HomeMy WebLinkAbout2024-02-12 City Council Agenda PacketCITY COUNCIL
Regular Meeting
Monday, February 12, 2024
Council Chambers & Hybrid
5:30 PM
Amended Agenda
Amended agenda items appear below in RED
Palo Alto City Council meetings will be held as “hybrid” meetings with the option to attend by
teleconference or in person. To maximize public safety while still maintaining transparency and
public access, members of the public can choose to participate from home or attend in person.
Information on how the public may observe and participate in the meeting is located at the end
of the agenda. Masks are strongly encouraged if attending in person. The meeting will be
broadcast on Cable TV Channel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto,
and streamed to Midpen Media Center https://midpenmedia.org.
VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238)
Meeting ID: 362 027 238 Phone:1(669)900‐6833
PUBLIC COMMENTS
Public comments will be accepted both in person and via Zoom for up to three minutes or an
amount of time determined by the Chair. All requests to speak will be taken until 5 minutes
after the staff’s presentation. Written public comments can be submitted in advance to
city.council@CityofPaloAlto.org and will be provided to the Council and available for inspection
on the City’s website. Please clearly indicate which agenda item you are referencing in your
subject line.
PowerPoints, videos, or other media to be presented during public comment are accepted only
by email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received,
the Clerk will have them shared at public comment for the specified item. To uphold strong
cybersecurity management practices, USB’s or other physical electronic storage devices are not
accepted.
TIME ESTIMATES
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.
CALL TO ORDER
CLOSED SESSION (5:30 ‐ 6:00 PM)
AA1.CONFERENCE WITH REAL PROPERTY NEGOTIATORS Authority: Government Code
Section 54956.8 Property: 4000 Middlefield Road, Palo Alto (Informally known as the
Cubberley Site) Negotiating Party: Palo Alto Unified School District City Negotiators:
(Ed Shikada, Chantal Cotton Gaines, Kristen O'Kane, Sunny Tong) Subject of
Negotiations: Purchase, Exchange, and/or Lease Price and Terms of Payment New
Item added
AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (6:00 ‐ 6:15 PM)
Members of the public may speak to any item NOT on the agenda. 1‐3 minutes depending on # of speakers. Council reserves
the right to limit the duration of Oral Communications period to 30 minutes.
COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (6:15 ‐ 6:20 PM)
Members of the public may not speak to the item(s).
STUDY SESSION (6:20 ‐ 7:50 PM)
1.Reliability and Resiliency Strategic Plan for the City’s Electric Utility
CONSENT CALENDAR (7:50 ‐ 7:55 PM)
Items will be voted in one motion unless removed from the calendar by three Council Members.
2.Approval of Minutes from January 22, 2024 and January 29, 2024 Meetings
3.Approval of Contract Number C24187805 With Carollo Engineers, Inc. in the Total
Amount Not‐to‐Exceed $1,628,326 for Planning and Preliminary Design of a Headworks
Facility at the Regional Water Quality Control Plant, funded by Wastewater Treatment
Enterprise Fund Capital Improvement Program Project WQ‐16002; CEQA Status – Not a
“Project.”
4.Approval of Two General Services Contracts in the Wastewater Treatment Enterprise
Fund: a Contract with Lystek International Limited in an Amount Not to Exceed
$5,322,769 and a Contract with Synagro‐WWT, Inc. in an Amount Not to Exceed
$7,617,013, Both for Offsite Sludge Treatment Services for a Five‐Year Term; CEQA
status ‐ exempt
5.Adoption of Resolution to Authorize Stanford University to Enforce Unauthorized Parking
in Several of Its Parking Facilities under Vehicle Code § 21107.8; CEQA Status – Not a
Project
6.Approval of Contract Number C24188120 with Summit Uniforms, LLC for Five Years for a
Maximum Compensation Amount Not‐to‐Exceed $720,000 ($144,000/yr) for the Purchase
of Police, Fire, and Park Ranger Uniforms and Related Equipment; CEQA status ‐ not a
project.
7.Approval of a General Services Contract Number C24189570 with Downtown Streets
Team, Inc. in an Amount Not to Exceed $528,409 for Cleaning Services in the University
Avenue and California Avenue Business Districts for a Period of Three Years; CEQA
status – Not a Project
8.Approval of Contract Amendments with AgreeYa Solutions, INC., Elegant Enterprise‐Wide
Solutions, INC., Forsys, INC., Object Technology Solutions, INC., Techlink Systems, INC.,
ZION Cloud Solutions, INC., and Inspyr Solutions, LLC., for IT On‐Call Professional
Services, to Increase the Combined Annual Not‐To‐Exceed Amount to $1,250,000 and a
Contract Not‐To‐Exceed total of $3,940,000; CEQA Status ‐ Not a Project.
9.Approval of Contract No. C24188884 With WaterTALENT, LLC for Temporary Consultant
Support for Public Works and Utilities Departments in a Not to Exceed Amount of
$1,896,000 Over Three Years, With Two One‐Year Extension Options; Not to Exceed
$830,400 for Year One and Not to Exceed $532,800 per Year for Years Two and Three
and Optional Extensions if Authorized; CEQA Status ‐ Not a Project
CITY MANAGER COMMENTS (7:55 ‐ 8:10 PM)
BREAK (5‐10 MINUTES)
ACTION ITEMS (Item 10: 8:20 ‐ 9:05 PM, Item 11: 9:05 ‐ 10:35 PM, Item 12: 10:35 ‐ 10:50 PM )
Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished
Business and Council Matters.
10.Adopt a Resolution Modifying the City’s Objective Design Standards for SB 9 Projects.
11.Discuss the FY 2024 Mid‐Year Budget Review and Approve 1) FY 2024 Budget
Amendments in Various Funds, and 2) Amendments to the FY 2024 Table of
Organization to add 1.00 Full Time Equivalent (FTE) Position. CEQA Status – Not a
Project.
12.Adoption of a Resolution Certifying the Need for an Exception to the California Public
Employees Retirement System (CalPERS) 180‐day Waiting Period to Hire Matthew
Raschke as a Retired Annuitant Extra Help Senior Engineer. CEQA status ‐ Not a Project
ADJOURNMENT
INFORMATION REPORTS
Information reports are provided for informational purposes only to the Council and the public but are not listed for action
during this meeting’s agenda.
13.Informational Update: Recently Promulgated and Pending Federal Regulations
Governing Lead in Drinking Water
14.Investment Activity Report for the Second Quarter, Fiscal Year 2024
15.Sales Tax Digest Summary Calendar 2023 (July 2023 ‐ Sept 2023)
OTHER INFORMATION
Standing Committee Meetings this week
Policy & Services Committee February 13, 2024
City/School Liaison Committee February 15, 2024
Public Comment Letters
Schedule of Meetings
AMENDED AGENDA ITEMS
AA1.CONFERENCE WITH REAL PROPERTY NEGOTIATORS Authority: Government Code
Section 54956.8 Property: 4000 Middlefield Road, Palo Alto (Informally known as the
Cubberley Site) Negotiating Party: Palo Alto Unified School District City Negotiators:
(Ed Shikada, Chantal Cotton Gaines, Kristen O'Kane, Sunny Tong) Subject of
Negotiations: Purchase, Exchange, and/or Lease Price and Terms of Payment New
Item added
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email,
teleconference, or by phone.
1. Written public comments may be submitted by email to city.council@cityofpaloalto.org.
2. For in person public comments please complete a speaker request card located on the
table at the entrance to the Council Chambers and deliver it to the Clerk prior to
discussion of the item.
3. Spoken public comments using a computer or smart phone will be accepted through
the teleconference meeting. To address the Council, click on the link below to access a
Zoom‐based meeting. Please read the following instructions carefully.
You may download the Zoom client or connect to the meeting in‐ browser. If using
your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 ,
Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in
older browsers including Internet Explorer. Or download the Zoom application onto
your smart phone from the Apple App Store or Google Play Store and enter in the
Meeting ID below.
You may be asked to enter an email address and name. We request that you
identify yourself by name as this will be visible online and will be used to notify you
that it is your turn to speak.
When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will
activate and unmute speakers in turn. Speakers will be notified shortly before they
are called to speak.
When called, please limit your remarks to the time limit allotted. A timer will be
shown on the computer to help keep track of your comments.
4. Spoken public comments using a phone use the telephone number listed below. When
you wish to speak on an agenda item hit *9 on your phone so we know that you wish to
speak. You will be asked to provide your first and last name before addressing the
Council. You will be advised how long you have to speak. When called please limit your
remarks to the agenda item and time limit allotted.
CLICK HERE TO JOIN Meeting ID: 362‐027‐238 Phone: 1‐669‐900‐6833
Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public
programs, services and meetings in a manner that is readily accessible to all. Persons with
disabilities who require materials in an appropriate alternative format or who require auxiliary
aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at
(650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or
accommodations must be submitted at least 24 hours in advance of the meeting, program, or
service.
1 February 12, 2024
Materials submitted after distribution of the agenda packet are available for public inspection
at www.CityofPaloAlto.org/agendas.
CITY COUNCILRegular MeetingMonday, February 12, 2024Council Chambers & Hybrid5:30 PMAmended AgendaAmended agenda items appear below in REDPalo Alto City Council meetings will be held as “hybrid” meetings with the option to attend byteleconference or in person. To maximize public safety while still maintaining transparency andpublic access, members of the public can choose to participate from home or attend in person.Information on how the public may observe and participate in the meeting is located at the endof the agenda. Masks are strongly encouraged if attending in person. The meeting will bebroadcast on Cable TV Channel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto,and streamed to Midpen Media Center https://midpenmedia.org.VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238) Meeting ID: 362 027 238 Phone:1(669)900‐6833PUBLIC COMMENTSPublic comments will be accepted both in person and via Zoom for up to three minutes or anamount of time determined by the Chair. All requests to speak will be taken until 5 minutesafter the staff’s presentation. Written public comments can be submitted in advance tocity.council@CityofPaloAlto.org and will be provided to the Council and available for inspectionon the City’s website. Please clearly indicate which agenda item you are referencing in yoursubject line.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received,the Clerk will have them shared at public comment for the specified item. To uphold strongcybersecurity management practices, USB’s or other physical electronic storage devices are notaccepted.TIME ESTIMATES
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.
CALL TO ORDER
CLOSED SESSION (5:30 ‐ 6:00 PM)
AA1.CONFERENCE WITH REAL PROPERTY NEGOTIATORS Authority: Government Code
Section 54956.8 Property: 4000 Middlefield Road, Palo Alto (Informally known as the
Cubberley Site) Negotiating Party: Palo Alto Unified School District City Negotiators:
(Ed Shikada, Chantal Cotton Gaines, Kristen O'Kane, Sunny Tong) Subject of
Negotiations: Purchase, Exchange, and/or Lease Price and Terms of Payment New
Item added
AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (6:00 ‐ 6:15 PM)
Members of the public may speak to any item NOT on the agenda. 1‐3 minutes depending on # of speakers. Council reserves
the right to limit the duration of Oral Communications period to 30 minutes.
COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (6:15 ‐ 6:20 PM)
Members of the public may not speak to the item(s).
STUDY SESSION (6:20 ‐ 7:50 PM)
1.Reliability and Resiliency Strategic Plan for the City’s Electric Utility
CONSENT CALENDAR (7:50 ‐ 7:55 PM)
Items will be voted in one motion unless removed from the calendar by three Council Members.
2.Approval of Minutes from January 22, 2024 and January 29, 2024 Meetings
3.Approval of Contract Number C24187805 With Carollo Engineers, Inc. in the Total
Amount Not‐to‐Exceed $1,628,326 for Planning and Preliminary Design of a Headworks
Facility at the Regional Water Quality Control Plant, funded by Wastewater Treatment
Enterprise Fund Capital Improvement Program Project WQ‐16002; CEQA Status – Not a
“Project.”
4.Approval of Two General Services Contracts in the Wastewater Treatment Enterprise
Fund: a Contract with Lystek International Limited in an Amount Not to Exceed
$5,322,769 and a Contract with Synagro‐WWT, Inc. in an Amount Not to Exceed
$7,617,013, Both for Offsite Sludge Treatment Services for a Five‐Year Term; CEQA
status ‐ exempt
5.Adoption of Resolution to Authorize Stanford University to Enforce Unauthorized Parking
in Several of Its Parking Facilities under Vehicle Code § 21107.8; CEQA Status – Not a
Project
6.Approval of Contract Number C24188120 with Summit Uniforms, LLC for Five Years for a
Maximum Compensation Amount Not‐to‐Exceed $720,000 ($144,000/yr) for the Purchase
of Police, Fire, and Park Ranger Uniforms and Related Equipment; CEQA status ‐ not a
project.
7.Approval of a General Services Contract Number C24189570 with Downtown Streets
Team, Inc. in an Amount Not to Exceed $528,409 for Cleaning Services in the University
Avenue and California Avenue Business Districts for a Period of Three Years; CEQA
status – Not a Project
8.Approval of Contract Amendments with AgreeYa Solutions, INC., Elegant Enterprise‐Wide
Solutions, INC., Forsys, INC., Object Technology Solutions, INC., Techlink Systems, INC.,
ZION Cloud Solutions, INC., and Inspyr Solutions, LLC., for IT On‐Call Professional
Services, to Increase the Combined Annual Not‐To‐Exceed Amount to $1,250,000 and a
Contract Not‐To‐Exceed total of $3,940,000; CEQA Status ‐ Not a Project.
9.Approval of Contract No. C24188884 With WaterTALENT, LLC for Temporary Consultant
Support for Public Works and Utilities Departments in a Not to Exceed Amount of
$1,896,000 Over Three Years, With Two One‐Year Extension Options; Not to Exceed
$830,400 for Year One and Not to Exceed $532,800 per Year for Years Two and Three
and Optional Extensions if Authorized; CEQA Status ‐ Not a Project
CITY MANAGER COMMENTS (7:55 ‐ 8:10 PM)
BREAK (5‐10 MINUTES)
ACTION ITEMS (Item 10: 8:20 ‐ 9:05 PM, Item 11: 9:05 ‐ 10:35 PM, Item 12: 10:35 ‐ 10:50 PM )
Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished
Business and Council Matters.
10.Adopt a Resolution Modifying the City’s Objective Design Standards for SB 9 Projects.
11.Discuss the FY 2024 Mid‐Year Budget Review and Approve 1) FY 2024 Budget
Amendments in Various Funds, and 2) Amendments to the FY 2024 Table of
Organization to add 1.00 Full Time Equivalent (FTE) Position. CEQA Status – Not a
Project.
12.Adoption of a Resolution Certifying the Need for an Exception to the California Public
Employees Retirement System (CalPERS) 180‐day Waiting Period to Hire Matthew
Raschke as a Retired Annuitant Extra Help Senior Engineer. CEQA status ‐ Not a Project
ADJOURNMENT
INFORMATION REPORTS
Information reports are provided for informational purposes only to the Council and the public but are not listed for action
during this meeting’s agenda.
13.Informational Update: Recently Promulgated and Pending Federal Regulations
Governing Lead in Drinking Water
14.Investment Activity Report for the Second Quarter, Fiscal Year 2024
15.Sales Tax Digest Summary Calendar 2023 (July 2023 ‐ Sept 2023)
OTHER INFORMATION
Standing Committee Meetings this week
Policy & Services Committee February 13, 2024
City/School Liaison Committee February 15, 2024
Public Comment Letters
Schedule of Meetings
AMENDED AGENDA ITEMS
AA1.CONFERENCE WITH REAL PROPERTY NEGOTIATORS Authority: Government Code
Section 54956.8 Property: 4000 Middlefield Road, Palo Alto (Informally known as the
Cubberley Site) Negotiating Party: Palo Alto Unified School District City Negotiators:
(Ed Shikada, Chantal Cotton Gaines, Kristen O'Kane, Sunny Tong) Subject of
Negotiations: Purchase, Exchange, and/or Lease Price and Terms of Payment New
Item added
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email,
teleconference, or by phone.
1. Written public comments may be submitted by email to city.council@cityofpaloalto.org.
2. For in person public comments please complete a speaker request card located on the
table at the entrance to the Council Chambers and deliver it to the Clerk prior to
discussion of the item.
3. Spoken public comments using a computer or smart phone will be accepted through
the teleconference meeting. To address the Council, click on the link below to access a
Zoom‐based meeting. Please read the following instructions carefully.
You may download the Zoom client or connect to the meeting in‐ browser. If using
your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 ,
Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in
older browsers including Internet Explorer. Or download the Zoom application onto
your smart phone from the Apple App Store or Google Play Store and enter in the
Meeting ID below.
You may be asked to enter an email address and name. We request that you
identify yourself by name as this will be visible online and will be used to notify you
that it is your turn to speak.
When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will
activate and unmute speakers in turn. Speakers will be notified shortly before they
are called to speak.
When called, please limit your remarks to the time limit allotted. A timer will be
shown on the computer to help keep track of your comments.
4. Spoken public comments using a phone use the telephone number listed below. When
you wish to speak on an agenda item hit *9 on your phone so we know that you wish to
speak. You will be asked to provide your first and last name before addressing the
Council. You will be advised how long you have to speak. When called please limit your
remarks to the agenda item and time limit allotted.
CLICK HERE TO JOIN Meeting ID: 362‐027‐238 Phone: 1‐669‐900‐6833
Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public
programs, services and meetings in a manner that is readily accessible to all. Persons with
disabilities who require materials in an appropriate alternative format or who require auxiliary
aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at
(650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or
accommodations must be submitted at least 24 hours in advance of the meeting, program, or
service.
2 February 12, 2024
Materials submitted after distribution of the agenda packet are available for public inspection
at www.CityofPaloAlto.org/agendas.
CITY COUNCILRegular MeetingMonday, February 12, 2024Council Chambers & Hybrid5:30 PMAmended AgendaAmended agenda items appear below in REDPalo Alto City Council meetings will be held as “hybrid” meetings with the option to attend byteleconference or in person. To maximize public safety while still maintaining transparency andpublic access, members of the public can choose to participate from home or attend in person.Information on how the public may observe and participate in the meeting is located at the endof the agenda. Masks are strongly encouraged if attending in person. The meeting will bebroadcast on Cable TV Channel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto,and streamed to Midpen Media Center https://midpenmedia.org.VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238) Meeting ID: 362 027 238 Phone:1(669)900‐6833PUBLIC COMMENTSPublic comments will be accepted both in person and via Zoom for up to three minutes or anamount of time determined by the Chair. All requests to speak will be taken until 5 minutesafter the staff’s presentation. Written public comments can be submitted in advance tocity.council@CityofPaloAlto.org and will be provided to the Council and available for inspectionon the City’s website. Please clearly indicate which agenda item you are referencing in yoursubject line.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received,the Clerk will have them shared at public comment for the specified item. To uphold strongcybersecurity management practices, USB’s or other physical electronic storage devices are notaccepted.TIME ESTIMATESListed times are estimates only and are subject to change at any time, including while themeeting is in progress. The Council reserves the right to use more or less time on any item, tochange the order of items and/or to continue items to another meeting. Particular items may beheard before or after the time estimated on the agenda. This may occur in order to best managethe time at a meeting or to adapt to the participation of the public.CALL TO ORDERCLOSED SESSION (5:30 ‐ 6:00 PM)AA1.CONFERENCE WITH REAL PROPERTY NEGOTIATORS Authority: Government CodeSection 54956.8 Property: 4000 Middlefield Road, Palo Alto (Informally known as theCubberley Site) Negotiating Party: Palo Alto Unified School District City Negotiators:(Ed Shikada, Chantal Cotton Gaines, Kristen O'Kane, Sunny Tong) Subject ofNegotiations: Purchase, Exchange, and/or Lease Price and Terms of Payment NewItem addedAGENDA CHANGES, ADDITIONS AND DELETIONSPUBLIC COMMENT (6:00 ‐ 6:15 PM)Members of the public may speak to any item NOT on the agenda. 1‐3 minutes depending on # of speakers. Council reservesthe right to limit the duration of Oral Communications period to 30 minutes.COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (6:15 ‐ 6:20 PM)Members of the public may not speak to the item(s).STUDY SESSION (6:20 ‐ 7:50 PM)1.Reliability and Resiliency Strategic Plan for the City’s Electric UtilityCONSENT CALENDAR (7:50 ‐ 7:55 PM)Items will be voted in one motion unless removed from the calendar by three Council Members.2.Approval of Minutes from January 22, 2024 and January 29, 2024 Meetings3.Approval of Contract Number C24187805 With Carollo Engineers, Inc. in the TotalAmount Not‐to‐Exceed $1,628,326 for Planning and Preliminary Design of a HeadworksFacility at the Regional Water Quality Control Plant, funded by Wastewater TreatmentEnterprise Fund Capital Improvement Program Project WQ‐16002; CEQA Status – Not a“Project.”4.Approval of Two General Services Contracts in the Wastewater Treatment Enterprise
Fund: a Contract with Lystek International Limited in an Amount Not to Exceed
$5,322,769 and a Contract with Synagro‐WWT, Inc. in an Amount Not to Exceed
$7,617,013, Both for Offsite Sludge Treatment Services for a Five‐Year Term; CEQA
status ‐ exempt
5.Adoption of Resolution to Authorize Stanford University to Enforce Unauthorized Parking
in Several of Its Parking Facilities under Vehicle Code § 21107.8; CEQA Status – Not a
Project
6.Approval of Contract Number C24188120 with Summit Uniforms, LLC for Five Years for a
Maximum Compensation Amount Not‐to‐Exceed $720,000 ($144,000/yr) for the Purchase
of Police, Fire, and Park Ranger Uniforms and Related Equipment; CEQA status ‐ not a
project.
7.Approval of a General Services Contract Number C24189570 with Downtown Streets
Team, Inc. in an Amount Not to Exceed $528,409 for Cleaning Services in the University
Avenue and California Avenue Business Districts for a Period of Three Years; CEQA
status – Not a Project
8.Approval of Contract Amendments with AgreeYa Solutions, INC., Elegant Enterprise‐Wide
Solutions, INC., Forsys, INC., Object Technology Solutions, INC., Techlink Systems, INC.,
ZION Cloud Solutions, INC., and Inspyr Solutions, LLC., for IT On‐Call Professional
Services, to Increase the Combined Annual Not‐To‐Exceed Amount to $1,250,000 and a
Contract Not‐To‐Exceed total of $3,940,000; CEQA Status ‐ Not a Project.
9.Approval of Contract No. C24188884 With WaterTALENT, LLC for Temporary Consultant
Support for Public Works and Utilities Departments in a Not to Exceed Amount of
$1,896,000 Over Three Years, With Two One‐Year Extension Options; Not to Exceed
$830,400 for Year One and Not to Exceed $532,800 per Year for Years Two and Three
and Optional Extensions if Authorized; CEQA Status ‐ Not a Project
CITY MANAGER COMMENTS (7:55 ‐ 8:10 PM)
BREAK (5‐10 MINUTES)
ACTION ITEMS (Item 10: 8:20 ‐ 9:05 PM, Item 11: 9:05 ‐ 10:35 PM, Item 12: 10:35 ‐ 10:50 PM )
Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished
Business and Council Matters.
10.Adopt a Resolution Modifying the City’s Objective Design Standards for SB 9 Projects.
11.Discuss the FY 2024 Mid‐Year Budget Review and Approve 1) FY 2024 Budget
Amendments in Various Funds, and 2) Amendments to the FY 2024 Table of
Organization to add 1.00 Full Time Equivalent (FTE) Position. CEQA Status – Not a
Project.
12.Adoption of a Resolution Certifying the Need for an Exception to the California Public
Employees Retirement System (CalPERS) 180‐day Waiting Period to Hire Matthew
Raschke as a Retired Annuitant Extra Help Senior Engineer. CEQA status ‐ Not a Project
ADJOURNMENT
INFORMATION REPORTS
Information reports are provided for informational purposes only to the Council and the public but are not listed for action
during this meeting’s agenda.
13.Informational Update: Recently Promulgated and Pending Federal Regulations
Governing Lead in Drinking Water
14.Investment Activity Report for the Second Quarter, Fiscal Year 2024
15.Sales Tax Digest Summary Calendar 2023 (July 2023 ‐ Sept 2023)
OTHER INFORMATION
Standing Committee Meetings this week
Policy & Services Committee February 13, 2024
City/School Liaison Committee February 15, 2024
Public Comment Letters
Schedule of Meetings
AMENDED AGENDA ITEMS
AA1.CONFERENCE WITH REAL PROPERTY NEGOTIATORS Authority: Government Code
Section 54956.8 Property: 4000 Middlefield Road, Palo Alto (Informally known as the
Cubberley Site) Negotiating Party: Palo Alto Unified School District City Negotiators:
(Ed Shikada, Chantal Cotton Gaines, Kristen O'Kane, Sunny Tong) Subject of
Negotiations: Purchase, Exchange, and/or Lease Price and Terms of Payment New
Item added
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email,
teleconference, or by phone.
1. Written public comments may be submitted by email to city.council@cityofpaloalto.org.
2. For in person public comments please complete a speaker request card located on the
table at the entrance to the Council Chambers and deliver it to the Clerk prior to
discussion of the item.
3. Spoken public comments using a computer or smart phone will be accepted through
the teleconference meeting. To address the Council, click on the link below to access a
Zoom‐based meeting. Please read the following instructions carefully.
You may download the Zoom client or connect to the meeting in‐ browser. If using
your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 ,
Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in
older browsers including Internet Explorer. Or download the Zoom application onto
your smart phone from the Apple App Store or Google Play Store and enter in the
Meeting ID below.
You may be asked to enter an email address and name. We request that you
identify yourself by name as this will be visible online and will be used to notify you
that it is your turn to speak.
When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will
activate and unmute speakers in turn. Speakers will be notified shortly before they
are called to speak.
When called, please limit your remarks to the time limit allotted. A timer will be
shown on the computer to help keep track of your comments.
4. Spoken public comments using a phone use the telephone number listed below. When
you wish to speak on an agenda item hit *9 on your phone so we know that you wish to
speak. You will be asked to provide your first and last name before addressing the
Council. You will be advised how long you have to speak. When called please limit your
remarks to the agenda item and time limit allotted.
CLICK HERE TO JOIN Meeting ID: 362‐027‐238 Phone: 1‐669‐900‐6833
Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public
programs, services and meetings in a manner that is readily accessible to all. Persons with
disabilities who require materials in an appropriate alternative format or who require auxiliary
aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at
(650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or
accommodations must be submitted at least 24 hours in advance of the meeting, program, or
service.
3 February 12, 2024
Materials submitted after distribution of the agenda packet are available for public inspection
at www.CityofPaloAlto.org/agendas.
CITY COUNCILRegular MeetingMonday, February 12, 2024Council Chambers & Hybrid5:30 PMAmended AgendaAmended agenda items appear below in REDPalo Alto City Council meetings will be held as “hybrid” meetings with the option to attend byteleconference or in person. To maximize public safety while still maintaining transparency andpublic access, members of the public can choose to participate from home or attend in person.Information on how the public may observe and participate in the meeting is located at the endof the agenda. Masks are strongly encouraged if attending in person. The meeting will bebroadcast on Cable TV Channel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto,and streamed to Midpen Media Center https://midpenmedia.org.VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238) Meeting ID: 362 027 238 Phone:1(669)900‐6833PUBLIC COMMENTSPublic comments will be accepted both in person and via Zoom for up to three minutes or anamount of time determined by the Chair. All requests to speak will be taken until 5 minutesafter the staff’s presentation. Written public comments can be submitted in advance tocity.council@CityofPaloAlto.org and will be provided to the Council and available for inspectionon the City’s website. Please clearly indicate which agenda item you are referencing in yoursubject line.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received,the Clerk will have them shared at public comment for the specified item. To uphold strongcybersecurity management practices, USB’s or other physical electronic storage devices are notaccepted.TIME ESTIMATESListed times are estimates only and are subject to change at any time, including while themeeting is in progress. The Council reserves the right to use more or less time on any item, tochange the order of items and/or to continue items to another meeting. Particular items may beheard before or after the time estimated on the agenda. This may occur in order to best managethe time at a meeting or to adapt to the participation of the public.CALL TO ORDERCLOSED SESSION (5:30 ‐ 6:00 PM)AA1.CONFERENCE WITH REAL PROPERTY NEGOTIATORS Authority: Government CodeSection 54956.8 Property: 4000 Middlefield Road, Palo Alto (Informally known as theCubberley Site) Negotiating Party: Palo Alto Unified School District City Negotiators:(Ed Shikada, Chantal Cotton Gaines, Kristen O'Kane, Sunny Tong) Subject ofNegotiations: Purchase, Exchange, and/or Lease Price and Terms of Payment NewItem addedAGENDA CHANGES, ADDITIONS AND DELETIONSPUBLIC COMMENT (6:00 ‐ 6:15 PM)Members of the public may speak to any item NOT on the agenda. 1‐3 minutes depending on # of speakers. Council reservesthe right to limit the duration of Oral Communications period to 30 minutes.COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (6:15 ‐ 6:20 PM)Members of the public may not speak to the item(s).STUDY SESSION (6:20 ‐ 7:50 PM)1.Reliability and Resiliency Strategic Plan for the City’s Electric UtilityCONSENT CALENDAR (7:50 ‐ 7:55 PM)Items will be voted in one motion unless removed from the calendar by three Council Members.2.Approval of Minutes from January 22, 2024 and January 29, 2024 Meetings3.Approval of Contract Number C24187805 With Carollo Engineers, Inc. in the TotalAmount Not‐to‐Exceed $1,628,326 for Planning and Preliminary Design of a HeadworksFacility at the Regional Water Quality Control Plant, funded by Wastewater TreatmentEnterprise Fund Capital Improvement Program Project WQ‐16002; CEQA Status – Not a“Project.”4.Approval of Two General Services Contracts in the Wastewater Treatment EnterpriseFund: a Contract with Lystek International Limited in an Amount Not to Exceed$5,322,769 and a Contract with Synagro‐WWT, Inc. in an Amount Not to Exceed$7,617,013, Both for Offsite Sludge Treatment Services for a Five‐Year Term; CEQAstatus ‐ exempt5.Adoption of Resolution to Authorize Stanford University to Enforce Unauthorized Parkingin Several of Its Parking Facilities under Vehicle Code § 21107.8; CEQA Status – Not aProject6.Approval of Contract Number C24188120 with Summit Uniforms, LLC for Five Years for aMaximum Compensation Amount Not‐to‐Exceed $720,000 ($144,000/yr) for the Purchaseof Police, Fire, and Park Ranger Uniforms and Related Equipment; CEQA status ‐ not aproject.7.Approval of a General Services Contract Number C24189570 with Downtown StreetsTeam, Inc. in an Amount Not to Exceed $528,409 for Cleaning Services in the UniversityAvenue and California Avenue Business Districts for a Period of Three Years; CEQAstatus – Not a Project8.Approval of Contract Amendments with AgreeYa Solutions, INC., Elegant Enterprise‐WideSolutions, INC., Forsys, INC., Object Technology Solutions, INC., Techlink Systems, INC.,ZION Cloud Solutions, INC., and Inspyr Solutions, LLC., for IT On‐Call ProfessionalServices, to Increase the Combined Annual Not‐To‐Exceed Amount to $1,250,000 and aContract Not‐To‐Exceed total of $3,940,000; CEQA Status ‐ Not a Project.9.Approval of Contract No. C24188884 With WaterTALENT, LLC for Temporary ConsultantSupport for Public Works and Utilities Departments in a Not to Exceed Amount of$1,896,000 Over Three Years, With Two One‐Year Extension Options; Not to Exceed$830,400 for Year One and Not to Exceed $532,800 per Year for Years Two and Threeand Optional Extensions if Authorized; CEQA Status ‐ Not a ProjectCITY MANAGER COMMENTS (7:55 ‐ 8:10 PM)BREAK (5‐10 MINUTES)ACTION ITEMS (Item 10: 8:20 ‐ 9:05 PM, Item 11: 9:05 ‐ 10:35 PM, Item 12: 10:35 ‐ 10:50 PM )Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, UnfinishedBusiness and Council Matters.10.Adopt a Resolution Modifying the City’s Objective Design Standards for SB 9 Projects.11.Discuss the FY 2024 Mid‐Year Budget Review and Approve 1) FY 2024 BudgetAmendments in Various Funds, and 2) Amendments to the FY 2024 Table of
Organization to add 1.00 Full Time Equivalent (FTE) Position. CEQA Status – Not a
Project.
12.Adoption of a Resolution Certifying the Need for an Exception to the California Public
Employees Retirement System (CalPERS) 180‐day Waiting Period to Hire Matthew
Raschke as a Retired Annuitant Extra Help Senior Engineer. CEQA status ‐ Not a Project
ADJOURNMENT
INFORMATION REPORTS
Information reports are provided for informational purposes only to the Council and the public but are not listed for action
during this meeting’s agenda.
13.Informational Update: Recently Promulgated and Pending Federal Regulations
Governing Lead in Drinking Water
14.Investment Activity Report for the Second Quarter, Fiscal Year 2024
15.Sales Tax Digest Summary Calendar 2023 (July 2023 ‐ Sept 2023)
OTHER INFORMATION
Standing Committee Meetings this week
Policy & Services Committee February 13, 2024
City/School Liaison Committee February 15, 2024
Public Comment Letters
Schedule of Meetings
AMENDED AGENDA ITEMS
AA1.CONFERENCE WITH REAL PROPERTY NEGOTIATORS Authority: Government Code
Section 54956.8 Property: 4000 Middlefield Road, Palo Alto (Informally known as the
Cubberley Site) Negotiating Party: Palo Alto Unified School District City Negotiators:
(Ed Shikada, Chantal Cotton Gaines, Kristen O'Kane, Sunny Tong) Subject of
Negotiations: Purchase, Exchange, and/or Lease Price and Terms of Payment New
Item added
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email,
teleconference, or by phone.
1. Written public comments may be submitted by email to city.council@cityofpaloalto.org.
2. For in person public comments please complete a speaker request card located on the
table at the entrance to the Council Chambers and deliver it to the Clerk prior to
discussion of the item.
3. Spoken public comments using a computer or smart phone will be accepted through
the teleconference meeting. To address the Council, click on the link below to access a
Zoom‐based meeting. Please read the following instructions carefully.
You may download the Zoom client or connect to the meeting in‐ browser. If using
your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 ,
Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in
older browsers including Internet Explorer. Or download the Zoom application onto
your smart phone from the Apple App Store or Google Play Store and enter in the
Meeting ID below.
You may be asked to enter an email address and name. We request that you
identify yourself by name as this will be visible online and will be used to notify you
that it is your turn to speak.
When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will
activate and unmute speakers in turn. Speakers will be notified shortly before they
are called to speak.
When called, please limit your remarks to the time limit allotted. A timer will be
shown on the computer to help keep track of your comments.
4. Spoken public comments using a phone use the telephone number listed below. When
you wish to speak on an agenda item hit *9 on your phone so we know that you wish to
speak. You will be asked to provide your first and last name before addressing the
Council. You will be advised how long you have to speak. When called please limit your
remarks to the agenda item and time limit allotted.
CLICK HERE TO JOIN Meeting ID: 362‐027‐238 Phone: 1‐669‐900‐6833
Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public
programs, services and meetings in a manner that is readily accessible to all. Persons with
disabilities who require materials in an appropriate alternative format or who require auxiliary
aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at
(650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or
accommodations must be submitted at least 24 hours in advance of the meeting, program, or
service.
4 February 12, 2024
Materials submitted after distribution of the agenda packet are available for public inspection
at www.CityofPaloAlto.org/agendas.
CITY COUNCILRegular MeetingMonday, February 12, 2024Council Chambers & Hybrid5:30 PMAmended AgendaAmended agenda items appear below in REDPalo Alto City Council meetings will be held as “hybrid” meetings with the option to attend byteleconference or in person. To maximize public safety while still maintaining transparency andpublic access, members of the public can choose to participate from home or attend in person.Information on how the public may observe and participate in the meeting is located at the endof the agenda. Masks are strongly encouraged if attending in person. The meeting will bebroadcast on Cable TV Channel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto,and streamed to Midpen Media Center https://midpenmedia.org.VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238) Meeting ID: 362 027 238 Phone:1(669)900‐6833PUBLIC COMMENTSPublic comments will be accepted both in person and via Zoom for up to three minutes or anamount of time determined by the Chair. All requests to speak will be taken until 5 minutesafter the staff’s presentation. Written public comments can be submitted in advance tocity.council@CityofPaloAlto.org and will be provided to the Council and available for inspectionon the City’s website. Please clearly indicate which agenda item you are referencing in yoursubject line.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received,the Clerk will have them shared at public comment for the specified item. To uphold strongcybersecurity management practices, USB’s or other physical electronic storage devices are notaccepted.TIME ESTIMATESListed times are estimates only and are subject to change at any time, including while themeeting is in progress. The Council reserves the right to use more or less time on any item, tochange the order of items and/or to continue items to another meeting. Particular items may beheard before or after the time estimated on the agenda. This may occur in order to best managethe time at a meeting or to adapt to the participation of the public.CALL TO ORDERCLOSED SESSION (5:30 ‐ 6:00 PM)AA1.CONFERENCE WITH REAL PROPERTY NEGOTIATORS Authority: Government CodeSection 54956.8 Property: 4000 Middlefield Road, Palo Alto (Informally known as theCubberley Site) Negotiating Party: Palo Alto Unified School District City Negotiators:(Ed Shikada, Chantal Cotton Gaines, Kristen O'Kane, Sunny Tong) Subject ofNegotiations: Purchase, Exchange, and/or Lease Price and Terms of Payment NewItem addedAGENDA CHANGES, ADDITIONS AND DELETIONSPUBLIC COMMENT (6:00 ‐ 6:15 PM)Members of the public may speak to any item NOT on the agenda. 1‐3 minutes depending on # of speakers. Council reservesthe right to limit the duration of Oral Communications period to 30 minutes.COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (6:15 ‐ 6:20 PM)Members of the public may not speak to the item(s).STUDY SESSION (6:20 ‐ 7:50 PM)1.Reliability and Resiliency Strategic Plan for the City’s Electric UtilityCONSENT CALENDAR (7:50 ‐ 7:55 PM)Items will be voted in one motion unless removed from the calendar by three Council Members.2.Approval of Minutes from January 22, 2024 and January 29, 2024 Meetings3.Approval of Contract Number C24187805 With Carollo Engineers, Inc. in the TotalAmount Not‐to‐Exceed $1,628,326 for Planning and Preliminary Design of a HeadworksFacility at the Regional Water Quality Control Plant, funded by Wastewater TreatmentEnterprise Fund Capital Improvement Program Project WQ‐16002; CEQA Status – Not a“Project.”4.Approval of Two General Services Contracts in the Wastewater Treatment EnterpriseFund: a Contract with Lystek International Limited in an Amount Not to Exceed$5,322,769 and a Contract with Synagro‐WWT, Inc. in an Amount Not to Exceed$7,617,013, Both for Offsite Sludge Treatment Services for a Five‐Year Term; CEQAstatus ‐ exempt5.Adoption of Resolution to Authorize Stanford University to Enforce Unauthorized Parkingin Several of Its Parking Facilities under Vehicle Code § 21107.8; CEQA Status – Not aProject6.Approval of Contract Number C24188120 with Summit Uniforms, LLC for Five Years for aMaximum Compensation Amount Not‐to‐Exceed $720,000 ($144,000/yr) for the Purchaseof Police, Fire, and Park Ranger Uniforms and Related Equipment; CEQA status ‐ not aproject.7.Approval of a General Services Contract Number C24189570 with Downtown StreetsTeam, Inc. in an Amount Not to Exceed $528,409 for Cleaning Services in the UniversityAvenue and California Avenue Business Districts for a Period of Three Years; CEQAstatus – Not a Project8.Approval of Contract Amendments with AgreeYa Solutions, INC., Elegant Enterprise‐WideSolutions, INC., Forsys, INC., Object Technology Solutions, INC., Techlink Systems, INC.,ZION Cloud Solutions, INC., and Inspyr Solutions, LLC., for IT On‐Call ProfessionalServices, to Increase the Combined Annual Not‐To‐Exceed Amount to $1,250,000 and aContract Not‐To‐Exceed total of $3,940,000; CEQA Status ‐ Not a Project.9.Approval of Contract No. C24188884 With WaterTALENT, LLC for Temporary ConsultantSupport for Public Works and Utilities Departments in a Not to Exceed Amount of$1,896,000 Over Three Years, With Two One‐Year Extension Options; Not to Exceed$830,400 for Year One and Not to Exceed $532,800 per Year for Years Two and Threeand Optional Extensions if Authorized; CEQA Status ‐ Not a ProjectCITY MANAGER COMMENTS (7:55 ‐ 8:10 PM)BREAK (5‐10 MINUTES)ACTION ITEMS (Item 10: 8:20 ‐ 9:05 PM, Item 11: 9:05 ‐ 10:35 PM, Item 12: 10:35 ‐ 10:50 PM )Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, UnfinishedBusiness and Council Matters.10.Adopt a Resolution Modifying the City’s Objective Design Standards for SB 9 Projects.11.Discuss the FY 2024 Mid‐Year Budget Review and Approve 1) FY 2024 BudgetAmendments in Various Funds, and 2) Amendments to the FY 2024 Table ofOrganization to add 1.00 Full Time Equivalent (FTE) Position. CEQA Status – Not aProject.12.Adoption of a Resolution Certifying the Need for an Exception to the California PublicEmployees Retirement System (CalPERS) 180‐day Waiting Period to Hire MatthewRaschke as a Retired Annuitant Extra Help Senior Engineer. CEQA status ‐ Not a ProjectADJOURNMENTINFORMATION REPORTSInformation reports are provided for informational purposes only to the Council and the public but are not listed for actionduring this meeting’s agenda.13.Informational Update: Recently Promulgated and Pending Federal RegulationsGoverning Lead in Drinking Water14.Investment Activity Report for the Second Quarter, Fiscal Year 202415.Sales Tax Digest Summary Calendar 2023 (July 2023 ‐ Sept 2023)OTHER INFORMATIONStanding Committee Meetings this week Policy & Services Committee February 13, 2024 City/School Liaison Committee February 15, 2024Public Comment LettersSchedule of MeetingsAMENDED AGENDA ITEMSAA1.CONFERENCE WITH REAL PROPERTY NEGOTIATORS Authority: Government CodeSection 54956.8 Property: 4000 Middlefield Road, Palo Alto (Informally known as theCubberley Site) Negotiating Party: Palo Alto Unified School District City Negotiators:(Ed Shikada, Chantal Cotton Gaines, Kristen O'Kane, Sunny Tong) Subject ofNegotiations: Purchase, Exchange, and/or Lease Price and Terms of Payment NewItem added
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email,
teleconference, or by phone.
1. Written public comments may be submitted by email to city.council@cityofpaloalto.org.
2. For in person public comments please complete a speaker request card located on the
table at the entrance to the Council Chambers and deliver it to the Clerk prior to
discussion of the item.
3. Spoken public comments using a computer or smart phone will be accepted through
the teleconference meeting. To address the Council, click on the link below to access a
Zoom‐based meeting. Please read the following instructions carefully.
You may download the Zoom client or connect to the meeting in‐ browser. If using
your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 ,
Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in
older browsers including Internet Explorer. Or download the Zoom application onto
your smart phone from the Apple App Store or Google Play Store and enter in the
Meeting ID below.
You may be asked to enter an email address and name. We request that you
identify yourself by name as this will be visible online and will be used to notify you
that it is your turn to speak.
When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will
activate and unmute speakers in turn. Speakers will be notified shortly before they
are called to speak.
When called, please limit your remarks to the time limit allotted. A timer will be
shown on the computer to help keep track of your comments.
4. Spoken public comments using a phone use the telephone number listed below. When
you wish to speak on an agenda item hit *9 on your phone so we know that you wish to
speak. You will be asked to provide your first and last name before addressing the
Council. You will be advised how long you have to speak. When called please limit your
remarks to the agenda item and time limit allotted.
CLICK HERE TO JOIN Meeting ID: 362‐027‐238 Phone: 1‐669‐900‐6833
Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public
programs, services and meetings in a manner that is readily accessible to all. Persons with
disabilities who require materials in an appropriate alternative format or who require auxiliary
aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at
(650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or
accommodations must be submitted at least 24 hours in advance of the meeting, program, or
service.
5 February 12, 2024
Materials submitted after distribution of the agenda packet are available for public inspection
at www.CityofPaloAlto.org/agendas.
City Council
Staff Report
From: City Manager
Report Type: STUDY SESSION
Lead Department: Utilities
Meeting Date: February 12, 2024
Staff Report:2311-2211
TITLE
Reliability and Resiliency Strategic Plan for the City’s Electric Utility
RECOMMENDATION
This is a study session to review the draft Reliability and Resiliency Strategic Plan (RRSP) that has
been recommended for approval by staff and the Utilities Advisory Commission. The RRSP will
return for Council approval at a later date.
EXECUTIVE SUMMARY
The RRSP is a work item in the 2023-2025 Sustainability and Climate Action Plan (S/CAP) Work
Plan. The RRSP is intended to address the need for a reliable, well maintained electric system
with enhanced reliability to support an electrified community and a desire among some
residential community members for ways to maintain some level of electric supply during
outages, particularly with an electrified home. The proposed RRSP is provided in Attachment A
and incorporates the input previously provided by the UAC. Attachment B provides the progress
update on RRSP Strategies as of December 2023 and incorporates input previously provided by
the UAC.
The six strategies of the RRSP are as follows:
•Strategy 1: Replace and modernize electric distribution infrastructure
•Strategy 2: Implement operational practices to improve reliability and manage outages
effectively
•Strategy 3: Integrate and ease adoption of flexible and efficient technologies and
strategies
•Strategy 4: Evaluate the benefits of flexible and resiliency technologies and efficient
electrification strategies to the utility and community
•Strategy 5: Evaluate the resource needs to promote the adoption of various flexible
demand reduction and resiliency solutions and efficient electrification strategies.
•Strategy 6: Implement any utility-driven programs identified in Strategy 5 that are chosen
by the City Council
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The Council Climate Action Ad Hoc Committee will review the RRSP at their February 2, 2024
meeting. Staff will incorporate any Committee feedback and/or recommendation as well as any
Council feedback from the study session into the final document before returning for Council
approval in March.
BACKGROUND
1 UAC feedback can be found in the meeting minutes and is summarized
below.2 Both are available online at:
DISCUSSION
•Reliability: how frequently the system experiences outages,
•Modernization: how the system will be upgraded to integrate and effectively utilize new
and existing flexible technologies like solar with batteries or vehicle to grid technology,
•Capacity: the capacity of the system to handle electrification, and
•Resiliency: the system’s ability to minimize the consequences of a major event, recover
quickly, and the role of the utility in helping individual customers maintain service during
outages.
1 https://www.cityofpaloalto.org/files/assets/public/v/3/agendas-minutes-reports/agendas-minutes/utilities-
advisory-commission/archived-agenda-and-minutes/agendas-and-minutes-2023/12-dec-2023/12-06-2023-packet-
v2.pdf#page=129
2 https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/agendas-minutes/utilities-
advisory-commission/archived-agenda-and-minutes/agendas-and-minutes-2023/12-dec-2023/12-06-2023-
approved-uac-minutes.pdf
Item 1
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not give high marks on how outages were communicated. And very few customers would
confidently state whether Palo Alto was ready to manage a major emergency, unlike at other
utilities, where customers generally had confidence their utility was prepared.
3 (which represents just
the San Francisco Bay Area Peninsula between San Jose and San Francisco, the area Palo Alto is
in), and national data by quartile.4 SAIDI represents the amount of time each customer
experienced an outage on average.5 Both PG&E and the City benefit from the Bay Area's good
weather when comparing to the national average, but the City has fewer outages than PG&E.
The City is typically in the first (best) quartile nationally, while PG&E’s Peninsula Division is
sometimes in the 2nd quartile and worse in some years. The City did see some increased outage
activity for 2018/2019 and 2022/2023 that may have impacted customer perceptions. Some of
this can likely be attributed to major events like storms, but some of it is likely due to aging
infrastructure and challenges in recruiting and retaining staff.
Chart 1: Outage Performance (SAIDI) for City of Palo Alto and Other Utilities
3 Source: Pacific Gas and Electric 2022 and 2017 Annual Electric Reliability Reports to the California Public Utilities
Commission: https://www.cpuc.ca.gov/industries-and-topics/electrical-energy/infrastructure/electric-
reliability/electric-system-reliability-annual-reports
4 SAIDI can be reported with major events like storms included or excluded. The City reports SAIDI including major
events, and the PG&E Peninsula Division and national data reported here also include major events.
5 SAIDI is calculated as the total amount of outage time multiplied by the total number of customers affected
divided by the total number of utility customers. Not every customer will experience an outage each year, and
those affected may experience more or less outage time on an individual basis than the number reflected in the
SAIDI index.
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Various factors affect reliability. Table 1, below, shows some of these factors and how the RRSP
tasks address each one.
Table 1: Factors that Impact Perceptions of Reliability
Factor How Addressed in RRSP
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was designed for one way power flow from large central generators to homes and businesses.
Adding high penetrations of technologies like solar and batteries that can feed the grid instead
of just consume from it can cause voltage drops or even conditions when power is flowing the
opposite direction. Voltage drops can cause flickering lights and issues with electrical equipment,
while reverse flows can be a serious issue because existing grid protection devices like fuses or
voltage control systems are only designed to work when power is flowing one way, so two-way
flow can create dangerous conditions. A high enough reverse power flow can even overload the
capacity of transformers or power lines.
Table 2: Modernization Issues and Opportunities
Issues and Opportunities How Addressed in RRSP
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technologies can also provide benefits in that role as well. Strategies 4, 5, and 6, discussed below,
address these potential programs.
Table 3: Capacity-Related RRSP Tasks
Tasks How Addressed in RRSP
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Resiliency
Table 3: Resiliency-Related RRSP Tasks
Tasks How Addressed in RRSP
COMMISSION RECOMMENDATION
•Use words like “promote” or “encourage” in Strategy 3, Actions 3 and 4 rather than
“communicate”
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•Where the word “community” is used, specify whether the residential or business
community (or both) is being referred to
•In Strategy 6, change “chosen by the community” to “chosen by the Council”
•Clarify the intent of Strategies 3 and 4 to be clear why Strategy 3, which involves
promotion and implementation of certain technologies, proceeds before Strategy 4,
which involves quantifying the benefit of those technologies
•Status updates should include timelines
UAC members had other feedback that was not incorporated directly in the RRSP:
•The implementation of the resiliency aspects of the plan should be coordinated with the
office of emergency services
•Staff should seek community input on resiliency projects as part of the process of
providing Council a list of potential utility-driven resiliency programs for consideration
following completion of the analyses in Strategy 5.
•Consider using mailers as a way to promote utility resources, programs, and practices.
•Specify in the resources section of the report whether funding is already available or
needs additional funding; when reporting on progress of implementing RRSP specify if
implementation is on schedule and within allocated budgets.
The UAC unanimously (7-0) approved staff’s recommendation to recommend to the City
Council the adoption of the RRSP, with modifications discussed by the Commission.
FISCAL/RESOURCE IMPACT
The staffing and consulting resources needed to implement Strategies 1 through 5 are already
in place (though some longer-term CIP projects will need future budget approvals, like grid
modernization, which will require additional budget approvals for later year spending, as will
yet-to-be-defined CIP projects, like the second transmission line). Additional resources would
likely be needed to implement Strategy 6 depending which customer resiliency programs
Council chooses to approve.
Strategy 1: Replace and modernize electric distribution infrastructure: Implementation of this
strategy has already been budgeted as CIP for Grid Modernization. Cost is estimated at $200 to
$300 million and would require 5 to 8 staff over the seven-year period. This estimate includes
replacement of aging infrastructure and to increase capacity of the system to accommodate
additional loads projected as a result of electrification. The cost of the second transmission line
has not been estimated.
Strategy 2: Implement operational practices to improve reliability and manage outages
effectively: The new utility outage management system became operational in September 2023
and cost $630,000, including five years of annual maintenance. Ongoing 0.25 staffing is required
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to maintain the system. Other activities under this strategy are operationalized and would not
require any additional resources.
STAKEHOLDER ENGAGEMENT
•Two public meetings in August 2018 and November 2019 to seek community input on utility
resiliency framework. The engagement resulted in the development of a vision, set of goals
and nine projects to enhance utility resiliency – these aspects were discussed with the UAC
in March 2020, and has since been incorporated into the CPAU’s on-going work plans.
•Discussion of these topics with the S/CAP Working Group 2022-23
•Addition of topic to 2023-2025 S/CAP Work Plan, which was discussed with S/CAP Working
Group and S/CAP Committee, then adopted by Council June 6, 2023 (Report #:2303-1158)
•Discussions with the UAC on a variety of reliability and resiliency topics over the past three
years, 2021-23: OMS updates, Wildfire Mitigation Plan, Workforce, etc.
•Analysis of the Impact of Decarbonization on the Resiliency of Single Family Homes in Palo
Alto was presented to the UAC November 2021
•Analysis of Costs and Reliability of Different Back-up Electricity Technologies presented to
the UAC in December 2022.
•Strategic Plan discussions w/ UAC (which include resiliency topics)
•Electric Distribution Infrastructure Modernization Update provided to the UAC in June 2023
•Discussion of Reliability and Resiliency Strategic Plan Policy Guidelines with the UAC in
September 2023
Item 1
Item 1 Staff Report
Item 1: Staff Report Pg. 9 Packet Pg. 14 of 428
Progress in implementing the RRSP will be reported to the UAC periodically as progress is made
in implementing projects contemplated under the plan.
ENVIRONMENTAL REVIEW
ATTACHMENTS
AUTHOR/TITLE:
Item 1
Item 1 Staff Report
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Attachment A: Reliability & Resiliency Strategic Plan – Draft for Discussion/Approval
(Note that many of the actions below are also part of other documents like the Utilities Strategic Plan)
Strategy 1: Replace and modernize electric distribution infrastructure
To avoid outages the utility will replace aging infrastructure, make sure new technologies can be easily
integrated into the distribution system, increase the interconnectedness of the electric system, and
ensure the utility has the capacity to complete its maintenance and investment needs. Infrastructure
investment to reduce wildfire risk will also reduce outages.
S1, Action 1: Replace aging infrastructure
Large amounts of the utility’s infrastructure are aging and needs replacement. The utility will replace much
of this infrastructure over a seven-year grid modernization effort while simultaneously addressing the
capacity issues in Action 2.
S1, Action 2: Upgrade capacity to accommodate new loads
The utility will invest in new capacity to accommodate new loads created by the electrification of vehicles
and buildings.
S1, Action 3: Improved switching to improve system flexibility, efficiency, and reliability
The utility will construct additional distribution feeder circuit ties and switches to make the electric
distribution system more interconnected to reduce the impact of outages, and enable more flexibility in
configuring power flows to more effectively integrate solar, storage, and other new technologies and to
reduce system losses.
S1, Action 4: Second transmission connection
The utility will pursue a second interconnection to PG&E’s transmission system to reduce the chance of a
single incident resulting in the loss of service to the entire community.
S1, Action 5: Foothills undergrounding
The utility will underground lines in the Foothills to reduce the risk of wildfire liability and minimize the
need for forced outages during windy high fire risk days to avoid the risk of electric lines being blown into
trees and starting wildfires.
Strategy 2: Implement operational practices to improve reliability and manage outages
effectively
The utility will reduce operational risks that lead to outages by ensuring key positions are filled, reducing
outage risks caused by vegetation, and communicating effectively during outages to give residents the
information they need to manage the impacts of outages.
S2, Action 1: Strengthen the workforce
The utility will recruit, train and retain line-workers, system operators, engineers, inspectors to maintain
system and respond to outages effectively and, when there are staff vacancies, contract with third-party
contractors to supplement staff to keep up with regular utility operations, investment, and maintenance.
Item 1
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Reliability and Resiliency
Strategic Plan
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S2, Action 2: Employ best maintenance practices for wildfire protection
The utility will follow the practices in its Wildfire Mitigation Plan to reduce wildfire risk and the attendant
health and safety, liability, and outage risks.
The City will communicate with residents effectively about outages using its newly upgraded outage
management system.
Strategy 3: Integrate and ease adoption of flexible and efficient technologies and strategies
Many technologies are being currently added to the electric system that are capable of charging and
discharging, generating electricity, or flexing their electric use by time period. Technologies include
rooftop solar, home batteries, vehicle to home and vehicle to grid systems, and grid-responsive home
equipment. These technologies can also create challenges for the distribution system at high
penetrations, resulting in voltage issue, failures in system protection, or other issues because the system
is not designed for them. But they can also create benefits when used well, reducing the cost of electricity,
reducing emissions, reducing strain on the local distribution system, and creating home resiliency. The
utility intends to facilitate the adoption of these technologies.
This strategy is related to lowerintended to lower the barriers for these technologies and promoting their
voluntary adoption even before any utility incentive or assistance programs are established (utility
incentive or assistance programs will be evaluated in Strategies 4 and 5). Barrier reduction and Eeffective
grid integration are a first step toward facilitating these technologies and realizing their benefitswill make
the system operate more efficiently, especially when paired with promotion of best practices for installing
and operating them in an efficient manner.
The utility will complete an evaluation of how to configure the electric system to accommodate high
penetrations of solar, batteries, and other technologies and integrate the findings of this evaluation into
the grid modernization study.
The utility to establish clear utility rules and policies on the installation of efficient electrification
technologies (e.g. low-wattage EV chargers, circuit pausers, smart panels, grid-responsive equipment and
vehicle chargers) and will work with other City departments to establish clear permitting guidelines.
The utility will partner with the City’s Sustainability and Climate Action Plan (S/CAP) team and other City
departments to communicate and encouragepromote efficient electrification strategies to residents,
particularly those doing construction or renovation projects, and incorporate them into electrification
programs where feasible.
Item 1
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Reliability and Resiliency
Strategic Plan
Item 1: Staff Report Pg. 12 Packet Pg. 17 of 428
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S3, Action 4: Promote and Communicate how to usePromote the use of flexible technologies in a
grid-friendly way
The utility will promote energy use communicduring ate the times of day when it energy use results in is
lowest emissions and is most grid-friendly, and will send price signals via time of use rates once advanced
metering infrastructure is in place
Strategy 4: Evaluate the benefits of flexible and and resiliency efficient technologies and
efficient electrification strategies to the utility and community
The utility will value the benefits of flexible and resiliency technologies (such as solar + batteries, vehicle
to grid, and grid-responsive water heaters and other equipment) to the utility’s supply and distribution
costs and estimate the value of to the community of the resilience that some of these technologies can
provide, with the results supporting an evaluation of the utility’s potential role in facilitating or promoting
these technologies.
The utility will evaluate the electric supply cost benefits of outreach, education, and time of use rates to
encourage the shifting of energy use to times of day when prices and emissions are lower and the grid
faces fewer constraints, and will evaluate the benefits of strategies like automated demand response
programs in enhancing customer participation in load shifting.
The utility will attempt to value the utility benefit to electric distribution costs and capacity of outreach,
education, and time of use rates to encourage the use of flexible technologies to shift energy use to other
times of day, and will also explore the availability and cost/benefit of technologies that could automate
the operation of these flexible technologies to be responsive at the transformer level. These valuation
exercises are complex, so the utility will seek partners (e.g. with SLAC’s GISMO Lab) or consultants to
complete this action, and will not proceed unless this action can be completed without slowing the grid
modernization efforts described in Strategy 1, Actions 1, 2, and 3
The utility will attempt to value of extra resiliency for the community to support program design.
The utility will estimate the cost of various community resiliency approaches such as microgrids and
compare them to the value of resiliency estimated in Strategy 4, Action 3 above.
Strategy 5: Evaluate the resource needs to promote the adoption of for various flexible
demand reduction and resiliency solutions and efficient electrification strategiessprograms
Based on the cost and value of various flexible demand reduction and resiliency solutions investigated in
Strategy 4 the utility will develop outlines of potential programs to facilitate and promote the use of
flexible technologies to reduce supply and distribution costs, optimize the use of distribution capacity,
and enhance community resiliency. The goal of this strategy is to characterize and estimate resource
needs for the potential program approaches described below and to provide policy choices to the Utilities
Advisory Commission and Council consideration.
Item 1
Attachment A - Draft
Reliability and Resiliency
Strategic Plan
Item 1: Staff Report Pg. 13 Packet Pg. 18 of 428
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Strategy 5, Action 1: Evaluate utility-driven programs to enhance resiliency and lower the demand
on the grid
Evaluate possible utility programs to help community members install grid-responsive equipment, solar,
storage, and/or vehicle to home or vehicle to grid solutions. Program approaches could include, but are
not limited to, incentives, technical assistance, power purchase agreements or feed-in tariffs, direct
installation and possibly ownership of equipment, or public-private partnerships with an aggregator.
Types of locations to investigate include single-family homes, multi-family buildings, at small and medium
businesses, or in larger commercial facilities in Palo Alto.
The utility will consider how the programs above may need to be adjusted to address the needs of
customers with special needs (e.g. medical needs) or low-income customers.
The utility will evaluate how the programs in Action 1 could be adjusted to provide community emergency
resources at community facilities or via public-private partnerships.
The utility will evaluate other potential approaches to providing community resiliency such as mobile
battery storage or neighborhood-level microgrids.
Strategy 6: Implement any utility-driven programs identified in Strategy 5 that are chosen by
the community and City Council
The utility will implement strategies identified in Strategy 5 as directed by Council
Item 1
Attachment A - Draft
Reliability and Resiliency
Strategic Plan
Item 1: Staff Report Pg. 14 Packet Pg. 19 of 428
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Attachment B: Reliability & Resiliency Strategic Plan – Progress Update February 2024
Strategy/Action Status
Strategy 1: Replace and Modernize Infrastructure
1.1 Replace aging infrastructure
1.2 Upgrade capacity to accommodate new loads
1.3 Improved feeder switching capabilities
These goals will be achieved through the City’s grid modernization project.
An electric engineering study was completed identifying upgrades needed
through the distribution system, upgrading line transformer capacity,
feeder capacity, increasing the number of switches and connections on the
system between feeders and substations, and upgrading substation
equipment. The program has the following timeline:
•Upgrade transformer and feeder capacity in the overhead sections
of the system (which represent over 90% of single-family
neighborhoods) by the end of 2027. Upgrade underground sections
by 2030.
•Add switches, connections, and upgrade substations by 2030.
Construction on the first modernization project is starting in Q2 2024 in a
1200-home neighborhood bounded by Louis, Amarillo, 101, and
Embarcadero. The modernization projects will be coordinated with fiber to
the premise construction.
1.4 Second transmission connection Staff, with a consultant help continues to work with the CAISO and PG&E to
build a second transmission line to the Adobe Creek Substation, from
Moffett field, but no definitive progress has been made to date.
1.5 Foothills undergrounding A key wildfire mitigation activity is undergrounding eleven miles of electric
lines in the Foothills area. This iterative project consists of multiple phases
and is expected to be complete in 2025. CPAU already installed two of four
required substructures and is designing the next two. The first two phases
were completed in September 2023.
Item 1
Attachment B - December 2023
Status Update on Reliability and
Resiliency Strategic Plan
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Strategy 2: Operational Strategies to Improve Reliability and Manage Outages Effectively
2.1 Strengthen the workforce Concerted efforts are currently underway to recruitment, train, and retain
line-workers, system operators, engineers, inspectors to maintain system
and respond to outages effectively. Staff have also contracted with third-
party contractors to supplement staff to undertake emergency response,
maintenance, and capital improvement projects.
2.2 Wildfire protection maintenance practices Staff regularly updates its Wildfire Mitigation Protection Plan to protect
power lines in the Foothills, and is exploring innovative software to make
vegetation management more efficient.
2.3 Communicate effectively during outages In September 2023 CPAU implemented and operationalize a new OMS
system. The new OMS will also allow CPAU to more quickly detect and
respond to power outages and provide customers with timely notifications
and updates.
Strategy 3: Effectively Integrate and Ease Adoption of New Technologies
3.1 Configure the distribution system to
accommodate high penetrations of solar,
batteries, and other technologies
Staff has completed an evaluation of the distribution improvements needed
to accommodate high penetrations of solar and storage and is currently
evaluating whether these same improvements will also accommodate
vehicle to grid technologies, smart panels, and flexible loads. Expected
completion: Q1 2024
3.2 Review, communicate, and streamline
permitting and other regulatory rules for efficient
and flexible electrification technologies
3.3 Communicate how to electrify efficiently
3.4 Communicate how to use technologies in a
grid-friendly way
Staff is conducting an inter-departmental internal review of various
technologies to establish clear rules and guidelines for implementation of
these technologies, after which it will begin developing resources for the
community to use and outreach to raise awareness. Time of use rates and a
transition plan are currently being developed in parallel with the City’s
rollout of advanced metering infrastructure. Expected completion: Q2 2024
Strategy 4: Value the benefits of flexible technologies to the utility and community
4.1 Value the utility benefit of flexible technologies
on electric supply costs
Staff is developing a request for proposals for a consultant to perform these
analyses, as well as the analysis of Action 4.4 and the analyses in Strategy 5.
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Status Update on Reliability and
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4.2 Value the utility benefit of flexible technologies
on electric distribution costs and capacity
Staff expects to be able to bring a consultant contract to Council by August
2024, with study completion tentative planned by Q1 2025.
4.3: Explore estimating the value of resiliency for
the community
Staff is in talks with its electric engineering consultant and a potential
academic partner about partnering to complete this analysis. The tentative
completion date is Q1 2025.
4.4: Estimate the cost of various community
resiliency approaches
See status update for 4.1 and 4.2, above.
Strategy 5: Evaluate the resource needs for various demand reduction and resiliency programs
5.1: Evaluate utility-driven programs to enhance
resiliency and lower the demand on the grid
5.2 Evaluate equity-based and need-based
versions of the programs
5.3: Evaluate community-based versions of the
programs
5.4: Evaluate other resiliency approaches
Staff is developing a request for proposals for a consultant to perform these
analyses, as well as the analysis of Actions 4.1, 4.2, and 4.4, above. The
tentative completion date for this study is Q1 2025.
Strategy 6: Implement any demand reduction or resiliency programs chosen by the community
No actions planned until Strategies 4 and 5 are completed and policy direction is received from Council
Item 1
Attachment B - December 2023
Status Update on Reliability and
Resiliency Strategic Plan
Item 1: Staff Report Pg. 17 Packet Pg. 22 of 428
City Council
Staff Report
Report Type: CONSENT CALENDAR
Lead Department: City Clerk
Meeting Date: February 12, 2024
Report #:2401-2552
TITLE
Approval of Minutes from January 22, 2024 and January 29, 2024 Meetings
RECOMMENDATION
That the minutes be reviewed and approved.
ATTACHMENTS
Attachment A: January 22, 2024 Draft Action Minutes
Attachment B: January 29, 2024 Draft Action Minutes
APPROVED BY:
Mahealani Ah Yun
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CITY COUNCIL
DRAFT ACTION MINUTES
Page 1 of 5
Regular Meeting
January 22, 2024
The City Council of the City of Palo Alto met on this date in the Council Chambers and by virtual
teleconference at 5:30 P.M.
Present In Person: Burt, Kou, Lauing, Lythcott-Haims, Stone, Tanaka, Veenker
Present Remotely:
Absent:
Consent Calendar
Council Member Kou registered a no vote on Agenda Item Number 4, 6.
Council Member Burt, Lythcott-Haims, Veenker requested to Pull Agenda Item Number 3.
MOTION: Vice Mayor Lauing moved, seconded by Council Member Veenker to approve Agenda
Item Numbers 1-9, and pull Agenda Item Number 3 off of Consent.
MOTION PASSED ITEMS 1-2, 5, 7-8: 7-0
MOTION PASSED ITEMS 4, 6: 6-1, Kou no
1. Approval of Minutes from January 8, 2024 Meeting
2. Approval of Purchase Order With Siemens Inc. in the Amount of $489,527 for FY 2024 to
Purchase Sixteen (16) 12KV Circuit Breakers for Hanover and Hansen Way Substations.
CEQA Status: Exempt under CEQA Guidelines Section 15302 (Replacement of Existing
Structures)
3. Adopt a Park Dedication Ordinance for the Tower Well site, 0.19 acres of land (8,437
square feet) at 201 Alma Street and approve the proposed name “Tower Well Park” as
Recommended by the Parks and Recreation Commission. CEQA status - not a project.
4. Adoption of an Urgency Ordinance and an Ordinance Amending Palo Alto Municipal Code
Title 18 (Zoning) Chapters 18.14 (Housing Incentives), 18.76 (Permits and Approvals), and
18.77 (Processing of Permits and Approvals) to Implement Housing Element Program 1.3
Creating By-Right Zoning Approval for Specific Housing Element Inventory Sites. CEQA
Item 2
Attachment A - Jan 22,
2024 Draft Action
Minutes
Item 2: Staff Report Pg. 2 Packet Pg. 24 of 428
DRAFT ACTION MINUTES
Page 2 of 5
City Council Regular Meeting
Draft Action Minutes: 01/22/2024
Status: An Addendum to the City’s Comprehensive Plan Environmental Impact Report was
Prepared for the 2023-2031 Housing Element.
5. Adoption of an Ordinance Authorizing the Improvements to the Palo Alto Baylands as Part
of the Horizontal Levee Pilot Project and Approval of a Cooperative Agreement with the
Association of Bay Area Governments to Construct the Horizontal Levee Pilot Project
(WQ-22001); CEQA – exempt under Section 15133
6. QUASI-JUDICIAL. 949 Scott Street [22PLN-00410]: Request for City Council Hearing on the
Director's Decision to Approve a Variance application to Allow a New Single-Story, Single-
Family Home with a Basement to Encroach into the Front, Side, and Rear Setbacks and
Deviate from Standards for Below Grade Patio Side and Rear Setbacks, and Number of
Parking Spaces. Zoning District: R-2. Environmental Assessment: Exempt from the
California Environmental Quality Act per Section 15303.
7. QUASI-JUDICIAL. 420 Acacia [23PLN-00059]: Request for Approval of a Vesting Tentative
Map to Allow for a Condominium Subdivision to Create 16 Units on a Single 35,573 Square
Foot Parcel. The Subdivision map Would Facilitate Construction of the Previously
Approved 33,833 Square Foot Mixed-use Development Project (23PLN-00058).
Environmental Assessment: Exempt from the Provisions of the California Environmental
Quality Act in Accordance with CEQA Guidelines Section 15332 (In-fill Development) and
15315 (Minor land Divisions). Zoning District: Split Zoning Designation of RM-30 and R-1
(Multi-Family and Single-Family Residential).
8. Approval of the Office of the City Auditor's Wastewater Treatment Plant Agreement Audit
Report as Recommended by Policy & Services Committee (CEQA Status - Not a Project)
9. Approval of Office of City Auditor Risk Assessment and Audit Plan (CEQA Status - Not a
Project)
Action Items
10. Approval of an Employment Agreement and Approval of Resolution to Appoint Mahealani
Ah Yun to the Position of City Clerk at an Annual Salary of $165,000. CEQA Status – Not a
Project
MOTION: Council Member Burt moved, seconded by Council Member Lythcott-Haims to
approve of an employment agreement and adopt a resolution to appoint Mahealani Ah Yun to
the position of City Clerk at an annual salary of $165,000.
MOTION PASSED: 7-0
Item 2
Attachment A - Jan 22,
2024 Draft Action
Minutes
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DRAFT ACTION MINUTES
Page 3 of 5
City Council Regular Meeting
Draft Action Minutes: 01/22/2024
11. Adoption of a Resolution and Approving an Easement Relocation Agreement Relocating
and Vacating a 25 Foot Public Service Easement at the Castilleja School at 1263 Emerson
Street and 220 Embarcadero Road (also commonly known as 1310 Bryant Street),
Assessor Parcel Numbers 124-12-033 & 124-12-034; CEQA status – categorically exempt.
MOTION: Council Member Lythcott-Haims moved, seconded by Council Member Veenker to:
1. Approve and authorize the City Manager or designee to execute the Easement Relocation
Agreement relocating a public service easement on the Castilleja School located at 1263
Emerson Street and 220 Embarcadero Road (also commonly known as 1310 Bryant
Street); and
2. Adopt a resolution summarily vacating a public service easement on the Castilleja School
located at 1263 Emerson Street and 220 Embarcadero Road (also commonly known as
1310 Bryant Street) after the relocated easement has been recorded.
MOTION PASSED: 6-1, Kou no
12. Review and Accept the FY 2025 - FY 2034 Long Range Financial Forecast (LRFF) and FY
2025 Budget Development Guidelines as Recommended by the Finance Committee, CEQA
Status – Not a Project
MOTION: Vice Mayor Lauing moved, seconded by Council Member Kou to accept the General
Fund Long Range Financial Forecast (LRFF) for Fiscal Year 2025-2034 (Attachment I) and the FY
2025 annual Budget Development Guidelines (Attachment II) and direct staff to use this forecast
as the starting point for the initiation of the FY 2025 budget process.
MOTION PASSED: 6-1, Tanaka no
13. Update regarding State and Federal Legislation and Approval of the Annual Legislative
Guidelines and Legislative Platform as Recommended by the Policy & Service Committee.
CEQA Status – Not a Project
MOTION: Council Member Burt moved, seconded by Vice Mayor Lauing to approve the 2024
Federal and State Legislative Guidelines / Legislative Platform (Attachment A) and accept a
legislative update with the following changes (italics/bold are new text):
1. Update the foundational Principles #3 first sentence to read as follows: "Preserve and
Protect the City's Powers, duties, and discretion to enact and engage in local processes
and policy making concerning local affairs and oppose efforts and legislation from the
state and regional bodies that preempt local authority and do not align with City
Item 2
Attachment A - Jan 22,
2024 Draft Action
Minutes
Item 2: Staff Report Pg. 4 Packet Pg. 26 of 428
DRAFT ACTION MINUTES
Page 4 of 5
City Council Regular Meeting
Draft Action Minutes: 01/22/2024
priorities. Advocate for longer lead times for implementation of new legislation that
adversely impacts Palo Alto".
MOTION PASSED: 6-1, Kou no
AMENDMENT: Council Member Tanaka, seconded by Council Member Lythcott-Haims to update
bullet #7 from Housing section to read as follows:
“Supports the provision of greater lead times for Palo Alto to implement state legislation when
necessary to comply with new land use and housing requirements within the local context”.
AMENDMENT PASSED: 5-2, Kou, Lauing no
Adjournment: The meeting was adjourned at 10:50 P.M.
Item 2
Attachment A - Jan 22,
2024 Draft Action
Minutes
Item 2: Staff Report Pg. 5 Packet Pg. 27 of 428
DRAFT ACTION MINUTES
Page 5 of 5
City Council Regular Meeting
Draft Action Minutes: 01/22/2024
ATTEST: APPROVED:
____________________ ____________________
City Clerk Mayor
NOTE: Action minutes are prepared in accordance with Palo Alto Municipal Code (PAMC)
2.04.160(a) and (b). Summary minutes (sense) are prepared in accordance with PAMC Section
2.04.160(c). Beginning in January 2018, in accordance with Ordinance No. 5423, the City Council
found action minutes and the video/audio recordings of Council proceedings to be the official
records of both Council and committee proceedings. These recordings are available on the City’s
website.
Item 2
Attachment A - Jan 22,
2024 Draft Action
Minutes
Item 2: Staff Report Pg. 6 Packet Pg. 28 of 428
CITY COUNCIL
DRAFT ACTION MINUTES
Page 1 of 3
Special Meeting
January 29, 2024
The City Council of the City of Palo Alto met on this date in the Mitchell Park Community Center,
El Palo Alto Room and by virtual teleconference at 5:30 P.M.
Present In Person: Burt, Kou, Lauing, Lythcott-Haims, Stone, Tanaka, Veenker
Present Remotely:
Absent:
2024 ANNUAL COUNCIL RETREAT PROGRAM
1. Roll Call and Welcome from Mayor Stone Presentation
2. City Council Retreat: Discussion and Selection of 2024 City Council Priorities
2A. Discuss 2023 City Council Priorities & Objectives
2B. Discuss Key Inputs for Priority Setting: Community and Councilmember Feedback
2C. Selection of 2024 Council Priorities & Discussion on Strategies to Achieve Priorities
MOTION: Mayor Stone moved, seconded by Council Member Veenker to modify Community
Health & Safety to “Community Health, Safety, Wellness, & Belonging”.
MOTION PASSED: 5-2, Lauing, Kou no
MOTION: Council Member Veenker moved, seconded by Council Member Lythcott-Haims to
approve the 2024 Council Priorities as follows:
• Community Health, Safety, Wellness, & Belonging
• Economic Development & Transition
• Climate Change & Natural Environment – Protection & Adaption
• Housing for Social & Economic Balance
Item 2
Attachment B - Jan 29,
2024 Draft Action
Minutes
Item 2: Staff Report Pg. 7 Packet Pg. 29 of 428
DRAFT ACTION MINUTES
Page 2 of 3
Sp. City Council Meeting
Draft Action Minutes: 01/29/2024
MOTION PASSED: 7-0
2D. Discuss City Council Norms for 2024
2E. Retreat Debrief, Take Away and Next Steps
Adjournment: The meeting was adjourned at 10:15 P.M.
Item 2
Attachment B - Jan 29,
2024 Draft Action
Minutes
Item 2: Staff Report Pg. 8 Packet Pg. 30 of 428
DRAFT ACTION MINUTES
Page 3 of 3
Sp. City Council Meeting
Draft Action Minutes: 01/29/2024
ATTEST: APPROVED:
____________________ ____________________
City Clerk Mayor
NOTE: Action minutes are prepared in accordance with Palo Alto Municipal Code (PAMC)
2.04.160(a) and (b). Summary minutes (sense) are prepared in accordance with PAMC Section
2.04.160(c). Beginning in January 2018, in accordance with Ordinance No. 5423, the City Council
found action minutes and the video/audio recordings of Council proceedings to be the official
records of both Council and committee proceedings. These recordings are available on the City’s
website.
Item 2
Attachment B - Jan 29,
2024 Draft Action
Minutes
Item 2: Staff Report Pg. 9 Packet Pg. 31 of 428
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: February 12, 2024
Report #: 2311-2257
TITLE
Approval of Contract Number C24187805 With Carollo Engineers, Inc. in the Total Amount Not-
to-Exceed $1,628,326 for Planning and Preliminary Design of a Headworks Facility at the
Regional Water Quality Control Plant, funded by Wastewater Treatment Enterprise Fund
Capital Improvement Program Project WQ-16002; CEQA Status – Not a “Project.”
RECOMMENDATION
Staff recommends that Council approve and authorize the City Manager or their designee to
execute Contract Number C24187805 with Carollo Engineers, Inc. in an amount not-to-exceed
$1,628,326 for planning and preliminary design of a Headworks Facility at the Regional Water
Quality Control Plant, funded by Wastewater Treatment Enterprise Fund Capital Improvement
Program Project WQ-16002. The contract amount includes $1,480,296 for basic services and
$148,030 for additional services. The contract term is through June 30, 2032.
EXECUTIVE SUMMARY
The Regional Water Quality Control Plant requires a new Headworks Facility to replace aging
raw sewage pumping equipment as well as preliminary treatment equipment that removes
debris, rags, and grit from influent prior to conveyance to primary treatment facilities. Approval
of Contract Number C24187805 with Carollo Engineers, Inc. will initiate planning and
preliminary design that will allow for subsequent detailed design and eventual construction of a
new Headworks Facility.
BACKGROUND
The Regional Water Quality Control Plant (RWQCP, Plant) was originally constructed in 1934
and has undergone several expansions and upgrades. Preliminary treatment of the Plant’s
influent flows includes the removal of debris, rags, and grit via grinders, barscreens, and a
cyclone classifier. Wastewater is pumped to the influent channel of four primary sedimentation
tanks for further treatment.
The plant’s original raw sewage pumping plant consisted of only pumps. It was replaced in 1956
by another pumping plant (named Old Pumping Plant now) to add new pumps and grinders to
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grind rags and large debris into smaller pieces that subsequently get removed at the primary
sedimentation tanks. In 1972, another pumping plant (named New Pumping Plant) was
constructed to add larger capacity pumps and equipment (i.e., barscreens) that can remove
rags and large debris and thereby improve the performance of the primary sedimentation tanks
and sludge pumps. To further reduce the loadings to the primary sedimentation tanks and
protect downstream equipment, mechanical equipment (i.e., a cyclone classifier) was installed
in 1988 to facilitate the removal of abrasive grit and sand from the primary influent channel. As
the equipment continued to age, the Old Pumping Plant was rehabilitated in 2018 to
supplement pumping capacity during maintenance events and high flow situations. Both the
1956 and 1972 raw sewage pumping plants remain in service to accommodate a larger regional
community as well as wet weather influent flows of up to 80 million gallons per day. Because of
age and obsolete technology, the existing two pumping plants, barscreens, and grit removal
system do not remove as much screenings and grit as could be achieved with a newer system.
During the winter storms in January 2023, large amounts of grit damaged sludge collection
equipment in the primary sedimentation tanks, reinforcing the need for an upgrade to the
aging equipment.
1 which was accepted by the Council in 2012.2
ANALYSIS
•verify the plant’s influent flows and solids characteristics;
•perform alternative analysis to select the appropriate pumping equipment and
technologies for solids removal and odor control;
•perform site layout alternative analysis and recommend the best layout for siting the
headworks facility;
1 Long Range Facilities Plan for the Regional Water Quality Control Plant, 2012;
https://www.cityofpaloalto.org/files/assets/public/public-works/water-quality-control-plant/lrfp-final-report-08-
2012.pdf
2 City Council, July 2, 2012; Agenda Item #1; SR #2914.
https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/reports/city-manager-reports-
cmrs/year-archive/2012/id-2914.pdf
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•perform preliminary design for the headworks facility housing new pumps, solids
removal equipment, odor control system, power distribution equipment, and other
ancillary systems. The design will include consolidation of the plant’s electrical power
feeds for the headworks facility and adjacent maintenance building and UV facility as
well as modifications to existing facilities for process unit tie-ins;
•prepare a preliminary design report documenting the basis of design;
•develop preliminary construction sequencing plan that will allow continuous plant
operation during construction with minimal interruption; and
•develop a preliminary cost estimate for construction of the headworks facility.
A request for proposals (RFP) for the project was posted on PlanetBids, the City’s eProcurement
platform, and 2,145 vendors were notified. The solicitation period was posted for 62 days; five
proposals were received. The solicitation closed on June 6, 2023.
Table 1: Summary of Request for Proposal
Proposal Description Design Services for Headworks Facility, RFP187805
Proposed Length of Project 8 Years (2024 to 2032)
Number of Vendors Notified 2,145
Number of Proposal Packages Downloaded 31
Total Days to Respond to Proposal 62
Pre-Proposal Meeting and Date Yes, Mandatory, 4/25/2023
Number of Proposals Received 5
Proposal Price Range Basic Services (Planning and Preliminary Design):
$997,880 to $2,073,444
Optional Services (First 10,000 Hours of Detailed Design):
$2,991,615 to $4,220,398
Public Link to Solicitation https://pbsystem.planetbids.com/portal/25569/bo/bo-
detail/104153#
Note: The RFP included the scope of work for planning, preliminary design, and detailed design. The costs for
optional services shown in the table above represent an estimated level of effort for the first 10,000 hours of
detailed design in 2023 dollars. The total level of effort for the detailed design can only be determined after
planning and preliminary design are completed.
The proposals were evaluated and determined to be responsive to the criteria identified in the
RFP. Two of the proposals demonstrated less headworks design experience compared to the
other three proposals, despite their lower price range. Carollo Engineers, Inc. (Carollo) was
selected because of the quality of their proposal and effectiveness of their services; the
experience of their staff, as demonstrated during their presentation; relatively higher number
of headworks projects completed to date; prior record of performance with the City; and their
ability to provide future services. Staff from the City of Sunnyvale and San Francisco Public
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Utilities Commission provided positive feedback to Public Works staff regarding Carollo’s design
of those cities’ new headworks facilities. Staff recommends that Council approve and authorize
the City Manager or their designee to execute Contract Number C24187805 (Attachment A)
with Carollo Engineers, Inc. in an amount not-to-exceed $1,628,326 including $1,480,296 for
basic services associated with planning and preliminary design (30 percent design stage) of a
new Headworks Facility and $148,030 for additional services. The total amount of $1,628,326
excludes the cost for detailed design.
FISCAL/RESOURCE IMPACT
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Agency (USEPA) administered Water Infrastructure Finance and Innovation Act (WIFIA) and the
Clean Water State Revolving Fund (CWSRF) program loans. If these lower-interest loans cannot
be obtained, staff will seek bond financing. WIFIA, CWSRF, and bond interest rates are currently
estimated at 3.9%, 1.7%, and 4.5%, respectively.
STAKEHOLDER ENGAGEMENT
ENVIRONMENTAL REVIEW
ATTACHMENTS
APPROVED BY:
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CITY OF PALO ALTO CONTRACT NO. C24187805
AGREEMENT FOR PROFESSIONAL SERVICES
BETWEEN THE CITY OF PALO ALTO AND CAROLLO ENGINEERS, INC.
This Agreement for Professional Services (this “Agreement”) is entered into as of the 12th day of February,
2024 (the “Effective Date”), by and between the CITY OF PALO ALTO, a California chartered municipal
corporation (“CITY”), and CAROLLO ENGINEERS, INC. , a California Corporation, located at 2795
Mitchell Drive, Walnut Creek, CA 94598 (“CONSULTANT”).
The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this
reference:
RECITALS
A. CITY intends to construct a new Headworks Facility (the “Project”) and desires to engage a
consultant to provide planning and preliminary design services in connection with the Project (the
“Services”, as detailed more fully in Exhibit A).
B. CONSULTANT represents that it, its employees and subconsultants, if any, possess 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, entitled “SCOPE OF SERVICES”.
NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement,
the parties agree as follows:
SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit
A in accordance with the terms and conditions contained in this Agreement. The performance of all Services
shall be to the reasonable satisfaction of CITY.
SECTION 2. TERM.
The term of this Agreement shall be from the date of its full execution through June 30, 2032
unless terminated earlier pursuant to Section 19 (Termination) 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, entitled “SCHEDULE OF PERFORMANCE”. Any
Services for which times for performance are not specified in this Agreement shall be commenced and
completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances
and direction communicated to the CONSULTANT. CITY’s agreement to extend the term or the schedule
for performance shall not preclude recovery of damages for delay if the extension is required due to the
fault of CONSULTANT.
DocuSign Envelope ID: ACBEADD7-93A4-4809-9985-4D41F46BA84B
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SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT
for performance of the Services shall be based on the compensation structure detailed in Exhibit C, entitled
“COMPENSATION,” including any reimbursable expenses specified therein, and the maximum total
compensation shall not exceed One Million Four Hundred Eighty Thousand Two Hundred Ninety-Six
Dollars ($1,480,296.00). The hourly schedule of rates, if applicable, is set out in Exhibit C-1, entitled
“SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would result in
a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY.
Optional Additional Services Provision (This provision applies only if checked and a not-to-
exceed compensation amount for Additional Services is allocated below under this Section 4.)
In addition to the not-to-exceed compensation specified above, CITY has set aside the not-to-
exceed compensation amount of One Hundred Forty-Eight Thousand Thirty Dollars
($148,030.00) for the performance of Additional Services (as defined below). The total
compensation for performance of the Services, Additional Services and any reimbursable expenses
specified in Exhibit C, shall not exceed One Million Six Hundred Twenty-Eight Thousand
Three Hundred Twenty-Six Dollars ($1,628,326.00), as detailed in Exhibit C.
“Additional Services” means 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 at
Exhibit A. CITY may elect to, but is not required to, authorize Additional Services up to the
maximum amount of compensation set forth for Additional Services in this Section 4.
CONSULTANT shall provide Additional Services only by advanced, written authorization from
CITY as detailed in this Section. Additional Services, if any, shall be authorized by CITY with a
Task Order assigned and authorized by CITY’s Project Manager, as identified in Section 13
(Project Management). Each Task Order shall be in substantially the same form as Exhibit A-1,
entitled “PROFESSIONAL SERVICES TASK ORDER”. Each Task Order shall contain a specific
scope of services, schedule of performance and maximum compensation amount, in accordance
with the provisions of this Agreement. Compensation for Additional Services shall be specified by
CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in
Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum.
To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s Project
Manager within the time specified by the Project Manager, and upon authorization by CITY
(defined as counter-signature by the CITY Project Manager), the fully executed Task Order shall
become part of this Agreement. The cumulative total compensation to CONSULTANT for all Task
Orders authorized under this Agreement shall not exceed the amount of compensation set forth for
Additional Services in this Section 4. CONSULTANT shall only be compensated for Additional
Services performed under an authorized Task Order and only up to the maximum amount of
compensation set forth for Additional Services in this Section 4. Performance of and payment for
any Additional Services are subject to all requirements and restrictions in this Agreement.
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, if applicable, an
identification of personnel who performed the Services, hours worked, hourly rates, and reimbursable
expenses), based upon Exhibit C or, as applicable, CONSULTANT’s schedule of 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 invoices shall be subject to verification by CITY. CONSULTANT shall send all
invoices to CITY’s Project Manager at the address specified in Section 13 (Project Management) below.
CITY will generally process and pay invoices within thirty (30) days of receipt of an acceptable invoice.
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SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All Services shall be performed by
CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it, its employees
and subcontractors, if any, possess 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 subcontractors, if any,
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 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, as amended from time to time. 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 is solely responsible for costs, including, but
not limited to, increases in the cost of Services, arising from or caused by CONSULTANT’s errors and
omissions, including, but not limited to, the costs of corrections such errors and omissions, any change
order markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay
in correcting the errors and omissions.
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 the CITY’s stated construction budget by ten
percent (10%) or more, CONSULTANT shall make recommendations to CITY for aligning the Project
design with the budget, incorporate CITY approved recommendations, and revise the design to meet the
Project budget.
SECTION 10. INDEPENDENT CONTRACTOR. CONSULTANT acknowledges and agrees that
CONSULTANT and any agent or employee of CONSULTANT will act as and shall be deemed at all times
to be an independent contractor and shall be wholly responsible for the manner in which CONSULTANT
performs the Services requested by CITY under this Agreement. CONSULTANT and any agent or
employee of CONSULTANT will not have employee status with CITY, nor be entitled to participate in any
plans, arrangements, or distributions by CITY pertaining to or in connection with any retirement, health or
other benefits that CITY may offer its employees. CONSULTANT will be responsible for all obligations
and payments, whether imposed by federal, state or local law, including, but not limited to, FICA, income
tax withholdings, workers’ compensation, unemployment compensation, insurance, and other similar
responsibilities related to CONSULTANT’s performance of the Services, or any agent or employee of
CONSULTANT providing same. Nothing in this Agreement shall be construed as creating an employment
or agency relationship between CITY and CONSULTANT or any agent or employee of CONSULTANT.
Any terms in this Agreement referring to direction from CITY shall be construed as providing for direction
as to policy and the result of CONSULTANT’s provision of the Services only, and not as to the means by
which such a result is obtained.
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 approval of the City Manager. Any purported assignment made without the prior written approval
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of the City Manager will be void and without effect. Subject to the foregoing, the covenants, terms,
conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors,
administrators and assignees of the parties.
SECTION 12. SUBCONTRACTING.
Option A: No Subcontractor: CONSULTANT shall not subcontract any portion of the Services to be
performed under this Agreement without the prior written authorization of the City Manager or designee.
In the event CONSULTANT does subcontract any portion of the work to be performed under this
Agreement, CONSULTANT shall be fully responsible for all acts and omissions of subcontractors.
Option B: Subcontracts Authorized: Notwithstanding Section 11 (Assignment) above, CITY
agrees that subcontractors may be used to complete the Services. The subcontractors authorized
by CITY to perform work on this Project are:
Subcontractor: Service:
Bay Area Coating Consultants, Inc. Coating Specialist
Callander Associates Landscape Architecture Design
Environmental Science Associates Environmental Assessment and Permitting
Exaro Technologies Corp. Potholing
Haley & Aldrich Geotechnical Study
JDH Corrosion Consultants, Inc. Corrosion Protection
Jensen Hughes Fire Protection
Mizutani Environmental Air Permitting
MWA Architects, Inc. Building Architecture
TJC and Associates, Inc. SCADA, Electrical and Instrumentation
Towill, Inc. Surveying
Wilson Ihrig Noise Control
CONSULTANT shall be responsible for directing the work of any subcontractors and for any
compensation due to subcontractors. CITY assumes no responsibility whatsoever concerning
compensation of subcontractors. CONSULTANT shall be fully responsible to CITY for all acts
and omissions of subcontractors. CONSULTANT shall change or add subcontractors only with
the prior written approval of the City Manager or designee.
SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Rick Chan, 2795 Mitchell
Drive, Walnut Creek, CA 94598, Telephone: 925-786-0118, Email: RChan@carollo.com. as the
CONSULTANT’s Project Manager to have supervisory responsibility for the performance, progress, and
execution of the Services and represent CONSULTANT during the day-to-day performance of the Services.
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If circumstances cause the substitution of the CONSULTANT’s Project Manager or any other of
CONSULTANT’s key personnel for any reason, the appointment of a substitute Project Manager and the
assignment of any key new or replacement personnel will be subject to the prior written approval of the
CITY’s Project Manager. CONSULTANT, at CITY’s request, shall promptly remove CONSULTANT
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 Services or a threat to the safety of persons or
property.
