Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
2013-04-15 City Council Agenda Packet
CITY OF PALO ALTO CITY COUNCIL Special Meeting Council Chambers April 15, 2013 6:00 PM Agenda posted according to PAMC Section 2.04.070. Supporting materials are available in the Council Chambers on the Thursday preceding the meeting. 1 April 15, 2013 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. * The agenda now includes time estimates for each section or item. These are provided as part of the Council's effort to manage its time at Council meetings. Listed times are estimates only and are subject to change at any time, including while the meeting is in progress. The Council reserves the right to use more or less time on any item, to change the order of items and/or to continue items to another meeting. Particular items may be heard before or after the time estimated on the agenda. This may occur in order to best manage the time at a meeting or to adapt to the participation of the public. To ensure participation in a particular item, we suggest arriving at the beginning of the meeting and remaining until the item is called. 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, Kathryn Shen, 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: City of Palo Alto et al. v. California High-Speed Rail Authority Superior Court of California, County of Sacramento, Case No. 34-2010-80000679 Authority: Government Code section 54956.9(a) Study Session 3. Update on the Progress in Implementing the Climate Protection Plan - Earth Day Report 2 April 15, 2013 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. Special Orders of the Day 4. Proclamations Expressing Appreciation to Terry Godfrey, Rachel Samoff, Rob Steele, and Environmental Volunteers for Outstanding Public Service 5. Selection of Candidates to be Interviewed for the Library Advisory Commission for Two Terms Expiring on January 31, 2016 6. Selection of Candidates to be Interviewed for the Public Art Commission for One Term Expiring on April 30, 2015 Agenda Changes, Additions and Deletions HEARINGS REQUIRED BY LAW: Applications and/or appellants may have up to ten minutes at the outset of the public discussion to make their remarks and put up to three minutes for concluding remarks after other members of the public have spoken. OTHER AGENDA ITEMS: Public comments or testimony on agenda items other than Oral Communications shall be limited to a maximum of three minutes per speaker. City Manager Comments 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. 7. Recommendation that City Council Approve a Contract with Opower for the Provision of Home Utility Reports to Residents Comparing Energy and Water Use 8. Adoption of a Resolution Approving and Authorizing the City Manager to Execute and Amend the Northern California Power Agency Operating Agreement for Scheduling Coordination Services for Renewable Resources 9. Approval of Six On-call Building and Inspection Services Contracts as follows: 1) 4Leaf in the amount of $725,000, 2) Interwest Consulting Group in the amount of $50,000, 3) CSG Consultants in the Amount of $50,000, 4) West Coast Code Consultants in the Amount of $385,000, 5) Kutzmann & Associates in the Amount of $240,000, and 6) TRB & Associates in the Amount of $50,000 3 April 15, 2013 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. 10. Preliminary Approval of the Report of the Advisory Board for Fiscal Year 2012 in Connection with the Palo Alto Downtown Business Improvement District and Adoption of Resolution Declaring its Intention to Levy an Assessment Against Businesses within the Downtown Palo Alto Business Improvement District for Fiscal Year 2014 and Setting a Time and Place for a Public Hearing on May 6, at 7:00 PM or Thereafter, in the City Council Chambers 11. Approval of Amendment No. 3 to Extend Contract No. C05109138 for Three Additional Years in the Amount of $62,000 per Year for a Total of $186,000 With The United States Geological Survey for San Francisco Bay Monitoring 12. Approval of Finance Committee Recommendation Regarding Adoption of Budget Amendment Ordinance Amending the Budget for Fiscal Year 2013 to Adjust Budgeted Revenues and Expenditures in Accordance with the Recommendations in the Midyear Report 13. Adoption of an Ordinance Amending Palo Alto Municipal Code Section 5.35 to Expand Plastic Bag Ban to Retail and Food Establishments, Require Retailers to Charge Fee for Paper Bag Use and Provision of Phased Implementation 14. Recommendation to Authorize the City Manager to Execute the Second Amended and Restated Memorandum of Agreement with the Bay Area Recycled Water Coalition to Pursue Federal Legislative Efforts Related to Recycled Water Projects 15. Adoption of a Resolution Approving Amendment Number One to the Water Supply Agreement with the City and County of San Francisco Action Items Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials, Unfinished Business and Council Matters. 16. Policy & Services Committee Recommendation to Approve Revisions to Section 2.4 of the City Council Protocols Setting Forth the Conduct of Council Liaisons to Palo Alto Boards and Commissions (continued from March 18, 2013) 17. Colleagues Memo Requesting that the Staff and Planning and Transportation Commission (PTC) Review Sidewalk Widths With a Focus 4 April 15, 2013 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. on El Camino Real and the Grand Boulevard Plan and Return to Council With Suggested Zoning Amendments 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. 5 April 15, 2013 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Additional Information Standing Committee Meetings Infrastructure Committee Meeting Finance Committee Meeting City/School Committee Meeting Schedule of Meetings Schedule of Meetings Tentative Agenda Tentative Agenda Informational Report Storm Drain Oversight Committee Review of FY2012 Storm Drainage Fund Expenditures City of Palo Alto Investment Activity Report for the Third Quarter, Fiscal Year 2013 Independent Police Auditors Year-End Report for 2012 Public Letters to Council Set 1 Set 2 City of Palo Alto (ID # 3662) City Council Informational Report Report Type: Study Session Meeting Date: 4/15/2013 April 15, 2013 Page 1 of 11 (ID # 3662) Council Priority: Environmental Sustainability Title: Summary of Sustainable Activities Subject: Update on the Progress in Implementing the Climate Protection Plan - Earth Day Report From: City Manager Lead Department: Utilities Recommendation This is an informational report and requires no Council action. Executive Summary Since adoption of Climate Protection Plan (CPP) by the City Council in December 2007, and the adoption of updated goals in 2010, the City of Palo Alto’s municipal operations (City) and the Palo Alto Community (Community) have made much progress in reducing their carbon footprint and adopt sustainable practices. The 2012 greenhouse gas (GHG) emissions from City operations are estimated to be 53% below 2005 levels, exceeding the Council’s goal to reduce these emissions by 20% by 2012. The activities that led to these reduced emission levels also resulted in reduction of the cost to the City for electricity and natural gas utility services and for vehicular fuel by approximately $500,000 a year in 2012. GHG emissions in 2012 by the City and Community combined are estimated to be down 22% below 2005 levels, exceeding the Council goal of 15% reduction below 2005 levels by 2020. Staff’s preliminary estimate is that the Community’s GHG emissions in 2012 were 28% lower than 1990 emission levels based on estimated community mobile fuel use and consumption of electricity and natural gas. If these estimates are confirmed, the Community has made a head start towards the state’s goal of reducing 2050 emissions by 80% below 1990 levels. The GHG reductions since 2005 were largely achieved by the greening of electricity supplies, aggressive electricity and natural gas efficiency programs, conservation efforts, utilization of landfill gas at the water quality control plant, and energy efficiency projects at the plant. An initial assessment of transportation-related emissions suggests that GHG emissions from this sector have also declined. The City’s plan for carbon neutral electric supply in 2013 will April 15, 2013 Page 2 of 11 (ID # 3662) eliminate the 75,000 Metric Tons (MT) of GHG emissions associated with this source in 2012, and will reduce the Community’s 2013 emissions by 37% below 1990 levels. In the coming year, with input from Council, staff expects to develop a new CPP in coordination with the planned update to the City’s Comprehensive Plan. If the community chooses to further reduce emissions and allocate commensurate resources towards this effort, Palo Alto could become a model city as California embarks on the journey to meet the state’s aspirational goal of 80% reduction (from 1990 levels) by 2050. Aspects of adaptation to climate change will also be considered in this assessment Background Climate change has become perhaps the most important threat facing the global environment and economy. In California, the effects of climate change are likely to reduce the availability of hydroelectric generation, impact the availability of our water supplies, increase the incidence of forest fires and extreme weather events, and lead to a rise in sea level, which would impact Palo Alto's shoreline and flood prone areas. The City took a leadership role in 2007 as one of the first U.S. cities to develop a Climate Protection Plan (CPP), also referred to as the Climate Action Plan by other cities. The CPP describes measures that could be taken to reduce the City's GHG emissions and set GHG reduction goals. The City’s CPP and GHG emissions reduction goals are described in detail in Attachment A. In brief, the GHG emission reduction goals are: By 2012, the City will reduce GHG emissions by 20% below 2005 levels. By 2012, the City and Community will reduce emissions by 5% below 2005 levels. By 2020, the City and Community will reduce emissions by 15% below 2005 levels. Discussion Greenhouse Gas Emission Measurement and Reporting Protocols To quantify and report on GHG emissions related to City operations, the City has followed the Local Government Operations Protocol (LGOP), which is widely recognized by the industry and regulators. These reports were voluntarily filed with California Climate Action Registry (CCAR) since 2005 and with The Climate Registry (TCR) since 2010. In the beginning, the reports were verified by independent auditors. In recent years, due to the high cost of the audits, the City has filed the reports but has not commissioned independent verification audits. However, with the approval of the Carbon Neutral Plan for the electric portfolio, the City expects to reinstate the independent verification function to provide independent review of City’s TCR filings. The City also separately voluntarily reports to the US EPA on the management of SF61, a highly 1 SF6 is a highly potent greenhouse gas used in electrical switchgear as an insulation medium in the past, but at present being gradually phased out. In addition to voluntary TCR reporting, the City also has a number of mandatory GHG reporting under California Air Resources Board (CARB) regulations to implement state law AB32 for the electric utility, gas utility and WQCP operations. Several of these reports also are subject to mandatory independent verification audits. April 15, 2013 Page 3 of 11 (ID # 3662) potent GHG used in electrical equipment by the electric utility. City emissions shown in this report were based on these filings. In addition to ‘corporate entity’2 level GHG emissions reporting for City operations to TCR, ‘ICLEI protocols’3 provide for total community level measurement and reporting of GHG emissions. The City and Community level emissions provided in this report conform to this protocol. GHG Emissions from City Operations As illustrated in Figure 1 below, emissions from City operations in 2012 have been reduced by 53% since 2005, exceeding the 20% reduction goal. The reductions are primarily from improvements at the Water Quality Control Plant (WQCP), efficiency improvement undertaken at many facilities including City Hall building, participation in recycling and other waste management programs, greater use of renewable electric supply, and reduced utilization of the back-up electrical generator at the Municipal Service Center. Descriptions of these improvements are provided in Attachment B. The annual operational cost saving from these improvements total approximately $500,000 per year per year, with $350,000 of savings attributable to improvements at the water quality control plant, $50,000 related to lower utility bills for City facilities, and more than $100,000 in reduced fuel consumption by the City fleet. 2 TCR requires corporate level filing of the GHG emission inventory (in this case the City municipal corporation operations) to report all emissions that are within the control of that legal entity. For Palo Alto this excludes emissions such as those related to community transportation. As an electric and gas utility, the City does have some control over emissions related to these two energy sources, and, therefore, must count them in the inventory. 3The International Council for Local Environmental Initiatives (ICELI) protocol is a premier GHG reporting standard for local governments and communities. April 15, 2013 Page 4 of 11 (ID # 3662) Figure 1: City Operations GHG Emissions: 2005 vs. 2012 (Total Emissions Reduced from 42,000 MT to 20,000 MT4, a 53% reduction5) GHG Emissions from Community and City Municipal Operations Figure 2 below summarizes the combined City and Community emissions in three categories6. 4 MT refers to metric tons of carbon dioxide equivalent (CO2e) emissions. 5 The emissions reduction excluding adjustments to account for variations in hydro-electricity production and PaloAltoGreen purchases is 31%. This is primarily because 2012 was a relatively dry year which resulted in hydro electric supply providing 42% of electric needs, instead of the 52% supply Palo Alto would have received in an average hydro year or about 62% of supply in a wet year. Staff has revised its baseline calculations for City operations emissions to be in line with the current calculation methodology known as the Local Government Operations protocol (LGOP). The LGOP was developed by California Air Resources Board (CARB) staff in partnership with the Climate Action Reserve (CAR), The Climate Registry (TCR), and Local Governments for Sustainability. 6 Scope 1 is defined to be direct emissions that the City can control and as a natural gas utility it primarily includes natural gas related communitywide GHG emissions. Scope 2 is communitywide emissions related to electricity usage. Scope 3 is emissions not in scope 1 or scope 2. (World Resource Institute protocol adopted by TCR). April 15, 2013 Page 5 of 11 (ID # 3662) Figure 2: Community and City Operations GHG Emissions: 2005 vs. 2012 (Total Emissions7 reduced from 798,000 MT to 619,000 MT, a 22% reduction) The use of natural gas has decreased slightly, primarily as a result of efficiency improvements and a large commercial natural gas customer leaving town. The electricity emissions reduction accounts for the majority of the reduction and is largely due to greater amount of renewable energy supply. The Community’s purchase of PaloAltoGreen renewable energy certificates (RECs) was factored into the Community’s total emissions8. Attachment C provides greater detail. An assessment of transportation-related emissions was conducted by consultants earlier this year, and preliminary results suggest a 10% reduction vehicle related emissions despite an increase in ‘service population’ in Palo Alto. This decrease was driven by a reduction of per capita miles travelled and improved vehicular fuel efficiency. A detailed description of the 7 The total emissions estimate is adjusted for hydroelectric production variations caused by weather and PaloAltoGreen energy purchases. Staff has revised its baseline calculations in line with the LGOP protocols. 8 A reduction of 879 lbs of CO2e per REC purchased is used to estimate the GHG emission reductions for PaloAltoGreen program. This factor is the US EPA estimate for emissions from natural gas fired electric generation in 2005. April 15, 2013 Page 6 of 11 (ID # 3662) study results and assumptions is provided in Attachment F. Table 1 below summarizes the results and shows that emissions were reduced by 13.6%, from 371,870 MT in 2005 to 321,200 MT in 2012. It also shows the corresponding emission estimates for year 1990, the base year utilized by the state for emission reduction goals under state law AB32. Table 1: Estimates of Vehicle Emissions within Palo Alto City Limits Source: Fehr and Peer Report of 03/19/2013 Assessment of GHG Emission Trends Since 1990 California’s Global Warming Solutions Act (AB32) of 2006 calls for statewide GHG emission reduction and establishes a goal of reducing emissions to 1990 emission levels by 2020. Staff’s preliminary estimate is that the Community’s GHG emissions in 2012 are 28% below 1990 emission levels based on estimated mobile fuel use and consumption of electricity and natural gas as outlined in Table 2 below. April 15, 2013 Page 7 of 11 (ID # 3662) Table 2: Community and City Greenhouse Gas Emission Estimates for 1990, 2005 and 2012 1990 2005 2012 1990 2005 Natural Gas 194 166 160 -18%-4% Electricity 186 160 75 -60%-53% Mobile Combustion*382 372 335 -12%-10% Other**100***100 49 -- Total 862 798 619 -28%-22% Greenhouse Gas Emissions (000’s of MT) (City Operqations and Community) % Change 2012 vs.Emissions Drivers * Consultant estimates based on population, employment, vehicle miles travelled and vehicular emission profiles ** Includes landfill, refuse and water WQCP emissions *** This estimate for 1990 is held at the same level as that of 2005, to be revised at a later time In addition to the emission reduction goals, the City’s CPP also had other goals. These goals are tabulated below along with the progress made in achieving those goals. CPP Goals Update on Progress Incorporate carbon reduction into the City's Comprehensive Plan goals to ensure continuity with other City priorities The new CPP is expected to be developed in coordination with the update to the City’s Comprehensive Plan. This coordinated development process will be ready for Council consideration later in 2013 Explore and evaluate a policy whereby all of the Palo Alto Utilities would become climate neutral and enable customers to choose climate neutrality through various voluntary mechanisms. The City developed PaloAltoGreen volunteer program, and the program became the nation's top-ranked voluntary renewable energy program. In March 2013 Council approved the Carbon Neutral Plan for electricity supply for all customers starting in 2013. Maintain and report GHG inventories on a regular basis Staff has compiled and reported on annual GHG emissions inventory of City operations to national registries (CCAR, TCR) since 2005. Since 2010, Utilities has also been reporting to CARB. Promote participation by Palo Alto businesses in GHG inventory efforts A number of large companies in the City quantify their carbon footprint and the City assists them in providing utility related emission coefficients. Staff will continue to be active in Sustainable Silicon Valley, Joint Venture Silicon Valley, Santa Clara County Sustainable Office, California Air Resource Board (CARB), GreenCitiesCALIFORIA, and other related regional and state forum. April 15, 2013 Page 8 of 11 (ID # 3662) A more detailed list of accomplishments by the City is provided in Attachment D. It summarizes many of the City’s sustainability efforts, and includes the following sections. I. Utilities Operations II. Sustainable Purchasing, IT and Administrative Practices III. City Fleet Operations IV. City Facilities Operations and Capital Projects; Public Works Projects V. Green Building VI. Zero Waste and Landfill Operations VII. Water Quality Control Plant (WQCP) Operations VIII. Education, Motivation, and Community participation City’s Sustainability Policy and organizational structure is described in Attachment E. Description of Transportation and Land-use related activities are provided in Attachment F. Cost-Benefit Analysis and Impacts on City Budget The City undertakes cost-benefit analyses to prioritize GHG emission reduction actions for large projects. For example, when evaluating efficiency and conservation programs Utilities uses a ‘Total Resource Cost9’ approach. The WQCP’s decision to replace chlorine disinfection with an Ultra-Violet light based disinfection process was based on a life-cycle cost assessment. Replacement of street lights with Light Emitting Diode (LED) based fixtures had an 8-year payback on the investment. Though most of the City Hall building capital projects were justified based on non-energy efficiency related factors (maintaining occupant comfort and extending the life of the building), when selecting energy consuming equipment such as boilers, lighting, and motors for various applications, cost-effective energy efficiency improvement was an integral part of the decision making process. In evaluating alternate fueled vehicles for the City fleet, a similar analysis is undertaken. As a result of these efforts, the City’s saved an estimated $500,000 in utilities and vehicle fuel costs in 2012. The City will continue to emphasize cost-effectiveness whenever making purchasing decisions and will continue to include the cost of carbon in such assessments. How the Climate Protection Plan fits into other Environmental Sustainability Efforts The CPP intersects with and influences many other environmental sustainability programs and initiatives. For example, the Zero Waste plan calls for an increase of the diversion rate of several categories of solid waste which will significantly reduce Community GHG emissions. Another example is the Urban Forest Master Plan, where there are not only benefits from the carbon sequestration properties of an urban canopy, but value could also be garnered by reducing air-conditioning related energy costs by strategically locating trees to shade buildings. The Carbon Neutral electricity plan was also driven by the community’s desire to reduce its carbon footprint. Attachment D provides an update on all these activities and results to date. 9 The Total Resource Cost test measures the net costs of efficiency programs based on the total costs of the program, including both the participant and utility costs, and includes cost of carbon. April 15, 2013 Page 9 of 11 (ID # 3662) Economic Development and City’s GHG Reduction Goals Based on input from Council last year, staff has begun a preliminary assessment of the impact of the City’s GHG reduction goals on the community’s economic activities. While this is a broad and complex topic to assess in detail, the following observations could be made based on state- wide assessments and community level developments in recent years. The State of California in its economic analysis of the impact of regulations in implementing GHG emission reductions measures related to state law AB32 concluded that: “ …successful implementation of measures designed to reduce greenhouse gas emissions by increasing the efficiency with which California uses all forms of energy and by reducing its dependence on the fossil fuels that produce greenhouse gases…will mean that we can achieve the goals of AB 32 without adversely affecting the growth of California’s economy over the next decade, especially as the state recovers from the current economic downturn.10” In addition, the following examples demonstrate that the Community’s forward looking sustainability goals only strengthen community cohesion and contributes to Palo Alto’s economic and social vitality: The community surveys conducted (2012) when developing the electric Carbon Neutral Plan and participation in the PaloAltoGreen program indicate that there is wide support in Palo Alto to pay a little more for sustainable growth and to reduce the Community’s GHG emissions. Utility bill savings accruing from efficiency and conservation measures undertaken by Palo Alto residents (since 2007) are estimated at approximately $5 million per year.11 This savings was likely deployed in other areas of the community activity spurring economic growth. The growth of cleantech companies in Palo Alto and Silicon Valley has clearly added to the economic vitality of the community. An interesting anecdotal example is the launch of the Utilities Emerging Technology (Test Bed) Program, which influenced a start-up company’s decision to locate and grow its operation in Palo Alto.12 10 Updated Economic Analysis of California’s Climate Change Scoping Plan. Air Resources Board, March 2010. 11 See Fig D-4 in Attachment D, which shows that per capita electricity, natural gas and water consumption has reduced considerably since 2007. 12 Autogrid, Inc., a Stanford based start-up, located its offices in Palo Alto and signed its first contract from the City to assist with the Commercial Customer Electricity Demand Response program, and at present has two dozen employees. April 15, 2013 Page 10 of 11 (ID # 3662) Future Vision for the Climate Protection Plan In the coming year, in coordination with the development of the City’s Comprehensive Plan, staff expects to develop a new CPP. It is anticipated that the new CPP will demonstrate Palo Alto’s leadership role by addressing the state’s aspirational GHG reduction goal of 80% reduction (from 1990 levels) by 2050, a stretch goal set by the California Governor’s order S-3- 05 of June 200513. The CARB is expected to begin regulatory proceedings to examine how to reach this goal in 2013, though actual recommendations may be years away. In order to contribute toward such an ambitious goal, attention will have to be paid to the topics of: switching fuel sources from natural gas and gasoline/diesel to carbon neutral electricity; continued emphasis on conservation and efficient use of fossil fuels; smart transportation/land-use development; enhanced building codes and standards; and encouraging the development and deployment of breakthrough greening technologies through collaborative programs with the technology community. Adaptation to Climate Change In addition to such GHG emissions reduction efforts, Palo Alto will also play a leadership role in developing regional approaches and state/national level efforts to adapt to the impacts of climate change. Low-lying areas of Palo Alto (generally east of Louis Road) are subject to tidal flooding and mandatory flood insurance purchase requirements due to the inadequacy of the network of earthen levees along the San Francisco Bay shoreline. The risk of tidal flooding will rise in the future due to anticipated increases in sea level associated with global climate change. Although Palo Alto has lessened the risk to lives and private and public infrastructure by preserving large areas east of Highway 101 as dedicated open space, there are still several thousand mostly residential parcels within the tidal floodplain. The City’s primary response to sea level rise will be to advocate for raising and strengthening of the system of Bayfront levees. The two agencies with primary responsibility for improving the levees are the US Army Corps of Engineers (Corps) and the Santa Clara Valley Water District (District). The Corps-sponsored South San Francisco Bay Shoreline Study is addressing the need for levee improvements in the South Bay. This study has been progressing at a very slow rate, however, due to a lack of federal funding. The District has taken steps to accelerate the improvements through the use of local funding and State grant monies. The District has received a grant from the State Department of Water Resources to conduct design and environmental assessment of local levee improvements. In addition, the District ballot measure approved in the November 2012 election has $20 million earmarked for the study and design of levee improvements in Santa Clara County. Palo Alto staff continues to stay engaged in ongoing 13 Since CARB is also expected to delve into ways of meeting this long term aspirational 80% reduction goal for the state in 2013, the development of the new CPP could also be coordinated with this state effort. April 15, 2013 Page 11 of 11 (ID # 3662) discussions with the District, as well as the San Francisquito Creek Joint Powers Authority and the City of Mountain View, on the need for levee improvements to protect the community from the impacts of sea level rise. New Governance for Sustainability In the past year, staff has institutionalized new organizational elements to facilitate the movement to sustainability. Attachment E discusses the enhanced sustainability governance structure to continue to spur sustainability action within City operations and the Community, and to provide leadership at the regional and national level. The hiring of a Chief Sustainability Officer will help to coordinate the efforts already underway and in planning future City departmental initiatives. NEXT STEPS Each department within the City will continue to work on sustainability projects in their individual areas and in coordination with one another. Upon the recruitment of the new Chief Sustainability Officer, an update CPP will be developed in coordination with the development of City’s updated Comprehensive Plan, and under the umbrella of the new sustainability governance structure. Attachments: Attachment A - Summary of 2007 Climate Protection Plan and Updates from 2010 (PDF) Attachment B - City Municipal Operations Emissions (PDF) Attachment C - Palo Alto Community and City Municipal Operations GHG Emission (PDF) Attachment D - Sustainability Initiatives of the City (PDF) Attachment E - Sustainability Policy and Organizational Structure (PDF) Attachment F - Transportation and Sustainable Landuse (PDF) Attachment A: Summary of 2007 Climate Protection Plan & Updates from 2010 Page 1 of 3 Summary of the 2007 Climate Protection Plan NOTE: Emissions estimates have been updated since 2007, and are reflected in the body of the report. This summary is for reference purposes only. In December 2007 Council approved a Climate Protection Plan (CPP) that set a short, medium, and long term goals to reduce City operations and community greenhouse gas (GHG) emissions. These goals were: 1. Short Term Goal: By 2009, the City Operations will reduce emissions by 5% from 2005 emission levels for a total reduction of 3,266 metric tons of CO2. 2. Medium Term Goal: By 2012 the City Operations and Community will reduce emissions by 5% from 2005 emissions level for a total reduction of 29,702 metric tons of CO2. 3. Long Term Goals: By 2020, the City Operations and Community will reduce emissions by 15% of 2005 levels, equal to 119,140 metric tons of CO2, and bring the community in line with State emission reduction goals. Figure 1 and Figure 2 are the City’s and Community’s GHG emissions profiles, as outlined in the 2007 CPP. The City’s emissions of 65,329 Metric Tons of CO2e (MT CO2e) and the Community’s emissions of 728,720 MT CO2e combined are equivalent to approximately 14 tons per resident. Electricity and natural gas related emissions account for approximately 40% of the 793,621 MT CO2e total municipal plus community emissions. (Note: the natural gas leakage estimate has since been substantially revised downwards, from 19,358 MT CO2e to 4,717 MTCO2e.) Figure 1: Municipal (City Operations) GHG Emission Sources in 2005 (65,329 MT CO2e) Source: Climate Protection Plan: December 2007 Attachment A: Summary of 2007 Climate Protection Plan & Updates from 2010 Page 2 of 3 Figure 2: Community GHG Emission Sources in 2005 (726,720 MT CO2e) Source: Climate Protection Plan: December 2007 Short Term GHG Reduction Goals The City operations undertook a number of departmental level initiatives to meet the goal to reduce municipal GHG emissions by 5% at the end of 2009. Utilities energy efficiency and conservation programs were integral part of this effort. The initiative was classified under five main categories: employee education, electricity conservation and efficiency upgrades, paper use reduction, commute reduction, and waste reduction. A revised 2005 benchmark of 29,364 MT CO2e was established. This lower benchmark down from 65, 329 MT, figure 1 above) reflects the reduced estimate for natural gas leakage and biogenic emissions from the waste water treatment plant because the facility serves other cities too and Palo Alto has minimal control over those emissions. April 2010 Update In April 2010, staff reported to Council that municipal GHG emissions declined by 11% in 2009 relative to the revised baseline year of 2005 (excluding employee commute estimates) (CMR: 194:10). Emissions were down from 29,364 MT CO2e to 25,518 MT CO2e. The principle contributors to this reduction are outlined below: Attachment A: Summary of 2007 Climate Protection Plan & Updates from 2010 Page 3 of 3 Major upgrades and process improvements at the water quality plant, accounted for 75% of the reduction o Replace natural gas used in the bio-solids incinerator emission control equipment with landfill gas that had previously been burned in a flare o Improve aeration system and replace air diffusers o Install more efficient motors and lighting fixtures Upgrade building systems and fixtures o Lighting fixture upgrades at the Elwell Court building o Reduced lighting levels at selected locations o City hall upgrades: motors, boilers, HVAC system Updated 2012 GHG Reduction Goal for the City Based on the progress made since 2007, City Council in 2010 increased the City municipal GHG reduction goal to 20% below 2005 levels by 2012. Attachment B: GHG Emissions of City Municipal Operations Page 1 of 3 Attachment B: GHG Emissions of City Municipal Operations: Year 2005 versus 2013 City municipal operations related emissions drivers and associated emissions are shown below. Table B1: City Operations GHG Emission in 2005 and 2012 (in MT of CO2 equivalent) – Biogenic and Anthropogenic, no adjustment for hydro conditions of PAG purchases - 2005 2012 Scope 1 Biogenic Scope 2 Scope 1 Biogenic Scope 2 Buildings and Other Facilities 8,723 0 1,819 7,016 0 1,155 Streetlights and Traffic Signals 689 534 Water Delivery Facilities 2 0 67 34 0 42 Wastewater Facilities 8,504 16,689 2,546 6,414 15,602 1,950 Vehicle Fleet 2,835 1 0 2,546 0 0 Power Generation Facilities 0 0 8,570 227 0 3,839 Solid Waste Facilities 6,846 5,853 29 4,336 3,827 19 Other Processes & Fugitive Emissions 3 9 26,912 22,543 13,720 20,582 19,429 7,539 Scope 1 and Scope 2 emissions are non-biogenic emissions and caused by human activity. Biogenic emissions are assumed to be net carbon neutral and not reported under GHG emission reporting protocols. Table B2 below shows the transformation of the Table B1 above by excluding biogenic emissions, and shows an emission reduction of 31%. Table B2: City Operations GHG Emission in 2005 and 2012 (in MT of CO2 equivalent) – Excludes Biogenic, not normalized for hydro conditions of PAG purchases - GHG Emissions comparison (Scope 1 & 2) 2005 2012 Water Delivery Facilities 69 76 Wastewater Facilities 11,049 8,364 Vehicle Fleet 2,835 2,546 Streetlights & Traffic Signals 689 534 Solid Waste Facilities 6,876 4,354 Power Generation Facilities 8,570 4,067 Buildings & Other Facilities 10,542 8,172 TOTAL 40,629 28,112 30.8% Table B2 does not include the effects of the purchase of PaloAltoGreen resources and the normalization of the vagaries of hydroelectric supply conditions. The Table B3 below accounts for these two effects and shows a 53% reduction in emissions. Attachment B: GHG Emissions of City Municipal Operations Page 2 of 3 Table B3: City Operations GHG Emission in 2005 and 2012 (in MT of CO2 equivalent) – Excludes Biogenic, normalized for hydro conditions and PAG purchases – GHG Emissions comparison (Scope 1 & 2) 2005 2012 Water Delivery Facilities 74 64 Wastewater Facilities 11,269 4,659 Vehicle Fleet 2,835 2,546 Streetlights & Traffic Signals 748 387 Solid Waste Facilities 6,878 4,349 Power Generation Facilities 9,308 3,008 Buildings & Other Facilities 10,698 4,643 TOTAL 41,811 19,655 53.0% Figure below graphically illustrates Table B3 and is a reproduction of Figure 1 from the body of the report. Attachment B: GHG Emissions of City Municipal Operations Page 3 of 3 The primary drivers for GHG emission reduction since 2005 are: Building and Other Facilities – Reduction in electricity and natural gas consumption, combined with greater level of renewable energy in regular electricity supply and purchase of renewable energy certificates from PaloAltoGreen. Power Generation Facilities – Elimination of transmission-related emissions due to long-term layoff of transmission assets, combined with greater level of renewable energy in regular electricity supply Solid Waste Facilities – Closure and capping of the landfill, resulting in less methane production and leakage. Higher collection in CY 2011 likely to be attributable to more rain during the year. Streetlights and Traffic Signals – Greater level of renewable energy in regular electricity supply Vehicle Fleet – Slight reduction in consumption of gasoline and diesel fuels, along with increased reliance on less carbon intensive CNG Wastewater Facilities – Combustion of biogenic methane from landfill in incinerator (replacing natural gas), combined with greater level of renewable energy in regular electricity supply and purchase of PaloAltoGreen RECs. Water Delivery Facilities – Greater level of renewable energy in regular electricity supply Attachment C: GHG Emissions of Palo Alto Community and City Municipal Operations Palo Alto Community & City Municipal Operations GHG Emission: Reduction of 22% since 2005 City Municipal Operations* & Palo Alto Community GHG Emissions Summary Excludes Biogenic Emissions**, All units in Metric Tons (MT) of CO2 equivalent Consumption Quantity 2005 Emissions in 2005 (MT of CO2e) Consumption Quantity 2012 Emissions in 2012 (MT of CO2e) Notes Scope 1 Emissions Natural Gas Use (in Therms)31,374,970 166,350 30,086,536 159,519 1 Natural Gas Distribution Leakage 4,717 4,718 2 Palo Alto Landfill Fugitive Emissions 6,811 4,336 3 Wastewater Process Emissions 8,504 6,414 4 Scope 2 Emissions -- Actual Total Electric Load in MWh 996,091 966,839 Hydro Supply (MWh)548,760 413,584 Renewables Supply (MWh)49,980 188,566 Brown Power Supply (MWh)397,352 158,427 364,689 145,404 5a Palo Alto Green Purchases (MWh)30,601 (12,201)75,805 (30,224)6 Scope 2 Emissions -- Weather Adjusted*** Total Electric Load 996,091 966,839 Hydro Supply (MWh)514,073 514,073 Renewables Supply (MWh)49,980 188,566 Brown Power Supply (MWh)432,039 172,257 264,200 105,339 5b Palo Alto Green Purchases (MWh)30,601 (12,201)75,805 (30,224)6 Scope 3 Emissions Commute into, from, and within City 371,870 335,390 7 Life Cycle Emissions From Annual Total Waste Placed in Landfills 69,491 24,823 32,434 12,725 8 Landfilling Recyclable meterial 54,838 20,701 8 Total (weather-adjusted, biogenic excluded)797,969 618,918 Emission Reduction 22% 1 2 3 4 5 6 7 8 * ** *** Study results from Fehr and Peer (03/19/2013) using Valley Transportation Authority regional transportation model based Vehicular Miles Travelled (VMT) and vehicular profiles - does not account for Palo Alto specific parameters related to greater penetration of alternate fuel vehicles, bicylce use, etc. Study results under review. Based on characteristics and tons of material landfilled: 2005 and 2012 figures. Table excludes biogenic emissions related to: Landfill gas flaring (3,827 MT) and WQCP sludge incineration (15,602 MT). Normalized to account for the vagaries of weather on hydroelectric supplies. Municipal emissions related to electricity and natural gas consumption included within utility load numbers; fleet vehicle emissions also assumed to be included in community wide commute related emissions estimates made by consultant. Notes Total Community supply of natural gas use/delivery. Calculated using total captured landfill gas, actual methane percentage, and assumed 75% capture rate. 2005 estimate has been revised to reflect current methodologies. Represents N2O emissions from biological treatment process and release of Nitrogen. a. Represents actual quantity of brown power related emission @879/lbs/MWh. b. Weather normalized (for hydro electric generation) quantity of brown power. Emissions saved due to purchase of PaloAltoGreen related Renewable Energy Certificates. Leakage from the natural gas distribution system Attachment D: Sustainability Initiatives of the City Page 1 of 25 Attachment D: Highlights of Sustainability Initiatives by City Municipal Operations This discussion is compiled in the order of the sections in the 2007 Climate Protection Plan (CPP). In each section, staff has evaluated actions taken to reduce City and Community GHG emissions. To the extent possible, staff has reviewed existing programs, described results and the potential actions or programs that will help reach future goals. The topics contained in this attachment are: I. Utilities Operations II. Sustainable Purchasing, IT and Administrative Practices III. City Fleet Operations IV. City Facilities Operations and Capital Projects; Public Works Projects V. Green Building VI. Zero Waste and Landfill Operations VII. Water Quality Control Plant (WQCP) Operations VIII. Education, Motivation, and Community participation Attachment F discusses the topic of Transportation and Sustainable Land Use, an important area that accounted for 54% of the Community GHG emissions in 2012. I. Utilities Operations Considerable progress has been made through the City of Palo Alto Utilities (CPAU) programs to reduce the carbon emissions associated with Community electricity and natural gas usage since 2005. Electric supply related emissions, which accounted for 160,000 MT in 2005, reduced by 53% to 75,000 MT in 2012. This reduced reliance on fossil fuel based electricity supply was primarily driven by: Increase in renewable electricity supply purchase, up from 5% (2005) to 21% (2012) Higher participation in the PaloAltoGreen program: 3% (2005) to 8% (2012) Greater levels of electric efficiency and conservation – estimated at 4.4% since 2005 Figure D-1 below illustrates the electricity supply sources for the base year (2005) and 2012 normalized to average hydro conditions1. 1 Hydro supply varies widely each year, but on average supply approximately 50% of the electricity needs. For comparative purposes and to measure progress towards meeting long term GHG reduction goals without the impact of varying hydro conditions, average year hydro supplies are assumed. Attachment D: Sustainability Initiatives of the City Page 2 of 25 Figure D-1: Comparative Electricity Supply Sources: 2005 & 2012 (normalized to average hydro conditions) As a result of Council’s adoption of the Carbon Neutral electric supply plan in March 2013, all electric supply in 2013 would be sourced from large hydro and other renewable resources making the electric portfolio emissions zero2. Natural gas supply related GHG emissions, on the other hand, have remained relatively flat since 2005, with efficiency and conservation programs and reduced customer loads accounting for a 4% reduction in carbon emissions, down from 166,000 MT in 2005 to 160,000 MT in 2012. Investigations are underway to determine if renewable biogas supplies could be acquired to meet all or part of the Community’s natural gas demand. Energy Efficiency and Conservations in the Community Since 2005, CPAU’s efficiency and conservation programs for the community have contributed to considerable customer usage and bill reductions, along with the associated GHG emissions reduction. The following Figures D-2 and D-3 illustrate the impact of energy efficiency on the projected electric and gas sales, respectively. 2 Renewable Energy Certificates (RECs) would be purchased to neutralize the GHG emissions from the market power resources. Attachment D: Sustainability Initiatives of the City Page 3 of 25 Figure D-2: Impact of Energy Efficiency on Electric Sales Figure D-3: Impact of Energy Efficiency on Gas Sales In addition to CPAU efficiency and conservation programs3, state and federal energy and water efficiency appliance and equipment standards help residents reduce energy 3 CPAU’s efficiency and conservation program related savings are computed based on specific measurement criteria mandated by state law. This tends to undercount actual savings and does not account for improved appliance and equipment efficiency standards. Improved building codes and appliance efficiency standards are included in the sales forecasts. Attachment D: Sustainability Initiatives of the City Page 4 of 25 consumption further as illustrated below. Figure D-4 shows that per capita residential electricity and natural gas consumption has declined by 8% since 2007 and water consumption is down 17%. The resulting customer bill reduction is estimated at approximately 12% or $240/per year on average for a three-person household or close to $5 million per year for the entire Community. While these are macro level estimates, it does indicate a positive trend in consumption reduction per capita. Figure D-4: Comparative Residential Per Capita Utility Consumption Declining CPAU Energy Efficiency Program Achievements State and Federal agencies continue to tighten appliance efficiency standards and code requirements leading to additional energy savings for the community. These savings are in the baseline as shown in the per capital consumption, and cannot be counted by CPAU to meet Council established gas and electric long-term energy efficiency goals. CPAU continues to aggressively pursue those goals and expects to achieve an additional reduction of 4.8% of electricity usage and 2.8% of natural gas usage by 2023. CPAU’s portfolio of Demand Side Management (DSM) programs for residential and commercial customers include local photovoltaic programs, energy and water efficiency, as well as conservation. During FY 2012, a wide variety of programs were available to Attachment D: Sustainability Initiatives of the City Page 5 of 25 customers and a significant level of savings was achieved. Some of the projects profiled below are one-time achievements and not easily replicable. One industrial customer completed a very significant project resulting in 5.8 million kilowatt hours of annual savings. This data center efficiency project, including lighting controls, use of outside air and economizers for cooling, and the use of variable speed drives on cooling equipment, netted this customer efficiency rebate of $583,000 during the year. A major hospital replaced its laboratory sterilizer and cart washer equipment, resulting in an annual savings of 14,000 hundred cubic feet (CCF). CPAU provided a $50,000 rebate for making this process change. An upgrade of this magnitude is typically made only every 50 to 100 years at hospitals, so the significance of the long-term improvement to the community cannot be overstated. Home Energy Reports comparing residents’ energy use with neighbors delivered efficiency results of almost one million kilowatt hours and close to 111,000 therms of savings. These savings account for 24% of the total natural gas DSM program achievements. Promotion and education on efficient and innovative technologies was greatly expanded during the year. Installation of the demonstration EcoHome project highlighted an increase in educational programs. The EcoHome, which displays and promotes sustainable construction and appliances, provided valuable information to over 620 residents in 28 different tours. Other workshops and outreach events for water conservation, photovoltaic, solar water heating and energy efficiency trained well over 1,500 residents on how to reduce their carbon footprints. A wide variety of new marketing and promotion was used during the year to further promote these activities. In addition, the water efficiency and conservation programs have achieved more than 1.5% reduction in water consumption since 2005, but these savings have minimal impact on the City’s carbon footprint. Some of the specific DSM programs include: direct installation of efficiency measures for low income customers, rebates for installation of efficient appliances and equipment, education programs, residential energy use audits, home energy reports, commercial customer programs by end use and type of business class, a green building construction program, and many others. CPAU continues to review and enhance its programs for all members of the Community, whether low income or a major international corporation. The FY 2012 DSM Program Report for FY 2012 is at: http://www.cityofpaloalto.org/civica/filebank/blobdload.asp?BlobID=29871. Attachment D: Sustainability Initiatives of the City Page 6 of 25 Utility Distribution System Operations CPAU also continues to minimize the impact of distribution operations on the environment. Such initiatives include: Replacing Street Lights with LED Fixtures Palo Alto’s 6,300 street lights consume 0.4% of the community’s electrical loads and cost $410,000 to maintain each year. Over the past 3 years, with Federal grants and City funds, the City has invested $1.3 million to replace approximately half of the lights with new LED based street lighting which has a lower energy consumption, reduced maintenance cost, and a higher illumination level. This investment is expected to reduce annual maintenance cost by 30% and annual energy consumption by 60%, resulting in a simple payback of 8 years. Another 2,300 streetlights are projected to be replaced by 2014. The remaining 15% of the streetlights which are mostly decorative or special type lighting is expected to be replaced by 2015. Control and Management of Sulfur-hexafluoride (SF6) Equipment and Replacement Sulfur-hexafluoride is a high-potent GHG. Due to its characteristics as a good electrical insulator, SF6 gas based electrical equipment gained popularity three decades ago. The City purchased several of these devices for substation and distribution system installation. Since the impact of this gas on the climate was identified, CPAU has stopped purchasing them, has maintained strict protocols to ensure the gas does not leak from existing equipment, and has begun replacing them with more benign equipment. Upgrade of Electric Distribution Voltage Over the past few decades, CPAU has been converting the voltage of the distribution system from 4 kV to 12 kV to reduce distribution line losses, reduce the amount of spare equipment purchased and stored for emergencies, and reduce maintenance cost. Customers Connect with Advanced Meters A 300-home pilot program called “CustomerConnect” is being launched this summer with advanced electric, gas and water meters which will enable customers to have access to hourly utility consumption data and analytical tools to assist with better utilization of utility services. The objective of the program is to gauge interest and applicability of this technology within Palo Alto and to observe how residents might reduce energy usage through such feedback. For further information, see: www.cityofpaloalto.org/ULTcustomerconnect Attachment D: Sustainability Initiatives of the City Page 7 of 25 Purchase of Battery Powered Bucket Truck Lifts CPAU is exploring the purchase of two bucket trucks that will have battery- powered bucket lifts to eliminate the need for the engine to idle while construction is in progress. This will enhance safety, and reduce noise pollution and GHG emissions. Emerging Technology Demonstration In 2012, CPAU launched a program to open up the utility infrastructure as a ‘test bed’ for innovative technologies to demonstrate and prove their value – another way the City is helping to meet the challenge of climate change. Since its launch, a number of technologies are under evaluation. See: www.cityofpaloalto.org/UTLinnovation. Utilities Plans for the Coming Years (2013 to 2020) CPAU plans to continue its programs to reduce GHG emissions for the City and Community, and has many plans in place including the following: Continue to aggressively pursue energy efficiency and conservation opportunities, as well as support the Planning and Community Development Department in encouraging green buildings and permitting processes. These programs are expected to reduce electricity usage by 4.8% and natural gas usage by 2.8% by 2023. Encourage local solar electric or photovoltaic (PV) resource investments through rebates and a guaranteed energy buy-back program in the Palo Alto CLEAN program. The PaloAltoGreen program also continues to support local PV resources by buying PV Renewable Energy Credits (RECs). In fact, for 2013 the PaloAltoGreen program is supplied entirely by solar PV RECs from California. (In previous years the supply had been 97.5% wind RECs from across the western U.S. and 2.5% solar RECs from California.) Implement renewable resource procurement to meet Carbon Neutral goals for 2013 and the City’s RPS goal of at least 33% of sales coming from renewable energy sources by 2015. Transform the PaloAltoGreen program as the Carbon Neutral electric supply plan is implemented. Implement Residential Electric Vehicle (EV) Time-Of-Use rate for a pilot program to encourage late night and early morning charging at single family homes. Charging EVs during peak use times could impact local distribution transformers and require expensive upgrades. Charging EVs at night and in the early morning reduces the cost to purchase electricity as well as the probability of having to Attachment D: Sustainability Initiatives of the City Page 8 of 25 upgrade local transformers. Using EVs instead of internal combustion engines for vehicles will also reduce Community GHG emissions. Based on California Energy Commission (CEC) projections, Palo Alto may have 3,000 to 10,000 residential and commuter EVs charging in the City by 2020, which would reduce Community GHG emissions by 1.5% to 5% by 2020. However, EVs are expected to increase Community electrical energy load by 1% to 2%. Implement the 300-home Residential CustomerConnect pilot to provide hourly energy and water usage data to participating customers. This will be accomplished by installing advanced meters and web based customer information portals with analytical tools to help conserve energy and water supplies. CPAU plans to undertake a similar Commercial Customer engagement pilot in the 2014-2015 period. Evaluate the implementation of advanced metering infrastructure throughout the city based on the results of the pilot projects. Evaluate the use and benefits of Distribution Automation equipment to improve electric system operating efficiency, improve service reliability, and increase energy efficiency. II. Sustainable Purchasing, IT & Administrative Practices Sustainable Purchasing Products and services acquired by the City will have an environmental impact during their manufacture, distribution, use, and disposal. Incorporating environmental performance criteria into procurement decisions can have a significant impact on the City’s carbon footprint, as well as supporting other sustainability policies and programs such as Zero Waste, green building, and pollution prevention. The City’s purchase of environmentally preferable products and services, in conjunction with the environmental purchasing efforts of other Bay Area or State Public Agencies, has impacts beyond City operations. The City has the potential to stimulate market demand and further expand access to these products and services. Many purchases that are environmentally preferable are also fiscally preferable because of less material use (e.g., paper when copiers and printers are set to duplex), reduced maintenance (e.g., structural pest control which relies on long-lasting structural repairs instead of expensive automatic monthly spraying or other chemical control), and direct costs, (e.g., remanufactured toner cartridges, which when specified correctly cost approximately 30-60% less per copy than new cartridges). Other cost savings can be seen by reduced-risk products that also decrease potential harm to users and to the environment, and reduced disposal and end-of-life costs. Attachment D: Sustainability Initiatives of the City Page 9 of 25 The CPP authorized the implementation of a green purchasing program in 2007. Since that time the City has adopted a Green Purchasing Policy which supports existing environmental policies and Council direction to reduce GHG, pesticides, mercury and achieve Zero Waste and pollution prevention goals. The following products and services have been purchased or discontinued with green purchasing criteria: Copiers and printers ordered by the City’s Information Technology Department (IT) with duplex capability, preset to provide that function before they are deployed for use. Printers with a duplex function are replacing older models that are phased out of use. Through these efforts an initial assessment in 2010 (based on 2009 use) indicated a 15% reduction in paper use and annual savings of approximately $7,000 in paper costs. This number has not yet been revised to reflect more recent paper purchases. EPEAT Gold™ standard computer and monitor purchases required by IT. EPEAT criteria reflect several categories of environmental attributes that cover the full lifecycle of electronic products including the reduction or elimination of environmentally sensitive materials, material selection, design for end of life, energy conservation, corporate performance and packaging. Low-mercury fluorescent lighting Discontinued use of hand soaps containing triclosan–an anti-bacterial product associated with water quality and potential human health issues Discontinued use of spray insecticides and poison rodenticides. Structural pest control requires the rigorous EcoWise Certification (Palo Alto was the first to require this certification) and additional requirements for local reporting and bee protection. . Use of locally-sourced mulches, OMRI certified organic fertilizers and other waste reducing measures mentioned in the Bay-Friendly landscaping standards in landscape maintenance contracts. GreenSeal™ Certified products for use by the City’s custodial contractor. These products place an emphasis on reduced-toxicity and higher recycled content (these same standards for City staff use will be explored in the coming months). Recycled-content paper and vegetable-based inks. Out-sourced printing services must require increased amount of recycled-content paper and vegetable-based inks. All utility inserts are now printed on 100% post-consumer content paper. Discontinued purchase of expanded foam food ware and plastic bags by staff or for use at City-sponsored events. Attachment D: Sustainability Initiatives of the City Page 10 of 25 Drinking water station to replace the use of single use bottles at City events In select contracts, additional evaluation points are given to those companies that are Certified as a Bay Area Green Business Boilerplate language in Purchasing contract Terms and Conditions has been revised to require extended producer responsibility, disallow the use of expanded foam plastics as packaging material, and standards for energy and water efficiency and Zero Waste. Multiple life cycle costing workshops have been held by Utilities for key accounts and staff. Additional workshops are planned for the future as needed. The City of Palo Alto received the 2011 Green California Summit and Exposition Award for Leadership in Green Purchasing and is considered a regional leader on this front. In addition to the purchase of greener services and goods, green purchasing policies are now required to qualify grant funding from some public agencies. The $250,000 grant the City received from CalRecycle for street maintenance required a green purchasing policy to qualify for funding. Although the City has made good strides on its green purchasing program, the very limited staff time available to run this program has not allowed for a detailed quantification of how these efforts contribute to the City’s GHG reduction, Zero Waste and other environmental goals. IT & Administrative Service Department Related Initiatives Effort to switch to laptops from desktops could assist with reducing energy consumption by more than 50% Increased the temperature setting in the server room, reducing the air- conditioning loads marginally Established duplex printing reducing single-sided printing Established Green IT Purchasing guidelines striving for the procurement of EPEAT Gold-rated IT equipment as well as the reduction of expanded plastics in packaging materials Deployed video conferencing capabilities in City facilities to support more virtual meetings allowing for less travel Attachment D: Sustainability Initiatives of the City Page 11 of 25 Make the Budget and Audited financial statements available electronically and reduce the amount of printed copies – over the past 5 years approximately 40% paper reduction. Planned Activities Supply Chain Plastics Reduction Project. This project led by Public Works- Watershed Protection is being done in partnership with the cities of Sunnyvale and San Jose. This effort requires the elimination of expanded foam plastics, e.g., Styrofoam from secondary and shipping packaging received by the City and broader efforts to minimize overall packaging (e.g., right-sized boxes) while continuing to ensure product protection. Vendor outreach is being conducted to ensure knowledge of the requirement as well as direct follow up with vendors who send unwanted materials in City shipments. Liquidated damages for disposal costs of plastics that are received may be assessed based on recently revised purchasing Terms and Conditions. The County of Santa Clara Waste Reduction and Recycling Commission acknowledged this effort as a model best management practice and is recommending its adoption in other Santa Clara County cities. Greening the purchase of Office Supplies: a Request for Proposal for a new office supply contract was released in 2012. A new contract is expected to be awarded in 2013 and is anticipated to yield both significant cost savings and improved environmental performance. It will include environmental benefit reporting capabilities and online ordering screening to encourage green purchases and discourage or prohibit those purchases that do not conform to the City’s purchasing and green purchasing requirements. Developing a “Cloud First” strategy for any new technology initiatives reducing energy costs for power and cooling in the Data Center. Establishing a Data Center Footprint Reduction initiative performing consolidation via virtualization and Cloud technologies III. City Fleet Operations Fleet Operations has strived to reduce the carbon foot print of the fleet. These efforts and accomplishments include: The Clean Bay Business award in 2010 for 10 consecutive years of environmental awareness with regard to Best Practices in preventing and containing vehicle pollutants from running into the storm drain-watershed system Attachment D: Sustainability Initiatives of the City Page 12 of 25 Maintaining city’s cooperatively owned back-up electric generators (COBUG), reducing the required testing run time down from 8 hours per week to 2 hours per month and saving natural gas usage Upgraded fueling island at the MSC incorporating an improved vapor recovery system to capture harmful gasoline vapor from escaping into the atmosphere when refueling vehicles Since 2007 began retrofitting all on road heavy duty diesel equipment with particulate filters to reduce the harmful diesel particulates generated (PM10 level) by diesel engine. Currently the entire heavy duty diesel powered fleet is has been retrofitted with particular filters. An adopted anti-idle policy for road equipment. The policy helps to reduces emissions, conserves fuel and reduces maintenance cost associated h with high idle time. The Utilities Department is considering the purchase of battery powered bucket truck lifts to eliminate truck idling during overhead line maintenance. Following all OEM recommended oil change interval to help reduce used oil and oil filters added to the waste stream. Also use several re-refined oil and antifreeze products in service inventory to further reduce additional waste products from entering the waste stream. By 2012 fleet maintenance has used over 3,000 gallons or re-refined oil products. A decrease in the number of miles travelled by City’s light duty vehicles from 1.85 million miles (2005) to 1.50 million in 2012- a 19% drop. The resulting reduction in transportation fuel use is illustrated below. Figure D5: Illustration of Fuel Use Pattern by Fleet - 2005 to 2012 05 06 07 08 09 10 11 12 Attachment D: Sustainability Initiatives of the City Page 13 of 25 Correspondingly the fuel related emissions have also dropped from 2,833 MT (2005) to 2,544 MT in 2012, a 13% reduction as shown in the table below. It is also estimated that the resulting fuel cost savings is $100,000 to $150,000 per year. Table D1: Fuel Use and Corresponding GHG Emission Trends: 2005 to 2012 2005 2006 2007 2008 2009 2010 2011 2012 Fuel Use Gasoline gal.149,861 156,142 152,153 146,398 131,096 137,850 146,595 147,849 Diesel gal.97,676 103,888 131,810 131,423 122,341 126,500 134,262 95,036 Biodiesel (B20)gal.46,667 27,261 0 0 0 0 0 0 CNG (City operations)gge.20,217 18,799 28,197 36,387 36,713 49,948 36,554 40,136 CNG (including PASCO, PAUSD)gge.44,273 60,928 80,491 88,088 86,786 87,635 85,872 91,125 Fleet Emissions Gasoline tons 1,316 1,371 1,336 1,285 1,151 1,210 1,287 1,298 Diesel tons 997 1,061 1,346 1,342 1,249 1,292 1,371 970 Biodiesel (B20)tons 381 223 0 0 0 0 0 0 CNG (City operations)tons 139 129 193 250 252 343 251 275 CNG (including PASCO, PAUSD)tons 304 418 552 604 595 601 589 625 Total 2,833 2,783 2,875 2,877 2,652 2,845 2,909 2,544 Planned Activity in the next 5 years Fleet Maintenance has committed to the use of CNG fueled vehicles and initiated the purchase of 17 new Honda CNG Civics. Electric Vehicle Zero emission units for specific use or as pool use replacement vehicles are being considered. Replacement vehicle specifications have focused fuel efficiency, low emissions, and modern build techniques. IV. City Facilities Operations & Capital Improvements, and Public Works Projects The Public Works department is committed to building, managing and operating City buildings and infrastructure in a sustainable manner. Sustainable practices are incorporated into major building renovations and everyday work practices. Sustainable work practices for cleaning maintenance include cleaning with environmentally friendly chemicals that are Green Seal Certified and using paper towels in restrooms that contain no chlorine and high in post-consumer content. Pest management also focuses on prevention and then using non-toxic pesticides. Sustainable work practices for building system maintenance include improvements in mechanical, electrical, and plumbing systems. Mechanical improvements include the use of cool roofing materials to meet Title 24 Building Energy Efficiency Standards, replacing air conditioning units with more energy efficient units (when existing units need replacement) and using Building Management Systems (BMS) to control and monitor and mechanical and electrical equipment (including lighting) via computers in some facilities. Electrical Attachment D: Sustainability Initiatives of the City Page 14 of 25 improvements include the use of high efficiency T8 lamps, some beginning implementation of LED parking lot lighting, the use of occupancy sensors for office lighting, and bi-level lighting for parking garages. Plumbing improvements include the use of low flow urinals and low flow toilets. Facilities recently purchased software that allows individual building managers to better track, analyze, and report on utility consumption and cost. Improved data reporting creates more accountability of energy usage. Data from the report now makes it easier to analyze and “spot” unusual usage spikes which may be a result of a water leak or faulty equipment. It also makes it simpler to track the outcome of conservation efforts. The application can also be utilized to determine which buildings are consistently using more energy than others of a similar size and usage and if needed, be used as a basis to propose a Capital Improvement Project for building system upgrades. The tool will facilitate the benchmarking of City buildings, by using EPA’s Portfolio Manager software, with similar buildings in the state and the nation. Recent building renovations include LEED certified buildings such as the Art Center, Downtown Library, and the soon to be completed Mitchell Park Library and Community Center. In addition to implementing sustainable practices, the overarching operational objective of Facilities is to maintain the building in good order for the comfort of the occupants and users, reduce the operating cost of maintaining the buildings, and extend the useful life of the buildings. In this regard, reducing the energy and water usage is an important consideration. The City Hall building upgrade project over the past 3 to 6 years has resulted in noticeable reduction in energy and water consumption. The project included the installing of new boilers, chiller fans, upgrading motors to premium efficiency, converting electric reheat coils to hot water reheat system, replacing the variable air volume (VAV) box and associated controls, installing a modern building management system, lighting sweep control systems, etc. It is estimated these upgrades have reduced City Hall electricity and natural gas bills by about $50,000 per year in 20124. With state grant funds, Facilities installed 5 electric vehicle chargers at 3 downtown garages. In 2012, 6,200 charging sessions took place at these chargers using 42,000 kWh of electricity at a cost of $4,500 to the City. The estimated GHG reduction as a result on such charging is estimated at 25 MT of CO2 equivalent. 4 Most of this equipment was replaced because they were near the end of their useful life. However, computing simple payback from a purely financial terms, the estimated payback was approximately 22 years. Attachment D: Sustainability Initiatives of the City Page 15 of 25 Public Works staff continues to promote measures that reduce storm water runoff and associated urban pollutants in order to improve the health of local creeks and San Francisco Bay. Using specially-designated revenue from the monthly storm drainage fees charged to developed properties throughout the City, the Storm Water Rebate Program offers financial incentives to residents and businesses for the installation of rain barrels, rainwater cisterns, permeable pavement, and green roofs. In addition, staff is implementing a “green street” project to address drainage system deficiencies in the Southgate neighborhood. The project includes the construction of bioretention planters at selected intersections that will intercept, infiltrate, and filter storm water runoff. The planters will be filled with native plants and permeable soil media that will treat and reduce runoff before it is discharged to the storm drain system. A number of existing concrete/asphalt walkways and crosswalks in the neighborhood will also be replaced with permeable interlocking concrete pavers to further reduce storm runoff. Park renovation projects managed by Public Works incorporate sustainable landscaping and turf elimination to conserve water whenever possible. The recently completed Cogswell Plaza project is estimated to save 240,000 gallons of water annually. The Eleanor Pardee Park project, which will be in construction in Summer 2013, is projected to save 360,000 gallons per year. V. Green Building The City’s Green Building Program was initiated in 2003 with requirements for Green Building checklists at early stages (Architectural Review) of an application to ensure an integrated approach for projects. In 2007, zoning ordinance changes outlined voluntary compliance criteria, followed in 2008 by a Green Building ordinance requiring Green Point Rated (Build It Green) compliance for residential projects and Leadership in Energy and Environmental Design (LEED) Silver level compliance for non-residential projects meeting certain size thresholds. The City of Palo Alto established itself as a national leader for its progressive, high-level program for a new generation of efficient buildings in Palo Alto, which are environmentally responsible and healthy places in which to live and work. Following the 2008 ordinance, City staff has recommended updates to the ordinance to Council each year, including addition of Home Energy Rating System (HERS) requirements for existing buildings,. In 2011, with the State’s adoption of the CalGreen building codes, the City’s local amendments to CalGreen required a higher level (Tier 2) compliance as mandatory (approximately LEED Silver level plus 15% additional energy efficiency for buildings beyond Title 24 requirements. In 2011, the City became the Attachment D: Sustainability Initiatives of the City Page 16 of 25 nation’s first city to pilot LEED for Neighborhoods as a voluntary program, intended to measure the success of a project in meeting community goals for walkability, access to transit, provision of mixed uses and services, and open space design, etc. Progress: 2007- 2011 • LEED “Silver” certification or equivalency was required in 2007 for new City buildings (e.g., the Downtown Library; Mitchell Park Library and Community Center and the Art Center) and new private buildings over 5,000 square feet; increased energy efficiency 15% beyond the state mandatory level, with rebates available through the Utilities department for even higher levels of savings; • Between 2007 and 2009, the program went from voluntary to mandatory and including both residential and commercial development; • Staff continues to work with Utilities staff on publicizing energy efficiency and solar rebate programs; • Sustainability Planner hired to implement program within Current Planning section; • New single-family residential construction required to have a minimum level of green building compliance (70 GPR points, with increasing points required for larger homes, etc.). California Energy Code (CalGreen) was adopted by reference in 2010, with local amendments for higher “tiered” levels of increased energy efficiency and thresholds. In FY 2011, two additional sustainability initiatives were implemented: o The first LEED-ND pilot program (LEED for Neighborhood Development) in the nation for assessing a development site’s ability to qualify as a sustainable neighborhood project, including features that reduce dependence on automobile use, increase walkability, and encourage healthy living. The program lasted one year. o The initiative to disclose energy use for existing buildings undergoing small renovation work to better understand the existing buildings’ current performance and areas where education, policy, and programs can be influential in reducing usage. The City has monitored its progress with annual updates to the codes through 2011, with another update scheduled for late 2013. The 2011 report noted a practice of Attachment D: Sustainability Initiatives of the City Page 17 of 25 annual tracking of the numbers and square footage of completed green building projects as well as the number of LEED and Green Point Rated certifications and point ratings achieved. In the last half of FY 12 and first quarter of FY13, consultants were used to manage the green building program while the sustainability planner vacancy went unfilled. In 2011, it was estimated that a little over 2,000 people are either working or living in green buildings throughout the City. Prior to the City’s ordinance, as few as six green building projects were on record throughout the City. At the end of FY 2011, over 240 had been completed or were under construction. Projects are using one of the following standards: LEAD, Build It Green GreenPoint Rated (GPR), or the California Green Building Code with locally adopted enhanced measures (CALGreen). FY 2012 Statistics Green Building permit applications processed: 887 (down from 961 in 2011) Green Building valuations subject to mandatory regulations: $543 million (up from $188 million in 2011) Green Building square feet subject to mandatory regulations: 1.342 million square feet (up from 1,250 million in 2011) Energy savings: 1,701 kBtu/yr (down from 3,399 kBtu/yr in 2011) Waste diversion from landfill: 18,328 tons (down from 28,177 tons) CO2 emissions reduction: 21.13 tons; only 10 projects reported CO2 emissions reduction estimates. This is down from 2,818 tons reduced in 2011 Water reduction estimates: 2.11 million gallons (2011) VI. Zero Waste and Landfill Operations The community’s Zero Waste goals documented in the 2007 Zero Waste Operational Plan set a mid-term target of achieving 77 percent diversion by 2011 and striving to reach Zero Waste (virtual elimination of waste to landfills) by 2021 have a significant impact on greenhouse gas emissions. The Climate Protection Plan considered three types of greenhouse gas emissions related to solid waste: 1. Fugitive emissions of landfill gas from the Palo Alto Landfill that are not captured and flared by the landfill gas control systems, thereby releasing methane into the atmosphere. These emissions are calendar year-based and are calculated using measured volumes of landfill gas flared and assuming a capture rate percentage for the control systems. This is considered Scope 1, anthropogenic emission and tracked in the GHG reporting protocol. 2. Life cycle emissions of landfill that are not captured and flared by landfill gas control systems, thereby releasing methane into the atmosphere. These Attachment D: Sustainability Initiatives of the City Page 18 of 25 emissions were calculated using an ICLEI’s Clean Air and Climate Protection (CACP) software. Inputs to the software are the total tons of Palo Alto solid waste landfilled and the amounts of paper products, food waste, plant debris, and wood/textiles in the landfilled waste. 3. Emissions from landfilling of recyclable materials, where failure to recycle the materials results in emissions from manufacturing using virgin materials that are greater than the emissions that would have resulted from recycling the materials. These emissions were calculated using the total tonnage of Palo Alto solid waste land-filled, the results of a 2006 Palo Alto Waste Composition Study, and US EPA emissions factors. This was not estimated this year, but also need further review. A total of 69,491 tons of Palo Alto solid waste was sent to landfills in 2005. The most recent landfill tonnage figures from the State of California indicate that the landfilled tonnage in 2011 totaled 32,434 tons, a decrease of 53 percent. The 2011 State of California annual report provides a Palo Alto per capita disposal rate, in pounds per person per day, which is equivalent to a diversion percentage of 78 percent. Palo Alto has exceeded its goal of 77 percent diversion by 2011. Preliminary numbers for 2012 suggest an increase from 2011, this is likely a result of an uptick in construction. A primary factor responsible overall long term decrease in landfilled waste from Palo Alto is the Zero Waste services that are included in the collection and processing contract with GreenWaste of Palo Alto. GreenWaste’s new services in July 2009 included: adding a program for collecting and composting commercial food waste and compostables, a shift to a single stream recycling program, and the processing of all construction and demolition debris boxes for and recycling. Other factors in the decrease include Palo Alto’s Construction and Demolition Debris Recycling and Reuse Ordinance, Zero Waste program outreach on recycling and waste prevention, and the economic downturn. The table D2 below provides a comparison between the solid waste-related greenhouse gas emissions estimates for 2005 and 2012. Table D2: Solid Waste Related GHG Emissions Emissions Source 2005 Emissions (MT) 2012 Emissions (MT) Difference (MT) Difference (percent) Landfill fugitive emissions during the year 6,811 4,3365 -2,475 -36% Life cycle fugitive emissions 24,823 12,7256 -12,098 -48% Landfilling recyclable materials 54,838 20,7027 -34,136 -62% 5 These emissions are related to methane generated in the landfill that was not captures and flared. Assume to be 33% of the collected landfill gas in accordance with LGOP protocol. 6 Is Scope 3 emission, included in Attachment C as community emission. Attachment D: Sustainability Initiatives of the City Page 19 of 25 The Palo Alto landfill fugitive emissions figure for 2010 was calculated using the volume of landfill gas captured by the landfill gas controls system and assuming a 75 percent capture rate. Life cycle fugitive emissions and landfilling of recyclable materials emissions for 2012 have been calculated using the ratio of waste landfilled in 2012 to waste landfilled in 2005. There are several factors that may introduce error into the estimates for life cycle fugitive and landfilling of recyclable materials. The 2005 estimates relied on a 2006 Waste Composition Study, and the method used for the 2012 estimate is based on a 2013 waste characterization study. However, it should be expected that the factors responsible for the decrease in Palo Alto’s landfilled waste tonnage, such as the Construction and Demolition program and the commercial compostables program, also affected the composition of the waste. Another factor to consider is that the 2005 baseline emissions for solid waste did not include calculating emissions from the PASCO collection fleet. The fuel used for GreenWaste collection vehicles includes CNG provided by the City at the MSC and purchased diesel fuel. The CNG fuel use is captured in another section. In 2012, GreenWaste used 165,817 gallons of diesel fuel in the collection vehicles. This report does not estimate greenhouse gas emissions from processing activities such as recycling recovery from garbage at the SMaRT Station in Sunnyvale, single stream recycling sorting at the GreenWaste MRF in San Jose, or the composting of the materials at Z-Best in Gilroy. Emissions from these activities are calculated by the host cities. VII. Water Quality Control Plant (WQCP) Operations Electricity and Natural Gas Use at the Plant The Palo Alto Regional Water Quality Control Plant (WQCP or plant) is the largest municipal energy consumer, accounting for approximately 80% electricity and natural gas used in City operations. Since 2005, the plant has implemented numerous steps to reduce its energy consumption and institutionalize sustainability policies in plant operations and maintenance, and when evaluating capital improvement projects. The figure below illustrates the natural gas usage pattern since 2005. The usage decline of more than 50% was due to the use of landfill gas for the plant incinerator since 2005 and the incinerator tuning in 2012. Lower natural gas usage has helped reduce the plant’s utility bill by an average of $200,000 per year compared to 2005. 7 Is Scope 3 emissions, included in Attachment C as community emission. Attachment D: Sustainability Initiatives of the City Page 20 of 25 *Year 2006 natural gas use is not depicted because the accuracy of the natural gas meter is in question for that year Figure D6: Natural Gas Usage at WQCP – Declined more than 50% since 2005 Outlined below is the description of natural gas usage related projects. Use of landfill gas from the Palo Alto Landfill as a substitute for natural gas in the incinerator afterburner (2005). Incinerator burner fine tuning (2011 and 2012): In 2011 and 2012, both incinerator 1 and 2 were fine tuned, resulting in lower natural gas consumption. It was found that the incinerators were operating rich, or burning more natural gas than needed. The air fuel mixture was adjusted and plant personnel were trained on the maintenance of the new set points. Significant amounts of natural gas are still used by the incinerator’s hearth burner, in addition to the natural gas that must augment the landfill gas in the afterburner. The electricity use has remained relatively flat since 2005 as illustrated in Figure D7 below. This is the net effect of reduced load due to various energy efficiency measures offset by increased load due to the installation of the more sustainable technology of UV based disinfection of treatment plant effluent. Attachment D: Sustainability Initiatives of the City Page 21 of 25 Figure D7: Electricity Usage at WQCP – Relatively Flat, but Greener Supplies WQCP’s electricity use declined substantially in 2009 as energy efficiency improvements were made to the activated sludge aeration basins and the trickling filter lift pumps. Electricity use increased in 2011 and 2012 due to increased recycled water pumping and the startup of the new ultraviolet light disinfection process that replaced chlorine disinfection in August 2010. A new aeration basin process control system was installed in 2012. This system is expected to further reduce energy consumption. Figure D8: Illustration of Components of Electricity Usage at WQCP in 2009 RWQCP Electricity Use Breakdown Aeration Basin Blowers, 23.4% Tower Lift Pumps, 15.5% RSP from (9/4/08), 10.9%Blend Tank Pumps, 4.3% Old RAS, 4.3% New RAS, 3.7% #4 Water, Injection, 3.4% Other, 7.2% Biofilter Fans, 6.4% DMF Lift Pumps, 6.4% LFG Compressor , 2.1% Incinerator Induction Fans, 6.4% Attachment D: Sustainability Initiatives of the City Page 22 of 25 Detailed description of the electricity consumption related projects are as follows: Aeration Basins Optimization and Dome Replacement: As discussed above, the aeration basin blowers comprise almost 25% of the RWQCP’s total electricity use. The RWQCP began using fine bubble diffusers and high speed single stage centrifugal blowers over ten years ago. This technology is much more efficient than previous equipment. Beginning in late 2008, the RWQCP began tracking blower use more carefully to avoid adding excess air to the aeration basins beyond necessary dissolved oxygen level process set-points. In summer 2009, all of the 19,000 dome diffusers in the aeration basins were replaced with new diffusers. The old diffusers had been in service for over ten years, and laboratory tests showed they had lost much of their efficiency. Typical daily electricity use by the blowers has decreased from nearly 13,000 kWh per day in 2008 to an average of 9,500 kWh per day in late 2010. The aeration basins have been the subject of most of AECOM’s work under contract to the RWQCP, and a final report containing a number of recommendations was submitted by AECOM in December 2009. The RWQCP made further improvements to the blower control equipment and software in early 2012. These improvements were expected to optimize the blower control sequence and further reduce electricity use. Unfortunately, no significant reduction has been seen to date, however we are hopeful that we will see reductions in the future. Trickling Filter Variable Frequency Drives: Trickling filter lift pumps (also called tower lift pumps) use about 15% of the plant’s electricity. In December 2009, RWQCP staff completed a new trickling filter lift pump control program. Additionally, two of the six lift pump controls were replaced with variable frequency drives (VFD). Use of the VFD controllers reduces the amount of water that is re- circulated and pumped over the trickling filters a second time. Although the improvements to this system are recent and more data needs to be collected, preliminary data appear to show that electricity use by the pumps has decreased by about 1,000 kWh/day; this equates to approximately 15% of the total trickling filter lift pump electricity use. The RWQCP is also considering options for making greater use of VFDs in the trickling filter lift pumps. Estimated Incremental Impact of Flow-rate on RWQCP Electricity Demand: The impact of influent flow-rate on RWQCP electricity usage was assessed using daily electricity demand and influent flow data for January 2009 through May 2010. The results suggest that at flows less than 26 million gallons per day (MGD), the flow- rate is not the primary factor impacting electricity usage. A superior correlation between influent flow and electrical demand was found when flows exceeded 27 MGD. It is recommended that 436 kWh/MG be used to estimate the impact on electrical demands due to an incremental increase in flow-rate. For every 1 MGD increase in influent flow, one may expect an increased demand of 436 kWh per day. Attachment D: Sustainability Initiatives of the City Page 23 of 25 The RWQCP is to confirm the accuracy of this factor following the installation of automated aeration controllers. Investment in Technology for Sustainable Operations and Cost Effectiveness The plant has made numerous technology upgrades since 2005 which has enabled more sustainable and reliable operations. These upgrades have also resulted in operational cost reduction. A classic example of such a project is the use of landfill gas to supplement natural gas in the plant’s incinerators. The one million dollar project brought online in 2005 had a payback period of 5 years. It is estimated that the use of landfill gas continues to save the plant an average of $200,000 a year in natural gas consumption. Additionally, the plant’s operations become more sustainable as the once discarded landfill gas is utilized. In 2008, the plant upgraded office lighting by installing 576 energy efficient lamps, ballasts, and motion sensors. The $36,000 project had a simple payback of 8 years, reduced annual overall energy use by approximately 46,500 kWh, and reduced the annual plant greenhouse gas emissions by 19 metric tons. In 2011 and 2012, the plant fine-tuned the incinerator burners to limit the quantity of natural gas consumed. This $12,400 project had a simple payback of 21 days. It is estimated that this project has decreased the average annual natural gas consumption by approx. $200,000 and has reduced annual greenhouse gas emissions by 1136 MT. GHG Emission of the Plant The plant generates human activity related Scope 1 and Scope 2 emissions and biogenic GHG emissions. However, the GHG reporting protocols exclude biogenic emissions from being reported to The Climate Registry (TCR). Table D3 below are the comparative emissions from the plant. Table D4, excludes biogenic emission and normalizes for yearly hydroelectricity variability and PaloAltoGreen purchases. This shows 2012 GHG emissions declined by 59% from the 2005 levels. Table D3: Plant Emission Comparison between 2005 and 2012 (Not normalized for hydro electric supply and excludes Palo AltoGreen Purchases) 2005 2012 Scope 1 Biogenic Scope 2 Scope 1 Biogenic Scope 2 Wastewater Facilities 8,504 16,689 2,546 6,414 15,602 1,950 Percentage reduction -25% -7% 23% Table D4: Plant Emission Comparison between 2005 and 2012 (normalized for hydro electric supply and includes Palo AltoGreen Purchases) GHG Emissions (Scope 1 & 2) 2005 2012 Wastewater Facilities 11,269 4,659 Percentage Reduction 59% Attachment D: City Departmental Level Initiatives Page 24 of 25 VIII. Education, Motivation, and Community Participation The City plays a pivotal role in facilitating sustainable community practices. Staff collaborates with many organizations and groups throughout the community on many levels and on many projects to promote sustainable behaviors. Much of this has already been discussed. The new governance structure to further enhance sustainability effort will greatly aid future efforts. The City’s activities on community level education and motivation include: Coordinating and facilitating Community Environmental Action Partnership (CEAP) efforts to work with a variety of different groups within Palo Alto to further sustainable business and living. Encouraging and facilitating volunteer action by staff through the Green Team. These activities include: design thinking exercises at IDEO, hand-on practice to upgrade irrigation controls, the design and execution of a demonstration garden, implementing electric demand response program at City Hall building, “green bag” lunch series on sustainable topics Encouraging community driven effort to explore participation in the ‘Cool Cities Challenge.’ Coordinating with the Palo Alto School District, Acterra, neighborhood associations and a variety of other agencies and groups to provide education on a variety of sustainability issues at events. Conducting community level classes and workshops on: Building a sustainable home: Leading tours and workshops through the EcoHome demonstration house. Organizing water conservation workshops on such topics as alternatives to lawn, care of trees in a low water use garden, irrigation systems and more during the period around Earth Day in April and Fix a Leak Week in March, as a part of the Summer Workshop Series and in the fall. Leading workshops on solar electric and solar water heating systems at least twice per year. Providing electric efficiency and sustainable home practices throughout the year, but particularly during the Summer Workshop Series. Attending many events at business sites to provide employees with information on CPAU’s efficiency programs and how to be sustainable. Providing the bi-monthly OPower Home Energy Reports that give residents a comparison of their home’s energy use with those of 100 homes in the vicinity. These homes are of similar size, use the same type of heating and are occupied to provide a greater ability for residents to see how their energy use compares. The paper and online reports provide a Attachment D: City Departmental Level Initiatives Page 25 of 25 variety of tips and tools for ways to reduce electric and natural gas consumption and participate in the Utilities’ Department rebates and programs. Delivering monthly newsletters to residents and businesses with a great variety of information on how to be more efficient and reduce GHG consumption. Working with the school district on a variety of in-class workshops on energy and water saving. Providing the PAUSD with an annual $50,000 grant to enhance curricula on sustainability issues. Also, coordinating with the parent-sponsored group Zilowatt to develop a curricula coordinated with science class requirements to provide hands-on and relevant information on solar electric systems and efficiency. Engaging with the business community through Facilities Managers’ Forum facilitated by Utilities about three times per year; The soon to be established Sustainability Executive Advisory Group to advise the City Manager will provide a another channel to seek input and support local businesses in their own efforts. Attachment E: Sustainability Policy and Organizational Structure Page 1 of 3 Attachment E: Sustainability Policy & Organizational Structure Shown below is the City’s Sustainability Policy approved by the Council in 2007. POLICY AND PROCEDURES 5-01/MGR First adopted in April, 2000 Revised June 18, 2007 CMR: 260:07 SUPPORT FOR SUSTAINABILITY POLICY STATEMENT It is the intent of the City of Palo Alto to be a sustainable community – one which meets its current needs without compromising the ability of future generations to meet their own needs. In adopting this policy, the City of Palo Alto accepts its responsibility, through its operations, programs and services to: Economy: Maintain a healthy, thriving and well-balanced economy comprising a blend of large and small business, which encourages the development of independent businesses and is resilient to the economic changes common to California’s economy Social Equity: Continuously improve the quality of life for all Palo Alto community members without adversely affecting others Environment: Enhance the quality of the air, water, land and other natural resources by minimizing human impacts on local, regional and global ecosystems through greater conservancy, reduced pollution, increased efficiency, and protection of native vegetation, fish, wildlife habitats and other ecosystems. In working toward these goals, the City will, when appropriate, align and partner with community groups, businesses, non-profits, and neighboring communities. NOTE: Questions and/or clarification of this policy should be directed to the City Manager’s Office. Attachment E: Sustainability Policy and Organizational Structure Page 2 of 3 Organizational Structure to Facilitate Sustainability Actions and to Achieve Goals The City Manager determined that the City’s many cross-departmental environmental sustainability activities requires a clear organizational structure to succeed. In preparation for the recruitment of the new position of Chief Sustainability Officer (CSO), roles and responsibilities for each part of the organization was established. Sustainability Board: Comprising Directors from key departments, will establish the vision and goals for the overall effort, approve the CSO’s work plan, and identify and approve resources to complete the work plan tasks. Sustainability Executive Advisory Group: To solicit input from outside the City, the City Manager will organize and lead such an ad hoc group, whose membership will include key executives from Palo Alto institutions, community leaders, and representatives from Stanford and large companies. The function of the group is to give advice and feedback to the City Manager, get input from the “real world”, forge and leverage international relationships/partnerships, build excitement, and model and motivate behavioral changes. Chief Sustainability Officer: The CSO will report to the City Manager and take direction from the Sustainability Board. A critical task of the CSO is to develop the long-term sustainability work plan and prioritize tasks for each fiscal year. The CSO will work with a larger group of individuals from many City departments to complete the tasks on the work plan. That larger group, the Sustainability Team, will organize itself into committees to implement the work plan as prioritized by the CSO. Participants in the Sustainability Team will be embedded in job descriptions and annual appraisals to ensure that team members understand that the sustainability work plan tasks are key City priorities. The CSO will also be responsible for community outreach on sustainability efforts and will act as the co-chair of community based Community Environmental Action Partnership (CEAP). Green Team: This is a longstanding individual employee initiative driven team with voluntary membership. The Green Team includes employees from many work groups and has historically been project-based with the goal to complete projects and a bias towards action. This group of engaged employees will be a valuable asset for the CSO to work with as they act as ambassadors to their own work groups and spread the word on sustainability throughout the City. Many Green Team members will also be on the Sustainability Team. The CSO will act as the liaison to the Green Team co-chairs and will convey information to and from the Sustainability Board. One of the key tasks for the CSO and the Sustainability Board, the Sustainability Team and the Green Team is to update the 2007 Climate Protection Plan. In addition, measuring performance with respect to the goals of the plan must be done on an annual basis. Attached is a line-diagram of the sustainability governance structure. Attachment E: Sustainability Policy and Organizational Structure Page 3 of 3 Attachment F: Transportation and Sustainable Land Use 1 Transportation and Sustainable Land Use Transportation and land use continues to represent the largest contributors to GHG emissions, with transportation related emissions accounting for more than 50% of Community emissions in 2012. The City’s policies are highly supportive of reducing vehicle use, particularly single-occupancy vehicle use, for commuting or other trips. The Comprehensive Plan, Zoning Ordinance, and Capital Improvements Program direct the City to develop projects and programs to facilitate pedestrian and transit-oriented development, safer and more convenient pedestrian and bicycle travel, particularly related to school routes, traffic calming for safety of drivers and other road users, and facilitation of greater use of Caltrain, buses, and shuttles. In general, every single-vehicle auto trip diverted to another mode reduces greenhouse gas emissions. The City has also encouraged and facilitated the use of low emission, including all-electric, vehicles. Staff is working on many programs to enable a reduction of such emissions, as described below. Short and Medium Term Goals from 2008-2012 Develop land use patterns that reduce travel-related emissions by supporting pedestrian, bicycle and transit use Reduce and/or offset community travel-related emissions by 5% Coordinate with Green Building efforts to ensure compatibility between built environment and sustainable land use initiatives. Reduce emissions by an additional 10% by 2015 Increase Caltrain and other transit use by 25% by 2015 Provide annual reporting of transit and TDM effectiveness Increase Electric Vehicle (EV) infrastructure How did we do on short and medium term actions? 1. Facilitate and enhance potential for mixed-use development. Several mixed use developments were approved through the entitlement process 2011-2013, or approved in previous years through planning entitlement process, but not yet completed the building permit process. Some of the mixed use projects of significance include: 2180 El Camino Real (College Terrace Center): Planned Community approved by Council with 30,000 square feet of office space, a small grocery store and other retail, and 8 below-market rate rental units. Construction anticipated in 2013. 3445 Alma Street (Alma Plaza): Planned Community including a grocery store and other retail space with 14 below-market rate rental housing units above the grocery store and 37 single-family homes immediately to the rear of the site. Attachment F: Transportation and Sustainable Land Use 2 Construction completed 2012 for commercial space and BMR housing units above. Market rate residential project construction commenced 2012. 1080 Channing Avenue (Edgewood Plaza): a grocery store, other retail space, and 10 single-family homes. Approved by Council; construction started in 2012. 102 University Circle: two stories of office and retail space, with four residential units on the third and fourth floors. Construction completed and occupied by 2011. A handful of smaller projects on El Camino Real include 2-3 stories of office/commercial space with one or two residential units above (4073 El Camino Real, 1845 El Camino Real) 2. Zone for Mixed Use and Higher Density Around Transit Stations The City has adopted Pedestrian-Transit Oriented Development (PTOD) zoning near the California Avenue station. Existing zoning allows for mixed use and higher density around the downtown transit station, though parking remains an obstacle to successful projects. Two mixed use PTOD projects noted above have been approved (and one constructed) in the California Avenue PTOD area. In 2012, the 195 Page Mill Road/2865 Park Boulevard mixed use project was approved by Council. The 102 University Circle project provides a mix of uses downtown, and high density housing near the downtown Caltrain station was approved (and construction is nearing completion) for 50 affordable housing units at 801 Alma Street. Another high density affordable housing project was approved and constructed at 488 W. Charleston Road, which is proximate to a future Bus Rapid Transit stop on El Camino Real. Finally, the Lytton Gateway project, which contains 50,000 square feet of office and retail space, is currently under construction directly across the street from the train station. 3. Reduce Parking Needs for New Development Several significant projects employed reductions in parking spaces allowed by the City’s zoning for projects that are proximate to transit, provide effective transportation demand management (TDM) measures, exhibit a mix of residential and commercial uses, or provide for affordable housing. Most of the projects noted above have utilized of one or more of those parking reductions. Staff has worked to increase use of existing garages through the City’s parking permit program, from 60% use to 80% use, and is working with a Downtown Parking Study Group to consider potential residential permit parking strategies. Staff is also evaluating the use of attendant parking and/or “stackers” to facilitate increased parking lot or garage capacity to minimize the space devoted to parking. Several projects have been approved for use of these stackers or “lifts” in the downtown, and two more projects are in process proposing the use of these lifts that can handle up to four parking spaces, where one space was previously feasible. Attachment F: Transportation and Sustainable Land Use 3 4. Require Transportation Demand Management (TDM) Programs Transportation Demand Management (TDM) programs have been proposed and approved in recent years for several projects, including 901 San Antonio, 2180 El Camino Real, 1601 California Avenue (Facebook, since departed), 3401 Hillview (VMWare) and the pending 355 Alma Street (Lytton Gateway). TDM programs have included such measures as transit passes (such as Caltrain “Go-Pass”) for building occupants, Zip Cars or similar rentals, and/or vanpool or carpool priority, etc. TDM programs are required whenever parking reductions are requested or where required as environmental mitigation. The programs typically specify performance objectives, and monitoring information is provided to the City at 2 years and 5 years after project occupancy. Recently, the Council has authorized staff to move forward with a City Hall TDM program, to reduce the number of employees that are driving to work. The overall goal is to “free-up” 50-100 spaces in the City Hall garage through this program by providing incentives for employees to walk, bike or take transit to work. 5. Develop Monitoring Programs for Transit Use and TDM Effectiveness The City is completing its database regarding TDM programs in order to gain better information about the types of programs used and their effectiveness, specifically the degree to which drive-alone travel is reduced. Baseline information is typically required of an applicant, and monitoring reports are to be submitted at regular intervals. To date, the projects with adopted programs either have not existed long enough to assess effectiveness or have not been constructed so measures are not yet implemented. One exception was the Facebook site (Facebook as since moved), where ride-alone travel by employees was reduced to about 60% through a variety of company-sponsored bus shuttles, provision of GoPasses to staff, bike sharing, and TDM information measures. 6. Citywide Transportation Survey The Transportation Division recently released a first of its kind, city-wide transportation survey. The goal of this survey is to determine the mode share of various forms of transportation. This survey has been sent out to those who live, work or visits the City of Palo Alto. Based on information gained from this survey, the City will be able to better plan for transportation improvements, and create the programs and incentives necessary to support alternative forms of transportation. City staff will also be taking this survey, in order to develop a City Hall TDM program as identified above. 7. Downtown Studies: The City has recently embarked on the first phase Downtown Development Cap Study. One primary aspect of this study is quantifying the impact of automobile traffic has on the Downtown area, and projecting conditions into the future. One of the primary goals of the second phase of this study, will to be to create policies which help to reduce automobile traffic in the Downtown area by encouraging Attachment F: Transportation and Sustainable Land Use 4 transit use and other alternative forms of transportation. 8. Develop Comprehensive Plan Programs to Support Increased Density near Transit. The City’s Comprehensive Plan currently identifies areas around the City’s two transit station as appropriate for higher density and mixed use development. A Comprehensive Plan update will look at additional land use and transportation implementation strategies for increased housing density. The California Avenue- Ventura/Fry’s Concept Plan is underway and will address potential density options in that pedestrian and transit-oriented area. The City’s Housing Element is in the final stages of State level review, and focuses on housing options near transit stations or corridors. In addition, staff has been engaged in the Sustainable Community Strategy with the Association of Bay Area Government (ABAG), which focuses on developing linking land use and transit policy consistent with the goals of SB375. 9. Develop Plans for Transportation Improvements around California Avenue Caltrain Station The City has developed a concept for streetscape improvements along California Avenue to provide for a “complete street” approach benefiting all modes of travel, enhancing pedestrian and bicycle safety, and enhancing the aesthetics of the streetscape. Plans are nearing the final design stages and work is expected to begin in Fall 2013. The City’s Bicycle and Pedestrian Transportation Plan designates Park Blvd., serving as a key connector to California Avenue and the train station, as a “bicycle boulevard” to be developed over the next two years with modifications to enhance bicycle use. The California Avenue-Ventura/Fry’s area concept plan will also address land use, transportation improvements for the surrounding area, though their implementation timeframe is uncertain. 10. Bicycle and Pedestrian Plan and Infrastructure a) Bicycle Plan and Programs: The City of Palo Alto is currently a Gold Level Bicycle Friendly City, and bicycle use comprises an estimated 7% of commute trips to and from the city (2009-2011 American Community Survey 3-Year Average Estimate, United States Census Bureau. The City Council is scheduled to adopt the updated Bicycle and Pedestrian Transportation Plan. This Plan is intended to enhance the use of bicycles for commuter, convenience, and recreational uses, with a goal of becoming a “Platinum” Bicycle Friendly Community.. The Plan objectives and other anticipated programs include: Increasing bike boulevard mileage from 18 to 22 miles. Increasing bike lane mileage from 38 miles to 41 miles Increasing Class I trails (separated bikeways) from 14 miles to 21 miles of facilities Initiating a bike share program, beginning in 2013, to provide 100 bikes distributed at five locations in Palo Alto; and Attachment F: Transportation and Sustainable Land Use 5 Doubling the number of bike parking “corrals” from the existing six downtown to approximately 12 in downtown and California Avenue areas in the coming two years. b) Safe Routes to School: On March 1, 2012, the City initiated an expansion of its highly successful Safe Routes to School program, thanks to a two year grant from the Vehicle Emission Reductions Based at Schools (VERBS) program of the Santa Clara County Valley Transportation Authority. This grant provides funding for a broad range of efforts to reduce auto congestion and increase greener school commute choices, including comprehensive Walk and Roll to School maps for every PAUSD school, updated and expanded bicycle safety education for students and parents, and school-level promotions of walking, biking, taking the bus/shuttle, and carpooling to/from school. Since 2005, there has been a dramatic growth in cycling at PAUSD secondary schools, a very different picture than in virtually any other city in the state or nation. As shown in the table below, nearly 40% of PAUSD high school students and 55% of middle school students were regularly biking to school in fall 2012. This growth in biking has outpaced the increase in student population by more than 20% at both levels compared to the baseline year for the Climate Protection Plan: PAUSD High Schools Student population Bikes % Biking Fall 2005 3450 580 16.8% Fall 2012 3790 1510 39.8% Increase 2005-12 +340 +930 +22.9 % PAUSD Middle Schools Student population Bikes % Biking Fall 2005 2420 830 34.5% Fall 2012 270 1501 55.4% Increase 2005-12 +290 +667 +20.9% Between April 2012 and March 2013, VERBS funded initiatives included the developing of Walk and Roll maps at 10 out of 17 PAUSD schools. These maps show suggested walking and biking routes to school, based on community input and updating safety signage and striping on these routes. This process also led to the identification of a list of recommended longer term improvements on school commute routes, to be implemented as funding becomes available. Other initiatives include expanded promotion of green ways to get to school in both fall and spring, and an online “Schoolpool” program now being piloted at four schools, which aims to reduce congestion near schools by encouraging more parents to carpool to school, or form bikepools or walkpools, thereby reducing the number of solo family vehicle trips to school each day. Attachment F: Transportation and Sustainable Land Use 6 In FY 2014, the VERBS grant will also fund the installation of automated bicycle and pedestrian counters near each school, which will allow the City to monitor seasonal trends in school commute choices. The program evaluation incorporated into the grant will include GHG reduction calculations for Palo Alto's Safe Routes to School program, based on a regional methodology now being developed by the Metropolitan Transportation Commission. 11. Transit Use and Enhancements The City sponsors and jointly funds the Crosstown Shuttle and Embarcadero Shuttle, providing transit service to students, seniors and others in areas not served by other public transportation. The number of riders on the City’s shuttles has decreased somewhat (from 137,825 riders in FY2011 to 118,455 riders in FY2012) over the past year, due to cuts in funding that resulted in the Crosstown shuttle being served on an hourly basis, rather than twice per hour. Use of Caltrain, however, has increased substantially over the past year and over the past five years, with ridership increasing from 4,132 boardings in 2007 to 4,796 boardings in 2010 to 5,501 boardings in 2011 (33% increase in 4 years and 15% increase in the past year. The ridership increase exceeds the Climate Protection Plan goal of 25% increase by 2015. 12. Electric Vehicle Infrastructure The City has taken steps to facilitate the implementation of infrastructure, particularly charging stations, for electric vehicles (EVs). In the past year, five charging stations have been installed in City garages. Right charging stations have been approved in conjunction with development proposals. This includes 4 charging stations at the Lytton Gateway project and 2 at the Edgewood Plaza project. In addition, the City is planning for 6 additional chargers at City facilities as follows: City Hall Garage (1) Cowper-Webster Garage (1) Bryant St Garage (1) Cal Avenue – West Garage (2) Cal Avenue – East Garage (1) 13. Traffic Calming Projects and Programs The City has recently embarked on the outreach, design or construction phases of several traffic calming projects and programs. The goal of these projects are to continue to facilitate efficient automobile traffic, while making the roads safer for bicycles and pedestrians as well. The areas where these improvements have recently been focused are Charleston/Arastradero, College Terrace, Greer and Louis Roads and California Avenue. Attachment F: Transportation and Sustainable Land Use 7 Long Term Goals (2012-2020) • Reduce emissions by an additional 10% by 2020 • Increase Caltrain and other transit use by an additional 50% by 2020 What is planned for Long Term Actions? 1. Evaluate Pedestrian and Transit Oriented Development Zoning Intensity, Including Along El Camino Real. The City’s Comprehensive Plan update will include a recommendation for study of the south El Camino Real Corridor, and the Housing Element will focus on new housing development and offer recommendations for increased density near transit stations and along El Camino Real. Staff also expects recommendations about appropriate locations for some increase in height to accommodate housing, and for parking solutions for greater intensity in development downtown. 2. Develop a Vision for the Intermodal Transit Center & Surrounding Area. The City will soon embark on a community input and planning process reacted to the Palo Alto Intermodal Transit Center site and surrounding area to ensure a) connectivity between downtown and the Stanford Shopping Center and beyond, b) improve transit flow through the Transit Center and to University Avenue and El Camino Real, and c) create a diversity of land uses on the site. The project will soon be entering in the community input and planning phase. 3. Implement Grand Boulevard Improvement Strategies for El Camino Real In 2011, the City of Palo Alto implemented an initial Grand Boulevard Initiative project at the Stanford Avenue and El Camino Real intersection to improve the aesthetics of the intersection and to enhance safety for bicyclists and pedestrians, many of whom are students crossing to and from school. The California Avenue Streetscape Improvements Project will also provide an upgraded link from El Camino to the Caltrain station. The City staff is coordinating with adjacent cities in a study of the boulevard and necessary infrastructure to serve future development. The City’s Rail Corridor Study draft suggests improved connectivity at several points across El Camino Real and identifies the El Camino Way area as a potential neighborhood center node for future detailed analysis. 4. California Environmental Quality Act (CEQA): The City’s plans and programs for El Camino Real, the Rail Corridor, Downtown, California Avenue, and the Bicycle and Pedestrian Transportation Plan will help to gain certification of the City’s Climate Protection Plan in order to streamline preparation of CEQA documents with respect to cumulative Green House Gases. Infill development around transit as part of adopted plans will also help minimize traffic and air quality analyses otherwise needed for CEQA compliance. Attachment F: Transportation and Sustainable Land Use 8 Transportation Related Community Emissions - Methodology & Summary of Findings The City commissioned a short study by consulting firm Fehr and Peer to provide an assessment of transportation related community emissions. This high level assessment used the Santa Clara Valley Transportation Authority (VTA) regional Travel Demand Forecasting (TDF) model for developing long-range citywide daily vehicle miles traveled (VMT) estimates for streets and highways in the greater Palo Alto area. The VTA TDF model includes a 2005 base year, and a 2035 future year (with 5 year incremental planning years) that reflects future planned growth in San Francisco Bay Area and nearby counties. The model assigns traffic volumes for a typical weekday during the morning (AM) peak period, midday, evening (PM) peak period, and late night, as well as the morning one-hour peak and evening one-hour peak. The regional transportation network coverage (roadway and transit network) captures regional travel patterns and behavior to be accounted for in the focused study area of Palo Alto, which is more important with the recent legislative requirements associated with GHG quantification and impacts. VTA staff provided daily VMT estimates for the planning years of 2005, 2010, and 2015. A review of the traffic analysis zones (TAZs) for the City of Palo Alto was undertaken to determine which TAZs should be included in the calculation of VMT and CO2 emissions. TAZs within the City’s boundary were included along with some TAZs within the Stanford University Boundary where the City of Palo Alto controls land use decisions (i.e. Stanford Shopping Center and Stanford Medical Center). The Palo Alto specific VMT estimates were primarily a function of service population defined by residents plus employees within City limit. In the absence of reliable employment number, a constant 90,000 was used for the assessment. The assessment did not consider Palo Alto specific data related to bicycle use, alternate transportation modes, or vehicles profiles. Attachment F: Transportation and Sustainable Land Use 9 Based on the above described assumptions and methodology, the study found: VMT per service population decrease from 1990 to 2012 CO2 emissions per service population decrease from 1990 to 2005 and 2012 The combination of reduced VMT per service population, improved vehicle technology, and improved fuel efficiency are all key factors in the decreased CO2 emissions per mile. The Community CO2 emissions reduced by 13.6% from 371,870 MT in 2005 to 321,200 MT in 2012. It also found 2005 emissions were below those of 1990 levels. Role of Electric Vehicles in Reducing GHG Emissions With a Carbon Neutral electric supply, Electric Vehicles(EV) provide an avenue for the Palo Alto Community to reduce its carbon footprint with vehicular fuel switching. The City took a first step in adopting an Electric Vehicle Infrastructure Policy in December 2011. The policy encouraged night time EV charging and passing on the lower cost of electric supply through lower time-of-use electric rates to EV owners who charge at night. The policy also called for the City to facilitate community adoption of this technology. Responding to community interest, City is the process of exploring a pilot program designed to facilitate home owners in residential neighborhoods, with adequate street parking, to install, own, and maintain EV chargers or 240 volt outlet on the publicly owned planting strip across their homes. Staff is also working with Xatori, a local start-up company, that has the technology to enroll EV owners and provides them helpful information related to their vehicle charging patterns and provide useful information to the electric utility. Palo Alto Utilities plans to use this information to inform participating EV owners when ‘Demand Response’ events occur and to urge them not to charge their cars when the electrical grid is under distress on hot summer days. City is also working with SAP Labs and other industry partners to make useful information available to potential EV owners at EV dealerships via a mobile application to enhance customer experience. With vehicular emissions making up 54% of community emissions in 2012, EVs are likely to play a large role in further reducing community GHG emissions. City of Palo Alto (ID # 3617) City Council Staff Report Report Type: Special Orders of the Day Meeting Date: 4/15/2013 City of Palo Alto Page 1 Summary Title: Community Star Award - Environmental Volunteers Title: Proclamations Expressing Appreciation to Terry Godfrey, Rachel Samoff, Rob Steele, and Environmental Volunteers for Outstanding Public Service From: City Manager Lead Department: Community Services Attached are four proclamations expressing appreciation for outstanding public service. Attachments: Attachment A: Terry Godfrey (DOCX) Attachment B: Rachel Samoff (DOCX) Attachment C: Rob Steele (DOCX) Attachment D: Environmental Volunteers (DOCX) CITY OF PALO ALTO PROCLAMATION Expressing Appreciation to Terry Godfrey for Outstanding Public Service WHEREAS, Terry Godfrey, with her family, has been a resident of Palo Alto for 14 years; and WHEREAS, Terry has shown great commitment and leadership for youth well-being in Palo Alto as founder and a leader of Project Safety Net whose mission is to develop and implement an effective, comprehensive, community-based mental health plan for overall youth well-being in Palo Alto; and WHEREAS, Terry is the current Co-President and CEO of Partners in Education (PIE), an organization committed to educational excellence for every student in the Palo Alto Unified School District (PAUSD); and WHEREAS, Terry as past Chair of the Palo Alto PTA, successfully promoted the 41 Developmental Assets by building a common focus on social/emotional issues; and WHEREAS, Terry is the Chair of the Palo Alto Developmental Assets Initiative whose goal is for 2/3 of youth in Palo Alto to have at least 21 assets and none to have less than 10 assets by 2021; and, to use the Developmental Assets to achieve transformation in Palo Alto through education, communication and inspiration; and WHEREAS, Terry Godfrey works closely with PAUSD to promote stress reduction, optimal school nutrition, fitness, sustainable schools, emergency preparation and school commute safety; and WHEREAS, Terry works tirelessly to improve communication and connectedness around inclusion of students who receive special education or disability services within their school communities; and WHEREAS, we thank Terry Godfrey for her passion for elevating the youth voice in the Palo Alto community by building authentic relationships between adults and teens and for her consistent and unwavering support of youth and teen programs, services and special events. NOW, THEREFORE, I, GREGORY SCHARFF, Mayor of the City of Palo Alto, on behalf of the City Council do hereby proclaim Terry Godfrey as a Community Star Award recipient for providing outstanding public service and records its appreciation of Terry Godfrey to the City of Palo Alto. Presented: April 15, 2013 ______________________________ H. Gregory Scharff Mayor CITY OF PALO ALTO PROCLAMATION Expressing Appreciation to Rachel Samoff for Outstanding Public Service WHEREAS, Rachel Samoff has dedicated her career to early childhood advocacy and public policy as well as teaching children, educating teachers, designing curricula, and directing child care facilities in the United States and several countries in Africa; and WHEREAS, Rachel is the founder and executive director of The Children’s Pre-School, located at the Cubberley Community Center, a center accredited by the National Association for the Education of Young Children which indicates a national standard of excellence in early childhood education; and WHEREAS, Rachel has served as a member of the City’s Advisory Committee on Early Care and Education for over 20 years, and served as chair for several years; and WHEREAS, Rachel Samoff is the unofficial historian of child care in Palo Alto; and WHEREAS, Rachel served on the City’s Family Resources Program Implementation Team, Steering Committee and Advisory Board; and WHEREAS, Rachel has served since 2008 as a commissioner for First Five Santa Clara County, part of a statewide organization to fund and support local health and education programs for young children ages 0-5; and WHEREAS, Rachel Samoff served on the Cubberley Community Advisory Committee in 2012-13 which sought to advise the City and Palo Alto Unified School District on future plans for the Cubberley Campus; and WHEREAS, Rachel Samoff is being honored by the City during the Week of the Young Child, an annual celebration sponsored by the National Association for the Education of Young Children. NOW, THEREFORE, I, GREGORY SCHARFF, Mayor of the City of Palo Alto, on behalf of the City Council do hereby proclaim Rachel Samoff as a Community Star Award recipient for providing outstanding public service and records its appreciation of Rachel Samoff to the City of Palo Alto. Presented: April 15, 2013 ______________________________ H. Gregory Scharff Mayor CITY OF PALO ALTO PROCLAMATION Expressing Appreciation to the Robert Steele for Outstanding Public Service WHEREAS, Robert Steele has been an employee of the City of Palo Alto since April 28, 1985; and WHEREAS, Robert Steele has volunteered to head the Palo Alto Holiday Toy Drive since 1999; and WHEREAS, in this duty Robert Steele collected and distributing annually some 2,200 toys and other items each year to organizations serving the needy for a total of 28,600 items over 13 years; and WHEREAS the toy drive every year served needy organizations through San Mateo and Santa Clara Counties including the following organizations and its constituents: o St Justin Parish Community - serves 850 families and 1900 children o St Vincent de Paul - serves 4000 people o Palo Alto Housing - has 3 sites and serves approximately 75 - 80 children o Boys and Girls Club - serves approximately 300 children o Inn-vision Shelter Network - serves 300 children o Mayview Clinic - serves 150 children o EPA Teen Home - serves 12 young adults & 10 children o Ravenswood Child Development Center - serves 180 children o EPA Police Department - collects toys to distribute throughout East Palo Alto WHEREAS, many of the organizations above depend on the Palo Alto Toy Drive to supply items to the kids whom they serve, while others (St Vincent de Paul, St Justin, Inn-vision, EPA Police Department) receive toys from different collecting agencies besides the Palo Alto Toy Drive. NOW, THEREFORE, I, GREGORY SCHARFF, Mayor of the City of Palo Alto, on behalf of the City Council do hereby proclaim Robert Steele as a Community Star Award recipient for providing outstanding public service and records its appreciation of Robert Steele to the City of Palo Alto. Presented: April 15, 2013 ______________________________ H. Gregory Scharff Mayor CITY OF PALO ALTO PROCLAMATION Expressing Appreciation to the Environmental Volunteers for Outstanding Public Service WHEREAS, the Environmental Volunteers, which were founded in 1972, have provided hands-on programs in environmental stewardship and explorations in natural science to over 11,000 local children in San Mateo and Santa Clara counties each year; and WHEREAS, the Environmental Volunteers renovated the historic boat-shaped Sea Scout building, now called the Eco Center, which opened on July 22, 2012, and is located in the Palo Alto Baylands Nature Preserve to serve as an office and be a gathering place for environmental education; and WHEREAS, the Eco Center serves as a hub on the peninsula for community connections, a hands-on science center for the next generation of schoolchildren, a starting-off point for Baylands hikers, and a resource for marshland ecology education and the advancement of environmental stewardship in the Bay Area; and WHEREAS, the Environmental Volunteers launched two new educational opportunities; a marsh cam that streams live images to the EV website where visitors to the site can see the marsh at any time, and on the webpage they can explore educational resources about marsh flora and fauna; and WHEREAS, the Environmental Volunteers developed a smart-phone application for a self-guided walking tour of the Baylands Preserve; and WHEREAS, in October 2012, the Environmental Volunteers installed twelve new interpretive signs in the Eco Center’s Native Plant Garden along the Bay Trail. These educational signs provide unique and interesting facts about the flora found in the Palo Alto Baylands; and WHEREAS, in 2012, the Environmental Volunteers was named one of the Top Ten Best Volunteer Opportunities in the Bay Area by GreatNonprofits.org. NOW, THEREFORE, I, GREGORY SCHARFF, Mayor of the City of Palo Alto, on behalf of the City Council do hereby proclaim the Environmental Volunteers as Community Star Award recipients for providing outstanding public service and records its appreciation of the Environmental Volunteers to the City of Palo Alto. Presented: April 15, 2013 ______________________________ H. Gregory Scharff Mayor CITY OF PALO ALTO OFFICE OF THE CITY CLERK April 15, 2013 The Honorable City Council Palo Alto, California Selection of Candidates to be Interviewed for the Library Advisory Commission for Two Terms Expiring on January 31, 2016 Attached are seven applications submitted for two terms ending on January 31, 2016 on the Library Advisory Commission. Staff requests that the City Council determine which candidates to interview. Interviews will be scheduled as a special meeting with the date to be determined. Copies of all applications are attached. Some applications may be redacted at the request of the applicant. A full set of non-redacted applications will be emailed to Council Members directly. The applicants are as follows: 1. Jared Bernstein 2. Sheena Chin 3. Don McDougall 4. Robert Moss 5. Howard Ocken 6. Joan Reid 7. Greer Stone ATTACHMENTS: Bernstein (PDF) Chin (PDF) McDougall (PDF) Moss (PDF) Ocken (PDF) Reid (PDF) Stone (PDF) Department Head: Donna Grider, City Clerk Page 2 Please Return to: Office of the City Clerk 250 Hamilton Avenue Palo Alto, CA 94301 650-329-2571 CITY OF PALO ALTO LffiRARY ADVISORY COMMISSION SUPPLEMENTAL OUESTIONNAIRE Name: Jared Bernstein Date: 11 March 2013 Please print or type your answers to the following questions and submit with your completed application. You may submit additional sheets, if necessary, to complete your answers. 1. Have you attended the following meeting? Yes No • Library Advisory Commission c==J (D&e: ----~----~ 2. How did you Learn about the vacancy on the Library Advisory Commission? Community Group: D Palo Alto Weekly: [l] The Daily Post: D Website: c==J (if yes, please identify website) ____________ _ Email from City Clerk: D Library Bulletin Board: D FlyerlBookmark: D Other, Please Specify: __________________________ _ 3. Describe your involvement in community activities, volunteer and civic organizations: For the past year or two, I've tutored math at the 8oys&Girls Club of the Peninsula (8GCP). 4. What is it about the Library Advisory Commission that interests you? What qualities, experience and expertise would you bring to the Library Advisory Commission? I use our library a lot. I also use the Stanford Library and project Gutenberg. I have experience with computational linguistics (for text analysis and search). I co-founded a relatively successful company and I have managed several large government projects at SRI International. I read several languages (slowly), and I have experience with other cultures (lived in Iran, Egypt, and Argentina). Bds/Commissions -702-23 9/13/2011 5. How would you see your role as commissioner when recommending policy and working with the Council? Responding to Council requests for analysis, and providing fair analysis of options, ! summaries of community input, and well-supported recommendations. 6. What do you see as some ofthe key challenges in implementing the recommendations of the Commission's December 2006 report to Council "Library Services Model Analysis and Recommendations: http://www.cityofpaloalto.org/knowzone/agendasilibrary.asp Among the challenges noted in the report, there are two that seem most important: a) providing inviting spaces for study and recreation, with modern support services, & b) digital outreach to provide service to those who cannot or prefer not to visit a branch. Modern research is rarely paper-based and will become less so quickly. PACL needs to find an affordable way to stay up-to-date on delivery of digital materials in branches and to people at home. At the same time, the branch should be a convenient place to study and browse solo, while it can also be a place for small collaborative projects of many kinds. Finding affordable ways to meet these goals will take some digging and/or creativity. 7. If appointed, what specific goals would you like to see the Library Advisory Commission achieve? I have no specific goals, but to offer my tim~ and attention to issues relating to policy and budget. Bds/Commissions -702-23 9/13/2011 Gonsalves, Ronna From: Sent: To: Subject: Attachments: Hi Ronna, sheena chin <chinsheena@yahoo.coni> Wednesday, April 10, 2013 9:14 AM Gonsalves, Ronna Complete answers and resume SheenaChin.doc Thank you for the reminder. The followings are the complete answers to question # 3, 4 and 7. In addition, I also attach my resume in case the council would like to know mQre about my professional background. Thank you very much. Sheena 3. Describe your involvement in cOmIilunity activities, volunteer and civic organizations: I have many experiences of community involvement. Back in Taiwan when being a TV reporter, I often covered stoires on community activities and answered questions that viwers might have about specific issues. After moving to the bay area in 2004, I became a volunteer for local library, Books and Me library. Since then I have planed, developed and executed all kinds of activities to introduce Chinese culture to non-native speakers. In addition, I have helped designed and implemented other activities to the Chinese community. One of the major tasks was to help families hit hard by the economic crisis. When the economy had gone out of track in 2009, many jobs were shaken, or even eliminated which forced some families to give up their homes. In order to help these families, we set up a 3"-week seminar, "how would families adapt to the economic crisis?", aiming to provide job consultations, financial resources and mental support. The conference was the first action in Chinese community to assist families in financial crisis. As a show host withSingTaO Chinese Radio, I have many opportunities to attend community activities on behalf of SingTao Chinese Radio such as Chinese New Year celebration, Lantern Festival and Talent Show for kids etc.. Among them, I would like to mention the annual reading activity at College Park Elementary, San Mateo. In order to encourage kids to reading, College Park Elementary invites guests to support "Community Guest Reader Day" event and 1 have been reading stories to kids at the College Park Elementary since 2010. 4. What is it about the Library Advisory Commission that interests you? What qualities, experience and expertise would you bring to the Library Advisory Commission? " The main purpose for me to apply for the Library Advisory Commission is that I would like to show my support. As a mom of 3 kids, I have been benefited from all kinds of activities that Palo Alto library haS to offer from story time, reading group, to summer reading and activity program. I think the library strives to take good care of the COinmunity from kids to seniors and it has done a good job. I have been in the Media business for many years. and one of my specialties is to dig out facts such as what people want and what people really care about. The core mission for the library is to serve people in many ways, therefore, how to match what residents need becomes essential. I hope I can be part of the Library Advisory Commission not only to support what the library has been doing but also utilize my experience and expertise make the l~brary service even better. 7. If appoulted, what specific goals would you like to see the Library Advisory Commission achieve? It is now very common for people to use electronic devices to manage daily life. If the library wants to be part of residents' lives, electronic usages ~ould be inevitable. If appointed to the Library Advisory Commission. I would like to see the library be more electronic. A few things could help achieve that goal. First, the library , 1 must continueto use Internet "as a major source to communicate with Palo Altans. Secondly, introduce more E- books, which now is the trend. E-books could increase library~s collections without actually occupying lots pf storage rooms. In addition, more readers could enjoy the same E-book at the same time. Thirdly, increase the number of electronic devices such as computers and tablets that residents can use in the library or can loan to ,. . home. 2 Co-Founder;' PinGrow.com2008 -present -Provide Chinese learning and respond to local issues promptly. -Develop, organize, create and write materials for website contents. -Produce video and audio clips to enrich the website~" ,-Handle viewers' requests and promote PinGrow.com to the public. -Visitor statistics grow stably. Community Manger, Zhouyu cultural foundation, Los Altos, CA 2004 -2010 -Develop and implement communication plan for the non-profit organization. Reach out the target~ groups and build up' the public relationships. Build up image and reputation for the organization. Write on.;line newsletters for members and the public. Prepare, organize and present media briefing. Drive and coordinate media coverage for library's activities. , Design, create and implement major events for members and non-members. Plan, organize and host special events for major holidays. Update and create website contents for news and events. Chinese Teacher,Woodland School, Portola Valley, CA 2009 -2010 -Initiatedschool Mandarin program for students from k to 3rd grade. -Customized design and developed Mandarin materials and activities to students at different I'anguage levels. -Incorporated Chinese culture into teaching materials. -Executed Mandarin classes 2 hours per week. Chinese Teacher, Palo Alto Chinese School, Palo Alto, CA 2007 -2011 -Initiated Mandarin program for pre-school kids for both Mandarin and non-mandarin speakers. -Designed and developed Mandarin materials and curriculums to meet various needs. Implemented Mandarin instructions 2 hQurs per week. -Actively participated in academic research and won several awards on Chinese Learning. -Incorporated. Chinese culture in Mandarin teaching. News Writer/Reporter/Editor, KTSF 26, Brisbane, CA 2003 -2004 -Responded to time-intensive topics and breaking news. - . Rewrote, translated and' edited news stories taken from scripts, wires and other TV news stations to meet local needs. -Developed and createq compelling, and succinct stories from raw materials. Performed and prepared scriptwriting, voice over, and video editing. -Worked closely with the show producer, writing scripts for air, editing copy, and making show run-down suggestions. -Operated AP NEWSCENTERlENPS and managed CNN feed services. 