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2012-03-12 City Council Agenda Packet
CITY OF PALO ALTO CITY COUNCIL Special Meeting Council Chambers March 12, 2012 5:30 PM Agenda posted according to PAMC Section 2.04.070. Supporting materials are available in the Council Chambers on the Thursday preceding the meeting. 1 March 12, 2012 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Call to Order Closed Session Public Comments: Members of the public may speak to the Closed Session item(s); three minutes per speaker. 1. CONFERENCE WITH LABOR NEGOTIATORS City Designated Representatives: City Manager and his designees pursuant to Merit System Rules and Regulations (James Keene, Pamela Antil, Dennis Burns, Lalo Perez, Joe Saccio, Sandra Blanch, Marcie Scott, Darrell Murray) Employee Organization: Palo Alto Police Manager’s Association (PAPMA) Authority: Government Code Section 54957.6(a) 2. CONFERENCE WITH CITY ATTORNEY -- EXISTING LITIGATION Subject: Charlot v. City of Palo Alto, Santa Clara County Superior Court, Case No. 110-CV-178617 Subject Authority: Government Code section 54956.9(a) Special Orders of the Day 3. Community Presentation by Neighbors Abroad 4. Proclamation Welcoming the Tsuchiura Exchange Students 5. Proclamation Honoring the 100th Anniversary of Girl Scouts USA City Manager Comments 2 March 12, 2012 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Minutes Approval November 28, 2011 Oral Communications Members of the public may speak to any item not on the agenda; three minutes per speaker. Council reserves the right to limit the duration of Oral Communications period to 30 minutes. Consent Calendar Items will be voted on in one motion unless removed from the calendar by two Council Members. 6. Approval of Amendment Number 2 to the OPOWER Contract with the City of Palo Alto to add Website Portal and Related Web-based Services at no Cost in Addition to the Home Energy Reports 7. Request to Cancel City Council Meeting of April 2, 2012 and Call a Special Council Meeting on April 23, 2012 8. Approval of a Three Year Wastewater Enterprise Fund Contract with Casey Construction, Inc., in an Amount Not to Exceed $2,070,505 for Wastewater Collection System Maintenance Services 9. Recommendation by the CAO Committee to the City Council to Approve the Contract with Sherry Lund Associates for the Amount Not To Exceed $35,050 to Complete the Four CAO Evaluations for the 2011-2012 Performance Review Cycle. 10.Approval of Change Order Fifteen in the Amount of $278,710 to Flintco Construction for the Mitchell Park Library and Community Center Project Agenda Changes, Additions and Deletions HEARINGS REQUIRED BY LAW: Applications and/or appellants may have up to ten minutes at the outset of the public discussion to make their remarks and put up to three minutes for concluding remarks after other members of the public have spoken. OTHER AGENDA ITEMS: Public comments or testimony on agenda items other than Oral Communications shall be limited to a maximum of three minutes per speaker. 3 March 12, 2012 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Action Items Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials, Unfinished Business and Council Matters. 11. Public Hearing: Consideration of the Proposed Lytton Gateway Planned Community (PC), including: (1) Approval of a Mitigated Negative Declaration, (2) Adoption of a PC Ordinance Amending the Zoning Map of the City Of Palo Alto to Change the Zone Designations of 355 and 335 Alma, currently CDC-P and CDN-P to Allow a Mixed Use, Five-Story, 64- foot Tall Building (and an 84’ Corner Tower Feature) on the former Shell Station Site, including Two Concessions under State Density Bonus Law (Building Height and Daylight Plane), and (3) Approval of a Resolution Amending the Comprehensive Plan Designation for a Portion of the Site (335 Alma) to Regional/Community Commercial (from Neighborhood Commercial), for the Project Located at 355 and 335 Alma Street. * Quasi-Judicial. 12.Approval Of Final Park Design for El Camino Park And Approval Of The Use Of $2,275,796 In Park Development Impact Fees To Fund The Design And Construction Of The Improvements 13.Consideration of a Recommendation by the CAO Committee to the City Council to Approve a Contract with Sherry Lund Associates for the Amount of Not to Exceed $6,000 to Secure Additional Input from the Direct Reports to the Four CAO’s Performance Reviews. Council Member Questions, Comments and Announcements Members of the public may not speak to the item(s) Adjournment AMERICANS WITH DISABILITY ACT (ADA) Persons with disabilities who require auxiliary aids or services in using City facilities, services or programs or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact (650) 329-2550 (Voice) 24 hours in advance. PUBLIC COMMENT Members of the Public are entitled to directly address the City Council/Committee concerning any item that is described in the notice of this meeting, before or during consideration of that item. If you wish to address the Council/Committee on any issue that is on this agenda, please complete a speaker request card located on the table at the entrance to the Council Chambers, and deliver it to the City Clerk prior to discussion of the item. You are not required to give your name on the speaker card in order to speak to the Council/Committee, but it is very helpful. 4 March 12, 2012 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Additional Information Supplemental Information Standing Committee Meetings Policy and Services Committee Packet City School Committee Packet City Council Rail Committee Packet Regional Housing Mandate Committee Packet Schedule of Meetings Schedule of Meetings Tentative Agenda Tentative Agenda Informational Report Report of City Manager Action Pursuant to the City's Water Contract with San Francisco on the Initiation of a Review of the Fiscal Year 2008‐09 Audit of the Suburban Revenue Requirement Advance Copy of the First Amendment to the Final Environmental Impact Report for the Edgewood Plaza Planned Community Zoning and Tentative Map Application, February 2012 Public Letters to Council City of Palo Alto (ID # 2630) City Council Staff Report Meeting Date: 3/12/2012 Report Type: Special Orders of the Day City of Palo Alto Page 1 Title: Proclamation Welcoming the Tsuchiura Exchange Students From: City Manager Lead Department: City Clerk Please see attached proclamation. Attachments: • Attachment4.a: Tsuchiura City Proclamation 4 Packet Pg. 6 CITY OF PALO ALTO PRO C LAMATIO·N WELCOMING EXCHANGE STUDENTS AND CHAPERONES FROM TSUCHIURA CITY, IBARAKI, JAPAN WHEREAS, the exchange program between middle schools is the foundation of the Sister City program, whi~h attempts to promote international and intercultural understanding amongst the youth; and WHEREAS, the two cities have worked together to involve their respective middle school students and their families in cultural and educational exchanges and special programs; and WHEREAS, the opportunity to host Tsuchiura students here and to send Palo Alto students to Tsuchiura, Japan has proven to be mutually beneficial. NOW, THEREFORE, I~ Yiaway Yeh, Mayor of the City of Palo Alto, on behalf of the City Council, hereby express our heartfelt welcome and record congratulations and the best wishes from the City of Palo Alto, on the occasion of the visit of Ms. Manami Wada, Mr. Masato Suzuki and 16 students (Mako Miyamoto, Honami Abiko, Naoto Takahashi, Keita Tsukamoto, Ayato Ikeda, Ryoko Kojima, Chika Sasajima, Momoka Tamura, Masataka Chiba, Suzu, Torii, Miyu Suda, Sakiko Ohnuma, Tomoaki Tanaka, Niko Uchida, Ryosuke Yoshida and Mizuki Sasamori). I wish to thank Tsuchiura City for their generosity and hospitality tended toward young people froIp. Palo Alto for the last 19 years. Presented: March 12,2012 fgio 1'- ayor 4.a Packet Pg. 7 City of Palo Alto (ID # 2629) City Council Staff Report Meeting Date: 3/12/2012 Report Type: Special Orders of the Day City of Palo Alto Page 1 Title: Proclamation Honoring the 100th Anniversary of Girl Scouts USA From: City Manager Lead Department: City Clerk Please see attached proclamation. Attachments: • Attachment5.a: Girl Scout Proclamation 5 Packet Pg. 8 CITY OF PALO ALTO PROCLAMATION 100TH ANNIVERSARY OF GIRL SCOUTS USA WHEREAS, March 12, 2012 marks the 100th anniversary of Girl Scouts of the USA, founded by Juliette Gordon Low in 1912 in Savannah, Georgia; and WHEREAS, since this first meeting more than 50 million girls have participated in the Girl Scout movement during their childhood and that number continues to grow as Girl Scouts of the USA continues to inspire, challenge, and empower girls everywhere; and WHEREAS, through its membership in the World Association of Girl Guides and Girl Scouts (WAGGGS), Girl Scouts of the USA is part of a worldwide family of 10 million girls and adults in 145 countries; and WHEREAS, Girl Scouts is the largest, longest running and most effective leadership program for girls in not only our nation, but the world; and WHEREAS, Girl Scouting takes an active role in increasing girls’ awareness of the opportunities available to them today in math, science, sports, technology, health, and all fields that can expand their horizons; and WHEREAS, more than 47,000 girls and 32,000 adult members in Northern California, along with 3.2 million Girl Scout members nationwide will be celebrating 100 years of this American tradition of developing girls of Courage, Confidence and Character who make the world a better place. NOW, THEREFORE, I, Yiaway Yeh, Mayor of the City of Palo Alto, on behalf of the City Council do hereby applaud the commitment Girl Scouts has made to America’s girls and proudly declare the week of March 11, 2012 Girl Scout Week in Palo Alto. Presented: March 12, 2012 _________________________ Yiawey Yeh Mayor 5.a Packet Pg. 9 City of Palo Alto (ID # 2514) City Council Staff Report Meeting Date: 3/12/2012 Report Type: Consent Calendar City of Palo Alto Page 1 Title: Approval of Amendment Number 2 to the OPOWER Contract with the City of Palo Alto to add Website Portal and Related Web-based Services at no Cost in Addition to the Home Energy Reports Council Priority: Climate Change: Protection & Adaption From: City Manager Lead Department: Utilities Recommendation Staff recommends that the Council approve and authorize the City Manager or his designee to execute the attached Second Amendment to Contract with OPOWER, Inc. (OPOWER) to allow Palo Alto participants in the Home Energy Report program (HERs) to participate in the new Social Energy Application. Executive Summary The HERs created by OPOWER were launched in November 2011. These reports save all residential customers about 2.5% of electric use and 2% of natural gas usage, as confirmed by a third party evaluator. OPOWER recently developed a new “add-on,” which the City would like to implement. Residents who wish to compare their historic energy data with “friends” on Facebook may request that their energy data be downloaded to their personal Facebook page. As with other Facebook user tools, customers may only participate if they opt-in to the program. In addition, users will only be able to view their own energy use, but aggregate comparisons will be made available from the user to his or her Facebook “friends” who are also participating in the HERs program, whether or not those friends are in Palo Alto. This additional service to customers will be provided by OPOWER at no cost to the City, and are expected to result in additional energy savings. Background In April 2010, Council approved a contract with OPOWER to deliver HERs to residential customers (CMR 191:10). In November 2010, nearly 19,000 residential customers began receiving the reports. On December 12, 2011, the Council approved Amendment No. One to Contract to extend the program beyond the original 10 bi-monthly reports (Staff Report #2281). As reported in the annual Demand Side Management report on all water and energy efficiency 6 Packet Pg. 41 City of Palo Alto Page 2 and conservation programs, (Staff Report #2346) for the first six months of the program in Fiscal Year (FY) 2011, the HERs provided about 420,000 kilowatt hours (kWhs) of electric savings and 92,639 therms in savings (or about 44% of the total natural gas saved by all customers), even though the program was only in operation about seven months of the fiscal year. Based on this analysis and further evaluation, the City’s outside third-party evaluator, Navigant Consulting (Navigant), additional gas and electricity savings are projected to remain in the 2% range for FY 2012. Discussion The OPOWER generated HERs continue to provide significant levels of electric and natural gas efficiency savings, with a very low level of customer concerns and complaints. The majority of comments in the past few months have been from those customers who do not receive the reports and wish to do so.1 As shown in the graph below, “opt-out” requests are at less than one percent in the first year of program operation. 0.0% 0.1% 0.2% 0.3% 0.4% 0.5% 0.6% 0.7% 0.8% 0.9% 0 5 10 15 20 25 30 35 Nov. 2010 Dec. 2010 Jan. 2011 Feb. 2011 Mar. 2011 Apr. 2011 May 2011 Jun. 2011 Jul. 2011 Aug. 2011 Sep. 2011 Oct. 2011 Nov. 2011 % o f T r e a t m e n t H o u s e h o l d s th a t h a v e O p t e d O u t Nu m b e r o f N e w O p t -Ou t s # of New Opt-Outs Cumulative % of Opt-Outs Figure 1: Navigant Consulting: Home Energy Report Draft Report; January 31, 2012 Savings From the Program In preliminary savings estimates by OPOWER at the end of the first six months of operation during FY 2011, electric savings were 2.5% of all program recipients’ electric usage and 2% of natural gas usage. Navigant has been engaged to complete an Evaluation, Measurement & Verification (EM&V) report of the City of Palo Alto Utilities’ (CPAU) efficiency program results. In a preliminary report, Navigant found the total estimated annual energy savings were slightly lower than 2.5% overall for electric customers, but still quite high. Navigant recommends that the HERs program continue for another fiscal year. Program savings are rising, and continuing the program for another year will allow for examination of the persistence of program effects. 1 New customers with no usage history and customers with solar systems do not receive the HER. 6 Packet Pg. 42 City of Palo Alto Page 3 Navigant estimated that gas savings from the HERs program for the first twelve months of operation, including six months in FY 2011 and FY 2012, were 1,635,000 kWh and 1,750,000 therms. These savings estimates are slightly below savings from similar programs around the country in the first year of the program. This is not surprising, as CPAU’s HERs program was developed to provide reports to nearly all residential customers to allow both for sufficient numbers in the reporting program and to provide equity to all customers. Other, larger utilities typically target customers with high energy consumption in their HERs programs. Figure 2 shows savings as a percentage and in kilowatt hours and therms units -. -0.5% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% Winter 2010- 2011 Spring 2011 Summer 2011 Fall 2011 Es t i m a t e d S a v i n g s Electric Gas -1 0 1 2 3 4 5 6 7 -10 0 10 20 30 40 50 60 70 Winter 2010-2011 Spring 2011 Summer 2011 Fall 2011 Es t i m a t e d S a v i n g s ( t h m ) Es t i m a t e d S a v i n g s ( k W h ) Electric Gas Figure 2: Navigant Consulting: Home Energy Report Draft Report; January 31, 2012. Electric savings are in kWh and Gas savings are in therms. Average electricity savings were 1.88% for customers who were in the high consumption group, 2.11% for customers who were in the medium consumption group, and 0.52% for customers who were in the low consumption group. Gas savings were 2.71%, 0.93%, and 2.29%, respectively. In absolute terms, customers in the high consumption group contributed about twice as much electric savings as those in the medium and low groups and roughly twice as much gas savings as shown in Figure 3. 6 Packet Pg. 43 City of Palo Alto Page 4 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% High Medium Low Es t i m a t e d S a v i n g s Electric Gas 0 6 12 18 24 30 0 50 100 150 200 250 High Medium Low Es t i m a t e d S a v i n g s ( t h m ) Es t i m a t e d S a v i n g s ( k W h ) Electric Gas Figure 3: Navigant Consulting: Home Energy Report Draft Report; January 31, 2012 Facebook Application or Service To further extend the positive effect of “competition” on reducing energy use, OPOWER worked with Facebook to set up groups of “friends” for energy comparisons based on historic usage; this would allow further competition and assessment of a resident’s energy use. Most Facebook members who participate in this application (app) will have to manually enter their utility usage data into the comparison tool. For those who are served by utilities that have agreed to work with OPOWER on this program, customers can request that the usage data be transferred directly into the Facebook app. Customers will have to actively opt-in to participate in the Facebook app. The Facebook app will allow a participant to see his or her own energy use and compare it with the average usage for “friends” who are also participating in the program. Those who request that OPOWER complete this transfer will have to acknowledge that their utility data is being securely transferred to an outside server for use in the service and release the City and OPOWER of liability for data transfer. The actual language of these approved “Terms and Conditions” is attached as Exhibit “D” to Amendment No. Two to Contract. 6 Packet Pg. 44 City of Palo Alto Page 5 The development of this service will be in “Beta test” or trial stage in the second and third quarter of 2012. The service will be provided at no cost to both CPAU and its customers during the term of Amendment No. Two to Contract. Based on social science experiments and studies, both OPOWER and staff expect that those who elect to participate in this Facebook feature will have greater understanding about their utility usage and much higher conservation results than nonparticipants. However, since this is a new and innovative program, actual results are difficult to forecast. OPOWER will review the results of the “Beta test” program and provide updates to CPAU. Timeline The application is planned to be launched to City residents in May or June 2012, but the timeline and parameters for product launch are still subject to change. OPOWER anticipates the Beta test period will last through September 2012 and will end when the initial set of Beta test features are thoroughly tested, verified and integrated. Resource Impact There will be no costs to the City by OPOWER providing this service. In addition, all work to securely transfer customer data is already being completed by the City. Policy Implications The proposed Amendment Number Two to Contract supports the Council-approved Utilities Strategic Plan, Gas Utility Long-Term Plan, the Ten-year Energy Efficiency Portfolio Plan, the Ten-Year Gas Efficiency goals, the Long-term Electric Acquisition Plan, and Comprehensive Plan Goal N-9. Implementation of efficiency programs support greenhouse gas reduction goals identified in the Palo Alto Climate Protection Plan. Environmental Review The approval of Amendment Number Two does not meet the definition of a “project” under Public Resources Code Section 21065 of the California Environmental Quality Act (CEQA); thus, no environmental review is necessary. Attachments: • Attachment6.a: Attachment A: Amendment Number 2 to OPOWER Agreement • Attachment6.b: Attachment B: Amendment Number 1 to OPOWER Agreement • Attachment6.c: Attachment C: Agreement with OPOWER 6 Packet Pg. 45 AMENDMENT NO. TWO TO CONTRACT #C1013431 BETWEEN THE CITY OF PALO ALTO AND OPOWER, INC.FOR DELIVERY OF THE SOCIAL ENERGY APPLICATION This Amendment No. Two (the “Second Amendment”) to Contract No.C1013431, dated as of ______________, 2012, is entered into by the City of Palo Alto, a charter city and a municipal corporation of the State of California (the “City”) and Opower, Inc., a Delaware corporation, located at 1515 North Courthouse Road, Suite 610, Arlington, VA 22201 (“Opower”) (individually, a “Party” and, collectively, the “Parties”). RECITALS: A. On May 3, 2010, the City and Opower, Inc. entered into an agreement entitled “City of Palo Alto Contract No. C1013431, Agreement Between the City of Palo Alto and Opower, Inc. for Professional Services Home Energy Reports”, as amended, (the “Contract”), in which Opower agrees to provide Home Energy Reports, a Home Energy Website Portal and related Web-based services to residents of the City. B. Opower has developed a Social Energy Application (the “Application”), which would allow the City’s electric utility customers to view their energy usage history and to compare certain information about their energy usage to other individuals’ energy usage, which individuals are Facebook friends. C. The City desires to make the Application available to certain of its electric utility customers. NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Second Amendment, the Parties agree: AGREEMENT: SECTION 1. SCOPE OF SERVICES. The Scope of Services (described in Exhibit “A” of the Contract) shall be amended to include the additional services, more fully described in Exhibit “A-2”, entitled “Statement of Work for the Social Energy Application”. SECTION 2. TERM. Section 2 of the Contract shall be amended to include the additional items, more fully described in Exhibit “B-2”, entitled “Schedule of Performance for the Social Energy Application.” SECTION 3. NOT TO EXCEED COMPENSATION. 120222 dm 00710011 6.a Packet Pg. 46 120222 dm 00710011 Exhibit “C-2”, entitled “Compensation for the Social Energy Application” is hereby incorporated into the Contract, and shall be attached to the existing Exhibit “C“ “Compensation”. SECTION 4. All of the terms and conditions of the Contract that are not modified by this Second Amendment shall remain in full force and effect. IN WITNESS WHEREOF, the Parties have duly executed this Second Amendment as of the day and year set forth above. CITY OF PALO ALTO OPOWER, INC. BY: City Manager By: APPROVED AS TO FORM: Senior Asst. City Attorney Name: Title: 6.a Packet Pg. 47 EXHIBIT “A-2” STATEMENT OF WORK FOR THE SOCIAL ENERGY APPLICATION 1. Introduction The purpose of this Statement of Work is to define the working relationship between the Parties for the purposes of the Application. 1.1 Product Overview a. The Application is a web-based social media platform designed to engage individuals in their energy use. b. The Application is hosted by Opower. An individual who chooses to use the Application, which is accessible by the internet (the “User”) must visit Opower’s website and then login via the Facebook Connect. Facebook Connect does not interact with any Opower communication channels related to the Home Energy Reporting Program. c. As a component of the Application, the City affords access to a User to import his or her utility usage and billing information into the Application (the “Utility Data Connect”). A User must first verify ownership of his or her utility account before he or she can import the usage and billing information. d. If a User is unable to successfully utilize the Utility Data Connect, he or she will have the option to manually enter his or her utility usage and billing information. A failure to successfully connect may be caused by (a) the User’s inability to confirm his or her account name and account number, and (b) Opower does not have the User’s data stored in its systems. 2. Work to be performed 2.1 Application configuration a. Opower will configure the Application for the City as a software-as-a- service. The Application will utilize energy usage (monthly and/or automated meter information) data extracts that the City’s Utilities Department (the “Utility” acting by its division, the Utility Marketing Services or “UMS”) provides to Opower under the Contract in order for Opower to populate the Utility Data Connect feature. 120222 dm 00710011 6.a Packet Pg. 48 Opower will perform all work necessary to implement the Utility Data Connect, including data import, storage, and access. Except as set forth in the following bullet point, no additional work by the Utility is needed or required. If the Utility is not currently providing Opower with comprehensive data extracts in accordance with the Contract, the Parties will develop the scope of the additional work required to ensure Opower is receiving energy usage data for all Utility residential customers, who intend to participate in the Application. Such additional work may require the Utility and/or Opower to incur additional costs, as may be agreed by the Parties. b. The Application will be “co-branded” with the Utility’s brand and the choice of branding will be made by Opower acting in the reasonable exercise of its discretion. c. The City acknowledges that its brand and its placement and size are restricted by the existing architecture of the Application and thus cannot be customized to the Application. 2.2 Customer education and recruitment a. Opower will support UMS staff’s efforts, if any, to educate the electric utility customers about the Application and encourage sign-ups. This may include Opower’s recommended marketing messages and outreach methodologies as well as industry-level marketing, and Opower will be responsible for the contents of those messages and methodologies. b. Marketing campaigns that utilize Opower channels may incur additional cost to the Utility, to be agreed by the Parties. 2.3 Customer support a. Opower will: Configure a frequently asked questions (“FAQ”) knowledge base that a User can access within the Application. Support inbound User questions related to the Application and the Utility Data Connect functionality via User support and feedback system (which may be subcontracted to a third party, provided that no personally identifiable information regarding Users is transmitted from Opower to such third party without the express written permission of the User and provision of prior notice to the City). Support inbound questions to UMS account representatives related to the Application and the Utility Data Connect functionality. Train UMS account representatives via teleconference call on key aspects of the Application. 120222 dm 00710011 6.a Packet Pg. 49 b. UMS account representatives will provide support for inbound customer inquiries to the Utility through phone, email and other means. 2.4 Reporting a. Opower will provide the Utility with information on customer engagement with the Application, such as accounts created and website activity, up to four times annually in an electronic format. 4. Data Privacy and Security 4.1 Privacy a. There are two levels of possible participation in the Application; Opower warrants that at each level, Opower will ensure that customer data will be kept confidential and private, and that opt-out rights are assured. In all cases, Opower will ensure that a customer’s written consent is obtained before data regarding the customer’s energy usage and/or other personal information will be displayed to the public. Level 1: The User affirmatively opts-in to display his or her energy data to other Users, who have provided the same consent, through the Application. This level will allow Opower to display data available via the Opower Customer Web Portal through the Application. Customer data are stored in Opower’s servers, not in Facebook’s servers. Opower’s Terms of Use and Privacy Policy, which are attached to this Contract as Exhibit “D”, shall apply, and Opower shall provide the City with the current Terms of Use and Privacy Policy at all times during the Term of this Contract. Level 2: The User affirmatively opts-in to (i) display his or her energy data to other Users through the Application, and (ii) post content to the User’s Facebook account. Opower represents that data that are posted to the User’s Facebook Wall are stored in Facebook’s servers. Facebook’s Terms of Use and Privacy Policies apply. Opower does not assume any liability with respect to data that the Users voluntarily post to their Facebook pages, and Opower shall disclose such limitation of liability to any User before that User can check the box and use the Application. b. Data may be shared between consenting Users whenever the following criteria are met: Each User has individually opted-in to use the Application. Users are "friends" on Facebook. 120222 dm 00710011 6.a Packet Pg. 50 4.2 Security a. With respect to Level 1 usage, all of the Application data are stored on Opower’s servers in a manner consistent with the data security provisions in the Nondisclosure Agreement executed by the Parties. Except with respect to transfers of data to Facebook (which will be affirmatively consented-to by the User), Opower represents and warrants that the use of the Application will not automatically facilitate or result in the additional transfer of energy usage data or personal information. b. With respect to Level 2 usage, any data posted to Facebook are stored at Facebook’s servers. As referenced above, such transfer of data requires the affirmative consent of the User. 4.3 Consent of City’s Utility Customers a. Before any Utility customer will be permitted to use the Application to automatically provide access to the User’s name, home address, utility usage data or similar data that is protected from disclosure under applicable law (including any protections afforded by the California Constitution, Article 1, Section 3 and the California Public Records Act, , in particular, California Government Code § 6254.16), Opower shall obtain from such Utility customer his or her express written consent to the disclosure of such data to third parties and a waiver and release of liability of the City and Opower with respect to such disclosure. b. The consent described in Section 4.3(a) may be obtained through the affirmative acceptance of the following: (1) A consent and information box referencing information that is clear and understandable to the User, which will contain information similar to the following: “By clicking login/accept, you consent to the display of your name and energy usage data to your Facebook friends who use the Opower Social application. You will be able to use this Application to post information to your Facebook Wall.” “If your utility services provider participates in the Opower Social application, then by your use of the Utility Data Connect feature, your energy usage information will be automatically added to your profile.” (2) An express acceptance of the Terms of Service and Privacy Policy applicable to the Application, which states that a User’s utility usage data will be protected from unauthorized disclosure, using security protocols developed by Opower that are designed to safeguard against the loss, misuse and alteration of personal information (including Secure Sockets Layer (SSL) software, which encrypts personal information). Opower will include an express acknowledgement that 120222 dm 00710011 6.a Packet Pg. 51 120222 dm 00710011 5. Pilot Program Opower represents and warrants, and the City acknowledges, that the Application and its related functionality is a pilot program that does not include the integration of the Application into the Opower Customer Web Portal, and this untested pilot program is made available at no cost to the City in connection with the Application. Accordingly, UMS account representatives will provide Opower with feedback regarding the Application on a periodic basis, upon request of Opower (but not more often than three times a year). Opower represents and warrants, and the City acknowledges, that certain functionality set forth herein may be changed by Opower or Opower may cease development and availability of the Application, upon notice to the City or UMS, in light of feedback received from the Users . Opower will use its commercially reasonable efforts to promptly communicate any such material changes to the Utility within 30 days. 6.a Packet Pg. 52 120222 dm 00710011 EXHIBIT “B-2” SCHEDULE OF PERFORMANCE FOR THE SOCIAL ENERGY APPLICATION Opower shall perform the Services during the Beta Period according to the following timeline: The Application will launch to the Utility’s customers in Q2 2012. The timeline and parameters for product launch are at the sole discretion of Opower and are subject to change. Opower anticipates the Beta test period will last through Q4 2012, and will end when the initial set of Beta test features are thoroughly tested, verified and integrated (the “Beta Period”). After the Beta Period, Opower and the City may mutually agree to (i) continue to use the Application as a stand-alone application (not integrated into the Opower Customer Web Portal) or (ii) integrate the Application into the Opower Customer Web Portal as a standard feature, which may carry an additional fee to Utility, in each case to be agreed in writing by the Parties through the execution of an Amendment to the Agreement. Alternatively, the City may elect to cease its use of the Application, at no additional cost to the City. 6.a Packet Pg. 53 120222 dm 00710011 EXHIBIT “C-2” COMPENSATION FOR THE SOCIAL ENERGY APPLICATION Opower will not charge the City for the Services set forth in this Amendment No. Two to Contract. 6.a Packet Pg. 54 120222 dm 00710011 EXHIBIT “D-2” TERMS OF USE Welcome to Opower (“Opower,” “we,” or “us”)! We provide the website located at opower.com (the “Site”), as well as a number of related websites and services (collectively, the “Services”), to our users. The following terms and conditions (the “Terms of Use”) form a binding agreement between You and us, and govern Your use of the Sites and the Services. We partner with utility companies and certain companies that utilities work with (each, a “Utility”) to promote energy efficiency to the Utility’s customers. We provide our users (collectively, “You” or “Your”), many of whom are Utility customers, with the Sites and Services, which include resources and information about energy efficiency. Please note, however, that the Services governed by these Terms of Use do not include Utility Services (defined below), which are governed by separate terms. In addition to the Services we provide directly to You, we may also serve as a service provider for certain Utilities via a number of different Web sites and/or subdomains, through which those Utilities provide certain online and offline services to their end users (“Utility Services”), including collection, use and dissemination of data and information from those end users. These companies have entered into separate written agreements with Opower governing those back-end services provided by Opower. These Terms of Use do not apply to those Utility Services. In each case, it is the Utility providing the Utility Services, not Opower. In those cases, the Utility, not Opower, is responsible for the collection, use and dissemination of any data or personal information provided by, or obtain from, end users of these Utilities and Utility Services, and it is the Utility’s terms of use, not these Terms of Use, that will apply with respect to such data and information. There may be times when we also offer certain services in conjunction with Your Utility through co-branded websites (which are sometimes subdomains of the Site) (“Co-Branded Sites”). These Co-Branded Sites provide services to You by us and Your Utility. Both these Terms of Use and any legal terms of Your Utility will govern Your use of the Co-Branded Sites, and each of our and Your Utility’s privacy policy will also govern any information you provide on the Co-Branded Sites. PLEASE READ THESE TERMS OF USE CAREFULLY. BY ACCESSING THE SITE OR USING THE SERVICES YOU AGREE TO BE BOUND BY THESE TERMS OF USE. IF YOU DO NOT WISH TO BE BOUND BY THESE TERMS OF USE, YOU MAY NOT ACCESS OR USE THIS SITE. YOU HEREBY AGREE TO THE USE OF ELECTRONIC COMMUNICATIONS IN ORDER TO ENTER INTO THIS AGREEMENT, TO CREATE OTHER RECORDS AND TO THE ELECTRONIC DELIVERY OF NOTICES, POLICIES AND RECORDS OF TRANSACTIONS BETWEEN YOU AND US WITH RESPECT TO THIS AGREEMENT, 6.a Packet Pg. 55 120222 dm 00710011 AS FURTHER DETAILED IN SECTION 15. Opower may, at its sole discretion change, add, or delete portions of these Terms of Use at any time on a going-forward basis. It is Your responsibility to check these Terms of Use for changes prior to use of the Site, and in any event Your continued use of the Sites following the posting of changes to these Terms of Use constitutes Your acceptance of any changes. We will notify You of any such material changes by posting notice of the changes on the Site, and/or, in Opower’s sole discretion, by email. 1. USERS. You may simply browse the Sites (a “Visitor’), or You may become a registered user of the Sites as a Utility customer or an employee of a Utility using the Sites or Services in Your capacity as an employee (“Registered User”). Certain features of the Sites are limited to Registered Users. In the event You join our Sites or otherwise provide us with information on the Sites or Services, You agree to only provide us with true, accurate, current and complete information. If we believe or suspect that Your information is not true, accurate, current or complete, we may deny or terminate Your access to the Sites or Services (or any portion thereof). Visitors are not required to provide us information, but if You do so, You agree that any such information will be true, accurate, current and complete information. Visitors agree not to attempt to access Registered User areas of the Sites. 2. REGISTRATION. To become a Registered User, You must register with us on the portion of the Sites designated for customers of Your Utility, at which point You must provide Your name, email address and select a password (Your “Account Credentials”), which You may not transfer to or share with any third parties. We will verify Your registration using certain information including Your name and Utility account number. If someone accesses our Sites or Services using Your Account Credentials, we will rely on those Account Credentials and will assume that it is really You or Your representative who is accessing the Sites and Services. You are solely responsible for any and all use of Your Account Credentials and all activities that occur under or in connection with Your account. Without limiting any rights which we may otherwise have, we reserve the right to take any and all action, as we deem necessary or reasonable, to ensure the security of the Sites and Your Account Credentials, including without limitation terminating Your access to the Sites or Services, changing Your password, or requesting additional information to authorize activities related to Your registration. In no event and under no circumstances will Opower be held liable to You for any liabilities or damages resulting from or arising out of (i) any action or inaction of Opower under this provision, (ii) any compromise of the confidentiality of Your Account Credentials, and (iii) any unauthorized access to or use of Your Account Credentials. Please notify us immediately at info@opower.com if You become aware that Your Account Credentials are being used without authorization. 3. OWNERSHIP. You understand and acknowledge that the software, code, proprietary methods and systems used to provide the Sites or Services (“Our Technology”) are: (i) 6.a Packet Pg. 56 120222 dm 00710011 copyrighted by us and/or our licensors under United States and international copyright laws; (ii) subject to other intellectual property and proprietary rights and laws; and (iii) owned by us or our licensors. Our Technology may not be copied, modified, reproduced, republished, posted, transmitted, sold, offered for sale, or redistributed in any way without our prior written permission and the prior written permission of our applicable licensors. You must abide by all copyright notices, information, or restrictions contained in or attached to any of Our Technology. Nothing in these Terms of Use grants You any right to receive delivery of a copy of Our Technology or to obtain access to Our Technology except as generally and ordinarily permitted through the Sites according to these Terms of Use. Furthermore, nothing in these Terms of Use will be deemed to grant, by implication, estoppel or otherwise, a license to Our Technology. Certain of the names, logos, and other materials displayed on the Sites or in the Services constitute trademarks, tradenames, service marks or logos (“Marks”) of Opower or other entities. You are not authorized to use any such Marks. Ownership of all such Marks and the goodwill associated therewith remains with us or those other entities. Any use of third party software provided in connection with the Sites or Services will be governed by such third parties’ licenses and not by these Terms of Use. Certain materials, information and content made available or displayed on the Sites or sent to You through the Services, and any derivative works thereof, whether made by us or You but in all cases excluding Your Content (collectively, “Content”) are proprietary to us or our licensors and should be considered our confidential information. Subject to these Terms of Use, we hereby grant You a limited, non-exclusive, non-transferable license to view, use, download and print the Content solely for Your personal, informational, non-commercial and internal review and solely in accordance with these Terms of Use. You may not: (i) use the Content or any part thereof to develop products or technologies similar to the products of Opower; (ii) reproduce, republish, modify or alter the Content; (iii) distribute or sell, rent, lease, license or otherwise make the Content available to others; or (iv) otherwise remove any text, copyright or other proprietary notices contained in the Content. As between You and us, we retain all right, title and interest in and to the Content, and all related intellectual property rights. We reserve all rights not granted in these Terms of Use. 4. YOUR CONTENT. To the extent permitted through any Services, You may have the ability to post, submit, email or otherwise make available on the Sites or the Services certain information, text or materials (“Your Content”). You are entirely responsible for each individual item of Your Content. As between You and us, You retain ownership and any intellectual property rights in any copyrighted materials that are contained in Your Content. You grant us a non-exclusive, royalty-free, fully paid, fully sublicenseable, worldwide license, under any and all of Your copyright and other intellectual property rights related to Your Content, to reproduce, distribute, publicly display and perform, prepare derivative works of, incorporate into other works, and otherwise use Your Content. You agree that any of Your Content or any derivative works thereof may be disseminated, distributed, publicly displayed, reproduced, used, sublicensed, posted, or 6.a Packet Pg. 57 120222 dm 00710011 published by us, and searched, displayed, printed or otherwise used or exploited by our customers, except that information You submit directly to us relating to Your interest in a job opening with Opower will be used and disclosed in accordance with our Privacy Statement. You represent and warrant that Your Content will not: 1. Infringe the copyright, trademark, trade secret, or other intellectual property or proprietary right of others; 2. Violate the privacy, publicity, or other rights of third parties; 3. Violate any other law, statute, ordinance or regulation, including laws regarding anti-discrimination and false advertising; 4. Be false or inaccurate or becomes false or inaccurate at any time; 5. Be or contain material that is discriminatory, unlawful, tortious, obscene, fraudulent, defamatory, harmful, threatening, pornographic, indecent, vulgar, harassing, discourteous, hateful, abusive or racially, ethnically, religiously, sexually or otherwise offensive, as determined by us in our sole discretion; 6. Disclose or provide information protected under any law, agreement or fiduciary relationship, including but not limited to proprietary or confidential information of others; 7. Misrepresent Your identity in any way; 8. Contain any viruses, Trojan horses, worms, time bombs, cancelbots, or other disabling devices or other harmful component intended to damage, detrimentally interfere with, surreptitiously intercept or expropriate any system, data or personal information; 9. Advocate or encourage any illegal activity; or 10. Have the potential to create liability for us or cause us to violate the requirements of or to lose the services, in whole or in part, of our Internet service providers or other suppliers. Though we strive to enforce these rules with all of our users, You may be exposed through the Sites or Services to Content that violates our policies or is otherwise offensive. You access the Sites and Services at Your own risk. We may, but are not obligated to, remove Content from the Sites for any reason, including if we determine or suspect that such Content violates these Terms of Use. We are merely acting as a passive conduit for such distribution and we take no responsibility for Your exposure to Content on the Sites or through the Services whether it violates our content policies or not. Our discussion forums may be public (or, at a minimum, available to fellow Utility customers), so others may read Your question or comments. Please respect the confidentiality of others. 5. General Rules of User Conduct. It is our goal to make access to our Sites and Services a good experience for all of our users. You agree not to, and represent and warrant that You will not: 1. Use, reproduce, duplicate, copy, sell, resell or exploit: (a) any portion of the Sites or Services; (b) Your use of the Sites or Services, or (c) Your access to the Sites 6.a Packet Pg. 58 120222 dm 00710011 or Services, in each case for any purpose other than for which the Sites or Services are being provided to You; 2. Conduct or promote any illegal activities while using the Sites or Services; 3. Upload, distribute or print anything that may be harmful to minors; 4. Attempt to reverse engineer or jeopardize the correct functioning of the Site, or otherwise attempt to derive the source code of the software (including the tools, methods, processes, and infrastructure) that enables or underlies the Site; 5. Attempt to gain access to secured portions of the Sites or Services to which You do not possess access rights; 6. Upload or transmit any form of virus, worm, Trojan horse, or other malicious code; 7. Use the Sites or Services to generate unsolicited email advertisements or spam; 8. Use the Sites or Services to stalk, harass or harm another individual; 9. Use any high volume automatic, electronic or manual process to access, search or harvest information from the Sites or Services (including without limitation robots, spiders or scripts); 10. Interfere in any way with the proper functioning of the Sites and Services or interfere with or disrupt any servers or networks connected to the Sites or Services, or disobey any requirements, procedures, policies or regulations of networks connected to the Sites or Services; 11. Use any robot, spider, other automatic device, or manual process to extract, “screen scrape,” monitor, “mine,” or copy any static or dynamic web page on the Sites or the Content contained on any such web page for commercial use without our prior express written permission; 12. Impersonate any person or entity, or otherwise misrepresent Your affiliation with a person or entity; or 13. Mirror or frame the Sites or any Content, place pop-up windows over its pages, or otherwise affect the display of its pages. 6. FEEDBACK. In the event that You provide us any ideas, thoughts, criticisms, suggested improvements or other feedback related to the Sites or the Services (collectively “Feedback”), You agree we may use the Feedback to modify our Services and that You will not be due any compensation, including any royalty related to the product or service that incorporates Your Feedback. You grant to us a worldwide, royalty-free, fully paid, perpetual, irrevocable license to use, reproduce, modify, translate, distribute, perform, display, import, sell, offer for sale, make, have made and otherwise exploit the Feedback in any form, media, or technology, whether now known or hereafter developed, and to allow others to do the same. This is true whether You provide the Feedback on the Sites or through any other method of communication with us, unless we have entered into a separate agreement with You that provides otherwise. 7. PRIVACY. We know that Your privacy is important. For this reason, we have created a privacy policy (the “Privacy Statement”) that describes our collection, use and disclosure practices regarding any personal information that You provide to us. The 6.a Packet Pg. 59 120222 dm 00710011 security of Your personal information is important to us. While there is no such thing as "perfect security" on the Internet, we will take reasonable steps to help ensure the safety of Your personal information. However, You understand and agree that such steps do not guarantee that the Sites and the Services are invulnerable to all security breaches or immune from viruses, security threats or other vulnerabilities. Opower reserves the right to cooperate with local, state, provincial and national authorities in investigations of improper or unlawful activities and this may require the disclosure of Your personal information. We may also report to other organizations about improper or unlawful user activities and this reporting may include disclosure of personal information relating to those individuals conducting such improper or unlawful activities. As we detail in our Privacy Statement, we may also collect information with or on behalf of Your Utility, including on Co-Branded Sites, in which case You acknowledge and agree that such information will be considered to be collected by both us and Your Utility. While this Privacy Statement governs our use and disclosure of that information, You should be aware that Your Utility may have different practices, and all such information may be used and disclosed by Your Utility in accordance with their own privacy policy. While we do not actively provide Your Personal Information to Your Utility, Your Utility may have access to any information collected on a Co-Branded Sites through its customer service center. We encourage you to review Your Utility’s privacy practices. 8. MODIFICATIONS TO THE SITE OR SERVICES. We reserve the right to modify or discontinue the Sites or Services with or without notice to You. We will not be liable to You or any third party should we exercise our right to modify or discontinue the Sites and/or Services. If You object to any such changes, Your sole recourse will be to cease access to the Sites or Services. Continued access to the Sites or Services following notice of any such changes will indicate Your acknowledgement of such changes and satisfaction with the Sites or Services as so modified. You agree that we, in our sole discretion, may immediately terminate Your access to the Sites and Services at any time, for any reason, in our sole discretion. Please note that if Your access to the Sites and Services is through your employer, your access will be terminated upon Your employer communicating to us that You are no longer an employee of such employer. YOU AGREE THAT WE WILL NOT BE LIABLE TO YOU OR ANY OTHER PARTY FOR ANY TERMINATION OF YOUR ACCESS TO THE SITE OR SERVICES. 9. THIRD PARTY CONTENT AND OTHER WEBSITES. Content from other users, suppliers, advertisers, and other third parties may be made available to You through the Sites and/or the Services. Because we do not control such content, You agree that we are not responsible for any such content. We do not make any guarantees about the accuracy, currency, suitability, or quality of the information in such content, and we assume no responsibility for unintended, objectionable, inaccurate, misleading, or unlawful content made available by other users, advertisers, and other third parties or violation of any third party rights related to such content. The Sites and Services may contain links to websites not operated by us. We are not responsible for the content, products, materials, or 6.a Packet Pg. 60 120222 dm 00710011 practices (including privacy practices) of such websites. You understand that by using the Sites and/or Services You may be exposed to third-party websites that You find offensive, indecent or otherwise objectionable. We make no warranty, representation, endorsement, or guarantee regarding, and accept no responsibility for, the quality, content, nature or reliability of third party websites, products or services accessible by hyperlink or otherwise from the Sites or Services. We provide these links for Your convenience only and we do not control such websites. Our inclusion of links to such websites does not imply any endorsement of the materials on such third party websites or any association with their operators. The Sites and Services may contain links to websites that are operated by us but which operate under different terms of use. It is Your responsibility to review the privacy policies and terms of use of any other website You visit. YOU AGREE THAT IN NO EVENT WILL WE BE LIABLE TO YOU IN CONNECTION WITH ANY WEBSITES, CONTENT, MATERIALS, OR PRACTICES OF ANY THIRD PARTY. 10. DISCLAIMER OF WARRANTIES. THIS SITE AND ALL CONTENT AND SERVICES INCLUDED ON OR OTHERWISE MADE AVAILABLE TO YOU THROUGH THIS SITE ARE PROVIDED BY Opower “WITH ALL FAULTS” AND ON AN "AS IS" AND "AS AVAILABLE" BASIS, UNLESS OTHERWISE SPECIFIED IN WRITING. Opower MAKES NO REPRESENTATIONS OR WARRANTIES OF ANY KIND, WHETHER EXPRESS OR IMPLIED, AS TO THE OPERATION OF THIS SITE OR THE CONTENT OR SERVICES INCLUDED ON, OR OTHERWISE MADE AVAILABLE TO YOU THROUGH, THIS SITE, UNLESS OTHERWISE SPECIFIED IN WRITING, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR USE OR PURPOSE, NON-INFRINGEMENT, QUIET ENJOYMENT, AND ACCURACY. YOU EXPRESSLY AGREE THAT YOUR USE OF THIS SITE IS AT YOUR SOLE RISK. We make no warranty that the Sites or Services will meet Your requirements, or that the Sites and/or Services will be uninterrupted, timely, secure, or error free; nor do we make any warranty as to the results that may be obtained from the use of the Sites or Services, or that defects in the Sites or Services will be corrected. You understand and agree that You will be solely responsible for any damage to Your computer or loss of data that results from the download of any material and/or Content. No advice or information, whether oral or written, obtained by You from us through the Site, Services, or otherwise will create any warranty, representation or guarantee not expressly stated in these Terms of Use. 11. LIMITATION OF LIABILITY. YOU ACKNOWLEDGE AND AGREE THAT WE ARE ONLY WILLING TO PROVIDE ACCESS TO THE SITE AND SERVICES IF YOU AGREE TO CERTAIN LIMITATIONS OF OUR LIABILITY TO YOU AND TO THIRD PARTIES. YOU UNDERSTAND THAT TO THE EXTENT PERMITTED UNDER APPLICABLE LAW, IN NO EVENT WILL WE OR YOUR UTILITY (OR OUR OR THEIR RESPECTIVE OFFICERS, EMPLOYEES, DIRECTORS, PARENTS, SUBSIDIARIES, AFFILIATES, AGENTS OR LICENSORS) BE LIABLE FOR ANY 6.a Packet Pg. 61 120222 dm 00710011 INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL OR EXEMPLARY DAMAGES, INCLUDING BUT NOT LIMITED TO, DAMAGES FOR LOSS OF REVENUES, PROFITS, GOODWILL, USE, DATA, LOST OPPORTUNITIES, OR BUSINESS INTERRUPTIONS OR OTHER INTANGIBLE LOSSES (EVEN IF SUCH PARTIES WERE ADVISED OF, KNEW OF OR SHOULD HAVE KNOWN OF THE POSSIBILITY OF SUCH DAMAGES, AND NOTWITHSTANDING THE FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY), ARISING OUT OF OR RELATED TO YOUR USE OF OR ACCESS TO, OR THE INABILITY TO USE OR TO ACCESS, THE SITE OR THE SERVICES, REGARDLESS OF WHETHER SUCH DAMAGES ARE BASED ON CONTRACT, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY), WARRANTY, STATUTE OR OTHERWISE. WE WILL NOT BE LIABLE FOR ANY DAMAGES ARISING FROM ANY INFORMATION APPEARING ON THIRD PARTY MERCHANT SITES OR ANY OTHER SITE LINKED TO OUR SITE. IF YOU ARE DISSATISFIED WITH ANY PORTION OF THIS SITE OR THE SERVICES, YOUR SOLE AND EXCLUSIVE REMEDY IS TO DISCONTINUE USE OF THE SITE AND THE SERVICES. OUR AND YOUR UTILTIY’S TOTAL LIABILITY TO YOU FOR ALL CLAIMS ARISING FROM OR RELATED TO THE SITE OR THE SERVICES IS LIMITED, IN AGGREGATE, TO ONE HUNDRED DOLLARS (U.S. $100.00). Some jurisdictions do not allow the exclusion of certain warranties or the limitation or exclusion of liability for incidental or consequential damages. Accordingly, some of the above limitations and disclaimers may not apply to You. To the extent that we may not, as a matter of applicable law, disclaim any implied warranty or limit liabilities, the scope and duration of such warranty and the extent of our liability will be the minimum permitted under such applicable law. Without limiting the foregoing, under no circumstances WILL WE or our licensors be held liable for any delay or failure in performance resulting directly or indirectly from acts of nature, forces, or causes beyond our reasonable control, including, without limitation, Internet failures, computer equipment failures, telecommunication equipment failures, other equipment failures, electrical power failures, strikes, labor disputes, riots, insurrections, civil disturbances, shortages of labor or materials, fires, floods, storms, explosions, acts of God, war, governmental actions, orders of domestic or foreign courts or tribunals, OR non-performance of third parties. Some states do not allow exclusion of implied warranties, so these exclusions may not apply in individual cases. You may have additional rights that vary from state to state. To the extent that we may not, as a matter of applicable law, disclaim any implied warranty, the scope and duration of such warranty will be the minimum permitted under such applicable law. 12. INDEMNIFICATION. You agree to indemnify, defend and hold harmless Opower, our parents, subsidiaries, affiliates, officers, directors, co-branders and other partners, employees, consultants and agents, from and against any and all third-party claims, liabilities, damages, losses, costs, expenses, fees (including reasonable attorneys' fees and court costs) that such parties may incur as a result of or arising from: (i) Your use of the Sites or Services, including any Your Content (except to the extent prohibited by law); 6.a Packet Pg. 62 120222 dm 00710011 (ii) Your violation of these Terms of Use; (iii) Your violation of any rights of any other person or entity; or (iv) any viruses, Trojan horses, worms, time bombs, spyware, malware, cancelbots or other similar harmful or deleterious programming routines input by You into the Sites or Services. 13. RELEASE. You hereby release Opower, its officers, employees, agents and successors from claims, demands any and all losses, damages, rights, claims, and actions of any kind including, without limitation, personal injuries, death, and property damage, that is either directly or indirectly related to or arises from Your use of the Site. You hereby waive California Civil Code Section 1542, which states: "A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which, if known by him must have materially affected his settlement with the debtor" and You waive any other similar provision of the laws of any other applicable jurisdiction. 14. COPYRIGHT VIOLATIONS. We respect the intellectual property of others, and we ask You to do the same. If You believe that Your work has been copied in a way that constitutes copyright infringement, please provide our copyright agent the following information: 1. An electronic or physical signature of the person authorized to act on behalf of the owner of the copyright interest; 2. A description of the copyrighted work that You claim has been infringed; 3. A description of where the material that You claim is infringing is located on the Sites or Services; 4. Your address, telephone number, and email address; 5. A statement by You that You have a good faith belief that the disputed use is not authorized by the copyright owner, its agent, or the law; and 6. A statement by You, made under penalty of perjury, that the above information in Your notice is accurate and that You are the copyright owner or authorized to act on the copyright owner's behalf. Our copyright agent for notice of claims of copyright infringement on the Sites or the Services can be reached by mail at: Copyright Agent, Opower, Inc., 1515 N Courthouse Rd, 8th Floor Arlington, VA or by email at copyright@Opower.com. 15. Electronic Communications. We can only give You the benefits of our service by conducting business through the Internet, and therefore we need You to consent to our giving You Communications electronically. This Section 15 informs You of Your rights when receiving Communications from us electronically. For contractual purposes, You (i) consent to receive communications from us in an electronic form; and (ii) agree that all terms and conditions, agreements, notices, documents, disclosures, and other communications (“Communications”) that we provide to You electronically satisfy any legal requirement that such Communications would satisfy if it were in a writing. Your consent to receive Communications and do business electronically, and our agreement to do so, applies to all of Your interactions and transactions with us. The foregoing does not 6.a Packet Pg. 63 120222 dm 00710011 affect Your non-waivable rights. You may also receive a copy of these Terms of Use by accessing this Site. You may withdraw Your consent to receive Communications electronically by contacting us in the manner described below. If You withdraw Your consent, from that time forward, You must stop using the Sites and Services. The withdrawal of Your consent will not affect the legal validity and enforceability of any obligations or any electronic Communications provided or business transacted between us prior to the time You withdraw Your consent. Please keep us informed of any changes in Your email or mailing address so that You continue to receive all Communications without interruption. 16. General Terms. You are responsible for compliance with all applicable laws. The Terms of Use and the relationship between You and Opower will be governed by the laws of the Commonwealth of Virginia, without giving effect to any choice of laws principles that would require the application of the laws of a different country or state. Any legal action, suit or proceeding arising out of or relating to the Terms of Use, or Your use of the Sites or Services must be instituted exclusively in the federal or state courts located in Arlington County, Virginia and in no other jurisdiction. You further consent to exclusive personal jurisdiction and venue in, and agree to service of process issued or authorized by, any such court. These Terms of Use are personal to You, and You may not transfer, assign or delegate Your right and/or duties under these Terms of Use to anyone else and any attempted assignment or delegation is void. You acknowledge that we have the right hereunder to seek an injunction, if necessary, to stop or prevent a breach of Your obligations hereunder. The paragraph headings in these Terms of Use, shown in boldface type, are included only to help make these Terms of Use easier to read and have no binding effect. Any delay or failure by us to exercise or enforce any right or provision of these Terms of Use will not constitute a waiver of such right or provision. No waiver by us will have effect unless such waiver is set forth in writing, signed by us; nor will any such waiver of any breach or default constitute a waiver of any subsequent breach or default. These Terms of Use constitute the complete and exclusive agreement between You and us with respect to the subject matter hereof, and supersedes all prior oral or written understandings, communications or agreements. If for any reason a court of competent jurisdiction finds any provision of these Terms of Use, or portion thereof, to be unenforceable, that provision of the Terms of Use will be enforced to the maximum extent permissible so as to effect the intent of the parties, and the remainder of these Terms of Use will continue in full force and effect. 17. SURVIVAL. Sections 1, 3, 4 through 7 and 9 through 18, as well as any other limitations on liability explicitly set forth herein and our proprietary rights in and to the Site, Content provided by us, Our Technology and the Services, will survive the expiration or termination of these Terms of Use for any reason. 18. CONTACTING US. If You have any questions or concerns about our Site, our relationship with Your Utility, or anything else, please send an e-mail to info@opower.com. We may give notice to You by email, a posting on the Site, or other reasonable means. You must give notice to us in writing via email 6.a Packet Pg. 64 120222 dm 00710011 to info@opower.com or as otherwise expressly provided. Please report any violations of these Terms of Use to info@opower.com. LAST UPDATED. November 28, 2011. 