CITY’s Project Manager is Siew Ching Chin, Public Works Department, Environmental Services Division,
2501 Emabarcadero Way Palo Alto, CA, 94303, Telephone: 650-838-2917, Email:
siewching.chin@cityofpaloalto.org. CITY’s Project Manager will be CONSULTANT’s point of contact
with respect to performance, progress and execution of the Services. CITY may designate an alternate
Project Manager from time to time.
SECTION 14. OWNERSHIP OF MATERIALS. All work product, including without limitation, all
writings, drawings, studies, sketches, photographs, plans, reports, specifications, computations, models,
recordings, data, documents, and other materials and copyright interests developed under this Agreement,
in any form or media, 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 product
pursuant to this Agreement are vested in CITY, and CONSULTANT hereby waives and relinquishes all
claims to copyright or other intellectual property rights in favor of CITY. Neither CONSULTANT nor its
subcontractors, if any, shall make any of such work product 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 Services.
SECTION 15. AUDITS. CONSULTANT agrees to permit CITY and its authorized representatives to
audit, at any reasonable time during the term of this Agreement and for four (4) years from the date of final
payment, CONSULTANT’s records pertaining to matters covered by this Agreement, including without
limitation records demonstrating compliance with the requirements of Section 10 (Independent Contractor).
CONSULTANT further agrees to maintain and retain accurate books and records in accordance with
generally accepted accounting principles for at least four (4) years after the expiration or earlier termination
of this Agreement or the completion of any audit hereunder, whichever is later.
SECTION 16. INDEMNITY.
[Option A applies to the following design professionals pursuant to Civil Code Section 2782.8:
architects; landscape architects; registered professional engineers and licensed professional land
surveyors.] 16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify, defend
and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified
Party”) from and against any and all third party 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 attorney’s fees, experts fees, court costs and disbursements (“Claims”) to the extent that
such Claims arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of
CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether
or not it is caused in part by an Indemnified Party. CITY will reimburse CONSULTANT for the
proportionate percentage of defense costs exceeding CONSULTANT’s proportionate percentage of fault
as determined by the final judgment of a court of competent jurisdiction.
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[Option B applies to any consultant who does not qualify as a design professional as defined in
Civil Code Section 2782.8.] 16.1. To the fullest extent permitted by law, CONSULTANT shall
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 attorney’s 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 a Claim arising from the active negligence or
willful misconduct of an Indemnified Party that is not contributed to by any act of, or by any omission to
perform a duty imposed by law or agreement by, CONSULTANT, its officers, employees, agents or
contractors under this Agreement.
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. No waiver of a condition or nonperformance of an obligation under this
Agreement is effective unless it is in writing in accordance with Section 29.4 of this Agreement. No delay
or failure to require performance of any provision of this Agreement shall constitute a waiver of that
provision as to that or any other instance. Any waiver granted shall apply solely to the specific instance
expressly stated. No single or partial exercise of any right or remedy will preclude any other or further
exercise of any right or remedy.
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, entitled
“INSURANCE REQUIREMENTS”. CONSULTANT and its contractors, if any, shall obtain a policy
endorsement naming CITY as an additional insured under any general liability or automobile policy or
policies.
18.2. All insurance coverage required hereunder shall be provided through carriers with
AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact
insurance business in the State of California. Any and all contractors of CONSULTANT retained to
perform Services under this Agreement will obtain and maintain, in full force and effect during the term of
this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as
required above.
18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with
the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager
and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or
materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager
thirty (30) days’ prior written notice of the cancellation or modification. 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
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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 Chief Procurement Officer 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. If CONSULTANT fails to perform any of its material obligations under this
Agreement, in addition to all other remedies provided under this Agreement or at law, the City Manager
may terminate this Agreement sooner upon written notice of termination. Upon receipt of any notice of
suspension or termination, CONSULTANT will discontinue its performance of the Services on the effective
date in the notice of suspension or termination.
19.2. In event of suspension or termination, CONSULTANT will deliver to the City
Manager on or before the effective date in the notice of suspension or termination, any and all work product,
as detailed in Section 14 (Ownership of Materials), whether or not completed, prepared by CONSULTANT
or its contractors, if any, in the performance of this Agreement. Such work product is the property of CITY,
as detailed in Section 14 (Ownership of Materials).
19.3. In event of suspension or termination, CONSULTANT will be paid for the
Services rendered and work products delivered to CITY in accordance with the Scope of Services up to the
effective date in the 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 provided in material conformity with
this Agreement as such determination is 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, 17, 19.2, 19.3, 19.4, 20, 25, 27, 28, 29 and 30.
19.4. No payment, partial payment, acceptance, or partial acceptance by CITY will
operate as a waiver on the part of CITY of any of its rights under this Agreement, unless made in accordance
with Section 17 (Waivers).
SECTION 20. NOTICES.
All notices hereunder will be given in writing and mailed, postage prepaid, by certified
mail, addressed as follows:
To CITY: Office of the City Clerk
City of Palo Alto
Post Office Box 10250
Palo Alto, CA 94303
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With a copy to the Purchasing Manager
To CONSULTANT: Attention of the Project Manager at the address of
CONSULTANT recited on the first page of this Agreement.
CONSULTANT shall provide written notice to CITY of any change of address.
SECTION 21. CONFLICT OF INTEREST.
21.1. In executing 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 subcontractors or other persons or parties 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, as amended from time to time.
CONSULTANT agrees to notify CITY if any conflict arises.
21.3. If the CONSULTANT meets the definition of a “Consultant” as defined by the
Regulations of the Fair Political Practices Commission, CONSULTANT will file the appropriate financial
disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act of 1974, as
amended from time to time.
SECTION 22. NONDISCRIMINATION; COMPLIANCE WITH ADA.
22.1. As set forth in Palo Alto Municipal Code Section 2.30.510, as amended from time
to time, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the
employment of any person due to that person’s race, skin color, gender, gender identity, age, religion,
disability, national origin, ancestry, sexual orientation, pregnancy, genetic information or condition,
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.
22.2. CONSULTANT understands and agrees that pursuant to the Americans
Disabilities Act (“ADA”), programs, services and other activities provided by a public entity to the public,
whether directly or through a contractor or subcontractor, are required to be accessible to the disabled
public. CONSULTANT will provide the Services specified in this Agreement in a manner that complies
with the ADA and any other applicable federal, state and local disability rights laws and regulations, as
amended from time to time. CONSULTANT will not discriminate against persons with disabilities in the
provision of services, benefits or activities provided under this Agreement.
SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE
REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally Preferred
Purchasing policies which are available at CITY’s Purchasing Department, hereby incorporated by
reference and as amended from time to time. CONSULTANT shall comply with waste reduction, reuse,
recycling and disposal requirements of CITY’s Zero Waste Program. Zero Waste best practices include,
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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:
(a) All printed materials provided by CONSULTANT to CITY generated from a personal
computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education
materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper,
unless otherwise approved by 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.
(b) Goods purchased by CONSULTANT on behalf of CITY shall be purchased in accordance
with 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
Department’s office.
(c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no additional cost
to 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. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE.
CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62
(Citywide Minimum Wage), as amended from time to time. In particular, for any employee otherwise
entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within
the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum
wage set forth in Palo Alto Municipal Code Section 4.62.030 for each hour worked within the geographic
boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto
Minimum Wage Ordinance in accordance with Palo Alto Municipal Code Section 4.62.060.
SECTION 25. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the
Charter of the City of Palo Alto and the Palo Alto Municipal Code, as amended from time to time. 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 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS
CONTRACTS.
26.1. This Project is subject to prevailing wages and related requirements as a
“public works” under California Labor Code Sections 1720 et seq. and related regulations.
CONSULTANT is required to pay general prevailing wages as defined in California Labor Code
Section 1773.1 and Subchapter 3, Title 8 of the California Code of Regulations Section 16000 et seq., as
amended from time to time. Pursuant to Labor Code Section 1773, the CITY has obtained the general
prevailing rate of per diem wages and the general rate for holiday and overtime work in this locality for
each craft, classification, or type of worker needed to execute the contract for this Project from the State of
California Department of Industrial Relations (“DIR”). Copies of these rates may be obtained at the
CITY’s Purchasing Department office. The general prevailing wage rates are also available at the DIR,
Division of Labor Statistics and Research, web site (see e.g. http://www.dir.ca.gov/DLSR/PWD/index.htm)
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as amended from time to time. CONSULTANT shall post a copy of the general prevailing wage rates at
all Project job sites and shall pay the adopted prevailing wage rates as a minimum. CONSULTANT shall
comply with all applicable provisions of Division 2, Part 7, Chapter 1 of the California Labor Code (Labor
Code Section 1720 et seq.), including but not limited to Sections 1725.5, 1771, 1771.1, 1771.4, 1773.2,
1774, 1775, 1776, 1777.5, 1782, 1810, 1813 and 1815, and all applicable implementing regulations,
including but not limited to Subchapter 3, Title 8 of the California Code of Regulations Section 16000 et
seq. (8 CCR Section 16000 et seq.), as amended from time to time. CONSULTANT shall comply with the
requirements of Exhibit E, entitled “DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS”, for
any contract for public works construction, alteration, demolition, repair or maintenance, including but not
limited to the obligations to register with, and furnish certified payroll records directly to, DIR.
SECTION 27. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS”. For purposes
of this Section 27, a “9204 Public Works Project” means the erection, construction, alteration, repair, or
improvement of any public structure, building, road, or other public improvement of any kind. (Cal. Pub.
Cont. Code § 9204.) Per California Public Contract Code Section 9204, for Public Works Projects, certain
claims procedures shall apply, as set forth in Exhibit F, entitled “Claims for Public Contract Code Section
9204 Public Works Projects”.
This Project is a 9204 Public Works Project and is required to comply with the claims
procedures set forth in Exhibit F, entitled “Claims for Public Contract Code Section 9204 Public Works
Projects”.
SECTION 28. CONFIDENTIAL INFORMATION.
28.1. In the performance of this Agreement, CONSULTANT may have access to
CITY’s Confidential Information (defined below). CONSULTANT will hold Confidential Information in
strict confidence, not disclose it to any third party, and will use it only for the performance of its obligations
to CITY under this Agreement and for no other purpose. CONSULTANT will maintain reasonable and
appropriate administrative, technical and physical safeguards to ensure the security, confidentiality and
integrity of the Confidential Information. Notwithstanding the foregoing, CONSULTANT may disclose
Confidential Information to its employees, agents and subcontractors, if any, to the extent they have a need
to know in order to perform CONSULTANT’s obligations to CITY under this Agreement and for no other
purpose, provided that the CONSULTANT informs them of, and requires them to follow, the confidentiality
and security obligations of this Agreement.
28.2. “Confidential Information” means all data, information (including without
limitation “Personal Information” about a California resident as defined in Civil Code Section 1798 et seq.,
as amended from time to time) and materials, in any form or media, tangible or intangible, provided or
otherwise made available to CONSULTANT by CITY, directly or indirectly, pursuant to this Agreement.
Confidential Information excludes information that CONSULTANT can show by appropriate
documentation: (i) was publicly known at the time it was provided or has subsequently become publicly
known other than by a breach of this Agreement; (ii) was rightfully in CONSULTANT’s possession free
of any obligation of confidence prior to receipt of Confidential Information; (iii) is rightfully obtained by
CONSULTANT from a third party without breach of any confidentiality obligation; (iv) is independently
developed by employees of CONSULTANT without any use of or access to the Confidential Information;
or (v) CONSULTANT has written consent to disclose signed by an authorized representative of CITY.
28.3. Notwithstanding the foregoing, CONSULTANT may disclose Confidential
Information to the extent required by order of a court of competent jurisdiction or governmental body,
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provided that CONSULTANT will notify CITY in writing of such order immediately upon receipt and prior
to any such disclosure (unless CONSULTANT is prohibited by law from doing so), to give CITY an
opportunity to oppose or otherwise respond to such order.
28.4. CONSULTANT will notify City promptly upon learning of any breach in the
security of its systems or unauthorized disclosure of, or access to, Confidential Information in its possession
or control, and if such Confidential Information consists of Personal Information, CONSULTANT will
provide information to CITY sufficient to meet the notice requirements of Civil Code Section 1798 et seq.,
as applicable, as amended from time to time.
28.5. Prior to or upon termination or expiration of this Agreement, CONSULTANT will
honor any request from the CITY to return or securely destroy all copies of Confidential Information. All
Confidential Information is and will remain the property of the CITY and nothing contained in this
Agreement grants or confers any rights to such Confidential Information on CONSULTANT.
28.6. If selected in Section 30 (Exhibits), this Agreement is also subject to the terms and
conditions of the Information Privacy Policy and Cybersecurity Terms and Conditions.
SECTION 29. MISCELLANEOUS PROVISIONS.
29.1. This Agreement will be governed by California law, without regard to its conflict
of law provisions.
29.2. 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.
29.3. 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.
29.4. This Agreement, including all exhibits, constitutes the entire and integrated
agreement between the parties with respect to the subject matter of this Agreement, and supersedes all prior
agreements, negotiations, representations, statements and undertakings, either oral or written. This
Agreement may be amended only by a written instrument, which is signed by the authorized representatives
of the parties and approved as required under Palo Alto Municipal Code, as amended from time to time.
29.5. If a court of competent jurisdiction finds or rules that any provision of this
Agreement is void or unenforceable, the unaffected provisions of this Agreement will remain in full force
and effect.
29.6. In the event of a conflict between the terms of this Agreement and the exhibits
hereto (per Section 30) or CONSULTANT’s proposal (if any), the Agreement shall control. In the event
of a conflict between the exhibits hereto and CONSULTANT’s proposal (if any), the exhibits shall control.
29.7. The provisions of all checked boxes in this Agreement shall apply to this
Agreement; the provisions of any unchecked boxes shall not apply to this Agreement.
29.8. All section headings contained in this Agreement are for convenience and
reference only and are not intended to define or limit the scope of any provision of this Agreement.
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29.9. This Agreement may be signed in multiple counterparts, which, when executed by
the authorized representatives of the parties, shall together constitute a single binding agreement.
29.10. CITY-PROVIDED INFORMATION. The CITY shall furnish the
CONSULTANT available studies, reports and other data it deems necessary for CONSULTANT's
performances of Services under this Agreement, which CONSULTANT may use and rely upon to perform
those Services, so long as CONSULTANT’s use of any Confidential Information complies with Section
28.
29.11. ESTIMATES AND PROJECTIONS. CONSULTANT has no control over the
cost of labor, materials, equipment or services furnished by others, over the incoming water quality and/or
quantity, or over the way the CITY’s plant(s) and/or associated processes are operated and/or maintained.
Data projections and estimates are based on CONSULTANT’s opinion based on experience and judgment.
29.12. THIRD PARTIES. The Services to be performed by CONSULTANT are
intended solely for the benefit of the CITY.
SECTION 30. EXHIBITS. Each of the following exhibits, if the check box for such exhibit is selected
below, is hereby attached and incorporated into this Agreement by reference as though fully set forth herein:
EXHIBIT A: SCOPE OF SERVICES
EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER
EXHIBIT B: SCHEDULE OF PERFORMANCE
EXHIBIT C: COMPENSATION
EXHIBIT C-1: SCHEDULE OF RATES
EXHIBIT D: INSURANCE REQUIREMENTS
EXHIBIT E: DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS
EXHIBIT F: CLAIMS FOR PUBLIC CONTRACT CODE SECTION 9204 PUBLIC
WORKS PROJECTS
THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS ARE
ATTACHED.
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CONTRACT NO. C24187805 SIGNATURE PAGE
IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives
executed this Agreement as of the date first above written.
CITY OF PALO ALTO
____________________________
City Manager
APPROVED AS TO FORM:
__________________________
City Attorney or Designee
CAROLLO ENGINEERS, INC.
Officer 1
By:_______________________________
Name: ___Rick Chan_________________
Title: Senior Vice President____________
Officer 2
By:_________________________________
Name: Anne Prudhel___________________
Title: Executive Vice President___________
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EXHIBIT A
SCOPE OF SERVICES
CONSULTANT shall provide the Services detailed in this Exhibit A, entitled “SCOPE OF SERVICES”.
Notwithstanding any provision herein to the contrary, CONSULTANT’s duties and services described in
this Scope of Services shall not include preparing or assisting CITY with any portion of CITY’s preparation
of a request for proposals, request for qualifications, or any other solicitation regarding a subsequent or
additional contract with CITY. CITY shall at all times retain responsibility for public contracting, including
with respect to any subsequent phase of this project. CONSULTANT’s participation in the planning,
discussions, or drawing of project plans or specifications shall be limited to conceptual, preliminary, or
initial plans or specifications. CONSULTANT shall cooperate with CITY to ensure that all bidders for a
subsequent contract on any subsequent phase of this project have access to the same information, including
all conceptual, preliminary, or initial plans or specifications prepared by CONSULTANT pursuant to this
Scope of Services.
BACKGROUND
Based on the Long Range Facilities Plan (LRFP)1 and lessons learned from 2022-2023 peak wet
weather events, the City identified and described in Request for Proposal (RFP) No.187805 the
constraints and issues of the existing primary treatment process units, and goals of the new
Headworks Facility Project (Project). This information shall be taken into consideration and
verified by the CONSULTANT as part of this Project.
SCOPE OF SERVICES
I. BASIC SERVICES
The CONSULTANT’s scope of work shall include the tasks described in the following sections. The
CONSULTANT shall not perform work on a specific task prior to a written approval by the City.
Task 1 – Project Management
Task 1.1 Invoicing/Project Controls
Provide necessary administration, project controls, quality assurance and professional oversight
of the Project, the CONSULTANT’s staff, and the CONSULTANT's subconsultants to ensure the
1 Long Range Facilities Plan for the Regional Water Quality Control Plant, 2012;
https://www.cityofpaloalto.org/files/assets/public/public-works/water-quality-control-plant/lrfp-final-report-08-
2012.pdf
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Project remains on schedule, remains within budget, maintains continuity of information, and
satisfies the requirements of the CONTRACT.
Prepare and distribute a Project Management Plan (PMP) for City’s record. Within the PMP,
include the baseline schedule, budget, spending projection, contacts/subcontracts and
procedures. Include a Project Directory with roles and contact information and a Quality
Assurance and Quality Control Plan.
Prepare and submit monthly invoice packages to the City. Billing period shall include the full
calendar month and not overlap two separate fiscal years (i.e., not to combine June and July
invoices). If reimbursable costs are incurred, include a summary table listing the subject
matter/personnel name, date, purpose and associated expenses. Provide receipts and label each
receipt with a numerical number. To meet CWSRF loan requirements, reimbursement for
necessary travel and meal shall be at rates not to exceed those set by the California Department
of Human Resources2. Include a progress report with invoices to document progress. Provide
progress updates for each task on the sub-task level, the budget status (authorized amount,
current billing, billed to date, previously billed, amount remaining, and percent spent), an earned
value analysis chart, a list of outstanding issues and potential changes, a Project schedule status
and schedule concerns. Identify and mitigate potential budget overruns and schedule changes.
Track a subtotal of all CWSRF eligible costs per each invoice.
Prepare, maintain, and update the status of Project schedule for City’s review and comments.
Prepare Project schedule status monthly with the Progress Report. Identify and mitigate schedule
changes.
The following subtasks separates out project management services for each Task.
Task 1.1.1 Project Management for Task 2 “Design Bases Determination”.
CONSULTANT shall perform project management and administrative services as
described in Task 1.1 for Task 2 “Design Bases Determination”.
Task 1.1.2 Project Management for Task 3 “Regulatory and Monitoring Support”
CONSULTANT shall perform project management and administrative services as
described in Task 1.1 for Task 3 “Regulatory and Monitoring Support”
2 California Department of Human Resources. Travel Reimbursements.
https://www.calhr.ca.gov/employees/Pages/travel-reimbursements.aspx. Web 3/20/2023
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Task 1.2 Kick-Off Meeting
CONSULTANT shall facilitate an in-person/virtual meeting at the initiation of the Project (Kick-Off
Meeting), with the City Project Manager and City staff to discuss overall Project coordination,
data collection, and Project schedule. Walk the Project site. Provide meeting attendees with an
agenda seven (7) calendar days in advance of the date of the meeting. Provide meeting attendees
with summary minutes and electronic copies of supplemental materials used during the meeting
no later than fourteen (14) calendar days from the date of the meeting.
Task 1.3 Project Progress Meetings
Conduct remote (via phone or web conference services) Project Progress Meetings with City
Project Manager, starting at twice a month minimum frequency throughout the preliminary and
detailed design phases. Frequency of Project Progress Meetings can be adjusted or decreased at
the City’s discretion.
Deliverables:
• Agenda and minutes for all meetings
• Monthly invoices, including monthly Progress Reports
• Draft and final Project Management Plan
Task 2 – Design Bases Determination
Task 2.1 Wastewater Characterization
CONSULTANT shall verify the wastewater characteristics of the influent flow to determine peak
hour grit loadings and other required parameters. For budgeting purposes, CONSULTANT shall
conduct a total of four (4) sampling episodes (targeting two (2) dry weather and two (2) wet
weather events) within a six-month period. Each sampling episode will consist of three days of
grit sampling and testing at the RWQCP to characterize the grit size and measure grit settling
velocity. For each sampling episode, CONSULTANT shall conduct approximately six (6) hours of
continuous sampling bracketing the daily peak flow ramp-up. CONSULTANT shall prepare a field
report of each sampling episode that includes all raw data collected and provide side-by-side
plots of weight distribution of grit physical size, influent grit concentration and projected daily
grit loads, sand equivalent size determination, and percent total solids and total volatile solids.
Using the data from all four (4) sampling episodes, CONSULTANT shall develop a plant-specific,
predictive grit removal curve to establish the design basis for the grit removal facility.
CONSULTANT shall review and analyze the Plant’s influent flows from 1998 to 2023 to evaluate
and confirm the following flow parameters desired for design. These include: 1) minimum flow,
2) average dry weather flow, 3) average wet weather flow, 4) peak dry weather flow, and 4) peak
wet weather flow.
CONSULTANT shall review and analyze the Plant’s records on influent grit tonnage and flow
trends from the 2022/2023 wet season.
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CONSULTANT shall prepare and submit two technical memorandums (TM) to document this
effort:
• TM1: This will document the analysis of influent flow and plant records on influent grit
tonnage.
• TM2: This will document the results of the wastewater grit characterization described
above.
Task 2.2 Geotechnical Desktop Study
CONSULTANT shall perform a desktop review of existing Geotechnical Reports completed for the
RWQCP and identify data gaps. This will include the following:
• Geotechnical site reconnaissance of the headworks area(s) proposed to be evaluated.
• Compilation and review of available, pertinent soils, geotechnical, geologic, and seismic
data previously developed for improvements at the site completed in previous
geotechnical reports and readily attainable from the City, Caltrans, USGS, and other public
agencies.
CONSULTANT shall then prepare a Geotechnical Desktop Study that includes a summary of key
findings and conclusions of the following items: 1) known geotechnical explorations map of the
project area, regional soils and geologic maps, groundwater levels recorded in the project area,
geologic hazard maps, general excavation and shoring requirements, selected geologic
engineering soil properties, preliminary foundation design recommendations for piles and mat
foundation designs, and a site-specific geotechnical field investigation plan.
Note that the geotechnical field investigation activities, as well as potholing for underground
utilities and topographic surveying services will be conducted as part Detailed Design.
Task 2.3 Workshops
Conduct workshops with Plant staff on specific process units and facilities that are included as
part of this Project. Hybrid meetings (in-person and virtual) with CONSULTANT are preferred.
Verify Plant’s meeting audio/visual equipment in advance. Provide meeting attendees with an
agenda and materials at least seven (7) calendar days in advance of the date of the workshop.
Provide meeting attendees with summary minutes no later than fourteen (14) calendar days from
the date of the workshop. CONSULTANT may include vendor presentations for major equipment
to help the City to understand the functions, operations and maintenance requirements
associated with the specific equipment.
Workshop topics shall include, but not limited to the following:
1) Rehabilitate or replace existing influent junction box (JB0)
o Influent gate reliability and redundancy criteria
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o Influent gate actuator controls technologies and alternatives
o Influent gates modes of operation
o O&M considerations
2) Hydraulics and Lift Pump Technology
o Pump system reliability and redundancy criteria
o Pump performance criteria
o Dry well pump station layout alternatives
o Pump type alternatives
o O&M considerations
3) Screening Technology (following Task 2.1)
o Screening system reliability and redundancy criteria
o Single- vs. multi-stage screening comparison and need evaluation
o Screening technologies (coarse and fine screening) and alternatives
o Screening processing/conveyance/dewatering technologies and alternatives
o O&M considerations
4) Degritting Technology (following Task 2.1)
o Grit removal system reliability and redundancy criteria
o Grit assay/load
o Grit removal technologies and alternatives
o Grit washing and handling technologies and alternatives
o O&M considerations
5) Odor and Odor Control
o Odor control system reliability and redundancy criteria
o Odor control technologies and alternatives
o Multi-gas (H2S, CO, O2 and LEL) monitoring
o Anticipated odor control demand
o Odor control strategy alternatives for open and enclosed facilities. Consider
energy, noise, maintenance, and bioscrubber and/or chemical use.
o Overall ventilation strategy
o O&M considerations
6) Septage Receiving Station
o Rock trap
o Grinder
o Monitoring
o Washdown and cleanup equipment
o Security camera and electronic login station to track septage unloading quantities
for billing purposes.
o Site traffic attributed by the septic trucks
o O&M considerations
7) Wastewater and Waste Streams Monitoring
o Influent flow monitoring; recycle (return) flow monitoring; and drain water
metering
o Equalization
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o Influent raw sewage sampling system
o O&M considerations
8) Modifications to former CCT Inlet Box, Outlet Box and Recycled Water Feed Pumps to
allow for demolition of CCT.
o The inlet box is located on the southeast corner of the CCT. It is no longer in
service. An old sluice gate at the inlet box was kept in closed position to isolate
the flows from the 72” pipe which is still charged with flows from the Dual Media
Filter.
o The Outlet Box (still active) is attached to former CCT. Circa 2009, it was modified
to receive final effluent from the new UV Facility and convey flows via two 48”
diameter pipes to the Final Effluent Outfall Structure. As part of this Project
relocate or modify the Outlet Box and associated piping, as needed.
o The Recycled Water Feed Pumps are located immediately adjacent to the former
CCT. These pumps and associated suction and discharge piping shall be replaced
and relocated to allow for demolition of the former CCT.
9) Power
o Medium Voltage Distribution Upgrades
The 12kV Power Distribution Upgrades Project (designed completed by
Salas O’Brien in 2022) includes 7 phases of construction that will need to
be completed at RWQCP. As part of this Headworks Project, evaluate the
need and include logistics to incorporate some phases of the medium
voltage upgrades into the Project
o New Headworks Equipment
New motor control centers (MCCs), power meters and variable frequency
drives (VFDs)
New 12kV Load Centers
New backup standby generator, automatic transfer switch and above
ground diesel fuel storage tank
o Arc Flash Mitigation
Review current industry best practices for arc flash mitigation and discuss
design strategies for integrating arc flash mitigation into the plant’s
standard operating procedures
o Existing Infrastructure
Retirement of MCC-D and MCC-E from service from the NPP generators
MCC-D and MCC-E have their main breakers and their ATS units in the
decommissioned Incinerator Building. They are connected to the backup
generator inside NPP. A refeed of power distribution of MCC-D and MCC-
E from the Sludge Dewatering and Loadout Facility to allow further
decommissioning of the Incinerator Building is desired. The Sludge
Dewatering and Loadout Building already anticipated future power
distribution to MCC-D and MCC-E, including connected load for standby
power, and this Project would have stranded assets if left powered by
generators at the NPP.
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10) Palo Alto RWQCP Process Automation Standards
o Plant’s I&C & SCADA standardization, including discussions on asset tagging,
process tagging, design document formats, panel and wiring requirements,
Programmable Automation Controller hardware and software standards,
programming standards, control system networking standards, and graphical
system standards.
11) Corrosion Protection and Cathodic Protection
o Protection of new and related existing facilities from corrosive sewage off-gas and
surrounding chloride-latent groundwater
12) Landscape and Screening
o Comply with City’s Tree Protection Ordinance 3
o Comply with City’s guidelines on plant species and landscape development4
13) Operations and Maintenance
o Hydraulic control strategy
Influent sewer water level monitoring
Equalization
Hydraulic control procedures and equipment
o Screenings and Grit Handling and Disposal
Truck turnaround analysis
Separate or combined dumpsters (for both screenings/grit)
Dumpster removal logistics
o Equipment seal water, washwater and area hose bib water demand
o Power and standby power demands
o Equipment accessibility for O&M operations
14) Layout
o Collaborate with the City to develop at least three and up to five layout concepts.
Perform an evaluation of the concepts and present the layouts.
Example parameters that could be varied between concepts include
Headworks Facility location, footprint, facility depth, and equipment
within the headworks building or standalone.
Consider foundation systems, Palo Alto Sea Level Rise Adaptation Policy 5,
existing facility demolition, and other significant ancillary improvements to
implement each concept.
3 City of Palo Alto. Tree Ordinance Information. https://www.cityofpaloalto.org/Departments/Public-Works/Public-
Services/Palo-Altos-Urban-Forest/Tree-Ordinance-Update-2022/Tree-Ordinance-Information. Web 3/20/2023
4 City of Palo Alto. Palo Alto Municipal Code. American Legal Publishing.
https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0-0-0-59235. Web 3/20/2023
5 City of Palo Alto. Sea Level Rise Adaptation Policy. Approved March 18, 2019.
https://www.cityofpaloalto.org/files/assets/public/sustainability/sea-level-rise/slr-adaptation-
policy_web.pdf?t=71340.78. Web 3/20/2023
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Some of the demolition, reconfiguration, and/or repurposing that may be
required to implement the Project, avoid stranded assets, and/or meet the
Project’s Long-Term Goals includes:
i. Original Pump House constructed in 1934 and
decommissioned in 1956. It is now being used by operators
for confined space training. Building is powered by MCC-C.
ii. Old Pumping Plant (OPP) and MCC-C.
iii. New Pumping Plant (NPP)
iv. Raw Sewage Meter Pit
v. Buried 15” vitrified clay pipe (VCP) recycled (return) line
vi. Buried 12” VCP yard drain line
vii. Septic pad and related piping
viii. Diesel fuel storage tank for the backup generator
ix. NPP generators
x. NPP exhaust air piping and soil biofilter (BAAQMD
abatement device for NPP)
xi. Influent box sluice gates and hydraulic control equipment
Show proposed modifications to the CCT inlet box, outlet box and recycled
water feed pumps.
In collaboration with the City, determine the best layout (preferred
alternative) for the Headworks Facility.
City will provide upstream water surface elevations in the collection
system just upstream of JB0 for CONSULTANT’s use for hydraulic modeling
of the preliminary treatment process (i.e., no collection system modeling
is required of the CONSULTANT).
o Include a layout drawing(s) and a process flow diagram for each concept.
o Provide a list of major equipment and facility components, a list of existing
facilities to be rehabilitated, and a list of existing facilities to be demolished for
each concept.
o Provide a high-level Class 4 construction cost estimate for each concept.
15) Constructability and Sequencing Workshop for the preferred Headworks Facility Project
alternative
o Sequence of improvements and decommissioning/demolition
o Extent of shutdowns and shutdown strategies
o Replacement of yard piping (force main) to Primary Influent Channel
Materials
Temporary facilities
o Power feed modifications at Sludge Dewatering Building, former Incineration
Building and Headworks Facility. Include interface with the 12kV ductbank layout
in the yard and standby power system, all designed by others.
o Plant operations and maintenance during construction
o Coordination with the other CIP construction projects during the Project
construction
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16) Bypassing and Shutdown Coordination Workshop (separately or in conjunction with the
Constructability and Sequencing Workshop)
o Address bypass configuration required to complete the work, as understood at
the preliminary design stage, including:
60” Raw Sewage Force Main to Primary Influent Channel (PIC) replacement
PIC cleaning, concrete repair, coating, and improvements (e.g., PST
influent gate replacement)
Sludge Dewatering Filtrate (to PIC) bypass
Thickener Overflow (to PIC) bypass
Dual Media Filter Backwash water (to PIC) bypass
Recycled water feed pumps A and B at southwest edge of former CCT
Buried 72-inch secondary clarifier effluent (Dual Media Filter effluent)
pipe, not in use at this tail end but still surcharged and connected to former
CCT inlet box
Buried 15” diameter recycle (return) line to NPP barscreen room
replacement/relocation; line carried scrubber water from 1972 to 2019
and can be oversized for future needs
Note: line carries low pH water from an odor control biofilter dedicated to
the Sludge Dewatering and Loadout Facility, incinerator and chlorine
building drains, meter pit sump discharge, blend tank drain/overflow line,
sodium hypochlorite containment area drains, etc.
Task 2.4 Basis of Design Report
Prepare a Basis of Design Report (BoDR) that incorporates the findings from Tasks 2.1, 2.2, and
2.3. Provide a cover page for each final chapter that includes the stamp and signature of the
engineer(s) in responsible charge, the review engineer(s) and the preparers. Clearly note
assumptions and append calculations with professional engineer’s stamp.
The following shall be included in the BoDR:
• Executive Summary highlighting key analysis, findings, and recommendations.
• Design bases, codes and standards for each design discipline.
• Update the Plant’s flow and grit/screening projections. Document the following:
o Minimum Flow (MF) and potential for solids deposition and impacts on flow
metering
o Average Dry Weather Flow (ADWF) and grit/screening loadings
o Peak Dry Weather Flow (PDWF) and grit/screening loadings
o Average Wet Weather Flow (AWWF) and grit/screening loadings
o Peak Wet Weather Flow (PWWF) and grit/screening loadings
• Performance requirements for major equipment and process units.
• Anticipated changes/ improvements to Plant’s treatment processes.
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o Screening and degritting equipment shall reduce risks of damages caused by grits
and abrasive materials to downstream equipment/processes (e.g., MABR, pumps,
clarifiers).
o Existing and potential grit parameters for biosolids receiving facilities.
o Identify areas at the Plant where operators observed grit accumulation.
• Operations and Monitoring
o Update process flow diagram with metering and sampling locations and
associated procedures. Coordinate with City on sampling locations.
o Identify major facility assets and associated high-level controls, monitoring and
preventative maintenance requirements.
o Develop duty and standby configurations for all major equipment, including the
bar screens, pumps, grit system, and power.
o Outline the process control system. Develop control strategy schemes for
addressing several operational scenarios:
ADWF mode
PDWF mode
AWWF mode
PWWF mode
Headworks pump failure
Power outages
Plant shutdowns using the influent sewer for temporary storage
Electrical switch failure
Maintenance mode
• Permitting and Compliance
o Identify the anticipated conditions or regulatory approval process for design and
construction activities, including:
CEQA+ Documentation
Federal Aviation Authority (Notification Forms 7460-1 and 7460-2)
Bay Area Air Quality Management District (Odor control and diesel
generator approvals)
Palo Alto Planning & Development Department Approvals (Planning and
Transportation Commission, Architectural Review Board, Tree Removal)
Palo Alto Fire Department
Palo Alto Zoning Requirements (The RWQCP is in the CITY’s PF (D) zone,
public facility with a combining site and design review, which imposes
certain height restrictions on the new construction. Per the Palo Alto
Municipal Code, the height limit is 50’ above grade level.)
Palo Alto’s Baylands Nature Preserve Site Assessment and Design
Guidelines
Palo Alto Sea Level Rise Adaptation Policy
o Fire protection requirements. Develop a table of the applicable state and local
permits, lead times, and approval stage/design milestone
o Note pending, or anticipated, regulatory and permitting changes
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• Layout, Constructability, and Sequencing
o Provide a layout of the preferred Headworks Facility alternative
o Provide architectural perspective views of the preferred Headworks Facility
alternative
o Provide landscape perspective views surrounding the preferred Headworks
Facility alternative
o Develop a sequencing plan for implementation, including the decommissioning,
demolition and/ or modifications of existing facilities. Identify anticipated
temporary facilities to maintain Plant’s operations during construction
o Identify anticipated major shutdowns and work sequence
• Special Equipment
o Recommend equipment that the Project would benefit from if pre-selected or
sole-sourced and provide the associated justifications.
o Identify equipment that has no known equals. Provide the unique details of the
equipment.
• Capital Cost and Life Cycle Cost Estimates
o Develop Class 4 capital costs for the complete Headworks Facility Project,
including the costs for the following:
All new equipment, structures, pipelines and ancillary systems
Primary Influent Channel work, including inlet gates replacement, debris
cleanout, and concrete repair and coating.
Supplemental grit building replacement
Other existing facilities and ancillary systems identified during the
workshop and included in the BoDR.
o Develop a present value for the life cycle costs
Deliverables:
• Wastewater Characterization Field Sampling Plan
• Influent Flow Analysis and Wastewater Grit Characterization Technical Memorandum,
draft and final
• Geotechnical Desktop Study (Including a geotechnical Field Investigations Plan), draft and
final
• Agenda, materials and minutes for all workshops
• Draft and final versions of each BoDR chapter, with a comment response log
• Digital binder of all the final chapters and appendices into a Final Basis of Design Report,
including the Executive Summary
• Class 4 Capital and Life Cycle Cost Estimates
Task 3 – Regulatory and Monitoring Support
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Task 3.1 RWQCB Planning
Attend up to three virtual meetings with the San Francisco Bay Area Water Quality Control Board
(RWQCB) to present the proposed Project, with a focus on how the construction will be
sequenced to facilitate compliance monitoring. Coordinate with the City’s Regulatory Group the
scheduling and content for each of the RWQCB meetings. For budgeting purposes, two (2)
CONSULTANT team members will attend each virtual meeting that is anticipated to last a
maximum of two (2) hours.
Task 3.2 Collaboration with City’s Regulatory Group and Plant’s SCADA Technologists
Collaborate with the City’s regulatory group and SCADA technologists to plan the following
activities:
• Integrating new influent flowmeter(s) signals for temporary bypass system required
during construction and permanent flowmeter system into Plant SCADA and Plant
information management systems used for regulatory reporting.
• Integrating new influent sampling locations used for temporary construction and
permanent systems.
Facilitate two (2) virtual workshops to discuss and address the City’s Regulatory Group’s
comments. Coordinate with City’s Project Manager on the workshop agenda. Anticipated
discussion items include:
• Generator permitting
• Odor control air emission permitting
• Influent flow metering
• Influent sewage sampling
• Septic receiving/monitoring
Deliverables:
• RWQCB meeting minutes
• BAAQMD meeting minutes
• Agenda, materials, and minutes for all workshops/ meetings
II. REIMBURSABLE
See Exhibit C “Compensation” of this Contract.
III. ADDITIONAL SERVICES
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The Consultant shall provide additional services only by advanced, written authorization from the
City in accordance with Section 4 of this Contract. The additional services include, but not limited
to, the following:
• Additional technical supports associated with unforeseen conditions encountered during
construction.
• Additional work related to this Project, as request by the City Project Manager, which is
not in Basic Services.
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EXHIBIT A-1
PROFESSIONAL SERVICES TASK ORDER
CONSULTANT shall perform the Services detailed below in accordance with all the terms and conditions
of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into this
Task Order by this reference. CONSULTANT shall furnish the necessary facilities, professional, technical
and supporting personnel required by this Task Order as described below.
CONTRACT NO.
OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE)
1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE):
1B. TASK ORDER NO.:
2. CONSULTANT NAME:
3. PERIOD OF PERFORMANCE: START: COMPLETION:
4 TOTAL TASK ORDER PRICE: $__________________
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $_______________
5. BUDGET CODE_______________
COST CENTER________________
COST ELEMENT______________
WBS/CIP__________
PHASE__________
6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:_____________________________________
7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A)
MUST INCLUDE:
SERVICES AND DELIVERABLES TO BE PROVIDED
SCHEDULE OF PERFORMANCE
MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)
REIMBURSABLE EXPENSES, if any (with “not to exceed” amount)
8. ATTACHMENTS: A: Task Order Scope of Services B (if any): _____________________________
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I hereby authorize the performance of the
work described in this Task Order.
APPROVED:
CITY OF PALO ALTO
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
this Task Order and warrant that I have
authority to sign on behalf of Consultant.
APPROVED:
COMPANY NAME: ______________________
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
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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 (“NTP”) from the CITY.
Milestones Number of Months (as specified below)
from NTP
1. Project Management 16
2. Basis of Design Report 16
3. Regulatory and Monitoring Support 24
4. Contract End Date 100
Optional Schedule of Performance Provision for On-Call or Additional Services Agreements.
(This provision only applies if checked and only applies to on-call agreements per Section 1 or agreements
with Additional Services per Section 4.)
The schedule of performance shall be as provided in the approved Task Order, as detailed in Section 1
(Scope of Services) in the case of on-call Services, or as detailed in Section 4 in the case of Additional
Services, provided in all cases that the schedule of performance shall fall within the term as provided in
Section 2 (Term) of this Agreement.
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EXHIBIT C
COMPENSATION
CITY agrees to compensate CONSULTANT for 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 rate schedule attached as Exhibit C-1 up to the not to exceed budget amount for
each task set forth below.
CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks
or categories listed below, provided that the total compensation for the Services, including any specified
reimbursable expenses, and the total compensation for Additional Services (if any, per Section 4 of the
Agreement) do not exceed the amounts set forth in Section 4 of this Agreement.
CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and Additional
Services (if any, per Section 4), within this/these amount(s). Any work performed or expenses incurred for
which payment would result in a total exceeding the maximum amount of compensation set forth in this
Agreement shall be at no cost to the CITY.
BUDGET SCHEDULE
TASK NOT TO EXCEED AMOUNT
(Project Management)
(Basis of Design Determination)
(Regulatory and Monitoring Support)
Total for Services and Reimbursable Expenses $1,480,296
Maximum Total Compensation $1,628,326
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REIMBURSABLE EXPENSES
CONSULTANT’S ordinary business expenses, such as administrative, overhead, administrative
support time/overtime, information systems, software and hardware, photocopying,
telecommunications (telephone, internet), in-house printing, insurance and other ordinary business
expenses, are included within the scope of payment for Services and are not reimbursable expenses
hereunder.
Reimbursable expenses, if any are specified as reimbursable under this section, will be reimbursed
at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be reimbursed are:
travel to the project site from outside of the San Francisco Bay Area and printing of the design
document as specified in the Scope of Services up to the not-to-exceed amount of: $20,500.00.
A. Travel outside the San Francisco Bay Area, including transportation and meals, if specified as
reimbursable, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for
reimbursement of travel and meal expenses. To meet CWSRF loan requirements, reimbursement for
necessary travel and meal shall be at rates not to exceed those set by the California Department of
Human Resources.
B. Long distance telephone service charges, cellular phone service charges, facsimile transmission
and postage charges, if specified as reimbursable, will be reimbursed at actual cost.
C. Printing of the project document as specified in the Scope of Services:
• Final Basis of Design Report - 5 copies
All requests for reimbursement of expenses, if any are specified as reimbursable under this section,
shall be accompanied by appropriate backup documentation and information.
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EXHIBIT C-1
SCHEDULE OF RATES
The applicable rate schedule by which CONSULTANT will be paid for Services rendered under this
Agreement and its Task Order(s), if any, is set forth below as Exhibit “C-1”, entitled “SCHEDULE OF
RATES”. The fee schedules attached hereto in Exhibit C-1 shall apply during the first year of the
term of the Agreement. Thereafter, CONTRACTOR’s compensation rates shall be adjusted annually
effective on the commencement of the second year, as follows: Each unit price, hourly rates, and fee, as set
forth in the attached fee schedule, shall be adjusted by a percentage equal to the change in the Consumer
Price Index for Urban Wage Earners and Clerical Workers for the San Francisco-Oakland-San Jose area,
published by the United States Department of Labor Statistics (CPI), published most immediately preceding
the commencement of the applicable contract year, compared with the CPI published for the prior year.
Notwithstanding the foregoing, in no event shall CONTRACTOR’s compensation rates be increased by an
amount exceeding five percent of the rates effective during the immediately preceding contract year. Any
work performed or expenses incurred for which payment would result in a total exceeding the maximum
compensation as set forth herein shall be at no cost to the CITY. CONSULTANT’s total markup on work
performed by any subconsultant shall not exceed five percent (5%). Direct expenses shall be at cost with
no markups.
CONSULTANT’s schedule of rates is shown in the following pages:
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Prime Consultant: Carollo Engineers, Inc.
Engineers/Scientists Hourly Rate
2024 / 2025
Technicians
Support Staff
Other Direct Expenses
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Subconsultant: Bay Area Coating Consultants, Inc.
Subconsultant: Callander Associates
Principal $250/hour $260/hour
Senior Associate $227/hour $236/hour
Associate $216/hour $225/hour
Arborist/Construction
Manager
$190/hour $198/hour
Senior Project Manager $196/hour $204/hour
Project Manager 1 $187/hour $195/hour
Project Manager 2 $178/hour $185/hour
Job Captain $164/hour $171/hour
Designer 1 $154/hour $161/hour
Designer 2 $140/hour $146/hour
Assistant Designer $125/hour $130/hour
Accounting $189/hour $197/hour
Senior Project
Administrator
$144/hour $150/hour
Project Administrator $128/hour $134/hour
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Subconsultant: Environmental Science Associates (ESA)
I. Personnel Category Rates
Charges will be made at the Category hourly rates set forth below for time spent on project management,
consultation or meetings related to the project, field work, report preparation and review, travel time, etc.
Time spent on projects in litigation, in depositions and providing expert testimony will be charged at the
Category rate times 1.5.
2024 Rates
LABOR
CATEGORY
BILLING
STEP I
BILLING
STEP II
BILLING
STEP III
BILLING
STEP IV
BILLING
STEP V
BILLING
STEP VI
Senior Principal
Consultant
270
302
333
366
397
429
Principal Consultant 218 248 276 305 334 363
Managing
Consultant 195 217 241 264 287 309
Senior Consultant 154 174 196 216 238 258
Associate
Consultant 138 152 165 178 193 205
Consultant 106 119 132 146 159 172
Project Technician 81 105 129 154 177 201
2025 Rates
LABOR
CATEGORY
BILLING
STEP I
BILLING
STEP II
BILLING
STEP III
BILLING
STEP IV
BILLING
STEP V
BILLING
STEP VI
Senior Principal
Consultant
284
317
350
384
417
451
Principal Consultant 229 260 290 320 351 382
Managing
Consultant 204 228 253 277 301 325
Senior Consultant 161 183 206 227 250 271
Associate
Consultant 145 160 174 187 202 216
Consultant 111 125 139 153 167 181
Project Technician 85 110 135 161 186 211
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Subconsultant: EXARO Technologies Corporation
Operations Manager $219.30 $225.88
Project Manager $219.30 $225.88
Project Coordinator $130.30 $134.20
Lead Foreman $236.85 $243.95
Foreman $208.46 $214.71
Field Technician $197.40 $203.31
Arrow Board 160.00 165.00
Core Machine Ultimate 550.00 555.00
Electronic Detection Locator 120.00 135.00
Fuel TBD --
GPR Rebar Scanner / Utility Locator 300.00 320.00
Loader Bobcat 410.00 425.00
Material TBD --
Mini Excavator 436.00 450.00
Trencher 528.00 550.00
Tripod Rescue 165.00 180.00
Walk Behind Cutting Saw 100.00 120.00
Truck 220.00 240.00
Dump Truck 410.00 430.00
Vacuum Truck 1,100.00 1,200.00
Vacuum Truck with Boom Super Sucker 1,500.00 1,600.00
Permits/Bonds TBD --
Subsistence / Travel 400.00 500.00
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Subconsultant: Haley & Aldrich
1. Labor related fees will be computed based on personnel billing rates in effect at the time the services
are performed. Personnel billing rates are subject to revision on, or about, 1 January and 1 July of
each year. The hourly rates are fully inclusive of fringe benefits, burden, and fee. Current rates are
provided in the table below.
Classification 2024 2025
Project Support $135 $139
Technician* $135 $139
Technical Specialist $233 $241
*See Note 3.
2. Pre‐trial conferences, depositions, and expert testimony will be billed at one and one‐half (1.5) times
the rates quoted above.
3. Rates for technician and inspector work that are subject to State of California prevailing wage laws
are for straight time, and reflect wage and benefits scales published by the California Department of
Industrial Relations (DIR) for the greater San Francisco Bay Area as of June 1, 2021. Standard
overtime and holiday overtime rates are 15% and 30% more than the straight time rates, respectively.
All services subject to prevailing wage laws will be subject to change on a prorated basis to reflect
applicable revisions to the DIR’s published wage and benefit scales.
4. Field visits will be billed at 4‐hour minimum; night shifts will be billed at 8‐hour minimum.
Cancellation of scheduled night shift within 24 hours will be charged the full 8 hours.
5. Direct non‐salary expenses will be billed at our cost or as otherwise agreed upon, except for employee
vehicle use which will be billed at IRS allowed mileage rates.
6. Subcontractors will be billed at our cost unless otherwise agreed upon.
7. Equipment and laboratory testing will be billed at rates listed in the attached Equipment and
Laboratory Rate Schedule, as applicable.
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Subconsultant: Haley & Aldrich (Continued)
EQUIPMENT/LABORATORY RATE SCHEDULE
(*Equipment unit prices subject to bi‐annual increases.)
UAS DATA ACQUISITION & PROCESSING Hour Day
UAS Digital Imagery Equipment ‐‐‐ $200
UAS Digital Imagery w/Ground Control
Package (UAS + GNSS) ‐‐‐ $300
‐‐‐
‐‐‐ $400
LiDAR SCANNING & PROCESSING Hour Day
‐‐‐
‐‐‐ $500
FIELD & LABORATORY TESTING Daily Weekly Monthly
4‐Point Soil‐Cement Curve + Compressive $650
Moisture Content ‐ ASTM D 2216 (per test)
‐‐‐‐‐‐
‐‐‐‐‐‐
‐‐‐‐‐‐
‐‐‐‐‐‐
‐‐‐‐‐‐
‐‐‐‐‐‐
‐‐‐‐‐‐
‐‐‐‐‐‐
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EQUIPMENT/LABORATORY RATE SCHEDULE (continued)
AIR MONITORING EQUIPMENT Daily Weekly Monthly
Drager/Rae Sampling Kit (tubes not included) $10 $40 $120
Dust Monitor $100 $400 $1,200
Four‐Gas Meter $43 $172 $516
Photoionization Detector ‐ 10.6 or 11.7 eV $70 $280 $840
Soil Sampling or Tank Pull Equipment Bundle $150 $350 $1,050
Soil Vapor Sampling Bundle $400 $1,400 $2,600
Turbidity Meter $20 $80 $240
YSI Meter with Flow Cell $100 $400 $1,200
WATER LEVEL METERS AND INTERFACE
Daily Weekly Monthly
Barologger $10 $40 $120
Levelogger $25 $100 $300
Oil/Water Interface Probe $50 $200 $600
Water Level Indicator $20 $80 $240
GEOTECHNICAL INSTRUMENTATION Daily Weekly Monthly
Cone Penetrometer $15 $60 $180
Crack Monitors ‐ Electronic Datalogger ‐‐‐ $120 $360
Dynamic Cone Penetrometer $150 ‐‐‐ ‐‐‐
Electronic Readout Box $25 $100 $300
Geokon LC‐2 Single Channel Logger ‐‐‐ $80 $240
Geokon ‐ CR 800 Vibrating Wire Datalogger with
‐‐‐ $100 $300
Geokon GK 401 Vibrating Wire Readout Box $50 $100 $300
In‐Place Inclinometer Rental ‐‐‐ ‐‐‐ $1,250
Modem ‐‐‐ ‐‐‐ $250
Nuclear Density Gauge $100 $300 $900
Power System ‐ Battery $5 $20 $60
Power System ‐ Solar $15 $60 $180
Seismograph ‐ Manual $75 $225 $725
Seismograph ‐ Remote Units $100 $275 $825
Tiltmeter ‐‐‐ $150 $450
Vibration and Sound Monitoring Station $125 $325 $925
VDV Web Service ‐‐‐ ‐‐‐ $200
MISCELLANEOUS Daily Weekly Monthly
Decontamination Kit (each) $50 ‐‐‐ ‐‐‐
Field Truck (including fuel) $95 $380 $1,140
Generator $50 $200 $600
GeoTech Sample Jars 16 oz. (per box) $10 ‐‐‐ ‐‐‐
GNSS Measurement Unit $100
Harness with Restraint Lanyard $40 $160 $480
Motorola CP200d Radio (pair) ‐‐‐ $35 $140
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Subconsultant: Haley & Aldrich (Continued)
EQUIPMENT/LABORATORY RATE SCHEDULE (continued)
MISCELLANEOUS (continued) Daily Weekly Monthly
Personal Protective Equipment ‐ Level C (per
$45 ‐‐‐ ‐‐‐
R/V Catalyst ‐ 26 Ft Sampling Vessel $600 ‐‐‐ ‐‐‐
Research Nets $60 ‐‐‐ ‐‐‐
Sampling Tubing (roll) $20 ‐‐‐ ‐‐‐
Saximeter II $35 $140 $420
Sound Level Meter $50 $200 $600
Tool Trailer $300 ‐‐‐ ‐‐‐
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Subconsultant: JDH Corrosion Consultants, Inc.
Personnel Charges 2024 Rate 2025 Rate
$265.00 $276.00
$120.00 $125.00
& Mediations (4 hour min. charge) $400.00 $416.00
Cost
Current IRS Standard Mileage Rate
Cost
Cost
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Subconsultant: Jensen Hughes, Inc.
Hourly Rates Hourly Rates
Technical Fellow Varies Varies
Senior Consultant $285 - $345 $290 - $350
Consultant $215 - $270 $220 - $275
Associate $150 - $200 $155 - $205
Technician / Intern $115 $120
Project Administrator $100 - $130 $105 - $135
Subconsultant: Mizutani Environmental
Hourly Rate
2024 / 2025
Engineering Staff
Courtney Mizutani $245.00 / $257.00
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Subconsultant: MWA Architects, Inc.
Resource Title 2024 Base Bill Rate 2025 Base Bill Rate (+3%)
Principal-in-Charge 267.80 275.83
Director 231.75 238.70
Sr. Project Manager 195.70 201.57
Project Manager 175.10 180.35
Senior Project Architect 190.55 196.27
Architect 3 169.95 175.05
Architect 2 149.35 153.83
Architect 1 139.05 143.22
Design Staff 4 164.80 169.74
Design Staff 3 144.20 148.53
Design Staff 2 123.60 127.31
Design Staff 1 113.30 116.70
Senior Interior Designer 154.50 159.14
Interior Designer 139.05 143.22
Graphic Designer 118.45 122.00
Project Accountant 139.05 143.22
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Subconsultant: TJC and Associates, Inc.
Engineer 2024 2025 2024 2025
E20 $333.00 $346.00 $224.00
E18 $312.00 $324.00 $202.00
E15 $281.00 $292.00 $170.00
E14 $270.00 $281.00 $159.00
E13 $259.00 $269.00 $148.00
E12 $245.00 $255.00 $137.00
E11 $233.00 $242.00 $126.00
E10 $220.00 $229.00 $114.00
E9 $208.00 $216.00 $104.00
E8 $194.00 $202.00 $93.00
E7 $182.00 $189.00 $82.00
E5 $156.00 $162.00 $60.00
E3 $131.00 $136.00 $38.00
E1 $105.00 $109.00 $18.00
CAD 2024 2025
C10 $203.00 $211.00 Auto Mileage
C9 $189.00 $197.00
C7 $164.00 $171.00
C3 $113.00 $118.00
C2 $101.00 $105.00
C1 $88.00 $92.00
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Subconsultant: Towill, Inc.
LAND SURVEY SERVICES FEE SCHEDULE
Labor Description 2024 Hourly Rate
Per Court Appearance
(Minimum)..................................................................................................$2,884.00
Prevailing Wage Rates by Field Survey Personnel Classifications
Party Chief ......................................................................................................................................$ 170.00
Chain Person ..................................................................................................................................$ 155.00
Apprentice ......................................................................................................................................$
Notes:
137.00
• Field survey personnel and crews are billed at a minimum of 8 hours per day only.
• Field survey rates are inclusive of one survey vehicle, vehicle mileage up to 50 miles from
the home office, conventional and GPS survey equipment, and standard safety
equipment.
SPECIAL LABOR RATES
Labor Description Hourly
Rate
Hazmat Crew Supplement ...................................... Field Personnel Rate plus $10.00 per Person per
Hour
Night Shift Work ....................................................... Field Personnel Rate plus 12.5% per Person per
Hour
AUTHORIZED OVERTIME LABOR RATES
Labor Description Hourly
Rate
Saturdays and in Excess of 8 Hours on Weekdays .................................................... 1.5 times Regular Rate
Sundays and Holidays ............................................................................................... 2.0 times Regular Rate
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PHOTOGRAMMETRY / AIRBORNE LIDAR / GIS SERVICES FEE SCHEDULE
LABOR DESCRIPTION 2024 HOURLY
RATE
EQUIPMENT AND OTHER DIRECT COSTS
LABOR DESCRIPTION 2024 RATE
Airborne LiDAR Sensor…………………………………………………………………………….…………..Quote Provided per
Project
Digital Aerial Photography Camera…………………………………………………………………………….…Quote Provided per
Project
Small Unmanned Aircraft Systems …………………………………………………..…………………………Quote Provided per
Project
Specialty Remote Sensing Equipment…………………………………………………………………………...Quote Provided per
Project
Geomatics Principal Manager ................................................................................................... $ 263.00
Geomatics Project Manager ..................................................................................................... $ 211.00
Geomatics Specialist ……………………………………………………………………………………………………………. $ 180.00
Senior Geomatics Analyst ......................................................................................................... $ 160.00
Geomatics Analyst ..................................................................................................................... $ 129.00
Geomatics Technician ............................................................................................................... $ 113.00
Project Safety ………………………………………………………………………………………………………………………. $ 129.00
Project Coordinator ................................................................................................................... $ 98.00
Project Assistant ........................................................................................................................ $ 77.00
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Subconsultant: Wilson Ihrig
Senior Principal/Engineer $ 320 $ 330
Principal $ 293 $ 302
Associate Principal $ 248 $ 255
Senior Consultant $ 206 $ 212
Associate $ 175 $ 180
Assistant $ 150 $ 155
Technician $ 120 $ 124
CAD Operator $ 105 $ 108
Project Assistant $ 94 $ 97
Dollar amounts listed are on a per hour basis.
*based on an annual escalation of 3%:
Measurement Equipment and Use of Wilson Ihrig Developed Software
The professional fees for Wilson Ihrig staff include the use of Wilson Ihrig-owned instrumentation
and software. Where special instrumentation must be rented for a project, then the rental charge is
considered a direct expense.
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EXHIBIT D
INSURANCE REQUIREMENTS
CONSULTANTS 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 HEREIN.
REQUIRED TYPE OF COVERAGE REQUIREMENT
OCCURRENCE AGGREGATE
YES
WORKER’S COMPENSATION
EMPLOYER’S LIABILITY STATUTORY
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
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
PROFESSIONAL LIABILITY,
INCLUDING, ERRORS AND
OMISSIONS, MALPRACTICE (WHEN
APPLICABLE), AND NEGLIGENT
PERFORMANCE
ALL DAMAGES $2,000,000
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YES
THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONSULTANT, 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
CONSULTANT AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH
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. FOR GENERAL LIABILITY AND AUTOMOBILE LIABILITY, A CONTRACTUAL LIABILITY
ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONSULTANT’S AGREEMENT TO
INDEMNIFY CITY.
II. THE CONSULTANT MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE
TO THE FOLLOWING: PURCHASINGSUPPORT@CITYOFPALOALTO.ORG
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 CONSULTANT SHALL PROVIDE
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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 CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY
WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.
EVIDENCE OF INSURANCE AND OTHER RELATED NOTICES ARE REQUIRED TO BE
FILED WITH THE CITY OF PALO ALTO AT THE FOLLOWING EMAIL ADDRESS:
PURCHASINGSUPPORT@CITYOFPALOALTO.ORG
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EXHIBIT E
DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS
This Exhibit shall apply only to a contract for public works construction, alteration, demolition, repair or
maintenance work, CITY will not accept a bid proposal from or enter into this Agreement with
CONSULTANT without proof that CONSULTANT and its listed subcontractors are registered with the
California Department of Industrial Relations (“DIR”) to perform public work, subject to limited
exceptions. City requires CONSULTANT and its listed subcontractors, if any, to comply with all
applicable requirements of the California Labor Code including but not limited to Labor Code Sections
1720 through 1861, and all applicable related regulations, including but not limited to Subchapter 3, Title
8 of the California Code of Regulations Section 16000 et seq., as amended from time to time. This Exhibit
E applies in addition to the provisions of Section 26 (Prevailing Wages and DIR Registration for Public
Works Contracts) of the Agreement.
CITY provides notice to CONSULTANT of the requirements of California Labor Code Section 1771.1(a),
which reads:
“A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the
requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract
for public work, as defined in this chapter, unless currently registered and qualified to perform public work
pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a
bid that is authorized by Section 7029.1 of the Business and Professions Code or Section 10164 or 20103.5
of the Public Contract Code, provided the contractor is registered to perform public work pursuant to
Section 1725.5 at the time the contract is awarded.”
This Project is subject to compliance monitoring and enforcement by DIR. All contractors must be
registered with DIR per Labor Code Section 1725.5 in order to submit a bid. All subcontractors must also
be registered with DIR. No contractor or subcontractor may be awarded a contract for public work on a
public works project unless registered with DIR. Additional information regarding public works and
prevailing wage requirements is available on the DIR web site (see e.g. http://www.dir.ca.gov) as amended
from time to time.
CITY gives notice to CONSULTANT and its listed subcontractors that CONSULTANT is required to post
all job site notices prescribed by law or regulation.
CONSULTANT shall furnish certified payroll records directly to the Labor Commissioner (DIR) in
accordance with Subchapter 3, Title 8 of the California Code of Regulations Section 16461 (8 CCR Section
16461).
CITY requires CONSULTANT and its listed subcontractors to comply with the requirements of Labor
Code Section 1776, including but not limited to:
Keep accurate payroll records, showing the name, address, social security number, work classification,
straight time and overtime hours worked each day and week, and the actual per diem wages paid to each
journeyman, apprentice, worker, or other employee employed by, respectively, CONSULTANT and its
listed subcontractors, in connection with the Project.
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The payroll records shall be verified as true and correct and shall be certified and made available for
inspection at all reasonable hours at the principal office of CONSULTANT and its listed subcontractors,
respectively.
At the request of CITY, acting by its Project Manager, CONSULTANT and its listed subcontractors shall
make the certified payroll records available for inspection or furnished upon request to the CITY Project
Manager within ten (10) days of receipt of CITY’s request.
CITY requests CONSULTANT and its listed subcontractors to submit the certified payroll
records to CITY’s Project Manager at the end of each week during the Project.
If the certified payroll records are not provided as required within the 10-day period, then CONSULTANT
and its listed subcontractors shall be subject to a penalty of one hundred dollars ($100.00) per calendar day,
or portion thereof, for each worker, and CITY shall withhold the sum total of penalties from the progress
payment(s) then due and payable to CONSULTANT.
Inform CITY’s Project Manager of the location of CONSULTANT’s and its listed subcontractors’ payroll
records (street address, city and county) at the commencement of the Project, and also provide notice to
CITY’s Project Manager within five (5) business days of any change of location of those payroll records.
Eight (8) hours labor constitutes a legal day’s work. CONSULTANT shall forfeit as a penalty to CITY,
$25.00 for each worker employed in the execution of the Agreement by CONSULTANT or any
subcontractor for each calendar day during which such worker is required or permitted to work more than
eight (8) hours in any one calendar day or forty (40) hours in any one calendar week in violation of the
provisions of the Labor Code, and in particular, Sections 1810 through 1815 thereof, except that work
performed by employees of CONSULTANT or any subcontractor in excess of eight (8) hours per day, or
forty (40) hours during any one week, shall be permitted upon compensation for all hours worked in excess
of eight (8) hours per day, or forty (40) hours per week, at not less than one and one-half (1&1/2) times the
basic rate of pay, as provided in Section 1815.
CONSULTANT shall secure the payment of workers’ compensation to its employees as provided in Labor
Code Sections 1860 and 3700 (Labor Code 1861). CONSULTANT shall sign and file with the CITY a
statutorily prescribed statement acknowledging its obligation to secure the payment of workers’
compensation to its employees before beginning work (Labor Code 1861). CONSULTANT shall post job
site notices per regulation (Labor Code 1771.4(a)(2)).
CONSULTANT shall comply with the statutory requirements regarding employment of apprentices
including without limitation Labor Code Section 1777.5. The statutory provisions will be enforced for
penalties for failure to pay prevailing wages and for failure to comply with wage and hour laws.
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EXHIBIT F
CLAIMS FOR PUBLIC CONTRACT CODE SECTION 9204 PUBLIC WORKS PROJECTS
The provisions of this Exhibit are provided in compliance with Public Contract Code Section 9204; they
provide the exclusive procedures for any claims pursuant to Public Contract Code Section 9204 related to
the Services performed under this Agreement.
1. Claim Definition. “Claim” means a separate demand by the Contractor sent by registered mail or
certified mail with return receipt requested, for one or more of the following:
(A) A time extension, including, without limitation, for relief from damages or penalties for delay
assessed by the City.
(B) Payment by the City of money or damages arising from the Services performed by, or on behalf of,
the Contractor pursuant to the Agreement and payment for which is not otherwise expressly provided
or to which the Contractor is not otherwise entitled.
(C) Payment of an amount that is disputed by the City.
2. Claim Process.
(A) Timing. Any Claim must be submitted to City in compliance with the requirements of this
Exhibit no later than fourteen (14) days following the event or occurrence giving rise to the Claim. This
time requirement is mandatory; failure to submit a Claim within fourteen (14) days will result in its being
deemed waived.
(B) Submission. The Claim must be submitted to City in writing, clearly identified as a “Claim”
submitted pursuant to this Exhibit, and must include reasonable documentation substantiating the Claim.
The Claim must clearly identify and describe the dispute, including relevant references to applicable
portions of the Agreement, and a chronology of relevant events. Any Claim for additional payment must
include a complete, itemized breakdown of all labor, materials, taxes, insurance, and subcontract, or other
costs. Substantiating documentation such as payroll records, receipts, invoices, or the like, must be
submitted in support of each claimed cost. Any Claim for an extension of time or delay costs must be
substantiated with schedule analysis and narrative depicting and explaining claimed time impacts.
(C) Review. Upon receipt of a Claim in compliance with this Exhibit, the City shall conduct a
reasonable review of the Claim and, within a period not to exceed 45 days from receipt, shall provide the
Contractor a written statement identifying what portion of the Claim is disputed and what portion is
undisputed. Upon receipt of a Claim, the City and Contractor may, by mutual agreement, extend the time
period provided in this paragraph 2.
(D) If City Council Approval Required. If the City needs approval from the City Council to provide
the Contractor a written statement identifying the disputed portion and the undisputed portion of the Claim,
and the City Council does not meet within the 45 days or within the mutually agreed to extension of time
following receipt of a Claim sent by registered mail or certified mail, return receipt requested, the City shall
have up to three days following the next duly publicly noticed meeting of the City Council after the 45-day
period, or extension, expires to provide the Contractor a written statement identifying the disputed portion
and the undisputed portion.
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(E) Payment. Any payment due on an undisputed portion of the Claim shall be processed and made
within 60 days after the City issues its written statement. If the City fails to issue a written statement,
paragraph 3, below, shall apply.
3. Disputed Claims
(A) Meet and Confer. If the Contractor disputes the City's written response, or if the City fails to
respond to a Claim submitted pursuant to this Exhibit within the time prescribed, the Contractor may
demand in writing an informal conference to meet and confer for settlement of the issues in dispute. Upon
receipt of a demand in writing sent by registered mail or certified mail, return receipt requested, the City
shall schedule a meet and confer conference within 30 days for settlement of the dispute. Within 10 business
days following the conclusion of the meet and confer conference, if the Claim or any portion of the Claim
remains in dispute, the City shall provide the Contractor a written statement identifying the portion of the
Claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion
of the Claim shall be processed and made within 60 days after the City issues its written statement.
(B) Mediation. Any remaining disputed portion of the Claim, as identified by the Contractor in
writing, shall be submitted to nonbinding mediation, with the City and the Contractor sharing the associated
costs equally. The City and Contractor shall mutually agree to a mediator within 10 business days after the
disputed portion of the Claim has been identified in writing by the Contractor. If the parties cannot agree
upon a mediator, each party shall select a mediator and those mediators shall select a qualified neutral third
party to mediate the disputed portion of the Claim. Each party shall bear the fees and costs charged by its
respective mediator in connection with the selection of the neutral mediator. If mediation is unsuccessful,
the parts of the Claim remaining in dispute shall be subject to any other remedies authorized by the
Agreement and laws.
(i) For purposes of this paragraph 3.B, mediation includes any nonbinding process, including, but
not limited to, neutral evaluation or a dispute review board, in which an independent third party or
board assists the parties in dispute resolution through negotiation or by issuance of an evaluation.
Any mediation utilized shall conform to the timeframes in this section.
(ii) Unless otherwise agreed to by the City and the Contractor in writing, the mediation conducted
pursuant to this section shall excuse any further obligation, if any, under Public Contract Code
Section 20104.4 to mediate after litigation has been commenced.
4. City’s Failure to Respond. Failure by the City to respond to a Claim from the Contractor within
the time periods described in this Exhibit or to otherwise meet the time requirements of this Exhibit shall
result in the Claim being deemed rejected in its entirety. A Claim that is denied by reason of the City's
failure to have responded to a Claim, or its failure to otherwise meet the time requirements of this Exhibit,
shall not constitute an adverse finding with regard to the merits of the Claim or the responsibility or
qualifications of the Contractor.
5. Interest. Amounts not paid in a timely manner as required by this section shall bear interest at
seven (7) percent per annum.
6. Approved Subcontractor Claims. If an approved subcontractor or a lower tier subcontractor
lacks legal standing to assert a Claim against the City because privity of contract does not exist, the
Contractor may present to the City a Claim on behalf of a subcontractor or lower tier subcontractor. A
subcontractor may request in writing, either on his or her own behalf or on behalf of a lower tier
subcontractor, that the Contractor present a Claim for work which was performed by the subcontractor or
DocuSign Envelope ID: ACBEADD7-93A4-4809-9985-4D41F46BA84B
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Page 55 of 55 Professional Services
Rev. Dec.15, 2020
by a lower tier subcontractor on behalf of the subcontractor. The subcontractor requesting that the Claim
be presented to the City shall furnish reasonable documentation to support the Claim. Within 45 days of
receipt of this written request, the Contractor shall notify the subcontractor in writing as to whether the
Contractor presented the claim to the City and, if the Contractor did not present the claim, provide the
subcontractor with a statement of the reasons for not having done so.
7. Waiver of Provisions. A waiver of the rights granted by Public Contract Code Section 9204 is
void and contrary to public policy, provided, however, that (1) upon receipt of a Claim, the parties may
mutually agree to waive, in writing, mediation and proceed directly to the commencement of a civil action
or binding arbitration, as applicable; and (2) the City may prescribe reasonable change order, claim, and
dispute resolution procedures and requirements in addition to the provisions of Public Contract Code
Section 9204, so long as the contractual provisions do not conflict with or otherwise impair the timeframes
and procedures set forth in this section.
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: February 12, 2024
Report #:2309-2048
TITLE
Approval of Two General Services Contracts in the Wastewater Treatment Enterprise Fund: a
Contract with Lystek International Limited in an Amount Not to Exceed $5,322,769 and a
Contract with Synagro-WWT, Inc. in an Amount Not to Exceed $7,617,013, Both for Offsite
Sludge Treatment Services for a Five-Year Term; CEQA status - exempt
RECOMMENDATION
Staff recommends that the City Council:
1. Approve and authorize the City Manager or their designee to execute a contract with
Lystek International Limited (Lystek), in the amount of $5,322,769 for sludge treatment
services for the Regional Water Quality Control Plant (RWQCP) for a term of five years,
beginning April 1, 2024, and ending on March 31, 2029. The contract amount for the
first year of the agreement will be $944,240; and
2. Approve and authorize the City Manager or their designee to execute a contract with
Synagro-WWT, Inc. (Synagro), in the amount of $7,617,013 for sludge treatment
services for the RWQCP for a term of five years, beginning April 1, 2024, and ending on
March 31, 2029. The contract amount for the first year of the agreement will be
$1,107,040.
EXECUTIVE SUMMARY
Staff issued a Request For Proposals for sludge treatment services and recommends contracts
be awarded to Lystek (Attachment A) and Synagro (Attachment B). Wastewater treatment is
managed by the RWQCP within the Public Works Department. Since 2018, the City has utilized
contracted services for sludge treatment. Selection and award of general services agreements
has been through formal solicitation of proposals, review of costs, and assessment of quality of
services.
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BACKGROUND
1 as a key to
reducing carbon dioxide emissions by over 12,000 metric tons annually. The incinerators
operated from 1972 until their replacement in March 2019 with a new sludge dewatering and
truck loadout facility. Sludge hauling and treatment contracts were implemented to address
sludge treatment after incinerator retirement. Since March 2019, the sludge has been hauled to
two different regional treatment facilities. To prepare for hauling and treatment, the City
solicited requests for proposals for sludge hauling and treatment services in 2017. Five-year
contracts for sludge treatment services with Lystek and Synagro were approved on June 18,
2018, and these contracts have terms through March 31, 2024. To transport sludge to the
treatment facilities, City Council approved a three-year contract2 with Denali Water Solutions,
LLC (Denali) on June 18, 2018 in an amount not to exceed $2,181,000 for sludge hauling
services through March 31, 2022. Denali began daily sludge hauling from the dewatering facility
on March 19, 2019. A new contract3 for sludge hauling, again with Denali, was approved on
January 24, 2022 for three more years of hauling services beginning April 1, 2022 and ending
March 31, 2025.
Lystek
Lystek is a corporation and has a sludge treatment facility approximately 82 miles from the
RWQCP, located at the Fairfield-Suisun Sewer District (FSSD) site under a 20-year lease that
ends January 1, 2036. FSSD is a special purpose district. Through July 2023, Lystek has treated
33,532 wet tons of sludge from Palo Alto. Lystek has also treated sludge from the City of San
Francisco, East Bay Municipal Utility District, Marin County, City of Benicia, City of Petaluma,
City of Santa Rosa, City of South San Francisco, City of Healdsburg, and other Bay Area agencies.
Lystek is currently processing about 200 wet tons per day of trucked-in sludge from multiple
agencies; Lystek’s total processing capacity of 150,000 annual wet tons is more than sufficient
for Palo Alto’s sludge. Lystek uses a low-temperature hydrolysis process involving high-speed
shearing, alkali, and low pressure, low-temperature steam injection. Lystek’s goal is to divert
more than 95 percent of the received Palo Alto sludge to make a product (branded as
LysteMize) that would be added to the FSSD anaerobic digesters. LysteMize will help FSSD
reduce volatile solids, improve biogas and electricity yields, decrease residual biosolids
volumes, and reduce FSSD’s demand from PG&E for both natural gas and electricity by meeting
onsite electric energy demands when combusting the extra biogas in FSSD’s engine generators.
The final product of all sludge sent to Lystek and from the FSSD anaerobic digesters is a USEPA
1 City Council, December 11, 2017; SR # 8487
https://paloalto.admin.opencities.com/InformationManagement/FileAdmin.aspx#&&FH=File_23152553-c158-
4dfe-9795-71bc0ee63c4e
2 City Council, June 18, 2018; SR # 8913
3 City Council, January 24, 2022; SR # 13520, pg. 17
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Class A product (i.e., Lystek’s LysteGro product, which is a registered fertilizer with California
Department of Food and Agriculture). LysteGro is land applied year-round within 100 miles of
the Lystek facility.
Synagro
Synagro is a corporation and operates several sludge composting facilities in the US including
the El Nido Central Valley Composting (CVC) facility located in Dos Palos, approximately 114
miles from RWQCP. CVC uses an open windrow processing method that combines RWQCP
sludge with a bulking agent (primarily green waste and wood waste). High temperature aerobic
composting converts RWQCP sludge into a USEPA Class A product that is sold in bulk to the
region’s agricultural market; the product is typically land applied within 30 miles of the Synagro
CVC facility. The CVC facility is permitted by CalRecycle to handle up to 100,000 tons per year of
feedstock. Through July 2023, Synagro has treated 47,267 wet tons of Palo Alto sludge. CVC has
also serviced the City of Fresno, City of Sunnyvale, Silicon Valley Clean Water in Redwood City,
City of San Francisco, Union Sanitary District in Union City, South County Regional Wastewater
Authority serving Gilroy and Morgan Hill, and the Delta Diablo Sanitation District in Antioch.
ANALYSIS
Table 1: Sludge Production Estimates
Dates
Estimated Minimum Sludge
Production
Estimated Maximum
Sludge Production
Estimated Annual
Production Increase
4/1/24 – 3/31/25 16,500 20,600 --
4/1/25 – 3/31/26 16,500 21,424 4%
4/1/26 – 3/31/27 16,500 22,281 4%
4/1/27 – 3/31/28 16,500 25,089 4% + 1917 tons1
4/1/28 – 3/31/29 16,500 28,754 4% + 2661 tons1
1Note: Additional sludge production is expected with upgraded Secondary Treatment system, which will produce
an estimated 34% additional waste activated sludge (WAS) or about 10% additional total sludge production
beginning on an estimated date of 6/9/2027; consequently, the ratios of primary and WAS sludge listed in the
scope of work’s Attachment B, Exhibit A may change slightly in years 4 and 5 of the contract.
Proposal RFP# 187745
Proposal Name: Sludge Treatment Services for the
Regional Water Quality Control Plant
Proposed Length of Project 60 Months
Number of Vendors Notified 2708
Number of Proposal Packages Downloaded 33
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The evaluation committee, composed of representatives from the Public Works Department,
carefully reviewed and assessed the two proposals using standard evaluation criteria. The
committee carefully reviewed each firm's qualifications and submittal in response to the
criteria identified in the RFP. The providers not proposing do not have the capacity or ability to
take Palo Alto’s sludge during the five-year contract term.
Staff recommends award of contracts to both Synagro and Lystek for diversification of options
consistent with current practice. Both proposers have provided good service since the start of
regular services in the prior contract since March 2019. The contracted minimum annual
delivery in the contracted scope of work is 5,800 and 10,000 tons per year to Lystek and
Synagro, respectively. Staff contacted Lystek and explored lowering the Lystek minimum
tonnage below 5,800 tons per year, which is a reduction from the current contract’s minimum
to Lystek of 6,500 tons per year. Further reduction in the Lystek minimum annual delivery
requirement is not an option. Surplus sludge production above the Lystek minimum will be
directed to the lower cost Synagro facility.
FISCAL/RESOURCE IMPACT
The five-year cost for the sludge treatment services contract in comparison to the prior five-year
contract has increased by $5.9 million.
COMPARISON OF CONTRACT COSTS (PROPOSED AND EXISTING)
2024-2029 Cost Proposal Total, Lystek & Synagro $12,939,782
2019-2024 Cost Proposal Total, Lystek & Synagro $7,064,000
Five Year Total Cost Increase $5,875,782
($1.2M annually)
The unit price for both facilities will be increasing on April 1, 2024 as follows:
•Lystek increases from $98.55/wet ton to $148.00/wet ton; and
•Synagro increases from $40.85/wet ton to $68.00/wet ton.
Vendors have indicated that the increase in unit price between the two five-year general
service contracts is because of (a) greater regional demands on offsite sludge treatment
capacity, (b) greater demands on capacity because of regulatory changes due to SB 1383 (2016)
restricting disposal of biosolids in landfills as alternative daily cover, (c) higher transportation
Public Link to Solicitation https://procurement.opengov.com/portal/palo-alto-
ca/projects/51100
Total Days to Respond to Proposal 53 days
Mandatory Pre-proposal Meeting Tuesday, July 25, 2023 at 10:00 a.m. PST
Number of Providers at Pre-proposal Meeting 6 providers
Number of Proposals Received 2 proposals received
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expenses for the offsite facilities to haul the biosolids fertilizer and biosolids compost to its end
use, (d) higher fuel costs, and (e) higher chemical costs, as much as a 100% increase, for
Lystek’s process.
4 and 3% per year (Lystek)5.
Actual San Francisco CPI-U inflation over a similar period has averaged 3.92% (August 2018 to
August 2023). Said another way, Synagro assumed 10% inflation but about 20% was realized in
the first 5-year contract; likewise, Lystek assumed 16% inflation but about 20% was realized.
Both proposers reflect a greater uncertainty in the next five-year contract for the 12-month
price adjustments (i.e., 4.0% to 6.0%).
Table 2: Lystek and Synagro Treatment Facility Unit Prices US $/wet ton
Facility
Current
Contract
11/28/23 -
3/31/24
Year 1
4/1/24-
3/31/25
Year 2
4/1/25-
3/31/26
Year 3
4/1/26-
3/31/27
Year 4
4/1/27-
3/31/28
Year 5
4/1/28-
3/31/29 Comment
Lystek $98.55 $148.00 $156.88 $166.29 $176.27 $186.85
4500 tons May to
October;
1300 tons
November to April
Synagro $40.85 $68.00 $72.08 $76.40 $80.99 $85.85 10,000 tons per
year minimum
Notes:
1. Lystek 12-month price increase is 6.0%, 5.0%, 4.0%, and 4.0% per year for contract years 2, 3, 4, and 5,
respectively.
2. Synagro 12-month price increase is 4.8% per year for contract years 2, 3, 4, and 5.
3. For purposes of calculating not-to-exceed amounts and allow for diversification in force majeure
situations, a 10% adder is included; the Lystek annual amount is set at 6,380 wet tons per year and
Synagro annual amount is set at 14,800 tons in contract year one rising to 22,954 tons in contract year
five
4 City Council, June 18, 2018; SR 8913 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-
reports/reports/city-manager-reports-cmrs/year-archive/2018/id-8913-approve-three-public-works-contracts-for-
sludge-hauling-and-offsite-treatment-services.pdf
5 City Council, June 18, 2018; SR 8913 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-
reports/reports/city-manager-reports-cmrs/year-archive/2018/id-8913-approve-three-public-works-contracts-for-
sludge-hauling-and-offsite-treatment-services.pdf
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Unit prices govern each agreement up to the authorized not to exceed amounts and pursuant
to tonnage minimums as well as actual production of RWQCP sludge. A force majeure may limit
sludge disposal options (e.g., damaged roadways, earthquake damage, process breakdowns,
new regulatory constraints, etc.). In these two contracts, Palo Alto has the benefit of diversified
disposal options at Lystek and Synagro. The RWQCP’s 24/7 production of sludge requires a
disposal option be active and available within one to two days, depending on RWQCP’s
available onsite sludge storage.
6 in October 2019, which was completed six months after startup
of the new sludge dewatering and truck loadout facility. The 2019 Biosolids Facilities Plan
update continued to show that offsite treatment was the best option in the interim.
7 (LRFP) was approved in 20128. The RWQCP is in the process of
updating the LRFP. Consultant selection for the LRFP Update is expected to be approved by City
Council in approximately May 2024. The LRFP Update will include a task to update the 2019
Biosolids Facilities Plan Update; the LRFP Update and the biosolids treatment facility analysis
will be completed by approximately December 2026. The results of that evaluation will inform
the future efficiency, environmental benefit, and cost effectiveness of sludge hauling and
offsite sludge treatment services. As requested by City Council at the August 21, 2023 meeting
on property acquisition9 adjacent to the RWQCP, the evaluation will include an analysis of the
need for the Measure “E” site adjacent to the RWQCP. Finally, the San Jose Water Pollution
Control Plant is evaluating proposals through about the end of 2025 for a privately constructed
6 Palo Alto Regional Water Quality Control Plant Biosolids Facility Plan Update;
https://www.cityofpaloalto.org/files/assets/public/v/1/public-works/water-quality-control-plant/sludge-
dewatering-building/finaldraft_palo_alto_bfp_update.pdf?t=47012.05
7 The Long Range Facilities Plan for the Regional Water Quality Control Plant Final Report
https://www.cityofpaloalto.org/files/assets/public/v/1/public-works/water-quality-control-plant/lrfp-final-report-
08-2012.pdf
8 City Council, July 2, 2012; SR 2914 https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-
reports/reports/city-manager-reports-cmrs/year-archive/2012/id-2914.pdf
9 City Council, August 21, 2023; SR 2304-1389, Item 7,
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13014
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and operated biosolids facility at the San Jose wastewater plant site (i.e., about eight acres of
land set aside for this operation)10. This potential facility would be operational in 2029 at the
earliest; the request for proposals indicated that the contracted operator may be open to
imported feedstock from other agencies such as Palo Alto. Imported feedstock would likely only
be received after successfully proven operation treating San Jose biosolids and if the private
operator had surplus capacity for imported feedstock. The anticipated San Jose treatment
facility option will also be evaluated in the LRFP Update.
Table 3: Sludge Hauling and Treatment Cost Summary by Fiscal Year
FY Lystek Synagro
Sludge Treatment
Cost Total
Denali
(sludge hauling)
Sludge Hauling and
Treatment Cost Total
2024
(last 3 months)$279,474 $254,685 $534,159 $176,583 $710,742
2025 $961,008 $1,138,564 $2,099,573 $727,470 $2,827,043
2026 $1,018,669 $1,273,875 $2,292,544 $780,218 $3,072,762
2027 $1,079,789 $1,465,087 $2,544,876 $854,721 $3,399,598
2028 $1,144,576 $1,830,157 $2,974,733 $1,000,986 $3,975,719
2029
(first 9 months) $839,252 $1,654,645 $2,493,897 $852,443 $3,346,340
Total $5,322,769 $7,617,013 $ 12,939,782 $ 4,392,422 $17,332,204
10 San Jose City Council, October 24, 2023; San Jose City Council Agenda File 23-1418, Item 2.9,
https://sanjose.legistar.com/View.ashx?M=F&ID=12367407&GUID=C7666A67-143D-42FE-9A5D-43DBF97ED1D6
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Table 4: Sludge Treatment Cost Summary by Contract Year
Contract Year Lystek Synagro Lystek + 10%Synagro + 10%
1 $858,400 $1,006,400 $944,240 $1,107,040
2 $909,904 $1,126,178 $1,000,894 $1,238,796
3 $964,498 $1,259,224 $1,060,948 $1,385,147
4 $1,022,368 $1,562,195 $1,124,605 $1,718,414
5 $1,083,710 $1,970,560 $1,192,081 $2,167,616
Total $4,838,881 $6,924,557 $5,322,769 $7,617,013
STAKEHOLDER ENGAGEMENT
RFP 187745 was issued in on June 21, 2023 for further continuance of sludge treatment
services. The evaluation committee for this RFP included staff from the Public Works
Department under the guidance of the City’s Purchasing and Contracts Administration Division.
ENVIRONMENTAL REVIEW
City Council action on this item is exempt from review under the California Environmental
Quality Act (CEQA) in the proposed contracts for sludge dewatering and hauling since these are
existing operations at the RWQCP. CEQA Guidelines section 15301.
ATTACHMENTS
Attachment A: Contract C24187745A with Lystek International Limited
Attachment B: Contract C24187745B with Synagro-WWT, Inc.
Attachment C: Key Terms
APPROVED BY:
Brad Eggleston, Public Works Director
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City of Palo Alto General Services Agreement 1 Rev. March 29, 2018
CITY OF PALO ALTO CONTRACT NO. C24187745A
GENERAL SERVICES AGREEMENT
THIS AGREEMENT made and entered into on the 12th day of February, 2024, by and
between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”),
and LYSTEK INTERNATIONAL LIMITED, a California corporation, located at 1014
Chadbourne Road, Fairfield, CA 94534, Telephone Number: 707-419-0084
(“CONTRACTOR”). In consideration of their mutual covenants, the parties hereto agree
as follows:
1. SERVICES. CONTRACTOR shall provide or furnish the services (the “Services”)
described in the Scope of Services, attached at Exhibit A.
2. EXHIBITS. The following exhibits are attached to and made a part of this
Agreement:
“A” - Scope of Services
“A-1” – Palo Alto Sludge Characteristics
“B” - Schedule of Performance
“C” – Schedule of Fees
“D” - Insurance Requirements
CONTRACT IS NOT COMPLETE UNLESS ALL INDICATED EXHIBITS ARE ATTACHED.
3. TERM.
The term of this Agreement is from April 1, 2024 to March 31, 2029 inclusive,
subject to the provisions of Sections R and W of the General Terms and Conditions.
4. SCHEDULE OF PERFORMANCE. CONTRACTOR shall complete the Services within
the term of this Agreement in a reasonably prompt and timely manner based upon
the circumstances and direction communicated to CONTRACTOR, and if
applicable, in accordance with the schedule set forth in the Schedule of
Performance, attached at Exhibit B. Time is of the essence in this Agreement.
5. COMPENSATION FOR ORIGINAL TERM. CITY shall pay and CONTRACTOR agrees
to accept as not-to-exceed compensation for the full performance of the Services
and reimbursable expenses, if any:
The total maximum lump sum compensation of dollars ($ );
OR
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International Limited
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City of Palo Alto General Services Agreement 2 Rev. March 29, 2018
The sum of dollars ($ ) per hour, not to exceed a total
maximum compensation amount of dollars ($ ); OR
A sum calculated in accordance with the fee schedule set forth at Exhibit
C, not to exceed a total maximum compensation amount of five million
three hundred twenty-two thousand seven hundred sixty-nine dollars
($5,322,769.00).
CONTRACTOR agrees that it can perform the Services for an amount not to exceed
the total maximum compensation set forth above. Any hours worked or services
performed by CONTRACTOR for which payment would result in a total exceeding
the maximum amount of compensation set forth above for performance of the
Services shall be at no cost to CITY.
CITY has set aside the sum of dollars ($ ) for Additional
Services. CONTRACTOR shall provide Additional Services only by
advanced, written authorization from the City Manager or designee.
CONTRACTOR, at the CITY’s request, shall submit a detailed written
proposal including a description of the scope of services, schedule, level of
effort, and CONTRACTOR’s proposed maximum compensation, including
reimbursable expense, for such services. Compensation shall be based on
the hourly rates set forth above or in Exhibit C (whichever is applicable), or
if such rates are not applicable, a negotiated lump sum. CITY shall not
authorize and CONTRACTOR shall not perform any Additional Services for
which payment would exceed the amount set forth above for Additional
Services. Payment for Additional Services is subject to all requirements and
restrictions in this Agreement.
6. COMPENSATION DURING ADDITIONAL TERMS.
CONTRACTOR’S compensation rates for each additional term shall be the
same as the original term; OR
CONTRACTOR’s compensation rates shall be adjusted effective on the
commencement of each Additional Term. The lump sum compensation
amount, hourly rates, or fees, whichever is applicable as set forth in section
5 above, shall be adjusted by a percentage equal to the change in the
Consumer Price Index for Urban Wage Earners and Clerical Workers for the
San Francisco-Oakland- San Jose area, published by the United States
Department of Labor Statistics (CPI) which is published most immediately
preceding the commencement of the applicable Additional Term, which
shall be compared with the CPI published most immediately preceding the
commencement date of the then expiring term. Notwithstanding the
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International Limited
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City of Palo Alto General Services Agreement 3 Rev. March 29, 2018
foregoing, in no event shall CONTRACTOR’s compensation rates be
increased by an amount exceeding five percent of the rates effective
during the immediately preceding term. Any adjustment to
CONTRACTOR’s compensation rates shall be reflected in a written
amendment to this Agreement.
7. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS”. For purposes of this
Section 7, a “9204 Public Works Project” means the erection, construction,
alteration, repair, or improvement of any public structure, building, road, or other
public improvement of any kind. Public Contract Code Section 9204 mandates
certain claims procedures for Public Works Projects.
This project is not a 9204 Public Works Project.
8. INVOICING. Send all invoices to CITY, Attention: Project Manager. The Project
Manager is: James Allen, Dept.: Public Works, Telephone: 650-329-2243, Email:
rwqcp.invoices@cityofpaloalto.org. Invoices shall be submitted in arrears for
Services performed. Invoices shall not be submitted more frequently than
monthly. Invoices shall provide a detailed statement of Services performed during
the invoice period and are subject to verification by CITY. CITY shall pay the
undisputed amount of invoices within 30 days of receipt.
GENERAL TERMS AND CONDITIONS
A. ACCEPTANCE. CONTRACTOR accepts and agrees to all terms and conditions of
this Agreement. This Agreement includes and is limited to the terms and
conditions set forth in sections 1 through 8 above, these general terms and
conditions and the attached exhibits.
B. QUALIFICATIONS. CONTRACTOR represents and warrants that it has the expertise
and qualifications to complete the services described in Section 1 of this
Agreement, entitled “SERVICES,” and that every individual charged with the
performance of the services under this Agreement has sufficient skill and
experience and is duly licensed or certified, to the extent such licensing or
certification is required by law, to perform the Services. CITY expressly relies on
CONTRACTOR’s representations regarding its skills, knowledge, and certifications.