2 Author of "The Digital Revolution in TV Industry", ISBN 957-98520-8-1 1999 -2000 -Researched various topics related to digital technology such as risks and opportunities while digitizing. Interviewed high-level management of major 1V networks in the US. -One of the major resources about digital media for 1V professionals in Taiwan . . Reporter/News Host/Anchor/Producer, China Television Company (CTV), Taipei, Taiwan 1992 -2000 . -Anchored live morning news and hosted news show for in-depth coverage. -Specialized in field and live reporting and prompt interviews . . -English News anchor and writer. News reported in English and Chinese scripts translated to English. , -Built up/maintained good relationship with news sources. -Covered headlinelbreaking· news stories, producing news clip from scripting writing and voice-over. ' Served as a leader in the newsroom with ouiStand,ing hosting profession, excellent writing skills and solid news Judgment. . -'Supervised the production group to CQmplete news packages/news shows. -Generated subjects, ideas and followed up stories to boost rating. -Involved with marketing of programslviewers, managed budgets and responsible for rating. -Conducted weekly finanCial market reviews. -Team member of News On-Line production. Assisted launching website for China Television Company including writing , , HTML scripts. Instructor, National Taiwan College of Arts, Taipei, Taiwan 1997 -1999 -,Offered classes to students in news writing and news production. -Coached tactics in news coverage, report, announcement and anchor. News Host/Editor, Broadcast of China Corporation (BCC), Taipei, Taiwan 1991 -1992 -Served as Prime-time news announcer and hosted news shows. Re$ponded to prompt news stories and planed in-depth coverage. Responsible for financial news and prime-time news rundown. -Rewrote/edit stories from scripts, wires and other materi~ls. EDUCATION , MBA study, Univ. of Nebraska, Omaha, Nebraska Northwestern Polytech University, Fremont, CA MA in Journalism, National ChengChi University, Taipei, Taiwan SA in Journalism, Chinese Culture University, Taipei, Taiwan 3 AWARDS • Awarded paper "ZhuYin (Chinese Phonics) instruction through technology" for Luncheon Presentation atAmerican Council on the Teaching of Foreign languages ,(ACTFl2011) Denver, Colorado • Awarded paper "Technology boosts ZhuYin (Chinese Phonics) Characters teaching" for International Conference on Internet Chinese Education 2011 (ICICE2011) . • Awarded paper "Mobile Chinese Teaching" forthe Sixth International Conference and Workshops on Technology and Chinese Language Teaching (TelT 6),2010, Columbus, Ohio • Awarded paper Web 2.0 Storytelling" for International Conference on Internet Chinese Education 2009 (ICICE 2009), Taipei, Taiwan • Winner of the Scholarship from the National Press Council, Taiwan, 1999 • Winner of the National Outstanding Journalist Award, Taiwan; 1998 CERTIFICATION • California Basic Educational Skills Test (CBEST) • California Subject Examination for Teachers (CSET), Mandarin I, II, III PUBLICATON • "ZhuYin (Chinese Phonics) instruction through technology", 2011 • "Technology boosts ZhuYin (Chinese Phonics) Characters teaching" 2011 • "Mobile Chinese Teaching", 2010· • 'Web 2.0 Storytelling", 2009" • "The Digital Revolution in TV Industry", 2000, ISBN 957-98520-8-1 4 Please Return to: Office of the City Clerk 250 Hamilton Avenue Palo Alto, CA 94301 650-329-2571 CITY OF PALO ALTO LIBRARY ADVISORY COMMISSION SUPPLEMENTAL QUESTIONNAIRE Name: Don McDougall Date: 3/22/13 Please print or type your answers to the following questions and submit with your completed application. You may submit additional sheets, if necessary, to complete your answers. Yes No 1. Have you attended the following meeting? • Library Advisory Commission D (Date: ______ --J.) 2. How did you Learn about the vacancy on the Library Advisory Commission? Community Group: D Palo Alto Weekly: D The Daily Post: D Website: D (if yes, please identify website) __________ ----,-__ _ Email from City Clerk: D Library Bulletin Board: D FlyerlBookmark: D Other, Please Specify: Midtown Enews ~---------------------------- 3. Describe your involvement in community activities, volunteer and civic organizations: Currently board member, TheatreWorks Silicon Valley Over the last few years I travelled extensively to Australia which made it difficult to commit to community organizations. I now look forward tp the opportuniy to be acitve in local voluteer and civic activities. 4. What is it about the Library Advisory Commission that interests you? What qualities, experience and expertise would you bring to the Library Advisory Commission? . Richard Florida has written in "The Rise of the Creative Class" and elsewhere that local arts activities are important for a community to have a vibrant and innovative environment. Palo Alto has enjoyed the experience and reputation of being an innovative environment. The Library is an important arts platform for Palo Alto. The Library provides access to the arts through literature, periodicals, video, arid other media but faces the challenges of budgets, funding, and resouce allocation. I would like to use my experience to help the Library address these challenges and to realize new opportunities. Bds/Commissions -702-23 9/13/2011 5. How would you see your role as commissioner when recommending policy and working with the Council? , The role of the commission and commissioner is to actively provide consideration of and advice on delivery of service, allocation of investment, development and maintenance of property, and engagement in partnerships. The commissioner must provide awareness of and actively review legislation and other relevant plans and activities of state (and local) governments. A commissioner should also engage in the review of community interests and statements both direct and through social media. A commissioner's role also include suggestions, review, and support of Library fund raising. 6. What do you see as some ofthe key challenges in implementing the recommendations of the Commission's December 2006 report to Council "Library Services Model Analysis and Recommendations: http://www.cityofpaloalto.org/knowzone/agendas/library.asp The key challenge for the commission is to optimize the use of available funds to meet the Recommendations' sometimes conflicting goals. Growing collections, enhancing programs, or expanding hours can be at odds with staffing and facilities investments. Maintaining the optimal volume, level, and categories of collections for a community of changing literacy and interests requires exploring and understanding new technologies. Successfull and useful enhancement of programs requires understanding rapidly changing demographics and interests. Balancing professional staffing with volunteer programs and developing new versus mainaining exising facilities requires careful analysis and trade-offs to meet community requirements. 7. If appointed, what specific goals would you like to see the Library Advisory Commission achieve? I would like to see the Library Advisory Commission position the Libary as an example of vibrancy and innovation within the community while optimizing resources to show fiscal responsibility and interest in providing community services. The Libary should continue to grow as a place of literacy and community. Bds/Commissions -702-23 9/13/2011 Please Rehrrn to: CITY OF PALO ALTO LIBRARY ADVISORY COMMISSION SUPPLEMENTAL QUESTIONNAIRE Name: Robert Moss Date: Office of the City Clerk 250 Hamilton Avenue Palo Alto, CA 94301 650-329-2571 ------------------------------------------- Please print or type your answers to the fonowing questions and submrt with your completed application. You may submit additional sheets, if neeessary, to complete your answers. 1. Have you attended the following meeting'? • Library Advisory Commission Yes o (Date: All for 3+ yrs) No D 2. How did you Learn about the vacancy on the Library Advisory Commission? Community Group: 0 Palo Alto Weekly: 0 The Daily Post: 0 Website: D (if yes, please identifY website) _____________________ _ Email from City Clerk: 0 Library Bulletin Board: 0 FlyerlBookmark: 0 Other, Please Specify: Commission terms expiration date. 3. Describe your involvement in community activities, volunteer and civic organizations: Barron Park Association Foundation -Treasurer; Barron Park Association -Past Treasurer & Chair Creek Committee & Past Chair Zoning & Land Use Committee; Past Community Co-Chair, Moffett Field Restoration Advisory BoardPast President, Palo Alto Civic League; Palo Alto Civic League Citizen of the Year, 1983 ; Past President, Palo Alto Schoot for Jewish Education; Past Treasurer Palo Alto Council for the Arts· Terman Working Group alternate community member; Board of Directors, Secretary and Treasurer, Cable Co-op of Palo Alto; Past Treasurer Friends of the Pato Alto library (FOPAL). member Center for Pubtic Environmental Oversight; member Working Group, Palo Alto emergency water supply; Helped to incorporate the city of Rancho Palos Verdes. Often attend and narticipate in City Council, City Finance Committee, ARB and Planning & Transportation Committee meetings. 4. What is it about the Library Advisory Commission that interests you? What qualities, experience and expertise would you bring to the Library Advisory Commission? I have been invarved with Hbrarles in general and the Palo Arto library in particular for decades. As a member of the FoPAL Board and treasurer I interacted frequentlv with library staff and members of the community. We worked to make the Hbrary a valued and effective provider offmportant and novel services, to upgrade faCilfties and to provfde books and library materials. As a Cable Co-op Board member and treasurer I was able to obtain a grant of over $420,000 to the 9 libraries system. 5 of which are fn Palo Alto. The money was used for computers, printers, loaner laptops. wireless access, on-line services and subscriptions It was one of the largest grants made bv Cable Co-op. I also worked on fundrafsfng for the Chifdren's' library renovation and upgradfng. r was an active supporter or the successfuf library bond election. As an alternate member of the Terman Working Group I helped create the Terman branch library with a separate meeting room that operated successfully for years until PAUSD reclaimed the site. Bds/Commissions -702-23 9/13/2011 5. How would you see your role as cotnrIri,ssioner when recommending policy and working with the Council? libraries are weU regarded and used in Palo Alto, ranking just below fire and with or above police in performance and importance to the community. We need to be responsive to changing needs and uses of libraries and library facilities and do an excellent job of meeting user needs and expectations. That involves working with our excellent staff, community. and councUmembers to identify opportunitiesf needs, and ways to serve them and transmitting the information effectively and clearly to the council. The new expanded Mitchell park will offer facUities and services previously unavailable in Palo Alto. It will be a learning experience seeing how users react to and use the new facility and modifying our services and operations as needed. 6. What do you see as some of the key challenges in implementing the recommendations of the Commission's December 2006 report to Council "Library Services Model Analysis and Recommendations: http://www.cityofpaloalto.orglknowzone/agendasJlibrary.asp The new facilities will offer both major improvements in scope and quality of services plus challenges in identifying and provtding desired offerings including a range of materiats and prioritizing uses of meeting and study areas. Operating expenses for the new, expanded facilities will increase so adequate funding may be an issue. There atso is an increasing demand for materials in non-English tanguages that further impacts funding needs. Different types of service delivery may need to be created, but the problem may witt be fundtng. It coutd be hard to take new approaches without impacting existing services and offerings that many library user's value. Types and ranges of library materials need regular review and readjustment of the mixtures. Thts can create uncertainty aM add costs We must be able to accurately evaluate value of services offered. For example,availability of E-books is uneven as some publishers refuse to offer them and other charge excessive prices and timit circulation. How can we offer the range and variety of E-books that patrons want at reasonable cost? 7. If appointed, what specific goals would you like to see the Library Advisory Commission achieve? Make the transitions to the new facilites ;at Mitchell Park and Main transparent, sucessful, and efficient. Assure adequate staffmg and support for an library facilities and operations. Get residents involved in responding to the LAC and staff outreach for feedback and support. Info"" the public about the new library facilities and offerings and learn what patrons want, need, and wouJd use in our libraries. Identify what resources are most desired for the expanded Mitchell Park and Main libraries. Do library users want more books, more E-books? If so what categories and areas of interest? Work with the staff, Council. Community, and non-profits to find needed support and funding for operations and collections. Identify any new programs or materials needed by users and suggest how they can be funded if currect funding is inadequate. Seek grants, contributions, and other funding sources to supplement general fund support. Bds/Commissions -702-23 9/13/2011 6. What do you see as some of the key challenges in implementing the recommendations of the Commission's December 2006 report to Council "Library Services Model Analysis and Recommendations: http://www.cityofpaloalto.org/knowzone/agendas/library.asp 1\t.-.\'1:\,0"'\ <;~~ t~ lot-. \~~\ 1/ \'Vvo\\v,V'~b~~1? 'S.~td~~\-:;\ 1-\ ~~ ~~ D~A.,..\~ ,~\\J(,~ ~ C-<)'rIs\htu-\\'6Y\ ~ ~~ ~ \\'r\c1J\ ~ A~ ~~~v\V-. 7. If appointed, what specific goals would you like to see the Library Advisory Commission achieve? E ~sv.K.-. .,\vj ~~ ~~::> \1t-h ~lA,\o\\~ . \~ ~W~ ~ ~~ d\~ N,~ ""tl.\..tk '\\-mkt <\1.u, <'; P cJ. ~\t, \.b\l'.>\ '\~"'. Bds/Commissions -702-23 9/13/2011 6. What do you see as some of the key challenges in implementing the recommendations of the Commission's December 2006 report to Cmmcil "Library Services Model Analysis and Recommendations: http://www.cityofpaloalto.org/knowzoneJagendasllibrary.asp " t(y Cf.rr~'1rvJ-f'l ' a;~ .1Wf--/;r-rz<-I-{!A~' (Jt'ff~ r I I I' ~, .!) eiC;"-Vw--{--' ci-f'?j.~;O( h) rC:~ !c~VJ-r.h~ . . ~ / J ,~ . ,..' ---,/.;;... ~G t~ 'C-'L--7'-v ,:;:,..; .4-,,&- Please Return to: CITY OF PALO ALTO LIBRARY ADVISORY COMMISSION SUPPLEMENTAL QUESTIONNAIRE Greer B. Stone Name: Office of the City Clerk 250 Hamilton Avenue Palo Alto, CA 94301 650-329-2571 ---------------------------------------- Date: 03/28/2013 Please print or type your answers to the following questions and submit with your completed application. You may submit additional sheets, if necessary, to complete your answers. 1. Have you attended the following meeting? Yes No • Library Advisory Commission c===J (Dme: ------------~) [2] 2. How did you Learn about the vacancy on the Library Advisory Commission? Community Group: D Palo Alto Weekly: 1../ 1 The Daily Post: D Website: c===J (if yes, please identity website) ________________________ __ Email from City Clerk: 1 ../ 1 Library Bulletin Board: D FlyerlBookmark: D Other, Please Specity: ___________________________________________________ _ 3. Describe your involvement in community activities, volunteer and civic organizations: I was a substitute teacher for the Palo Alto Unified School District during the 2011- 2012 school year. I had the opportunity to teach in nearly every school in the district. For the past five years, I have also intermittently volunteered at Ohlone Elementary. These experiences not only gave me a window into the teaching profeSSion, but also afforded me the opportunity to connect with the young people of Palo Alto. 4. What is it about the Library Advisory Commission that interests you? What qualities, experience and expertise would you bring to the Library Advisory Commission? 5. How would you see your role as commissioner when recommending policy and working with the Council? 6. What do you see as some of the key challenges in implementing the recommendations of the Commission's December 2006 report to Council "Library Services Model Analysis and Recommendations: http://www.cityofpaloalto.org/knowzone/agendas/library.asp 7. If appointed, what specific goals would you like to see the Library Advisory Commission achieve? 0/1"2/')('11 model and then relay that information to the City Council. My experience on the Alcohol Task Force and my legal training has taught me how to do just that. 5. How would you see your role as commissioner when recommending policy and working with the Council? I view the library through the lens of a student and with the perspective ofa young adult who grew up during the technology revolution. My role as Commissioner would be translating those views and experiences to the City Council and ensuring that the needs of Palo Alto's youth and student population are met. The library is one of the most valuable resources available to a student, and I would work diligently to ensure that our libraries are focused on that need. I would also focus on the need to update our libraries and ensure that they are meeting a technological standard that should be present in any library situated in Silicon Valley. Too many students fmd them antiquated and do not see the need for a library in an age of iPods and e-readers. However, the library should harness these new technologies and incorporate them whenever possible. As a commissioner I would help steer our libraries into the future and keep them relevant for a new generation. 6. What do you see as some of the key challenges in implementing tb,e recommendations of the Commission's December 2006 report to Council "Library Services Model Analysis and Recommendations: http://www.cityofpaloalto.org/knowzone/agendas/library.asp Some of the main issues surrounding the Library Services Model Analysis and Recommendations is the dearth in details surrounding particular recommendations and the lack of specificity concerning budgetary issues. This includes many issues, such as how to pay for particular recommendations. The report discusses the need for cross-training library staff and expanding service hours by 266 hours a week. However, the report is silent about any specifics on how to pay for additional training and the additional service hours. Currently, 78% of the total library budget is used up in staffing. This large discrepancy takes away valuable resources to renovations, programs, and materials necessary for the continuing viability of the libraries. Suggesting such drastic increases in .' ~ , "'" ... optional seminars for students (college and middle/high schools) to come to the libraries and have librarians teach various seminars focused on research strategies. We have a chance to teach a new generation of students that the library is not only a place where they can check out books, but a beacon, of education where they can learn the tools that will best help them in the future. CITY OF PALO ALTO OFFICE OF THE CITY CLERK April 15, 2013 The Honorable City Council Palo Alto, California Selection of Candidates to be Interviewed for the Public Art Commission for One Term Expiring on April 30, 2015 Attached are four applications submitted for one unexpired term ending on April 30, 2015 on the Public Art Commission. Staff requests that the City Council determine which candidates to interview. Interviews will be scheduled as a special meeting with the date to be determined. Copies of all applications are attached. Some applications may be redacted at the request of the applicant. A full set of non-redacted applications will be emailed to Council Members directly. The applicants are as follows: 1. Jeanne Levan 2. Ben Miyaji 3. Elaine Poplingher 4. Robin Theil ATTACHMENTS: Lavan (PDF) Miyaji (PDF) Poplingher (PDF) Theil (PDF) Department Head: Donna Grider, City Clerk Page 2 Please Return to: CITY OF P ALO ALTO PUBLIC ART COMMISSION SUPPLEMENTAL QUESTIONNAIRE Jeanne Lavan Name: Office of the City Clerk 250 Hamilton Avenue Palo Alto, CA 94301 650-329-2571 ----------------------------------------- Date: March 28,2013 Please print or type your answers to the following questions and submit with your completed application. You may submit additional sheets, if necessary, to complete your answers. 1. Have you attended the following meeting? • Public Art Commission Yes [2] (Date: _V_ia_i_nt_e_rn_e_t _3/_2 ..... V\? No D 2. How did you Learn about the vacancy on the Public Art Commission? Community Group: D Palo Alto Weekly: D The Daily Post: D website:D Yes, Please Identify: ___________ ----,-----, ____________ _ Email from City Clerk: D Library Bulletin Board: D FlyerlBOOkmark:D Oth PI S 'f Vikki Tabak er, ease pecl y: _______________________________________ _ 3. Describe your involvement in community activities, volunteer and civic organizations: Please see attached sheets. 4. What is it about the Public Art Commission that interests you? What qualities, experience and expertise would ~u bring to the Public Art Commission? Please see attached sheets. Bds/Commissions -702-23 9/13/2011 5. How would you see your role as board member when recommending policy and working with the Council? Ifit were necessary to change current roles, how would you approach making such changes? Please see attactied sheets. 6. What are the current issues facing the Public Art Commission? Please see attached sheets. 7. What are your feelings about Palo Alto's current inventory/collection of Art in Public Places? What suggestions would you have for increasing the availability of more Art in Public Places? Please see attached sheets. 8. Ifappointed, what specific goals would you like to see the Public Art Commission achieve? Please see attached sheets. Bds/Commissions -702-23 9/13/2011 Education New York Institute of Technology Bachelor of Architecture, with an emphasis on materiality and design. My thesis was a study in two parts; beginning with a study of the painting View of . Toledo by E1 Greco, and culminating in a study of spatial design influenced by this painting. List relevant training and experience, certificates of training, licenses, or professional registration: I am a registered Architect, California Architects License Number C271162 As an Architect, artist and designer I have worked closely with clients to understand their goals, to interpret them, visualize and give shape to their future. It is through this relationship that true art is achieved, as it is a reflection of the soul of the client. Continuing Education: California Architects Board: • Accessible Public Accommodations • Accessibility-Stepping Through Vertical Heights Stanford Continuing Studies: • Creativity and Leadership • Haussmann's Paris and Impressionism • What's the Real Deal with Oil, Gas, and Coal? Painting and Product Design: • California Academy of Painters, Palo Alto • TechShop member, Menlo Park As a collector of art, I enjoy living with and am inspired by pieces I have collected over the years by Kara Walker, Jane Tivol, David Hering, William Wareham, Don Fritz, Peter Wayne Lewis and Brigitte Curt. 3. Describe your involvement in community activities, volunteer and civic organizations: I seek out ways to be involved and engaged in my community. As technology increasingly lures us to stay behind screens, my family and I look for alternatives to reach out, learn from and appreciate our community. Palo Alto offers so much to us. To name a few: we attend Lab Crawls, take classes and attend art events at Stanford /Stanford Hospital, we attend events at the Palo Alto Library and Art Center, and participate in local drives to support in-need communities. Currently I am volunteering at my children's schools(Castilleja and Phillips Brooks) in the classroom, the art program, outreach programs and annual benefits. I have also served on the board of the Cleo Eulau Center that is dedicated to helping youth rebound from adversity. 4. What is it about the Public Art Commission that interests you? What qualities, experience and expertise would you bring to the Public Art Commission? PAC interests me because of the critical role it plays in supporting, engaging and adding to the culture of Palo Alto. The presence of public art allows all of us to live with art and benefit from the stimulation and richness it provides. It reaches out and brings us together through experience and spontaneous dialogue, it gives our community an opportunity to talk with one another, it makes our city pedestrian friendly, it stimulates our brains in ways that our every day activities can not, it fuels our imaginations and expresses our civic aspirations. I chose to make Palo Alto my home in 2011 because of its rich culture. The people of Palo Alto value education, technology, curiosity, imagination, diversity and creativity. As a new resident of Palo Alto, I was seeking a way to be involved in the city as well as new volunteer opportunities. When I learned of the opening on PAC I thought it a great fit. Art has always been an important part of my life. I am an Architect, and I create and collect art. Civic planning should be forward thinking and take into consideration all the opportunities we have to engage and support our community. As an Architect, artist and designer I will work with our team to create inventive and inspirational dialogue on the many considerations around public art: planning, procurement, commissioning, community engagement and funding. I also have experience in project management and construction. 5. How would you see your role as board member when recommending policy and working with the Council? If it were necessary to change current roles, how would you approach making such changes? Palo Alto has long recognized how art enhances and provides value to its community. This is apparent in the art that is currently a part of our city life. Any future recommendations should address the historical as well as the future direction of the city. Palo Alto will change considerably in the next decade(s) and public art should, in ways yet to be determined, be part of the growth plan of Palo Alto. Growth is complex; as it can be physical or cultural or both. I think new policies would be most successful if they address these complexities. I see my role as board member to consider this growth, think creatively, seek ideas from others and cohesively and concisely recommend policy to the Council. If change to current roles is necessary, I would work with fellow commissioners to identify the needs for change, brainstorm possibilities and collaborate in identifying the most desirable outcome. The path to problem solving should be inquisit~ve, respectful, creative and open-minded. These qualities can produce the best possible outcome because of the knowledge and insight gathered along the way. 6. What are the current issues facing the Public Art Commission? The PAC has had interesting and inspiring temporary art installations recently("water Lilies", "Community Advice"(PAAC), "Lawn Bowls"). These installations got my attention and made me aware of thePAC. I thought the temporary nature was perfect for what they were -visionary sculptures with timely and cultural references that challenged and engaged the public. Palo Alto is evolving and the commission plays an exciting role in how they communicate this growth. 7. What are your feelings about Palo Alto's current inventory/collection of Art in Public Places? What suggestions would you have for increasing the availability of more Art in Public Places? I have strong relationships with a lot of the art in Palo Alto. It is a wonderful collection that I enjoy frequently throughout my day. I am a regular biker along the baylands and enjoy the installations in Byxbee Park. The pieces are perfectly sited as the art reads like organized artifacts. In addition, I especially like the murals by Greg Brown as they are fun and beautiful and they enrich Palo Alto in a wonderfully subtle and humorous way. The collection has variety and I think it represents the community well. We are so fortunate to have quality art at our libraries, along our sidewalks and even along our roadways. Mitchell Park will soon reopen and the Beasely sculpture, architecture and environmental features are exciting additions to Palo Alto. We have a wonderfully vibrant downtown to enjoy: it is lush with trees, it has areas carved out at intersections for seating, and it has Lytton Plaza-but it does not have a significant art presence. I would like to see more public art in the University Avenue area. As art makes for a good pedestrian environment and sense of place, I think the eastern area of University would benefit from an art installation(s) . 8. If appointed, what specific goals would you like to see the Public Art Commission achieve? If appointed, I would first gather knowledge about the specific growth plans of Palo Alto to help inform my vision of Palo Alto. But I do have some areas that I am curious about. I think the University AvenuelHighway 101 interchange is an important gateway into Palo Alto. This could be made a unique and notable experience with landscape design or a large sculpture. The commission could partner with Caltrans and East Palo Alto. Local corporations could be asked to assist with'funding. "., , , March 28, 3013 . ., . . City Council Office of the City Clerk 250 Hamilton A venue 'palo ALto, CA 94301 Dear City Council Members, I appreciate the opportunity to submit my application to you for the position on the PUb.lic Art Commission. . ... Thank ydU foryour consideration. .. • Am yeu'a 'Palo Aho Resident? • Uoy.ou.have lIJI.y rclativcs'ormemlxmi ofyprir-household wio are em,ploy~bYj))~Cily of Palo Alto, who are cummdyserving on the City,Council or wbo.are:boaril member.;: Of unmnissioocrs1 ' • Are you available and committed to complele the term applied for'/' • CaJifo~:State Jaw lll<J.uires .apPointed bQatd and commission melllbers to file a detailed" disclosure of 'then-financial ;jn~ts,. Fair PolitioaI. Pra~g COlXlllli$ajon. CODf1ict 'of, ltIterest,fonn 100. Do,you.havean iD'YeSbncntiil, or-do you serve ~an offie.c:r'Ofdirector of: a company<dqing business in Palo Altow.bicb you Gclieve is lilcely to; l) engage in ~ D D [l] bll$ine.ss with the.City, 2) provi4e produC:1$ (]J smi~ ror~lty pr:ojec:~(JI' 3) 'be affected' D I?Y tWclsions ~ftbeboardor eommi.sslQn you. ~ applyiQg fi)iI . lj yQu unnvered yes, yr:m .»IQJI w~h ta c()1mjJt with lite. Ci/1 AtJotne>' .6tfot'e filtng tbis qppliCiliion. Please to'ff/l1'Cl tilt! City A1tOf'Y/#Y'S ()jJi~ at 650-'329-. 2171. • 'E~~ your ptinciplil resident!; do Y<;lu own reli.lpTo]W#rty in Palo Alto-or within tWQ D mlleli ofPalo Afto? . EMPLOYMIiJNT Ng, [l] [l] D ~t or IlIStI!mploy~ 'Retired NameoiCompany: _____ -"'-_---"'--__ ___ Occupation: Project Lead/Manager Qf f'Ilfired,.1nditatefonner occupation) Slgnamre of ,",plicant' 1$ r!JUj -j.: .. .... . ... .... {)tUo, 1212012012 '*The -applicant blust have a ,dilPfal signature Or print tbe applieatleo. sign in ink, ana deliver 10 the City 'Clerks OtU9C. A typed signature or unsigned applicatioo will Dot be a.ccq>ted. Bds/Commissions -702-23 9/13/201J. Please Return to: Office of the City Clerk 250 Hamilton Avenue Palo Alto, CA 94301 650-329-2571 ) CITY OF PALO ALTO PUBLIC ART COMMISSION SUPPLEMENTAL QUESTIONNAIRE Name: Poplingher Elaine Date: 12.16.2012 Please print or type your answers to the following questions and submit with your completed application. You may submit additional sheets, if necessary, to complete your answers. 1. Have you attended the following meeting? • Public Art Commission Yes D (Date: _____ ---L 2. How did you Learn about the vacancy on the Public Art Commission? No [Z] Community Group: D Palo Alto Weekly: D The Daily Post: D website:[l}fYeS, Please Identify: _c_ity"-o_f.:...p_al_o_a_lto_._o--'rg'---_______ _ Email from City Clerk: D Library Bulletin Board: D FlyerlBOOkmark:D Other, Please Specify: ________________________ _ 3. Describe your involvement in community activities, volunteer and civic organizations: Mid Peninsula Educational Center, Stratford School -taught classes: Why buildings stand up and why buildings fall down, How to build the tallest structure 4th grade, Bridges and other structures build to span 6th grade Palo Alto Art Center -special events, art exhibitions organization Palo Alto Historical Association -Main Library files organization 4. What is it about the Public Art Commission that interests you? What qualities, experience and expertise would you bring to the Public Art Commission? As a community partner, the Public Art Commission is an educational institution that actively support the mission of the City through its services, programs or its ongoing financial support, with end results in positive changes for the city and population. An undisputable love of art in all its forms that the City of Palo Alto has to offer and an extensive experience and knowledge in the field of art, architecture and interior design, urban planning and a great desire to be involved with and support the community that I am living in since 1989. Bds/Commissions -702-23 9/13/2011 5. How would you see your role as board member when recommending policy and working with the Council? If it were necessary to change current roles, how would you approach making such changes? Representing the Public Art Commission, as part of a team of knowledgeable and experienced people that care about the community they represent and the Palo Alto residents who know very well their town and its needs, etc. Based on comprehensive data and information, I will present a proposal regarding the change(s) to the board members and ask for their opinion in order to do what it is in the best interest of the community that the Commission represents. 6. What are the current issues facing the Public Art Commission? A more high-tech informative approach of each and every issue to the Palo Alto community members; also, more people and more resources need to be involved in a constructive way, in order to achieves all goals in a timely manner in the present economy. Art at the Mitchell Park Library and Community Center, the largest public works projects to take place in the City of Palo Alto, that should reflect the function and scale of the deSigned buildings, has only one work of art for which the artist has been decided -the Bruce Beasley sculpture, etc. 7. What are your feelings about Palo Alto's current inventory/collection of Art in Public Places? What suggestions would you have for increasing the availability of more Art in Public Places? Situated near Stanford University, Palo Alto is a cultural city with lots of history and a charming mixture of tradition and innovation, that could benefit from more public art, outdoors and indoors. Private collections art donations, local artists time and energy donations and public found raising, etc. and most of all community involvement. 8. If appointed, what specific goals would you like to see the Public Art Commission achieve? Education in the arts, especially public arts that are available to the masses is an integral part of the development of each human being, this is why the Public Art Commission should increase the importance of fine arts education by enabling the community to have more access to art and all its disciplines on daily bases, from lines of poetry printed on sidewalks to vast historic murals, or any visual or auditive form of art, since the function of public art is to increase the visibility of public spaces by enriching the public's perception of those spaces. Bds/Commissions -702-23 9/13/2011 ) y ,,': .'" " [IT'( cr r .. ~.I_ ~.LTG, C,,; , .. ~.,JI ry CLG,K UFFICE m~-\' af ~iJ i\\.::19· C:;\ r::--, CITY eLt'ffYn~S ild-o.~'" 8: 36 ,." OfFiCe: 12NO~ JPttB,;: ~~ 5:"0 PUBLIC ART COMMISSION CITY OF PALO ALTO BOARD AND COMMISSION APPLICATION SUBMIT TO: ' Office of the City Clerk 250 BamiltoD Avenue, Palo Alto, CA 94301 (6S0) 329·2571 Please print or type auswerl 1oa11 quesUoas and place N/A in those areas that do not apply. Be SUIC 1hat you fill out the attaehed supplement and retumit with yOlD' aIa!Il appJicati(Jll.-' , NAME: Theil Robin ~'u.~--~------~~~~---------- RESIDENCE ADDltBSS: Education: .. '. WORKPHmm: • ~ ' .. ) • Are you a Palo Alto baideal? • Do yOu.ve any relatives or membc:n of your bouaebold who lie employed t7ythe City of Palo Alto, who lie CUl'mldy MI'WIg on the City Council, orwho are board members or ) CODIJIliIIiooer __ -!.- • Are)lOU available ad c:oirmmtecl to complete the 1am appJied fc:1l1 _ll _ • Ca1ifomia "lawrequires appoiDted boent and commiuioD 1INIIIbtn 10 file a dcaiIed diacJoue .of ibeir &!ancial ....... Pair Political PracIices CommiuioD, Conflict of IDtmIt, Form 700. DoYOllime8ll ~m. or cIoyou SIne. anofticer or dhector of; • COlDJIIIlY cIoiDa bus.fa. in Palo Alto wbich you believe is likely 10; 1) ... in buIineu with the City, 2) provide procIudI oraerVicee for City projects. (13)110 atJected by declsiODl of the baird or COIIIIIliIIioIl you lie applyilJi for"l _x_ Q'yow tIM'HI'Wd yea. you'"",, wll" to cOllnllt witIJ tM C#1 Attorney be.fore filing ihII app1ica8on. PUaM cOlllDettM CIty.4ttomey's Ojfice at6S()'329-. 2171, • E:xc:ludiDa yClllr principel reaideDco, do you own reel PJOPfII'tY in Palo.Alto or within two miles of Palo Alto? ' EMPLOYMENT Present or last employer Manpower Name of Company: Occupation: Administntive Associate (IfNtincl.1ncIiCIIe former occupation) Signature of Applicant . Date: --------~--------- • I ' • Please Return to: Oftice of1he City Clerk 250 Hamilton Avenue Palo Alto, CA 94301 6S0-329-2571 CITY OF PALO ALTO PUBUC ART COMMISSION SUPPLEMENTAL QUESTIONNAIRE Name: Robin Theil Date: March 14,20011 ') J Pleue priDt or type your 8DlWerB to the fol1owiog questicms 8Ild submit wi1h your compleIed application. Y OIl may submJt edcfitioaal sheets. ifoecesury, to complele your auswers. 1. Have you attended the following meeting? Yes No • PublicArtCommission (Date: ____ ~) 2. How did you Learn about the vacancy on the Public Art Commission? ., . Community Group: '_x Palo Alto Weekly: _ Palo Alto Weekly Online: _ . Emailtrom CityClert: _ Library Bulletin Board: _' Fop..com: _ Other,"" Speoify: 3. ' I>escribe YO" involvement in commUDity activities, voluDtieer and civic 0IpDizati0JlS: Forlhe pest two years I have been a Block ~ Coordinator for my bloek. I have sone1ilrough over aix hOurs of1rBipigg for1bis.nm pitiqp, aDd per!iyipett4 in!!l!!M'!l!!A JII'!!Ctice exgcjses. 'Ibis is a city program 1bat help! to train and eclucate local cltizeDJ in how to respond in the event of a DI!!or Fa1h quake. Anotber local aeisbborboocl project I've been involved in was in initiatIDa 1be call for replacing the 1IMk bpneboa thatworel!!llQ!'f!d fjpm a mjnj-"pocket wk" Ij the m1rBIlm to Barroo M . .. .. s • 4. WbIt is.itaboul: 1he Public Art Cmnni .... 1bIt iDIInIa yoo? What qua1itiea. e.iqJerI.eace _ apedUe would )W brinsto 1heMIic Art CommiasioD? . I haw always been in1erested in pUblic art. I tbiDk it is important that citizeDs have art in 1heir COIIUDllDitiea. Public art briDp happina to 1belDllDY people that get to Il1O it in 1he coune oftbeir average days. I think pabIic art is my importaDtto a COIIIDlUIIity IS it adds to the community's civility aod CIllture. I lID very ardstic. I have 1akm many cIiflOreDt in classes in my ~. -1- . ., \ )' ) I -my role. "",eaead1& an ......... cuIaane aDd ... 1IIIt make1lP1he citiza of Palo Alto. , , IlOOmylOlt_nllllCbiDllII1bo dItInDt pouibIUtiIs (an forms) ofpubJic art available ill arcIerto be able to = ·.·..." ... qgticglp·Mipat .... _ ' 6. WhIt .. tlleCUft'U __ tBeiDI the Pub1icArt CcIDmiIaioD? I am DOt tUUy __ olaD of the cur.-__ ftdDadae Public Art Cmnnjaajan. I woukl iIDaaia,e fI1adms "'''-O(''*!pur I!I!!!!IdW .. wlof .... wopldbe ...... . 7. What .. yo1I' feeIiDp about Palo Alto's curreat iImmory/collection of Art in MHo P1Ice8? What sugpstloas woukl )'OIl haw tbr DaasiDg die miIabiIity ofmore Art ill Public PIacea? I lib Palo Alto', curnat C01lecdCll of art ill pabJk P .... but it seems to be CODCeIItIated In the dowDIown .. ap4 CelftbmiaAm" I'm. pgtlWlll! 0( ... Jip art in Midbe "00. MiMl+1d".,., 9"n! Shopping BRIll iJ. I lID bopiDg 11Iat 1hIIe will be some public art includecl in die new MiIdIell Park Llbay. IJmgwdwt.akWy ... whtigartiDMMoU Park, 1he pubJh: scbooIa could aU ... mtn pubUc art. I haw 1lOtice41h1t some (lfoot most) of1he ICbools do not Jwye gy wbJic vt OIl .air smgpda • ... '. a. If appointecl. whit specific pels would you lib to .. the Public Art CommiItion achieve? IneIudiDa Blare public art 1b8t ....... _ appeals to the cIi1feraat .. groups, i.e. chilcIrea. ..... 1CDion. IncWiIIa art aep6liillllldw of the diffenat cuIturea ofpeople who live here. FincJiDg ways of aetdD8 more public at in 1IIe public lICboola. • City of Pa 10 Alto 250 Hamilton Avenue Palo Alto, CA 94301 CONSENT FORM ) California Government Code Section 6254.21 states, in part, "No state or local agency shall post the home address or telephone number of any elected or . appointed official on the Internet without first obtaining the written permission of that individual." The full code is attached. This consent form will not be redacted and will be attached to the Application and posted to the City's website. Read the code, and check only ONE option below: I give permission for the City of Palo Alto to post to the City's website the attached Board and Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. OR x I Robin Theil request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City's website. I am providing the following alternate information and request that they use the following contact information instead. Address Phone Email . Robin Theil 11/10 Signature* Date BdslCommissions -702-23 11120/2012 City of Palo Alto (ID # 3622) City Council Staff Report Report Type: Consent Calendar Meeting Date: 4/15/2013 City of Palo Alto Page 1 Council Priority: Environmental Sustainability Summary Title: Contract with OPower for Home Utility Reports Title: Recommendation that City Council Approve a Contract with Opower for the Provision of Home Utility Reports to Residents Comparing Energy and Water Use From: City Manager Lead Department: Utilities Recommendation Staff recommends that Council approve, and authorize the City Manager or his designee to execute, the attached contract with Opower, Inc. (Attachment A) in the amount of $200,000 per year for a two year program (total over two years is $400,000) to provide Home Utility Reports to residents that will compare energy and water use between the recipient and a representative group of similar homes. Executive Summary To achieve the City’s long-term energy and water efficiency goals, many types of programs are needed including information-based behavior modification programs that compare residents’ energy and water use to their neighbors. Over the last two years, the Home Energy Reports delivered by Opower have resulted in measurably reduced consumption of both electricity and natural gas for residents. That contract ends in May 2013. In an effort to expand the current report format with higher value, more integrated information and education for residents, staff sought vendors to deliver an education/behavior program to save water, in addition to energy. Opower partnered with Water Smart, a company currently providing consumption-based informational reports to several water utilities, and proposed a two-step solution integrating City of Palo Alto Page 2 the educational material for residents. Two other proposals were received, but neither met the program requirements. The program included in the contract has been analyzed and is cost- effective for saving energy and water. Staff recommends that Council approve this contract for two years, at a cost of $200,000 per year. Background In June 2011, the Council adopted the 2010 Urban Water Management Plan (Staff Report 1688), which included water savings goals. In December 2012, the Council adopted aggressive 10-year electric and gas efficiency goals (Staff Report 3358). Project Description In order to achieve the long-term goals for electric and natural gas efficiency savings, the City of Palo Alto Utilities (CPAU) developed a wide range of both in-house and contractor administered programs. These programs are designed to have a wide portfolio of services for all types of customers in as many cost-effective areas as possible. Three years ago, it became clear that a new type of program to provide residents information on their energy use would help to achieve higher efficiency goals. Programs would expand from the traditional lighting and appliance replacements, which are primarily focused on home owners, to a broad range of behaviors and sustainability activities that could be used by all residents. On April 12, 2010 (CMR 191:10), a Home Energy Report (HER) program, funded by the Energy Efficiency Community Block Grant through the American Recovery and Relief Act (ARRA) was approved by City Council at a cost of $574,083 for project development and report delivery. The program included 10 bi-monthly reports to residents that were designed to be provided by mail, and by email when the customer provided that information. The vendor, Opower, Inc., provided a service to many utilities around the country that used utility usage information and publicly available databases to compare residential electric and natural gas usage with 100 closely-situated, similarly sized homes that had the same heating type. Excluded from the program for the first year was a control group of 1,000 residential customers, customers with solar electric systems installed, residents who had only been in their dwellings for a short time, residents with only one service (either electric or gas, but not both), and low income customers. The energy usage of the control group was compared with that of participating residents. The differences in the different consumption patterns were statistically analyzed, and savings were verified by a third-party consultant to be 1.46% of residential electric use and 2% of natural gas use. In addition to the verified energy savings, customer involvement in the program was high, with only about 1% of the participants asking to be removed from the program. Hundreds of other customers contacted CPAU to ask about the program and to request additional information on efficient energy use. City of Palo Alto Page 3 Due to the success of the program, the Council approved the First Amendment to the contract in December 2011 (Staff Report 2215). This amendment authorized six additional reports over an additional year at an additional cost of $250,000. In March 2012 Council approved the Second Amendment to the contract (Staff Report 2514). At no cost, residents who wished to compare their historic energy data with “friends” on Facebook were able to request that their energy data be downloaded to their personal Facebook page. Participants are able to view their own energy use and see aggregate comparisons and compare to Facebook “friends” who are also participating in the HERs program, whether or not those friends are in Palo Alto. In order to achieve the updated long-term energy efficiency goals, a residential behavioral- based program was included in the portfolio of program offerings. The natural gas utility, in particular, depends in a large part on residential behavioral changes to achieve these efficiency goals. Request for Proposals (RFP) Process An RFP for a Home Energy Use Behavior Modification Program was released on November 21, 2012, with a closing date of December 18, 2012. The RFP requested behavior modification programs for residents, preferably addressing electricity, natural gas and water reduction strategies. Of the four proposals received, the two, from Opower, Inc. and Water Smart, were superior to the others. The vendors proposed to jointly provide energy and water information at an annual cost lower than under the previous contract, which provided solely energy information. Scope of Work and Timeline of the Proposed Contract The program will continue to deliver an opt-out behavior modification program to enhance energy efficiency from residential customers in Palo Alto. The program provides residents with a letter (or email, depending on personal preference) that compares energy usage and provides normative information on how others with similarly sized and heated homes use utilities. The program has provided cost-effective electric and gas savings. In addition, innovative neighborhood comparisons, promotional information and social media integration have proven effective at reducing energy use among residential programs. The program will add water savings to the reports in two phases. During the first year in the first phase of the program, residents will receive quarterly mailed or emailed energy comparisons followed by a water comparison the following month. The Opower and Water Smart efforts on reporting and the customer dashboard on the web portal will be coordinated over the first year to allow a more integrated view of utility consumption. In addition, Opower and Water Smart will work with City staff to develop innovative ways to move as many City of Palo Alto Page 4 residents as possible from paper to emailed reports, while providing more targeted tips and recommendations to recipients of the reports. At the start of phase 2 of year two, residents will receive a complete Home Utility Usage Report (energy and water). For email recipients, information can be updated monthly, as meters are read. Opower and Water Smart will continue to work with staff and third-party program evaluators to ensure that energy and water savings are appropriately tracked and reported. This will assist greatly in meeting energy efficiency targets and water use reductions by 2020, as required by state law and local Council policies. Resource Impacts Funds for this program are included in the FY 2013 Demand Side Management budgets in the electric, natural gas and water operating funds. Policy Impacts The recommendation is consistent with Council policy and supports the electric and natural gas efficiency goals approved by City Council in December 2012, as well as the water consumption targets set in the Urban Water Management Plan, adopted in June 2011. Environmental Review Authorization of the contract with Opower, Inc. does not meet the definition of a project pursuant to Section 21065 of the California Environmental Quality Act (CEQA), thus, no environmental review is required. Attachments: Attachment A: Contract and Attachments with Opower (PDF) Opower Draft – 03.29.2013 CONFIDENTIAL Professional Services Rev. Nov. 1, 2011 1 CITY OF PALO ALTO CONTRACT NO. C13148185 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND OPOWER, INC. FOR PROFESSIONAL SERVICES This Agreement is entered into on this day of , 2013, (“Agreement”) by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and OPOWER, INC., a Delaware corporation, located at 1515 N. Courthouse Road, 8th Floor, Arlington, VA 22201 ("CONSULTANT"). RECITALS The following recitals are a substantive portion of this Agreement. A. CITY intends to provide a home reporting platform for residential customers to identify energy and water savings (“Project”) and desires to engage a consultant to design, implement and maintain a program in connection with the Project, as described in a Scope of Work (“Services”). B. CONSULTANT has represented that it has the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY in reliance on these representations desires to engage CONSULTANT to provide the Services as more fully described in Exhibit “A”, attached to and made a part of this Agreement. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree: AGREEMENT SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit “A” in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY. SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through September 1, 2015 unless terminated earlier pursuant to Section 19 of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. Subject to delays arising out of an act or omission of CITY or any other circumstance outside of the reasonable control of CONSULTANT, CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit “B”, attached to and made a part of this Agreement. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by Professional Services Rev. Nov. 1, 2011 2 C13148185 CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A”, including both payment for professional services and reimbursable expenses, shall not exceed [four hundred thousand] Dollars ($[400,000]) and is set forth in Exhibit “C”. Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit “C”. CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described in Exhibit “A” and is described in a mutually-agreed amendment or Scope of Work executed by CONSULTANT and CITY (each, together with Exhibit “A”, a “Scope of Work”). SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit invoices to the CITY describing the services performed and the applicable charges (including any reimbursable expenses), based upon the CONSULTANT’s payment schedule attached to Exhibit “C”). The information in CONSULTANT’s payment requests shall be subject to verification by CITY. CONSULTANT shall send all invoices to the City’s project manager at the address specified in Section 13 below. The City will process and pay invoices within thirty (30) days of receipt. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All of the Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it possesses the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subconsultants, if permitted, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All of the services to be furnished by CONSULTANT under this agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. Except to the extent that CITY bears responsibility for compliance with applicable law, delivering notices and obtaining consents as specified in Exhibit E, CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services. Professional Services Rev. Nov. 1, 2011 3 C13148185 SECTION 8. ERRORS/OMISSIONS. CONSULTANT shall correct, at no cost to CITY, any and all errors, omissions, or ambiguities in the work product submitted to CITY that constitute a material failure of CONSULTANT to comply with this Agreement, provided CITY gives notice to CONSULTANT. If, with respect to construction projects, CONSULTANT has prepared plans and specifications or other design documents to construct the Project, CONSULTANT shall be obligated to correct any and all errors, omissions or ambiguities discovered prior to and during the course of construction of the Project. This obligation shall remain in effect during the term of the Agreement. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds ten percent (10%) of the CITY’s stated construction budget, CONSULTANT shall make recommendations to the CITY for aligning the PROJECT design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. SECTION 10. INDEPENDENT CONTRACTOR. It is understood and agreed that in performing the Services under this Agreement CONSULTANT, and any person employed by or contracted with CONSULTANT to furnish labor and/or materials under this Agreement, shall act as and be an independent contractor and not an agent or employee of the CITY. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s obligations hereunder without the prior written consent of the city manager, except to a purchaser of substantially all of CONSULTANT’s assets or shares or a successor by merger that commits to CITY in writing to be bound by the terms of this Agreement (an “Acquisition Event”). However, in the event that CONSULTANT assigns or transfers this Agreement following or in connection with an Acquisition Event, CITY shall have the right to terminate this Agreement upon five business days written notice to CONSULTANT. Consent to one assignment will not be deemed to be consent to any subsequent assignment. Any assignment made without the approval of the city manager will be void. SECTION 12. SUBCONTRACTING. Notwithstanding Section 11 above, CITY agrees that subconsultants may be used to complete the Services. The subconsultants authorized by CITY to perform work on this Project are those used by consultant in its normal course of business, including, but not limited to, those performing printing, mailing, data storage and other data services, as well as WaterSmart Software. CONSULTANT shall be responsible for directing the work of any subconsultants and for any compensation due to subconsultants. CITY assumes no responsibility whatsoever concerning compensation of subconsultants. CONSULTANT shall be fully responsible to CITY for all acts and omissions of a subconsultant. CONSULTANT shall change or add subconsultants only with the prior approval of, or with 30 days prior written notice to, the city manager or his designee. 4 SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign the individual(s) designated in the Scope of Work to have supervisory responsibility for the performance, progress, and execution of the Services and to represent CONSULTANT during the day-to-day work on the Project. If circumstances cause the substitution of the project director, project coordinator, or any other key personnel for any reason, the appointment of a substitute project director and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s project manager. CONSULTANT, at CITY’s request, shall promptly remove from CITY premises personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property. The City’s project manager is Joyce Kinnear, Utilities Department, Marketing Division, 250 Hamilton Avenue, Palo Alto, CA 94303, Telephone (650)329-2652. The project manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. The CITY may designate an alternate project manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. Refer to Exhibit "E", which is incorporated by reference herein and forms a part of this Agreement, for complete terms and conditions of OPOWER Licensing Agreement. SECTION 15. AUDITS. CONSULTANT will permit CITY to audit, at any reasonable time during the term of this Agreement and for three (3) years thereafter, CONSULTANT’s records pertaining to matters covered by this Agreement. CONSULTANT further agrees to maintain and retain such records for at least three (3) years after the expiration or earlier termination of this Agreement, except to the extent CONSULTANT is bound by legal obligation to delete such records (including under Section 19.3 of this Agreement) at an earlier time. SECTION 16. INDEMNITY; LIABILITY. 16.1. To the fullest extent permitted by law, CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorney’s fees, experts fees, court costs and disbursements (“Claims”) resulting from, arising out of or in any manner related to third party claims arising from the breach by CONSULTANT, its officers, employees, agents or contractors, of CONSULTANT’s obligations under this Agreement. 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from Claims arising from the active negligence, sole negligence or willful misconduct of an Indemnified Party. 16.3. The acceptance of CONSULTANT’s services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. 16.4 EXCEPT AS EXPRESSLY REPRESENTED OR WARRANTED IN THIS 5 AGREEMENT, THE SERVICES, THE CONSULTANT CONTENT, THE THIRD PARTY CONTENT (AS SUCH TERMS ARE DEFINED IN EXHIBIT “E”) AND ALL OTHER DATA, MATERIALS, OR INFORMATION PROVIDED BY CONSULTANT ARE PROVIDED “AS IS,” AND CONSULTANT DISCLAIMS ANY AND ALL OTHER PROMISES, REPRESENTATIONS AND WARRANTIES, WHETHER EXPRESS OR IMPLIED. 16.5 IN NO EVENT WILL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR ANY INCIDENTAL, INDIRECT, SPECIAL, CONSEQUENTIAL OR PUNITIVE DAMAGES, REGARDLESS OF THE NATURE OF THE CLAIM. THE CUMULATIVE LIABILITY OF ONE PARTY TO THE OTHER FOR ALL CLAIMS ARISING FROM OR RELATING TO THIS AGREEMENT WILL NOT EXCEED THE FEES PAID TO OPOWER BY CITY DURING THE 12-MONTH PERIOD PRECEDING THE EVENT GIVING RISE TO SUCH CLAIM. THIS LIMITATION OF LIABILITY IS INTENDED TO APPLY WITHOUT REGARD TO WHETHER OTHER PROVISIONS OF THIS AGREEMENT HAVE BEEN BREACHED OR HAVE PROVEN INEFFECTIVE. SECTION 17. WAIVERS. The waiver by either party of any breach or violation of any covenant, term, condition or provision of this Agreement, or of the provisions of any ordinance or law, will not be deemed to be a waiver of any other term, covenant, condition, provisions, ordinance or law, or of any subsequent breach or violation of the same or of any other term, covenant, condition, provision, ordinance or law. SECTION 18. INSURANCE. 18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit "D". CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical or greater insurance coverage levels. 18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the reasonable approval of CITY’s Risk Manager in customary form (provided that the form of insurance certificate provided to CITY prior to the date hereof is deemed approved) and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days' prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT’s receipt of such notice CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY’s Purchasing Manager during the entire term of this Agreement. 6 18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT's liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, but subject to Section 16, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may terminate this Agreement, with cause, upon notice to CONSULTANT if CONSULTANT has breached a material obligation of this Agreement and has failed to cure such breach within thirty (30) days of receipt from CITY of written notice of such breach. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This Section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. The City Manager will notify CONSULTANT of any such non-appropriation of funds as soon as reasonably practicable. Upon the effectiveness of either mode of termination, CONSULTANT will immediately discontinue its performance of the Services. 19.2. CONSULTANT may terminate this Agreement or suspend its performance of the Services by giving thirty (30) days prior written notice thereof to CITY, but only in the event of a material failure of performance by CITY. 19.3. Upon such suspension or termination, CONSULTANT shall deliver to the City Manager immediately any and all CONSULTANT Utility Usage Reports (as defined in Exhibit “E”) printed but not mailed prior to termination, and delete all CITY Data (as defined in Exhibit “E”), given to CONSULTANT or its contractors, if any, in connection with this Agreement. Such materials will become the property of CITY, subject to Exhibit “E”. 19.4. Upon such termination by CITY, CONSULTANT will be paid for the Services rendered or materials delivered to CITY in accordance with the scope of services on or before the effective date (i.e., 10 days after giving notice) of termination; provided, however, if this Agreement is terminated on account of a default by CONSULTANT (pursuant to Section 19.1), CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s services which conform to the requirements of this Agreement.. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 19.4, 20, and 25. 19.5. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement. SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: 7 To CITY: Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Purchasing Manager To CONSULTANT: Attention of the project director at the address of CONSULTANT recited above SECTION 21. CONFLICT OF INTEREST. 21.1. In accepting this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subconsultants, contractors or persons having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California. 21.3. If the Project Manager determines that CONSULTANT is a “Consultant” as that term is defined by the Regulations of the Fair Political Practices Commission, CONSULTANT shall be required and agrees to file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act. SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the City’s Environmentally Preferred Purchasing policies which are available at the City’s Purchasing Department, incorporated by reference and may be amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of the City’s Zero Waste Program. Zero Waste best practices include first minimizing and reducing waste; second, reusing waste and third, recycling or composting waste. In particular, Consultant shall comply with the following zero waste requirements: 8 All printed materials provided by Consultant to City generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by the City’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post-consumer material and printed with vegetable based inks. Goods purchased by Consultant on behalf of the City shall be purchased in accordance with the City’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Office. Reusable/returnable pallets shall be taken back by the Consultant, at no additional cost to the City, for reuse or recycling. Consultant shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. This Section 23 shall not apply to printed material required to be delivered to CITY utility customers as part of the Services. SECTION 24. NON-APPROPRIATION 24.1. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 25. MISCELLANEOUS PROVISIONS. 25.1. This Agreement will be governed by the laws of the State of California. 25.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California. 25.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys' fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties. 25.4. This document represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This document may be amended only by a written instrument, which is signed by the parties. 25.5. The covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators, assignees, and consultants of the parties. 25.6. If a court of competent jurisdiction finds or rules that any provision of this Agreement 9 or any amendment thereto is void or unenforceable, the unaffected provisions of this Agreement and any amendments thereto will remain in full force and effect. 25.7. All exhibits referred to in this Agreement and any addenda, appendices, attachments, and schedules to this Agreement which, from time to time, may be referred to in any duly executed amendment hereto are by such reference incorporated in this Agreement and will be deemed to be a part of this Agreement. 25.8 If, pursuant to this contract with CONSULTANT, City shares with CONSULTANT personal information as defined in California Civil Code section 1798.81.5(d) about a California resident (“Personal Information”), CONSULTANT shall maintain reasonable and appropriate security procedures to protect that Personal Information, and shall inform City as promptly as practicable upon learning that there has been a breach in the security of the system or in the security of the Personal Information. CONSULTANT shall not use Personal Information for direct marketing purposes without City’s express written consent. 25.9 Except with respect to payment obligations hereunder, if a party is prevented or delayed in performance of its obligations hereunder as a result of circumstances beyond such party’s reasonable control, including, by way of example, Internet access outside of CONSULTANT’S control, war, terror, riot, fires, floods, epidemics, failure of public utilities or public transportation systems, or acts or omissions of governmental bodies, such failure or delay will not be deemed to constitute a breach of this Agreement, but such obligation will remain in full force and effect, and will be performed or satisfied as soon as reasonably practicable after the termination of the relevant circumstances causing such failure or delay, provided that if such party is prevented or delayed from performing for more than 90 days, the other Party may terminate this Agreement upon 30 days’ written notice. CONSULTANT shall be excused from any delay in performing or failure to perform any of its obligations under this Agreement as a result of the acts or omissions of CITY or other parties outside of CONSULTANT’s control. 25.10 The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. 25.11 This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement 10 IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement on the date first above written. CITY OF PALO ALTO ____________________________ City Manager APPROVED AS TO FORM: __________________________ Senior Asst. City Attorney OPOWER, INC. By:___________________________ Name:_________________________ Title:________________________ Attachments: EXHIBIT “A”: SCOPE OF WORK EXHIBIT “B”: SCHEDULE OF PERFORMANCE EXHIBIT “C”: COMPENSATION EXHIBIT “D”: INSURANCE REQUIREMENTS EXHIBIT “E”: OPOWER SOFTWARE AS-A-SERVICE TERMS EXHIBIT “F”: CPAU SOFTWARE AS A SERVICE SECURITY AND PRIVACY TERMS AND CONDITIONS 11 Attachment A Statement of Work This Statement of Work (“Statement of Work”) is entered into pursuant to and forms a part of the Agreement, is effective as of the date of the Agreement and shall continue in effect until [___________] unless terminated earlier in accordance with the Agreement. Capitalized terms used but not defined in this Statement of Work have the meanings assigned thereto in the Agreement. The fees associated with the services provided in this Statement of Work are set forth in Attachment A-2, and shall be payable in accordance with the Agreement. ABOUT OPOWER’S SERVICES Opower offers a Software-as-a-Service (SaaS) platform with the following characteristics: Ready-made content: Opower’s services and platform are ready-made and built upon standard templates enabling efficient Program implementation. The templates cannot be altered unless this Statement of Work (or another Statement of Work executed by the parties) expressly provides for customization. Customizations outside the scope of this Statement of Work or changes to this Statement of Work must be approved by Utility and Opower in an executed Change Order or similar amendment and may require additional fees. Ongoing enhancement: Opower continually seeks to improve its platform and services by leveraging its insight and experience working with over 70 Utility partners. Opower may suggest new approaches to further Utility Program objectives and implement enhancements to its SaaS platform over-time. The services to be provided under this Statement of Work are described in detail below. For purposes of this document only, “Program” shall mean the services to be provided by Opower pursuant to this Statement of Work. BEHAVIORAL ENERGY SAVINGS PROGRAM Opower and Utility will work together to continue a behavioral energy savings Program, in the same manner and according to the same specifications that were followed (except as expressly stated herein) under Contract (C10134341), dated as of May 3, 2010, between Utility and Opower, that targets up to 20,000 Utility electric and gas customers to receive access to Opower Energy Reports and access to the Opower Website Portal (“Designated Customers”). In addition to the behavioral energy savings program, Opower will work with a third-party contractor to provide water reporting services to up to 20,000 Utility customers. The services to be provided are described in section 5 and Attachment A-2 of this SOW. The behavioral energy savings Program is described herein as the “HER Program” and the water reporting services program is described herein as the “WaterSmart Program.” The provisions set forth in Sections 1 to 4 and Exhibit A-1 of this SOW relate solely to the HER Program. 12 Program Offerings The HER Program includes Opower’s: Printed Home Energy Reports (HER) Email Home Energy Reports Customer Web Portal Customer Service Application Social Application See the Product Glossary, Attachment A-1, for more information on the above HER Program offerings. HER Program Scope The following table summarizes the number of Designated Customers to be targeted during the HER Program. Customer Channel Number of Designated Customers* HER Program Year 1** HER Program Year 2 Customer Web Portal Up to 20,000 Designated Customers Up to 20,000 Designated Customers Home Energy Report (Print) Up to 20,000 @ 4 reports per Designated Customer Up to 20,000 @ 4 reports per Designated Customer Home Energy Reports (EMAIL) Up to ~5,000 customers @ 12 emails per Designated Customer Up to ~5,000 customers @ 12 emails per Designated Customer Social Energy Application All Utility customers (opt-in) All Utility customers (opt-in) CSR Application All Utility CSRs All Utility CSRs *Note: The actual number of Designated Customers may be affected by attrition, opt-outs, customer eligibility and data availability. Otherwise, the number of Designated Customers targeted to receive Home Energy Reports or access to the Website Portal as set forth in the table above and the pricing there of set forth in Exhibit A-2 may be modified only pursuant to an amendment to this Statement of Work or a new change order signed by Utility and Opower. ** Program Year 1 is estimated to commence in July 2013, with timing of refill work (described in Section 4) to be agreed with Utility following contract signature, however the timing of the refill work shall not affect the associated payment schedule. 13 HER PROGRAM IMPLEMENTATION Data will be provided to Opower in the same manner and according to the same specifications that were followed under the Contract (C10134341), dated as of May 3, 2010, between Utility and Opower. Opower's data transfer specifications (titled "Opower Data Transfer Standards" have been provided to CPAU prior to the date hereof). In addition, the following provisions shall apply: Web Portal Support: Opower supports the current major release, plus the previous major release, for the Internet Explorer, Firefox, Chrome and Safari browsers. The Web Portal, Customer Service Interface and other web sites maintained by Opower may not perform properly in other web browsers and older releases of supported web browsers. Opower will implement a Utility promotional module on up to 2 Home Energy Reports per customer per year. This type of module can be used for targeted marketing of EE, Demand Response and other Utility programs, including new rate pricing plans. Opower will work with Utility to determine module content. Opower will design and Utility will approve module content. The module gives Utility the ability to run one program promotion module in any of the "swappable" Home Energy Report slots. Only one promotion per Home Energy Report can be run at any one time. HER PROGRAM RESULTS & EVALUATION Opower will deliver HER Program results to Utility on a quarterly basis. Reporting will include: Each quarter, Program information delivered via email or the internet containing: Subscription metrics, including: Number of Designated Customers in the program Number and rate of opt-outs Energy savings (percent and absolute) by month and quarter. The first results will not be available until after 3 full months of Home Energy Report generation has occurred. Website usage statistics, including: number of visitors, page-views and accounts created average time on site number of tip actions and commitments made In addition to standard reporting, Opower will also provide results on "smart metrics" (e.g., Neighbor comparison status, Neighbor rank quintile) as they become available. HER PROGRAM REFILL SCHEDULE Opower anticipates refilling the current Program to meet the targeted 20,000 Designated Customers. This will take 9 weeks to deploy, with timing to be agreed between Utility and Opower upon contract signature. The total time required to deploy the refill will depend on whether additional time is required for Utility to complete additional tasks (such as independent user acceptance testing), and whether more than one approval party is required. Opower will work closely with Utility to establish firm dates to replace approximations by the time of the refill kickoff. 14 Refill assumptions In addition to any assumptions noted above, the program refill activities and schedule assume: New Designated Customers’ initial Home Energy Report will include an accompanying Welcome Insert As of the program refill kickoff, Utility will assign technologically-qualified professionals with knowledge of Utility’s billing and other related systems to conduct the work required in support of the Program. WATERSMART IMPLEMENTATION Working with its subcontractor, WaterSmart Software, Inc. (“WaterSmart”), Opower will provide water reporting services in the form of the WaterSmart Platform to up to 20,000 residential customers. Details regarding such services are set out in Exhibit A-2. Utility acknowledges and agrees that the WaterSmart Program and the HER Program are separate and distinct (including but not limited to: website, paper reports and email communications) and do not link in any meaningful way. Accordingly, the platforms are not integrated into one another, and there is no assurance each of the platforms’ user experience, log-in and access protocols, deployment and support methodologies or similar matters will be similar or integrated. In addition, Opower will lead co-ordination with WaterSmart so that the timing of communications sent for each Program is optimized. ADDITIONAL OBLIGATIONS Utility will provide to Opower all documentation and data reasonably requested by Opower to allow Opower to perform the services specified in this Statement of Work. Utility is responsible for obtaining such consents from its customers as may be required by applicable laws, rules and regulations or Utility’s policies for Opower to contact Utility’s customers through each communication channel specified in this Statement of Work (e.g., direct mail, email and outbound telephone calls). Utility’s inability to obtain such consents may delay the Program or limit the availability of such communication channels. Opower will be excused from any delay in performing or failure to perform any of its obligations under this Statement of Work as a result of the acts or omissions of Utility or any governmental authority, including changes in applicable laws, rules or regulations. 15 SOW Exhibit A-1 OPOWER PRODUCT GLOSSARY This glossary provides a high-level description of the Opower platform. It indicates features that require AMI and rate data. There may be additional third-party and historical data requirements for some features. Consult the more detailed Opower “Technical Briefs” to learn more, in particular: Opower Web Portal Technical Brief Opower Reports Technical Brief Web Portal The Opower Web Portal allows customers to explore their energy usage in detail and receive energy efficiency information. A normative comparison provides a comparison between the customer, their efficient neighbors and all of their neighbors. A customer can set a commitment to reduce their consumption, see comparisons between their bills and explore an interactive time series data display of their billing periods that fall into the last 12 months. A library of energy recommendations and an Energy Questionnaire (audit) help customers learn how to reduce their energy consumption. Customer Service Interface The Customer Service Interface (CSI) provides Customer Service Representatives (CSRs) with information to address customer requests regarding the Opower platform. The CSI is available with standalone account management, or CSRs can use their existing utility credential to log into the application via a SAML Single Sign On implementation, if available. Printed Home Energy Reports Printed reports are paper reports sent to a customer’s home via the mail. They include a normative comparison that compares a customer to all neighbors and efficient neighbors. Configurable introductory and promotional modules may also be included. Email Reports Email reports are designed specifically to engage recipients via the email channel. They include a normative comparison that compares a customer to all neighbors and efficient neighbors. Configurable introductory and promotional modules may also be included. 16 SOW Exhibit A-2 WaterSmart Program Executive Summary WaterSmart Software’s (“WaterSmart”) mission is to help water utilities make it easier for their residential customers to conserve water. WaterSmart will deploy the WaterSmart to Utility in the manner described in this Exhibit A-3. In support of the WaterSmart Program, WaterSmart will employ water use reports (the “Home Water Report” or “Report”) and Web-based applications. WaterSmart will launch Web-based applications that Customers and Utility staff can access at their convenience, referred to respectively as “WaterInsight Portal” and “Water Efficiency Dashboard” Web applications. The aforementioned Reports and Web-based services may present customer-specific water use data and comparisons and customized water saving recommendations. WaterSmart will send print Home Water Reports to up to 20,000 enrolled accounts. Each account will receive up to four (4) Home Water Reports per year, for a total of up to 80,000 Reports annually. WaterSmart will deliver Home Water Reports via email to accounts that register on the WaterInsight Portal. The Program’s goals are to reduce annual water usage and increase customer engagement. 1. Scope of Work Utility will designate a single point of contact to oversee the completion of the tasks assigned to Utility and approve all materials. Utility’s contact will work with the assigned WaterSmart project manager to ensure the successful implementation of this program. 1.1 — Participant Selection WaterSmart will randomly select an initial set of up to 20,000 participants to be enrolled in the Program. The initial participants will receive Home Water Report(s) and WaterInsight Portal access. Additionally, WaterSmart will select a randomized control group consistent with the minimum control group size required to measure program results. This group will not receive any communications from WaterSmart, including Home Water Reports or access to the WaterInsight Portal. All enrolled households initially will be sent print Home Water Reports by mail. WaterSmart will begin to send email Home Water Reports as accounts register online at WaterSmart’s WaterInsight Portal with valid email addresses. 1.2 — Participant Exclusions WaterSmart expects to exclude certain households from the initial set of accounts, including based on the following criteria: 17 Zero Reads — residences with more than one meter read of 0 gallons over the last 2 years Suspect Data — accounts that have at least one data point over the last 2 years that is considered to be so inaccurate or abnormal as to preclude its inclusion in the study. Incomplete or No Data — residences that have incomplete or no meter read records over the last 2 years Non Resident Homeowners — residences whose billing and service addresses do not match, frequently indicating non-resident homeowners and rent-occupied properties where there is less of an incentive for implementing water efficiency measures Inactive Accounts — accounts with no active water service connection 2. Program Implementation 2.1 — Print Home Water Reports WaterSmart will produce and print customized Home Water Reports to separately mail to each Customer. Initially, WaterSmart will send print Reports to up to 20,000 single-family accounts for a total of up to four (4) Reports per household per year. WaterSmart will send up to 80,000 total print Home Water Reports per year. Each of the print Reports will contain the design and content as outlined in Appendix A. 2.2 — Email Home Water Reports WaterSmart will send email Home Water Reports to households as they register on the WaterInsight Portal. Each email Home Water Report will contain the design and content as outlined in Appendix B. 2.3 — Customer Service Support Utility shall have the primary responsibility for providing customer service to its Customers. WaterSmart will provide a list of Frequently Asked Questions to both enrolled Customers and Utility staff to facilitate this process. WaterSmart also provides the Customer Support section within the Water Efficiency Dashboard, which is designed to help customer service representatives respond to Customers. WaterSmart will provide service and support to Utility’s staff regarding their technical questions about WaterSmart’s WaterInsight Portal and Water Efficiency Dashboard Web applications and Home Water Reports between the hours of 8 a.m. and 5 p.m. PST, +415-789-6061 on Monday thru Friday, excluding federal holidays. Utility may direct all technical questions during and outside of business hours to support@watersmartsoftware.com. For issues arising after hours, WaterSmart will address those questions the following business day. For clarity, this does not include questions related to hardware, software, third party services, or other technical questions beyond the specific scope of the WaterInsight Portal Web application, Water Efficiency Dashboard or Home Water Reports. WaterSmart’s project manager will work with Utility’s primary contact to assist in addressing additional customer issues. All inquiries from Utility customers outside the scope indicated above, including without limitation questions about water data, will be directed to Utility. 18 2.4 — Marketing and Advertising Utility agrees to promote registration for the WaterInsight Portal through its communication tools, including but not limited to, an introductory letter promoting the WaterSmart Program, its website, bills, bill inserts and newsletters. Utility agrees to allow WaterSmart to use Utility’s name in promotional materials including, but not limited to, a name and logo listing on the corporate website of WaterSmart and in press releases and in conversations with the public, investors, partners and media. 3. Format and Design of Web-Based Applications and Reports 3.1 — Design All of the customer-facing materials that WaterSmart develops for Utility, including the print and email Home Water Reports and the WaterInsight Portal, are based on existing WaterSmart product templates. These materials will be white-labeled with Utility’s name and logo. Content and design of all materials are subject to change over time, as WaterSmart incorporates new features. The format, design and content of print and email Home Water Reports will be based on existing WaterSmart documents, current versions of which are shown in Appendices B1 and B2, respectively. The WaterInsight Portal Web application design will be based on WaterSmart’s existing portal, a current version of which is shown in Appendix B3. The Water Efficiency Dashboard design will be based on WaterSmart’s existing online utility dashboard, a current version of which is shown in Appendix B4. Every page on the WaterInsight Portal will include a link to WaterSmart’s privacy policy and terms and conditions. Such files will be located on the Utility’s WaterInsight Portal server. The utility-facing Water Efficiency Dashboard features WaterSmart branding. Dashboard pages may include a credit to WaterSmart (including the WaterSmart logo), a link to the WaterSmart Web site, and a link to WaterSmart’s privacy policy and terms and conditions. 3.2 — Customization of Home Water Reports & Web Applications WaterSmart provides a SaaS (Software-as-a-Service) solution. The Home Water Reports provided by WaterSmart, in coordination with Utility, shall contain features such as illustrated in Appendix B1. Product content may be customized to the extent permissible by the SaaS platform, at Utility’s option, at the start of the program. Utility has some flexibility to add or substitute content, as applicable to the then current design of the Home Water Report, which will be outlined during the implementation phase – such as availability and/or value of the Utility’s incentive/rebate programs. 19 The WaterSmart project manager will assist Utility in customizing this content at the start of the Program. The first year’s Home Water Reports will be generated from the initially approved content. No additional approvals will be required over the course of the year. If reports are halted for any reason, permission from Utility and Opower will be needed to re-start sending. 4. Web Applications 4.1 — WaterInsight Portal and Water Efficiency Dashboard WaterSmart will launch the WaterInsight Portal and Water Efficiency Dashboard Web applications prior to the delivery of the first Home Water Reports. WaterSmart will update the Web applications on a monthly basis, contingent upon Utility’s delivery of the required data files for each billing period. 4.2 — WaterInsight Portal url The WaterInsight Portal Web application provided by WaterSmart shall be accessible to all enrolled accounts. The WaterInsight Portal Web application initially shall be assigned the following URL address: http://[CityofPaloAltoUtilities].watersmartsoftware.com Any additional URLs as mutually agreed upon by both parties also may be implemented. Additional costs may be incurred if WaterSmart is requested to register a new domain name. 4.2 — Water Efficiency Dashboard The Water Efficiency Dashboard Web application, provided by WaterSmart and viewable only by Utility staff, shall contain content such as illustrated in Appendix B4. 5. Data Specifications, Procurement, Security and Transfer Protocols 5.1 — Data Specifications & Transfer Protocols WaterSmart will work with Utility to provide file specifications that maximize the ease of data extraction on Utility’s behalf and optimize the process of data integration on WaterSmart’s behalf. In general, the Utility will provide two files, one that describes residences and accounts (“the Residence File”) and another that details consumption history and billing amounts (the “Consumption File”). In the Residence File, WaterSmart will request such fields as, but not limited to: Account Number Account Sequence Number Property APN, where available 20 Meter Size Service Address Billing Address Customer Name Customer Email, where available In the Consumption File, WaterSmart will request, for at least the last two years, but ideally for five to ten years in the past, such fields as, but not limited to: Account Number Account Sequence Number Meter I.D. (serial number) Current Meter Read Previous Meter Read Days in Billing Cycle Consumption Bill and water allocation details as mutually agreed The above list of fields is intended to serve as an example. During the project kickoff process, WaterSmart and Utility will work together to discuss the ramifications of the presence or absence of data in the feeds. WaterSmart will provide Utility with a private, password-protected FTP destination for regular delivery of the data. This FTP site will be hosted on WaterSmart’s server infrastructure. The data transfer process for the WaterSmart Program is separate and distinct from the data transfer process for the HER Program. Data for the WaterSmart Program will be sent directly to WaterSmart via WaterSmart’s standard methods as described herein. 6. Implementation Meetings At the start of the Program, WaterSmart will conduct an in-person initial implementation meeting with Utility. The standard training will orient Utility staff involved in the Program with the Reports and Web Applications. WaterSmart suggests Utility include a representative from each functional group that will be involved with the implementation of the program. Additional training may be available subject to the mutual agreement of the parties and may require additional compensation. Prior to launch, WaterSmart recommends weekly phone calls or in-person meetings to review progress and open items. Following initial implementation, WaterSmart will meet with Utility to report on program results alongside Opower according to the schedule described above in Appendix A: Section 3: “HER Program Results and Evaluation.” 21 7. Project Management In order to ensure adherence to the agreed-upon schedule and budget WaterSmart will designate an individual to serve as a Project Manager, who will, among other responsibilities: Organize initial project kickoff meeting Monitor the status of all deliverables Provide regular project status report updates Prepare meeting agendas (including input from Utility) Monitor engagement rates and message effectiveness Communicate project feature requests to WaterSmart team WaterSmart Project Team Project Management: Peter Yolles IT and Analytics Program Management: Doug Flanzer Engagement Manager: Ora Chaiken Program Reporting WaterSmart will co-ordinate with Opower to present results on a quarterly basis, as part of Opower’s Program results reporting. WaterSmart’s reporting metrics will be defined through the implementation phase. 22 Exhibit B Schedule Implementation Schedule WaterSmart proposes the following indicative schedule to complete all work required to launch the Program. The dates listed below represent the number of weeks from the date of a signed Professional Services Agreement between WaterSmart and Utility. Description Dates Step 1: Finalize our Partnership Identify staff involved & clarify roles Schedule weekly status calls Complete Pre-Launch Questionnaire Weeks 1 - 4 Step 2: Share Your Data Export water consumption & residence data to WaterSmart Export program participation data to WaterSmart Export existing rebate/incentive program information Finalize the participation & control groups Weeks 3-9 Step 3: Approve the Content Approve written copy of water-saving recommendations Approve any Utility-specific or special promotions Approve the welcome letter (if selected) Approve the Customer Insight Survey (if selected) Approve the envelope messaging and email subject lines Weeks 3-9 Step 4: Implementation Implement Product Quality Assurance and Testing Weeks 10-14 Step 5: Train Your Team WaterSmart will train your customer service representatives WaterSmart will prepare Utility staff to answer frequently asked questions about the Program WaterSmart will teach your conservation team to use the Water Efficiency Dashboard Weeks 14-16 The following appendices are provided as illustrative examples. 23 Appendix B-1 — Print Home Water Report 24 Appendix B-2 — Email Home Water Report 25 26 Appendix B-3 — WaterInsight Portal 27 Appendix B-4 — Water Efficiency Dashboard Professional Services Rev Nov. 1, 2011 18 C13148185 Exhibit C Compensation Utility shall pay Opower $77,560 upon execution of this Order Form. Opower will invoice Utility for such amount upon execution of this Order Form. Thereafter, Opower will invoice Utility for each payment set forth in the table below at least 30 days prior to each Payment Due Date set forth in the table below, and Utility will pay each such invoice on or before the applicable Payment Due Date. Total contract is not to exceed $400,000 for two years. Payment notes: Print Management, Printing & Mailing: Fee calculation for Print Management, Printing & Mailing is based upon one-page double-sided 8.5” by 11” Home Energy Reports delivered via USPS standard mail at applicable freight and postage prices. Opower may increase the fees by not more than an amount equal to any rate increase attributable to a change of mail classification by USPS and/or the percentage increase of the USPS rate at the applicable mail classification. Additional services may be subject to additional Fees as quoted by Opower. All Fees are non-refundable except as expressly provided herein. Program Year 1 Payment due dates:Contract Signature Program Launch Launch + 3 mos Launch + 6 mos Launch + 9 mos Year 1 Total Set up & Configuration $25,000 Program License & Fees $42,200 Print & Mail Fees $12,200 $12,200 $12,200 $12,200 Total $67,200 $12,200 $12,200 $12,200 $12,200 $116,000 Program Year 2 Payment due dates:Launch + 12 mos Launch + 15 mos Launch + 18 mos Launch + 21 mos Year 2 Total Set up & Configuration $0 Program License & Fees $79,560 Print & Mail Fees $12,200 $12,200 $12,200 $12,200 Total $91,760 $12,200 $12,200 $12,200 $128,360 $244,360 Program Year 1 Payment due dates:Contract Signature Program Launch Launch + 3 mos Launch + 6 mos Launch + 9 mos Year 1 Total Set up & Configuration $10,360 Data Processing $2,000 $2,000 $2,000 $2,000 Print & Mail Fees $17,910 $15,910 $15,910 $15,910 Total $10,360 $19,910 $17,910 $17,910 $17,910 $84,000 Program Year 2 Payment due dates:Launch + 12 mos Launch + 15 mos Launch + 18 mos Launch + 21 mos Year 2 Total Set up & Configuration $0 Data Processing $2,000 $2,000 $2,000 $2,000 Print & Mail Fees $15,910 $15,910 $15,910 $15,910 Total $17,910 $17,910 $17,910 $17,910 $71,640 $155,640 Grand Total: Grand Total: Opower Program Payment Table WaterSmart Program Payment Table Professional Services Rev Nov. 1, 2011 19 C13148185 EXHIBIT “D” INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY (30) DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS” A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. Professional Services Rev Nov. 1, 2011 20 C13148185 B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, CONSULTANT OR THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE CONTRACTOR SHALL PROVIDE CITY AT LEAST A FIVE (5) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. NOTICES SHALL BE MAILED TO: PURCHASING AND CONTRACT ADMINISTRATION CITY OF PALO ALTO P.O. BOX 10250 PALO ALTO, CA 94303 Professional Services Rev Nov. 1, 2011 18 C13148185 EXHIBIT “E” OPOWER LICENSING AGREEMENT AND SOFTWARE-AS-A-SERVICE TERMS 1. DEFINITIONS. Certain capitalized terms used in Exhibit, not otherwise defined in the Agreement, shall have the meanings set forth below. 1.1 “Administrative User” means an employee or contractor of CITY to whom CITY has assigned a unique identification number for access to the CONSULTANT Customer Service Application and the CONSULTANT Website Portals for CITY’s own use as specified in a Scope of Work. 1.2 “Brand” means any trademarks, service marks, trade names, domain names, logos, business names, product names and slogans, and all registrations and applications for registration thereof owned by or licensed to a Party or to which the Party has rights. 1.3 “Customer” means any current or former CITY utility customer. 1.4 “CITY Data” means any data or information supplied by CITY to CONSULTANT under this Agreement, including Personal Information provided by CITY to CONSULTANT. CITY Data excludes CONSULTANT Content and Third Party Content. 1.5 “CONSULTANT Analytics” means any data or information collected or processed by CONSULTANT under this Agreement and the results and data from any analysis, calculations, or processing thereof, which shall in no event include Personal Information. 1.6 “CONSULTANT Content” means (i) all content, including any text, copy, images, graphics, designs, photos, video, sound, works of authorship, data, statistics, analyses, forecasts, and any similar information that is either owned, developed or licensed by CONSULTANT and that CONSULTANT makes available through the Services and (ii) CONSULTANT Analytics. 1.7 “CONSULTANT Customer Service Application” means the online portal(s) provided by CONSULTANT or its subcontractor enabling customer service staff to access the CONSULTANT Utility Usage Reports and other features and functions of the Services. 1.8 “CONSULTANT Program Report” means the evaluations of the CONSULTANT Utility Usage Reporting Systems as further defined in the Scope of Work. 1.9 “CONSULTANT Utility Usage Report” means the paper and emailed reports prepared by CONSULTANT (with respect to energy usage) and CONSULTANT’s subcontractor (with respect to water usage) and sent to Customers, as further defined in the Scope of Work. 1.10 “CONSULTANT Utility Usage Reporting Systems” means (i) CONSULTANT Utility Usage Reports; (ii) the CONSULTANT Website Portal; and (iii) the CONSULTANT Customer Service Application. 1.11 “CONSULTANT Intellectual Property” means: (i) any proprietary work; (ii) any system owned, licensed, or developed by CONSULTANT, including CONSULTANT Content; (iii) any analysis, compilation, aggregation, derivative work or work of authorship created by CONSULTANT; (iv) data independently developed or created by CONSULTANT; and (v) data entered by Customers via the CONSULTANT Website Portal, so long as such data does not include Personal Information. 1.12 “CONSULTANT Terms of Use” means any applicable CONSULTANT terms of service (including the CONSULTANT privacy policy) for the Customer Service Application or the CONSULTANT Website Portal, which CONSULTANT may amend from time to time. 1.13 “CONSULTANT Website Portals” means web-based features created and maintained by CONSULTANT (with respect to energy usage) and CONSULTANT’s subcontractor (with respect to water usage) to provide Customers with information about their utility usage. 1.14 “Designated Customers” means the group of Customers that, pursuant to a Scope of Work, is targeted to receive the CONSULTANT Utility Usage Reports or access to the CONSULTANT Website Portals. 1.15 “Third Party Content” means all content received by CONSULTANT from a third party (other than CITY) or made available by a third party (other than CITY) through the Services, including any text, images, graphics, designs, photos, video, sound, works of authorship, data, statistics, analyses, forecasts and similar information. 2. SCOPE OF WORK; ACCESS AND USE 2.1 Access to CONSULTANT Website Portals. Subject to the terms and conditions of this Agreement, CONSULTANT hereby grants to CITY a non-exclusive, non-transferable right to permit access to the CONSULTANT Website Portals for the number of Designated Customers specified in the Scope of Work. CONSULTANT may deny access to any Designated Customers who have not agreed to comply with or violate the CONSULTANT Terms of Use. 2.2 Access to CONSULTANT Customer Service Application. Subject to the terms and conditions of this Agreement and subject to the Scope of Work, CONSULTANT hereby grants to CITY a non-exclusive, non- sublicensable, non-transferable right to access the features and functions of the CONSULTANT Customer Service Application during the term specified in the applicable Scope of Work, solely for use by Administrative Users for the purpose specified in the Scope of Work and pursuant to reasonable access procedures to be specified by CONSULTANT. 2.3 Access to CITY Data. Subject to the terms and conditions herein, CITY grants CONSULTANT a worldwide, fully-paid non-exclusive, non- transferable, royalty-free license to (i) use, reproduce, adapt, modify, translate and distribute the CITY Data for the purpose of performing the Services and CONSULTANT’s obligations under this Agreement, including, without limitation, the creation of CONSULTANT Analytics (ii) use individual Customer utility usage and similar data in the CITY Data (which, for the avoidance of doubt, shall not include any Personal Information) during the Term and for a period of three years thereafter. CONSULTANT and CITY shall comply with the requirements set out in Exhibit “F” to the Agreement. 2.4 Brand Licenses. The Parties shall cooperate with each other to develop a mutually agreeable strategy for co-branding the CONSULTANT Utility Usage Reports and the CONSULTANT Website Portals. Notwithstanding the foregoing, (i) CITY grants to CONSULTANT a non-exclusive, non-sublicenseable, non-transferable, royalty-free, fully-paid license to use the CITY Brand during the Term in accordance with such reasonable CITY branding guidelines as CITY may specify for the limited purposes of performing CONSULTANT’s obligations under this Agreement, (ii) CONSULTANT may identify CITY as an CONSULTANT customer and use the CITY Brand for marketing and sales purposes, provided that such identification shall not state an endorsement by CITY; and (iii) CONSULTANT may identify the Services with the CONSULTANT Brand and “runs on Opower” or other similar phrasing and include in CONSULTANT Content reasonable indicia of its copyrights and other intellectual property rights therein. Except as expressly permitted by this Agreement, each Party shall have a written right of approval over the use of its Brand by the other Party, not to be unreasonably withheld. 2.5 Usage Restrictions. (i) CITY shall (a) not decompile, disassemble, reverse engineer or otherwise attempt to obtain or perceive the source code from which any software component of the Services is compiled or interpreted; (b) not modify the Services, CONSULTANT Content, Third Party Content or the CONSULTANT Utility Usage Reports, or create any derivative product from any of the foregoing, except with the prior written consent of CONSULTANT; (c) not assign, sublicense, sell, resell, lease, rent or otherwise transfer or convey, or pledge as security or otherwise encumber, CITY’s rights under this Agreement; and (d) ensure that its use of the Services complies with all applicable laws, statutes and regulations. CITY shall use the Services and all CITY Data solely in compliance with all applicable laws, regulations or rules, including the CONSULTANT Terms of Use. (ii) CITY shall be responsible for the security of its Administrative Users’ accounts and passwords, and shall notify CONSULTANT immediately Professional Services Rev Nov. 1, 2011 19 C13148185 of any unauthorized use of any password or account or any other known or suspected breach of security. CITY shall be responsible for the acts or omissions of its Administrative Users in connection with the use of, and access to, the CONSULTANT Customer Service Application, and any such act or omission which would constitute a breach of this Agreement if undertaken by CITY, shall be deemed to be a breach by CITY hereunder. 2.6 Retained Rights; Ownership. (i) Subject to the rights granted in this Agreement, CITY retains all right, title and interest in and to the CITY Brand and CITY Data, and CONSULTANT acknowledges that it neither owns nor acquires and hereby disclaims any rights in and to the CITY Brand or CITY Data not expressly granted by this Agreement. (ii) Subject to the rights granted in this Agreement and except to the extent set forth in Section 2.6(iii), (a) CONSULTANT retains all right, title and interest in and to the Services, the CONSULTANT Content and the CONSULTANT Intellectual Property, and (b) CITY acknowledges that it neither owns nor acquires and hereby disclaims any rights in and to the foregoing not expressly granted by this Agreement. (iii) CITY owns (a) the CONSULTANT Program Reports; and (b) each tangible CONSULTANT Utility Usage Report created as part of these Services, including any sample reports, and all right, title and interest therein, provided that CONSULTANT retains ownership in the: (I) design, look, and feel; (II) graphical elements; (III) content other than the CITY Data; and (IV) any intellectual property therein. Each of (I), (II), (III) and (IV) are CONSULTANT Intellectual Property. Notwithstanding the foregoing, nothing in this section shall prevent CONSULTANT from using the CONSULTANT Program Reports for internal business purposes. 2.7 Suggestions. CITY hereby grants to CONSULTANT a royalty-free, worldwide, irrevocable, perpetual license to use and incorporate into the Services any suggestions, enhancement requests, recommendations or other feedback provided by CITY or Customers relating to the operation of the Services. 3. UTILITY OBLIGATIONS. 3.1 CITY Data. CITY shall provide the CITY Data to CONSULTANT in the format and at the times specified in the Scope of Work. Unless such breach results from Consultant’s negligence, CONSULTANT shall not be liable for, (i) ensuring that CITY has obtained all consents and given all notices required under applicable law, rules, regulations and CITY policies to authorize the communication with its Customers and use of CITY Data contemplated by this Agreement and (ii) any breach of this Agreement resulting from the CITY Data, including the delivery, accuracy, completeness and consistency thereof. CITY shall make available in a timely manner at no charge to CONSULTANT all content, graphic files, CITY Brand information and other information and resources of CITY reasonably required by CONSULTANT for the performance of its obligations under this Agreement. Professional Services Rev Nov. 1, 2011 19 C13148185 EXHIBIT “F” SOFTWARE AS A SERVICE SECURITY AND PRIVACY TERMS AND CONDITIONS This Exhibit is a part of the City of Palo Alto’s Professional Services Agreement or any other contract entered into by and between the City of Palo Alto (the “City”) and Opower, Inc. (the “Consultant”) for the provision of Software as a Service services to the City (the “Agreement”). In order to assure the privacy and security of the personal information of the City’s customers and people who do business with the City, including, without limitation, vendors, utility customers, library patrons and other individuals and businesses, who are required to share such information with the City, as a condition of receiving services from the City or selling goods and services to the City, including, without limitation, the Software as a Service services provider (the “Consultant”) and its subcontractors, if any, including, without limitation, any Information Technology (“IT”) infrastructure services provider, shall design, install, provide, and maintain a secure IT environment, in the manner described below, while it renders and performs the Services and furnishes goods, if any, described in the Statement of Work (Exhibit A to the Professional Services Agreement), to the extent any scope of work implicates the confidentiality and privacy of the personal information of the City’s customers. The Consultant shall fulfill the data and information security requirements (the “Requirements”) set forth in Part A below. A “secure IT environment” includes: (a) the IT infrastructure, by which the Services are provided to the City, including connection to the City's IT systems; (b) the Consultant’s operations and maintenance processes needed to support the environment, including disaster recovery and business continuity planning; and (c) the IT infrastructure performance monitoring services to ensure a secure and reliable environment and service availability to the City. “IT infrastructure” refers to the integrated framework, including, without limitation, data centers, computers, and database management devices, upon which digital networks operate. In the event that, after the Effective Date, the Consultant reasonably determines that it cannot fulfill the Requirements, the Consultant shall promptly inform the City of its determination and submit, in writing, one or more alternate countermeasure options to the Requirements (the “Alternate Requirements” as set forth in Part B), which may be accepted or rejected in the reasonable satisfaction of the Information Security Manager (the “ISM”). Part A. Requirements: The Consultant shall at all times during the term of any contract between the City and the Consultant: (a) Appoint or designate an employee, preferably an executive officer, as the security Professional Services Rev Nov. 1, 2011 20 C13148185 liaison to the City with respect to the Services to be performed under this Agreement. (b) Provide a full and complete response to the City’s Supplier Security and Privacy Assessment Questionnaire (the “Questionnaire”) to the ISM, and also report any major non-conformance to the Requirements, as and when requested. The response shall include a detailed implementation plan of required countermeasures, which the City requires the Consultant to adopt as countermeasures in the performance of the Services. In addition, upon request by the City (but not more frequent than as of the annual anniversary date of this Agreement) the Consultant shall report to the City any major changes to the IT infrastructure described in the system description included in Consultant’s Independent Audit Report (as defined below in clause (o)) by making such Independent Audit Report (including the system description therein) available to the City in a manner permitted under AICPA guidelines. (c) Have adopted and implemented information security and privacy policies based on a. American Institute of Certified Public Accountants (AICPA) Service Organization Control 2 (SOC 2) principles of security and confidentiality (the “SOC2 Principles”) (http://www.aicpa.org/InterestAreas/InformationTechnology/Resources/Trus tServices/Pages/Trust%20Services%20Principles—An%20Overview.aspx) or b. NIST Management Framework Special Publication 800-53 (csrc.nist.gov/publications/nistpubs/) and NISTIR, 7628 Guidelines to SmartGrid cybersecurity (http://www.smartgrid.gov/sites/default/files/doc/files/NISTIR_7628_Guideli nes_for_Smart_Grid_Cyber_Security_Vol_3_201001.pdf). (d) Conduct routine data and information security compliance training of its personnel that is appropriate to their role. (e) Develop and maintain detailed documentation of the IT infrastructure, including software versions and patch levels. (f) Develop an independently verifiable process, consistent with industry standards, for performing professional and criminal background checks of its employees that (1) would permit verification of employees’ personal identity and employment status, and (2) would enable the immediate denial of access to the City's confidential data and information by any of its employees who no longer would require access to that information or who are terminated. (g) Upon request by the City (but not more frequent than as of the annual anniversary date of this Agreement), provide a list of IT infrastructure components included in the system description in Consultant’s Independent Audit Report by making such Independent Audit Report (including the system description therein) available to the City in a manner permitted under AICPA guidelines in order to verify whether the Consultant has met or has failed to meet any objective terms and conditions of this Agreement. (h) Implement access accountability (identification and authentication) architecture and support role-base access control (“RBAC”) and segregation of duties (“SoD”) mechanisms for all personnel, systems and software used to provide the Services. “RBAC” refers to a computer systems security approach to restricting access only to authorized users. “SoD” is an approach that would require more than one individual to complete a security task in order to promote the detection and prevention of fraud and errors. Professional Services Rev Nov. 1, 2011 21 C13148185 (i) Assist the City in undertaking annually an assessment to reasonably assure that it has implemented measures in accordance with industry best practices applicable to secure coding and secure IT architecture. (j) Provide and maintain secure intersystem communication paths that would ensure the confidentiality, integrity and availability of the City's information. (k) Deploy and maintain such IT system upgrades, patches and configurations (including emergency security patches) conforming to current patch and/or release levels as may be appropriate based on its risk assessment of the vulnerability within twenty four (24) hours of such assessment. (l) Provide for the timely detection of, response to, and the reporting of security incidents, including on-going incident monitoring with logging. (m) Notify the City within twenty four (24) hours of detecting and validating a security incident that results in the unauthorized access to or the misuse of the City's confidential data and information. (n) Inform the City that any third party service provider(s) who receive personally identifiable information of the Cirt meet(s) all of the Requirements. (o) Either a. obtain a Service Organization Control 2 (SOC 2) type 2 report under Attestation Standard 101 (AT 101) related to the American Institute of Certified Public Accountants (AICPA) Trust Services Principles of confidentiality and security issued by an independent auditor of national reputation or another report under a standard recognized under industry standards as functionally equivalent (“Independent Audit Report”); or b. perform security self-audits on a regular basis and not less frequently than on a quarterly basis, and provide the required summary reports of those self-audits to the ISM on request and not more frequent than as of the annual anniversary date of this Agreement or any other date agreed to by the Parties. (p) As required under Section 15 of the Agreement, permit CITY to audit, at any reasonable time during the term of this Agreement and for three (3) years thereafter, Consultant’s records pertaining to matters covered by this Agreement. Consultant further agrees to maintain and retain such records for at least three (3) years after the expiration or earlier termination of this Agreement, except to the extent Consultant is bound by legal obligation (including under the Agreement) to delete such records at an earlier time by the Agreement. Cooperate with the City to ensure that to the extent required by applicable laws, rules and regulations, the Confidential Information will be accessible only by the Consultant and any authorized third party service provider’s personnel. (q) Perform regular, reliable secured backups of all data needed to maximize availability of the Services. (r) Maintain records relating to the Services for a period of three (3) years after the expiration or earlier termination of this Agreement in accordance with section (p). Such records shall be made available for review by ISM under the audit provision set forth in section (p). (s) Maintain the Confidential Information in accordance with applicable federal, state and local data and information privacy laws, rules and regulations. (t) Encrypt the Confidential Information in transit and use secure file transfer protocols while delivering the same by electronic means to the City and or any authorized recipient. Professional Services Rev Nov. 1, 2011 22 C13148185 (u) Unless otherwise addressed in the Agreement, shall not hold the City liable for any indirect or punitive damages that Contractor incurs including, without limitation, damages for loss of use, data or profits, arising out of the City’s IT environment, including, without limitation, IT infrastructure communications. Consultant’s obligations in this Exhibit F will be performed in accordance with SOC2 Principles. City of Palo Alto (ID # 3627) City Council Staff Report Report Type: Consent Calendar Meeting Date: 4/15/2013 City of Palo Alto Page 1 Summary Title: NCPA Operating Agreement for Scheduling Coordination Services Title: Adoption of a Resolution Approving and Authorizing the City Manager to Execute and Amend the Northern California Power Agency Operating Agreement for Scheduling Coordination Services for Renewable Resources From: City Manager Lead Department: Utilities Recommendation Staff recommends that the City Council adopt the attached resolution (Attachment A), by which the City approves of the Operating Agreement with the Northern California Power Agency and delegates authority to the City Manager, or the Director of Utilities, to do the following: 1. Sign the Operating Agreement between the Northern California Power Agency (NCPA) and the City Of Palo Alto (Attachment B); and 2. Amend the Operating Agreement as necessary to add and/or remove electric generation facilities. Executive Summary Execution of the NCPA Operating Agreement “Operating Agreement” is necessary to enable continued delivery to our customers of renewable energy purchased to meet the City’s Renewable Portfolio Standard (RPS). Council approved several long-term power purchase agreements (PPAs), including six PPAs with Ameresco for landfill gas generation whereby Palo Alto is responsible for scheduling coordination services to ensure proper delivery of the resources. In the Ameresco PPAs, NCPA is named as the scheduling coordinator and, for the projects already on-line, NCPA has been scheduling these resources accordingly. Scheduling coordination services entail providing daily and hourly instructions for dispatching electricity from the resources to the state’s electric grid operator. City staff is not equipped to provide scheduling coordination services as it requires specific resources, market expertise and information systems and staffing for a 24-hour/day operation. Scheduling coordination services City of Palo Alto Page 2 are, however, a core function of NCPA, which is fully equipped to provide these services to its members. NCPA is currently obligated to provide scheduling coordination services on behalf of Palo Alto for other resources such as the Calaveras Hydroelectric Project, the Western Base Resource contract, and the City’s market purchases. Although NCPA currently provides scheduling coordination services to the City for its Ameresco landfill gas PPAs, the addition of several new renewable PPAs, including the Brannon Solar PPA, has prompted NCPA to request execution of the Operating Agreement to ensure proper authorization, obligations and indemnification of liabilities are in place. This practice is consistent with NCPA members’ desire, including Palo Alto’s, to limit risk to only members participating in specific projects. The proposed Operating Agreement has been reviewed and approved as to form by the City Attorney’s Office. Background The City of Palo Alto (City) is a member of NCPA. NCPA provides a host of services to the City’s electric utility, including acting as the City’s scheduling coordinator. As the scheduling coordinator, NCPA schedules the City’s and other members’ electric loads and certain resources with the California Independent System Operator (CAISO) which entails following load and resource deviations from forecasts; coordinating outage and other disruptions; and adhering to all requirements as specified in the CAISO tariff and/or NCPA-CAISO Metered Subsystem Aggregator (MSSA) Agreement.1 Further, NCPA is obligated to provide scheduling coordination services2 on behalf of Palo Alto and other NCPA members for the Calaveras Hydroelectric Project, Western Base Resource contract, all of the City’s forward market transactions made through the electric master agreements, and several natural gas-fired generators and renewable resources owned and/or operated by NCPA. Therefore, the City has requested that NCPA provide scheduling coordination services for its renewable PPAs with Ameresco. Additionally, the City may elect to use NCPA as the scheduling coordinator for future renewable projects including the Brannon Solar PPA, which names NCPA as the scheduling coordinator but permits the City to replace it with an alternate scheduling coordinator. In pursuit of the City’s RPS goal of 33% of energy purchases from renewal energy resources by 2015, to date Council has approved several long-term PPAs for renewable resources. Table 1 is a summary of Palo Alto’s existing renewable PPAs including which entity has been or will be acting as the City’s scheduling coordinator. 1 Under Resolution No. 8847, in July 2008 City Council authorized the City Manager, or his designee, to execute the Second Amended and Restated MSSA Agreement and any subsequent amendments needed to comply with the requirements of the CAISO. Under such authority the City Manager executed the Third Amended and Restated MSSA Agreement in October 2011. 2 The NCPA Scheduling Coordination Services Program Agreement, approved by Council in July 2002 (CMR:298:02) and the NCPA Pooling Agreement, approved by Council in 1993, specify member/NCPA obligations. City of Palo Alto Page 3 Table 1: Palo Alto’s Existing Renewable PPAs Project PPA Supplier Contract Start Date Percent of Retail Sales Scheduling Coordinator High Winds I Iberdrola December 2004 4.9 Iberdrola Shiloh Wind Iberdrola June 2006 7.1 Iberdrola Santa Cruz Landfill Ameresco February 2006 1.1 NCPA Keller Canyon Landfill Ameresco August 2009 1.2 NCPA Ox Mountain Landfill Ameresco April 2009 4.0 NCPA Johnson Canyon Landfill Ameresco March 2013* 1.0 NCPA San Joaquin Landfill Ameresco June 2013* 3.0 NCPA Crazy Horse Landfill† Ameresco Terminated 2.0 NCPA Brannon Solar Trina Solar August 2014* 5.0 Not yet specified * Expected as of February 2013. † The Crazy Horse Landfill PPA was terminated in March 2013 due to lack of development progress by the supplier. Discussion NCPA has the authority and obligation to act as the scheduling coordinator for NCPA-owned and operated projects “NCPA Projects” under the Scheduling Coordinator Program Agreement (SCPA). The SCPA provides obligations, responsibilities, limits of liability and commits the City to pay the cost associated with scheduling coordination services for NCPA Projects. The SCPA does not specify obligations, responsibilities and limitation of liabilities for scheduling coordination services for non-NCPA projects such as those acquired by the City on its own including the Ameresco PPAs. NCPA has requested that Palo Alto sign the Operating Agreement to make clear obligations and protocols for scheduling and settling all of the City’s renewable PPAs in accordance with the applicable CAISO tariffs. Further the Operating Agreement acts to limit cross-member risk by allocating all benefits and burdens associated with the resources to Palo Alto. Approval of the proposed resolution will enable the City Manager, or his designee, to execute the Operating Agreement so that NCPA may provide scheduling coordination services for the City’s resources as identified in Exhibit B of the Operating Agreement. Additionally, the resolution delegates authority for the City Manager, or his designee, to modify the Operating Agreement. Modifications are expected to include adding new resources as the City acquires additional renewables and/or removing resources in the event that a project does not come on- line or the City arranges for alternative scheduling coordination services. City of Palo Alto Page 4 NCPA is in the process of updating the existing SCPA and anticipates that once approved and executed by all members, including Palo Alto, the SCPA will supersede the Operating Agreement. The schedule to modify the SCPA is tentative; however, NCPA anticipates seeking members’ governing board approval sometime in 2013. Alternative An alternative to having NCPA provide scheduling coordination services is to seek a third party service provider. There are a number of entities besides NCPA that could provide this service to Palo Alto—including for-profit companies like Shell Energy North America and VIASYN, as well as other municipal utilities like the Turlock Irrigation District and Silicon Valley Power. Based on informal inquiries of the cost of procuring scheduling coordination services for renewable resources, staff believes other providers are likely to be more expensive than obtaining the services through NCPA for the Ameresco PPA resources and would require an agreement similar to the Operating Agreement. This alternative would require that the City issue a request for proposals (RFP) for this service in order to meet the City’s procurement requirements. Furthermore, it could potentially cause disruptions in delivery and scheduling of the resources. For this reason, staff is not recommending this alternative at this time, but will investigate alternative scheduling coordination services in the context of a broader evaluation of NCPA services, costs and benefits. Staff does intend to solicit alternative scheduling coordinator proposals for the Brannon Solar project. Given the potential complexity in scheduling this highly intermittent resource, staff anticipates that NCPA’s cost for scheduling coordination services may be higher than procuring the services through a third-party provider. Since the Brannon Solar project is not expected to come on-line until August 2014, staff has time to investigate alternative service providers or to negotiate a reasonable arrangement with NCPA. Resource Impact The costs of NCPA’s provision of scheduling coordination services to Palo Alto will be included in NCPA’s annual budget, and will be determined pursuant to cost allocation methodologies approved by the NCPA Commission. All costs associated with NCPA’s provision of scheduling coordination services for the PPAs resources as specified in Exhibit B of the Operating Agreement will be allocated to Palo Alto. Based on NCPA current cost allocation methodology for Fiscal Year (FY) 2014, the estimated annual cost of providing scheduling coordination services for each renewable energy PPA is provided in Table 2. City of Palo Alto Page 5 Table 2: Annual Scheduling Coordination Services Cost of PPAs Scheduled by NCPA Project PPA Supplier Annual Scheduling Cost Annual Energy MWh $/MWh Santa Cruz Landfill Ameresco $16,000 10,200 $ 1.57 Keller Canyon Landfill Ameresco $30,000 15,100 $ 1.13 Ox Mountain Landfill Ameresco $17,000 43,500 $ 0.69 Johnson Canyon Landfill Ameresco $19,000* 10,400 $ 1.83 San Joaquin Landfill Ameresco $27,000* 30,300 $ 0.89 *Estimated as of February 2013. Approval of the resolution authorizing the City Manager to execute the Operating Agreement will not impact the City’s FY 2013 Electric Operating Budget or proposed FY 2014 Electric Operating Budget as the cost for providing such services is already included as part of the electric supply purchase costs. For subsequent fiscal years, staff will to include the cost of scheduling coordination services as part of the Electric Fund’s Operating Budget. Policy Implications Acquiring scheduling coordination services for the City’s renewable resources is an efficient use of City resources and as such supports the Council-approved 2011 Utilities Strategic Plan objective to manage supply costs. Environmental Analysis This activity would not result in a direct or reasonably foreseeable indirect change in the physical environment and is therefore not a “project” for purposes of Section 21065 of the California Environmental Quality Act. No environmental review is necessary. Attachments: Attachment A: Resolution NCPA Operating Agreement (PDF) Attachment B: NCPA PA Operating Agreement (DOCX) *NOT YET APPROVED* 130409 dm 00710205 1 ATTACHMENT A Resolution No. _____ Resolution of the Council of the City of Palo Alto Approving and Authorizing the City Manager to Execute and Amend the Operating Agreement Between the Northern California Power Agency and The City of Palo Alto to Allow Scheduling Coordination Services of Renewable Resources R E C I T A L S A. The Northern California Power Agency (“NCPA”) was formed in 1968 for the purpose of utilizing the joint action of participating public power entities to pursue common interests for the benefit of all such members; and subsequently revised on April 1, 1973 and January 1, 2008. The City of Palo Alto (“City”) is a member NCPA as one of the original signatories to the NCPA Joint Power Agency Agreement. B. The City operates as a metered subsystem located within the California Independent System Operator Corporation (“CAISO”), and is a party to the Second Amended and Restated NCPA Metered Subsystem Aggregator Agreement (“MSSA Agreement”), as it may be amended from time to time. NCPA, acting on behalf of the City, schedules the City’s electric load and resources within the balancing authority pursuant to the terms of the CAISO Tariff and subject to the terms and conditions of the NCPA Scheduling Coordination Program Agreement (“SCPA”). By Resolution Number 8200, Council approved the City’s participation in the NCPA SCPA. The SCPA is intended to cover scheduling coordination services for member loads and NCPA owned and/or operated projects (“NCPA Projects”) exclusively. C. By Resolution Number 9152 Council updated the Long-term Electric Acquisition Plan (LEAP) with three primary energy portfolio objectives and the directive to achieve a Renewable Portfolio Standard (“RPS”) by pursuing a minimum level of renewable purchases of at least 33 percent of retail sales by 2015 while ensuring that the retail rate impact for renewable purchases does not exceed 0.5 cents per kilowatt hour. D. To meet the City’s RPS, by resolution Council has approved seven Power Purchase Agreements (“PPA”) for the delivery of long-term renewable resources for which the City is responsible for providing scheduling coordination services as follows: 1. Resolution #9055: Ameresco Crazy Horse, LLC; 2. Resolution #8495: Ameresco Half Moon Bay, LLC; 3. Resolution #8852: Ameresco Keller Canyon, LLC; 4. Resolution #9055: Ameresco San Joaquin, LLC; 5. Resolution #8473: Ameresco Santa Cruz, LLC; 6. Resolution #8971: Ameresco Johnson Canyon, LLC; and 7. Resolution #9225: Trina Brannon Solar, LLC. *NOT YET APPROVED* 2 130409 dm 00710205 E. The City staff does not have the resources, capabilities and/or expertise to perform scheduling coordination services and therefore has named NCPA as its scheduling coordinator for the PPAs listed in Recital D. NCPA has been providing scheduling coordination services on behalf of the City for the PPAs on-line, however has indicated that resources acquired by the City through PPAs are not NCPA Projects and therefore are not covered under the NCPA SCPA. In an effort to formalize responsibilities and obligations and to minimize cross member risk to other NCPA members, NCPA has requested that the City sign the NCPA Commission-approved Operating Agreement to continue to receive scheduling coordination services for non-NCPA Projects. The Operating Agreement may be subsumed by an Amended and Restated Scheduling Coordination Program Agreement. F. The City intends to continue signing PPAs until it achieves its RPS target up to the rate impact limit of 0.5 cents per kWh and in the absence of an alternative scheduling coordinator wishes to continue to use NCPA as its scheduling coordinator for existing and future renewable resources as determined by the City. The Council of the City of Palo Alto does RESOLVE as follows: SECTION 1. The Council hereby approves, and authorizes the City Manager, or his designee, to sign the Operating Agreement with NCPA and amend as needed to add and/or remove generating facilities. SECTION 2. Cost associated with the Operating Agreement will be included in the annual NCPA Budget as approved by the NCPA Commission and provided for in the Utilities Department’s Electric Supply Purchase Cost on an annual basis. // // // // // // // // // *NOT YET APPROVED* 3 130409 dm 00710205 SECTION 3. The Council hereby finds that this ordinance is exempt from the provisions of the California Environmental Quality Act pursuant to Section 15061(b)(3) of the California Environmental Quality Act Guidelines, because it can be seen with certainty that there is no possibility of significant environmental effects occurring as a result of the approval of this Resolution. INTRODUCED: PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: _____________________________ _____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: _____________________________ ______________________________ Senior Asst. City Attorney City Manager ______________________________ Director of Administrative Services ______________________________ Director of Utilities 1 Operating Agreement Between NCPA and City of Palo Alto OPERATING AGREEMENT BETWEEN NORTHERN CALIFORNIA POWER AGENCY AND THE CITY OF PALO ALTO This Operating Agreement (“Agreement”) is made by and between the NORTHERN CALIFORNIA POWER AGENCY (“NCPA”), a joint public powers agency with offices located at 651 Commerce Drive, Roseville, California and the CITY OF PALO ALTO with offices located at 250 Hamilton Avenue, Palo Alto, California, 94301 (“Contracting Member”) (together sometimes referred to herein individually as “Party” and collectively as “Parties”) as of ______________, 20__ (the “Effective Date”) in Roseville, California. Section 1. RECITALS This Agreement is entered into based on the following facts, among others: 1.1 NCPA is a public agency created by a joint powers agreement established under California law for the purpose of assisting its members in the efficient use of their common powers. 1.2 Contracting Member is engaged in, among other things, transmitting and distributing electric power in Palo Alto, California. Contracting Member is also a member of NCPA. Contracting Member desires that NCPA provide Contracting Member with the Services described in this Agreement. 1.3 Article III, Section 3 of the “Amended and Restated Northern California Power Agency Joint Powers Agreement” (as amended and effective January 1, 2008) (hereinafter “JPA”) entitled “Powers and Functions” provides that none of the debts, liabilities or obligations of NCPA shall be the debts, liabilities or obligations of any of the members of NCPA unless assumed in a particular case by resolution of the governing body of the member to be charged.” Notwithstanding the foregoing, Article V, Section 1 of the JPA entitled “General Provisions” provides that “[t]he governing Commission of NCPA is authorized to procure public liability and other insurance as it deems advisable to protect NCPA and each of the parties hereto, charging the cost thereof to the operating costs of NCPA.” 1.4 Contracting Member desires to secure NCPA’s Services under this Agreement in a manner that balances its interests and the interests of other NCPA members with the ongoing financial viability and professional responsibilities of NCPA. Accordingly, Contracting Member desires to secure NCPA’s Services under this Agreement by accepting a limited insurance based recourse against NCPA, with the option of procuring additional insurance at Contracting Member’s sole expense, thereby insuring that NCPA will substantially limit its risk for the provision of such Services which, in turn, allocates risks back to the Contracting Member in the event NCPA is not adequately insured. 1.5 The NCPA Commission has previously approved an agreement with Contracting Member to provide these same or similar services (“the Prior Agreement”). The Prior Agreement, 2 Operating Agreement Between NCPA and City of Palo Alto approved by NCPA Commission resolution 09-64 was not executed by Contracting Member and is superseded by this Agreement. NOW THEREFORE, in consideration of the mutual covenants and promises set forth, NCPA and Contracting Member agree as follows: Section 2. DEFINITIONS Whenever used in this Agreement with initial capitalization, these terms shall have the following meanings as applicable, whether in the singular or plural: 2.1 “Annual Budget” means the budget for the ensuing Fiscal Year adopted by the NCPA Commission, as it may be amended from time to time. 2.2 “California Independent System Operator (CAISO)” is a non-profit public benefit corporation responsible for the provision of fair and open transmission access, and maintaining reliable and efficient operation of the grid, within the State of California pursuant to Chapter 2.3, Part 1, Division 1 of the California Public Utilities Code. 2.3 “Fiscal Year” means the NCPA fiscal year; currently the twelve month period beginning July 1 and ending on the next following June 30. 2.4 “General Operating Reserve Account” means the NCPA General Operating Reserve created through resolution of the NCPA Commission, as the same may be amended from time to time. 2.5 “Generating Facilities” shall mean those generating units listed in Exhibit B for which NCPA has been designated as the Scheduling Coordinator, for which CAISO has assigned a Resource ID, and as to which the Contracting Member has entered into a power purchase agreement with third persons to receive the energy and capacity produced by the generating units. 2.6 "Good Utility Practice" shall mean any of the practices, methods and acts engaged in or approved by a significant portion of the electric utility industry during the relevant time period, or any of the practices, methods and acts which, in the exercise of reasonable judgment in light of the facts known at the time the decision was made, could have been expected to accomplish the desired result of the lowest reasonable cost consistent with good business practices, reliability, safety and expedition. Good Utility Practice is not intended to be limited to the optimum practice, method or act to the exclusion of all others, but rather to be acceptable practices, methods, or acts generally accepted in the region and consistently adhered to by the electric utility industry. 2.7 “NCPA Members” shall mean the signatories to the JPA or those agencies which have executed an Associate Member Agreement with NCPA. 2.8 “NCPA Project” has the meaning set forth in the Northern California Power Agency Facilities Agreement between NCPA, certain NCPA Members and the Turlock Irrigation District and dated as of September 22, 1993, as the same has been amended and as it may hereafter be amended from time to time. 3 Operating Agreement Between NCPA and City of Palo Alto 2.9 “Resource ID” shall mean the CAISO resource identifier used for tracking each resource for market scheduling, settlement and outage coordination purposes. 2.10 “Scheduling Coordinator” shall mean an entity certified by the CAISO for the purposes of undertaking the functions of a Scheduling Coordinator specified in the CAISO tariff, including, but not limited to, submitting and settling bids, self schedules, and trades in the CAISO markets. 2.11 “Scheduling Coordination Program Agreement” or “SCPA” shall mean the NCPA Scheduling Coordination Program Agreement dated as of August 28, 2002, as such may be amended from time to time. 2.12 “Scheduling Coordination Services” shall mean services provided by NCPA under the SCPA. 2.13 “Stranded Costs” shall mean all costs incurred by NCPA in providing Services to Contracting Member under this Agreement that could not reasonably be avoided by NCPA from the date it receives a written Notice of Termination. Such costs may include, but not be limited to, salary and employment costs, rent, utilities, or contracts incurred to provide Services under this Agreement. 2.14 “Uncontrollable Force” shall mean any act of God, labor disturbance, act of the public enemy, war, insurrection, riot, fire, storm, flood, earthquake, explosion, any curtailment, order, regulation or restriction imposed by governmental, military or lawfully established civilian authorities or any other cause beyond the reasonable control of the Party claiming Uncontrollable Force which could not be avoided through the exercise of Good Utility Practice. Section 3. SERVICES TO BE PROVIDED; AUTHORIZED REPRESENTATIVES; STANDARD OF PERFORMANCE 3.1 Services. This Agreement is entered into by the Parties in order for NCPA to provide services to Contracting Member for the services described in Exhibit A hereto (“Services”). 