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HomeMy WebLinkAbout2024-02-26 City Council Agenda PacketCITY COUNCIL Regular Meeting Monday, February 26, 2024 Council Chambers & Hybrid 5:30 PM 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. Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that: (1) sticks, posts, poles or similar/other type of handle objects are strictly prohibited; (2) the items do not create a facility, fire, or safety hazard; and (3) persons with such items remain seated when displaying them and must not raise the items above shoulder level, obstruct the view or passage of other attendees, or otherwise disturb the business of the meeting. 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 ‐ 6:30 PM) 1.CONFERENCE WITH CITY ATTORNEY‐ EXISTING LITIGATION Subject: Reinert v. City of Palo Alto Santa Clara County Superior Court Case No. 21‐CV‐391286 (One Case, as Defendant) Authority: Government Code Section 54956.9(d)(1) AGENDA CHANGES, ADDITIONS AND DELETIONS PUBLIC COMMENT (6:30 ‐ 6:45 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 (6:45 ‐ 6:50 PM) Members of the public may not speak to the item(s). CONSENT CALENDAR (6:50 ‐ 6:55 PM) Items will be voted in one motion unless removed from the calendar by three Council Members. 2.Approval of Minutes from February 5, 2024 and February 12, 2024 meetings. 3.Appointment of 2024 Emergency Standby Council 4.City Councilmember Appointment to the Santa Clara County Housing and Community Development Advisory Committee (HCDAC) 5.Adopt a Resolution Authorizing the City Manager or Their Designee to Execute a Third Phase Agreement with Northern California Power Agency for the Purchase of up to 2,800 Megawatt‐Hours per Year of Biogas Energy from Zero Waste Energy Development Company, LLC over a Term of up to 10 Years for a Total Not to Exceed Amount of $5.7 Million; CEQA Status: Not a Project under CEQA Guidelines Section 15378(b)(5) 6.Approval of Amendment No. 6 to Contract No. C16163034A with Nova Partners, Inc. to Add $766,919, Increasing the Not to Exceed Amount to $9,647,825, for Additional Construction Management Services for the New Public Safety Building Capital Improvement Program Project (PE‐ 15001) and Extend the Contract Term; and Approval of Amendment No. 2 to Contract No. S20177452 with Schaaf & Wheeler Consulting Civil Engineers to Add $9,600, Increasing the Not to Exceed Amount to $20,200, for Additional Professional Services and Extend the Contract Term for the New Public Safety Building Capital Improvement Program project (PE‐ 15001); CEQA: Environmental Impact Report for the New Public Safety Building and New California Avenue Area Parking Garage (Resolution No. 9772) 7.Approval of Amendment No. 1 to Professional Services Agreement S21180224 with Matrix Consulting Group for a Planning and Development Services Fee Study in the Amount of $56,500 for a total Not to Exceed of $138,000 and Extension of the Contract Term through January 31, 2026. Environmental Assessment: Exempt in Accordance with CEQA Guidelines Section 15061(3)(b). 8.Approve and Authorize the City Manager to Execute a Funding Agreement with the Valley Transportation Authority (VTA) to Accept a $250,000 Grant as part of the 2010 Measure B Vehicle Registration Fee (VRF) Countywide Program Cycle Four; CEQA status – Statutorily Exempt. 9.Approve Two Contracts for Consultant Services for the Downtown Housing Plan: Contract Number C24187236 with Wallace Roberts & Todd, LLC (WRT) for a Not‐to Exceed Amount of $1,508,254 to Provide Planning and Consulting Services to Develop the City’s Downtown Housing Plan for a Term of Two‐years with an Optional One‐year Extension; and Contract Number C24187237 with Good City Company (Good City) for a Not‐to Exceed Amount of $375,522 to Provide Project Management and Consulting Services for the City’s Downtown Housing Plan for a Term of Two‐years with an Optional One‐year Extension. CEQA Action: Agreements are not subject to CEQA 10.Approval of Professional Services Contract with Ecology Action for a Not‐to‐Exceed Amount of $139,968 for City of Palo Alto Safe Routes to School Spring/Fall Programming; CEQA status – categorically exempt (educational program). 11.SECOND READING: Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 (Street, Trees, Shrubs, and Plants) and Chapter 8.10 (Tree Preservation and Management Regulations) (FIRST READING: January 16, 2024 PASSED 5‐2, Lythcott‐ Haims, Tanaka no) 12.Approval of the Appointment of Lauren Lai as the Administrative Services Director/ Chief Financial Officer CITY MANAGER COMMENTS (6:55 ‐ 7:10 PM) BREAK (5‐10 MINUTES) ACTION ITEMS (Item 13: 7:20 ‐ 7:35 PM, Item 14: 7:35 ‐ 9:05 PM, Item 15: 9:05 ‐ 10:05 PM, Item 16: 10:05 ‐ 10:35 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters. 13.PUBLIC HEARING: Objections to Weed Abatement at Affected Properties and Approval of Affected Property List for Commencing Weed Abatement in 2024; CEQA status – exempt 14.Adoption of a Resolution Suspending Enforcement of Municipal Code Sections 16.14.090, 16.14.110 and 16.14.300 Requiring All‐electric Construction and Direction to Staff to Commence Work on Local Amendments to the California Energy Code Establishing a One Margin Standard. CEQA Status – Not a Project. 15.Policy and Services Committee Recommendations for Changes to the City Council Procedures and Protocols Handbook based on Prior City Council Referrals (Review of Censure Language). CEQA Status ‐ Not a Project. 16.Discussion on the 2024 Boards and Commissions Recruitment. CEQA Status ‐ Not a Project. ADJOURNMENT OTHER INFORMATION Standing Committee Meetings this week Public Comment Letters Schedule of Meetings 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 26, 2024 Materials submitted after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. CITY COUNCILRegular MeetingMonday, February 26, 2024Council Chambers & Hybrid5:30 PMPalo 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.Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that: (1) sticks,posts, poles or similar/other type of handle objects are strictly prohibited; (2) the items do notcreate a facility, fire, or safety hazard; and (3) persons with such items remain seated whendisplaying them and must not raise the items above shoulder level, obstruct the view orpassage of other attendees, or otherwise disturb the business of the meeting.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 ‐ 6:30 PM) 1.CONFERENCE WITH CITY ATTORNEY‐ EXISTING LITIGATION Subject: Reinert v. City of Palo Alto Santa Clara County Superior Court Case No. 21‐CV‐391286 (One Case, as Defendant) Authority: Government Code Section 54956.9(d)(1) AGENDA CHANGES, ADDITIONS AND DELETIONS PUBLIC COMMENT (6:30 ‐ 6:45 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 (6:45 ‐ 6:50 PM) Members of the public may not speak to the item(s). CONSENT CALENDAR (6:50 ‐ 6:55 PM) Items will be voted in one motion unless removed from the calendar by three Council Members. 2.Approval of Minutes from February 5, 2024 and February 12, 2024 meetings. 3.Appointment of 2024 Emergency Standby Council 4.City Councilmember Appointment to the Santa Clara County Housing and Community Development Advisory Committee (HCDAC) 5.Adopt a Resolution Authorizing the City Manager or Their Designee to Execute a Third Phase Agreement with Northern California Power Agency for the Purchase of up to 2,800 Megawatt‐Hours per Year of Biogas Energy from Zero Waste Energy Development Company, LLC over a Term of up to 10 Years for a Total Not to Exceed Amount of $5.7 Million; CEQA Status: Not a Project under CEQA Guidelines Section 15378(b)(5) 6.Approval of Amendment No. 6 to Contract No. C16163034A with Nova Partners, Inc. to Add $766,919, Increasing the Not to Exceed Amount to $9,647,825, for Additional Construction Management Services for the New Public Safety Building Capital Improvement Program Project (PE‐ 15001) and Extend the Contract Term; and Approval of Amendment No. 2 to Contract No. S20177452 with Schaaf & Wheeler Consulting Civil Engineers to Add $9,600, Increasing the Not to Exceed Amount to $20,200, for Additional Professional Services and Extend the Contract Term for the New Public Safety Building Capital Improvement Program project (PE‐ 15001); CEQA: Environmental Impact Report for the New Public Safety Building and New California Avenue Area Parking Garage (Resolution No. 9772) 7.Approval of Amendment No. 1 to Professional Services Agreement S21180224 with Matrix Consulting Group for a Planning and Development Services Fee Study in the Amount of $56,500 for a total Not to Exceed of $138,000 and Extension of the Contract Term through January 31, 2026. Environmental Assessment: Exempt in Accordance with CEQA Guidelines Section 15061(3)(b). 8.Approve and Authorize the City Manager to Execute a Funding Agreement with the Valley Transportation Authority (VTA) to Accept a $250,000 Grant as part of the 2010 Measure B Vehicle Registration Fee (VRF) Countywide Program Cycle Four; CEQA status – Statutorily Exempt. 9.Approve Two Contracts for Consultant Services for the Downtown Housing Plan: Contract Number C24187236 with Wallace Roberts & Todd, LLC (WRT) for a Not‐to Exceed Amount of $1,508,254 to Provide Planning and Consulting Services to Develop the City’s Downtown Housing Plan for a Term of Two‐years with an Optional One‐year Extension; and Contract Number C24187237 with Good City Company (Good City) for a Not‐to Exceed Amount of $375,522 to Provide Project Management and Consulting Services for the City’s Downtown Housing Plan for a Term of Two‐years with an Optional One‐year Extension. CEQA Action: Agreements are not subject to CEQA 10.Approval of Professional Services Contract with Ecology Action for a Not‐to‐Exceed Amount of $139,968 for City of Palo Alto Safe Routes to School Spring/Fall Programming; CEQA status – categorically exempt (educational program). 11.SECOND READING: Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 (Street, Trees, Shrubs, and Plants) and Chapter 8.10 (Tree Preservation and Management Regulations) (FIRST READING: January 16, 2024 PASSED 5‐2, Lythcott‐ Haims, Tanaka no) 12.Approval of the Appointment of Lauren Lai as the Administrative Services Director/ Chief Financial Officer CITY MANAGER COMMENTS (6:55 ‐ 7:10 PM) BREAK (5‐10 MINUTES) ACTION ITEMS (Item 13: 7:20 ‐ 7:35 PM, Item 14: 7:35 ‐ 9:05 PM, Item 15: 9:05 ‐ 10:05 PM, Item 16: 10:05 ‐ 10:35 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters. 13.PUBLIC HEARING: Objections to Weed Abatement at Affected Properties and Approval of Affected Property List for Commencing Weed Abatement in 2024; CEQA status – exempt 14.Adoption of a Resolution Suspending Enforcement of Municipal Code Sections 16.14.090, 16.14.110 and 16.14.300 Requiring All‐electric Construction and Direction to Staff to Commence Work on Local Amendments to the California Energy Code Establishing a One Margin Standard. CEQA Status – Not a Project. 15.Policy and Services Committee Recommendations for Changes to the City Council Procedures and Protocols Handbook based on Prior City Council Referrals (Review of Censure Language). CEQA Status ‐ Not a Project. 16.Discussion on the 2024 Boards and Commissions Recruitment. CEQA Status ‐ Not a Project. ADJOURNMENT OTHER INFORMATION Standing Committee Meetings this week Public Comment Letters Schedule of Meetings 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 26, 2024 Materials submitted after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. CITY COUNCILRegular MeetingMonday, February 26, 2024Council Chambers & Hybrid5:30 PMPalo 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.Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that: (1) sticks,posts, poles or similar/other type of handle objects are strictly prohibited; (2) the items do notcreate a facility, fire, or safety hazard; and (3) persons with such items remain seated whendisplaying them and must not raise the items above shoulder level, obstruct the view orpassage of other attendees, or otherwise disturb the business of the meeting.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 ‐ 6:30 PM)1.CONFERENCE WITH CITY ATTORNEY‐ EXISTING LITIGATION Subject: Reinert v. City ofPalo Alto Santa Clara County Superior Court Case No. 21‐CV‐391286 (One Case, asDefendant) Authority: Government Code Section 54956.9(d)(1)AGENDA CHANGES, ADDITIONS AND DELETIONSPUBLIC COMMENT (6:30 ‐ 6:45 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 (6:45 ‐ 6:50 PM)Members of the public may not speak to the item(s).CONSENT CALENDAR (6:50 ‐ 6:55 PM)Items will be voted in one motion unless removed from the calendar by three Council Members.2.Approval of Minutes from February 5, 2024 and February 12, 2024 meetings.3.Appointment of 2024 Emergency Standby Council4.City Councilmember Appointment to the Santa Clara County Housing and CommunityDevelopment Advisory Committee (HCDAC)5.Adopt a Resolution Authorizing the City Manager or Their Designee to Execute a ThirdPhase Agreement with Northern California Power Agency for the Purchase of up to 2,800Megawatt‐Hours per Year of Biogas Energy from Zero Waste Energy DevelopmentCompany, LLC over a Term of up to 10 Years for a Total Not to Exceed Amount of $5.7Million; CEQA Status: Not a Project under CEQA Guidelines Section 15378(b)(5)6.Approval of Amendment No. 6 to Contract No. C16163034A with Nova Partners, Inc. toAdd $766,919, Increasing the Not to Exceed Amount to $9,647,825, for AdditionalConstruction Management Services for the New Public Safety Building CapitalImprovement Program Project (PE‐ 15001) and Extend the Contract Term; and Approval ofAmendment No. 2 to Contract No. S20177452 with Schaaf & Wheeler Consulting Civil Engineers to Add $9,600, Increasing the Not to Exceed Amount to $20,200, for Additional Professional Services and Extend the Contract Term for the New Public Safety Building Capital Improvement Program project (PE‐ 15001); CEQA: Environmental Impact Report for the New Public Safety Building and New California Avenue Area Parking Garage (Resolution No. 9772) 7.Approval of Amendment No. 1 to Professional Services Agreement S21180224 with Matrix Consulting Group for a Planning and Development Services Fee Study in the Amount of $56,500 for a total Not to Exceed of $138,000 and Extension of the Contract Term through January 31, 2026. Environmental Assessment: Exempt in Accordance with CEQA Guidelines Section 15061(3)(b). 8.Approve and Authorize the City Manager to Execute a Funding Agreement with the Valley Transportation Authority (VTA) to Accept a $250,000 Grant as part of the 2010 Measure B Vehicle Registration Fee (VRF) Countywide Program Cycle Four; CEQA status – Statutorily Exempt. 9.Approve Two Contracts for Consultant Services for the Downtown Housing Plan: Contract Number C24187236 with Wallace Roberts & Todd, LLC (WRT) for a Not‐to Exceed Amount of $1,508,254 to Provide Planning and Consulting Services to Develop the City’s Downtown Housing Plan for a Term of Two‐years with an Optional One‐year Extension; and Contract Number C24187237 with Good City Company (Good City) for a Not‐to Exceed Amount of $375,522 to Provide Project Management and Consulting Services for the City’s Downtown Housing Plan for a Term of Two‐years with an Optional One‐year Extension. CEQA Action: Agreements are not subject to CEQA 10.Approval of Professional Services Contract with Ecology Action for a Not‐to‐Exceed Amount of $139,968 for City of Palo Alto Safe Routes to School Spring/Fall Programming; CEQA status – categorically exempt (educational program). 11.SECOND READING: Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 (Street, Trees, Shrubs, and Plants) and Chapter 8.10 (Tree Preservation and Management Regulations) (FIRST READING: January 16, 2024 PASSED 5‐2, Lythcott‐ Haims, Tanaka no) 12.Approval of the Appointment of Lauren Lai as the Administrative Services Director/ Chief Financial Officer CITY MANAGER COMMENTS (6:55 ‐ 7:10 PM) BREAK (5‐10 MINUTES) ACTION ITEMS (Item 13: 7:20 ‐ 7:35 PM, Item 14: 7:35 ‐ 9:05 PM, Item 15: 9:05 ‐ 10:05 PM, Item 16: 10:05 ‐ 10:35 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters. 13.PUBLIC HEARING: Objections to Weed Abatement at Affected Properties and Approval of Affected Property List for Commencing Weed Abatement in 2024; CEQA status – exempt 14.Adoption of a Resolution Suspending Enforcement of Municipal Code Sections 16.14.090, 16.14.110 and 16.14.300 Requiring All‐electric Construction and Direction to Staff to Commence Work on Local Amendments to the California Energy Code Establishing a One Margin Standard. CEQA Status – Not a Project. 15.Policy and Services Committee Recommendations for Changes to the City Council Procedures and Protocols Handbook based on Prior City Council Referrals (Review of Censure Language). CEQA Status ‐ Not a Project. 16.Discussion on the 2024 Boards and Commissions Recruitment. CEQA Status ‐ Not a Project. ADJOURNMENT OTHER INFORMATION Standing Committee Meetings this week Public Comment Letters Schedule of Meetings 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 26, 2024 Materials submitted after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. CITY COUNCILRegular MeetingMonday, February 26, 2024Council Chambers & Hybrid5:30 PMPalo 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.Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that: (1) sticks,posts, poles or similar/other type of handle objects are strictly prohibited; (2) the items do notcreate a facility, fire, or safety hazard; and (3) persons with such items remain seated whendisplaying them and must not raise the items above shoulder level, obstruct the view orpassage of other attendees, or otherwise disturb the business of the meeting.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 ‐ 6:30 PM)1.CONFERENCE WITH CITY ATTORNEY‐ EXISTING LITIGATION Subject: Reinert v. City ofPalo Alto Santa Clara County Superior Court Case No. 21‐CV‐391286 (One Case, asDefendant) Authority: Government Code Section 54956.9(d)(1)AGENDA CHANGES, ADDITIONS AND DELETIONSPUBLIC COMMENT (6:30 ‐ 6:45 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 (6:45 ‐ 6:50 PM)Members of the public may not speak to the item(s).CONSENT CALENDAR (6:50 ‐ 6:55 PM)Items will be voted in one motion unless removed from the calendar by three Council Members.2.Approval of Minutes from February 5, 2024 and February 12, 2024 meetings.3.Appointment of 2024 Emergency Standby Council4.City Councilmember Appointment to the Santa Clara County Housing and CommunityDevelopment Advisory Committee (HCDAC)5.Adopt a Resolution Authorizing the City Manager or Their Designee to Execute a ThirdPhase Agreement with Northern California Power Agency for the Purchase of up to 2,800Megawatt‐Hours per Year of Biogas Energy from Zero Waste Energy DevelopmentCompany, LLC over a Term of up to 10 Years for a Total Not to Exceed Amount of $5.7Million; CEQA Status: Not a Project under CEQA Guidelines Section 15378(b)(5)6.Approval of Amendment No. 6 to Contract No. C16163034A with Nova Partners, Inc. toAdd $766,919, Increasing the Not to Exceed Amount to $9,647,825, for AdditionalConstruction Management Services for the New Public Safety Building CapitalImprovement Program Project (PE‐ 15001) and Extend the Contract Term; and Approval ofAmendment No. 2 to Contract No. S20177452 with Schaaf & Wheeler Consulting CivilEngineers to Add $9,600, Increasing the Not to Exceed Amount to $20,200, for AdditionalProfessional Services and Extend the Contract Term for the New Public Safety BuildingCapital Improvement Program project (PE‐ 15001); CEQA: Environmental Impact Reportfor the New Public Safety Building and New California Avenue Area Parking Garage(Resolution No. 9772)7.Approval of Amendment No. 1 to Professional Services Agreement S21180224 withMatrix Consulting Group for a Planning and Development Services Fee Study in theAmount of $56,500 for a total Not to Exceed of $138,000 and Extension of the ContractTerm through January 31, 2026. Environmental Assessment: Exempt in Accordance withCEQA Guidelines Section 15061(3)(b).8.Approve and Authorize the City Manager to Execute a Funding Agreement with the ValleyTransportation Authority (VTA) to Accept a $250,000 Grant as part of the 2010 MeasureB Vehicle Registration Fee (VRF) Countywide Program Cycle Four; CEQA status –Statutorily Exempt.9.Approve Two Contracts for Consultant Services for the Downtown Housing Plan: ContractNumber C24187236 with Wallace Roberts & Todd, LLC (WRT) for a Not‐to ExceedAmount of $1,508,254 to Provide Planning and Consulting Services to Develop the City’sDowntown Housing Plan for a Term of Two‐years with an Optional One‐year Extension;and Contract Number C24187237 with Good City Company (Good City) for a Not‐toExceed Amount of $375,522 to Provide Project Management and Consulting Services forthe City’s Downtown Housing Plan for a Term of Two‐years with an Optional One‐yearExtension. CEQA Action: Agreements are not subject to CEQA10.Approval of Professional Services Contract with Ecology Action for a Not‐to‐ExceedAmount of $139,968 for City of Palo Alto Safe Routes to School Spring/Fall Programming;CEQA status – categorically exempt (educational program).11.SECOND READING: Ordinance of the Council of the City of Palo Alto Amending Chapter8.04 (Street, Trees, Shrubs, and Plants) and Chapter 8.10 (Tree Preservation andManagement Regulations) (FIRST READING: January 16, 2024 PASSED 5‐2, Lythcott‐Haims, Tanaka no)12.Approval of the Appointment of Lauren Lai as the Administrative Services Director/Chief Financial OfficerCITY MANAGER COMMENTS (6:55 ‐ 7:10 PM)BREAK (5‐10 MINUTES) ACTION ITEMS (Item 13: 7:20 ‐ 7:35 PM, Item 14: 7:35 ‐ 9:05 PM, Item 15: 9:05 ‐ 10:05 PM, Item 16: 10:05 ‐ 10:35 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters. 13.PUBLIC HEARING: Objections to Weed Abatement at Affected Properties and Approval of Affected Property List for Commencing Weed Abatement in 2024; CEQA status – exempt 14.Adoption of a Resolution Suspending Enforcement of Municipal Code Sections 16.14.090, 16.14.110 and 16.14.300 Requiring All‐electric Construction and Direction to Staff to Commence Work on Local Amendments to the California Energy Code Establishing a One Margin Standard. CEQA Status – Not a Project. 15.Policy and Services Committee Recommendations for Changes to the City Council Procedures and Protocols Handbook based on Prior City Council Referrals (Review of Censure Language). CEQA Status ‐ Not a Project. 16.Discussion on the 2024 Boards and Commissions Recruitment. CEQA Status ‐ Not a Project. ADJOURNMENT OTHER INFORMATION Standing Committee Meetings this week Public Comment Letters Schedule of Meetings 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 26, 2024 Materials submitted after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. CITY COUNCILRegular MeetingMonday, February 26, 2024Council Chambers & Hybrid5:30 PMPalo 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.Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that: (1) sticks,posts, poles or similar/other type of handle objects are strictly prohibited; (2) the items do notcreate a facility, fire, or safety hazard; and (3) persons with such items remain seated whendisplaying them and must not raise the items above shoulder level, obstruct the view orpassage of other attendees, or otherwise disturb the business of the meeting.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 ‐ 6:30 PM)1.CONFERENCE WITH CITY ATTORNEY‐ EXISTING LITIGATION Subject: Reinert v. City ofPalo Alto Santa Clara County Superior Court Case No. 21‐CV‐391286 (One Case, asDefendant) Authority: Government Code Section 54956.9(d)(1)AGENDA CHANGES, ADDITIONS AND DELETIONSPUBLIC COMMENT (6:30 ‐ 6:45 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 (6:45 ‐ 6:50 PM)Members of the public may not speak to the item(s).CONSENT CALENDAR (6:50 ‐ 6:55 PM)Items will be voted in one motion unless removed from the calendar by three Council Members.2.Approval of Minutes from February 5, 2024 and February 12, 2024 meetings.3.Appointment of 2024 Emergency Standby Council4.City Councilmember Appointment to the Santa Clara County Housing and CommunityDevelopment Advisory Committee (HCDAC)5.Adopt a Resolution Authorizing the City Manager or Their Designee to Execute a ThirdPhase Agreement with Northern California Power Agency for the Purchase of up to 2,800Megawatt‐Hours per Year of Biogas Energy from Zero Waste Energy DevelopmentCompany, LLC over a Term of up to 10 Years for a Total Not to Exceed Amount of $5.7Million; CEQA Status: Not a Project under CEQA Guidelines Section 15378(b)(5)6.Approval of Amendment No. 6 to Contract No. C16163034A with Nova Partners, Inc. toAdd $766,919, Increasing the Not to Exceed Amount to $9,647,825, for AdditionalConstruction Management Services for the New Public Safety Building CapitalImprovement Program Project (PE‐ 15001) and Extend the Contract Term; and Approval ofAmendment No. 2 to Contract No. S20177452 with Schaaf & Wheeler Consulting CivilEngineers to Add $9,600, Increasing the Not to Exceed Amount to $20,200, for AdditionalProfessional Services and Extend the Contract Term for the New Public Safety BuildingCapital Improvement Program project (PE‐ 15001); CEQA: Environmental Impact Reportfor the New Public Safety Building and New California Avenue Area Parking Garage(Resolution No. 9772)7.Approval of Amendment No. 1 to Professional Services Agreement S21180224 withMatrix Consulting Group for a Planning and Development Services Fee Study in theAmount of $56,500 for a total Not to Exceed of $138,000 and Extension of the ContractTerm through January 31, 2026. Environmental Assessment: Exempt in Accordance withCEQA Guidelines Section 15061(3)(b).8.Approve and Authorize the City Manager to Execute a Funding Agreement with the ValleyTransportation Authority (VTA) to Accept a $250,000 Grant as part of the 2010 MeasureB Vehicle Registration Fee (VRF) Countywide Program Cycle Four; CEQA status –Statutorily Exempt.9.Approve Two Contracts for Consultant Services for the Downtown Housing Plan: ContractNumber C24187236 with Wallace Roberts & Todd, LLC (WRT) for a Not‐to ExceedAmount of $1,508,254 to Provide Planning and Consulting Services to Develop the City’sDowntown Housing Plan for a Term of Two‐years with an Optional One‐year Extension;and Contract Number C24187237 with Good City Company (Good City) for a Not‐toExceed Amount of $375,522 to Provide Project Management and Consulting Services forthe City’s Downtown Housing Plan for a Term of Two‐years with an Optional One‐yearExtension. CEQA Action: Agreements are not subject to CEQA10.Approval of Professional Services Contract with Ecology Action for a Not‐to‐ExceedAmount of $139,968 for City of Palo Alto Safe Routes to School Spring/Fall Programming;CEQA status – categorically exempt (educational program).11.SECOND READING: Ordinance of the Council of the City of Palo Alto Amending Chapter8.04 (Street, Trees, Shrubs, and Plants) and Chapter 8.10 (Tree Preservation andManagement Regulations) (FIRST READING: January 16, 2024 PASSED 5‐2, Lythcott‐Haims, Tanaka no)12.Approval of the Appointment of Lauren Lai as the Administrative Services Director/Chief Financial OfficerCITY MANAGER COMMENTS (6:55 ‐ 7:10 PM)BREAK (5‐10 MINUTES)ACTION ITEMS (Item 13: 7:20 ‐ 7:35 PM, Item 14: 7:35 ‐ 9:05 PM, Item 15: 9:05 ‐ 10:05 PM, Item16: 10:05 ‐ 10:35 PM)Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, UnfinishedBusiness and Council Matters.13.PUBLIC HEARING: Objections to Weed Abatement at Affected Properties and Approvalof Affected Property List for Commencing Weed Abatement in 2024; CEQA status –exempt14.Adoption of a Resolution Suspending Enforcement of Municipal Code Sections16.14.090, 16.14.110 and 16.14.300 Requiring All‐electric Construction and Direction toStaff to Commence Work on Local Amendments to the California Energy CodeEstablishing a One Margin Standard. CEQA Status – Not a Project.15.Policy and Services Committee Recommendations for Changes to the City CouncilProcedures and Protocols Handbook based on Prior City Council Referrals (Review ofCensure Language). CEQA Status ‐ Not a Project.16.Discussion on the 2024 Boards and Commissions Recruitment. CEQA Status ‐ Not aProject.ADJOURNMENTOTHER INFORMATIONStanding Committee Meetings this weekPublic Comment Letters Schedule of Meetings 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. 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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 26, 2024 Materials submitted after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. City Council Staff Report Report Type: CONSENT CALENDAR Lead Department: City Clerk Meeting Date: February 26, 2024 Report #:2402-2610 TITLE Approval of Minutes from February 5, 2024 and February 12, 2024 Meetings RECOMMENDATION That the minutes be reviewed and approved. ATTACHMENTS Attachment A: February 5, 2024 Draft Action Minutes Attachment B: February 12, 2024 Draft Action Minutes APPROVED BY: Mahealani Ah Yun Item 2 Item 2 Staff Report        Item 2: Staff Report Pg. 1  Packet Pg. 6 of 318  CITY COUNCIL & PUBLIC IMPROVEMENT CORPORATION DRAFT ACTION MINUTES Page 1 of 6 Special Meeting February 5, 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: Special Orders of the Day 1. Santa Clara County 2023 Synopsys Championship Science Fair 2023 STEM Winners from Palo Alto No action was taken. Closed Session 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 MOTION: Vice Mayor Lauing moved, seconded by Council Member Veenker to go into Closed Session. MOTION PASSED: 7-0 Council went into Closed Session at 5:51 P.M. Council returned from Closed Session at 7:00 P.M. Mayor Stone announced no reportable action. Item 2 Attachment A - February 5, 2024 Draft Action Minutes        Item 2: Staff Report Pg. 2  Packet Pg. 7 of 318  DRAFT ACTION MINUTES Page 2 of 6 Sp. City Council Meeting Draft Action Minutes: 02/05/2024 Consent Calendar Council Member Kou registered a no vote on Agenda Item Number 10. Council Member Tanaka registered a no vote on Agenda Item Number 4, 5, 6. Mayor Stone, Vice Mayor Lauing, and Council Member Kou, Council Member Veenker requested to pull Agenda Item Number 7. Council Member Tanaka, Council Member Lythcott-Haims, Council Member Veenker, and Mayor Stone requested to pull Agenda Item Number 8. MOTION: Council Member Burt moved, seconded by Council Member Lauing to approve Agenda Item Numbers 2-6, 9-11, and pull Agenda Item Number 7 and 8 off of Consent. MOTION PASSED ITEMS 2-3, 9, 11: 7-0 MOTION PASSED ITEMS 4-6: 6-1, Tanaka no MOTION PASSED ITEM 10: 6-1, Kou no 2. Approval of Minutes from January 16, 2024 Meeting 3. Review and Acceptance of Annual Report on Development Impact Fees for Fiscal Year 2023 and Adoption of a Resolution Making Statutory Findings for Certain Funds. CEQA status - Not a Project. 4. Approval of Amendment Number 1 to Contract Number S21180652 With Eric Gouldsberry Art Design (EGAD), in the Amount of $170,000 for Graphic Design Services to Extend the Term for Additional Two Years; for a Total Not-to-Exceed Amount of $410,000 over the Five-year Term; CEQA Status – Not a Project 5. Approval of Amendment No. 2 to Contract S23184693 with Infosend, Inc. for Printing Services for the Utilities Department Programs and Projects to add $300,000 for a New Total Not to Exceed Amount of $555,000, and to Amend the Schedule of Rates. CEQA status: not a project. 6. Approval of Contract No. C23187298C with Hinderliter, de Llamas, and Associates (HdL) for Business Tax and Business Registry Certificate Program Fee Consulting Services in a Total Not-To-Exceed Amount of $860,555 Over a Three-Year Term; CEQA Status – Not a Project 7. SECOND READING: Adopt Ordinances Amending Planned Community Ordinance 2343 for 2901-2905 Middlefield Road and Establishing a Separate Planned Community Zoning Designation for 702 Ellsworth Place to Enable the Development of a new Single-Story, Single-Family Residence. CEQA Status -- Categorically Exempt Under CEQA Guidelines Item 2 Attachment A - February 5, 2024 Draft Action Minutes        Item 2: Staff Report Pg. 3  Packet Pg. 8 of 318  DRAFT ACTION MINUTES Page 3 of 6 Sp. City Council Meeting Draft Action Minutes: 02/05/2024 Sections 15061(b)(3), 15301, and 15303 (FIRST READING: December 11, 2023 PASSED 6- 0-1, Veenker absent) 8. SECOND READING: Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 (Street, Trees, Shrubs, and Plants) and Chapter 8.10 (Tree Preservation and Management Regulations) (FIRST READING: January 16, 2024 PASSED 5-2, Lythcott- Haims, Tanaka no) 9. SECOND READING: Adopt an Ordinance to Expand the Public Art Commission (PAC) from Five to Seven Members (FIRST READING: January 16, 2024 PASSED 7-0) 10. SECOND READING: Adoption of 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 Status: An Addendum to the City’s Comprehensive Plan Environmental Impact Report was Prepared for the 2023-2031 Housing Element. (FIRST READING: January 22, 2024 PASSED 6-1, Kou no) 11. SECOND READING: 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 (FIRST READING: January 22, 2024 PASSED 7-0) RECESS CITY COUNCIL MEETING AND CONVENE PUBLIC IMPROVEMENT CORPORATION MEETING Board Members Present: Burt, Kou, Lauing, Lythcott-Haims, Stone, Tanaka, Veenker Action Items 12. Approval of Fiscal Year 2023 Palo Alto Public Improvement Corporation's Annual Financial Report. CEQA Status - Not a Project MOTION: Board Member Burt moved, seconded by Board Member Kou to approve the Fiscal Year (FY) 2023 Annual Financial Report for the Palo Alto Public Improvement Corporation. MOTION PASSED: 6-1, Tanaka no RECONVENE CITY COUNCIL MEETING Item 2 Attachment A - February 5, 2024 Draft Action Minutes        Item 2: Staff Report Pg. 4  Packet Pg. 9 of 318  DRAFT ACTION MINUTES Page 4 of 6 Sp. City Council Meeting Draft Action Minutes: 02/05/2024 Action Items 13. Policy and Services Committee Recommendations for Changes to the City Council Procedures and Protocols Handbook based on Prior City Council Referrals (Continued from December 18, 2023). CEQA Status - Not a Project. MOTION: Council Member Tanaka moved, seconded by Council Member Veenker to: 1. Procedures Section 1.1: Annual Organization of City Council a. Direct staff to return to City Council with information to pursue a ballot measure for 2024 to ask the voters if they would like to have a directly elected mayor or not. The term would be for 2 or 4 years. i. Create an ad hoc that could work with staff to develop the specifics to return to Council with the draft Charter Amendment by June 2024. MOTION PASSED: 5-2, Lauing, Burt no MOTION: Council Member Kou moved, seconded by Council Member Lythcott-Haims to: 1. Update Procedures Section 5.1a(4): Video Participation for Public Comment to read: a. “The City Council does not allow members of the public to activate their personal video during their public comments.” MOTION PASSED: 6-1, Tanaka no MOTION: Council Member Kou moved, seconded by Council Member Veenker to: 1. Protocols Section 2.2: Refrain from Lobbying Board and Commission Members a. Accept the Policy and Services Recommended drafted language. 2. Protocols Section 2.8: The Role of Council Liaison to Boards or Commissions a. Accept the Policy and Services Recommended drafted language with this additional language: “unless the Councilmember has other conflicting duties” MOTION PASSED: 7-0 MOTION: Council Member Kou moved, seconded by Mayor Stone to: 1. Protocols Section 4.3(a): Travel Related to Sister Cities, Sibling City, or other shared interests with another city abroad a. Approve the drafted language with the following amendment: Item 2 Attachment A - February 5, 2024 Draft Action Minutes        Item 2: Staff Report Pg. 5  Packet Pg. 10 of 318  DRAFT ACTION MINUTES Page 5 of 6 Sp. City Council Meeting Draft Action Minutes: 02/05/2024 Replace “for travel that explains how the travel will advance the City’s interests or policy/Council objectives and a consideration of the cost/value relationship of the trip. The request should also explain why virtual attendance is not effective in that circumstance” with “would only be on an occasion where in-person presence of the Council Member or the Mayor was required for that occasion.” MOTION PASSED: 6-1, Tanaka no 14. Policy and Services Committee Recommendation to the City Council to Approve a new Friendship Cities Program in Palo Alto. CEQA Status – Not a Project MOTION: Council Member Burt moved, seconded by Council Member Veenker to approve a new Friendship Cities program with the provisions recommended in the original colleagues’ memo and a few other new provisions related to reevaluation of friendship cities as well as sister cities and the following changes: a. Reevaluated within 3 years and that any Friendship Cities entered into shall expire within 3 years of execution absent mutual agreement to extend. No more than one formal visit by a delegation and the City shall host no more than one delegation visit per year per Friendship City, and; b. That the provisions suggested in the Colleague's Memo related to the volunteers of Neighbors Abroad taking primary responsibility and that it fits with Neighbors Abroad policies, and; c. Every two years a report to be provided by Neighbors Abroad on the state of sister city relationships. MOTION PASSED: 7-0 Adjournment: The meeting was adjourned at 11:11 P.M. Item 2 Attachment A - February 5, 2024 Draft Action Minutes        Item 2: Staff Report Pg. 6  Packet Pg. 11 of 318  DRAFT ACTION MINUTES Page 6 of 6 Sp. City Council Meeting Draft Action Minutes: 02/05/2024 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 - February 5, 2024 Draft Action Minutes        Item 2: Staff Report Pg. 7  Packet Pg. 12 of 318  CITY COUNCIL DRAFT ACTION MINUTES Page 1 of 5 Regular Meeting February 12, 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: Closed Session 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 MOTION: Council Member Veenker moved, seconded by Council Member Lauing to go into Closed Session. MOTION PASSED: 7-0 Council went into Closed Session at 5:34 P.M. Council returned from Closed Session at 6:42 P.M. Mayor Stone announced no reportable action. Study Session 1. Reliability and Resiliency Strategic Plan for the City’s Electric Utility NO ACTION TAKEN. Consent Calendar Council Member Tanaka registered a no vote on Agenda Item Numbers 4, 7, 8, 9. Item 2 Attachment B - February 12, 2024 Draft Action Minutes        Item 2: Staff Report Pg. 8  Packet Pg. 13 of 318  DRAFT ACTION MINUTES Page 2 of 5 City Council Meeting Draft Action Minutes: 02/12/2024 Council Member Veenker recused on Agenda Item Number 5. MOTION: Council Member Burt moved, seconded by Council Member Lythcott-Haims to approve Agenda Item Numbers 2-9. MOTION PASSED ITEMS 2-3, 6: 7-0 MOTION PASSED ITEMS 4, 7, 8, 9: 6-1, Tanaka no MOTION PASSED ITEM 5: 6-0-1, Veenker recused 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 Item 2 Attachment B - February 12, 2024 Draft Action Minutes        Item 2: Staff Report Pg. 9  Packet Pg. 14 of 318  DRAFT ACTION MINUTES Page 3 of 5 City Council Meeting Draft Action Minutes: 02/12/2024 $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 Action Items 10. Adopt a Resolution Modifying the City’s Objective Design Standards for SB 9 Projects. MOTION: Council Member Lythcott-Haims moved, seconded by Council Member Veenker to adopt the attached Resolution (Attachment A) modifying the objective design standards for development pursuant to California Senate Bill 9 (SB 9). MOTION PASSED: 5-2, Lauing, Kou no 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. MOTION: Council Member Burt moved, seconded by Council Member Lauing to 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; 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. MOTION PASSED: 6-1, Tanaka no 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 MOTION: Council Member Kou moved, seconded by Mayor Stone to 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. MOTION PASSED: 6-1, Tanaka no Item 2 Attachment B - February 12, 2024 Draft Action Minutes        Item 2: Staff Report Pg. 10  Packet Pg. 15 of 318  DRAFT ACTION MINUTES Page 4 of 5 City Council Meeting Draft Action Minutes: 02/12/2024 Adjournment: The meeting was adjourned at 10:52 P.M. Item 2 Attachment B - February 12, 2024 Draft Action Minutes        Item 2: Staff Report Pg. 11  Packet Pg. 16 of 318  DRAFT ACTION MINUTES Page 5 of 5 City Council Meeting Draft Action Minutes: 02/12/2024 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 - February 12, 2024 Draft Action Minutes        Item 2: Staff Report Pg. 12  Packet Pg. 17 of 318  City Council Staff Report Report Type: CONSENT CALENDAR Lead Department: City Clerk Meeting Date: February 26, 2024 Report #:2401-2570 TITLE Appointment of 2024 Emergency Standby Council RECOMMENDATION Staff recommends the City Council approve the selection of the following former Council Members to serve as members of the 2024 Emergency Standby Council: •Alison Cormack •Peter Drekmeier •Eric Filseth •Karen Holman •Liz Kniss •Greg Schmid •Nancy Shepherd BACKGROUND The Charter of the City of Palo Alto provides that, "the Council may, by Ordinance or Resolution, provide for the preservation and continuation of government in the event of disaster which renders unavailable a majority of the Council." On August 7, 2006, the City Council adopted amendments to Section 2.12.090 of the Palo Alto Municipal Code regarding the selection procedure for the City's Emergency Standby Council. The adopted policy states that the Council shall consider the following criteria for appointments to the Emergency Standby Council: residency in the City of Palo Alto, availability, interest in serving and a lack of conflicts of interest. Seven members serve on the Emergency Standby Council. Members of the Standby Council have the authority delegated to them under Chapter 2.12 of the Palo Alto Municipal Code. The members of the Emergency Standby Council continue to serve until the Council appoints or reappoints the members at the beginning of each year. Item 3 Item 3 Staff Report        Item 3: Staff Report Pg. 1  Packet Pg. 18 of 318  FISCAL/RESOURCE IMPACT ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Item 3 Item 3 Staff Report        Item 3: Staff Report Pg. 2  Packet Pg. 19 of 318  3 8 5 2 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Planning and Development Services Meeting Date: February 26, 2024 Report #:2401-2573 TITLE City Councilmember Appointment to the Santa Clara County Housing and Community Development Advisory Committee (HCDAC) RECOMMENDATION Approve the appointment of Councilmember Julie Lythcott-Haims as representative to the Santa Clara County HCDAC, and Councilmember Greer Stone as alternate for the 2024 calendar year. BACKGROUND Formed in 2018, the nine-member HCDAC for the Urban County1 is a result of the merger of the Housing and Community Development (HCD) Citizen's Advisory Committee (CAC), and the HCD Council Committee (CC) for the Urban County Community Development Block Grant (CDBG) Program and HOME Investment Partnerships Program (HOME) Consortia. As Palo Alto is part of the HOME program consortium, HCDAC participation is requested. The City has not participated in the HCDAC in previous years. Below is a summary of the basic requirements of the HCDAC, please see the attached 2018 Bylaws for additional information on the HCDAC’s responsibilities and meeting protocols. HCDAC Role The HCDAC is the policy recommending body to the Santa Clara County Board of Supervisors on planning, monitoring, and implementation of the HCD Program and the development of a comprehensive, coordinated Housing and Community Development Program. The HCDAC, consisting of representatives of the Urban County jurisdictions (Campbell, Los Altos, Los Gatos, Saratoga, and Morgan Hill) selected by the City Councils and the Board of Supervisors, and a City Council member from each of the cities (Palo Alto, Cupertino, and Gilroy) participating in the Urban County CDBG and HOME Investment Partnerships (HOME) Programs, will review program materials and develop recommendations from an urban county perspective. 1 Information about the Urban County: https://osh.sccgov.org/housing-community-development/urban-county- program Item 4 Item 4 Staff Report        Item 4: Staff Report Pg. 1  Packet Pg. 20 of 318  3 8 5 2 Responsibility The HCDAC meets approximately five times per year with one-year term commitments for each member. The primary responsibilities of the HCDAC are to: a)Develop recommendations on the Five-Year Urban County Consolidated Plan and the Annual Plan which provides the framework for funding projects. b)Develop recommendations on projects to be funded addressing the objectives approved in the Consolidated Plan. c)Monitor the progress of approved projects on a quarterly basis and prepare recommendations on projects facing significant delays. d)Evaluate the overall direction and implementation of the program on a yearly basis and prepare recommendations on housing policies and procedures. This will include site inspections of projects, review of quarterly and annual performance reports, and overall program performance evaluation. e)Transmit the HCDAC recommendations on project proposals to the Board of Supervisors in order to make final funding recommendations on the CDBG and HOME projects and programs. Next Steps The HCDAC meetings are tentatively planned to begin in March 2024. Once the Council representative is selected, the HCDAC meeting liaison will initiate the coordination of these meetings. FISCAL/RESOURCE IMPACT No fiscal impact is associated with this action. ENVIRONMENTAL REVIEW Appointment to a board or committee is not an action subject to environmental review under the California Environmental Quality Act. ATTACHMENTS Attachment A: HCDAC Bylaws June 2018 APPROVED BY: Jonathan Lait, Planning and Development Services Director Item 4 Item 4 Staff Report        Item 4: Staff Report Pg. 2  Packet Pg. 21 of 318  County of Santa Clara Housing and Community Development Advisory Committee Board of Supervisors: Mike Wasserman, Cindy Chavez, Dave Cortese, Susan Ellenberg, S. Joseph Simitian Page 1 of 3 County Executive: Jeffrey V. Smith 90854 DATE: June 5, 2018 TO: Board of Supervisors FROM: Consuelo Hernandez, Program Manager II SUBJECT: Housing and Community Development Advisory Committee (HCDAC) - Amendment to Bylaws RECOMMENDED ACTION Approve Amendment to Bylaws for the Housing and Community Development Advisory Committee. FISCAL IMPLICATIONS There are no fiscal implications associated with the recommended action. REASONS FOR RECOMMENDATION An amendment to the current bylaws is needed in order to reflect the current composition of the Housing and Community Development Advisory Committee (HCDAC). The Office of Supportive Housing (OSH) has worked closely with the HCDAC and each of the cities to understand the impact of the changes. The proposed changes to the HCDAC bylaws were integrated into the updated 2017 Joint Powers Agreement (the agreement required by the U.S. Department of Housing and Urban Development for the Community Development Block Grant program – CDBG). Each of the Urban County members have agreed to the changes. Currently, the HCDAC is comprised of 16 members. The changes reduce the HCDAC to nine members. Eight seats have remained vacant as a result of the anticipated changes. Unfortunately, the HCDAC did not review and approve the bylaws before the vacancies occurred and the HCDAC does not currently have enough members to meet the quorum requirements. As a result, the Board needs to approve the amended bylaws in order for the HCDAC membership to be updated to allow the HCDAC to meet. Revisions to the HCDAC bylaws contain a number of minor technical updates and also updates to reflect current practices and reflect the updated composition of the HCDAC. The following is a high-level summary of the changes: Item 4 Attachment A - HCDAC Bylaws June 2018        Item 4: Staff Report Pg. 3  Packet Pg. 22 of 318  Board of Supervisors: Mike Wasserman, Cindy Chavez, Dave Cortese, Susan Ellenberg, S. Joseph Simitian Page 2 of 3 County Executive: Jeffrey V. Smith Agenda Date: June 5, 2018  Updated Article I, Section I to include the HOME Investment Partnership Act (HOME) Consortia members.  Updated Article III, Section I relating to the membership of the HCDAC by adding one member of the City Council from each of the jurisdictions participating in the HOME Consortia and eliminating the citizen appointments, and specifying the designation of an alternate for each member.  Updated Article III, Section II to specify a term is one year and until a successor is appointed.  Updated Article VI to reflect that the Clerk of the Board of Supervisors provides secretarial support to the HCDAC and the Office of Supportive Housing provides staff support.  Added Article XI to reflect the process for County boards/commissions’ creation of subcommittees.  Added Article XIII to identify the required trainings for members of the HCDAC. CHILD IMPACT The recommended action will have no/neutral impact on children and youth. SENIOR IMPACT The recommended action will have no/neutral impact on seniors. SUSTAINABILITY IMPLICATIONS The recommended action will have no/neutral sust ainability implications. BACKGROUND The primary role of the HCDAC is to advise the Board of Supervisors regarding the use of CDBG and HOME funds. The HCDAC is a result of the merger of the Housing and Community Development (HCD) Citizens Advisory Committe e (CAC) and the HCD Council Committee (CC) for the Urban County CDBG program that took place in 2007. Over the past two years OSH has been working on making changes to the bylaws to better reflect the current operation of the HCDAC and to streamline the Urban County Program. CONSEQUENCES OF NEGATIVE ACTION If the Board does not approve the recommended action the HCDAC would not have a quorum and would be unable to meet. As a result, the Board would be required to review funding recommendations for the Urban County program without a recommendation from the HCDAC. STEPS FOLLOWING APPROVAL Item 4 Attachment A - HCDAC Bylaws June 2018        Item 4: Staff Report Pg. 4  Packet Pg. 23 of 318  Board of Supervisors: Mike Wasserman, Cindy Chavez, Dave Cortese, Susan Ellenberg, S. Joseph Simitian Page 3 of 3 County Executive: Jeffrey V. Smith Agenda Date: June 5, 2018 Upon approval, the Clerk of the Board is asked to notify Consuelo Hernandez (Consuelo.hernandez@hhs.sccgov.org ), Eloiza Murillo-Garcia (Eloiza.murillogarcia@hhs.sccgov.org)and Tracy Cunningham (Tracy.Cunningham@hhs.sccgov.org). ATTACHMENTS:  Attachment A: Amended HCDAC Bylaws (clean version) (PDF)  Attachment B: Amended HCDAC Bylaws (redline) (PDF)  Attachment C - Changes to Urban County Program (2015) (PDF) Item 4 Attachment A - HCDAC Bylaws June 2018        Item 4: Staff Report Pg. 5  Packet Pg. 24 of 318  BYLAWS Housing and Community Development Advisory Committee (HCDAC) ARTICLE I _ ESTABLISHMENT Section I The Housing and Community Development Advisory Commiffee (HCDAC) for the Urban County is a result of the merger of the Housing and Community Development (HCD) Citizen's Advisory Committee (CAC), and the HCD Council Committee (CC) for the Urban County Community Development Block Grant (CDBG) Program and HOME Consortia. ARTICLE II - ROLE AIID RESPONSIBILITIES Section I - Role The HCDAC is the policy recommending body to the Board of Supervisors on planning, monitoring, and implementation of the HCD Program and the development of a comprehensive, coordinated Housing and Community Development Program. The body, consisting of representatives of the Urban County jurisdictions selected by the City Councils and the Board of Supervisors, and a City Council member from each of the cities participating in the Urban County CDBG and HOME Investment Partnerships (HOME) Programs, will review program materials and develop recommendations from an urban county perspective. Section II - Responsibilitv The responsibilities of the HCDAC are to: a) Develop recommendations on the Five-Year Urban County Consolidated Plan and the Annual Plan which provides the framework for funding projects. b) Develop recommendations on projects to be funded addressing the objectives approved in the Consolidated Plan. c) Monitor the progress of approved projects on a quarterly basis and prepare recommendations on projects facing significant delays. d) Evaluate the overall direction and implementation of the program on a yearly.basis and prepare recommendations on housing policies and procedures. This will include site inspections of projects, review of quarterly and annual performance reports, and overall program performance evaluation. e) Transmit the HCDAC recommendations on project proposals to the Board of Supervisors in order to make final funding recommendations on the CDBG and HOME projects and programs. Housing and Community Development Advisory Committee Bylaws Page 1 of9 June 2018 Ap p r o v e d : 0 6 / 0 5 / 2 0 1 8 Item 4 Attachment A - HCDAC Bylaws June 2018        Item 4: Staff Report Pg. 6  Packet Pg. 25 of 318  Section III - Relationship to the Board of Supervisors The Board of Supervisors is the legal recipient of funds from the U.S. Department of Housing and Urban Development (HUD) for the CDBG and HOME programs. The Board of Supervisors will consider all recommendations submitted by the HCDAC regarding the HCD program. The HCDAC will submit recommendations to the Board of Supervisors on all matters dealing with planning, funding, monitoring, and evaluation of the HCD program. ARTICLE III _ MEMBERSHIP Section I - Membership Membership on the HCDAC consists of nine members as follows: a. One member of the County of Santa Clara Board of Supervisors, who will serve as Chairperson of the HCDAC, to be appointed by the President of the Board of Supervisors. b. One member of the City Council from each of the non-entitlement cities participating in the Urban County CDBG and HOME programs, consisting of five members from the cities of Campbell, Los Altos, Town of Los Gatos, Morgan Hill, and Saratoga, appointed by the City Council of that city. c. One member of the City Council from each of the jurisdictions participating in the HOME Consortia, consisting of three members from the cities of Cupertino, Gilroy, and Palo Alto appointed by the City Council of that city. d. Each member shall have a designated alternate who shall be appointed by the member's jurisdiction in the same manner the member is appointed. A member's designated alternate may attend and vote when the member is unable to attend a meeting. Section II - Term a) Term of membership is effective from the day of appointment to the HCDAC. b) Each member shall have a term of one year and until his or her successor is appointed. c) There is no limit on the number of consecutive terms a member may serve. d) The term of an elected official will automatically terminate upon leaving the elective office. e) Upon appointment, each member and alternate shall take the Oath of Office. A certified copy of the Oath shall be filed with the Clerk of the Board of Supervisors. Housing and Community Development Advisory Committee Bylaws Page2 of9 June 2018 Item 4 Attachment A - HCDAC Bylaws June 2018        Item 4: Staff Report Pg. 7  Packet Pg. 26 of 318  Section III - Attendance a) Any member not in attendance at three (3) consecutive meetings, unless excused by the majority of the HCDAC members, may be removed from the HCDAC with a request to the appointing jurisdiction to appoint a replacement. b) An altemate may not represent a member for more than three (3) consecutive meetings without prior approval of the majority of HCDAC. Section IV - Replacement of a member In the event thal amember wishes to resign from the HCDAC or is recalled by the appointing authority, the appointing jurisdiction shall be requested to appoint a new member. A resignation by a member shall be in writing and shall be filed with the Clerk of the Board of Supervisors and the Chairperson of the HCDAC. ARTICLE IV _ OFFICERS Section I - Officers The officers of this organization will be: a) Chairperson b) Vice-Chairperson The Chairperson and Vice-Chairperson will be regular voting members of the HCDAC. Section II - Chairperson The permanent Chairperson will be the appointed Supervisor from the County of Santa Clara Board of Supervisors. Section III - Vice-Chairperson The Vice-Chairperson will be elected at the first meeting of the fiscal year (July 1 - June 30) and will serve a 12-month term of office. Section IV - Nominations Nominations for the Vice-Chairperson will come from the members of the HCDAC. Nominations may be submitted from one month prior to the meeting date on which the election is to be held, up to and including the day of the election. Section V - Term There is no limit on the number of consecutive terms the Vice-Chairperson may serve. Housing and Community Development Advisory Committee Bylaws Page 3 of9 June 2018 Item 4 Attachment A - HCDAC Bylaws June 2018        Item 4: Staff Report Pg. 8  Packet Pg. 27 of 318  Section VI - Chairperson Vacancv In the case that the Chairperson's seat is vacated, as through resignation, death, or leaving elective office, a new Chairperson will be appointed by the President of the Board of Supervisors. The Vice-Chairperson will stand in for the Chairperson until the new Chairperson is appointed. Section VII - Vice airnerson Vacancv In the case that the Vice-Chairperson's seat is vacated, as through resignation, death, or leaving elective office, a special election of the HCDAC will be held at the earliest meeting at which such election is practicable. At the time of the election, nominations from the HCDAC membership may be submitted. Such election shall be for the unexpired term of the office. ARTICLE V _ DUTIES OF OFFICERS Section I -of Chairnerson The Chairperson will a) Preside at meetings of the HCDAC. b) Appoint subcommittees as required, subject to confirmation by the membership. c) Coordinate the work and recommendations of the HCDAC. d) Prepare work and recommendation reports for presentation to the Board of Supervisors. e) Perform other duties customarily performed by a Chairperson. Duties of the Chairperson can be delegated by the Chairperson to other members of the HCDAC. Section II - Duties of the Vice-Chairperson The Vice-Chairperson will: a) Upon temporary absence or incapacity of the Chairperson, serve as Chairperson. b) Assist the Chairperson in serving as liaison to the Board of Supervisors. ARTICLE VI - SECRETARY SUPPORT Section I - Secretarv The Clerk of the Board of Supervisors shall be ex-officio secretary of the HCDAC and shall be responsible for providing secretarial assistance to the HCDAC, such as preparation of HCDAC agendas, attendance at meetings, preparation of minutes, meeting room support, and maintenance of HCDAC records. However, the Clerk of the Board of Supervisors does not provide secretarial assistance to any subcommittees of the HCDAC. Housing and Community Development Advisory Committee Bylaws Page 4 of9 June 2018 Item 4 Attachment A - HCDAC Bylaws June 2018        Item 4: Staff Report Pg. 9  Packet Pg. 28 of 318  ARTICLE VII - MEETINGS Section I - Regular Meetines Meetings of the HCDAC shall be properly noticed in accordance with the Ralph M. Brown Act (Government Code section 54950 et seq.) and the County Open Govemment Ordinance (Division Al7). One regular meeting of the HCDAC will normally be held approximately five times ayear, at the County Govemment Center, at 6:15 p.m. Each year the HCDAC shall approve its schedule of regular meeting dates prior to the first meeting of the calendar year. The schedule of regular meeting dates can be amended, with the Chairperson's approval, by a majorityvote of the HCDAC members. Section II - Special Meetinss Special meetings of the HCDAC may be called by the Chairperson, with the provision that written notice is given to all members at least seven days prior to the meeting. Section III - Ouorum A quorum of the HCDAC is a majority of its membership seats, whether filled or vacant (5 of 9) A member who abstains from an item is counted to determine whether a quorum exists. However a member who is disqualified from participating and recuses from an item due to a conflict of interest is not counted toward the quorum for that itern. ARTICLE VIII - VOTING PROCEDURES Section I At the time of voting on any issues before the HCDAC, each member will cast one vote. Section II Only members or their authoized alternates who are present may vote. An alternate may only vote when serving in the absence of a member. Section III Except as otherwise provided herein, a motion passes only when a majority of the membership seats (5 of 9) votes in support of the motion. In compliance with Government Code section 54953(c)(2) of the Ralph M. Brown Act, the HCDAC shall publicly report any action taken and the vote or abstention on that action of each member present for the action. Items cannot be approved by consensus. Housing and Community Development Advisory Committee Bylaws Page 5 of9 June 2018 Item 4 Attachment A - HCDAC Bylaws June 2018        Item 4: Staff Report Pg. 10  Packet Pg. 29 of 318  ARTICLE IX - GENERAL RULES OF PROCEDURE Section I No member or officer of the HCDAC will issue any public statement which purports to be an official opinion or stand of the HCDAC unless such statement has been authoizedby a majority vote in a meeting at which a quorum is present, subject to any applicable requirements of the Board of Supervisors' Policy Manual. Section II Except as provided in these bylaws or to comply with state or county law or policy, Roberts Rules of Order will be used in the conduct of all meetings. ARTICLE X _ PUBLIC PARTICIPATION Section I All meetings of the HCDAC and any subcommittees subject to the Ralph M. Brown Act are open to the public. Section II Agenda and minutes of all meetings of the HCDAC will be made available to the public on the County of Santa Clara's website and upon request at the Office of the Clerk of the Board of Supervisors. Reports will be made available to the public at the same time they are available to the HCDAC. Copies for public review will be available in the Office of the Clerk of the Board of Supervisors located at 70 West Hedding Street, 1Oth floor, East Wing, San Jose 95110. Interested persons may request to be placed on the notification list for HCDAC minutes and agendas. ARTICLE XI _ SUBCOMMITTEES Section I - Creation of Subcommittees Generallv The HCDAC may establish standing and ad hoc subcommittees, as prescribed in these bylaws and the County of Santa Clara Boards and Commissions Handbook, to assist in furthering the purposes of the HCDAC. Any subcommittee will have the duties provided by its mandate, but will not have the power to exercise the authority of the HCDAC or to bind the HCDAC. Subcommittees report their recommendations to the full HCDAC for consideration. Subcommittees may be composed of members from the HCDAC as well as individuals not on the HCDAC. However, a subcommittee may not include a quorum of the entire HCDAC membership. Housing and Community Development Advisory Committee Bylaws Page 6 of9 June 2018 Item 4 Attachment A - HCDAC Bylaws June 2018        Item 4: Staff Report Pg. 11  Packet Pg. 30 of 318  In creating any subcommittee, the HCDAC will: l. Define the purpose and scope of the subcommittee's charge; 2. Identify if the subcommittee will have an ongoing role in a particular subject arealissue or if the subcommittee is being created for a limited duration to address a single issue/purpose; 3. Only set a meeting schedule if the subcommittee is to be subject to the Brown Act; 4. Define the membership of the subcommittee; 5. Document the creation of the subcommittee in the HCDAC's minutes; 6. If the subcommittee is subject to the Brown Act, immediately notify the Clerk of the Board's Records Unit; and 7. If the subcommittee is to be a standing subcommittee, update the bylaws for approval by the Board of Supervisors. Section II - Creation of Standing Subcommittees A standing subcommittee has a continuing subject matter it oversees or a meeting schedule fixed by formal action. A standing subcommittee may be created following majority approval of the HCDAC and designation in the HCDAC's bylaws, approved by the Board of Supervisors. A majority is defined as a majority of the entire HCDAC membership seats. The Chairperson of the HCDAC shall appoint a chair and members to each subcommittee subject to confirmation by the HCDAC. All standing subcommittees are subject to the Brown Act and must be properly noticed, open to the public, and have a quorum of the subcommittee membership present to transact business. Each standing subcommittee is required to prepare an agenda for each meeting and ensure the agenda is properly posted. Minutes (in summary form) of each subcommittee meeting shall be prepared and shall include a record of attendance of the members and the vote taken on each matter. Copies of the minutes shall be submitted to the next meeting of the subcommittee for approval. Section III - Standine Subcommittees of the HCDAC The HCDAC has no standing subcommittees. Section IV - Creation of Ad Hoc Subcommittees An ad hoc subcommittee may be established by the HCDAC, as the need arises, to carry out a specific task for a limited duration. An ad hoc subcommittee may be created following majority approval of the HCDAC. A majority is defined as a majority of the entire HCDAC membership seats. Housing and Community Development Advisory Committee Bylaws PageT of9 June 2018 Item 4 Attachment A - HCDAC Bylaws June 2018        Item 4: Staff Report Pg. 12  Packet Pg. 31 of 318  The Chairperson of the HCDAC shall appoint a chair and members to each subcommittee subject to confirmation by the HCDAC. If an ad hoc subcommittee includes as a member one or more individuals who is not a member of the HCDAC, the ad hoc subcommittee is subject to the Ralph M. Brown Act. For ad hoc subcommittees subject to the Brown Act, meetings must be properly noticed, open to the public, and have a quorum of the subcommittee membership present to transact business. Each ad hoc subcommittee that is subject to the Brown Act is required to prepare an agenda for each meeting, ensure the agenda is properly posted. Minutes (in summary form) of each subcommittee meeting shall be prepared and shall include a record of attendance of the members and the vote taken on each matter. Copies of the minutes shall be submitted to the next meeting of the subcommittee for approval. Section V - Disbandins Ad Hoc Suhcommittees The HCDAC shall agendize the disbanding of an ad hoc subcommittee when the subcommittee's specific task is completed. The disbanding of the ad hoc subcommittee shall be noted in the HCDAC's meeting minutes. ARTICLE XII _ CONFLICTS OF INTEREST Section I Members of the HCDAC shall comply with the requirements of all applicable federal, state, and local laws and regulations relating to conflicts of interest, including, without limitation, Califomia Government Code section 1090, et seq., the California Political Reform Act (California Govemment Code section 87100 et seq.), and the regulations of the Fair Political Practices Commission concerning disclosure and disqualification (2 California Code of Regulations section 18700 et seq.). Generally, if a member is disqualified from participating in a decision because of a conflict of interest, the member must (1) publicly recuse him or herself and announce the source of the conflict of interest, (2) leave the room during any discussion or deliberations on the matter in question, and (3) not participate in the decision or be counted for purposes of a quorum. ARTICLE XIII _ TRAININGS Section I - AB 1234 Ethics Trainine Each member must receive training in public service ethics laws and principles within 12 months of assuming membership on HCDAC and every two years thereafter. If a member has already received the training prior to assuming mernbership, the member may submit proof of his/her last training completion. The signed certification of completion must be sent to the Clerk of the Board as soon as practicable upon completion of the training. Housing and Community Development Advisory Committee Bylaws Page 8 of9 June 2018 Item 4 Attachment A - HCDAC Bylaws June 2018        Item 4: Staff Report Pg. 13  Packet Pg. 32 of 318  Section II - AB l66L Sexual Harassment Prevention Training Each member must receive training regarding the federal and state statutory provrsrons concerning the prohibition against, and the prevention and correction of, sexual harassment and the remedies available to victims of sexual harassment in employment within six months of assuming office on HCDAC and every two years thereafter. If a member has already received the training prior to assuming membership, the member may submit proof of his/her last training completion. The certification of completion must be sent to the Clerk of the Board as soon as practicable upon completion of the training. ARTICLE IV - APPROVAL AND AMMENDMENTS Section I All amendments to these bylaws must be approved by the HCDAC mernbership and the Board of Supervisors, following approval as to form and legality by County Counsel. Approved as to Form and Legality Lead Deputy County Counsel Bylaws of the HCD Council Committee were approved by the Board of Supervisors on November 19,1979. Prior amendments to bylaws approved by the Board of Supervisors: 0U09190 0s/22/07 1785606 Housing and Community Development Advisory Committee Bylaws Page 9 of9 June 2018 Item 4 Attachment A - HCDAC Bylaws June 2018        Item 4: Staff Report Pg. 14  Packet Pg. 33 of 318  City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Utilities Meeting Date: February 26, 2024 Staff Report: 2312-2381 TITLE Adopt a Resolution Authorizing the City Manager or Their Designee to Execute a Third Phase Agreement with Northern California Power Agency for the Purchase of up to 2,800 Megawatt- Hours per Year of Biogas Energy from Zero Waste Energy Development Company, LLC over a Term of up to 10 Years for a Total Not to Exceed Amount of $5.7 Million; CEQA Status: Not a Project under CEQA Guidelines Section 15378(b)(5) RECOMMENDATION Staff recommends that the City Council adopt a Resolution (Attachment A) to: 1. Authorize the City Manager or their designee to execute a Third Phase Agreement (Exhibit A to Attachment A) with the Northern California Power Agency (NCPA) to purchase up to 2,800 MWh of renewable energy per year from an anaerobic digester biogas project owned by Zero Waste Energy Development Company, LLC (ZWED), over a period of 10 years, at a total cost not to exceed $5.7 million; 2. Authorize the City Manager or their designee to execute on behalf of the City all related documents or agreements necessary to administer the Third Phase Agreement that are consistent with the Palo Alto Municipal Code and City Council approved policies, including, but not limited to, collateral assignment agreements; and take any and all actions as are necessary or advisable to implement and administer the Third Phase Agreement; 3. Authorize the City Manager or their designee to approve and execute amendments to the Third Phase Agreement, as may be required from time to time, so long as the contract price and length of the agreement remain unchanged; 4. Waive the application of the anti-speculation requirement of Section D.1 of the City’s Energy Risk Management Policy as it may apply to surplus electricity purchases resulting from the City’s participation in the ZWED contract, due to the small size of the ZWED contract and the City’s need for the output to comply with its Senate Bill 1383 procurement requirement; and Item 5 Item 5 Staff Report        Item 5: Staff Report Pg. 1  Packet Pg. 34 of 318  5. Approve the allocation of the ZWED contract’s cost between the Utilities Department and the Public Works Department such that Utilities is responsible for the share of the cost representing the value of the generic renewable energy output of the project, while Public Works is responsible for the remaining cost, reflecting the project’s value in satisfying the City’s Senate Bill (SB) 1383 compliance requirements. EXECUTIVE SUMMARY In response to California's ambitious SB 1383 regulations to reduce methane emissions by diverting organic waste from landfills, Palo Alto engaged with the City of Santa Clara in a joint procurement effort led by the Northern California Power Agency (NCPA) for the purchase of renewable energy from an anaerobic digester biogas project. The two cities ultimately selected the Zero Waste Energy Development Company (ZWED) to provide renewable energy derived from a 1.6 megawatt (MW) anaerobic digester facility in San Jose, the world's largest of its kind. The facility, operational since 2015, boasts a capacity of processing up to 90,000 tons of organic waste annually. This is the same facility that processes Palo Alto’s curbside collected compostable materials. The 10-year Power Purchase Agreement (PPA) with ZWED commits Palo Alto to a cost of $185 per megawatt-hour (MWh), escalating at up to 2% annually. While this premium price reflects the scarcity of SB 1383-compliant electricity generators in the state, the agreement incorporates a crucial provision allowing termination in the event the facility's output no longer aligns with SB 1383 requirements. The project's impact on Palo Alto's electric portfolio is relatively modest, contributing approximately 1,330 MWh annually, constituting 0.16% of the City’s 2022 retail electricity sales. While the project enhances the city's renewable energy portfolio and diversifies resources, Palo Alto is already on track to meet state Renewable Portfolio Standards (RPS) targets independently. To fairly allocate costs, the contract cost is to be split between the Public Works and Utilities Departments. Utilities will shoulder expenses corresponding to the market value of renewable electricity products, estimated at $90 per MWh over the contract's duration. Public Works will assume the remaining costs, reflecting the premium paid for the contract's SB 1383 compliance value. Based on the facility’s expected level of output, the average annual cost of the contract is estimated to be $270,000 (with $120,000 being paid by Utilities and $150,000 being paid by Public Works), although this amount could be lower or higher (up to $568,000 per year total) depending on the facility’s actual energy deliveries to the City. BACKGROUND In September 2016, Governor Brown signed SB 1383 into law, which set methane emissions reduction targets for California in a statewide effort to reduce the emissions of short-lived climate pollutants. Landfills are the third largest source of methane in California and are responsible for 20 percent of the state’s methane emissions. When organic waste such as food Item 5 Item 5 Staff Report        Item 5: Staff Report Pg. 2  Packet Pg. 35 of 318  scraps, yard trimmings, and paper products are disposed in a landfill, they decompose in the absence of oxygen (i.e., anaerobically) and create methane, a powerful greenhouse gas. SB 1383 regulations aim to reduce methane emissions by keeping organic waste out of landfills. •Compost •Mulch •Renewable energy (transportation fuel, heat, or electricity) from anaerobic digestion •Electricity from biomass conversion 1 ANALYSIS •5,360 tons of mulch; •3,108 tons of compost; 1 Staff Report 13547: “Adoption of an Ordinance Amending Existing Palo Alto Municipal Code Chapter 5.20, Collection, Removal and Disposal of Refuse, and Adding Chapter 5.40, Edible Food Recovery, to Comply with Senate Bill 1383 (Short-Lived Climate Pollutants Reduction Strategy); Finding of Exemption from CEQA Review; Adoption of a Resolution Amending the Administrative Penalty Schedule to add the SB 1383 Requirements; and Review of Other Requirements Related to Senate Bill 1383.” https://www.cityofpaloalto.org/files/assets/public/v/7/agendas-minutes-reports/agendas-minutes/city-council- agendas-minutes/2021/11-november/20211101pccs-amended.pdf Item 5 Item 5 Staff Report        Item 5: Staff Report Pg. 3  Packet Pg. 36 of 318  •1,297 MWh of electricity derived from renewable gas; •3,484 MWh of electricity derived from biomass conversion; or •112,560 diesel gallon equivalents of renewable gas in the form of transportation fuel. The required volumes of compost and mulch would far exceed the City’s need for such material. Staff also concluded that transportation fuel from renewable gas is very expensive and difficult to procure, so staff focused on the procurement of electricity from renewable gas (i.e., anaerobic digestion) or biomass conversion as the most efficient and economical methods of compliance with the SB 1383 regulations. However, given that the City’s procurement requirement for such electricity is relatively small (compared to the output of a typical anaerobic digester or biomass generator), staff worked with the City of Santa Clara (which has a procurement requirement roughly twice as large as Palo Alto’s, and like the City also operates its own municipal electric utility) on a joint procurement effort. In April 2022, the Northern California Power Agency (NCPA)2 issued a Request for Proposals (RFP) on behalf of the Cities of Palo Alto and Santa Clara for electricity supply from a renewable energy generator that would satisfy the SB 1383 procurement requirements of the two cities. Staff from the two cities agreed to split the output of the eventual project in proportion to their populations, with Palo Alto receiving one-third of the total output and Santa Clara receiving the rest. ZWED Contract Summary In response to its RFP, NCPA received two proposals; however only one was deemed responsive, from the Zero Waste Energy Development Company (ZWED). The ZWED proposal is for the output of a 1.6 MW generator that uses renewable gas produced by a dry fermentation anaerobic digester facility located in San Jose. The facility can process up to 90,000 tons per year of organic waste, making it the largest such anaerobic digester in the world. The ZWED project’s total annual production is estimated to be approximately 4,000 MWh (net of on-site usage by the facility), although this amount is dependent on the availability of feedstock and so can vary significantly from year to year. The total spending authority requested by staff ($5.7 million over 10 years) is based on an estimate of the maximum output volume the ZWED facility could feasibly produce, which NCPA would have to purchase on Palo Alto’s and Santa Clara’s behalf (about 8,000 MWh per year). The expected actual level of the facility’s output is a little less than half this volume, so the total expected cost of this contract is about $2.7 million. 