CONTRACTOR shall perform all work in accordance with generally accepted
business practices and performance standards of the industry, including all
federal, state, and local operation and safety regulations.
C. INDEPENDENT CONTRACTOR. It is understood and agreed that in the
performance of this Agreement, CONTRACTOR and any person employed by
CONTRACTOR shall at all times be considered an independent CONTRACTOR and
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City of Palo Alto General Services Agreement 4 Rev. March 29, 2018
not an agent or employee of CITY. CONTRACTOR shall be responsible for
employing or engaging all persons necessary to complete the work required under
this Agreement.
D. SUBCONTRACTORS. CONTRACTOR may not use subcontractors to perform any
Services under this Agreement unless CONTRACTOR obtains prior written consent
of CITY. CONTRACTOR shall be solely responsible for directing the work of
approved subcontractors and for any compensation due to subcontractors.
E. TAXES AND CHARGES. CONTRACTOR shall be responsible for payment of all taxes,
fees, contributions or charges applicable to the conduct of CONTRACTOR’s
business.
F. COMPLIANCE WITH LAWS. CONTRACTOR shall in the performance of the Services
comply with all applicable federal, state and local laws, ordinances, regulations,
and orders.
G. PALO ALTO MINIMUM WAGE ORDINANCE. CONTRACTOR shall comply with all
requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum
Wage), as it may be amended from time to time. In particular, for any employee
otherwise entitled to the State minimum wage, who performs at least two (2)
hours of work in a calendar week within the geographic boundaries of the City,
CONTRACTOR shall pay such employees no less than the minimum wage set forth
in Palo Alto Municipal Code section 4.62.030 for each hour worked within the
geographic boundaries of the City of Palo Alto. In addition, CONTRACTOR shall
post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with
Palo Alto Municipal Code section 4.62.060.
H. DAMAGE TO PUBLIC OR PRIVATE PROPERTY. CONTRACTOR shall, at its sole
expense, repair in kind, or as the City Manager or designee shall direct, any
damage to public or private property that occurs in connection with
CONTRACTOR’s performance of the Services. CITY may decline to approve and
may withhold payment in whole or in part to such extent as may be necessary to
protect CITY from loss because of defective work not remedied or other damage
to the CITY occurring in connection with CONTRACTOR’s performance of the
Services. CITY shall submit written documentation in support of such withholding
upon CONTRACTOR’s request. When the grounds described above are removed,
payment shall be made for amounts withheld because of them.
I. WARRANTIES. CONTRACTOR expressly warrants that all services provided under
this Agreement shall be performed in a professional and workmanlike manner in
accordance with generally accepted business practices and performance
standards of the industry and the requirements of this Agreement. CONTRACTOR
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City of Palo Alto General Services Agreement 5 Rev. March 29, 2018
expressly warrants that all materials, goods and equipment provided by
CONTRACTOR under this Agreement shall be fit for the particular purpose
intended, shall be free from defects, and shall conform to the requirements of this
Agreement. CONTRACTOR agrees to promptly replace or correct any material or
service not in compliance with these warranties, including incomplete, inaccurate,
or defective material or service, at no further cost to CITY. The warranties set
forth in this section shall be in effect for a period of one year from completion of
the Services and shall survive the completion of the Services or termination of this
Agreement.
J. MONITORING OF SERVICES. CITY may monitor the Services performed under this
Agreement to determine whether CONTRACTOR’s work is completed in a
satisfactory manner and complies with the provisions of this Agreement.
K. CITY’S PROPERTY. Any reports, information, data or other material (including
copyright interests) developed, collected, assembled, prepared, or caused to be
prepared under this Agreement will become the property of CITY without
restriction or limitation upon their use and will not be made available to any
individual or organization by CONTRACTOR or its subcontractors, if any, without
the prior written approval of the City Manager.
L. AUDITS. CONTRACTOR agrees to permit CITY and its authorized representatives
to audit, at any reasonable time during the term of this Agreement and for three
(3) years from the date of final payment, CONTRACTOR’s records pertaining to
matters covered by this Agreement. CONTRACTOR agrees to maintain accurate
books and records in accordance with generally accepted accounting principles for
at least three (3) following the terms of this Agreement.
M. 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.
N. INSURANCE. CONTRACTOR, at its sole cost, shall purchase and maintain in full
force during the term of this Agreement, the insurance coverage described at
Exhibit D. Insurance must be provided by companies with a Best’s Key Rating of A-
:VII or higher and which are otherwise acceptable to CITY’s Risk Manager. The Risk
Manager must approve deductibles and self-insured retentions. In addition, all
policies, endorsements, certificates and/or binders are subject to approval by the
Risk Manager as to form and content. CONTRACTOR shall obtain a policy
endorsement naming the City of Palo Alto as an additional insured under any
general liability or automobile policy. CONTRACTOR shall obtain an endorsement
stating that the insurance is primary coverage and will not be canceled or
materially reduced in coverage or limits until after providing 30 days prior written
notice of the cancellation or modification to the Risk Manager. CONTRACTOR shall
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City of Palo Alto General Services Agreement 6 Rev. March 29, 2018
provide certificates of such policies or other evidence of coverage satisfactory to
the Risk Manager, together with the required endorsements and evidence of
payment of premiums, to CITY concurrently with the execution of this Agreement
and shall throughout the term of this Agreement provide current certificates
evidencing the required insurance coverages and endorsements to the Risk
Manager. CONTRACTOR shall include all subcontractors as insured under its
policies or shall obtain and provide to CITY separate certificates and endorsements
for each subcontractor that meet all the requirements of this section. The
procuring of such required policies of insurance shall not operate to limit
CONTRACTOR’s liability or obligation to indemnify CITY under this Agreement.
O. HOLD HARMLESS. To the fullest extent permitted by law and without limitation
by the provisions of section N relating to insurance, CONTRACTOR shall indemnify,
defend and hold harmless CITY, its Council members, officers, employees and
agents from and against any and all demands, claims, injuries, losses, or liabilities
of any nature, including death or injury to any person, property damage or any
other loss and including without limitation all damages, penalties, fines and
judgments, associated investigation and administrative expenses and defense
costs, including, but not limited to reasonable attorney’s fees, courts costs and
costs of alternative dispute resolution), arising out of, or resulting in any way from
or in connection with the performance of this Agreement. CONTRACTOR’s
obligations under this Section apply regardless of whether or not a liability is
caused or contributed to by any negligent (passive or active) act or omission of
CITY, except that CONTRACTOR shall not be obligated to indemnify for liability
arising from the sole negligence or willful misconduct of CITY. The acceptance of
the Services by CITY shall not operate as a waiver of the right of indemnification.
The provisions of this Section survive the completion of the Services or
termination of this Agreement.
P. NON-DISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510,
CONTRACTOR certifies that in the performance of this Agreement, it shall not
discriminate in the employment of any person because of the race, skin color,
gender, age, religion, disability, national origin, ancestry, sexual orientation,
housing status, marital status, familial status, weight or height of such person.
CONTRACTOR acknowledges that it has read and understands the provisions of
Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination
Requirements and the penalties for violation thereof, and agrees to meet all
requirements of Section 2.30.510 pertaining to nondiscrimination in employment.
Q. WORKERS' COMPENSATION. CONTRACTOR, by executing this Agreement,
certifies that it is aware of the provisions of the Labor Code of the State of Califor-
nia which require every employer to be insured against liability for workers'
compensation or to undertake self-insurance in accordance with the provisions of
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City of Palo Alto General Services Agreement 7 Rev. March 29, 2018
that Code, and certifies that it will comply with such provisions, as applicable,
before commencing and during the performance of the Services.
R. TERMINATION.
1. Termination for Default.
a. Either party may terminate this Agreement in the event of a substantial failure
by the other party to perform any of its material obligations under this
Agreement; provided, however, that the party alleged to be in default shall be
given an opportunity to cure the default as provided herein. Notice of intent
to terminate shall be in writing and shall be given as provided in Section S of
this Agreement. The notice shall describe the reasons for the intended
termination. This Agreement shall not be terminated if the party alleged to be
in default gives written notice of its intent to cure the default within five (5)
days after service of the notice of intended termination, and, in addition, fully
cures the default within thirty (30) days after service of the notice of intended
termination; provided that, if the nature of the breach is such that it will
reasonably require more than 30 days to cure, the party alleged to be in
default shall not be in default so long as it promptly commences the cure and
diligently proceeds to completion of the cure within 60 days after notice, and
provided that neither notice nor opportunity to cure applies to events
described in subsection (b) below.
b. CITY may immediately terminate this Agreement if prior to CITY meeting its
annual maximum, if any, for sludge to be treated by CONTRACTOR,
CONTRACTOR ceases to accept sludge from the City for a period of 5
consecutive days (or on a total of 15 days during any calendar year) for any
reason within the CONTRACTOR’s reasonable control.
c. CITY’s withholding of payment due to an alleged breach shall not constitute a
substantial failure to perform its material obligations under subsection (a)
above.
d. In the event of a termination for default, both parties shall have all the rights
and remedies provided by law.
2. Termination for Convenience.
The City Manager may terminate this Agreement without cause by giving thirty
(30) days’ prior written notice thereof to CONTRACTOR..
3. General Provisions
Upon receipt of such notice of termination, CONTRACTOR shall immediately
discontinue performance. CITY shall pay CONTRACTOR for services satisfactorily
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City of Palo Alto General Services Agreement 8 Rev. March 29, 2018
performed up to the effective date of termination. If the termination is for cause,
CITY may deduct from such payment the amount of actual damage, if any,
sustained by CITY due to CONTRACTOR’s failure to perform its material obligations
under this Agreement. Upon termination, CONTRACTOR shall immediately deliver
to the City Manager any and all copies of studies, sketches, drawings,
computations, and other material or products, whether or not completed,
prepared by CONTRACTOR or given to CONTRACTOR, in connection with this
Agreement. Such materials shall become the property of CITY.
S. ASSIGNMENTS/CHANGES. This Agreement binds the parties and their successors
and assigns to all covenants of this Agreement. This Agreement shall not be
assigned or transferred without the prior written consent of CITY. No
amendments, changes or variations of any kind are authorized without the written
consent of CITY.
T. CONFLICT OF INTEREST. In accepting this Agreement, CONTRACTOR covenants
that it presently has no interest, and will not acquire any interest, direct or
indirect, financial or otherwise, which would conflict in any manner or degree with
the performance of this Agreement. CONTRACTOR further covenants that, in the
performance of this Agreement, it will not employ any person having such an
interest. CONTRACTOR certifies that no CITY officer, employee, or authorized
representative has any financial interest in the business of CONTRACTOR and that
no person associated with CONTRACTOR has any interest, direct or indirect, which
could conflict with the faithful performance of this Agreement. CONTRACTOR
agrees to advise CITY if any conflict arises.
U. GOVERNING LAW. This Agreement shall be governed and interpreted by the laws
of the State of California.
V. ENTIRE AGREEMENT. This Agreement, including all exhibits, represents the entire
agreement between the parties with respect to the services that may be the
subject of this Agreement. Any variance in the exhibits does not affect the validity
of the Agreement and the Agreement itself controls over any conflicting provisions
in the exhibits. This Agreement supersedes all prior agreements, representations,
statements, negotiations and undertakings whether oral or written.
W. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the
Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement
will terminate without any penalty (a) at the end of any fiscal year in the event
that funds are not appropriated for the following fiscal year, or (b) at any time
within a fiscal year in the event that funds are only appropriated for a portion of
the fiscal year and funds for this Agreement are no longer available. This Section
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City of Palo Alto General Services Agreement 9 Rev. March 29, 2018
shall take precedence in the event of a conflict with any other covenant, term,
condition, or provision of this Agreement.
X. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE
REQUIREMENTS. CONTRACTOR shall comply with CITY’s Environmentally
Preferred Purchasing policies which are available at CITY’s Purchasing Division,
which are incorporated by reference and may be amended from time to time.
CONTRACTOR shall comply with waste reduction, reuse, recycling and disposal
requirements of CITY’s Zero Waste Program. Zero Waste best practices include
first minimizing and reducing waste; second, reusing waste and third, recycling or
composting waste. In particular, CONTRACTOR shall comply with the following
zero waste requirements:
• All printed materials provided by CONTRACTOR to CITY generated from a
personal computer and printer including but not limited to, proposals,
quotes, invoices, reports, and public education materials, shall be double-
sided and printed on a minimum of 30% or greater post-consumer content
paper, unless otherwise approved by CITY’s Project Manager. Any
submitted materials printed by a professional printing company shall be a
minimum of 30% or greater post-consumer material and printed with
vegetable based inks.
• Goods purchased by Contractor on behalf of CITY shall be purchased in
accordance with 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 Division’s
office.
• Reusable/returnable pallets shall be taken back by CONTRCATOR, at no
additional cost to CITY, for reuse or recycling. CONTRACTOR shall provide
documentation from the facility accepting the pallets to verify that pallets
are not being disposed.
Y. AUTHORITY. The individual(s) executing this Agreement on behalf of the parties
represent and warrant that they have the legal capacity and authority to do so on
behalf of their respective legal entities.
Z. PREVAILING WAGES
This Project is not subject to prevailing wages. CONTRACTOR is not required to
pay prevailing wages in the performance and implementation of the Project in
accordance with SB 7, if the Agreement is not a public works contract, if
Agreement does not include a public works construction project of more than
$25,000, or the Agreement does not include a public works alteration, demolition,
repair, or maintenance (collectively, ‘improvement’) project of more than
$15,000.
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City of Palo Alto General Services Agreement 10 Rev. March 29, 2018
AA. DIR REGISTRATION. In regard to any public work construction, alteration,
demolition, repair or maintenance work, CITY will not accept a bid proposal from
or enter into this Agreement with CONTRACTOR without proof that CONTRACTOR
and its listed subcontractors are registered with the California Department of
Industrial Relations (“DIR”) to perform public work, subject to limited exceptions.
City requires CONTRACTOR and its listed subcontractors to comply with the
requirements of SB 854.
CITY provides notice to CONTRACTOR of the requirements of California Labor
Code section 1771.1(a), which reads:
“A contractor or subcontractor shall not be qualified to bid on, be listed in a bid
proposal, subject to the requirements of Section 4104 of the Public Contract Code,
or engage in the performance of any contract for public work, as defined in this
chapter, unless currently registered and qualified to perform public work pursuant
to Section 1725.5. It is not a violation of this section for an unregistered contractor
to submit a bid that is authorized by Section 7029.1 of the Business and
Professions Code or Section 10164 or 20103.5 of the Public Contract Code,
provided the contractor is registered to perform public work pursuant to Section
1725.5 at the time the Agreement is awarded.”
CITY gives notice to CONTRACTOR and its listed subcontractors that CONTRACTOR
is required to post all job site notices prescribed by law or regulation and
CONTRACTOR is subject to SB 854-compliance monitoring and enforcement by
DIR.
CITY requires CONTRACTOR and its listed subcontractors to comply with the
requirements of Labor Code section 1776, including:
Keep accurate payroll records, showing the name, address, social security
number, work classification, straight time and overtime hours worked each day
and week, and the actual per diem wages paid to each journeyman, apprentice,
worker, or other employee employed by, respectively, CONTRACTOR and its listed
subcontractors, in connection with the Project.
The payroll records shall be verified as true and correct and shall be certified and
made available for inspection at all reasonable hours at the principal office of
CONTRACTOR and its listed subcontractors, respectively.
At the request of CITY, acting by its project manager, CONTRACTOR and its listed
subcontractors shall make the certified payroll records available for inspection or
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City of Palo Alto General Services Agreement 11 Rev. March 29, 2018
furnished upon request to the project manager within ten (10) days of receipt of
CITY’s request.
[For state- and federally-funded projects] CITY requests CONTRACTOR and
its listed subcontractors to submit the certified payroll records to the
project manager at the end of each week during the Project.
If the certified payroll records are not produced to the project manager within the
10-day period, then CONTRACTOR and its listed subcontractors shall be subject to
a penalty of one hundred dollars ($100.00) per calendar day, or portion thereof,
for each worker, and CITY shall withhold the sum total of penalties from the
progress payment(s) then due and payable to CONTRACTOR.
Inform the project manager of the location of CONTRACTOR’s and its listed
subcontractors’ payroll records (street address, city and county) at the
commencement of the Project, and also provide notice to the project manager
within five (5) business days of any change of location of those payroll records.
BB. CONTRACT TERMS. All unchecked boxes do not apply to this Agreement. In the
case of any conflict between the terms of this Agreement and the exhibits hereto
or CONTRACTOR’s proposal (if any), the Agreement shall control. In the case of
any conflict between the exhibits hereto and CONTRACTOR’s proposal, the
exhibits shall control.
CC. FORCE MAJEURE. Neither Party shall be in default of its obligations under this
Agreement in the event, and for so long as, it is impossible or extremely
impracticable for it to perform its obligations due to an “act of God” (including,
but not limited to, flood, earthquake, fire or other catastrophic events), civil
disturbance, strikes (except any strikes involving a Party's personnel), orders or
judgments of any Federal, State or local court, administrative agency or
governmental body, or other similar cause affecting the city of Palo Alto, not the
fault of, and beyond the reasonable control of, the Party claiming excuse. A party
claiming excuse under this Section must (1) have taken reasonable precautions, if
possible, to avoid being affected by the cause and (2) notify the other Party in
accordance with this Section.
Any suspension of performance by a Party pursuant to this Section shall be only
to the extent, and for a period of no longer duration than, required by the nature
of the event, and the Party claiming excuse from obligation shall use its best
efforts in an expeditious manner to remedy its inability to perform, and mitigate
damages that may occur as a result of the event.
The Party claiming excuse shall deliver to the other Party a written notice of intent
to claim excuse from performance under this Agreement by reason of an event of
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City of Palo Alto General Services Agreement 12 Rev. March 29, 2018
Force Majeure. Notice shall be given promptly in light of the circumstances, but in
any event not later than 5 days after the occurrence of the event of Force Majeure.
Such notice shall describe in detail the event of Force Majeure claimed, the
services impacted by the claimed event of Force Majeure, the expected length of
time that the Party expects to be prevented from performing, the steps which the
Party intends to take to restore its ability to perform, and such other information
as the other Party reasonably requests.
The partial or complete interruption or discontinuance of CONTRACTOR’s services
caused by an event of Force Majeure shall not constitute an event of default under
this Agreement. Notwithstanding the foregoing, in the event of non-performance
excused by Force Majeure, where the CONTRACTOR’s nonperformance continues
or is noticed to continue for 10 days or more, CITY shall have the right to terminate
this Agreement immediately and shall have no obligation to pay for services that
have not been performed.
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 LYSTEK INTERNATIONAL LIMITED
_________________________ By________________________________
City Manager or Designee
Name _____________________________
Title_______________________________
Telephone__________________________
Approved as to form: By_________________________________
Name______________________________
__________________________
City Attorney or Designee Title________________________________
Telephone___________________________
DocuSign Envelope ID: A96C8D7E-3923-4DE7-8E38-7DD35DB5D0CE
Ron Tomlinson
CEO
Ron Tomlinson, Chief Executive Officer
6138595962
CFO
Christopher Flann, Chief Financial Officer
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City of Palo Alto General Services Agreement 13 Rev. March 29, 2018
EXHIBIT A
SCOPE OF SERVICES
1. BACKGROUND AND PURPOSE
a. The RWQCP is a wastewater treatment plant that produces sludge
requiring offsite treatment. Two onsite sewage sludge incinerators were
retired in 2019 and replaced with a new sludge dewatering and truck
loadout facility. Since 2019, the sludge has been hauled to two different
regional treatment facilities, including the Lystek site in this contract, for
treatment and end use disposal.
b. To prepare for hauling and treatment, the City first solicited proposals for
sludge hauling and treatment services in 2017. Council approved a three-
year contract 1 with Denali Water Solutions, LLC (Denali) on June 18, 2018
for sludge hauling services through March 31, 2022. Denali began daily
sludge hauling from the City’s dewatering facility on March 19, 2019. Five-
year contracts1 for sludge treatment services with Lystek International
Limited (Lystek) and Synagro-WWT, Inc. (Synagro) were also approved on
June 18, 2018, but these contracts have longer terms through March 31,
2024. A new contract2 for sludge hauling, again with Denali, was approved
on January 24, 2022 for three more years of hauling services beginning
April 1, 2022 and ending March 31, 2025. Following a new solicitation, this
contract extends by five years the sludge treatment services provided at
the Lystek treatment facility.
c. Current treatment facility addresses are shown below along with currently
contracted annual minimums and pricing through 3/31/2024:
i. Lystek International Limited Organic Material Recovery Center on
the site of Fairfield-Suisun Sewer District (FSSD)
1. Address: 1010 Chadbourne Rd, Fairfield, CA 94534
2. Minimum wet tons per year is 6,500 at $98.55/ton
1 Staff Report ID# 8913 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-
reports-cmrs/year-archive/2018/id-8913-approve-three-public-works-contracts-for-sludge-hauling-and-offsite-treatment-
services.pdf
2 Staff Report ID# 13520, see p. 17 at https://www.cityofpaloalto.org/files/assets/public/agendas-
minutes-reports/agendas-minutes/city-council-agendas-minutes/2022/20220124/20220124pccsm-
amended-linked-cq-added.pdf
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City of Palo Alto General Services Agreement 14 Rev. March 29, 2018
2. SLUDGE PREPARER’S ADDRESS
Palo Alto Regional Water Quality Control Plant
2501 Embarcadero Way
Palo Alto, CA 94303
650-329-2598 - phone
3. SERVICE ASSUMPTIONS AND PRICES.
a. Except for tonnage commitments required by the Contractor, the City does
not expressly or by implication agree that the actual amount of work shall
correspond to annual raw sludge tonnages mentioned in this specification,
but reserves the right to increase, decrease, or modify the amount of any
class or portion of the work or to omit portions of the work as may be
deemed necessary or expedient by the City.
b. Annual minimum tonnage delivery is 5,800 tons annually
i. 4,500 wet tons during May through October, 1 truck per day, 7 days
per week (excluding holidays Hauler is not operating)
ii. 1,300 wet tons during November through April, 2 trucks per week
4. PALO ALTO SLUDGE CHARACTERISTICS
a. The material covered under this Agreement is a mix of raw, dewatered
wastewater sludge and scum (hereafter, “sludge”) that has not yet been
stabilized.
b. The wastewater sludge is collected as waste sludge from activated sludge
tanks (about 29% of total content) and primary sludge settling tanks (about
71% of total content). This blend is then thickened in gravity thickeners to
3% to 4% solids. The sludge blend is processed through grinders before
being sent to a blend tank. The sludge is kept blended with mix pumps and
aerated by a blower in a 100,000 gallon mix tank, is pumped to a belt filter
press, is treated for odors in-line with a sodium hypochlorite solution, and
is then dewatered using a high molecular weight cationic polymer solution
on a belt filter press. Upstream preliminary treatment processes include
grit removal and mechanically raked barscreens using ¾” spacing at the
headworks.
c. Primary tank scum is pumped through a grinder, sent to a scum
concentrator, and thickened to about 50% solids. This scum is added to the
20% plus sludge cake screw conveyors that feed into sludge cake bins.
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d. Solids content of filter press cake will have a solid content of not less than
22%. In general, sludge dryness is often in the range of 29% to 30%.
e. Except as stated herein, the City cannot guarantee condition or quality of
the material. Therefore, notice is hereby given that the content and nature
of the sludge and scum may change depending on RWQCP process control
changes, treatment plant changes, influent characteristics, or treatment
plant effectiveness.
f. The City will certify that the wastewater sludge and scum pollutant
concentrations are at or below the metal concentration limits established
in 40 CFR 503.13, Table 1 and Table 3.
g. The wastewater sludge contains pathogenic microorganisms and does not
meet all 40 CFR 503 regulations. The city declares that:
i. The sludge does not meet the pathogen reduction requirements of
40 CFR 503.32(b)(3) [“PRSP”].
ii. The sludge does not meet the vector attraction reduction
requirements of 40 CFR 503.33(b)(1).
h. Furthermore, the RWQCP’s annual USEPA biosolids reports are available
upon request. Exhibit A-1 (Palo Alto Sludge Characteristics) is provided
with analytical data, including trace metal analysis on sludge and scum as
well as general raw sludge characterization.
i. At no time during the term of this Agreement shall the City make available
to the Treatment Facility, nor shall the Treatment Facility be obligated to
handle, any wastewater sludge which is designated a hazardous waste
under any applicable law, rule, or regulation, and nothing herein shall
relieve the City of any liability or responsibility with respect to any sludge
generated at its facilities which is a hazardous waste.
j. The City will sample and test its final sludge material to identify the metal
concentration limits. All City sampling and analytical reports are available
upon request during the term of the agreement. Per USEPA sewage sludge
regulations (40 CFR Section 503), sludge is sampled every other month for
metals including: arsenic, cadmium, copper, lead, mercury, molybdenum,
nickel, selenium, and zinc concentrations.
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City of Palo Alto General Services Agreement 16 Rev. March 29, 2018
5. SLUDGE PRODUCTION ESTIMATES
a. The City produces wastewater sludge twenty-four (24) hours per day,
seven (7) days per week resulting in approximately 16,500 to 20,000 wet
tons annually, which is approximate to the lowest and highest quarter
production rates since January 2020, excluding 2023 first quarter. Note
from Exhibit B that 2019 was a year of optimizing the sludge dewatering
facility. Though 2019 is pre-pandemic and would seem to be the year for
estimating maximum production values, 2019 is not indicative of current
sludge dewatering capabilities and anticipated production quantities.
January to March 2023 shows higher tonnage amounts from solids
loadings induced by winter storm flows, and they are not used for
predicting future maximum sludge production. The estimated sludge
below will be divided between two vendors, Lystek and Synagro.
Minimum
Sludge
Estimated
Maximum Sludge
Estimated Annual
Production
Treatment system, which will produce an estimated 34% additional waste
activated sludge (WAS) or about 10.2% additional total sludge production
b. Production rates may be varied or stopped to match RWQCP operational
needs. Operation may also be interrupted occasionally for maintenance or
repair.
c. The amount of biosolids to be treated is an estimate only. Therefore,
notice is hereby given that the quantity, content, and nature of the
material may change depending on the RWQCP process control changes,
process upsets, plant upgrades, repairs, maintenance, operational
improvements, belt press dewatering schedule, day of week, holidays,
seasonal changes, storm-induced increases in produced solids, changes in
community population, treatment plant changes, and so forth.
6. GENERAL RESPONSIBILITIES
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City of Palo Alto General Services Agreement 17 Rev. March 29, 2018
a. The Contractor, as the treatment facility operator, is to know, follow,
comply with, and stay updated on all federal, state, and local laws,
regulations, statues, ordinances, orders, decrees, and permits that affect
this work. This includes loading and unloading, treatment site operation
and maintenance, monitoring and reporting, processing and disposal of
sludge, USDOT, transportation, driver and operator certifications,
environmental and pollution regulations, noise control, and inspections by
authorized representatives as required by such requirements.
Documentation of specific permits, orders, decrees, registrations, and so
forth shall be provided upon request. All costs associated with obtaining
such permits and licenses shall be considered as included in the unit price.
Federal Regulations, including 40 CFR Parts 257, 258, 403 and 503, provide
specific requirements for biosolids disposal and must be complied with.
b. Raw sludge contains micro-organisms from the wastewater treatment
process that include pathogens. Precautions are required, such as
adequate training, wearing proper PPE (e.g., latex or nitrile gloves, boots,
etc.), washing hands with soap, and access to potable drinking water and
OSHA approved first aid kits. The Contractor is to follow an Exposure
Control Plan for Blood Borne Pathogens pursuant to Cal-OSHA rules and
California Code of Regulations, Title 8, Section 5193. The Exposure Control
Plan is to be on file for review, if requested.
7. DELIVERY SCHEDULE
a. The RWQCP operates year-round and normally calls for two truck pickups
per day, each truck averaging 25 wet tons of sludge. The RWQCP may call
for three trucks and sometimes one truck or no trucks. There have been a
few instances of four or five trucks called for in one day.
b. The RWQCP typically requires haulers to load sludge prior to 6:00 a.m. in
Palo Alto but trucks may be loaded later in the morning, depending on the
situation, haul distance, driver hour limits, and so forth.
c. Treatment sites that are closed for specific holidays (e.g., Thanksgiving,
Christmas, New Years’) or when the City’s contracted hauler is not working
can be accommodated with additional storage capacity at the RWQCP for
one day with advanced planning. During the contract term, the Treatment
Facility is to coordinate with the City’s contracted hauler and the RWQCP
about operating status and hours for public holidays.
d. The Treatment Facility is to share their operating hours with City’s
contracted hauler. The Treatment Facility is to share holidays that they are
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City of Palo Alto General Services Agreement 18 Rev. March 29, 2018
closed with City’s contracted hauler.
8. COORDINATION WITH CITY’S CONTRACTED SLUDGE HAULER
a. Permit requirements at treatment site are to be shared with City’s
contracted hauler upon request by City or hauler at no extra expense to
City of Palo Alto.
b. Any permit requirements are to be directly handled with City’s contracted
hauler, including for insurance, training, reporting, and other
requirements.
c. The City does not have a certified weigh scale onsite. It is the City’s hauler’s
responsibility to avoid overweight loads and pay any associated fines. The
Treatment Facility should directly notify the hauler’s dispatcher of
overweight loads as well as notify the City’s project manager. The City can
direct the Hauler to load their trailers with less weight, if needed. There
are no RWQCP onsite zones or facilities for unloading excess material to
return a truck to a legal weight limit. There is no separate weigh scale
onsite to aid the Hauler in how much material to remove.
d. The RWQCP is not a staging or storage site. The City will not normally allow
a hauler to stage or store loaded trucks at the RWQCP or a Treatment
Facility, except permission may be granted for unusual circumstances.
9. TREATMENT REQUIREMENTS
a. If the treatment / disposal facility has a permit violation, they will notify
the Palo Alto project manager in writing within 30 days of receipt of
written notice. All fines will be paid by the treatment facility and not billed
to Palo Alto.
b. The treatment facility is required to provide adequate space to
accommodate the ingress and egress of the trucks and trailers of the City’s
sludge hauling contractor. The facility will provide water for vehicle clean-
up, suitable lighting for nighttime operation, and any additional facilities
(portable toilets, handwashing facilities) that may be required.
c. Treatment facility shall provide an annual summary to the City of all
monitoring and analytical data as required to complete the City’s Annual
Biosolids Generator’s Report for the USEPA due February 19th of each year.
This annual summary shall be posted by January 31st each year and shall
be sent to the Project Manager.
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City of Palo Alto General Services Agreement 19 Rev. March 29, 2018
d. Treatment facility shall provide the name of a 24-hour emergency contact
person and phone number. Facility will train their onsite staff and comply
with Palo Alto Emergency and Spill Response Plan, as necessary.
e. City will have right to inspect treatment / disposal facility’s site at any time
and without prior notification. Treatment facility shall maintain and
provide copies to the City of all records, documents, and papers
documenting the disposition of biosolids handled by the facility for
inspection by authorized local, state, and federal representatives as
required by law.
f. Neither party shall use the name, marks, or logo of the other treatment
facility in any planned advertisement, promotional material, press release,
or other planned publicity or marking materials, in any form or media, with
regard to the subject matter of the agreement without the prior written
approval of the other party.
g. Treatment parties shall share any requirements and conditions to the
City’s Palo Alto’s contracted Hauler, if not already provided to the current
hauler (i.e., Denali). The contracted hauler may change on April 1, 2025 or
later, when the current 3-year hauling contract and any contract
extensions are completed. If a new hauler is contracted by the City, the
Treatment Facility shall promptly coordinate their requirements with the
new City hauler.
h. Annual reports shall be provided to the RWQCP each year detailing
tonnage treated and final disposal disposition.
i. Treatment facility dates, times, hours of operation, and holiday schedules
shall be provided to sludge haulers interested in proposing on services to
the City of Palo Alto.
10. PAYMENT AND PRICING CONDITIONS
a. See Attachment C – Contract, Section 8, Invoicing.
b. Payment for work is to be made on a wet tonnage basis. Weight shall be
based on a certified scale.
c. Except as directed otherwise in these specifications, full compensation for
completing Agreement work is considered to be included in the unit prices
paid for the various items of work and no separate payment will be made
therefore.
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International Limited
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City of Palo Alto General Services Agreement 20 Rev. March 29, 2018
d. Invoicing. Submit a monthly invoice to:
Rwqcp.invoices@cityofpalolato.org
Palo Alto Regional Water Quality Control Plant
Attn: Project Manager, James Allen
2501 Embarcadero Way
Palo Alto, CA 94303
650-329-2598 - phone
Invoice shall include:
• Purchase Order Number
• Item description
• Copy of each load delivery tag along with the tons hauled
• Attached certified weight ticket for each load
• Certified net weight of each load times contract price per ton
11. DOCUMENTATION
a. The Contractor shall, at all times during the transportation, storage, and
disposal of sludge to be managed under this Agreement, know the
location, condition and status of each item being managed.
END OF SECTION
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International Limited
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City of Palo Alto General Services Agreement 21 Rev. March 29, 2018
EXHIBIT A-1
PALO ALTO SLUDGE CHARACTERISTICS
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City of Palo Alto General Services Agreement 22 Rev. March 29, 2018
EXHIBIT B
SCHEDULE OF PERFORMANCE
CHOOSE ONE OF THESE ALTERNATIVES TO DESCRIBE SCHEDULE:
Alternative 1.
CONTRACTOR shall perform the Services according to the following schedule:
Daily sludge treatment from April 1, 2024 to March 31, 2029.
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City of Palo Alto General Services Agreement 23 Rev. March 29, 2018
EXHIBIT C
SCHEDULE OF FEES
ALTERNATIVE 3. Compensation based upon fee schedule
CITY shall pay CONTRACTOR according to the following rate schedule. The maximum amount of
compensation to be paid to CONTRACTOR, including both payment for services and reimbursable expenses,
shall not exceed the amounts set forth in Sections 5 and 6 of the Agreement. Any services provided or hours
worked for which payment would result in a total exceeding the maximum amount of compensation set forth
herein shall be at no cost to CITY.
DETAILED RATE SCHEDULE
Start End
Lystek
Unit Price Lystek
04/01/24 03/30/25 $ 148.00
04/01/25 03/30/26 $ 156.88 6.0%
04/01/26 03/30/27 $ 166.29 5.0%
04/01/27 03/30/28 $ 176.27 4.0%
04/01/28 03/30/29 $ 186.85 4.0%
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International Limited
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City of Palo Alto General Services Agreement 24 Rev. March 29, 2018
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
AGGREGATE
YES
YES EMPLOYER’S LIABILITY STATUTORY
YES GENERAL LIABILITY, INCLUDING
PERSONAL INJURY, BROAD FORM
PROPERTY DAMAGE BLANKET
CONTRACTUAL, AND FIRE LEGAL
LIABILITY
PROPERTY DAMAGE
BODILY INJURY & PROPERTY
DAMAGE COMBINED.
$2,000,000
$2,000,000
$2,000,000
$2,000,000
NO AUTOMOBILE LIABILITY,
INCLUDING ALL OWNED, HIRED,
NON-OWNED
- EACH PERSON
- EACH OCCURRENCE
PROPERTY DAMAGE
BODILY INJURY AND PROPERTY
$2,000,000
$2,000,000
$2,000,000
$2,000,000
$2,000,000
$2,000,000
$2,000,000
$2,000,000
NO
INCLUDING, ERRORS AND
OMISSIONS, MALPRACTICE (WHEN
APPLICABLE), AND NEGLIGENT
YES POLLUTION LIABILITY ALL DAMAGES
YES : 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
COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS
I. INSURANCE COVERAGE MUST INCLUDE:
A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE
FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY.
II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED
COVERAGE.
III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO
“ADDITIONAL INSUREDS”
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International Limited
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City of Palo Alto General Services Agreement 25 Rev. March 29, 2018
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
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City of Palo Alto General Services Agreement 1 Rev. March 29, 2018
CITY OF PALO ALTO CONTRACT NO. C24187745B
GENERAL SERVICES AGREEMENT
THIS AGREEMENT made and entered into on the 12th day of February, 2024, by and
between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”),
and SYNAGRO-WWT, INC., a Maryland corporation, located at 435 Williams Court, Suite
100, Baltimore, MD 21220, Telephone Number: 410-688-4438 (“CONTRACTOR”). In
consideration of their mutual covenants, the parties hereto agree as follows:
1. SERVICES. CONTRACTOR shall provide or furnish the services (the “Services”)
described in the Scope of Services, attached at Exhibit A.
2. EXHIBITS. The following exhibits are attached to and made a part of this
Agreement:
“A” - Scope of Services
“A-1” – Palo Alto Sludge Characteristics
“B” - Schedule of Performance
“C” – Schedule of Fees
“D” - Insurance Requirements
CONTRACT IS NOT COMPLETE UNLESS ALL INDICATED EXHIBITS ARE ATTACHED.
3. TERM.
The term of this Agreement is from April 1, 2024 to March 31, 2029 inclusive,
subject to the provisions of Sections R and W of the General Terms and Conditions.
4. SCHEDULE OF PERFORMANCE. CONTRACTOR shall complete the Services within
the term of this Agreement in a reasonably prompt and timely manner based upon
the circumstances and direction communicated to CONTRACTOR, and if
applicable, in accordance with the schedule set forth in the Schedule of
Performance, attached at Exhibit B. Time is of the essence in this Agreement.
5. COMPENSATION FOR ORIGINAL TERM. CITY shall pay and CONTRACTOR agrees
to accept as not-to-exceed compensation for the full performance of the Services
and reimbursable expenses, if any:
The total maximum lump sum compensation of dollars ($ );
OR
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C24187745B with
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City of Palo Alto General Services Agreement 2 Rev. March 29, 2018
The sum of dollars ($ ) per hour, not to exceed a total
maximum compensation amount of dollars ($ ); OR
A sum calculated in accordance with the fee schedule set forth at Exhibit
C, not to exceed a total maximum compensation amount of seven million
six hundred seventeen thousand and thirteen dollars ($7,617,013.00).
CONTRACTOR agrees that it can perform the Services for an amount not to exceed
the total maximum compensation set forth above. Any hours worked or services
performed by CONTRACTOR for which payment would result in a total exceeding
the maximum amount of compensation set forth above for performance of the
Services shall be at no cost to CITY.
CITY has set aside the sum of dollars ($ ) for Additional
Services. CONTRACTOR shall provide Additional Services only by
advanced, written authorization from the City Manager or designee.
CONTRACTOR, at the CITY’s request, shall submit a detailed written
proposal including a description of the scope of services, schedule, level of
effort, and CONTRACTOR’s proposed maximum compensation, including
reimbursable expense, for such services. Compensation shall be based on
the hourly rates set forth above or in Exhibit C (whichever is applicable), or
if such rates are not applicable, a negotiated lump sum. CITY shall not
authorize and CONTRACTOR shall not perform any Additional Services for
which payment would exceed the amount set forth above for Additional
Services. Payment for Additional Services is subject to all requirements and
restrictions in this Agreement.
6. COMPENSATION DURING ADDITIONAL TERMS.
CONTRACTOR’S compensation rates for each additional term shall be the
same as the original term; OR
CONTRACTOR’s compensation rates shall be adjusted effective on the
commencement of each Additional Term. The lump sum compensation
amount, hourly rates, or fees, whichever is applicable as set forth in section
5 above, shall be adjusted by a percentage equal to the change in the
Consumer Price Index for Urban Wage Earners and Clerical Workers for the
San Francisco-Oakland- San Jose area, published by the United States
Department of Labor Statistics (CPI) which is published most immediately
preceding the commencement of the applicable Additional Term, which
shall be compared with the CPI published most immediately preceding the
commencement date of the then expiring term. Notwithstanding the
foregoing, in no event shall CONTRACTOR’s compensation rates be
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C24187745B with
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City of Palo Alto General Services Agreement 3 Rev. March 29, 2018
increased by an amount exceeding five percent of the rates effective
during the immediately preceding term. Any adjustment to
CONTRACTOR’s compensation rates shall be reflected in a written
amendment to this Agreement.
7. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS”. For purposes of this
Section 7, a “9204 Public Works Project” means the erection, construction,
alteration, repair, or improvement of any public structure, building, road, or other
public improvement of any kind. Public Contract Code Section 9204 mandates
certain claims procedures for Public Works Projects
This project is not a 9204 Public Works Project.
8. INVOICING. Send all invoices to CITY, Attention: Project Manager. The Project
Manager is: James Allen, Dept.: Public Works, Telephone: 650-329-2243;
rwqcp.invoices@cityofpaloalto.org. Invoices shall be submitted in arrears for
Services performed. Invoices shall not be submitted more frequently than
monthly. Invoices shall provide a detailed statement of Services performed during
the invoice period and are subject to verification by CITY. CITY shall pay the
undisputed amount of invoices within 30 days of receipt.
GENERAL TERMS AND CONDITIONS
A. ACCEPTANCE. CONTRACTOR accepts and agrees to all terms and conditions of
this Agreement. This Agreement includes and is limited to the terms and
conditions set forth in sections 1 through 8 above, these general terms and
conditions and the attached exhibits.
B. QUALIFICATIONS. CONTRACTOR represents and warrants that it has the expertise
and qualifications to complete the services described in Section 1 of this
Agreement, entitled “SERVICES,” and that every individual charged with the
performance of the services under this Agreement has sufficient skill and
experience and is duly licensed or certified, to the extent such licensing or
certification is required by law, to perform the Services. CITY expressly relies on
CONTRACTOR’s representations regarding its skills, knowledge, and certifications.
CONTRACTOR shall perform all work in accordance with generally accepted
business practices and performance standards of the industry, including all
federal, state, and local operation and safety regulations.
C. INDEPENDENT CONTRACTOR. It is understood and agreed that in the
performance of this Agreement, CONTRACTOR and any person employed by
CONTRACTOR shall at all times be considered an independent CONTRACTOR and
not an agent or employee of CITY. CONTRACTOR shall be responsible for
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C24187745B with
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employing or engaging all persons necessary to complete the work required under
this Agreement.
D. SUBCONTRACTORS. CONTRACTOR may not use subcontractors to perform any
Services under this Agreement unless CONTRACTOR obtains prior written consent
of CITY. CONTRACTOR shall be solely responsible for directing the work of
approved subcontractors and for any compensation due to subcontractors.
E. TAXES AND CHARGES. CONTRACTOR shall be responsible for payment of all taxes,
fees, contributions or charges applicable to the conduct of CONTRACTOR’s
business.
F. COMPLIANCE WITH LAWS. CONTRACTOR shall in the performance of the Services
comply with all applicable federal, state and local laws, ordinances, regulations,
and orders.
G. PALO ALTO MINIMUM WAGE ORDINANCE. CONTRACTOR shall comply with all
requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum
Wage), as it may be amended from time to time. In particular, for any employee
otherwise entitled to the State minimum wage, who performs at least two (2)
hours of work in a calendar week within the geographic boundaries of the City,
CONTRACTOR shall pay such employees no less than the minimum wage set forth
in Palo Alto Municipal Code section 4.62.030 for each hour worked within the
geographic boundaries of the City of Palo Alto. In addition, CONTRACTOR shall
post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with
Palo Alto Municipal Code section 4.62.060.
H. DAMAGE TO PUBLIC OR PRIVATE PROPERTY. CONTRACTOR shall, at its sole
expense, repair in kind, or as the City Manager or designee shall direct, any
damage to public or private property that occurs in connection with
CONTRACTOR’s performance of the Services. CITY may decline to approve and
may withhold payment in whole or in part to such extent as may be necessary to
protect CITY from loss because of defective work not remedied or other damage
to the CITY occurring in connection with CONTRACTOR’s performance of the
Services. CITY shall submit written documentation in support of such withholding
upon CONTRACTOR’s request. When the grounds described above are removed,
payment shall be made for amounts withheld because of them.
I. WARRANTIES. CONTRACTOR expressly warrants that all services provided under
this Agreement shall be performed in a professional and workmanlike manner in
accordance with generally accepted business practices and performance
standards of the industry and the requirements of this Agreement. CONTRACTOR
expressly warrants that all materials, goods and equipment provided by
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C24187745B with
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City of Palo Alto General Services Agreement 5 Rev. March 29, 2018
CONTRACTOR under this Agreement shall be fit for the particular purpose
intended, shall be free from defects, and shall conform to the requirements of this
Agreement. CONTRACTOR agrees to promptly replace or correct any material or
service not in compliance with these warranties, including incomplete, inaccurate,
or defective material or service, at no further cost to CITY. The warranties set
forth in this section shall be in effect for a period of one year from completion of
the Services and shall survive the completion of the Services or termination of this
Agreement.
J. MONITORING OF SERVICES. CITY may monitor the Services performed under this
Agreement to determine whether CONTRACTOR’s work is completed in a
satisfactory manner and complies with the provisions of this Agreement.
K. CITY’S PROPERTY. Any reports, information, data or other material (including
copyright interests) developed, collected, assembled, prepared, or caused to be
prepared under this Agreement will become the property of CITY without
restriction or limitation upon their use and will not be made available to any
individual or organization by CONTRACTOR or its subcontractors, if any, without
the prior written approval of the City Manager.
L. AUDITS. CONTRACTOR agrees to permit CITY and its authorized representatives
to audit, at any reasonable time during the term of this Agreement and for three
(3) years from the date of final payment, CONTRACTOR’s records pertaining to
matters covered by this Agreement. CONTRACTOR agrees to maintain accurate
books and records in accordance with generally accepted accounting principles for
at least three (3) following the terms of this Agreement.
M. 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.
N. INSURANCE. CONTRACTOR, at its sole cost, shall purchase and maintain in full
force during the term of this Agreement, the insurance coverage described at
Exhibit D. Insurance must be provided by companies with a Best’s Key Rating of A-
:VII or higher and which are otherwise acceptable to CITY’s Risk Manager. The Risk
Manager must approve deductibles and self-insured retentions. In addition, all
policies, endorsements, certificates and/or binders are subject to approval by the
Risk Manager as to form and content. CONTRACTOR shall obtain a policy
endorsement naming the City of Palo Alto as an additional insured under any
general liability or automobile policy. CONTRACTOR shall obtain an endorsement
stating that the insurance is primary coverage and will not be canceled or
materially reduced in coverage or limits until after providing 30 days prior written
notice of the cancellation or modification to the Risk Manager. CONTRACTOR shall
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C24187745B with
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City of Palo Alto General Services Agreement 6 Rev. March 29, 2018
provide certificates of such policies or other evidence of coverage satisfactory to
the Risk Manager, together with the required endorsements and evidence of
payment of premiums, to CITY concurrently with the execution of this Agreement
and shall throughout the term of this Agreement provide current certificates
evidencing the required insurance coverages and endorsements to the Risk
Manager. CONTRACTOR shall include all subcontractors as insured under its
policies or shall obtain and provide to CITY separate certificates and endorsements
for each subcontractor that meet all the requirements of this section. The
procuring of such required policies of insurance shall not operate to limit
CONTRACTOR’s liability or obligation to indemnify CITY under this Agreement.
O. HOLD HARMLESS. To the fullest extent permitted by law and without limitation
by the provisions of section N relating to insurance, CONTRACTOR shall indemnify,
defend and hold harmless CITY, its Council members, officers, employees and
agents from and against any and all demands, claims, injuries, losses, or liabilities
of any nature, including death or injury to any person, property damage or any
other loss and including without limitation all damages, penalties, fines and
judgments, associated investigation and administrative expenses and defense
costs, including, but not limited to reasonable attorney’s fees, courts costs and
costs of alternative dispute resolution), arising out of, or resulting in any way from
or in connection with the performance of this Agreement. CONTRACTOR’s
obligations under this Section apply regardless of whether or not a liability is
caused or contributed to by any negligent (passive or active) act or omission of
CITY, except that CONTRACTOR shall not be obligated to indemnify for liability
arising from the sole negligence or willful misconduct of CITY. The acceptance of
the Services by CITY shall not operate as a waiver of the right of indemnification.
The provisions of this Section survive the completion of the Services or
termination of this Agreement.
P. NON-DISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510,
CONTRACTOR certifies that in the performance of this Agreement, it shall not
discriminate in the employment of any person because of the race, skin color,
gender, age, religion, disability, national origin, ancestry, sexual orientation,
housing status, marital status, familial status, weight or height of such person.
CONTRACTOR acknowledges that it has read and understands the provisions of
Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination
Requirements and the penalties for violation thereof, and agrees to meet all
requirements of Section 2.30.510 pertaining to nondiscrimination in employment.
Q. WORKERS' COMPENSATION. CONTRACTOR, by executing this Agreement,
certifies that it is aware of the provisions of the Labor Code of the State of Califor-
nia which require every employer to be insured against liability for workers'
compensation or to undertake self-insurance in accordance with the provisions of
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that Code, and certifies that it will comply with such provisions, as applicable,
before commencing and during the performance of the Services.
R. TERMINATION. The City Manager may terminate this Agreement without cause
by giving ten (10) days’ prior written notice thereof to CONTRACTOR. If
CONTRACTOR fails to perform any of its material obligations under this
Agreement, in addition to all other remedies provided by law, the City Manager
may terminate this Agreement immediately upon written notice of termination.
Upon receipt of such notice of termination, CONTRACTOR shall immediately
discontinue performance. CITY shall pay CONTRACTOR for services satisfactorily
performed up to the effective date of termination. If the termination is for cause,
CITY may deduct from such payment the amount of actual damage, if any,
sustained by CITY due to CONTRACTOR’s failure to perform its material obligations
under this Agreement. Upon termination, CONTRACTOR shall immediately deliver
to the City Manager any and all copies of studies, sketches, drawings,
computations, and other material or products, whether or not completed,
prepared by CONTRACTOR or given to CONTRACTOR, in connection with this
Agreement. Such materials shall become the property of CITY.
S. ASSIGNMENTS/CHANGES. This Agreement binds the parties and their successors
and assigns to all covenants of this Agreement. This Agreement shall not be
assigned or transferred without the prior written consent of CITY. No
amendments, changes or variations of any kind are authorized without the written
consent of CITY.
T. CONFLICT OF INTEREST. In accepting this Agreement, CONTRACTOR covenants
that it presently has no interest, and will not acquire any interest, direct or
indirect, financial or otherwise, which would conflict in any manner or degree with
the performance of this Agreement. CONTRACTOR further covenants that, in the
performance of this Agreement, it will not employ any person having such an
interest. CONTRACTOR certifies that no CITY officer, employee, or authorized
representative has any financial interest in the business of CONTRACTOR and that
no person associated with CONTRACTOR has any interest, direct or indirect, which
could conflict with the faithful performance of this Agreement. CONTRACTOR
agrees to advise CITY if any conflict arises.
U. GOVERNING LAW. This Agreement shall be governed and interpreted by the laws
of the State of California.
V. ENTIRE AGREEMENT. This Agreement, including all exhibits, represents the entire
agreement between the parties with respect to the services that may be the
subject of this Agreement. Any variance in the exhibits does not affect the validity
of the Agreement and the Agreement itself controls over any conflicting provisions
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City of Palo Alto General Services Agreement 8 Rev. March 29, 2018
in the exhibits. This Agreement supersedes all prior agreements, representations,
statements, negotiations and undertakings whether oral or written.
W. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the
Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement
will terminate without any penalty (a) at the end of any fiscal year in the event
that funds are not appropriated for the following fiscal year, or (b) at any time
within a fiscal year in the event that funds are only appropriated for a portion of
the fiscal year and funds for this 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.
X. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE
REQUIREMENTS. CONTRACTOR shall comply with CITY’s Environmentally
Preferred Purchasing policies which are available at CITY’s Purchasing Division,
which are incorporated by reference and may be amended from time to time.
CONTRACTOR shall comply with waste reduction, reuse, recycling and disposal
requirements of CITY’s Zero Waste Program. Zero Waste best practices include
first minimizing and reducing waste; second, reusing waste and third, recycling or
composting waste. In particular, CONTRACTOR shall comply with the following
zero waste requirements:
• All printed materials provided by CONTRACTOR to CITY generated from a
personal computer and printer including but not limited to, proposals,
quotes, invoices, reports, and public education materials, shall be double-
sided and printed on a minimum of 30% or greater post-consumer content
paper, unless otherwise approved by CITY’s Project Manager. Any
submitted materials printed by a professional printing company shall be a
minimum of 30% or greater post-consumer material and printed with
vegetable based inks.
• Goods purchased by Contractor on behalf of CITY shall be purchased in
accordance with 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 Division’s
office.
• Reusable/returnable pallets shall be taken back by CONTRCATOR, at no
additional cost to CITY, for reuse or recycling. CONTRACTOR shall provide
documentation from the facility accepting the pallets to verify that pallets
are not being disposed.
Y. AUTHORITY. The individual(s) executing this Agreement on behalf of the parties
represent and warrant that they have the legal capacity and authority to do so on
behalf of their respective legal entities.
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City of Palo Alto General Services Agreement 9 Rev. March 29, 2018
Z. PREVAILING WAGES
This Project is not subject to prevailing wages. CONTRACTOR is not required to
pay prevailing wages in the performance and implementation of the Project in
accordance with SB 7, if the Agreement is not a public works contract, if
Agreement does not include a public works construction project of more than
$25,000, or the Agreement does not include a public works alteration, demolition,
repair, or maintenance (collectively, ‘improvement’) project of more than
$15,000.
AA. DIR REGISTRATION. In regard to any public work construction, alteration,
demolition, repair or maintenance work, CITY will not accept a bid proposal from
or enter into this Agreement with CONTRACTOR without proof that CONTRACTOR
and its listed subcontractors are registered with the California Department of
Industrial Relations (“DIR”) to perform public work, subject to limited exceptions.
City requires CONTRACTOR and its listed subcontractors to comply with the
requirements of SB 854.
CITY provides notice to CONTRACTOR of the requirements of California Labor
Code section 1771.1(a), which reads:
“A contractor or subcontractor shall not be qualified to bid on, be listed in a bid
proposal, subject to the requirements of Section 4104 of the Public Contract Code,
or engage in the performance of any contract for public work, as defined in this
chapter, unless currently registered and qualified to perform public work pursuant
to Section 1725.5. It is not a violation of this section for an unregistered contractor
to submit a bid that is authorized by Section 7029.1 of the Business and
Professions Code or Section 10164 or 20103.5 of the Public Contract Code,
provided the contractor is registered to perform public work pursuant to Section
1725.5 at the time the Agreement is awarded.”
CITY gives notice to CONTRACTOR and its listed subcontractors that CONTRACTOR
is required to post all job site notices prescribed by law or regulation and
CONTRACTOR is subject to SB 854-compliance monitoring and enforcement by
DIR.
CITY requires CONTRACTOR and its listed subcontractors to comply with the
requirements of Labor Code section 1776, including:
Keep accurate payroll records, showing the name, address, social security
number, work classification, straight time and overtime hours worked each day
and week, and the actual per diem wages paid to each journeyman, apprentice,
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City of Palo Alto General Services Agreement 10 Rev. March 29, 2018
worker, or other employee employed by, respectively, CONTRACTOR and its listed
subcontractors, in connection with the Project.
The payroll records shall be verified as true and correct and shall be certified and
made available for inspection at all reasonable hours at the principal office of
CONTRACTOR and its listed subcontractors, respectively.
At the request of CITY, acting by its project manager, CONTRACTOR and its listed
subcontractors shall make the certified payroll records available for inspection or
furnished upon request to the project manager within ten (10) days of receipt of
CITY’s request.
[For state- and federally-funded projects] CITY requests CONTRACTOR and
its listed subcontractors to submit the certified payroll records to the
project manager at the end of each week during the Project.
If the certified payroll records are not produced to the project manager within the
10-day period, then CONTRACTOR and its listed subcontractors shall be subject to
a penalty of one hundred dollars ($100.00) per calendar day, or portion thereof,
for each worker, and CITY shall withhold the sum total of penalties from the
progress payment(s) then due and payable to CONTRACTOR.
Inform the project manager of the location of CONTRACTOR’s and its listed
subcontractors’ payroll records (street address, city and county) at the
commencement of the Project, and also provide notice to the project manager
within five (5) business days of any change of location of those payroll records.
BB. CONTRACT TERMS. All unchecked boxes do not apply to this Agreement. In the
case of any conflict between the terms of this Agreement and the exhibits hereto
or CONTRACTOR’s proposal (if any), the Agreement shall control. In the case of
any conflict between the exhibits hereto and CONTRACTOR’s proposal, the
exhibits shall control.
CC. FORCE MAJEURE. Neither Party shall be in default of its obligations under this
Agreement in the event, and for so long as, it is impossible or extremely
impracticable for it to perform its obligations due to an “act of God” (including,
but not limited to, flood, earthquake, fire or other catastrophic events), civil
disturbance, strikes (except any strikes involving a Party's personnel), orders or
judgments of any Federal, State or local court, administrative agency or
governmental body, or other similar cause affecting the city of Palo Alto, not the
fault of, and beyond the reasonable control of, the Party claiming excuse. A party
claiming excuse under this Section must (1) have taken reasonable precautions, if
possible, to avoid being affected by the cause and (2) notify the other Party in
accordance with this Section.
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City of Palo Alto General Services Agreement 11 Rev. March 29, 2018
Any suspension of performance by a Party pursuant to this Section shall be only
to the extent, and for a period of no longer duration than, required by the nature
of the event, and the Party claiming excuse from obligation shall use its best
efforts in an expeditious manner to remedy its inability to perform, and mitigate
damages that may occur as a result of the event.
The Party claiming excuse shall deliver to the other Party a written notice of intent
to claim excuse from performance under this Agreement by reason of an event of
Force Majeure. Notice shall be given promptly in light of the circumstances, but in
any event not later than 5 days after the occurrence of the event of Force Majeure.
Such notice shall describe in detail the event of Force Majeure claimed, the
services impacted by the claimed event of Force Majeure, the expected length of
time that the Party expects to be prevented from performing, the steps which the
Party intends to take to restore its ability to perform, and such other information
as the other Party reasonably requests.
The partial or complete interruption or discontinuance of CONTRACTOR’s services
caused by an event of Force Majeure shall not constitute an event of default under
this Agreement. Notwithstanding the foregoing, in the event of non-performance
excused by Force Majeure, where the CONTRACTOR’s nonperformance continues
or is noticed to continue for 10 days or more, CITY shall have the right to terminate
this Agreement immediately and shall have no obligation to pay for services that
have not been performed.
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City of Palo Alto General Services Agreement 12 Rev. March 29, 2018
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 SYNAGRO-WWT, INC
_________________________ By________________________________
City Manager or Designee
Name _____________________________
Title_______________________________
Telephone _________________________
Approved as to form: By_________________________________
Name _____________________________
Title_______________________________
_________________________
City Attorney or Designee Telephone _________________________
DocuSign Envelope ID: CD2AAB48-F1DE-4C9B-9F2E-49DE8287B2F1
Contract Administration Manager
410-537-6154
Rhylee Callan, Contract Administration Manager
Contract Administration Manager
410-537-6154
Rhylee Callan, Contract Administration Manager
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City of Palo Alto General Services Agreement 13 Rev. March 29, 2018
EXHIBIT A
SCOPE OF SERVICES
1. BACKGROUND AND PURPOSE
a. The RWQCP is a wastewater treatment plant that produces sludge
requiring offsite treatment. Two onsite sewage sludge incinerators were
retired in 2019 and replaced with a new sludge dewatering and truck
loadout facility. Since 2019, the sludge has been hauled to two different
regional treatment facilities, including the Synagro site in this contract,
for treatment and end use disposal.
b. To prepare for hauling and treatment, the City first solicited proposals for
sludge hauling and treatment services in 2017. Council approved a three-
year contract 1 with Denali Water Solutions, LLC (Denali) on June 18, 2018
for sludge hauling services through March 31, 2022. Denali began daily
sludge hauling from the City’s dewatering facility on March 19, 2019. Five-
year contracts1 for sludge treatment services with Lystek International
Limited (Lystek) and Synagro-WWT, Inc. (Synagro) were also approved on
June 18, 2018, but these contracts have longer terms through March 31,
2024. A new contract2 for sludge hauling, again with Denali, was approved
on January 24, 2022 for three more years of hauling services beginning
April 1, 2022 and ending March 31, 2025. Following a new solicitation, this
contract extends by five years the sludge treatment services provided at
the Synagro treatment facility.
c. Current treatment facility addresses are shown below along with currently
contracted annual minimums and pricing:
i. Synagro Central Valley Compost Facility (CVC)
1. Address: 13757 Harmon Rd, Dos Palos, CA 93620
2. Minimum wet tons per year is 10,000 at $40.85/ton
2. SLUDGE PREPARER’S ADDRESS
Palo Alto Regional Water Quality Control Plant
1 Staff Report ID# 8913 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-
reports-cmrs/year-archive/2018/id-8913-approve-three-public-works-contracts-for-sludge-hauling-and-offsite-treatment-
services.pdf
2 Staff Report ID# 13520, see p. 17 at https://www.cityofpaloalto.org/files/assets/public/agendas-
minutes-reports/agendas-minutes/city-council-agendas-minutes/2022/20220124/20220124pccsm-
amended-linked-cq-added.pdf
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City of Palo Alto General Services Agreement 14 Rev. March 29, 2018
2501 Embarcadero Way
Palo Alto, CA 94303
650-329-2598 - phone
3. SERVICE ASSUMPTIONS AND PRICES.
a. Except for tonnage commitments required by the Contractor, the City does
not expressly or by implication agree that the actual amount of work shall
correspond to annual raw sludge tonnages mentioned in this specification,
but reserves the right to increase, decrease, or modify the amount of any
class or portion of the work or to omit portions of the work as may be
deemed necessary or expedient by the City.
b. Annual minimum tonnage delivery guarantee is 10,000 wet tons.
4. PALO ALTO SLUDGE CHARACTERISTICS
a. The material covered under this Agreement is a mix of raw, dewatered
wastewater sludge and scum (hereafter, “sludge”) that has not yet been
stabilized.
b. The wastewater sludge is collected as waste sludge from activated sludge
tanks (about 29% of total content) and primary sludge settling tanks (about
71% of total content). This blend is then thickened in gravity thickeners to
3% to 4% solids. The sludge blend is processed through grinders before
being sent to a blend tank. The sludge is kept blended with mix pumps and
aerated by a blower in a 100,000 gallon mix tank, is pumped to a belt filter
press, is treated for odors in-line with a sodium hypochlorite solution, and
is then dewatered using a high molecular weight cationic polymer solution
on a belt filter press. Upstream preliminary treatment processes include
grit removal and mechanically raked barscreens using ¾” spacing at the
headworks.
c. Primary tank scum is pumped through a grinder, sent to a scum
concentrator, and thickened to about 50% solids. This scum is added to the
20% plus sludge cake screw conveyors that feed into sludge cake bins.
d. Solids content of filter press cake will have a solid content of not less than
22%. In general, sludge dryness is often in the range of 29% to 30%.
e. Except as stated herein, the City cannot guarantee condition or quality of
the material. Therefore, notice is hereby given that the content and nature
of the sludge and scum may change depending on RWQCP process control
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City of Palo Alto General Services Agreement 15 Rev. March 29, 2018
changes, treatment plant changes, influent characteristics, or treatment
plant effectiveness.
f. The City will certify that the wastewater sludge and scum pollutant
concentrations are at or below the metal concentration limits established
in 40 CFR 503.13, Table 1 and Table 3.
g. The wastewater sludge contains pathogenic microorganisms and does not
meet all 40 CFR 503 regulations. The city declares that:
i. The sludge does not meet the pathogen reduction requirements of
40 CFR 503.32(b)(3) [“PRSP”].
ii. The sludge does not meet the vector attraction reduction
requirements of 40 CFR 503.33(b(1).
h. Furthermore, the RWQCP’s annual USEPA biosolids reports are available
upon request. Exhibit A-1 (Palo Alto Sludge Characteristics) is provided
with analytical data, including trace metal analysis on sludge and scum as
well as general raw sludge characterization.
i. At no time during the term of this Agreement shall the City make available
to the Treatment Facility, nor shall the Treatment Facility be obligated to
handle, any wastewater sludge which is designated a hazardous waste
under any applicable law, rule, or regulation, and nothing herein shall
relieve the City of any liability or responsibility with respect to any sludge
generated at its facilities which is a hazardous waste.
j. The City will sample and test its final sludge material to identify the metal
concentration limits. All City sampling and analytical reports are available
upon request during the term of the agreement. Per USEPA sewage sludge
regulations (40 CFR Section 503) , sludge is sampled every other month for
metals including: arsenic, cadmium, copper, lead, mercury, molybdenum,
nickel, selenium, and zinc concentrations.
5. SLUDGE PRODUCTION ESTIMATES
a. The City produces wastewater sludge twenty-four (24) hours per day,
seven (7) days per week resulting in approximately 16,500 to 20,000 wet
tons annually, which is approximate to the lowest and highest quarter
production rates since January 2020, excluding 2023 first quarter. Note
from Exhibit B that 2019 was a year of optimizing the sludge dewatering
facility. Though 2019 is pre-pandemic and would seem to be the year for
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City of Palo Alto General Services Agreement 16 Rev. March 29, 2018
estimating maximum production values, 2019 is not indicative of current
sludge dewatering capabilities and anticipated production quantities.
January to March 2023 shows higher tonnage amounts from solids
loadings induced by winter storm flows, and they are not used for
predicting future maximum sludge production. The estimated sludge
below will be divided between two vendors, Lystek and Synagro.
Minimum Sludge Maximum Sludge Production
system, which will produce an estimated 34% additional waste activated sludge (WAS)
or about 10.2% additional total sludge production beginning on an estimated date of
b. Production rates may be varied or stopped to match RWQCP operational
needs. Operation may also be interrupted occasionally for maintenance or
repair.
c. The amount of biosolids to be treated is an estimate only. Therefore,
notice is hereby given that the quantity, content, and nature of the
material may change depending on the RWQCP process control changes,
process upsets, plant upgrades, repairs, maintenance, operational
improvements, belt press dewatering schedule, day of week, holidays,
seasonal changes, storm-induced increases in produced solids, changes in
community population, treatment plant changes, and so forth.
6. GENERAL RESPONSIBILITIES
a. The Contractor, as the treatment facility operator, is to know, follow,
comply with, and stay updated on all federal, state, and local laws,
regulations, statues, ordinances, orders, decrees, and permits that affect
this work. This includes loading and unloading, treatment site operation
and maintenance, monitoring and reporting, processing and disposal of
sludge, USDOT, transportation, driver and operator certifications,
environmental and pollution regulations, noise control, and inspections by
authorized representatives as required by such requirements.
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City of Palo Alto General Services Agreement 17 Rev. March 29, 2018
Documentation of specific permits, orders, decrees, registrations, and so
forth shall be provided upon request. All costs associated with obtaining
such permits and licenses shall be considered as included in the unit price.
Federal Regulations, including 40CFR Parts 257, 258, 403 and 503, provide
specific requirements for biosolids disposal and must be complied with.
b. Raw sludge contains micro-organisms from the wastewater treatment
process that include pathogens. Precautions are required, such as
adequate training, wearing proper PPE (e.g., latex or nitrile gloves, boots,
etc.), washing hands with soap, and access to potable drinking water and
OSHA approved first aid kits. The Contractor is to follow an Exposure
Control Plan for Blood Borne Pathogens pursuant to Cal-OSHA rules and
California Code of Regulations, Title 8, Section 5193. The Exposure Control
Plan is to be on file for review, if requested.
7. DELIVERY SCHEDULE
a. The RWQCP operates year-round and normally calls for two truck pickups
per day, each truck averaging 25 wet tons of sludge. The RWQCP may call
for three trucks and sometimes one truck or no trucks. There have been a
few instances of four or five trucks called for in one day.
b. The RWQCP typically requires haulers to load sludge prior to 6:00 a.m. in
Palo Alto but trucks may be loaded later in the morning, depending on the
situation, haul distance, driver hour limits, and so forth.
c. Treatment sites that are closed for specific holidays (e.g., Thanksgiving,
Christmas, New Years’) or when the City’s contracted hauler is not working
can be accommodated with additional storage capacity at the RWQCP for
one day with advanced planning. During the contract term, the Treatment
Facility is to coordinate with the City’s contracted hauler and the RWQCP
about operating status and hours for public holidays.
d. The Treatment Facility is to share their operating hours with City’s
contracted hauler. The Treatment Facility is to share holidays that they are
closed with City’s contracted hauler.
8. COORDINATION WITH CITY’S CONTRACTED SLUDGE HAULER
a. Permit requirements at treatment site are to be shared with City’s
contracted hauler upon request by City or hauler at no extra expense to
City of Palo Alto.
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b. Any permit requirements are to be directly handled with City’s contracted
hauler, including for insurance, training, reporting, and other
requirements.
c. The City does not have a certified weigh scale onsite. It is the City’s hauler’s
responsibility to avoid overweight loads and pay any associate fines. The
Treatment Facility should directly notify the hauler’s dispatcher of
overweight loads as well as notify the City’s project manager. The City can
direct the Hauler to load their trailers with less weight, if needed. There
are no RWQCP onsite zones or facilities for unloading excess material to
return a truck to a legal weight limit. There is no separate weigh scale
onsite to aid the Hauler in how much material to remove.
d. The RWQCP is not a staging or storage site. The City will not normally allow
a hauler to stage or store loaded trucks at the RWQCP or a Treatment
Facility, except permission may be granted for unusual circumstances.
9. TREATMENT REQUIREMENTS
a. If the treatment / disposal facility has a permit violation, they will notify
the Palo Alto project manager in writing within 30 days of receipt of
written notice. All fines will be paid by the treatment facility and not billed
to Palo Alto.
b. The treatment facility is required to provide adequate space to
accommodate the ingress and egress of the trucks and trailers of the City’s
sludge hauling contractor. The facility will provide water for vehicle clean-
up, suitable lighting for nighttime operation, and any additional facilities
(portable toilets, handwashing facilities) that may be required.
c. Treatment facility shall provide an annual summary to the City of all
monitoring and analytical data as required to complete the City’s Annual
Biosolids Generator’s Report for the USEPA due February 19th of each year.
This annual summary shall be posted by January 31st each year and shall
be sent to the Project Manager.
d. Treatment facility shall provide the name of a 24-hour emergency contact
person and phone number. Facility will train their onsite staff and comply
with Palo Alto Emergency and Spill Response Plan, as necessary.
e. City will have right to inspect treatment / disposal facility’s site at any time
and without prior notification. Treatment facility shall maintain and
provide copies to the City of all records, documents, and papers
DocuSign Envelope ID: CD2AAB48-F1DE-4C9B-9F2E-49DE8287B2F1
Item 4
Attachment B - Contract
C24187745B with
Synagro-WWT, Inc.
Item 4: Staff Report Pg. 51 Packet Pg. 142 of 428
City of Palo Alto General Services Agreement 19 Rev. March 29, 2018
documenting the disposition of biosolids handled by the facility for
inspection by authorized local, state, and federal representatives as
required by law.
f. Neither party shall use the name, marks, or logo of the other treatment
facility in any planned advertisement, promotional material, press release,
or other planned publicity or marking materials, in any form or media, with
regard to the subject matter of the agreement without the prior written
approval of the other party.
g. Treatment parties shall share any requirements and conditions to the
City’s Palo Alto’s contracted Hauler, if not already provided to the current
hauler (i.e., Denali). The contracted hauler may change on April 1, 2025 or
later, when the current 3-year hauling contract and any contract
extensions are completed. If a new hauler is contracted by the City, the
Treatment Facility shall promptly coordinate their requirements with the
new City hauler.
h. Annual reports shall be provided to the RWQCP each year detailing
tonnage treated and final disposal disposition.
i. Treatment facility dates, times, hours of operation, and holiday schedules
shall be provided to sludge haulers interested in proposing on services to
the City of Palo Alto.
10. PAYMENT AND PRICING CONDITIONS
a. See Attachment C – Contract, Section 8, Invoicing.
b. Payment for work is to be made on a wet tonnage basis. Weight shall be
based on a certified scale.
c. Except as directed otherwise in these specifications, full compensation for
completing Agreement work is considered to be included in the unit prices
paid for the various items of work and no separate payment will be made
therefore.
d. Invoicing. Submit a monthly invoice to:
Rwqcp.invoices@cityofpalolato.org
Palo Alto Regional Water Quality Control Plant
Attn: Project Manager, James Allen
2501 Embarcadero Way
Palo Alto, CA 94303
DocuSign Envelope ID: CD2AAB48-F1DE-4C9B-9F2E-49DE8287B2F1
Item 4
Attachment B - Contract
C24187745B with
Synagro-WWT, Inc.
Item 4: Staff Report Pg. 52 Packet Pg. 143 of 428
City of Palo Alto General Services Agreement 20 Rev. March 29, 2018
650-329-2598 - phone
Invoice shall include:
• Purchase Order Number
• Item description
• Copy of each load delivery tag along with the tons hauled
• Attached certified weight ticket for each load
• Certified net weight of each load times contract price per ton
11. DOCUMENTATION
a. The Contractor shall, at all times during the transportation, storage, and
disposal of sludge to be managed under this Agreement, know the
location, condition and status of each item being managed.
END OF SECTION
DocuSign Envelope ID: CD2AAB48-F1DE-4C9B-9F2E-49DE8287B2F1
Item 4
Attachment B - Contract
C24187745B with
Synagro-WWT, Inc.
Item 4: Staff Report Pg. 53 Packet Pg. 144 of 428
City of Palo Alto General Services Agreement 21 Rev. March 29, 2018
EXHIBIT A-1
PALO ALTO SLUDGE CHARACTERISTICS
DocuSign Envelope ID: CD2AAB48-F1DE-4C9B-9F2E-49DE8287B2F1
Item 4
Attachment B - Contract
C24187745B with
Synagro-WWT, Inc.
Item 4: Staff Report Pg. 54 Packet Pg. 145 of 428
City of Palo Alto General Services Agreement 22 Rev. March 29, 2018
EXHIBIT B
SCHEDULE OF PERFORMANCE
Alternative 1.
CONTRACTOR shall perform the Services according to the following schedule:
Daily sludge treatment from April 1, 2024 to March 31, 2029.
DocuSign Envelope ID: CD2AAB48-F1DE-4C9B-9F2E-49DE8287B2F1
Item 4
Attachment B - Contract
C24187745B with
Synagro-WWT, Inc.
Item 4: Staff Report Pg. 55 Packet Pg. 146 of 428
City of Palo Alto General Services Agreement 23 Rev. March 29, 2018
EXHIBIT C
SCHEDULE OF FEES
ALTERNATIVE 3. Compensation based upon fee schedule
CITY shall pay CONTRACTOR according to the following rate schedule. The maximum amount of
compensation to be paid to CONTRACTOR, including both payment for services and reimbursable expenses,
shall not exceed the amounts set forth in Sections 5 and 6 of the Agreement. Any services provided or hours
worked for which payment would result in a total exceeding the maximum amount of compensation set forth
herein shall be at no cost to CITY.
DETAILED RATE SCHEDULE
Contract Start Contract End
Synagro
Unit Price Synagro
04/01/24 03/30/25 $ 68.00 04/01/25 03/30/26 $ 72.08 4.8%
04/01/26 03/30/27 $ 76.40 4.8%
04/01/27 03/30/28 $ 80.99 4.8%
04/01/28 03/30/29 $ 85.85 4.8%
DocuSign Envelope ID: CD2AAB48-F1DE-4C9B-9F2E-49DE8287B2F1
Item 4
Attachment B - Contract
C24187745B with
Synagro-WWT, Inc.
Item 4: Staff Report Pg. 56 Packet Pg. 147 of 428
City of Palo Alto General Services Agreement 24 Rev. March 29, 2018
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
AGGREGATE
YES
YES EMPLOYER’S LIABILITY STATUTORY
YES GENERAL LIABILITY, INCLUDING
PERSONAL INJURY, BROAD FORM
PROPERTY DAMAGE BLANKET
CONTRACTUAL, AND FIRE LEGAL
LIABILITY
PROPERTY DAMAGE
BODILY INJURY & PROPERTY
DAMAGE COMBINED.
$2,000,000
$2,000,000
$2,000,000
$2,000,000
YES AUTOMOBILE LIABILITY,
INCLUDING ALL OWNED, HIRED,
NON-OWNED
- EACH PERSON
- EACH OCCURRENCE
PROPERTY DAMAGE
BODILY INJURY AND PROPERTY
$2,000,000
$2,000,000
$2,000,000
$2,000,000
$2,000,000
$2,000,000
$2,000,000
2,000,000
NO
INCLUDING, ERRORS AND
OMISSIONS, MALPRACTICE (WHEN
APPLICABLE), AND NEGLIGENT
YES POLLUTION LIABILITY ALL DAMAGES
YES : 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
COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS
I. INSURANCE COVERAGE MUST INCLUDE:
A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE
FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY.
II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED
COVERAGE.
III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO
“ADDITIONAL INSUREDS”
DocuSign Envelope ID: CD2AAB48-F1DE-4C9B-9F2E-49DE8287B2F1
Item 4
Attachment B - Contract
C24187745B with
Synagro-WWT, Inc.
Item 4: Staff Report Pg. 57 Packet Pg. 148 of 428
City of Palo Alto General Services Agreement 25 Rev. March 29, 2018
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
DocuSign Envelope ID: CD2AAB48-F1DE-4C9B-9F2E-49DE8287B2F1
Item 4
Attachment B - Contract
C24187745B with
Synagro-WWT, Inc.
Item 4: Staff Report Pg. 58 Packet Pg. 149 of 428
Attachment C
List of Key Terms
Alternative daily cover (ADC): ADC means cover material other than earthen material placed
on the surface of the active face of a municipal solid waste landfill at the end of each operating
day to control vectors, fires, odors, blowing litter, and scavenging. Federal regulations require
landfill operators to use six inches of earth material as daily cover unless other materials are
allowed as alternatives. CalRecycle has approved 11 ADC material types. Generally, these
materials must be processed so that they do not allow gaps in the exposed landfill face.
Anaerobic digestion: Anaerobic digestion is a collection of processes by which microorganisms
break down biodegradable material in the absence of oxygen.
Beneficial use: Use of a product with a defined benefit, such as biosolids used as soil
amendment. Disposal, such as landfilling or incineration, is not beneficial use.
Biogas: A mixture of different gases produced by the breakdown of organic matter in the
absence of oxygen to produce a renewable energy source when combusted.
Biosolids: Organic fertilizer or soil amendments produced by the treatment of domestic
wastewater. Biosolids consist primarily of dead microbes and other organic matter. Untreated
sludge or sludge that does not conform to regulated pollutants and pathogen treatment
requirements are not considered biosolids. Biosolids are regulated through the Environmental
Protection Agency Title 40 Code of Federal Regulations Part 503 Rule (often referred to as the
“503 Biosolids Rule”).
Biosolids land-application facility: A facility where biosolids are spread onto the land at
agronomic rates for production of food or fiber. The facility includes any structures necessary to
store the biosolids until the soil, weather, and crop conditions are favorable for land
application.
Class A biosolids: Material that has met the Class A pathogen reduction requirements or
equivalent treatment by a process to further reduce pathogens (PFRP) in accordance with 40
CFR 503. Processes include composting, heat drying, heat treatment, thermophilic aerobic
digestion, beta or gamma ray irradiation, and pasteurization.
Class B biosolids: Material that has met the Class B pathogen reduction requirements or
equivalent treatment by a process to significantly reduce pathogens (PSRP) in accordance with
40 CFR 503. Processes include aerobic digestion, composting, anaerobic digestion, lime
stabilization, and air drying.
Dewatering; dewatered biosolids: A process used to remove water from biosolids producing
dewatered biosolids that contain equal to or greater than 20 percent dry solids.
Item 4
Attachment C - Key Terms
Item 4: Staff Report Pg. 59 Packet Pg. 150 of 428
Dry weight basis: Calculated on the basis of having been dried at 105 degrees Celsius until
reaching a constant mass (i.e., essentially 100 percent solids).
40 CFR 503: Regulations for setting "Standards for the use or disposal of sewage sludge," Title
40 Code of Federal Regulations Part 503.
Gasification: Thermal process to convert carbon-based material into a synthesis gas.
Gasification is different from incineration, which uses large amounts of air for combustion to
make carbon dioxide and heat. Gasification is in a typical temperature range of 900°F to 3000°F
with a limited supply of air or oxygen, only a fraction of what is used in incineration. The
synthesis gas can be used as a fuel to make electricity. There are no known sewage sludge
gasification systems operating in the US solely on sewage sludge.
Land application: The beneficial use of biosolids applied to land based upon crop needs and the
composition of biosolids.
Pathogen: An organism capable of causing a susceptible host to develop a disease or infection.
Pyrolysis: Thermal process to convert carbon-based material into a synthesis gas. Pyrolysis is
different from incineration, which uses large amounts of air for combustion to make carbon
dioxide and heat. Pyrolysis uses an indirect source of heat to thermally decompose organic
materials, in a typical temperature range of 400°F to 1400°F, and in the absence of air or
oxygen. The unreacted fixed carbon component of the material, along with any inorganic
materials, forms a char/ash mixture that remains as a residual. The synthesis gas can be used as
a fuel to make electricity and/or as heat used in a biodryer (as in the patented BioForceTech
system) to offset external fuel sources for drying the sludge.
Sludge: The solid, semi-solid, or liquid residue removed during the treatment of wastewater.
Thermal hydrolysis process (THP) (Lystek Technology): Lystek’s THP is a low temperature and
pressure process that disintegrates microbial cell walls and hydrolyzes complex
macromolecules into simpler components. It uses digested or undigested sludge as a feedstock,
breaks the feedstock down in a reactor using high speed shearing, uses alkali treatment to
increase pH, and is completed with injection of low temperature and low-pressure steam.
Lystek’s THP differs from the CAMBI process evaluated in the Biosolids Facilities Plan; the
CAMBI THP operated at a higher temperature and pressure, utilized pretreatment screening
and pre-thickening, and did not use alkali treatment.
Thermophilic digester: A type of anaerobic digester that operates at temperatures above 50°C
and produces biogas.
Vectors: Rodents, flies, mosquitoes, or other organisms capable of transporting infectious
agents.
Item 4
Attachment C - Key Terms
Item 4: Staff Report Pg. 60 Packet Pg. 151 of 428
City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Police
Meeting Date: February 12, 2024
Report #:2311-2300
TITLE
Adoption of Resolution to Authorize Stanford University to Enforce Unauthorized Parking in
Several of Its Parking Facilities under Vehicle Code § 21107.8; CEQA Status – Not a Project
RECOMMENDATION
Staff recommends that the City Council adopt the attached resolution to authorize Stanford
University to enforce parking regulations in several of its privately-owned parking facilities in
the jurisdiction of the City of Palo Alto.
EXECUTIVE SUMMARY
The City of Palo Alto (City), having jurisdictional California Vehicle Code (CVC) and Palo Alto
Municipal Code (PAMC) authority over parking enforcement of Stanford University's (Stanford)
parking lots within the City, considers granting Stanford expanded license to conduct parking
enforcement on designated parking facilities under Stanford control including all Stanford
medical facilities and some residences. Stanford can conduct private parking enforcement on
privately owned off-street parking areas in the City of Palo Alto if the City authorizes such activity
by resolution in accordance with CVC 21107.8. This action will expand Stanford’s parking program
in Palo Alto beyond the current limited scope of Hoover Pavilion and Stanford Cancer Center to
include all properties operating under the brand “Stanford Health Care” as well as certain multi-
unit residences along Sand Hill Road, commonly referred to as Stanford West Apartments and
Oak Creek Apartments. This action would “catch-up” or “catch-all” most additional health
properties constructed and controlled by Stanford and some multi-unit residence complexes that
have not already been authorized for enforcement by Stanford. The City will maintain traditional
police response for calls for service at these locations.
Item 5
Item 5 Staff Report
Item 5: Staff Report Pg. 1 Packet Pg. 152 of 428
BACKGROUND
1), which authorized Stanford to conduct permit enforcement in parking lots in and
around the Hoover Pavilion and the Stanford Cancer Center. As a result, since that time, Stanford
has managed permit parking in these areas, with Palo Alto Police Department (PAPD) personnel
conducting enforcement of CVC violations (e.g. disabled parking violations, fire lane violations,
loading zone violations, etc.) on a complaint basis only. This arrangement has worked well.
ANALYSIS
1 City Council, February 5, 2018, Item 3, SR# 8775
https://cityofpaloalto.primegov.com/Public/CompiledDocument?meetingTemplateId=2551&compileOutputType=
1
Item 5
Item 5 Staff Report
Item 5: Staff Report Pg. 2 Packet Pg. 153 of 428
calls for service related to permit parking issues in the subject area will be routed to Stanford
Transportation while police calls for service will continue to be serviced by PAPD.
TIMELINE
Parking enforcement will be relinquished shortly after the approval of the attached resolution on
a date mutually agreeable to both Stanford and the City of Palo Alto but no later than 90 days.
FISCAL/RESOURCE IMPACT
There are no material changes to the costs and operations of the City’s parking program services
by the Police Department, related to this Stanford enforcement. This analysis and reporting were
prepared using existing City staff. No additional staff or operating budget resources are necessary
to accept the resolution.
STAKEHOLDER ENGAGEMENT
Stanford University, Stanford Health Care, and Lucile Salter Packard Children’s Hospital at
Stanford.
ENVIRONMENTAL REVIEW
The California Public Resources Code § 21065 includes a definition of a “project” as subject to the
California Environmental Quality Act (CEQA) if it is an activity directly undertaken by a public
agency which may cause either a direct physical change in the environment, or a reasonably
foreseeable indirect physical change in the environment. This project is exempt from the
provisions of the CEQA, pursuant to Section 15061(b)(3) of the CEQA Guidelines, because it can
be seen with certainty that there is no possibility that the activity will have a significant effect on
the environment.
ATTACHMENTS
Attachment A: Resolution Authorizing Stanford University to Enforce Unauthorized Parking in
Several of Its Parking Facilities
APPROVED BY:
Andrew Binder, Police Chief
Item 5
Item 5 Staff Report
Item 5: Staff Report Pg. 3 Packet Pg. 154 of 428
104_20240125_ts24
Resolution No.
Resolution of the Council of the City of Palo Alto Authorizing
Private Enforcement of Unauthorized Parking at Several Stanford Parking Facilities
The Council of the City of Palo Alto RESOLVES as follows:
SECTION 1. Findings and Declarations.
a. The off‐street parking facilities described in Exhibit A to this Resolution (collectively, the
“Stanford Public Parking Facilities”) are generally held open for public vehicular parking and
are privately‐owned and ‐maintained by Stanford University, through its Office of Parking
and Transportation Services.
b. California Vehicle Code section 21107.8 authorizes the private enforcement of
unauthorized parking in such privately owned parking facilities.
c. Stanford University has requested the ability to enforce parking regulations in the
Stanford Public Parking Facilities.
SECTION 2. Authorization for Private Enforcement.
a. Stanford University is hereby authorized to regulate unauthorized parking in the Stanford
Public Parking Facilities and shall be responsible for issuing and processing parking
violations, subject to the provisions Vehicle Code section 21107.8. Specifically, and
without limitation:
1. Stanford University shall provide all notices and instructions required under
Vehicle Code section 21107.8.
2. It shall be unlawful to offer incentives based on the number of invoices issued or
the number or percent of disputed invoices adjudicated that uphold parking
charges.
3. Penalties for parking violations in the Stanford Public Parking Facilities shall not
exceed the penalties applicable to similar violations in City‐regulated parking
areas, as provided in the most recently adopted Palo Alto Administrative and Civil
Penalty Schedule, including, without limitation, the penalties applicable to
overtime parking in a City lot and unpermitted parking in a City permit area.
4. Parking fee invoices shall include a conspicuous statement to the effect that “This
parking invoice fee notice is not issued by the City of Palo Alto.” It shall be unlawful
for Stanford University or its agents to represent itself as a government
enforcement agency or to use terminology that is restricted to governmental law
enforcement.
b. Stanford University as the enforcement entity is the beneficiary of monies collected from
parking invoice fees.
Item 5
Attachment A -
Resolution Authorizing
Stanford University to
Enforce Unauthorized
Parking in Several of Its
Parking Facilities
Item 5: Staff Report Pg. 4 Packet Pg. 155 of 428
104_20240125_ts24
SECTION 3. Dispute Resolution.
a. Stanford University shall adopt and publish dispute resolution procedures for parking
penalties consistent with Vehicle Code section 40215 and that shall include, at a
minimum:
1. Specified time periods for notifications, review, and appeal.
2. The ability to request an administrative review.
3. The ability to request an administrative hearing, in person or by mail, before a
third‐party examiner who has been adequately trained and who provides an
independent, objective, fair, and impartial review.
i. The examiner shall be empowered to allow payment of the parking
invoice fee in installments for persons showing evidence of inability to
pay the parking invoice fee in full.
ii. The examiner’s decision shall be delivered by personal delivery or by first‐
class mail.
b. In the event Stanford University fails to adopt a policy as required by subsection (a), the
following procedures shall apply:
1. Within twenty‐one calendar days of the issuance of a notice of parking violation or
within fourteen calendar days from the mailing of a notice of delinquent parking
violation (whichever is later), a person may request (by telephone, in writing, or in
person) an initial review by Stanford University. Upon this review, the notice of
parking violation or notice of delinquent parking violation and all penalties and
fees based thereon may be canceled by Stanford University if a determination is
made that either the violation did not occur, that extenuating circumstances make
dismissal of the citation appropriate in the interest of justice, or that the registered
owner was not responsible for the violation; however, under no circumstances
shall a personal relationship with Stanford University or any of its agents be
grounds for cancellation.
i. There shall be no charge for this review.
ii. The decision of Stanford University shall be mailed to the person
requesting review.
iii. If the review does not result in cancellation, the decision shall include a
reason for that denial, notification of the ability to request an
administrative hearing, and notice of the procedure for waiving
prepayment of the parking penalty based upon an inability to pay.
2. If the person is dissatisfied with the results of the initial review, the person may
request an administrative hearing of the violation no later than 21 calendar days
following the mailing of the results of the initial review.
i. The request may be made by telephone (or virtually), in writing, or in person.
ii. The person requesting an administrative hearing shall deposit the amount
of the parking penalty with the processing agency. If the person provides
proof of financial inability to deposit the full amount of the
parking violation (according to standards developed and included in the
Item 5
Attachment A -
Resolution Authorizing
Stanford University to
Enforce Unauthorized
Parking in Several of Its
Parking Facilities
Item 5: Staff Report Pg. 5 Packet Pg. 156 of 428
104_20240125_ts24
Stanford University’s notice of decision upon initial review), the requirement
for payment of the parking penalty as a prerequisite to contesting it shall be
waived.
iii. The person requesting a hearing shall have the choice of a hearing by
mail or in person. An in‐person hearing shall be conducted within
Stanford University’s main campus.
iv. The hearing shall be held before a third‐party examiner who has been
adequately trained and who provides an independent, objective, fair, and
impartial review in accordance with Vehicle Code section 40215(c)(4).
v. The examiner’s decision following the administrative hearing may be
personally delivered to the person by the examiner or sent by first‐class
mail, and, if the notice is not cancelled, include a written reason for that
denial.
vi. The examiner may allow deferred payment of the parking penalty, payment
in installments, or the performance of community service in lieu of
payment, if the person produces satisfactory evidence of inability to pay the
penalty in full.
//
//
//
//
//
//
Item 5
Attachment A -
Resolution Authorizing
Stanford University to
Enforce Unauthorized
Parking in Several of Its
Parking Facilities
Item 5: Staff Report Pg. 6 Packet Pg. 157 of 428
104_20240125_ts24
SECTION 4. Environmental Review. The Council finds that the adoption of this
resolution is exempt from review under the California Environmental Quality Act because it can be
seen with certainty that there is no possibility of a significant effect on the environment as a result
of the transfer of enforcement parking authority from the City to Stanford University.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
Assistant City Attorney City Manager
Chief of Police
Item 5
Attachment A -
Resolution Authorizing
Stanford University to
Enforce Unauthorized
Parking in Several of Its
Parking Facilities
Item 5: Staff Report Pg. 7 Packet Pg. 158 of 428
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777 Welch900 Welch
1000 Welch
300 Pasteur200 Pasteur
730 Welch
1100 Welch
1190 Welch
213 Quarry
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1189 Welch 500 Pasteur
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DOCUMENT PATH\\ M:\Groups\_Integration Solutions-GIS\Projects\_LUEP- Land Use Environmental Planning\Map_Requests\Enforcement_Map_L_Lowe_20230810\ExhA_ParkEnf_SHR_Welch_Pasteur_Quarry.mxd
This map was produced by
StanfordUniversity's Maps& Records. COPYRIGHTBoardof TrusteesofStanford University.
Reproductiononlywiththepermissionofthe
Office of Mapsand Records.Date:9/28/2023
Legend
Stanford University Boundary
Area proposed for Stanford
coordinated parking enforcement
Exhibit A.