3.2 Authorized Representatives. The following are the Authorized Representatives of the parties for contract administration purposes under this Agreement: David Dockham Valerie Fong Assistant General Manager - Power Management Director of Utilities Northern California Power Agency City of Palo Alto 651 Commerce Dr. 250 Hamilton Avenue Roseville, CA 95678-6420 Palo Alto, CA 94301 (916) 781-4256 Phone (650) 329-2277 Phone (916) 781-4252 Fax (650) 321-0651 Fax 4 Operating Agreement Between NCPA and City of Palo Alto No Authorized Representative is authorized to amend any provision of this Agreement except in accordance with Section 12.16. 3.3 Standard of Performance. NCPA will perform the Services using that level of skill and attention reasonably required to complete the Services in a competent and timely manner. 3.4 Assignment of Personnel. NCPA shall assign only competent personnel to perform Services pursuant to this Agreement. 3.5 Time. NCPA shall devote such time to the performance of Services pursuant to this Agreement as may be reasonably necessary to meet the standard of performance provided in Section 3.3 above, and to satisfy NCPA’s obligations hereunder. Section 4. TERM AND TERMINATION 4.1 Authorization to Perform Services. NCPA is not authorized to perform any initial Services or incur any costs whatsoever under the terms of this Agreement until its receipt of a written resolution and/or other appropriate/applicable authorization from Contracting Member’s governing body confirming Contracting Member’s authority to enter into this Agreement and confirming that the Contracting Member has allocated funds for and approved contract payments to NCPA under this Agreement. 4.2 Term. The term of this Agreement shall begin on the Effective Date. This Agreement may be terminated by either Party upon at least two (2) years’ prior written notice of such early termination (“Notice of Termination”). Not withstanding the foregoing, this Agreement shall also terminate in the event that the SCPA is amended to provide that NCPA will provide schedule coordination services to NCPA members for non-NCPA Projects and, following such amendment, upon the inclusion of all Generating Facilities for which Services are provided pursuant to this Agreement into the SCPA. Upon termination of this Agreement, Contracting Member shall pay NCPA for all fees and costs, including all Stranded Costs through the effective date of termination. Upon payment of the above amounts, neither Party shall have any further obligations under this Agreement except as otherwise set forth in Section 5.7 regarding the survival of defense and indemnity obligations. Section 5. INDEMNITY AND INSURANCE 5.1 Limitation of NCPA’s Liability. 5.1.1 Except as provided in this Section 5.1, NCPA shall not at any time be liable for any injury or damage occurring to Contracting Member or any other person or property from any cause whatsoever arising out of this Agreement. 5 Operating Agreement Between NCPA and City of Palo Alto 5.1.2 The provisions of Section 5.1.1 shall not apply where the injury or damage occurring to Contracting Member is caused by the negligence of NCPA or of any employee, agent or contractor of NCPA, and provided that any liability under this subsection is limited to the extent of the actual coverage and coverage limits of the insurance policies described in this Section 5. 5.1.3 Contracting Member Liable for NCPA’s Deductibles and/or Self-Insured Retentions. Notwithstanding Section 5.1.2 above, Contracting Member agrees to reimburse NCPA, in a timely manner, for all deductibles and/or self-insured retentions payable for any claim, liability or damage arising out of this Agreement. 5.2 Indemnification of NCPA. Except as specified in Section 5.1.2 above, Contracting Member shall, at its sole cost and expense, indemnify and hold harmless NCPA and all associated, affiliated, allied, member and subsidiary entities of NCPA, now existing or hereinafter created, and their respective officers, boards, commissions, employees, agents, attorneys, and contractors (hereinafter referred to as “Indemnitees”), from and against any and all liability, obligation, damages, penalties, claims, liens, costs, charges, losses and expenses (including, without limitation, reasonable fees and expenses of attorneys, expert witnesses and consultants), which may be imposed upon, incurred by or be asserted against the Indemnitees arising out of this Agreement. 5.3 Defense of Indemnitees. In the event any action or proceeding shall be brought against the Indemnitees by reason of any matter for which the Indemnitees are indemnified hereunder, Contracting Member shall, upon reasonable prior written notice from any of the Indemnitees, at Contracting Member’s sole cost and expense, resist and defend the same with legal counsel mutually selected by Indemnitee and the Contracting Member, unless mutual selection of counsel is expressly prohibited by an applicable insurance policy; provided however, that neither Indemnitee nor Contracting Member shall admit liability in any such matter or on behalf of the other without express written consent, which consent shall not be unreasonably withheld or delayed, nor enter into any compromise or settlement of any claim for which Indemnitees are indemnified hereunder without prior express written consent. The Contracting Member’s duty to defend shall begin upon receipt of a written notice identifying with specificity the allegations that give rise to this duty to defend. 5.4 Notice. The Parties shall give each other prompt notice of the making of any claim or the commencement of any action, suit or other proceeding covered by the provisions of this Section 5. 5.5 Insurance. During the term of the Agreement and prior to beginning any work under this Agreement, NCPA shall maintain, or cause to be maintained, in full force and effect, and at its sole cost and expense, the types and limits of insurance as are annually approved by the governing Commission of NCPA. The types and limits of insurance that are applicable to this Agreement are evidenced in policy summaries attached hereto as Exhibit C. NCPA warrants and represents that the types of insurance and coverage limits shown in Exhibit C are in full force and effect and shall remain so during the term of this Agreement unless NCPA gives prior written notification (of not less than 30 days) of modification, cancellation or rescission of such coverage. 6 Operating Agreement Between NCPA and City of Palo Alto 5.6 Contracting Member’s Acknowledgment of Option to Secure Additional Insurance. Contracting Member acknowledges that there are limitations on NCPA’s liability to Contracting Member under this Section 5 and that the Contracting Member may need to purchase additional insurance of its own to cover the additional risks and the potential additional liabilities it is assuming under this Agreement. Contracting Member agrees that it will cause, with respect to any additional insurance it obtains or which is otherwise available to Contracting Member, its insurers to issue an endorsement providing a waiver of subrogation rights as to Indemnitees. 5.7 Survival of Obligations. The defense and indemnity obligations of Section 5 shall survive the termination of this Agreement. Section 6. CHARGES & SECURITY DEPOSIT 6.1 Monthly Charges. Charges for the Services provided hereunder shall be calculated as follows: Contracting Member will be solely responsible for any and all costs incurred by NCPA attributed to NCPA’s provision of Services for the Generating Facilities, including, but not limited to, NCPA’s costs for providing Scheduling Coordination Services as forecasted in NCPA’s Annual Budget, and any and all CAISO charges and credits assessed to NCPA for acting as Scheduling Coordinator for the Generating Facilities. Scheduling Coordination Services costs shall be determined and allocated to Contracting Member as if the purchase power agreement for each Generating Facility were an NCPA Project. 6.2 Security Deposit. Contracting Member shall maintain on deposit in its General Operating Reserve Account held at NCPA the sum of zero dollar ($0.00) as security to NCPA for liabilities NCPA could incur under this Agreement. Contracting Member hereby authorizes NCPA to reserve and commit this sum in its General Operating Reserve Account for the payment of the aforementioned liabilities should some become necessary. Interest on monies held by NCPA pursuant to this section shall be credited in accordance with the then standard practices of NCPA relating to the General Operating Reserve Account. Section 7. BILLING AND PAYMENT 7.1 Monthly Payments. As part of its “All Resources Bill,” prepared in the usual and ordinary course of business, NCPA shall render a monthly billing to Contracting Member for all charges incurred by Contracting Member hereunder. Contracting Member shall pay such bill within thirty (30) calendar days of the due date indicated on the bill. Any amount due on a day other than a business day, i.e., any day except a Saturday, Sunday, or a Federal Reserve Bank holiday, may be paid on the following business day. Payments shall be remitted directly to: Northern California Power Agency 651 Commerce Drive Roseville, California 95678 Attn: Accounts Receivable 7 Operating Agreement Between NCPA and City of Palo Alto Except for an “Uncontrollable Force” as described in Section 9 hereof, any amount due and payable but not paid by Contracting Member within 30 days following the date of the invoice shall bear interest at the per annum prime rate (or reference rate) of the Bank of America NT & SA, then in effect, plus two percent per annum computed on a daily basis until paid. NCPA will mail all invoices within 24 hours of the invoice date thereon. The postmark date on the envelope containing payment by check shall be used to determine timeliness of payment, except that payments received later than seven (7) days after the due date shall be declared late without regard to postmark date. An invoice coming due on a Friday, holiday, or weekend shall be due on the next following nationally recognized working day. 7.2 Billing Dispute. If all or any portion of a bill is disputed by Contracting Member, the entire amount of the bill shall be paid when due, and NCPA’s Authorized Representative shall be concurrently provided written notice of the disputed amount and the basis for the dispute. NCPA shall reimburse any amount determined to have been incorrectly billed, within ten (10) days after such determination. 7.3 Total Payment. Contracting Member shall pay for the Services to be rendered by NCPA pursuant to this Agreement. Contracting Member shall not pay any additional sum for any expense or cost whatsoever incurred by NCPA in rendering Services pursuant to this Agreement unless the Agreement has been modified by a properly executed change order or amendment in accordance with this Agreement. 7.4 Payment of Taxes. NCPA is solely responsible for the payment of employment taxes incurred under this Agreement and any similar federal or state taxes. 7.5 Payment upon Termination. In the event that Contracting Member or NCPA terminates this Agreement pursuant to Section 4, Contracting Member shall compensate the NCPA for all outstanding costs and reimbursable expenses incurred for work satisfactorily completed as of the date of written notice of termination. NCPA shall maintain adequate logs and timesheets in order to verify costs incurred to that date. Section 8. STATUS OF NCPA; FACILITIES AND EQUIPMENT 8.1 Independent Contractor. At all times during the term of this Agreement, NCPA shall be an independent contractor and shall not be an employee of Contracting Member. Contracting Member shall have the right to control NCPA only insofar as the results of NCPA's Services rendered pursuant to this Agreement and assignment of personnel pursuant to Section 3.4; however, otherwise Contracting Member shall not have the right to control the means by which NCPA accomplishes Services rendered pursuant to this Agreement. Notwithstanding any other agency, state, local or federal policy, rule, regulation, law, or ordinance to the contrary, NCPA and any of its employees, agents, and subcontractors providing Services under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any and all claims to, any compensation, benefit, or any incident of employment by Contracting Member, including, but not limited to, eligibility to enroll in the California Public Employees Retirement System (“PERS”) as an 8 Operating Agreement Between NCPA and City of Palo Alto employee of Contracting Member and entitlement to any contribution to be paid by Contracting Member for employer contributions and/or employee contributions for PERS benefits. Section 9. UNCONTROLLABLE FORCES 9.1 Obligations of the Parties, other than those to pay money when due, shall be excused for so long as and to the extent that failure to perform such obligations is due to an Uncontrollable Force; provided, however, that if either Party is unable to perform due to an Uncontrollable Force, such Party shall exercise due diligence to remove such inability with reasonable dispatch. Nothing contained in this Agreement shall be construed as requiring a Party to settle any strike, lockout, or labor dispute in which it may be involved, or to accept any permit, certificate, contract, or any other service agreement or authorization necessary for the performance of this Agreement which contains terms and conditions which a Party determines in its good faith judgment are unduly burdensome or otherwise unacceptable. 9.2 Each Party shall notify the other promptly, by telephone to the other Party’s operating personnel and Authorized Representative identified in Section 3.2, upon becoming aware of any Uncontrollable Force which may adversely affect the performance under this Agreement. A Party shall additionally provide written notice in accordance with Section 12.8 to the other Party within 24 hours after providing. Each Party shall notify the other promptly, when an Uncontrollable Force has been remedied or no longer exists. Section 10. LEGAL REQUIREMENTS 10.1 Governing Law. The laws of the State of California shall govern this Agreement, without regard for the choice of law doctrine. 10.2 Compliance with Applicable Laws. NCPA and any subcontractors shall comply with all laws applicable to the performance of the Services hereunder. 10.3 Other Governmental Regulations. To the extent that this Agreement may be funded by fiscal assistance from another governmental entity, NCPA and any subcontractors shall comply with all applicable rules and regulations to which Contracting Member is bound by the terms of such fiscal assistance program. 10.4 Licenses and Permits. NCPA represents and warrants to Contracting Member that NCPA and its employees, agents, and any subcontractors have all licenses, permits, qualifications, and approvals of whatsoever nature that is legally required to practice their respective professions. NCPA represents and warrants to Contracting Member that NCPA and its employees, agents, any subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required to practice their respective professions. 10.5 Nondiscrimination and Equal Opportunity. NCPA shall not discriminate, on the basis of a person’s race, religion, color, national origin, age, physical or mental handicap or disability, medical condition, marital status, sex, or sexual orientation, against any employee, 9 Operating Agreement Between NCPA and City of Palo Alto applicant for employment, subcontractor, bidder for a subcontract, or participant in, recipient of, or applicant for any services or programs provided by NCPA under this Agreement. NCPA shall comply with all applicable federal, state, and local laws, policies, rules, and requirements related to equal opportunity and nondiscrimination in employment, contracting, and the provision of any services that are the subject of this Agreement, including but not limited to the satisfaction of any positive obligations required of NCPA thereby. NCPA shall include the provisions of this Subsection in any subcontract approved by Contracting Member’s Authorized Representative. Section 11. KEEPING AND STATUS OF RECORDS. 11.1 Records Created as Part of NCPA’s Performance. All reports, data, maps, models, charts, studies, surveys, photographs, memoranda, plans, studies, specifications, records, files, or any other documents or materials, in electronic or any other form, that NCPA prepares or obtains pursuant to this Agreement and that relate to the matters covered hereunder shall be the property of Contracting Member. NCPA hereby agrees to deliver those documents to Contracting Member upon termination of the Agreement. It is understood and agreed that the documents and other materials, including, but not limited to, those described above, prepared pursuant to this Agreement are prepared specifically for Contracting Member and are not necessarily suitable for any future or other use. Contracting Member and NCPA agree that, until final approval by Contracting Member, all data, plans, specifications, reports and other documents are confidential and will not be released to third parties without prior written consent of both Parties, except as may otherwise be required by applicable law. 11.2 NCPA’s Books and Records. NCPA shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for Services or expenditures and disbursements charged to Contracting Member under this Agreement for a minimum of three (3) years, or for any longer period required by law, from the date of final payment to the NCPA to this Agreement. 11.3 Inspection and Audit of Records. Any records or documents that Section 11.2 of this Agreement requires NCPA to maintain shall be made available for inspection, audit, and/or copying at any time during regular business hours, upon oral or written request of Contracting Member. Under California Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds TEN THOUSAND DOLLARS ($10,000.00), the Agreement shall be subject to the examination and audit of the State Auditor, at the request of Contracting Member or as part of any audit of the Contracting Member, for a period of three (3) years after final payment under the Agreement. 11.4 Confidential Information and Disclosure. During the term of this Agreement, either party (“Disclosing Party”) may disclose confidential, proprietary or trade secret information (the “Information”), to the other party (“Receiving Party”). All such Information made available in a tangible medium of expression (such as, without limitation, on paper or by means of magnetic tapes, magnetic disks or other computer media) shall be marked in a prominent location to indicate that it is the confidential, proprietary and trade secret information of Disclosing Party at the time of disclosure to Receiving Party. Receiving Party shall hold Disclosing Party’s Information in 10 Operating Agreement Between NCPA and City of Palo Alto confidence and shall take all reasonable steps to prevent any unauthorized possession, use, copying, transfer or disclosure of such Information. Receiving Party shall not attempt to reverse engineer or in any manner create any product or information which is similar in appearance to or based on the Information provided by Disclosing Party. Receiving Party shall not disclose Disclosing Party’s Information to any person other than Receiving Party’s employees, agents, contractors and subcontractors who have a need to know in connection with this Agreement. Receiving Party’s confidentiality obligations hereunder shall not apply to any portion of Disclosing Party’s Information which: (a) Has become a matter of public knowledge other than through an act or omission of Receiving Party; (b) Has been made known to Receiving Party by a third party in accordance with such third party’s legal rights without any restriction on disclosure; (c) Was in the possession of Receiving Party prior to the disclosure of such Information by Disclosing Party and was not acquired directly or indirectly from the other party or any person or entity in a relationship of trust and confidence with the other party with respect to such Information; (d) Receiving Party is required by law to disclose; or (e) Has been independently developed by Receiving Party from information not defined as "Information" in this Agreement, as evidenced by Receiving Party's written records. Receiving Party shall return or destroy Disclosing Party’s Information (including all copies thereof) to Disclosing Party promptly upon the earliest of any termination of this Agreement or the Disclosing Party’s written request. Notwithstanding the foregoing, Receiving Party may retain one copy of such Information solely for archival purposes, subject to the confidentiality provisions of this Agreement. The Parties understand that each Party is a public entity and is subject to the laws that may compel either to disclose information about the other’s business. Section 12. MISCELLANEOUS PROVISIONS 12.1 Attorneys’ Fees. If a Party to this Agreement brings any action, including an action for declaratory relief, to enforce or interpret the provisions of this Agreement, the prevailing Party shall be entitled to reasonable attorneys’ fees in addition to any other relief to which that Party may be entitled. The court may set such fees in the same action or in a separate action brought for that purpose. 12.2 Venue. In the event that either party brings any action against the other under this Agreement, the Parties agree that trial of such action shall be vested exclusively in the state courts of California in the County of Placer or in the United States District Court for the Eastern District of California. 12.3 Severability. If any provision of this Agreement shall be determined by a court of competent jurisdiction to be invalid, void or unenforceable, or if any provision of this Agreement is rendered invalid or unenforceable by federal or state statute or regulation, but the remaining portions of the Agreement can be enforced without failure of material consideration to any Party, 11 Operating Agreement Between NCPA and City of Palo Alto then the remaining provisions shall continue in full force and effect. To that end, this Agreement is declared to be severable. Provided, however, that in the event any provision is declared to be invalid, void or unenforceable, either Party may terminate this Agreement upon ten (10) days’ written notice given within five (5) business days of receipt of notice of final entry of judgment. 12.4 No Implied Waiver of Breach. The waiver of any breach of a specific provision of this Agreement does not constitute a waiver of any other breach of that term or any other term of this Agreement. 12.5 Successors and Assigns. The provisions of this Agreement shall inure to the benefit of and shall apply to and bind the successors and assigns of the Parties. 12.6 Use of Recycled Products. NCPA shall endeavor to prepare and submit all reports, written studies and other printed material on recycled paper to the extent it is available at equal or less cost than virgin paper. 12.7 Conflict of Interest. NCPA shall not employ any Contracting Member official or employee in the work performed pursuant to this Agreement. No officer or employee of Contracting Member shall have any financial interest in this Agreement that would violate California Government Code Sections 1090 et seq. 12.8 Notices. Unless this Agreement requires otherwise, any notice, demand or request provided for in this Agreement, or served, given or made shall become effective when delivered in person, or sent by registered or certified first class mail, to the persons specified below: For NCPA: Dave Dockham Assistant General Manager – Power Management Northern California Power Agency 651 Commerce Drive Roseville, CA 95678 With a copy to: Michael F. Dean General Counsel, Northern California Power Agency c/o Meyers Nave 555 Capitol Mall, Suite 1200 Sacramento, CA 95814 For Contracting Member: Valerie Fong Director of Utilities City of Palo Alto 250 Hamilton Avenue 12 Operating Agreement Between NCPA and City of Palo Alto Palo Alto, CA 94301 With a copy to: Marybelle Ang Senior Deputy City Attorney, City of Palo Alto 250 Hamilton Avenue Palo Alto, CA 94301 When-ever it is required, permitted, or desired in this Agreement that written notice or demand be given by any Party to any other Party, such notice or demand may be either personally served or sent by United States Mail, or facsimile. Notice shall be deemed to have been given when personally served, when deposited in the United States Mail, certified or registered with postage prepaid and properly addressed, or when transmitted by facsimile; provided, however, notices delivered by facsimile shall only be effective if delivered during regular business hours on a day that is considered a regular business day for NCPA by the involved Parties. 12.9 Integration; Incorporation. This Agreement, including all the exhibits attached hereto, represents the entire and integrated agreement between Contracting Member and NCPA relating to the subject matter of this Agreement, and supersedes all prior negotiations, representations, or agreements, either written or oral. All exhibits attached hereto are incorporated by reference herein. 12.10 Dispute Resolution. If any dispute arises between the Parties that cannot be settled after engaging in good faith negotiations, Contracting Member and NCPA agree to resolve the dispute in accordance with the following: 12.10.1 Each Party shall designate a senior management or executive level representative to negotiate any dispute. 12.10.2 The representatives shall attempt, through good faith negotiations, to resolve the dispute by any means within their authority. 12.10.3 If the issue remains unresolved after ninety (90) days of good faith negotiations, despite having used their best efforts to do so, either Party may pursue whatever other remedies may be available to it. 12.10.4 This informal resolution process is not intended to nor shall be construed to change the time periods for filing a claim or action specified by Government Code § 900, et seq. 12.11 Other Agreements. This Agreement is not intended to modify or change any other agreement between any of the Parties, individually or collectively. 12.12 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement. 13 Operating Agreement Between NCPA and City of Palo Alto 12.13 Obligations Several. The duties, obligations and liabilities of the Parties are intended to be several and not joint or collective. Nothing contained in this Agreement shall ever be construed to create an association, trust, partnership or joint venture or to impose a trust or partnership duty, obligation or liability on or with regard to either Party. Each Party shall be individually and severally liable for its own obligations under this Agreement. 12.14 Effect of Section Headings. Section headings and subheadings appearing in this Agreement are inserted for convenience only and shall not be construed as interpretation of text. 12.15 Authority of Signatories. The signatories hereby represent that they have been appropriately authorized to execute this Agreement on behalf of the Party for whom they sign. 12.16 Amendments. 12.16.1 Deemed Approved Amendments. It is understood and agreed by the Parties that any NCPA Commission approved update to the then current Annual Budget rates and charges related to Services to be performed under this Agreement is deemed an approved amendment to this Agreement. 12.16.2 Addition or Removal of Generating Facilities. The Parties may, by a writing signed by the Authorized Representative of NCPA and the Authorized Representative of Contracting Member and without the approval of their respective governing boards, add or remove Generating Facilities listed in Exhibit B for which Contracting Member has requested the provision of Services. 12.16.3 Authorized Representatives and Addresses for Notice. Any Party may, by providing written notice to the other Party, modify either the identity or address for its Authorized Representative as identified in Section 3.2, or may amend its address for notice as provided in Section 12.8. 12.16.4 Amendments in General. Except as otherwise provided in this Section 12.16, the Parties may amend this Agreement only by a writing signed by all the Parties following each Party’s receipt of written resolution/authorization from their governing bodies. 12.17 No Third Party Beneficiaries. Nothing contained in this Agreement is intended by the Parties, nor shall any provision of this Agreement be deemed or construed by the Parties or by any third person, to be for the benefit of any third party, nor shall any third party have any right to enforce any provision of this Agreement or be entitled to damages for any breach by the Parties of any of the provisions of this Agreement. The Parties have executed this Agreement as of the Effective Date. Northern California Power Agency Contracting Member --City of Palo Alto ________________________________ _____________________________________ JAMES H. POPE, General Manager Name/Title: 14 Operating Agreement Between NCPA and City of Palo Alto Attest: Attest: ________________________________ _____________________________________ Assistant Secretary of the Commission Name/Title: Approved as to Form: Approved as to Form: ________________________________ _____________________________________ General Counsel Senior Asst. City Attorney 15 Operating Agreement Between NCPA and City of Palo Alto EXHIBIT A SCOPE OF SERVICES Contracting Member has entered into power purchase agreements as buyer to take delivery of energy and capacity from the non-NCPA Generating Facilities listed in Exhibit B. To enable the scheduling and settlement of energy and capacity from the Generating Facilities, Contracting Member requires that an entity be designated on its behalf as Scheduling Coordinator with the CAISO. NCPA and Contracting Member, along with other NCPA Members, are parties to the Scheduling Coordination Program Agreement dated as of August 28, 2002 (“the SCPA”), as the the same has been amended or may hereafter be amended, by which NCPA provides Scheduling Coordination Services with respect to NCPA Projects to those NCPA Members which have executed the SCPA. In accordance with the terms of this Agreement, Contracting Member has requested, and NCPA has agreed to provide, Scheduling Coordination Services for the Generating Facilities. NCPA shall act as Scheduling Coordinator and provide Scheduling Coordination Services for the Generating Facilities in accordance with the applicable CAISO tariffs and pursuant to the terms of the SCPA, as if the power purchase agreements for each Generating Facility were an NCPA Project. NCPA’s agreement to provide Services to Contracting Member is based on the understanding that the Generating Facilities will operate as resources within the CAISO balancing authority area, and will be scheduled and settled through the CAISO markets. If one or more Generating Facilities are not operated as resources within the CAISO balancing authority area, or are not scheduled and settled through the CAISO markets, the Services provided in this Exhibit A will require modification to identify and include the additional requirements that may be required to provide Scheduling Coordination Services for the impacted Generating Facilities or NCPA may remove such Generating Facilities from this Agreement upon sixty (60) days prior written notice. 16 Operating Agreement Between NCPA and City of Palo Alto EXHIBIT B LIST OF GENERATING FACILTIES The Generating Facilities for which NCPA will provide Services are listed in this Exhibit B. Santa Cruz Landfill Generating Plant o Resource ID: GRNVLY_7_SCLAND o PGA Name: Ameresco Santa Cruz Energy, LLC o Resource Capacity: 3.04 MW o COD: February 2, 2006 Keller Canyon Landfill Generating Plant o CAISO Resource ID: KIRKER_7_KELCYN o PGA Name: Ameresco Keller Canyon, LLC o Resource Capacity: 3.56 MW o COD: August 1, 2009 Ox Mountain Landfill Generating Plant o CAISO Resource ID: OXMTN_6_LNDFIL o PGA Name: Ameresco Half Moon Bay, LLC o Resource Capacity: 10.62 o COD: April 1, 2009 Johnson Canyon Landfill Generating Plant o CAISO Resource ID: Pending o PGA Name: Ameresco Johnson Canyon, LLC o Resource Capacity: 1.50 MW o Estimated COD: February, 19, 2013 San Joaquin Landfill Generating Plant o CAISO Resource ID: Pending o PGA Name: Ameresco San Joaquin, LLC o Resource Capacity: 6.20 MW o Estimated COD: April 1, 2013 The Generating Facility characteristics, such as resource capacity, may change over the course of time, and such changes will not reduce or alter Contracting Member’s obligations as set forth in this Agreement. Provided, however, that Contracting Member shall provide written notice of the change in characteristics to NCPA. 17 Operating Agreement Between NCPA and City of Palo Alto EXHIBIT C NCPA SUMMARIES OF LIABILITY INSURANCE Attached are the following summaries of insurance coverage, as applicable to the Services being provided by NCPA hereunder: 1. Workers’ Compensation & Employer’s Liability 2. Automobile Liability & Physical Damage 3. Excess Liability 2050354.1 City of Palo Alto (ID # 3394) City Council Staff Report Report Type: Consent Calendar Meeting Date: 4/15/2013 City of Palo Alto Page 1 Summary Title: Building Division On-Call Service Agreements Title: Approval of Six On-call Building and Inspection Services Contracts as follows: 1) 4Leaf in the amount of $725,000, 2) Interwest Consulting Group in the amount of $50,000, 3) CSG Consultants in the amount of $50,000, 4) West Coast Code Consultants in the amount of $385,000, 5) Kutzmann & Associates in the amount of $240,000, and 6) TRB & Associates in the amount of $50,000 From: City Manager Lead Department: Planning and Community Environment Recommendation Staff recommends that Council authorize the City Manager or his designee to execute the attached six contracts (Attachments A - F) with various firms to provide on-call services for Development Services. Executive Summary The attached six contracts will allow Development Services to secure specialized technical support that is needed from time to time to process permit applications, perform plan reviews and conduct inspections during periods of fluctuating workload and/or when staffing shortages may occur. Furthermore it is to dedicate additional staff resources to very large projects when that is specifically requested and paid for by applicants. Background Development Services has historically maintained contracts with several firms to provide the various on-call services described above. In recent years, as the City of Palo Alto Page 2 staffing level of Development Services has decreased, there has been a greater reliance on the use of on-call service providers to meet performance objectives, particularly as the economy has rebounded and the rate of building and development activity in the city has accelerated. Because the most recent on-call service contracts have expired and staff anticipates that the demand for Building Division services may remain strong for at least the next few years, new on-call contracts are needed to ensure continued service delivery that is efficient, responsive and cost-effective. At the same time, these volumes can be volatile from year to year depending on the economy. Staff is also committed to a model that affords us the ability to quickly scale staffing levels to correspond to workload. Discussion The process to renew Development Service’s on-call service contracts began with the solicitation of proposals from qualified firms (RFP #142065B). The RFP identified three types of services that may be needed from time to time and allowed responding firms to propose on any one or combination of the three services. Following is a brief description of these services: A. Permit Processing Services Consultants will be responsible for providing permit-technician, clerical and/or administrative services as requested by the City on an as needed basis to work on site at the Development Center with the knowledge, skills and abilities to perform various specified functions related to the processing of Building Permit applications. B. Building Plan Check Services Consultants will be responsible for providing building plan check services as requested by the City on an as needed basis. Plan check services will be provided either by supplying staff to work on site at the Development Center or by performing plan reviews off site at Consultants’ offices when plans are transmitted to Consultants by the City. The manner in which plan check services are to be performed will be determined by the Chief Building City of Palo Alto Page 3 Official. When requested to provide plan check services, Consultants will be expected to perform various specified services described in the RFP. C. Building Inspection Services Consultants will be responsible for providing building inspection services on an as needed basis, as requested by the City, to meet workload demands and service delivery goals. The City will use the services of Consultants to provide inspection staff to supplement the City’s regular staff. When requested to provide building inspection services, Consultants will be expected to perform various specified services described in the RFP. Ten firms responded to the RFP. Of these, seven firms proposed all three services; one proposed two of the services (Permit Processing and Building Plan Check); and two proposed one of the services (Building Plan Check). The proposals were then evaluated separately for each service category by an internal review team consisting of staff from Development Services, Planning Division and the Public Works Department using a 360 point rubric that was developed from evaluation criteria set forth in the RFP. Based on this, the final rankings of the proposals for each service category were as follows: Permit Processing Services Plan Check Services Inspection Services Vendor Score Vendor Score Vendor Score 4Leaf, Inc. 355 West Coast Code Consultants 356 4Leaf, Inc. 359 City of Palo Alto Page 4 Interwest Consulting Group 333 4Leaf, Inc. 349 Kutzmann & Associates 347 CSG Consultants 326 Kutzmann & Associates 347 CSG Consultants 314 West Coast Code Consultants 307 Interwest Consulting Group 340 Bureau Veritas 310 Bureau Veritas 303 TRB+ Associates 336 TRB+ Associates 284 Kutzmann & Associates 264 RK Associates 316 West Coast Code Consultants 274 TRB+ Associates 261 CSG Consultants 311 Shums Coda Associates 258 Shums Coda Associates 252 Shums Coda Associates 302 Bureau Veritas 296 Plan Review Consultants, Inc. 269 It is anticipated that there will be a substantial amount of building and development activity anticipated over the next several years. By the same token, these volumes can be volatile from year to year depending on the economy. The corresponding demand for contract plan check, permit processing, and inspection services will be placed on Development Services. Therefore, the expected staffing levels that will be necessary to meet these demands can be met with on-call contracts with multiple firms. This will ensure that the service levels established through the Development Center Blueprint initiative continue to be met while retaining the ability to quickly scale staff levels to correspond to workloads. Further, the flexibility provided by having multiple on-call contracts in place will ensure that work, when assigned, is distributed equitably amongst the various firms and that any potential conflicts of interest can be avoided. City of Palo Alto Page 5 With this in mind, staff believes that there should be not less than three firms available at any time to provide permit processing services, five firms available to provide plan check services and three firms available to provide inspection services. Given this, it is recommended that on-call contracts be approved with the following six firms for the services noted: 1. 4Leaf, Inc. (Permit Processing, Plan Check, Inspection) 2. Interwest Consulting Group (Permit Processing, Plan Check) 3. CSG Consultants (Permit Processing, Inspection) 4. West Coast Code Consultants (Plan Check) 5. Kutzmann & Associates (Plan Check, Inspection) 6. TRB+ Associates (Plan Check) Timeline The term for all six on-call contracts will be for one year, with opions to renew each for two additional one year periods, not to exceed three years total. Resource Impact Based on development forecasts, Development Services combined contracts for plan check, permitting, and inspection services are not expected to exceed $1.5 million per year. It is anticipated that the estimated costs for these contracts ($350,000) for the remainder of the current fiscal year can be supported through existing resources. The ongoing ability to support these expenses is being evaluated by Development Services and the Office of Management and Budget. A recommendation to adjust the budget for these contracts may be included in the 2014 Proposed Operating Budget if necessary. Policy ImplicationsAs noted, the approval of these on-call contracts will allow Development Services to meet service delivery goals established as part of the Development Center Blueprint initiative and to continue to support and implement various Policies and Programs set forth in the City’s Comprehensive Plan Chapters 5 (Natural Environment) and 7 (Business and Economics). City of Palo Alto Page 6 Environmental Review Award of these on-call contracts is not a project under CEQA and no environmental review is required. Attachments: Attachment A: 4Leaf, Inc. Contract (PDF) Attachment B: Interwest Consulting Group Contract (PDF) Attachment C: CSG Consultants Contract (PDF) Attachment D: West Coast Code Consultants Contract (PDF) Attachment E: Kutzmann & Associates Contract (PDF) Attachment F: TRB+ Associates Contract (PDF) CITY OF PALO ALTO CONTRACT NO. C13149364 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND 4LEAF FOR PROFESSIONAL SERVICES This Agreement is entered into on this day of March, 2013, ("Agreement") by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("CITY"), and 4LEAF, a California Corporation, located at 211 0 Rheem Drive, Ste. A, Pleasanton, California, 94588, Telephone (925)462-5959 ("CONSULTANT"). RECITALS The following recitals are a substantive portion ofthls Agreement. A. CITY intends to solicit On-Call Permit Processing, Building Plan Check, and Building Inspection Services ("Project") and desires to engage a consultant to provide On-Call services in connection with the Project ("Services"). B. CONSULTANT has represented that it has the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY in reliance on these representations desires to engage CONSULTANT to provide the Services as more fully described in Exhibit "A", attached to and made a part of this Agreement. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree: AGREEMENT SECTION 1. SCOPE OF SERVICES. CONSULT ANT shall perform the Services described in Exhibit "A" in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY. ~ Optional On-Call Provision (This provision only applies if checked and only applies to on-call agreements. ) Services will be authorized by the City, as needed, with a Task Order assigned and approved by the City's Project Manager. Each Task Order shall be in substantially the same form as Exhibit A-I. Each Task Order shall designate a City Project Manager and shall contain a specific scope of work, a specific schedule of performance and a specific compensation amount. The total price of all Task Orders issued under this Agreement shall not exceed the amount of Compensation set forth in Section 4 of this Agreement. CONSULTANT shall only be compensated for work performed under an authorized Task Order and the City may elect, but is not required, to authorize work up to the maximum compensation amount set forth in Section 4. Professional Services Rev. Nov. 1,2011 SECTION 2. TERM. The tenn of this Agreement shall be from April I, 2013 through March 31,2014 with an option to extend the agreement for two, one year, additional tenns, unless tenninated earlier pursuant to Section 19 of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the perfonnance of Services under this Agreement. CONSULTANT shall complete the Services within the tenn of this Agreement and in accordance with the schedule set forth in Exhibit "B", attached to and made a part of this Agreement. Any Services for which times for perfonnance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY's agreement to extend the tenn or the schedule for perfonnance shaH not preclude recovery of damages for delay ifthe extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULT ANT for perfonnance of the Services described in Exhibit "A", including both payment for professional services and reimbursable expenses, shall not exceed Seven Hundred Twenty Five Thousand Dollars ($725,000.00). In the event Additional Services are authorized, the total compensation for services and reimbursable expenses shall not exceed Seven Hundred Twenty Five Thousand Dollars ($725,000.00). The applicable rates and schedule of payment are set out in Exhibit "C-l", entitled "HOURLY RATE SCHEDULE," which is attached to and made a part of this Agreement. Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit "C". CONSULTANT shall not receive any compensation for Additional Services perfonned without the prior written authorization of CITY. Additional Services shall mean any work that is detennined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described in Exhibit "A". SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the services perfonned and the applicable charges (including an identification of personnel who perfonned the services, hours worked, hourly rates, and reimbursable expenses), based upon the CONSULTANT's billing rates (set forth in Exhibit "C-l "). If applicable, the invoice shall also describe the percentage of completion of each task. The infonnation in CONSULTANT's payment requests shall be subject to verification by CITY . CONSULTANT shall send all invoices to the City's project manager at the address specified in Section 13 below. The City will generally process and pay invoices within thirty (30) days of receipt. SECTION 6. OUALIFICATIONS/STANDARD OF CARE. All of the Services shall be perfonned by CONSULTANT or under CONSULTANT's supervision. CONSULTANT represents that it possesses the professional and technical personnel necessary to perfonn the Services required by this Agreement and that the personnel have sufficient skill and experience to perfonn the Services assigned to them. CONSULTANT represents that it, its employees and subconsultants, if pennitted, have and shall maintain during the tenn of this Agreement all licenses, pennits, qualifications, insurance and approvals of whatever nature that are legally required to perfonn the Services. 2 Contract No. C13149364 Professional Services Rev. Nov. 1,2011 All of the services to be furnished by CONSULTANT under this agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services. SECTION 8. ERRORS/OMISSIONS. CONSULTANT shall correct, at no cost to CITY, any and all errors, omissions, or ambiguities in the work product submitted to CITY, provided CITY gives notice to CONSULTANT. If CONSULTANT has prepared plans and specifications or other design documents to construct the Project, CONSULTANT shall be obligated to correct any and all errors, omissions or ambiguities discovered prior to and during the course of construction of the Project. This obligation shall survive termination of the Agreement. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds ten percent (I 0%) of the CITY's stated construction budget, CONSULTANT shall make recommendations to the CITY for aligning the PROJECT design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. SECTION 10. INDEPENDENT CONTRACTOR. It is understood and agreed that in performing the Services under this Agreement CONSULTANT, and any person employed by or contracted with CONSULTANT to furnish labor and/or materials under this Agreement, shall act as and be an independent contractor and not an agent or employee of the CITY. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT's obligations hereunder without the prior written consent of the city manager. Consent to one assignment will not be deemed to be consent to any subsequent assignment. Any assignment made without the approval of the city manager will be void. SECTION 12. SUBCONTRACTING. IZlOption A: No Subcontractor: CONSULTANT shall not subcontract any portion of the work to be performed under this Agreement without the prior written authorization of the city manager or designee. CONSULTANT shall be responsible for directing the work of any subconsultants and for any compensation due to subconsultants. CITY assumes no responsibility whatsoever concerning J Contract No. C13149364 Professional Services Rev. Nov. 1,2011 compensation. CONSULT ANT shall be fully responsible to CITY for all acts and omissions of a subconsultant. CONSULTANT shall change or add subconsultants only with the prior approval of the city manager or his designee. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Craig Tole as the Project Manager to have supervisory responsibility for the performance, progress, and execution of the Services and Jamie Campbell as the Project Coordinator to represent CONSULTANT during the day-to-daywork on the Project. If circumstances cause the substitution of the project director, project coordinator, or any other key personnel for any reason, the appointment of a substitute project director and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY's project manager. CONSULTANT, at CITY's request, shall promptly remove personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property. The City's project manager is Peter Pirnejad, Development Services Department Palo Alto, CA 94303, Telephone (650)329-2349, Email peter.pirnejad@cityofpaloalto.org. The project manager will be CONSULTANT's point of contact with respect to performance, progress and execution of the Services. The CITY may designate an alternate project manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. Upon delivery, all work product, including without limitation, all writings, drawings, plans, reports, specifications, calculations, documents, other materials and copyright interests developed under this Agreement shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work pursuant to this Agreement shall be vested in CITY, and CONSULTANT waives and relinquishes all claims to copyright or other intellectual property rights in favor of the CITY. Neither CONSULTANT nor its contractors, if any, shall make any of such materials available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the scope of work. SECTION 15. AUDITS. CONSULTANT will permit CITY to audit, at any reasonable time during the term ofthis Agreement and for three (3) years thereafter, CONSULTANT's records pertairring to matters covered by this Agreement. CONSULTANT further agrees to maintain and retain such records for at least three (3) years after the expiration or earlier termination of this Agreement. SECTION 16. INDEMNITY. 16.1. To the fullest extent permitted by law, CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an "Indemnified Party") from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorneys fees, experts fees, court costs and disbursements ("Claims") that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the CONSULTANT, its officers, employees, agents or contractors under this 4 Contract No. C13149364 Professional Services Rev. Nov. 1,2011 Agreement, regardless of whether or not it is caused in part by an Indemnified Party. 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnifY an Indemnified Party from Claims arising from the active negligence, sole negligence or willful misconduct of an Indemnified Party. 16.3. The acceptance of CONSULTANT's services and duties by CITY shall not operate as a waiver ofthe right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. The waiver by either party of any breach or violation of any covenant, term, condition or provision of this Agreement, or of the provisions of any ordinance or law, will not be deemed to be a waiver of any other term, covenant, condition, provisions, ordinance or law, or of any subsequent breach or violation of the same or of any other term, covenant, condition, provision, ordinance or law. SECTION 18. INSURANCE. 18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit "D". CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best's Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY' s Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days' prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days' notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT's receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY's Purchasing Manager during the entire term ofthis Agreement. 18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT's liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be 5 Contract No. C13149364 Professional Services Rev. Nov. 1,2011 obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. Upon receipt of such notice, CONSULTANT will immediately discontinue its performance ofthe Services. 19 .2. CONSULTANT may terminate this Agreement or suspend its performance of the Services by giving thirty (30) days prior written notice thereof to CITY, but only in the event of a substantial failure of performance by CITY. 19.3. Upon such suspension or termination, CONSULTANT shall deliver to the City Manager immediately any and all copies of studies, sketches, drawings, computations, and other data, whether or not completed, prepared by CONSULTANT or its contractors, if any, or given to CONSULTANT or its contractors, ifany, in connection with this Agreement. Such materials will become the property of CITY. 19.4. Upon such suspension or termination by CITY , CONSULTANT will be paid for the Services rendered or materials delivered to CITY in accordance with the scope of services on or before the effective date (i.e., 10 days after giving notice) of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT's services which are of direct and immediate benefit to CITY as such determination may be made by the City Manager acting in the reasonable exercise ofhislher discretion. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 19.4,20, and 25. 19.5. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement. SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY: Office ofthe City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Purchasing Manager 6 Contract No. C13149364 Professional Services Rev. Nov. 1,2011 To CONSULTANT: Attention of the project director at the address of CONSULTANT recited above SECTION 21. CONFLICT OF INTEREST. 21.1. In accepting this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subconsultants, contractors or persons having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions ofthe Palo Alto Municipal Code and the Government Code of the State of California. 21.3. If the Project Manager determines that CONSULTANT is a "Consultant" as that term is defined by the Regulations of the Fair Political Practices Commission, CONSULTANT shall be required and agrees to file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act. SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. 7 Contract No. C13149364 Professional Services Rev. Nov. 1,2011 SECTION 23. ENVIRONMENT ALL Y PREFERRED PURCHASING AND ZERO WASTE REOUIREMENTS. CONSULTANT shall comply with the City's Environmentally Preferred Purchasing policies which are available at the City's Purchasing Department, incorporated by reference and may be amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements ofthe City's Zero Waste Program. Zero Waste best practices include first minimizing and reducing waste; second, reusing waste and third, recycling or compo sting waste. In particular, Consultant shall comply with the following zero waste requirements: • All printed materials provided by Consultant to City generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum 0[30% or greater post-consumer content paper, unless otherwise approved by the City's Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post-consumer material and printed with vegetable based inks. • Goods purchased by Consultant on behalf of the City shall be purchased in accordance with the City's Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Office. • Reusable/retumable pallets shall be taken back by the Consultant, at no additional cost to the City, for reuse or recycling. Consultant shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. NON-APPROPRIATION 24.1. This Agreement is subjectto the fiscal provisions of the Charter ofthe City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 25. MISCELLANEOUS PROVISIONS. 25.1. This Agreement will be governed by the laws of the State of California. 25.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California. 25.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys' fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys' fees paid to third parties. 8 Contract No. Cl3149364 Professional Services Rev. Nov. 1,2011 25.4. This document represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This document may be amended only by a written instrument, which is signed by the parties. 25.5. The covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators, assignees, and consultants of the parties. 25.6. If a court of competent jurisdiction finds or rules that any provision of this Agreement or any amendment thereto is void or unenforceable, the unaffected provisions of this Agreement and any amendments thereto will remain in full force and effect. 25.7. All exhibits referred to in this Agreement and any addenda, appendices, attachments, and schedules to this Agreement which, from time to time, may be referred to in any duly executed amendment hereto are by such reference incorporated in this Agreement and will be deemed to be a part of this Agreement. 25.8 If, pursuant to this contract with CONSULTANT, City shares with CONSULTANT personal information as defined in California Civil Code section 1798.81.5(d) about a California resident ("Personal Information"), CONSULTANT shall maintain reasonable and appropriate security procedures to protect that Personal Information, and shall inform City immediately upon leaming that there has been a breach in the security of the system or in the security of the Personal Information. CONSULTANT shall not use Personal Information for direct marketing purposes without City's express written consent. 25.9 All unchecked boxes do not apply to this agreement. 25.10 The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. 25.11 This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement 9 Contract No. C13149364 Professional Services Rev. Nov. 1,2011 IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement on the date first above written. CITY OF PALO ALTO 4LEAF~' . By: ~I/II City Manager 7' Name: ~I Ai D U6(.,-~ Title: fiUWfA4J APPROVED AS TO FORM: Senior Asst. City Attorney Attachments: EXHIBIT "A": EXHIBIT "A-I" EXHIBIT "B": EXHIBIT "C": EXHIBIT "C-l": EXHIBIT "D": SCOPE OF WORK ON CALL TASK ORDER SCHEDULE OF PERFORMANCE COMPENSATION SCHEDULE OF RATES INSURANCE REQUIREMENTS 10 Contract No. C13149364 Professional Services Rev. Nov. 1, 2011 EXHIBIT A SCOPE OF SERVICES CONSULTANT shall provide professional services consisting of Permit Processing, Building Plan Check, Building and Inspection services on an as-needed (on-call) basis. Permit Processing Services CONSULTANT shall be responsible for providing permit-technician, clerical and/or administrative services as requested by the City on an as needed basis. CONSULTANT shall provide staff, on an as need basis that shall work on-or off-site at the City's Development Center under the supervision of the Development Services Director or designee which may include the Chief Building Official, Inspection Services Supervisor and/or Development Center Manager with the knowledge, skills and abilities to perform the following functions: Enter permit and related data into the Accela permit tracking system; research, compile and prepare various limited reports and presentation graphics; assist the general public at the front counter or by phone/e-mail regarding building, planning, engineering and fire permit requirements, application and permit fees, application filing procedures and processing, and permit status; accept permit and related applications and collect fees; screen plans and application materials for compl,eteness and for conformance with City ordinances, standards, policies and guidelines; review application materials for compliance with conditions of project approval; route plans to other city departments/divisions for review; approve and issue minor permits; research and respond to public inquiries; build and maintain positive working relationships with co-workers, City staff and the public using principles of good customer service; and perform related duties as assigned. When requested to furnish staff, CONSULTANT shall provide resumes (including licenses and other credentials) of all candidates who shall be available to perform Permit Processing services. The City retains the right to select or reject any or all candidates based on a review of resumes and/or subsequent interviews. Building Plan Check Services CONSULTANT shall be responsible for providing building plan check services as requested by the City on an as needed basis. Plan check services shall be provided either by supplying staff to work on site at the City's Development Center under the direction of the Chief Building Official or by performing plan reviews off site at CONSULTANT'S office when plans are transmitted to CONSULTANT by the City. The manner in which plan check services will be performed shall be determined by the City's Chief Building Official. When requested to provide plan check services, CONSULTANT shall be expected to perform the following services: 12 Contract No. C13149364 Professional Services Rev. Nov. 1,2011 1. Preliminary plan review consultations in CONSULTANT'S office or by telephone/e-mail. 2. Initial plan review of project plans and other related documents submitted in conjunction with applications for Building Permits to determine compliance with the adopted uniform codes, applicable laws, regulations and local ordinances. The services shall include, but not be limited to, review of the following, as applicable to each project: Architectural, Structural, Civil, Electrical, Mechanical and Plumbing plans, structural calculations, accessibility compliance, fire and life safety components, geotechnical reports, Green Building and Energy Code compliance documentation and deferred submittal items. 3. Provide the applicant's designee and the City, a typed list of items needing clarification or change to achieve conformance with the above regulations. 4. Maintain sufficient communication with the applicant's designee(s), either by telephone/e- mail, mail or meeting in CONSULTANT'S office and perform all necessary plan rechecks to achieve conformance to the regulations. 5. Provide recommendations and acts as liaison to the Chief Building Official, or his designee, either by maille-mail, telephone or in CONSULTANT'S office, to ensure compliance with Palo Alto's Municipal Code requirements. 6. Perform plan reviews of revisions to plans that have previously been approved for permit issuance, or perform plan reviews of changes to plans prior to such approval. 7. Attend meetings related to proposed building projects at the request of the Chief Building Official at locations other than CONSULTANT'S office. 8. Provide City with periodic plan review status reports for all projects assigned by the Chief Building Official. When requested to furnish staff, CONSULTANT shall provide resumes (including licenses and other credentials) of all candidates who shall be available to perform Building Plan Check services. The City retains the right to select or reject any or all candidates based on a review of resumes and/or subsequent interviews. Building Inspection Services CONSULTANT shall be responsible for providing building inspection services on an as needed basis, as requested by the City, to meet workload demands and service delivery goals. The City shall 13 Contract No. C13149364 Professional Services Rev. Nov. 1,2011 use the services of the CONSULTANT'S firm to provide inspection staff to supplement the City's regular staff. When requested to provide building inspection services, CONSULTANT shall perform the following services: 1. Perform all requested inspections and re-inspections for compliance with City and State codes and applicable regulations. 2. Coordinate all inspection and re-inspection requests. 3. Confer with the Chief Building Official, building plan check supervisor, and/or Inspection Services Supervisor on all discretionary decisions or requests for alternate materials or types of construction. 4. Coordinate with the Chief Building Official and/or Inspection Services Supervisor on all Certificates of Occupancy to ensure that all applicable City departments and regulatory agencies have approved the project. 5. Enter all inspection records into the Accela permit tracking system. Maintain all inspection records for all assigned projects, to be turned over to the City within five working days of when requested by the City. Records include all correction notices and all documentation related to design changes. 6. Coordinate inspection activities with any and all third-party inspectors and special inspection agents retained by owners and/or their contractors. 7. Have CASp certified staff available to the City on an as-needed basis. 8. Participate in and attend weekly Inspection Division staff meetings and training events sponsored by the City. When requested to furnish staff, CONSULTANT shall provide resumes (including licenses and other credentials) of all candidates who shall be available to perform Building Inspection services. The City retains the right to select or reject any or all candidates based on a review of resumes and/or subsequent interviews. 14 ContraetNa. C13149364 Professional Services Rev. Nov. 1,2011 EXHIBIT "A-l" PROFESSIONAL SERVICES TASK ORDER Consultant bereby agrees to perfonn the work detailed below in accordance with all the tenns and conditions of the Agreement referenced in Item lA below. All exhibits referenced in Item 8 are incorporated into the Agreement by this reference. The Consultant shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below. CONTRACT NO. Purchase Requisition No. MASTER AGREEMENT NUMBER TASK ORDER NO. CONSULTANT ISSUE DATE lAo lB. 2. 3. PERJOD OF PERFORMANCE: START: COMPLETION: 4 TOTAL TASK ORDER PRJCE: $ BALANCE REMAINING IN MAS':-:T=E=R-A,...G::RE-=E::-ME---N--T-,$ _________ ~~~ 5. BUDGET CODE: _____ _ COST CENTER COST ELEMENT WBS/CIP PHASE 6. CITY PROJECT MANAGER'S NAMEIDEPARTMENT ~~~- 7. DESCRJPTION OF SCOPE OF SERVICES MUST INCLUDE: • WORK TO BE PERFORMED • SCHEDULE OF WORK • BASIS FOR PAYMENT & FEE SCHEDULE • DELIVERABLES • REIMBURSABLES (with "not to exceed" cost) 8. ATTACHMENTS: A: Scope of Services B: ~~~~~ ________ ~ I hereby authorize the performance of the work described above in this Task Order. APPROVED: CITY OF PALO ALTO BY: ________________________ _ Name ____________________ __ Title __________________________ _ Date __________________________ _ 15 I hereby acknowledge receipt and acceptance ofthis Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: COMPANYNAME:~~~ ________ __ BY: ________________________ ~ Narne __________________________ __ Title ________________________ _ Date __________________________ ~ Professional Services Rev. Nov. 1,2011 Contract No. C13149364 EXHIBIT "B" SCHEDULE OF PERFORMANCE (N ot Applicable) 16 Contract No, C13149364 Professional Services Rev. Nov. 1,2011 EXHIBIT "C" COMPENSATION The CITY agrees to compensate the CONSULT ANT for professional services performed in accordance with the terms and conditions ofthis Agreement based on the hourly rate schedule attached as Exhibit C-l. The compensation to be paid to CONSULTANT under this Agreement for all services described in Exhibit "A" ("Services") and reimbursable expenses shall not exceed $725,000.00. CONSULTANT agrees to complete all Services, including reimbursable expenses, within this amount. In the event CITY authorizes any Additional Services, the maximum compensation shall not exceed $725,000.00. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are: A. Travel outside the San Francisco Bay area, including transportation and meals, will be reimbursed at actual cost subject to the City of Pal 0 Alto's policy for reimbursement of travel and meal expenses for City of Palo Alto employees. B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges are reimbursable at actual cost. All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense anticipated to be more than $0.00 shall be approved in advance by the CITY's project manager. ADDITIONAL SERVICES The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY's project manager's request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT's proposed maximum compensation, including reimbursable expenses, for such services based on the rates set forth in Exhibit C-l. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY's Project Manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement. 17 Contract No. C13149364 Professional Services Rev. Nov. 1,2011 OrOPTIONAL] Work required because the following conditions are not satisfied or are exceeded shall be considered as Additional Services: 18 Contract No. C13149364 Professional Services Rev. Nov. 1,2011 EXHIBIT "C-l" HOURLY RATE SCHEDULE Plan Review Services to be performed off-site at the following rates: Plan Check Service Fee for 1,( Review and Hourly rate for onsite and/or subsequent rechecks greater than 3 reviews offsite (with authorization from City) Life Health Safety, 65% of City fee $llOlhour structural Structural, ADA $851hour non-structural Requirements and Title 24 Energy Requirements Plan Checks Plumbingl 40% of City fee $851hour non-structural MechanicaIlElectrical Only Plan Checks Structural Only 40% of City fee $llOlhour structural Plan Checks Additional Building Department Services Senior Combination Building Inspector ..................................................... $95lhour Commercial Building Inspector .................................................................. $85lhour Residential Building Inspector ................................................................... $801hour Code Enforcement ...................................................................................... $75lhour On-Site Plan Review Engineer .................................................................... $100 -1I0/hour On-Site Non Structural Plans Examiner ...................................................... $85lhour Permit Technician ....................................................................................... $48lhour Inspector of Record (including DSA or OSHPD) ........................................ $1151hour Public Works Inspector ............................................................................... $95lhour Temporary Building Official ........................................................................ $1301hour Deputy Building Official .............................................................................. $1151hour CASp Inspection .......................................................................................... $1751hour Hourly overtime charge per inspector ....................................................... 1.5 x hourly rate Mileage (for inspections performed within the City) ................................. IRS Rate + 20% 18 Contract No. C13149364 Professional Services Rev Nov. 1,2011 EXHIBIT "D" INSURANCE REQIDREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WIlliAM BEST'S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN TIlE STATE OF CALIFORNIA, AWARD IS CONTINGENT ON COMPLIANCE wrrn CITY'S INSURANCE REOUIREMENTS, AS SPECIFIED, BELOW: MINIMUM LIMITS REQUIRED TYPE OF COVERAGE REQUIREMENT EACH YES YES YES YES YES YES OCCURRENCE AGGREGATE WORKER'S COMPENSATION STATUTORY EMPLOYER'S LIABILITY STATUTORY BODILY INillRY $1,000,000 $1,000,000 GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE $1,000,000 $1,000,000 PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL BODILY INJURY & PROPERTY DAMAGE $1,000,000 $1,000,000 LIABILITY COMBINED. BODILY INJURY $1,000,000 $1,000,000 -EACH PERSON $1,000,000 $1,000,000 -EACH OCCURRENCE $1,000,000 $1,000,000 AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED PROPERTY DAMAGE $1,000,000 $1,000,000 BODILY INJURY AND PROPERTY $1,000,000 $1,000,000 DAMAGE, COMBINED PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT 1BROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS' COMPENSATION, EMPLOYER'S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPWYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY (30) DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR'S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY'S PRIOR AFPROV AL. II. CONTACTOR MUST SUI3MIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE. III. ENDORSEMENT PROVISIONS, WIlli RESPECT TO THE INSURANCE AFFORDED TO "ADDITIONAL INSUREDS" A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. 19 Contract No. C13149364 Professional Services Rev Nov. 1,2011 B. CROSS LIABILITY THE NAMING OF MORE 1HAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT TBIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION I. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FORANYREASON OTHER THAN THE NON·PA YMENT OF PREMIUM, THE ISSUINGCOMP ANY SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON·PA YMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. NOTICES SHALL BE MAILED TO: PURCHASING AND CONTRACT ADMINISTRATION CITY OF PALO ALTO P.O. BOX 10250 PALO ALTO, CA 94303 20 Contract No. C13149364 Professional Services Rev Nov. 1,2011 CITY OF PALO ALTO CONTRACT NO. C13149365 AGREEMENT BETWEEN THE CITY OF PALO ALTO& INTERWEST CONSULTING GROUP FOR PROFESSIONAL SERVICES This Agreement is entered into on this day of March, 2013, ("Agreement") by and between the CITY OF PALO ALTO, a California chattered municipal corporation ("CITY"), and INTERWEST CONSULTING GROUP, a California corporation, located at 6280 W. Las Positas Boulevard, Suite 220, Pleasanton, California, 94588, Telephone (925)462-1 I 14 ("CONSULTANT"). RECITALS The following recitals are a substantive portion of this Agreement. A. CITY intends to solicit On-Call Permit Processing and Building Plan Check Services ("Project") and desires to engage a consultant to provide On-Call services in connection with the Project ("Services"). B. CONSULTANT has represented that it has the necessmy professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY in reliance on these representations desires to engage CONSULTANT to provide the Services as more fully described in Exhibit "A", attached to and made a pmt of this Agreement. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree: AGREEMENT SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit "A" in accordance with the terms and conditions contained in this Agreement. The perf01mance of all Services shall be to the reasonable satisfaction of CITY. I2<;J Optional On-Call Provision (This provision only applies if checked and only applies to on-call agreements. ) Services will be authorized by the City, as needed, with a Task Order assigned and approved by the City's Project Manager. Each Task Order shall be in substantially the same form as Exhibit A-I. Each Task Order shall designate a City Project Manager and shall contain a specific scope of work, a specific schedule of performance and a specific compensation amount. The total price of all Task Orders issued under this Agreement shall not exceed the amount of Compensation set forth in Section 4 of this Agreement. CONSULT ANT shall only be compensated for work perf01med under an authorized Task Order and the City may elect, but is not required, to authorize work up to the maximum compensation amount set f01th in Section 4. Professional Services Rey. Nov. 1,2011 SECTION 2. TERM. The term of this Agreement shall be from April 1, 2013 through March 31,2014 with an option to extend the agreement for two, one year, additional terms, unless terminated earlier pursuant to Section 19 of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the tenn of this Agreement and in accordance with the schedule set f01ih in Exhibit "B", attached to and made a pmi of this Agreement. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY's agreement to extend the term or the schedule for pe1fonnance shall not preclude recove1Y of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit "A", including both payment for professional services and reimbursable expenses, shall not exceed Fifty Thousand Dollars ($50,000.00). In the event Additional Services are authorized, the total compensation for services and reimbursable expenses shall not exceed Fifty Thousand Dollars ($50,000.00). The applicable rates and schedule of payment are set out in Exhibit "C-l ", entitled "HOURLY RATE SCHEDULE," which is attached to and made a pati of this Agreement. Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit "C". CONSULTANT shall not receive any compensation for Additional Services perfonned without the prior written authorization of CITY. Additional Services shall mean any work that is determined by CITY to be necessaty for the proper completion of the Project, but which is not included within the Scope of Services described in Exhibit "A". SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the services performed and the applicable charges (including an identification of personnel who performed the services, hours worked, hourly rates, and reimbursable expenses), based upon the CONSULTANT's billing rates (set forth in Exhibit "C-l "). If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULT ANT's payment requests shall be subject to verification by CITY. CONSULTANT shall send all invoices to the City's project manager at the address specified in Section 13 below. The City will generally process and pay invoices within thitiy (30) days of receipt. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All of the Services shall be performed by CONSULT ANT or under CONSULTANT's supervision. CONSULTANT represents that it possesses the professional and technical personnel necessaty to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subcollsultants, ifpe1mitted, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All of the services to be fumished by CONSULTANT under this agreement shall meet the 2 Contract No. C13149365 Professional Services Rev. Nm'. 1,2011 professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout Califomia under the same or similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services. SECTION 8. ERRORS/OMISSIONS. CONSULTANT shall correct, at no cost to CITY, any and all errors, omissions, or ambiguities in the work product submitted to CITY, provided CITY gives notice to CONSULT ANT. If CONSULTANT has prepared plans and specifications or other design documents to construct the Project, CONSULTANT shall be obligated to correct any and all errors, omissions or ambiguities discovered prior to and during the course of construction of the Project. This obligation shall survive termination of the Agreement. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds ten percent (10%) of the CITY's stated construction budget, CONSULTANT shall make recommendations to the CITY for aligning the PROJECT design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. SECTION 10. INDEPENDENT CONTRACTOR. It is understood and agreed that in performing the Services under this Agreement CONSULTANT, and any person employed by or contracted with CONSULTANT to furnish labor andlor materials under this Agreement, shall act as and be an independent contractor and not an agent or employee of the CITY. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the perfol1uance of any of CONSULTANT's obligations hereunder without the prior written consent of the city manager. Consent to one assignment will not be deemed to be consent to any sub seq uent assignment. Any assignment made without the approval of the city manager will be void. SECTION 12. SUBCONTRACTING. ~Option A: No Subcontractol': CONSULTANT shall not subcontract any portion of the work to be performed under this Agreement without the prior written authorization of the city manager or designee. DOption B: Subcontracts Authorized: Notwithstanding Section 11 above, CITY agrees that subconsultants may be used to complete the Services. The subconsultants authorized by CITY to perform work on this Project are: 3 Contract No. Cl3149365 Professional Services Re\,. Nm'. 1,2011 CONSULTANT shall be responsible for directing the WDl'k of any subconsultants and for any compensation due to subconsultants. CITY assumes no responsibility whatsoever concerning compensation. CONSULTANT shall be fully responsible to CITY for all acts and omissions of a subconsultant. CONSULTANT shall change or add subconsultants only with the priDl' approval of the city manager or his designee. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Greg Shriver as the project director to have supervisDl'Y responsibility fDl' the perfDlmance, progress, and execution of the Services and to represent CONSULTANT during the day-to-day work on the Project. If circumstances cause the substitution of the project director, project cODl'dinator, Dl' any other key personnel for any reason, the appointment of a substitute project directDl' and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY's project manager. CONSULTANT, at CITY's request, shall promptly remove personnel who CITY finds do not perfDl'm the Services in an acceptable manner, are uncooperative, Dl' present a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property. The City's project manager is Peter Pirnejad, Development Services Department Palo Alto, CA 94303, Telephone (650)329-2349, Email peter.pirnejad@cityofpaloalto.org. The project manager will be CONSULTANT's point of contact with respect to performance, progress and execution of the Services. The CITY may designate an alternate project manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. Upon delivelY, all WDl'k product, including without limitation, all writings, drawings, plans, reports, specifications, calculations, documents, other materials and copyright interests developed under this Agreement shall be and remain the exclusive property of CITY without restriction Dl' limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work pursuant to this Agreement shall be vested in CITY, and CONSULTANT waives and relinquishes all claims to copyright Dl' other intellectual propeliy rights in favor of the CITY. Neither CONSULTANT nor its contractors, if any, shall make any of such materials available to any individual Dl' Dl'ganization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in Dl' application to circumstances not contemplated by the scope of work. SECTION 15. AUDITS. CONSULTANT will pelmit CITY to audit, at any reasonable time during the term of this Agreement and fDl' three (3) years thereafter, CONSULTANT's recDl'ds peliaining to matters covered by this Agreement. CONSULTANT nnther agrees to maintain and retain such records for at least three (3) years after the expiration Dl' earlier tenllination of this Agreement. SECTION 16. INDEMNITY. r:g)[Option A applies to the following design professionals pursuant to Civil Code Section 2782.8: architccts; landscape architects; "cgistcrcd professional engineers and licensed professional land sUl'Veyors.] 16.1. To the fullest extent permitted by law, CONSULT ANT shall protect, indemnifY, defend and hold harmless CITY, its Council members, officers, employees and agents (each an "Indemnified Party") from and against any and all demands, claims, or liability of any nature, including death or injUly to any person, propeliy damage or any other loss, including all 4 Contract No. C13149365 Professional Services Re\'. No\'. 1,2011 costs and expenses of whatever nature including attomeys fees, experts fees, court costs and disbursements ("Claims") that arise out of, pel1ain to, or relate to the negligence, recklessness, or willful misconduct of the CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnifY an Indemnified Party from Claims arising from the active negligence, sole negligence or willful misconduct of an Indemnified Party. 16.3. The acceptance of CONSULTANT's services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. The waiver by either party of any breach or violation of any covenant, term, condition or provision of this Agreement, or of the provisions of any ordinance or law, will not be deemed to be a waiver of any other term, covenant, condition, provisions, ordinance or law, or of any subsequent breach or violation of the same or of any other telm, covenant, condition, provision, ordinance or law. SECTION 18. INSURANCE. 18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in filiI force and effect during the telm of this Agreement, the insurance coverage described in Exhibit "D". CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best's Key Rating Guide ratings of A-:VIl or higher which are licensed or authorized to transact insurance business in the State of Califomia. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY's Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thiJ1y (30) days' prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days' notice to CONSULT ANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT's receipt of such notice. CONSULTANT shall be responsible for ensuring that CUiTent cel1ificates evidencing the insurance are provided to CITY's Purchasing Manager during the entire term of this Agreement. 18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSUL TANT's liability hereunder nor to fillfill the indemnification provisions 5 Contract No. CIJI49365 Professional Services Rev. Nov. 1,2011 of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injUlY, or loss caused by or directly arising as a result of the Services perf0111led under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the tel111 has expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may suspend the performance of the Services, in whole or in part, or tel111inate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. Upon receipt of such notice, CONSULTANT will immediately discontinue its performance of the Services. 19 .2. CONSULTANT may tel111inate this Agreement or suspend its perfol111ance of the Services by giving thirty (30) days prior written notice thereof to CITY, but only in the event ofa substantial failure of performance by CITY. 19.3. Upon such suspension or termination, CONSULTANT shall deliver to the City Manager immediately any and all copies of studies, sketches, drawings, computations, and other data, whether or not completed, prepared by CONSULTANT or its contractors, if any, or given to CONSULTANT or its contractors, if any, in corUlection with this Agreement. Such materials will become the property of CITY. 19.4. Upon such suspension or tennination by CITY, CONSUL TANTwill be paid for the Services rendered or materials delivered to CITY in accordance with the scope of services on or before the effective date (i.e., 10 days after giving notice) of suspension or termination; provided, however, if this Agreement is suspended or tenninated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT's services which are of direct and immediate benefit to CITY as such determination may be made by the City Manager acting in the reasonable exercise ofhis/her discretion. The following Sections will survive any expiration or termination of this Agreement: 14,15,16,19.4,20, and 25. 19.5. No payment, partial payment, acceptance, or pattial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement. SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by celtified mail, addressed as follows: To CITY: Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Purchasing Manager 6 Contract No. Ci3149365 Professional Services Re\'. No\', 1,2011 To CONSULTANT: Attention of the project director at the address of CONSULTANT recited above SECTION 21. CONFLICT OF INTEREST. 21.1. In accepting this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT ft1l1her covenants that, in the perfonnance of this Agreement, it will not employ subconsultants, contractors or persons having such an interest. CONSULT ANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee ofClTY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California. 21.3. If the Project Manager determines that CONS ULT ANT is a "Consultant" as that term is defined by the Regulations of the Fair Political Practices Commission, CONSULT ANT shall be required and agrees to file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Refonn Act. SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. CONSULT ANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REOUIREMENTS. CONSULTANT shall comply with the City'S Enviroll1l1entally Preferred Purchasing policies which are available at the City's Purchasing Department, incorporated by reference and may be amended from time to time. CONS UL T ANT shall comply with waste reduction, reuse, recycling and disposal requirements of the City'S Zero Waste Program. Zero Waste best practices include first minimizing and reducing waste; second, reusing waste and third, recycling or composting waste. In particular, Consultant shall comply with the following zero waste requirements: • All printed materials provided by Consultant to City generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, rep0l1s, and public education materials, shall be double-sided and printed on a minimum of3 0% or greater post -consumer content paper, unless otherwise approved by the City'S Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of30% or greater post-consumer material and printed with vegetable based inks. • Goods purchased by Consultant on behalf of the City shall be purchased in 7 Contract No. Cl3149365 Professional Sen'ices Rev. Nov. 1,2011 accordance with the City's Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Office. • Reusable/returnable pallets shall be taken back by the Consultant, at no additional cost to the City, for reuse or recycling. Consultant shall provide documentation from the facility accepting the pallets to verifY that pallets are not being disposed. SECTION 24. NON-APPROPRIATION 24.1. This Agreement is subject to the fiscal provisions of the Chat1er 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 fimds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a p011ion of the fiscal year and funds for this Agreement are no longer available. This section shall take precedence in the event of a conflict with any other covenant, tenn, condition, or provision of this Agreement. SECTION 25. MISCELLANEOUS PROVISIONS. 25.1. This Agreement will be governed by the laws of the State of California. 25.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California. 25.3. The prevailing pa11y in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys' fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys' fees paid to third parties. 25.4. This document represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This document may be amended only by a written instrument, which is signed by the patties. 25.5. The covenants, terms, conditions and provisions ofthis Agreement will apply to, and will bind, the heirs, successors, executors, administrators, assignees, and consultants of the pa11ies. 25.6. If a court of competent jurisdiction finds or rules that any provision of this Agreement or any amendment thereto is void or unenforceable, the unaffected provisions of this Agreement and any amendments thereto will remain in full force and effect. 25.7. All exhibits referred to in this Agreement and any addenda, appendices, attachments, and schedules to this Agreement which, from time to time, may be refen'ed to in any duly executed amendment hereto are by such reference incorporated in this Agreement and will be deemed to be a part of this Agreement. 8 Contract No. CI3149365 Professional Services Rev. Nov. 1,2011 25.8 If, pursuant to this contract with CONSULTANT, City shares with CONSULTANT personal infonnation as defined in California Civil Code section 1798.81.5(d) about a California resident ("Personal Information"), CONSULTANT shall maintain reasonable and appropriate security procedures to protect that Personal Information, and shall inform City immediately upon learning that there has been a breach in the security of the system or in the security of the Personal Information. CONSULT ANT shall not use Personal Infonnation for direct marketing purposes without City's express written consent. 25.9 All unchecked boxes do not apply to this agreement. 25.10 The individuals executing this Agreement represent and wanant that they have the legal capacity and authority to do so on behalf of their respective legal entities. 25.11 This Agreement may be signed in multiple counterpat1s, which shall, when executed by all the pm1ies, constitute a single binding agreement 9 Contract No. C13149365 Professional Sen'ices Re\', Noy. 1,2011 IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement on the date first above written. CITY OF PALO ALTO City Manager By:----jil------"''-'---L-.C''=''' ___ _ Name: APPROVED AS TO FORM: Senior Ass!. Ci ty Attorney Attachments: EXHIBIT "A": EXHIBIT" A -\ " EXHIBIT "8": EXHIBIT "C": EXHIBIT "C-I": EXHIBIT "0": SCOPE OF WORK ON CALL TASK ORDER SCHEDULE OF PERFORMANCE COMPENSATION SCHEDULE OF RATES INSURANCE REQUIREMENTS 10 Contract No. Cl3J 49365 ProfessiOlltll Services Rev. Nov. 1,2011 EXHIBIT A SCOPE OF SERVICES CONSULTANT shall provide professional services consisting of Permit Processing and Building Plan Check services on an as-needed (on-call) basis. Pel·mit Pl"Ocessing Services CONSULTANT shall be responsible for providing permit-technician, clerical and/or administrative services as requested by the City on an as needed basis. CONSULTANT shall provide staff, on an as need basis that shall work on-or off-site at the City's Development Center under the supervision of the Development Services Director or designee which may include the Chief Building Official, Inspection Services Supervisor and/or Development Center Manager with the knowledge, skills and abilities to perform the following functions: Enter permit and related data into the Accela permit tracking system; research, compile and prepare various limited rep011s and presentation graphics; assist the general public at the front counter or by phone/e-mail regarding building, planning, engineering and fire pennit requirements, application and permit fees, application filing procedures and processing, and permit status; accept permit and related applications and collect fees; screen plans and application materials for completeness and for conformance with City ordinances, standards, policies and guidelines; review application materials for compliance with conditions of project approval; route plans to other city departments/divisions for review; approve and issue minor permits; research and respond to public inquiries; build and maintain positive working relationships with co-workers, City staff and the public using principles of good customer service; and perform related duties as assigned. When requested to furnish staff, CONSULTANT shall provide resumes (including licenses and other credentials) of all candidates who shall be available to perform Permit Processing services. The City retains the right to select or reject any or all candidates based on a review of resumes and/or subsequent interviews. Building Plan Checl{ Services CONSULT ANT shall be responsible for providing building plan check services as requested by the City on an as needed basis. Plan check services shall be provided either by supplying staff to work on site at the City's Development Center under the direction of the Chief Building Official or by performing plan reviews off site at CONSULTANT'S office when plans are transmitted to CONSULTANT by the City. The manner in which plan check services will be performed shall be determined by the City's Chief Building Official. When requested to provide plan check services, CONSULTANT shall be expected to perform the following services: 1. PreliminalY plan review consultations in CONSULTANT'S office or by telephone/e-mail. 12 Contract No. Cl3149365 Professional Services Rev, No\', 1,2011 2. Initial plan review of project plans and other related documents submitted in conjunction with applications for Building Permits to determine compliance with the adopted uniform codes, applicable laws, regulations and local ordinances. The services shall include, but not be limited to, review of the following, as applicable to each project: Architectural, Structural, Civil, Electrical, Mechanical and Plumbing plans, structural calculations, accessibility compliance, fire and life safety components, geotechnical reports, Green Building and Energy Code compliance documentation and deferred submittal items. 3. Provide the applicant's designee and the City, a typed list of items needing clarification or change to achieve conformance with the above regulations. 4. Maintain sufficient communication with the applicant's designee(s), either by telephone/e- mail, mail or meeting in CONSULT ANT'S office and perf 01111 all necessmy plan rechecks to achieve conformance to the regulations. 5. Provide recommendations and acts as liaison to the Chief Building Official, or his designee, either by maille-mail, telephone or in CONSULTANT'S office, to ensure compliance with Palo Alto's Municipal Code requirements. 6. Perform plan reviews of revisions to plans that have previously been approved for permit issuance, or perform plan reviews of changes to plans prior to such approval. 7. Attend meetings related to proposed building projects at the request of the Chief Building Official at locations other than CONSULTANT'S office. 8. Provide City with periodic plan review status reports for all projects assigned by the Chief Building Official. When requested to furnish staff, CONSULTANT shall provide resumes (including licenses and other credentials) of all candidates who shall be available to perform Building Plan Check services. The City retains the right to select or reject any or all candidates based on a review ofresumes and/or subsequent interviews. 13 Contract No. C13149365 Professional Services Rev. No\', 1,2011 EXHIBIT "A-I" PROFESSIONAL SERVICES TASK ORDER Consultant hereby agrees to perform the work detailed below iu accordauce with all the tenns and conditions of the Agreement referenced in Item I A below. All exhibits referenced in Item 8 are incorporated into the Agreement by this reference. The Consultant shall furnish the necessaty facilities, professional, technical and supp0l1ing personnel required by this Task Order as described below. CONTRACT NO. Purchase Requisition No. MASTER AGREEMENT NUMBER TASK ORDER NO. CONSULTANT ISSUE DATE IA. lB. 2. 3. PERIOD OF PERFORMANCE: START: COMPLETION: 4 TOTAL TASK ORDER PRICE: $ BALANCE REMAINING IN MASC:T~E"'R~AccG"C:R""E""EC:CM"'E:-N"'T:-:$~~~~~~~~~~~~~ 5. BUDGET CODE: __________ _ COST CENTER COST ELEMENT WBS/CIP PHASE 6. 7. CITY PROJECT MANAGER'S NAME/DEPARTMENT ~~~- DESCRIPTION OF SCOPE OF SERVICES MUST INCLUDE: • WORK TO BE PERFORMED • SCHEDULE OF WORK • BASIS FOR PAYMENT & FEE SCHEDULE • DELIVERABLES • REIMBURSABLES (with "not to exceed" cost) 8. ATTACHMENTS: A: Scope of Services B: ___________________ _ I hereby authorize the performance of the work described above in this Task Order. APPROVED: CITY OF PALO ALTO BY: ____________ _ Name _____________ _ Title _____________ _ Date ______________ _ 14 I hereby acknowledge receipt and acceptance of this Task Order and warrant that I have authority to sigu on behalf of Consultant. APPROVED: COMPANY NAME: _______ _ BY: ____________ _ Name ______________ _ Title _____________ _ Date _____________ _ Professional Services Rev. No\'. 1,2011 Contract No. C13149365 EXHIBIT "B" SCHEDULE OF PERFORMANCE (Not Applicable) 16 Contract No. C13149365 Professional Services Re\', No\,. 1,2011 EXHIBIT "C" COMPENSATION The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement based on the homly rate schedule attached as Exhibit C-l. The compensation to be paid to CONSULTANT under this Agreement for all services described in Exhibit "A" ("Services") and reimbmsable expenses shall not exceed $50,000.00. CONSULTANT agrees to complete all Services, including reimbmsable expenses, within this amount. In the event CITY authorizes any Additional Services, the maximum compensation shall not exceed $50,000.00. Any work performed or expenses incmred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbmsable expenses at cost. Expenses for which CONSULTANT shall be reimbmsed are: A. Travel outside the San Francisco Bay area, including transportation and meals, will be reimbursed at actual cost subject to the City of Palo Alto's policy for reimbursement of travel and meal expenses for City of Palo Alto employees. B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges are reimbursable at actual cost. All requests for payment of expenses shall be accompanied by appropriate backup infonnation. Any expense anticipated to be more than $0.00 shall be approved in advance by the CITY's project manager. ADDITIONAL SERVICES The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULT ANT, at the CITY's project mmmger's request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effOli, and CONSULTANT's proposed maximum compensation, including reimbursable expenses, for such services based on the rates set forth in Exhibit C-l. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY's Project Manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement. 17 Contract No. C13149365 Professional Services Rev. Nov. 1,2011 EXHIBIT "C-l" HOURLY RATE SCHEDULE For complete plan review services, fee is equal to 58% of the plan review fees based on the City's fee schedule. Plan review services will include an initial first and second review with a minor third review for approval of the plans. Any additional plan review services required beyond the third review will be billed at the hourly rates listed within the Schedule of Hourly Billing Rates, included within this proposal. If major revisions are necessary to previously approved documents, CONSULTANT shall provide additional plan review services on an hourly basis using the following rates. However, CONSULTANT may work with the Building Official to achieve a mutually acceptable resolution. For structural only and other partial reviews such as foundation only, preliminmy reviews, or others, CONSULT ANT shall negotiate a mutually agreeable fixed fee based on the specific services requested, or provide services on an hourly basis using the rates listed in our Schedule of Hourly Billing Rates. Schedule of Hourly Billing Rates CLASSIFICATION HOURLY BILLING RATE Licensed Engineer Plans Examiner ........................................................................... 110 Senior Plans Examiner. ................................................................................................ 95 Permit Technician ......................................................................................................... 50 Inspector Ilr. .................................................................................................................. 80 Inspector Ir. ................................................................................................................... 70 Inspector r. .................................................................................................................... 60 EXPEDITED PLAN REVIEW SERVICES CONSULTANT shall provide expedited or fast-track plan review services. Timeframes for performance of expedited or fast-track plan review services along with a fixed fee for such projects will be negotiated on a case-by-case basis dependent on the scope and complexity of the project at hand. FIRE PLAN REVIEW SERVICES Fire plan review will be provided on an hourly basis per our Schedule of Hourly Billing Rates. THIRD PARTY PLAN REVIEW SERVICES As a third party plan review consultant, CONSULTANTS project team shall act as an extension of City staff. CONSULTANT shall work directly with the applicant to develop fees, schedule, and other informationnecessmy to successfully deliver a prompt and accurate plan review. All communications are handled directly with the applicant with plan review comments copied to City staff so that they will always be aware of the project's progress and issues. When plans are ready for pelTIlit issuance, CONSULTANT shall issue a final letter of approval with the plans and calculations bearing our review stamps for City processing and issuance of a building penni!. 18 Contract No. Cl3149365 Professional Sen'ices Rev Nov. 1,2011 EXHIBIT "D" INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SI IALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY Cmll'ANIES WITHAM nEST'S KEY RATING 0.1' A-:VJl, OR HIGHER, LICENSED OR AlJTHORIZED TO TRANSACT INSUUANCE BUSINESS IN THE STATE OF CALIFORNIA, AWARD IS CONTINGENT ON COMPliANCE WITH CITY'S INSURANCE REQUIREMENTS AS SPECIFIED BELOW' , , . , , NININUH LIMITS REQUIRED TYPE OF COVERAGE REQUIREHENT EACH YES YES YES YES YES YES OCCURRENCE AGGREGATE WORKER'S COMPENSATION STATUTORY EMPLOYER'S LIABILITY STATUTORY BODILY INJURY $1,000,000 $1,000,000 GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE $1,000,000 $1,000,000 PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL BODILY INJURY & PROPERTY DAMAGE $1,000,000 $1,000,000 LIABILITY COMBINED. BODILY INJURY $1,000,000 $1,000,000 . EACH PERSON $1,000,000 $1,000,000 . EACH OCCURRENCE $1,000,000 $1,000,000 AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON·OWNED PROPERTY DAMAGE $1,000,000 $1,000,000 BODILY INJURY AND PROPERTY $1,000,000 $1,000,000 DAMAGE, COMBINED PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUIlCONSULTANTS, IF ANY, BUT Al.SO, WITH THE EXCEPTION OF WORKERS' COMPENSATION, EMPLOYER'S LIABILITY AND PROFESSIONAL INSURANCE, NA~HNG AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY (30) DA Y ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR'S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY'S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE. Ill. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO "ADDITIONAL INSUREDS" A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF TilE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTIIER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. 19 Contract No. Ci3149365 Professional Services Rev Nov. 1,201 J B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION I. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PA YMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A TIIIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR TilE NON-PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A TEN (10) DA Y WRIlTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. NOTICES SHALL BE MAILED TO: PURCHASING AND CONTRACT ADMINISTRATION ClTY OF PALO ALTO P.O. BOX 10250 PALO ALTO, CA 94303 20 Contract No. C13149365 Professional Services Rev Nov. 1,2011 CITY OF PALO ALTO CONTRACT NO. C13149366 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND CSG CONSULTANTS FOR PROFESSIONAL SERVICES This Agreement is entered into on this day of March, 2013, ("Agreement") by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("CITY"), and CSG CONSULTANTS, a California corporation, located at 1700 South Amphlett Blvd.3rd Floor, San Mateo, California, 94402, Telephone (650)522-2500 ("CONSULTANT"). RECITALS The following recitals are a substantive portion of this Agreement. A. CITY intends to solicit On-Call Building Inspection and Building Permitting services ("Project") and desires to engage a consultant to provide On-Call services in connection with the Project ("Services"). B. CONSULTANT has represented that it has the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY in reliance on these representations desires to engage CONSULTANT to provide the Services as more fully described in Exhibit "A", attached to and made a part of this Agreement. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree: AGREEMENT SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit "A" in accordance with the tenns and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY. [g] Optional On-Call Provision (This provision only applies if checked and only applies to on-call agreements. ) Services will be authorized by the City, as needed, with a Task Order assigned and approved by the City's Project Manager. Each Task Order shall be in substantially the same fonn as Exhibit A-l. Each Task Order shall designate a City Project Manager and shall contain a specific scope of work, a specific schedule of performance and a specific compensation amount. The total price of all Task Orders issued under this Agreement shall not exceed the amount of Compensation set forth in Section 4 of this Agreement. CONSULTANT shall only be compensated for work performed under an authorized Task Order and the City may elect, but is not required, to authorize work up to the maximum compensation amount set fOlih in Section 4. Professional Services Rev. Nov. 1,2011 SECTION 2. TERM. The term of this Agreement shall be from April 1, 2013 through March 31, 2014 with an option to extend the agreement for two, one year, additional terms, unless terminated earlier pursuant to Section 19 of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit "B", attached to and made a part of this Agreement. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY's agreement to extend the tenn or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSUL TANT for performance of the Services described in Exhibit "A", including both payment for professional services and reimbursable expenses, shall not exceed Fifty Thousand Dollars ($50,000.00). In the event Additional Services are authorized, the total compensation for services and reimbursable expenses shall not exceed Fifty Thousand Dollars (50,000.00). The applicable i'ates and schedule of payment are set out in Exhibit "C-l", entitled "HOURLY RATE SCHEDULE," which is attached to and made a part of this Agreement. Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit "C". CONSULTANT shall not receive any compensation for Additional Services perfonned without the prior written authorization of CITY. Additional Services shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described in Exhibit "A". SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the services performed and the applicable charges (including an identification of personnel who performed the services, hours worked, hourly rates, and reimbursable expenses), based upon the CONSULTANT's billing rates (set forth in Exhibit "C-1 "). If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT's payment requests shall be subject to verification by CITY. CONSULTANT shall send all invoices to the City's project manager at the address specified in Section 13 below. The City will generally process and pay invoices within thirty (30) days of receipt. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All of the Services shall be perfOlmed by CONSULTANT or under CONSULTANT's supervision. CONSULTANT represents that it possesses the professional and technical persomlel necessary to perfOlm the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subconsultants, ifpermitted, have and shall maintain during the telm of this Agreement all licenses, pelmits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. 2 Contract No. C13149366 Professional Services Rev. Nov. 1,2011 All of the services to be furnished by CONSULTANT under this agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself infonned of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services. SECTION 8. ERRORS/OMISSIONS. CONSULTANT shall cOlTect, at no cost to CITY, any and all errors, omissions, or ambiguities in the work product submitted to CITY, provided CITY gives notice to CONSULTANT. If CONSULTANT has prepared plans and specifications or other design documents to construct the Proj ect, CONSULTANT shall be obligated to correct any and all errors, omissions or ambiguities discovered prior to and during the course of construction of the Project. This obligation shall survive termination of the Agreement. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. Ifthe total estimated construction cost at any submittal exceeds ten percent (l 0%) of the CITY's stated construction budget, CONSULTANT shall make recommendations to the CITY for aligning the PROJECT design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. SECTION 10. INDEPENDENT CONTRACTOR. It is understood and agreed that in perfonning the Services under this Agreement CONSULTANT, and any person employed by or contracted with CONSULTANT to fmnish labor and! or materials under this Agreement, shall act as and be an independent contractor and not an agent or employee of the CITY. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT's obligations hereunder without the prior written consent of the city manager. Consent to one assignment will not be deemed to be consent to any subsequent assignment. Any assigmnent made without the approval of the city manager will be void. SECTION 12. SUBCONTRACTING. [gJOption A: No Subcontractor: CONSULTANT shall not subcontract any portion of the work to be performed under this Agreement without the prior written authorization of the city manager or designee. DOption B: Subcontracts Authorized: Notwithstanding Section 11 above, CITY agrees that sub consultants may be used to complete the Services. The subconsultants authorized by CITY to perform work on this Project are: 3 Contract No. C13149366 Professional Services Rev. Nov. 1,2011 CONSULTANT shall be responsible for directing the work of any sub consultants and for any compensation due to subconsultants. CITY assumes no responsibility whatsoever concerning compensation. CONSULTANT shall be fully responsible to CITY for all acts and omissions of a sub consultant. CONSULTANT shall change or add sub consultants only with the prior approval of the city manager or his designee. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Doug Rider as the project director to have supervisory responsibility for the performance, progress, and execution of the Services and to represent CONSULTANT during the day-to-day work on the Project. If circumstances cause the substitution of the project director, project coordinator, or any other key personnel for any reason, the appointment of a substitute project director and the assignment of any key new or replacement personnel will be subj ect to the prior written approval of the CITY's proj ect manager. CONSULTANT, at CITY's request, shall promptly remove personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property. The City's project manager is Peter Pirnejad, Development Services Department Palo Alto, CA 94303, Telephone (650)329-2349, Email peter.pirnejad@cityofpaloalto.org. The project manager will be CONSULTANT's point of contact with respect to performance, progress and execution of the Services. The CITY may designate an alternate project manager from time to time. 4 Contract No. C!3149366 Professional Services Rev. Nov. 1,20ll SECTION 14. OWNERSIDP OF MATERIALS. Upon delivery, all work product, including without limitation, all writings, drawings, plans, reports, specifications, calculations, documents, other materials and copyright interests developed under this Agreement shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work pursuant to this Agreement shall be vested in CITY, and CONSULTANT waives and relinquishes all claims to copyright or other intellectual property rights in favor ofthe CITY. Neither CONSULTANT nor its contractors, if any, shall make any of such materials available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the scope of work. SECTION 15. AUDITS. CONSULTANT will permit CITY to audit, at any reasonable time during the term of this Agreement and for three (3) years thereafter, CONSULTANT's records pertaining to matters covered by this Agreement. CONSULTANT further agrees to maintain and retain such records for at least three (3) years after the expiration or earlier termination of this Agreement. SECTION 16. INDEMNITY. [3J[Option A applies to the following design professionals pursuant to Civil Code Section 2782.8: architects; landscape architects; registered professional engineers and licensed professional land surveyors.] 16.1. To the fullest extent permitted by law, CONSULTANT shall protect, indemnify, defend and hold hmm1ess CITY, its Council members, officers, employees and agents (each an "Indemnified Party") from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorneys fees, experts fees, court costs and disbursements ("Claims") that arise out of, pertain to, or relate to the negligence, recldessness, or willful misconduct of the CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. 16.2. Notwithstmlding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from Claims arising from the active negligence, sole negligence or willful misconduct of an Indelllilified Party. 16.3. The acceptance of CONSULTANT's services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17 . WAIVERS. The waiver by either party of any breach or violation of any covenant, telm, condition or provision of this Agreement, or of the provisions of any ordinance or law, will not be deemed to be a waiver of any other term, covenant, condition, provisions, ordinance or law, or of any subsequent breach or violation of the San1e or of any other term, covenant, condition, provision, ordinance or law. SECTION 18. INSURANCE. 5 Contract No. C13149366 Professional Services Rev Nov. 1,2011 18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term ofthis Agreement, the insurance coverage described in Exhibit "D". CONSUL T ANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through calTiers with AM Best's Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution ofthis Agreement. The certificates will be subject to the approval of CITY's Risk Manager and will contain an endorsement stating that the insurance is primaIY coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days' prior written notice ofthe cancellation or modification. Ifthe insurer cancels or modifies the insurance and provides less than thirty (30) days' notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT's receipt of such notice. CONSULTANT shall be responsible for ensuring that CUlTent certificates evidencing the insurance are provided to CITY's Purchasing Manager during the entire telID of this Agreement. 18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT's liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of tlle Services performed under this Agreement, including such damage, injrny, or loss arising after the Agreement is terminated or the term has expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may suspend the perfonnance of the Services, in whole or in part, or tenninate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. Upon receipt of such notice, CONSULTANT will immediately discontinue its perfonnance of the Services. 19.2. CONSULTANT may tenninate this Agreement or suspend its performance of the Services by giving thirty (30) days prior written notice thereof to CITY, but only in the event of a substantial failure of performance by CITY. 19.3. Upon such suspension or tennination, CONSULTANT shall deliver to the City Manager immediately any and all copies of studies, sketches, drawings, computations, and other data, whether or not completed, prepaI'ed by CONSULTANT or its contractors, if any, or given to CONSULTANT or its contractors, ifany, in connection with this Agreement. Such materials will become the property of CITY. 6 Contract No. C13149366 Professional Services Rev Nov. 1,2011 19.4. Upon such suspension ottermination by CITY, CONSULTANT will be paid for the S enTices rendered or materials delivered to CITY in accordance with the scope of services on or before the effective date (i.e., 10 days after giving notice) of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT's services which are of direct and immediate benefit to CITY as such determination may be made by the City Manager acting in the reasonable exercise of his/her discretion. The following Sections will survive any expiration ortennination of this Agreement: 14, 15, 16, 19.4,20, and 25. 19.5 . No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement. SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY: Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Purchasing Manager To CONSULTANT: Attention of the project director at the address of CONSULTANT recited above SECTION 21. CONFLICT OF INTEREST. 21.1. In accepting this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subconsultants, contractors or persons having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California. 21.3. If the Project Manager detennines that CONSULTANT is a "Consultant" as that term is defined by the Regulations ofthe FaIr Political Practices Commission, CONSULTANT shall be required and agrees to file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Refonn Act. 7 Contract No. C13149366 Professional Services Rev Nov. l, 2011 SECTION 22. NONDISCRIMINATION. As set f01ih in Palo Alto Municipal Code section 2.30.510, CONSULTANT certifies that in the perfonnance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the City's Environmentally Prefened Purchasing policies which are available at the City's Purchasing Department, incorporated by reference and may be amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of the City's Zero Waste Program. Zero Waste best practices include first minimizing and reducing waste; second, reusing waste and third, recycling or composting waste. In particular, Consultant shall comply with the following zero waste requirements: • All printed materials provided by Consultant to City generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, rep01is, and public education materials, shall be double-sided and printed on a minimum of 3 0% or greater post-consumer content paper, unless otherwise approved by the City's Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of30% or greater post-consumer material and printed with vegetable based inIcs. • Goods purchased by Consultant on behalf of the City shall be purchased in accordance with the City's Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Office. • Reusable/returnable pallets shall be taken back by the Consultant, at no additional cost to the City, for reuse or recycling. Consultant shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. NON-APPROPRIATION 24.1. This Agreement is subject to the fiscal provisions ofthe Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will temunate without any penalty ( a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This section shall take precedence in the event of a conflict with any other covenant, tenn, condition, or provision of this Agreement. SECTION 25. MISCELLANEOUS PROVISIONS. 25.1. This Agreement will be govemed by the laws of the State of California. 25.2. In the event that an action is brought, the parties agree that trial of such action 8 Contract No. C13149366 Professional Services Rev Nov. 1,2011 will be vested exclusively in the state courts of California in the County of Santa Clara, State of Califomia. 25.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attomeys' 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 attomeys' fees paid to third parties. 25.4. This document represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This document may be amended only by a written instrument, which is signed by the parties. 25.5. The covenants, tenns, conditions and provisions ofthis Agreement will apply to, and will bind, the heirs, successors, executors, administrators, assignees, and consultants of the parties. 25.6. If a court of competent jurisdiction finds or rules that any provision of this Agreement or any amendment thereto is void or unenforceable, the unaffected provisions of this Agreement and any amendments thereto will remain in full force and effect. 25.7. All exhibits refelTed to in this Agreement and any addenda, appendices, attachments, and schedules to this Agreement which, from time to time, may be refelTed to in any duly executed amendment hereto are by such reference incorporated in this Agreement and will be deemed to be a part of this Agreement. 25.8 If, pursuant to this contract with CONSULTANT, City shares with CONSULTANT personal information as defmed in California Civil Code section 1798.81.5( d) about a California resident ("Personal Infonnation"), CONSULTANT shall maintain reasonable and appropriate security procedures to protect that Personal Information, and shall inform City immediately upon leaming that there has been a breach in the security of the system or in the security of the Personal Information. CONSULTANT shall not use Personal Information for direct marketing purposes without City's express written consent. 25.9 All unchecked boxes do not apply to this agreement. 25.10 The individuals executing this Agreement represent and walTant that they have the legal capacity and authority to do so on behalf of their respective legal entities. 25.11 This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement 9 Contract No. C13149366 Professional Services Rev Nov. 1,2011 IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement on the date first above written. CITY OF PALO ALTO CSG CONSULTANTS, INC. City Manager By: ~=---~~~~--------- APPROVED AS TO FORM: Senior Asst. City Attomey Attachments: EXHIBIT "A": EXHIBIT "A -1" EXHIBIT "B": EXHIBIT "C": EXHIBIT "C-1": EXHIBIT "D": SCOPE OF WORK ON CALL TASK ORDER SCHEDULE OF PERFORMANCE COMPENSATION SCHEDULE OF RATES INSURANCE REQUIREMENTS 10 Contract No. C13149366 Professional Services RevNov.l,2011 EXHIBIT A SCOPE OF SERVICES CONSULTANT shall provide professional services consisting ofPernlit Processing and Inspection services on an as-needed (on-call) basis. Permit Processing Services CONSULTANT shall be responsible for providing permit -teclmician, clerical and/or administrative services as requested by the City on an as needed basis. CONSULTANT shall provide staff, on an as need basis that shall work on-or off-site at the City's Development Center under the supervision of the Development Services Director or designee which may include the Chief Building Official, Inspection Services Supervisor and/or Development Center Manager with the knowledge, skills and abilities to perfOlm the following functions: Enter permit and related data into the Accela permit tracking system; research, compile and prepare various limited repOlis and presentation graphics; assist the general public at the front counter or by phone/e-mail regarding building, planning, engineering and fire permit requirements, application and permit fees, application filing procedures and processing, and permit status; accept permit and related applications and collect fees; screen plans and application materials for completeness and for conformance with City ordinances, standards, policies and guidelines; review application materials for compliance with conditions of project approval; route plans to other city departments/divisions for review; approve and issue minor permits; research and respond to public inquiries; build and maintain positive working relationships with co-workers, City staff and the public using principles of good customer service; and perform related duties as assigned. When requested to furnish staff, CONSULTANT shall provide resumes (including licenses and other credentials) of all candidates who shall be available to perform Permit Processing services. The City retains the right to select or reject any or all candidates based on a review of resumes and/or subsequent interviews. Building Inspection Services CONSULTANT shall be responsible for providing building inspection services on an as needed basis, as requested by the City, to meet workload demands and service delivelY goals. The City shall use the services of the CONSULTANT'S film to provide inspection staff to supplement the City's regular staff. When requested to provide building inspection services, CONSULTANT shall perform the following services: 1. Perfonn all requested inspections and re-inspections for compliance with City and State codes and applicable regulations. 11 Contract No. C13149366 Professional Services Rev Nov. 1,2011 2. Coordinate all inspection and re-inspection requests. 3. Confer with the Chief Building Official, building plan check supervisor, and/or Inspection Services Supervisor on all discretionary decisions or requests for alternate materials or types of construction. 4. Coordinate with the Chief Building Official and/or Inspection Services Supervisor on all Certificates of Occupancy to ensure that all applicable City departments and regulatOlY agencies have approved the project. 5. Enter all inspection records into the Accela permit tracking system. Maintain all inspection records for all assigned projects, to be turned over to the City within five working days of when requested by the City. Records include all cOlTection notices and all documentation related to design changes. 6. Coordinate inspection activities with any and all third-party inspectors and special inspection agents retained by owners and/or their contractors. 7. Have CASp certified staff available to the City on an as-needed basis. 8. Participate in and attend weekly Inspection Division staff meetings and training events sponsored by the City. When requested to furnish staff, CONSULTANT shall provide resumes (including licenses and other credentials) of all candidates who shall be available to perfonn Building Inspection services. The City retains the right to select or reject any or all candidates based on a review of resumes and/or subsequent interviews. 12 Contract No. C13149366 Professional Services Rev Nov. 1,2011 EXHIBIT "A-l" PROFESSIONAL SERVICES TASK ORDER Consultant hereby agrees to perfOlID the work detailed below in accordance with all the terms and conditions of the Agreement referenced in Item lA below. All exhibits referenced in Item 8 are incorporated into the Agreement by this reference. The Consultant shall furnish the necessmy facilities, professional, technical and suppOliing persomleI required by this Task Order as described below. CONTRACT NO. Purchase Requisition No. MASTER AGREEMENT NUMBER TASK ORDER NO. CONSULTANT ISSUE DATE lAo lB. 2. 3. 4 PERIOD OF PERFORMANCE: START: COMPLETION: TOTAL TASK ORDER PRICE: $, ______ _ BALANCE REMAINING IN MASTER AGREEMENT $ ____________ _ 5. BUDGET CODE: ~~~ __ ~ COST CENTER COST ELEMENT WBS/CIP~~~.....;PHASE 6. 7. CITYPROJECTMANAGER'SNAMEIDEPARTMENT ______________ _ DESCRIPTION OF SCOPE OF SERVICES MUST INCLUDE: WORK TO BE PERFORMED SCHEDULE OF WORK BASIS FOR PAYMENT & FEE SCHEDULE • DELIVERABLES • REIMBURSABLES (with "not to exceed" cost) 8. ATTACHMENTS: A: Scope of Services B: ~~~~~~~~~~~~~_ I hereby authorize the performance of the work described above in this Task Order. APPROVED: CITY OF PALO ALTO BY: _____________ _ Nmne _____________ _ Title _____________ _ Dme ______________ _ 13 I hereby acknowledge receipt and acceptance of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: COMPANY NAME: _______ _ BY: ______________ __ Nallle _____________________ _ Title _________________________ _ Date ________________________ _ Professional Services Rev Nov. 1,2011 Contract No. C13149366 EXHIBIT "B" SCHEDULE OF PERFORMANCE (Not applicable) 14 Contract No. Ci3149366 Professional Services Rev Nov. 1,2011 EXIDBIT "C" COMPENSATION The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement based on the hourly rate schedule attached as Exhibit C-l. The compensation to be paid to CONSULTANT under this Agreement for all services described in Exhibit "A" ("Services") and reimbursable expenses shall not exceed $50,000.00. CONSULTANT agrees to complete all Services, including reimbursable expenses, within this amount. In the event CITY authorizes any Additional Services, the maximum compensation shall not exceed $50,000.00. Any work performed or expenses incuned for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are: A. Travel outside the San Francisco Bay area, including transportation and meals, will be reimbursed at actual cost subject to the City of Palo Alto's policy for reimbursement of travel and meal expenses for City of Palo Alto employees. B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges are reimbursable at actual cost. All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense anticipated to be more than $0.00 shall be approved in advance by the CITY's project manager. ADDITIONAL SERVICES The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY's project manager's request, shall submit a detailed written proposal including.a description of the scope of services, schedule, level of effort, and CONSULTANT's proposed maximum compensation, including reimbursable expenses, for such services based on the rates set forth in Exhibit C-l. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY's Project Manager and CONSULTANT prior to commencement of the services. Payment for additional services is subjectto all requirements and restrictions in this Agreement. 15 Contract No. C13149366 Professional Services Rev Nov. 1,2011 Plan Review Services EXHIBIT "C-l" HOURLY RATE SCHEDULE CSG proposes the use of a percentage option based on plan review fees coJ/ected by the City, or compensation utilizing hourly rates. Description Percentage *Fee includes initial review and 2 reviews, if necessary; additional reviews will incurhour/y fees Building Plan Review Services ........ , ..................•........ 65% ofthe City's Collected Plan Review Structural Plan Review ............... , ........................... 50% of the City's Collected Plan Review Description Hourlv Rates Plan Review Structural Engineer .................... , ...... , ............................... $125 per hour Plan Review Engineer ..... , ......... ' ................................................... , ,. $110 per hour C~rtified Plan Examiner ................................... , ........... , .... , ................ $90 per hour Accelerated I Expedited Plan Review .................... : ' .. , . .. . .. .. .. ..... 1.S times hourly rates listed (ASp Services , , CASp Consultation .........•.......•................................. , .................. ,. $125 per hour CASp Inspection, .. , , .... , ...... , .... , ... , ... , , .. , ,. , .. " ,', ..... , ... ' .. , . , , .... , ....... , . " $125 per hour Inspection Services Description Hourly Rates Building Inspector .. ' ....•.. , .. , ..... , , , .... , ... ; ........... , ........... ' . , .. , .•.......... , ., $85 per hour Permit Technician Services Description Hourly Rates Permit Technician ............... , .... ,. , .. , .... , ................ , .... , ..................... $60 per hour All hourly rates include overhead costs including, but not limited to, salaries, benefits, Workers Compensation Insurance, office expenses, etc, ShOUld the scope of work change or circumstances develop which necessitate special handling, we will notify the City prior to proceeding. Annual adjustments mav be made by mutual agreement based upon current CPl. Pick-up and Delivery of plans is at no additional cost to the City 16 Contract No. C 13149366 Professional Services Rev Nov. 1,2011 EXHIBIT "D" INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST'S KEY RATING OFA-:VII,ORIDGHER,LICENSED OR AUTHORIZED TO TRANSA CTINSURANCEBUSINESSIN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY'S INSURANCE REQUIREMENTS AS SPECIFIED BELOW' , , MINIMUM LIMITS REQUIRED TYPE OF COVERAGE REQUIREMENT EACH YES YES YES YES YES YES OCCURRENCE AGGREGATE WORKER'S COMPENSATION STATUTORY EMPLOYER'S LIABILITY STATUTORY BODILY INJURY $1,000,000 $1,000,000 GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE $1,000,000 $1,000,000 PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL BODILY INJURY & PROPERTY DAMAGE $1,000,000 $1,000,000 LIABILITY COMBINED. BODILY INJURY $1,000,000 $1,000,000 -EACH PERSON $1,000,000 $1,000,000 -EACH OCCURRENCE $1,000,000 $1,000,000 AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED PROPERTY DAMAGE $1,000,000 $1,000,000 BODILY INJURY AND PROPERTY $1,000,000 $1,000,000 DAMAGE, COMBINED PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUB CONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS' COMPENSATION, EMPLOYER'S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY (30) DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR'S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY'S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO "ADDITIONAL INSUREDS" A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRlED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. 17 Contract No. C13149366 Professional Services Rev Nov. 1,2011 B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1. lFTHEPOLICYISCANCELEDBEFOREITSEXPIRATIONDATEFORANYREASONOTHER THAN THE NON-PAYMENT OFPREMillM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYME NT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A TEN (1 0) DAY WRITTEN NOTICE BEI:ORE THE EFFECTIVE DATE OF CANCELLATION. NOTICES SHALL BE MAILED TO: PURCHASING AND CONTRACT ADMINISTRATION CITY OF PALO ALTO P.O. BOX 10250 PALO ALTO, CA 94303 18 Contract No. C13149366 Professional Services Rev Nov. 1,2011 CITY OF PALO ALTO CONTRACT NO. C13149367 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND WEST COAST CODE CONSULTANTS FOR PROFESSIONAL SERVICES This Agreement is entered into on this day of March, 2013, ("Agreement") by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("CITY"), and WEST COAST CODE CONSULTANTS, a California corporation, located at 2400 Camino Ramon, Suite 240, San Ramon, California, 94583, Telephone (925)275-1700 ("CONSULTANT"). RECITALS The following recitals are a substantive portion of this Agreement. A. CITY intends to solicit On-Call Building Plan Check Services ("Project") and desires to engage a consultant to provide On-Call services in connection with the Project ("Services"). B. CONSULTANT has represented that it has the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY in reliance on these representations desires to engage CONSULTANT to provide the Services as more fully described in Exhibit "A", attached to and made a part of this Agreement. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree: AGREEMENT SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit "A" in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY. ~ Optional On-Call Provision (This provision only applies if checked and only applies to on-call agreements. ) Services will be authorized by the City, as needed, with a Task Order assigned and approved by the City's Project Manager. Each Task Order shall be in substantially the same form as Exhibit A-I. Each Task Order shall designate a City Project Manager and shall contain a specific scope of work, a specific schedule of performance and a specific compensation amount. The total price of all Task Orders issued under this Agreement shall not exceed the amount of Compensation set forth in Section 4 of this Agreement. CONSULTANT shall only be compensated for work performed under an authorized Task Order and the City may elect, but is not required, to authorize work up to the maximum compensation amount set forth in Section 4. Professional Services Rev. Nov. 1,2011 SECTION 2. TERM. The term of this Agreement shall be from April 1, 2013 through March 31, 2014 with an option to extend the agreement for two, one year, additional terms, unless terminated earlier pursuant to Section 19 of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is ofthe essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit "B", attached to and made a part of this Agreement. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY's agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit "A", including both payment for professional services and reimbursable expenses, shall not exceed Three Hundred Eighty Five Thousand Dollars ($385,000.00). In the event Additional Services are authorized, the total compensation for services and reimbursable expenses shall not exceed Three Hundred Eighty Five Thousand Dollars ($385,000.00). The applicable rates and schedule of payment are set out in Exhibit "C-l", entitled "HOURLY RATE SCHEDULE," which is attached to and made a part of this Agreement. Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit "C". CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described in Exhibit "A". SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the services performed and the applicable charges (including an identification of personnel who performed the services, hours worked, hourly rates, and reimbursable expenses), based upon the CONSULTANT's billing rates (set forth in Exhibit "C-l "). If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT's payment requests shall be subject to verification by CITY. CONSULTANT shall send all invoices to the City's project manager at the address specified in Section 13 below. The City will generally process and pay invoices within thirty (30) days of receipt. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All of the Services shall be performed by CONSULTANT or under CONSULTANT's supervision. CONSULTANT represents that it possesses the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subconsultants, if permitted, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. 