6.a Packet Pg. 65 PRIVACY POLICY: OPOWER, Inc. (“Opower,” “we,” “us,” or “our”) has created this privacy statement in order to demonstrate our commitment to you, our user (“You” or “Your”), regarding Your privacy with respect to information that You submit to Opower by or through the Site or Services (defined below). Scope of this Privacy Statement We partner with utility companies and their designees (each, a “Utility”) to promote energy efficiency to the Utility’s customers. You may be a Utility customer, an employee of a Utility using the Site or Services in your capacity as an employee or a visitor to the site who is neither a customer nor employee of a Utility (in each case, individually, a “User,” and collectively, as “Users”). This Privacy Statement applies to opower.com (“opower.com”), including all portions of opower.com where Utility customers can obtain services from Opower (the “Site”). Because we gather information from Users of the Site and related services offered through the Site provided by Opower (the “Services”), we have established this Privacy Statement as a means to communicate our information gathering, use and dissemination practices. In order to access and use the Site and/or Services, You must agree to our Terms of Use posted on the applicable Site. Any capitalized terms not defined in this Privacy Statement are defined in the Terms of Use. In addition to the Services we provide directly to You, we may also serve as a service provider for certain Utilities via a number of different Web sites and/or subdomains, through which those Utilities provide certain online and offline services to their end users (“Utility Services”), and Opower assists them in such provision, including the collection, use and dissemination of data and information from those customers. These companies have entered into separate written agreements with Opower governing those services provided by Opower. This Privacy Statement does not apply to those Utility Services. In each case, it is the Utility providing the Utility Services, not Opower. In those cases, the Utility, not Opower, is responsible for the collection, use and dissemination of any data or personal information provided by, or obtained from, end users of these Utilities and Utility Services, and it is the Utility’s privacy policy, not this Privacy Statement, that will apply with respect to such data and information. As a result, this Privacy Statement does not apply to or restrict our use of information that we receive from your Utility or that we collect from any third party on behalf of Your Utility. We consider the phrase “Personal Information” to mean any information or combination of information that is used or intended to be used to identify a discrete Individual, and any other non-public information that is associated with that information. “Anonymous Information” means information that is not associated with or linked to Your Personal Information, and is not used or intended to be used to personally identify an individual. 120222 dm 00710011 6.a Packet Pg. 66 BY USING OUR SITE OR SERVICES OR SUBMITTING PERSONAL INFORMATION THROUGH OUR SITE OR SERVICES, YOU AGREE TO THE TERMS OF THIS PRIVACY STATEMENT AND YOU EXPRESSLY CONSENT TO THE PROCESSING OF YOUR PERSONAL INFORMATION ACCORDING TO THIS PRIVACY STATEMENT. YOUR PERSONAL INFORMATION MAY BE PROCESSED BY US OR ON OUR BEHALF IN THE COUNTRY WHERE IT WAS COLLECTED AS WELL AS OTHER COUNTRIES (INCLUDING THE UNITED STATES) WHERE LAWS REGARDING PROCESSING OF PERSONAL INFORMATION MAY BE LESS STRINGENT THAN THE LAWS IN YOUR COUNTRY. E.U. Safe Harbor and TRUSTe Certification Opower complies with the U.S.-E.U. Safe Harbor Principles as set forth by the U.S. Department of Commerce regarding the collection, use, transfer, and retention of personal data from the European Union. For more information on the EU Safe Harbor Framework, please visit http://www.export.gov/safeharbor/. As part of our participation in the EU Safe Harbor Framework, Opower has agreed to TRUSTe dispute resolution for disputes relating to our compliance with it. If you have questions or complaints regarding our privacy policy or practices, please contact us at Opower, Inc., Attn: Legal Department, 1515 North Courthouse Rd., Eighth Floor, Arlington, VA 22201 or privacy@opower.com. If you are not satisfied with our response you can contact TRUSTe here. The TRUSTe program covers only information that is collected through this Web site. Collected Information Should You choose to provide us with Personal Information, we will treat such information in accordance with this Privacy Statement. The Personal Information we gather from You helps us learn more about, and provide You with, access to the Site or Services. We collect Personal Information that You submit to us voluntarily in the course of correspondence, registration and as otherwise identified below. We primarily collect this information to provide Services to You, including Services we provide in conjunction with Your Utility. To register for certain Services offered on our Site, You may be required to provide certain Personal Information, including Your name, Utility account number and e-mail address. Through Your use of the Services, we may ask for additional information about Your residence, such as the home type, square footage, and number of residents. You are not required to provide this information, but we may not be able to provide certain Services without this information. We may associate this information with Your Personal Information, making it also Personal Information. Additionally, when You send us a communication, or fill out a request form such 120222 dm 00710011 6.a Packet Pg. 67 as a survey, we will collect all information contained therein. We do not request Users to submit social security numbers through the Site or Services, and You should not submit this information to us, to other Users or to any third party, through the Site or Services. If You are interested in working at Opower, we enable You to apply for job openings on our Site. If You do this, you may submit information and your résumé directly to us through the Site, and You may also enable us to collect Personal Information about You from third party Web sites such as LinkedIn. When you use such Web sites or certain similar services to apply for a job, you will have the option to post information about your activities on this Web site to your profile page to share with others within your network. We will consider all Personal Information collected from this area of our Site as “Applicant Information”. If You submit Applicant Information, we will only use that information to evaluate Your employment application and communicate with You. Information From Other Sources We may also receive Personal Information about You from: (i) Your Utility; (ii) third-parties that provide services for us in connection with the Site or Services, and (iii) third parties to whom You have voluntarily provided information. We may add this information to the information we have already collected from You via the Site or Services. This Privacy Statement does not restrict our use of that additional information Information Collected Via Technology As You use the Site or Services, certain information may also be collected and stored on our or our service providers’ server logs, including Your Internet protocol address, browser type, and operating system. We also use Cookies and navigational data like Uniform Resource Locators (URL) to gather information regarding the date and time of Your visit and the information for which You searched and viewed. An “Internet protocol address” or “IP Address” is a number that is automatically assigned to Your computer when You use the Internet. In some cases Your IP Address stays the same from browser session to browser session; but if You use a consumer internet access provider, Your IP Address probably varies from session to session. We, or our service providers, may track Your IP Address when You access the Site or Services. “Cookies” are pieces of information that some Web sites transfer to the computer that is browsing that Web site and are used for record-keeping purposes at many Web sites. Use of Cookies makes Web-surfing easier by performing certain functions such as saving passwords, personal preferences regarding the use of the particular Web site and making sure the user does not see the same ad repeatedly. Our site uses Cookies to enhance Your experience by allowing us to track Your click-stream data (the specific pages You visit on the Site), improving performance, and tailoring web content to Your interests. We do not store any Personal 120222 dm 00710011 6.a Packet Pg. 68 Information in the Cookies. Browsers are usually set to accept Cookies. However, if You would prefer not to receive cookies, You may alter the configuration of Your browser to refuse Cookies. If You choose to have Your browser refuse Cookies, it is possible that some areas of our Site will not function as effectively when You view them. Disclosure – Relationship with Your Utility There may be times when we also offer certain services in conjunction with Your Utility through co-branded Web sites (which are sometimes subdomains of the Site) (“Co-Branded Sites”). These Co-Branded Sites provide services to You by us and Your Utility. Both this Privacy Statement and the Utility’s privacy policy govern information collected on Co-Branded Sites. Please be aware that when we collect information on the Co-Branded Sites, that information will be considered to be collected by both us and Your Utility. While this Privacy Statement governs our use and disclosure of that information, You should be aware that Your Utility may have different practices, and all such information may be used and disclosed by Your Utility in accordance with their own privacy policy. While we do not actively provide Your Personal Information to Your Utility, Your Utility will have access to any information collected on a Co-Branded Site through its customer service center. As we provide services on Your Utility’s behalf, we may in certain situations use your Personal Information in a manner in which you provided consent to your Utility. Disclosure – Usage of Third Party Cookies We may allow third-party companies to collect certain Anonymous Information when You visit our Site. These companies typically use a Cookie or a third party web beacon to collect this information. Such Cookies will not be used to associate individual Users of a Site to any Personal Information. For example, one of our service providers tracks emails we send to You via the Services. Use of Information In general, we use Personal Information that You submit to us to: Register You for and/or provide You access to the Site or Services and administer Your account; Provide You Services, including Services related to Your Utility and analytics and information about energy efficiency and Your energy choices; Enable Your Utility to provide You Services or otherwise improve the services being provided by Your Utility; Tailor the features, performance and support of the Site or Services to You; Respond to Your requests, resolve disputes and/or troubleshoot problems; Market our products and services to You that we believe may be of interest to You; Improve the quality of the Site and the Services; and Communicate with You about the Site and the Services. 120222 dm 00710011 6.a Packet Pg. 69 We may occasionally contact Users to further discuss their interest in Opower, the Services that we provide, and to send information regarding Opower. If You would not like to receive these emails, please see the section below titled “Opt-Out Policy”, but please remember that even if You opt out, we may still send information such as administrative emails which pertain to the Site and Services. We may create Anonymous Information records from Personal Information by excluding information (such as Your name or email address) that makes the information personally identifiable to You. Disclosure of Information It is our general policy to restrict who can access Personal Information. Except as otherwise stated in this Privacy Statement, we do not trade, rent, or share the Personal Information that we collect with third-parties, unless You ask or authorize us to do so. You hereby authorize us to disclose Your Personal Information to Your Utility. We may provide Your Personal Information to third-party service providers who work on behalf of or with us to provide some of the services and features of the Site or Services and to help us communicate with You. Examples of such services may include, but are not limited to, sending emails, analyzing data, providing marketing assistance and conducting surveys. These third- parties are required not to disclose Your Personal Information and not to use Your Personal Information except based on our instructions and in accordance with this Privacy Statement. In the event of a change in ownership, or a merger with, acquisition by, or sale of assets to, another entity, we reserve the right to transfer all of Your Personal Information to that entity. Opower will notify You (via a posting on this Site or email (at Opower's discretion)) of such a transfer, and You may choose to modify certain of Your Personal Information at that time. This means if You are concerned about Your Personal Information being transferred to a new owner, You can notify us and requested that Your account not being transferred to the new owner. We may share some or all of Your Personal Information with Your Utility or other third-parties to whom You ask or authorize us to send Your information. This Privacy Statement does not cover the use of Your personally identifiable information by such third-parties. Opower does not maintain responsibility for the manner in which third-parties use or further disclose Your personally identifiable information collected from You in accordance with this Privacy Statement, after we have disclosed such information to those third-parties. You agree and acknowledge that by using the Site and Services, You hereby consent to Opower sharing Your Personal Information under the circumstances described herein. If You do not want Opower to use or disclose Personal Information collected about You in the ways identified in this Privacy Statement, we will not be able to provide, and You may not use the Site or Services, and must notify Opower by emailing privacy@opower.com or following any of the other opt-out procedures discussed below in the “Opt-Out Policy” section. Please note that this opt-out will only affect your receipt of reports and emails, and will not affect our use of previously collected information. Opower reserves the right to disclose Your Personal Information if required by law or if Opower 120222 dm 00710011 6.a Packet Pg. 70 reasonably believes that such disclosure is necessary to (a) resolve disputes, investigate problems, or enforce our Terms of Use; (b) comply with relevant laws or to respond to requests from law enforcement or other government officials relating to investigations or alleged illegal activity, we can (and You authorize us to) disclose Personal Information without subpoenas or warrants served on us; or (c) protect and defend the rights or property of Opower, You, or third- parties. If You provide Applicant Information, we may disclose that information in all of the ways permitted above, except that we will not share it with Your Utility (if You have one). We reserve the right to disclose Anonymous Information publicly without restriction, including to third party vendors who may help us enhance or provide the Site or Services or to third parties. Feedback If You provide feedback to us, we may use and disclose such feedback for any purpose, provided we do not associate such feedback with Your Personal Information. We will collect any information contained in such feedback and will treat the Personal Information in it in accordance with this Privacy Statement. Third Party Sites The Site may contain links to other Web sites, including those of Utilities. Opower is not responsible for the privacy practices or the content of these other websites. This Privacy Statement applies solely to information collected by us through the Site or Services and does not apply to these third party websites. Users will need to check the privacy policies of these others websites to understand their policies. Users who access a linked site may be disclosing their Personal Information. Regarding Children The Site is not directed to children and children are not eligible to use our Services. We do not collect or maintain Personal Information from people we actually know are under 13 years old, and no part of the Site or Services is designed to attract people under 13 years old. If we later obtain actual knowledge that a User is under 13 years old, we will take steps to remove that User's Personal Information from our databases. Security We have put in place reasonable security measures designed to safeguard against the loss, misuse and alteration of Your Personal Information under our control. This includes utilizing Secure Sockets Layer (SSL) software, which encrypts the personal information you input. . Despite such efforts, however, please note that no company, including Opower, can fully eliminate risks or guarantee the security of Your Personal Information; unauthorized entry or use, hardware or software failure, and other factors may compromise the security of information about You at any time, and we bear no liability for uses or disclosures of personal data or non- personal data arising in connection with the theft thereof. If you have any questions about security on our Web site, you can contact us at privacy@opower.com. Opower conducts periodic self-assessments to verify that the attestations and assertions it makes about its privacy practices are true and that such privacy practices have been implemented as 120222 dm 00710011 6.a Packet Pg. 71 presented. Opower will take steps to remedy any problems arising out of failure to comply with the Safe Harbor principles. Opt-Out Policy Opower offers Users of its Site and Services a means to opt-out of receiving certain service related communications from us. Your Utility may initially register You for certain service related communications or otherwise opt You in to receiving these types of communications. If, at any time after registering for information or ordering Services, You change Your mind about being contacted by us, You can opt-out of receiving such information by logging onto the Site, accessing Your account and selecting the “Opt-Out” option, or by contacting your Utility company directly. In addition, Users can choose to opt out of newsletters, reports and promotional emails via the opt-out link included in each email. However, even if You opt-out of receiving such communications, we retain the right to send You service-related communications in our sole discretion. Correcting & Updating Your Information You may correct and update the Personal Information we have collected directly from You by logging onto the Site and accessing Your account or by sending us an email at privacy@opower.com. However, we do not permit You to edit Personal Information we have received directly from Your Utility, including your name, address and account number. If You wish to change this information, please contact Your Utility directly, and we will update it in our records the next time we receive information about You from Your Utility (generally weekly). We do not permit You to view or access Applicant Information on the Site or Services. As permitted under the Safe Harbor provisions, we may not make all requested changes where such changes are unreasonably burdensome or expensive. We will however, promptly correct any inaccuracies in any Personal Information that we have in our possession once notified of the requested change. We endeavor to process these requested changes as soon as is possible, but it may take up to thirty (30) days to make requested changes. Certain information is necessary in order for us to provide the Site or Services; therefore, if You delete such necessary information You will not be able to use the Site or Services. If You wish discontinue the Services, You may contact us at privacy@opower.com. After such request, we may continue to use Anonymous Information previously derived from your Personal Information. We may also continue to receive Personal Information about You from Your Utility. If our relationship with Your Utility ends, we are contractually obligated to the Utility to delete all Personal Information related to such Utility, provided, however, that we may continue to maintain and use Your Personal Information in a manner where the information is no longer personally identifiable. Please note that even after the deletion of Your Personal Information by us, we may be required (by law or otherwise, such as to prevent fraud, resolve disputes, troubleshoot problems, or 120222 dm 00710011 6.a Packet Pg. 72 120222 dm 00710011 enforce our Services Agreement) to keep this information and not delete it (or to keep this information for a certain time) in which case we will comply with Your deletion request only after we have fulfilled such requirements). When we delete Personal Information, it will be deleted from the active database, but may remain in our archives. Notification of Changes We may update this privacy statement to reflect changes to our information practices. If we make any material changes we will notify you by email (sent to the e-mail address specified in your account) or by means of a notice on this Site prior to the change becoming effective. We encourage you to periodically review this page for the latest information on our privacy practices. Additional Information Questions regarding this Privacy Statement or the practices of the Site or Services should be directed to Opower by e-mailing such questions to privacy@opower.com. Contact Information If Users have any questions or suggestions regarding our Privacy Statement, please contact us: Contact: Opower Privacy Email: privacy@opower.com Address: 1515 N Courthouse Rd, 8th Floor Arlington, VA 22201 Last updated. November 28, 2011 6.a Packet Pg. 73 FIRST AMENDMENT TO CONTRACT #C10134341 BETWEEN THE CITY OF PALO ALTO AND OPOWER, INC. FOR PROFESSIONAL SERVICES DELIVERING HOME ENERGY REPORTS This First Amendment (the “First Amendment”) to Contract No. C10134341 between the City of Palo Alto, a charter city and a municipal corporation of the State of California (“City”) and OPOWER, Inc., a Delaware corporation, located at 1515 North Courthouse Road, Suite 610, Arlington, VA 22201, (“Consultant”) originally entered into effective on May 3, 2010, is executed this day of , 2011. RECITALS WHEREAS, on May 3, 2010, City and OPOWER, Inc. entered into an agreement entitled “City of Palo Alto Contract No. C10134341, Agreement Between the City of Palo Alto and OPOWER, Inc. for Professional Services Home Energy Reports” (“Contract”) in which OPOWER, Inc. was to provide 20 Home Energy Reports to residents of the City; and WHEREAS, these reports have been delivered to slightly under 19,000 residential customers on a bi-monthly basis since November 2010; and WHEREAS, customer response to the program has been primarily positive, with less than 1% requesting to be opted out of the program and preliminary results showing annualized electric savings of 2.4%; and WHEREAS, OPOWER, Inc. and the City wish to modify the report formats in early 2012 to allow comparison between City neighborhoods and compare those results; and WHEREAS, this process will need an additional year of implementation in order to review results; and WHEREAS, City Council more than doubled the electric utility’s efficiency goals for the current three year period on May 3, 2010 (CMR 218:10); and WHEREAS, the City and OPOWER, Inc. desire to amend the Contract to meet these goals. The Contract as amended by this First Amendment is referred to herein as the “Amended Agreement.” NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the parties agree: SECTION 1. SCOPE OF SERVICES. Task 9, “Implement Home Energy Reports Program”, of Exhibit A, “Scope of Services”, is hereby amended to read as follows: OPOWER shall deliver the Home Energy Reports to CPAU Designated Customers through an opt-out program. OPOWER shall make the OPOWER Customer Portal available to CPAU Designated Customers. In addition to the type of information that has been set forth on Home Energy Reports sent during the term of the Contract prior to the date hereof, on Home Energy Reports sent after the date of the First Amendment to the Contract, Opower may also include information comparing energy usage between City neighborhoods. Opower will not charge the City for any inclusion of this additional information in Home Energy Reports. 6.b Packet Pg. 74 Task 9 Details: Designated Customers will receive offline Home Energy Reports 10 reports, on average, for an initial period of 20 months, with 12-month extensions subject to mutual signed agreement by Utility and OPOWER. Accompanying the first months’ mailing will be an introductory insert explaining the nature of the program, its duration, and the options for learning more or opting out. Home Energy Reports shall be delivered at an average frequency of no fewer than six reports per Designated Customer per year. The OPOWER Customer Portal will be available to Designated Customers throughout the initial term of the program. CPAU customer service staff will be able to opt-out Designated Customers who call in and request to no longer receive the Home Energy Reports. Optional: Only upon CPAU’s review and approval, OPOWER may source and include 3rd party offers and coupons in the Home Energy Reports to increase their effectiveness and ability to be acted upon. Task 9 Deliverables: Delivery of an average of fourteen (10) reports per year per Designated Customer for 20 months. Over the program duration, 250,000 paper reports will be delivered to CPAU Designated Customers. SECTION 2. TERM. Section 2 of the Contract shall be amended and restated to read as follows: “Exhibit “B1, Schedule of Performance for Additional Energy Efficiency Reports”, is hereby incorporated into this Agreement. The term of this Amended Agreement shall be from the date of its full execution through completion of the services in accordance with the Schedule of Performance attached as Exhibit “B1” unless terminated earlier pursuant to Section 19 of this Agreement.” SECTION 3. NOT TO EXCEED COMPENSATION. Exhibit “C1, Amended Compensation for Additional Energy Efficiency Reports”, is hereby incorporated into this Agreement and shall replace the existing Exhibit “C, Compensation”. SECTION 4. All of the terms and conditions of the original Agreement not modified by this First Amendment shall remain in full force and effect. 6.b Packet Pg. 75 6.b Packet Pg. 76 6.b Packet Pg. 77 6.b Packet Pg. 78 6.b Packet Pg. 79 6.c Packet Pg. 80 6.c Packet Pg. 81 6.c Packet Pg. 82 6.c Packet Pg. 83 6.c Packet Pg. 84 6.c Packet Pg. 85 6.c Packet Pg. 86 6.c Packet Pg. 87 6.c Packet Pg. 88 6.c Packet Pg. 89 6.c Packet Pg. 90 6.c Packet Pg. 91 6.c Packet Pg. 92 6.c Packet Pg. 93 6.c Packet Pg. 94 6.c Packet Pg. 95 6.c Packet Pg. 96 6.c Packet Pg. 97 6.c Packet Pg. 98 6.c Packet Pg. 99 6.c Packet Pg. 100 6.c Packet Pg. 101 6.c Packet Pg. 102 6.c Packet Pg. 103 6.c Packet Pg. 104 6.c Packet Pg. 105 6.c Packet Pg. 106 City of Palo Alto (ID # 2631) Office of the City Clerk City Council CAO Report Meeting Date: 3/12/2012 Report Type: Consent Calendar Title: Request to Cancel City Council Meeting of April 2, 2012 and Call a Special Council Meeting on April 23, 2012 From: Donna Grider, City Clerk The Palo Alto Unified School District spring break this year is from April 2, 2012 through April 6, 2012. Council is respectfully requested to cancel the regular meeting of Monday, April 2, 2012, and call a Special Council meeting for Monday, April 23, 2012. This action would allow both the public and Council Members to have a break to coincide with the School District. 7 Packet Pg. 107 City of Palo Alto (ID # 2420) City Council Staff Report Meeting Date: 3/12/2012 Report Type: Consent Calendar City of Palo Alto Page 1 Title: Approval of a Three Year Wastewater Enterprise Fund Contract with Casey Construction, Inc., in an Amount Not to Exceed $2,070,505 for Wastewater Collection System Maintenance Services From: City Manager Lead Department: Utilities Recommendation Staff recommends that Council approve and authorize the City Manager or his designee to: 1) execute the attached contract with Casey Construction (Attachment A) for an amount not to exceed $2,070,505 and contingency in the amount of $207,050 for a three year contract; 2) exercise the option to continue or terminate the contract over the course of the three years pursuant to Section 16.5; 3) make payments to the contractor of up to $657,600 in the first year, up to $689,900 in the second year and up to $723,005 in the third year, assuming the contractor’s work is satisfactory throughout the life of the contract; 4) negotiate and execute one or more change orders to the contract with Casey Construction for additional related but unforeseen work which may develop during the project, the total value of which shall not exceed 10% of the bid amount for each of the three years. Executive Summary This enterprise contract will provide construction services to supplement City crews in repairing and replacing City-owned wastewater laterals, manholes and mains. When possible, the work under this contract will be coordinated with the annual street paving work performed by Public Works. Background The City’s Gas-Sewer Safety Inspection Program has been underway since July 2011 with the goal of inspecting all sewer laterals throughout the City where a gas line crossbore might exist and if found, immediately removing the crossbore and repairing the gas and sewer lines. As a result of the aggressive pace of wastewater video inspections conducted during this program, 8 Packet Pg. 108 City of Palo Alto Page 2 many older sewer lines have been identified that do not have a crossbore but still need immediate repair and replacement. The work to be performed under the contract is for the emergency and/or critical rehabilitation of these various components of the City of Palo Alto's wastewater collection system. Based on evaluation of the past three years’ data, 40% of sewer blockages are caused by roots. Often root intrusion fractures the clay sewer pipe which may result in structure failure, blockage and overflow. The contract work includes installing or replacing laterals, cleanouts, mainlines and manholes. The contract will be for up to three years, subject to Council approval of the budget for the work each fiscal year and satisfactory contractor performance. Discussion Project Description The work to be performed under the contract involves the installation, repair and replacement of sewer laterals and rehabilitation of various components of the City of Palo Alto's wastewater collection system. This work is being performed by contract because the project resource requirements are beyond the City’s personnel and equipment capacity. This contract is to supplement the City’s current Utilities Wastewater operations structure. As part of the contract, the contractor is required to complete 50 laterals within 90 days of the approval of the contract. The contractor will primarily be assigned time-critical work that is beyond the capacity of current City crews to complete in addition to their longer term maintenance tasks. Description of Bid Process and Results The process used to solicit bids for this proposed three-year contract was slightly different than the City’s usual bid procedure for invitations for bids (IFB). To address the issue of uncertainty about how much critical or other as-needed repair work the contractor may be asked to perform under this contract, staff increased the bid item quantities to include the maximum quantity of that bid item work which might occur within any given year. These total bid item amounts were estimated based on prior experience and project budget. A summary of the bid items is in the Attachment B. Staff has reviewed all bids submitted and recommends that the bid of $657,600 for the first year’s work, as submitted by Casey Construction, be declared the lowest responsive and responsible bidder. Resource Impact The bid includes pricing for a thirty-six month (3-year) agreement. Funds for the first year of this project are included in the FY2011/12 budget. Funding will be requested for the second and third years of the project in the FY 2012/13 and FY 2013/14 budgets. Policy Implications 8 Packet Pg. 109 City of Palo Alto Page 3 The approval of this contract is consistent with existing policies. This recommendation is consistent with the Utilities’ Strategic Plan, especially supporting Objective No. BP3 “replacing infrastructure before the end of its useful life”. Environmental Review This project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guideline Sections 15301 (b) repair and maintenance of existing public utility facilities and 15302 (c) replacement or reconstruction of existing utility facilities involving no expansion of capacity. Attachments: • Attachment8.a: Attachment A: Contract_C12144032.Casey • Attachment8.b: Attachment B_Cost Sheet Summary 8 Packet Pg. 110 Rev. August 3, 2010 CONSTRUCTION CONTRACT Contract No. C12144032 City of Palo Alto and Casey Construction, Inc. PROJECT Wastewater Collection System Maintenance Services 8.a Packet Pg. 111 Rev. August 3, 2010 FILENAME C12144032.Casey.DOC i CONSTRUCTION CONTRACT TABLE OF CONTENTS SECTION 1. INCORPORATION OF RECITALS AND DEFINITIONS....................................2 1.1 Recitals................................................................................................................................2 1.2 Definitions ...........................................................................................................................2 SECTION 2. THE PROJECT ...................................................................................................2 SECTION 3. THE CONTRACT DOCUMENTS........................................................................2 LIST OF DOCUMENTS.....................................................................................................................2 3.2 ORDER OF PRECEDENCE ...............................................................................2 SECTION 4. THE WORK.........................................................................................................2 SECTION 5. PROJECT TEAM ................................................................................................2 SECTION 6. TIME OF COMPLETION.....................................................................................2 6.1 Time Is of Essence .............................................................................................................2 6.2 Commencement of Work ...................................................................................................2 6.3 Contract Time......................................................................................................................2 6.4 Liquidated Damages...........................................................................................................2 6.4.1 Entitlement...................................................................................................................2 6.4.2 Daily Amount................................................................................................................2 6.4.3 Exclusive Remedy........................................................................................................2 6.4.4 Other Remedies...........................................................................................................2 6.5 Adjustments to Contract Time ..........................................................................................2 SECTION 7. COMPENSATION TO CONTRACTOR ..............................................................2 7.1 Contract Sum ......................................................................................................................2 7.2 Full Compensation..............................................................................................................2 7.3 Compensation for Extra or Deleted Work ........................................................................2 7.3.1 Self Performed Work....................................................................................................2 7.3.2 Subcontractors.............................................................................................................2 8.a Packet Pg. 112 Rev. August 3, 2010 C12144032.Casey.DOC ii SECTION 8. STANDARD OF CARE.......................................................................................2 SECTION 9. INDEMNIFICATION ............................................................................................2 9.1 Hold Harmless.....................................................................................................................2 9.2 Survival................................................................................................................................2 SECTION 10 NONDISCRIMINATION ......................................................................................2 SECTION 11. INSURANCE AND BONDS................................................................................2 SECTION 12. PROHIBITION AGAINST TRANSFERS.............................................................2 SECTION 13. NOTICES ............................................................................................................2 13.1 Method of Notice.................................................................................................................2 13.2 Notice Recipients................................................................................................................2 13.3 Change of Address.............................................................................................................2 14.1 Resolution of Contract Disputes.......................................................................................2 14.2 Resolution of Other Disputes............................................................................................2 14.2.1 Non-Contract Disputes.................................................................................................2 14.2.2 Litigation, City Election.................................................................................................2 14.3 Submission of Contract Dispute.......................................................................................2 14.3.1 By Contractor...............................................................................................................2 14.3.2 By City..........................................................................................................................2 14.4 Contract Dispute Resolution Process ..............................................................................2 14.4.1 Direct Negotiations.......................................................................................................2 14.4.2 Deferral of Contract Disputes.......................................................................................2 14.4.3 Mediation......................................................................................................................2 14.4.4 Binding Arbitration........................................................................................................2 14.5 Non-Waiver..........................................................................................................................2 SECTION 15. DEFAULT............................................................................................................2 15.1 Notice of Default .................................................................................................................2 15.2 Opportunity to Cure Default...............................................................................................2 SECTION 16. CITY'S RIGHTS AND REMEDIES......................................................................2 16.1 Remedies Upon Default .....................................................................................................2 16.1.1 Delete Certain Services ...............................................................................................2 16.1.2 Perform and Withhold ..................................................................................................2 8.a Packet Pg. 113 Rev. August 3, 2010 C12144032.Casey.DOC iii 16.1.3 Suspend The Construction Contract............................................................................2 16.1.4 Terminate the Construction Contract for Default..........................................................2 16.1.5 Invoke the Performance Bond......................................................................................2 16.1.6 Additional Provisions....................................................................................................2 16.2 Delays by Sureties..............................................................................................................2 16.3 Damages to City..................................................................................................................2 16.3.1 For Contractor's Default...............................................................................................2 16.3.2 Compensation for Losses ............................................................................................2 16.5 Suspension by City for Convenience ...............................................................................2 16.6 Termination Without Cause...............................................................................................2 16.6.1 Compensation..............................................................................................................2 16.6.2 Subcontractors.............................................................................................................2 16.7 Contractor’s Duties Upon Termination.............................................................................2 SECTION 17. CONTRACTOR'S RIGHTS AND REMEDIES ....................................................2 17.1 Contractor’s Remedies ......................................................................................................2 17.1.1 For Work Stoppage......................................................................................................2 17.1.2. For City's Non-Payment...............................................................................................2 17.2 Damages to Contractor......................................................................................................2 SECTION 18. ACCOUNTING RECORDS.................................................................................2 18.1 Financial Management and City Access...........................................................................2 18.2 Compliance with City Requests ........................................................................................2 SECTION 19. INDEPENDENT PARTIES..................................................................................2 SECTION 20. NUISANCE..........................................................................................................2 SECTION 21. PERMITS AND LICENSES.................................................................................2 SECTION 22. WAIVER..............................................................................................................2 SECTION 23 GOVERNING LAW .............................................................................................2 SECTION 24 COMPLETE AGREEMENT ................................................................................2 SECTION 25 SURVIVAL OF CONTRACT...............................................................................2 SECTION 26 PREVAILING WAGES........................................................................................2 8.a Packet Pg. 114 Rev. August 3, 2010 C12144032.Casey.DOC iv SECTION 27 NON APPROPRIATION .....................................................................................2 SECTION 28 GOVERNMENTAL POWERS.............................................................................2 SECTION 29 ATTORNEY FEES ..............................................................................................2 SECTION 30 SEVERABILITY ..................................................................................................2 8.a Packet Pg. 115 1 Rev. August 3, 2010 C12144032.Casey.DOC CONSTRUCTION CONTRACT THIS CONSTRUCTION CONTRACT entered into on March 5, 2012 (“Execution Date”) by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("City"), and Casey Construction, Inc. ("Contractor"), is made with reference to the following: R E C I T A L S: A. City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of City. B. Contractor is a Class A General Engineering Contractor duly organized and in good standing in the State ofCalifornia, Contractor’s License Number 798190. Contractor represents that it is duly licensed by the State of California and has the background, knowledge, experience and expertise to perform the obligations set forth in this Construction Contract. C. On December 1, 2012, City issued an Invitation for Bids (IFB) to contractors for the Wastewater Collection System Maintenance Services (“Project”). In response to the IFB, Contractor submitted a bid. D. City and Contractor desire to enter into this Construction Contract for the Project, and other services as identified in the Bid Documents for the Project upon the following terms and conditions. NOW THEREFORE, in consideration of the mutual promises and undertakings hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it is mutually agreed by and between the undersigned parties as follows: SECTION 1 INCORPORATION OF RECITALS AND DEFINITIONS. 1.1 Recitals. All of the recitals are incorporated herein by reference. 1.2 Definitions. Capitalized terms shall have the meanings set forth in this Construction Contract and/or in the General Conditions. If there is a conflict between the definitions in this Construction Contract and in the General Conditions, the definitions in this Construction Contract shall prevail. SECTION 2 THE PROJECT. The Project is the construction of the Wastewater Collection System Maintenance Services ("Project"). SECTION 3 THE CONTRACT DOCUMENTS. 3.1 List of Documents. The Contract Documents (sometimes collectively referred to as “Agreement” or “Bid Documents”) consist of the following documents which are on file with the Purchasing Division and are hereby incorporated by reference. 1) Change Orders 2) Field Change Orders 3) Contract 4) Project Plans and Drawings 8.a Packet Pg. 116 Rev. August 3, 2010 C12144032.Casey.DOC 2 5) Technical Specifications 6) Special Provisions 7) Notice Inviting Bids 8) Instructions to Bidders 9) General Conditions 10) Bidding Addenda 11) Invitation for Bids 12) Contractor's Bid/Non-Collusion Affidavit 13) Reports listed in the Bidding Documents 14) Public Works Department’s Standard Drawings and Specifications dated 2007 and updated from time to time 15) Utilities Department’s Water, Gas, Wastewater, Electric Utilities Standards dated 2005 and updated from time to time 16) City of Palo Alto Traffic Control Requirements 17) City of Palo Alto Truck Route Map and Regulations 18) Notice Inviting Pre-Qualification Statements, Pre-Qualification Statement, and Pre- Qualification Checklist (if applicable) 19) Performance and Payment Bonds 20) Insurance Forms 3.2 Order of Precedence. For the purposes of construing, interpreting and resolving inconsistencies between and among the provisions of this Contract, the Contract Documents shall have the order of precedence as set forth in the preceding section. If a claimed inconsistency cannot be resolved through the order of precedence, the City shall have the sole power to decide which document or provision shall govern as may be in the best interests of the City. SECTION 4 THE WORK. The Work includes all labor, materials, equipment, services, permits, fees, licenses and taxes, and all other things necessary for Contractor to perform its obligations and complete the Project, including, without limitation, any Changes approved by City, in accordance with the Contract Documents and all Applicable Code Requirements. SECTION 5 PROJECT TEAM. In addition to Contractor, City has retained, or may retain, consultants and contractors to provide professional and technical consultation for the design and construction of the Project. The Project requires that Contractor operate efficiently, effectively and cooperatively with City as well as all other members of the Project Team and other contractors retained by City to construct other portions of the Project. 8.a Packet Pg. 117 Rev. August 3, 2010 C12144032.Casey.DOC 3 SECTION 6 TIME OF COMPLETION. 6.1 Time Is of Essence. Time is of the essence with respect to all time limits set forth in the Contract Documents. 6.2 Commencement of Work. Contractor shall commence the Work on the date specified in City’s Notice to Proceed. 6.3 Contract Time. Work hereunder shall begin on the date specified on the City’s Notice to Proceed and shall be completed within three years (3 years) after the commencement date specified in City’s Notice to Proceed. 6.4 Liquidated Damages. 6.4.1 Entitlement. City and Contractor acknowledge and agree that if Contractor fails to fully and satisfactorily complete the Work within the Contract Time, City will suffer, as a result of Contractor’s failure, substantial damages which are both extremely difficult and impracticable to ascertain. Such damages may include, but are not limited to: (i) Loss of public confidence in City and its contractors and consultants. (ii) Loss of public use of public facilities. (iii) Extended disruption to public. 6.4.2 Daily Amount. City and Contractor have reasonably endeavored, but failed, to ascertain the actual damage that City will incur if Contractor fails to achieve Substantial Completion of the entire Work within the Contract Time. Therefore, the parties agree that in addition to all other damages to which City may be entitled other than delay damages, in the event Contractor shall fail to achieve Substantial Completion of the entire Work within the Contract Time, Contractor shall pay City as liquidated damages the amount of $500 per day for each Day occurring after the expiration of the Contract Time until Contractor achieves Substantial Completion of the entire Work. The liquidated damages amount is not a penalty but considered to be a reasonable estimate of the amount of damages City will suffer by delay in completion of the Work. 6.4.3 Exclusive Remedy. City and Contractor acknowledge and agree that this liquidated damages provision shall be City’s only remedy for delay damages caused by Contractor’s failure to achieve Substantial Completion of the entire Work within the Contract Time. 6.4.4 Other Remedies. City is entitled to any and all available legal and equitable remedies City may have where City’s Losses are caused by any reason other than Contractor’s failure to achieve Substantial Completion of the entire Work within the Contract Time. 6.5 Adjustments to Contract Time. The Contract Time may only be adjusted for time extensions approved by City and agreed to by Change Order executed by City and Contractor in accordance with the requirements of the Contract Documents. SECTION 7 COMPENSATION TO CONTRACTOR. 7.1 Contract Sum. Contractor shall be compensated for satisfactory completion of the Work in compliance with the Contract Documents in the Not-to-exceed Contract Sum of Two Million Seventy Thousand Five Hundred Five Dollars ($2,070,505). 8.a Packet Pg. 118 4 Rev. August 3, 2010 C12144032.Casey.DOC 7.2 Full Compensation. The Contract Sum shall be full compensation to Contractor for all Work provided by Contractor and, except as otherwise expressly permitted by the terms of the Contract Documents, shall cover all Losses arising out of the nature of the Work or from the acts of the elements or any unforeseen difficulties or obstructions which may arise or be encountered in performance of the Work until its Acceptance by City, all risks connected with the Work, and any and all expenses incurred due to suspension or discontinuance of the Work. The Contract Sum may only be adjusted for Change Orders issued, executed and satisfactorily performed in accordance with the requirements of the Contract Documents. 7.3 Compensation for Extra or Deleted Work. The Contract Sum shall be adjusted (either by addition or credit) for Changes in the Work involving Extra Work or Deleted Work based on one or more of the following methods to be selected by City: 1. Unit prices stated in the Contract Documents or agreed upon by City and Contractor, which unit prices shall be deemed to include Contractor Markup and Subcontractor/Sub-subcontractor Markups permitted by this Section. 2. A lump sum agreed upon by City and Contractor, based on the estimated Allowable Costs and Contractor Markup and Subcontractor Markup computed in accordance with this Section. 3. Contractor’s Allowable Costs, plus Contractor Markup and Subcontractor Markups applicable to such Extra Work computed in accordance with this Section. Contractor Markup and Subcontractor/Sub-subcontractor Markups set forth herein are the full amount of compensation to be added for Extra Work or to be subtracted for Deleted Work that is attributable to overhead (direct and indirect) and profit of Contractor and of its Subcontractors and Sub-subcontractors, of every Tier. When using this payment methodology, Contractor Markup and Subcontractor/Sub-subcontractor Markups, which shall not be compounded, shall be computed as follows: 7.3.1 Markup Self-Performed Work. 10% of the Allowable Costs for that portion of the Extra Work or Deleted Work to be performed by Contractor with its own forces. 7.3.2 Markup for Work Performed by Subcontractors. 15% of the Allowable Costs for that portion of the Extra Work or Deleted Work to be performed by a first Tier Subcontractor. SECTION 8 STANDARD OF CARE. Contractor agrees that the Work shall be performed by qualified, experienced and well-supervised personnel. All services performed in connection with this Construction Contract shall be performed in a manner consistent with the standard of care under California law applicable to those who specialize in providing such services for projects of the type, scope and complexity of the Project. SECTION 9 INDEMNIFICATION. 9.1 Hold Harmless. To the fullest extent allowed by law, Contractor will defend, indemnify, and hold harmless City, its City Council, boards and commissions, officers, agents, employees, representatives and volunteers (hereinafter collectively referred to as "Indemnitees"), through legal counsel acceptable to City, from and against any and all Losses arising directly or indirectly from, or in any manner relating to any of, the following: (i) Performance or nonperformance of the Work by Contractor or its Subcontractors or Sub-subcontractors, of any tier; 8.a Packet Pg. 119 Rev. August 3, 2010 C12144032.Casey.DOC 5 (ii) Performance or nonperformance by Contractor or its Subcontractors or Sub- subcontractors of any tier, of any of the obligations under the Contract Documents; (iii) The construction activities of Contractor or its Subcontractors or Sub-subcontractors, of any tier, either on the Site or on other properties; (iv) The payment or nonpayment by Contractor to any of its employees, Subcontractors or Sub-subcontractors of any tier, for Work performed on or off the Site for the Project; and (v) Any personal injury, property damage or economic loss to third persons associated with the performance or nonperformance by Contractor or its Subcontractors or Sub- subcontractors of any tier, of the Work. However, nothing herein shall obligate Contractor to indemnify any Indemnitee for Losses resulting from the sole or active negligence or willful misconduct of the Indemnitee. Contractor shall pay City for any costs City incurs to enforce this provision. Nothing in the Contract Documents shall be construed to give rise to any implied right of indemnity in favor of Contractor against City or any other Indemnitee. 9.2 Survival. The provisions of Section 9 shall survive the termination of this Construction Contract. SECTION 10 NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, Contractor certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. Contractor acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and will comply with all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. SECTION 11 INSURANCE AND BONDS. On or before the Execution Date, Contractor shall provide City with evidence that it has obtained insurance and Performance and Payment Bonds satisfying all requirements in Article 11 of the General Conditions. Failure to do so shall be deemed a material breach of this Construction Contract. SECTION 12 PROHIBITION AGAINST TRANSFERS. City is entering into this Construction Contract based upon the stated experience and qualifications of the Contractor and its subcontractors set forth in Contractor’s Bid. Accordingly, Contractor shall not assign, hypothecate or transfer this Construction Contract or any interest therein directly or indirectly, by operation of law or otherwise without the prior written consent of City. Any assignment, hypothecation or transfer without said consent shall be null and void. The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of Contractor or of any general partner or joint venturer or syndicate member of Contractor, if the Contractor is a partnership or joint venture or syndicate or co-tenancy shall result in changing the control of Contractor, shall be construed as an assignment of this Construction Contract. Control means more than fifty percent (50%) of the voting power of the corporation or other entity. 8.a Packet Pg. 120 Rev. August 3, 2010 C12144032.Casey.DOC 6 SECTION 13 NOTICES. 13.1 Method of Notice. All notices, demands, requests or approvals to be given under this Construction Contract shall be given in writing and shall be deemed served on the earlier of the following: (i) On the date delivered if delivered personally; (ii) On the third business day after the deposit thereof in the United States mail, postage prepaid, and addressed as hereinafter provided; (iii) On the date sent if sent by facsimile transmission; (iv) On the date sent if delivered by electronic mail; or (iv) On the date it is accepted or rejected if sent by certified mail. 13.2 Notice Recipients. All notices, demands or requests (including, without limitation, Claims) from Contractor to City shall include the Project name and the number of this Construction Contract and shall be addressed to City at: To City: City of Palo Alto City Clerk 250 Hamilton Avenue P.O. Box 10250 Palo Alto, CA 94303 Copy to: City of Palo Alto Public Works Administration 250 Hamilton Avenue Palo Alto, CA 94301 Attn: Or City of Palo Alto Utilities Engineering 3201 East Bayshore Road Palo Alto, CA 94303 Attn: Javad Ghaffari In addition, copies of all Claims by Contractor under this Construction Contract shall be provided to the following: Palo Alto City Attorney’s Office 250 Hamilton Avenue P.O. Box 10250 Palo Alto, California 94303 All Claims shall be delivered personally or sent by certified mail. All notices, demands, requests or approvals from City to Contractor shall be addressed to: Javad Ghaffari 13.3 Change of Address. In the event of any change of address, the moving party shall notify the other party of the change of address in writing. Each party may, by written notice only, add, delete or replace any individuals to whom and addresses to which notice shall be provided. 8.a Packet Pg. 121 Rev. August 3, 2010 C12144032.Casey.DOC 7 SECTION 14 DISPUTE RESOLUTION. 14.1 Resolution of Contract Disputes. Contract Disputes shall be resolved by the parties in accordance with the provisions of this Section 14, in lieu of any and all rights under the law that either party have its rights adjudged by a trial court or jury. All Contract Disputes shall be subject to the Contract Dispute Resolution Process set forth in this Section 14, which shall be the exclusive recourse of Contractor and City for such Contract Disputes. 14.2 Resolution of Other Disputes. 14.2.1 Non-Contract Disputes. Contract Disputes shall not include any of the following: (i) Penalties or forfeitures prescribed by statute or regulation imposed by a governmental agency; (ii) Third party tort claims for personal injury, property damage or death relating to any Work performed by Contractor or its Subcontractors or Sub- subcontractors of any tier; (iii) False claims liability under California Government Code Section 12650, et. seq.; (iv) Defects in the Work first discovered by City after Final Payment by City to Contractor; (v) Stop notices; or (vi) The right of City to specific performance or injunctive relief to compel performance of any provision of the Contract Documents. 14.2.2 Litigation, City Election. Matters that do not constitute Contract Disputes shall be resolved by way of an action filed in the Superior Court of the State of California, County of Santa Clara, and shall not be subject to the Contract Dispute Resolution Process. However, the City reserves the right, in its sole and absolute discretion, to treat such disputes as Contract Disputes. Upon written notice by City of its election as provided in the preceding sentence, such dispute shall be submitted by the parties and finally decided pursuant to the Contract Dispute Resolution Process in the manner as required for Contract Disputes, including, without limitation, City’s right under Paragraph 14.4.2 to defer resolution and final determination until after Final Completion of the Work. 14.3 Submission of Contract Dispute. 14.3.1 By Contractor. Contractors may commence the Contract Dispute Resolution Process upon City's written response denying all or part of a Claim pursuant to Paragraph 4.2.9 or 4.2.10 of the General Conditions. Contractor shall submit a written Statement of Contract Dispute (as set forth below) to City within seven (7) Days after City rejects all or a portion of Contractor's Claim. Failure by Contractor to submit its Statement of Contract Dispute in a timely manner shall result in City’s decision by City on the Claim becoming final and binding. Contractor’s Statement of Contract Dispute shall be signed under penalty of perjury and shall state with specificity the events or circumstances giving rise to the Contract Dispute, the dates of their occurrence and the asserted effect on the Contract Sum and the Contract Time. The Statement of Contract Dispute shall include adequate supporting data to substantiate the disputed Claim. Adequate supporting data for a Contract Dispute relating to an adjustment of the Contract Time shall include both of the following: (i) All of the scheduling data required to be submitted by Contractor under the Contract Documents to obtain extensions of time and adjustments to the Contract Time and (ii) A detailed, event-by-event description of the impact of each event on completion of Work. Adequate data to support a Statement of Contract 8.a Packet Pg. 122 Rev. August 3, 2010 C12144032.Casey.DOC 8 Dispute involving an adjustment of the Contract Sum must include both of the following: (a) A detailed cost breakdown and (b) Supporting cost data in such form and including such information and other supporting data as required under the Contract Documents for submission of Change Order Requests and Claims. 14.3.2 By City. City's right to commence the Contract Dispute Resolution Process shall arise at any time following City's actual discovery of the circumstances giving rise to the Contract Dispute. City asserts Contract Disputes in response to a Contract Dispute asserted by Contractor. A Statement of Contract Dispute submitted by City shall state the events or circumstances giving rise to the Contract Dispute, the dates of their occurrence and the damages or other relief claimed by City as a result of such events. 14.4 Contract Dispute Resolution Process. The parties shall utilize each of the following steps in the Contract Dispute Resolution Process in the sequence they appear below. Each party shall participate fully and in good faith in each step in the Contract Dispute Resolution Process, and good faith effort shall be a condition precedent to the right of each party to proceed to the next step in the process. 14.4.1 Direct Negotiations. Designated representatives of City and Contractor shall meet as soon as possible (but not later than ten (10) Days after receipt of the Statement of Contract Dispute) in a good faith effort to negotiate a resolution to the Contract Dispute. Each party shall be represented in such negotiations by an authorized representative with full knowledge of the details of the Claims or defenses being asserted by such party in the negotiations, and with full authority to resolve such Contract Dispute then and there, subject only to City’s obligation to obtain administrative and/or City Council approval of any agreed settlement or resolution. If the Contract Dispute involves the assertion of a right or claim by a Subcontractor or Sub-subcontractor, of any tier, against Contractor that is in turn being asserted by Contractor against City (“Pass-Through Claim”), then the Subcontractor or Sub-Subcontractor shall also have a representative attend the negotiations, with the same authority and knowledge as described above. Upon completion of the meeting, if the Contract Dispute is not resolved, the parties may either continue the negotiations or any party may declare negotiations ended. All discussions that occur during such negotiations and all documents prepared solely for the purpose of such negotiations shall be confidential and privileged pursuant to California Evidence Code Sections 1119 and 1152. 14.4.2 Deferral of Contract Disputes. Following the completion of the negotiations required by Paragraph 14.4.1, all unresolved Contract Disputes shall be deferred pending Final Completion of the Project, subject to City’s right, in its sole and absolute discretion, to require that the Contract Dispute Resolution Process proceed prior to Final Completion. All Contract Disputes that have been deferred until Final Completion shall be consolidated within a reasonable time after Final Completion and thereafter pursued to resolution pursuant to this Contract Dispute Resolution Process. The parties can continue informal negotiations of Contract Disputes; provided, however, that such informal negotiations shall not be alter the provisions of the Agreement deferring final determination and resolution of unresolved Contract Disputes until after Final Completion. 14.4.3 Mediation. If the Contract Dispute remains unresolved after negotiations pursuant to Paragraph 14.4.1, the parties shall submit the Contract Dispute to non-binding mediation before a mutually acceptable third party mediator. 