2 NCPA is a not-for-profit Joint Powers Agency whose membership includes municipalities, a rural electric cooperative, and other publicly owned entities, including the City of Palo Alto and the City of Santa Clara. The mission of NCPA is to provide members cost effective wholesale power, energy-related services, and advocacy on behalf of public power consumers through joint action. Item 5 Item 5 Staff Report        Item 5: Staff Report Pg. 4  Packet Pg. 37 of 318  The facility began commercial operations in 2015, and it is currently under contract with PG&E. The facility’s output qualifies as Renewable Portfolio Standard (RPS)-eligible, and the City will receive Portfolio Content Category (PCC) 1 (or “Bucket 1”) Renewable Energy Credits (RECs) as well as Resource Adequacy (RA) capacity along with the actual electricity from the project. The ZWED PPA has a contract term of 10 years and a contract price of $185 per MWh (escalating at up to 2% per year). This contract price is quite high compared to prices for typical renewable energy generators, with this premium reflecting the fact that it is one of the only electric generators in the state whose output satisfies SB 1383’s procurement requirements. Item 5 Item 5 Staff Report        Item 5: Staff Report Pg. 5  Packet Pg. 38 of 318  Electric Portfolio Impact 3 over the duration of the 10-year contract – while Public Works will be allocated the remaining costs. The Public Works share of the total cost (estimated at 56% of the total over the contract term, a maximum of $367,477 annually) reflects the price premium the City will be paying for the contract’s SB 1383 compliance value. NEXT STEPS 3 This electric output value estimate is based on the assumption that over the 10-year contract term the value of the “baseload” electricity will be $55 per MWh, the value of the Bucket 1 RECs will be $25 per MWh, and the value of the RA capacity will be $10 per MWh. Item 5 Item 5 Staff Report        Item 5: Staff Report Pg. 6  Packet Pg. 39 of 318  agreement without penalty if ZWED has not terminated its PG&E contract and begun delivering energy to NCPA within 18 months of the PPA’s execution. FISCAL/RESOURCE IMPACT 4, Council approved additional funding in the Refuse Fund for this purpose, and therefore additional funding is not necessary in FY 2025. Table 1 below is a summary of the annual maximum and the expected contract costs. Table 1: ZWED Project Annual Output & Cost Summary Annual Output (MWh) Annual Cost ($) Utilities Cost Share ($) Public Works Cost Share ($) Maximum Output 2,803 $619,765 $252,288 $367,477 Expected Output 1,332 $294,389 $119,837 $174,552 POLICY IMPACT STAKEHOLDER ENGAGEMENT 4 City of Palo Alto Fiscal Year 2023 Adopted Operating Budget: https://www.cityofpaloalto.org/files/assets/public/v/1/administrative-services/city-budgets/fy-2023-city- budget/adopted-fy23/operating-budget_final-4.pdf Item 5 Item 5 Staff Report        Item 5: Staff Report Pg. 7  Packet Pg. 40 of 318  visits, social media posts, E-news, newsletter articles, and updating older education pieces such as signs and posters and adding translations. Additionally, a new webpage with SB 1383 information was created and added to the Zero Waste website at www.cityofpaloalto.org/sb1383regulations. ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Item 5 Item 5 Staff Report        Item 5: Staff Report Pg. 8  Packet Pg. 41 of 318  Attachment A * NOT YET APPROVED * 6056817 1 Resolution No. _________ Resolution of the Council of the City of Palo Alto Authorizing the City Manager or Their Designee to Execute a Third Phase Agreement with Northern California Power Agency for the Purchase of up to 2,800 Megawatt-Hours per Year of Biogas Energy from Zero Waste Energy Development Company, LLC over a Term of up to 10 Years for a Total Not to Exceed Amount of $5.7 Million, and to Execute All Documents Necessary to Administer the Third Phase Agreement, and Approving the Allocation of the Contract’s Cost between the Utilities Department and the Public Works Department R E C I T A L S A. In September 2016, Governor Brown signed SB 1383 into law, establishing methane emissions reduction targets for California in a statewide effort to reduce the emissions of short-lived climate pollutants. B. SB 1383 established targets to achieve a 50 percent reduction in the level of statewide disposal of organic waste by 2020, a 75 percent reduction in the level of statewide disposal of organic waste by 2025, and a target of at least 20 percent of currently disposed edible food to be recovered for human consumption by 2025. C. The SB 1383 regulations require that jurisdictions purchase 0.08 tons of recovered organic waste products per capita per year. Based on Palo Alto’s population, this requirement translates to an annual purchase of the equivalent of 5,360 pounds of recovered organic waste products, in the form of mulch, compost, electricity derived from renewable gas, electricity derived from biomass conversion, or renewable gas in the form of transportation fuel. D. City staff determined that procurement of electricity from renewable gas or biomass conversion are the most efficient and economical methods of compliance with the SB 1383 regulations, and decided to work with staff from the City of Santa Clara on a joint procurement effort. E. The Cities of Palo Alto and Santa Clara are both members of the Northern California Power Agency (NCPA), which in April 2022 issued a Request for Proposals (RFP) on behalf of the two cities for electricity supply from a renewable energy generator that would satisfy the SB 1383 procurement requirements of the two cities. Through this RFP the cities selected a proposal from the Zero Waste Energy Development Company, LLC (ZWED) for the output of a 1.6 megawatt (MW) generator that uses renewable gas produced by a dry fermentation anaerobic digester facility located in San Jose. F. To carry out this transaction, NCPA will enter into a Power Purchase Agreement (PPA) with ZWED on behalf of the two cities, while the cities must each execute a Third Phase Item 5 Attachment A - Resolution Approving ZWED Project Third Phase Agreement with NCPA        Item 5: Staff Report Pg. 9  Packet Pg. 42 of 318  Attachment A * NOT YET APPROVED * 6056817 2 Agreement with NCPA, which specifies the rights and obligations of NCPA and the cities regarding governance and administration of the PPA. The Third Phase Agreement also obligates the participating members to pay their assigned contract percentage share of all project costs, including but not limited to administrative services costs, scheduling coordination costs, and all other costs related to the PPA. G. Attorneys from NCPA, Palo Alto, and Santa Clara have reviewed and approved the Power Purchase Agreement between NCPA and ZWED, as well as the Third Phase Agreement for the PPA with ZWED. The NCPA Commission approved both agreements at its November 30, 2023 meeting. The Council of the City of Palo Alto does hereby RESOLVE as follows: SECTION 1. The Council hereby authorizes the City Manager, or their designee, to execute a Third Phase Agreement (Exhibit A) with NCPA to purchase up to 2,800 MWh of renewable energy per year from an anaerobic digester biogas project owned by ZWED, over a period of 10 years, at a total cost not to exceed $5.7 million. SECTION 2. The Council hereby authorizes the City Manager or their designee to execute on behalf of the City all related documents or agreements necessary to administer the Third Phase Agreement that are consistent with the Palo Alto Municipal Code and City Council approved policies, including, but not limited to, collateral assignment agreements; and take any and all actions as are necessary or advisable to implement and administer the Third Phase Agreement. SECTION 3. The Council hereby authorizes the City Manager or their designee to approve and execute amendments to the Third Phase Agreement, as may be required from time to time, so long as the contract price and length of the agreement remain unchanged. SECTION 4. The Council hereby waives the application of the anti-speculation requirement of Section D.1 of the City’s Energy Risk Management Policy as it may apply to surplus electricity purchases resulting from the City’s participation in the ZWED contract, due to the small size of the ZWED contract and the City’s need for the output to comply with its Senate Bill 1383 procurement requirement. SECTION 5. The Council hereby approves the allocation of the ZWED contract’s cost between the Utilities Department and the Public Works Department such that Utilities is responsible for the share of the cost representing the value of the generic renewable energy output of the project, while Public Works is responsible for the remaining cost, reflecting the project’s value in satisfying the City’s Senate Bill (SB) 1383 compliance requirements. Item 5 Attachment A - Resolution Approving ZWED Project Third Phase Agreement with NCPA        Item 5: Staff Report Pg. 10  Packet Pg. 43 of 318  Attachment A * NOT YET APPROVED * 6056817 3 SECTION 6. On December 22, 2011, the City of San Jose approved a special permit and a mitigated negative declaration for the ZWEDC power plant. The City Council’s approval of this Third Phase Agreement does not require any change to the facility or its operations, and there are no substantial changes to the project or new information of substantial importance which will require subsequent or supplemental environmental review under the California Environmental Quality Act (“CEQA”). As such, the City Council’s approval of this Third Phase Agreement does not meet the definition of a project under the CEQA, pursuant to Public Resources Code Section 21065 and CEQA Guidelines 15378(b)(5), because this activity would not result in a reasonably foreseeable direct or indirect change in the environment. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ___________________________ ___________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ___________________________ ___________________________ Assistant City Attorney City Manager ___________________________ Director of Utilities ___________________________ Director of Administrative Services Item 5 Attachment A - Resolution Approving ZWED Project Third Phase Agreement with NCPA        Item 5: Staff Report Pg. 11  Packet Pg. 44 of 318  THIRD PHASE AGREEMENT FOR POWER PURCHASE AGREEMENT WITH ZERO WASTE ENERGY DEVELOPMENT COMPANY, LLC Item 5 Attachment B - Exhibit A to Resolution Approving ZWED Project Third Phase Agreement with NCPA        Item 5: Staff Report Pg. 12  Packet Pg. 45 of 318  i THIRD PHASE AGREEMENT FOR PPA WITH ZWEDC TABLE OF CONTENTS Section 1. Definitions .................................................................................................... 3 Section 2. Purpose ......................................................................................................... 9 Section 3. Sale and Purchase of Product .................................................................... 9 Section 4. Billing and Payments ................................................................................ 10 Section 5. Security Deposit Administration............................................................. 13 Section 6. Cooperation and Further Assurances ..................................................... 18 Section 7. Participant Covenants and Defaults ....................................................... 18 Section 8. Administration of Agreement ................................................................. 22 Section 9. Transfer of Rights by Participants ........................................................... 23 Section 10. Term and Termination .............................................................................. 24 Section 11. Withdrawal of Participants ...................................................................... 24 Section 12. Settlement of Disputes and Arbitration ................................................. 25 Section 13. Miscellaneous ............................................................................................. 25 EXHIBIT A. Project Participation Percenages ............................................................ 35 EXHIBIT B. PPA .............................................................................................................. 36 Item 5 Attachment B - Exhibit A to Resolution Approving ZWED Project Third Phase Agreement with NCPA        Item 5: Staff Report Pg. 13  Packet Pg. 46 of 318  1 THIRD PHASE AGREEMENT FOR PPA WITH ZWEDC This THIRD PHASE AGREEMENT (“this Agreement”) is dated as of ______________, 20__ by and among the Northern California Power Agency, a joint powers agency of the State of California (“NCPA”), and the signatories to this Agreement other than NCPA (“Participants”). NCPA and the Participants are referred to herein individually as a “Party” and collectively as the “Parties”. RECITALS A. NCPA has heretofore been duly established as a public agency pursuant to the Joint Exercise of Powers Act of the Government Code of the State of California and, among other things, is authorized to acquire, construct, finance, and operate buildings, works, facilities, and improvements for the generation and transmission of electric capacity and energy for resale. B. Each of the Participants is a signatory to the Joint Powers Agreement which created NCPA and therefore is a Member. C. Each of the Participants to this Agreement have executed the Amended and Restated Facilities Agreement, dated October 1, 2014, which establishes the framework under which Project Agreements are created for the development, design, financing, construction, and operation of specific NCPA Projects. D. The Participants desire NCPA to enter into a Power Purchase Agreement (“PPA”) with Zero Waste Energy Development Company, LLD (“ZWEDC” or “Seller”), to Item 5 Attachment B - Exhibit A to Resolution Approving ZWED Project Third Phase Agreement with NCPA        Item 5: Staff Report Pg. 14  Packet Pg. 47 of 318  2 THIRD PHASE AGREEMENT FOR PPA WITH ZWEDC purchase electric capacity and energy produced by the Project for the benefit of the Participants’ customers. E. Each Participant is authorized by its Constitutive Documents to obtain electric capacity and energy for its present or future requirements, through contracts with NCPA or otherwise. F. To enable NCPA to enter into the PPA on behalf of the Participants, pursuant to the terms and conditions of the Amended and Restated Facilities Agreement, NCPA and the Participants wish to enter into this Agreement to provide all means necessary for NCPA to fulfill obligations incurred on behalf of NCPA and the Participants pursuant to the PPA, and to enable and obligate the Participants to take delivery of and pay for such electric capacity and energy and to pay NCPA for all costs it incurs for undertaking the foregoing activities. G. Upon full execution of this Agreement, NCPA will enter into the PPA on behalf of the Participants, and such PPA shall be deemed a NCPA Project by the Commission. H. Each of the Parties intends to observe the provisions of this Agreement in good faith and shall cooperate with all other Parties in order to achieve the full benefits of joint action. I. The Parties desire to equitably allocate costs of NCPA’s provision of services under this Agreement among the Participants. Item 5 Attachment B - Exhibit A to Resolution Approving ZWED Project Third Phase Agreement with NCPA        Item 5: Staff Report Pg. 15  Packet Pg. 48 of 318  3 THIRD PHASE AGREEMENT FOR PPA WITH ZWEDC J. The Participants further desire, insofar as possible, to insulate other Members who are not Participants, from risks inherent in the services and transactions undertaken on behalf of the Participants pursuant to this Agreement. NOW, THEREFORE, the Parties agree as follows: Section 1. Definitions. 1.1 Definitions. Whenever used in this Agreement (including the Recitals hereto), the following terms shall have the following respective meanings, provided, capitalized terms used in this Agreement (including the Recitals hereto) that are not defined in Section 1 of this Agreement shall have the meaning indicated in Section 1 of the Power Management and Administrative Services Agreement, dated October 1, 2014: 1.1.1 “Administrative Services Costs” means that portion of the NCPA administrative, general and occupancy costs and expenses, including those costs and expenses associated with the operations, direction and supervision of the general affairs and activities of NCPA, general management, treasury operations, accounting, budgeting, payroll, human resources, information technology, facilities management, salaries and wages (including retirement benefits) of employees, facility operation and maintenance costs, taxes and payments in lieu of taxes (if any), insurance premiums, fees for legal, engineering, financial and other services, power management services, general settlement and billing services and general risk management costs, that are charged directly or apportioned to the provision of services under this Agreement. Item 5 Attachment B - Exhibit A to Resolution Approving ZWED Project Third Phase Agreement with NCPA        Item 5: Staff Report Pg. 16  Packet Pg. 49 of 318  4 THIRD PHASE AGREEMENT FOR PPA WITH ZWEDC Administrative Services Costs as separately defined herein and used in the context of this Agreement is different and distinct from the term Administrative Services Costs as defined in Section 1 of the Power Management and Administrative Services Agreement. 1.1.2 “Agreement” means this Third Phase Agreement, including all Exhibits attached hereto. 1.1.3 “CAISO” means the California Independent System Operator Corporation, or its functional successor. 1.1.4 “CAISO Tariff” means the duly authorized tariff, rules, protocols and other requirements of the ISO, as amended from time to time. 1.1.5 "Capacity Rights” is defined in the PPA, Section 1.1; “Capacity Rights” and that definition is hereby incorporated by reference. 1.1.6 “Constitutive Documents” means, with respect to NCPA, the Joint Powers Agreement and any resolutions or bylaws adopted thereunder with respect to the governance of NCPA, and with respect to each Participant, the California Government Code and other statutory provisions applicable to such Participant, any applicable agreements, charters, contracts, or other documents concerning the formation, operation or decision making of such Participant, including, if applicable, its city charter, and any codes, ordinances, bylaws, and resolutions adopted by such Participant’s governing body. Item 5 Attachment B - Exhibit A to Resolution Approving ZWED Project Third Phase Agreement with NCPA        Item 5: Staff Report Pg. 17  Packet Pg. 50 of 318  5 THIRD PHASE AGREEMENT FOR PPA WITH ZWEDC 1.1.7 “Defaulting Participant” has the meaning set forth in Section 7.2. 1.1.8 “Energy” means electric energy expressed in units of kWh or MWh. 1.1.9 “Environmental Attributes" is defined in the PPA, Section 1.1; “Environmental Attributes” and that definition is hereby incorporated by reference. 1.1.10 “Event of Default” has the meaning set forth in Section 7.2. 1.1.11 RESERVED. 1.1.12 RESERVED. 1.1.13 “General Operating Reserve” means the NCPA General Operating Reserve created through resolution of the Commission, as the same may be amended from time to time. 1.1.14 “KWh” means kilowatt hour. 1.1.15 “MW” means megawatt. 1.1.16 “MWh” means megawatt hour. 1.1.17 “NCPA” has the meaning set forth in the recitals hereto. 1.1.18 “Participant” has the meaning set forth in the recitals of this Agreement. 1.1.19 “Power Management and Administrative Services Agreement” means the NCPA Power Management and Administrative Services Agreement, dated Item 5 Attachment B - Exhibit A to Resolution Approving ZWED Project Third Phase Agreement with NCPA        Item 5: Staff Report Pg. 18  Packet Pg. 51 of 318  6 THIRD PHASE AGREEMENT FOR PPA WITH ZWEDC as of October 1, 2014 between NCPA and the Members who are signatories to that agreement by which NCPA provides Power Management and Administrative Services. 1.1.20 “Product” is defined in the PPA, Section 1.1; “Products” and that definition is hereby incorporated by reference. 1.1.21 “Project” or “PPA” means the Power Purchase Agreement, dated as of ____________, 20__ between NCPA and Seller, under which NCPA, on behalf of the Participants, purchases Product from the Zero Waste Energy Development Company, LLC Facility located in San Jose, California, consisting of one existing renewable biomass fuel generating plant. Upon final execution of the PPA, the Project shall be deemed a NCPA Project in accordance with the Amended and Restated Facilities Agreement. The PPA has been attached to this Agreement as Exhibit B. 1.1.22 “Project Costs” means all costs charged to and paid by NCPA pursuant to the PPA. 1.1.23 “Party” or “Parties” has the meaning set forth in the preamble hereto; provided that “Third Parties” are entities that are not Party to this Agreement. 1.1.24 “REC” or “Renewable Energy Certificate” means a certificate of renewable energy generation from units that register in the WREGIS system, or other commonly accepted renewable energy generation tracking system or program, which can be used to verify compliance with state and provincial requirements such as RPS. 1.1.25 RESERVED. Item 5 Attachment B - Exhibit A to Resolution Approving ZWED Project Third Phase Agreement with NCPA        Item 5: Staff Report Pg. 19  Packet Pg. 52 of 318  7 THIRD PHASE AGREEMENT FOR PPA WITH ZWEDC 1.1.26 RESERVED. 1.1.27 “Revenue” means , with respect to each Participant, all income, rents, rates, fees, charges, and other moneys derived by the Participant from the ownership or operation of its Electric System, including, without limiting the generality of the foregoing: (a) all income, rents, rates, fees, charges or other moneys derived from the sale, furnishing and supplying of electric capacity and energy and other services, facilities, and commodities sold, furnished, or supplied through the facilities of its Electric System; (b) the earnings on and income derived from the investment of such income, rents, rates, fees, charges or other moneys to the extent that the use of such earnings and income is limited by or pursuant to law to its Electric System; (c) the proceeds derived by the Participant directly or indirectly from the sale, lease or other disposition of all or a part of the Electric System; and (d) the proceeds derived by Participant directly or indirectly from the consignment and sale of freely allocated greenhouse gas compliance instruments into periodic auctions administered by the State of California under the California Cap-and-Trade Program, provided that such proceeds are a permitted use of auction proceeds, but the term Revenues shall not include (i) customers' deposits or any other deposits subject to refund until such deposits have become the property of the Participant or (ii) contributions from customers for the payment of costs of construction of facilities to serve them. Item 5 Attachment B - Exhibit A to Resolution Approving ZWED Project Third Phase Agreement with NCPA        Item 5: Staff Report Pg. 20  Packet Pg. 53 of 318  8 THIRD PHASE AGREEMENT FOR PPA WITH ZWEDC 1.1.28 “RPS” or “Renewable Portfolio Standard Program” means the State of California Renewable Portfolio Standard Program, as codified at California Public Utilities Code Section 399.11, et seq. 1.1.29 “Scheduling Protocols” means the applicable provisions of the Amended and Restated Scheduling Coordination Program Agreement, and any other contractual or other arrangements between NCPA and the Participants concerning the scheduling, delivery and metering of the PPA. 1.1.30 “Security Deposit” means the account established by NCPA and funded by the Participants in accordance with Section 5, the funds of which are available for use by NCPA in accordance with the terms and conditions hereof. 1.1.31 “Seller” means Zero Waste Energy Development Company, LLC, as set forth in recital D of this Agreement, or as otherwise set forth in the PPA. 1.1.32 “Term” has the meaning set forth in Section 10. 1.1.33 “Third Party” means an entity (including a Member) that is not Party to this Agreement 1.1.34 “WREGIS” means Western Renewable Energy Generation Information System, or its functional successor. 1.2 Rules of Interpretation. As used in this Agreement (including the Recitals hereto), unless in any such case the context requires otherwise: The terms “herein,” “hereto,” “herewith” and “hereof” are references to this Agreement taken as a whole and Item 5 Attachment B - Exhibit A to Resolution Approving ZWED Project Third Phase Agreement with NCPA        Item 5: Staff Report Pg. 21  Packet Pg. 54 of 318  9 THIRD PHASE AGREEMENT FOR PPA WITH ZWEDC not to any particular provision; the term “include,” “includes” or “including” shall mean “including, for example and without limitation;” and references to a “Section,” “subsection,” “clause,” “Appendix”, “Schedule”, or “Exhibit” shall mean a Section, subsection, clause, Appendix, Schedule or Exhibit of this Agreement, as the case may be. All references to a given agreement, instrument, tariff or other document, or law, regulation or ordinance shall be a reference to that agreement, instrument, tariff or other document, or law, regulation or ordinance as such now exists and as may be amended from time to time, or its successor. A reference to a “person” includes any individual, partnership, firm, company, corporation, joint venture, trust, association, organization or other entity, in each case whether or not having a separate legal personality and includes its successors and permitted assigns. A reference to a “day” shall mean a Calendar Day unless otherwise specified. The singular shall include the plural and the masculine shall include the feminine, and vice versa. Section 2. Purpose. The purpose of this Agreement is to: (i) set forth the terms and conditions under which NCPA shall enter into the PPA on behalf of the Participants, (ii) authorize NCPA, acting on behalf of the Participants, to engage in all activities related to that basic purpose, and (iii) specify the rights and obligations of NCPA and the Participants with respect to the PPA. Section 3. Sale and Purchase of Product. By executing this Agreement, each Participant acknowledges and agrees to be bound by the terms and conditions of the Item 5 Attachment B - Exhibit A to Resolution Approving ZWED Project Third Phase Agreement with NCPA        Item 5: Staff Report Pg. 22  Packet Pg. 55 of 318  10 THIRD PHASE AGREEMENT FOR PPA WITH ZWEDC Agreement, and that the Agreement is written as a “take-or-pay” agreement. Any Product delivered to NCPA under the PPA shall be delivered to each Participant in proportion to such Participant’s Project Participation Percentage as set forth in Exhibit A, and each Participant shall accept and pay for its respective percentage of such Product. To the extent a Participant is unable to accept such deliveries in full, NCPA shall dispose of such surplus in its sole discretion, in such a manner to attempt to maximize Participant value and that Participant shall reimburse to NCPA any costs incurred by NCPA in doing so. Notwithstanding the above, NCPA may allocate Product procured through the PPA among the Participants in such percentages as NCPA may, in its reasonable discretion, determine are necessary, desirable, or appropriate, in order to accommodate Participant transfer rights pursuant to Section 9. 3.1 Scheduling. Product delivered from Seller shall be scheduled for and to the Participants in accordance with Scheduling Protocols, and the terms and conditions of the PPA. Section 4. Billing and Payments 4.1 Participant Payment Obligations. Each Participant agrees to pay to NCPA each month its respective portion of the Project Costs, Administrative Services Costs, scheduling coordination costs, and all other costs for services provided in accordance with this Agreement and the Amended and Restated Facilities Agreement. In addition to the aforementioned monthly payment obligations, each Participant is obligated to fund: (i) Item 5 Attachment B - Exhibit A to Resolution Approving ZWED Project Third Phase Agreement with NCPA        Item 5: Staff Report Pg. 23  Packet Pg. 56 of 318  11 THIRD PHASE AGREEMENT FOR PPA WITH ZWEDC any and all required Security Deposits calculated in accordance with Section 5, and (ii) any working capital requirements for the Project maintained by NCPA as determined, collected and set forth in the Annual Budget. 4.2 Invoices. NCPA will issue an invoice to each Participant for its share of Project Costs, Administrative Services Costs, scheduling coordination costs, and all other costs for services provided in accordance with this Agreement and the Amended and Restated Facilities Agreement. Such invoice may be either the All Resources Bill or separate special invoice, as determined by NCPA. At NCPA’s discretion, invoices may be issued to Participants using electronic media or physical distribution. 4.3 Payment of Invoices. All invoices delivered by NCPA (including the All Resources Bill) are due and payable thirty (30) Calendar Days after the date thereof; provided, however, that any amount due on a day other than a Business Day may be paid on the following Business Day. 4.4 Late Payments. Any amount due and not paid by a Participant in accordance with Section 4.3 shall be considered late and bear interest computed on a daily basis until paid at the lesser of (i) the per annum prime rate (or reference rate) of the Bank of America NT&SA then in effect, plus two percent (2%) or (ii) the maximum rate permitted by law. 4.5 Billing Disputes. A Participant may dispute the accuracy of any invoice issued by NCPA under this Agreement by submitting a written dispute to NCPA, within thirty (30) Calendar Days after the date of such invoice; nonetheless the Participant shall Item 5 Attachment B - Exhibit A to Resolution Approving ZWED Project Third Phase Agreement with NCPA        Item 5: Staff Report Pg. 24  Packet Pg. 57 of 318  12 THIRD PHASE AGREEMENT FOR PPA WITH ZWEDC pay the full amount billed when due. If a Participant does not timely question or dispute the accuracy of any invoice in writing, then the invoice shall be deemed to be correct. Upon review of a submitted dispute, if an invoice is determined by NCPA to be incorrect, then NCPA shall issue a corrected invoice and refund any amounts that may be due to the Participant. If NCPA and the Participant fail to agree on the accuracy of an invoice within thirty (30) Calendar Days after the Participant has disputed it, then the General Manager shall promptly submit the dispute to the Commission for resolution. If the Commission and the Participant fail to agree on the accuracy of a disputed invoice within sixty (60) Calendar Days after its submission to the Commission, then the dispute may then be resolved under the mediation and arbitration procedures set forth in Section 12 of this Agreement; provided, however, that prior to resorting to either mediation or arbitration proceedings, the full amount of the disputed invoice must be paid by the Participant. 4.6 Billing/Settlement Data and Examination of Books and Records. 4.6.1 Settlement Data. NCPA shall make billing and settlement data available to the Participants in the All Resources Bill, or other invoice, or upon request. NCPA may also, at its sole discretion, make billing and settlement support information available to Participants using electronic media (e.g. electronic data portal). Procedures and formats for the provision of such electronic data submission may be established by the Commission from time to time. Without limiting the generality of the foregoing, NCPA may, in its reasonable discretion, require the Participants to Item 5 Attachment B - Exhibit A to Resolution Approving ZWED Project Third Phase Agreement with NCPA        Item 5: Staff Report Pg. 25  Packet Pg. 58 of 318  13 THIRD PHASE AGREEMENT FOR PPA WITH ZWEDC execute a non-disclosure agreement prior to providing access to the NCPA electronic data portal. 4.6.2 Examination of Books and Records. Any Participant to this Agreement shall have the right to examine the books and records created and maintained by NCPA pursuant to this Agreement at any reasonable, mutually agreed upon time. Section 5. Security Deposit Administration 5.1 Security Deposit Requirements. Each Participant agrees that any funds deposited at NCPA to satisfy Participant’s Security Deposit requirements pursuant to this Agreement shall be irrevocably committed and held by NCPA in the General Operating Reserve, and that such funds may be used by NCPA in accordance with Section 5.1.3. Each Participant’s Security Deposit will be accounted separately from and in addition to any other security accounts or deposits maintained pursuant to any other agreement between NCPA and the Participant, or any other such security account or deposits required of Members. In connection with fulfilling the Security Deposit requirements of this Agreement, Participant may elect to use its uncommitted funds held in the General Operating Reserve to satisfy in whole or in part its Security Deposit required under Section 5. If Participant chooses to satisfy in whole or in part its security requirements using its uncommitted funds held in the General Operating Reserve, then Participant is required to execute and deliver to NCPA an Irrevocable Letter of Direction, directing Item 5 Attachment B - Exhibit A to Resolution Approving ZWED Project Third Phase Agreement with NCPA        Item 5: Staff Report Pg. 26  Packet Pg. 59 of 318  14 THIRD PHASE AGREEMENT FOR PPA WITH ZWEDC NCPA to utilize Participant’s uncommitted General Operating Reserve funds for such purposes, and the designated funds will thereafter be irrevocably committed and held by NCPA to satisfy the requirements of this Agreement. 5.1.1 Initial Amounts. Each Participant shall insure that sufficient Security Deposit funds have been deposited with and are held by NCPA equal to no more than the highest three (3) months of estimated Project Costs, as estimated by NCPA. Such Security Deposit requirement may be satisfied by Participant in whole or part either in cash, through irrevocable commitment of its uncommitted funds held in the General Operating Reserve in accordance with Section 5.1, or through a clean, irrevocable letter of credit satisfactory to NCPA’s General Manager. 5.1.2 Subsequent Deposits. Periodically, and at least quarterly, NCPA shall review and revise its estimate of Project Costs for which Participant shall be obligated to pay under this Agreement. Following such review, NCPA shall determine whether each Participant has a sufficient Security Deposit balance at NCPA. To the extent that any Participant’s Security Deposit balance is greater than one hundred and ten percent (110%) of the amount required herein, NCPA shall credit such amount as soon as practicable to the Participant’s next following All Resources Bill, or by separate special invoice. To the extent that any Participant’s Security Deposit balance is less than ninety percent (90%) of the amount required herein, NCPA shall add such amount as soon as practicable to such Participant’s next All Resources Bill, or as necessary, to a Item 5 Attachment B - Exhibit A to Resolution Approving ZWED Project Third Phase Agreement with NCPA        Item 5: Staff Report Pg. 27  Packet Pg. 60 of 318  15 THIRD PHASE AGREEMENT FOR PPA WITH ZWEDC special invoice to be paid by Participant upon receipt. Credits or additions shall not be made to Participants who satisfy these Security Deposit requirements in whole through the use of a letter of credit; provided, that the amount of the letter of credit shall be adjusted, as required from time to time, in a like manner to assure an amount equal to the highest three (3) months of estimated Project Costs is available to NCPA. 5.1.3 Use of Security Deposit Funds. NCPA may use any and all Security Deposit funds held by NCPA (or utilize a letter of credit provided in lieu thereof) to pay any costs it incurs hereunder, including making payments to Seller, without regard to any individual Participant’s Security Deposit balance or proportionate share of Project Costs, and irrespective of whether NCPA has issued an All Resources Bill or special invoice for such costs to the Participants or whether a Participant has made timely payments of All Resources Bills or special invoices. Should Participant have satisfied its Security Deposit requirements in whole or part through a letter of credit, NCPA may draw on such letter of credit to satisfy Participant’s obligations hereunder at NCPA’s sole discretion. Notwithstanding the foregoing, if any Participant fails to pay any costs incurred by NCPA pursuant to this Agreement, NCPA shall first use that non-paying Participant’s Security Deposit and shall not use any other Participants’ Security Deposit until such non-paying Participant’s Security Deposit has been exhausted. Item 5 Attachment B - Exhibit A to Resolution Approving ZWED Project Third Phase Agreement with NCPA        Item 5: Staff Report Pg. 28  Packet Pg. 61 of 318  16 THIRD PHASE AGREEMENT FOR PPA WITH ZWEDC 5.1.4 Accounting. If Security Deposit funds or a letter of credit are used by NCPA to pay any costs it incurs hereunder as described in Section 5.1.3, then NCPA will maintain a detailed accounting of each Participant’s shares of funds withdrawn, and upon the collection of all or a part of such withdrawn funds, NCPA will credit back to each non-defaulting Participant the funds collected in proportion to such non- defaulting Participant’s share of funds initially withdrawn. 5.1.5 Emergency Additions. In the event that funds are withdrawn pursuant to Section 5.1.3, or if the Security Deposit held by NCPA is otherwise insufficient to allow for NCPA to pay any invoice, demand, request for further assurances by Seller, or claims, NCPA shall notify all Participants of the deficiency. In conjunction with such notice, NCPA shall send a special or emergency assessment invoice to the Participant or Participants that caused or are otherwise responsible for the deficiency. Each Participant of such an invoice shall pay to NCPA such assessment when and if assessed by NCPA within two (2) Business Days of the invoice date of the assessment, or shall consent to and direct NCPA to draw on any existing letter of credit Participant has established for such purposes. In the event that the Participant or Participants that caused or are otherwise responsible for the deficiency cannot, does not or will not pay to NCPA the special or emergency assessment within two (2) Business Days after the invoice date, NCPA shall immediately submit a special or emergency invoice to all remaining Participants, and such remaining Participants shall Item 5 Attachment B - Exhibit A to Resolution Approving ZWED Project Third Phase Agreement with NCPA        Item 5: Staff Report Pg. 29  Packet Pg. 62 of 318  17 THIRD PHASE AGREEMENT FOR PPA WITH ZWEDC pay to NCPA such assessment within two (2) Business Days after the invoice date of the assessment, or shall consent to and direct NCPA to draw on any existing letter of credit that Participant has established for such purposes. 5.1.6 Security Deposit Interest. NCPA shall maintain a detailed accounting of each Participant’s Security Deposits, and withdrawals of such funds, held by NCPA. Security Deposits held by NCPA shall be invested by NCPA in accordance with the General Operating Reserve policies and investment policies adopted by the NCPA Commission. Interest earned on the Security Deposit funds shall be proportionately credited to the Participants in accordance with their weighted average balances held therein. Any Security Deposit losses caused by early termination of investments shall be allocated among the Participants in accordance with the General Operating Reserve provisions and guidelines approved by the Commission, as the same may be amended from time to time; provided, however, to the extent that either the General Operating Reserve provisions and guidelines do not apply or the Security Deposit is not adequate to cover the losses, then such losses shall be allocated among the Participants in accordance with their proportionate Security Deposit balances. 5.1.7 Return of Funds. Upon termination or a permitted withdrawal of a Participant in accordance with this Agreement, the affected Participant may apply to NCPA for the return of their share of Security Deposit funds ninety (90) days after the Item 5 Attachment B - Exhibit A to Resolution Approving ZWED Project Third Phase Agreement with NCPA        Item 5: Staff Report Pg. 30  Packet Pg. 63 of 318  18 THIRD PHASE AGREEMENT FOR PPA WITH ZWEDC effective date of such termination or withdrawal. However, NCPA shall, in its sole but reasonable discretion, as determined by the NCPA General Manager, estimate the then outstanding liabilities of the Participant, including any estimated contingent liabilities and shall retain all such funds, if any, until all such liabilities have been fully paid or otherwise satisfied in full. After all such liabilities have been satisfied in full, as determined by NCPA’s General Manager, any remaining balance of the Participant’s share of the Security Deposit will be refunded to the Participant within sixty (60) days thereafter. Section 6. Cooperation and Further Assurances. Each of the Parties agree to provide such information, execute and deliver any instruments and documents and to take such other actions as may be necessary or reasonably requested by any other Party which are consistent with the provisions of this Agreement and which do not involve the assumption of obligations other than those provided for in this Agreement, in order to give full effect to this Agreement and to carry out the intent of this Agreement. The Parties agree to cooperate and act in good faith in connection with obtaining any credit support required in order to satisfy the requirements of this Agreement. Section 7. Participant Covenants and Defaults 7.1 Each Participant covenants and agrees: (i) to make payments to NCPA, from its Electric System Revenues, of its obligations under this Agreement as an operating expense of its Electric System; (ii) to fix the rates and charges for services provided by its Item 5 Attachment B - Exhibit A to Resolution Approving ZWED Project Third Phase Agreement with NCPA        Item 5: Staff Report Pg. 31  Packet Pg. 64 of 318  19 THIRD PHASE AGREEMENT FOR PPA WITH ZWEDC Electric System, so that it will at all times have sufficient Revenues to meet the obligations of this Agreement, including the payment obligations; (iii) to make all such payments due NCPA under this Agreement whether or not there is an interruption in, interference with, or reduction or suspension of services provided under this Agreement, such payments not being subject to any reduction, whether by offset or otherwise, and regardless of whether any reasonable dispute exists; and (iv) to operate its Electric System, and the business in connection therewith, in accordance with Good Utility Practices. 7.2 Events of Default. An Event of Default under this Agreement shall exist upon the occurrence of any one or more of the following by a Participant (the “Defaulting Participant”): (i) the failure of any Participant to make any payment in full to NCPA when due; (ii) the failure of a Participant to perform any covenant or obligation of this Agreement where such failure is not cured within thirty (30) Calendar Days following receipt of a notice from NCPA demanding cure; provided, that this subsection shall not apply to any failure to make payments specified by subsection 7.2 (i)); (iii) if any representation or warranty of a Participant material to the services provided hereunder shall prove to have been incorrect in any material respect when made and the Participant does not cure the facts underlying such incorrect representation or Item 5 Attachment B - Exhibit A to Resolution Approving ZWED Project Third Phase Agreement with NCPA        Item 5: Staff Report Pg. 32  Packet Pg. 65 of 318  20 THIRD PHASE AGREEMENT FOR PPA WITH ZWEDC warranty so that the representation or warranty becomes true and correct within thirty (30) Calendar Days after the date of receipt of notice from NCPA demanding cure; or (iv) if a Participant is in default or in breach of any of its covenants or obligations under any other agreement with NCPA and such default or breach is not cured within the time periods specified in such agreement. 7.3 Uncontrollable Forces. A Party shall not be considered to be in default in respect of any obligation hereunder if prevented from fulfilling such obligation by reason of Uncontrollable Forces; provided, that in order to be relieved of an Event of Default due to Uncontrollable Forces, a Party affected by an Uncontrollable Force shall: (i) first provide oral notice to the General Manager using telephone communication within two (2) Business Days after the onset of the Uncontrollable Force, and provide subsequent written notice to the General Manager and all other Parties within ten (10) Business Days after the onset of the Uncontrollable Force, describing its nature and extent, the obligations which the Party is unable to fulfill, the anticipated duration of the Uncontrollable Force, and the actions which the Party will undertake so as to remove such disability and be able to fulfill its obligations hereunder; and (ii) use due diligence to place itself in a position to fulfill its obligations hereunder and if unable to fulfill any obligation by reason of an Uncontrollable Force such Party shall exercise due diligence to remove such disability with reasonable dispatch ; Item 5 Attachment B - Exhibit A to Resolution Approving ZWED Project Third Phase Agreement with NCPA        Item 5: Staff Report Pg. 33  Packet Pg. 66 of 318  21 THIRD PHASE AGREEMENT FOR PPA WITH ZWEDC provided, that nothing in this subsection shall require a Party to settle or compromise a labor dispute. 7.4 Cure of an Event of Default. An Event of Default shall be deemed cured only if such default shall be remedied or cured within the time periods specified in Section 7.2 above, as may be applicable, provided, however, upon request of the Defaulting Participant the Commission may waive the default at its sole discretion, where such waiver shall not be unreasonably withheld. 7.5 Remedies in the Event of Uncured Default. Upon the occurrence of an Event of Default which is not cured within the time limits specified in Section 7.2, without limiting other rights or remedies available under this Agreement, at law or in equity, and without constituting or resulting in a waiver, release or estoppel of any right, action or cause of action NCPA may have against the Defaulting Participant, NCPA may take any or all of the following actions: (i) suspend the provision of services under this Agreement to such Defaulting Participant; or (ii) demand that the Defaulting Participant provide further assurances to guarantee the correction of the default, including the collection of a surcharge or increase in electric rates, or such other actions as may be necessary to produce necessary Revenues to correct the default. 7.6 Effect of Suspension. Item 5 Attachment B - Exhibit A to Resolution Approving ZWED Project Third Phase Agreement with NCPA        Item 5: Staff Report Pg. 34  Packet Pg. 67 of 318  22 THIRD PHASE AGREEMENT FOR PPA WITH ZWEDC 7.6.1 Generally. The suspension of this Agreement will not terminate, waive, or otherwise discharge any ongoing or undischarged liabilities, credits or obligations arising from this Agreement until such liabilities, credits or obligations are satisfied in full. 7.6.2 Suspension. If performance of all or any portion of this Agreement is suspended by NCPA with respect to a Participant in accordance with subsection 7.5(i), then such Participant shall pay any and all costs incurred by NCPA as a result of such suspension including reasonable attorney’s fees, the fees and expenses of other experts, including auditors and accountants, or other reasonable and necessary costs associated with such suspension and any portion of the Project Costs, scheduling and dispatch costs, and Administrative Services Costs that were not recovered from such Participant as a result of such suspension. Section 8. Administration of Agreement 8.1 Commission. The Commission is responsible for the administration of this Agreement. Each Participant shall be represented by its Commissioner or their designated alternate Commissioner (“Alternate”) pursuant to the Joint Powers Agreement. Each Commissioner shall have authority to act for the Participant represented with respect to matters pertaining to this Agreement. Item 5 Attachment B - Exhibit A to Resolution Approving ZWED Project Third Phase Agreement with NCPA        Item 5: Staff Report Pg. 35  Packet Pg. 68 of 318  23 THIRD PHASE AGREEMENT FOR PPA WITH ZWEDC 8.2 Forum. Whenever any action anticipated by this Agreement is required to be jointly taken by the Participants, such action shall be taken at regular or special meetings of the NCPA Commission. 8.3 Quorum. For purposes of acting upon matters that relate to administration of this Agreement, a quorum of the Participants shall consist of those Commissioners, or their designated Alternate, representing a numerical majority of the Participants. 8.4 Voting. Each Participant shall have the right to cast one vote with respect to matters pertaining to this Agreement. A unanimous vote of all Participants shall be required for action regarding: (i) any transfer of rights to a Third Party as described in Section 9 of this Agreement; and (ii) for matters related to any of the following actions as provided for in the PPA: (a) exercising any early termination provisions as set forth in Section 2.4 of the PPA, and (b) exercising any assignment rights as set forth in Section 12.7 of the PPA. For all other matters pertaining to this Agreement, a majority vote of the Participants shall be required for action. Section 9. Transfer of Rights by Participants 9.1 A Participant has the right to make transfers, sales, assignments and exchanges (collectively “transfers(s)”) of any portion of its Project Participation Percentage and rights thereto, subject to the approval provisions in Section 8.4 of this Agreement, provided that the transferee satisfies all applicable criterion in the PPA. If a Participant desires to transfer a portion or its entire share of the Project for a specific time interval, or Item 5 Attachment B - Exhibit A to Resolution Approving ZWED Project Third Phase Agreement with NCPA        Item 5: Staff Report Pg. 36  Packet Pg. 69 of 318  24 THIRD PHASE AGREEMENT FOR PPA WITH ZWEDC permanently, then NCPA will, if requested by such Participant, use its best efforts to transfer that portion of the Participant’s share of the Project. 9.2 Before a Participant may transfer an excess Project share pursuant to Section 9.1 to any person or entity other than a Participant, it shall give all other Participants the right to purchase the share on the same terms and conditions. Before a Participant may transfer an excess Project share pursuant to section 9.1 to any person or entity other than a Member, it shall give all Members the right to purchase the share on the same terms and conditions. Such right shall be exercised within thirty (30) days of receipt of notice of said right. No transfer shall relieve a Participant of any of its obligations under this Agreement except to the extent that NCPA receives payment of these obligations from a transferee. Section 10. Term and Termination. This Agreement shall become effective when it has been duly executed by all Participants, and delivered to and executed by NCPA (the “Effective Date”). NCPA shall notify all Participants in writing of the Effective Date. The Term of this Agreement shall be coterminous with the PPA, and shall commence on the Effective Date, and shall continue through the term of the PPA. Section 11. Withdrawal of Participants. No Participant may withdraw from this Agreement except as otherwise provided for herein. Item 5 Attachment B - Exhibit A to Resolution Approving ZWED Project Third Phase Agreement with NCPA        Item 5: Staff Report Pg. 37  Packet Pg. 70 of 318  25 THIRD PHASE AGREEMENT FOR PPA WITH ZWEDC Section 12. Settlement of Disputes and Arbitration. The Parties agree to make best efforts to settle all disputes among themselves connected with this Agreement as a matter of normal business under this Agreement. The procedures set forth in Section 10 of the Power Management and Administrative Services Agreement shall apply to all disputes that cannot be settled by the Participants themselves; provided, that the provisions of Section 4.5 shall first apply to all disputes involving invoices prepared by NCPA. Section 13. Miscellaneous 13.1 Confidentiality. The Parties will keep confidential all confidential or trade secret information made available to them in connection with this Agreement, to the extent possible, consistent with applicable laws, including the California Public Records Act. Confidential or trade secret information shall be marked or expressly identified as such. If a Party (“Receiving Party”) receives a request from a Third Party for access to, or inspection, disclosure or copying of, any other Party’s (the “S upplying Party”) confidential data or information, which the Receiving Party has possession of (“Disclosure Request”), then the Receiving Party shall provide notice and a copy of the Disclosure Request to the Supplying Party within three (3) Business Days after receipt of the Disclosure Request. Within three (3) Business Days after receipt of such notice, the Supplying Party shall provide notice to the Receiving Party either: (i) that the Supplying Party believes there are reasonable legal grounds for denying or objecting to the Disclosure Request, and the Supplying Party requests the Item 5 Attachment B - Exhibit A to Resolution Approving ZWED Project Third Phase Agreement with NCPA        Item 5: Staff Report Pg. 38  Packet Pg. 71 of 318  26 THIRD PHASE AGREEMENT FOR PPA WITH ZWEDC Receiving Party to deny or object to the Disclosure Request with respect to identified confidential information. In such case, the Receiving Party shall deny the Disclosure Request and the Supplying Party shall defend the denial of the Disclosure Request at its sole cost, and it shall indemnify the Receiving Party for all costs associated with denying or objecting to the Disclosure Request. Such indemnification by the Supplying Party of the Receiving Party shall include all of the Receiving Party’s costs reasonably incurred with respect to denial of or objection to the Disclosure Request, including but not limited to costs, penalties, and the Receiving Party’s attorney’s fees; or (ii) that the Receiving Party may grant the Disclosure Request without any liability by the Receiving Party to the Supplying Party. 13.2 Indemnification and Hold Harmless. Subject to the provisions of Section 13.4, each Participant agrees to indemnify, defend and hold harmless NCPA and its Members, including their respective governing boards, officials, officers, agents, and employees, from and against any and all claims, suits, losses, costs, damages, expenses and liability of any kind or nature, including reasonable attorneys’ fees and the costs of litigation, including experts, to the extent caused by any acts, omissions, breach of contract, negligence (active or passive), gross negligence, recklessness, or willful misconduct of that Participant, its governing officials, officers, emplo yees, subcontractors or agents, to the maximum extent permitted by law. Item 5 Attachment B - Exhibit A to Resolution Approving ZWED Project Third Phase Agreement with NCPA        Item 5: Staff Report Pg. 39  Packet Pg. 72 of 318  27 THIRD PHASE AGREEMENT FOR PPA WITH ZWEDC 13.3 Several Liabilities. No Participant shall, in the first instance, be liable under this Agreement for the obligations of any other Participant or for the obligations of NCPA incurred on behalf of other Participants. Each Participant shall be solely responsible and liable for performance of its obligations under this Agreement, except as otherwise provided for herein. The obligation of each Participant under this Agreement is, in the first instance, a several obligation and not a joint obligation with those of the other Participants. Notwithstanding the foregoing, the Participants acknowledge that any debts or obligations incurred by NCPA under this Agreement on behalf of any of them shall be borne solely by such Participants in proportion to their respective Project Participation Percentages, and not by non-Participant Members of NCPA, pursuant to Article IV, Section 3(b) of the Joint Powers Agreement. In the event that a Participant should fail to pay its share of the debts or obligations incurred by NCPA as required by this Agreement, the remaining Participants shall, in proportion to their Project Participation Percentages, pay such unpaid amounts and shall be reimbursed by the Participant failing to make such payments. 13.4 No Consequential Damages. FOR ANY BREACH OF ANY PROVISION OF THIS AGREEMENT FOR WHICH AN EXPRESS REMEDY OR MEASURE OF DAMAGES IS PROVIDED IN THIS AGREEMENT, THE LIABILITY OF THE DEFAULTING PARTY SHALL BE LIMITED AS SET FORTH IN SUCH PROVISION, AND ALL OTHER Item 5 Attachment B - Exhibit A to Resolution Approving ZWED Project Third Phase Agreement with NCPA        Item 5: Staff Report Pg. 40  Packet Pg. 73 of 318  28 THIRD PHASE AGREEMENT FOR PPA WITH ZWEDC DAMAGES OR REMEDIES ARE HEREBY WAIVED. IF NO REMEDY OR MEASURE OF DAMAGE IS EXPRESSLY PROVIDED, THE LIABILITY OF THE DEFAULTING PARTY SHALL BE LIMITED TO ACTUAL DAMAGES ONLY AND ALL OTHER DAMAGES AND REMEDIES ARE HEREBY WAIVED. IN NO EVENT SHALL NCPA OR ANY PARTICIPANT OR THEIR RESPECTIVE SUCCESSORS, ASSIGNS, REPRESENTATIVES, DIRECTORS, OFFICERS, AGENTS, OR EMPLOYEES BE LIABLE FOR ANY LOST PROFITS, CONSEQUENTIAL, SPECIAL, EXEMPLARY, INDIRECT, PUNITIVE, OR INCIDENTAL LOSSES OR DAMAGES, INCLUDING LOSS OF USE, LOSS OF GOODWILL, LOST REVENUES, LOSS OF PROFIT OR LOSS OF CONTRACTS EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, AND NCPA AND EACH PARTICIPANT EACH HEREBY WAIVES SUCH CLAIMS AND RELEASES EACH OTHER AND EACH OF SUCH PERSONS FROM ANY SUCH LIABILITY. The Parties acknowledge that California Civil Code section 1542 provides that: “A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.” The Parties waive the provisions of section 1542, or other similar provisions of law, and intend that the waiver and release provided by this Section of this Agreement shall be fully enforceable despite its reference to future or unknown claims. Item 5 Attachment B - Exhibit A to Resolution Approving ZWED Project Third Phase Agreement with NCPA        Item 5: Staff Report Pg. 41  Packet Pg. 74 of 318  29 THIRD PHASE AGREEMENT FOR PPA WITH ZWEDC 13.5 Waiver. No waiver of the performance by a Party of any obligation under this Agreement with respect to any default or any other matter arising in connection with this Agreement shall be effective unless given by the Commission or the governing body of a Participant, as applicable. Any such waiver by the Commission in any particular instance shall not be deemed a waiver with respect to any subsequent performance, default or matter. 13.6 Amendments. Except where this Agreement specifically provides otherwise, this Agreement may be amended only by written instrument executed by the Parties with the same formality as this Agreement. 13.7 Assignment of Agreement. 13.7.1 Binding Upon Successors. This Agreement shall inure to the benefit of and shall be binding upon the respective successors and assignees of the Parties to this Agreement. 13.7.2 No Assignment. Neither this Agreement, nor any interest herein, shall be transferred or assigned by a Party hereto except with the consent in writing of the other Parties hereto, which consent shall not be unreasonably withheld. 13.8 Severability. In the event that any of the terms, covenants or conditions of this Agreement or the application of any such term, covenant or condition, shall be held invalid as to any person or circumstance by any court having jurisdiction, all other terms, covenants or conditions of this Agreement and their application shall not be affected Item 5 Attachment B - Exhibit A to Resolution Approving ZWED Project Third Phase Agreement with NCPA        Item 5: Staff Report Pg. 42  Packet Pg. 75 of 318  30 THIRD PHASE AGREEMENT FOR PPA WITH ZWEDC thereby, but shall remain in force and effect unless the court holds that such provisions are not severable from all other provisions of this Agreement. 13.9 Governing Law. This Agreement shall be interpreted, governed by, and construed under the laws of the State of California. 13.10 Headings. All indices, titles, subject headings, section titles and similar items are provided for the purpose of convenience and are not intended to be inclusive, definitive, or affect the meaning of the contents of this Agreement or the scope thereof. 13.11 Notices. Any notice, demand or request required or authorized by this Agreement to be given to any Party shall be in writing, and shall either be personally delivered to a Participant’s Commissioner or Alternate, and to the General Manager, or shall be transmitted to the Participant and the General Manager at the addresses shown on the signature pages hereof. The designation of such addresses may be changed at any time by written notice given to the General Manager who shall thereupon give written notice of such change to each Participant. All such notices shall be deemed delivered when personally delivered, two (2) Business Days after deposit in the United States mail first class postage prepaid, or on the first Business Day following delivery through electronic communication. 13.12 Warranty of Authority. Each Party represents and warrants that it has been duly authorized by all requisite approval and action to execute and deliver this Agreement and that this Agreement is a binding, legal, and valid agreement enforceable in accordance Item 5 Attachment B - Exhibit A to Resolution Approving ZWED Project Third Phase Agreement with NCPA        Item 5: Staff Report Pg. 43  Packet Pg. 76 of 318  31 THIRD PHASE AGREEMENT FOR PPA WITH ZWEDC with its terms. Upon execution of this Agreement, each Participant shall deliver to NCPA a resolution of the governing body of such Participant eviden cing approval of and authority to enter into this Agreement. 13.13 Counterparts. This Agreement may be executed in any number of counterparts, and each executed counterpart shall have the same force and effect as an original instrument and as if all the signatories to all of the counterparts had signed the same instrument. Any signature page of this Agreement may be detached from any counterpart of this Agreement without impairing the legal effect of any signatures thereon, and may be attached to another counterpart of this Agreement identical in form hereto but having attached to it one or more signature pages. 13.14 Venue. In the event that a Party brings any action under this Agreement, the Parties agree that trial of such action shall be vested exclusively in the state courts of California in the County of Placer or in the United States District Court for the Eastern District of California. 13.15 Attorneys’ Fees. If a Party to this Agreement brings any action, including an action for declaratory relief, to enforce or interpret the provisions of this Agreement, then each Party shall bear its own fees and costs, including attorneys’ fees, associated with the action. 13.16 Counsel Representation. Pursuant to the provisions of California Civil Code Section 1717 (a), each of the Parties were represented by counsel in the negotiation and Item 5 Attachment B - Exhibit A to Resolution Approving ZWED Project Third Phase Agreement with NCPA        Item 5: Staff Report Pg. 44  Packet Pg. 77 of 318  32 THIRD PHASE AGREEMENT FOR PPA WITH ZWEDC execution of this Agreement and no one Party is the author of this Agreement or any of its subparts. Those terms of this Agreement which dictate the responsibility for bearing any attorney’s fees incurred in arbitration, litigation or settlement in a manner inconsistent with the provisions of Section 13.2 were intentionally so drafted by the Parties, and any ambiguities in this Agreement shall not be interpreted for or against a Party by reason of that Party being the author of the provision. 