Address Description City State ZIP
875-900 Blake Wilbur Advanced Medicine Center & Clinic Palo Alto CA 94305
625 Clark Way Stanford West Child Care Center Palo Alto CA 94305
700 Clark Way Stanford West Apartments Palo Alto CA 94304
200 Pasteur Drive Parking Garage Palo Alto CA 94304
300 Pasteur Drive Lane Building Palo Alto CA 94305
500 Pasteur Drive Stanford Hospital Palo Alto CA 94305
213 Quarry Road Hoover Pavilion Palo Alto CA 94304
900 Quarry Road Ext. Stanford Hospital Palo Alto CA 94305
700 Welch Road Old Winery Palo Alto CA 94305
725 Welch Road LPCH Main & West Garages Palo Alto CA 94304
730 Welch Road Pediatric Ambulatory Care Center Palo Alto CA 94304
750 Welch Road Office Building Palo Alto CA 94304
770 Welch Road Clinical & Office Building Palo Alto CA 94304
777 Welch Road Office Building Palo Alto CA 94304
801 Welch Road Office Building Palo Alto CA 94304
900 Welch Road Office Building Palo Alto CA 94304
1000 Welch Road Office Building Palo Alto CA 94304
1059 Welch Road Parking lot Palo Alto CA 94304
1100 Welch Road Welch Road Apartments Palo Alto CA 94304
1180 Welch Road Parking Lot Palo Alto CA 94304
1189 Welch Road Stanford Hospital Parking Structure Palo Alto CA 94304
1190 Welch Road Parking Lot Palo Alto CA 94304
1199 Welch Road Parking Lot Palo Alto CA 94304
1600 Sand Hill Road Oak Creek Apartments Palo Alto CA 94305
Item 5
Attachment A -
Resolution Authorizing
Stanford University to
Enforce Unauthorized
Parking in Several of Its
Parking Facilities
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Police
Meeting Date: February 12, 2024
Report #:2401-2545
TITLE
Approval of Contract Number C24188120 with Summit Uniforms, LLC for Five Years for a
Maximum Compensation Amount Not-to-Exceed $720,000 ($144,000/yr) for the Purchase of
Police, Fire, and Park Ranger Uniforms and Related Equipment; CEQA status - not a project.
RECOMMENDATION
Staff recommends the City Council approve and authorize the City Manager or their designee to
approve Contract Number C24188120 with Summit Uniforms, LLC for five years for a maximum
compensation amount not-to-exceed $720,000 ($144,000/yr) for the purchase of police, fire, and
park ranger uniforms and related equipment.
BACKGROUND
This contract and subsequent blanket purchase order is for collectively supplying police, fire, and
park ranger personnel with uniforms and equipment. These supplies include uniforms and, for
police staff and park rangers, some equipment worn on the body. For police, this includes ballistic
vests, boots, and duty belts along with most of the equipment on the duty belt (except for a
firearm and body worn camera). Uniforms require tailoring in some cases. Uniforms and related
equipment are essential to maintaining a professional appearance for the community,
performing critical duties, and keeping employees and the public safe. Supplying uniforms to
employees is also part of the labor agreements.
The Police Department, Fire Department, and Community Services Department purchase
uniforms and equipment for their uniformed personnel on a regular ongoing basis. Police staff
include uniform police officers, records staff, animal control officers, and community service
officers. These departments must buy uniforms for all new employees and replace existing
uniforms routinely due to wear. For the police staff, uniforms and ballistic vests are custom-fitted
to each officer, which, in most cases, prevents them from being reused or recycled. Ballistic vests,
worn by some police and fire staff, have a shelf life requiring them to be replaced every five years.
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Uniforms are part of the personal protective equipment (PPE) staff uses to mitigate risk of
exposure to common hazards.
With the existing contract’s expiration on December 31, 2023, the City issued a Request for
Proposal (RFP) in OpenGov, a public bidding platform. Staff directly notified three local suppliers
of inventoried uniforms and duty belt equipment. Staff chose these three potential vendors
because of proximity to the City since local services for alterations and fitting are required. The
City received a single response from Summit Uniforms, LLC (Summit Uniforms) through the RFP
process.
ANALYSIS
The City published an RFP four months ago and 116 registered vendors downloaded the RFP.
Summit Uniforms submitted the only response. Summit Uniforms provides uniforms to local
public safety agencies and the United States Postal Service (USPS), Valley Transportation
Authority (VTA), local park services, and security services. They have decades of extensive
knowledge regarding all ranks of law enforcement and fire departments and understand the
needs of other uniformed services. Summit Uniforms has an on-site, full-service tailor shop in San
Jose. Palo Alto public safety personnel require a location within driving distance for fittings and
uniform pick-up/drop-off.
Solicitation Process
Staff posted an RFP for the project on the OpenGov portal and directly notified three local
vendors. Staff posted the solicitation for 31 days and received one proposal. The solicitation
closed on October 11, 2023.
Table #1: Summary of Request for Proposal
Proposal Description
Proposed Length of Project
Number of Vendors Notified
Number of Proposal Packages Downloaded
Total Days to Respond to Proposal
Pre-Proposal Meeting
Pre-Proposal Meeting Date
Number of Proposals Received
Proposal Price Range
Public Link to Solicitation
When the other two vendors (one in San Mateo County and one in Alameda County) were asked
why they did not bid, their reply was they do not inventory and supply the brand of department
uniforms specified in the bid. Specifically, the other two local vendors do not carry the same
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manufacturer specifications as currently worn by City staff. The other products inventoried would
effectively have current staff in a different looking uniform from future staff.
It should be noted management staff has been adding less expensive options to the specifications
when practical. For example, for day-to-day use, staff is encouraged to use the polyester uniform,
which is less expensive to the traditional wool uniform, which provide better personal protection.
Some city uniform specifications include field uniforms (sometimes referred to as tactical dress
uniforms or battle dress uniforms) for specific traffic or tactical assignments, paramedic services,
or animal control because rips and tears are more common, and those uniforms are less
expensive to replace or patch.
The previous City supply contract was with Summit Uniforms (contract #C19172451 from 2018-
20231). Costs, in most cases, have risen since the previous contract. The average increase since
2018 is 17%, which represents 2.83% per year. Bullet proof vests increased 25% from six years
ago. Staff recommends the City contract with Summit Uniforms for another five years and staff
will continue to evaluate the specifications for less expensive options that provide the required
protection and professional image.
FISCAL/RESOURCE IMPACT
This contract was created using existing resources. The ”not-to-exceed" cost of this contract is
$144,000 per year across three departments. The Department operating budgets will fund this
contract. Should the budget not be available to service this contract, the individual departments
will seek a budget change within the normal course of the budgeting cycle, which will include
Council authorization. For reference, the cost to outfit a new police officer with uniforms and
equipment is approximately $5,300. Each department expects to have an annual expense of:
STAKEHOLDER ENGAGEMENT
This contract is for purchasing public safety uniforms and equipment and does not involve or
impact any stakeholders.
1 City Council, June 25, 2018, Agenda Item #16, Report # 9267
https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=2163&dbid=0&repo=PaloAlto
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ENVIRONMENTAL REVIEW
ATTACHMENTS
APPROVED BY:
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City of Palo Alto General Services Agreement 1 Rev. March 29, 2018
CITY OF PALO ALTO CONTRACT NO. C24188120
GENERAL SERVICES AGREEMENT
THIS AGREEMENT made and entered into on the 12th day of February, 2024, by and
between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”),
and SUMMIT UNIFORMS, LLC, a Limited Liability Company, located at 545 Meridian Ave.,
Suite A, San Jose, CA 95126, Telephone Number: 408-708-0698 (“CONTRACTOR”). In
consideration of their mutual covenants, the parties hereto agree as follows:
1. SERVICES. CONTRACTOR shall provide or furnish the services (the “Services”)
described in the Scope of Services, attached at Exhibit A.
2. EXHIBITS. The following exhibits are attached to and made a part of this
Agreement:
“A” - Scope of Services
“B” - Schedule of Performance
“C” – Schedule of Fees
“D” - Insurance Requirements
CONTRACT IS NOT COMPLETE UNLESS ALL INDICATED EXHIBITS ARE ATTACHED.
3. TERM.
The term of this Agreement is from February 12, 2024 to February 11, 2029
inclusive, subject to the provisions of Sections R and W of the General Terms and
Conditions.
4. SCHEDULE OF PERFORMANCE. CONTRACTOR shall complete the Services within
the term of this Agreement in a reasonably prompt and timely manner based upon
the circumstances and direction communicated to CONTRACTOR, and if
applicable, in accordance with the schedule set forth in the Schedule of
Performance, attached at Exhibit B. Time is of the essence in this Agreement.
5. COMPENSATION FOR ORIGINAL TERM. CITY shall pay and CONTRACTOR agrees
to accept as not-to-exceed compensation for the full performance of the Services
and reimbursable expenses, if any:
The total maximum lump sum compensation of dollars ($ );
OR
The sum of dollars ($ ) per hour, not to exceed a total
maximum compensation amount of dollars ($ ); OR
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City of Palo Alto General Services Agreement 2 Rev. March 29, 2018
A sum calculated in accordance with the fee schedule set forth at Exhibit
C, not to exceed a total maximum compensation amount of One Hundred
Forty-Four Thousand dollars per year ($144,000/year) for a not to exceed
maximum compensation amount of Seven Hundred Twenty Thousand
dollars ($720,000) for all five years.
CONTRACTOR agrees that it can perform the Services for an amount not to exceed
the total maximum compensation set forth above. Any hours worked or services
performed by CONTRACTOR for which payment would result in a total exceeding
the maximum amount of compensation set forth above for performance of the
Services shall be at no cost to CITY.
CITY has set aside the sum of dollars ($ ) for Additional
Services. CONTRACTOR shall provide Additional Services only by
advanced, written authorization from the City Manager or designee.
CONTRACTOR, at the CITY’s request, shall submit a detailed written
proposal including a description of the scope of services, schedule, level of
effort, and CONTRACTOR’s proposed maximum compensation, including
reimbursable expense, for such services. Compensation shall be based on
the hourly rates set forth above or in Exhibit C (whichever is applicable), or
if such rates are not applicable, a negotiated lump sum. CITY shall not
authorize and CONTRACTOR shall not perform any Additional Services for
which payment would exceed the amount set forth above for Additional
Services. Payment for Additional Services is subject to all requirements and
restrictions in this Agreement.
6. COMPENSATION DURING ADDITIONAL TERMS.
CONTRACTOR’S compensation rates for each additional term shall be the
same as the original term; OR
CONTRACTOR’s compensation rates shall be adjusted effective on the
commencement of each Additional Term. The lump sum compensation
amount, hourly rates, or fees, whichever is applicable as set forth in section
5 above, shall be adjusted by a percentage equal to the change in the
Consumer Price Index for Urban Wage Earners and Clerical Workers for the
San Francisco-Oakland- San Jose area, published by the United States
Department of Labor Statistics (CPI) which is published most immediately
preceding the commencement of the applicable Additional Term, which
shall be compared with the CPI published most immediately preceding the
commencement date of the then expiring term. Notwithstanding the
foregoing, in no event shall CONTRACTOR’s compensation rates be
increased by an amount exceeding five percent of the rates effective
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City of Palo Alto General Services Agreement 3 Rev. March 29, 2018
during the immediately preceding term. Any adjustment to
CONTRACTOR’s compensation rates shall be reflected in a written
amendment to this Agreement.
7.CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS”. For purposes of
this Section 7, a “9204 Public Works Project” means the erection, construction,
alteration, repair, or improvement of any public structure, building, road, or
other public improvement of any kind. Public Contract Code Section 9204
mandates certain claims procedures for Public Works Projects, which are set
forth in “Appendix __ Claims for Public Contract Code Section 9204 Public Works
Projects”.
This project is a 9204 Public Works Project and is required to comply with
the claims procedures set forth in Appendix __, attached hereto and
incorporated herein.
OR
This project is not a 9204 Public Works Project.
8.INVOICING. Send all invoices to CITY, Attention: Project Manager. The Project
Manager is Michael Kan, Dept.: Police, Telephone: 650-656-5324. The Project
Manager for Fire: Kevin McNally, Dept.: Fire, Telephone: (650)329-2265. Invoices
shall be submitted in arrears for Services performed. Invoices shall not be
submitted more frequently than monthly. Invoices shall provide a detailed
statement of Services performed during the invoice period and are subject to
verification by CITY. CITY shall pay the undisputed amount of invoices within 30
days of receipt.
GENERAL TERMS AND CONDITIONS
A.ACCEPTANCE. CONTRACTOR accepts and agrees to all terms and conditions of
this Agreement. This Agreement includes and is limited to the terms and
conditions set forth in sections 1 through 8 above, these general terms and
conditions and the attached exhibits.
B.QUALIFICATIONS. CONTRACTOR represents and warrants that it has the expertise
and qualifications to complete the services described in Section 1 of this
Agreement, entitled “SERVICES,” and that every individual charged with the
performance of the services under this Agreement has sufficient skill and
experience and is duly licensed or certified, to the extent such licensing or
certification is required by law, to perform the Services. CITY expressly relies on
CONTRACTOR’s representations regarding its skills, knowledge, and certifications.
CONTRACTOR shall perform all work in accordance with generally accepted
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City of Palo Alto General Services Agreement 4 Rev. March 29, 2018
business practices and performance standards of the industry, including all
federal, state, and local operation and safety regulations.
C. INDEPENDENT CONTRACTOR. It is understood and agreed that in the
performance of this Agreement, CONTRACTOR and any person employed by
CONTRACTOR shall at all times be considered an independent CONTRACTOR and
not an agent or employee of CITY. CONTRACTOR shall be responsible for
employing or engaging all persons necessary to complete the work required under
this Agreement.
D. SUBCONTRACTORS. CONTRACTOR may not use subcontractors to perform any
Services under this Agreement unless CONTRACTOR obtains prior written consent
of CITY. CONTRACTOR shall be solely responsible for directing the work of
approved subcontractors and for any compensation due to subcontractors.
E. TAXES AND CHARGES. CONTRACTOR shall be responsible for payment of all taxes,
fees, contributions or charges applicable to the conduct of CONTRACTOR’s
business.
F. COMPLIANCE WITH LAWS. CONTRACTOR shall in the performance of the Services
comply with all applicable federal, state and local laws, ordinances, regulations,
and orders.
G. PALO ALTO MINIMUM WAGE ORDINANCE. CONTRACTOR shall comply with all
requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum
Wage), as it may be amended from time to time. In particular, for any employee
otherwise entitled to the State minimum wage, who performs at least two (2)
hours of work in a calendar week within the geographic boundaries of the City,
CONTRACTOR shall pay such employees no less than the minimum wage set
forth in Palo Alto Municipal Code section 4.62.030 for each hour worked within
the geographic boundaries of the City of Palo Alto. In addition, CONTRACTOR
shall post notices regarding the Palo Alto Minimum Wage Ordinance in
accordance with Palo Alto Municipal Code section 4.62.060.
H. DAMAGE TO PUBLIC OR PRIVATE PROPERTY. CONTRACTOR shall, at its sole
expense, repair in kind, or as the City Manager or designee shall direct, any
damage to public or private property that occurs in connection with
CONTRACTOR’s performance of the Services. CITY may decline to approve and
may withhold payment in whole or in part to such extent as may be necessary to
protect CITY from loss because of defective work not remedied or other damage
to the CITY occurring in connection with CONTRACTOR’s performance of the
Services. CITY shall submit written documentation in support of such withholding
upon CONTRACTOR’s request. When the grounds described above are removed,
payment shall be made for amounts withheld because of them.
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City of Palo Alto General Services Agreement 5 Rev. March 29, 2018
I. WARRANTIES. CONTRACTOR expressly warrants that all services provided under
this Agreement shall be performed in a professional and workmanlike manner in
accordance with generally accepted business practices and performance
standards of the industry and the requirements of this Agreement. CONTRACTOR
expressly warrants that all materials, goods and equipment provided by
CONTRACTOR under this Agreement shall be fit for the particular purpose
intended, shall be free from defects, and shall conform to the requirements of this
Agreement. CONTRACTOR agrees to promptly replace or correct any material or
service not in compliance with these warranties, including incomplete, inaccurate,
or defective material or service, at no further cost to CITY. The warranties set
forth in this section shall be in effect for a period of one year from completion of
the Services and shall survive the completion of the Services or termination of this
Agreement.
J. MONITORING OF SERVICES. CITY may monitor the Services performed under this
Agreement to determine whether CONTRACTOR’s work is completed in a
satisfactory manner and complies with the provisions of this Agreement.
K. CITY’S PROPERTY. Any reports, information, data or other material (including
copyright interests) developed, collected, assembled, prepared, or caused to be
prepared under this Agreement will become the property of CITY without
restriction or limitation upon their use and will not be made available to any
individual or organization by CONTRACTOR or its subcontractors, if any, without
the prior written approval of the City Manager.
L. AUDITS. CONTRACTOR agrees to permit CITY and its authorized representatives
to audit, at any reasonable time during the term of this Agreement and for three
(3) years from the date of final payment, CONTRACTOR’s records pertaining to
matters covered by this Agreement. CONTRACTOR agrees to maintain accurate
books and records in accordance with generally accepted accounting principles for
at least three (3) following the terms of this Agreement.
M. 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.
N. INSURANCE. CONTRACTOR, at its sole cost, shall purchase and maintain in full
force during the term of this Agreement, the insurance coverage described at
Exhibit D. Insurance must be provided by companies with a Best’s Key Rating of A-
:VII or higher and which are otherwise acceptable to CITY’s Risk Manager. The Risk
Manager must approve deductibles and self-insured retentions. In addition, all
policies, endorsements, certificates and/or binders are subject to approval by the
Risk Manager as to form and content. CONTRACTOR shall obtain a policy
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City of Palo Alto General Services Agreement 6 Rev. March 29, 2018
endorsement naming the City of Palo Alto as an additional insured under any
general liability or automobile policy. CONTRACTOR shall obtain an endorsement
stating that the insurance is primary coverage and will not be canceled or
materially reduced in coverage or limits until after providing 30 days prior written
notice of the cancellation or modification to the Risk Manager. CONTRACTOR shall
provide certificates of such policies or other evidence of coverage satisfactory to
the Risk Manager, together with the required endorsements and evidence of
payment of premiums, to CITY concurrently with the execution of this Agreement
and shall throughout the term of this Agreement provide current certificates
evidencing the required insurance coverages and endorsements to the Risk
Manager. CONTRACTOR shall include all subcontractors as insured under its
policies or shall obtain and provide to CITY separate certificates and endorsements
for each subcontractor that meet all the requirements of this section. The
procuring of such required policies of insurance shall not operate to limit
CONTRACTOR’s liability or obligation to indemnify CITY under this Agreement.
O. HOLD HARMLESS. To the fullest extent permitted by law and without limitation
by the provisions of section N relating to insurance, CONTRACTOR shall indemnify,
defend and hold harmless CITY, its Council members, officers, employees and
agents from and against any and all demands, claims, injuries, losses, or liabilities
of any nature, including death or injury to any person, property damage or any
other loss and including without limitation all damages, penalties, fines and
judgments, associated investigation and administrative expenses and defense
costs, including, but not limited to reasonable attorney’s fees, courts costs and
costs of alternative dispute resolution), arising out of, or resulting in any way from
or in connection with the performance of this Agreement. CONTRACTOR’s
obligations under this Section apply regardless of whether or not a liability is
caused or contributed to by any negligent (passive or active) act or omission of
CITY, except that CONTRACTOR shall not be obligated to indemnify for liability
arising from the sole negligence or willful misconduct of CITY. The acceptance of
the Services by CITY shall not operate as a waiver of the right of indemnification.
The provisions of this Section survive the completion of the Services or
termination of this Agreement.
P. NON-DISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510,
CONTRACTOR certifies that in the performance of this Agreement, it shall not
discriminate in the employment of any person because of the race, skin color,
gender, age, religion, disability, national origin, ancestry, sexual orientation,
housing status, marital status, familial status, weight or height of such person.
CONTRACTOR acknowledges that it has read and understands the provisions of
Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination
Requirements and the penalties for violation thereof, and agrees to meet all
requirements of Section 2.30.510 pertaining to nondiscrimination in employment.
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City of Palo Alto General Services Agreement 7 Rev. March 29, 2018
Q. WORKERS' COMPENSATION. CONTRACTOR, by executing this Agreement,
certifies that it is aware of the provisions of the Labor Code of the State of Califor-
nia which require every employer to be insured against liability for workers'
compensation or to undertake self-insurance in accordance with the provisions of
that Code, and certifies that it will comply with such provisions, as applicable,
before commencing and during the performance of the Services.
R. TERMINATION. The City Manager may terminate this Agreement without cause
by giving ten (10) days’ prior written notice thereof to CONTRACTOR. If
CONTRACTOR fails to perform any of its material obligations under this
Agreement, in addition to all other remedies provided by law, the City Manager
may terminate this Agreement immediately upon written notice of termination.
Upon receipt of such notice of termination, CONTRACTOR shall immediately
discontinue performance. CITY shall pay CONTRACTOR for services satisfactorily
performed up to the effective date of termination. If the termination is for cause,
CITY may deduct from such payment the amount of actual damage, if any,
sustained by CITY due to CONTRACTOR’s failure to perform its material obligations
under this Agreement. Upon termination, CONTRACTOR shall immediately deliver
to the City Manager any and all copies of studies, sketches, drawings,
computations, and other material or products, whether or not completed,
prepared by CONTRACTOR or given to CONTRACTOR, in connection with this
Agreement. Such materials shall become the property of CITY.
S. ASSIGNMENTS/CHANGES. This Agreement binds the parties and their successors
and assigns to all covenants of this Agreement. This Agreement shall not be
assigned or transferred without the prior written consent of CITY. No
amendments, changes or variations of any kind are authorized without the written
consent of CITY.
T. CONFLICT OF INTEREST. In accepting this Agreement, CONTRACTOR covenants
that it presently has no interest, and will not acquire any interest, direct or
indirect, financial or otherwise, which would conflict in any manner or degree with
the performance of this Agreement. CONTRACTOR further covenants that, in the
performance of this Agreement, it will not employ any person having such an
interest. CONTRACTOR certifies that no CITY officer, employee, or authorized
representative has any financial interest in the business of CONTRACTOR and that
no person associated with CONTRACTOR has any interest, direct or indirect, which
could conflict with the faithful performance of this Agreement. CONTRACTOR
agrees to advise CITY if any conflict arises.
U. GOVERNING LAW. This Agreement shall be governed and interpreted by the laws
of the State of California.
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City of Palo Alto General Services Agreement 8 Rev. March 29, 2018
V. ENTIRE AGREEMENT. This Agreement, including all exhibits, represents the entire
agreement between the parties with respect to the services that may be the
subject of this Agreement. Any variance in the exhibits does not affect the validity
of the Agreement and the Agreement itself controls over any conflicting provisions
in the exhibits. This Agreement supersedes all prior agreements, representations,
statements, negotiations and undertakings whether oral or written.
W. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the
Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement
will terminate without any penalty (a) at the end of any fiscal year in the event
that funds are not appropriated for the following fiscal year, or (b) at any time
within a fiscal year in the event that funds are only appropriated for a portion of
the fiscal year and funds for this 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.
X. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE
REQUIREMENTS. CONTRACTOR shall comply with CITY’s Environmentally
Preferred Purchasing policies which are available at CITY’s Purchasing Division,
which are incorporated by reference and may be amended from time to time.
CONTRACTOR shall comply with waste reduction, reuse, recycling and disposal
requirements of CITY’s Zero Waste Program. Zero Waste best practices include
first minimizing and reducing waste; second, reusing waste and third, recycling or
composting waste. In particular, CONTRACTOR shall comply with the following
zero waste requirements:
• All printed materials provided by CONTRACTOR to CITY generated from a
personal computer and printer including but not limited to, proposals,
quotes, invoices, reports, and public education materials, shall be double-
sided and printed on a minimum of 30% or greater post-consumer content
paper, unless otherwise approved by CITY’s Project Manager. Any
submitted materials printed by a professional printing company shall be a
minimum of 30% or greater post-consumer material and printed with
vegetable based inks.
• Goods purchased by Contractor on behalf of CITY shall be purchased in
accordance with 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 Division’s
office.
• Reusable/returnable pallets shall be taken back by CONTRACTOR, at no
additional cost to CITY, for reuse or recycling. CONTRACTOR shall provide
documentation from the facility accepting the pallets to verify that pallets
are not being disposed.
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City of Palo Alto General Services Agreement 9 Rev. March 29, 2018
Y. AUTHORITY. The individual(s) executing this Agreement on behalf of the parties
represent and warrant that they have the legal capacity and authority to do so on
behalf of their respective legal entities.
Z. PREVAILING WAGES
This Project is not subject to prevailing wages. CONTRACTOR is not required to
pay prevailing wages in the performance and implementation of the Project in
accordance with SB 7, if the Agreement is not a public works contract, if
Agreement does not include a public works construction project of more than
$25,000, or the Agreement does not include a public works alteration, demolition,
repair, or maintenance (collectively, ‘improvement’) project of more than
$15,000.
OR
Contractor is required to pay general prevailing wages as defined in Subchapter
3, Title 8 of the California Code of Regulations and Section 16000 et seq. and
Section 1773.1 of the California Labor Code. Pursuant to the provisions of Section
1773 of the Labor Code of the State of California, the City Council has obtained
the general prevailing rate of per diem wages and the general rate for holiday and
overtime work in this locality for each craft, classification, or type of worker
needed to execute the Agreement for this Project from the Director of the
Department of Industrial Relations (“DIR”). Copies of these rates may be obtained
at the Purchasing Division’s office of the City of Palo Alto. Contractor shall provide
a copy of prevailing wage rates to any staff or subcontractor hired, and shall pay
the adopted prevailing wage rates as a minimum. Contractor shall comply with
the provisions of all sections, including, but not limited to, Sections 1775, 1776,
1777.5, 1782, 1810, and 1813, of the Labor Code pertaining to prevailing wages.
AA. DIR REGISTRATION. In regard to any public work construction, alteration,
demolition, repair or maintenance work, CITY will not accept a bid proposal from
or enter into this Agreement with CONTRACTOR without proof that
CONTRACTOR and its listed subcontractors are registered with the California
Department of Industrial Relations (“DIR”) to perform public work, subject to
limited exceptions. City requires CONTRACTOR and its listed subcontractors to
comply with the requirements of SB 854.
CITY provides notice to CONTRACTOR of the requirements of California Labor
Code section 1771.1(a), which reads:
“A contractor or subcontractor shall not be qualified to bid on, be listed in a bid
proposal, subject to the requirements of Section 4104 of the Public Contract
Code, or engage in the performance of any contract for public work, as defined
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in this chapter, unless currently registered and qualified to perform public work
pursuant to Section 1725.5. It is not a violation of this section for an
unregistered contractor to submit a bid that is authorized by Section 7029.1 of
the Business and Professions Code or Section 10164 or 20103.5 of the Public
Contract Code, provided the contractor is registered to perform public work
pursuant to Section 1725.5 at the time the Agreement is awarded.”
CITY gives notice to CONTRACTOR and its listed subcontractors that
CONTRACTOR is required to post all job site notices prescribed by law or
regulation and CONTRACTOR is subject to SB 854-compliance monitoring and
enforcement by DIR.
CITY requires CONTRACTOR and its listed subcontractors to comply with the
requirements of Labor Code section 1776, including:
Keep accurate payroll records, showing the name, address, social security
number, work classification, straight time and overtime hours worked each day
and week, and the actual per diem wages paid to each journeyman, apprentice,
worker, or other employee employed by, respectively, CONTRACTOR and its
listed subcontractors, in connection with the Project.
The payroll records shall be verified as true and correct and shall be certified and
made available for inspection at all reasonable hours at the principal office of
CONTRACTOR and its listed subcontractors, respectively.
At the request of CITY, acting by its project manager, CONTRACTOR and its listed
subcontractors shall make the certified payroll records available for inspection or
furnished upon request to the project manager within ten (10) days of receipt of
CITY’s request.
[For state- and federally-funded projects] CITY requests CONTRACTOR
and its listed subcontractors to submit the certified payroll records to the
project manager at the end of each week during the Project.
If the certified payroll records are not produced to the project manager within
the 10-day period, then CONTRACTOR and its listed subcontractors shall be
subject to a penalty of one hundred dollars ($100.00) per calendar day, or
portion thereof, for each worker, and CITY shall withhold the sum total of
penalties from the progress payment(s) then due and payable to CONTRACTOR.
Inform the project manager of the location of CONTRACTOR’s and its listed
subcontractors’ payroll records (street address, city and county) at the
commencement of the Project, and also provide notice to the project manager
within five (5) business days of any change of location of those payroll records.
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City of Palo Alto General Services Agreement 11 Rev. March 29, 2018
BB. CONTRACT TERMS. All unchecked boxes do not apply to this Agreement. In the
case of any conflict between the terms of this Agreement and the exhibits hereto
or CONTRACTOR’s proposal (if any), the Agreement shall control. In the case of
any conflict between the exhibits hereto and CONTRACTOR’s proposal, the
exhibits shall control.
DocuSign Envelope ID: CA0CB054-75B8-4247-B078-5BF50A9F4CAF
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CONTRACT NO. C24188120 SIGNATURE PAGE
IN WITNESS WHEREOF, the parties hereto have by their duly authorized
representatives executed this Agreement as of the date first above written.
CITY OF PALO ALTO
____________________________
City Manager
APPROVED AS TO FORM:
__________________________
City Attorney or designee
SUMMIT UNIFORMS, LLC
By:_____________________________
Name:__________________________
Title:___________________________
DocuSign Envelope ID: CA0CB054-75B8-4247-B078-5BF50A9F4CAF
General Manager
Paul Comaroto
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C24188120 -Summit
Uniforms LLC
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(rev. Feb 16, 2023)
EXHIBIT A
SCOPE OF SERVICES
CONTRACTOR shall provide new uniforms, accessories and alterations for the City of
Palo Alto’s Public Safety Personnel.
The City is responsible for outfitting Police, Fire, and Park Ranger personnel with
uniforms and related apparel and equipment. The price lists for each personnel group
are attached and staff anticipates minimal changes in these lists for the duration of the
agreement.
CONTRACTOR shall provide uniform needs including tailoring and equipment to
meet all requirements for police, fire, park rangers, community service officers,
animal services, and support services staff.
There are approximately 270 Public Safety employees who will be replacing
uniforms on an as-needed basis. These include but not limited to the following:
• Police: Sworn Officers, Community Service Officers, Animal Control Officers,
support staff
• Fire: Firefighters, Captains, Chiefs, EMTs, Paramedics, support staff
• City: Park Rangers
• Newly hired personnel will require a complete set of the uniform.
Authorization Form
Employees will come to the store to select products and/or to be fitted. Each
employee must bring an authorization form signed by an authorized person.
Vendor must not accept orders without this authorization form. No phone orders
are allowed unless they are placed by the authorized person. The City will supply
the selected vendor with list of authorized persons.
General Specifications
The CONTRACTOR shall:
1. Operate a full-time retail store within 25 miles of Palo Alto with the
following minimum requirements:
a. The store must be open a minimum of 5 days a week from 1000-1700
hours
b. Two or more full-time tailors on location
c. Two or more persons working at the store in a customer service capacity
d. A primary single point of contact knowledgeable and familiar with police
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Attachment A - Contract
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Item 6: Staff Report Pg. 17 Packet Pg. 176 of 428
(rev. Feb 16, 2023)
equipment and uniforms who is available during store hours for
questions and has the authority to make updates to the uniform
specifications on an as needed basis
e. One or more employees with a minimum of one-year experience fitting
police officers for ballistic vests
2. Provide a maximum alteration turn-around time on all orders of 5 business days
3. Have the ability to loan new products on a “demo” basis
4. Provide emergency (same day or next business day) alterations / outfitting for
unanticipated, exceptional, occasions (such as funerals) within reason
5. Maintain a regular inventory of all items outlined within the SCHEDULE OF FEES
and to have them available in a full range of standard, common sizes
6. Be able to supply appropriate uniforms for Law Enforcement and Fire
Academies held within Santa Clara County
7. Provide services and goods on an as needed basis
CONTRACTOR shall be able to provide one or more current service representative
names and contact details from each of the below listed company (for the purpose of
reference checks – limited to customer service questions only):
Purchase Authorization
CONTRACTOR shall provide uniform needs including tailoring and equipment to meet all
requirements for the above listed staff pursuant to a purchase authorization granted by
the department chief and/or designated staff member(s) for each department
(“authorized purchasing staff”). The City is responsible for maintaining an updated list of
authorized purchasing staff members and communicating that list to CONTRACTOR in a
timely manner at the beginning of the contract period and whenever changes are made
to the staff assignments.
CONTRACTOR may accept orders properly authorized by paper purchase order form,
email, phone, or face-to-face contact with the authorized purchasing staff.
CONTRACTOR is required to specify the cost for alterations as outlined within this the
SCHEDULE OF FEES and to specify whether the charges are included in the original item
price or if the charges are additional. Any pricing that is not submitted shall be assumed
to be included in the purchase price.
DocuSign Envelope ID: CA0CB054-75B8-4247-B078-5BF50A9F4CAF
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(rev. Feb 16, 2023)
Authorized purchasing staff may periodically discuss and accept changes to individual
items within the SCHEDULE OF FEES and any corresponding incremental pricing
updates under any of the following conditions:
• A manufacturer discontinues a product line, but offers an updated item OR the
affected department agrees to substitute a comparable item with similar
functionality from a different manufacturer
• A department updates its uniform specifications due to operational changes
(i.e. a department- wide switch in duty weapon necessitates new holsters and
magazine pouches)
• A department updates its uniform specifications in response to updates in
technology, government standards, or best practices (i.e. a switch to the most
current ballistic vests from a prior model under an older standard)
Contract pricing bid shall be applied to ANY City department, regardless of where it
falls within the schedule of fees (Exhibit C). The schedule of fees is simplified to avoid
some of the redundancy in cases where multiple departments utilize the same uniform
equipment, clothing, or accessories.
DocuSign Envelope ID: CA0CB054-75B8-4247-B078-5BF50A9F4CAF
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Attachment A - Contract
C24188120 -Summit
Uniforms LLC
Item 6: Staff Report Pg. 19 Packet Pg. 178 of 428
(rev. Feb 16, 2023)
EXHIBIT B
SCHEDULE OF PERFORMANCE
CONTRACTOR shall perform the Services on an as needed basis.
DocuSign Envelope ID: CA0CB054-75B8-4247-B078-5BF50A9F4CAF
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Item 6: Staff Report Pg. 20 Packet Pg. 179 of 428
(rev. Feb 16, 2023)
EXHIBIT C
SCHEDULE OF FEES
CITY shall pay CONTRACTOR according to the following fee schedule. The maximum
amount of compensation to be paid to Contractor, including both payment for
services and reimbursable expenses, shall not exceed One Hundred Forty-Four
Thousand dollars per year ($144,000/year) and Seven Hundred Twenty Thousand
dollars ($720,000) for all five years. Any services provided or hours worked for
which payment would result in a total exceeding the maximum amount of
compensation set forth herein shall be at no cost to City.
YEAR 1 POLICE DEPARTMENT UNIFORMS SCHEDULE OF FEES
Police uniform items are generally "LAPD Navy Blue" in color for sworn, light blue for CSO
and support, green/ tan for animal control
1 Wool Pants Fechheimer 32289 $119.00
2 Poly-Lycra pants Fechheimer 39489 $89.00
3 BDU pants Blauer 8831 $69.00
4 Training cargo pants (various
colors)
5.11 Stryke $89.00
5 SWAT TDU pants (SWAT
color)
5.11 $69.00
6 Bike shorts Blauer 8841-1 $99.00
7 CSO shorts 5.11 73285 $-
8 Rain Pants (navy blue or black) 5.11 48057 $119.00
9 Pants Belt (black) Boston Leather $39.00
10 LS wool shirt/ silver P's on
epaulette
Elbeco 437 $99.00
11 SS wool shirt/ silver P's on
epaulette
Elbeco 4237 $89.00
12 LS heavy wool shirt/ silver P's
on epaulette
on epaulette
DocuSign Envelope ID: CA0CB054-75B8-4247-B078-5BF50A9F4CAF
Item 6
Attachment A - Contract
C24188120 -Summit
Uniforms LLC
Item 6: Staff Report Pg. 21 Packet Pg. 180 of 428
(rev. Feb 16, 2023)
27 SS BDU shirt Blauer 8741 $69.00
28 LS ArmorSkin polo for external
vest wear
vest wear
SWAT TDU shirt (SWAT color)
(Animal Control)
$32.00
43 Traffic safety vest w/star patch Blauer 339P $59.00
44 Black Tie S. Broome $10.00
45 PAPD Star Tie Bar Hookfast $14.00
46 PAPD Star Tie Tac Hookfast $12.00
47 PD shoulder patches paid for
by department, but held at store
YEAR 1 DUTY GEAR/ EQUIPMENT (Police, CSO, Animal Control).
SCHEDULE OF FEES
Line Item Description Manufacture Model/St... Unit Cost
DocuSign Envelope ID: CA0CB054-75B8-4247-B078-5BF50A9F4CAF
Item 6
Attachment A - Contract
C24188120 -Summit
Uniforms LLC
Item 6: Staff Report Pg. 22 Packet Pg. 181 of 428
(rev. Feb 16, 2023)
16 OC spray pouch Bianchi 7907 $36.00
17 Universal radio holder Bianchi 7914S $59.00
18 Silent key holder Bianchi 7916 $29.00
19 Compact light holder (Strion-
size)
Bianchi 7926 $22.00
20 Flat glove pouch Bianchi 7928 $29.00
21 Glove pouch Bianchi 7915 $29.00
22 Baton holder Bianchi 7904 $69.00
YEAR 1 POLICE MOTOR OFFICERS SCHEDULE OF FEES
Line Item Description Manufacturer Model/St... Unit Cost
1 Boots All American $549.00
2 Breeches 5.11 $199.00
3 Helmet Shoei $549.00
YEAR 1 FIRE DEPARTMENT UNIFORM SCHEDULE OF FEES
Line Item Description Manufacturer Model/St... Unit Cost
1 16 oz. wool pants Flying Cross SFFDTRS01 $119.00
2 EMS pants Propper $69.00
3 TDU pants (navy blue) 5.11 74003-724 $69.00
4 Pants belt Boston Leather (see above) $36.00
5 SS wool shirt Elbeco 4237 $89.00
6 LS wool shirt Elbeco 437 $99.00
7 SS white shirt Elbeco 867 $44.00
8 LS white shirt Elbeco 877 $54.00
9 SS light blue shirt Elbeco 868 $44.00
10 EMS Jacket 5.11 $-
11 Duty Jacket (navy blue) Blauer 6120 $179.00
12 Double-breasted jacket Fechheimer X917B90- $369.00
13 Blue Bell Cap - plain bill None $109.00
14 Blue Bell Cap - plain bill None $109.00
15 Tie Samuel Boome $10.00
16 Tie Bar Vanguard $8.00
17 Maltese cross Blackinton $14.00
18 Collar insignia - button Blackinton $24.00
19 Collar insignia - cut out silver Blackinton $34.00
20 Collar insignia - cut out gold Blackinton $34.00
21 Badge holder Strong $26.00
22 Shoulder patches Schweitez $14.00
23 Sleeve stripe None $50.00
24 Boots Danner 18102 $349.00
25 Boots Danner 18051 $299.00
26 Boots Thorogood 804-6037 $169.00
27 Additional boots may be
specified as new styles arrive
- Authority outlined in Exhibit
DocuSign Envelope ID: CA0CB054-75B8-4247-B078-5BF50A9F4CAF
Item 6
Attachment A - Contract
C24188120 -Summit
Uniforms LLC
Item 6: Staff Report Pg. 23 Packet Pg. 182 of 428
(rev. Feb 16, 2023)
YEAR 1 PARK RANGERS UNIFORM/ DUTY GEAR SCHEDULE OF FEES
Line Item Description Manufacturer Model/St... Unit Cost
1 Class A pants (wool/ poly)
forest green
2 Class B pants (cotton/ poly)
forest green
Ben Davis
3 Class B pants OD green Blauer 8810
4 Pants Belt Boston Leather
5 SS RANGER shirt (tropical
weave silver/ tan) $79.00
6 LS RANGER shirt (tropical
weave silver/ tan) $89.00
7 SS TECHNICIAN shirt
(khaki cotton / poly)
Dickies $36.00
8 LS TECHNICIAN shirt
(khaki cotton / poly)
Dickies $39.00
9 Duty Jacket OD green Blauer 9820-60 $369.00
10 Straw campaign hat (tan w/
grommets)
Stratton $129.00
11 Coveralls Dickies $59.00
12 Leather glove holder Dickies $16.00
13 Leather key silencer Dickies $25.00
14 Leather flashlight holder Dickies $22.00
15 Leather multi-tool holder Dickies $-
16 Leather M K3 size OC holder Dickies $34.00
YEAR 1 CLOTHING ACCESSORIES (ALL DEPARTMENTS) SCHEDULE OF FEES
Line Item Description Manufacturer Model /S ... Unit Cost
1 Cloth nametag None $12.00
2 Metal nametag for formal shirt None $15.00
3 Metal nametag for IKE/ formal
jacket
None $15.00
4 Zippers for shirts None $20.00
5 Chevrons None $9.00
6 Hash marks None $2.00
7 Take in shirt sides None $25.00
8 Shorten shirt sleeves None $25.00
9 OVERSIZE CHARGES for
larger than 2XL
None $-
Year 2
DocuSign Envelope ID: CA0CB054-75B8-4247-B078-5BF50A9F4CAF
Item 6
Attachment A - Contract
C24188120 -Summit
Uniforms LLC
Item 6: Staff Report Pg. 24 Packet Pg. 183 of 428
(rev. Feb 16, 2023)
YEAR 2 POLICE DEPARTMENT UNIFORMS SCHEDULE OF FEES
Police uniform items are generally "LAPD Navy Blue" in color for sworn, light blue for CSO
1 Wool Pants Fechheimer 32289 $120.19
2 Poly-Lycra pants Fechheimer 39489 $89.89
3 BDU pants Blauer 8831 $69.69
4 Training cargo pants (various
colors)
5.11 Stryke $89.89
5 SWAT TDU pants (SWAT
color)
5.11 $69.69
6 Bike shorts Blauer 8841-1 $99.99
7 CSO shorts 5.11 73285 $-
8 Rain Pants (navy blue or black) 5.11 48057 $120.19
9 Pants Belt (black) Boston Leather $39.39
10 LS wool shirt/ silver P's on
epaulette
Elbeco 437 $99.99
11 SS wool shirt/ silver P's on
epaulette
Elbeco 4237 $89.89
12 LS heavy wool shirt/ silver P's
on epaulette
on epaulette
vest wear
vest wear
SWAT TDU shirt (SWAT color)
DocuSign Envelope ID: CA0CB054-75B8-4247-B078-5BF50A9F4CAF
Item 6
Attachment A - Contract
C24188120 -Summit
Uniforms LLC
Item 6: Staff Report Pg. 25 Packet Pg. 184 of 428
(rev. Feb 16, 2023)
37 Fleece jacket w/ nametag
(Animal Control)
$32.32
43 Traffic safety vest w/star patch Blauer 339P $59.59
44 Black Tie S. Broome $10.10
45 PAPD Star Tie Bar Hookfast $14.14
46 PAPD Star Tie Tac Hookfast $12.12
47 PD shoulder patches paid for
by department, but held at store
YEAR 2 DUTY GEAR/ EQUIPMENT (Police, CSO, Animal Control).
SCHEDULE OF FEES
Line Item Description Manufacture Model/St... Unit Cost
YEAR 2 POLICE MOTOR OFFICERS SCHEDULE OF FEES
Line Item Description Manufacturer Model/St... Unit Cost
1
DocuSign Envelope ID: CA0CB054-75B8-4247-B078-5BF50A9F4CAF
Item 6
Attachment A - Contract
C24188120 -Summit
Uniforms LLC
Item 6: Staff Report Pg. 26 Packet Pg. 185 of 428
(rev. Feb 16, 2023)
2 Breeches 5.11 $200.99
3 Helmet Shoei $554.49
YEAR 2 FIRE DEPARTMENT UNIFORM SCHEDULE OF FEES
Line Item Description Manufacturer Model/St... Unit Cost
1 16 oz. wool pants Flying Cross SFFDTRS01 $120.19
2 EMS pants Propper $69.69
3 TDU pants (navy blue) 5.11 74003-724 $69.69
4 Pants belt Boston Leather (see above) $39.39
5 SS wool shirt Elbeco 4237 $89.89
6 LS wool shirt Elbeco 437 $99.99
7 SS white shirt Elbeco 867 $44.44
8 LS white shirt Elbeco 877 $54.54
9 SS light blue shirt Elbeco 868 $44.44
10 EMS Jacket 5.11 $-
11 Duty Jacket (navy blue) Blauer 6120 $180.79
12 Double-breasted jacket Fechheimer X917B90-01 $372.69
13 Blue Bell Cap - plain bill None $110.09
14 Blue Bell Cap - plain bill None $110.09
15 Tie Samuel Boome $10.10
16 Tie Bar Vanguard $8.08
17 Maltese cross Blackinton $14.14
18 Collar insignia - button Blackinton $24.24
19 Collar insignia - cut out silver Blackinton $34.34
20 Collar insignia - cut out gold Blackinton $34.34
21 Badge holder Strong $26.26
22 Shoulder patches Schweitez $14.14
23 Sleeve stripe None $50.50
24 Boots Danner 18102 $352.49
25 Boots Danner 18051 $301.99
26 Boots Thorogood 804-6037 $170.69
27 Additional boots may be
specified as new styles arrive
- Authority outlined in Exhibit
YEAR 2 PARK RANGERS UNIFORM/ DUTY GEAR SCHEDULE OF FEES
Line Item Description Manufacturer Model/St... Unit Cost
forest green
2 Class B pants (cotton/ poly)
forest green
3 Class B pants OD green Blauer 8810
4 Pants Belt Boston Leather
5 SS RANGER shirt (tropical
weave silver/ tan) $79.79
DocuSign Envelope ID: CA0CB054-75B8-4247-B078-5BF50A9F4CAF
Item 6
Attachment A - Contract
C24188120 -Summit
Uniforms LLC
Item 6: Staff Report Pg. 27 Packet Pg. 186 of 428
(rev. Feb 16, 2023)
6 LS RANGER shirt (tropical
weave silver/ tan) $89.89
7 SS TECHNICIAN shirt
(khaki cotton / poly)
Dickies $36.36
8 LS TECHNICIAN shirt
(khaki cotton / poly)
Dickies $39.39
9 Duty Jacket OD green Blauer 9820-60 $372.69
10 Straw campaign hat (tan w/
grommets)
Stratton $130.29
11 Coveralls Dickies $59.59
12 Leather glove holder Dickies $16.16
13 Leather key silencer Dickies $25.25
14 Leather flashlight holder Dickies $22.22
15 Leather multi-tool holder Dickies $-
16 Leather M K3 size OC holder Dickies $34.34
YEAR 2 CLOTHING ACCESSORIES (ALL DEPARTMENTS) SCHEDULE OF FEES
Line Item Description Manufacturer Model /S ... Unit Cost
1 Cloth nametag None $12.12
2 Metal nametag for formal shirt None $15.15
3 Metal nametag for IKE/ formal
jacket
None $15.15
4 Zippers for shirts None $20.20
5 Chevrons None $9.09
6 Hash marks None $2.02
7 Take in shirt sides None $25.25
8 Shorten shirt sleeves None $25.25
9 OVERSIZE CHARGES for
larger than 2XL
None $-
Year 3
YEAR 3 POLICE DEPARTMENT UNIFORMS SCHEDULE OF FEES
Police uniform items are generally "LAPD Navy Blue" in color for sworn, light blue for CSO
and support, green/ tan for animal control
Line Item Description Manufacturer Model/St... Unit Cost
1 Wool Pants Fechheimer 32289 $121.39
2 Poly-Lycra pants Fechheimer 39489 $90.79
3 BDU pants Blauer 8831 $70.39
4 Training cargo pants (various
colors)
5.11 Stryke $90.79
5 SWAT TDU pants (SWAT
color)
5.11 $70.39
6 Bike shorts Blauer 8841-1 $100.99
7 CSO shorts 5.11 73285 $-
DocuSign Envelope ID: CA0CB054-75B8-4247-B078-5BF50A9F4CAF
Item 6
Attachment A - Contract
C24188120 -Summit
Uniforms LLC
Item 6: Staff Report Pg. 28 Packet Pg. 187 of 428
(rev. Feb 16, 2023)
8 Rain Pants (navy blue or black) 5.11 48057 $121.39
9 Pants Belt (black) Boston Leather $39.78
10 LS wool shirt/ silver P's on
epaulette
Elbeco 437 $100.99
11 SS wool shirt/ silver P's on
epaulette
Elbeco 4237 $90.79
12 LS heavy wool shirt/ silver P's
on epaulette
on epaulette
vest wear
vest wear
SWAT TDU shirt (SWAT color)
w/embroidery
(Animal Control)
$32.64
43 Traffic safety vest w/star patch Blauer 339P $60.19
44 Black Tie S. Broome $10.20
45 PAPD Star Tie Bar Hookfast $14.28
46 PAPD Star Tie Tac Hookfast $12.24
DocuSign Envelope ID: CA0CB054-75B8-4247-B078-5BF50A9F4CAF
Item 6
Attachment A - Contract
C24188120 -Summit
Uniforms LLC
Item 6: Staff Report Pg. 29 Packet Pg. 188 of 428
(rev. Feb 16, 2023)
47 PD shoulder patches paid for
by department, but held at store
YEAR 3 DUTY GEAR/ EQUIPMENT (Police, CSO, Animal Control).
SCHEDULE OF FEES
Line Item Description Manufacture Model/St... Unit Cost
YEAR 3 POLICE MOTOR OFFICERS SCHEDULE OF FEES
Line Item Description Manufacturer Model/St... Unit Cost
1
YEAR 3 FIRE DEPARTMENT UNIFORM SCHEDULE OF FEES
Line Item Description Manufacturer Model/St... Unit Cost
DocuSign Envelope ID: CA0CB054-75B8-4247-B078-5BF50A9F4CAF
Item 6
Attachment A - Contract
C24188120 -Summit
Uniforms LLC
Item 6: Staff Report Pg. 30 Packet Pg. 189 of 428
(rev. Feb 16, 2023)
7 SS white shirt Elbeco 867 $44.88
8 LS white shirt Elbeco 877 $55.09
9 SS light blue shirt Elbeco 868 $44.88
10 EMS Jacket 5.11 $-
11 Duty Jacket (navy blue) Blauer 6120 $182.60
12 Double-breasted jacket Fechheimer X917B90-01 $376.42
13 Blue Bell Cap - plain bill None $111.19
14 Blue Bell Cap - plain bill None $111.19
15 Tie Samuel Boome $10.20
16 Tie Bar Vanguard $8.16
17 Maltese cross Blackinton $14.28
18 Collar insignia - button Blackinton $24.48
19 Collar insignia - cut out silver Blackinton $34.68
20 Collar insignia - cut out gold Blackinton $34.68
21 Badge holder Strong $26.52
22 Shoulder patches Schweitez $14.28
23 Sleeve stripe None $51.01
24 Boots Danner 18102 $356.01
25 Boots Danner 18051 $305.01
26 Boots Thorogood 804-6037 $172.40
27 Additional boots may be
specified as new styles arrive -
Authority outlined in Exhibit A
YEAR 3 PARK RANGERS UNIFORM/ DUTY GEAR SCHEDULE OF FEES
Line Item Description Manufacturer Model/St... Unit Cost
2 Class B pants (cotton/ poly)
forest green
3 Class B pants OD green Blauer 8810
4 Pants Belt Boston Leather
5 SS RANGER shirt (tropical
weave silver/ tan) $80.59
6 LS RANGER shirt (tropical
weave silver/ tan) $90.79
7 SS TECHNICIAN shirt
(khaki cotton / poly)
Dickies $36.72
8 LS TECHNICIAN shirt
(khaki cotton / poly)
Dickies $39.78
9 Duty Jacket OD green Blauer 9820-60 $376.42
10 Straw campaign hat (tan w/
grommets)
Stratton $131.59
11 Coveralls Dickies $60.19
12 Leather glove holder Dickies $16.32
13 Leather key silencer Dickies $25.50
14 Leather flashlight holder Dickies $22.44
15 Leather multi-tool holder Dickies $-
DocuSign Envelope ID: CA0CB054-75B8-4247-B078-5BF50A9F4CAF
Item 6
Attachment A - Contract
C24188120 -Summit
Uniforms LLC
Item 6: Staff Report Pg. 31 Packet Pg. 190 of 428
(rev. Feb 16, 2023)
16 Leather M K3 size OC holder Dickies $34.68
YEAR 3 CLOTHING ACCESSORIES (ALL DEPARTMENTS) SCHEDULE OF
FEES
Line Item Description Manufacturer Model /S ... Unit Cost
1 Cloth nametag None $12.24
2 Metal nametag for formal shirt None $15.30
3 Metal nametag for IKE/ formal
jacket
None $15.30
4 Zippers for shirts None $20.40
5 Chevrons None $9.18
6 Hash marks None $2.04
7 Take in shirt sides None $25.50
8 Shorten shirt sleeves None $25.50
9 OVERSIZE CHARGES for
larger than 2XL
None $-
Year 4
YEAR 4 POLICE DEPARTMENT UNIFORMS SCHEDULE OF FEES
Police uniform items are generally "LAPD Navy Blue" in color for sworn, light blue for CSO
and support, green/ tan for animal control
Line Item Description Manufacturer Model/St... Unit Cost
1 Wool Pants Fechheimer 32289 $122.61
2 Poly-Lycra pants Fechheimer 39489 $91.70
3 BDU pants Blauer 8831 $71.09
4 Training cargo pants (various
colors)
5.11 Stryke $91.70
5 SWAT TDU pants (SWAT
color)
5.11 $71.09
6 Bike shorts Blauer 8841-1 $102.00
7 CSO shorts 5.11 73285 $-
8 Rain Pants (navy blue or black) 5.11 48057 $122.61
9 Pants Belt (black) Boston Leather $40.18
10 LS wool shirt/ silver P's on
epaulette
Elbeco 437 $102.00
11 SS wool shirt/ silver P's on
epaulette
Elbeco 4237 $91.70
12 LS heavy wool shirt/ silver P's
on epaulette
on epaulette
DocuSign Envelope ID: CA0CB054-75B8-4247-B078-5BF50A9F4CAF
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Item 6: Staff Report Pg. 32 Packet Pg. 191 of 428
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18 LS light blue WW shirt Flying Cross 45W6625 $91.70
19 SS light blue WW shirt Flying Cross 95R6625 $81.39
20 LS women's light blue WW shirt Flying Cross 102W6625 $91.70
21 SS women's light blue WW shirt Flying Cross 152R6625 $81.39
22 LS light blue poplin shirt Elbeco 878 $55.64
23 SS light blue poplin shirt Elbeco 877 $45.33
24 LS tan WW shirt (Animal
Control)
Flying Cross 19W6604 $91.70
25 2S tan WW shirt (Animal
Control)
Flying Cross 69R6604 $81.39
26 LS BDU shirt Blauer 8731 $76.24
27 SS BDU shirt Blauer 8741 $71.09
28 LS ArmorSkin polo for external
vest wear
vest wear
SWAT TDU shirt (SWAT color)
w/embroidery
(Animal Control)
star/patch $32.97
43 Traffic safety vest w/star patch Blauer 339P $60.79
44 Black Tie S. Broome $10.30
45 PAPD Star Tie Bar Hookfast $14.42
46 PAPD Star Tie Tac Hookfast $12.36
47 PD shoulder patches paid for
by department, but held at store
YEAR 4 DUTY GEAR/ EQUIPMENT (Police, CSO, Animal Control).
SCHEDULE OF FEES
Line Item Description Manufacture Model/St... Unit Cost
DocuSign Envelope ID: CA0CB054-75B8-4247-B078-5BF50A9F4CAF
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(rev. Feb 16, 2023)
5 Rechargeable flashlight Streamlight Strion DS HL
(700
$-
6 Expandable baton (sworn only) ASP 26" $184.42
7 Duty weapon holster (sworn
only)
Safariland 6360 $174.12
8 Side-break baton scabbard ASP 26" $71.09
9 Duty Belt w/ tri-release buckle Bianchi 7980 $71.09
10 Velcro pants belt Bianchi 7205 $29.88
11 Cuff case single Bianchi 7900 $37.09
12 Cuff case double Bianchi 7917 $45.33
13 Open cuff case Bianchi 7934 $50.48
14 Double magazine pouch Bianchi 7902 $50.48
15 Keepers (4-pack) Bianchi 7906 $17.52
16 OC spray pouch Bianchi 7907 $37.09
17 Universal radio holder Bianchi 7914S $60.79
18 Silent key holder Bianchi 7916 $29.88
19 Compact light holder (Strion-
size)
Bianchi 7926 $22.67
20 Flat glove pouch Bianchi 7928 $29.88
21 Glove pouch Bianchi 7915 $29.88
22 Baton holder Bianchi 7904 $71.09
YEAR 4 POLICE MOTOR OFFICERS SCHEDULE OF FEES
Line Item Description Manufacturer Model/St... Unit Cost
1 Boots All American $565.64
2 Breeches 5.11 $205.03
3 Helmet Shoei $565.64
YEAR 4 FIRE DEPARTMENT UNIFORM SCHEDULE OF FEES
Line Item Description Manufacturer Model/St... Unit Cost
1 16 oz. wool pants Flying Cross SFFDTRS01 $122.61
2 EMS pants Propper $71.09
3 TDU pants (navy blue) 5.11 74003-724 $71.09
4 Pants belt Boston Leather (see above) $40.18
5 SS wool shirt Elbeco 4237 $91.70
6 LS wool shirt Elbeco 437 $102.00
7 SS white shirt Elbeco 867 $45.33
8 LS white shirt Elbeco 877 $55.64
9 SS light blue shirt Elbeco 868 $45.33
10 EMS Jacket 5.11 $-
11 Duty Jacket (navy blue) Blauer 6120 $182.42
12 Double-breasted jacket Fechheimer X917B90-01 $380.18
13 Blue Bell Cap - plain bill None $112.30
14 Blue Bell Cap - plain bill None $112.30
15 Tie Samuel Boome $10.30
16 Tie Bar Vanguard $8.24
17 Maltese cross Blackinton $14.42
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Item 6: Staff Report Pg. 34 Packet Pg. 193 of 428
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18 Collar insignia - button Blackinton $24.73
19 Collar insignia - cut out silver Blackinton $35.03
20 Collar insignia - cut out gold Blackinton $35.03
21 Badge holder Strong $26.79
22 Shoulder patches Schweitez $14.42
23 Sleeve stripe None $51.52
24 Boots Danner 18102 $359.58
25 Boots Danner 18051 $308.06
26 Boots Thorogood 804-6037 $174.12
27 Additional boots may be
specified as new styles arrive -
Authority outlined in Exhibit A
YEAR 4 PARK RANGERS UNIFORM/ DUTY GEAR SCHEDULE OF FEES
Line Item Description Manufacturer Model/St... Unit Cost
2 Class B pants (cotton/ poly)
forest green
3 Class B pants OD green Blauer 8810
4 Pants Belt Boston Leather
5 SS RANGER shirt (tropical
weave silver/ tan) $81.39
6 LS RANGER shirt (tropical
weave silver/ tan) $91.70
7 SS TECHNICIAN shirt
(khaki cotton / poly)
Dickies $37.09
8 LS TECHNICIAN shirt
(khaki cotton / poly)
Dickies $40.18
9 Duty Jacket OD green Blauer 9820-60 $380.18
10 Straw campaign hat (tan w/
grommets) $132.91
11 Coveralls Dickies $60.79
12 Leather glove holder Dickies $16.48
13 Leather key silencer Dickies $25.76
14 Leather flashlight holder Dickies $22.67
15 Leather multi-tool holder Dickies $-
16 Leather MK3 size OC holder Dickies $35.03
YEAR 4 CLOTHING ACCESSORIES (ALL DEPARTMENTS) SCHEDULE OF
FEES
Line Item Description Manufacturer Model /S ... Unit Cost
1 Cloth nametag None $12.36
2 Metal nametag for formal shirt None $15.45
3 Metal nametag for IKE/ formal
jacket
None $15.45
4 Zippers for shirts None $20.61
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5 Chevrons None $9.27
6 Hash marks None $2.06
7 Take in shirt sides None $25.76
8 Shorten shirt sleeves None $25.76
9 OVERSIZE CHARGES for
larger than 2XL
None $-
Year 5
YEAR 5 POLICE DEPARTMENT UNIFORMS SCHEDULE OF FEES
Line Item Description Manufacturer Model/St... Unit Cost
1 Wool Pants Fechheimer 32289 $123.83
2 Poly-Lycra pants Fechheimer 39489 $92.61
3 BDU pants Blauer 8831 $71.80
4 Training cargo pants (various
colors)
5.11 Stryke $92.61
5 SWAT TDU pants (SWAT
color)
5.11 $71.80
6 Bike shorts Blauer 8841-1 $103.02
7 CSO shorts 5.11 73285 $-
8 Rain Pants (navy blue or black) 5.11 48057 $123.83
9 Pants Belt (black) Boston Leather $40.58
10 LS wool shirt/ silver P's on
epaulette
Elbeco 437 $103.02
11 SS wool shirt/ silver P's on
epaulette
Elbeco 4237 $92.61
12 LS heavy wool shirt/ silver P's
on epaulette
on epaulette
vest wear
DocuSign Envelope ID: CA0CB054-75B8-4247-B078-5BF50A9F4CAF
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29 SS ArmorSkin polo for external
vest wear
SWAT TDU shirt (SWAT color)
w/embroidery
(Animal Control)
star/patch $33.30
43 Traffic safety vest w/star patch Blauer 339P $61.40
44 Black Tie S. Broome $10.41
45 PAPD Star Tie Bar Hookfast $14.57
46 PAPD Star Tie Tac Hookfast $12.49
47 PD shoulder patches paid for
by department, but held at store
YEAR 5 DUTY GEAR/ EQUIPMENT (Police, CSO, Animal Control).
SCHEDULE OF FEES
Line Item Description Manufacture Model/St... Unit Cost
DocuSign Envelope ID: CA0CB054-75B8-4247-B078-5BF50A9F4CAF
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Uniforms LLC
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15 Keepers (4-pack) Bianchi 7906 $17.69
16 OC spray pouch Bianchi 7907 $37.46
17 Universal radio holder Bianchi 7914S $61.40
18 Silent key holder Bianchi 7916 $30.18
19 Compact light holder (Strion-
size)
Bianchi 7926 $22.89
20 Flat glove pouch Bianchi 7928 $30.18
21 Glove pouch Bianchi 7915 $30.18
22 Baton holder Bianchi 7904 $71.80
YEAR 5 POLICE MOTOR OFFICERS SCHEDULE OF FEES
Line Item Description Manufacturer Model/St... Unit Cost
1 Boots All American $571.29
2 Breeches 5.11 $207.08
3 Helmet Shoei $571.29
YEAR 5 FIRE DEPARTMENT UNIFORM SCHEDULE OF FEES
Line Item Description Manufacturer Model/St... Unit Cost
1 16 oz. wool pants Flying Cross SFFDTRS01 $123.83
2 EMS pants Propper $71.80
3 TDU pants (navy blue) 5.11 74003-724 $71.80
4 Pants belt Boston Leather (see above) $40.58
5 SS wool shirt Elbeco 4237 $92.61
6 LS wool shirt Elbeco 437 $103.02
7 SS white shirt Elbeco 867 $45.79
8 LS white shirt Elbeco 877 $56.19
9 SS light blue shirt Elbeco 868 $45.79
10 EMS Jacket 5.11 $-
11 Duty Jacket (navy blue) Blauer 6120 $186.27
12 Double-breasted jacket Fechheimer X917B90-01 $383.98
13 Blue Bell Cap - plain bill None $113.43
14 Blue Bell Cap - plain bill None $113.43
15 Tie Samuel Boome $10.41
16 Tie Bar Vanguard $8.32
17 Maltese cross Blackinton $14.57
18 Collar insignia - button Blackinton $24.97
19 Collar insignia - cut out silver Blackinton $35.38
20 Collar insignia - cut out gold Blackinton $35.38
21 Badge holder Strong $27.06
22 Shoulder patches Schweitez $14.57
23 Sleeve stripe None $52.03
24 Boots Danner 18102 $363.17
25 Boots Danner 18051 $311.14
26 Boots Thorogood 804-6037 $175.86
27 Additional boots may be
specified as new styles arrive -
Authority outlined in Exhibit A
DocuSign Envelope ID: CA0CB054-75B8-4247-B078-5BF50A9F4CAF
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YEAR 5 PARK RANGERS UNIFORM/ DUTY GEAR SCHEDULE OF FEES
Line Item Description Manufacturer Model/St... Unit Cost
1 Class A pants (wool/ poly)
forest green
Flying Cross
2 Class B pants (cotton/ poly)
forest green
3 Class B pants OD green Blauer 8810
4 Pants Belt Boston Leather
5 SS RANGER shirt (tropical
weave silver/ tan) $82.21
6 LS RANGER shirt (tropical
weave silver/ tan) $92.61
7 SS TECHNICIAN shirt
(khaki cotton / poly)
Dickies $37.46
8 LS TECHNICIAN shirt
(khaki cotton / poly)
Dickies $40.58
9 Duty Jacket OD green Blauer 9820-60 $383.98
10 Straw campaign hat (tan w/
grommets)
Stratton $134.24
11 Coveralls Dickies $61.40
12 Leather glove holder Dickies $16.65
13 Leather key silencer Dickies $26.02
14 Leather flashlight holder Dickies $22.89
15 Leather multi-tool holder Dickies $-
16 Leather M K3 size OC holder Dickies $35.38
YEAR 5 CLOTHING ACCESSORIES (ALL DEPARTMENTS) SCHEDULE OF FEES
Line Item Description Manufacturer Model /S ... Unit Cost
1 Cloth nametag None $12.49
2 Metal nametag for formal shirt None $15.61
3 Metal nametag for IKE/ formal
jacket
None $15.61
4 Zippers for shirts None $20.81
5 Chevrons None $9.37
6 Hash marks None $2.08
7 Take in shirt sides None $26.02
8 Shorten shirt sleeves None $26.02
9 OVERSIZE CHARGES for
larger than 2XL
None $-
DocuSign Envelope ID: CA0CB054-75B8-4247-B078-5BF50A9F4CAF
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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
AGGREGATE
YES
YES EMPLOYER’S LIABILITY STATUTORY
YES GENERAL LIABILITY, INCLUDING
PERSONAL INJURY, BROAD FORM
PROPERTY DAMAGE BLANKET
CONTRACTUAL, AND FIRE LEGAL
LIABILITY
PROPERTY DAMAGE
BODILY INJURY & PROPERTY
DAMAGE COMBINED.
$1,000,000
$1,000,000
$1,000,000
$1,000,000
YES AUTOMOBILE LIABILITY,
INCLUDING ALL OWNED, HIRED,
NON-OWNED
- EACH PERSON
- EACH OCCURRENCE
PROPERTY DAMAGE
BODILY INJURY AND PROPERTY
$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
INCLUDING, ERRORS AND
OMISSIONS, MALPRACTICE (WHEN
APPLICABLE), AND NEGLIGENT
YES : 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
I
COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS
I. INSURANCE COVERAGE MUST INCLUDE:
A. A PROVISION FOR A WRITTEN THIRTY DAY ADVANCE NOTICE TO CITY OF CHANGE
IN COVERAGE OR OF COVERAGE CANCELLATION; AND
B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE
FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY.
C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL.
II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED
COVERAGE.
III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO
“ADDITIONAL INSUREDS”
DocuSign Envelope ID: CA0CB054-75B8-4247-B078-5BF50A9F4CAF
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A. PRIMARY COVERAGE
WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED,
INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR
CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE
ADDITIONAL INSUREDS.
B. CROSS LIABILITY
THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE
POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED
AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS,
SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY.
C. NOTICE OF CANCELLATION
1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY
REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE ISSUING
COMPANY SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN
NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.
2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-
PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT
LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF
CANCELLATION.
NOTICES SHALL BE MAILED TO:
PURCHASING AND
CONTRACT ADMINISTRATION
CITY OF PALO ALTO
P.O. BOX 10250
PALO ALTO, CA 94303
DocuSign Envelope ID: CA0CB054-75B8-4247-B078-5BF50A9F4CAF
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: February 12, 2024
Report #:2310-2142
TITLE
Approval of a General Services Contract Number C24189570 with Downtown Streets Team, Inc.
in an Amount Not to Exceed $528,409 for Cleaning Services in the University Avenue and
California Avenue Business Districts for a Period of Three Years; CEQA status – Not a Project
RECOMMENDATION
Staff recommends that Council approve and authorize the City Manager or their designee to
execute Contract No. C24189570 with Downtown Streets Team, Inc., to provide cleaning services
in the University Avenue and California Avenue Business Districts for a term of three years and a
total not to exceed amount of $528,409, including $372,447 for basic services and $155,962 for
additional services.
EXECUTIVE SUMMARY
Staff recommends approval of a new three-year contract (Attachment A) with Downtown Streets
Team, Inc. (DST), to continue to provide services within the University Avenue Business District,
and to expand their work to the Car-Free Streets portions of California Avenue and Ramona
Street. The expansion of DST services to California Avenue and Ramona Street will help reduce
overflowing garbage receptacles, improve reporting of safety hazards and graffiti, and ensure
that the newly purchased furniture and games are kept clean and maintained.
BACKGROUND
The Public Works Department’s Public Services Division is responsible for maintaining safe and
clean University Avenue and California Avenue Business Districts. In 2010, downtown
stakeholders, which included the Palo Alto Business Improvement District (BID) and Palo Alto
Downtown Professional and Business Association (PADPBA), proposed a combination of
enhanced services that would raise the standards of cleanliness in the University Avenue Business
District. The enhanced services included reducing trash from overflowing garbage receptacles,
reporting graffiti and vandalism, removing litter in the alleyways and in the five parking structures
(S & L, R, J, Q and Civic Center), and reporting suspicious vehicles and/or activities.
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As a result, BID and PADPBA founded the Downtown Streets Team (DST). DST was developed to
provide cleaning services to the downtown community, but also to reduce panhandling and
provide re-entry skills to the unhoused. Services provided by the DST team members include
reducing trash from full garbage containers, removing litter from sidewalks, alleyways, and
garages, reporting suspicious vehicles or activities to the proper authorities, and providing peer
to peer outreach. The litter control provided by DST also assists the City in avoiding storm water
compliance issues.
1.
Due to concerns about DST’s governance and internal practices, Council pulled the item from the
consent calendar and on December 7, 2020, approved the agreement for one year rather than
three years. On December 13, 2021, the contract was amended for the additional two years2.
This contract expired on January 11, 2024.
ANALYSIS
1 City Council, November 30, 2020; Agenda Item #4, SR #11487;
https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/reports/city-manager-reports-
cmrs/year-archive/2020-2/id-11487.pdf?t=58685.19
2 Downtown Streets Amendment 1 Contract C21179861;
https://www.cityofpaloalto.org/files/assets/public/v/1/public-works/public-services/id-13557-c21179861-
downtown-streets-inc._amendment-1_partially-executed.11.30.2021_1.pdf
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(HSRAP) grants from the City related to homeless outreach and workforce development services.
Considering the many ways in which the City and DST partner, staff is reviewing all contracts and
work citywide with Downtown Streets Team. Staff anticipates returning to Council with a
citywide approach and performance measures by the end of June, with the goal of increasing
efficiencies in managing the scope of work and relationship with DST.
FISCAL/RESOURCE IMPACT
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Table1: Estimated Contract Costs
Year
2020 Contract
Amount
2024 Contract
Amount Difference
Year 1 (FY2024) Task 1: University Avenue Parking
Permit Fund - $107,748 $117,122.$9,374
Year 1 (FY2024) Task 2: Car-Free Street Cleaning
Services N/A $50,470.$50,470
Year 1 Total $107,748 $167,592 $59,844
Year 2 (FY2025) Task 1: University Avenue Parking
Permit Fund
(Subject to annual appropriation of funds)
$107,748 $124,149.$16,401
Year 2 (FY2025) Task 2: Car-Free Street Cleaning
Services (Subject to annual appropriation of funds)N/A $51,948.$51,948
Year 2 Total $107,748 $176,097 $68,349
Year 3 (FY2026) Task 1: University Avenue Parking
Permit Fund (Subject to annual appropriation of
funds)
$107,748 $131,176.$23,428
Year 3 (FY2026) Task 2: Car-Free Street Cleaning
Services (Subject to annual appropriation of funds)N/A $53,544 $53,544
Year 3 Total $107,748 $184,720 $76,972
Total for three years $323,244 $528,409.$205,165
STAKEHOLDER ENGAGEMENT
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ENVIRONMENTAL REVIEW
ATTACHMENTS
APPROVED BY:
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City of Palo Alto General Services Agreement 1 Rev. March 29, 2018
CITY OF PALO ALTO CONTRACT NO. C24189570
GENERAL SERVICES AGREEMENT
THIS AGREEMENT made and entered into on the 11th day of December 2023, by and
between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”),
and DOWNTOWN STREETS, INC., a California public benefit non-profit corporation,
located at 1671 The Alameda, Suite 301, San Jose, CA 95126, Telephone Number: 650-
305-1174 (“CONTRACTOR”). In consideration of their mutual covenants, the parties
hereto agree as follows:
1.SERVICES. CONTRACTOR shall provide or furnish the services (the “Services”)
described in the Scope of Services, attached at Exhibit A.
2.EXHIBITS. The following exhibits are attached to and made a part of this
Agreement:
“A” - Scope of Services
“B” - Schedule of Performance
“C” – Schedule of Fees
“D” - Insurance Requirements
CONTRACT IS NOT COMPLETE UNLESS ALL INDICATED EXHIBITS ARE ATTACHED.
3. TERM.
The term of this Agreement is from January 12, 2024 to January 11, 2027 inclusive,
subject to the provisions of Sections R and W of the General Terms and Conditions.
4.SCHEDULE OF PERFORMANCE. CONTRACTOR shall complete the Services within
the term of this Agreement in a reasonably prompt and timely manner based upon
the circumstances and direction communicated to CONTRACTOR, and if
applicable, in accordance with the schedule set forth in the Schedule of
Performance, attached at Exhibit B. Time is of the essence in this Agreement.
5.COMPENSATION FOR ORIGINAL TERM. CITY shall pay and CONTRACTOR agrees
to accept as not-to-exceed compensation for the full performance of the Services
and reimbursable expenses, if any:
The total maximum lump sum compensation of dollars ($); OR
The sum of dollars ($ ) per hour, not to exceed a total
maximum compensation amount of dollars ($ ); OR
DocuSign Envelope ID: 4544AE09-B448-430E-98E7-A4C7FC164ADC
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Attachment A -
Downtown Streets Team,
Inc Contract
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City of Palo Alto General Services Agreement 2 Rev. March 29, 2018
A sum calculated in accordance with the fee schedule set forth at Exhibit
C, not to exceed a total maximum compensation amount of Five Hundred
Twenty-Eight Thousand Four Hundred Nine dollars and Nine Cents
($528,409.09).
CONTRACTOR agrees that it can perform the Services for an amount not to exceed
the total maximum compensation set forth above. Any hours worked or services
performed by CONTRACTOR for which payment would result in a total exceeding
the maximum amount of compensation set forth above for performance of the
Services shall be at no cost to CITY.
CITY has set aside the sum of dollars ($ ) for Additional
Services. CONTRACTOR shall provide Additional Services only by
advanced, written authorization from the City Manager or designee.
CONTRACTOR, at the CITY’s request, shall submit a detailed written
proposal including a description of the scope of services, schedule, level of
effort, and CONTRACTOR’s proposed maximum compensation, including
reimbursable expense, for such services. Compensation shall be based on
the hourly rates set forth above or in Exhibit C (whichever is applicable), or
if such rates are not applicable, a negotiated lump sum. CITY shall not
authorize and CONTRACTOR shall not perform any Additional Services for
which payment would exceed the amount set forth above for Additional
Services. Payment for Additional Services is subject to all requirements and
restrictions in this Agreement.
6. COMPENSATION DURING ADDITIONAL TERMS.
CONTRACTOR’S compensation rates for each additional term shall be the
same as the original term; OR
CONTRACTOR’s compensation rates shall be adjusted effective on the
commencement of each Additional Term. The lump sum compensation
amount, hourly rates, or fees, whichever is applicable as set forth in section
5 above, shall be adjusted by a percentage equal to the change in the
Consumer Price Index for Urban Wage Earners and Clerical Workers for the
San Francisco-Oakland- San Jose area, published by the United States
Department of Labor Statistics (CPI) which is published most immediately
preceding the commencement of the applicable Additional Term, which
shall be compared with the CPI published most immediately preceding the
commencement date of the then expiring term. Notwithstanding the
foregoing, in no event shall CONTRACTOR’s compensation rates be
increased by an amount exceeding five percent of the rates effective
DocuSign Envelope ID: 4544AE09-B448-430E-98E7-A4C7FC164ADC
Item 7
Attachment A -
Downtown Streets Team,
Inc Contract
Item 7: Staff Report Pg. 7 Packet Pg. 207 of 428
City of Palo Alto General Services Agreement 3 Rev. March 29, 2018
during the immediately preceding term. Any adjustment to
CONTRACTOR’s compensation rates shall be reflected in a written
amendment to this Agreement.
7. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS”. For purposes of this
Section 7, a “9204 Public Works Project” means the erection, construction,
alteration, repair, or improvement of any public structure, building, road, or other
public improvement of any kind. Public Contract Code Section 9204 mandates
certain claims procedures for Public Works Projects.
This project is a 9204 Public Works Project and is required to comply with
the claims procedures set forth in Appendix __, attached hereto and
incorporated herein.
OR
This project is not a 9204 Public Works Project.
8. INVOICING. Send all invoices to CITY, Attention: Project Manager. The Project
Manager is: Kaela Noakes, Dept.: Public Works, Telephone: 650-496-5945, Email:
Kaela.Noakes@cityofpaloalto.org. Invoices shall be submitted in arrears for
Services performed. Invoices shall not be submitted more frequently than
monthly. Invoices shall provide a detailed statement of Services performed during
the invoice period and are subject to verification by CITY. CITY shall pay the
undisputed amount of invoices within 30 days of receipt.
GENERAL TERMS AND CONDITIONS
A. ACCEPTANCE. CONTRACTOR accepts and agrees to all terms and conditions of
this Agreement. This Agreement includes and is limited to the terms and
conditions set forth in sections 1 through 8 above, these general terms and
conditions and the attached exhibits.
B. QUALIFICATIONS. CONTRACTOR represents and warrants that it has the expertise
and qualifications to complete the services described in Section 1 of this
Agreement, entitled “SERVICES,” and that every individual charged with the
performance of the services under this Agreement has sufficient skill and
experience and is duly licensed or certified, to the extent such licensing or
certification is required by law, to perform the Services. CITY expressly relies on
CONTRACTOR’s representations regarding its skills, knowledge, and certifications.
CONTRACTOR shall perform all work in accordance with generally accepted
business practices and performance standards of the industry, including all
federal, state, and local operation and safety regulations.
DocuSign Envelope ID: 4544AE09-B448-430E-98E7-A4C7FC164ADC
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Attachment A -
Downtown Streets Team,
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City of Palo Alto General Services Agreement 4 Rev. March 29, 2018
C. INDEPENDENT CONTRACTOR. It is understood and agreed that in the
performance of this Agreement, CONTRACTOR and any person employed by
CONTRACTOR shall at all times be considered an independent CONTRACTOR and
not an agent or employee of CITY. CONTRACTOR shall be responsible for
employing or engaging all persons necessary to complete the work required under
this Agreement.
D. SUBCONTRACTORS. CONTRACTOR may not use subcontractors to perform any
Services under this Agreement unless CONTRACTOR obtains prior written consent
of CITY. CONTRACTOR shall be solely responsible for directing the work of
approved subcontractors and for any compensation due to subcontractors.
E. TAXES AND CHARGES. CONTRACTOR shall be responsible for payment of all taxes,
fees, contributions or charges applicable to the conduct of CONTRACTOR’s
business.
F. COMPLIANCE WITH LAWS. CONTRACTOR shall in the performance of the Services
comply with all applicable federal, state and local laws, ordinances, regulations,
and orders.
G. PALO ALTO MINIMUM WAGE ORDINANCE. CONTRACTOR shall comply with all
requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum
Wage), as it may be amended from time to time. In particular, for any employee
otherwise entitled to the State minimum wage, who performs at least two (2)
hours of work in a calendar week within the geographic boundaries of the City,
CONTRACTOR shall pay such employees no less than the minimum wage set forth
in Palo Alto Municipal Code section 4.62.030 for each hour worked within the
geographic boundaries of the City of Palo Alto. In addition, CONTRACTOR shall
post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with
Palo Alto Municipal Code section 4.62.060.
H. DAMAGE TO PUBLIC OR PRIVATE PROPERTY. CONTRACTOR shall, at its sole
expense, repair in kind, or as the City Manager or designee shall direct, any
damage to public or private property that occurs in connection with
CONTRACTOR’s performance of the Services. CITY may decline to approve and
may withhold payment in whole or in part to such extent as may be necessary to
protect CITY from loss because of defective work not remedied or other damage
to the CITY occurring in connection with CONTRACTOR’s performance of the
Services. CITY shall submit written documentation in support of such withholding
upon CONTRACTOR’s request. When the grounds described above are removed,
payment shall be made for amounts withheld because of them.
DocuSign Envelope ID: 4544AE09-B448-430E-98E7-A4C7FC164ADC
Item 7
Attachment A -
Downtown Streets Team,
Inc Contract
Item 7: Staff Report Pg. 9 Packet Pg. 209 of 428
City of Palo Alto General Services Agreement 5 Rev. March 29, 2018
I. WARRANTIES. CONTRACTOR expressly warrants that all services provided under
this Agreement shall be performed in a professional and workmanlike manner in
accordance with generally accepted business practices and performance
standards of the industry and the requirements of this Agreement. CONTRACTOR
expressly warrants that all materials, goods and equipment provided by
CONTRACTOR under this Agreement shall be fit for the particular purpose
intended, shall be free from defects, and shall conform to the requirements of this
Agreement. CONTRACTOR agrees to promptly replace or correct any material or
service not in compliance with these warranties, including incomplete, inaccurate,
or defective material or service, at no further cost to CITY. The warranties set
forth in this section shall be in effect for a period of one year from completion of
the Services and shall survive the completion of the Services or termination of this
Agreement.
J. MONITORING OF SERVICES. CITY may monitor the Services performed under this
Agreement to determine whether CONTRACTOR’s work is completed in a
satisfactory manner and complies with the provisions of this Agreement.
K. CITY’S PROPERTY. Any reports, information, data or other material (including
copyright interests) developed, collected, assembled, prepared, or caused to be
prepared under this Agreement will become the property of CITY without
restriction or limitation upon their use and will not be made available to any
individual or organization by CONTRACTOR or its subcontractors, if any, without
the prior written approval of the City Manager.
L. AUDITS. CONTRACTOR agrees to permit CITY and its authorized representatives
to audit, at any reasonable time during the term of this Agreement and for three
(3) years from the date of final payment, CONTRACTOR’s records pertaining to
matters covered by this Agreement. CONTRACTOR agrees to maintain accurate
books and records in accordance with generally accepted accounting principles for
at least three (3) following the terms of this Agreement.
M. 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.
N. INSURANCE. CONTRACTOR, at its sole cost, shall purchase and maintain in full
force during the term of this Agreement, the insurance coverage described at
Exhibit D. Insurance must be provided by companies with a Best’s Key Rating of A-
:VII or higher and which are otherwise acceptable to CITY’s Risk Manager. The Risk
Manager must approve deductibles and self-insured retentions. In addition, all
policies, endorsements, certificates and/or binders are subject to approval by the
Risk Manager as to form and content. CONTRACTOR shall obtain a policy
DocuSign Envelope ID: 4544AE09-B448-430E-98E7-A4C7FC164ADC
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City of Palo Alto General Services Agreement 6 Rev. March 29, 2018
endorsement naming the City of Palo Alto as an additional insured under any
general liability or automobile policy. CONTRACTOR shall obtain an endorsement
stating that the insurance is primary coverage and will not be canceled or
materially reduced in coverage or limits until after providing 30 days prior written
notice of the cancellation or modification to the Risk Manager. CONTRACTOR shall
provide certificates of such policies or other evidence of coverage satisfactory to
the Risk Manager, together with the required endorsements and evidence of
payment of premiums, to CITY concurrently with the execution of this Agreement
and shall throughout the term of this Agreement provide current certificates
evidencing the required insurance coverages and endorsements to the Risk
Manager. CONTRACTOR shall include all subcontractors as insured under its
policies or shall obtain and provide to CITY separate certificates and endorsements
for each subcontractor that meet all the requirements of this section. The
procuring of such required policies of insurance shall not operate to limit
CONTRACTOR’s liability or obligation to indemnify CITY under this Agreement.
O. HOLD HARMLESS. To the fullest extent permitted by law and without limitation
by the provisions of section N relating to insurance, CONTRACTOR shall indemnify,
defend and hold harmless CITY, its Council members, officers, employees and
agents from and against any and all demands, claims, injuries, losses, or liabilities
of any nature, including death or injury to any person, property damage or any
other loss and including without limitation all damages, penalties, fines and
judgments, associated investigation and administrative expenses and defense
costs, including, but not limited to reasonable attorney’s fees, courts costs and
costs of alternative dispute resolution), arising out of, or resulting in any way from
or in connection with the performance of this Agreement. CONTRACTOR’s
obligations under this Section apply regardless of whether or not a liability is
caused or contributed to by any negligent (passive or active) act or omission of
CITY, except that CONTRACTOR shall not be obligated to indemnify for liability
arising from the sole negligence or willful misconduct of CITY. The acceptance of
the Services by CITY shall not operate as a waiver of the right of indemnification.
The provisions of this Section survive the completion of the Services or
termination of this Agreement.
P. NON-DISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510,
CONTRACTOR certifies that in the performance of this Agreement, it shall not
discriminate in the employment of any person because of the race, skin color,
gender, age, religion, disability, national origin, ancestry, sexual orientation,
housing status, marital status, familial status, weight or height of such person.
CONTRACTOR acknowledges that it has read and understands the provisions of
Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination
Requirements and the penalties for violation thereof, and agrees to meet all
requirements of Section 2.30.510 pertaining to nondiscrimination in employment.
DocuSign Envelope ID: 4544AE09-B448-430E-98E7-A4C7FC164ADC
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Attachment A -
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City of Palo Alto General Services Agreement 7 Rev. March 29, 2018
Q. WORKERS' COMPENSATION. CONTRACTOR, by executing this Agreement,
certifies that it is aware of the provisions of the Labor Code of the State of Califor-
nia which require every employer to be insured against liability for workers'
compensation or to undertake self-insurance in accordance with the provisions of
that Code, and certifies that it will comply with such provisions, as applicable,
before commencing and during the performance of the Services.
R. TERMINATION. The City Manager may terminate this Agreement without cause
by giving ten (10) days’ prior written notice thereof to CONTRACTOR. If
CONTRACTOR fails to perform any of its material obligations under this
Agreement, in addition to all other remedies provided by law, the City Manager
may terminate this Agreement immediately upon written notice of termination.
Upon receipt of such notice of termination, CONTRACTOR shall immediately
discontinue performance. CITY shall pay CONTRACTOR for services satisfactorily
performed up to the effective date of termination. If the termination is for cause,
CITY may deduct from such payment the amount of actual damage, if any,
sustained by CITY due to CONTRACTOR’s failure to perform its material obligations
under this Agreement. Upon termination, CONTRACTOR shall immediately deliver
to the City Manager any and all copies of studies, sketches, drawings,
computations, and other material or products, whether or not completed,
prepared by CONTRACTOR or given to CONTRACTOR, in connection with this
Agreement. Such materials shall become the property of CITY.
S. ASSIGNMENTS/CHANGES. This Agreement binds the parties and their successors
and assigns to all covenants of this Agreement. This Agreement shall not be
assigned or transferred without the prior written consent of CITY. No
amendments, changes or variations of any kind are authorized without the written
consent of CITY.
T. CONFLICT OF INTEREST. In accepting this Agreement, CONTRACTOR covenants
that it presently has no interest, and will not acquire any interest, direct or
indirect, financial or otherwise, which would conflict in any manner or degree with
the performance of this Agreement. CONTRACTOR further covenants that, in the
performance of this Agreement, it will not employ any person having such an
interest. CONTRACTOR certifies that no CITY officer, employee, or authorized
representative has any financial interest in the business of CONTRACTOR and that
no person associated with CONTRACTOR has any interest, direct or indirect, which
could conflict with the faithful performance of this Agreement. CONTRACTOR
agrees to advise CITY if any conflict arises.
U. GOVERNING LAW. This Agreement shall be governed and interpreted by the laws
of the State of California.
DocuSign Envelope ID: 4544AE09-B448-430E-98E7-A4C7FC164ADC
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Attachment A -
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City of Palo Alto General Services Agreement 8 Rev. March 29, 2018
V. ENTIRE AGREEMENT. This Agreement, including all exhibits, represents the entire
agreement between the parties with respect to the services that may be the
subject of this Agreement. Any variance in the exhibits does not affect the validity
of the Agreement and the Agreement itself controls over any conflicting provisions
in the exhibits. This Agreement supersedes all prior agreements, representations,
statements, negotiations and undertakings whether oral or written.
W. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the
Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement
will terminate without any penalty (a) at the end of any fiscal year in the event
that funds are not appropriated for the following fiscal year, or (b) at any time
within a fiscal year in the event that funds are only appropriated for a portion of
the fiscal year and funds for this 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.
X. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE
REQUIREMENTS. CONTRACTOR shall comply with CITY’s Environmentally
Preferred Purchasing policies which are available at CITY’s Purchasing Division,
which are incorporated by reference and may be amended from time to time.
CONTRACTOR shall comply with waste reduction, reuse, recycling and disposal
requirements of CITY’s Zero Waste Program. Zero Waste best practices include
first minimizing and reducing waste; second, reusing waste and third, recycling or
composting waste. In particular, CONTRACTOR shall comply with the following
zero waste requirements:
• All printed materials provided by CONTRACTOR to CITY generated from a
personal computer and printer including but not limited to, proposals,
quotes, invoices, reports, and public education materials, shall be double-
sided and printed on a minimum of 30% or greater post-consumer content
paper, unless otherwise approved by CITY’s Project Manager. Any
submitted materials printed by a professional printing company shall be a
minimum of 30% or greater post-consumer material and printed with
vegetable based inks.
• Goods purchased by Contractor on behalf of CITY shall be purchased in
accordance with 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 Division’s
office.
• Reusable/returnable pallets shall be taken back by CONTRCATOR, at no
additional cost to CITY, for reuse or recycling. CONTRACTOR shall provide
documentation from the facility accepting the pallets to verify that pallets
are not being disposed.
DocuSign Envelope ID: 4544AE09-B448-430E-98E7-A4C7FC164ADC
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Attachment A -
Downtown Streets Team,
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City of Palo Alto General Services Agreement 9 Rev. March 29, 2018
Y. AUTHORITY. The individual(s) executing this Agreement on behalf of the parties
represent and warrant that they have the legal capacity and authority to do so on
behalf of their respective legal entities.
Z. PREVAILING WAGES
This Project is not subject to prevailing wages. CONTRACTOR is not required to
pay prevailing wages in the performance and implementation of the Project in
accordance with SB 7, if the Agreement is not a public works contract, if
Agreement does not include a public works construction project of more than
$25,000, or the Agreement does not include a public works alteration, demolition,
repair, or maintenance (collectively, ‘improvement’) project of more than
$15,000.
AA. DIR REGISTRATION. In regard to any public work construction, alteration,
demolition, repair or maintenance work, CITY will not accept a bid proposal from
or enter into this Agreement with CONTRACTOR without proof that CONTRACTOR
and its listed subcontractors are registered with the California Department of
Industrial Relations (“DIR”) to perform public work, subject to limited exceptions.
City requires CONTRACTOR and its listed subcontractors to comply with the
requirements of SB 854.
CITY provides notice to CONTRACTOR of the requirements of California Labor
Code section 1771.1(a), which reads:
“A contractor or subcontractor shall not be qualified to bid on, be listed in a bid
proposal, subject to the requirements of Section 4104 of the Public Contract Code,
or engage in the performance of any contract for public work, as defined in this
chapter, unless currently registered and qualified to perform public work pursuant
to Section 1725.5. It is not a violation of this section for an unregistered contractor
to submit a bid that is authorized by Section 7029.1 of the Business and
Professions Code or Section 10164 or 20103.5 of the Public Contract Code,
provided the contractor is registered to perform public work pursuant to Section
1725.5 at the time the Agreement is awarded.”
CITY gives notice to CONTRACTOR and its listed subcontractors that CONTRACTOR
is required to post all job site notices prescribed by law or regulation and
CONTRACTOR is subject to SB 854-compliance monitoring and enforcement by
DIR.