8.a Packet Pg. 123 Rev. August 3, 2010 C12144032.Casey.DOC 9 .1 Qualifications of Mediator. The parties shall endeavor to select a mediator who is a retired judge or an attorney with at least five (5) years of experience in public works construction contract law and in mediating public works construction disputes. In addition, the mediator shall have at least twenty (20) hours of formal training in mediation skills. .2 Submission to Mediation and Selection of Mediator. The party initiating mediation of a Contract Dispute shall provide written notice to the other party of its decision to mediate. In the event the parties are unable to agree upon a mediator within fifteen (15) Days after the receipt of such written notice, then the parties shall submit the matter to the American Arbitration Association (AAA) at its San Francisco Regional Office for selection of a mediator in accordance with the AAA Construction Industry Mediation Rules. .3 Mediation Process. The location of the mediation shall be at the offices of City. The costs of mediation shall be shared equally by both parties. The mediator shall provide an independent assessment on the merits of the Contract Dispute and recommendations for resolution. All discussions that occur during the mediation and all documents prepared solely for the purpose of the mediation shall be confidential and privileged pursuant to California Evidence Code Sections 1119 and 1152. 14.4.4 Binding Arbitration. If the Contract Dispute is not resolved by mediation, then any party may submit the Contract Dispute for final and binding arbitration pursuant to the provisions of California Public Contract Code Sections 10240, et seq. The award of the arbitrator therein shall be final and may be entered as a judgment by any court of competent jurisdiction. Such arbitration shall be conducted in accordance with the following: .1 Arbitration Initiation. The arbitration shall be initiated by filing a complaint in arbitration in accordance with the regulations promulgated pursuant to California Public Contract Code Section 10240.5. .2 Qualifications of the Arbitrator. The arbitrator shall be approved by all parties. The arbitrator shall be a retired judge or an attorney with at least five (5) years of experience in public works construction contract law and in arbitrating public works construction disputes. In addition, the arbitrator shall have at least twenty (20) hours of formal training in arbitration skills. In the event the parties cannot agree upon an arbitrator, the provisions of California Public Contract Code Section 10240.3 shall be followed in selecting an arbitrator possessing the qualifications required herein. .3 Hearing Days and Location. Arbitration hearings shall be held at the offices of City and shall, except for good cause shown to and determined by the arbitrator, be conducted on consecutive business days, without interruption or continuance. .4 Hearing Delays. Arbitration hearings shall not be delayed except upon good cause shown. .5 Recording Hearings. All hearings to receive evidence shall be recorded by a certified stenographic reporter, with the costs thereof borne equally by City and Contractor and allocated by the arbitrator in the final award. 8.a Packet Pg. 124 Rev. August 3, 2010 C12144032.Casey.DOC 10 .6 Limitation of Depositions. The parties may conduct discovery in accordance with the provisions of section 10240.11 of the Public Contract Code; provided, however, that depositions shall be limited to both of the following: (i) Ten (10) percipient witnesses for each party and 5 expert witnesses per party. Upon a showing of good cause, the arbitrator may increase the number of permitted depositions. An individual who is both percipient and expert shall, for purposes of applying the foregoing numerical limitation only, be deemed an expert. Expert reports shall be exchanged prior to receipt of evidence, in accordance with the direction of the arbitrator, and expert reports (including initial and rebuttal reports) not so submitted shall not be admissible as evidence. .7 Authority of the Arbitrator. The arbitrator shall have the authority to hear dispositive motions and issue interim orders and interim or executory awards. .8 Waiver of Jury Trial. Contractor and City each voluntarily waives its right to a jury trial with respect to any Contract Dispute that is subject to binding arbitration in accordance with the provisions of this Paragraph 14.4.4. Contractor shall include this provision in its contracts with its Subcontractors who provide any portion of the Work. 14.5 Non-Waiver. Participation in the Contract Dispute Resolution Process shall not waive, release or compromise any defense of City, including, without limitation, any defense based on the assertion that the rights or Claims of Contractor that are the basis of a Contract Dispute were previously waived by Contractor due to Contractor’s failure to comply with the Contract Documents, including, without limitation, Contractor’s failure to comply with any time periods for providing notice of requests for adjustments of the Contract Sum or Contract Time or for submission of Claims or supporting documentation of Claims. SECTION 15 DEFAULT. 15.1 Notice of Default. In the event that City determines, in its sole discretion, that Contractor has failed or refused to perform any of the obligations set forth in the Contract Documents, or is in breach of any provision of the Contract Documents, City may give written notice of default to Contractor in the manner specified for the giving of notices in the Construction Contract. 15.2 Opportunity to Cure Default. Except for emergencies, Contractor shall cure any default in performance of its obligations under the Contract Documents within two (2) Days (or such shorter time as City may reasonably require) after receipt of written notice. However, if the breach cannot be reasonably cured within such time, Contractor will commence to cure the breach within two (2) Days (or such shorter time as City may reasonably require) and will diligently and continuously prosecute such cure to completion within a reasonable time, which shall in no event be later than ten (10) Days after receipt of such written notice. SECTION 16 CITY'S RIGHTS AND REMEDIES. 16.1 Remedies Upon Default. If Contractor fails to cure any default of this Construction Contract within the time period set forth above in Section 15, then City may pursue any remedies available under law or equity, including, without limitation, the following: 8.a Packet Pg. 125 Rev. August 3, 2010 C12144032.Casey.DOC 11 16.1.1 Delete Certain Services. City may, without terminating the Construction Contract, delete certain portions of the Work, reserving to itself all rights to Losses related thereto. 16.1.2 Perform and Withhold. City may, without terminating the Construction Contract, engage others to perform the Work or portion of the Work that has not been adequately performed by Contractor and withhold the cost thereof to City from future payments to Contractor, reserving to itself all rights to Losses related thereto. 16.1.3 Suspend The Construction Contract. City may, without terminating the Construction Contract and reserving to itself all rights to Losses related thereto, suspend all or any portion of this Construction Contract for as long a period of time as City determines, in its sole discretion, appropriate, in which event City shall have no obligation to adjust the Contract Sum or Contract Time, and shall have no liability to Contractor for damages if City directs Contractor to resume Work. 16.1.4 Terminate the Construction Contract for Default. City shall have the right to terminate this Construction Contract, in whole or in part, upon the failure of Contractor to promptly cure any default as required by Section 15. City’s election to terminate the Construction Contract for default shall be communicated by giving Contractor a written notice of termination in the manner specified for the giving of notices in the Construction Contract. Any notice of termination given to Contractor by City shall be effective immediately, unless otherwise provided therein. 16.1.5 Invoke the Performance Bond. City may, with or without terminating the Construction Contract and reserving to itself all rights to Losses related thereto, exercise its rights under the Performance Bond. 16.1.6 Additional Provisions. All of City’s rights and remedies under this Construction Contract are cumulative, and shall be in addition to those rights and remedies available in law or in equity. Designation in the Contract Documents of certain breaches as material shall not waive the City’s authority to designate other breaches as material nor limit City’s right to terminate the Construction Contract, or prevent the City from terminating the Agreement for breaches that are not material. City’s determination of whether there has been noncompliance with the Construction Contract so as to warrant exercise by City of its rights and remedies for default under the Construction Contract, shall be binding on all parties. No termination or action taken by City after such termination shall prejudice any other rights or remedies of City provided by law or equity or by the Contract Documents upon such termination; and City may proceed against Contractor to recover all liquidated damages and Losses suffered by City. 16.2 Delays by Sureties. Without limiting to any of City’s other rights or remedies, City has the right to suspend the performance of the Work by Contractor’s sureties in the event of any of the following: (i) The sureties’ failure to begin Work within a reasonable time in such manner as to insure full compliance with the Construction Contract within the Contract Time; (ii) The sureties’ abandonment of the Work; (iii) If at any time City is of the opinion the sureties’ Work is unnecessarily or unreasonably delaying the Work; (iv) The sureties’ violation of any terms of the Construction Contract; (v) The sureties’ failure to perform according to the Contract Documents; or (vi) The sureties’ failure to follow City’s instructions for completion of the Work within the Contract Time. 8.a Packet Pg. 126 Rev. August 3, 2010 C12144032.Casey.DOC 12 16.3 Damages to City. 16.3.1 For Contractor's Default. City will be entitled to recovery of all Losses under law or equity in the event of Contractor’s default under the Contract Documents. 16.3.2 Compensation for Losses. In the event that City's Losses arise from Contractor’s default under the Contract Documents, City shall be entitled to withhold monies otherwise payable to Contractor until Final Completion of the Project. If City incurs Losses due to Contractor’s default, then the amount of Losses shall be deducted from the amounts withheld. Should the amount withheld exceed the amount deducted, the balance will be paid to Contractor or its designee upon Final Completion of the Project. If the Losses incurred by City exceed the amount withheld, Contractor shall be liable to City for the difference and shall promptly remit same to City. 16.4 Suspension by City for Convenience. City may, at any time and from time to time, without cause, order Contractor, in writing, to suspend, delay, or interrupt the Work in whole or in part for such period of time, up to an aggregate of fifty percent (50%) of the Contract Time. The order shall be specifically identified as a Suspension Order by City. Upon receipt of a Suspension Order, Contractor shall, at City’s expense, comply with the order and take all reasonable steps to minimize costs allocable to the Work covered by the Suspension Order. During the Suspension or extension of the Suspension, if any, City shall either cancel the Suspension Order or, by Change Order, delete the Work covered by the Suspension Order. If a Suspension Order is canceled or expires, Contractor shall resume and continue with the Work. A Change Order will be issued to cover any adjustments of the Contract Sum or the Contract Time necessarily caused by such suspension. A Suspension Order shall not be the exclusive method for City to stop the Work. 16.5 Termination Without Cause. City may, at its sole discretion and without cause, terminate this Construction Contract in part or in whole by giving thirty (30) Days written notice to Contractor. The compensation allowed under this Paragraph 16.5 shall be the Contractor’s sole and exclusive compensation for such termination and Contractor waives any claim for other compensation or Losses, including, but not limited to, loss of anticipated profits, loss of revenue, lost opportunity, or other consequential, direct, indirect or incidental damages of any kind resulting from termination without cause. 16.5.1 Compensation. Following such termination and within forty-five (45) Days after receipt of a billing from Contractor seeking payment of sums authorized by this Paragraph 16.5, City shall pay the following to Contractor as Contractor’s sole compensation for performance of the Work : .1 For Work Performed. The amount of the Contract Sum allocable to the portion of the Work properly performed by Contractor as of the date of termination, less sums previously paid to Contractor. .2 For Close-out Costs. Reasonable costs of Contractor and its Subcontractors and Sub-subcontractors for: (i) Demobilizing and (ii) Administering the close-out of its participation in the Project (including, without limitation, all billing and accounting functions, not including attorney or expert fees) for a period of no longer than thirty (30) Days after receipt of the notice of termination. 8.a Packet Pg. 127 Rev. August 3, 2010 C12144032.Casey.DOC 13 .3 For Fabricated Items. Previously unpaid cost of any items delivered to the Project Site which were fabricated for subsequent incorporation in the Work. 16.5.2 Subcontractors. Contractor shall include provisions in all of its subcontracts, purchase orders and other contracts permitting termination for convenience by Contractor on terms that are consistent with this Construction Contract and that afford no greater rights of recovery against Contractor than are afforded to Contractor against City under this Section. 16.6 Contractor’s Duties Upon Termination. Upon receipt of a notice of termination for default or for convenience, Contractor shall, unless the notice directs otherwise, do the following: (i) Immediately discontinue the Work to the extent specified in the notice; (ii) Place no further orders or subcontracts for materials, equipment, services or facilities, except as may be necessary for completion of such portion of the Work that is not discontinued; (iii) Provide to City a description, in writing no later than fifteen (15) days after receipt of the notice of termination, of all subcontracts, purchase orders and contracts that are outstanding, including, without limitation, the terms of the original price, any changes, payments, balance owing, the status of the portion of the Work covered and a copy of the subcontract, purchase order or contract and any written changes, amendments or modifications thereto, together with such other information as City may determine necessary in order to decide whether to accept assignment of or request Contractor to terminate the subcontract, purchase order or contract; (iv) Promptly assign to City those subcontracts, purchase orders or contracts, or portions thereof, that City elects to accept by assignment and cancel, on the most favorable terms reasonably possible, all subcontracts, purchase orders or contracts, or portions thereof, that City does not elect to accept by assignment; and (v) Thereafter do only such Work as may be necessary to preserve and protect Work already in progress and to protect materials, plants, and equipment on the Project Site or in transit thereto. SECTION 17 CONTRACTOR'S RIGHTS AND REMEDIES. 17.1 Contractor’s Remedies. Contractor may terminate this Construction Contract only upon the occurrence of one of the following: 17.1.1 For Work Stoppage. The Work is stopped for sixty (60) consecutive Days, through no act or fault of Contractor, any Subcontractor, or any employee or agent of Contractor or any Subcontractor, due to issuance of an order of a court or other public authority other than City having jurisdiction or due to an act of government, such as a declaration of a national emergency making material unavailable. This provision shall not apply to any work stoppage resulting from the City’s issuance of a suspension notice issued either for cause or for convenience. 17.1.2 For City's Non-Payment. If City does not make pay Contractor undisputed sums within ninety (90) Days after receipt of notice from Contractor, Contractor may terminate the Construction Contract (30) days following a second notice to City of Contractor’s intention to terminate the Construction Contract. 8.a Packet Pg. 128 Rev. August 3, 2010 C12144032.Casey.DOC 14 17.2 Damages to Contractor. In the event of termination for cause by Contractor, City shall pay Contractor the sums provided for in Paragraph 16.5.1 above. Contractor agrees to accept such sums as its sole and exclusive compensation and agrees to waive any claim for other compensation or Losses, including, but not limited to, loss of anticipated profits, loss of revenue, lost opportunity, or other consequential, direct, indirect and incidental damages, of any kind. SECTION 18 ACCOUNTING RECORDS. 18.1 Financial Management and City Access. Contractor shall keep full and detailed accounts and exercise such controls as may be necessary for proper financial management under this Construction Contract in accordance with generally accepted accounting principles and practices. City and City's accountants during normal business hours, may inspect, audit and copy Contractor's records, books, estimates, take-offs, cost reports, ledgers, schedules, correspondence, instructions, drawings, receipts, subcontracts, purchase orders, vouchers, memoranda and other data relating to this Project. Contractor shall retain these documents for a period of three (3) years after the later of (i) final payment or (ii) final resolution of all Contract Disputes and other disputes, or (iii) for such longer period as may be required by law. 18.2 Compliance with City Requests. Contractor's compliance with any request by City pursuant to this Section 18 shall be a condition precedent to filing or maintenance of any legal action or proceeding by Contractor against City and to Contractor's right to receive further payments under the Contract Documents. City many enforce Contractor’s obligation to provide access to City of its business and other records referred to in Section 18.1 for inspection or copying by issuance of a writ or a provisional or permanent mandatory injunction by a court of competent jurisdiction based on affidavits submitted to such court, without the necessity of oral testimony. SECTION 19 INDEPENDENT PARTIES. Each party is acting in its independent capacity and not as agents, employees, partners, or joint venturers of the other party. City, its officers or employees shall have no control over the conduct of Contractor or its respective agents, employees, subconsultants, or subcontractors, except as herein set forth. SECTION 20 NUISANCE. Contractor shall not maintain, commit, nor permit the maintenance or commission of any nuisance in connection in the performance of services under this Construction Contract. SECTION 21 PERMITS AND LICENSES. Except as otherwise provided in the Special Provisions and Technical Specifications, The Contractor shall provide, procure and pay for all licenses, permits, and fees, required by the City or other government jurisdictions or agencies necessary to carry out and complete the Work. Payment of all costs and expenses for such licenses, permits, and fees shall be included in one or more Bid items. No other compensation shall be paid to the Contractor for these items or for delays caused by non-City inspectors or conditions set forth in the licenses or permits issued by other agencies. SECTION 22 WAIVER. A waiver by either party of any breach of any term, covenant, or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained herein, whether of the same or a different character. 8.a Packet Pg. 129 Rev. August 3, 2010 C12144032.Casey.DOC 15 SECTION 23 GOVERNING LAW. This Construction Contract shall be construed in accordance with and governed by the laws of the State of California. SECTION 24 COMPLETE AGREEMENT. This Agreement represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This Agreement may be amended only by a written instrument, which is signed by the parties. SECTION 25 SURVIVAL OF CONTRACT. The provisions of the Construction Contract which by their nature survive termination of the Construction Contract or Final Completion, including, without limitation, all warranties, indemnities, payment obligations, and City’s right to audit Contractor’s books and records, shall remain in full force and effect after Final Completion or any termination of the Construction Contract. SECTION 26 PREVAILING WAGES. This Project is not subject to prevailing wages. The Contractor is not required to pay prevailing wages in the performance and implementation of the Project, because the City, pursuant to its authority as a chartered city, has adopted Resolution No. 5981 exempting the City from prevailing wages. The City invokes the exemption from the state prevailing wage requirement for this Project and declares that the Project is funded one hundred percent (100%) by the City of Palo Alto. SECTION 27 NON APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that the City does not appropriate funds for the following fiscal year for this event, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Construction Contract are no longer available. This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 28 AUTHORITY. The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. SECTION 29 ATTORNEY FEES. Each Party shall bear its own costs, including attorney’s fees through the completion of mediation. If the claim or dispute is not resolved through mediation and in any dispute described in Paragraph 14.2, the prevailing party in any action brought to enforce the provision of this Agreement may recover its reasonable costs and attorney’s fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorney’s’ fees paid to third parties. SECTION 30 SEVERABILITY. In case a provision of this Construction Contract is held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not be affected. 8.a Packet Pg. 130 Rev. August 3, 2010 C12144032.Casey.DOC 17 IN WITNESS WHEREOF, the parties have caused this Construction Contract to be executed the date and year first above written. CITY OF PALO ALTO ____________________________ City Manager APPROVED AS TO FORM: ___________________________ Senior Asst. City Attorney CASEY CONSTRUCTION, INC. By:___________________________ Name:_________________________ Title:________________________ 8.a Packet Pg. 131 City of Palo Alto, Utilities Operations - January 10, 2012 IFB # 144032 3-Year Wastewater Collection Services Bid Item Description Qty.Unit Unit Price Total Unit Price Total Unit Price Total Unit Price Total 1 Removing and Replacing Existing 4” Sanitary Sewer Service Lateral 70 EA $7,681 $537,670 $4,200 $294,000 $9,890 $692,300 $3,200 $224,000 2 Removing and Replacing Existing 6” Sanitary Sewer Service Lateral 10 EA $8,038 $80,380 $4,400 $44,000 $9,120 $91,200 $3,500 $35,000 3 Removing Existing Sanitary Sewer Main and Replacing with 6” Sanitary Sewer Main 500 LF $129 $64,500 $205 $102,500 $130 $65,000 $88 $44,000 4 Removing Existing Sanitary Sewer Main and Replacing with 8” Sanitary Sewer Main 500 LF $132 $66,000 $210 $105,000 $132 $66,000 $92 $46,000 5 Removing Existing Sanitary Sewer Main and Replacing with 10” Sanitary Sewer Main 500 LF $146 $73,000 $215 $107,500 $143 $71,500 $100 $50,000 6 Removing Existing Sanitary Sewer Main and Replacing with 12” Sanitary Sewer Main 500 LF $152 $76,000 $220 $110,000 $149 $74,500 $106 $53,000 7 Removing Existing Sanitary Sewer Main and Replacing with 15” Sanitary Sewer Main 250 LF $190 $47,500 $240 $60,000 $193 $48,250 $140 $35,000 8 Spot Repair 6” to 10” Sewer Main 5 EA $4,500 $22,500 $2,800 $14,000 $6,680 $33,400 $3,000 $15,000 9 Spot Repair 12” to 15” Sewer Main 5 EA $5,000 $25,000 $3,000 $15,000 $7,040 $35,200 $3,400 $17,000 10 Replacing a 48” dia. Manhole 2 EA $9,690 $19,380 $7,500 $15,000 $13,000 $26,000 $4,800 $9,600 11 Replacing a 60” dia. Manhole 2 EA $11,628 $23,256 $10,500 $21,000 $13,400 $26,800 $5,000 $10,000 12 Removing a 48” dia. Manhole 7 EA $7,122 $49,854 $4,000 $28,000 $7,240 $50,680 $2,000 $14,000 13 Removing a 60” dia. Manhole 2 EA $8,547 $17,094 $4,500 $9,000 $7,860 $15,720 $2,000 $4,000 14 Constructing a New 48” dia. Manhole 7 EA $9,690 $67,830 $5,500 $38,500 $12,600 $88,200 $4,000 $28,000 15 Constructing a New 60” dia. Manhole 2 EA $11,628 $23,256 $7,500 $15,000 $12,700 $25,400 $4,500 $9,000 16 Installing or Replacing 4” to 6” Sewer Lateral Cleanout 50 EA $800 $40,000 $500 $25,000 $1,750 $87,500 $550 $27,500 17 Installing 4” Sewer Lateral Backflow Device 50 EA $165 $8,250 $250 $12,500 $1,530 $76,500 $350 $17,500 18 Installing 6” Sewer Lateral Backflow Device 50 EA $200 $10,000 $280 $14,000 $1,760 $88,000 $380 $19,000 Total $1,251,470 $1,030,000 $1,662,150 $657,600 Page 1 Pacific Underground KJ Woods West Valley Casey 234 Attachment B 1st Year Bidders 1 8.b Packet Pg. 132 Bid Item Description Qty.Unit Unit Price Total Unit Price Total Unit Price Total Unit Price Total 1 Removing and Replacing Existing 4” Sanitary Sewer Service Lateral 70 EA $8,065 $564,550 $4,500 $315,000 $10,580 $740,600 $3,360 $235,200 2 Removing and Replacing Existing 6” Sanitary Sewer Service Lateral 10 EA $8,440 $84,400 $4,800 $48,000 $9,750 $97,500 $3,675 $36,750 3 Removing Existing Sanitary Sewer Main and Replacing with 6” Sanitary Sewer Main 500 LF $135 $67,500 $220 $110,000 $139 $69,500 $92 $46,000 4 Removing Existing Sanitary Sewer Main and Replacing with 8” Sanitary Sewer Main 500 LF $139 $69,500 $225 $112,500 $141 $70,500 $96 $48,000 5 Removing Existing Sanitary Sewer Main and Replacing with 10” Sanitary Sewer Main 500 LF $154 $77,000 $230 $115,000 $153 $76,500 $105 $52,500 6 Removing Existing Sanitary Sewer Main and Replacing with 12” Sanitary Sewer Main 500 LF $160 $80,000 $245 $122,500 $159 $79,500 $111 $55,500 7 Removing Existing Sanitary Sewer Main and Replacing with 15” Sanitary Sewer Main 250 LF $199 $49,750 $250 $62,500 $206 $51,500 $147 $36,750 8 Spot Repair 6” to 10” Sewer Main 5 EA $4,725 $23,625 $3,200 $16,000 $7,150 $35,750 $3,150 $15,750 9 Spot Repair 12” to 15” Sewer Main 5 EA $5,250 $26,250 $3,400 $17,000 $7,500 $37,500 $3,570 $17,850 10 Replacing a 48” dia. Manhole 2 EA $10,175 $20,350 $8,500 $17,000 $13,900 $27,800 $5,000 $10,000 11 Replacing a 60” dia. Manhole 2 EA $12,210 $24,420 $10,600 $21,200 $14,300 $28,600 $5,200 $10,400 12 Removing a 48” dia. Manhole 7 EA $7,478 $52,346 $4,500 $31,500 $7,750 $54,250 $2,100 $14,700 13 Removing a 60” dia. Manhole 2 EA $8,975 $17,950 $4,600 $9,200 $8,400 $16,800 $2,100 $4,200 14 Constructing a New 48” dia. Manhole 7 EA $10,175 $71,225 $6,000 $42,000 $13,482 $94,374 $4,200 $29,400 15 Constructing a New 60” dia. Manhole 2 EA $12,210 $24,420 $8,000 $16,000 $13,589 $27,178 $4,700 $9,400 16 Installing or Replacing 4” to 6” Sewer Lateral Cleanout 50 EA $840 $42,000 $520 $26,000 $1,872 $93,600 $580 $29,000 17 Installing 4” Sewer Lateral Backflow Device 50 EA $174 $8,700 $270 $13,500 $1,637 $81,850 $370 $18,500 18 Installing 6” Sewer Lateral Backflow Device 50 EA $210 $10,500 $300 $15,000 $1,883 $94,150 $400 $20,000 Total $1,314,486 $1,109,900 $1,777,452 $689,900 Page 2 Pacific Underground Attachment B 4 Bidders KJ Woods West Valley Casey 2nd Year 123 8.b Packet Pg. 133 Bid Item Description Qty.Unit Unit Price Total Unit Price Total Unit Price Total Unit Price Total 1 Removing and Replacing Existing 4” Sanitary Sewer Service Lateral. 70 EA $8,469 $592,830 $5,000 $350,000 $11,100 $777,000 $3,500 $245,000 2 Removing and Replacing Existing 6” Sanitary Sewer Service Lateral 10 EA $8,862 $88,620 $5,200 $52,000 $10,230 $102,300 $3,800 $38,000 3 Removing Existing Sanitary Sewer Main and Replacing with 6” Sanitary Sewer Main 500 LF $142 $71,000 $230 $115,000 $146 $73,000 $97 $48,500 4 Removing Existing Sanitary Sewer Main and Replacing with 8” Sanitary Sewer Main 500 LF $146 $73,000 $235 $117,500 $148 $74,000 $101 $50,500 5 Removing Existing Sanitary Sewer Main and Replacing with 10” Sanitary Sewer Main 500 LF $162 $81,000 $240 $120,000 $161 $80,500 $111 $55,500 6 Removing Existing Sanitary Sewer Main and Replacing with 12” Sanitary Sewer Main 500 LF $168 $84,000 $245 $122,500 $167 $83,500 $117 $58,500 7 Removing Existing Sanitary Sewer Main and Replacing with 15” Sanitary Sewer Main 250 LF $209 $52,250 $250 $62,500 $216 $54,000 $155 $38,750 8 Spot Repair 6” to 10” Sewer Main 5 EA $4,962 $24,810 $3,600 $18,000 $7,500 $37,500 $3,307 $16,535 9 Spot Repair 12” to 15” Sewer Main 5 EA $5,513 $27,565 $3,800 $19,000 $7,875 $39,375 $3,750 $18,750 10 Replacing a 48” dia. Manhole 2 EA $10,684 $21,368 $9,000 $18,000 $14,595 $29,190 $5,250 $10,500 11 Replacing a 60” dia. Manhole 2 EA $12,820 $25,640 $10,800 $21,600 $15,015 $30,030 $5,460 $10,920 12 Removing a 48” dia. Manhole 7 EA $7,851 $54,957 $5,000 $35,000 $8,137 $56,959 $2,200 $15,400 13 Removing a 60” dia. Manhole 2 EA $9,424 $18,848 $5,500 $11,000 $8,820 $17,640 $2,200 $4,400 14 Constructing a New 48” dia. Manhole 7 EA $10,684 $74,788 $6,500 $45,500 $14,150 $99,050 $4,400 $30,800 15 Constructing a New 60” dia. Manhole 2 EA $12,820 $25,640 $9,000 $18,000 $14,265 $28,530 $5,000 $10,000 16 Installing or Replacing 4” to 6” Sewer Lateral Cleanout 50 EA $880 $44,000 $550 $27,500 $1,965 $98,250 $609 $30,450 17 Installing 4” Sewer Lateral Backflow Device 50 EA $183 $9,150 $300 $15,000 $1,715 $85,750 $390 $19,500 18 Installing 6” Sewer Lateral Backflow Device 50 EA $220 $11,000 $320 $16,000 $1,975 $98,750 $420 $21,000 Total $1,380,466 $1,184,100 $1,865,324 $723,005 1ST Year $1,251,470 $1,030,000 $1,662,150 $657,600 2ND Year $1,314,486 $1,109,100 $1,777,452 $689,900 3RD Year $1,380,466 $1,184,100 $1,865,324 $723,005 GRAND TOTAL $3,946,422 $3,323,200 $5,304,926 $2,070,505 Page 3 Pacific Underground KJ Woods West Valley Casey Attachment B 3rd Year Bidders 1234 8.b Packet Pg. 134 City of Palo Alto (ID # 2632) Office of the City Clerk City Council CAO Report Meeting Date: 3/12/2012 Report Type: Consent Calendar Title: Recommendation by the CAO Committee to the City Council to Approve the Contract with Sherry Lund Associates for the Amount Not To Exceed $35,050 to Complete the Four CAO Evaluations for the 2011-2012 Performance Review Cycle. From: Donna Grider, City Clerk Information : The CAO (Council Appointed Officials) Committee met on February 28, 2012 and discussed the proposal submitted by Sherry Lund of Sherry Lund Associates for the performance evaluation of the four CAOs for the period 2011-2012. The four CAOs are the City Manager, City Auditor, City Attorney and City Clerk. The original cover memo and proposal is located in Attachment A. The CAO Committee discussed the proposal and determined that the scope of work, including schedule and process for the performance reviews for the four CAOs is well designed and comprehensive. The fee for services is for the amount NTE $35,050. There is the possibility that if the reviews are completed on schedule prior to July 23, 2012 there will be a $1,500 discount and that if additional consulting hours are not required then the $2,500 cap available for potential consulting fees, based on an hourly rate of $250, will not be utilized. These two amounts are included in the NTE amount of $35,050. Therefore, if the review is done in a timely manner and without additional consulting hours, the amount will be less than the NTE $35,050. The CAO Committee recommends that the City Council approve the contract with Sherry Lund Associates for the amount of NTE $35,050 to complete the four CAO evaluations for the 2011-2012 performance review cycle. 9 Packet Pg. 135 Page 2 City Councilmember Gail Price Chair, CAO Committee ATTACHMENTS: • Attachment9.a: CAO Agenda Packet 02-28-12 LUND (PDF) • Attachment9.b: Action Minutes CAO Meeting February 28, 2012 (DOC) • Attachment9.c: FINAL Lund CAO Annual Eval Proposal 2-23-12 (DOCX) 9 Packet Pg. 136 CITY OF PALO ALTO OFFICE OF THE CITY CLERK February 28, 2012 The Honorable City Council Palo Alto, California Consideration of a Recommendation by the CAO Committee to the City Council to Approve the Contract with Sherry Lund Associates for the Amount of Not to Exceed $35,050 to Complete the Four CAO Evaluations for the 2011-2012 Performance Review Cycle Purpose of the Meeting The purpose of the CAO Committee meeting on February 28, 2012 is to review and reaffirm the CAO performance evaluation process by recommending to the City Council approval of a contract with Sherry Lund Associates for the amount not to exceed $35,050 to provide consulting services to support the completion of the four CAO evaluations for the 2011-2012 CAO evaluation cycles. The CAO (Council Appointed Officers) include the City Manager, City Clerk, City Attorney, and City Auditor. A proposal from Sherry Lund of Sherry Lund Associates outlining the scope of the services is attached in Attachment A. Background The annual CAO (Council Appointed Officers) performance evaluation process has been guided by the CAO Committee in partnership with Sherry Lund of Sherry Lund Associates since 2007. Last year three of the four CAOs were evaluated with the exception of the City Auditor since there was an interim City Auditor in place. In lieu of an annual evaluation for the City Auditor, Council asked Ms. Lund to interview employees in the Auditor’s office to provide additional information that would inform the recruitment for the new City Auditor. With the hiring of Jim Pelletier as the new City Auditor in early 2012, his evaluation will be conducted this year. During the scheduled Closed Session on March 27, 2012, the City Council will have a discussion with Mr. Pelletier in order to establish his goals for the remainder of the year. The consulting services required for this meeting are part of the approved contract for the 2010-2011 1 Packet Pg. 2 9.a Packet Pg. 137 Updated: 2/23/2012 12:52 PM by Beth Minor Page 2 CAO evaluation cycle. Last year, the City Council approved a contract for the amount of $32,550 which included $2,500 for additional billable hours needed to complete the work, subject to the approval of the CAO Committee Chair. The Proposal for Consulting Services (Attachment A) Ms. Sherry Lund, the consultant, has prepared a proposal for consulting services for the CAO evaluations. This proposal is similar to the process conducted last year. It will consist of two project elements: Element 1: CAO Annual Evaluations (June/July 2012) for all four CAO’s, and Element 2: Mid-Year Check-in and Alignment Discussion for the City Manager, City Attorney, and City Auditor (November/December 2012). The proposed consulting services fee for the two phases is not to exceed $35,050 assuming the full annual performance review for all four CAO’s and Mid-Year Discussions for the City Manager, City Attorney, and City Auditor. The $35,050 could be reduced by up to $4,000, which includes a reduction of: 1) $2,500 in additional contract hours needed if City Council Members do not complete the evaluation forms in a timely fashion (and thus requiring rework) in order to complete the project and 2) $1,500 discount for completing the evaluation work prior to July 23, 2012. Since the City Auditor Jim Pelletier will have only been with the City of Palo Alto for a few months, it is anticipated that his review will provide feedback on his first half-year in areas such as leadership, communication and relationship with the Council, colleagues, the public, and the quality of the audit reports. Since the Council summer break begins on July 24th, it will be imperative that the schedule of meetings is established soon for the annual review cycle. If you have any questions, please contact me prior to the meeting. Gail A. Price CAO Committee Chair City Council Member ATTACHMENTS: -:FINAL Lund CAO Annual Eval Proposal 2-22-12 (3)(DOCX) -:Sherry Lund Contract Last Year (PDF) -:Sherry Lund ACTION JUNE 6 2011 (DOC) 1 Packet Pg. 3 9.a Packet Pg. 138 Updated: 2/23/2012 12:52 PM by Beth Minor Page 3 Department Head:Donna Grider, City Clerk 1 Packet Pg. 4 9.a Packet Pg. 139 Updated: 2/23/2012 12:52 PM by Beth Minor Page 4 1 Packet Pg. 5 9.a Packet Pg. 140 Sherry L. Lund Associates, Portola Valley, CA (650) 619-5500 Page 1 of 5 247 La Cuesta Drive Portola Valley, CA 94028 (650) 619-5500 fax (650) 561-8414 sherrylund@aol.com February 22, 2012 Councilmember Gail Price Chairperson, Council CAO Committee City of Palo Alto City Council 250 Hamilton Avenue Palo Alto, CA 94301 Dear Councilmember Price: Following is my proposal for this year’s CAO performance review process. It includes the project description; timeline;what’s different this year;benefits; project phases;tasks and consultant responsibilities;client responsibilities;project cost and assumptions; consultant qualifications;and next steps for the CAO Committee. Project Description and Timeline At the end of FY 2011-2012, the Council will evaluate the four Council Appointed Officers (CAOs): the City Manager, City Clerk, City Attorney,and City Auditor.The four CAOs control the major financial and human resources in executing the Council’s vision and priorities. Performance evaluation is an important opportunity to get feedback on the past year. More importantly, it is an opportunity to get fully aligned with the Council about expectations of performance going forward. What’s Different This Year Performance evaluation criteria for all four CAO positions will have been refined and approved by Council prior to the beginning of this performance cycle.I propose the process proceed similarly to that of FY 2010-11. Ideally, the CAO evaluations would be completed before the Council’s summer meeting break, depending on Councilmembers’ schedules, which begins on July 24th this year. The City Auditor will have been on the job for nearly half a year. As part of last year’s contract, I am working with him on refining his performance criteria. He, Council, and I are scheduled for a one-hour March 27 closed session to set goals for him. By June, in the nearly half-year he will have been on the job, Council will be able to provide feedback on the quality of audit reports; his leadership style in the organization and with his staff; and communication with Council, staff, and the community. Council will also be able to make early course corrections as needed and answer questions about early implementation of the goals set in March. Suggested Changes in Scheduling, Subject to Availability of All Parties.I’d like to propose that we schedule July Council closed sessions for annual reviews as follows: §Closed Session #1: CC closed session to agree on performance reviews for City Clerk and City Manager §Closed Session #2: CC closed session to agree on performance reviews for City Attorney and City Auditor 1.a Packet Pg. 6 -: F I N A L L u n d C A O A n n u a l E v a l P r o p o s a l 2 - 2 2 - 1 2 ( 3 ) ( 2 5 9 6 : S h e r r y L u n d C o n t r a c t ) 9.a Packet Pg. 141 Sherry L. Lund Associates Proposal: 2011-2012 CAO Performance Management Page 2 §Closed Session #3: CC/CAO closed session to present review for City Clerk and City Manager and discuss §Closed Session #4: CC/CAO closed session to present review for City Attorney and City Auditor and discuss The advantages: We can present and discuss reviews at more predictable times, do that earlier in the evening when everyone’s energy is fresher, and keep those evenings a manageable length. We have attempted to do this in previous years, but were unable to do so due to CAO and Council travel schedules. Starting this process earlier gives us all a much better chance at improving scheduling. Benefits of a Facilitated Review Cycle The primary benefits I bring to the process are as follows: 1.The ability to leverage Council’s time to best use. Council has a exceptionally heavy work load with major budgetary and other issues in front of you. 2.Knowledge of your Council objectives, your unique City culture, your CAOs, plus technical expertise in executive evaluation and work with Councils and Boards. 3.As a result of items #1 and #2, the ability to be efficient in helping Council deliver a quality process and outcome. 4.Assurance of a safe, professional, and mutually respectful environment for review discussions/feedback. I serve as an advocate for all points of view being heard within a professional and respectful environment. I have worked the previous four years in customizing a process and approach that has produced good results for the Council and CAOs. I can work flexibly with you to make any changes in the process that you may desire within the framework of maintaining a quality process. Project Phases, Tasks,and Consultant Responsibilities In addition to the specific project steps listed below, I, as Consultant, will do the following: prepare for all meetings, assure necessary communications occur, serve as project manager, and assure a sound methodology for the process. The following performance evaluation project steps correspond to the last year’s review cycle: PROJECT ELEMENT #1: CAO Annual Performance Evaluations (June/July Timeframe) Phase I –Preparation for Review Session Consultant: §Works with internal liaison to develop contract and schedule project meetings and milestones. §Solicits CAO self-evaluations, reviews them and provides feedback and advice. §Assures CAO questions are clarified and raised with Council. §Prepares and distributes binders to Council, including instructions, CAO self-evaluations and blank evaluation hard copies. Distributes soft copies of forms on the same day. §Reviews Council evaluation feedback; meets with each Council member in person or by phone to refine and clarify written feedback prior to performance review session. §Compiles written comments and numerical feedback from Council and develops a written evaluation summary for each CAO. Prepares and sends confidential hardcopy packet with this information prior to each CAO review session. §Prepares information for closed review sessions that enable Councilmembers to focus their discussion efficiently. Phase II –Performance Review Session Consultant: §Provides facilitation and technical assistance as needed during closed session Council performance review meetings with each CAO. 1.a Packet Pg. 7 -: F I N A L L u n d C A O A n n u a l E v a l P r o p o s a l 2 - 2 2 - 1 2 ( 3 ) ( 2 5 9 6 : S h e r r y L u n d C o n t r a c t ) 9.a Packet Pg. 142 Sherry L. Lund Associates Proposal: 2011-2012 CAO Performance Management Page 3 Phase III -Post-Session Wrap-Up Consultant: §Documents agreed-upon unified Council feedback for written reviews. §Meets with each CAO to debrief evaluation meetings. §Prepares final evaluation file copies and obtains necessary signatures. Copies are given to CAO Committee Chair for filing and to each individual CAO. Final action on Council agenda is scheduled with Liaison. §Follows up with CAO Chair to debrief and solicit any additional process improvements. PROJECT ELEMENT #2: Mid-Year Check-In Performance Discussions (Nov./Dec. Timeframe) The Mid-Year is a simpler, more streamlined process than the annual review, and it has a different purpose. Mid-Year discussions allow CAOs and Council to do four things:1) Provide answers to CAOs’ performance-based questions from the entire Council; 2) Address any misalignments in expectations; 3) Discuss goals that require mutual involvement and participation; and 4) Address emergent issues. They allow Council to more actively support and manage performance rather than letting a goal potentially drift for an entire year. Consultant: §Gathers feedback from CAOs and Councilmembers in advance. §Creates a summary of key issues for discussion and distributes it to Council and CAOs in advance. §Facilitates closed session meetings. §Provides post-meeting summaries. Due to the highly confidential nature of this assignment, I personally perform all work on this contract. Client Responsibilities In order to support the success of the project and to stay within quoted costs, Client agrees to: §Assure involved parties a)are available for one-on-one and group meetings;and b) complete evaluations on time in order to meet project milestones. §Identify an internal liaison who can schedule appointments and provide support in getting evaluation items on Council agendas. §Provide an efficient and coordinated contracting process through a single liaison. §Provide meeting space and A-V equipment required. §Commit to a professional and respectful process. Proposed Timeline (subject to Council and CAO schedules) §March12 –CAO Recommendations on proposal to Council, modified Auditor review criteria to Council §March 13 –April 3 –Contract development §May 1-13: Consultant works with CAOs on self-evaluations §May 14: Final CAO self-evaluations due §May 16:Binder and solicitation of feedback materials to Council §June 22:City Manager and City Clerk input due from Council §June 29:City Attorney and City Auditor input due from Council §Week of July 9:Closed session Council meetings to discuss/agree on CAO performance reviews (2 per evening x 2 evenings). §Week of July 16:Closed session review meetings for all four CAOs (2 per evening x 2 evenings) §July 23:Get CAO and Council signatures on final review documents §Nov.(dates TBD)–Gather feedback from CAOs and Council for Mid-Year Performance Discussions §Dec. (dates TBD)–Facilitate Mid-Year Performance Discussions 1.a Packet Pg. 8 -: F I N A L L u n d C A O A n n u a l E v a l P r o p o s a l 2 - 2 2 - 1 2 ( 3 ) ( 2 5 9 6 : S h e r r y L u n d C o n t r a c t ) 9.a Packet Pg. 143 Sherry L. Lund Associates Proposal: 2011-2012 CAO Performance Management Page 4 Project Cost and Assumptions The total project can be completed for a project fee NTE $35,050**,which includes the following: §$26,000 for four CAO annual performance reviews (Project Element One). A $1,500 discount is applied if this work (Project Element One) can be completed by July 23, 2012*; *This discount reflects the ability to capture some economies of scale when the project is contained within a shorter timeframe vs. spreading out the work before and after Council’s summer meeting break. To qualify for this discount assumes that the project begins in early April and that Council commits to scheduling review meetings accordingly. §$6,550 for Mid-Year Check-In Performance Discussions for three CAOs:the City Manager, City Attorney, and City Auditor.** **To add a Mid-Year Performance Discussion for the City Clerk, add $ 950.00 to the project NTE amount. §A $2,500 contingency (up to 10 hours @ $250/hour) is included in the above project fee, subject to approval by the CAO Chair. Re-work that results from Council members not submitting evaluation forms in a timely fashion (thus requiring re-work in order to complete the project),meetings missed without 24 hours notice, and/or expansion of project scope will be billed at discounted public sector rate of $250/hr. (private sector rate is $375/hr.). §There is no compensation work required this year. Consultant Qualifications: For the benefit of new Council members who do not know me, I believe my skills and experience have been and are a good match for this work. I offer: §An insider’s understanding of City culture and citizen expectations with the outsider’s ability to be fully objective about the process and relationships. §Deep and broad experience in performance management (including executive evaluation), executive coaching, negotiation, interpersonal communication, rewards and recognition, and career development –all important components of this project. §Thirty-seven years experience in organizational consulting with twenty-five years consulting experience in my own firm—for a broad variety of organizations in the public and private sector: o Public sector/non-profit experience examples include:Cities of Fremont, Santa Rosa, Dublin,Mission Viejo, San Ramon, Chula Vista,Tracy, Fairfield, Union City, CA, plus the City of Tualatin, OR; Counties of San Mateo, Santa Clara, Alameda, San Joaquin, and Riverside,CA;BAAQMD, Carnegie Mellon University (Provost), the Dr. Susan Love Research Foundation, the S. H. Cowell Foundation, the University of California; o Global private sector examples include:Intel, HP, Acco Brands, Seagate, The Gap, Levi Strauss, Driscoll’s, Xoma, Genelabs, among many others. This broad experience allows me to collect best practices from many sources and to avoid getting locked into the paradigms and traditions of a single type of organization. Next Steps Upon acceptance of this proposal by the CAO Committee and Council, the next steps are to: 1.Execute a contract per your internal procedure. 1.a Packet Pg. 9 -: F I N A L L u n d C A O A n n u a l E v a l P r o p o s a l 2 - 2 2 - 1 2 ( 3 ) ( 2 5 9 6 : S h e r r y L u n d C o n t r a c t ) 9.a Packet Pg. 144 Sherry L. Lund Associates Proposal: 2011-2012 CAO Performance Management Page 5 2.Develop a project schedule, based on availability of all parties; revise it, as necessary, with Council at the earliest meeting possible.Please note that a schedule cannot be confirmed until the contracting process is complete. I would enjoy the opportunity to work with the Council and the CAOs again in the next evaluation cycle. Please let me know if I may provide additional information. Best regards, Sherry Lund Principal 1.a Packet Pg. 10 -: F I N A L L u n d C A O A n n u a l E v a l P r o p o s a l 2 - 2 2 - 1 2 ( 3 ) ( 2 5 9 6 : S h e r r y L u n d C o n t r a c t ) 9.a Packet Pg. 145 9.a Packet Pg. 146 1.b Packet Pg. 11 -: S h e r r y L u n d C o n t r a c t L a s t Y e a r ( 2 5 9 6 : S h e r r y L u n d C o n t r a c t ) 9.a Packet Pg. 147 1.b Packet Pg. 12 -: S h e r r y L u n d C o n t r a c t L a s t Y e a r ( 2 5 9 6 : S h e r r y L u n d C o n t r a c t ) 9.a Packet Pg. 148 1.b Packet Pg. 13 -: S h e r r y L u n d C o n t r a c t L a s t Y e a r ( 2 5 9 6 : S h e r r y L u n d C o n t r a c t ) 9.a Packet Pg. 149 1.b Packet Pg. 14 -: S h e r r y L u n d C o n t r a c t L a s t Y e a r ( 2 5 9 6 : S h e r r y L u n d C o n t r a c t ) 9.a Packet Pg. 150 1.b Packet Pg. 15 -: S h e r r y L u n d C o n t r a c t L a s t Y e a r ( 2 5 9 6 : S h e r r y L u n d C o n t r a c t ) 9.a Packet Pg. 151 1.b Packet Pg. 16 -: S h e r r y L u n d C o n t r a c t L a s t Y e a r ( 2 5 9 6 : S h e r r y L u n d C o n t r a c t ) 9.a Packet Pg. 152 1.b Packet Pg. 17 -: S h e r r y L u n d C o n t r a c t L a s t Y e a r ( 2 5 9 6 : S h e r r y L u n d C o n t r a c t ) 9.a Packet Pg. 153 1.b Packet Pg. 18 -: S h e r r y L u n d C o n t r a c t L a s t Y e a r ( 2 5 9 6 : S h e r r y L u n d C o n t r a c t ) 9.a Packet Pg. 154 1.b Packet Pg. 19 -: S h e r r y L u n d C o n t r a c t L a s t Y e a r ( 2 5 9 6 : S h e r r y L u n d C o n t r a c t ) 9.a Packet Pg. 155 1.b Packet Pg. 20 -: S h e r r y L u n d C o n t r a c t L a s t Y e a r ( 2 5 9 6 : S h e r r y L u n d C o n t r a c t ) 9.a Packet Pg. 156 1.b Packet Pg. 21 -: S h e r r y L u n d C o n t r a c t L a s t Y e a r ( 2 5 9 6 : S h e r r y L u n d C o n t r a c t ) 9.a Packet Pg. 157 1.b Packet Pg. 22 -: S h e r r y L u n d C o n t r a c t L a s t Y e a r ( 2 5 9 6 : S h e r r y L u n d C o n t r a c t ) 9.a Packet Pg. 158 1.b Packet Pg. 23 -: S h e r r y L u n d C o n t r a c t L a s t Y e a r ( 2 5 9 6 : S h e r r y L u n d C o n t r a c t ) 9.a Packet Pg. 159 1.b Packet Pg. 24 -: S h e r r y L u n d C o n t r a c t L a s t Y e a r ( 2 5 9 6 : S h e r r y L u n d C o n t r a c t ) 9.a Packet Pg. 160 1.b Packet Pg. 25 -: S h e r r y L u n d C o n t r a c t L a s t Y e a r ( 2 5 9 6 : S h e r r y L u n d C o n t r a c t ) 9.a Packet Pg. 161 1.b Packet Pg. 27 -: S h e r r y L u n d C o n t r a c t L a s t Y e a r ( 2 5 9 6 : S h e r r y L u n d C o n t r a c t ) 9.a Packet Pg. 162 COUNCIL APPOINTED OFFICERS COMMITTEE ACTION MINUTES __________________________________________ Special Meeting February 28, 2012 1. Consideration of a Recommendation by the CAO Committee to the City Council to Approve the Contract with Sherry Lund Associates for the Amount of Not to Exceed $35,050 to Complete the Four CAO Evaluations for the 2011-2012 Performance Review Cycle. MOTION: Vice Mayor Scharff moved, seconded by Council Member Espinosa to recommend to the City Council to approve the contract with Sherry Lund for $35,050 for 2012/2013 year. MOTION PASSED: 4-0 MOTION: Council Holman moved, seconded by Council Member Espinosa to suggest Council consider a modified 360 review which would include a description of a modified 360, budget, and benefits analysis of conducting a modified 360 review. MOTION PASSED: 3-1 Scharff no 9.b Packet Pg. 163 Sherry L. Lund Associates, Portola Valley, CA (650) 619-5500 Page 1 of 5 247 La Cuesta Drive Portola Valley, CA 94028 (650) 619-5500 fax (650) 561-8414 sherrylund@aol.com February 22, 2012 Councilmember Gail Price Chairperson, Council CAO Committee City of Palo Alto City Council 250 Hamilton Avenue Palo Alto, CA 94301 Dear Councilmember Price: Following is my proposal for this year’s CAO performance review process. It includes the project description; timeline; what’s different this year; benefits; project phases; tasks and consultant responsibilities; client responsibilities; project cost and assumptions; consultant qualifications; and next steps for the CAO Committee. Project Description and Timeline At the end of FY 2011-2012, the Council will evaluate the four Council Appointed Officers (CAOs): the City Manager, City Clerk, City Attorney, and City Auditor. The four CAOs control the major financial and human resources in executing the Council’s vision and priorities. Performance evaluation is an important opportunity to get feedback on the past year. More importantly, it is an opportunity to get fully aligned with the Council about expectations of performance going forward. What’s Different This Year Performance evaluation criteria for all four CAO positions will have been refined and approved by Council prior to the beginning of this performance cycle. I propose the process proceed similarly to that of FY 2010-11. Ideally, the CAO evaluations would be completed before the Council’s summer meeting break, depending on Councilmembers’ schedules, which begins on July 24th this year. The City Auditor will have been on the job for nearly half a year. As part of last year’s contract, I am working with him on refining his performance criteria. He, Council, and I are scheduled for a one-hour March 27 closed session to set goals for him. By June, in the nearly half-year he will have been on the job, Council will be able to provide feedback on the quality of audit reports; his leadership style in the organization and with his staff; and communication with Council, staff, and the community. Council will also be able to make early course corrections as needed and answer questions about early implementation of the goals set in March. Suggested Changes in Scheduling, Subject to Availability of All Parties. I’d like to propose that we schedule July Council closed sessions for annual reviews as follows: ▪ Closed Session #1: CC closed session to agree on performance reviews for City Clerk and City Manager ▪ Closed Session #2: CC closed session to agree on performance reviews for City Attorney and City Auditor 9.c Packet Pg. 164 Sherry L. Lund Associates Proposal: 2011-2012 CAO Performance Management Page 2 ▪ Closed Session #3: CC/CAO closed session to present review for City Clerk and City Manager and discuss ▪ Closed Session #4: CC/CAO closed session to present review for City Attorney and City Auditor and discuss The advantages: We can present and discuss reviews at more predictable times, do that earlier in the evening when everyone’s energy is fresher, and keep those evenings a manageable length. We have attempted to do this in previous years, but were unable to do so due to CAO and Council travel schedules. Starting this process earlier gives us all a much better chance at improving scheduling. Benefits of a Facilitated Review Cycle The primary benefits I bring to the process are as follows: 1. The ability to leverage Council’s time to best use. Council has a exceptionally heavy work load with major budgetary and other issues in front of you. 2. Knowledge of your Council objectives, your unique City culture, your CAOs, plus technical expertise in executive evaluation and work with Councils and Boards. 3. As a result of items #1 and #2, the ability to be efficient in helping Council deliver a quality process and outcome. 4. Assurance of a safe, professional, and mutually respectful environment for review discussions/feedback. I serve as an advocate for all points of view being heard within a professional and respectful environment. I have worked the previous four years in customizing a process and approach that has produced good results for the Council and CAOs. I can work flexibly with you to make any changes in the process that you may desire within the framework of maintaining a quality process. Project Phases, Tasks, and Consultant Responsibilities In addition to the specific project steps listed below, I, as Consultant, will do the following: prepare for all meetings, assure necessary communications occur, serve as project manager, and assure a sound methodology for the process. The following performance evaluation project steps correspond to the last year’s review cycle: PROJECT ELEMENT #1: CAO Annual Performance Evaluations (June/July Timeframe) Phase I – Preparation for Review Session Consultant: ▪ Works with internal liaison to develop contract and schedule project meetings and milestones. ▪ Solicits CAO self-evaluations, reviews them and provides feedback and advice. ▪ Assures CAO questions are clarified and raised with Council. ▪ Prepares and distributes binders to Council, including instructions, CAO self-evaluations and blank evaluation hard copies. Distributes soft copies of forms on the same day. ▪ Reviews Council evaluation feedback; meets with each Council member in person or by phone to refine and clarify written feedback prior to performance review session. ▪ Compiles written comments and numerical feedback from Council and develops a written evaluation summary for each CAO. Prepares and sends confidential hardcopy packet with this information prior to each CAO review session. ▪ Prepares information for closed review sessions that enable Councilmembers to focus their discussion efficiently. Phase II – Performance Review Session Consultant: ▪ Provides facilitation and technical assistance as needed during closed session Council performance review meetings with each CAO. 9.c Packet Pg. 165 Sherry L. Lund Associates Proposal: 2011-2012 CAO Performance Management Page 3 Phase III - Post-Session Wrap-Up Consultant: ▪ Documents agreed-upon unified Council feedback for written reviews. ▪ Meets with each CAO to debrief evaluation meetings. ▪ Prepares final evaluation file copies and obtains necessary signatures. Copies are given to CAO Committee Chair for filing and to each individual CAO. Final action on Council agenda is scheduled with Liaison. ▪ Follows up with CAO Chair to debrief and solicit any additional process improvements. PROJECT ELEMENT #2: Mid-Year Check-In Performance Discussions (Nov./Dec. Timeframe) The Mid-Year is a simpler, more streamlined process than the annual review, and it has a different purpose. Mid-Year discussions allow CAOs and Council to do four things: 1) Provide answers to CAOs’ performance-based questions from the entire Council; 2) Address any misalignments in expectations; 3) Discuss goals that require mutual involvement and participation; and 4) Address emergent issues. They allow Council to more actively support and manage performance rather than letting a goal potentially drift for an entire year. Consultant: ▪ Gathers feedback from CAOs and Councilmembers in advance. ▪ Creates a summary of key issues for discussion and distributes it to Council and CAOs in advance. ▪ Facilitates closed session meetings. ▪ Provides post-meeting summaries. Due to the highly confidential nature of this assignment, I personally perform all work on this contract. Client Responsibilities In order to support the success of the project and to stay within quoted costs, Client agrees to: ▪ Assure involved parties a) are available for one-on-one and group meetings; and b) complete evaluations on time in order to meet project milestones. ▪ Identify an internal liaison who can schedule appointments and provide support in getting evaluation items on Council agendas. ▪ Provide an efficient and coordinated contracting process through a single liaison. ▪ Provide meeting space and A-V equipment required. ▪ Commit to a professional and respectful process. Proposed Timeline (subject to Council and CAO schedules) ▪ March12 – CAO Recommendations on proposal to Council, modified Auditor review criteria to Council ▪ March 13 – April 3 – Contract development ▪ May 1-13: Consultant works with CAOs on self-evaluations ▪ May 14: Final CAO self-evaluations due ▪ May 16: Binder and solicitation of feedback materials to Council ▪ June 22: City Manager and City Clerk input due from Council ▪ June 29: City Attorney and City Auditor input due from Council ▪ Week of July 9: Closed session Council meetings to discuss/agree on CAO performance reviews (2 per evening x 2 evenings). ▪ Week of July 16: Closed session review meetings for all four CAOs (2 per evening x 2 evenings) ▪ July 23: Get CAO and Council signatures on final review documents ▪ Nov. (dates TBD) – Gather feedback from CAOs and Council for Mid-Year Performance Discussions ▪ Dec. (dates TBD) – Facilitate Mid-Year Performance Discussions 9.c Packet Pg. 166 Sherry L. Lund Associates Proposal: 2011-2012 CAO Performance Management Page 4 Project Cost and Assumptions The total project can be completed for a project fee NTE $35,050**, which includes the following: ▪ $26,000 for four CAO annual performance reviews (Project Element One). A $1,500 discount is applied if this work (Project Element One) can be completed by July 23, 2012*; *This discount reflects the ability to capture some economies of scale when the project is contained within a shorter timeframe vs. spreading out the work before and after Council’s summer meeting break. To qualify for this discount assumes that the project begins in early April and that Council commits to scheduling review meetings accordingly. ▪ $6,550 for Mid-Year Check-In Performance Discussions for three CAOs: the City Manager, City Attorney, and City Auditor.** **To add a Mid-Year Performance Discussion for the City Clerk, add $ 950.00 to the project NTE amount. ▪ A $2,500 contingency (up to 10 hours @ $250/hour) is included in the above project fee, subject to approval by the CAO Chair. Re-work that results from Council members not submitting evaluation forms in a timely fashion (thus requiring re-work in order to complete the project), meetings missed without 24 hours notice, and/or expansion of project scope will be billed at discounted public sector rate of $250/hr. (private sector rate is $375/hr.). ▪ There is no compensation work required this year. Consultant Qualifications: For the benefit of new Council members who do not know me, I believe my skills and experience have been and are a good match for this work. I offer: ▪ An insider’s understanding of City culture and citizen expectations with the outsider’s ability to be fully objective about the process and relationships. ▪ Deep and broad experience in performance management (including executive evaluation), executive coaching, negotiation, interpersonal communication, rewards and recognition, and career development – all important components of this project. ▪ Thirty-seven years experience in organizational consulting with twenty-five years consulting experience in my own firm—for a broad variety of organizations in the public and private sector: o Public sector/non-profit experience examples include: Cities of Fremont, Santa Rosa, Dublin, Mission Viejo, San Ramon, Chula Vista, Tracy, Fairfield, Union City, CA, plus the City of Tualatin, OR; Counties of San Mateo, Santa Clara, Alameda, San Joaquin, and Riverside, CA; BAAQMD, Carnegie Mellon University (Provost), the Dr. Susan Love Research Foundation, the S. H. Cowell Foundation, the University of California; o Global private sector examples include: Intel, HP, Acco Brands, Seagate, The Gap, Levi Strauss, Driscoll’s, Xoma, Genelabs, among many others. This broad experience allows me to collect best practices from many sources and to avoid getting locked into the paradigms and traditions of a single type of organization. Next Steps Upon acceptance of this proposal by the CAO Committee and Council, the next steps are to: 1. Execute a contract per your internal procedure. 