13.17 No Third Party Beneficiaries. Nothing contained in this Agreement is intended by the Parties, nor shall any provision of this Agreement be deemed or construed by the Parties, by any third person or any Third Parties, to be for the benefit of any Third Party, nor shall any Third Party have any right to enforce any provision of this Agreement or be entitled to damages for any breach by the Parties of any of the provisions of this Agreement. Item 5 Attachment B - Exhibit A to Resolution Approving ZWED Project Third Phase Agreement with NCPA        Item 5: Staff Report Pg. 45  Packet Pg. 78 of 318  33 THIRD PHASE AGREEMENT FOR PPA WITH ZWEDC IN WITNESS WHEREOF, NCPA and each Participant have, by the signature of its duly authorized representative shown below, executed and delivered a counterpart of this Agreement. NORTHERN CALIFORNIA POWER AGENCY 651 Commerce Drive Roseville, CA 95678 _____________________________ By:__________________________ Title: __________________________ Date: Approved as to form: _____________________________ By:__________________________ Its: General Counsel Date: Attestation (if applicable): _____________________________ By:__________________________ Its: Date: CITY OF SANTA CLARA 1500 Warburton Avenue Santa Clara, CA 95050 _____________________________ By:__________________________ Title: __________________________ Date: Approved as to form: _____________________________ By:__________________________ Its: City Attorney Date: Attestation (if applicable): _____________________________ By:__________________________ Its: Date: Item 5 Attachment B - Exhibit A to Resolution Approving ZWED Project Third Phase Agreement with NCPA        Item 5: Staff Report Pg. 46  Packet Pg. 79 of 318  34 THIRD PHASE AGREEMENT FOR PPA WITH ZWEDC CITY OF PALO ALTO 160 Palo Alto Avenue Palo Alto, CA 94301 _____________________________ By:__________________________ Title: ________________________ Date: Approved as to form: _____________________________ By: Its: City Attorney _________________ Date: Attestation (if applicable) _____________________________ By:__________________________ Its: Date: Item 5 Attachment B - Exhibit A to Resolution Approving ZWED Project Third Phase Agreement with NCPA        Item 5: Staff Report Pg. 47  Packet Pg. 80 of 318  35 THIRD PHASE AGREEMENT FOR PPA WITH ZWEDC EXHIBIT A PROJECT PARTICIPATION PERCENTAGES The following is a list of the Participants who are signatory to this Agreement, and their respective Project Participation Percentage share of the Project. Participants City of Santa Clara; 1.07 MW or 66.88% City of Palo Alto; 0.53 MW or 33.13% Item 5 Attachment B - Exhibit A to Resolution Approving ZWED Project Third Phase Agreement with NCPA        Item 5: Staff Report Pg. 48  Packet Pg. 81 of 318  36 THIRD PHASE AGREEMENT FOR PPA WITH ZWEDC EXHIBIT B PPA The Power Purchase Agreement between Zero Waste Energy Development Company, LLC and Northern California Power Agency has been attached to this Agreement as Exhibit B. Item 5 Attachment B - Exhibit A to Resolution Approving ZWED Project Third Phase Agreement with NCPA        Item 5: Staff Report Pg. 49  Packet Pg. 82 of 318  City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Public Works Meeting Date: February 26, 2024 Report #:2310-2130 TITLE Approval of Amendment No. 6 to Contract No. C16163034A with Nova Partners, Inc. to Add $766,919, Increasing the Not to Exceed Amount to $9,647,825, for Additional Construction Management Services for the New Public Safety Building Capital Improvement Program Project (PE- 15001) and Extend the Contract Term; and Approval of Amendment No. 2 to Contract No. S20177452 with Schaaf & Wheeler Consulting Civil Engineers to Add $9,600, Increasing the Not to Exceed Amount to $20,200, for Additional Professional Services and Extend the Contract Term for the New Public Safety Building Capital Improvement Program project (PE- 15001); CEQA: Environmental Impact Report for the New Public Safety Building and New California Avenue Area Parking Garage (Resolution No. 9772) RECOMMENDATION Staff recommends that Council: 1. Approve and authorize the City Manager or their designee to execute Amendment No. 6 to Contract No. C16163034A with Nova Partners, Inc. to add $766,919, increasing the not to exceed amount to $9,647,825 and to extend the contract term through July 31, 2025, for Construction Management Services for the New Public Safety Building project (PE-15001); and 2. Approve and authorize the City Manager or their designee to execute Amendment No. 2 to Contract No. S20177452 with Schaaf & Wheeler Consulting Civil Engineers to add $9,600, increasing the not to exceed amount to $20,200, for additional Professional Services and extend the contract term through December 31, 2024. BACKGROUND The New Public Safety Building (PSB) (PE-15001) is one of ten key projects included in the 2014 Council Infrastructure Plan. The PSB was identified as the plan’s highest priority project, and its environmental impacts were analyzed with the 350 Sherman Avenue parking garage project for the purposes of complying with the California Environmental Quality Act (CEQA). The parking garage opened in December 2020. On February 1, 2021, Council approved the award of the Item 6 Item 6 Staff Report        Item 6: Staff Report Pg. 1  Packet Pg. 83 of 318  construction contract for the PSB to Swinerton Builders (Swinerton) and authorized execution and delivery of one series of Certificates of Participation (COPs) in an amount not to exceed $120 million to finance PSB construction.1 On June 13, 2016, Council authorized a contract with Nova Partners, Inc. (Nova) for program management and construction management services for the Infrastructure Plan projects implementation.2 On November 27, 2017, Amendment No. 1 to Nova’s contract added construction management services for the Fire Station #3 replacement project.3 On February 21, 2018, Amendment No. 2 to Nova’s contract updated the hourly rate schedules for years 2018 and 2019. On December 10, 2018, Amendment No. 3 to Nova’s contract added construction management, special inspection and testing for the California Avenue Parking Garage.4 On February 1, 2021, Amendment No. 4 to Nova’s contract added the construction management, special inspection and testing for the PSB.5 On July 31, 2023, Amendment No. 5 to Nova’s contract extended the time of the contract through January 2024. ANALYSIS Staff recommends approval of Amendment No. 6 (Attachment A) to the contract with Nova Partners, Inc., which provides additional funding for four significant scopes of work, as well as a 10% replenishment in the amount of $69,720 to address other potential construction management services and testing needs for the project. The four significant scopes of work in Nova’s contract include Construction Management Services (performed by Nova Partners Inc.), Specialty Scheduling Services (performed by Rowecon, LLC.), Special Testing & Inspection Services (performed by Consolidated Engineering Laboratories (CEL), and Photo-Documentation (performed by Multi-Vista). The extension of construction management services is instrumental to meet the project needs and projected project completion date. Staff recommends the approval of Amendment No. 2 (Attachment B) to the contract with Schaaf and Wheeler Consulting Civil Engineers. Schaaf and Wheeler Consulting Civil Engineers 1 City Council, February 1, 2021; Agenda Item #3, SR #11752 2 City Council, June 13, 2016; Agenda Item #5, SR #6809 3 City Council, November 27, 2017; Agenda Item #7, SR #8561 4 City Council, December 10, 2018; Agenda Item #15, SR #9688 5 City Council, February 1, 2021; Agenda Item #3, SR #11752 Item 6 Item 6 Staff Report        Item 6: Staff Report Pg. 2  Packet Pg. 84 of 318  Amendment No. 2 extends the contract term and provides additional funding for stormwater construction observation and certification services. Move-in timelines project the PSB to be fully operational in Spring 2024, subject to unforeseen construction impacts such as weather or other impacts. FISCAL/RESOURCE IMPACT STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW 6 ATTACHMENTS APPROVED BY: 6 Resolution 9772, https://www.cityofpaloalto.org/files/assets/public/v/1/city-clerk/resolutions/reso- 9772.pdf?t=40475.53 Item 6 Item 6 Staff Report        Item 6: Staff Report Pg. 3  Packet Pg. 85 of 318  Vers.: Aug. 5, 2019 Page 1 of 7 AMENDMENT NO. 6 TO CONTRACT NO. C16163034A BETWEEN THE CITY OF PALO ALTO AND NOVA PARTNERS, INC. This Amendment No. 6 (this “Amendment”) to Contract No. C16163034A (the “Contract” as defined below) is entered into as of February 26, 2024, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and NOVA PARTNERS, INC., a California corporation, located at 201 Moffett Blvd., Mountain View, CA 94043 (“CONSULTANT”). 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 providing Project and Program Management Services to complete the infrastructure plan for nine major projects approved by City Council in 2014 (“Project”), as detailed therein. B. The Parties entered into Amendment No. 1 to add Construction Management (CM) services for the Fire Station 3 Replacement Project to the scope of services and to increase the compensation by Three Hundred Fifty-Nine Thousand Two Hundred Sixty-Four Dollars ($359,264) from Four Million Two Hundred Thousand Four Hundred Seventy-One Dollars ($4,200,471) to Four Million Five Hundred Fifty-Nine Thousand Seven Hundred Thirty-Five Dollars ($4,559,735), as detailed therein. C. The Parties entered into Amendment No. 2 to include the Hourly Rate Schedule for years 2018 and 2019, as detailed therein. D. The Parties entered into Amendment No. 3 to add Construction Management (CM) services for the New California Avenue Area Parking Garage Project to the scope of services and to increase the compensation by One Million Two Hundred Forty-Nine Thousand One Hundred Ninety-Three Dollars ($1,249,193), from Four Million Five Hundred Fifty-Nine Thousand Seven Hundred Thirty-Five Dollars ($4,559,735) to a new not-to-exceed amount of Five Million Eight Hundred Eight Thousand Nine Hundred Twenty-Eight Dollars ($5,808,928), as detailed therein. E. The Parties entered into Amendment No. 4 to add Construction Management (CM) services for the New Public Safety Building Project to the scope of services and to increase the compensation by Three Million Seventy-One Thousand Nine Hundred Seventy-Eight Dollars ($3,071,978), from Five Million Eight Hundred Eight Thousand Nine Hundred Twenty-Eight Dollars ($5,808,928) to a new total not-to-exceed amount of Eight Million Eight Hundred Eighty Thousand Nine Hundred Six Dollars ($8,880,906), as detailed therein. F. In accordance with Palo Alto Municipal Code section 2.30.290, the Parties entered into Amendment No. 5 to extend the contract term for six months, through January 31, 2024 at no additional cost to the City, as detailed therein. G. The Parties now wish to amend the Contract to extend the contract term for eighteen months through July 31, 2025 and increase compensation by Seven Hundred Sixty-Six Thousand Nine Hundred Nineteen Dollars ($766,919) from Eight Million Eight Hundred Eighty Thousand Nine Hundred Six Dollars ($8,880,906) to a new not- to-exceed amount of Nine Million Six Hundred Forty-Seven Thousand Eight Hundred Twenty-Five Dollars ($9,647,825) in order to provide continued services to manage the Public Safety Building, as detailed herein. DocuSign Envelope ID: D629A107-898D-4839-8F5D-60FCF5315928 Item 6 Attachment A - Nova Partners, Inc. Contract No. C16163034A Amendment No. 6        Item 6: Staff Report Pg. 4  Packet Pg. 86 of 318  Vers.: Aug. 5, 2019 Page 2 of 7 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. C16163034A between CONSULTANT and CITY, dated June 13, 2016., as amended by: Amendment No.1, dated November 27, 2017 Amendment No.2, dated February 21, 2018 Amendment No.3, dated December 10, 2018 Amendment No.4, dated February 1, 2021 Amendment No.5, dated July 31, 2023 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 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 Eight Million Seven Hundred Seventy Thousand Seven Hundred Fifty Dollars ($8,7770,750) . The hourly schedule of rates, if applicable, is set out in Exhibit “C-1,” entitled “SCHEDULE OF RATES,” Exhibit “C-2,” entitled “SCHEDULE OF RATES, AMENDMENT NO.3,” or Exhibit “C-3,” entitled “SCHEDULE OF RATES, AMENDMENT NO.4,” as applicable. 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 Eight Hundred Seventy-Seven Thousand Seventy-Five Dollars ($877,075) 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 Nine Million Six Hundred Forty-Seven Thousand Eight Hundred Twenty-Five Dollars ($9,647,825), 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,” entitled “SCOPE OF SERVICES”; Exhibit “A-1”, entitled “SCOPE OF SERVICES, AMENDMENT NO. 1”; Exhibit “A-2”, entitled “SCOPE OF SERVICES, AMENDMENT NO. 3, ADDED”; and Exhibit “A-3”, entitled “SCOPE OF SERVICES, AMENDMENT NO. 4, ADDED” (collectively, also referred to in this Agreement as the “Basic Services”). 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 DocuSign Envelope ID: D629A107-898D-4839-8F5D-60FCF5315928 Item 6 Attachment A - Nova Partners, Inc. Contract No. C16163034A Amendment No. 6        Item 6: Staff Report Pg. 5  Packet Pg. 87 of 318  Vers.: Aug. 5, 2019 Page 3 of 7 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,” entitled “SCHEDULE OF RATES”, Exhibit “C-2,” entitled “SCHEDULE OF RATES, AMENDMENT NO.3,” or Exhibit “C-3,” entitled “SCHEDULE OF RATES, AMENDMENT NO.4,” as applicable, or a negotiated lump sum provided such a sum is less costly to the CITY. 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 3. The following exhibit(s) to the Contract is/are hereby amended or added, as indicated below, to read as set forth in the attachment(s) to this Amendment, which is/are hereby incorporated in full into this Amendment and into the Contract by this reference: a. Exhibit “B” entitled “EXHIBIT B-3 SCHEDULE OF PERFORMANCE, AMENDMENT NO. 6”, AMENDED, REPLACES PREVIOUS. b. Exhibit “C” entitled “EXHIBIT C COMPENSATION, AMENDMENT NO. 6”, AMENDED, REPLACES PREVIOUS. SECTION 4. 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 5. 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.) DocuSign Envelope ID: D629A107-898D-4839-8F5D-60FCF5315928 Item 6 Attachment A - Nova Partners, Inc. Contract No. C16163034A Amendment No. 6        Item 6: Staff Report Pg. 6  Packet Pg. 88 of 318  Vers.: Aug. 5, 2019 Page 4 of 7 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 NOVA PARTNERS, INC. Officer 1 By:___________________________ Name:________________________ Title:__________________________ Officer 2 By:____________________________ Name:_________________________ Title:___________________________ Attachments: Exhibit “B” entitled “EXHIBIT B-3 SCHEDULE OF PERFORMANCE, AMENDMENT No. 6”, (AMENDED, REPLACES PREVIOUS) Exhibit “C” entitled “EXHIBIT C COMPENSATION, AMENDMENT NO. 6” (AMENDED, REPLACES PREVIOUS) DocuSign Envelope ID: D629A107-898D-4839-8F5D-60FCF5315928 Principal David Marks Bob Olson, Principal Principal Item 6 Attachment A - Nova Partners, Inc. Contract No. C16163034A Amendment No. 6        Item 6: Staff Report Pg. 7  Packet Pg. 89 of 318  Vers.: Aug. 5, 2019 Page 5 of 7 EXHIBIT “B-3” SCHEDULE OF PERFORMANCE, AMENDMENT NO. 6 (AMENDED-REPLACES PREVIOUS) CONSULTANT shall commence performance of Task 5.3 (Construction Management Services for the New Public Safety Building) of Exhibit “A-3”, upon issuance of Notice to Proceed through the duration of the project unless earlier terminated by CITY in its sole discretion. For information purposes, Task 5.3 is expected to be performed from January 1, 2021 through July 31, 2025 and consist of a total duration of 55 months from commencement of construction; however, that timeframe may be modified by CITY as project needs require. DocuSign Envelope ID: D629A107-898D-4839-8F5D-60FCF5315928 Item 6 Attachment A - Nova Partners, Inc. Contract No. C16163034A Amendment No. 6        Item 6: Staff Report Pg. 8  Packet Pg. 90 of 318  Vers.: Aug. 5, 2019 Page 6 of 7 EXHIBIT “C” COMPENSATION, AMENDMENT NO. 6 (AMENDED, REPLACES PREVIOUS) The CITY agrees to compensate the 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 schedule of rates attached as Exhibit “C-1”, Exhibit “C-2”, and/or Exhibit “C-3,” as applicable, up to the not to exceed budget amount for each task set forth below. CONSULTANT shall perform the tasks and categories of work as outlined and budgeted below. The CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation for Basic Services, including specified reimbursable expenses, and the total compensation for Additional Services, do not exceed the amounts set forth in Section 4 of this Agreement. REIMBURSABALE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost up to the not-to-exceed amount of: $16,000. Expenses for which CONSULTANT shall be reimbursed are: A. Travel outside the San Francisco Bay area, including transportation and meals, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses for City of Palo Alto employees. B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges are reimbursable at actual cost. All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense anticipated to be more than $1,000 shall be approved in advance by the CITY’s project manager. (CONTINUED ON THE NEXT PAGE) DocuSign Envelope ID: D629A107-898D-4839-8F5D-60FCF5315928 Item 6 Attachment A - Nova Partners, Inc. Contract No. C16163034A Amendment No. 6        Item 6: Staff Report Pg. 9  Packet Pg. 91 of 318  Vers.: Aug. 5, 2019 Page 7 of 7 BUDGET SCHEDULE DESCRIPTION NOT-TO-EXCEED AMOUNT BASIC SERVICES Year 1 Year 2 Year 3 Amend 4 Amend 6 Total Task 1.1: Project Management, Planning, and Coordination (Projects 1-9) $140,898 $140,898 $140,898 $0 $0 $422,694 Task 1.2: Project Management System (Projects 1-9) $175,000 $100,000 $100,000 $0 $0 $375,000 Task 2: Acquisition and management of project consultants (Projects 1-3) $144,975 $144,975 $144,975 $0 $0 $434,925 Task 3: Design/Document reviews (Projects 1-3) $206,762 $206,762 $206,762 $0 $0 $620,286 Task 4: Pre-Construction services (Projects 1-3) $283,650 $283,650 $283,650 $0 $0 $850,950 Task 5.1: Construction Management services for Fire Station 3 Replacement $0 $326,604 $0 $0 $0 $326,604 Task 5.2: Construction Management services for New California Avenue Area Parking Garage $0 $0 $1,135,630 $0 $0 $1,135,630 Task 5.3: Construction Management services for New Public Safety Building $0 $0 $0 $2,792,707 $697,199 $3,489,906 Task 6: Budget and schedule management (Projects 1-9) $63,985 $63,985 $63,985 $0 $0 $191,955 Task 7.1: On-call services for Transportation Projects $333,400 $253,400 $0 $0 $0 $586,800 Task 7.2: On-call services (allowance) $100,000 $100,000 $100,000 $0 $0 $300,000 TOTAL BASIC SERVICES $1,448,670 $1,620,274 $2,175,900 $2,792,707 $697,199 $8,734,750 REIMBURSABLE EXPENSES $12,000 $12,000 $12,000 $0 $0 $36,000 TOTAL BASIC SERVICES AND REIMBURSABLES $1,460,670 $1,632,274 $2,187,900 $2,792,707 $697,199 $8,770,750 ADDITIONAL SERVICES – 10% OF ABOVE $146,067 $163,227 $218,790 $279,271 $69,720 $877,075 TOTAL NOT-TO-EXCEED AMOUNT $1,606,737 $1,795,501 $2,406,690 $3,071,978 $766,919 $9,647,825 DocuSign Envelope ID: D629A107-898D-4839-8F5D-60FCF5315928 Item 6 Attachment A - Nova Partners, Inc. Contract No. C16163034A Amendment No. 6        Item 6: Staff Report Pg. 10  Packet Pg. 92 of 318  Vers.: Aug. 5, 2019 Page 1 of 8 AMENDMENT NO. 2 TO CONTRACT NO. S20177452 BETWEEN THE CITY OF PALO ALTO AND SCHAAF & WHEELER, CONSULTING CIVIL ENGINEERS This Amendment No. 2 (this “Amendment”) to Contract No. S20177452 (the “Contract” as defined below) is entered into as of the February 26, 2024, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and SCHAAF & WHEELER CONSULTING CIVIL ENGINEERS, located at 4699 Old Ironsides Drive, Suite 350, Santa Clara, CA 95054 ("CONSULTANT"). CITY and CONSULTANT are referred to collectively herein as the “Parties”. R E C I T A L S A. The Contract (as defined below) was entered into by and between the Parties to provide final plan review and certification of the Stormwater Management Plan and design documents, and provide construction observation and certification of the installation of the bioretention areas and soil cells for the Public Safety Building project, as detailed therein. B. The Parties entered into Amendment No. 1 to extend the contract term for six (6) months to October 31, 2023, at no additional cost to the City, as detailed therein. C. The Parties now wish to amend the Contract in order to retroactively extend the contract term for fourteen (14) months through December 31, 2024, update the Scope of Services and increase the compensation by Nine Thousand Six Hundred Dollars ($9,600), from Ten Thousand Six Hundred Dollars ($10,600) to a new total not-to-exceed amount of Twenty Thousand Two Hundred Dollars ($20,200), as detailed herein. 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. S20177452 between CONSULTANT and CITY, dated April 26, 2020, as amended by: Amendment No. 1, dated February 27, 2023 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 2 “TERM” of the Contract is hereby amended to read as follows: “The term of this Agreement shall be from the date of its full execution through December 31, 2024 unless terminated earlier pursuant to Section 19 of this Agreement.” DocuSign Envelope ID: 8EDB914C-C3C4-43DA-83B5-E3EF166B32EA Item 6 Attachment B - Schaaf & Wheeler Consulting Civil Engineers Contract No. S20177452 Amend No. 2        Item 6: Staff Report Pg. 11  Packet Pg. 93 of 318  Vers.: Aug. 5, 2019 Page 2 of 8 SECTION 3. 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” (also referred to herein as the “Basic Services”), and any reimbursable expenses specified in Exhibit “C”, entitled “COMPENSATION”, shall not exceed Nineteen Thousand Two Hundred Dollars ($19,200), as detailed in Exhibit “C”. CONSULTANT agrees to complete all Basic Services, including any specified reimbursable expenses, within this amount. In the event Additional Services are authorized in accordance with Section 1 (Scope of Services), the compensation for Additional Services shall not exceed One Thousand Dollars ($1,000), and the total compensation under this Agreement for Basic Services, Additional Services and any specified reimbursable expenses shall not exceed Twenty Thousand Two Hundred Dollars ($20,200). The rate schedule, as applicable, is set out at 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 as set forth herein shall be at no cost to the CITY. Additional Services, if any, may be authorized in accordance with and subject to the provisions of Section 1 (Scope of Services), provided that: (i) the Additional Services check box at Section 1 is selected, and (ii) a dollar amount for Additional Services is allocated in this Section 4. If either or both of these requirements are not met, or if the dollar amount for Additional Services under this Section 4 would be exceeded, then Additional Services may only be authorized by a written amendment to this Agreement as provided for in Section 27.4 herein. CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY.” SECTION 4. The following exhibit(s) to the Contract is hereby amended, as indicated below, to read as set forth in the attachment to this Amendment, which is hereby incorporated in full into this Amendment and into the Contract by this reference: a. Exhibit “A” entitled “SCOPE OF SERVICES, AMENDMENT NO. 2”, AMENDED, REPLACES PREVIOUS. b. Exhibit “B” entitled “SCHEDULE OF PERFORMANCE, AMENDMENT NO. 2”, AMENDED, REPLACES PREVIOUS. c. Exhibit “C” entitled “COMPENSATION, AMENDMENT NO. 2”, AMENDED, REPLACES PREVIOUS. SECTION 5. 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 6. Incorporation of Recitals. The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference. DocuSign Envelope ID: 8EDB914C-C3C4-43DA-83B5-E3EF166B32EA Item 6 Attachment B - Schaaf & Wheeler Consulting Civil Engineers Contract No. S20177452 Amend No. 2        Item 6: Staff Report Pg. 12  Packet Pg. 94 of 318  Vers.: Aug. 5, 2019 Page 3 of 8 (SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.) DocuSign Envelope ID: 8EDB914C-C3C4-43DA-83B5-E3EF166B32EA Item 6 Attachment B - Schaaf & Wheeler Consulting Civil Engineers Contract No. S20177452 Amend No. 2        Item 6: Staff Report Pg. 13  Packet Pg. 95 of 318  Vers.: Aug. 5, 2019 Page 4 of 8 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 SCHAAF & WHEELER, CONSULTING CIVIL ENGINEERS Officer 1 By:_____________________________ Name:__________________________ Title:___________________________ Officer 2 By:____________________________ Name:_________________________ Title:__________________________ Attachments: Exhibit “A” entitled “SCOPE OF SERVICES, AMENDMENT NO. 2”, AMENDED, REPLACES PREVIOUS. Exhibit “B” entitled “SCHEDULE OF PERFORMANCE, AMENDMENT NO. 2”, AMENDED, REPLACES PREVIOUS. Exhibit “C” entitled “COMPENSATION, AMENDMENT NO. 2”, AMENDED, REPLACES PREVIOUS. DocuSign Envelope ID: 8EDB914C-C3C4-43DA-83B5-E3EF166B32EA Caitlin J. Tharp Vice President RCE 76810 Vice President Daniel J. Schaaf, Secretary Item 6 Attachment B - Schaaf & Wheeler Consulting Civil Engineers Contract No. S20177452 Amend No. 2        Item 6: Staff Report Pg. 14  Packet Pg. 96 of 318  Vers.: Aug. 5, 2019 Page 5 of 8 EXHIBIT “A” SCOPE OF SERVICES, AMENDMENT NO. 2 (AMENDED, REPLACES PREVIOUS) Schaaf & Wheeler (CONSULTANT) will perform the Services as follows for final plan review and construction observation services of the Stormwater Management Plan for the Public Safety Building project located at 250 Sherman Avenue in Palo Alto: Task 1: Final Review of Public Safety Building Stormwater Design Documents 1. Review of the draft Storm Management Plan and design documents prepared by Sandis. 2. Prepare a comment letter with a list of suggestions and specific comments. 3. Phone conversations with your design staff to resolve or clarify any comment questions. 4. Review of the revised plan. 5. Two copies of the Final Certification Form and summary letter for submittal to the City. Task 2: Stormwater Construction Observation of Public Safety Building 1. Up to sixteen (16) site visits to observe three (3) remaining soil cells areas and five (5) bioretention planters. The first site visits are to observe the soil cells, impermeable liner, underdrain and rock prior to placement of the soil. The second visit will be to observe the soil, overflow and plantings at time of installation and prior to occupancy. A total of sixteen visits have been scoped to account for construction phasing and incorporation of observation comments. It assumes at least three treatment measures will be ready for observation at each visit. Photographs cannot be accepted in lieu of site visits. Site visits in addition to those described are available at an additional cost. It is also the owner/contractor’s responsibility to provide Schaaf & Wheeler with a minimum of two days’ notice to schedule the site visits. 2. It is the owner/contractor’s responsibility to provide Schaaf & Wheeler with a minimum of two days’ notice to schedule the site visit. 3. A final letter and certificate of approval form and any requested supporting data will be provided for submittal to the City. DocuSign Envelope ID: 8EDB914C-C3C4-43DA-83B5-E3EF166B32EA Item 6 Attachment B - Schaaf & Wheeler Consulting Civil Engineers Contract No. S20177452 Amend No. 2        Item 6: Staff Report Pg. 15  Packet Pg. 97 of 318  Vers.: Aug. 5, 2019 Page 6 of 8 EXHIBIT “B” SCHEDULE OF PERFORMANCE, AMENDMENT NO. 2 (AMENDED, REPLACES PREVIOUS) CONSULTANT shall perform the Services so as to complete each milestone within the number of days or date 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 from CITY of the notice to proceed (“NTP”). 1 Final Review of Public Safety Building Stormwater Design Documents 20 weeks 2 Construction Observation of Public Safety Building Bioretention and Silva Cells 243 weeks DocuSign Envelope ID: 8EDB914C-C3C4-43DA-83B5-E3EF166B32EA Item 6 Attachment B - Schaaf & Wheeler Consulting Civil Engineers Contract No. S20177452 Amend No. 2        Item 6: Staff Report Pg. 16  Packet Pg. 98 of 318  Vers.: Aug. 5, 2019 Page 7 of 8 EXHIBIT “C” COMPENSATION, AMENDMENT NO. 2 (AMENDED, REPLACES PREVIOUS) The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the hourly rate schedule attached as exhibit C- 1 up to the not to exceed budget amount for each task set forth below. CONSULTANT shall perform the tasks and categories of work as outlined and budgeted below. The CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation for Basic Services, including reimbursable expenses, and the total compensation for Additional Services do not exceed the amounts set forth in Section 4 of this Agreement. BUDGET SCHEDULE NOT TO EXCEED AMOUNT Task 1 $4,000.00 Final Review of Public Safety Building Stormwater Design Documents Task 2 $5,600.00 Construction Observation of Public Safety Building Bioretention and Soil Cells Task 2 Amendment No. 2 $9,600.00 Construction Observation of Public Safety Building Bioretention and Soil Cells Sub-total Basic Services $19,200.00 Total Basic Services $19,200.00 Additional Services (Not to Exceed) $1,000.00 Maximum Total Compensation $20,200.00 ADDITIONAL SERVICES The CONSULTANT shall provide Additional Services (as defined in Section 4) only by advanced, written authorization from the CITY pursuant to a written amendment to this Agreement per Section 27.4 of this Agreement. The CONSULTANT, at the CITY’s project manager’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT’s proposed maximum DocuSign Envelope ID: 8EDB914C-C3C4-43DA-83B5-E3EF166B32EA Item 6 Attachment B - Schaaf & Wheeler Consulting Civil Engineers Contract No. S20177452 Amend No. 2        Item 6: Staff Report Pg. 17  Packet Pg. 99 of 318  Vers.: Aug. 5, 2019 Page 8 of 8 compensation, including any reimbursable expenses, for such services based on the rates set forth in Exhibit C-1. The Additional Services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY’s Project Manager and CONSULTANT prior to commencement of the services. Performance and payment for Additional Services is subject to all requirements and restrictions in this Agreement. DocuSign Envelope ID: 8EDB914C-C3C4-43DA-83B5-E3EF166B32EA Item 6 Attachment B - Schaaf & Wheeler Consulting Civil Engineers Contract No. S20177452 Amend No. 2        Item 6: Staff Report Pg. 18  Packet Pg. 100 of 318  City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Planning and Development Services Meeting Date: February 26, 2024 Report #:2401-2547 TITLE Approval of Amendment No. 1 to Professional Services Agreement S21180224 with Matrix Consulting Group for a Planning and Development Services Fee Study in the Amount of $56,500 for a total Not to Exceed of $138,000 and Extension of the Contract Term through January 31, 2026. Environmental Assessment: Exempt in Accordance with CEQA Guidelines Section 15061(3)(b). RECOMMENDATION Staff recommends that the City Council approve and authorize the City Manager designee to execute Amendment No.1 to Contract S21180224 with Matrix Consulting Group (Attachment A) for a Planning and Development Services Fee Study in an amount not-to-exceed $56,500 and extend the term of the contract through January 31, 2026. This amendment results in a revised total contract not-to-exceed $138,000. EXECUTIVE SUMMARY Staff recommends the approval of an amendment to agreement S21180224 with Matrix Consulting Group for the purpose of expanding and completing the Planning and Development Services costs of services study. In 2021, staff completed a request for proposals (RFP) and initiated a contract with Matrix consulting to reexamine the structure and update fees for service due to the merging of the former Planning and Community Environment and Development Services Departments. As the study progressed, unanticipated variables were identified, and additional analysis was required. Staff also recommends extending the contract through January 2026 to allow adequate time for post implementation refinements to the fees. BACKGROUND Fees for service are charged to recover eligible costs incurred in providing a special service from which one or more individuals obtain a benefit. California State Law, Government Code 66014(a), states that fees for services charged by local governments may not exceed the estimated reasonable cost of providing the service for which the fee is charged. Council is not Item 7 Item 7 Staff Report        Item 7: Staff Report Pg. 1  Packet Pg. 101 of 318  bound to set fees to match the cost of provided services; however, fees cannot be set above the cost of service for one fee to compensate for a lower cost recovery decision of another fee. Planning and Development Services fees are generally established for the purpose of fully recovering the costs reasonably borne by the City in providing service. Although there are some areas in which the City Council may wish to recover lesser amounts, a high level of cost recovery for most planning and development fees is consistent with the City’s User Fee Cost Recovery Level Policy, adopted by the City Council on June 17, 20191. The City of Palo Alto’s fees are approved by City Council and published in the Municipal Fee Schedule. In Fiscal Year 2020, Planning and Community Environment (PCE) and Development Services (DS) merged into the Planning and Development Services (PDS) Department. Concurrently, the Transportation division, which was previously in Planning and Community Environment, established the Office of Transportation. To align department-wide fees, staff pursued a cost of services study to determine the staff time and related costs associated with each fee-related service. The outcome of the study would provide fee adjustments, eliminate redundant or no longer applicable fees, and establish new fees for City Council consideration and approval. On August 24, 2020, the City released a request for proposals and six firms responded to the RFP. Based on the criteria of experience and costs, the evaluation panel selected Matrix Consulting Group as the best vendor to perform the study. On February 21, 2021, the City entered into a contract with Matrix Consulting Group to conduct a comprehensive review and analysis of existing PDS fees and to provide a recommendation on appropriate fee levels and structure. This contract expired on December 31, 2023. ANALYSIS As the study proceeded, staff and Matrix Consulting Group determined that under the new department structure, an organizational management study was required for the Fire Prevention Program before further work could be completed. Although is program area is led by the Fire Department, a portion of these activities are housed within Development Services, the results of the organizational update would inform the broader PDS cost of services analysis. Staff initiated work with Matrix Consulting Group to begin the study on the Fire Prevention Program in January 2022. Due to staff transitions and vacancies for both Fire and Planning and Development Services, this study was paused and resumed in early 2023. The Fire Prevention Program organizational study is now in its final phase of completion and the Planning and Development Services Department is now able to resume the larger PDS cost of services study. Staff is requesting an amendment to the contract to allow for the refreshing of the PDS cost of services analysis, ensuring that fees are properly aligned with the new department structure. 1 https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=2089 Item 7 Item 7 Staff Report        Item 7: Staff Report Pg. 2  Packet Pg. 102 of 318  The amendment will also include an extended timeline to address any post-implementation questions that may arise once new fees are adopted and implemented. FISCAL/RESOURCE IMPACT STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Item 7 Item 7 Staff Report        Item 7: Staff Report Pg. 3  Packet Pg. 103 of 318  Vers.: Aug. 5, 2019 Page 1 of 8 AMENDMENT NO. 1 TO CONTRACT NO. S21180224 BETWEEN THE CITY OF PALO ALTO AND MATRIX CONSULTING GROUP This Amendment No. 1 (this “Amendment”) to Contract No. S21180224 (the “Contract” as defined below) is entered into as of December 20, 2023 by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and MATRIX CONSULTING GROUP, a California Corporation located at 1650 S. Amphlett Boulevard, Suite 213, San Mateo, CA 94402 (“CONSULTANT”). 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 conducting a comprehensive review of the department’s existing fees, as detailed therein. B. The Parties now wish to amend the Contract S21180224 in order to extend the term by thirty (30) months, changing the expiration from December 31, 2023, to June 30, 2026 and to increase compensation by Fifty Six Thousand Five Hundred Dollars ($56,500) from Eight One Thousand Five Hundred Dollars ($81,500) to a new total not to exceed compensation of One Hundred Thirty Eight Thousand Dollars ($138,000). 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: Contract. The term “Contract” shall mean Contract No. S21180224 between CONSULTANT and CITY, dated February 15, 2021. a. 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 2. TERM of the Contract is hereby amended to read as follows: The term of this Agreement shall be from the date of its full execution through June 30, 2026, unless terminated earlier pursuant to Section 19 (Termination) of this Agreement. SECTION 3. Section 3. 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 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 Hundred Twenty-One Thousand Seven Hundred Dollars ($121,700). The hourly schedule of DocuSign Envelope ID: BCEF7477-3F46-4D42-A6C7-55715CAE3E7A Item 7 Attachment A - S21180224 Amendment No.1 - Matrix Consulting Group        Item 7: Staff Report Pg. 4  Packet Pg. 104 of 318  Vers.: Aug. 5, 2019 Page 2 of 8 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 3.) In addition to the not-to-exceed compensation specified above, CITY has set aside the not-to-exceed compensation amount of Sixteen Thousand Three Hundred Dollars ($16,300) 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 Thirty-Eight Thousand Dollars ($138,000), 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 of the original contract. 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 3. CONSULTANT shall provide Additional Services only by advanced, written authorization from CITY. SECTION 4. The following exhibit(s) to the Contract is/are hereby amended, as indicated below, to read as set forth in the attachment(s) to this Amendment, which is/are hereby incorporated in full into this Amendment and into the Contract by this reference: a. Exhibit “B” entitled “SCHEDULE OF PERFORMANCE”, AMENDED, REPLACES PREVIOUS. b. Exhibit “C” entitled “COMPENSATION”, AMENDED, REPLACES PREVIOUS. c. Exhibit “C-1” entitled “SCHEDULE OF RATE”, ADDED, AMENDED, REPLACES PREVIOUS. SECTION 5. 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 6. 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.) DocuSign Envelope ID: BCEF7477-3F46-4D42-A6C7-55715CAE3E7A Item 7 Attachment A - S21180224 Amendment No.1 - Matrix Consulting Group        Item 7: Staff Report Pg. 5  Packet Pg. 105 of 318  Vers.: Aug. 5, 2019 Page 3 of 8 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 MATRIX CONSULTING GROUP Officer 1 By: Name: Richard Brady Title: President rbrady@matrixcg.net Officer 2 By: Name: Courtney Ramos Title: Vice President Attachments: • EXHIBIT B – AMENDMENT NO. 1, (AMENDED, REPLACES PREVIOUS) • EXHIBIT C – AMENDMENT NO. 1 (AMENDED, REPLACES PREVIOUS) • EXHIBIT C-1 – AMENDMENT NO. 1 (ADDED, AMENDED, REPLACES PREVIOUS) DocuSign Envelope ID: BCEF7477-3F46-4D42-A6C7-55715CAE3E7A Item 7 Attachment A - S21180224 Amendment No.1 - Matrix Consulting Group        Item 7: Staff Report Pg. 6  Packet Pg. 106 of 318  Vers.: Aug. 5, 2019 Page 4 of 8 EXHIBIT B SCHEDULE OF PERFORMANCE, AMENDMENT NO. 1 (AMENDED, REPLACES PREVIOUS) CONSULTANT shall perform the Services so as to complete each milestone by dates 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. Deliverables Schedule Task 1: Research & Data Collection Completed by June 30, 2025 Task 2: Department Collaboration, Presentations, & Training Completed by June 30, 2025 Task 3: Flat Fees Completed by June 30, 2025 Task 4: Valuation Based Fees Completed by June 30, 2025 Task 5: Deposit Based Fees Structure Completed by June 30, 2025 Task 6: Report and Template Creation Completed by June 30, 2025 Task 7: Post Implementation Analysis Completed by June 30, 2026 DocuSign Envelope ID: BCEF7477-3F46-4D42-A6C7-55715CAE3E7A Item 7 Attachment A - S21180224 Amendment No.1 - Matrix Consulting Group        Item 7: Staff Report Pg. 7  Packet Pg. 107 of 318  Vers.: Aug. 5, 2019 Page 5 of 8 EXHIBIT C COMPENSATION, AMENDMENT NO. 1 (AMENDED, REPLACES PREVIOUS) The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation can also be calculated based on the hourly rate schedule attached as exhibit C-1 up to the not to exceed budget amount for each task set forth below. CONSULTANT shall perform the tasks and categories of work as outlined and budgeted below. The CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation for Basic Services, including reimbursable expenses, and the total compensation for Additional Services do not exceed the amounts set forth in Section 4 of this Agreement. The compensation to be paid to CONSULTANT under this Agreement for all services, additional services, and reimbursable expenses shall not exceed the amount(s) stated in Section 3 of this Agreement. CONSULTANT agrees to complete all Services and Additional Services, including reimbursable expenses, 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: Research 0 2 2 $500 Comparative Survey 2 0 20 $2,350 Use of City Software 2 2 0 $650 Deferred Revenue Procedures Review 4 8 8 $2,700 Comparative Survey 2 16 $2,800 Deferred Revenue Procedures Review 2 4 10 $2,800 Subtotal Task 1 10 20 56 $11,800 Subtotal Task 1 Additional Services (Contingency) $1,550 Kickoff Meeting 2 2 2 $850 Staff Interviews (Data Workshops) 0 12 0 $1,800 Stakeholder Presentations 2 2 0 $650 Staff Training 0 4 6 $1,200 DocuSign Envelope ID: BCEF7477-3F46-4D42-A6C7-55715CAE3E7A Item 7 Attachment A - S21180224 Amendment No.1 - Matrix Consulting Group        Item 7: Staff Report Pg. 8  Packet Pg. 108 of 318  Vers.: Aug. 5, 2019 Page 6 of 8 Subtotal Task 2 12 44 16 $12,500 Subtotal Task 2 Additional Services (Contingency) $1,125 Task 3: Flat Fees Amendment No. 1 Subtotal Task 3 22 108 130 $38,000 Subtotal Task 3 Additional Services (Contingency) $5,250 Task 4: Valuation-Based Fees 12 38 52 $13,000 Amendment No. 1 4 16 36 $9,600 Subtotal Task 4 16 54 88 $22,600 Subtotal Task 4 Additional Services (Contingency) $3,250 Task 5: Deposit-Based Fees Amendment No. 1 Subtotal Task 5 4 16 14 $4,500 Subtotal Task 5 Additional Services (Contingency) $875 Task 6: Report & Template Creation Amendment No. 1 DocuSign Envelope ID: BCEF7477-3F46-4D42-A6C7-55715CAE3E7A Item 7 Attachment A - S21180224 Amendment No.1 - Matrix Consulting Group        Item 7: Staff Report Pg. 9  Packet Pg. 109 of 318  Vers.: Aug. 5, 2019 Page 7 of 8 Subtotal Task 6 24 58 84 $25,200 Subtotal Task 6 Additional Services (Contingency) $3,000 Task 7: Post Implementation Analysis 4 14 22 $5,000 Subtotal Task 7 Additional Services (Contingency $1,250 $65,200 $56,500 $0.00 $121,700 $16,300 $138,000 REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance, and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are: $0.00 All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense anticipated to be more than $500.00 shall be approved in advance by the CITY’s project manager. ADDITIONAL SERVICES The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY’s project manager’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT’s proposed maximum compensation, including reimbursable expenses, for such services based on the rates set forth in Exhibit C-1. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY’s Project Manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement. DocuSign Envelope ID: BCEF7477-3F46-4D42-A6C7-55715CAE3E7A Item 7 Attachment A - S21180224 Amendment No.1 - Matrix Consulting Group        Item 7: Staff Report Pg. 10  Packet Pg. 110 of 318  Vers.: Aug. 5, 2019 Page 8 of 8 EXHIBIT C-1 SCHEDULE OF RATES, AMENDMENT NO. 1 (ADDED, AMENDED, REPLACES PREVIOUS) CONSULTANT’s schedule of rates is as follows: Original Contract Rates: Amendment No. 1 Rates CITY and CONSULTANT may at any time, during the duration of contract, mutually agree to add new position titles, rates, and adjust listed rates so long as the changes do not increase the not to exceed amount as noted in Section 3 of this Amendment No. 1. Position Rate Position Rate DocuSign Envelope ID: BCEF7477-3F46-4D42-A6C7-55715CAE3E7A Item 7 Attachment A - S21180224 Amendment No.1 - Matrix Consulting Group        Item 7: Staff Report Pg. 11  Packet Pg. 111 of 318  City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Transportation Meeting Date: February 26, 2024 Report #:2401-2548 TITLE Approve and Authorize the City Manager to Execute a Funding Agreement with the Valley Transportation Authority (VTA) to Accept a $250,000 Grant as part of the 2010 Measure B Vehicle Registration Fee (VRF) Countywide Program Cycle Four; CEQA status – Statutorily Exempt. RECOMMENDATION Staff recommends that Council approve and authorize the City Manager or their designee to enter a funding agreement with the Valley Transportation Authority (VTA) on behalf of the City of Palo Alto to Accept $250,000 as part of the 2010 Measure B Vehicle Registration Fee (VRF) Countywide Program Cycle Four. EXECUTIVE SUMMARY The VTA manages and allocates funds from Santa Clara County’s VRF Program. Through a competitive application process, the City of Palo Alto’s Traffic Signal and Intelligent Transportation Systems project (PL-05030) for Quarry Road was selected to receive a grant of $250,000 toward completion of the project which would include replacement of aging traffic signal equipment to comply with current standards, and to implement signal timing optimization along the Quarry Road corridor. BACKGROUND Senate Bill 83 (Hancock), signed into law in 2009, authorized countywide transportation agencies such as the Santa Clara Valley Transportation Authority (VTA) to implement a Vehicle Registration Fee (VRF) of up to $10 on motor vehicles registered within the county to pay for transportation programs and projects. The City of Palo Alto has a continuous need to maintain, operate, and optimize operations of traffic signals. Quarry Road, between Welch Road and El Camino Real, in particular has aging equipment such as traffic signal cabinets, detection systems and pedestrian push buttons. In Item 8 Item 8 Staff Report        Item 8: Staff Report Pg. 1  Packet Pg. 112 of 318  addition, signal timing has not been optimized on this corridor in many years. In recent years, substantial projects to improve the Stanford Medical Center, Stanford Shopping Center, and Quarry Road itself have occurred however the traffic signals at each of the intersections between El Camino Real and Vineyard Road have not been updated as part of these efforts. The signalized intersections along Quarry Road are in need of updates and are currently included with anticipated traffic signal improvements efforts over the next several years. This ITS project is not to be confused with the ongoing work with Stanford on Quarry Road improvements for Transit Center access, as this project does not include the Quarry Road and El Camino Real Intersection. ANALYSIS FISCAL/RESOURCE IMPACT STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW Item 8 Item 8 Staff Report        Item 8: Staff Report Pg. 2  Packet Pg. 113 of 318  ATTACHMENTS APPROVED BY: Item 8 Item 8 Staff Report        Item 8: Staff Report Pg. 3  Packet Pg. 114 of 318  1 FUNDING AGREEMENT This Agreement (“Funding Agreement”) between the City of Palo Alto, a California municipal corporation, (“GRANTEE”), and the SANTA CLARA VALLEY TRANSPORTATION AUTHORITY, a public agency, ("VTA") is made as of the date of final execution by each party hereto. A.Whereas, in November of 2010, the voters of Santa Clara County authorized a TEN DOLLAR ($10) increase in the Vehicle Registration Fee (“VRF”), referred to hereinafter as the “PROGRAM,” for transportation-related projects and adopted an expenditure plan which allocates the revenue to transportation-related programs and projects that have a relationship or benefit to the persons who pay the fee; and B.Whereas, the VTA Board of Directors has adopted administrative procedures for the PROGRAM; and C.Whereas, these administrative procedures state that VTA will execute program funding agreements with project grantees; and D.Whereas, the PROGRAM includes a “Countywide Program” that includes Intelligent Transportation System (ITS) technologies as an eligible project category; and E.Whereas, on November 2, 2023, the VTA Board approved VRF ITS funds for the City of Palo Alto ‐ Quarry Road ITS Upgrade and Optimization s (PROJECT); and F.Whereas, each party hereto (“Party”) desires to specify the terms and conditions under which VRF-ITS project grants are conducted and financed. in consideration of the mutual promises contained herein, each Party (collectively referred to as the “Parties”) agrees as follows: VTA hereby agrees to allocate to GRANTEE, a grant (“Grant”) in an amount not to exceed two hundred fifty thousand DOLLARS ($250,000) (“Maximum Grant Amount”). Said grant is provided to GRANTEE in return for GRANTEE’s agreement to implement the “PROJECT.” The use of PROJECT funds is for procurement and implementation of traffic signal hardware and automated traffic signal performance measures to improve operations on Quarry Road (between Palo Road and Welch Road) corridor, including the City’s staff support that should not exceed 10% of the Maximum Grant Amount. Approved PROJECT elements and costs are shown on Table 1 of Exhibit A attached hereto and incorporated by reference. Item 8 Attachment A - VRF Funding Agreement        Item 8: Staff Report Pg. 4  Packet Pg. 115 of 318  2 2. Term. The term of this Funding Agreement shall commence on the Effective Date (defined as the last execution date in the signature block below) and shall continue until the earlier of: (i) the date that the Project is completed or terminated; or (ii) 5:00 pm (Pacific Time) on December 31, 2025. 3. Invoicing and Payment. 4. Naming of Project Liaison. Prior to execution of this Funding Agreement, GRANTEE shall notify VTA of the name of the GRANTEE’s PROJECT liaison (the “Liaison”) and of the Liaison’s address, telephone number and email address. The Liaison shall be the liaison to VTA pertaining to implementation of this Funding Agreement and shall be the contact for information about the PROJECT. GRANTEE shall notify VTA in writing of any change of Liaison or of the Liaison’s contact information. Where possible such notification shall be delivered to VTA no later than thirty (30) days prior to the date of any change. Item 8 Attachment A - VRF Funding Agreement        Item 8: Staff Report Pg. 5  Packet Pg. 116 of 318  3 5. Maintenance of Records. GRANTEE shall maintain PROJECT financial records, books, documents, papers, accounting records and other evidence pertaining to costs for five (5) years after the PROJECT’s completion. GRANTEE shall make such records available to VTA upon request for review and audit purposes. Financial audits will be performed at VTA’s discretion. VTA will notify GRANTEE in writing in advance of any audit or other PROJECT review. 6. Credit of Funding Contribution. GRANTEE shall include a reference to VTA’s funding contribution on all signage, electronic or printed materials related to the PROJECT that are distributed to the public. VTA shall provide a copy of VTA logos to GRANTEE for use in complying with the requirements of this provision, 7. Indemnities. 8. Changes to Terms of Agreement. No amendment, alteration or variation of the terms of this Funding Agreement shall be valid unless made in writing and signed by both of the parties hereto and no oral understanding or agreement not incorporated herein shall be binding on any of the parties hereto. 9.Entire Agreement. This Funding Agreement represents the full and complete understanding of the Parties with respect to the PROJECT. Any prior or contemporaneous oral or written agreements by and between the Parties or their agents and representatives with respect to the subject matter of this Funding Agreement are revoked and extinguished hereby. Item 8 Attachment A - VRF Funding Agreement        Item 8: Staff Report Pg. 6  Packet Pg. 117 of 318  4 10. Assignment. GRANTEE shall not assign this Funding Agreement without the prior written authorization of the VTA. Any assignment made in the absence of such authorization shall be deemed void ab initio and without legal effect. 11. Binding on Successors and Assigns. This Funding Agreement shall be binding upon each Party and any of its successors and/or permitted assigns. 12. Notices. Each Party shall give any notice which may be required under this Funding Agreement in writing. Such notice shall be effective when received, and shall be given by personal service, by the U.S. Postal Service or by certified mail, to the addresses set forth below, or to such addresses which may be specified in writing by the Parties hereto. To VTA: To GRANTEE: st Street Address250 Hamilton Avenue 13. Signature Authority. Each Party to this Funding Agreement represents and warrants that each person whose signature appears hereon has been duly authorized and has the full authority to execute this Funding Agreement on its behalf. 14. Strict Performance. The failure of either Party to insist upon the strict performance of any of the terms, covenants and conditions of this Funding Agreement shall not be deemed a waiver of any right or remedy that either Party may have, and shall not be deemed a waiver of their right to require strict performance of all of the terms, covenants, and conditions thereafter. 15. Dispute Resolution. If a question arises regarding interpretation of this Funding Agreement or its performance, or the alleged failure of a Party to perform, the Party raising the question or making the allegation shall give written notice thereof to the other Party. The Parties shall promptly meet in an effort to resolve the issues raised. If the Parties fail to resolve the issues raised, alternative forms of dispute resolution, including mediation, may be pursued by mutual agreement. It is the intent of the Parties to the extent possible that litigation be avoided as a method of dispute resolution. 16. Choice of Law; Venue. This Funding Agreement shall be construed and its performance enforced under California law. In the event that suit shall be brought by either Party to this Funding Agreement, the Parties agree that venue shall be exclusively vested in the State courts of the County of Santa Clara or, if federal jurisdiction is appropriate, exclusively in the United States District Court for the Northern District of California, in San José, California. Item 8 Attachment A - VRF Funding Agreement        Item 8: Staff Report Pg. 7  Packet Pg. 118 of 318  5 17. Interpretation of this Funding Agreement. The Parties hereto acknowledge and agree that, although this Funding Agreement was originally drafted by VTA’s legal counsel, GRANTEE and its legal counsel have reviewed and negotiated the terms of this Funding Agreement with the VTA. Consequently, the doctrine that ambiguities in an agreement should be resolved against the drafting party shall not be employed in connection with this Funding Agreement, which shall be interpreted in accordance with its fair meaning. 18. Counterparts. This Funding Agreement may be executed in one or more counterparts, all of which taken together shall constitute one and the same instrument. Signatures of Parties on following page. Item 8 Attachment A - VRF Funding Agreement        Item 8: Staff Report Pg. 8  Packet Pg. 119 of 318  6 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date shown below: CITY OF PALO ALTO (GRANTEE) SANTA CLARA VALLEY TRANSPORTATION AUTHORITY (VTA) Item 8 Attachment A - VRF Funding Agreement        Item 8: Staff Report Pg. 9  Packet Pg. 120 of 318  7 Exhibit A Project Element No. of Units Cost per Unit Total Cost Palo Alto APS Push Buttons at Intersections 4 $ 7,000 $ 28,000 Video Detection at Intersections 4 $ 25,000 $ 100,000 Traffic Signal Controller 4 $ 9,000 $ 36,000 Traffic Signal Controller Cabinet 4 $ 9,000 $ 36,000 ATSPM 2 $ 5,000 $ 10,000 Labor L.S. $ 40,000 $ 40,000 Subtotal $ 250,000 Item 8 Attachment A - VRF Funding Agreement        Item 8: Staff Report Pg. 10  Packet Pg. 121 of 318  2 9 0 1 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Planning and Development Services Meeting Date: February 26, 2024 Report #:2402-2615 TITLE Approve Two Contracts for Consultant Services for the Downtown Housing Plan: Contract Number C24187236 with Wallace Roberts & Todd, LLC (WRT) for a Not-to Exceed Amount of $1,508,254 to Provide Planning and Consulting Services to Develop the City’s Downtown Housing Plan for a Term of Two-years with an Optional One-year Extension; and Contract Number C24187237 with Good City Company (Good City) for a Not-to Exceed Amount of $375,522 to Provide Project Management and Consulting Services for the City’s Downtown Housing Plan for a Term of Two-years with an Optional One-year Extension. CEQA Action: Agreements are not subject to CEQA RECOMMENDATION Staff recommends that the City Council: 1. Approve and authorize the City Manager or their designee to execute Contract No. C24187236 with Wallace Roberts & Todd, LLC (WRT) for a not-to exceed amount of $1,508,254 to provide planning and consulting services for the Downtown Housing Plan for a term of two-years with an optional one-year extension; and 2. Approve and authorize the City Manager or their designee to execute Contract No. C24187237 with Good City Company (Good City) for a not-to exceed amount of $375,522 to provide project management and consulting services for the Downtown Housing Plan for a term of two years with an optional one-year extension. EXECUTIVE SUMMARY The City completed two Request for Proposals (RFP) processes in 2023 related to development of the City’s Downtown Housing Plan (DHP) and selected firms to provide professional services. The City selected Good City to provide project management assistance in March, 2023. WRT was selected in April, 2023 to develop the DHP. Staff recommends the City Council enter into two- year contracts, with optional one-year extensions, with: 1. WRT for $1,508,254 Item 9 Item 9 Staff Report        Item 9: Staff Report Pg. 1  Packet Pg. 122 of 318  2 9 0 1 2. Good City for $375,522 The City was awarded a $800,000 grant from the Metropolitan Transportation Commission (MTC) to create a housing plan within the University Avenue/downtown Priority Development Area (PDA). The Downtown Housing Plan (DHP) will focus on housing production in the Downtown, including affordable housing, and will implement policies from the City’s Comprehensive Plan and Housing Element. Community engagement will be key to the success of the planning effort, as will technical, design, and planning work by qualified consultants funded by the grant. Staff identified that additional assistance in the form of a consultant project manager would be necessary to advance the DHP in a timely manner. During the Fiscal Year 2023 adopted budget, Council approved consultant project management funding in the amount of $150,000 annually for four years through FY 2026, totaling $600,000. During the Fiscal Year 2024 adopted budget, Council also approved $500,000 for consultant preparation of the DHP based on request for proposals responses indicating additional funding would be required. Total funding in the amount of $1.9 million has been approved for plan development and project management. BACKGROUND On April 18, 2022, the City Council accepted an $800,000 PDA Planning Grant for the proposed DHP.1 In doing so, the City Council also acknowledged that a consultant project manager would be necessary to carry out the project. In contrast to recent area plans, the project manager component enables the DHP to be a consultant led effort intended to keep the timeline on track. Maintaining the project timeline is important to ensure the PDA grant deliverables are completed within the allocated timeframe. Downtown Housing Plan Goals and Objectives The DHP covers approximately 76 acres and is a sub-area of the University Avenue/PDA. Consistent with the requirements of the PDA Planning Grant, the DHP will need to evaluate key elements. The DHP will build off work completed as part of the adopted 2023-2031 Housing Element and create a focused housing plan for the downtown by identifying development standards, design standards, and public infrastructure necessary to accelerate housing production. The DHP also has the objective of affirmatively furthering fair housing, which is a requirement of the grant. The DHP preparation will require extensive community and business outreach and participation, including facilitation of a Community Working Group. The Working Group will serve an advisory role making recommendations at key junctures in the project (e.g., prior to community outreach, or to review the draft plan). DHP preparation also involves coordination with regional and local stakeholders, such as housing advocates, business leaders, the County, Stanford University, 1 April 18, 2022 City Council Staff Report: https://www.cityofpaloalto.org/files/assets/public/agendas-minutes- reports/agendas-minutes/city-council-agendas-minutes/2022/20220418/20220418pccsmamended- linked.pdf#page=68 Item 9 Item 9 Staff Report        Item 9: Staff Report Pg. 2  Packet Pg. 123 of 318  2 9 0 1 Caltrans, Santa Clara Valley Transportation Authority (VTA), Palo Alto Unified School District, and the Santa Clara Valley Water District. Downtown Housing Plan Elements •Project Management and Coordination •Community Outreach and Engagement •Community Assessment and Policy Development •Downtown Housing Plan Preparation ANALYSIS Item 9 Item 9 Staff Report        Item 9: Staff Report Pg. 3  Packet Pg. 124 of 318  2 9 0 1 Table 1: Summary of RFP Rebid Process for Primary Consultant Proposal Description Proposed Length of Project 3-year term Number of Vendors Notified 1,131 Number of Proposal Packages Downloaded 20 Total Days to Respond to Proposal 43 Pre-Proposal Meeting No Pre-Proposal Meeting Date NA Number of Proposals Received 2 Proposal Price Range $799,555 - $1.3M Public Link to Solicitation https://pbsystem.planetbids.com/portal/25569/bo/bo- detail/102543# An evaluation committee of staff from the Planning and Development Services department reviewed the two proposals. WRT provided a comprehensive proposal that specifically addressed all the elements of the RFP and showed high engagement in the DHP development. WRT met all the evaluation criteria and was selected for: 1) their experience with similar jurisdictions; 2) their team’s comprehensive approach, comprehensive knowledge and application of public engagement and housing issues; and 3) meeting the objectives of the MTC grant. The second proposal, although lower in cost, did not adequately address the specific needs outlined in RFP requirements and did not have level of detail demonstrated in the WRT proposal. For additional details on the services to be provided by WRT, please see Attachment A. The DHP has the following main components: •Task 1 — Project Management and Coordination •Task 2 — Community Outreach and Engagement •Task 3 — Community Assessment and Policy Development •Task 4 — Downtown Housing Plan Document Various sub-tasks necessary to complete the main components are detailed more extensively in the contract’s scope of services, Exhibit A in the attached contract. This scope of work is similar to the scope of work included as the Supplement Agreement No. 1 to the Master Agreement with MTC (approved by the Council in April, 2022). Project Management Another aspect of the work plan is to seek a consultant project manager to ensure that the DHP progresses in accordance with the scope of work and grant requirements. The City Council has Item 9 Item 9 Staff Report        Item 9: Staff Report Pg. 4  Packet Pg. 125 of 318  2 9 0 1 budgeted $150,000 a year for up to four years for this effort. Table 2: Summary of Request for Proposal for Project Manager Proposal Description RFP 187237 Downtown Palo Alto Housing Master Plan Project Manager 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 •Task 1 — Project Management and Communications •Task 2 — Document Review Coordination •Task 3 — Meetings Item 9 Item 9 Staff Report        Item 9: Staff Report Pg. 5  Packet Pg. 126 of 318  2 9 0 1 The DHP contracts would have a two-year timeline that coincides with the PDA Planning Grant. MTC has indicated that a one-year extension can be granted. The contracts include a third year optional extention in the event of a project delay. The project is intended to be completed within the allocated timeline to ensure all deliverables associated with the grant (including adoption of the DHP) are reimbursable. If the timeline is exceeded or the scope is expanded, consultant costs would also increase. These factors could require additional General Fund allocations to complete the project. As a result, in contrast to recent area plan projects like the North Ventura Coordinated Area Plan, the DHP in structured as a consultant driven project led by the consultant project manager to maintain the timeline. POLICY IMPLICATIONS 2 The project would assist the City in implementing components of the 2023-2031 Housing Element, including programs 1.4: City-Owned Land Lots, 3.9: Conversion Of Commercial Uses To Mixed-Use Development, and Program 6.6: Fair Housing. FISCAL/RESOURCE IMPACT 2 April 18, 2022 City Council Action Meeting Minutes: https://www.cityofpaloalto.org/files/assets/public/agendas- minutes-reports/agendas-minutes/city-council-agendas-minutes/2022/20220411/20220411amccs.pdf Item 9 Item 9 Staff Report        Item 9: Staff Report Pg. 6  Packet Pg. 127 of 318  2 9 0 1 and contract was adjusted from the initial proposal to include additional stakeholder engagement and a 10 percent contingency. For project management, staff anticipates $150,000 is needed annually for the duration of the project over a two- to three-year period. Any further budget allocations would be a part of the annual or mid-year budget process. Combined with the project manager budget, the total consultant budget is estimated to be $1,883,776. Of that amount, between $950,000 and $1,100,000 would be funded by the City with the balance covered by the PDA Planning Grant. No additional resources are requested at this time given previously approved funding. STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Item 9 Item 9 Staff Report        Item 9: Staff Report Pg. 7  Packet Pg. 128 of 318  Professional Services Rev. Dec.15, 2020 Page 1 of 43 CITY OF PALO ALTO CONTRACT NO. C24187236 AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF PALO ALTO AND WALLACE ROBERTS & TODD, LLC This Agreement for Professional Services (this “Agreement”) is entered into as of the 26th day of January, 2024 (the “Effective Date”), by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and WALLACE ROBERTS & TODD, LLC a Pennsylvania corporation, located at 260 S. Board Street, Philadelphia, PA 19102 (“CONSULTANT”). The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this reference: RECITALS A. CITY intends to create a Downtown Housing Plan (the “Project”) and desires to engage a consultant to provide project management and coordination, community outreach and engagement, community assessment and policy development, and document development 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. CITY will issue a Task Order assigned and approved by CITY’s Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in 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. 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 due to CONSULTANT for all Task Orders issued under this Agreement shall not exceed the amount of compensation set forth DocuSign Envelope ID: 13C137BC-9E36-4011-A965-D62E2DB08DF7 Item 9 Attachment A - PA Dwntwn Housing Plan Contract, C24187236        Item 9: Staff Report Pg. 8  Packet Pg. 129 of 318  Professional Services Rev. Dec.15, 2020 Page 2 of 43 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 amoun t 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 December 31, 2026, 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. SUBCONSULTANT shall not be responsible for any delays in the project resulting from circumstances beyond the SUBCONSULTANT’s reasonable control nor shall SUBCONSULTANT be deemed to be in default of this Agreement for same. 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 Three Hundred Seventy One Thousand and One Hundred Forty Dollars ($1,371,140). 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 Thirty-Seven Thousand and One Hundred Fourteen Dollars ($137,114) 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 Five Hundred Eight Thousand and Two Hundred Fifty-Four Dollars ($1,508,254), 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, DocuSign Envelope ID: 13C137BC-9E36-4011-A965-D62E2DB08DF7 Item 9 Attachment A - PA Dwntwn Housing Plan Contract, C24187236        Item 9: Staff Report Pg. 9  Packet Pg. 130 of 318  Professional Services Rev. Dec.15, 2020 Page 3 of 43 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. All invoices shall be submitted to the Planning Department’s contract email account at PCEContracts@cityofpaloalto.org to ensure timely payment. 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 DocuSign Envelope ID: 13C137BC-9E36-4011-A965-D62E2DB08DF7 Item 9 Attachment A - PA Dwntwn Housing Plan Contract, C24187236        Item 9: Staff Report Pg. 10  Packet Pg. 131 of 318  Professional Services Rev. Dec.15, 2020 Page 4 of 43 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 will apply to, and will bind, the heirs, successors, executors, administrators and assignees of the parties. SECTION 12. SUBCONTRACTING. Subcontracts Authorized: Notwithstanding Section 11 (Assignment) above, CITY agrees that new (not listed) subcontractors may be used to complete the Services only with prior approval, DocuSign Envelope ID: 13C137BC-9E36-4011-A965-D62E2DB08DF7 Item 9 Attachment A - PA Dwntwn Housing Plan Contract, C24187236        Item 9: Staff Report Pg. 11  Packet Pg. 132 of 318  Professional Services Rev. Dec.15, 2020 Page 5 of 43 documented in writing, including scope of services, cost, and duration. The use of new subconsultant cannot increase compensation as noted in Section 4. The subcontractors authorized by CITY to perform work on this Project , at the beginning of this Agreement are: Consensus Building Institute, Strategic Economics, CSW | ST2, and David J Powers & Associates. 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 Poonam Narkar, Telephone: 415-363-0438, Email: pnarkar@wrtdesign.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. 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 Coleman Frick, Planning and Development Services Department, 250 Hamilton Ave. Palo Alto, CA, 94301 Telephone: 650-838-2821, Email: coleman.frick@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 DocuSign Envelope ID: 13C137BC-9E36-4011-A965-D62E2DB08DF7 Item 9 Attachment A - PA Dwntwn Housing Plan Contract, C24187236        Item 9: Staff Report Pg. 12  Packet Pg. 133 of 318  Professional Services Rev. Dec.15, 2020 Page 6 of 43 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, i ts 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 DocuSign Envelope ID: 13C137BC-9E36-4011-A965-D62E2DB08DF7 Item 9 Attachment A - PA Dwntwn Housing Plan Contract, C24187236        Item 9: Staff Report Pg. 13  Packet Pg. 134 of 318  Professional Services Rev. Dec.15, 2020 Page 7 of 43 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 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). DocuSign Envelope ID: 13C137BC-9E36-4011-A965-D62E2DB08DF7 Item 9 Attachment A - PA Dwntwn Housing Plan Contract, C24187236        Item 9: Staff Report Pg. 14  Packet Pg. 135 of 318  Professional Services Rev. Dec.15, 2020 Page 8 of 43 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. 