CITY requires CONTRACTOR and its listed subcontractors to comply with the
requirements of Labor Code section 1776, including:
DocuSign Envelope ID: 4544AE09-B448-430E-98E7-A4C7FC164ADC
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City of Palo Alto General Services Agreement 10 Rev. March 29, 2018
Keep accurate payroll records, showing the name, address, social security
number, work classification, straight time and overtime hours worked each day
and week, and the actual per diem wages paid to each journeyman, apprentice,
worker, or other employee employed by, respectively, CONTRACTOR and its listed
subcontractors, in connection with the Project.
The payroll records shall be verified as true and correct and shall be certified and
made available for inspection at all reasonable hours at the principal office of
CONTRACTOR and its listed subcontractors, respectively.
At the request of CITY, acting by its project manager, CONTRACTOR and its listed
subcontractors shall make the certified payroll records available for inspection or
furnished upon request to the project manager within ten (10) days of receipt of
CITY’s request.
[For state- and federally-funded projects] CITY requests CONTRACTOR and
its listed subcontractors to submit the certified payroll records to the
project manager at the end of each week during the Project.
If the certified payroll records are not produced to the project manager within the
10-day period, then CONTRACTOR and its listed subcontractors shall be subject to
a penalty of one hundred dollars ($100.00) per calendar day, or portion thereof,
for each worker, and CITY shall withhold the sum total of penalties from the
progress payment(s) then due and payable to CONTRACTOR.
Inform the project manager of the location of CONTRACTOR’s and its listed
subcontractors’ payroll records (street address, city and county) at the
commencement of the Project, and also provide notice to the project manager
within five (5) business days of any change of location of those payroll records.
BB. CONTRACT TERMS. All unchecked boxes do not apply to this Agreement. In the
case of any conflict between the terms of this Agreement and the exhibits hereto
or CONTRACTOR’s proposal (if any), the Agreement shall control. In the case of
any conflict between the exhibits hereto and CONTRACTOR’s proposal, the
exhibits shall control.
DocuSign Envelope ID: 4544AE09-B448-430E-98E7-A4C7FC164ADC
Item 7
Attachment A -
Downtown Streets Team,
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Item 7: Staff Report Pg. 15 Packet Pg. 215 of 428
City of Palo Alto General Services Agreement 11 Rev. March 29, 2018
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 DOWNTOWN STREETS, INC.
__________________________ By___________________________
City Manager or Designee
Name ________________________
Title__________________________
__________________________ Telephone_____________________
Purchasing Manager or Designee
Approved as to form: By____________________________
Name_________________________
___________________________
City Attorney or Designee Title__________________________
Telephone_____________________
DocuSign Envelope ID: 4544AE09-B448-430E-98E7-A4C7FC164ADC
Interim CEO
Jim Rettew, CEO
(408) 899-7350
Marina Peterson
408-899-7350
Chief Financial Officer
Item 7
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Downtown Streets Team,
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City of Palo Alto General Services Agreement 12 Rev. March 29, 2018
EXHIBIT A
SCOPE OF SERVICES
1. SERVICES
Task 1 – Street Cleaning Services
CONTRACTOR shall perform Street Cleaning Services, which includes cleaning of the City’s
five parking garages (S & L, R, J, Q and Civic Center), sidewalks, and alleyways in the
Downtown Palo Alto area. These services shall be performed according to the attached
schedule (Attachment B) and shall be performed at a minimum by a two-person crew. The
level of service provided shall include, but not be limited to, picking up litter, reducing trash
from overflowing trash receptacles along University Avenue, reporting safety hazards such as
raised sidewalks and lights that are out, and reporting cases of vandalism and graffiti.
CONTRACTOR shall be responsible for providing all training and equipment required to
perform the tasks as specified in the contract, including the appropriate training and Personal
Protective Equipment (PPE) required for the collection of syringes (sharps). The CITY will
provide sharp waste containers and dispose of those containers once filled. It is the
responsibility of the CONTRACTOR to inform the Project Manager when sharp waste
containers are full and need to be replaced and disposed. CONTRACTOR shall also, through
the use of their employees, encourage other unhoused individuals to explore other options, and
to explain all of the services that are available to unhoused individuals. CONTRACTOR shall
send teams daily to Palo Alto City Hall to conduct outreach, pick up trash, and ensure that no
individuals are violating Palo Alto City Policy 4-07/MGR – Conduct in City Facilities.
The Downtown Streets Team (DST) Project Manager shall also attend quarterly meetings with
the City’s Project Manager when deemed necessary. CONTRACTOR shall provide a monthly
report to Project Manager that reports data on the following:
• Number of homeless individuals found in each of the garages.
• Total number of interactions with homeless individuals.
• Number of homeless individuals who report that they do not want to engage in
any services offered.
• And other pertinent information that conveys the barriers that unhoused
individuals face in accessing, following up with and obtaining needed services.
• Include a monthly success story regarding their team members.
When requested, the DST Project Manager shall also attend monthly meetings with the Palo
Alto Downtown Business and Professional Association (PADBPA) to act as a liaison between
the business owners who have a vested interest in the services being provided, City staff who
manage the contract, and the Downtown Streets Team who runs the program. The DST Project
Manager shall make a brief presentation at these monthly PADBPA meetings to relay what
efforts have been undertaken since the last meeting.
DocuSign Envelope ID: 4544AE09-B448-430E-98E7-A4C7FC164ADC
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City of Palo Alto General Services Agreement 13 Rev. March 29, 2018
Task 2 (Additive Alternate Bid/Additional Services) – Car-Free Street Cleaning Services
(Ramona Street and California Ave)
CONTRACTOR shall perform Street Cleaning Services in the Car-Free Streets portions of
Ramona St (from Hamilton Ave to University Ave) in downtown, and California Ave (from
El Camino Real to Birch St), plus a small portion of Ash Street (from Sherman Ave to
California Ave) within the California Ave Business District. The level of services provided
shall include, but not limited to, picking up litter; removing leaves and debris from areas not
accessible to street sweepers (such as near gutters or tight corners); rearranging and resetting
City-owned outdoor furniture (such as small tables, foldable chairs, faux-carpeting, and game
play areas); and ensuring furniture is upright and clean (include cleaning and/or wiping down
tables and chairs); reducing trash from overflowing trash receptacles along the Car-free streets;
reporting safety hazards such as raised sidewalks and lights that are out; and reporting cases of
vandalism and graffiti.
CONTRACTOR shall be responsible for providing all training and equipment required to
perform the tasks as specified in the contract, including the appropriate training and Personal
Protective Equipment (PPE) required for the collection of syringes (sharps). The CITY will
provide sharp waste containers and dispose of those containers once filled. It is the
responsibility of the CONTRACTOR to inform the Project Manager when sharp waste
containers are full and need to be replaced and disposed.
The CITY reserves the right and at its sole discretion, to reject, initiate, or cancel this additive
alternate service at any time. The CITY will provide CONTRACTOR a minimum of two weeks
advance notice prior to initiating or canceling these services.
DocuSign Envelope ID: 4544AE09-B448-430E-98E7-A4C7FC164ADC
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Downtown Streets Team,
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City of Palo Alto General Services Agreement 14 Rev. March 29, 2018
EXHIBIT B
SCHEDULE OF PERFORMANCE
CONTRACTOR shall not perform services in cases of inclement weather (as determined by
City staff and the Downtown Streets Team Project Manager), or during observed City
Holidays. The schedule and tasks can be modified during the term of the contract based on
operational needs through a written mutual agreement between the CITY and the
CONTRACTOR.
Task 1 – Street Cleaning Services Schedule:
DAY TIME ACTIVITIES
Monday 8-9 AM
9 -10 AM
10- 10:15 AM
10:15--11 AM
11-12 AM
12 PM
12-1 PM
1-2:30 PM
2:30-2:45 PM
2:45-4 PM
4 PM
Alleyways (Downtown North and South) Shift change
box
Break
University Ave
Downtown South/City Hall
Shift changes at box
Downtown North
Garage cleaning and outreach
Break
Garage cleaning and outreach
Dismissal at box
9 -10 AM
10- 10:15 AM
10:15--11 AM
11-12 AM
12 PM
12-1 PM
1-2:30 PM
2:30-2:45 PM
2:45-4 PM
4 PM
Alleyways (Downtown North and South) Shift change
box
Break
University Ave
Downtown South/City Hall
Shift changes at box
Downtown North
Garage cleaning and outreach
Break
Garage cleaning and outreach
Dismissal at box
9 -10 AM
10- 10:15 AM
10:15--11 AM
11-12 AM
12 PM
12-1 PM
1-2:30 PM
2:30-2:45 PM
2:45-4 PM
4 PM
Alleyways (Downtown North and South) Shift change
box
Break
University Ave
Downtown South/City Hall
Shift changes at box
Downtown North
Garage cleaning and outreach
Break
Garage cleaning and outreach
DocuSign Envelope ID: 4544AE09-B448-430E-98E7-A4C7FC164ADC
Item 7
Attachment A -
Downtown Streets Team,
Inc Contract
Item 7: Staff Report Pg. 19 Packet Pg. 219 of 428
City of Palo Alto General Services Agreement 15 Rev. March 29, 2018
Thursday 8-8:30 AM
8:30-9 AM
9-10 AM
Downtown South/City Hall and Alleyways
Downtown North and University Ave Alleyways
9 -10 AM
10- 10:15 AM
10:15--11 AM
11-12 AM
12 PM
12-1 PM
1-2:30 PM
2:30-2:45 PM
2:45-4 PM
4 PM
Alleyways (Downtown North and South) Shift change
Break
University Ave
Downtown South/City Hall
Shift changes at box
Downtown North
Garage cleaning and outreach
Break
Garage cleaning and outreach
Dismissal at box
10-10:30 AM
10:30-11:30 AM
11:30-11:45 AM
11:45-1 PM
1 PM
Downtown South/City Hall/University Ave
Downtown North
Break
Garage cleaning and outreach
Dismissal at box
10-10:30 AM
10:30-11:30 AM
11:30-11:45 AM
11:45-1 PM
Downtown South/City Hall/University Ave
Downtown North
Break
Garage cleaning and outreach
Task 2 (Additive Alternate Bid/Additional Services) – Car-Free Street Cleaning
Services (Ramona St and California Ave) Schedule:
8-10AM Car-free street portion of California Ave (which includes
Ash St) and Ramona St (Ramona St. could be done as part
of Task 1 schedule).
Wednesday
Ash St) and Ramona St (Ramona St. could be done as part
of Task 1 schedule).
Friday
Ash St) and Ramona St (Ramona St. could be done as part
of Task 1 schedule).
DocuSign Envelope ID: 4544AE09-B448-430E-98E7-A4C7FC164ADC
Item 7
Attachment A -
Downtown Streets Team,
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City of Palo Alto General Services Agreement 16 Rev. March 29, 2018
EXHIBIT C
SCHEDULE OF FEES
CONTRACTOR shall perform the tasks as described and budgeted below. 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 the Services does not exceed the
amounts set forth in Sections 5 and 6 of the Agreement. Any services provided or hours worked
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.
A. Base Bid: Provide all labor, equipment, materials, transportation, applicable taxes,
profit, insurance, bonds and other overhead to perform the Work in accordance with
the Project Plans and Technical Specifications, herein:
CONTRACTOR shall provide detailed invoices that identify the tasks that were completed.
For example, see below:
• Quantity of trash that have been removed.
• Quantity of syringes (sharps) that have been removed.
• Dates and locations that have been serviced (if above schedule is altered).
• Number of individuals that are were on site each week.
BASE BID:
Year Description Price per month Price per year
1 Task 1
(Street Cleaning Services)
(Street Cleaning Services)
(Street Cleaning Services)
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City of Palo Alto General Services Agreement 17 Rev. March 29, 2018
B. Additive Alternate Bid 1 (Additional Services): Provide all labor, equipment,
materials, transportation, applicable taxes, profit, insurance, bonds and other overhead
to perform the Work in accordance with the Project Plans and Technical Specifications,
herein:
The CITY reserves the right and at its sole discretion, to reject, initiate, or cancel this additive
alternate service at any time. The CITY will provide CONTRACTOR a minimum of two weeks
advance notice prior to initiating or canceling these services.
ADDITIVE ALTERNATE BID 1:
Year Description Price per month Price per year
1 Task 2
(Car-Free Street Cleaning Services
(Ramona St and California Ave)
(Car-Free Street Cleaning Services
(Ramona St and California Ave))
(Car-Free Street Cleaning Services
(Ramona St and California Ave))
Grand Total Base Bid and Additive Alternate Bid 1: $528,409.09
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City of Palo Alto General Services Agreement 18 Rev. March 29, 2018
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
AGGREGATE
YES
YES EMPLOYER’S LIABILITY STATUTORY
YES GENERAL LIABILITY, INCLUDING
PERSONAL INJURY, BROAD FORM
PROPERTY DAMAGE BLANKET
CONTRACTUAL, AND FIRE LEGAL
LIABILITY
PROPERTY DAMAGE
BODILY INJURY & PROPERTY
DAMAGE COMBINED.
$1,000,000
$1,000,000
$1,000,000
$1,000,000
YES AUTOMOBILE LIABILITY,
INCLUDING ALL OWNED, HIRED,
NON-OWNED
- EACH PERSON
- EACH OCCURRENCE
PROPERTY DAMAGE
BODILY INJURY AND PROPERTY
$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
INCLUDING, ERRORS AND
OMISSIONS, MALPRACTICE (WHEN
APPLICABLE), AND NEGLIGENT
YES : 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
COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS
I. INSURANCE COVERAGE MUST INCLUDE:
A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE
FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY.
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
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City of Palo Alto General Services Agreement 19 Rev. March 29, 2018
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
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: IT Department
Meeting Date: February 12, 2024
Report #:2309-2072
TITLE
Approval of Contract Amendments with AgreeYa Solutions, INC., Elegant Enterprise-Wide
Solutions, INC., Forsys, INC., Object Technology Solutions, INC., Techlink Systems, INC., ZION
Cloud Solutions, INC., and Inspyr Solutions, LLC., for IT On-Call Professional Services, to Increase
the Combined Annual Not-To-Exceed Amount to $1,250,000 and a Contract Not-To-Exceed total
of $3,940,000; CEQA Status - Not a Project.
RECOMMENDATION
Staff recommends that the Council approve and authorize the City Manager or designee to
execute ’Amendment One’ of seven IT General On-Call Professional Services contracts to
increase the annual combined not-to-exceed amount from $480,000 annually to $1,250,000
annually across all seven contracts for years 4-5. This brings the new contract not-to-exceed
combined amount of all seven contracts to $3,940,000 over a five-year period, to provide
department-specific projects and/or solutions. The seven contracts are with:
1) AgreeYa Solutions, INC., C20174582B;
2) Elegant Enterprise-Wide Solutions, INC., C20174582C;
3) Forsys INC., C20174582D;
4) Object Technology Solutions, INC., C20174582E;
5) Techlink Systems, INC., C20174582F;
6) Zion Cloud Solutions, INC., C20174583G; and
7) Inspyr Solutions, LLC, C20174582H (formerly Genuent Global, LLC)
BACKGROUND
In July 2019, staff issued a Request for Proposal (RFP) to identify several qualified firms to provide
IT on-call professional services on an as-needed basis to help with day-to-day enhancements,
projects, backfills, break fixes, and modernization.
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The City Council previously approved these seven contracts for five-years on June 22, 2020,
CMR 11360 1.
•SharePoint Sites for City departments
ANALYSIS
FISCAL/RESOURCE IMPACT
1CMR 11360; https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-
reports-cmrs/year-archive/2020/id-11360.pdf
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New combined Years 1-5 contract Not-To-Exceed Total: $3,940,000.
STAKEHOLDER ENGAGEMENT
ENVIRONMENTAL REVIEW
ATTACHMENTS
APPROVED BY:
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AMENDMENT NO. 1 TO CONTRACT NO. C20174582B
BETWEEN THE CITY OF PALO ALTO AND
AGREEYA SOLUTIONS, INC.
This Amendment No. 1 (this “Amendment”) to Contract No. C20174582B (the “Contract” as
defined below) is entered into as of September 25, 2023, by and between the CITY OF PALO ALTO,
a California chartered municipal corporation (“CITY”), and AGREEYA SOLUTIONS, INC., a California
Corporation, located at 605 Coolidge Drive, Folsom, CA 95630 (“CONSULTANTS”). CITY and
CONSULTANT are referred to collectively as the “Parties” in this Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties hereto
for the provision of engaging a consultant to provide implementation specialized information
technology to enhance the City’s business functionality and overall performance, while maintaining
a high degree of customer satisfaction (“Project”) and to engage a consultant to provide support
services on an on-call, as needed, time-limited basis in the connection with the Project, as detailed
therein.
B. The Parties now wish to amend the Contract in order to increase compensation by
One Million Five Hundred Forty Thousand Dollars ($1,540,000) from Two Million Four Hundred
Thousand Dollars ($2,400,000.00) to a new not-to-exceed amount of Three Million Nine Hundred
Forty Thousand Dollars ($3,940,000) over the term of the contract across a total of seven (7)
consultant agreements (C20174582H, C2017458B, C20174582C, C2017174582D, C20174582E,
C20174582F, and C20174582G).
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of
this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean Contract No. C20174582B
between CONSULTANT and CITY, dated June 22, 2020.
b. Other Terms. Capitalized terms used and not defined in this Amendment
shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 4 “NOT TO EXCEED COMPENSATION” of the Contract is hereby
amended to read as follows:
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“The compensation to be paid to CONSULTANT for performance of the Services
described in Exhibit “A” Scope of Services shall not exceed Three Million Nine Hundred
Forty Thousand Dollars ($3,940,000). The applicable rate schedule by which
CONSULTANT will be paid for Services rendered under this Agreement is set out at
Exhibit “C-1”, entitled “HOURLY RATE SCHEDULE”. Any work performed or expenses
incurred for which payment would result in a total exceeding the maximum
compensation as set forth herein shall be at no cost to the CITY.”
SECTION 3. Legal Effect. Except as modified by this Amendment, all other provisions of the
Contract, including any exhibits thereto, shall remain in full f orce and effect.
SECTION 4. Incorporation of Recitals. The recitals set forth above are terms of this
Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
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SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed
this Amendment effective as of the date first above written.
CITY OF PALO ALTO
_____________________________
City Manager
APPROVED AS TO FORM:
_____________________________
City Attorney or designee
AGREEYA SOLUTIONS, INC.
Officer 1
By:______________________________
Name:___________________________
Title:____________________________
Officer 2
By:______________________________
Name:___________________________
Title:____________________________
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Sanjay Khosla
Managing Partner
Ajay Kaul
Managing Partner
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AMENDMENT NO. 1 TO CONTRACT NO. C20174582C
BETWEEN THE CITY OF PALO ALTO AND
ELEGANT ENTERPRISE-WIDE SOLUTIONS, INC.
This Amendment No. 1 (this “Amendment”) to Contract No. C20174582C (the “Contract” as
defined below) is entered into as of September 25, 2023, by and between the CITY OF PALO ALTO,
a California chartered municipal corporation (“CITY”), and ELEGANT ENTERPRISE-WIDE
SOLUTIONS, INC., a Virginia Corporation, located at 24035 Whitten Farm Ct, Aldie, VA 20105
(“CONSULTANTS”). CITY and CONSULTANT are referred to collectively as the “Parties” in this
Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties hereto
for the provision of engaging a consultant to provide implementation specialized information
technology to enhance the City’s business functionality and overall performance, while maintaining
a high degree of customer satisfaction (“Project”) and to engage a consultant to provide support
services on an on-call, as needed, time-limited basis in the connection with the Project, as detailed
therein.
B. The Parties now wish to amend the Contract in order to increase compensation by
One Million Five Hundred Forty Thousand Dollars ($1,540,000) from Two Million Four Hundred
Thousand Dollars ($2,400,000.00) to a new not-to-exceed amount of Three Million Nine Hundred
Forty Thousand Dollars ($3,940,000) over the term of the contract across a total of seven (7)
consultant agreements (C20174582H, C2017458B, C20174582C, C2017174582D, C20174582E,
C20174582F, and C20174582G).
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of
this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean Contract No. C20174582C
between CONSULTANT and CITY, dated June 22, 2020.
b. Other Terms. Capitalized terms used and not defined in this Amendment
shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 4 “NOT TO EXCEED COMPENSATION” of the Contract is hereby
amended to read as follows:
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“The compensation to be paid to CONSULTANT for performance of the Services
described in Exhibit “A” Scope of Services shall not exceed Three Million Nine Hundred
Forty Thousand Dollars ($3,940,000). The applicable rate schedule by which
CONSULTANT will be paid for Services rendered under this Agreement is set out at
Exhibit “C-1”, entitled “HOURLY RATE SCHEDULE”. Any work performed or expenses
incurred for which payment would result in a total exceeding the maximum
compensation as set forth herein shall be at no cost to the CITY.”
SECTION 3. Legal Effect. Except as modified by this Amendment, all other provisions of the
Contract, including any exhibits thereto, shall remain in full f orce and effect.
SECTION 4. Incorporation of Recitals. The recitals set forth above are terms of this
Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
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SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed
this Amendment effective as of the date first above written.
CITY OF PALO ALTO
_____________________________
City Manager
APPROVED AS TO FORM:
_____________________________
City Attorney or designee
ELEGANT ENTERPRISE-WIDE
SOLUTIONS, INC.
Officer 1
By:______________________________
Name:___________________________
Title:____________________________
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President
Vikas Arora
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AMENDMENT NO. 1 TO CONTRACT NO. C20174582D
BETWEEN THE CITY OF PALO ALTO AND
FORSYS, INC.
This Amendment No. 1 (this “Amendment”) to Contract No. C20174582D (the “Contract” as
defined below) is entered into as of September 25, 2023, by and between the CITY OF PALO ALTO,
a California chartered municipal corporation (“CITY”), and FORSYS INC., a California Corporation,
located at 691 S. Milpitas Blvd., Suite 213, Milpitas, CA 95035 (“CONSULTANTS”). CITY and
CONSULTANT are referred to collectively as the “Parties” in this Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties hereto
for the provision of engaging a consultant to provide implementation specialized information
technology to enhance the City’s business functionality and overall performance, while maintaining
a high degree of customer satisfaction (“Project”) and to engage a consultant to provide support
services on an on-call, as needed, time-limited basis in the connection with the Project, as detailed
therein.
B. The Parties now wish to amend the Contract in order to increase compensation by
One Million Five Hundred Forty Thousand Dollars ($1,540,000) from Two Million Four Hundred
Thousand Dollars ($2,400,000.00) to a new not-to-exceed amount of Three Million Nine Hundred
Forty Thousand Dollars ($3,940,000) over the term of the contract across a total of seven (7)
consultant agreements (C20174582H, C2017458B, C20174582C, C2017174582D, C20174582E,
C20174582F, and C20174582G).
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of
this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean Contract No. C20174582D
between CONSULTANT and CITY, dated June 22, 2020.
b. Other Terms. Capitalized terms used and not defined in this Amendment
shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 4 “NOT TO EXCEED COMPENSATION” of the Contract is hereby
amended to read as follows:
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“The compensation to be paid to CONSULTANT for performance of the Services
described in Exhibit “A” Scope of Services shall not exceed Three Million Nine Hundred
Forty Thousand Dollars ($3,940,000). The applicable rate schedule by which
CONSULTANT will be paid for Services rendered under this Agreement is set out at
Exhibit “C-1”, entitled “HOURLY RATE SCHEDULE”. Any work performed or expenses
incurred for which payment would result in a total exceeding the maximum
compensation as set forth herein shall be at no cost to the CITY.”
SECTION 3. Legal Effect. Except as modified by this Amendment, all other provisions of the
Contract, including any exhibits thereto, shall remain in full f orce and effect.
SECTION 4. Incorporation of Recitals. The recitals set forth above are terms of this
Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
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SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed
this Amendment effective as of the date first above written.
CITY OF PALO ALTO
_____________________________
City Manager
APPROVED AS TO FORM:
_____________________________
City Attorney or designee
FORSYS INC.
Officer 1
By:______________________________
Name:___________________________
Title:____________________________
Officer 2
By:______________________________
Name:___________________________
Title:____________________________
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Jayaprasad Vejendla
CEO
VP, Strategic Accounts
Ramesh Konda
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AMENDMENT NO. 1 TO CONTRACT NO. C20174582H
BETWEEN THE CITY OF PALO ALTO AND
INSPYR SOLUTIONS, LLC
This Amendment No. 1 (this “Amendment”) to Contract No. C20174582H (the “Contract” as
defined below) is entered into as of September 25, 2023, by and between the CITY OF PALO ALTO,
a California chartered municipal corporation (“CITY”), and INSYPR SOLUTIONS, LLC, a Delaware
Limited Liability Corporation, located at 600 Corporate Drive., Suite 500, Fort Lauderdale, FL 33334
(“CONSULTANTS”). CITY and CONSULTANT are referred to collectively as the “Parties” in this
Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties hereto
for the provision of engaging a consultant to provide implementation specialized information
technology to enhance the City’s business functionality and overall performance, while maintaining
a high degree of customer satisfaction (“Project”) and to engage a consultant to provide support
services on an on-call, as needed, time-limited basis in the connection with the Project, as detailed
therein.
B. The CITY and INSYPR SOLUTIONS, LLC entered into the Contract (defined below).
Pursuant to the Novation Agreement (detailed below) executed between INSYPR SOLUTIONS, LLC,
and CITY, wherein INSYPR SOLUTIONS, LLC was transferred the obligations of the Contractor under
the Contract and INSYPR SOLUTIONS, LLC thereby became the Contractor under the Contract.
C. The Parties now wish to amend the Contract in order to increase compensation by One
Million Five Hundred Forty Thousand Dollars ($1,540,000) from Two Million Four Hundred
Thousand Dollars ($2,400,000.00) to a new not-to-exceed amount of Three Million Nine Hundred
Forty Thousand Dollars ($3,940,000) over the term of the contract across a total of seven (7)
consultant agreements (C20174582H, C2017458B, C20174582C, C2017174582D, C20174582E,
C20174582F, and C20174582G).
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of
this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean Contract No. C21074582H dated
June 22, 2020 as assigned by INSYPR SOLUTIONS, LLC pursuant to the
Novation Agreement to Contract No. C21074582H between INSYPR
SOLUTIONS, LLC, and CITY, wherein INSYPR SOLUTIONS, LLC was transferred
the obligations of the Contractor under the Contract INSYPR SOLUTIONS, LLC
thereby became the Contractor under the Contract..
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b. Other Terms. Capitalized terms used and not defined in this Amendment
shall have the meanings assigned to such terms in the Contract .
SECTION 2. Section 4 “NOT TO EXCEED COMPENSATION” of the Contract is hereby
amended to read as follows:
“The compensation to be paid to CONSULTANT for performance of the Services
described in Exhibit “A” Scope of Services shall not exceed Three Million Nine Hundred
Forty Thousand Dollars ($3,940,000). The applicable rate schedule by which
CONSULTANT will be paid for Services rendered under this Agreement is set out at
Exhibit “C-1”, entitled “HOURLY RATE SCHEDULE”. Any work performed or expenses
incurred for which payment would result in a total exceeding the maximum
compensation as set forth herein shall be at no cost to the CITY.”
SECTION 3. Legal Effect. Except as modified by this Amendment, all other provisions of the
Contract, including any exhibits thereto, shall remain in full force and effect.
SECTION 4. Incorporation of Recitals. The recitals set forth above are terms of this
Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
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SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed
this Amendment effective as of the date first above written.
CITY OF PALO ALTO
_____________________________
City Manager
APPROVED AS TO FORM:
_____________________________
City Attorney or designee
INSPYR SOLUTIONS LLC
Officer 1
By:______________________________
Name:___________________________
Title:____________________________
Officer 2
By:______________________________
Name:___________________________
Title:____________________________
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CEO
Trent Beekman
Scott Forester
CFO
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AMENDMENT NO. 1 TO CONTRACT NO. C20174582E
BETWEEN THE CITY OF PALO ALTO AND
OBJECT TECHNOLOGY SOLUTIONS, INC.
This Amendment No. 1 (this “Amendment”) to Contract No. C20174582E (the “Contract” as
defined below) is entered into as of September 25, 2023, by and between the CITY OF PALO ALTO,
a California chartered municipal corporation (“CITY”), and OBJECT TECHNOLOGY SOLUTIONS, INC.,
a Kansas Corporation, located at 6363 College Blvd., Suite 230, Overland Park, Kansas 66211
(“CONSULTANTS”). CITY and CONSULTANT are referred to collectively as the “Parties” in this
Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties hereto
for the provision of engaging a consultant to provide implementation specialized information
technology to enhance the City’s business functionality and overall performance, while maintaining
a high degree of customer satisfaction (“Project”) and to engage a consultant to provide support
services on an on-call, as needed, time-limited basis in the connection with the Project, as detailed
therein.
B. The Parties now wish to amend the Contract in order to increase compensation by
One Million Five Hundred Forty Thousand Dollars ($1,540,000) from Two Million Four Hundred
Thousand Dollars ($2,400,000.00) to a new not-to-exceed amount of Three Million Nine Hundred
Forty Thousand Dollars ($3,940,000) over the term of the contract across a total of seven (7)
consultant agreements (C20174582H, C2017458B, C20174582C, C2017174582D, C20174582E,
C20174582F, and C20174582G).
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of
this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean Contract No. C20174582E
between CONSULTANT and CITY, dated June 22, 2020.
b. Other Terms. Capitalized terms used and not defined in this Amendment
shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 4 “NOT TO EXCEED COMPENSATION” of the Contract is hereby
amended to read as follows:
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“The compensation to be paid to CONSULTANT for performance of the Services
described in Exhibit “A” Scope of Services shall not exceed Three Million Nine Hundred
Forty Thousand Dollars ($3,940,000). The applicable rate schedule by which
CONSULTANT will be paid for Services rendered under this Agreement is set out at
Exhibit “C-1”, entitled “HOURLY RATE SCHEDULE”. Any work performed or expenses
incurred for which payment would result in a total exceeding the maximum
compensation as set forth herein shall be at no cost to the CITY.”
SECTION 3. Legal Effect. Except as modified by this Amendment, all other provisions of the
Contract, including any exhibits thereto, shall remain in full f orce and effect.
SECTION 4. Incorporation of Recitals. The recitals set forth above are terms of this
Amendment and are fully incorporated herein by this reference.
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SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed
this Amendment effective as of the date first above written.
CITY OF PALO ALTO
_____________________________
City Manager
APPROVED AS TO FORM:
_____________________________
City Attorney or designee
OBJECT TECHNOLOGY SOLUTIONS,
INC.
Officer 1
By:______________________________
Name:___________________________
Title:____________________________
Officer 2
By:______________________________
Name:___________________________
Title:____________________________
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Narasimha Gondi
President
VP, Accounting & Finance
Krishna Pal
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AMENDMENT NO. 1 TO CONTRACT NO. C20174582F
BETWEEN THE CITY OF PALO ALTO AND
TECHLINK SYSTEMS, INC.
This Amendment No. 1 (this “Amendment”) to Contract No. C20174582F (the “Contract” as
defined below) is entered into as of September 25, 2023, by and between the CITY OF PALO ALTO,
a California chartered municipal corporation (“CITY”), and TECHLINK SYSTEMS, INC., a California
Corporation, located at 220 Montgomery Street, Suite 1018, San Francisco, CA 94104
(“CONSULTANTS”). CITY and CONSULTANT are referred to collectively as the “Parties” in this
Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties hereto
for the provision of engaging a consultant to provide implementation specialized information
technology to enhance the City’s business functionality and overall performance, while maintaining
a high degree of customer satisfaction (“Project”) and to engage a consultant to provide support
services on an on-call, as needed, time-limited basis in the connection with the Project, as detailed
therein.
B. The Parties now wish to amend the Contract in order to increase compensation by
One Million Five Hundred Forty Thousand Dollars ($1,540,000) from Two Million Four Hundred
Thousand Dollars ($2,400,000.00) to a new not-to-exceed amount of Three Million Nine Hundred
Forty Thousand Dollars ($3,940,000) over the term of the contract across a total of seven (7)
consultant agreements (C20174582H, C2017458B, C20174582C, C2017174582D, C20174582E,
C20174582F, and C20174582G).
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of
this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean Contract No. C20174582F
between CONSULTANT and CITY, dated June 22, 2020.
b. Other Terms. Capitalized terms used and not defined in this Amendment
shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 4 “NOT TO EXCEED COMPENSATION” of the Contract is hereby
amended to read as follows:
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“The compensation to be paid to CONSULTANT for performance of the Services
described in Exhibit “A” Scope of Services shall not exceed Three Million Nine Hundred
Forty Thousand Dollars ($3,940,000). The applicable rate schedule by which
CONSULTANT will be paid for Services rendered under this Agreement is set out at
Exhibit “C-1”, entitled “HOURLY RATE SCHEDULE”. Any work performed or expenses
incurred for which payment would result in a total exceeding the maximum
compensation as set forth herein shall be at no cost to the CITY.”
SECTION 3. Legal Effect. Except as modified by this Amendment, all other provisions of the
Contract, including any exhibits thereto, shall remain in full f orce and effect.
SECTION 4. Incorporation of Recitals. The recitals set forth above are terms of this
Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
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SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed
this Amendment effective as of the date first above written.
CITY OF PALO ALTO
_____________________________
City Manager
APPROVED AS TO FORM:
_____________________________
City Attorney or designee
TECHLINK SYSTEMS, INC.
Officer 1
By:______________________________
Name:___________________________
Title:____________________________
Officer 2
By:______________________________
Name:___________________________
Title:____________________________
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CEO
Jane Kim
CFO
Ronald Alcaraz
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AMENDMENT NO. 1 TO CONTRACT NO. C20174582G
BETWEEN THE CITY OF PALO ALTO AND
ZION CLOUD SOLUTIONS, LLC
This Amendment No. 1 (this “Amendment”) to Contract No. C20174582G (the “Contract” as
defined below) is entered into as of September 25, 2023, by and between the CITY OF PALO ALTO,
a California chartered municipal corporation (“CITY”), and ZION CLOUD SOLUTIONS, LLC, a Illinois
Limited Liability Corporation, located at 2700 Patriot Blvd., Suite 250, Glenview IL 60026
(“CONSULTANTS”). CITY and CONSULTANT are referred to collectively as the “Parties” in this
Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties hereto
for the provision of engaging a consultant to provide implementation specialized information
technology to enhance the City’s business functionality and overall performance, while maintaining
a high degree of customer satisfaction (“Project”) and to engage a consultant to provide support
services on an on-call, as needed, time-limited basis in the connection with the Project, as detailed
therein.
B. The Parties now wish to amend the Contract in order to increase compensation by
One Million Five Hundred Forty Thousand Dollars ($1,540,000) from Two Million Four Hundred
Thousand Dollars ($2,400,000.00) to a new not-to-exceed amount of Three Million Nine Hundred
Forty Thousand Dollars ($3,940,000) over the term of the contract across a total of seven (7)
consultant agreements (C20174582H, C2017458B, C20174582C, C2017174582D, C20174582E,
C20174582F, and C20174582G).
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of
this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean Contract No. C20174582G
between CONSULTANT and CITY, dated June 22, 2020.
b. Other Terms. Capitalized terms used and not defined in this Amendment
shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 4 “NOT TO EXCEED COMPENSATION” of the Contract is hereby
amended to read as follows:
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“The compensation to be paid to CONSULTANT for performance of the Services
described in Exhibit “A” Scope of Services shall not exceed Three Million Nine Hundred
Forty Thousand Dollars ($3,940,000). The applicable rate schedule by which
CONSULTANT will be paid for Services rendered under this Agreement is set out at
Exhibit “C-1”, entitled “HOURLY RATE SCHEDULE”. Any work performed or expenses
incurred for which payment would result in a total exceeding the maximum
compensation as set forth herein shall be at no cost to the CITY.”
SECTION 3. Legal Effect. Except as modified by this Amendment, all other provisions of the
Contract, including any exhibits thereto, shall remain in full f orce and effect.
SECTION 4. Incorporation of Recitals. The recitals set forth above are terms of this
Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
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SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed
this Amendment effective as of the date first above written.
CITY OF PALO ALTO
_____________________________
City Manager
APPROVED AS TO FORM:
_____________________________
City Attorney or designee
ZION CLOUD SOLUTIONS, LLC
Officer 1
By:______________________________
Name:___________________________
Title:____________________________
Officer 2
By:______________________________
Name:___________________________
Title:____________________________
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Carmen Reddy
President
IT Service Delivery Director
Soaham Joshi
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Utilities
Meeting Date: February 12, 2024
Staff Report: 2311-2253
TITLE
Approval of Contract No. C24188884 With WaterTALENT, LLC for Temporary Consultant Support
for Public Works and Utilities Departments in a Not to Exceed Amount of $1,896,000 Over Three
Years, With Two One-Year Extension Options; Not to Exceed $830,400 for Year One and Not to
Exceed $532,800 per Year for Years Two and Three and Optional Extensions if Authorized; CEQA
Status - Not a Project
RECOMMENDATION
Staff recommends the Council (1) approve and authorize the City Manager or designee to execute
a contract with WaterTALENT (Contract C24188884) to provide support for key services for
Utilities Operations and Public Works Regional Water Quality Control Plant (RWQCP) for an
amount not to exceed $1,896,000 over three years; not to exceed amount for year one is
$830,400 and not to exceed amount for years two and three is $532,800 per year; and (2)
authorize City Manager or designee to approve two optional one-year extensions at an additional
not to exceed amount of $532,800 per year.
EXECUTIVE SUMMARY
The Utilities and Public Works Departments have critical operations that require specialized
expertise and certifications to perform. There is a limited number of workers in California with
the necessary qualifications. WaterTALENT employs a pool of consultants with the requisite
certifications who can provide temporary operational support on an on-call basis. Due to existing
vacancies and additional attrition anticipated over the next several years, staff is recommending
a three-year contract with the option for two one-year extensions. This will provide Utilities and
Public Works adequate time for current City employees to gain the necessary certifications
and/or to hire additional qualified employees. The contract will be funded by salary savings from
vacant staff positions.
BACKGROUND
The Utilities Department and the Public Works Department require temporary consultant
support on projects that require specialized expertise and certifications. Existing staff are not
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qualified or do not have the appropriate certifications to perform these tasks and there are a
limited number of qualified candidates outside the City to perform the tasks. Both the Utilities
Department and the Public Works Department have an immediate need for support services
from qualified consultants in the short term to ensure a reliable level of service is maintained.
ANALYSIS
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annual contract renewal date. This staffing is on an on-call basis, and no duration or
compensation commitment is required.
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Manager, WQC: The person providing this service must hold a Grade 5 State Water Resources
Control Board Wastewater Treatment Plant Operator Certificate. This position is responsible for
managing the operations and maintenance of the water quality control plant and recycled water
plant, including laboratory operations, overseeing the development and administration of
policies, procedures, programs, goals, and objectives. This position also participates in annual
and long-range planning activities to anticipate and coordinate the need for, or reduction of,
future resources and develops and implements quality standards for water quality control
operations and maintenance activities. The Manager, WQC also reviews, prepares, and presents
reports on division programs and activities; disseminates compliance reports to applicable
federal, state, and local regulatory agencies as well as establishes quality standards for
operations and maintenance activities to ensure acceptable levels of performance. The Manager
WQC oversees facilities to ensure compliance with applicable OSHA and City safety standards
and programs and oversees the maintenance and operation of applicable plant facilities.
FISCAL/RESOURCE IMPACT
Dept.Certificate Type Hourly Rate
Utilities Grade 5 (Water Distribution Certificate)$190
Public Works Grade 5 (SWRCBWTPOC)$190
Public Works Grade 3 (SWRCBWTPOC)$160
* Note: SWRCBWTPOC is State Water Resources Control Board Wastewater Treatment Plant Operator
Certificate. Chart does not reflect an annual $5.00 per hour escalation after year one.
ENVIRONMENTAL REVIEW
ATTACHMENTS
APPROVED BY:
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CITY OF PALO ALTO CONTRACT NO. C24188884
AGREEMENT FOR PROFESSIONAL SERVICES
BETWEEN THE CITY OF PALO ALTO AND WATERTALENT, LLC.
This Agreement for Professional Services (this “Agreement”) is entered into as of the 12th day of
February 2024 (the “Effective Date”), by and between the CITY OF PALO ALTO, a California
chartered municipal corporation (“CITY”), and WATERTALENT, LLC, a Limited Liability
Company, located at 15233 Ventura Blvd., #615, Sherman Oaks, CA 91403 (“CONSULTANT”).
The following recitals are a substantive portion of this Agreement and are fully incorporated herein
by this reference:
RECITALS
A. CITY intends to engage temporary consultants to support the Utilities and Public Works
Departments (the “Project”) and desires to engage a consultant to provide staffing services in
connection with the Project (the “Services”, as detailed more fully in Exhibit A).
B. CONSULTANT represents that it, its employees and subconsultants, if any, possess 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, entitled “SCOPE OF SERVICES”.
NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this
Agreement, the parties agree as follows:
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.
Optional On-Call Provision (This provision only applies if checked and only applies to
on-call agreements.)
CITY may elect to, but is not required to, authorize on-call Services up to the maximum
compensation amount set forth in Section 4 (Not to Exceed Compensation).
CONSULTANT shall provide on-call Services only by advanced, written authorization
from CITY as detailed in this Section. On-call Services, if any, shall be authorized by
CITY, as needed, with a Task Order assigned and approved by CITY’s Project Manager,
as identified in Section 13 (Project Management). Each Task Order shall be in substantially
the same form as Exhibit A-1 entitled “PROFESSIONAL SERVICES TASK ORDER”.
Each Task Order shall contain a specific scope of services, schedule of performance and
maximum compensation amount, in accordance with the provisions of this Agreement.
Compensation for on-call Services shall be specified by CITY in the Task Order, based on
whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set
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forth in Exhibit C-1, or a negotiated lump sum.
To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s
Project Manager within the time specified by the Project Manager, and upon authorization
by CITY (defined as countersignature by the CITY Project Manager), the fully executed
Task Order shall become part of this Agreement. The cumulative total compensation due
to CONSULTANT for all Task Orders issued under this Agreement shall not exceed the
amount of compensation set forth in Section 4. CONSULTANT shall only be compensated
for on-call Services performed under an authorized Task Order and only up to the
maximum compensation amount set forth in Section 4. Performance of and payment for
any on-call Services are subject to all requirements and restrictions in this Agreement.
SECTION 2. TERM.
The term of this Agreement shall be from the date of its full execution through February 11, 2027
unless terminated earlier pursuant to Section 19 (Termination) of this Agreement. The CITY shall
have the option to renew this Agreement for two additional one-year terms, to be exercised at the
CITY’s sole and absolute discretion. City will provide CONSULTANT with written notice of its
intent to exercise its option to renew no later than 90 days before the expiration of the prior contract
term.
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, entitled “SCHEDULE
OF PERFORMANCE”. Any Services for which times for performance are not specified in this
Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and
timely manner based upon the circumstances and direction communicated to the CONSULTANT.
CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery
of damages for delay if the extension is required due to the fault of CONSULTANT.
SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to
CONSULTANT for performance of the Services shall be based on the compensation structure
detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable expenses
specified therein, and the maximum total compensation for the first three (3) years shall not exceed
One Million Eight Hundred Ninety-Six Thousand Dollars ($1,896,000). The total
compensation for year one (1) shall not exceed Eight Hundred Thirty Thousand Four Hundred
Dollars ($830,400). The total compensation for years Two and Three and the two optional one-
year extensions shall not exceed Five Hundred Thirty-Two Thousand Eight Hundred Dollars
($532,800) per year. The hourly schedule of rates, if applicable, is set out in Exhibit C-1, entitled
“SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would
result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost
to the CITY.
Optional Additional Services Provision (This provision applies only if checked and a
not-to-exceed compensation amount for Additional Services is allocated below under this
Section 4.)
In addition to the not-to-exceed compensation specified above, CITY has set aside the not-
to-exceed compensation amount of Dollars ($ )for the performance of
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Additional Services (as defined below). The total compensation for performance of the
Services, Additional Services and any reimbursable expenses specified in Exhibit C, shall
not exceed Dollars ($ ), as detailed in Exhibit C.
“Additional Services” means 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 at Exhibit A. CITY may elect to, but is not required to, authorize Additional
Services up to the maximum amount of compensation set forth for Additional Services in
this Section 4. CONSULTANT shall provide Additional Services only by advanced,
written authorization from CITY as detailed in this Section. Additional Services, if any,
shall be authorized by CITY with a Task Order assigned and authorized by CITY’s Project
Manager, as identified in Section 13 (Project Management). Each Task Order shall be in
substantially the same form as Exhibit A-1, entitled “PROFESSIONAL SERVICES TASK
ORDER”. Each Task Order shall contain a specific scope of services, schedule of
performance and maximum compensation amount, in accordance with the provisions of
this Agreement. Compensation for Additional Services shall be specified by CITY in the
Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit
C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum.
To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s
Project Manager within the time specified by the Project Manager, and upon authorization
by CITY (defined as countersignature by the CITY Project Manager), the fully executed
Task Order shall become part of this Agreement. The cumulative total compensation to
CONSULTANT for all Task Orders authorized under this Agreement shall not exceed the
amount of compensation set forth for Additional Services in this Section 4.
CONSULTANT shall only be compensated for Additional Services performed under an
authorized Task Order and only up to the maximum amount of compensation set forth for
Additional Services in this Section 4. Performance of and payment for any Additional
Services are subject to all requirements and restrictions in this Agreement.
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, if
applicable, an identification of personnel who performed the Services, hours worked, hourly rates,
and reimbursable expenses), based upon Exhibit C or, as applicable, CONSULTANT’s schedule
of 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 invoices shall be subject to
verification by CITY. CONSULTANT shall send all invoices to CITY’s Project Manager at the
address specified in Section 13 (Project Management) below. CITY will generally process and
pay invoices within thirty (30) days of receipt of an acceptable invoice.
SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All Services shall be performed
by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it,
its employees and subcontractors, if any, possess 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 subcontractors, if any, 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 Services to be furnished by CONSULTANT
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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, as amended from time to time. 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 is solely responsible for costs,
including, but not limited to, increases in the cost of Services, arising from or caused by
CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such
errors and omissions, any change order markup costs, or costs arising from delay caused by the
errors and omissions or unreasonable delay in correcting the errors and omissions.
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 the CITY’s
stated construction budget by ten percent (10%) or more, CONSULTANT shall make
recommendations to 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. CONSULTANT acknowledges and agrees
that CONSULTANT and any agent or employee of CONSULTANT will act as and shall be
deemed at all times to be an independent contractor and shall be wholly responsible for the manner
in which CONSULTANT performs the Services requested by CITY under this Agreement.
CONSULTANT and any agent or employee of CONSULTANT will not have employee status
with CITY, nor be entitled to participate in any plans, arrangements, or distributions by CITY
pertaining to or in connection with any retirement, health or other benefits that CITY may offer its
employees. CONSULTANT will be responsible for all obligations and payments, whether
imposed by federal, state or local law, including, but not limited to, FICA, income tax
withholdings, workers’ compensation, unemployment compensation, insurance, and other similar
responsibilities related to CONSULTANT’s performance of the Services, or any agent or
employee of CONSULTANT providing same. Nothing in this Agreement shall be construed as
creating an employment or agency relationship between CITY and CONSULTANT or any agent
or employee of CONSULTANT. Any terms in this Agreement referring to direction from CITY
shall be construed as providing for direction as to policy and the result of CONSULTANT’s
provision of the Services only, and not as to the means by which such a result is obtained.
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 approval of the City Manager. Any purported
assignment made without the prior written approval of the City Manager will be void and without
effect. Subject to the foregoing, the covenants, terms, conditions and provisions of this Agreement
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will apply to, and will bind, the heirs, successors, executors, administrators and assignees of the
parties.
SECTION 12. SUBCONTRACTING.
Option A: No Subcontractor: CONSULTANT shall not subcontract any portion of the
Services to be performed under this Agreement without the prior written authorization of the City
Manager or designee. In the event CONSULTANT does subcontract any portion of the work to
be performed under this Agreement, CONSULTANT shall be fully responsible for all acts and
omissions of subcontractors.
Option B: Subcontracts Authorized: Notwithstanding Section 11 (Assignment) above, CITY
agrees that subcontractors may be used to complete the Services. The subcontractors authorized
by CITY to perform work on this Project are:
CONSULTANT shall be responsible for directing the work of any subcontractors and for any
compensation due to subcontractors. CITY assumes no responsibility whatsoever concerning
compensation of subcontractors. CONSULTANT shall be fully responsible to CITY for all acts
and omissions of subcontractors. CONSULTANT shall change or add subcontractors only with
the prior written approval of the City Manager or designee.
SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Tyler Reifert,
President, Telephone: 424-832-7217, Email: treifert@watertalent.net as the CONSULTANT’s
Project Manager to have supervisory responsibility for the performance, progress, and execution
of the Services and represent CONSULTANT during the day-to-day performance of the Services.
If circumstances cause the substitution of the CONSULTANT’s Project Manager or any other of
CONSULTANT’s key personnel for any reason, the appointment of a substitute Project Manager
and the assignment of any key new or replacement personnel will be subject to the prior written
approval of the CITY’s Project Manager. CONSULTANT, at CITY’s request, shall promptly
remove CONSULTANT 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 Services
or a threat to the safety of persons or property.
CITY’s Project Manager is Melissa Smart, Utilities Department, Water Gas Wastewater
Operations Division, 250 Hamilton Ave., Palo Alto, CA, 94301, Telephone: 650-496-6940, Email:
Melissa.Smart@CityofPaloAlto.org. CITY’s Project Manager will be CONSULTANT’s point of
contact with respect to performance, progress and execution of the Services. CITY may designate
an alternate Project Manager from time to time.
SECTION 14. OWNERSHIP OF MATERIALS. All work product, including without
limitation, all writings, drawings, studies, sketches, photographs, plans, reports, specifications,
computations, models, recordings, data, documents, and other materials and copyright interests
developed under this Agreement, in any form or media, 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 product pursuant to this Agreement are vested in CITY, and
CONSULTANT hereby waives and relinquishes all claims to copyright or other intellectual
property rights in favor of CITY. Neither CONSULTANT nor its subcontractors, if any, shall
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make any of such work product 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 Services.
SECTION 15. AUDITS. CONSULTANT agrees to permit CITY and its authorized
representatives to audit, at any reasonable time during the term of this Agreement and for four (4)
years from the date of final payment, CONSULTANT’s records pertaining to matters covered by
this Agreement, including without limitation records demonstrating compliance with the
requirements of Section 10 (Independent Contractor). CONSULTANT further agrees to maintain
and retain accurate books and records in accordance with generally accepted accounting principles
for at least four (4) years after the expiration or earlier termination of this Agreement or the
completion of any audit hereunder, whichever is later.
SECTION 16. INDEMNITY.
16.1. To the fullest extent permitted by law, CONSULTANT shall 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 attorney’s 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 a Claim arising from the active
negligence or willful misconduct of an Indemnified Party that is not contributed to by any act of,
or by any omission to perform a duty imposed by law or agreement by, CONSULTANT, its
officers, employees, agents or contractors under this Agreement.
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. No waiver of a condition or nonperformance of an obligation under
this Agreement is effective unless it is in writing in accordance with Section 29.4 of this
Agreement. No delay or failure to require performance of any provision of this Agreement shall
constitute a waiver of that provision as to that or any other instance. Any waiver granted shall
apply solely to the specific instance expressly stated. No single or partial exercise of any right or
remedy will preclude any other or further exercise of any right or remedy.
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, entitled “INSURANCE REQUIREMENTS”. CONSULTANT and its contractors, if any, shall
obtain a policy endorsement naming CITY as an additional insured under any general liability or
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automobile policy or policies.
18.2. All insurance coverage required hereunder shall be provided through
carriers with AM Best’s Key Rating Guide ratings of A-: VII or higher which are licensed or
authorized to transact insurance business in the State of California. Any and all contractors of
CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in
full force and effect during the term of this Agreement, identical insurance coverage, naming CITY
as an additional insured under such policies as required above.
18.3. Certificates evidencing such insurance shall be filed with CITY
concurrently with the execution of this Agreement. The certificates will be subject to the approval
of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary
coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except
after filing with the Purchasing Manager thirty (30) days’ prior written notice of the cancellation
or modification. 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 Chief Procurement Officer 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. If CONSULTANT fails to perform any of its material
obligations under this Agreement, in addition to all other remedies provided under this Agreement
or at law, the City Manager may terminate this Agreement sooner upon written notice of
termination. Upon receipt of any notice of suspension or termination, CONSULTANT will
discontinue its performance of the Services on the effective date in the notice of suspension or
termination.
19.2. In event of suspension or termination, CONSULTANT will deliver to the
City Manager on or before the effective date in the notice of suspension or termination, any and
all work product, as detailed in Section 14 (Ownership of Materials), whether or not completed,
prepared by CONSULTANT or its contractors, if any, in the performance of this Agreement. Such
work product is the property of CITY, as detailed in Section 14 (Ownership of Materials).
19.3. In event of suspension or termination, CONSULTANT will be paid for the
Services rendered and work products delivered to CITY in accordance with the Scope of Services
up to the effective date in the notice of suspension or termination; provided, however, if this
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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
provided in material conformity with this Agreement as such determination is 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, 17, 19.2, 19.3, 19.4, 20, 25,
27, 28, 29 and 30.
19.4. No payment, partial payment, acceptance, or partial acceptance by CITY
will operate as a waiver on the part of CITY of any of its rights under this Agreement, unless made
in accordance with Section 17 (Waivers).
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 Manager at the address of
CONSULTANT recited on the first page of this Agreement.
CONSULTANT shall provide written notice to CITY of any change of address.
SECTION 21. CONFLICT OF INTEREST.
21.1. In executing 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 subcontractors or other persons or parties 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, as amended from time to time. CONSULTANT agrees to notify CITY if any
conflict arises.
21.3. If the CONSULTANT meets the definition of a “Consultant” as defined by
the Regulations of the Fair Political Practices Commission, CONSULTANT will file the
appropriate financial disclosure documents required by the Palo Alto Municipal Code and the
Political Reform Act of 1974, as amended from time to time.
SECTION 22. NONDISCRIMINATION; COMPLIANCE WITH ADA.
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22.1. As set forth in Palo Alto Municipal Code Section 2.30.510, as amended
from time to time, CONSULTANT certifies that in the performance of this Agreement, it shall not
discriminate in the employment of any person due to that person’s race, skin color, gender, gender
identity, age, religion, disability, national origin, ancestry, sexual orientation, pregnancy, genetic
information or condition, 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.
22.2. CONSULTANT understands and agrees that pursuant to the Americans
Disabilities Act (“ADA”), programs, services and other activities provided by a public entity to
the public, whether directly or through a contractor or subcontractor, are required to be accessible
to the disabled public. CONSULTANT will provide the Services specified in this Agreement in a
manner that complies with the ADA and any other applicable federal, state and local disability
rights laws and regulations, as amended from time to time. CONSULTANT will not discriminate
against persons with disabilities in the provision of services, benefits or activities provided under
this Agreement.
SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO
WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally
Preferred Purchasing policies which are available at CITY’s Purchasing Department, hereby
incorporated by reference and as amended from time to time. CONSULTANT shall comply with
waste reduction, reuse, recycling, and disposal requirements of 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:
(a) All printed materials provided by CONSULTANT to CITY generated from a
personal computer and printer including but not limited to, proposals, quotes, invoices, reports,
and public education materials, shall be double-sided and printed on a minimum of 30% or greater
post-consumer content paper, unless otherwise approved by 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.
(b) Goods purchased by CONSULTANT on behalf of CITY shall be purchased in
accordance with 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 Department’s office.
(c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no
additional cost to 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. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE.
CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62
(Citywide Minimum Wage), as amended from time to time. In particular, for any employee
otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a
calendar week within the geographic boundaries of the City, CONSULTANT shall pay such
employees no less than the minimum wage set forth in Palo Alto Municipal Code Section 4.62.030
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for each hour worked within the geographic boundaries of the City of Palo Alto. In addition,
CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in
accordance with Palo Alto Municipal Code Section 4.62.060.
SECTION 25. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of
the Charter of the City of Palo Alto and the Palo Alto Municipal Code, as amended from time to
time. 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 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC
WORKS CONTRACTS.
26.1. This Project is not subject to prevailing wages and related
requirements. CONSULTANT is not required to pay prevailing wages and meet related
requirements under the California Labor Code and California Code of Regulations in the
performance and implementation of the Project if the contract:
(1) is not a public works contract;
(2) is for a public works construction project of $25,000 or less, per California
Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j); or
(3) is for a public works alteration, demolition, repair, or maintenance project of
$15,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and
1773.3(j).
SECTION 27. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS”. For
purposes of this Section 27, a “9204 Public Works Project” means the erection, construction,
alteration, repair, or improvement of any public structure, building, road, or other public
improvement of any kind. (Cal. Pub. Cont. Code § 9204.) Per California Public Contract Code
Section 9204, for Public Works Projects, certain claims procedures shall apply, as set forth in
Exhibit F, entitled “Claims for Public Contract Code Section 9204 Public Works Projects”.
This Project is not a 9204 Public Works Project.
SECTION 28. CONFIDENTIAL INFORMATION.
28.1. In the performance of this Agreement, CONSULTANT may have access to
CITY’s Confidential Information (defined below). CONSULTANT will hold Confidential
Information in strict confidence, not disclose it to any third party, and will use it only for the
performance of its obligations to CITY under this Agreement and for no other purpose.
CONSULTANT will maintain reasonable and appropriate administrative, technical and physical
safeguards to ensure the security, confidentiality and integrity of the Confidential Information.
Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to its
employees, agents and subcontractors, if any, to the extent they have a need to know in order to
perform CONSULTANT’s obligations to CITY under this Agreement and for no other purpose,
provided that the CONSULTANT informs them of, and requires them to follow, the confidentiality
and security obligations of this Agreement.
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28.2. “Confidential Information” means all data, information (including without
limitation “Personal Information” about a California resident as defined in Civil Code Section
1798 et seq., as amended from time to time) and materials, in any form or media, tangible or
intangible, provided or otherwise made available to CONSULTANT by CITY, directly or
indirectly, pursuant to this Agreement. Confidential Information excludes information that
CONSULTANT can show by appropriate documentation: (i) was publicly known at the time it
was provided or has subsequently become publicly known other than by a breach of this
Agreement; (ii) was rightfully in CONSULTANT’s possession free of any obligation of
confidence prior to receipt of Confidential Information; (iii) is rightfully obtained by
CONSULTANT from a third party without breach of any confidentiality obligation; (iv) is
independently developed by employees of CONSULTANT without any use of or access to the
Confidential Information; or (v) CONSULTANT has written consent to disclose signed by an
authorized representative of CITY.
28.3. Notwithstanding the foregoing, CONSULTANT may disclose Confidential
Information to the extent required by order of a court of competent jurisdiction or governmental
body, provided that CONSULTANT will notify CITY in writing of such order immediately upon
receipt and prior to any such disclosure (unless CONSULTANT is prohibited by law from doing
so), to give CITY an opportunity to oppose or otherwise respond to such order.
28.4. CONSULTANT will notify City promptly upon learning of any breach in
the security of its systems or unauthorized disclosure of, or access to, Confidential Information in
its possession or control, and if such Confidential Information consists of Personal Information,
CONSULTANT will provide information to CITY sufficient to meet the notice requirements of
Civil Code Section 1798 et seq., as applicable, as amended from time to time.
28.5. Prior to or upon termination or expiration of this Agreement,
CONSULTANT will honor any request from the CITY to return or securely destroy all copies of
Confidential Information. All Confidential Information is and will remain the property of the CITY
and nothing contained in this Agreement grants or confers any rights to such Confidential
Information on CONSULTANT.
28.6. If selected in Section 30 (Exhibits), this Agreement is also subject to the
terms and conditions of the Information Privacy Policy and Cybersecurity Terms and Conditions.
SECTION 29. MISCELLANEOUS PROVISIONS.
29.1. This Agreement will be governed by California law, without regard to its
conflict of law provisions.
29.2. 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.
29.3. 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
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of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third
parties.
29.4. This Agreement, including all exhibits, constitutes the entire and integrated
agreement between the parties with respect to the subject matter of this Agreement, and supersedes
all prior agreements, negotiations, representations, statements, and undertakings, either oral or
written. This Agreement may be amended only by a written instrument, which is signed by the
authorized representatives of the parties and approved as required under Palo Alto Municipal
Code, as amended from time to time.
29.5. If a court of competent jurisdiction finds or rules that any provision of this
Agreement is void or unenforceable, the unaffected provisions of this Agreement will remain in
full force and effect.
29.6. In the event of a conflict between the terms of this Agreement and the
exhibits hereto (per Section 30) or CONSULTANT’s proposal (if any), the Agreement shall
control. In the event of a conflict between the exhibits hereto and CONSULTANT’s proposal (if
any), the exhibits shall control.
29.7. The provisions of all checked boxes in this Agreement shall apply to this
Agreement; the provisions of any unchecked boxes shall not apply to this Agreement.
29.8. All section headings contained in this Agreement are for convenience and
reference only and are not intended to define or limit the scope of any provision of this Agreement.
29.9. This Agreement may be signed in multiple counterparts, which, when
executed by the authorized representatives of the parties, shall together constitute a single binding
agreement.
29.10 If CITY, within twelve (12) months after conclusion of a person’s
temporary assignment by CONSULTANT at CITY, either directly or indirectly,
including through any company or entity within CITY control or a company affiliated
with CITY, hires that Temporary Employee of CONSULTANT as an employee,
consultant, independent contractor of CITY, or utilizes the Temporary Employee’s
services through another temporary or outsourcing service during such Temporary
Employee’s employment by CONSULTANT or an affiliate of CONSULTANT, , CITY
agrees to pay CONSULTANT a direct hire/conversion fee stipulated by the parties to be
set forth in a Fee Schedule to be amended to this agreement or, in the case of a direct
placement or temp-to-hire conversion, a fee equal to twenty-five percent (25%) of the
employee’s annualized wage or salary offered to Temporary Employee by CITY. If the
offer to Temporary Employee is not considered full-time, the conversion fee shall be
calculated by the average amount of hours worked on a weekly basis then annualized on
a schedule for a 12-month/52-week period.
SECTION 30. EXHIBITS. Each of the following exhibits, if the check box for such exhibit is
selected below, is hereby attached and incorporated into this Agreement by reference as though
fully set forth herein:
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EXHIBIT A: SCOPE OF SERVICES
EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER
EXHIBIT B: SCHEDULE OF PERFORMANCE
EXHIBIT C: COMPENSATION
EXHIBIT C-1: SCHEDULE OF RATES
EXHIBIT D: INSURANCE REQUIREMENTS
THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS
ARE ATTACHED.
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CONTRACT NO. C24188884 SIGNATURE PAGE
IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives
executed this Agreement as of the date first above written.
CITY OF PALO ALTO
____________________________
City Manager
APPROVED AS TO FORM:
__________________________
City Attorney or designee
WATERTALENT, LLC.
Officer 1
By:_____________________________
Name:__________________________
Title:___________________________
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President
Tyler Reifert
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EXHIBIT A
SCOPE OF SERVICES
CONSULTANT shall provide temporary consultants on an on-call basis to support the City’s
Utilities and Public Works departments. Projects will be performed on a Task Order basis, in
accordance with Section 1 (Scope of Services) of this Agreement. Task Order scopes, budgets,
and schedules will be negotiated as projects arise per Section 1.
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EXHIBIT A-1
PROFESSIONAL SERVICES TASK ORDER
CONSULTANT shall perform the Services detailed below in accordance with all the terms and
conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are
incorporated into this Task Order by this reference. CONSULTANT shall furnish the necessary facilities,
professional, technical and supporting personnel required by this Task Order as described below.
CONTRACT NO.
OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE)
1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE):
1B. TASK ORDER NO.:
2. CONSULTANT NAME:
3. PERIOD OF PERFORMANCE: START: COMPLETION:
4 TOTAL TASK ORDER PRICE: $__________________
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $_______________
5. BUDGET CODE_______________
COST CENTER________________
COST ELEMENT______________
WBS/CIP__________
PHASE__________
6. CITY PROJECT MANAGER’S NAME &
DEPARTMENT:_____________________________________
7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A)
MUST INCLUDE:
SERVICES AND DELIVERABLES TO BE PROVIDED
SCHEDULE OF PERFORMANCE
MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)
REIMBURSABLE EXPENSES, if any (with “not to exceed” amount)
8. ATTACHMENTS: A: Task Order Scope of Services B (if any):
_____________________________
I hereby authorize the performance of the
work described in this Task Order.
APPROVED:
CITY OF PALO ALTO
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
of this Task Order and warrant that I have
authority to sign on behalf of Consultant.
APPROVED:
COMPANY NAME: ______________________
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
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Professional Services
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EXHIBIT B
SCHEDULE OF PERFORMANCE
CONSULTANT shall perform the Services so as to target completing 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.
Milestones Number of Days/Weeks (as specified below)
1. 1 week from contract signing
2. 1 week from City request (accepted Task Order)
3. (per
recruitment)
2-6 weeks from Candidate screening
4.
(during active recruitments)
At least twice monthly, or more frequently as
agreed.
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EXHIBIT C
COMPENSATION
CITY agrees to compensate CONSULTANT for the Services performed in accordance with the
terms and conditions of this Agreement, including Services, any specified reimbursable expenses,
and Additional Services (if any, per Section 4 of the Agreement), based on the hourly rate schedule
attached as Exhibit C-1.
The compensation to be paid to CONSULTANT under this Agreement for all Services, any
specified reimbursable expenses, and Additional Services (if any, per Section 4), shall not exceed
the amount(s) stated in Section 4 of this Agreement. CONSULTANT agrees to complete all
Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4),
within this/these amount(s). Any work performed or expenses incurred for which payment would
result in a total exceeding the maximum amount of compensation set forth in this Agreement shall
be at no cost to the CITY.
REIMBURSABLE EXPENSES
CONSULTANT’S ordinary business expenses, such as administrative, overhead,
administrative support time/overtime, information systems, software and hardware,
photocopying, telecommunications (telephone, internet), in-house printing, insurance and
other ordinary business expenses, are included within the scope of payment for Services and
are not reimbursable expenses hereunder.
Reimbursable expenses, if any are specified as reimbursable under this section, will be
reimbursed at actual cost. The expenses (by type, e.g., travel) for which CONSULTANT
will be reimbursed are: NONE up to the not-to-exceed amount of: $0.00.
A. Travel outside the San Francisco Bay Area, including transportation and meals, if
specified as reimbursable, will be reimbursed at actual cost subject to the City of Palo Alto’s
policy for reimbursement of travel and meal expenses.
B. Long distance telephone service charges, cellular phone service charges, facsimile
transmission and postage charges, if specified as reimbursable, will be reimbursed at actual
cost.
All requests for reimbursement of expenses, if any are specified as reimbursable under this
section, shall be accompanied by appropriate backup documentation and information.
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EXHIBIT C-1
SCHEDULE OF RATES
CONSULTANT’s schedule of rates is as follows:
Dept. Certificate Type Hourly Rate
Utilities Grade 5 (Water Distribution Certificate) $190
Public Works Grade 5 (SWRCBWTPOC) $190
Public Works Grade 3 (SWRCBWTPOC) $160
Note: SWRCBWTPOC is State Water Resources Control Board Wastewater Treatment Plant Operator Certificate
Annual rate escalations of $5/hr beginning on the date of execution of this contract shall be
applied to all tasks for the duration of the term of this contract.
*Should the City have a request for temporary support that is not certified as described in the
table above, the City may inquire with waterTALENT directly and a quote shall be provided for
the support on a point-of-need basis.
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EXHIBIT D
INSURANCE REQUIREMENTS
CONSULTANTS 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 HEREIN.
REQUIRED TYPE OF COVERAGE REQUIREMENT
MINIMUM LIMITS
EACH
OCCURRENCE AGGREGATE
YES
YES
WORKER’S COMPENSATION
EMPLOYER’S LIABILITY
STATUTORY
STATUTORY 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: CONSULTANT, 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
CONSULTANT AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH
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 CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR
CONSULTANT’S AGREEMENT TO INDEMNIFY CITY.
II. THE CONSULTANT MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE
TO THE FOLLOWING: PURCHASINGSUPPORT@CITYOFPALOALTO.ORG
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.
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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 CONSULTANT 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 CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY
WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.
EVIDENCE OF INSURANCE AND OTHER RELATED NOTICES ARE REQUIRED TO BE
FILED WITH THE CITY OF PALO ALTO AT THE FOLLOWING EMAIL ADDRESS:
PURCHASINGSUPPORT@CITYOFPALOALTO.ORG
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City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Planning and Development Services
Meeting Date: February 12, 2024
Report #:2402-2574
TITLE
Adopt a Resolution Modifying the City’s Objective Design Standards for SB 9 Projects.
RECOMMENDATION
Staff recommends Council adopt the attached Resolution (Attachment A) modifying the
objective design standards for development pursuant to California Senate Bill 9 (SB 9).
EXECUTIVE SUMMARY
This report transmits a resolution that refines the City’s SB 9 objective design standards. The
standards were first introduced in late 2021 and quickly prepared in response to changes in
state law. Council previously directed staff to include review of the SB 9 regulations in the work
plans of the Architectural Review Board (ARB) and Planning and Transportation Commission
(PTC) and return with updated standards based on application of the standards to projects. The
City’s Architectural Review Board reviewed the standards over several meetings and supports
the recommended revisions. Staff also met with local architects to receive input on the subject
design standards. The proposed changes reduce the overall number of requirements, due in
part to elimination of redundant provisions or overlapping regulations and improve overall
clarity for staff and applicants.
BACKGROUND
The Housing Opportunity and More Efficiency (HOME) Act, or SB 9, was enacted by the state
legislature and signed into law by Governor Newsom in 2021 and became effective January 1,
2022. This law generally allows single family zoned properties to add an additional dwelling unit
that can be combined with a junior and/or accessory dwelling unit (J/ADU), or subdivide an
existing single family zoned lot into two lots (also referred to as an urban lot split). This law
essentially allows for up to four units on existing single family zoned lots or split across newly
created lots.
In late 2021 and early 2022, the City Council enacted interim ordinances (#5538, #5542, and
#5546) to amend the zoning code to respond to SB 9, including standards for urban lot splits.
The City Council adopted a set of objective design standards for the ministerial processing of SB
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9 projects in December 2021. These design standards were modeled after the Single-Family
Individual Review (IR) Guidelines focused on privacy, massing and streetscape for two story
home developments approved through the City’s discretionary IR application process.1 As
ministerial projects, SB 9 projects do not require review by the ARB or PTC; these are processed
administratively by PDS staff.
1 The IR process is a discretionary process, where the Director’s decisions are appealable to City Council; the
program is in place for two-story homes and second floor additions. More about the IR process is viewable at this
link: https://www.cityofpaloalto.org/Departments/Planning-Development-Services/Current-Planning/Forms-
Applications
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projects and an additional 20 that apply to some projects; changes to improve administration,
improve clarity and better convey design intent; and allow design flexibility to address a wider
range of architectural styles.
2
DISCUSSION
2 Link to most recent ARB online minutes for the SB 9 project: November 16, 2023:
https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/agendas-minutes/architectural-
review-board/2024/arb-draft-minutes-11-16-23.pdf
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units (not including J/ADU units) over the eight year housing cycle. This change is not reflected
in the attached resolution and would require a text amendment to the municipal code. This
effort to increase SB 9 floor area is expected to be initiated in 2025.
3. The SB 9 objective design standards address privacy, height, massing,
streetscape, and neighborhood context.
FISCAL/RESOURCE IMPACT
POLICY IMPLICATIONS
3 Link to Eichler Neighborhood Design Guidelines: https://www.cityofpaloalto.org/files/assets/public/v/1/planning-
amp-development-services/eichler-neighood-design-guidelines/2018-04-02_palo-alto-eichler-design-
guidelines_adopted-design-guidelines.pdf
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signaled its support to expand opportunities for SB 9 production in Palo Alto through a program
that will allow for increases in SB 9 unit size.
STAKEHOLDER ENGAGEMENT
ENVIRONMENTAL REVIEW
ATTACHMENTS
APPROVED BY:
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Resolution No. ____
Resolution of the Council of the City of Palo Alto Amending the Objective
Design Standards for SB9 Development
WHEREAS, on December 6, 2021, the City Council adopted Urgency Ordinance no. 5538,
as well as objective design standards to govern development under the Senate Bill 9 (2021) (SB9),
and directed staff to include in work plans of the City’s Architectural Review Board (ARB) and
Planning and Transportation Commission (PTC) reviews of these standards; and
WHEREAS, on January 24, 2022 and April 11, 2022, the City Council adopted Interim
Ordinance nos. 5542 and 5546, respectively, replacing and amending Ordinance no. 5538.
WHEREAS, on February 8, 2023, the Planning and Transportation Commission reviewed
and recommended adoption of a permanent ordinance governing SB 9 projects; and
WHEREAS, on June 12, 2023, the City Council adopted Ordinance no. 5587 governing SB
9 projects; and
WHEREAS, in March, April, May, and November 2023, the City’s Architectural Review
Board provided feedback to staff and Council to amend the SB9 objective development
standards, in public hearings allowing for public testimony, and included consideration of focus
group input from architects who had experience as applicants for SB9 projects;
NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows:
SECTION 1. The City Council adopts the attached objective design standards for SB9
development (Exhibit 1), which shall be mandatory for SB9 development unless applicants prefer
to apply under the Individual Review program set forth in Palo Alto Municipal Code Sections
18.12.110 and 18.77.075;
//
//
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Attachment A -
Resolution Adopting
Revised SB 9 Objective
Design Standards
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SECTION 2. The Council finds that the revisions to the SB9 project objective design
standards will facilitate streamlined review of SB9 projects and are not considered a project
under the California Environmental Quality Act because it can be seen with certainty that there
is no possibility that the activity in question may have a significant impact on the environment.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST: APPROVED:
________________________ ______________________________
City Clerk Mayor
APPROVED AS TO FORM:
________________________ ______________________________
Assistant City Attorney City Manager
_____________________________
Director of Planning and
Development Services
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Resolution Adopting
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Design Standards
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EXHIBIT 1
SB 9 Objective Design Standards
Revised 1/26/2024
Applicability: All SB 9 Projects must meet all requirements of the Zoning Code, including
development standards, and special requirements for Flood Zones, Single-Story Overlays, etc.
They must additionally meet all applicable SB 9 Objective Design Standards (ODS) per PAMC
18.42.180(e)(2)).
Section A: All
The following ODS apply to all proposed new housing units as a part of an SB 9 project. When
existing units do not meet the ODS, they shall be treated as existing non-conforming when
setback shall be no less than the average front setback of the homes on lots to either side of
the subject lot, up to a maximum of 25 feet. Otherwise, the zoning minimum front setback or
Barbara’ texture as described in the Technical Services Information Bureau, Chapter 5 -
Plaster Textures & Acrylic Finishes (2011). For additions, stucco plaster texture on the
column(s) and more than 3 feet deep), occur on more than half of the houses on the same
side of the block, including the subject site, the proposed house(s) with street frontage shall
width shall not have asphalt or grey concrete surfaces. They must have a decorative surface
minimum of 5 feet behind the forwardmost plane of the front facade or 3 feet behind the
forwardmost plane of the street-side façade. The forwardmost façade plane may be a
building wall or porch with posts/columns and must be at least 12 feet wide. In mapped
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Resolution Adopting
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Design Standards
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30 percent of the total facade width facing that street, except that it may be 12 feet wide in
color, or panel design pattern of the entry door, window fenestration, or exterior cladding
shall be 16 feet and the maximum garage door height shall be 8 feet. If two single-wide
garage doors are used instead of one double-wide door, each door's maximum width shall be
roofs with pitches 9:12 or greater, 25 feet for roofs with pitches 3:12, up to 9:12, and 22 feet
for roofs with pitches less than 3:12, inclusive of parapets on flat roofs. In flood zones, the
maximum height is increased by one-half of the increase in elevation required to reach base
square feet of glazing in a large window, multi-panel window or glazed door, or bay window
form, with minimum dimensions of 3 feet. In an Eichler tract, clerestory windows may have a
the exterior wall face or have trim at least 2 inches wide and 0.5 inches thick on all four
Section B: Two-Story Houses
edges (i.e., eaves or parapets) shall not exceed 18 inches above the average height of the
first-floor eave or parapet of the homes on the abutting lots at side lot lines as measured at
those homes' eaves nearest the subject lot. This first-floor roof edge height limit shall also
extend 15 feet back from the building corner. This standard shall be 24 inches within a flood
zone if either of the abutting homes’ first-floor levels does not meet current flood zone
regulations. This standard applies to the eave side of pitch roof forms and not the rake side
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Resolution Adopting
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Design Standards
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roof edge (eave or parapet) shall not exceed 18 inches above either: (a) the average height of
the upper floor street-facing eave or roof edge of homes to each side, or (b) in the case of
exceed 15 feet in height as measured from existing grade. The maximum garage wall plate
shall be permitted per dwelling and shall: (a) only be permitted on a street-facing facade, (b)
be located at least 10 feet from any interior side lot line with a 5.5-foot-tall solid privacy wall
or be located at least 30 feet from any interior side lot line, and (c) be limited in size to no
having a typical mature height of at least 25 feet and mature canopy width of 15 feet at a
quantity of at least one per 25 linear feet along each interior lot line. Existing trees to be
retained that are at least 25 feet tall and 15 feet wide count towards the required planting.
Three closely spaced tall screening shrubs with a mature height of at least 15 feet and a
mature width of at least 3 feet may be substituted for one screening tree.
Privacy screening landscape shall be located to align with proposed second-floor windows
by botanical name with at least 50 percent of screening trees and shrubs being evergreen.
Screening trees shall be specified and planted at 24-inch box size or larger and 8 feet height
or taller. Screening shrubs shall be specified and planted at 15-gallon size or larger and 8 feet
B9: PLANTING ADJACENT PUE’S: Where an easement such as a PUE exists along an interior lot
line, privacy landscaping is required to be planted on the same side of the easement as the
facing an interior lot line that is located less than 20 feet from a side or rear lot line, one of
the following shall be used: (a) permanent obscure glazing to at least 5 feet from the finished
floor, or (b) exterior mounted permanent architectural privacy screens that block views more
than 70%, or (c) windows with sills above 5 feet from the finished floor level. In a stairway,
the finished floor is the height of the landing.
This standard shall also apply to first-floor windows less than 6 feet from a property line
windows on the upper level with a sill height less than 5 feet above the finished floor and
within 20 feet of an interior side lot line shall be hinged so the windows open towards the
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Resolution Adopting
Revised SB 9 Objective
Design Standards
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level.
Section C: New or Expanded Second Story Development Next to One-Story House(s)
The following Standards apply when an SB 9 project includes a new or expanded second story
is single-story or has a second-floor area no more than 500 square feet, the side daylight
plane shall be measured from 8 ft above average grade instead of 10 ft. In the case of an
Urban Lot Split, the daylight plane only applies to the original property lines.
In flood zones, the average grade for determining daylight plane is increased by one-half of
the increase in elevation required to reach base flood elevations, up to a maximum increase
single-story or has a second-floor area no more than 500 square feet, all houses with
frontage on the street shall have either: (a) a one-story building form (excluding garages) at
least 6 feet forward of the second-floor wall face, and at least 10 feet wide; or (b) a
Section D: Flag Lots and Substandard Lots
The following ODS applies only for projects proposed on an existing flag lot or substandard
(or similar lots without street frontage) and/or substandard lots prior to an Urban Lot Split, a
Section E: Eichler Neighborhoods
The following ODS apply only in mapped Eichler Tracts, as listed on the map published in the
forward of the front facade plane of the house so long as the garage or carport is: (a) no
more than 21 feet wide, (b) has a roof pitch of 3:12 (slope of 3 vertical feet for every 12
horizontal feet) or less, and (c) has a maximum height of no more than 12 feet above existing
not exceed 22 feet, as measured from existing grade to the roof surface. Properties in flood
zones shall be permitted to increase building height by one-half foot for each foot that the
following: (a) roof pitches no more than 3:12, (b) gable, shed, butterfly, or flat roof forms,
and (c) 2-foot minimum overhangs at eave and rake sides of roof forms for at least 50
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Design Standards
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cladding shall be vertical board channel or flush siding, wood tongue, and groove board
siding, wood nickel-gap siding, smooth fiber cement panels, or metal panels. Board-form
concrete, concrete block, or stucco may be used as a secondary material, but collectively,
be used. A covered trellis used as a colonnade or a side porch that does not project forward
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Attachment A -
Resolution Adopting
Revised SB 9 Objective
Design Standards
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Attachment B
Table 1: Revised Objective Design Standards
All
1.3C: FRONT SETBACK Where the contextual
front yard setback does not apply, the front
setback shall be no less than the average front
setback of the homes on lots to either side of
the subject lot. (Note: In all cases, the
zoning minimum front setback or
special setback would still apply.)
A1: FRONT SETBACK Where the contextual front
yard setback does not apply, the front setback
shall be no less than the average front setback of
the homes on lots to either side of the subject
lot, up to a maximum of 25 feet. Otherwise, the
zoning minimum front setback or
special setback would still apply.
Added that in no circumstance would
this standard create a setback larger
than 25 ft. on a property where the
contextual front yard setback does not
apply
All
4.3C: STUCCO TEXTURE: When stucco is used it
shall be steel-troweled ‘Smooth’ or ‘Santa
Barbara’ texture as described in the Technical
Services Information Bureau, Chapter 5 - Plaster
Textures & Acrylic Finishes (2011). For additions,
stucco texture on the addition shall be
allowed to match the stucco texture of the
existing house.
A2: STUCCO TEXTURE: When stucco is used it
shall be steel-troweled ‘Smooth’ or ‘Santa
Barbara’ texture as described in the Technical
Services Information Bureau, Chapter 5 - Plaster
Textures & Acrylic Finishes (2011). For additions,
stucco texture on the addition shall be
allowed to match the stucco texture of the
existing house.
No change
All
4.4A: CONTEXTUAL PORCH ENTRIES: If
porches (i.e.
roofed, street-facing porches with posts/column
(s) and more than 3 feet deep), occur on at least
50 percent of homes on the block of the subject
lot (counting only homes on the subject lot side
of the street), the proposed house shall include a
street-facing porch no less than 6 feet deep and
8 feet wide.
A3: CONTEXTUAL PORCH ENTRIES: If
porches (i.e., roofed, street-facing porches with
posts/ column(s) and more than 3
feet deep), occur on more than half of the
houses on the same side of the block, including
the subject site, the proposed house(s) with
street frontage shall include a street-facing
porch no less than 4.5 feet deep and 6 feet
wide.
Clarified this only applies to houses
with street frontage. Reduced the
minimum size of porch required.
All
1.1A: DRIVEWAYS: One curb cut and driveway
per street frontage. Shared driveways are
encouraged but require an easement to
which the City is a third party.
A4: DRIVEWAYS: One curb cut and driveway per
street frontage. Shared driveways are
encouraged but require an easement to
which the City is a third party.
No change
All
1.1B: DRIVEWAY WIDTH:
18-foot maximum driveway width (inclusive
of uncovered parking) within a front or street
side yard setback.
A5: DRIVEWAY WIDTH:
18-foot maximum driveway width (inclusive
of uncovered parking) within a front or street
side yard setback.
No change
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Standards Revision Crosswalk
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1.1D WALKWAY SEPARATION: Walkways shall be
separated from driveways by a minimum of 4
feet of landscape planting or extend
sideways (that is, perpendicular) from driveway
so that no additional parking or paved
turnaround space is created in a front or street
side yard beyond that of the maximum allowed
driveway width.
A6: WALKWAY SEPARATION: Walkways shall be
separated from driveways by a minimum of 2
feet of landscape planting or shall be a different
paving material than the driveway.
Reduces minimum separation to allow
for easier compliance on narrower lots.
All
1.1C. PLANTING STRIP: A minimum
two-foot wide, landscaped planting strip
is required between a driveway and/or
uncovered parking space and an interior lot line.
A7. PLANTING STRIP: A minimum two-foot wide,
landscaped planting strip is required between a
driveway and/or uncovered parking space and
an interior lot line.
No change
All
1.1F: DRIVEWAY MATERIALS: Driveway and
uncovered parking surfaces that exceed 10 feet
in width shall not have asphalt or grey concrete
surfaces. They must have a decorative surface to
blend with the landscape such pavers, brick, or
colored concrete.
A8: DRIVEWAY MATERIALS: Driveway and
uncovered parking surfaces that exceed 10 feet
in width shall not have asphalt or grey concrete
surfaces. They must have a decorative surface to
blend with the landscape such as stone pavers,
grass pavers, or bricks.
Removed colored concrete as an
option.
All
1.2A: GARAGE LOCATION: Attached or detached
garages/carports must be located a minimum of
5 feet behind the forwardmost plane of the front
facade or 3 feet behind the forwardmost plane
of the street-side façade.
The forwardmost façade plane may be a building
wall or porch with posts/columns and must be at
least 12 feet wide.
A9: GARAGE LOCATION: Attached garages
adjacent to the front setback must be located a
minimum of 5 feet behind
the forwardmost plane of the front facade or 3
feet behind the forwardmost plane of
the street-side façade. The forwardmost façade
plane may be a building wall or porch with
posts/columns and must be at least
12 feet wide.
In mapped Eichler neighborhoods, this standard
does not apply.
Simplified text, detached garages are
already required to be back from the
front property line. Clarified that this
standard only applies when the garage
is near a front/street side setback.
All
1.2B: GARAGE WIDTH: An attached or detached
garage/carport facing the street shall be no
more than 30 percent of the total facade width
facing that street, except that it may be 12 feet
wide in any circumstance.
A10: GARAGE WIDTH: An attached garage or
carport facing the street shall be no more than
30 percent of the total facade width facing that
street, except that it may be 12 feet wide in any
circumstance.
No change
All
4.5A: GARAGE DOOR DESIGN AND MATERIALS:
The garage door shall match the material, color,
and panel design pattern of the entry door or
window fenestration.
A11: GARAGE DOOR DESIGN AND MATERIALS:
The garage door shall match the material, color,
or panel design pattern of the entry door,
Added option for garage door to match
exterior cladding material
Item 10
Attachment B - SB 9 Objective Design
Standards Revision Crosswalk
Item 10: Staff Report Pg. 14 Packet Pg. 287 of 428
window fenestration, or exterior cladding
material.
All
4.5B: GARAGE DOOR SIZE: The maximum garage
door width shall be 16 feet and the maximum
garage door height shall be 8 feet. If two single-
wide garage doors are used instead of one
double-wide door, each door's maximum width
shall be 9 feet and maximum height 8 feet.
A12: GARAGE DOOR SIZE: When visible from the
street, the maximum garage door width shall be
16 feet and the maximum garage door height
shall be 8 feet. If two single-wide garage
doors are used instead of one double-wide door,
each door's maximum width shall be 9 feet and
maximum height 8 feet.
No change
All
5.4B: ROOF DECK NOT PERMITTED: A roof deck
(i.e., a deck above of the first level of a single-
story building or second level of a two-story
building) shall not be permitted.
A13: ROOF DECK NOT PERMITTED: A roof deck
(i.e., a deck above the first level of a single-story
building or second level of a two-story building)
shall not be permitted.
No change
All
2.1B: ROOF HEIGHT FOR VARIED ROOF PITCHES:
Roof height shall be limited to 27 feet for roofs
with pitches 9:12 or greater, 25 feet for roofs
with pitches 3:12, up to 9:12, and 22
feet for roofs with pitches less than 3:12.
Properties in flood zones shall be permitted to
increase building height by one-half foot for
each foot that the base flood elevation exceeds
existing grade.
A14: ROOF HEIGHT FOR VARIED ROOF PITCHES:
Roof height shall be limited to 27 feet for roofs
with pitches 9:12 or greater, 25 feet for roofs
with pitches 3:12, up to 9:12, and 22
feet for roofs with pitches less than 3:12,
inclusive of parapets on flat roofs. In flood zones,
the maximum height is increased by one-half of
the increase in elevation required to reach base
flood elevations, up to a maximum increase of
30 inches.
Text edits to floor zone language to be
consistent with PAMC 18.12
All
3.4A: GABLE ROOF FORMS: No more
than three gable forms on an elevation facing a
public street.
A15: GABLE ROOF FORMS: No more
than three gable forms on an elevation facing a
public street.
No change
All 3.4B: BAY WINDOWS: No more than two bay
windows on an elevation facing a public street.
A16: BAY WINDOWS: No more than two bay
windows on an elevation facing a public street.
No change
All
4.1A: FAÇADE VISUAL FOCAL POINT: Each street
facing building elevation shall have a significant
visual focal point, defined as either: (a) at least
50 square feet of glazing in a large window,
multi-panel window or glazed door, or bay
window form, or (b) a roofed or trellised porch
at least 6 feet deep and 8 feet wide and no more
than 12 feet tall.
A17: STREET-FACING WINDOWS: Each street-
facing building elevation shall have at least 20
square feet of glazing in a large window, multi-
panel window or glazed door, or bay window
form, with minimum dimensions of 3 feet.
In an Eichler tract, clerestory windows may have
a reduced minimum dimension.
Intent clarified to require window(s)
facing the street. Minimum window
sized reduced to allow broader
architectural styles and accommodate
smaller units.
Porch requirements are in ODS A3.
Item 10
Attachment B - SB 9 Objective Design
Standards Revision Crosswalk
Item 10: Staff Report Pg. 15 Packet Pg. 288 of 428
All
4.3A: WINDOW TO WALL DETAILING: Window
frames shall be recessed at least 2 inches from
the exterior wall face or have trim at least 3.5
inches wide on all four window sides. Stucco
over foam shall not be used as window trim.
A18: WINDOW TO WALL DETAILING: Window
frames shall be recessed at least 2 inches from
the exterior wall face or have trim at least 2
inches wide and 0.5 inches thick on all four
window sides. Stucco over foam shall not be
used as window trim.
Changed minimum window trim from
3.5 wide to 2 in wide and .5 in thick.
All
4.3B: WINDOW PATTERNS: Window fenestration
with divided lite appearance shall have exterior
applied muntin bars (i.e., true or simulated
divided lites).
A19: WINDOW PATTERNS: Window fenestration
with divided lite appearance shall have exterior
applied muntin bars (i.e., true or simulated
divided lites).
No change
Applicability Current SB 9 Objective Design Standards Proposed SB 9 Objective Design Standards Type of Change
Two Story
1.3D: SECOND FLOOR STEPBACKS: Second floor
area shall not be permitted within
the standard side or rear setbacks of the
underlying single family zoning district.
B1: SECOND FLOOR LOCATION: Second floor
area shall not be permitted within
the standard side or rear setbacks of the
underlying single family zoning district.
No change
Two Story
1.3A: SECOND FLOOR SIZE: The maximum floor
area above the first-floor level: (a) shall not
exceed 35 percent of total gross floor area on
the lot except as noted in
subsection (b) or Standard 1.3B. (b) shall not
exceed 30 percent of the total gross floor area
where an abutting lot along a side lot line has a
one-story home or home with no more than 500
square feet of second floor area.
B2: SECOND FLOOR SIZE: The maximum second-
floor area shall not exceed 35 percent of the
allowable gross floor area for the lot, or 400 sf,
whichever is larger.
Simplified text, and provided a
minimum allowable second floor area
to accommodate at least two
bedrooms and bathrooms on the
second floor, for families.
Two Story
2.3A: CONTEXTUAL FIRST FLOOR EAVE HEIGHT:
The height of the first floor's street facing roof
edges (i.e., eaves or parapets) shall not exceed
18 inches above the average height of the first-
floor eave or parapet of the homes on the
abutting lots at side lot lines as measured at
those homes' eaves nearest the subject lot. This
first-floor roof edge height limit shall also extend
15 feet back from the building corner. This
standard shall be 24 inches within a flood zone if
either of the abutting homes’ first-floor level
does not meet current flood zone regulations.
This standard applies to the eave side of pitch
B3: CONTEXTUAL FIRST FLOOR EAVE HEIGHT:
The height of the first floor's street-facing roof
edges (i.e., eaves or parapets) shall not exceed
18 inches above the average height of the first-
floor eave or parapet of the homes on the
abutting lots at side lot lines as measured at
those homes' eaves nearest the subject lot. This
first-floor roof edge height limit shall also extend
15 feet back from the building corner. This
standard shall be 24 inches within a flood zone if
either of the abutting homes’ first-floor levels
does not meet current flood zone regulations.
This standard applies to the eave side of pitch
No change
Item 10
Attachment B - SB 9 Objective Design
Standards Revision Crosswalk
Item 10: Staff Report Pg. 16 Packet Pg. 289 of 428
roof forms and not the rake side such as at a
gable.
roof forms and not the rake side such as at a
gable.
Two Story
2.3B: CONTEXTUAL SECOND FLOOR EAVE
HEIGHT: The height of the upper floor's street
facing roof edge (eave or parapet) shall not
exceed 18 inches above either: (a) the average
height of the upper floor street facing eave or
roof edge of homes to each side, or (b) in the
case of only one home having a second floor, the
height of that home's eaves.