9.c Packet Pg. 167 Sherry L. Lund Associates Proposal: 2011-2012 CAO Performance Management Page 5 2. Develop a project schedule, based on availability of all parties; revise it, as necessary, with Council at the earliest meeting possible. Please note that a schedule cannot be confirmed until the contracting process is complete. I would enjoy the opportunity to work with the Council and the CAOs again in the next evaluation cycle. Please let me know if I may provide additional information. Best regards, Sherry Lund Principal 9.c Packet Pg. 168 City of Palo Alto (ID # 2637) City Council Staff Report Meeting Date: 3/12/2012 Report Type: Consent Calendar City of Palo Alto Page 1 Title: Approval of Change Order Fifteen in the Amount of $278,710 to Flintco Construction for the Mitchell Park Library and Community Center Project From: City Manager Lead Department: Public Works Recommendation Staff recommends that Council authorize the City Manager or designee to sign Change Order 15 in the amount of $278,710 to Flintco Construction in connection with the Mitchell Park Library and Community Center (MPL&CC) Project. Executive Summary Council has authorized a 20% construction contract contingency ceiling for unanticipated construction costs and has directed that all individual Change Order line items in excess of $85,000 be reviewed and approved by the City Council in order to manage costs. Staff is seeking approval of a Change Order in the amount of $278,710 to compensate the contractor for additional tube steel and related costs not specified in the original drawings. Approval of this change order would bring the actual change orders approved to date total to $1,954,884 or about 8.02% of the base construction contract amount. This construction project is still well below the City’s Engineer budget of $ 32 Million. Background On September 12, 2011, Council authorized an increase in Change Order authority and a ceiling for the MPL&CC construction contract from 10% to 20% to cover unanticipated construction costs. Council also directed staff to provide Council with a Monthly Report on Change Orders with Flintco, the general contractor, and to seek Council approval for any individual Change Order line item in excess of $85,000. Discussion Entitlement for a Change Order A contractor is entitled to a Change Order if the City requests it to perform extra work. Extra work sometimes involves new additions or upgrades to the building (such as additional square footage or upgraded finishes). Extra work can also involve additional work or costs due to changes not described in the original plans. Determining whether a contractor is entitled to a 10 Packet Pg. 169 City of Palo Alto Page 2 Change Order is one of the primary duties of a construction manager. The City hired Turner Construction to review and make recommendation on all Change Orders. To process a Change Order for extra work, three steps are involved. The Construction Manager must determine: (1) entitlement to additional compensation by assessing whether the change constitutes “extra work” as defined in the Construction Contract; (2) whether the requested costs are compensable under the Construction Contract and (3) to the extent the change order request involves different construction methods or materials than those specified in the original plans, whether the City is entitled to a credit for work or materials included in the original price. Change Order Request No. 15 relates to additional material and labor costs associated with tube steel around window and door openings that was not clearly delineated in the plans. The bid documents showed tube steel at the head or jambs of window and door openings in 29 locations. However, the size and amount of tube steel was insufficient or not clearly defined. To ensure quality, Flintco requested the City’s architect to clearly define the size, location and amount of tube steel required to frame the larger window, door and louver openings in Buildings A, B, and C. In addition, the bid documents did not provide adequate information to show how the tube steel at window and door openings would attach to the structure of the building. As a result, the City’s architect issued updated drawings requiring more tube steel than originally specified. Change Order 15 contains the extra costs associated with these revised drawings (see Attachments A and B). As this was the first individual Change Order line item over $85,000 subject to Council’s approval, in addition to detailed review by staff and the City’s outside construction manager, the City also engaged a third party claims consultant to review the reasonableness of the Change Order. The third party reviewer has reviewed the change order and determined that Flintco is entitled to additional compensation and that the amounts and credits contained in Change Order 15 as recommended here are reasonable and justified. Change Order History To date, 14 Change Orders have been approved for a total amount of $1,676,174. This amount constitutes 6.88% of the base construction contract amount. Council has authorized change orders up to 20% of the contract amount; leaving 13.12% available of the Council approved 20%. A breakdown of the Change Orders and the key components of each are contained in Table 1 listed below with a brief description of each. Please recognize that Change Orders can include reductions and credits as well as new costs. You will see this, for example, reflected in Change Order # 5 in Table 1 below. Note: The last Change Order (14) is newly approved since the last report to Council. Table 1 Change Order Amount Change Order Summary 10 Packet Pg. 170 City of Palo Alto Page 3 1 $41,725 Eight extra work items including the pruning of trees, clean- up of the old building, and removing conduit found during site clearing and grading. 2 $33,102 Four extra work items including the rerouting of a storm drain around tree roots and the addition of a new manhole that the drawings showed being present but wasn’t. 3 $215,501 10 extra work items including an adjustment needed due to tree root interference, an upgrade in wall insulation capability, and design coordination needed for steel installation. 4 $242,754 11 extra work items including the installation of dowels at additional locations, the installation of thicker glass railings to increase stability, increased gas transmission line coordination, and extra concrete water protection. 5 $4,436 24 extra work items including an extra light fixture cost, fire safety drawing coordination, and a variety of additional required supplies totaling $70,536 minus credit given for three of the 24 work items including spare fixtures no longer required and reimbursed City of Palo Alto dump fees totaling $66,100. 6 $25,123 Seven extra work items including additional gas main protection, curb strengthening, and deck support for the Building A green roof. 7 $74,304 19 extra work items including HVAC driven floor adjustments, electrical system adjustments, data cable rerouting, and a new load break cabinet totaling $109,965 minus credit given for two of the 19 work items including stones for the Arch provided by the artist and value engineering totaling $35,661. 8 $385,251 10 extra work items including additional fill, perforated metal panel ceiling work, various waterproofing, and conduit. 9 $195,706 18 extra work items including multiple curb installations, a basketball court slab, and an art sculpture foundation. 10 $78,514 18 extra work items including a Flintco field staff supplement, waterproofing, plumbing and electrical system alterations, and tree protection measures totaling $79,226 minus credit given for one of the 18 work items identified as plumbing fixture changes totaling $712. 11 $224,662 14 extra work items including beam strengthening, interior & exterior roof tank pipe supports, electric vehicle chargers, load break cabinet bollards, and additional steel. 12 $20,347 Seven extra work items including A/V work, electrical changes, and a roof access ladder. 10 Packet Pg. 171 City of Palo Alto Page 4 13 $80,721 13 extra work items including metal stud framing, light fixtures, and miscellaneous electrical work. 14 $54,028 Five extra work items including a thickened roof edge, equipment curbs, a Building A ramp, signage support, and a book drop. TOTAL $1,676,174 TOTAL CO’s 1-14 Resource Impact Funding to pay Change Order 15 is available within the Capital Improvement Program Project (CIP) Budget PE-09006 for the MPL&CC project. Policy Implications There are no policy implications in approving Change Order # 15. Environmental Review On July 21, 2008, the Council confirmed the Director of Planning and Community Environment’s approvals of a Mitigated Negative Declaration for the MPLCC and a 2007 Addendum to the 2002 final Environmental Impact Report for the Main Library. Attachments: • Attachment10.a: A- Change Order 15 • Attachment10.b: B- Tube Steel Change Order Summary 10 Packet Pg. 172 10.a Packet Pg. 173 10.a Packet Pg. 174 10.a Packet Pg. 175 Attachment B Subcontractor Costs 1. Material - steel 45,305$ 2. Material - paint, anchor, epoxy 15,910$ 3. Material - sales tax 5,662$ 4. Fabrication - shop labor 44,141$ 5. Delivery 6,075$ 6. Install - field labor 119,290$ 7. Install - Equipment 20,110$ Sub Total of Subcontractor Costs 256,493$ 8. Less credit (for work on plans)(18,889)$ Adjusted steel cost 237,604$ 9. Overhead & Profit - 15% 35,641$ Net Tube Steel Costs 273,245$ 10. Bonds and Insurance - 2%5,465$ TOTAL CHANGE ORDER #15 278,710$ Mitchell Park Library and Community Center Tube Steel Change Order (C/O#15) (Based on Change Order Requests 137 & 157) 4 10.b Packet Pg. 176 City of Palo Alto (ID # 2433) City Council Staff Report Meeting Date: 3/12/2012 Report Type: Action Items City of Palo Alto Page 1 Title: Public Hearing: Consideration of the Proposed Lytton Gateway Planned Community (PC), including: (1) Approval of a Mitigated Negative Declaration, (2) Adoption of a PC Ordinance Amending the Zoning Map of the City Of Palo Alto to Change the Zone Designations of 355 and 335 Alma, currently CDC-P and CDN-P to Allow a Mixed Use, Five-Story, 64-foot Tall Building (and an 84’ Corner Tower Feature) on the former Shell Station Site, including Two Concessions under State Density Bonus Law (Building Height and Daylight Plane), and (3) Approval of a Resolution Amending the Comprehensive Plan Designation for a Portion of the Site (335 Alma) to Regional/Community Commercial (from Neighborhood Commercial), for the Project Located at 355 and 335 Alma Street. * Quasi-Judicial. From: City Manager Lead Department: Planning and Development Services Recommendation Staff recommends that Council: 1) Approve the Initial Study and Mitigated Negative Declaration (Attachment C) for the proposed mixed-use development at 335 and 355 Alma Street; 2) Adopt a Resolution (Attachment B) amending the Comprehensive Plan designation for a portion of the site (335 Alma) from Neighborhood Commercial to Regional/ Community Commercial; and 3) Approve a Planned Community Zone District ordinance (Attachment A) rezoning the subject property from CD-N(P) and CD-C(P) to allow for a new, five-story building with ground floor retail space (4,215 s.f.), three floors of office space (44,753 s.f.), and 14 residential rental units, including seven below market rate (BMR) residential units for which two concessions (associated with three affordable units (21% of total units under California Government Code 65915) allow for increased height and building encroachments into the required daylight plane. Executive Summary The “Lytton Gateway” project is designed as a gateway mixed-use building in a key location (on 11 Packet Pg. 177 City of Palo Alto Page 2 the former Shell gas station site, closed in August 2010) across from the City’s most important transit hub. The Planning and Transportation Commission (PTC) initiated the Planned Community (PC) Zone District application in March 2011. After conducting three additional public meetings and concurring on the innovative public benefits offered, the PTC recommended approval of the project and associated legal documents on February 22, 2012, with a 5-2 vote. The Architectural Review Board (ARB) also recommended the project on a 3-1 vote following two public hearings. The key issues for the project are the appropriate height and floor area, as well as the adequacy of “public benefits” (see the discussion below) proposed for the site. Background The site is 21,713 square feet in size, comprised of two parcels having two different zoning and land use designations. The corner parcel (14,400 square feet in area, located at 355 Alma and fronting Lytton as well) is within the Downtown Parking Assessment District and the CD-C (P) Zone District and has a Community Commercial land use designation. The second parcel (7,313 square feet in area, 335 Alma) is within the CD-N (P) Zone District but is not within the parking district, and has a Neighborhood Commercial land use designation. The project site abuts one-story commercial buildings and zone districts (CD-C(P) and CD-N(P) on Lytton and Alma, respectively) and multi-story multiple family residential buildings and zone district (RM-30 at the rear interior portion of the site). There are five non-restricted street parking spaces along the site’s Alma frontage. Additional background and neighborhood context is provided in the staff reports attached and online. Board and Commission Review Planning and Transportation Commission Review The Planning and Transportation Commission (PTC) recommended approval of the project and associated legal documents, with modifications annotated in the attachments, on a 5-2 vote on February 22, 2011. The applicant presented some changes in the parking provisions at the final hearing, including: (1) An increase in the number of spaces within the garage (seven additional spaces) for a total of 130 garage spaces, (2) An offer of eight surface spaces on the site to be open to the public at all hours, and 14 underground spaces available nights and weekends. (3) Attendant parking to allow an additional 34 cars within the garage to increase the garage’s capacity to a total of 164 cars. The Commissioners agreed that the public benefits were innovative and substantial. One dissenting vote (Vice Chair Fineberg) was due to concerns that Council had not yet provided guidelines for concessions and PC public benefits, that the downtown parking provisions are under consideration, and that the project needs a Comprehensive Plan amendment along with 11 Packet Pg. 178 City of Palo Alto Page 3 the PC rezoning. The PTC noted a desire to revisit Planned Community zoning regulations and issues related to code-sanctioned parking reductions and the potential for under-parking. Six public speakers presented their views to the PTC; five of the speakers were concerned about the project, primarily due to the potential for parking spillover into adjacent neighborhoods and the trickiness of PC public benefits; one speaker noted his full support. Written comments provided by one of the speakers (Mr. Alsman) are attached to this report along with correspondence received in time for Council packet. On January 25, 2012, the PTC had continued their review to allow the applicant and staff to coordinate further efforts on the public benefits and the Transportation Demand Management (TDM) programs, but the PTC had voted 6-1 to support the project’s density, size and mass as proposed, with two concessions under GC 65915 associated with three of the affordable units of a total of seven affordable units (increased from the five proposed at that time), so that four affordable units could be deemed as Public Benefits not associated with concessions. The public benefits and TDM program provisions were updated and presented to the PTC. The PTC reports provide additional background on the project. The January 25 and February 22 PTC staff reports and minutes are attached and links to other online staff reports, meeting minutes and webcasts for the following PTC meeting dates are provided below: 1/25/12 report: http://www.cityofpaloalto.org/civica/filebank/blobdload.asp?BlobID=30044 1/25/12 minutes: http://www.cityofpaloalto.org/civica/filebank/blobdload.asp?BlobID=30319 1/25/12 webcast: http://www.cityofpaloalto.org/civica/filebank/blobdload.asp?BlobID=30044 6/29/11 report: http://www.cityofpaloalto.org/civica/filebank/blobdload.asp?BlobID=27712 6/29/11 minutes: http://www.cityofpaloalto.org/civica/filebank/blobdload.asp?BlobID=29044 3/16/11 report: http://www.cityofpaloalto.org/civica/filebank/blobdload.asp?BlobID=26591 3/16/11 minutes: http://www.cityofpaloalto.org/civica/filebank/blobdload.asp?BlobID=27101 ARB Review The ARB conducted three reviews of the project; a preliminary review in June 2011, and two formal reviews, in October and November 2011. The ARB reports provide additional background information on the project. There were a total of three speakers for these hearings (two neighbors in support plus Mr. Bob Moss). The approval conditions include a condition for the applicant to return with design details on ARB Consent Calendar for landscape screening at the northeast corner, signage, final resolution of the 84 foot tower design, lighting details, and bike rack selection. Links to the ARB staff reports and minutes for the following ARB dates are provided below: 11/3/11 report: http://www.cityofpaloalto.org/civica/filebank/blobdload.asp?BlobID=29229 10/20/11 report: http://www.cityofpaloalto.org/civica/filebank/blobdload.asp?BlobID=29056 6/2/11 report: http://www.cityofpaloalto.org/civica/filebank/blobdload.asp?BlobID=27439 11 Packet Pg. 179 City of Palo Alto Page 4 Discussion and Policy Implications Findings for approval of the Mitigated Negative Declaration, Comprehensive Plan land use re- designation and Planned Community rezoning are contained in the proposed ordinance (Attachment A) and resolution (Attachment B). Three key issues discussed below are: (1) Downtown: Comprehensive Plan Vision, including Density Near Transit, Floor Area “cap” and Parking, (2) Density Bonus Law Concessions, and (3) Planned Community Public Benefits. 1. Downtown Development Policies Comprehensive Plan The City’s Comprehensive Plan includes the land use category “Transit Oriented Residential” which is envisioned for development of increased residential densities up to 50 units per acre within 2,000 feet of the City’s two multi-modal transit stations. “Pedestrian Transit Oriented Development” Standards have been developed in the City’s Zoning Code (Chapter 18.34) and applied to developments within walking distance of the California Avenue transit station as referenced in Chapter 18.34. The downtown transit station area has also been identified as suitable for increased residential density and transit oriented development. More recently in the regional discussions about sustainable communities, transit oriented development is also viewed as including office space near transit. Council Guidelines for Density and Height The proposed project is consistent with the ongoing effort the City is making to update the Comprehensive Plan by defining the type an amount of housing that can best be accommodated. The City of Palo Alto Planning and Transportation Commission staff report dated August 11, 2010, provided the following specific guidelines to which this project adheres: • Focus on sites within a ½ mile of transit stations if well served by transit or likely to be well served; • Evaluate limited exceptions to the City’s 50 foot height limit for mixed use projects within a ¼ mile of fixed rail transit stations; and • Explore potential housing inventory sites using LEED-ND, particularly near transit and services. Downtown Cap The Downtown Study incorporated a growth limit of 350,000 square feet of additional non- residential floor area above the total floor area existing in 1986, and provided for a re- evaluation of the CD regulations when net new development reaches 235,000 square feet. Since 1986, a total of 159,857 square feet of non-residential uses have been added in the Downtown area. Based on this recent monitoring, an additional 75,143 square feet of new non- residential development remains for development before the re-evaluation limit of 235,000 square feet growth limit is reached. The proposed mixed use project at 355 Alma would add nearly 50,000 square feet of non-residential floor area which would leave only 25,000 square feet before the re-evaluation of the area needs to occur. 11 Packet Pg. 180 City of Palo Alto Page 5 Downtown Parking Study The City continues to analyze parking strategies for downtown, and has been conducting meetings of a Downtown Parking Study Group to evaluate and explore ways to minimize the impacts of parking for downtown uses upon residential neighborhoods, particularly the Professorville neighborhood. The proposed public benefits for the Lytton Gateway project include contribution to a study which will look at potential locations and costs for parking structures on existing City surface parking lots. In addition, the project includes a valet parking program which could serve as a pilot or case example of such a program for potential future consideration for wider use in the downtown. 2. Density Bonus Law Concessions The City may not require BMR housing units for rental housing according to a recent appellate court decision (Palmer v. City of Los Angeles) . The applicant’s proposal is for seven affordable, rental housing units and is responsive to the PTC’s direction to increase the number of affordable housing units from five to seven so that four affordable units are public benefits not associated with concessions under Government Code Section (GC) 65915. Three of the 14 residential units (21%) would be provided as low-income affordable units, in order to qualify for two concessions under GC 65915. A binding agreement to maintain the units associated with the concessions as BMR units for 30 years would be required and is referenced in the attached PC Ordinance (Attachment A). The term and affordability level requirements contained in GC 65915 do not necessarily apply to the units that are serving as a public benefit but are not associated with the requested concessions. The City’s housing planner is working on an agreement with the applicant to ascertain the level and term of affordability for these four units. The two concessions are for: 1) allowance for additional building height (exceeding the 35 foot height limitation, due to its proximity within 150 feet of residential zoning, where a 50 foot height is otherwise allowed within a PC zone), and 2) relief from the more restrictive PC zone daylight plane requirement. The PTC is tentatively scheduled to consider the Housing Element update on April 11, 2012, and may also discuss proposed City policy regarding GC 65915 concessions at that time. 3. Public Benefits The provision of 14 rental housing units near a major public transit hub is one of the primary public benefits of the project. Seven of these housing units are to be rented at Below Market Rates (BMR). In addition to the provision of housing units as an intrinsic benefit, the following project components are proposed as public benefits: a) Provision of seven affordable housing units, four of which are not associated with Density Bonus Law concessions. 11 Packet Pg. 181 City of Palo Alto Page 6 b) Inclusion of 4,215 square feet of ground floor retail, personal service or financial service area as proximate to the train station. No office will be allowed on the ground floor for the entire 4,215 square feet of commercial space. c) Inclusion of 1,550 square feet of subsidized (BMR) ground floor retail space use. d) Provision of two (2) electric vehicle (EV) charging stations at off-site parking spaces directly adjacent to the site along Alma Street (one level 3 and one level 2 charging station) where the applicant will incur all costs of installing the EV stations. e) Provision of three additional level 2 EV charging stations in the below-grade parking garage. f) Provision of one Zip Car rental unit to be located in a designated space within the surface parking lot behind the building that is open to the public. g) Contribution of no less than $60,000 in funding to help City efforts to initiate a parking analysis for Downtown parking improvements. h) Provision of 8 surface parking spaces as available to the public at all hours daily, and 14 underground spaces nights and weekends. i) Development of an extensive Alma Street tree canopy with the addition of 13 new street trees on the west side (Cal Train parking lot side) of Alma Street between Lytton and Everett. j) Installation of pedestrian and urban design features, including widened sidewalks and crosswalks, to enhance pedestrian safety and connectivity. k) Installation of street and vehicular improvements including: 1. upgraded traffic signal at the intersection of Lytton and Alma, and high visibility crosswalk striping; 2. southbound left turn lane and associated median and striping at the Alma and University ramp (north ramp) to facilitate southbound left turns from Alma to westbound University; 3. center median on Alma between University and Lytton; 4. upgraded bike lanes and markings: northbound bike lane on Alma between University and Lytton; westbound bike lane and “bike box” on Lytton at the Alma intersection, and southbound bike lane on Alma approaching Lytton; 5. pedestrian bulb-out along project frontage at the Lytton and Alma corner, to shorten pedestrian crossing distances and walk times while improving safety; 6. new left turn lane from southbound Alma onto eastbound Everett (but no 7. change to hours of permitted turns proposed); 8. expanded sidewalk and curb (four feet wider) along Lytton project frontage to enhance pedestrian environment; 9. relocated street trees along Alma from existing sidewalk planting strips to new planters (with new trees) located within parking lane, to increase the usable sidewalk width from 8’3” to approximately 10’3”; 10. ten new post-top streetlights along Alma and Lytton at approximately 28 foot spacing, to provide safe and attractive lighting (replacing two existing streetlights); 11. street furnishings including a bench for pedestrian seating on Alma and trash and recycling receptacles along entire project frontage. 11 Packet Pg. 182 City of Palo Alto Page 7 l) Contribution of a perpetual easement to the City for placement of signage on the upper most roof/mechanical screen. The intent is for the City to be able to provide “gateway” signage identifying arrival into the City. m) Provision of CalTrain Go-Passes or the equivalent, as part of the TDM program, for all residents and employees of the commercial spaces for the life of the project. Timeline Initiation by P&TC March 16, 2011 Preliminary ARB Hearing June 2, 2011 P&TC Study Session June 29, 2011 First ARB Hearing October 20, 2011 Second ARB Hearing November 3, 2011 Formal P&TC Hearing January 25, 2012 Formal P&TC Hearing February 22, 2012 Council Hearing Date March 12, 2012 Resource Impact The project’s addition of 14 residential units, along with its creation of 49,024 square feet of office space and 4,215 square feet of retail space would yield the City additional annual revenues in the form of property taxes, sales taxes, and utility user taxes, estimated in the range of $70,000 to $90,000 per year. One-time revenues would include impact fees of approximately $1.4 million. On the expenditure side, the project’s residential portion will create additional demand for City services, but these should be offset by the developer impact fees and other revenues mentioned above. Environmental Review The Initial Study and Mitigated Negative Declaration, which reviewed the environmental issues related to the project, as required by the California Environmental Quality Act (CEQA), was circulated for a 20-day public comment period between October 17, 2011 and November 6, 2011. No comments were received on the Mitigated Negative Declaration during the comment period. A copy of the environmental document is provided as Attachment C. Implementation of required Mitigation measures related to air quality, biological resources, geology and soils, hazards and hazardous materials, noise, and transportation and traffic, are included in the conditions of approval. Attachments: • Attachment11.a: Attachment A: Draft PC Ordinance for 355 Alma • Attachment11.b: Attachment B: Comp Plan Resolution includes exhibit • Attachment11.c: Attachment C: Initial Study-Mitigated Negative Declaration • Attachment11.d: Attachment D: Mitigation Monitoring Program • Attachment11.e: Attachment E: Location Map • Attachment11.f: Attachment F: January 25, 2012 P&TC Staff Report & Minutes 11 Packet Pg. 183 City of Palo Alto Page 8 • Attachment11.g: Attachment G: February 22, 2012 P&TC Staff Report & Minutes • Attachment11.h: Attachment H: 101 Lytton public benefits list February 8, 2012 • Attachment11.i: Attachment I: February 14, 2012 355 Alma Gateway Memo • Attachment11.j: Attachment J: Improvements to Public Right-of-Ways • Attachment11.k: Attachment K: Alma and Lytton Public Improvements • Attachment11.l: Attachment L: Parking table • Attachment11.m: Attachment M: Public Correspondence • Attachment11.n: Attachment N: Transportation Demand Management Plan 11 Packet Pg. 184 11.a Packet Pg. 185 11.a Packet Pg. 186 11.a Packet Pg. 187 11.a Packet Pg. 188 11.a Packet Pg. 189 11.a Packet Pg. 190 11.a Packet Pg. 191 11.a Packet Pg. 192 11.a Packet Pg. 193 11.a Packet Pg. 194 11.a Packet Pg. 195 11.a Packet Pg. 196 11.a Packet Pg. 197 11.a Packet Pg. 198 11.a Packet Pg. 199 11.a Packet Pg. 200 11.a Packet Pg. 201 11.a Packet Pg. 202 11.a Packet Pg. 203 11.a Packet Pg. 204 11.a Packet Pg. 205 11.a Packet Pg. 206 11.a Packet Pg. 207 11.a Packet Pg. 208 11.a Packet Pg. 209 11.a Packet Pg. 210 11.a Packet Pg. 211 11.a Packet Pg. 212 11.a Packet Pg. 213 11.b Packet Pg. 214 11.b Packet Pg. 215 11.b Packet Pg. 216 ENVIRONMENTAL CHECKLIST FORM City of Palo Alto Department of Planning and Community Environment PROJECT DESCRIPTION: Request by Lund Smith on behalf of Lytton Gateway LLC for Planning and Transportation Commission review of a new Planned Community (PC) zone district and Comprehensive Plan land use designation amendment to allow a mixed use, five story building at a height of 64 feet for the enclosed floor area and 84 feet for the unenclosed corner tower feature, on the 21,713 square foot former Shell station site (335 and 355 Alma) zoned CD-C (P) and CD-N(P). The proposed project includes seven Below Market Rate housing units among the 14 rental housing units. Concessions for building encroachment into the maximum height and daylight plane standards are requested pursuant to California Government Code 65915. 1. PROJECT TITLE 355 Alma St. Palo Alto, California 94306 2. LEAD AGENCY NAME AND ADDRESS City of Palo Alto Department of Planning and Community Environment 250 Hamilton Ave. Palo Alto, CA 94303 3. CONTACT PERSON AND PHONE NUMBER Jason Nortz Planner, City of Palo Alto 650-617-3137 4. PROJECT SPONSOR’S NAME AND ADDRESS Lund Smith 3130 Alpine Rd., Suite 190 Portola Valley, CA 94028 5. APPLICATION NUMBER 11-PLN-00045 6. PROJECT LOCATION 355 Alma St. Palo Alto, CA 94303 Parcel Numbers: 120-25-111 & 120-25-112 355 Alma St. 11PLN-00045 Page 1 Mitigated Negative Declaration 11.c Packet Pg. 217 The project site is located in the northern section of the City of Palo Alto, in the northern part of Santa Clara County, west of U.S. Highway 101 and east of Interstate 280. 7. GENERAL PLAN DESIGNATION: The parcels have Comprehensive Plan land use designations of Neighborhood Commercial and Regional/Community Commercial based on the 1998-2010 Comprehensive Plan. Neighborhood Commercial includes shopping centers with off street parking or a cluster of streetfront stores that serve the immediate neighborhood. In some locations, residential and mixed use projects may also locate in this category. Non-residential floor area ratios will range up to 0.4. Regional/Community Commercial includes a wider variety of goods and services than the neighborhood shopping areas. This could include restaurants and non-retail services such as offices and banks. Non-residential floor area ratios will range from 0.35-2.0. 8. ZONING The site consists of two zoning designations: Downtown Community Commercial (CD-C) (P) for the 355 Alma parcel (120-25-111) and Downtown Neighborhood Commercial (CD-N) (P) for the 335 Alma parcel (120-25-112). The site area of the 355 Alma parcel is 14,400 square feet, accounting for 66% percent of the project site. The 335 Alma parcel area is 7,313 square feet, making up the remaining 34% of the project site. The 355 Alma Street parcel is located within the Downtown University Avenue Parking Assessment District, while the 335 Alma Street parcel is not in the district. The CD downtown commercial district is intended to be a comprehensive zoning district for the downtown business area, accommodating a wide range of commercial uses serving citywide and regional business and service needs, as well as providing for residential uses and neighborhood service needs. The CD commercial downtown district is specifically created to promote the following objectives in the downtown area of Palo Alto: (1) control the rate and size of commercial development; (2) preserve and promote ground-floor retail uses; (3) enhance pedestrian activity; (4) create harmonious transitions from the commercial areas to adjacent residential areas; and (5) where applied in conjunction with Chapter 16.49 of the Palo Alto Municipal Code, preserve historic buildings. 9. PROJECT DESCRIPTION The project is a request for a new Planned Community zone district and Comprehensive Plan land use designation amendment to allow a mixed use, five-story building to be known as the “101 Lytton Avenue project” on the former Shell Station site. The parcels have zoning designations of Downtown Neighborhood Commercial (CD-N (P)) and Downtown Community Commercial (CD-C (P)). The pedestrian shopping combining district (P) is also applicable to both zoning districts. The associated 355 Alma St. 11PLN-00045 Page 2 Mitigated Negative Declaration 11.c Packet Pg. 218 Comprehensive Plan Land Use designations are Neighborhood Commercial and Regional/Community Commercial. The requested amendment would result in a Regional/Community Commercial designation for the entire site. The proposed new building and use would replace the existing automobile service station, so that the two adjacent commercially zoned parcels would form a single Planned Community (PC) zoned site. The PC district is intended to accommodate developments for residential, commercial, professional, research, administrative, industrial, or other activities, including combinations of uses appropriately requiring flexibility under controlled conditions not otherwise attainable under other districts. The project at 335 and 355 Alma Street is the demolition of an existing 2,300 square foot automobile service station and construction of 65,070 square feet of new floor area within a five-story, 64 foot tall mixed use building on the 21,713 square foot site (a floor area ratio of 2.9:1).The building will feature a predominant tower element that is situated along the southwest corner of the building. The tower element will extend beyond the top of the fifth floor to a height of 84 feet. The mixed use building is intended to serve as a promenade entry to downtown beginning with the crosswalk from the University Avenue Transit Station. The project would include two levels of below grade parking, two ground floor retail locations totaling approximately 4,155 square feet, ground floor office space plus three floors of additional office space, and a fifth floor consisting of 14 residential units including 8 one bedroom units and 6 studio units. Five of the 14 residential units would be provided as below market rate (affordable) units. All units will be for rent only. The main volume of the building would be primarily located along Alma Street, extending around the corner to Lytton Avenue. The ground floor along Alma St. would include a 2,591 square foot retail space and a portion of the office lobby area. The lobby area continues around the corner along Lytton Ave. transitioning to a smaller 1,564 square foot retail component (a café or similar) for a total of 8,303 square feet of floor area on the first floor. Three levels of office space would be provided on floors 2, 3 and 4 with each floor consisting of approximately 15,000 square feet of floor area. The fifth floor would consist of 14 residential units, including 8 one bedroom units and 6 studio units. Seven of the 14 residential units would be oriented directly along the Alma Street elevation Two studio units would be oriented along Lytton Ave. and the remaining five residential units would be situated within the interior of the site, along the northeast elevation. The residential units would range in size from 405 square feet for the studio units to 607 square feet for the one bedroom units. Open space for the development would be provided as two roof top decks. The residential roof deck would be at the fifth level directly above the fourth floor of the retail component along Lytton Ave. It would have an area of approximately 4,335 square feet. The roof top deck for the office space would be located directly on top of the residential units above the fifth floor. The office roof top deck would have an area of approximately 11,000 square feet. . The total floor area breakdown for the project site is as follows: Office Retail Residential First Floor: 3,277 sf 4,155 sf 871 sf Second Floor: 14,666 sf 83 sf Third Floor: 15,536 sf 83 sf Fourth Floor: 15,536 sf 83 sf Fifth Floor 10,780 sf 355 Alma St. 11PLN-00045 Page 3 Mitigated Negative Declaration 11.c Packet Pg. 219 Total: 49,015 sf 4,155 sf 11,900 sf Building Total: 65,070 sf By discontinuing the automobile service station use, the project would eliminate three of the four existing entryways (two on Lytton Avenue and one on Alma Street). The closure of these curb cuts would allow for additional on-street parking as well as helping to create a more walk-able, pedestrian friendly environment. Vehicular access to the site would be provided using one main entry along Alma St. near the northern edge of the property. The concealed entryway would cut through a section of the first floor between the edge of the office space and the stairwell. Beyond the concealed entryway would be surface parking spaces and the entry ramp leading to two levels of below grade parking. The below grade parking would provide 110 spaces and the surface parking would provide an additional 13 spaces. An as yet undetermined number of the surface parking spaces and underground spaces would be electric vehicle (EV) charging spaces. The project would incorporate a variety of sustainable design and transportation friendly concepts that would help the development achieve both Cal Green Tier II requirements for the commercial portion of the project and meet Build it Green, Green Point Rated requirements for the residential portion of the project. In addition to these requirements the project would also be subject to review under the standards for the Leadership in Energy and Environmental Design for Neighborhood Development (LEED-ND) pilot program. 10. SURROUNDING LAND USES AND SETTING The existing site is located on the northeast corner of Alma Street and Lytton Avenue (as shown on Attachment A to this report, site location map). The site was previously occupied by a Shell automobile service station but has been unoccupied since the closure of the site in August 2010. The University Avenue CalTrain station is located immediately west of the site across Alma Street. South of the site across Lytton Avenue is a four-story office building occupied by the technology company A9. Directly east of the site along Lytton Avenue is a one-story multi- tenant commercial and retail building occupied by OnLive and Darbar Restaurant. North of the site is one story commercial building occupied by a technology start-up company. Northeast of the site on High Street are two single family residential lots that are zoned for medium density multi-family use. At the north end of the block at the corner of Alma Street and Everett Avenue is Palo Alto Fire Station #1. The site is comprised of two parcels for a total of nearly 0.50 acre (21,713 square feet or 0.498 acre), currently addressed as 335 and 355 Alma Street. The site consists of an abandoned service station, service garage and a covered fueling station with four pumps totaling approximately 2,300 square feet. The remainder of the site consists of paved area for parking/circulation and minimal landscaping. Access to the site can be gained from either Lytton Avenue or Alma Street with four existing entry lanes (two each on Alma Street and Lytton Avenue.) Existing 355 Alma St. 11PLN-00045 Page 4 Mitigated Negative Declaration 11.c Packet Pg. 220 landscaping on the site includes three pine trees and eight street trees. The site is currently enclosed by a six foot high chain link fence for safety reasons. 11. OTHER PUBLIC AGENCIES Office of the County Clerk-Recorder, Santa Clara Valley Transportation Authority. ENVIRONMENTAL CHECKLIST AND DISCUSSION OF IMPACTS EVALUATION OF ENVIRONMENTAL IMPACTS 1) A brief explanation is required for all answers except "No Impact" answers that are adequately supported by the information sources a lead agency cites in the parentheses following each question. [A "No Impact" answer is adequately supported if the referenced information sources show that the impact simply does not apply to projects like the one involved (e. g. the project falls outside a fault rupture zone). A "No Impact" answer should be explained where it is based on project-specific factors as well as general standards (e. g. the project will not expose sensitive receptors to pollutants, based on a project-specific screening analysis).] 2) All answers must take account of the whole action involved, including off-site as well as on-site, cumulative as well as project-level, indirect as well as direct, and construction as well as operational impacts. 3) Once the lead agency has determined that a particular physical impact may occur, then the checklist answers must indicate whether the impact is potentially significant, less than significant with mitigation, or less than significant. Potentially Significant Impact” is appropriate if there is substantial evidence that an effect may be significant. If there are one or more “Potentially Significant Impact” entries when the determination is made, an EIR is required. 4) “(Mitigated) Negative Declaration: Less Than Significant With Mitigation Incorporated” applies where the incorporation of mitigation measures has reduced an effect from “Potentially Significant Impact” to a “Less than Significant Impact.” The lead agency must describe the mitigation measures, and briefly explain how they reduce the effect to a less than significant level (mitigation measures from Section 17, “Earlier Analysis,” may be cross-referenced). 5) Earlier analysis may be used where, pursuant to the tiering, program EIR, or other CEQA process, an effect has been adequately analyzed in an earlier EIR or negative declaration. Section 15063 (C)(3) (D). In this case, a brief discussion should identify the following: a) Earlier Analysis Used. Identify and state where they are available for review. b) Impacts Adequately Addressed. Identify which effects from the above checklist were within the scope of and adequately analyzed in an earlier document pursuant to applicable legal standards, and state whether such effects were addressed by mitigation measures based on the earlier analysis. 355 Alma St. 11PLN-00045 Page 5 Mitigated Negative Declaration 11.c Packet Pg. 221 c) Mitigation Measures. For effects that are “Less than Significant with Mitigation Measures Incorporated,” describe the mitigation measures which were incorporated or refined from the earlier document and the extent to which they address site-specific conditions for the project. 6) Lead agencies are encouraged to incorporate into the checklist references to information sources for potential impacts (e.g. general plans, zoning ordinances). Reference to a previously prepared or outside document should, where appropriate, include a reference to the page or pages where the statement is substantiated. 7) Supporting Information Sources: A source list should be attached, and other sources used or individuals contacted should be cited in the discussion. 8) The explanation of each issue should identify: a) the significance criteria or threshold, if any, used to evaluate each question; and b) the mitigation measure identified, if any, to reduce the impact to less than significance. DISCUSSION OF IMPACTS The following Environmental Checklist was used to identify environmental impacts, which could occur if the proposed project is implemented. The left-hand column in the checklist lists the source(s) for the answer to each question. The sources cited are identified at the end of the checklist. Discussions of the basis for each answer and a discussion of mitigation measures that are proposed to reduce potential significant impacts are included. A. AESTHETICS Issues and Supporting Information Resources Would the project: Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact a) Substantially degrade the existing visual character or quality of the site and its surroundings? 1,2,5,6 x b) Have a substantial adverse effect on a public view or view corridor? 1,2,3,5,6, x c) Substantially damage scenic resources, including, but not limited to, trees, rock outcroppings, and historic buildings within a state scenic highway? 1,2- Map L4,5,6 x d) Violate existing Comprehensive Plan policies regarding visual resources? 1,2,5,6 x e) Create a new source of substantial light or glare which would adversely affect day or nighttime views in the area? 1,5,6, x f) Substantially shadow public open space (other than public streets and adjacent sidewalks) between 9:00 a.m. and 3:00 p.m. from September 21 to March 21? 1,5,6, x 355 Alma St. 11PLN-00045 Page 6 Mitigated Negative Declaration 11.c Packet Pg. 222 DISCUSSION: The project at 335 and 355 Alma Street is the construction of 65,070 square feet of new floor area within a five-story, 64 foot tall mixed use building on the 21,713 square foot site. The intention is to create a “gateway” building for Downtown Palo Alto as seen from the western edge of the downtown. The building will feature a predominant tower element that is situated along the southwest corner of the building. The tower element will extend beyond the top of the fifth floor to a height of 84 feet. The mixed use building is intended to serve as a promenade entry to downtown beginning with the crosswalk from the University Avenue Transit Station. The project would include two levels of below grade parking, ground floor retail of approximately 4,155 square feet, ground floor office space plus three floors of additional office space, and a fifth floor consisting of 14 residential units. The areas which are most sensitive to the visual impacts are those that are seen by the most people and nearby residential areas. Palo Alto Comprehensive Plan Policy L-49 instructs, “Design buildings to revitalize streets and public spaces and to enhance a sense of community and personal safety. Provide an ordered variety of entries, porches, windows, bays and balconies along public ways where it is consistent with neighborhood character; avoid blank or solid walls at street level; and include human- scale details and massing.” The project calls for widening the sidewalks on both Alma St. and Lytton Ave., decreasing the crosswalk distance to increase pedestrian safety along both Alma St. and Lytton Ave. and provide pedestrian scale awnings that span the entire project frontage. Policy L-71instructs, “Strengthen the identity of important community gateways, including entrances to the City at Highway 101, El Camino Real and Middlefield Road; the Caltrain stations; entries to commercial districts; and Embarcadero Road at El Camino Real”. The project is located directly across the street from the University Avenue Caltrain station. The project is intended to be developed as a “gateway” to downtown by using such design features as tower element that draws attention to the corner and more specifically to train riders. Pedestrian amenities and connectivity are elements of the project that are highly emphasized. Examples of this include the planting of many new street trees on both sides of Alma St. to help create an entrance canopy into downtown, providing retail components along both Lytton Ave. and Alma St. and increasing the walkable area directly in front of the site to make the site more pedestrian friendly. The architectural review process will address the common design aspects that relate to the project, in terms of scale, massing, and neighborhood context, as well as the smaller design details that are integral to the success of the project. It is through this process that the visual character of the project will be defined and as a result, will mitigate the potentially significant impacts to the site and the surrounding areas. The project will also be subject to show consistency with the Downtown Urban Design Guidelines and the Context Based Design Criteria that the ARB will also use as part of the review process. At a height of 64 feet, plus additional height for a tower element that extends to 84 feet, the proposed building will bring a considerably taller structure to the site than what currently exists. The building massing, fenestration, rooftop mechanical systems, and architectural details should be designed within the context of the immediate commercial neighborhood while respecting the neighborhoods that adjoin this district. Again, the architectural review process in put in place to help the proposed project be designed in such a manner that is in line with and consistent with the immediate neighborhood. 355 Alma St. 11PLN-00045 Page 7 Mitigated Negative Declaration 11.c Packet Pg. 223 Potential impacts from light and glare sources from the building, as well as nighttime automobile traffic entering or exiting the facility on Alma St., cannot be assessed until detailed design and photometric information has been submitted. A photometric plan has been provided as part of the project plan set but only limited information is provided. Based the plans it appears that that there is minimal impact to the abutting residential properties located along the northeastern property edge. According to the plans the lighting does not exceed the required 0.5 foot candles as measured at the abutting residential property line. All additional lighting including the lighting used for the roof top open space areas will be subject to the architectural review process to ensure all lighting impacts will be as minimal as possible and will not add spillover beyond the perimeter of the property line of the development. Mitigation Measure: None B. AGRICULTURAL RESOURCES Issues and Supporting Information Resources Would the project: Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact a) Convert Prime Farmland, Unique Farmland, or Farmland of Statewide Importance (Farmland), as shown on the maps prepared pursuant to the Farmland Mapping and Monitoring Program of the California Resources Agency, to non-agricultural use? 1,2,3,5,6 X b) Conflict with existing zoning for agricultural use, or a Williamson Act contract? 1,2-Map L- 9,3,5 X c) Involve other changes in the existing environment which, due to their location or nature, could result in conversion of Farmland, to non-agricultural use? 1,2-MapL- 9,3,6 X DISCUSSION: The site is not located in a “Prime Farmland”, “Unique Farmland”, or “Farmland of Statewide Importance” area, as shown on the maps prepared for the Farmland Mapping and Monitoring Program of the California Resources Agency. The site is not zoned for agricultural use, and is not regulated by the Williamson Act. Mitigation Measures: None C. AIR QUALITY 355 Alma St. 11PLN-00045 Page 8 Mitigated Negative Declaration 11.c Packet Pg. 224 Issues and Supporting Information Resources Would the project: Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact a) Conflict with or obstruct with implementation of the applicable air quality plan (1982 Bay Area Air Quality Plan & 2000 Clean Air Plan)? 1,2,9 X b) Violate any air quality standard or contribute substantially to an existing or projected air quality violation indicated by the following: 1,2 9 X i. Direct and/or indirect operational emissions that exceed the Bay Area Air Quality Management District (BAAQMD) criteria air pollutants of 80 pounds per day and/or 15 tons per year for nitrogen oxides (NO), reactive organic gases (ROG), and fine particulate matter of less than 10 microns in diameter (PM10); 1,2,9 X ii. Contribute to carbon monoxide (CO) concentrations exceeding the State Ambient Air Quality Standard of nine parts per million (ppm) averaged over eight hours or 20 ppm for one hour (as demonstrated by CALINE4 modeling, which would be performed when a) project CO emissions exceed 550 pounds per day or 100 tons per year; or b) project traffic would impact intersections or roadway links operating at Level of Service (LOS) D, E or F or would cause LOS to decline to D, E or F; or c) project would increase traffic volumes on nearby roadways by 10% or more)? 1,2,9 X c) Result in a cumulatively considerable net increase of any criteria pollutant for which the project region is non-attainment under an applicable federal or state ambient air quality standard (including releasing emissions which exceed quantitative thresholds for ozone precursors)? 1,2,9 X d) Expose sensitive receptors to substantial levels of toxic air contaminants? 1,9 X i. Probability of contracting cancer for the Maximally Exposed Individual (MEI) exceeds 10 in one million 1,9 X ii. Ground-level concentrations of non- carcinogenic TACs would result in a hazard index greater than one (1) for the MEI 1,9 e) Create objectionable odors affecting a substantial number of people? 1,9 X g) Not implement all applicable construction emission control measures recommended in the Bay Area Air Quality Management District 1 X 355 Alma St. 11PLN-00045 Page 9 Mitigated Negative Declaration 11.c Packet Pg. 225 355 Alma St. 11PLN-00045 Page 10 Mitigated Negative Declaration Issues and Supporting Information Resources Would the project: Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact CEQA Guidelines? DISCUSSION: The project is not expected to result in a significant impact on air quality. The project may result in temporary dust emissions due to construction activity. The project would have emissions well below the Bay Area Air Quality Management District’s (BAAQMD) thresholds. Development of the project site would be considered urban infill and the project is too small to incorporate project specific transportation control measures listed in the latest Clean Air Plan (i.e., Bay Area 2010 Clean Air Plan). Due to the size of the project, construction period emissions would be less than significant. The BAAQMD identified the size of land use projects that could result in significant air pollutant emissions. For construction impacts, the single family project size was indentified as 114 dwelling units. For operations impacts, the project size was indentified as 325 dwelling units. Since the project proposes 14 dwelling units, it is concluded that emissions would be below the BAAQMD significance thresholds for both construction exhaust and operational emissions. The project would not violate any air quality standard. Carbon monoxide emissions from traffic generated by the project would be the pollutant of greatest concern at the local level. The project would generate a small amount of traffic, so the contribution of project generated traffic would be minimal and the project would not cause or contribute to a violation of an ambient air quality standard. The project’s impact to sensitive receptors would be less than significant as long as construction period mitigation measures are put in place and ventilation systems that filter fine particulate matter are also put in place (as described in Mitigation C-1 and C-2 below). Sensitive receptors are defined as children, elderly, or ill people who can be more adversely affected by air quality problems. The proposed project will be located in an area consisting of commercial, residential and public facility uses. Construction activity is anticipated to involve the demolition of the existing buildings as well as building construction. During construction related activities dust would be the primary pollutant generated. The nearby land uses most affected by the construction generated dust would be those residences located directly south of the site due to the typical winds generated during late spring through early fall. The BAAQMD considers these impacts to less than significant if best management practices are employed to reduce the emissions. The other potential pollutant generated would be diesel exhaust from heavy construction equipment and heavy duty truck traffic. Diesel exhaust poses both a health and nuisance impact to nearby receptors. The construction activities that will generate the diesel exhaust are anticipated to occur during a relatively short time and therefore the impacts are considered to be less than significant if reasonable control measures put in place. Although sensitive receptors are in the immediate vicinity of the project, the construction impacts would be addressed as conditions of the architectural review approval, resulting in a less than significant impact to sensitive receptors. The residential portion of the project would be about 250 feet from the the Caltrain Palo Alto Station and the rail lines that run parallel to Alma Street. Based on the current Caltrain schedule, 74 trains run along this line during the weekdays and 34 trains during the weekend. In addition to the Caltrain 11.c Packet Pg. 226 trains, there are about four freight trains that also use this rail line on a daily basis. By 2025 it is anticipated that Caltrian will modernize its system to include the electrification of the railroad. If the electrification happens emissions would be reduced by 90 percent , essentially eliminating the air quality impacts of the Caltrain in the project site. However, prior to any electrification of Caltrain occurring, future residences of the project would be exposed to high levels of diesel particulate matter emissions from rail traffic (i.e., primarily Caltrain) that would be considered a significant impact. Use of ventilation systems that provide some level of filtration of fine particulates would reduce this impact to a less than significant level. Mitigation Measures C-1: Implementation of the measures recommended by BAAQMD and listed below would reduce the air quality impacts associated with grading and new construction to a less than significant. The contractor shall implement the following Best Management Practices that are required for all projects: 1. All exposed surface (e.g., parking areas, staging areas, soil piles, grading areas, and unpaved access roads) shall be watered two times per day. 2. All haul trucks transporting soil, sand, or other loose material off site shall be covered. 3. All visible mud or dirt track-out onto adjacent public roads shall be removed using wet power vacuum street sweepers at least once per day. The use of dry power sweeping is prohibited. 4. All vehicle speeds on unpaved roads shall be limited to 15 mph 5. All roadways, driveways, and sidewalks, to be paved shall be completed as soon as possible. Building pads shall be laid as soon as possible after grading unless seeding or soil binders are used. 6. Idling times shall be minimized either by shutting equipment off when not in use or reducing the maximum idling time to 5 minutes. Clear signage shall be provided for construction workers at all access points. 7. All construction equipment shall be maintained and properly tuned in accordance with manufacturers specifications. All equipment shall be checked by a certified mechanic and determined to be running in proper condition prior to operation. 8. Avoid staging construction equipment adjacent to existing residences or sensitive receptors. 9. Post a publicly visible sign with the telephone number and a person to contact at the Lead Agency regarding dust complaints. This person shall respond and take corrective action within 48 hours. The Air District’s phone number shall also be visible to ensure compliance with applicable regulations. Mitigation Measure C-2: Provide ventilation systems that filter fine particulate matter. The BAAQMD CEQA Air Quality Guidelines recommend as mitigation that projects install and maintain air filtration systems of fresh air supply. These systems should be installed on either an individual unit-by-unit basis, with individual air intake and exhaust ducts ventilating each unit separately, or through a centralized building ventilation system. The ventilation system should be certified to achieve certain effectiveness. It is anticipated that these units could achieve reductions of 80% of ambient PM2.5 concentrations (including DPM) from indoor areas. The filtrations systems would have to be maintained (including filter replacements) through 2020 or earlier if Caltrain is electrified. 355 Alma St. 11PLN-00045 Page 11 Mitigated Negative Declaration 11.c Packet Pg. 227 D. BIOLOGICAL RESOURCES Issues and Supporting Information Resources Would the project: Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact a) Have a substantial adverse effect, either directly or through habitat modifications, on any species identified as a candidate, sensitive, or special status species in local or regional plans, policies, or regulations, or by the California Department of Fish and Game or U.S. Fish and Wildlife Service? 1, 2- MapN1, 5,6 x b) Have a substantial adverse effect on any riparian habitat or other sensitive natural community identified in local or regional plans, policies, regulations, including federally protected wetlands as defined by Section 404 of the Clean Water Act (including, but not limited to, marsh, vernal pool, coastal, etc.) through direct removal, filling, hydrological interruption, or other means? 1,2- MapN1, 5,6 x c) Interfere substantially with the movement of any native resident or migratory fish or wildlife species or with established native resident or migratory wildlife corridors, or impede the use of native wildlife nursery sites? 1, 2- MapN1, 5,6 x d) Conflict with any local policies or ordinances protecting biological resources, such as a tree preservation policy or as defined by the City of Palo Alto’s Tree Preservation Ordinance (Municipal Code Section 8.10)? 1, 2, 3, 5,6,7,8,17 x e) Conflict with any applicable Habitat Conservation Plan, Natural Community Conservation Plan, or other approved local, regional, or state habitat conservation plan? 1, 2, 3, 5, 6, 7,8,17 x DISCUSSION: The project site is located in an established urban area with no riparian or tree habitat for the candidate, sensitive, or special status species in the area. No endangered, threatened, or rare animals, insects and plant species have been identified at this site. The project site is located in an established residential urban setting. The project site is located approximately ¼ mile from San Francisquito Creek, which, at its closest point to the project site, is the last riparian free-flowing urban creek on the southern Peninsula of San Francisco Bay. The mixed use project would not impact the creek, in that the project site is in an established commercial and residential area and on a site consists of an abandoned service station, service garage and a covered fueling station with four pumps. The remainder of the site consists of paved area for parking/circulation and minimal landscaping. However, due to the fact this site is located approximately ¼ mile from the nearest creek, there are no anticipated changes to the creek banks or habitat along the creek. These factors 355 Alma St. 11PLN-00045 Page 12 Mitigated Negative Declaration 11.c Packet Pg. 228 would result in a less than significant impact to any possible riparian habitat at San Francisquito Creek. The Comprehensive Plan includes policies, programs and implementing actions to ensure the preservation of biological tree resources. The following policies and programs are relevant to the proposed Project: Policy N-14: Protect, revitalize, and expand Palo Alto’s urban forest. Policy N-15: Require new commercial, multi-unit, and single family housing projects to provide street trees and related irrigation systems. Policy N-17: Preserve and protect heritage trees, including native oaks and other significant trees, on public and private property. Program N-16: Require replacement of trees, including street trees lost to new development. Program N-17: Develop and implement a plan for maintenance, irrigation, and replacement of trees. Program N-19: Achieve a 50 percent tree canopy for streets, parks, and parking lots. Palo Alto’s Regulated Trees The City of Palo Alto Municipal Code regulates specific types of trees on public and private property for the purpose of avoiding their removal or disfigurement without first being reviewed and permitted by the City’s Planning or Public Works Departments. Three categories within the status of regulated trees include protected trees (PAMC 8.10), public trees (PAMC 8.04.020) and designated trees (PAMC 18.76, when so provisioned to be saved and protected by a discretionary approval.) Palo Alto Municipal Code Tree Preservation Ordinance Chapter 8.10 of the Municipal Code (the Tree Preservation Ordinance) protects a category of Regulated Trees, on public or private property from removal or disfigurement. The Regulated Tree category includes: Protected Trees. Includes all coast live oak (Quercus agrifolia) and valley oak trees 11.5 inches or greater in diameter, coast redwood trees 18 inches or greater in diameter, and heritage trees designated by the City Council according to any of the following provisions: it is an outstanding specimen of a desirable species; it is one of the largest or oldest trees in Palo Alto; or it possesses distinctive form, size, age, location, and/or historical significance. Street Trees. Also protected are City-owned street trees (all trees growing within the street right- of-way, outside of private property) Designated Trees. Designated trees are established by the City when a project is subject to discretionary design review process by the Architecture Review Board that under Municipal Code Chapter 18.76.020(d)(11) includes as part of the findings of review, “whether natural features are appropriately preserved and integrated with the project.” Outstanding tree specimens 355 Alma St. 11PLN-00045 Page 13 Mitigated Negative Declaration 11.c Packet Pg. 229 355 Alma St. 11PLN-00045 Page 14 Mitigated Negative Declaration contributing to the existing site, neighborhood or community, and that have a rating of “High” Suitability for Preservation as reflected in Table 3.6-1 would constitute a typical designated tree. Palo Alto Tree Preservation Guidelines For all development projects within the City of Palo Alto, discretionary or ministerial, a Tree Disclosure Statement (TDS) is part of the submittal checklist to establish and verify trees that exist on the site, trees that overhang the site originating on an adjacent property, and trees that are growing in a City easement, parkway, or publicly owned land. The TDS stipulates that a Tree Survey is required (for multiple trees), when a Tree Preservation Report is required (development within the dripline of a Regulated Tree), and who may prepare these documents. The City of Palo Alto Tree Technical Manual1 (Tree Technical Manual) describes acceptable procedures and standards to preserve Regulated Trees, including: The protection of trees during construction; If allowed to be removed, the acceptable replacement strategy; Maintenance of protected trees (such as pruning guidelines); Format and procedures for tree reports; and Criteria for determining whether a tree is a hazard. Site Tree Resources Impact Assessment The proposed mixed use project includes demolition of all existing buildings, pavement and other structures and redevelopment of the entire site. Existing trees are located within areas proposed for demolition, grading and construction. As such, significant impacts to both tree roots and crowns would be unavoidable. The applicant’s submittal, Tree Report and Protection Plan prepared by Arbor Resources, identifies 21 trees of five various species. Nine of 21 trees are situated within the public right of way and are regarded as street trees (a regulated tree as noted above). None of the inventoried trees are defined as protected trees. Due in large part to the design of the project, including below ground and surface parking areas, the project is proposing to remove all but one of the 21 trees. All eight existing street trees will be removed and replaced with nine new street trees. Six additional street trees will be added directly across the street from the project site (on the Alma side of the street) to help provide visual appeal and create a tree canopy that will help provide a gateway type of appearance to the intersection.. The City Tree Technical Manual (TTM) development guidelines require the appraised value for each tree to be presented with the development application for the purpose of identifying asset value, security bond incentive for protection and care and/or damage or replacement value in the event of a destroyed tree. Trees classified as street trees have a combined value of $24,410. 