2 Contract No. C13149367 Professional Services Rev. Nov. 1,2011 All of the services to be furnished by CONSULTANT under this agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement. CONSULT ANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services. SECTION 8. ERRORS/OMISSIONS. CONSULTANT shall correct, at no cost to CITY, any and all errors, omissions, or ambiguities in the work product submitted to CITY, provided CITY gives notice to CONSULTANT. If CONSULT ANT has prepared plans and specifications or other design documents to construct the Project, CONSULTANT shall be obligated to correct any and all errors, omissions or ambiguities discovered prior to and during the course of construction of the Project. This obligation shall survive termination of the Agreement. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds ten percent (10%) of the CITY's stated construction budget, CONSULTANT shall make recommendations to the CITY for aligning the PROJECT design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. SECTION 10. INDEPENDENT CONTRACTOR. It is understood and agreed that in performing the Services under this Agreement CONSULTANT, and any person employed by or contracted with CONSULTANT to furnish labor and/or materials under this Agreement, shall act as and be an independent contractor and not an agent or employee of the CITY. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULT ANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT's obligations hereunder without the prior written consent of the city manager. Consent to one assignment will not be deemed to be consent to any subsequent assignment. Any assignment made without the approval of the city manager will be void. SECTION 12. SUBCONTRACTING. [8JOption A: No Subcontractor: CONSULTANT shall not subcontract any portion of the work to be performed under this Agreement without the prior written authorization of the city manager or designee. DOption B: Subcontracts Authorized: Notwithstanding Section 11 above, CITY agrees that subconsultants may be used to complete the Services. The subconsultants authorized by CITY to 3 Contract No. C13149367 Professional Services Rev. Nov. 1,2011 '.~.~-' ... ------------------- perform work on this Project are: CONSULT ANT shall be responsible for directing the work of any subconsultants and for any compensation due to subconsultants. CITY assumes no responsibility whatsoever concerning compensation. CONSULTANT shall be fully responsible to CITY for all acts and omissions of a subconsultant. CONSULTANT shall change or add subconsultants only with the prior approval of the city manager or his designee. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Giyan Senarate as the project director to have supervisory responsibility for the performance, progress, and execution ofthe Services and to represent CONSULTANT during the day-to-day work on the Project. If circumstances cause the substitution of the project director, project coordinator, or any other key personnel for any reason, the appointment of a substitute project director and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY's project manager. CONSULTANT, at CITY's request, shall promptly remove personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property. The City's project manager is Peter Pirnejad, Development Services Department Palo Alto, CA 94303, Telephone (650)329-2349, Email peter.pirnejad@cityofpaloalto.org. The project manager will be CONSULTANT's point of contact with respect to performance, progress and execution of the Services. The CITY may designate an alternate project manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. Upon delivery, all work product, including without limitation, all writings, drawings, plans, reports, specifications, calculations, documents, other materials and copyright interests developed under this Agreement shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work pursuant to this Agreement shall be vested in CITY, and CONSULTANT waives and relinquishes all claims to copyright or other intellectual property rights in favor of the CITY. Neither CONSULTANT nor its contractors, if any, shall make any of such materials available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the scope of work. SECTION 15. AUDITS. CONSULTANT will permit CITY to audit, at any reasonable time during the term of this Agreement and for three (3) years thereafter, CONSULTANT's records pertaining to matters covered by this Agreement. CONSULTANT further agrees to maintain and retain such records for at least three (3) years after the expiration or earlier termination of this Agreement. SECTION 16. INDEMNITY. [gI[Option A applies to the following design professionals pursuant to Civil Code Section 2782.8: architects; landscape architects; registered professional engineers and licensed professional land surveyors.) 16.1. To the fullest extent permitted by law, CONSULTANT shall 4 Contract No. C13149367 ....... -~ .. -.-.. ----~-~ .... -~-------- Professional Services Rev. Nov. 1,2011 protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an "Indemnified Party") from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorneys fees, experts fees, court costs and disbursements ("Claims") that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from Claims arising from the active negligence, sole negligence or willful misconduct of an Indemnified Party. 16.3. The acceptance of CONSULTANT's services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. The waiver by either party of any breach or violation of any covenant, term, condition or provision of this Agreement, or of the provisions of any ordinance or law, will not be deemed to be a waiver of any other term, covenant, condition, provisions, ordinance or law, or of any subsequent breach or violation of the same or of any other term, covenant, condition, provision, ordinance or law. SECTION 18. INSURANCE. 18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit liD". CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best's Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY's Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days' prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days' notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT's receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the 5 Contract No. C13149367 Professional Services Rev. Nov. 1,2011 ~~~.--~~~~~~------------ insurance are provided to CITY's Purchasing Manager during the entire term of this Agreement. 18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT's liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. Upon receipt of such notice, CONSULTANT will immediately discontinue its performance of the Services. 19 .2. CONSULTANT may terminate this Agreement or suspend its performance of the Services by giving thirty (30) days prior written notice thereof to CITY, but only in the event of a substantial failure of performance by CITY. 19.3. Upon such suspension or termination, CONSULTANT shall deliver to the City Manager immediately any and all copies of studies, sketches, drawings, computations, and other data, whether or not completed, prepared by CONSULTANT or its contractors, if any, or given to CONSULTANT or its contractors, if any, in connection with this Agreement. Such materials will become the property of CITY. 19.4. Upon such suspension or termination by CITY, CONSULTANT will be paid for the Services rendered or materials delivered to CITY in accordance with the scope of services on or before the effective date (i.e., 10 days after giving notice) of suspension or termination; provided, however, ifthis Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT's services which are of direct and immediate benefit to CITY as such determination may be made by the City Manager acting in the reasonable exercise ofhislher discretion. The following Sections will survive any expiration or termination of this Agreement: 14,15,16,19.4,20, and 25. 19.5. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement. SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY: Office of the City Clerk City of Palo Alto 6 Contract No. C13149367 Professional Services Rev. Nov. 1,2011 -------------------~ -------------------- Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Purchasing Manager To CONSULTANT: Attention ofthe project director at the address of CONSULTANT recited above SECTION 21. CONFLICT OF INTEREST. 21.1. In accepting this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subconsultants, contractors or persons having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California. 21.3. Ifthe Project Manager determines that CONSULTANT is a "Consultant" as that term is defined by the Regulations of the Fair Political Practices Commission, CONSULTANT shall be required and agrees to file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act. SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. 7 Contract No. C 13149367 Professional Services Rev. Nov. 1,2011 SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REOUIREMENTS. CONSULTANT shall comply with the City's Environmentally Preferred Purchasing policies which are available at the City's Purchasing Department, incorporated by reference and may be amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of the City's Zero Waste Program. Zero Waste best practices include first minimizing and reducing waste; second, reusing waste and third, recycling or composting waste. In particular, Consultant shall comply with the following zero waste requirements: • All printed materials provided by Consultant to City generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of30% or greater post-consumer content paper, unless otherwise approved by the City's Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of30% or greater post-consumer material and printed with vegetable based inks. • Goods purchased by Consultant on behalf of the City shall be purchased in accordance with the City's Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Office. • Reusable/returnable pallets shall be taken back by the Consultant, at no additional cost to the City, for reuse or recycling. Consultant shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. NON-APPROPRIATION 24.1. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 25. MISCELLANEOUS PROVISIONS. 25.1. This Agreement will be governed by the laws of the State of California. 25.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California. 25.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys' fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys' fees paid to third parties. 8 Contract No. CJ3149367 Professional Services Rev. Nov. 1,2011 25.4. This document represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This document may be amended only by a written instrument, which is signed by the parties. 25.5. The covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators, assignees, and consultants of the parties. 25.6. If a court of competent jurisdiction finds or rules that any provision of this Agreement or any amendment thereto is void or unenforceable, the unaffected provisions of this Agreement and any amendments thereto will remain in full force and effect. 25.7. All exhibits referred to in this Agreement and any addenda, appendices, attachments, and schedules to this Agreement which, from time to time, may be referred to in any duly executed amendment hereto are by such reference incorporated in this Agreement and will be deemed to be a part of this Agreement. 25.8 If, pursuant to this contract with CONSULTANT, City shares with CONSULTANT personal information as defined in California Civil Code section 1798.81.5( d) about a California resident ("Personal Information"), CONSULT ANT shall maintain reasonable and appropriate security procedures to protect that Personal Information, and shall inform City immediately upon learning that there has been a breach in the security of the system or in the security of the Personal Information. CONSULTANT shall not use Personal Information for direct marketing purposes without City's express written consent. 25.9 All unchecked boxes do not apply to this agreement. 25.10 The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. 25.11 This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement 9 Contract No. C13149367 Professional Services Rev. Nov. 1,2011 IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement on the date first above written. CITY OF PALO ALTO City Manager -+_------'----l~-=-..::>~N~ ~1f:f'I ~ APPROVED AS TO FORM: Title:_+---'-__ -'-+....:......:...=-£-_~ Senior Asst. City Attorney Attachments: EXHIBIT "A": EXHIBIT "A-I" EXHIBIT "B"; EXHIBIT "C": EXHIBIT "C-l"; EXHIBIT "D"; SCOPE OF WORK ON CALL TASK ORDER SCHEDULE OF PERFORMANCE COMPENSATION SCHEDULE OF RATES INSURANCE REQUIREMENTS 10 Contract No. C13149367 Professional Serviees Rev. Nov. 1,2011 EXHIBIT A SCOPE OF SERVICES CONSULTANT shall provide professional services consisting of Building Plan Check services on an as-needed (on-call) basis. Building Plan Check Services CONSULTANT shall be responsible for providing building plan check services as requested by the City on an as needed basis. Plan check services shall be provided either by supplying staff to work on site at the City's Development Center under the direction of the Chief Building Official or by performing plan reviews off site at CONSULT ANT'S office when plans are transmitted to CONSULT ANT by the City. The manner in which plan check services will be performed shall be determined by the City's Chief Building Official. When requested to provide plan check services, CONSULTANT shall be expected to perform the following services: 1. Preliminary plan review consultations in CONSULTANT'S office or by telephone/e-mail. 2. Initial plan review of project plans and other related documents submitted in conjunction with applications for Building Permits to determine compliance with the adopted uniform codes, applicable laws, regulations and local ordinances. The services shall include, but not be limited to, review of the following, as applicable to each project: Architectural, Structural, Civil, Electrical, Mechanical and Plumbing plans, structural calculations, accessibility compliance, fire and life safety components, geotechnical reports, Green Building and Energy Code compliance documentation and deferred submittal items. 3. Provide the applicant's designee and the City, a typed list of items needing clarification or change to achieve conformance with the above regulations. 4. Maintain sufficient communication with the applicant's designee(s), either by telephone/e- mail, mail or meeting in CONSULTANT'S office and perform all necessary plan rechecks to achieve conformance to the regulations. 5. Provide recommendations and acts as liaison to the Chief Building Official, or his designee, either by maille-mail, telephone or in CONSULT ANT'S office, to ensure compliance with Palo Alto's Municipal Code requirements. 6. Perform plan reviews of revisions to plans that have previously been approved for permit issuance, or perform plan reviews of changes to plans prior to such approvaL 12 Contract No. C13149367 Professional Services Rev. Nov. 1,2011 7. Attend meetings related to proposed building projects at the request of the Chief Building Official at locations other than CONSULTANT'S office. 8. Provide City with periodic plan review status reports for all projects assigned by the Chief Building Official. When requested to furnish staff, CONSULTANT shall provide resumes (including licenses and other credentials) of all candidates who shall be available to perform Building Plan Check services. The City retains the right to select or reject any or all candidates based on a review of resumes and/or subsequent interviews. 13 Contract No. C 13149367 Professional Services Rev. Nov. 1,2011 EXHIBIT "A-I" PROFESSIONAL SERVICES TASK ORDER Consultant hereby agrees to perfonn the work detailed below in accordance with all the tenns and conditions of the Agreement referenced in Item lA below. All exhibits referenced in Item 8 are incorporated into the Agreement by this reference. The Consultant shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below. CONTRACT NO. Purcha3e Requisition No. ISSUE DATE lAo 18. 2. 3. 4 5. 6. 7. 8. MASTER AGREEMENT NUMBER TASK ORDER NO. CONSULTANT PERIOD OF PERFORMANCE: START: COMPLETION: TOTAL TASK ORDER PRICE: $ ______ _ BALANCE REMAINING IN MASTER AGREEMENT $ ____________ _ BUDGET CODE: _____ _ COST CENTER COST ELEMENT WBS/CIP ____ ,PHASE CITY PROJECT MANAGER'S NAMEIDEPARTMENT ______________ _ DESCRIPTION OF SCOPE OF SERVICES MUST INCLUDE: • WORK TO BE PERFORMED • SCHEDULE OF WORK • BASIS FOR PAYMENT & FEE SCHEDULE • DELIVERABLES • REIMBURSABLES (with "not to exceed" cost) ATTACHMENTS: A: Scope of Services B: _____________ _ I hereby authorize the performance of I hereby acknowledge receipt and acceptance of this Task Order and warrant that I have authority to sign on behalf of Consultant. the work described above in this Task Order. APPROVED: CITY OF PALO ALTO Name ________________________ __ Date ________________________ _ 14 APPROVED: COMPANY NAME: _______ _ Name ________________ ~ _________ _ Date __________________________ __ Professional Services Rev. Nov. 1,2011 Contract No. CI3149367 EXHIBIT "B" SCHEDULE OF PERFORMANCE (Not Applicable) 16 Contract No. Cl3149367 Professional Services Rev. Nov. 1,2011 EXHIBIT "C" COMPENSATION The CITY agrees to compensate the CONSULT ANT for professional services performed in accordance with the terms and conditions of this Agreement based on the hourly rate schedule attached as Exhibit C-l. The compensation to be paid to CONSULTANT under this Agreement for all services described in Exhibit "A" ("Services") and reimbursable expenses shall not exceed $385,000.00. CONSULTANT agrees to complete all Services, including reimbursable expenses, within this amount. In the event CITY authorizes any Additional Services, the maximum compensation shall not exceed $385,000.00. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are: A. Travel outside the San Francisco Bay area, including transportation and meals, will be reimbursed at actual cost subject to the City of Palo Alto's policy for reimbursement of travel and meal expenses for City of Palo Alto employees. B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges are reimbursable at actual cost. All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense anticipated to be more than $0.00 shall be approved in advance by the CITY's project manager. ADDITIONAL SERVICES The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY's project manager's request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT's proposed maximum compensation, including reimbursable expenses, for such services based on the rates set forth in Exhibit C-l. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY's Project Manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement. 17 Contract No. C13149367 Professional Services Rev. Nov. 1,2011 Plan Review EXIDBIT "C-l" HOURLY RATE SCHEDULE For complete plan review services, a fee equal to 75% of the plan check fees received by the City of Palo Alto. Plan review services will include an initial first and second review with a minor third review for approval of the plans. Any additional plan review time required beyond the third review will be billed hourly, with prior approval by the City, per the Schedule of Hourly Billing Rates (see below). Pick-up and delivery fees are not charged to the City but processed through CONSULTANT's established account. Preliminary plan checks, review of revisions after a project has been approved, and review of deferred submittals will be done on an hourly basis with a mutually acceptable not-to-exceed amount. For structural only reviews a fee equal to 45% of the plan check fees received by the City and for non-structural only reviews a fee equal to 35% of the plan check fees received by the City. Projects where the same building or residence is being used more than once on the site will be charged 15% of CONSULTANT's plan review fee for the original bUilding. For expedited or fast-track projects requested by the City, a fee of 150% of the above noted fees. Civil Review Review of Civil Plans will be charged at an hourly rate per the Schedule of Hourly Billing Rates (see below). Typically civil review services will include an initial first and second review with a minor third review for approval of the plans. In House Service (Plan Review, Permit Processing, Inspections) In house services for plan review, permit processing, and building inspection will be charged at an hourly rate per the Schedule of Hourly Billing Rates (see below). Reimbursable expenses may be charged as indicated below under Additional Cost. Mileage will be charged for building inspection only when using non-city vehicles within the City limits. There will be no additional mileage charged for traveling to the City to perform the job. Schedule of Hourly Billing Rates Classification Principal-in-Charge Senior Structural Engineer Senior Civil Engineer Plan Review Engineerl Architect Senior Inspector Building Inspector Permit Technician Hourly Billing Rate $140 $125 $125 $110 $95 $85 $65 18 Contract No. CI3149367 Professional Services Rev Nov. 1,2011 Clerical Support $55 Additional Costs Mileage: Current IRS Rate Reimbursable Expenses Materials Cost Reimbursable expenses may include specialized equipment rental, printing costs, and expedited shipping costs (same day delivery). Mileage will be charged only for the use of personal automobiles within the City limits. 19 Contract No. C13149367 Professional Services Rev Nov. 1,2011 EXHIBIT "D" INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST'S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY'S INSURANCE REQUIREMENTS AS SPECIFIED BELOW· , .......... MINIMUM LIMITS REQUIRED TYPE OF COVERAGE REQUIREMENT EACH YES YES YES YES YES YES OCCURRENCE AGGREGATE WORKER'S COMPENSATION STATUTORY EMPLOYER'S LIABILITY STATUTORY BODILY INJURY $1,000,000 $1,000,000 GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE $1,000,000 $1,000,000 PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL BODILY INJURY & PROPERTY DAMAGE $1,000,000 $1,000,000 LIABILITY COMBINED. BODILY INJURY $1,000,000 $1,000,000 -EACH PERSON $1,000,000 $1,000,000 -EACH OCCURRENCE $1,000,000 $1,000,000 AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED PROPERTY DAMAGE $1,000,000 $1,000,000 i BODILY INJURY AND PROPERTY $1,000,000 $1,000,000 DAMAGE, COMBINED PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL 08T AIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULT ANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS' COMPENSATION, EMPLOYER'S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSlJREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY (30) DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR'S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY'S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO "ADDITIONAL INSUREDS" A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. 20 Contract No. CI3149367 Professional Services Rev Nov. 1,2011 ------_ ...... _---------------- B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. NOTICES SHALL BE MAILED TO: PURCHASING AND CONTRACT ADMINISTRATION CITY OF PALO ALTO P.O. BOX 10250 PALO ALTO, CA 94303 21 Contract No. C13149367 Professional Services Rev Nov. 1,2011 .---... WESTC-3 OPID: DJ ACORD" CERTIFICATE OF LIABILITY INSURANCE f ... , ~ THis CERiFiCATE 18 ISSUED AS A ...... '5'" OF INf'ORMA'nON MY AND .... v .. r~rQI NO RIGHTS UPON THE CERTIFICAlE HOI.DER. THIS CER'I1F1CA~ DOn NOT AFFIRMATIVELY OR NEGATlVEL.Y AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POL.ICIES BELOW. THIS CEtmFlCATE OF INSURANCE DOE8 NOT CONSTll\JTE A CONTRACT BElWEEN THE ISSUING INSURER(S). AUTHORIZED REPRESENTATIVE OR DDnna IN:D AND THE CERTIFICATE HOL.DER. UIInm,,,",; If Ihe . holder Is 1I1'I1WLII11Vl'l1U. 1NlIt11At:n, tbe muat be If Jill 1t0UR 18 WAlVED~ ~.to • POI!'=Y. may require an endorsement. A statement on this certificate d08ll not confer rtghts to the I holder In lieu of such Phone: 209-478-447 .. r.GIj'."'T ~~1~w.~ Fax::C:41~ i~~ 1~.NoI' ~~ 7037 3.., 95267 --IWC. ,_._.&.D ..... ~ ." 'Co. of Amer IftIIN1) \Vest Coast ~ ,In .. _.:na ... ' ,... ................... Co 2400 camino Ramon Ste. 240 INSURER C : LJoyds of I nntfnn San Ramon. CA 94583-4373 INIUIIERD: INSURER.: IIIIIURI!R" COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE USTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POlICY PERIOD INDICATED. NOTWrTHSTANDING ANY REQUIREMENT. TERM OR COHDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERnFlCATE MAY BE ISSUED OR MAY PERTAIN. THE INSURANCE AfFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO AU. THE TERMS. EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMrrS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. I~J TYPE OF IN8URANCI! IIIIIR IWII'II POLICY NUM8ER ~_~>:!IM'_ LIIIIT1I ! Ia.URAL LIABIUTY EACH OCCURRENCE S 2.000_ \--67SBAlC7265 03119/2013 ~~lii~'tE':~'''> -3OO.00Ii B ~~peIAL GENERAl. LlABllITI' X 0311112014 s r--CLAIMS-MADE [[] OCCUR I t MEl) EXP (Any on. petSOII) s 10,ooa r--I PERSONAl & ADV INJURY S 2,OOO.oOCl t--I GENERAL AGGREGATE , 2,ooo,00Cl 1ffL AGG~nE lIMIT An PER: PftODUCTS • COUPIOP AGO • • .ooo.OOCI X POlICY ~RT LOC I • AIlTOMOIIILE UARITY . fr..o:~~u. LIMIT Is -B AN'fAIlTO 57SBA IC7Zeti 0311912013 1 0311912014 BODILY INJURY (Pet_) • r--ALL OWNED r-SCHEDULED AUTOS rx .wTOS I BODILY INJURY (Per accIdenI) • -NOH-OWNI!D I I ~~ r!. HIRED AUTOS AUTOS j i I _.!ll£l~L_.~-=-.. _. ___ • ~ r.-'---'--- ~ UMIREUA LWI ~OCCUR ! I 0311912013 EACH OCCURRENCE S 3,~~ B EXCUSLWI CtAlM8-MADE i 57SBA IC7285 0311912014 AGGREG.'I TE S OED I X I 100001 --s WOAKEIII COIII'IJIIATION I X I T~~·niU¥S I IO~ A AND IEIII'1DYU8' UA8IUTY YIN j 169117..07 0412812012 0412812013 ~J. EACH ACCIDENT 1,000.000 Nf'f fIROI'RII!roM'ARTNi!MXECUTtve S OFFICEfLtIEloI8£R EXCLUDED? 0 N I A 1.GOO,OOO ,........."In Nil) . ~.L. DISEASE -EA EMPLOYEE S ~==~OPERAT~ I E. L DISEASE -POliCY LIIoIIT S 1,oeo,8OO C PROFESSIONAL LIAB ~E 1081t09·12 04I2BI2012 0412812013 1.000,000 AGGREGATE z.ooo.OIMl I iJE8CIW'iOHOF OPEJIAllONSl &.OCAllONS/V£HiCLES C ...... ACORD WI. A<IdIIIoIIIl .................. tr_ ........ ~ The C:l.ty of' ~.lo Alto, ita councU ...-ber., of'f'ioera, agents, and. amp~o~_. at:e na8Id AdditiOD&l. :tnaurecl, primary and non-oontributory per f'OJ:lll S80 08 attadlecl to the po~icy. CE HOLDER CANCEU.ATION CITOFPA SHOULD AH'f OF THE ABOVE DESCR/BED POlICIES BE CANCELLED BeFORE City of Palo Alto THE EXPlRAnON DAlE THEREOF. NOT1CE INILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. Building Department .... 260 Hamilton Ave AUTIIOIIiZED REP E ~o-s~ Palo Alto, CA 94301 Gary RoeeV:.L.;.. L v--J..-- ® 1988·2010 ACOf(D CORPORATION. All rt g hts reserved. ACORD 25 (2010105) The ACORD name and logo are registered maries of ACORD . __ ._----------------.-~ .. ~-... Foon W-g (Rev. October 200n Request for Taxpayer Identification Number and Certification Give form to the requester. Do not send to the IRS. c'Ii [ c o U Busil'lMS name, II dlfferant from aboVe Check appropiate box: 0 IndMdual1Sole proprietor IilI Corporation 0 Partntnhip o Umlted Habillty company. Enter the tax classification (D=dlsregarded entity. c..oorpOl1l.tion. r:'=partnershlp) ......... . o Exampt payee QIv{see ... Requester's name and addruH (optlonaO is t City, Address (number, street, and apt. Of suite no.) 2400 Camino Ramon, Suite 240 i San "",.no'rI. i~~~--~~--------------------~------------------(f) Ust account numbel'(S) here (optional) Enter your TIN In the appropriate box. The TIN pro~ed must match the name given on Une 1 to avoid I SOcial sec~: num~: backup withholding. For individuals, this Is your social security number (SSN). However, for a resident . allen, sole proprietor, or disregarded entity, see the Part I Instructions on page 3. For other entities, It Is your employer identification number (ElN). If you do not have a number, see How to get a nN on page 3. or Note. If the account Is in more than one name, see the chart on page 4 for guidelines on whose Emp~r Identl1lcetlon number number to enter. 20: 4707579 Under penalties Of perjury, I certify that: 1. The number shown on this form is my correct taxpayer identification number (or I am waiting for a number to be issued to me), and 2. I am not subject to backup withholding because: (a) I am exempt from backup withholding, or (b) I have not been notified by the Intemal Revenue Service ORS) that I am subject to backup withholding as a result of a failure to report all interest or dividends, or (c) the IRS has notified me that I am no longer subject to backup withholding, and 3. I am a U.S. citizen or other U.S. person (defined below). CertiflcatJon instructJon .. You must cross out Item 2 above if you have been notified by the IRS that you are currently subject to backup withholding because you heve failed to report all Interest and dividends on your tax retum. For real estate transactions. item 2 does not apply. For mortgage interest paid, acquisition or abandonment of secured property, cancellation of debt, contributions to an Individual retirement arrangement ~RA), and generally. paYJ!18nts other t i est and dividends, you are not required to sign the Certification, but you must provide your correct TiN. See the I elions on 4 Sign ~er.al Inst~~~~~~~~2!~~~~;;;;~Defi~~m~.tio~n;~~a~u~.~~~pe;~~~n~.~F~o~r~fed~~~lt~ax~~~~~;;.~y;o~u~a;;~ considered a U,S. person if you are: Section ~ferences a~ to the Intemal Revenue Code unless otherwise noted. . Purpose of Form A person who is required to file an information retum with the IRS must obtain your correct taxpayer identification number (TIN) to report. for example, income pald to you. real estate transactions, mortgage interest you paid. acquisition or abandonment of secured property. cancellation of debt. or contributions you made to an IRA. Use Form W-9 only if you are a U.S. person ~ncluding a resident allen), to provide your correct TIN to the person requesting it (the requester) and, when applicable, to: 1. Certlfy that the TIN you are giving is correct (or you are waiting for a number to be issued), 2. Certify that you are not subject to backup withholding, or 3. Claim exemption from backup withholding if you are a U.S. exempt payee. If applicable. you are also certifying that as a U.S. person, your allocable share of any partnership Income from a U.S. trade or business is not subject to the withholding tax on foreign partners' share of effectively connected income. Note. If a requester gives you a form other than Form W-9 to request your TIN, you must use the requester's form if it Is substantially similar to this Form W-9. • An individual who is a U.S. citizen or U.S. resident alien. • A partnership. corporation, company, or association created or organized in the United States or under the laws of the United States, • An estate (other than a fo~ign estate). or • A domestic trust (as defined In Regulations section 301.7701-7). Special rules 10r partnerships. Partnerships that conduct a trade or business in the United States a~ generally required to pay a withholding tax on any foreign partners' sha~ of income from such business. Further, in certain cases where a Form W-g has not been received, a partnership is required to presume that a partner is a foreign person, and pay the withholding tax. Therefore, if you are a U.S. person that is a partner in a partnership conducting a trade or business In the United States, provide Form W-g to the partnership to establish your U.S. status and avoid withholding on your sha~ of partnership income. The person who gives Form W-9 to the partnership for purposes of establishing its U.S. status and avoiding withholding on Its allocable share of net income from the partnership conducting a trade or business in the United States is in the following cases: • The U.S. owner of a disregarded entity and not the entity, Cat. No. 10231X FOlm W-9 {Rev. 1()"200n Mar 05 2013 09:21 HP FaxKutzmann 5107969422 page 2 CITY OF PALO ALTO CONTRACT NO. C13149368 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND KtTZMANN & ASSOCIATES FOR PROFESSIONAL SERVICES 1ms Agreement is entered into on this day of March, 2() 13, ("Agreement") by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("CITY"), and KUTZMANN & ASSOCIATES, INC. a California corporation, located at 39355 California Street, Ste. 200, Fremont, California, 94538, Telephone (51()796-3003 ("CONSULTANT"). RECITALS The following recitals are a substantive portion of this Agreement. A. CITY intends to solicit On·Call Building Plan Check and Building Inspection Services ("Project") and desires to engage a consultant to provide On-Call services in connection with the Project ("Services"). B. CONSULTANT has represented that it has the necessary professional expertise, qualifications, and capability, and all required licenses andlor certifications to provide the Services. C. CITY in reliance on these representations desires to engage CONSULTANT to provide the Services as more fully described in Exhibit "A", attached to and made a part of this Agreement. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree: AGREEMENT SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit "A" in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY. [8J Optional On·Cali Provision (This provision only applies if checked and only applies to on-can agreements. ) Services will be authorized by the City, as needed, with a Task Order !lSsigned and approved by the City's Project Manager. Each Task Order shall be in substantially the sarne form as Exhibit A-I. Each Task Order shall designate a City Project Manager and shall contain a specific scope of work, a specific schedule of performance and a specific compensation amount. The total price of all Task Orders issued under this Agreement shall not exceed the amount of Compensation set forth in Section 4 of this Agreement. CONSULTANT shall only be compensated for work performed under an authorized Task Order and the City may elect, but is not required, to authorize work up to the maximum compensation amount set forth in Section 4. Professional Servic..!s Rev, Nov. 1,2011 Mar 05 2013 09:21 HP FaxKutzmann 5107969422 page 3 SECTION 2. TERM. The term of this Agreement shall be from April 1, 2013 through March 31, 2014 with an option to extend the agreement for two, one year, additional terms, unless telUlinated earlier pursuant to Section 19 of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE, Time is of the essence in the performance of Services under this Agn:ement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit "8", attached to and made a part of this Agreement. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY's agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit "A", including both payment for professional services and reimbursable expenses, shall not exceed Two Hundred Forty Thousand Dollars ($240,000.00). In the event Additional Services are authorized, the total compensation for services and reimbursable expenses shall not exceed Two Hundred Forty Thousand Dollars ($240,000.00). The applicable rates and schedule of payment are set out in Exhibit "C-I", entitled "HOURLY RATE SCHEDULE," which is attached to and made a part of this Agreement. Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit "C". CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but wlrich is not included within the Scope of Services described in Exhibit "A". SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the services performed and the applicable charges (including an identification of personnel who performed the services, hours worked, hourly rates, and reimbursable expenses), based upon the CONSULTANT's billing rates (set forth in Exhibit "C-l "). If applicable, tbe invoice shall also describe the percentage of completion of each task. The information in CONSULTANT's payment requests shall be subject to verification by CITY. CONSULTANT shall send all invoices to the City's project manager at the address specified in Section 13 below. The City will generally process and pay invoices within thirty (30) days of receipt. SECTION 6. QUALIFICATIONS/STANDARD QF CARE. All of the Services shall be performed by CONSULTANT or under CONSULTANT's supervision. CONSUL T ANT represents that it possesses the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subconsultants, ifpennitted, have and shall maintain during the tenn of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All of the services to be furnished by CONSULTANT under this agreement shall meet the 2 ColllractNo. C13149368 PrnfeS'sionaj Sen:ices Rev. Nov. 1,2011 Mar 05 2013 09:22 HP FaxKuumann 5107969422 page 4 professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance oftbe Services. SECTION 8. ERRORS/OMISSIONS. CONSULT ANT shall correct, at no costto CITY, any and all errors, omissions, or ambiguities in the work product submitted to CITY, provided CITY gives notice to CONSULTANT. If CONSUL TANT has prepared plans and specifications or other design docwnents to construct the Project, CONSULTANT shall be obligated to correct any and all errors, omissions Or ambiguities discovered prior to and during the course of construction of the Project. This obligation shall survive termination ofthe Agreement. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULT ANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds ten percent (10%) of the CITY's stated construction budget, CONSULTANT shall make recommendations to the CITY for aligning the PROJECT design with the budget, incorporate CITY approved reconunendations, and revise the design to meet the Project budget, at no additional cost to CITY. SECTION 10. INDEPENDENT CONTRACTOR. It is understood and agreed that in performing the Services under this Agreement CONSULTANT, and any person employed by or contracted with CONSULTANT to furnish labor andlor materials under this Agreement, shall act as and be an independent contractor and not an agent or employee of the CITY. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSUL TANT's obligations hereunder without the prior written consent of the city manager. Consent to one assignment will not be deemed to be consent to any subsequent assignment. Any assignment made without the approval of the city manager will be void. SECTION 12. SUBCONTRACTING. I8JOption A: No Subcontractor: CONSULTANT shall not subcontract any portion of the work to be performed under this Agreement without the prior written authorization of the city manager or designee. DOption B: Subcontrac:ts Authorized: Notwithstanding Section I I above, CITY agrees that subconsultants may be used to complete the Services. The subconsultants authorized by CITY to perform work on this Project are: 3 Contract No. C13149368 Professional Services Rev, Nov. 1,2011 Mar 05 2013 09:23 HP FaxKutzmann 5107969422 page 5 CONSULTANT shall be responsible for directing the work of any subconsultants and for any compensation due to subconsultants. CITY assumes no re5pOnsibility whatsoever concerning compensation. CONSULTANT shall be fully responsible to CITY for all acts and onllssions of a subconsultant. CONSULTANT shall change or add subconsultants only with the prior approval of the city manager or his designee. SECTION 13. PROJECT MANAGEMENT. mN:-;UL T ANT \AnI! assign Mike B:lird:i.E the project director to have supervisory responsibility for the perfonnance. progress, and execution of the Services and to represent CONSULTANT during the day-to-day work on the Project. If circumstances cause the substitution of the project director, project coordinator, or any other key personnel for any reason, the appointment of a substitute project director and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY's project manager. CONSULTANT, at CITY's request, shall promptly remove personnel who CITY finds do not perfonn the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property. The City's project manager is Peter Pimejad, Development Services Department Palo Alto, CA 94303, Telephone (650)329-2349, Email peter.pimejad@cityofpaloaito.org. The project manager will be CONSULTANT's point of contact with respect to performance, progress and execution of the Services. The CITY may designate an alternate project manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. Upon delivery, all work product, including without limitation, al1 writings, drawings, plans, reports, specifications, calculations, docwnents, other materials and copyright interests developed under this Agreement shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all cop)Tights which arise from creation of the work pursuant to this Agreement shall be vested in CITY, and CONSULTANT waives and relinquishes all claims to copyright or other intellectual property rights in favor of the CITY. Neither CONSULTANT nor its contractors, if any, shall make any of such materials available to any individual or organization ~thout the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the scope of work. SECTION 15. AUDITS. CONSULTANT ~Il pennit CITY to audit, at any reasonable time during th e term of this Agreement and for three (3) years thereafter , CONSULTANT's records pertaining to matters covered by this Agreement. CONSULTANT further agrees to maintain and retain such records for at least three (3) years after the expiration or earlier termination of this Agreement. SECTION 16. INDEMNITY. 0[Option A applies to the following design professionals pursuant to Ch,il Code Section 2782.8: architects; landscape architects; registered profeSSional engineers and licensed professionallBnd surveyors.] 16.1. To the fullest extent permitted by law, CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an "Indemnified Party") from and against any and all demands, claims, or liability of 4 ContiactNo. CJ3149368 Professional Services Rev. Nov. 1.2011 Mar 05 2013 09:24 HP FaxKutzmann 5107969422 page 6 any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorneys fees, experts fees, court costs and disbursements ("Claims") that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. O[Option B applies to any consultant who does not qualify a5 II design proCessional as defined in Civil Code Section 2782.8.] 16.1. To the fullest extent permitted by law, CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an "Indemnified party") from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorneys fees, experts fees, court costs and disbursements ("Claims") resulting from, arising out of or in any manner related to performance or nonperformance by CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party: 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnitY an Indemnified Party from Claims arising from the active negligence, sole negligence or willful misconduct of an Indemnified Party. 16.3. The acceptance of CONSULTANT's services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. The waiver by either party of any breach or violation of any covenant, term, condition or provision of this Agreement, or of the provisions of any ordinance or law, will not be deemed to be a waiver of any other term, covenant, condition, provisions, ordinance or law, or of any subsequent breach or violation of the same or of any other term, covenant, condition, provision, ordinance or law. SECTION 18. INSURANCE. 18.1. CONS UL T ANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit "D"- CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any generailiabiIity or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best's Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the tenn of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certiftcates evidencing such insurance shall be filed with CITY concurrently S C(]ntract No. C1314~368 Professional SIlJ\'iceS Rev, Nov. 1,2011 Mar 05 2013 09:25 HP FaxKutzmann 5107969422 page 7 with the execution of this Agreement. The certificates will be subjectto the approval ofCITY'g Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the PurcllasingManager thirty (30) days' prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days' notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice oflhe cancellation or modification withln two (2) business days of the CONSULTANT's receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance ore provided to CITY's Purchasing Manager during the entire term oflhis Agreement. 18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT's liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of inswance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is tenninated or the term haa expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may suspend the perfonnance ofthe Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. Upon receipt of such notice, CONSULTANT will immediately discontinue its perfonnance of the Services. 19 .2. CONSULTANT may tenninate this Agreement or suspend its performance of the Services by giving thirty (30) days prior written notice thereof to CITY, but only in the event of a substantial failure of performance by CITY. 19.3. Upon such suspension or termination, CONSULTANT shall deliver to the City Manager immediately any and all copies of studies, sketches, drawings, computations, and other data, whetller or not completed, prepared by CONSULTANT or its contractors, if any, or given to CONS UL T ANT or its contractors, if any, in connection with this Agreement. Such materials will become the property of CITY. 19.4. Upon such suspension or termination by CITY, CONSULTANT will be paid for the Services rendered or materials delivered to CITY in accordance with the scope of services on or before the effective date (i.e., 10 days after giving notice) of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULT ANT only for that portion of CONSULTANT's services which are of direct and immediate benefit to CITY as such determination may be made by the City Manager acting in the reasonable exercise ofhislher discretion. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 19.4,20, and 25. 19.5. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement. 6 ConlJ'act No, Ct3149368 Professional Services Rev. Nov. 1,2011 t, Mar 05 2013 09:26 HP FaxKutzmann 5107969422 page 8 SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certiiied mail, addressed as follows: To CITY: Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Purchasing Manager To CONSULTANT: Attention of the project director at the address of CONSULTANT recited above SECTION 21. CONFLICT OF INTEREST. 21.1. In accepting this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, fmancial or otherwise, which would conflict in any manner or degree with the performance of the Services. 212. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subconsultants, contractors or persons having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California. 21.3. If the Project Manager determines that CONSULTANT is a "Consultant" as that term is defined by the Regulations of the Fair Political Practices Commission, CONSULTANT shall be required and agrees to file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act. SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.3 0.51 a of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. SECTION 23. ENVlRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. COl'\SULTANT shall comply ",rith the City's Environmentally Preferred Purchasing policies which are available at the City's Purchasing Department, incorporated by 7 Contract NQ, C1l149368 Professionlll Services Rev. Nov. 1,2011 Mar 05 2013 09:27 HP Fa><Kutzmann 5107969422 page 9 reference and may be amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of the City's Zero Waste Program. Zero Waste best practices include first minimizing and reducing waste; second, reusing waste and third, recycling or composting waste. In particular, Consultant shall comply with the following zero waste requirements: • All printed materials provided by Consultant to City generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of30% or greater post-consumer content paper, unless otherwise approved by the City's Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of30% or greater post-consumer material and printed with vegetable based inks. • Goods purchased by Consultant on behalf of the City shall be purchased in accordance with the City's Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Office. • Reusable/returnable pallets shall be taken back by the Consultant, at no additional costto the City, for reuse or recycling. Consultant shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. NON-APPROPRIATIO~ 24.1. This Agreement is subjectto the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for trus Agreement are no longer available. This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision ofihis Agreement. SECTION 25. MISCELLANEOUS PROVISIONS. 25.1. This Agreement will be governed by the laws of the State of California. 25.2. In the event that an action is brought, the parties agree that trial of such action "ill be vested exclusively in the state courts of California in the County of Santa Clara. State of California. 25.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys' fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys' fees paid to third parties. 25.4. This document represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. 8 Conlract No. C13149J68 Pro~S5jonal Serl/ices Rev. Nov. 1,2011 Mar 05 2013 09:28 HP FaxKutzmann 5107969422 page 10 This document may be amended only by a written instrument, which is signed by the parties. 25.5. The covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators, assignees, and consultants of the parties. 25.6. If a court of competent jurisdiction finds or mles that any provision of this Agreement or any amendment thereto is void or unenforceable, the unaffected provisions of this Agreement and any amendments thereto will remain in full force and effect. 25.7. All exhibits referred to in this Agreement and any addenda, appendices, attachments, and schedules to this Agreement which, from time to time, may be referred to in any duly executed amendment hereto are by such reference incorporated in this Agreement and will be deemed to be a part of this Agreement. 25.8 If, pursuant to this contract with CONSULTANT, City shares with CONSULTANT personal infurmation as defmed in California Civil Code section 1798. 81.5( d) about a California resident ("Personal Information"), CONSULTANT shall maintmn reasonable and appropriate security procedures to protect that Personal Information, and shall inform City immediately upon leaming that there has been a breach in the security of the system or in the security of the Personal Information. CONSULTANT shall not use Personal Information for direct marketing purposes without City's express written consent. 25.9 All unchecked boxes do not apply to this agreement. 25.10 The individuals executing this Agreement represent and warrant thatthey have the legal capacity and authority to do so on behalf of their respective legal entities. 25.11 This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement 9 Contract No. C13149368 Professions] SemCt5 Rev. Nov. 1,2011 Mar 05 2013 09:28 HP Fa!<Kutzmann 5107969422 page 11 IN WIlNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement on the date first above written. 10 ConlJ'act No. CJ3149368 Professional Services Rev. Nov. 1,2011 Mar 05 2013 09:29 HP FaxKutzmann 5107969422 page 12 CITY OF PALO ALTO KUTZMANN & ASSOCIATES, INC. ByVc:=/l% City Manager o 1;/1 Name: r d-f,-i~-""" f1 oJ 'l-'*a.i< A--- Title: e6'S' ;.J &< I- APPROVED AS TO FORM: Senior Asst. City Attorney Attachments: EXHIBIT "A": EXHIBIT "A-I" EXHIBIT "B": EXHIBIT "C": EXHIBIT "C-I ": EXHIBIT "0": SCOPE OF WORK ON CALL TASK ORDER SCHEDULE OF PERFORMANCE COMPENSATION SCHEDULE OF RATES INSURANCE REQUIREMENTS 18 Contrst:tNo. C13149368 Profess.ional Services Rev Nov. 1,2011 Mar 05 2013 09:29 HP FaxKutzmann 5107969422 page 13 EXHIBIT A SCOPE OF SERVICES CONSULTANT shall provide professional services consisting of Building Plan Check and Building Inspection services on an as-needed (on-call) basis. Building Plan Cbe~k Services CONSULTANT shall be responsible for providing building plan check services as requested by the City on an as needed basis, Plan check services shall be provided either by supplying staff to work on site at the City's Development Center under the direction of the Chief Building Official or by performing plan reviews off site at CONSULTANT'S office when plans are transmitted to CONSULTANT by the City. The manner in which plan check services will be performed shall be determined by the City's Chief Building Official. When requested to provide plan check services, CONSULTANT shall be expected to perform the following services: I, Preliminary plan review consultations in CONSULTANT'S office or by telephone/e-maiI, 2. Initial plan review of proj ect plans and other related documents submitted in conjunction with applications for Building Permits to detennine compliance with the adopted uniform codes, applicable laws, regulations and local ordinances. The services shall include, but not be limited to, review of the following, as applicable to each project: Architectwal, Structural, Civil, Electrical, Mechanical and Plumbing plans, structural calculations, accessibility compliance, fire and life safety components, geotechnical reports, Green Building and Energy Code compliance documentation and deferred submittal items. 3. Provide the applicant's designee and the City, a typed list of items needing clarification or change to achieve conformance with the above regulations. 4. Maintain sufficient communication with the applicant's designee(s), either by telephone/e- mail, mail or meeting in CONSULTANT'S office and perfonn all necessary plan rechecks to achieve conformance to the regulations. 5. Provide recommendations and acts a.s liaison to the Chief Building Official, or his designee, either by maille-mail, telephone or in CONSULTANT'S office, to ensure compliance with Palo Alto's Municipal Code requirements. to COnlrllct No. C13J49368 Professionsl Services Rev Nov. 1. 2011 Mar 05 2013 09:30 HP Fa><Kutzmann 5107969422 page 14 6. Perform plan reviews of revisions to plans that have previously been approved for permit issuance, or perform plan reviews of changes to plans prior to such approval. 7. Attend meetings related to proposed building projects at the request of the Chief Building Official at locations other than CONSULTANT'S office. 8. Provide City with periodic plan review status reports for all projects assigned by the Chief Building Official. When requested to furnish staff, CONSULTANT shall provide resumes (including licenses and other credentials) of all candidates who shall be available to perform Building Plan Check services. The City retains the right to select or reject any or all candidates based on a review of res urnes andlor subsequent interviews. Building Inspection Services CONSULTANT shall be responsible for providing building inspection services on an as needed basis, as requested by the City, to meet workload demands and service delivery goals. The City shall use the services of the CONSULTANT'S firm to provide inspection staff to supplement the City's regular staff. When requested to provide building inspection services, CONSULTANT shall perform the following services: 1. Perform all requested inspections and re-inspections for compliance with City and State codes and applicable regulations. 2. Coordinate all inspection and re-inspection requests. 3. Confer with the Chief Building Official, building plan check supervisor, andlor Inspection Services Supervisor on all discretionary decisions or requests for alternate materials or types of construction. 20 Contract" No. C13149368 Professional Services Rev Nov. 1,2011 Mar 05 2013 09:31 HP FaxKutzmann 5107969422 page 15 4. Coordinate with the Chief Building Official and/or Inspection Services Supervisor on all Certificates of Occupancy to ensure that all applicable City departments and regulatory agencies have approved the project. 5. Enter all inspection records into the Accela permit tracking system. Maintain ail inspection records for all assigned projects, to be turned over to the City within five working days of when requested by the City. Records include all correction notices and al1 documentation related to design changes. 6. Coordinate inspection activities with any and all third-party inspectors and special inspection agents retained by owners and/or their contractors. 7. Have CASp certified staff available to the City on an as-needed basis. 8. Participate in and attend weekly Inspection Division staff meetings and training events sponsored by the City. When requested to furnish staff, CONSULTANT shall provide resumes (iocluding licenses and other credentials) of all candidates who shall be available to perfonn Building Inspection services. The City retains the right to select or reject any or al! candidates based on a review ofresumes andlor subsequent interviews. 21 Contract No. C 1314936& Professional Services RsvNov.l,2011 Mar 05 2013 09:32 HP FaxKutzmann 5107969422 page 16 EXlDBIT "A-I" PROFESSIONAL SERVICES TASK ORDER Consultant hereby agree, to perform the work detailed below in accord.nce with all the term, and conditions ofllie Agreement referenced in Item IA below. All exhibit, referenced in Item 8 are incorporated into the Agreement by thi, reference. The Consultant shall furni,h the necessary facilities, professional, technicw and supporting personnel required by this Task Order as described below. CONTRACT NO. Purchase Requisition No. lAo lB. 2. MASTER AGREEMENT NUMBER TASK ORDER NO. CONSULTANT ISSUE DATE 3. 4 PERIOD OF PERFORMANCE: START: COMPLETION: TOTAL TASK ORDER PRICE: $ BALANCE REMAINlNO IN MAS"'T"'E,-R-A,...,O"'RE=E""ME=N::T:-:S, ___________ _ 5. BUDGET CODE: COST CENTER ------COSTELEMENT WBS/CIP PHASE_ CITY PROJECT MANAGER'S NAMEIDEPARTMENT ---~ 6. 7. DESCRIPTION OF SCOPE OF SERVICES MUST INCLUDE: • WORK TO BE PERFORMED • SCHEDULE OF WORK • BASIS FOR PAYMENT & FEE SCHEDULE • DELlVERABLES REIMBURSABLES (with "not to exceed" cost) 8. AITACHMENTS: A: Scope of Services B: ____________ _ I hereby authorize the performan .. of the work described above in Ibi. Task Order, APPROVED: CITY OF PALO ALTO By: ______________________ _ Name Title ---------------- n.te ________________ _ I hereby acknowledge receipt and acceptance of tbi. Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: COMPANYNAME: ______________ __ By:, _________________ _ Name Title ----------------- Date _________________ _ 22 Contt8ctNo. CIJI49368 Professumal Services R~yNoy. 1.2011 Mar 05 2013 09:32 HP FaxKutzmann 5107969422 page 17 EXHmIT "B" SCHEDULE OF PERFORMANCE (Not Applicable) 23 Contract No. C13149368 Professional Services Rev Nov. 1,2011 Mar 05 2013 09:33 HP FaxKutzmann 5107969422 page 18 EXHIBIT "C" COMPENSA TION The CITY agrees to compensate the CONSULTANT for professional services perfonned in accordance with the terms and conditions ofthis Agreement based on the hourly rate schedule attached as Exhibit C-l. The compensation to be paid to CONSULTANT under this Agreement for all services described in Exhibit "A" ("Services") and reimbursable expenses shall not exceed $240,000.00. CONSULTANT agrees to complete all Services, including reimbursable expenses, within this amount. In the event CITY authorizes any Additional Services, the maximum compensation shall not exceed $240,000.00. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTAr\T shall be reimbursed are: A. Travel outside the San Francisco Bay area, including transportation and meals, will be reimbursed at actual cost subject to the City of Palo Alto's policy for reimbursement of travel and meal expenses for City of Palo Alto employees. B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges are reimbursable at actual cost. All requests for payment of expenses shall be accompanied by appropriate backupinformation. Any expense anticipated to be more than $0.00 shall be approved in advance by the CITY's project manager. ADDITIONAL SERVICES The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY's project manager' s request, shall submit a detailed v,Titten proposal including a description oflhe scope of services, schedule, level of effort, and CONSULTANT's proposed maximum compensation, including reimbursable expenses, for such services based on the rates set forth in Exhibit Col. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY's Project Manager and CONSULT ANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement. Rev Nov. I. 20ll 24 Contract No. CI3149368 Mar 05 2013 09:34 HP FaxKutzmann 5107969422 page 19 Permit Processing: EXHmIT "C-I" HOURLY RATE SCHEDULE Permit Processing. Building Technician Hourly rates to be negotiated with the City based on the individuals' qualifications, experience and additional special knowledge and skills required by the City. Clerical Staff For general clerical duties that do not involve pennit processing: $45.00 per hour Plan Check: Full Plan Checks: Standard fee for a full plan check (including structural and non-structural, disabled access, energy conservation, mechanical. electrical and plumbing) is based on a percentage of the Building Division's plan check fee. Additional rechecks are billed on a time & materials basis. This fee includes the initial review and the two rechecks. 6S percent Structural Only Plan Checks The Kutzrnann & Associates' fee for a structural only plan check is based on a percentage for the Building Division's plan check fee. This fee includes the initial review and the two rechecks. 45 percent Elective (3,.Party) Plan Check There is no cost to the City of Palo Alto for this service. Billing and payments are handled directly between the Kutzmann & Associates and the permit applicants. Expedited Plan Check Fee. Expedited fees are typically 1.5 times our standard fee but may be negotiable dependent on the size and complexity of the project. Hourly Rates Additional rechecks, non-standard plan checks (such as for revisions to existing permits) as well as consultation and in-house plan checking services, are billed on a time & materials basis. Current rate: $95 per hour Method 0/ Invoicing Our plan check services are invoiced monthly and are due within 30 days uniess other arrangements are made. Invoices will be fully itemized and provide sufficient . infonnation for approving payment and audit purposes. Plan check jobs are invoiced after the initial plan check has been completed. 2S Contract No. C13149368 Professional Services Rev Nov. I, 2011 Mar 05 2013 09:34 HP FaxKutzmann 5107969422 page 20 Building Inspection: Curren! Building Inspector $86.00 per hour Current inspector if used in a supervisory/managerial role: $90.00 per hour New Inspection Personnel Hourly rates to be negotiated with the City based on individuals' qualifications, experience and any additional special knowledge Of skills required by the City. Melf,od 0/ Invoicing Building inspector work hours are billed on bi-monthly basis at the end of each Kutzmann & Associates' pay period. Miscellaneous Charges: Note: Personnel charges are not billed/or general secretarial services. office management, accounting and maintenance; these items are included in overhead Printing and copying costs are based on fifteen cents ($0.20) per sheet (8 y, x 11). Mileage rate is $0.48 per mile Any other outside senices are billed based on the actual cost plus ten percent (10%). Overtime charges are 1.5 times the regular rate. 26 Contli1d No. C13)4936B Professional Services Rev Nov. 1,2011 Mar 05 2013 09:35 HP FaxKutzmann 5107969422 page 21 EXHIBIT "D" INSURANCE REQUIREMENTS CONTRACTORS TOTHE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SlWL FOR THE TIlRMOF THE CONTRACT OBTAIN AND MAINT Am INSURANCE IN THE AMOUNTS FOR THE CDVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM fiEST'S KEY HATING OF A-,VI!, OR mGHER. LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIrDRNIA. A WARD IS CONTINGENT ON COMPLIANCE WITH CITY'S INSURANCE REOUIREMENTS AS SPECIFIED BELOW: MINIMUM LIlllITS REQUIRED TYPE OF COVERAGB REQUIREMENT ~ACH 'ES YES YES YES YES .. " OCCURRENCE AGGREGATE WORKER'S COMPENSATION STATUTORY EMPLOYER'S LIABILITY STATUTORY BODILY INJURY $1,OO().OOD $1,000,000 GENERALLrABJLITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE ~I,OOO,OOO SI,OOO,OOO PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL BODILY INJURY & PROPERTY DAMAGE SI,OOO,OOO $1,000,000 LIABILITY COMBINED. BODILY INJURY $1,000,000 $1,000,000 EACH PERSON $1,000,000 $1,000,000 -EACH OCCURRENCE $1,000,000 $1,000,000 AUTOMOBILE L1ABn.ITY, INCLUDING ALL OWNED, HIRED, NON-OWN ED PROPERTY DAMAGE $1,000.000 $1,000,000 BODILY INJURY AND PROPERTY $1,000,000 $1,000,000 DAMAGE, COMBINED PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPHACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMAl":CE ALL DAMAGES $1 VOV,OOO THE CITY OF PALO ALTO 18 TO BE NAMED AS AN ADDITIO:-iAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL ODT AIN AND MAINT Am, IN FULL FORCE ,\ND EFFECTTHROUGHOUTTHE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CGNTRACTORAND ITS SUBCONSULTANTS,IF ANY, BUT ALSO, wrmrnE EXCEPTION OF WORKERS' COMPENSATION, EMPLOYER'S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCILMEM8J:RS, OFFICERS,AG'NTS,AND EMPLOVEF,S. L INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY (30) DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CON1RACfOR'S AGREEMENT TO INDEMNIFY CITY. C DEDUCTIBLE AMOUNTS IN BXCESS OF $5,000 REQUIRE CITY'S P ruOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE. IlL ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO "ADDITIONAL INSUREDS" A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDBD BY THIS POLlCY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTIIER INSURANCE CARRIED BY OR FOR THE BBNEFIT OF THE ADDITIONAL INSUREDS. 27 Contract ND. C13149368 Professional Services Rev Nov. 1. 2011 Mar 05 2013 09:36 HP FaxKutzmann 5107969422 page 22 B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM. OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSCRED AGAINST ANOTHER, BUT TIllS BNDORSBMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF TIlE COMPANY UNDER TIilS POLICY. C. NOnCE OF CANCELLA nON I. IF THE POLICY IS CANCBLED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER TIlANTHENON-PA YMENT OF PREMIUM, THEISSUINGCOMPANY SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. NOTICES SHALL BE MAILED TO: PURCHASING AND CONTRACT ADMINISTRATION CITY OF PALO ALTO P.O. BOX 10Z50 PALO ALTO, CA 94303 28 Contract No. Cl3149Jfi8 ProfessionllJ Services Rev Nov. J, 2011 CITY OF PALO ALTO CONTRACT NO. C13149369 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND TRB & ASSOCIATES FOR PROFESSIONAL SERVICES This Agreement is entered into on this day of March, 2013, ("Agreement") by and between the CITY OF P ALO ALTO, a California chattered municipal corporation ("CITY"), and TRB & ASSOCIATES, a California corporation, located at 3180 Crow Canyon Place, Suite 216, San Ramon, California, 94583, Telephone (925)866-2633 ("CONSULTANT"). RECITALS The following recitals are a substantive portion ofthis Agreement. A. CITY intends to solicit On-Call Building Plan Check Services ("Project") and desires to engage a consultant to provide On-Call services in connection with the Project ("Services"). B. CONSULTANT has represented that it has the necessmy professional expeliise, qualifications, and capability, and all required licenses andlor celtifications to provide the Services. C. CITY in reliance on these representations desires to engage CONSULTANT to provide the Services as more fully described in Exhibit "A", attached to and made a patt ofthis Agreement. NOW, THEREFORE, in consideration ofthe recitals, covenants, terms, and conditions, in this Agreement, the patties agree: AGREEMENT SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit "A" in accordance with the terms and conditions contained in this Agreement. The perfOlmance of all Services shall be to the reasonable satisfaction of CITY. ~ Optional On-Call Provision (This provision only applies if checked and only applies to on-call agreements. ) Services will be authorized by the City, as needed, with a Task Order assigned and approved by the City's Project Manager. Each Task Order shall be in substantially the same form as Exhibit A-I. Each Task Order shall designate a City Project Manager and shall contain a specific scope of work, a specific schedule of performance and a specific compensation amount. The total price of all Task Orders issued under this Agreement shall not exceed the amount of Compensation set forth in Section 4 of this Agreement. CONSULT ANT shall only be compensated for work perfOlmed under an authorized Task Order and the City may elect, but is not required, to authorize work up to the maximum compensation amount set fOlih in Section 4. Professional Services Rev. Nov, 1,2011 SECTION 2. TERM. The term of this Agreement shall be from April 1, 2013 through March 31, 2014 with an option to extend the agreement for two, one year, additional telms, unless terminated earlier pursuant to Section 19 ofthis Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set fOlih in Exhibit "B", attached to and made a part of this Agreement. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY's agreement to extend the term or the schedule for perfOlmance shall not preclude recovelY of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance ofthe Services described in Exhibit "A", including both payment for professional services and reimbursable expenses, shall not exceed Fifty Thousand Dollars ($50,000.00). In the event Additional Services are authorized, the total compensation for services and reimbursable expenses shall not exceed Fifty Thousand Dollars ($50,000.00). The applicable rates and schedule of payment are set out in Exhibit "C-I ", entitled "HOURLY RATE SCHEDULE," which is attached to and made a pali of this Agreement. Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit "C". CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean any work that is determined by CITY to be necessalY for the proper completion of the Project, but which is not included within the Scope of Services described in Exhibit "A". SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the services performed and the applicable charges (including an identification of personnel who pelfOlmed the services, hours worked, hourly rates, and reimbursable expenses), based upon the CONSULTANT's billing rates (set forth in Exhibit "C-l "). If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT's payment requests shall be subject to verification by CITY. CONSULTANT shall send all invoices to the City's project manager at the address specified in Section 13 below. The City will generally process and pay invoices within thiJiy (30) days of receipt. SECTION 6. OUALIFICATIONS/STANDARD OF CARE. All of the Services shall be performed by CONSULTANT or under CONSULTANT's supervision. CONSULTANT represents that it possesses the professional and technical personnel necessalY to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perfOlm the Services assigned to them. CONSULTANT represents that it, its employees and subconsultants, if pelmitted, have and shall maintain during the term of this Agreement all licenses, pelmits, qualifications, insurance and approvals of whatever nature that are legally required to perfOlm the Services. 2 Contract No. C13149369 Professional Services Rev. Nov. 1,2011 All of the services to be furnished by CONSULTANT under this agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout Califomia tmder the same or similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perfOim Services under this Agreement. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the perfOimance of the Services. SECTION 8. ERRORS/OMISSIONS. CONSULTANT shall comct, at no cost to CITY, any and all errors, omissions, or ambiguities in the work product submitted to CITY, provided CITY gives notice to CONSULTANT. If CONSULTANT has prepared plans and specifications or other design documents to construct the Project, CONSULTANT shall be obligated to COlTect any and all el1'ors, omissions or ambiguities discovered prior to and during the course of construction of the Project. This obligation shall survive termination of the Agreement. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds ten percent (10%) of the CITY's stated constmction budget, CONSULT ANT shall make recommendations to the CITY for aligning the PROJECT design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. SECTION 10. INDEPENDENT CONTRACTOR. It is understood and agreed that in pelfOiming the Services under this Agreement CONSULTANT, and any person employed by or contracted with CONSULTANT to fumish labor and/or materials under this Agreement, shall act as and be an independent contractor and not an agent or employee of the CITY. SECTION 11. ASSIGNMENT. The patties agree that the expeltise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT's obligations hereunder without the prior written consent of the city manager. Consent to one assignment will not be deemed to be consent to any subsequent assignment. Any assignment made without the approval of the city manager will be void. SECTION 12. SUBCONTRACTING. 18I0ption A: No Subcontractor: CONSULTANT shall not subcontract any portion ofthe work to be performed under this Agreement without the prior written authorization of the city manager or designee. DOption B: Subcontracts Authorized: Notwithstanding Section 11 above, CITY agrees that subconsultants may be used to complete the Services. The subconsultants authorized by CITY to 3 Contmct No. C13149369 ProfessiollAI Services Rev. Nov. 1,2011 perfOlm work on this Project are: CONSULTANT shall be responsible for directing the work of any sub consultants and for any compensation due to subconsultants. CITY assumes no responsibility whatsoever concerning compensation. CONSULTANT shall be fully responsible to CITY for all acts and omissions of a subconsultant. CONSULTANT shall change 01' add subconsultants only with the prior approval of the city manager 01' his designee. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Todd Bailey as the proj ect director to have supervisOly responsibility for the perfolmance, progress, and execution of the Services and to represent CONSULTANT during the day-to-day work on the Project. If circumstances cause the substitution of the project director, project coordinator, 01' any other key personnel for any reason, the appointment of a substitute project director and the assignment of any key new 01' replacement personnel will be subject to the prior written approval of the CITY's project manager. CONSULT ANT, at CITY's request, shall promptly remove personnel who CITY finds do not perfOim the Services in an acceptable manner, are uncooperative, 01' present a threat to the adequate 01' timely completion of the Project or a threat to the safety of persons 01' property. The City's project manager is Peter Pirnejad, Development Services Depmtment Palo Alto, CA 94303, Telephone (650)329-2349, Email peter.pirnejad@cityofpaloalto.org. The project manager will be CONSULTANT's point of contact with respect to performance, progress and execution of the Services. The CITY may designate an alternate project manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. Upon delivelY, all work product, including without limitation, all writings, drawings, plans, repOlts, specifications, calculations, documents, other materials and copyright interests developed under this Agreement shall be and remain the exclusive property of CITY without restriction 01' limitation upon their use. CONSULTANT agrees that all copyrights which arise £i'om creation of the work pursuant to this Agreement shall be vested in CITY, and CONSULTANT waives and relinquishes all claims to copyright or other intellectual property rights in favor of the CITY. Neither CONSULTANT nor its contractors, if any, shall make any of such materials available to any individual or organization without the prior written approval of the City Manager 01' designee. CONSULTANT makes no representation of the suitability of the work product for use in 01' application to circumstances not contemplated by the scope of work. SECTION 15. AUDITS. CONSULTANT will pelmit CITY to audit, at any reasonable time during the term of this Agreement and for three (3) years thereafter, CONSULTANT's records pertaining to matters covered by this Agreement. CONSULTANT further agrees to maintain and retain such records for at least three (3) years after the expiration 01' earlier termination of this Agreement. SECTION 16. INDEMNITY. ~[Option A applies to the following design professionals pursuant to Civil Code Section 2782.8: architects; landscape architects; registered professional engineers and licensed pl'Ofessionalland surveyors.] 16.1. To the fullest extent permitted by law, CONSULTANT shall protect, indemnity, defend and hold harmless CITY, its Council members, officers, employees and agents (each an "Indemnified Pmty") from and against any and all demands, claims, or liability of 4 Contract No. C13149369 Professional Services Rev. Nov. 1,2011 any nature, including death or injUly to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorneys fees, experts fees, court costs and disbursements ("Claims") that arise out of, peliain to, or relate to the negligence, recklessness, or willful misconduct ofthe CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified PaJiy. 16.2. Notwithstanding the above, nothing in this Section 16 shall be constlUed to require CONSULTANT to indemnifY an Indemnified Party from Claims aJ'ising £i'om the active negligence, sole negligence or willful misconduct of an Indemnified Party. 16.3. The acceptance of CONSULTANT's services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. The waiver by either pmiy of any breach or violation of any covenant, telm, condition or provision ofthis Agreement, or of the provisions of any ordinance or law, will not be deemed to be a waiver of any other term, covenant, condition, provisions, ordinance or law, or of any subsequent breach or violation ofthe same or of any other telm, covenant, condition, provision, ordinance or law. SECTION 18. INSURANCE. 18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit "D". CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through cml'iers with AM Best's Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Celtificates evidencing such insurance shall be filed with CITY concUll'entiy with the execution of this Agreement. The celtificates will be subject to the approval of CITY's Risk Manager and will contain aJ1 endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thiJiy (30) days' prior written notice ofthe cancellation or modification. Ifthe insurer cancels or modifies the insurance and provides less than thiJiy (30) days' notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT's receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY's Purchasing Manager during the entire term ofthis Agreement. 5 Contract No. C13149369 Professional Services Rev. Nov. 1,2011 18.4. The procuring of such required policy or policies of insurance will not be constmed to limit CONSULTANT's liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injuty, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injuty, or loss arising after the Agreement is terminated or the term has expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may suspend the performance of the Services, in whole or in pali, or telminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. Upon receipt of such notice, CONSULT ANT will immediately discontinue its performance of the Services. 19.2. CONSULTANT may telminate this Agreement or suspend its perfOimance of the Services by giving thirty (30) days prior written notice thereofto CITY, but only in the event of a substantial failure of performance by CITY. 19.3. Upon such suspension or termination, CONSULTANT shall deliver to the City Manager immediately any and all copies of studies, sketches, drawings, computations, and other data, whether or not completed, prepared by CONSULTANT or its contractors, if any, or given to CONSULTANT or its contractors, if any, in connection with this Agreement. Such materials will become the property of CITY. 19.4. Upon such suspension or termination by CITY, CONSULT ANT will be paid for the Services rendered or materials delivered to CITY in accordance with the scope of services on or before the effective date (i.e., 10 days after giving notice) of suspension or termination; provided, however, ifthis Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT's services which are of direct and immediate benefit to CITY as such determination may be made by the City Manager acting in the reasonable exercise ofllis/her discretion. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 19.4,20, and 25. 19.5. No payment, partial payment, acceptance, or pmiial acceptance by CITY will operate as a waiver on the pali of CITY of any of its rights under this Agreement. SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by celiified mail, addressed as follows: To CITY: Office of the City Clerk City of Palo Alto Post Office Box 10250 6 Contract No. C13149369 Professional Services Rev. Nov. 1,2011 Palo Alto, CA 94303 With a copy to the Purchasing Manager To CONSULTANT: Attention of the project director at the address of CONSULTANT recited above SECTION 21. CONFLICT OF INTEREST. 21.1. In accepting this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct 01' indirect, financial 01' othelwise, which would conflict in any manner 01' degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the pelfOimance of this Agreement, it will not employ subconsultants, contractors or persons having such an interest. CONSULTANT celiifies that no person who has 01' will have any financial interest under tlus Agreement is an officer 01' employee of CITY; this provision will be intel]Jreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California. 21.3. If the Project Manager determines that CONSULTANT is a "Consultant" as that term is defined by the Regulations of the Fair Political Practices Commission, CONSULTANT shall be required and agrees to file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act. SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.51 0, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestly, sexual orientation, housing status, marital status, familial status, weight 01' height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pel1aining to nondiscrimination in employment. SECTION 23. ENVIRONMENT ALL Y PREFERRED PURCHASING AND ZERO WASTE REOUIREMENTS. CONSULTANT shall comply with the City's Environmentally Preferred Purchasing policies which are available at the City's Purchasing Department, incorporated by reference and may be amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of the City's Zero Waste Program. Zero Waste best practices include first minimizing and reducing waste; second, reusing waste and third, recycling or composting waste. In pal1icular, Consultant shall comply with the following zero waste requirements: • All printed materials provided by Consultant to City generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, rep0l1s, and public education materials, shall be double-sided and printed on a minimum of30% 01' greater post-consumer content paper, unless othelwise approved 7 Contract No. C13149369 Professional Services Rev. Nov. I, 201l by the City's Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of30% or greater post-consumer material and printed with vegetable based inks. • Goods purchased by Consultant on behalf of the City shall be purchased in accordance with the City's Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy ofthis policy is on file at the Purchasing Office. • Reusable/returnable pallets shall be taken back by the Consultant, at no additional cost to the City, for reuse or recycling. Consultant shall provide documentation from the facility accepting the pallets to verifY that pallets are not being disposed. SECTION 24. NON-APPROPRIATION 24.1. This Agreement is subject to the fiscal provisions ofthe Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion ofthe fiscal year and funds for this Agreement are no longer available. This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 25. MISCELLANEOUS PROVISIONS. 25.1. This Agreement will be governed by the laws of the State of California. 25.2. In the event that an action is brought, the patties agree that trial of such action will be vested exclusively in the state COutts of California in the County of Santa Clara, State of California. 25.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys' fees expended in connection with that action. The prevailing patty shall be entitled to recover an amount equal to the fail' market value of legal services provided by attorneys employed by it as well as any attorneys' fees paid to third patties. 25.4. Tllis document represents the entire and integrated agreement between the patties and supersedes all prior negotiations, representations, and contracts, either written or oral. This document may be amended only by a written insttument, which is signed by the parties. 25.5. The covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators, assignees, and consultants ofthe parties. 25.6. If a court of competent jurisdiction finds or tules that any provision of this Agreement 01' any amendment thereto is void or unenforceable, the unaffected provisions of this Agreement and any amendments thereto will remain in full force and effect. 8 Contract No. C13149369 Professional Services Rev. Nov. 1,2011 25.7. All exhibits refel1'ed to in this Agreement and any addenda, appendices, attachments, and schedules to this Agreement which, from time to time, may be referred to in any duly executed amendment hereto are by such reference incorporated in this Agreement and will be deemed to be a patt of this Agreement. 25.8 If, pursuant to this contract with CONSULTANT, City shares with CONSULTANT personal infOimation as defmed in Califomia Civil Code section 1798.81.5( d) about a Califomia resident ("Personal Information"), CONSULTANT shall maintain reasonable and appropriate security procedures to protect that Personal Information, and shall inform City immediately upon learning that there has been a breach in the security of the system or in the security of the Personal Information. CONSULT ANT shall not use Personal Information for direct mat'keting purposes without City's express written consent. 25.9 All unchecked boxes do not apply to this agreement. 25.10 The individuals executing this Agreement represent and wan'ant that they have the legal capacity and authority to do so on behalf of their respective legal entities. 25.11 This Agreement may be signed in multiple counterpatts, which shall, when executed by all the patties, constitute a single binding agreement 9 Contract No. C13149369 ProFessional Services Rev. Nov. 1,2011 IN WITNESS WHEREOF, the palties hereto have by their duly authorized representatives executed this Agreement on the date first above written. CITY OF PALO ALTO TRB & ASSOCIATES, INC. City Manager BY: __ Z"/"~===S'----"'-~- Name: Doo MII!1rr APPROVED AS TO FORM: Senior Asst. City Attorney Attachments: EXHIBIT "A": EXHIBIT "A-I" EXHIBIT "B": EXHIBIT "C": EXHIBIT "C-I": EXHIBIT "D": SCOPE OF WORK ON CALL TASK ORDER SCHEDULE OF PERFORMANCE COMPENSATION SCHEDULE OF RATES INSURANCE REQUIREMENTS 10 Contract No. C13149369 Professiomd Services Rev, Nov. 1,2011 EXHIBIT A SCOPE OF SERVICES CONSULTANT shall provide professional services consisting of Building Plan Check services on an as-needed (on-call) basis. Building Plan Check Services CONSULTANT shall be responsible for providing building plan check services as requested by the City on an as needed"basis. Plan check services shall be provided either by supplying staffto work on site at the City's Development Center under the direction of the Chief Building Official or by performing plan reviews off site at CONSULTANT'S office when plans are transmitted to CONSULTANT by the City. The manner in which plan check services will be perfOimed shall be determined by the City's Chief Building Official. When requested to provide plan check services, CONSULTANT shall be expected to perform the following services: 1. Preliminaty plan review consultations in CONSULTANT'S office or by telephone/e-mail. 2. Initial plan review of project plans and other related documents submitted in conjunction with applications for Building Permits to determine compliance with the adopted unifotm codes, applicable laws, regulations and local ordinances. The services shall include, but not be limited to, review ofthe following, as applicable to each project: Architectural, Structural, Civil, Electrical, Mechanical and Plumbing plans, structural calculations, accessibility compliance, fire and life safety components, geotechnical reports, Green Building and Energy Code compliance documentation and deferred submittal items. 3. Provide the applicant's designee and the City, a typed list of items needing clarification or change to achieve conformance with the above regulations. 4. Maintain sufficient communication with the applicant's designee(s), either by telephone/e- mail, mail or meeting in CONSULTANT'S office and perfOim all necessalY plan rechecks to achieve confOimance to the regulations. 5. Provide recommendations and acts as liaison to the Chief Building Official, or his designee, either by maiVe-mail, telephone or in CONSULTANT'S office, to ensure compliance with Palo Alto's Municipal Code requirements. 6. Perform plan reviews of revisions to plans that have previously been approved for permit issuance, or perform plan reviews of changes to plans prior to such approval. 12 Contract No. Cl3149369 Professional Senrices Rev. Nov. 1,2011 7. Attend meetings related to proposed building projects at the request of the Chief Building Official at locations other than CONSULTANT'S office. 8. Provide City with periodic plan review status reports for all projects assigned by the Chief Building Official. When requested to furnish staff, CONSULTANT shall provide resumes (including licenses and other credentials) of all candidates who shall be available to perform Building Plan Check services. The City retains the right to select or reject any or all candidates based on a review of resumes and/or subsequent interviews. 13 Contract No. C13149369 Professional Services Rev. Nov. 1,2011 EXHIBIT "A-I" PROFESSIONAL SERVICES TASK ORDER Consultant hereby agrees to perfOlm the work detailed below in accordance with all the tenns and conditions of the Agreement referenced in Item lA below. All exhibits referenced in Item 8 are incorporated into the Agreement by this reference. The Consultant shall furnish the necessary facilities, professional, teclmical and supporting personnel required by this Task Order as described below. CONTRACT NO. Purchase Requisition No. MASTER AGREEMENT NUMBER TASK ORDER NO. CONSULTANT ISSUE DATE lAo lB. 2. 3. PERIOD OF PERFORMANCE: START: COMPLETION: 4 TOTAL TASK ORDER PRICE: $ BALANCE REMAINING IN MAS'...TE=R-A'-G--RE-=E"'ME-=NT-=-:$~ ___________ ~ 5. BUDGET CODE: ~ ____ ~ COST CENTER COST ELEMENT WBS/CIP PHASE 6. 7. CITY PROJECT MANAGER'S NAMEIDEPARTMENT ~--- DESCRIPTION OF SCOPE OF SERVICES MUST INCLUDE: • WORK TO BE PERFORMED • SCHEDULE OF WORK • BASIS FOR PAYMENT & FEE SCHEDULE • DELIVERABLES • REIMBURSABLES (with "not to exceed" cost) 8. ATTACHMENTS: A: Scope of Services B: _____________ _ I hereby authorize tlte performance of the work described above in tltis Task Order. APPROVED: CITY OF PALO ALTO BY: ----------------------Name ____________ _ Title _____________ _ Date _____________ ~ 14 I Itereby aclrnowledge receipt and acceptance of this Task Order and warrant tltat I have authority to sign on bcltalf of Consultant. APPROVED: COMPANY NAME: _______ _ BY: ____________ ___ Name _____________ _ Title. _____________ _ Da!e ______________ _ Professional Services Rev. No\', 1,2011 Contract No. C13149369 EXHIBIT "B" SCHEDULE OF PERFORMANCE (Not Applicable) l6 Contract No. C 13149369 Professional Services Rev. Nov, 1,2011 EXHIBIT "C" COMPENSATION The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement based on the hourly rate schedule attached as Exhibit C-l. The compensation to be paid to CONSULTANT under this Agreement for all services described in Exhibit "A" ("Services") and reimbursable expenses shall not exceed $50,000.00. CONSULT ANT agrees to complete all Services, including reimbursable expenses, within this amount. In the event CITY authorizes any Additional Services, the maximum compensation shall not exceed $50,000.00. Any work perfOlmed or expenses incUll'ed for which payment would result in a total exceeding the maximum amount of compensation set fOlth herein shall be at no cost to the CITY. REIMBURSABLE EXPENSES The administrative, overhead, secretarial time 01' secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinalY business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are: A. Travel outside the San Francisco Bay area, including transportation and meals, will be reimbursed at actual cost subject to the City of Palo Alto's policy for reimbursement of travel and meal expenses for City of Palo Alto employees. B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges are reimbursable at actual cost. All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense anticipated to be more than $0.00 shall be approved in advance by the CITY's project manager. ADDITIONAL SERVICES The CONSULT ANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY's project manager's request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effOlt, and CONSULTANT's proposed maximum compensation, including reimbursable expenses, for such services based on the rates set fOlth in Exhibit C-l. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY's Project Manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement. 17 Contract No. C13149369 Professional Services Rev. Nov. 1,2011 18 Contract No. C 13149369 Professional Services Rev. Nov. 1,2011 Building Plan Review EXHIBIT "C-l" HOURLY RATE SCHEDULE Our plan review fees may be calculated as a percentage of the Building Plan Review Fee collected by the City. The fee compens~tion shoWn covers three total plan review cycles -the Initial plan review and up to two rechecks. Any further review cycles which become necessary and reviews of revisions to approved plans would be billed based upon a negotiated hourly rate. Please note that the fee for providing expedited plan review would be negotiated prior to commencement of the review. Complete Review Project Valuation Structural Only (Structural, Life Review Safety, EIM/P, Green, Tltle 24 Energy) Up to $3 million 45% 68% Greater than $3 million 40% 63% Expedited Projects As negotiated As negotiated Please note that the pickup, shipment, and delivery of plan documents and other relevant correspondence to aaencies Is Included in the above-noted cost. 18 Contmcl No. CI3149369 Professional Services Rev Nov. 1,2011 Schedule of HOllrly Rate,s and Relmbursables TRB+ provides selVlces on an hourly basis as noted in the hourly rate and'reimbursable schedule included below: Position Principal/ Project Manager Building Official • Senior Plan Review Engineer/Architect Senior Plans Examiner Plan Review Engineer/Architect Plans Examiner' Permit Technician Clerical/Admin CASp Certified Inspector SupelVlslng Inspector Senior Inspector Inspector $135.00 $130.00 $125.00 $120.00 $110.00 $ 95.00 $ 60.00 $ 45.00 $135.00 $ 90.00 $ 80.00 $ 70.00 • Overtime will be billed at the rates shown above plus an additional 25 percent (Note that no overtime will be charged without client authorization) • Reimbursement for direct expenses, Incurred in connection with the work, will be at cost ptus fifteen (15) percent. • Reimbursement for employee-owned vehicles used in connection with the work will be at the rate of $0.60 per mile. • Other In-house charges for prints, reproductions and equipment use, etc. will be at standard company rates. 19 Contract No. C13149369 Professional Services Rev Nov, 1,2011 20 Contract No. C13149369 Professional Sen'ices Rev Nov. 1,2011 EXIllBIT "D" INSURANCE REQUIREMENTS CONTRACTORS TO TIlE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR TIlE TERM OF TIlE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR TIlE COVERAGE SPECIFIED BELOW, AFFORDED DY COMPANIES WITHAM BEST'S KEY RATING OF A-:VII, OR IDGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE DUSINESS IN TIlE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY'S INSURANCE REQUIREMENTS AS SPECIFIED BELOW , : MINIMUH LHHTS REQUIRED TYPE OF COVERAGE REQUIREMENT EACH YES YES YES YES YES YES OCCURRENCE AGGREGATE WORKER'S COMPENSATION STATUTORY EMPLOYER'S LIABILITY STATUTORY BODILY INJURY SI,OOO,OOO $1,000,000 GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE $1,000,000 $1,000,000 PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL BODILY INJURY & PROPERTY DAMAGE $1,000,000 $1,000,000 LIABILITY COMBINED. BODILY INJURY $1,000,000 $1,000,000 -EACH PERSON $1,000,000 $1,000,000 -EACH OCCURRENCE $1,000,000 $1,000,000 AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED PROPERTY DAMAGE $1,000,000 $1,000,000 BODILY INJURY AND PROPERTY $1,000,000 $1,000,000 DAMAGE, COMBINED PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT TIIROUGHOUTTIIE ENTIRE TERM OF ANY RESULT ANT AGREEMENT, TIlE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SunCONSULTANTS, IF ANY, BUT ALSO, MTH THE EXCEPTION OF WORKERS' COMPENSATION, EMPLOYER'S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES, l. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY (30) DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR'S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTffiLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY'S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO "ADDITIONAL INSUREDS" A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRffiUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. 21 Contract No. C13149369 Professional Services ReyNo\'. 1,2011 B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION l. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITIEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. NOTICES SHALL BE MAILED TO: PURCHASING AND CONTRACT ADMINISTRATION CITY OF PALO ALTO P.O. BOX 10250 PALO ALTO, CA 94303 22 Contract No. C13149369 Professional Services Rev No\'. I, 2011 City of Palo Alto (ID # 3642) City Council Staff Report Report Type: Consent Calendar Meeting Date: 4/15/2013 City of Palo Alto Page 1 Summary Title: BID Preliminary Re-Authorization Title: Preliminary Approval of the Report of the Advisory Board for Fiscal Year 2012 in Connection with the Palo Alto Downtown Business Improvement District and Adoption of Resolution Declaring its Intention to Levy an Assessment Against Businesses within the Downtown Palo Alto Business Improvement District for Fiscal Year 2014 and Setting a Time and Place for a Public Hearing on May 6, at 7:00 PM or Thereafter, in the City Council Chambers From: City Manager Lead Department: City Manager Recommendation Staff recommends the following motion: that City Council: (a) Preliminarily approve the Business Improvement District (BID) Advisory Board’s 2014 Budget Report for the BID (Attachment 1) and; (b) Adopt a Resolution of Intention to Levy Assessments in the Palo Alto Downtown Business Improvement District for Fiscal Year 2014, setting a date and time for the public hearing on the levy of the proposed assessments for May 6, 2013, at 7:00 PM, or thereafter, in the City Council Chambers (Attachment 3) Executive Summary This Council action includes a preliminary approval of the BID Board’s annual report, and sets a time and place for a public hearing for the staff presentation, and to determine any objections to the assessments. Since the BID inception in 2004, a number of activities consistent with State BID law have been accomplished by the Palo Alto Downtown Business and Professional Association (PADBPA), the entity with which the City contracts to provide services to the 800+ businesses assessed in the Downtown. These include addressing the three main City of Palo Alto Page 2 issues facing downtown businesses: cleanliness, safety, and attractiveness, as well as participation in zoning and other matters affecting downtown businesses. Assessments for BID businesses are based on the size, type and location of the business. Assessments range from $50 for individually owned professional businesses to $500 annually for financial institutions. The PADBPA has monthly open meetings governed by the Ralph M. Brown Act which any business or individual can attend. Background The Palo Alto Downtown Business Improvement District (BID) was established by the City Council in 2004 pursuant to the California Parking and Business Improvement Area Law to promote the economic revitalization and physical maintenance of the Palo Alto Downtown business district. The Council appointed the Board of Directors of the Palo Alto Downtown Business and Professional Association (PADBPA), a non-profit corporation, as the Advisory Board for the BID. The Board’s purpose is to advise the Council on the method and basis for levy of assessments in the BID and the expenditure of revenues derived from the assessments. Pursuant to BID law, the Advisory Board must annually submit to the Council a report that proposes a budget for the upcoming Fiscal Year for the BID. The report must: 1) propose any boundary changes in the BID; 2) list the improvements and activities to be provided in the Fiscal Year; 3) estimate the cost to provide the improvements and activities; 4) set forth the method and basis for levy of assessments; 5) identify surplus or deficit revenues carried over from the prior Fiscal Year; and 6) identify amounts of contributions from sources other than assessments. The Council must then: 1) review the report and preliminarily approve it as proposed or as changed by the Council; 2) adopt a resolution of intention to levy the assessments for the upcoming Fiscal Year; and 3) set a date and time for the public hearing on the levy of assessments in the BID. Absent a majority protest at the public hearing on May 6, 2013, at the conclusion of the public hearing, the Council may adopt a resolution confirming the report for Fiscal Year 2014 as filed or as modified by the Council. The adoption of the resolution constitutes the levying of the BID assessments for Fiscal Year 2014. Discussion The Advisory Board has prepared a report (Attachment 1) for the Council’s consideration which includes the proposed budget for the Palo Alto Downtown BID for Fiscal Year 2014. As required by BID law, the report has been filed with the City Clerk City of Palo Alto Page 3 and contains a list of the improvements, activities, and associated costs proposed in the BID for Fiscal Year 2014. The Advisory Board has recommended no change in the BID boundaries or the method and basis for levying assessments. A map of the BID is attached (Attachment 2). The proposed assessments in the BID for Fiscal Year 2014 are the same as the assessments in Fiscal Year 2013. No increases are proposed. The budget report for Fiscal Year 2014 was reviewed and approved by the Palo Alto Downtown Business and Professional Association board on April 1, 2013. Resource Impact Adoption of the proposed BID budget does not directly impact City revenue. BID assessments are restricted for use exclusively by the BID. It is anticipated that a healthy BID will encourage vitality in the retail community and consequently result in additional sales tax revenue for the City. Some staff effort is expended annually to administer the collection of the BID. Staff will continue to monitor staff administrative time devoted to the collection of BID assessments to assure that City costs do not exceed estimates for these services. The cost and collection of BID assessments past 60 days is borne by the BID. The Attorney's Office will continue to provide legal oversight to the BID during the annual reauthorization process. Administrative Services staff provides assistance in the collection of BID assessments. The Economic Development Manager will continue to provide oversight to the BID and will prepare the annual reauthorization. Environmental Review This action by the City Council does not meet the definition of a project under Section 21065 of the California Environmental Quality Act, and therefore no environmental assessment is necessary. Attachments: BID Annual Report FY 2014 (DOCX) RESO Declaring Intention to Levy BID FY14 (PDF) Palo Alto Downtown Business Improvement District 2013-14 Annual Report Prepared for: Palo Alto City Council Prepared by: Russ Cohen, Executive Director, Palo Alto Downtown Business and Professional Association Start here. Introduction This report from the Advisory Board of the Palo Alto Downtown Business & Professional Association (“PAd”) was prepared for City Council to review for the annual reauthorization of the Downtown Palo Alto Business Improvement District (“BID”) pursuant to Section 36533 of the Parking and Business Improvement Law of 1989 (Section 36500 and following of the California Streets and Highways code) (the “Law”). This report is for the proposed fiscal year for the BID commencing July 1, 2013 and ending June 30, 2014. (“Fiscal Year 2013-14”). As required by the Law, this report contains the following information: I. Any proposed changes in BID boundaries and benefit zones within the BID; II. The improvements and activities to be provided for Fiscal Year 2013-14; III. An estimate of the cost of providing the improvements and the activities for Fiscal Year 2013-14; IV. The method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for Fiscal Year 2013-14. V. The amount of any surplus or deficit revenues to be carried over from a previous fiscal year. VI. The amount of any contributions to be made from sources other than assessments levied pursuant to the Law. Submitted by Anne E. Senti-Willis, Chair, and Russell S. Cohen, Executive Director on behalf of the Advisory Board (“Advisory Board”) of the Palo Alto Downtown Business & Professional Association (“PAd”). The Advisory Board approved this report on April 1, 2013. Received on file in the Office of the City Clerk of the City of Palo Alto on April 10, 2013. Section I: BID boundaries and Benefit Zones There have been no changes in the BID boundaries or benefit zones within the BID and no changes are proposed. The current boundaries are depicted on the map below. The area of the BID is referred to as “Downtown.” ~~"lr-~~;;;-l"~P~':IO~A:':'O~D:O:':'O:'O:W::O--lr~~~~=l ~ Business Improvement ,,, "" ., District P a lo Alto ---- Who and what are downtown Palo Alto? The following charts illustrate the current makeup of Downtown Palo Alto by business category. Methodology: Ratio estimates based on one time data collection through quick probability samplings considered a “windshield survey.” Margin of error is 15%. Businesses in downtown Palo Alto 2013 Restaurants = 88 Retail = 72 High tech = 109 Real Estate = 30 Finance = 84 Medical = 79 Other= 230 Restaurants Independenty owned=75 Chain or franchise=13 Total=88 Retail Independently owned=51 Chain or franchise=21 Total = 72 Restaurant vs. Retail Retaurant = 88 Retail = 72 Total independent vs Chain ( both rest. & retail combined ) Independent = 126 Chain = 34 Summary of findings based on the above charts: These data illustrate reality rather than perception. Many perceive that there is a preponderance of restaurants vs. retail, but in reality the mix is quite balanced. Also true for the number of chains vs. the number of independently owned businesses—it’s clear that there is much more in the way of independently owned businesses than chain or franchised businesses—thus breaking the commonly held perception of Downtown being dominated by chains and restaurants. New vs Closed New = 58 Closed = 13 Section II: 2012-13 Year in Review and Planned Activites for Fiscal Year 2013-2014 “Keeping Downtown Palo Alto Safe, Spotless and Successful.” PROJECT STATUS EXPECTED COMPLETION Beautification and Safety Cogswell Park rehabilitation Worked with the City to initiate the rehabilitation project and provided input on design. Grand re- opening was December 12, 2012. Complete Dec-12 University Ave. Tunnel rehabilitation Worked with the City to initiate new paint, water proof sealing and cleaning along with some new signage to brighten and provide a more welcoming entrance to Downtown. Complete Dec-12 Cogswell Park wi-fi hot spot Contributed funds to pilot free wi-fi hot spot program at Cogswell Park; assisted TopCorner.org with fundraising. [insert completion date] No Amplified Music Ordinance for Lytton Plaza and Cogswell Park In response to PAd member complaints, worked with the City to draft language and provide outreach to Downtown community. Ordinance is now in effect. Complete Jan-13 Operation Flagpole: an initiative to decorate University Ave with flags for special occasions Holes being installed as part of the University Ave landscaping improvements. Pricing for flags and poles under way along with solicitation of service clubs to install and remove flags on holidays. May-13 University Avenue landscape and irrigation rehabilitation Working with the city of Palo Alto on outreach to business community to add awareness and address concerns on scheduled improvements. Began the first of 9 phases of 1-2 weeks each on Feb 7. Apr-13 Public Art: Aurora installation at King Plaza PAd has worked with the Pal Alto Arts Commission to move this installation to King Plaza. Fundraising, website and print material distribution underway involving, among others, the Black Rock Art Foundation. Spring 13 Monthly sidewalk cleaning Worked with the City to increase frequency and improve equipment used for sidewalk cleaning. Ongoing Seasonal lamp post banner design In development as a pilot program with the expectation of expanding the program to include a greater variety of banners and more frequent replacement. Additional funding will come from private public partnerships. Spring 13 Public Art: Downtown Mural Project Program under development with Palo Alto Public Arts Commission and Downtown property owners to bring murals to Downtown buildings and other locations. Ongoing Lytton Plaza umbrellas To make Lytton Plaza more welcoming, umbrellas have been proposed to be added to outdoor seating. Downtown Streets Team has agreed to set up and dismantle umbrellas on weekdays. Outreach is beginning for storage and potential funding. Spring 13 Downtown Ambassador Program PAd continues to explore sponsorship of “ambassadors” with the Downtown Streets Team, with individuals who would be able to provide information regarding Downtown and direction to visitors. Ongoing Downtown gateway feature Development of feature to mark entrances to Downtown being considered Ongoing Camera installation in garages Working with PA Chamber of Commerce BAPPF to support program to increase safety in parking garages through installation and monitoring of security cameras. Currently involved with sourcing vendors, obtaining prices and suggesting placement locations. Ongoing Sleeping in Vehicles subcommittee Served on the committee to develop a pilot program with the faith community to address this issue Ongoing No smoking ordinance for Lytton Plaza and Cogswell Park Suggested new ordinance to City staff as a result of PAd member complaints. PAd has drafted a letter in support of current Policy & Services Committee consideration and have encouraged further business community support. Apr-13 Administration Yearly audit Annual required financial statement audit and tax return completed by independent accounting firm. Complete Feb-13 Annual database update Annual census of new and departed businesses within Downtown complete and provided to the City for annual BID assessment invoicing. Complete Feb-13 Annual invoices Separate communications from PAd added to all City invoices, including separate welcome letter for new businesses. Ongoing Membership Communications and programming Palo Alto Downtown Business and Professional Association re- branding Re-branding began in fiscal year 2012-2013 to increase visibility to members within Downtown and to create a recognizable brand to Downtown visitors. Logo redesign and initial implementation were completed in October 2012. Complete Oct-12 “Made in Downtown Palo Alto” Rewards Card Launched in partnership with FiveStars, Inc. in late 2012. Currently, over [20] Downtown businesses are participating Ongoing Downtown Palo Alto Walking Maps Update of merchants and locations is complete; contents have been proofed. Publication should be complete in March 2013 March - 13 “Made in Downtown Palo Alto” Magazine Magazine devoted to Downtown businesses under development. Partial issue was released during the Palo Alto Institute Film Festival in October 2012, but full issue remains to be released. When complete, it will be available for free distribution at Downtown businesses. Ongoing Outdoor dining In conjunction with the City, PAd hosted a meeting on March 18 with Downtown restaurant owners to provide information regarding encroachment permit requirements for outdoor dining. Efforts to facilitate compliance with City ordinances will be ongoing. Summer 13 Media Coverage The past fiscal year has seen at least 15 articles, citations, listings or other references in media outlets. Ongoing Facebook presence Photos, posts and calendar items are all included in facebook content. The facebook presence also provides “friends” with updates on new and departing businesses as well as events and activities in the Downtown Ongoing Twitter Account launched Jan 13 Ongoing Events Holiday Tree Lighting 2012 tree lighting occurred on November 30. The Ongoing 2013 lighting is currently scheduled for December 6. World Music Day PAd is involved with this annual Father’s Day event through assistance with securing insurance for the event and providing outreach to the Downtown business community regarding street closures and ways to participate in the event. June 13 “The Downtown Crown” At the grand opening of each new Downtown business, PAd welcomes the business to the district by presenting a crown. Three new crowns were presented during the year ended June 30, 2012 and more will be presented in the coming year. Ongoing Breakfast Roundtable The 2012 breakfast roundtable was entitled, “Let the brainiacs of Silicon Valley improve your downtown business” and featured three local startups, Euclid Elements, FiveStars loyalty and Google interior mapping. The 2013 roundtable will focus on helping Downtown businesses grow. Complete and Ongoing Downtown Parking Committee PAd is actively involved in ensuring the Downtown parking assessment district is running effectively. It engaged in considerable outreach with Downtown neighbors regarding impacts including the development of a pilot RPP program. PAd continues to be involved with ongoing Downtown parking studies, working with City staff and working on outreach to Downtown business and property owners. Complete and Ongoing Concert Series sponsorship PAd is currently building relationships and seeking underwriters to resume outdoor concerts Downtown. Ongoing Event outreach PAd provides continuous member outreach regarding street closures, special events, construction impacts, transportation studies, traffic disruptions and more. Ongoing 1 Section III. Budget for 2013-14 The total funds available for activities for this fiscal year are estimated to be [$189,400]. The budget for providing the activities is set forth as follows: BID 2013/14 Budget INCOME Total Non-Assessment Sources Assessments $155,000 Allowance for Uncollectible Assessments ($34,000) Other Revenue $32,400 $32,400 12-13 Surplus Carryover $20,000 TOTAL INCOME $173,400 $32,400 EXPENSES Operating Expenses Staff Salaries Executive Director Salary & Benefits $66,000 Payroll taxes and expense $6,600 Office Supplies & Expenses $250 Internet/Website Maintenance $500 Telephone $900 Rent $3,120 Reauthorization Advertising $2,000 Audit-Tax Returns $5,700 Legal $1,000 $1,000 Insurance - Liability $1,800 Workman's Comp $1,000 Nominating $1,500 Contingencies $2,000 Subtotal -- Operating Expenses $92,370 $1,000 Programs, Marketing and Events Banners $24,000 $24,000 Breakfast Roundtables $5,700 $4,100 Events $3,500 $3,300 Member Outreach & Communication $250 Downtown Streets Team $5,000 District Improvement $42,580 Subtotal --Programs, Marketing & Events $81,030 $31,400 TOTAL EXPENSES $173,400 $32,400 2 Section IV: Method and Basis of Levying the Assessment Cost Benefit Analysis / Bid Assessments The method and basis of levying the assessment is provided in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for Fiscal Year 2013-14 and is not changed from the FY 2012-13 assessment. There have been no changes made to the Cost-Benefit Analysis or to the BID Assessments since they were approved by City Council on February 2, 2004. The method of calculation used to determine the cost and benefit to each business located in the BID is described below. The BID assessments are based on three criteria: the type of business, the location of the business and the size of the business. It has been consistently demonstrated that the typical BID program places a higher priority on activities such as commercial marketing. As a result, the retail and restaurant establishments in the BID are assessed more than service and professional businesses in the district. While service-oriented businesses benefit from a BID less than retailers and restaurateurs, they benefit more than professional businesses such as medical, dental, architectural, consultant and legal offices with their minimal advertising and promotion needs. For these reasons, various business types are assessed according to the benefit that they receive from the BID, as follows: Retail and Restaurant 100% of base amount Service 75% of base amount Professional 50% of base amount Exceptions to this rule include financial institutions that are traditionally charged a flat rate regardless of location or size and lodging businesses that are typically charged by total rooms. The location of a business also determines the degree of benefit that accrues to that business. Centrally located businesses tend to benefit more, as do businesses located on the ground floor. For this reason, A and B benefit zones have been identified for the BID. In Palo Alto, Zone A benefit businesses are assessed 100% of the base benefit assessment while Zone B businesses are assessed 75%. A third criterion is used in the BID to determine benefit. This criterion, the size of the business, takes into consideration the number of full time employees employed by the business. Please refer to Attachment 1 for a more complete understanding of the application of these three variables to establish BID benefit. Attachment 2 is the BID assessment for each business located within the BID boundaries. Applying the criteria identified in Attachment 1, a summary of the assessment that applies to each business by size, 3 type and location is outlined. In addition to the Cost-Benefit Analysis, the assessments include the following criteria: An exemption for “single person professional businesses” that have 25% or fewer full time equivalent (“FTE”), including the business owner. This covers employees who work less than 10 hours a week (based on a 40 hour work week; an FTE equals approximately 2000 hours annually) An assessment specifically for “single person businesses” that have 26% FTE to 1 FTE in the professional business category of the BID (An FTE equals approximately 2000 hours annually) The tiering of other professional businesses by size based (according to benefit) on the “single person business” criteria This outline provides information by which a business can determine its annual assessment based on objective criteria. Except where otherwise defined, all terms shall have the meanings identified below: Definitions of Business Types in the Downtown Business Improvement District Retailers and Restaurants: Businesses that buy or resell goods such as clothing stores, shoe stores, office supplies as well as businesses that sell prepared food and drink. Service Businesses: Businesses that sell services such as beauty or barber shops, repair shops, most automotive businesses, dry cleaners, art and dance studios, printing firms, film processing companies, travel agencies, entertainment businesses such as theatres, etc. Hotel and Lodging: These include businesses that have as their main business the lodging of customers. This is restricted to residential businesses that provide lodging services to customers for less than 30 days. Professional Businesses: Businesses that require advanced and/or specialized licenses or academic degrees such as architects, engineers, attorneys, chiropractors, dentists, doctors, accountants, optometrists, realtors, insurance brokers, venture capital firms, consultants, advertising and marketing professionals and mortgage brokers and similar professions. Financial Institutions: Includes banking, savings and loan institutions and credit unions. Additional clarification on business definitions will be defined according to Section 18.04.030 (Definitions) of the Palo Alto Municipal Code. The Advisory Board recommends that the following businesses be exempt from the BID assessment: New businesses established in the BID area following the annual assessment for the year in which they locate in the BID area Non-profit organizations Newspapers “Single person professional businesses” that have 25% or less FTE, including the business owner 4 The Assessment calculated shall be paid to the City no later 30 days after receipt of the invoice with the amount of the annual assessment sent by the City. A second notice will be mailed as a reminder to businesses that have not remitted payment by that date. Late payment will be subject to a 10% late fee. Section V: Revenue Surplus or Deficit Based on the revenue balance on 12/31/12 of $72,046, the PAd expects a surplus carryover of $20,000. Expected expenses for the remainder of FY 12-13 are as follows: Current Revenue Balance $72,046 Expected expenses for remaining FYE6/30/2013 Staff Salaries $25,000 Elections & Annual Report $3,500 Office & Operating Expenses $10,746 Outside Audit $4,000 Reauthorization Advertising $2,500 Downtown Streets Team $5,000 Rent $1,300 Total Expected Expense $51,300 Expected Carryover $20,000 Section VI: Non-assessment Income It is estimated that $32,400.00 will be raised in fundraising, and sponsor support. Additionally, anticipate in kind contribution towards expenses for Fiscal Year 2013-14. Projected Income for Fiscal Year 2013-14 Roundtable Breakfasts (donation) $4,100 Legal (donation) $1,000 Banners $24,000 Events $3,300 Total $32,400 5 Section VI: PAd Board of Directors by Business Type Retailers and Restaurants Alice Duetsher, Shady Lane Gifts Georgie Gleim, Gleim the Jeweler Cornelia Pendelton, University Art Claudia Cornejo, Café Venetia Service Businesses Robert Peterson, Peterson Architects Financial Institutions Deborah Pappas, Boston Private Bank & Trust Company Gayle Almeida-Haige, Boston Private Bank and Trust Company Professional Organizations Anne E. Senti-Willis, Thoits, Love, Hershberger & McLean Brad Ehikian, Premier Properties Patty McGuigan, Cornish & Carey Commercial Non Profit Organizations Chris Richardson, Downtown Streets Team LIAISONS Palo Alto Chamber of Commerce David MacKenzie, President & CEO Downtown Streets Team Eileen Richardson, Executive Director City Of Palo Alto Liz Kniss, Palo Alto City Council Thomas Fehrenbach, Manager of Economic Development 1 Attachment 1 ATTACHMENT 1 A General Statement Regarding Cost-Benefit Analysis For BID Businesses Using The Traditional Three Criteria Formula Criteria 1) Type of Business: Statement Concerning Cost-Benefit Formula For BID Businesses Regarding Type Of Business: In a review of 200 California Business Improvement Districts, it is consistently demonstrated that the typical BID Program places a higher priority on Commercial Marketing Programs than on Civic Beautification and Commercial Recruitment Programs. With that trend in mind, retail and restaurant businesses, with their emphasis on, and need for, commercial marketing, are traditionally assessed more than less marketing-sensitive service-oriented or professional-oriented businesses. However, while service-oriented businesses benefit from a BID less than retailers and restaurateurs, they benefit more, (from commercial marketing programs), than professional businesses such as medical, dental and legal offices with their minimal advertising and promotion needs. Therefore, set forth below, is an example of how various business types might be considered regarding the computation of the annual benefit assessment. • Retail and Restaurant: 100% of base amount • Service: 75% of base amount • Professional: 50% of base amount Exceptions to this rule include financial institutions that are traditionally charged a flat rate regardless of location or size and lodging businesses that are typically charged by total rooms. Lodging businesses are assessed based on the total number of rooms because it is a more equitable manner of determining size. Many lodging businesses have many part time employees, but revenues are based on the room occupancies of the hotel, not the goods sold or serviced provided by employees. Criteria 2) Location of Business: Statement Concerning Cost-Benefit Formula For BID Businesses Regarding Location of Business: It has also been consistently demonstrated that the more centrally located businesses tend to benefit from BID activities and services to a greater degree than businesses located toward the periphery of the proposed BID boundaries. Events and activities tend to originate in the central core of the Downtown area and spread benefit to the outer areas with diminishing energy and impact, much like the ripple effect of a stone tossed into a body of calm water. Furthermore, ground floor businesses tend to benefit to a greater degree than businesses located in upper floors. Therefore, in some cases, a new BID's annual benefit assessment formula also takes these street level criteria into account. As mentioned above, special events, fairs, festivals and other activities tend to take place within, or along, the Main Street core rather than in the areas at the periphery of the Downtown core. Additionally, BID-sponsored seasonal decorations, public art projects, street banners and street furniture tend to be located within the immediate core area. 2 Attachment 1 Therefore, businesses located within the most central area of the proposed BID are considered to be within "Zone A" which should be considered the primary benefit zone. There is typically a "secondary zone" or "Zone B" within most proposed BID areas. This area receives less benefit than Zone A and should be assessed accordingly. An example of how different zones might be treated regarding the computation of the annual benefit assessment is as follows. • Zone A: 100% of base benefit assessment • Zone B: 75% of base benefit assessment In the case of Downtown Palo Alto, it is recommended that all Zone A upper floor businesses, as well as any other businesses located at the periphery of the proposed BID, be considered as Zone B businesses. Please refer to the map in Attachment I. Criteria 3) Size of Business: Statement Concerning Cost-Benefit Formula For BID Businesses Regarding Size of Business: In approximately 50% of newly established BIDs, a third assessment criterion is used. This criterion involves the size of each individual business that is based upon the businesses’ total number of full-time employees. Full-time employees are those working a total of 2,000 hours per year. Part-time employees are grouped into full-time job positions, i.e., two half-time employees total one full-time. Fractions are rounded down to the nearest whole number with no less than one person as a minimum for business. An example of how various business sizes might be treated regarding the computation of the annual benefit assessment is as follows: Retail/Restaurants Service Businesses Small 50% of base amount Under 6 FTE* Under 4 FTE Medium 75% of base amount 6 to under 11 FTE 4 to under 7 FTE Large 100% of base amount 11 or more FTE 7 or more FTE * FTE = full time employees Additionally, an exemption was established for “single person professional businesses” that have 25% or less FTE, including the business owner. This covers employees who work less 10 hours a week (based on a 40 hour work week) Since “single person businesses” that have 26% FTE to 1 FTE in the professional business category of the BID benefit the very least from the assessment, their assessments have been tiered by size based (according to benefit) on the new “single person business” criteria. ATTACHMENT 2 Downtown Palo Alto Business Improvement District Annual BID Assessments ZONE A ZONE B (75% of Zone A amount) Restaurants & Retailers Under 6 FTE (50% of base amount) $225 $170 6 to under 11 FTE (75% of base amount) $340 $260 11 or more FTE (100% of base amount) $450 $340 Service Businesses Under 4 FTE (50% of base amount) $170 $130 4 to under 7 FTE (75% of base amount) $260 $200 Over 7 FTE (100% of base amount) $340 $260 Professional Businesses 25% or fewer FTE, including owner (0% of base amount) Exempt Exempt 26% FTE to under 1 FTE (25% of base amount) $60 $50 2 to 4 FTE (50% of base amount) $110 $90 5 to 9 FTE (75% of base amount) $170 $130 10+ FTE (100% of base amount) $225 $170 Lodging Businesses Up to 20 rooms (50% of base amount) $2258 $170 21 to 40 rooms (75% of base amount) $340 $260 41+ rooms (100% of base amount) $450 $340 Financial Institutions $500 $500 Note 1: For retail, restaurant, service, and professional businesses, size will be determined by number of employees either full-time or equivalent (FTE) made up of multiples of part-time employees. A full FTE equals approximately 2000 hours annually. Lodging facilities will be charged by number of rooms available and financial institutions will be charged a flat fee. Note 2: Second floor (and higher) businesses located within Zone A will be assessed the same as similar street-level businesses located within Zone B. Note 3: Assessment amounts are rounded to the nearest ten dollars. The minimum assessment will be $50.00. Not Yet Approved 120319 jb 0131058 1 Resolution No. _____ Resolution of the Council of the City of Palo Alto Declaring Its Intention to Levy an Assessment Against Businesses Within the Downtown Palo Alto Business Improvement District for Fiscal Year 2014 and Setting a Time and Place for May 6, 2013 at 7:00 PM or Thereafter, in the Council Chambers THE CITY COUNCIL OF THE CITY OF PALO ALTO DOES HEREBY FIND, DECLARE, AND ORDER AS FOLLOWS: SECTION 1. The Parking and Business Improvement Area Law of 1989 (the "Law"), California Streets and Highways Code Sections 36500 et seq., authorizes the City Council to levy an assessment against businesses within a parking and business improvement area which is in addition to any assessments, fees, charges, or taxes imposed in the City. SECTION 2. Pursuant to the Law, the City Council adopted Ordinance No. 4819 establishing the Downtown Palo Alto Business Improvement District (the "District") in the City of Palo Alto. SECTION 3. The City Council, by Resolution No. 8416, appointed the Board of Directors of the Palo Alto Downtown Business & Professional Association, a California nonprofit mutual benefit corporation, to serve as the Advisory Board for the District (the "Advisory Board"). SECTION 4. In accordance with Section 36533 of the law, the Advisory Board prepared and filed with the City Clerk a report entitled "Downtown Palo Alto Business Improvement District, Annual Report 2013‐2014" (the "Report”). The City Council hereby preliminarily approves the report. SECTION 5. The boundaries of the District are within the City limits of the City of Palo Alto (the "City") and encompass the greater downtown area of the City, generally extending from El Camino Real to the East, Webster Street to the West, Lytton Avenue to the North and Addison Avenue to the South (east of Emerson Street, the boundaries extend only to Forest Avenue to the South). Reference is hereby made to the map of the District attached hereto as Exhibit "A" and incorporated herein by reference for a complete description of the boundaries of the District. SECTION 6. The City Council hereby declares its intention, in addition to any assessments, fees, charges or taxes imposed by the City, to levy and collect an assessment against businesses within the District for fiscal year 2014 (July 1, 2013 to June 30, 2014). Such assessment is not proposed to increase from the assessment levied Not Yet Approved 120319 jb 0131058 2 and collected for the prior fiscal year. The method and basis of levying the assessment is set forth in Exhibit "B" attached hereto, and incorporated herein by reference. SECTION 7. The types of improvements to be funded by the levy of an assessment against businesses within the District are the acquisition, construction, installation or maintenance of any tangible property with an estimated useful life of five years or more. The types of activities to be funded by the levy of an assessment against businesses within the District are the promotion of public events which benefit businesses in the area and which take place on or in public places within the District; the furnishing of music in any public place in the District; and activities which benefit businesses located and operating in the District. SECTION 8. New businesses established in the District after the beginning of any fiscal year shall be exempt from the levy of the assessment for that fiscal year. In addition, non‐profit organizations, newspapers and professional "single‐person businesses," defined as those businesses which have 25% or less full time equivalent employees, including the business owner, shall be exempt from the assessment. SECTION 9. The City Council hereby fixes the time and place for a public hearing on the proposed levy of an assessment against businesses within the District for fiscal year 2013 as follows: TIME: 7:00 p.m. or soon thereafter DATE: Monday, May 6, 2013 PLACE: City Council Chambers 250 Hamilton Avenue Palo Alto, California 94301 At the public hearing, the testimony of all interested persons regarding the levy of an assessment against businesses within the District for fiscal year 2014 shall be heard. A protest may be made orally or in writing by any interested person. Any protest pertaining to the regularity or sufficiency of the proceedings must be in writing and shall clearly set forth the irregularity or defect to which the objection is made. Every written protest must be filed with the City Clerk at or before the time fixed for the public hearing. The City Council may waive any irregularity in the form or content of any written protest and at the public hearing may correct minor defects in the proceedings. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Not Yet Approved 120319 jb 0131058 3 Each written protest must contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the City as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business. A written protest which does not comply with the requirements set forth in this paragraph will not be counted in determining a majority protest (as defined below). If, at the conclusion of the public hearing, written protests are received from the owners of businesses in the District which will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent (i.e., there is a majority protest), no further proceedings to levy the proposed assessment, as contained in this resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the City Council. If the majority protest is only against the furnishing of a specified type or types of improvement or activity within the District, those types of improvements or activities shall be eliminated. SECTION 10. For a full and detailed description of the improvements and activities to be provided for fiscal year 2014, the boundaries of the District and the proposed assessments to be levied against the businesses within the District for fiscal year 2014, reference is hereby made to the Report of the Advisory Board. The Report is on file with the City Clerk and open to public inspection. SECTION 11. The City Clerk is hereby authorized and directed to provide notice of the public hearing in accordance with law. // // // // // // // // Not Yet Approved 120319 jb 0131058 4 SECTION 12. The Council finds that the adoption of this resolution does not meet the definition of a project under Section 21065 of the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: __________________________ _____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: __________________________ _____________________________ Senior Assistant City Attorney City Manager _____________________________ Director of Administrative Services _____________________________ Director of Planning and Community Environment 934 - 9 4 4 927 932 233 281 933 - 9 3 7 943 327 1001 94 2 469 475 74 4 459 832 801 A P T 1 - 5 427-453 920 912 362 370 900 838 846 471 459 835 - 8 5 5 460 81 5 840 836 834 845 400 803 928930 931 933 835 - 8 3 7 831 - 8 3 3 451453 802800 81 0 - 8 1 6 81 8 - 8 2 0 82 8 - 8 3 0 817 - 8 1 9 82 3 - 8 2 5 567-569 559563 536 526 100 1 101 1 - 540 483 904 912 468 918 926 537 965-971505-507 519-521 939-945 931-935 923-925 518-520 539541543 515-517 809 811 420 1001 1011 1010 376 370 980960 990 34 354 326 426 4 1000 448 944 471 483948952 959947925 915 933 935 425-443 451449 463-465 936-940 458 460 440 428 426 527-533 543 551 510520 558-560 903 825 837 581 575 940934 813-823 501-509 511-519 521-529 531-539 541-547 556 596 904 926 561-567 569 845 580 574 566 991- 997 136 610 116-122 150 535529525 542516140 102 116 124 163 145 566 556 167 528 643635 635 645- 685 660- 666 620 180 164 158156 624 628 632 636 640 644 617 621 151-165 171-195 203 642640 636 200 151 115 125 135 514 101 440 444 436432 427 425 117119 630616 208 228 220 240-248 575 530- 534 536 540 552 177 156 201 209 215 225 595 229231 611-623 180 508500 625-631 170 172-174 542 544 538- 542 552 548 546 541- 547 230-238 734 723 721 702- 730220-244 744 701 731 755757 771 200 160 728-732 762- 776740-746 250 275 270 255741 265 724 730 651 221-225 227 668 707 205 201 203 451449 209 219 221 233 235450 460 470 442 444 400 420 430 411 425 429 185 165 181 412 250 420 245 171-169 441- 445 435- 439 346344 333 335 342 344 431 460 450 235530 220 220B 222 240 514278 274 270 250 545 540 251485255 271 281 300 310 301 581 259-267 533535537 261 267 518-526 532- 536 520-526 530-536 271 281 252 270 240-248 202- 216 228226 234238 244 242 210- 216 228- 234 223- 229 209215 247-259 240 232230 311-317 251 344 326 340 337339 323 317 400 420 332 330 314 353 355 367 305 347 265272-278 418 319 321- 341 328 330 300- 310 431401 366 436 426#1-7 369 335 319 390 301 315 375 307- 311 325330 3321&23301-3 324 326316 318 373- 377 416- 424 361 338 340 560 345 321325 315 529 285 555 650636 6281-12 628A-E 385 365 375380 345 664 325650-654 661635300 690 675 555541-549533 535- 539 318-324 326 352 425 439-441 435429425 415-419 405403453 461 383460 502 510 526 520 540 499 467 459 439 425 555 400 436-452 456 379 370-374 376 380-382 384-396 550-552 364 360 431 440-444 423 499 475 421-423 431-433 432 428 460-476 450 635 446 430 400 745 720706 385744 734 724-730 720 712 704 360 351 315737 332 300 653 -681 683 685 512 501619 609605 518 482 486 496 610 630 455 400 651-687 543-545 532534 542544 550 552 554 556 558560562564 635-6 643-6 470 313 334 333 325326 342 303301 229 336 308 310 312 316 318 311 331 315 319 317 321 335 228220 356-360 347-367 351 357 369-379360 258- 296 350 210 204 302- 316 379310 320 328 332 340 437 412 311A-B 404 313 325 327 333 407 401385 411 452 378-390 360 - 1A - 1C360 - 2A - 2C360 - 3A - 3C360 - 4A - 4C360 - 5A - 5C360 - 6A 344-348 418420 482 328 456 321 325 330204 218 236 240 250- 252 477 475 467 457 453 249235225221 201 60 275 505-509 239- 243 209- 213 210- 214 513-519 460 474472228- 230 535 558 201 16 12 20 209 215 223 231 521 80 239-245 530-540 544-554 212- 216 218-222 333 335- 337 351 457451 465 463 489-499360 530 480 420 430 480 463 451443437411 405 419405401 441 480-498 347 351 355 359 525 430 473 332- 342 425415 400 570 568 556 550 543 327321315305 343 515 525 551 555 328 309-311 518-528 536-540 552-554 558-562 573 A-E 591-599 557-571 330-332 318-320 406-418 417 542 548568 524 550 500-528 578 564 550 546 540 530 531-535 541 505 525 537 555 565 571 530 619-6 520 440-446 579 567 523610 600 555 581 420-438 437 566 224 228A-F 244 579 575 565 559 251 355A-J 335329 604 576 566 345-347 243 245 25725920921922723502 505 610-616 727 678 676 674672 642 636-638 567 555 711 701705 725 525 759 730 718 734 738-740 760 746-750 701 721-7 600 827 835 899 850 530 609 759 751753 7 737-62611 601 600 1013 10041000 1006 1001 623 137 145 700 780 790 744 111700 753 100 825805 33 51 75 63 841 44 675 49 41 711 799 703 100 101 139654 625 160 1001 1005 1009 1010 1004 930 975 945929931 948 181 940 960 145900 955 999875 853 925 81 855 901-907 909 87 98 917 921 925 735 849 707 847 842828 820248 230-232 212 825 829 833 839 800 812 818 882 165831 801 815 809801 841 791153 718 774 761 795745 201 209 834 836 845 895 926 190 934 942 948 203 209 219 225 929200 240 904 910 926 270 935 904 909 909A 217 222 148 171 421 130 312 318 324 317 301 186 192 323 329 151 325 329 334 131 129 355301 235 258 212 163 115 291247 210 201 207 64 202 235 251 249 252 247 244 250 177220 261 251-257 205245 231225213 205 70 2 206 234240 183 251 270 241-247 215- 237 210- 216 219 235 62 202 245 54 52 50 203 215 221 313-317318 220- 224 238 542-550 531-539 532 759 223-239 905 911-917907 188 190 251- 293 202 206 208 210 212 216 220 1008 275 539 201 400 27 168 865857 302 324 340 795 848 918 903 903A 408 412 440 483A - F 435 751 735 745 532 210 727 733 335 328 330 345 214 350 800 806 441 441A 230302 306 308 312 316 301 303 305 307 309 325 251 807 821 829 801 818-824 420 424 430 832A 832 842A 842 852A 852 862A 862 872A 872 351A 351 355A 355 359A 359 363A 363 367A 367 425 911 943 951 918 936 940 944 271 253 241 301 319 919A 919 935 949 928 936 940-946 353 264 367 361 310 1005 1010 423425413 - 419 457-467 469-471 473-481 454 729A-D 733-743 734-740 724-732 936 824-828 920 949 943941 715 95 445 324 328 545 590 425 447 827 565 585 595 904 315 507 561 706 536 200 100 280-290 150 158 164 276 516 698 161 159 157777 132 127 180 528 120 247 372 524 548 550 538 152 345 336 515 658 227 27 29 539 115 135 321 558#200-202 558#C&D 965 140 350 808 915 461 435433 945 1012 421 727A-C 218 255 206 739 260 840 650 642 351 451 551 375 530 643 415 12 700 802 99 89 87 901 560564 568 572 576580584588592594 906 908 910 912 914 916 918920 922 924 548 423 668 901 305 -313 423 405 352354 611 320322 346 323 471 484 528 426 264 430 1001 508 756- 760 940 930 544546 515 7 745 7 549 211 213 151 160 257 433-457 482 330 349 401 539 440 691 755 67 312 202 651 443445 447 716 218 398 998 262 335 218 640-646506 327 469 303 401 403 254 401 91 40 101 819 301 725 595 705 541 QuarryRoad Homer Avenue Lane 8 West MedicalFoundation Way Lane 7 West Lane 7 East Encina Avenue ElCamino Real UrbanLane WellsA venue Forest Avenue High Street Emerson Street Ch a n n i n g A v e n u e Alma Street ElCamino Real Mitchell Lane EverettAvenue Lytton Avenue Lane 15 E High Street Alma Street Bryant Street Lane 6 E Lane 11 W Lane21 High Street Gilman Street Hamilton Avenue University Avenue Bryant Court Lane 30 Florence Street Kipling Street Tasso Street Cowper Street Everett Avenue Waverley Street Cowper Street Webster Street Everett Court Lytton Avenue Lane A West L L La Addison Avenue Forest Avenue Downing Lane Homer Avenue La Lane 39 Lane 56 Hamilton Avenue Webster Street Waverley Street Kipling Street Bryant Street Ramona Street Addison Avenue Scott Street Webster Street Cowper Street Addison Avenue Channing Avenue Ramona Street Paulsen Ln Lane 15 E Lane 20 W Lane 20 E University Avenue CalTrain ROW Emerson Street Waverley Street Kipling Street Bryant Street Ramona Street Palo Road ay PearLane Lane 12 W Lane 5 E Everett Avenue Homer Avenue Emerson Street ta l m D r iv e Alma Street Lytton Avenue This map is a product of the City of Palo Alto GIS This document is a graphic representation only of best available sources. Legend abc Zone A (Ground Floor) - Zone B (Upper Floors) abc Zone B 0' 500' Downtown Palo Alto Business Improvement District Area Map CITY O F PALO A L TO I N C O R P O R AT E D C ALIFOR N I A P a l o A l t o T h e C i t y o f A P R IL 16 1 894 The City of Palo Alto assumes no responsibility for any errors ©1989 to 2012 City of Palo Alto rrivera, 2012-04-30 16:57:54 CPA BID (\\cc-maps\gis$\gis\admin\Personal\rrivera.mdb) EXHIBIT A Retailers and Restaurants (100%) Service Businesses (75%) Professional Businesses (50%) Lodging Businesses (100%) Financial Institutions EXHIBITB Downtown Palo Alto Business Improvement District Annual BID Assessments ZONE A $225.00 (Under 6 FTE employees) (50%) $340.00 (6 to under 11 FTE employees) (75%) $450.00 (11+ FTE employees) (100%) $170.00 (Under 4 FTE employees) (50%) $260.00 (4 to under 7 FTE employees) (75%) $340.00 (7+ FTE employees) (100%) ZONED (75%) $170.00 $260.00 $340.00 $130.00 $200.00 $260.00 EXEMPT (25% or fewer FTE employees, including the business owner) " $ 60.00 (26% to under 1 FTE employees) (25%) $ 50.00 $110.00 (2 to 4 FTE employees) (50%) $ 90.00 $170.00 (5 to 9 FTE employees) (75%) $130.00 $225.00 (10+ FTE employees) (100%) $170.00 $225.00 (up to 20 rooms) (50%) $340.00 (21 to 40 rooms) (75%) $450.00 (41 + rooms) (100%) $500.00 $170.00 $260.00 $340.00 $500.00 N otel: For retail, restaurant, service, and professional businesses, size will be determined by number of employees either full-time or equivalent (FTE) made up of multiples of part-time employees. A full FTE equals approximately 2000 hours annually. Lodging facilities will be charged by number of rooms available and financial institutions will be charged a flat fee. Note 2: Second floor (and higher) businesses located within Zone A, will be assessed the same as similar street-level businesses located within Zone B. Note 3: Assessment amounts are rounded to the nearest ten dollars. The minimum assessment will be $50.00. City of Palo Alto (ID # 3514) City Council Staff Report Report Type: Consent Calendar Meeting Date: 4/15/2013 City of Palo Alto Page 1 Summary Title: Approval of Amendment No. 3 with the United States Geological Survey Title: Approval of Amendment No. 3 to Extend Contract No. C05109138 for Three Additional Years in the Amount of $62,000 per Year for a Total of $186,000 With The United States Geological Survey for San Francisco Bay Monitoring From: City Manager Lead Department: Public Works Recommendation Staff recommends that Council approve and authorize the City Manager or his designee to execute the attached Amendment No. 3 to extend Contract No. C05109138 with the United States Geological Survey (U.S.G.S.) in the amount of $62,000 per year for a term of three years for a total of $186,000 to monitor pollutants in clam tissue and sediments and to monitor ecosystem diversity in the Palo Alto Baylands area of San Francisco Bay. Background The U.S.G.S. has collected clam and sediment data adjacent to the Palo Alto discharge point since 1974. Much data on diversity and clam reproductivity has also been collected at that location. The work done by the U.S.G.S. consists of two parts. Part I provides for sampling and analysis of tissue from clams and sediment found in the mud flats near the discharge point of the Regional Water Quality Control Plant (RWQCP). Part II provides for monitoring of the number and diversity of the benthic organisms and the reproductivity of the clams. The monitoring is required by the San Francisco Bay Regional Water Quality Control Board (Regional Board), which regulates the discharge of treated wastewater to the San Francisco Bay from the RWQCP. The sampling will cover a three-year calendar period from 2013 to 2015 and continue the work approved by Council and completed during the previous three years (CMR:164:10). City of Palo Alto Page 2 Discussion The results to date show dramatic decreases in pollutant levels in the clams compared to the early 1980s when pollutant discharges from RWQCP were much greater. Part II of the program has shown that the clams are better able to reproduce and that certain other benthic organisms are on the increase, consistent with a less contaminated environment. No other consultants or institutions have the unique capability to analyze pollutant and ecosystem trends in the vicinity. The work done by the U.S.G.S. for Palo Alto to date has been exemplary and received nationwide recognition. The U.S.G.S. does not charge Palo Alto for the full cost of the sampling program, but only for incremental costs associated with Palo Alto’s required monitoring. The Regional Board and Palo Alto wish to take advantage of the knowledge, experience, and efficiency in analyzing and interpreting data that the U.S.G.S. is able to bring to this project. For these reasons, the U.S.G.S. has been declared a sole source provider of the required services. Resource Impact The total cost of the three-year agreemeent is $186,000. First year costs (in the amount of $62,000) will be funded from the Wastewater Treatment Funds FY 2013 Operating budget. Future years will be subject to Council’s approval of that years Wastewater Treatment Fund budget and the agreement acknowledges that it is “subject to availability of appropriations”. Policy Implications Approving this continuing monitoring program does not have any new policy implications. Environmental Review The monitoring program does not constitute a project under the California Environmental Quality Act (CEQA) and, therefore, an environmental assessment is not required. Attachments: Attachment A: USGS Amendment 3 (PDF) City of Palo Alto Page 3 Attachment B: Sole Source Request (DOC) Attachment C - USGS PA Proposal 2013 final (PDF) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . City of Palo Alto REQUEST FOR SOLE SOURCE OR EXEMPTION FROM COMPETITIVE SOLICITATION (Purchases in excess of $5,000) To: John Montenero Buyer or Contract Manager From: Phil Bobel Public Works/Environmental Services Division (Requestor) (Department/Division) Request for the purchase of: Continued monitoring of clam tissue in San Francisco Bay adjacent to Regional Water Quality Control Plant. Requested supplier/vendor, if known: United States Geological Survey Vendor Address: 345 Middlefield Road - MS 472 Menlo Park, CA 94025 Vendor Contact: Jan Thompson Phone: (650) 329-4364 Purchase Requisition #: 0000109138 0000149673 Cost Estimate $: $186K JUSTIFICATION: Justification must include the following: 1. A description of the unique need that requires a sole source purchase or an exemption from competitive solicitation, including why it may be impracticable, unavailing or impossible to seek bids or proposals. 2. A statement describing the actions taken by the department during the search for the product or service and the measures taken to ensure competitive pricing. 3. Any reviews, reports, or specifications prepared by the department during the research for available products or services. 4. Expected length of contract. Provide your Justification here: 1. The United States Geological Survey (USGS) is uniquely qualified and positioned to conduct this ongoing monitoring of the clams and clam tissue adjacent to Palo Alto’s Regional Water Quality Control Plant (RWQCP). The USGS has been conducting this research monthly since 1974. It is imperative to execute the sampling and analysis consistently utilizing exactly the same methods from one month to the next. Palo Alto is participating in an ongoing program and is not paying the full cost of the monitoring. If Palo Alto were to find another “vendor”, it would have to pay the full cost of the monitoring - a dramatic increase. 2. Knowing that no other entity is conducting clam monitoring adjacent to the Palo Alto RWQCP outfall, it would be prohibitively expensive to contract with anyone else to do this work. 3. No such reviews or reports were done. 4. Three years. History: We have funded the USGS research since 1994. This Sole Source request is for Amendment No. 3 to the existing Contract No. C05109138. The Regional Water Quality Control NPDES permit requires the Plant to participate in regional monitoring of metals and other specified parameters in sediments and organisms in the South San Francisco Bay. The monitoring protocols have been designed to be compatible with or complement the RWQCB’s Regional Monitoring Program. Monitoring efforts are being conducted by the USGS and are coordinated with more than 30 years of previous data collections and investigations by the USGS at this inshore location. Follow these Instructions for the Approval Process: After filling out your Request, please follow these instructions: 1. The departmental approval shall be obtained by sending this Request (filled out by requestor) as an attachment via email to the Department Head, who approves by typing the words: “Request Approved”. (Any approvals required prior to this step shall be obtained at the Department Head’s discretion and are not required as an attachment to the email.) 2. The Department Head then forwards the same email directly to the Buyer or Contract Manager assigned to the purchase requisition. (See name at top of form.) 3. The Buyer or Contract Manager will obtain Purchasing Manager and City Manager approvals prior to processing the Request. City of Palo Alto – Sole Source and Exemption from Competitive Solicitation 1 PROPOSAL TO THE CITY OF PALO ALTO: NEAR FIELD RECEIVING WATER MONITORING January 1, 2013 through December 31, 2015 U. S. GEOLOGICAL SURVEY Dan Cain, Janet Thompson, Francis Parchaso, and Samuel Luoma 345 MIDDLEFIELD ROAD MENLO PARK, CA 94025 2 Table of Contents Executive Summary 3 Introduction 6 Objectives 9 Monitoring Program Approach 11 Products 17 Budget 17 3 Executive Summary of Past Findings Since 1976, USGS personnel have assessed trace metal concentrations in sediments and sediment‐dwelling invertebrate species and have profiled benthic community structure in the vicinity of the discharge of the Palo Alto Regional Water Quality Control Plant (PARWQCP). Ancillary physicochemical and biological factors that influence metal concentrations in sediments, metal concentrations in the tissues of invertebrates, and benthic community structure (exotic species invasions, pelagic food availability, and weather anomalies) have also been measured during this time. These studies initially found exceptionally high concentrations of copper (Cu) and silver (Ag) in invertebrates from this site, including the clam Macoma petalum which was being sampled at multiple sites throughout the Bay for metal bioaccumulation studies. Additional sampling indicated that a major source of Cu and Ag was the effluent discharged by the PARWQCP. In the mid‐1980’s, metal concentrations in sediments and in M. petalum began to recede as source reduction/control measures were implemented by municipal and industrial waste discharges in response to provisions under the Clean Water Act. This period of declining metal concentrations extended into the 1990’s. Since then, metal concentrations have remained relatively low and stable. The temporal trends in Cu and Ag copper observed at the site corresponded with reduced Cu/Ag discharge from the PARWQCP and not with other measured properties of the environment. Several biological measurements indicated that infaunal species were adversely affected by the elevated metal concentrations in the 1970‐80’s. During this period, reproductive activity in M. petalum was low relative to after the reduction in metal concentrations. This pattern is believed to be due to Ag inhibition of reproductive tissue development as observed in studies by other researchers. The benthic community also showed signs of environmental stress when metal concentrations were elevated. The community was dominated by only a few opportunistic animals (organisms capable of fast invasion and spread in disturbed environments) that lived on the surface of the mud in tubes or as shelled animals, brood their young, and fed on waterborne particles. As metal concentrations receded, the composition of the benthic community shifted to a more diverse and even distribution of species. Furthermore, the community, which was previously dominated by surface dwelling, brooding species, shifted to its present composition of species with varying life history characteristics. In particular, species that lay their eggs in the mud and feed by burrowing through and consuming the mud, which were previously 4 rare in the community, increased in abundance. The changes to the benthic community are “young” by the standards used to measure stability in estuarine benthic communities and patterns that are barely visible now may become more apparent in the future. The biological responses described above were most strongly correlated with the reduction in metal concentrations. Analysis of other factors that potentially influenced species abundance such as sediment composition (for example, mean particle size and organic content) and salinity did not correspond to the long‐term patterns that were observed. The only unidirectional change in an environmental factor during this period was the decline in metal inputs from the waste treatment plant during the 1980s and the corresponding metal concentrations in sediments and in the bioindicator, M. petalum. The long‐term, continuous data collected from the site presents a detailed record of the recession of metal contamination and the subsequent recovery of the benthic invertebrate assemblage which can be attributed to the reduction of metals loadings to South Bay achieved by PARWQCP. Programs to control and reduce loadings of priority pollutants, including, Cu, Ag, Ni, and Hg to South Bay and monitoring of those pollutants continue. By monitoring metal concentrations and community dynamics, this study supports the self‐monitoring and reporting programs of PARWQCP, and compliments the Regional Monitoring Program. In addition to providing an historical perspective and current status of environmental conditions in South Bay, data from this study are constructing a contemporary baseline to identify future perturbations to the benthic community. Human impacts on the Bay ecosystem will continue. Events that have the potential of altering the observed contamination in the system include (1) the ongoing salt pond restoration which could mobilize old and new sediments and change the hydrodynamics of South Bay, and (2) new technologies, such as the rapidly expanding commercialization of consumer products utilizing metal‐based nanoparticles. An important implication of our recent findings is that effects on metal contamination from these changes have not proven to be sufficient to be detectable in the present South Bay environment. Other changing environmental conditions will also shape ecological patterns in South Bay. For example, recent changes in the seasonal pattern of phytoplankton growth and accumulation (blooms) in South Bay are likely to affect and be affected by the benthic community. We have seen a significant increase in the background levels of phytoplankton biomass in the south bay since 1999. We have also observed a fall phytoplankton bloom in addition to the spring bloom during many years since 1999. There are a number of possible factors contributing to these changes in phytoplankton dynamics. Two 5 strong possibilities include: (1) a change in light availability due to lower suspended sediment concentrations; or (2) smaller populations of filter feeding bivalves that normally heavily graze the phytoplankton during all periods except early spring. It is also likely that these changes would not be occurring if metal contamination was sufficient to inhibit phytoplankton growth. 6 1.0 Introduction In the 1990's, the California Regional Water Quality Control Board (RWCB) described a Self Monitoring Program with its NPDES permits for South Bay dischargers that included specific receiving water monitoring requirements. One of the requirements was for inshore monitoring of metals and other specified parameters, to be conducted using the clam Macoma petalum, formerly reported as Macoma balthica (Cohen and Carlton, 1995), and sediments, following protocols compatible with the Regional Monitoring Program. Monitoring efforts were to be coordinated with the ongoing U. S. Geological Survey (USGS) research program. The latter requirement stemmed from the 18 years of previous data that USGS collected from a station south of the Palo Alto discharge site in the extreme South Bay. Since 1994, such a program has continued with the partial support of the City of Palo Alto. The goal of the RWQB and the City of Palo Alto was to take advantage of that data in interpreting monitoring data in the future. The program has had demonstrated successes in this regard, documenting a progressive reduction of contamination at a mudflat near the discharge of the Palo Alto Regional Water Quality Control Plant, identifying regional and local factors contributing to more complicated temporal patterns, and continuing monitoring priority pollutants, including copper, nickel, and mercury. Concurrent with, and prior to the initiation of the metals monitoring study, the USGS also collected benthic (sediment dwelling animal) community data at three, nearby intertidal sites south of Sand Point). These data provided the opportunity to examine whether the changes observed in the tissue concentrations of metals in Macoma petalum correlated with biological effects. Specifically, reproduction in M. petalum and changes to the benthic community structure were analyzed. Indeed, results demonstrated a strong linkage between metal exposures and biological responses at the site. Looking forward, our understanding of water quality and the ecosystem needs to consider on‐ going and planned activities that could influence metals and biological communities in South Bay. For example, the South Bay Salt Pond Restoration Project is nearing completion of the physical restructuring of the ponds (expected to be completed in 2013). Remobilized sediment and water from these ponds has been transported throughout South Bay, and likely to our field site. The potential of these newly created habitats to be sources of metals, such as Hg, is currently being studied. In addition, recent increases in phytoplankton biomass in South Bay since 1999 (Cloern and others, 2007) and the apparent causes of the increase (influx of predators on the benthos and decreased turbidity) are likely to be 7 reflected in the benthic community structure if the higher phytoplankton biomass persists. Analysis of community structure will identify long‐term shifts in species composition as well as episodic disturbances. Monitoring of metals will contribute to a strength‐of‐evidence approach to assess potential causes for observed changes in community structure. The present proposal is for the three‐period starting on January 1, 2013 and ending on December 31, 2015. The proposal describes a continuation of the near‐field (inshore) monitoring program at Palo Alto that builds upon a long‐term record spanning 3 decades. We propose to accompany evaluations of trends in metal exposure with determinations of biological processes that integrate and respond to environmental perturbations on different temporal scales. Specifically, reproduction in the indicator clam, M. petalum, and a benthic community structure will be assessed. Monitoring metal concentrations and biological endpoints will provide a robust evaluation of site‐ specific ecological condition that is compatible with the Regional Monitoring Program’s goals (RWQB). 1.1 Previous Monitoring Studies in Near Field Receiving Waters Since 1976, USGS personnel have monitored and studied trace metal concentrations in sediments and sediment‐dwelling species in the vicinity of the discharge of the Palo Alto Regional Water Quality Control Plant (PARWQCP), along with ancillary factors that could affect metal concentrations (body weight in animals; characteristics of sediment, salinity). These studies initially found exceptionally high concentrations of copper and silver in mud‐dwelling animals from this area and strong seasonal variability in concentrations that confounded some interpretations. Additional studies documented that contaminants were present in enriched concentrations throughout the food web, including birds from the area. Two metals, copper and silver, were especially enriched at this site compared to other locations in the Bay. Concentrations of copper and silver declined in both sediments and M. petalum after 1981 as the PARWQCP implemented advanced treatment of influent and source control programs. The downward trends in copper in sediments and in the clam correlated with reduced Cu discharges from the PARWQCP. The mudflat environment where this animal lives is quite complex and variable from year‐to‐year. Sediment composition (for example mean particle size and organic content), salinity, and other factors varied seasonally and from one year to another. However, over a sustained period of study none of these factors displayed temporal trends that corresponded to the changes in metal concentrations, metal effects, or benthic community changes. The only unidirectional change in an 8 environmental factor during this period was the decline in metal inputs from the waste treatment plant during the 1980s. Since 1991, metal concentrations in M. petalum more or less stabilized around 40 µg/g Cu and 4 µg/g Ag. Annual variations in tissue metal concentrations of relatively small magnitude occur, but there have been no sustained trends and the temporal patterns no longer do not correlate with Cu and Ag discharged from the plant. Although effluent from the plant contributes to the metal loading to South Bay, the data suggest it does not have the predominant influence on metal concentrations at the monitoring site that it did historically. Seasonal fluctuations and annual variation in metal concentrations now are more likely related to a combination of factors such as local inputs, diffuse and periodic inputs (e.g., storm related run‐off), remobilization/recycling of legacy contamination of Bay sediments, and local physicochemical conditions affecting metal bioavailability. Since 1974, USGS personnel have also monitored and studied the benthic community and reproductive activity of Macoma balthica in the vicinity of the discharge of the Palo Alto Regional Water Quality Control Plant (PARWQCP). Our findings during the first 10 years of this study were published in Nichols and Thompson (1985a and 1985b). We found that this community was composed of non‐ indigenous, opportunistic species that dominated the community due to their ability to survive the many physical disturbances on the mudflat. The disturbances discussed included sediment erosion and deposition, and exposure at extreme low tides. The possible effects of metal exposure as a disturbance factor were not considered in these analyses as the decline in metal concentrations in Macoma balthica and sediment had just begun. Results from the metal study (see Hornberger and others, 1999, 2000) suggested that sediments and local populations of clams at this location are sensitive indicators of metal loadings to nearby of receiving waters. These studies illustrated reduced metal concentrations in sediments and in biota (M. petalum) within a year of significant reductions in metal loading from the PARWQCP discharge. Other analyses (Thompson and others, 2002, Shouse 2002, 2003, Moon and others, 2005, Cain and others, 2006) indicated that higher‐level biological responses metal loading take longer. A response at the organism level (i.e. reproductive activity) is seen within a year or two, but a consistent response at the community level, a change in the number or type of species that colonized the area change when the pollutant concentration, took several years to develop. Due to the natural intra‐annual variability of benthic community dynamics it is likely to take a minimum of 5‐10 years for a change in the benthic community to be stable. 9 Analyses of the benthic community data from 1974 through 2009 revealed the following trends: 1. The community has shifted from being dominated by a few opportunistic species to a community where there are more equally dominant, equally persistent species. 2. The community, which was previously dominated by surface dwelling, brooding species in now composed of species with varying life history characteristics. 3. Species that lay their eggs in the mud, previously rarely present in the community, have increased in abundance. 4. Macoma balthica reproductive activity has increased concurrent with the decline in tissue metal concentrations, resulting in a population with predictable semi‐annual reproductive periods. Continued sampling and analysis will allow us to monitor if the benthic community structure continues to reflect changes in pollutant concentration. These studies demonstrated how coordinated monitoring of metals exposure and biological response can strengthen interpretations of causality. The strong temporal associations among metal loading, environmental levels of metal contamination, and biological responses support an interpretation of biological recovery following a recession of metal exposures resulting from reductions in metal loadings to South Bay by municipal and industrial dischargers in general, and PARWQCP in particular. Temporally intensive sampling (multiple months per year) facilitated identification of long‐ term trends from annual and intra‐annual variation driven by climate patterns and growth and reproductive cycles in benthic invertebrates. The data from a receiving water‐monitoring program of this type is not only useful for the Regional Board but can provide valuable feedback to local dischargers. Palo Alto has used the data to provide feedback to participants in their silver source control program, for example. Periodically summarizing the long‐term data set may offer opportunities to evaluate influences of the PAWRQCP on contamination in South Bay compared to influences of other inputs. 2.0 Objectives The purpose of the monitoring program is to characterize temporal trends in trace element concentrations, the reproductive activity of the bioindicator, M. petalum, and the benthic community structure inshore at a site near the discharge of the PARWQCP. Specifically, trace elements and associated parameters will be determined in surficial, fine‐grained sediments and in the clam M. 10 petalum, the reproductive state of M. petalum will be evaluated, and the structural and functional features of the benthic community will be analyzed. Biological attributes will be characterized with simple, established metrics. Reproductive activity will be reported as total percentage of animals reproductively active for each year (we know from previous work that this percentage is lowest during periods with the highest pollutant concentrations (Hornberger and others, 1999, 2000)) and as a reproductive index. Community composition will be described in terms of number of species, number of individuals of dominant species and rank analysis curves (i.e. benthic communities in more polluted environments are expected to have fewer species and higher numbers of individuals for the dominant species than benthic communities in non‐polluted environments). All monitoring will be conducted in a manner that will provide high‐quality data that are compatible with existing data, and with data provided by programs such as the Regional Monitoring Program. Specific objectives include: 1. Provide data to assess seasonal patterns and annual trends in trace element concentrations in sediments and clams near the discharge; specifically at the site designated in the RWQCB's Self‐Monitoring Program for PARWQCP. 2. Present the data within the context of historical changes inshore in South Bay and within the context of on‐going monitoring of effluents. 3. Coordinate sampling efforts with similar inshore receiving water monitoring programs associated with the Regional Monitoring Program. 4. Provide data which could support other South Bay issues or programs such as development of sediment quality standards. 5. Continue monitoring to assess seasonal and annual trends in benthic community structure at one location near the discharge (specifically at the site designated in the RWQCB's Self‐ Monitoring Program for PARWQCP) 6. Provide data to assess seasonal and annual trends in reproductive activity of clams near the discharge; specifically at the site designated in the RWQCB's Self‐Monitoring Program for PARWQCP Despite the complexities of monitoring natural systems, the monitoring approach described below has been effective in the past in relating changes in near field contamination in San Francisco Bay to changes in metal discharges from RWQCPs. We have been also been effective in relating changes in 11 near field contamination to changes in benthic community structure (Kennish, 1998) and in reproductive activity of a clam (Hornberger and others, 2000). Existing historical data will provide a context within which cause and effect can be assessed for change in the future. If continued, this study will provide data on metal concentrations in the local receiving water that can be evaluated within the context of similar data collected by Regional Monitoring Program), feed‐back on new or on‐going initiatives to control and mitigate inputs of metals from sources within the service area, and new treatment technologies to reduce effluent loadings. Continuation of this study will build on a unique data set where ecological data and contaminant data are concurrently collected and analyzed within the context of changing sewage treatment practices. In addition, USGS will provide material support to the City of Palo Alto for the creation of a self‐guided path within the Baylands Nature Preserve that illustrates the ecological recovery of the intertidal site following the reductions in metal loadings to South Bay. 3.0 Monitoring Program Approach The proposed approach will monitor trace element concentrations in fine‐grained sediments and resident populations of the deposit‐feeding clam M. petalum. Sediment particles bind most trace element pollutants strongly, efficiently removing them from the water column. Numerous prior studies have shown that analysis of concentrations of these pollutants in sediments provide a time‐integrated indicator of trace element input to the water column. Animals such as M. petalum live in contact with sediments and feed upon organic material associated with sediment particles. Uptake of trace elements from ingested sediments results in their accumulation in the tissues of M. petalum. These animals are important prey for larger species that live in the Bay, including migrating waterfowl. Thus, analysis of the tissues of the clams provides a measure of their exposure to bioavailable pollutants and an estimate of their food web transfer of the pollutants. Analysis of the trace element concentration in the tissues of a bioindicator, such as M. petalum, indicates whether a pollutant is bioavailable and bioaccumulated. Although elevated pollutant concentrations in an organism suggest an increased probability of toxicological risk, it does not confirm toxicity. Chronic metal toxicity in an invertebrate can manifest in physiological impairment, including reproductive impairment (Hook and Fisher 2001a; 2001b) and retarded growth (Irving and others, 2003). Annual growth and reproductive cycles in M. petalum can be followed with the condition index (CI), which is an indicator of the physiological condition of the animal and, specifically, is the total soft‐ 12 tissue weight of a clam standardized to shell length (Cain and others, 1990). Earlier studies of M. petalum from the site near the PARWCQP outfall showed that reproductive activity increased as Cu and Ag concentrations in the clam’s soft tissues declined (Hornberger and others, 2000). Therefore, the CI and reproductive activity of M. petalum appears to be a good indicators of physiological stress related to elevated exposure to some metals, at least. The benthic community data will be analyzed in a manner similar to that used in published benthic studies near sewage treatment outfalls (see Kennish 1998). The proposed approach will examine species dominance patterns and community composition changes in combination with environmental variables. Other studies have shown that more opportunistic species are likely to persist in highly disturbed environments (as was shown by Nichols and Thompson (1985a) at this location in 1974 through 1983), and that the abundance and types of dominant species can change with changes in metal concentrations (Shouse and others, 2003). We will also examine changes in the benthic community concurrent with changes in the concentrations of specific metals. For example it has been shown that some crustacean and polychaete species are particularly sensitive to elevated copper (Morrisey and others, 1996, Rygg 1985) and that most taxonomic groups have species that are sensitive to elevated silver (Luoma and others, 1995). 3.1 Sampling Design 3.1.1 Sampling Location Samples for sediment and clam tissue metal concentrations will be collected from one station located south of Sand Point (Figure 1). Benthic community samples will be collected at a station located near Sand Point (Figure 1): station FN45 is 12 m from the edge of the marsh and 110 cm above MLLW. These locations are on a mudflat on the shore of the bay (not a slough) approximately 1 kilometer southeast of the Palo Alto discharge. It was chosen because it is influenced by the discharge of PARWQCP, but it is not immediately adjacent to that discharge. Thus, it reflects a response of receiving waters to the effluent, beyond just a measure of the effluent itself. Earlier studies have shown that dyes, natural organic materials in San Francisquito Creek and effluent from the PAWQCP all move predominantly south toward Sand Point and thereby influence the mudflats in the vicinity. Earlier work showed that San Francisquito Creek and the Yacht Harbor were minor sources of most trace elements compared to the PARWQCP. Earlier studies also showed that intensive monitoring at one site was more effective in determining trends in trace element contamination than was less frequent sampling at a 13 larger number of sites in the vicinity of the discharge. 3.1.2 Sampling Frequency The basic metals monitoring program supported by Palo Alto will have a sampling frequency of three times per year as stipulated by the RWQCB. The RMP samples once during the wet season, once during the dry season and then again at the end of the dry season. The basic program will follow this schedule also. Sampling will correspond as closely with Regional Monitoring Program sampling as tides permit. Statistical techniques such as power analyses indicate that three samples per year will provide 20 percent sensitivity in detecting trends. The USGS monitoring experience at the site indicates that seasonal cycles and episodic events influence annual variation in metal concentrations in sediments and tissues; three samples per year will be insufficient to track and characterize seasonality in metal contamination. Consequently, important episodic events may be missed, associations between metals and biological metrics, such as community structure, are weakened, and long‐term trends in both metal exposure and community composition are more difficult to define. Thus, samples will be collected more frequently as stipulated below. To support interpretations of cause and effect in a temporally variable environment, metal and benthic invertebrate sampling should be coincident and thus sampling will coincide with the three periods stipulated by the RWQCB. In addition, previous analyses of benthic invertebrate data (1974 through 1983) indicated that benthic samples need to be collected at a time step of about every other month in order to distinguish seasonal differences from inter‐annual differences if the differences are small (Nichols and Thompson 1985a, 1985b). In dynamic systems such as San Francisco Bay, distinguishing between the effects of natural seasonal changes and anthropogenic environmental stressors is more reliable with more frequent samples. Thus, the USGS will sample metals in the sediment and clam tissue and will sample the benthic community an additional two to six times per year. 3.2 Constituents to be Determined The chemical constituents to be analyzed in sediments and in the tissues of M. petalum as well as ancillary chemistry and physical properties are listed in Table 1. The constituent list is consistent with the chemical and physical constituents analyzed by the Regional Monitoring Program. The methods employed are designed to minimize below detection limit determinations. The variables chosen for determination are those required by the Regional Board. 14 Benthic samples will be processed to produce species lists, species counts, and species functional group. Each clam selected for reproductive analysis will be characterized by size (length in mm), sex, developmental stage, and condition of gonads. 3.3 Methods 3.3.1 Sampling Sediments and M. petalum will be collected at low tide from the exposed mudflat. Sediment samples will be scraped from the visibly oxidized (brownish) surface layer (top 1–2 cm) of mud. This surface layer represents recently deposited sediment and detritus, or sediment affected by recent chemical reactions with the water column. The sediment also supports microflora and fauna, a nutritional source ingested by M. petalum. Enough sediment will be obtained to conduct all proposed analyses (Table 1) and to archive approximately 10 grams for any unforeseen future needs. Clams will be collected by hand from the same area. Typically, 60–120 individuals will be collected, representing a range of sizes (shell length). As they are collected, the clams will be placed into screw‐cap polypropylene container (previously acid‐washed) containing site water. These containers will be used transport the clams to the laboratory. Three replicate samples will be collected using 8.5 cm diameter x 20 cm deep cores for the benthic community monitoring study. A minimum of 10 individual Macoma balthica of varying sizes (minimum of 5mm) will be collected for the analysis of reproductive activity. 3.3.2 Sample Preparation Sediments will be sieved through 100 μm mesh in ultra‐clean (~18 Mohm) deionized water immediately upon return to the laboratory. Both the fraction of sediment passing through the sieve and the fraction retained on the sieve will be dried and weighed. Particle size distribution will be defined as the proportion of the total sediment mass divided between these two fractions. This also provides an estimate of the particle size characteristics of the bulk sediment for those who might want to make comparisons with bulk analyses. Replicate aliquots of the fraction of sediment that passes through the 100 μm sieve will be digested by reflux with concentrated nitric acid to determine near‐total concentrations (the same approach employed by the RMP). Replicate aliquots of sediment will also be extracted in 0.5N hydrochloric acid to determine the leachable, anthropogenic contribution to the sediment concentration (Luoma and Bryan 1982). Another aliquot will be prepared for the determination of total 15 organic carbon following the method described by Harris and others (2001). Clams will be returned to the laboratory live, washed free of local sediment and placed in clean ocean water diluted with distilled water to the salinity on the mudflat at the time of collection (determined from the water in the mantle cavity of representative individual clams). Clams will be moved to a constant temperature room (12ºC) and starved for 48 hours to allow for the egestion of sediment and undigested material from their digestive tracts. Following depuration, the length of each clam will be determined then the shell and soft tissue will be separated. Soft tissues will be composited into 4 ‐ 8 composite samples, each containing animals of similar shell length, and digested by nitric acid reflux. Samples for mercury and selenium analysis will be composited as above, then frozen. Later, the samples will be homogenized refrozen, and then freeze dried. Subsamples will be weighed, and then digested in concentrated nitric/peroxide. The above procedure will result in 4 ‐ 8 replicate samples from each collection for ICPOES analysis and 4 samples for mercury/selenium analysis. The data from these animals are not normally distributed and may be affected by animal size. Correlations will be calculated between animal size and metal concentration; and established procedures will be employed to calculate metal content of a standard sized clam for each collection to facilitate comparisons of metal exposure over time. Previous studies show that such data reduction procedures are necessary to account for biological factors (size and growth) that affect metal concentrations, thus allowing a clearer linkage between PARWQCP discharges and responses of the clams. Benthic samples will be washed on a 0.5mm screen, preserved in 10% formalin for two weeks and then transferred to 70% ethyl alcohol with Rose Bengal stain. Clams collected for reproductive analysis will be immediately preserved in 10% formalin at the time of collection. In the laboratory, the visceral mass of each clam will be removed, stored in 70% ethyl alcohol, and then prepared using standard histological techniques: tissues will be dehydrated in a graded series of alcohol, cleared in toluene (twice for one hour each), and infiltrated in a saturated solution of toluene and Paraplast for one hour and two changes of melted Tissuemat for one hour each. Samples will then be embedded in Paraplast in a vacuum chamber and then thin sectioned (10 micrometer) using a microtome. Sections will be stained with Harris’ hematoxylin and eosin. 3.3.3 Analytical methods Digested tissue and sediment samples will be evaporated to dryness and reconstituted in 0.6N 16 hydrochloric acid. Most elements will be analyzed by Inductively Coupled Plasma Optical Emission Spectrophotometry (ICP‐OES) (Table 1). Selenium will be determined by Inductively Coupled Plasma Mass Spectrometry (ICP‐MS) staged with a hydride generation unit (Kleckner, USGS, pers. commun.). Mercury will be determined using established methods (Olund and others, 2004; USEPA, 2001). The total carbon content of sediment samples was determined from the analysis for elemental abundance and C using a Carlo Erba NA 1500 elemental analyzer connected to an Elementar Optima isotope ratio mass spectrometer (Steve Silva, USGS, pers. commun.). To minimize metal contamination of samples, all glassware and plastic used for sample collection, preparation, and storage will be cleaned by sequentially washing with a detergent, deionized water rinse, followed by a 10‐percent hydrochloric‐acid wash and double‐deionized water (18 mega‐ ohm (MΩ) resistivity) rinse. Materials will be dried in a dust‐free positive‐pressure environment, sealed, and stored in a cabinet. Quality control will be maintained by frequent analysis of blanks, analysis of National Institute of Standards and Technology standard reference materials (e.g., NIST 2709a, San Joaquin soils, and NIST 2976, mussel tissue) with each analytical run, and internal comparisons with prepared quality control standards. Method detection limits (MDL) and reporting levels (MRL) will be determined using the procedures outlined by Glaser and others (1981), Childress and others (1999), and U.S. Environmental Protection Agency (2004). A full quality‐assurance/quality‐control plan is available upon request. Benthic samples will be sorted and individuals identified to the lowest taxonomic level possible (some groups are still not well defined in the bay, such as the oligochaetes), and individuals for each species will be enumerated. The stained thin sections of clam reproductive tissue will be examined with a light microscope. Each individual will be characterized by size (length in mm), sex, developmental stage, and condition of gonads, thus allowing each specimen to be placed in one of five qualitative classes of gonadal development (Parchaso 1993). 3.4 Data Analysis The period of sample collection is the calendar year. Annual data will be compiled, summarized, and appended to the long‐term dataset. Data for sediment chemistry and metal concentrations in the bioindicator, M. petalum, will be assessed within the context of the long‐term record as well as more recent data. Changes in elemental constituents and associations among those constituents and with 17 other environmental properties will be analyzed by parametric and non‐parametric statistical models, such as correlation and ANOVA. The seasonal benthic community data will be examined using multivariate techniques (Shouse 2002). Multivariate analyses will be used to identify connections between the environmental variables (including body burdens of trace elements in bivalves and copper and silver sediment concentrations) and benthic community structure. Data for individual species will also be examined to determine if there are any population changes as a result of metal concentration changes. The time series for individual species will be examined using annual and seasonal trends, and will be examined in conjunction with time series of trace metal concentration. The reproductive stage data will be similarly analyzed as a time series in conjunction with trace metal concentrations and benthic community data. 4.0 Products Data will be summarized and reported to the City of Palo Alto at the completion of each sampling period (i.e., calendar year). Annual reports will be consistent with the Regional Monitoring Program reporting format. Appendices will include basic analytical data and computations, quality assurance data, species lists, species counts, species analysis by functional group, and basic analytical and computational data for the benthic community and reproductive data. To meet the objectives of the study, the report will include interpretive figures, tables and narrative descriptions of the most recent data in relation to the long‐term time series. Summary, multi‐year reports will include analysis of the data within the context of the historical change of trace element concentration (e.g., Hornberger and others, 1999). 5.0 Budget The budget for the proposed project is outlined in detail in Table 2. This budget includes charges only for the basic monitoring program of 3 sediment and clam tissue collections per year and for 4 benthic community collections per year. USGS will complement the study with the additional collections in each year. This proposal describes work that will begin January 2013 and continue for three years, through December 2015. Renewal each January will be at the discretion of Palo Alto. 18 Bibliography California Regional Water Quality Control Board, San Francisco Bay Basin (Region 2) Water Quality Control Plan (Basin Plan). http://www.waterboards.ca.gov/sanfranciscobay/basin_planning.shtml Cain, D.J., F. Parchaso, J.K. Thompson, S.N. Luoma, A. H. Lorenzi, E. Moon, M.K. Shouse, M.I. Hornberger, J.L. Dyke, and R. Cervantes, 2005, Near field receiving water monitoring of trace metals and a benthic community near the Palo Alto Water Quality Control Plant in South San Francisco Bay, California: 2005: U.S. Geological Survey Open File Report 2006‐1152, 120 pp. Cloern, J.E., Jassby, A.D., Thompson, J.K, Hieb, K. 2007. A cold phase of the east Pacific triggers new phytoplankton blooms in San Francisco Bay: Proceedings National Academy of Science, v. 104, no. 47, p. 18561‐18565. Childress, C.J.O., Foreman, W.T., Connor, B.F., and Maloney, T.J., 1999, New reporting procedures based on long‐term method detection levels and some considerations for interpretations of water‐quality data: U.S. Geological Survey Open‐File Report 99–193, 19 p. Cohen, A.N., and Carlton. J.T., 1995, Biological study, nonindigenous aquatic species in a United States estuary; a case study of the biological invasions of the San Francisco Bay and Delta: Washington D. C., U.S. Fish and Wildlife Service, 283p. Glaser, J.A., Foerst, D.L., Mckee, G.D., Quave, S.A., and Budde, W.L., 1981, Trace analyses for wastewaters: Environmental Science and Technology, v. 15, no. 12, p. 1426–1435. Hook, S.E. and Fisher, N.S., 2001a, Sublethal effects of silver in zooplankton: importance of exposure pathways and implications for toxicity testing: Environmental Toxicology and Chemistry, v20: 568‐574. 19 Hook, S.E. and Fisher, N.S.,2001b,. Reproductive toxicity of metals in calando copepods: Marine Biology, v.138:1131‐1140. Hornberger, M., S. Luoma, D. Cain, F. Parchaso, C. Brown, R. Bouse, C. Wellise, and J. Thompson, 1999, Bioaccumulation of metals by the bivalve Macoma balthica at a site in South San Francisco Bay between 1977 and 1997: Long‐term trends and associated biological effects with changing pollutant loadings: U.S. Geological Survey Open File Report 99‐55, 42p. Hornberger, M., Luoma, S. Cain, DParchaso, .F. Brown, C. Bouse, R. Wellise, C. and Thompson, J. 2000, Linkage of bioaccumulation and biological effects to changes in pollutant loads in South San Francisco Bay: Environmental Science and Technology, v.34:2401‐2409. Irving, E.C., Baird, D. J., and Culp, J.M., 2003, Ecotoxicological responses to the mayfly Baetis tricaudatus to dietary and waterborne cadmium: implications for toxicity testing: Environmental Toxicology and Chemistry, v.22: 1058‐1064. Kennish, J.K., 1998, Pollution impacts on marine biotic communities: CRC Press, New York. 310 pp. Lorenzi, A., Cain, D. J., Parchaso, F., Thompson, J.K., Luoma, S.N., Hornberger, M.I., Dyke, J.L., Cervantes, R., and Shouse, M.K. 2007, Near‐field receiving water monitoring of trace metals and a benthic community near the Palo Alto Regional Water Quality Control Plant in South San Francisco Bay: 2006: U.S. Geological Survey Open File Report 2007‐1199, 121p. Luoma, S.N. and Bryan, G.W., 1982, A statistical study of environmental factors controlling concentrations of heavy metals in the burrowing bivalve Scrobicularia plana and the polychaete Neris diversicolor: Estuararine Coastal and Shelf Science, v.15: 95‐108. Luoma, S.N., Y.B. Ho, and G. W. Bryan, 1995, Fate, bioavailability and toxicity of silver in estuarine environments: Marine Pollution Bulletin, v.31:44‐54 20 Moon, E., Shouse, M.K., Parchaso, F., Thompson, J.K., Luoma, S.N., Cain, D. J., and Hornberger, M. I. , 2004, Near field receiving water monitoring of trace metals and a benthic community near the Palo Alto Water Quality Control Plant in South San Francisco Bay, California: 2004: U.S. Geological Survey Open File Report 2005‐1279, 115 pp. Morrisey, D.J., A.J. Underwood, and L. Howitt, 1996, Effects of copper on the faunas of marine soft‐sediments: an experimental field study: Marine Biology v.125:199‐213 Nichols, F.N, and J.K. Thompson, 1985a, Persistence of an introduced mudflat community in South San Francisco Bay, California. Marine Ecology Progress Series, v.24:83‐97. Nichols, F.N, and J.K. Thompson, 1985b, Time scales of change in the San Francisco Bay benthos: Hydrobiologia, v 129:121‐138. Olund, S.D., DeWild, J.F., Olson, M.L., and Tate, M.T., 2004, Methods for the preparation and analysis of solids and suspended solids for total mercury. Chapter 8 of Book 5, Laboratory Analysis; Section A, Water Analysis: U.S. Geological Survey USGS Techniques and Methods Report 5 A 8, 23 p., http://pubs.er.usgs.gov/usgspubs/tm/tm5A8. Rygg, B., 1985, Effect of sediment copper on benthic fauna. Marine Ecology Progress Series,. V.25:83‐89. Shouse, Michelle K., 2002, The effects of decreasing trace metal concentrations on benthic community structure: Master's Thesis, San Francisco State University. 177pp. Shouse M.K., Parchaso, F., and J.K. Thompson, 2003, Near field receiving water monitoring of benthic community near the Palo Alto Water Quality Control Plant in South San Francisco Bay: February 1974 through December 2002: U.S. Geological Survey Open File Report 03‐224, 52pp. 21 Thomson, E.A., S.N. Luoma, C.E. Johansson, and D.J. Cain, 1984, Comparison of sediments and organisms in identifying sources of biologically available trace metal contamination: Water Resources, V.18, no. 6:755‐765. Thompson, J.K and F. N. Nichols, 1988, Food availability controls seasonal cycle of growth in Macoma balthica (L.) in San Francisco Bay, California: Journal of Experimental Marine Biology and Ecology. v116:43‐61. Thompson, J.K., F. Parchaso, and M.K. Shouse, 2002, Near field receiving water monitoring of benthic community near the Palo Alto Water Quality Control Plant in South San Francisco Bay: February 1974 through December 2000: U.S. Geological Survey Open File Report 02‐394, 117pp. USEPA, 2001, Appendix to Method 1631: Total Mercury in Tissue, Sludge, Sediment, and Soil by Acid Digestion and BrCl Oxidation: Environmental Protection Agency EPA‐821‐R‐01‐013, 13 p. USEPA, 2002, Method 1631, Revision E: Mercury in water by oxidation, purge and trap, and cold vapor atomic fluorescence spectrometry: U.S. Environmental Protection Agency, Office of Water EPA‐ 821‐R‐02‐019, 36 p. USEPA, 2004, Revised assessment of detection and quantitation approaches: Washington, D.C., U.S. Environmental Protection Agency, EPA–821–B–04–005, 254 p. 22 Figure 1. Map of Palo Alto sampling site and the surrounding region. The locations where benthic invertebrate samples and metals samples (sediments and M. petalum) will be collected are shown in panel B. 23 Table 1. Chemical and physical data, sampling frequency (per year), and analytical methodology proposed for monitoring the near‐field discharge of the Palo Alto RWQCP. Constituent Matrix Frequency Method Ag Sediment and tissue 6‐8 ICP‐OES Al Sediment 6‐8 ICP‐OES Cd Sediment and tissue 6‐8 ICP‐OES Cr Sediment and tissue 6‐8 ICP‐OES Cu Sediment and tissue 6‐8 ICP‐OES Fe Sediment and tissue 6‐8 ICP‐OES Hg (total) Sediment and tissue 3 Atomic fluorescence spectrometry Mn Sediment 6‐8 ICP‐OES Ni Sediment and tissue 6‐8 ICP‐OES Pb Sediment and tissue 6‐8 ICP‐OES Se Sediment and tissue 6‐8 ICP‐MS coupled to hydride generation Zn Sediment and tissue 6‐8 ICP‐OES Particle size Sediment 6‐8 Physical separation (>100 μm & <100 μm) TOC Sediment 6‐8 ICP‐MS Archive Sediment 6‐8 Dry sediment storage 24 Table 2. 2012‐2015 Budget for Palo Alto Studies. ACTIVITY SALARY SUPPLIES ANALYSES MISC TOTALS Sediment & Tissue Community & Reproduction Sediment & Tissue Sediment & Tissue Community & Reproduction Field Work $3,850 $3,400 $500 Sample Preparation $4,950 $4,700 $1,100 Analyses (exclusive of mercury and selenium) $2,200 $1,100 Mercury/ Selenium $2,600 Invertebrate Taxonomy $500 Reproductive Tissue Processing $1,000 Total Organic Carbon $805 Data Analysis $3,465 $2,000 Instrument Maintenance/Repair $1,650 Final Report $4,200 $1,950 SUBTOTALS $18,665 $12,050 $2,700 $3,405 $1,500 $1,650 TOTAL DIRECT COST/Year $39,970 INDIRECT COST/Year $22,030 TOTAL COSTS 2013 $62,000 TOTAL COSTS 2014 $62,000 TOTAL COSTS 2015 $62,000 TOTAL COSTS 2013 through 2015 $186,000 City of Palo Alto (ID # 3297) City Council Staff Report Report Type: Consent Calendar Meeting Date: 4/15/2013 City of Palo Alto Page 1 Summary Title: FY 2013 Midyear BAO Title: Approval of Finance Committee Recommendation Regarding Adoption of Budget Amendment Ordinance Amending the Budget for Fiscal Year 2013 to Adjust Budgeted Revenues and Expenditures in Accordance with the Recommendations in the Midyear Report From: City Manager Lead Department: Administrative Services Recommendation Staff and the Finance Committee recommend that Council: 1. Adopt Budget Amendment (Attachment A) and items added by staff subsequent to Finance Committee review. The Budget Amendment includes: a. Proposed midyear adjustments to the Fiscal Year 2013 budget for the General Fund, Enterprise Funds, Special Revenue Funds, Internal Service Funds, and Capital Improvement Fund (Exhibit 1) b. Fiscal Year 2012 Midyear CIP Adjustments (Exhibit 2) c. Amendments to the Fiscal Year 2012 Table of Organization (Exhibit3) 2. Adopt Resolution of the Council of the City of Palo Alto Amending the 2011-2013 Compensation Plan for Management and Professional Adopted by Resolution No. 9282 to Change the Title of Two Positions, Change the Salary for Two Positions, Salary Sheet Corrections for Three Positions, and Grade Code Correction for One Position and Eliminate One Position (Attachment B), which includes: a. Management/Professional Compensation Plan Changes (Exhibit 1) 3. Authorize usage of Council Contingency funds to purchase automated external defibrillators (AEDs), as recommended by the Finance Committee City of Palo Alto Page 2 Motion Adopt the Fiscal Year 2013 midyear Budget Amendment Ordinance and additional items proposed by staff subsequent to Finance Committee review, including the proposed midyear adjustments to the General Fund, Enterprise Funds, Special Revenue Funds, Internal Service Funds, and Capital Improvement Projects Fund; proposed midyear CIP adjustments; and amendments to the City’s Table of Organization. Adopt the resolution of the Council of the City of Palo Alto amending the 2011-2013 compensation plan for Management and Professional adopted by Resolution no. 9282. Accept and adopt the Finance Committee’s recommendation to utilize City Council Contingency Funds totaling $92,500 to purchase automated external defibrillators (AEDs) for use around City facilities and various public places. Executive Summary The documents attached summarize changes to the City’s financial position and outline changes to the Fiscal Year 2012 adopted budget. In an effort to consolidate information and streamline the Budget Amendment Ordinance (BAO) process, where possible, budget changes are held until the midyear report is presented to Council. Staff summarizes the recommended changes to the Fiscal Year 2013 adopted budget as part of the normal course of business through December 31, 2011. Staff presents to Council additional recommendations that have not yet been reviewed by the Finance Committee. These changes are listed in the Committee Review and Recommendation section of this report. Committee Review and Recommendation On March 5, 2013, the Finance Committee reviewed the Fiscal Year 2013 second quarter financial results, midyear amendments to the City’s operating budget and capital plan, and amendments to the City’s Table of Organization. The midyear report reviewed by the Finance Committee is attached (Attachment C). In addition to the items presented to the Finance Committee, staff recommends the following adjustments: General Fund o A transfer from the General Fund to the Enterprise Funds totaling $96,556 to reimburse the Enterprise Funds for litigation settlement previously approved by Council. Enterprise Funds City of Palo Alto Page 3 o Reclass 1 FTE Program Assistant I to Program Assistant II in the Wastewater Treatment Fund. This change has a $6 thousand impact to this fund and is incorporated in Attachment A, Exhibit 3. o A $0.35 million transfer from the Water Fund to the Vehicle Replacement Fund for the purchase of a hydro excavator. The midyear detail included in the report to Finance Committee listed the transfer under the Wastewater Collection Fund. The attached BAO is updated for this change. Subsequent to staff’s midyear presentation to Finance Committee, the City implemented a settlement of litigation (previously approved by Council) with a property owner that includes a waiver of all fees and permit charges on a project. The permit charges associated with Enterprise Funds total $96,556. The following will be transferred from the General Fund to the impacted Enterprise Funds to cover the cost of this settlement - $5,278 to the Gas Fund, $35,178 to the Wastewater Fund, and $56,100 to the Water Fund. As part of the Committee’s motions, the Committee recommends that Council use Council Contingency funds to purchase AEDs for use around City facilities and various public places. At the direction of the Finance Committee on March 5, 2013 staff is proposing the purchase of 37 AEDs in FY 2013; 27 are identified as Tier 1, representing the highest priority City facilities, and the remaining 10 are a second tier priority primarily because of the proximity of other AEDs in Tier 1. The suggested locations routinely have concentrated populations of the public and staff, are more isolated City facilities, or represent highly mobile deployments in the case of Police patrol cars. Accomplishing both tiers would result in the most complete coverage of City facilities. The cost estimate of Tier 1 would be approximately $67,500 and Tier 2 would be an additional $25,000 for a total of $92,500 which would include two extended warranties providing replacement and repair coverage for a total of 10 years and all necessary wall cabinets and associated supplies. The Police and Fire Departments are evaluating mechanisms to fund the on-going replacement of the AEDs, but possible sources include a special event-related fee, interdepartmental charges, or other general fund sources. Staff is proposing Fire Department personnel on light duty perform the required monthly inspections and Fire department staff will also take the lead on providing initial training to City departments with the assistance of the Human Resources Department. Tier 1 - $67,500 - 27 Units Patrol cars (8) City Hall (3) City of Palo Alto Page 4 Libraries (5) Golf Course (1) Cubberley (2) Mitchell Park Community Center (2) Lucie Stern (1) Baylands Nature Interpretative Center (1) Animal Services (1) Mayfield Park (1) Baylands Baseball Field (1) Pearson-Arastradero Preserve (1) Tier 2 - $25,000 - 10 Units City Hall (3 additional units) Art Center (1) Junior Museum and Zoo (1) Children’s Theatre (1) Community Theatre (1) Foothills Park (1) Municipal Services Center (1 additional unit) Golf Course (1 additional unit) Resource Impact Adoption of the attached ordinance will allow for adjustments to the Fiscal Year 2013 budget, amend the Table of Organization and adjust the General Fund CIP projects. Approval of this ordinance results in a $3.1 million increase to the BSR. The projected ending BSR balance is $30.2 million, or 19.8 percent of adopted expenditures. This exceeds the 18.5 percent target level of total adopted operating expenditures by 1.3 percent or $2 million . The Capital Fund Infrastructure Reserve is projected to end with a balance of $14 million, an increase of $3.5 million. The projected ending Rate Stabilization Reserve total for all Enterprise Funds increases by $14.3 million. City of Palo Alto Page 5 Attachments: Attachment A - Midyear Budget Amendment Ordinance (DOC) Attachment A, Exhibit 1 - Proposed Midyear Adjustments (PDF) Attachment A, Exhibit 2 - Midyear CIP Adjustments (PDF) Attachment A, Exhibit 2A - Cooperatively-Owned Backup Generators (COBUGs) (GS- 13003) (PDF) Attachment A, Exhibit 3 - Amendments to Table of Organization (PDF) Attachment B - Resolution of the Council of the City of Palo Alto Amending the 2011- 2013 Compensation Plan for Management and Professional (PDF) Attachment C - FY 2013 Midyear BAO (staff report ID3442) (PDF) Attachment D - Excerpt of Finance Committee Minutes (PDF) ATTACHMENT A Page 1 of 4 ORDINANCE NO. XXXX ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 2013 TO ADJUST BUDGETED REVENUES AND EXPENDITURES IN ACCORDANCE WITH THE RECOMMENDATIONS IN THE MIDYEAR REPORT The City Council of the City of Palo Alto does ordain as follows: SECTION 1. The City Council of the City of Palo Alto finds and determines as follows: A. Pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto, the Council on June 18, 2012 did adopt a budget for fiscal year 2013, including a Table of Organization describing the staffing for each department; and B. After reviewing the current budgeted revenues and expenditures for Fiscal Year 2013, adjustments to the budget are recommended to more accurately reflect year-end projections; and C. Various staffing adjustments require an amendment to the Table of Organization including the title change from WGW Supervisor to Utilities Supervisor, title change from Supervisor Water Transmissions to Utilities Supervisor, title change from Superintendent Parks to Community Services Superintendent, title change Manager Arts to Community Services Senior Program Manager, title change Supervisor Open Space to Community Services Manager, title change Supervisor Recreation Programs to Community Services Manager, add 0.50 FTE Performance Auditor, add 0.50 FTE Senior Librarian, add 1.0 FTE Senior Planner, add 1.0 FTE Senior Management Analyst, reclassify 1.0 FTE Senior Administrator Human Resources to Manager, Employee Relations, reclassify 1.0 FTE Program Assistant I to Program Assistant II, reduce 1.0 FTE Animal Control Officer, reduce 1.0 Animal Services Supervisor; and D. City Council authorization is needed to amend the fiscal year 2013 budget as hereinafter set forth. SECTION 2. The General Fund Budget Stabilization Reserve is hereby increased by the sum of Three Million One Hundred One ATTACHMENT A Page 2 of 4 Thousand Three Hundred Twelve Dollars ($3,101,312), as described in Exhibit 1. As a result of this change, the Budget Stabilization Reserve will change to Thirty Million Two Hundred Seventy Seven Thousand Dollars ($30,277,000). SECTION 3. The Capital Fund Infrastructure Reserve is hereby increased by the sum of Three Million Four Hundred Sixty Three Thousand Five Hundred Fifty-Seven Dollars ($3,463,557), as described in Exhibit 1. As a result of this change, the Infrastructure Reserve will change to Fourteen Million Two Hundred Forty Three Thousand Five Hundred Seventy Dollars ($14,243,570). SECTION 4. The Supply Rate Stabilization Reserve in the Electric Fund is hereby increased by the sum of Six Million Eight Hundred Ninety Six Thousand Seven Hundred Seventy Dollars ($6,896,770) as described in Exhibit 1. SECTION 5. The Distribution Rate Stabilization Reserve in the Electric Fund is hereby increased by the sum of One Million Five Hundred Sixty-Two Thousand Two Hundred Eighty-Six Dollars ($1,562,286) as described in Exhibit 1. SECTION 6. The Rate Stabilization Reserve in the Fiber Optics Fund is hereby decreased by the sum of One Thousand Seven Hundred Fifty-Seven Dollars ($1,757) as described in Exhibit 1. SECTION 7. The Supply Rate Stabilization Reserve in the Gas Fund is hereby increased by the sum of Three Hundred Fifty-Seven Thousand Three Hundred Eighty-Seven Dollars ($357,387) as described in Exhibit 1. SECTION 8. The Distribution Rate Stabilization Reserve in the Gas Fund is hereby increased by the sum of Three Hundred Sixty Thousand Four Hundred Forty-One Dollars ($365,441) as described in Exhibit 1. SECTION 9. The Rate Stabilization Reserve in the Wastewater Collection Fund is hereby increased by the sum of Five Hundred Eighteen Thousand Two Hundred Seventy-Seven Dollars ($518,277) as described in Exhibit 1. SECTION 10. The Rate Stabilization Reserve in the Water Fund is hereby increased by the sum of Four Million Five Hundred Seventy-Nine Thousand Four Hundred Twenty-Six Dollars ($4,579,426) as described in Exhibit 1. ATTACHMENT A Page 3 of 4 SECTION 11. The Rate Stabilization Reserve in the Refuse Fund is hereby decreased by the sum of Twenty Eight Thousand Nine Hundred Thirty-Six Dollars ($28,936) as described in Exhibit 1. SECTION 12. The Rate Stabilization Reserve in the Storm Drainage Fund is hereby increased by the sum of Ten Thousand Five Hundred Thirty-Eight Dollars ($10,538) as described in Exhibit 1. SECTION 13. The Rate Stabilization Reserve in the Wastewater Treatment Fund is hereby decreased by the sum of Four Thousand Five Hundred Seventy-Seven Dollars ($4,577) as described in Exhibit 1. SECTION 14. The reserve balance in the Airport Fund is hereby increased by the sum of One Thousand Dollars ($1,000) as described in Exhibit 1. SECTION 15. Adjustments to other funds are made as shown in Exhibit 1. These changes impact Special Revenue, Internal Service, and Other Funds Reserves as indicated in Exhibit 1. SECTION 16. Adjustments to decrease or increase amounts allocated to various Capital Improvement Projects are made as shown in Exhibit 2. These changes impact the General Fund Budget Stabilization Reserve and the Infrastructure Reserve and are reflected in the adjustments as shown in Exhibit 1. SECTION 17. The Table of Organization is hereby amended to reflect the changes shown in Exhibit 3, which is attached hereto and incorporated herein by reference. These changes impact Reserves and are accounted for in the changes shown in Exhibit 1. SECTION 18. As specified in Section 2.28.080 of the Palo Alto Municipal Code, a two-thirds vote of the City Council is required to adopt this ordinance. SECTION 19. The Council of the City of Palo Alto hereby finds that this midyear adjustment is not a project under Section 21065 of the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. Capital improvement projects described in this ordinance will be assessed individually as appropriate. ATTACHMENT A Page 4 of 4 INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Sr. Asst. City Attorney City Manager ____________________________ Director of Admin. Services ATTACHMENT A, EXHIBIT 1 CITY OF PALO ALTO FISCAL YEAR 2013 MIDYEAR FINANCIAL REPORT GENERAL FUND (in thousands) BUDGET ACTUALS (as of 12/31/12) Adopted Adjusted Midyear Midyear Pre % Midyr Categories Budget Budget Budget Changes Encumbr Encumbr Actual Budget Revenues & Other Sources Sales Tax 22,545 22,545 23,364 819 ‐ ‐ 7,805 33% Property Tax 27,306 27,306 27,912 606 ‐ ‐ 9,813 35% Transient Occupancy Tax 9,591 9,591 10,439 848 ‐ ‐ 4,519 43% Utility Users Tax 10,731 10,731 10,825 94 ‐ ‐ 5,296 49% Documentary Transfer Tax 5,078 5,078 6,800 1,722 ‐ ‐ 3,090 45% Other Taxes and Fines 2,058 2,058 2,058 ‐ ‐ 1,086 53% Charges for Services 23,682 23,682 23,616 (66) ‐ ‐ 8,717 37% Permits & Licenses 6,614 6,614 6,693 79 ‐ ‐ 3,888 58% Return on Investment 959 959 774 (185) ‐ ‐ 415 54% Rental Income 12,640 12,640 12,640 ‐ ‐ 6,451 51% From Other Agencies 157 157 170 13 ‐ ‐ 30 18% Charges To Other Funds 10,874 10,874 10,834 (40) ‐ ‐ 5,530 51% Other Revenues 1,188 1,188 1,244 56 ‐ ‐ 774 62% Total Revenues 133,423 133,423 137,369 3,946 ‐ ‐ 57,415 42% Operating Transfers‐In 18,995 18,995 19,215 220 ‐ ‐ 9,498 49% Encumbrances and Reappropriation 4,386 4,386 ‐ From Infrastructure Reserve ‐ ‐ ‐ ‐ Total Sources of Funds 152,418 156,804 160,970 4,166 ‐ ‐ 66,912 43% Expenditures & Other Uses City Attorney 2,436 2,789 2,791 2 70 391 1,075 55% City Auditor 965 1,009 1,020 11 ‐ 55 481 53% City Clerk 1,558 1,583 1,609 26 12 10 529 34% City Council 465 500 501 1 ‐ 108 172 56% City Manager 2,578 3,075 3,075 ‐ 192 104 1,115 46% Administrative Services 7,156 7,379 7,593 214 62 109 3,290 46% Community Services 21,893 22,412 22,496 84 130 2,507 10,405 58% Public Safety 59,914 60,790 60,711 (79) 255 908 28,351 49% Human Resources 2,982 3,024 3,035 11 ‐ 88 1,333 47% Library 6,996 7,634 7,662 28 9 691 3,096 50% Planning and Community Environment 11,111 12,170 12,294 124 201 830 4,910 48% Public Works 13,947 14,513 14,545 32 820 732 6,099 53% Non‐Departmental (1,108) (1,223) (346) 877 ‐ ‐ 527 ‐152% Cubberly Lease 7,133 7,133 7,133 ‐ ‐ ‐ 3,505 49% Total Expenditures 138,026 142,788 144,119 1,331 1,751 6,532 64,889 51% Operating Transfers‐Out 14,782 14,962 14,696 (266) ‐ ‐ 7,357 50% Total Uses of Funds 152,808 157,750 158,815 1,065 1,751 6,532 72,246 51% Net Surplus/(Deficit) (390) (946) 2,155 3,101 Budget Amendments Authorized by Council: BAO 5163 ‐ Development Center furnishing 191 191 BAO 5174 ‐ EKG monitors CIP (FD‐12000) 180 180 BAO 5177 ‐ Infrastructure measure polling 90 90 BAO 5186 ‐ Infrastructure measure outreach 95 95 Total Augmentations Authorized by Council ‐ 556 556 ‐ Net Surplus/(Deficit) Excluding BAOs (390) (390) 1,599 3,101 BSR Balance 27,732 27,176 30,277 3,101 BSR % of Total Use of Funds (A) 18.15% 17.78% 19.81% (A) FY 2012 closed with a $4.4 million surplus. As a result, $7.7 million was transferred to the infrastructure reserve leaving the BSR beginning balance at $28.1 million, or 18.5 percent, to start FY 2013. 1 of 23 ATTACHMENT A, EXHIBIT 1 ACTUALS Adopted Adjusted Midyear Midyear Pre- % of Budget Budget Budget Changes Encumbr Encumbr Actual Midyear Budget Sources of Funds Net Sales 118,906 118,906 118,942 36 58,223 49% Interest Income 3,635 3,635 3,635 1,698 47% Other Income 12,718 12,718 12,981 263 3,975 31% Reapprop/Encumbrances 19,169 19,169 0% Total Sources 135,259 154,428 154,727 299 - - 63,896 47%** Uses of Funds Utility Purchases 72,991 73,054 66,193 (6,861) 100 30,711 47% Salaries & Benefits 11,522 11,520 11,486 (34) 5,300 46% Contract Services 4,389 6,481 6,481 3 2,620 1,141 58% Supplies and Materials 805 818 818 20 32 263 39% Facility and Equipment Purchases 44 44 44 0% General Expenses 4,508 6,864 6,864 1,886 1,020 974 57% Rent and Leases 3,948 3,948 3,948 1,933 49% Allocated Charges 8,779 8,778 8,778 3,183 36% Debt Service 9,486 9,485 9,485 4,595 48% Subtotal 116,472 120,992 114,097 (6,895) 1,909 3,772 48,100 47% Equity Transfer 11,768 11,768 11,768 5,884 50% Operating Transfers Out 322 322 454 132 198 44% Capital Improvement Program 10,910 25,468 24,071 (1,397) 1,660 4,808 7,164 57% Total Uses 139,472 158,550 150,390 (8,160) 3,569 8,580 61,346 49% Net To (From) Reserves (4,213) (4,122) 4,337 8,459 Beginning Reserves 126,112 128,134 128,134 - Projected Ending Reserves 121,899 124,012 132,471 8,459 ** Excludes encumbrances and reappropriation BUDGET (as of 12-31-12) CITY OF PALO ALTO FISCAL YEAR 2013 MIDYEAR BUDGET SUMMARY ELECTRIC FUND (in thousands of dollars) 2 of 23 4/10/2013 ATTACHMENT A, EXHIBIT 1 ACTUALS Adopted Adjusted Midyear Midyear Pre- % of Budget Budget Budget Changes Encumbr Encumbr Actual Midyear Budget Sources of Funds Net Sales 2,850 2,850 2,850 - 1,591 56% Interest Income 303 303 303 - 178 59% Other Income 724 724 725 1 Reapprop/Encumbrances 781 781 - Total Sources 3,877 4,658 4,659 1 - - 1,769 46%** Uses of Funds Salaries & Benefits 766 765 764 (1) 355 46% Contract Services 168 251 251 3 27 35 26% Supplies and Materials 11 11 11 7 64% General Expenses 22 22 22 1 5% Rent and Leases 28 28 28 13 46% Allocated Charges 393 393 393 166 42% Subtotal 1,388 1,470 1,469 (1) 3 27 577 41% Operating Transfers Out 2 2 6 4 1 17% Capital Improvement Program 400 1,097 1,097 - 7 92 9% Total Uses 1,790 2,569 2,572 3 3 34 670 27% Net To (From) Reserves 2,087 2,089 2,087 (2) Beginning Reserves 12,729 13,470 13,470 Projected Ending Reserves 14,816 15,559 15,557 (2) ** Excludes encumbrances and reappropriation BUDGET (as of 12-31-12) CITY OF PALO ALTO FISCAL YEAR 2013 MIDYEAR BUDGET SUMMARY FIBER OPTICS FUND (in thousands of dollars) 3 of 23 4/10/2013 ATTACHMENT A, EXHIBIT 1 ACTUALS Adopted Adjusted Midyear Midyear Pre- % of Budget Budget Budget Changes Encumbr Encumbr Actual Midyear Budget Sources of Funds Net Sales 37,016 37,016 36,555 (461) 13,445 37% Interest Income 813 813 813 408 50% Other Income 1,704 1,704 1,821 117 460 25% Reapprop/Encumbrances 19,211 19,211 - Total Sources 39,533 58,744 58,400 (344) - - 14,313 37%** Uses of Funds Utility Purchases 16,286 16,334 15,572 (762) 4,028 4,046 52% Salaries & Benefits 4,543 4,554 4,555 1 2,064 45% Contract Services 1,792 2,933 2,933 6 2,890 328 110% Supplies and Materials 472 464 464 120 123 52% Facility and Equipment Purchases 43 43 43 28 113 328% General Expenses 704 863 863 144 164 36% Rent and Leases 321 321 321 34 11% Allocated Charges 4,019 4,019 4,019 1,561 39% Debt Service 803 803 803 124 15% Subtotal 28,983 30,334 29,573 (761) 6 7,210 8,557 53% Equity Transfer 5,971 5,971 5,971 2,985 50% Operating Transfers Out 207 207 304 97 158 52% Capital Improvement Program 7,756 23,772 23,369 (403) 16,400 1,091 2,821 87% Total Uses 42,917 60,284 59,217 (1,067) 16,406 8,301 14,521 66% Net To (From) Reserves (3,384) (1,540) (817) 723 Beginning Reserves 14,929 16,992 16,992 - Projected Ending Reserves 11,545 15,452 16,175 723 CITY OF PALO ALTO FISCAL YEAR 2013 MIDYEAR BUDGET SUMMARY GAS FUND (in thousands of dollars) BUDGET (as of 12-31-12) ** Excludes encumbrances and reappropriation 4 of 23 4/10/2013 ATTACHMENT A, EXHIBIT 1 ACTUALS Adopted Adjusted Midyear Midyear Pre- % of Budget Budget Budget Changes Encumbr Encumbr Actual Midyear Budget Sources of Funds Net Sales 15,124 15,124 15,124 - 7,465 49% Interest Income 397 397 397 - 191 48% Other Income 908 908 977 69 1,088 111% Reapprop/Encumbrances 11,044 11,044 - - Total Sources 16,429 27,473 27,542 69 - - 8,744 53%** Uses of Funds Utility Purchases 8,556 8,556 8,556 4,278 50% Salaries & Benefits 2,004 2,015 2,020 5 833 41% Contract Services 280 360 360 4 145 46 54% Supplies and Materials 241 231 231 22 82 99 88% Facility and Equipment Purchases - 1 #DIV/0! General Expenses 97 97 97 47 48% Rent and Leases 176 176 176 79 45% Allocated Charges 2,126 2,126 2,126 756 36% Debt Service 129 129 129 0% Subtotal 13,609 13,690 13,695 5 26 228 6,138 47% Operating Transfers Out 147 147 233 86 127 55% Capital Improvement Program 4,354 15,298 14,758 (540) 5,476 1,745 49% Total Uses 18,110 29,135 28,686 (449) 26 5,704 8,010 48% Net To (From) Reserves (1,681) (1,662) (1,144) 518 Beginning Reserves 7,579 5,751 5,751 - Projected Ending Reserves 5,898 4,089 4,607 518 CITY OF PALO ALTO FISCAL YEAR 2013 MIDYEAR BUDGET SUMMARY WASTEWATER COLLECTION FUND (in thousands of dollars) BUDGET (as of 12-31-12) ** Excludes encumbrances and reappropriation 5 of 23 4/10/2013 ATTACHMENT A, EXHIBIT 1 ACTUALS Adopted Adjusted Midyear Midyear Pre- % of Budget Budget Budget Changes Encumbr Encumbr Actual Midyear Budget Sources of Funds Net Sales 34,446 34,446 34,446 20,481 59% Interest Income 749 749 749 327 44% Other Income 3,392 3,392 3,519 127 1,827 52% Reapprop/Encumbrances 34,139 34,139 - Total Sources 38,587 72,726 72,853 127 - - 22,635 58%** Uses of Funds Utility Purchases 15,940 15,940 15,940 7,455 8,292 99% Salaries & Benefits 5,210 5,209 5,221 12 2,670 51% Contract Services 743 1,152 1,152 4 438 110 48% Supplies and Materials 451 541 541 42 122 257 78% Facility and Equipment Purchases 11 12 12 2 1 25% General Expense 452 454 454 176 39% Rents and Leases 3,001 3,001 3,001 994 33% Allocated Charges 3,395 3,394 3,394 1,439 42% Debt Service 3,219 3,219 3,219 813 25% Subtotal 32,422 32,922 32,934 12 46 8,017 14,752 69% Equity Transfer - - - - Operating Transfers Out 1,705 1,705 2,093 388 716 42% Capital Improvement Program 6,115 32,384 27,532 (4,852) 25 12,164 6,373 57% Total Uses 40,242 67,011 62,559 (4,452) 71 20,181 21,841 63% Net To (From) Reserves (1,655) 5,715 10,294 4,579 Beginning Reserves 10,488 8,997 8,997 Projected Ending Reserves 8,833 14,712 19,291 4,579 ** Excludes encumbrances and reappropriation CITY OF PALO ALTO FISCAL YEAR 2013 MIDYEAR BUDGET SUMMARY WATER FUND (in thousands of dollars) BUDGET (as of 12-31-12) 6 of 23 4/10/2013 ATTACHMENT A, EXHIBIT 1 ACTUALS Adopted Adjusted Midyear Midyear Pre- % of Budget Budget Budget Changes Encumbr Encumbr Actual Midyear Budget Sources of Funds Net Sales 26,794 26,794 26,794 - - 13,497 50% Interest Income 209 209 209 - - 98 47% Other Income 3,372 3,522 3,585 63 - - 1,607 45% Reapprop/Encumbrances 2,083 2,083 0% Total Sources 30,375 32,608 32,671 63 - - 15,202 47%** Uses of Funds GreenWaste Hauling Contract 13,315 13,262 13,262 2 5,103 38% Salaries and Benefits 3,293 3,295 3,287 (8) 1,397 43% Contract Services 5,791 7,225 7,225 76 1,006 2,688 52% Supplies and Materials 85 85 85 8 42 59% Facility and Equipment Purchases 3 3 3 0% General Expenses 80 80 80 540 675% Rents and Leases 2,709 2,709 2,709 0% Allocated Charges 2,747 2,747 2,747 2,677 97% Debt Service 625 625 625 0% Subtotal 28,648 30,031 30,023 (8) 76 1,016 12,447 45% Operating Transfers Out 306 306 406 100 153 38% Capital Improvement Program 175 1,368 1,368 350 370 187 66% Total Uses 29,129 31,705 31,797 92 426 1,386 12,787 46% Net (From) Landfill Closure Liab - - Net To (From) Reserves 1,246 903 874 (29) Beginning Reserves (3,187) (3,410) (3,410) - Projected Ending Reserves (1,941) (2,507) (2,536) (29) CITY OF PALO ALTO FISCAL YEAR 2013 MIDYEAR BUDGET SUMMARY REFUSE FUND (in thousands of dollars) BUDGET (as of 12-31-12) ** Excludes encumbrances and reappropriation 7 of 23 4/10/2013 ATTACHMENT A, EXHIBIT 1 ACTUALS Adopted Adjusted Midyear Midyear Pre- % of Budget Budget Budget Changes Encumbr Encumbr Actual Midyear Budget Sources of Funds Net Sales 5,620 5,620 5,620 2,950 52% Interest Income 158 158 158 - 83 53% Other Income 113 113 113 - 11 10% Reapprop/Encumbrances 3,722 3,735 13 - Total Sources 5,891 9,613 9,626 13 - - 3,044 52%** Uses of Funds Salaries and Benefits 1,007 1,005 1,001 (4) 463 46% Contract Services 371 514 514 15 67 273 69% Supplies and Materials 93 93 93 17 34 55% Facility and Equipment Purchases 8 8 8 0% General Expenses 18 59 59 199 337% Rents and Leases 6 6 6 0% Allocated Charges 870 870 870 401 46% Debt Service 947 947 947 0% Subtotal 3,320 3,502 3,498 (4) 15 84 1,370 42% Operating Transfers Out 13 13 19 6 6 32% Capital Improvement Program 3,518 6,828 6,828 1,300 1,749 45% Total Uses 6,851 10,343 10,345 2 15 1,384 3,125 44% Net Surplus (Deficit) (960) (730) (719) 11 Beginning Reserves 1,667 2,726 2,726 - Projected Ending Reserves 707 1,996 2,007 11 CITY OF PALO ALTO FISCAL YEAR 2013 MIDYEAR BUDGET SUMMARY STORM DRAINAGE FUND (in thousands of dollars) BUDGET (as of 12-31-12) ** Excludes encumbrances and reappropriation 8 of 23 4/10/2013 ATTACHMENT A, EXHIBIT 1 ACTUALS Adopted Adjusted Midyear Midyear Pre- % of Budget Budget Budget Changes Encumbr Encumbr Actual Midyear Budget Sources of Funds Net Sales 13,430 13,430 13,430 - 10,910 81% Interest Income 415 415 415 - 195 47% Other Income 8,618 8,618 8,618 - 8 0% Reapprop/Encumbrances 8,042 8,042 - Total Sources 22,463 30,505 30,505 - - - 11,113 49%** Uses of Funds Salaries and Benefits 9,797 9,784 9,774 (10) 3 333 4,432 49% Contract Services 1,928 3,476 3,476 51 1,332 2,082 100% Supplies and Materials 1,422 1,830 1,830 655 36% Facility and Equipment Purchases 10 10 10 0% General Expenses 414 414 414 455 110% Rents and Leases - 0% Allocated Charges 4,642 4,642 4,642 2,456 53% Debt Service 823 823 823 0% Subtotal 19,036 20,979 20,969 (10) 54 1,665 10,080 56% Operating Transfers Out 12 12 27 15 6 22% Capital Improvement Program 2,643 8,730 8,730 - 2,616 2,898 1,472 80% Total Uses 21,691 29,721 29,726 5 2,670 4,563 11,558 63% Net To (From) Reserves 772 784 779 (5) Beginning Reserves 4,949 9,949 9,949 - Projected Ending Reserves 5,721 10,733 10,728 (5) ** Excludes encumbrances and reappropriation CITY OF PALO ALTO FISCAL YEAR 2013 MIDYEAR BUDGET SUMMARY WASTEWATER TREATMENT FUND (in thousands of dollars) BUDGET (as of 12-31-12) 9 of 23 4/10/2013 ATTACHMENT A, EXHIBIT 1 ACTUALS Adopted Adjusted Midyear Midyear Pre- % of Budget Budget Budget Changes Encumbr Encumbr Actual Midyear Budget Sources of Funds Net Sales - - - - - - - 0% Interest Income - - - - - - 1 0% Other Income 310 310 310 - - - 155 50% Reapprop/Encumbrances 48 48 0% Total Sources 310 358 358 - - - 156 50%** Uses of Funds Salaries and Benefits 118 93 92 (1) - - 2 2% Contract Services 75 100 100 50 47 20 117% Supplies and Materials - - - - - - - 0% Facility and Equipment Purchases - - - - - - - 0% General Expenses 1 1 1 - - - - 0% Rents and Leases - - - - - - - 0% Allocated Charges 109 109 109 - - - 54 50% Debt Service - - - - - - - 0% Subtotal 303 303 302 (1) 50 47 76 57% Operating Transfers Out - - - - - - - 0% Capital Improvement Program - - - - - - - 0% Total Uses 303 303 302 (1) 50 47 76 57% Net To (From) Reserves 7 55 56 1 Beginning Reserves - - - Projected Ending Reserves 7 55 56 1 ** Excludes encumbrances and reappropriation CITY OF PALO ALTO FISCAL YEAR 2013 MIDYEAR BUDGET SUMMARY AIRPORT FUND (in thousands of dollars) BUDGET (as of 12-31-12) 10 of 23 4/10/2013 ATTACHMENT A, EXHIBIT 1 FY 2013 Category Amount Description GENERAL FUND Sales Taxes 819,000$ Increased sales tax revenue Property Taxes 350,000 Increased secured property tax revenue and supplemental Property Taxes 169,000 Change to property tax administrative fees Property Taxes (32,000) Reduced revenue from airplane taxes Property Taxes 119,000 Increased Motor Vehicle In‐lieu Fee revenue Transient Occupancy Tax 848,000 Increased transit occupancy tax revenue Utility Users Tax 100,000 Increased revenue from telephone tax Utility Users Tax (6,000) Decreased non‐telephone Utility's User tax Documentary Transfer Tax 1,722,000 Increased Documentary Transfer Tax Return on Investment (185,000) Reduced Interest Income Charges for Services (449,339) Remove Development Center revenues placeholder from budget Transfer fr Other Funds 401 Tech Fee transfer to GF for IT projects ‐ one time 3,455,062 Contract Services 449,105 Remove negative placeholder in the FY2013 budget for PAAS reduction General Expense 428,180 Golf Course Improvement COP refinancing ‐ capital lease Transfer to Other Funds 11,886 SAP license increase portion not covered by Tech Fee ‐ one time Transfer to Other Funds (428,180) Golf Course Improvement COP refinancing additional item Transfer to Other Funds 96,556 Transfer to Utility Funds for settlement to waive permit charges 557,547 2,897,515$ Charges for Services $7,500 Increased revenue due to property easement revenues received but not budgeted Other Revenue 6,585 Increased sale of salvage revenue due to current year trends Other Revenue 7,402 Increased revenue from Treasury admin received but not budgeted Trasfer fm Other Funds 30,000 Revenues from parking funds to cover increased parking support expense Trasfer fm Other Funds 15,000 Transfer funds from CIP to cover temporary salaries to work on parking issues 66,487 Salary and Benefits ($1,000) Adjust Retiree Medical ARC Salary and Benefits 45,000 Temporary salaries for parking support General Expense 10,400 Transfer of Management training budgets to departments General Expense 63,722 Bankcard service charges Contract Services 46,081 Contract services for Purchasing Division‐ help with library project Contract Services 50,000 Contract services for Purchasing Division‐ quantitative data analysis 214,203 (147,716)$ Net Changes To (From) Reserves Use Changes CITY OF PALO ALTO Midyear Detail Changes, Fiscal Year 2013 NON‐DEPARTMENTAL Source Changes Use Changes Net Changes To (From) Reserves ADMINISTRATIVE SERVICES Source Changes 11 of 23 4/10/2013 ATTACHMENT A, EXHIBIT 1 FY 2013 Category Amount Description CITY OF PALO ALTO Midyear Detail Changes, Fiscal Year 2013 CITY ATTORNEY Salary and Benefits 1,000$ Adjust Retiree Medical ARC 1,000 Transfer of Management training budgets to departments 2,000 (2,000)$ CITY AUDITOR Salary and Benefits 18,163$ Addition of 0.50 FTE Performance Auditor Salary and Benefits (8,493) Elimination of Temp Salaries Budget General Expense 1,000 Transfer of Management training budgets to departments 10,670 (10,670)$ CITY CLERK Contract Services 26,000$ Increase in contract for minutes transciption Transfer to Other Funds 20,000 IT allocated cost for automated Form 700 system 46,000 (46,000)$ Salary and Benefits (1,000)$ Adjust Retiree Medical ARC General Expense 950 Transfer of Management training budgets to departments (50) 50$ CITY COUNCIL Salary and Benefits 1,000$ Adjust Retiree Medical ARC 1,000 (1,000)$ Net Changes To (From) Reserves Use Changes Use Changes Net Changes To (From) Reserves Use Changes Net Changes To (From) Reserves Use Changes Net Changes To (From) Reserves CITY MANAGER Use Changes Net Changes To (From) Reserves 12 of 23 4/10/2013 ATTACHMENT A, EXHIBIT 1 FY 2013 Category Amount Description CITY OF PALO ALTO Midyear Detail Changes, Fiscal Year 2013 From Other Agencies 7,920$ Contribution from Santa Clara County Arts Other Revenue 39,765 Donation from Friends of Palo Alto Children's Theater Source Changes 47,685 Salary and Benefits (2,000)$ Adjust Retiree Medical ARC Contract Services 38,000 Increased Enjoy! Catalog costs and add summer edition Contract Services 39,765 Contract personnel for Children's Theater Contract Services 7,920 Art course instruction and art services for exhibits, lectures, etc. Transfer to Other Funds 2,017 Uncollected portion of funds for turf mowers to be replaced midyear Transfer to Other Funds 30,000 Online ticketing for Children's Theater 115,702 (68,017)$ From Other Agencies 5,000$ EPA Grant Funding Charges for Services 231,080 Increase in Plan Check based on recent trends Source Changes 236,080 Salary and Benefits (26,000)$ Adjust Retiree Medical ARC Contract Services 5,000 Expenses for EPA Grant activity General Expense 15,000 Fire Chief relocation expenses General Expense (1,540) Transfer of management training funds to department budgets (7,540) 243,620$ Salary and Benefits 3,288 Reclass HR Assistant to HR Representative Salary and Benefits 9,131 Reclass Sr. HR Administrator to Manager, Employee Relations Salary and Benefits (1,000) Adjust Retiree Medical ARC 11,419 (11,419)$ Other Revenue 163$ Receipt of funds from California Pizza Kitchen donation Other Revenue 600 Receipt of funds from Parent's Club of PA & Menlo Park Other Revenue 907 Receipt of funds from Gordon Biersch donation Source Changes 1,670 Salary and Benefits 26,707$ Increase Senior Librarian from .50 FTE to 1.00 FTE Supplies and Materials 163 Expend program supplies and other purchases from California Pizza Kitchen donation Supplies and Materials 600 Expense of funds from Parent's Club of PA & Menlo Park Supplies and Materials 907 Expend program supplies and other purchases from Gordon Biersch donation 28,377 (26,707)$ Net Changes To (From) Reserves Use Changes COMMUNITY SERVICES Use Changes Net Changes To (From) Reserves FIRE Use Changes Net Changes To (From) Reserves HUMAN RESOURCES Use Changes Net Changes To (From) Reserves LIBRARY 13 of 23 4/10/2013 ATTACHMENT A, EXHIBIT 1 FY 2013 Category Amount Description CITY OF PALO ALTO Midyear Detail Changes, Fiscal Year 2013 Salary and Benefits 49,112$ Add 1.0 FTE Senior Planner Contract Services 75,000 Replenish funds for Inspection Services used for Council‐approved wireless study and hazmat study. 124,112 (124,112)$ Charges for Services 144,350 Increase in Animal Services Revenue as part of Placeholder Plan approved by Council Permits and Licenses 25,553 Increase in Animal Services Revenue as part of Placeholder Plan approved by Council Transfer fr Other Funds 174,485$ Transfer from Animal Services Donations Fund as part of Placeholder Plan approved by Council Source Changes 344,388 Salary and Benefits (18,000)$ Adjust Retiree Medical ARC Salary and Benefits (7,125) Animal Services Temp Salaries reduction as part of Placeholder Plan approved by Council Salary and Benefits (97,594) Elimination of 1.0 FTE Animal Services Supervisor and 1.0 FTE Animal Control Officer as part of Placeholder Plan approved by Council Salary and Benefits 49,200 Addition of 1.0 FTE Senior Administrator General Expense 1,700 Transfer of Management training budgets to departments (71,819) 416,207$ Reimbursements (40,000)$ Reduced revenue for surveying services (now contracted) and inspection services (Utilities uses their own staff). Permits 53,500 Increase revenue to reflect actuals for street open permits Source Changes 13,500 Salary and Benefits 2,000$ Adjust Retiree Medical ARC Supplies and Materials (8,542) Remove supplies for maintenance and custodial due to Mitchell Park delayed opening. Contract Services (52,159) Remove contract services for maintenance and custodial due to Mitchell Park delayed opening. Contract Services 60,000 Increase for engineering cost estimation work for projects for polling for possible bond measure. General Expense 30,640 Transfer of Management training budgets to departments 31,939 (18,439)$ Total General Fund Changes to BSR 3,101,312$ PLANNING & COMMUNITY Use Changes Net Changes To (From) Reserves POLICE Use Changes Net Changes To (From) Reserves PUBLIC WORKS Use Changes Net Changes To (From) Reserves 14 of 23 4/10/2013 ATTACHMENT A, EXHIBIT 1 FY 2013 Category Amount Description CITY OF PALO ALTO Midyear Detail Changes, Fiscal Year 2013 Other Revenue $ 84,295 Check received from McNellis Partners for reimbursement for work related to PE‐86070 Street Maintenance Transfer fr Other Funds 106,700 Reimbursement to General Fund from Univ. Ave. Parking District ‐ Lot J repairs Source Changes 190,995 CIP 84,295$ Adjust PE‐86070 Street Maintenance for check received CIP (100,000) Close AS‐10001 Sustainability Contingency CIP (15,000) Reduce PL‐12000 Transportation and Parking Improvements to cover transfer to the General Fund for temporary salaries to administer parking permit program CIP 240,000 Increase PE‐09006 Mitchell Park Library and Community Center New Construction for emergency sole source contract to provide construction services at Mitchell Park library CIP 106,700 Increase PF‐10002 for Lot J repairs Transfer to Other Funds 15,000 Transfer to General Fund for temporary salaries to administer parking permit program CIP (3,625,000) Reduce LB‐11000 Furniture and Technology for Library Projects to reflect donations actually received CIP 30,293 Portion of cost of Bobcat purchase not previously collected through allocations for CIP PO‐89003 General Expense (8,850) Transfer of management training funds to department/fund budgets Use Changes (3,272,562) 3,463,557$ Capital Fund Infrastructure ReserveNet Changes To (From) Reserves GENERAL FUND CIP 15 of 23 4/10/2013 ATTACHMENT A, EXHIBIT 1 FY 2013 Category Amount Description ENTERPRISE FUNDS UTILITIES ADMIN Salary and Benefits (3,280)$ Transfer of management training funds to department budgets Use Changes (3,280) Net Changes To (From) Reserves $ (3,280) Fund Balancing Entries $ (3,280) Change in Fund Balance Total Utilities Administration Fund $ (3,280) ELECTRIC FUND Revenue $ 35,590 Revenues from hydro resources in the ancillary services markets have been greater than projected. Offset by reduced carbon allowance revenue due to lower than anticipated auction prices. Transfer fm Other Funds 263,076 Return of funding from Technology CIPs TE‐10001 Utilities Customer Billing System Continuous Improvements, and TE‐ 11003 Recurring Credit Card Payment Source Changes 298,666 Salary and Benefits $ (32,000) Adjust Retiree Medical ARC Salary and Benefits (2,380) Transfer of management training funds to department budgets Commodity Purchases (6,860,730) To reflect the most current forecasted electric commodity costs. Major contributors to the budget reduction include a delay in the online date for one renewable energy project and savings in transmission costs over the original budget forecast. CIP (1,397,465) Reduction in EL‐02010 appropriation for capital projects due to SCADA sytem projected to come in under budget Transfer to Other Funds 132,185 Fund's portion of SAP adjustment Use Changes (8,160,390) Net Changes To (From) Reserves $ 8,459,056 Fund Balancing Entries $ 8,459,056 Change in Fund Balance Total Electric Fund $ 8,459,056 CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S 2013 PROPOSED BUDGET 16 of 23 4/10/2013 ATTACHMENT A, EXHIBIT 1 FY 2013 Category Amount Description CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S 2013 PROPOSED BUDGET FIBER OPTICS FUND Transfer fm Other Funds 837$ Return of funding from Technology CIPs TE‐10001 Utilities Customer Billing System Continuous Improvements, and TE‐ 11003 Recurring Credit Card Payment Source Changes 837 Salary and Benefits $ (1,100) Transfer management training funds to department budgets Transfer to Other Funds 3,694 Fund's portion of SAP adjustment Use Changes $ 2,594 Net Changes To (From) Reserves $ (1,757) Fund Balancing Entries $ (1,757) Change in Fund Balance Total Fiber Optics Fund $ (1,757) GAS FUND 7 Revenue $ (461,000) Reduction in gas retail sales due lower gas supply transportation cost. Transfer fm Other Funds 111,584 Return of funding from Technology CIPs TE‐10001 Utilities Customer Billing System Continuous Improvements, and TE‐ 11003 Recurring Credit Card Payment additional item Transfer fm Other Funds 5,278 Transfer from General Fund for settlement to waive permit charges Source Changes (344,138) Salary and Benefits $ (15,000) Adjust Retiree Medical ARC Salary and Benefits (820) Transfer of management training funds to department budgets Salary and Benefits 16,919 Change WGW Supervisor to Utilities Supervisor per the Management Compensation Plan Commodity Purchases (762,000) Increases in PG&E's local gas transmission costs are delayed pending a California Public Utilities Commission (CPUC) review. CIP 315,000 New project GS‐13003 COBUG Upgrade CIP (717,915) Reduction in appropriation for capital projects Transfer to Other Funds 58,329 Uncollected portion of funds for purchase of asphalt patch truck Transfer to Other Funds 38,521 Fund's portion of SAP adjustment Use Changes (1,066,966) Net Changes To (From) Reserves $ 722,828 Fund Balancing Entries $ 722,828 Change in Fund Balance Total Gas Fund $ 722,828 17 of 23 4/10/2013 ATTACHMENT A, EXHIBIT 1 FY 2013 Category Amount Description CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S 2013 PROPOSED BUDGET Transfer fm Other Funds 34,258$ Return of funding from Technology CIPs TE‐10001 Utilities Customer Billing System Continuous Improvements, and TE‐ 11003 Recurring Credit Card Payment additional item Transfer fm Other Funds 35,178 Transfer from General Fund for settlement to waive permit charges Source Changes 69,436 Salary and Benefits $ (5,000) Adjust Retiree Medical ARC Salary and Benefits (150) Transfer management training funds to department budgets Salary and Benefits 10,574 Change WGW Supervisor to Utilities Supervisor per the Management Compensation Plan CIP (540,000) Reduction in appropriation for capital projects Transfer to Other Funds 69,641 Uncollected portion of funds for purchase of two new VacCon trucks Transfer to Other Funds 16,094 Fund's portion of SAP adjustment Use Changes (448,841) Net Changes To (From) Reserves $ 518,277 Fund Balancing Entries $ 518,277 Change in Fund Balance Total Wastewater Collection Fund $ 518,277 WASTEWATER COLLECTION FUND 18 of 23 4/10/2013 ATTACHMENT A, EXHIBIT 1 FY 2013 Category Amount Description CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S 2013 PROPOSED BUDGET WATER FUND 7 Other Revenue $ 6,965 Check received from McNellis Partners for reimbursement for work related to WS‐11004 Water Supply Improvements Transfer from Other Funds 64,053 Return of funding from Technology CIPs TE‐10001 Utilities Customer Billing System Continuous Improvements, and TE‐ 11003 Recurring Credit Card Payment additional item Transfer from Other Funds 56,100 Transfer from General Fund for settlement to waive permit charges Source Changes 127,118 Salary and Benefits $ (9,000)Adjust Retiree Medical ARC Salary and Benefits (770) Transfer of management training funds to department budgets Salary and Benefits 21,312 Change WGW Supervisor to Utilities Supervisor per the Management Compensation Plan CIP 6,965 Adjust WS‐11004 Water Supply Improvements for check received CIP (4,858,545) Reduction in appropriation for capital projects Transfer to Other Funds 350,000 For purchase of Hydro Excavator for which no replacement costs have previously been collected. Transfer to Other Funds 37,730 Fund's portion of SAP adjustment Use Changes (4,452,308) Net Changes To (From) Reserves $ 4,579,426 Fund Balancing Entries $ 4,579,426 Change in Fund Balance Total Water Fund $ 4,579,426 AIRPORT FUND Salary and Benefits $ (1,000) Transfer management training funds to department budgets Use Changes $ (1,000) Net Changes To (From) Reserves $ 1,000 Fund Balancing Entries $ 1,000 Change in Fund Balance Total Airport Fund $ 1,000 19 of 23 4/10/2013 ATTACHMENT A, EXHIBIT 1 FY 2013 Category Amount Description CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S 2013 PROPOSED BUDGET REFUSE FUND Transfer fr Other Funds $ 17,159 Close CIP TE‐11003, return funds to original sources Transfer fr Other Funds 45,860 Close CIP TE‐10001, return funds to original sources Source Changes $ 63,019 Salary and Benefits $ (2,000) Adjust Retiree Medical ARC Salary and Benefits (5,530) Transfer management training funds to department budgets Transfer to Other Funds 69,671 Underfunded portion for purchase of skip loader and all terrain vehicle for landfill transportation Transfer to Other Funds 29,814 Fund's portion of SAP adjustment Use Changes 91,955 Net Changes To (From) Reserves $ (28,936) Fund Balancing Entries $ (28,936) Change in Fund Balance Total Refuse Fund $ (28,936) STORM DRAINAGE FUND Transfer fr Other Funds $ 3,668 Close CIP TE‐11003, return funds to original sources Transfer fr Other Funds 9,805 Close CIP TE‐10001, return funds to original sources Source Changes 13,473 Salary and Benefits $ (1,000) Adjust Retiree Medical ARC Salary and Benefits (1,870) Transfer management training funds to department budgets Transfer to Other Funds 5,805 Fund's portion of SAP adjustment Use Changes 2,935 Net Changes To (From) Reserves $ 10,538 Fund Balancing Entries $ 10,538 Change in Fund Balance Total Storm Drainage Fund $ 10,538 WASTEWATER TREATMENT FUND Salary and Benefits $ (3,000) Adjust Retiree Medical ARC Salary and Benefits (13,220) Transfer management training funds to department budgets additional item Salary and Benefits 5,873 Reclass Program Asst I to Prog Asst II Transfer to Other Funds 14,924 Fund's portion of SAP adjustment Use Changes 4,577 Net Changes To (From) Reserves (4,577) Fund Balancing Entries (4,577) Change in Fund Balance Total Wastewater Treatment Fund (4,577) 20 of 23 4/10/2013 ATTACHMENT A, EXHIBIT 1 FY 2013 Category Description Transfer to Other Funds 106,700$ Reimbursing General Fund for 1/2 Lot J Structural Repairs Use Changes 106,700 (106,700)$ Transfer to Other Funds 30,000$ Transfer funds to cover the cost of temporary salaries for parking support Use Changes 30,000 (30,000)$ Transfer fm Other Funds (428,180)$ Transfer from General Fund Source Changes (428,180) General Expense (428,180)$ Golf Course Improvement COP retired principal and interest Use Changes (428,180) ‐$ Transfer from Other Funds 579,951$ Revenues from other funds for purchase of underfunded vehicles 579,951 Salary and Benefits (4,000)$ Adjust Retiree Medical ARC Salary and Benefits (2,530) Transfer management traininig funds to department budgets Contract Services 35,000 To cover a more comprehensive Fleet organizational study than originally budgeted CIP 1,847,460 VR‐13000 vehicle purchases Transfer to Other Funds 3,731 Fund's portion of SAP adjustment Use Changes 1,879,661 (1,299,710)$ UNIV. AVE. PARKING DISTRICT FUND Net Changes To (From) Reserves RESIDENTIAL PARKING PERMIT FUND Net Changes To (From) Reserves DEBT SERVICE FUNDS GOLF COURSE DEBT SERVICE FUND Net Changes To (From) Reserves VEHICLE REPLACEMENT FUND Source Changes Net Changes To (From) Reserves SPECIAL REVENUE FUNDS CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S 2013 PROPOSED BUDGET Amount 21 of 23 4/10/2013 ATTACHMENT A, EXHIBIT 1 FY 2013 Category Description CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S 2013 PROPOSED BUDGET Amount Transfer fr Other Funds 20,000$ Revenue for Form 700 automation Transfer fr Other Funds 30,000 Revenue for online Children's Theater ticketing Transfer fr Other Funds 275,729 Revenue from other funds for SAP increased licensing expense Source Changes 325,729 Salary and Benefits (3,000)$ Adjust Retiree Medical ARC Salary and Benefits (2,550) Transfer management training funds to department budgets Contract Services 333,481 Replenish cost of SAP adjustment Contract Services 79,602 SAP maintenance for additional licenses Contract Services 20,000 Automating Form 700 for FPPC filings Contract Services 75,000 Additional features for Civica, including intranet, internet, and Development Services Contract Services 30,000 Online ticketing for Children's Theater Transfer to Other Funds 400,000 Close CIP TE‐10001 (Utility billing), return funds to sources Transfer to Other Funds 150,000 Close CIP TE‐11003 (Recurring credit card payment), return funds to sources Use Changes 1,082,533 (756,804)$ Salary and Benefits (100)$ Transfer management training funds to department budgets Transfer to Other Funds 298 Fund's portion of SAP adjustment Use Changes 198 198$ Charges to Other Funds (114,000)$ Charges to other funds Source Changes (114,000) Salary and Benefits (114,000)$ Retiree medical ARC Use Changes (114,000) ‐$ Grants 105,397$ Annual COPS Grant allocation Source Changes 105,397$ Equipment 105,397$ Expense for grant funded equipment Use Changes 105,397 ‐$ PRINTING AND MAILING Net Changes To (From) Reserves RETIREE MEDICAL Net Changes To (From) Reserves LAW ENFORCEMENT SERVICES FUND Net Changes To (From) Reserves Net Changes To (From) Reserves INFORMATION TECHNOLOGY FUND 22 of 23 4/10/2013 ATTACHMENT A, EXHIBIT 1 FY 2013 Category Description CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S 2013 PROPOSED BUDGET Amount Donation 34,486$ Anonymous donation for Volunteer Coordinator Donation 47,000 Donation from Santa Clara County Donation 92,999 Other general donations for Animal Services Source Changes 174,485$ Transfer to Other Funds 174,485$ Transfer to General Fund for Animal Services Placeholder Plan Use Changes 174,485 ‐$ PUBLIC SERVICES DONATION FUND Net Changes To (From) Reserves 23 of 23 4/10/2013 Attachment A, Exhibit 2 Project Funding Title Number Revenue Expense Source Comments ADDITIONAL APPROPRIATIONS Street Maintenance PE-86070 $ 84,295 $ 84,295 Other revenue The City received a check in the amount of $91,260 from McNellis Partners for the median (Alma Village) for reimbursement for work that was performed by a City contractor per agreement with the private developer. The contract was funded from PE-86070 and WS-11004, the work has been completed and reimbursment was received by the City. This adjustment will reimburse those projects. Lot J Structure Repair PF-10002 $ 106,700 $ 106,700 Univ. Ave. Parking Permit Fund Reimbursement from the University Ave. Parking Permit Fund for Lot J repairs. Sidewalk Repairs PO-89003 $ 30,293 Infrastructure Reserve Portion of cost of Bobcat purchase not previously collected through allocations for CIP PO-89003 Mitchell Park Library and Community Center New Construction PE-09006 $ 240,000 Infrastructure Reserve Funding is needed for an emergency sole source contract to provide construction services at Mitchell Park library Total $ 190,995 $ 461,288 REDUCTION IN APPROPRIATIONS/TO CLOSE PROJECTS Transportation and Parking Improvements PL-12000 $ (15,000) Infrastructure Reserve Reduction to cover transfer to the General Fund for temporary salaries to administer parking permit program Furniture and Technology for Library Projects LB-11000 $ (3,625,000) Infrastructure Reserve From FY 2011 to FY 2013, $6,000,000 had been approved for this project to be funded by donations. However, $2,375,000 has been received for this project which is being reduced to reflect the amount actually received. Sustainability Contingency AS-10001 $ (100,000) Infrastructure Reserve To close project due to inactivity Total $ (3,740,000) TOTAL GENERAL FUND CIP MID-YEAR ADJUSTMENTS $ 190,995 $ (3,278,712) REDUCTION IN APPROPRIATIONS/TO CLOSE PROJECTS SCADA System Upgrade EL-02010 $ (140,000) Electric Fund Distribution RSR It is projected that this project will be completed by the end of FY 2013. The cost for upgrading of the SCADA system came in below estimated amounts and these funds are not required. The remaining funds are adequate to complete the project with a contingency for unforeseen work. Electric Utility GIS EL-02011 $ (50,000) Electric Fund Distribution RSR Original project scope is essentially completed. Funds are still required for the ongoing maintenance contract. If any additional scope for this project is identified it will be requested at a later budget process. Middlefield / Colorado 4/12 kV Conversion EL-09002 $ (40,078) Electric Fund Distribution RSR This project is completed and no additional work is planned. Close project. Reconductor 60kV OH Transmission System EL-11015 $ (400,000) Electric Fund Distribution RSR The scope of work for this project has been reduced because of the uncertainty related to the construction of the Performing Arts Center (and related buildings) and the impact this construction will have on the existing transmission line in the area. Funding to reconductor the Quarry-Hopkins transmission line will be requested at a later date when development plans for the area are more concrete. FY 2013 CIP Mid-Year Adjustments CAPITAL PROJECT FUND ELECTRIC FUND 1 of 4 3/27/2013 Attachment A, Exhibit 2 Project Funding Title Number Revenue Expense Source Comments FY 2013 CIP Mid-Year Adjustments Electric Vehicle Charging Infrastructure EL-11016 $ (117,387) Electric Fund Distribution RSR This project is completed and no additional work is planned. Close project. Hopkins Substation Rebuild EL-12003 $ (250,000) Electric Fund Distribution RSR Staff is reevaluating the need and timing of this upgrade. The work at Colorado and Hopkins Substations are somewhat related due their proximity to one another and impact to the overall area electric service master plan. Preliminary load projections indicate that this work will not be required before FY 2015. Funding for this project or any iteration of such shall be resubmitted for approval. Colorado 20/21 - Transformer Replacements EL-13005 $ (100,000) Electric Fund Distribution RSR Staff is reevaluating the need and timing of this upgrade. The work at Colorado and Hopkins Substations are somewhat related due their proximity to one another and impact to the overall area electric service master plan. Preliminary load projections indicate that this work will not be required before FY 2015. Funding for this project or any iteration of such shall be resubmitted for approval. Communications System Improvements EL-89031 $ (300,000) Electric Fund Distribution RSR This continuous improvement project for the communication system has been placed on hold due to higher priority projects and limited staffing. Total $ - $ (1,397,465) TOTAL ELECTRIC FUND CIP MID-YEAR ADJUSTMENTS $ - $ (1,397,465) ADDITIONAL APPROPRIATIONS Cooperatively-Owned Backup Generators (COBUG Upgrade)- (New Project) (Exhibit B-1) GS-13003 $ 315,000 Gas Fund Distribution RSR This project is to add emissions equipment to the Cooperatively-owned Backup Generators (COBUGs), four City-owned generators. The generators are required to comply with new Federal Environmental Protection Agency (EPA) emissions rules for internal combustion engines by October 2013. Total $ - $ 315,000 REDUCTION IN APPROPRIATIONS/TO CLOSE PROJECTS GMR - Project 18 GS-08011 $ (250,000) Gas Fund Distribution RSR The construction phase of this project is completed and a portion of the funds could be returned to the reserves. The remaining funds is needed to close out the project, including as-builting, surveying, and mapping. GMR - Project 22 GS-12001 $ (467,915) Gas Fund Distribution RSR This project has been deferred out to FY 2015. Gas main replacement projects 19B/20/21 will begin in the second half of FY 2013 and will take approximately three years to complete. Total $ - $ (717,915) TOTAL GAS FUND CIP MID-YEAR ADJUSTMENTS $ - $ (402,915) GAS FUND 2 of 4 3/27/2013 Attachment A, Exhibit 2 Project Funding Title Number Revenue Expense Source Comments FY 2013 CIP Mid-Year Adjustments ADDITIONAL APPROPRIATIONS Water Supply System Improvements WS-11004 $ 6,965 $ 6,965 Other revenue The City received a check in the amount of $91,260 from McNellis Partners for the median (Alma Village) for reimbursement for work that was performed by a City contractor per agreement with the private developer. The contract was funded from PE-86070 and WS-11004, the work has been completed and reimbursment was received by the City. This adjustment will reimburse those projects. Total $ 6,965 $ 6,965 REDUCTION IN APPROPRIATIONS/TO CLOSE PROJECTS Water Recycling Facilities WS-07001 $ (200,000) Water Fund Distribution RSR The recycled water project has experienced significant delays and remains in the environmental review process. There are sufficient funds to complete the environmental documents. Until the environmental documents are complete and the project financial plan has been approved, surplus funds are not required and are being returned. Emergency Water Supply Project WS-08002 $ (1,000,000) Utility Revenue Bonds El Camino reservoir construction is 65% complete. Mayfield Pump Station construction 75% complete. Wells rehabilitation construction 90% complete. There is sufficient budget encumbered and available to complete the remaining projects. WMR - Project 22 WS-08017 $ (141,639) Water Fund Distribution RSR This project is completed and no additional work is planned. Close project. WMR-Project 24 WS-10001 $ (200,000) Water Fund Distribution RSR Construction contract has been awarded including contingency for any unforeseen work outside of scope. Return remaining available budget. WMR-Project 25 WS-11000 $ (2,736,906) Water Fund Distribution RSR This project has been deferred out to FY 2014. Water main replacement projects 23 and 24 are scheduled to be completed in FY 2014. The BID for Project 25 is scheduled to go out in the beginning of FY 2015. WMR-Project 26 WS-12001 $ (305,000) Water Fund Distribution RSR The design phase of this project is deferred out to FY 2014 in conjunction with the delay of project 25. Vacuum Excavation Equipment WS-11001 $ (275,000) Water Fund Distribution RSR To close project; equipment will be purchased from VR-13000 Total $ - $ (4,858,545) TOTAL WATER FUND CIP MID-YEAR ADJUSTMENTS $ 6,965 $ (4,851,580) REDUCTION IN APPROPRIATIONS/TO CLOSE PROJECTS WC Reh/Aug. Prj 20 WC-07004 $ (150,000) Wastewater Collection Fund RSR The construction phase of this project is completed and a portion of the funds could be returned to the reserves. The remaining funds is needed to close out the project, including as-builting, surveying, and mapping. WC Reh/Aug. Prj 21 WC-08012 $ (80,000) Wastewater Collection Fund RSR The construction phase of this project is completed and a portion of the funds could be returned to the reserves. The remaining funds is needed to close out the project, including as-builting, surveying, and mapping. WC Reh/Aug. Prj 26 WC-13001 $ (310,000) Wastewater Collection Fund RSR The design phase of this project is deferred out to FY 2014 due to construction of projects 24 & 25 in FY 2013. TOTAL WASTEWATER COLLECTION FUND CIP MID-YEAR ADJUSTMENTS -$ (540,000)$ WATER FUND WASTEWATER COLLECTION FUND 3 of 4 3/27/2013 Attachment A, Exhibit 2 Project Funding Title Number Revenue Expense Source Comments FY 2013 CIP Mid-Year Adjustments ADDITIONAL APPROPRIATIONS Storm Drain System Replacement and Rehabilitation SD-06101 $ 8,474 $ 8,474 Revenue from Other Agencies Reimbursement from ABAG for trash capture device installation TOTAL STORM DRAINAGE FUND CIP MID- YEAR ADJUSTMENTS 8,474$ 8,474$ ADDITIONAL APPROPRIATIONS Scheduled Vehicle and Equipment Replacements VR-13000 $ 1,847,460 Vehicle Replacement Fund Due to the Fleet Audit, the City has deferred the annual equipment replacement CIP for 3 years with FY 2013 being the first year we began funding the program. There are numerous pieces of equipment that are in high need of replacement based on their age, condition, downtime and impacts to the departments. This midyear request has been reviewed and approved by the Fleet Review Committee. The purchases include two flush trucks that operate 24/7 to maintain the sewer system and respond to overflows; an asphalt patch truck; a vacuum digging truck to provide non invasive excavation around gas, water and sewer lines; two lawn mowers to address the on-going mowing requirements at city facilities and the school play fields; a bobcat used for sidewalk maintenance; a skip loader and a small 4-wheel transport vehicle that can carry 2 staff plus toolsto support post- closure activities at the landfill. TOTAL VEHICLE REPLACEMENT FUND CIP MID-YEAR ADJUSTMENTS 1,847,460$ REDUCTION IN APPROPRIATIONS/TO CLOSE PROJECTS Utilities Customer Billing System Continuous Improvements TE-10001 (400,000)$ Various Enterprise Funds The projected costs to implement the legal and legislative requirements in the Utilities billing system were less than expected as a result of either satisfying these requirements internally; using an efficient yet scaled down approach; or legislation was postponed for further clarification and development. Similarly, enhancements and functionality related work was either satisfied using our internal resources; planned work was delayed as part of a change in strategic direction; or as a result of a change in business prioritization. The remaining funds are adequate to satisfy unforeseen work. Recurring Credit Card Payment TE-11003 (150,000)$ Various Enterprise Funds This project has been placed on hold due to insufficient SAP resources and competing priorities. Also, the SAP PMO team will be requesting a city-wide payment strategy that captures many of the City’s payment requirements TOTAL TECHNOLOGY FUND CIP MID-YEAR ADJUSTMENTS (550,000)$ VEHICLE REPLACEMENT FUND TECHNOLOGY FUND STORM DRAINAGE FUND 4 of 4 3/27/2013 - 1 -City of Palo Alto Fiscal Year 201ϯ ĚŽƉƚed Budget GS-13003Cooperatively-owned Backup Generators (COBUGs)NEW COOPERATIVELY-OWNED BACKUP GENERATORS (COBUGS) (GS-13003) CIP FACTS: • Project Type: Nonrecurring • Project Stage: Pre-Design • Est. Timeline: Spring 2013-Winter 2014 • Managing Department: Utilities IMPACT ANALYSIS: • Environmental: This project is categorically exempt from CEQA under Section 15301 • Design Elements: This project may be subject to staff-level ARB review. • Operating: This project will enable continued operation of the COBUG generating units Description: This project is to add emissions equipment to the Cooperatively-owned Backup Generators (COBUGs), four City-owned generators located at the Municipal Services Center. Justification: The COBUG generators are normally only run for testing purposes, but they have been a cost effective way of fulfilling the Local Resource Adequacy requirements imposed by the California Independent System Operator (CAISO), which require the electric utility to provide a certain amount of generating capacity in transmission- constrained areas. Supplemental Information: The generators are run by internal combustion engines fueled by natural gas, and are required to comply with new Federal Environmental Protection Agency (EPA) emissions rules for internal combustion engines by October 2013. Relationship to Comprehensive Plan Primary Connection • Element: Natural Environment • Section: Air Quality • Goal: N-5 • Policy: N-26 Expenditures FY 201ϯ FY 201ϰ FY 201ϱ FY 201ϲ FY 201ϳ Total Salaries and Benefits Design Costs Construction Costs $315,000 $315,000 Other Total Budget Request $315,000 $315,000 Revenues FY 201ϯ FY 201ϰ FY 201ϱ FY 201ϲ FY 201ϳ Total Gas Fund $315,000 $315,000 Total Sources of Funds $315,000 $315,000 ATTACHMENT A, EXHIBIT 2-A Page 1 of 1 ATTACHMENT A, EXHIBIT 3 Amendments to FY 2013 Table of Organization FY 2009 Actuals FY 2010 Actuals FY 2011 Actuals FY 2012 Adopted Budget FY 2013 Adopted Budget FY 2013 Midyear Changes FY 2013 Adjusted GENERAL FUND Administrative Services Accountant 3.00 2.00 2.00 2.00 2.00 2.00 Acct Spec 11.00 8.00 7.00 7.00 7.00 7.00 Acct Spec‐Lead 5.00 5.00 5.00 5.00 5.00 5.00 Admin Assistant 0.93 0.93 0.93 0.93 1.00 1.00 Administrative Associate III 0.96 0.96 0.00 1.00 1.00 1.00 Asst Director Adm Svcs* 0.60 0.60 0.60 1.50 1.70 0.10 1.80 Budget Officer 0.00 0.00 0.00 1.00 0.00 0.00 Business Analyst 0.10 0.10 0.00 0.00 0.00 0.00 Buyer 1.95 1.95 1.95 1.95 1.95 1.95 Chief Budget Officer 1.00 1.00 1.00 1.00 0.00 0.00 Contracts Administrator 2.00 2.00 1.40 1.40 1.40 1.40 Deputy Dir Adm Svcs 0.80 0.80 0.80 0.00 0.00 0.00 Dir Adm Svcs/Chief Financial Officer* 0.50 0.50 0.50 0.50 0.50 0.05 0.55 Director, Office of Management and Budget 0.00 0.00 0.00 0.00 1.00 1.00 Graphic Designer 1.00 1.00 1.00 0.00 0.00 0.00 Mgr Accounting 1.00 1.00 1.00 1.00 1.00 1.00 Mgr Pur & Cntr Admin 1.00 1.00 1.00 1.00 1.00 1.00 Mgr Real Property 1.00 1.00 1.00 1.00 1.00 1.00 Payroll Analyst 2.00 2.00 2.00 2.00 2.00 2.00 Principal Financial Analyst 0.00 0.00 0.00 0.00 1.00 1.00 Sr. Accountant 4.00 3.00 3.00 3.00 3.00 3.00 Sr. Business Analyst 0.20 0.20 0.00 0.00 0.00 0.00 Sr. Financial Analyst 7.91 6.91 5.81 4.91 6.10 6.10 Storekeeper 1.00 0.00 0.00 0.00 0.00 0.00 Storekeeper‐L 1.00 1.00 1.00 1.00 1.00 1.00 Warehouse Supv 1.00 1.00 0.50 0.50 0.50 0.50 Total Administrative Services 48.95 41.95 37.49 37.69 39.15 0.15 39.30 City Auditor Admin Assistant 1.00 1.00 1.00 1.00 1.00 1.00 City Auditor 1.00 1.00 1.00 1.00 1.00 1.00 Performance Auditor 0.00 0.00 0.00 0.00 0.00 0.50 0.50 Sr. Performance Auditor 2.00 2.00 2.00 2.00 2.00 2.00 Total City Auditor 4.00 4.00 4.00 4.00 4.00 0.50 4.50 Community Services Admin Assistant 1.00 1.00 1.00 1.00 1.00 1.00 Administrative Associate I 2.50 2.00 0.00 0.00 0.00 0.00 Administrative Associate III 0.00 0.75 0.75 0.75 0.75 0.75 Arts & Culture Div Mgr 1.00 1.00 1.00 1.00 0.00 0.00 Assistant Director CSD 0.00 0.00 0.00 0.00 1.00 1.00 Bldg Serviceperson 4.00 4.00 2.00 2.00 2.00 2.00 Bldg Serviceperson‐L 2.00 2.00 2.00 2.00 2.00 2.00 Community Services Manager* 0.00 0.00 0.00 0.00 0.00 6.00 6.00 Community Services Senior Program Manager* 1.00 1.00 1.00 1.00 1.00 2.00 3.00 Community Services Superintendent* 1.00 1.00 1.00 1.00 0.00 2.00 2.00 Coord Child Care 1.00 1.00 0.00 0.00 0.00 0.00 Coord Rec Prog 5.00 5.00 4.50 4.00 4.00 4.00 Cub Ctr & Hum Svc Div Mgr 1.00 1.00 0.00 0.00 0.00 0.00 Page 1 of 9 ATTACHMENT A, EXHIBIT 3 Amendments to FY 2013 Table of Organization FY 2009 Actuals FY 2010 Actuals FY 2011 Actuals FY 2012 Adopted Budget FY 2013 Adopted Budget FY 2013 Midyear Changes FY 2013 Adjusted Dir Comm Svcs 1.00 1.00 1.00 1.00 1.00 1.00 Division Manager, Recreations & Golf 1.00 1.00 1.00 1.00 1.00 1.00 Golf Cor Equip Mech 1.00 1.00 0.00 0.00 0.00 0.00 Golf Cor Mt Person 5.00 4.00 0.00 0.00 0.00 0.00 Inspector, Field Svc 2.00 2.00 2.00 2.00 2.00 2.00 Junior Museum & Zoo Educator 0.00 2.25 2.25 2.25 2.25 2.25 Management Assistant 1.00 1.00 1.00 1.00 1.00 1.00 Mgr Arts* 2.00 2.00 2.00 2.00 2.00 (2.00) 0.00 Open Spc & Parks Div Mgr 1.00 1.00 1.00 1.00 1.00 1.00 Park Maint ‐ Lead 1.00 1.00 1.00 1.00 1.00 1.00 Park Maint Person 11.00 11.00 6.00 6.00 6.00 6.00 Park Ranger 5.00 5.00 5.00 5.00 5.00 5.00 Parks/Golf Crew‐Lead 3.00 3.00 2.00 2.00 2.00 2.00 Prod Arts/Sci Prog 12.50 13.00 12.00 12.00 11.75 11.75 Program Assistant I 12.00 7.75 7.50 7.50 7.50 7.50 Program Assistant II 3.00 3.00 3.00 3.00 3.00 3.00 Senior Management Analyst 1.00 1.00 1.00 1.00 1.00 1.00 Sprinkler Sys Repr 5.00 5.00 4.00 4.00 4.00 4.00 Sr Ranger 1.00 0.00 0.00 0.00 0.00 0.00 Supt Parks* 1.00 1.00 1.00 1.00 2.00 (2.00) 0.00 Supv Open Space* 1.00 2.00 2.00 2.00 2.00 (2.00) 0.00 Supv Parks* 1.00 1.00 1.00 1.00 1.00 (1.00) 0.00 Supv Rec Prog* 4.00 4.00 4.00 4.00 4.00 (3.00) 1.00 Theater Specialist 1.00 1.00 1.00 1.00 1.00 1.00 Volunteer Coord 0.50 0.50 0.50 0.50 0.50 0.50 Total Community Services 96.50 94.25 74.50 74.00 73.75 0.00 73.75 Human Resources Sr. Administrator Human Resources 5.00 5.00 5.00 5.00 5.00 (1.00) 4.00 Admin Assistant 1.00 1.00 1.00 1.00 1.00 1.00 Assistant Director Human Resources 1.00 1.00 1.00 1.00 1.00 1.00 Dir Human Resources 1.00 1.00 1.00 1.00 1.00 1.00 Human Resources Rep 2.00 2.00 2.00 2.00 2.00 1.00 3.00 Human Rsrce Asst Cnf 4.00 5.00 5.00 5.00 5.00 (1.00) 4.00 Management Analyst 0.00 0.00 0.00 0.00 0.00 0.00 Mgr Employee Relations 1.00 0.00 0.00 0.00 0.00 1.00 1.00 Senior Management Analyst 1.00 1.00 1.00 1.00 1.00 1.00 Total Human Resources 16.00 16.00 16.00 16.00 16.00 0.00 16.00 Library Admin Assistant 1.00 1.00 1.00 1.00 1.00 1.00 Assistant Director, Library Services 1.00 1.00 1.00 1.00 1.00 1.00 Business Analyst 0.00 1.00 1.00 1.00 1.00 1.00 Coord Library Prog 3.00 1.00 1.00 1.00 1.00 1.00 Dir Libraries 1.00 1.00 1.00 1.00 1.00 1.00 Division Head, Library Services 1.00 1.00 1.00 1.00 1.00 1.00 Librarian 5.00 5.00 5.00 5.00 5.00 5.00 Library Associate 4.00 4.00 4.00 4.00 5.00 5.00 Library Asst 5.50 5.50 5.50 5.50 5.50 5.50 Library Services manager 4.00 4.00 4.00 4.00 4.00 4.00 Library Specialist 8.00 8.00 8.00 8.00 7.00 7.00 Management Assistant 1.00 1.00 1.00 1.00 1.00 1.00 Page 2 of 9 ATTACHMENT A, EXHIBIT 3 Amendments to FY 2013 Table of Organization FY 2009 Actuals FY 2010 Actuals FY 2011 Actuals FY 2012 Adopted Budget FY 2013 Adopted Budget FY 2013 Midyear Changes FY 2013 Adjusted Sr Librarian 9.25 8.75 7.75 7.75 7.75 0.50 8.25 Total Library 43.75 42.25 41.25 41.25 41.25 0.50 41.75 Planning and Community Environment Adm Pln & Comm Envrn 1.00 1.00 1.00 1.00 1.00 1.00 Admin Assistant 1.00 1.00 1.00 1.00 1.00 1.00 Administrative Associate I 2.00 2.00 1.00 1.50 1.00 1.00 Administrative Associate II 4.80 3.80 3.80 3.80 3.80 3.80 Administrative Associate III 1.00 1.00 1.00 1.00 1.00 1.00 Arborist 1.00 0.00 0.00 0.00 0.00 0.00 Assistant Director Planning & Comm Env 1.00 0.00 0.00 1.00 1.00 1.00 Assoc Engineer 1.00 1.00 1.00 1.00 1.00 1.00 Asst Build Official 1.00 1.00 1.00 1.00 1.00 1.00 Asst To City Mgr 0.00 0.00 0.05 0.00 0.00 0.00 Bldg Inspector 4.00 4.00 4.00 4.00 4.00 4.00 Bldg Inspector Spec 3.00 2.00 1.00 1.00 1.00 1.00 Bldg/Plg Technician 3.00 3.00 2.00 2.00 2.00 2.00 Chief Bld Official 1.00 1.00 1.00 1.00 1.00 1.00 Chief Plg Official 1.00 1.00 1.00 0.00 1.00 1.00 Chief Transp Off 0.00 0.00 1.00 1.00 1.00 1.00 Code Enforcement Off 2.00 2.00 2.00 2.00 2.00 2.00 Coor Trans Sys Mgmt 0.50 0.50 0.50 0.50 0.50 0.50 Deputy City Mgr Spec Proj 0.00 0.50 0.50 0.50 0.50 0.50 Development Center Manager 0.00 0.00 0.00 0.00 1.00 1.00 Development Project Coordinator III 0.00 0.00 0.00 0.00 3.00 3.00 Development Services Director 0.00 0.00 0.00 0.00 1.00 1.00 Dir Plan/Comm Envir 1.00 1.00 1.00 1.00 1.00 1.00 Engineer 1.00 1.00 1.00 1.00 1.00 1.00 Engr Tech II 1.00 1.00 1.00 1.00 1.00 1.00 Engr Tech III 0.00 0.00 0.00 0.00 0.00 0.00 Management Anslyst* 0.00 0.00 0.00 0.00 0.00 0.50 0.50 Mgr Economic Dev 1.00 1.00 1.00 0.00 0.00 0.00 Mgr Planning 2.00 2.00 2.00 2.00 1.00 1.00 Permit Specialist 1.00 0.00 0.00 0.00 0.00 0.00 Planner 6.00 6.05 5.75 5.75 3.75 3.75 Planning Arborist 0.00 1.00 1.00 0.00 0.00 0.00 Plans Check Engr 3.00 2.00 2.00 2.00 2.00 2.00 Plans Examiner 0.00 0.00 0.00 0.00 1.00 1.00 Project Engineer 1.00 1.00 1.00 1.00 1.00 1.00 Sr Planner 6.00 6.00 5.00 5.00 6.00 1.00 7.00 Supv Bldg Inspection 1.00 1.00 1.00 1.00 1.00 1.00 Transportation Manager 1.00 1.00 0.00 0.00 0.00 0.00 Total Planning and Community Environment 53.30 48.85 44.60 43.05 47.55 1.50 49.05 Public Safety 40‐Hr Training Captain 1.00 1.00 1.00 1.00 1.00 1.00 Admin Assistant 2.00 2.00 1.00 1.00 1.00 1.00 Administrative Associate II 7.00 7.00 7.00 7.00 7.00 7.00 Animal Control Off 4.50 4.50 4.50 4.50 4.50 (1.00) 3.50 Animal Services Spec 1.00 1.00 1.00 0.00 0.00 0.00 Animal Services Spec II 1.00 1.00 1.00 2.00 2.00 2.00 Assistant Police Chief ‐ Adv 1.00 1.00 1.00 1.00 1.00 1.00 Page 3 of 9 ATTACHMENT A, EXHIBIT 3 Amendments to FY 2013 Table of Organization FY 2009 Actuals FY 2010 Actuals FY 2011 Actuals FY 2012 Adopted Budget FY 2013 Adopted Budget FY 2013 Midyear Changes FY 2013 Adjusted Battalion Chief 56‐Hour Workweek 3.00 3.00 3.00 3.00 3.00 3.00 Business Analyst 1.00 1.00 1.00 1.00 1.00 1.00 Code Enforcement Off 1.50 1.50 1.00 1.00 1.00 1.00 Comm Tech 1.00 1.00 1.00 1.00 1.00 1.00 Community Serv Offcr 9.00 9.00 8.50 8.50 8.50 8.50 Coord Pol Tech Svcs 1.00 1.00 1.00 1.00 1.00 1.00 Court Liaison Officer 1.00 1.00 1.00 1.00 1.00 1.00 Crime Analyst 1.00 2.00 1.00 1.00 1.00 1.00 Deputy Chief/Fire Marshall 0.84 0.84 0.84 0.84 0.84 0.84 Deputy Fire Chief 2.00 2.00 2.00 2.00 2.00 2.00 Emergency Medical Svc Chief 1.00 0.00 0.00 0.00 0.00 0.00 Emergency Services Director 0.00 0.00 0.00 1.00 1.00 1.00 EMS Data Specialist 0.00 0.00 0.00 0.00 1.00 1.00 EMS Manager 1.00 1.00 1.00 1.00 1.00 1.00 Fire Apparatus Op 30.00 30.00 30.00 30.00 30.00 30.00 Fire Captain 27.00 27.00 27.00 27.00 22.00 22.00 Fire Chief 1.00 1.00 1.00 1.00 1.00 1.00 Fire Fighter 45.00 45.00 45.00 45.00 41.00 41.00 Fire Fighter Emt 3.00 0.00 0.00 0.00 0.00 0.00 Fire Inspector 3.00 3.00 3.00 3.00 4.00 4.00 GIS Specialist 0.00 0.00 0.00 0.00 1.00 1.00 Haz Mat Inspector 1.90 1.90 1.90 1.90 1.90 1.90 Haz Mat Spec 0.95 0.95 0.00 0.00 0.00 0.00 OES Coordinator 1.00 1.00 1.00 1.00 1.00 1.00 Police Agent 19.00 19.00 19.00 19.00 19.00 19.00 Police Captain‐Adv 2.00 2.00 2.00 2.00 2.00 2.00 Police Chief‐Adv 1.00 1.00 1.00 1.00 1.00 1.00 Police Lieut‐Adv 5.00 5.00 5.00 5.00 5.00 5.00 Police Officer 51.00 50.00 49.00 49.00 49.00 49.00 Police Records Specialist ‐ Lead 1.00 1.00 1.00 1.00 1.00 1.00 Police Records Specialist II 9.00 7.00 6.00 6.00 6.00 6.00 Police Sergeant 14.00 14.00 14.00 14.00 14.00 14.00 Program Assistant 0.00 0.00 0.00 0.00 1.00 1.00 Program Assistant I 1.00 0.00 0.00 0.00 0.00 0.00 Program Assistant II 1.00 1.00 1.00 1.00 1.00 1.00 Program Coordinator 0.00 1.00 0.00 0.00 0.00 0.00 Property Evid Tech 2.00 2.00 2.00 2.00 2.00 2.00 Public Safety Disp 2.00 2.00 2.00 2.00 2.00 2.00 Public Safety Dispatcher ‐ Lead 5.00 5.00 5.00 5.00 5.00 5.00 Public Safety Dispatcher II 14.00 14.00 14.00 14.00 14.00 14.00 Senior Management Analyst 1.00 1.00 1.00 1.00 1.00 1.00 2.00 Supt Animal Services 1.00 1.00 1.00 1.00 1.00 1.00 Supv Animal Svcs 1.00 1.00 1.00 1.00 1.00 (1.00) 0.00 Supv Police Service 3.00 3.00 3.00 3.00 3.00 3.00 Veterinarian 1.00 1.00 1.00 1.00 1.00 1.00 Veterinarian Tech 2.00 2.00 2.00 2.00 2.00 2.00 Volunteer Coord 1.00 0.50 0.50 0.50 0.50 0.50 Total Public Safety 290.69 284.19 277.24 278.24 273.24 (1.00) 272.24 Public Works ‐ Enterprise Funds Accountant 0.00 0.23 0.23 0.23 0.40 0.40 Acct Spec 0.00 0.46 0.46 0.46 0.45 0.45 Page 4 of 9 ATTACHMENT A, EXHIBIT 3 Amendments to FY 2013 Table of Organization FY 2009 Actuals FY 2010 Actuals FY 2011 Actuals FY 2012 Adopted Budget FY 2013 Adopted Budget FY 2013 Midyear Changes FY 2013 Adjusted Administrative Associate I 0.00 0.00 0.00 0.00 Administrative Associate II 3.00 3.20 3.20 3.20 2.15 2.15 Administrative Associate III 0.00 0.00 0.00 0.00 Administrator, Refuse 1.00 1.00 1.00 1.00 1.00 1.00 Airport Manager 0.00 0.00 0.00 0.00 1.00 1.00 Assistant Director, Environmental Services 0.00 0.00 0.00 1.00 1.00 1.00 Assoc Engineer 3.30 3.30 3.30 3.30 3.00 3.00 Assoc Planner 1.00 1.00 1.00 1.00 1.00 1.00 Asst Dir Public Wrks 0.75 0.75 0.75 0.75 0.30 0.30 Asst Mgr WQCP 1.00 1.00 1.00 2.00 2.00 2.00 Asst To City Mgr 0.00 0.00 0.10 0.10 0.10 0.10 Business Analyst 1.13 1.13 1.13 0.13 0.00 0.00 Buyer 1.00 1.00 1.00 1.00 1.00 1.00 Chemist 3.00 3.00 3.00 3.00 3.00 3.00 Chief Sustainability Officer 0.00 0.00 0.00 0.00 Coord Pub Wks Proj 0.00 0.00 0.00 1.00 1.00 1.00 Coord Zero Waste 2.00 2.00 2.00 2.00 2.00 2.00 Deputy Chief/Fire Marshall 0.08 0.08 0.08 0.08 0.08 0.08 Electrician 3.00 3.00 3.00 3.00 3.00 3.00 Electrician‐Lead 2.00 2.00 2.00 2.00 2.00 2.00 Eng Tech I 1.00 0.00 0.00 0.00 0.00 0.00 Engineer 1.10 1.00 1.00 1.00 1.00 1.00 Engr Tech III 1.50 1.40 1.40 1.40 1.30 1.30 Environmental Spec 2.00 2.00 2.00 2.00 2.00 2.00 Equip Operator 0.54 0.54 0.54 0.54 0.54 0.54 Executive Assistant 2.00 2.00 2.00 0.00 0.00 0.00 Haz Mat Inspector 0.04 0.04 0.04 0.04 0.04 0.04 Haz Mat Spec 0.02 0.02 0.00 0.00 0.00 0.00 Heavy Equip Oper 5.90 5.90 5.90 5.90 1.90 1.90 Heavy Equip Oper‐L 3.15 3.15 3.15 3.15 2.15 2.15 Ind Waste Inspec 1.00 2.00 2.00 2.00 2.00 2.00 Ind Waste Invtgtr 2.00 2.00 2.00 2.00 2.00 2.00 Laboratory Tech WQC 2.50 2.50 2.50 2.50 2.50 2.50 Landfill Technician 1.00 1.00 1.00 0.00 1.00 1.00 Maint Mech 7.00 7.00 7.00 7.00 7.00 7.00 Management Analyst 0.00 0.00 0.00 1.20 1.20 1.20 Mgr Env Control Prog 3.00 3.00 3.00 3.00 3.00 3.00 Mgr Envrn Compliance 1.00 1.00 1.00 0.00 0.00 0.00 Mgr Lab Services 1.00 1.00 1.00 1.00 1.00 1.00 Mgr Maint Oper 1.38 1.38 1.38 1.38 1.00 1.00 Mgr Solid Waste 1.00 1.00 1.00 1.00 1.00 1.00 Mgr WQC Plant 1.00 1.00 1.00 1.00 1.00 1.00 Program Assistant I 2.00 2.00 2.00 2.00 2.00 (1.00) 1.00 Program Assistant II 1.00 1.00 1.00 1.00 1.00 1.00 2.00 Project Engineer 2.00 2.00 2.00 2.00 2.00 2.00 Project Manager 0.00 0.00 0.00 0.00 Refuse Disp Atten 4.00 4.00 4.00 4.00 0.00 0.00 Senior Management Analyst 0.10 0.10 0.10 0.10 0.05 0.05 Sr Chemist 1.00 1.00 1.00 1.00 1.00 1.00 Sr Mech 1.00 1.00 1.00 1.00 1.00 1.00 Sr Operator WQC 6.00 6.00 6.00 6.00 6.00 6.00 Sr. Accountant 0.00 0.23 0.23 0.23 0.30 0.30 Page 5 of 9 ATTACHMENT A, EXHIBIT 3 Amendments to FY 2013 Table of Organization FY 2009 Actuals FY 2010 Actuals FY 2011 Actuals FY 2012 Adopted Budget FY 2013 Adopted Budget FY 2013 Midyear Changes FY 2013 Adjusted Sr. Business Analyst 0.00 0.00 0.00 0.00 0.13 0.13 Sr. Engineer 2.45 2.45 2.75 2.25 1.90 1.90 Sr. Financial Analyst 0.00 0.16 0.16 0.16 0.16 0.16 Sr. Industrial Waste Investigator 0.00 0.00 0.00 0.00 Sr. Technologist 0.13 0.13 0.13 1.13 1.13 1.13 St Maint Asst 2.00 2.00 2.00 2.00 2.00 2.00 St Sweeper Op 7.00 7.00 7.00 7.00 7.00 7.00 Storekeeper 1.00 1.00 1.00 1.00 1.00 1.00 Supt PW Opns 0.20 0.20 0.20 0.00 0.00 0.00 Supv Public Works 1.00 1.00 1.00 1.00 0.00 0.00 Supv WQC Oper 5.00 5.00 5.00 3.00 3.00 3.00 Surveying Asst 0.11 0.11 0.11 0.11 0.11 0.11 Surveyor, Public Wks 0.11 0.11 0.11 0.11 0.11 0.11 Sustainability Manager 0.00 0.00 0.00 0.00 0.00 0.00 Technologist 0.00 0.00 0.00 0.00 Traf Cont Maint I 0.06 0.06 0.06 0.06 0.06 0.06 Watershed Protection Manager 0.00 0.00 0.00 1.00 1.00 1.00 WQC Plt Oper II 16.00 16.00 16.00 17.00 17.00 17.00 Total Public Works ‐ Enterprise Funds 113.55 114.63 115.01 114.51 104.06 0.00 104.06 Utilities Accountant 0.00 0.75 0.75 0.75 0.60 0.60 Acct Spec 1.00 2.50 2.50 2.50 2.55 2.55 Admin Assistant 1.00 1.00 1.00 1.00 1.00 1.00 Administrative Associate I 2.00 2.00 2.00 2.00 2.00 2.00 Administrative Associate II 7.00 7.00 7.00 7.00 7.00 7.00 Assistant Director Utilities Engineering 1.00 1.00 1.00 1.00 1.00 1.00 Assistant Director Utilities Operations 1.00 1.00 1.00 1.00 1.00 1.00 Assistant Director Utl Cust Support Svs 1.00 1.00 1.00 1.00 1.00 1.00 Assoc Res Planner 1.00 2.00 0.00 0.00 0.00 0.00 Asst Dir Ut/Res Mgmt 1.00 1.00 1.00 1.00 1.00 1.00 Asst Director Adm Svcs 0.00 0.00 0.00 0.10 0.00 0.00 Asst To City Mgr 0.00 0.00 0.35 0.35 0.35 0.35 Business Analyst 2.87 2.87 2.87 4.87 5.87 5.87 Cathodic Protection Technician Assistant 0.00 1.00 1.00 1.00 1.00 1.00 Cathodic Tech 1.00 1.00 1.00 1.00 1.00 1.00 Cement Finisher 1.00 1.00 1.00 1.00 1.00 1.00 Communications Mgr 0.00 0.00 1.00 1.00 1.00 1.00 Contracts Administrator 1.00 1.00 1.00 1.00 1.00 1.00 Coord Util Saf & Sec 1.00 1.00 1.00 1.00 1.00 1.00 Coord Utility Proj 4.00 4.00 5.00 4.00 4.00 4.00 Cust Srv Specialist‐L 1.00 2.00 2.00 2.00 2.00 2.00 Cust Svc Represent 5.00 5.00 5.00 5.00 5.00 5.00 Cust Svc Spec 2.00 2.00 2.00 2.00 2.00 2.00 Deputy Chief/Fire Marshall 0.08 0.08 0.08 0.08 0.08 0.08 Deputy Dir Adm Svcs 0.20 0.20 0.20 0.00 0.00 0.00 Dir Adm Svcs/Chief Financial Officer 0.15 0.15 0.15 0.15 0.25 0.25 Dir Utilities 1.00 1.00 1.00 1.00 1.00 1.00 Elec Asst I 5.00 5.00 5.00 5.00 4.00 4.00 Elec Undgd Inspec 2.00 2.00 2.00 2.00 2.00 2.00 Electric Project Engineer 1.00 1.00 2.00 2.00 2.00 2.00 Electric Underground Inspector ‐ Lead 1.00 1.00 1.00 1.00 1.00 1.00 Page 6 of 9 ATTACHMENT A, EXHIBIT 3 Amendments to FY 2013 Table of Organization FY 2009 Actuals FY 2010 Actuals FY 2011 Actuals FY 2012 Adopted Budget FY 2013 Adopted Budget FY 2013 Midyear Changes FY 2013 Adjusted Electrician 14.00 14.00 14.00 14.00 14.00 14.00 Electrician‐Lead 6.00 6.00 6.00 6.00 6.00 6.00 Engineer 4.00 4.00 4.00 4.00 4.00 4.00 Engr Mgr ‐ Electric 1.00 1.00 1.00 1.00 1.00 1.00 Engr Mgr ‐ WGW 1.00 1.00 1.00 1.00 1.00 1.00 Engr Tech III 3.00 3.00 3.00 3.00 3.00 3.00 Equip Operator 2.00 1.00 1.00 1.00 1.00 1.00 Gas System Tech 2.00 1.00 2.00 2.00 2.00 2.00 Gas System Technician II 0.00 1.00 1.00 1.00 1.00 1.00 Haz Mat Inspector 0.06 0.06 0.06 0.06 0.06 0.06 Haz Mat Spec 0.03 0.03 0.00 0.00 0.00 0.00 Heavy Equip Oper 10.00 10.00 9.00 9.00 8.00 8.00 Inspector, Field Svc 4.00 4.00 4.00 4.00 5.00 5.00 Lineper/Cable Spl 11.00 11.00 11.00 11.00 11.00 11.00 Lineper/Cable Spl‐L 4.00 4.00 4.00 4.00 4.00 4.00 Maint Mech 1.00 1.00 1.00 0.00 0.00 0.00 Maintenance Mechanic‐Welding 1.00 1.00 1.00 2.00 2.00 2.00 Manager Energy Risk 1.00 1.00 1.00 0.00 0.00 0.00 Marketing Eng 1.00 1.00 1.00 1.00 1.00 1.00 Meter Reader 6.00 6.00 6.00 6.00 6.00 6.00 Meter Reader‐Lead 1.00 1.00 1.00 1.00 1.00 1.00 Mgr Cust Svc & Meter Reading 1.00 1.00 1.00 1.00 1.00 1.00 Mgr Electric Oprns 1.00 1.00 1.00 1.00 1.00 1.00 Mgr Util Mkt Svcs 1.00 1.00 1.00 1.00 1.00 1.00 Mgr Util Oprns WGW 1.00 1.00 1.00 1.00 1.00 1.00 Mgr Util Telecomm 1.00 1.00 1.00 1.00 1.00 1.00 Offset Equip Op 0.00 0.00 0.48 0.48 0.48 0.48 OH UG Troubleman 0.00 0.00 0.00 0.00 2.00 2.00 Planner 0.00 0.00 0.30 0.30 0.30 0.30 Power Engr 2.00 2.00 3.00 3.00 3.00 3.00 Program Assistant I 3.00 3.00 3.00 3.00 3.00 3.00 Project Engineer 6.00 6.00 5.00 5.00 5.00 5.00 Project Mgr 0.75 0.75 0.75 0.75 0.75 0.75 Resource Planner 4.00 4.00 5.00 5.00 5.00 5.00 Restoration Lead 0.00 1.00 1.00 1.00 1.00 1.00 Senior Management Analyst 1.00 1.00 1.00 1.00 1.00 1.00 Sr Mech 1.00 1.00 1.00 1.00 1.00 1.00 Sr Mkt Analyst 1.00 1.00 1.00 1.00 1.00 1.00 Sr Util Field Svc Rep 1.00 1.00 1.00 1.00 1.00 1.00 Sr Water Sys Oper 2.00 2.00 2.00 2.00 2.00 2.00 Sr. Accountant 0.00 0.75 0.75 0.75 0.70 0.70 Sr. Business Analyst 1.00 1.00 2.00 2.00 2.00 2.00 Sr. Deputy City Attorney 0.00 0.00 1.00 1.00 1.00 1.00 Sr. Electric Project Engineer 4.00 4.00 4.00 4.00 4.00 4.00 Sr. Financial Analyst 0.00 0.60 1.10 1.60 1.40 1.40 Sr. Performance Auditor 0.00 0.00 1.00 1.00 1.00 1.00 Sr. Project Engineer 4.00 4.00 4.00 4.00 4.00 4.00 Sr. Resource Originator 1.00 1.00 0.00 0.00 0.00 0.00 Sr. Resource Planner 6.00 6.00 7.00 7.00 7.00 7.00 Sr. Technologist 0.87 0.87 0.87 0.87 0.87 0.87 Storekeeper 2.00 2.00 2.00 2.00 2.00 2.00 Page 7 of 9 ATTACHMENT A, EXHIBIT 3 Amendments to FY 2013 Table of Organization FY 2009 Actuals FY 2010 Actuals FY 2011 Actuals FY 2012 Adopted Budget FY 2013 Adopted Budget FY 2013 Midyear Changes FY 2013 Adjusted Supervising Electric Project Engineer 2.00 2.00 1.00 1.00 1.00 1.00 Supervising Project Engineer 0.00 0.00 1.00 1.00 1.00 1.00 Supv Water Trans 1.00 1.00 1.00 1.00 1.00 (1.00) 0.00 Supv WGW 5.00 5.00 5.00 5.00 5.00 (5.00) 0.00 Sustainability Manager 0.00 0.00 0.00 0.00 0.00 0.00 Tree Maint Person 1.00 1.00 1.00 1.00 1.00 1.00 Util Acct Rep 3.00 3.00 3.00 4.00 4.00 4.00 Util Comp Tech 2.00 2.00 2.00 2.00 2.00 2.00 Util Comp Tech‐L 1.00 1.00 1.00 1.00 1.00 1.00 Util Credit/Col Spec 1.00 1.00 1.00 1.00 1.00 1.00 Util Engr Estimator 6.00 6.00 5.00 4.00 5.00 5.00 Util Fld Svcs Rep 7.00 5.00 5.00 5.00 5.00 5.00 Util Install/Rep 11.00 11.00 12.00 12.00 12.00 12.00 Util Install/Rep Ast 1.00 1.00 1.00 1.00 1.00 1.00 Util Install/Rep‐L 5.00 5.00 5.00 5.00 5.00 5.00 Util Locator 3.00 3.00 3.00 3.00 3.00 3.00 Utilities Supervisor 0.00 0.00 0.00 0.00 0.00 6.00 6.00 Util Syst Oper 5.00 5.00 5.00 5.00 5.00 5.00 Utilities Compliance Manager 0.00 0.00 1.00 1.00 1.00 1.00 Utilities Supervisor 5.00 5.00 5.00 5.00 5.00 5.00 Utility Key Account Rep ‐ S 3.00 3.00 3.00 3.00 3.00 3.00 Utl Install Repair Lead‐Welding Cert 2.00 2.00 2.00 2.00 2.00 2.00 Utl Install Repair‐Welding Cert 3.00 3.00 3.00 3.00 3.00 3.00 Warehouse Supv 0.00 0.00 0.50 0.50 0.50 0.50 Water Sys Oper II 5.00 4.00 4.00 4.00 4.00 4.00 Wtr Mtr Crs Cn Tec 2.00 2.00 3.00 3.00 3.00 3.00 Total Utilities 238.01 241.61 250.71 251.11 253.76 0.00 253.76 Information Technology Admin Assistant 0.07 0.07 0.07 1.07 1.00 1.00 Administrative Associate II 1.00 1.00 1.00 0.00 0.00 0.00 Administrative Associate III 0.04 0.04 0.00 0.00 0.00 0.00 Asst Director Adm Svcs* 0.40 0.40 0.40 0.40 0.30 (0.10) 0.20 Business Analyst 0.90 0.90 1.00 1.00 1.00 1.00 Chief Information Officer 1.00 1.00 1.00 1.00 1.00 1.00 Desktop Technician 5.00 5.00 5.00 5.00 5.00 5.00 Dir Adm Svcs/Chief Financial Officer* 0.35 0.35 0.35 0.35 0.25 (0.05) 0.20 Information Technology Security Manager 0.00 0.00 0.00 0.00 1.00 1.00 Management Analyst 0.00 0.00 0.50 0.50 1.00 1.00 Mgr IT 3.00 3.00 3.00 3.00 4.00 4.00 Sr. Business Analyst 1.80 1.80 2.00 2.00 2.00 2.00 Sr. Financial Analyst 0.09 0.09 0.09 0.09 0.00 0.00 Sr. Technologist 13.00 13.00 13.00 13.00 12.00 12.00 Technologist 4.00 4.00 3.00 3.00 3.00 3.00 Total Information Technology 30.65 30.65 30.41 30.41 31.55 (0.15) 31.40 Page 8 of 9 ATTACHMENT A, EXHIBIT 3 Amendments to FY 2013 Table of Organization FY 2009 Actuals FY 