B4: CONTEXTUAL SECOND FLOOR EAVE HEIGHT:
The height of the upper floor's street-facing roof
edge (eave or parapet) shall not exceed 18
inches above either: (a) the average height of
the upper floor street-facing eave or roof edge
of homes to each side, or (b) in the case of only
one home having a second floor, the height of
that home's eaves.
No change
Two Story
3.1A: GARAGE HEIGHT AND MASS: Maximum
height of a roof over an attached garage shall
not exceed 15 feet in height as measure from
existing grade. The maximum garage wall plate
height shall not exceed 10 feet.
B5: GARAGE HEIGHT AND MASS: Maximum
height of a roof over an attached garage shall
not exceed 15 feet in height as measure from
existing grade. The maximum garage wall plate
height shall not exceed 10 feet.
No change
Two Story
5.4A: SECOND FLOOR BALCONY LIMITATIONS:
No more than one second floor deck/balcony
shall be permitted per dwelling and
shall: (a) only be permitted on a street facing
facade, (b) be located at least 20 feet from any
interior side lot line, and (c) be limited in size to
no more than 40 square feet.
B6: SECOND FLOOR BALCONY LIMITATIONS: No
more than one second-floor deck/balcony shall
be permitted per dwelling and shall: (a) only
be permitted on a street-facing
facade, (b) be located at least 10 feet from any
interior side lot line with a 5.5-foot-tall solid
privacy wall or be located at least 30 feet from
any interior side lot line, and (c) be limited in size
to no more than 40 square feet.
Added privacy wall requirement to
allow balconies 10-30 feet of a side
property line
Two Story
1.4A: SCREENING LANDSCAPE: Plant screening
trees with a species having a typical mature
height of at least 25 feet, and mature canopy
width of 15 feet at a quantity of at least one per
25 linear feet along each interior lot line. Existing
trees to be retained that are at least 25 feet tall
and 15 feet wide may substitute for required
planting on a one-to-one ratio. Three closely
spaced tall screening shrubs with a mature
height of at least 20 feet and mature width of at
least 5 feet may be substituted for one screening
tree.
B7: SCREENING LANDSCAPE: For two-story
houses, plant screening trees with a species
having a typical mature height of at least 25
feet and mature canopy width of 15 feet at a
quantity of at least one per 25 linear feet along
each interior lot line. Existing trees to
be retained that are at least 25 feet tall and 15
feet wide count towards the required planting.
Three closely spaced tall screening shrubs with a
mature height of at least 15 feet and a mature
width of at least 3 feet may be substituted for
one screening tree.
Privacy screening landscape shall be located to
align with proposed second-floor windows
Clarified intent of the standard
regarding spacing and placement of
trees/shrubs. Combined with text from
5.2D
Item 10
Attachment B - SB 9 Objective Design
Standards Revision Crosswalk
Item 10: Staff Report Pg. 17 Packet Pg. 290 of 428
across the side and rear lot lines and between
windows at facing units on a single property.
Two Story
1.4B: PLANTING TYPE AND SIZE: Screening trees
and shrubs shall be specified by botanical name
with at least 50 percent of screening trees and
shrubs being evergreen. Screening trees shall be
specified and planted at 24-inch box size or
larger and 8 feet height or taller. Screening
shrubs shall be specified and planted at 15-
gallon size or larger and 8 feet or taller.
B8: PLANTING TYPE AND SIZE: When required,
screening trees and shrubs shall be specified by
botanical name with at least 50 percent of
screening trees and shrubs being evergreen.
Screening trees shall be specified and planted at
24-inch box size or larger and 8 feet height or
taller. Screening shrubs shall be specified and
planted at 15-gallon size or larger and 8 feet or
taller.
Clarified text
Two Story
1.4C: PLANTING ADJACENT PUE’S: Where an
easement such as a PUE exist along an interior
lot line, trees are required to be planted on the
same side of the easement as the building, but
not within the easement.
B9: PLANTING ADJACENT PUE’S: Where an
easement such as a PUE exist along an interior
lot line, trees are required to be planted on the
same side of the easement as the building, but
not within the easement.
No change
Two Story
5.2B: SECOND FLOOR WINDOW PRIVACY: For
any window on an upper floor, facing an interior
lot line that is located less than 20 feet from a
side lot line or less than 30 feet from a rear lot
line, one of the following
shall be used: (a) permanent obscure
glazing, or (b) exterior mounted permanent
architectural privacy screens that block views
more than 70%, or (c) windows with sills above
5 feet from the finished floor level.
B10: SECOND FLOOR WINDOW PRIVACY: For any
window on an upper floor or in a stairway, facing
an interior lot line that is located less than 20
feet from a side or rear lot line, one of the
following shall be used: (a) permanent obscure
glazing to at least 5 feet from the finished
floor, or (b) exterior mounted permanent
architectural privacy screens that block views
more than 70%, or (c) windows with sills above 5
feet from the finished floor level. In a stairway,
the finished floor is the height of the landing.
This standard shall also apply to first-floor
windows less than 6 feet from a property line
where the finished floor height is 2 feet or more
above grade.
Simplified distance to 20 ft from any
interior lot line, combined stairway
requirements from 5.2C. Added privacy
requirements for first-floor windows in
specific situations consistent with
PAMC 18.09.
Two Story
5.3B: SECOND FLOOR OPERABLE WINDOWS
ALONG SIDE LOT LINES: Operable casement
windows on the upper level with a sill height less
than 5 feet above the finished floor and within
20 feet of an interior side lot line shall be hinged
so the windows open towards the public street.
Horizontal sliding windows shall not
B11: SECOND FLOOR OPERABLE WINDOWS
ALONG SIDE LOT LINES: Operable casement
windows on the upper level with a sill height less
than 5 feet above the finished floor and within
20 feet of an interior side lot line shall be hinged
so the windows open towards the public street.
Horizontal sliding windows shall not
No change
Item 10
Attachment B - SB 9 Objective Design
Standards Revision Crosswalk
Item 10: Staff Report Pg. 18 Packet Pg. 291 of 428
be permitted facing and within 20 feet of an
interior side lot line, unless the windowsill height
is at least 5 feet above the finish floor level.
be permitted facing and within 20 feet of an
interior side lot line, unless the windowsill height
is at least 5 feet above the finish floor level.
Applicability Current SB 9 Objective Design Standards Proposed SB 9 Objective Design Standards Type of Change
Two Story
Adjacent to
One Story
1.5C: SIDE DAYLIGHT PLANE CLEARANCE: Where
a home on an abutting lot across a side lot line
is single-story or has a second-floor area no
more than 500 square feet, the proposed
structure(s) shall maintain at least 2 feet
clearance from the second-floor roof edge or
wall parapet to the side daylight plane as
measured perpendicularly to the side daylight
plane.
C1: SIDE DAYLIGHT PLANE CLEARANCE: Where a
home on an abutting lot across a side lot line
is single-story or has a second-floor area no
more than 500 square feet, the side daylight
plane shall be measured from 8 ft above average
grade instead of 10 ft. In the case of an Urban
Lot Split, the daylight plane only applies to the
original property lines.
In flood zones, the average grade for
determining daylight plane is increased by one-
half of the increase in elevation required to
reach base flood elevations, up to a maximum
increase of 30 inches.
Simplified how this is measured. Allows
for flood zone height increase
consistent with PAMC 18.12
Two Story
Adjacent to
One Story
2.5A: SINGLE-STORY BUILDING FORMS: At least
one single-story building form (excluding
garages) with dimensions no greater than 16
feet in height, no less than 8 feet in depth, and
no less than 12 feet in width shall be placed on
each street facing building side. Location shall be
either: (a) fully forward of the second floor's
wall face, or (b) partially forward or aligned with
the second floor's wall face if the one-story form
is at a building corner.
C2: SINGLE-STORY BUILDING FORMS: Where a
home on an abutting lot across a side lot line
is single-story or has a second-floor area no
more than 500 square feet, all houses with
frontage on the street shall have either: (a) a
one-story building form (excluding garages) at
least 6 feet forward of the second-floor wall
face, and at least 10 feet wide; or (b) a
protruding porch or one-story roof overhang at
least 6 feet deep, and at least 8 feet wide.
Now only applies when adjacent to a
single-story house. Simplified text,
reduced minimum dimensions.
Existing Flag
and
Substandard
Lots
1.3E. SECOND FLOOR AREA ON FLAG LOTS AND
SUBSTANDARD LOTS: On flag lots (or similar lots
without street frontage) and/or substandard
lots, if the maximum allowed total floor area is
greater than 70 percent of the buildable lot area,
floor area may be placed on a second level. The
maximum second floor area allowed shall be the
area in excess of 70 percent of the buildable lot
area or 300 square feet, whichever is greater.
D1. SECOND FLOOR AREA ON FLAG LOTS AND
SUBSTANDARD LOTS: On lots that are flag lots
(or similar lots without street frontage) and/or
substandard lots prior to an Urban Lot Split, a
second floor shall only be allowed to facilitate
the minimum 800 sf unit size.
No change
Item 10
Attachment B - SB 9 Objective Design
Standards Revision Crosswalk
Item 10: Staff Report Pg. 19 Packet Pg. 292 of 428
Applicability Current SB 9 Objective Design Standards Proposed SB 9 Objective Design Standards Type of Change
Eichler
1.2C: EICHLER TRACT GARAGES: In mapped
Eichler Tracts, a garage or carport may
be located forward of the front facade plane of
the house so long as the garage or carport
is: (a) no more than 21 feet wide, (b) has a roof
pitch of 3:12 (slope of 3 vertical feet for every 12
horizontal feet) or less, and (c) has a maximum
height of no more than 12 feet above existing
grade.
E1: EICHLER TRACT GARAGES: In mapped Eichler
Tracts, a garage or carport may
be located forward of the front facade plane of
the house so long as the garage or carport
is: (a) no more than 21 feet wide, (b) has a roof
pitch of 3:12 (slope of 3 vertical feet for every 12
horizontal feet) or less, and (c) has a maximum
height of no more than 12 feet above existing
grade.
No change
Eichler
2.5B: Within mapped Eichler Tracts, garages may
serve as the form in Standard 2.5A, and no roof
pitch shall exceed 3:12. (See Standard 3.2C).
E2: EICHLER TRACT GARAGES: In mapped Eichler
Tracts, the garage may also count as the
required 1-story form in ODS A9.
Updated references
Eichler
2.1C: EICHLER TRACT ROOF HEIGHTS: In mapped
Eichler Tracts the maximum roof height shall not
exceed 22 feet, as measured from existing grade
to the roof surface for a pitched
roof, or 20 feet for a flat roof surface or parapet.
Properties in flood zones shall be permitted to
increase building height by one-half foot for
each foot that the base flood elevation exceeds
existing grade.
E3: EICHLER TRACT ROOF HEIGHTS: In mapped
Eichler Tracts the maximum roof height shall not
exceed 22 feet, as measured from existing grade
to the roof surface.
Properties in flood zones shall be permitted to
increase building height by one-half foot for
each foot that the base flood elevation exceeds
the existing grade.
Simplified text, more consistent with
A14.
Eichler
3.2C: ROOFLINES IN EICHLER TRACTS: In mapped
Eichler Tracts rooflines shall meet the
following: (a) roof pitches no more than
3:12, (b) gable, shed, butterfly or flat roof forms
(note: hip roofs with flat roofs at
eaves permitted; see Illustration 1D of the IR
guidelines for example),
and (c) 2-foot minimum overhangs at eave and
rake sides of roof forms for at least 50 percent of
roof edges.
E4: ROOFLINES IN EICHLER TRACTS: In mapped
Eichler Tracts rooflines shall meet the
following: (a) roof pitches no more than
3:12, (b) gable, shed, butterfly, or flat roof
forms, and (c) 2-foot minimum overhangs at
eave and rake sides of roof forms for at least 50
percent of roof edges.
Simplified text
Item 10
Attachment B - SB 9 Objective Design
Standards Revision Crosswalk
Item 10: Staff Report Pg. 20 Packet Pg. 293 of 428
Eichler
4.3D: EXTERIOR MATERIALS IN EICHLER TRACTS:
In mapped Eichler Tracts, exterior wall cladding
shall be vertical board channel or flush siding,
wood tongue and groove board siding, wood
nickel-gap siding, smooth fiber cement panels,
or metal panels. Board-form concrete, concrete
block, or stucco may be used as a secondary
material but collectively these materials shall not
account for more than 30 percent of all non-
glazed wall surfaces.
E5: EXTERIOR MATERIALS IN EICHLER TRACTS: In
mapped Eichler Tracts, exterior wall cladding
shall be vertical board channel or flush siding,
wood tongue, and groove board siding, wood
nickel-gap siding, smooth fiber cement panels,
or metal panels. Board-form concrete, concrete
block, or stucco may be used as a secondary
material, but collectively, these materials shall
not account for more than 30 percent of all non-
glazed wall surfaces.
No change
Eichler
4.4B: ENTRIES IN EICHLER TRACTS: In mapped
Eichler Tracts an entry porch projecting forward
of the front wall of the house shall not be used.
A recessed void at the facade or a courtyard
entry may be used in lieu of a porch. A covered
trellis used as a colonnade or a side porch that
does not project forward of the facade at the
entry would not be considered an entry porch.
E6: ENTRIES IN EICHLER TRACTS: In mapped
Eichler Tracts, a projecting entry porch shall not
be used. A covered trellis used as a colonnade or
a side porch that does not project forward of the
facade at the entry would not be considered an
entry porch.
Simplified text
Table 2: Objective Design Standards Proposed for Deletion
Applicability Current SB 9 Objective Design Standards Type of Change
Delete
1.2D: DUPLEX PARKING REQUIREMENT: In the case of a duplex, when
parking spaces are required, the parking space for each unit shall be a
covered parking space.
One covered space is required by PAMC 18.52 for all SB 9 units
regardless of configuration, unless exempted from parking
requirements by State Law.
Delete
1.3B: EICHLER TRACT SECOND FLOOR SIZE: Where a property is in a
mapped Eichler Tract, and not in a single-story overlay zone,
the maximum floor area of the second floor shall not exceed 25
percent of the total gross floor area on the lot.
This standard was originally changed to be the same as B2 (35% of the
floor area), and then eliminated because it was redundant with B2.
Delete
1.5A: CONTEXTUAL FRONT MASSING STEPBACK: Where a home on an
abutting lot across a side lot line is single-story or has a second-floor
area less than 500 square feet, a proposed structure shall have a one-
story building volume at least 15-foot wide and 15-foot deep at the
front side of the house set forward of any second-floor street facing
wall plane.
Intent of this standard is now in C2.
Item 10
Attachment B - SB 9 Objective Design
Standards Revision Crosswalk
Item 10: Staff Report Pg. 21 Packet Pg. 294 of 428
Delete
1.5B: CONTEXTUAL SIDE MASSING STEPBACK: Where a home on an
abutting lot across a side lot line is single-story or has a second-floor
area less than 500 square feet, each proposed structure located
within 20 feet of the side lot line shall step back the upper floor from
the lower floor along that side of the structure at least 7 feet for at
least 50 percent of the depth of the structure.
Feedback indicated the Daylight Plane was the preferred way to
regulate this.
Delete
1.5D: EICHLER TRACT SIDE DAYLIGHT PLANE CLEARANCE: In mapped
Eichler Tracts the clearance from any roof edge to the side daylight
plane as measured perpendicularly from the daylight plane shall be at
least 4 feet.
Determined 4 feet was overly restrictive, this scenario is now
regulated by C1.
Delete
2.1A: UPPER FLOOR FRONT FAÇADE AREA: Where an abutting lot
across a side lot line has a single-story home or home with no more
than 500 square feet on the second floor, the front facade's visible
wall area on the upper floor shall be no greater than 50 percent of the
front facade's visible wall area on the first floor. Wall area includes
the area defined by porches, windows, and wall surfaces under
gables. On corner lots, the front facade shall be the facade at the
shorter frontage.
The 2nd floor façade width would be sufficiently regulated by the
daylight plane. This was also very difficult to interpret and calculate.
Delete
2.2A: FIRST FLOOR LEVEL: The finished first floor level shall not be
more than 18 inches above existing grade. In Eichler Tracts, the
finished first floor level shall not be more than 12 inches above
existing grade. In a flood zone, the first-floor level may be set at the
minimum allowed above grade to meet code requirements. For a lot
removed from the flood zone due to on-site grading, the
measurement shall be taken from revised grade.
This is sufficiently addressed by the other height restrictions (A13, B3,
B4), and was overly strict in flood zones.
Delete
2.2B: FLOOR-TO-FLOOR HEIGHT: The height from the first finished
floor to the second finished floor shall not exceed 10'-6”.
Feedback indicated regulating interior height was overly restrictive.
The exterior height limits (A14, B3, B4) are sufficient to not need to
regulate interior height.
Delete
2.2C: SECOND FLOOR WALL PLATE HEIGHT: The wall plate height (i.e.,
interior wall height at exterior wall) on the second floor shall not
exceed 9 feet for roofs with pitches 3:12 or lower; 8'-6" for roofs with
pitches greater than 3:12 up to 9:12; and 8 feet for roofs with pitches
9:12 or greater.
The exterior height limits are sufficient to not need to regulate
interior height.
Delete 2.2D: PARAPET HEIGHT: Parapets shall not exceed 1 foot above the
roof surface over second floor roofs.
The overall height limits are sufficient.
Delete 2.6A: ATTIC HEIGHT: Unused attic spaces shall not exceed 5 feet in
height.
The Zoning Code FAR and height regulations already discourage this.
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2.6B: EXTERIOR WALL HEIGHT: No exterior wall shall exceed 22 feet
in height as measured from existing grade to the eave or parapet.
Portions of walls under rakes such as at gables or shed roof forms
may exceed this height.
Feedback indicated the 22ft felt arbitrary, and other standards such
as C1, B3, and the daylight plane sufficiently regulate this
Delete 3.1B: ENTRY HEIGHT: Exterior entry forms shall not exceed 12 feet in
height as measured from existing grade.
The Zoning Code FAR and height regulations already discourage this.
Delete
3.2A: ROOF FORM VARIATION: No more than two types of roof forms
shall be used (examples of two forms are hip and gable roofs or shed
and flat roofs).
Feedback indicated this was overly restrictive, and did not sufficiently
account for entry accents or similar.
Delete 3.2B: ROOF PITCH VARIATION: No more than two roof pitches shall be
used (e.g., 4:12 and 12:12; 6:12 and flat).
Feedback indicated this was overly restrictive, and did not sufficiently
account for entry accents or similar.
Delete
3.3A: INCOMPLETE ROOF FORMS: Truncated hip and gable roof forms
shall not be permitted at second floor roofs on two-story structures
or roofs at single story structures. Note: A truncated roof form is
where the roof planes do not extend to a ridgeline; rather
they terminate with a flat roof or roof well.
Feedback indicated that truncated roof forms can be a useful tool in
reducing overall height. Typically, this is not visible from the public
right of way. It also unnecessarily restricts historically recognized
forms such as Dutch gables.
Delete
3.5A: CONTEXTUAL ROOF PITCH: On properties adjacent to single
story homes along either interior side lot line, roof pitches on new
two-story buildings shall be 6:12 or lower.
Feedback indicated this was unnecessary considering other eave and
roof height restrictions (A14, B3, B4)
Delete
4.2A: WINDOW ALIGNMENT: Windows on two-story wall planes that
face a street shall be aligned vertically unless there is a change in
exterior materials from the lower floor to the upper floor.
Feedback indicated this was overly restrictive, “aligned vertically” was
also unclear to interpret.
Delete
4.2B: FAÇADE ELEMENT SPACING: Focal points such as porches,
large/featured windows, and bay windows shall be spaced at least 5
feet horizontally apart from each other when placed on the same
level/floor.
Feedback indicated this was overly restrictive, particularly for smaller
units. It also had unintended limitations, such as preventing “large
windows” from being under a porch.
Delete
5.1A: PRIVACY DIAGRAM: Site Privacy Diagram must show the
proposed second-floor plan including windows, major on-site
vegetation, and all elements on the neighboring property within 25
feet of the subject property line. For adjacent sites show major
vegetation, building footprints, windows (indicate size and location),
and patios within 25 feet of the property lines shall be provided in the
project plan set.
This is a submittal checklist requirement, not a Design Standard.
Delete
5.2A: BEDROOM WINDOW LOCATION: Organize the second-floor plan
so at least one bedroom has its largest/egress window facing the
front lot line. On corner lots, at least one bedroom’s largest/egress
window shall also face the street side lot line.
The privacy requirements (B10, B11) already encourage this.
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5.2C: STAIR WINDOW PRIVACY: Stair windows facing interior side lot
lines within 20 feet of the lot line shall have permanent obscure
glazing or exterior mounted permanent architectural privacy
screens to at least 5 feet above the landing.
Combined into standard B10.
Delete
5.2D: PRIVACY LANDSCAPE: Privacy screening landscape shall
be located to align with proposed second floor windows across side
and rear lot lines and between windows at facing units on a single
property. Privacy screening landscape shall be evergreen and per size
and planting standards shown in Standard 1.4.
Combined into standard B7.
Delete
5.3A: SECOND FLOOR WINDOW SIZE ALONG SIDE LOT LINES: Any
upper-level window or window grouping located less than 20
feet from a side interior lot line (measured perpendicularly) shall not
have more than 30 square feet of glazing.
The privacy requirements (B10, B11) already encourage this, and/or
sufficiently mitigate privacy for larger windows.
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City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Administrative Services
Meeting Date: February 12, 2024
Report #:2311-2233
TITLE
Discuss the FY 2024 Mid-Year Budget Review and Approve 1) FY 2024 Budget Amendments in
Various Funds, and 2) Amendments to the FY 2024 Table of Organization to add 1.00 Full Time
Equivalent (FTE) Position. CEQA Status – Not a Project.
RECOMMENDATION
Staff recommends that the City Council review, discuss, and approve:
1) Amendments to the Fiscal Year 2024 Budget Appropriation for various funds and various
capital projects, as identified in Attachment A, Exhibits 1 and 2 (requires a supermajority, 2/3
approval); and
2) Amend the FY 2024 Table of Organization in Attachment B consistent with the budget
amendments in Attachment A, adding 1.00 full time position.
EXECUTIVE SUMMARY
This report provides an extensive update on the City’s financial status as of December 31, 2023.
Included in this report are:
1) Recommended budget adjustments to FY 2024 that reflect urgent / high priority
fiscal needs, revenue supported program activities, and technical adjustments,
2) Recommended changes in staffing levels in FY 2024 adding 2.00 positions and
deleting 1.00 position,
3) Updated information on the City’s financial position and outlook in FY 2024 including
positioning for the upcoming FY 2025 budget process, and
4) FY 2024 2nd quarter financial status updates (Attachment C).
The next significant financial planning and budget discussions will be the review of the FY 2025
proposed operating and capital budgets and municipal fee schedule (May 2024 – June 2024)
and recommended utility rate updates (March 2024 – June 2024).
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This report addresses the City Council referral adopted with the FY 2024 budget to revisit key
Council priority investments, makes recommended funding adjustments based on activities
through December 2023, and proposes technical adjustments. If approved, these actions will
authorize investments for immediate needs and key priority areas to be addressed in FY 2024
(rather than waiting for the FY 2025 budget process) and position the Council for its FY 2025
budget deliberations in the coming months with the most current financial projections.
BACKGROUND
1 for Council approval and the First Quarter (Q1) FY 2024
Financial Report (Staff Report 2307-1774)2 as an informational report. Staff reported higher
annual earnings for general fund revenues in FY 2023 as compared to the budget primarily due
to a faster recovery of major tax revenues in the last two quarters of the fiscal year. This
recovery trend continued in the first and second quarter of FY 2024, with several major tax
1 January 16, 2024 City Council Meeting: FY 2023 Annual Comprehensive Financial Report
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13566
2 January 22, 2024 City Council Meeting: FY 2024 First Quarter Financial Status Report
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revenue categories tracking to exceed budgeted levels; actual year end results may vary due to
continued economic uncertainty. Staff is recommending that the City Council recognize this
additional funding as part of this report and anticipates using this additional one-time funding
and reserves to support near-term funding priorities and bridge projected shortfalls as part of
the FY 2025 budget development. Longer term, staff expects that economic recovery and a
more diverse revenue base will help to stabilize the fiscal outlook.
3, and consistent with the
projections in the FY 2024 Adopted Budget, deficits are reflected in the near term due to
ongoing resources added to support priority initiatives and projected economic stagnation.
Ongoing financial stability will require continued prioritization of spending and utilization of
one-time surplus funding and the Uncertainty Reserve to address short term deficits in the next
few years.
ANALYSIS
3 January 22, 2024 City Council Meeting: 2025-2034 Long Range Financial Forecast
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b. Internal Service Funds
c. Special Revenue Funds
d. Enterprise Funds
e. Capital Funds
2) Preliminary General Fund Q2 Financial Status & public safety overtime (Attachments
C & D)
3) Timeline and Next Steps
The following is an overview of the status for the General Fund, Enterprise Funds, and other
funds including recommended budget adjustments as they pertain to the City’s FY 2024
Operating and Capital Budgets.
1.a. General Fund
1.a.i. Mid-Year Budget Review Balancing Strategy Summary
The following table outlines the major drivers of the General Fund mid-year recommended
balancing strategy to offset the collective impact of a few key activities:
- Completion of FY 2023 year-end financial transactions which ended with funding of $3.4
million above the 20% Council adopted target level in the Budget Stabilization Reserve
as discussed in the FY 2023 Annual Comprehensive Financial Report (ACFR).
- Alignment with current FY 2024 estimated major tax revenue projections as discuss in
the FY 2025-2034 Long Range Financial Forecast (LRFF).
- Support to continue Council priority investments as referred during the FY 2024
Adopted Budget process and routing operations.
This report continues to work to balance the immediate needs with the mid- and longer-term
forecast needs, using one-time funds as a key tool in bridging uneven economic trends. There
are potential risks and benefits associated with continuing this balancing strategy that should
be considered when looking beyond FY 2024. The risks would further reduce the City’s ability to
fund the current level of services over the next several years, while the benefits could offset
costs for a longer period or even increase available funding sources. These are discussed further
in the Proposed Balancing Solutions section of this report.
Table 1: General Fund Mid-Year Adjustments and Balancing Solutions
Summary of General Fund Adjustments
Net $ Impact
(Cost)/Benefit
FY 2024 Council Budget Referral and Priorities Investments
Rental Registry Program $(0.2) M
California Avenue Car Free Streets $(0.1) M
Parklet Prototypes $(0.1) M
Fleet Electrification $(0.1) M
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Summary of General Fund Adjustments
Net $ Impact
(Cost)/Benefit
Youth Mental Health $(33,000)
Subtotal FY 2024 Priority Investments:$(0.6) M
Recommended Funding:
Planning and Transportation Services $(0.2) M
Public Safety Services $(0.1) M
Subtotal Recommending Funding:$(0.3) M
Technical Adjustments:
Major Tax Revenues & Investment Earnings
(Property Tax, Sales Tax, Utility Users Tax, Transient Occupancy Tax, Documentary
Transfer Tax)
$3.6 M
Utility Equity Transfer FY 2023 True-up $0.3 M
Utility Equity Transfer Case (Net-Neutral Action)
($11.2M for first round of settlement, offset by $11.2M from Reserve)
$0.0 M
Supplemental Pension 115 Trust Contribution
($1.7M of the excess FY23 Budget Stabilization Reserve)
$(1.7) M
Capital Improvement Funding
($1.7M of the excess FY23 Budget Stabilization Reserve)
$(1.7) M
El Camino Real Ballpark/Lot 37 FY 2023 Rent $(0.2) M
Golf Course Services Revenue FY 2023 True-up $(0.1) M
Subtotal Technical Adjustments:$0.2 M
Use of Uncertainty Reserve
(Uncertainty Reserve remains at $9.5M)
$0.6 M
Use of Budget Stabilization Reserve (BSR)
(BSR remains at 21.2% and $3.3 M above the 20.0% target level)
$0.1 M
Total Net Impact General Fund Mid-Year Adjustments $0.0 M
1.a.ii. Recommended Amendments to the FY 2024 Adopted Budget
This report includes budget adjustments to 1) make key investments in alignment with deferred
investments identified by Council through its FY 2024 Budget and priorities, 2) recommended
funding for grants, urgent or timely needs, or 3) technical adjustments.
Major changes are recommended as directed by the City Council and/or recommended by staff
are below, and all transactions can be found in greater detail in Attachment A. It should be
noted that recommended budget adjustments have been prorated for the remainder of the
fiscal year where appropriate.
FY 2024 Council Budget Referral and Priorities Investments
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As part of the FY 2024 budget process, the Finance Committee and City Council referred some
priority investments to be reviewed during the FY 2024 Mid-Year Budget Review. This section
addresses each of these and the status and investments in alignment with the Council priority
objectives:
•Fleet Electrification (PWD): $1,350,000 is requested to allow for nine additional FY 2024
vehicle replacements to be all-electric: 3 Ford F-150s, 2 GMC 6yrd Dump Trucks, 2 Ford
Ranger Small Pickup Trucks, and 2 Chevy Blazers. The cost is spread across five funds
(General, Electric, Gas, Wastewater Collection, and Water) in the Community Services,
Planning and Development Services, and Utilities Departments, with $130,000 in the
General Fund. Fleet electrification is ongoing, and staff will return to Council with
recommendations for additional replacement of vehicles with electric models as part of the
FY 2025 Budget.
•Sea Level Rise (PWD): No additional funding is requested yet. Staff is in the process of
evaluating future steps and investments to better inform the request for additional funding
in the context of correspondence with the Army Corps of Engineers about the South San
Francisco Bay Shoreline Phase II Feasibility Study. Work continues; however, additional
funding is likely to be requested as part of the FY 2025 budget process rather than at this
time.
•Youth Mental Health (CSD): This brings forward $30,000 in funding to host an event with the
goal of nurturing support and sharing knowledge on topics relevant to youth mental health.
In pursuit of this goal, the Community Services Department will actively engage in
partnerships with Youth Community Service, Project Safety Net, Allcove, and other partners
to identify specific target audiences and refine event formats. Partnership with the
Department of Transportation to fund rides through Palo Alto Link ($3,000) for youth
attending this event and other locations to access programs and services conducive to
enhancing mental health is also included. This is an incremental step and reflects expected
activity during the remaining months of FY 2024.
•Eucalyptus Tree Removal (CSD/OES): No additional funding is requested at this time as staff
has pursued a grant to support funding for this project to increase wildfire safety.
•Unhoused Resident Services (CMO): No additional funding is requested as initially, staff
expected to develop a plan for better coordination among homeless individuals and
housing/services. However, most services are already managed by the County through the
Palo Alto-supported Community Plan to End Homelessness4. To avoid duplication, the focus
shifted to strengthening services through improved coordination and launching a pilot
outreach worker program. Additionally, staff expects to propose a new Priority Objective
4 https://housingtoolkit.sccgov.org/take-action/santa-clara-county-community-plan-end-homelessness-2020-2025
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for 2024 focused on increasing capacity, coordination and effectiveness relating to housing
and services for the unhoused in Palo Alto.
•Regulate Short Term Rentals (PDS): No additional funding has been brought forward at this
time as staff continues to not have the capacity to take on this objective at this time.
Resources, as discussed later, are added for the establishment of a new Rental Registry
Program prioritizing that program and other Council Priorities at this time.
In addition to those items referred for consideration as part of this Mid-Year review, limited
investment in Council priorities is recommended including:
•California Avenue Car Free Streets Project Management (CMO): Funding of $85,000 is
recommended for provisional staff for the oversight of the California Avenue car free street
efforts. Recognizing the critical and focused effort needed to support this area, this
resource will provide a more flexible means to engage on this multidisciplinary effort going
forward with the City's consultant, Urban Field Studio, stakeholders, and City staff.
•Rental Registry Program (PDS): A new Senior Planner position and contractual resources of
$228,000 are recommended to be added in alignment with the Council priority objecting
and prior council direction to establish a Rental Registry Program.
•Parklet Prototypes (PDS): This action appropriates $84,000 for the estimated costs of
development of up to three parklet prototype concepts. This uses one of the City's on-call
contracts with Urban Planning Partners, Inc. and will include long range planning,
application processing, and environmental review services.
Recommended Additional Funding
In limited areas staff recommends appropriation of additional funding to continue operations
and support needed investment. Key investments are summarized here by service delivery
area:
•Planning and Transportation Services: $214,000 revenue, $461,000 expense
For the Office of Transportation, this report recommends the recognition of Measure B
grant revenue in the amount of $213,725, along with an increase in contract services by the
same amount. Staff will use the grant funding to hire a consultant to manage the Safe
Routes to School Program. Palo Alto Transportation Management Authority (PATMA) has
requested additional funding of $84,000 to maintain existing service levels, but an increase
of $42,000 is recommended to support continued services. Staff expects to reassess funding
needs in preparation for FY 2025. Although the current contract amount is $200,000,
PATMA has identified that the true cost of current services is $330,000 per year and they
have utilized surplus funding received in prior years to cover costs. Those surplus funds
have been exhausted. PATMA will need to evaluate staff time and outreach at hotels,
restaurants, and shops in the City.
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For the Planning and Development Services Department, this report includes
recommendations to delete an Assistant Chief Building Official position and add a Planning
Division Manager for the Development Center and planning special projects to better align
with the goals and needs of improving the Development Center and planning operations.
Funding totaling $163,000 is also recommended to continue the Department’s cost
allocation fee study, update development impact fee calculations, and fund a new electric
vehicle for code enforcement staffing.
•Public Safety Services: $65,000 expense
Ongoing funding of $50,000 for the Fire Department will be used for first responder
equipment maintenance and training supplies. This funding addresses maintenance and
repair costs for personal protective equipment (PPE), equipment tracking software, and
supplied air respirator machines. Ongoing funding of $15,000 will be used to cover cost
increases for training drill supplies such as lumber as well as increases due to staff turnover
and increased training needs.
Technical Adjustments and Previous Council Direction
This report includes actions that are technical in nature and are needed to align budget with
current trends, and previous direction approved by the Council. Major changes are
recommended as directed by the City Council and/or recommended by staff are below, and all
transactions can be found in greater detail in Attachment A.
•Major Tax Revenue ($3.3 million additional revenue; ($300,000) expense reduction): Staff
evaluated departmental and major tax revenue through Q2 and recommends actions that
result in a net $3.6 million increase. As noted in the Q1 Financial Report, major tax revenue
categories are trending higher than budgeted in FY 2024, and a $3.3 million increase is
recommended to adjust Sales Tax ($1.6 million increase), Utility Users Tax (UUT) ($1.2
million increase), Investment Earnings ($1.1 million increase), and Property Tax ($0.8 million
increase), partially offset by Transient Occupancy Tax (TOT) ($1.3 million decrease) and
Documentary Transfer Tax (DTT) ($0.1 million decrease) based on trends experienced in the
first half of FY 2024. Since a portion of TOT revenue has been dedicated to fund capital
improvements, per Council direction, the reduced TOT revenue estimates warrant a
reduction in the transfer from the General Fund to the Capital Improvement Fund ($0.3
million decrease).
•Utility Equity Transfer FY 2023 True-up ($293,000 additional revenue): This action increases
the equity transfer to the General Fund by $293,000 with additional funding from the Gas
Fund ($508,000) partially offset by reduced funding from the Electric Fund ($215,000) in FY
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2024. This action is in alignment with the FY 2023 Annual Comprehensive Financial Report
(ACFR) as of June 30, 2023 (Staff Report 2311-2230)5 .
•Utility Transfer Litigation (Equity Transfer) Reserve (Net Neutral Expense Adjustment): This
action implements the first set of refunds issued to class members as a result of the Green
v. City of Palo Alto (Santa Clara Superior Court, Case No. 1-16-CV-300760) settlement. Use
of $11.2 million for this first refund leave a remaining reserve balance of $6.3 million for
planned future settlement payment needs.
•Uncertainty Reserve: Use of $0.6 million from the FY 2024 Adopted Budget level of $10.1
million is half of the $1.0 million set aside as part of the FY 2024 budget process for
additional priority investments. $9.5 million remains in the reserve; approximately $6.0
million of the reserve will be necessary to provide one-time funding for the FY 2025
forecasted deficit outlined in the City's 2025-3034 Long Range Financial Forecast.
•Supplemental Pension Trust Contribution ($1.7 million expense): This adjustment adds a $1.7
million transfer to the General Benefits Fund for an additional contribution to the City’s
Section 115 Pension Trust. This action was approved by the City Council in the FY 2023
Annual Comprehensive Financial Report (ACFR) for BSR exceeding target levels of 18.5%,
reflects General Fund contributions only, and is consistent with the City’s Retiree Benefits
Funding Policy. Staff will include adjustments for proportional contributions from other
(non-General Fund) funds as part of the FY 2024 year-end or FY 2025 proposed process
consistent with past practice and policy guidelines.
•Capital Improvement Funding ($1.7 million expense): This adjustment formalizes City
Council actions to allocate $1.7 million resulting from FY 2023 year-end excess BSR, bringing
the total base General Fund transfer to the Capital Improvement Fund to $12.5 million in FY
2024 and is consistent with the Council policy guiding use of surplus funds. This funding will
increase the fund balance in the Capital Improvement Fund for use in the development of
the upcoming 2025-2029 five-year Capital Improvement Plan.
•El Camino Real Ballpark/Lot 37 FY 2023 Rent ($221,000 expense): This action will allow the
payment of the Fiscal Year 2023 rent due to Stanford for the El Camino Real Ballpark, also
referred to as Lot 37. The FY 2023 rent was withheld by the City while a minor error on the
rental invoice was resolved with Stanford. Agreement was reached in FY 2024; however, the
remaining funding in FY 2023 was inadvertently omitted from the reappropriation process
to move funds into FY 2024.
•Golf Course Services Revenue FY 2023 True-up ($51,000 expense): This adjustment increases
contract expenditure by $51,000 for City Golf Course operations owed to the management
company, OB Sports. The terms of agreement include a revenue share equivalent to 20% of
5 January 16, 2024 City Council Meeting: FY 2023 Annual Comprehensive Financial Report
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13566
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the calculated FY 2023 difference between Gross Revenue and Target Revenue for that
fiscal year.
1.a.iii. Position/Table of Organization Changes Summary
Two position actions are recommended in this report, both in the Planning and Development
Services Department. They include the addition of 1.00 Senior Planner to facilitate the rental
registry program and the addition of 1.00 Planning Division Manager and deletion of 1.00
Assistant Chief Building Official. This will increase full-time staffing levels in the General Fund
from the FY 2024 adopted level of 586.06 to 587.06. Although staffing challenges remain
citywide, staff is focusing on recruitments of current vacant position and all others new staffing
requests will be addressed through the FY 2025 annual budget process. This reflects movement
towards the City’s practices prior to the pandemic in alignment with best budgeting practices.
Staff will continue to use appropriate temporary staffing measures, such as overstrength
positions overseen by the City Manager, to proactively address time sensitive staffing needs
and maintain high quality services for residents.
1.a.iv. City’s Financial Position in FY 2024 and FY 2025
With any forecast and adjustments based on projections, there are inherent risks and benefits.
Staff seeks to position the City in order to provide organizational stability, while acknowledging
the service and resource needs, capacity to implement, and project pipeline to continue to
reinvest at a pace the organization can support.
Should the Council approve the actions recommended in this report, there will be three (3)
reserves in the General Fund with the following status:
1. Reserve: Utility Transfer Litigation (Equity Transfer) $6.3 million, from $17.5 million
Planned to be used for the continued compliance with the Green v. City of Palo Alto (Santa
Clara Superior Court, Case No. 1-16-CV-300760) settlement
2. Budget Uncertainty Reserve $9.5 million, from $10.1 million
Planned to be used for the FY 2025 projected deficit of $6.0 million with remaining funds to
be discussed and planned uses identified as part of the FY 2025 budget process. This
reserve was established to help the City manage the immediate term recovery and
uncertainty, ensuring that the City has a stable financial plan to address current service
levels while investing in core priority service areas. As a reminder the City also is facing a
forecasted deficit in FY 2026 of $5.4 million too.
3. Budget Stabilization Reserve estimated to be $57.2 million, which is above the adopted
20% level of $53.9 million by $3.3 million.
The City’s Budget Stabilization Reserve (BSR) serves as the primary General Fund reserve
and is maintained at a level between 15% and 20% of General Fund operating expenses in
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any given year. This is both intended for catastrophic events as well as a repository for
unspent operating funds at year-end used to fund one-time unexpected needs that arise
outside of the regular budget preparation process. Prudent financial management practices
dictate that the BSR not be used to fund or solve on-going, recurring financial needs.
Alternatively, Council could amend this and appropriate the excess BSR of $3.3 million to the
Uncertainty Reserve. This would consolidate one-time funding to support FY 2025 and
immediate outer years and Council priority investments in one location. If this was done, the
Uncertainty Reserve would be $12.8 million, of which $6.0 million is planned to resolve the FY
2025 deficit. Remaining funds could be used for the FY 2026 deficit of $5.4 million and/or
investing in Council priorities.
Potential risks and benefits associated with this balancing solution that should be considered
when looking beyond FY 2024. The risks would further reduce the City’s ability to fund the
current level of services over the next several years, while the benefits could offset costs for a
longer period of time or even increase available funding sources.
Risks include but are not limited to the unresolved deficit beyond FY 2025 - estimated deficits in
FY 2026 and FY 2027 (approximately $8.8 million in total) need to be resolved; labor contracts
will be renegotiated around the time of developing the FY 2026 budget; economic recession or
more sever stagnation of economic growth would cause increased deficits over the next several
years.
Benefits include but are not limited to the reserve levels to bridge FY 2025 services for at least
one more year; revenue and expense estimates may materialize additional available funds; the
City’s diligence in funding long term liabilities such as pension have the potential to fund annual
pension and retiree healthcare costs to provide short-term relief; a more robust economic
recovery.
1.b. Internal Service Funds – Mid-Year Budget Adjustments
Mid-Year actions recommended in these funds are related to technical adjustments to align the
City’s contributions to the 115 Pension Trust Fund with Council policy, increase funding for
higher estimated liability costs, and provide funding for the Council priority for electrification of
the City’s fleet. See Attachment A, Exhibit 1 for further information regarding the
recommended changes in the Internal Service Funds.
•General Benefits Fund: Supplemental Pension Trust Contribution of $5.7 million in
additional contributions to the City’s Section 115 Pension Trust consistent with the funding
policies outlined in the City’s Retiree Benefits Funding Policy. This brings total principal
contributions to $73.3 million ($47.5 million from the General Fund) since inception in 2017.
Included in this adjustment are true-up actions for FY 2023 excess BSR funds of $1.7 million
and $1.2 million in FY 2023 year-end pension savings and $2.8 million in non-General Fund
funds proportional contributions to “catch-up” to prior year General Fund contributions.
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•General Liabilities Fund: Supplemental insurance funding of $355,000 supports increasing
insurance premium costs. Specifically, $196,000 in expense for umbrella excess liability
insurance and $159,000 for property loss insurance. This brings FY 2024 funding for
umbrella excess liability insurance from $4.2 million to $4.4 million and property loss
insurance from $0.8 million to $0.9 million.
•Vehicle Replacement and Maintenance Fund: Fleet Electrification adjustment adds $1.3
million in expense and revenue to allow for 9 additional FY 2024 vehicle replacements to be
all-electric: 3 Ford F-150s, 2 GMC 6yrd Dump Trucks, 2 Ford Ranger Small Pickup Trucks, and
2 Chevy Blazers. The cost of $1.3 million is spread across 5 funds (General Fund, Electric
Fund, Gas Fund, Wastewater Collection Fund, and Water Fund) in the Community Services,
Planning and Development Services, and Utilities Departments, with $130,000 in the
General Fund. Fleet electrification is ongoing, and staff will return to Council with
recommendations for additional replacement of vehicles with electric models as part of the
FY 2025 Budget. A new vehicle to support a new Code Enforcement Supervisor position
added in FY 2024 in the amount of $64,000 for a new electric Chevy Blazer supporting daily
off-site duties and sustainability goals is also added.
1.c. Special Revenue Funds – Mid-Year Budget Adjustments
•Gas Tax Fund: The City receives revenues from California’s Highway Users Tax Account
(HUTA) and the Road Maintenance and Rehabilitation Account (RMRA SB1). In January, the
Department of Finance’s updates for estimated revenues from these accounts indicated
that receipts would be lower than what is currently in the City’s budget. To align with the
new estimates, gas tax revenues will be reduced by $16,194, and transfers to the Capital
Improvement Fund for the Street Maintenance project (PE-86070) will be reduced by the
same amount.
•Community Development Block Grant: A technical adjustment is needed to align the FY 2024
Budget with the FY 2023-24 CDBG Action Plan by recognizing a $211,673 transfer from
CDBG to the Capital Improvement Fund for the Sidewalk Repairs project (PO-89003).
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Item 11: Staff Report Pg. 12 Packet Pg. 309 of 428
1.d. Enterprise Funds – Mid-Year Budget Adjustments
Mid-year actions being recommended in these funds are primarily related to the alignment of
the Utilities Department budgets with current market conditions for revenues and expenses
related to the purchase of commodities and the operation of utilities. The actions
recommended for FY 2024 mid-year will align revenues and expenses for interfund transfers for
the Gas and Electric Fund Utilities Equity Transfers; Electric Fund revenue projections and
commodity costs; and shared costs for Water, Gas, Wastewater Utility GIS Data project WS-
02014. See Attachment A, Exhibits 1 and 2 for further information regarding the recommended
changes in the Enterprise Funds.
Capital Budget – Mid-Year Budget Adjustments
Several Capital Improvement Program projects require adjustments in FY 2024. For a detailed
view of all project adjustments by Fund, see Attachment A, Exhibit 2.
•All remaining funding in the Automated External Defibrillator Replacement (FD-21000) and
Extrication Tool Replacement (FD-22000) projects will be removed because both projects
have been completed. The remaining amounts are $38,000 of revenue in FD-21000, and
$20,845 of revenue and $79,153 of appropriation in FD-22000.
•As approved by the Valley Transportation Agency (VTA), Measure B revenue will be
reallocated from the Railroad Grade Separation and Safety Improvements project (PL-
17001) to the Traffic Signal and Intelligent Transportation Systems (PL-05030) and
Transportation and Parking Improvements (PL-12000) projects in the amounts of $701,500
and $233,833, respectively.
•Align the Street Maintenance project (PE-86070) with reduced gas tax revenue estimates
discussed in the Gas Tax Fund section above with a reduction of $16,194.
•Align the Roth Building Rehabilitation project (PF-23001) with County grants awarded for
the building’s windows and roof in the amount of $387,590, as well as $200,000 of interest
earnings on Transfer Development Rights (TDR) funding reserved for this project in the
Capital Improvement Fund.
•$211,673 of appropriation and CDBG grant revenue will be added to the Sidewalk Repairs
project (PO-89003) to align the FY 2024 budget with the FY 2023-24 CDBG Annual Action
Plan.
•Nine projects require technical adjustments to align FY 2024 budgets with FY 2023 actual
financial activity, with no changes to project schedules or scopes.
Attachments C and D provide summary information on actual preliminary financial activity
through December 2023. These actuals have been factored into the analysis and projections
used in the development of this Mid-Year Budget Review. Overall, they remain consistent with
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Item 11: Staff Report Pg. 13 Packet Pg. 310 of 428
trends seen in the first quarter of the fiscal year. Staff will continue to monitor trends and
update assumptions as part of the FY 2025 budget process as necessary.
3) Timeline and Next Steps
➢Utility Advisory Commission (UAC) and Finance Committee Meetings – Five Year Utility
Financial Plans and FY 2025 Rate Recommendations
➢Release of the FY 2025 Proposed Operating and Capital Budgets & Municipal Fee
Changes
➢Public Budget Hearings on the Proposed Budgets with Finance Committee, including
Utility Rates, Municipal Fees, and the 5-Year Capital Improvement Plan
➢FY 2024 Third Quarter (Q3) Fiscal Analysis Report (information)
➢FY 2025 Operating and Capital Budget Adoption
➢FY 2025 Municipal Fee Adoption
➢FY 2025 Utility Rates adoption
FISCAL/RESOURCE IMPACT
Item 11
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Item 11: Staff Report Pg. 14 Packet Pg. 311 of 428
FY 2025 deficit. Remaining funds could be used for the FY 2026 deficit of $5.4 million and/or
investing in Council priorities.
Table 2: Resource Impact (Non-General Fund)
Fund Type Fund Amount
STAKEHOLDER ENGAGEMENT
Item 11
Item 11 Staff Report
Item 11: Staff Report Pg. 15 Packet Pg. 312 of 428
ENVIRONMENTAL REVIEW
ATTACHMENTS
APPROVED BY:
Item 11
Item 11 Staff Report
Item 11: Staff Report Pg. 16 Packet Pg. 313 of 428
Revenues
Department FTE Adjustment Adjustment
GENERAL FUND (102)
Administrative
Services
Technical Adjust: Business Tax Revenue/Business Registry Administration Contract Funding
This action increases expenses to support the business tax and registry program administration contract, as
scheduled to be presented to the City Council in Staff Report 2401‐2481 on February 5, 2024, and recognizes
sufficient Measure K revenue to offset this expense. This contract will provide administration, collection, and
enforcement services for the City’s business tax and business registry certificate program. (Ongoing costs: $0)
‐ 41,000$ 41,000$
City Manager's
Office
FY 2024 Budget Council Priority: California Avenue Car Free Streets Project Management
This action increases the appropriation for salaries and benefits to fund the equivalent of 0.60 Assistant to the
City Manager provisional limited term position to support the oversight of the California Avenue car free street
efforts. This work is currently being done through consultant services; however, as staff this resource will
provide a more flexible means to engage on this multidisciplinary effort going forward with the City's
consultant, Urban Field Studio, stakeholders, and City staff. (Ongoing costs: $170,000 FY 2025 only)
‐ ‐$ 85,000$
Community
Services
FY 2024 Budget Council Priority: Fleet Electrification
This action allows for a vehicle in the Community Services Department to be replaced by an all‐electric Ford F‐
150. As part of the FY 2024 Budget Adoption, select priorities were identified to be revisited at Mid‐Year. This
action reflects a recommended continued transition to electric vehicles to allocate an additional $1.3 million
across various funds to allow for additional FY 2024 vehicle replacements to be all‐electric. (Ongoing costs: $0)
‐ ‐$ 80,000$
Community
Services
Technical Adjust: Golf Course Green Fee Contract Services Alignment
This action increases expenditures related to City Golf Course operations. Contract expenditures are increased
by $51,000 to reflect amounts owed to the service provider, OB Sports, per the compensation terms of the
agreement with the City. The calculated FY 2023 revenue share, or 20% of the difference between Gross
Revenue and Target Revenue for that fiscal year is reflected in this true‐up adjustment. (Ongoing costs: $0)
‐ ‐$ 51,000$
Community
Services
Recommended Funding: Charges for Services Revenue/Children and Teen Studio Art Class Funding
This action provides $50,000 in contract dollars for the Art Center's Kids and Teens Studio program offset by
$50,000 in additional registration revenue. This increase will allow for increased demand for spring classes and
summer camps, provide increases in hourly pay for contract instructors, and remain competitive in the
marketplace. (Ongoing costs: $0)
‐ 50,000$ 50,000$
Community
Services
FY 2024 Budget Council Priority: Youth Mental Health Event Funding
This action allows for a Youth Mental Health program to support and plan an event with community partners
focused on youth mental health and empowerment. As part of the FY 2024 Budget Adoption, select priorities
were identified to be revisited at Mid‐Year. The $0.2 million estimated for these services has been updated
due to event dates shifting from FY24 to FY25, and recalculated costs to administer these events. Additional
funding ($3,000) is recommended in the Office of Transportation to fund rides through PA Link for youth
attending this and other vital locations to access programs and services conducive to enhancing mental health.
(Ongoing costs: $100,000)
‐ ‐$ 30,000$
Community
Services
Recommended Funding: Development Impact Fee Conversion
This action increases funding for contractual services to facilitate the conversion of three existing
Development Impact Fee Programs. Currently assessed on a per dwelling basis, these fees will be transitioned
to a per building square foot basis, in compliance with California State Assembly Bill 602. Additional funding is
recommend in the Planning and Development Services Department ($20,000) to fund half of the total contract
cost as these fees are maintained jointly by the two departments. (Ongoing costs: $0)
‐ ‐$ 20,000$
CITY OF PALO ALTO
Expenses
ATTACHMENT A, EXHIBIT 1
65,000$ ‐$ ‐ Recommended Funding: Fire Equipment Maintenance and Training Supplies
This action adds $65,000 in ongoing funding for first responder equipment maintenance and training supplies.
This funding addresses maintenance and repair costs for personal protective equipment (PPE), equipment
tracking software, and supplied air respirator machines. Additionally, this action adds funding for training drill
supplies due to an increase in costs such as lumber as well as an increase in training needs due to staff
turnover. (Ongoing costs: $65,000)
Fire
Item 11
Attachment A - FY 2024
Recommended Operating
and Capital Budget
Adjustments
Item 11: Staff Report Pg. 17 Packet Pg. 314 of 428
Revenues
Department FTE Adjustment Adjustment
GENERAL FUND (102)
CITY OF PALO ALTO
Expenses
ATTACHMENT A, EXHIBIT 1
Non‐
Departmental
Technical Adjust: Projected Tax Revenue/Transfer to the Capital Improvement Fund
This action recognizes adjustments to estimates for Sales Tax ($1.6 million increase), Utility Users Tax (UUT)
($1.2 million increase), Investment Earnings ($1.1 million increase), and Property Tax ($0.8 million increase),
partially offset by Transient Occupancy Tax (TOT) ($1.3 million decrease) and Documentary Transfer Tax (DTT)
($0.1 million decrease) based on trends experienced in the first half of FY 2024. This adjustment would bring
Property Tax revenue to $64.6 million, Sales Tax revenue to $37.7 million, TOT revenue to $25.5 million, UUT
revenue to $19.7 million, DTT to $5.8 million, and Investment Earnings to $2.9 million. This action also
decreases the transfer to the Capital Infrastructure Reserve by $0.3 million due to the reduced TOT revenue
that Council designated to fund Capital Improvements. (Ongoing savings: $0)
‐ 3,289,000$ (300,000)$
Non‐
Departmental
Technical Adjust: Business Tax Revenue Alignment/Transfer to the Capital Improvement Fund
This is a technical correction to consolidate the recognition and receipt of all Business Tax revenue in the City's
General Fund; no new revenue is reflected in this action. Previously the budget reflected tax revenues in
association to transportation capital investments in the Capital Improvement Fund ($0.8 million). This action
also establishes a transfer to the Capital Improvement Fund to maintain the allocation of the funding in
alignment with the Council's adopted Advisory Spending Resolution to fund transportation and grade
separation projects. (Ongoing savings: $0)
‐ 750,000$ 750,000$
Non‐
Departmental
Technical Adjust: El Camino Real Ballpark/Lot 37 FY 2023 Rent Funding
This action increases expenses to allow payment of the Fiscal Year 2023 rent due to Stanford for the El Camino
Real Ballpark, also referred to as Lot 37. The FY 2023 rent was withheld by the City while a minor error on the
rental invoice was resolved with Stanford. Agreement was reached in FY 2024 and the City is now ready to
release the FY 2023 rent payment; however, the remaining funding in FY 2023 was inadvertently omitted from
the reappropriation process to move funds into FY 2024. (Ongoing costs: $0)
‐ ‐$ 220,540$
Non‐
Departmental
Technical Adjust: Transfer to the Capital Improvement Fund
This action transfers $1.7 million to the Infrastructure Reserve in the Capital Improvement Fund, as approved
by the City Council on January 16, 2024 in the FY 2023 Annual Comprehensive Financial Report (ACFR) for BSR
exceeding the 20% target level. (Ongoing costs: $0)
‐ ‐$ 1,700,000$
Non‐
Departmental
Technical Adjust: Transfer to the General Benefits Fund for Supplemental Pension Contributions
This action transfers $1.7 million to the General Benefits Fund to increase the contribution to the City's Section
115 Pension Trust Fund, as approved by the Council on January 16, 2024 in the FY 2023 Annual
Comprehensive Financial Report (ACFR) for BSR exceeding the 20% target level. (Ongoing costs: $0)
‐ ‐$ 1,700,000$
Non‐
Departmental
Technical Adjust: FY 2023 Year‐End Cleanup for the Equity Transfer
This action adjusts the equity transfer from the gas and electric funds with an overall increase of $0.3 million
to align with FY 2023 year‐end actuals. The gas equity transfer increases by $0.5 million to adjust the FY23
year‐end amount from $6.7 million to $7.2 million per the staff report on April 17, 2023 to Council (CMR 2303‐
1219). This action also includes a decrease to the electric equity transfer by $0.2 million to adjust the FY23
year‐end amount from $14.5 million to $14.3 million based on a reduced PG&E Return on Equity estimate
from 10.25% to 10.00%. (Ongoing savings: $0)
‐ 293,000$ ‐$
Non‐
Departmental
Technical Adjust: Utility Transfer Settlement Funding (Green v. City of Palo Alto)
This action appropriates $11.2 million from the Utility Transfer Legal Cost Reserve to the General Fund for the
first set of refunds issued to class members as a result of the Green v. City of Palo Alto (Santa Clara Superior
Court, Case No. 1‐16‐CV‐300760) settlement. The reserve will retain a balance of $6.3 million that will be
appropriated based on future settlement payment needs. (Ongoing costs: $6.3M)
‐ ‐$ 11,153,960$
Non‐
Departmental
Technical Adjust: Reduce Utility Transfer Legal Cost Reserve
This action reduces the Utility Transfer Legal Cost Reserve by $11.2 million to fund the first round of refunds
issued to class members as a result of the Green v. City of Palo Alto (Santa Clara Superior Court, Case No.
1‐16‐CV‐300760) settlement. The reserve will retain a balance of $6.3 million that will be appropriated based
on future settlement payment terms. (Ongoing savings: $6.3M)
‐ ‐$ (11,153,960)$
Item 11
Attachment A - FY 2024
Recommended Operating
and Capital Budget
Adjustments
Item 11: Staff Report Pg. 18 Packet Pg. 315 of 428
Revenues
Department FTE Adjustment Adjustment
GENERAL FUND (102)
CITY OF PALO ALTO
Expenses
ATTACHMENT A, EXHIBIT 1
Non‐
Departmental
Technical Adjust: Uncertainty Reserve
This action reduces the City's FY 2024 Uncertainty Reserve by $0.6 million from it's FY 2024 Adopted Budget
level of $10.1 million. The Uncertainty Reserve was set aside as part of the FY 2024 process to proactively
reserve funding for FY 2025 forecasted deficit between General Fund revenues and expenses as well as $1.0
million for FY 2024 Mid‐Year additional priority investments for: fleet electrification, sea level rise, youth
mental health, eucalyptus tree removal, unhoused services, and regulating short term rentals. This Mid‐Year
recommends investments in fleet electrification, youth mental health, a rental registry program, California
Avenue car free streets and parklet prototypes. This leaves $9.5 million in unspent reserve funds. Of this $9.5
million, approximately $6.0 million will be necessary to provide one‐time funding for the FY 2025 forecasted
deficit outlined in the City's 2025‐3034 Long Range Financial Forecast. (Ongoing savings: $9.5M)
‐ ‐$ (560,000)$
Office of
Transportation
Recommended Funding: Measure B for Safe Routes to School/Revenue from Other Agencies
This action recognizes $0.2 million in grant revenue from the Valley Transportation Agency's (VTA) 2016
Measure B Bicycle and Pedestrian Education and Encouragement Funding and increases contract services by
the same amount. Staff will use the grant funding to hire a consultant to manage its Safe Routes to School
Program. Currently, the City utilizes multiple vendors for services such as bicycle safety classes and bicycle
repair. Combining such functions within a single contract will simplify program administration and
performance. (Ongoing costs: $0)
‐ 213,725$ 213,725$
Office of
Transportation
Recommended Funding: Palo Alto Transportation Management Authority (PATMA)
This action increases the contract with PATMA by $42,000, half of the amount requested. The current annual
budget is $200,000, but the true cost of annual services is $330,000. PATMA has been utilizing surplus funding
received in prior years to cover costs exceeding the annual budget, but those surplus funds have now been
spent, and $84,000 is needed to continue the current service level of an estimated 306 cars taken off the road.
PATMA will need to evaluate staff time and outreach at hotels, restaurants, and shops in the City. Additional
ongoing cost increases for PATMA services will be considered during the FY 2025 budget development
process. (Ongoing costs: $0)
‐ ‐$ 42,000$
Office of
Transportation
FY 2024 Budget Council Priority: Youth Mental Health Event Funding (PALink)
This action funds rides through PA Link for youth attending a city‐hosted youth mental health event and other
vital locations to access programs and services conducive to enhancing mental health. As part of the FY 2024
Budget Adoption, select priorities were identified to be revisited at Mid‐Year. Additional funding is
recommended in the Community Services Department ($30,000) to host the event. (Ongoing costs: $6,000)
‐ ‐$ 3,000$
Planning and
Development
Recommended Funding: Development Impact Fee Conversion
This action increases funding for contractual services to facilitate the conversion of three existing
Development Impact Fee Programs. Currently assessed on a per dwelling basis, these fees will be transitioned
to a per building square foot basis, in compliance with California State Assembly Bill 602. Additional funding is
recommend in the Community Services Department to fund half of the total contract cost as these fees are
maintained jointly by the two departments. (Ongoing costs: $0)
‐ ‐$ 20,000$
Planning and
Development
Recommended Funding: Cost Allocation Fee Study Amendment
This action increases funding for an amendment to the cost allocation fee study for Planning and Development
services fees. Commenced in 2021, the study faced delays due to shifts in priorities induced by the pandemic.
Additional funding is needed to address escalated costs associated with these delays and to encompass the
extended time needed to complete the scope of services. (Ongoing costs: $0)
‐ ‐$ 59,000$
Planning and
Development
FY 2024 Budget Council Priority: Parklet Prototypes
This action appropriates $84,000 for the estimated costs of development of up to three parklet prototype
concepts. This uses one of the City's on‐call contracts with Urban Planning Partners, Inc. and will include long
range planning, application processing, and environmental review services. (Ongoing costs: $0)
‐ ‐$ 84,000$
Item 11
Attachment A - FY 2024
Recommended Operating
and Capital Budget
Adjustments
Item 11: Staff Report Pg. 19 Packet Pg. 316 of 428
Revenues
Department FTE Adjustment Adjustment
GENERAL FUND (102)
CITY OF PALO ALTO
Expenses
ATTACHMENT A, EXHIBIT 1
Planning and
Development
FY 2024 Budget Council Priority: Rental Registry Program Administration and Implementation
This action adds a 1.00 FTE Senior Planner position and $228,000 in contractual funding for software to
establish the rental registry program as adopted and directed by the City Council on November 27, 2023.
These resources reflect first year expenditures after factoring vacancy savings, but the program is expected to
be fully funded by collected fees starting in FY 2025. (Ongoing costs: $0)
1.00 ‐$ 228,000$
Planning and
Development
Technical Adjust: Deposit‐Based Cost Recovery Amendment
This action increases revenue and expenses accordingly to support the continuity of services for the deposit‐
based cost recovery program. The Planning and Development Services Department provides a service to
expedite entitlement studies through the use and expertise of outside consultants for private development
projects. These services are fully cost recoverable and paid for by the planning applicant who directly receives
these services. (Ongoing costs: $0)
‐ 146,000$ 146,000$
Planning and
Development
Recommended Funding: Development Center and Planning Special Project Staffing
This action deletes a 1.00 FTE Assistant Chief Building Official position and adds a 1.00 FTE Planning Division
Manager position. The Assistant Chief Building Official was added in FY 2023, to focus on improving the permit
process, establish interdepartmental workflows, and problem solve complex policy and operational issues as
they arise. After recruitment challenges and a closer review of duties, it is recommended that this realignment
of staffing be made to better align with the goals and needs of improving the Development center and
planning operations. Ongoing this will have a net cost of approximately $78,000 as this includes funding
reallocation between revenue backed fee activities and General Fund activities as well as increased costs for
the Planning Division Manager position. In FY 2024, these costs will be absorbed within existing levels through
vacancy savings. (Ongoing costs: $78,000)
‐ ‐$ ‐$
Planning and
Development
FY 2024 Budget Process Priority Referal: Fleet Electrification
This action allows for two Chevy Blazers in the Planning and Development Services Department used for
Building Inspections to be purchased as electric vehicles instead of the gas powered vehicles previously
approved as part of the FY 2024 Adopted Budget. This is part of an action that was deferred by Council during
FY 2024 Budget Adoption to allocate $1.3 million across various funds to allow for additional FY 2024 vehicle
purchases and replacements to be all‐electric. (Ongoing costs: $0)
‐ ‐$ 50,000$
Planning and
Development
Recommended Funding: Code Enforcement Supervisor Vehicle
This action allocates $64,000 for a new electric Chevy Blazer for the Code Enforcement Supervisor position
added as part of the FY 2024 Adopted Budget. The Department has attempted to use a shared vehicle;
however, this position manages the City's more complex enforcement cases and builds relationships with the
community and partner departments which supports a dedicated electric vehicle for daily off‐site duties.
(Ongoing costs: $0)
‐ ‐$ 64,000$
Fund Balance Adjustment to Fund Balance FY 2023 Year End use of BSR
This action reduces the current Budget Stabilization Reserve (BSR) FY 2024 projected level by $3.6 million in
alignment with the actions recommended and approved by the City Council in the FY 2023 Year‐End Annual
Comprehensive Financial Report (ACFR) and Year End Budget transactions approved by Council on January 16,
2024. This reflects allocation of funds above the Council goal of 20% of General Fund expenses based on FY
2023 year end actual financial activity. (Ongoing cost: $0)
‐ ‐$ (3,620,540)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance increases the Budget Stabilization Reserve (BSR) projected for June 30,
2024. This would bring the BSR to an estimate of $57.2 million, this is above the Council target of 20% by $3.3
million and staff expects to discuss use of these funds as part of the FY 2025 budget process in the coming
months. These funds combined with any unspent Uncertainty Reserve funds are expected to be part of the
financial planning for FY 2025 and the near term beyond that.
‐ ‐$ 3,561,000$
GENERAL FUND (102) SUBTOTAL 1.00 4,782,725$ 4,782,725$
Item 11
Attachment A - FY 2024
Recommended Operating
and Capital Budget
Adjustments
Item 11: Staff Report Pg. 20 Packet Pg. 317 of 428
Revenues
Department FTE Adjustment Adjustment
CAPITAL IMPROVEMENT FUNDS
GENERAL FUND CAPITAL IMPROVEMENT FUND (471)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in
Attachment A, Exhibit 2.
‐ (8,253,248)$ (7,556,567)$
Capital Technical Adjust: Transfer from the General Fund (FY 2023 Year‐End Savings)
This action transfers $1.7 million from the General Fund to the Infrastructure Reserve in the
Capital Improvement Fund, as approved by the City Council on January 16, 2024 in the FY
2023 Annual Comprehensive Financial Report (ACFR) for BSR exceeding the 20% target level.
(Ongoing savings: $0)
‐ 1,700,000$ ‐$
Capital Technical Adjust: Transfer from the General Fund (Business Tax Revenue)
This action transfers Business Tax revenue recognized in the General Fund to rail grade
separation capital projects (PL‐24000 and PL‐24001) in the Capital Improvement Fund in
alignment with the Council's adopted Advisory Spending Resolution. (Ongoing savings: $0)
‐ 750,000$ ‐$
Capital Technical Adjust: Business Tax Revenue Category Realignment
This action removes Business Tax revenue that had been budgeted as such in rail grade
separation capital projects (PL‐24000 and PL‐24001) in the Capital Improvement Fund. That
revenue will instead be recognized in the General Fund and, in alignment with the Council's
adopted Advisory Spending Resolution, allocated to the Capital Improvement Fund via
transfers. (Ongoing costs: $0)
‐ (750,000)$ ‐$
Capital Technical Adjust: Transfer from General Fund (TOT)
This action reduces transfers from the General Fund to the Infrastructure Reserve in the
Capital Improvement Fund in alignment with adjustments to estimates for Transient
Occupancy Tax (TOT) revenue based on trends experienced in the first half of FY 2024.
(Ongoing costs: $0)
‐ (300,000)$ ‐$
Capital Technical Adjust: Transfer from Community Development Block Grant (CDBG)
This action aligns the FY24 Budget with the FY23‐24 CDBG Annual Action Plan by recognizing a
transfer from the CDBG Fund to the Capital Improvement Fund for the Sidewalk Repairs
project (PO‐89003). (Ongoing costs: $0)
‐ 211,673$ 211,673$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
‐ ‐$ 703,319$
GENERAL FUND CAPITAL IMPROVEMENT FUND (471) SUBTOTAL ‐ (6,641,575)$ (6,641,575)$
CITY OF PALO ALTO
Expenses
ATTACHMENT A, EXHIBIT 1
Item 11
Attachment A - FY 2024
Recommended Operating
and Capital Budget
Adjustments
Item 11: Staff Report Pg. 21 Packet Pg. 318 of 428
Revenues
Department FTE Adjustment Adjustment
ENTERPRISE FUNDS
AIRPORT ENTERPRISE FUND (530)
Public Works Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund)
This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the
City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to
"catch up" to General Fund contribution levels. (Ongoing costs: $0)
‐ ‐$ 36,112$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
‐ ‐$ (36,112)$
AIRPORT ENTERPRISE FUND (530) SUBTOTAL ‐ ‐$ ‐$
UTILITIES ADMINISTRATION FUND (521)
Utilities Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund)
This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the
City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to
"catch up" to General Fund contribution levels. (Ongoing costs: $0)
‐ ‐$ 121,124$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
‐ ‐$ (121,124)$
UTILITIES ADMINISTRATION FUND (521) SUBTOTAL ‐ ‐$ ‐$
ELECTRIC FUND (513 & 523)
Utilities FY 2024 Budget Council Priority: Fleet Electrification
This action allows for two vehicles in the Utilities Department to be replaced by two all‐electric Ford
Ranger Small Pickup Trucks. It is part of an action that was deferred by Council during FY 2024 Budget
Adoption to allocate $1.3 million across the General, Electric, Gas, Wastewater Collection, and Water
Funds to allow for additional FY 2024 vehicle replacements to be all‐electric. (Ongoing costs: $0)
‐ ‐$ 160,000$
Utilities Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund)
This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the
City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to
"catch up" to General Fund contribution levels. (Ongoing costs: $0)
‐ ‐$ 748,983$
Utilities Technical Adjust: Net Sales Revenue/Electric Commodity Adjustments
This one‐time action aligns the Electric commodity purchase and sales budget with a net increase of
$25.0 million to the Electric Fund, reflecting the updated forecasts as of November 2023. The reduction
of $11.2 million in expenses is attributed to lower power revenue requirements for Base Resource
customers, reduced CVPIA Restoration Fund charges, and decreased market purchase costs due to
significantly higher hydro output. The $13.8 million increase in revenue is due to surplus sales revenue
and improved hydro conditions, enabling the sale of excess renewable energy credits. (Ongoing costs:
$0)
‐ 13,818,733$ (11,226,940)$
Utilities Technical Adjust: Year‐end Cleanup Equity Transfer to General Fund
This action also includes a decrease to the electric equity transfer by $0.2 million to adjust the FY23
year‐end amount from $14.5 million to $14.3 million based on a reduced PG&E Return on Equity
estimate from 10.25% to 10.00%. (Ongoing costs: $0)
‐ ‐$ (215,000)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
‐ ‐$ 24,351,690$
ELECTRIC FUND (513 & 523) SUBTOTAL ‐ 13,818,733$ 13,818,733$
FIBER OPTICS FUND (533)
Utilities Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund)
This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the
City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to
"catch up" to General Fund contribution levels. (Ongoing costs: $0)
‐ ‐$ 38,182$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
‐ ‐$ (38,182)$
FIBER OPTICS FUND (533) SUBTOTAL ‐ ‐$ ‐$
CITY OF PALO ALTO
Expenses
ATTACHMENT A, EXHIBIT 1
Item 11
Attachment A - FY 2024
Recommended Operating
and Capital Budget
Adjustments
Item 11: Staff Report Pg. 22 Packet Pg. 319 of 428
Revenues
Department FTE Adjustment Adjustment
ENTERPRISE FUNDS
CITY OF PALO ALTO
Expenses
ATTACHMENT A, EXHIBIT 1
GAS FUND (514 & 524)
Utilities FY 2024 Budget Council Priority: Fleet Electrification
This action allows for a vehicle in the Utilities Department to be replaced by an all‐electric Ford F‐150. It
is part of an action that was deferred by Council during FY 2024 Budget Adoption to allocate $1.3
million across the General, Electric, Gas, Wastewater Collection, and Water Funds to allow for
additional FY 2024 vehicle replacements to be all‐electric. (Ongoing costs: $0)
‐ ‐$ 80,000$
Utilities Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund)
This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the
City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to
"catch up" to General Fund contribution levels. (Ongoing costs: $0)
‐ ‐$ 284,498$
Utilities Technical Adjust: Water, Gas, Wastewater Operating Transfer Technical Clean Up
This one‐time action corrects the transfers between the Gas and Water Funds from FY2018 to FY2022
for a shared recurring project, WS‐02014 WGW Utility GIS Data. In 2018, a change in fund transfer
methodology to collect the Gas portion of the project changed for more visibility on the fund transfers,
and the action to terminate the former method was overlooked. (Ongoing costs: $0)
‐ 728,920$ ‐$
Utilities Technical Adjust: Year‐end Cleanup Equity Transfer to General Fund
This mid‐year action increases the gas equity transfer by $0.5 million to adjust the FY23 year end
amount from $6.7 million to $7.2 million per the staff report on April 17, 2023 to Council (CMR 2303‐
1219). (Ongoing costs: $0)
‐ ‐$ 508,000$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
‐ ‐$ (143,578)$
GAS FUND (514 & 524) SUBTOTAL ‐ 728,920$ 728,920$
REFUSE FUND (525)
Public Works Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund)
This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the
City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to
"catch up" to General Fund contribution levels. (Ongoing costs: $0)
‐ ‐$ 90,253$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
‐ ‐$ (90,253)$
REFUSE FUND (525) SUBTOTAL ‐ ‐$ ‐$
STORMWATER MANGEMENT FUND (528)
Public Works Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund)
This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the
City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to
"catch up" to General Fund contribution levels. (Ongoing costs: $0)
‐ ‐$ 85,132$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
‐ ‐$ (85,132)$
STORMWATER MANGEMENT FUND (528) SUBTOTAL ‐ ‐$ ‐$
Item 11
Attachment A - FY 2024
Recommended Operating
and Capital Budget
Adjustments
Item 11: Staff Report Pg. 23 Packet Pg. 320 of 428
Revenues
Department FTE Adjustment Adjustment
ENTERPRISE FUNDS
CITY OF PALO ALTO
Expenses
ATTACHMENT A, EXHIBIT 1
WASTEWATER COLLECTION FUND (527)
Utilities FY 2024 Budget Council Priority: Fleet Electrification
This action allows for one vehicle in the Utilities Department to be replaced by an all‐electric GMC 6yrd
Dump Truck and another vehicle to be replaced by an all‐electric Ford F‐150 Truck. It is part of an action
that was deferred by Council during FY24 Budget Adoption to allocate $1.3 million across the General,
Electric, Gas, Wastewater Collection, and Water Funds to allow for additional FY 2024 vehicle
replacements to be all‐electric. (Ongoing costs: $0)
‐ ‐$ 530,000$
Utilities Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund)
This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the
City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to
"catch up" to General Fund contribution levels. (Ongoing costs: $0)
‐ ‐$ 142,032$
Utilities Technical Adjust: Water, Gas, Wastewater Operating Transfer Technical Clean Up
This one‐time action corrects the transfers between the Wastewater Collection and Water Funds from
FY2018 to FY2022 for a shared recurring project, WS‐02014 WGW Utility GIS Data. In 2018, a change in
fund transfer methodology to collect the Gas portion of the project changed for more visibility on the
fund transfers, and the action to terminate the former method was overlooked. (Ongoing costs: $0)
850,288$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
‐ ‐$ 178,256$
WASTEWATER COLLECTION FUND (527) SUBTOTAL ‐ 850,288$ 850,288$
WASTEWATER TREATMENT FUND (526)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in Attachment A,
Exhibit 2.
‐ (3,010,000)$ (2,578,200)$
Public Works Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund)
This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the
City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to
"catch up" to General Fund contribution levels. (Ongoing costs: $0)
‐ ‐$ 423,325$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
‐ ‐$ (855,125)$
WASTEWATER TREATMENT FUND (526) SUBTOTAL ‐ (3,010,000)$ (3,010,000)$
WATER FUND (522)
Utilities FY 2024 Budget Council Priority: Fleet Electrification
This action allows for a vehicle in the Utilities Department to be replaced by an all‐electric GMC 6yrd
Dump Truck. It is part of an action that was deferred by Council during FY24 Budget Adoption to
allocate $1.3 million across the General, Electric, Gas, Wastewater Collection, and Water Funds to allow
for additional FY 2024 vehicle replacements to be all‐electric. (Ongoing costs: $0)
‐ ‐$ 450,000$
Utilities Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund)
This action recognizes a transfer of $2.8 million from various funds to increase the contributions to the
City's Section 115 Pension Trust Fund. This represents a proportional contribution from other funds to
"catch up" to General Fund contribution levels. (Ongoing costs: $0)
‐ ‐$ 255,461$
Utilities Water, Gas, Wastewater Operating Transfer Technical Clean Up
This one‐time action corrects the fund transfers from FY2018 to FY2022 for a shared recurring project,
WS‐02014 WGW Utility GIS Data, decreasing the Water Fund by $1,579,209; increasing $850,288 to the
Wastewater Fund and $728,920 to the Gas Fund. (Ongoing costs: $0)
‐ ‐$ 1,579,209$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
‐ ‐$ (2,284,670)$
WATER FUND (522) SUBTOTAL ‐$ ‐$
Item 11
Attachment A - FY 2024
Recommended Operating
and Capital Budget
Adjustments
Item 11: Staff Report Pg. 24 Packet Pg. 321 of 428
Revenues
Department FTE Adjustment Adjustment
INTERNAL SERVICE FUNDS
GENERAL BENEFITS FUND (687)
Non‐
Departmental
Technical Adjust: Transfer from the General Fund for Supplemental Pension Contributions
This net‐neutral action recognizes a transfer of $1.7 million from the General Fund to increase
the contribution to the City's Section 115 Pension Trust Fund, as approved by the City Council
in the FY 2023 Annual Comprehensive Financial Report (ACFR). A corresponding adjustment is
made to recognize pension expense. This brings total contributions to $73.3 million through FY
2024 ($47.5 million from the General Fund). Staff will include proportional contributions from
other funds as part of the FY 2024 year‐end or FY 2025 Proposed Budget process. (Ongoing
costs: $0)
‐ 1,700,000$ 1,700,000$
Non‐
Departmental
Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund)
This action recognizes a transfer of $2.8 million from various funds to increase the
contributions to the City's Section 115 Pension Trust Fund. This represents a proportional
contribution from other funds to "catch up" to General Fund contribution levels. (Ongoing
costs: $0)
‐ ‐$ 2,776,676$
Non‐
Departmental
Technical Adjust: Supplemental Pension Contributions
This action increases contributions to the City's Section 115 Pension Trust Fund by $1.2
million. These savings represents amounts collected from departments that exceeded annual
required payments in the respective fiscal year and remain unspent in the General Benefits
Fund. (Ongoing costs: $0)
‐ ‐$ 1,200,000$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
‐ ‐$ (3,976,676)$
GENERAL BENEFITS FUND (687) SUBTOTAL ‐ 1,700,000$ 1,700,000$
GENERAL LIABILITIES INSURANCE FUND (689)
Human
Resources
Technical Adjust: Umbrella Excess Liability Insurance Expense
This action increases the estimate for umbrella excess liability insurance to align
with higher than anticipated premium costs, from $4.2 million to $4.4 million. (Ongoing costs:
$0)
‐ ‐$ 196,000$
Human
Resources
Technical Adjust: Property Loss Insurance Expense
This action increases the estimate for property loss insurance to align with higher than
anticipated premium costs, from $0.8 million to $0.9 million. (Ongoing costs: $0)
‐ ‐$ 159,000$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
‐ ‐$ (355,000)$
GENERAL LIABILITIES INSURANCE FUND (689) SUBTOTAL ‐ ‐$ ‐$
INFORMATION TECHNOLOGY FUND (682)
Information
Technology
Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund)
This action recognizes a transfer of $2.8 million from various funds to increase the
contributions to the City's Section 115 Pension Trust Fund. This represents a proportional
contribution from other funds to "catch up" to General Fund contribution levels. (Ongoing
costs: $0)
‐ ‐$ 368,589$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
‐ ‐$ (368,589)$
INFORMATION TECHNOLOGY FUND (682) SUBTOTAL ‐ ‐$ ‐$
CITY OF PALO ALTO
Expenses
ATTACHMENT A, EXHIBIT 1
Item 11
Attachment A - FY 2024
Recommended Operating
and Capital Budget
Adjustments
Item 11: Staff Report Pg. 25 Packet Pg. 322 of 428
Revenues
Department FTE Adjustment Adjustment
INTERNAL SERVICE FUNDS
CITY OF PALO ALTO
Expenses
ATTACHMENT A, EXHIBIT 1
PRINT AND MAIL SERVICES FUND (683)
Administrative
Services
Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund)
This action recognizes a transfer of $2.8 million from various funds to increase the
contributions to the City's Section 115 Pension Trust Fund. This represents a proportional
contribution from other funds to "catch up" to General Fund contribution levels. (Ongoing
costs: $0)
‐ ‐$ 8,906$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
‐ ‐$ (8,906)$
PRINT AND MAIL SERVICES FUND (683) SUBTOTAL ‐ ‐$ ‐$
VEHICLE REPLACEMENT & MAINTENANCE FUND (681)
Public Works Fleet Electrification
This action, which was deferred by Council during FY24 Budget Adoption, allows for 9
additional FY 2024 vehicle replacements to be all‐electric: 3 Ford F‐150s, 2 GMC 6yrd Dump
Trucks, 2 Ford Ranger Small Pickup Trucks, and 2 Chevy Blazers. The cost of $1.3 million is
spread across 5 funds (General Fund, Electric Fund, Gas Fund, Wastewater Collection Fund,
and Water Fund) in the Community Services, Planning and Development Services, and Utilities
Departments, with $130,000 in the General Fund. (Ongoing costs: $0)
‐ 1,350,000$ 1,350,000$
Public Works Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund)
This action recognizes a transfer of $2.8 million from various funds to increase the
contributions to the City's Section 115 Pension Trust Fund. This represents a proportional
contribution from other funds to "catch up" to General Fund contribution levels. (Ongoing
costs: $0)
‐ ‐$ 114,486$
Planning and
Development
Recommended Funding: Code Enforcement Supervisor Vehicle
This action allocates $64,000 for a new electric Chevy Blazer for the Code Enforcement
Supervisor position added as part of the FY 2024 Adopted Budget. The Department has
attempted to use a shared vehicle; however, this position manages the City's more complex
enforcement cases and builds relationships with the community and partner departments
which supports a dedicated electric vehicle for daily off‐site duties. (Ongoing costs: $0)
‐ 64,000$ 64,000$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
‐ ‐$ (114,486)$
VEHICLE REPLACEMENT & MAINTENANCE FUND (681) SUBTOTAL ‐ 1,414,000$ 1,414,000$
WORKERS' COMPENSATION FUND (688)
Non‐
Departmental
Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund)
This action recognizes a transfer of $2.8 million from various funds to increase the
contributions to the City's Section 115 Pension Trust Fund. This represents a proportional
contribution from other funds to "catch up" to General Fund contribution levels. (Ongoing
costs: $0)
‐ ‐$ 11,246$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
‐ ‐$ (11,246)$
WORKERS' COMPENSATION FUND (688) SUBTOTAL ‐$ ‐$
Item 11
Attachment A - FY 2024
Recommended Operating
and Capital Budget
Adjustments
Item 11: Staff Report Pg. 26 Packet Pg. 323 of 428
Revenues
Department FTE Adjustment Adjustment
SPECIAL REVENUE FUNDS
PUBLIC ART FUND (207)
Community
Services
Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund)
This action recognizes a transfer of $2.8 million from various funds to increase the contributions to
the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other
funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0)
‐ ‐$ 6,411$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
‐ ‐$ (6,411)$
PUBLIC ART FUND (207) SUBTOTAL ‐ ‐$ ‐$
GAS TAX FUND (231)
Public Works Technical Adjust: Gas Tax Revenues/Transfers to the Capital Improvement Fund for Streets
Improvement Project (PE‐86070)
This action reduces Fund 231 Gas Tax revenue by $16,194, and reduces the transfer to the Capital
Improvement Fund by $16,194 for the Streets Improvement project (PE‐86070). This is based on
the State's updated January HUTA and SB1 gas tax revenue estimates. (Ongoing costs: $0)
‐ (16,194)$ (16,194)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
‐ ‐$ ‐$
GAS TAX FUND (231) SUBTOTAL ‐ (16,194)$ (16,194)$
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUND (232)
Planning and
Development
Technical Adjust: Transfer to Capital Improvement Fund
This action aligns the FY24 Budget with the FY23‐24 CDBG Annual Action Plan by recognizing a
transfer from CDBG to the Capital Improvement Fund for the Sidewalk Repairs project (PO‐89003).
‐ ‐$ 211,673$
Planning and
Development
Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund)
This action recognizes a transfer of $2.8 million from various funds to increase the contributions to
the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other
funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0)
‐ ‐$ 660$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
‐ ‐$ (212,333)$
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUND (232) SUBTOTAL ‐ ‐$ ‐$
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2024 BUDGET
Expenses
ATTACHMENT A, EXHIBIT 1
Item 11
Attachment A - FY 2024
Recommended Operating
and Capital Budget
Adjustments
Item 11: Staff Report Pg. 27 Packet Pg. 324 of 428
Revenues
Department FTE Adjustment Adjustment
SPECIAL REVENUE FUNDS
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2024 BUDGET
Expenses
ATTACHMENT A, EXHIBIT 1
HOUSING IN‐LIEU/RESIDENTIAL (233)
Planning and
Development
Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund)
This action recognizes a transfer of $2.8 million from various funds to increase the contributions to
the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other
funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0)
‐ ‐$ 990$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
‐ ‐$ (990)$
HOUSING IN‐LIEU/RESIDENTIAL (233) SUBTOTAL ‐ ‐$ ‐$
HOUSING IN‐LIEU/COMMERCIAL (234)
Planning and
Development
Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund)
This action recognizes a transfer of $2.8 million from various funds to increase the contributions to
the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other
funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0)
‐ ‐$ 990$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
‐ ‐$ (990)$
HOUSING IN‐LIEU/COMMERCIAL (234) SUBTOTAL ‐ ‐$ ‐$
UNIVERSITY AVENUE FUND (236)
Office of
Transportation
Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund)
This action recognizes a transfer of $2.8 million from various funds to increase the contributions to
the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other
funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0)
‐ ‐$ 1,976$
Administrative
Services
Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund)
This action recognizes a transfer of $2.8 million from various funds to increase the contributions to
the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other
funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0)
‐ ‐$ 5,073$
Public Works Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund)
This action recognizes a transfer of $2.8 million from various funds to increase the contributions to
the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other
funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0)
‐ ‐$ 14,955$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
‐ ‐$ (22,004)$
UNIVERSITY AVENUE FUND (236) SUBTOTAL ‐ ‐$ ‐$
Item 11
Attachment A - FY 2024
Recommended Operating
and Capital Budget
Adjustments
Item 11: Staff Report Pg. 28 Packet Pg. 325 of 428
Revenues
Department FTE Adjustment Adjustment
SPECIAL REVENUE FUNDS
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2024 BUDGET
Expenses
ATTACHMENT A, EXHIBIT 1
CALIFORNIA AVENUE FUND (237)
Office of
Transportation
Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund)
This action recognizes a transfer of $2.8 million from various funds to increase the contributions to
the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other
funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0)
‐ ‐$ 1,976$
Administrative
Services
Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund)
This action recognizes a transfer of $2.8 million from various funds to increase the contributions to
the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other
funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0)
‐ ‐$ 2,177$
Public Works Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund)
This action recognizes a transfer of $2.8 million from various funds to increase the contributions to
the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other
funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0)
‐ ‐$ 1,750$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
‐ ‐$ (5,903)$
CALIFORNIA AVENUE FUND (237) SUBTOTAL ‐ ‐$ ‐$
RESIDENTIAL PARKING PERMIT FUND (239)
Office of
Transportation
Technical Adjust: Other Funds Catch‐Up (115 Pension Trust Fund)
This action recognizes a transfer of $2.8 million from various funds to increase the contributions to
the City's Section 115 Pension Trust Fund. This represents a proportional contribution from other
funds to "catch up" to General Fund contribution levels. (Ongoing costs: $0)
‐ ‐$ 11,392$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report.
‐ ‐$ (11,392)$
RESIDENTIAL PARKING PERMIT FUND (239) SUBTOTAL ‐ ‐$ ‐$
Item 11
Attachment A - FY 2024
Recommended Operating
and Capital Budget
Adjustments
Item 11: Staff Report Pg. 29 Packet Pg. 326 of 428
Project
Number Title Revenue Expense Comments
PF‐93009 Americans With Disabilities Act
Compliance
$‐ $ (332,551)This action is a technical correction to align FY
2024 budgets with FY 2023 actual financial
activity. There is no change to the project
schedule or scope.
FD‐21000 Automated External Defibrillator
Replacement
$ (38,000) $‐ This action removes all remaining funding
because the project has been completed.
FD‐22000 Extrication Tool Replacement $ (20,845) $ (79,513)This action removes all remaining funding
because the project has been completed.
PE‐18004 Fire Station 4 $ (5,200,000) $‐ This action removes revenue budgeted in FY
2024 because it was received in FY 2023 and
reserved in the fund balance.
PE‐11011 Highway 101 Pestrian/Bicycle Overpass $‐ $ (87,105)This action is a technical correction to align FY
2024 budgets with FY 2023 actual financial
activity. There is no change to the project
schedule or scope.
PE‐12011 Newell Rd/SFC Bridge Replacement $ (3,365,799) $ (3,365,799)This action is a technical correction to align FY
2024 budgets with FY 2023 actual financial
activity. There is no change to the project
schedule or scope.
PL‐17001 Railroad Grade Separation and Safety
Improvements
$ (935,333) $ (3,995,937)The expense action is a technical correction to
align FY 2024 budgets with FY 2023 actual
financial activity, with no change to the project
schedule or scope; the revenue action
reallocates Measure B revenue to PL‐05030 and
PL‐12000 as approved by VTA.
PF‐23001 Roth Building Rehabilitation $ 387,590 $ 587,590 This action adds County grant revenue ($0.4
million) for work on the Roth Building's windows
and roof. Interest earnings on Transfer
Development Rights funding ($0.2 million)
reserved for this project is also appropriated.
PO‐11000 Sign Reflectivity Upgrade $‐ $ (110,000)This action is a technical correction to align FY
2024 budgets with FY 2023 actual financial
activity. There is no change to the project
schedule or scope.
PE‐86070 Street Maintenance $ (16,194) $ (16,194)This action aligns the FY 2024 budget with the
State's updated January HUTA & SB1 Gas Tax
revenue estimates.
PL‐05030 Traffic Signal and Intelligent
Transportation Systems
$ 701,500 $ (157,058)The expense action is a technical correction to
align FY 2024 budgets with FY 2023 actual
financial activity, with no change to the project
schedule or scope; the revenue action adds
Measure B revenue reallocated from PL‐17001
as approved by VTA.
PL‐12000 Transportation and Parking Improvements $ 233,833 $‐ This action adds Measure B revenue reallocated
from PL‐17001 as approved by VTA.
Total $ (8,253,248) $ (7,556,567)
WQ‐19003 Advanced Water Purification Facility $ (500,000) $‐ This action is a technical correction to align FY
2024 budgets with FY 2023 actual financial
activity. There is no change to the project
schedule or scope.
WQ‐14002 Laboratory & Environmental Svcs Bldg $ (2,510,000) $ (2,578,200)This action is a technical correction to align FY
2024 budgets with FY 2023 actual financial
activity. There is no change to the project
schedule or scope.