1 City of Palo Alto, City of Palo Alto Tree Technical Manual, June 2001. Provided on line at http://www.cityofpaloalto.org/environment/urban_canopy.asp 11.c Packet Pg. 230 The Arborist Report prepared by Arbor Resources identifies design recommendations to be incorporated into the project that help preserve the health of the new trees as well as limiting the impacts the new trees could have on the project site. Summary As previously mentioned, this application is for a new Planned Community (PC) zone district and Comprehensive Plan land use designation amendment to allow a mixed use project.. The applicant shall work with staff during the ARB review process, to ensure all City standards regarding tree removal and replacement are met. The applicant shall also work with staff to ensure all proposed landscape materials proposed in specific development project plans are drought tolerant, non-invasive plants that meet all City Standards. Mitigation Measure D-1: Provide optimum tree replacement for loss of eight street trees as identified above. The applicant shall work with the City Arborist to identify adequate replacement trees (size, species, location, etc…) prior to development project approval. Significance after Mitigation: Less than significant E. CULTURAL RESOURCES Issues and Supporting Information Resources Would the project: Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact a) Directly or indirectly destroy a local cultural resource that is recognized by City Council resolution? 1,2- MapL-7 x b) Cause a substantial adverse change in the significance of an archaeological resource pursuant to 15064.5? 1,2- MapL8 x c) Directly or indirectly destroy a unique paleontological resource or site or unique geologic feature? 1,2- MapL8 x d) Disturb any human remains, including those interred outside of formal cemeteries? 1,2- MapL8 x e) Adversely affect a historic resource listed or eligible for listing on the National and/or California Register, or listed on the City’s Historic Inventory? 1,2- MapL7 x f) Eliminate important examples of major periods of California history or prehistory? 1 x 355 Alma St. 11PLN-00045 Page 15 Mitigated Negative Declaration 11.c Packet Pg. 231 DISCUSSION: The Comprehensive Plan indicates that the site is in a moderate archaeological resource sensitivity zone. Most of the City area east of Interstate 280 is designated in this zone. Although existing and historic development has altered the native landscape, the potential exists that now-buried Native American sites could be uncovered in future planning area construction. If archaeological materials are discovered the applicant would be required to perform additional testing and produce an Archaeological Monitoring and Data recovery Plan (AMDRP) to be approved prior to the start of construction. The City’s standard condition of approval will address this potentiality. Mitigation Measures: None F. GEOLOGY, SOILS AND SEISMICITY Issues and Supporting Information Resources Would the project: Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact a) Expose people or structures to potential substantial adverse effects, including the risk of loss, injury, or death involving: See below i) Rupture of a known earthquake fault, as delineated on the most recent Alquist- Priolo Earthquake Fault Zoning Map issued by the State Geologist for the area or based on other substantial evidence of a known fault? Refer to Division of Mines and Geology Special Publication 42. 2-MapN- 5, 5 x ii) Strong seismic ground shaking? 2-MapN- 10, 5,10 x iii) Seismic-related ground failure, including liquefaction? 2-MapN- 5, 6,11 x iv) Landslides? 2-MapN- 5, 5,10 x b) Result in substantial soil erosion or the loss of topsoil? 1, 2, 5,10 x c) Result in substantial siltation? 1,2,5,10 x d) Be located on a geologic unit or soil that is unstable, or that would become unstable as a result of the project, and potentially result in on- or off-site landslide, lateral spreading, subsidence, liquefaction or collapse? 2-MapN- 5, 5,10 x e) Be located on expansive soil, as defined in Table 18-1-B of the Uniform Building Code (1994), creating substantial risks to life or 2-MapN- x 355 Alma St. 11PLN-00045 Page 16 Mitigated Negative Declaration 11.c Packet Pg. 232 property? 5, 5,10 f) Have soils incapable of adequately supporting the use of septic tanks or alternative waste water disposal systems where sewers are not available for the disposal of waste water? 1,5,10 x g) Expose people or property to major geologic hazards that cannot be mitigated through the use of standard engineering design and seismic safety techniques? 1,4,5,10 x DISCUSSION: The entire state of California is in a seismically active area. According to the Palo Alto Comprehensive Plan the project site is not in an area that is subject to very strong ground shaking in the event of an earthquake or in an area subject to surface rupture, liquefaction, or earthquake induced landslides. Based on the Geotechnincal Investigation provided by Romig Engineers, Inc. (Source reference #10) the site is suitable for the proposed five-story development provided the recommendations presented in the report are followed during design and construction. The primary geotechnical concerns for the proposed building are the need for shoring the sides of the excavation for the below grade parking and the potential for ground water to rise above the finished floor elevation of the basement floor. Based on the proposed basement elevation, the basement foundation is expected to bear in very stiff to hard clays and dense to very dense sands. Based on the recommendation of Romig (as referenced in the Geotechnical Investigation), the building may be supported on a mat foundation bearing on dense sands and ery stiff clay soils at the lower basement level. Fault Rupture – the site is not located in a State of California Earthquake Fault Zone or area where fault rupture is considered likely. Therefore, active faults are not believed to exist beneath the site and the potential for fault rupture at the site is considered low. Ground Shaking – The site is located in an active seismic area. Strong ground shaking should therefore be expected several times during the life of the building, as is typical for sites throughout the Bay Area. The building should be designed in accordance with current earthquake resistance standards. Differential Compaction – Differential compaction can occur during moderate and large earthquakes when soft or loose, natural or fill soils are densified and settle, often unevenly across a site. The soils encountered on the project site were generally stiff to hard clays and dense to very dense sands. In the opinion of Romig Engineers, the likelihood of a significant differential compaction affecting the building is low provided the recommendations presented in the Geotechnical Investigation dated July 2011 and provided as Source Reference #10 are followed during design and construction Development on the site would be required to conform to all requirements in the Uniform Building Code, which includes provisions to ensure that the design and construction of all buildings includes provisions to resist damage from earthquakes to the extent feasible and acceptable. Substantial or permanent changes to the site topography are not expected. Standard conditions of development approval would require submittal of a final grading and drainage plan for the project for approval by the Public Works Department prior to the issuance of a building permit. The application of standard grading, drainage, and erosion control measures as a part of the approved grading and drainage plan is expected to avoid any grading-related impacts. 355 Alma St. 11PLN-00045 Page 17 Mitigated Negative Declaration 11.c Packet Pg. 233 Mitigation Measures F-1: The design of all buildings shall be in accordance with current earthquake resistant standards, including the 2007 CBC guidelines and design recommendations regarding the potential for localized liquefaction presented in the Geotechnical Investigation provided by TRC. Mitigation Measures F-2: Prior to final approval of any development plan and prior to building permit issuance the applicant will be required to retain a geotechnical engineer to 1) perform a final geotechnical investigation once site development plans are complete, 2) review the final construction plans and specifications, and 3) observe the earthwork and foundation installation. Significance after Mitigation: Less than significant G. HAZARDS AND HAZARDOUS MATERIALS Issues and Supporting Information Resources Would the project: Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact a) Create a significant hazard to the public or the environment through the routing transport, use, or disposal of hazardous materials? 1, 5,16 x b) Create a significant hazard to the public or the environment through reasonably foreseeable upset and accident conditions involving the release of hazardous materials into the environment? 1, 5,16 X c) Emit hazardous emissions or handle hazardous or acutely hazardous materials, substances, or waste within one-quarter mile of an existing or proposed school? 1, 5,16 X d) Construct a school on a property that is subject to hazards from hazardous materials contamination, emissions or accidental release? 1,5,16 X d) Be located on a site which is included on a list of hazardous materials sites compiled pursuant to Government Code Section 65962.5 and, as a result, would it create a significant hazard to the public or the environment? 1, 2- MapN-9, 5 X e) For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project result in a safety hazard for people residing or working in the project area? 1, 2 X f) For a project within the vicinity of a private airstrip, would the project result in a safety hazard for people residing or working the project area? 1, 2 X g) Impair implementation of or physically interfere with an adopted emergency response 1,2- X 355 Alma St. 11PLN-00045 Page 18 Mitigated Negative Declaration 11.c Packet Pg. 234 plan or emergency evacuation plan? MapN-7 h) Expose people or structures to a significant risk of loss, injury, or death involving wildland fires, including where wildlands are adjacent to urbanized areas or where residences are intermixed with wildlands? 2-MapN-7 X i) Create a significant hazard to the public or the environment from existing hazardous materials contamination by exposing future occupants or users of the site to contamination in excess of soil and ground water cleanup goals developed for the site? 1, 5,16 X DISCUSSION: The proposed project will not involve the handling, transportation, use, disposal, or emission of hazardous materials. The project site is not identified by either the California Environmental Protection Agency or the California State Water Resources Control Board as a hazardous materials site. The project is not expected to pose airport-related safety hazards. The proposed project will not interfere with either emergency response or evacuation. The project site is not located in a designated fire hazard area. The new construction and site design shall be required to comply with the City’s building permit approval standards and fire equipment and fire protection coverage standards as conditions of project approval prior to the issuance of a building permit. The Phase I Preliminary Site Assessment provided by Romig Engineers, Inc. indicates the subject site is not on any list of known contaminated sites, nor do there appear to be any listed sites in the immediate facility that have an obvious potential to impact soil or groundwater quality at the subject site. In a letter dated May 3, 2011 from the County of Santa Clara Department of Environmental Health, (DEH), it is made clear that the soil samples that were removed from the underground storage tanks (USTs) were not reported to have concentrations of TPHg and BTEX above the laboratory reporting limits. In addition four soil samples were collected following the removal of the UST piping and hydraulic lifts and the soil samples were not reported to have concentrations of TPHg, BTEX and Fuel Oxygenates above the laboratory reporting limits. Also, the building appears to be of sufficient age that asbestos containing materials (ACM) and Lead Paint (LBP) might have been used during construction. The previously referred to report provided by DEH confirms lead was reported in all samples at concentrations between 5.6-96 parts per million. The City of Palo Alto Fire Department requires as a condition of project approval that 1) Applicant should have a contingency plan in place to properly handle, remove and dispose of any USTs, contaminated soil and/or groundwater uncovered during excavation. Mitigation Measures H-1: CSCDEH closure stipulations shall be followed which include additional sampling, health risk management, and mitigation measures onsite in the event of a change in the property use, site grading activities, excavation, or the installation of water wells. Mitigation Measure H-2: Any future building or demolition is planned, a qualified contractor shall be retained to survey and ascertain the presence of these materials and provide for proper management and/or disposal of these materials. 355 Alma St. 11PLN-00045 Page 19 Mitigated Negative Declaration 11.c Packet Pg. 235 Significance after Mitigation: Less than significant H. HYDROLOGY AND WATER QUALITY Issues and Supporting Information Resources Would the project: Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact a) Violate any water quality standards or waste discharge requirements? 1,2,5,6 X b) Substantially deplete groundwater supplies or interfere substantially with groundwater recharge such that there would be a net deficit in aquifer volume or a lowering of the local groundwater table level (e.g., the production rate of pre-existing nearby wells would drop to a level which would not support existing land uses or planned uses for which permits have been granted)? 2-MapN2 X c) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, in a manner which would result in substantial erosion or siltation on- or off-site? 1,2,5,6 X d) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, or substantially increase the rate or amount of surface runoff in a manner which would result in flooding on- or off-site? 1,2,5,6 X e) Create or contribute runoff water which would exceed the capacity of existing or planned stormwater drainage systems or provide substantial additional sources of polluted runoff? 1,2,5,6 X f) Otherwise substantially degrade water quality? 1,2 X g) Place housing within a 100-year flood hazard area as mapped on a federal Flood Hazard Boundary or Flood Insurance Rate Map or other flood hazard delineation map? 1, 2-Map N-6,6 X h) Place within a 100-year flood hazard area structures which would impede or redirect flood flows? 2-MapN6 X i) Expose people or structures to a significant risk of loss, injury or death involve flooding, including flooding as a result of the failure of a levee or dam or being located within a 100-year flood hazard area? 2-MapN6 N8 X j) Inundation by seiche, tsunami, or mudflow? 2-MapN6, N8 X 355 Alma St. 11PLN-00045 Page 20 Mitigated Negative Declaration 11.c Packet Pg. 236 k) Result in stream bank instability? 1,2- MapN6,8 X DISCUSSION: The site consists of an abandoned service station, service garage and a covered fueling station with four pumps totaling approximately 2,300 square feet. The remainder of the site consists of paved area for parking/circulation and minimal landscaping. The project site is not located in an area of groundwater recharge and will not deplete the groundwater supplies. The project site is located approximately ½ mile outside of the 100-year flood hazard area and would not impede or redirect flood flows. The site is approximately a ¼ mile away from San Franciscuito Creek which is located north/northwest of the site. The project site is not in an area that is subject to seiche, tsunami or mudflow. As previously mentioned in the Geology, Soils and Seismicity section of this study, groundwater at the site has been measured to a depth as 28.5 feet. The five story building will be constructed over 2.5 levels of basement parking with the lowest level having a finished floor elevation ranging between 33.0 – 33.78 feet below existing grades. With the City’s required conditions of ARB approval the water impacts of the project would not be significant. During demolition, grading and construction, storm water pollution could result. Standard conditions of ARB approval would require the incorporation of Best Management Practices (BMPs) for storm water pollution prevention in all construction operations, in conformance with the Santa Clara Valley Non- Point Source Pollution Control Program, and submittal of a stormwater pollution prevention plan (SWPPP) in conjunction with building permit plans to address potential water quality impacts. City development standards and standard conditions of project approval would reduce potential negative impacts of the development project to less than significant. Mitigation Measure: None I. LAND USE AND PLANNING Issues and Supporting Information Resources Would the project: Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact a) Physically divide an established community? 1,2 X b) Conflict with any applicable land use plan, policy, or regulation of an agency with jurisdiction over the project (including, but not limited to the general plan, specific plan, local coastal program, or zoning ordinance) adopted for the purpose of avoiding or mitigating an environmental effect? 1,2,3,5,6, 11 X c) Conflict with any applicable habitat conservation plan or natural community conservation plan? 1,2 X d) Substantially adversely change the type or intensity of existing or planned land use in the 1,2,5,6,11 X 355 Alma St. 11PLN-00045 Page 21 Mitigated Negative Declaration 11.c Packet Pg. 237 355 Alma St. 11PLN-00045 Page 22 Mitigated Negative Declaration Issues and Supporting Information Resources Would the project: Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact area? e) Be incompatible with adjacent land uses or with the general character of the surrounding area, including density and building height? 1,2,3,5,6, 11 X f) Conflict with established residential, recreational, educational, religious, or scientific uses of an area? 1,2,5,6,11 X g) Convert prime farmland, unique farmland, or farmland of statewide importance (farmland) to non-agricultural use? 1,2,6 X DISCUSSION: The project at 355 Alma is for a new Planned Community (PC) zone district and Comprehensive Plan land use designation amendment to allow a mixed use, five story (64-foot high) building on the former Shell Station site on parcels having a combined area of 21,713 square feet and zoned CD-C (P) and CD- N (P). The Comprehensive Plan designation of Neighborhood Commercial for a portion of the site (the 335 Alma Parcel) would be amended to Regional/Community Commercial for the entire site. The Comprehensive Plan land use designation of Regional/Community Commercial relies on larger trade areas and includes such uses as department stores, restaurants, theaters, and non-retail services such as offices and banks. Non-residential floor area ratios can range from 0.35-2.0. The intention is to create a “gateway” building for Downtown Palo Alto as seen from the western edge of the downtown that is immediately adjacent to the University Ave. Cal Train station. The building will feature a predominant tower element that is situated along the southwest corner of the building. The tower element will extend beyond the top of the fifth floor to a height of 84 feet. The project would include two floors of below grade parking, ground floor retail space, three floors of office space and fifth floor consisting of 14 residential rental units, including five affordable housing units. The total floor area for the project would be 65,070 square feet. (a floor area ratio of 2.9:1) The project is being proposed as a Planned Community (PC) development with a Comprehensive Plan Amendment instead of being developed under the existing zoning designations of CD-C (P) and CD-N (P) due in large part to the residential zoned properties (RM-30) that abut the project site along the northeast corner. As a result of the abutting RM-30 zoned properties development of the site is limited to a maximum height of 35 feet and floor area ratio of 2.0:1 for the CD-C zoned parcel and 0.9:1 for the CD-N zoned parcel. The maximum floor area ratio for mixed use development in the CD-C (P) is 2.0:1 and 0.9:1 for the CD-N (P) zone. There is an exception in the code section, however, that allows development up to a 3.0:1 FAR in the CD-C sub-district and up to 2.0:1 FAR in the CD-N subdistrict if the City approves an application for transfers of development rights (TDRs) and/or bonuses for seismic and historic rehabilitation upgrades If the site were eligible for TDRs and 335 Alma Street was rezoned to the CD-C sub-district, the project would comply with the 3.0:1 FAR (65,070 s.f. / 21,713 s.f. = 2.9:1 FAR). However, this project site is not an eligible receiver site for TDRs because it is closer than 150 feet to a residential zoned district (abutting RM-30 zoned properties). The applicant is requesting a concession under Government Code 65915 and SB 1818 for the increased commercial FAR that would otherwise be allowed under zoning regulations if the project were not within 150 feet of an RM-30 11.c Packet Pg. 238 zoned property. If TDRs were available to use for this project the total square footage that could be constructed would be 57,826 sf. The project is proposing to construct 65,070 sf which is 7,244 square feet over what would otherwise be allowed per zoning if TDRs could be used. As part of this proposal, a Comprehensive Plan Amendment is requested to revise the land use designation of the interior parcel (335 Alma Street) from Neighborhood Commercial to Regional/Community Commercial. If both parcels of land had the Regional/Community Commercial land use designation, 43,426 square feet (2.0:1 FAR) of non-residential area could be approved for the entire project site. The non-residential floor area proposed for the project is 53,170 square feet, 9,744 square feet over the non-residential 2.0:1 FAR standard stated in the Comprehensive Plan. The Comprehensive Plan Land Use Definitions introductory paragraph (page L-10) states, “The FAR standards are consistent with those contained in the City’s Zoning Ordinance. They were initially established to estimate daytime population and employment in different parts of the City. In the definitions below, FARs represent an expectation of the overall intensity of future development. Actual FARs on individual sites will vary.” Approvals have been issued in the past for downtown developments above 2.0:1 FAR associated with Planned Communities, “receiver” sites eligible for transferred “bonus” floor area, and existing buildings expanding with seismic and historic rehabilitation bonus floor area. Those approvals did not involve adjustments to the FAR standard set forth in the land use definition paragraph of the Comprehensive Plan for Regional/Community Commercial land use to accommodate those projects. The land use designation for the 335 Alma site would need to be modified to allow up to the 2.0:1 FAR standard, and the additional area requested above 2.0:1 FAR is not achievable with bonus floor area via the transfer of Development Rights to the site as previously discussed in this report. Staff is of the opinion that the Council would not need to change to the Comprehensive Plan land use definition paragraph to increase the FAR standard based on prior Council approvals of Planned Communities with FAR greater than 2.0:1. The P&TC initiated the PC zone district and the preparation of a Comprehensive Plan land use designation amendment on March 16, 2011. The proposed development standards are also inconsistent with the PC limits for height and daylight plane adjacent to residentially zoned property. The applicant is also requesting concessions per Government Code 65915 to exceed both the height and daylight plane limitations. There are special requirements for PC zoned sites that abut any RM zoned property for height and daylight plane. Specifically, the PC zoning (PAMC 18.38) requires that the height limit shall be 35 feet and that a daylight plane is to be established along that portion of the lot that abuts the neighboring RM zoned property. The daylight plane is to be measured beginning at a height of 10 feet and increasing inward at 1:2 slope (30 degree angle); however, project plans show a daylight plane at a 45 degree angle, such that approximately a 100 foot length of building, including 4th floor office area, encroaches into the daylight plane. The proposed height for the project is 64 feet to the top of the fifth floor. . The non- residential portion of the project is proposed at 50 feet. The tower element at the corner extends to a height of approximately 84 feet. The side setback for the project from the RM zoned properties (on the eastern property line) would comply, at approximately 45 feet, and provides an adequate buffer of approximately 52 feet from the neighboring RM zoned property. In addition, the owner of the adjacent residential properties has provided a letter in support of the project 355 Alma St. 11PLN-00045 Page 23 Mitigated Negative Declaration 11.c Packet Pg. 239 The height requirement for the CD-C (P) zone is 50 feet whereas the height requirement for the CD-N (P) zone is 35 feet which is partially due to the project abutting two RM-30 zoned properties. Without the abutting RM zoned property the height limit would otherwise be 50 feet. The commercial portion of the project does not extend above the 50 foot height limit. The residential portion of the project, specifically the entire fifth floor, and the tower element exceed the 50 foot height limit. This height exception is consistent with recent City policy directives that have focused on limited exceptions to the City’s 50 foot height limit for developments within ¼ mile of fixed transit stations. The P&TC also advised the project applicant in previous public hearings for this project to consider exceeding the 50 foot height limit in order to accommodate more housing units. The 84 foot tall tower element will be analyzed as part of the architectural review board review. The development project would be required to comply with the City’s greenbuilding regulations and submit a checklist for Leadership in Energy and Environmental Design for Neighborhood Development (LEED-ND) as a part of the one year pilot program. The subject site is surrounded on two sides by developed land. Directly east of the site along Lytton Avenue is a one-story multi-tenant commercial and retail building occupied by OnLive and Darbar Restaurant. North of the site is one story commercial building occupied by a technology start-up company. Northeast of the site on High Street are two single family residential lots that are zoned for medium density multi-family use. The University Avenue CalTrain station is located immediately west of the site across Alma Street. South of the site across Lytton Avenue is a four-story office building occupied by the technology company A9. The site is not located in a “Prime Farmland”, “Unique Farmland”, or “Farmland of Statewide Importance” area, as shown on the maps prepared for the Farmland Mapping and Monitoring Program of the California Resources Agency. The site is not zoned for agricultural use, and is not regulated by the Williamson Act. Mitigation Measures: None. J. MINERAL RESOURCES Issues and Supporting Information Resources Would the project: Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact a) Result in the loss of availability of a known mineral resource that would be of value to the region and the residents of the state? 1,2 X b) Result in the loss of availability of a locally- important mineral resource recovery site delineated on a local general plan, specific plan or other land use plan? 1,2 X 355 Alma St. 11PLN-00045 Page 24 Mitigated Negative Declaration 11.c Packet Pg. 240 DISCUSSION: The City of Palo Alto has been classified by the California Department of Conservation (DOC), Division of Mines and Geology (DMG) as a Mineral Resource Zone 1 (MRZ-1). This designation signifies that there are no aggregate resources in the area. The DMG has not classified the City for other resources. There is no indication in the 2010 Comprehensive Plan that there are locally or regionally valuable mineral resources within the City of Palo Alto. Mitigation Measures: None. K. NOISE Issues and Supporting Information Resources Would the project: Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact a) Exposure of persons to or generation of noise levels in excess of standards established in the local general plan or noise ordinance, or applicable standards of other agencies? 1,2,12 X b) Exposure of persons to or generation of excessive ground borne vibrations or ground borne noise levels? 1,2,12 X c) A substantial permanent increase in ambient noise levels in the project vicinity above levels existing without the project? 1,2,12 X d) A substantial temporary or periodic increase in ambient noise levels in the project vicinity above levels existing without the project? 1,2,12 X e) For a project located within an airport land use plan or, where such a plan has not been adopted, would the project expose people residing or working in the project area to excessive noise levels? 1,2 X f) For a project within the vicinity of a private airstrip, would the project expose people residing or working in the project area to excessive noise levels? 1,2 X g) Cause the average 24 hour noise level (Ldn) to increase by 5.0 decibels (dB) or more in an existing residential area, even if the Ldn would remain below 60 dB? 1,2,12 X h) Cause the Ldn to increase by 3.0 dB or more in an existing residential area, thereby causing the Ldn in the area to exceed 60 dB? 1,2,12 X i) Cause an increase of 3.0 dB or more in an existing residential area where the Ldn currently exceeds 60 dB? 1,2,12 X j) Result in indoor noise levels for residential development to exceed an Ldn of 45 dB? 1,2,12 X 355 Alma St. 11PLN-00045 Page 25 Mitigated Negative Declaration 11.c Packet Pg. 241 355 Alma St. 11PLN-00045 Page 26 Mitigated Negative Declaration Issues and Supporting Information Resources Would the project: Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact k) Result in instantaneous noise levels of greater than 50 dB in bedrooms or 55 dB in other rooms in areas with an exterior Ldn of 60 dB or greater? 1,2,12 X X l) Generate construction noise exceeding the daytime background Leq at sensitive receptors by 10 dBA or more? 1,2,12 X DISCUSSION: The project site is located in an area with an existing noise level ranging between 65-70dBA. This noise level is typical for commercial districts and residential areas located in close proximity to commercial districts. Sources of environmental noise at the site include sirens from fire trucks associated with the Alma Fire Station, vehicles on local roadways, and trains on adjacent tracks. The loudest noise levels measured a the site were due to sirens. The next loudest sources were trains and vehicles. The traffic report prepared by Hexagon Transportation Consultants (Source Reference #14) indicates the future peak hour traffic volumes 15 years from now are expected to increase by an average of 27 percent within the vicinity of the project. This corresponds to approximately a 1-decibel increase in environmental noise, which is considered less than significant. Measured vibration levels associated with both north and southbound Caltrain trains were all below the more stringent guideline of 72VdB for residences. Therefore no mitigation is needed to comply with FTA Guidelines. This also assumes that the noise levels from trains will not increase in the future. Based on the Environmental Noise Assessment provided by Charles M. Salter Associates, Inc., environmental noise levels at the proposed residences fall into the conditionally acceptable and unacceptable land use categories. In order to properly mitigate noise levels on the new residences, the windows along Lytton Ave. will need to have an STC (Sound Transmission Class) between 34-36 and 38-42 for windows along Alma St in order to reduce interior noise levels to DNL of 45 dBA as required by code. Since the residential windows will need to be closed to meet the interior DNL of 45 dBA, the design must include a ventilation or air conditioning system to provide habitable interior environment. The outdoor noise impact associated with the residential rooftop deck will not exceed the DNL of 60 dBA which is consistent with the City Comprehensive Plan. The office/retail component of the project is exposed to noise levels regularly exceeding 65 dBA. In order to mitigate the noise impacts the windows must have STC ratings of at least 30. The walls of the office/retails component shall have an STC rating of at least 50. Specific information about the location of the mechanical equipment has not been finalized but the applicant has endeavored to move a considerable amount of the mechanical equipment inside the building. Noise reduction measures will be needed to meet the noise limits for the outdoor mechanical equipment. These measures could include maintaining appropriate distance from property lines, incorporating acoustically solid parapet walls and/or equipment enclosures. 11.c Packet Pg. 242 Grading and construction activities will result in temporary increases in local ambient noise levels. Typical noise sources would include mechanical equipment associated with excavation, grading and construction, which will be short term in duration. Standard approval conditions would require the project to comply with the City’s Noise Ordinance (PAMC Chapter 9.10), which restricts the timing and overall noise levels associated with construction activity. Short-term construction that complies with the Noise Ordinance would result in impacts that are expected to be less than significant. Mitigation Measures N-1: In order to meet the indoor noise level criteria, sound rated exterior facades and windows shall be required. The windows and facades shall meet the STC rated recommendations as provided in the Noise Assessment by Charles M. Salter Associates, Inc. Mitigation Measures N-2: In order to mitigate noise impacts associated with outdoor mechanical equipment mitigation measures will be required. These may include a combination of selecting quiet units, maintain minimum distances to property lines, and physical barriers and/or enclosures. The applicant shall work with staff during the design phase to determine to specific requirements. Mitigation Measures N-3: Since the residential units will be closed a ventilation or air conditioning system shall be provided to provide a habitable interior environment. L. POPULATION AND HOUSING Issues and Supporting Information Resources Would the project: Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact a) Induce substantial population growth in an area, either directly (for example, by proposing new homes and businesses) or indirectly (for example, through extension of roads or other infrastructure)? 1,2,5,6 X b) Displace substantial numbers of existing housing, necessitating the construction of replacement housing elsewhere? 1,5,6 X c) Displace substantial numbers of people, necessitating the construction of replacement housing elsewhere? 1,5,6 X d) Create a substantial imbalance between employed residents and jobs? 1,2,6 X e) Cumulatively exceed regional or local population projections? 1,2,6, X DISCUSSION: The project is for a new Planned Community (PC) zone district and Comprehensive Plan land use designation amendment to allow a mixed use, five story (64-foot high) building. Population in Palo Alto’s sphere of influence in 1996, according to Palo Alto Comprehensive Plan was 58,000 people. This is projected by the City’s Comprehensive Plan to increase to 62,880 by 2010. The project, by adding to the housing stock by 14 units, would cumulatively contribute to population in the area. The average household size in Palo Alto is 2.24 persons, which would mean the project could 355 Alma St. 11PLN-00045 Page 27 Mitigated Negative Declaration 11.c Packet Pg. 243 generate a total of 31 people. However, the project is being proposed as one-bedroom and studio units for rent only. The 2010 Census identifies 2.10 persons/household for renters. Based on this information the project would generate approximately 29 people. The projects cumulative impacts for the purposes of CEQA are also considered to be less than significant, as the impact from the project alone is not “considerable”, and is di minimus, as environmental conditions would essentially be the same whether or not the project is implemented (as per CEQA Guidelines §15355 and §15064). This incremental increase in population generated by the proposed project would not be considered a significant impact. City development standards, development fees (including impact fees) and standard conditions of project approval reduce potential negative impacts of the project to less than significant. The project would be subject to the policies and regulations of the Below Market Rate Housing program. Mitigation Measures: None. M. PUBLIC SERVICES Issues and Supporting Information Resources Would the project: Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact a) Would the project result in substantial adverse physical impacts associated with the provision of new or physically altered governmental facilities, need for new or physically altered governmental facilities, the construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios, response times or other performance objectives for any of the public services: Fire protection? Police protection? Schools? Parks? Other public facilities? 1, 2 1, 2 1, 2,20 1, 2 1, 2 X X X X X DISCUSSION: 355 Alma St. 11PLN-00045 Page 28 Mitigated Negative Declaration 11.c Packet Pg. 244 Fire The site is presently served by the Palo Alto Fire Department. The proposed changes will not impact present Fire District service to the site or area. The project would, as a condition of approval, be required to comply with all Fire Department requirements for fire safety. Police The site is located within the jurisdiction of the Palo Alto Police Department. The proposed changes will not result in the need for additional police officers, equipment or facilities. Schools No significant demand for school services would result from the project, which is not expected to generate a substantial increase in Palo Alto’s residential population. Based on the Palo Alto Unified School District (PAUSD) student generation rates of 0.75 students per single family detached dwelling unit and 0.7 per Below Market Rate rental unit, the project would generate approximately 10 school-age children. However, as previously mentioned above the residential units will be a mix of one-bedroom and studio units so it is anticipated that the number of school aged children will be slightly lower. Currently, enrollment in the PAUSD is approaching capacity. School overcrowding is not considered a significant effect however, under CEQA [Goleta Union School District v. The regents of the University of California (35 Cal.App.4th 1121 (1995)]. Rather, the increase in students from a project is only significant if such an increase would create significant environmental effects, such as impacts from the construction of a new school. Due to demand, the PAUSD is examining options to increase capacity, including re-opening currently closed schools. However, the project’s cumulative impacts for the purposes of CEQA are considered to be less than significant, as the impact from the project alone is not considerable. It should be noted that the PAUSD has implemented a school impact fee that the applicant would be required to pay. Impact fees are used only for construction and reconstruction of school facilities. As of July 21, 1996, the City of Palo Alto withholds building permits until PAUSD has certified that school impact fees have been paid. Parks Impact fees to address impacts on parks were adopted by the Palo Alto City Council in March of 2002. As a condition of subdivision and prior to receiving a building permit, the project applicant will be required to pay a one-time development impact fee for parks. The City’s park-in-lieu fee and park facility fee will be used to offset impacts on park facilities as a result of this project. Therefore, the project would result in a less than significant impact. Other Public Facilities Impact fees to address impacts on community centers and libraries were adopted by the Palo Alto City Council in March of 2002. Prior to receiving a building permit, the project applicant will be required to pay a one time development impact fee for community centers and libraries. The fee will be used to offset impacts on community centers and library facilities as a result of this project. Therefore, the project would result in a less than significant impact. Mitigation Measures: None 355 Alma St. 11PLN-00045 Page 29 Mitigated Negative Declaration 11.c Packet Pg. 245 N. RECREATION Issues and Supporting Information Resources Would the project: Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact a) Would the project increase the use of existing neighborhood and regional parks or other recreational facilities such that substantial physical deterioration of the facility would occur or be accelerated? 1,5,6 X b) Does the project include recreational facilities or require the construction or expansion of recreational facilities which might have an adverse physical effect on the environment? 1,5,6 X DISCUSSION: The development project would be subject to payment of impact fees for parks, libraries and community facilities. The project in total would therefore not have any significant impact on existing parks, nor include or require construction of recreational facilities. No mitigation is required. There would not be a significant change to the demand of recreation services as a result of the proposed project. The development project includes a proposal for separate common areas for both the residential and the commercial portions of the project. Mitigation Measures: None O. TRANSPORTATION AND TRAFFIC Issues and Supporting Information Resources Would the project: Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact a) Cause an increase in traffic which is substantial in relation to the existing traffic load and capacity of the street system (i.e., result in a substantial increase in either the number of vehicle trips, the volume to capacity ratio on roads, or congestion at intersections)? 1,5,6,14, X b) Exceed, either individually or cumulatively, a level of service standard established by the county congestion management agency for 1,5,6,14, X 355 Alma St. 11PLN-00045 Page 30 Mitigated Negative Declaration 11.c Packet Pg. 246 355 Alma St. 11PLN-00045 Page 31 Mitigated Negative Declaration Issues and Supporting Information Resources Would the project: Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact designated roads or highways? c) Result in change in air traffic patterns, including either an increase in traffic levels or a change in location that results in substantial safety risks? 1 X d) Substantially increase hazards due to a design feature (e.g., sharp curves or dangerous intersections) or incompatible uses (e.g., farm equipment)? 1,5,6,14 X e) Result in inadequate emergency access? 1,2,5 X f) Result in inadequate parking capacity? 1,2,5,6,14, X g) Conflict with adopted policies, plans, or programs supporting alternative transportation (e.g., pedestrian, transit & bicycle facilities)? 1,2,5,6,14 X h) Cause a local (City of Palo Alto) intersection to deteriorate below Level of Service (LOS) D and cause an increase in the average stopped delay for the critical movements by four seconds or more and the critical volume/capacity ratio (V/C) value to increase by 0.01 or more? 1,2,5,14 X i) Cause a local intersection already operating at LOS E or F to deteriorate in the average stopped delay for the critical movements by four seconds or more? 1,2,5,14 X j) Cause a regional intersection to deteriorate from an LOS E or better to LOS F or cause critical movement delay at such an intersection already operating at LOS F to increase by four seconds or more and the critical V/C value to increase by 0.01 or more? 1,2,5,14 X k) Cause a freeway segment to operate at LOS F or contribute traffic in excess of 1% of segment capacity to a freeway segment already operating at LOS F? 1,2,5,14 X l) Cause any change in traffic that would increase the Traffic Infusion on Residential Environment (TIRE) index by 0.1 or more? 1,2,5,14 X m) Cause queuing impacts based on a comparative analysis between the design queue length and the available queue storage capacity? Queuing impacts include, but are not limited to, spillback queues at project access locations; queues at turn lanes at intersections that block through traffic; queues at lane drops; queues at one intersection that extend back to impact other 1,2,5,14 X 11.c Packet Pg. 247 355 Alma St. 11PLN-00045 Page 32 Mitigated Negative Declaration Issues and Supporting Information Resources Would the project: Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact intersections, and spillback queues on ramps. n) Impede the development or function of planned pedestrian or bicycle facilities? 1,2,5,14 X o) Impede the operation of a transit system as a result of congestion? 1,2,5,14 X p) Create an operational safety hazard? 1,5,14 X DISCUSSION: The project site is located in the University Avenue Parking Assessment District, at the corner of Alma Street and Lytton Avenue. The building is proposed to be developed with on-site parking. Through empirical research, data have been collected that correlate to common land uses their propensity for producing traffic. Thus, for the most common land uses there are standard trip generation rates that can be applied to help predict future traffic increases that would result from a new development. The magnitude of the traffic generation by the proposed project was estimated by applying to the size of the development the applicable trip generation rates. These calculations, in the table below, are calculated on the basis of the trip generation rates published in the Institute of Transportation Engineers (ITE) manual entitled Trip Generation, eighth edition, 2008. The proposed project is a mixed- use development on a lot previously occupied by a gas and service station. There would be potentially significant traffic impact at the intersection of Alma Street and the University Avenue (South) ramps resulting from traffic generated by the project. Mitigation measures are identified and would reduce the potential impact to less than significant. Traffic Generation AM Peak Hour PM Peak Hour Land Use Size1 Daily Rate2 Daily Trips Peak- Hour Rate2 Hourly Trips Peak- Hour Rate2 Hourly Trips Proposed Retail – Cafe 1.564 117.23 183 40.75 64 64.21 100 Retail – Shopping Ctr 4.591 42.94 111 3.73 10 1.00 3 Office 49.015 15.72 770 2.73 134 2.16 106 Apartments 14 d.u. 6.62 93 0.62 9 0.51 7 Reductions -124 -36 -49 Net New Project Trips 1,033 181 167 1Size expressed in 1000 sq. ft. 2Trip rates based on Institute of Transportation Engineers, Trip Generation, sixth edition, 1997. Retail - Quality Restaurant (831) The replacement of the vacant lot (former gas and service station ) with a mixed use building will include enhancements to sidewalks and connectivity to adjacent land uses as well as the downtown transit station to provide a more appealing pedestrian and street environment. Impacts to the pedestrian environment will all be positive. 11.c Packet Pg. 248 Access/Circulation By discontinuing the automobile service station use, the project would eliminate three of the four existing entryways (two on Lytton Avenue and one on Alma Street). The closure of these curb cuts would allow for additional on-street parking as well as helping to create a more walk-able, pedestrian friendly environment. Vehicular access to the site would be provided using one main entry along Alma Street near the northern edge of the property. The concealed entryway would cut through a section of the first floor between the edge of the office space and the stairwell. Beyond the concealed entryway would be surface parking spaces and the entry ramp leading to two levels of below grade parking. The below grade parking would provide 110 spaces and the surface parking would provide an additional 13 spaces. An as yet undetermined number of the surface parking spaces and underground spaces would be electric vehicle (EV) spaces. Parking Spaces The development project provides 123 parking spaces on site, the required number of parking spaces consistent with the City code requirements after granting standard exceptions and adjustments. 101 Lytton Parking Requirements per Palo Alto Municipal Code SF Proposed Commercial FAR (49,015 SF of Office & 4,155 SF of Retail) 53,170 exemption of 1:1 FAR for Downtown Assessment District (PAMC 18.52.060) -14,400 exemption of 200 SF for every building (PAMC 18.52.070(a)(1)(D) -200 TOTAL COMMERCIAL SQUARE FOOTAGE SUBJECT TO PARKING REQUIREMENTS 38,570 Required number of Parking Spaces for 38,570 SF of Commercial space # of Stalls 4 per 1,000 SF parking ratio in assessment district (PAMC 18.52) 155 Total Parking stalls required for commercial component of project 155 30% reduction in parking ratio due to proximity to transit,TOD, affordable housing, & TDM program (PAMC 18.52) -46 Required number of Parking Spaces for Eight (8) 1BR Residential Units & Six (6) Studio Units # of Stalls 1.0 parking spaces per 1 BR unit must be provided (per Govt Code 65915) 8 1.0 parking spaces per Studio unit must be provided (per Govt Code 65915) 6 Total Parking stalls required for residential component of project 14 TOTAL PARKING REQUIREMENT 123 Transportation Demand Management Transportation Demand Management (TDM) measures will be provided as part of this project which encourage all forms of alternative transportation modes such as carpool, vanpool, public transit, bicycling, walking and telecommuting. Transit Service Impacts 355 Alma St. 11PLN-00045 Page 33 Mitigated Negative Declaration 11.c Packet Pg. 249 Existing bus service is provided within one-quarter mile of the project site. Commuter rail service is provided by Caltrain at the University Avenue station which is directly across the street from the project site (approximately 570 feet). There is a network of existing bicycle facilities is close proximity to the project site. Pedestrian and Bicycle Impacts Pedestrian facilities in the project area consist primarily of sidewalks along the streets near the project site. Sidewalks and crosswalks are located directly adjacent to the site. These sidewalks and crosswalks would be adequate to facilitate pedestrian access to and from the project site and the nearby transit facilities. As part of the project the applicant is proposing to decrease the crosswalk distance for both Lytton Ave. and Alma St. to enhance the safety of the intersection and encourage more pedestrian use. The project has been reviewed by the City Fire Department and Transportation Division and does not contain design features that will substantially increase hazards or result in inadequate emergency access. The project would not result in a change to air traffic patterns. Mitigation Measures: Mitigation Measure O1: The applicant shall prepare a construction management plan prior to approval of building permit. Traffic control measures during demolition and construction, removal of demolition debris, delivery of construction materials, retention of parking spaces for construction workers and on- site staff, shall be detailed as part of the approved construction management plan. Mitigation Measure O2: The project shall install left turn median shelter lane and supporting median and striping at Alma / University (south ramp) to facilitate westbound left turns from University ramp to southbound Alma. Significance After Mitigation Measures: Less than significant. P. UTILITIES AND SERVICE SYSTEMS Issues and Supporting Information Resources Would the project: Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact a) Exceed wastewater treatment requirements of the applicable Regional Water Quality Control Board? 1,2 X b) Require or result in the construction of new water or wastewater treatment facilities or expansion of existing facilities, the construction of which could cause significant environmental effects? 1,2 X c) Require or result in the construction of new storm water drainage facilities or expansion 355 Alma St. 11PLN-00045 Page 34 Mitigated Negative Declaration 11.c Packet Pg. 250 355 Alma St. 11PLN-00045 Page 35 Mitigated Negative Declaration Issues and Supporting Information Resources Would the project: Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact of existing facilities, the construction of which could cause significant environmental effects? 1,2 X d) Have sufficient water supplies available to serve the project from existing entitlements and resources, or are new or expanded entitlements needed? 1,2 X e) Result in a determination by the wastewater treatment provider which serves or may serve the project that it has inadequate capacity to serve the project’s projected demand in addition to the provider’s existing commitments? 1 X f) Be served by a landfill with sufficient permitted capacity to accommodate the project’s solid waste disposal needs? 1 X g) Comply with federal, state, and local statutes and regulations related to solid waste? 1 X h) Result in a substantial physical deterioration of a public facility due to increased use as a result of the project? 1 X DISCUSSION: Based on the information that was provided the proposed project would not significantly increase the demand on existing utilities and service systems, or use resources in a wasteful or inefficient manner. Standard conditions of ARB approval would require the applicant to submit calculations by a registered civil engineer to show that the on-site and off site water, sewer and fire systems are capable of serving the needs of the development and adjacent properties during peak flow demands. Trash and recycling facilities would be are proposed in the development project to accommodate the expected waste and recycling streams that would be generated by the expected uses within the building. The development project would be subject to all conditions of approval that would be provided by all applicable city departments. Mitigation Measures: None Q. MANDATORY FINDINGS OF SIGNIFICANCE Issues and Supporting Information Resources Would the project: Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact 11.c Packet Pg. 251 355 Alma St. 11PLN-00045 Page 36 Mitigated Negative Declaration Issues and Supporting Information Resources Would the project: Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact a) Does the project have the potential to degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self-sustaining levels, threaten to eliminate a plant or animal community, reduce the number or restrict the range of a rare or endangered plant or animal or eliminate important examples of the major periods of California history or prehistory? 1,2-Map L4,5 X b) Does the project have impacts that are individually limited, but cumulatively considerable? (“Cumulatively considerable” means that the incremental effects of a project are considerable when viewed in connection with the effects of past projects, the effects of other current projects, and the effects of probable future projects)? 1,2,5 X c) Does the project have environmental effects which will cause substantial adverse effects on human beings, either directly or indirectly? 1,5,8,9,12, X DISCUSSION: The project would not have an impact on fish or wildlife habitat, nor would it impact cultural or historic resources. The uses are appropriate for the site and the development would not result in an adverse visual impact. There is nothing in the nature of the proposed development and property improvements that would have a substantial adverse effect on human beings, or other life or environmental impacts once mitigation is implemented to reduce potential impacts to the users of the new subdivision project in the area of biological resources, noise, seismicity and air quality. Global Climate Change Impacts Global climate change is the alteration of the Earth’s weather including its temperature, precipitation, and wind patterns. Global temperatures are affected by naturally occurring atmospheric and anthropogenic gases, such as carbon dioxide, methane, and nitrous oxide. These gases allow sunlight into the Earth’s atmosphere, but prevent radiant heat from escaping from the atmosphere, which is known as the “greenhouse” effect. The world’s leading climate scientists have reached consensus that global climate change is underway and that human activity is a contributing factor. Twenty agencies at the international, national, state, and local levels are considering strategies to control emissions of gases that contribute to global warming. There is no comprehensive strategy that is being implemented on a global scale that addresses climate change; however, in California a multiagency “Climate Action Team”, has identified a range of strategies and the Air Resources Board, under Assembly Bill (AB) 32, has been designated to adopt the main plan for reducing California's greenhouse gas (GHG) emissions by January 1, 2009, and regulations and other initiatives for reducing GHG emissions by January 1, 2011. AB 32 requires achievement by 2020 of a statewide GHG emissions limit equivalent to 1990 11.c Packet Pg. 252 emissions, and the adoption of rules and regulations to achieve the maximum technologically feasible and cost-effective GHG emissions reductions. By 2050, the state plans to reduce GHG emissions to 80 percent below 1990 levels. Although the State of California has established programs to reduce GHG emissions, there are no established standards for gauging the significance of GHG emissions. Neither CEQA nor the CEQA Guidelines provide any methodology for analysis of GHGs. Given the “global” scope of global climate change, the challenge under CEQA is for a Lead Agency to translate the issue down to the level of a CEQA document for a specific project in a way that is meaningful to the decision making process. Under CEQA, the essential questions are whether a project creates or contributes to an environmental impact or is subject to impacts from the environment in which it would occur, and what mitigation measures are available to avoid or reduce the impacts. The proposed project would generate GHGs primarily through electricity generation and use and the creation of vehicle trips. Efforts to reduce the project’s GHG emissions by reducing electricity demand and reducing vehicle trips and miles, therefore, should be implemented. The proposed project would conform to the City’s Comprehensive Plan and other policies to reduce vehicle trips and miles traveled, including adding EV charging stations and a Transportation Demand Management program. Given the overwhelming scope of global climate change, it is not anticipated that a single development project would have an individually discernable effect on global climate change (e.g., that any change in global temperature or sea level could be attributed to the GHG emissions resulting from one single development project). Rather, it is more appropriate to conclude that the GHG emissions generated by the proposed project would combine with emissions across the state, nation, and globe to cumulatively contribute to global climate change. The project is subject to review under the standards for Leadership in Energy and Environmental Design for Neighborhood Development (LEED-ND) pilot program. Consequently, to the best of our knowledge, the proposed project would result in less-than-significant global climate change and cumulative impacts. 