2010 Actuals FY 2011 Actuals FY 2012 Adopted Budget FY 2013 Adopted Budget FY 2013 Midyear Changes FY 2013 Adjusted Special Revenue Acct Spec 0.00 0.00 0.50 0.50 0.50 0.50 Administrative Associate II 0.20 0.20 0.20 0.20 0.20 0.20 Community Serv Offcr 0.00 0.00 0.50 0.50 0.50 0.50 Management Analyst* 0.00 0.00 0.00 0.00 0.50 (0.50) 0.00 Planner 1.00 0.95 0.95 0.95 0.95 0.95 Total Special Revenue 1.20 1.15 2.15 2.15 2.65 (0.50) 2.15 * Change is to correct the Table of Organization only. Funding was transferred in the Fiscal Year 2013 adopted budget. Page 9 of 9 *NOT YET APPROVED* 130221 sh 0140085 1 Resolution No. ____ Resolution of the Council of the City of Palo Alto Amending the 2011- 2013 Compensation Plan for Management and Professional Personnel Adopted by Resolution No. 9282 to Change the Title of Two Positions, Change the Salary for Two Positions, Correct the Salary Sheet for Three Positions, Correct the Grade Code for One Position and Eliminate One Position The Council of the City of Palo Alto RESOLVES as follows: SECTION 1. Pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto, the 2011-2013 Compensation Plan for Management and Professional Personnel, adopted by Resolution No. 9282 is hereby amended to change the title of two positions, change the salary for two positions, correct the salary sheet for three positions, correct the grade code for one position and eliminate one position, as set forth in Exhibit “A”, attached hereto and incorporated herein by reference, effective with the pay period including April 8, 2013. SECTION 2. The Director of Administrative Services is authorized to implement the amended Compensation Plan as set forth in Section 1. SECTION 3. The Council finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ___________________________ ______________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ___________________________ ______________________________ City Attorney City Manager _____________________________ Director of Administrative Services ____________________________ Chief People Officer *NOT YET APPROVED* 130221 sh 0140085 2 EXHIBIT A Management/Professional Compensation Plan Changes – Effective April 8, 2013 Job Code Classification Title Grade Code Control Point Approx. Annual Hourly 43 Supervisor, Animal Services (elimination) 47 6,836.04 82,032.45 39.44 101 Human Resources Representative (title and salary change reclass for HR Assistant) 49 6,495.05 77,940.55 37.47 45 Mgr, Employee Relations and Training (title and salary change for one Sr. HR Administrator) 31 10,249.60 122,995.23 59.13 154 Community Services Manager (salary sheet correction) 42 7,767.98 93,215.78 44.82 169 Community Services Senior Program Manager (salary sheet correction) 41 7,955.44 95,465.30 45.90 83 Community Services Superintendent (salary sheet correction) 34 9,501.54 114,018.53 54.82 146 Warehouse Supervisor (grade code correction) 47 6,836.04 82,032.45 39.44 City of Palo Alto (ID # 3442) Finance Committee Staff Report Report Type: Meeting Date: 3/5/2013 City of Palo Alto Page 1 Summary Title: FY 2013 Midyear BAO Title: Finance Committee Recommendation Regarding Adoption of Budget Amendment Ordinance Amending the Budget for Fiscal Year 2013 to Adjust Budgeted Revenues and Expenditures in Accordance with the Recommendations in the Midyear Report From: City Manager Lead Department: Administrative Services Recommendation Staff recommends the Finance Committee recommend to the City Council adoption of: 1) Budget Amendment Ordinance (BAO) (Attachment A) which includes: a) Proposed midyear adjustments to the Fiscal Year 2013 Budget for the General Fund, Enterprise Funds, Special Revenue Funds, Internal Service Funds, and Capital Improvement Projects Fund (Exhibit 1) b) Fiscal Year 2013 Midyear CIP Adjustments (Exhibit 2) c) Amendments to the Fiscal Year 2013 Table of Organization (Exhibit 3) 2) Resolution of the Council of the City of Palo Alto Amending the 2011-2013 Compensation Plan for Management and Professional Adopted by Resolution No. 9282 to Change the Title of Two Positions, Change the Salary for Two Positions, Salary Sheet Corrections for Three Positions, Grade Code Correction for One Position and Eliminate one Position (Attachment B), which includes: a) Management/Professional Compensation Plan Changes (Exhibit 1) The following are attached as informational items; no action is required on these items: 1) General Fund Capital Improvement Program Project Expenditures for Fiscal Years 2009- City of Palo Alto Page 2 2013 (Attachment C) 2) Fiscal Year 2013 Midyear Capital Improvement Program Projects Status Report (Attachment D) 3) Continuous Capital Projects Expenditures for Fiscal Years 2009-2013 (Attachment E) Motions Motion to recommend to the City Council to adopt the Budget Amendment Ordinance (BAO) for the proposed midyear adjustments to the Fiscal Year 2013 budget for the General Fund, Capital Improvement Projects Fund, Enterprise Funds, Special Revenue Funds, Internal Service Funds as listed in Attachment A. Motion to recommend to the City Council to adopt the resolution amending the 2012-2013 Compensation Plan for Management and Professional employees. Executive Summary The documents attached summarize and outline changes to the City’s Fiscal Year 2013 budget. As revenues and expenditures may vary from the original budget plan, changes become necessary. These require amendments to department budgets which the Finance Committee reviews and responds to staff’s recommendation for approval. Due to differences in preparation timelines, some minor adjustments proposed in this report are not reflected in the Long Range Financial Forecast (LRFF). The General Fund began Fiscal Year 2013 began with a $27.7 million Budget Stabilization Reserve balance which was 18.15 percent of the operating budget expenditures. Subsequent to the Fiscal Year 2013 budget adoption, Council has approved BAOs totaling $0.56 million which reduced the BSR to $27.2 million. As a result of better than expected revenue income, midyear adjustments result in a $3.2 million supplement to the General Fund BSR. The midyear budget adjustments reflect a projected $4.2 million revenue increase and a $1 million increase in expense. These changes will result in a projected $30.4 million BSR balance, or 19.88 percent of adopted expenditures. This level is above the target level of 18.5 percent of total operating expenditures. Background This report summarizes proposed changes to the Fiscal Year 2013 Adopted Budget and reports financial activity through December 31, 2012. Where possible, budget changes are held until the midyear report is presented to Council in an effort to consolidate information and City of Palo Alto Page 3 streamline the BAO process. This report is organized by fund with a primary focus on major changes in the General Fund. Financial results and midyear changes for the Enterprise, Internal Service, and Special Revenue Funds are also included in this report. Adjustments, as well as all fund summaries, are included in Attachment A, Exhibit 1. The Midyear CIP Program Project Status report (Attachment C) provides the Finance Committee with information on the status of the City’s CIP projects as of December 31, 2012. Discussion Citywide Changes Management & Professional Training Funds On September 4, 2012, Council adopted the updated Management/Professional compensation plan which reduced development funds from $1,500 to $500 for each employee. To continue addressing management development needs the reduction, $1,000/employee, was transferred to the non-salary category and will be used at the Department Head discretion. In some instances, Management/Professional staff full-time equivalents (FTEs) are split between various funds and/or departments to where the employee provides support. To allow the Department Head a more development discretion over reports in their department, the funds were reallocated to the employees “home” fund/department. Retiree Medical Fund The final actuarial study by Bartel & Associates was completed subsequent to budget adoption. The final report includes Council’s recommended changes for the study’s actuarial assumptions – specifically the amortization method, asset smoothing, and the actuarial load (see Staff Report ID#2655 and the final report under ID#3010). In total, the midyear budget reflects a $114 thousand decrease in the Citywide actuarial required contribution (ARC) towards retiree medical health benefit. Of this decrease, there is a $40 thousand decrease in the General Fund, a $67 thousand decrease in Enterprise Funds, and a $7 thousand decrease in the Internal Service Funds. For the detail of these changes, please refer to Attachment A, Exhibit 1. General Fund Midyear Financial Report In Fiscal Years 2011 and 2012, revenues have exceeded projections by 5.1 percent and 9.2 percent, respectively. The second quarter continues to show positive revenue results for the General Fund. The discussion under General Fund Revenue provides detail of the changes in revenue which net to $4.2 million of revenue improvements; a 2.9 percent combined increase in Sales, Property, Transient Occupancy, and Documentary Transfer Taxes. Detail for revenue and expense changes can be found in Attachment A, Exhibit 1. City of Palo Alto Page 4 General Fund Revenue Sales Tax Fiscal Year 2013 sales tax revenue is estimated at $23.4 million, an increase of $0.8 million above the Adopted Fiscal Year 2013 budget and the highest since Fiscal Year 2001 when actual revenue was $25.8 million. The increase is due to robust performance in the electronic equipment, apparel stores, restaurants, and service station sectors. Receipts in the first quarter of Fiscal Year 2013 are 6.7 percent above the prior year’s first quarter, supporting this forecast. Property Tax Fiscal Year 2013 property tax revenue is projected at $27.9 million, an increase of $0.6 million above the Adopted Fiscal Year 2013 budget. This represents a new high for this category, up from the previous high of $26.5 million realized in Fiscal Year 2012. The increase is attributable to better than expected receipts from unsecured property taxes and motor vehicle in-lieu fee and reduction in county administrative fee due to the California Supreme Court’s decision that Triple Flip and motor vehicle in-lieu amounts cannot be used in determining the county administrative fee in administrating the property tax collection. Transient Occupancy Tax (TOT) The Fiscal Year 2013 TOT revenues are projected to reach $10.4 million, an increase of $0.8 million or 8.8 percent above the Adopted Fiscal Year 2013 budget and $0.8 million or 8.0 percent over the prior year’s actual receipts. This represents a new high for this category; the previous highest amount was $9.4 million realized in Fiscal Year 2001, prior to a 2 percent increase in the tax. With increased business activity and visitors to Palo Alto, staff is adjusting the budget forecast upward. Average occupancy and daily rates, respectively, have surged from City of Palo Alto Page 5 79.1 percent and $165.72 per day in Fiscal Year 2012 to an average of 83.4 percent and $176.77 per day for the first five months of Fiscal Year 2013. Utility Users’ Tax (UUT) UUT revenues are expected to be $10.8 million, an increase of $0.1 million above the Fiscal Year 2013 adopted budget, just $9 thousand below the amount received in Fiscal Year 2012 and below the $11.3 million high received in Fiscal Year 2010. The forecast increase is attributable to an unexpectedly large payment from a major phone carrier and is expected to be a one-time increase. Documentary Transfer Tax Fiscal Year 2013 revenues are projected to be $6.8 million, an increase of $1.7 million over the Adopted Fiscal Year 2013 budget, of which $1.6 million is one-time. This is a record setting forecast attributable to a small number of high value commercial property sales. The previous highest receipt was $5.8 million in Fiscal Year 2007 and average receipt over the last decade was $4.8 million. Charges for Services Proposed midyear changes in this category net to a revenue decrease of $66 thousand. The main drivers of this change are $0.1 million is attributed to revenue adjustments from Animal Services (per Staff Report #3001), $8 thousand from a small increase for property easement revenue received but not budgeted, and a $0.2 million increase for Fire Department Plan Check Services. Actual revenues received for Fire Department Plan Check services in the first quarter alone account for 64 percent of the entire fiscal year’s budgeted revenue. Staff anticipates continued positive revenue trends as development activity remains strong. Permits and Licenses Proposed midyear changes in this category total a revenue increase of $79 thousand. This is due to a $53 thousand increase in Public Works’ Street Open Permits based on the current revenue trend and an increase of $26 thousand in Police Animal Services due to Council action (Staff Report #3001) authorizing a fee increase for dog licenses. Return on Investment Interest earnings for Fiscal Year 2013 is forecasted to be $0.8 million, a decrease of $0.2 million or 19.3 percent. The Federal Open Market Committee remains committed to keeping interest rates at exceptionally low levels. As higher-yielding maturing investments are re-invested in a historically low interest rate environment, General Fund interest earnings continue to steadily decline. From Other Agencies A $13 thousand revenue increase is proposed in this category. The Fire Department has received a $5 thousand grant from the State of California Environmental Protection Agency to City of Palo Alto Page 6 implement an electronic reporting system and the Community Services Department received an $8 thousand grant from the Arts Council of Silicon Valley for course instruction for studio art programs and artistic services for art exhibitions. Artistic services will include honorariums for art lectures, workshops, and contribution of art. Both of these department increases are correspondingly offset by expense augmentations as listed in this report. Charges to Other Funds A $40 thousand revenue reduction is proposed in this category to reflect the reduced revenue from Utilities for surveying and inspection services. Utilities staff now provides these services, which had been provided by Public Works staff in the past. This change reduces the reimbursement to the General Fund. Other Revenue Proposed midyear changes in this category total $56 thousand. The Community Services Department received a donation of $40 thousand from the Friends of the Children’s Theater, which will be used for contract services to include show directors, choreographers, lighting designers, set designers, and musicians. Another $2 thousand is from donations to the Library from California Pizza Kitchen, Gordon Biersch, and the Parents’ Club of Palo Alto and Menlo Park. An increase of $7 thousand is due to the sale of salvage, $7 thousand is due to increased revenue from Treasury administration. Operating Transfers In The General Fund will receive reimbursements from the following funds for providing certain services: A $0.2 million transfer from the public donations fund to support of Animal Services. This was included as part of the Animal Services Placeholder plan that was approved by Council in August 2012 (Staff Report #3001). Transfers of $15 thousand from the Capital Projects Fund (CIP project PL-12000 Transportation and Parking Improvements) and $30 thousand from the College Terrace Parking Permit Fund will be made for temporary salaries to administer the parking permit programs. City of Palo Alto Page 7 General Fund Expense Overtime Analysis The Community Services Department has expended $58 thousand, or 63 percent of the department’s overtime by the end of the second quarter, compared to 44 percent for the same period last fiscal year. The main driver of this year’s expense is department backfill for extended staff absences due to workplace injury (approximately four months). The Fire Department has expended $0.983 million in overtime as of the end of the second quarter, which accounts for 61 percent of the department’s overtime budget. This is $1.1 million less than the same period during Fiscal Year 2012. This significant reduction in overtime is a direct result of the elimination of minimum staffing requirements and the closure of Station 7. The Department implemented several operational changes in the first two quarters that have contributed to decreased overtime usage, including regular staffing of Medic 2 rather than covering with overtime. The main factors contributing to Fiscal Year 2013 overtime expenses were minimum apparatus staffing for Engine 2 while the Department evaluates the effects of flexible staffing models and staffing shortages due to vacation and sick leave. Additional overtime factors include Station 8 staffing ($0.27 million) and Stanford football and soccer games. Overtime expense exceeding budget is reimbursed through the Stanford Fire agreement at a rate of 30.3 percent and reported as department revenue. City of Palo Alto Page 8 The Planning and Community Environment Department has expended $37 thousand, or 56 percent of its annual overtime budget, compared to 42 percent the same time the prior year. Overtime usage increased from last year primarily due a higher level of participation at after- hours public meetings, particularly related to the Rail Corridor and Buena Vista Mobile Park projects. Other projects requiring additional overtime include 395 Page Mill, 101 Lytton Gateway, Edgewood, Comprehensive Plan Amendments, California Avenue Streetscape, support of the Below Market Rate and other housing programs, and attendance at Bicycle Advisory Commission meetings. The Police Department has expended $765 thousand in overtime as of the end of the second quarter, which accounts for 79 percent of the department’s overtime budget. This is $81 thousand less than the same period of Fiscal Year 2012. The main factors contributing to overtime were staffing shortages due to vacancies in patrol and the 9-1-1 dispatch center, and providing traffic control at numerous special events including Stanford football and soccer games, and increased burglary suppression efforts during the first two quarters. The Department filled the vacancies in the dispatch center in mid-December. The Department receives partial reimbursement from Stanford (16 percent) and the Utilities Department (approximately 8.2 percent) for dispatch services, and from neighboring cities for animal control and care services. Traffic control services at Stanford football games and other events are partially offset by reimbursements from the University and other organizations. The Public Works Department has spent $84 thousand of its $113 thousand Fiscal Year 2013 overtime budget, or 75 percent, as of the end of the second quarter. Overtime primarily resulted from standby and call-out hours in Trees, Facilities, and Operations due to facilities installations, repairs, and maintenance that cannot be done during normal business hours; custodial evening training oversight; street work on California Avenue; oversight of construction projects activities at Civic Center and MSC- Building C; and response to flooding late in December. Contingency Accounts The City Council, City Manager, City Attorney, and Human Resources Offices have contingency accounts. There are also contingency accounts for Innovation and Special Events which are used at the discretion of the City Manager. The changes and balances in those accounts are discussed below. City Council Contingency The account had a beginning balance of $0.25 million in Fiscal Year 2013, and retains the same balance as of this report. City of Palo Alto Page 9 City Manager Contingency The account had a beginning balance of $0.25 million in Fiscal Year 2013, and has a balance of $0.18 million as of this report. A total of $73 thousand has been used for the following: $25 thousand to Sponsor the Palo Alto Chamber of Commerce Leadership Program $25 thousand for a Study on Fire Services for Stanford $10 thousand for City Staff Appreciation Event $8 thousand for Executive delegation to China, Shanghai & Hangzhou $5 thousand for Employee Service awards City Attorney Contingency The account had a beginning balance of $0.25 million in Fiscal Year 2013, and retains the same balance as of this report. Human Resources Contingency The account had a beginning balance of $50 thousand in Fiscal Year 2013, and retains the same balance as of this report. Innovation Contingency The account had a beginning balance of $0.1 million in Fiscal Year 2013, and has a balance of $0.1 million as of this report. Special Events Contingency This is a new contingency in Fiscal Year 2013. The beginning balance was $50 thousand and as of midyear, $9 thousand remains in this account. A total of $41 thousand has been used for the following: $17 thousand for the International Film Festival $8 thousand for Bike Palo Alto $16 thousand for the Holiday Tree and Decorations Department Budget Adjustments Staff proposes the following department budget adjustments. Salary and benefits for all position changes are prorated effective March 19, 2013. City Attorney’s Office City of Palo Alto Page 10 Staff proposes an adjustment for the retiree medical ARC and for management development funds, totaling $2 thousand. City Auditor’s Office A proposed $11 thousand augmentation is proposed for this department. This consists of $18 thousand for the addition of a 0.5 FTE Performance Auditor and $1 thousand from the transfer of management training budgets to departments. These increases are partially offset by a reduction of $8 thousand for temporary salaries. City Clerk’s Office Staff proposes a $46 thousand augmentation, which includes $26 thousand for contracted minute transcription and $20 thousand for an automated system to track Form 700 and campaign disclosure requirements. Administrative Services The Department anticipates an increase in revenue of $66 thousand due to transfers in from the parking district and CIP and the increase of revenue budgets to reflect actuals. Budget augmentations of $0.2 million are proposed, resulting in a net $0.1 million budget impact to include the following: $1 thousand reduction of expense due to an adjustment to Medical Retiree ARC. $45 thousand for temporary salaries to administer parking permit programs. $10 thousand due to the transfer of management training budgets to departments. $64 thousand for bankcard service charges for investments and banking. The final accrual payment was not processed for Fiscal Year 2012; therefore the budget is short one payment in Fiscal Year 2013. $46 thousand for contract services in the Purchasing division for a contract worker to assist with the library project. $50 thousand for contract services in the Purchasing division for a quantitative data analysis. Community Services Department (CSD) Staff proposes a $116 thousand augmentation, which is offset by a $48 thousand revenue increase. The net budget impact is $68 thousand, which includes: $8 thousand grant from Santa Clara County Arts and corresponding expense for art course instruction. $40 thousand donation from Friends of the Palo Alto Theater and corresponding expense for contract personnel for Children’s Theater. $2 thousand reduction of expense due to an adjustment of Medical Retiree ARC. $38 thousand to cover increasing Enjoy! Catalog production costs, as well as a Summer Camp supplement. $2 thousand for the uncollected portion of funds for the replacement of two turf mowers. City of Palo Alto Page 11 $30 thousand for an online ticketing system for Children’s Theater which is transferred to the Tech Fund to be implemented by the Information Technology Department. Fire Proposed department changes result in a net General Fund contribution of $0.2 million, which includes: $5 thousand increase in revenue and corresponding expense for a grant from the Environmental Protection Agency. $231 thousand in additional revenue from Plan Check Fees due to robust activity in development services. $15 thousand for Fire Chief relocation expenses. $2 thousand reduction of expense due to the transfer of management training budgets to departments. $26 thousand reduction of expense from an adjustment to Medical Retiree ARC. Human Resources The Human Resources Department proposed changes result in a $11 budget augmentation due to: $3 thousand increase for the reclassification of 1.00 FTE Human Resource Assistant Confidential to Human Resource Representative. $9 thousand increase for the reclassification of 1.00 FTE Sr. Human Resources Administrator to Manager, Employee Relations. $1 thousand reduction of expense from an adjustment in Medical Retiree ARC. Library Staff proposes a net budget augmentation of $27 thousand, which includes: $2 thousand in one-time revenue and corresponding expense due to donations from Gordon Biersch, California Pizza Kitchen, and the Parents’ Club of Palo Alto & Menlo Park. $27 thousand to increase a Senior Librarian position from 0.5 FTE to 1 FTE. Planning and Community Environment Staff proposes a net $0.1 million augmentation that consists of: $75 thousand to replenish contract services budget used for a wireless study and a hazmat study. Both studies were approved by Council, but budgets were not provided at that time. $49 thousand for the addition of 1.0 FTE Senior Planner. This position was eliminated during the Fiscal Year 2013 budget process. Subsequent experience indicated that this position is necessary for the operations of PCE. City of Palo Alto Page 12 Police Police Department budget adjustments net to a General Fund contribution of $0.4 million, which is offset by the Animal Services Placeholder that was included in the General Fund Non- Departmental budget. These changes related to the placeholder are outlined in staff’s presentation of Proposed Revenue Increases and Expense Reductions for Animal Services, which was approved by Council (Staff Report #3001). The Department’s proposed changes include: $175 thousand revenue increase from Animal Services donations. $170 thousand additional revenue from Animal Services permits and licenses. $105 thousand reduction in salary and benefits for Animal Services. $49 thousand increase of expense for the addition of 1.0 FTE Senior Administrator. $2 thousand increase of expense due to the transfer of management training budgets to departments. $18 thousand reduction of expense due to an adjustment in Medical Retiree ARC. Public Works Staff proposes a $14 thousand revenue increase and a $32 thousand budget augmentation, resulting in an $18 thousand budget impact. Changes include: $40 thousand decreased revenue from surveying and inspection services, which are now provided either by contractors or by Utilities staff. $54 thousand increased revenue to reflect actual increases in revenue this year from street open permits. $61 thousand reduction of expense for supplies, janitorial, and maintenance due to the delayed opening of Mitchell Park facilities. $60 thousand increase for infrastructure cost estimates engineering support for possible ballot measure. $30 thousand increase due to the transfer of management training budget to departments. $2 thousand increase due to an adjustment of Medical Retiree ARC. Operating Transfers Out The following proposed transfers from the General Fund to other funds are as follows: $0.43 million reduction in transfers for Golf Course Improvement refinancing of Certificates of Participation, accompanied by a corresponding increase in General Expense. $62 thousand increase in transfers to the Technology Fund for the General Fund’s portion of SAP license increases, for automation of Form 700 Statement of Economic Interests, required to be completed by the State of California, and for implementation of online ticketing for Children’s Theater. $2 thousand increase in transfers to the Vehicle Replacement Fund for the purchase of turf mowers. The amount of the transfer covers the gap between what has been City of Palo Alto Page 13 collected for replacement to date and the expected purchase price. Enterprise Funds The Fiscal Year 2013 Midyear Budget Summaries (Attachment A, Exhibit 1) provide a financial report of the Enterprise Funds as of midyear. The details of changes related to the Enterprise Fund Capital Improvement Program are discussed later in this report. City’s Enterprise Funds midyear adjustments are discussed below. Budget impacts for Water-Gas-Wastewater Supervisor positions and title change to Utilities Supervisor are included in this report to reflect potential budget changes and amendments to the Table of Organization. These changes will become effective when the Utilities Management and Professional Association of Palo Alto (UMPAPA) Memorandum of Agreement (MOA) is approved by Council. The Human Resources Department anticipates requesting Council approval of the MOA in a separate report once a tentative agreement is signed Electric Fund Net reserve addition: $8.5 million Retiree Medical ARC Impact: -$32 thousand Electric commodity purchases are lowered by $6.9 million to reflect the most current forecasted electric commodity costs. Major contributors to the budget reduction include a delay in the online start date for one renewable energy project and savings in transmission costs over the original budget forecast. A net revenue increase of $36 thousand is the result of 1) revenues from hydro resources in the ancillary services markets have been greater than projected; and 2) reduced carbon allowance revenue is due to lower than anticipated auction prices. A transfer of $0.3 million from the Technology Fund represents a return of funding from CIP projects TE-10001 Utilities Customer Billing System Continuous Improvements, and TE-11003 Recurring Credit Card Payment. The projected costs of TE-10001 were less than anticipated. Project TE-11003 has been postponed indefinitely due to a lack of SAP resources and competing priorities. A transfer of $0.1 million to the Technology Fund represents the Electric Fund’s share of the City’s payment to SAP for licensing charges. City of Palo Alto Page 14 Various capital projects within the Electric Fund are either reduced, or are completed and closed (see Attachment A, Exhibit 1). As a result, $1.4 million is returned to Electric Fund reserves. Fiber Optics Fund Net reserve reduction: $2 thousand A transfer of $1 thousand from the Technology Fund represents a return of funding from CIP projects TE-10001 Utilities Customer Billing System Continuous Improvements, and TE-11003 Recurring Credit Card Payment. The projected costs of TE-10001 were less than anticipated. Project TE-11003 has been postponed indefinitely due to a lack of SAP resources and competing priorities. A transfer of $4 thousand to the Technology Fund represents the Fiber Optics Fund’s share of the City’s payment to SAP for licensing charges. A reduction in salaries and benefits is due to the transfer of management training funds to department budgets. Gas Fund Net reserve addition: $0.7 million Retiree Medical ARC Impact: -$15 thousand Gas commodity purchases are lowered by $0.8 million to reflect the delay of increases in Pacific Gas and Electric’s (PG&E) local gas transmission costs. The increases of these costs are delayed pending a review by the California Public Utilities Commission (CPUC). Revenue is decreased by $461 thousand due to a reduction in gas retail sales stemming from lower gas supply transportation cost, which correspondingly results in a reduced charge to customers. A transfer of $0.1 million from the Technology Fund represents a return of funding from CIP projects TE-10001 Utilities Customer Billing System Continuous Improvements, and TE-11003 Recurring Credit Card Payment. The projected costs of TE-10001 were less than anticipated. Project TE-11003 has been postponed indefinitely due to a lack of SAP resources and competing priorities. City of Palo Alto Page 15 A transfer of $39 thousand to the Technology Fund represents the Gas Fund’s share of the City’s payment to SAP for licensing charges. A transfer of $58 thousand to the Vehicle Replacement Fund represents the funding gap between previously collected replacement costs and the purchase price of an asphalt patch truck. A reduction of $16 thousand is due to an adjustment to Retiree Medical ARC and the transfer of training funds to department budgets. An increase of $17 thousand is due to the change of Water-Gas-Wastewater (WGW) Supervisor to Utilities Supervisor per the Management Compensation Plan. A new project, COBUG upgrade, is proposed at $0.3 million. Various capital projects within the Gas Fund are either reduced, or are completed and closed (see Attachment A, Exhibit 1). As a result, $0.7 million is returned to Gas Fund reserves. Wastewater Collection Fund Net reserve addition: $0.1 million Retiree Medical Impact: -$5 thousand A transfer of $34 thousand from the Technology Fund represents a return of funding from CIP projects TE-10001 Utilities Customer Billing System Continuous Improvements, and TE-11003 Recurring Credit Card Payment. The projected costs of TE-10001 were less than anticipated. Project TE-11003 has been postponed indefinitely due to a lack of SAP resources and competing priorities. A transfer of $16 thousand to the Technology Fund represents the Wastewater Collection Fund’s share of the City’s payment to SAP for licensing charges. A transfer of $0.4 million to the Vehicle Replacement Fund represents the purchase cost of a Hydro Excavator, for which no replacement costs have been collected, and to fund the gap between previously collected replacement costs and the purchase price for two new VacCon trucks. City of Palo Alto Page 16 An increase of $11 thousand is due to the change of Water-Gas-Wastewater (WGW) Supervisor to Utilities Supervisor per the Management Compensation Plan. A reduction of $5 thousand is due to an adjustment to Retiree Medical ARC and the transfer of training funds to department budgets. Various capital projects within the Wastewater Collection Fund are either reduced, or are completed and closed (see Attachment A, Exhibit 2). As a result, $0.5 million is returned to Wastewater Collection Fund reserves. Water Fund Net reserve addition: $4.9 million Retiree Medical ARC Impact: -$9 thousand A transfer of $64 thousand from the Technology Fund represents a return of funding from CIP projects TE-10001 Utilities Customer Billing System Continuous Improvements, and TE-11003 Recurring Credit Card Payment. The projected costs of TE-10001 were less than anticipated. Project TE-11003 has been postponed indefinitely due to a lack of SAP resources and competing priorities. A transfer of $38 thousand to the Technology Fund represents the Water Fund’s share of the City’s payment to SAP for licensing charges. An increase of $21 thousand is due to the change of Water-Gas-Wastewater (WGW) Supervisor to Utilities Supervisor per the Management Compensation Plan. A reduction of $9 thousand is due to an adjustment to Retiree Medical ARC and the transfer of training funds to department budgets. Various capital projects within the Water Fund are either reduced, or are completed and closed (see Attachment A, Exhibit 2). As a result, $4.9 million is returned to Water Fund reserves. Airport Fund Net reserve addition: $1 thousand City of Palo Alto Page 17 Retiree Medical ARC Impact: -$1 thousand A reduction of $1 thousand is due to an adjustment for management development funds. Refuse Fund Net reserve reduction: $29 thousand Retiree Medical ARC Impact: -$2 thousand A transfer of $63 thousand from the Technology Fund represents a return of funding from CIP projects TE-10001 Utilities Customer Billing System Continuous Improvements, and TE-11003 Recurring Credit Card Payment. The projected costs of TE-10001 were less than anticipated. Project TE-11003 has been postponed indefinitely due to a lack of SAP resources and competing priorities. A transfer of $30 thousand to the Technology Fund represents the Refuse Fund’s share of the City’s payment to SAP for licensing charges. A transfer of $70 thousand to the Vehicle Replacement Fund is for the purchase of an all-terrain vehicle and replacement of a skip loader. $15 thousand of this transfer is for the adding an all- terrain vehicle to the fleet and $15 thousand represents the portion of the purchase price that was under-collected for replacement of the skip loader. A reduction of $8 thousand is due to an adjustment to Retiree Medical ARC and the transfer of training funds to department budgets. Storm Drainage Fund Net reserve addition: $11 thousand OPEB ARC Impact: -$1 thousand A transfer of $13 thousand from the Technology Fund represents a return of funding from CIP projects TE-10001 Utilities Customer Billing System Continuous Improvements, and TE-11003 Recurring Credit Card Payment. The projected costs of TE-10001 were less than anticipated. Project TE-11003 has been postponed indefinitely due to a lack of SAP resources and competing priorities A transfer of $6 thousand to the Technology Fund represents the Storm Drainage Fund’s share of the City’s payment to SAP for licensing charges. City of Palo Alto Page 18 Reductions of $3 thousand are due to Retiree Medical ARC adjustments and the transfer of training funds to department budgets. Wastewater Treatment Fund Net reserve addition: $1 thousand OPEB ARC Impact: -$3 thousand A transfer of $15 thousand to the Technology Fund represents the Storm Drainage Fund’s share of the City’s payment to SAP for licensing charges. Reductions of $16 thousand are due to Retiree Medical ARC adjustments and the transfer of training funds to department budgets. Internal Service Funds Information Technology The budget impact of proposed changes to the Information Technology Fund is $0.8 million. Budget adjustments are noted below: $50 thousand revenue increase from CSD and the City Clerk departments for implementing online ticketing for Children’s Theater and automation of the Fair Political Practices Form 700. Expense increases correspondingly for the implementation of these projects is noted in the department budgets. $0.3 million revenue increase from other funds to cover their allocated costs for additional SAP licenses. $0.3 million expense increase for additional SAP licenses, as authorized by Council. $80 thousand expense increase for SAP maintenance. $75 expense increase for additional Civica features for internet, intranet, and Development Services. $0.6 million increased transfer out for the return of funding from CIP projects TE-10001 Utilities Customer Billing System Continuous Improvements, and TE-11003 Recurring Credit Card Payment to their original funding sources. The projected costs of TE-10001 were less than anticipated. Project TE-11003 has been postponed indefinitely due to a lack of SAP resources and competing priorities Reduced expense of $6 thousand from a medical retiree ARC adjustment and the transfer of management training budgets to departments. City of Palo Alto Page 19 Vehicle Replacement Fund Staff proposed midyear changes result in a $1.3 million draw from the Vehicle Replacement Fund reserves. Budget adjustments are noted below: $0.6 million revenue increase from department vehicle purchases. $35 thousand expense increase to cover the cost of the Fleet Organizational Study which was originally not fully budgeted. $1.8 million capital expense increase purchase of vehicles (see CIP section below). $4 thousand expense reduction due to adjustments of Medical Retiree ARC. Print and Mail Fund Proposed adjustments to this fund are minimal and net to $200 and result from the transfer of management development funds and an increase for SAP licensing.000 Special Revenue Funds Law Enforcement Services Fund The Citizens Options for Public Safety (COPS) funding is provided through the state, and can often be mistaken for the federal grant funding of the same title. This funding has been in place since 1997 as part of the California State Budget Act, and is intended to fill the need for additional resources at the local level to ensure public safety. A percentage of the funds are allocated to counties and cities, based upon population, for law enforcement services. Funds must supplement existing services and cannot be used to supplant any existing funds. Each county is required to continue the operation of a Supplemental Law Enforcement Services Fund (SLESF) to receive the State funds and the county’s Supplemental Law Enforcement Oversight Committee (SLEOC) must approve each agency’s proposal for the use of the funds. Prior to sending the proposal to the SLEOC, the bill requires that each city approve the Police Department’s request for expenditure of funds. Each city is also required to deposit the funds into a separate SLESF so that these funds are not intermingled with General Fund dollars. The funds must be expended within two years after receipt. The City of Palo Alto is currently in compliance with all of these requirements. In Fiscal Year 2013, the City has received an allocation of $0.1 million in COPS grant funding. Staff Report #3391 outlined the following uses for this funding: Tactical Thermal Binoculars, Replacement Electronic Control Devices (Tasers), Two-way Authentication Equipment, Cell Phone Analyzer Equipment, Crime Prevention Software, Additional Equipment for the Designated Rifle Officer Program, a Crisis Negotiation Team Phone Console, and a Law Enforcement Personnel Training System. The associated budget adjustments are included in the midyear report. City of Palo Alto Page 20 University Avenue Parking District Transfers out from the fund of $0.1 million are to reimburse the General Fund for one-half of the repairs to Lot J. Residential Parking Permit Fund A transfer of $30 thousand is made to the General Fund to provide temporary staff for parking support services. Debt Service Funds Golf Course Debt Service Fund In August 2011, the City entered into a master lease-purchase agreement with JP Morgan Chase Bank, N.A. Proceeds, together with the COPs reserve funds, were deposited into an escrow account to redeem all of the COPs in the aggregate amount of $3.7 million. The 1998 Golf Course COPs were fully redeemed and the lease-purchase activity will reside in the General Fund. Capital Improvement Program Adjustments to the City’s 2013 Capital Improvement Plan are noted in Exhibit 1, with specific project adjustments described in Exhibit B. All of the CIP changes fall into three basic categories: 1) projects requiring additional appropriations: 2) projects having reductions in appropriations; and 3) projects with other adjustments such as transfer of funding between projects, closing completed projects or creating new projects. It should be noted that the midyear report does not include any recommendations to implement recommendations proposed by the Infrastructure Blue Ribbon Commission (IBRC). Highlights of CIP changes are as follows: General Fund Street Maintenance- CIP-PE-86070 The City received a check in the amount of $91,260 from McNellis Partners for the median (Alma Village) for reimbursement for work that was performed by a City contractor per agreement with the private developer. The contract was funded from PE-86070 and WS-11004. The work has been completed and reimbursement was received by the City. This adjustment will reimburse those projects ($84,295 for PE-86070 and $6,965 for WS-11004). City of Palo Alto Page 21 Sustainability Contingency- AS-10001 The remaining $0.1 million in the project will be returned to the Infrastructure Reserve. This project was originally intended to provide funding for elements of General Fund CIP projects which support the City’s sustainability policy. However, the appropriation set aside for this project was not utilized. Furniture and Technology for Library Projects- LB-11000 From Fiscal Year 2011 to Fiscal Year 2013, a total of $6.0 million was appropriated for purchase of furniture, equipment and technology for the Measure N library bond projects. Funding of $2.375 million for this project has been received by the Palo Alto Library Foundation. Original cost estimates for this project were initially too high. The appropriation is being reduced by $3.625 million to reflect the amount actually received. Transportation and Parking Improvements- PL-12000 Reduce funding by $0.015 million. This amount will be transferred to the General Fund to cover temporary salaries related to the administration of parking permit programs. Mitchell Park Library and Community Center New Construction- PE-09006 Increase funding by $0.24 million. The current construction contractor for the Mitchell Park Library and Community Center (MPLCC) project has failed to perform the work in an acceptable, timely and well-coordinated manner. According to the latest project schedule the facility will open a year and a half behind the original schedule due to numerous issues and impasses and Public Works is not confident the contractor will complete all or portions of the work in a timely, coordinated, cost-efficient or acceptable manner. Public Works Engineering wishes to enter into an on-call construction contract to provide task order construction services for the MPLCC project to ensure a completed project in the event the current contractor does not perform. Enterprise Funds Consistent with the recommendations of the City Auditor’s Utilities Reserves Audit, the Utilities Department is disencumbering funds for several projects as part of an ongoing effort to improve CIP project management and budgeting for projects. Electric Fund SCADA System Upgrade- EL-02010 City of Palo Alto Page 22 Reduce funding by $0.14 million. It is projected that this project will be completed by the end of Fiscal Year 2013. The cost for upgrading of the SCADA system came in below estimated amounts and these funds are not required. Electric Utility GIS- EL-02011 Reduce funding by $0.05 million. The original project scope has been essentially completed, and these funds are not required. Middlefield / Colorado 4/12 kV Conversion- EL-09002 Reduce funding by $0.04 million. The project has been completed, and these funds are not required. Reconductor 60kV OH Transmission System- EL-11015 Reduce funding by $0.4 million. The scope of work for this project has been reduced because of the uncertainty related to the construction of the Performing Arts Center (and related buildings) and the impact this construction will have on the existing transmission line in the area. Electric Vehicle Charging Infrastructure- EL-11016 Reduce funding by $0.117 million. The project has been completed, and these funds are not required. Hopkins Substation Rebuild- EL-12003 Reduce funding by $0.25 million. Staff is reevaluating the need and timing of this upgrade. The work at Colorado and Hopkins Substations are somewhat related due their proximity to one another and impact to the overall area electric service master plan. Preliminary load projections indicate that this work will not be required before Fiscal Year 2015. Funding for this project or any iteration of such shall be resubmitted for approval. Colorado 20/21 - Transformer Replacements- EL-13005 Reduce funding by $0.1 million. Staff is reevaluating the need and timing of this upgrade. The work at Colorado and Hopkins Substations are somewhat related due their proximity to one another and impact to the overall area electric service master plan. Preliminary load projections indicate that this work will not be required before Fiscal Year 2015. Funding for this project or any iteration of such shall be resubmitted for approval. City of Palo Alto Page 23 Communications System Improvements- EL-89031 Reduce funding by $0.3 million. This continuous improvement project for the communication system has been placed on hold due to higher priority projects and limited staffing. Gas Fund Cooperatively-Owned Backup Generators (COBUG Upgrade) - GS-13003 This is a new project with funding of $0.315 million added in this midyear action. This project is to add emissions equipment to the Cooperatively-owned Backup Generators (COBUGs), four City-owned generators. The generators are required to comply with new Federal Environmental Protection Agency (EPA) emissions rules for internal combustion engines by October 2013. Gas Main Replacement Project 18- GS-08011 Reduce funding by $0.25 million. The construction phase of this project has been completed and funds not required are being returned to the reserves. Gas Main Replacement Project 22- GS-12001 Reduce funding by $0.468 million. This project has been deferred to Fiscal Year 2015. Gas main replacement projects 19B/20/21 will begin in the second half of Fiscal Year 2013 and will take approximately three years to complete. Wastewater Collection Fund Wastewater Collection System Rehab/Aug. Project 20- WC-07004 Reduce funding by $0.15 million. The construction phase of this project has been completed and funds not required are being returned to the reserves. Wastewater Collection System Rehab/Aug. Project 21- WC-08012 Reduce funding by $0.08 million. The construction phase of this project has been completed and funds not required are being returned to the reserves. Wastewater Collection System Rehab/Aug. Project 26- WC-13001 Reduce funding by $0.31 million. The design phase of this project is deferred to Fiscal Year 2014 due to construction of Wastewater Collection System Rehab/Aug. projects 24 & 25 in Fiscal Year 2013. Water Fund Water Supply System Improvements- WS-11004 City of Palo Alto Page 24 The City received a check in the amount of $91,260 from McNellis Partners for the median (Alma Village) for reimbursement for work that was performed by a City contractor per agreement with the private developer. The contract was funded from PE-86070 and WS-11004. The work has been completed and reimbursement was received by the City. This adjustment will reimburse those projects ($84,295 for PE-86070 and $6,965 for WS-11004). Water Recycling Facilities- WS-07001 Reduce funding by $0.2 million. The recycled water project has experienced significant delays and remains in the environmental review process. There are sufficient funds to complete the environmental documents. Until the environmental documents are complete and the project financial plan has been approved, surplus funds are not required and are being returned. Emergency Water Supply Project- WS-08002 Reduce funding by $1.0 million. The El Camino reservoir construction is 65% complete. Mayfield Pump Station construction is 75% complete. Rehabilitation construction for existing wells is 90% complete. There is sufficient budget encumbered and available to complete the remaining projects. Water Main Replacement Project 22- WS-08017 Reduce funding by $0.142 million. This project has been completed and no additional work is planned. Remaining funds are being returned to the reserves. Water Main Replacement Project 24- WS-10001 Reduce funding by $0.2 million. The construction contract has been awarded including contingency for any unforeseen work outside of scope. Remaining funds are being returned to the reserves. Water Main Replacement Project 25- WS-11000 Reduce funding by $2.74 million. This project has been deferred to Fiscal Year 2014. Water main replacement projects 23 and 24 are scheduled to be completed in Fiscal Year 2014. The bid for Project 25 is scheduled to go out in the beginning of Fiscal Year 2015. Water Main Replacement Project 26- WS-12001 Reduce funding by $0.305 million. The design phase of this project has been deferred to Fiscal Year 2014 in conjunction with the delay of Water Main Replacement Project 25. City of Palo Alto Page 25 Vacuum Excavation Equipment- WS-11001 Reduce funding by $0.275 million. The purchase of this equipment is being included in VR- 13000 within the Vehicle Replacement Fund. Storm Drainage Fund Storm Drain System Replacement and Rehabilitation- SD-06101 The City received a reimbursement of $8,474 from the Association of Bay Area Governments (ABAG) for installation of a trash capture device. Internal Service Funds Vehicle Replacement and Maintenance Fund Scheduled Vehicle and Equipment Replacements- VR-13000 Increase funding by $1.8 million. Due to the Fleet Audit, the City has deferred the annual equipment replacement CIP for 3 years with Fiscal Year 2013 being the first year we began funding the program. There are numerous pieces of equipment that are in high need of replacement based on their age, condition, downtime and impacts to the departments. This midyear request has been reviewed and approved by the Fleet Review Committee. The purchases include two flush trucks that operate 24/7 to maintain the sewer system and respond to overflows; an asphalt patch truck; a vacuum digging truck to provide non-invasive excavation around gas, water and sewer lines; two lawn mowers to address the on-going mowing requirements at city facilities and the school play fields; a bobcat used for sidewalk maintenance; a skip loader and a small 4-wheel transport vehicle that can carry 2 staff plus tools to support post-closure activities at the landfill. Technology Fund Utilities Customer Billing System Continuous Improvements- TE-10001 Reduce funding by $0.4 million. The projected costs to implement the legal and legislative requirements in the Utilities billing system were less than expected. Funds are being returned to various Enterprise Funds which were the original funding sources. Recurring Credit Card Payment- TE-11003 Reduce funding by $0.15 million. This project has been placed on hold due to insufficient SAP resources and competing priorities. Funds are being returned to various Enterprise Funds which were the original funding sources. Fiscal Year 2013 Midyear Capital Improvement Program Projects Status Report City of Palo Alto Page 26 This report provides the Finance Committee with information on the status of the City’s Capital Improvement Program (CIP) projects as of December 31, 2012. The following graph summarizes all General Fund projects by project category and provides five years of actual expenditures. Information about individual projects within each project category is provided in Attachment D. In the attached matrix (Attachment E), the City departments have submitted information on their projects and commented on any issues that might cause a change in the scope or timing of the projects. The report is intended to update Council on the progress of all CIP projects opened at the beginning of Fiscal Year 2013, and on those that were added or completed during the fiscal year. The matrix categorizes CIP projects into minor projects (projects that can be completed within a one-year period) and multi-year projects (projects that have multi-year budgets and/or complex implementation schedules with identifiable phases). The project status portion of the matrix identifies the phase of the project as of December 31, 2012 and illustrates how much progress was made. Three distinct phases are utilized, as follows: Phase Activities Pre-Design Preparation of a feasibility study; Development of a City of Palo Alto Page 27 master plan; Definition of a project scope; or Preparation of an Environmental Impact Report Design Hiring a design consultant; Completion of project design; Soliciting bids or proposals Construction Acquisition of major equipment; Installation; Implementation of a project In the attached matrix (Attachment D), projects are listed by department for the General Fund and by fund for the Enterprise and Internal Service Funds. The matrix also includes information on the total budget of the project from inception; available budget as of the beginning of the fiscal year; fiscal year expenditures, contingencies, and encumbrances through December 31st; remaining balance in the project budget as of midyear; and the percentage of completion for the project. The matrix does not include “continuous” projects. These projects, such as water meter replacement, have no definitive beginning or end dates and receive ongoing funding to reflect continuing replacement cycles or commitments. Continuous projects are listed by responsible department and fund and include five years of actual expenditures including the current fiscal year through December 31, 2012 (Attachment E). Table of Organization Changes The proposed adjustments to the Table of Organization (Attachment A, Exhibit 3) include the following: FY 2013 Midyear Position Change Fund Summary FY 2013 Adopted FY 2013 Midyear Change FY 2013 Adjusted General Fund 578.06 1.65 579.71 Enterprise Fund 357.82 0.00 357.82 Other Funds 78.47 (0.65) 77.82 Total 1014.35 1.00 1015.35 City of Palo Alto Page 28 General Fund City Auditor’s Office o Add 0.50 FTE Performance Auditor Administrative Services Department o Reallocate 0.10 FTE Assistant Director, Administrative Services from Other Funds - Information Technology * o Reallocate 0.05 FTE Director Adm Svcs/ Chief Financial Officer from Other Funds - Information Technology * Community Services Department o Title change 2.00 FTE from Supt Parks to Community Services Superintendent o Title change 2.00 FTE from Mgr Arts to Community Services Senior Program Manager o Title change 2.00 FTE from Supv Open Space to Community Services Manager o Title change 1.00 FTE from Supv Parks to Community Services Manager o Title change 3.00 FTE from Supv Rec Prog to Community Services Manager Human Resources Department o Reclassify 1.00 FTE Human Resources Asst Conf to Human Resources Representative o Reclassify 1.00 FTE Sr. Administrator Human Resources to Mgr, Employee Relations Library Services Department o Increase Sr. Librarian from 0.50 FTE to 1.00 FTE Planning & Community Environment Department o Add 1.00 FTE Senior Planner o Reallocate 0.50 FTE Management Analyst from Other Funds - Special Revenue Funds* Police Department o Add 1.00 FTE Senior Management Analyst o Eliminate 0.50 FTE Animal Control Officer o Reduce Animal Control Officer from 1.00 FTE to 0.50 FTE o Eliminate 1.00 FTE Animal Services Supervisor Enterprise Funds Utilities Department o Title change 1.00 FTE Supervisor Water Transmission to Utilities Supervisor o Title change 5.00 FTE WGW Supervisor to Utilities Supervisor Other Funds Special Revenue Fund o Reallocate 0.50 FTE Management Analyst to General Fund – Planning & Community Environment * City of Palo Alto Page 29 Technology Fund o Reallocate 0.10 FTE Assistant Director, Administrative Services to General Fund – Administrative Services o Reallocate 0.05 FTE Director Adm Svcs/Chief Financial Officer to General Fund – Administrative Services * Change is to correct the Table of Organization only. Funding was adjusted in the Fiscal Year 2013 adopted budget. Resource Impact Adoption of the attached ordinance will allow for adjustments to the Fiscal Year 2013 budget, along with amendments to the Table of Organization, and General Fund CIP projects. With the approval of this ordinance, the projected ending balance of the General Fund Budget Stabilization Reserve is $30.4 million. The Capital Fund Infrastructure Reserve is projected to end with a balance of $14.0 million, an increase of $3.5 million. The projected ending Rate Stabilization Reserve total for all Enterprise funds increases by $14.2 million. Policy Implications These recommendations are consistent with existing City policies. Environmental Assessment This is not a project under Section 21065 for purposes of the California Environmental Quality Act (CEQA). Attachments: Attachment A - Midyear Budget Amendment Ordinance (BAO) (PDF) Attachment A, Exhibit 1 - Proposed Fiscal Year 2013 Midyear Adjustments (PDF) Attachment A, Exhibit 2 - Fiscal Year 2013 Midyear CIP Adjustments (PDF) Attachment A, Exhibit 2-A- Cooperatively-Owned Backup Generators (GS-13003) CIP Project (PDF) Attachment A, Exhibit 3 - Amendments to Fiscal Year 2013 Table of Organization (PDF) City of Palo Alto Page 30 Attachment B - Resolution of the Council of the City of Palo Alto Amending the 2011- 2013 Compensation Plan for Management and Professional (PDF) Attachment C - General Fund CIP Project Expenditures For FYs 2009-2013 (PDF) Attachment D - Fiscal Year 2013 Midyear CIP Project Status Report (PDF) Attachment E - Continuous Capital Projects Expenditures for Fiscal Years 2009-2013 (PDF) ATTACHMENT A Page 1 of 3 ORDINANCE NO. ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 2013 TO ADJUST BUDGETED REVENUES AND EXPENDITURES IN ACCORDANCE WITH THE RECOMMENDATIONS IN THE MIDYEAR REPORT The City Council of the City of Palo Alto does ordain as follows: SECTION 1. The City Council of the City of Palo Alto finds and determines as follows: A. Pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto, the Council on June 18, 2012 did adopt a budget for fiscal year 2013, including a Table of Organization describing the staffing for each department; and B. After reviewing the current budgeted revenues and expenditures for Fiscal Year 2013, adjustments to the budget are recommended to more accurately reflect year-end projections; and C. Various staffing adjustments require an amendment to the Table of Organization including the title change from WGW Supervisor to Utilities Supervisor, title change from Supervisor Water Transmissions to Utilities Supervisor, title change from Superintendent Parks to Community Services Superintendent, title change Manager Arts to Community Services Senior Program Manager, title change Supervisor Open Space to Community Services Manager, title change Supervisor Recreation Programs to Community Services Manager, add 0.50 FTE Performance Auditor, add 0.50 FTE Senior Librarian, add 1.0 FTE Senior Planner, add 1.0 FTE Senior Management Analyst, reclassify 1.0 FTE Senior Administrator Human Resources to Manager, Employee Relations, reduce 1.0 FTE Animal Control Officer, reduce 1.0 Animal Services Supervisor; and D. City Council authorization is needed to amend the fiscal year 2013 budget as hereinafter set forth. SECTION 2. The General Fund Budget Stabilization Reserve is hereby increased by the sum of Three Million One Hundred Ninety- Seven Thousand Eight Hundred Sixty-Eight Dollars ($3,197,868), as described in Exhibit 1. As a result of this change, the Budget Stabilization Reserve will change to Thirty Million Three Hundred Seventy-Four Thousand Dollars ($30,374,000). SECTION 3. The Capital Fund Infrastructure Reserve is hereby increased by the sum of Three Million Four Hundred Sixty Three Thousand Five Hundred Fifty-Seven Dollars ($3,463,557), as described in Exhibit 1. As a result of this change, the Infrastructure Reserve will change to Fourteen Million Two ATTACHMENT A Page 2 of 3 Hundred Forty Three Thousand Five Hundred Seventy Dollars ($14,243,570). SECTION 4. The Supply Rate Stabilization Reserve in the Electric Fund is hereby increased by the sum of Six Million Eight Hundred Ninety Six Thousand Seven Hundred Seventy Dollars ($6,896,770) as described in Exhibit 1. SECTION 5. The Distribution Rate Stabilization Reserve in the Electric Fund is hereby increased by the sum of One Million Five Hundred Sixty-Two Thousand Two Hundred Eighty-Six Dollars ($1,562,286) as described in Exhibit 1. SECTION 6. The Rate Stabilization Reserve in the Fiber Optics Fund is hereby increased by the sum of One Thousand Seven Hundred Fifty-Seven Dollars ($1,757) as described in Exhibit 1. SECTION 7. The Supply Rate Stabilization Reserve in the Gas Fund is hereby decreased by the sum of Three Hundred Fifty-Seven Thousand Three Hundred Eighty-Seven Dollars ($357,387) as described in Exhibit 1. SECTION 8. The Distribution Rate Stabilization Reserve in the Gas Fund is hereby decreased by the sum of Three Hundred Sixty Thousand One Hundred Sixty-Three Dollars ($360,163) as described in Exhibit 1. SECTION 9. The Rate Stabilization Reserve in the Wastewater Collection Fund is hereby increased by the sum of One Hundred Thirty-Three Thousand Ninety-Nine Dollars ($133,099) as described in Exhibit 1. SECTION 10. The Rate Stabilization Reserve in the Water Fund is hereby increased by the sum of Four Million Eight Hundred Seventy-Three Thousand Three Hundred Twenty-Six Dollars ($4,873,326) as described in Exhibit 1. SECTION 11. The Rate Stabilization Reserve in the Refuse Fund is hereby decreased by the sum of Twenty Eight Thousand Nine Hundred Thirty-Six Dollars ($28,936) as described in Exhibit 1. SECTION 12. The Rate Stabilization Reserve in the Storm Drainage Fund is hereby increased by the sum of Ten Thousand Five Hundred Thirty-Eight Dollars ($10,538) as described in Exhibit 1. SECTION 13. The Rate Stabilization Reserve in the Wastewater Treatment Fund is hereby increased by the sum of One Thousand Two Hundred Ninety-Six Dollars ($1,296) as described in Exhibit 1. SECTION 14. The reserve balance in the Airport Fund is hereby increased by the sum of One Thousand Dollars ($1,000) as described in Exhibit 1. ATTACHMENT A Page 3 of 3 SECTION 15. Adjustments to other funds are made as shown in Exhibit 1. These changes impact Special Revenue, Internal Service, and Other Funds Reserves as indicated in Exhibit 1. SECTION 16. Adjustments to decrease or increase amounts allocated to various Capital Improvement Projects are made as shown in Exhibit 2. These changes impact the General Fund Budget Stabilization Reserve and the Infrastructure Reserve and are reflected in the adjustments as shown in Exhibit 1. SECTION 17. The Table of Organization is hereby amended to reflect the changes shown in Exhibit 3, which is attached hereto and incorporated herein by reference. These changes impact Reserves and are accounted for in the changes shown in Exhibit 1. SECTION 18. As specified in Section 2.28.080 of the Palo Alto Municipal Code, a two-thirds vote of the City Council is required to adopt this ordinance. SECTION 19. The Council of the City of Palo Alto hereby finds that this midyear adjustment is not a project under Section 21065 of the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. Capital improvement projects described in this ordinance will be assessed individually as appropriate. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Sr. Asst. City Attorney City Manager ____________________________ Director of Admin. Services ATTACHMENT A, EXHIBIT 1 CITY OF PALO ALTO FISCAL YEAR 2013 MIDYEAR FINANCIAL REPORT GENERAL FUND (in thousands) BUDGET ACTUALS (as of 12/31/12) Adopted Adjusted Midyear Midyear Pre % Midyr Categories Budget Budget Budget Changes Encumbr Encumbr Actual Budget Revenues & Other Sources Sales Tax 22,545 22,545 23,364 819 ‐ ‐ 7,805 33% Property Tax 27,306 27,306 27,912 606 ‐ ‐ 9,813 35% Transient Occupancy Tax 9,591 9,591 10,439 848 ‐ ‐ 4,519 43% Utility Users Tax 10,731 10,731 10,825 94 ‐ ‐ 5,296 49% Documentary Transfer Tax 5,078 5,078 6,800 1,722 ‐ ‐ 3,090 45% Other Taxes and Fines 2,058 2,058 2,058 ‐ ‐ 1,086 53% Charges for Services 23,682 23,682 23,616 (66) ‐ ‐ 8,717 37% Permits & Licenses 6,614 6,614 6,693 79 ‐ ‐ 3,888 58% Return on Investment 959 959 774 (185) ‐ ‐ 415 54% Rental Income 12,640 12,640 12,640 ‐ ‐ 6,451 51% From Other Agencies 157 157 170 13 ‐ ‐ 30 18% Charges To Other Funds 10,874 10,874 10,834 (40) ‐ ‐ 5,530 51% Other Revenues 1,188 1,188 1,244 56 ‐ ‐ 774 62% Total Revenues 133,423 133,423 137,369 3,946 ‐ ‐ 57,415 42% Operating Transfers‐In 18,995 18,995 19,215 220 ‐ ‐ 9,498 49% Encumbrances and Reappropriation 4,386 4,386 ‐ From Infrastructure Reserve ‐ ‐ ‐ ‐ Total Sources of Funds 152,418 156,804 160,970 4,166 ‐ ‐ 66,912 43% Expenditures & Other Uses City Attorney 2,436 2,789 2,791 2 70 391 1,075 55% City Auditor 965 1,009 1,020 11 ‐ 55 481 53% City Clerk 1,558 1,583 1,609 26 12 10 529 34% City Council 465 500 501 1 ‐ 108 172 56% City Manager 2,578 3,075 3,075 ‐ 192 104 1,115 46% Administrative Services 7,156 7,379 7,593 214 62 109 3,290 46% Community Services 21,893 22,412 22,496 84 130 2,507 10,405 58% Public Safety 59,914 60,790 60,711 (79) 255 908 28,351 49% Human Resources 2,982 3,024 3,035 11 ‐ 88 1,333 47% Library 6,996 7,634 7,662 28 9 691 3,096 50% Planning and Community Environment 11,111 12,170 12,294 124 201 830 4,910 48% Public Works 13,947 14,513 14,545 32 820 732 6,099 53% Non‐Departmental (1,108) (1,223) (346) 877 ‐ ‐ 527 ‐152% Cubberly Lease 7,133 7,133 7,133 ‐ ‐ ‐ 3,505 49% Total Expenditures 138,026 142,788 144,119 1,331 1,751 6,532 64,889 51% Operating Transfers‐Out 14,782 14,962 14,599 (363) ‐ ‐ 7,357 50% Total Uses of Funds 152,808 157,750 158,718 968 1,751 6,532 72,246 51% Net Surplus/(Deficit) (390) (946) 2,252 3,198 Budget Amendments Authorized by Council: BAO 5163 ‐ Development Center furnishing 191 191 BAO 5174 ‐ EKG monitors CIP (FD‐12000) 180 180 BAO 5177 ‐ Infrastructure measure polling 90 90 BAO 5186 ‐ Infrastructure measure outreach 95 95 Total Augmentations Authorized by Council ‐ 556 556 ‐ Net Surplus/(Deficit) Excluding BAOs (390) (390) 1,696 3,198 BSR Balance 27,732 27,176 30,374 3,198 BSR % of Total Use of Funds (A) 18.15% 17.78% 19.88% (A) FY 2012 closed with a $4.4 million surplus. As a result, $7.7 million was transferred to the infrastructure reserve leaving the BSR beginning balance at $28.1 million, or 18.5 percent, to start FY 2013. 1 of 23 ATTACHMENT A, EXHIBIT 1 ACTUALS Adopted Adjusted Midyear Midyear Pre- % of Budget Budget Budget Changes Encumbr Encumbr Actual Midyear Budget Sources of Funds Net Sales 118,906 118,906 118,942 36 58,223 49% Interest Income 3,635 3,635 3,635 1,698 47% Other Income 12,718 12,718 12,981 263 3,975 31% Reapprop/Encumbrances 19,169 19,169 0% Total Sources 135,259 154,428 154,727 299 - - 63,896 47%** Uses of Funds Utility Purchases 72,991 73,054 66,193 (6,861) 100 30,711 47% Salaries & Benefits 11,522 11,520 11,486 (34) 5,300 46% Contract Services 4,389 6,481 6,481 3 2,620 1,141 58% Supplies and Materials 805 818 818 20 32 263 39% Facility and Equipment Purchases 44 44 44 0% General Expenses 4,508 6,864 6,864 1,886 1,020 974 57% Rent and Leases 3,948 3,948 3,948 1,933 49% Allocated Charges 8,779 8,778 8,778 3,183 36% Debt Service 9,486 9,485 9,485 4,595 48% Subtotal 116,472 120,992 114,097 (6,895) 1,909 3,772 48,100 47% Equity Transfer 11,768 11,768 11,768 5,884 50% Operating Transfers Out 322 322 454 132 198 44% Capital Improvement Program 10,910 25,468 24,071 (1,397) 1,660 4,808 7,164 57% Total Uses 139,472 158,550 150,390 (8,160) 3,569 8,580 61,346 49% Net To (From) Reserves (4,213) (4,122) 4,337 8,459 Beginning Reserves 126,112 128,134 128,134 - Projected Ending Reserves 121,899 124,012 132,471 8,459 ** Excludes encumbrances and reappropriation BUDGET (as of 12-31-12) CITY OF PALO ALTO FISCAL YEAR 2013 MIDYEAR BUDGET SUMMARY ELECTRIC FUND (in thousands of dollars) 2 of 23 2/26/2013 ATTACHMENT A, EXHIBIT 1 ACTUALS Adopted Adjusted Midyear Midyear Pre- % of Budget Budget Budget Changes Encumbr Encumbr Actual Midyear Budget Sources of Funds Net Sales 2,850 2,850 2,850 - 1,591 56% Interest Income 303 303 303 - 178 59% Other Income 724 724 725 1 Reapprop/Encumbrances 781 781 - Total Sources 3,877 4,658 4,659 1 - - 1,769 46%** Uses of Funds Salaries & Benefits 766 765 764 (1) 355 46% Contract Services 168 251 251 3 27 35 26% Supplies and Materials 11 11 11 7 64% General Expenses 22 22 22 1 5% Rent and Leases 28 28 28 13 46% Allocated Charges 393 393 393 166 42% Subtotal 1,388 1,470 1,469 (1) 3 27 577 41% Operating Transfers Out 2 2 6 4 1 17% Capital Improvement Program 400 1,097 1,097 - 7 92 9% Total Uses 1,790 2,569 2,572 3 3 34 670 27% Net To (From) Reserves 2,087 2,089 2,087 (2) Beginning Reserves 12,729 13,470 13,470 Projected Ending Reserves 14,816 15,559 15,557 (2) ** Excludes encumbrances and reappropriation BUDGET (as of 12-31-12) CITY OF PALO ALTO FISCAL YEAR 2013 MIDYEAR BUDGET SUMMARY FIBER OPTICS FUND (in thousands of dollars) 3 of 23 2/26/2013 ATTACHMENT A, EXHIBIT 1 ACTUALS Adopted Adjusted Midyear Midyear Pre- % of Budget Budget Budget Changes Encumbr Encumbr Actual Midyear Budget Sources of Funds Net Sales 37,016 37,016 36,555 (461) 13,445 37% Interest Income 813 813 813 408 50% Other Income 1,704 1,704 1,816 112 460 25% Reapprop/Encumbrances 19,211 19,211 - Total Sources 39,533 58,744 58,395 (349) - - 14,313 37%** Uses of Funds Utility Purchases 16,286 16,334 15,572 (762) 4,028 4,046 52% Salaries & Benefits 4,543 4,554 4,555 1 2,064 45% Contract Services 1,792 2,933 2,933 6 2,890 328 110% Supplies and Materials 472 464 464 120 123 52% Facility and Equipment Purchases 43 43 43 28 113 328% General Expenses 704 863 863 144 164 36% Rent and Leases 321 321 321 34 11% Allocated Charges 4,019 4,019 4,019 1,561 39% Debt Service 803 803 803 124 15% Subtotal 28,983 30,334 29,573 (761) 6 7,210 8,557 53% Equity Transfer 5,971 5,971 5,971 2,985 50% Operating Transfers Out 207 207 304 97 158 52% Capital Improvement Program 7,756 23,772 23,369 (403) 16,400 1,091 2,821 87% Total Uses 42,917 60,284 59,217 (1,067) 16,406 8,301 14,521 66% Net To (From) Reserves (3,384) (1,540) (822) 718 Beginning Reserves 14,929 16,992 16,992 - Projected Ending Reserves 11,545 15,452 16,170 718 ** Excludes encumbrances and reappropriation CITY OF PALO ALTO FISCAL YEAR 2013 MIDYEAR BUDGET SUMMARY GAS FUND (in thousands of dollars) BUDGET (as of 12-31-12) 4 of 23 2/26/2013 ATTACHMENT A, EXHIBIT 1 ACTUALS Adopted Adjusted Midyear Midyear Pre- % of Budget Budget Budget Changes Encumbr Encumbr Actual Midyear Budget Sources of Funds Net Sales 15,124 15,124 15,124 - 7,465 49% Interest Income 397 397 397 - 191 48% Other Income 908 908 942 34 1,088 115% Reapprop/Encumbrances 11,044 11,044 - - Total Sources 16,429 27,473 27,507 34 - - 8,744 53%** Uses of Funds Utility Purchases 8,556 8,556 8,556 4,278 50% Salaries & Benefits 2,004 2,015 2,020 5 833 41% Contract Services 280 360 360 4 145 46 54% Supplies and Materials 241 231 231 22 82 99 88% Facility and Equipment Purchases - 1 #DIV/0! General Expenses 97 97 97 47 48% Rent and Leases 176 176 176 79 45% Allocated Charges 2,126 2,126 2,126 756 36% Debt Service 129 129 129 0% Subtotal 13,609 13,690 13,695 5 26 228 6,138 47% Operating Transfers Out 147 147 583 436 127 22% Capital Improvement Program 4,354 15,298 14,758 (540) 5,476 1,745 49% Total Uses 18,110 29,135 29,036 (99) 26 5,704 8,010 47% Net To (From) Reserves (1,681) (1,662) (1,529) 133 Beginning Reserves 7,579 5,751 5,751 - Projected Ending Reserves 5,898 4,089 4,222 133 ** Excludes encumbrances and reappropriation CITY OF PALO ALTO FISCAL YEAR 2013 MIDYEAR BUDGET SUMMARY WASTEWATER COLLECTION FUND (in thousands of dollars) BUDGET (as of 12-31-12) 5 of 23 2/26/2013 ATTACHMENT A, EXHIBIT 1 ACTUALS Adopted Adjusted Midyear Midyear Pre- % of Budget Budget Budget Changes Encumbr Encumbr Actual Midyear Budget Sources of Funds Net Sales 34,446 34,446 34,446 20,481 59% Interest Income 749 749 749 327 44% Other Income 3,392 3,392 3,463 71 1,827 53% Reapprop/Encumbrances 34,139 34,139 - Total Sources 38,587 72,726 72,797 71 - - 22,635 59%** Uses of Funds Utility Purchases 15,940 15,940 15,940 7,455 8,292 99% Salaries & Benefits 5,210 5,209 5,221 12 2,670 51% Contract Services 743 1,152 1,152 4 438 110 48% Supplies and Materials 451 541 541 42 122 257 78% Facility and Equipment Purchases 11 12 12 2 1 25% General Expense 452 454 454 176 39% Rents and Leases 3,001 3,001 3,001 994 33% Allocated Charges 3,395 3,394 3,394 1,439 42% Debt Service 3,219 3,219 3,219 813 25% Subtotal 32,422 32,922 32,934 12 46 8,017 14,752 69% Equity Transfer - - - - Operating Transfers Out 1,705 1,705 1,743 38 716 42% Capital Improvement Program 6,115 32,384 27,532 (4,852) 25 12,164 6,373 57% Total Uses 40,242 67,011 62,209 (4,802) 71 20,181 21,841 63% Net To (From) Reserves (1,655) 5,715 10,588 4,873 Beginning Reserves 10,488 8,997 8,997 Projected Ending Reserves 8,833 14,712 19,585 4,873 ** Excludes encumbrances and reappropriation CITY OF PALO ALTO FISCAL YEAR 2013 MIDYEAR BUDGET SUMMARY WATER FUND (in thousands of dollars) BUDGET (as of 12-31-12) 6 of 23 2/26/2013 ATTACHMENT A, EXHIBIT 1 ACTUALS Adopted Adjusted Midyear Midyear Pre- % of Budget Budget Budget Changes Encumbr Encumbr Actual Midyear Budget Sources of Funds Net Sales 26,794 26,794 26,794 - - 13,497 50% Interest Income 209 209 209 - - 98 47% Other Income 3,372 3,522 3,585 63 - - 1,607 45% Reapprop/Encumbrances 2,083 2,083 0% Total Sources 30,375 32,608 32,671 63 - - 15,202 47%** Uses of Funds GreenWaste Hauling Contract 13,315 13,262 13,262 2 5,103 38% Salaries and Benefits 3,293 3,295 3,287 (8) 1,397 43% Contract Services 5,791 7,225 7,225 76 1,006 2,688 52% Supplies and Materials 85 85 85 8 42 59% Facility and Equipment Purchases 3 3 3 0% General Expenses 80 80 80 540 675% Rents and Leases 2,709 2,709 2,709 0% Allocated Charges 2,747 2,747 2,747 2,677 97% Debt Service 625 625 625 0% Subtotal 28,648 30,031 30,023 (8) 76 1,016 12,447 45% Operating Transfers Out 306 306 406 100 153 38% Capital Improvement Program 175 1,368 1,368 350 370 187 66% Total Uses 29,129 31,705 31,797 92 426 1,386 12,787 46% Net (From) Landfill Closure Liab - - Net To (From) Reserves 1,246 903 874 (29) Beginning Reserves (3,187) (3,410) (3,410) - Projected Ending Reserves (1,941) (2,507) (2,536) (29) ** Excludes encumbrances and reappropriation CITY OF PALO ALTO FISCAL YEAR 2013 MIDYEAR BUDGET SUMMARY REFUSE FUND (in thousands of dollars) BUDGET (as of 12-31-12) 7 of 23 2/26/2013 ATTACHMENT A, EXHIBIT 1 ACTUALS Adopted Adjusted Midyear Midyear Pre- % of Budget Budget Budget Changes Encumbr Encumbr Actual Midyear Budget Sources of Funds Net Sales 5,620 5,620 5,620 2,950 52% Interest Income 158 158 158 - 83 53% Other Income 113 113 113 - 11 10% Reapprop/Encumbrances 3,722 3,735 13 - Total Sources 5,891 9,613 9,626 13 - - 3,044 52%** Uses of Funds Salaries and Benefits 1,007 1,005 1,001 (4) 463 46% Contract Services 371 514 514 15 67 273 69% Supplies and Materials 93 93 93 17 34 55% Facility and Equipment Purchases 8 8 8 0% General Expenses 18 59 59 199 337% Rents and Leases 6 6 6 0% Allocated Charges 870 870 870 401 46% Debt Service 947 947 947 0% Subtotal 3,320 3,502 3,498 (4) 15 84 1,370 42% Operating Transfers Out 13 13 19 6 6 32% Capital Improvement Program 3,518 6,828 6,828 1,300 1,749 45% Total Uses 6,851 10,343 10,345 2 15 1,384 3,125 44% Net Surplus (Deficit) (960) (730) (719) 11 Beginning Reserves 1,667 2,726 2,726 - Projected Ending Reserves 707 1,996 2,007 11 ** Excludes encumbrances and reappropriation CITY OF PALO ALTO FISCAL YEAR 2013 MIDYEAR BUDGET SUMMARY STORM DRAINAGE FUND (in thousands of dollars) BUDGET (as of 12-31-12) 8 of 23 2/26/2013 ATTACHMENT A, EXHIBIT 1 ACTUALS Adopted Adjusted Midyear Midyear Pre- % of Budget Budget Budget Changes Encumbr Encumbr Actual Midyear Budget Sources of Funds Net Sales 13,430 13,430 13,430 - 10,910 81% Interest Income 415 415 415 - 195 47% Other Income 8,618 8,618 8,618 - 8 0% Reapprop/Encumbrances 8,042 8,042 - Total Sources 22,463 30,505 30,505 - - - 11,113 49%** Uses of Funds Salaries and Benefits 9,797 9,784 9,768 (16) 3 333 4,432 49% Contract Services 1,928 3,476 3,476 51 1,332 2,082 100% Supplies and Materials 1,422 1,830 1,830 655 36% Facility and Equipment Purchases 10 10 10 0% General Expenses 414 414 414 455 110% Rents and Leases - 0% Allocated Charges 4,642 4,642 4,642 2,456 53% Debt Service 823 823 823 0% Subtotal 19,036 20,979 20,963 (16) 54 1,665 10,080 56% Operating Transfers Out 12 12 27 15 6 22% Capital Improvement Program 2,643 8,730 8,730 - 2,616 2,898 1,472 80% Total Uses 21,691 29,721 29,720 (1) 2,670 4,563 11,558 63% Net To (From) Reserves 772 784 785 1 Beginning Reserves 4,949 9,949 9,949 - Projected Ending Reserves 5,721 10,733 10,734 1 ** Excludes encumbrances and reappropriation CITY OF PALO ALTO FISCAL YEAR 2013 MIDYEAR BUDGET SUMMARY WASTEWATER TREATMENT FUND (in thousands of dollars) BUDGET (as of 12-31-12) 9 of 23 2/26/2013 ATTACHMENT A, EXHIBIT 1 ACTUALS Adopted Adjusted Midyear Midyear Pre- % of Budget Budget Budget Changes Encumbr Encumbr Actual Midyear Budget Sources of Funds Net Sales - - - - - - - 0% Interest Income - - - - - - 1 0% Other Income 310 310 310 - - - 155 50% Reapprop/Encumbrances 48 48 0% Total Sources 310 358 358 - - - 156 50%** Uses of Funds Salaries and Benefits 118 93 92 (1) - - 2 2% Contract Services 75 100 100 50 47 20 117% Supplies and Materials - - - - - - - 0% Facility and Equipment Purchases - - - - - - - 0% General Expenses 1 1 1 - - - - 0% Rents and Leases - - - - - - - 0% Allocated Charges 109 109 109 - - - 54 50% Debt Service - - - - - - - 0% Subtotal 303 303 302 (1) 50 47 76 57% Operating Transfers Out - - - - - - - 0% Capital Improvement Program - - - - - - - 0% Total Uses 303 303 302 (1) 50 47 76 57% Net To (From) Reserves 7 55 56 1 Beginning Reserves - - - Projected Ending Reserves 7 55 56 1 ** Excludes encumbrances and reappropriation CITY OF PALO ALTO FISCAL YEAR 2013 MIDYEAR BUDGET SUMMARY AIRPORT FUND (in thousands of dollars) BUDGET (as of 12-31-12) 10 of 23 2/26/2013 ATTACHMENT A, EXHIBIT 1 FY 2013 Category Amount Description GENERAL FUND Sales Taxes 819,000$ Increased sales tax revenue Property Taxes 350,000 Increased secured property tax revenue and supplemental Property Taxes 169,000 Change to property tax administrative fees Property Taxes (32,000) Reduced revenue from airplane taxes Property Taxes 119,000 Increased Motor Vehicle In‐lieu Fee revenue Other Taxes 848,000 Increased transit occupancy tax revenue Other Taxes 1,722,000 Increased Documentary Transfer Tax Use of Money (185,000) Reduced Interest Income UUT ‐ telephone 100,000 Increased revenue from telephone tax UUT (6,000) Decreased non‐telephone Utility's User tax Charges for Services (449,339) Remove Development Center revenues placeholder from budget Transfer fr Other Funds 401 Tech Fee transfer to GF for IT projects ‐ one time 3,455,062 Transfer to Other Funds 11,886$ SAP license increase portion not covered by Tech Fee ‐ one time Transfer to Other Funds (428,180) Golf Course Improvement COP refinancing Contract Services 449,105 Remove negative placeholder in the FY2013 budget for PAAS reduction General Expense 428,180 Golf Course Improvement COP refinancing ‐ capital lease 460,991 2,994,071$ Charges for Services $7,500 Increased revenue due to property easement revenues received but not budgeted Other Revenue 6,585 Increased sale of salvage revenue due to current year trends Other Revenue 7,402 Increased revenue from Treasury admin received but not budgeted Trasfer fm Other Funds 30,000 Revenues from parking funds to cover increased parking support expense Trasfer fm Other Funds 15,000 Transfer funds from CIP to cover temporary salaries to work on parking issues 66,487 Salary and Benefits ($1,000) Adjust Retiree Medical ARC Salary and Benefits 45,000 Temporary salaries for parking support General Expense 10,400 Transfer of Management training budgets to departments General Expense 63,722 Bankcard service charges Contract Services 46,081 Contract services for Purchasing Division‐ help with library project Contract Services 50,000 Contract services for Purchasing Division‐ quantitative data analysis 214,203 (147,716)$ Use Changes CITY OF PALO ALTO Midyear Detail Changes, Fiscal Year 2013 NON‐DEPARTMENTAL Source Changes Use Changes Net Changes To (From) Reserves ADMINISTRATIVE SERVICES Source Changes Net Changes To (From) Reserves 11 of 23 2/26/2013 ATTACHMENT A, EXHIBIT 1 FY 2013 Category Amount Description CITY OF PALO ALTO Midyear Detail Changes, Fiscal Year 2013 CITY ATTORNEY Salary and Benefits 1,000$ Adjust Retiree Medical ARC 1,000 Transfer of Management training budgets to departments 2,000 (2,000)$ CITY AUDITOR Salary and Benefits 18,163$ Addition of 0.50 FTE Performance Auditor Salary and Benefits (8,493) Elimination of Temp Salaries Budget General Expense 1,000 Transfer of Management training budgets to departments 10,670 (10,670)$ CITY CLERK Contract Services 26,000$ Increase in contract for minutes transciption Transfer to Other Funds 20,000 IT allocated cost for automated Form 700 system 46,000 (46,000)$ Salary and Benefits (1,000)$ Adjust Retiree Medical ARC General Expense 950 Transfer of Management training budgets to departments (50) 50$ CITY COUNCIL Salary and Benefits 1,000$ Adjust Retiree Medical ARC 1,000 (1,000)$ Use Changes Use Changes Net Changes To (From) Reserves Use Changes Net Changes To (From) Reserves Use Changes Net Changes To (From) Reserves CITY MANAGER Use Changes Net Changes To (From) Reserves Net Changes To (From) Reserves 12 of 23 2/26/2013 ATTACHMENT A, EXHIBIT 1 FY 2013 Category Amount Description CITY OF PALO ALTO Midyear Detail Changes, Fiscal Year 2013 From Other Agencies 7,920$ Contribution from Santa Clara County Arts Other Revenue 39,765 Donation from Friends of Palo Alto Children's Theater Source Changes 47,685 Salary and Benefits (2,000)$ Adjust Retiree Medical ARC Contract Services 38,000 Increased Enjoy! Catalog costs and add summer edition Contract Services 39,765 Contract personnel for Children's Theater Contract Services 7,920 Art course instruction and art services for exhibits, lectures, etc. Transfer to Other Funds 2,017 Uncollected portion of funds for turf mowers to be replaced midyear Transfer to Other Funds 30,000 Online ticketing for Children's Theater 115,702 (68,017)$ From Other Agencies 5,000$ EPA Grant Funding Charges for Services 231,080 Increase in Plan Check based on recent trends Source Changes 236,080 Salary and Benefits (26,000)$ Adjust Retiree Medical ARC Contract Services 5,000 Expenses for EPA Grant activity General Expense 15,000 Fire Chief relocation expenses General Expense (1,540) Transfer of management training funds to department budgets (7,540) 243,620$ Salary and Benefits 3,288 Reclass HR Assistant to HR Representative Salary and Benefits 9,131 Reclass Sr. HR Administrator to Manager, Employee Relations Salary and Benefits (1,000) Adjust Retiree Medical ARC 11,419 (11,419)$ Other Revenue 163$ Receipt of funds from California Pizza Kitchen donation Other Revenue 600 Receipt of funds from Parent's Club of PA & Menlo Park Other Revenue 907 Receipt of funds from Gordon Biersch donation Source Changes 1,670 Salary and Benefits 26,707$ Increase Senior Librarian from .50 FTE to 1.00 FTE Supplies and Materials 163 Expend program supplies and other purchases from California Pizza Kitchen donation Supplies and Materials 600 Expense of funds from Parent's Club of PA & Menlo Park Supplies and Materials 907 Expend program supplies and other purchases from Gordon Biersch donation 28,377 (26,707)$ Use Changes COMMUNITY SERVICES Use Changes Net Changes To (From) Reserves FIRE Use Changes Net Changes To (From) Reserves HUMAN RESOURCES Use Changes Net Changes To (From) Reserves LIBRARY Net Changes To (From) Reserves 13 of 23 2/26/2013 ATTACHMENT A, EXHIBIT 1 FY 2013 Category Amount Description CITY OF PALO ALTO Midyear Detail Changes, Fiscal Year 2013 Salary and Benefits 49,112$ Add 1.0 FTE Senior Planner Contract Services 75,000 Replenish funds for Inspection Services used for Council‐approved wireless study and hazmat study. 124,112 (124,112)$ Charges for Services 144,350 Increase in Animal Services Revenue as part of Placeholder Plan approved by Council Permits and Licenses 25,553 Increase in Animal Services Revenue as part of Placeholder Plan approved by Council Transfer fr Other Funds 174,485$ Transfer from Animal Services Donations Fund as part of Placeholder Plan approved by Council Source Changes 344,388 Salary and Benefits (18,000)$ Adjust Retiree Medical ARC Salary and Benefits (7,125) Animal Services Temp Salaries reduction as part of Placeholder Plan approved by Council Salary and Benefits (97,594) Elimination of 1.0 FTE Animal Services Supervisor and 1.0 FTE Animal Control Officer as part of Placeholder Plan approved by Council Salary and Benefits 49,200 Addition of 1.0 FTE Senior Administrator General Expense 1,700 Transfer of Management training budgets to departments (71,819) 416,207$ Reimbursements (40,000)$ Reduced revenue for surveying services (now contracted) and inspection services (Utilities uses their own staff). Permits 53,500 Increase revenue to reflect actuals for street open permits Source Changes 13,500 Salary and Benefits 2,000$ Adjust Retiree Medical ARC Supplies and Materials (8,542) Remove supplies for maintenance and custodial due to Mitchell Park delayed opening. Contract Services (52,159) Remove contract services for maintenance and custodial due to Mitchell Park delayed opening. Contract Services 60,000 Increase for engineering cost estimation work for projects for polling for possible bond measure. General Expense 30,640 Transfer of Management training budgets to departments 31,939 (18,439)$ Total General Fund Changes to BSR 3,197,868$ PLANNING & COMMUNITY Use Changes Net Changes To (From) Reserves POLICE Use Changes Net Changes To (From) Reserves PUBLIC WORKS Use Changes Net Changes To (From) Reserves 14 of 23 2/26/2013 ATTACHMENT A, EXHIBIT 1 FY 2013 Category Amount Description CITY OF PALO ALTO Midyear Detail Changes, Fiscal Year 2013 Other Revenue $ 84,295 Check received from McNellis Partners for reimbursement for work related to PE‐86070 Street Maintenance Transfer fr Other Funds 106,700 Reimbursement to General Fund from Univ. Ave. Parking District ‐ Lot J repairs Source Changes 190,995 CIP 84,295$ Adjust PE‐86070 Street Maintenance for check received CIP (100,000) Close AS‐10001 Sustainability Contingency CIP (15,000) Reduce PL‐12000 Transportation and Parking Improvements to cover transfer to the General Fund for temporary salaries to administer parking permit program CIP 240,000 Increase PE‐09006 Mitchell Park Library and Community Center New Construction for emergency sole source contract to provide construction services at Mitchell Park library CIP 106,700 Increase PF‐10002 for Lot J repairs Transfer to Other Funds 15,000 Transfer to General Fund for temporary salaries to administer parking permit program CIP (3,625,000) Reduce LB‐11000 Furniture and Technology for Library Projects to reflect donations actually received CIP 30,293 Portion of cost of Bobcat purchase not previously collected through allocations for CIP PO‐89003 General Expense (8,850) Transfer of management training funds to department/fund budgets Use Changes (3,272,562) 3,463,557$ Capital Fund Infrastructure ReserveNet Changes To (From) Reserves GENERAL FUND CIP 15 of 23 2/26/2013 ATTACHMENT A, EXHIBIT 1 FY 2013 Category Amount Description ENTERPRISE FUNDS UTILITIES ADMIN Salary and Benefits (3,280)$ Transfer of management training funds to department budgets Use Changes (3,280) Net Changes To (From) Reserves $ (3,280) Fund Balancing Entries $ (3,280) Change in Fund Balance Total Utilities Administration Fund $ (3,280) ELECTRIC FUND Revenue $ 35,590 Revenues from hydro resources in the ancillary services markets have been greater than projected. Offset by reduced carbon allowance revenue due to lower than anticipated auction prices. Transfer fm Other Funds 263,076 Return of funding from Technology CIPs TE‐10001 Utilities Customer Billing System Continuous Improvements, and TE‐ 11003 Recurring Credit Card Payment Source Changes 298,666 Salary and Benefits $ (32,000) Adjust Retiree Medical ARC Salary and Benefits (2,380) Transfer of management training funds to department budgets Commodity Purchases (6,860,730) To reflect the most current forecasted electric commodity costs. Major contributors to the budget reduction include a delay in the online date for one renewable energy project and savings in transmission costs over the original budget forecast. CIP (1,397,465) Reduction in EL‐02010 appropriation for capital projects due to SCADA sytem projected to come in under budget Transfer to Other Funds 132,185 Fund's portion of SAP adjustment Use Changes (8,160,390) Net Changes To (From) Reserves $ 8,459,056 Fund Balancing Entries $ 8,459,056 Change in Fund Balance Total Electric Fund $ 8,459,056 CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S 2013 PROPOSED BUDGET 16 of 23 2/26/2013 ATTACHMENT A, EXHIBIT 1 FY 2013 Category Amount Description CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S 2013 PROPOSED BUDGET FIBER OPTICS FUND Transfer fm Other Funds 837$ Return of funding from Technology CIPs TE‐10001 Utilities Customer Billing System Continuous Improvements, and TE‐ 11003 Recurring Credit Card Payment Source Changes 837 Salary and Benefits $ (1,100) Transfer management training funds to department budgets Transfer to Other Funds 3,694 Fund's portion of SAP adjustment Use Changes $ 2,594 Net Changes To (From) Reserves $ (1,757) Fund Balancing Entries $ (1,757) Change in Fund Balance Total Fiber Optics Fund $ (1,757) GAS FUND 7 Revenue $ (461,000) Reduction in gas retail sales due lower gas supply transportation cost. Transfer fm Other Funds 111,584 Return of funding from Technology CIPs TE‐10001 Utilities Customer Billing System Continuous Improvements, and TE‐ 11003 Recurring Credit Card Payment Source Changes (349,416) Salary and Benefits $ (15,000) Adjust Retiree Medical ARC Salary and Benefits (820) Transfer of management training funds to department budgets Salary and Benefits 16,919 Change WGW Supervisor to Utilities Supervisor per the Management Compensation Plan Commodity Purchases (762,000) Increases in PG&E's local gas transmission costs are delayed pending a California Public Utilities Commission (CPUC) review. CIP 315,000 New project GS‐13003 COBUG Upgrade CIP (717,915) Reduction in appropriation for capital projects Transfer to Other Funds 58,329 Uncollected portion of funds for purchase of asphalt patch truck Transfer to Other Funds 38,521 Fund's portion of SAP adjustment Use Changes (1,066,966) Net Changes To (From) Reserves $ 717,550 Fund Balancing Entries $ 717,550 Change in Fund Balance Total Gas Fund $ 717,550 17 of 23 2/26/2013 ATTACHMENT A, EXHIBIT 1 FY 2013 Category Amount Description CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S 2013 PROPOSED BUDGET Transfer fm Other Funds 34,258$ Return of funding from Technology CIPs TE‐10001 Utilities Customer Billing System Continuous Improvements, and TE‐ 11003 Recurring Credit Card Payment Source Changes 34,258 Salary and Benefits $ (5,000) Adjust Retiree Medical ARC Salary and Benefits (150) Transfer management training funds to department budgets Salary and Benefits 10,574 Change WGW Supervisor to Utilities Supervisor per the Management Compensation Plan CIP (540,000) Reduction in appropriation for capital projects Transfer to Other Funds 69,641 Uncollected portion of funds for purchase of two new VacCon trucks Transfer to Other Funds 350,000 For purchase of Hydro Excavator for which no replacement costs have previously been collected. Transfer to Other Funds 16,094 Fund's portion of SAP adjustment Use Changes (98,841) Net Changes To (From) Reserves $ 133,099 Fund Balancing Entries $ 133,099 Change in Fund Balance Total Wastewater Collection Fund $ 133,099 WASTEWATER COLLECTION FUND 18 of 23 2/26/2013 ATTACHMENT A, EXHIBIT 1 FY 2013 Category Amount Description CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S 2013 PROPOSED BUDGET WATER FUND 7 Other Revenue $ 6,965 Check received from McNellis Partners for reimbursement for work related to WS‐11004 Water Supply Improvements Transfer from Other Funds 64,053 Return of funding from Technology CIPs TE‐10001 Utilities Customer Billing System Continuous Improvements, and TE‐ 11003 Recurring Credit Card Payment Source Changes 71,018 Salary and Benefits $ (9,000)Adjust Retiree Medical ARC Salary and Benefits (770) Transfer of management training funds to department budgets Salary and Benefits 21,312 Change WGW Supervisor to Utilities Supervisor per the Management Compensation Plan CIP 6,965 Adjust WS‐11004 Water Supply Improvements for check received CIP (4,858,545) Reduction in appropriation for capital projects Transfer to Other Funds 37,730 Fund's portion of SAP adjustment Use Changes (4,802,308) Net Changes To (From) Reserves $ 4,873,326 Fund Balancing Entries $ 4,873,326 Change in Fund Balance Total Water Fund $ 4,873,326 AIRPORT FUND Salary and Benefits $ (1,000) Transfer management training funds to department budgets Use Changes $ (1,000) Net Changes To (From) Reserves $ (1,000) Fund Balancing Entries $ (1,000) Change in Fund Balance Total Airport Fund $ (1,000) 19 of 23 2/26/2013 ATTACHMENT A, EXHIBIT 1 FY 2013 Category Amount Description CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S 2013 PROPOSED BUDGET REFUSE FUND Transfer fr Other Funds $ 17,159 Close CIP TE‐11003, return funds to original sources Transfer fr Other Funds 45,860 Close CIP TE‐10001, return funds to original sources Source Changes $ 63,019 Salary and Benefits $ (2,000) Adjust Retiree Medical ARC Salary and Benefits (5,530) Transfer management training funds to department budgets Transfer to Other Funds 69,671 Underfunded portion for purchase of skip loader and all terrain vehicle for landfill transportation Transfer to Other Funds 29,814 Fund's portion of SAP adjustment Use Changes 91,955 Net Changes To (From) Reserves $ (28,936) Fund Balancing Entries $ (28,936) Change in Fund Balance Total Refuse Fund $ (28,936) STORM DRAINAGE FUND Transfer fr Other Funds $ 3,668 Close CIP TE‐11003, return funds to original sources Transfer fr Other Funds 9,805 Close CIP TE‐10001, return funds to original sources Source Changes 13,473 Salary and Benefits $ (1,000) Adjust Retiree Medical ARC Salary and Benefits (1,870) Transfer management training funds to department budgets Transfer to Other Funds 5,805 Fund's portion of SAP adjustment Use Changes 2,935 Net Changes To (From) Reserves $ 10,538 Fund Balancing Entries $ 10,538 Change in Fund Balance Total Storm Drainage Fund $ 10,538 WASTEWATER TREATMENT FUND Salary and Benefits $ (3,000) Adjust Retiree Medical ARC Salary and Benefits (13,220) Transfer management training funds to department budgets Transfer to Other Funds 14,924 Fund's portion of SAP adjustment Use Changes (1,296) Net Changes To (From) Reserves 1,296 Fund Balancing Entries 1,296 Change in Fund Balance Total Wastewater Treatment Fund 1,296 20 of 23 2/26/2013 ATTACHMENT A, EXHIBIT 1 FY 2013 Category Description Transfer to Other Funds 106,700$ Reimbursing General Fund for 1/2 Lot J Structural Repairs Use Changes 106,700 (106,700)$ Transfer to Other Funds 30,000$ Transfer funds to cover the cost of temporary salaries for parking support Use Changes 30,000 (30,000)$ Transfer fm Other Funds (428,180)$ Transfer from General Fund Source Changes (428,180) General Expense (428,180)$ Golf Course Improvement COP retired principal and interest Use Changes (428,180) ‐$ Transfer from Other Funds 579,951$ Revenues from other funds for purchase of underfunded vehicles 579,951 Salary and Benefits (4,000)$ Adjust Retiree Medical ARC Salary and Benefits (2,530) Transfer management traininig funds to department budgets Contract Services 35,000 To cover a more comprehensive Fleet organizational study than originally budgeted CIP 1,847,460 VR‐13000 vehicle purchases Transfer to Other Funds 3,731 Fund's portion of SAP adjustment Use Changes 1,879,661 (1,299,710)$ SPECIAL REVENUE FUNDS CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S 2013 PROPOSED BUDGET Amount UNIV. AVE. PARKING DISTRICT FUND Net Changes To (From) Reserves RESIDENTIAL PARKING PERMIT FUND Net Changes To (From) Reserves DEBT SERVICE FUNDS GOLF COURSE DEBT SERVICE FUND Net Changes To (From) Reserves VEHICLE REPLACEMENT FUND Source Changes Net Changes To (From) Reserves 21 of 23 2/26/2013 ATTACHMENT A, EXHIBIT 1 FY 2013 Category Description CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S 2013 PROPOSED BUDGET Amount Transfer fr Other Funds 20,000$ Revenue for Form 700 automation Transfer fr Other Funds 30,000 Revenue for online Children's Theater ticketing Transfer fr Other Funds 275,729 Revenue from other funds for SAP increased licensing expense Source Changes 325,729 Salary and Benefits (3,000)$ Adjust Retiree Medical ARC Salary and Benefits (2,550) Transfer management training funds to department budgets Contract Services 333,481 Replenish cost of SAP adjustment Contract Services 79,602 SAP maintenance for additional licenses Contract Services 20,000 Automating Form 700 for FPPC filings Contract Services 75,000 Additional features for Civica, including intranet, internet, and Development Services Contract Services 30,000 Online ticketing for Children's Theater Transfer to Other Funds 400,000 Close CIP TE‐10001 (Utility billing), return funds to sources Transfer to Other Funds 150,000 Close CIP TE‐11003 (Recurring credit card payment), return funds to sources Use Changes 1,082,533 (756,804)$ Salary and Benefits (100)$ Transfer management training funds to department budgets Transfer to Other Funds 298 Fund's portion of SAP adjustment Use Changes 198 198$ Charges to Other Funds (114,000)$ Charges to other funds Source Changes (114,000) Salary and Benefits (114,000)$ Retiree medical ARC Use Changes (114,000) ‐$ Grants 105,397$ Annual COPS Grant allocation Source Changes 105,397$ Equipment 105,397$ Expense for grant funded equipment Use Changes 105,397 ‐$ Net Changes To (From) Reserves INFORMATION TECHNOLOGY FUND PRINTING AND MAILING Net Changes To (From) Reserves RETIREE MEDICAL Net Changes To (From) Reserves LAW ENFORCEMENT SERVICES FUND Net Changes To (From) Reserves 22 of 23 2/26/2013 ATTACHMENT A, EXHIBIT 1 FY 2013 Category Description CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S 2013 PROPOSED BUDGET Amount Donation 34,486$ Anonymous donation for Volunteer Coordinator Donation 47,000 Donation from Santa Clara County Donation 92,999 Other general donations for Animal Services Source Changes 174,485$ Transfer to Other Funds 174,485$ Transfer to General Fund for Animal Services Placeholder Plan Use Changes 174,485 ‐$ PUBLIC SERVICES DONATION FUND Net Changes To (From) Reserves 23 of 23 2/26/2013 Attachment A, Exhibit 2 Project Funding Title Number Revenue Expense Source Comments ADDITIONAL APPROPRIATIONS Street Maintenance PE-86070 $ 84,295 $ 84,295 Other revenue The City received a check in the amount of $91,260 from McNellis Partners for the median (Alma Village) for reimbursement for work that was performed by a City contractor per agreement with the private developer. The contract was funded from PE-86070 and WS-11004, the work has been completed and reimbursment was received by the City. This adjustment will reimburse those projects. Lot J Structure Repair PF-10002 $ 106,700 $ 106,700 Univ. Ave. Parking Permit Fund Reimbursement from the University Ave. Parking Permit Fund for Lot J repairs. Sidewalk Repairs PO-89003 $ 30,293 Infrastructure Reserve Portion of cost of Bobcat purchase not previously collected through allocations for CIP PO-89003 Mitchell Park Library and Community Center New Construction PE-09006 $ 240,000 Infrastructure Reserve Funding is needed for an emergency sole source contract to provide construction services at Mitchell Park library Total $ 190,995 $ 461,288 REDUCTION IN APPROPRIATIONS/TO CLOSE PROJECTS Transportation and Parking Improvements PL-12000 $ (15,000) Infrastructure Reserve Reduction to cover transfer to the General Fund for temporary salaries to administer parking permit program Furniture and Technology for Library Projects LB-11000 $ (3,625,000) Infrastructure Reserve From FY 2011 to FY 2013, $6,000,000 had been approved for this project to be funded by donations. However, $2,375,000 has been received for this project which is being reduced to reflect the amount actually received. Sustainability Contingency AS-10001 $ (100,000) Infrastructure Reserve To close project due to inactivity Total $ (3,740,000) TOTAL GENERAL FUND CIP MID-YEAR ADJUSTMENTS $ 190,995 $ (3,278,712) REDUCTION IN APPROPRIATIONS/TO CLOSE PROJECTS SCADA System Upgrade EL-02010 $ (140,000) Electric Fund Distribution RSR It is projected that this project will be completed by the end of FY 2013. The cost for upgrading of the SCADA system came in below estimated amounts and these funds are not required. The remaining funds are adequate to complete the project with a contingency for unforeseen work. Electric Utility GIS EL-02011 $ (50,000) Electric Fund Distribution RSR Original project scope is essentially completed. Funds are still required for the ongoing maintenance contract. If any additional scope for this project is identified it will be requested at a later budget process. Middlefield / Colorado 4/12 kV Conversion EL-09002 $ (40,078) Electric Fund Distribution RSR This project is completed and no additional work is planned. Close project. Reconductor 60kV OH Transmission System EL-11015 $ (400,000) Electric Fund Distribution RSR The scope of work for this project has been reduced because of the uncertainty related to the construction of the Performing Arts Center (and related buildings) and the impact this construction will have on the existing transmission line in the area. Funding to reconductor the Quarry-Hopkins transmission line will be requested at a later date when development plans for the area are more concrete. FY 2013 CIP Mid-Year Adjustments CAPITAL PROJECT FUND ELECTRIC FUND 1 of 6 2/26/2013 Attachment A, Exhibit 2 Project Funding Title Number Revenue Expense Source Comments FY 2013 CIP Mid-Year Adjustments Electric Vehicle Charging Infrastructure EL-11016 $ (117,387) Electric Fund Distribution RSR This project is completed and no additional work is planned. Close project. 2 of 6 2/26/2013 Attachment A, Exhibit 2 Project Funding Title Number Revenue Expense Source Comments FY 2013 CIP Mid-Year Adjustments Hopkins Substation Rebuild EL-12003 $ (250,000) Electric Fund Distribution RSR Staff is reevaluating the need and timing of this upgrade. The work at Colorado and Hopkins Substations are somewhat related due their proximity to one another and impact to the overall area electric service master plan. Preliminary load projections indicate that this work will not be required before FY 2015. Funding for this project or any iteration of such shall be resubmitted for approval. Colorado 20/21 - Transformer Replacements EL-13005 $ (100,000) Electric Fund Distribution RSR Staff is reevaluating the need and timing of this upgrade. The work at Colorado and Hopkins Substations are somewhat related due their proximity to one another and impact to the overall area electric service master plan. Preliminary load projections indicate that this work will not be required before FY 2015. Funding for this project or any iteration of such shall be resubmitted for approval. Communications System Improvements EL-89031 $ (300,000) Electric Fund Distribution RSR This continuous improvement project for the communication system has been placed on hold due to higher priority projects and limited staffing. Total $ - $ (1,397,465) TOTAL ELECTRIC FUND CIP MID-YEAR ADJUSTMENTS $ - $ (1,397,465) ADDITIONAL APPROPRIATIONS Cooperatively-Owned Backup Generators (COBUG Upgrade)- (New Project) (Exhibit B-1) GS-13003 $ 315,000 Gas Fund Distribution RSR This project is to add emissions equipment to the Cooperatively-owned Backup Generators (COBUGs), four City-owned generators. The generators are required to comply with new Federal Environmental Protection Agency (EPA) emissions rules for internal combustion engines by October 2013. Total $ - $ 315,000 REDUCTION IN APPROPRIATIONS/TO CLOSE PROJECTS GMR - Project 18 GS-08011 $ (250,000) Gas Fund Distribution RSR The construction phase of this project is completed and a portion of the funds could be returned to the reserves. The remaining funds is needed to close out the project, including as-builting, surveying, and mapping. GMR - Project 22 GS-12001 $ (467,915) Gas Fund Distribution RSR This project has been deferred out to FY 2015. Gas main replacement projects 19B/20/21 will begin in the second half of FY 2013 and will take approximately three years to complete. Total $ - $ (717,915) TOTAL GAS FUND CIP MID-YEAR ADJUSTMENTS $ - $ (402,915) GAS FUND 3 of 6 2/26/2013 Attachment A, Exhibit 2 Project Funding Title Number Revenue Expense Source Comments FY 2013 CIP Mid-Year Adjustments ADDITIONAL APPROPRIATIONS Water Supply System Improvements WS-11004 $ 6,965 $ 6,965 Other revenue The City received a check in the amount of $91,260 from McNellis Partners for the median (Alma Village) for reimbursement for work that was performed by a City contractor per agreement with the private developer. The contract was funded from PE-86070 and WS-11004, the work has been completed and reimbursment was received by the City. This adjustment will reimburse those projects. Total $ 6,965 $ 6,965 REDUCTION IN APPROPRIATIONS/TO CLOSE PROJECTS Water Recycling Facilities WS-07001 $ (200,000) Water Fund Distribution RSR The recycled water project has experienced significant delays and remains in the environmental review process. There are sufficient funds to complete the environmental documents. Until the environmental documents are complete and the project financial plan has been approved, surplus funds are not required and are being returned. Emergency Water Supply Project WS-08002 $ (1,000,000) Utility Revenue Bonds El Camino reservoir construction is 65% complete. Mayfield Pump Station construction 75% complete. Wells rehabilitation construction 90% complete. There is sufficient budget encumbered and available to complete the remaining projects. WMR - Project 22 WS-08017 $ (141,639) Water Fund Distribution RSR This project is completed and no additional work is planned. Close project. WMR-Project 24 WS-10001 $ (200,000) Water Fund Distribution RSR Construction contract has been awarded including contingency for any unforeseen work outside of scope. Return remaining available budget. WMR-Project 25 WS-11000 $ (2,736,906) Water Fund Distribution RSR This project has been deferred out to FY 2014. Water main replacement projects 23 and 24 are scheduled to be completed in FY 2014. The BID for Project 25 is scheduled to go out in the beginning of FY 2015. WMR-Project 26 WS-12001 $ (305,000) Water Fund Distribution RSR The design phase of this project is deferred out to FY 2014 in conjunction with the delay of project 25. Vacuum Excavation Equipment WS-11001 $ (275,000) Water Fund Distribution RSR To close project; equipment will be purchased from VR-13000 Total $ - $ (4,858,545) TOTAL WATER FUND CIP MID-YEAR ADJUSTMENTS $ 6,965 $ (4,851,580) REDUCTION IN APPROPRIATIONS/TO CLOSE PROJECTS WC Reh/Aug. Prj 20 WC-07004 $ (150,000) Wastewater Collection Fund RSR The construction phase of this project is completed and a portion of the funds could be returned to the reserves. The remaining funds is needed to close out the project, including as-builting, surveying, and mapping. WC Reh/Aug. Prj 21 WC-08012 $ (80,000) Wastewater Collection Fund RSR The construction phase of this project is completed and a portion of the funds could be returned to the reserves. The remaining funds is needed to close out the project, including as-builting, surveying, and mapping. WC Reh/Aug. Prj 26 WC-13001 $ (310,000) Wastewater Collection Fund RSR The design phase of this project is deferred out to FY 2014 due to construction of projects 24 & 25 in FY 2013. WATER FUND WASTEWATER COLLECTION FUND 4 of 6 2/26/2013 Attachment A, Exhibit 2 Project Funding Title Number Revenue Expense Source Comments FY 2013 CIP Mid-Year Adjustments TOTAL WASTEWATER COLLECTION FUND CIP MID-YEAR ADJUSTMENTS -$ (540,000)$ 5 of 6 2/26/2013 Attachment A, Exhibit 2 Project Funding Title Number Revenue Expense Source Comments FY 2013 CIP Mid-Year Adjustments ADDITIONAL APPROPRIATIONS Storm Drain System Replacement and Rehabilitation SD-06101 $ 8,474 $ 8,474 Revenue from Other Agencies Reimbursement from ABAG for trash capture device installation TOTAL STORM DRAINAGE FUND CIP MID- YEAR ADJUSTMENTS 8,474$ 8,474$ ADDITIONAL APPROPRIATIONS Scheduled Vehicle and Equipment Replacements VR-13000 $ 1,847,460 Vehicle Replacement Fund Due to the Fleet Audit, the City has deferred the annual equipment replacement CIP for 3 years with FY 2013 being the first year we began funding the program. There are numerous pieces of equipment that are in high need of replacement based on their age, condition, downtime and impacts to the departments. This midyear request has been reviewed and approved by the Fleet Review Committee. The purchases include two flush trucks that operate 24/7 to maintain the sewer system and respond to overflows; an asphalt patch truck; a vacuum digging truck to provide non invasive excavation around gas, water and sewer lines; two lawn mowers to address the on-going mowing requirements at city facilities and the school play fields; a bobcat used for sidewalk maintenance; a skip loader and a small 4-wheel transport vehicle that can carry 2 staff plus toolsto support post- closure activities at the landfill. TOTAL VEHICLE REPLACEMENT FUND CIP MID-YEAR ADJUSTMENTS 1,847,460$ REDUCTION IN APPROPRIATIONS/TO CLOSE PROJECTS Utilities Customer Billing System Continuous Improvements TE-10001 (400,000)$ Various Enterprise Funds The projected costs to implement the legal and legislative requirements in the Utilities billing system were less than expected as a result of either satisfying these requirements internally; using an efficient yet scaled down approach; or legislation was postponed for further clarification and development. Similarly, enhancements and functionality related work was either satisfied using our internal resources; planned work was delayed as part of a change in strategic direction; or as a result of a change in business prioritization. The remaining funds are adequate to satisfy unforeseen work. Recurring Credit Card Payment TE-11003 (150,000)$ Various Enterprise Funds This project has been placed on hold due to insufficient SAP resources and competing priorities. Also, the SAP PMO team will be requesting a city-wide payment strategy that captures many of the City’s payment requirements TOTAL TECHNOLOGY FUND CIP MID-YEAR ADJUSTMENTS (550,000)$ VEHICLE REPLACEMENT FUND TECHNOLOGY FUND STORM DRAINAGE FUND 6 of 6 2/26/2013 - 1 - City of Palo Alto Fiscal Year 2013 Adopted Budget GS-13003Cooperatively-owned Backup Generators (COBUGs)NEW COOPERATIVELY-OWNED BACKUP GENERATORS (COBUGS) (GS-13003) CIP FACTS: • Project Type: Nonrecurring • Project Stage: Pre-Design • Est. Timeline: Spring 2013-Winter 2014 • Managing Department: Utilities IMPACT ANALYSIS: • Environmental: This project is categorically exempt from CEQA under Section 15301 • Design Elements: This project may be subject to staff-level ARB review. • Operating: This project will enable continued operation of the COBUG generating units Description: This project is to add emissions equipment to the Cooperatively-owned Backup Generators (COBUGs), four City-owned generators located at the Municipal Services Center. Justification: The COBUG generators are normally only run for testing purposes, but they have been a cost effective way of fulfilling the Local Resource Adequacy requirements imposed by the California Independent System Operator (CAISO), which require the electric utility to provide a certain amount of generating capacity in transmission- constrained areas. Supplemental Information: The generators are run by internal combustion engines fueled by natural gas, and are required to comply with new Federal Environmental Protection Agency (EPA) emissions rules for internal combustion engines by October 2013. Relationship to Comprehensive Plan Primary Connection • Element: Natural Environment • Section: Air Quality • Goal: N-5 • Policy: N-26 Expenditures FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Total Salaries and Benefits Design Costs Construction Costs $315,000 $315,000 Other Total Budget Request $315,000 $315,000 Revenues FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Total Gas Fund $315,000 $315,000 Total Sources of Funds $315,000 $315,000 ATTACHMENT A, EXHIBIT 2-A Page 1 of 1 ATTACHMENT A, EXHIBIT 3 Amendments to FY 2013 Table of Organization FY 2009 Actuals FY 2010 Actuals FY 2011 Actuals FY 2012 Adopted Budget FY 2013 Adopted Budget FY 2013 Midyear Changes FY 2013 Adjusted GENERAL FUND Administrative Services Accountant 3.00 2.00 2.00 2.00 2.00 2.00 Acct Spec 11.00 8.00 7.00 7.00 7.00 7.00 Acct Spec‐Lead 5.00 5.00 5.00 5.00 5.00 5.00 Admin Assistant 0.93 0.93 0.93 0.93 1.00 1.00 Administrative Associate III 0.96 0.96 0.00 1.00 1.00 1.00 Asst Director Adm Svcs* 0.60 0.60 0.60 1.50 1.70 0.10 1.80 Budget Officer 0.00 0.00 0.00 1.00 0.00 0.00 Business Analyst 0.10 0.10 0.00 0.00 0.00 0.00 Buyer 1.95 1.95 1.95 1.95 1.95 1.95 Chief Budget Officer 1.00 1.00 1.00 1.00 0.00 0.00 Contracts Administrator 2.00 2.00 1.40 1.40 1.40 1.40 Deputy Dir Adm Svcs 0.80 0.80 0.80 0.00 0.00 0.00 Dir Adm Svcs/Chief Financial Officer* 0.50 0.50 0.50 0.50 0.50 0.05 0.55 Director, Office of Management and Budget 0.00 0.00 0.00 0.00 1.00 1.00 Graphic Designer 1.00 1.00 1.00 0.00 0.00 0.00 Mgr Accounting 1.00 1.00 1.00 1.00 1.00 1.00 Mgr Pur & Cntr Admin 1.00 1.00 1.00 1.00 1.00 1.00 Mgr Real Property 1.00 1.00 1.00 1.00 1.00 1.00 Payroll Analyst 2.00 2.00 2.00 2.00 2.00 2.00 Principal Financial Analyst 0.00 0.00 0.00 0.00 1.00 1.00 Sr. Accountant 4.00 3.00 3.00 3.00 3.00 3.00 Sr. Business Analyst 0.20 0.20 0.00 0.00 0.00 0.00 Sr. Financial Analyst 7.91 6.91 5.81 4.91 6.10 6.10 Storekeeper 1.00 0.00 0.00 0.00 0.00 0.00 Storekeeper‐L 1.00 1.00 1.00 1.00 1.00 1.00 Warehouse Supv 1.00 1.00 0.50 0.50 0.50 0.50 Total Administrative Services 48.95 41.95 37.49 37.69 39.15 0.15 39.30 City Auditor Admin Assistant 1.00 1.00 1.00 1.00 1.00 1.00 City Auditor 1.00 1.00 1.00 1.00 1.00 1.00 Performance Auditor 0.00 0.00 0.00 0.00 0.00 0.50 0.50 Sr. Performance Auditor 2.00 2.00 2.00 2.00 2.00 2.00 Total City Auditor 4.00 4.00 4.00 4.00 4.00 0.50 4.50 Community Services Admin Assistant 1.00 1.00 1.00 1.00 1.00 1.00 Administrative Associate I 2.50 2.00 0.00 0.00 0.00 0.00 Administrative Associate III 0.00 0.75 0.75 0.75 0.75 0.75 Arts & Culture Div Mgr 1.00 1.00 1.00 1.00 0.00 0.00 Assistant Director CSD 0.00 0.00 0.00 0.00 1.00 1.00 Bldg Serviceperson 4.00 4.00 2.00 2.00 2.00 2.00 Bldg Serviceperson‐L 2.00 2.00 2.00 2.00 2.00 2.00 Community Services Manager* 0.00 0.00 0.00 0.00 0.00 6.00 6.00 Community Services Senior Program Manager* 1.00 1.00 1.00 1.00 1.00 2.00 3.00 Page 1 of 7 ATTACHMENT A, EXHIBIT 3 Amendments to FY 2013 Table of Organization FY 2009 Actuals FY 2010 Actuals FY 2011 Actuals FY 2012 Adopted Budget FY 2013 Adopted Budget FY 2013 Midyear Changes FY 2013 Adjusted Community Services Superintendent* 1.00 1.00 1.00 1.00 0.00 2.00 2.00 Coord Child Care 1.00 1.00 0.00 0.00 0.00 0.00 Coord Rec Prog 5.00 5.00 4.50 4.00 4.00 4.00 Cub Ctr & Hum Svc Div Mgr 1.00 1.00 0.00 0.00 0.00 0.00 Dir Comm Svcs 1.00 1.00 1.00 1.00 1.00 1.00 Division Manager, Recreations & Golf 1.00 1.00 1.00 1.00 1.00 1.00 Golf Cor Equip Mech 1.00 1.00 0.00 0.00 0.00 0.00 Golf Cor Mt Person 5.00 4.00 0.00 0.00 0.00 0.00 Inspector, Field Svc 2.00 2.00 2.00 2.00 2.00 2.00 Junior Museum & Zoo Educator 0.00 2.25 2.25 2.25 2.25 2.25 Management Assistant 1.00 1.00 1.00 1.00 1.00 1.00 Mgr Arts* 2.00 2.00 2.00 2.00 2.00 (2.00) 0.00 Open Spc & Parks Div Mgr 1.00 1.00 1.00 1.00 1.00 1.00 Park Maint ‐ Lead 1.00 1.00 1.00 1.00 1.00 1.00 Park Maint Person 11.00 11.00 6.00 6.00 6.00 6.00 Park Ranger 5.00 5.00 5.00 5.00 5.00 5.00 Parks/Golf Crew‐Lead 3.00 3.00 2.00 2.00 2.00 2.00 Prod Arts/Sci Prog 12.50 13.00 12.00 12.00 11.75 11.75 Program Assistant I 12.00 7.75 7.50 7.50 7.50 7.50 Program Assistant II 3.00 3.00 3.00 3.00 3.00 3.00 Senior Management Analyst 1.00 1.00 1.00 1.00 1.00 1.00 Sprinkler Sys Repr 5.00 5.00 4.00 4.00 4.00 4.00 Sr Ranger 1.00 0.00 0.00 0.00 0.00 0.00 Supt Parks* 1.00 1.00 1.00 1.00 2.00 (2.00) 0.00 Supv Open Space* 1.00 2.00 2.00 2.00 2.00 (2.00) 0.00 Supv Parks* 1.00 1.00 1.00 1.00 1.00 (1.00) 0.00 Supv Rec Prog* 4.00 4.00 4.00 4.00 4.00 (3.00) 1.00 Theater Specialist 1.00 1.00 1.00 1.00 1.00 1.00 Volunteer Coord 0.50 0.50 0.50 0.50 0.50 0.50 Total Community Services 96.50 94.25 74.50 74.00 73.75 0.00 73.75 Human Resources Sr. Administrator Human Resources 5.00 5.00 5.00 5.00 5.00 (1.00) 4.00 Admin Assistant 1.00 1.00 1.00 1.00 1.00 1.00 Assistant Director Human Resources 1.00 1.00 1.00 1.00 1.00 1.00 Dir Human Resources 1.00 1.00 1.00 1.00 1.00 1.00 Human Resources Rep 2.00 2.00 2.00 2.00 2.00 1.00 3.00 Human Rsrce Asst Cnf 4.00 5.00 5.00 5.00 5.00 (1.00) 4.00 Management Analyst 0.00 0.00 0.00 0.00 0.00 0.00 Mgr Employee Relations 1.00 0.00 0.00 0.00 0.00 1.00 1.00 Senior Management Analyst 1.00 1.00 1.00 1.00 1.00 1.00 Total Human Resources 16.00 16.00 16.00 16.00 16.00 0.00 16.00 Library Admin Assistant 1.00 1.00 1.00 1.00 1.00 1.00 Assistant Director, Library Services 1.00 1.00 1.00 1.00 1.00 1.00 Business Analyst 0.00 1.00 1.00 1.00 1.00 1.00 Coord Library Prog 3.00 1.00 1.00 1.00 1.00 1.00 Dir Libraries 1.00 1.00 1.00 1.00 1.00 1.00 Division Head, Library Services 1.00 1.00 1.00 1.00 1.00 1.00 Librarian 5.00 5.00 5.00 5.00 5.00 5.00 Library Associate 4.00 4.00 4.00 4.00 5.00 5.00 Page 2 of 7 ATTACHMENT A, EXHIBIT 3 Amendments to FY 2013 Table of Organization FY 2009 Actuals FY 2010 Actuals FY 2011 Actuals FY 2012 Adopted Budget FY 2013 Adopted Budget FY 2013 Midyear Changes FY 2013 Adjusted Library Asst 5.50 5.50 5.50 5.50 5.50 5.50 Library Services manager 4.00 4.00 4.00 4.00 4.00 4.00 Library Specialist 8.00 8.00 8.00 8.00 7.00 7.00 Management Assistant 1.00 1.00 1.00 1.00 1.00 1.00 Sr Librarian 9.25 8.75 7.75 7.75 7.75 0.50 8.25 Total Library 43.75 42.25 41.25 41.25 41.25 0.50 41.75 Planning and Community Environment Adm Pln & Comm Envrn 1.00 1.00 1.00 1.00 1.00 1.00 Admin Assistant 1.00 1.00 1.00 1.00 1.00 1.00 Administrative Associate I 2.00 2.00 1.00 1.50 1.00 1.00 Administrative Associate II 4.80 3.80 3.80 3.80 3.80 3.80 Administrative Associate III 1.00 1.00 1.00 1.00 1.00 1.00 Arborist 1.00 0.00 0.00 0.00 0.00 0.00 Assistant Director Planning & Comm Env 1.00 0.00 0.00 1.00 1.00 1.00 Assoc Engineer 1.00 1.00 1.00 1.00 1.00 1.00 Asst Build Official 1.00 1.00 1.00 1.00 1.00 1.00 Asst To City Mgr 0.00 0.00 0.05 0.00 0.00 0.00 Bldg Inspector 4.00 4.00 4.00 4.00 4.00 4.00 Bldg Inspector Spec 3.00 2.00 1.00 1.00 1.00 1.00 Bldg/Plg Technician 3.00 3.00 2.00 2.00 2.00 2.00 Chief Bld Official 1.00 1.00 1.00 1.00 1.00 1.00 Chief Plg Official 1.00 1.00 1.00 0.00 1.00 1.00 Chief Transp Off 0.00 0.00 1.00 1.00 1.00 1.00 Code Enforcement Off 2.00 2.00 2.00 2.00 2.00 2.00 Coor Trans Sys Mgmt 0.50 0.50 0.50 0.50 0.50 0.50 Deputy City Mgr Spec Proj 0.00 0.50 0.50 0.50 0.50 0.50 Development Center Manager 0.00 0.00 0.00 0.00 1.00 1.00 Development Project Coordinator III 0.00 0.00 0.00 0.00 3.00 3.00 Development Services Director 0.00 0.00 0.00 0.00 1.00 1.00 Dir Plan/Comm Envir 1.00 1.00 1.00 1.00 1.00 1.00 Engineer 1.00 1.00 1.00 1.00 1.00 1.00 Engr Tech II 1.00 1.00 1.00 1.00 1.00 1.00 Engr Tech III 0.00 0.00 0.00 0.00 0.00 0.00 Management Anslyst* 0.00 0.00 0.00 0.00 0.00 0.50 0.50 Mgr Economic Dev 1.00 1.00 1.00 0.00 0.00 0.00 Mgr Planning 2.00 2.00 2.00 2.00 1.00 1.00 Permit Specialist 1.00 0.00 0.00 0.00 0.00 0.00 Planner 6.00 6.05 5.75 5.75 3.75 3.75 Planning Arborist 0.00 1.00 1.00 0.00 0.00 0.00 Plans Check Engr 3.00 2.00 2.00 2.00 2.00 2.00 Plans Examiner 0.00 0.00 0.00 0.00 1.00 1.00 Project Engineer 1.00 1.00 1.00 1.00 1.00 1.00 Sr Planner 6.00 6.00 5.00 5.00 6.00 1.00 7.00 Supv Bldg Inspection 1.00 1.00 1.00 1.00 1.00 1.00 Transportation Manager 1.00 1.00 0.00 0.00 0.00 0.00 Total Planning and Community Environment 53.30 48.85 44.60 43.05 47.55 1.50 49.05 Public Safety 40‐Hr Training Captain 1.00 1.00 1.00 1.00 1.00 1.00 Admin Assistant 2.00 2.00 1.00 1.00 1.00 1.00 Administrative Associate II 7.00 7.00 7.00 7.00 7.00 7.00 Page 3 of 7 ATTACHMENT A, EXHIBIT 3 Amendments to FY 2013 Table of Organization FY 2009 Actuals FY 2010 Actuals FY 2011 Actuals FY 2012 Adopted Budget FY 2013 Adopted Budget FY 2013 Midyear Changes FY 2013 Adjusted Animal Control Off 4.50 4.50 4.50 4.50 4.50 (1.00) 3.50 Animal Services Spec 1.00 1.00 1.00 0.00 0.00 0.00 Animal Services Spec II 1.00 1.00 1.00 2.00 2.00 2.00 Assistant Police Chief ‐ Adv 1.00 1.00 1.00 1.00 1.00 1.00 Battalion Chief 56‐Hour Workweek 3.00 3.00 3.00 3.00 3.00 3.00 Business Analyst 1.00 1.00 1.00 1.00 1.00 1.00 Code Enforcement Off 1.50 1.50 1.00 1.00 1.00 1.00 Comm Tech 1.00 1.00 1.00 1.00 1.00 1.00 Community Serv Offcr 9.00 9.00 8.50 8.50 8.50 8.50 Coord Pol Tech Svcs 1.00 1.00 1.00 1.00 1.00 1.00 Court Liaison Officer 1.00 1.00 1.00 1.00 1.00 1.00 Crime Analyst 1.00 2.00 1.00 1.00 1.00 1.00 Deputy Chief/Fire Marshall 0.84 0.84 0.84 0.84 0.84 0.84 Deputy Fire Chief 2.00 2.00 2.00 2.00 2.00 2.00 Emergency Medical Svc Chief 1.00 0.00 0.00 0.00 0.00 0.00 Emergency Services Director 0.00 0.00 0.00 1.00 1.00 1.00 EMS Data Specialist 0.00 0.00 0.00 0.00 1.00 1.00 EMS Manager 1.00 1.00 1.00 1.00 1.00 1.00 Fire Apparatus Op 30.00 30.00 30.00 30.00 30.00 30.00 Fire Captain 27.00 27.00 27.00 27.00 22.00 22.00 Fire Chief 1.00 1.00 1.00 1.00 1.00 1.00 Fire Fighter 45.00 45.00 45.00 45.00 41.00 41.00 Fire Fighter Emt 3.00 0.00 0.00 0.00 0.00 0.00 Fire Inspector 3.00 3.00 3.00 3.00 4.00 4.00 GIS Specialist 0.00 0.00 0.00 0.00 1.00 1.00 Haz Mat Inspector 1.90 1.90 1.90 1.90 1.90 1.90 Haz Mat Spec 0.95 0.95 0.00 0.00 0.00 0.00 OES Coordinator 1.00 1.00 1.00 1.00 1.00 1.00 Police Agent 19.00 19.00 19.00 19.00 19.00 19.00 Police Captain‐Adv 2.00 2.00 2.00 2.00 2.00 2.00 Police Chief‐Adv 1.00 1.00 1.00 1.00 1.00 1.00 Police Lieut‐Adv 5.00 5.00 5.00 5.00 5.00 5.00 Police Officer 51.00 50.00 49.00 49.00 49.00 49.00 Police Records Specialist ‐ Lead 1.00 1.00 1.00 1.00 1.00 1.00 Police Records Specialist II 9.00 7.00 6.00 6.00 6.00 6.00 Police Sergeant 14.00 14.00 14.00 14.00 14.00 14.00 Program Assistant 0.00 0.00 0.00 0.00 1.00 1.00 Program Assistant I 1.00 0.00 0.00 0.00 0.00 0.00 Program Assistant II 1.00 1.00 1.00 1.00 1.00 1.00 Program Coordinator 0.00 1.00 0.00 0.00 0.00 0.00 Property Evid Tech 2.00 2.00 2.00 2.00 2.00 2.00 Public Safety Disp 2.00 2.00 2.00 2.00 2.00 2.00 Public Safety Dispatcher ‐ Lead 5.00 5.00 5.00 5.00 5.00 5.00 Public Safety Dispatcher II 14.00 14.00 14.00 14.00 14.00 14.00 Senior Management Analyst 1.00 1.00 1.00 1.00 1.00 1.00 2.00 Supt Animal Services 1.00 1.00 1.00 1.00 1.00 1.00 Supv Animal Svcs 1.00 1.00 1.00 1.00 1.00 (1.00) 0.00 Supv Police Service 3.00 3.00 3.00 3.00 3.00 3.00 Veterinarian 1.00 1.00 1.00 1.00 1.00 1.00 Veterinarian Tech 2.00 2.00 2.00 2.00 2.00 2.00 Volunteer Coord 1.00 0.50 0.50 0.50 0.50 0.50 Total Public Safety 290.69 284.19 277.24 278.24 273.24 (1.00) 272.24 Page 4 of 7 ATTACHMENT A, EXHIBIT 3 Amendments to FY 2013 Table of Organization FY 2009 Actuals FY 2010 Actuals FY 2011 Actuals FY 2012 Adopted Budget FY 2013 Adopted Budget FY 2013 Midyear Changes FY 2013 Adjusted Utilities Accountant 0.00 0.75 0.75 0.75 0.60 0.60 Acct Spec 1.00 2.50 2.50 2.50 2.55 2.55 Admin Assistant 1.00 1.00 1.00 1.00 1.00 1.00 Administrative Associate I 2.00 2.00 2.00 2.00 2.00 2.00 Administrative Associate II 7.00 7.00 7.00 7.00 7.00 7.00 Assistant Director Utilities Engineering 1.00 1.00 1.00 1.00 1.00 1.00 Assistant Director Utilities Operations 1.00 1.00 1.00 1.00 1.00 1.00 Assistant Director Utl Cust Support Svs 1.00 1.00 1.00 1.00 1.00 1.00 Assoc Res Planner 1.00 2.00 0.00 0.00 0.00 0.00 Asst Dir Ut/Res Mgmt 1.00 1.00 1.00 1.00 1.00 1.00 Asst Director Adm Svcs 0.00 0.00 0.00 0.10 0.00 0.00 Asst To City Mgr 0.00 0.00 0.35 0.35 0.35 0.35 Business Analyst 2.87 2.87 2.87 4.87 5.87 5.87 Cathodic Protection Technician Assistant 0.00 1.00 1.00 1.00 1.00 1.00 Cathodic Tech 1.00 1.00 1.00 1.00 1.00 1.00 Cement Finisher 1.00 1.00 1.00 1.00 1.00 1.00 Communications Mgr 0.00 0.00 1.00 1.00 1.00 1.00 Contracts Administrator 1.00 1.00 1.00 1.00 1.00 1.00 Coord Util Saf & Sec 1.00 1.00 1.00 1.00 1.00 1.00 Coord Utility Proj 4.00 4.00 5.00 4.00 4.00 4.00 Cust Srv Specialist‐L 1.00 2.00 2.00 2.00 2.00 2.00 Cust Svc Represent 5.00 5.00 5.00 5.00 5.00 5.00 Cust Svc Spec 2.00 2.00 2.00 2.00 2.00 2.00 Deputy Chief/Fire Marshall 0.08 0.08 0.08 0.08 0.08 0.08 Deputy Dir Adm Svcs 0.20 0.20 0.20 0.00 0.00 0.00 Dir Adm Svcs/Chief Financial Officer 0.15 0.15 0.15 0.15 0.25 0.25 Dir Utilities 1.00 1.00 1.00 1.00 1.00 1.00 Elec Asst I 5.00 5.00 5.00 5.00 4.00 4.00 Elec Undgd Inspec 2.00 2.00 2.00 2.00 2.00 2.00 Electric Project Engineer 1.00 1.00 2.00 2.00 2.00 2.00 Electric Underground Inspector ‐ Lead 1.00 1.00 1.00 1.00 1.00 1.00 Electrician 14.00 14.00 14.00 14.00 14.00 14.00 Electrician‐Lead 6.00 6.00 6.00 6.00 6.00 6.00 Engineer 4.00 4.00 4.00 4.00 4.00 4.00 Engr Mgr ‐ Electric 1.00 1.00 1.00 1.00 1.00 1.00 Engr Mgr ‐ WGW 1.00 1.00 1.00 1.00 1.00 1.00 Engr Tech III 3.00 3.00 3.00 3.00 3.00 3.00 Equip Operator 2.00 1.00 1.00 1.00 1.00 1.00 Gas System Tech 2.00 1.00 2.00 2.00 2.00 2.00 Gas System Technician II 0.00 1.00 1.00 1.00 1.00 1.00 Haz Mat Inspector 0.06 0.06 0.06 0.06 0.06 0.06 Haz Mat Spec 0.03 0.03 0.00 0.00 0.00 0.00 Heavy Equip Oper 10.00 10.00 9.00 9.00 8.00 8.00 Inspector, Field Svc 4.00 4.00 4.00 4.00 5.00 5.00 Lineper/Cable Spl 11.00 11.00 11.00 11.00 11.00 11.00 Lineper/Cable Spl‐L 4.00 4.00 4.00 4.00 4.00 4.00 Maint Mech 1.00 1.00 1.00 0.00 0.00 0.00 Maintenance Mechanic‐Welding 1.00 1.00 1.00 2.00 2.00 2.00 Manager Energy Risk 1.00 1.00 1.00 0.00 0.00 0.00 Marketing Eng 1.00 1.00 1.00 1.00 1.00 1.00 Page 5 of 7 ATTACHMENT A, EXHIBIT 3 Amendments to FY 2013 Table of Organization FY 2009 Actuals FY 2010 Actuals FY 2011 Actuals FY 2012 Adopted Budget FY 2013 Adopted Budget FY 2013 Midyear Changes FY 2013 Adjusted Meter Reader 6.00 6.00 6.00 6.00 6.00 6.00 Meter Reader‐Lead 1.00 1.00 1.00 1.00 1.00 1.00 Mgr Cust Svc & Meter Reading 1.00 1.00 1.00 1.00 1.00 1.00 Mgr Electric Oprns 1.00 1.00 1.00 1.00 1.00 1.00 Mgr Util Mkt Svcs 1.00 1.00 1.00 1.00 1.00 1.00 Mgr Util Oprns WGW 1.00 1.00 1.00 1.00 1.00 1.00 Mgr Util Telecomm 1.00 1.00 1.00 1.00 1.00 1.00 Offset Equip Op 0.00 0.00 0.48 0.48 0.48 0.48 OH UG Troubleman 0.00 0.00 0.00 0.00 2.00 2.00 Planner 0.00 0.00 0.30 0.30 0.30 0.30 Power Engr 2.00 2.00 3.00 3.00 3.00 3.00 Program Assistant I 3.00 3.00 3.00 3.00 3.00 3.00 Project Engineer 6.00 6.00 5.00 5.00 5.00 5.00 Project Mgr 0.75 0.75 0.75 0.75 0.75 0.75 Resource Planner 4.00 4.00 5.00 5.00 5.00 5.00 Restoration Lead 0.00 1.00 1.00 1.00 1.00 1.00 Senior Management Analyst 1.00 1.00 1.00 1.00 1.00 1.00 Sr Mech 1.00 1.00 1.00 1.00 1.00 1.00 Sr Mkt Analyst 1.00 1.00 1.00 1.00 1.00 1.00 Sr Util Field Svc Rep 1.00 1.00 1.00 1.00 1.00 1.00 Sr Water Sys Oper 2.00 2.00 2.00 2.00 2.00 2.00 Sr. Accountant 0.00 0.75 0.75 0.75 0.70 0.70 Sr. Business Analyst 1.00 1.00 2.00 2.00 2.00 2.00 Sr. Deputy City Attorney 0.00 0.00 1.00 1.00 1.00 1.00 Sr. Electric Project Engineer 4.00 4.00 4.00 4.00 4.00 4.00 Sr. Financial Analyst 0.00 0.60 1.10 1.60 1.40 1.40 Sr. Performance Auditor 0.00 0.00 1.00 1.00 1.00 1.00 Sr. Project Engineer 4.00 4.00 4.00 4.00 4.00 4.00 Sr. Resource Originator 1.00 1.00 0.00 0.00 0.00 0.00 Sr. Resource Planner 6.00 6.00 7.00 7.00 7.00 7.00 Sr. Technologist 0.87 0.87 0.87 0.87 0.87 0.87 Storekeeper 2.00 2.00 2.00 2.00 2.00 2.00 Supervising Electric Project Engineer 2.00 2.00 1.00 1.00 1.00 1.00 Supervising Project Engineer 0.00 0.00 1.00 1.00 1.00 1.00 Supv Water Trans 1.00 1.00 1.00 1.00 1.00 (1.00) 0.00 Supv WGW 5.00 5.00 5.00 5.00 5.00 (5.00) 0.00 Sustainability Manager 0.00 0.00 0.00 0.00 0.00 0.00 Tree Maint Person 1.00 1.00 1.00 1.00 1.00 1.00 Util Acct Rep 3.00 3.00 3.00 4.00 4.00 4.00 Util Comp Tech 2.00 2.00 2.00 2.00 2.00 2.00 Util Comp Tech‐L 1.00 1.00 1.00 1.00 1.00 1.00 Util Credit/Col Spec 1.00 1.00 1.00 1.00 1.00 1.00 Util Engr Estimator 6.00 6.00 5.00 4.00 5.00 5.00 Util Fld Svcs Rep 7.00 5.00 5.00 5.00 5.00 5.00 Util Install/Rep 11.00 11.00 12.00 12.00 12.00 12.00 Util Install/Rep Ast 1.00 1.00 1.00 1.00 1.00 1.00 Util Install/Rep‐L 5.00 5.00 5.00 5.00 5.00 5.00 Util Locator 3.00 3.00 3.00 3.00 3.00 3.00 Utilities Supervisor 0.00 0.00 0.00 0.00 0.00 6.00 6.00 Util Syst Oper 5.00 5.00 5.00 5.00 5.00 5.00 Page 6 of 7 ATTACHMENT A, EXHIBIT 3 Amendments to FY 2013 Table of Organization FY 2009 Actuals FY 2010 Actuals FY 2011 Actuals FY 2012 Adopted Budget FY 2013 Adopted Budget FY 2013 Midyear Changes FY 2013 Adjusted Utilities Compliance Manager 0.00 0.00 1.00 1.00 1.00 1.00 Utilities Supervisor 5.00 5.00 5.00 5.00 5.00 5.00 Utility Key Account Rep ‐ S 3.00 3.00 3.00 3.00 3.00 3.00 Utl Install Repair Lead‐Welding Cert 2.00 2.00 2.00 2.00 2.00 2.00 Utl Install Repair‐Welding Cert 3.00 3.00 3.00 3.00 3.00 3.00 Warehouse Supv 0.00 0.00 0.50 0.50 0.50 0.50 Water Sys Oper II 5.00 4.00 4.00 4.00 4.00 4.00 Wtr Mtr Crs Cn Tec 2.00 2.00 3.00 3.00 3.00 3.00 Total Utilities 238.01 241.61 250.71 251.11 253.76 0.00 253.76 Information Technology Admin Assistant 0.07 0.07 0.07 1.07 1.00 1.00 Administrative Associate II 1.00 1.00 1.00 0.00 0.00 0.00 Administrative Associate III 0.04 0.04 0.00 0.00 0.00 0.00 Asst Director Adm Svcs* 0.40 0.40 0.40 0.40 0.30 (0.10) 0.20 Business Analyst 0.90 0.90 1.00 1.00 1.00 1.00 Chief Information Officer 1.00 1.00 1.00 1.00 1.00 1.00 Desktop Technician 5.00 5.00 5.00 5.00 5.00 5.00 Dir Adm Svcs/Chief Financial Officer* 0.35 0.35 0.35 0.35 0.25 (0.05) 0.20 Information Technology Security Manager 0.00 0.00 0.00 0.00 1.00 1.00 Management Analyst 0.00 0.00 0.50 0.50 1.00 1.00 Mgr IT 3.00 3.00 3.00 3.00 4.00 4.00 Sr. Business Analyst 1.80 1.80 2.00 2.00 2.00 2.00 Sr. Financial Analyst 0.09 0.09 0.09 0.09 0.00 0.00 Sr. Technologist 13.00 13.00 13.00 13.00 12.00 12.00 Technologist 4.00 4.00 3.00 3.00 3.00 3.00 Total Information Technology 30.65 30.65 30.41 30.41 31.55 (0.15) 31.40 Special Revenue Acct Spec 0.00 0.00 0.50 0.50 0.50 0.50 Administrative Associate II 0.20 0.20 0.20 0.20 0.20 0.20 Community Serv Offcr 0.00 0.00 0.50 0.50 0.50 0.50 Management Analyst* 0.00 0.00 0.00 0.00 0.50 (0.50) 0.00 Planner 1.00 0.95 0.95 0.95 0.95 0.95 Total Special Revenue 1.20 1.15 2.15 2.15 2.65 (0.50) 2.15 * Change is to correct the Table of Organization only. Funding was transferred in the Fiscal Year 2013 adopted budget. Page 7 of 7 *NOT YET APPROVED* 130221 sh 0140085 1 Resolution No. ____ Resolution of the Council of the City of Palo Alto Amending the 2011- 2013 Compensation Plan for Management and Professional Personnel Adopted by Resolution No. 9282 to Change the Title of Two Positions, Change the Salary for Two Positions, Correct the Salary Sheet for Three Positions, Correct the Grade Code for One Position and Eliminate One Position The Council of the City of Palo Alto RESOLVES as follows: SECTION 1. Pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto, the 2011-2013 Compensation Plan for Management and Professional Personnel, adopted by Resolution No. 9282 is hereby amended to change the title of two positions, change the salary for two positions, correct the salary sheet for three positions, correct the grade code for one position and eliminate one position, as set forth in Exhibit “A”, attached hereto and incorporated herein by reference, effective with the pay period including April 8, 2013. SECTION 2. The Director of Administrative Services is authorized to implement the amended Compensation Plan as set forth in Section 1. SECTION 3. The Council finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ___________________________ ______________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ___________________________ ______________________________ City Attorney City Manager _____________________________ Director of Administrative Services ____________________________ Chief People Officer *NOT YET APPROVED* 130221 sh 0140085 2 EXHIBIT A Management/Professional Compensation Plan Changes – Effective April 8, 2013 Job Code Classification Title Grade Code Control Point Approx. Annual Hourly 43 Supervisor, Animal Services (elimination) 47 6,836.04 82,032.45 39.44 101 Human Resources Representative (title and salary change reclass for HR Assistant) 49 6,495.05 77,940.55 37.47 45 Mgr, Employee Relations and Training (title and salary change for one Sr. HR Administrator) 31 10,249.60 122,995.23 59.13 154 Community Services Manager (salary sheet correction) 42 7,767.98 93,215.78 44.82 169 Community Services Senior Program Manager (salary sheet correction) 41 7,955.44 95,465.30 45.90 83 Community Services Superintendent (salary sheet correction) 34 9,501.54 114,018.53 54.82 146 Warehouse Supervisor (grade code correction) 47 6,836.04 82,032.45 39.44 ATTACHMENT C FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Project Project Project Expenditures Expenditures Expenditures Expenditures Expenditures Number Title Category YTD AC-09001 Children's Theatre Replacement and Expansion Buildings and Facilities AC-09002 Community Theatre Sound System Replacement Buildings and Facilities CA-01014 Community Services Facilities Lighting Enhancements Buildings and Facilities $3,663 CC-09001 Dimmer Replacement and Lighting System Buildings and Facilities $995 $7,611 $4,609 735 CC-10000 Replacement of Cubberley Gym B Bleachers Buildings and Facilities 6,739 29,495 CC-11000 Cubberley Gym Activity Room Buildings and Facilities 58,041 FD-08001 Fire Station #6 Improvements Buildings and Facilities 8,061 48,110 271 OS-07003 Foothills Park Maintenance Building Rehabilitation Buildings and Facilities 249,933 General Fund Capital Improvement Program Project Expenditures for Fiscal Years 2009 - 2013 Page 1 of 22 2/26/2013 ATTACHMENT C FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Project Project Project Expenditures Expenditures Expenditures Expenditures Expenditures Number Title Category YTD General Fund Capital Improvement Program Project Expenditures for Fiscal Years 2009 - 2013 PE-04010 Children's Library Improvements & Expansion Buildings and Facilities 58,561 PE-04011 Cambridge Parking Structure Improvements Buildings and Facilities PE-04012 Mitchell Park Library & Community Center Improvements Buildings and Facilities 179,071 123 PE-04014 Animal Shelter Expansion & Renovation Buildings and Facilities 762,057 61,539 PE-05002 Main Library Space Reconfiguration Buildings and Facilities PE-05010 College Terrace Library Improvements Buildings and Facilities 337,154 1,545,763 846,020 7,344 4,600 PE-06001 San Antonio Bridge Structural Repairs & Maintenance Buildings and Facilities 494 82,782 PE-08005 Municipal Service Center Resurfacing Buildings and Facilities 752,021 326,898 Page 2 of 22 2/26/2013 ATTACHMENT C FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Project Project Project Expenditures Expenditures Expenditures Expenditures Expenditures Number Title Category YTD General Fund Capital Improvement Program Project Expenditures for Fiscal Years 2009 - 2013 PE-09003 City Facility Parking Lot Maintenance Buildings and Facilities 51,098 PE-09005 Downtown Library Improvements Buildings and Facilities 78,162 562,707 3,133,576 714,043 13,129 PE-09006 Mitchell Park Library & Community Center (New Construction) Buildings and Facilities 509,024 3,278,486 10,381,000 14,213,182 5,358,481 PE-09010 Library & Community Center Temporary Facilities Buildings and Facilities 28,866 518,623 110,020 2,205 199 PE-10002 Ventura Community Center and Park Buildings and Facilities 13,283 21,130 10,290 PE-11000 Main Library New Construction and Improvements Buildings and Facilities 792,913 1,139,804 267,266 PE-11012 Temporary Main Library Buildings and Facilities 96,435 1,715 PE-12017 City Hall 1st Floor Buildings and Facilities 63,537 30,098 Page 3 of 22 2/26/2013 ATTACHMENT C FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Project Project Project Expenditures Expenditures Expenditures Expenditures Expenditures Number Title Category YTD General Fund Capital Improvement Program Project Expenditures for Fiscal Years 2009 - 2013 PE-89004 Yacht Harbor Improvements Buildings and Facilities 21,584 PE-98020 Public Safety Building Buildings and Facilities 1,000,414 175,289 30,910 14,943 158 PE-95030 Downtown Parking Structure Buildings and Facilities 155 469 PF-00006 Roofing Replacement Buildings and Facilities 21,073 251,344 104,617 319,495 PF-01002 Civic Center Infrastructure Improvements Buildings and Facilities 4,915,782 1,344,006 3,803,962 1,950,609 200,107 PF-01003 Building Systems Improvements Buildings and Facilities 114,152 36,098 74,876 59,798 27,061 PF-01004 Fire Station Improvements Buildings and Facilities 575,700 237,018 394 PF-01005 Lucie Stern Community Center Improvements Buildings and Facilities Page 4 of 22 2/26/2013 ATTACHMENT C FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Project Project Project Expenditures Expenditures Expenditures Expenditures Expenditures Number Title Category YTD General Fund Capital Improvement Program Project Expenditures for Fiscal Years 2009 - 2013 PF-02022 Facility Interior Finishes Buildings and Facilities 47,116 11,076 23,874 234,085 PF-04000 Security System Improvements Buildings and Facilities 8,903 3,581 PF-04001 General Building Study Buildings and Facilities PF-04010 Cubberley Mechanical & Electrical Upgrades Buildings and Facilities 5,218 9,369 PF-05002 Municipal Service Center Renovation Buildings and Facilities 12,057 3,530 12,176 PF-05003 Foothills Park Interpretive Center Improvements Buildings and Facilities 1,290 12,897 141,633 PF-06002 Ventura Buildings' Improvements Buildings and Facilities PF-06003 Cubberley Community Center Fire Alarm System Buildings and Facilities 70,949 Page 5 of 22 2/26/2013 ATTACHMENT C FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Project Project Project Expenditures Expenditures Expenditures Expenditures Expenditures Number Title Category YTD General Fund Capital Improvement Program Project Expenditures for Fiscal Years 2009 - 2013 PF-06004 Cubberley Restroom Renovation Buildings and Facilities 27,422 3,129 3,809 PF-07000 Art Center Electrical & Mechanical Upgrades Buildings and Facilities 132,737 234,143 543,877 4,628,983 2,014,007 PF-07001 ADA Compliance - Cubberley Community Center Buildings and Facilities 13,512 205,388 PF-07003 Children's Theatre Fire/Life Safety Upgrade Buildings and Facilities 7,592 6,150 131 PF-07011 Roth Building Maintenance Buildings and Facilities 1,931 3,729 1,205 PF-08000 Art Center Kiln Hood Replacement Buildings and Facilities 60,654 14,570 PF-09000 Children's Theatre Improvements Buildings and Facilities 1,357 PF-09002 Lucie Stern Community Center and Theatre Exterior Paint Buildings and Facilities 4,510 90,816 Page 6 of 22 2/26/2013 ATTACHMENT C FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Project Project Project Expenditures Expenditures Expenditures Expenditures Expenditures Number Title Category YTD General Fund Capital Improvement Program Project Expenditures for Fiscal Years 2009 - 2013 PF-10000 Civic Center Chiller Drive Replacement Buildings and Facilities 72,380 PF-10001 Rinconada Pool Plaster Buildings and Facilities 117,756 PF-10002 Lot "J" Cowper/Webster Structural Repairs Buildings and Facilities 23,682 15,260 32,672 447,948 PF-12005 Council Conference Room Renovations Buildings and Facilities PF-93009 ADA Compliance Buildings and Facilities 121,617 235,410 9,994 167,537 Total Buildings and Facilities $10,082,066 $9,311,891 $20,250,843 $23,867,878 $8,380,960 AC-86017 Art in Public Places Land and Land Improvements $21,556 $17,256 $77,956 $17,171 AS-08000 Acquisition of Los Altos Treatment Plant Land and Land Improvements 2,306,958 2,252,250 Page 7 of 22 2/26/2013 ATTACHMENT C FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Project Project Project Expenditures Expenditures Expenditures Expenditures Expenditures Number Title Category YTD General Fund Capital Improvement Program Project Expenditures for Fiscal Years 2009 - 2013 AS-09000 City of Palo Alto Municipal Airport Transition Project Land and Land Improvements 39,075 67,775 4,050 PE-09004 Los Altos Treatment Plant Master Plan Study Land and Land Improvements 135,905 15,468 16,278 Total Land and Land Improvements $2,503,494 $2,352,749 $98,284 $17,171 $0 AS-10001 Sustainability Contingency Miscellaneous FD-09001 Fire Apparatus Equipment Replacement Miscellaneous $48,352 $261,283 FD-09002 Jaws of Life Hurst Tool Replacement Miscellaneous 60,905 FD-12000 ALS EKG Monitor Replacement Miscellaneous LB-11000 Furniture & Technology for Measure N Project Miscellaneous $28,124 $178,774 14,123 Page 8 of 22 2/26/2013 ATTACHMENT C FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Project Project Project Expenditures Expenditures Expenditures Expenditures Expenditures Number Title Category YTD General Fund Capital Improvement Program Project Expenditures for Fiscal Years 2009 - 2013 LB-94018 Library Automation Service Miscellaneous 732 PE-12002 Tree Wells - University Avenue Irrigation Miscellaneous 28,743 6,301 PE-12004 Municipal Services Center Facilities Study Miscellaneous 220 PE-12009 Alma Guardrail Miscellaneous 5,888 29,431 PD-04010 Fire Portable Radio Replacement Miscellaneous PD-07001 SWAT Van Replacement Miscellaneous PD-08000 Crime Scene Evidence Collection Vehicle Miscellaneous 174,201 6,039 PD-93012 Fire Communications Computer Systems Miscellaneous Page 9 of 22 2/26/2013 ATTACHMENT C FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Project Project Project Expenditures Expenditures Expenditures Expenditures Expenditures Number Title Category YTD General Fund Capital Improvement Program Project Expenditures for Fiscal Years 2009 - 2013 PD-99013 Police Records Management System Miscellaneous PF-12004 Citywide Backflow Preventer Installations Miscellaneous 95,643 PL-02023 Master Schematic Design Miscellaneous PO-10002 Downtown Tree Grates Miscellaneous 29,879 8,136 PO-12002 LATP Site Development Preparation & Security Miscellaneous 8,636 Total Miscellaneous $109,989 $291,162 $210,461 $228,300 $145,498 FD-05000 Sixteen (16) ALS Monitors Non-Infrastructure Management Plan $62,650 $434 PD-07000 Mobile Command Vehicle Non-Infrastructure Management Plan 695,337 Page 10 of 22 2/26/2013 ATTACHMENT C FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Project Project Project Expenditures Expenditures Expenditures Expenditures Expenditures Number Title Category YTD General Fund Capital Improvement Program Project Expenditures for Fiscal Years 2009 - 2013 PE-05001 Photovoltaic Design and Installations Non-Infrastructure Management Plan 325,978 $6,448 PE-07011 Library Service Model Analysis Non-Infrastructure Management Plan 1,478 PG-08001 Golf Course Driving Range Turf & Netting Non-Infrastructure Management Plan PL-05002 Charleston/Arastradero Corridor Plan Non-Infrastructure Management Plan 193,613 26,988 PL-06001 Adobe Creek Bicycle Bridge Replacement Non-Infrastructure Management Plan 4,184 PL-06002 Comprehensive Parking Signage Plan Non-Infrastructure Management Plan 43,470 4,248 1,224 PL-06005 Installation of Ticket Machines Non-Infrastructure Management Plan 2,250 Total Non-Infrastructure Management Plan $440,010 $6,448 $889,384 $31,236 $1,224 Page 11 of 22 2/26/2013 ATTACHMENT C FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Project Project Project Expenditures Expenditures Expenditures Expenditures Expenditures Number Title Category YTD General Fund Capital Improvement Program Project Expenditures for Fiscal Years 2009 - 2013 AC-10000 Junior Museum & Zoo New Bobcat Habitat Parks and Open Space $101,790 $23,210 AC-12001 Junior Museum & Zoo Perimeter Fence and Footpath Parks and Open Space 31,101 OS-00001 Open Space Trails and Amenities Parks and Open Space $123,193 97,766 47,473 162,466 62,917 OS-00002 Open Space Lakes & Ponds Maintenance Parks and Open Space 35,909 63,263 54,097 24,615 15,000 OS-07000 Foothills Park Road Improvements Parks and Open Space 25,000 150,000 OS-07002 Foothills Park Interpretive Center & Open Space Maintenance Yard Parking Parks and Open Space 2,302 OS-09001 Off-Road Pathway Resurfacing and Repair Parks and Open Space 25,463 24,719 4,130 OS-09002 Baylands Emergency Access Levee Repair Parks and Open Space 7,690 Page 12 of 22 2/26/2013 ATTACHMENT C FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Project Project Project Expenditures Expenditures Expenditures Expenditures Expenditures Number Title Category YTD General Fund Capital Improvement Program Project Expenditures for Fiscal Years 2009 - 2013 PE-00110 College Terrace Park Improvements Parks and Open Space 154,927 522 PE-05300 Arastradero Preserve Gateway Parks and Open Space 9,156 PE-06004 Bowden Park Improvements Parks and Open Space PE-06005 University Avenue Gateway Landscaping Improvements Parks and Open Space 166,612 6,709 1,479 429 PE-06007 Park Restroom Installation Parks and Open Space 41,134 100,096 224,048 98,119 44,083 PE-06008 Johnson Park Improvements Parks and Open Space PE-07002 Hoover Park Improvements Parks and Open Space 67,053 PE-07003 Ramos Park Improvements Parks and Open Space Page 13 of 22 2/26/2013 ATTACHMENT C FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Project Project Project Expenditures Expenditures Expenditures Expenditures Expenditures Number Title Category YTD General Fund Capital Improvement Program Project Expenditures for Fiscal Years 2009 - 2013 PE-07005 California Avenue Improvements Parks and Open Space 49,900 465,324 53,810 PE-07006 Boulware Park Improvements Parks and Open Space 3,799 PE-07007 Cubberley Turf Renovation Parks and Open Space 190,950 969,963 PE-07009 Baylands Athletic Center Fencing, Dugout & Trailhead Parking Parks and Open Space 46,164 PE-08002 Peers Park Improvements Parks and Open Space 301,383 PE-08004 Lytton Plaza Renovation Parks and Open Space 23,530 725,733 2,545 11,793 25 PE-09002 Greer Park Phase IV Parks and Open Space 168,231 515,091 925,076 142,030 2,669 PE-12003 Rinconada Park Master Plan & Design Parks and Open Space 121,690 81,317 Page 14 of 22 2/26/2013 ATTACHMENT C FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Project Project Project Expenditures Expenditures Expenditures Expenditures Expenditures Number Title Category YTD General Fund Capital Improvement Program Project Expenditures for Fiscal Years 2009 - 2013 PE-12012 Eleanor Pardee Park Improvements Parks and Open Space 21,827 4,901 PE-12013 Magical Bridge Playground Parks and Open Space 129,237 39,185 PE-13005 City Hall King Plaza Landscape Parks and Open Space 307 PE-13007 El Camino Dog Park Parks and Open Space 169 PE-13016 El Camino Park Expanded Parking Lot and New Restroom Parks and Open Space 3,173 PE-13020 Byxbee Park Trails Parks and Open Space 5,704 PE-98003 Mitchell Park Facilities Parks and Open Space 24,962 PF-12001 Parks and PWD Trees Work Space Improvements Parks and Open Space 836 746 Page 15 of 22 2/26/2013 ATTACHMENT C FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Project Project Project Expenditures Expenditures Expenditures Expenditures Expenditures Number Title Category YTD General Fund Capital Improvement Program Project Expenditures for Fiscal Years 2009 - 2013 PF-13003 Parks Master Plan Parks and Open Space 5,617 PG-00010 Park Facilities Improvements Parks and Open Space 1,361 PG-04010 Stanford/Palo Alto Community Playing Field Parks and Open Space 869 PG-06001 Tennis and Basketball Court Resurfacing Parks and Open Space 107,117 100,159 77,512 53,635 506 PG-06003 Benches, Signage, Fencing, Walkways, and Perimeter Landscaping Parks and Open Space 85,766 73,480 118,366 105,225 70,045 PG-07000 Heritage Park Playground Parks and Open Space PG-07700 Golf Course Irrigation Pump, Motors & Control Panel Replacement Parks and Open Space PG-09002 Park and Open Space Emergency Repairs Parks and Open Space 73,190 50,883 147,651 52,875 20,670 Page 16 of 22 2/26/2013 ATTACHMENT C FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Project Project Project Expenditures Expenditures Expenditures Expenditures Expenditures Number Title Category YTD General Fund Capital Improvement Program Project Expenditures for Fiscal Years 2009 - 2013 PG-09003 Park Maintenance Shop Remodel Parks and Open Space 402 2,858 55,414 2,244 PG-11000 Hopkins Park Improvements Parks and Open Space PG-11001 Cogswell Plaza Improvements Parks and Open Space 11,123 124,904 PG-11002 Monroe Park Improvements Parks and Open Space PG-11003 Scott Park Improvements Parks and Open Space PG-12001 Stanford / Palo Alto Playing Field Netting Parks and Open Space PG-12002 Golf Course Tree Maintenance Parks and Open Space 21,014 PG-12004 Sarah Wallis Park Improvements Parks and Open Space Page 17 of 22 2/26/2013 ATTACHMENT C FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Project Project Project Expenditures Expenditures Expenditures Expenditures Expenditures Number Title Category YTD General Fund Capital Improvement Program Project Expenditures for Fiscal Years 2009 - 2013 PG-12005 Relocate Power Poles for Soccer Field Parks and Open Space PG-12006 Magical Bridge Playground Parks and Open Space PG-98001 School Site Irrigation Parks and Open Space 4,596 161,399 Total Parks and Open Space $1,732,969 $3,459,755 $1,730,681 $1,113,288 $520,729 PE-00104 San Antonio Road Median Improvements Streets and Sidewalks $743,106 $239,404 $142,556 $676,384 221,915 PE-00105 Embarcadero Road Median Improvements Streets and Sidewalks PE-01013 El Camino Median Landscape Streets and Sidewalks 4,525 PE-06006 Alma Street Landscape Improvements Streets and Sidewalks 40,901 26,371 Page 18 of 22 2/26/2013 ATTACHMENT C FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Project Project Project Expenditures Expenditures Expenditures Expenditures Expenditures Number Title Category YTD General Fund Capital Improvement Program Project Expenditures for Fiscal Years 2009 - 2013 PE-10006 Bridge Rail, Abutment, and Deck Repair Streets and Sidewalks 167,062 PE-11011 Highway 101 Pedestrian / Bicycle Overcrossing Streets and Sidewalks 36,385 194,020 115,011 67,721 PE-12011 Newell Road Bridge / San Francisquito Creek Bridge Replacement Streets and Sidewalks 55,715 PE-13011 Charleston/Arastradero Corridor Project Streets and Sidewalks 2,393 PE-13022 University Avenue Pedestrian/Bicycle Underpass Rehabilatation Streets and Sidewalks 151,321 PE-86070 Street Improvements (Street Improvement Fund) Streets and Sidewalks 3,702,381 3,658,566 5,110,791 3,170,679 PL-00026 Safe Routes to School Streets and Sidewalks 30,000 20,750 87,321 113,957 PL-04010 Bicycle Transportation Plan Implementation Project Streets and Sidewalks 30,000 80,862 103,599 24,469 Page 19 of 22 2/26/2013 ATTACHMENT C FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Project Project Project Expenditures Expenditures Expenditures Expenditures Expenditures Number Title Category YTD General Fund Capital Improvement Program Project Expenditures for Fiscal Years 2009 - 2013 PL-05003 College Terrace Traffic Calming Streets and Sidewalks 545 PL-05030 Traffic Signal Upgrades Streets and Sidewalks 39,983 279,590 183,141 244,272 PL-07002 El Camino Real/ Stanford Intersection Streets and Sidewalks 2,490 4,790 247,112 341,683 53,337 PL-11001 Dinah SummerHill Pedestrian/Bicycle Path Streets and Sidewalks 188,187 1,344 PL-11002 California Avenue Transit Hub Corridor Streets and Sidewalks 16,361 27,472 PL-11003 Palo Alto Traffic Signal Central System Streets and Sidewalks 35,528 PL-11004 Alma Street Traffic Signal Improvements Streets and Sidewalks 645 PL-12000 Transporation and Parking Improvements Streets and Sidewalks 91,002 148,391 Page 20 of 22 2/26/2013 ATTACHMENT C FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Project Project Project Expenditures Expenditures Expenditures Expenditures Expenditures Number Title Category YTD General Fund Capital Improvement Program Project Expenditures for Fiscal Years 2009 - 2013 PL-98013 School Commute Safety Improvements (SIF) Streets and Sidewalks 2,490 6,170 PO-05054 Street lights Improvements Streets and Sidewalks 15,970 40,430 159,070 61,844 PO-11000 Sign Reflectivity Upgrade Streets and Sidewalks 20,792 PO-11001 Thermoplastic Lane Marking and Striping Streets and Sidewalks 29,639 127,958 PO-12000 Wilkie Way Bridge Deck Replacement Streets and Sidewalks PO-12001 Curb and Gutter Repairs Streets and Sidewalks 1851 129,118 PO-12003 Foothills Fire Management Streets and Sidewalks 19,884 PO-89003 Sidewalk Improvements Streets and Sidewalks 1,675,527 1,341,916 1,211,917 1,673,715 Page 21 of 22 2/26/2013 ATTACHMENT C FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Project Project Project Expenditures Expenditures Expenditures Expenditures Expenditures Number Title Category YTD General Fund Capital Improvement Program Project Expenditures for Fiscal Years 2009 - 2013 Total Streets and Sidewalks $6,227,373 $5,855,059 $7,421,556 $6,977,019 $961,322 Page 22 of 22 2/26/2013 ATTACHMENT D Total Budget FY 2013 FY 2013 FY 2013 FY 2013 FY 2013 Estimated Project Project Project From Available Expenditures Labor Contingencies Encumbrances Remaining Percent Project Completion Number Title Category Inception Budget Adjustments Balance Complete Status Date Comments AS-10001 Sustainability Contingency Miscellaneous $400,000 $100,000 $0 $0 $0 $0 $100,000 75% Complete Dec 12 Sustainability contingency will not be used starting in FY 2014. 