Total $ (3,010,000) $ (2,578,200)
TOTAL CIP ADJUSTMENTS $ (11,263,248) $ (10,134,767)
CITY OF PALO ALTO
WASTEWATER TREATMENT FUND
ATTACHMENT A, EXHIBIT 2
CAPITAL IMPROVEMENT FUND
Item 11
Attachment A - FY 2024
Recommended Operating
and Capital Budget
Adjustments
Item 11: Staff Report Pg. 30 Packet Pg. 327 of 428
TABLE OF ORGANIZATION
Table of Organization
Table of Organization
FY 2021
Actuals
FY 2022
Actuals
FY 2023
Adopted
Budget
FY 2024
Adjusted
Budget***
FY 2024
Change
FTE
FY 2024
Change %
General Fund
Administrative Services
Account Specialist 4.63 4.13 4.13 4.13 ——%
Account Specialist-Lead 3.45 3.45 3.45 3.45 ——%
Accountant 3.00 2.00 2.00 2.00 ——%
Administrative Assistant 1.00 1.00 1.00 1.00 ——%
Administrative Associate II 1.00 0.50 0.50 1.00 0.50 100.0%
Administrative Associate III 1.00 1.00 1.00 1.00 ——%
Assistant Director Administrative Services 1.65 1.65 1.65 1.65 ——%
Buyer 1.00 2.00 2.00 2.00 ——%
Chief Procurement Officer 1.00 1.00 1.00 1.00 ——%
Contracts Administrator 2.70 1.70 2.70 3.70 1.00 37.0%
Director Administrative Services/CFO 0.80 0.80 0.80 0.80 ——%
Director Office of Management and Budget 1.00 1.00 1.00 1.00 ——%
Management Analyst 2.00 2.00 2.00 2.00 ——%
Manager Budget 2.00 2.00 2.00 2.00 ——%
Manager Real Property 1.00 1.00 1.00 1.00 ——%
Manager Revenue Collections 0.62 0.62 0.62 0.62 ——%
Manager Treasury, Debt & Investments 0.60 0.60 0.60 0.60 ——%
Manager, Finance 1.00 1.00 1.00 1.00 ——%
Payroll Analyst 2.00 2.00 2.00 2.00 ——%
Performance Auditor II 1.00 —————%
Senior Accountant 3.00 3.00 3.00 3.00 ——%
Senior Buyer 1.00 1.00 1.00 1.00 ——%
Senior Management Analyst 2.30 2.30 2.30 2.30 ——%
Storekeeper 1.00 1.00 2.00 2.00 ——%
1
ATTACHMENT B
Item 11
Attachment B - Amended
FY 2024 Table of
Organization
Item 11: Staff Report Pg. 31 Packet Pg. 328 of 428
TABLE OF ORGANIZATION
Storekeeper-Lead 0.20 0.20 0.20 0.20 ——%
Warehouse Supervisor 0.20 0.20 0.20 0.20 ——%
Total Administrative Services 40.15 37.15 39.15 40.65 1.50 3.8%
City Attorney
Assistant City Attorney 3.00 3.00 4.00 4.00 ——%
Chief Assistant City Attorney 1.00 1.00 1.00 1.00 ——%
City Attorney 1.00 1.00 1.00 1.00 ——%
Claims Investigator 1.00 1.00 1.00 1.00 ——%
Deputy City Attorney 1.00 1.00 —0.50 0.50 —%
Legal Fellow 1.00 1.00 1.00 1.00 ——%
Secretary to City Attorney 1.00 1.00 1.00 1.00 ——%
Senior Management Analyst 1.00 1.00 1.00 1.00 ——%
Total City Attorney 10.00 10.00 10.00 10.50 0.50 5.0%
City Auditor
City Auditor 1.00 —————%
Senior Performance Auditor 2.00 —————%
Total City Auditor 3.00 —————%
City Clerk
Administrative Associate III 2.00 2.00 2.00 2.00 ——%
Assistant City Clerk 1.00 1.00 1.00 2.00 1.00 100.0%
City Clerk 1.00 1.00 1.00 1.00 ——%
Deputy City Clerk 1.00 1.00 1.00 —(1.00)(100.0)%
Total City Clerk 5.00 5.00 5.00 5.00 ——%
City Manager
Administrative Assistant 2.00 2.00 2.00 3.00 1.00 50.0%
Assistant City Manager 1.00 1.00 1.00 1.00 ——%
Table of Organization
FY 2021
Actuals
FY 2022
Actuals
FY 2023
Adopted
Budget
FY 2024
Adjusted
Budget***
FY 2024
Change
FTE
FY 2024
Change %
2
ATTACHMENT B
Item 11
Attachment B - Amended
FY 2024 Table of
Organization
Item 11: Staff Report Pg. 32 Packet Pg. 329 of 428
TABLE OF ORGANIZATION
Assistant to the City Manager 2.00 1.00 3.00 3.00 ——%
Chief Communications Officer 1.00 1.00 1.00 1.00 ——%
City Manager 1.00 1.00 1.00 1.00 ——%
Deputy City Manager 1.00 1.00 1.00 1.00 ——%
Executive Assistant to the City Manager 1.00 1.00 1.00 1.00 ——%
Manager Communications 1.00 1.00 1.00 1.00 ——%
Senior Management Analyst ——1.00 1.00 ——%
Total City Manager 10.00 9.00 12.00 13.00 1.00 8.3%
Community Services
Administrative Assistant 1.00 1.00 1.00 1.00 ——%
Administrative Associate III 1.00 —————%
Assistant Director Community Services 2.00 1.00 1.00 2.00 1.00 100.0%
Building Serviceperson 1.00 1.00 1.00 2.00 1.00 100.0%
Building Serviceperson-Lead 0.60 0.60 0.60 2.00 1.40 233.3%
Coordinator Recreation Programs 4.00 4.00 4.00 5.75 1.75 43.8%
Director Community Services 1.00 1.00 1.00 1.00 ——%
Division Manager Open Space, Parks & Golf*———1.00 1.00 —%
Heavy Equipment Operator 0.07 —————%
Inspector, Field Services 2.00 2.00 2.00 2.00 ——%
Junior Museum & Zoo Educator*3.60 3.25 4.10 4.85 0.75 18.3%
Management Analyst 1.00 1.00 1.00 1.00 ——%
Management Assistant 1.00 1.00 1.00 1.00 ——%
Manager Community Services 5.00 5.00 5.00 5.00 ——%
Manager Community Services Senior Program 4.00 4.00 4.00 4.00 ——%
Manager Human Services 1.00 1.00 1.00 1.00 ——%
Park Maintenance Person 6.00 6.00 6.00 6.00 ——%
Table of Organization
FY 2021
Actuals
FY 2022
Actuals
FY 2023
Adopted
Budget
FY 2024
Adjusted
Budget***
FY 2024
Change
FTE
FY 2024
Change %
3
ATTACHMENT B
Item 11
Attachment B - Amended
FY 2024 Table of
Organization
Item 11: Staff Report Pg. 33 Packet Pg. 330 of 428
TABLE OF ORGANIZATION
Park Maintenance-Lead 1.00 1.00 1.00 1.00 ——%
Park Ranger 5.00 5.00 6.00 6.00 ——%
Parks/Golf Crew-Lead 2.00 2.00 2.00 2.00 ——%
Producer Arts/Science Program 12.00 11.00 12.25 9.50 (2.75)(24.4)%
Program Assistant I 7.00 3.00 3.00 3.75 0.75 25.0%
Program Assistant II 4.00 4.00 4.00 4.00 ——%
Project Manager 0.10 0.10 0.10 0.10 ——%
Senior Management Analyst 1.00 1.00 1.00 1.00 ——%
Sprinkler System Representative 4.00 4.00 4.00 4.00 ——%
Superintendent Community Services 2.00 2.00 2.00 2.00 ——%
Superintendent Recreation 1.00 —————%
Theater Specialist 2.00 2.00 2.00 5.00 3.00 150.0%
WGW Heavy Equipment Operator —0.07 0.07 0.07 ——%
Total Community Services 75.37 67.02 70.12 78.02 7.90 11.3%
Fire
40-Hour Captain ——0.20 0.20 ——%
40-Hour Training Battalion Chief 1.00 1.00 1.00 1.00 ——%
40-Hour Training Captain 1.00 1.00 1.00 1.00 ——%
Administrative Assistant 1.00 1.00 1.00 1.00 ——%
Administrative Associate II 2.20 2.20 2.20 2.20 ——%
Administrative Associate III ——0.20 0.20 ——%
Battalion Chief 3.00 3.00 3.00 3.00 ——%
Business Analyst 0.80 0.80 0.80 0.80 ——%
Deputy Chief/Fire Marshal 0.05 0.05 ————%
Deputy Director Technical Services Division 0.20 —0.20 0.20 ——%
Deputy Fire Chief 2.00 1.00 2.00 2.00 ——%
Table of Organization
FY 2021
Actuals
FY 2022
Actuals
FY 2023
Adopted
Budget
FY 2024
Adjusted
Budget***
FY 2024
Change
FTE
FY 2024
Change %
4
ATTACHMENT B
Item 11
Attachment B - Amended
FY 2024 Table of
Organization
Item 11: Staff Report Pg. 34 Packet Pg. 331 of 428
TABLE OF ORGANIZATION
Emergency Medical Service Director 1.00 1.00 1.00 1.00 ——%
Emergency Medical Services Data Specialist 1.00 1.00 1.00 1.00 ——%
Fire Apparatus Operator 26.00 26.00 26.00 26.00 ——%
Fire Captain 21.00 20.00 20.00 20.00 ——%
Fire Chief 1.00 1.00 1.00 1.00 ——%
Fire Fighter 34.00 29.00 34.00 34.00 ——%
Fire Fighter Trainee ——3.00 3.00 ——%
Fire Inspector 0.80 0.40 0.40 2.40 2.00 500.0%
Fire Marshal ——0.05 0.05 ——%
Geographic Information System Specialist 0.50 0.50 0.50 0.50 ——%
Hazardous Materials Inspector 0.30 0.30 0.70 0.70 ——%
Senior Management Analyst 1.00 1.00 1.00 1.00 ——%
Total Fire 97.85 90.25 100.25 102.25 2.00 2.0%
Human Resources
Administrative Assistant ———0.75 0.75 —%
Assistant Director Human Resources 1.00 1.00 1.00 1.00 ——%
Director Human Resources/CPO 1.00 1.00 1.00 1.00 ——%
Human Resources Representative 3.00 2.00 2.00 4.00 2.00 100.0%
Human Resources Technician 4.00 3.00 4.00 2.00 (2.00)(50.0)%
Manager Employee Benefits 1.00 1.00 1.00 1.00 ——%
Manager Employee Relations 1.00 1.00 1.00 1.00 ——%
Senior Human Resources Administrator 3.00 3.00 3.00 4.00 1.00 33.3%
Senior Management Analyst 2.00 2.00 2.00 2.00 ——%
Total Human Resources 16.00 14.00 15.00 16.75 1.75 11.7%
Library
Administrative Assistant ———1.00 1.00 —%
Table of Organization
FY 2021
Actuals
FY 2022
Actuals
FY 2023
Adopted
Budget
FY 2024
Adjusted
Budget***
FY 2024
Change
FTE
FY 2024
Change %
5
ATTACHMENT B
Item 11
Attachment B - Amended
FY 2024 Table of
Organization
Item 11: Staff Report Pg. 35 Packet Pg. 332 of 428
TABLE OF ORGANIZATION
Administrative Associate III 1.00 —1.00 —(1.00)(100.0)%
Assistant Director Library Services 1.00 —1.00 —(1.00)(100.0)%
Business Analyst 1.00 1.00 1.00 —(1.00)(100.0)%
Coordinator Library Programs 1.00 1.00 2.00 5.00 3.00 150.0%
Director Libraries 1.00 1.00 1.00 1.00 ——%
Division Head Library Services 1.00 1.00 1.00 2.00 1.00 100.0%
Librarian 6.00 6.00 7.00 4.00 (3.00)(42.9)%
Library Associate 7.00 6.00 6.00 10.00 4.00 66.7%
Library Specialist 11.50 10.50 12.50 8.00 (4.50)(36.0)%
Management Analyst 1.00 1.00 1.00 1.00 ——%
Manager Library Services 3.00 3.00 3.00 3.00 ——%
Senior Business Analyst ———1.00 1.00 —%
Senior Librarian 8.00 6.00 6.00 8.00 2.00 33.3%
Supervising Librarian 4.00 4.00 4.00 5.00 1.00 25.0%
Total Library 46.50 40.50 46.50 49.00 2.50 5.4%
Office of Emergency Services
Director Office of Emergency Services 1.00 1.00 1.00 1.00 ——%
Office of Emergency Services Coordinator 1.00 1.00 1.00 2.00 1.00 100.0%
Program Assistant II 1.00 —————%
Total Office of Emergency Services 3.00 2.00 2.00 3.00 1.00 50.0%
Office of Transportation
Administrative Assistant 0.50 0.60 0.60 0.60 ——%
Associate Engineer 0.30 0.35 0.35 0.35 ——%
Associate Planner 0.45 0.40 0.40 0.40 ——%
Chief Transportation Official 0.70 0.70 0.70 0.70 ——%
Coordinator Transportation Systems
Management
1.25 0.65 0.65 0.65 ——%
Table of Organization
FY 2021
Actuals
FY 2022
Actuals
FY 2023
Adopted
Budget
FY 2024
Adjusted
Budget***
FY 2024
Change
FTE
FY 2024
Change %
6
ATTACHMENT B
Item 11
Attachment B - Amended
FY 2024 Table of
Organization
Item 11: Staff Report Pg. 36 Packet Pg. 333 of 428
TABLE OF ORGANIZATION
Management Analyst*0.50 0.50 0.50 —(0.50)(100.0)%
Parking Operations-Lead —0.05 0.05 0.05 ——%
Project Engineer 0.45 0.25 0.25 0.25 ——%
Senior Engineer 0.20 0.20 0.55 0.55 ——%
Senior Management Analyst*———0.50 0.50 —%
Senior Planner 0.50 0.15 0.15 1.40 1.25 833.3%
Traffic Engineering-Lead 0.35 0.35 ————%
Transportation Planning Manager 1.15 1.00 1.00 1.00 ——%
Total Office of Transportation 6.35 5.20 5.20 6.45 1.25 24.0%
Planning and Development Services
40-Hour Captain ——0.80 0.80 ——%
Administrative Assistant 1.00 1.00 1.00 1.00 ——%
Administrative Associate I 1.00 1.00 1.00 —(1.00)(100.0)%
Administrative Associate II*2.80 2.80 2.80 0.80 (2.00)(71.4)%
Administrative Associate III*4.00 3.00 4.80 7.80 3.00 62.5%
Assistant Chief Building Official***1.00 1.00 2.00 1.00 (1.00)(50.0)%
Assistant Director PCE 1.00 1.00 1.00 1.00 ——%
Associate Engineer 0.20 ——0.50 0.50 —%
Associate Planner 3.00 3.25 1.25 1.25 ——%
Building Inspector Specialist 6.00 6.00 8.00 —(8.00)(100.0)%
Building/Planning Technician 3.00 2.00 2.50 2.50 ——%
Chief Building Official 1.00 1.00 1.00 1.00 ——%
Chief Planning Official 1.00 1.00 1.00 1.00 ——%
Code Enforcement Officer 2.00 —1.00 1.00 ——%
Code Enforcement-Lead 1.00 1.00 1.00 1.00 ——%
Deputy Chief/Fire Marshal 0.80 0.80 ————%
Table of Organization
FY 2021
Actuals
FY 2022
Actuals
FY 2023
Adopted
Budget
FY 2024
Adjusted
Budget***
FY 2024
Change
FTE
FY 2024
Change %
7
ATTACHMENT B
Item 11
Attachment B - Amended
FY 2024 Table of
Organization
Item 11: Staff Report Pg. 37 Packet Pg. 334 of 428
TABLE OF ORGANIZATION
Development Project Coordinator II 2.00 2.00 2.00 2.00 ——%
Development Project Coordinator III 3.00 3.00 3.00 3.00 ——%
Director Planning/Community Environment 1.00 1.00 1.00 1.00 ——%
Division Manager Planning***———1.00 ——%
Engineer 0.52 0.52 0.52 0.52 ——%
Engineering Technician III 1.50 1.50 1.50 1.00 (0.50)(33.3)%
Fire Inspector 3.20 1.60 1.60 1.60 ——%
Fire Marshal ——0.80 0.80 ——%
Hazardous Materials Inspector 1.60 1.60 3.20 3.20 ——%
Industrial Waste Investigator 0.35 0.35 0.35 0.35 ——%
Inspector, Field Services 0.68 0.68 0.68 0.68 ——%
Landscape Architect Park Planner 0.50 0.50 0.50 0.50 ——%
Manager Planning 4.00 4.00 4.00 4.00 ——%
Planner 4.00 4.00 5.00 5.00 ——%
Plans Check Engineer ——1.00 1.00 ——%
Principal Planner 2.00 1.00 2.00 2.00 ——%
Program Assistant I 1.00 —————%
Project Engineer 0.10 —————%
Project Manager ——0.50 0.50 ——%
Senior Building Inspector**———8.00 8.00 —%
Senior Business Analyst 1.00 1.00 1.00 1.00 ——%
Senior Engineer 0.40 0.40 0.45 0.45 ——%
Senior Management Analyst 2.00 2.00 2.00 2.00 ——%
Senior Plan Check Engineer**———2.00 2.00 —%
Senior Planner*,***3.60 3.65 4.65 8.65 4.00 86.0%
Supervisor Inspection and Surveying 0.25 0.25 0.25 0.25 ——%
Supervisor of Code Enforcement**———1.00 1.00 —%
Table of Organization
FY 2021
Actuals
FY 2022
Actuals
FY 2023
Adopted
Budget
FY 2024
Adjusted
Budget***
FY 2024
Change
FTE
FY 2024
Change %
8
ATTACHMENT B
Item 11
Attachment B - Amended
FY 2024 Table of
Organization
Item 11: Staff Report Pg. 38 Packet Pg. 335 of 428
TABLE OF ORGANIZATION
Traffic Engineering-Lead 0.10 0.05 ————%
Transportation Planning Manager —0.05 0.05 0.05 ——%
Total Planning and Development Services 61.60 54.00 65.20 72.20 7.00 10.7%
Police
Administrative Assistant 1.00 1.00 1.00 1.00 ——%
Administrative Associate II 3.00 2.00 2.00 3.00 1.00 50.0%
Animal Control Officer 3.00 2.00 2.00 2.00 ——%
Animal Control Officer-Lead 1.00 1.00 1.00 1.00 ——%
Assistant Police Chief 1.00 1.00 1.00 1.00 ——%
Business Analyst 1.20 1.20 2.20 2.20 ——%
Code Enforcement Officer 1.00 1.00 1.00 1.00 ——%
Communications Manager 1.00 —————%
Communications Technician 1.00 —————%
Community Service Officer 7.50 5.63 5.63 5.63 ——%
Court Liaison Officer*1.00 1.00 1.00 2.00 1.00 100.0%
Crime Analyst 1.00 1.00 1.00 1.00 ——%
Deputy Director Technical Services Division 0.80 —0.80 0.80 ——%
Geographic Information System Specialist 0.50 0.50 0.50 0.50 ——%
Police Agent 19.00 19.00 19.00 19.00 ——%
Police Captain 2.00 2.00 2.00 2.00 ——%
Police Chief 1.00 1.00 1.00 1.00 ——%
Police Lieutenant 5.00 4.00 4.00 4.00 ——%
Police Officer 50.00 39.00 43.00 45.00 2.00 4.7%
Police Records Specialist II 6.00 6.00 6.00 6.00 ——%
Police Records Specialist-Lead 1.00 1.00 1.00 1.00 ——%
Police Sergeant 14.00 14.00 14.00 14.00 ——%
Table of Organization
FY 2021
Actuals
FY 2022
Actuals
FY 2023
Adopted
Budget
FY 2024
Adjusted
Budget***
FY 2024
Change
FTE
FY 2024
Change %
9
ATTACHMENT B
Item 11
Attachment B - Amended
FY 2024 Table of
Organization
Item 11: Staff Report Pg. 39 Packet Pg. 336 of 428
TABLE OF ORGANIZATION
Program Assistant II 1.00 1.00 1.00 1.00 ——%
Property Evidence Technician 2.00 2.00 2.00 2.00 ——%
Public Safety Communications Manager 1.00 —1.00 1.00 ——%
Public Safety Dispatcher 16.00 12.00 14.00 16.00 2.00 14.3%
Public Safety Dispatcher-Lead 4.00 4.00 4.00 4.00 ——%
Public Safety Program Manager 2.00 1.00 1.00 1.00 ——%
Senior Management Analyst 1.00 1.00 1.00 1.00 ——%
Total Police 149.00 124.33 133.13 139.13 6.00 4.5%
Public Works
Administrative Assistant 1.00 0.50 0.50 0.50 ——%
Administrative Associate I 0.10 —————%
Administrative Associate II 2.65 2.65 2.65 2.65 ——%
Administrative Associate III 0.01 —————%
Assistant Director Public Works 0.73 0.73 0.73 0.73 ——%
Associate Engineer ———0.45 0.45 —%
Building Serviceperson-Lead 1.00 1.00 1.00 1.00 ——%
Building/Planning Technician ——0.50 0.50 ——%
Cement Finisher 2.00 2.00 2.00 2.00 ——%
Cement Finisher-Lead 0.26 0.26 0.26 0.26 ——%
Coordinator Public Works Projects 1.50 1.50 1.50 1.50 ——%
Director Public Works/City Engineer 1.00 1.00 1.00 1.00 ——%
Electrician 0.80 0.80 0.80 0.80 ——%
Engineer 0.48 0.48 0.48 0.48 ——%
Engineering Technician III 1.75 1.75 1.75 1.80 0.05 2.9%
Environmental Specialist ——0.33 0.33 ——%
Equipment Operator 2.46 2.46 2.46 2.46 ——%
Table of Organization
FY 2021
Actuals
FY 2022
Actuals
FY 2023
Adopted
Budget
FY 2024
Adjusted
Budget***
FY 2024
Change
FTE
FY 2024
Change %
10
ATTACHMENT B
Item 11
Attachment B - Amended
FY 2024 Table of
Organization
Item 11: Staff Report Pg. 40 Packet Pg. 337 of 428
TABLE OF ORGANIZATION
Facilities Carpenter 1.00 1.00 1.00 1.00 ——%
Facilities Maintenance-Lead 1.85 1.85 1.85 1.85 ——%
Facilities Painter 1.75 1.75 1.75 1.75 ——%
Facilities Technician 4.05 4.05 4.05 5.05 1.00 24.7%
Heavy Equipment Operator 2.33 2.10 2.10 2.10 ——%
Heavy Equipment Operator-Lead 0.85 0.85 0.85 0.85 ——%
Inspector, Field Services 0.11 0.11 0.11 0.11 ——%
Landscape Architect Park Planner 0.60 0.60 0.60 0.60 ——%
Management Analyst 1.45 1.45 0.70 0.70 ——%
Manager Environmental Control Program ——0.33 0.33 ——%
Manager Facilities 0.90 0.90 0.90 0.90 ——%
Manager Maintenance Operations 1.20 1.20 1.20 1.20 ——%
Manager Urban Forestry 1.00 1.00 1.00 1.00 ——%
Manager Watershed Protection 0.05 0.05 0.05 0.05 ——%
Project Manager 2.65 2.00 2.50 2.85 0.35 14.0%
Senior Engineer 0.60 0.60 0.60 0.60 ——%
Senior Management Analyst 1.11 1.11 1.11 1.11 ——%
Supervisor Inspection and Surveying 0.10 0.10 0.10 0.10 ——%
Surveyor, Public Works 0.33 0.33 0.33 0.33 ——%
Traffic Controller Maintainer I 1.94 1.94 1.94 1.94 ——%
Traffic Controller Maintainer II 2.00 1.00 1.00 1.00 ——%
Tree Maintenance Person 1.00 1.00 1.00 1.00 ——%
Tree Trim/Line Clear 7.00 7.00 7.00 7.00 ——%
Tree Trim/Line Clear-Lead 1.00 1.00 1.00 1.00 ——%
WGW Heavy Equipment Operator —0.23 0.23 0.23 ——%
Total Public Works 50.61 48.35 49.26 51.11 1.85 3.8%
Total General Fund 574.43 506.80 552.81 587.06 34.25 6.2%
Table of Organization
FY 2021
Actuals
FY 2022
Actuals
FY 2023
Adopted
Budget
FY 2024
Adjusted
Budget***
FY 2024
Change
FTE
FY 2024
Change %
11
ATTACHMENT B
Item 11
Attachment B - Amended
FY 2024 Table of
Organization
Item 11: Staff Report Pg. 41 Packet Pg. 338 of 428
TABLE OF ORGANIZATION
Enterprise Fund
Public Works
Account Specialist 0.30 —————%
Accountant 0.40 0.70 0.70 0.70 ——%
Administrative Associate I 0.10 —1.00 1.00 ——%
Administrative Associate II 2.15 2.15 2.15 2.15 ——%
Administrative Associate III 0.10 0.20 0.20 0.20 ——%
Airport Specialist II ———2.50 2.50 —%
Assistant Director Public Works 1.30 1.30 1.30 1.30 ——%
Assistant Manager WQCP 2.00 2.00 2.00 2.00 ——%
Associate Engineer 3.00 3.00 3.00 3.05 0.05 1.7%
Chemist 3.00 2.00 2.00 3.00 1.00 50.0%
Deputy Chief/Fire Marshal 0.07 0.07 ————%
Electrician 3.00 3.00 3.00 3.00 ——%
Electrician-Lead 2.00 2.00 2.00 2.00 ——%
Engineer 0.90 0.90 0.90 1.90 1.00 111.1%
Engineering Technician III 0.25 0.25 0.25 0.20 (0.05)(20.0)%
Environmental Specialist 2.00 2.00 2.33 2.33 ——%
Equipment Operator 0.54 0.54 0.54 0.54 ——%
Facilities Maintenance Lead 1.00 1.00 1.00 1.00 ——%
Facilities Technician 1.50 1.50 2.50 —(2.50)(100.0)%
Fire Marshal ——0.07 0.07 ——%
Hazardous Materials Inspector 0.04 0.04 0.04 0.04 ——%
Heavy Equipment Operator 0.90 0.90 0.90 0.90 ——%
Heavy Equipment Operator-Lead 1.15 1.15 1.15 1.15 ——%
Industrial Waste Inspector 3.00 3.00 3.00 3.00 ——%
Table of Organization
FY 2021
Actuals
FY 2022
Actuals
FY 2023
Adopted
Budget
FY 2024
Adjusted
Budget***
FY 2024
Change
FTE
FY 2024
Change %
12
ATTACHMENT B
Item 11
Attachment B - Amended
FY 2024 Table of
Organization
Item 11: Staff Report Pg. 42 Packet Pg. 339 of 428
TABLE OF ORGANIZATION
Industrial Waste Investigator 1.15 1.15 1.15 1.15 ——%
Laboratory Technician WQC 3.00 3.00 3.00 3.00 ——%
Landfill Technician 1.00 1.00 1.00 2.00 1.00 100.0%
Management Analyst 2.30 2.30 2.30 2.30 ——%
Manager Airport 1.00 1.00 1.00 1.00 ——%
Manager Environmental Control Program 5.00 5.00 5.33 5.33 ——%
Manager Laboratory Services 1.00 1.00 1.00 1.00 ——%
Manager Maintenance Operations 1.96 1.96 1.96 1.96 ——%
Manager Solid Waste 1.00 1.00 1.00 1.00 ——%
Manager Water Quality Control Plant 1.00 1.00 1.00 1.00 ——%
Manager Watershed Protection 0.95 0.95 0.95 0.95 ——%
Plant Mechanic 7.00 7.00 7.00 7.00 ——%
Program Assistant I 1.00 1.00 1.00 1.00 ——%
Program Assistant II 2.00 2.00 2.00 2.00 ——%
Project Engineer 1.83 1.83 1.83 2.83 1.00 54.6%
Project Manager 1.35 1.35 1.35 1.35 ——%
Senior Accountant 0.30 0.30 0.30 0.30 ——%
Senior Buyer 1.00 1.00 1.00 1.00 ——%
Senior Chemist 1.00 2.00 2.00 2.00 ——%
Senior Engineer 3.76 3.76 3.76 3.76 ——%
Senior Industrial Waste Investigator 1.00 1.00 1.00 1.00 ——%
Senior Management Analyst 0.21 0.21 0.21 0.21 ——%
Senior Mechanic 1.00 1.00 1.00 1.00 ——%
Senior Operator WQC 6.00 6.00 6.00 6.00 ——%
Senior Technologist 1.00 1.00 1.00 1.00 ——%
Storekeeper 1.00 1.00 1.00 1.00 ——%
Street Maintenance Assistant 1.00 1.00 1.00 —(1.00)(100.0)%
Table of Organization
FY 2021
Actuals
FY 2022
Actuals
FY 2023
Adopted
Budget
FY 2024
Adjusted
Budget***
FY 2024
Change
FTE
FY 2024
Change %
13
ATTACHMENT B
Item 11
Attachment B - Amended
FY 2024 Table of
Organization
Item 11: Staff Report Pg. 43 Packet Pg. 340 of 428
TABLE OF ORGANIZATION
Street Sweeper Operator 1.63 1.63 1.63 1.63 ——%
Supervisor WQCP Operations 3.00 3.00 3.00 3.00 ——%
Surveyor, Public Works 0.12 0.12 0.12 0.12 ——%
Technologist 1.00 1.00 1.00 1.00 ——%
Traffic Controller Maintainer I 0.06 0.06 0.06 0.06 ——%
WQC Plant Operator II 16.00 16.00 16.00 16.00 ——%
Zero Waste Coordinator 1.00 1.00 1.00 1.00 ——%
Total Public Works 101.32 101.32 103.98 106.98 3.00 2.9%
Utilities
Account Specialist 1.70 1.00 1.00 1.00 ——%
Accountant 0.60 1.30 1.30 1.30 ——%
Administrative Assistant 1.00 1.00 1.00 1.00 ——%
Administrative Associate II 6.00 6.00 6.00 6.00 ——%
Assistant City Attorney ——1.00 2.00 1.00 100.0%
Assistant Director Administrative Services 0.25 0.25 0.25 0.25 ——%
Assistant Director Sustainability and Climate
Action
———1.00 1.00 —%
Assistant Director Utilities Customer Support
Services
1.00 1.00 1.00 2.00 1.00 100.0%
Assistant Director Utilities Engineering 1.00 1.00 1.00 1.00 ——%
Assistant Director Utilities Operations 1.00 1.00 1.00 1.00 ——%
Assistant Director Utilities/Resource
Management
1.00 1.00 1.00 1.00 ——%
Associate Sustainability Program Administrator ——1.00 1.00 ——%
Business Analyst 6.00 6.00 6.00 6.00 ——%
Cathodic Protection Technician Assistant 1.00 1.00 1.00 1.00 ——%
Cathodic Technician 1.00 1.00 1.00 1.00 ——%
Cement Finisher 2.00 2.00 2.00 2.00 ——%
Table of Organization
FY 2021
Actuals
FY 2022
Actuals
FY 2023
Adopted
Budget
FY 2024
Adjusted
Budget***
FY 2024
Change
FTE
FY 2024
Change %
14
ATTACHMENT B
Item 11
Attachment B - Amended
FY 2024 Table of
Organization
Item 11: Staff Report Pg. 44 Packet Pg. 341 of 428
TABLE OF ORGANIZATION
Contracts Administrator 0.70 0.70 0.70 0.70 ——%
Coordinator Utilities Projects 6.00 6.00 8.00 8.00 ——%
Customer Service Representative 7.00 7.00 7.00 7.00 ——%
Customer Service Specialist 2.00 2.00 2.00 2.00 ——%
Customer Service Specialist-Lead 2.00 2.00 2.00 2.00 ——%
Deputy Chief/Fire Marshal 0.08 0.08 ————%
Deputy City Attorney 1.00 1.00 —0.50 0.50 —%
Director Administrative Services/CFO 0.20 0.20 0.20 0.20 ——%
Electric Heavy Equipment Operator 2.00 2.00 1.00 1.00 ——%
Electric Project Engineer 4.00 4.00 8.00 8.00 ——%
Electric Underground Inspector 2.00 2.00 2.00 2.00 ——%
Electric Underground Inspector-Lead 1.00 1.00 1.00 1.00 ——%
Electrical Equipment Technician 1.00 1.00 1.00 1.00 ——%
Electrician Assistant I 3.00 3.00 3.00 3.00 ——%
Engineer 4.00 4.00 4.00 5.00 1.00 25.0
Engineering Manager - Electric 1.00 1.00 1.00 1.00 ——%
Engineering Manager - WGW 1.00 1.00 1.00 1.00 ——%
Engineering Technician III 3.00 3.00 3.00 3.00 ——%
Environmental Specialist ——0.34 0.34 ——%
Equipment Operator ——1.00 1.00 ——%
Fire Marshal ——0.08 0.08 ——%
Gas and Water Meter Measurement and
Control Technician
4.00 4.00 4.00 4.00 ——%
Gas and Water Meter Measurement and
Control Technician - Lead
1.00 1.00 1.00 1.00 ——%
Hazardous Materials Inspector 0.06 0.06 0.06 0.06 ——%
Heavy Equipment Operator - Install/Repair 4.00 4.00 4.00 4.00 ——%
Human Resources Representative —1.00 1.00 1.00 ——%
Table of Organization
FY 2021
Actuals
FY 2022
Actuals
FY 2023
Adopted
Budget
FY 2024
Adjusted
Budget***
FY 2024
Change
FTE
FY 2024
Change %
15
ATTACHMENT B
Item 11
Attachment B - Amended
FY 2024 Table of
Organization
Item 11: Staff Report Pg. 45 Packet Pg. 342 of 428
TABLE OF ORGANIZATION
Industrial Waste Investigator 0.50 0.50 0.50 0.50 ——%
Inspector, Field Services 5.00 —————%
Inspector, WGW Utilities Field Svc —5.00 5.00 5.00 ——%
Lineperson/Cable Specialist 10.00 10.00 10.00 10.00 ——%
Lineperson/Cable Specialist-Lead 4.00 4.00 4.00 4.00 ——%
Maintenance Mechanic-Welding 2.00 2.00 2.00 2.00 ——%
Management Analyst ——1.00 1.00 ——%
Manager Communications 1.00 1.00 1.00 1.00 ——%
Manager Customer Service 1.00 1.00 1.00 1.00 ——%
Manager Electric Operations 1.00 1.00 1.00 1.00 ——%
Manager Environmental Control Program ——0.34 0.34 ——%
Manager Information Technology ———1.00 1.00 —%
Manager Treasury, Debt & Investments 0.40 0.40 0.40 0.40 ——%
Manager Utilities Compliance 1.00 1.00 1.00 1.00 ——%
Manager Utilities Credit & Collection 1.00 1.00 1.00 1.00 ——%
Manager Utilities Operations WGW 1.00 1.00 1.00 1.00 ——%
Manager Utilities Program Services 1.00 1.00 2.00 2.00 ——%
Manager Utilities Strategic Business 1.00 1.00 1.00 1.00 ——%
Manager Utilities Telecommunications 1.00 1.00 1.00 3.00 2.00 200.0%
Meter Reader 6.00 6.00 6.00 5.00 (1.00)(16.7)%
Meter Reader-Lead 1.00 1.00 1.00 1.00 ——%
Metering Technician 3.00 3.00 2.00 2.00 ——%
Metering Technician-Lead 1.00 1.00 1.00 1.00 ——%
Offset Equipment Operator 0.48 0.48 0.48 0.48 ——%
Overhead Underground Troubleman 2.00 2.00 2.00 2.00 ——%
Power Engineer 1.00 1.00 ————%
Principal Business Analyst 1.00 1.00 1.00 1.00 ——%
Table of Organization
FY 2021
Actuals
FY 2022
Actuals
FY 2023
Adopted
Budget
FY 2024
Adjusted
Budget***
FY 2024
Change
FTE
FY 2024
Change %
16
ATTACHMENT B
Item 11
Attachment B - Amended
FY 2024 Table of
Organization
Item 11: Staff Report Pg. 46 Packet Pg. 343 of 428
TABLE OF ORGANIZATION
Principal Utilities Program Manager ——1.00 —(1.00)(100.0)%
Program Assistant I 1.50 1.50 1.50 2.00 0.50 33.3%
Program Assistant II 1.00 1.00 ————%
Project Engineer 5.00 5.00 5.00 5.00 ——%
Project Manager 0.75 0.75 0.75 0.75 ——%
Resource Planner 5.00 5.00 5.00 5.00 ——%
Restoration Lead 1.00 1.00 1.00 1.00 ——%
SCADA Technologist 2.00 2.00 ————%
Senior Accountant 0.70 0.70 0.70 0.70 ——%
Senior Business Analyst 3.00 3.00 3.00 3.00 ——%
Senior Electrical Engineer 4.00 5.00 5.00 5.00 ——%
Senior Engineer 5.00 5.00 6.00 5.00 (1.00)(16.7)%
Senior Management Analyst 0.70 0.70 0.70 0.70 ——%
Senior Marketing Analyst ———1.00 1.00 —%
Senior Mechanic 1.00 1.00 1.00 1.00 ——%
Senior Performance Auditor 1.00 —————%
Senior Resource Planner 6.50 6.50 7.00 7.00 ——%
Senior Utilities Field Service Representative 1.00 1.00 1.00 1.00 ——%
Senior Utilities System Operator**———1.00 1.00 —%
Senior Water Systems Operator 2.00 2.00 2.00 2.00 ——%
Storekeeper 1.00 1.00 1.00 1.00 ——%
Storekeeper-Lead 0.80 0.80 0.80 0.80 ——%
Street Light, Traffic Signal & Fiber Technician 5.00 5.00 4.00 4.00 ——%
Street Light, Traffic Signal & Fiber-Lead 2.00 2.00 2.00 2.00 ——%
Substation Electrician 6.00 6.00 6.00 6.00 ——%
Substation Electrician-Lead 2.00 2.00 2.00 2.00 ——%
Supervising Electric Project Engineer 1.00 —————%
Table of Organization
FY 2021
Actuals
FY 2022
Actuals
FY 2023
Adopted
Budget
FY 2024
Adjusted
Budget***
FY 2024
Change
FTE
FY 2024
Change %
17
ATTACHMENT B
Item 11
Attachment B - Amended
FY 2024 Table of
Organization
Item 11: Staff Report Pg. 47 Packet Pg. 344 of 428
TABLE OF ORGANIZATION
Sustainability Programs Administrator —4.00 5.00 5.00 ——%
Tree Maintenance Person 1.00 1.00 1.00 1.00 ——%
Utilities Chief Operating Officer 1.00 1.00 1.00 1.00 ——%
Utilities Compliance Technician 3.00 3.00 3.00 3.00 ——%
Utilities Compliance Technician-Lead 1.00 1.00 1.00 1.00 ——%
Utilities Credit/Collection Specialist 2.00 2.00 2.00 2.00 ——%
Utilities Director 1.00 1.00 1.00 1.00 ——%
Utilities Engineer Estimator 5.00 5.00 5.00 5.00 ——%
Utilities Field Services Representative 5.00 5.00 5.00 5.00 ——%
Utilities Install Repair-Lead-Welding Certified 2.00 2.00 3.00 3.00 ——%
Utilities Install Repair-Welding Certified 3.00 3.00 3.00 3.00 ——%
Utilities Install/Repair 10.00 10.00 10.00 10.00 ——%
Utilities Install/Repair Assistant 1.00 1.00 1.00 1.00 ——%
Utilities Install/Repair-Lead 5.00 5.00 4.00 4.00 ——%
Utilities Key Account Representative 3.00 3.00 3.00 3.00 ——%
Utilities Locator 3.00 3.00 3.00 3.00 ——%
Utilities Marketing Program Administrator 4.00 —————%
Utilities Safety Officer 1.00 1.00 1.00 1.00 ——%
Utilities Supervisor 12.00 12.00 12.00 12.00 ——%
Utilities System Analyst ——2.00 2.00 ——%
Utilities System Operator 5.00 5.00 6.00 5.00 (1.00)(16.7)%
Utility Engineering Estimator - Lead 1.00 1.00 1.00 1.00 ——%
Warehouse Supervisor 0.80 0.80 0.80 0.80 ——%
Water System Operator II 4.00 4.00 4.00 4.00 ——%
WGW Heavy Equipment Operator 4.70 4.70 4.70 4.70 ——%
Total Utilities 257.42 257.42 267.60 273.60 6.00 2.2%
Total Enterprise Fund 358.74 358.74 371.58 380.58 9.00 2.4%
Table of Organization
FY 2021
Actuals
FY 2022
Actuals
FY 2023
Adopted
Budget
FY 2024
Adjusted
Budget***
FY 2024
Change
FTE
FY 2024
Change %
18
ATTACHMENT B
Item 11
Attachment B - Amended
FY 2024 Table of
Organization
Item 11: Staff Report Pg. 48 Packet Pg. 345 of 428
TABLE OF ORGANIZATION
Other Funds
Capital Project Fund
Administrative Assistant 0.15 0.65 0.65 0.65 ——%
Administrative Associate I 0.80 —————%
Administrative Associate III 0.89 0.80 0.80 0.80 ——%
Assistant Director Public Works 0.72 0.72 0.72 0.72 ——%
Associate Engineer 2.50 1.65 1.65 1.65 ——%
Associate Planner 0.30 0.35 0.35 0.35 ——%
Building Serviceperson 1.00 1.00 1.00 —(1.00)(100.0)%
Building Serviceperson-Lead 1.40 1.40 1.40 —(1.40)(100.0)%
Cement Finisher-Lead 0.74 0.74 0.74 0.74 ——%
Chief Transportation Official 0.30 0.30 0.30 0.30 ——%
Contracts Administrator 0.60 0.60 0.60 0.60 ——%
Coordinator Public Works Projects 1.30 1.30 1.30 1.30 ——%
Coordinator Transportation Systems
Management
0.75 1.35 1.35 1.35 ——%
Engineer 3.10 2.10 3.10 3.10 ——%
Engineering Technician III 0.50 0.50 0.50 0.50 ——%
Facilities Technician 1.50 1.50 1.50 1.50 ——%
Inspector, Field Services 1.21 1.21 1.21 1.21 ——%
Landscape Architect Park Planner 0.90 0.90 0.90 0.90 ——%
Management Analyst*0.95 0.95 0.95 0.80 (0.15)(15.8)%
Manager Facilities 0.10 0.10 0.10 0.10 ——%
Manager Maintenance Operations 0.65 0.65 0.65 0.65 ——%
Parking Operations-Lead 0.40 0.30 0.30 0.30 ——%
Project Engineer 7.62 7.92 7.92 7.92 ——%
Project Manager 1.15 0.80 0.80 1.45 0.65 81.3%
Table of Organization
FY 2021
Actuals
FY 2022
Actuals
FY 2023
Adopted
Budget
FY 2024
Adjusted
Budget***
FY 2024
Change
FTE
FY 2024
Change %
19
ATTACHMENT B
Item 11
Attachment B - Amended
FY 2024 Table of
Organization
Item 11: Staff Report Pg. 49 Packet Pg. 346 of 428
TABLE OF ORGANIZATION
Senior Engineer 4.04 4.04 4.64 4.64 ——%
Senior Management Analyst*0.60 0.60 0.60 0.75 0.15 25.0%
Senior Planner 0.50 0.80 0.80 1.55 0.75 93.8%
Supervisor Inspection and Surveying 0.65 0.65 0.65 0.65 ——%
Surveyor, Public Works 0.55 0.55 0.55 0.55 ——%
Traffic Engineering-Lead 0.55 0.60 ————%
Transportation Planning Manager 0.35 0.45 0.45 0.45 ——%
Total Capital Project Fund 36.77 35.48 36.48 35.48 (1.00)(2.7)%
General Liabilities Insurance Program Fund
Senior Management Analyst ———1.00 1.00 —%
Total General Liabilities Insurance Program
Fund
———1.00 1.00 —%
Printing and Mailing Services
Manager Revenue Collections 0.10 0.10 0.10 0.10 ——%
Offset Equipment Operator 1.52 1.52 1.52 1.52 ——%
Total Printing and Mailing Services 1.62 1.62 1.62 1.62 ——%
Special Revenue Funds
Account Specialist 1.87 1.37 1.37 1.37 ——%
Account Specialist-Lead 0.55 0.55 0.55 0.55 ——%
Administrative Assistant 0.35 0.25 0.25 0.25 ——%
Administrative Associate II 0.20 0.20 0.20 0.20 ——%
Associate Planner 0.25 —————%
Community Service Officer 0.50 0.37 0.37 0.37 ——%
Coordinator Public Works Projects 0.20 0.20 0.20 0.20 ——%
Electrician 0.20 0.20 0.20 0.20 ——%
Facilities Maintenance-Lead 0.15 0.15 0.15 0.15 ——%
Table of Organization
FY 2021
Actuals
FY 2022
Actuals
FY 2023
Adopted
Budget
FY 2024
Adjusted
Budget***
FY 2024
Change
FTE
FY 2024
Change %
20
ATTACHMENT B
Item 11
Attachment B - Amended
FY 2024 Table of
Organization
Item 11: Staff Report Pg. 50 Packet Pg. 347 of 428
TABLE OF ORGANIZATION
Facilities Painter 0.25 0.25 0.25 0.25 ——%
Facilities Technician 0.45 0.45 0.45 0.45 ——%
Management Analyst*0.35 0.35 0.35 —(0.35)(100.0)%
Manager Community Services Senior Program 1.00 1.00 1.00 1.00 ——%
Manager Maintenance Operations 0.19 0.19 0.19 0.19 ——%
Manager Revenue Collections 0.28 0.28 0.28 0.28 ——%
Parking Operations-Lead 0.60 0.65 0.65 0.65 ——%
Senior Management Analyst*———0.35 0.35 —%
Senior Planner 0.40 0.40 0.40 0.40 ——%
Street Maintenance Assistant 2.00 2.00 2.00 2.00 ——%
Street Sweeper Operator 0.37 0.37 0.37 0.37 ——%
Transportation Planning Manager 0.50 0.50 0.50 0.50 ——%
Total Special Revenue Funds 10.66 9.73 9.73 9.73 ——%
Technology Fund
Administrative Assistant 1.00 1.00 1.00 1.00 ——%
Assistant Director Administrative Services 0.10 0.10 0.10 0.10 ——%
Business Analyst 1.00 1.00 1.00 1.00 ——%
Desktop Technician 6.00 6.00 6.00 6.00 ——%
Director Information Technology/CIO 1.00 1.00 1.00 1.00 ——%
Management Analyst ———1.00 1.00 —%
Manager Information Technology 3.00 3.00 3.00 3.00 ——%
Manager Information Technology Security 1.00 —————%
Principal Business Analyst 1.00 —————%
Senior Business Analyst 2.00 2.00 2.00 2.00 ——%
Senior Management Analyst 1.00 1.00 1.00 1.00 ——%
Senior Technologist*18.00 14.00 16.00 17.00 1.00 6.3%
Table of Organization
FY 2021
Actuals
FY 2022
Actuals
FY 2023
Adopted
Budget
FY 2024
Adjusted
Budget***
FY 2024
Change
FTE
FY 2024
Change %
21
ATTACHMENT B
Item 11
Attachment B - Amended
FY 2024 Table of
Organization
Item 11: Staff Report Pg. 51 Packet Pg. 348 of 428
TABLE OF ORGANIZATION
*The FY 2023 Adopted Budget does not include City Council actions to amend staffing levels approved in the FY 2023 Mid-Year
Budget Review (CMR 2212-0515). These positions appear as a base adjustment in the FY 2024 Adopted Budget.
**The FY 2024 Budget includes new job classifications that require completion of appropriate review and potential discussions with
bargaining groups. Proposals in this budget include estimated funding levels for financial planning purposes only and do not
reflect the final terms of the proposed classifications.
***Adjustments recommended in the FY 2024 Midyear Budget Review (2311-2233).
Technologist 1.00 —————%
Total Technology Fund 36.10 29.10 31.10 33.10 2.00 6.4%
Vehicle Replacement and Maintenance Fund
Assistant Director Public Works 0.25 0.25 0.25 0.25 ——%
Assistant Fleet Manager 1.00 1.00 1.00 1.00 ——%
Equipment Maintenance Service Person 2.00 1.00 1.00 2.00 1.00 100.0%
Fleet Services Coordinator 1.00 1.00 1.00 2.00 1.00 100.0%
Management Analyst 0.20 0.20 0.20 0.20 ——%
Management Assistant 1.00 1.00 1.00 1.00 ——%
Manager Fleet 1.00 1.00 1.00 1.00 ——%
Motor Equipment Mechanic II 6.00 5.00 5.00 5.00 ——%
Motor Equipment Mechanic-Lead 2.00 2.00 2.00 1.00 (1.00)(50.0)%
Project Manager 1.00 1.00 1.00 1.00 ——%
Senior Management Analyst 0.08 0.08 0.08 0.08 ——%
Total Vehicle Replacement and
Maintenance Fund
15.53 13.53 13.53 14.53 1.00 7.4%
Workers' Compensation Program Fund
Senior Human Resources Administrator 1.00 1.00 1.00 1.00 ——%
Total Workers’ Compensation Program
Fund
1.00 1.00 1.00 1.00 ——%
Total Other Funds 101.68 90.46 93.46 96.46 3.00 3.2%
Total Citywide Positions 1,034.85 956.00 1,017.85 1,064.10 46.25 4.5%
Table of Organization
FY 2021
Actuals
FY 2022
Actuals
FY 2023
Adopted
Budget
FY 2024
Adjusted
Budget***
FY 2024
Change
FTE
FY 2024
Change %
22
ATTACHMENT B
Item 11
Attachment B - Amended
FY 2024 Table of
Organization
Item 11: Staff Report Pg. 52 Packet Pg. 349 of 428
Attachment C
Attachment C – Page 1 of 7
Preliminary FY 2024 2nd Quarter Financial Status
General Fund
Overall, the General Fund is tracking closely to adopted estimated revenues and at or below
adopted expenses. Actual total revenue increased slightly compared to the same period in fiscal
year 2023. Though data continues to be uncertain as 2nd Quarter data will not be finalized until
March 2024, staff believe recommended adjustments are measured and align more closely with
the current financial outlook.
Revenues
The FY 2024 Adopted revenue budget totals $237.1 million (excluding Operating Transfers‐in),
of which $93.3 million or 38.4% of the budget, has been collected as of the end of the 2nd
quarter. Overall, tax revenue estimates in the FY 2024 Adopted budget are $ 10 million higher
than the FY 2023 Adjusted revenue, from approximately $141 million to $151 million.
Adjustments to align revenue with estimates included in the FY 2025‐2034 Long Range Financial
Forecast are recommended in this Mid‐Year Budget Report, including adjustments for Sales Tax
($1.6 million increase), Utility Users Tax (UUT) ($1.2 million increase), Investment Earnings ($1.1
million increase), and Property Tax ($0.8 million increase), partially offset by Transient
Occupancy Tax (TOT) ($1.3 million decrease) and Documentary Transfer Tax (DTT) ($0.1 million
decrease) based on trends experienced in the first half of FY 2024.
Table 2 below outlines General Fund revenue performance, as of the end of the 2nd quarter,
compared to the adjusted budget. The adjusted budget does not assume staff’s recommended
adjustments presented in this Mid‐Year report.
Table 2
Revenues Inc / (Dec) % change FY 2024 % FY 2023 %
Property Tax $929 4.8% $63,785 32.0% $59,770 32.6%
Sales Tax 1,041 8.9% 36,272 35.1% 32,580 35.8%
Charges for Services (792) ‐5.2% 35,131 40.7% 30,786 49.1%
Transient Occupancy Tax 670 6.8% 26,834 39.1% 18,199 53.9%
Utility User Tax 539 6.7% 18,457 46.3% 15,579 51.4%
Permits and Licenses 2,087 66.9% 10,256 50.8% 9,794 31.9%
Documentary Transfer Tax 327 13.3% 5,920 47.1% 7,217 34.1%
Business Tax ‐ ‐ ‐ 1,660 0.0%‐ 0.0%
All Other Revenue Sources (2,267) ‐10.7% 44,856 42.2% 41,851 50.7%
Total Revenue 2,534 2.8% $243,171 38.4% $215,776 42.1%
General Fund Revenue
FY 2024 2nd Quarter YTD
(000's)
2nd Quarter Actuals Adjusted Budget
FY 2024 FY 2023
$20,428 $19,499
12,715 11,674
14,313 15,105
10,479 9,809
8,550 8,011
$93,421 $90,887
5,208 3,121
2,791 2,464
18,937 21,204
‐
Item 11
Attachment C -
Preliminary FY 2024 2nd
Quarter Financial Status
Item 11: Staff Report Pg. 53 Packet Pg. 350 of 428
Attachment C
Attachment C – Page 2 of 7
Property Tax
The FY 2024 Adopted Budget is $63.8 million, a $0.7 million or 1.1% increase from the FY 2023
actual receipts of $63.1 million. Transfer of ownership has been a significant driver of growth;
however, this growth is expected to moderate due to economic slowdown and higher mortgage
interest rates. For example, the median sales price for a single‐family residential home in the 1st
quarter declined by 3% compared to the previous quarter. Staff recommends a modest $0.8
million increase in this Mid‐Year report.
As of the end of FY 2023, the reserve for Excess Education Revenue Augmentation Fund (ERAF),
representing the at‐risk amount related to the State Controller’s Office auditing finding on
Marin County, totaled $4.1 million. As of December 2023, the State Controller’s Office has
issued a negative audit finding against Marin County. The state’s assertion is former
Redevelopment Agency funds, which are now part of the regular property taxes, should be
excluded from the excess ERAF calculation. Marin County is challenging this finding and in late‐
December 2023, the County of Santa Clara filed a lawsuit against the State Controller’s Office
on this. The estimate is, if this audit finding is sustained, 22% of excess ERAF is at risk for fiscal
years 2021, 2022, 2023 and 2024. If the finding holds, the County of Santa Clara, as well as
other Excess ERAF counties, could face similar audit findings likely starting in FY 2025. This
reserve is consistent with prior year methodology of assumptions for this challenge.
Sales Tax
The FY 2024 Adopted Budget is $36.3 million, a slight decrease of 1.6% compared to the actual Sales Tax
receipts of $36.9 million in FY Sale Tax for the first four months of FY 2024 is 8.9% higher than the
same period of the prior year. During this period, inflation is still elevated but declining and
consumer spending has remained steady. The expectation is that consumer spending growth
will slow down but remain strong, so Sales Tax is anticipated to generate more than the
conservatively budgeted amount in FY 2024. Staff recommends increasing the budget by $1.6
million in this report.
Transient Occupancy Tax (TOT)
The FY 2024 Adopted Budget assumed an estimate of $26.8 million, a 5.1% increase from FY
2023 actual receipts of $25.5 million and slightly lower than the pre‐pandemic actuals of $25.7
million in FY 2019. TOT economic performance for the first five months of FY 2024 is 5.9%
higher than the same period of the prior year. Table 2 shows a 6.8% increase in TOT; however,
the primary driver of this increase is payment timing difference and does not reflect economic
performance. For the 2nd quarter, the average occupancy rate is 69.3% (prior year it was 73.2%)
and the average room rate is $246 (prior year it was $266). TOT revenue remained stagnant in
the 1st quarter, then experienced double digit growth in the first two months of the 2nd quarter.
Staff continues to monitor trends and conservatively estimates that TOT levels will remain flat
compared to FY 2023 actuals. Staff recommends a $1.3 million decrease to TOT revenue and a
corresponding reduction of $0.3 million to the transfer to the Capital Fund for funding allocated
for capital improvements.
Item 11
Attachment C -
Preliminary FY 2024 2nd
Quarter Financial Status
Item 11: Staff Report Pg. 54 Packet Pg. 351 of 428
Attachment C
Attachment C – Page 3 of 7
Utility User Tax (UUT)
The FY 2024 Adopted Budget assumed an estimate of $18.5 million, slightly lower than the
$18.8 million FY 2023 actual receipts. Actual UUT receipts in FY 2023 were above year end
estimated levels, due to commodity price increases which resulted in higher UUT revenue. As a
result, this trend continues in FY 2024 as 2nd quarter UUT revenue totals $8.6 million, or 46.3%
of the FY 2024 adjusted budget. Staff recommends increasing the budget by $1.2 million in this
report as a result of higher utility revenues.
Permits and Licenses
The FY 2024 Adopted Budget assumed an estimate of $10.7 million, slightly higher than the $9.8 million
FY 2023 Adjusted Budget. Cash receipts as of 2nd quarter total $5.2 million, or 50.8% of the FY
2024 adjusted budget and is $2.1 million, or 66.9%, higher compared to FY 2022 2nd quarter
revenue. The increased revenue levels for FY 2024 is driven by new construction and permit
activity.
Documentary Transfer Tax
The FY 2024 Adopted Budget is $5.9 million, an assumed decline of 18% from the FY 2023
Adjusted budgeted of $7.2 million. Cash receipts as of 2nd quarter total $2.8 million, or 47.1%
of the FY 2024 adjusted budget and is $0.3 million, or 13.3% higher compared to FY 2023 2nd
quarter revenue due to the higher total property sales value. This revenue source is highly
unpredictable, as it is dependent on the value of properties being sold. Staff continues to
monitor these receipts closely due to significant fluctuations that can occur anytime depending
on the real estate sales activity. The budgeted amount of $5.9 million is 2.9% higher than the
actual receipts of the prior year and expected to be realized. Staff recommends decreasing the
budget by $0.1 million in this report.
Business Tax
The FY 2024 Adopted Budget includes $2.4 million for Business Tax revenue across all funds and
as of the 2nd quarter, revenue collected totals $0.5 million. The first due date for the tax is
January 1st for the 2023 calendar year, with February 1st being the date that penalties and
interest will begin. In January 2024, an additional $0.5 million was collected. Staff will continue
to monitor collections and expect to begin compliance and enforcement activities in February
2024, before assessment and collection of the first quarter of calendar year 2024 begins. A
small increase of $41,000 in business tax revenue is recommended in this report to align with
increased contractual administration costs for business tax and business registry.
A technical correction is also recommended in this report to consolidate all business tax
revenue in the General Fund. As part of the FY 2024 Adopted Budget $0.8 million in business
tax revenue was budgeted in the Capital Improvement Fund to support transportation capital
projects. This report will move the budget for this $0.8 million to the General Fund and
establish a transfer of $0.8 million to the Capital Improvement program to maintain the
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Attachment C
Attachment C – Page 4 of 7
allocation of the funding in alignment with the Council's adopted Advisory Spending Resolution
to fund transportation and grade separation projects.
Charges for Services & Permits and Licenses
The FY 2024 Adopted Budget assumed an estimate of $34.6 million in Charges for Services, a
$4.0 million, or 13.1% increase, compared to the FY 2023 Adjusted Budget. The FY 2024
Adopted Budget assumed an estimate of $10.7 million in permit and license revenue, a $0.9
million or 9.2% increase compared to the FY 2023 Adjusted Budget. Together, these revenue
categories make up nearly half of all non‐tax revenues. In total, $42.5 million was received
during FY 2023, above the revised budget estimates by $2.0 million. These revenue categories
consist of charges to Stanford for fire services and paramedic services, fees related to the City’s
golf course, arts and science classes, plan check fees, Building Permits, Fire Permits, and
miscellaneous health and safety‐related licenses. Several minor adjustments to revenue in
Charges for Service are recommended in this report and discussed below; however, overall
revenues in these categories are in line with activity levels anticipated thus far.
Community Services (CSD): The demand for CSD programming remains at elevated
levels. Total departmental revenue through the end of the second quarter is
approximately $6.1 million or 47% of the FY 2024 total budgeted revenue. At this same
time last year, CSD’s total revenue was tracking at 46% of FY 2023 budgeted revenue
levels through the second quarter. CSD is recommending adjustments to an Art Center
program with high demand. Due to the popularity of art classes, the Kids and Teens
Studio Program has requested $50,000 in additional contract dollars to help meet
demand with an offset of $50,000 of increased revenue from class fees to remain cost‐
neutral.
Golf Course: Golf revenue continues to perform well in the first and second quarters of
FY 2024 and slightly higher by 2% from this time last year. This could be attributed to
better weather than FY23, which experienced several weeks of heavy rains which
deterred play both at the course and the driving range. Revenue guidance is
recommended to remain at its current budgeted level due to the unpredictability of
winter storms in the coming months. The proposed FY 2025 budget will reassess golf
revenue and expenditures based on additional information from third‐quarter results. In
addition, the division is working on a feasibility study of adding a second story to the
driving range with additional potential revenue as an element of the study. Projections
will be included as a part of future revenue estimates if that potential project moves
forward.
Junior Museum & Zoo (JMZ): Through the first two quarters of FY 2024, revenue is
roughly at 40% of budgeted levels (approximately $0.7 million in actual revenue vs. $1.6
million in budgeted revenue). Memberships remain the best‐performing revenue
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category (41% of FY 2024 target), while facilities rentals are the lowest performing (5%
of FY 24 target), reflecting similar trends as the prior year.
Staff is working with a consultant on a comprehensive operational analysis of the Palo
Alto Junior Museum and Zoo. The consultant is preparing a business plan to inform
ongoing operational and budgetary decisions. The study will examine financial,
operational, and programmatic status and make recommendations for future
operations to include ticket and membership prices, and how pricing will impact
consumer demand. Once the study is completed, staff will review the results and
present recommendations for financial and operational efficiencies to Council. In
addition, Staff is currently working with purchasing for a new reservation and ticketing
platform for the JMZ. Staff expects to implement the new system in 2024.
Development Services: Preliminary FY 2024 Development Services revenue is up 3.1%
compared to last year and is currently at 43.8% of the FY 2024 revenue target. This is
mainly driven by increased single family residential permit activity. Department‐
managed expenses are currently under or on pace to meet the budget. The table below
articulates Development Services revenues from January 2021 through December 2023.
Table 3: Development Services Revenue – 2021 through 2023
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Expenditures
Overall General Fund expenses are currently expected to remain within the FY 2024 Adjusted
budget levels of $284.3 million (not including transfers to infrastructure or other funds).
General Fund expenses (excluding operating transfers) for second quarter are 17.4% higher
than the prior year and are tracking at 39.0% of the Adjusted Budget (excluding encumbrances);
this trend is consistent with prior year expenditure levels.
Table 4
Salaries and Benefits
As a service driven organization, the largest expenses are salaries and benefits. Preliminary
salary and benefits expenditures through December 2023 are approximately $81.7 million, or
49% of the $166.9 million FY 2024 Adopted Budget, compared to $71.3 million in the same
period in the prior year. The City continues to maintain vacancies of approximately 74
positions; though this changes frequently, this reflects approximately a 13% vacancy rate.
Vacancy levels impact service capacity; however, departments use vacancy savings to mitigate
these impacts through other staffing strategies such as filling staffing gaps by contracting for
professional services, hiring ahead to allow overlap and smooth transitions, piloting new
technologies to increase efficiency in the absence of staff, and supporting a summer internship
program.
Expenditures FY 2024 FY 2023 Inc/(Dec) % change FY 2024 % FY 2023 %
Police 26,032$ 23,934$ 2,098$ 8.8% 52,241$ 49.8% 47,723$ 50.2%
Fire 23,925 20,420 3,505 17.2% 47,464 50.4% 41,479 49.2%
Community Services 17,976 13,379 4,597 34.4% 40,356 44.5% 34,690 38.6%
Public Works 9,761 9,264 497 5.4% 25,763 37.9% 22,764 40.7%
Planning and Development Services 10,938 8,916 2,022 22.7% 33,049 33.1% 26,426 33.7%
Library 5,289 4,272 1,017 23.8% 12,599 42.0% 10,524 40.6%
Administrative Services 4,971 4,705 266 5.7% 11,250 44.2% 10,107 46.6%
All Other Departments 12,022 9,609 2,413 25.1% 61,530 19.5% 54,672 17.6%
Total Expenditures 110,914$ 94,499$ 16,415$ 17.4% 284,252$ 39.0% 248,385$ 38.0%
General Fund Expenditures
FY 2024 2nd Quarter YTD
(000's)
2nd Quarter Actuals Adjusted Budget
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Public Safety Overtime
Table 5
As shown in Table 5 above, Police Department overtime is trending higher compared to FY 2023
due to a number of factors including backfilling shifts due to vacancies; benefited leave or
industrial injuries; and five recruits in training, either in house or at the police academy. As of
the end of the 2nd quarter, 12% of positions are vacant, another 7% of staff are unavailable to
work due to benefited leave or industrial injury, and 5% of filled positions have new staff in
training (in‐house or at the police academy). The Department is anticipating overtime to
continue trending over FY 2024 budget levels, with a leveling off if the hiring cycle continues to
stay ahead of departures. See Attachment D For more information on vacancy and overtime
staffing.
Fire Department overtime expenses are tracking higher compared to FY 2023 due to backfilling
entry level firefighters while completing the Joint Fire Academy and continued vacancies. In the
spring of 2023, the Department hired a total of 13 entry level firefighters which accounts for
16% of all on‐shift personnel positions. Although the positions are filled, those 13 recruits must
complete a 6‐month academy before being able to work on shift. In August 2023, the 13 entry
level firefighters graduated from the academy and are now working on shift.
The Department continues to struggle to fill vacancies; as of writing of this report, the
Department is still carrying 13 vacancies among the International Association of Fire Fighters
(IAFF) ranks. The overtime hours will remain high as backfill is required to maintain daily
operations with a high vacancy rate.
Police and Fire
Salaries and Overtime Expense
FY 2024 2nd Quarter YTD
(000's)
FY 2024 FY 2023 % change FY 2024 % FY 2023 %
Inc (Dec)
Police ‐ Salaries 9,110$ 8,659$ 5.2% 21,577$ 42% 19,186$ 45.1%
Police ‐ Overtime 1,687 1,509 11.8% 1,029 164% 973 155.1%
Total Police 10,797 10,168 6.2% 22,606 48% 20,159 50.4%
Fire ‐ Salaries 8,413 7,450 12.9% 18,417 46% 15,291 48.7%
Fire ‐ Overtime 2,050 1,799 13.9% 2,146 95% 3,801 47.3%
Total Fire 10,462 9,249 13.1% 20,564 51% 19,092 48.4%
Total Public Safety
Salaries & Overtime 21,259$ 19,418$ 9.5% 43,169$ 49% 39,251$ 49.5%
2nd Quarter YTD Actuals Adjusted Budget
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Attachment D
2022 2023 2024 Q2
POLICE DEPARTMENT
Overtime Expens
Adopted Budget (A)$944,186 $972,512 $1,028,988
Modified Budget (B)1,244,186 972,512 1,028,988
Net Overtime Cost - see below 781,344 1,107,518 1,149,083
Variance to Budge 462,842 (135,006) (120,096)
Overtime Net Cos
Actual Expense $2,319,043 $2,940,019 $1,686,904
Less Reimbursements
Other Program Reimbursements - 878
California OES/FEMA (Strike Teams) - -
Stanford Communications 107,684 124,868 50,526
Utilities Communications Reimbursement 56,004 64,599 28,472
Local Agencies (C)5,456 4,949 3,711
Police Service Fees 120,411 100,413 41,534
Total Reimbursements 289,556 295,707 124,243
Less Department Vacancies (A)1,248,143 1,536,794 413,578
Net Overtime Cos $781,344 $1,107,518 $1,149,083
Department Vacancies (number of days 3,903 4,876 1,259
Workers' Compensation Case 11 N/A* N/A*
Department Disabilities (number of days 1,221 739 177
FIRE DEPARTMENT
Overtime Expens
Adopted Budget (D)$1,931,121 $2,124,054 $2,146,234
Modified Budget (E)2,703,621 3,801,054 2,146,234
Net Overtime Cost - see below 4,073,011 1,740,750 1,334,108
Variance to Budge (1,369,390) 2,060,304 812,127
Overtime Net Cos
Actual Expense $4,684,796 $3,589,198 $2,049,596
Less Reimbursements
California OES/FEMA (Strike Teams) - 341,629 -
Total Reimbursements - 341,629 -
Less Department Vacancies (D)611,784 1,506,819 715,488
Net Overtime Cos $4,073,011 $1,740,750 $1,334,108
Department Vacancies (number of days 1,717 4,105 1,289
Workers' Compensation Case 35 N/A* N/A*
Department Disabilities (number of days 947 484 167
NOTES:
(A)The FY 2024 Police Department budget was increased by 1.0 Court Liaison Officer, 1.0 Administrative Associate, 2.0 Public Safety
Dispatchers, and 2.0 Police Officers.
(B)Police Department adopted budget has not been adjusted in FY 2024.
(C)Includes Animal Control Services contract with Los Altos and Los Altos Hills.
(D)The FY 2024 Fire Department budget was increased by 2.0 Fire Inspectors.
(E)The Fire Department adopted budget has not been adjusted in FY 2024.
*Data is not available at time of report release, will update for FY 2024 third quarter financial report.
Overtime Analysis for Fiscal Years 2022 through 2024
Public Safety Departments
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City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Human Resources
Meeting Date: February 12, 2024
Report #:2401-2521
TITLE
Adoption of a Resolution Certifying the Need for an Exception to the California Public
Employees Retirement System (CalPERS) 180-day Waiting Period to Hire Matthew Raschke as a
Retired Annuitant Extra Help Senior Engineer. CEQA status - Not a Project
RECOMMENDATION
Staff recommends that the City Council adopt a resolution certifying the need for an exception
to the 180-day waiting period, set forth by CalPERS, to hire Matthew Raschke as a Retired
Annuitant Extra Help Senior Engineer.
BACKGROUND
The Public Employees’ Pension Reform Act of 2013 (PEPRA) generally requires retired
annuitants to be separated from employment for at least 180 days before returning to work for
an employer in the same retirement system from which they receive a pension.1 An exception
to this requirement may be made when the employer’s governing body certifies the nature of
the employment and that the appointment is necessary to fill a critically needed position before
180 days have passed.2 The exception allows an employer to hire a retired annuitant to perform
work of limited duration, such as to eliminate a backlog, work on limited term special projects,
and perform work that is in excess of what regular staff can reasonably perform. PEPRA states
that this appointment must be approved by the employer’s governing body in a public meeting
as an action item. To secure a 180-day wait period exception, the employer must submit the
approved resolution to CalPERS before the first day of re-employment.
ANALYSIS
The Public Works Department has been managing the design and construction of the Public
Safety Building as part of the 2014 Council Infrastructure Plan.3 The Public Safety Building’s
1 Government Code section 7522.56 (f).
2 Government Code section 7522.56 (f)(1).
3 https://www.cityofpaloalto.org/Departments/Public-Works/Engineering-Services/Engineering-Projects/Public-
Safety-Building-Project
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construction is approximately 90% complete, but there are still many important tasks left to do,
including commissioning, move-in, and fit-up of all the technical equipment and furniture. The
senior engineer serving as project manager manages most of this work, which is conducted by
and through contractors. The project manager also performs special coordination with the
prime contractor.
FISCAL/RESOURCE IMPACT
STAKEHOLDER ENGAGEMENT
ENVIRONMENTAL REVIEW
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ATTACHMENTS
Attachment A: Resolution No. 10147: A Resolution of the City Council for the City of Palo Alto
Approving an Exception to the California Public Employees Retirement System 180-day Waiting
Period to Hire Retired Annuitant Matthew Raschke
Attachment B: Employment Agreement – Raschke 2024
APPROVED BY: Sandra Blanch, Human Resources Director
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*NOT YET APPROVED*
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Resolution No. 10147
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*NOT YET APPROVED*
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K. The maximum base salary for this position is $107.20 per hour, and the
minimum base salary for this position is $71.47 per hour; and
L. The hourly rate paid to Mattew Raschke will be $107.20; and
M. Matthew Raschke has not and will not receive any other benefit, incentive,
compensation in lieu of benefit or other form of compensation in addition to this hourly pay
rate; and
The Council of the City of Palo Alto RESOLVES as follows:
Section 1. The City Council hereby certifies the nature of the appointment of
Matthew Raschke as described herein and detailed in the attached employment agreement
document and that this appointment is necessary to fill the critically needed position of Senior
Engineer for the City of Palo Alto by March 25, 2024 because of the critical need to complete
the Public Safety Building project, a long-term, complex project that requires special expertise
and experience to complete.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
___________________________ ______________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
___________________________ ______________________________
City Attorney City Manager
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EMPLOYMENT AGREEMENT
BETWEEN CITY OF PALO ALTO
AND
Matthew Raschke
THIS AGREEMENT is between the City of Palo Alto, a municipal corporation and chartered city
("City") and Matthew Raschke (“Raschke”). It is effective on the latest date next to the signatures on
the last page.
This Agreement is entered into on the basis of the following facts:
A. City, acting by and through its City Council, wishes to employ Raschke as a
Retired Annuitant, subject to the terms and conditions set forth in this Agreement, Resolution
Number 10147 the Palo Alto Municipal Code and the Charter of the City of Palo Alto (the
"Charter").
B. Under the Public Employees’ Retirement Law and the California Public Employees’
Pension Reform Act of 2013, the City Council may appoint a CalPERS retiree to a Retired Annuitant
position without reinstatement from retirement within 180 days of retirement if such
appointment is necessary because the retired person has specialized skills needed in performing
work of limited duration. The City requires the additional services of a retired annuitant to
complete a special project and to perform work in excess of what regular staff are reasonably able
to do.
C. Notwithstanding any provision of the City of Palo Alto Merit System Rules and
Regulations, the Retired Annuitant serves on an at-will basis, with no expectation of continued
employment, and with no right to pre-or post- separation due process or appeal.
D. Raschke desires to be employed by the City as a Retired Annuitant Extra Help
Senior Engineer, subject to the terms and conditions in this Agreement, the Palo Alto Municipal
Code, the Charter, the Palo Alto Merit System Rules and Regulations, and all other applicable
laws, resolutions, and policies.
E. The City and Raschke wish to establish specific terms and conditions relating
to compensation and benefits and related matters.
BASED UPON THE FOREGOING, THE CITY AND RASCHKE AGREE AS FOLLOWS:
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1.Employment. The City appoints Raschke as a Retired Annuitant for a term not to
exceed 24 months to begin on March 25, 2024, or upon CalPERS approval, whichever is later. Except
as otherwise provided herein, Raschke’s employment with the City shall be governed by the City
Council adopted Compensation Plan for Limited Hourly Employees, as it currently exists and may be
changed from time to time.
2.Duties of the Retired Annuitant. Raschke will perform the duties established for the
Retired Annuitant Extra Help Senior Engineer by direction given by the Public Works Director, and as
otherwise provided by law, resolution, or regulation. Raschke agrees to comply with all federal, state
and local laws, ordinances, rules and regulations applicable to or associated with these duties.
2.1.No Conflict. Raschke will not engage in any employment, activity, consulting
service, or other enterprise, for compensation or otherwise, which is actually or potentially in
conflict with or which interferes with the performance of their duties. Raschke acknowledges
that they are subject to the various conflict of interest requirements found in the California
Government Code and state and local policies and regulations.
2.2.Permission Required for Outside Activities. Raschke will not engage in
any employment, activity, consulting service, or other enterprise, for compensation or
not, without written permission of the City Council.
3.Salary. While performing the duties of Retired Annuitant, Raschke will receive a base
salary within the range for Senior Engineers provided in the City Council-approved Compensation
Plan for Management and Professional Personnel and Council Appointees, as it currently exists and
may be changed from time to time. Raschke will receive an hourly base rate of one hundred seven
dollars and twenty cents ($107.20) per hour, beginning on March 25, 2024, or upon CalPERS
approval, whichever is later. This amount is subject to authorized or required deductions and
withholding, prorated, and paid on the City's regular paydays. Raschke is a non-exempt employee
under applicable wage and hour law.
4.Benefits and Allowances. Pursuant to California Government Code Section 21224,
Raschke shall not receive any benefit, incentive, compensation in lieu of benefits, or other form of
compensation in addition to the hourly pay rate.
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5.Duration of Employment. Raschke understands and agrees that he has no
constitutionally protected property or other interest in his employment as a Retired Annuitant.
Raschke waives any and all rights, if any, under the Merit System Rules and Regulations, including
without limitation, the right to pre-or post-disciplinary due process. Raschke understands and agrees
that he works at the will and pleasure of the City and that he may be terminated or asked to resign at
any time, with or without cause. Raschke may terminate this agreement (terminating all employment)
upon 30 days written notice.
6. Miscellaneous.
6.1.Notices. Notices given under this Agreement shall be in writing and shall be
either: a) served personally; or b) sent by facsimile (provided a hard copy is mailed within one
(1) business day); or c) delivered by first-class United States mail, certified, with postage
prepaid and a return receipt requested; or d) sent by Federal Express, or some equivalent
private mail delivery service. Notices shall be deemed received at the earlier of actual receipt
or three (3) days following deposit in the United States mail, postage prepaid. Notices shall be
directed to the addresses shown below, provided that a party may change such party's
address for notice by giving written notice to the other party in accordance with this
subsection.
CITY: Attn: Human Resources
250 Hamilton Avenue, Palo Alto CA 94301
Phone (650) 329-2376
RASCHKE: Matthew Raschke
250 Hamilton Avenue, Palo Alto CA 94301
Phone (650) 329-2100
6.2.Entire Agreement/ Amendment. This Agreement constitutes the entire
understanding and agreement between the parties as to those matters contained in it, and
supersedes any and all prior or contemporaneous agreements, representations and
understandings of the parties. This Agreement may be amended at any time by mutual
agreement of the parties, but any such amendment must be in writing, dated, and signed by
the parties and attached herto.
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6.3.Applicable Law and Venue. This Agreement shall be interpreted according to
the laws of the State of California. Venue of any action regarding this Agreement shall be in
the proper court in Santa Clara County.
6.4.Severability. In the event any portion of this Agreement is declared void, such
portion shall be severed from this Agreement and the remaining provisions shall remain in effect,
unless the result of such severance would be to substantially alter this Agreement or the
obligations of the parties, in which case this Agreement shall be immediately terminated.
6.5.Waiver. Any failure of a party to insist upon strict compliance with any term,
undertaking, or condition of this Agreement shall not be deemed to be a waiver of such term,
undertaking, or condition. To be effective, a waiver must be in writing, signed and dated by the
parties.
6.6.Representation by Counsel. Raschke and the City acknowledge that they each
did, or had the opportunity to, consult with legal counsel of their respective choices with respect
to the matters that are the subject of this Agreement prior to executing it.
6.7.Section Headings. The headings on each of the sections and subsections of this
Agreement are for the convenience of the parties only and do not limit or expand the contents of
any such section or subsection.
Raschke, Matthew Mayor
Approved as to Form:
City Attorney’s Office
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City Council
Staff Report
From: City Manager
Report Type: INFORMATION REPORTS
Lead Department: Utilities
Meeting Date: February 12, 2024
Staff Report:2312-2320
TITLE
Informational Update: Recently Promulgated and Pending Federal Regulations Governing Lead in Drinking
Water
RECOMMENDATION
Receive informational update from the Utilities Department.
EXECUTIVE SUMMARY
This informational update to City Council is to provide information regarding recently
promulgated and pending federal regulations governing lead in drinking water and the City’s
implementation and ongoing compliance efforts. These regulations require the City to verify
prior to October 16, 2024 that no public or private lead service lines exist in the City‘s water
system. As of January 8, 2024, Palo Alto is approximately 53% complete with its inventory of the
service lines and currently anticipates completing the service line inventory prior to the October
16, 2024 deadline. To date, no lead service lines have been identified.
Proposed federal regulations will require CPAU to sample an annual total of 20% of the public
and private elementary schools (K-5th grades) per year, conduct sampling at secondary schools
(6th-12th grades) on request for one testing cycle (i.e., 5 years), and conduct sampling on request
of all schools’ facilities thereafter. The school sampling will start in 2027 if the draft regulations
are promulgated as currently written.
BACKGROUND
Lead is a metallic element that has historically been used in items such as plumbing (e.g., piping,
solder, fixtures) paints, cable coverings, bullets, radiation shielding material, and as a gasoline
additive. Lead is a widespread contaminant in the human environment and occurs in drinking
water principally as a consequence of leaching from plumbing containing lead.
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Health Effects of Lead Exposure
According to the United States Environmental Protection Agency1 (USEPA), lead is harmful to
human health and there is no safe blood lead level for children. In the human body, lead can
substitute for calcium, which is a mineral that strengthens the bones. Lead is carried in the
bloodstream and can harm the nervous system and brain. What is not excreted is absorbed into
the bones, where it can accumulate. Young children are especially susceptible to lead exposure,
because of their frequent hand-to-mouth activity, and their metabolism - their bodies absorb
metals at a higher rate than the average adult.
The California Safe Drinking Water Act of 1996 (Health and Safety Code Section 116365) requires
the Office of Environmental Health Hazard Assessment (OEHHA) to perform risk assessments and
adopt public health goals (PHGs) for contaminants in drinking water based exclusively on public
health considerations. A PHG of 0.2 micrograms per liter (µg/L) for lead in drinking water has
been established on the basis of studies relating neurobehavioral deficits to elevated lead
concentrations in the blood. However, PHGs are not enforceable drinking water standards, which
also typically account for technical feasibility and cost of implementation in their establishment.
Lead is rarely present in the source water for drinking water supplies (i.e., untreated water from
streams, rivers, lakes, or underground aquifers that is used to supply private wells and public
drinking water). Lead has not been detected historically in water provided by the San Francisco
Public Utilities Commission (SFPUC) or in samples collected by the City of Palo Alto Utilities
Department (CPAU) at concentrations greater than allowable pursuant to federal and state
regulations.
Most lead in drinking water results from corrosion of older plumbing materials containing lead.
Corrosion can release lead from pipes, solder, fixtures, and other plumbing materials that the
water contacts as it moves through plumbing to the tap. The use of lead pipes was banned in the
1980s, yet the USEPA estimates there are over 9 million lead service lines delivering water in
neighborhoods across America.
The extent to which corrosion of plumbing materials occurs can affect the amount of lead that is
present in the drinking water. Interior lead solder (commonly used until 1988) and lead pipe,
leaded brass fittings, valves, and various drinking water outlets (e.g., water fountains and faucets)
that contain lead materials are the primary contributors. The occurrence and rate of corrosion
depend on the nature of the source water, the corrosion control practices at the water system,
and the age of the plumbing materials in the building. Older brass plumbing components can
also contain a large percentage of lead, but the amount of lead in new brass drinking water
fixtures is regulated at both the state and federal level to help protect drinking water quality.
1 United States Environmental Protection Agency https://www.epa.gov/ground-water-and-drinking-water/basic-
information-about-lead-drinking-water#health
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Regulatory Background
The USEPA recently proposed the Lead and Copper Rule Improvements (LCRI) to reduce exposure
to lead through drinking water nationwide. The proposal regulation builds on the 2021 Lead and
Copper Rule Revisions (LCRR) to the 1991 Lead and Copper Rule (LCR), which are summarized
further below.
Federal Lead and Copper Rule
In 1991, the USEPA published final regulatory revisions to the National Primary Drinking Water
Regulation (NPDWR) for lead and copper under the authority of the Safe Drinking Water Act
(SDWA). This regulation is known as the Lead and Copper Rule (Title 40 Code of Federal
Regulations Part 141). Since 1991 the LCR has undergone various revisions. In 2007, EPA revised
the LCR to enhance implementation in the areas of monitoring, treatment, customer awareness,
lead service line replacement, and enhanced public education requirements.
Federal Lead and Copper Rule Revisions
During January 2021, the USEPA published the Lead and Copper Rule Revisions (LCRR) to the
National Primary Drinking Water Regulations and Implementation; (40 CFR Parts 141 and 142).
The LCRR improved the reliability of lead tap sampling results, strengthened corrosion control
treatment requirements, expanded consumer awareness, and improved risk communication.
Pursuant to the LCRR, all water systems must develop and submit by October 16, 20242 an initial
service line inventory of the entire system, including both the publicly and privately owned
portions of the water service line up to the building penetration. The current service line
inventory results are required to be made available to the public and are posted on the City’s
website. If the City identifies any private lead service lines, it must inform the resident within 30-
days of completing the inventory and annually thereafter. Palo Alto previously inventoried all
City-owned water piping (i.e., the water mains and service lines up to the water meter). Palo Alto
does not have any known lead service lines in its system, but inventory of the private service lines
has not been performed previously.
While the State of California has previously required lead sampling at public schools, the LCRR
requires for the first time in federal regulations that community water systems (e.g., City of Palo
Alto) conduct lead-in-drinking-water testing and public education in public and private schools
and childcare facilities, unless the facility was either built or had replaced all plumbing after
January 1, 2014. The LCRR requires community water systems to sample 20% of elementary
schools and 20% of childcare facilities per year and conduct sampling at secondary schools on
request for one testing cycle (i.e., 5 years) and conduct sampling on request of all schools and
childcare facilities thereafter. In California, the testing of childcare facilities will be implemented
separately by the Department of Social Services and sampling childcare facilities will not be the
responsibility of the community water system. Therefore, even though the LCRR requires
2 The original deadline established in the LCRR was January 16, 2024 (86 FR 4198) but was extended to October 16,
2024 in 86 FR 31939. The delay in the effective date is consistent with presidential directives issued on January 20,
2021, to the heads of federal agencies to review certain regulations, including the LCRR.
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community water systems to perform the sampling, the state will address childcare facilities
separately and will only require the City to sample public and private schools where it serves
water prior to October 16, 2029.3
Proposed Federal Lead and Copper Rule Improvements
On December 6, 2023, the USEPA announced the proposed LCRI (88 FR 84878) with the following
principal modifications to the current regulations.
Achieving 100% Lead Pipe Replacement within 10 years. The proposed LCRI would require
the majority of water systems to replace lead services lines within 10 years.
Locating Legacy Lead Pipes. Under the proposed LCRI, all water systems would be
required to regularly update their inventories, create a service line replacement plan, and
identify the materials of all service lines of unknown material.
Improving Tap Sampling. The proposed LCRI would make changes to drinking water
sampling requirements, informed by best practices, and would require collection of the
first liter and fifth liter samples at sites with lead service lines and use the higher of the
two values when determining compliance with the rule.
Lowering the Lead Action Level. USEPA is proposing to lower the lead action level from
15 µg/L to 10 µg/L. When a water system’s lead sampling exceeds the action level, the
system would be required to inform the public and take action to reduce lead exposure
while concurrently working to replace all lead pipes.
Strengthening Protections to Reduce Exposure. Water systems with multiple lead action
level exceedances would be required to conduct additional outreach to customers and
make filters available to all consumers. The filters must be certified to reduce lead.
Notably however, the proposed LCRI delayed the compliance timeframe for school sampling that
was originally established in the LCRR. Under the proposed LCRI, the 5-year school sampling
schedule starts three years after the date of publication of the final LCRI, which is anticipated in
late summer of 2024.
State of California Regulations
Senate Bill No. 1398 (2015-2016), Public Water Systems: lead user service lines, added California
Health and Safety Code (HSC) section 116885 and was subsequently amended by Senate Bill No.
427 (2017-2018). HSC Section 116885 requires all community water systems to compile an
inventory of known partial or total lead user service lines by July 1, 2018. California Code of
Regulations, Title 22, Section 64551.60 defines “User service line," as “the pipe, tubing, and
fittings connecting a water main to an individual water meter or service connection,” but does
not include the service line from the meter to individual homes. Therefore, the inventory
collected under California law only contained information on the City-owned pipe and water
service lines between the main and the meter. The LCRR requires the inventory from the water
3 The proposed LCRI proposes to extend the LCRR deadline by three years. The final compliance date will be
dependent on the date the final LCRI is promulgated.
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main to the building penetration, including any privately owned service lines. While the City can
rely on previously information collected to comply with the requirements of the LCRR, the
previously collected information is insufficient for full compliance and the City still needs to
inspect all user service lines between the meter and the house penetration.
Previous School Sampling Initiatives
Historical LCR Sampling and Analytical Results
ANALYSIS
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Based on information from the California Department of Education and City records, there are
46 schools to be included in the LCRR sampling program as shown by school type in the table
below.
School Type Private Public Totals
th grades) per year and conduct sampling at secondary
schools (6th-12th grades) on request for one testing cycle (i.e., 5 years) and conduct sampling on
request of all schools’ facilities thereafter. The sampling is anticipated to start in 2027, i.e., three
years after the anticipated promulgation of the final LCRI.
FISCAL/RESOURCE IMPACT
STAKEHOLDER ENGAGEMENT
ENVIRONMENTAL REVIEW
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ATTACHMENTS
None.
APPROVED BY:
Dean Batchelor, Director of Utilities
Staff: Matt Zucca, Assistant Director of Water Gas Wastewater
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City Council
Staff Report
From: City Manager
Report Type: INFORMATION REPORT
Lead Department: Administrative Services
Meeting Date: February 12, 2024
Report #:2311-2232
TITLE
Investment Activity Report for the Second Quarter, Fiscal Year 2024
RECOMMENDATION
This is an informational report and no City Council action is required.
EXECUTIVE SUMMARY
The City’s Investment Policyi (Policy) requires that staff report to Council quarterly on the City’s
portfolio composition and performance compared to the Council-adopted Policy; discuss overall
compliance with the City’s Investment Policy; and provide recommendations, if any, for Policy
changes. In addition, staff provides a detailed list of all securities and reports on the City’s ability
to meet expenditure requirements over the next six months. This report is to inform Council of
the City’s investment portfolio performance as of the second quarter ending December 31, 2023
and to disclose staff’s cash flow projections for the next six months. Staff expect that the City will
have sufficient funds or liquidity to meet expenditure requirements for the next six months. The
portfolio details, activities, and performance are discussed below, and additional information is
provided in the attachments. During the second quarter there was no variance from the
Investment Policy.
ANALYSIS
The City’s investment portfolio is summarized in Graph 1 and detailed in the Investments by Fund
Report (Attachment B). The Investments by Fund Report groups the portfolio’s securities by
investment type and includes details of the investment issuer, date of maturity, current market
value, the book and face (par) value, and the weighted average maturity of each type of
investment and of the entire portfolio.
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Due to rounding, the above graph's percentage total is greater than 100 percent.
The par value of the City’s portfolio is $616.7 million; in comparison, last quarter it was $575.6
million. The $41.1 million portfolio growth since the last quarter results from timing of cash flows
from the prepayment of the City’s Fiscal Year 2024 Unfunded Accrued Liability (UAL) pension cost
for active employees to the Public Employers’ Retirement System (PERS) totaling $41.6 million,
additional major revenue receipt due to seasonality timing, and one less pay period costs in the
second quarter compared to the first quarter. By prepaying PERS instead of making payments
with each payroll period, the City expects savings of $1.4 million in PERS payments; however, this
savings will be partially offset by the loss of approximately $759 thousand in interest income in
the City’s portfolio. The net citywide savings of prepaying the UAL cost is $641 thousand. The
saving is a consequence of PERS’ potential ability to earn interest earlier and at a higher rate than
the City’s portfolio could realize. Without this prepayment, an additional $9.9 million in UAL
payment would have been made in the second quarter; this payment was made in first quarter’s
prepayment. As far as additional major revenue receipt due to seasonality timing, property taxes
and related receipts don’t begin until the second quarter and major revenues such as sales,
transient occupancy and utility user’s taxes are historically lower in the first quarter. For example,
second quarter property related (taxes and assessments) receipts were $18.4 million.
The portfolio consists of $71.9 million in liquid accounts and $544.8 million in various investment
types as detailed in the following Table 1. The Investment Policy requires that at least $50 million
be maintained in securities maturing in less than two years. The portfolio includes $173.1 million
in investments maturing in less than two years, comprising 28.1% of the City’s investment
portfolio. In addition, the Investment Policy allows up to 30% of the portfolio to be invested in
securities with maturities beyond five years; actual at the end of the second quarter is 24.9% of
the portfolio.
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The current market value of the portfolio is 93.6% of the book value. The market value of
securities fluctuates, depending on how interest rates perform. When interest rates decrease,
the market value of the securities in the City’s portfolio will likely increase; likewise, when interest
rates increase, the market value of the securities will likely decrease. Understanding and showing
market values is not only a reporting requirement, but essential to knowing the principal risks in
actively buying and selling securities. It is important to note, however, that the City’s practice is
to buy and hold investments to maturity, therefore changes in market price do not affect the
City’s investment principal. The market valuation is provided by U.S. Bank, which is the City’s
safekeeping agent. The average life to maturity of the investment portfolio is 3.13 years
compared to 3.52 years last quarter.
The Investment Policy states “Should the ratio of the market value of the portfolio to the book
value of the portfolio fall below 95%, the Administrative Services Department will report this to
the City Council within a reasonable time frame and evaluate whether there is any risk of holding
any of the securities to maturity.” In the prior six quarters the market value fell below 95%;
ranging from 89% to 94% during these periods. The market rate this second quarter is 93.6% of
book value. Interest rates on new investments have fluctuated so the expectation is the market
value of the portfolio is expected to stay in the current range in the coming quarters. To minimize
risk of loss for investment principal due to lower market values, the City’s investment practice is
to buy and hold investments to maturity; in the instances where there is a need to sell securities
for contingency cash flow planning, the City’s practice is to sell securities that are above the
market value.
Investments Made During the Second Quarter
During the second quarter, $14.3 million of securities with an average yield of 3.8% matured.
During the same period, per the following Table 2, securities totaling $7.4 million with an average
yield of 5.3% were purchased. As expected, as interest rates rose on new investments, the City’s
portfolio’s average yield has begun to gradually rise. In the prior two fiscal years or during the
height of the COVID-19 economic closures, the portfolio’s interest rate had steadily declined. The
T
Y
Y
Y
Y
5
T
%
P
U 2$1$3$-$-$7$1
U A 1 5 1 1 9 1 3
U M 1 2 5 5 5 2 3
N C (1 1 5 1 1 4 7
U C 4 1 4 8 -2 4
S -8 2 1 -4 7
L 7 ----7 1
G 1$1$1$1$1$6$1
%2 1 1 1 2 1
*
(
I
F
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City’s short-term money market and pool account increased by $48.1 million compared to the
first quarter of Fiscal Year 2024. Staff continually monitors the City’s short-term cash flow needs
and adjusts liquid funds to meet them.