355 Alma St. 11PLN-00045 Page 37 Mitigated Negative Declaration 11.c Packet Pg. 253 SOURCE REFERENCES 1. Project Planner’s knowledge of the site and the proposed project 2. Palo Alto Comprehensive Plan, 1998-2010 (list specific policy and map references) 3. Palo Alto Municipal Code, Title 18 – Zoning Ordinance 4. Required compliance with the Uniform Building Code (UBC) Standards for Seismic Safety and Windload 5. Project Plans,Korth, Sunseri, Hagey Architects, received September 15, 2011 6. Project Description, Lytton Gateway LLC, received September 15, 2011 7. Arborist Report, Arbor Resources, February 17, 2011 8. Palo Alto Tree Technical Manual, Municipal Code Chapter 8.10.030, June 2001 9. Air Quality and Greenhouse Gas CEQA Evaluation, Illingworth & Rodkin, Inc., August 4, 2011 10. Geotechnical Investigation, Romig Engineers, INC., July, 2011 11. Phase I Preliminary Site Assessment,Romig Engineers, September 2010 12. Environmental Noise Assessment, Charles M. Salter Associates, Inc., July 29, 2011 14. Transportation Impact Analysis, Hexagon Transportation Consultants, Inc., August 5, 2011 15. Palo Alto Fire Department, Hazardous Materials Disclosure Checklist 16. City of Palo Alto Department Review Comments, Planning/Affordable Housing, November,2010 17. City of Palo Alto Department Review Comments, Planning/City Arborist 18. City of Palo Alto, Environmental Assessment Worksheet, October 25, 2010 355 Alma St. 11PLN-00045 Page 38 Mitigated Negative Declaration 11.c Packet Pg. 254 355 Alma St. 11PLN-00045 Page 39 Mitigated Negative Declaration DETERMINATION On the basis of this initial evaluation: I find that the proposed project COULD NOT have a significant effect on the environment, and a NEGATIVE DECLARATION will be prepared. I find that although the proposed project could have a significant effect on the environment, there will not be a significant effect in this case because revisions in the project have been made by or agreed to by the project proponent. A MITIGATED NEGATIVE DECLARATION will be prepared. x I find that the proposed project MAY have a significant effect on the environment, and an ENVIRONMENTAL IMPACT REPORT is required. I find that the proposed project MAY have a “potentially significant impact” or “potentially significant unless mitigated” impact on the environment, but at least one effect: 1) has been adequately analyzed in an earlier document pursuant to applicable legal standards, and 2) has been addressed by mitigation measures based on the earlier analysis as described on attached sheets. An ENVIRONMENTAL IMPACT REPORT is required, but it must analyze only the effects that remain to be addressed. I find that although the proposed project could have a significant effect on the environment, because all potentially significant effects (a) have been analyzed adequately in an earlier EIR or NEGATIVE DECLARATION pursuant to applicable standards, and (b) have been avoided or mitigated pursuant to that earlier EIR or NEGATIVE DECLARATION, including revisions or mitigation measures that are imposed upon the proposed project, nothing further is required. Project Planner Date Director of Planning and Date Community Environment 11.c Packet Pg. 255 4758 1 of 3 MITIGATION MONITORING AND REPORTING PROGRAM Project Name: 355 Alma (101 Lytton) Application No.: 11PLN-00045 Approved by: Signed by Director after MND/EIR approved Date: 1/11/2012 Environmental Impacts Mitigation Measures Responsibility for Compliance Timing of Compliance Oversight of Implementation Air Quality The potential to expose sensitive receptors to substantial levels of toxic air contaminants Mitigation Measure #1: Implementation of the measures recommended by BAAQMD and listed below would reduce the air quality impacts associated with grading and new construction to a less than significant. The contractor shall implement the Best Management Practices that are required for all projects (as fully described in the Initial Study). Mitigation Measure #2: Provide ventilation systems that filter fine particulate matter.The BAAQMD CEQA Air Quality Guidelines recommend as mitigation that projects install and maintain air filtration systems of fresh air supply. These systems should be installed on either an individual unit-by-unit basis, with individual air intake and exhaust ducts ventilating each unit separately, or through a centralized building ventilation system. The ventilation system should be certified to achieve certain effectiveness. It is anticipated that these units could achieve reductions of 80% of ambient PM2.5 concentrations (including DPM) from indoor areas. The filtrations systems would have to be maintained (including filter replacements) through 2020 or earlier if Caltrain is electrified. Applicant Prior to issuance of building permit; annually thereafter Director of Planning and Community Environment & Fire Department Biological resources Conflict with local policies or ordinances protecting biological resources Mitigation Measure #3: Provide optimum tree replacement for loss of eight street trees as identified above. The applicant shall work with the City Arborist to identify adequate replacement trees (size, species, location, etc…) prior to development project approval. Applicant Prior to issuance of building permit Director of Public Works- Arborist/Urban Forester ATTACHMENT D 11.d Packet Pg. 256 4758 2 of 3 Geology, Soils and Seismicity Be located on a geologic unit or soil that is unstable or that would become unstable as a result of the project Mitigation Measure #4: The design of all buildings shall be in accordance with current earthquake resistant standards, including the 2007 CBC guidelines and design recommendations regarding the potential for localized liquefaction presented in the Geotechnical Investigation provided by TRC. Mitigation Measure #5: Prior to final approval of any development plan and prior to building permit issuance the applicant will be required to retain a geotechnical engineer to 1) perform a final geotechnical investigation once site development plans are complete, 2) review the final construction plans and specifications, and 3) observe the earthwork and foundation installation. Applicant Prior to issuance of building permit Director of Planning and Community Environment- Building Division Hazards and Hazardous Materials Create a significant hazard to the public or the environment through reasonably foreseeable upset and accident conditions involving the release of hazardous materials Mitigation Measure #6: CSCDEH closure stipulations shall be followed which include additional sampling, health risk management, and mitigation measures onsite in the event of a change in the property use, site grading activities, excavation, or the installation of water wells. Mitigation Measure #7: Any future building or demolition is planned, a qualified contractor shall be retained to survey and ascertain the presence of these materials and provide for proper management and/or disposal of these materials Applicant Prior to issuance of building permit Fire Division-Fire Marshall Noise Result in indoor noise levels for residential development to exceed an Ldn of 45dB. Result in instantaneous noise levels of greater than 50dBin bedrooms or 55dB in other Mitigation Measure #8: In order to meet the indoor noise level criteria, sound rated exterior facades and windows shall be required. The windows and facades shall meet the STC rated recommendations as provided in the Noise Assessment by Charles M. Salter Associates, Inc. Mitigation Measure #9: In order to mitigate noise impacts associated with outdoor mechanical equipment mitigation measures will be required. These may include a combination of selecting quiet units, maintain minimum distances to property lines, and physical barriers and/or enclosures. The applicant shall work with staff during the design phase to determine to specific requirements. Applicant Prior to issuance of building permit Director of Planning and Community Environment 11.d Packet Pg. 257 4758 3 of 3 rooms in areas with exterior Ldn of 60dB or greater. Mitigation Measure #10: Since the residential units will be closed a ventilation or air conditioning system shall be provided to provide a habitable interior environment Transportation and Traffic Cause a local intersection already operating at LOS E or F to deteriorate in the average stopped delay for the critical movements by four seconds or more? Mitigation Measure #11: The applicant shall prepare a construction management plan prior to approval of building permit. Traffic control measures during demolition and construction, removal of demolition debris, delivery of construction materials, retention of parking spaces for construction workers and on-site staff, shall be detailed as part of the approved construction management plan. Mitigation Measure #12: The project shall install a left turn median with shelter lane the intersection of Alma Street/University Avenue (South Ramp). This mitigation would be coordinated with a recommended improvement measure of creating a one receiving and travel lane configuration between the intersection of Alma Street/Lytton Avenue and Alma Street/University Avenue (South Ramp). Applicant Prior to issuance of building permit Director of Planning and Community Environment- Chief Transportation Official 11.d Packet Pg. 258 University Avenue Train StationAmerican Red Cross Lytton Station FireStation # 1 werl LyttonSquare Senior Center Everett Manor EverettHouse Lytton Gardens Senior Residence Casa Olga Diddams The North Face Gym Lot R Parking Garage City of Palo Alto Private Bank of the Peninsula Comerica Bank Cornish & Carey Pizza My Heart Peninsula Creamery Mac's Smokeshop Wasson Building PALO AL HA W TH ORNE AVEN UESO N STR EET RAM ONA STREET E MERSO N STREET O R NE AVENUE HIGH STREET EVERETT AVENUE EVE RETT AVENUE HIG H STREET ALM A STR EET ALM A STREET LYTTON AVENUE E L C A MIN O R E AL AL MA STREET EM ER S ON STREET RA M O NA STREETLYTTON AVENUE U NIVERSITY AVENUE R A M O N A STR HIG H STREET EM ERSON STREET E MERS O N STREET HIG H STREET HA M BRYANT STREET FLO RENCE STRE W AVERLEY STREET EVERETT AVENUEBRYANT STREET HA W TH O RA M O NA STREET BRYANT STREET LYTTO N AVEN UE LANE 5 EAST LA LAN E 20 W EST MITC HELL LANE LANE 15 EAST BRYANT C OURT PAULSEN LANE LANE 12 W EST EL C A MIN O R PENINSULA C O R RID O R JOINT P O W ERS BOARD PC- PF CD CPC-4612 0 PF R M-30 PC-4063 PC-3872 PF CD-C (P) PF PF CD-N (P) PF P C-3111 PF PC-4262 PC-4243 PC-4238 RM-15 R M D( N P ) P C-3429 C D-N (P) CD-C (P) CD-C (P)PF PC-4611 P C-4053 R M D(N P) PF PC-2049 PC-3102 RM-30 PC-4339 RM-30 R M-30 PC-4436 CD-C(GF)(P) This map is a product of the City of Palo Alto GIS This document is a graphic representation only of best available sources. Legend Project Site Parking District 0' 232' 335-355 Alma Street CITY O F PALO A L TO I N C O R P O R ATE D C ALIFOR N IA P a l o A l t oT h e C i t y o f A P RIL 16 1894 The City of Palo Alto assumes no responsibility for any errors ©1989 to 2010 City of Palo Alto jarmer, 2011-03-09 12:39:14 (\\cc-maps\gis$\gis\admin\Personal\Planning.mdb) 11.e Packet Pg. 259 11.f Packet Pg. 260 11.f Packet Pg. 261 11.f Packet Pg. 262 11.f Packet Pg. 263 11.f Packet Pg. 264 11.f Packet Pg. 265 11.f Packet Pg. 266 11.f Packet Pg. 267 11.f Packet Pg. 268 11.f Packet Pg. 269 11.f Packet Pg. 270 11.f Packet Pg. 271 11.f Packet Pg. 272 11.f Packet Pg. 273 11.f Packet Pg. 274 11.f Packet Pg. 275 11.f Packet Pg. 276 11.f Packet Pg. 277 11.f Packet Pg. 278 11.f Packet Pg. 279 11.f Packet Pg. 280 11.f Packet Pg. 281 11.f Packet Pg. 282 11.f Packet Pg. 283 11.f Packet Pg. 284 11.f Packet Pg. 285 11.f Packet Pg. 286 11.f Packet Pg. 287 11.f Packet Pg. 288 11.f Packet Pg. 289 11.f Packet Pg. 290 11.f Packet Pg. 291 11.f Packet Pg. 292 11.f Packet Pg. 293 11.f Packet Pg. 294 11.f Packet Pg. 295 11.f Packet Pg. 296 11.f Packet Pg. 297 11.f Packet Pg. 298 11.f Packet Pg. 299 11.f Packet Pg. 300 11.f Packet Pg. 301 11.f Packet Pg. 302 11.f Packet Pg. 303 11.f Packet Pg. 304 11.f Packet Pg. 305 11.f Packet Pg. 306 11.f Packet Pg. 307 11.f Packet Pg. 308 11.f Packet Pg. 309 11.f Packet Pg. 310 11.f Packet Pg. 311 11.f Packet Pg. 312 11.f Packet Pg. 313 11.f Packet Pg. 314 11.f Packet Pg. 315 11.f Packet Pg. 316 11.f Packet Pg. 317 11.f Packet Pg. 318 11.f Packet Pg. 319 11.f Packet Pg. 320 11.f Packet Pg. 321 11.f Packet Pg. 322 11.f Packet Pg. 323 11.f Packet Pg. 324 11.f Packet Pg. 325 11.f Packet Pg. 326 11.f Packet Pg. 327 11.f Packet Pg. 328 11.f Packet Pg. 329 11.f Packet Pg. 330 11.f Packet Pg. 331 11.f Packet Pg. 332 11.f Packet Pg. 333 11.g Packet Pg. 334 11.g Packet Pg. 335 11.g Packet Pg. 336 11.g Packet Pg. 337 11.g Packet Pg. 338 11.g Packet Pg. 339 11.g Packet Pg. 340 11.g Packet Pg. 341 11.g Packet Pg. 342 11.g Packet Pg. 343 11.g Packet Pg. 344 11.g Packet Pg. 345 11.g Packet Pg. 346 11.g Packet Pg. 347 11.g Packet Pg. 348 11.g Packet Pg. 349 11.g Packet Pg. 350 11.g Packet Pg. 351 11.g Packet Pg. 352 11.g Packet Pg. 353 11.g Packet Pg. 354 11.g Packet Pg. 355 11.g Packet Pg. 356 11.g Packet Pg. 357 11.g Packet Pg. 358 11.g Packet Pg. 359 11.g Packet Pg. 360 11.g Packet Pg. 361 11.g Packet Pg. 362 11.g Packet Pg. 363 11.g Packet Pg. 364 11.g Packet Pg. 365 11.g Packet Pg. 366 11.g Packet Pg. 367 11.g Packet Pg. 368 11.g Packet Pg. 369 11.g Packet Pg. 370 11.g Packet Pg. 371 11.g Packet Pg. 372 11.g Packet Pg. 373 11.g Packet Pg. 374 11.g Packet Pg. 375 11.g Packet Pg. 376 11.g Packet Pg. 377 11.g Packet Pg. 378 11.g Packet Pg. 379 11.g Packet Pg. 380 11.g Packet Pg. 381 11.g Packet Pg. 382 11.g Packet Pg. 383 11.g Packet Pg. 384 11.g Packet Pg. 385 11.g Packet Pg. 386 11.g Packet Pg. 387 11.g Packet Pg. 388 11.g Packet Pg. 389 11.g Packet Pg. 390 11.g Packet Pg. 391 11.g Packet Pg. 392 11.g Packet Pg. 393 11.g Packet Pg. 394 11.g Packet Pg. 395 11.g Packet Pg. 396 11.g Packet Pg. 397 11.g Packet Pg. 398 11.g Packet Pg. 399 11.g Packet Pg. 400 11.g Packet Pg. 401 11.g Packet Pg. 402 11.g Packet Pg. 403 11.g Packet Pg. 404 11.g Packet Pg. 405 11.g Packet Pg. 406 11.g Packet Pg. 407 11.g Packet Pg. 408 11.g Packet Pg. 409 11.g Packet Pg. 410 11.g Packet Pg. 411 11.g Packet Pg. 412 11.g Packet Pg. 413 11.g Packet Pg. 414 11.g Packet Pg. 415 11.g Packet Pg. 416 11.g Packet Pg. 417 101 Lytton -- Positive Outcomes and Public Benefits Analysis (Prepared by Applicant) 1. Residential Units (a) We are providing 14 rental, one-bedroom and studio residences. (b) These units are within 150 feet of the fixed rail transit line for TOD goals (c) These units meet the City’s housing element Goal and Programs for locating housing near fixed rail transit lines. (d) Rental units serve our employee base with no school impacts. (e) In Palo Alto rental units are all relatively affordable rather than purchasing a home. (f) 14 units with a high affordability component meet RHNA requirements for the City with the State and ABAG. (g) 3 of the 14 units (20%) will be at low income (60% county median income) rental levels in order to qualify for two “concessions” under SB1818. (h) 4 of the 14 units will be at Palo Alto’s affordable standard for moderate income SPECIFICALLY 4 OF THE UNITS COUNT AS PUBLIC BENEFIT SINCE THEY ARE IN EXCESS OF ANY CITY BMR REQUIREMENT AND IN EXCESS OF THE 3 UNITS THAT QUALIFY FOR SB1818 CONCESSIONS. THE VALUE OF 7 UNITS IS ABOUT $3.5M+ AND FOR 4 UNITS CLOSE TO $2.5M 2. Ground Floor Retail That is not Compelled by the Zoning Code (a) BMR Ground Floor Retail (or non-profit) – for 1,550 sf – 50% market rent for 10 year term. This will be the first retail BMR in Palo Alto – we will work for standards with Staff. (b) No office user on Ground Floor for full 4,215 sf (only retail, personal services of financial services) – this is not compelled under CD-C. Both the BMR Retail unit and prohibition against ground floor office users are public benefits of very substantial cost to Applicant. 3. LEED Gold Certified Building. (a) 101 Lytton will be the largest office building certified as LEED Gold in Palo Alto - this establishes a leadership presence for the building and for Palo Alto. 4. Progressive Environmental/Climate and Transportation Improvements. (a) Two EV Charging stations will be installed on Alma Street with one Class 3 Charger and one Class 2 – based on City Approvals of standards for the chargers and parking management. The Applicant will incur all costs of installing the EV stations. The cost of electricity and operating expenses will be the responsibility of future users. Attachment H 11.h Packet Pg. 418 (b) Two EV Charging stations will be installed in the garage for the building. These chargers are of public benefit because they cannot be compelled by Code. (c) One Zip Car rental unit will be installed on the ground level parking behind the building that is open to the public. (d) Annual Contribution of $10,850 to Tenant for a 10 year term to be used for CalTrain go-passes that are not mandated by the City or any TDM Plan. These progressive vehicle devises will establish 101 Lytton and the City as leaders and this is a significant Public Benefit. 5. Parking Benefits and Major Contribution to City Transportation Planning. (a) The Applicant will contribute sufficient funds to enable the Staff to initiate a parking analysis and comprehensive plan for Downtown parking improvements that can include electronic parking availability signage, the possible use of parking lift systems that do not require attendants for use at public lots, or financial and planning analysis of the further addition of public parking structures. The Applicant and the City have not yet defined the project or the Applicant’s contribution level – This will be defined before appearance before the City Council and finalization of the PC Ordinance. (b) Consider making between 15-25 of the private parking spaces behind and beneath the building available for public use in evenings and weekends. We will finalize this component before City Council adopts a PC Zone Ordinance and with the assistance of a safety consultant for public/private ingress and egress. 6. Extensive Public Improvements. (a) The Applicant will provide significant road way improvements including improved turn pockets from Alma onto westbound University and from University South bound onto Alma. Re-striping and re-shaping Alma near Hamilton Ave., signalization improvements. To the extent these are not required CEQA mitigations that can be compelled by the City, these are public benefits. (b) Canopy enhancement on City property on the west side of Alma with 13 trees and extensive sidewalk and safe planting accommodations for health of the new trees. These trees on west Alma will create a great future canopy and protection from the sun of much of Alma Street. (c) Sidewalk improvements on Alma Street and Lytton Avenue that greatly enhance the pedestrian experience and sidewalk width on these streets, these excess widths and design features could not be imposed as Conditions of Approval and so they are valuable Public Benefits. (d) Pedestrian cross walk improvements on Lytton and Alma are public benefits that are not required mitigations and cannot be compelled as conditions of approval. (e) pedestrian “bulb-outs” greatly improve pedestrian safety and shorten the distance for crossing Alma and Lytton – to the benefit of their public users. (f) Further street and safety improvements, including new signalization. 7. City Signage - if Chosen by PTC and City Council. 11.h Packet Pg. 419 (a) The Applicant will contribute a perpetual easement to the City for placement of signage on the upper-most roof/mechanical screen for placement of a leadership sign such as “Palo Alto”. This can be a tremendous gateway sign visible to all train passengers – and of high quality. 8. “Gateway” Design for Further Palo Alto Leadership Identification. (a) the Gateway Design of the Building, of course, benefits the applicants and its tenants with a “private benefit”. Nevertheless, nearly all previous PC Zone approvals in Palo Alto have recognized the importance of a building and its use for a particular site as adding greatly to the character of the Downtown as an office, dining, and retail center. These land use and urban design accomplishments have been identified as public benefits for: 250 University, 529 Bryant, 251 University, 531 Cowper, 525 Bryant 400 Emerson, 499 University, 260 Homer, 737 Bryant, and 820 Ramona all of which have been successful PC Zone Districts or a component of a Specific Plan and all approved, without controversy, since 1989. 11.h Packet Pg. 420 11.i Packet Pg. 421 0-3 1 - 0 0 5 398 74' 4" A 1" C U 12-1 940 C U T O FF 10-20-1971 X X 11.i Packet Pg. 422 11.i Packet Pg. 423 101 Lytton Avenue - Improvements to Public Right-of-Ways 1 Install and upgrade traffic signal at the intersection of Lytton and Alma, plus install high visibility crosswalk striping. 1 Provide new bicycle racks per City standard and street trees in front of the project along Alma and Lytton. 2 Install southbound left turn lane and associated median and striping at Alma and University ramp (north ramp) to facilitate southbound left turns from Alma to westbound University. 2 Install all new sidewalk, curb, gutter, and driveway approach in the public right of way along the property per Public Works, and eliminate 3 existing driveways. 3 Install center median on Alma between University and Lytton. 3 Install two-way, center left turn lane on Alma between Lytton and Everett to a) improve vehicle storage for southbound left turn from Alma to eastbound Lytton and b) improve access to adjacent properties. 4 Install upgraded bike lanes and markings: northbound bike lane on Alma between University and Lytton; westbound bike lane and "bike box" on Lytton at Alma intersection, and southbound bike lane on Alma approaching Lytton. 5 Install pedestrian bulbout along project frontage at Lytton and Alma corner to shorten pedestrian crossing distances and walk times while improving safety. 6 Plant 13 new street trees within existing approx. 350' long planter strip on southwest side of Alma between Lytton and Everett. 1 Install left turn median shelter lane and supporting median and striping at Alma / University (south ramp) to facilitate westbound left turns from University ramp to southbound Alma. 7 Install southbound left turn on Alma to eastbound Everett. No change to hours of use proposed. 8 Expand sidewalk and curb 4 feet wider along Lytton project frontage to enhance pedestrian environment. 9 Reset replacement street tree locations along Alma from existing sidewalk planting strips to new planters located within parking lane, to increase the usable walking width from 8'-3" to approximately 10'-3". 10 Replace 2 existing streetlights with 10 new post-top streetlights along Alma and Lytton at approximately 28 foot spacing to provide safe and attractive lighting. 11 Provide 2 electric vehicle charging stations on Alma for electric vehicles. 12 Street furnishings - provide bench for pedestrian seating on Alma and provide new sidewalk trash/recycling receptacles along entire project frontage. Public Benefits Conditions of Approval Mitigation 11.j Packet Pg. 424 11.k Packet Pg. 425 11.k Packet Pg. 426 SECTION VI - EXHIBIT A 101 Lytton Parking Requirements per Palo Alto Municipal Code SF Proposed Commercial FAR (49,024 SF of Office & 4,215 SF of Retail)53,239 exemption of 1:1 FAR for Downtown Assessment District (PAMC 18.52.060)-14,400 exemption of 200 SF for every building (PAMC 18.52.070(a)(1)(D)-200 TOTAL COMMERCIAL SQUARE FOOTAGE SUBJECT TO PARKING REQUIREMENTS 38,639 Required number of Parking Spaces for 38,639 SF of Commercial space # of Stalls 4 per 1,000 SF parking ratio in assessment district (PAMC 18.52)155 Total Parking stalls required for commercial component of project 155 30% reduction in parking ratio due to proximity to transit,TOD, & TDM program (PAMC 18.52)-46 Required number of Parking Spaces for Eight (8) 1BR Residential Units & Six (6) Studio Units # of Stalls 1.0 parking spaces per 1 BR unit must be provided (per Govt Code 65915)8 1.0 parking spaces per Studio unit must be provided (per Govt Code 65915)6 Total Parking stalls required for residential component of project 14 TOTAL PARKING REQUIREMENT 123 TOTAL STALLS PROVIDED FOR 101 LYTTON PROJECT 130 11.l Packet Pg. 427 11.m Packet Pg. 428 11.m Packet Pg. 429 11.m Packet Pg. 430 11.m Packet Pg. 431 11.m Packet Pg. 432 11.m Packet Pg. 433 11.m Packet Pg. 434 11.m Packet Pg. 435 11.m Packet Pg. 436 11.m Packet Pg. 437 11.m Packet Pg. 438 11.m Packet Pg. 439 11.m Packet Pg. 440 11.m Packet Pg. 441 11.m Packet Pg. 442 ______________________________________________________________________________________________________________ 953 INDUSTRIAL AVE, SUITE 113 PALO ALTO, CALIFORNIA 94303 650/327-9148 THE LEAGUE OF WOMEN VOTERS OF PALO ALTO Palo Alto City Council 250 Hamilton Ave Palo Alto, CA 94301 March 7, 2012 Dear Mayor Yeh, and Council Members, Please approve the mixed-use office/retail/residential project proposed at 101 Lytton that is on your agenda for March 12. The League of Women Voters of Palo Alto supports providing diverse housing opportunities in Palo Alto and encourages placement of denser housing near transit and services. The 101 Lytton Development ideally suits these criteria. The 6 studio and 8 one-bedroom units, including 7 BMR units, are properly sized for a downtown location. The proximity of the train station and the transit center fulfills Palo Alto's goal of increasing housing near transit. The development provides housing particularly appropriate for downtown workers. Additionally, the proposed retail with its widened sidewalks and attractive streetscape will be a vibrant addition to this area of downtown. We believe the additional height required to achieve these goals is appropriate at this location and will not interfere with the surroundings. For all of these reasons the League is enthusiastic about the development and urges your support. Sincerely, Mary Alice Thornton, President League of Women Voters of Palo Alto 4mat@sbcglobal.net 11.m Packet Pg. 443 THE PROJECT Transportation Demand Management Plan (Transportation Action Plan) Prepared for: Lytton Gateway, LLC Prepared by: (916) 471-5827 In association with Wendy J. Hoyt September 12, 2011 11.n Packet Pg. 444 TABLE OF CONTENTS TDM EXECUTIVE SUMMARY ................................................................................................... i 1.0 INTRODUCTION AND PURPOSE ............................................................................................ 1 Figure 1 - City of Palo Alto’s Sustainable Policy and Reduction Strategies ................ 3 2.0 TRANSPORTATION DEMAND MANAGEMENT DEFINITION .................................................. 5 Table 1 - Summary of Community, Business, and Commuter Benefits ...................... 6 3.0 SAN FRANCISCO BAY AREA EMPLOYEE TRANSPORTATION MODE SPLIT ............................ 6 Table 2 - Comparable Commute Mode-Use Rates ..................................................... 7 4.0 PROJECT DESCRIPTION ......................................................................................................... 7 Table 3 - 101 Lytton Office Project Information......................................................... 7 101 Lytton Project Location Map ............................................................................... 8 SECTION I – TDM INFRASTRUCTURE AND PHYSICAL MEASURES ........................................... 10 5.0 COMMUNITY CONNECTIVITY ............................................................................................. 10 6.0 RAIL STATION PROXIMITY .................................................................................................. 11 6.1 Direct Route to Transit/Public Transportation Access ............................................ 11 6.2 Pedestrian Connections ........................................................................................... 12 Table 4 - Transit Proximity to 101 Lytton Avenue .................................................... 12 7.0 BICYCLE AMENITIES ............................................................................................................ 13 7.1 Bicycle Storage – Long-Term and Short-Term ......................................................... 13 Table 5 - Bicycle Parking .......................................................................................... 13 Figure 2 - Sample Class I Bicycle Lockers and Bicycle Cage ...................................... 14 Figure 3 - Sample Class II Bicycle Racks ................................................................... 14 7.2 Showers and Clothes Lockers .................................................................................. 15 Table 6 - Shower and Clothes Lockers ...................................................................... 15 Santa Clara County Bicycle Map .............................................................................. 16 City of Palo Alto Bicycle Map ................................................................................... 17 8.0 PARKING MANAGEMENT ................................................................................................... 18 8.1 Reduced Parking Supply ........................................................................................... 18 8.2 Fuel-Efficient Vehicle Designations .......................................................................... 18 8.3 Carpool and Vanpool Designations .......................................................................... 19 Table 7 - 101 Lytton Project Parking Space Allocations ........................................... 19 8.4 Preferential Parking Space Placement ..................................................................... 20 Figure 4 - Sample Carpool Parking Permit ............................................................... 20 Figure 5 - Sample Striped Carpool Parking Space .................................................... 20 8.5 Electric/Plug-in Electric Charging Stations ............................................................... 21 8.6 Passenger Loading Zone .......................................................................................... 21 8.7 Motorcycle and Scooter Parking Placement............................................................ 21 9.0 TRANSPORTATION AND COMMUTE INFORMATION KIOSK .................................................. 22 Figure 6 - Sample Transportation and Commute Information Board ...................... 22 10.0 PROJECT AMENITIES ........................................................................................................... 23 11.n Packet Pg. 445 11.0 INFRASTRUCTURE FOR ALTERNATIVE WORK SCHEDULES ................................................. 24 11.1 Flextime Building Infrastructure .............................................................................. 24 11.2 Teleworking Infrastructure ...................................................................................... 25 11.3 Compressed Work Week Building Infrastructure .................................................... 25 SECTION II – PROGRAMMATIC TDM MEASURES ................................................................... 26 12.0 TENANT SERVICES, MANAGEMENT, AND COMMUTER OUTREACH .................................. 26 12.1 Tenant Performance and Lease Language – TDM Requirements ........................... 26 12.2 Designated Employer Contact ................................................................................. 26 12.3 Initial Tenant TDM Training ..................................................................................... 27 12.4 Transportation Coordinator/Commuter Assistance ................................................ 27 12.5 Employee Commuter Marketing ............................................................................. 28 Employee Commute Flier......................................................................................... 29 12.6 New Facility Kick-off Event ....................................................................................... 30 12.7 Promotional Programs and Employee Outreach ..................................................... 30 12.8 101 Lytton Project Employee Commute Web Page and Resources ........................ 30 Figure 7 - Sample Employee Commute Resource Page............................................ 31 13.0 CARPOOL AND VANPOOL RIDE-MATCHING PROMOTIONS ............................................... 32 13.1 Regional 511 Ride-Matching Services ...................................................................... 32 Figure 8 - 511 Rideshare Web Page ......................................................................... 33 13.2 Other Ridematching Resources ............................................................................... 34 14.0 BICYCLE RESOURCES ........................................................................................................... 34 15.0 TRANSIT RESOURCES .......................................................................................................... 35 Table 8 - 101 Lytton Project Transit Access Table .................................................... 35 VTA Transit System Map .......................................................................................... 37 SamTrans Transit System Map ................................................................................. 38 Palo Alto and Caltrain Shuttle Route Maps ............................................................. 39 SECTION III – MONITORING AND REPORTING ...................................................................... 40 16.0 MONITORING AND REPORTING ......................................................................................... 40 16.1 Notice of Implementation........................................................................................ 40 16.2 Annual Five-day Employee Commute Survey .......................................................... 40 16.3 Annual Summary Report .......................................................................................... 40 Table 9 - Sample Commute Survey Summary .......................................................... 41 16.4 Greenhouse Gas Emissions Reduction Assessment ................................................ 41 Figure 9 - Sample GHG Emission Reductions ........................................................... 41 17.0 CONCLUSION ...................................................................................................................... 42 11.n Packet Pg. 446 ATTACHMENTS List of Eligible Clean Fuel Vehicles Nearby Amenities Radius Map List of Nearby Amenities (personal services, restaurants, coffee, retail/sundry, banking, etc.) San Mateo County Commuters Carpool Incentive Flier – You Pool, We Pay! Free Transit Ticket Distribution Program – Try Transit Registration APPENDIX A Summary of Employer Commute Features HDR QUALIFICATIONS 11.n Packet Pg. 447 September 12, 2011 Page | i TDM EXECUTIVE SUMMARY Adequate parking, traffic congestion and air pollution are critical concerns in maintaining a healthy economy and lifestyle for the City of Palo Alto. Traffic congestion results in time lost to residents and commuters and increased demand on City fiscal resources for roadway construction and maintenance. According to the U.S. Environmental Protection Agency, “mobile sources account for more than half of all the air pollution in the United States. The primary mobile source of air pollution is the automobile. …today's motor vehicles are still responsible for up to half of all the emissions released into the air.”1 “In the Bay Area, the transportation sector accounts for more than 50 percent of air pollution, and more than 40 percent of greenhouse gas emissions.”2 Specifically in the City of Palo Alto, it is estimated that mobile sources, such as automobiles, account for 40 percent of all air pollution.3 As a rising leader in sustainable green building projects the applicant, Lytton Gateway, LLC has prepared a Transportation Demand Management (TDM) Plan for their proposed Palo Alto mixed-use development. From conception, the applicant was committed to an integrated mixed-use project and design. In addition to a jobs center the project includes 14 residential units (five of which will be below market rate) and 4,155 square feet of retail use. By providing the retail and residential components it also provides great benefit to the larger community, not just to the site users. This balance of uses is a lynchpin to the TDM program and creates a unique sense of place rather than a stand alone trip generating office use. The design of the 101 Lytton Project meets commute-sustainable standards by incorporating TDM elements. Other contributing and complementary sustainable building efforts include applicable portions of the U.S. Green Building Council’s (USGBC) Leadership in Energy and Environmental Design (LEED) Core & Shell (2009 version) certification and California’s Green Building standards. The applicant has committed to building a LEED Gold project. This development approach reduces parking demand, vehicle trips, air pollution, and traffic congestion and contributes to successful carbon footprint and greenhouse gas reductions for their long-term operations. As implementation and future monitoring requirements stemming from AB32 and SB375 are still pending, property owners, developers, and employers are going to be required to reduce impacts from greenhouse gas (GHG) emissions. By reducing emissions now, this Palo Alto project will be a contributor in this mitigation process. 1 http://www.epa.gov/apti/course422/ap3a.html 2 Bay Area Air Quality Management District, Aaron Richardson, Public Information Officer 3 Climate Protection Plan, City of Palo Alto, 2005 The U.S. Green Building Council (USGBC) encourages and accelerates global adoption of sustainable green building and development practices through the creation and implementation of universally understood and accepted tools and performance criteria. www.usgbc.org 11.n Packet Pg. 448 September 12, 2011 Page | ii This TDM Plan addresses alternatives to onsite parking needs and employee commuter activities that reduce non drive-alone transportation. This document provides supporting justification for reduced parking. In addition, this plan supports the alternative transportation mode-use goals that address both traffic and air quality concerns in the City of Palo Alto. TDM measures specifically developed for the 101 Lytton project include (but are not limited to) preferential carpool parking, secure bicycle parking; and an onsite commuter kiosk for alternative transportation users. The plan has a variety of infrastructure and incentive-based measures, which encourage all forms of alternative transportation mode-use, such as carpool, vanpool, transit, bicycling, walking, and telecommuting. The applicant is committed to encouraging tenant and employee participation and strongly supports employee commute programs. The project’s trip reduction activities and transportation mode-use rate will be monitored annually, with the first employee commute survey to be conducted one year after the City’s approval of the TDM Plan. An alternative transportation mode-use survey report will be submitted to the City’s Principal Planner following the completion of the annual employee commute survey. The measures and elements contained in this plan are consistent with other well performing employee TDM commute programs in the Greater San Francisco Bay Area. Summary list of TDM measures proposed include: Existing Transportation Infrastructure and Services • Free Palo Alto Community Shuttles (Marguerite, Embarcadero, and Crosstown) • Commuter Rail and Bus Transit: Caltrain – VTA – SamTrans • Bike Station Palo Alto (http://home.bikestation.com/paloalto) • VeloCity Bicycle Taxicab (http://velocitycabs.com/) 101 Lytton TDM Infrastructure and Physical Measures o Community Connectivity – Mixed-use, Pedestrian and Transit Oriented Design (LEED standard) o Rail Station Proximity within 100 feet walking distance (LEED standard) o Reduce Parking Supply o Provide Clean Fuel Vehicle Parking Spaces (LEED standard) o Provide Carpool and Vanpool Parking Spaces (LEED standard) o Passenger Loading Zone (garage space permitting) o Provide Motorcycle and Scooter Parking Placement o Electric and Plug-in Electric Charging Stations – two units on-street o Provide Bicycle Parking – Long-Term and Short-Term (LEED standard) o Provide Showers and Clothes Lockers (LEED standard) o Install Transportation Kiosk(s) o Include Onsite and significant nearby amenities (e.g., retail, café, vending, ATM, etc.) o Incorporate Alternative Work/Telework Infrastructure 11.n Packet Pg. 449 September 12, 2011 Page | iii Buildings will be Gold LEED certified and may include the following measures: • Community Connectivity – Construct or renovate a building on a site that is located on a previously developed site, is within a ½-mile of residential area with average density of 10 units per acre net, is with in ½ mile of at least 10 basic services, and has pedestrian access between the building and the services. • Public Transportation Access – Locate the project within ½ -mile walking distance (measured from a main building entrance) of an existing or planned and funded commuter rail, light rail or subway station. • Bicycle Storage and Changing Rooms – Provide secure bicycle racks and/or storage within 200 yards of a building entrance for 3% or more of all building users (calculated on average for the year) o Provide shower and changing facilities in the building, or within 200 yards of a building entrance, for 0.5% of fulltime equivalent (FTE) occupants. • Low-Emitting and Fuel-Efficient Vehicles – Provide preferred parking for low-emitting and fuel-efficient vehicles for 5% of the total vehicle parking capacity of the site. • Parking Capacity – Provide preferred parking3 for carpools or vanpools, marked as such, for 3% of total parking spaces. Sustainable Site LEED Credits: Credit 2: Development Density and Community Connectivity (5 Points) Credit 4.1: Public Transportation Access (6 Points) Credit 4.2: Bicycle Storage and Changing Rooms (2 Points) Credit 4.3: Low-Emitting and Fuel-Efficient Vehicles (3 Points) Credit 4.4: Parking Capacity (2 Points) Buildings will meet California Green Building Standards The 2010 California Green Building Standards Code, which is Part 11 of the California Building Standards Code in Title 24 of the California Code of Regulations. Part 11 is also known as the CALGreen Code. 11.n Packet Pg. 450 September 12, 2011 Page | iv Programmatic TDM Measures • TDM Tenant Lease Language and Tenant to designate a contact • Employer/Tenant TDM Training (provided by applicant) • Lytton Project Transportation Coordinator – Commuter Assistance, Employee Outreach, Transit Planning, and Rideshare Matching • Project Commute Flier • Kick-off Commuter Event (at 75% occupancy) • Promotional Programs (Bike to Work Day, Caltrain Day, Spare the Air Days, etc.), e-newsletters, and updates • Carpool Promotions • Bicycle Resources • Transit Resources • Annual Onsite Transportation/Commute Spare the Air Fair • Encourage Employers to provide: o Caltrain GO Pass Program o VTA ECO Pass Program o Commuter Choice – Pre Tax Options o Commute Allowances and/or Subsidies o Regional Carpool and Vanpool Incentive Programs o San Mateo County Commuters (Only) Free Try Transit Program o Flextime and Off-Peak Commuting o Teleworking/Telecommuting o Compressed Work Week o Emergency Ride Home program o Employee Transportation Coordinator TDM Monitoring and Reporting • Notice of TDM Program Implementation – As-Built Summary (at completion of construction and tenant occupancy) • Annual Employee Commute Survey and Summary Report • Greenhouse Gas Reduction Assessment 11.n Packet Pg. 451 September 12, 2011 Page | 1 1.0 INTRODUCTION AND PURPOSE The comprehensive plan of commute options and onsite measures (identified in this report) are essential to realizing the trip reduction benefits of the project. These factors will provide the momentum to achieve a desired trip reduction needs for the project. TDM is a combination of services, incentives, facilities, and actions that reduce single occupant vehicle (SOV) trips to help relieve traffic congestion, parking demand, and air pollution problems. The TDM measures outlined below are expected to support significant reduction in commuter trips. TDM successes will also have a significant impact on GHG emission reductions. For example, a solo driver, commuting by car 20 miles round-trip daily that switches to public transportation, can reduce his/her annual CO2 emissions by 2.4 tons (4,800 pounds) per year. This is equivalent to a 10% reduction in all greenhouse gases produced by a typical two-adult, two-car family. 4 By eliminating one car and taking public transportation for all trips instead of driving, a savings of up to 30% of CO2 emissions can be realized. It is estimated that the same two- adult, two-car household could save an average of $6,251 (in 2007) annually by using public transportation instead of one of their automobiles.5 A summary of city, county, and state policy goals related to sustainability, congestion management follows below. 4 Public Transportation’s Contribution to U.S. Greenhouse Gas Reduction, Science Applications International Corporation, September 2007 5 ibid 11.n Packet Pg. 452 September 12, 2011 Page | 2 Palo Alto Climate Action and Sustainability Efforts The City of Palo Alto has a long history of environmental stewardship in maintaining a safe, healthy, and sustainable city. The City of Palo Alto recognizes the need for safeguards to protect the environment as well as the importance of maintaining a stable climate system for current and future residents. As a “CO2 Pledging Partner of Sustainable Silicon Valley, City of Palo Alto pays annual dues and makes a voluntary commitment to reporting and reducing CO2 emissions.”6 In February 2006, the City of Palo Alto joined the California Climate Action Registry (Registry), a distinguished group of organizations demonstrating leadership through voluntarily action on climate change. As a member, Palo Alto works with the Registry to track, report, and certify its GHG emissions annually, the main drivers of global warming. In June 2007, the City of Palo Alto completed an assessment and passed a city-operation Climate Action Plan. The City’s Sustainable Policy and Reduction Strategies are provided in Figure 1. Excerpts from General Plan Community Vision – Citywide Goals, Policies and Action Items7 Goals of the City’s Climate Protection Plan include: Short Term Goal: By 2009 the City will reduce emissions by 5 percent from 2005 emission levels for a total reduction of 3,266 metric tons of CO2. Medium Term Goal: By 2012 the City and Community will reduce emissions by 5 percent from 2005 emissions levels for a total reduction of 39,702 metric tons of CO2. Long Term Goal: By 2020, the City and Community will reduce emissions by 15 percent of 2005 levels, equal to 119,140 metric tons of CO2, which will bring the community in line with State reduction goals. 6 Green Palo Alto, City of Palo Alto Climate Action Plan – City Operations FINAL REPORT June 2007 7 http://Palo Alto.ca.gov/LinkClick.aspx?fileticket=yRr9e_hoMnY%3d&tabid=353 11.n Packet Pg. 453 September 12, 2011 Page | 3 Figure 1 City of Palo Alto’s Sustainable Policy and Reduction Strategies 11.n Packet Pg. 454 September 12, 2011 Page | 4 Santa Clara County Congestion Management Program8 Enacted in the early 1990s, California’s Congestion Management Program (CMP) statutes encourage local jurisdictions to develop comprehensive transportation improvement programs that reduce traffic congestion, improve land-use decision-making and enhance air quality. The state’s CMP statutes require regular monitoring to determine whether local jurisdictions are in conformance with all elements of the CMP. In Santa Clara County, CMP member agencies submit their monitoring data to VTA on an annual basis. If a member agency fails to meet CMP standards or to implement the program’s requirements, it could be found to be in non- conformance with the CMP and thus risk forfeiting a portion of its gas tax subventions from the state. State GHG Guideline and Policy Setting California is rated 12th to 16th as the largest emitter of CO2 and is responsible for approximately 2 percent of the world’s CO2 emissions. Below are summaries of the most pertinent State bills that address efforts to reduce GHG emissions. ♦ Assembly Bill 32, California Climate Solutions Act of 2006 - requires that statewide GHG emissions be reduced to 1990 levels by the year 2020. This first-in-the-world comprehensive program of regulatory and market mechanisms is designed to achieve real, quantifiable, and cost-effective reductions of GHG.AB 32 establishes CARB as the agency responsible for monitoring and reducing GHG emissions. ♦ Senate Bill 375 - establishes improved land use and transportation policy supporting AB32; providing a means for achieving the AB 32 goals for cars and light trucks through land use changes. This legislation created potentially revolutionary changes in California's regional planning processes for housing and transportation by mandating the creation of sustainable regional growth plans. These plans are expected to double the GHG emission reduction targets that local governments must meet through land use planning. 8 VTA Transportation Handbook, A Primer for Understanding Transportation in the Silicon Valley, 2009 Climate Change Facts • The United States is responsible for 22% of the world’s total greenhouse gas emissions with transportation producing one-third of it, primarily in the form of CO2 emissions. • Each Californian produces an average of 34 tons of greenhouse gases per year, with a major component being private automobile use. • A person, solo commuting by car 20 miles round-trip daily, produces approximately 2.4 tons (4,800 pounds) of CO2 emissions annually. • With 873,000 employees working in Santa Clara County, this amounts to over 2,000,000 tons of CO2 released into the atmosphere from the daily work commute alone. Source: VTA Public Transportation, VTA Combating Climate Change, August 2008 11.n Packet Pg. 455 September 12, 2011 Page | 5 2.0 TRANSPORTATION DEMAND MANAGEMENT DEFINITION The basic premise of TDM is the maximum utilization of existing transportation resources. The City of Palo Alto, as is typical of other urban areas in the United States, has millions of dollars invested in roadway infrastructure and public transit infrastructure. The goal of TDM is to take advantage of these major capital investments efficiently and economically. The following are basic goals that can be achieved through effective utilization of TDM measures: 1) Convert trips to an alternative mode of transportation (e.g., transit, carpools or vanpools, bicycling or walking). 2) Shift travel to less congested facilities by providing traveler information systems that warn motorists about delays or alternative routes. 3) Support other technological solutions (e.g., compressed natural gas, electric/hybrid vehicles, or other zero emission vehicles). 4) Eliminate or shift trips from peak periods (e.g., flexible schedules, compressed work weeks, or telecommuting). Current economics and limited resources affect the ability to build and maintain more roads or parking structures. This reality necessitates better utilization of the existing transportation infrastructure (similar to adding a second shift at an existing plant). To that end, TDM measures support the transition to a greater use of existing alternative transportation options. Rideshare Program Benefits In more common terms, TDM is also referred to as ridesharing. Employers who offer and actively promote commute options can improve attendance, productivity, and morale in the workplace. Commuting employees can experience stress and frustration long before their work day officially begins. Moreover, transportation choices improve communities and business environments by decreasing both traffic congestion and GHG emissions. A list of community, employer and employee-related commuter benefits derived from TDM planning are shown in Table 1. 11.n Packet Pg. 456 September 12, 2011 Page | 6 Table 1 Summary of Community, Business, and Commuter Benefits COMMUNITY & BUSINESS Benefits COMMUNITY & COMMUTER Benefits Improve recruitment and retention rates Freedom from traffic jams Reduce the need/demand for parking Ability to work or relax during commute time and reduce stresses/improve quality of life Enhance company commuter benefits package Increased time within the day to read, talk with friends, or get ahead at work Improve employee access to transit Save hundreds of dollars a year in auto expenses (gas, insurance, wear & tear, maintenance, tolls, etc.) Enhance community relations Use pre-tax dollars to pay for public transportation expenses Improve employee morale and productivity Feel secure with free emergency ride home program (tenant provided) Alleviate employee stress and expense Lower insurance premium on personal vehicle No/low cost programs for employers Get to work and get home on time regardless of the weather, traffic accidents, breakdowns, etc. Reduce traffic congestion Help reduce environmental pollution and overcrowded roads/congestion Access a larger employee base Reduce greenhouse gas emissions 3.0 SAN FRANCISCO BAY AREA EMPLOYEE TRANSPORTATION MODE SPLIT According to the 2007-2009 American Community Survey (based on the Census Bureau's Population Estimates Program) the overall Santa Clara County alternative mode-use rate is approximately 23 percent, with the Bay Area regional rate comprising approximately 36 percent. The larger Bay Area alternative mode-use rate reflects the increased prevalence of paid parking in urban core areas, whereas parking is free or much less expensive in much of Santa Clara County and in the City of Palo Alto. The estimated the City of Palo Alto mode-use rate to be approximately 34 percent. Table 2 shows the comparison of alternative transportation mode-use rates (non drive alone commuters) for the City of Palo Alto, Santa Clara County, and the greater Bay Area Region. Also shown are commute survey results for a nearby office site in Palo Alto. The alternative transportation mode-use rate for Facebook (in Palo Alto) was nearly 30 percent in spring 2011. 11.n Packet Pg. 457 September 12, 2011 Page | 7 Table 2 Comparable Commute Mode-Use Rates 4.0 PROJECT DESCRIPTION The 101 Lytton project site includes 65,070 square feet of mixed-use: office space, ground floor retail, and third-floor residential space. Onsite parking will accommodate 123 vehicle spaces. As a new mixed-use and office project, four reserved carpool spaces and six fuel-efficient vehicle parking spaces are planned. A total of seven bicycle facilities will be available for this project. Five Class I bicycle lockers will be available in the garage at no charge to employees; and two bicycle racks (Class II) will be provided for users at the street entrance. Showers and lockers will also be provided for bicycle, pedestrian, and other alternative commuters. The Palo Alto Caltrain Station (transit center), located at 95 University Ave, is across the street from the project site. There are significant restaurant and food service amenities in the immediate surrounding area. The integrated 4,155 square feet retail component, vending food and drink, and possible tenant-provided valet services (e.g., dry cleaning) will help to create a self-sufficient project, further reducing the number of trips made daily to and from the project. A summary of project information, including a breakdown of the office area square footage, is shown in Table 3. A project location map is provided on page 8. Table 3 101 Lytton Project Information Project Information 2011 Application Use Type: Office, Retail, & Residential (mixed-use)100% Potential Office Employees @ build-out (3/1,000')129 Usable Office Area Square Footage 43,032 Total Parking Spaces Provided at Project 123 Commute Survey Locations 2007-2009 American Community Survey 2011 Commute Survey Conducted by HDR San Jose-San Francisco-Oakland (Combined Statistical Area)32.5%n/a San Jose-Sunnyvale, Santa Clara (Statistical Metropolitan Area)23.6%n/a Santa Clara County 23.3%n/a City of Palo Alto 34.3%n/a Facebook Campus (Palo Alto)n/a 29.6% 11.n Packet Pg. 458 September 12, 2011 Page | 8 101 Lytton Project Location Map 11.n Packet Pg. 459 September 12, 2011 Page | 9 Considerable pedestrian improvements are being made by the applicant, including: • Shortened pedestrian crosswalks at Lytton and Alma • Widened promenade sidewalks along Lytton and Alma • Street trees in planters separating street parking stalls • Continuous pedestrian experience along Lytton with building frontage and retail • Pedestrian-scaled awnings along Lytton and Alma This TDM Plan is designed to address employee trips associated with a mixed-use and office project and contains the appropriate measures and elements that are consistent with other San Francisco peninsula region commute programs. An array of alternative transportation mode- use strategies is included in the following three sections: I. Infrastructure and Physical Measures II. Programmatic Measures III. Monitoring and Reporting The remainder of this TDM Plan defines the measures proposed specifically for the 101 Lytton project. 11.n Packet Pg. 460 September 12, 2011 Page | 10 1 SECTION I – TDM INFRASTRUCTURE AND PHYSICAL MEASURES The following physical infrastructure measures are designed to support alternative transportation commuters. These measures are TDM components that will be installed during the construction of the project. 5.0 COMMUNITY CONNECTIVITY 101 Lytton will become an iconic, pedestrian-friendly, and transit-oriented mixed use project that embraces the best of Palo Alto’s goals and policies. Some of the mixed-use, pedestrian, and transit oriented design features include orienting building toward transit stops, tying into adjacent bicycle and pedestrian trails/circulation, inclusion of a retail component and onsite housing. This connectivity provides a high-level of pedestrian, bicycle and transit access for the project and meets the criteria for LEED Credit 2: Development Density and Community Connectivity. A5.103 Site Selection CALGreen Section: A5.103.1 Community connectivity. Where feasible, locate project on a previously developed site within a ½ mile radius of at least ten basic services, readily accessible by pedestrians, including, but not limited to, one each of bank, place of worship, convenience grocery, day care, cleaners, fire station, barber shop, hardware store, laundry, library, medical clinic, dental clinic, senior care facility, park, pharmacy, post office, restaurant (two may be counted), school, supermarket, theater, community center, fitness center, museum or farmers market. Intent The intent of this code provision is to ensure the reuse of existing sites in developed areas for non-residential districts to help minimize the impact of new site development on undeveloped lands, local air and water quality, as well as to minimize the greenhouse gas emissions generated from the development of a new site. SS Credit 2: Development Density and Community Connectivity Intent To channel development to urban areas with existing infrastructure, protect greenfields and preserve habitat and natural resources. Requirements – Community Connectivity Construct or renovate a building on a site that is located on a previously developed site, is within a ½-mile of residential area with average density of 10 units per acre net, is with in ½ mile of at least 10 basic services, and has pedestrian access between the building and the services. 11.n Packet Pg. 461 September 12, 2011 Page | 11 6.0 RAIL STATION PROXIMITY The 101 Lytton Project will be located within easy walking distance very near (measured from a main building entrance) to an existing commuter rail station which meets the LEED criteria. In fact, the Palo Alto Caltrain station is located at 95 University Avenue and is approximately 100 feet from the 101 Lytton Project – literally across the street. A particular advantage for this project is its very near proximity to local Santa Clara Valley Transportation Authority (VTA) bus transit service and the Palo Alto Caltrain Station. In addition, SamTrans, free local shuttles, and Dumbarton Bridge services from AC Transit are available at the Palo Alto Transit Center. 6.1 Direct Route to Transit/Public Transportation Access Transit services total more than 850 trips per day providing superior transit connectivity for future employees at the worksite. Section 15.0 shows the number of transit trips provided for employees who will occupy this project. This high-level of transit access meets the criteria for LEED Credit 4.1: Public Transportation Access. SS Credit 4.1: Alternative Transportation—Public Transportation Access Intent To reduce pollution and land development impacts from automobile use. Requirements – Rail Station Proximity Locate the project within 1/2-mile walking distance (measured from a main building entrance) of an existing or planned and funded commuter rail, light rail or subway station. 11.n Packet Pg. 462 September 12, 2011 Page | 12 6.2 Pedestrian Connections Safe, convenient and well-lit pedestrian paths will be provided, utilizing the most direct route, to the nearest shuttle or transit stop from the project. Lighting, landscaping, and building orientation will be designed to enhance pedestrian safety, and patio spaces/widened sidewalk areas will be provided at the building. Pedestrian spaces can be used for recreation, eating, or other outdoor activities. A summary of transit services in close proximity to the project are shown in Table 4. Table 4 Transit Proximity to 101 Lytton Avenue Caltrain Caltrain operates frequent fixed route commuter rail service seven days a week between San Francisco and San Jose, as well as limited service to and from Gilroy. Caltrain operates on 15 to 30 minute frequencies during the peak periods in the morning and evening. Midday service operates approximately every hour. In total there are 37 weekday northbound trips and 37 weekday southbound trips that serve the Palo Alto Station. There are also several Baby Bullet express trains that serve Palo Alto. The Palo Alto Caltrain Station is located at 95 University Avenue in Palo Alto. Free Palo Alto City Shuttles The City of Palo Alto offers several free shuttles for all employees and residents. Two shuttles operate service from the Palo Alto Transit Center to the downtown area. These routes include the Crosstown and Embarcadero shuttles. Stanford operates the free Marguerite shuttle that serves the Medical Center, Veterans Hospital, and University. SamTrans SamTrans operates bus service throughout San Mateo County. There are two daily SamTrans routes in Palo Alto providing 98 transit trips. Valley Transportation Authority (VTA) VTA operates a comprehensive bus and light rail system throughout Santa Clara Valley. There are 347 daily VTA transit trips that service this Palo Alto site. Dumbarton Express (DB) Transit services from Alameda County are provided by AC Transit. Deer Creek Caltrain Shuttle Shuttle services in Palo Alto for Caltrain include the Caltrain Deer Creek Shuttle. 11.n Packet Pg. 463 September 12, 2011 Page | 13 7.0 BICYCLE AMENITIES The project is surrounded by significant pedestrian and bicycle connections. The 101 Lytton project site has Class I bike paths along Urban Lane and Class II bicycle connections to regional bicycle facilities along Lytton Avenue. The City of Palo Alto supports a wide-range of bicycle facilities. However, some main sections of Alma and Middlefield are rated for extreme caution. A copy of the VTA Santa Clara Bikeways Map is provided on page 16. A Bicycle Map of Palo Alto is provided on page 17. 7.1 Bicycle Storage – Long-Term and Short-Term Free Class I and Class II secure bicycle parking facilities will be provided onsite for bicycle commuters. The Santa Clara Valley Transportation Authority (VTA) bicycle guidelines for this type of mixed and office uses requires seven bicycle parking facilities. The CALGreen bicycle guidelines and LEED standards require fewer bicycle parking facilities. The applicant will install bicycle parking to meet the higher VTA standards. Table 5 shows the number of secure bicycle facilities provided. Figure 2 shows an example of a Class I (long-term) secure bicycle parking facility. Table 5 Bicycle Parking VTA Bicycle Parking Standard Bike Parking Facilities Total Commercial Area Square Footage 43,032 VTA Standard 1 per 6,000 sq. ft.7 Class I - secure, covered bike cage or locker 75%5 Class II - secure bike racks 25%2 Total Bicycle Parking Facilities 7 CALGreen Section: 5.106.4 Bicycle Parking Bike Parking Facilities Estimated Visitor Bicycle Parking 25 Class II - secure bike racks for 5% of vistors 5%1 Employee parking (80% of total parking)98 Class I - secure, covered bike cage or locker 5%5 Total CALGreen Bicycle Parking 6 LEED: Bicycle Parking Bike Parking Facilities Total Peak-hour Employees 129 3% of Employee Users 4 Class I - secure, covered bike cage or locker 75%3 Class II - secure bike racks 25%1 Total Bicycle Parking Facilities 4 11.n Packet Pg. 464 September 12, 2011 Page | 14 Figure 2 Sample Class I Bicycle Lockers and Bicycle Cage Class II (short-term) secure bicycle rack examples are shown below in Figure 3. Class II secure bicycle racks will be placed at the office building. Figure 3 Sample Class II Bicycle Racks 11.n Packet Pg. 465 September 12, 2011 Page | 15 7.2 Showers and Clothes Lockers Showers and clothes lockers will be installed for use by employees who walk or bicycle to work, or those who wish to change clothes after commuting via an alternative mode of transportation. Per LEED standards, shower and changing facilities shall be located in the building, or within 200 yards of a building entrance, for 0.5 percent of Full-Time Equivalent (FTE) of commercial occupants. The applicant will install at least one shower for each gender. Shower and changing facilities will be provided free of charge for all employees. Table 6 shows the number of proposed shower facilities planned for the project. These bicycle parking and shower measures meet the Sustainable Site LEED Credit 4.2: Alternative Transportation: Bicycle Storage and Changing Rooms. Table 6 Shower and Clothes Lockers 101 Lytton Avenue Showers Lockers Male 1 8 Female 1 8 Total Shower and Locker Facilities 2 16 SS Credit 4.2: Alternative Transportation—Bicycle Storage and Changing Rooms Intent To reduce pollution and land development impacts from automobile use. Requirements • Provide secure bicycle racks and/or storage within 200 yards of a building entrance for 3% or more of all building users. • Provide shower and changing facilities in the building, or within 200 yards of a building entrance, for 0.5% of fulltime equivalent (FTE) occupants. 11.n Packet Pg. 466 September 12, 2011 Page | 16 Santa Clara County Bicycle Map 11.n Packet Pg. 467 September 12, 2011 Page | 17 City of Palo Alto Bicycle Map 11.n Packet Pg. 468 September 12, 2011 Page | 18 8.0 PARKING MANAGEMENT The willingness and actual level of employee ridesharing is directly linked to parking convenience, availability, and parking cost. 8.1 Reduced Parking Supply At this project site (101 Lytton Avenue), there will be a total of 123 garage parking spaces allocated to this building. Reduced or constrained parking supports trip reduction and TDM efforts, and discourages single-occupant vehicle (SOV) commuting by limiting an abundance of easy and convenient parking options. Reduced parking availability enhances other alternative transportation mode options. After square footage exemptions and a 30 percent parking reduction, the 101 Lytton project proposes reduced onsite parking to further enhance its TDM efforts. 8.2 Fuel-Efficient Vehicle Designations Upon completion of this project, there may be six designated low‐emitting and clean‐fuel vehicle parking spaces (five percent of total vehicle spaces). These parking spaces may require employee registration and permitting. The applicant will be responsible for construction, striping, and signage for the parking spaces. They will also be responsible for registration, permitting, and management of parking programs for tenant employees. Parking stall marking paint used for stall striping will use the following characters such that the lower edge of the last word aligns with the end of the stall striping and is visible beneath a parked vehicle: “CLEAN AIR VEHICLE”. This fuel-efficient vehicle parking measures meet the Sustainable Site LEED Credit 4.3: Alternative Transportation: Low Emitting and Fuel Efficient Vehicles. SS Credit 4.3: Low Emitting and Fuel Efficient Vehicles Intent To reduce pollution and land development impacts from automobile use Requirements Provide preferred parking1 for low-emitting and fuel-efficient vehicles2 for 5% of the total vehicle parking capacity of the site. 1 For the purposes of this credit “preferred parking” refers to the parking spots that are closest to the main entrance of the project (exclusive of spaces designated for handicapped persons) or parking passes provided at a discounted price. 2 For the purposes of this credit, low-emitting and fuel-efficient vehicles are defined as vehicles that are either classified as Zero Emission Vehicles (ZEV) by the California Air Resources Board or have achieved a minimum green score of 40 on the American Council for an Energy Efficient Economy (ACEEE) annual vehicle rating guide. 11.n Packet Pg. 469 September 12, 2011 Page | 19 As shown in Table 7, there will be a combined total of ten carpool and clean fuel parking spaced allocated according to LEED requirements. A list of eligible clean fuel vehicles is provided as an attachment. 8.3 Carpool and Vanpool Designations Upon completion and implementation of this TDM plan, and in accordance to LEED standards, there will be a minimum of four designated carpool and vanpool vehicle parking spaces (approximately three percent of total allocated parking spaces). These carpool parking spaces may require policy development, employee registration, and permitting. Registered vanpools will receive a designated parking space. The carpool parking measure meet the Sustainable Site LEED Credit 4.4: Alternative Transportation: Parking Capacity. Table 7 101 Lytton Parking Space Allocations LEED Standards (Carpool and Vanpool Parking) Carpool parking at 3% of total parking capacity 4 LEED Standards (Clean Fuel and Fuel-Efficient Parking) Clean & Fuel-Efficient parking at 5% of total parking 6 SS Credit 4.4: Alternative Transportation—Parking Capacity Intent To reduce pollution and land development impacts from automobile use Requirements • Size parking capacity to meet but not exceed the minimum local zoning requirements. • Provide preferred parking for carpools or vanpools for 3% of the total parking spaces. 