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. DocuSign Envelope ID: 13C137BC-9E36-4011-A965-D62E2DB08DF7 Item 9 Attachment A - PA Dwntwn Housing Plan Contract, C24187236        Item 9: Staff Report Pg. 15  Packet Pg. 136 of 318  Professional Services Rev. Dec.15, 2020 Page 9 of 43 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 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 DocuSign Envelope ID: 13C137BC-9E36-4011-A965-D62E2DB08DF7 Item 9 Attachment A - PA Dwntwn Housing Plan Contract, C24187236        Item 9: Staff Report Pg. 16  Packet Pg. 137 of 318  Professional Services Rev. Dec.15, 2020 Page 10 of 43 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. 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 DocuSign Envelope ID: 13C137BC-9E36-4011-A965-D62E2DB08DF7 Item 9 Attachment A - PA Dwntwn Housing Plan Contract, C24187236        Item 9: Staff Report Pg. 17  Packet Pg. 138 of 318  Professional Services Rev. Dec.15, 2020 Page 11 of 43 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 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. DocuSign Envelope ID: 13C137BC-9E36-4011-A965-D62E2DB08DF7 Item 9 Attachment A - PA Dwntwn Housing Plan Contract, C24187236        Item 9: Staff Report Pg. 18  Packet Pg. 139 of 318  Professional Services Rev. Dec.15, 2020 Page 12 of 43 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 SUBCONSULTANT shall not be responsible for delays caused by factors beyond its reasonable control, including but not limited to delays because of strikes, lockouts, work slowdowns or stoppages, government ordered industry shutdowns, power or server outages, acts of nature, widespread infectious disease outbreak (including, but not limited to epidemics and pandemics), failure of any governmental or other regulatory authority to act in a timely manner, failure of CONSULTANT or the CITY to furnish timely information or approve or disapprove of SUBCONSULTANT’s services or work product, or delays caused by the faulty performance of CONSULTANT or the CITY or by SUBCONSULTANT of any level. When such delays beyond SUBCONSULTANT’s reasonable control occur, CITY agrees that SUBCONSULTANT shall not be responsible for damages, nor shall SUBCONSULTANT be deemed in default of this Agreement. 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 THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS ARE ATTACHED. DocuSign Envelope ID: 13C137BC-9E36-4011-A965-D62E2DB08DF7 Item 9 Attachment A - PA Dwntwn Housing Plan Contract, C24187236        Item 9: Staff Report Pg. 19  Packet Pg. 140 of 318  Professional Services Rev. Dec.15, 2020 Page 13 of 43 CONTRACT No. SXXXXXX 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 CONSULTANT WALLACE ROBERTS & TODD, LLC Officer 1 By: Name: James K. Stickley Title: Vice President jstickley@wrtdesign.com Officer 2 By: Name: Joseph W. Healy Title: Chairman and President jhealy@wrtdesign.com DocuSign Envelope ID: 13C137BC-9E36-4011-A965-D62E2DB08DF7 Item 9 Attachment A - PA Dwntwn Housing Plan Contract, C24187236        Item 9: Staff Report Pg. 20  Packet Pg. 141 of 318  Professional Services Rev. Dec.15, 2020 Page 14 of 43 EXHIBIT A SCOPE OF SERVICES CONSULTANT shall provide the Services detailed in this Exhibit A, entitled “SCOPE OF SERVICES”. TASK 1 – PROJECT MANAGEMENT AND COORDINATION This task outlines the primary project management and coordination tasks necessary for the Downtown Housing Plan. CONSULTANT will be the main point of contact and provide project management and day-to-day coordination throughout the Downtown Housing Plan preparation process. Task 1.1 – CITY Inter-Departmental Coordination including a weekly check-in meeting. CONSULTANT will facilitate a kick-off meeting with CITY staff and CONSULTANT team to finalize work scope and project schedule. The kick-off meeting will include a discussion of project goals, key challenges, data needs, and project protocols. The kick-off meeting will include a walk audit of the project area with CITY staff and the CONSULTANT team to conduct a visual survey and photo documentation of the site and to understand assets, issues, and challenges of the project area. CONSULTANT will work with the CITY’s project manager to schedule weekly check-in meetings with CITY staff and key personnel for on-going coordination and provide regular project updates review project status, milestones and project needs and concerns. The weekly check-in meetings will be scheduled to be one hour long. CONSULTANT will work closely with relevant CITY departments such as Planning, Economic Development, Transportation, and Public Works to ensure that issues are well understood, and recommendations are vetted before presenting to the Technical Advisory Committee, Community Working Group, or the public. Task 1.1 Deliverable: • Prepare memos for CITY Inter-Departmental Coordination, as necessary. • Scheduling and facilitation of virtual weekly check-in meetings (assuming a 30-month schedule) • Agendas for weekly check-in meetings. • Have key personnel attend weekly check-in meetings. • Kick-off meeting facilitation, meeting materials, and meeting notes. Task 1.2 – Communications, Website, and Media Coordination (social media, etc.) In accordance with CITY procedures, the project will use the CITY’s website. CONSULTANT will coordinate with the CITY’s Office of Communications to establish communications protocol for the project, finalize project branding at the onset, review messaging and public information about the project before rolling out to the public, and working on a communications plan for outreach and publicity of community engagement activities through the CITY’s media DocuSign Envelope ID: 13C137BC-9E36-4011-A965-D62E2DB08DF7 Item 9 Attachment A - PA Dwntwn Housing Plan Contract, C24187236        Item 9: Staff Report Pg. 21  Packet Pg. 142 of 318  Professional Services Rev. Dec.15, 2020 Page 15 of 43 channels. Task 1.2 Deliverable: • Coordination with CITY’s Office of Communications. • Prepare memos and materials for Communications. • Project Communication Plan • Media Coordination with City Manager’s Office for social media tools. Task 1.3 – Project Set-up and Administration CONSULTANT will set-up project protocols regarding communication, file sharing, invoicing, etc. to share with the CONSULTANT team and CITY staff. CONSULTANT will develop a list of requested project data to be provided by CITY Staff, including relevant plans, reports, and GIS data. CONSULTANT will create and maintain a shared project drive (Microsoft SharePoint) for use throughout the duration of the planning process, where team members may easily upload data and share information. CONSULTANT will set up base maps, document templates and a repository of relevant background information for team use. CONSULTANT will provide monthly invoices following templates and protocols provided by staff. Task 1.3 Deliverable: • SUBCONSULTANT coordination and management of deliverables, invoicing, and project administration. • Project protocols, and file-sharing platform. TASK 2 – COMMUNITY OUTREACH AND ENGAGEMENT This task outlines the primary community outreach and engagement for the Downtown Housing Plan. These activities will be active throughout the Downtown Housing Plan preparation process. CONSULTANT understands the importance of engaging stakeholders and the community early in the process and maintaining on-going transparent communication to provide project updates and gather feedback. CONSULTANT is committed to meaningful equitable engagement and bring expertise with a wide array of methods, both digital and in-person. CONSULTANT will partner with SUBCONSULTANT Consensus Building Institute (CBI) which brings extensive experience in facilitating complex conversations around land use policy, and outreach techniques to ensure representation of diverse interest groups and stakeholders. While CONSULTANT will remain the overall lead of the Outreach and Engagement task, SUBCONSULTANT CBI will lead the charge of stakeholder assessment, facilitating Community Working Group meetings, and will provide strategic facilitation at other meetings and engagement activities. Task 2.1 – Community Outreach and Engagement Strategy Development This task encompasses CITY staff and CONSULTANT preparation of the Downtown Housing Plan community outreach and engagement strategy. Throughout the Downtown Housing Plan process, it is central to gather meaningful input from a full range of stakeholders within and nearby to the planning area, including residents of all incomes, races and ethnic backgrounds, employees of local businesses, community- and faith-based organizations, and public agencies providing services in the area. This task will include laying out the specific engagement DocuSign Envelope ID: 13C137BC-9E36-4011-A965-D62E2DB08DF7 Item 9 Attachment A - PA Dwntwn Housing Plan Contract, C24187236        Item 9: Staff Report Pg. 22  Packet Pg. 143 of 318  Professional Services Rev. Dec.15, 2020 Page 16 of 43 meetings, outreach channels, and methods listed in tasks 2.2 through 2.5. Equity assessment information from the Housing Element process will inform the Community Outreach and Engagement Strategy. CONSULTANT and SUBCONSULTANT CBI will collaborate with CITY staff to prepare a Community Outreach and Engagement Strategy. The outreach and engagement strategy will describe the goals, objectives, and approach to community outreach and engagement. It will further describe the methods and approach to convening the Community Working Group (Task 2.2), its composition and purpose. The strategy will describe the purpose, goals, and topics for target outreach to hard-to-reach groups, community workshops and charrettes. It will further define the communication tools and media strategy, including on-line, digital engagement. Finally, it will outline a schedule of community engagement activities. The final outreach and engagement strategy will be informed by assessment findings and recommendations as described in Task 2.4. and will ensure that it meets the needs of tasks 3.2.1 through 3.2.4. Task 2.1 Deliverable: • Prepare Draft and Final Outreach and Engagement Strategy Task 2.2 - Community Working Group Meetings (up to six meetings) This task encompasses convening of a Community Working Group that will shape the Downtown Housing Plan and review draft plan materials at key milestones in the process. CITY staff plans to hold three (3) to six (6) Working Group meetings during the planning process. CITY staff anticipate the CITY will solicit applications and the City Council will select a group that is representative of residents, housing developers, local businesses, community-based organizations, service providers, and other stakeholders. The Community Working Group will review and provide feedback on milestone draft plan materials. These meetings are anticipated to be 2 to 3 hours in length. The stakeholder assessment is an important vehicle to conducting outreach to diverse stakeholders and to engage them in the project. SUBCONSULTANT CBI will lead this task and will work with City staff to prepare an initial list of stakeholders to reach. Through interviews and survey distribution, stakeholders will learn about the opportunity to submit an application for participation in the Community Working Group. To support diverse participation of representative stakeholders, the CONSULTANT and SUBCONSULTANT CBI team will work with the Technical Advisory Group to remove any barriers to participation, including considerations of the location, timing, and potential need for stipends for participation, particularly for key stakeholders that have historically been underrepresented in planning efforts. Upon receipt of applications and selection of committee members, the planning team will work closely with the Technical Advisory Group to craft an invitation letter to selected working group members. Initial meeting with the Community Working Group will focus on: • Clarifying purpose and charge of the Community Working Group • Confirming working group guidelines • Reviewing draft project schedule • Reviewing and providing feedback on outreach and engagement strategy DocuSign Envelope ID: 13C137BC-9E36-4011-A965-D62E2DB08DF7 Item 9 Attachment A - PA Dwntwn Housing Plan Contract, C24187236        Item 9: Staff Report Pg. 23  Packet Pg. 144 of 318  Professional Services Rev. Dec.15, 2020 Page 17 of 43 Overall, the role of the Community Working Group is to review and provide input on draft plan materials and to ultimately shape the Downtown Housing Plan throughout the process. Task 2.2 Deliverables: • Meeting agendas, memos, and associated materials relevant to the meeting, • Presentations, meeting summary briefs • Facilitation of up to six Community Working Group Meetings (2 to 3 hours each meeting) Task 2.3 - Technical Advisory Group Meetings (up to 6 meetings) This task encompasses convening of a technical advisory group that will shape the Downtown Housing Plan. The Technical Advisory Group will provide detailed technical input throughout the Downtown Housing Plan process and help ensure alignment between this plan and other local and regional planning efforts. The composition would include staff from key CITY departments, the ABAG/MTC grant manager, as well as representatives of local, county, and regional agencies, and service providers. The Technical Advisory Group will review and provide feedback on key milestone draft plan materials. These meetings are anticipated to be 2-3 hours in length. The CONSULTANT team will work with the Technical Advisory Group, formed by CITY staff, at key milestones during the project to gather input and inform the Downtown Housing Plan. Since the Technical Advisory Group and the Community Working Group, both will be engaged at the same project milestones for review and feedback on materials, there can be efficiencies in conducting some joint sessions. This will be particularly effective as we envision conducting expert-led discussions on specific topics to build a common understanding of the issues, key concepts, and best practices. We will conduct up to 4 topical discussions which may include any of the following topics. • State Housing Laws, Housing Affordability and Equity • Scale of Infill and Community Character • Parking & Mobility • Downtown Vibrancy and Future of Downtowns Post Pandemic • Climate Adaptation The topics will be finalized in collaboration with City staff, the Technical Advisory Group and the Community Working Group. CONSULTANT will invite regional and national experts to speak on pertinent topics. CONSULTANT or City staff organize the discussions as webinars, which will be uploaded on the project website as an informational resource for the broader community. Task 2.3 Deliverables: • Meeting agendas, memos, and associated materials relevant to the meeting, presentation materials, meeting summary notes. • Attend and facilitate up to six Technical Advisory Group Meetings (2 to 3 hours each meeting) • Up to 4 webinars – organization, facilitation, and recording. DocuSign Envelope ID: 13C137BC-9E36-4011-A965-D62E2DB08DF7 Item 9 Attachment A - PA Dwntwn Housing Plan Contract, C24187236        Item 9: Staff Report Pg. 24  Packet Pg. 145 of 318  Professional Services Rev. Dec.15, 2020 Page 18 of 43 Task 2.4 – Stakeholder Interviews and Stakeholder Surveys Direct outreach through stakeholder interviews and stakeholder surveys to receive information for and feedback on the deliverables from Task 3.2 Key Community Assessment and Policy Development Focus Areas. SUBCONSULTANT CBI and CONSULTANT will partner to conduct a stakeholder assessment by interviewing a representative set of stakeholders to identify key issues and common themes to inform the planning process and the composition of the Community Working Group. This task includes the following steps to prepare for, conduct, and document the outcomes of stakeholder interviews: • The CONSULTANT team will work with the Technical Advisory Group to develop and hone a list of representative stakeholders that address the range of interests related to the project. It will be important to identify stakeholders within the community and those who represent the commuter workforce. • Stakeholder questionnaire and survey: SUBCONSULTANT CBI will prepare a standard interview questionnaire and survey to ensure continuity in the topics discussed and the ability to qualitatively analyze responses. SUBCONSULTANT CBI will provide a draft interview questionnaire and survey to CONSULTANT and staff, and prepare a final document based on refinements. • Gather background information: In preparation for interviews, SUBCONSULTANT CBI will gather and review background materials that pertain directly to the project and the specific interests of key stakeholders. • Conduct interviews with key stakeholders (up to 20 interviews): SUBCONSULTANT CBI will collaborate with CONSULTANT, other team members, and staff to develop an interview invitation letter introducing prospective participants to the project and the planning team and describing the purpose of the interviews. SUBCONSULTANT CBI will schedule and conduct interviews. Interviews will take place via Zoom or in person with individuals or small groups, as deemed appropriate and cost effective. • Distribute survey to broader community: SUBCONSULTANT CBI will adapt the interview questionnaire into an on-line survey and distribute to interested parties and the broader community using communications methods identified in consultation with staff, CWG and TAG. • Synthesis of interview and survey data: Following completion of the interviews and survey, SUBCONSULTANT CBI will prepare a draft synthesis brief with an accompanying PowerPoint Presentation that will be vetted with the TAG and presented to the Community Working Group. The report will distill key issues and concerns, goals, and objectives for the project as well as recommendations for how to proceed with the process. Task 2.4 Deliverable: • Interview questionnaire • Scheduling and conducting stakeholder interviews. • Develop and conduct surveys. DocuSign Envelope ID: 13C137BC-9E36-4011-A965-D62E2DB08DF7 Item 9 Attachment A - PA Dwntwn Housing Plan Contract, C24187236        Item 9: Staff Report Pg. 25  Packet Pg. 146 of 318  Professional Services Rev. Dec.15, 2020 Page 19 of 43 • Analysis and Synthesis of Interview and Survey Data into a draft and final assessment brief and PowerPoint Presentation. Task 2.5 - Community Workshops, Design Charettes, and Digital Engagement (at least 3 meetings) This task includes direct outreach through both in-person and virtual workshops, charettes, and other meetings to receive information for and feedback on the deliverables from Task 3.2 Key Community Assessment and Policy Development Focus Areas. Key topics will include housing, mobility, advancing racial and economic equity, design preferences, and other topics. CONSULTANT will design an engagement format that includes a combination of in-person workshops and virtual engagement activities to ensure greater participation across the community. We envision the following sequence of workshops at key milestones in the project: • Engagement Event #1: Issues, Assets, Opportunities and Constraints (in-person workshop) This workshop will be an opportunity to inform the community about the project scope, share existing conditions analysis and gather feedback on what is currently working downtown, what is not working, what and where are the opportunities to improve, and what are the barriers to improvement. Feedback from this workshop will bring to light key issues to be addressed in the process. CONSULTANT will lead and facilitate the workshop. • Engagement Event #2: Visioning and Concepts Exploration - Project Headquarters at Downtown Storefront CONSULTANT will set up a project headquarters at a vacant storefront, downtown from morning till evening. There will be programmed activities throughout the day. AM Activities: We will conduct a walk audit of the project area, followed by a Community Visioning Session in break-out groups with a facilitator. The discussion will focus on community preferences, priorities, vision, and guiding principles for the project. PM Activities: CONSULTANT will lead a hands-on interactive working session with community members in small break-out groups to explore concepts for topics such as (but not limited to) infill housing, typology and scale, connectivity and mobility, programming, public realm design, development etc. Each group will work with a scaled map and scaled pieces representing different uses and programming. The objective of this exercise is to explore ideas for realizing the vision while navigating trade-offs needed to achieve it. Each group will report back key guiding principles, vision ideas and highlights of their concepts. • Engagement Event #3: Preferred Concept Selection (in-person presentation) CONSULTANT will lead a community meeting to gather input on the Concept Alternatives and arrive at a preferred alternative to include in the Downtown Housing Plan. Task 2.5 Deliverables: • Workshop agenda, Memos and/or Presentation Materials, workshop summary notes. DocuSign Envelope ID: 13C137BC-9E36-4011-A965-D62E2DB08DF7 Item 9 Attachment A - PA Dwntwn Housing Plan Contract, C24187236        Item 9: Staff Report Pg. 26  Packet Pg. 147 of 318  Professional Services Rev. Dec.15, 2020 Page 20 of 43 • Attendance and facilitation of community workshops. • Coordination with CITY’s project manager on workshop logistics, outreach, and publicity. CITY’s Project Manager will secure a venue for the workshops, lead the outreach and publicity for the events through CITY’s official public communications channels such as newsletter, mailing lists, social media, newspapers, etc., and coordinate logistics for childcare and refreshments. Task 2.6 – Downtown Housing Plan Website or Webpage CITY will host and maintain a website for the Downtown Housing Plan process to inform the public and stakeholders on progress, centralize project records, upcoming activities, and to host online engagement activities. CONSULTANT will coordinate with CITY staff on the maintenance of the website, by providing most up-to-date project materials to be uploaded to the website. The materials will include background information on the project, a schedule with key milestones and a calendar with details about upcoming events; presentation/meeting materials, summaries, and recordings; a description of ways for people to get involved; and contacts for more information. The website or webpage will support Task 2, Task 3, and Task 4. To facilitate information sharing and foster transparency with the entire community, CONSULTANT recommends setting up a project website at the outset of the planning process as it will serve as an easy-to-use information hub. Task 2.6 Deliverables: • Create initial content for project Webpage with Ongoing Updates • Coordinate with CITY staff on uploading project materials to the website. • Provide up-to-date project materials and content to be hosted on the website. Task 2.7 – Best Practices and Case Studies The CONSULTANT team will prepare up to three case studies from comparable cities to summarize lessons learnt on similar issues and how that might be applicable to Palo Alto. Task 2.8 – Pop-up Events (up to 3) The CONSULTANT team will host pop-up engagement booths at farmers market, public library, or other CITY-wide events to provide project information to the broader community. Task 2.9 – Project branding, Outreach and Publicity Materials The CONSULTANT team understands that developing an eye-catching logo and project branding such as colors and typestyles go a long way in generating interest in the planning process and create a visual cue for the community to associate flyers, meeting announcements, yard signs, postcards, social media with the planning process. The CONSULTANT team will create a branding concept for staff and the CITY’s Communications team to review and approve. We will also provide content in the form of text and graphics for outreach and publicity on the CITY’s social media channels, newsletters, and press release as relevant. Task 2.10 – Online Surveys DocuSign Envelope ID: 13C137BC-9E36-4011-A965-D62E2DB08DF7 Item 9 Attachment A - PA Dwntwn Housing Plan Contract, C24187236        Item 9: Staff Report Pg. 27  Packet Pg. 148 of 318  Professional Services Rev. Dec.15, 2020 Page 21 of 43 The CONSULTANT team will prepare and launch a series of online surveys on key topics, to gather input between major engagement events. The surveys will be available through the project website and publicized via the CITY’s media channels to gather broad input. Task 2.11 – Developer Round Table CONSULTANT proposes to conduct a Developer Round Table for the Technical Advisory Group and Community Working Group and invite developers who have experience delivering market-rate and affordable housing in the region for a discussion on topics such as housing production, development economics, and development standards and their impact on financial feasibility of projects. TASK 3 – COMMUNITY ASSESSMENT AND POLICY DEVELOPMENT This task focuses on identifying and analyzing challenges and opportunities to increase housing development downtown. This task includes reports/memos and presentations to the Community Working Group and Technical Advisory Group as deemed necessary, including the CITY Council during study sessions. Reports may be grouped together. Task 3.1 – Key Community Assessment and Policy Development Focus Areas This task outlines the primary analysis and reports necessary for identifying and analyzing the Downtown Housing Plan area central opportunities and challenges, as well as for meeting the MTC’s Priority Development Area Grant analysis requirements. These analyses will inform and become part of the chapters contained within the Downtown Housing Plan. Task 3.1.1 – Equity Analysis, Assessment, and Policy Recommendations This task will identify any existing inequities between people of different racial or ethnic backgrounds, genders, age groups, abilities, or sexual orientation, as well as the historic and recent factors and policies that contribute to these inequities. This task will utilize this information to develop policies to address existing inequities, as well as to inform the meetings and outreach efforts discussed in Task 2 and inform the deliverable for Task 3.2.2. This task integrates and builds upon the findings from the Housing Element update process and informs understanding of community needs around equity in the Downtown Housing Plan area. That information will include area specific information on demographics, economic opportunity and stability, housing stability, health and risk factors of residents and employees of businesses in the Downtown Housing Plan area and surrounding community. Understanding inequities and policy solutions to address those inequities in the Palo Alto Downtown Housing Plan: i. Requires an analytical approach that applies both data and lived experiences, ii. Examines a broader geography that captures those who are not residing in the Downtown area as a result of legacies of displacement and discrimination, and iii. Situates today’s conditions and trends within the historic and current policy context that drove these patterns. DocuSign Envelope ID: 13C137BC-9E36-4011-A965-D62E2DB08DF7 Item 9 Attachment A - PA Dwntwn Housing Plan Contract, C24187236        Item 9: Staff Report Pg. 28  Packet Pg. 149 of 318  Professional Services Rev. Dec.15, 2020 Page 22 of 43 Based on this approach, SUBCONSULTANT Strategic Economics, who will lead this task will analyze and develop equity policy recommendations through the following steps: • Data analysis: The data analysis phase will measure trends in and existing inequities between people of different racial and ethnic backgrounds, genders, age groups, abilities, and sexual orientations. The data analysis task will first establish a set of geographies for which equity indicators data will be collected, including, at minimum, the Downtown Housing Plan area, the CITY, and—since housing discrimination has resulted in segregation at the inter-CITY level—an area encompassing nearby communities. SUBCONSULTANT Strategic Economics will also map selected equity indicators to examine the spatial pattern of inequities and determine the role Downtown Palo Alto can play in addressing specific inequities. Based on these geographies, equity indicators data will be collected and analyzed, including indicators for economic conditions, jobs and workforce, education, health, housing, and public safety. The indicators analysis will incorporate a variety of public data sources such as the U.S. Census, local school districts, Santa Clara County and San Mateo County public health departments, and state and local sources. The analysis will also incorporate recent local CITY analyses—such as the Housing Element update analyses—and outside analyses, such as the UC Berkeley Urban Displacement Project’s displacement risk modeling that measures the involuntary displacement outcomes that result from economic exclusion. • Historical and policy context: In order to connect the findings of the data analysis with their causes, SUBCONSULTANT Strategic Economics will research the historical context and policy context driving patterns of inequity in Palo Alto today. This research will include review of available local historical research that centers marginalized communities, as well as review of historic mechanisms that may have driven local displacement and segregation. Examples include redlining, exclusionary zoning, and use of eminent domain. SUBCONSULTANT Strategic Economics will review recent equity-related analyses and policy efforts such as the CITY’s ongoing Race and Equity efforts through the Policy and Services Committee. SUBCONSULTANT Strategic Economics will also review the CITY’s Housing Element analyses and major policies, regulations, and initiatives especially relevant to the Downtown Housing Plan, such as those related to land use, transportation, housing, health, community services, and economic and workforce development. • Community engagement: Identifying and resolving inequities requires deep engagement with the lived experience of members of impacted communities. SUBCONSULTANT Strategic Economics will work with the CONSULTANT team to ensure that the community outreach and engagement strategy incorporates an approach and tools to gather input from a diverse range of stakeholders. Possible examples include outreach through community organizations, incorporation of an equity-focused community workshop, ensuring diverse representation on the Community Working Group, use of translation services, and stakeholder outreach to community organizations. Per the scope of Task 2, SUBCONSULTANT Strategic Economics will lead outreach and engagement activities related to advancing equity, including presentation of findings and initial policy recommendations in order to refine these recommendations. • Policy recommendations: Based on the data analysis, assessment of the historical and policy context, and input received from community stakeholders, SUBCONSULTANT Strategic DocuSign Envelope ID: 13C137BC-9E36-4011-A965-D62E2DB08DF7 Item 9 Attachment A - PA Dwntwn Housing Plan Contract, C24187236        Item 9: Staff Report Pg. 29  Packet Pg. 150 of 318  Professional Services Rev. Dec.15, 2020 Page 23 of 43 Economics will develop policy and program recommendations for the Downtown Housing Plan that will advance equity by race/ethnicity, gender, age group, ability, and sexual orientation. Strategic Economics will author a report describing findings and conclusions of the analysis, research, and community engagement, and will present policy recommendations for vetting and refinement ahead of potential inclusion in the Downtown Housing Plan itself. Task 3.1.1 Deliverable: • Prepare Equity Analysis, Assessment, and Policy Recommendation Report or Memo (admin and final drafts) • Attend City Council Study Session Task 3.2.1 – Responsiveness to State, Regional, and Local Legal and Regulatory Landscape for Housing Production, Preservation, and Protection Policy Recommendations This task involves investigating and summarizing state, regional, and the local policies used by other jurisdictions that influence the regulatory landscape for housing production, preservation, and protection. The CITY’s existing housing-related policies, regulations, and tools operate within a complex and ever-evolving regulatory landscape that influences local opportunities to produce market rate and affordable housing, preserve existing affordable housing units, and protect residents from displacement from their housing units and communities. Based on a review of existing plans and studies, as well as input from CITY staff and the Technical Advisory Group, SUBCONSULTANT Strategic Economics will summarize existing CITY programs, policies, and funding for housing production, affordable housing preservation, and resident displacement protection. SUBCONSULTANT Strategic Economics will also research state, regional, and local policies in jurisdictions surrounding Palo Alto to identify additional housing policy tools and funding mechanisms. Drawing on its own experience, as well as a review recently completed studies on the topic of affordable housing in the Bay Area, SUBCONSULTANT Strategic Economics will prepare a matrix of “best practices” for the development and preservation of affordable and market rate housing units within the Downtown Housing Plan area. The best practices matrix will be focused on tools and programs that can be implemented to address affordable housing in the area. Task 3.2.1 Deliverable: • Prepare State, Regional, and Local Legal and Regulatory Landscape Analysis, Assessment, and Policy Recommendation Report or Memo • Attend City Council Study Session Task 3.2.2 – Affordable Housing and Jobs Analysis, Assessment and Policy Recommendations This task identifies the composition of jobs in the Downtown Housing Plan area and evaluates the affordability of housing compared to the wages of employees in these jobs. This task quantifies housing need, establishes the housing profile for the area, (deed-restricted affordable housing, unsubsidized affordable housing, market-rate housing, informal housing, and accessibility, etc.), establishes the employment/industry profile for the area, identifies the DocuSign Envelope ID: 13C137BC-9E36-4011-A965-D62E2DB08DF7 Item 9 Attachment A - PA Dwntwn Housing Plan Contract, C24187236        Item 9: Staff Report Pg. 30  Packet Pg. 151 of 318  Professional Services Rev. Dec.15, 2020 Page 24 of 43 development pipeline, assesses real estate conditions and constraints, and assesses local policy conditions and constraints. This task will discuss obstacles to delivery of housing for all income levels and responsive policies. This task will be closely coordinated with the Housing Element update process that is already underway. This task integrates and builds upon the findings from Task 3.2.2 3.2.1, as well as the Housing Element update process. This task informs understanding of community needs regarding housing and employment, including how to affirmatively further fair housing in the Downtown Housing Plan area. This task draws upon the information from Task 3.2.1 and identifies in greater detail the characteristics of the existing and planned housing stock in the Downtown Housing Plan area and surrounding area, as well as projected short- and long-term need. SUBCONSULTANT Strategic Economics will prepare a detailed assessment of housing needs, residential market conditions, a profile of existing and planned housing, and current policies and regulations to identify barriers and opportunities to housing production and preservation in the Downtown Housing Plan area. This work will incorporate research and policy recommendations from the Housing Element and tasks 3.2.1, 3.2.2, and 3.2.3. Specific sub-tasks include the following: • Housing profile: SUBCONSULTANT Strategic Economics will develop a profile describing the existing inventory of housing in the Downtown Plan area, with comparison to the CITY of Palo Alto overall. The inventory will incorporate U.S. Census data describing the composition of the existing housing stock, as well as CITY data tracking deed-restricted affordable housing. The inventory will seek to quantify “naturally occurring affordable housing” (NOAH) based on characteristics typically associated with these units. • Real estate market conditions: SUBCONSULTANT Strategic Economics will analyze housing market conditions/trends and summarize the housing development context within the Palo Alto Downtown Housing Plan area. To supplement real estate market and development data, SUBCONSULTANT Strategic Economics will conduct interviews with for-profit and nonprofit housing developers to gain insights on the key opportunities and constraints for housing production in the area. • Jobs, occupation, and wage analysis: SUBCONSULTANT Strategic Economics will measure the link between existing jobs in the Downtown Housing Plan Area and the CITY as a whole and will measure housing need at different income levels. First, SUBCONSULTANT Strategic Economics will create a profile of jobs by industry sector in the Downtown area and the CITY, based on California EDD data, JobsEQ data provided by the CITY via NOVAworks, or U.S. Census business patterns data. SUBCONSULTANT Strategic Economics will also develop a short- and long-term projections of job growth based on ABAG Plan Bay Area 2050 projections. Second, SUBCONSULTANT Strategic Economics will estimate the occupations and wages associated with these jobs based on the California EDD occupation and wage matrix data for Santa Clara County. Third, SUBCONSULTANT Strategic Economics will calculate the number of new households, by income level, associated with this employment growth. • Housing needs and displacement risks: Housing needs by income level will be compared against the housing profile and market conditions to determine potential existing mismatches, DocuSign Envelope ID: 13C137BC-9E36-4011-A965-D62E2DB08DF7 Item 9 Attachment A - PA Dwntwn Housing Plan Contract, C24187236        Item 9: Staff Report Pg. 31  Packet Pg. 152 of 318  Professional Services Rev. Dec.15, 2020 Page 25 of 43 and to gauge long-term challenges in meeting housing need and addressing displacement impacts. The analysis of displacement risks will incorporate the latest research on gentrification and displacement effects by the Urban Displacement Project at UC Berkeley and literature reviews recently completed by SUBCONSULTANT Strategic Economics to examine the relationship between office employment growth and the potential for gentrification and displacement in surrounding neighborhoods. • Policy reviews and recommendations: SUBCONSULTANT Strategic Economics will incorporate the findings of the policy review in task 3.2.2 to develop policy recommendations for meeting the housing needs, opportunities, and challenges identified in task 3.2.3. Task 3.2.2 Deliverable: • Prepare Affordable Housing and Jobs Analysis, Assessment, and Policy Recommendation Report or Memo (admin and final draft); • Attend City Council Study Session covering the content of Tasks 3.2.2 and 3.2.3. Task 3.2.3 – Housing Development Implementation, Economic Feasibility, and Financing Analysis and Policy Recommendations This task focuses on a housing development feasibility analysis to identify the development standards, incentives, and the associated remaining amount of subsidy necessary to yield more residential and mixed-use developments specifically in the Downtown Housing Plan area. This task integrates and builds upon the findings from Task 3.2.1, Task 3.2.2, and the Housing Element update process. This task will analyze the housing opportunity sites identified in the Housing Element Update to understand what is required for housing to be realized on these sites. The analysis will investigate publicly owned and privately owned parcels at various levels of housing affordability. The analysis will identify funding necessary to rehabilitate existing affordable units in the area, thereby preserving and protecting them. Like efforts undertaken by MTC and ABAG, the analysis will identify the funding shortfall that limits the level of affordable housing production and rehabilitation in the Downtown Housing Plan area. This task will include recommendations for CITY actions to help finance affordable housing, such as consideration of publicly owned parking lots or other publicly owned parcels for housing and mixed-use projects, consideration of different types of partnerships with developers, facilitation of land assembly policies, consideration of establishing a business tax to support the Housing Trust Fund, and consideration of a bond measure. SUBCONSULTANT Strategic Economics will conduct a financial feasibility analysis to assess the potential to incentivize residential development on the opportunity sites identified in the Housing Element Update. The analysis will examine the relative performance of different residential product types and analyze factors influencing the feasibility of residential development in Downtown Palo Alto. SUBCONSULTANT Strategic Economics will build static pro forma models that will test the financial feasibility of up to three residential prototype development projects, each representing different intensities of development on a typical exemplar opportunity site. DocuSign Envelope ID: 13C137BC-9E36-4011-A965-D62E2DB08DF7 Item 9 Attachment A - PA Dwntwn Housing Plan Contract, C24187236        Item 9: Staff Report Pg. 32  Packet Pg. 153 of 318  Professional Services Rev. Dec.15, 2020 Page 26 of 43 SUBCONSULTANT Strategic Economics will coordinate with CONSULTANT and CITY staff to create detailed development project prototypes representing recent and likely residential development projects in Palo Alto. Based on these prototypes, SUBCONSULTANT Strategic Economics will estimate construction costs and attainable revenues. These estimates will incorporate the results of interviews with real estate professionals (developers, contractors, architects, etc.) with recent or current projects in Palo Alto and Santa Clara and San Mateo Counties. Cost estimates of CITY permits, and fees will be reviewed with Planning staff, including assumptions regarding housing impact fees, inclusionary housing in-lieu fees, and verification of specific housing requirements. The static financial models for the three residential prototypes will be used to compare costs and capitalized project revenues to test sensitivity of the prototypes’ financial feasibility to factors influencing construction costs, attainable revenues, and required return—such as reduced parking or fees, differences in housing unit mix, or public land contributions—based on impacts on the prototypes’ supportable residual land values. SUBCONSULTANT Strategic Economics will use the results of the analysis to provide input on potential policy direction around adjustments to requirements for residential development, and to identify the affordability gap that exists for meeting current or enhanced inclusionary housing requirements. SUBCONSULTANT Strategic Economics will then examine the gap between overall affordable housing funding need in the Downtown Housing Plan area versus available funding resources. Based on the policy review in task 3.2.1., SUBCONSULTANT Strategic Economics will develop an inventory of tools to address housing affordability in Palo Alto and quantify funding available from current resources. SUBCONSULTANT Strategic Economics will adapt the financial feasibility analysis to quantify the total affordability gap to deliver required affordable housing units in the Downtown Housing Plan area. The analysis will also quantify a range of need for affordable housing preservation funding based on modeling of the number of units to be preserved and the typical unit acquisition, rehabilitation, and stabilization costs for recently completed preservation projects in and near Palo Alto. Based on the findings of task 3.2.3, SUBCONSULTANT Strategic Economics will identify additional programs and policies to encourage new housing development at Downtown Palo Alto opportunity sites and protect existing NOAH and income-restricted affordable housing. These findings will incorporate feedback and further refinements based on feedback by the Community Working Group and Technical Advisory Group. Task 3.2.3 Deliverable: • Prepare Housing Development Implementation, Economic Feasibility, Financing Analysis, and Policy Recommendation Report or Memo (admin and final drafts) • Attend CITY Council Study Session Task 3.2.4 – Resilience and Climate Adaptation Analysis, Assessment and Policy Recommendations DocuSign Envelope ID: 13C137BC-9E36-4011-A965-D62E2DB08DF7 Item 9 Attachment A - PA Dwntwn Housing Plan Contract, C24187236        Item 9: Staff Report Pg. 33  Packet Pg. 154 of 318  Professional Services Rev. Dec.15, 2020 Page 27 of 43 This task assesses the relative vulnerability of the Downtown Housing Plan area and surrounding communities to natural hazards (examples: sea level rise and flooding, seismic factors) and to environmental quality (examples: air quality, tree canopy/green space, water quality, environmental contamination). This task identifies potential investments, policies, or programs to better adapt the community to these vulnerabilities and poise the community to respond to future conditions and events. This task integrates and builds upon the CITY’s Sustainability and Climate Action Plan and Sea Level Rise Vulnerability Assessment. CONSULTANT and SUBCONSULTANT CSW|ST2 will consider climate vulnerabilities as they pertain to downtown and in light of CITY’s Sustainability and Climate Action Plan and Sea Level Rise Vulnerability Assessment studies. Task 3.2.4 Deliverable: • Prepare Resilience and Climate Adaptation Analysis, Assessment, and Policy Recommendation Report or Memo (admin and final drafts) • Attend City Council Study Session Task 3.2.5 – Community Assets, Services, and Infrastructure Analysis, Assessment, and Policy Recommendations This task identifies the existing availability of essential services and social infrastructure (examples: health care, food and sundries, childcare and education, open space and recreation, community facilities, etc.), existing physical infrastructure (examples: energy, waste, water, electric vehicle charging, broadband, etc.), and existing community assets (examples: formal and informal gathering spaces, cultural institutions, etc.) in the Downtown Housing Plan area. This task will assess the stability of existing and identify currently missing community assets, services, and infrastructure, as well as identify potential investments, policies, or programs to policies to support them in the Downtown Housing Plan area. This analysis will focus on the needed assets to support an increased downtown population. Task 3.2.5 Deliverable: • Prepare Community Assets, Services, and Infrastructure Analysis, Assessment, and Policy Recommendation Report or Memo (admin and final drafts) • Attend City Council Study Session Task 3.2.6 – Mobility and Interconnectivity Analysis, Assessment, and Policy Recommendations This task will assess trip patterns, the quality and relative safety of travel by active modes and for persons with disabilities, access to transit and essential services, and vehicle miles traveled for residents and employees of local businesses within and adjacent to the Downtown Housing Plan area. This task will identify potential investments, policies or programs to improve mobility and interconnectivity, as well as reduce Vehicle Miles Travelled (VMT). This task integrates and builds upon Public Works Department and Office of Transportation efforts, including the University Avenue Corridor Street Design, Citywide Bicycle + Pedestrian Plan update, parking management, and VMT policy making. DocuSign Envelope ID: 13C137BC-9E36-4011-A965-D62E2DB08DF7 Item 9 Attachment A - PA Dwntwn Housing Plan Contract, C24187236        Item 9: Staff Report Pg. 34  Packet Pg. 155 of 318  Professional Services Rev. Dec.15, 2020 Page 28 of 43 SUBCONSULTANT W-Trans will lead this task and conduct a comprehensive assessment of existing and planned transportation facilities and programs that serve all users, focusing on elements such as multi-modal connectivity within the downtown, on- and off-street public and private parking resources including their operations and regulations (e.g. requirements and in- lieu fees) in the CITY Code, and transportation demand management (TDM) measures designed to reduce vehicle miles traveled (VMT). The existing conditions review will rely on existing data such as that collected in the 2017 Downtown Parking Management Study and the Bicycle and Pedestrian Transportation Plan Update and does not assume the collection of new data. A strong emphasis will be placed on analyzing existing and planned parking resources in relation to potential new development and the ability to maximize “shared” parking resources while minimizing parking and traffic impacts to the surrounding neighborhoods. In addition, current TDM programs and the work of the Palo Alto Transportation Management Association (PATMA) will be evaluated, and new opportunities will be identified with particular focus on resident and employee measures that can reduce VMT that do not inadvertently create new impacts (e.g. unbundled parking pricing without proper on-street management). A cost assessment will be conducted on all measures for consideration to determine the cost-effective approach. The resulting mobility plan will include recommended policies and programs that accomplish a range of goals including increasing the share of non-motorized travel to the downtown, effectively utilizing available parking resources, and reducing the need for costly parking infrastructure and incentivizing the implementation of TDM measures to provide both economical and sustainable mobility options to all downtown users. Task 3.2.6 Deliverable: • Prepare Mobility and Interconnectivity Analysis, Assessment, and Policy Recommendation Report or Memo (admin and final drafts) • Attend City Council Study Session Task 3.2.7 – Downtown Private Realm and Public Realm Design Guidelines, Architectural Review Findings, and Objective Standards for Housing Development Policy Recommendations This task evaluates the CITY’s current Downtown Design Guidelines, Architectural Review Findings, and Objective Standards for Housing Development to assess which aspects could be updated to facilitate housing development in the Downtown Housing Plan area. Private realm considerations include design gestures that contribute to a strong sense of place, such as building massing, lighting, landscaping, and building interfaces with public realm such as streets, alleys, and open space. Considerations include building on previous efforts that maintained view corridors, activity focal points, and a human scale orientation throughout downtown. Considerations also include urban design that addresses the anticipated greater diversity of building forms, densities, height, and mixed-use development for the Downtown Housing Plan area. This effort will draw on CITY-wide Objective Design Standards as well as Housing Element discussions regarding form. DocuSign Envelope ID: 13C137BC-9E36-4011-A965-D62E2DB08DF7 Item 9 Attachment A - PA Dwntwn Housing Plan Contract, C24187236        Item 9: Staff Report Pg. 35  Packet Pg. 156 of 318  Professional Services Rev. Dec.15, 2020 Page 29 of 43 The alternatives exploration will be guided by an understanding of market demand and development feasibility of housing types and other uses. CONSULTANT will develop 2D diagrams and 3D illustrations to test site feasibility, program options and scale of development. These materials will also serve as effective communication tools during stakeholder and community engagement events. Based on the feasibility testing and concept explorations, CONSULTANT will prepare recommendations for updates to existing standards and introduction of new standards and guidelines to achieve the desired outcomes. Public realm considerations include a Sustainable Streets focus that identifies the key remaining steps necessary to implement vision zero policies, complete street designs, versatile use of the public right of way, and green streets infrastructure designs within the Downtown Housing Plan area. Public realm considerations also reference innovations in parking management and curb management. CONSULTANT will prepare open space and landscape design standards and guidelines for public and private realm, addressing open space requirements for private development, planting guidelines, stormwater and wastewater management guidelines, parking, and curb management, etc. CONSULTANT will include cross-sections and precedent images to communicate best practices and guidance on open space and landscape treatment. Task 3.2.7 Deliverable: • Prepare Downtown Private Realm and Public Realm Design Guidelines, Architectural Review Findings, and Objective Standards for Housing Development Policy Recommendations Report or Memo • Attend City Council Study Session Task 3.2.8 – Downtown Visioning, Opportunities/Constraints, Identification of Community Best Practices, and Downtown Housing Plan Approach Recommendations This task integrates all other subtasks and discusses the options for meeting the Downtown Housing Plan area central challenges based upon the information surfaced during this Community Assessment and Policy Development effort. Task 3.2.8 Deliverable: • Prepare Downtown Visioning, Opportunities/Constraints, Identification of Community Best Practices and Downtown Housing Plan Approach Recommendations Report or Memo • Attend City Council Study Session Task 3.2.9 Fiscal Impact Analysis Based on a buildout program provided by CONSULTANT, Strategic Economics will estimate the fiscal impact of development in the Downtown Housing Plan area. The analysis will estimate the fiscal impact of a potential future development scenario on the CITY’s General Fund. The fiscal study will estimate the operating revenues and expenditures associated with projected net new growth in commercial and residential land uses. SUBCONSULTANT Strategic Economics will analyze the property tax, sales tax, and other major sources of General Fund revenues associated with net new growth in land uses. Based on interviews with key CITY departments, DocuSign Envelope ID: 13C137BC-9E36-4011-A965-D62E2DB08DF7 Item 9 Attachment A - PA Dwntwn Housing Plan Contract, C24187236        Item 9: Staff Report Pg. 36  Packet Pg. 157 of 318  Professional Services Rev. Dec.15, 2020 Page 30 of 43 SUBCONSULTANT Strategic Economics will calculate the increase in General Fund expenditures for providing services to new residents and employees. Based on the results of the fiscal assessment, SUBCONSULTANT Strategic Economics will determine whether the estimated public revenues would offset increases in the cost of public services to serve new development. Task 3.2.9 Deliverable: • Fiscal Impact Analysis Memo (two drafts: administrative and final) TASK 4 –DOWNTOWN HOUSING PLAN DOCUMENTS This overall task outlines the primary documents necessary for adoption of the Downtown Housing Plan, as well as the documents necessary to meet the MTC’s Priority Development Area Grant requirements. Task 4.1 – Downtown Housing Plan Preparation This task outlines the steps necessary to prepare the Downtown Housing Plan. This task may include meetings with the Community Working Group. CONSULTANT will lead this task and coordinate contributions from other team members. We will set up a project branded document template for the final Downtown Housing Plan. Task 4.1.1 – Downtown Housing Plan Sections and Topic Outline This task results in the outline of the Downtown Housing Plan sections and topics. As required by the MTC’s Priority Development Area Grant, the outline can be organized differently, but will include at least the following topics: introduction, vision, development standards, open space, mobility, community assets and infrastructure, and implementation and financing. This report will integrate the content and deliverables from the prior tasks. CONSULTANT will prepare an outline of the Downtown Housing Plan document for staff review and finalize it based on feedback received. Task 4.1.1 Deliverable: • Prepare Downtown Housing Plan Sections and Topic Outline Task 4.1.2 - Downtown Housing Plan Administrative Draft 1 CONSULTANT will prepare a digital copy of the Administrative Draft of the Downtown Housing Plan. Draft 1 will be submitted in a Word file format for Staff comments, with accompanying graphics and images in a separate PDF format. Task 4.1.2 Deliverable: • Prepare Downtown Housing Plan Administrative Draft 1 (Word and Portable Document Format (PDF) versions) Task 4.1.3 - Downtown Housing Plan Community Working Group and Technical Advisory Group Draft 1 DocuSign Envelope ID: 13C137BC-9E36-4011-A965-D62E2DB08DF7 Item 9 Attachment A - PA Dwntwn Housing Plan Contract, C24187236        Item 9: Staff Report Pg. 37  Packet Pg. 158 of 318  Professional Services Rev. Dec.15, 2020 Page 31 of 43 CONSULTANT will provide a digital copy of the Administrative Draft 1 of the Downtown Housing Plan for review by the Community Working Group and the Technical Advisory Group. Task 4.1.3 Deliverable: • Prepare Downtown Housing Plan Community Working Group and Technical Advisory Group Draft 1 (Word and PDF versions) Task 4.1.4 - Downtown Housing Plan Administrative Draft 2 Downtown Housing Plan Administrative Draft 2 will address comments received on Draft 1, from Staff, Technical Advisory Group and Community Working Group. CONSULTANT will format Draft 2 in the project branded graphic template and will submit it for a second round of Staff review in a PDF format. Task 4.1.4 Deliverable: • Prepare Downtown Housing Plan Administrative Draft 2 (Word and PDF versions) Task 4.1.5 - Downtown Housing Plan Public Hearing Draft 1 CONSULTANT will address comments received on Administrative Draft 2 and prepare a PDF of Downtown Housing Plan Public Hearing Draft 1, formatted in the project branded graphic template. Task 4.1.5 Deliverable: • Prepare Downtown Housing Plan Public Hearing Draft 1 (Word and PDF versions) Task 4.1.6 – Downtown Housing Plan Final CONSULTANT will incorporate comments received on the Public Hearing Draft of the Downtown Housing Plan and prepare a PDF of the final Downtown Housing Plan document. Task 4.1.6 Deliverable: • Prepare Downtown Housing Plan Public Final Task 4.2 – Downtown Housing Plan California Environmental Quality Act (CEQA) Environmental Document This task outlines the steps necessary to prepare the CEQA Environmental Document necessary for the Downtown Housing Plan. The goal of this task is to prepare the correct CEQA document that will clear projects that are consistent with the Downtown Housing Plan, avoiding the need for project-level analyses. Task 4.2.1 – Notice of Preparation (NOP)/Initial Study Task SUBCONSULTANT David J Powers & Associates will prepare an Initial Study which will tier from the Comprehensive Plan Update Final EIR. The Initial Study, which will utilize the CEQA DocuSign Envelope ID: 13C137BC-9E36-4011-A965-D62E2DB08DF7 Item 9 Attachment A - PA Dwntwn Housing Plan Contract, C24187236        Item 9: Staff Report Pg. 38  Packet Pg. 159 of 318  Professional Services Rev. Dec.15, 2020 Page 32 of 43 Guidelines Appendix G Checklist, will analyze the proposed housing Downtown Housing Plan assuming the policies and mitigation measures identified in the Comprehensive Plan Update Final EIR as part of the project. All development standards identified in the Downtown Housing Plan will also be assumed in the analysis. The intent is to provide a sufficient level of analysis to allow future projects/discretionary actions to proceed without supplemental environmental review. Prior to the start of the Initial Study, SUBCONSULTANT David J Powers & Associates will participate in a kick-off meeting with CITY staff to confirm the assumptions of the analysis, the scope of work, and schedule. After the kick-off meeting, SUBCONSULTANT David J Powers & Associates will prepare the project description to be included in the environmental analysis and submit to CITY staff for review. The kick-off meeting and preparation of the project description would take one week to complete. Based on a review of the Comprehensive Plan Update Final EIR, this scope assumes that the analysis will not quantify operational or construction Air Quality, Greenhouse Gas Emissions, Noise, or Vibration. A Phase I Environmental Site Assessment of the Downtown Housing Plan Area will be required to identify the appropriate mitigation for future projects. A transportation analysis, which quantifies vehicle miles traveled (VMT), will also be required. While VMT was addressed in the Comprehensive Plan Update Final EIR, the EIR was completed and certified prior to the adoption of a quantifiable VMT threshold and the Santa Clara Valley Transportation Authority’s VMT Evaluation Tool. As such, an updated VMT analysis will be required. Based on the findings of the Comprehensive Plan Update Final EIR, an EIR would be required if the Initial Study analysis finds a significant unavoidable impact to historic structures and/or VMT. It is unlikely that the proposed Downtown Housing Plan would result in any other resource area having a new significant impact or a greater level of impact than what was identified in the Comprehensive Plan Update Final EIR. Assuming the VMT analysis would take 10 weeks to complete, including two weeks for a detailed scope review and approval by CITY staff, the Initial Study would be completed 13 weeks after approval of the project description. If the analysis determines that an EIR is required (see Task 4.2.2), DJP&A will prepare a Notice of Preparation (NOP) and submit the NOP to the CITY along with the Initial Study for review. If an EIR is not required, DJP&A will submit just the Initial Study for review. Preparation of the NOP will not add time to the 13-week Initial Study schedule. 4.2.1 Deliverable: • Prepare Notice of Preparation (NOP)/Initial Study Task 4.2.2 - Identification of Appropriate CEQA Environmental Document This task identifies the appropriate CEQA Environmental Document, likely an Initial Study/Negative Declaration, Initial Study/Mitigated Negative Declaration, Supplemental Environmental Impact Report, or a Programmatic Environmental Impact Report. DocuSign Envelope ID: 13C137BC-9E36-4011-A965-D62E2DB08DF7 Item 9 Attachment A - PA Dwntwn Housing Plan Contract, C24187236        Item 9: Staff Report Pg. 39  Packet Pg. 160 of 318  Professional Services Rev. Dec.15, 2020 Page 33 of 43 Based on the findings of the Initial Study, SUBCONSULTANT David J Powers & Associates will prepare a memo for CITY staff outlining the level of environmental review required pursuant to CEQA. The memo will be completed and submitted to the CITY within three business days of completing the Initial Study. Task 4.2.2 Deliverable: • Prepare CITY Internal Memo Task 4.2.3 – Environmental Document Notices and Preparation This task outlines the steps for completing CEQA documentation for the Downtown Housing Plan. Task 4.2.3A – Scoping Meeting If an EIR is required, SUBCONSULTANT David J Powers & Associates will assist CITY staff as needed in completing a scoping meeting for the EIR. SUBCONSULTANT David J Powers & Associates will prepare the public notices and any necessary reports, prepare a presentation describing the public participation process, and respond to questions as needed during the meeting. Task 4.2.3A Deliverable: • Prepare noticing materials; • Facilitation of Scoping Meeting Task 4.2.3B – Administrative Draft CEQA Environmental Document Task If it is determined that an Initial Study is the appropriate level of environmental review, submittal of the Initial Study (as outlined in Task 4.2.1) will constitute the administrative draft CEQA document. If an EIR is required, the Initial Study will be used to focus the EIR on the new/greater resource impacts. The EIR will be prepared and submitted within three weeks of submittal of the Initial Study. If an EIR is required, the Initial Study will be included in the EIR as Appendix A for public circulation. If an EIR is recommended, SUBCONSULTANT David J Powers & Associates recommends a meeting with CITY Staff to discuss and outline alternatives to be assessed in the EIR. 4.2.3B Deliverable: • Prepare Administrative Draft CEQA Environmental Document Task 4.2.3C –Draft CEQA Environmental Document Task Based on CITY Staff comments on the EIR and/or Initial Study, SUBCONSULTANT David J Powers & Associates will revise the document as needed and submit a Screencheck EIR and/or Initial Study for final review and approval. Once final approval is provided by CITY Staff, DJP&A will prepare the Draft EIR and/or Initial Study for public circulation. Deliverables will include a PDF of the environmental document and appendices for posting on the CITY’s website, uploading of all documents to the State Clearinghouse, and delivery of up to 35 hard copies of the document to the CITY for distribution. DocuSign Envelope ID: 13C137BC-9E36-4011-A965-D62E2DB08DF7 Item 9 Attachment A - PA Dwntwn Housing Plan Contract, C24187236        Item 9: Staff Report Pg. 40  Packet Pg. 161 of 318  Professional Services Rev. Dec.15, 2020 Page 34 of 43 4.2.3C Deliverable: • Prepare Draft CEQA Environmental Document Task 4.2.3D – Notice of Completion (NOC) SUBCONSULTANT David J Powers & Associates will prepare the Notice Completion for circulation of the environmental document. Task 4.2.3D Deliverable: Prepare and file Notice of Completion (NOC) with State Clearinghouse Task 4.2.3E – Final Environmental Impact Report (FEIR) (If Applicable)Task If an EIR is required, SUBCONSULTANT David J Powers & Associates will prepare a Final EIR which responds to all comments received during the public circulation period and includes any necessary text edits. The Administrative Draft Final EIR will be submitted to the CITY within three weeks of the end of the circulation period for review, dependent on the number and substance of comment letters received. The schedule for completion of the Final EIR will be coordinated with CITY staff once all comments are received and the level of work required to prepare the Final EIR is understood. This scope assumes one administrative draft review and one Screencheck review. Upon approval of the Screencheck, DJP&A will finalize the Final EIR and submit a PDF of the environmental document for posting on the CITY’s website, upload the document to the State Clearinghouse, and deliver of up to 25 hard copies of the document to the CITY for distribution. If an Initial Study is prepared, DJP&A will prepare a response to comments memo to be included in the staff report if necessary. The response to comments memo would follow the same process as the Final EIR but would not be required to be uploaded to the State Clearinghouse and no hard copies would be provided. 4.2.3E Deliverable: Prepare Final Environmental Impact Report (FEIR) Task 4.2.3F – Notice of Determination (NOD) Upon approval/certification of the environmental document, DJP&A will prepare a Notice of Determination and file it at the County within five business days of the final public hearing. Task 4.2.3F Deliverable: Prepare and file Notice of Determination (NOD) with State Clearinghouse Task 4.2.3G – Technical SUBCONSULTANTS for EIR Noting this tasks identifies that resources will be need for technical consults and ensures that Exhibit A matches Exhibit C back up material in terms of budgeted amount. A breakdown of scope of work and labor costs will be approved by CITY staff prior to use of these budgeted funds. Task 4.3 – Downtown Housing Plan Adoption, CEQA Environmental Document DocuSign Envelope ID: 13C137BC-9E36-4011-A965-D62E2DB08DF7 Item 9 Attachment A - PA Dwntwn Housing Plan Contract, C24187236        Item 9: Staff Report Pg. 41  Packet Pg. 162 of 318  Professional Services Rev. Dec.15, 2020 Page 35 of 43 Certification, Comprehensive Plan Amendment, and Municipal Code Update This task outlines the steps necessary to adopt the Downtown Housing Plan. Task 4.3.1 – Public Hearings (Updates and Coordination) This task pertains to public hearings with City Council and other boards and commissions to provide updates and coordination on the Downtown Housing Plan process. Three to five public hearings are anticipated with each body (i.e. City Council, Planning and Transportation Commission, Architectural Review Board). CONSULTANT will coordinate with the CITY’s Project Manager on preparing updates on the Downtown Housing Plan Preparation Process to present at public hearings with the City Council, Planning and Transportation Commission, and Architectural Review Board. CONSULTANT will prepare presentation materials as needed, for the public hearings. SUBCONSULTANT David J Powers & Associates will provide staff support as necessary at up to 15 total public hearings during preparation of the environmental analysis, including giving presentations to each body on the status of the environmental analysis and responding to questions. Task 4.3.1 Deliverables: • Prepare reports and presentation materials, meeting summary notes, • Attendance at public hearings. Task 4.3.2 – Public Hearings (Adoption) This task pertains to public hearings with CITY Council and other boards and commissions necessary to certify the CEQA Environmental Document and adopt the Downtown Housing Plan. At least four public hearings are anticipated. CONSULTANT will provide staff support as necessary, by providing presentation materials and other relevant content, at up to four public hearings for adoption of the Downtown Housing Plan and CEQA Environmental Document. SUBCONSULTANT David J Powers & Associates will provide staff support as necessary at up to four total public hearings for adoption of the Downtown Housing Plan and environmental analysis, including giving presentations to each body on the findings of the environmental analysis and responding to questions. Task 4.3.2 Deliverables: • Prepare reports and presentation materials, meeting summary notes. • Attendance at public hearings. Task 4.3.3 – CEQA Environmental Document Certification or Adoption SUBCONSULTANT David J Powers & Associates will assist CITY staff with preparation of the findings/resolution as needed for certification of the EIR or adoption of the Initial Study. DocuSign Envelope ID: 13C137BC-9E36-4011-A965-D62E2DB08DF7 Item 9 Attachment A - PA Dwntwn Housing Plan Contract, C24187236        Item 9: Staff Report Pg. 42  Packet Pg. 163 of 318  Professional Services Rev. Dec.15, 2020 Page 36 of 43 Task 4.3. 