2/26/2013 FY 2013 MID-YEAR CAPITAL IMPROVEMENT PROGRAM PROJECTS STATUS GENERAL FUND ADMINISTRATIVE SERVICES DEPARTMENT MULTI-YEAR PROJECTS 1 of 35 ATTACHMENT D Total Budget FY 2013 FY 2013 FY 2013 FY 2013 FY 2013 Estimated Project Project Project From Available Expenditures Labor Contingencies Encumbrances Remaining Percent Project Completion Number Title Category Inception Budget Adjustments Balance Complete Status Date Comments AC-09001 Children's Theatre Replacement and Expansion Buildings and Facilities $100,000 $100,000 $0 $0 $0 $4,600 $95,400 5% Pre-Design Jun 13 Needs assessment has been completed. Requests for Proposal prepared. AC-09002 Community Theater Sound System Replacement Buildings and Facilities $200,000 $200,000 $0 $0 $0 $18,100 $181,900 9% Pre-Design Jun 13 Needs assessment has been completed. Requests for Proposal prepared. AC-12001 Junior Museum & Zoo Perimeter Fence and Footpath Parks and Open Space $50,000 $50,000 $31,101 $0 $0 $0 $18,899 62% Complete Sep 12 Projected completed. CC-09001 Dimmer Replacement and Lighting System Buildings and Facilities $152,821 $144,215 $735 $0 $0 $9,815 $133,665 13% Design Jun 13 Project has been delayed as it will now be a design- and-build contract. OS-09002 Baylands Emergency Access Levee Repair Parks and Open Space $175,000 $175,000 $7,690 $0 $0 $38,513 $128,797 26% Pre-Design Jun 13 Survey work for levee done by Public Works Engineering. Project now independent of and will no longer be paired with JPA flood control project. PG-09003 Park Maintenance Shop Remodel Parks and Open Space $159,096 $98,179 $0 $0 $0 $1 $98,178 38% Design TBD Since there is common shared space, this project will now be designed and constructed in-house by Public Works Facilities Management in conjunction with the Tree Division. FY 2013 MID-YEAR CAPITAL IMPROVEMENT PROGRAM PROJECTS STATUS GENERAL FUND COMMUNITY SERVICES DEPARTMENT MINOR PROJECTS 2 of 35 ATTACHMENT D Total Budget FY 2013 FY 2013 FY 2013 FY 2013 FY 2013 Estimated Project Project Project From Available Expenditures Labor Contingencies Encumbrances Remaining Percent Project Completion Number Title Category Inception Budget Adjustments Balance Complete Status Date Comments FY 2013 MID-YEAR CAPITAL IMPROVEMENT PROGRAM PROJECTS STATUS GENERAL FUND COMMUNITY SERVICES DEPARTMENT PG-11000 Hopkins Park Improvements Parks and Open Space $95,000 $95,000 $0 $0 $0 $0 $95,000 0% Pre-Design TBD Staff in initial planning and development of scope of contract. PG-11001 Cogswell Plaza Improvements Parks and Open Space $150,000 $139,658 $124,904 $0 $0 $16,217 ($1,463) 101% Complete Oct 12 Project Completed December 2012. PG-11002 Monroe Park Improvements Parks and Open Space $250,000 $250,000 $0 $0 $0 $0 $250,000 0% Pre-Design TBD Staff in initial planning and development of scope of contract. PG-11003 Scott Park Improvements Parks and Open Space $100,000 $100,000 $0 $0 $0 $0 $100,000 0% Design TBD Landscape architect hired for planning and development of scope of contract. Design complete. Staff preparing IFB. PG-12001 Stanford / Palo Alto Playing Field Netting Parks and Open Space $50,000 $50,000 $0 $0 $0 $0 $50,000 0% Design TBD Staff in initial planning and development of scope of contract. PG-12002 Golf Course Tree Maintenance Parks and Open Space $128,986 $128,986 $0 $0 $0 $1,088 $127,898 1% Ongoing Staff in planning and development of services. Timing to be influenced by golf course reconfiguration as well. PG-12004 Sarah Wallis Park Improvements Parks and Open Space $65,000 $65,000 $0 $0 $0 $0 $65,000 0% Pre-Design TBD Staff in initial planning and development of scope of contract. PG-12005 Relocate Power Poles for Soccer Field Parks and Open Space $100,000 $100,000 $0 $0 $0 $0 $100,000 0% Design TBD Project on hold pending staff land evaluation. OS-00001 Open Space Trails & Amenities Parks and Open Space $2,025,720 $231,574 $62,917 $0 $0 $8,431 $160,226 92% Ongoing TBD Various trail improvements at Arastradero, Foothills Park, and Baylands. Year 2 of 3 year contract. OS-00002 Open Space Lakes & Ponds Maintenance Parks and Open Space $442,183 $64,920 $15,000 $0 $0 $0 $49,920 89% Ongoing TBD Year 2 of 3 year contract for maintenance of Boronda Lake. MULTI-YEAR PROJECTS MINOR PROJECTS 3 of 35 ATTACHMENT D Total Budget FY 2013 FY 2013 FY 2013 FY 2013 FY 2013 Estimated Project Project Project From Available Expenditures Labor Contingencies Encumbrances Remaining Percent Project Completion Number Title Category Inception Budget Adjustments Balance Complete Status Date Comments FY 2013 MID-YEAR CAPITAL IMPROVEMENT PROGRAM PROJECTS STATUS GENERAL FUND COMMUNITY SERVICES DEPARTMENT OS-07000 Foothills Park Road Improvements Parks and Open Space $525,000 $125,000 $0 $0 $0 $0 $125,000 76% Ongoing TBD Work is now in-house by Public Works Engineering or combined with their paving contracts. This is anticipated to result in future cost savings to address current overage. OS-09001 Off-Road Pathway Resurfacing and Repair Parks and Open Space $226,357 $226,357 $0 $0 $0 $1 $226,356 0% Ongoing TBD Work is now done in- house by Public Works Engineering or combined with their paving contracts. PG-06001 Tennis & Basketball Court Resurfacing Parks and Open Space $526,443 $35,618 $506 $0 $0 $0 $35,112 93% Ongoing TBD Cubberley Community Center Tennis courts 1-6 completed in FY 2012. Staff in planning for FY 2013. PG-06003 Benches, Signage, Fencing, Walkways, and Perimeter Landscaping Parks and Open Space $675,668 $318,869 $70,045 $0 $0 $14,239 $234,585 65% Ongoing TBD Projects Completed in thus far in FY 201 - Site Amenities: Cogswell Plaza trash receptacles and site furniture. Signage: Design for Rinconada Cultural Center signage. MULTI-YEAR PROJECTS 4 of 35 ATTACHMENT D Total Budget FY 2013 FY 2013 FY 2013 FY 2013 FY 2013 Estimated Project Project Project From Available Expenditures Labor Contingencies Encumbrances Remaining Percent Project Completion Number Title Category Inception Budget Adjustments Balance Complete Status Date Comments FY 2013 MID-YEAR CAPITAL IMPROVEMENT PROGRAM PROJECTS STATUS GENERAL FUND COMMUNITY SERVICES DEPARTMENT PG-09002 Park and Open Space Emergency Repairs Parks and Open Space $357,761 $108,162 $20,670 $0 $0 $10,307 $77,185 78% Ongoing TBD Projects completed thus far in FY 2013: Rinconada Park: Tennis court tripping hazard surface repairs. Werry Park: Repairs to existing playground structure. Briones Park: Repairs to existing playground structure. PG-13001 Stanford / Palo Alto Soccer Turf Replacement Parks and Open Space $100,000 $100,000 $0 $0 $0 $0 $100,000 0% Pre-Design Jun 16 Staff in initial planning and development of scope of contract. PG-13002 El Camino Park Playing Fields and Amenities Parks and Open Space $3,435,286 $3,435,286 $0 $0 $0 $0 $3,435,286 0% Design Jun 14 Pending design changes to parking lot. PG-13003 Golf Reconfiguring Parks and Open Space $545,338 $545,338 $0 $0 $0 $0 $545,338 0% Pre-Design Jun 15 Staff in initial planning. 5 of 35 ATTACHMENT D Total Budget FY 2013 FY 2013 FY 2013 FY 2013 FY 2013 Estimated Project Project Project From Available Expenditures Labor Contingencies Encumbrances Remaining Percent Project Completion Number Title Category Inception Budget Adjustments Balance Complete Status Date Comments FD-05000 Sixteen ALS Monitors Miscellaneous $752 $752 $0 $0 $0 $0 $752 0% Completed FD-08001 Fire Station #6 Improvements Buildings and Facilities $60,000 $0 $0 $0 $0 $0 $0 100% Ongoing TBD We have completed the evaluation on the field monitors and we are proceeding with getting quotes for the replacements. Please move all $$ to FY13 budget. FD-12000 ALS EKG Monitor Replacement Miscellaneous $540,000 $540,000 $0 $0 $0 $516,722 $23,278 100% Completed Dec 12 The Fire Department competed the acquisition of new ALS EKG monitors in Dec 2012. FD-13000 Long Range CCTV Cameras Miscellaneous $65,000 $65,000 $0 $0 $0 $0 $65,000 0% Ongoing TBD The Fire Department is currently evaluating several Themal Imaging Cameras and plans to complete the purchase in the summer of 2013. FY 2013 MID-YEAR CAPITAL IMPROVEMENT PROGRAM PROJECTS STATUS GENERAL FUND FIRE DEPARTMENT MULTI-YEAR PROJECTS 6 of 35 ATTACHMENT D Total Budget FY 2013 FY 2013 FY 2013 FY 2013 FY 2013 Estimated Project Project Project From Available Expenditures Labor Contingencies Encumbrances Remaining Percent Project Completion Number Title Category Inception Budget Adjustments Balance Complete Status Date Comments LB-11000 Furniture & Technology for Library Measure N Project Miscellaneous $4,800,000 $2,168,102 $14,123 $0 $0 $1,017,573 $1,136,406 76% Ongoing Sept 15 Project activity is being coordinated with the construction schedule of the Mitchell Park Library & Community Center and Main Library Measure N building renovations. FY 2013 MID-YEAR CAPITAL IMPROVEMENT PROGRAM PROJECTS STATUS GENERAL FUND LIBRARY SERVICES DEPARTMENT MULTI-YEAR PROJECTS 7 of 35 ATTACHMENT D Total Budget FY 2013 FY 2013 FY 2013 FY 2013 FY 2013 Estimated Project Project Project From Available Expenditures Labor Contingencies Encumbrances Remaining Percent Project Completion Number Title Category Inception Budget Adjustments Balance Complete Status Date Comments PL-05002 Charleston/ Arastradero Corridor Plan Non- Infrastructure Management Plan $1,211,890 $210,505 $0 $0 $0 $1 $210,504 83% Ongoing Dec 13 The City completed implementation of the project as a trial in October 2012. Remaining funds will be used to complete the design phase of the final median island improvements. Final design will be led by Public Works. KEEP OPEN. PL-07002 El Camino Real/ Stanford Intersection Streets and Sidewalks $1,872,003 $1,316,383 $53,337 $0 $0 $16,662 $1,246,384 33% Ongoing Feb 12 Project complete. Close CIP. PL-11001 Dinah SummerHill Pedestrian Bicycle Path Streets and Sidewalks $300,000 $116,650 $1,344 $0 $0 $0 $115,306 62% Ongoing Dec 13 In-house design is complete. Hexagon Transportation Consultants selected to complete traffic study. Additional community outreach planned in the Spring 2013. Parks & Recreation Commission planned in Summer 2013 with construciton in the Fall 2013. KEEP OPEN. FY 2013 MID-YEAR CAPITAL IMPROVEMENT PROGRAM PROJECTS STATUS GENERAL FUND PLANNING AND COMMUNITY ENVIRONMENT DEPARTMENT MINOR PROJECTS MINOR PROJECTS 8 of 35 ATTACHMENT D Total Budget FY 2013 FY 2013 FY 2013 FY 2013 FY 2013 Estimated Project Project Project From Available Expenditures Labor Contingencies Encumbrances Remaining Percent Project Completion Number Title Category Inception Budget Adjustments Balance Complete Status Date Comments FY 2013 MID-YEAR CAPITAL IMPROVEMENT PROGRAM PROJECTS STATUS GENERAL FUND PLANNING AND COMMUNITY ENVIRONMENT DEPARTMENT PL-00026 Local and Neighborhood Collector Street Traffic Calming Program (SIF) ("Safe Routes To Schools") Streets and Sidewalks $1,167,000 $652,839 $113,957 $0 $0 $443,074 $95,808 92% Ongoing TBD This ongoing CIP implements traffic calming improvements along Residential Arterial Streets and also funds the development of Safe Routes to School Programs and Projects at schools. KEEP OPEN. PL-04010 Bicycle and Pedestrian Transportation Plan Implementation Project Streets and Sidewalks $341,149 $118,205 $24,469 $0 $0 $13,234 $80,502 76% Ongoing TBD This ongoing CIP implements project recommendations from the City's Bike Transportation Plan. Active projects include an update of the Bike Transportation Plan and include a new Pedestrian section. Other active projects include bike rack deployments, bike route signage deployment, and the design of bike boulevard facilities. KEEP OPEN. MULTI-YEAR PROJECTS 9 of 35 ATTACHMENT D Total Budget FY 2013 FY 2013 FY 2013 FY 2013 FY 2013 Estimated Project Project Project From Available Expenditures Labor Contingencies Encumbrances Remaining Percent Project Completion Number Title Category Inception Budget Adjustments Balance Complete Status Date Comments FY 2013 MID-YEAR CAPITAL IMPROVEMENT PROGRAM PROJECTS STATUS GENERAL FUND PLANNING AND COMMUNITY ENVIRONMENT DEPARTMENT PL-06002 Comprehensive Parking Signage Plan Non- Infrastructure Management Plan $475,000 $0 $1,224 $0 $0 $0 ($1,224)100% Complete Complete The installation of color zone signage was completed in 2008. Current projects include hiring of a new Parking Manager to identify parking improvement strategies. This CIP will be closed eventually and remaining funds transferred to a new CIP entitled Transportation and Parking Improvements. PL-11002 California Avenue Transit Hub Corridor Streets and Sidewalks $1,725,200 $1,709,147 $27,472 $0 $0 $272,528 $1,409,147 18% Design Oct 14 Project delayed due to litigation. Design restarted in Summer 2012. Anticipated construction start date: Sept 2013 thru Summer 2014. PL-11003 Palo Alto Traffic Signal Central System Streets and Sidewalks $400,000 $364,472 $0 $0 $0 $0 $364,472 9% Design Dec 13 Staff is in the process of completing Caltrans Local Assistance documents to authorize expenditures for grant reimbursement. Authorization is anticipated by March 2013. Construction anticipated in the Summ 2013. KEEP OPEN. 10 of 35 ATTACHMENT D Total Budget FY 2013 FY 2013 FY 2013 FY 2013 FY 2013 Estimated Project Project Project From Available Expenditures Labor Contingencies Encumbrances Remaining Percent Project Completion Number Title Category Inception Budget Adjustments Balance Complete Status Date Comments FY 2013 MID-YEAR CAPITAL IMPROVEMENT PROGRAM PROJECTS STATUS GENERAL FUND PLANNING AND COMMUNITY ENVIRONMENT DEPARTMENT PL-12000 Transportation and Parking Improvements Streets and Sidewalks $908,998 $908,998 $148,391 $0 $0 $373,797 $386,810 57% Ongoing N/A This CIP funds miscellaneous parking programs, studies and transportation projects. KEEP OPEN. MULTI-YEAR PROJECTS 11 of 35 ATTACHMENT D Budget FY 2013 FY 2013 Estimated Project Project Project From Available FY 2013 Labor FY 2013 FY 2013 Remaining Percent Project Completion Number Title Category Inception Budget Expenditures Adjustments Contingencies Encumbrances Balance Complete Status Date Comments PD-07000 Mobile Command Vehicle Miscellaneous $4,422 $4,422 $0 $0 $0 $0 $4,422 0% Completed FY 2013 MID-YEAR CAPITAL IMPROVEMENT PROGRAM PROJECTS STATUS GENERAL FUND POLICE DEPARTMENT MINOR PROJECTS 12 of 35 ATTACHMENT D Total Budget FY 2013 FY 2013 FY 2013 FY 2013 FY 2013 Estimated Project Project Project From Available Expenditures Labor Contingencies Encumbrances Remaining Percent Project Completion Number Title Category Inception Budget Adjustments Balance Complete Status Date Comments PE-06005 University Avenue Gateway Landscaping Improvements Parks and Open Space $240,480 $4,128 $0 $0 $0 $0 $4,128 100% Complete Mar 12 Remaining balance to be used on irrigation repairs. Project completed as of March 2012. All work has been completed as of March 2012. PE-07005 California Avenue Improvements Parks and Open Space $0 $0 $0 $0 $0 $0 $0 100% Complete Dec 11 Planning is the lead division in the designing phase with separate project number. Technically closed. PE-08004 Lytton Plaza Renovation Parks and Open Space $793,142 $32,086 $25 $0 $0 $10,960 $21,101 97% Construction Dec 12 CSD is still working with the Friends of Lytton Plaza on open items. (Upgrade on site FFE) PE-09002 Greer Park Phase IV Parks and Open Space $2,032,251 $83,890 $2,669 $0 $0 $9,006 $72,215 96% Construction Dec 12 Waiting for the final as-built drawing and resolution of construction defects. PE-11011 Highway 101 Pedestrian/Bicycle Overcrossing Streets and Sidewalks $499,806 $266,036 $67,721 $0 $0 $195,633 $2,682 10% Pre-Design Sept 13 The feasibility study completed in November 2011. Preliminary Engineering and Environmental assessment started in June 2012. Council directed staff to explore design competition. PE-12002 Tree Wells - University Avenue Irrigation Miscellaneous $150,000 $150,000 $6,301 $0 $0 $0 $143,699 0% Construction Apr 13 Currently in construction bidding process. PE-12003 Rinconada Park Long Range Plan & Design Parks and Open Space $150,000 $91,757 $81,317 $0 $0 $19,561 ($9,121)80% Design Jan 13 Project is in design phase. PE-12004 Municipal Services Center Facilities Study Miscellaneous $249,780 $249,780 $0 $0 $0 $0 $249,780 0% Pre-Design Dec 13 Draft request for proposal is in review. PE-12009 Alma Guardrail Miscellaneous $115,889 $110,000 $29,431 $0 $0 $1,386 $79,183 100% Construction Dec 12 Project has been completed, warranty period PE-12013 Magical Bridge Playground Parks and Open Space $1,300,000 $1,235,810 $39,185 $0 $0 $159,238 $1,037,387 85% Design Jul 13 Design and constrution document is expected to be completed by Summer 2013 pending Friends of the Magical Bridge fund raising effort. PE-12017 City Hall First Floor Renovations Buildings and Facilities $1,362,759 $1,362,759 $30,098 $0 $0 $136,334 $1,196,327 15% Design Dec 13 Staff will return to Council for approval of contract amendment to reflect expended project scope. PE-13008 Bowden Park Parks and Open Space $157,000 $157,000 $0 $0 $0 $0 $157,000 10% Design Nov 13 Community outreach need to occur and construction bidding of project is expected Summer of 2013. PE-13010 Greer Park Renovations Parks and Open Space $300,000 $300,000 $0 $0 $0 $0 $300,000 10% Design Nov 13 Community outreach need to occur and construction bidding of project is expected Summer of 2013. PE-13016 El Camino Park Expanded Parking Lot and New Restroom Parks and Open Space $960,000 $960,000 $3,173 $0 $0 $0 $956,827 60% Design Apr 14 Waiting for the completion of the Emergency Water Supply well, project is currently in the design phase CSD is leading the effort. PE-13020 Byxbee Park Trails Parks and Open Space $250,000 $250,000 $5,704 $0 $0 $0 $244,296 15% Design Jun 14 RFP is being routed for a design consultant. FY 2013 MID-YEAR CAPITAL IMPROVEMENT PROGRAM PROJECTS STATUS GENERAL FUND PUBLIC WORKS DEPARTMENT MINOR PROJECTS 13 of 35 ATTACHMENT D Total Budget FY 2013 FY 2013 FY 2013 FY 2013 FY 2013 Estimated Project Project Project From Available Expenditures Labor Contingencies Encumbrances Remaining Percent Project Completion Number Title Category Inception Budget Adjustments Balance Complete Status Date Comments FY 2013 MID-YEAR CAPITAL IMPROVEMENT PROGRAM PROJECTS STATUS GENERAL FUND PUBLIC WORKS DEPARTMENT PF-04000 Security System Improvements Buildings and Facilities $275,000 $59,768 $0 $0 $0 $0 $59,768 78% Construction Jun 13 Additional security for MSC to be installed. PF-06004 Cubberley Restroom Renovation Buildings and Facilities $327,422 $297,728 $3,809 $0 $0 $1 $293,918 15% Pre-Design Dec 13 Finalizing Design PF-11001 Council Chambers Carpet Replacement Buildings and Facilities $80,000 $80,000 $0 $0 $0 $0 $80,000 0% N/A N/A This project scope has been included in a new proposed project for Council Chamber Renovation in FY 2014. Project will be closed. PF-13001 Lucie Stern Mechanical System Upgrade Buildings and Facilities $100,000 $100,000 $0 $0 $0 $0 $100,000 0% Design Dec 13 RFP has been issued for a consultant to perform the project design. PF-13003 Parks Master Plan Parks and Open Space $350,000 $350,000 $5,617 $0 $0 $0 $344,383 15% Pre-Design Mar 14 RFP is being routed for a design consultant. PF-07003 Children's Theatre Fire/Life Safety Upgrade Buildings and Facilities $278,549 $231,580 $0 $0 $0 $0 $231,580 17% Design Jun 13 Project scope to be combined with more comprehensive CIP, PF-09000. PF-07011 Roth Building Maintenance Buildings and Facilities $424,395 $258,576 $0 $0 $0 $0 $258,576 39% Ongoing Jun 13 All initial work completed. Ongoing work is for maintenance and repairs. PF-10002 Lot "J" Cowper/Webster Structural Repairs Buildings and Facilities $582,299 $510,685 $447,948 $0 $0 $0 $62,737 89% Complete Nov 12 Project completed in November of 2012 PF-12001 Parks and PWD Trees Work Space Improvements Parks and Open Space $375,000 $375,000 $746 $0 $0 $0 $374,254 15% Design Jun 13 Design completed. Work will be completed by June 2013 pending staffing resources. PF-12004 Citywide Backflow Preventer Installations Miscellaneous $250,000 $250,000 $95,643 $0 $5,557 $148,800 40% Complete Nov 12 Project completed in November of 2012 PO-10002 Downtown Tree Grates Miscellaneous $300,000 $261,985 $0 $0 $0 $4,000 $257,985 14% Ongoing Dec 15 Ongoing. Project is being done in conjunction with PO-89003 and tree replacement schedule. PO-12000 Wilkie Way Bridge Deck Replacement Streets and Sidewalks $50,000 $50,000 $0 $0 $0 $0 $50,000 0% Design Jun 13 Replacement deck materials are being evaluated for suitability. PO-12001 Curb and Gutter Repairs Streets and Sidewalks $598,149 $598,149 $129,118 $0 $0 $396,574 $72,457 88% Construction Nov 13 Ongoing. This is an annual project being done in conjunction with PO-89003. PO-12002 LATP Site Development Preparation & Security Miscellaneous $250,000 $241,364 $0 $0 $0 $85,001 $156,363 37% Design Aug 13 2 Proposals received for demo, remediation, and wetland permitting work. Consultant contract to be awarded in February 2013. PO-12003 Foothills Fire Management Streets and Sidewalks $200,000 $200,000 $19,884 $0 $0 $7,983 $172,133 14% Ongoing Jun 17 Clearing delayed. Scope for contract being determined. PE-00104 San Antonio Road Median Improvements Streets and Sidewalks $2,195,007 $404,935 $221,915 $0 $0 $163,855 $19,165 99% Construction Jan 13 Project is currently in Phase II: Tree removal has been completed, replacement of trees will be completed upon completion of the Overlay project which is expected to be completed by January 2013. PE-05010 College Terrace Library Improvements Buildings and Facilities $3,723,874 $213,162 $4,600 $0 $0 $3 $208,559 100% Complete Jun 12 Project completed June 2012 PE-06007 Park Restroom Installation Parks and Open Space $927,029 $741,316 $44,083 $0 $0 $206,115 $491,118 15% Construction May 13 Construction is underway (building is being fabricated) and is expected to be completed in May of 2013. MINOR PROJECTS MULTI-YEAR PROJECTS 14 of 35 ATTACHMENT D Total Budget FY 2013 FY 2013 FY 2013 FY 2013 FY 2013 Estimated Project Project Project From Available Expenditures Labor Contingencies Encumbrances Remaining Percent Project Completion Number Title Category Inception Budget Adjustments Balance Complete Status Date Comments FY 2013 MID-YEAR CAPITAL IMPROVEMENT PROGRAM PROJECTS STATUS GENERAL FUND PUBLIC WORKS DEPARTMENT PE-09003 City Facility Parking Lot Maintenance Buildings and Facilities $478,902 $478,902 $0 $0 $0 $0 $478,902 0% Ongoing Jun 13 This is an annual project. Funding will be used for repaving the Cubberley Parking lot has been postponed, funds will be used for Mitchell Park Library and Sailing Station parking lots. PE-09005 Downtown Library Improvements Buildings and Facilities $5,524,772 $1,071,284 $13,129 $0 $0 $59,332 $998,823 82% post-construction Dec 12 Construction completed in FY 2012, project should remain open until warranty period is over December 2012. PE-09006 Mitchell Park Library & Community Center (New Construction) Buildings and Facilities $49,743,741 $21,822,790 $5,358,481 $0 $0 $10,990,043 $5,474,266 75% Construction Jun 13 Construction began September 2010. Project is 75% complete. PE-09010 Library & Community Center Temporary Facilities Buildings and Facilities $792,770 $135,262 $199 $0 $0 $25,772 $109,291 86% Construction Apr 13 After final invoices are received, project should remain open until warranty period is over. Demobilization when Mitchell Library has opened. PE-10002 Ventura Community Center and Park Buildings and Facilities $371,913 $356,881 $10,290 $0 $0 $346,000 $591 0% Construction Oct 13 Construction bidding process is underway awating for Council approval. PE-11000 Main Library New Construction and Improvements Buildings and Facilities $19,169,609 $19,169,609 $267,266 $0 $0 $1,072,814 $17,829,529 7% Design Dec 14 Plans are currently being reviewed for building permit. Construction expected to begin June 2013. PE-11012 Temporary Main Library Buildings and Facilities $500,000 $403,565 $1,715 $0 $0 $321,892 $79,958 84% Construction May 13 Conversion of Art Center auditorium to begin April 2013. PE-12011 Newell Road Bridge / San Francisquito Creek Bridge Replacement Streets and Sidewalks $536,996 $536,996 $137,972 $0 $0 $401,140 ($2,116)30% Design Mar 14 Based on public input, staff will modified the contract to include the EIR to analysis all project alternatives. Staff will return to Council for approval of the contract amendment to perform the EIR. PE-12012 Eleanor Pardee Park Improvements Parks and Open Space $674,000 $673,680 $4,901 $0 $0 $0 $668,779 0% Construction Mar 13 Construction phase is expected in winter 2012/2013 PE-13005 City Hall/King Plaza Landscape Parks and Open Space $50,000 $50,000 $307 $0 $0 $0 $49,693 10% Design Dec 13 Currently in design phase, public outreach is expected to take place in spring of 2013. PE-13007 El Camino Park Dog Park Parks and Open Space $260,000 $260,000 $169 $0 $0 $0 $259,831 0% Design Apr 14 Waiting for the completion of the Emergency Water Supply well, project is currently in the design phase CSD is leading the effort. PE-13011 Charleston/Arastradero Corridor Project Streets and Sidewalks $250,000 $250,000 $2,393 $0 $0 $0 $247,607 50% Pre-Design Feb 13 RFP is expected to go out February 2013 for a design consultatnt PE-13022 University Avenue Pedestrian/Bicycle Underpass Rehabilatation Streets and Sidewalks $185,000 $185,000 $151,321 $0 $0 $43,985 ($10,306)100% Construction Dec 12 Construction has been completed, under warranty period for 1 year. PE-98020 Police Building Project Buildings and Facilities $4,291,838 $94,919 $158 $0 $0 $907 $93,854 98% Design TBD Project currently on hold. PF-01002 Civic Center Infrastructure Improvements Buildings and Facilities $15,970,506 $739,072 $200,107 $0 $0 $281,315 $257,650 98% post-construction Mar 13 Civic Center Improvements are in the punch-list stage. PF-01003 Building Systems Improvement Buildings and Facilities $234,522 $234,522 $27,061 $0 $0 $1 $207,460 30% Construction Jun 13 Ongoing. This is an annual project that improves electrical, mechanical and strucal sytems to buildings. PF-05002 Municipal Service Center Renovation Buildings and Facilities $873,251 $681,764 $0 $0 $0 $0 $681,764 22% Design Jun 14 Project on hold per City Manager. MULTI-YEAR PROJECTS 15 of 35 ATTACHMENT D Total Budget FY 2013 FY 2013 FY 2013 FY 2013 FY 2013 Estimated Project Project Project From Available Expenditures Labor Contingencies Encumbrances Remaining Percent Project Completion Number Title Category Inception Budget Adjustments Balance Complete Status Date Comments FY 2013 MID-YEAR CAPITAL IMPROVEMENT PROGRAM PROJECTS STATUS GENERAL FUND PUBLIC WORKS DEPARTMENT PF-05003 Foothills Park Interpretive Center Improvements Buildings and Facilities $342,289 $84,708 $0 $0 $0 $0 $84,708 75% Construction Jun 13 HVAC, electrical, and lighting efficiency remaining. PF-07000 Art Center Electrical & Mechanical Upgrades Buildings and Facilities $8,145,197 $2,799,727 $2,014,007 $0 $0 $589,037 $196,683 100% post-construction Dec 12 1 year warranty period. PF-09000 Children's Theater Improvements Buildings and Facilities $340,000 $340,000 $1,357 $0 $0 $410,001 ($71,358)0% Design Dec 13 RFP has been issued for a consultant to perform the project design. PO-11000 Sign Reflectivity Upgrade Streets and Sidewalks $192,808 $192,808 $111,588 $0 $0 $31,220 $50,000 74% Design Apr 13 Sign assessment field data is being processed for inclusion in GIS PO-11001 Thermoplastic Lane Marking & Striping Streets and Sidewalks $350,000 $242,403 $0 $0 $0 $82,098 $160,305 54% Ongoing Jun 17 On-going annual contract in conjunction with PE- 86070 (Streets Maintenance Program Projects). 16 of 35 ATTACHMENT D FY 2013 MID-YEAR CAPITAL IMPROVEMENT PROGRAM PROJECTS STATUS TECHNOLOGY FUND Total Budget FY 2013 Budget Estimated Project Project Project From Available FY 2013 Labor FY 2013 FY 2013 Remaining Percent Project Completion Comments Number Title Category Inception Budget Expenditures Adjustments Contingencies Encumbrances Balance Complete Status Date TE-01012 IT Disaster Recovery Plan Minor $578,626 $578,337 $1,882 $0 $0 $60,000 $516,455 11% Construction Jun-15 A disaster recovery and business continuity assessment is underway which will determine disaster recovery requirements df di lldiTE-05003 Internet Site Upgrade Minor $240,000 $42,262 $0 $0 $0 $0 $42,262 82% Complete Dec-06 This project was completed in about 2006. Request has been submitted to close CIP & to give back remaining funds. TE-08000 Library Technology Plan Minor $75,000 $0 $0 $0 $0 $0 $0 100% Complete This project is identified as a possible additional funding source for the Telephone System Replacement Project. TE-08003 Fire Radio Communications Equipment Minor $102,000 $0 $0 $0 $0 $0 $0 100% Complete This project is identified as a possible additional funding source for the Telephone System Replacement Project. TE-08004 Fire Mobile Data Computer Minor $250,000 $69,199 $0 $0 $0 $0 $69,199 72% Construction Jun-13 Final phase of project to replace Fire Mobile Data Computer due to new apparatus that has come online. TE-09000 Public Safety Computer-Aided Dispatch Replacement Minor $1,300,000 $1,198,293 $0 $0 $0 $0 $1,198,293 8% Construction Dec-13 Computer Aided Dispatch (CAD) contract signed project implementation in process. Records Management System (RMS) contract still in TE-11002 Police Mobile In- Car Video System Replacement Minor $310,000 $305,412 $0 $0 $0 $0 $305,412 1% Pre-design Jun-13 Pending Request for Information (RFI) responses from vendors TE-11003 Recurring Credit Card Payment Minor $150,000 $150,000 $0 $0 $0 $0 $150,000 0% Cancelled Jun-14 Project is in process of being cancelled with Budget due to high expense and needs to be higher level project for overall payments ttTE-11001 Library Computer System Software Minor $350,000 $499,925 $0 $0 $0 $70,250 $429,675 -23% Pre-design Jun-14 Working with Information Technology Department to create the Request for Information (RFI). INTERNAL SERVICE FUND INFORMATION TECHNOLOGY DEPARTMENT MINOR PROJECTS MINOR PROJECTS 17 of 35 2/26/2013 ATTACHMENT D FY 2013 MID-YEAR CAPITAL IMPROVEMENT PROGRAM PROJECTS STATUS TECHNOLOGY FUND Total Budget FY 2013 Budget Estimated Project Project Project From Available FY 2013 Labor FY 2013 FY 2013 Remaining Percent Project Completion Comments Number Title Category Inception Budget Expenditures Adjustments Contingencies Encumbrances Balance Complete Status Date INTERNAL SERVICE FUND INFORMATION TECHNOLOGY DEPARTMENT TE-95016 Permit Information Tracking System Multi-Year $980,050 $176,648 $0 $0 $0 $740 $175,908 82% Construction Jun-15 Live, remaining funds to be utilized as enhancements to the system. TE-02013 Institutional Network (I-Net) Multi-Year $1,000,000 $575,887 $0 $0 $0 $0 $575,887 42% Construction Jun-15 Remaining funds to be utilized to purchase equipment for live broadcasts from community centers. TE-07006 SAP Continuous Improvement Project Multi-Year $8,898,680 $95,694 $0 $0 $0 $0 $95,694 99% Construction Jun-15 Roadmapped enhancement efforts funded by this CIP are on hold pending results from an Enterprise Resource Planning (ERP) system evaluation slated fTE-99010 Acquisition of New Computers Multi-Year $362,350 $259,815 $146,741 $0 $0 $0 $113,074 69% Construction Jun-15 This is an ongoing project for the acquisition of new computers. TE-00010 Telephone System Replacement Multi-Year $2,646,587 $2,544,583 $1,186,836 $0 $0 $559,887 $797,860 70% Construction Dec-13 Phase 1 complete: Upgrade of high-speed network and implementation of new telephone system. Phase 2: scheduled for D 2013TE-13001 Interactive Voice Response System Multi-Year $200,000 $200,000 $0 $0 $0 $0 $200,000 0% Pre-design Feb-14 Currently in kick-off stage. The new phone system deployment is a dependency of starting this project, which has recently been dl dTE-13002 ESS/MSS Enhancements Multi-Year $150,000 $150,000 $0 $0 $0 $0 $150,000 0% On hold Jun-13 This project is dependent on another project to us to bring the system up to a higher enhancement pack, which has bldhldbthSAPTE-13003 SAP Refuse Billing Improvements Multi-Year $250,000 $250,000 $0 $0 $0 $0 $250,000 0% On hold the start of the project is dependent upon the completion of a GreenWaste system upgrade, which is scheduled to be ltdi FY14TE-13004 Infrastructure Management System Multi-Year $300,000 $300,000 $0 $0 $0 $0 $300,000 0% Pre-design Dec-13 Currently in the discovery phase MULTI-YEAR PROJECTS 18 of 35 2/26/2013 ATTACHMENT D FY 2013 MID-YEAR CAPITAL IMPROVEMENT PROGRAM PROJECTS STATUS TECHNOLOGY FUND Total Budget FY 2013 Budget Estimated Project Project Project From Available FY 2013 Labor FY 2013 FY 2013 Remaining Percent Project Completion Comments Number Title Category Inception Budget Expenditures Adjustments Contingencies Encumbrances Balance Complete Status Date INTERNAL SERVICE FUND INFORMATION TECHNOLOGY DEPARTMENT TE-02015 Citywide GIS Data, Infrastructure and Applications Multi-Year $2,228,954 $208,911 $127,951 $0 $0 $171,658 ($90,698) 104% Complete Jun-14 This is effort is complete TE-05000 Radio Infrastructure Replacement Multi-Year $2,565,980 $1,825,895 $0 $0 $0 $67,454 $1,758,441 31% Pre-design Dec 16 We continue to fund infrastructure improvements and other major upgrades to our existing UHF and VHF radio TE-06001 Library Radio Frequency Identification (RFID) Implementation Multi-Year $595,000 $607,860 $16,796 $0 $0 $23,878 $567,186 5% Construction Jun-14 Start date of the project is not until end of July as it is dependent upon the New Technology for Mitchell Park Library project. TE-07000 Enterprise Application Infrastructure Upgrade Multi-Year $2,297,000 $549,500 $33,600 $0 $0 $1,408 $514,492 78% Construction Dec-13 Roadmapped enhancement efforts funded by this CIP are on hold pending results from an Enterprise Resource Planning (ERP) system evaluation slated for FY14 TE-08002 Electric Patient Care Report Multi-Year $85,000 $0 $0 $0 $0 $0 $0 100% Complete TE-10000 Collections Software Multi-Year $111,800 $29,800 $6,825 $0 $0 $20,075 $2,900 97% Complete Jun-13 Live, remaining funds to be used for maintenance of system. MULTI-YEAR PROJECTS 19 of 35 2/26/2013 ATTACHMENT D FY 2013 MID-YEAR CAPITAL IMPROVEMENT PROGRAM PROJECTS STATUS TECHNOLOGY FUND Total Budget FY 2013 Budget Estimated Project Project Project From Available FY 2013 Labor FY 2013 FY 2013 Remaining Percent Project Completion Comments Number Title Category Inception Budget Expenditures Adjustments Contingencies Encumbrances Balance Complete Status Date INTERNAL SERVICE FUND INFORMATION TECHNOLOGY DEPARTMENT TE-10001 Utility Customer Billing System Multi-Year $500,000 $741,526 $75,438 $0 $0 $4,588 $661,500 -32% Pre-design Dec-15 There will be a sub-project to this CIP for My Utilities Account enhancements which will start in March & end around August of 2013TE-11004 Utility Bill Information Enhancements Multi-Year $750,000 $0 $0 $0 $0 $0 $0 100% Pre-design Jul 12 Currently developing requirements. TE-11005 Implementation of Restructured Tiered Rates on Bills Multi-Year $200,000 $200,000 $0 $0 $0 $10,000 $190,000 5% Construction Dec-13 There is a pilot project commencing and some changes to the invoice may be required based on customer feedback. TE-12001 Development Center Blueprint Multi-Year $935,600 $1,728,771 $16,967 $0 $0 $66,565 $1,645,239 -76% Construction Jul-15 Contract started with vendor for phase 1 of project to upgrade Accela system and training on various aspects of the Accela product. $28,412,627 $13,288,318 $1,613,036 0 0 $1,056,503 $10,618,779 MULTI-YEAR PROJECTS 20 of 35 2/26/2013 ATTACHMENT D Total Budget FY 2013 Budget Estimated Project Project Project From Available FY 2013 Labor FY 2013 FY 2013 Remaining Percent Project Completion Number Title Category Inception Budget Expenditures Adjustments* Contingencies Encumbrances Balance Complete Status Date Comments NOTES VR-01001 MSC Fuel Storage Tank /Svc Island Replacement Minor $2,609,597 $79,545 $11,942 $0 $0 $65,000 $2,603 100% Ongoing Jun 13 New scope has been added to project to add electrical hookup and generator to site. VR-06801 Replace City-Wide Fuel Transaction and Inventory Management System Minor $285,000 $109,838 $0 $0 $0 $59,375 $50,463 82% Ongoing Jun 13 System has been installed at one site; upgrade of software is being negotiated. Upgrade of software will need to be completed before adding other sites. VR-07001 Automated Motor Pool Reservation and Vehicle Key Management System Minor $125,000 $34,465 $28 $0 $0 $26,334 $8,103 94% Ongoing Jun 13 All hardware at MSC, Elwell and Civic Center in place. Next step involves assigning vehicles and training of employees on system. VR-11000 Vehicle Replacement Minor $1,578,325 $807,246 $78,245 $0 $0 $401,324 $327,677 79% Ongoing Mar 13 Awaiting delivery and outfitting of a street sweeper. VR-12001 In-Ground Vehicle Lift Minor $450,000 $400,000 $316,475 $0 $0 $33,359 $50,166 89% Ongoing Mar 13 All work is complete. Next step is to see if water remains out of lifts and payment of services. VR-13000 Vehicle Replacement Minor $875,000 $875,000 $0 $0 $0 $540,423 $334,577 62% Ongoing Sept 13 Going to Council for approval on purchases and requested additional money. FY 2013 MID-YEAR CAPITAL IMPROVEMENT PROGRAM PROJECTS STATUS INTERNAL SERVICE FUND VEHICLE REPLACEMENT AND MAINTENANCE FUND PUBLIC WORKS DEPARTMENT MINOR PROJECTS 21 of 35 2/26/2013 ATTACHMENT D Total Budget FY 2013 Budget Estimated Project Project Project From Available FY 2013 Labor FY 2013 FY 2013 Remaining Percent Project Completion Number Title Category Inception Budget Expenditures Adjustments* Contingencies Encumbrances Balance Complete Status Date Comments NOTES FY 2013 MID-YEAR CAPITAL IMPROVEMENT PROGRAM PROJECTS STATUS INTERNAL SERVICE FUND VEHICLE REPLACEMENT AND MAINTENANCE FUND PUBLIC WORKS DEPARTMENT VR-04010 Vehicle Maintenance Facility Upgrades Multi-Year $561,733 $262,860 $0 $0 $0 $4 $262,856 53% Ongoing Jun 13 Specifications need to be written for next phase of upgrades. VR-07002 Diesel Truck Engine Emissions Retrofits Multi-Year $846,488 $54,760 $29,415 $0 $0 $1 $25,344 97% Ongoing Dec 15 Next set of Diesel Particulate Filters (DPF) not needed until 2015. BAO will be needed to cover difference in bid amount. VR-92006 Fuel Tank Storage/Upgrade Multi-Year $260,378 $102,561 $68,070 $0 $0 $31,839 $2,652 99% Design Mar 13 Card reader to be installed and punch list item. Labor adj $7,591,521 $2,726,275 $504,175 $0 $0 $1,157,659 $1,064,441 MULTI-YEAR PROJECTS 22 of 35 2/26/2013 ATTACHMENT D Total Budget FY 2013 Budget Estimated Project Project Project From Available FY 2013 FY 2013 FY 2013 Remaining Percent Project Completion Number Title Category Inception Budget Expenditures Contingencies Encumbrances Balance Complete Status Date Comments EL-04010 Foothills System Rebuild Minor $850,064 $102,802 $1,382 $0 $0 $101,420 88% Construction Oct 13 Portions of this project have been completed. The sections crossing the Palo Alto Country Club and Foothills park still remain. EL-09004 W. Charleston/Wilkie Way to South City Limit 4/12 kV Conversion Minor $1,062,466 $635,000 $0 $0 $0 $635,000 40% Construction Jun 13 Construction is 95% complete. Remaining portion is delayed until the El Camino Real rebuild project is completed as they are connected. EL-10008 Advanced Metering Infrastructure System Minor $310,943 $251,401 $8,565 $0 $104,517 $138,319 56% Design Ongoing Phase 2 - implementation and planning for pilot projects is in progress. EL-11001 Torreya Court Rebuild Minor $101,683 $62,412 $22,754 $0 $42,988 ($3,330) 103% Complete Field construction is complete. This project was combined with similar projects into a single bid package in the hopes of obtaining lower pricing for all projects. The contract encumbrances were incorrectly allocated to the various projects which resulted in this project having a negative balance. Steps have been taken to correct the encumbrance against this project but are not reflected in this report. EL-11004 Hewlett Subdivision Rebuild Los Trancos Minor $803,766 $574,540 $294,996 $0 $53,044 $226,500 72% Construction Apr 13 Final phase (section through Foothills Park) of this project is in construction. EL-11006 Rebuild UG District 18 Minor $352,846 $302,838 $52,048 $0 $102,137 $148,653 58% Design Dec 13 Design work in progress. EL-11016 Electric Vehicle Charging Infrastructure Minor $135,083 $117,387 $0 $0 $0 $117,387 13% Complete EL-12002 Hanover 22 - Transformer Replacement Minor $1,200,000 $1,187,373 $44,441 $0 $1,112,849 $30,083 97% Construction Jun 13 Construction of containment and transformer pad to start in Feb 13. Transformer to be delivered Apr 13. MULTI-YEAR PROJECTS EL-02010 SCADA System Upgrades Multi-Year $962,213 $293,023 $0 $0 $0 $293,023 70% Design and Construction Ongoing This project involves upgrading the Supervisory Control & Data Acquisitions (SCADA) Portal and Master computer software and operating systems . FY 2013 MID-YEAR CAPITAL IMPROVEMENT PROGRAM PROJECTS STATUSENTERPRISE FUND ELECTRIC FUND UTILITIES DEPARTMENT MINOR PROJECTS 23 of 35 2/26/2013 ATTACHMENT D Total Budget FY 2013 Budget Estimated Project Project Project From Available FY 2013 FY 2013 FY 2013 Remaining Percent Project Completion Number Title Category Inception Budget Expenditures Contingencies Encumbrances Balance Complete Status Date Comments FY 2013 MID-YEAR CAPITAL IMPROVEMENT PROGRAM PROJECTS STATUSENTERPRISE FUND ELECTRIC FUND UTILITIES DEPARTMENT EL-04012 Utility Site Security Improvements Multi-Year $1,117,696 $611,980 $101,622 $0 $47,192 $463,166 50% Design & Construction Ongoing Design work in progress on Quarry, Hanover, Hansen Way and Park Blvd. substations. Staff will be going out to bid in Apr 13. EL-05000 El Camino Underground Rebuild Multi-Year $1,924,196 $447,112 $4,169 $0 $0 $442,943 77% Design and Construction Jun 13 Preparation of construction estimate is in progress for the remaining areas of this project. EL-11008 Rebuild UG District 19 Multi-Year $161,156 $106,185 $1,435 $0 $0 $104,750 35% Design Dec 13 Preparation of construction estimate is in progress. EL-06001 230 KV Electric Intertie Multi-Year $605,437 $169,695 $1,789 $0 $2,450 $165,456 73% Pre-design Ongoing Stanford Utilities has expressed interest in Stanford Linear Accelerator Center (SLAC) - Quarry Road Substation 60kV tie. Preliminary power flow and feasibility study complete, interconnection at Quarry Substation appears feasible. Working with Stanford and DOE to encourage SLAC participation in this project. EL-06002 Underground District 45 Multi-Year $3,617,473 $209,085 $39,655 $0 $0 $169,430 60% Construction Nov 13 Electric work and a majority of customer connections completed. Awaiting completion of AT&T work and pole removal. EL-08000 E. Charleston 4/12kV Conversion Multi-Year $665,324 $373,164 $33,363 $0 $237,186 $102,615 85% Design Dec 13 Construction of portions of this project in progress. The reamining work is to be re-bid due to scope change. EL-09000 Middlefield Underground Rebuild Multi-Year $627,718 $540,824 $265,940 $0 $152,282 $122,602 80% Design Dec 13 Construction of portions of this project in progress. The reamining work is to be re-bid due to scope change. EL-09002 Middlefield/Colorado 4/12 kV Conversion Multi-Year $323,653 $40,078 $0 $0 $0 $40,078 88% Complete Construction completed. EL-09003 Rebuild UG District 17 (Downtown) Multi-Year $1,229,843 $707,515 $2,764 $0 $0 $704,751 60% Construction Jun 13 Line construction begins Feb 13. MULTI-YEAR PROJECTS 24 of 35 2/26/2013 ATTACHMENT D Total Budget FY 2013 Budget Estimated Project Project Project From Available FY 2013 FY 2013 FY 2013 Remaining Percent Project Completion Number Title Category Inception Budget Expenditures Contingencies Encumbrances Balance Complete Status Date Comments FY 2013 MID-YEAR CAPITAL IMPROVEMENT PROGRAM PROJECTS STATUSENTERPRISE FUND ELECTRIC FUND UTILITIES DEPARTMENT EL-10006 Rebuild UG District 24 Multi-Year $1,349,038 $973,673 $4,934 $0 $272,117 $696,622 48% Design Dec 13 Preparation of construction estimate in progress. EL-13006 Sand Hill/Quarry 12kV Tie Multi-Year $50,000 $50,000 $0 $0 $0 $50,000 0% Design TBD Design in progress. EL-13007 Underground distribution System Security Multi-Year $300,000 $300,000 $0 $0 $0 $300,000 0% Pre-design TBD No work started due to limited staff availability. EL-13008 Upgrade electric Estimating System Multi-Year $150,000 $150,000 $0 $0 $0 $150,000 0% Design TBD Working with contractor on scope of work to complete this project. Staff may need to go back out to bid. EL-10009 Street Light System Conversion Project Multi-Year $3,406,563 $2,888,335 $714,172 $0 $370,996 $1,803,167 47% Ongoing Jul 13 Phase II completed. Phase III is going to bid Feb 13. The last phase, Phase IV is planned for completion in FY 2014. EL-11003 Rebuild UG District 15 Multi-Year $481,054 $469,461 $276 $0 $0 $469,185 2% Pre-design Dec 13 No work started due to limited staff availability. EL-11007 Rebuild Greenhouse Condo Area Multi-Year $508,047 $377,289 $21,945 $0 $47,312 $308,032 39% Design/ Construction Dec 13 Project estimate being prepared for final phase of this project. EL-11010 UG District 47 - Middlefield, Homer Avenue, Webster Street and Addison Avenue Multi-Year $1,852,748 $1,822,520 $14,120 $0 $0 $1,808,400 2% Design Dec 13 Public hearings completed. Project estimate preparation in progress. EL-11014 Smart Grid Technology Installation Multi-Year $501,328 $486,715 $17,903 $0 $450,705 $18,107 96% Design Jan 17 Two pilot projects to be implemented. Bids have been received and reviewed and will be awarded after Council approval. EL-11015 Reconductor 60kV Overhead Transmission System with ACCR conductor Multi-Year $3,747,943 $3,531,707 $1,564,218 $53,952 $697,313 $1,216,224 68% Construction Dec 13 Presenting report to Council in Mar 13 on the bids for completion of the work from Quarry Substation to Alma Blvd. MULTI-YEAR PROJECTS 25 of 35 2/26/2013 ATTACHMENT D Total Budget FY 2013 Budget Estimated Project Project Project From Available FY 2013 FY 2013 FY 2013 Remaining Percent Project Completion Number Title Category Inception Budget Expenditures Contingencies Encumbrances Balance Complete Status Date Comments FY 2013 MID-YEAR CAPITAL IMPROVEMENT PROGRAM PROJECTS STATUSENTERPRISE FUND ELECTRIC FUND UTILITIES DEPARTMENT EL-12001 UG District 46 - Charleston/El Camino Real Multi-Year $153,954 $99,883 $0 $0 $0 $99,883 35% Pre-design Jun 14 No work started due to limited staff availability. EL-12003 Hopkins Substation Rebuild Multi-Year $250,000 $250,000 $0 $0 $0 $250,000 0% Pre-design Jun 14 Project on hold as design alternatives are being developed and considered. EL-13004 Hansen Way/Hanover 12kV Ties Multi-Year $75,000 $75,000 $0 $0 $0 $75,000 0% Pre-design Jun 14 Project on hold as design alternatives are being developed and considered. EL-13005 Colorado 20/21- Transformers Replacements Multi-Year $100,000 $100,000 $0 $0 $0 $100,000 0% Pre-design Jun 14 Project on hold as design alternatives are being developed and considered. 26 of 35 2/26/2013 ATTACHMENT DFY 2013 MID-YEAR CAPITAL IMPROVEMENT PROGRAM PROJECTS STATUS Total Budget FY 2013 Budget Estimated Project Project Project From Available FY 2013 FY 2013 FY 2013 Remaining Percent Project Completion Number Title Category Inception Budget Expenditures Contingencies Encumbrances Balance Complete Status Date Comments GS-08000 Gas Station 2 Rebuild Minor $207,007 $99,752 $39,073 $0 $57,095 $3,584 98% Complete GS-09000 Gas Station 1 Rebuild Minor $201,000 $96,359 $39,073 $0 $57,094 $192 75% Construction Mar 13 Station is installed and activated in late Dec 12 (one run of two). The second run will be activated after SCADA conduit and pressure transmitters are installed by Operations and SCADA is activated expected to be completed by Feb 13. Casey Construction needs to install concrete walk by Mar 13. GS-10000 Gas Station 3 Rebuild Minor $207,007 $100,461 $40,050 $0 $58,522 $1,889 99% Design Oct 13 Design has been approved and skid is being assembled at Dresser facilities. Connection plan design (draft) sent to Operations for review. Work at the station is expected in mid Apr 13. Completion of work expected by Oct 13. GS-11001 Gas Station 4 Rebuild Minor $337,000 $165,264 $64,608 $0 $94,405 $6,251 98% Construction Jan 13 ENTERPRISE FUND GAS FUND UTILITIES DEPARTMENT MINOR PROJECTS 27 of 35 2/26/2013 ATTACHMENT DFY 2013 MID-YEAR CAPITAL IMPROVEMENT PROGRAM PROJECTS STATUS Total Budget FY 2013 Budget Estimated Project Project Project From Available FY 2013 FY 2013 FY 2013 Remaining Percent Project Completion Number Title Category Inception Budget Expenditures Contingencies Encumbrances Balance Complete Status Date Comments ENTERPRISE FUND GAS FUND UTILITIES DEPARTMENT GS-01019 Global Positioning System Multi-Year $381,062 $82,448 $0 $0 $2,810 $79,638 79% Construction Jun 14 Integrating field data into mapping system, defining additional equipment needs. GS-08011 GMR - Project 18 Multi-Year $6,055,359 $2,198,845 $1,407,884 $0 $136,558 $654,403 89% Construction Jan 13 Ongoing construction, project estimated completion in Jan 13. GS-09002 GMR - Project 19 Multi-Year $5,788,297 $5,485,203 $568,197 $0 $4,292,849 $624,157 89% Construction Jan 15 Combined GMR 19B-21. Bid opened and construction will start Feb 13. GS-10001 GMR - Project 20 Multi-Year $6,616,749 $6,586,508 $0 $0 $6,490,000 $96,508 99% Construction Jan 15 Combined GMR 19B-21. Bid opened and construction will start Feb 13. GS-11000 GMR - Project 21 Multi-Year $6,607,951 $6,597,486 $150,750 $0 $5,238,700 $1,208,036 82% Construction Jan 15 Combined GMR 19B-21. Bid opened and construction will start Feb 13. GS-11002 Gas System Improvements Multi-Year $509,370 $332,526 $71,453 $748 $239,768 $20,557 96% TBD Ongoing This project addresses ongoing capital system improvements GS-12001 GMR - Project 22 Multi-Year $468,000 $468,000 $94 $0 $0 $467,906 0% Design Jun 14 Construction funds to be delayed until FY 2014. GS-13002 General Shop Equipment/Tools Multi-Year $50,000 $50,000 $94 $0 $0 $49,906 0% TBD MULTI-YEAR PROJECTS 28 of 35 2/26/2013 ATTACHMENT D Total Budget FY 2013 Budget Estimated Project Project Project From Available FY 2013 FY 2013 FY 2013 Remaining Percent Project Completion Number Title Category Inception Budget Expenditures Contingencies Encumbrances Balance Complete Status Date Comments WS-09000 Seismic Water Tank Valve Minor $4,100,000 $4,074,400 $1,197 $0 $0 $4,073,203 1% Construction Jul 13 Final report completed in Nov 10, Mayfield seismic retrofit 90% completed; Boronda reservoir construction will commence Feb 13 and completed by Jul 13. WS-11001 Vacuum Excavation Equipment Minor $275,000 $275,000 $0 $0 $0 $275,000 0% Pre-Design Jul 13 Working with fleet to create specification and buy off from operational staff. WS-13003 GPS Equipment Upgrade Minor $200,000 $200,000 $0 $0 $0 $200,000 0% Pre-Design Jun 13 Working with Asset Management on group development. WS-13004 Asset Management Mobile Deployment Minor $100,000 $100,000 $0 $0 $0 $100,000 0% Pre-Design Jun 13 Working with group development. WS-13006 Water Meter Shop Renovations Minor $115,000 $115,000 $0 $0 $0 $115,000 0% Design Jun 13 Funding Operations efforts and providing ongoing support. WS-07000 Water Regulation Station Improvements Multi-Year $470,001 $341,036 $5,142 $0 $0 $335,894 29% Design Jul 16 Design to be completed by Jun 13. WS-07001 Water Recycling Facilities Multi-Year $1,100,542 $605,245 $7,484 $0 $210,257 $387,504 65% Pre-Design Jun 16 Preparing Environmental Impact Report (EIR). Construction to be completed in 2016. WS-08001 Water Reservoir Coating Improvements Multi-Year $2,550,491 $2,335,637 $9,832 $0 $0 $2,325,805 9% Design Jul 16 Construction to start Sep 13 on Corte Madera.. FY 2013 MID-YEAR CAPITAL IMPROVEMENT PROGRAM PROJECTS STATUS ENTERPRISE FUND WATER FUND UTILITIES DEPARTMENT MINOR PROJECTS MULTI-YEAR PROJECTS 29 of 35 2/26/2013 ATTACHMENT D Total Budget FY 2013 Budget Estimated Project Project Project From Available FY 2013 FY 2013 FY 2013 Remaining Percent Project Completion Number Title Category Inception Budget Expenditures Contingencies Encumbrances Balance Complete Status Date Comments FY 2013 MID-YEAR CAPITAL IMPROVEMENT PROGRAM PROJECTS STATUS ENTERPRISE FUND WATER FUND UTILITIES DEPARTMENT WS-08002 Emergency Water Supply Project Multi-Year $37,270,524 $17,643,474 $5,972,870 $635,725 $8,057,623 $2,977,256 92% Construction Aug 13 El Camino reservoir construction 55% complete. Mayfield Pump Station construction 80% complete. Wells rehabilitation construction 95% complete. WS-08017 WMR - Project 22 Multi-Year $3,165,781 $141,639 $0 $0 $0 $141,639 96% Complete WS-09001 WMR - Project 23 Multi-Year $3,134,627 $1,993,583 $866,905 $0 $1,018,333 $108,345 97% Construction May 13 Council approved in Apr 12; completed installing 16" 4710 HDPE water main on Alma. 30 of 35 2/26/2013 ATTACHMENT D Total Budget FY 2013 Budget Estimated Project Project Project From Available FY 2013 FY 2013 FY 2013 Remaining Percent Project Completion Number Title Category Inception Budget Expenditures Contingencies Encumbrances Balance Complete Status Date Comments FY 2013 MID-YEAR CAPITAL IMPROVEMENT PROGRAM PROJECTS STATUS ENTERPRISE FUND WATER FUND UTILITIES DEPARTMENT WS-10001 WMR - Project 24 Multi-Year $3,259,205 $3,052,947 $16,136 $0 $2,785,661 $251,150 92% Construction May 13 Council approved in Apr 12; completed installing 16" 4710 HDPE water main on Alma. WS-11000 WMR - Project 25 Multi-Year $3,444,709 $3,436,906 $0 $0 $700,000 $2,736,906 21% Design Sep 14 Awaiting additional resource availability to complete the design combined with WMR-Project 26. WS-11003 Water Distribution System Improvements Multi-Year $494,011 $424,336 $5,275 $0 $5,000 $414,061 16% Ongoing TBD This project addresses ongoing capital distribution system improvements. WS-11004 Water System Supply Improvements Multi-Year $493,995 $430,968 $48,487 $0 $41,258 $341,223 31% Ongoing TBD This project addresses ongoing capital supply system improvements. WS-12001 WMR - Project 26 Multi-Year $305,000 $305,000 $0 $0 $0 $305,000 0% Pre-Design Sep 14 Awaiting additional resource availability to complete the design combined with WMR-Project 25. WS-13002 Fusion and General Equipment/Tools Multi-Year $50,000 $50,000 $0 $0 $0 $50,000 0% Ongoing Jun 13 This project addresses the purchase of PE fusion equipment for Operations to perform their work. MULTI-YEAR PROJECTS 31 of 35 2/26/2013 ATTACHMENT DFY 2013 MID-YEAR CAPITAL IMPROVEMENT PROGRAM PROJECTS STATUS Total Budget FY 2013 Budget Estimated Project Project Project From Available FY 2013 FY 2013 FY 2013 Remaining Percent Project Completion Number Title Category Inception Budget Expenditures Contingencies Encumbrances Balance Complete Status Date Comments WC-11000 WC Reh/Aug. Prj 24 Multi-Year $3,119,500 $3,119,500 $3,397 $0 $183,603 $2,932,500 6% Design Aug 14 This project will also include the WC Reh/Aug Prj 25 and the design effort will start May 13 with construction complete by Aug 14. WC-12001 WC Reh/Aug. Prj 25 Multi-Year $3,212,000 $3,212,000 $0 $0 $0 $3,212,000 0% Design Aug 14 This project will also include the WC Reh/Aug Prj 26 and the design effort will start May 13 with construction complete by Aug 14. WC-13001 WC Rehab/Aug. Prj 26 Multi-Year $310,000 $310,000 $0 $0 $0 $310,000 0% Pre-design Jun 14 WC-13002 Fusion and General Equipment/Tools Multi-Year $50,000 $50,000 $0 $0 $0 $50,000 0% Ongoing TBD This project addresses replacing PE fusion tools needed by WGWW Operations to perform their work. WC-15002 Wastewater System Improvements Multi-Year $348,403 $267,870 $20,265 $0 $1,519 $246,086 29% Ongoing TBD This project addresses on going capital system improvements. MULTI-YEAR PROJECTS ENTERPRISE FUND WASTEWATER COLLECTION FUND UTILITIES DEPARTMENT 32 of 35 2/26/2013 ATTACHMENT D ENTERPRISE FUND REFUSE FUND PUBLIC WORKS DEPARTMENT Total Budget FY 2013 Budget Estimated Project Project Project From Available FY 2013 FY 2013 FY 2013 Remaining Percent Project Completion Number Title Category Inception Budget Expenditures Contingencies Encumbrances Balance Complete Status Date Comments RF-09004 LATP Site Development Preparation Minor $200,000 $21,349 $0 $0 $0 $21,349 89% Complete Project was successfully completed. Consultant's environmental risk assessment for cleanup of site was approved by regulatory agency for Areas A and B. Existing funds in balance will be released. RF-10002 Flare Relocation Project Minor $700,000 $606,546 $15,682 $0 $42,879 $547,985 22% Construction Dec 13 Design, permitting and bidding was completed in late 2011 and the bids exceeded available budget. A modified design and a rebid has now been completed and a contract was approved by Council on Jan 13. A BAO was also approved and work is expected to be completed by Dec 13. RF-07001 Relocation of Landfill Facilities Multi-Year $620,818 $223,875 $25,843 $216 $360,124 ($162,308) 126% Construction Apr 13 The relocation of the Recycling Center has been cancelled. Improvements to the permanent Household Hazardous Waste (HHW) facility at the end of Embarcadero Way on the wastewater treatment plant property are proceeding. Final design and permitting was completed and bid in mid 2012. No bids were received due to a purchasing problem. Rebid and a contract was approved on Jan 13 along with a BAO for $205,150. work is scheduled to be substantially completed by Apr 13. RF-10003 Drying Beds, Material Storage and Transfer Area Multi-Year $122,700 $53,031 $0 $0 $0 $53,031 57% Complete Additional material storage bunkers have been constructed at the MSC. Drying beds currently located on the 10 acres that was subject to Measure E are to be relocated inside the RWQCP under a future CIP. RF-11001 Landfill Closure Multi-Year $6,718,404 $6,010,110 $77,345 $376 $316,835 $5,615,554 16% Construction Dec13 Construction was completed in Mar 12 for the undergrounding of environmental control systems in the closed sections of the landfill. Design for the Phase IIC cap is underway. Capping work is scheduled to be completed by Dec 13. FY 2013 MID-YEAR CAPITAL IMPROVEMENT PROGRAM PROJECTS STATUS MINOR PROJECTS MULTI-YEAR PROJECTS 33 of 35 2/26/2013 ATTACHMENT DFY 2013 MID-YEAR CAPITAL IMPROVEMENT PROGRAM PROJECTS STATUS Total Budget FY 2013 Budget Estimated Project Project Project From Available FY 2013 FY 2013 FY 2013 Remaining Percent Project Completion Number Title Category Inception Budget Expenditures Contingencies Encumbrances Balance Complete Status Date Comments SD-06102 San Francisquito Creek Storm Water Pump Station Multi-Year $6,387,019 $48,213 $8,165 $0 $6,400 $33,648 99% Complete Jun 19 Required mitigation monitoring for 10 years (through FY 2019) is the only remaining task. SD-06104 Connect Clara Drive Storm Drains to Matadero Pump Station Multi-Year $953,480 $1 $0 $0 $0 $1 0% Design May 13 Project design is being performed by in-house staff. New construction funding has been programmed for FY 2014. SD-10101 Southgate Neighborhood Storm Drain Improvements Multi-Year $1,041,261 $950,195 $67,478 $14,411 $38,600 $829,706 20% Design May 13 Staff will return to Council for consultant contract amendment. Project design continues with construction scheduled for Fall 13. SD-11101 Channing Avenue/Lincoln Avenue Storm Drain Improvements Multi-Year $5,777,581 $3,769,596 $895,771 $0 $1,132,492 $1,741,333 70% Construction Feb 13 Phase 1 complete. Completion of Phase II is expected to be done by end of Feb 13. Staff will begin designing Phase III by Feb 13. ENTERPRISE FUND STORM DRAINAGE FUND PUBLIC WORKS DEPARTMENT MULTI-YEAR PROJECTS 34 of 35 2/26/2013 ATTACHMENT DFY 2013 MID-YEAR CAPITAL IMPROVEMENT PROGRAM PROJECTS STATUS Total Budget FY 2013 Budget Estimated Project Project Project From Available FY 2013 FY 2013 FY 2013 Remaining Percent Project Completion Number Title Category Inception Budget Expenditures Contingencies Encumbrances Balance Complete Status Date Comments WQ-10001 Plant Master Plan Minor $1,381,266 $471,668 $60,219 $0 $411,450 ($1) 100% Construction Jun 14 Long Range facilities Plan Report completed, minor consultant services provided by Carollo; Bay Area Biosolids Coalition joined Dec 12 and invoice from BAB2E pending; BAO completed in Jan 13 for $421,678. Biosolids Facility Plan to be completed by Jun 14. WQ-04011 Facility Condition Assessment and Retrofit Multi-Year $4,950,082 $3,126,263 $625,257 $0 $262,253 $2,238,753 55% Design Jun 13 Ongoing retrofit projects. Facility Repair and retrofit Project #2 construction completed. Facility Repair and Retrofit Project #3 at 90% design. ENTERPRISE FUND WASTEWATER TREATMENT FUND PUBLIC WORKS DEPARTMENT MINOR PROJECTS MULTI-YEAR PROJECTS 35 of 35 2/26/2013 ATTACHMENT E Project Category Department/Fund Project Title FY 2009 FY 2010 FY 2011 FY 2012 FY2013 Community Services - General Fund : Land & Land Improvements AC-86017 Art in Public Places $21,556 $17,256 $77,956 $17,171 $0 Planning & Community Environment - General Fund : Streets & Sidewalks PL-05030 Traffic Signal Upgrades 39,983 278,187 183,141 244,272 196,402 Public Works - General Fund : Streets & Sidewalks PE-86070 Street Improvements (Street Improvement Fund)3,702,381 3,323,063 4,710,791 3,170,679 2,712,618 Building & Facilities PF-00006 Roofing Replacement 21,073 227,495 104,617 319,495 122,965 Building & Facilities PF-01003 Building Systems Improvements 114,152 36,053 74,876 59,798 27,061 Building & Facilities PF-02022 Facility Interior Finishes 47,116 11,076 23,874 234,085 10,748 Building & Facilities PF-93009 ADA Compliance 121,617 216,133 9,994 167,537 0 Streets & Sidewalks PO-05054 Street lights Improvements 15,970 32,976 159,070 61,844 6,181 Streets & Sidewalks PO-89003 Sidewalk Improvements 1,675,527 952,503 1,611,917 1,673,715 507,241 Public Works - Storm Drainage Fund : SD-06101 Storm Drain System Replacement 445,582 81,878 488,793 242,488 688,386 Public Works - Wastewater Treatment Fund : WQ-80021 RWQCP Plant Equipment Replacement 2,544,261 403,293 66,916 236,987 998,540 WQ-80022 RWQCP System Flow Metering 56,245 0 28,468 0 0 Electric Fund : EL-02011 Electric Utility GIS 39,414 188,231 321,713 108,072 87,217 EL-06005 Fiber Optics Ring System Improvements 58,124 5,531 0 0 0 EL-06006 Fiber Optics Customer Design and Connection Services 195,808 17,203 0 0 0 EL-89028 Electric Customer Connections 1,467,233 1,702,232 1,882,242 633,194 1,375,622 EL-89031 Communications System Improvements $21,784 $0 $3,501 $0 $0 EL-89038 Substation Protection Improvements 94,411 133,185 129,086 59,646 114,117 EL-89044 Substation Facility Improvements 93,735 3,133 148,871 74,247 18,715 EL-98003 Electric Distribution System Reconstruction and Improvements 1,265,486 1,330,082 1,608,521 1,034,407 972,143 Fiber Optics Fund : FO-10000 Fiber Optic Customer Connections 0 68,373 88,061 8,627 51,465 FO-10001 Fiber Optic Network System Improvements 0 34,614 327,736 21,676 53,462 Continuous Capital Projects Five Years of Expenditures for Fiscal Years 2009-2013 Page 1 of 2 2/26/2013 ATTACHMENT E Project Category Department/Fund Project Title FY 2009 FY 2010 FY 2011 FY 2012 FY2013 Continuous Capital Projects Five Years of Expenditures for Fiscal Years 2009-2013 Gas Fund : GS-02013 GS-03007 Directional Boring Equipment 59,410 0 162 20,160 0 GS-03002 GS-04003 GS-05002 Gas Main Replacements 38,121 87,706 86,159 31,556 0 GS-03008 Polyethylene Fusion Equipment Replacement 35,650 0 444 0 0 GS-03009 System Extensions-Unreimbursed 12,000 4,005 7,718 0 1,094 GS-06001 Gas Main Replacements, GMR-Project 16 2,423,677 89,180 127,056 0 0 GS-07002 Gas Main Replacements, GMR-Project 17 912,018 3,681,252 211,515 90,945 577 GS-80017 Gas System Extensions 356,666 347,412 471,001 119,788 382,565 GS-80019 Gas Meters and Regulators 244,129 313,598 294,191 87,457 25,652 Wastewater Collection Fund: WC-02002 WC-03003 WC-04002 Sewer System Rehabilitation and Augmentation, Project 15,16 and 17 8,840 27,141 122,870 19,968 0 WC-05003 WC-06003 WC-07004 Sewer System Rehabilitation and Augmentation, Project 18,19 and 20 2,154,931 1,761,725 94,468 39,229 98,970 WC-08012 WC-09001 WC-10002 Sewer System Rehabilitation and Augmentation, Project 21,22 and 23 285,858 543,313 1,928,374 419,207 572,888 WC-80020 Sewer System Extensions 370,253 251,152 224,066 30,792 158,943 WC-99013 Sewer Manhole Rehabilitation 48,227 168,722 378,841 148,433 296,558 Water Fund : WS-02003 Water Main Replacements, Project 16 19,695 0 0 0 0 WS-02014 Water-Gas Wastewater utilities GIS Data 33 204,583 289,694 18,966 152,735 WS-06002 Water Main Replacements, Project 20 93,554 349 10,821 0 0 WS-07003 Water Main Replacements, Project 21 226,559 1,383,427 1,432,826 0 0 WS-80013 Water System Extensions 295,194 285,945 258,968 111,615 277,171 WS-80014 Service and Hydrant Replacements 104,951 43,538 44,232 9,344 231,124 WS-80015 Water Meters 14,712 2,298 0 0 0 Page 2 of 2 2/26/2013 ATTACHMENT D FINANCE COMMITTEE DRAFT EXCERPT MINUTES Page 1 of 11 Regular Meeting Tuesday, March 5, 2013 3. Finance Committee Recommendation Regarding Adoption of Budget Amendment Ordinance Amending the Budget for Fiscal Year 2013 to Adjust Budgeted Revenues and Expenditures in Accordance with the Recommendations in the Midyear Report. Christine Paras, Principal Financial Analyst presented the second quarter results and a snapshot of finances as of the second quarter of the fiscal year (FY). Staff had two recommendations: adopt the Budget Amendment Ordinance (BAO) and recommend to Council the adoption of a Resolution to amend the Management Comprehensive Plan. The General Fund showed positive results for the second quarter. In FY 2011, the Budget exceeded targets by 5.9 percent. In FY 2012, the Budget exceeded targets by 9.2 percent. Staff proposed a revenue adjustment of an increase of $4.2 million. The majority of the increase was related to tax revenues. Of that $4.2 million, $3.9 million was attributed to improved tax revenues. That was a 2.9 percent increase over the Adopted Budget. There was an increase of $1.7 million in Documentary Transfer Tax. Most of that was a one-time increase for the year. Other revenue increases included a $300,000 total increase in other investment incomes and department revenues. Chair Burt requested the meaning of "one-time Documentary Transfer Tax." Joe Saccio, Assistant Director of Administrative Services explained that the City had an extraordinary remittance in one month that Staff considered in FY 2014 projections. Chair Burt recalled an extraordinary remittance occurred two years ago. Mr. Saccio reported the City had a series of three $500,000 remittances, which were above normal per month. Staff attempted to back out some amount of that increase to achieve a realistic picture for future years. Chair Burt suggested there be a pattern, albeit unpredictable. ATTACHMENT D DRAFT EXCERPT MINUTES Page 2 of 11 Finance Committee Regular Meeting Draft Excerpt Minutes 03‐05‐13 Mr. Saccio averaged remittances over ten years and calculated between $4.8 million to $5 million per year. He said the City was experiencing a groundswell that yielded more Documentary Transfer Tax. In the prior year, Documentary Transfer Tax was slightly above $5 million, even with the extraordinary remittances. Ms. Paras stated proposed expense adjustments had a net worth of $1 million. The net budget amount of salary and benefit adjustments was $42,000. Another adjustment pertained to the medical retiree Annual Required Contribution (ARC). Overtime decreased 37 percent due to elimination of minimum staffing and organizational changes in the Fire Department. Other non-salary adjustments included the removal of Palo Alto Animal Services (PAAS) negative placeholder. Staff included a $400,000 placeholder in the Adopted Budget for Staff to determine how to address concerns regarding PAAS. That plan was presented and adopted by the Council in July 2012. The adjustment reversed that placeholder. The General Fund Budget Stabilization Reserve (BSR) began the fiscal year with $27.7 million. To date, the Council approved four BAOs totaling $500,000. Proposed midyear changes netted to $3.2 million, which left a BSR projected as a yearend balance of $30.4 million. As a percentage of adopted expenditures, the BSR percentage was 19.88 percent. This amount exceeded the 18.5 percent target BSR level by $2.1 million. The Water Fund had a $4.9 million savings at midyear due to completed or nearly completed Capital Improvement Program (CIP) projects. One of the major CIPs in the Water Fund that Staff reduced was the water main replacement totaling $2.7 million. This project was deferred to, and completed in FY 2014. The Electric Fund had $8.5 million in savings, $6.9 million of that resulted from lower commodity costs. Staff proposed drawing $1.3 million from reserves for the Vehicle Replacement Fund. The Fleet Review Committee decided to replace vehicles and equipment. Staff proposed returning $800,000 of CIP funds to the originating department. Those projects included the Utility Billing Project, because its cost was less than expected. The recurring credit card payment CIP of $200,000 was put on hold. Lalo Perez, Director of Administrative Services stated surrounding communities were experiencing similar revenue increases. Property tax was increasing for surrounding communities, while Palo Alto remained flat over the past few years. Staff recommended wise investment of excess monies, rather than committing them to permanent ongoing expenditures. The City banked funds from the prior two years and transferred $7.6 million to Infrastructure. ATTACHMENT D DRAFT EXCERPT MINUTES Page 3 of 11 Finance Committee Regular Meeting Draft Excerpt Minutes 03‐05‐13 Vice Mayor Shepherd asked if revenue levels returned to 2008 levels or increased beyond that. Mr. Perez indicated revenues were slightly better than 2008 levels. Utilities taxes seemed to be flat, but the Documentary Transfer Tax reached a new record. Vice Mayor Shepherd stated commercial liquidity increased, because banks were lending funds. Mr. Perez indicated the hotel tax was a surprise. Vice Mayor Shepherd inquired whether the Council had two budgets. Mr. Perez explained the Council had an Operating Budget that paid Council Members' stipend and incidentals, and the Council Contingency Fund of $250,000. Vice Mayor Shepherd asked what happened to funds in the Council Contingency Fund. Mr. Perez indicated the base amount was $250,000 every year. If the Council did not allocate those funds, they went to reservice. Vice Mayor Shepherd recalled Council Contingency Funds were not allocated in 2012. Mr. Perez stated any unspent money was treated the same as excess revenues. Vice Mayor Shepherd asked what the Council Contingency Fund was used for. James Keene, City Manager reported a year of not spending Council Contingency Funds was an irregularity. Vice Mayor Shepherd noted that Council spent some Contingency Funds on High Speed Rail (HSR); however, that was reversed. Mr. Perez explained those funds became part of the budget. Vice Mayor Shepherd inquired about the process to allocate Council ATTACHMENT D DRAFT EXCERPT MINUTES Page 4 of 11 Finance Committee Regular Meeting Draft Excerpt Minutes 03‐05‐13 Contingency Funds. Mr. Perez reported the Finance Committee (Committee) could make a recommendation to the Council, along with Staff's recommendations. Vice Mayor Shepherd inquired whether PAAS donations were ahead of schedule. Amber Cameron, Senior Financial Analyst reported Staff cleaned up the placeholder in the non-departmental section to show all changes for PAAS. Mr. Keene recalled one of the Budget components for PAAS included increased donations. Ms. Cameron noted PAAS fees increased between 20 and 30 percent. This fiscal year, Staff drew on the donations account to make up the shortfall. In FY 2014 Staff projected an overall $450,000 reduction from PAAS. Revenue increases were trending close to projections. Mr. Keene inquired whether PAAS was meeting projections for revenues and expenses. Ms. Cameron indicated most expenditure reductions were staffing reductions that took place January 1, 2013. The first six months of FY 2013 revenues were approximately 30 percent higher than FY 2012 as a result of increased fees. Vice Mayor Shepherd inquired about the overall picture for PAAS. Ms. Cameron noted the General Fund was still subsidizing PAAS. Vice Mayor Shepherd asked if the City could use donations for PAAS. Ms. Cameron reported PAAS had approximately $300,000 from historical donations. Staff allowed PAAS to use those funds to make up the $449,000 target; that option was not available for FY 2014. Mr. Keene understood proposals included a series of revenue strategies and expenditure reductions, with the idea of having a sustainable program. Ms. Cameron stated the challenge was making PAAS have no net cost to the General Fund. ATTACHMENT D DRAFT EXCERPT MINUTES Page 5 of 11 Finance Committee Regular Meeting Draft Excerpt Minutes 03‐05‐13 Mr. Keene believed PAAS was not receiving as much revenue as hoped. Some expenditure reductions were difficult to implement because of revenue flow and service impact. Ms. Cameron noted small dog spay and neuters decreased. Revenues overall were meeting the projected increase. Overall PAAS was doing well. Vice Mayor Shepherd recalled six Police positions were frozen, and asked if those positions were going to be unfrozen in FY 2014, or possibly sooner. Mr. Perez reported the different financial outlook provided the opportunity to revisit that; however, Staff had to consider more than one year from a financial perspective. Mr. Keene explained the Police Department did not suffer any staffing service reductions in prior years. The idea of freezing the positions was a way of acknowledging a potential future need for those positions. The Police Department had additional challenges on the staffing level beyond the freezing issue. Ron Watson, Police Captain reported the Police Department had 14 vacant positions during Budget discussions in 2012. Freezing seven positions did not have an immediate impact if the remaining seven positions were filled. The Police Department did not need those seven frozen positions, but the plan was to have them released for FY 2014. The Police Department still had three or four position vacancies. The Department's ability to respond to burglaries and robberies required having those positions filled. If the four vacant positions were filled and additional officers were needed, the Police Chief needed to contact the City Manager to unfreeze some positions. Vice Mayor Shepherd reiterated that the Police Department did not need those frozen positions at the current time, but during the Budget process they wanted to unfreeze the positions. Mr. Watson agreed with that statement. The seven frozen positions were not preventing the Police Department from filling vacant positions. Vice Mayor Shepherd asked if there was a correlation between an increase in crime and a decrease in the number of officers. Mr. Keene explained the frozen positions were acceptable, because they ATTACHMENT D DRAFT EXCERPT MINUTES Page 6 of 11 Finance Committee Regular Meeting Draft Excerpt Minutes 03‐05‐13 were not planning on being filled soon. The Police Department was working to fill vacant positions. The City needed to hire officers who met City standards. He and the Police Chief discussed concerns regarding overall staffing, retention levels, and ensuring adequate staffing was maintained. Vice Mayor Shepherd requested a comprehensive report. Mr. Keene expected this would be a discussion point in the FY 2014 Budget discussion. Mr. Watson stated if those seven positions were unfrozen today, he did not have seven candidates to fill them. Mr. Perez reported Staff had an approved process for the City Manager to hire officers without having to go through the Council. Chair Burt believed the issue was having enough open positions to accommodate the number of officers the City wanted to hire. Council Member Schmid noted the project on El Camino Real and Stanford had a remaining balance of $1.246 million, and recalled those were grant funds. He inquired whether the remaining balance had to be returned to the grant source or placed in a reserve. Mike Sartor, Public Works Director reported a grant from the Santa Clara Valley Transportation Authority (VTA) paid for the bulk of the project, reimbursement had not occurred. Curtis Williams, Director of Planning and Community Environment assumed funds needed to be returned to the grant source. Council Member Schmid asked where the $2.2 million for sidewalks and streets were located in the FY 2013 budget. Mr. Perez explained the Council approved adding $2.2 million to the budget for infrastructure needs; however, Staff did not have time to allocate those funds. The allocation of funds was agendized within the next month, and a Staff Report addressing mainly streets and sidewalks was provided. Council Member Schmid asked Staff to comment regarding the $7.6 million transfer from BSR to Infrastructure. ATTACHMENT D DRAFT EXCERPT MINUTES Page 7 of 11 Finance Committee Regular Meeting Draft Excerpt Minutes 03‐05‐13 Mr. Perez indicated $7.6 million went to Infrastructure Reserves, and increased the balance to approximately $12 million. Council Member Schmid inquired whether the Council had discussed those funds. Mr. Perez stated Staff was developing a plan for FY 2014, possibly to enhance expenditures and add resources to accelerate spending. Council Member Schmid asked if they were one-time capital expenditures. Mr. Keene anticipated Infrastructure Reserve money was used to make significant progress on the Pavement Condition Index and the California Avenue project. Council Member Schmid stated the City was making progress without using the $2.2 million or the $7.6 million. Mr. Keene stated Staff was planning for the $2.2 million. Council Member Schmid inquired whether turnover of the City's portfolio was affecting the decrease in return on investment. Mr. Perez agreed and said as securities matured; the City was investing at a lower rate. Council Member Schmid stated a high rate of return involved more risk, and the City had clear requirements for safe, secure investments. Mr. Perez noted the City was ahead of surrounding jurisdictions when comparing rate of return because Staff had Council authority to extend the maturity range and because the City's portfolio was larger. Council Member Schmid understood the audit report to indicate the City was going to reconsider vehicle usage and replacement; however, the Staff Report seemed to indicate vehicles were needed. Mr. Perez explained a typical budget included $3-$4 million to replace fleet vehicles on an ongoing basis. The Council directed Staff to address outstanding issues before setting a budget, and to come to the Council on as needed basis for vehicles. Staff's recommendation was vetted as a real need. ATTACHMENT D DRAFT EXCERPT MINUTES Page 8 of 11 Finance Committee Regular Meeting Draft Excerpt Minutes 03‐05‐13 Mr. Sartor reported Staff engaged a consulting firm to study the City's fleet operation. Staff planned on returning to the Committee with the results of that study and with recommendations later in the spring, or possibly in the summer. Council Member Schmid noted there were no Capital Improvement Program (CIP) projects for Cubberley, and inquired whether the discussion reached a point for consideration of CIPs. Mr. Perez stated a major renovation would be postponed until a determination was made on the future of Cubberley. Staff pushed out the projects a year or two to await a final report. The City needed to make decisions jointly with the Palo Alto Unified School District (PAUSD). Council Member Schmid asked if Staff had considered renovations. Mr. Perez indicated Cubberley improvements were identified in outer years. Mr. Sartor stated Staff identified work for Cubberley on both in the City, and PAUSD portions for maintenance in the five-year plan, and beyond the five year plan. Council Member Berman inquired whether the City was responsible for maintenance for City-owned and PAUSD-owned property under the current lease. Mr. Sartor answered yes. Council Member Schmid inquired about the task order construction contract located on page 364 of the Staff Report. Mr. Sartor explained the City entered into a contract to assist with activities that were needed to complete the Mitchell Park Library, if the current contractor did not perform. The contract required the current contractor to have a coordinator for electrical and mechanical systems, and Staff had concerns about the proposed coordinator. Council Member Schmid stated that was a potential expense. Mr. Sartor indicated Staff wanted to have a failsafe option to complete the project should the current contractor not perform. ATTACHMENT D DRAFT EXCERPT MINUTES Page 9 of 11 Finance Committee Regular Meeting Draft Excerpt Minutes 03‐05‐13 Council Member Schmid commented that funds for trails in Arastradero and Foothills Parks were being effectively used. Chair Burt stated the Transient Occupancy Tax (TOT) did not include revenue from new capacity. Mr. Saccio agreed it was not included there or in the Long Range Financial Forecast. Chair Burt inquired whether revenues included hotels under construction. Mr. Saccio reported Staff had estimates for the Casa Olga project, but did not include them. Chair Burt asked if the Utility billing software was $800,000 under budget. Ms. Paras indicated $400,000 under budget. Chair Burt inquired whether Staff anticipated changes to utility rates as a result of midyear information. Mr. Perez reported the preliminary discussion was that there were no rate increases for gas and electric. Staff was considering rate changes for water and possibly waste water. Chair Burt asked how $6.9 million lower commodity costs for electric affected rates. Mr. Perez believed there was no effect on rates. Mr. Keene did not have rate recommendations, and believed discussions pertained to an increase in water rates only. He thought there could be some proposed reductions after all discussions were through. Mr. Perez added that alternative power generating did not go live as it was expected, and was part of the discussion. Mr. Keene noted discussions included the possibility of maintaining steady rates. Vice Mayor Shepherd appealed to Committee Members to consider a ATTACHMENT D DRAFT EXCERPT MINUTES Page 10 of 11 Finance Committee Regular Meeting Draft Excerpt Minutes 03‐05‐13 recommendation for the Council to fund Automated External Defibrillators (AED) for police vehicles and libraries. Mr. Perez reported the Police Department requested $25,000 for defibrillators. The Committee was to review the request during the budget process; however, he thought the Committee could request funding now rather than through the budget process. Mr. Keene indicated the Fire Chief reported an AED was going to cost approximately $2,000. Vice Mayor Shepherd inquired whether colleagues supported this in a Motion for Budget adjustments. MOTION: Vice Mayor Shepherd, seconded by Council Member XXXX to have City Council consider using Council Contingency funds for the purchase of automated external defibrillators for police vehicles and libraries. MOTION FAILED DUE TO LACK OF A SECOND Chair Burt stated AED’s cost less, they provided more automation, they required less training, they allowed use by more people, and they saved many lives. AEDs fulfilled emergency preparedness and community health needs. He inquired whether the $25,000 request was for police vehicles. Mr. Watson reported the Police Department was not having success with grant funding for AEDs. The $25,000 provided outfitting for some police cars. If AEDs were located in libraries as well, the amount needed to increase. Chair Burt was unsure whether libraries were the most valuable location in comparison to pools or sports fields. He suggested the Committee consider a recommendation to the Council, after getting the number intended for the 2014 budget, and move it forward to the current time. Between now and the Council discussion, Staff needed to identify whether there were additional locations for priority consideration. Mr. Watson suggested City Hall be added as a location. Mr. Perez indicated Staff would adjust the amount to the estimated need prior to a Council discussion. ATTACHMENT D DRAFT EXCERPT MINUTES Page 11 of 11 Finance Committee Regular Meeting Draft Excerpt Minutes 03‐05‐13 MOTION: Vice Mayor Shepherd moved, seconded by Chair Burt to recommend to the City Council the adoption of: 1) Budget Amendment Ordinance (BAO) (Attachment A) which includes: a) Proposed midyear adjustments to the Fiscal Year 2013 Budget for the General Fund, Enterprise Funds, Special Revenue Funds, Internal Service Funds, and Capital Improvement Projects Fund (Exhibit 1) b) Fiscal Year 2013 Midyear CIP Adjustments (Exhibit 2) c) Amendments to the Fiscal Year 2013 Table of Organization (Exhibit 3) 2) Resolution of the Council of the City of Palo Alto Amending the 2011- 2013 Compensation Plan for Management and Professional Adopted by Resolution No. 9282 to Change the Title of Two Positions, Change the Salary for Two Positions, Salary Sheet Corrections for Three Positions, Grade Code Correction for One Position and Eliminate one Position (Attachment B), which includes: a) Management/Professional Compensation Plan Changes (Exhibit 1) 3) have City Council consider using Council Contingency funds for the purchase of automated external defibrillators for police vehicles. Vice Mayor Shepherd thought using 2013 funds rather than 2014 funds was more appropriate because of the emergency preparedness component. MOTION PASSED: 4-0 City of Palo Alto (ID # 3066) City Council Staff Report Report Type: Consent Calendar Meeting Date: 4/15/2013 City of Palo Alto Page 1 Council Priority: Environmental Sustainability Summary Title: First Reading (Consent)-Disposable Bag Checkout Ordinance Title: Adoption of an Ordinance Amending Palo Alto Municipal Code Section 5.35 to Expand Plastic Bag Ban to Retail and Food Establishments, Require Retailers to Charge Fee for Paper Bag Use and Provision of Phased Implementation From: City Manager Lead Department: Public Works Recommendation Staff recommends that Council adopt the proposed Retail and Food Service Establishment Checkout Bag Requirements Ordinance (Attachment A). The proposed ordinance now includes revisions that were made at the request of Council at the March 11, 2013 City Council Meeting. Executive Summary At the Council meeting on March 11, 2013, the proposed Retail and Food Service Establishment Checkout Bag Requirements Ordinance and the Draft Environmental Impact Report (EIR) which was required for the project were reviewed by City Council. Council adopted a Motion to approve staff’s recommendations, certify the Final EIR and establish the Ordinance as proposed by staff, with the following amendments which are reflected in the final ordinance submitted for approval in Attachment A: 1. Chapter 5.35, Section 5.35.010 Definitions, Subsection (f) i Pre- Approved Materials to allow smaller reusable bags for sale; 2. Remove the EcoLogo labeling requirement for reusable bags indicated in Subsection (d) Pre-Approved Standard, Numbers 3 and 4; City of Palo Alto Page 2 3. Amend Section 5.35.030, Section (b) to cap the fee for paper and reusable bags at 10 cents and have staff return to Council in 18-24 months for review on pricing policy; and 4. Have this Ordinance return as a first reading of the amended Ordinance on the Consent Agenda. Staff has made these requested changes (Attachment B highlights the specific changes that were made for ease of reference) and has also provided additional information about how staff revised the labeling requirement for reusable bags and an update on a legal challenge to the City of Cupertino from the Save the Plastic Bag Coalition (STPBC) in response to Cupertino’s attempt to cap the charge for paper bags at ten cents. Because Palo Alto City Council has directed staff to also cap the charge for paper (and reusable bags) at ten cents, additional information STPBC threat is discussed below. Reusable Bag Labeling Requirements Staff has removed the Reusable Bag labeling requirement at Council’s direction. Because staff needs to be able to confirm compliance with Reusable Bag standards, the ordinance has been restructured to allow merchants to either provide the information upon request with the existing bag reporting requirements and/or list the information on the bag. This allows staff the ability to ensure compliance, offers additional flexibility to the merchant in how that is achieved and meets Council’s request for not requiring labeling on all Reusable Bags. In addition, the revised ordinance retains the original option for the Director of Public Works to authorize alternative bag standards or materials as needed which includes the ability to waive or alter labeling requirements in unique cases where labeling proposes a problem. It should be noted that labeling is typically small and does not dominate other graphic elements of reusable bags and is often placed on the bottom of the bag. Legal challenge to Cupertino for foregoing the 25 cent charge for paper Palo Alto City Council directed Staff to remove the automatic increase to a 25 cent charge requirement for paper and reusable bags in the proposed Ordinance which would have occurred one year after Ordinance implementation. Instead, staff will review the impact of the ten cent charge on bag use 18-24 months after the Ordinance has been implemented and City of Palo Alto Page 3 make recommendations as to if an increase to 25 cents should be considered. Under threat of litigation from Save the Plastic Bag Coalition (STPBC), the City of Cupertino Council reversed a similar decision to cap the charge for paper bags at ten cents. STPBC stated that the EIR Cupertino used only evaluated the option for a ten cent charge with an automatic increase to 25 cents. While Cupertino staff believes that this analysis is inaccurate, Cupertino Council voted to automatically increase the charge to $0.25 on January 1, 2015 to avoid litigation. Palo Alto’s EIR, as opposed to the San Mateo County EIR relied on by Cupertino, allows for either keeping the paper/reusable bag charge at ten cents or increasing it to 25 cents. The EIR analyzed both scenarios and all impacts for each option were either less than significant and/or beneficial. Timeline Staff proposes the following timeline for ordinance implementation: Resource Impact No significant additional financial or staff resources will be necessary to Month/Year Project Milestones March 2013 Council approval of EIR (completed) April 15, 2013 First ordinance reading (consent) May 13, 2013 Second ordinance reading. April - July 2013 Public outreach to retail, food service establishments and residents July 1, 2013 Ordinance effective date for retail November 1, 2013 Ordinance effective date for food service establishments Spring, 2015 Council Report on Ordinance Impacts and pricing recommendations for Reusable and Recyclable Paper Checkout Bags Ongoing Monitoring and ordinance enforcement City of Palo Alto Page 4 implement this ordinance. Additional discussion on resource impact is discussed in Staff Report 3065, March 11, 2013. Policy Implications The proposed Retail and Food Service Establishment Checkout Bag Requirements Ordinance is fully consistent with the City’s Plastic Reduction Policy, Zero Waste Plan, Clean Bay Plan, Sustainability Plan, and stormwater regulatory requirements. Environmental Review An EIR was conducted for this project and certified on March 11, 2013 by Council. Discussion of the EIR is included in Staff Report 3065, March 11, 2013. Attachments: A: Proposed Ordinance Retail and Food Service Establishment Checkout Bag Requirements (PDF) B: Proposed Ordinance (Tracking Council Suggested Changes) Retail and Food Service Establishment Checkout Bag Requirements (PDF) 03-11-13 CC Excerpt Item 3 Plastic Bags (DOC) Not Yet Approved 1 130410 jb 0131056A Attachment A Ordinance No. ______ Ordinance of the Council of the City of Palo Alto Amending Chapter 5.35 of the Palo Alto Municipal Code Regarding Retail and Food Service Establishment Checkout Bag Requirements The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Findings. The City Council finds as follows: (a) Single use plastic bags have environmental effects as many of these bags are conveyed across land or through storm drains into local creeks, the San Francisco Bay and into the Pacific Ocean. Studies have shown that 70% of the litter found in storm drains and at clean up events is plastic (bags, packaging, single‐use disposable products). (b) Plastic bags that enter the marine environment have been found to adversely impact many wildlife species that ingest or become entangled in them. Paper bags tend to break down faster and do not pose the same risks for ingestion and entanglement. (c) Eighty percent of ocean debris originates from land. Plastic debris does not completely biodegrade in the marine environment; instead plastics break down into smaller and smaller pieces, absorbing toxins, which in turn harm marine animals when they are mistaken for food. The Pacific Ocean contains a huge accumulation of plastic debris. Some scientists estimate that the density of plastic can be as great as one million pieces of plastic per square mile and plastic debris has increased over 100 fold in the past 40 years. (d) Plastic and paper checkout bags represent an unnecessary use of a nonrenewable resource. Reusable bags represent the sustainable alternative to single‐use bags of all types, because they consume less resources overall and produce less waste. (e) Even with the emphasis on recycling of plastics in the last several decades, the plastic bag recycling rate in California as of 2008 remains at approximately five percent or less, according to the California Integrated Waste Management Board. (f) The City discourages the use of all types of single‐use checkout bags, because single‐use bags consume more resources and produce more waste than reusable bags. However, plastic bags are the least desirable type of all single‐use bags, because they consume a nonrenewable resource, degrade very slowly and harm creek and marine life. It is the City's intent to address all types of single‐use checkout plastic bags, including compostable and biodegradable ones, because all types consume non‐renewable resources and can harm creek and marine life. Not Yet Approved 2 130129 jb 0131056A (g) Expanding the current ordinance supports the City’s goal of Zero Waste by 2021 by reducing distribution of both plastic and paper bags. Ordinance expansion would reduce residuals contamination in municipal compost. A majority of compost contamination is comprised of plastic film and must be disposed as garbage. (h) Paper bags are more successfully recycled than plastic bags given current technologies. Therefore, diverting paper bags from landfill disposal is more attainable than it is for plastic bags. However, recyclable paper checkout bags do cause negative environmental impacts such as air, land and water pollution during resource extraction, manufacturing, transportation and ultimately in their disposal as even recycling paper bags consumes energy and causes pollution. (i) Reusable bags are considered worldwide to be the best option to reduce waste and litter, protect wildlife and conserve resources. Reusable bags have lower associated greenhouse gas emissions than single‐use bags and are readily available and affordable for the customer. (j) In 2012, despite an existing ban on single use plastic bags in grocery stores over 10,000 square feet, approximately 350 bags were found in the lower Palo Alto watershed. 130 of these bags were found on streets and in storm drains by a small number of volunteers during a one month tally, and an additional 220 plastic bags were removed from Adobe and Matadero Creeks during annual volunteer creek clean‐up events. (k) Given public awareness of the harm caused by single‐use plastic bags, one‐third of Palo Alto food establishments already use paper bags exclusively to carry home food, and have voluntarily eliminated the use of single‐use plastic bags without harm or public complaint. This includes the full range of food establishments from take‐out to fine dining establishments. (l) Despite the positive impacts of the existing ordinance approximately fifty‐seven percent of combined grocery store and pharmacy checkout bags in Palo Alto are single‐use paper or plastic based on a 2012 survey. Therefore, further incentives are needed to decrease single‐ use checkout bags. (m) The City has given away more than 14,500 reusable checkout bags to Palo Alto residents to encourage their use. (n) Many cities in Santa Clara, San Mateo, San Francisco and Alameda counties in connection with single‐use bag ordinances have initiated charges on single‐use paper bags in order to offset the cost to retailers of this program and as an additional incentive for customers to use their own reusable bags. (o) Local cities are required by the Municipal Regional Permit (MRP) for storm water to reduce trash by 40% by 2014, 70% by 2017 and 100% by 2022, with cities Not Yet Approved 3 130129 jb 0131056A implementing plastic bag bans as one of the actions to achieve these requirements. Palo Alto’s short term trash reduction plan complying with the MRP is claiming a 6% reduction of trash with the current single use bag ban, however, cities with more comprehensive bans are claiming 12% reduction, assisting them in meeting this strict requirement in a cost‐effective manner. (p) Due to the negative environmental effects and the need to comply with regulatory requirements to reduce trash, it is therefore in the best interest of public health, safety, and welfare to restrict single‐use bag distribution within the boundaries of the City of Palo Alto. (q) It is the intent of the Council to reduce negative impacts of single‐use checkout bags through implementation of this Ordinance by continuing the requirement for grocery stores to not provide single‐use plastic checkout bags and expanding that requirement to include all Retail Service and Food Service Establishments, while implementing a charge to allow customers to purchase a single‐use paper bag or a reusable bag if the customer wants a bag and has not brought a reusable bag. SECTION 2. Sunset of Ordinance 5032. Ordinance 5032 adding Chapter 5.35 (Retail Sales – Requirement for Paper Checkout Bags and Limited Prohibition on Single‐Use Plastic Checkout Bags) to the Palo Alto Municipal Code shall sunset and be of no further force and effect on June 30, 2013. SECTION 3. New Provisions. Effective July 1, 2013, Ordinance 5032 shall be superseded by a new Chapter 5.35 to read as follows: Chapter 5.35 Retail and Food Service Establishment Checkout Bag Requirements. Sections: 5.35.010 Definitions 5.35.020 Types of Checkout Bags Permitted at Retail Service and Food Service Establishments 5.35.030 Checkout Bag Charge for Paper or Reusable Bags at Retail Service Establishments. 5.35.040 Operative Dates 5.35.050 Exemptions 5.35.060 Severability 5.35.070 Penalties Not Yet Approved 4 130129 jb 0131056A 5.35.010 Definitions. (a) “Checkout Bag” means a bag that is provided by a Retail Establishment at the checkstand, cash register, point of sale or other point of departure for the purpose of transporting food or merchandise out of the establishment. Checkout Bags do not include Produce or Product bags as defined in this Chapter. (b) “Food Service Establishment” means any establishment, located or providing food within the City of Palo Alto, which provides prepared and ready‐to‐consume food or beverages, for public consumption including but not limited to any Retail Service Establishment, eating and drinking service (as defined in Chapter 18), Take‐ out service (as defined in Chapter 18), supermarket, delicatessen, restaurant, food vendor, sales outlet, shop, cafeteria, catering truck or vehicle, cart or other sidewalk or outdoor vendor or caterer which provides prepared and ready‐to‐ consume food or beverages, for public consumption . (c) “Produce or Product Bag” means: i. any bag without handles provided to a customer to carry produce meats, bulk food, or other food items to the point of sale inside a store; ii. to hold prescription medication dispensed from a pharmacy; iii. to protect food or merchandise from being damaged or contaminated by other food or merchandise when items are placed together in a Reusable bag or Recyclable paper checkout bag; iv. a bag without handles that is designed to be placed over articles of clothing on a hanger. (d) “Recyclable Paper Checkout Bag” means a paper bag that meets one of the following criteria: i. Pre‐Approved Standard. A paper bag that meets all of the following requirements: 1. contains no old growth fiber; 2. is 100% recyclable overall and contains a minimum of 40% post‐ consumer recycled content; 3. displays the word “Recyclable” on the outside of the bag; and 4. the manufacturer, the location (country) where manufactured and the percentage of post‐consumer recycled content in an easy‐ to‐read size font. ii. Alternative Materials. The Director of Public Works or his or her designee is authorized to approve alternate materials or testing methods meeting this section’s requirements provided that the Director or designee finds that the proposed materials or testing standards satisfactorily comply with the intent, quality and effectiveness in order to meet the purposes Not Yet Approved 5 130129 jb 0131056A of this Chapter. The particulars of any approval made by the Director of Public Works or his or her designee under this subsection shall be entered upon the records of the Public Works Department and a signed copy shall be furnished to the applicant. iii. Alternative Standard. Any other published uniform Recyclable Paper Bag standard as approved by the Director of Public Works or his or her designee. (e) “Retail Service Establishment” means any establishment providing retail sale, rental, service, processing, or repair of items primarily intended for consumer or household use, including but not limited to the following: groceries, meat, vegetables, dairy products, baked goods, candy, and other food products; liquor and bottled goods, household cleaning and maintenance products; drugs, cards, and stationery, notions, books, tobacco products, cosmetics, and specialty items; flowers, plants, hobby materials, toys, household pets and supplies, and handcrafted items; apparel, jewelry, fabrics, and like items; cameras, photography services, household electronic equipment, records, sporting equipment, kitchen utensils, home furnishing and appliances, art supplies and framing, arts and antiques, paint and wallpaper, carpeting and floor covering, interior decorating services, office supplies, musical instruments, hardware and homeware, and garden supplies; bicycles; mopeds and automotive parts and accessories (excluding service and installation); cookie shops, ice cream stores and delicatessens. (f) “Reusable Checkout Bag” shall mean a bag with handles that is specifically designed and manufactured for multiple reuse which can be washed or wiped clean and meets all of the following criteria: i. Bags with a capacity of 15 liters or greater must meet all of the following requirements: 1. To confirm durability, bags must meet EcoLogo ATP‐001 standards (including future amendments or any successor legislation): a. Capacity Test ‐ minimum of 15 liters b. Dynamic Test ‐ minimum of 5 sets of 300 cycles (1,500 cycles total). 2. To confirm bag thickness of2.25 mils thick or greater, bags will be measured according to ASTM D6988‐08 or ISO 4593:1993 or ISO 4591:1992 standards (for embossed film) (including future amendments or any successor legislation). 3. To confirm the absence of heavy metals causing environmental hazards upon entering the solid waste stream, State methods Not Yet Approved 6 130129 jb 0131056A are to be used for preparing and for testing samples of each unique bag component following the Model Toxics in Packaging Legislation, and; 4. Is either: a. labeled in an easy‐to‐read sized font with the name of the manufacturer, the country of origin where manufactured, the material from which it is manufactured, the percentage of post‐consumer recycled content, and a statement that the bag does not contain heavy metals, or b. as an alternative, information about the manufacturer, the country of origin where manufactured, the material from which the bag is manufactured, the percentage of post‐ consumer recycled content, and a statement that the bag does not contain heavy metals can be provided through the reporting requirements set forth under 5.35.030 (d). ii. Reusable bags that with a capacity of less than 15 liters must meet all of the following requirements: 1. Is 2.25 mils thick or greater as measured according to ASTM D6988‐08 or ISO 4593:1993 or ISO 4591:1992 standards (for embossed film) (including future amendments or any successor legislation). 2. To confirm the absence of heavy metals causing environmental hazards upon entering the solid waste stream, State methods are to be used for preparing and for testing samples of each unique bag component following the Model Toxics in Packaging Legislation, and; 3. Is either: a. labeled in an easy‐to‐read sized font with the name of the manufacturer, the country of origin where manufactured, the material from which it is manufactured, the percentage of post‐consumer recycled content, and a statement that the bag does not contain heavy metals, or b. as an alternative, information about the manufacturer, the country of origin where manufactured, the material from which the bag is manufactured, the percentage of post‐ consumer recycled content, and a statement that the bag does not contain heavy metals can be provided through the reporting requirements set forth under 5.35.030 (d). iii. Alternative Materials. The Director of Public Works or his or her designee is authorized to approve alternate materials or testing methods meeting this section’s requirements provided that the Director or the designee Not Yet Approved 7 130129 jb 0131056A finds that the proposed materials or testing standards satisfactorily complies with the intent, quality and effectiveness in order to meet the purposes of this Chapter. The particulars of any approval made by the Director under this subsection shall be entered upon the records of the Public Works Department and a signed copy shall be furnished to the applicant. iv. Alternative Standard. Any other published uniform bag standard as approved by the Director of Public Works or his or her designee. (g) “Single‐Use Plastic Checkout Bag means any bag made predominately of plastic derived from natural gas, petroleum or a biologically‐based source, such as corn or other plant sources, which is provided to a customer at the point of sale which does not meet the definition of a Reusable Checkout Bag. 5.35.020 Types of Checkout Bags Permitted at Retail Service and Food Service Establishments (a) Retail Service Establishments within the City of Palo Alto shall provide or make available to a customer only Reusable Bags or Recyclable Paper Checkout Bags for the purpose of carrying away goods or other materials from the point of sale, subject to the terms of this Chapter. i. Single‐Use Plastic bags exempt from the ordinance include those integral to the packaging of the product, Produce or Product Bags, newspaper bags, door‐hanger bags, or bags sold in packages containing multiple bags intended for use as garbage, pet waste or yard waste bags. ii. Food Service Establishments within Retail Stores must comply with those requirements listed under 5.35.020(b); Food Service Establishments within Retail Service Establishments do not need to comply with the broader Retail Service Establishments requirements of this ordinance. iii. Farmers Markets may provide Produce or Product Bags to hold produce or bulk items. Checkout bag charges for these bags are not required at Farmers Markets unless Checkout Bags used to hold Produce or Product Bags are provided. (b) Effective November 1, 2013, Food Service Establishments shall provide or make available to a customer only Recyclable Paper Checkout Bags or Reusable Bags, at their discretion, for the purpose of carrying away goods or other materials from the point of sale, subject to the terms of this Chapter. Not Yet Approved 8 130129 jb 0131056A i. Produce or Product Bags without handles may be used at Food Service Establishments to hold containers of food items that are free liquids such as soups or stews that might be susceptible to spilling. (c) The City of Palo Alto encourages, but does not require in‐store public education and encouragement to customers about the use of reusable bags. In‐store education for Retail Service and Food Service Establishments is available at www.cityofpaloalto.org/plastics. (d) Nothing in this Chapter prohibits customers from using bags of any type that they bring to the establishment themselves or from carrying away goods that are not placed in a bag at point of sale, in lieu of using bags provided by the establishment. (e) A Retail Service or Food Service Establishment may provide a Reusable Bag at no charge if it is distributed as part of an infrequent and limited time promotion. Infrequent and limited time promotions shall not exceed a total of 14 days in any consecutive 12 month period. 5.35.030 Checkout Bag Charge for Paper or Reusable Bags at Retail Service Establishments. (a) Effective July 1, 2013, no Retail Service Establishment shall provide a Recyclable Paper Checkout Bag or Reusable Bag to a customer at the point of sale, unless the store charges the customer a checkout bag charge of at least ten cents ($0.10) per bag to cover the costs of compliance with the ordinance, the actual costs of providing recyclable paper bags, educational materials or other costs of promoting the use of reusable bags. (b) Retail Service Establishments shall establish a system for informing the customer of the charge required under this section prior to completing the transaction. This system can include store Clerks inquiring whether customers who do not present their own reusable bag at point of checkout want to purchase a checkout bag. (c) The checkout bag charge shall be separately stated on the receipt provided to the customer at the time of sale and shall be identified as the Checkout Bag Charge. Any other transaction fee charged by the Retail Service in relation to providing a Checkout Bag shall be identified separately from the Checkout Bag Charge. The checkout bag charge may be completely retained by the Retail Service and used for public education and administrative enforcement costs. (d) Retail Services Establishments shall keep complete and accurate records of the number and dollar amount collected from Recyclable Paper and Reusable Checkout Bags sold each month and provide specifications demonstrating that paper and reusable bags meet the standards set forth in Section 5.35.020 using Not Yet Approved 9 130129 jb 0131056A either the electronic or paper reporting format required by the City. This information is required to be made available to City staff upon request up to three times annually and must be provided within seven days of request. Reporting false information, including information derived from incomplete or inaccurate records or documents, shall be a violation of the Ordinance. Records submitted to the City must be signed by a responsible agent or officer of the establishment attesting that the information provided on the form is accurate and complete. 5.35.040 Delayed Implementation for Food Service Establishments. All Food Service Establishments shall comply with the requirements of Section 5.35.020 of this Ordinance beginning November 1, 2013. 5.35.050 Exemptions. (a) Undue Hardship. The City Manager, or his or her designee, may exempt a Retail Service or Food Service Establishment from the requirements of this Chapter for a period of up to one year, upon sufficient evidence by the applicant that the provisions of this Chapter would cause undue hardship. An undue hardship request must be submitted in writing to the City. The phrase “undue hardship” may include, but is not limited to, the following: i. Situations where there are no acceptable alternatives to Single‐Use Plastic Checkout Bags for reasons which are unique to the Retail Service or Food Service Establishment. ii. Situations where compliance with the requirements of this Chapter would deprive a person of a legally protected right. (b) Retail Service Establishments shall not enforce the 10 cent store charge for customers participating in the California Special Supplemental Food Program for Women, Infants, and Children, or in CalFresh, or in the Supplemental Nutrition Assistance Program (SNAP–formerly food stamps). This provision will expire on June 30, 2014. 5.35.060 Severability. If any provision or clause of this Chapter is held to be unconstitutional or otherwise invalid by any court of competent jurisdiction, such invalidity shall not affect other provisions of this Chapter, and clauses of this Chapter are declared to be severable. 5.35.070 Penalties. Not Yet Approved 10 130129 jb 0131056A (a) Anyone violating or failing to comply with any of the requirements of this Chapter shall be guilty of an infraction as set forth in Chapter 1.08 of the Palo Alto Municipal Code. (b) Each violation of this Chapter shall be considered a separate offense. (c) The remedies and penalties provided in this Section are cumulative and not exclusive. SECTION 4. CEQA. The Department of Public Works prepared an Environmental Impact Report for this Ordinance, which confirmed that the Ordinance does not have the potential to result in a significant impact on the environment and results in only beneficial or less than significant impacts. The EIR was available for public review beginning November 15 through December 31 and was certified by the City Council on March 11, 2013. SECTION 5. Severability. If any provision or clause of this Ordinance is held to be unconstitutional or otherwise invalid by any court of competent jurisdiction, such invalidity shall not affect other provisions of this Chapter, and clauses of this Chapter are declared to be severable. // // // // // // // // // // // // Not Yet Approved 11 130129 jb 0131056A SECTION 6. Effective Date. This Ordinance shall be effective on July 1, 2013. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Senior Asst. City Attorney City Manager ____________________________ Director of Public Works ____________________________ Director of Administrative Services Not Yet Approved 1 130410 jb 0131041 Attachment A Ordinance No. ______ Ordinance of the Council of the City of Palo Alto Amending Chapter 5.35 of the Palo Alto Municipal Code Regarding Retail and Food Service Establishment Checkout Bag Requirements The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Findings. The City Council finds as follows: (a) Single use plastic bags have environmental effects as many of these bags are conveyed across land or through storm drains into local creeks, the San Francisco Bay and into the Pacific Ocean. Studies have shown that 70% of the litter found in storm drains and at clean up events is plastic (bags, packaging, single‐use disposable products). (b) Plastic bags that enter the marine environment have been found to adversely impact many wildlife species that ingest or become entangled in them. Paper bags tend to break down faster and do not pose the same risks for ingestion and entanglement. (c) Eighty percent of ocean debris originates from land. Plastic debris does not completely biodegrade in the marine environment; instead plastics break down into smaller and smaller pieces, absorbing toxins, which in turn harm marine animals when they are mistaken for food. The Pacific Ocean contains a huge accumulation of plastic debris. Some scientists estimate that the density of plastic can be as great as one million pieces of plastic per square mile and plastic debris has increased over 100 fold in the past 40 years. (d) Plastic and paper checkout bags represent an unnecessary use of a nonrenewable resource. Reusable bags represent the sustainable alternative to single‐use bags of all types, because they consume less resources overall and produce less waste. (e) Even with the emphasis on recycling of plastics in the last several decades, the plastic bag recycling rate in California as of 2008 remains at approximately five percent or less, according to the California Integrated Waste Management Board. (f) The City discourages the use of all types of single‐use checkout bags, because single‐use bags consume more resources and produce more waste than reusable bags. However, plastic bags are the least desirable type of all single‐use bags, because they consume a nonrenewable resource, degrade very slowly and harm creek and marine life. It is the City's intent to address all types of single‐use checkout plastic bags, including compostable and biodegradable ones, because all types consume non‐renewable resources and can harm creek and marine life. Not Yet Approved 2 130129 jb 0131041 (g) Expanding the current ordinance supports the City’s goal of Zero Waste by 2021 by reducing distribution of both plastic and paper bags. Ordinance expansion would reduce residuals contamination in municipal compost. A majority of compost contamination is comprised of plastic film and must be disposed as garbage. (h) Paper bags are more successfully recycled than plastic bags given current technologies. Therefore, diverting paper bags from landfill disposal is more attainable than it is for plastic bags. However, recyclable paper checkout bags do cause negative environmental impacts such as air, land and water pollution during resource extraction, manufacturing, transportation and ultimately in their disposal as even recycling paper bags consumes energy and causes pollution. (i) Reusable bags are considered worldwide to be the best option to reduce waste and litter, protect wildlife and conserve resources. Reusable bags have lower associated greenhouse gas emissions than single‐use bags and are readily available and affordable for the customer. (j) In 2012, despite an existing ban on single use plastic bags in grocery stores over 10,000 square feet, approximately 350 bags were found in the lower Palo Alto watershed. 130 of these bags were found on streets and in storm drains by a small number of volunteers during a one month tally, and an additional 220 plastic bags were removed from Adobe and Matadero Creeks during annual volunteer creek clean‐up events. (k) Given public awareness of the harm caused by single‐use plastic bags, one‐third of Palo Alto food establishments already use paper bags exclusively to carry home food, and have voluntarily eliminated the use of single‐use plastic bags without harm or public complaint. This includes the full range of food establishments from take‐out to fine dining establishments. (l) Despite the positive impacts of the existing ordinance approximately fifty‐seven percent of combined grocery store and pharmacy checkout bags in Palo Alto are single‐use paper or plastic based on a 2012 survey. Therefore, further incentives are needed to decrease single‐ use checkout bags. (m) The City has given away more than 14,500 reusable checkout bags to Palo Alto residents to encourage their use. (n) Many cities in Santa Clara, San Mateo, San Francisco and Alameda counties in connection with single‐use bag ordinances have initiated charges on single‐use paper bags in order to offset the cost to retailers of this program and as an additional incentive for customers to use their own reusable bags. (o) Local cities are required by the Municipal Regional Permit (MRP) for storm water to reduce trash by 40% by 2014, 70% by 2017 and 100% by 2022, with cities Not Yet Approved 3 130129 jb 0131041 implementing plastic bag bans as one of the actions to achieve these requirements. Palo Alto’s short term trash reduction plan complying with the MRP is claiming a 6% reduction of trash with the current single use bag ban, however, cities with more comprehensive bans are claiming 12% reduction, assisting them in meeting this strict requirement in a cost‐effective manner. (p) Due to the negative environmental effects and the need to comply with regulatory requirements to reduce trash, it is therefore in the best interest of public health, safety, and welfare to restrict single‐use bag distribution within the boundaries of the City of Palo Alto. (q) It is the intent of the Council to reduce negative impacts of single‐use checkout bags through implementation of this Ordinance by continuing the requirement for grocery stores to not provide single‐use plastic checkout bags and expanding that requirement to include all Retail Service and Food Service Establishments, while implementing a charge to allow customers to purchase a single‐use paper bag or a reusable bag if the customer wants a bag and has not brought a reusable bag. SECTION 2. Sunset of Ordinance 5032. Ordinance 5032 adding Chapter 5.35 (Retail Sales – Requirement for Paper Checkout Bags and Limited Prohibition on Single‐Use Plastic Checkout Bags) to the Palo Alto Municipal Code shall sunset and be of no further force and effect on June 30, 2013. SECTION 3. New Provisions. Effective July 1, 2013, Ordinance 5032 shall be superseded by a new Chapter 5.35 to read as follows: Chapter 5.35 Retail and Food Service Establishment Checkout Bag Requirements. Sections: 5.35.010 Definitions 5.35.020 Types of Checkout Bags Permitted at Retail Service and Food Service Establishments 5.35.030 Checkout Bag Charge for Paper or Reusable Bags at Retail Service Establishments. 5.35.040 Operative Dates 5.35.050 Exemptions 5.35.060 Severability 5.35.070 Penalties Not Yet Approved 4 130129 jb 0131041 5.35.010 Definitions. (a) “Checkout Bag” means a bag that is provided by a Retail Establishment at the checkstand, cash register, point of sale or other point of departure for the purpose of transporting food or merchandise out of the establishment. Checkout Bags do not include Produce or Product bags as defined in this Chapter. (b) “Food Service Establishment” means any establishment, located or providing food within the City of Palo Alto, which provides prepared and ready‐to‐consume food or beverages, for public consumption including but not limited to any Retail Service Establishment, eEating and drinking service (as defined in Chapter 18), Take‐out service (as defined in Chapter 18), supermarket, delicatessen, restaurant, food vendor, sales outlet, shop, cafeteria, catering truck or vehicle, cart or other sidewalk or outdoor vendor or caterer which provides prepared and ready‐to‐ consume food or beverages, for public consumption . (c) “Produce or Product Bag” means: i. any bag without handles provided to a customer to carry produce meats, bulk food, or other food items to the point of sale inside a store; ii. to hold prescription medication dispensed from a pharmacy; iii. to protect food or merchandise from being damaged or contaminated by other food or merchandise when items are placed together in a Reusable bag or Recyclable paper checkout bag; iv. a bag without handles that is designed to be placed over articles of clothing on a hanger. (d) “Recyclable Paper Checkout Bag” means a paper bag that meets one of the following criteria: i. Pre‐Approved Standard. A paper bag that meets all of the following requirements: 1. contains no old growth fiber; 2. is 100% recyclable overall and contains a minimum of 40% post‐ consumer recycled content; 3. displays the word “Recyclable” on the outside of the bag; and 4. the manufacturer, the location (country) where manufactured and the percentage of post‐consumer recycled content in an easy‐ to‐read size font. ii. Alternative Materials. The Superintendent Director of Public Works or his or her designee is authorized to approve alternate materials or testing methods meeting this section’s requirements provided that the Superintendent Director or designee finds that the proposed materials or testing standards satisfactorily complyies with the intent, quality and Not Yet Approved 5 130129 jb 0131041 effectiveness in order to meet the purposes of this Chapter. The particulars of any approval made by the Director of Public Works or his or her designeeSuperintendent under this subsection shall be entered upon the records of the Public Works Department and a signed copy shall be furnished to the applicant. iii. Alternative Standard. Any other published uniform Recyclable Paper Bag standard as approved by the Director of Public Works or his or her designeeSuperintendent.. (e) “Retail Service Establishment” means any establishment providing retail sale, rental, service, processing, or repair of items primarily intended for consumer or household use, including but not limited to the following: groceries, meat, vegetables, dairy products, baked goods, candy, and other food products; liquor and bottled goods, household cleaning and maintenance products; drugs, cards, and stationery, notions, books, tobacco products, cosmetics, and specialty items; flowers, plants, hobby materials, toys, household pets and supplies, and handcrafted items; apparel, jewelry, fabrics, and like items; cameras, photography services, household electronic equipment, records, sporting equipment, kitchen utensils, home furnishing and appliances, art supplies and framing, arts and antiques, paint and wallpaper, carpeting and floor covering, interior decorating services, office supplies, musical instruments, hardware and homeware, and garden supplies; bicycles; mopeds and automotive parts and accessories (excluding service and installation); cookie shops, ice cream stores and delicatessens. (f) “Reusable Checkout Bag” shall mean a bag with handles that is specifically designed and manufactured for multiple reuse which can be washed or wiped clean and meets one all of the following criteria: i. Pre‐approved materials. The Bags with a capacity of 15 liters or greater must meet bag meets all of the following requirements: 1. To confirm durability, bags must meet EcoLogo ATP‐001 standards for durability (including future amendments or any successor legislation): a. Capacity Test ‐ minimum of 15 liters b. Dynamic Test ‐ minimum of 5 sets of 300 cycles (1,500 cycles total). 2. To confirm bag thickness ofIs 2.25 mils thick or greater, as bags will be measured according to ASTM D6988‐08 or ISO 4593:1993 or ISO 4591:1992 standards (for embossed film) (including future amendments or any successor legislation). Not Yet Approved 6 130129 jb 0131041 a.3. To Cconfirm the absence of heavy metals causing environmental hazards upon entering the solid waste stream, Heavy Metal Content: State methods are to be used for preparing and for testing samples of each unique bag component following the Model Toxics in Packaging Legislation, and; a.State methods used for preparing and for testing samples of each unique bag component following the Model Toxics in Packaging Legislation, and; 4. Is either: a. labeled in an easy‐to‐read sized font with the name of the manufacturer, the country of origin where manufactured, the material from which it is manufactured, the percentage of post‐consumer recycled content, and a statement that the bag does not contain heavy metals, or b. as an alternative, information about the manufacturer, the country of origin where manufactured, the material from which the bag is manufactured, the percentage of post‐ consumer recycled content, and a statement that the bag does not contain heavy metals can be provided through the reporting requirements set forth under 5.35.030 (d). ii. Reusable bags that with a capacity of less than 15 liters must meet all of the following requirements: 1. Is 2.25 mils thick or greater as measured according to ASTM D6988‐08 or ISO 4593:1993 or ISO 4591:1992 standards (for embossed film) (including future amendments or any successor legislation). 