11.n Packet Pg. 470 September 12, 2011 Page | 20 Figure 4 Sample Carpool Parking Permit As needed, the 101 Lytton Employee Commute Program will be responsible for monitoring the appropriate use of these designated parking spaces via registration and/or permitting. Figure 4 shows a sample 101 Lytton Carpool parking permit. 8.4 Preferential Parking Space Placement One effective means of encouraging employees to carpool and/or use a clean-fuel vehicle is to reserve the preferred parking spaces (premium, convenient locations, close to buildings, in the shade or within 100 feet of building entrances) for the exclusive use of carpool, vanpools, and clean-fuel vehicles. These preferred parking spaces will be designated with signage and pavement striping and will be located throughout the project. Preferential parking spaces are an excellent incentive that sends a clear visual message to employees and the community that alternative transportation is important. The applicant will be responsible for striping the parking space pavement and providing appropriate signage for preferential parking throughout the site. Figure 5 shows a sample carpool parking space striping designation. Figure 5 Sample Striped Carpool Parking Space 11.n Packet Pg. 471 September 12, 2011 Page | 21 8.5 Electric/Plug-in Electric Charging Stations Increased understanding of global warming issues, GHG reductions, and activities to reduce individual carbon footprints, and the recognized future availability of commercial electric and plug-in electric vehicles — inspires the applicant to promote electric and plug-in hybrid electric vehicle (PHEV ) charging outlets on the Alma Street frontage – subject to city approval. Coordination with the Bay Area Air Quality Management District (BAAQMD) and/or the Palo Alto City Utilities Department may provide grant funds for the installation of additional charging facilities. PHEV vehicles are essentially a regular hybrid with an extension cord. These vehicles operate on gas and can plug in to any 120-volt outlet. This provides a secondary fuel tank resource that is always used first -- only you fill up at home, from a regular outlet, at an equivalent cost of under $1 per gallon. 8.6 Passenger Loading Zone In order to facilitate disembarking and embarking of rideshare passengers, passenger loading/unloading areas may be provided in the garage (if space allows). The applicant would be responsible for the construction of a passenger loading zone and appropriate signage at the site. 8.7 Motorcycle and Scooter Parking Placement Designated motorcycle, electric scooter, and electric bicycle parking will be provided in a covered location. Electric scooters will be encouraged for employee consideration for their clean-fuel benefits and for their contribution to reducing vehicle congestion and parking. 11.n Packet Pg. 472 September 12, 2011 Page | 22 9.0 TRANSPORTATION AND COMMUTE INFORMATION KIOSK An information board or kiosk will be located in the building in a common gathering area (e.g., lobby employee entrance, break or lunch room). The kiosk will contain transportation information, such as transit schedules, VTA, Caltrain, and 511 ridematching. Information will be updated periodically by the project Transportation Coordinator. The applicant kiosk will be wall- mounted. Figure 6 shows a wall-mounted transportation information board. Figure 6 Sample Transportation and Commute Information Board 11.n Packet Pg. 473 September 12, 2011 Page | 23 10.0 PROJECT AMENITIES Amenities provide employees with a full-service work environment. Eliminating or reducing the need for an automobile to make midday trips increases non-drive-alone rates. Many times, employees perceive dependence upon the drive-alone mode because of errands and activities that must be carried out in different locations. By reducing this dependence through the provision of services and facilities at the work site, an increase in alternative mode usage for commute-based trips should be realized. A list of onsite amenities for the 101 Lytton project includes: Onsite Amenities • Showers and changing facilities • Abundant bicycle lockers • Available retail, beverages, snacks, and sundries • Vending food and beverages • Postage and mail outlet • Wireless Internet access • Transportation and commute kiosk Possible Tenant-Driven Amenities • Pre-tax transit option • Transit subsidies • Emergency Ride Home program • Transportation resource Web links • Mobile/delivery services - massage, haircut, salon services, etc. Nearby Amenities • Restaurants, cafes/delis, coffee • Shipping and postal services • Day care and preschool • Retail, grocery, personal services, and gifts • Fitness, entertainment and health map beauty • Banks and ATMs A more detailed list of nearby amenities and personal services within a 0.25 mile walk from the project site, along with a radius map, is provided as an attachment. 11.n Packet Pg. 474 September 12, 2011 Page | 24 11.0 INFRASTRUCTURE FOR ALTERNATIVE WORK SCHEDULES An alternative work schedule (flextime, compressed work week, or telework programs) can be beneficial in a number of ways. It can provide versatility, enabling employees to more conveniently use rideshare options and avoid traffic congestion and transit crowding. It can also be an attractive employee recruitment tool that allows employees to work around childcare or school schedules. Employees may view alternative work schedule programs as a highly desirable benefit. The following issues need to be considered for implementation of flextime work schedules: • Can heating, cooling, and ventilation systems be adjusted for longer hours? • Can security hours be adjusted? • Will parking policies need to be changed to ensure parking for all shifts? • Is building access flexible at off-peak times? To maximize alternative transportation mode-uses, the applicant will incorporate the building infrastructure necessary for employees to offer or give preference for alternative work schedules for their employees who use an alternative transportation mode. The project tenants may promote and market the available alternative work schedule programs to their employees as part of their company commute program. 11.1 Flextime Building Infrastructure In order to use alternative modes of transportation, employees may need special consideration for their work start and finish times. For example, if an employee’s workplace opens at 8:00 a.m. and the carpool drops the employee off at 7:45 a.m., he/she must wait until the building opens. Many employees may choose to drive alone given those conditions. Flextime allows the employer to adjust business open and close times to facilitate the use of alternative commute modes. A flextime program permits employees to set or modify their arrival and departure times. Flextime policies usually state that the flexibility in scheduling must not conflict with workflow. Most flextime programs establish a core period of time during which all employees must be present. Employees can then adjust their start and finish times around this period. Supervisors usually retain a significant degree of control over scheduling. The project tenants/employers may offer flextime to employees wishing to commute via alternative transportation rather than SOV. Project buildings may be open and accessible in the early morning and early evening hours to support an active flextime program. Flextime can positively influence travel behavior by allowing employees to adjust their work schedules to meet their transportation needs (i.e., to match a bus, car, or vanpool schedule). The project Transportation Coordinator will provide information to tenants regarding flextime work schedules and implementation formats. 11.n Packet Pg. 475 September 12, 2011 Page | 25 11.2 Teleworking Infrastructure The applicant will provide the infrastructure necessary to support teleworking options. Teleworking can be promoted by the project tenants/employers. If the tenant chooses to connect to the fiber optics network, the infrastructure allows multiple data transmissions. Provision of this equipment is part of ensuring that teleworkers enjoy fast, smooth data transmission between their workplace and telework office. The Transportation Coordinator will provide information to tenants regarding teleworking and implementation formats. The project tenants may offer teleworking opportunities to their employees as an alternative to commuting to the project site. 11.3 Compressed Work Week Building Infrastructure Tenants/employers may allow compressed workweek options for employees, as needed. A compressed workweek allows employees to work longer hours but shorter weeks. The shortened workweek and shifted hours may help employees avoid rush-hour traffic and reduce the number of commute days. Employees also have an additional day for leisure activities, personal business, and family time. Compressed workweek systems can include: • “9/80” schedule, in which employees work eight 9-hour days (72 hours) plus one 8-hour day, totaling 80 hours over two weeks. This program allows employees to have one day off every two weeks. • “4/10” schedule, in which employees work four 10-hour days per week. Employees typically are divided into two groups: One group works Monday through Thursday, the other group works Tuesday through Friday. • “3/36” schedule, in which employees work three 12-hour days per week. This plan allows for days off other than just Monday or Friday. Employees are divided into five groups and each group is assigned different days off. The 101 Lytton Transportation Coordinator will provide information to tenants regarding compressed work week schedule options and implementation formats. The tenants may offer this work schedule option to their employees. 11.n Packet Pg. 476 September 12, 2011 Page | 26 SECTION II – PROGRAMMATIC TDM MEASURES The following programmatic measures are designed to enhance the success of the TDM program and upon implementation; they create the “101 Lytton Employee Commute Program”. These measures are TDM components that will be required of tenants and employers as part of their occupancy agreements and represent various promotions and outreach activities of the 101 Lytton Commute Program. 12.0 TENANT SERVICES, MANAGEMENT, AND COMMUTER OUTREACH An active Transportation Coordinator, cooperative property management, and involved tenant- employers, will generate positive impacts toward the success of the TDM goals and elements that are implemented. TDM commute programs and benefits must be presented to the employees in a comprehensive and proactive manner along with other employee programs. This can be done via participation and support of employee orientation forums or transportation fairs, transportation kiosk posting, employee newsletters, management bulletins, e-mails, etc. 12.1 Tenant Performance and Lease Language – TDM Requirements The applicant will draft lease language or side agreements for all tenants that require the identification of a designated employer contact responsible for compliance and implementation of the TDM program (including annual survey and reporting and registration in the carpool parking program). The agreement language may also identify the tenant’s share of potential penalties for failure to achieve an acceptable alternative mode-use rate, failure to participate in the annual employee commute survey, or failure to submit the annual report. The building management will be responsible for project-wide tenant performance. The lease language may be worded as follows: Tenant hereby agrees to designate one of its employees to act as a liaison with Landlord to facilitate and coordinate such programs as may be required by governmental agencies to reduce the traffic generated by the 101 Lytton project as required by the City of Palo Alto as part of conditions of approval and to encourage the use of public transportation and ridesharing. 12.2 Designated Employer Contact The applicant will require a designated contact to be identified for all future tenants/occupants. The designated tenant/employer contact will be the official contact for the TDM program described in this plan. The designated employer contact will coordinate closely with the project Transportation Coordinator, maintain onsite TDM programs, and, employee education and marketing, administer the annual surveys, and provide information continuity for the building owner/landlord and the City of Palo Alto. 11.n Packet Pg. 477 September 12, 2011 Page | 27 12.3 Initial Tenant TDM Training As needed, the applicant or property management will provide 101 Lytton TDM (and commute) program training and employee commute program start-up assistance for their tenants. A TDM resource representative will provide tenant training, planning assistance, and annual monitoring and survey reporting. The overarching goals of this support function are to reduce commute trips for employees, formalize tenant commute programs, and assist with employee marketing and outreach. The TDM resource representative may assist building management in the preparation of tenant materials for new employee orientation, production of kick-off events, and coordination of carpool parties, commute e-news articles, employee assistance, and coordination of the annual transportation fair. Other employer resources and TDM training resources include: Association for Commuter Transportation (ACT)9 individual mobility management professionals and organization – ACT supports members in their efforts to reduce traffic congestion, conserve energy, and improve air quality. The applicant will join the local Northern California Chapter of ACT. U.S. EPA Best Workplaces for Commuters (BWC) 10 is an innovative membership program that provides qualified employers and project sites with national recognition and an elite designation for offering outstanding commuter benefits, such as free or low-cost bus passes, strong telework programs, carpooling matching, and vanpool subsidies. Employers that meet the National Standard of Excellence in commuter benefits—a standard created by the Center for Urban Transportation Research and the U.S. Environmental Protection Agency— will be placed on the BWC employer list. The applicant will join BWC and apply for BWC designation and also encourage tenants to join as employer BWC worksites. A summary of employer commute features that can be applied to onsite tenant programs is provided as an Appendix. 12.4 Transportation Coordinator/Commuter Assistance The applicant will provide a project Transportation Coordinator (TC) whose primary responsibility will be implementing the TDM plan. The TC may be a part-time or outsourced coordinator who manages the TDM commute program. The TC will be responsible for providing commute assistance to employees, producing onsite transportation fairs and promotional events, collaborating with 511 to maximize rideshare resources, conducting the annual survey, and producing the annual commute report. TDM industry data supports that having a Transportation Coordinator result in a very positive impact on increasing alternative mode use. 9 www.actweb.org 10 www.bestworkplaces.org 11.n Packet Pg. 478 September 12, 2011 Page | 28 This position may be filled by: Name: Elizabeth Hughes Commute Coordinator Address: 101 Lytton Avenue Palo Alto, CA 94304 Phone: (408) XXX-XXXX E-mail: commute@101Lytton.org The Transportation Coordinator will provide the following services: • Promote trip reduction and air quality strategies to employees at the project site. • Be the main point of contact for employer contacts and employees who wish to commute using an alternative. • Conduct annual employee surveys and provide reports to the City of Palo Alto, including: commute patterns, mode splits, and TDM program success (process includes annual surveying of employees, tabulation of data, and provision of results in report format). • Evaluate survey results for alternative transportation potential and/or changes to the current program. • Catalog all existing incentives that encourage employees to utilize alternative transportation programs. • Work with local agencies such as Caltrain, VTA, 511 Rideshare, and the BAAQMD. Post informational materials on transportation kiosks in employee common areas, as well as disperse alternative program information to employees via designated employer contacts, posters, fliers, banners, campus newsletter, new employee orientation, etc. • Participate in the BAAQMD Spare the Air program. Spare the Air day notices will be forwarded to employees to encourage not driving to work alone. • Coordinate and manage various aspects of the plan that require periodic updating or monitoring, such as the car and vanpool registration, parking enforcement, and locker assignment and enforcement. The applicant will provide Transportation Coordinator staffing and employee outreach and training for commute programs and management. 12.5 Employee Commuter Marketing All future employees will be provided with an employee commuter flier. This flier will include (but is not limited to) information about carpool parking, transit opportunities, bicycle routes, and onsite amenities and resources. Fliers will also be made available at the commute resources kiosks and integrated with tenant/employer information. Fliers can also be incorporated with the new employee packets. A sample flier is provided on page 29. 11.n Packet Pg. 479 September 12, 2011 Page | 29 Employee Commute Flier 11.n Packet Pg. 480 September 12, 2011 Page | 30 12.6 New Facility Kick-off Event At 75 percent occupancy of the new Palo Alto facility, the applicant will host a commute alternative kick-off event/celebration or employee marketing campaign. Transportation service providers, such as Caltrain, VTA, 511, and bicycle representatives will be invited to set up exhibit booths/tables. To encourage employee participation in the event, the applicant and tenants will provide food; (e.g., such as popcorn, ice cream, hot dogs, and/or other refreshments), and possible give-a-ways; (e.g., commuter mugs, water bottles, t-shirts, etc.). The project TC will help set the date for the event and advertise the event at least two weeks in advance. 12.7 Promotional Programs and Employee Outreach Throughout the year, the project TC will maintain employee awareness by hosting other transportation fairs. As lunch-time events, these informal fairs will highlight transit and trip- planning services, and rideshare matching, and other commute opportunities at the new site. The Transportation Fairs will bring together transit and transportation providers (Caltrain, SamTrans, and the VTA), bicycle advocates, ridematching organizations, and the 101 Lytton Employee Commute Program for a comprehensive presentation. Other events and promotions onsite may include Bike-to-Work Week, Caltrain Day, or a comprehensive Transportation/Commute Fair. During the year, various transit and rideshare organizations will be invited to set-up a marketing booth during lunchtime at a central location within the building to promote the alternative commute options available to employees. Free trial transit passes will be available for first-time riders. Periodic onsite staffed information tables will also be recommended throughout the year in concert with other employer events such as health fairs, benefits fairs, etc. Periodic rideshare articles will be written by the project TC for internal employee newsletters with ongoing highlights of alternative commuters and their successes. Internal company notices and incentive promotions should attract attention of commuters, generate excitement about the use of commute alternatives, and reward those who rideshare. These promotions are often sponsored in conjunction with the Regional Rideshare Program, or the Air District. The project TC will register with the BAAQMD for the Spare the Air program in order to receive regional air quality forecast bulletins about poor and unhealthy air quality days. These direct e- mail updates will be forwarded to all employees to encourage the use of alternative transit modes during peak advisory periods. 12.8 101 Lytton Employee Commute Web Page and Resources A 101 Lytton transportation and commute information Web page will be developed for use by all employees. A sample commute Web page is shown in Figure 7. 11.n Packet Pg. 481 September 12, 2011 Page | 31 The Web page will contain transportation information, resources, and links, including: promotions, incentives, prices, spare the air notices, transit links, 511 ridematching, and other related information. Figure 7 Sample Employee Commute Resource Page 11.n Packet Pg. 482 September 12, 2011 Page | 32 13.0 CARPOOL AND VANPOOL RIDE-MATCHING PROMOTIONS Car and vanpooling will be strongly encouraged at the project. An Employee Commuter Brochure will be designed to promote the free personalized matching assistance through the 511 Rideshare program along with other rideshare resources. This car and vanpool ride- matching service provides individuals with a computerized list of other commuters near their employment or residential ZIP code, along with the closest cross street, phone number, and hours they are available to commute to and from work. Individuals are then able to select and contact others with whom they wish to commute. They will also be given a list of existing car and vanpools in their residential area that they may be able to join should vacancies exist. 13.1 Regional 511 Ride-Matching Services The Regional 511 Rideshare Ride-match Service, commonly known as www.511.org, provides free car and vanpool matching services. The 101 Lytton Commute Program will promote the on- line 511 service to tenants and employers on a regular basis and allow 511 to solicit carpool sign-ups at onsite employer-sponsored events, such as annual transportation fairs and wellness and benefits events. Employers can also independently research employee ZIP code data from employee records and offer to match employees who live near one another. The 511 system gives commuters the information they need to make more informed choices when planning trips. By calling or logging in online, commuters can get up-to-the-minute information about traffic conditions, public transportation options, ridesharing, and bicycling anytime and anywhere throughout the greater Bay Area and Northern California. The 511 system offers one-stop shopping for traffic, transit, rideshare, and bicycle information in the region. The 101 Lytton Commute Program will be responsible for marketing the 511 Rideshare carpool program to their tenants. Figure 8 depicts the 511 Rideshare web page for carpool and vanpool matching services. 11.n Packet Pg. 483 September 12, 2011 Page | 33 Figure 8 511 Rideshare Web Page 11.n Packet Pg. 484 September 12, 2011 Page | 34 13.2 Other Ridematching Resources Below are some unique free and commercial applications created by third-party app developers. Avego: Real-time carpool matches for departures within as little as 10 minutes Carticipate: Real-time carpool matches for departures within as little as 10 minutes Goose: Trip planner that uses 511 Transit data, and includes carpools, vanpools, and shuttles 14.0 BICYCLE RESOURCES Bicycle commuters looking to find a riding partner can log on to http://bicycling.511.org/ for more information. The 511 system also provides significant resources for bicycle commuters including: ♦ Free Bike Buddy matching ♦ Bicycle maps ♦ Location of lockers ♦ How to take your bike on public transit ♦ How to take your bike across Bay Area toll bridges ♦ How to ride safely in traffic ♦ Tips on commuting ♦ Tips for bike selection ♦ Links to bicycle organizations ♦ Bike to Work Day 11.n Packet Pg. 485 September 12, 2011 Page | 35 Route #Span of Service # of Trips per Weekday Communities Served 22 VTA 7 Days/Week (3:39 am - 3:43 am)176 Palo Alto Transit Center, El Camino Real & California, El Camino Real & Showers, El Camino Real & Castro, El Camino Real & Hollenbeck, El Camino Real & Wolfe, El Camino Real & Kiely, Santa Clara Transit Center, The Alameda & Naglee, Santa Clara & 1st, Lve Santa Clara & 1st, King & Alum Rock, King & Story, and Eastridge Transit Center 35 VTA 7 Days/Week (6:44 am - 10:08 pm)60 Mountain View Station, San Antonio Transit Center, Middlefield & Charleston, Middlefield & Embarcadero, Palo Alto Transit Center, Stanford Shopping Center 522 VTA 6 Days/Week (Peak Hours Only)111 Palo Alto Transit Center, El Camino Real & California, El Camino Real & Showers, El Camino Real & Castro, El Camino Real & Hollenbeck, El Camino Real & Wolfe, El Camino Real & Kiely, Santa Clara Transit Center, The Alameda & Naglee, Santa Clara & 1st, Alum Rock & King, Alum Rock Transit Center, and Eastridge Transit Center DB AC Transit 5 Days/Week (6:41 am - 7:56 pm)31 Deer Creek Rd. at the Dept. of the Interior, Veterans Hospital, Page Mill Rd. & El Camino Real, Palo Alto Transit Center, Willow Rd. & Middlefield Rd., University Ave. & Bay Rd., Ardenwood Park & Ride, and Union City BART Caltrain Deer Creek Shuttle Weekday (Peak Hours Only)10 California Avenue, Palo Alto Station, California Avenue Station, Deer Creek, Page Mill, HP Lobby, Porter, Hillview Avenue, and Arastradero Drive Embarcadero Shuttle City of Palo Alto 5 Days/Week (Peak Hours Only)21 Palo Alto Station, Palo Alto High School, Middlefield & Embarcadero, N. California & Embarcadero, Harbor Place, Lytton Gardens, and Jordan Crosstown Shuttle City of Palo Alto 5 Days/Week (Peak Hours Only)23 Palo Alto Station, Lytton Gardens, Channing House, Main Library, Jordan, Middlefield & Colorado, JLS Mitchell Park, Stevenson House 280 SamTrans 7 Days/Week (6:06 am - 11:35 pm)38 Stanford Shopping Center, Palo Alto Caltrain Station, Channing & Harriet, Manhattan & O'Connor, Wisteria & Camelia, and Purdue & Fordham 281 SamTrans 7 Days/Week (6:16 am - 10:16 pm)60 Stanford Shopping Center, Palo Alto Caltrain Station, University & Woodland, Bay & University, Newbridge & Saratoga, and Onetta Harris Community Center 15.0 TRANSIT RESOURCES The 101 Lytton project will enjoy significant transit resources. Table 8 shows a list of available transit that will be promoted and marketed to employees. For reference, transit maps for VTA, SamTrans, and Palo Alto shuttles follow. Table 8 101 Lytton Transit Access Table 11.n Packet Pg. 486 September 12, 2011 Page | 36 Route #Span of Service # of Trips per Weekday Communities Served Medical Center (MC) Marguerite Shuttle 5 Days/Week (6:10 am - 9:33 am)9 Palo Alto Transit Center, PS5, LKSC & Via Ortega, Stanford Medical Center, 770 Welch, Hospital Fountain, and Blake Wilbur Line N/O Marguerite Shuttle 7 Days/Week (8:30 am - 1:20 pm)18 Lytton & Alma, Lytton Plaza, Campus Oval, Stanford Medical Center, Governor's Corner, Tresidder Union, Vaden & PS6, Olmsted & Hulme, Town & Country, and Palo Alto Transit Center Line P Marguerite Shuttle 5 Days/Week (6:05 am - 8:05 pm)61 Palo Alto Transit Center, Campus Oval, Stanford Medical Center, and Quarry & Vineyard Research Park (RP) Marguerite Shuttle 5 Days/Week (6:28 am - 7:58 pm)15 Palo Alto Transit Center, El Camino Real & California, Page Mill & El Camino Real, Page Mill & Hanover, 3145 Porter, Hillview & Coyote Hill, 1050/1070 Arastradero, and 3475 Deer Creek Line S Marguerite Shuttle 5 Days/Week (6:40 am - 5:52 pm)6 Stanford West Apts, Palo Alto Transit Center, Sand Hill & Oak Creek Apts, Rosewood Hotel, SLAC Hotel, and Kavli (Building 51) Shopping Express (SE) Marguerite Shuttle 7 Days/Week (PM Only)14 Palo Alto Transit Center, Quarry at Palo, Stanford Medical Center, West Residences, Tresidder Union, Vaden/PS6, Olmsted at Yale, El Camino Real & California Avenue, El Camino at Maybell, and Showers Drive at Walmart Line X Marguerite Shuttle 5 Days/Week (6:05 am - 8:59 pm)61 Palo Alto Transit Center, Quarry at Palo, Stanford Medical Center, LKSC, Panama & Via Ortega, Tresidder Student Union, Vaden & PS6, Knight Center & Schwab Center, Visitor Center, and Town & Country Line Y Marguerite Shuttle 5 Days/Week (6:05 am - 8:59 pm)62 Palo Alto Transit Center, Galvez & El Camino, Schwab Center & Knight Center, Vaden & PS6, Tresidder Student Union, Panama & Via Ortega, LKSC, Stanford Medical Center, and Quarry at Palo Caltrain 7 Days/Week (5:01 am - 12:57 am)74 Gilroy, San Martin, Morgan Hill, Blossom Hill, Capitol, Tamien, San Jose, College Park, Santa Clara, Lawrence, Sunnyvale, Mountain View, San Antonio, California Ave, Palo Alto Station, Menlo Park, Redwood City, San Carlos, Belmont, Hillsdale, Hayward Park, San Mateo, Burlingame, Millbrae, San Bruno, So. San Francisco, Bayshore, 22nd Street, and San Francisco Total Transit Trips/Weekday 850 11.n Packet Pg. 487 September 12, 2011 Page | 37 VTA Transit System Map 11.n Packet Pg. 488 September 12, 2011 Page | 38 SamTrans Transit System Map 11.n Packet Pg. 489 September 12, 2011 Page | 39 Palo Alto Shuttle Route Maps 11.n Packet Pg. 490 September 12, 2011 Page | 40 SECTION III – MONITORING AND REPORTING 16.0 MONITORING AND REPORTING The intent of the 101 Lytton TDM Plan is to reduce SOV trips, and in so doing, lessen the resulting parking issues, traffic congestion, and mobile source-related air pollution. It is important to ensure TDM measures are actually implemented and effective. Therefore, a monitoring program is necessary for each application. Because the TDM Program is performance based (i.e., a best case scenario of 30 percent alternative mode-use rate and corresponding trip reductions), annual commute program evaluation (annual employee five- day commute survey and a one-day employee commute audit) will allow the applicant and the City to assess the effectiveness of the unique program designed for their project and to make adjustments as necessary to consistently meet or exceed the goals. The applicant will establish and maintain a reduction of single use automobiles up to 30 percent which is consistent with City policies. 16.1 Notice of Implementation Within six months after occupancy of the new development, the 101 Lytton project will submit to the Director of Community Development a TDM notice that confirms the installation of facilities and amenities and implementation of commute program features and events. 16.2 Annual Five-day Employee Commute Survey A five-day commute survey will be a critical part of the monitoring process to evaluate and ensure the success of TDM measures. A report summarizing results from an employee survey distributed and collected by the TC will provide both quantitative data (e.g., mode split) and qualitative data (e.g., employee perception of the alternative transportation programs). Employees who do not participate in the commute survey will be counted as drive-alone or SOV commuters by default. This default mechanism will result in conservative results. The applicant will strongly encourage, support, and participate in the promotion and marketing of the annual employee survey. Survey data may then be used to focus TDM marketing and the efforts of the TC. The TDM program could be re-tooled, if necessary, to maintain the project’s 24 percent alterative commute node-use rates and commitment at the site. 16.3 Annual Summary Report Each year, the applicant and TC, via employee survey data, will prepare an annual TDM summary report to be submitted to the City to document the effectiveness of the TDM Plan in achieving the goal of the alternative mode-use and 20 to 24 percent trip reduction by employees. The TDM summary report will be prepared by an independent consultant, Transportation Management Association, or rideshare agency that will work in concert with the 11.n Packet Pg. 491 September 12, 2011 Page | 41 project TC. The TDM summary report will include a determination of historical employee commute methods provided by information obtained from a survey of all employees working in the buildings. If the trip reduction rates have not been achieved, the report will explain how and why the goal was not reached and specify additional measures and activities that will be implemented in the coming year to improve the modes-use rate. Table 9 Sample Commute Survey Summary The initial annual employee survey (and subsequent surveys) will be conducted in the fourth quarter of each year. Table 9 shows a sample summary matrix of an employee commute survey. 16.4 Greenhouse Gas Emissions Reduction Assessment Each year, employee commute survey data will be used to assess GHG reduction benefits generated by the 101 Lytton commute program. The annual employee alternative transportation mode-use data will be used to calculate GHG savings associated with the non- drive alone activities experienced at the project site. This GHG assessment will provide supporting information for the City of Palo Alto’s annual reporting requirement to the California Air Resources Board under SB 375 requirements. Figure 11 shows sample annual tons of GHG emissions saved per commuter. Figure 9 Sample GHG Emission Reductions (Tons) Employee Commute Mode Summary Employees Percent Carpooler (driverand/or passenger)12.00 6.67% Transit Rider 14.00 7.78% Bicycle 2.75 1.53% Walker/Pedestrian 1.80 1.00% Telecommuter 2.75 1.53% Motorcycle/moped 2.00 1.11% Electric/hybrid 3.00 1.67% Compressed work week (9/80)1.00 0.56% Vanpooler 4.00 2.22% Total 43 24.1% 11.n Packet Pg. 492 September 12, 2011 Page | 42 17.0 CONCLUSION The 101 Lytton TDM Plan was developed to meet the specific needs for the project taking into account logistical resources and opportunities of the site. From conception, the applicant was committed to an integrated mixed-use project and design. In addition to a jobs center the project includes 14 residential units and 4,155 square feet of retail use. By providing the retail and residential components it also provides great benefit to the larger community, not just to the site users. This balance of uses is a lynchpin to the TDM program and creates a unique sense of place rather than a stand alone trip generating office use. The TDM Plan provides specific elements, measures, and actions that commit the applicant to implement. The orientation of TDM features for this project will increase opportunities for pedestrian, bicycle, carpool, transit, and shuttle uses. This TDM Plan is performance based and directs the applicant and future employers to enhance incorporate programs and employee benefits and create a formal commute program. Commute program marketing, ongoing promotions, annual survey and reporting, and a transportation coordinator will provide the synergism needed to create an effective and successful program for future project employees. The language included in this TDM Plan provides very specific directions for the applicant and employers to use for implementation and development of commuter programs. It outlines the steps necessary (infrastructure, outreach, and promotions) to incorporate employee transportation benefits and programs. Annual monitoring via surveys will provide the documentation needed to demonstrate effectiveness and goal attainment and requires the applicant to identify additional TDM measures and programs they would implement if the goal was not achieved. The applicant is committed to achieving a 20 to 24 percent alternative transportation mode-use rate. This TDM Plan provides the details of the applicant’s commitment to the City of Palo Alto and designated responsibility for implementation. The 101 Lytton project supports the City of Palo Alto’s policy of focusing clustered development along major transportation corridors as well as reinforces the City of Palo Alto’s Green goals and practices. In order to be part of the transportation solution, this project contains the density and mass necessary to encourage the use of all alternative modes of transportation, including bicycling, carpooling, vanpooling, and public transit. By balancing air quality with economic growth, the 101 Lytton project will help Palo Alto thrive as a community. It is projects like these that will contribute to the City of Palo Alto’s future livelihood. 11.n Packet Pg. 493 ATTACHMENTS List of Eligible Clean Fuel Vehicles Nearby Amenities Radius Map List of Nearby Amenities (personal services, restaurants, coffee, retail/sundry, banking, etc.) San Mateo County Commuters Carpool Incentive Flier – You Pool, We Pay! Free Transit Ticket Distribution Program – Try Transit Registration 11.n Packet Pg. 494 APPENDIX A Employer Resources and Incentives 11.n Packet Pg. 495 Appendix A Page | 1 APPENDIX A – EMPLOYER RESOURCES AND INCENTIVES A description of employer incentives and resources are provided in the proceeding pages. Management Priority The support and involvement of senior management has a significant positive impact on the success of the TDM goals and elements that are implemented. Alternative mode programs must be presented to the employees in a comprehensive and proactive manner along with any other employee programs. This can be done via participation and support of employee orientation forums or transportation fairs, transportation kiosk posting, employee newsletters, management bulletins, emails, etc. From a practical standpoint management support must be twofold; 1) Upper and middle management will encourage alternative modes whenever possible. 2) Managers and supervisors need to be supportive of employees who try out alternative modes, even if it means initial minor adjustments to their work schedule. TDM should be viewed as a big picture process. This includes explaining the area's air quality problems and describing how fighting air pollution is part of being a good corporate citizen. It is important that the employees recognize the benefits on a personal and community level to see how they benefit from better air quality and less traffic congestion on the highways and the surrounding neighborhoods, less parking hassles, cost savings for employees, etc. Business Savings (Employer resource tool) Another good resource is the Business Savings Calculator provided by the Best Workplaces for Commuters, established by the U.S. Environmental Protection Agency (EPA):http://www.bestworkplaces.org/resource-center/business-savings-calculator/ The U.S. EPA developed this Web-based Calculator that enables an employer considering Best Workplaces for CommutersSM to estimate the financial, environmental, traffic-related, and other benefits of joining the program. Based on the information that employers enter into the calculator, describing how their organizations will meet the National Standard of Excellence for commuter benefits, this fast and easy-to-use tool produces the a variety of estimates including: • Employee recruiting and retention. The estimated savings from reduced employee turnover. • Employer taxes. The savings employers would realize in reduced payroll taxes if they select transit passes or vanpool benefits as a way of meeting the National Standard of Excellence. • Employee taxes. The income tax savings employees would realize if they choose transit passes or vanpool benefits as a way of meeting the National Standard of Excellence. 11.n Packet Pg. 496 Appendix A Page | 2 • Total financial benefits. The total financial savings from parking facilities, taxes, and other financial impacts. • Employee productivity and stress. The estimated improvement in employee productivity and reduction in employee stress (calculations that are based in part on a recent study in Southern California). • Safety. The decrease in fatalities, injuries, and lost work time that result when the number of vehicle trips is reduced. Then, an overview of total costs and benefits divides the impacts related to commuter programs into four sections: 1. Direct Costs and Savings: Direct costs and savings for the employer and employees include financial impacts that occur directly as a result of the commuter benefits. 2. Potential Facility Cost Savings: Potential savings include reducing parking and office space costs; these cost savings may require further action by the employer, such as renegotiating space leases. 3. Recruitment and Productivity Benefits: These business benefits can be substantial but may not appear as direct outlays or cost savings for an employer. 4. Community Benefits: Community benefits include reduced traffic, energy consumption, and emissions. Commuter Choice – Pre Tax Options As of February 2009, the Commuter Choice option increased the tax-free salary payroll deduction up to $230 per month per employee for vanpool and rail transit pass fares through a voucher program (Commuter Check). Employees can now deduct up to $2,760 a year from their salary as a pretax payroll deduction. This program encourages non-drive-alone commute trips. Employers also receive a tax savings as a benefit of this program. The applicant will encourage tenants to offer this pre-tax option to their employees who utilize other transit resources such as VTA, Caltrain, or vanpools. The law allows employers to give their workers up to $230 each month for transit or vanpool commuting costs as a tax-free benefit. It also allows employers to give employees the option to use payroll deductions to avoid paying taxes on up to $230 a month in commuting costs. Alternatively, employers can share these costs with their workers by paying part of their monthly commuting costs and allowing workers to pay the balance using pre-tax dollars. Either way, both employers and their employees save money by participating in this simple plan.11 Direct transit or commute subsidies can be a set dollar amount or a percentage of the monthly costs of transportation. Employment sites that offer transit or commute subsidies generally tend to have higher levels of alternative mode-use. Subsidies can be provided in tandem with the pre-tax option. 11 www.apta.com/research/info/online/paystoride.cfm 11.n Packet Pg. 497 Appendix A Page | 3 A $20 per month tax-free payroll deduction is now available to bicycle commuters. Bicycle commuters can deduct up to $240 per year in pre-tax bicycle expenses. This information can be found at the Internal Revenue Code Section 132 (F), as amended by TEA-21, Title IX, Section 910. Table 10 shows a sample of commuter savings available to employee transit riders. Table 10 Sample Palo Alto Employee Transit Commute Savings Emergency Ride Home Program Tenants may implement an Emergency Ride Home (ERH) program for employees who use alternative forms of transportation. Employees who commute to work using transit, bicycle, or carpool or vanpool will be guaranteed a free ride home in the case of a personal emergency, or when they unexpectedly have to work late thereby missing the last bus or their normal carpool home. The ERH program has proven very successful as it removes one of the major objections employees have to giving up their private automobile, especially those with young families. Carpool Incentive Programs12,13 12 www.commute.org 13 www.511.org 11.n Packet Pg. 498 Appendix A Page | 4 • Free Preferential Parking for Carpools and Vanpools – Parking for carpools and vanpools will be provided to commuters free of charge. • Carpool Rideshare Reward$ – Employees can participate in the 511 Rideshare Reward$ program for carpoolers. Eligible carpoolers can earn $10 in gas or Safeway gift cards for every five days carpooled, up to $100 over three months. As an added bonus, commuters who carpool 40 or more days during the program can enter a year-end drawing for $1,000 in gift cards. Rideshare Reward$ for carpoolers are available from 511 for a limited period each year (typically in spring) and are provided on a first-come, first-served basis until funds are depleted (typically in June). • Carpool (HOV) Lanes – Carpool lanes, also known as high-occupancy vehicle (HOV) lanes, can reduce your commute time. To drive in carpool lanes during your commute, you must be in a carpool, vanpool, public transit vehicle, or riding a motorcycle. Single- occupant hybrid vehicles are also permitted in carpool lanes during designated commute hours. Carpool lanes vary in their hours of operation and the minimum number of people per car. A list of HOV hours of operation and required number passengers can be found at www.rideshare.511.org. A violation of HOV lane use can result in a minimum $381 fine. During non-commute hours, carpool lanes revert to general traffic use. • Park and Ride Lots – There are 150 free park and ride lots conveniently located throughout the Bay Area, where you can meet carpool partners or your vanpool in a central location. Many lots also feature easy access to transit connections. You do not even need a car to use a park and ride lot as many lots also offer bike lockers. Park and ride Lot amenities and facilities vary, as does the availability of security. Use common sense and good judgment when choosing a lot and securing your vehicle. Vehicle safety is neither guaranteed nor implied by the 511 Regional Rideshare Program. Locations listed on this site may be operated by government agencies, private businesses or community organizations. Your are encouraged to visit the Lot before using it to review any posted information and call the lot operator for overnight/extended parking restrictions.14 • San Mateo County Commuters (Only) You Pool, We Pay! – Employees working at 101 Lytton, who live in or commute through San Mateo County, can participate in the “You Pool, We Pay!” program offered by the Peninsula Traffic Congestion Relieve Alliance (Alliance). When employees form a new carpool with two or more people over the age of 18, or add a new member to an existing carpool, all carpool participants will receive a $60 gas card incentive. A carpool incentive flier is provided as an attachment. 14 http://rideshare.511.org/511maps/PandRText.asp 11.n Packet Pg. 499 Appendix A Page | 5 Vanpool Incentive Programs • $900 New Vanpool Formation Incentive – Newly formed vanpools are eligible to receive up to $900 for starting a vanpool. Vanpooling is a less expensive, relaxing way to get to work, and the 511 Rideshare program offers the perfect incentive to start a vanpool – cash savings! The vanpool reward provides $300 to $900 in gas cards to new vans that meet all eligibility requirements and successfully complete three to nine consecutive months of operation. The gas cards are offered on a first-come, first-served basis, until the funds are exhausted. Employers and/or individuals who start a new vanpool may be eligible to receive the gas cards, which will be awarded to the party designated to handle the vanpool’s finances.15 • $300 Vanpool Seat Subsidy – The 511 Regional Rideshare Program also offers a vanpool seat subsidy in the form of gas cards. The seat subsidy will provide $100 per month, with a limit of three months per van during the program year, to help cover the fare of a lost participant. The gas cards will be offered to eligible vans on a first-come, first-served basis, until the funds are exhausted. • San Mateo County (Only) $500 New Vanpool Participant Rebates – As an incentive for vanpooling, the Alliance will pay half of the cost for the first three months of vanpooling, up to $100 per month per employee. New vanpool groups (or the driver) that stay on the road for at least six months can receive a one-time rebate of $500. This one-time incentive is provided for those who join a new vanpool in the last six months and have not vanpooled for a three-month period before joining a new van. Discounted Bridge Toll Commuters can save time and commute toll-costs by carpooling, vanpooling, or taking transit over one of the Bay Area’s eight bridges during peak commute hours. Specific Bay Area bridge toll information can be found at 511.org. Discounted tolls are only available for carpools, hybrids and hybrids with FasTrak, and when in designated carpool lane(s). Transit Planning and Resources Online transit trip planning services are a useful tool for planning public transit trips. The greater San Francisco Bay Area is currently serviced by the 511 TakeTransitSM Trip Planner. TakeTransitSM is a useful tool for planning public transit trips. The 511 TakeTransitSM Trip Planner can build an itinerary that suits the need of the transit user. An itinerary can be built that can identify the fastest commute, with the least amount of transfers or the cheapest fares. The 511 TakeTransitSM Trip Planner, by default, will generate the fastest itinerary between the origin and destination. This free service can be found online at http://tripplanner.transit.511.org. Figure 12 depicts the 511 Transit Resource Web page. 15 http://rideshare.511.org/vanpooling/vanpool_incentives.asp 11.n Packet Pg. 500 Appendix A Page | 6 Figure 12 511 Transit Resource Web Page Google has collaborated with select regional transit agencies to provide a public transit planner for riders of AC Transit and BART. This free service can be found online at www.google.com/transit. Other Transit Planners Google has collaborated with select regional transit agencies to provide a public transit planner for riders of AC Transit and BART. This free service can be found online at www.google.com/transit. Dadnab.com enables you to plan your transit trips in the Bay Area using text messaging from your mobile phone, by converting information from the 511 Transit Trip Planner to a text message. Send a text message with your origin, destination, and optional arrival or departure time, and Dadnab's reply will tell you what buses or trains to take, which locations and times, to assist you in reaching your destination. 11.n Packet Pg. 501 Appendix A Page | 7 San Mateo County Commuters (Only) Try Transit Program Commute.org offers a Try Transit Program that provides a limited number of free transit tickets to people who are interested in trying public transit to get to work. These tickets are meant for people who are new to transit. Commuters requesting tickets must work, live in, or drive through San Mateo County. A copy of the Try Transit Program is provided as an attachment. Transit ticket options include: • One BART ticket • Three round-trip Caltrain tickets • Six one-way SamTrans tickets • Six Dumbarton tickets • Three round-trip VTA tickets 511 Commuter Calculator The 511 Commute Calculator is a 511-sponsored online calculator that helps determine the hard cost of commuting by driving alone. The form asks for the number of miles traveled to work and what is paid for parking and gas, then the calculator estimates the commuting costs and vehicle CO2 emissions. This free service can be found online at http://rideshare.511.org/calculator/. This calculator may be linked with a commuter resource or HR page for employee use. 11.n Packet Pg. 502 HDR QUALIFICATIONS 11.n Packet Pg. 503 We are planners and technical experts, focused solely on development projects and improving employee mobility options while reducing traffic, GHG, and air quality impacts. We work successfully with developers, employers, and government agencies to get TSM Plans approved and projects entitled. We also implement onsite commuter programs and achieve required TSM or TDM goals. As part of HDR’s Northern California Transportation Group, our TDM practitioners provide full-service trip and traffic mitigation, sustainability planning (LEED), and air quality conformity. Serving as an extension of client staff, we provide a broad range of services to get the job done successfully while meeting the unique needs of specific jurisdictions. Transportation Demand Management (TDM) HDR specializes in developing Transportation Demand Management (TDM) and Transportation Systems Management (TSM) plans, traffic mitigation plans, and sustainable programs that create a “greener” way to address commute, mobility, and parking issues. The purpose of TDM is to promote more efficient utilization of existing transportation facilities, reduce traffic congestion and mobile source emissions, and ensure that new developments are designed in ways to maximize the potential for alternative transportation usage. TDM is a combination of services, incentives, facilities and actions that reduce single occupancy vehicle (SOV) trips to help relieve traffic congestion, parking, and air pollution problems. Our team has extensive experience in the development of mobility and transportation plans, rideshare programs, traffic mitigation measures and systems to meet local, state and federal requirements. Sustainable Air Quality, Greenhouse Gas (GHG), and Transportation Solutions HDR successfully implements of trip reduction programs, tailored to fit the project, and can typically reduce employee trips to the site by 30 percent. Trip reduction programs improve mobility resulting in reduced drive-alone trips by visitors and comply with jurisdiction requirements such as reducing project GHG impacts to net zero (mitigating all of the greenhouse gasses generated by the operation and/or construction of a project), and provide a mechanism to calculate and report results to appropriate agencies. Commute Program Implementation We have a proven track record of getting employees out of their cars. As projects are built and occupied, HDR can develop the structure, outreach and promotions necessary to implement and manage the onsite employee Commute Programs. The initial start-up and ongoing implementation of the Commute Program are designed to meet TDM or trip reduction objectives and requirements. The overarching goal of a Commute Program is to enhance the quality of life and reduce commute trips for project employees. Increases in transit usage and alternative travel choices contribute to improved regional air quality, decreased traffic congestion, reduced demand for parking, and economic advantages for employees in the form of reduced travel costs. Quality of life improvements can enhance employee recruitment, morale and retention and increases in productivity that can create positive benefits for businesses. Commute Program implementation establishes onsite policies, resources, and benefits and includes onsite transportation fairs, resource tabling, and tenant training. Annual online commute surveys provide the mechanism to assess the progress and the data necessary for the required city or county report. Collaborative efforts with local and Regional Rideshare Programs provide leveraged efficiencies. “We have finished the review of the Draft TDM. First let me say, that was the best TDM I have ever seen! The best by a large margin...a fantastic TDM Plan. Thank you so much.” Steve Lynch, AICP, Senior Planner, City of Sunnyvale, California Contact: Elizabeth L. Hughes Senior TDM/Transportation Manager HDR Engineering, Inc. 1325 J Street, Suite 1300 Sacramento, CA 95814 (916) 471-5827 Elizabeth.Hughes@hdrinc.com 11.n Packet Pg. 504 City of Palo Alto (ID # 2411) City Council Staff Report Meeting Date: 3/12/2012 Report Type: Action Items City of Palo Alto Page 1 Title: Approval of the Use of $2,275,796 of Park Development Impact Fees to Fund Park Improvements at El Camino Park in Conjunction With Utilities Department CIP WS-08002 El Camino Park Reservoir Project From: City Manager Lead Department: Community Services Recommendation Staff recommends that the Council: 1) Accept the Community Services Department (CSD) and the Parks and Recreation Commission’s recommendations for the approval of the (pre-Architectural Review Board reviewed) design for park improvements at El Camino Park, including pathways, a synthetic turf playing field, a multi-use natural turf playing field, landscaping, an expanded parking lot, a dog exercise area, and other amenities (Attachment A); and 2) Accept CSD‘s recommendation that $2,275,796 of Park Development Impact Fees (impact fees) be used to fund staff’s tentative list of improvements to El Camino Park (Attachment B); and 3) Defer the actual construction of the Council and Park and Recreation Commission’s recommended dog exercise area until an environmental assessment can be completed for Stanford University’s approval, and until funding can be identified and secured. Executive Summary Since June 2010, staff and the Parks and Recreation Commission (Commission) have discussed possible park improvements at El Camino Park that could coincide with construction of the Utilities Department’s El Camino Park Emergency Water Reservoir Project (CIP WS-08002). On June 13, 2011 (CMR # 1746), Council reviewed and approved in concept the park improvement design (as then recommended by the Commission), and instructed staff to add a dog park and additional parking to the design; and then to return to the Commission for final design approval. At their September 27, 2011 regular meeting, the Commission approved a revised design of the project that accommodated additional parking and a dog exercise area. The Commission, 12 Packet Pg. 505 City of Palo Alto Page 2 however, felt that the $2,622,010 cost estimate for the project would not leave enough in the Park Development Impact Fee account for future park needs. The current Park Development Impact Fee balance is $2,813,245. The Commission recommended that staff look to other funding sources to pay for the dog exercise area ($207,000) and the expanded parking lot ($342,260). Staff recommends that the Council approve the final proposed design and the expenditure of $2,275,796 to fund the renovation of El Camino Park including the list of improvements. Staff understands and appreciates the Commission’s concern about using a significant portion of the impact fee balance, but given the critical need for parking to accommodate anticipated increased park usage, staff has included the expanded parking lot in the recommendation for impact fee funding. Since the Commission felt that the dog park was a non-essential improvement, staff further recommends deferring this portion of the project until a future date when the impact fee balance has replenished; and a finalized design and an environmental assessment and can be funded and completed to the satisfaction of Stanford University (landowner). Staff recognizes that there are many recommendations for capital improvement funding in the Infrastructure Blue Ribbon Committee Report, and staff is hesitant to further impact the already heavily committed capital improvement budget by recommending new capital improvement projects funded by the General Fund at this time. Background The Project, which began with construction on the Utilities reservoir and ancillary buildings, has created a unique opportunity for the City to leverage time and resources to improve several areas of the popular park. Since June 2010, the Commission has discussed park design improvements at nine regular meetings and one special on-site meeting at the park. ● June 22, 2010- Utilities Department project managers presented to the Commission an update on the El Camino Park Reservoir Project. The Commission agreed with staff this was an opportunity to improve the park and significantly expand recreational and sports opportunities in the north part of Palo Alto (as recommended in the 2002 Field Report). ● June 29, 2010- A special Commission meeting was held at the park. Staff, Commissioners and members of the public brain-stormed ideas for possible improvements for the park. These ideas included synthetic turf fields, new public bathroom, improved pathways and many other creative suggestions such as an outdoor volleyball court or a BMX bike track. ● July 27, 2010- The Commission made a motion to ask staff to submit its list of improvement ideas to Siegfried Engineering Inc., the landscape architect firm designing the Project, to evaluate feasibility and possible design and construction costs. ● September 28, 2010- Many of the Commission’s suggested park improvements were included in the draft park project design. The Commission offered additional feedback on the draft design. The Commission sent a memo to the City Council 12 Packet Pg. 506 City of Palo Alto Page 3 recommending that Council find a way to fund park improvements at El Camino Park as opposed to simply rebuilding the park as it was prior to the reservoir project. ● October 26, 2010- Siegfried presented the Commission with an update on the conceptual design of the Project. The Commission provided additional input on the design. ● January 25, 2011- Siegfried presented the Commission with five refined design options with varying pathway, parking, amenity and field configurations for their consideration. The Commission asked to see a combination of three of the refined designs, and highlighted the importance of expanding public parking to accommodate the anticipated significant expansion of field and park use generated by the redesign of the park. ● February 22, 2011- Staff presented a conceptual design incorporating the Commission’s feedback, and presented two options for the use of impact fee to fund the improvements (discussed in detail below). ● On June 13, 2011, staff presented the Council with a recommendation for using impact fees to fund improvements at El Camino Park (CMR 1746; Attachment C). The Council approved the motion 8-1 (Price opposed) of using $1,420,500 of impact fees for the Commission and staff’s recommendation of improvements at El Camino Park with six amendments. The Council instructed staff to: 1. Pursue connectivity at the north (across Alma Street to the pathway) and south end of the park (past the train station) for pedestrians and bicycles. (See the bike/pedestrian page on Attachment A) 2. Return to the Parks and Recreation Commission for final design approval. (The Commission reviewed and approved the final design recommendation on September 27, 2011.) 3. Incorporate bike racks into the final design. (Fifteen bike racks have been added to the design- each rack supports two bikes) 4. Return within 90 days with an alternative to the current PF zoning that would be more restrictive or restricted to recreational uses so as to create a disincentive for other uses in the future. (Staff has confirmed that the PF zoning is the most restrictive zoning available for this property.) 5. Incorporate into the final design some type of dog exercise area and provide more details on public parking to ensure that there will be no overflow parking into the adjoining neighborhood. (A dog park and additional parking are included in the recommended design; however, staff proposes deferring the final design and construction of the dog exercise area portion until impact fee funds have replenished and an environmental assessment is completed to address Stanford University’s environmental concerns.) 6. Pursue an extended term lease with Stanford University for El Camino Park beyond the current June 2033 expiration date. (City staff is in discussion with Stanford University regarding a possible nine year extension for the lease for El Camino Park to 2042.) 12 Packet Pg. 507 City of Palo Alto Page 4 ● June 21, 2011- Staff returned to the Commission to discuss the options for dog exercise area locations as directed by Council on June 13, 2011. Staff presented the Commission with five options for possible dog exercise area locations for their consideration. The Commission voted 3:2 to recommend installing a dog exercise area in the north side of the El Camino Park between Palo Alto Avenue/Alma Street and San Francisquito Creek in an unimproved section of El Camino Park. One of the dissenting Commissioners favored a dog park at the south end of the park; the other dissenting Commissioner preferred creating a shared ball field and dog exercise area rather than a new area in the north part of the park. ● July 26, 2011- Staff returned to the Commission to discuss the options for additional parking as directed by the Council on June 13, 2011. Staff presented five options for their consideration. The Commission concurred with staff and chose to recommend Option E, which added an additional 29 parking spaces (for a total of 71 spaces). During the review the Commission highlighted the need to include improvements for a convenient passenger loading/unloading area into the parking lot design. (After adding the loading and unloading area to the final parking lot design, there are an additional 26 parking spaces, for a total of 68 spaces.) ● September 27, 2011- Staff returned to the Commission to seek their recommendation to the Council for the final design (as directed by the Council on June 13, 2011). The Commission stated that they support the revised design; however, they felt funding for the dog exercise area ($207,000 plus contingency) and the expanded parking lot ($450,000 plus contingency) should come from some source other than Park Development Impact fees. The Commission agreed that expanding the parking lot at El Camino Park is critically important. They also noted that the dog exercise area is a nice, but non-essential feature at this time. The cost of the final design including the dog exercise area and the expanded parking lot is $2,503,496. The cost of the final design without the dog exercise area and expanded parking lot would be $1,899,310. If the dog exercise area and the expanded parking lot were funded by other means, the impact fee balance would be $913,935. (Sept. 27, 2011 Staff Report Attachment D) Throughout these meetings the Commission raised questions and made comments about pedestrian/bike access to the park, the replacement restroom location (specifically related to safety and access), tree protection efforts, maximizing parking spaces to accommodate the expansion of field and recreational use, fencing possibilities for a joint-use dog exercise area, and lighting improvements. In addition to the Commission’s guidance on design features, Recreation staff has collected insight from various field user groups (during the annual field booking process) regarding preferred field design features such as synthetic turf, field size, and multi-use designs to accommodate growing interest in sports such as lacrosse. This input provided direction for the current design of park improvements. Discussion 12 Packet Pg. 508 City of Palo Alto Page 5 Siegfried Engineering Inc. designers incorporated the Council, the Commission, and staff’s recommendations regarding site features to create a final site design for improvements at El Camino Park (Attachment A). The design includes a synthetic turf soccer/lacrosse field on the north-end of the park, and a natural turf softball/multi-use field on the south-end near the transit station. The recommended design includes an expanded parking lot that adds 26 parking spaces and a new loading/unloading area to the existing parking lot (total of 68 spaces), and a future dog exercise area. Dog Exercise Area The dog exercise area design allows for a fenced dog exercise area located in the undeveloped north side of El Camino Park next to San Francisquito Creek. There is an existing light pole in the area that would provide use of the dog exercise area in the evening. The approximately .5 acre (about the size of half a football field) dog run would have a wood chip base, benches, and a water fountain for humans and a special spigot for dogs. Stanford University requires certain mitigations to ensure that the dog exercise area will not contaminate San Francisquito Creek and trout habitat. The City would need to hire a consultant to help ensure the dog exercise area design avoids runoff into the creek and mitigates other potential environmental impacts. Although the use of the northern most portion of El Camino Park appears to be an appropriate location for a dog exercise area that can serve the needs of residents of North Palo Alto, because of its proximity to protected riparian habitat, the need to mitigate any possible impacts to the creek, and serious funding limitations, staff does not recommend final design and construction of the dog exercise area at this time. The Commission noted that they are in full support of dog exercise areas in Palo Alto. However, they argued that it would be better to save the balance of impact fee money for future City- wide park needs, rather than to spend the impact fee money on a dog exercise area at El Camino Park at this time. Staff considered the possibility of funding the dog exercise area through other means, including General Fund Capital Improvement Project (CIP) funds. However, the funding for CIP projects is extremely limited, and populated with higher priority needs such as replacing the restroom at El Camino Park. Once funds are available and a final El Camino Park dog exercise area design is created and approved by Stanford University, staff will ensure that its final design compliments the other dog exercise areas in Palo Alto at Hoover, Greer, and Mitchell Parks. If the Council opted to go beyond staff’s recommendation and fund the dog exercise area with impact fees, the cost of the dog park would be $207,000 (plus contingency), which would make the total cost for all the improvements to El Camino Park $2,503,496. This would leave a balance in the impact fees of only $309,749. 