3 Deliverable: • Document Certification/Adoption Resolution Task 4.3.4 - Downtown Housing Plan Adoption CONSULTANT will provide staff support as necessary for Downtown Housing Plan Adoption. Task 4.3.4 Deliverable: • Assist with Downtown Housing Plan Adoption Resolution Task 4.3.5 – Land Use Map Update and Comprehensive Downtown Housing Plan Amendment CONSULTANT will assist staff in updating the Land Use Plan and other relevant sections of the CITY-wide Comprehensive Plan. Task 4.3.5 Deliverable: • Assist with Map Update and Amendment Resolution Task 4.3.6 – Zoning Map Update and Municipal Code Update CONSULTANT will assist staff in updating the Zoning Map and relevant sections of the CITY Municipal Code. Task 4.3.6 Deliverable: • Assist with Map and Code Update Ordinance DocuSign Envelope ID: 13C137BC-9E36-4011-A965-D62E2DB08DF7 Item 9 Attachment A - PA Dwntwn Housing Plan Contract, C24187236        Item 9: Staff Report Pg. 43  Packet Pg. 164 of 318  Professional Services Rev. Dec.15, 2020 Page 37 of 43 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. CONTRACT NO. C24187236 1A. TASK ORDER NO.: 2. CONSULTANT OR SUBCONSULTANT NAME: 3. PERIOD OF PERFORMANCE: START: 4 TOTAL TASK ORDER PRICE: $__________________ 7. SCOPE OF SERVICES – MUST REFERENCE TASK(S) IN EXHIBIT A 8. ATTACHMENTS: I hereby authorize the performance of the work described in this Task Order. APPROVED: CITY OF PALO ALTO Name __________________________________ Title______________________________ Date __________________________________ I hereby acknowledge receipt and acceptance of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: WALLACE ROBERTS & TODD, LLC Name __________________________________ Title______________________________ Date __________________________________ DocuSign Envelope ID: 13C137BC-9E36-4011-A965-D62E2DB08DF7 Item 9 Attachment A - PA Dwntwn Housing Plan Contract, C24187236        Item 9: Staff Report Pg. 44  Packet Pg. 165 of 318  Professional Services Rev. Dec.15, 2020 Page 38 of 43 EXHIBIT B SCHEDULE OF PERFORMANCE CONSULTANT shall perform the Services so as to complete each task either on daily basis or as directed by CITY staff. 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. TASKS SCHEDULE 1. PROJECT MANAGEMENT AND COORDINATION ONGOING/DAILY 2. COMMUNITY OUTREACH AND ENGAGEMENT AS DIRECT BY CITY STAFF 3. COMMUNITY ASSESSMENT AND POLICY DEVELOPMENT AS DIRECT BY CITY STAFF 4. DOWNTOWN HOUSING PLAN DOCUMENTS AS DIRECT BY CITY STAFF DocuSign Envelope ID: 13C137BC-9E36-4011-A965-D62E2DB08DF7 Item 9 Attachment A - PA Dwntwn Housing Plan Contract, C24187236        Item 9: Staff Report Pg. 45  Packet Pg. 166 of 318  Professional Services Rev. Dec.15, 2020 Page 39 of 43 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 Task 1 (PROJECT MANAGEMENT AND COORDINATION) $121,265 Task 2 (COMMUNITY OUTREACH AND ENGAGEMENT) $338,170 Task 3 (COMMUNITY ASSESSMENT AND POLICY DEVELOPMENT) $385,310 Task 4 (DOWNTOWN HOUSING PLAN DOCUMENTS) $490,895 Sub-total for Services $1,335,640 Reimbursable Expenses (if any) $35,500 Total for Services and Reimbursable Expenses $1,371,140 Additional Services (if any, per Section 4) $137,114 Maximum Total Compensation $1,508,254 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 DocuSign Envelope ID: 13C137BC-9E36-4011-A965-D62E2DB08DF7 Item 9 Attachment A - PA Dwntwn Housing Plan Contract, C24187236        Item 9: Staff Report Pg. 46  Packet Pg. 167 of 318  Professional Services Rev. Dec.15, 2020 Page 40 of 43 be reimbursed are: travel, meals, printing, translation services, renderings, visualizations, and stipends for nonprofit/community members/round table panelists up to the not-to-exceed amount of: $35,500. 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. DocuSign Envelope ID: 13C137BC-9E36-4011-A965-D62E2DB08DF7 Item 9 Attachment A - PA Dwntwn Housing Plan Contract, C24187236        Item 9: Staff Report Pg. 47  Packet Pg. 168 of 318  Professional Services Rev. Dec.15, 2020 Page 41 of 43 EXHIBIT C-1 SCHEDULE OF RATES CITY, CONSULTANT and SUBCONSULTANTS may at any time mutually agree to add new position titles, rates, and adjust listed rates so long as the changes do not increase the not to exceed amount as noted in Section 4. CONSULTANT’s schedule of rates is as follows: Wallace Roberts & Todd, LLC Principal $265 Principal Advisors $265 Project Manager $205 Sr. Urban Designer/Architect $205 PUD Level III $160 UD Level 1 $115 Administrative Support $110 SUBCONSULTANTS schedule of rates is as follows: CBI Principal $255 Staff $205 Strategic Economics Principal $235 Associates $140 Research Analyst $115 W-Trans Principal $300 Project Manager $270 Project Planner $135 Administrative Support $130 CSW | ST2 Principal $300 Project Manager $270 Engineer $175 David J Powers & Associates Principal $295 Project Manager $230 Staff $120- $180 DocuSign Envelope ID: 13C137BC-9E36-4011-A965-D62E2DB08DF7 Item 9 Attachment A - PA Dwntwn Housing Plan Contract, C24187236        Item 9: Staff Report Pg. 48  Packet Pg. 169 of 318  Professional Services Rev. Dec.15, 2020 Page 42 of 43 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 THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A 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 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. DocuSign Envelope ID: 13C137BC-9E36-4011-A965-D62E2DB08DF7 Item 9 Attachment A - PA Dwntwn Housing Plan Contract, C24187236        Item 9: Staff Report Pg. 49  Packet Pg. 170 of 318  Professional Services Rev. Dec.15, 2020 Page 43 of 43 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 TO THE FOLLOWING EMAIL: PURCHASINGSUPPORT@CITYOFPALOALTO.ORG DocuSign Envelope ID: 13C137BC-9E36-4011-A965-D62E2DB08DF7 Item 9 Attachment A - PA Dwntwn Housing Plan Contract, C24187236        Item 9: Staff Report Pg. 50  Packet Pg. 171 of 318  Professional Services Rev. Dec.15, 2020 Page 1 of 20 CITY OF PALO ALTO CONTRACT NO. C24187237 AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF PALO ALTO AND GOOD CITY COMPANY This Agreement for Professional Services (this “Agreement”) is entered into as of the 26th day of January 2024 (the “Effective Date”), by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and GOOD CITY COMPANY, a California Corporation, located at 601 Allerton Street, Suite 110, Redwood City, CA 94063 (“CONSULTANT”). The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this reference: RECITALS A. CITY intends to utilize Project Management services for the Downtown Housing Plan (the “Project”) and desires to engage a consultant to provide community engagement, public meeting, document review, and other general project management 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 December 31, 2026, 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. DocuSign Envelope ID: C8341EF0-AE55-43D1-9519-F86553196D6C Item 9 Attachment B - PA Dwntwn Housing Plan Project Manager Contract, C24187237        Item 9: Staff Report Pg. 51  Packet Pg. 172 of 318  Professional Services Rev. Dec.15, 2020 Page 2 of 20 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 shall not exceed Three Hundred Fifty Seven Thousand Six Hundred Forty Dollars ($357,640). 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 Seventeen Thousand Eight Hundred Eighty-Two Dollars ($17,882) 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 Three Hundred Seventy- Five Thousand Five Twenty-Two Dollars ($375,522), 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. 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. All invoices shall be DocuSign Envelope ID: C8341EF0-AE55-43D1-9519-F86553196D6C Item 9 Attachment B - PA Dwntwn Housing Plan Project Manager Contract, C24187237        Item 9: Staff Report Pg. 52  Packet Pg. 173 of 318  Professional Services Rev. Dec.15, 2020 Page 3 of 20 submitted to the Planning Department’s contract email account at PCEContracts@cityofpaloalto.org to ensure timely payment. 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, 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 DocuSign Envelope ID: C8341EF0-AE55-43D1-9519-F86553196D6C Item 9 Attachment B - PA Dwntwn Housing Plan Project Manager Contract, C24187237        Item 9: Staff Report Pg. 53  Packet Pg. 174 of 318  Professional Services Rev. Dec.15, 2020 Page 4 of 20 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 will apply to, and will bind, the heirs, successors, executors, administrators and assignees of the parties. SECTION 12. SUBCONTRACTING. Subcontracts Authorized: Notwithstanding Section 11 (Assignment) above, CITY agrees that subcontractors may be used to complete the Services only with prior approval, in writing, including scope of services, cost and duration. 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 Kelly Beggs Telephone: 628-222-5985, Email: kbeggs@goodcityco.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. 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 Coleman Frick, Planning and Development Services Department, , 250 Hamilton Ave. Palo Alto, CA, 94301 Telephone: 650-838-2821, Email: coleman.frick@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 DocuSign Envelope ID: C8341EF0-AE55-43D1-9519-F86553196D6C Item 9 Attachment B - PA Dwntwn Housing Plan Project Manager Contract, C24187237        Item 9: Staff Report Pg. 54  Packet Pg. 175 of 318  Professional Services Rev. Dec.15, 2020 Page 5 of 20 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. 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. DocuSign Envelope ID: C8341EF0-AE55-43D1-9519-F86553196D6C Item 9 Attachment B - PA Dwntwn Housing Plan Project Manager Contract, C24187237        Item 9: Staff Report Pg. 55  Packet Pg. 176 of 318  Professional Services Rev. Dec.15, 2020 Page 6 of 20 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 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, DocuSign Envelope ID: C8341EF0-AE55-43D1-9519-F86553196D6C Item 9 Attachment B - PA Dwntwn Housing Plan Project Manager Contract, C24187237        Item 9: Staff Report Pg. 56  Packet Pg. 177 of 318  Professional Services Rev. Dec.15, 2020 Page 7 of 20 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 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. DocuSign Envelope ID: C8341EF0-AE55-43D1-9519-F86553196D6C Item 9 Attachment B - PA Dwntwn Housing Plan Project Manager Contract, C24187237        Item 9: Staff Report Pg. 57  Packet Pg. 178 of 318  Professional Services Rev. Dec.15, 2020 Page 8 of 20 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, 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. DocuSign Envelope ID: C8341EF0-AE55-43D1-9519-F86553196D6C Item 9 Attachment B - PA Dwntwn Housing Plan Project Manager Contract, C24187237        Item 9: Staff Report Pg. 58  Packet Pg. 179 of 318  Professional Services Rev. Dec.15, 2020 Page 9 of 20 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 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. DocuSign Envelope ID: C8341EF0-AE55-43D1-9519-F86553196D6C Item 9 Attachment B - PA Dwntwn Housing Plan Project Manager Contract, C24187237        Item 9: Staff Report Pg. 59  Packet Pg. 180 of 318  Professional Services Rev. Dec.15, 2020 Page 10 of 20 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, 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, DocuSign Envelope ID: C8341EF0-AE55-43D1-9519-F86553196D6C Item 9 Attachment B - PA Dwntwn Housing Plan Project Manager Contract, C24187237        Item 9: Staff Report Pg. 60  Packet Pg. 181 of 318  Professional Services Rev. Dec.15, 2020 Page 11 of 20 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. 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. 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 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. DocuSign Envelope ID: C8341EF0-AE55-43D1-9519-F86553196D6C Item 9 Attachment B - PA Dwntwn Housing Plan Project Manager Contract, C24187237        Item 9: Staff Report Pg. 61  Packet Pg. 182 of 318  Professional Services Rev. Dec.15, 2020 Page 12 of 20 CONTRACT No. C24187237 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 GOOD CITY COMPANY Officer 1 By: Name: Aaron Aknin Title: Secretary aaknin@goodcityco.com Officer 2 By: Name: Lisa Costa-Sanders Title: President lcostasanders@goodcityco.com DocuSign Envelope ID: C8341EF0-AE55-43D1-9519-F86553196D6C Item 9 Attachment B - PA Dwntwn Housing Plan Project Manager Contract, C24187237        Item 9: Staff Report Pg. 62  Packet Pg. 183 of 318  Professional Services Rev. Dec.15, 2020 Page 13 of 20 EXHIBIT A SCOPE OF SERVICES CONSULTANT will provide the Services detailed in this Exhibit A, entitled “SCOPE OF SERVICES”. CONSULTANT will complete project management services through community engagement, public meeting, document review and other mutually agreed upon tasks. Task 1: Project Commencement and Community Engagement Strategy A. Weekly Check-in Meeting. CONSULTANT will participate in a weekly 1-hour check in meeting with staff and consultants to provide progress updates, review open action items, review upcoming schedule milestones, and solicit feedback and discuss issues as needed. CONSULTANT will solicit staff and consultants for agenda items and distribute agendas a day ahead of meetings. B. Task-tracking Document. CONSULTANT will create and maintain a task-tracking document using either OneDrive or GoogleDocs to allow collaboration with CITY and consultant staff. The document will specify action items, responsible parties, status, and due dates and will be updated on a daily basis. CONSULTANT will also review action items during weekly meetings to ensure that the CITY and consultant teams are aligned on project status and issue resolution. C. Invoice Tracking and Approval. CONSULTANT will create an invoice tracking spreadsheet to track budget and assess billings as they relate to task completion. CONSULTANT will work with CITY staff to process and pay invoices in a timely manner. D. Schedule Tracking. CONSULTANT will proactively track consultants’ progress on deliverables to ensure that the project stays on schedule. CONSULTANT will ask that schedule is on the agenda for every check-in meeting to confirm deliverable timelines and avoid slowdowns. E. Weekly Email and Updates. CONSULTANT will send a weekly project status email to the Planning Manager of Long- Range Planning or designee to keep CITY staff aware of project status and will provide updates on major issues as they arise. F. Meeting Coordination. CONSULTANT will work with staff and consultants to coordinate schedules, send meeting invitations, prepare agendas, and facilitate meetings when necessary. G. General Communications. CONSULTANT will act as a main point of contact for internal and external inquiries and communications regarding the Housing Plan. H. Notices. CONSULTANT will assist staff with preparing, posting, and mailing notices required for public meetings and for CEQA milestones. DocuSign Envelope ID: C8341EF0-AE55-43D1-9519-F86553196D6C Item 9 Attachment B - PA Dwntwn Housing Plan Project Manager Contract, C24187237        Item 9: Staff Report Pg. 63  Packet Pg. 184 of 318  Professional Services Rev. Dec.15, 2020 Page 14 of 20 Task 2: Document Review Coordination A. Setting Document Review Policy. CONSULTANT will establish a global review policy at the kickoff of the project to assess the preferences of key CITY reviewers. CONSULTANT recommends consolidating comments and streamlining review by saving documents in OneDrive or within CITY SharePoint files so that reviewers can concurrently comment. CONSULTANT can also assist with consolidating comments and tracked changes from multiple versions, should a versioning issue arise. B. Review Timelines. CONSULTANT will clearly communicate review deadlines to CITY reviewers and will provide follow-up reminders of deadlines. C. Comment Review and Integration. CONSULTANT will provide an extra layer of review of documents after CITY reviewers provide comments to flag major issues that require attention and discussion during weekly check-in meetings. D. Comment Matrices. CONSULTANT will create shared comment matrices and assign responsible parties for issue resolution. Task 3: Public and Community Meetings, Community Working Group Meetings, and Technical Advisory Meetings A. Maintain Up-to-Date Public Information. In collaboration with the Housing Plan consultant, CONSULTANT will draft website content and updates, as well as social media and newsletter posts. B. Public Meetings. In collaboration with the Housing Plan consultant, CONSULTANT will draft staff reports, memos, and presentations using CITY templates and agenda management software. CONSULTANT will also attend and present (as needed) at public meetings and to Boards, Commissions and Council as necessary. CONSULTANT will also prepare notes summarizing each public meeting. C. Community Working Group and Technical Advisory Group Meetings. CONSULTANT will serve as a liaison between staff, consultants and the Community Working Group and Technical Advisory Group. CONSULTANT will coordinate meeting times and logistics and assist staff and the Housing Plan consultant with meeting agendas and materials. CONSULTANT will also prepare notes summarizing each Working Group and Advisory Group meeting. D. Community Workshops. CONSULTANT will attend and assist the Housing Plan consultant in planning, setting up, and staffing community workshops DocuSign Envelope ID: C8341EF0-AE55-43D1-9519-F86553196D6C Item 9 Attachment B - PA Dwntwn Housing Plan Project Manager Contract, C24187237        Item 9: Staff Report Pg. 64  Packet Pg. 185 of 318  Professional Services Rev. Dec.15, 2020 Page 15 of 20 EXHIBIT B SCHEDULE OF PERFORMANCE CONSULTANT shall perform the Services so as to complete each milestone within the number of hours 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 Hours Task 1: Project Commencement and Community Engagement Strategy 1697 Task 2: Document Review Coordination 113 Task 3: Public and Community Meetings, Community Working Group Meetings, and Technical Advisory Meetings 62 DocuSign Envelope ID: C8341EF0-AE55-43D1-9519-F86553196D6C Item 9 Attachment B - PA Dwntwn Housing Plan Project Manager Contract, C24187237        Item 9: Staff Report Pg. 65  Packet Pg. 186 of 318  Professional Services Rev. Dec.15, 2020 Page 16 of 20 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 Tasks Labor Categories Hours Hourly Rate Costs Task 1 Project Commencement and Community Engagement Strategy Principal 42 $260 $10,920 Planning Manager / Principal Planner 1241 $195 $241,995 Sr. Planner/Project Manager 414 $170 $70,380 Subtotal $323,295 Task 2 Document Review Coordination Principal 9 $260 $2,340 Planning Manager / Principal Planner 69 $195 $13,455 Sr. Planner/Project Manager 35 $170 $5,950 Subtotal $21,745 Task 3 Public and Community Meetings, Community Working Group Meetings, and Technical Advisory Meetings Principal 14 $260 $3,640 Planning Manager / Principal Planner 32 $195 $6,240 Sr. Planner/Project Manager 16 $170 $2,720 Subtotal $12,600 Sub-total for Services $357,640 Reimbursable Expense $0.00 Total for Services and Reimbursable Expenses $357,640 Additional Services $17,882 Maximum Total Compensation $375,522 DocuSign Envelope ID: C8341EF0-AE55-43D1-9519-F86553196D6C Item 9 Attachment B - PA Dwntwn Housing Plan Project Manager Contract, C24187237        Item 9: Staff Report Pg. 66  Packet Pg. 187 of 318  Professional Services Rev. Dec.15, 2020 Page 17 of 20 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. DocuSign Envelope ID: C8341EF0-AE55-43D1-9519-F86553196D6C Item 9 Attachment B - PA Dwntwn Housing Plan Project Manager Contract, C24187237        Item 9: Staff Report Pg. 67  Packet Pg. 188 of 318  Professional Services Rev. Dec.15, 2020 Page 18 of 20 EXHIBIT C-1 SCHEDULE OF RATES CITY and CONSULTANT may at any time mutually agree to add new position titles, rates, and adjust listed rates so long as the changes do not increase the not to exceed amount as noted in Section 4. CONSULTANT’s schedule of rates is as follows: Principal/Partner $260/hour Planning Director $230/hour Principal Planner/Planning Manager $195/hour Economic Development Director $230/hour Public Policy Manager $225/hour Chief Building Official $170/hour Senior Planner/Project Manager $170/hour Housing Services Consultant $170/hour Associate Planner $140/hour Assistant Planner $130/hour Planning Technician $100/hour Marketing Specialist/Graphic Designer $100/hour Administrative Specialist $90/hour Subconsultant Contracts Direct Billing + 10% oversight fee Rates subject to adjustment January 1st of each year (typically 3-7% increase) DocuSign Envelope ID: C8341EF0-AE55-43D1-9519-F86553196D6C Item 9 Attachment B - PA Dwntwn Housing Plan Project Manager Contract, C24187237        Item 9: Staff Report Pg. 68  Packet Pg. 189 of 318  Professional Services Rev. Dec.15, 2020 Page 19 of 20 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 THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A 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 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. DocuSign Envelope ID: C8341EF0-AE55-43D1-9519-F86553196D6C Item 9 Attachment B - PA Dwntwn Housing Plan Project Manager Contract, C24187237        Item 9: Staff Report Pg. 69  Packet Pg. 190 of 318  Professional Services Rev. Dec.15, 2020 Page 20 of 20 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 TO THE FOLLOWING EMAIL: PURCHASINGSUPPORT@CITYOFPALOALTO.ORG DocuSign Envelope ID: C8341EF0-AE55-43D1-9519-F86553196D6C Item 9 Attachment B - PA Dwntwn Housing Plan Project Manager Contract, C24187237        Item 9: Staff Report Pg. 70  Packet Pg. 191 of 318  City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Transportation Meeting Date: February 26, 2024 Report #:2402-2625 TITLE Approval of Professional Services Contract with Ecology Action for a Not-to-Exceed Amount of $139,968 for City of Palo Alto Safe Routes to School Spring/Fall Programming; CEQA status – categorically exempt (educational program). RECOMMENDATION Approve and authorize the City Manager to execute a Professional Services Contract with Ecology Action for a Not-to-Exceed Amount of $139,968 for City of Palo Alto Safe Routes to School Spring/Fall Programming. EXECUTIVE SUMMARY The vendor will provide comprehensive pedestrian and bicycle safety education to approximately 3,400 Palo Alto Unified School District (PAUSD) students utilizing best practices in terms of age of students, diversity of teaching methods, and course content. The vendor will be responsible for modifying curriculum and teaching techniques to meet the needs of 12 elementary schools. Activities include: · Kindergarten, First Grade, & Fifth Grade Safety Education Grade Level Assemblies · Second Grade Pedestrian Education Walking Field Trips · Third Grade Bicycle Rodeo Support BACKGROUND Every year, the Safe Routes to School program contracts with several vendors who use largely City-developed curriculum to provide pedestrian and bicycle safety education in the Palo Alto Unified School District. This one-year trial of a single-vendor procurement for Safe Routes education services will allow City staff to reduce the amount of time spent procuring and managing multiple contracts so that staff resources can be spent more efficiently to improve locally-developed curriculum, program quality, and reach. Item 10 Item 10 Staff Report        Item 10: Staff Report Pg. 1  Packet Pg. 192 of 318  ANALYSIS The City published the Request for Proposals (RFP) on January 23, 2024. The City received one responsive proposal from Ecology Action. Table #1: Summary of RFP Process Request for Proposals Issued December 29, 2023 Proposals Due January 23, 2024 Number of Firms Notified 175 Number of Firms Notified Directly 3 Number of RFP Downloads 11 Total Days to Respond to RFP 25 Number of Proposals Received 1 Public Link to Solicitation https://procurement.opengov.com/portal/palo- alto-ca/projects/73897 Proposal Price Range $139,968 An evaluation committee comprised of three Office of Transportation City Staff that carefully reviewed firm qualifications and submittals in response to the criteria identified in the RFP. The City’s RFP criteria focused on the quality of the proposal; the quality, performance and effectiveness of the services to be provided by the contractor; and the contractor's experience, including the experience of staff to be assigned to the project, with engagements of similar scope and complexity. The City received one bid under the proposed budget, and the evaluation committee identified that the preferred service provider was sufficiently qualified to conduct the work. Based on this approach, staff recommends contracting with Ecology Action, who provided a comprehensive approach to the scope of work, demonstrated a clear understanding of Palo Alto and its needs, has extensive experience working with Bay Area communities on developing Safe Routes to School Programs, is under budget, and provides exceptional project management. The scope of work of Ecology Action includes the following tasks, to be completed within 5- months, beginning when the contract is executed, anticipated for February 2024: Item 10 Item 10 Staff Report        Item 10: Staff Report Pg. 2  Packet Pg. 193 of 318  Table # 2: Scope of Work Summary Program Description 2024 Season Quantity Requested Minutes per Class/ Assembly Kindergarten Pedestrian Education Assembly 30-minute gradewide assembly teaching pedestrian safety skills Spring 12 30 First Grade Pedestrian Education Assembly 30-minute gradewide assembly teaching pedestrian safety skills Spring 12 30 Second Grade Pedestrian Education Walking Field Trip Create & conduct a 60- minute classroom-based Walking Field Trip activity to give students a real-world exercise in street crossing safety Spring 36 45 Third Grade Bike Rodeo Scanning and Intersection Station Leadership 3 staff manage both student and volunteer participation for Scanning & Intersection Stations 1 & 2 Fall 12 120 Fifth Grade Bike Safety Education Assembly-style PowerPoint for 45-70 students Spring 12 60 POLICY IMPLICATIONS Safe Routes to School Educational Programming improves the quality of active transportation options, takes into consideration important community feedback about the safety of student cyclists, is part of a key City program supporting Comprehensive Plan and Sustainability and Climate Action Plan goals, and is the foundation of more than 30 years of increasing student walking and bicycling to school. This program is consistent with key transportation goals in the City’s Comprehensive Plan 2030, including creating a sustainable transportation system, reducing congestion, and providing a safe environment for all road users. Specific policies and programs include: Policy T-1.16: Promote personal transportation vehicles as an alternative to cars (e.g. bicycles, skateboards, roller blades) to get to work, school, shopping, recreational facilities and transit stops. Program T6.1.2: Develop, distribute, and aggressively promote maps and apps showing safe routes to work, shopping, community services, parks and schools within Palo Alto in Item 10 Item 10 Staff Report        Item 10: Staff Report Pg. 3  Packet Pg. 194 of 318  collaboration with stakeholders, including PAUSD, major employers, TMA's, local businesses and community organizations. Policy T-6.2: Pursue the goal of zero severe injuries and roadway fatalities on Palo Alto city streets. Policy T-6.4: Continue the Safe Routes to School partnership with PAUSD and the Palo Alto Council of PTAs. Policy T-6.5: Support PAUSD adoption of standard Safe Routes to School policies and regulations that address the five E's of education, encouragement, enforcement, engineering and evaluation. Program T6.6.2: Continue to provide educational programs for children and adults, in partnership with community-based educational organizations, to promote safe walking and the safe use of bicycles, including the City-sponsored bicycle education programs in the public schools and the bicycle traffic school program for juveniles. Program T6.6.3: Work with PAUSD and employers to promote roadway safety for all users, including motorized alternatives to cars and bikes such as mopeds and ebikes, through educational programs for children and adults. FISCAL/RESOURCE IMPACT This agreement with Ecology Action is in the amount of $139,968. The FY 2024 Amended Operating Budget has sufficient funding to cover the cost of this contract with no additional budgetary action required. STAKEHOLDER ENGAGEMENT The City provided the public procurement process through its eProcurement platform and notified 175 firms to encourage participation. Of those notified, 11 downloaded the proposal documents and three were notified directly. Safe Routes to School programming events will be organized with Ecology Action acting as a scheduling liaison with the PAUSD site administrators, secretaries, teachers, District staff, and parents. Once scheduled, Ecology Action staff will be deployed to conduct in-school educational programming. Teacher evaluations will be completed on-site for each lesson. ENVIRONMENTAL REVIEW This program is exempted under California Environmental Quality Act (CEQA) regulation 15322 (Educational or Training Programs Involving No Physical Changes). ATTACHMENTS Attachment A: Contract with Ecology Action; Contract C24189849 APPROVED BY: Philip Kamhi, Chief Transportation Official Item 10 Item 10 Staff Report        Item 10: Staff Report Pg. 4  Packet Pg. 195 of 318  Professional Services Rev. Jan 29, 2024 Page 1 of 24 CITY OF PALO ALTO CONTRACT NO. C24189849 AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF PALO ALTO AND ECOLOGY ACTION OF SANTA CRUZ 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 Ecology Action of Santa Cruz, a California corporation located at 877 Cedar Street, Suite 240, Santa Cruz, CA 95060 (“CONSULTANT”). The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this reference: RECITALS A. CITY intends to provide safety education ( the “Project”) and desires to engage a consultant to create bike and pedestrian safety curriculum for K through 5th grade, 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”. DocuSign Envelope ID: 1558DF16-EDE3-458B-8575-E4FA2CBEE1EF Item 10 Attachment A - Contract with Ecology Action; Contract C24189849        Item 10: Staff Report Pg. 5  Packet Pg. 196 of 318  Professional Services Rev. Jan 29, 2024 Page 2 of 24 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 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 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 December 31, 2024 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. 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 Hundred Thirty- Nine Thousand, Nine Hundred Sixty-Eight Dollars ($139,968). The hourly schedule of rates, if applicable, is set out in Exhibit C-1, entitled “SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY. Optional Additional Services Provision (This provision applies only if checked and a not-to-exceed compensation amount for Additional Services is allocated below under this Section 4.) In addition to the not-to-exceed compensation specified above, CITY has set aside the not- to-exceed compensation amount of Dollars ($ ) for the performance of 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. DocuSign Envelope ID: 1558DF16-EDE3-458B-8575-E4FA2CBEE1EF Item 10 Attachment A - Contract with Ecology Action; Contract C24189849        Item 10: Staff Report Pg. 6  Packet Pg. 197 of 318  Professional Services Rev. Jan 29, 2024 Page 3 of 24 “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 quarterly 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 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. DocuSign Envelope ID: 1558DF16-EDE3-458B-8575-E4FA2CBEE1EF Item 10 Attachment A - Contract with Ecology Action; Contract C24189849        Item 10: Staff Report Pg. 7  Packet Pg. 198 of 318  Professional Services Rev. Jan 29, 2024 Page 4 of 24 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 will apply to, and will bind, the heirs, successors, executors, administrators and assignees of the parties. DocuSign Envelope ID: 1558DF16-EDE3-458B-8575-E4FA2CBEE1EF Item 10 Attachment A - Contract with Ecology Action; Contract C24189849        Item 10: Staff Report Pg. 8  Packet Pg. 199 of 318  Professional Services Rev. Jan 29, 2024 Page 5 of 24 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 Juan Castillo, jcastillo@ecoact.org, (831) 515-1349 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 Rose Mesterhazy, Transportation Department, 250 Hamilton Avenue, Palo Alto, CA, 94301, Telephone: (650) 329-2157. 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. DocuSign Envelope ID: 1558DF16-EDE3-458B-8575-E4FA2CBEE1EF Item 10 Attachment A - Contract with Ecology Action; Contract C24189849        Item 10: Staff Report Pg. 9  Packet Pg. 200 of 318  Professional Services Rev. Jan 29, 2024 Page 6 of 24 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 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 DocuSign Envelope ID: 1558DF16-EDE3-458B-8575-E4FA2CBEE1EF Item 10 Attachment A - Contract with Ecology Action; Contract C24189849        Item 10: Staff Report Pg. 10  Packet Pg. 201 of 318  Professional Services Rev. Jan 29, 2024 Page 7 of 24 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 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 DocuSign Envelope ID: 1558DF16-EDE3-458B-8575-E4FA2CBEE1EF Item 10 Attachment A - Contract with Ecology Action; Contract C24189849        Item 10: Staff Report Pg. 11  Packet Pg. 202 of 318  Professional Services Rev. Jan 29, 2024 Page 8 of 24 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. 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 DocuSign Envelope ID: 1558DF16-EDE3-458B-8575-E4FA2CBEE1EF Item 10 Attachment A - Contract with Ecology Action; Contract C24189849        Item 10: Staff Report Pg. 12  Packet Pg. 203 of 318  Professional Services Rev. Jan 29, 2024 Page 9 of 24 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 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. DocuSign Envelope ID: 1558DF16-EDE3-458B-8575-E4FA2CBEE1EF Item 10 Attachment A - Contract with Ecology Action; Contract C24189849        Item 10: Staff Report Pg. 13  Packet Pg. 204 of 318  Professional Services Rev. Jan 29, 2024 Page 10 of 24 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). 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. 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 DocuSign Envelope ID: 1558DF16-EDE3-458B-8575-E4FA2CBEE1EF Item 10 Attachment A - Contract with Ecology Action; Contract C24189849        Item 10: Staff Report Pg. 14  Packet Pg. 205 of 318  Professional Services Rev. Jan 29, 2024 Page 11 of 24 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 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. DocuSign Envelope ID: 1558DF16-EDE3-458B-8575-E4FA2CBEE1EF Item 10 Attachment A - Contract with Ecology Action; Contract C24189849        Item 10: Staff Report Pg. 15  Packet Pg. 206 of 318  Professional Services Rev. Jan 29, 2024 Page 12 of 24 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. 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 B: SCHEDULE OF PERFORMANCE EXHIBIT C: COMPENSATION EXHIBIT D: INSURANCE REQUIREMENTS THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS ARE ATTACHED. DocuSign Envelope ID: 1558DF16-EDE3-458B-8575-E4FA2CBEE1EF Item 10 Attachment A - Contract with Ecology Action; Contract C24189849        Item 10: Staff Report Pg. 16  Packet Pg. 207 of 318  Professional Services Rev. Jan 29, 2024 Page 13 of 24 CONTRACT No. C24189849 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 ECOLOGY ACTION OF SANTA CRUZ Officer 1 By: Name: Title: Officer 2 By: Name: Title: DocuSign Envelope ID: 1558DF16-EDE3-458B-8575-E4FA2CBEE1EF Juan Castillo Sr. Program Specialist Kira Ticus Budget and Operations Analyst Item 10 Attachment A - Contract with Ecology Action; Contract C24189849        Item 10: Staff Report Pg. 17  Packet Pg. 208 of 318  Professional Services Rev. Jan 29, 2024 Page 14 of 24 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. This Scope of Work involves providing comprehensive pedestrian and bicycle safety education to approximately 3500 Palo Alto Unified School District (PAUSD) students utilizing best practices in terms of age of delivery, diversity of teaching methods and course content. The vendor will be responsible for modifying curriculum and teaching techniques to best adapt to meet the need of 12 elementary schools. Activities are listed below and included in the attached table. • Kindergarten and First Grade Pedestrian Education Classroom Lessons • Second Grade Pedestrian Education Walking Field Trip • Third Grade Bike Rodeo Scanning Station Leadership • Fifth Grade Bike Safety Education DocuSign Envelope ID: 1558DF16-EDE3-458B-8575-E4FA2CBEE1EF Item 10 Attachment A - Contract with Ecology Action; Contract C24189849        Item 10: Staff Report Pg. 18  Packet Pg. 209 of 318  Professional Services Rev. Jan 29, 2024 Page 16 of 24 DocuSign Envelope ID: 1558DF16-EDE3-458B-8575-E4FA2CBEE1EF Item 10 Attachment A - Contract with Ecology Action; Contract C24189849        Item 10: Staff Report Pg. 19  Packet Pg. 210 of 318  Professional Services Rev. Jan 29, 2024 Page 18 of 24 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 Days/Weeks (as specified below) 1. Complete Kindergarten Assemblies Prior to May 3, 2024 2. Complete First Grade Assemblies Prior to May 3, 2024 3. Complete Second Grade Education Between March 4 and May 3, 2024 4. Complete 3rd Grade Bike Rodeo Support Prior to November 1, 2024 5. Complete Fifth Grade Education Between April 8 and May 3, 2024 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. DocuSign Envelope ID: 1558DF16-EDE3-458B-8575-E4FA2CBEE1EF Item 10 Attachment A - Contract with Ecology Action; Contract C24189849        Item 10: Staff Report Pg. 20  Packet Pg. 211 of 318  Professional Services Rev. Jan 29, 2024 Page 19 of 24 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. In the event that public health conditions prevent in-person education, the City will pay a pro-rated fee for the number of lessons taught at $1,716 per second grade lesson/field trip, $1,666 per assembly or $1,518 per Third Grade Rodeo Staff Support. BUDGET SCHEDULE TASK NOT TO EXCEED AMOUNT First Grade Pedestrian Education Total for Services and Reimbursable Expenses $ Maximum Total Compensation $ REIMBURSABLE EXPENSES CONSULTANT’S ordinary business expenses, such as administrative, overhead, administrative support time/overtime, information systems, software and hardware, DocuSign Envelope ID: 1558DF16-EDE3-458B-8575-E4FA2CBEE1EF Item 10 Attachment A - Contract with Ecology Action; Contract C24189849        Item 10: Staff Report Pg. 21  Packet Pg. 212 of 318  Professional Services Rev. Jan 29, 2024 Page 20 of 24 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. DocuSign Envelope ID: 1558DF16-EDE3-458B-8575-E4FA2CBEE1EF Item 10 Attachment A - Contract with Ecology Action; Contract C24189849        Item 10: Staff Report Pg. 22  Packet Pg. 213 of 318  Professional Services Rev. Jan 29, 2024 Page 22 of 24 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 AT THE FOLLOWING EMAIL: 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. DocuSign Envelope ID: 1558DF16-EDE3-458B-8575-E4FA2CBEE1EF Item 10 Attachment A - Contract with Ecology Action; Contract C24189849        Item 10: Staff Report Pg. 23  Packet Pg. 214 of 318  Professional Services Rev. Jan 29, 2024 Page 23 of 24 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 SENT TO THE FOLLOWING EMAIL: PURCHASINGSUPPORT@CITYOFPALOALTO.ORG DocuSign Envelope ID: 1558DF16-EDE3-458B-8575-E4FA2CBEE1EF Item 10 Attachment A - Contract with Ecology Action; Contract C24189849        Item 10: Staff Report Pg. 24  Packet Pg. 215 of 318  4 0 4 8 City Council Staff Report Report Type: CONSENT CALENDAR Lead Department: City Clerk Meeting Date: February 26, 2024 Report #:2402-2631 TITLE SECOND READING: Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 (Street, Trees, Shrubs, and Plants) and Chapter 8.10 (Tree Preservation and Management Regulations) (FIRST READING: January 16, 2024 PASSED 5-2, Lythcott-Haims, Tanaka no) BACKGROUND The ordinance has been amended to reflect part B of the Council’s motion. Specifically, a provision was added to Section 8.10.070 to require requests to prune trees in excess of the limits in Section 8.10.020(i) to be submitted to the urban forester fourteen days before pruning the tree with a statement explaining why pruning beyond the limits is warranted. During passage of the tree ordinance updates in January, staff confirmed during the council questions that based on CAO analysis of PAMC Chapter 18.09, the updated Title 8 and applicable state law, the tree ordinance would not apply to stand alone Table 1 ADU’s. Staff did not recommend adding specific language to that effect at that time. At the second reading of the tree ordinance updates, several council members expressed concern that the updated tree ordinance did not explicitly state that PAMC 18.09 Table 1 ADUs were exempt. At councils’ direction, the following proposed language has been added as 8.10.050 (b)(4) to address this: The tree is proposed for removal to accommodate an ADU constructed pursuant to Section 18.09.030, or because removal is necessary to allow an ADU constructed pursuant to Section 18.09.040 to achieve the minimum standards set forth in state law. ATTACHMENTS Attachment A: Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 (Street, Trees, Shrubs, and Plants) and Chapter 8.10 (Tree Preservation and Management Regulations). APPROVED BY: Mahealani Ah Yun Item 11 Item 11 Staff Report        Item 11: Staff Report Pg. 1  Packet Pg. 216 of 318  *NOT YET APPROVED* Attachment A 1 0010_20240212_mv30 Ordinance No. _____ Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 (Street, Trees, Shrubs, and Plants) and Chapter 8.10 (Tree Preservation and Management Regulations). The Council of the City of Palo Alto ORDAINS as follows: SECTION 1. Chapter 8.04 (Street Trees, Shrubs, and Plants) of Title 8 (Trees and Vegetation) of the Palo Alto Municipal Code is hereby amended to read as follows (additions underlined and deletions struck through): Chapter 8.04 PUBLIC TREES, SHRUBS, HEDGES, AND PLANTS Sections: 8.04.005 Purpose. 8.04.010 Definitions. 8.04.015 Authority of city. 8.04.020 Permit required for certain work. 8.04.030 Application for permit. 8.04.040 Issuance of permit. 8.04.050 Public nuisances. 8.04.070 Enforcement. 8.04.080 Interference with enforcement. 8.04.090 Adoption of regulations. 8.04.005 Purpose. The purpose of this chapter is to protect and promote trees, shrubs, hedges, and plants located on public property within the city. In establishing these procedures and standards, the city recognizes that trees, shrubs, hedges, and plants are an essential part of the city's infrastructure, with benefits that include promoting the health, safety, welfare, and quality of life of the residents of the city; addressing climate change by sequestering carbon and providing a cooling effect; reducing air, water, and noise pollution; preventing soil erosion and Item 11 Attachment A - Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 (Street Trees Shrubs and Plants) and Chapter 8.10 (Tree Preservation and Management Regulations)        Item 11: Staff Report Pg. 2  Packet Pg. 217 of 318  *NOT YET APPROVED* Attachment A 2 0010_20240212_mv30 stormwater runoff; providing wildlife habitat; and enhancing the aesthetic environment. It is the city's intent to encourage the preservation of trees, shrubs, hedges, and plants. 8.04.010 Definitions. For the purposes of this title, the following words shall have the meaning ascribed to them in this section: (a) "Person" means individuals, firms, associations and corporations, and agents, employees or representatives thereof. (b) "City" means the city of Palo Alto acting by and through its authorized representatives. (c) "Street" means and includes all land lying between the boundaries of property abutting on all public streets, boulevards, alleys, and walks. (d) "Parks" means and includes all parks to which names have been given by action of the city council. (e) "Public places" means and includes all grounds, other than streets or parks, owned by, leased to, or under the control of the city of Palo Alto. (f) "Tree" means and includes any woody perennial plant generally having a single main stem and commonly achieving ten feet in height. (g) "Shrub" means and includes any woody perennial plant generally having multiple stems and commonly less than ten feet in height. (h) "Hedge" means and includes any tree, shrub, or plant, when planted in a dense, continuous line or area, as to form a thicket or barrier. (i) "Plant" means and includes all vegetation other than trees and shrubs. (j) "Public trees, shrubs, hedges, and plants" means and includes any tree, shrub, hedge, or plant in any street, park, or public place in the city of Palo Alto. (k) "Urban forester" means public works department staff including the urban forester or their designee. (l) "Tree permit" means a permit issued by the urban forester for one or more of the following purposes: (1) To permit removal of a public tree. (2) To permit public tree care, work, or treatment. (3) To permit removal of a protected tree under 8.10.050. (4) To establish a tree preservation bond. (5) For payment of "in-lieu" fees for required mitigation measures. Item 11 Attachment A - Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 (Street Trees Shrubs and Plants) and Chapter 8.10 (Tree Preservation and Management Regulations)        Item 11: Staff Report Pg. 3  Packet Pg. 218 of 318  *NOT YET APPROVED* Attachment A 3 0010_20240212_mv30 8.04.015 Authority of city. The city of Palo Alto shall have control of all public trees, shrubs, hedges, and plants now or hereafter in any street, park or public place within the city limits, and shall have the authority to plant, care for, remove, replace, and maintain such trees, shrubs, hedges, and plants. 8.04.020 Permit required for certain work. Unless authorized by a tree permit or other city approval, no person shall do any of the following: (a) Plant, prune, trim, shape, remove, top, or in any way damage, destroy, injure or mutilate a public tree, shrub, hedge, or plant. A tree permit is not required for a property owner, resident, or their agent to maintain shrubs, hedges, or plants located within the city right-of- way associated with their property. (b) Fasten a sign, wire, or injurious material to any public tree, shrub, hedge, or plant. (c) Excavate any ditch or tunnel; or place concrete or other pavement within a distance of ten feet of the center of the trunk of any public tree. 8.04.030 Application for permit. Any person desiring to do any of the work described in Section 8.04.020 may apply for a tree permit so to do. The applicant shall state the nature of the work and the location where it will be done. 8.04.040 Issuance of permit. A tree permit shall be issued authorizing work that meets all the following conditions: (a) Will not create, continue, or aggravate any hazardous condition, or public nuisance. (b) Will not prevent or interfere with the growth, location or planting of any approved public tree. (c) Is consistent with the planting plan being followed by the city. 8.04.050 Public nuisances*. Any of the following are, for the purposes hereof, defined to be public nuisances: (a) Any dead, diseased, infested, or dying tree, shrub, hedge, or plant in any street or on any public or private property so near to any public tree, shrub, hedge, or plant as to constitute a danger to a public tree, shrub, hedge, or plant, or street, or portion thereof or public property. (b) Any tree, shrub, hedge, or plant on any private property or in any street, of a type or species that will destroy, impair, or otherwise interfere with any street improvement, sidewalk, curb, approved public tree, gutter, sewer, other public improvement, including utility mains and services, or a public tree, shrub, hedge, or plant. Item 11 Attachment A - Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 (Street Trees Shrubs and Plants) and Chapter 8.10 (Tree Preservation and Management Regulations)        Item 11: Staff Report Pg. 4  Packet Pg. 219 of 318  *NOT YET APPROVED* Attachment A 4 0010_20240212_mv30 (c) Any tree limb, shrub, hedge, or plant reaching a height more than three feet above the curb grade adjacent thereto, except a tree trunk having no limbs lower than nine feet above curb grade, within the thirty-five foot triangle of public or private property, measured from the projected curb lines, at the intersections of any street improved for vehicular traffic where either traffic signals, stop signs, or yield signs are not installed, or at any intersections which are determined by the chief transportation official to contain a tree limb, shrub, hedge, or plant that obscures or impairs the view of a passing motorist, cyclist or pedestrian so as to create a safety hazard. (d) Vines or climbing plants growing into or over any public tree, shrub, hedge, or plant; or any public hydrant, pole or electrolier. (e) Existence of any tree within the city limits that is infested or infected with objectionable insects, scale, fungus, or growths that are included in the California Department of Food and Agriculture’s detection and eradication programs or that are growth injurious to trees. (f) The existence of any branches or foliage which interfere with visibility on, free use of, access to, or obstruct public vehicular or pedestrian travel on any portion of any street improved for vehicular or pedestrian travel. (g) Hedges or dense, thorny shrubs and plants on any street or part thereof. (h) Shrubs and plants more than two feet in height in any tree well or planting strip between the sidewalk and curb, measured above top of curb grade. (i) Any tree, shrub, hedge, or plant declared a public nuisance pursuant to state law and ordered removed by a court of competent jurisdiction. * Abatement procedure - See Chapter 9.56 of this code. 8.04.070 Enforcement. (a) Violation of any provision of this chapter is a misdemeanor, punishable as provided in this code. Each day of violation constitutes a separate offense and may be separately punished. (b) Persons employed in the following designated employee positions are authorized to exercise the authority provided in California Penal Code Section 836.5 and are authorized to issue citations for violations of this chapter, including but not limited to leveling fines under the city's administrative penalty authority: assistant director of public works public services division, urban forester, project manager in the urban forestry section, landscape architect, and code enforcement officer. (c) Any person who damages a public tree, through any act or omission, whenever such act or omission is prohibited by or not authorized pursuant to this chapter, may be liable civilly in a sum not to exceed ten thousand dollars per tree, or the reproduction cost of each such tree, whichever amount is higher. Item 11 Attachment A - Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 (Street Trees Shrubs and Plants) and Chapter 8.10 (Tree Preservation and Management Regulations)        Item 11: Staff Report Pg. 5  Packet Pg. 220 of 318  *NOT YET APPROVED* Attachment A 5 0010_20240212_mv30 (d) Injunctive relief. A civil action may be commenced to abate, enjoin, or otherwise compel the cessation of such violation. (e) Costs. In any civil action brought pursuant to this chapter in which the city prevails, the court shall award to the city all costs of investigation and preparation for trial, the costs of trial, reasonable expenses including overhead and administrative costs incurred in prosecuting the action, and reasonable attorney fees. (f) The remedies and penalties provided in this section are cumulative and not exclusive. 8.04.080 Interference with enforcement. No person shall interfere with or delay the authorized representatives of the city from the execution and enforcement of this chapter, except as provided by law. 8.04.090 Adoption of regulations. The city may adopt regulations prescribing standards of landscaping and planting of streets, parks and public places, therein. A copy of such regulations shall be available for public inspection upon request, and all work performed in streets, parks or public places shall be performed in accordance therewith. SECTION 2. Chapter 8.10 (Tree and Landscape Preservation Management) of Title 8 (Trees and Vegetation) of the Palo Alto Municipal Code is hereby amended to read as follows (additions underlined and deletions struck through): Chapter 8.10 TREE AND LANDSCAPE PRESERVATION AND MANAGEMENT* Sections: 8.10.010 Purpose. 8.10.020 Definitions. 8.10.030 Tree and Landscape Technical Manual. 8.10.040 Disclosure of information regarding existing trees. 8.10.050 Removal of protected trees. 8.10.055 Tree replacement. 8.10.060 No limitation of authority under Titles 16 and 18. 8.10.070 Care of protected trees. 8.10.080 Development conditions. 8.10.090 Designation of heritage trees. Item 11 Attachment A - Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 (Street Trees Shrubs and Plants) and Chapter 8.10 (Tree Preservation and Management Regulations)        Item 11: Staff Report Pg. 6  Packet Pg. 221 of 318  *NOT YET APPROVED* Attachment A 6 0010_20240212_mv30 8.10.092 Tree removal in wildland- urban interface area. 8.10.095 Tree removal in Hospital District Zone. 8.10.100 Enforcement. 8.10.110 Remedies for violation. 8.10.120 Fees. 8.10.130 Severability. 8.10.140 Applications, notice, and appeals. 8.10.010 Purpose. The purpose of this chapter is to protect specified trees located on private property within the city, and establish standards for removal, maintenance, and planting of trees and landscaping. In establishing these procedures and standards, the city recognizes that trees and landscaping are an essential part of the city's infrastructure. Their benefits include promoting the health, safety, welfare, and quality of life of the residents of the city; addressing climate change by sequestering carbon and providing a cooling effect; reducing air, water, and noise pollution; preventing soil erosion and stormwater runoff; providing wildlife habitat; and enhancing the aesthetic environment. It is the city's intent to encourage both the preservation of trees and the proactive incorporation of trees and their benefits within development. 8.10.020 Definitions. For the purposes of this chapter, terms defined in Chapter 8.04 shall have the same meanings in this chapter, and the following terms shall have the meaning ascribed to them in this section: (a) "Basal flare" means that portion of a tree where there is a rapid increase in diameter at the confluence of the root crowntrunk and trunkrootcrown. (b) "Buildable area" means that area of a parcel: (1) Upon which, under applicable zoning regulations, a structure may be built without a variance, design enhancement exception, or home improvement exception; or (2) Necessary for construction of primary access to structures located on or to be constructed on the parcel, where there exists no feasible means of access which would avoid protected trees. On single-family residential parcels, the portion of the parcel deemed to be the buildable area for primary access shall not exceed ten feet in width. (c) "Building footprint" means the two-dimensional configuration of a building's perimeter boundaries as measured on a horizontal plane at ground level. Item 11 Attachment A - Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 (Street Trees Shrubs and Plants) and Chapter 8.10 (Tree Preservation and Management Regulations)        Item 11: Staff Report Pg. 7  Packet Pg. 222 of 318  *NOT YET APPROVED* Attachment A 7 0010_20240212_mv30 (d) "Designated arborist" means an arborist certified by the International Society of Arboriculture or another nationally recognized tree research, care, and preservation organization, selected by the urban forester for inclusion in a list of approved arborists to be: hired by: (1) Hired by anAn applicant at their own expense, or (2) Chosen by theThe city at an applicant's expense, if a project includes a public hearing. (e) "Development" means any work upon any property in the city which requires a subdivision, planned community zone, variance, use permit, building permit, demolition permit, or other city approval or which involves excavation, landscaping or construction within the tree protection zonedripline area of a protected tree or is subject to requirements of the California Model Water Efficient Landscape Ordinance (MWELO). (f) "Director of planning and development services" means the director of planning and development services or their designee. (g) "Director of public works" means the director of public works or their designee. (h) "Discretionary development approval" means planned community zone, subdivision, use permit, variance, home improvement exception, design enhancement exception, architectural review board approval, or any proposal or application that requires the discretion of the authorizing person or entity. (i) "Dripline area" means the area defined by the projection to the ground of the outer edge of the canopy or a circle with a radius ten times the diameter of the trunk as measured four and one-half feet (fifty-four inches) above natural grade, whichever is greater. (j) "Excessive pruning" of a protected tree means any of the following: (1) Removal of more than twenty-five percentone-fourth of the functioning leaf, stem, or root area of a tree in any twenty-four-month period. (2) Removal of more than fifteen percent of the functioning root area of any Quercus (oak) species in any thirty-six-month period. (3) Any removal of the functioning leaf, stem, or root area of a tree so as to cause a significant decline in health, increased risk of failure, or the unbalancing of a tree. (jk) "Hazardous" means an imminent hazard which constitutes a high or extreme threat to the safety of persons or property as defined by American National Standards Institute A300, Part 9. (kl) "Protected" tree means any of the following: (1) Any locally native tree of the species Acer macrophyllum (Bigleaf Maple), Calocedrus decurrens (California Incense Cedar), Quercus agrifolia (Coast Live Oak), Quercus douglasii (Blue Oak), Quercus kelloggii (California Black Oak), or Quercus lobata (Valley Oak) which is eleven Item 11 Attachment A - Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 (Street Trees Shrubs and Plants) and Chapter 8.10 (Tree Preservation and Management Regulations)        Item 11: Staff Report Pg. 8  Packet Pg. 223 of 318  *NOT YET APPROVED* Attachment A 8 0010_20240212_mv30 and one-half inches in diameter (thirty-six inches in circumference) or more when measured four and one-half feet (fifty-four inches) above natural grade. (2) Any Coast Redwood tree (species Sequoia sempervirens) that is eighteen inches in diameter (fifty-seven inches in circumference) or more when measured four and one-half feet (fifty-four inches) above natural grade. (3) Any tree, other larger than a Coast Redwood Tree, fifteen inches in diameter (forty-seven inches in circumference) or more when measured four and one-half feet (fifty-four inches) above natural grade of any species except those invasive species described as weeds in Section 8.08.010 and those species classified as high water users by the Water Use Classificationwater use classification of Landscape Speciesthe landscape species list (WUCOLS) approved by the California Department of Water Resources. (4) Any tree designated for protection during review and approval (with the exception of a current or previously completed development project. On parcels zoned other than single- family (R-1) or low density (RE, R-2, or RMD) residential, species exempted under subsection (3) of this Section may be designated as a protected tree.Coast Redwood). (4) Any tree designated for protection during review and approval of a development project. (5) Any tree designated for carbon sequestration and storage and/or environmental mitigation purposes as identified in an agreement between the property owner and a responsible government agency or recorded as a deed restriction. (6) Any heritage tree designated by the city council in accordance with the provisions of this chapter. (7) Any replacement mitigation tree or other tree designated to be planted due to the conditions listed in Section 8.10.055. (lm) "Protected tree removal permit" means a permit issued to allow a person to remove a protected tree. (m) “Right tree in the right place principles” means the set of principles that determine if a tree is located in an appropriate location for its specific species requirements and characteristics, in accordance with the factors listed in the Tree and Landscape Technical Manual. (n) "Remove" or "removal" means: (1) Complete removal, such as cutting to the ground or extraction, of a tree; or (2) Taking any action foreseeably leading to the death of a tree or permanent damage to its health; including but not limited to excessive pruning, cutting, topping, girdling, poisoning, overwatering, underwatering, unauthorized relocation or transportation of a tree, or trenching, excavating, altering the grade, or paving within the tree protection zonedripline area of a tree. Item 11 Attachment A - Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 (Street Trees Shrubs and Plants) and Chapter 8.10 (Tree Preservation and Management Regulations)        Item 11: Staff Report Pg. 9  Packet Pg. 224 of 318  *NOT YET APPROVED* Attachment A 9 0010_20240212_mv30 (o) “Retrenchment” means the process in which trees may reconfigure as they age and deteriorate, often continuing to grow in trunk diameter while branches die and fail. (p) "Tree Protection Zone" means the area defined by a circle with a radius ten times the diameter of the trunk when measured four and one-half feet (fifty-four inches) above natural grade. (q) "Tree Reportreport" means a report prepared by a designated arborist. (rp) "Tree and Landscape Technical Manual" means the regulations issued by the city manager to implement this chapter. 8.10.030 Tree and Landscape Technical Manual. The city manager, through the urban forestry section, and public works and planning and development services departments, shall issue regulations necessary for implementation and enforcement of this chapter, which shall be known as the Tree and Landscape Technical Manual. In the event of a conflict between the provisions of this Title 8 and the Tree and Landscape Technical Manual, this Title 8 shall prevail. The Tree and Landscape Technical Manual will be made readily available to the public and shall include, but need not be limited to, standards and specifications regarding the following: (a) Protection of trees during construction. (b) Replacement of trees allowed to be removed pursuant to this chapter where such replacements: (1) Prioritize the use of locally native species, as listed in Section 8.10.020(l)(1), consistent with Urban Forest Master Plan Goal 2: "Re-generated native woodland and riparian landscapes as the key ecological basis of the urban forest with focus on native species and habitat;" (2) Include climate adaptive, drought tolerant, non-native species as needed to satisfy right tree in the right place principles; and (3) Incorporate a secondary goal of net tree canopy increase on the property within fifteen years. (c) Maintenance of protected trees (including but not limited to pruning, irrigation, and protection from disease). (d) The format and content of tree reports required to be submitted to the city pursuant to this chapter. (e) The criteria for determining whether a tree is hazardous within the meaning of this chapter. (f) Landscape design, irrigation, and installation standards consistent with the city's water efficient landscape regulations. Item 11 Attachment A - Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 (Street Trees Shrubs and Plants) and Chapter 8.10 (Tree Preservation and Management Regulations)        Item 11: Staff Report Pg. 10  Packet Pg. 225 of 318  *NOT YET APPROVED* Attachment A 10 0010_20240212_mv30 8.10.040 Disclosure of information regarding existing trees. (a) Any application for development or demolition shall be accompanied by a statement by a designated arborist which discloses whether any protected trees exist on the property which is the subject of the application, and describing each such tree, its species, size, tree protection zonedripline area, and location. This requirement shall be met by including the information on plans submitted in connection with the application. (1) Notwithstanding subsection (a), applications involving only the development of an Accessory Dwelling Unit that conforms to Section 18.09.030, Table 1, require only a statement disclosing whether any protected trees are located on the property which is the subject of the application. This statement may be completed by the applicant. (b) In addition, the location and species of anyall other tree which is four inches in diameter (e.g., thirteen inches in circumference) or more when measured four and one-half feet (fifty- four inches) above natural grade shall be shown on the plans if the tree is: (1) On the property or trees on the property and in the adjacent public right-of-way, and is which are within thirty feet of the building footprint proposed for development, or (2) Locatedand trees located on adjacent property within thirty feet of the proposed building footprint, or (1)(3) Close enough that its canopy overhangswith canopies overhanging the project site, shall be shown on the plans, identified by species. (c) The director of public works or urban forester may require submittal of such other information as is necessary to further the purposes of this chapter including but not limited to photographs. (d) Disclosure of information regarding private protected trees pursuant to this section shall not be required when the development for which the approval or permit is sought does not involve any change in an existing building footprint nor any grading, trenching, paving, or any change in landscaping which could alter water availability to established plants, hedges, shrubs, or trees. (e) The urban forester or the designated arborist for a project shall add identified protected trees into the city's tree inventory database, and in coordination with the planning and development services departments, into city parcel reports. (f) Knowingly or negligently providing false or misleading information in response to this disclosure requirement shall constitute a violation of this chapter. 8.10.050 Removal of protected trees. It shall be a violation of this chapter for anyone to remove or cause to be removed a protected tree, except pursuant to a protected tree removal permit issued under Section 8.10.140 consistent with the following: Item 11 Attachment A - Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 (Street Trees Shrubs and Plants) and Chapter 8.10 (Tree Preservation and Management Regulations)        Item 11: Staff Report Pg. 11  Packet Pg. 226 of 318  *NOT YET APPROVED* Attachment A 11 0010_20240212_mv30 (a) In the absence of proposed development: (1) A protected tree shall not be removed unless the urban forester grants a protected tree removal permit, or on parcels zoned other than single-family (R-1) or low density residential (RE, R-2, or RMD), the director of planning and development services authorizes the removal through staff level architectural review pursuant to Section 18.76.020(b)(3), having determined, on the basis of a tree report prepared by a designated arborist and other relevant information, that treatments or corrective practices are not feasible, and that the tree should be removed because any of the following apply: (i) It is dead, is hazardous, or constitutes a public nuisance under Section 8.04.050 of this code. (ii) It is a detriment to or is crowding an adjacent protected tree. , or is impacting the foundation or eaves of a residence or any covered parking required under Title 18. (iii) It is at risk for retrenchment or other tree decline coping processes or does not conform with right tree in the right place principles. (iv) It is impacting the foundation or eaves of a residence, or any covered parking required under Title 18 of this code. (2) In the event a protected tree is removed pursuant to a protected tree removal permit granted under this subsection (a), a temporary moratorium on development of the subject property may be issued by the urban forester for up to twenty-four months or by, the director of planning and development services, in consultation with the urban forester, for up tomay issue a temporary moratorium on development of the subject property not to exceed thirty-six months, from the date the tree removal occurred. Completion of requiredFor any moratorium less than thirty-six months, the urban forester shall determine appropriate mitigation measures included infor the tree removal permit does not remove or shorten any such moratorium. A moratorium may be terminated early with approval of the urban forester or director of planning, and development services, as applicable, and may require additional mitigationensure measures. are incorporated into any future development approvals for the property. Mitigation measures included in the protected tree removal permit and any additional mitigation measures required to shorten a moratoriumas determined by the urban forester shall be imposed as a condition of any subsequent permits for development on the subject property. (b) In the case of any development on a single-family (R-1) or low density (RE, R-2, or RMD) residential zoned parcel, other than in connection with a subdivision, a protected tree shall not be removed unless determined by the urban forester, on the basis of a tree report prepared by a designated arborist and other relevant information, that any of the following apply: (1) The tree is so close to the proposed development that construction would result in the death of the tree, and there is no financially feasible design alternative that would permit preservation of the tree, where financially feasible means an alternative that preserves the tree unless retaining the tree would increase project cost by more than twice the reproduction cost of the tree or ten percent of the given project valuation, whichever is greater. Item 11 Attachment A - Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 (Street Trees Shrubs and Plants) and Chapter 8.10 (Tree Preservation and Management Regulations)        Item 11: Staff Report Pg. 12  Packet Pg. 227 of 318  *NOT YET APPROVED* Attachment A 12 0010_20240212_mv30 (2) Retention of one or more trees would result in reduction of the otherwise-permissible buildable area of the lot by more than twenty-five percent, and there is no financially feasible design alternative that would allow for preservation of the tree(s). For the purposes of this subsection (a)(2), a financially feasible design alternative means a design alternative that preserves the tree(s) and would not increase the project cost by more than twice the reproduction cost of the tree(s) or ten percent of the given project valuation, whichever is greater. All tree protection zones impacting buildable area are included in the reduction of buildable area calculation. (1)(3) The tree could be removed due to the conditions listed in Section 8.10.050(a)(1)(i), (ii) or (iii) (2) The tree could be removed due to the conditions listed in Section 8.10.050(a)(1) and treatments or corrective practices are not feasible. (2)(4) The tree is proposed for removal to accommodate an ADU constructed pursuant to Section 18.09.030, or because removal is necessary to allow an ADU constructed pursuant to Section 18.09.040 to achieve the minimum standards set forth in state law. (c) In the case of development involving a proposed subdivision of land into two or more parcels, a protected tree shall not be removed unless determined by the urban forester, on the basis of a tree report prepared by a designated arborist and other relevant information, that either of the following apply: (1) Removal is unavoidable due to restricted access to the property or deemed necessary to repair a geologic hazard (landslide, repairs, etc.), in which case only the protected tree or trees necessary to allow access to the property or repair the geologic hazard may be removed. (2) The tree could be removed due to the conditions listed in subsection (a)(1)(i), (ii), or (iii) and treatments or corrective practices are not feasible. (d) In the case of development requiring planning approval under Title 18, and not included under subsections (b) or (c), a protected tree shall not be removed unless determined by the urban forester, on the basis of a tree report prepared by a designated arborist and other relevant information, that anyeither of the following apply: (1) Retention of one or more treesthe tree would result in reduction of the otherwise- permissible buildable area of the lot by more than twenty-five percent, and there is no financially feasible design alternative that would permit preservation of the tree(s),, where financially feasible means an alternative that preserves the tree(s) unless retaining the tree(s) would increase project cost by more than twice the reproduction cost of the tree or ten percent of the given project valuation, whichever is greater. All tree protection zones impacting buildable area are included in the reduction of buildable area calculation. (2) The tree should be removed because it is dead, hazardous, or constitutes a public nuisance under Section 8.04.050. In such cases, the tree protection zonedripline area of the removed tree, or an equivalent area on the site, shall be preserved for mitigation purposes from development of any structure. Item 11 Attachment A - Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 (Street Trees Shrubs and Plants) and Chapter 8.10 (Tree Preservation and Management Regulations)        Item 11: Staff Report Pg. 13  Packet Pg. 228 of 318  *NOT YET APPROVED* Attachment A 13 0010_20240212_mv30 (3) Discretionary development review determines that the final project follows right tree in the right place principles and would result in a net tree canopy increase on the property within fifteen years, and replacement of trees, shrubs, and plants either: (i) Is consistent with Urban Forest Master Plan Goal 2: "Re-generated native woodland and riparian landscapes as the key ecological basis of the urban forest with focus on native species and habitat," or (ii) Uses climate adaptive, drought tolerant species. (e) In any circumstance other than those described in subsections (a), (b), (c), or (d), a protected tree shall not be removed unless determined by the urban forester, on the basis of a tree report prepared by a designated arborist and other relevant information, that the tree is dead, is hazardous, or constitutes a public nuisance under Section 8.04.050. 