T
Y
Y
Y
Y
5
T
%
P
U -$-$-$-$-$-$0
U A ------0
U M ----4 4 6
N C (0 --0 -1 1
U C ------0
S ---1 -1 1
G 0$-$-$1$4$6$1
%3 0 0 2 6 1
*
(
I
F
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4.42%, respectively. In comparison, in the prior quarter LAIF had 3.42% yield and the two-year
and five-year Treasury bonds yields were higher at 4.92% and lower at 4.31%.
City’s portfolio duration is 3.13 years.
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further and interest rates, which have begun to decline, will be lower.
Graph 3: U.S. Inflation Rate
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Graph 4: U.S. Unemployment Rate
The unemployment rate in the United States held at 3.7% in December 2023, unchanged from
the previous month. There was a slowdown in new entries into the labor force.
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Graph 5: U.S. Gross Domestic Product (GDP) Annual Growth Rate
The Gross Domestic Product (GDP) in the United States expanded an annualized 3.3% in the
fourth (calendar) quarter of 2023, down from 4.9 percent in the previous quarter.
Funds Held by the City or Managed Under Contract
is a consolidated report of all City investment funds, including those not held
directly in the investment portfolio. These include cash in the City’s regular bank account with
US Bank and Wells Fargo. A description of the City’s banking relationships can be found in City
Council Staff Report ID # 7858ii and ID # 11402iii. The bond proceeds, reserves, and debt service
payments being held by the City’s fiscal agents are subject to the requirements of the underlying
debt indenture. The trustees for the bond funds are U.S. Bank and California Asset Management
Program (CAMP). Bond funds with U.S. Bank are invested in federal agency and money market
mutual funds that consist exclusively of U.S. Treasury securities. Bond funds in CAMP are invested
in banker’s acceptance notes, certificates of deposit, commercial paper, federal agency
securities, and repurchase agreements. The most recent data on funds held by the fiscal agent is
as of December 31, 2023.
In January 2017, the City established a Section 115 Irrevocable Trust (Public Agencies Post-
Employment Benefits Trust) administered by Public Agency Retirement Services (PARS). This
fund is governed by the City’s Retiree Benefit Policy as opposed to the Investment Policy;
however, it is discussed in this report to present the full picture of the City’s investments. It is the
City’s intent to prefund pension costs and began to address the Net Pension Liabilities (NPL) as
calculated by Governmental Accounting Standards Board Pronouncement No. 68 (GASB 68). The
Section 115 Trust offered by PARS has five portfolios from which to choose in making investments
of City funds. In February 2023, the City Council revised the City’s portfolio selection from
“Moderately Conservative” to “Moderate”, shifting from the second most conservative to third.
Additional information on the establishment of this trust can be found in City Council Staff Report
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ID # 7553iv. Through December 31, 2023, principal investment contributions of $57.7 million
made over time since May 2017, has increased to $65.3 million or by $7.6 million and the net
return for one and five years has been 13.5% and 5.4% respectively. Since inception, $8.2 million
net earnings have been realized with $0.61 million in administrative expenses.
FISCAL/RESOURCE IMPACT
STAKEHOLDER ENGAGEMENT
ENVIRONMENTAL REVIEW
ATTACHMENTS
APPROVED BY:
i City of Palo Alto website, Administrative Services Department, Money Management & Treasury: Microsoft Word -
Proposed City of Palo Alto Investment Policy - Fiscal Year 2023-24.doc
ii City Council, April 11, 2017, under “Additional Information”, CMR 7858:
iii City Council, September 21, 2020 Item #2, CMR 11402:
iv City Council, January 23, 2017 Item #5, CMR 7553:
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Book Value Market Value
City Investment Portfolio (see Attachment B)615,665,374$ 576,479,077$
Other Funds Held by the City
Cash with Wells Fargo Bank 219,407 219,407
(includes general and imprest accounts)
Cash with US Bank 2,664,502 2,664,502
Total - Other Funds Held By City 2,883,909 2,883,909
Funds Under Management of Third Party Trustees *
Debt Service Proceeds
US Bank Trust Services **
1999 Utility Revenue Bonds
Debt Service Fun 25 25
2009 Water Revenue Bonds (Build America Bonds)
Debt Service and Reserve Funds 2,365,717 2,365,717
2010 & 2013 General Obligation (Library) Bon
Debt Service and Escrow Funds 1 1
2011 Utility Revenue Refunding Bonds
Debt Service and Reserve Funds 642,328 642,328
2018 Capital Improvement (Golf Course & 2002B COP Refinance)
(Taxable- Green Bond) Certificates of Participation
Debt Service and Cost of Issuance Funds 776 776
2019 California Avenue Parking Garage Certificates of Participation
(Tax-Exempt and Taxable Bonds)
Construction and Cost of Issuance Funds 3,270 3,270
2021 Public Safety Building Certificates of Participation
Construction Debt Svc, Capitalized Interest, and Cost of Issua 3,544,742 3,544,742
2022A & B General Obligation (Library) Bon
Cost of Issuance Funds 4,344 4,344
California Asset Management Program (CAMP) ***
2012 University Ave. Parking Refunding Bonds
Reserve Fun 2,900,351 2,900,351
Public Agencies Post-Employment Benefits Trust ****
Public Agency Retirement Services (PARS) 65,253,044 65,253,044
Total Under Trustee Management 74,714,598 74,714,598
GRAND TOTAL 693,263,881$ 654,077,584$
* These funds are subject to the requirements of the underlying debt indenture.
** U.S. Bank investments are in money market mutual funds that exclusively invest in U.S. Treasury securities.
*** CAMP investments are in money market mutual fund which invest in bankers acceptance, certificate of deposit,
commercial paper, federal agency securities, and repurchase agreements.
**** PARS investments are in moderately conservative index plus funds
Attachment A
Second Quarter, Fiscal Year 2022-23
(Unaudited)
Consolidated Report of Cash Management
City of Palo Alto Cash and Investments
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Attachment B
City of Palo Alto
Administration Svcs. Dept.
250 Hamilton Ave., 4th Floor
Palo Alto, CA 94301
City of Palo Alto
Fund ALL - Portfolio Listings
Investments by Fund
December 31, 2023
(650)329-2362
Purchase Current Maturity Days ToYTMYTMMarket ValueCUSIPInvestment #Issuer Date Book Value Par Value
LAIF & Fidelity Cash Accounts
SYS158 158 Fidelity Investments 07/01/2020 28,139,807.13 28,139,807.13 28,139,807.13 5.240 5.168 5.240 1
Local Agency Investment Fund
Subtotal and Average 71,906,009.28 71,906,009.28 71,623,416.65 4.400 4.461 1
Negotiable Certificates of Deposits
00453NAA9 2831 NCD Achieve Federal Credit Union 02/17/2023 249,000.00 249,000.00 248,270.43 4.650 4.589 4.653 02/17/2026 778
1,542
1,459
1,565
444
Amalgamated Fin Corp Bank
392
386
150
1,061
574
1,057
Beal Bank - Plano, TX
242
BankUnited NA 752
Blue Foundry Bank 78
BMO Harris Bank 1,761
BMW Bank of North America
1,605
BOKF NA Bank
Bankwell Bank
Bank of Baroda 319
Bridgewater Bank Bloom MN 1,607
Portfolio CPA
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Fund ALL - Portfolio Listings
Page 2
Purchase Current Maturity Days ToYTMYTMPar Value Market ValueCUSIPInvestment #Issuer Date Book Value
Negotiable Certificates of Deposits
07371CH69 2669 NCD Beal Bank USA - Las Vegas, NV 03/02/2022 248,764.00 249,000.00 228,644.25 2.050 2.053 2.081 02/24/2027 1,150
First Carolina Bank
Celtic Bank 242
Central State Bank IOWA 451
329
17
1,598
Cinfed Fed Credtit Union Bank
483
273
394
Connexus Credit Union 1,087
1,051
53
94
1,365
Covantage Credit Union
444
834
Carter Federal Credit Union 480
1,185
City National Bank
Dannemora Fed Credit Union 1,823
The District Fed Cr Union
Portfolio CPA
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Fund ALL - Portfolio Listings
Page 3
Purchase Current Maturity Days ToYTMYTMPar Value Market ValueCUSIPInvestment #Issuer Date Book Value
Negotiable Certificates of Deposits
27004PBV4 2545 NCD Eaglemark Savings Bank 07/07/2021 248,499.27 249,000.00 225,638.82 0.850 0.919 0.932 07/07/2026 918
1,815
1,600
1,869
273
Farmers & Merchant State Bank
First Bank of the Lake 1,576
First-Citizens Bank 504
1st Financial Bank 0.444 0.450 08/19/2025 596
First Farmers Bank & Trust 247
757
350
30
1,064
Farmers &Merchants Bank
364
267
1,152
Gesa Credit Union 1,429
Grant County Bank West V.
84
148
658
714
Harborstone Credit Union 86
490
1,127
Portfolio CPA
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Fund ALL - Portfolio Listings
Page 4
Purchase Current Maturity Days ToYTMYTMPar Value Market ValueCUSIPInvestment #Issuer Date Book Value
Negotiable Certificates of Deposits
45776NFE1 2757 NCD INS Bank 12/14/2022 249,000.00 249,000.00 248,987.55 4.900 4.835 4.902 12/14/2027 1,443
Insight Credit Union
Inst. for Sav in Newburyport
Keypoint Credit Union Bank
757
1,386
221
546
799
2
Meritrust Federal Credit Union
242
869
1,855
312
116
494
763
448
122
1,598
714
266
Minwest Bank MV
Maine Savings Credit Union
Mountain America FD Credit Uni
New Brunswick Postal FCU
Portfolio CPA
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Fund ALL - Portfolio Listings
Page 5
Purchase Current Maturity Days ToYTMYTMPar Value Market ValueCUSIPInvestment #Issuer Date Book Value
Negotiable Certificates of Deposits
654062LK2 2906 NCD Nicolet National Bank 05/30/2023 249,000.00 249,000.00 249,064.74 5.150 5.082 5.153 12/02/2024 336
1,548
533
322
350
80
638
51
652
People's Bank 2,191
Ponce De Leon Federal Bank
228
451
Pitney Bowes Bank, Inc.1,564
Premier Community Bank
1,593
Rayond James Bank NA
679
Sallie Mae Bank 261
Sawyer Savings Bank 1,396
Southern Bank 1,579
Charles Schwab Bank 4.586 4.650 01/18/2024
1,551
Portfolio CPA
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Fund ALL - Portfolio Listings
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Purchase Current Maturity Days ToYTMYTMPar Value Market ValueCUSIPInvestment #Issuer Date Book Value
Negotiable Certificates of Deposits
819866BR4 2718 NCD Sharonview Fed Credit Union 10/31/2022 248,848.01 249,000.00 249,002.49 5.000 4.966 5.035 10/31/2025 669
1,491
210
1,508
25
Sunwest Bank
Space Age Federal Credit Union
1,519
First Source Bank
Southeast Bank
Southwest Financial Fed. Credi
130
Technology Credit Union
16
United Heritage Credit Union 483
932
455
2,752
235
227
682
441
697
1,443
1,548
Wahoo State Bank
Western State Bank
Wells Fargo Bank
Wyoming Bank & Trust
Subtotal and Average 44,167,761.81 44,196,000.00 42,694,303.61 3.269 3.314 776
Portfolio CPA
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Fund ALL - Portfolio Listings
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Purchase Current Maturity Days ToYTMYTMPar Value Market ValueCUSIPInvestment #Issuer Date Book Value
Corporate Medium Term Bonds
037833CU2 2053 MTN Apple, Inc.08/06/2019 1,504,093.29 1,500,000.00 1,485,975.00 2.850 1.998 2.025 05/11/2024 131
Apple, Inc.
Apple, Inc.769
Apple, Inc.775,227.91 750,000.00 1,135
Alphabet (Google) Inc.199,272.52 200,000.00
994,280.23 1,000,000.00 957
911,173.08 1,322
2,503,959.80
790
790
36
672
672
1,003,914.30 1,000,000.00 31
1,247
1,377,779.79 1,530,000.00
2,006,168.72 2,000,000.00
Yale University 470
Subtotal and Average 29,043,812.70 29,330,000.00 27,775,244.70 1.585 1.607 715
Federal Agency Bonds
31315PL23 1428 Federal Agricultural Mortgage 01/09/2015 404,643.99 404,000.00 402,072.92 3.330 2.540 2.575 03/27/2024 86
581
121
121
764
235
213
213
1580
1,505,432.39 1,500,000.00 1,490,580.00
1,000,230.27 986,210.00
1,479,315.00
Portfolio CPA
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Fund ALL - Portfolio Listings
Page 8
Purchase Current Maturity Days ToYTMYTMPar Value Market ValueCUSIPInvestment #Issuer Date Book Value
Federal Agency Bonds
31315P4B2 1999 Federal Agricultural Mortgage 12/14/2018 549,162.36 549,000.00
1,000,000.00
678,000.00
548,176.50 3.460 3.018 3.060 01/30/2024 29
2034
2035 693,598.62 679,972.98 324
2098 572,134.50 550,000.00 547,976.00 581
2301 1,673,163.29 1,569,000.00 1,499,995.38 1,418
2340 Call
2458 Call
2471 1,499,388.33 1,391,370.00
2473 Call 2,571
1,240,230.00
2519 1,499,663.79 1,391,940.00
2524 816
2527 Call 2,653
2530
2533
2540 816
2593 1,000,000.00 1,000,000.00 920,610.00 1,008
2621 919,830.00
2625 1,000,000.00 923,730.00
Portfolio CPA
Run Date: 01/21/2024 - 18:49 FI (PRF_FI) 7.3.11
Item 14
Attachment B - Investment Portfolio
Item 14: Staff Report Pg. 18 Packet Pg. 391 of 428
Fund ALL - Portfolio Listings
Page 9
Purchase Current Maturity Days ToYTMYTMPar Value Market ValueCUSIPInvestment #Issuer Date Book Value
Federal Agency Bonds
31422XRK0 2634 Federal Agricultural Mortgage 01/04/2022 1,500,000.00 1,500,000.00 1,382,190.00 1.320 1.301 1.320 01/04/2027 1,099
2640 Call
1787 893,727.00 84
1822 502,598.67 500,000.00 492,690.00 280
2314 1,038,025.60 1,000,000.00 963,630.00 945
2371 Call 1,241,795.18 2,373
602
602
624
637
637
2,366
1,495,890.00
992,130.00
992,350.00
992,350.00
1,996,160.00
863,020.00
900,000.00 769,149.00
1,500,000.00 1,500,000.00 1,247,670.00
Portfolio CPA
Run Date: 01/21/2024 - 18:49 FI (PRF_FI) 7.3.11
Item 14
Attachment B - Investment Portfolio
Item 14: Staff Report Pg. 19 Packet Pg. 392 of 428
Fund ALL - Portfolio Listings
Page 10
Purchase Current Maturity Days ToYTMYTMPar Value Market ValueCUSIPInvestment #Issuer Date Book Value
Federal Agency Bonds
3130AJSR1 2375 Call Federal Home Loan Bank 07/09/2020 1,500,000.00 1,500,000.00 1,248,960.00 1.390 1.370 1.390 07/09/2030 2,381
2377 Call
604
637
604
637
2,367
1,224,435.00
2,864
921,310.00
922,450.00
922,860.00
918,090.00
924,230.00
936,150.00
941,920.00
942,040.00
1,423,920.00
1,496,910.00
2787 4
2794 Call 1,487
Portfolio CPA
Run Date: 01/21/2024 - 18:49 FI (PRF_FI) 7.3.11
Item 14
Attachment B - Investment Portfolio
Item 14: Staff Report Pg. 20 Packet Pg. 393 of 428
Fund ALL - Portfolio Listings
Page 11
Purchase Current Maturity Days ToYTMYTMPar Value Market ValueCUSIPInvestment #Issuer Date Book Value
Federal Agency Bonds
3130AUU28 2824 Federal Home Loan Bank 02/08/2023 1,000,000.00 1,000,000.00 999,460.00 5.000 4.931 5.000 02/08/2024 38
2844 Federal Home Loan Bank
2902 Call Federal Home Loan Bank 1,000,000.00 1,000,000.00 994,960.00 3,431
Fed. Home Loan Mortgage Corp.402,047.10
1,500,000.00 1,500,000.00 1,250,655.00
1,406,760.00 623
617
610
631
631
1,402,230.00 653
638
638
638
653
646
666
2,486
2,492
2,492
1,500,000.00 1,500,000.00 1,398,405.00 665
Portfolio CPA
Run Date: 01/21/2024 - 18:49 FI (PRF_FI) 7.3.11
Item 14
Attachment B - Investment Portfolio
Item 14: Staff Report Pg. 21 Packet Pg. 394 of 428
Fund ALL - Portfolio Listings
Page 12
Purchase Current Maturity Days ToYTMYTMPar Value Market ValueCUSIPInvestment #Issuer Date Book Value
Federal Agency Bonds
3134GW6N1 2440 Call Fed. Home Loan Mortgage Corp.11/05/2020 1,500,000.00 1,500,000.00 1,242,180.00 1.400 1.380 1.400 11/05/2030 2,500
2444 Call
2392 Call 1,000,000.00 1,000,000.00 939,730.00 605
940,250.00 604
1,410,375.00 604
604
630
638
633
2,408
2463 Call
1,043,730.00 670
1519 Tennessee Valley Authority 258
1589 Tennessee Valley Authority 830,406.79 775,000.00 808,890.75 670
1714 Tennessee Valley Authority 1,340,430.83 1,250,000.00 1,304,662.50 670
Subtotal and Average 198,788,258.46 198,355,594.59 178,632,300.01 1.587 1.610 1,560
Treasury Securities (Notes)
91282CBC4 2505 TB U.S. Treasury 02/26/2021 1,489,213.41 1,500,000.00 1,390,140.00 0.375 0.731 0.742 12/31/2025 730
1,483,245.00
Subtotal and Average 6,955,619.75 7,000,000.00 6,628,385.00 2.109 2.139 598
Municipal Bonds
010878AS5 2173 MUN County of Alameda 12/05/2019 302,708.32
1,439,948.56
505,928.16
116,361.37
290,000.00
1,500,000.00
505,000.00
110,000.00
286,894.10
1,431,720.00
494,940.40
107,123.50
4.000 2.139 2.168 08/01/2026 943
2,769
517
County of Alameda
Alameda County Joint Pws Auth.
882
Portfolio CPA
Run Date: 01/21/2024 - 18:49 FI (PRF_FI) 7.3.11
Item 14
Attachment B - Investment Portfolio
Item 14: Staff Report Pg. 22 Packet Pg. 395 of 428
Fund ALL - Portfolio Listings
Page 13
Purchase Current Maturity Days ToYTMYTMPar Value Market ValueCUSIPInvestment #Issuer Date Book Value
Municipal Bonds
010411CT1 2835 MUN State of Alabama 02/15/2023 980,477.99
503,112.94
936,391.20
546,318.01
1,762,702.82
207,535.81
349,564.47
466,442.85
920,431.12
248,406.93
565,965.83
1,010,239.98
2,000,000.00
321,190.50
203,344.70
450,697.79
178,223.97
295,538.98
286,220.57
124,941.23
184,710.70
941,324.31
257,700.59
980,052.18
561,956.31
597,772.17
156,058.91
421,673.81
504,645.95
401,877.46
976,539.74
1,000,000.00 975,450.00
494,435.00
934,070.40
558,920.25
1,620,727.50
207,642.50
320,827.50
438,329.50
880,679.20
243,763.20
568,234.90
924,010.00
1,868,440.00
310,581.50
191,280.60
437,775.00
167,428.80
271,251.00
260,398.80
117,408.75
183,196.20
939,270.00
265,137.00
908,690.00
483,477.50
552,498.00
156,541.10
429,385.00
429,040.00
366,180.00
889,970.40
3.450 4.142 4.200 11/01/2026 1,035
Antelope Valley Community Coll
2,039
Berkeley Unified School Dist.2,769
1,247
578
2,373
Burbank Unified School Distri.
1,308
1,004
1,065
Chabot-Las Positas CCD 578
Chabot-Las Positas CCD 1,308
Chabot-Las Positas CCD
Chaffey Community Clg District 2,343
Calleguas Municipal Water Dist 2,008
912
2,039
Contra Costa Community College
Portfolio CPA
Run Date: 01/21/2024 - 18:49 FI (PRF_FI) 7.3.11
Item 14
Attachment B - Investment Portfolio
Item 14: Staff Report Pg. 23 Packet Pg. 396 of 428
Fund ALL - Portfolio Listings
Page 14
Purchase Current Maturity Days ToYTMYTMPar Value Market ValueCUSIPInvestment #Issuer Date Book Value
Municipal Bonds
212204JK8 2244 MUN Contra Costa Community College 02/07/2020 1,510,032.34 1,500,000.00 1,348,440.00 2.263 2.100 2.130 08/01/2029 2,039
943
1,308
2,738
Federal Farm Credit Bank .
1646 MUN 762
2,769
578
943
578
943
397
State of Georgia 639
State of Georgia 1,004
State of Georgia
State of Georgia
State of Georgia
State of Georgia
City of Glendora 1,613
City of Glendora
City of Glendora
Glendale Unified School Dist.1,339
State of Hawaii
State of Hawaii 762
State of Hawaii 578
Portfolio CPA
Run Date: 01/21/2024 - 18:49 FI (PRF_FI) 7.3.11
Item 14
Attachment B - Investment Portfolio
Item 14: Staff Report Pg. 24 Packet Pg. 397 of 428
Fund ALL - Portfolio Listings
Page 15
Purchase Current Maturity Days ToYTMYTMPar Value Market ValueCUSIPInvestment #Issuer Date Book Value
Municipal Bonds
446201AE5 2560 MUN City of Huntington Beach 08/12/2021 1,010,107.93 1,000,000.00 921,130.00
921,130.00
700,688.10
161,197.75
467,242.70
433,340.00
485,590.00
286,138.20
974,920.00
812,330.40
917,714.65
966,240.00
983,120.00
293,847.00
305,195.00
855,640.00
229,667.50
1,378,005.00
252,634.25
1,126,960.00
1,003,860.00
1,546,320.00
438,124.00
253,665.00
1,014,660.00
1,005,200.00
497,680.00
243,863.20
555,754.50
548,561.00
932,980.00
1.344 0.909 0.921 06/15/2026 896
1,947
1,674
Los Altos Elementary Sch Distr
974
City of Los Angeles 974
City of Los Angeles 1,339
City of Los Angeles
City of Los Angeles
City of Los Angeles 3,166
City of Los Angeles
City of Los Angeles 244
Los Angeles Community College 2,404
943
943
2,039
1,277
State of Maryland 578
Milpitas Unified School Distr 1,674
Portfolio CPA
Run Date: 01/21/2024 - 18:49 FI (PRF_FI) 7.3.11
Item 14
Attachment B - Investment Portfolio
Item 14: Staff Report Pg. 25 Packet Pg. 398 of 428
Fund ALL - Portfolio Listings
Page 16
Purchase Current Maturity Days ToYTMYTMPar Value Market ValueCUSIPInvestment #Issuer Date Book Value
Municipal Bonds
62451FJE1 2708 MUN Mtn. View-Whisman School Dist.10/19/2022 1,061,992.10 1,135,000.00 1,065,367.75 1.893 4.487 4.550 09/01/2026 974
1,308
943
1,308
2,404
943
2,039
State of Mississippi
State of Mississippi
State of Mississippi 335
State of Mississippi 670
State of Mississippi 305
State of Mississippi 2,830
State of Mississippi
City of Napa Solid Waste 213
196
804
1,169
1,141
1,141
City of Oakland
City of Oakland
Portfolio CPA
Run Date: 01/21/2024 - 18:49 FI (PRF_FI) 7.3.11
Item 14
Attachment B - Investment Portfolio
Item 14: Staff Report Pg. 26 Packet Pg. 399 of 428
Fund ALL - Portfolio Listings
Page 17
Purchase Current Maturity Days ToYTMYTMPar Value Market ValueCUSIPInvestment #Issuer Date Book Value
Municipal Bonds
672240WX2 2316 MUN City of Oakland 03/16/2020 1,492,296.63 1,500,000.00 1,348,050.00 2.070 2.151 2.181 01/15/2029 1,841
City of Oakland
City of Oakland Pension
1,308
State of Ohio 974
City of Ontario (Pub Fin Auth)943
592
1,308
State of Oregon
State of Oregon
State of Oregon 1,247
State of Oregon
State of Oregon
State of Oregon
State of Oregon
State of Oregon
State of Oregon
State of Oregon 943
State of Oregon 2,861
State of Oregon
Oxnard Union High School Distr
City of Pacifica 882
Pasadena CA Public Finance Aut 851
1,065
Portfolio CPA
Run Date: 01/21/2024 - 18:49 FI (PRF_FI) 7.3.11
Item 14
Attachment B - Investment Portfolio
Item 14: Staff Report Pg. 27 Packet Pg. 400 of 428
Fund ALL - Portfolio Listings
Page 18
Purchase Current Maturity Days ToYTMYTMPar Value Market ValueCUSIPInvestment #Issuer Date Book Value
Municipal Bonds
697379TV7 2839 MUN Palo Alto Unified School Dist.02/21/2023 1,552,161.59 1,500,000.00 1,544,385.00 5.862 4.683 4.748 07/01/2027 1,277
943
2,404
State of Rhode Island 1,552
State of Rhode Island
Riverside Cmnty College Distt.
2,039
974
1,308
943
City of Santa Ana 1,308
Santa Barbara Unified School D
Santa Clarita Community Colleg 943
1,613
517
882
1,247
Portfolio CPA
Run Date: 01/21/2024 - 18:49 FI (PRF_FI) 7.3.11
Item 14
Attachment B - Investment Portfolio
Item 14: Staff Report Pg. 28 Packet Pg. 401 of 428
Fund ALL - Portfolio Listings
Page 19
Purchase Current Maturity Days ToYTMYTMPar Value Market ValueCUSIPInvestment #Issuer Date Book Value
Municipal Bonds
797356DL3 2606 MUN San Diego Unified Sch District 10/23/2021 895,819.95
268,431.30
242,644.71
892,860.75
267,248.94
1,991,652.17
498,734.57
198,805.25
876,413.46
209,705.38
248,984.12
744,419.66
1,144,122.04
187,494.96
430,000.00
435,000.00
432,444.68
401,929.58
255,385.92
1,029,269.62
2,106,101.60
244,891.84
228,711.95
1,488,943.98
1,105,312.18
479,897.47
1,024,736.28
532,997.07
526,930.88
328,629.20
1,001,691.01
900,000.00
270,000.00
260,000.00
1,000,000.00
255,000.00
1,980,000.00
500,000.00
200,000.00
875,000.00
210,000.00
250,000.00
750,000.00
1,275,000.00
225,000.00
430,000.00
435,000.00
435,000.00
400,000.00
250,000.00
1,000,000.00
2,105,000.00
245,000.00
230,000.00
1,420,000.00
1,120,000.00
575,000.00
1,000,000.00
500,000.00
635,000.00
305,000.00
1,000,000.00
756,549.00
236,169.00
240,047.60
874,700.00
238,812.60
1,835,519.40
423,455.00
185,366.00
807,187.50
199,107.30
230,625.00
691,875.00
1,126,577.25
194,035.50
394,783.00
392,617.95
407,608.05
383,248.00
223,207.50
1,008,630.00
2,027,283.40
231,478.45
221,508.40
1,454,349.80
995,780.80
484,242.00
1,015,050.00
528,035.00
545,166.55
327,701.15
1,063,520.00
1.984 2.024 2.053 07/01/2031 2,738
1,643
2,769
851
486
851
851
1,582
1,308
547
2,008
531
896
531
896
1,992
1,627
Portfolio CPA
Run Date: 01/21/2024 - 18:49 FI (PRF_FI) 7.3.11
Item 14
Attachment B - Investment Portfolio
Item 14: Staff Report Pg. 29 Packet Pg. 402 of 428
Fund ALL - Portfolio Listings
Page 20
Purchase Current Maturity Days ToYTMYTMPar Value Market ValueCUSIPInvestment #Issuer Date Book Value
Municipal Bonds
79772EBC2 1937 MUN San Francisco Cmnty Facs Dist 03/02/2018 674,752.05
371,313.90
138,357.02
304,658.67
584,945.31
1,321,265.00
503,825.19
509,396.88
352,608.50
585,000.00
499,044.16
221,458.10
500,936.75
357,059.46
343,641.70
315,000.00
500,000.00
997,012.56
858,688.13
757,524.10
421,486.15
334,376.33
576,126.47
610,424.12
773,379.71
651,569.76
213,054.67
665,384.02
2,000,658.67
1,500,494.00
998,118.03
680,000.00
350,000.00
130,000.00
300,000.00
575,000.00
1,295,000.00
500,000.00
480,000.00
405,000.00
585,000.00
500,000.00
245,000.00
545,000.00
350,000.00
345,000.00
315,000.00
500,000.00
1,000,000.00
990,000.00
850,000.00
455,000.00
315,000.00
570,000.00
600,000.00
850,000.00
650,000.00
215,000.00
825,000.00
2,000,000.00
1,500,000.00
1,000,000.00
648,652.00
332,258.50
124,950.80
295,866.00
493,407.50
1,214,192.00
492,455.00
422,976.00
356,886.00
502,134.75
429,175.00
220,438.75
501,405.45
332,962.00
318,628.20
309,128.40
460,545.00
938,040.00
865,972.80
758,506.00
421,967.00
303,426.90
480,071.10
529,248.00
762,305.50
595,465.00
195,736.00
668,398.50
1,942,180.00
1,456,635.00
968,100.00
3.250 3.451 3.499 09/01/2027 1,339
2,800
182
2,738
San Juan Unified School Dist
974
San Jose Financing Authority 882
1,339
1,674
1,674
Santa Monica-Malibu USD 943
Santa Monica-Malibu USD 2,769
San Mateo Cnty Comm. College D
244
609
Portfolio CPA
Run Date: 01/21/2024 - 18:49 FI (PRF_FI) 7.3.11
Item 14
Attachment B - Investment Portfolio
Item 14: Staff Report Pg. 30 Packet Pg. 403 of 428
Fund ALL - Portfolio Listings
Page 21
Purchase Current Maturity Days ToYTMYTMPar Value Market ValueCUSIPInvestment #Issuer Date Book Value
Municipal Bonds
799017UW6 1940 MUN San Mateo Foster City SCH Dist 03/09/2018 995,533.43
1,346,177.91
1,578,003.65
500,000.00
178,922.24
1,290,650.03
375,697.25
1,160,383.81
750,000.00
200,629.29
386,927.88
745,504.46
822,482.07
345,160.63
161,229.81
179,443.78
412,911.21
274,665.09
156,580.91
413,966.44
1,755,000.00
1,507,611.40
866,673.30
135,000.00
135,000.00
504,885.10
250,000.00
356,351.12
1,003,877.60
1,653,483.94
701,478.04
1,000,000.00 968,100.00
1,240,551.20
1,447,484.15
455,880.00
163,318.75
1,210,821.15
381,539.50
1,069,810.50
685,972.50
182,926.00
321,824.10
632,497.50
680,781.75
307,818.00
147,250.00
172,074.60
381,403.40
257,032.50
148,129.10
394,937.40
1,725,972.30
1,293,450.00
858,591.80
121,390.65
123,560.10
435,280.00
221,072.50
325,726.70
948,090.00
1,588,092.00
673,736.00
2.699 2.959 3.000 09/01/2025 609
1,705
1,705
974
943
943
2,070
943
2,769
1,308
213
2,404
1,705
943
State of Tennessee 578
State of Tennessee 578
Portfolio CPA
Run Date: 01/21/2024 - 18:49 FI (PRF_FI) 7.3.11
Item 14
Attachment B - Investment Portfolio
Item 14: Staff Report Pg. 31 Packet Pg. 404 of 428
Fund ALL - Portfolio Listings
Page 22
Purchase Current Maturity Days ToYTMYTMPar Value Market ValueCUSIPInvestment #Issuer Date Book Value
Municipal Bonds
880541QU4 2001 MUN State of Tennessee 12/20/2018 205,907.01
373,173.13
573,763.40
165,398.29
451,281.66
1,525,839.70
1,002,884.95
1,349,591.17
252,999.72
254,591.68
1,058,082.04
515,277.73
1,521,164.75
1,015,935.48
416,078.92
208,209.52
166,183.48
714,165.17
490,722.57
507,384.22
2,118,579.94
1,545,968.90
1,029,933.81
875,809.03
1,000,000.00
470,612.21
205,000.00
445,000.00
650,000.00
205,000.00
500,000.00
1,500,000.00
940,000.00
1,265,000.00
250,000.00
245,000.00
1,000,000.00
500,000.00
1,500,000.00
1,000,000.00
440,000.00
230,000.00
165,000.00
698,684.05
485,000.00
500,000.00
2,000,000.00
1,500,000.00
1,000,000.00
865,000.00
1,000,000.00
500,000.00
203,450.20
376,087.30
580,833.50
168,356.25
446,795.00
1,462,005.00
903,838.20
1,216,335.45
246,382.50
238,590.80
892,620.00
485,755.00
1,464,525.00
976,350.00
398,428.80
207,621.00
164,551.20
690,202.03
483,627.45
498,585.00
1,755,640.00
1,424,535.00
949,690.00
873,823.00
930,580.00
465,290.00
3.728 2.860 2.900 08/01/2024 213
3,074
1,308
2,769
1,308
639
State of Texas 2,100
State of Texas
State of Texas
State of Texas 639
State of Texas 2,465
State of Texas
University of California 500
500
1,230
State of Utah 547
State of Washington 213
213
2,677
State of Wisconsin
State of Wisconsin 851
State of Wisconsin 2 851
1,308
Subtotal and Average 220,915,246.84 221,423,684.05 207,679,271.88 2.460 2.494 1,334
Supranationals (World Bank) Bonds
4581X0DV7 2528 IADB Inter-American Dev. Bank 04/20/2021 1,997,835.39 2,000,000.00 1,854,220.00 0.875 0.910 0.923 04/20/2026 840
1,108
Portfolio CPA
Run Date: 01/21/2024 - 18:49 FI (PRF_FI) 7.3.11
Item 14
Attachment B - Investment Portfolio
Item 14: Staff Report Pg. 32 Packet Pg. 405 of 428
Fund ALL - Portfolio Listings
Page 23
Purchase Current Maturity Days ToYTMYTMPar Value Market ValueCUSIPInvestment #Issuer Date Book Value
Supranationals (World Bank) Bonds
4581X0EB0 2655 IADB Inter-American Dev. Bank 01/14/2022 998,834.55
1,500,340.65
1,500,000.00
1,500,000.00
1,497,304.16
1,492,001.99
1,493,965.41
1,493,771.12
1,492,785.51
984,664.76
1,000,000.00 926,040.00
1,397,910.00
1,386,810.00
1,383,450.00
1,397,910.00
1,397,910.00
1,386,810.00
1,386,810.00
1,386,810.00
920,760.00
1.500 1.518 1.540 01/13/2027 1,108
Intl Bk Recon & Development
771
779
666
666
771
771
771
785
998,990.74 967,440.00 441
1,983,407.61 1,986,600.00 1,368
1,487,665.84 1,489,950.00 1,368
1,354,046.08 1,348,575.00
1,000,000.00
2454 IFC 1,407,945.00 684
2483 IFC 745
2502 IFC 745
2503 IFC 787
2514 IFC 804
2515 IFC 812
2517 IFC 812
2532 IFC 865
2654 IFC 1,011
Subtotal and Average 43,888,665.59
615,665,374.43
44,500,000.00
616,711,287.92
41,446,155.00
576,479,076.85
1.559 1.581 887
Total Investments and Average 1,142
Portfolio CPA
Run Date: 01/21/2024 - 18:49 FI (PRF_FI) 7.3.11
Item 14
Attachment B - Investment Portfolio
Item 14: Staff Report Pg. 33 Packet Pg. 406 of 428
1 General Investment Guidelines:Full Compliance
a) The max. stated final maturity of individual securities in the portfolio should be 10 years.
b) A max. of 30 percent of the par value of the portfolio shall be invested in securities with maturities 24.9%
beyond 5 years.
c) The City shall maintain a minimum of one month's cash needs in short term investments.
d) At least $50 million shall be maintained in securities maturing in less than 2 years.
Plus two managed pool accounts which provide instant liquidity:
- Local Agency Investment Fund (LAIF) - maximum investment limit is $75 million $43.8 million
- Fidelity Investments $28.1 million
e) Should market value of the portfolio fall below 95 percent of the book value, report this fact within a 93.6%
reasonable time to the City Council and evaluate if there are risk of holding securities to maturity.
d) Commitments to purchase securities newly introduced on the market shall be made no more than
three (3) working days before pricing.
f) Whenever possible, the City will obtain three or more quotations on the purchase or sale of
comparable securities (excludes new issues, LAIF, City of Palo Alto bonds, money market
accounts, and mutual funds).
2 U.S. Government Securities:Full Compliance
a) There is no limit on purchase of these securities.
b) Securities will not exceed 10 years maturity.
3 U.S. Government Agency Securities:Full Compliance
a) There is no limit on purchase of these securities except for:
Callable and Multi-step-up securities provided that:
- The potential call dates are known at the time of purchase;
- the interest rates at which they "step-up" are known at the time of purchase; and
- the entire face value of the security is redeemed at the call date.
- No more than 25 percent of the par value of portfolio.24.84%
b) Securities will not exceed 10 years maturity.
4 California State, California Local Government Agencies, and other United States State Bonds:Full Compliance
a)Having at time of investment a minimum Double A (AA/Aa2) rating as provided by a nationally
recognized rating service (e.g., Moody’s, Fitch, and/or Standard and Poor’s).
)May not exceed 40 percent of the par value of the portfolio.35.82%
5 Certificates of Deposit (CD):Full Compliance
a)May not exceed 20 percent of the par value of the portfolio;None Held
b)No more than 10 percent of the par value of the portfolio in collateralized CDs in any institution.
c) Purchase collateralized deposits only from federally insured large banks that are rated by
a nationally recognized rating agency (e.g. Moody's, Fitch, and/or Standard & Poor's).
d) For non-rated banks, deposit should be limited to amounts federally insured (FDIC)
e) Rollovers are not permitted without specific instruction from authorized City staff.
6 Banker's Acceptance Notes (BA):Full Compliance
a)No more than 30 percent of the par value of the portfolio.None Held
b) Not to exceed 180 days maturity.
c) No more than $5 million with any one institution.
$173.1 million
1.14%
Attachment C
Investment Policy Compliance
As of December 31, 2023
Investment Policy Requirements
Compliance
Check / Actual
Item 14
Attachment C -
Investment Policy
Compliance
Item 14: Staff Report Pg. 34 Packet Pg. 407 of 428
Attachment C
Investment Policy Compliance
As of December 31, 2023
Investment Policy Requirements
Compliance
Check / Actual
7 Commercial Paper:Full Compliance
a)No more than 15 percent of the par value of the portfolio.None Held
b) Having highest letter or numerical rating from a nationally recognized rating service.
c) Not to exceed 270 days maturity.
d)No more than $3 million or 10 percent of the outstanding commercial paper of any one institution,
whichever is lesser.
8 Short-Term Repurchase Agreement (REPO):Full Compliance
a) Not to exceed 1 year.None Held
b) Market value of securities that underlay a repurchase agreement shall be valued at 102 percent or
greater of the funds borrowed against those securities.
9 Money Market Deposit Accounts Full Compliance
a) Liquid bank accounts which seek to maintain a net asset value of $1.00.
10 Mutual Funds:Full Compliance
a)No more than 20 percent of the par value of the portfolio.None Held
b)No more than 10 percent of the par value with any one institution.
11 Negotiable Certificates of Deposit (NCD):Full Compliance
a)No more than 20 percent of the par value of the portfolio.7.17%
b) No more than $5 million in any one institution.Federally Insured
12 Medium-Term Corporate Notes:Full Compliance
a)No more than 10 percent of the par value of the portfolio.4.75%
b) Not to exceed 5 years maturity.
c) Securities eligible for investment shall have a minimum rating of AA or Aa2 from a nationally
recognized rating service.
d) No more than $5 million of the par value may be invested in securities of any single issuer, other
than the U.S. Government, its agencies and instrumentality.
e) If securities owned by the City are downgraded by either rating agencies to a level below AA it
shall be the City's policy to review the credit situation and make a determination as to whether
to sell or retain such securities.
13 Supranational Organizations Securities:Full Compliance
a) Securities will not exceed 5 years maturity
b)No more than 20 percent of the par value of the portfolio.7.22%
c)No more than 10 percent in any one institution.Full Compliance
d) Securities eligible for investment shall have a minimum rating of AA or Aa2 from a nationally
recognized rating service.
14 Prohibited Investments:
a) Reverse Repurchase Agreements
b) Derivatives as defined in Appendix B of the Investment Policy
15 All securities shall be delivered to the City's safekeeping custodian, and held in the name of the
City, with the exception of :
- Certificates of Deposit, Mutual Funds, and Local Agency Investment Fund (LAIF)
Full Compliance
None Held
Full Compliance
Item 14
Attachment C -
Investment Policy
Compliance
Item 14: Staff Report Pg. 35 Packet Pg. 408 of 428
City Council
Staff Report
From: City Manager
Report Type: INFORMATION REPORTS
Lead Department: Administrative Services
Meeting Date: February 12, 2024
Report #:2401-2567
TITLE
Sales Tax Digest Summary Calendar 2023 (July 2023 - Sept 2023)
DISCUSSION
This report transmits information regarding the City of Palo Alto’s sales tax receipts for the third
quarter (July - September) of 2023. Further and more detailed levels of information can be
found in the attached City of Palo Alto Sales Tax Digest Summary and Legislative Update 2023
Q3 (Attachment A).
The City’s sales tax cash receipts of $9.6 million for the third quarter (July to September 2023) is
$0.90 million (10.3%) higher than the same quarter of the prior year (see Attachment A,
Historical Analysis by Calendar Quarter). When adjusted for non-period related payments, the
overall economic quarter over quarter sales tax activity (Q3 2022 to Q3 2023) in Palo Alto
increased by $0.96 million (13.9%). Statewide, Q3 2023 sales tax cash receipts decreased 3.2%
from Q3 2022.
For the year ending in the third quarter of 2023, sales tax cash receipts for the city increased by
9.7% from the prior year. When adjusted for non-period related payments, the overall
economic sales tax activity in Palo Alto for the year increased by 6.0%. In comparison, statewide
sales tax cash receipts decreased by 0.3% and Northern California decreased by 0.8%.
The third quarter includes $1.5 million of sales tax receipts from the county pool. The City’ s
share of the county pool for this quarter is 6.7%, up 0.8% from the third quarter of 2022.
County pools are primarily from online purchases from out-of-state companies, remote sellers
who ship merchandise to California/ County destinations, and private vehicle sales that are not
directly allocated to a jurisdiction. County pools are allocated to local jurisdictions based on
each jurisdiction’ s share of total sales taxes.
ATTACHMENTS
Attachment A: 2023 Q3 Sales Tax Data and Legislative Update
APPROVED BY:
Kiely Nose, Assistant City Manager
Item 15
Item 15 Staff Report
Item 15: Staff Report Pg. 1 Packet Pg. 409 of 428
City of Palo Alto
Sales Tax Digest Summary
Collections through November 2023
Sales July through September 2023 (2023Q3)
www.avenuinsights.com (800) 800-8181 Page 1
California Overview
For the year ending in the third quarter of 2023, cash receipts decreased 0.3% statewide, and decreased
0.4% in S.F. Bay Area. However, when adjusted for non-period related payments, the overall economic
sales tax activity for the year ending in third quarter of 2023 decreased by 1.3% statewide and
decreased by 3.2% in S.F. Bay Area.
City of Palo Alto
For the year ending in the third quarter of 2023, sales tax cash receipts for the city increased by 9.7% from
the prior year. However, when adjusted for non-period related payments, the overall economic sales tax
activity in Palo Alto for the year ending in third quarter of 2023 increased by 6.0%.
Same quarter sales tax cash receipts decreased by 3.2% in California from Q3 2022 to Q3 2023. Overall,
the decline in sales tax cash receipts in California in Q3 2023 when compared to the same quarter in the
prior year was due to a combination of factors, including consumer responses to higher prices and higher
interest rates. While inflation rates have been declining, the cumulative impact of higher prices and
economic uncertainty have started to impact consumer confidence and ultimately impacted consumer
demand in Q3 2023. Interest rate increases made financing larger purchases, such as new autos, more
expensive.
The Palo Alto citywide sales tax cash receipts increased by 10.3% over the Q3 2022 to Q3 2023 period.
Palo Alto’s growth bucked the overall statewide decreasing trend during the same period. Key reasons for
the Palo Alto increase during this period (while the rest of the state was down) were a 11.6% increase in
restaurants economic activity, a 14.5% increase in the auto leasing segment, along with an increase in
non-period cash payments.
The Transportation Category in Palo Alto saw the largest decline in taxable sales on an economic basis
over the past year, falling by 5.7%. This was largely driven by a 6.9% year-over-year decline in taxable sales
of new autos. The average price of a new car in California was $47,899 in 2023Q3, down from $48,259 in
2022Q3, a 0.7% decrease. The average price of a Tesla in California declined by $14,317 in the year ended
2023Q3, from $65,000 in 2022Q3 to $50,683 in 2023Q3, a 22.0% decline. The decrease in the
Transportation category for the Palo Alto can also be attributed to CDTFA’s determination that Tesla had
not been reporting the local tax correctly based on Point-of-Sale criteria for auto dealerships.
Item 15
Attachment A - 2023 Q3
Sales Tax Data and
Legislative Update
Item 15: Staff Report Pg. 2 Packet Pg. 410 of 428
City of Palo Alto
www.avenuinsights.com (800) 800-8181 Page 2
% of Total / % Change Palo Alto California
Statewide S.F. Bay Area Sacramento
Valley Central Valley South Coast Inland Empire North Coast
General Retail 26.2 / -1.1 28.3 / 0.6 23.6 / -4.0 28.5 / 0.5 37.0 / 0.8 26.9 / 2.2 33.6 / -0.8 27.1 / 2.6
Food Products 17.2 / 10.4 21.0 / 2.7 23.0 / 4.0 16.6 / 2.2 14.7 / 2.8 22.9 / 3.1 17.6 / -2.0 18.2 / 1.4
Transportation 17.9 / -5.7 23.9 / -3.8 19.9 / -5.2 26.6 / -5.9 22.8 / -3.2 24.9 / -2.5 24.7 / -7.7 28.9 / -7.2
Business to Business 35.5 / 19.7 16.0 / -4.2 21.7 / -5.8 14.7 / 0.3 14.8 / -3.4 15.6 / -4.5 11.1 / -1.2 10.2 / -9.6
Misc/Other 3.2 / -12.0 10.8 / -4.0 11.7 / -6.2 1.1 / 1.8 0.7 / -6.9 1.1 / -0.4 13.0 / -6.0 1.0 / 11.0
Total 100.0 / 6.0 100.0 / -1.3 100.0 / -3.2 100.0 / -2.3 100.0 / -1.2 100.0 / -0.3 100.0 / -3.6 100.0 / -2.9
Palo Alto California
Statewide S.F. Bay Area Sacramento
Valley Central Valley South Coast Inland Empire North Coast
Largest Segment Leasing Restaurants Restaurants Miscellaneous
Retail
Miscellaneous
Retail Restaurants Miscellaneous
Retail Restaurants
% of Total / % Change 21.9 / 14.5 15.1 / 5.1 17.0 / 6.2 11.7 / 10.5 14.8 / 11.0 16.9 / 5.3 16.5 / 1.6 11.5 / 1.4
2nd Largest Segment Restaurants Auto Sales -
New
Auto Sales -
New Restaurants Department
Stores
Auto Sales -
New Restaurants Auto Sales -
New
% of Total / % Change 15.4 / 11.6 11.5 / -0.3 9.6 / -2.7 11.3 / 3.1 10.9 / -1.9 12.8 / 0.4 11.3 / 2.4 11.4 / 0.9
3rd Largest Segment Auto Sales -
New
Miscellaneous
Retail
Department
Stores
Auto Sales -
New Restaurants Miscellaneous
Retail
Auto Sales -
New
Department
Stores
% of Total / % Change 14.0 / -6.9 9.9 / 9.4 7.7 / -2.9 11.3 / -1.1 9.8 / 4.8 8.6 / 14.9 11.1 / -1.7 10.8 / 20.0
ECONOMIC CATEGORY ANALYSIS FOR YEAR ENDED 3rd Quarter 2023
ECONOMIC SEGMENT ANALYSIS FOR YEAR ENDED 3rd Quarter 2023
Regional Overview
The first chart on page two shows adjusted economic benchmark year amounts, which means that it
shows the year ended third quarter of 2023 compared to the year ended third quarter of 2022 (benchmark
years are rolling annual comparisons through the current quarter). The growth rates are different
between the state and Palo Alto because the sales tax from businesses in Palo Alto performed better
overall than the statewide average.
Regional Overview Chart (Economic)
BENCHMARK YEAR 2023Q3 COMPARED TO BENCHMARK YEAR 2022Q3
Item 15
Attachment A - 2023 Q3
Sales Tax Data and
Legislative Update
Item 15: Staff Report Pg. 3 Packet Pg. 411 of 428
City of Palo Alto
www.avenuinsights.com (800) 800-8181 Page 3
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
Quarterly Benchmark Year
Leasing
22.0%
Restaurants
15.5%
Auto Sales -New
14.0%
Office Equipment
8.2%Apparel Stores
6.6%
All Other
33.8%
Net Pools & Adjustments
23.9%
Gross Historical Sales Tax Cash Receipts by Benchmark Year and Quarter (Before Adjustments)
Net Cash Receipts for Benchmark Year third Quarter 2023: $36,691,136
*Benchmark year (BMY) is the sum of the current and 3 previous quarters (2023Q3 BMY is sum of 2023 Q3, 2023 Q2, 2023 Q1, 2022 Q4)
Item 15
Attachment A - 2023 Q3
Sales Tax Data and
Legislative Update
Item 15: Staff Report Pg. 4 Packet Pg. 412 of 428
City of Palo Alto
www.avenuinsights.com (800) 800-8181 Page 2
Anderson Honda Macy's Department Store Shreve & Co.
Apple Stores Magnussen's Toyota of Palo Alto Stanford Health Care
Arco AM/PM Mini Marts Neiman Marcus Tesla
Audi Palo Alto Nordstrom Department Store Tesla Lease Trust
Bloomingdale's Richemont Tiffany & Company
Hengehold Trucks Rivian Automotive Union 76 Service Stations
Hermes Sephora Varian Medical Systems
HP Enterprise Services Shell Service Stations Volvo Cars Palo Alto
Louis Vuitton
TOP 25 SALES/USE TAX CONTRIBUTORS
The following list identifies Palo Alto’s Top 25 Sales/Use Tax contributors. The list is in alphabetical order
and represents the year ended third quarter of 2023. The Top 25 Sales/Use Tax contributors generate
61.9% of Palo Alto’s total sales and use tax revenue.
Item 15
Attachment A - 2023 Q3
Sales Tax Data and
Legislative Update
Item 15: Staff Report Pg. 5 Packet Pg. 413 of 428
City of Palo Alto
www.avenuinsights.com (800) 800-8181 Page 5
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
Benchmark Year 2023Q3 Benchmark Year 2022Q3
Sales Tax from Largest Non-Confidential Sales Tax Segments (Economic)
Item 15
Attachment A - 2023 Q3
Sales Tax Data and
Legislative Update
Item 15: Staff Report Pg. 6 Packet Pg. 414 of 428
City of Palo Alto
www.avenuinsights.com (800) 800-8181 Page 5
Economic Category % 2023Q3 2023Q2 2023Q1 2022Q4 2022Q3 2022Q2 2022Q1 2021Q4 2021Q3 2021Q2 2021Q1
Business To Business 27.3%2,619,833 2,439,519 2,350,567 2,571,178 2,194,817 2,095,020 2,031,199 2,136,501 1,689,561 1,559,814 1,700,725
Miscellaneous/Other 19.5%1,870,170 1,546,096 1,302,322 1,517,005 1,597,816 1,724,861 1,701,538 1,687,189 1,812,731 1,743,358 1,558,859
General Retail 19.1%1,834,297 2,017,885 1,640,927 2,305,038 1,802,777 1,920,316 1,639,417 2,282,253 1,687,461 1,740,666 1,153,240
Food Products 13.3%1,277,173 1,349,926 1,195,458 1,260,287 1,230,824 1,227,240 1,018,577 1,083,309 999,729 912,939 635,705
Subtotal Economic (Local Business)79.3%7,601,473 7,353,426 6,489,274 7,653,508 6,826,234 6,967,438 6,390,731 7,189,252 6,189,482 5,956,778 5,048,529
Net Pools & Adjustments 20.7%1,986,175 2,084,763 1,586,938 1,935,580 1,862,181 686,044 1,721,924 1,806,328 584,508 1,513,663 1,741,273
Total Cash Receipts 100.0%9,587,647 9,438,189 8,076,212 9,589,088 8,688,414 7,653,481 8,112,655 8,995,580 6,773,990 7,470,441 6,789,802
Economic Segment % 2023Q3 2023Q2 2023Q1 2022Q4 2022Q3 2022Q2 2022Q1 2021Q4 2021Q3 2021Q2 2021Q1
Miscellaneous/Other 48.4%4,635,983 4,197,978 3,818,384 4,490,992 4,087,158 4,008,008 3,949,786 3,969,954 3,752,178 3,570,610 3,406,995
Restaurants 12.0%1,154,189 1,214,502 1,073,621 1,114,637 1,102,248 1,093,944 902,707 947,771 884,911 799,544 540,244
Miscellaneous Retail 5.0%480,649 512,077 448,322 545,797 381,616 479,710 432,956 679,381 412,016 514,516 338,032
Apparel Stores 5.0%478,973 509,894 423,470 538,573 435,730 495,508 392,724 540,782 406,274 398,447 264,318
Department Stores 4.5%435,388 492,374 356,626 533,032 423,601 454,349 367,144 525,295 388,703 384,763 237,522
Service Stations 2.4%229,911 222,029 192,723 215,640 233,387 250,715 191,755 190,610 181,460 157,268 116,258
Food Markets 1.1%103,251 111,465 101,978 116,810 99,811 104,253 91,634 108,203 90,773 89,773 74,397
Business Services 0.9%83,130 93,106 74,150 98,027 62,683 80,950 62,025 227,256 73,169 41,858 70,763
Subtotal Economic (Local Business)79.3%7,601,473 7,353,426 6,489,274 7,653,508 6,826,234 6,967,438 6,390,731 7,189,252 6,189,482 5,956,778 5,048,529
Net Pools & Adjustments 20.7%1,986,175 2,084,763 1,586,938 1,935,580 1,862,181 686,044 1,721,924 1,806,328 584,508 1,513,663 1,741,273
Total Cash Receipts 100.0%9,587,647 9,438,189 8,076,212 9,589,088 8,688,414 7,653,481 8,112,655 8,995,580 6,773,990 7,470,441 6,789,802
Historical Analysis by Calendar Quarter
The chart above shows the categories and segments in quarterly economic basis amounts. The total amount is the net cash receipts, and it was obtained by
adding up the categories/segments with the “Net Pools & Adjustments” amount.
Item 15
Attachment A - 2023 Q3 Sales Tax
Data and Legislative Update
Item 15: Staff Report Pg. 7 Packet Pg. 415 of 428
City of Palo Alto
www.avenuinsights.com (800) 800-8181 Page 7
Economic Category % 2023Q3 2022Q3 2021Q3 2020Q3 2019Q3 2018Q3 2017Q3 2016Q3 2015Q3 2014Q3
Business To Business 28.7%10,537,037 8,801,184 7,087,412 8,271,109 8,206,755 6,135,995 5,533,774 5,274,809 4,252,383 4,537,394
Miscellaneous/Other 17.0%6,254,742 6,703,263 6,886,475 5,536,429 8,213,787 7,119,601 6,064,700 6,214,339 5,685,238 5,340,922
General Retail 21.0%7,715,221 7,711,008 6,188,795 5,169,077 7,806,118 8,438,880 8,410,442 8,066,588 8,097,731 8,085,021
Food Products 13.9%5,101,072 4,618,590 3,229,004 3,381,024 4,912,510 4,799,026 4,641,731 4,623,265 4,411,228 4,126,302
Subtotal Economic (Local Business)80.7%29,608,071 27,834,045 23,391,686 22,357,638 29,139,170 26,493,501 24,650,648 24,179,001 22,446,580 22,089,640
Net Pools & Adjustments 19.3%7,083,065 5,616,086 4,983,730 5,500,512 5,787,830 5,476,835 4,896,415 4,110,008 4,201,030 3,612,493
Total 100.0%36,691,136 33,450,131 28,375,417 27,858,150 34,927,000 31,970,336 29,547,063 28,289,009 26,647,610 25,702,133
Economic Segment % 2023Q3 2022Q3 2021Q3 2020Q3 2019Q3 2018Q3 2017Q3 2016Q3 2015Q3 2014Q3
Miscellaneous/Other 48.2%17,688,682 16,315,061 14,908,971 14,585,390 17,361,346 14,617,927 12,927,875 12,448,262 11,022,846 11,018,397
Restaurants 12.5%4,580,374 4,105,455 2,788,501 2,900,521 4,337,084 4,196,932 4,040,236 4,021,805 3,835,898 3,602,981
Miscellaneous Retail 5.2%1,893,775 2,024,139 1,754,067 1,220,669 1,658,961 1,688,462 2,034,384 1,992,497 1,519,840 1,518,777
Apparel Stores 5.3%1,947,222 1,873,085 1,433,338 1,193,933 1,951,720 1,931,597 1,721,857 1,631,712 1,656,560 1,663,440
Department Stores 5.0%1,817,415 1,774,002 1,326,441 1,014,928 1,842,137 2,085,700 2,032,059 2,188,368 2,402,334 2,376,717
Service Stations 2.4%866,745 866,857 566,228 505,818 693,546 671,528 601,794 554,825 668,928 784,615
Business Services 1.0%380,071 471,450 269,485 550,605 845,213 819,254 790,083 832,423 839,442 670,259
Food Markets 1.2%433,789 403,997 344,656 385,774 449,163 482,100 502,359 509,109 500,731 454,455
Subtotal Economic (Local Business)80.7%29,608,071 27,834,045 23,391,686 22,357,638 29,139,170 26,493,501 24,650,648 24,179,001 22,446,580 22,089,640
Net Pools & Adjustments 19.3%7,083,065 5,616,086 4,983,730 5,500,512 5,787,830 5,476,835 4,896,415 4,110,008 4,201,030 3,612,493
Total 100.0%36,691,136 33,450,131 28,375,417 27,858,150 34,927,000 31,970,336 29,547,063 28,289,009 26,647,610 25,702,133
Historical Analysis by Calendar BMY from 2014Q3 to 2023Q3
The chart above shows the categories and segments in benchmark year economic basis amounts. The total amount is the net cash receipts, and it was obtained
by adding up the categories/segments with the “Net Pools & Adjustments” amount. Benchmark year (BMY) is the sum of the current and 3 previous quarters
(2023Q3 BMY is sum of 2023 Q3, 2023 Q2, 2023 Q1, 2022 Q4).
Item 15
Attachment A - 2023 Q3 Sales Tax
Data and Legislative Update
Item 15: Staff Report Pg. 8 Packet Pg. 416 of 428
City of Palo Alto
www.avenuinsights.com (800) 800-8181 Page 8
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Campbell -2.3%1.6%-5.4%-14.2%-5.5%2,621,244 2,734,865 -4.2%I.T. Infrastructure Office Equipment Light Industry Electronic Equipment
Cupertino 3.0%7.6%11.8%-2.5%11.0%8,679,509 8,777,018 -1.1%Restaurants Service Stations I.T. Infrastructure Office Equipment
Gilroy -2.6%3.0%8.3%16.9%-11.9%4,574,449 4,463,250 2.5%Auto Sales - New Heavy Industry Bldg.Matls-Whsle Service Stations
Los Altos -4.8%-3.1%-13.6%-49.6%-4.4%596,170 666,060 -10.5%Food Markets Auto Parts/Repair Electronic Equipment Service Stations
Los Gatos -8.3%9.2%-1.0%-8.1%-49.9%1,406,816 1,485,590 -5.3%Food Processing Eqp Liquor Stores Miscellaneous Other Furniture/Appliance
Milpitas -0.9%3.7%1.2%-20.4%-6.5%5,852,181 6,231,427 -6.1%Restaurants Auto Sales - New Office Equipment Furniture/Appliance
Morgan Hill 4.2%-0.1%11.4%5.0%1.7%2,790,740 2,631,056 6.1%Auto Sales - New Misc. Vehicle Sales Auto Parts/Repair Energy Sales
Mountain View 5.8%-5.0%-12.4%7.0%10.3%4,920,160 4,992,780 -1.5%Business Services Auto Parts/Repair Auto Sales - New Office Equipment
Palo Alto -1.3%3.1%21.7%29.7%0.4%7,840,790 6,881,458 13.9%Office Equipment Auto Sales - New Furniture/Appliance Bldg.Matls-Whsle
San Jose -2.5%3.4%-7.9%13.4%3.0%50,232,059 49,442,213 1.6%Office Equipment Miscellaneous Other Auto Sales - New Electronic Equipment
Santa Clara -6.4%14.4%-6.1%0.8%-10.6%12,959,968 13,097,600 -1.1%Light Industry Restaurants Office Equipment Heavy Industry
County of Santa Clara 3.2%-11.2%55.2%-31.8%8.6%1,294,694 1,345,716 -3.8%Misc. Vehicle Sales Health & Government Food Processing Eqp Heavy Industry
Saratoga -0.6%1.6%-5.3%-47.8%24.0%277,630 289,988 -4.3%Light Industry Auto Parts/Repair Business Services Service Stations
Sunnyvale 19.7%2.9%19.7%-4.6%11.4%7,488,182 7,145,562 4.8%Auto Sales - New Miscellaneous Retail Bldg.Matls-Whsle Office Equipment
Quarterly Analysis by Sales Tax Category: Change from 2022Q3 to 2023Q3 (Economic)
Unlike the chart on page one which showed a ‘benchmark year’ through third quarter of 2023, the chart above shows a comparison of one quarter only – third
quarter of 2023 to third quarter of 2022. This chart is for local ‘brick and mortar’ businesses and it excludes county pools and adjustments.
Item 15
Attachment A - 2023 Q3 Sales Tax
Data and Legislative Update
Item 15: Staff Report Pg. 9 Packet Pg. 417 of 428
City of Palo Alto
www.avenuinsights.com (800) 800-8181 Page 9
California Avenue % CHANGE QoQ 2023Q3 QE 2022Q3 QE 23Q3 % OF TOTAL 22Q3 % OF TOTAL
FOOD PRODUCTS 12.2%96,166 85,732 58.8%53.8%
GENERAL RETAIL -14.9%26,767 31,459 16.4%19.7%
ALL OTHER -3.9%40,657 42,294 24.9%26.5%
TOTAL 2.6%163,590 159,485 100.0%100.0%
El Camino Real and Midtown % CHANGE QoQ 2023Q3 QE 2022Q3 QE 23Q3 % OF TOTAL 22Q3 % OF TOTAL
FOOD PRODUCTS -0.3%156,519 156,984 25.8%27.3%
GENERAL RETAIL -5.5%34,492 36,481 5.7%6.4%
ALL OTHER 9.4%416,432 380,604 68.6%66.3%
TOTAL 5.8%607,443 574,069 100.0%100.0%
Greater Downtown % CHANGE QoQ 2023Q3 QE 2022Q3 QE 23Q3 % OF TOTAL 22Q3 % OF TOTAL
FOOD PRODUCTS 5.5%514,021 487,139 63.6%57.5%
GENERAL RETAIL -18.2%246,806 301,594 30.6%35.6%
BUSINESS TO BUSINESS -21.4%32,847 41,770 4.1%4.9%
CONSTRUCTION -23.9%9,586 12,591 1.2%1.5%
TRANSPORTATION -2.1%3,331 3,402 0.4%0.4%
MISCELLANEOUS 53.4%1,058 690 0.1%0.1%
TOTAL -4.7%807,651 847,186 100.0%100.0%
Stanford Shopping Center % CHANGE QoQ 2023Q3 QE 2022Q3 QE 23Q3 % OF TOTAL 22Q3 % OF TOTAL
GENERAL RETAIL 3.1%1,332,525 1,291,996 76.4%76.4%
FOOD PRODUCTS 0.0%156,813 156,883 9.0%9.3%
ALL OTHER 5.1%255,596 243,153 14.6%14.4%
TOTAL 3.1%1,744,934 1,692,032 100.0%100.0%
City of Palo Alto Geo Areas & Citywide Chart Data: Change from 2022Q3 to 2023Q3 (Economic)
Item 15
Attachment A - 2023 Q3 Sales Tax
Data and Legislative Update
Item 15: Staff Report Pg. 10 Packet Pg. 418 of 428
City of Palo Alto
www.avenuinsights.com (800) 800-8181 Page 10
Town And Country Shopping Center % CHANGE QoQ 2023Q3 QE 2022Q3 QE 23Q3 % OF TOTAL 22Q3 % OF TOTAL
FOOD PRODUCTS -1.5%110,125 111,844 61.4%62.2%
GENERAL RETAIL 2.3%66,420 64,948 37.0%36.1%
ALL OTHER -8.5%2,892 3,161 1.6%1.8%
TOTAL -0.3%179,437 179,953 100.0%100.0%
All Other Geos combined with Balance of Jurisdiction % CHANGE QoQ 2023Q3 QE 2022Q3 QE 23Q3 % OF TOTAL 22Q3 % OF TOTAL
BUSINESS TO BUSINESS 29.2%2,660,006 2,058,913 36.6%32.3%
GENERAL RETAIL -1.0%1,781,083 1,799,951 24.5%28.3%
TRANSPORTATION 21.8%1,629,334 1,338,217 22.4%21.0%
FOOD PRODUCTS 4.2%1,114,697 1,069,613 15.4%16.8%
MISCELLANEOUS -4.8%45,461 47,759 0.6%0.7%
CONSTRUCTION -49.7%27,610 54,920 0.4%0.9%
TOTAL 14.0%7,258,191 6,369,373 100.0%100.0%
All Geo Area Totals Comparison 23Q3 & 22Q3 % CHANGE QoQ 2023Q3 QE 2022Q3 QE 23Q3 % OF TOTAL 22Q3 % OF TOTAL
Balance of Jurisdiction 28.7%3,755,136 2,916,649 51.7%45.8%
Stanford Shopping Center 3.1%1,744,934 1,692,032 24.0%26.6%
Greater Downtown -4.7%807,651 847,186 11.1%13.3%
El Camino Real and Midtown 5.8%607,443 574,069 8.4%9.0%
Town And Country Shopping Center -0.3%179,437 179,953 2.5%2.8%
California Avenue 2.6%163,590 159,485 2.3%2.5%
TOTAL 14.0%7,258,191 6,369,373 100.0%100.0%
Palo Alto citywide QE 23Q3 & 22Q3 % CHANGE QoQ 2023Q3 QE 2022Q3 QE 23Q3 % OF TOTAL 22Q3 % OF TOTAL
BUSINESS TO BUSINESS 29.7%2,854,009 2,200,581 36.4%32.0%
GENERAL RETAIL -1.3%1,834,297 1,857,838 23.4%27.0%
TRANSPORTATION 21.7%1,632,961 1,342,342 20.8%19.5%
FOOD PRODUCTS 3.1%1,277,173 1,239,211 16.3%18.0%
MISCELLANEOUS 18.0%205,832 174,396 2.6%2.5%
CONSTRUCTION -45.6%36,519 67,091 0.5%1.0%
TOTAL 13.9%7,840,790 6,881,458 100.0%100.0%
City of Palo Alto Geo Areas & Citywide Chart Data: Change from 2022Q3 to 2023Q3 (Economic) Cont.
Item 15
Attachment A - 2023 Q3 Sales Tax
Data and Legislative Update
Item 15: Staff Report Pg. 11 Packet Pg. 419 of 428
City of Palo Alto
www.avenuinsights.com (800) 800-8181 Page 11
FOOD PRODUCTS,
12.2% CHANGE, $96,166 ,
58.8% TOTAL
GENERAL RETAIL, -14.9%
CHANGE, $26,767 ,
16.4% TOTAL
ALL OTHER,
-3.9% CHANGE, $40,657 ,
24.9% TOTAL
California Avenue 2023Q3 SALES TAX AMOUNTS
FOOD PRODUCTS, $85,732 ,
53.8%TOTAL
GENERAL RETAIL,
$31,459 , 19.7%TOTAL
ALL OTHER, $42,294 ,
26.5%TOTAL
California Avenue 2022Q3 SALES TAX AMOUNTS
FOOD PRODUCTS,
-0.3%CHANGE, $156,519 ,
25.8%TOTAL
GENERAL RETAIL,
-5.5% CHANGE,
$34,492 , 5.7%TOTAL
ALL OTHER,
9.4% CHANGE,
$416,432 ,
68.6%TOTAL
El Camino Real and Midtown 2023Q3 SALES TAX AMOUNTS
FOOD PRODUCTS, $156,984 ,
27.3%TOTAL
GENERAL RETAIL,
$36,481, 6.4%TOTAL
ALL OTHER, $380,604
66.3%TOTAL
El Camino Real and Midtown 2022Q3 SALES TAX AMOUNTS
City of Palo Alto Geo Area Pie Charts
Item 15
Attachment A - 2023 Q3 Sales Tax
Data and Legislative Update
Item 15: Staff Report Pg. 12 Packet Pg. 420 of 428
City of Palo Alto
www.avenuinsights.com (800) 800-8181 Page 12
FOOD PRODUCTS,
5.5%CHANGE, $514,021 ,
63.6%TOTAL
GENERAL RETAIL,
-18.2% CHANGE,
$246,806 ,
30.6%TOTAL
BUSINESS TO BUSINESS,
-21.4% CHANGE, $32,847 ,
4.1%TOTAL
CONSTRUCTION,
-23.9% CHANGE, $9,586 ,
1.2%TOTAL
TRANSPORTATION,
-2.1% CHANGE, $3,331 ,
0.4%TOTAL MISCELLANEOUS,
53.4% CHANGE, $1,058 ,
0.1%TOTAL
Greater Downtown 2023Q3 SALES TAX AMOUNTS
FOOD PRODUCTS,
$487,139 , 57.5%TOTAL
GENERAL RETAIL,
$301,594 , 35.6%TOTAL
BUSINESS TO BUSINESS,
$41,770 , 4.9%TOTAL
CONSTRUCTION, $12,591 ,
1.5%TOTAL
TRANSPORTATION, $3,402 ,
0.4%TOTAL MISCELLANEOUS, $690 ,
0.1%TOTAL
Greater Downtown 2022Q3 SALES TAX AMOUNTS
GENERAL RETAIL
$1,291,996 ,
76.4%TOTAL
FOOD PRODUCTS, $156,883 ,
9.3%TOTAL
ALL OTHER, $243,153 ,
14.4%TOTAL
Stanford Shopping Center 2022Q3 SALES TAX AMOUNTS
GENERAL RETAIL,
3.2% CHANGE, $1,332,525 ,
76.4%TOTAL
FOOD PRODUCTS,
0.0% CHANGE,
$156,813 ,
9.0%TOTAL
ALL OTHER, 5.1% CHANGE,
$255,596 , 14.6%TOTAL
Stanford Shopping Center 2023Q3 SALES TAX AMOUNTS
City of Palo Alto Geo Areas Pie Charts
Item 15
Attachment A - 2023 Q3 Sales Tax
Data and Legislative Update
Item 15: Staff Report Pg. 13 Packet Pg. 421 of 428
City of Palo Alto
www.avenuinsights.com (800) 800-8181 Page 13
FOOD PRODUCTS,
-1.5%CHANGE, $110,125 ,
61.4%TOTALGENERAL RETAIL,
3.1% CHANGE, $66,420 ,
37.0%TOTAL
ALL OTHER, 5.1% CHANGE, $2,892 , 1.6%TOTAL
Town And Country Shopping Center 2023Q3 SALES TAX AMOUNTS
FOOD PRODUCTS,
$111,844 ,
62.2%TOTAL
GENERAL RETAIL, $64,948 ,
36.1%TOTAL
ALL OTHER, $3,161 , 1.8%TOTAL
Town And Country Shopping Center 2022Q3 SALES TAX AMOUNTS
BUSINESS TO BUSINESS,
29.2%CHANGE,
$2,660,006 ,
36.6%TOTAL
GENERAL RETAIL,
-1.0% CHANGE, $1,781,083,
24.5% TOTAL
TRANSPORTATION,
21.8% CHANGE,
$1,629,334,
22.4% TOTAL
FOOD PRODUCTS,
4.2% CHANGE, $1,114,697 ,
15.4%TOTAL
MISCELLANEOUS, -4.8% CHANGE,
$45,461 , 0.6%TOTAL
CONSTRUCTION,
-49.7% CHANGE, $27,610 ,
0.4%TOTAL
All Other Geos combined with Balance of Jurisdiction 2023Q3
SALES TAX AMOUNTS
BUSINESS TO BUSINESS,
$2,058,913 ,
32.3%TOTAL
GENERAL RETAIL, $1,799,951,
28.3% TOTAL
TRANSPORTATION,
$1,338,217
21.0% TOTAL
FOOD PRODUCTS,
$1,069,613 ,
16.8%TOTAL
MISCELLANEOUS,
$47,759 , 0.7%TOTAL
CONSTRUCTION,
$54,920 , 0.9%TOTAL
All Other Geos combined with Balance of Jurisdiction 2022Q3
SALES TAX AMOUNTS
City of Palo Alto Geo Area Pie Charts
Item 15
Attachment A - 2023 Q3 Sales Tax
Data and Legislative Update
Item 15: Staff Report Pg. 14 Packet Pg. 422 of 428
City of Palo Alto
www.avenuinsights.com (800) 800-8181 Page 14
Balance of Jurisdiction,
28.7%CHANGE,
$3,755,136 ,
51.7%TOTAL
Stanford Shopping Center,
3.1% CHANGE, $1,744,934 ,
24.0%TOTAL
Greater Downtown,
-4.7% CHANGE, $807,651 ,
11.1%TOTAL
El Camino Real and Midtown,
5.8% CHANGE, $607,443 ,
8.4%TOTAL
Town And Country Shopping Center,
-0.3% CHANGE, $179,437 , 2.5%TOTAL
California Avenue, 2.6% CHANGE,
$163,590 , 2.3%TOTAL
All Geo Area Totals 2023Q3 SALES TAX AMOUNTS
Balance of Jurisdiction,
$2,916,649 , 45.8%TOTAL
Stanford Shopping
Center, $1,692,032 ,
26.6%TOTAL
Greater Downtown,
$847,186 , 13.3%TOTAL
El Camino Real and Midtown,
$574,069 , 9.0%TOTAL
Town And Country Shopping Center,
$179,953 , 2.8%TOTAL
California Avenue,
$159,485 , 2.5%TOTAL
All Geo Area Totals 2022Q3 SALES TAX AMOUNTS
BUSINESS TO BUSINESS,
29.7%CHANGE, $2,854,009 ,
36.4%TOTAL
GENERAL RETAIL,
-1.3% CHANGE, $1,834,297 ,
23.4%TOTAL
TRANSPORTATION,
21.7% CHANGE,
$1,632,961 ,
20.8%TOTAL
FOOD PRODUCTS,
3.1% CHANGE, $1,277,173 ,
16.3%TOTAL
MISCELLANEOUS, 18.0% CHANGE,
$205,832 , 2.6%TOTAL
CONSTRUCTION,
-45.6% CHANGE, $36,519 ,
0.5%TOTAL
Palo Alto citywide 2023Q3 SALES TAX AMOUNTS
BUSINESS TO BUSINESS,
$2,200,581 , 32.0%TOTAL
GENERAL RETAIL,
$1,857,838 ,
27.0%TOTAL
TRANSPORTATION,
$1,342,342 ,
19.5%TOTAL
FOOD PRODUCTS, $1,239,211
18.0%TOTAL
MISCELLANEOUS,
$174,396 , 2.5%TOTAL CONSTRUCTION, $67,091 ,
1.0%TOTAL
Palo Alto citywide 2022Q3 SALES TAX AMOUNTS
City of Palo Alto Geo Area & Citywide Pie Charts
Item 15
Attachment A - 2023 Q3 Sales Tax
Data and Legislative Update
Item 15: Staff Report Pg. 15 Packet Pg. 423 of 428
California Legislative
Update December 18,
2023
This edition of our policy update provides information on
the Legislative Analyst’s Office fiscal outlook and
upcoming ballot initiatives with a focus on Proposition 1
and the Taxpayer Protection Act.
We hope that this update is helpful, and we will provide
additional updates in January 2024 covering legislation and
budget activity in Sacramento. Enjoy the holiday season
and please reach out to us with any questions.
Government Relations Contact
Fran.Mancia@avenuinsights.com / 559.288.7296
Legislative Analyst’s Office Fiscal
Outlook
The Legislative Analyst’s Office (LAO) released its fiscal
outlook on December 7, which was delayed this year
because of tax deadline extensions. Most 2022 income
taxes were due November 16, with final state revenue
numbers trickling in at the beginning of this month. The
outlook, as anticipated, is not nearly as positive as numbers
contained in the 2023-24 Budget Act.
Over the three-year outlook period – 2022-23, 2023-24,
and 2024-25, revenues are now estimated to be $58 billion
below projections. The LAO which advises the legislature
on budget issues, believes that the current revenue
weakness is likely to continue based on past similar
downturns such as the dotcom bust (2000-2001) and Great
Recession (2007-2009).
The LAO is estimating that California will be facing a $68
billion deficit in the 2024-25 budget year. Compounding
this news is their projection of a $155 billion structural
deficit across the forecast period 2024-25 through 2027-28:
• ~$68 billion in 2024-25
• ~$31 billion in 2025-26
• ~$29 billion in 2026-27
• ~$27 billion in 2027-28
These projections are subject to substantial uncertainty,
however, assuming the administration is working with
similar estimates, California policymakers will be subject to
some serious number crunching in the next six months.
For the 2023-24 Budget Act, lawmakers were forced to
build a budget based on projections of revenues that
disappointingly did not materialize. For the governor’s
January budget proposal, due on or before January 10,
2024, new investments are not expected. Based on
preliminary numbers, this was anticipated. What
lawmakers haven’t reckoned with in the last several years,
which may now be on the table, is cutting core services to
vulnerable populations.
Budget committee staff and the LAO are anticipating
proposals for spending reductions, revenue increases,
clawbacks of unspent funding, cost shifts, and tapping
reserves. Additionally, it would not be unusual for the
administration to propose a realignment of programs from
the state level to the local level without commensurate
funding.
LAO Advice to the Legislature
It is likely that ongoing spending reductions, revenue
increases, or both will be necessary to balance the budget.
Early budget action in 2024 could increase the legislature’s
flexibility by allowing the state to pull back funding that
has not yet been allocated. Using reserves is merited but is
unlikely to be sufficient to cover the state’s multiyear
deficits. Moreover, preserving some reserves would
provide a helpful cushion in the future.
Reserves: The state’s Budget Stabilization Account
(reserve) has about $23 billion in it. Should the governor
declare a fiscal emergency, which would be possible under
the LAO’s projections in both 2023-24 and 2024-25,
lawmakers could suspend deposits and withdraw the lesser
of the amount of the budget emergency or 50 percent of
the reserve balance (in each year). There is approximately
$1 billion in the Safety Net Reserve which is available to
Item 15
Attachment A - 2023 Q3
Sales Tax Data and
Legislative Update
Item 15: Staff Report Pg. 16 Packet Pg. 424 of 428
2
fund program costs in health and human services
programs which could also be utilized.
One-Time and Temporary Spending: The LAO
estimates the state has $8.6 billion in one-time and
temporary spending slated for 2024-25 that can be reduced
entirely to address the budget problem, including $2.2
billion in transportation, $1.9 billion in natural resources
and environment, and $1.8 billion in various education
programs. There are also potentially billions of dollars
from prior years that have been committed but not yet
distributed.
Cost Shifts: The state used $10 billion in cost shifts in the
2023-24 budget and may have additional capacity to shift
funds again this year.
New Revenue: In 2020-21, the state suspended net
operating loss deductions, preventing corporations with
net income over $1 million from using them. The state
also limited businesses from claiming more than $5 million
in tax credits. Lawmakers could adopt similar provisions in
the upcoming budget year. The state has also increased
broad-based taxes on a temporary and permanent basis in
similar revenue downturns.
Managed Care Organization (MCO) Tax: The state
may have to explore using more of the MCO tax to offset
the General Fund costs of Medi-Cal, rather than for other
costs, such as increasing provider rates.
School Funding: School funding could be a major target
for budget solutions; however, the legislature and
administration have traditionally avoided cuts to K-14 if
possible. According to the LAO’s estimates, spending on
schools and community colleges could be reduced by $21
billion over three budget years based on the minimum
General Fund spending requirement under Prop 98:
• $9.6 billion in 2022-23,
• $7 billion in 2023-24, and
• $4.4 billion in 2024-25.
The automatic reduction in school spending is only $4.3
billion, mostly related to the automatic elimination of
required deposits into the Prop 98 reserve in 2022-23 and
2023-24. To obtain additional savings, the state would
have to reduce spending previously approved in 2022-23
and 2023-24. In previous downturns the state relied upon
across-the-board reductions to per-pupil allocations and
payment deferrals, both of which tend to be disruptive for
school operations. Less disruptive options would be
utilizing Proposition 98 reserve for 2022-23. Should the
state withdraw funding for 2022-23, it would also have to
withdraw the remaining funds - about $450 million in
2023-24.
Additional savings could come in the form of pulling back
$1.1 billion for grants to community schools in 2022-23
that haven’t been awarded, as well as several hundreds of
millions in State Preschool funding provided in 2022-23
and 2023-24 that is not currently obligated.
LAO’s $68 Billion Deficit Calculation
• The state anticipated a deficit of around $14 billion
entering the 2024-25 budget year.
• Revenues are lower than budget act projections by $58
billion.
• School and community college spending is lower by
more than $4 billion.
• Other spending is lower by $4 billion - $3 billion of
this is from health and human services programs.
• Entering fund balance is lower by $3 billion.
Budgetary changes to years before the budget window
are reflected in the 2022‑23 entering fund balance.
• Reserve deposits are higher by $400 million -
Proposition 2 requires the state to set aside minimum
amounts to deposit into its reserve, pay down debts,
and under certain conditions spend money on
infrastructure. Typically, the set asides increase when
revenues increase and drop when revenues decrease.
This year, however, the state’s reserve requirements
would increase in response to the LAO’s revenue
forecast.
The LAO’s analysis is based on the data below as well as
other factors, and it will continue to adjust its estimates as
additional information emerges:
• The federal reserve has made borrowing more
expensive and reduced money available for
investments slowing economic activity.
• Home sales are down by about half. On average,
monthly mortgage payments have increased from
$3,500 to $5,400.
• Investment in California startups and technology,
which is especially sensitive to financial conditions, has
dropped significantly.
• The number of companies that went public in 2022
and 2023 is down over 80% from 2021.
Item 15
Attachment A - 2023 Q3
Sales Tax Data and
Legislative Update
Item 15: Staff Report Pg. 17 Packet Pg. 425 of 428
3
• The number of unemployed workers has risen almost
200,000 since last summer, with the unemployment
rate rising from 3.8% to 4.8%.
• Inflation adjusted incomes posted five straight
quarters of year-over-year declines from the first
quarter of 2022 to the first quarter of 2023.
• Income taxes collected directly from workers’
paychecks is down 2% as compared to last year, sales
tax collections are flat, and total income tax collections
are down 25% in 2022-23.
• The LAO is projecting that revenues will be nearly flat
in 2023-24 after falling 20% in 2022-23. Revenue
growth is expected to return in 2024-25 and beyond.
The governor’s January budget proposal will contain the
administration’s projections. The administration’s forecast
along with the LAO’s will give legislators a sense of how
much spending they'll need to cut, delay, or shift to bonds
over the coming budget cycle.
On December 12, the Department of Finance issued a
budget letter directing state entities under the governor’s
control to take immediate actions to reduce current-year
General Fund expenditures. Examples of savings cited
include limiting new goods and services contracts,
reducing information technology costs, limiting vehicle
replacements, limiting office supply purchases, reducing
non-essential travel, cancelling some leave buy-back
programs, and deferring funding requests. The letter
authorizes agency secretaries and cabinet-level directors to
make exemptions only in limited instances: to address a
declared emergency, to provide 24-hour medical care, to
avoid significant revenue losses, or to achieve significant
net cost savings.
We will update you on the state’s budget picture in
January, after the governor presents his 2024-25 budget
proposal.
March 2024 Ballot
Appearing on the March 5, 2024 ballot for voters’
consideration will be Proposition 1. Proposition 1, which
Governor Gavin Newsom has dubbed, Treatment not
Tents, is a combination of elements from SB 326, Chapter
790, Statutes of 2023 and AB 531, Chapter 789, Statutes of
2023.
Assuming passage, Proposition 1 will reform the Mental
Health Services Act (Proposition 63, 2004) and includes
$6.38 billion in bonds to finance grants for the acquisition
of capital assets for, and the construction and
rehabilitation of, unlocked, voluntary, and community-
based treatment settings and residential care settings and to
house veterans and others who are experiencing
homelessness or are at risk of homelessness and are living
with a behavioral health challenge.
Proposition 1 will shift the focus of the Mental Health
Services Act (MHSA), which will be renamed the
Behavioral Health Services Act, by directing funding
toward housing and personalized support services, but
away from other mental health services currently utilizing
the funding. Proposition 1 will also shift approximately
$140 million in MHSA funding annually from counties to
the state.
$4.4 billion in bond funding will be allocated by the state
to build more places for mental health care and drug or
alcohol treatment. The other $2 billion will be granted by
the state to local governments to turn hotels, motels, and
other buildings into housing and construct new housing.
Housing will be for people who are experiencing
homelessness or are at risk of becoming homeless and
have mental health, drug, or alcohol challenges. Just over
half of the $2 billion will be set aside for veterans.
The state is estimating that the bond will build places for
6,800 people to receive mental health care and drug or
alcohol treatment, and provide up to 4,350 housing units,
with 2,350 set aside for veterans. Costs for the bond are
estimated to be $310 million annually for 30 years.
Taxpayer Protection Act
The California Supreme Court has agreed to determine
whether The Taxpayer Protection and Government
Accountability Act (Taxpayer Protection Act) should
appear on the November 2024 ballot. The initiative would
limit the ability for state and local governments to impose
taxes, fees, and other charges, applying the changes
retroactively to January 1, 2022, and giving voters 12
months to approve or reject tax increases imposed during
that time.
It would also limit the ability of a local government to
place an advisory measure on the ballot if the measure is
related to the potential use of revenues derived from a
general tax that is appearing on the same ballot. It is
sponsored by the California Business Roundtable (CBRT).
The initiative has been challenged by Governor Gavin
Newsom, legislative leadership, and several local
governments, arguing that it violates the California
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constitution by infringing on lawmakers’ constitutional
powers to impose state taxes. Additionally, they argue it
would illegally shift power from the governor to
lawmakers by requiring charges now considered fees to be
approved as taxes by the legislature, and that it
impermissibly seeks to restructure California’s system of
government in a way that impedes the state’s ability to
respond to future crises and cannot lawfully be enacted
through the initiative process.
On November 29, the court ordered California Secretary
of State Shirley Weber and the ballot measure’s counsel to
make their case for why the challenge should not proceed.
The Supreme Court gave the respondents until December
27 to file their response, and the petitioners’ filing is due
January 31.
In addition to the lawsuit, the legislature passed ACA 13
this year, which will appear on the same ballot as the
Taxpayer Protection Act. Upon voter approval, ACA 13
requires any state or local initiative measure to conform
with any increased voter threshold that it seeks to impose
on future ballot measures. If ACA 13 passes, it will require
that the Taxpayer Protection Act pass by a 2/3 vote of the
electorate. ACA 13 also preserves the right of local
governments to place advisory questions on the ballot to
ask voters their opinion on the issue, and states that the
provisions of this constitutional amendment apply to all
statewide initiative measures submitted to voters on or
after Jan. 1, 2024.
Proponents have raised $17.25 million in support of the
Taxpayer Protection Act. It received a fiscal analysis from
the Department of Finance and Legislative Analyst’s
Office last year, as well as an official title and summary
from the Attorney General’s Office. The official title of
the measure is: Limits Ability of Voters and State and
Local Governments to Raise Revenues for Government
Services.
As a review, below is an outline of the initiative’s
provisions.
State
• Define every levy, charge, or exaction of any kind
imposed by state law, a tax or an exempt charge.
• An exempt charge would include:
o A charge for a specific government service or
product provided directly to a payor receiving the
product or service which does not exceed actual
costs to the State of providing the service or
product.
o A charge for issuing licenses and permits,
performing investigations, inspections, and audits,
enforcing agricultural marketing orders, and the
administrative enforcement and adjudication
thereof.
o A levy, charge, or exaction collected from local
governments, health care providers, or health
plans primarily used to finance the non-federal
portion of the Medi-Cal program.
o A reasonable charge to enter, use, purchase, rent,
or lease state property.
o A fine or penalty imposed by the judicial branch.
o A levy, charge, assessment, or exaction collected
for the promotion of California tourism.
• Any change in state law resulting in a new or higher
tax must be passed by a ⅔ vote of the Legislature, be
submitted to the electorate, and approved by a
majority vote of the electorate. Details provided to
voters regarding the change in taxes must include the
duration a tax will be imposed, an estimate of annual
revenue, and how the revenue will be used.
• The title and summary for a measure providing for the
imposition of a tax must include the type and amount
or rate of the tax, the duration of the tax, and the use
of revenue derived from the tax.
• Any change in state law resulting in any taxpayer
paying a new or higher exempt charge must be passed
by both houses of the Legislature, specify the type of
exempt charge, and the amount or rate of the exempt
charge.
• Any tax or exempt charge adopted after January 1,
2022, that is not in compliance with the initiative
would be void 12 months after the effective date of
the initiative.
• The State must provide clear and convincing evidence
that a levy, charge, or other exaction is an exempt
charge and not a tax, and that the amount is
reasonable and does not exceed actual costs.
Local Governments
• Define every levy, charge, or exaction of any kind
imposed by local law, a tax or an exempt charge.
• An exempt charge would include:
o A charge for a specific government service or
product provided directly to a payor receiving the
product or service which does not exceed actual
costs to the local government of providing the
service or product.
o A charge for issuing licenses and permits,
performing investigations, inspections, and audits,
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enforcing agricultural marketing orders, and the
administrative enforcement and adjudication
thereof.
o A reasonable charge to enter, use, purchase, rent,
or lease local government property.
o A fine or penalty imposed by the judicial branch
or local government administrative enforcement
agency to punish a violation of the law.
o A charge imposed as a condition of property
development that is not related to vehicle miles
traveled.
o An assessment, fee, or charge subject to Article
XIII D of the constitution, or an assessment
imposed upon a business in a tourism marketing
district, a parking and business improvement area,
or a property and business improvement district.
o A charge imposed for a specific health care service
not exceeding reasonable costs to the local
government of providing the service.
• No local law proposed by the governing body, or an
electorate may impose, extend, or increase any general
tax unless the tax is submitted to the electorate and
approved by a majority vote.
• No local law proposed by the governing body or an
elector, may impose, extend, or increase any special tax
unless the tax is submitted to the electorate and
approved by a 2/3 vote.
• The title and summary for a measure providing for the
imposition of a tax shall include the type and amount
or rate of the tax, the duration of the tax, and the use
of revenue derived from the tax.
• For a general tax, the phrase, “for general government
use” shall be required and no advisory measure may
appear on the same ballot that would indicate that the
tax will or could be used for a specific purpose.
• No amendment to a county charter which provides for
the imposition, extension, or increase of a tax or
exempt charge shall be submitted to or approved by
the electors.
• Any tax or exempt charge adopted after January 1,
2022, that is not in compliance with the initiative
would be void 12 months after the effective date of
the initiative.
• The local jurisdiction must provide clear and
convincing evidence that a levy, charge, or other
exaction is an exempt charge and not a tax, and that
the amount is reasonable and does not exceed actual
costs.
The LAO/Department of Finance analysis of the measure
points out the following:
• More than 90% of the state budget is funded with
revenues from taxes. Much of the rest is funded by
fees and other charges.
• Current law requires approval by ⅔ of each house of
the Legislature or a majority vote of the statewide
electorate. This measure would require both.
• The measure expands the definition of a tax to include
some charges state and local governments currently
treat as fees and other charges.
• The initiative would make it harder for the Legislature
and local governments to raise revenues, likely
resulting in lower annual state and local revenues
depending on future actions of the Legislature, local
governing bodies, voters, and the courts.
Item 15
Attachment A - 2023 Q3
Sales Tax Data and
Legislative Update
Item 15: Staff Report Pg. 20 Packet Pg. 428 of 428