12 Packet Pg. 509 City of Palo Alto Page 6 El Camino Park Restrooms The existing cinder-block restroom building at El Camino Park was built in 1940. The restroom is in very poor condition. Access for handicapped patrons is limited and fixtures are outdated. The restroom must be removed to accommodate the expanded parking lot and the synthetic turf field at the north end of the park. The design illustrates the new location of the restroom, which will be located towards the end of the parking lot between the two fields. The new restroom will cost approximately $300,000. A new restroom cannot be funded with impact fees, because impact fees cannot be used to replace or repair existing infrastructure. Staff has submitted a separate CIP funding request for a new restroom at El Camino Park for fiscal year 2013, which would allow for the restroom to be built at the same time as the other El Camino Park improvements. In addition to this centrally-located restroom, there is also a JC Decaux automated public toilet (accommodates only one person at a time) located in the undeveloped, southern most portion of the park near the Red Cross parking lot. Other Design Elements The final design also includes a new decomposed granite (DG) exercise pathway with security lighting, mulch for the non-turf areas, soccer catchment fencing, four picnic tables, a maintenance equipment storage shed, and electric conduit and footings, which will allow for adding soccer field lighting at a future time without the need to renovate the synthetic turf. Fifteen bike racks have also been added to the design (each rack supports two bikes). Tree Impacts The current park design requires the removal of two sweetgum (Liquidambar styraciflua) trees (size of the two trees: 17.4’’ and 20.4’’ diameter at chest height (dbh)) for the project, and the removal of one old Monterey Pine tree for safety reasons. The project also requires relocating two small coastal redwood trees (size of trees 2.2’’ and 2.3’’ dbh) in the park. Thirty-six new trees will be planted in the park as part of the recommended design. Trail Connectivity Staff is pursuing trail connectivity at the north end of the park (across Palo Alto Avenue to the existing multi-use pathway) and south end of the park (past the train station) for pedestrians and bicycles. Planning & Transportation and Parks staff will hire a contractor to perform a traffic safety study to confirm the best route for the connectivity at the north end of the park and the exact position of a safe crosswalk on Alma Street. Staff is also working with Stanford University and MacArthur Park to improve the pedestrian and bicycle connectivity at the south end of the park. Staff is requesting that a concrete sidewalk be installed to allow for pedestrians and bicyclists to continue from the corner of University Ave at El Camino Real across the front of the MacArthur Park Restaurant past the top of Circle Drive and connect to the existing Class I 12 Packet Pg. 510 City of Palo Alto Page 7 multi-use trail that runs past the Palo Alto Medical Foundation and Palo Alto High School. (See Page 6 of Attachment A for a map illustrating trail connectivity.) Zoning Options The Council directed staff to return with an alternative to the current PF (Public Facility) zoning designation that would be “more restrictive” or restricted to recreational uses so as to create a disincentive for other uses in the future. According to Curtis Williams, Director of Planning, the PF zoning is the most restrictive zoning possible for the El Camino Park property. The PF zoning designation does not allow for residential development. Cost Increases The Council’s request (June 13, 2011) to include significantly expanded parking ($342,260) and a dog run ($207,000) added significant costs to the project. Design, engineering services and construction management is estimated to be at least $400,000. The significant increase is because of field and parking lot grading issues, tree conservation efforts, and lack of City staff to assume construction management and engineering services duties as previously projected. A 10% contingency for the park improvements ($206,891) was also not included in the cost estimate in previous staff reports, but has now been added. There were also previously undisclosed costs from the landscape architect for restoration planting of perimeter trees, reseeding some turf areas and irrigating the natural grass area north of the synthetic turf ($89,000). Stanford University Lease for El Camino Park Part of the approved June 13, 2011 Council motion was a directive for staff to pursue an extended term lease with Stanford University for El Camino Park beyond the current June 2033 expiration date. Palo Alto Utilities Department had previously secured permanent easements for areas of the park where the reservoir and pump station are located in order to protect the sizeable investment in the infrastructure. Given the large investment the City is making in developing and enhancing other parts of the park, the Council expressed its desire to pursue options for extending the City’s lease for El Camino Park. A request was submitted by the Real Estate Division’s staff to Stanford University to consider the extension of the lease. The City Attorney’s Office and the City Manager’s Office are in discussion with Stanford University regarding Stanford’s Campus Energy System Improvement Project which would replace the existing campus heating and cooling co-generation plant with a state of the art and energy efficient facility. Certain portions of the development are subject to 12 Packet Pg. 511 City of Palo Alto Page 8 the City’s approval under the Sand Hill Development Agreement. Stanford’s new energy facility, located on the academic campus and in Santa Clara County’s jurisdiction, is restricted by the development by the Development Agreement for nine years. Stanford University has proposed extending the El Camino Park lease by nine years commensurate with their request to allow early development of the energy facility. Should the Council amend the Development Agreement, the El Camino Park lease would then expire June 2042. This matter will be brought to Council for consideration in the near future. Other Park Projects Fundable by Impact Fees Staff has identified several other park projects that meet the impact fee funding requirements. These projects include: 1. Phase II Byxbee Park. The Baylands Master Plan states that park development of Phase II at Byxbee Park Hills would cost as much as $2,067,700 (in 1989 dollars) if all aspects of the conceptual plan were implemented. This cost estimate was done in 1989 and was based on a conceptual plan. Given the age and conceptual nature of the plan, staff recommends re-examining and updating the plan. For example, the 1989 conceptual plan envisioned the construction of an additional parking lot, the creation of a paved astronomical viewing platform, and the use of expensive construction elements that staff feel need to be reevaluated and prioritized based on current park user needs. CSD staff is currently working with Public Works staff to construct the access path/trail system for Phase II. The alignment of the shared access path/trail system is very similar to the layout of the 1991 Hargreaves Phase II trail plan. 2. Cubberley Snack Shack/Restroom. This project is projected to cost $220,000. Because the lease for Cubberley expires in 2014, staff recommends deferring this project until a new lease that will ensure that community access is in place. 3. Cubberley Tennis Court Lighting. This project is projected to cost $130,000. Because the lease for Cubberley expires in 2014, staff recommends deferring this project until a new lease that ensures community access is in place. Staff suggests that these projects, and any additional park projects that could be funded by impact fees, should be discussed at a future Park and Recreation Commission meeting where the Commission could review the Infrastructure Blue Ribbon Commission’s recommendations and findings, and then consider creating a revised top ten list of projects to be funded by impact fees that could be brought to Council for review. Park Project Timeline ● September 2011 Begin Phase 1 Construction (reservoir, pump station, etc.) 12 Packet Pg. 512 City of Palo Alto Page 9 ● May 2012 Architectural Review Board Review Phase 2 Park improvements ● January 2013 Complete Phase 1 (reservoir, pump station, etc.) ● June 2013 Begin Phase 2 (park improvement construction) ● March 2014 Complete Phase 2 (park re-opens to the public) Resource Impact The El Camino Park Improvement Project would utilize $2,275,796 of the total $2,813,245 in the park impact fee account. This would leave a balance of $537,449 for future projects at this time. At the June 13 2011, City Council meeting, staff anticipated having a balance of $1,379,500 in the impact fee account. However, the additional Council directed park features (expanded parking lot and dog run) and design, engineering and construction services, and other unanticipated costs have significantly increased the cost of the project. Park Development Impact Fees The Nexus report projected $1.3 million annual revenue from the Park Development Impact Fees (based on ABAG forecasts of population and employment). Actual Impact fees collected since 2006: FY 2006 $470,000 FY 2007 $1,041,000 FY 2008 $1,316,000 FY 2009 $218,000 FY 2010 $352,000 FY 2011 $151,203 FY 2012 (to Dec.) $173,483 Maintenance Costs Associated with Park Improvements Converting the north natural turf field (1.5 acres) to synethic turf will reduce water, fertilizer, seed, rodent control, and mowing expenses at El Camino Park by approximately $43,131 per year. The synthetic turf will require approximately $3,447 in annual maintenance costs. The increase in maintenance cost due to the new dog exercise area, trails, picnic tables, and 12 Packet Pg. 513 City of Palo Alto Page 10 increase in associated trash and litter would be approximately $6,530 per year. The overall net decrease in annual operating costs associated with the improvements in the park would be approximately $33,154. Utilities Department Contribution The Utilities Department’s water bond funds will contribute approximately $1,641,790 towards the basic cost of the park reconstruction. This contribution is what the Utilities Department would have paid to restore the park to its original condition after the impacts from the reservoir project. The $1,641,790 has already been factored into the calculation of the funds needed for the park improvements. The $2,275,796 from impact fees, combined with the contribution from Utilities, is necessary to fund the additional park improvements (excluding the dog park). Limited General Funds to pay for El Camino Park Improvements The Administrative Services staff advise that unless all available impact fees are used to fund this project, or some of the park improvement features are removed or deferred, the project will place significant pressure on available General Funds for infrastructure rehabilitation. Furthermore, it should be noted that this project’s improvements have not been included in the Infrastructure Blue Ribbon Committee (IBRC) report so it can be placed in context of overall General Fund infrastructure needs. This information about the limited General Funds influenced CSD staff’s recommendation to fund the expanded parking lot with impact fees and to defer the dog exercise area until more funding is available. Policy Implications The proposed park improvements are consistent with Policy C-26 of the Community Services element of the Comprehensive Plan that encourages maintaining park facilities as safe and healthy community assets; and Policy C-22 that encourages new community facilities to have flexible functions to ensure adaptability to the changing needs of the community. The proposed project is consistent with the goals of the 2002 Athletic Fields Report. This project is also consistent with Parks and Recreation Commission policy that staff carefully consider the construction of dog exercise facilities for large neighborhood or regional parks when designing park improvements. Environmental Review The Utilities Department’s El Camino Park Reservoir Project is subject to environmental review under provisions of the California Environmental Quality Act (CEQA). An EIR has been completed for this project in accordance with the CEQA requirements. An addendum to the EIR will be prepared to incorporate the additional park improvements called out in Attachment B. 12 Packet Pg. 514 City of Palo Alto Page 11 A separate study would need to be commissioned for the review of the future dog exercise area to ensure that the design specifically addresses the concern of Stanford University. Attachments: • Attachment12.a: ATTACHMENT A -El Camino Park Final Design • Attachment12.b: ATTACHMENT C - June 13, 2011 CMR El Camino Park Improvement Project • Attachment12.c: ATTACHMENT D - Sept 27, 2011 Parks and Recreation Commission Staff Report El Camino Park • Attachment12.d: ATTACHMENT B- Park Improvements Funded By Park Development Impact Fees 12 Packet Pg. 515 12.a Packet Pg. 516 12.a Packet Pg. 517 12.a Packet Pg. 518 12.a Packet Pg. 519 12.a Packet Pg. 520 12.a Packet Pg. 521 City of Palo Alto (ID # 1746) City Council Staff Report Report Type: Action ItemsMeeting Date: 6/13/2011 June 13, 2011 Page 1 of 11 (ID # 1746) Summary Title: El Camino Park Title: Approval of Park Development Impact Fees to Fund Park Improvements at El Camino Park in Conjunction With Utilities Department CIP WS-08002 El Camino Park Resevoir Project From:City Manager Lead Department: Community Services Recommendation Staff recommends that the Council: 1.Approve the Parks and Recreation Commission and staff’s suggested use of $1,420,500 of Park Development Impact Fees (impact fees) to fund the Parks and Recreation Commission’s recommended list of improvements to El Camino Park (Attachment A); and 2.Direct staff to pursue a long-term lease with Stanford for EL Camino Park beyond the current June 2033 expiration date. Executive Summary Since June 2010, staff and the Parks and Recreation Commission (Commission) have discussed possible park improvements at El Camino Park that could coincide with construction of the Utilities Department’s El Camino Park Reservoir Project (CIP WS-08002) (Project). With the Commission’s guidance, staff created a list of improvements (e.g., synthetic turf soccer/lacrosse field, expanded parking, and new pathways) that can be funded by impact fees. Staff is recommending that Council approve the use of impact fees to fund the list of improvements at El Camino Park. Background The Project, which is currently in its final stage of design for the reservoir and ancillary buildings, has created a unique opportunity for the City to leverage time and resources to improve several areas of the popular park. Since June 2010, the 12.b Packet Pg. 522 June 13, 2011 Page 2 of 11 (ID # 1746) Commission has discussed park design improvements at six regular meetings and one special on-site meeting at the park. •June 22, 2010-The Utilities Department presented to the Commission an update on the El Camino Park Reservoir Project. The Commission decided this was an opportunity to improve the park. •June 29, 2010-A special Commission meeting was held at the park. Staff, Commissioners, and members of the public brain-stormed ideas for possible improvements for the park which included synthetic turf fields, new public bathroom, improved pathways among many other creative ideas such as an outdoor volleyball court or BMX track. •July 27, 2010-The Commission made a motion to have its list of improvement ideas forwarded to Siegfried Engineering Inc., the landscape architect firm designing the Project, to evaluate feasibility and possible costs. •September 28, 2010-Many of the Commission’s suggested park improvements were included in the draft park project design. The Commission decided to move forward with making a recommendation to Council. •October 26, 2010-Siegfried presented the Commission with an update on the design of the Project. The Commission provided additional input on the design. •January 25, 2011-Siegfried presented the Commission with five design options for their consideration. The Commission asked to see a combination of three of the designs, and highlighted the importance of expanding public parking to accommodate expanded field use. •February 22, 2011-Staff presented a conceptual design incorporating the Commission’s feedback, and presented two options for the use of impact fee to fund the improvements (discussed below). Throughout these meetings the Commission raised questions and made comments about pedestrian/bike access to the park, restroom location (specifically related to safety and access), tree protection efforts, maximizing parking spaces, fencing possibilities for joint dog exercise area, and lighting improvements. In addition to the Commission’s guidance on design features, Recreation staff has collected insight from various field user groups regarding preferred field design features such as synthetic turf, field size, and multi-use designs to accommodate growing sports such as lacrosse. This input provided direction for the current conceptual design of park improvements. 12.b Packet Pg. 523 June 13, 2011 Page 3 of 11 (ID # 1746) The Commission believes improvements to current fields and the addition of new multi-use sports facilities will attract downtown residents to the park and make it a vibrant part of the City’s park system. Renovations to the park would increase usability of current park assets, meet some well-understood recreational needs in our community, and make effective use of space within the park that is currently undeveloped. The Commission has urged the Council (October 20, 2010, memorandum, Attachment B) to seek or provide supplemental funding to make park improvements at the park in conjunction with the Utilities reservoir project. Regarding funding alternatives, the Utilities Department is limited by the terms of Proposition 218, in that the City's Water Fund may pay only for the water project and in-kind replacement of the park and related park amenities directly impacted by the Project, and not other new park improvements or enhancements. In appreciation of the funding limitations, staff and the Commission recommend using impact fees to augment the Utilities Department’s in-kind park replacement. Park Development Impact Fees On March 25, 2002, the Council adopted Ordinance 4742, creating Chapter 16.48 of the PAMC, to establish development impact fees for parks, community centers, and libraries. The impact fees are legally required to be expended to augment recreational opportunities through the improvement of parks in order to compensate for increased demand for City facilities and services brought about by new residential and commercial development and the associated increase in population. In order to validly impose fees on new development, the City had to establish a “nexus” between the development and the public facilities or services that would be funded by the fee, and the City also had to establish a connection between the development and the amount of the fee that is being imposed on the development. The City retained the services of DMG-MAXIMUS (DMG) to create a “nexus” report (Parks and Community Facilities Impact Fee Study, September 2001) to provide the legal framework for the imposition of development fees. According to the report, impact fees for parks are intended to cover the cost of land acquisition and park improvements for neighborhood and district parks. The report goes on 12.b Packet Pg. 524 June 13, 2011 Page 4 of 11 (ID # 1746) to say, “Because of the difficulty of acquiring desirable park sites in Palo Alto, the City may choose to expend impact fee revenue for improvements that enhance the capacity of existing parks to serve additional demand, rather than to acquire more land.” Impact fees cannot be used for maintenance or operating costs, and should be used on capital projects that significantly enhance capacity. After the Council established the development impact fee ordinance in 2002, staff worked with community groups, recreation clubs, and the Parks and Recreation Commission to study strategies for enhancing park and recreational facilities throughout the City in order to mitigate for increased usage caused by new development. A Commission-recommended prioritized list of ten park improvement projects (Top Ten List, Attachment C) to be funded by impact fees was approved by the Council on March 12, 2007 (CMR:168:07). This list includes adding restrooms to parks with large sports fields, replacing natural turf with synthetic turf on four popular sport fields to expand play capacity, adding lights for tennis court and field facilities to expand play capacity into the evening, and the addition of a children’s playground at Heritage Park. The Commission’s Recommendation for Impact Fee Use at El Camino Park On February 22, 2011, staff presented the Commission with two possible options for using impact fees to fund improvements at El Camino Park (Attachment D). Staff provided context for the recommended options by explaining the various sources of funding for capital improvement projects (CIPs) in parks: the general fund infrastructure reserve, grants, donations, and impact fees. The Commission and staff carefully reviewed and analyzed the incomplete projects on the Top Ten List, as well as other park projects that could potentially be funded by Park Impact Fees. The Commission thoughtfully debated the two options for impact fee use at El Camino Park. Staff recommended “Option A,” which included the following features: a synthetic turf north soccer/lacrosse playing field; a synthetic turf south softball/multi use playing field; a new storage building for maintenance equipment; expanded parking lot; lighting conduit for future lighting of north field; mulch for non turf areas; soccer catchment fencing; and funding for limited tree removal and design fees. This option would have used $2,360,500 of the current impact fee balance of $2.8 million. 12.b Packet Pg. 525 June 13, 2011 Page 5 of 11 (ID # 1746) The Commission voted 4-2 to instead recommend “Option B” (Minutes for Commission Meeting, Attachment E), which included a synthetic turf north soccer/lacrosse playing field; a natural turf south softball/multi use playing field; a new storage building for maintenance equipment; expanded parking lot; lighting conduit for future lighting of north field; mulch for non turf areas; soccer catchment fencing; and funding for limited tree removal and design fees.; as well as a new decomposed granite pathway with lighting, and four picnic tables. Option B will use $1,420,500 of the current impact fee balance. The difference between the two options is that Option B is $940,000 less expensive than Option A; includes only one synthetic turf field instead of the two proposed in Option A; and includes a decomposed granite path with lighting and four picnic tables that were not included in Option A. The Commission expressed the importance of retaining funding in the impact fee account for future projects and possible land acquisition. The Commission pointed out that having two artificial turf fields would likely draw high numbers of field users to the park. They also noted that even with the additional 13 parking stalls that will be added from expanding the parking lot, there would likely be insufficient parking to accommodate the high volume of field users from two multi-use synthetic turf fields. The current field use levels often exceed the capacity of the existing parking lot. Staff had initially thought the close proximity to public transit and the parking lot at the Stanford Shopping Center across El Camino Real from the park would provide alternatives for park users to get to the park. Several Commissioners pointed out that in their experience field users typically do not use public transit to get to playing fields, and would be unlikely to park far from the fields. The Commissioners also highlighted the high replacement costs and relative short life spans of the synthetic turf fields (synthetic turf has a typical life span of eight to ten years, and cost approximately $550,000 to replace). Some Commission members felt that the City could add synthetic turf to the south field at a future date if it is deemed prudent; while two Commissioners felt there would be a cost savings from installing a south synthetic turf as part of this project. After lengthy discussion, staff agreed with the 4-2 Commission vote that Option B represents the best use of impact fees at El Camino Park. The majority of Commissioners supported Option B because they felt that even with additional parking spaces created by the new design the park would create too much user demand if there were two synthetic turf fields at this 12.b Packet Pg. 526 June 13, 2011 Page 6 of 11 (ID # 1746) one facility. Two Commissioners voted against the motion because they felt that Option B only provided for the conversion of one field (the soccer field) to synthetic turf. They expressed their concern that because of the demonstrated need for more playing fields in Palo Alto. The two Commissioners were, however, in favor of all other aspects of the conceptual design of Option B, including picnic areas, parking, and pathways. Archtectural Review Board (ARB) Study Session On May 5, 2011, Siegfried presented the proposed improvements to the ARB for a study session. The Board stated that they appreciated the decomposed pathways and the tree preservation efforts. They were pleased with the clustering of restroom, scorekeepers booth, and storage facility; and liked that the design of these structures match the design of the proposed Utilities pump station building. The Board suggested joining the storage building and scorekeepers building into one structure. They also asked staff to return with a species list for the trees to be planted, and a sample of the proposed rubber mulch. The Board commented that they would like to see the bike path connect with Alma Street. Staff explained that this is a future design element, however it is currently unfunded and requires additional study. Staff will return to seek final ARB approval in July or August. Discussion Conceptual Site Design and Staff’s Recommendation for Remaining Impact Fee Use ($1,420,500) at El Camino Park Siegfried incorporated the Commission’s and staff’s recommendations regarding site features to create a conceptual site design (Attachment F). The design includes a synthetic turf soccer/lacrosse field on the north-end of the park, and a natural turf softball/multi-use field on the south-end near the transit station. The benefits of this option are increased capacity for the park to accommodate field users, increased revenue from field brokering fees, and an improved and safer playing surface. The 2002 Parks and Recreation Commission report “Got Space”, identified field space as one of the most critical recreation needs of our community. The report suggested that Palo Alto would benefit from having a synthetic playing field in the north, south, east, and west regions of the City. The City has synthetic playing fields in the south and west (Cubberley Community Center and Stanford/Palo Alto Playing Fields). A synthetic field at El Camino Park would provide a field for the northern region of Palo Alto. At some point in the 12.b Packet Pg. 527 June 13, 2011 Page 7 of 11 (ID # 1746) future, a synthetic turf field can be added to Greer Park, which serves the eastern region of the City. The recommended design also includes an expanded parking lot (13 additional parking stalls), a new decomposed granite exercise pathway with security lighting, mulch for the non-turf areas, soccer catchment fencing, four picnic tables, a maintenance equipment storage shed, and electric conduit and footings, which will allow for adding soccer field lighting at a future time without damaging the artificial turf. It should be noted that future lighting for the soccer field has not yet been thoroughly vetted with the community or residents who might be affected by the lights. Attachment A lists the features that would be funded by impact fees and their associated costs. Many of the Commission’s and staff’s Park improvement wish-list items (new restrooms, score keeper building, dog run, and replacement of existing asphalt pathways) do not meet the “increase park capacity” requirement for legal use of impact fee funds. Staff will continue to research funding sources for these park improvements including future capital improvement projects with an attempt to have the additional projects completed while the park is under renovation. Dog Run The Commission requested that Siegfried look at opportunities to incorporate an off-leash dog exercise area into the park design. Siegfried’s design allows for a fenced dog run located just north of the north-end playing field. The decomposed granite path has been configured in such a way that a dog run could conceptually be placed inside the pathway loop. A fenced dog run would require more maintenance than the proposed passive recreation multi-use lawn area, which would serve as an area where people could recreate near the surrounding picnic tables. The size for the dog run would be approximately .5 acres. Though the City has small dog runs at Greer Park and Hoover Park that are less than .5 acres. A study on off-leash dog exercise areas by the School of Veterinary Medicine at UC Davis finds a correlation between the size of the dog run and its success, with larger dog runs being ranked as more successful. The City of Boulder Colorado has a minimum size of 1 acre for fenced dog runs. 12.b Packet Pg. 528 June 13, 2011 Page 8 of 11 (ID # 1746) Given the size limitations and increased maintenance costs associated with dog runs, staff does not recommend an exclusive-use dog exercise area in this location. El Camino Park Lease Owned by Stanford University, El Camino Park is under long-term lease to the City of Palo Alto. On January 12, 2009 Council approved the recommendations in CMR 104:09 to sign an agreement with Stanford University on the terms and conditions for the easement rights to place the reservoir in the park. Five permanent easements were established to permit the construction, maintenance and operation of the reservoir, pump station, well and water supply pipelines. These easements are permanent and will only terminate upon the abandonment or non-use of the facilities for a period of two consecutive years. The north section of the park, where the synthetic turf is proposed, does not have a permanent easement. It is under lease through June 2033. Due to the significant investment the City of Palo Alto may make in improving El Camino Park, the Parks and Recreation Commission made a motion that was unanimously approved at their April 26, 2011 meeting to request that Council pursue a long-term lease with Stanford for El Camino Park beyond the June 2033 expiration date. Tree Protection Efforts An Arborist’s Pre-construction Tree Protection Report was performed Ray Morneau in 2008 for this project. Early in the design process, Siegfried estimated that 16 trees would be removed for the reservoir project. The City Planning Arborist, Dave Dockter, worked with Siegfried, Parks, and Utilities staff to devise options for preserving additional trees. The current proposed park design requires the removal of two sweetgum trees (size of the two trees: 17.4’’ and 20.4’’ diameter at breast height -dbh) for the project, and the removal of one Monterey Pine tree for health and safety reasons. The project also requires relocating two small coastal redwood trees (size of trees 2.2’’ and 2.3’’ dbh) in the park. Thirty- six new trees will be planted in the park as part of the conceptual design. The cost for the tree removals and relocations is estimated to be approximately $2,500. Olympic Grove The southwestern border of the park is occupied by four trees planted in the 1980s in honor Palo Alto Olympic medalists. The four Coast Redwoods were 12.b Packet Pg. 529 June 13, 2011 Page 9 of 11 (ID # 1746) planted to honor their notable achievements. As part of the proposed project, an honorary plaque will be installed to commemorate the Olympic Redwood Grove. Future park projects that could utilize impact fee money Staff has identified several other projects at other City parks that meet the impact fee funding requirements of significantly expanding user capacity. After funding the suggested improvements for El Camino Park, the remaining impact fee balance would be $1,379,500. These potential impact fee-funded projects might include: 1.Magical Bridge (universal access) Playground at Mitchell Park. This project is projected to cost approximately $1.6 million. The City will allocate the land necessary for the playground and $300,000 (recommended in the 2012 Capital Budget recommendation) for the project. The remainder of the funding is expected to come entirely from fundraising and grants from the Friends of the Magical Bridge Playground. 2.Phase II Byxbee Park Trails (once the landfill is closed and capped in 2012). There has been no formal cost analysis for trail design and construction, though staff estimates that a simplified version of the Hargreave’s 1991 Byxbee Park Plan trail design (listed in the Baylands Master Plan) would cost approximately $275,000 for trail developments, signage and visitor amenities. 3.Cubberley Snack Shack/Restroom. This project is projected to cost $220,000. However, because the lease for Cubberley expires in 2014, staff recommends deferring a decision on this project until a new lease that ensures long-term community access is in place. 4.Cubberley Tennis Court Lighting. This project is projected to cost $130,000. However, because the lease for Cubberley expires in 2014, staff recommends deferring a decision on this project until a new lease that ensures long-term community access is in place. 12.b Packet Pg. 530 June 13, 2011 Page 10 of 11 (ID # 1746) Staff suggests that these projects, and any additional park projects that could be funded by impact fees, should be further discussed at a future Commission meeting where the Commission will consider creating an updated Top Ten list of projects to be funded by impact fees that will be brought to Council for review and adoption. Park Project Timeline •May 5, 2011 Architectural Review Board Study Session •November 2012 Complete Phase 1 (e.g., reservoir and pump station) •November 2012 Begin Phase 2 Construction (e.g., park restoration, synthetic and natural turf, and pathways) •May 2013 Complete Phase 2. Park re-opens to the public Resource Impact The El Camino Park Improvement Project, as recommended to Council by staff and the Parks and Recreation Commission, would utilize $1,420,500 million of the total $2.8 million in the impact fee account. This would leave a balance of $1.435 million for future projects. The Nexus report had projected $1.3 million annual revenue from the Park Impact Fees (based on ABAG forecasts of population and employment). Below are the actual impact fees collected since 2006: FY 2006 $470,000 FY 2007 $1,041,000 FY 2008 $1,316,000 FY 2009 $218,000 FY 2010 $352,000 FY 2011 thru Jan’11 $112,000 Policy Implications The proposed park improvements are consistent with Policy C-26 of the Community Services element of the Comprehensive Plan that encourages maintaining park facilities as safe and healthy community assets; and Policy C-22 that encourages new community facilities to have flexible functions to ensure adaptability to the changing needs of the community. 12.b Packet Pg. 531 June 13, 2011 Page 11 of 11 (ID # 1746) The proposed project is consistent with the Park and Recreation Commission’s review of the design of the project and is consistent with the goals of the 2002 Athletic Fields Report. Environmental Review This project is subject to environmental review under provisions of the California Environmental Quality Act (CEQA). An Initial Study has been completed and a Draft Mitigated Negative Declaration has been prepared for this project in accordance with the CEQA requirements. Attachments: ·Attachement A -Impact Fee Improvements (PDF) ·Attachement B -Memo to Council (PDF) ·Attachment C-Park and Recreation Commission Top Ten List 2007 (PDF) ·Attachment D-Park and Rec Commission Staff Report El Camino Park (PDF) ·Attachment E -Feb 22, 2011 PARC Minutes (PDF) ·Attachment F-Conceptual Design (PDF) Prepared By:Daren Anderson, Department Head:Greg Betts, Director, Community Services City Manager Approval: ____________________________________ James Keene, City Manager 12.b Packet Pg. 532 TO: PARKS AND RECREATION COMMISSION FROM: Daren Anderson, Division Manager COMMUNITY SERVICES DEPARTMENT DATE: September 27, 2011 SUBJECT: El CAMINO PARK IMPROVEMENT PROJECT Recommendation Staff recommends that the Parks and Recreation Commission recommend to Council the approval of $2,682,164 of Park Development Impact Fees (impact fees) to fund the Parks and Recreation Commission’s and Council’s final list of improvements to El Camino Park (Attachment A). Executive Summary Since June 2010, staff and the Parks and Recreation Commission (Commission) have discussed possible park improvements at El Camino Park that could coincide with construction of the Utilities Department’s El Camino Park Reservoir Project (CIP WS‐08002) (Project). With the Commission’s guidance and considerable input, staff created a list of improvements (e.g., synthetic turf soccer/lacrosse field, expanded parking, and new pathways) that can be funded by impact fees. Staff is recommending that the Commission recommend that Council approve the final proposed design and the expenditure of $2,682,164 to fund the full list of improvements at El Camino Park. Background The Project, which is currently in its final stage of design for the reservoir and ancillary buildings, has created a unique opportunity for the City to leverage time and resources to improve several areas of the popular park. Since June 2010, the Commission has discussed park design improvements at eight regular meetings and one special on‐site meeting at the park. ● June 22, 2010‐ The Utilities Department presented to the Commission an update on the El Camino Park Reservoir Project. The Commission decided this was an opportunity to improve the park. 12.c Packet Pg. 533 ● June 29, 2010‐ A special Commission meeting was held at the park. Staff, Commissioners, and members of the public brain‐stormed ideas for possible improvements for the park which included synthetic turf fields, new public bathroom, improved pathways among many other creative ideas such as an outdoor volleyball court or BMX track. ● July 27, 2010‐ The Commission made a motion to have its list of improvement ideas forwarded to Siegfried Engineering Inc., the landscape architect firm designing the Project, to evaluate feasibility and possible costs. ● September 28, 2010‐ Many of the Commission’s suggested park improvements were included in the draft park project design. The Commission decided to move forward with making a recommendation to Council. ● October 26, 2010‐ Siegfried presented the Commission with an update on the design of the Project. The Commission provided additional input on the design. ● January 25, 2011‐ Siegfried presented the Commission with five design options for their consideration. The Commission asked to see a combination of three of the designs, and highlighted the importance of expanding public parking to accommodate expanded field use. ● February 22, 2011‐ Staff presented a conceptual design incorporating the Commission’s feedback, and presented two options for the use of impact fee to fund the improvements (discussed below). ● June 21, 2011‐ Staff returned to the Commission to discuss the options for dog park locations as directed by Council on June 13, 2011. Staff presented the Commission with five options for possible dog park locations for their consideration. The Commission voted 3:2 to recommend installing a dog park in the North side of the El Camino Park next to San Francisquito Creek. ● July 26, 2011‐ Staff returned to the Commission to discuss the options for additional parking as directed by Council on June 13, 2011. Staff presented five options for their consideration. The Commission concurred with staff and selected Option E, which adds an additional 29 parking spaces (total of 71). The Commission highlighted the need to include improvements for loading/unloading area into the parking lot design. 12.c Packet Pg. 534 Throughout these meetings the Commission raised questions and made comments about pedestrian/bike access to the park, restroom location (specifically related to safety and access), tree protection efforts, maximizing parking spaces to accommodate the expansion of recreational use, fencing possibilities for a joint dog exercise area, and lighting improvements. In addition to the Commission’s guidance on design features, Recreation staff has collected insight from various field user groups (during the annual field booking process) regarding preferred field design features such as synthetic turf, field size, and multi‐use designs to accommodate growing sports such as lacrosse. This input provided direction for the current design of park improvements. On June 13, 2011, staff presented Council with a recommendation for using impact fees to fund improvements at El Camino Park (Attachment B). Council approved the motion 8:1 (Price opposed) of using $1,420,500 of impact fees for the Commission’s and staff’s recommended improvements at El Camino Park with five amendments. Council instructed staff to: 1. Pursue connectivity at the north (across Alma Street to the pathway) and south end of the park (past the train station) for pedestrians and bicycles. 2. Return to the Parks and Recreation Commission for final design approval. (This will be brought to the Commission on September 27, 2011.) 3. Incorporate bike racks into the final design. 4. Return within 90 days with an alternative to the current PF zoning that would be more restrictive or restricted to recreational uses so as to create a disincentive for other uses in the future. 5. Incorporate into the final design some type of dog exercise area and provide more details on public parking to ensure that there will be no overflow parking into the neighborhood. Discussion 12.c Packet Pg. 535 Siegfried incorporated the Council’s, the Commission’s, and staff’s recommendations regarding site features to create a site design for improvements at El Camino Park (Attachment C). The design includes a synthetic turf soccer/lacrosse field on the north‐end of the park, and a natural turf softball/multi‐use field on the south‐end near the transit station. The recommended design includes an expanded parking lot that adds 26 parking spaces and a new loading/unloading area to the existing parking lot (total of 68 spaces), and a new dog park. The dog park design allows for a fenced dog run located in the undeveloped north side of the El Camino Park next to San Francisquito Creek. There is an existing light pole. The approximately .5 acre (about the size of half a football field) dog run will have a wood chip base, benches, and a water fountain. The design also includes a new decomposed granite exercise pathway with security lighting, mulch for the non‐turf areas, soccer catchment fencing, four picnic tables, a maintenance equipment storage shed, and electric conduit and footings, which will allow for adding soccer field lighting at a future time without damaging the artificial turf. Fifteen bike racks have been added to the design (each rack supports two bikes). The current park design requires the removal of two sweetgum (Liquidambar styraciflua) trees (size of the two trees: 17.4’’ and 20.4’’ diameter at breast height ‐dbh) for the project, and the removal of one old Monterey Pine tree for health and safety reasons. The project also requires relocating two small coastal redwood trees (size of trees 2.2’’ and 2.3’’ dbh) in the park. Thirty‐six new trees will be planted in the park as part of the conceptual design. The cost for the tree removals and relocations is estimated to be approximately $2,500. Staff is pursuing trail connectivity at the north end of the park (across Palo Alto Avenue to the pathway) and south end of the park (past the train station) for pedestrians and bicycles. Planning and Transportation and Parks staff will hire a contractor to perform a traffic safety study to confirm the best route for the connectivity at the north end of the park and the exact position of a safe crosswalk. Staff is also working with Stanford University and MacArthur Park to improve the pedestrian and bicycle connectivity at 12.c Packet Pg. 536 the south end of the park. Staff is requesting that concrete sidewalk be installed to allow for pedestrians and bicyclists to continue from the corner of University Ave at El Camino Real across the front of the MacArthur Park Restaurant past the top of Circle Drive and connect to the existing Class I multi‐use trail that runs past the Palo Alto Medical Foundation and Palo Alto High School. Council directed staff to return with an alternative to the current PF (Public Facility) zoning designation that would be more restrictive, or restricted to recreational uses so as to create a disincentive for other uses in the future. According to Curtis Williams, Director of Planning, PF zoning is the most restrictive zoning possible for the El Camino Park property. The PF zoning designation does not allow for residential development. Council’s (June 13, 2011) request to include increased parking ($500,000) and a dog run ($206,594) added significant costs to the project. Other costs that also increased were design and construction management ($400,000) (due to the lack of adequate City staff to assume construction management duties requires more contractor costs), and 10% contingency for the park improvements. There were also unanticipated costs such as planting perimeter trees and reseeding and irrigating the natural grass area north of the synthetic turf ($89,000). Part of the approved June 13, 2011 Council motion was a directive for staff to pursue a long‐term lease with Stanford for EL Camino Park beyond the current June 2033 expiration date. Palo Alto Utilities Department secured permanent easements for areas of the park where their reservoir and pump station are located in order to protect the sizeable investment in the infrastructure. Given the large investment the City is making in developing and enhancing other parts of the park, Council would like to pursue options for extending the City’s lease for El Camino Park. A request has been submitted from City Real Estate staff to Stanford University to consider the extension of the lease. Park Project Timeline ● October 2011 Council Approval Phase 2 Park Improvements 12.c Packet Pg. 537 ● September 2011 Begin Phase 1 Construction (e.g., reservoir, pump station) ● November 2011 Architectural Review Board Study Session ● November 2012 Complete Phase 1 (e.g., reservoir, pump station) ● November 2012 Begin Phase 2 Park improvement construction ● October 2013 Complete Phase 2. Park re‐opens to the public Resource Impact The El Camino Park Improvement Project, as recommended to the Parks and Recreation Commission would utilize $2,682,164 of the total $2.8 million in the impact fee account. This would leave a balance of $117,837 for future projects at this time. At the June 13 2011 City Council meeting, staff anticipated having a balance of $1,379,500 in the impact fee account. However, the additional Council directed park features (expanded parking lot and dog run) and other unanticipated costs have significantly increased the cost of the project. *The City anticipates that $_____ in new park development impact fees will be received in the next fiscal year. (This information will be available at the September 27, 2011 Parks and Recreation Commission meeting.) * This information was not provided at the meeting, the Planning department was unable to provide us with this amount. Policy Implications The proposed park improvements are consistent with Policy C‐26 of the Community Services element of the Comprehensive Plan that encourages maintaining park facilities as safe and healthy community assets; and Policy C‐22 that encourages new community facilities to have flexible functions to ensure adaptability to the changing needs of the community. The proposed project is consistent with the goals of the 2002 Athletic Fields Report. This project is also consistent with Parks and Recreation Commission policy that staff consider the construction of dog exercise facilities for large neighborhood or regional parks when designing park improvements. 12.c Packet Pg. 538 Environmental Review The Utilities Department’s El Camino Park Reservoir Project is subject to environmental review under provisions of the California Environmental Quality Act (CEQA). An EIR has been completed for this project in accordance with the CEQA requirements. An addendum to the EIR has been prepared to incorporate the additional park improvements called out in Attachment A. Attachments Attachment A‐ Park Improvements to be funded by impact fees Attachment B‐ CMR to Council June 13, 2011 Attachment C‐ El Camino Park Site Design Prepared By: Daren Anderson, Open Space, Parks, and Golf Manager Community Services Department 12.c Packet Pg. 539 Staff Recommended Impact Fee Use at El Camino Park Attachment B Improvements Impact Fee Costs Design, CA, and Construction Management 400,000$ Remove or Relocate Existing Trees 7,500$ Soccer Catchment Fence $ 62,500 8 foot Safety Fence $ 10,000 Synthetic Turf Soccer Field $ 809,000 New Storage Building $ 19,000 Trash Enclosure $ 25,000 Existing Restroom Demolition $ 10,000 Concrete Pathways and Flatwork $ 98,930 Extended D.G.. Pathway $ 36,000 Extended D.G.. Pathway Lighting $ 67,500 Electric Conduit for Soccer Field Lighting $ 36,715 Additional Parking with Drop Off, Lighting, and Landscaping $ 342,260 Picnic Areas and Bike Racks $ 25,000 Rubber Mulch Areas $ 30,000 Re-Seed and Irrigate North Grass Area and Plant Perimeter Trees $ 89,500 Contingency(10%) $ 206,891 Dog Park Including Contingency $ (207,000 + 10%) Defer project 0 Total:2,275,796$ Park Development Impact Fee Fund 2,813,245$ Park Development Impact Fee Balance 537,449$ 12.d Packet Pg. 540 City of Palo Alto (ID # 2633) Office of the City Clerk City Council CAO Report Meeting Date: 3/12/2012 Report Type: Action Items Title: Consideration of a Recommendation by the CAO Committee to the City Council to Approve a Contract with Sherry Lund Associates for the Amount of Not to Exceed $6,000 to Secure Additional Input from the Direct Reports to the Four CAO’s Performance Reviews. From: Donna Grider, City Clerk Background At the last CAO Committee meeting on February 28th, there was a discussion of a proposal from Sherry Lund to complete the four CAO (Council Appointed Officer) evaluations. The CAO Committee recommended approval of the original proposal and it is an item on the consent calendar for Monday, March 12th. During the discussion on February 28th, there were concerns raised about the possibility and value of considering adding additional direct report input, essentially a modified 360-degree element, to the CAO’s performance reviews for the period 2011-2012. Since this new element had not been formally introduced in the original proposal the CAO Committee voted 3-1 in favor of having this new proposal as an action item by the full City Council on March 12, 2012. The proposal is Attachment A. Proposal Sherry Lund of Sherry Lund Associates has provided a proposal for your review and consideration. The proposal notes the current evaluation process and explores how additional staff input could be gathered and incorporated into it. Ms. Lund describes two types of processes: input from direct reports and a broader, more extensive organizational/employee survey. 13 Packet Pg. 541 Page 2 The majority of the CAO Committee discussion focused on providing opportunities for direct reports to provide input during the performance evaluations of the four CAOs. The CAO Committee asked the consultant to provide a proposal exploring both the direct report input and the broader input (organizational/employee model) in more detail. The proposal examines the design and the pros and cons of each approach. The direct report input model, which would be added to the original proposal, would be designed to not to exceed $6,000. The second approach, a broader organizational/employee survey would cost more than that since it would be a much broader effort. The costs details of this proposal will not be explored unless the City Council directs that this approach would be desirable and worth the extra consulting costs based on a $250 hourly fee. The proposal suggests that the direct input approach is preferred since it would be more focused and easier to complete efficiently during the proposed evaluation schedule. The CAO Committee recommends the direct input model be added to the original performance evaluation cycle for an amount not to exceed $6,000 as noted earlier. Please contact me if you have any questions about the proposal. Councilmember Gail Price CAO Committee Chair ATTACHMENTS: • Attachment13.a: Sherry Lund Proposal 3-6-12 (DOCX) • Attachment13.b: CAO ACTION MINUTES 02-28-2012 (DOC) 13 Packet Pg. 542 Sherry L. Lund Associates, Portola Valley, CA (650) 619-5500 Page 1 of 4 247 La Cuesta Drive Portola Valley, CA 94028 (650) 619-5500 fax (650) 561-8414 sherrylund@aol.com March 6, 2012 Councilmember Gail Price Chairperson, Council/CAO Committee City of Palo Alto City Council 250 Hamilton Avenue Palo Alto, CA 94301 Dear Councilmember Price and Palo Alto City Council Members: On February 28, the CAO Committee asked that I propose a means of including staff feedback in order to get closer to 360 degree feedback for CAO annual reviews. I was asked to provide the pros and cons of how this could best be accomplished. Below, I provide two options: 1) City Manager Direct Staff 360 Feedback; and 2) Organization/Employee Survey. I do not recommend Option 2. I do recommend Option 1, because it is methodologically sound, relatively low cost, and can be implemented in time to support the CAO annual performance review cycle. Proposed Staff Member Input for CAO Annual Performance Reviews Current Situation As part of the annual CAO evaluation process, feedback is currently collected from several directions: ▪ All nine Councilmembers (bosses) provide ratings and comments on each CAO. ▪ I gather feedback from each CAO’s peers. ▪ Council members typically have the opportunity to directly observe how CAOs interact with the community and stakeholders in a variety of venues including: community and stakeholder meetings and events; committee meetings; at Council meetings; and in informal conversation. Proposal The one direction in which feedback is missing is from below—the CAO’s direct reports. Council members do rate CAOs on staff leadership. However, they usually have little direct visibility into this area of performance. In my experience, in both the public and private sector, feedback from below typically comes from direct reports and not from all levels of staff. Therefore, I propose soliciting feedback from the City Manager’s, City Attorney’s and City Auditor’s direct reports, and (due to the small department size), all four of the City Clerk’s staff members. 13.a Packet Pg. 543 Sherry L. Lund Associates, Portola Valley, CA (650) 619-5500 Page 2 of 4 Purpose of Gathering Feedback From Direct Reports The intent of gathering feedback from staff for a performance review is not to enable the Council to closely direct how any CAO leads. Rather, it is intended to provide a high level picture of staff satisfaction with their CAO, pro or con, including some specific examples. This feedback allows Council to fully recognize the level of excellence of a CAO’s leadership. It also provides Council an early warning, should broad discontent among staff begin to brew outside their normal field of vision. Requirements for Success Gathering feedback from staff members must be done thoughtfully and interpreted in context. First, the methodology must be sound. Second, feedback must be weighed in light of two factors: a) employee performance (e.g., is employee a strong performer or someone who is on a performance improvement plan); and b) whether employee and CAO expectations of each other are aligned with generally good management practice. The process that I propose closes the gap in the present evaluation of staff leadership. Reasons to Use Direct Staff Feedback This method: ▪ Closes the gap in a 360 degree view of how CAOs perform. ▪ Provides a wider view into CAO leadership, of which Council might otherwise not be aware. ▪ Allows Council to see examples of excellent leadership in CAOs as well as make them aware in early stages should broad discontent among staff be developing. Most direct reports will also be aware of any significant concerns that their staff members may have about CAOs. ▪ Provides the right level of detail of which Council should be aware to manage their CAOs. ▪ Is methodologically sound and is relatively low cost. Reasons Not to Use Direct Staff Feedback ▪ Delays in contracting and getting started on the process too late could delay other parts of the annual review schedule. ▪ It requires an additional expenditure. Process Overview Following are the steps I will take: 1. Interview CAOs to get their context and input for employee feedback (e.g., who, if anyone, is on a performance plan, any other circumstances I should know about. 2. Attend a meeting of each CAO with those being surveyed to introduce myself, describe what we are doing and why. Input will be gathered from the direct reports of the City Manager (12), the City Attorney (9), and the City Auditor (6). In the latter two cases, all employees in the department are also all direct reports. I would also gather input from all 4 employees in the City Clerk’s office. They are not all direct reports, but the small numbers make it essential to include everyone in order to preserve anonymity. 3. Collect written feedback through a combination of a few (probably 5-6) simple written survey questions. I will make some brief follow-up phone calls to explore resulting questions that may arise in the written feedback, and to gather more examples to clarify patterns of comments. Staff feedback will be anonymous to CAOs and to Council but not to the Consultant. 4. Council members will receive a brief (1-3 pages) summary to inform their annual review feedback to CAOs. 13.a Packet Pg. 544 Sherry L. Lund Associates, Portola Valley, CA (650) 619-5500 Page 3 of 4 Why Not Include Other Levels of Staff Below Direct Reports It makes sense, from a methodology standpoint, to gather feedback from all 12 of the City Manager’s direct reports. This is standard practice in public and for-profit organizations. Feedback is solicited from those who have the most direct contact. Gathering feedback from only three of them (out of 12) and three at the next level (out of perhaps 120 employees) and four at the next level (out of perhaps 700-900 employees) would not produce meaningful results. Managers and employees below direct reports are not likely to have much direct contact with the City Manager. Seeking broad input on total employee satisfaction is best accomplished through an organizational/employees survey (see an explanation below). Timeline ▪ Process must be approved now and work must begin by April 1 in order to meet other major milestones for the annual CAO evaluation cycle. Cost For the process described above, the cost is $ 6,000, which includes all expenses. Please note that, for reasons described above, the number of people surveyed and the levels of those surveyed are not interchangeable. Outside of the approach described above, all planning work, data collection, and reporting additions will be charged at $250/hour. Organizational/Employee Survey Should the Council want to get input from employees beyond the Manager’s 12 direct reports, then an organizational/employee survey is a better tool. I have experience designing and managing large organizational/employee surveys. However, I do not recommend this approach. Organizational/employee satisfaction surveys are used to pursue more detailed feedback from all levels of staff and about all levels of management than the proposed method described above. Surveys can provide detailed feedback to a CAO and to the Council on areas of organizational and leadership strength and needed improvement, while soliciting input from every employee in the City. The purpose of such a survey is usually broader organizational improvement, not just executive improvement. Reasons to Use an Organizational/Employee Survey ▪ It provides a broad picture of the level of employee satisfaction across the entire organization. ▪ It is one way to make broad organizational improvement objectives visible to the whole organization. Reasons to Not Use an Organizational/Employee Survey ▪ It is costly (many thousands of dollars). ▪ It requires a lot of management time and a significant amount, collectively, of employee time. One must consider what else would not get done in order to pursue the survey and resulting action plan. Employee expectations will be raised, so it is important to communicate results and deliver an action plan. ▪ It can’t be implemented before the July 2012 CAO evaluations. It is a longer-term strategy. It should be noted that, in the extraordinary economic times that we are in, levels of employee satisfaction are expected to be lower in most environments. The global economy has stalled salary increases, has led to reduced benefits, and has stymied career advancement and mobility in both the 13.a Packet Pg. 545 Sherry L. Lund Associates, Portola Valley, CA (650) 619-5500 Page 4 of 4 public and the private sectors. Councils and CAOs have had to figure out how to manage situations that they didn’t create. Finally, in my experience, employee surveys are most useful when they are simple. Complexity takes more time and doesn’t necessarily lead to better, actionable outcomes. Most organizations can’t really focus on more than 2 or 3 significant improvements at any one time under the best of circumstances and still get their core work done. Those that are understaffed to accomplish the core work must think very carefully about embarking on an organizational survey. Cost Should the Council wish to consider an employee survey, the fee for developing a plan and scope would be $250/hour. Please let me know if I may answer any additional questions. Best regards, Sherry Lund Principal 13.a Packet Pg. 546 COUNCIL APPOINTED OFFICERS COMMITTEE ACTION MINUTES __________________________________________ Special Meeting February 28, 2012 1. Consideration of a Recommendation by the CAO Committee to the City Council to Approve the Contract with Sherry Lund Associates for the Amount of Not to Exceed $35,050 to Complete the Four CAO Evaluations for the 2011-2012 Performance Review Cycle. MOTION: Vice Mayor Scharff moved, seconded by Council Member Espinosa to recommend to the City Council to approve the contract with Sherry Lund for $35,050 for 2012/2013 year. MOTION PASSED: 4-0 MOTION: Council Holman moved, seconded by Council Member Espinosa to suggest Council consider a modified 360 review which would include a description of a modified 360, budget, and benefits analysis of conducting a modified 360 review. MOTION PASSED: 3-1 Scharff no 13.b Packet Pg. 547