8.10.055 Tree replacement. (a) In the event a protected tree is removed pursuant to Section 8.10.050(a)(1)(i), mitigation for the removed tree, replacement tree ratio, in lieu fees, or a combination thereof shall be determined by the urban forester, based on factors including but not limited to the species, size, location, and specific reason for removal of the protected tree, in accordance with the standards and specifications in the Tree and Landscape Technical Manual. (b) In the event a protected tree is removed pursuant to Section 8.10.050(a)(1)(ii), (iii) or (iv), (b), (c), (d), or (e), the tree removed shall be replaced in accordance with the standards and specifications in the Tree and Landscape Technical Manual, including but not limited to prioritization of locally native species, satisfaction of right tree in the right place principles, and incorporation of a secondary goal of net tree canopy increase on the property within fifteen years. The urban forester shall approve the number, species, size, and location of replacement trees. 8.10.060 No limitation of authority under Titles 16 and 18. Nothing in this chapter limits or modifies the existing authority of the city under Title 18 to require trees, shrubs, hedges, and other plants not covered by this chapter to be identified, retained, protected, and/or planted as conditions of the approval of development. In the event of conflict between provisions of this chapter and conditions of any permit or other approval granted pursuant to Title 16 or Title 18, the more protective requirements shall prevail. 8.10.070 Care of protected trees. (a) All owners of property containing protected trees shall follow the maintenance standards in the Tree and Landscape Technical Manual, including avoiding any action foreseeably leading to the death of a tree or permanent damage to its health; including but not limited to excessive pruning, cutting, topping, girdling, poisoning, overwatering, underwatering, unauthorized relocation or transportation of a tree, or trenching, excavating, altering the grade, or paving within the tree protection zonedripline area of a tree. Item 11 Attachment A - Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 (Street Trees Shrubs and Plants) and Chapter 8.10 (Tree Preservation and Management Regulations)        Item 11: Staff Report Pg. 14  Packet Pg. 229 of 318  *NOT YET APPROVED* Attachment A 14 0010_20240212_mv30 (b) At least seven days prior to pruning a protected tree, other than that required to remove a dead, diseased, or broken branch or branches, the property owner or their designee shall prominently post a notice on the property, in one or more locations readily visible to the public, that includes standards for pruning and a description of the tree including tree species, size, location, the date of work, and a contact phone number. The form for such notice will be available on the city's website as a printable document. Protected trees less than five years old are exempt from this provision. (c) Any requests to exceed the limits for pruning set forth in Section 8.10.020(i) shall be submitted to the urban forester by the property owner or their designee at least fourteen days prior to pruning a protected tree. Each request shall be accompanied by a statement explaining why exceedance of the limits is warranted. No pruning that exceeds the limits set forth in Section 8.10.020(i) shall take place without the approval of the urban forester. (cd) The standards for protection of trees during construction contained in the Tree and Landscape Technical Manual shall be followed during any development on property containing trees. (de) The urban forester shall add identified protected trees into the city's tree inventory database and, in coordination with the planning and development services departments, into city parcel reports. 8.10.080 Development conditions. (a) Development approvals for property containing protected public trees shall include appropriate conditions as set forth in the Tree and Landscape Technical Manual, providing for the protection of such trees during construction and for maintenance of such trees thereafter. Trees may be designated for protection that are significant visually or historically, provide screening, or are healthy and important to the nearby ecosystem. (b) It shall be a violation of this chapter for any property owner or agent of the owner to fail to comply with any development approval or building permit condition concerning preservation, protection, and maintenance of any tree, including but not limited to protected trees. 8.10.090 Designation of heritage trees. (a) Upon nomination by any person and with the written consent of the property owner(s), the city council may designate a tree or trees as a heritage tree. (b) A tree may be designated as a heritage tree upon a finding that it is of importance to the community due to any of the following factors: (1) It is an outstanding specimen of a desirable species. (2) It is one of the largest or oldest trees in Palo Alto. (3) It possesses distinctive form, size, age, location, and/or historical significance. Item 11 Attachment A - Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 (Street Trees Shrubs and Plants) and Chapter 8.10 (Tree Preservation and Management Regulations)        Item 11: Staff Report Pg. 15  Packet Pg. 230 of 318  *NOT YET APPROVED* Attachment A 15 0010_20240212_mv30 (c) After council approval of a heritage tree designation, the city clerk shall notify the property owner(s) in writing. A listing of trees so designated, including the specific locations thereof, shall be kept by the departments of public works. (d) Once designated, a heritage tree shall be considered protected and subject to the provisions of this chapter unless removed from the list of heritage trees by action of the city council. The city council may remove a tree from the list upon its own motion or upon written request by the property owner. Request for such action must originate in the same manner as nomination for heritage tree designation. 8.10.092 Tree removal in wildland-urban interface area. Tree removal and relocation in the wildland-urban interface (WUI) area, as defined in Section 15.04.190, shall be subject to the provisions in Chapter 15.04. To the extent Chapter 15.04 is inconsistent with this chapter, Chapter 15.04 shall control. 8.10.095 Tree removal in Hospital District Zone. Tree removal and relocation in the Hospital District (HD) shall be subject to the provisions in Section 18.36.070. To the extent Section 18.36.070 is inconsistent with this chapter, Section 18.36.070 shall control. 8.10.100 Enforcement. (a) Violation of this chapter is a misdemeanor, punishable as provided in this code. Each day of violation constitutes a separate offense and may be separately punished. (b) Persons employed in the following designated employee positions are authorized to exercise the authority provided in California Penal Code Section 836.5 and are authorized to issue citations for violations of this chapter, including but not limited to leveling fines under the city's administrative penalty authority: assistant director of public works public services division, urban forester, project manager in the urban forestry section, landscape architect, and code enforcement officer. 8.10.110 Remedies for violation. In addition to all other remedies set forth in this code or otherwise provided by law, the following remedies shall be available to the city for violation of this chapter: (a) Stop Work - Temporary Moratorium. (1) If a violation occurs in the absence of proposed development pursuant to Section 8.10.050(a)(1), or while an application for a building permit or discretionary development approval for the lot upon which the tree is located is pending, the director of planning and development services in consultation with the urban forester shall issue a temporary moratorium on development of the subject property, not to exceed five years from the date the violation occurred. The purpose of the moratorium is to provide the city an opportunity to study and determine appropriate mitigation measures for the tree removal, and to ensure Item 11 Attachment A - Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 (Street Trees Shrubs and Plants) and Chapter 8.10 (Tree Preservation and Management Regulations)        Item 11: Staff Report Pg. 16  Packet Pg. 231 of 318  *NOT YET APPROVED* Attachment A 16 0010_20240212_mv30 measures are incorporated into any future development approvals for the property. Mitigation measures as determined by the urban forester shall be imposed as a condition of any subsequent permits for development on the subject property. (2) If a violation occurs during development pursuant to Section 8.10.050(b), (c), (d), or (e), the city shall issue a stop work order suspending and prohibiting further activity on the property pursuant to the grading, demolition, and/or building permit(s) (including construction, inspection, and issuance of certificates of occupancy) until a mitigation plan has been filed with and approved by the director of planning and development services in consultation with the urban forester, agreed to in writing by the property owner(s), and either implemented or guaranteed by the posting of adequate security. The mitigation plan shall include measures for protection or repair of any remaining trees on the property, and shall provide for replacement of each tree removed on the property or at locations approved by the urban forester. The replacement ratio shall be in accordance with the standards set forth in the Tree and Landscape Technical Manual, and shall be at least twice the prescribed ratio required where tree removal is permitted pursuant to the provisions of this chapter. (b) Civil penalties. (1) As part of a civil action brought by the city, a court may assess against any person who commits, allows, or maintains a violation of any provision of this chapter a civil penalty in the following amount: (i) Ten thousand dollars per tree, or twice the reproduction cost of each tree, whichever amount is higher, for the complete removal of a tree, as defined in Section 8.10.020(n)(1). (ii) Ten thousand dollars per tree, or the reproduction cost of each tree, whichever amount is higher, for any of the actions set forth in Section 8.10.020(n)(2). (iii) Ten thousand dollars per tree, or twice the repair cost of each tree, whichever amount is higher, for damage to a tree protected or regulated by this chapter which can be rehabilitated. (2) Penalties shall be payable to the city. (3) Reproduction or repair cost for the purposes of this chapter shall be determined utilizing the most recent edition of the Guide for Plant Appraisal, published by the Council of Tree and Landscape Appraisers. (c) Administrative penalties. Persons listed in Section 8.10.100(b) may issue citations for violations of this chapter that level fines under the city's administrative penalty authority. (d) Injunctive relief. A civil action may be commenced to abate, enjoin, or otherwise compel the cessation of such violation. (e) Costs. In any civil action brought pursuant to this chapter in which the city prevails, the court shall award to the city all costs of investigation and preparation for trial, the costs of trial, reasonable expenses including overhead and administrative costs incurred in prosecuting the action, and reasonable attorney fees. Item 11 Attachment A - Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 (Street Trees Shrubs and Plants) and Chapter 8.10 (Tree Preservation and Management Regulations)        Item 11: Staff Report Pg. 17  Packet Pg. 232 of 318  *NOT YET APPROVED* Attachment A 17 0010_20240212_mv30 (f) The remedies and penalties provided in this section are cumulative and not exclusive. 8.10.120 Fees. Tree reports required to be submitted to the city for review and evaluation pursuant to this chapter shall be accompanied by the fee prescribed therefor in the municipal fee schedule. 8.10.130 Severability. If any provision of this chapter or the application thereof to any person or circumstance is held to be invalid by a court of competent jurisdiction, such invalidity shall not affect any other provision of this chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are declared to be severable. 8.10.140 Applications, notice, and appeals. (a) Applications. (1) All applications for removal of a protected tree pursuant to Section 8.10.050 shall be filed in accordance with this section and any applicable provisions of Chapter 18.77. Applications for removal of protected trees on non-residential zoned properties will follow review guidelines set forth in Section 8.10.050(d) and Section 18.76.020 and will follow the process set forth in Section 18.77.070. (2) The application form shall be prescribed by the urban forester and shall contain a list of information that must be submitted in order for the application to be deemed complete. (3) Each application must be signed by all owners of the real property containing the protected tree, or an agent of the owner of record of the real property on which the protected tree occurs, when duly authorized by the owner in writing. (4) No application shall be deemed received until all fees for the application as set forth in the municipal fees schedule have been paid, and all documents specified as part of the application in this chapter or on the application form have been filed. (5) Protected tree removal permits shall automatically expire after twelve months, unless otherwise provided in the permit, from the date of issuance of the permit if within such twelve- month period, the proposed tree has not been removed. (b) Notice. (1) All applications for removal of a protected tree pursuant to Section 8.10.050 shall give notice in accordance with this section, the Tree and Landscape Technical Manual, and any applicable provisions of Chapter 18.77. (2) After submittal of an application to remove a protected tree, notice shall be given consistent with subsection (b)(4) and shall include the date of the proposed removal and the basis for the application. Item 11 Attachment A - Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 (Street Trees Shrubs and Plants) and Chapter 8.10 (Tree Preservation and Management Regulations)        Item 11: Staff Report Pg. 18  Packet Pg. 233 of 318  *NOT YET APPROVED* Attachment A 18 0010_20240212_mv30 (3) Upon determination of a protected tree removal application, notice shall be given consistent with subsection (b)(4) and shall include a description of the decision and how to appeal it. (4) Notices required pursuant to this section shall include the address of the property, a description of the protected tree, including species, size, and location, and urban forestry contact information, and shall be given as follows: (i) In writing to all owners and residents of property within 300 feet of the exterior boundary of the property containing the protected tree, and to all principal urban forestry partner organizations. (ii) By posting on the property, in one or more locations visible to the public. (iii) By posting on the city's website. (c) Appeals. (1) Any person applying to remove a protected tree in the absence of proposed development pursuant to Section 8.10.050(a), and any owner or resident of property within 600 feet of the exterior boundary of the property containing the protected tree, may request a public hearing by the director of public works to review the urban forester's decision, and may appeal the director of public works' determination to the city council. Any such request or appeal shall be filed with the public works department in a manner prescribed by the urban forester. (2) Any person applying to remove a protected tree pursuant to Section 8.10.050(b), (c), (d), or (e), and any owner or resident of property within 600 feet of the exterior boundary of the property containing the protected tree may request a hearing by appeal the director of planning and development services to review the decision. The request for a hearing shall be filed with the planning division in in a manner prescribed by the director of planning and development services. An appeal of the director of planning and development services determination shall be conducted in accordance with the procedures set forth in Chapter 18.78. (3) All appeals must be filed within fourteen days of posting of notice on the property pursuant to subsection (b)(4)(ii). SECTION 3. If any section, subsection, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portion or sections of the Ordinance. The Council hereby declares that it should have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid. SECTION 4. The Council finds that this ordinance is exempt from the provisions of the California Environmental Quality Act (“CEQA”), pursuant to Section 15061 of the CEQA Guidelines, because it can be seen with certainty that there is no possibility that the ordinance will have a significant effect on the environment. Alternatively, the ordinance is also exempt Item 11 Attachment A - Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 (Street Trees Shrubs and Plants) and Chapter 8.10 (Tree Preservation and Management Regulations)        Item 11: Staff Report Pg. 19  Packet Pg. 234 of 318  *NOT YET APPROVED* Attachment A 19 0010_20240212_mv30 under CEQA Guidelines Section 15308 because it involves regulatory action for the protection of the environment. SECTION 5. This ordinance shall be effective on the thirty-first day after the date of its adoption. However, this ordinance shall not apply to any projects that have submitted a complete application as of the ordinance’s effective date. In addition, until such time as a list of designated arborists is established by the Urban Forester, the term “designated arborist” shall mean any arborist certified by the International Society of Arboriculture or another nationally recognized tree research, care, and preservation organization. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Assistant City Attorney City Manager ____________________________ Director of Public Works Item 11 Attachment A - Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 (Street Trees Shrubs and Plants) and Chapter 8.10 (Tree Preservation and Management Regulations)        Item 11: Staff Report Pg. 20  Packet Pg. 235 of 318  City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Human Resources Meeting Date: February 26, 2024 Report #:2402-2647 TITLE Approval of the Appointment of Lauren Lai as the Administrative Services Director/ Chief Financial Officer RECOMMENDATION The City Manager recommends that the City Council approve the appointment of Lauren Lai as the Administrative Services Director/ Chief Financial Officer in alignment with Palo Alto Municipal Code (PAMC) 2.08.202. BACKGROUND The Palo Alto Charter and Municipal Code establish the City Manager as the appointing authority for all officers, department directors, and employees under the City Manager’s control. The Charter and Municipal Code additionally specify that appointments of department heads are subject to the approval of the Council per PAMC section 2.08.020. The Administrative Services Director/ Chief Financial Officer oversees the financial administrative services for the City of Palo Alto whose duties are enumerated in PAMC section 2.08.150. The Administrative Services Department includes the divisions of Finance (accounting, treasury and debt management, purchasing and warehousing, and printing and mailing services); Real Estate (acquisition, disposition, lease management, and easements); and Budget and Financial Planning (budgeting, capital planning, long-range planning, management analysis, and strategic planning). The FY 2024 Administrative Services budget is $11.9 million with 57.98 FTE. The City of Palo Alto selected Teri Black and Company (“TBC”) an experienced executive talent search firm to conduct an extensive recruitment for the next Administrative Services Director/ Chief Financial Officer. TBC notably has done several Finance Director recruitments in the state of California and specifically in the bay area. On August 15, 2023, Teri Black and City staff met with the Finance Committee to seek their input for the key characteristics of candidates for this Item 12 Item 12 Staff Report        Item 12: Staff Report Pg. 1  Packet Pg. 236 of 318  executive position1. Focus groups were completed for Administrative Services Department staff to provide feedback in the process as well. As discussed with the Finance Committee, in response to the challenging recruitment environment, the City engaged in a 5-week advertising, marketing, and direct outreach campaign (contacting over 80 potential candidates) to generate a qualified and competitive candidate pool. DISCUSSION FISCAL/RESOURCE IMPACT APPROVED BY: 1 Finance Committee, August 15, 2023, Item #1, https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=12741 Item 12 Item 12 Staff Report        Item 12: Staff Report Pg. 2  Packet Pg. 237 of 318  City Council Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: Fire Meeting Date: February 26, 2024 Report #:2311-2238 TITLE PUBLIC HEARING: Objections to Weed Abatement at Affected Properties and Approval of Affected Property List for Commencing Weed Abatement in 2024; CEQA status – exempt RECOMMENDATION Staff recommends that Council: a. Adopt a determination that weed abatement activities in 2024, as described in Resolution 10135 (Attachment A) adopted by Council on December 4, 2023, are exempt under Class 8 (CEQA Guidelines section 15308); b. Hold a Public Hearing to hear and consider any objections to the proposed destruction and removal of weeds in 2024 at the properties listed in Attachment B; and c. Approve the final list of affected properties for weed abatement in 2024 (Attachment B) following the public hearing, and direct weed abatement activities to commence at those properties in accordance with Resolution 10135. EXECUTIVE SUMMARY The City of Palo Alto contracts with the Santa Clara County Department of Agriculture and Environmental Management to remove and destroy weeds, as defined in Palo Alto Municipal Code Chapter 8.08. This hearing allows all property owners affected and listed on the County’s 2024 Weed Abatement Program Commencement Report (Attachment B) to be heard and have their objections and comments considered by the Council before the Council finalizes the list of properties ordered to abate weed nuisances in the City in 2024, under Resolution 10135. An overview of the program and annual calendar for the steps involving City Council action is provided in Attachment C. Item 13 Item 13 Staff Report        Item 13: Staff Report Pg. 1  Packet Pg. 238 of 318  BACKGROUND ANALYSIS FISCAL/RESOURCE IMPACT STAKEHOLDER ENGAGEMENT Item 13 Item 13 Staff Report        Item 13: Staff Report Pg. 2  Packet Pg. 239 of 318  ENVIRONMENTAL REVIEW ATTACHMENTS 2024 Palo Alto Weed Abatement Program Commencement Report Weed Abatement Timeline and Summary APPROVED BY: Item 13 Item 13 Staff Report        Item 13: Staff Report Pg. 3  Packet Pg. 240 of 318  1 300_20231120_ab Resolution No. 10135 Resolution of Intention of the Council of the City of Palo Alto Declaring Weeds to be a Nuisance and Setting February 26, 2024 for a Public Hearing for Objections to Proposed Weed Abatement R E C I T A L S A.Weeds, as defined in Section 8.08.010(b) of the Palo Alto Municipal Code, are anticipated to develop during calendar year 2024 upon streets, alleys, sidewalks, and parcels of private property within the City of Palo Alto sufficient to constitute a public nuisance as a fire menace when dry or are otherwise combustible, or otherwise to constitute a menace to the public health as noxious or dangerous. NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows: SECTION 1. Weeds, as defined in Section 8.08.010(b) of the Palo Alto Municipal Code, which are anticipated to develop during calendar year 2024 upon streets, alleys, sidewalks, and parcels of private property within the City of Palo Alto, are hereby found and determined to constitute a public nuisance. Such nuisance is anticipated to exist upon some of the streets, alleys, sidewalks, and parcels of private property within the City, which are shown, described, and delineated on the several maps of the properties in said City which are recorded in the Office of the County Recorder of the County of Santa Clara, reference in each instance for the description of any particular street, alley, or parcel of private property being hereby made to the several maps aforesaid, and, in the event of there being several subdivision maps on which the same lots are shown, reference is hereby made to the latest subdivision map. SECTION 2. THEREFORE, IT IS ORDERED that the said public nuisance be abated in the manner provided by Chapter 8.08 of the Palo Alto Municipal Code: i.IT IS FURTHER ORDERED that a public hearing shall be held on the 26th day of February, 2024, at the hour of 5 pm, or as soon thereafter as the matter may be heard, at the Council Chambers of the Civic Center of said City, at which the Council shall hear objections to the proposed weed abatement of such weeds and give any objections due consideration; ii.IT IS FURTHER ORDERED that the Fire Chief of the City of Palo Alto is directed to give notice of the public hearing in the time, manner and form provided in Chapter 8.08 of the Palo Alto Municipal Code. // // DocuSign Envelope ID: 082EEBF0-1FDB-42A9-BEB5-CCB8DE7ADBBF Item 13 Attachment A - Resolution 10135        Item 13: Staff Report Pg. 4  Packet Pg. 241 of 318  2 300_20231120_ab SECTION 3. Unless the nuisance is abated without delay by the destruction and removal of such weeds, the work of abating such nuisance will be done by the County of Santa Clara Department of Agriculture and Resource Management Office on behalf of the City of Palo Alto, and the expenses thereof assessed upon the lots and lands from which, and/or in the front and rear of which, such weeds shall have been destroyed and removed. SECTION 4. The City Council of Palo Alto adopts the determination of Santa Clara County, as the lead agency, that the Weed Abatement Program is categorically exempt from the provisions of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15308. INTRODUCED AND PASSED: December 4, 2023 AYES: BURT, KOU, LAUING, LYTHCOTT-HAIMS, STONE, TANAKA, VEENKER NOES: ABSENT: ABSTENTIONS: ATTEST: __________________________ _____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: __________________________ _____________________________ Assistant City Attorney City Manager _____________________________ Fire Chief _____________________________ Director of Administrative Services DocuSign Envelope ID: 082EEBF0-1FDB-42A9-BEB5-CCB8DE7ADBBF Item 13 Attachment A - Resolution 10135        Item 13: Staff Report Pg. 5  Packet Pg. 242 of 318  Certificate Of Completion Envelope Id: 082EEBF01FDB42A9BEB5CCB8DE7ADBBF Status: Completed Subject: DocuSign: Resolution 10135 - Weed Abatement Source Envelope: Document Pages: 2 Signatures: 6 Envelope Originator: Certificate Pages: 2 Initials: 0 Vinhloc Nguyen AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 250 Hamilton Ave Palo Alto , CA 94301 Vinhloc.Nguyen@CityofPaloAlto.org IP Address: 199.33.32.254 Record Tracking Status: Original 12/5/2023 4:45:05 PM Holder: Vinhloc Nguyen Vinhloc.Nguyen@CityofPaloAlto.org Location: DocuSign Security Appliance Status: Connected Pool: StateLocal Storage Appliance Status: Connected Pool: City of Palo Alto Location: DocuSign Signer Events Signature Timestamp Aylin Bilir Aylin.Bilir@CityofPaloAlto.org Assistant City Attorney Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 73.202.206.61 Sent: 12/5/2023 4:47:34 PM Viewed: 12/5/2023 4:51:45 PM Signed: 12/5/2023 4:52:31 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Kiely Nose Kiely.Nose@CityofPaloAlto.org Assistant City Manager/CFO City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Uploaded Signature Image Using IP Address: 199.33.32.254 Sent: 12/5/2023 4:52:32 PM Viewed: 12/7/2023 1:54:44 PM Signed: 12/7/2023 1:56:16 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Geo Blackshire Geoffrey.Blackshire@CityofPaloAlto.org Fire Chief Fire Services Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 199.33.32.254 Sent: 12/7/2023 1:56:17 PM Viewed: 12/7/2023 3:55:34 PM Signed: 12/7/2023 3:55:43 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Ed Shikada Ed.Shikada@CityofPaloAlto.org Ed Shikada City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 199.33.32.254 Sent: 12/7/2023 3:55:45 PM Viewed: 12/11/2023 10:52:34 AM Signed: 12/11/2023 10:52:42 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Item 13 Attachment A - Resolution 10135        Item 13: Staff Report Pg. 6  Packet Pg. 243 of 318  Signer Events Signature Timestamp Lydia Kou Lydia.kou@cityofpaloalto.org Council Member Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 24.130.158.24 Sent: 12/11/2023 10:52:44 AM Viewed: 12/11/2023 11:06:45 AM Signed: 12/11/2023 11:07:06 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Mahealani Ah Yun Mahealani.AhYun@CityofPaloAlto.org Interim City Clerk Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 199.33.32.254 Sent: 12/11/2023 11:07:08 AM Viewed: 12/12/2023 3:16:41 PM Signed: 12/12/2023 3:16:47 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 12/5/2023 4:47:34 PM Certified Delivered Security Checked 12/12/2023 3:16:41 PM Signing Complete Security Checked 12/12/2023 3:16:47 PM Completed Security Checked 12/12/2023 3:16:47 PM Payment Events Status Timestamps Item 13 Attachment A - Resolution 10135        Item 13: Staff Report Pg. 7  Packet Pg. 244 of 318  Situs APN CITY/STATE 2024 WEED ABATEMENT PROGRAM COMMENCEMENT REPORT CITY OF PALO ALTO TRA Exhibit A MIAO, NINA YANTI 931 CLARA DR PALO ALTO CA 94303-4002 06-0011605EDGEWOODDR003-12-0021 FIROUZDOR, VAHID AND NEJATI , 30 MELROSE CT HILLSBOROUGH CA 94010 6001136LOISLN003-38-0442 XIA, FAN AND ZHOU , YUAN 170 IRIS WAY PALO ALTO CA 94303-3036 6001170IRISWY003-41-0083 DENG, JINGJING AND JIANG , LIJUN 20653 CHERYL DR CUPERTINO CA 95014 6001782GREERRD003-41-0654 HALEY, PHILIP H TRUSTEE & ET AL 506 EISENHOWER ST DAVIS CA 95616 60011938CHANNINGAV003-42-0395 KOTHARY, NISHITA N AND SHAH , 1071 EMBARCADERO RD PALO ALTO CA 94303-3149 60011071EMBARCADERRD003-42-0556 HARA, MICHAEL W TRUSTEE & ET AL 88 SHEARER DR ATHERTON CA 94027 60011211FULTONST003-43-0397 ZADIK, YAIR AND LINDA 2385 ST FRANCIS DR PALO ALTO CA 94303-3136 60012385ST FRANCIS DR 003-48-0218 KELLER, JEFFREY R 2075 LOUIS RD PALO ALTO CA 94303-3452 60012075LOUISRD003-50-0219 ZHANG, SONGQING TRUSTEE & ET 179 WALTER HAYS DR PALO ALTO CA 94303-2924 6001946EL CAJON WY 003-52-05710 CHOI, BEN CHUNG-MING TRUSTEE & 268 CASTRO ST MOUNTAIN VIEW CA 94041-1204 6001864EMBARCADERRD003-56-00211 AGRAWAL, PARAG AND AGARWALA , 1725 NEWELL RD PALO ALTO CA 94303-2951 6001742SOUTHAMPTORD003-59-04112 LIVERIGHT, MICHAEL 260 BYRON ST PALO ALTO CA 94301-1307 6001260BYRONST120-02-03013 L S & CO PARTNERSHIP 555 BYRON ST UNIT 105 PALO ALTO CA 94301-1303 6001655EMBARCADERRD120-08-02314 KODA, ROSS K TRUSTEE P O BOX 156 SOUTH DOS PALOS CA 93665 6001733RAMONAST120-27-06315 L S & CO. 555 BYRON ST UNIT 105 PALO ALTO CA 94301 60012220BRYANTST124-14-02416 YURCHENCO, JAMES R 4102 SUTHERLAND DR PALO ALTO CA 94303-4730 60124102SUTHERLANDDR127-16-00517 CHAN, ALLAN FUKWAH AND LAM , 3951 SUTHERLAND DR PALO ALTO CA 94303-4726 60123951SUTHERLANDDR127-17-01418 LUU, JANE AND NG , DAVID M 3640 LUPINE AVE PALO ALTO CA 94303-4431 60013640LUPINEAV127-21-14019 KATO, TAKASHI AND AYANO 3189 LOUIS RD PALO ALTO CA 94303-3955 60013189LOUISRD127-24-03120 E & R INV PROPERTIES LLC ET AL PO BOX 500 BURLINGAME CA 94011 6001MORENOAVE127-33-06421 TANPHAICHITR, SAKSIRI M AND 464 COLORADO AVE PALO ALTO CA 94306-2414 6001464COLORADOAV132-08-11522 RAMCHANDRAN, ASISH AND 2657 KIPLING ST PALO ALTO CA 94306 6001454COLORADOAV132-08-11823 CHOU, LYNN H L PO BOX 60416 PALO ALTO CA 94306 60012689BRYANTST132-13-05524 Page 1Santa Clara County Weed Abatement Program24 records of 107 Item 13 Attachment B - 2024 Palo Alto Weed Abatement Program Commencement Report        Item 13: Staff Report Pg. 8  Packet Pg. 245 of 318  Situs APN CITY/STATE 2024 WEED ABATEMENT PROGRAM COMMENCEMENT REPORT CITY OF PALO ALTO TRA Exhibit A PAO, JOY J AND KE , SHIAN-REN 67 ORCHARD HILLS ST ATHERTON CA 94027 60013166KIPLINGST132-15-00225 ZHOU, ZHENG TRUSTEE 354 EL VERANO AVE PALO ALTO CA 94306-2952 6001354EL VERANO AV 132-16-08826 VALENTINE, MARY E 3120 COWPER ST PALO ALTO CA 94306-3001 60013120COWPERST132-20-15527 MIZOTE, HARUMI TRUSTEE 339 EL VERANO AVE PALO ALTO CA 94306-2940 6001339EL VERANO AV 132-21-02228 ZHANG, QIANLI AND QIU , YUNFENG 309 EL VERANO AVE PALO ALTO CA 94306-2940 6001309EL VERANO AV 132-21-02329 CONLIN, CHARLENE M TRUSTEE 25210 JAKE ST VENETA OR 97487 60013271BRYANTST132-21-02730 DARDEN, RUTHIE L TRUSTEE 3535 BRYANT ST PALO ALTO CA 94306-4263 60013535BRYANTST132-22-03431 CHANG, PEIPEI AND YANG , CALVIN 3503 BRYANT ST PALO ALTO CA 94306-4263 60013503BRYANTST132-22-03832 BEESON, DONALD H TRUSTEE PO BOX 60458 PALO ALTO CA 94306 60013358BRYANTST132-22-07033 3502 BRYANT LLC 257 CASTRO ST UNIT 224 MOUNTAIN VIEW CA 94041 60013502BRYANTST132-22-09134 TANG, DEXTER CHIHUNG TRUSTEE & 3533 RAMONA ST PALO ALTO CA 94306-3549 60013533RAMONAST132-22-09735 KAPOSHILIN, NICHOLAS TRUSTEE 936 N CALIFORNIA AVE PALO ALTO CA 94303-3405 60013541BRYANTST132-23-03336 LEUNG, JOHN KA YU AND JOANNA PO BOX 5358 SAN MATEO CA 94402-0358 600184ROOSEVELTCR132-23-05537 LIU, JENKUEI TRUSTEE & ET AL 4039 SCRIPPS AVE PALO ALTO CA 94306-4535 600176ROOSEVELTCR132-23-05938 MANE, MANOJ BAJIRAO AND 9 ROMAN EAGLE CT PLEASANTON CA 94566 6001179EL DORADO AV 132-25-02139 HSU, YEN-FEN TRUSTEE 2876 EMERSON ST PALO ALTO CA 94306-2350 60012876EMERSONST132-26-00640 NARAYANA, SHARATH KESHAVA AND2886 EMERSON ST PALO ALTO CA 94306-2350 60012886EMERSONST132-26-00741 QI, FENG AND CHEN , CHENG-NA 11 ROOSEVELT CIR PALO ALTO CA 94306-4217 600111ROOSEVELTCL132-29-01442 LYONS, CHARLES P TRUSTEE & ET AL 34 ROOSEVELT CIR PALO ALTO CA 94306-4216 600134ROOSEVELTCL132-29-06143 BERNSTEIN, AMIR D TRUSTEE 18 ROOSEVELT CIR PALO ALTO CA 94306 600118ROOSEVELTCL132-29-06944 AXELROD, HERBERT AND FUMIKO 220 HARTFORD AVE HUNTINGTON BEACH CA 92648-4741 60013780WRIGHTPL132-30-01745 CHENG, JING 4521 CAMPUS DR UNIT 363 IRVINE CA 92612 60013830CARLSONCR132-30-05846 PACIFIC BELL TELEPHONE COMPANY 600 E GREEN ST RM 300 PASADENA CA 91101 60013350BIRCHST132-33-06047 YANG, SHIH-WEI AND LIN , LIN 220 MATADERO AVE PALO ALTO CA 94306-2831 6001220MATADEROAV132-34-02548 Page 2Santa Clara County Weed Abatement Program48 records of 107 Item 13 Attachment B - 2024 Palo Alto Weed Abatement Program Commencement Report        Item 13: Staff Report Pg. 9  Packet Pg. 246 of 318  Situs APN CITY/STATE 2024 WEED ABATEMENT PROGRAM COMMENCEMENT REPORT CITY OF PALO ALTO TRA Exhibit A BASLER, JOSHUA R 3675 PARK BLVD PALO ALTO CA 94306-2853 60013675PARKBL132-34-04549 PAN, NANCY AND LEE , BENSON 3605 PARK BLVD PALO ALTO CA 94306-2853 60013605PARKBL132-34-05050 MAHAL, JASWINDER 180 PARK SHARON DR SAN JOSE CA 95136-2535 60013561PARKBL132-34-05251 CHASE WILTON LLC 3024 ROSS RD PALO ALTO CA 94303-4102 6001210WILTONAV132-35-01252 SONG, ZHIQIANG AND CHEN , 451 WILTON AVE PALO ALTO CA 94306-2859 6001451WILTONAV132-35-02553 ATASHBAND, BAHRAM 443 WILTON AVE PALO ALTO CA 94306-2859 6001443WILTONAV132-35-02754 TONG, PETER AND PAO , CHUNG 18444 FOREST CROSSING CT OLNEY MD 20832 6001365WILTONAV132-35-03355 GODSHALL, KELVIN V ET AL 215 WILTON AVE PALO ALTO CA 94306-2855 6001215WILTONAV132-35-04256 WHPV ALTA LOCALE LLC 530 EMERSON ST STE 150 PALO ALTO CA 94301 60012755EL CAMINO 132-36-08457 WILLIGER, EDWARD M P O BOX 20089 STANFORD CA 94309-0089 6001421FERNANDOAV132-39-03758 BROWN, JONATHAN S AND MIRIAM 415 FERNANDO AVE PALO ALTO CA 94306-2820 6001415FERNANDOAV132-39-03859 MAHANY, GARY W AND KEMP , 389 MATADERO AVE PALO ALTO CA 94306-2833 6001389MATADEROAV132-40-05360 ZHU, LI AND WAN , FANNY TRUSTEE 33345 7TH ST UNION CITY CA 94587 60014032PARKBL132-43-02561 DING, ZHIMIN AND ZHU , XINYI 3130 RAMONA ST PALO ALTO CA 94306-2922 60013130RAMONAST132-48-03362 BAUMANN, JOHN R TRUSTEE 613 STANFORD AVE PALO ALTO CA 94306-1412 6001613STANFORDAV137-01-05963 LIANG, KE 33206 FALCON DR FREMONT CA 94555 60012123YALEST137-01-13464 CULPEPPER, BENJAMIN J 335 PANORAMIC WAY BERKELEY CA 94704 60012321WELLESLEYST137-02-02465 1080CAPA LLC 3028 SCOTT BLVD UNIT C SANTA CLARA CA 95054 60011082COOLEGEAV137-03-03666 MENDELOWITZ, LOUIS I 2153 OBERLIN ST PALO ALTO CA 94306-1318 60012153OBERLINST137-03-03767 STANFORD JEWISH CENTER INC 1289 COLLEGE AVE PALO ALTO CA 94306-1345 60012017OBERLINST137-03-04768 BUSSEY, JASON M AND SACHIKO 2276 HARVARD ST PALO ALTO CA 94306-1351 60012276HARVARDST137-05-01669 EDELMAN, ANDREA TRUSTEE 2195 COLUMBIA ST PALO ALTO CA 94306-1233 60012195COLUMBIAST137-06-03670 KSS INVESTMENT LLC 1380 MIRAVALLE AVE LOS ALTOS CA 94024-5744 60223708EL CAMINO 137-11-07871 MEHTA, BIJAL AND PALLAVI 3793 LA DONNA AVE PALO ALTO CA 94306-3151 60593793LA DONNA AV 137-12-01672 Page 3Santa Clara County Weed Abatement Program72 records of 107 Item 13 Attachment B - 2024 Palo Alto Weed Abatement Program Commencement Report        Item 13: Staff Report Pg. 10  Packet Pg. 247 of 318  Situs APN CITY/STATE 2024 WEED ABATEMENT PROGRAM COMMENCEMENT REPORT CITY OF PALO ALTO TRA Exhibit A ASHWORTH, DARREN M AND IMANE 721 BARRON AVE PALO ALTO CA 94306 6059721BARRONAV137-13-04273 BLOOMQUIST, LYNDA L TRUSTEE 788 LOS ROBLES AV PALO ALTO CA 94306-3159 06-059788LOS ROBLES AV 137-13-11274 JUAN, CHUNG-CHIUNG AND SU 6 ATHERTON OAKS LN ATHERTON CA 94027 06-0224146EL CAMINO 137-24-03475 LELAND STANFORD JR UNIV THE BD 26 N EUCLID AVE PASADENA CA 91101 60553460HILLVIEWRD142-16-05976 LELAND STANFORD JR UNIV BD 300 PASTEUR DR ALWAY STANFORD CA 94305 60551050ARASTRADERRD142-16-06077 LELAND STANFORD JR UNIV BOARD 150 PORTOLA RD PORTOLA VALLEY CA 94025 06-0553495DEER CREEK RD 142-16-06278 LELAND STANFORD JR UNIV THE BD 415 BROADWAY ST 3RD FLR REDWOOD CITY CA 94063 6055DEER CREEK RD 142-16-06479 LELAND STANFORD JR UNIVERSITY 5301 STEVENS CREEK BLVD SANTA CLARA CA 95051-7201 06-0553500DEER CREEKS RD 142-16-06680 SHIU, BOON W AND CHOI , KEEHYUN 4208 RUTHELMA AVE PALO ALTO CA 94306-4109 60014208RUTHELMAAV148-02-00281 FERREIRA, KAVITHA AND JOAO 4206 DARLINGTON CT PALO ALTO CA 94306-4129 60014206DARLINGTONCT148-03-03782 LIU, LEI 4212 DARLINGTON CT PALO ALTO CA 94306-4129 60014212DARLINGTONCT148-03-03883 WANG, YOUXIANG AND LI , ZHENGQI 4236 DARLINGTON CT PALO ALTO CA 94306-4129 60014236DARLINGTONCT148-03-04484 BORDIA, ANUPAM AND SURBHI 4201 PARK BLVD PALO ALTO CA 94306-4144 60014201PARKBL148-03-06085 KARUPASAMY, KARTHIKEYAN 444 DEL MEDIO AVE MOUNTAIN VIEW CA 94040-1161 60574338SILVIAAV148-12-01386 JIANG, WEI AND HAN , QIUXIA 4346 SILVA AVE PALO ALTO CA 94306-4421 60574346SILVAAV148-12-01487 BROWN, THOMAS C AND WANG , 4350 SILVA CT PALO ALTO CA 94306-4422 60574350SILVACT148-12-01688 YIN, JUN AND DUANMU , LAN 4388 SILVA CT PALO ALTO CA 94306-4422 60574388SILVACT148-12-02889 BONTHU, ANAND TRUSTEE & ET AL 633 ARASTRADERO RD PALO ALTO CA 94306-3838 6022633ARASTRADERRD167-06-01690 NEW ATLANTIS LLC 639 ARASTRADERO RD PALO ALTO CA 94306-3838 6022639ARASTRADERRD167-06-06391 BACHRACH, SYLVIA RASHMI 12 STAR WAY MOUNTAIN VIEW CA 94040 60014179OAK HILL AV 175-01-02592 BACHRACH, SYLVIA R TRUSTEE 12 STARR WAY MOUNTAIN VIEW CA 94040 60014169OAK HILL AV 175-01-02693 JALILIAN, MOHAMMAD 849 MESA AVE PALO ALTO CA 94306-3710 6001849MESAAV175-01-03794 WEAKLAND, ALAN TRUSTEE & ET 515 FLOWER ST S FLOOR 25 LOS ANGELES CA 90071 06-0014243MANUELASCT175-02-05395 SMITHWICK ALTON D AND URSULA L PO BOX 60065 PALO ALTO CA 94306 60204103OLD TRACE RD 175-20-07896 Page 4Santa Clara County Weed Abatement Program96 records of 107 Item 13 Attachment B - 2024 Palo Alto Weed Abatement Program Commencement Report        Item 13: Staff Report Pg. 11  Packet Pg. 248 of 318  Situs APN CITY/STATE 2024 WEED ABATEMENT PROGRAM COMMENCEMENT REPORT CITY OF PALO ALTO TRA Exhibit A JOSHI, VIVEK TRUSTEE & ET AL 890 MOCKINGBIRD LN PALO ALTO CA 94306-3719 6020890MOCKINGBIRDLN175-20-08297 WATERS, CHRISTOPHER J TRUSTEE & 609 ARBOLEDA DR LOS ALTOS CA 94024 60204186OLD ADOBE RD 175-20-09298 HAO, HSIEH T AND MING C TRUSTEE 4150 OLD ADOBE RD PALO ALTO CA 94306-3726 60204150OLD ADOBE RD 175-20-10599 VILKIN, PETER D TRUSTEE 3790 EL CAMINO REAL UNIT PALO ALTO CA 94306 60204155OLD ADOBE RD 175-20-110100 PALO ALTO HILLS GOLF AND 3000 ALEXIS DR PALO ALTO CA 94304-1303 60393000ALEXISDR182-35-035101 VON CLEMM, PETER F AND JENNIFER 3130 ALEXIS DR PALO ALTO CA 94304-1305 60393130ALEXISDR182-43-024102 JACOBSEN, RUTH E TRUSTEE 966 LAUREL GLEN DR PALO ALTO CA 94304-1322 6039966LAUREL GLEN DR 182-43-038103 BOGERTY, SHARON D 951 LAUREL GLEN DR PALO ALTO CA 94304-1323 6039951LAUREL GLEN DR 182-49-004104 YEH KNOLL HOLDING INC A ICE HOUSE ST CENTRAL HONG KO NG 6039930LAUREL GLEN DR 182-54-006105 SHETH, BEERUD TRUSTEE & ET AL 931 LAUREL GLEN DR PALO ALTO CA 94304-1323 6039931LAUREL GLEN DR 182-54-012106 LAUREL GLEN LLC 4 VENTURE UNIT 390 IRVINE CA 92618 6039LAUREL GLEN DR 182-54-013107 Page 5Santa Clara County Weed Abatement Program107 records of 107 Item 13 Attachment B - 2024 Palo Alto Weed Abatement Program Commencement Report        Item 13: Staff Report Pg. 12  Packet Pg. 249 of 318  Attachment C City of Palo Alto Weed Abatement The Santa Clara County Weed Abatement Program th for CPA parcels. Item 13 Attachment C - Weed Abatement Timeline and Summary        Item 13: Staff Report Pg. 13  Packet Pg. 250 of 318  City Council Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: Planning and Development Services Meeting Date: February 26, 2024 Report #:2402-2644 TITLE Adoption of a Resolution Suspending Enforcement of Municipal Code Sections 16.14.090, 16.14.110 and 16.14.300 Requiring All-electric Construction and Direction to Staff to Commence Work on Local Amendments to the California Energy Code Establishing a One Margin Standard. CEQA Status – Not a Project. RECOMMENDATION Staff recommends that Council: 1. Consider adopting a Resolution (Attachment A) suspending enforcement of Municipal Code sections 16.14.090, 16.14.110 and 16.14.300, which require new residential and non-residential buildings to be all electric, in light of the decision of the U.S. Court of Appeals for the Ninth Circuit in California Restaurant Association v. City of Berkeley; and, 2. Direct staff to return to Council with amendments to the California Energy Code as codified in Title 16 of the Palo Alto Municipal Code Building Regulations establishing a “One Margin” standard, which would allow for installation of natural gas plumbing while imposing more stringent energy efficiency and all-electric readiness requirements to all new buildings, which incentivizes the additional efficiency and lower emissions of all- electric equipment using clean electricity. EXECUTIVE SUMMARY In the last five years, more than seventy U.S. cities and states have adopted regulations requiring or strongly incentivizing new building construction to be all electric. The first of these laws was passed in August 2019, in the City of Berkeley. In response to a court challenge the Ninth Circuit Court of Appeals found that Berkeley’s gas infrastructure ban is invalid because it is preempted by the federal Energy Policy and Conservation Act (EPCA). That decision is the final opinion of the Item 14 Item 14 Staff Report        Item 14: Staff Report Pg. 1  Packet Pg. 251 of 318  Ninth Circuit1 and applies throughout the Ninth Circuit’s jurisdictional area, which includes California and many other western states. Moreover, the Ninth Circuit found that EPCA preemption applies to state and local building codes. In support of its 80-by-30 and carbon neutrality goals, in November 2022 Palo Alto adopted a set of policies requiring that new construction and substantial remodels utilize all-electric design, effective January 2023.2 In light of the Ninth Circuit decision, staff proposes that Council consider two parallel paths forward. First, staff recommends that Council consider a temporary moratorium on enforcement of Palo Alto’s current all-electric requirement. For Council’s consideration, staff has prepared a Resolution (Attachment A) establishing a moratorium on enforcement of Municipal Code sections 16.14.090, 16.14.110, and 16.14.300 effective on adoption through December 31, 2024, or until further Council action, likely on adoption of an alternative electrification program. If adopted by Council, the Resolution would apply to pending and future development applications, including retrofits to add gas to already-constructed buildings, and to requests to modify previously-issued permits. Second, staff recommends Council direction to pursue a replacement Reach Code. For a replacement Reach Code, staff is aware of various options being considered by other agencies and by environmental advocacy groups. Of these alternatives the codes most likely to conform to the EPCA-preemption standards set by the court in its decision is the “One-Margin” code. Staff believes timeliness is critical in adopting this code. Work for the 2026-2028 code cycle begins next year in 2025, so any replacement code the City adopts in 2024 will only be in effect for just over a year. Rather than considering and researching a variety of policy options, staff recommends Council provide direction to proceed with development of a One Margin code. BACKGROUND Cities, Counties and States Adopt Building Electrification Requirements In the last five years, more than seventy U.S. cities and states have adopted regulations requiring or strongly incentivizing new building construction to be all electric. The first of these laws was passed in August 2019, in the City of Berkeley. Since then, dozens of cities and counties throughout the U.S., and several states, including Palo Alto, adopted all electric requirements for new buildings. The laws differ in a number of respects, including the type of regulation used (e.g. building code or health and safety regulation) and whether exceptions are made for certain uses 1 Cal. Rest. Assoc. v. City of Berkeley, 89 F.4th 1094 (9th Cir. 2024). The denial of en banc review includes a lengthy dissent from the denial, signed by 11 of the 50 active judges who participated in consideration of the petition for rehearing. While a dissent has no force of law, the dissenting judges explained in detail why they believe the original three-judge panel misinterpreted EPCA and reached the wrong result, in order “to urge any future court that interprets the Energy Policy and Conservation Act not to repeat the panel opinion’s mistakes.” Id. at p. 1119. 2 https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=82100 Item 14 Item 14 Staff Report        Item 14: Staff Report Pg. 2  Packet Pg. 252 of 318  or building types or can be requested based on feasibility or hardship. Lawsuits have been filed challenging many of these laws. Palo Alto’s All-Electric New Building Requirement In support of its 80-by-30 and carbon neutrality goals, in November 2022 Palo Alto adopted a set of policies requiring that new construction and substantial remodels utilize all-electric design, effective January 2023.3 There is no provision for exceptions. The City implemented this all- electric policy though local amendments to the California Green Building Code. These amendments can be found in: •PAMC Section 16.14.090 (for residential uses) – requiring “full electrification” for new buildings, substantial remodels, and new outdoor appliances/equipment such as grills, firepits, swimming pool heaters, and similar equipment. The Code prohibits plumbing for natural gas in addition to gas appliances. “Full electrification” is defined as “[a] building or parcel of land whose sole source of energy is electricity and contains no combustion equipment or plumbing for combustion equipment.” •PAMC Section 16.14.110 (for residential uses) – requiring that Heat Pump Water Heaters be utilized for all existing structures replacing or adding a water heater. •PAMC Section 16.14.300 (for non-residential uses) - requiring “full electrification” for new buildings, substantial remodels, and new outdoor appliances/equipment. The Code prohibits plumbing for natural gas in addition to gas appliances. “Full electrification” is defined as “[a] building or parcel of land whose sole source of energy is electricity and contains no combustion equipment or plumbing for combustion equipment.” Note that the base California Energy Code (CEC) already includes several measures that effectively require heat pump space conditioning and water heating in Palo Alto’s climate zone. Heat pumps are required for both space heating and water heating in new single-family homes, and for space heating only in new multifamily residences and most commercial uses. While the base CEC allows a developer to show that an alternative approach is just as energy-efficient as heat pump space and water hearing, the vast majority of developers use the pre-approved path. The City’s local codes go further than the base California Energy Code by: (1) requiring electrification without allowing a theoretical alternative, (2) requiring electric appliances for cooking and accessory uses in new single-family homes, (3) requiring heat pump water heaters for new multifamily and commercial projects; and (4) requiring heat pumps when replacing a water heater. 3 https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=82100 Item 14 Item 14 Staff Report        Item 14: Staff Report Pg. 3  Packet Pg. 253 of 318  Legal Challenges to Local and State Building Electrification Laws In adopting its all-electric requirement, Berkeley invoked its general police power to amend its Health and Safety Code to prohibit gas piping in new building construction.4 In November 2019, the California Restaurant Association (“CRA”) sued Berkeley, alleging, among other things, that Berkeley’s gas infrastructure ban is invalid because it is preempted by the federal Energy Policy and Conservation Act (EPCA). CRA is an association of restaurant owners and chefs, purportedly including members that seek to open or relocate a restaurant in a new building in Berkeley but for the ban on natural gas.5 CRA has publicly stated that it believes other cities’ regulations would be similarly preempted by EPCA but sued Berkeley because it was the first city to adopt a local gas ban for new construction. The federal trial court dismissed the suit, holding that EPCA preemption is limited to ordinances that directly regulate covered appliances.6 CRA appealed to the Ninth Circuit. The U.S. Department of Justice and Department of Energy weighed in, and amicus briefs were filed by numerous state Attorneys General, associations of cities and counties, academics and interest groups. On April 17, 2023, the Ninth Circuit issued a decision holding Berkeley’s regulation invalid because it is preempted by EPCA.7 Berkeley sought rehearing from a larger en banc panel of Ninth Circuit judges. On January 2, 2024, the Ninth Circuit denied the request for en banc rehearing, with 39 of the 50 non-recused active judges declining to review the matter. The decision of the original three-judge Ninth Circuit panel was reissued with minor amendments that do not change the substance or reasoning of the opinion. That decision is the final opinion of the Ninth Circuit.8 The Ninth Circuit decision applies throughout the Ninth Circuit’s jurisdictional area, which includes California and many other western states. 9 Berkeley has 90 days from the denial of rehearing en banc to ask the U.S. Supreme Court to hear the case (approximately April 1, 2024). If Berkeley requests review, the Supreme Court has discretion whether to accept the case, and there is no specific time for the Court’s response. In practice, the Court accepts only a small fraction of the review petitions it receives. Berkeley has not announced whether it will seek Supreme Court review. 4 Berkeley Municipal Code, Chapter 12.80. 5 Cal. Rest. Assoc. v. City of Berkeley, 547 F. Supp. 3d 878, 882 (N.D. Cal. 2021). 6 Ibid. 7 Cal. Rest. Assoc. v. City of Berkeley, 65 F.4th 1045 (9th Cir. 2023). 8 Cal. Rest. Assoc. v. City of Berkeley, 89 F.4th 1094 (9th Cir. 2024). The denial of en banc review includes a lengthy dissent from the denial, signed by 11 of the 50 active judges who participated in consideration of the petition for rehearing. While a dissent has no force of law, the dissenting judges explained in detail why they believe the original three-judge panel misinterpreted EPCA and reached the wrong result, in order “to urge any future court that interprets the Energy Policy and Conservation Act not to repeat the panel opinion’s mistakes.” Id. at p. 1119. 9 The Ninth Circuit includes Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, Washington, Guam and the Northern Mariana Islands. Item 14 Item 14 Staff Report        Item 14: Staff Report Pg. 4  Packet Pg. 254 of 318  Outside of the Ninth Circuit, legal challenges have been filed against electrification requirements in New York City and the State of New York. The Ninth Circuit’s decision in California Restaurant Association v. City of Berkeley CRA v. City of Berkeley is whether CRA has sufficient standing to challenge Berkeley’s regulation. To establish associational standing, and organization must demonstrate that (1) at least one of its members has suffered an injury in fact that is (a) concrete and particularized and (b) actual or imminent, rather than conjectural or hypothetical; (2) the injury is fairly traceable to the challenged action; and (3) it is likely, not merely speculative, that the injury will be redressed by a favorable decision.10 Because the case came to the Ninth Circuit on appeal from an order granting a motion to dismiss—a preliminary motion that requires the court to assume the truth of facts pled in a complaint—the Ninth Circuit held that CRA’s bare assertion that one or more of its members would open a restaurant in a new building Berkeley but for the all-electric ordinance was sufficient to establish standing, even without identifying an affected member, a specific location, or a plan or timeframe for opening a restaurant.11 12 As currently implemented, DOE enforces test procedures and minimum standards for more than 60 products covering residential, commercial and industrial, lighting, and plumbing applications. By its terms, EPCA implements a national energy policy and expressly preempts state and local regulations concerning the energy efficiency, energy use, and energy conservation standards for covered products.13 CRA v. City of Berkeley, the Ninth Circuit held that the EPCA preempts Berkeley’s ordinance because by banning gas piping in new construction Berkeley effectively rendered gas appliances useless even though gas service is available, thereby impermissibly regulating energy use by covered products. The court characterized Berkeley’s regulation as an attempt to circumvent 10 Cal. Rest. Assoc. v. City of Berkeley, 89 F.4th at p. 1099, citing Nat. Res. Def. Council v. EPA, 735 F.3d 873, 878 (9th Cir. 2013). 11 Id., p. 1100. 12 42 U.S.C. §§ 6291–6309. 13 EPCA includes the following definitions: “Energy efficiency” means “the ratio of the useful output of services from a consumer product to the energy use of such product…” 42 U.S. Code § 6291(5). “Energy use” means “the quantity of energy directly consumed by a consumer product at point of use...” 42 U.S. Code § 6291(4). And “energy conservation standard” is defined, among other things, as “a performance standard which prescribes a minimum level of energy efficiency or a maximum quantity of energy use.” 42 U.S. Code § 6291(6). Item 14 Item 14 Staff Report        Item 14: Staff Report Pg. 5  Packet Pg. 255 of 318  EPCA preemption by doing indirectly what Congress has said may not be done directly: “Berkeley can’t evade preemption by merely moving up one step in the energy chain and banning natural gas piping within those buildings. Otherwise, the ability to use covered products is ‘meaningless’ if consumers can’t access the natural gas available at the meter on the premises.”14 15, the Ninth Circuit found that EPCA preemption is not limited to facial regulations of consumer products but rather reaches regulations that “concern” covered products (i.e., banning delivery of natural gas to appliances “concerns” the energy use of covered products).16 The Ninth Circuit concluded that a regulation that imposes a total ban on natural gas is not exempt from the EPCA just because it lowers energy use to zero.17 18 The Circuit noted that there is “no doubt Berkeley’s ban, if adopted by States and localities throughout the country, would significantly burden the sale of covered products on a national basis.”19 20, the Ninth Circuit stated that finding EPCA preemption in this context does not necessarily require Berkeley to affirmatively make natural gas available everywhere. Rather, the Ninth Circuit stated that its decision is limited: the EPCA prevents Berkeley from banning gas piping from the point of delivery at the meter within new construction buildings. The Circuit stated that its holding does not address the question of whether Berkeley has any obligation to maintain or expand the availability of a utility’s delivery of gas to meters21, effectively leaving that question open for now. ANALYSIS 14 Cal. Rest. Assoc. v. City of Berkeley, 89 F.4th at p. 1107. 15 Cal. Rest. Assoc. v. City of Berkeley, 547 F. Supp. 3d 878, 891-892 (N.D. Cal. 2021). 16 Cal. Rest. Assoc. v. City of Berkeley, 89 F.4th at p. 1103-1105. 17 Id., p. 1102. 18 Id., p. 1101. 19 Id., p. 1104 (internal quotations omitted). 20 Cal. Rest. Assoc. v. City of Berkeley, 547 F. Supp. 3d 878, 891 (N.D. Cal. 2021). 21 Id., p. 1106. Item 14 Item 14 Staff Report        Item 14: Staff Report Pg. 6  Packet Pg. 256 of 318  reach code provisions—called One Margin—that staff, with Council direction, will bring forward as soon as possible. Second, staff seeks Council’s endorsement to pursue development of the One Margin program as the quickest way to implement strong incentives for new building electrification. Staff will continue to evaluate potential regulatory approaches for the Council to consider with the next cycle of Building Code regulations that are slated to come to Council in 2025, for 2026-2028. Moratorium on Enforcement of PAMC Sections 16.14.090, 16.14.110, and 16.14.300 CRA v. Berkeley, state and local government agencies within the western region covered by the Circuit that have regulations prohibiting the installation or use of gas have repealed their regulations, suspended enforcement, or initiated substantial changes to the regulations.22 Staff is not aware of a jurisdiction with a regulation similar to Palo Alto’s that is continuing active enforcement. Develop a One Margin Reach Code 22 This includes Washington state; the City of Eugene, Oregon; and the California Cities of Encinitas, Brisbane, San Luis Obispo, Sacramento, Santa Cruz, Menlo Park and San Jose. Item 14 Item 14 Staff Report        Item 14: Staff Report Pg. 7  Packet Pg. 257 of 318  mixed-fuel buildings but requires them to be highly energy efficient and electrification ready, i.e. constructed with the electric infrastructure (space in the electric panel and electric circuits) to accommodate future electric appliances. In practice, the California Energy Code is an “electric preferred” code, with mixed-fuel allowed but compliance being easier with all-electric equipment since it is difficult to comply with the California Energy Code without installing electric heat pump space and water heating systems. •High-performance approach with additional efficiency requirements for new mixed-fuel buildings only (All-Electric Preferred reach code) •High-performance approach with additional efficiency requirements for all new buildings (One Margin reach code) •Emissions limit approach with local air quality requirements for nitrous oxides (NOx) or other greenhouse gases CRA v. City of Berkeley is the “One-Margin” reach code. The decision specifically acknowledges an exception within EPCA that allows for reach codes, provided they satisfy seven requirements.23 The One- 23 42 USC 6297 (3)”… [A] regulation or other requirement contained in a State or local building code for new construction concerning the energy efficiency or energy use of such covered product is not superseded by this part if the code complies with all of the following requirements: (A) The code permits a builder to meet an energy consumption or conservation objective for a building by selecting items whose combined energy efficiencies meet the objective. (B) The code does not require that the covered product have an energy efficiency exceeding the applicable energy conservation standard established in or prescribed under section 6295 of this title, except that the required efficiency may exceed such standard up to the level required by a regulation of that State for which the Secretary has issued a rule granting a waiver under subsection (d). (C) The credit to the energy consumption or conservation objective allowed by the code for installing covered products having energy efficiencies exceeding such energy conservation standard established in or prescribed under section 6295 of this title or the efficiency level required in a State regulation referred to in subparagraph (B) is on a one-for-one equivalent energy use or equivalent cost basis. (D) If the code uses one or more baseline building designs against which all submitted building designs are to be evaluated and such baseline building designs contain a covered product subject to an energy conservation standard established in or prescribed under section 6295 of this title, the baseline building designs are based on Item 14 Item 14 Staff Report        Item 14: Staff Report Pg. 8  Packet Pg. 258 of 318  Margin reach code applies additional efficiency requirements to all new buildings, but takes into account energy use at the source, which favors the additional efficiency and lower emissions of all-electric equipment using clean electricity. It uses standard energy modeling practices to set its requirements rather than novel approaches like local air-quality standards. It does not discriminate between gas and electric appliances like an “Electric-preferred” code. the efficiency level for such covered product which meets but does not exceed such standard or the efficiency level required by a regulation of that State for which the Secretary has issued a rule granting a waiver under subsection (d). (E) If the code sets forth one or more optional combinations of items which meet the energy consumption or conservation objective, for every combination which includes a covered product the efficiency of which exceeds either standard or level referred to in subparagraph (D), there also shall be at least one combination which includes such covered product the efficiency of which does not exceed such standard or level by more than 5 percent, except that at least one combination shall include such covered product the efficiency of which meets but does not exceed such standard. (F) The energy consumption or conservation objective is specified in terms of an estimated total consumption of energy (which may be calculated from energy loss- or gain-based codes) utilizing an equivalent amount of energy (which may be specified in units of energy or its equivalent cost). (G) The estimated energy use of any covered product permitted or required in the code, or used in calculating the objective, is determined using the applicable test procedures prescribed under section 6293 of this title, except that the State may permit the estimated energy use calculation to be adjusted to reflect the conditions of the areas where the code is being applied if such adjustment is based on the use of the applicable test procedures prescribed under section 6293 of this title or other technically accurate documented procedure. Item 14 Item 14 Staff Report        Item 14: Staff Report Pg. 9  Packet Pg. 259 of 318  Thus, if the City were to pursue the One Margin reach code amendment, then time is of the essence. Because staff will begin it work on comprehensive building code updates for the 2026- 2028 code cycle early next year, any replacement code the City adopts in the interim will be in effect for approximately one year. Rather than considering and researching a variety of policy options, staff recommends Council provide direction to proceed with development of a One Margin code. Staff would aim for fall of this year for adoption if possible. Staff will continue to track other approaches by state or local agencies, and if they appear viable staff can present them as policy options as part of the work on the updates for the 2026-2028 code cycle. FISCAL/RESOURCE IMPACT STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Item 14 Item 14 Staff Report        Item 14: Staff Report Pg. 10  Packet Pg. 260 of 318  Attachment A NOT YET APPROVED Resolution No. _________ Resolution of the Council of the City of Palo Alto Establishing a Temporary Moratorium on Enforcement of Palo Alto Municipal Code Sections 16.14.090, 16.14.110 and 16.14.300 (Requiring Full Electrification for New and Substantially Remodeled Residential and Commercial Buildings) R E C I T A L S A. On November 14, 2022, the Palo Alto City Council adopted an ordinance amending Title 16 of the Palo Alto Municipal Code, Chapter 14, by adding Sections 16.14.090, 16.14.110 and 16.14.300 (the “Electrification Requirements”) to support progress towards the City’s 80-by-30 carbon reduction goal by promoting electrification of new residential and commercial construction and substantial remodels. B. The Electrification Requirements prohibit installation of combustion equipment or plumbing for combustion equipment in new residential and non-residential buildings, in substantial remodels of residential and non-residential buildings, and with respect to new outdoor appliances and equipment such as grills, firepits, swimming pool heaters, and similar equipment. The Electrification Requirements also require use of heat pump water heaters for all existing structures replacing or adding a water heater. The Electrification Requirements became effective January 1, 2023. C. In the case of California Restaurant Association v. City of Berkeley, 89 F.4th 1094 (9th Cir. 2024), the United States Court of Appeals for the Ninth Circuit held that the state and local governments may not prohibit installation of gas piping in new construction because such regulations are preempted by the Energy Policy and Conservation Act (EPCA), 42 U.S. Code sect. 6201 et. seq. D. The Palo Alto Council finds that suspending enforcement of the Electrification Requirements is appropriate at this time, pending potential further developments including, but not limited to, final resolution of California Restaurant Association v. City of Berkeley litigation or amendments to the EPCA and any rules promulgated thereunder. NOW, THEREFORE, the Council of the City of Palo Alto does hereby RESOLVE as follows: SECTION 1. Enforcement of Palo Alto Municipal Code Sections 16.14.090, 16.14.110 and 16.14.300 is suspended. This moratorium on enforcement is effective immediately on adoption of this Resolution and shall remain in place until repealed by Council or December 31, 2024, whichever is sooner. This moratorium on enforcement shall apply to all applications for building permits or other development project entitlements including, without limitation, currently- pending applications, new applications filed after adoption of this Resolution, requests for Item 14 Attachment A - Resolution Suspending Enforcement of Municipal Code sections 16.14.090, 16.14.110 and 16.14.300.        Item 14: Staff Report Pg. 11  Packet Pg. 261 of 318  Attachment A NOT YET APPROVED modification of pending applications, and applications for modification of previously-issued permits or entitlements. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: City Manager or Designee City Attorney Director of Planning and Development Services Item 14 Attachment A - Resolution Suspending Enforcement of Municipal Code sections 16.14.090, 16.14.110 and 16.14.300.        Item 14: Staff Report Pg. 12  Packet Pg. 262 of 318  City Council Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: City Manager Meeting Date: February 26, 2024 Report #:2402-2642 TITLE Policy and Services Committee Recommendations for Changes to the City Council Procedures and Protocols Handbook based on Prior City Council Referrals (Review of Censure Language). CEQA Status - Not a Project. RECOMMENDATION The Policy and Services Committee recommends City Council action on the Procedures and Protocols Handbook (Handbook) referral related to censure/enforcement that the City Council sent to Policy and Services in spring 2023. This is one of two remaining Handbook referrals from 2023. The final referral will come to the full City Council in March or April (related to discretionary expenditures). BACKGROUND The City Council discussed the City Council Procedures and Protocols Handbook on January 30 and March 20, 2023 and adopted the most recent version on April 24, 2023. At that time, the City Council referred some discussion topics to the Policy and Services Committee. The Committee has discussed these referrals and made recommendations on all but one of the referrals. The specific referrals from City Council were: 1. Procedures Section 1.1: Annual Organization of City Council 2. Procedures Section 5.1a(4): Video Participation for Public Comment 3. Procedures Section 8.2: Censure language was referred to committee for review 4. Protocols Section 2.2: Refrain from Lobbying Board and Commission Members 5. Protocols Section 2.8: The Role of Council Liaison to Boards or Commissions 6. Protocols Section 4: International Travel 7. Protocols Section 4.1: Miscellaneous Expenditures. Council referral for the committee to discuss the establishment of appropriate parameters for Council discretionary expenditures and whether to allocate $2,000 annually from the Council contingency fund for each Council member to decide its purpose. Item 15 Item 15 Staff Report        Item 15: Staff Report Pg. 1  Packet Pg. 263 of 318  The City Council began this discussion on December 18, 2023 and provided direction on February 5, 2024 on items 1, 2, 4, 5, and 6. Item 7 was discussed at Policy and Services Committee (P&S) on February 13, 2024 and will return to the Committee for further discussion in March 2024. Item 3, related to censure language is the remaining P&S recommendation and the focus of this report. And given that this is a new year, the City Council will also be reviewing the full Handbook again for consideration of new topics to amend. This discussion will occur in the coming months after the completion of the prior year referrals. ANALYSIS The specific recommendation from the Committee on the censure referral topic is in the Attachment A draft revised Handbook with a short summary below: Procedures Section 8.2: Censure language was referred to committee for review a.Attachment A draft Handbook includes Policy and Services Committee recommended censure language. The proposed censure language is on draft Handbook pages 35-39. This was a 2-1 vote at committee. FISCAL/RESOURCE IMPACT No known fiscal impact for this particular Handbook section on censure. ENVIRONMENTAL REVIEW City Council action on this item is not a project as defined by the California Environmental Quality Act (CEQA) because revisions to the City Council Procedures and Protocols is a continuing administrative or maintenance activity. CEQA Guidelines section 15378(b)(2). ATTACHMENTS Attachment A: Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023 APPROVED BY: Ed Shikada, City Manager Item 15 Item 15 Staff Report        Item 15: Staff Report Pg. 2  Packet Pg. 264 of 318  2 9 9 9 If you have any questions about this handbook, please feel free to contact the City Clerk by phone at (650) 329-2571 and e-mail at city.clerk@cityofpaloalto.org or the City Attorney by phone at (650) 329-2171 and e-mail at city.attorney@cityofpaloalto.org. CITY COUNCIL PROCEDURES AND PROTOCOLS HANDBOOK DRAFT HANDBOOK WITH POLICY AND SERVICES 2023 RECOMMENDATIONS FOR DISCUSSION Draft November 2023 Procedures and Protocols Approved 04/24/2023 with New Table of Contents (last updated May 2023) Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 3  Packet Pg. 265 of 318  2 9 9 9 TABLE OF CONTENTS Introduction...............................................................................................................3 PART I: CITY COUNCIL PROCEDURES ...........................................................................4 SECTION 1 – CITY COUNCIL ORGANIZATION AND STRUCTURE..................................................4 1.1 Annual Organization of City Council.............................................................................4 1.2 Council Committees......................................................................................................4 1.3 Respect the Work of the Council Committees..............................................................7 SECTION 2 - GENERAL PROCEDURES FOR CITY COUNCIL MEETINGS.........................................8 2.1 Meeting Schedules, Agendas and Supporting Materials ..............................................8 2.2 The Mayor and Vice Mayor Should Work with Staff to Plan the Council Meetings......9 2.3 Attendance Procedures................................................................................................9 2.4 Colleagues’ Memos....................................................................................................14 SECTION 3 - CITY COUNCIL MEETING ORDER OF THE AGENDA...............................................14 3.1 Call to Order...............................................................................................................15 3.2 Special Orders of the Day...........................................................................................15 3.3 Closed Sessions...........................................................................................................15 3.4 Agenda Changes, Additions, and Deletions................................................................17 3.5 General Public Comment (see Section 5 on Public Participation for more details about “General Public Comment”) ............................................................................17 3.6 Council Member Questions, Comments, and Announcements (including reports on Boards, Commissions, and Committees) ...................................................................17 3.7 Study Sessions............................................................................................................18 3.8 Consent Agenda .........................................................................................................18 3.9 City Manager’s Comments..........................................................................................20 3.10 Action Items...............................................................................................................20 3.11 Adjournment..............................................................................................................20 SECTION 4 - PROCEDURES AT CITY COUNCIL MEETINGS.........................................................21 4.1 Council Motion and Voting Processes throughout the Agenda (exist. Procedures 2.4 U and V)......................................................................................................................21 4.2 Motion Procedures.....................................................................................................21 4.3 Voting and Debate of Agenda Items...........................................................................25 4.4 Quasi-Judicial Matters................................................................................................27 SECTION 5 - HOW THE PUBLIC ENGAGES WITH THE CITY COUNCIL........................................29 5.1 Public Participation During City Council Meetings......................................................29 SECTION 6 - CITY COUNCIL QUESTIONS ON AGENDA-RELATED ITEMS....................................32 6.1 Submit Questions on Council Agenda Items Ahead of the Meeting...........................32 6.2 City Council emails for Agenda-Related Items Procedure...........................................32 SECTION 7 – COUNCIL VALUES AND ANNUAL COUNCIL PRIORITIES........................................33 SECTION 8 - PROCEDURES AND PROTOCOLS REVIEW AND ENFORCEMENT ...........................35 8.1 Commit to Annual Review of Important Procedural Issues........................................35 8.2 Enforcement...............................................................................................................35 PART II: CITY COUNCIL PROTOCOLS...........................................................................36 SECTION 1 – CITY COUNCIL CONDUCT.....................................................................................36 1.1 Positive Work Place Environment...............................................................................36 1.2 Comply with Law........................................................................................................36 1.3 City Council Core Responsibilities (exist. Protocol Sec. 1)...........................................36 Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 4  Packet Pg. 266 of 318  2 9 9 9 1.4 General Member Conduct..........................................................................................37 1.5 Decisions Based on Merit...........................................................................................38 1.6 Advocacy ....................................................................................................................38 1.7 Council Conduct with City Staff..................................................................................39 1.8 Use of Staff Time........................................................................................................40 SECTION 2 - CITY COUNCIL CONDUCT WITH PALO ALTO BOARDS AND COMMISSIONS..........41 2.1 If Attending a Board or Commission Meeting, Identify Your Comments as Personal Views or Opinions.......................................................................................................41 2.2 Refrain from Lobbying Board and Commission Members...........................................41 2.3 Remember that Boards and Commissions are Advisory to the Council as a Whole, not as Individual Council Members..................................................................................41 2.4 Concerns about an Individual Board or Commission Member Should be Pursued with Tact.............................................................................................................................41 2.5 Be Respectful of Diverse Opinions..............................................................................42 2.6 Keep Political Support Away from Public Forums.......................................................42 2.7 Maintain an Active Liaison Relationship......................................................................42 2.8 Role of Council Liaison to Board or Commission ........................................................42 SECTION 3 - STAFF CONDUCT WITH CITY COUNCIL.................................................................42 3.1 Respond to Council Questions as Fully and as Expeditiously as is Practical................42 3.2 Respect the Role of Council Members as Policy Makers for the City..........................42 3.3 Demonstrate Professionalism and Non-Partisanship in all Interactions with the Community and in Public Meetings...........................................................................42 3.4 It is Important for the Staff to Demonstrate Respect for the Council at all Times......43 SECTION 4 - CITY COUNCIL AND BOARDS AND COMMISSIONS POLICY FOR TRAVEL AND MISCELLANEOUS EXPENSE REIMBURSEMENT...................................................................43 4.1 Mayor and Vice Mayor Additional Compensation......................................................43 4.2 Miscellaneous Expenditures.......................................................................................43 4.3 Council and Boards and Commission Travel Policy.....................................................43 SECTION 5 - Confidentiality, Conflicts of Interest, Gifts And Favors........................................44 Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 5  Packet Pg. 267 of 318  3 City Council Protocols and Procedures Handbook Introduction The purpose of this City Council Procedures and Protocols Handbook is to review a set of rules through which the Palo Alto City Council conducts its business in a fair, equitable and effective manner. Adoption of the Handbook is requirement of the Palo Alto Municipal Code: Municipal Code 2.04.100 – Handbook of Procedural Rules The Council shall adopt by resolution a handbook of procedural rules governing any aspect of the conduct of meetings and hearings for the council and its standing committees, including but not limited to agenda requirements, the order of business, rules of order, rules of evidence, closed session procedures and rules for public participation in meetings. The handbook of procedural rules shall be deemed guidelines and failure to comply with any procedural rule shall not be the basis for challenge to or invalidation of any action of the council, nor shall they be construed to create any independent remedy or right of action of any kind. The handbook is organized in two parts: Part I: City Council Procedures This section explains the process through which work is done and basic rules for City Council meetings including public participation guidelines. Part II: City Council Protocols This section explains conduct guidance for the City Council. If a provision of this Handbook conflicts or is inconsistent with the Charter, the Municipal Code, or State or Federal law, the Charter, Code, or State or Federal law shall govern. Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 6  Packet Pg. 268 of 318  4 City Council Protocols and Procedures Handbook PART I: CITY COUNCIL PROCEDURES SECTION 1 – CITY COUNCIL ORGANIZATION AND STRUCTURE 1.1 Annual Organization of City Council The Palo Alto Charter, Article III, Section 8 directs Council to elect one of its members to serve as Mayor and one as Vice-Mayor, and sets forth their duties. Palo Alto Municipal Code Section 2.04.060 provides additional detail. Mayor and Vice-Mayor are elected at the first meeting in January each year. Nominations may be made by any Council member and do not require a second. 1.2 Council Committees (a) Standing Council Committees Policy It is the policy of the Council to use standing committees in open and public meetings to study City business in greater depth than what is possible in the time allotted for Council meetings. Purpose These rules are intended to enhance public participation and committee meetings so that the best possible decisions can be made for Palo Alto. General Requirements Council standing committees shall be subject to the following procedural rules: 1) Quorum A majority of the committee membership shall constitute a quorum. 2) Referrals Only the Council or City Manager shall make referrals to the standing committees. Referrals will generally be directed to only one of the standing committees. Items may be withdrawn from the committee and taken up for consideration by the Council at any Council meeting with the consent of a majority of the Council, and subject to any applicable noticing or agenda-posting requirements. 3) Attendance by Nonmembers As required by the Brown Act, Council members who are not on a committee may attend the committee meeting but only as an observer; they may not speak or otherwise participate in the committee meeting. If Council wishes to allow members who are not serving on the committee to speak, the meeting should be noticed as a meeting of the full Council, and all Council procedural requirements will apply. Commented [GC1]: Policy and Services Discussed this at the May 9, 2023 and City Council discussed on February 5, 2024 and provided next steps. Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 7  Packet Pg. 269 of 318  5 City Council Protocols and Procedures Handbook 4) Function of committees The purpose and intent of committee meetings is to expedite Council action by providing more thorough and detailed discussion and study of prospective or current Council agenda items with a full and complete airing of all sentiments and expressions of opinion on City problems by both the committee and the public. Actions of the committee shall be advisory recommendations only except as to matters delegated to the committee by Council. 5) Minutes and Report of Committee The City Clerk shall be responsible for the preparation and distribution to the Council of the minutes of standing committee meetings. The minutes for these meetings shall be action minutes which reflect the motions made during these meetings. The minutes of each committee meeting serve as the report to the Council and should be included, as appropriate, in subsequent relevant staff reports. 6) Agenda The presiding officer of each standing committee shall work with staff to prepare the agenda for committee meetings. Items should be scheduled as they are ready, taking into account the sequence of referral, the time required for staff research and analysis to support committee discussions, the time-sensitivity of items, and other factors as determined by the chair and City Manager. 7) Public Participation at Committees The presiding officer shall determine the time that each speaker is allotted during general public comment and public comment on agendized items. The chair will typically set individual speaker speaking time at 3 minutes per speaker. If extended public participation is desired the chair may provide for a longer period; if there are a large number of speakers or many agenda items, speaking time may be shortened. 8) New Standing Committees Council may establish new standing committees as needed. (b) Policy and Services Committee The Municipal Code states that the role of the Council Policy & Services Committee is to consider and make recommendations on matters referred to it by the Council relating to parliamentary and administrative procedures and policy matters pertaining to intergovernmental relations, personnel policies, planning and zoning, traffic and parking, public work, and community and human services. (§2.04.220). (c) Finance Committee The Municipal Code states that the role of the Council Finance Committee is to consider and make recommendations on matters referred to it by the Council relating to finance, budget, financial audits, capital planning and debt. (§2.04.210). Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 8  Packet Pg. 270 of 318  6 City Council Protocols and Procedures Handbook (d) Council Appointed Officers (CAO) Committee The CAO Committee meets on an as-needed schedule to address issues that Council has referred to the Committee related to Council's four direct appointees: the City Manager, City Attorney, City Clerk and City Auditor. For example, the committee may be tasked with duties related to performance evaluations, compensation, and the filling of vacancies. (e) City Schools Liaison Committee The City-Schools Liaison Committee is composed of two Council members and two members of the Board of Education of the Palo Alto Unified School District. The committee’s purpose is to share information, collaborate, and coordinate on issues related to Palo Alto’s school-aged children and youth. (f) Ad Hoc Committees Policy The Council may create Ad Hoc Committees on a limited basis where necessary to study City business in greater depth than what is possible in the time allotted for Council and Standing Committee meetings. Purpose These rules are intended to clarify the distinctions between Standing and Ad Hoc Committees and to set up guidelines for creation of Ad Hoc Committees. General Requirements Council Ad Hoc Committees shall be subject to the following procedural rules: 1) Definition of Ad Hoc Committee An Ad Hoc Committee is a temporary advisory committee composed solely of less than a quorum of members of the Council or any Council Standing Committee. The work of an Ad Hoc Committee has a limited or single purpose. An Ad Hoc committee is not intended to be perpetual but rather to be dissolved in a finite period time, once its specific task is completed. By contrast, a Standing Committee has continuing subject matter jurisdiction over a variety of related topics. 2) Brown Act The procedural requirements of the Brown Act apply to all committees that have either: (a) continuing subject matter jurisdiction over a matter or group of related matters; or (b) a regular meeting schedule set by Council action. All Standing Committees are Brown Act bodies. Ad hoc committees are generally not Brown Act bodies, provided that they are temporary bodies, formed for the purpose of addressing a limited or single purpose, include only members of Council, and do not have a regular meeting schedule set by Council action. When Council creates an Ad Hoc committee that is not a Brown Act body, Council may, at its discretion, direct that the committee follow Brown Act procedures. Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 9  Packet Pg. 271 of 318  7 City Council Protocols and Procedures Handbook 3) Creation and Appointment The Mayor or the City Council may create an Ad Hoc Committee and appoint three or fewer members of the Council to serve. In contrast, only the Council and not the Mayor alone can create a Standing Committee. The Mayor makes appointments to Standing and Ad Hoc Committees. The Mayor will publicly announce any Ad Hoc Committee created by her or him and its membership and stated purpose. The Clerk shall post this information on the Council website. The City Manager shall prepare a report to Council about the anticipated time commitment required for staff to assist the Ad Hoc Committee. 4) Duration Ad Hoc Committees are created for a finite period of time. If an Ad Hoc Committee does not complete its task by the end of the calendar year, it shall not continue unless reappointed by the new Mayor in the following year. 5) Members Ad Hoc Committees shall consist of less than a quorum of Council members only, and shall not include any other persons, including members of other legislative bodies. 6) Reporting Ad Hoc Committees shall report their recommendations to the Council in the timeframe directed by Council. Any Council Member may ask during ‘Council Member Questions, Comments And Announcements’ that an updated Ad Hoc Committee report be placed on an upcoming meeting agenda. 7) Termination of Ad Hoc Committee by Majority of Council A majority of the Council may vote to terminate any Ad Hoc Committee following placement of the issue on an agenda. 8) Conclusion A public announcement shall be made any time the Ad Hoc Committee has concluded its work and/or upon dissolution. 1.3 Respect the Work of the Council Committees Council should respect the work of Council committees, as their purpose is to provide focused, in- depth discussion of issues to help inform and expedite Council business. If a matter is taken forward to the full Council for approval after receiving a unanimous vote at committee, the item will be placed on the Consent Calendar, unless otherwise recommended by the committee, Mayor, City Attorney or City Manager. ** * Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 10  Packet Pg. 272 of 318  8 City Council Protocols and Procedures Handbook SECTION 2 - GENERAL PROCEDURES FOR CITY COUNCIL MEETINGS The purpose of these guidelines is to facilitate the orderly and efficient conduct of Council business. This purpose recognizes the value of establishing a community understanding of meeting procedures so that broad public participation is encouraged. This purpose also recognizes that Council members must have a common approach to the discussion and debate of City business so that meetings are both streamlined and thorough. These are guidelines, rather than rules. The Council intends that City staff and Council members will follow these guidelines. However, these guidelines should not be used in a way that leads to inefficiency, unfairness, or the promotion of form over substance. In addition to Council-adopted guidelines, State law establishes a variety of mandatory meeting rules that the City must follow in order to ensure open government and fair process, regardless of unusual situations and consequences. (See Cal. Govt Code section 54950.) 2.1 Meeting Schedules, Agendas and Supporting Materials (a) Meeting Schedules for Regular and Special Meetings The City Council generally conducts two different kinds of meetings: regular meetings and special meetings. The Municipal Code provides that regular City Council meetings are conducted at City Hall on the first three Monday nights of each month, except during the Council’s annual summer and winter recesses, at 5:30 p.m. The Council also schedules periodic special meetings, which are meetings on any day or time other than the regular meeting time. This may include meetings on the regularly-scheduled first three Mondays where the start time is 5 p.m. or earlier, or meetings on a fourth or fifth Monday, or meetings scheduled on any other day or time. The Mayor or Council may call a special meeting on a minimum of 24 hours’ notice. Special meetings need not be held at City Hall, as long as the alternate location is within the City. The Council makes every effort to provide notice well in advance of 24 hours, especially when the special meeting is for the purpose of conducting a Study Session. (c) Posting of Agendas Under the Brown Act, meeting agendas must be posted no later than 72-hours prior to regular meetings and 24-hours prior to special meetings. It is City policy to make every effort to post the agenda on Thursday, 11 days prior to Monday meetings, whether regular or special. Agendas are posted in King Plaza by the elevators and are uploaded to the City Council web page. Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 11  Packet Pg. 273 of 318  9 City Council Protocols and Procedures Handbook (d) Supporting Reports and Materials It is City policy to make every effort to provide supporting reports and materials at the time the agenda is posted. Typically, this will occur 11 days before the meeting. Materials that are not available at the time of agenda posting will be distributed as soon as feasible before the meeting. Materials that are distributed to a majority of Council will be made available to the public at the same time, as required by law. Some materials, such as presentation materials or “supplemental memoranda” (previously referred to as “at places” memoranda) may be distributed to Council members and the public at the meeting. (e) Late Submittal of Correspondence or Other Information Related to Planning Applications In order to allow for adequate staff review and analysis and to ensure public access to information, all plans, correspondence, and other documents supporting planning applications being heard by the City Council must be submitted to staff not later than noon five (5) working days prior to the release of the Council Agenda Packet. If any correspondence or other information is submitted after this deadline to Council members or staff, and staff determines additional review is needed, staff will reschedule the item for a future Council meeting. If a Council member receives planning application materials from a project applicant, or receives other significant material related to the application from any source, he or she shall notify the City Clerk and the City Manager as soon as possible so that all relevant material can be entered into the official record and made available to all parties and the public. At the meeting the City Council may determine whether to continue or refer the item to the appropriate board and/or commission if significant changes to a project or significant new information become known. 2.2 The Mayor and Vice Mayor Should Work with Staff to Plan the Council Meetings There are three purposes to the pre-Council planning meeting: 1) to plan how the meeting will be conducted, including review of approximate time allocation of Staff Report presentations and to ensure adequate time for large complex items; 2) to identify any issues or questions that may need greater staff preparation for the meeting; and 3) to discuss future meetings. Consideration in building the agenda should be given to the potential length of the meeting and at what point items of significant public concern may be heard. The purpose of the meeting is not to work on policy issues. Normally, only the Mayor and Vice Mayor are invited and expected to attend the pre-Council meetings with the City Manager, other CAOs, and department managers. The Mayor and Vice Mayor’s role is to represent the interest of the entire Council. 2.3 Attendance Procedures (a) Attendance Required Council members, the City Clerk, City Attorney, and City Manager, along with any other City officers and department heads that have been requested to be present, shall take their regular stations in the Council Chambers at the start of every scheduled meeting. The presiding officer will ensure that each meeting will include at least one 15-minute break. The Council expects its members to attend regularly and notify the City Clerk of any planned absences. The Council may levy fines of Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 12  Packet Pg. 274 of 318  10 City Council Protocols and Procedures Handbook up to $250.00 against Council members who willfully fail to attend meetings (PAMC section 2.04.050). (b) Remote Attendance of Council Members at Council and Committee Meetings Council members are strongly encouraged to attend meetings in person. State law allows Council members to attend meetings remotely by following the procedures outlined in Government Code Section 54953(b) (“Standard Remote Attendance”) or the procedures outlined in Assembly Bill 2449 (2022) (“AB 2449 Remote Attendance”). For convenience, these procedures are summarized below and are current as of the date of Handbook revision. If state law is subsequently amended, the amended terms of State law will apply. Council members are encouraged to consult in advance with the City Clerk and, if needed, the City Attorney to ensure compliance with all required procedures. 1) Number of Remote Appearances Remote attendance shall be permitted not more than 3 five (5) times a year per legislative body (for example, five times a year for full Council meetings and five additional times a year for each Council committee). AB 2449 rules still apply which state that no more than two meetings may be attended remotely during a calendar year for “just cause,” as described below. 2) General Procedures for Appearing Remotely Council members must follow mandatory procedures set forth in State law. At any meeting where a Council member is attending remotely, the following requirements must be met: (A) At least a quorum of the Council must participate from a singular physical location within the City. (B) The agenda must identify and include an opportunity for the public to attend and directly address the council member through a call-in option, an internet-based service option, and in-person at the location of the meeting. (C) Council may not take action if there is an unresolved disruption to the meeting broadcast or to the ability to take call-in or internet-based public comment. If the above threshold requirements are met, the Council member attending remotely must ensure they follow the procedures associated with either Standard Remote Attendance or AB 2449 Remote Attendance. 3) Standard Remote Attendance Procedures A Council member attending remotely using these procedures must ensure that: (A) The meeting agenda identifies the remote attendance location and is posted at that location in an area that is accessible and visible 24 hours a day for at least 72 hours prior to a regular meeting and 24 hours prior to a special meeting. (B) The remote attendance location is open and fully accessible to the public, and fully accessible under the Americans with Disabilities Act, throughout the entire Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 13  Packet Pg. 275 of 318  11 City Council Protocols and Procedures Handbook meeting. These requirements apply to private residences, hotel rooms, and similar facilities, all of which must remain fully open and accessible throughout the meeting, without requiring identification or registration. (C) The remote attendance technology used is open and fully accessible to all members of the public, including those with disabilities. (D) Members of the public who attend the meeting at the remote attendance location have the same opportunity to address the Council from the remote location that they would if they were present in Council Chambers. (E) The remote attendance location must not require an admission fee or any payment for attendance. (F) If the meeting will include a closed session, the Council Member must ensure that there is a private location available for that portion of the meeting. A private location means a closed room such that no other person can hear any portion of the closed session. If the Council Member intends to follow the procedures of Standard Remote Attendance but determines that any or all of these requirements cannot be met, he or she shall not participate in the meeting remotely using Standard Remote Attendance procedures. 4) Standard Remote Attendance Guidelines (A) Five days written notice in advance of the publication of the agenda must be given by the Council member to the City Clerk’s office about their intent to participate remotely; the notice must include the address at which the remote attendance will occur, and the address the Council packet should be mailed to, if a hard copy is requested. (B) The Council member is responsible for posting the Council agenda in the remote location, or having the agenda posted by somebody at the location and confirming that posting has occurred. The City Clerk will assist, if necessary, by emailing, faxing or mailing the agenda to whatever address or fax number the Council member requests; however, it is the Council member’s responsibility to ensure that the agenda arrives and is posted. If the Council Member will need the assistance of the City Clerk in delivery of the agenda, the fax number or address must be included in the five-day advance written notice above. (C) The Council Member must ensure that the location will be publicly accessible while the meeting is in progress. (D) The Council Member must state at the beginning of the Council meeting that the posting requirement was met at the location and that the location is publicly accessible and must describe the location. Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 14  Packet Pg. 276 of 318  12 City Council Protocols and Procedures Handbook 5) AB 2449 Remote Attendance Procedures In 2022 the Legislature adopted AB 2449, which amended the Brown Act to allow remote participation in certain narrow circumstances (listed below) without publishing the remote location on the meeting agenda and without providing public access from the remote location. Where the requirements of AB 2449 are met, a Council member is not required to follow the procedures described in Section 2.3(b)(3)(A)-(E), above. A Council member may use AB 2449 if the Council member has either “just cause” or “emergency circumstances” that require remote participation, as defined by AB 2449. (A) Just cause. i.“Just cause” is defined as: a. a childcare or caregiving need of a child, parent, grandparent, grandchild, sibling, spouse, or domestic partner that requires remote attendance, b. a contagious illness that prevents in-person attendance, c. a need related to a physical or mental disability which cannot be resolved by a request for reasonable accommodation, or d. travel while on the business of a state or local agency. ii. Notice. A Council member with “just cause” to attend remotely must notify the Council or Council committee and the City Clerk at the earliest possible opportunity, including at the start of the meeting, of their need to participate remotely and provide a general description of the circumstances. (B) Emergency Circumstances. “Emergency circumstances” is defined as a physical or family medical emergency that prevents a Council member from attending the Council meeting in person. i. Notification and acceptance. a. A Council member attending remotely due to “emergency circumstances” must notify the Council or Council committee and the City Clerk at the earliest possible opportunity. b. The Council or Council committee must request a general description of the circumstances relating to the Council member’s need to appear remotely. The description does not need to have more than 20 words, and the Council member does not have to disclose any personal medical information. c. At the earliest opportunity available to it, the Council or Council committee must, by a majority vote of its members, take action on the request to approve or disapprove it. If the request does not allow sufficient time to place it on the agenda for the meeting for which the request is made, the legislative body must take action on the request at Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 15  Packet Pg. 277 of 318  13 City Council Protocols and Procedures Handbook the beginning of the meeting by majority vote. (C) Disclosures. Council members attending remotely must publicly disclose at the meeting before any action is taken whether any other individuals 18 years of age or older are present in the room at the remote location with the member and the general nature of the member’s relationship with the individual. (D) Technology. Council members attending remotely shall participate using both audio and visual technology. If the Council member intending to follow the procedures of AB 2449 Remote Attendance determines that any or all of these requirements cannot be met, he or she shall not participate in the meeting remotely using AB 2449 Remote Attendance procedures. 6) AB 2449 Remote Attendance Sample Scripts At the start of the meeting, the Council member attending remotely may use the following language to identify under which provision they are attending remotely: Just Cause: “I have just cause to attend this meeting remotely under AB 2449. I have not attended a meeting remotely due to just cause more than once this calendar year. I have attended [NUMBER] meetings remotely this calendar year. I must attend this meeting remotely because… 1. “… I must provide caregiving to [RELATION].” 2. “… a contagious illness prevents me from attending in person.” 3. “… I have a need related to a disability which could not be accommodated at this meeting.” 4. “… I am travelling while on official business of [STATE OR LOCAL AGENCY].” “In this room, I am accompanied by… 1. “…no one over the age of 18.” 2. “…one or more individuals over the age of 18. They are [RELATION (e.g., my spouse, coworker, medical provider)].” Emergency Circumstances: “Due to emergency circumstances, I request to attend this meeting remotely under AB 2449. I have attended [NUMBER] meetings remotely this calendar year. The [PHYSICAL OR FAMILY] medical emergency I am facing requires my remote attendance because [BRIEF DESCRIPTION].” “In this room, I am accompanied by… 1. “…no one over the age of 18.” 2. “…one or more individuals over the age of 18. They are [RELATION (e.g., my spouse, coworker, medical provider)].” Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 16  Packet Pg. 278 of 318  14 City Council Protocols and Procedures Handbook 2.4 Colleagues’ Memos Council members may bring forward a colleagues’ memo on any topic to be considered by the entire Council. A minimum of two Council members are required to place such a memo on the agenda, reflective of the Council procedure requiring a motion and a second for consideration of a motion by the Council. Up to three Council members may sign a colleague memo. To comply with the Brown Act, three is the maximum number Council members who may discuss or sign onto a colleagues’ memo. Prior to preparing a colleagues’ memo, Council members should consult with the City Manager to determine whether the City Manager is able to address the issues as part of their operational authority and within current budgeted resources. Colleagues memos should include a section drafted by the City Manager that identifies any potential staffing or fiscal impacts of the contemplated action. Council members shall provide a copy of the proposed memo to the City Manager and City Attorney prior to finalization. Completed Council colleagues’ memos should be provided to the City Manager, City Attorney and City Clerk with as much advance notice as possible, to provide time for staff to prepare the resource impact section and prepare the memo for placement on the agenda. The Council will not take action on the night that a colleagues’ memo is introduced if it has any implications for staff resources or current work priorities which are not addressed in the memo. The Council will discuss the colleagues’ memo and refer it to a committee or direct the City Manager to agendize the matter for Council action. Action may be taken immediately by the Council on colleagues’ memos where there are no resource or staffing implications, or where these implications are fully outlined in the colleagues’ memo. The Brown Act requires that the public be fully informed of the potential action by the Council when the agenda is published. In order to satisfy the Brown Act requirements, the Council should consult with the City Attorney to ensure that the proposed title to the colleagues’ memo contains all actions that the Council members want completed on the night of the Council review. Council members nearing the end of their term desiring to submit a colleagues’ memo should consider submittal timing and steps needed in order to ensure Council discussion prior to the end of their term. Staff will make best efforts to agendize such memos prior to the end of the Council term. ** * SECTION 3 - CITY COUNCIL MEETING ORDER OF THE AGENDA City Council agendas will be prepared by the City Clerk and presented to the City Council in the order described below, except as determined otherwise by the Mayor in consultation with the City Manager. In setting the agenda, the typical order of agenda items is as shown below but the ordering can be changed in the agenda-setting process if needed. The City Manager, with prior approval of the Mayor, is authorized to designate upon the agenda items that shall be taken up first or at a specific time during the course of the meeting (PAMC section 2.04.070.) The City Council may take matters up out of order upon approval by a majority vote of those present: Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 17  Packet Pg. 279 of 318  15 City Council Protocols and Procedures Handbook Call to Order Special Orders of the Day Closed Session Agenda Changes, Additions and Deletions General Public Comment Council Member Questions, Comments and Announcements Study Session Consent Agenda Items may be placed upon the consent calendar by any council-appointed officer whenever, in such officer's judgment, such items are expected to be routinely approved without discussion or debate. Council Minutes are approved on Consent. The consent calendar shall be voted upon as one item. City Manager Comments Action Items Adjournment Items Considered After 10:30 p.m.: The Council makes every effort to end its meetings before 11 p.m. With that goal in mind, the Council generally does not start discussion of new matters after 10:30 p.m. Before 10 p.m. the Council will decide and announce whether it will begin consideration of any agenda items after 10:30 p.m. and, if so, which specific items will be taken up. 3.1 Call to Order The meeting can be called to order in recognition of a holiday or special designation to bring awareness and show appreciation of that holiday or special designation. The Mayor will determine such recognitions in consultation with the Manager, and dates will primarily originate from a calendar adopted by the Council. 3.2 Special Orders of the Day Council may acknowledge a special appreciation for individuals or groups for achievements, holidays (dates included in the annual Council-adopted calendar), etc., through the Special Order of the Day. This can be done through: - A certificate of recognition for individuals linked to a certain event or holiday - Information read by Council members in honor of a group or individual - A proclamation or resolution presented to a group or individual - Informational presentation from a community group about their program. 3.3 Closed Sessions Closed sessions are the only part of a Council meeting that the public cannot attend though to the public may make public comments before the start of the closed session. Council may meet in closed Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 18  Packet Pg. 280 of 318  16 City Council Protocols and Procedures Handbook session only as specifically authorized by State law. The most common types of closed sessions are labor negotiations, litigation, employment issues, and real estate negotiations. The Council will make a public report after the session where required by State or local law. (a) Closed Session Requirements 1) Announcements Before Closed Sessions The Mayor/City Clerk shall announce the item or items to be considered in closed session by reference to the appropriate agenda number or letter, or in an alternate form that shall be provided by the City Attorney. 2) Public Comments Members of the public are permitted to make public comments on closed session matters. The City Clerk shall be present in the open session to record Council attendance and any statements made by the public or by the Council. 3) Vote to Go into Closed Session The Council shall vote to go into closed session. 4) Attendance The City Manager and City Attorney, or their designees, shall attend closed sessions unless it is necessary to excuse them. Additional staff and consultants may attend, but only to the extent that their attendance is necessary to support Council’s consideration of the item. 5) Public Reports State and local law require the Council to make a public report after a closed session when certain kinds of actions are taken (PAMC section 2.04.030). Reports from closed sessions shall be made by the Mayor, the Vice Mayor in the Mayor's absence, or such other City representative as designated by the Council. Such designated person is the only individual authorized to make public statements concerning the closed session. It is the policy of the Council to inform the public of action taken in closed session to the greatest extent possible. It is recognized, however, that the need for confidentiality is inherent in closed sessions and that certain matters if revealed may be a detriment to the results desired. The Council shall publicly report: (A) any decision to appoint, employ, or dismiss a public employee and the roll call vote thereon at its next public meeting; (B) actions related to litigation and the roll call vote on such actions, unless the report would, in the written opinion of the City Attorney for specifically stated reasons, clearly jeopardize the City’s ability to effectuate service of process on one or more unserved parties or impair the City’s ability to resolve the matter through negotiation, mediation or other form of settlement. Notwithstanding the City Attorney's written opinion, the Council may under any circumstance, by majority vote, determine that it is in the City's best interests to disclose actions taken in Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 19  Packet Pg. 281 of 318  17 City Council Protocols and Procedures Handbook closed session related to litigation. The public report shall be given as soon as possible, but no later than the next regular meeting, and shall include the vote or abstention of every member present. The City Attorney’s written opinion shall be made public, along with any action taken and any vote thereon, as soon as any litigation is concluded. The City Attorney shall record any action and vote upon such forms as the City Attorney may deem desirable; (C) Other matters as required by law. 6) No Minutes No minutes of closed sessions shall be kept. The City Attorney shall record the information necessary to comply with State law and Municipal Code section 2.04.030. 7) Confidentiality No person in attendance at a closed session may disclose the substance or effect of any matter discussed during the session (PAMC section 2.04.040), except to the extent authorized by a majority vote of Council or as required by a court. 3.4 Agenda Changes, Additions, and Deletions (a)By majority vote, Council may change the order or delete an item from the agenda. Council may not add items to the agenda except in cases of emergency as defined by State law. (b)When the Council decides to reschedule business items, the business items will generally be rescheduled as follows: 1) Items Rescheduled to a Date Uncertain When Council reschedules an item to a date uncertain, the City Manager, Clerk and Mayor shall confer on an appropriate date to reschedule the item. 2) Items Rescheduled to a Date Certain Council may reschedule an item to a specific future Council meeting. 3.5 General Public Comment (see Section 5 on Public Participation for more details about “General Public Comment”) 3.6 Council Member Questions, Comments, and Announcements (including reports on Boards, Commissions, and Committees) The purpose of this agenda item is to allow Council to briefly ask staff about matters upon which Council has taken action or given direction, make general comments as a reference to staff on factual matters of community concern, or make brief announcements in a manner consistent with Government Code section 54952.2. If more than brief statements are desired, the item shall be agendized for a future meeting in the manner otherwise provided by these Procedures, such as by the City Manager or through a Colleagues Memo. Major policy issues and new assignments will not be discussed or considered in this item. To the extent possible, Council will confer with staff before raising matters under this agenda item. This agenda item will generally last up to 15 minutes and the Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 20  Packet Pg. 282 of 318  18 City Council Protocols and Procedures Handbook public may not comment. 3.7 Study Sessions Study Sessions are agenda items during which the Council receives information about City business in an informal setting. Study sessions are intended to be discussion items only. The Decorum rules still apply to the behavior of the Council and public. (a) Study Session Procedures 1) Time Special study sessions will be held as needed. 2) Topics and Process Study sessions are intended to be conducive to in-depth factual presentations by City staff and detailed questioning and brainstorming by Council on issues of significant interest. The Council may discuss the material freely without following formal rules of parliamentary procedure, and the shall have discretion to determine the appropriate process for conducting the study session, including when public comment will be heard. 3) Public Participation Members of the public are allowed to make public comments on study session matters at the time directed by the presiding officer. The general rules of decorum apply. 4) No Action Taken Staff may be directed to bring matters back for Council consideration at future meetings, as no action can be taken. 3.8 Consent Agenda The Consent Agenda is the section where items not anticipated to require discussion can be presented and acted upon efficiently by Council. This generally includes administrative items; implementation of policies and programs previously approved by Council, including contracts; and other routine or non-controversial items. The Mayor and City Manager should be sensitive to high dollar value contracts and consider placing those items in the action agenda section. The consent section may include: (a) Ordinances and Resolutions The following ordinances and resolutions may appear on a consent calendar: 1) Second Reading (passage and adoption) of Ordinances. 2) Resolutions that are ceremonial in nature. 3) Ordinances or resolutions that implement a prior Council policy direction in the manner contemplated by the Council's previous actions, in the Adopted Budget (including the Capital Improvement Program and especially in the department key plans), the Council Priorities, and other similar sources. Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 21  Packet Pg. 283 of 318  19 City Council Protocols and Procedures Handbook 4) Budget amendments that accept funding such as grants or gifts, provided Council has previously approved the activity or program. 5) Resolutions approving funding applications, such as grants or loans, provided that the program or activity has been previously approved by Council. 6) Clerical amendments to local laws. 7) Conforming amendments to local laws that are required by State law, except items of significant public interest. (b) Administrative Matters Including Contracts, Appointments, Approval of Applications, and Any Other Matter An administrative matter may be placed on the consent calendar if it is: 1) An action that is merely the administrative execution of previous Council direction. The Council direction and vote will be quoted in the Staff Report accompanying the item. 2) Contracts for which the subject or scope of work has been previously reviewed by the City Council. 3) A contract for goods, general services, professional services, public works projects, dark fiber licensing contracts or wholesale commodities, purchases, as outlined in the Purchasing Ordinance, provided such contracts represent the customary and usual business of the department as included in the Adopted Budget. Examples include routine maintenance contracts, annual audit agreements software and hardware support agreements, janitorial services, and copier agreements or postage machine agreements. 4) Designation of heritage trees. 5) Designation of historic building at the request of the property owner if there are no unusual policy ramifications. 6) Approval of funding applications, such as grants or loans, provided that Council has previously approved the general program or activity. 7) Items identified in the Municipal Code for placement on Consent. This includes, for example, certain appeals of determinations of the Director of Planning and Development Services. 8) Approval of minutes. 9) Referral of an item to a Standing Committee, Committee, Board, Commission, or Council Appointed Officer. 10) Other similar matters as determined by the City Manager, in consultation with the Mayor. (c) Items Unanimously Recommended for Approval by a Council Committee or Council-Appointed Board or Commission, Unless Otherwise Recommended by the Committee/Commission, Mayor, City Attorney or City Manager Items recommended unanimously for approval by Council committees and Council-appointed boards and commissions are generally placed on Consent, except as otherwise recommended by Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 22  Packet Pg. 284 of 318  20 City Council Protocols and Procedures Handbook the Committee, Board or Commission, or the Mayor, City Manager or City Attorney, or as required by law. (d) Public Comment on Consent Agenda Members of the public wishing to speak to items on the Consent Calendar shall be permitted to speak prior to Council Member requests to remove an item or the vote to adopt the Consent Calendar. (e) No Discussion or Debate; Voting; Recusals; Speaking to a No Vote There shall not be discussion or debate on any item on the Consent agenda. A Council member who needs to recuse themself from a Consent item shall inform the Mayor and make any public disclosure that is required. The Clerk shall record the recusal on the item. Any Council member may request that his or her vote be recorded as a "no" on any item or items on the Consent agenda. Any Consent item not receiving the number of “yes” votes required for the item is not approved. Council members may explain their "no" votes at the end of the Consent Agenda, with 3-minutes permitted for non-appeal items and 5 minutes for appeal items for each Council member. Council members may also submit statements in writing to the City Clerk before action is taken. The City Clerk shall preserve and make available such written statements in a manner consistent with the Brown Act and shall assure that the minutes of the meeting make reference to the existence and location of such written statements. (f) Council Requests to Remove Items from Consent Agenda Three Council members may request that an item be removed from the Consent Agenda except where otherwise required by the Municipal Code. Under the Municipal Code, four votes are required to remove a second reading of an ordinance from the Consent Agenda. Removed items will be heard either later in the meeting or agendized for a subsequent meeting, depending upon the number of speakers, the anticipated length of the items that have been officially scheduled for discussion on a particular evening, the availability of staff required to support the discussion, and legally- required noticing procedures. The Mayor, in consultation with the City Manager, will decide when any removed items will be heard. Council members who intend to request to remove an item should strive to inform the City Manager’s office no later than noon the Sunday before the meeting. This is so that the Manager can assess the operational impacts of rescheduling a removed item to a later agenda and, if appropriate, can arrange for appropriate staff to attend Council to support consideration of the item. 3.9 City Manager’s Comments 3.10 Action Items 3.11 Adjournment Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 23  Packet Pg. 285 of 318  21 City Council Protocols and Procedures Handbook ** * SECTION 4 - PROCEDURES AT CITY COUNCIL MEETINGS 4.1 Council Motion and Voting Processes throughout the Agenda (exist. Procedures 2.4 U and V) (a) Motions, Debate & Voting Policy and Summary of Rules It is the policy of the Council to follow simplified rules of parliamentary procedure for motions, debate and voting as an alternative procedure to Robert’s Rules of Order. These rules focus on the types of motions the Council can make and when those motions are properly used. See the Summary Table below. Purpose The purpose of these rules to facilitate orderly and thorough discussion and debate of Council business in order to create open respectful discussion and results that serve the public interest. (b)Motions A motion is a formal proposal by a Council member asking that the Council take a specified action. A motion must receive a second before the Council can consider a matter. Motions may be provided to the City Clerk in advance of the Council meeting so that the Clerk can efficiently post the motion on the screen for the convenience of the community and Council members. There are two types of motions; these are the “main” motion and any secondary motions. Only one main motion can be considered at a time. The main motion is the first motion to be made and receive a second. A secondary motion is described below which can be considered while a main motion is pending. 4.2 Motion Procedures (a) Main Motion Procedures 1) Get the Floor A Council member should seek permission of the presiding officer before making a motion. 2) State the Motion A motion is made by a Council member (the “maker”) stating his or her proposal. Longer proposals can be written. 3) Second Required Any other Council member (including the presiding officer) who supports the proposal (or who simply wishes it to be considered) may “second” the motion without first being recognized. Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 24  Packet Pg. 286 of 318  22 City Council Protocols and Procedures Handbook 4) Motion Transcribed The Clerk shall transcribe the motion so that Council members, the public and staff can read it. 5) Lack of a Second If there is no second stated immediately, the presiding officer should ask whether there is a second. If no Council Member seconds the motion the matter will not be considered. 6) Discussion The maker shall be the first Council member recognized to speak on the motion if it receives a second. The seconder shall be the second Council member to speak on the motion. Generally Council members will speak only once with respect to a motion. If the presiding officer or Council permits any Council member to speak more than once on a motion, all Council members shall receive the same privilege. 7) Secondary Motions Secondary motions may be made by a Council member upon getting the floor. 8) Action After discussion is complete the Council will vote on the motion under consideration. (b)Secondary Motion Procedures Only one main motion may be entertained by Council at a time. The Council recognizes the following secondary motions which may be considered while a main motion is pending. These motions shall have precedence in the order listed below. This means that a secondary motion that is higher on the list will be considered ahead of a pending secondary motion that is lower on the list: The purpose of the allowed secondary motions is summarized in the following text and table. 1) Fix the time to which to adjourn This motion sets a time for continuation of the meeting. It requires a second, is amendable and is debatable only as to the time to which the meeting is adjourned. 2) Adjourn This motion ends the meeting or adjourns it to another time. It requires a second and is not debatable except to set the time to which the meeting is adjourned, if applicable. A motion to adjourn shall be in order at any time, except as follows: (a) when repeated without intervening business or discussion; (b) when made as an interruption of a member while speaking; (c) when the previous question has been ordered; and (d) while a vote is being taken. 3) Take a recess This motion interrupts the meeting temporarily. It is amendable but is not debatable. 4) Raise a question of personal privilege This motion allows a Council Member to address the Council on a question of personal Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 25  Packet Pg. 287 of 318  23 City Council Protocols and Procedures Handbook privilege and shall be limited to cases in which the Council Member's integrity, character or motives are questioned or when the welfare of the Council is concerned. The maker of the motion may interrupt another speaker if the presiding officer recognizes the "privilege." The motion does not require a second, is not amendable and is not debatable. 5) Lay on the table This motion is used to interrupt business for more urgent business. A motion to lay on the table requires a second, is not amendable and is not debatable. It shall preclude all amendments or debate of the subject under consideration. If the motion prevails, and the subject is tabled, the matter must be reagendized in the future if further consideration is to be given to the matter. 6) Previous question This motion “calls the question” by closing debate on the pending motion. A motion for previous question requires a second, is not debatable and is not amendable. It applies to all previous motions on the subject unless otherwise specified by the maker of the motion. If motion for previous question fails, debate is reopened; if motion for previous question passes, then vote on the pending motion. A motion for previous question requires a two- thirds vote of those Council members present and voting. 7) Limit or extend debate This motion limits or extends the time for the Council or any Council Member to debate a motion. It requires a second, is amendable and is not debatable. The motion requires a two-thirds vote of those Council members present and voting. 8) Continue to a certain time This motion continues a matter to another, specified time. It requires a second, is amendable and is debatable as to propriety of postponement and time set. 9) Refer to a city agency, body, committee, board, commission or officer This motion sends a subject to another city agency, body, committee, board, commission or officer for further study and report back to Council, at which time subject is fully debated. It requires a second, is amendable, and is debatable only as to the propriety of referring. The substance of the subject being referred shall not be discussed at the time the motion to refer is made. 10) Amend or substitute A motion to amend retains the original motion and modifies it in some way. A substitute motion deletes the original motion and replaces it with a different motion. Both require a second, are amendable, and are debatable only when the motion to which they appy is debatable. A motion to amend an amendment is in order, but one to amend an amendment to an amendment is not. An amendment modifying a motion is in order but an amendment raising an independent question or one that is not germane to the main motion shall not be in order. Amendments take precedence over the main motion and the motion to postpone indefinitely. Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 26  Packet Pg. 288 of 318  24 City Council Protocols and Procedures Handbook C. Motion Process Reference Chart Motion Description 2nd Required Debatable Amendable 2/3 Vote Fix the time to which to adjourn Sets a next date and time for continuation of the meeting YES Only as to time to which the meeting is adjourned YES NO Adjourn Sets time to adjourn. Not in order if (a) repeated without intervening business (b) made as an interruption of a member while speaking; (c) the previous question has been ordered; and (d) while a vote is being taken YES Only to set the time to which the meeting is adjourned NO NO Take a recess Purpose is to interrupt the meeting YES NO YES NO Raise a question of privilege Allows member to address Council on a question of personal privilege limited to Council welfare or cases where a member’s personal integrity, character, or motives are questioned. NO NO NO NO Lay on the table Interrupts business for more urgent business YES NO NO NO Previous question (close debate or “call the question”) Closes debate on pending motion YES NO NO YES Limit or extend limits of debate Purpose is to limit or extend debate YES NO YES YES Motion to continue to a certain time Continues the matter to another, specified time YES YES YES NO Refer to committee Sends subject to another city agency, body, committee, board, commission or officer for further study and report back to council, at which time subject is fully debated YES Only as to propriety of referring, not substance of referral YES NO Amend or substitute Modifies (or reverses course of) proposed action. Cannot raise independent question. Can amend an amendment, but no further YES Only if underlying motion is debatable YES NO Motion to Reconsider Motion that can be made only during the meeting or adjourned meeting in which the action was taken YES YES NO NO Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 27  Packet Pg. 289 of 318  25 City Council Protocols and Procedures Handbook 4.3 Voting and Debate of Agenda Items (a) Presiding officer to review motion The presiding officer shall assure that all motions are clearly stated before allowing debate to begin. The presiding officer and the maker of the motion should work with the City Clerk to clarify the motion before allowing debate to begin. The presiding officer may review the motion prior to voting. (b) Presiding officer may debate and vote The presiding officer may move, second and debate from the chair, subject only to such limitations of debate as are by these rules imposed on all Council members. The presiding officer shall not be deprived of any of the rights and privileges of a Council member. (c) Division of question If the question contains two or more divisible propositions, each of which is capable of standing as a complete proposition if the others are removed, the presiding officer may, and upon request of a Council member shall, divide the same. The presiding officer's determination shall be appealable by any Council member. (d) Withdrawal of motion A motion may only be withdrawn by the maker with the consent of the Council Member seconding it. (e) Change of vote Council members may change their votes before the next item on the agenda is called. (f) Voting On the passage of every motion, the vote shall be taken by voice or roll call or electronic voting device and entered in full upon the record, except where state law requires a roll call vote (g) Failure to vote It is the responsibility of every Council member to vote unless the member is recused. No Council member can be compelled to vote. (h) Abstaining from vote Council members should only abstain if they are not sufficiently informed about an item, e.g., when there was a prior meeting on the topic and they were unable to view the prior meeting before the current meeting. In the event of an abstention, or silence during a vote, the abstainer in effect, "consents" that a majority of the quorum of the Council members present may act for him or her. (i) Not participating A Council member who is recused from an item due to a conflict of interest, common law bias, or other legal prohibition shall make disclosures required by law, leave the dais if required, and not participate in any way in the discussion or determination of the item. A Council member may otherwise disqualify themself to avoid an appearance of impropriety. Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 28  Packet Pg. 290 of 318  26 City Council Protocols and Procedures Handbook (j) Tie votes Tie votes may be reconsidered during the time permitted by these rules on motion by any member of the Council voting yes or no during the original vote. Before a motion is made on the next item on the agenda, any member of the Council may make a motion to continue the matter to another date. To the extent allowed by law, it is the Council’s intention that any continuance hereunder shall suspend the running of any time in which action of the Council is required by law. Nothing herein shall be construed to prevent any Council member from recommending the agendizing of a matter that resulted in a tie vote for a subsequent meeting. (k) Motion to reconsider A motion to reconsider any action taken by the Council may be made only during the meeting or adjourned meeting when the action was taken. A motion to reconsider requires a second, is debatable and is not amendable. The motion must be made by one of the prevailing side of an issue but may be seconded by any Council member. A motion to reconsider may be made at any time and shall have precedence over all other motions, or while a Council member has the floor, providing that no vested rights are impaired. The purpose of reconsideration is to bring back the matter for review. If a motion to reconsider fails, it may not itself be reconsidered. Reconsideration may be moved only once on the same motion. However, a Council member may make a motion to rescind such action at a subsequent meeting of the Council, provided an appropriate item is on the published agenda. (l) Appeal from the decision of presiding officer When the rules are silent, the presiding officer shall decide all questions of order, subject to appeal by a Council member. When in doubt, the presiding officer may submit the question to the Council, in which case a majority vote shall prevail. Any decision or ruling of the presiding officer may be appealed by request of any member. The presiding officer shall call for a roll call or electronic voting device vote to determine if the presiding officer's ruling shall be upheld. If said vote passes or results in a tie vote, the presiding officer's ruling shall stand. If said vote fails, the decision or ruling of the presiding officer is reversed. (m)Getting the floor; improper references to be avoided Every Council member desiring to speak shall address the presiding officer and, upon recognition by the presiding officer, every Council member shall be confined to the question under debate, avoiding all indecorous language and personal attacks. (n) Interruptions Except for being called to order, a Council member once recognized, shall not be interrupted when speaking, except as otherwise provided for in these rules. A Council member called to order while speaking shall cease speaking until the question or order is determined, and, if in order, said Council member shall be permitted to proceed. (o) Council Member Speaking Time The presiding officer shall give each Council member up to five (5) minutes to speak in each round of discussion during discussions on Council items where discussion takes place. The Council shall be guided by the speaking times set by the presiding officer and shall conclude comments at the Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 29  Packet Pg. 291 of 318  27 City Council Protocols and Procedures Handbook direction of the presiding officer . The presiding officer shall endeavor to treat all members equitably. 4.4 Quasi-Judicial Matters (a) Quasi-Judicial Matters It is the policy of the Council to assure that the due process rights of all persons are protected during City hearings. A “quasi-judicial” hearing is a hearing that requires a higher level of procedural due process because of the potential impact on life, liberty or property. Usually, quasi-judicial hearings involve consideration of an application to develop real property. The City, including Council and associated Boards and Commissions, reaches a determination by applying standards and requirements in existing law to the facts and evidence submitted in the hearing. Findings must be stated to explain the evidentiary basis for Council’s final decision. Purpose These rules are intended to assure that City Council decision making on quasi-judicial matters is based upon facts and evidence known to all parties and to support the role of Boards and Commissions in making independent recommendations to Council. General Requirements 1) Quasi-Judicial Proceedings Defined Quasi-judicial proceedings subject to these procedural rules include hearings involving the following matters: (A) Conditional Use Permits (B) Variances (C) Home Improvement Exceptions (D) Design Enhancement Exceptions (E) Subdivisions, other than final map approvals (F) Architectural Review (G) Other Matters as Determined by the City Attorney 2) Restrictions on Council Communications Outside of Quasi-Judicial Hearings It is the policy of the Council to discourage the gathering and submission of information by Council members outside of any noticed public meeting, prior to final recommendations by the Architectural Review Board or Planning & Transportation Commission. The following procedural guidelines are intended to implement this policy but shall not be construed to create any remedy or right of action. 3) Identification of Quasi-Judicial Matters The City Attorney, in conjunction with the City Clerk and City Manager, will identify agenda items involving quasi-judicial matters on both the tentative and regular Council agendas. This identification is intended to inform the Council, interested parties, and the public that this policy will apply to the matter. Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 30  Packet Pg. 292 of 318  28 City Council Protocols and Procedures Handbook 4) Council to Track Contacts Council members should track contacts with any person or entity pertaining to quasi-judicial matters. Contacts include conversations, meetings, site visits, mailings, or presentations during which substantial factual information about the item is gathered by or submitted to the Council Member. 5) Disclosure When a quasi-judicial matter is agendized at Council, Council members will disclose on the record any contacts they have had outside of a noticed meeting, identify any new or different information they have received, and note information that may influence their preliminary views or opinions about the item. Disclosures may be oral or written and should explain the substance of the contact so that the project applicant, other Council members, interested parties, and the public will have an opportunity to learn of the factors influencing the Council's decision and have an opportunity to controvert or rebut any such factor during the hearing. Disclosure alone will not be deemed sufficient basis for a request to continue the item. A contact or the disclosure of a contact shall not be deemed grounds for disqualification of a Council Member from participation in a quasi-judicial matter unless the Council Member, in consultation with the City Attorney, determines that the nature of the contact is such that it is not possible for the Council Member to reach an impartial decision on the item. 6) No Contacts after Hearings Following closure of a quasi-judicial hearing, and prior to a final decision, Council Members will refrain from any contacts pertaining to the item, other than clarifying questions directed to City staff. 7) Written Findings Required On any matter for which state law or City ordinance requires the preparation of written findings, the staff report and other materials submitted on the matter will contain findings proposed for adoption by the Council. Any motion directly or impliedly rejecting the proposed findings must include a statement of alternative or modified findings or a direction that the matter under consideration be continued for a reasonable period of time in order for staff to prepare a new set of proposed findings consistent with the evidence which has been presented and the decision which is anticipated. 8) Rules of Evidence Council hearings need not be conducted according to formal rules of evidence. Any relevant evidence may be considered if it is the sort of evidence upon which responsible persons rely in the conduct of serious affairs. The presiding officer may exclude irrelevant or redundant testimony and may make such other rulings as may be necessary for the orderly conduct of the proceedings while ensuring basic fairness and full consideration of the issues involved. Evidentiary objections shall be deemed waived unless made in a timely fashion before the Council. Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 31  Packet Pg. 293 of 318  29 City Council Protocols and Procedures Handbook 9) Council Members Who are Absent During Part of a Hearing A Council member who is absent from any portion of a hearing conducted by the Council may vote on the matter provided that he or she has watched the video record of the entire portion of the hearing from which he or she was absent and if she or he has examined all of the exhibits presented during the portion of the hearing from which he or she was absent. Council members who were absent should state for the record that they have reviewed the proceedings and materials. (b) Presenting at Quasi-Judicial Hearings In the case of a quasi-judicial hearing, single applicants and appellants shall be given 10 minutes for their opening presentation and 3 minutes for rebuttal before the hearing is closed. In the case of a quasi-judicial hearing for which there are two or more appellants, the time allowed for presentation and rebuttal shall be divided among all appellants, and the total time allowed for all appellants shall be a total of twenty minutes for the opening presentation and six minutes for rebuttal before the hearing is closed; however, each individual appellant shall be given a minimum of 5 minutes for presentation and 3 minutes for rebuttal. In the event a request is made and the need for additional time is clearly established, the Presiding Officer shall independently, or may upon advice of the City Attorney, grant sufficient additional time to allow an adequate presentation by the applicant or appellant. (c) Submittal of Materials Directly to Council If Council Members receive materials related to a quasi-judicial agenda item they should notify the City Clerk and the City Manager as soon as possible so that the materials can be placed in the official record and distributed to all Council members, parties to the proceeding, staff and the public. ** * SECTION 5 - HOW THE PUBLIC ENGAGES WITH THE CITY COUNCIL 5.1 Public Participation During City Council Meetings Overview The Council welcomes members of the public to participate in meetings through public comment opportunities. It is the policy of the Council to assure that members of the public have the opportunity to speak to any regular or special meeting agenda item before final action. These rules are intended to enhance public participation and Council debate so that the best possible decisions can be made for Palo Alto. Palo Alto has a long and proud tradition of open government and civil, intelligent public discourse. Open government meetings must allow everyone to be heard without fear of cheers or jeers. For these reasons, the Council takes these rules seriously. Disruptive or unruly behavior in violation of the law can result in removal from the Council meeting and/or arrest and prosecution. Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 32  Packet Pg. 294 of 318  30 City Council Protocols and Procedures Handbook (a) Access to Meetings 1) In-Person and Remote Participation Council meetings are available in person in the Council Chambers and through an online meeting platform. Members of the public are welcome to attend the meeting in person or to join the online meeting platform. 2) Translators Speakers may bring a translator as needed and will be allotted additional time, as appropriate. 3) ADA Access Palo Alto makes every reasonable effort to accommodate the needs of the disabled consistent with law. Any provision of these rules may be modified if needed to provide reasonable accommodation. Persons needing assistance should contact: the City Clerk, City of Palo Alto, 650- 329-2571 (voice) or email at City.Clerk@cityofpaloalto.orgCity.Clerk@cityofpaloalto.org. 4) If found feasible by staff, members of the public may be given the opportunity to activate their personal video during their public comments. (b) Summary of Rules for Public Participation Every regular Council agenda has two different kinds of opportunities for the public to speak. The first is during General Public Comment. The second is during the public comment or public hearing portion of each agenda item. 1) General Public Comment This part of the meeting is provided so that the public can speak to any subject that is in the Council’s jurisdiction, when there is no item listed on the agenda on that topic. The Council limits the total time to up to 30 minutes per meeting for General Public Comment. State law does not permit the Council to act on or discuss an item raised at that meeting in General Public Comment. Council members shall not enter into debate with speakers, but Council members may ask brief clarifying questions and may ask City staff to follow up on any concerns raised. 2) Public comment or public hearing portion of each agenda Item The Brown Act requires the opportunity for public comment on all listed agenda items, except ceremonial items, procedural items (Agenda Changes and Deletions) and brief announcements (City Manager Comments and Council Member Questions, Comments and Announcements). Public comments or testimony must be related to the matter under consideration. (c) Time Limits 1) Individual Speakers The presiding officer may announce the time that each speaker may use. The Council generally allows 3 minutes per speaker, but a shorter time may be designated when there are many speakers, numerous items on the agenda, or items anticipated to be lengthy. For example, if there are fewer than 10 speakers, the presiding officer may allow speakers 3 Commented [GC2]: City Council discussed on February 5, 2024 and provided next steps. Language to be updated to reflect Council motion. Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 33  Packet Pg. 295 of 318  31 City Council Protocols and Procedures Handbook minutes to speak. Or if there are more than 10 speakers, then the presiding officer may choose to reduce the time for each speaker. 2) Spokesperson for a Group When a group of people wishes to address the Council on the same subject matter, they may designate a spokesperson to address the Council. Spokespersons are subject to the same time limits as other speakers, except that spokespersons who are representing a group of five or more people who have requested to speak and are verified as present in the Council Chambers or online will be allowed 10 minutes and will, to the extent practical, be called upon ahead of individual speakers. If the presiding officer reduces the speaking time for individual speakers, the total speaking time for a spokesperson will also be reduced as determined by the presiding officer. (d) Gaining Permission to Speak Any person who wants to make a spoken public comment on an item on the Council agenda can do so if they are attending either in person or virtually. If attending in person, members of the public should fill out a speaker card and hand it in to the City Clerk prior to the end of the staff presentation. Members of the public participating virtually should use the “raise hand” function in the online meeting platform, or if participating via phone, hit *9 to notify the Clerk that they wish to speak. The Clerk will provide the names of the speakers to the Mayor or Vice Mayor so that the speakers can be identified and organized in an orderly way. The presiding officer will endeavor to identify in advance the time when public comment cards will no longer be accepted. (e) Public Decorum During Meeting The presiding officer at Council meetings (usually the Mayor or Vice-Mayor) is authorized and required to “preserve strict order and decorum.” (PAMC section 2.04.080(b).) This is important in order to assure a fair opportunity for everyone to participate in an open and civil setting. 1) No person, other than a Council member and the person having the floor, shall be permitted to speak without the permission of the presiding officer. 2) All remarks should be addressed to the Council as a body and not to any individual member or staff person. 3) No person, besides staff or the Council, shall enter the staff area of the Council dais without the permission of the presiding officer or appropriate Council Appointed Officer. 4) The Palo Alto Municipal Code makes it unlawful for any person to: (1) Disrupt the conduct of a meeting; (2) Make threats against any person or against public order and security while in the Council Chambers; (3) Use the Council Chambers during meetings for any purpose other than participation in or observation of City Council Meetings. Any Council Member may appeal the presiding officer’s decision on a decorum violation to the full Council. Decorum violations are a misdemeanor and may lead to a person being removed from the Council Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 34  Packet Pg. 296 of 318  32 City Council Protocols and Procedures Handbook meeting. (PAMC sections 2.04.120, 2.04.150.) (f) Record of Speakers 1) Persons wishing to address the Council within the meeting room, shall use the microphone provided for the public. All public speakers, whether in person or virtual participants shall speak in a recordable tone, either personally or with assistance, if necessary. 2) Speakers are requested to state their name but cannot be compelled to do so as a condition of addressing the Council. (g) End of Public Comment After a Council Motion Following the time for public input and once the matter is returned to the Council no person shall address the Council without first securing the permission of the presiding officer to do so, subject to approval of the City Attorney with respect to any hearing required by law. ** * SECTION 6 - CITY COUNCIL QUESTIONS ON AGENDA-RELATED ITEMS In order to facilitate open government, all Council Members should make decisions with the same information from Staff on agendized or soon-to-be agendized items (i.e., items on the tentative agenda or in a Council Committee). The Council adopted protocols provide a framework for the policy on e-mail communications between Council members and staff on agenda-related items, including the following: 6.1 Submit Questions on Council Agenda Items Ahead of the Meeting In order to focus the Council meetings on consideration of policy issues and to maintain an open forum for public discussion, questions which focus on the policy aspects of agenda items should be discussed at the Council meeting rather than in one-on-one communications with staff prior to the meetings. Any clarifications or technical questions that can be readily answered can be handled before the meeting. Council members are encouraged to submit their questions on agenda items to the City Manager or other appropriate Council Appointed Officer by 5:00 p.m. the Wednesday prior to the meeting so staff can be prepared to respond before or at the Council meeting. If a staff report is incomplete by 5:00 p.m. Thursday, there will be an extension to submit Council questions until 5:00 p.m. Friday. Council members are strongly discouraged from asking questions already addressed in the staff report. 6.2 City Council emails for Agenda-Related Items Procedure (a)Council members should direct any questions on staff reports and agenda items only to the City Manager or designee. Questions on reports from the City Auditor, City Attorney, or City Clerk should be directed to the appropriate Council Appointed Officer. (b)Council members should submit questions on agenda items no later than 5 p.m. on the Wednesday prior to the Council meeting at which the item will be discussed. Staff will make best reasonable efforts to post written responses to timely-submitted questions by Thursday 5 p.m. Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 35  Packet Pg. 297 of 318  33 City Council Protocols and Procedures Handbook Any questions received after 5 p.m. on the Wednesday before the meeting may be responded to via e-mail, or alternatively, will be responded to at the Council meeting. (c)Staff will not engage in “dialogues” with individual Council members regarding questions; however, follow-up questions to initial questions will be responded to at the Council meeting. (d)Staff will give highest priority to responding prior to the Council meeting via e-mail only on items on the Consent Agenda. Questions which address the policy aspects of the item on the Council agenda will not be responded to prior to the meeting, although Staff welcomes such questions in advance of the meeting in order to prepare for the Council and public discussion. Technical and clarifying questions on non-Consent Calendar items will be responded to as time permits. (e)If the staff will be responding to a Council members Consent Agenda question at the meeting rather responding to the question via e-mail, Staff will inform the Council member as early as possible after receipt of the question(s). (f)Questions and all staff-prepared responses will be forwarded to all Council members as well as posted online for public review of Council agenda questions and staff responses. Staff will include the name of the Council member posing the questions in the “subject” field of the e-mail response. (g)Copies of all Council member agenda questions and staff responses will be emailed to the Council p and posted publicly on the meeting agenda. If staff responses are not released until the meeting date, they will be provided in printed form at the dais. ** * SECTION 7 – COUNCIL VALUES AND ANNUAL COUNCIL PRIORITIES (a) Council Values In November 2022, the Council adopted a set of values as described here: The Palo Alto City Council holds these values to help guide decisions that: 1) Balance revenues and expenses, now and in the future. 2) Are environmentally sustainable. 3) Integrate equity into our decisions, considering how decisions affect people differently based on their identity or circumstances. 4) Make decisions that create a healthy, safe and welcoming community for all. 5) Safeguard public trust through transparent practices and open communication. 6) Embrace innovation. Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 36  Packet Pg. 298 of 318  34 City Council Protocols and Procedures Handbook (b) Annual Council Priorities Priorities Background and Definition The City Council adopted its first Council priorities in 1986. Each year the City Council reviews its priorities at its Annual Council Retreat. On October 1, 2012 the City Council formally adopted the definition of a Council priority, and the Council’s process and guidelines for selection of priorities. There is a goal of no more than three to four priorities per year and priorities generally have a two- to three-year time limit. Council can identify two to three specific objectives within a priority. A Council priority is defined as a topic that will receive particular, unusual and significant attention during the year. This varies from a Council value which is defined as an enduring goal and intention to guide the work of the City Council. The values (shared above) allow the City Council to maintain these enduring intentions while also selecting annual priorities that reflect shorter- term projects and goals. Purpose The establishment of Council priorities will assist the Council and staff to better allot and utilize time for discussion and decision making. Process In advance of the annual Council Retreat, staff will solicit input from the City Council on the priorities to be reviewed and considered for the following year. 1) Council members may submit up to three priorities. 2) Priorities should be submitted no later than December 1. 3) As applicable, the City Manager will contact newly elected officials for their input by December 1. 4)The City Manager and the City Clerk will solicit for the public to share proposed priorities prior to the Council retreat. The Policy and Services Committee shall recommend to the Council which suggestions if any shall be considered at the City Council retreat. 5) Staff will collect and organize the recommended priorities into a list for Council consideration and provide to Council in the packet for the City Council retreat. 6) If needed, the Policy and Services Committee, each year at its December meeting, shall make recommendations about the process that will be used at the Annual Retreat paying particular attention to the number of priorities suggested by Council members. The recommended process is to be forwarded to Council for adoption in advance of the Council retreat. ** * Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 37  Packet Pg. 299 of 318  35 City Council Protocols and Procedures Handbook SECTION 8 - PROCEDURES AND PROTOCOLS REVIEW AND ENFORCEMENT 8.1 Commit to Annual Review of Important Procedural Issues Once each legislative year, the Council will review the Procedures and Protocols Handbook. The Council will not politicize these procedural issues. 8.2 Enforcement Council members have the primary responsibility to assure that these protocols are understood and followed, so that the public can continue to have full confidence in the integrity of government. As an expression of the standards of conduct expected by the City for Council members, the protocols are intended to be self-enforcing. They therefore become most effective when members are thoroughly familiar with them and embrace their provisions. For this reason, Council members entering office shall sign a statement affirming they have read and understood the Council protocols. In addition, the protocols shall be annually reviewed by the Policy and Services Committee and updated as necessary. Under circumstances where Council members believe that actions by another Council member are inconsistent with this Handbook and require formal review and potentially action, a public discussion and censure are available steps for review and enforcement. 8.1. Annual Review and Update of the Handbook Once each legislative year, the Policy and Services Committee shall initiate a review and update of the Procedures and Protocols Handbook and may make recommendations to Council. Council will review the Handbook and the recommendations of Policy and Services and approve updates as appropriate. The Council will not politicize these procedural issues. 8.2. Commitment to Follow the Procedures and Protocols Handbook Councilmembers have the primary responsibility to assure that these procedures and protocols are understood and followed, so that the public can continue to have full confidence in the integrity of government. As an expression of the standards of conduct expected by the Council for Councilmembers, the procedures and protocols are intended to be self-enforcing. They are most effective when members are thoroughly familiar with them and embrace their provisions. For this reason, Councilmembers entering office shall sign a statement affirming they have read and understood the Council procedures and protocols. 8.3 Procedures for Enforcement When a concern arises regarding a Councilmember’s conduct, the concerned Councilmember or members are encouraged, where possible, to raise and attempt to resolve the concern at the lowest possible level, such as through one-on-one direct conversations (consistent with the Brown Act) or through the Mayor. Under circumstances where Councilmembers believe that actions by another Councilmember are inconsistent with , and that those actions require formal review and potential Council response, a public discussion and potential Commented [GC3]: This is the proposed language recommended by Policy and Services Committee in October 2023. (2-1 vote). Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 38  Packet Pg. 300 of 318  36 City Council Protocols and Procedures Handbook disciplinary action are available steps for review and enforcement. The following enforcement procedures are intended for serious or ongoing concerns that are not amenable to resolution through informal means. (a)Purpose. This policy provides the mechanism by which the City Council may adopt a resolution of censure or take other disciplinary action expressing the Council's disapproval of the conduct of a Council member if the Council finds, subject to the procedures set forth herein, that a Council member's conduct violates federal, state or local law, this Handbook, or any other document adopted by the Council. (b)Types of Disciplinary Actions. This section refers to the following types of disciplinary actions: (1)Admonition. An admonition is a warning or reminder. Council may direct an admonition to any or all members of the City Council, reminding them that a particular type of behavior is in violation of law or City policy, and that if it occurs or recurs, could make a member subject to a reprimand or censure. An admonition does not necessarily require an investigation or separate hearings to determine whether an allegation is true. However, while an admonition may be issued by the City Council prior to a formal investigation or any findings of fact regarding allegations, a significant factual basis should exist before issuing an admonition. In general, Council will provide its members with an opportunity to respond to the alleged violation before taking any action, including issuing an admonition. (2)Informal Reprimand and Direction to Correct. An informal reprimand is a reprimand directed to a Councilmember or members based on a particular action or set of actions that the Council determines violates law or City policy but is considered to be not sufficiently serious to require formal censure. The Council may include direction to the subject Councilmember or members to correct the particular behavior or the result of the behavior that violated law or City policy. (3)Resolution of Censure. Censure is a formal statement of disapproval expressed through a resolution. Censure is the strongest sanction available to Council, and is typically reserved for serious or recurring conduct, such as conduct that has substantially disrupted Council’s work, brought approbation on the City, or damaged public trust in City government. A resolution of censure may include the imposition of sanctions against the Councilmember, as allowed by law. Such sanctions may include, for example, removal from a committee or restrictions on City-related travel privileges. (c)Procedures. The following procedures are intended to guide Council to reach accurate and appropriate conclusions in an expeditious manner, while providing fairness and transparency for all Councilmembers and the public. Council will endeavor to adhere to these procedures, except where extraordinary circumstances require alternative steps be taken. In all cases, an opportunity to be heard will be afforded to any Councilmember who may be subject to informal reprimand or censure. (1)Should two or more Councilmembers believe that actions by a Councilmember are inconsistent with federal, state or local law, this Handbook, or any other document adopted by the Council, those Councilmembers may use a Colleagues Memo to schedule Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 39  Packet Pg. 301 of 318  37 City Council Protocols and Procedures Handbook public discussion of the matter at an upcoming City Council meeting. A Colleagues Memo may initiate a discussion of Councilmember conduct and Council expectations, may propose that Council protocols be clarified or a new protocol be included in this Handbook, or may propose initiation of disciplinary action. Proposed disciplinary actions may include admonition, informal reprimand, direction to correct, and/or censure. (2)If a Colleagues Memo proposes discipline of a Councilmember, the Memo must contain the specific charges on which the proposed discipline is based. Completed Council Colleagues Memos shall be provided to the City Clerk’s staff by noon on the Thursday 11 days prior to the Council meeting that the memo is intended to be agendized, to provide time for the City Clerk to process for the Council packet. The City Clerk will provide a copy of the Colleagues Memo to the Councilmember who is the subject of the memo no later than the Thursday 11 days prior to the meeting at which the memo is agendized. (3)The Councilmember who is the subject of the proposed disciplinary action may address the matter in writing or at the Council meeting or both. If the Councilmember submits written materials, those must be published in a supplemental packet, no later than 72 hours before the meeting. (4)During the Council meeting at which the Colleagues Memo is agendized, the Council will decide, by majority vote, whether: (i)A formal disciplinary hearing should be agendized for a future City Council meeting; (ii)Further investigation of the allegations is required; (iii)Further investigation is not warranted and an admonition should be issued; (iv)Council’s procedures and protocols should be clarified or a new procedure or protocol should be introduced; or (v)No further action is necessary. (5)If the Council determines that further investigation is required, the Mayor (or the Vice Mayor if the Mayor is the subject of the proposed disciplinary action) may designate an ad hoc committee to conduct the investigation. The Council or the ad hoc committee may select an independent investigator to assist in conducting the investigation. The independent investigator would be managed by the ad hoc committee or other official designated by Council. The ad hoc committee shall review the findings of the investigation and arrive at a recommendation to Council. The ad hoc committee should proceed as promptly as reasonably possible. (6)Upon receipt of the report of the ad hoc committee, the City Clerk shall place the matter on the Council's next agenda in order for the Council to receive the committee report and determine appropriate next steps. If the Council decides to set the matter for censure hearing, it shall schedule the hearing as soon as possible but no sooner than three weeks after its determination to hear the matter. Council shall give due consideration to requests from the subject Councilmember for additional time to prepare. The Council Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 40  Packet Pg. 302 of 318  38 City Council Protocols and Procedures Handbook shall not schedule the matter during any previously scheduled excused absence of the subject Councilmember. (7)The Mayor (or the Vice Mayor if the Mayor is the subject of the proposed disciplinary action) will designate a Councilmember responsible for preparing and submitting to the City Clerk a censure resolution and supporting materials. Final materials shall be submitted to the Clerk by noon on the Thursday 11 days prior to the Council meeting that the hearing is intended to be agendized, to provide time for the City Clerk to process the materials for the Council packet. The Councilmember assigned to prepare the materials will submit the draft resolution and supporting materials to the City Attorney’s Office no later than the Thursday 18 days before the hearing, to give the City Attorney’s Office adequate time to review the materials before publication. The City Clerk shall deliver written notice of the hearing, along with the report, proposed resolution, and supporting materials, to the Councilmember subject to the censure by close of business on the Thursday 11 days prior to the Council meeting for which the hearing is agendized. (8)The Councilmember who is the subject of the proposed disciplinary action may address the matter in writing or at the hearing or both. If the Councilmember submits written materials, those must be submitted in time to be published in a supplemental packet no later than 72 hours before the hearing. (9)At the disciplinary hearing, the Councilmember who is the subject of the request for disciplinary action shall have the opportunity to rebut the allegations in the censure resolution and to question any known complainants or witnesses if they agree to be questioned. The member subject to the charges may be represented and may have the representative speak or ask questions on their behalf. The questioning or cross-questioning of witnesses may be reasonably limited by the Mayor (or Vice Mayor if the Mayor is the subject of the proposed disciplinary action). Testimony shall be taken only from witnesses having direct knowledge of facts or circumstances relevant to the specific charges under consideration. However, the rules of evidence and judicial procedure applicable in courts of law shall not be apply to this hearing, and the procedures shall be generally informal. (d)Disciplinary Action. If, at the close of the hearing, a majority of the City Council finds that the subject member's conduct violates federal, state or local law, this Handbook, or any other document adopted by the Council, the Council may take one or more of the following actions: (1)Issue an Admonition. An admonition may be directed to any or all members of the City Council, reminding them that a particular type of behavior is in violation of law or City policy. (2)Issue an Informal Reprimand with possible Direction to Correct. An informal reprimand may be issued to a Councilmember or members based on a particular action or set of actions that the Council determines violates law or City policy but is considered to be not sufficiently serious to require formal censure. The Council may include direction to the subject Councilmember or members to correct the particular behavior or the result of the behavior that violated law or City policy. (3)Adopt a Formal Resolution of Censure, with or without additional sanctions. The City Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 41  Packet Pg. 303 of 318  39 City Council Protocols and Procedures Handbook Council may adopt a resolution of censure based on clear and convincing facts supporting the allegations of misconduct giving rise to the censure. A resolution of censure may include the imposition of sanctions against the Councilmember as a majority of the City Council deems appropriate, as allowed by law. Such sanctions may include, for example, removal from a committee and/or restrictions on City-related travel privileges. Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 42  Packet Pg. 304 of 318  40 City Council Protocols and Procedures Handbook PART II: CITY COUNCIL PROTOCOLS The citizens, businesses and organizations of the city are entitled to have fair, ethical and accountable local government, which has earned the public’s full confidence for integrity. To this end, the City Council has adopted Council Protocols and this Code of Ethics for members of the City Council to assure public confidence in the integrity of local government and its effective and fair operation. SECTION 1 – CITY COUNCIL CONDUCT 1.1 Positive Work Place Environment Members shall support the maintenance of a positive and constructive work place environment for City employees and for citizens and businesses dealing with the City. Members shall recognize their special role in dealings with City employees to in no way create the perception of inappropriate direction to staff. 1.2 Comply with Law Members shall comply with the laws of the nation, the State of California and the City in the performance of their public duties. These laws include but are not limited to: the United States and California constitutions, the city Charter, laws pertaining to conflicts of interest, election campaigns, financial disclosures, employer responsibilities and open processes of governments and City ordinances and policies. (a) Respect for Process Members shall perform their duties in accordance with the processes and rules of order established by the City Council governing the deliberation of public policy issues, meaningful involvement of the public and implementation of policy decisions of the City Council by City staff. 1.3 City Council Core Responsibilities (exist. Protocol Sec. 1) All members of the City Council, including those serving as Mayor and Vice Mayor, have equal votes. No Council Member has more power than any other Council Member, and all should be treated with equal respect. (a) All Council Members: 1) Demonstrate honesty and integrity in every action and statement 2) Comply with both the letter and spirit of the laws and policies affecting the operation of government. 3) Serve as a model of leadership and civility to the community 4) Inspire public confidence in Palo Alto government 5) Work for the common good, not personal interest 6) Prepare in advance of Council meetings and be familiar with issues on the agenda 7) Fully participate in City Council meetings and other public forums while demonstrating respect, kindness, consideration, and courtesy to others Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 43  Packet Pg. 305 of 318  41 City Council Protocols and Procedures Handbook 8) Do not politicize procedural matters such as minutes approval or agenda order for strategic purposes 9) Participate in scheduled activities to increase Council effectiveness 10) Review Council procedures, such as these Council Protocols, at least annually 11) Represent the City at ceremonial functions at the request of the Mayor 12) Be responsible for the highest standards of respect, civility and honesty in ensuring the effective maintenance of intergovernmental relations 13) Respect the proper roles of elected officials and City staff in ensuring open and effective government 14) Provide contact information to the City Clerk in case an emergency or urgent situation arises while the Council Member is out of town 1.4 General Member Conduct Councils are composed of individuals with a wide variety of backgrounds, personalities, values, opinions, and goals. Despite this diversity, all have chosen to serve in public office in order to improve the quality of life in the community. In all cases, this common goal should be acknowledged even as Council may "agree to disagree" on contentious issues. (a) Conduct of Members The professional and personal conduct of members must be above reproach and avoid even the appearance of impropriety. Members shall refrain from abusive conduct, personal charges or verbal attacks upon the character or motives of other members of the Council, boards and commissions, the staff or the public. Rude and unprofessional behavior are also unacceptable. Council members are expected to share factual information during meetings and within the public domain and Council members should refrain from repeating false and misleading information. (b)In Public Meetings 1) Use Formal Titles The Council should refer to one another formally during Council meetings as Mayor, Vice Mayor or Council Member followed by the individual’s last name. 2) Practice Civility and Decorum in Discussions and Debate Difficult questions, tough challenges to a particular point of view, and criticism of ideas and information are legitimate elements of a free democracy in action. Be respectful of diverse opinions. 3) Honor the Role of the Presiding Officer in Maintaining Order and Equity Respect the Chair's efforts to focus discussion on current agenda items. Objections to the Chair's actions should be voiced politely and with reason, following the parliamentary procedures outlined in the City Council Procedural Rules. 4) Demonstrate Effective Problem-Solving Approaches Council members have a public stage to show how individuals with disparate points of view can find common ground and seek a compromise that benefits the community as a whole. Council members are role models for residents, businesspeople and other stakeholders involved in public debate. Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 44  Packet Pg. 306 of 318  42 City Council Protocols and Procedures Handbook 5) Be Respectful of Other People's Time Stay focused and act efficiently during public meetings. (c) In Private Encounters 1) Treat Others as You Would Like to be Treated Ask yourself how you would like to be treated in similar circumstances, and then treat the other person that way. 1.5 Decisions Based on Merit Members shall base their decisions on the merits and substance of the matter at hand, rather than on unrelated considerations. 1.6 Advocacy (a) Representation of Private Interests In keeping with their role as stewards of the public interest, members of Council shall not appear on behalf of the private interests of third parties before the Council or any other board, commission or proceeding of the City, nor shall members of boards and commissions appear before their own bodies or before the Council on behalf of the private interests of third parties on matters related to the areas of service of their bodies. (b) Advocacy Members shall represent the official policies or positions of the City Council, board or commission to the best of their ability when designated as delegates for this purpose. When presenting their individual opinions and positions, members shall explicitly state they do not represent their body or the City, nor will they allow the inference that they do. (c) Council Voting Delegate Authority at Conferences / Annual Meetings The Council may authorize a Council member to act as the voting delegate at conferences or meetings of other bodies, including, but not limited to, the League of California Cities annual conference, National League of Cities conference, and the Association of Bay Area Governments (ABAG) annual meeting. Prior to the conference / meeting, the Council may provide the voting delegate with specific direction on proposed resolutions and other matters. When provided specific direction, the voting delegate’s authority is limited to matters on which the Council has directed the delegate to vote. In the absence of explicit direction, when the Council member is aware of a prior position the Council has taken, the Council member will adopt that position. (d) Be Cautious in Representing City Positions on Issues Before sending correspondence related to a legislative position, check with City staff to see if a position has already been determined. When corresponding with representatives of other governments or constituents remember to indicate, if appropriate, that the views you state are your own and may not represent those of the full Council. As a Council member, it is important to remember to indicate when the views you state are your own versus views which represent those of the full Council. This is relevant whether sending Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 45  Packet Pg. 307 of 318  43 City Council Protocols and Procedures Handbook correspondence related to a legislative position or corresponding with constituents or representatives of other governmental agencies or organizations. Council Members appointed to regional boards, commissions, or agencies shall stay informed of any positions adopted by Council relevant to the jurisdiction of the Board and shall consider such positions along with other pertinent information in carrying out their duties on the regional body. In the case where a Council member is speaking publicly on an issue on which Council has taken a position, and that Council member also serves on a regional body that has also taken a position, , the Council member should clearly state whether they are speaking on behalf of the City or the regional body. (e) Use of City Letterhead Official Mayor/City Council letterhead should only be used for correspondence signed by the Mayor or City Council members when specifically directed by the Council or consistent with prior City Council direction. This applies to the use of any stationery that could be interpreted as official letterhead. 1.7 Council Conduct with City Staff Governance of a City relies on the cooperative efforts of elected officials, who set policy, and City staff, which analyze problems and issues, make recommendations, and implement and administer the Council’s policies. Therefore, every effort should be made to be cooperative and show mutual respect for the contributions made by each individual for the good of the community. (a) Treat All Staff as Professionals Clear, honest communication that respects the abilities, experience, and dignity of each individual is expected. As with your Council colleagues, practice civility and decorum in all interactions with City staff. (b) Channel Communications through the Appropriate Senior City Staff Questions of City staff should be directed only to the City Manager, Assistant City Manager, City Attorney, City Clerk, Assistant City Clerk, City Auditor, Senior Assistant City Attorneys, or Department Heads. The Office of the City Manager should be copied on any request to Department Heads. Council members should not set up meetings with department staff directly, but work through Department Heads, who will attend any meetings with Council members. When in doubt about what staff contact is appropriate, Council members should ask the City Manager for direction. However, nothing in these protocols is intended to hinder the access Council-appointed liaisons (e.g. to the San Francisquito JPA or NCPA) may require in order to fulfill their unique responsibilities. (c) In order to Facilitate Open Government, All Council Members Should Make Decisions with the Same information from Staff on Agendized or Soon- to be- Agendized Items (Items on the Tentative Agenda or in a Council Committee) (d)Never Publicly Criticize an Individual Employee, Including Council Appointed Officers. Criticism is differentiated from questioning Facts or the opinion of staff. All critical comments about staff performance should only be made to the City Manager through private correspondence or Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 46  Packet Pg. 308 of 318  44 City Council Protocols and Procedures Handbook conversation. Comments about staff in the office of the City Attorney, City Auditor or City Clerk should be made directly to these CAOs through private correspondence or conversation. (e) Do Not Attend Staff Meetings Unless Requested by Staff Even if the Council member does not say anything, the Council member’s presence may imply support, show partiality, intimidate staff, or hampers staff’s ability to do its job objectively. (f) Depend upon the Staff to Respond to Citizen Concerns and Complaints It is the role of Council members to pass on concerns and complaints on behalf of their constituents. It is not, however, appropriate to pressure staff to solve a problem in a particular way. Refer citizen complaints to the appropriate senior staff member, according to the protocol on channeling communications. The senior staff member should respond according to the Policy and Procedure for Responding to Customer Complaints. Senior staff is responsible for making sure the Council Member knows how the complaint was resolved. (g) Do not Solicit Political Support from Staff The City Charter states that “Neither the city manager or any other person in the employment of the city shall take part in securing or shall contribute any money toward the nomination or election of any candidate for a municipal office.” In addition, some professionals (e.g., City Manager and the Assistant City Manager) have professional codes of ethics, which preclude politically partisan activities or activities that give the appearance of political partisanship. Council members shall refrain from coercing staff in making recommendations to the Council as a whole. (h) Use of Public Resources Council members shall not use public resources, such as City staff time, equipment, supplies or facilities, for private gain or personal purposes. 1.8 Use of Staff Time (a) Do Not Get Involved in Administrative Functions The key provisions on Council-staff relations found in section 2.04.170 of the Palo Alto Municipal Code: “Neither the council nor any of its committees or members shall direct, request or attempt to influence, either directly or indirectly, the appointment of any person to office or employment by the city manager or in any manner interfere with the city manager or prevent the city manager from exercising individual judgment in the appointment of officers and employees in the administrative service. Except for the purpose of inquiry, the council and its members shall deal with the administrative service solely through the city manager, and neither the council nor any member thereof shall give orders to any of the subordinates of the city manager, either publicly or privately.” (b) Respect the “One Hour” Rule for Staff Work Requests for staff support should be made to the appropriate senior staff member, according to the protocol for channeling communications. Any request, which would require more than one hour of staff time to research a problem or prepare a response, will need to be approved by the full council to ensure that staff resources are allocated in accordance with overall council priorities. Once Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 47  Packet Pg. 309 of 318  45 City Council Protocols and Procedures Handbook notified that a request for information or staff support would require more than one hour, the Council Member may request that the City Manager place the request on an upcoming Council agenda. The 1-hour rule applies to all Council members equally. ** * SECTION 2 - CITY COUNCIL CONDUCT WITH PALO ALTO BOARDS AND COMMISSIONS The City has established several Boards and Commissions as a means of gathering more community input. Citizens who serve on Boards and Commissions become more involved in government and serve as advisors to the City Council. They are a valuable resource to the City’s leadership and should be treated with appreciation and respect. Council members serve as liaisons to Boards and Commissions, according to appointments made by the Mayor, and in this role are expected to represent the full Council in providing guidance on Council processes or actions to the Board or Commission. Refrain from speaking for the full Council on matters for which the full council has not yet taken a policy position. In other instances, Council members may attend Board or Commission meetings as individuals, and should follow these protocols: 2.1 If Attending a Board or Commission Meeting, Identify Your Comments as Personal Views or Opinions. Council members may attend any Board or Commission meeting, which are always open to any member of the public. Any public comments by a Council Member at a Board or Commission meeting, when that Council Member is not the liaison to the Board or Commission should make a point to clearly state it is an individual opinion and not a representation of the feelings of the entire City Council. 2.2 Refrain from Lobbying Board and Commission Members It is inappropriate for a Council member to contact a Board or Commission member to lobby on behalf of an individual, business, or developer, or to advocate a particular policy perspective. It is acceptable for Council members to contact Board or Commission members in order to clarify a position taken by the Board or Commission. It is inappropriate for a Council member to contact a Board or Commission member to lobby on behalf of an individual, business, or developer, or to advocate a particular policy perspective. It is acceptable for Council members to contact Board or Commission members in order to better understand a position taken by the Board or Commission or the status of an ongoing matter. 2.3 Remember that Boards and Commissions are Advisory to the Council as a Whole, not as Individual Council Members The City Council appoints individuals to serve on Boards and Commissions, and it is the responsibility of Boards and Commissions to follow policy established by the Council. Council members should not feel they have the power or right to unduly influence Board and Commission members. A Board and Commission appointment should not be used as a political reward. 2.4 Concerns about an Individual Board or Commission Member Should be Pursued with Tact Commented [GC4]: PCity Council discussed on February 5, 2024 and provided next steps. Language to be updated to reflect Council motion. Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 48  Packet Pg. 310 of 318  46 City Council Protocols and Procedures Handbook If a Council member has concerns with a particular Board or Commission member fulfilling his or her roles and responsibilities and is comfortable in talking with that individual privately, the Council member should do so. If needed, the Councilmember may involve a Chair of a commission or the liaison to the commission if there is one. Alternatively, or if the problem is not resolved, the Council Mmember should consult with the Mayor, who may address the issue to the Council as appropriate. 2.5 Be Respectful of Diverse Opinions A primary role of Boards and Commissions is to represent many points of view in the community and to provide the Council with advice based on a full spectrum of concerns and perspectives. Council members may have a closer working relationship with some individuals serving on Boards and Commissions but must be fair to and respectful of all citizens serving on Boards and Commissions. 2.6 Keep Political Support Away from Public Forums Board and Commission members may offer political support to a Council member, but not in a public forum while conducting official duties. Conversely, Council members may support Board and Commission members who are running for office, but not in an official forum in their capacity as a Council member. 2.7 Maintain an Active Liaison Relationship Appointed Council liaisons or alternates are encouraged to attend all regularly scheduled meetings of their assigned Board or Commission. 2.8 Role of Council Liaison to Board or Commission The role of Council liaison to a Board or Commission is to share prior Council discussions and actions on issues as applicable and assist the Board or Commission in understanding likely Council perspectives on issues as well as how the Board or Commission might support Council decision- making. The role of Council liaison to a Board or Commission is to be a point of contact with Council and a resource to the Board and Commission, as well as to share prior Council discussions and actions on issues as applicable, and assist the Board or Commission in understanding how it might inform Council decision-making. The liaison is expected to attend Board or Commission meetings as requested by the body. ** * SECTION 3 - STAFF CONDUCT WITH CITY COUNCIL 3.1 Respond to Council Questions as Fully and as Expeditiously as is Practical The protocol for staff time devoted to research and response is in application here. If a Council Member forwards a complaint or service request to a department head or a Council Appointed Officer, there shall be follow-through with the Council Member as to the outcome. 3.2 Respect the Role of Council Members as Policy Makers for the City Staff is expected to provide its best professional recommendations on issues. Staff should not try to determine Council support for particular positions or recommendations in order to craft Commented [GC5]: City Council discussed on February 5, 2024 and provided next steps. Language to be updated to reflect Council motion. Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 49  Packet Pg. 311 of 318  47 City Council Protocols and Procedures Handbook recommendations. The Council must be able to depend upon the staff to make independent recommendations. Staff should provide information about alternatives to staff recommendations as appropriate, as well as pros and cons for staff recommendations and alternatives 3.3 Demonstrate Professionalism and Non-Partisanship in all Interactions with the Community and in Public Meetings 3.4 It is Important for the Staff to Demonstrate Respect for the Council at all Times All Council members Should be Treated Equally ** * SECTION 4 - CITY COUNCIL AND BOARDS AND COMMISSIONS POLICY FOR TRAVEL AND MISCELLANEOUS EXPENSE REIMBURSEMENT 4.1 Mayor and Vice Mayor Additional Compensation The Mayor shall receive $150 monthly and the Vice Mayor $100 monthly to defray additional expenses of these offices. 4.2 Miscellaneous Expenditures (a) Expenditure of City Council Contingency Funds Requests for expenditure of Council Contingency Funds up to $10,000 should be made to the Mayor and Vice Mayor. Where the Mayor and Vice Mayor agree with the request, it will be announced during Council Member Questions, Comments and Announcements. The expenditure will be considered approved unless two or more Council members request additional information or discussion, in which case the expenditure will be agendized at a future meeting. Expenditures over $10,000 require action by Council motions, which shall be by Colleagues Memo placed on Consent, or as part of an agendized item. (b) City Purchase of Tickets or Sponsorship of Non-Profit Organization Events The City Manager may purchase tickets or sponsor events by non-profit organizations, subject to budget availability, under any of the following circumstances: 1) where the event serves a City educational purpose, 2) recognition for work done by staff (not including elected or appointed officials), or 3) expending budget allocations specifically intended for event attendance. (c) Expenditure for Annual Holiday Event Expenditures of up to $1,500 from the Council Special Events budget may be directed to be expended from an annual holiday celebration, subject to budget availability for attendance by Council members, executive leadership staff, and community leaders. Event details will be coordinated by the Mayor and facilitated by staff. 4.3 Council and Boards and Commission Travel Policy Council member travel expenses and reimbursements will adhere to the Citywide Travel Arrangements and Expense Reimbursement Policy (Administrative Policy 1-02/ASD) Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 50  Packet Pg. 312 of 318  48 City Council Protocols and Procedures Handbook This The following additional policy is set by the City Council and applies to Council members and to Board and Commissions members. In reimbursing travel and miscellaneous expenses, a municipal purpose requiring the expenditure of public funds must be in evidence; also, in accordance with the Charter and Municipal Code, such expenditures must be from authorized appropriations. Council members are limited to six (6) times per year for travel reimbursements, subject to budget availability. Council member travel will be approved by the Mayor. (a)Travel Related to Sister Cities, Sibling City, or shared interests with another city abroad 1) Given the City’s relationship with many Sister Cities and a Sibling City, there may be a need to send a Palo Alto delegation to another city abroad or within the United States related to Sister Cities, Sibling City, or shared interests between Palo Alto and another city abroad. The following will apply when a Council member travels abroad or domestically on behalf of the City as part of Sister City, Sibling City, or shared interests efforts. Note, such a trip would count towards the six (6) total tips cap described above. The proposed travel must include an approved Pre-Travel Authorization Request for travel that explains how the travel will advance the City's interests or policy/Council objectives and a consideration of the cost/value relationship of the trip. The request should also explain why virtual attendance is not effective in that circumstance. The Council will be responsible for ensuring that visits to any individual city will be reasonably spaced apart. The Pre-Travel Authorization Request will be approved by the Mayor. If the Mayor is the requested traveler, the request will be approved by the Vice Mayor. 2) Annually, the total amount the City Council will budget for international and domestic travel related to Sister Cities, Sibling City, or shared interests between Palo Alto and another city abroad will be capped at $40,000 with reasonable annual adjustments beyond 2024 to account for inflation. This funding will be distributed equitably amongst Council members who meet the guidelines above and express an interest to travel. (b)Support Services The City Clerk’s Office makes travel arrangements for Council members. This service includes conference registration, hotel reservations, per diem advances and reimbursement of unforeseen expenses. The department liaison for each board and commission will be responsible for arrangements for Officials. (c) Activities Not Considered Reimbursable 1) Voluntary attendance at any conference or meeting, not representing the City. A) Meetings of social or service organizations. 2) Meetings of voter groups or with individual citizens concerned with agenda items. 3) Election campaign activities. 4) Alcohol and entertainment expenses. Commented [GC6]: City Council discussed on February 5, 2024 and provided next steps. Language to be updated to reflect Council motion. Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 51  Packet Pg. 313 of 318  49 City Council Protocols and Procedures Handbook 5)Personal portion of the trip and other non-mileage automobile expenses. (d) Reports to Council Council members and officials shall provide brief verbal reports on meetings attended at the City’s expense at the next regular Council/Board/Commission meeting. If multiple Officials attended, a joint report may be made. All related documents are subject to the Public Records Act and can be periodically reviewed by auditors. (e) Violation of This Policy Use of public resources or falsifying expense reports is in violation of this policy and may result in any or all of the following: 1) Loss of reimbursement privileges 2) A demand for restitution to the City 3) The City reporting the expenses as income to the elected or appointed Official to state and federal tax authorities 4) Civil penalties of up to $1000 per day and three times the value of the resources used 5) Prosecution for misuse of public resources ** * SECTION 5 - Confidentiality, Conflicts of Interest, Gifts And Favors Members shall respect the confidentiality of information concerning the property, personnel or affairs of the City. They shall neither disclose confidential information without proper legal authorization, nor use such information to advance their personal, financial or other private interests. There are many State laws regarding confidentiality, conflicts of Interest, and gifts and favors. Council members should stay apprised of and comply with State law on these topics. Resource Links to be added here. Item 15 Attachment A - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 15: Staff Report Pg. 52  Packet Pg. 314 of 318  City Council Staff Report Report Type: ACTION ITEMS From: City Clerk Meeting Date: February 26, 2024 Report #:2401-2572 TITLE Discussion on the 2024 Boards and Commissions Recruitment. CEQA Status - Not a Project. RECOMMENDATION Discuss and provide direction for conducting interviews for scheduled vacancies on the Architectural Review Board, Historic Resources Board, Human Relations Commission, Public Art Commission, Planning and Transportation Commission, Stormwater Management Oversight Committee, and Utilities Advisory Commission. BACKGROUND In 2021 the City Council passed Ordinance 55291 and Resolution 99692 to establish term limits and consolidate the appointment of members to boards and commissions. In 2023 the City Clerk’s Office conducted the first consolidated recruitment for 16 scheduled vacancies on various Boards and Commissions and received a record 56 applications during that recruitment period. The 2024 Boards and Commissions Recruitment is ongoing and will close on March 17th, 2024. The City Council will select candidates to be interviewed for: •Two (2) positions on the Architectural Review Board with terms ending 3/31/2027. •Four (4) positions on the Historic Resources Board with terms ending 3/31/2027. •Two (2) positions on the Human Relations Commission with terms ending 3/31/2027. •Four (4) positions on the Public Art Commission with two terms ending 3/31/2027 and two partial terms ending 3/31/2026. •One (1) position on the Planning and Transportation Commission with term ending 3/31/2028. 1 Ordinance 5529: https://www.cityofpaloalto.org/files/assets/public/city-clerk/ordinances/ordinances-1909-to- present/2021/ord-5529.pdf 2 Resolution 9969: https://www.cityofpaloalto.org/files/assets/public/city-clerk/resolutions/resolutions-1909-to- present/2021/reso-9969.pdf Item 16 Item 16 Staff Report        Item 16: Staff Report Pg. 1  Packet Pg. 315 of 318  •Thee (3) positions on the Stormwater Management Oversight Committee with term ending 3/31/2028. •Two (2) positions on the Utilities Advisory Commissions with term ending 3/31/2027. During the last several recruitments prior to 2023, the City Council elected to interview all qualified applicants for respective Boards and Commissions. In 2023, the City Council allowed each Council Member a limited number of votes to select applicants to interview as listed below: •Historic Resources Board – 3 openings, 3 applicants, Interview all •Human Relations Commission – 2 openings, 5 applicants, Interview all •Parks and Recreation Commission – 4 openings, 18 applicants, 6 votes each •Planning and Transportation Commission – 3 openings, 11 applicants, 5 votes each •Utilities Advisory Commission – 4 openings, 18 applicants, 6 votes each It is at the discretion of the City Council to determine how to proceed with the 2024 Boards and Commissions interviews. Membership Requirements Each Board or Commission has different requirements for appointment such as mandatory residency, specialized training, or professional service in a specified area. For each of the Board or Commission with current vacancies, the requirements are listed below. Additionally, appointed members cannot be council members, officers or employees of the City of Palo Alto. Architectural Review Board •At least three members shall be architects, landscape architects, building designers or other design professionals. (PAMC 2.21.010) Historic Resources Board: •Demonstrated interest in and knowledge of history, architecture or historic preservation. (PAMC 2.27.010) •One member shall be an owner/occupant of a category 1 or 2 historic structure, or of a structure in a historic district. (PAMC 2.27.010) •Three members shall be architects, landscape architects, building designers or other design professionals. (PAMC 2.27.010) •At least one member shall possess academic education or practical experience in history or a related field. (PAMC 2.27.010) Public Art Commission •Each member of the Commission shall either be members of the Architectural Review Board or shall be professional visual artists, professional visual arts educators, professional visual arts scholars, or visual arts collectors whose authorities and skills are Item 16 Item 16 Staff Report        Item 16: Staff Report Pg. 2  Packet Pg. 316 of 318  known and respected in the community and, whenever feasible, who have demonstrated an interest in, and have participated in, the arts program of the city. (PAMC 2.18.020) Planning and Transportation Commission •Palo Alto residency. (PAMC 2.20.010) Stormwater Management Oversight Committee •Each member shall be a resident of Palo Alto, an employee of a business located in Palo Alto, or an owner of a real property within the City. (Resolution 9969) Utilities Advisory Commission: •Each member of the commission shall be a utility customer or the authorized representative of a utility customer. (PAMC 2.23.010) •Palo Alto Residency for at least six members of the commission. (PAMC 2.23.010) ANALYSIS Suggested options to vet the candidates as well as effective use of Council’s time include, but are not limited to, the following: •Allow Council Members a limited number of votes to select their preferred candidates to interview. The City Council can decide the threshold for candidates to be advanced to the interview stage. •Allow all applicants to record their initial interview via the City’s HireVue platform or other video interview platform. Council Members can watch the interviews online and select which candidates to bring in for a final in-person interview or make appointments based on the recorded video interviews. •Appoint an Ad Hoc Committee to conduct interviews with recommendations being made to the full Council for appointment. Interviews can be recorded and provided to the full Council prior to voting. •Hold a series of special meetings over the next two months to interview all selected applicants prioritizing Boards that may have issues with obtaining a quorum for their next meetings. The process Council decides to select must be done in compliance with the Brown Act. If HireVue or recorded interviews with an Ad Hoc is selected, interview recordings will be made available to the public. The Boards and Commissions Handbook states that Chair and Vice Chair elections shall be conducted at the beginning of the year and the workplan shall be transmitted to City Council by the second quarter of the calendar year. City Council may, at your discretion, modify those Item 16 Item 16 Staff Report        Item 16: Staff Report Pg. 3  Packet Pg. 317 of 318  deadlines to help facilitate Chair and Vice Chair elections allowing greater visibility on which incumbent Commissioners will be reappointed and to allow new Commissioners to participate in the crafting of the workplan for the year. FISCAL/RESOURCE IMPACT STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW APPROVED BY: Item 16 Item 16 Staff Report        Item 16: Staff Report Pg. 4  Packet Pg. 318 of 318