2. To Cconfirm the absence of heavy metals causing environmental hazards upon entering the solid waste stream,Heavy Metal Content: State methods are to be used for preparing and for testing samples of each unique bag component following the Model Toxics in Packaging Legislation, and; 3. Is either: a. labeled in an easy‐to‐read sized font with the name of the manufacturer, the country of origin where manufactured, the material from which it is manufactured, the percentage of post‐consumer recycled content, and a statement that the bag does not contain heavy metals, or b. as an alternative, information about the manufacturer, the country of origin where manufactured, the material from which the bag is manufactured, the percentage of post‐ consumer recycled content, and a statement that the bag Not Yet Approved 7 130129 jb 0131041 does not contain heavy metals can be provided through the reporting requirements set forth under 5.35.030 (d). ii.iii. Alternative Materials. The Director of Public Works or his or her designeeSuperintendent is authorized to approve alternate materials or testing methods meeting this section’s requirements provided that the Superintendent Director or the designee finds that the proposed materials or testing standards satisfactorily complies with the intent, quality and effectiveness in order to meet the purposes of this Chapter. The particulars of any approval made by the Superintendent Director under this subsection shall be entered upon the records of the Public Works Department and a signed copy shall be furnished to the applicant. iii.iv. Alternative Standard. Any other published uniform bag standard as approved by the SuperintendentDirector of Public Works or his or her designee. (g) “Single‐Use Plastic Checkout Bag means any bag made predominately of plastic derived from natural gas, petroleum or a biologically‐based source, such as corn or other plant sources, which is provided to a customer at the point of sale which does not meet the definition of a Reusable Checkout Bag. "Superintendent" means the Assistant Director of Environmental Services for Public Works, his or her designee or such other person as may be designated by the City Manager. 5.35.020 Types of Checkout Bags Permitted at Retail Service and Food Service Establishments (a) Retail Service Establishments within the City of Palo Alto shall provide or make available to a customer only Reusable Bags or Recyclable Paper Checkout Bags for the purpose of carrying away goods or other materials from the point of sale, subject to the terms of this Chapter. i. Single‐Use Plastic bags exempt from the ordinance include those integral to the packaging of the product, Produce or Product Bags, newspaper bags, door‐hanger bags, or bags sold in packages containing multiple bags intended for use as garbage, pet waste or yard waste bags. ii. Food Service Establishments within Retail Stores must comply with those requirements listed under 5.35.020(b); Food Service Establishments within Retail Service Establishments do not need to comply with the broader Retail Service Establishments requirements of this ordinance. ii.iii. Farmers Markets may provide Produce or Product Bags to hold produce or bulk items. Checkout bag charges for these bags are not required at Not Yet Approved 8 130129 jb 0131041 Farmers Markets unless Checkout Bags used to hold Produce or Product Bags are provided. (b) Effective November 1, 2013, Food Service Establishments shall provide or make available to a customer only Recyclable Paper Checkout Bags or Reusable Bags, at their discretion, for the purpose of carrying away goods or other materials from the point of sale, subject to the terms of this Chapter. i. Produce or Product Bags without handles may be used at Food Service Establishments to hold containers of food items that are free liquids such as soups or stews that might be susceptible to spilling. (c) The City of Palo Alto encourages, but does not require in‐store public education and encouragement to customers about the use of reusable bags. In‐store education for Retail Service and Food Service Establishments is available at www.cityofpaloalto.org/plastics. (d) Nothing in this Chapter prohibits customers from using bags of any type that they bring to the establishment themselves or from carrying away goods that are not placed in a bag at point of sale, in lieu of using bags provided by the establishment. (e) A Retail Service or Food Service Establishment may provide a Reusable Bag at no charge if it is distributed as part of an infrequent and limited time promotion. Infrequent and limited time promotions shall not exceed a total of 14 days in any consecutive 12 month period. 5.35.030 Checkout Bag Charge for Paper or Reusable Bags at Retail Service Establishments. (a) Effective July 1, 2013, no Retail Service Establishment shall provide a Recyclable Paper Checkout Bag or Reusable Bag to a customer at the point of sale, unless the store charges the customer a checkout bag charge of at least ten cents ($0.10) per bag to cover the costs of compliance with the ordinance, the actual costs of providing recyclable paper bags, educational materials or other costs of promoting the use of reusable bags. Effective, July 1, 2014, no Retail Service Establishment shall provide a Recyclable Paper Checkout Bag or a Reusable Bag to a customer at the point of sale, unless the establishment charges the customer a checkout bag charge of at least twenty‐five cents ($.25) per bag. (c)(b) Retail Service Establishments shall establish a system for informing the customer of the charge required under this section prior to completing the transaction. This system can include store Clerks inquiring whether customers who do not present their own reusable bag at point of checkout want to purchase a checkout bag. Not Yet Approved 9 130129 jb 0131041 (d)(c) The checkout bag charge shall be separately stated on the receipt provided to the customer at the time of sale and shall be identified as the Checkout Bag Charge. Any other transaction fee charged by the Retail Service in relation to providing a Checkout Bag shall be identified separately from the Checkout Bag Charge. The checkout bag charge may be completely retained by the Retail Service and used for public education and administrative enforcement costs. (e)(d) Retail Services Establishments shall keep complete and accurate records of the number andor the dollar amount collected from Recyclable Paper and Reusable Checkout Bags sold each month and provide specifications demonstrating that paper and reusable bags meet the standards set forth in Section 5.35.020 using either the electronic or paper reporting format required by the City.. This information is required to be made available to City staff upon request up to three times annually and must be provided within seven days of request. Reporting false information, including information derived from incomplete or inaccurate records or documents, shall be a violation of the Ordinance. Records submitted to the City must be signed by a responsible agent or officer of the establishment attesting that the information provided on the form is accurate and complete. 5.35.040 Delayed Implementation for Food Service Establishments. All Food Service Establishments shall comply with the requirements of Section 5.35.020 of this Ordinance beginning November 1, 2013. 5.35.050 Exemptions. (a) Undue Hardship. The City Manager, or his or her designee, may exempt a Retail Service or Food Service Establishment from the requirements of this Chapter for a period of up to one year, upon sufficient evidence by the applicant that the provisions of this Chapter would cause undue hardship. An undue hardship request must be submitted in writing to the City. The phrase “undue hardship” may include, but is not limited to, the following: i. Situations where there are no acceptable alternatives to Single‐Use Plastic Checkout Bags for reasons which are unique to the Retail Service or Food Service Establishment. ii. Situations where compliance with the requirements of this Chapter would deprive a person of a legally protected right. (b) Retail Service Establishments shall not enforce the 10 cent or 25 cent store charge for customers who participatinge in the California Special Supplemental Food Program for Women, Infants, and Children, or in the CalFresh, or in the Not Yet Approved 10 130129 jb 0131041 Supplemental Nutrition Assistance Program (SNAP–formerly food stamps). This provision will expire on June 30, 2014. 5.35.060 Severability. If any provision or clause of this Chapter is held to be unconstitutional or otherwise invalid by any court of competent jurisdiction, such invalidity shall not affect other provisions of this Chapter, and clauses of this Chapter are declared to be severable. 5.35.070 Penalties. (a) Anyone violating or failing to comply with any of the requirements of this Chapter shall be guilty of an infraction as set forth in Chapter 1.08 of the Palo Alto Municipal Code. (b) Each violation of this Chapter shall be considered a separate offense. (c) The remedies and penalties provided in this Section are cumulative and not exclusive. SECTION 4. CEQA. The Department of Public Works prepared an Environmental Impact Report for this Ordinance, which confirmed that the Ordinance does not have the potential to result in a significant impact on the environment and results in only beneficial or less than significant impacts. The EIR was available for public review beginning November 15 through December 31 and was certified by the City Council on March 11, 2013. SECTION 5. Severability. If any provision or clause of this Ordinance is held to be unconstitutional or otherwise invalid by any court of competent jurisdiction, such invalidity shall not affect other provisions of this Chapter, and clauses of this Chapter are declared to be severable. // // // // // // Not Yet Approved 11 130129 jb 0131041 SECTION 6. Effective Date. This Ordinance shall be effective on July 1, 2013. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Senior Asst. City Attorney City Manager ____________________________ Director of Public Works ____________________________ Director of Administrative Services CITY OF PALO ALTO CITY COUNCIL EXCERPT Page 1 of 14 Regular Meeting March 11, 2013 3. Certification of the Final Environmental Impact Report and Adoption of an Ordinance Amending Palo Alto Municipal Code Section 5.35 to Expand Plastic Bag Ban to Retail and Food Establishments, Require Retailers to Charge Fee for Paper Bag Use and Provision of Phased Implementation Council Member Berman recused himself as having a conflict, because he invested in a company that made reusable plastic bags. Julie Weiss, Environmental Specialist reported changes to the plastic bag Ordinance would assist with reducing plastic litter in creeks and the Bay. In the 1980s, the City required retail businesses to offer only paper bags or a choice between paper and plastic bags. Approximately five years ago, Staff implemented a Reusable Bag Task Force that recommended an Ordinance apply to all retail businesses, be implemented all at once, and require a charge for paper bags. Because of economic concerns, the Council prohibited the distribution of plastic bags at grocery stores and committed to extensive outreach to encourage use of reusable bags. Approximately 56 percent of people continued to use paper bags. Plastic litter remained a problem despite efforts to prevent litter and plastic pollution. Changes to the current Ordinance could address these problems. Staff proposed a prohibition of single-use plastic bags in all retail and food establishments and a charge of $0.10 to $0.25 for paper and reusable bags at retail businesses. The charge would drive behavior changes. Other jurisdictions saw reductions in bag usage when a fee was implemented. Staff proposed businesses show the bag charge on the receipt as another driver for behavior change. Stores should report bag sales in order to measure the impact of the Ordinance. Staff proposed updating the durability standards for reusable bags using the best standard available. By making these changes, approximately 26 million fewer single-use bags would be used by the end of the first year. In addition, these changes would assist the City with meeting storm water goals and Zero Waste goals. Staff proposed prohibiting plastic bags but not requiring a paper bag charge at restaurants, because the California Restaurant Association preferred not to utilize reusable bags at restaurants. In addition, restaurants could use product EXCERPT Page 2 of 14 City Council Meeting Excerpt: 3/11/13 bags for items that could spill. Both Malibu and Fairfax implemented this Ordinance and did not report any issues. An Environmental Impact Report (EIR) evaluated the proposed project and six alternatives. Utilizing conservative studies and assumptions, all alternatives were beneficial or had less than significant impacts for all evaluation categories. By the end of the second year, Staff anticipated a reduction of 26 million paper and plastic bags, and an 89 percent conversion from usage of paper bags to reusable bags. Staff recommended the Ordinance become effective for retail businesses on July 1, 2013, and for food service establishments on November 1, 2013. Messaging should be consistent with messaging of other cities. In making these changes, there would be a reduction of plastic litter and a reduction of environmental impacts from paper bags. Mayor Scharff returned to Council Members for questions and comments prior to public comments. Council Member Burt believed the Council's discussion after hearing public comments was better informed and resulted in an effective outcome. He inquired whether Council discussion was restricted. Mayor Scharff answered no. Council discussion would occur prior to and after public comment. Council Member Schmid inquired about Staff's recommendation not to use biodegradable bags. Ms. Weiss explained that compostable plastics did not breakdown in creek conditions. They were compostable only in hot, controlled municipal compost facilities. Use of compostable bags would not affect the problem. Council Member Schmid recalled a letter regarding use of paper bags. In response to the $0.25 charge for paper bags, households would purchase plastic bags to contain food and pet wastes, which would result in an increased number of plastic bags in landfills. That was not a green solution. Ms. Weiss explained the idea that bags would decompose in a landfill was not accurate. Essentially nothing biodegraded in a landfill due to the sealed environment. Alternatives to trash can liners and pet waste were produce and bread bags. If residents needed to purchase plastic bags, then the Ordinance would prevent the bags from being released into the environment. Council Member Schmid asked where biodegradable bags went after they were collected curbside in San Francisco. EXCERPT Page 3 of 14 City Council Meeting Excerpt: 3/11/13 Ms. Weiss stated the bags were taken to the composting facility. Council Member Schmid reported San Francisco was working on a system of Solano County farmers using biodegradable bags as part of soil. The City's proposed program would lead to plastic bags in landfill. Ms. Weiss was unsure whether San Francisco residents disposed of biodegradable bags as garbage, and would follow-up regarding San Francisco's process. Council Member Schmid believed the bags were placed in food waste carts. Ms. Weiss wanted to confirm San Francisco's process for compostable bags. Council Member Schmid asked if the City's trial garbage pickup of food waste included paper, but not plastic. Phil Bobel, Assistant Director of Environmental Services, replied yes. If the trial program expanded to the entire City, then residents would place compostable material in the green cart along with green yard trimmings. Staff would encourage the use of a compostable bag. For the trial area, waste would go to composting and would be separated from the green material. Council Member Schmid asked what was a compostable bag. Mr. Bobel explained it was similar to a biodegradable bag, but met a slightly different standard. Compostable meant ideally the bag would breakdown in the timeframe of normal compost. Council Member Schmid inquired whether the goal of garbage collection within a few years would be to use compostable bags. Mr. Bobel responded yes. Staff did not encourage residents to use compostable bags, because food scraps were not being composted. When food scraps were composted in the future, then the Council could reconsider this Ordinance to determine if compostable bags could play a larger role in composting. Residents in the pilot area could reuse compostable produce bags that some grocers were offering. Eventually he hoped residents would get a compostable produce bag at the grocer, fill it with food scraps, and place it in the green cart for composting. The City was not quite ready to link the two programs. EXCERPT Page 4 of 14 City Council Meeting Excerpt: 3/11/13 Council Member Schmid noted the Staff Report did not contain any of that information. He believed tonight's discussion would be an opportunity to prepare for the expiration of contracts with GreenWaste and Smart Station. Council Member Price requested the City Attorney comment on the Retail Food Code and its relationship to the proposed Ordinance. Molly Stump, City Attorney reported the State had the authority to determine that it would exclusively regulate an industry. The question was whether the State Legislature had done that by passing the Retail Food Code. The City received correspondence from an industry coalition asserting that the proposed Ordinance was preempted by the Retail Food Code. That issue was litigated at the trial court level in San Francisco. The Superior Court Judge determined that the State Code did not preempt the local regulation. The Court said the State Code focused on health and sanitation; the San Francisco plastic bag ban was an environmental regulation. The two could coexist harmoniously. The issue was appealed and would be addressed by the Court of Appeal. Council Member Price asked if there were different legal interpretations regarding this issue. Ms. Stump answered yes. The industry coalition maintained that State law prevented local regulation of restaurant use of plastic bags. The City's and other jurisdictions' position was that this type of regulation was lawful and not preempted by State law. Council Member Holman recalled a reference to bag usage decreasing from three to 0.3, and asked Staff to restate it. Ms. Weiss reported San Jose analyzed the impact of its Ordinance during the first year. The average number of bags used were three prior to the Ordinance. After implementation of the Ordinance with the $0.10 charge for paper bags in place, bag usage decreased to 0.3. Council Member Holman inquired whether bag usage decreased from three to 0.3 bags per week per person or per month per person. Ms. Weiss indicated per trip to the store. Council Member Holman referenced 5 percent or 1.3 million plastic bags came from food service establishments, and inquired whether that figure pertained solely to Palo Alto. EXCERPT Page 5 of 14 City Council Meeting Excerpt: 3/11/13 Ms. Weiss responded yes. Numbers were extrapolated from a study performed by the County of San Mateo. Council Member Holman asked if Staff could measure the impact of the bag charge on heightened awareness. Ms. Weiss inquired whether Council Member Holman meant the level of change created by a $0.10 charge versus a $0.25 charge. Council Member Holman stated that was one impact. A number of grocery stores not covered by the current Ordinance changed their practices with regard to bags. She inquired whether there was a means to gauge the impact on usage. Ms. Weiss noted Staff surveyed restaurants to determine that one-third of restaurants were using only paper products. Staff could perform the survey again with the same sample size at the end of one year with the $0.10 charge in place to determine if there had been any behavioral changes at restaurants. However, that would provide information about store behavior rather than individual behavior. Council Member Holman inquired whether requiring food service establishments to charge for plastic bags rather than prohibiting plastic bag usage was an option. Ms. Stump responded no. State law did not allow local jurisdictions to impose a fee on the use of plastic. Council Member Burt asked if State law allowed a charge for paper bags but not plastic bags. Ms. Stump answered yes. Council Member Burt believed the two goals for the Ordinance were preventing release of plastic litter into the environment and reducing landfill. Paper bags currently being used would go into paper recycling. He inquired about the net gain for the Zero Waste program by eliminating paper bags. Mr. Bobel agreed with his comments regarding the two goals. Although the City had recycling programs for paper and plastic bags, residents did not recycle all paper and plastic bags. A reusable bag was a good option to paper and plastic bags; therefore, it was logical to have an Ordinance to prohibit or restrict paper and plastic bag usage. EXCERPT Page 6 of 14 City Council Meeting Excerpt: 3/11/13 Council Member Burt stated the practical reality was residents would purchase plastic bags to replace paper bags as trash can liners. He asked what residents would use as trash can liners if they used only reusable bags when shopping. Mr. Bobel indicated Council Member Burt seized on the one legitimate complaint or criticism of Staff's proposal. An extremely small percentage of paper bags were used for trash can liners. Council Member Burt asked why Staff believed only an extremely small percentage of paper bags were reused. Mr. Bobel reported that was his personal experience. Council Member Burt felt there was a penalty amount between $0.10 and $0.25 that would encourage residents to obtain only the number of paper bags needed. Ms. Weiss noted the chief complaint was loss of free bags for use as trash can liners; however, bags were not really free. The Ordinance would require merchants to show the price of a bag on the receipt, and provide the option of not paying a charge or purchasing plastic trash can liners. Council Member Burt asked why consumers should pay $0.25 rather than $0.10. Mr. Bobel reported Staff attempted to strike a balance between having Palo Alto be a leader and being consistent with other cities. Most other cities charged $0.25. Retail businesses indicated inconsistent bag charges among cities were a problem. Council Member Burt did not understand the difficulty of different charges among cities for retail establishments. Mr. Bobel stated the public process indicated a consistent charge was important. Council Member Burt inquired whether pricing uniformity was as important as policy uniformity. Mr. Bobel responded yes. EXCERPT Page 7 of 14 City Council Meeting Excerpt: 3/11/13 Council Member Burt noted the Council had heard the rationale of incentivizing retail in Palo Alto in other issues. It was a question of striking a balance between that rationale and causing behavior change. Ms. Weiss reported a San Jose study estimated a $0.10 charge would cause about 65 percent of consumers to convert to reusable bags, and a $0.25 charge would cause approximately 89 percent to convert. Recent analysis confirmed those estimates. Council Member Burt believed an important second question was attitudinal change. At some point, the community could resent the imposition of a fee and, consequently, not support other issues. He requested Staff's rationale for delaying implementation of the fee for restaurants. Ms. Weiss explained the significant amount of Staff time devoted to education and compliance following adoption of the Ordinance was the reason for phasing implementation. Mayor Scharff agreed with Council Member Burt's comments. He inquired whether a $0.10 fee could be imposed first, Staff could determine behavior changes, and then the Council could consider implementing an increase to $0.25. He did not believe there was consistency among cities. Ms. Weiss reported largely Ordinances were consistent, but there were slight variations within Ordinance. Mr. Bobel indicated changing implementation was within the Council's prerogative. Staff could return at a later date with a second tier. Mayor Scharff noted Staff's analysis lacked the grocery stores' incentive of keeping funds from the bag charge. Mr. Bobel reiterated that grocers stated they wanted consistency among cities. Mayor Scharff inquired whether a compostable bag was prohibited under the proposed Ordinance . Ms. Weiss responded yes. No plastic bags would be allowed for distribution. The proposed Ordinance would allow purchase of plastic reusable bags, and would change the durability standard for reusable bags. Mayor Scharff assumed using compostable bags was environmentally friendly, and asked if that was true. EXCERPT Page 8 of 14 City Council Meeting Excerpt: 3/11/13 Ms. Weiss answered no. Any bag that was used to line a trash can would go to the landfill. Neither bag provided a benefit once it was in the landfill. Mayor Scharff stated if the trial garbage program was successful, then compostable bags would go to the composting facility. Ms. Weiss noted plastic bags currently distributed were not compostable. Mr. Bobel reported only produce bags were compostable. Mayor Scharff inquired whether bags were compostable, biodegradable, or neither. Ms. Weiss replied neither. Mr. Bobel stated bags currently being used were plastic. Eventually food scraps would be placed in compostable plastic bags; however, Staff was struggling with the type of container to be used for other kinds of garbage. Mayor Scharff inquired about the meaning of dynamic tests as part of durability standards. Ms. Weiss explained a dynamic test measured durability using simulation of actual usage. Mr. Bobel stated the bag was tested through stress. Mayor Scharff asked if durability standards would prevent usage of low- quality bags. Ms. Weiss indicated durability standards would allow consumers to move away from low-quality bags. Mayor Scharff inquired whether the low-quality bag Ms. Weiss demonstrated met EcoLogo standards. Ms. Weiss did not believe it would. Mayor Scharff inquired whether the Ordinance would require that bags indicate they met EcoLogo standards. Ms. Weiss reported the proposed Ordinance required quite a bit of information to be placed on the bottom of bags. EXCERPT Page 9 of 14 City Council Meeting Excerpt: 3/11/13 Mayor Scharff referenced the information required to be printed on bags, but did not find a requirement for the EcoLogo standard. Ms. Weiss noted that was not required but could be included as a requirement. Mayor Scharff expressed concerns about the amount of information required to be printed on bags, stating that would not benefit anyone and could cause less reusing of bags. Ms. Weiss reported that requirement was based on recommendations from a reusable bag manufacturer. Other bags could be sold in a store, but not at point of sale because behavior change was less likely to occur. Mayor Scharff inquired whether Staff had a reason not to delete the requirement for information on the bottom of the bag. Mr. Bobel indicated Staff again was attempting to be consistent with other communities' requirements. The Council could remove that requirement. This requirement fell under Staff's authorization to change an Ordinance where the change was not critical to the function of the provision. Staff would work with stores to meet substantive requirements but not labeling requirements for bags. Mayor Scharff inquired whether retail stores could distribute paper bags smaller than 15 liters in capacity. Ms. Weiss reported the EcoLogo standard required the 15-liter bag size. Under the proposed Ordinance, retailers could distribute any size of paper bag for the indicated fee. Mr. Bobel believed it was best to use standard definitions whenever possible, and the 15-liter capacity was part of the EcoLogo standard definition. Council Member Burt inquired about the benefit of a plastic bag being recycled as opposed to a cloth bag being placed in the trash. Ms. Weiss explained most plastics could only be recycled once, and then placed in the landfill. It was beneficial to recycle once; however, recycling was not a long-term solution. Mr. Bobel noted cloth could be donated to non-profit organizations. EXCERPT Page 10 of 14 City Council Meeting Excerpt: 3/11/13 William Rosenberg spoke to the Council in September 2012 regarding an extension of the plastic bag ban, and supported the proposed Ordinance. Single-use bags were not currently available that did not contribute to environmental pollution. The only remedy was to change the culture to reuse of bags through external motivation. Richard Gertman, Board Member of Californians Against Waste, reported the organization committed itself to reducing the amount of disposable single- use items in the environment. He supported programs to recover and promote reusable bags. Banning single-use bags would provide a significant environmental benefit. Javier Gonzalez, California Restaurant Association, opposed the ban because reusable bags lent themselves to cross-contamination and food-borne illnesses. Other jurisdictions in the area exempted the restaurant industry for those reasons. Plastic bags were better for holding multiple sizes of containers and for containing spills. He asked the Council to exempt the restaurant industry. Bruce Wolfe, Executive Officer of the San Francisco Bay Regional Water Board, reported the Water Board's 2009 Region-Wide Storm Water Permit required agencies to reduce trash in storm water by 40 percent by 2014, 70 percent by 2017, and 100 percent by 2022. The proposed Ordinance was a phased approach which would assist the City in reaching trash reduction requirements. Phasing out products regularly found in runoff was an effective method to engage the public. Robert Berman, Chairman of Roplast Industries and Member of the Reusable Bag Task Force, applauded Staff's efforts to promote the use of reusable grocery bags. The proposed Ordinance would encourage the use of reusable bags; however, expanding the ban to all retail could increase paper bag usage with the same negative environmental impact. For most non-food retailers, it would be logical to provide small paper bags rather than large reusable bags, which would undermine the City's goal of promoting reusable bags. He recommended retailers be allowed to sell reusable bags smaller than 30 inches in combined width and length without requiring the EcoLogo certification as long as bags met all other requirements. Peter Drekmeier felt the problems caused by plastic bags outweighed their convenience. The City made a great deal of progress since 2009, but the next step was needed. Palo Alto would be a part of changing the cultural norm. EXCERPT Page 11 of 14 City Council Meeting Excerpt: 3/11/13 Trish Mulvey supported the proposed Ordinance. Allowing restaurants to use plastic bags for liquid items addressed concerns of the California Restaurant Association. Currently, very little household trash needed to be placed in trash cans with liners. She preferred different sizes of reusable bags. Samantha Meyer, Zero Waste Program Coordinator at Clean Water Action, encouraged the Council to support the Ordinance, because it considered source reduction. Currently in Palo Alto, 24 percent of customers used reusable bags; whereas, in cities with bag fees, 62-94 percent of customers used reusable bags. Cedric de La Beaujardiere supported the Ordinance. As a user of reusable bags, he subsidized other shoppers' use of plastic and paper bags. Palo Alto's Ordinance should be consistent with other cities' Ordinances. He had used his own containers at restaurants for many years, had not been ill as a result, and often received a discount from the restaurant. Robert Moss stated many people used store bags as trash can liners, and the Council should consider some means of allowing this usage. He suggested no bag fee be implemented for a year or two in order to determine usage of reusable bags and to allow the City to remain competitive with other cities. The Council should be very careful about its message to the public regarding implementation of an Ordinance. Jason Lundgaard, Manager of State and Local Government Affairs for Apple, encouraged the Council to remove the requirement to label bags. The labeling requirement was unnecessary and counterproductive. Mike Francois suggested implementing incentives for returning plastic bags. Plastic bags were unsightly litter. He appreciated the Council's and public's comments. Council Member Holman asked why delicatessen was included as both retail service establishment and food service establishment. Ms. Weiss explained delicatessen included food bars in grocery stores and stand-alone businesses. Council Member Holman noted supermarket was included as a food service establishment. Ms. Weiss indicated that language could be streamlined, because supermarket was included under retail establishment. EXCERPT Page 12 of 14 City Council Meeting Excerpt: 3/11/13 Council Member Holman requested definitions of sales outlet and shop under food service establishment. Mr. Bobel reported Staff used existing definitions for this portion of the Ordinance, and attempted to include any type of business that might sell food. Council Member Holman noted the definition of superintendant was the Assistant Director for Environmental Services, and inquired why Staff utilized different names for the same position. Mr. Bobel indicated Staff utilized superintendant to link the proposed Ordinance with an existing Ordinance and existing structure. The Council could direct Staff to clarify that language within the Ordinance. Council Member Holman asked if Staff had a suggestion for that change. Mr. Bobel agreed one word would be better. Staff would need to review and revise the entire proposed Ordinance. Council Member Price noted a one-year exemption for participants in State or Federal supplemental food programs, and inquired whether Staff would monitor the exemption. Ms. Weiss indicated Staff had a reporting requirement for the number of people using bags under the exemption. MOTION: Council Member Price moved to certify the Final Environmental Impact Report and adopt the proposed Retail and Food Service Establishment Checkout Bag Requirements Ordinance as proposed by Staff. MOTION FAILED DUE TO LACK OF SECOND MOTION: Council Member Burt moved, seconded by Mayor Scharff to approve Staff recommendations to certify the Final Environmental Impact Report and adopt the proposed Retail and Food Service Ordinance, establish the Checkout Bag Requirements Ordinance as proposed by Staff, with the following amendments to the proposed Ordinance: 1) Chapter 5.35, Section 5.35.010 Definitions, subsection (f)i Pre-Approved Materials to allow smaller reusable bags; 2) not require EcoLogo label indicated in Subsection (d)i Pre- Approved Standard, Numbers 3 and 4; and 3) Section 5.35.030, Section (b) to make the fee for paper bags 10 cents. Staff will return to Council in 18- 24 months for review of pricing policy, and this item will return as a first reading of the amended Ordinance on the Consent Agenda. EXCERPT Page 13 of 14 City Council Meeting Excerpt: 3/11/13 Council Member Burt believed these were minor modifications in an attempt to strike a balance between a progressive program and a practical program. Mayor Scharff felt flexibility for smaller bags was important. He inquired whether Staff was directed to review the proposed Ordinance for consistency regarding the use of superintendant. Council Member Burt answered that term and any other inconsistency. Ms. Stump reported the Agenda Item would return with a first reading of the Ordinance on the Consent Agenda, followed by a second reading on the Consent Agenda. Council Member Schmid agreed with banning plastic bags and placing a $0.10 charge on paper bags. A $0.25 charge would create an incentive for residents to purchase plastic bags for household use, which was counterproductive. Palo Alto residents would be more likely to convert with smaller incentives. AMENDMENT: Council Member Holman moved to eliminate food service establishments from the Ordinance. AMENDMENT FAILED DUE TO LACK OF SECOND Council Member Holman suggested supermarkets be included under retail service establishment. Mr. Bobel indicated Staff would carefully review the Ordinance for Council Member Holman's prior suggestions. Council Member Holman suggested farmers' market should be added in the appropriate location. Ms. Weiss indicated farmers market was included at the bottom of page 6. Council Member Holman inquired whether farmers' market should be included in the definitions of retail service or food service establishments. Mr. Bobel did not want to include farmers' market, unless the Council directed otherwise. Council Member Price felt the Ordinance was consistent with the community's values and beliefs. She preferred the discussion of a fee EXCERPT Page 14 of 14 City Council Meeting Excerpt: 3/11/13 increase return to the Council in less than 18-24 months. Because of the community's disposable income, she did not believe there would be resistance to a $0.25 fee. MOTION PASSED: 5-0 Berman not participating, Klein, Kniss, Shepherd absent City of Palo Alto (ID # 3459) City Council Staff Report Report Type: Consent Calendar Meeting Date: 4/15/2013 City of Palo Alto Page 1 Council Priority: Environmental Sustainability Summary Title: Recycled Water Coalition Memorandum of Agreement Title: Recommendation to Authorize the City Manager to Execute the Second Amended and Restated Memorandum of Agreement with the Bay Area Recycled Water Coalition to Pursue Federal Legislative Efforts Related to Recycled Water Projects From: City Manager Lead Department: Utilities Recommendation Staff recommends that Council: Authorize the City Manager or his designee to execute the Second Amended and restated Memorandum of Agreement (MOA) with the Western Recycled Water Coalition (WRWC) for federal legislative efforts to secure a grant under Title XVI of the Reclamation Wastewater and Ground Water Study and Facilities Act of 1992. Executive Summary The City of Palo Alto is pursuing federal grant funding opportunities for a future recycled water project to serve the Stanford Research Park. To participate with the other members of the recycled water coalition in the regional effort to secure grant funding, the City executed the original MOA in May 2008. The MOA defines the relationship between the projects, including grant funding allocation, advocacy and administrative costs, membership, and termination. Since execution of the original MOA, the coalition completed one amendment to address minor issues. As the coalition has evolved over time, the MOA needs additional minor changes. Background Title XVI of the 1992 Central Valley Improvement Act (Public Law 102-575) directed the U.S. Bureau of Reclamation to form a partnership with Bay Area water and wastewater agencies. The purpose of the partnership is to study regional opportunities to maximize water recycling throughout the region. The BARWC program started in 1992 with a coalition of 17 agencies. City of Palo Alto Page 2 The Palo Alto Regional Water Quality Control Plan (RWQCP) joined the Bay Area Recycled Water Coalition (BARWC) in 1992 and has remained a member ever since. The RWQCP joined BARWC to ensure recycled water projects sourced from the RWQCP can qualify for Federal grants. Beginning with the RWQCP’s collaboration with the City of Mountain View on the Mountain View recycled water project, the City sought Title XVI grant funding, and ultimately succeeded in securing federal authorization for a $5 million grant. In order to formalize the relationship with the BARWC members regarding future appropriations and other costs, the City executed the original MOA in May 2008 (CMR 294:08). The City of Mountain View and the RWQCP completed the Mountain View recycled water project in 2009. In August 2001, BARWC made minor changes to the MOA in the First Amended and Restated MOA, which was approved by Council in August 2011 (Staff Report 1887). The City is evaluating an extension to the recycled water distribution system to provide recycled water to users in the Stanford Research Park. The project to serve the Stanford Research Park is currently seeking authorization for $8.25 million in Federal Title XVI grants. Discussion The original MOA and first amendment have functioned well, but the evolution of BARWC and the regional Title XVI program requires additional minor adjustments to the MOA. In particular, the following changes are required: The coalition name, currently the Bay Area Recycled Water Coalition, will be changed to the Western Recycled Water Coalition; Some previous history and member details have been deleted for clean-up purposes; Dates and deadlines have been modified to provide flexibility for membership changes, upon approval by the majority of participating agencies; and References to Bay Area Clean Water Agencies (BACWA) and its role have been deleted to reflect how the coalition actually operates (the lead agency performs these functions). The original MOA included a role for BACWA, a joint powers agency formed by the five largest wastewater treatment facilities in the Bay Area. The second amendment removes all reference to BACWA to reflect the fact the WRWC is now an independent entity capable of accomplishing goals and objectives without additional involvement from BACWA. The other changes are straightforward administrative adjustments to the agreement. Resource Impact The execution of the amended MOA will not result in additional resource requirements from the City. Continued membership in WRWC increases the likelihood that the City will receive federal funding for extending the recycled water distribution system. Without regional cooperation, the project is unlikely to get sufficient funding to make the project viable. Policy Implications City of Palo Alto Page 3 Activities that promote the use and expansion of recycled water are consistent with Council- adopted Water Integrated Resource Plan Guideline #3: “Actively participate in development of cost-effective regional recycled water plans.” Environmental Review The City of Palo Alto is the lead agency under the California Environmental Quality Act (CEQA) for the recycled water project to serve the Stanford Research Park. In addition, the Bureau of Reclamation is the lead agency for the project under the National Environmental Policy Act (NEPA). The City is currently collaborating with the Bureau of Reclamation to prepare a joint CEQA/NEPA document for the project. Preparation of the Environmental Impact Report is currently underway. The City’s execution of the MOA does not meet CEQA’s definition of a “project” under Public Resources Code Section 21065, thus no environmental review is required. Attachments: Attachment A: Memorandum of Agreement (PDF) Page 1 of 31 Second Amended and Restated Western Recycled Water Coalition Memorandum of Agreement February 14, 2013 SECOND AMENDED AND RESTATED MEMORANDUM OF AGREEMENT WESTERN RECYCLED WATER COALITION FEDERAL LEGISLATIVE EFFORTS A Memorandum of Agreement was originally made and executed on August 25th, 2008, by and between the City of Mountain View; City of Palo Alto; City of Redwood City; City of San Jose; the Delta Diablo Sanitation District (“DDSD”); North Coast County Water District; Santa Clara Valley Water District (“Participating Agencies”), and the Bay Area Clean Water Agencies (“BACWA”). This Memorandum of Agreement provides for the addition of new parties to the agreement upon the approval of a majority of the Participating Agencies and execution of the membership addendum. The Participating Agencies and BACWA executed the first Amended and Restated Memorandum of Agreement, effective June 30, 2011, which created a new category of parties to this Restated Agreement called Associate Participants; allowed investor owned water utilities regulated by the California Public Utilities Commission to become Participating Agencies and/or Associate Participants; shared costs for the Lead Agency’s administrative expenses incurred to provide services for BARWC; and revised the cost sharing formula for Participating Agency costs for federal advocacy. The Participating Agencies now desire to amend and restate the June 30, 2011 First Amended and Restated Memorandum of Agreement by entering into this Second Amended and Restated Memorandum of Agreement effective December 30, 2012 (“Restated Agreement”), which expands eligibility to public agencies and Investor‐Owned Water Utilities located in the western United States; and changes the coalition name from Bay Area Recycled Water Coalition (BARWC) to Western Recycled Water Coalition (WRWC). It is the intent of the Parties that this Restated Agreement replace the First Amended and Restated Memorandum of Agreement that became effective on June 30, 2011. RECITALS 1. WHEREAS, Title XVI of Public Law 102‐575, also known as the Reclamation Wastewater and Groundwater Study and Facilities Act of 1992 (“Title XVI”) authorized a feasibility study of the potential for development of demonstration and permanent facilities to reclaim water in the San Francisco Bay Area, bringing Bay Area agencies together to study opportunities to use recycled treated wastewater for beneficial uses; and authorized the planning, design and construction for the San Jose Water Reclamation and Reuse Program; and 2. WHEREAS, the Bay Area Recycled Water Master Plan, completed in 1999, identified opportunities to use 125,000 acre‐feet per year (AF/yr) by 2010, and 240,000 AF/yr by 2025; and 3. WHEREAS, Bay Area agencies have invested nearly $300 million of local funds in water recycling projects, and many more projects are ready to be built; and 4. WHEREAS, federal funding is essential to support these highly leveraged, locally managed, projects to help ensure the security of water supplies for years to come; and Page 2 of 31 Second Amended and Restated Western Recycled Water Coalition Memorandum of Agreement February 14, 2013 5. WHEREAS, Title XVI also provides a program for Federal participation (through cost sharing) in specific water reuse projects up to certain amounts specified in the Act; and 6. WHEREAS, Participating Agencies have identified 8 projects for which they wish to seek near‐term federal funding; and 7. WHEREAS, Participating Agencies anticipate identifying future projects for which they may wish to secure federal funding; and 8. WHEREAS, federal funding monies will not be available for any authorized project until such funds have been specifically appropriated by Congress; and 9. WHEREAS, Title XVI requires that projects complete a feasibility determination process administered through the United States Bureau of Reclamation (“USBR”) and that specific authority for funding be legislatively granted; and 10. WHEREAS, Participating Agencies have collaborated in efforts to promote legislation authorizing federal funding for Bay Area recycled water projects; and 11. WHEREAS, Senate Bill 2739, The Consolidated Natural Resources Act of 2008, was signed into Public Law 110‐229 on May 8, 2008; and 12. WHEREAS, Participating Agencies desire to continue efforts to obtain necessary legislation authorizing federal funding for Bay Area recycled water projects; and 13. WHEREAS, Participating Agencies desire to collaborate in efforts to promote legislation to appropriate federal funding for authorized projects and for other WRWC projects that may be authorized in the future. 14. WHEREAS, Participating Agencies desire to expand membership eligibility beyond the nine‐county Bay Area and change the coalition name to reflect this expansion. NOW THEREFORE, IN CONSIDERATION OF THE MUTUAL BENEFITS, COVENANTS AND PROMISES CONTAINED HEREIN, THE PARTIES DO HEREBY AGREE AS FOLLOWS: I. DEFINITIONS 1. Associate Participant: A public agency or an Investor Owned Water Utility regulated by the California Public Utilities Commission or comparable State regulatory agency if outside California that both: (i) does not have a recycled water project for which they are seeking congressional authorization and/or appropriation, but which wishes to monitor WRWC’s efforts to promote legislation to appropriate federal funding for recycled water projects authorized through Title XVI of the Reclamation Wastewater and Groundwater Study and Facilities Act of 1992; and (ii) is approved as an Associate Participant pursuant to Section II(2) of this Restated Agreement. Associate Participants may participate in WRWC discussions regarding federal funding efforts to be pursued under this Restated Agreement, but may not vote, or otherwise participate in any Page 3 of 31 Second Amended and Restated Western Recycled Water Coalition Memorandum of Agreement February 14, 2013 decision‐making, including the efforts to be undertaken under this Restated Agreement or any other matter. 2. Authorized Project: A project that has been enacted into federal law. 3. Federal Share: The dollar amount of Federal Title XVI funding that a Participating Agency is seeking for their project(s). In general, the Federal Share is 25% of the estimated total cost of a project for which a Participating Agency is seeking authorization and/or appropriation. However, an Authorized Project may have a remaining Federal Share that is less than 25% of the total project cost if it has previously received Federal appropriations. 4. Lead Agency: The Participating Agency selected by majority vote of the Participating Agencies to provide federal advocacy outside consulting services, including consultant contract management, facilitation and management of meetings, and accounting services. 6. Participating Agency: Each of the agencies that is a Participating Agency as of the effective date of this Restated Agreement. A Participating Agency also includes a public agency or Investor‐Owned Water Utility regulated by the California Public Utilities Commission, or comparable State regulatory agency if outside California, that both: (i) has a recycled water project(s) authorized through Title XVI or that will seek congressional authorization and appropriation for such projects; and (ii) is approved as a Participating Agency pursuant to Section II(1) of this Restated Agreement. 7. Parties: All current and future Participating Agencies and Associate Participants. 8. Western United States: Refers to the seventeen western states covered by the Title XVI Water Reclamation and Reuse Program. II. ELIGIBILITY TO BECOME A PARTY TO THIS RESTATED AGREEMENT 1. Any public agency or Investor Owned Water Utility in the western United States that is developing a recycled water project and has an interest in securing federal participation through Title XVI can become a Participating Agency upon approval of such status by a majority of the Participating Agencies and execution of the Participating Agency Addendum attached hereto as Attachment 1. Any Addendum should be approved on or before November 30 in order to be effective for the forthcoming calendar year; however, an agency or investor owned water utility may become a Participating Agency after November 30 or during the effective calendar year if approved by the majority of Participating Agencies. 2. Any public agency or Investor Owned Water Utility in the western United States that has the ability to develop a recycled water project can become an Associate Participant upon approval of such status by a majority of the Participating Agencies and execution of the Associate Participant Addendum, attached hereto as Attachment 2. Any Addendum should be approved on or before November 30 in order to be effective for the forthcoming calendar year. Page 4 of 31 Second Amended and Restated Western Recycled Water Coalition Memorandum of Agreement February 14, 2013 3. A Participating Agency or an Associate Participant may convert to a different party status for the forthcoming calendar year upon approval of such change in status by a majority of the Participating Agencies and execution of a Change of Party Status Addendum, attached hereto as Attachment 3. Any Addendum must be approved on or before December 15 in order to be effective for the forthcoming calendar year. Per Section VI(4), a Participating Agency that desires to change its party status to an Associate Participant during the effective calendar year shall not be entitled to any refund of their Advocacy Cost Share for that calendar year. III. PARTICIPATION AND ROLES IN FEDERAL LEGISLATIVE EFFORTS 1. The Participating Agencies hereby agree that the Lead Agency may be the legal authority to represent Participating Agencies in pursuit of the Title XVI appropriations under the Reclamation Wastewater and Groundwater Study and Facilities Act of 1992 (Public Law 102‐575), and may act as the regional entity on behalf of Participating Agencies. 2. The Participating Agencies agree that the Lead Agency may be listed as the entity submitting the authorization and appropriation requests to members of Congress and that Lead Agency support of Participating Agency legislative efforts may include review of and signature on letters of support drafted by Participating Agencies, and attending hearings and/or meetings with congressional representatives and their staff. Any documents the Lead Agency requests from a Participating Agency to support its legislative role will be prepared by the respective Participating Agency at its own expense. 3. The Participating Agencies agree that all appropriations requests pursuant to this Restated Agreement shall include language directing USBR to enter into funding agreements with the Participating Agencies for reimbursement of all eligible costs of the projects designated in the Appropriation Request List developed by the Participating Agencies pursuant to Section V of this Restated Agreement, in accordance with the distribution formula set forth in Section VII below. Any agreement required by USBR shall be subject to Participating Agency accepting the terms thereof. 4. Participating Agencies agree to provide for their own projects all necessary services including providing background information, project or program descriptions, planning, environmental review, federal feasibility documentation and determination, design, construction and coordination, project or program status reports, meeting attendance, review of documents, Board or Council resolutions (if needed), and any other staff support required to support federal advocacy efforts. The Lead Agency shall not have responsibility for provision of any of these services. 5. All recycled water projects for which federal participation is sought by the Participating Agencies through Title XVI that meet the terms of this Restated Agreement shall enjoy the same legislative priority for funding and authorization regardless of project size or congressional district in which the project is located. Page 5 of 31 Second Amended and Restated Western Recycled Water Coalition Memorandum of Agreement February 14, 2013 6. Each Participating Agency is committed to securing or assisting in securing the support of its House of Representatives member(s) to actively advocate on behalf of the Recycled Water Coalition approach. Each Participating Agency will request its House of Representative member(s) to place the WRWC recycled water Title XVI requests as a very high priority in order to support and reward the regional approach, even if the list of projects for any given year does not have a project in his/her district. 7. By September 1 of each calendar year, the Participating Agencies will select from among themselves one Lead Agency to provide federal advocacy outside consulting service for the forthcoming calendar year, including consultant contract management, facilitation and management of meetings and accounting services. The Lead Agency will bill the Parties for the costs it incurs for these activities (“Lead Agency Administrative Costs”). Each Participating Agency and each Associate Participant agrees to be individually liable for its pro rata share of the Lead Agency’s Administrative Costs as provided in Section VI below. All Participating Agencies shall be considered third party beneficiaries of the outside consultant contract and shall be entitled to receive all copies of consultant’s correspondence and reports. The outside consultant shall provide all required lobbying disclosure documentation for each of the Participating Agencies. Each Participating Agency agrees to be individually liable for its share of such consultant costs (“Advocacy Costs”) as provided in Section VI, below. IV. DETERMINATION OF PROJECTS FOR AUTHORIZATION REQUESTS By December 30 of each calendar year, Participating Agencies will determine which projects will be included in the authorization requests for the following calendar year and will create a list of those projects. The list may include any recycled water project located within the west where the project sponsor is a Participating Agency. It is the Coalition’s intent that this list be created a few months prior to the start of a new calendar year, as it cannot be assured that projects can be added or revisions made following authorization bill introduction. However, project additions or revisions to a draft or introduced authorization bill may be sought during the legislative session if approved by a majority of the Participating agencies. V. DETERMINATION OF PROJECTS FOR APPROPRIATION REQUESTS 1. By December 30 of each calendar year, Participating Agencies will review the status of all Authorized Projects to determine those projects that will meet both the following criteria: (1) Project has completed or is in the process of completing the Title XVI Feasibility Determination process administered by the United States Bureau of Reclamation; and (2) the funded phase of the project will be completed no later than the end of the federal fiscal year of the appropriation request (i.e. 2011 appropriation requests must be for work that will be completed by September 30, 2011); and project otherwise meets all eligibility requirements for funding under Title XVI, as amended. Projects meeting these criteria will be eligible for inclusion in the list of projects for which a federal funding allocation will be sought. Page 6 of 31 Second Amended and Restated Western Recycled Water Coalition Memorandum of Agreement February 14, 2013 2. By December 30 of each calendar year, Participating Agencies will determine the final list of projects; the associated project cost for which a federal funding allocation will be sought through the Congressional budget process for the subsequent federal fiscal year; and the percentage share each agency would receive of the total requested appropriation. This list shall be called the “Appropriation Request List”. VI. COST SHARING 1. Participating Agencies will pay their pro rata share of Lead Agency Administrative Costs and their share of Advocacy Costs, as defined in Section III (7). Associate Participants will pay their pro‐ rata share of Lead Agency Administrative Costs only. The Lead Agency will invoice the costs to the Participating Agencies and Associate Participants on an annual basis, around the beginning of the calendar year. Payment is due within thirty days of the date of the invoice. 2. On or around September 30 of each calendar year, the Lead Agency will submit a budget for Lead Agency Administrative Costs for the next calendar year. On or around October 30 of each calendar year, Participating Agencies will approve the final budget amount for these administrative costs. Participating Agencies will then determine the pro rata Lead Agency Administrative cost share for each Participating Agency and each Associate Participant for the next calendar year. The pro rata cost share will be determined by equally dividing the annual budgeted Lead Agency Administrative Costs by the number of Participating Agencies plus one‐half of the total number of Associate Participants. Each Participating Agency will pay a full pro rata share, and each Associate Participant will pay one‐half of a full pro rata share. 3. On or around November 30 of each year, Participating Agencies will identify each agency’s Federal Share for the next calendar year and determine the monetary sum of the Federal Shares for all Participating Agencies for that year. 4. On or around November 30 of each year, Participating Agencies will approve the total amounts to be spent on Advocacy Costs for the next calendar year. Participating Agencies will then determine the Advocacy Cost share attributable to a Participating Agency for that calendar year. The Advocacy Cost share will be determined by multiplying the total approved Advocacy Cost amount by a Participating Agency’s Federal Share and then dividing by the sum of the Federal Share for all Participating Agencies. This calculates a percent of the Advocacy cost share for a project, such that projects seeking a higher Federal share pay proportionally more of the Federal Advocacy Cost. Once the Advocacy Cost share for each Participating Agency for the next calendar year has been determined, a Participating Agency’s Advocacy Cost share will not be changed for that calendar year, even if the agency otherwise adjusts its Federal Share. 5. On or around December 30 of each year, each Participating Agency will obtain the necessary Board/City Council approval for funding of the next calendar year’s Advocacy Costs and Lead Agency Administrative Costs. On or around December 30 of each year, each Associate Participant will obtain the necessary Board/City Council approval for funding of the next year’s Lead Agency Administrative Costs. Page 7 of 31 Second Amended and Restated Western Recycled Water Coalition Memorandum of Agreement February 14, 2013 6. A Party that terminates its participation in this Restated Agreement will not receive any refund of its payments for either Lead Agency Administrative Costs or Advocacy Costs. A Participating Agency that is not eligible for federal funding under Title XVI will not receive any refund of its payments for either Lead Agency Administrative Costs or Advocacy Costs. VII. DISTRIBUTION OF FEDERAL FUNDING 1. Participating Agencies may designate the Lead Agency to serve as the legal entity to request amendments to Title XVI for the authorized projects. 2. When a federal appropriation is made, in accordance with the Appropriation Request List, the Lead Agency shall inform the USBR of the percentage share that each Participating Agency should receive for its project(s) from the appropriation pursuant to an individual project agreement(s) between the Participating Agency and USBR. Should the total amount of the federal appropriation be less than the total amount sought for all authorized projects in any given year, each Participating Agency will receive its percentage share of the lower appropriation, and the Lead Agency shall inform USBR of the percentage shares. 3. Neither the Lead Agency nor any Participating Agency shall have any responsibility or liability for any other Participating Agency’s performance of its obligations pursuant to its individual project agreement with the USBR. Each Participating Agency that receives a federal appropriation agrees to hold harmless the Lead Agency from any and all claims, causes of action or liabilities arising from or connected to (1) the Participating Agency’s acceptance and use of the federal appropriation and/or (2) the project for which the appropriation was received. 4. The Participating Agencies are not required to accept the USBR proposed agreement terms. If the affected Participating Agencies do not enter into the USBR agreement, the affected Parties’ obligations under this Restated Agreement shall terminate. VIII. DISPUTES The Parties agree to follow this dispute resolution procedure: 1. Informal Conferral. If a dispute related to the interpretation, enforcement, or compliance with the terms and provisions of this Restated Agreement arises, the affected Parties will first attempt to resolve it through informal discussions, which will include the persons identified as Entity Contacts in Section IX below for the affected Parties. If such a dispute cannot be resolved in this matter within thirty (30) days, the affected Parties will endeavor to settle the dispute through negotiation. 2. Negotiation. Not more than fifteen (15) business days after the conclusion of the informal conferral, the aggrieved Party shall serve on the other affected Parties (a) written notice of the nature and basis of the dispute, including any amount of money claimed, the provisions of this Restated Agreement at issue, and the facts in support of its position; and (b) a copy of all supporting Page 8 of 31 Second Amended and Restated Western Recycled Water Coalition Memorandum of Agreement February 14, 2013 documents. Within ten (10) business days after service of the notice, the responding Parties shall serve on the aggrieved Party (a) a written response setting out their position, including the provisions of the Restated Agreement relied on and the facts in support thereof; and (b) a copy of all supporting documents. Within ten (10) business days after service of the response, the affected Parties shall meet to negotiate resolution of the dispute. Each Party’s negotiator shall be its general manager or city manager, executive director, or their designee. 3. After negotiation, any affected Party may pursue any available legal remedy. The written notice of the dispute and the written response and all documents produced, but not the subsequent discussion, shall be admissible in any subsequent proceeding. 4. Pending resolution of the dispute, each Party must fulfill its payment obligations and other responsibilities under this Restated Agreement. IX. PARTY CONTACTS For each Participating Agency and each Associate Participant, a contact person is identified. All communications regarding activities covered by this Restated Agreement will be made to those contact persons. All notices pertaining to this Restated Agreement will be in writing and may be delivered by deposit in the U.S. mail, postage prepaid, addressed in the case of each Party to the contact person. Upon written notice of the change of a Party’s contact person, the Lead Agency may update the list of party contacts and circulate a copy of the list to all Parties. Contact persons of the Parties as of December 30, 2012 are provided in Attachment 4. X. AMENDMENTS This Restated Agreement may be amended by a written document executed by all of the Parties hereto. XI. ENTIRE AGREEMENT This Restated Agreement contains all the terms and conditions agreed upon by the Parties. Except as expressly provided herein, no other understanding, oral or otherwise, regarding the subject matter of this Restated Agreement shall be deemed to exist or to bind all of the Parties hereto. XII. TERMINATION This Restated Agreement may be terminated immediately at any time by written mutual consent of all the Parties. Upon provision of written notice of termination to all other Parties no later than October 15, and full payment of any amounts it owes under this Restated Agreement, a Participating Agency or an Associate Participant may terminate its participation in this Restated Agreement effective December 31 of the then‐current calendar year. Termination does not entitle a Party to a refund of its cost share. Page 9 of 31 Second Amended and Restated Western Recycled Water Coalition Memorandum of Agreement February 14, 2013 XIII. COUNTERPARTS This Restated Agreement may be executed in multiple counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same agreement. XIV. EFFECTIVENESS Upon execution by the existing Parties, this Restated Agreement shall be deemed effective as of the date first set forth above, except that execution by an existing Party that terminates membership is not required in order for this Restated Agreement to become effective as to the other Parties. EXECUTED AND APPROVED ON BEHALF OF EACH PARTY AS SIGNIFIED BY THE SIGNATURES BELOW: PARTIES: Page 10 of 31 Second Amended and Restated Western Recycled Water Coalition Memorandum of Agreement February 14, 2013 City of Mountain View: ________________________________ Daniel H. Rich, City Manager Page 11 of 31 Second Amended and Restated Western Recycled Water Coalition Memorandum of Agreement February 14, 2013 City of Palo Alto: ________________________________ James Keene, City Manager Page 12 of 31 Second Amended and Restated Western Recycled Water Coalition Memorandum of Agreement February 14, 2013 City of Redwood City: ________________________________ Robert Bell, City Manager ATTY/AGR/2013.002/BACWA MOA 2ND AMENDED RESTATED 12‐12‐12 REV: 01‐14‐13 MLG Page 13 of 31 Second Amended and Restated Western Recycled Water Coalition Memorandum of Agreement February 14, 2013 City of San Jose: ________________________________ Debra Figone, City Manager Page 14 of 31 Second Amended and Restated Western Recycled Water Coalition Memorandum of Agreement February 14, 2013 Delta Diablo Sanitation District (DDSD): ________________________________ Gary W. Darling, General Manager Page 15 of 31 Second Amended and Restated Western Recycled Water Coalition Memorandum of Agreement February 14, 2013 Santa Clara Valley Water District: ________________________________ Beau Goldie, Chief Executive Officer Page 16 of 31 Second Amended and Restated Western Recycled Water Coalition Memorandum of Agreement February 14, 2013 Central Contra Costa Sanitary District: ________________________________ _ Curtis W. Swanson, Provisional General Manager Page 17 of 31 Second Amended and Restated Western Recycled Water Coalition Memorandum of Agreement February 14, 2013 Dublin San Ramon Services District: _________________________________ Bert Michalczyk, General Manager Page 18 of 31 Second Amended and Restated Western Recycled Water Coalition Memorandum of Agreement February 14, 2013 Ironhouse Sanitary District: _________________________________ Thomas Williams, General Manager Page 19 of 31 Second Amended and Restated Western Recycled Water Coalition Memorandum of Agreement February 14, 2013 City of Hayward: _________________________________ Frances David, City Manager Page 20 of 31 Second Amended and Restated Western Recycled Water Coalition Memorandum of Agreement February 14, 2013 City Pleasanton: _________________________________ Nelson Fialho, City Manager Page 21 of 31 Second Amended and Restated Western Recycled Water Coalition Memorandum of Agreement February 14, 2013 Town of Yountville _________________________________ Steven Rogers , Town Manager Page 22 of 31 Second Amended and Restated Western Recycled Water Coalition Memorandum of Agreement February 14, 2013 City of Sunnyvale _________________________________ Gary Luebbers, City Manager Page 23 of 31 Second Amended and Restated Western Recycled Water Coalition Memorandum of Agreement February 14, 2013 San Jose Water Company _________________________________ Craig S. Giordano, Chief Engineer Page 24 of 31 Second Amended and Restated Western Recycled Water Coalition Memorandum of Agreement February 14, 2013 Zone 7 Water Agency: _________________________________ G.F. (Jill) Duerig, General Manager Page 25 of 31 Second Amended and Restated Western Recycled Water Coalition Memorandum of Agreement February 14, 2013 Attachment 1 ‐ Participating Agency Addendum Attachment 2 ‐ Associate Participant Addendum Attachment 3 ‐ Change of Party Status Addendum Attachment 4 – Entity Contacts Attachment 5 – New Participating Agencies Approved by Vote for 2013 Page 26 of 31 Second Amended and Restated Western Recycled Water Coalition Memorandum of Agreement February 14, 2013 ATTACHMENT 1 PARTICIPATING AGENCY ADDENDUM This Addendum to the Second Amended and Restated Memorandum of Agreement for the Western Recycled Water Coalition (WRWC) Federal Legislative Efforts (the “Restated Agreement”) is made on (date)_______________, by the (name of entity) _____________ , (the “Agency”) a (state legal capacity, i.e. a municipal corporation) _____________ for the purpose of becoming a Participating Agency as that term is defined in the Restated Agreement. The Restated Agreement is incorporated by reference in and made a part of this Addendum. In consideration for the mutual promises set forth in the Restated Agreement, the governing body of the Agency hereby agrees to accept and perform all duties, responsibilities and obligations required of a Participating Agency as set forth in the Restated Agreement. Further, the governing body authorizes its ____________________ or his/her designee to sign all documents necessary to implement the Restated Agreement. The Agency acknowledges that it has received a copy of the Restated Agreement and after thorough review of the Restated Agreement desires to become a Participating Agency under the Restated Agreement. The Restated Agreement contemplates the inclusion of Participating Agencies by a process of voluntary execution of this Addendum and a majority vote of the Participating Agencies to approve inclusion of the signatory as a Participating Agency. The governing body of the Agency certifies that the Agency has a recycled water project authorized through Title XVI of the Reclamation Wastewater and Groundwater Study and Facilities Act of 1992 or intends to actively seek congressional authorization and appropriation, for projects covered under Title XVI. The contact person and notice address for the Agency are: _________________________ _________________________ _________________________ (Name of Agency) Date________________________ By:________________________ (title) The Restated Agreement and the Addendum are approved as to form: By:_________________________, Attorney for PARTICIPATING AGENCY Page 27 of 31 Second Amended and Restated Western Recycled Water Coalition Memorandum of Agreement February 14, 2013 ATTACHMENT 2 ASSOCIATE PARTICIPANT ADDENDUM This Addendum to the Second Amended and Restated Memorandum of Agreement for the Western Recycled Water Coalition (WRWC) Federal Legislative Efforts (the “Restated Agreement”) is made on (date)_______________, by the (name of entity) _____________ , (the “Agency”) a (state legal capacity, i.e. a municipal corporation) _____________ for the purpose of becoming an Associate Participant as that term is defined in the Restated Agreement. The Restated Agreement is incorporated by reference in and made a part of this Addendum. The Agency acknowledges that it has received a copy of the Restated Agreement and after thorough review of the Restated Agreement desires to become an Associate Participant under the Restated Agreement. The Restated Agreement contemplates the inclusion of Associate Participant by a process of voluntary execution of this Addendum and a majority vote of the Participating Agencies to approve inclusion of the signatory as an Associate Participant. The governing body of the Agency certifies that the Agency does not intend to actively seek congressional authorization and appropriation for projects covered under Title XVI. However, the Agency would like to participate in WRWC. In consideration for the mutual promises set forth in the Restated Agreement, the governing body of the Agency hereby agrees to accept and perform all duties, responsibilities and obligations required of a Associate Participants set forth in the Restated Agreement. Further, the governing body authorizes its ____________________ or his/her designee to sign all documents necessary to implement the Restated Agreement. The contact person and notice address for the Agency are: _________________________ _________________________ _________________________ Date________________________ (Name of Agency) By:________________________ Chairperson The Restated Agreement and the Addendum are approved as to form: By:_________________________, Attorney for Associate Participant Page 28 of 31 Second Amended and Restated Western Recycled Water Coalition Memorandum of Agreement February 14, 2013 ATTACHMENT 3 CHANGE OF PARTY STATUS ADDENDUM This Second Amended and Restated Addendum to the Memorandum of Agreement for the Western Recycled Water Coalition (WRWC) Federal Legislative Efforts (the “Restated Agreement”) is made on (date)_______________, by the (name of entity) _____________ , (the “Agency”) a (state legal capacity, i.e. a municipal corporation) _____________ for the purpose of becoming a (specify new status e.g., Participating Agency or Associate Participant) as that term is defined in the Restated Agreement. The Restated Agreement is incorporated by reference in and made a part of this Addendum. The Agency acknowledges that it has received a copy of the Restated Agreement and after thorough review of the Restated Agreement desires to change its party status from (specify current status, e.g., Participating Agency or Associate Participant) to (specify new status, e.g., Participating Agency or Associate Participant) under the Restated Agreement. The Restated Agreement contemplates the modification of party status by a process of voluntary execution of this Addendum and a majority vote of the Participating Agencies to approve modification of the signatory’s party status. [If new status is Participating Agency, include the following paragraph] The governing body of the Agency certifies that the Agency has a recycled water project authorized through Title XVI of the Reclamation Wastewater and Groundwater Study and Facilities Act of 1992 or intends to actively seek congressional authorization and appropriation, for projects covered under Title XVI. [If new status is Associate Participant, include the following paragraph] The governing body of the Agency certifies that the Agency does not intend to actively seek congressional authorization and appropriation, for projects covered under Title XVI. However, the Agency would like to participate in WRWC. In consideration for the mutual promises set forth in the Restated Agreement, the governing body of the Agency hereby agrees to accept and perform all duties, responsibilities and obligations required of a (specify new status, e.g., Participating Agency or Associate Participant) as set forth in the Restated Agreement. Further, the governing body authorizes its ____________________ or his/her designee to sign all documents necessary to implement the Restated Agreement. The contact person and notice address for the Agency are: _________________________ _________________________ _________________________ (Name of Agency) Date________________________ By:________________________ (title) The Restated Agreement and the Addendum are approved as to form: By:_________________________, Attorney for PARTICIPATING AGENCY Page 29 of 31 Second Amended and Restated Western Recycled Water Coalition Memorandum of Agreement February 14, 2013 ATTACHMENT 4 ENTITY CONTACTS City of Hayward Alex Ameri, Director of Public Works‐Utilities and Environmental Services 777 B Street Hayward, CA 94541 City of Mountain View Gregg Hosfeldt, Assistant Public Works Director 500 Castro Street/ P.O. Box 7540 Mountain View, CA 94039‐7540 City of Palo Alto Nicolas Procos 250 Hamilton Avenue Palo Alto, CA 94301 City of Pleasanton Daniel Smith P.O. Box 520 Pleasanton, CA 94566 City of Redwood City Roanne Ross, Whitley Burchett & Associates 1777 Oakland Blvd. Suite 200 Walnut Creek, CA 94596 City of San Jose, South Bay Water Recycling David Tucker c/o City of San Jose Municipal Water System 3025 Tuers Road San Jose CA 95121 Delta Diablo Sanitation District Caroline Quinn, District Engineer 2500 Pittsburg‐Antioch Highway Antioch, CA 94509‐1373 Dublin San Ramon Services District Rhodora Biagtan, Principal Engineer 7051 Dublin Boulevard Dublin, CA 94568 Ironhouse Sanitary District Tom Williams, General Manager 450 Walnut Meadows Dr. Page 30 of 31 Second Amended and Restated Western Recycled Water Coalition Memorandum of Agreement February 14, 2013 Oakley, CA 94561 San Jose Water Company Craig S. Giordano 1265 South Bascom Avenue San Jose, CA 95128 Santa Clara Valley Water District Joan Maher, Deputy Operating Officer 5750 Almaden Expressway San Jose, CA 95118 Town of Yountville Graham Wadsworth, Public Works Director 6550 Yount Street Yountville, CA 94599 Zone 7 Water Agency Amparo Flores 100 North Canyons Parkway Livermore, CA 94551‐9486 Page 31 of 31 Second Amended and Restated Western Recycled Water Coalition Memorandum of Agreement February 14, 2013 ATTACHMENT 5 NEW PARTICIPATING AGENCIES APPROVED BY VOTE IN 2012 FOR CALENDAR YEAR 2013 During the drafting of this Restated Agreement in late 2012, the existing Participating Agencies approved by vote the addition of the following three new Participating Agencies for 2013: 1. City of Brentwood 2. City of Fresno 3. North Valley Regional Recycled Water Program, consisting of the City of Modesto, City of Turlock, City of Ceres, and Del Puerto Water District. These new WRWC members will become Participating Agencies and Parties to this Restated Agreement following their execution of the Participating Agency Addendum provided as Attachment 1. CITY OF PALO ALTO OFFICE OF THE CITY ATTORNEY April 15, 2013 The Honorable City Council Palo Alto, California Adoption of a Resolution Approving Amendment Number One to the Water Supply Agreement with the City and County of San Francisco On April 1, 2013 the City Council Approved Amendment Number One to the Water Supply Agreement with the City and County of San Francisco. The Resolution adopting the Amendment was not mentioned in the title of the Recommendation seeking Council approval. The title of the Recommendation should be “Adoption of a Resolution Approving Amendment Number One to the Water Supply Agreement with the City and County of San Francisco”. This item is being re-packeted to correct this oversight. ATTACHMENTS: Staff Report 3578 (PDF) Department Head: Molly Stump, City Attorney Page 2 City of Palo Alto (ID # 3730) City Council Staff Report Report Type: Action Items Meeting Date: 4/15/2013 City of Palo Alto Page 1 Summary Title: Role of Council Liaision to Palo Alto Boards and Commissions Title: Policy & Services Committee Recommendation to Approve Revisions to Section 2.4 of the City Council Protocols Setting Forth the Conduct of Council Liaisons to Palo Alto Boards and Commissions (continued from March 18, 2013) From: City Manager Lead Department: City Manager Recommendation Draft motion: Approve revisions, as recommended by the Policy and Services Committee, to Section 2.4 of the City Council Protocols regarding the conduct of Council liaisons to Boards and Commissions (Attachment A). Background At its January 28, 2013 meeting, the City Council referred to the Policy and Services Committee discussion of the Council liaison role for: 1) boards and commissions, and; 2) community groups to which council members are designated. The Council asked the Committee to review and consider the definition and responsibilities and authority of Council liaisons and to return to Council in March 2013. Discussion Section 2.4 of the City Council Protocols sets forth the conduct of Council liaisons to Palo Alto Boards and Commissions. The Policy & Services Committee identified a Council liaison role in what could be defined as three separate levels or tiers: Tier 1 - Those at the City level who are appointed by the Mayor and City Council such as the City’s Boards and Commissions. Tier 2 – Those at the county, state and federal levels that may be selected by those other than the Mayor, have predictable involvement, and Council members may vie for appointments. Tier 3 – Community based organizations with whom we have a less clearly defined role. City of Palo Alto Page 2 The Policy and Services Committee recommends that Section 2.4 be revised to: 1. Identify that there are three tiers of Council liaison roles (as defined above). 2. Clarify Tier 1 liaisons should represent the position of Council in areas involving policy issues. While meeting attendance is important for Tier 1 liaisons, time demands and competing conflicts may impact liaison attendance at regular meetings. 3. Clarify Tier 2 liaisons should represent the position of Council in areas involving policy issues where available, but have discretion in representing the City on issues that the Council has not taken a policy position on a matter. Meeting attendance is expected for Tier 2 liaisons, understanding time demands and competing conflicts may impact liaison attendance from time to time. 4. Clarify Tier 3 liaisons should use their judgment regarding scheduled meetings of their assigned community based organization. Understanding policy issues are less likely to arise, Tier 3 liaisons should use discretion in sharing individual views and positions. 5. Add a new provision regarding the terms of appointments. For City Boards, Commissions and community based organizations, appointment of Council liaisons should not exceed a period of two years. This would not apply to Tier 2 roles as terms are not typically at the discretion of the City. 6. Clarify/clean up Section 2.4 (A) and 2.4 (C). The provisions are inconsistent and confusing. Move Section 2.4(A) to end. The recommended revisions to Section 2.4 of the City’s Council protocols are included as Attachment A. Attachment B provides a list of the City’s roster of boards, commissions and committees as of January 2013 sorted by each of the three tiers. Attachments: Attachment B- City Roster (PDF) Attachment C- 02-12-13 P&S Action Minutes (DOC) Attachment A- Revisions to Section 2.4 (PDF) Attachment B. City Roster ‐ January 2013 Tiers 1, 2 and 3 CATEGORY AGENCY APPOINTED BY Council Liaison TERM 1BOARDS & COMMISSIONS Architectural Review Board (ARB) Mayor 1 year 2BOARDS & COMMISSIONS Historic Resources Board (HRB) Mayor Liz Kniss 1 year 3BOARDS & COMMISSIONS Human Relations Commission (HRC) Mayor Liz Kniss 1 year 4BOARDS & COMMISSIONS Library Advisory Commission (LAC) Mayor Gail Price 1 year 5BOARDS & COMMISSIONS Parks and Recreation Commission (PARC) Mayor Greg Schmid 1 year 6BOARDS & COMMISSIONS Planning & Transportation Commission (P&TC) Mayor 1 year 7BOARDS & COMMISSIONS Public Art Commission (PAC) Mayor Karen Holman 1 year 8BOARDS & COMMISSIONS Storm Drain Oversight Committee (STOC) Mayor 1 year 9BOARDS & COMMISSIONS Utilities Advisory Commission (UAC) Mayor Greg Scharff 1 year 10 COUNTY Santa Clara County Cities Association Mayor Greg Scharff 1 year 11 COUNTY Santa Clara County Cities Association, Legislative Action Committee Mayor Greg Scharff 1 year 12 COUNTY Santa Clara County Emergency Preparedness Council Mayor Pat Burt 1 year 13 COUNTY Santa Clara Valley Water District Commission Mayor Greg Schmid 1 year 14 COUNTY SCVWD Lower Peninsula Flood Control & Watershed Advisory Committee Mayor Karen Holman 1 year 15 COUNTY Valley Transportation Authority, El Camino Real Rapid Transit Policy Advisory Board Mayor Liz Kniss 1 year 16 COUNTY Valley Transportation Authority, Policy Advisory Committee Mayor Gail Price 1 year 17 REGIONAL, STATE AND FEDERAL Association of Bay Area Governments Mayor Greg Schmid 1 year 18 REGIONAL, STATE AND FEDERAL Bay Area Air Quality Mangement District Agency Liz Kniss 1 year 19 REGIONAL, STATE AND FEDERAL Bay Area Regional Water System and Financiang Authority Full Council Larry Klein 4 year 20 REGIONAL, STATE AND FEDERAL Bay Area Water Supply and Conservation Agency 21 REGIONAL, STATE AND FEDERAL Bay Area Water System Conservation Agency Full Council Larry Klein 4 year Tier 1 Tier 2 1 of 2 3/11/2013 Attachment B. City Roster ‐ January 2013 Tiers 1, 2 and 3 CATEGORY AGENCY APPOINTED BY Council Liaison TERM 22 REGIONAL, STATE AND FEDERAL Bay Conservation and Development Commission Agency Greg Scharff 23 REGIONAL, STATE AND FEDERAL League of California Cities, Peninsula Division Mayor Karen Holman 1 year 24 REGIONAL, STATE AND FEDERAL National League of Cities Energy, Environmental, and Natural Resources Steering Committee Agency Larry Klein 25 REGIONAL, STATE Northern California Power Agency Mayor Greg Scharff 1 year 26 REGIONAL, STATE AND FEDERAL Peninsula Cities Consortium Mayor Pat Burt 1 year 27 REGIONAL, STATE AND FEDERAL Peninsula Rail Program Policy Maker Workgroup Agency Pat Burt 28 REGIONAL, STATE AND FEDERAL San Francisco Bay Area Regional Water System Financing Authority Agency Larry Klein 29 REGIONAL, STATE AND FEDERAL San Francisquito Creek Joint Powers Authority Mayor Pat Burt 1 year 30 REGIONAL, STATE AND FEDERAL Santa Clara County Cities Association, Cities Selection Committee Agency Greg Scharff 31 REGIONAL, STATE AND FEDERAL Silicon Valley Regional Interoperability Authority Agency Greg Scharff 10/31/2013 32 REGIONAL, STATE AND FEDERAL Transmission Agency of Northern California Mayor Greg Scharff 1 year 33 REGIONAL, STATE AND FEDERAL Valley Transportation Authority, Authority Board Agency Gail Price 34 CITY & LOCAL Art Center Foundation Mayor Greg Schmid 1 year 35 CITY & LOCAL Avenidas Mayor Larry Klein 1 year 36 CITY & LOCAL Board of Realtors Mayor Liz Kniss 1 year 37 CITY & LOCAL Business Association of California Mayor Karen Holman 1 year 38 CITY & LOCAL Caltrain Policy Maker Committee Mayor Greg Scharff 1 year 39 CITY & LOCAL Chamber of Commerce Mayor Marc Berman 1 year 40 CITY & LOCAL Grand Boulevard Task Force Mayor Greg Schmid 1 year 41 CITY & LOCAL Junior Museum & Zoo Mayor Marc Berman 1 year 42 CITY & LOCAL Lytton Gardens Mayor Greg Schmid 1 year 43 CITY & LOCAL Midpeninsula Community Media Center Mayor Liz Kniss 1 year 44 CITY & LOCAL Neighbors Abroad Mayor Liz Kniss 1 year 45 CITY & LOCAL Palo Alto Community Child Care Mayor Nancy Shepherd 1 year 46 CITY & LOCAL Palo Alto Downtown Business & Professional Association (BID) Mayor Liz Kniss 1 year 47 CITY & LOCAL Palo Alto Housing Corporation Mayor Liz Kniss 1 year 48 CITY & LOCAL Palo Alto/Stanford Citizen Corps Council Agency Greg Schmid 1 year 49 CITY & LOCAL Stanford University Mayor Greg Scharff 1 year Tier 3 2 of 2 3/11/2013 POLICY AND SERVICES COMMITTEE ACTION MINUTES Page 1 of 2 Regular Meeting February 12, 2013 MOTION: Council Member Klein moved, seconded by Council Member Price to move Agenda Item No. 3- Discussion and Review of the Legislative Action Program Manual and the 2013 Federal and State Legislative Priorities forward to be heard first, followed by Agenda Item No. 2- Auditor's Office Quarterly Report as of December 31, 2012 and Revised Workplan, and hear Agenda Item No. 1-Referral from City Council to Establish a Definition of Council Liaison Role for Boards and Commissions and Community Groups that Council Members are designated to in Section 2.4 in the City Council Protocol last. MOTION PASSED: 3-0 Holman absent Agenda Items 1. (Former Number Three) Discussion and Review of the Legislative Action Program Manual and the 2013 Federal and State Legislative Priorities. MOTION: Council Member Price moved, seconded by Council Member Klein to recommend the City Council approve the Legislative Program Action Manual, the 2013 Federal Legislative priorities and review of 2012 activities, and the 2013 State Legislative priorities and review of 2012 activities MOTION PASSED: 3-0 Holman absent 2. Auditor's Office Quarterly Report as of December 31, 2012 and Revised Workplan. MOTION: Council Member Price moved, seconded by Council Member Klein to recommend the City Council acceptance of the Auditor’s Office Quarterly Report as of December 31, 2012 and Revised Workplan, to include deferring the Development Center Process for one year. MOTION PASSED/FAILED: 3-0 Holman absent ACTION MINUTES Page 2 of 2 Policy and Services Committee Regular Meeting Action Minutes 02/12/13 3. (Former Number One) Referral from City Council to Establish a Definition of Council Liaison Role for Boards and Commissions and Community Groups that Council Members are designated to in Section 2.4 in the City Council Protocols. MOTION: Council Member Klein moved, seconded by Council Member Price to direct Staff to prepare a draft of revised section 2.4 in accordance with tonight’s discussions. MOTION PASSED: 3-0 Holman absent ADJOURNMENT: Meeting adjourned at 9:17 PM. Attachment A. Recommended Revisions to Section 2.4 of the City Council Protocols 2.4 ‐Conduct with Palo Alto Boards and Commissions The City has established several Boards and Commissions as a means of gathering more community input. Citizens who serve on Boards and Commissions become more involved in government and serve as advisors to the City Council. They are a valuable resource to the City’s leadership and should be treated with appreciation and respect. Council Members serve as liaisons to Boards and Commissions, according to appointments made by the Mayor, and in this role are expected to represent the full Council in providing guidance on Council processes or actions to the Board or Commission. Refrain from speaking for the full Council on matters for which the full council has not yet taken a policy position. In other instances, Council Members may attend Board or Commission meetings as individuals, and should follow these protocols: A. If Attending a Board or Commission Meeting, Identify Your Comments as Personal Views or Opinions. Council Members may attend any Board or Commission meeting, which are always open to any member of the public. Any public comments by a Council Member at a Board or Commission meeting, when that Council Member is not the liaison to the Board or Commission should make a point to clearly state it is an individual opinion and not a representation of the feelings of the entire City Council. A. Three Tiers of Council Liaisons. There are three liaison tiers: Tier 1 – Those at the City level who are appointed by the Mayor and City Council i.e., the City’s Boards and Commissions. Those at the City level Tier 2 – Those at the county, state and federal levels that may be selected by those other than the Mayor, have predictable involvement, and Council members may vie for appointments.Those at the countylevel that are typically selected by those other than the Mayor, have less predictable involvement, and Council members vie for appointments Tier 3 – Community based organizations with whom Council Members have a less clearly defined role. A. B. Liaison Term. For Tiers 1 and 3, liaison appointments shall not exceed a period of two years. This does not apply to Tier 2 appointments because the terms are not typically at the City’s discretion. BC. Refrain from Lobbying Board and Commission Members. It is inappropriate for a Council Member to contact a Board or Commission member to lobby on behalf of an individual, business, or developer, or to advocate a particular policy perspective. It is acceptable for Council Members to contact Board or Commission members in order to clarify a position taken by the Board or Commission. DC. Remember that Boards and Commissions are Advisory to the Council as a Whole, not toas Individual Council Members. The City Council appoints individuals to serve on Boards and Commissions based in part on particular areas of expertise. In areas involving policy Attachment A. Recommended Revisions to Section 2.4 of the City Council Protocols issues, and it is the responsibility of Boards and Commissions to follow policy established by a majority of the Council. Tier 1 Liaisons should communicate the majority position of Council, despite their personal views or votes. Council Members should not feel they have the power or right to unduly influence Board and Commission members. A Board and Commission appointment should not be used as a political reward. ED. Concerns about an Individual Board or Commission Member Should be Pursued with Tact. If a Council Member has concerns with a particular Board or Commission member fulfilling his or her roles and responsibilities and is comfortable in talking with that individual privately, the Council Member should do so. Alternatively, or if the problem is not resolved, the Council Member should consult with the Mayor, who may address the issue to the Council as appropriate. FE. Be Respectful of Diverse Opinions. A primary role of Boards and Commissions is to represent many points of view in the community and to provide the Council with advice based on a full spectrum of concerns and perspectives. Council Members may have a closer working relationship with some individuals serving on Boards and Commissions, but must be fair to and respectful of all citizens serving on Boards and Commissions. GF. Keep Political Support Away from Public Forums. Board and Commission members may offer political support to a Council Member, but not in a public forum while conducting official duties. Conversely, Council Members may support Board and Commission members who are running for office, but not in an official forum in their capacity as a Council Member. HG. Maintain an Active Liaison Relationship. Appointed Council liaisons or alternates are encouraged to attend all regularly scheduled meetings of their assigned Board or Commission. 1. Tier 1 liaisons and alternates should represent the majority position of Council in areas involving policy issues. While meeting attendance is important for Tier 1 liaisons, time demands and competing conflicts may impact liaison attendance at regular meetings. 2. Tier 2 liaisons should represent the majority position of Council in areas involving policy issues where available, but have discretion in representing the City on issues that the Council has not taken a policy position on a matter. Meeting attendance is expected for Tier 2 liaisons, understanding time demands and competing conflicts may impact liaison attendance from time to time. 3. Clarify Tier 3 liaisons should use their judgment regarding scheduled meetings of their assigned community based organization. Understanding policy issues are less likely to arise, Tier 3 liaisons should use discretion in sharing individual views and positions. IG. If Attending a Board or Commission Meeting in Non‐Liaison Capacity. , Identify Your Comments as Personal Views or Opinions. Council Members may attend any Board or Commission meeting, which are always open to any member of the public. Any public comments by a non‐liaison Council Member at a Board or Commission meeting, when that Attachment A. Recommended Revisions to Section 2.4 of the City Council Protocols Council Member is not the liaison to the Board or Commission should be identified as an individual opinion unless the majority of the Council has taken a policy position on the matter. If the majority of the Council has taken a position, the non‐liaison should also communicate the position taken by the majority of the Council. make a point to clearly state it is an individual opinion and not a representation of the feelings of the entire City Council. City of Palo Alto COLLEAGUES MEMO April 15, 2013 Page 1 of 2 (ID # 3738) DATE: April 15, 2013 TO: City Council Members FROM: Mayor Scharff, Council Member Holman, Council Member Price, Council Member Schmid SUBJECT: COLLEAGUES MEMO REQUESTING THAT THE STAFF AND PLANNING AND TRANSPORTATION COMMISSION (PTC) REVIEW SIDEWALK WIDTHS WITH A FOCUS ON EL CAMINO REAL AND THE GRAND BOULEVARD PLAN AND RETURN TO COUNCIL WITH SUGGESTED ZONING AMENDMENTS Background and Purpose In recent years, Palo Alto has experienced a number of new developments, especially along El Camino Real and Alma that address the street in ways that are inconsistent with the intent and the vision of the El Camino Real Design Guidelines and the Grand Boulevard Plan. This has generated consternation in the community and a strong negative reaction by members of the public as to how close these new buildings are to the street and how the buildings turn their backs on the public right of way due to inadequate setbacks and building articulation and openings to reduce the building mass. New Urbanism principles and/or use of the PC have often incorrectly been identified as the reason for these buildings being characterized as unfriendly and overwhelming. A course correction is needed that is grounded in design principles that inform development standards, site plans and architectural design and lead to better, more appropriate future development that addresses the street in a way that is consistent with the vision of the El Camino Real Design Guidelines and the Grand Boulevard Plan. It is worth noting that 8-foot sidewalks limit the species of trees to those with vertical growth and thus results in a smaller canopy that can be accommodated in areas with greater setbacks. The Grand Boulevard Initiative recommends an 18-foot minimum between buildings and the curb edge (Street Design Toolbox, Figure 5-15) compared to the 12 feet (4 foot April 15, 2013 Page 2 of 2 (ID # 3738) planting strip plus 8 foot sidewalk) currently being implemented by Palo Alto. The 18- foot Sidewalk Zone incorporates 1) a six-foot amenity zone for street trees and lighting, 2) a minimum 8-foot walking zone, and 3) a four-foot spill out zone adjacent to building frontages. Further, the Boulevard Sidewalk Width section states that the current and typical 8-foot sidewalks are too narrow … and that heavy transit- and pedestrian- oriented areas in larger cities are 30 feet and more wide. Section 3.1.7 recommends “….varying increased setbacks to improve building design, creation of public amenities and improved building function.” Recommendations That the Staff, Planning and Transportation Commission (PTC) and Architecture Review Board (ARB) review sidewalk widths and how buildings address the street with a focus on El Camino Real and with reference to the Grand Blvd. Design Guidelines and return to Council with suggested zoning amendments that implement the vision expressed in the Grand Boulevard Plan, and revise the South El Camino Real guidelines and zoning as appropriate to make them consistent with this vision. Other major thoroughfares, including but not limited to Alma, Downtown, California Avenue and Charleston should be addressed in this context, as Staff feels is appropriate at this time. City of Palo Alto (ID # 3660) City Council Staff Report Report Type: Informational Report Meeting Date: 4/15/2013 City of Palo Alto Page 1 Council Priority: City Finances Summary Title: Storm Drain Oversight Committee Expenditure Review Title: Storm Drain Oversight Committee Review of FY2012 Storm Drainage Fund Expenditures From: City Manager Lead Department: Public Works Recommendation This is an informational report only and no Council action is required. Discussion The Council-appointed Storm Drain Oversight Committee (Committee) meets annually to review Storm Drainage Fund expenditures and ensure their consistency with the ballot measure approved by property owners in 2005. Attachment A is the memo submitted by the Committee presenting the findings from their review of Fiscal Year 2012 Storm Drainage Fund expenditures. The memo documents the Committee’s finding that the Fiscal Year 2012 expenditures are compatible with the provisions of the 2005 ballot measure. Courtesy copies:Storm Drain Oversight Committee Attachments: ·A -Storm Drain Oversight Committee Memo to City Council (PDF) Storm Drain Oversight Committee MEMORANDUM Date: March 20, 2013 To: Honorable City Council From: Members of the Storm Drain Oversight Committee Subject: Review of FY 2011-12 Storm Drainage Fund Expenditures As directed by the City Council, we have reviewed the Storm Drainage Fund’s expenditures for fiscal year 2011-12. Specifically, we have reviewed the expenditure of the revenue generated by the increased Storm Drainage Fee and compared it with the provisions of the Storm Drainage Fee increase approved by Palo Alto property owners in 2005. Based on this review, we find that the Storm Drainage Fund’s use of the increased revenue is compatible with the approved ballot measure (including $625,445 which was used for storm drain operational expenses previously covered by the General Fund subsidy). The Committee met on March 20, 2013 to review the FY 2011-12 Storm Drainage Fund expenditures. During its meeting, the Committee reviewed financial information provided by staff, including the attached matrix detailing revenue generated by the Storm Drainage Fee increase and corresponding expenditures for FY 2011-12. The financial information was prepared and verified by Public Works and Administrative Services Department staff, using existing documentation whenever possible. Based upon our review of the financial materials provided to us, we find that the attached document labeled “Summary of Use of Storm Drainage Fee Increase for FY 2011-12” accurately summarizes the use of the revenue generated by the increased Storm Drainage Fee for FY 2011-12 and that the expenditures are compatible with the provisions of the Storm Drainage Fee increase ballot measure approved by Palo Alto property owners in 2005. Attachment cc: Jim Keene Pam Antil Mike Sartor Brad Eggleston Lalo Perez Summary of Use of Storm Drainage Fee Increase for FY 2012 Line Item Storm Drainage Fees Carryover Expended Committed by Contract Remaining Appropriation Total Use of Funds Fee Increase Revenue SD Fee Increase $3,516,897 Capital Improvements and Program Enhancements A. One-time SD CIP Projects San Francisquito Creek Pump Station $76,360 $28,147 $14,565 $33,648 $76,360 Channing/Lincoln Storm Drain $1,861,422 $1,361,826 $1 $2,089,595 $3,451,422 Southgate Neighborhood Storm Drains $0 $52,805 $73,491 $16,704 $143,000 Gailen/Bibbits SD Improvements $0 $0 $0 $0 $0 Clara Drive SD Improvements $0 $0 $0 $0 $0 Matadero Creek Pump Station & Trunks $0 $0 $0 $0 $0 Alma Street SD Improvements $55,117 $0 $0 $0* $0 B. Enhanced Maintenance SD Replacement/Rehabilitation CIP $1,062,322 $310,807 $139,950 $1,183,565 $1,634,322 Augmented SD Maintenance $0 $0 $0 $0 C. Innovative SD Projects $758,222 $4,590 $0 $753,632 $758,222 D. Augmented Storm Water Quality $87,359 $0 $0 $87,359 E. New CIP Engineer $129,594 $0 $0 $129,594 F. General Fund Loan Repayment $0 $0 $0 $0 SUBTOTALS $3,516,897 $3,813,443 $1,975,128 $228,007 $4,077,144 $6,280,279 To Storm Drainage Fund Reserves $424,616 Other storm drain expenses previously covered by General Fund subsidy $625,445 TOTALS $7,330,340 $7,330,340 Revenue Expenditures Prepared for the Storm Drain Oversight Committee by Joe Teresi and Tatiana Pham March 20, 2013 City of Palo Alto (ID # 3726) City Council Staff Report Report Type: Informational Report Meeting Date: 4/15/2013 City of Palo Alto Page 1 Summary Title: Investment Activity Report Title: City of Palo Alto Investment Activity Report for the Third Quarter, Fiscal Year 2013 From: City Manager Lead Department: Administrative Services Background The purpose of this report is to inform Council of the City’s investment portfolio status as of the end of the third quarter. The City’s investment policy requires that staff report quarterly to Council on the City’s portfolio composition compared to Council-adopted policy, portfolio performance, and other key investment and cash flow information. Discussion The City’s investment portfolio is detailed in Attachment B. It is grouped by investment type and includes the investment issuer, date of maturity, current market value, the book and face (par) value, and the weighted average maturity of each type of investment and of the entire portfolio. The par value of the City’s portfolio is $456.2 million; in comparison, last quarter it was $441.5 million. The growth in the portfolio of $14.7 million since the last quarter primarily results from the timing of cash flows. Such factors as the timing of payroll periods and delayed sales tax (“triple flip”) and in-lieu vehicle license fee tax payment received in January and May 2013 affect cash receipts. In addition, the seasonality and the timing of remittances and expenditures can significantly affect cash flow. The portfolio consists of $23.7 million in liquid accounts and $432.5 million in U. S. government treasury investments, agency securities, and certificates of deposit. The $432.5 million includes $110.5 million in investments maturing in less than two years, comprising 25.5 percent of the City of Palo Alto Page 2 City’s investment in notes and securities. The investment policy requires that at least $50 million be maintained in securities maturing in less than two years. The current market value of the portfolio is 103.5 percent of the book value. The market value of securities fluctuates, depending on how interest rates perform. When interest rates decrease, the market value of the securities in the City’s portfolio will likely increase; likewise, when interest rates increase, the market value of the securities will likely decrease. Understanding and showing market values is not only a reporting requirement, but essential to knowing the principal risks in actively buying and selling securities. It is important to note, however, that the City’s practice is to buy and hold investments until they mature so changes in market price do not affect the City’s investment principal. The market valuation is provided by Union Bank of California, which is the City’s safekeeping agent. The average life to maturity of the investment portfolio is 4.04 years compared to 3.78 years last quarter. Investments Made During the Third Quarter During the third quarter, $22.5 million of government agency securities with an average yield of 3.2% percent matured. During the same period, government securities totaling $47.3 million with an average yield of 1.5% percent were purchased. As higher yielding maturing investments continue to be re-invested at lower interest rates and interest rates continue to remain at historically low levels, the portfolio’s yield is expected to further decline. The City’s short-term money market and pool account decreased by $10.1 million compared to the second quarter. Investment staff continually monitors the City’s short-term cash flow needs and adjusts liquid funds to meet those needs. Availability of Funds for the Next Six Months Normally, the flow of revenues from the City’s utility billings and General Fund sources is sufficient to provide funds for ongoing expenditures in those respective funds. Projections indicate receipts will be $216.1 million and expenditures will be $211.4 million over the next six months, indicating an overall growth in the portfolio of $4.7 million. As of March 31, 2013, the City had $23.7 million deposited in the Local Agency Investment Fund (LAIF) and a money market account that could be withdrawn on a daily basis. In addition, investments totaling $19.5 million will mature between April 1, 2013 and September 30, 2013. On the basis of the above projections, staff is confident that the City will have more than sufficient funds or liquidity to meet expenditure requirements for the next six months. City of Palo Alto Page 3 Compliance with City Investment Policy During the third quarter, staff complied with all aspects of the investment policy. Attachment C lists the major restrictions in the City’s investment policy compared with the portfolio’s actual performance. Investment Yields Interest income on an accrual basis for the third quarter was $2.8 million. As of March 31, 2013, the yield to maturity of the City’s portfolio was 2.36 percent. This compares to a yield of 2.44 percent in the second quarter. The portfolio yield is expected to further decrease in future quarters as staff continues to re-invest higher-yielding maturing securities at lower interest rates. The City’s portfolio yield of 2.36 percent compares to LAIF’s average yield for the quarter of 0.30 percent and an average yield on the two-year and five-year Treasury bonds during the third quarter of approximately 0.25 percent and 0.81 percent, respectively. Yield Trends During the last five years, the Federal Open Market Committee (FOMC) maintained the historically low federal funds and discount rate at 0.25 and 0.75 percent, respectively. The FOMC outlook continues to forecast moderate economic growth with improvements in household spending, business investments, and the housing sector. The inflation rate continues to remain low even with a temporary rise due to gasoline prices. These improvements are offset by concerns with the U.S. unemployment rate, economic problems in Europe and slowdowns in Asia. The FOMC remains committed to keeping interest rates at exceptionally low levels as long as joblessness remains elevated. The FOMC monetary policy will continue to exert considerable downward pressure on the City’s portfolio yield. Funds Held by the City or Managed Under Contract Attachment A is a consolidated report of all City investment funds, including those not held directly in the investment portfolio. These include cash in the City’s regular bank account with Wells Fargo. The bond proceeds, reserves, and debt service payments being held by the City’s fiscal agents are subject to the requirements of the underlying debt indenture. The trustees for the bond funds are U.S. Bank and California Asset Management Program (CAMP). Bond funds with U.S. Bank are invested in federal agency and money market mutual funds that consist exclusively of U.S. Treasury securities. Bond funds in CAMP are invested in banker’s acceptance notes, certificates of deposit, commercial paper, federal agency securities, and repurchase agreements. The most recent data on funds held by the fiscal agent is as of March 31, 2013. Fiscal Impact This is an information report. City of Palo Alto Page 4 Environmental Review This information report is not a project under the California Environmental Quality Act; therefore, an environmental review is not required. Attachments: Attachment A: Consolidated Report of Cash Management (PDF) Attachment B: Investment Portfolio (PDF) Attachment C: Investment Policy Compliance (PDF) Book Value Market Value City Investment Portfolio (see Attachment B)462,744,962$ 478,874,314$ Other Funds Held by the City Cash with Wells Fargo Bank 826,387 826,387 (includes general and imprest accounts) Petty/Working Cash 12,328 12,328 Total - Other Funds Held By City 838,715 838,715 Funds Under Management of Third Party Trustees * US Bank Trust Services ** 2002 Downtown Parking Impvt. (Taxable) Certificates of Participation Reserve Fund 237,957 237,957 2009 Water Revenue Bonds (Build America Bonds) Project, Debt Service, Reserve, Cost of Issuance Funds 17,274,923 17,274,923 2011 Utility Revenue Refunding Bonds Debt Service, Reserve, and Cost of Issuance Funds 1,484,754 1,484,754 2012 University Ave. Parking Refunding Bonds Cost of Issuance Fund 16,625 16,625 California Asset Management Program (CAMP) *** 2010 General Obligation (Library) Bond Project Fund 15,952,102 15,952,102 2012 University Ave. Parking Refunding Bonds Reserve Fund 2,524,642 2,524,642 Total Under Trustee Management 37,491,003 37,491,003 GRAND TOTAL 501,074,680$ 517,204,032$ * These funds are subject to the requirements of the underlying debt indenture. ** U.S. Bank investments are in money market mutual funds that exclusively invest in U.S. Treasury securities. *** CAMP investments are in money market mutual fund which invest in bankers acceptance, certificate of deposit, commercial paper, federal agency securities, and repurchase agreements. Third Quarter, Fiscal Year 2012-13 (Unaudited) (Debt Service Proceeds) Attachment A Consolidated Report of Cash Management City of Palo Alto Cash and Investments City of Palo Alto City of Palo Alto Administration Svcs. Dept. 250 Hamilton Ave., 4th Floor Palo Alto, CA 94301(650)329-2362 March 31, 2013 Fund ALL - Portfolio Listings Investments by Fund Par Value Days To Maturity Maturity Date Current RateMarket ValueCUSIPInvestment #Issuer PurchaseDate Book Value YTM 360 YTM 365 Managed Pool Accounts Fidelity Investments158 3,357,461.26SYS158 10.01007/01/2011 3,357,461.26 0.009 0.0103,357,461.26 Local Agency Investment Fund159 20,366,653.02SYS159 10.29007/01/2011 20,392,565.72 0.286 0.29020,366,653.02 Subtotal and Average 23,724,114.28 23,724,114.28 23,750,026.98 0.247 0.250 1 Federal Agency Issues - Coupon Federal Agricultural Mortgage1028 3,000,000.0031315PPC7 02/21/2019 2,1521.79002/21/2012 3,062,280.00 1.765 1.7903,000,000.00 Federal Agricultural Mortgage1031 2,000,000.0031315PQC6 09/06/2018 1,9841.55003/06/2012 2,055,460.00 1.528 1.5502,000,000.00 Federal Agricultural Mortgage1052 1,500,000.0031315PTW9 04/10/2019 2,2001.87004/10/2012 1,539,495.00 1.844 1.8701,500,000.00 Federal Agricultural Mortgage1053 Call 2,000,000.0031315PTC3 04/12/2022 3,2982.87504/12/2012 2,001,460.00 2.835 2.8752,000,000.00 Federal Agricultural Mortgage1055 1,500,000.0031315PTQ2 04/10/2017 1,4701.26004/10/2012 1,526,160.00 1.242 1.2601,500,000.00 Federal Agricultural Mortgage1090 2,000,000.0031315PZQ5 06/05/2017 1,5261.11006/05/2012 2,029,660.00 1.094 1.1102,000,000.00 Federal Agricultural Mortgage1096 2,000,000.0031315PZQ5 06/05/2017 1,5261.11006/20/2012 2,029,660.00 0.998 1.0122,007,953.93 Federal Agricultural Mortgage1098 2,000,000.0031315PPK9 07/03/2017 1,5541.02007/03/2012 2,014,280.00 1.006 1.0202,000,000.00 Federal Agricultural Mortgage1109 2,000,000.0031315PSX8 08/23/2017 1,6051.03008/23/2012 2,021,120.00 1.015 1.0302,000,000.00 Federal Agricultural Mortgage1122 Call 1,000,000.0031315PNY1 11/21/2022 3,5212.19011/21/2012 985,070.00 2.163 2.193999,759.03 Federal Agricultural Mortgage1123 Call 1,500,000.0031315PQL6 11/29/2021 3,1642.00011/29/2012 1,487,145.00 1.972 2.0001,500,000.00 Federal Agricultural Mortgage1124 Call 1,750,000.0031315PNY1 11/21/2022 3,5212.19011/21/2012 1,723,872.50 2.166 2.1961,749,156.60 Federal Agricultural Mortgage1130 1,500,000.0031315PPX1 07/05/2022 3,3822.20012/13/2012 1,532,535.00 1.930 1.9571,530,640.93 Federal Agricultural Mortgage1134 750,000.0031315PB32 11/21/2022 3,5212.00012/19/2012 746,355.00 2.081 2.110742,852.60 Federal Agricultural Mortgage1136 1,500,000.0031315PTY5 12/27/2019 2,4611.48012/27/2012 1,506,285.00 1.395 1.4151,506,223.85 Federal Agricultural Mortgage1137 1,500,000.0031315PUE7 12/27/2022 3,5572.18001/04/2013 1,499,670.00 2.165 2.1961,497,905.47 Federal Agricultural Mortgage1138 740,000.0031315PEY1 12/30/2019 2,4644.50001/04/2013 862,514.40 1.514 1.535879,838.96 Federal Agricultural Mortgage1139 500,000.0031315PWN5 06/01/2021 2,9833.84001/04/2013 561,545.00 1.946 1.973569,916.06 Federal Agricultural Mortgage1141 1,500,000.0031315PUE7 12/27/2022 3,5572.18001/08/2013 1,499,670.00 2.195 2.2251,494,050.84 Federal Agricultural Mortgage1142 1,200,000.0031315PTW9 04/10/2019 2,2001.87001/09/2013 1,231,596.00 1.400 1.4201,231,017.37 Federal Agricultural Mortgage1143 451,000.0031315PPC7 02/21/2019 2,1521.79001/09/2013 460,362.76 1.372 1.392461,096.57 Federal Agricultural Mortgage1144 1,500,000.0031315PUE7 12/27/2022 3,5572.18001/23/2013 1,499,670.00 2.111 2.1411,505,091.25 Federal Agricultural Mortgage1147 2,595,000.0031315PUE7 12/27/2022 3,5572.18001/28/2013 2,594,429.10 2.199 2.2292,583,707.07 Federal Agricultural Mortgage1152 2,000,000.0031315PPF0 01/30/2019 2,1301.32002/11/2013 2,013,460.00 1.220 1.2372,009,298.50 Federal Agricultural Mortgage1155 1,500,000.0031315PPF0 01/30/2019 2,1301.32002/21/2013 1,510,095.00 1.262 1.2801,503,344.27 Federal Agricultural Mortgage1160 1,500,000.0031315PQM4 03/06/2018 1,8000.94003/07/2013 1,503,315.00 0.925 0.9371,500,144.15 Portfolio CPA AP Run Date: 04/09/2013 - 15:26 FI (PRF_FI) 7.1.1 Report Ver. 7.3.3a March 31, 2013 Par Value Days To Maturity Maturity Date Current RateMarket Value Fund ALL - Portfolio Listings Investments by Fund Page 2 CUSIP Investment #Issuer Purchase Date Book Value YTM 360 YTM 365 Federal Agency Issues - Coupon Federal Agricultural Mortgage1163 1,500,000.0031315PQM4 03/06/2018 1,8000.94003/08/2013 1,503,315.00 0.987 1.0011,495,587.18 Federal Agricultural Mortgage820 2,000,000.0031315PLR8 08/11/2014 4973.25008/11/2009 2,081,400.00 3.205 3.2502,000,000.00 Federal Agricultural Mortgage838 2,000,000.0031315PES4 12/30/2014 6382.82012/30/2009 2,081,000.00 2.781 2.8202,000,000.00 Federal Agricultural Mortgage839 1,500,000.0031315PEY1 12/30/2019 2,4644.50012/30/2009 1,748,340.00 4.438 4.5001,500,000.00 Federal Agricultural Mortgage840 2,000,000.0031315PGE3 01/19/2017 1,3894.12501/19/2010 2,217,900.00 4.068 4.1252,000,000.00 Federal Agricultural Mortgage866 1,000,000.0031315PAT6 05/17/2017 1,5073.75005/17/2010 1,110,400.00 3.698 3.7501,000,000.00 Federal Agricultural Mortgage923 1,500,000.0031315PNM7 12/28/2017 1,7323.15012/28/2010 1,640,685.00 3.106 3.1501,500,000.00 Federal Agricultural Mortgage935 1,500,000.0031315PQN2 02/03/2014 3081.34002/03/2011 1,514,670.00 1.321 1.3401,500,000.00 Federal Agricultural Mortgage936 1,500,000.0031315PRG6 01/31/2016 1,0352.44002/03/2011 1,585,815.00 2.406 2.4401,500,000.00 Federal Agricultural Mortgage942 1,500,000.0031315PTU3 03/09/2021 2,8994.16003/09/2011 1,701,675.00 4.103 4.1601,500,000.00 Federal Agricultural Mortgage951 1,500,000.0031315PUN7 04/29/2016 1,1242.41004/29/2011 1,586,550.00 2.376 2.4101,500,000.00 Federal Agricultural Mortgage975 1,000,000.0031315PA25 07/27/2016 1,2132.00007/27/2011 1,045,730.00 2.063 2.092997,109.67 Federal Farm Credit Bank1002 2,000,000.0031331KF96 10/14/2014 5610.70010/14/2011 2,013,640.00 0.690 0.7002,000,000.00 Federal Farm Credit Bank1006 2,000,000.0031331KK90 10/26/2016 1,3041.35010/26/2011 2,055,640.00 1.331 1.3502,000,000.00 Federal Farm Credit Bank1032 950,000.003133EAGE2 03/07/2016 1,0710.75003/07/2012 959,243.50 0.739 0.750950,000.00 Federal Farm Credit Bank1046 1,000,000.003133EAJU3 03/28/2016 1,0921.05003/28/2012 1,019,940.00 1.035 1.0501,000,000.00 Federal Farm Credit Bank1088 2,000,000.003133EASF6 11/20/2014 5980.50005/29/2012 2,007,500.00 0.458 0.4652,001,137.01 Federal Farm Credit Bank1092 1,500,000.003133EAUF3 06/14/2019 2,2651.50006/14/2012 1,515,075.00 1.479 1.5001,500,000.00 Federal Farm Credit Bank653 2,000,000.0031331VY91 08/16/2013 1375.28009/26/2006 2,039,180.00 4.827 4.8942,002,452.13 Federal Farm Credit Bank655 4,000,000.0031331V4E3 09/15/2014 5325.18010/12/2006 4,287,640.00 5.059 5.1304,002,343.63 Federal Farm Credit Bank657 2,039,000.0031331VWS1 04/17/2014 3815.20010/16/2006 2,145,965.94 5.100 5.1712,039,505.24 Federal Farm Credit Bank658 1,500,000.0031331S3H4 02/18/2014 3234.75010/16/2006 1,560,660.00 5.104 5.1751,495,366.43 Federal Farm Credit Bank659 3,000,000.0031331XBS0 11/25/2013 2385.05010/25/2006 3,095,070.00 4.979 5.0483,000,000.00 Federal Farm Credit Bank660 2,000,000.0031331XCY6 05/06/2015 7655.05011/06/2006 2,197,440.00 4.980 5.0502,000,000.00 Federal Farm Credit Bank690 2,000,000.0031331XSR4 03/14/2014 3474.87503/27/2007 2,089,760.00 4.807 4.8742,000,000.00 Federal Farm Credit Bank702 3,500,000.0031331XB27 08/05/2013 1265.20006/05/2007 3,562,055.00 5.130 5.2013,500,000.00 Federal Farm Credit Bank703 2,000,000.0031331XC26 06/05/2014 4305.25006/05/2007 2,119,000.00 5.178 5.2502,000,000.00 Federal Farm Credit Bank705 2,000,000.0031331XD74 12/18/2013 2615.33006/12/2007 2,074,160.00 5.257 5.3302,000,000.00 Federal Farm Credit Bank707 3,000,000.0031331XC26 06/05/2014 4305.25006/08/2007 3,178,500.00 5.409 5.4842,993,177.59 Federal Farm Credit Bank715 3,000,000.0031331XU75 08/13/2014 4995.30008/20/2007 3,198,570.00 5.128 5.1993,003,394.86 Federal Farm Credit Bank720 1,500,000.0031331X3H3 09/17/2014 5345.00009/17/2007 1,600,875.00 4.931 5.0001,500,000.00 Federal Farm Credit Bank721 1,500,000.0031331X5Y4 10/03/2014 5505.00010/03/2007 1,607,340.00 4.931 5.0001,500,000.00 Portfolio CPA AP Run Date: 04/09/2013 - 15:26 FI (PRF_FI) 7.1.1 Report Ver. 7.3.3a March 31, 2013 Par Value Days To Maturity Maturity Date Current RateMarket Value Fund ALL - Portfolio Listings Investments by Fund Page 3 CUSIP Investment #Issuer Purchase Date Book Value YTM 360 YTM 365 Federal Agency Issues - Coupon Federal Farm Credit Bank722 2,000,000.0031331YCJ7 10/30/2017 1,6734.90010/30/2007 2,365,160.00 4.832 4.9002,000,000.00 Federal Farm Credit Bank725 2,000,000.0031331YHQ6 12/15/2017 1,7194.62512/12/2007 2,346,240.00 4.561 4.6242,000,000.00 Federal Farm Credit Bank742 2,000,000.0031331VCQ7 10/19/2015 9314.80001/30/2008 2,227,660.00 3.945 4.0002,034,764.42 Federal Farm Credit Bank744 1,000,000.0031331SKH5 01/22/2015 6614.50001/30/2008 1,076,010.00 3.820 3.8731,009,847.93 Federal Farm Credit Bank747 1,500,000.0031331YSV3 02/11/2015 6813.85002/11/2008 1,598,970.00 3.797 3.8501,500,000.00 Federal Farm Credit Bank788 1,000,000.0031331GLT4 01/29/2016 1,0333.75003/04/2009 1,093,970.00 3.698 3.7491,000,000.00 Federal Farm Credit Bank823 2,000,000.0031331GL80 09/22/2014 5393.00008/21/2009 2,082,500.00 2.959 3.0002,000,000.00 Federal Farm Credit Bank850 2,000,000.0031331JFZ1 03/08/2017 1,4373.37503/08/2010 2,210,540.00 3.328 3.3752,000,000.00 Federal Farm Credit Bank870 1,000,000.0031331JQB2 06/02/2017 1,5233.00006/02/2010 1,091,140.00 2.958 3.0001,000,000.00 Federal Farm Credit Bank872 2,000,000.0031331YEL0 11/15/2016 1,3245.00006/04/2010 2,299,120.00 3.027 3.0702,125,957.90 Federal Farm Credit Bank903 1,000,000.0031331JN90 09/29/2020 2,7382.87509/29/2010 1,079,370.00 2.835 2.8751,000,000.00 Federal Farm Credit Bank910 2,000,000.0031331JX32 10/28/2016 1,3061.70010/28/2010 2,080,400.00 1.676 1.7002,000,000.00 Federal Farm Credit Bank918 2,000,000.0031331J5F6 12/16/2020 2,8163.62512/16/2010 2,282,080.00 3.575 3.6252,000,000.00 Federal Farm Credit Bank925 1,500,000.0031331JX32 10/28/2016 1,3061.70001/04/2011 1,560,300.00 2.576 2.6111,454,891.73 Federal Farm Credit Bank932 3,000,000.0031331J2M4 11/22/2016 1,3311.87501/14/2011 3,139,620.00 2.483 2.5182,935,034.60 Federal Farm Credit Bank937 2,000,000.0031331KBX7 02/10/2017 1,4112.87502/10/2011 2,161,960.00 2.835 2.8752,000,000.00 Federal Farm Credit Bank959 1,500,000.0031331KQD5 06/27/2017 1,5482.30006/27/2011 1,585,005.00 2.268 2.3001,500,000.00 Federal Farm Credit Bank .1100 Call 1,500,000.003133EAZN1 07/24/2020 2,6711.84007/24/2012 1,500,195.00 1.814 1.8401,500,000.00 Federal Farm Credit Bank .1117 Call 1,500,000.003133EA3N6 07/09/2020 2,6561.72010/09/2012 1,489,545.00 1.696 1.7201,500,000.00 Federal Home Loan Bank1012 2,000,000.00313376BR5 12/14/2018 2,0831.75012/16/2011 2,073,660.00 1.725 1.7492,000,000.00 Federal Home Loan Bank1017 2,000,000.00313376V36 01/25/2017 1,3951.00001/25/2012 2,025,940.00 0.986 1.0002,000,000.00 Federal Home Loan Bank1021 2,000,000.00313376VN2 12/22/2016 1,3611.10001/30/2012 2,034,900.00 1.084 1.1002,000,000.00 Federal Home Loan Bank1027 2,000,000.003133787M7 02/27/2017 1,4281.05002/21/2012 2,028,160.00 1.035 1.0492,000,000.00 Federal Home Loan Bank1038 1,500,000.003133782N0 03/10/2017 1,4390.87503/08/2012 1,510,545.00 0.999 1.0131,492,050.61 Federal Home Loan Bank1039 1,500,000.003133782M2 03/08/2019 2,1671.50003/08/2012 1,538,880.00 1.574 1.5961,491,922.65 Federal Home Loan Bank1041 1,500,000.00313378LA7 02/25/2022 3,2522.33003/20/2012 1,552,455.00 2.298 2.3301,500,000.00 Federal Home Loan Bank1042 2,000,000.00313378LY5 07/30/2015 8500.60003/20/2012 2,010,340.00 0.591 0.6002,000,000.00 Federal Home Loan Bank1045 2,000,000.00313378QP9 03/28/2017 1,4571.26003/28/2012 2,043,280.00 1.242 1.2602,000,000.00 Federal Home Loan Bank1049 1,500,000.00313378VG3 05/22/2019 2,2421.85004/09/2012 1,557,435.00 1.824 1.8501,500,000.00 Federal Home Loan Bank1057 1,500,000.00313378ZW4 04/17/2017 1,4771.05004/17/2012 1,519,500.00 1.035 1.0501,500,000.00 Federal Home Loan Bank1058 1,500,000.003133792L2 10/20/2017 1,6631.23004/20/2012 1,518,630.00 1.213 1.2301,500,000.00 Federal Home Loan Bank1065 Call 1,500,000.003133796H7 01/26/2022 3,2222.50004/26/2012 1,500,225.00 2.465 2.5001,500,000.00 Portfolio CPA AP Run Date: 04/09/2013 - 15:26 FI (PRF_FI) 7.1.1 Report Ver. 7.3.3a March 31, 2013 Par Value Days To Maturity Maturity Date Current RateMarket Value Fund ALL - Portfolio Listings Investments by Fund Page 4 CUSIP Investment #Issuer Purchase Date Book Value YTM 360 YTM 365 Federal Agency Issues - Coupon Federal Home Loan Bank1068 1,500,000.00313379BL2 12/29/2017 1,7331.25004/30/2012 1,524,435.00 1.232 1.2501,500,000.00 Federal Home Loan Bank1070 1,500,000.00313379BG3 04/27/2017 1,4871.07004/27/2012 1,514,370.00 1.055 1.0701,500,000.00 Federal Home Loan Bank1073 2,000,000.00313379EC9 11/18/2020 2,7882.00005/18/2012 2,040,260.00 1.972 2.0002,000,000.00 Federal Home Loan Bank1078 Call 2,000,000.00313379E96 05/23/2022 3,3392.60005/23/2012 2,003,760.00 2.564 2.6002,000,000.00 Federal Home Loan Bank1087 Call 2,000,000.00313379LL1 05/25/2017 1,5151.75005/25/2012 2,009,800.00 1.399 1.4192,026,427.20 Federal Home Loan Bank1089 2,000,000.00313379PD5 09/20/2017 1,6331.09006/07/2012 2,022,760.00 1.075 1.0902,000,000.00 Federal Home Loan Bank1101 Call 1,500,000.003133805L7 08/08/2022 3,4162.25008/08/2012 1,497,315.00 2.219 2.2501,500,000.00 Federal Home Loan Bank1102 Call 1,500,000.003133802M8 07/30/2018 1,9461.37507/30/2012 1,500,105.00 1.356 1.3751,500,000.00 Federal Home Loan Bank1104 Call 1,500,000.003133807E1 08/15/2022 3,4232.29008/15/2012 1,494,255.00 2.258 2.2901,500,000.00 Federal Home Loan Bank1105 Call 1,500,000.00313380E86 11/30/2018 2,0691.33008/30/2012 1,500,120.00 1.311 1.3301,500,000.00 Federal Home Loan Bank1112 Call 333,333.34313380JH1 08/23/2022 3,4312.48008/23/2012 333,393.34 2.446 2.480333,333.34 Federal Home Loan Bank1116 Call 1,500,000.00313380WT0 10/11/2022 3,4802.25010/11/2012 1,490,340.00 2.227 2.2581,498,928.13 Federal Home Loan Bank1121 Call 2,000,000.00313381AY1 11/21/2022 3,5212.25011/21/2012 1,986,920.00 2.224 2.2551,999,036.11 Federal Home Loan Bank1125 1,500,000.00313381C94 12/13/2019 2,4471.25011/30/2012 1,481,940.00 1.196 1.2121,503,575.58 Federal Home Loan Bank1126 Call 1,500,000.00313381DA0 12/05/2022 3,5352.19012/05/2012 1,489,140.00 2.165 2.1951,499,274.17 Federal Home Loan Bank1127 1,500,000.00313381GB5 11/30/2018 2,0691.00011/30/2012 1,492,170.00 0.986 1.0001,500,000.00 Federal Home Loan Bank1128 Call 2,000,000.00313381HW8 12/19/2022 3,5492.19012/19/2012 1,996,280.00 2.168 2.1981,998,542.50 Federal Home Loan Bank1129 Call 1,500,000.00313381HW8 12/19/2022 3,5492.19012/19/2012 1,497,210.00 2.176 2.2061,497,813.75 Federal Home Loan Bank1131 1,500,000.00313381C94 12/13/2019 2,4471.25012/13/2012 1,481,940.00 1.232 1.2491,500,000.00 Federal Home Loan Bank1135 1,500,000.00313376BR5 12/14/2018 2,0831.75012/19/2012 1,555,245.00 1.075 1.0901,554,509.29 Federal Home Loan Bank1140 1,500,000.00313376BR5 12/14/2018 2,0831.75001/08/2013 1,555,245.00 1.117 1.1321,550,921.32 Federal Home Loan Bank1146 Call 425,000.00313381DA0 12/05/2022 3,5352.19001/25/2013 421,923.00 2.201 2.232423,435.88 Federal Home Loan Bank1150 Call 1,500,000.003133825Z2 02/22/2023 3,6142.50002/22/2013 1,500,045.00 2.465 2.5001,500,000.00 Federal Home Loan Bank1154 1,500,000.003133XRFZ8 06/08/2018 1,8944.75002/21/2013 1,782,255.00 1.020 1.0351,780,478.81 Federal Home Loan Bank1156 1,315,000.003133XHRJ3 12/10/2021 3,1755.00002/25/2013 1,649,351.90 1.825 1.8501,645,769.85 Federal Home Loan Bank1157 2,000,000.003133XSR59 12/14/2018 2,0833.75002/25/2013 2,292,100.00 1.128 1.1442,286,686.86 Federal Home Loan Bank1165 Call 2,000,000.00313382KL6 03/26/2018 1,8201.30003/26/2013 2,001,580.00 1.282 1.3002,000,000.00 Federal Home Loan Bank1167 Call 1,500,000.00313382H63 03/22/2018 1,8161.30003/22/2013 1,500,855.00 1.282 1.3001,500,000.00 Federal Home Loan Bank1168 530,000.003133XSR59 12/14/2018 2,0833.75003/11/2013 607,406.50 1.165 1.182604,812.09 Federal Home Loan Bank652 2,000,000.0031339Y7K2 07/16/2013 1065.00009/26/2006 2,028,380.00 4.850 4.9182,000,396.19 Federal Home Loan Bank654 2,000,000.003133XHBL5 06/13/2014 4384.87510/12/2006 2,112,040.00 5.020 5.0891,995,711.29 Federal Home Loan Bank663 2,000,000.003133XHXW7 11/27/2013 2404.87511/27/2006 2,062,280.00 4.808 4.8752,000,000.00 Portfolio CPA AP Run Date: 04/09/2013 - 15:26 FI (PRF_FI) 7.1.1 Report Ver. 7.3.3a March 31, 2013 Par Value Days To Maturity Maturity Date Current RateMarket Value Fund ALL - Portfolio Listings Investments by Fund Page 5 CUSIP Investment #Issuer Purchase Date Book Value YTM 360 YTM 365 Federal Agency Issues - Coupon Federal Home Loan Bank667 2,000,000.003133XHW57 12/13/2013 2564.87512/14/2006 2,066,320.00 4.806 4.8732,000,000.00 Federal Home Loan Bank699 2,000,000.003133XGJ96 09/13/2013 1655.25005/16/2007 2,046,280.00 4.943 5.0112,001,807.11 Federal Home Loan Bank706 1,000,000.003133XGJ96 09/13/2013 1655.25006/08/2007 1,023,140.00 5.369 5.444999,262.20 Federal Home Loan Bank710 2,500,000.003133XLDG5 06/13/2014 4385.37506/28/2007 2,654,450.00 5.300 5.3742,500,000.00 Federal Home Loan Bank713 3,000,000.003133XLDG5 06/13/2014 4385.37508/20/2007 3,185,340.00 5.099 5.1703,006,107.53 Federal Home Loan Bank730 2,000,000.003133XPBA1 03/13/2015 7113.50001/25/2008 2,123,720.00 3.451 3.4992,000,000.00 Federal Home Loan Bank741 3,000,000.003133XPBA1 03/13/2015 7113.50001/30/2008 3,185,580.00 3.869 3.9232,978,537.37 Federal Home Loan Bank777 3,000,000.003133XSP93 12/13/2013 2563.12501/16/2009 3,062,490.00 2.794 2.8333,011,073.59 Federal Home Loan Bank789 2,000,000.003133XTCS3 03/13/2014 3463.00003/16/2009 2,053,720.00 2.958 2.9992,000,000.00 Federal Home Loan Bank793 3,000,000.003133XTFQ4 04/01/2014 3652.90004/01/2009 3,081,600.00 2.860 2.9003,000,000.00 Federal Home Loan Bank818 2,000,000.003133XTYD2 06/16/2015 8064.00006/16/2009 2,160,360.00 3.945 4.0002,000,000.00 Federal Home Loan Bank822 3,000,000.003133XUMS9 09/13/2019 2,3564.50008/12/2009 3,590,700.00 4.437 4.4993,000,000.00 Federal Home Loan Bank827 1,000,000.003133XUMR1 09/12/2014 5293.25010/21/2009 1,043,410.00 2.594 2.6311,008,340.93 Federal Home Loan Bank830 3,000,000.003133XDTL5 12/21/2015 9945.00010/21/2009 3,372,360.00 3.101 3.1453,136,677.63 Federal Home Loan Bank832 3,000,000.003133XVRJ2 12/09/2016 1,3483.50011/19/2009 3,324,990.00 3.325 3.3723,012,468.40 Federal Home Loan Bank833 1,200,000.003133MJQF0 08/15/2016 1,2325.50011/19/2009 1,399,632.00 3.304 3.3501,277,271.65 Federal Home Loan Bank847 2,000,000.003133XWX95 03/13/2015 7112.75002/19/2010 2,094,500.00 2.711 2.7492,000,000.00 Federal Home Loan Bank859 1,500,000.003133XEUG2 03/11/2016 1,0754.87504/26/2010 1,694,940.00 3.227 3.2721,563,908.23 Federal Home Loan Bank860 1,500,000.003133XHVS8 12/09/2016 1,3485.00004/26/2010 1,738,125.00 3.430 3.4781,574,614.32 Federal Home Loan Bank878 3,000,000.003133XVNU1 12/12/2014 6202.75006/23/2010 3,126,870.00 2.052 2.0813,032,362.10 Federal Home Loan Bank879 1,500,000.003133XUMR1 09/12/2014 5293.25006/23/2010 1,565,115.00 1.975 2.0031,525,821.91 Federal Home Loan Bank883 1,500,000.003133XWNB1 06/12/2015 8022.87506/29/2010 1,582,725.00 2.099 2.1281,523,217.60 Federal Home Loan Bank885 2,000,000.003133XBDM4 02/13/2015 6834.75006/29/2010 2,165,500.00 2.022 2.0512,095,646.92 Federal Home Loan Bank887 1,500,000.003133705T1 04/08/2013 71.08007/08/2010 1,500,360.00 1.065 1.0801,500,000.00 Federal Home Loan Bank900 2,000,000.00313370TB4 07/29/2013 1190.85008/30/2010 2,004,800.00 0.838 0.8502,000,000.00 Federal Home Loan Bank901 1,000,000.003133717D2 02/27/2014 3321.00009/27/2010 1,007,460.00 0.986 1.0001,000,000.00 Federal Home Loan Bank907 2,000,000.00313371FB7 08/28/2015 8791.35010/22/2010 2,046,060.00 1.331 1.3502,000,000.00 Federal Home Loan Bank911 1,500,000.00313371PV2 12/09/2016 1,3481.62511/09/2010 1,559,190.00 1.602 1.6241,500,000.00 Federal Home Loan Bank912 1,500,000.00313371PU4 12/13/2013 2560.50011/09/2010 1,502,430.00 0.589 0.5971,500,000.00 Federal Home Loan Bank913 2,000,000.00313371VF0 12/11/2015 9841.62511/19/2010 2,062,640.00 1.602 1.6242,000,000.00 Federal Home Loan Bank914 2,000,000.00313371WB8 07/24/2014 4791.15011/24/2010 2,024,080.00 1.134 1.1502,000,000.00 Federal Home Loan Bank920 1,500,000.00313371PV2 12/09/2016 1,3481.62512/15/2010 1,559,190.00 2.550 2.5851,451,013.82 Portfolio CPA AP Run Date: 04/09/2013 - 15:26 FI (PRF_FI) 7.1.1 Report Ver. 7.3.3a March 31, 2013 Par Value Days To Maturity Maturity Date Current RateMarket Value Fund ALL - Portfolio Listings Investments by Fund Page 6 CUSIP Investment #Issuer Purchase Date Book Value YTM 360 YTM 365 Federal Agency Issues - Coupon Federal Home Loan Bank921 1,500,000.00313371NW2 12/11/2015 9841.37512/15/2010 1,539,795.00 2.191 2.2211,467,756.68 Federal Home Loan Bank924 1,500,000.003133MJQF0 08/15/2016 1,2325.50001/04/2011 1,749,540.00 2.516 2.5501,638,138.30 Federal Home Loan Bank926 1,500,000.00313371PV2 12/09/2016 1,3481.62501/04/2011 1,559,190.00 2.592 2.6291,448,849.17 Federal Home Loan Bank931 3,000,000.003133XFPR1 06/10/2016 1,1665.37501/14/2011 3,474,210.00 2.363 2.3963,265,999.99 Federal Home Loan Bank938 1,500,000.00313372Q56 02/26/2016 1,0612.65002/18/2011 1,595,985.00 2.613 2.6491,500,000.00 Federal Home Loan Bank940 2,000,000.003133X0PF0 08/15/2018 1,9625.37502/17/2011 2,452,700.00 3.423 3.4702,178,776.72 Federal Home Loan Bank947 1,500,000.00313373GQ9 10/29/2014 5761.75004/29/2011 1,534,995.00 1.726 1.7501,500,000.00 Federal Home Loan Bank982 2,000,000.00313375KP1 03/15/2017 1,4441.50009/15/2011 2,062,500.00 1.479 1.5002,000,000.00 Federal Home Loan Bank985 2,000,000.00313375M87 10/14/2016 1,2921.27009/14/2011 2,049,340.00 1.252 1.2702,000,000.00 Federal Home Loan Bank990 2,000,000.00313370TW8 09/09/2016 1,2572.00009/13/2011 2,107,980.00 1.163 1.1802,054,607.10 Federal Home Loan Bank992 2,000,000.00313371ZX7 12/08/2017 1,7122.62509/13/2011 2,159,620.00 1.526 1.5472,095,854.66 Federal Home Loan Bank - S & P792 2,000,000.003133XTFD3 03/27/2014 3602.85003/27/2009 2,052,840.00 2.810 2.8502,000,000.00 Fed. Home Loan Mortgage Corp.1007 Call 2,000,000.003134G23Y6 11/15/2016 1,3241.57011/15/2011 2,015,200.00 1.548 1.5702,000,000.00 Fed. Home Loan Mortgage Corp.1024 Call 2,000,000.003134G3MD9 11/14/2017 1,6881.50002/14/2012 2,020,380.00 1.479 1.5002,000,000.00 Fed. Home Loan Mortgage Corp.1025 Call 2,000,000.003134G3MF4 02/07/2019 2,1382.00002/07/2012 2,022,660.00 1.972 2.0002,000,000.00 Fed. Home Loan Mortgage Corp.1036 1,500,000.003137EABA6 11/17/2017 1,6915.12503/01/2012 1,791,945.00 1.227 1.2441,759,186.17 Fed. Home Loan Mortgage Corp.1074 Call 2,000,000.003134G3VH0 05/24/2017 1,5141.20005/24/2012 2,003,180.00 1.183 1.2002,000,000.00 Fed. Home Loan Mortgage Corp.1081 Call 2,000,000.003134G3VS6 05/30/2017 1,5201.25005/30/2012 2,002,440.00 1.232 1.2502,000,000.00 Fed. Home Loan Mortgage Corp.1085 Call 2,000,000.003134G3VW7 06/14/2017 1,5351.25006/14/2012 2,003,940.00 1.232 1.2502,000,000.00 Fed. Home Loan Mortgage Corp.1086 Call 2,000,000.003134G3WB2 06/07/2017 1,5281.30006/07/2012 2,003,720.00 1.282 1.3002,000,000.00 Fed. Home Loan Mortgage Corp.1097 Call 1,500,000.003134G3XT2 07/17/2017 1,5681.05007/17/2012 1,510,065.00 1.035 1.0501,500,000.00 Fed. Home Loan Mortgage Corp.1103 Call 3,000,000.003134G3A26 08/06/2020 2,6843.00008/06/2012 3,028,230.00 2.602 2.6383,071,415.00 Fed. Home Loan Mortgage Corp.1106 Call 1,500,000.003134G3A91 08/22/2019 2,3341.40008/22/2012 1,497,270.00 1.380 1.4001,500,000.00 Fed. Home Loan Mortgage Corp.1113 Call 1,500,000.003134G3L73 12/26/2019 2,4601.50009/26/2012 1,509,375.00 1.479 1.5001,500,000.00 Fed. Home Loan Mortgage Corp.1153 1,500,000.003137EADP1 03/07/2018 1,8010.87502/11/2013 1,497,030.00 0.960 0.9731,492,915.45 Fed. Home Loan Mortgage Corp.1162 Call 1,500,000.003134G36X3 03/28/2018 1,8221.12503/28/2013 1,502,655.00 1.109 1.1251,500,000.00 Fed. Home Loan Mortgage Corp.1166 1,500,000.003137EADN6 01/12/2018 1,7470.75003/15/2013 1,490,835.00 0.948 0.9621,485,176.81 Fed. Home Loan Mortgage Corp.679 1,500,000.003128X1KG1 06/12/2013 724.00002/07/2007 1,511,760.00 5.010 5.0801,497,295.32 Fed. Home Loan Mortgage Corp.682 2,000,000.003128X1KG1 06/12/2013 724.00002/15/2007 2,015,680.00 4.970 5.0401,996,520.78 Fed. Home Loan Mortgage Corp.714 2,000,000.003134A4UM4 01/15/2014 2894.50008/20/2007 2,068,280.00 5.033 5.1031,991,959.29 Fed. Home Loan Mortgage Corp.734 1,500,000.003128X6N85 01/31/2015 6704.30001/31/2008 1,609,830.00 4.241 4.3001,500,000.00 Fed. Home Loan Mortgage Corp.828 2,000,000.003128X33E1 01/26/2015 6655.05010/21/2009 2,172,900.00 2.713 2.7512,077,359.68 Portfolio CPA AP Run Date: 04/09/2013 - 15:26 FI (PRF_FI) 7.1.1 Report Ver. 7.3.3a March 31, 2013 Par Value Days To Maturity Maturity Date Current RateMarket Value Fund ALL - Portfolio Listings Investments by Fund Page 7 CUSIP Investment #Issuer Purchase Date Book Value YTM 360 YTM 365 Federal Agency Issues - Coupon Fed. Home Loan Mortgage Corp.884 4,000,000.003128X2RA5 12/01/2015 9745.30006/29/2010 4,505,080.00 2.327 2.3604,292,708.32 Fed. Home Loan Mortgage Corp.890 4,000,000.003134A4VG6 11/17/2015 9604.75007/07/2010 4,455,200.00 2.135 2.1654,255,174.92 Fed. Home Loan Mortgage Corp.927 1,500,000.003134A4ZT4 01/19/2016 1,0234.75001/04/2011 1,682,070.00 2.215 2.2451,598,900.63 Fed. Home Loan Mortgage Corp.993 2,000,000.003137EAAY5 08/23/2017 1,6055.50009/13/2011 2,409,700.00 1.415 1.4352,341,268.45 Federal National Mortgage Asso1022 2,000,000.0031398ADM1 06/12/2017 1,5335.37501/25/2012 2,384,520.00 1.317 1.3362,326,070.21 Federal National Mortgage Asso1023 2,590,000.003136FPXN2 11/24/2017 1,6982.30001/25/2012 2,762,804.80 1.406 1.4262,690,575.12 Federal National Mortgage Asso1033 3,000,000.003135G0JA2 04/27/2017 1,4871.12503/01/2012 3,054,750.00 1.134 1.1502,997,037.98 Federal National Mortgage Asso1034 1,500,000.003135G0AL7 03/15/2016 1,0792.25003/01/2012 1,579,005.00 0.856 0.8681,560,075.02 Federal National Mortgage Asso1035 2,000,000.0031398ALG5 01/23/2018 1,7584.37703/01/2012 2,329,520.00 1.388 1.4082,273,185.86 Federal National Mortgage Asso1047 Call 3,000,000.003136G0AX9 04/17/2019 2,2072.00004/17/2012 3,043,740.00 1.972 2.0003,000,000.00 Federal National Mortgage Asso1048 Call 2,000,000.003136G0AW1 10/16/2020 2,7552.35004/16/2012 2,034,060.00 2.317 2.3502,000,000.00 Federal National Mortgage Asso1051 Call 2,000,000.003136G0CG4 04/26/2017 1,4861.40004/26/2012 1,998,900.00 1.380 1.4002,000,000.00 Federal National Mortgage Asso1054 Call 2,000,000.003136G0CY5 04/30/2019 2,2202.05004/30/2012 2,029,880.00 2.021 2.0502,000,000.00 Federal National Mortgage Asso1056 Call 1,500,000.003136G0CL3 07/26/2017 1,5771.50004/26/2012 1,501,545.00 1.479 1.5001,500,000.00 Federal National Mortgage Asso1059 Call 2,000,000.003136G0DU2 04/30/2020 2,5862.00004/30/2012 2,021,440.00 1.972 2.0002,000,000.00 Federal National Mortgage Asso1061 Call 1,500,000.003136G0EC1 04/30/2020 2,5862.05004/30/2012 1,515,795.00 2.021 2.0501,500,000.00 Federal National Mortgage Asso1062 Call 2,000,000.003136G0DL2 10/30/2019 2,4032.00004/30/2012 2,002,820.00 1.972 2.0002,000,000.00 Federal National Mortgage Asso1063 Call 1,500,000.003136G0DQ1 07/26/2016 1,2121.00004/26/2012 1,500,840.00 0.986 1.0001,500,000.00 Federal National Mortgage Asso1064 Call 1,500,000.003136G0GA3 05/16/2017 1,5061.20005/16/2012 1,515,945.00 1.183 1.2001,500,000.00 Federal National Mortgage Asso1066 Call 2,000,000.003136G0FJ5 10/30/2020 2,7692.00004/30/2012 2,011,720.00 1.972 2.0002,000,000.00 Federal National Mortgage Asso1071 Call 2,000,000.003136G0DL2 10/30/2019 2,4032.00004/30/2012 2,002,820.00 1.972 2.0002,000,000.00 Federal National Mortgage Asso1072 Call 1,180,000.003136G0FG1 11/14/2016 1,3231.12505/14/2012 1,181,416.00 1.109 1.1251,180,000.00 Federal National Mortgage Asso1077 Call 1,000,000.003136G0FV8 11/15/2019 2,4192.00005/15/2012 1,001,850.00 1.972 2.0001,000,000.00 Federal National Mortgage Asso1080 Call 2,000,000.003136G0JB8 05/30/2017 1,5201.20005/30/2012 2,002,980.00 1.183 1.2002,000,000.00 Federal National Mortgage Asso1082 450,000.003136FPYB7 05/23/2017 1,5132.05005/11/2012 474,646.50 1.070 1.085467,466.77 Federal National Mortgage Asso1094 Call 2,000,000.003136G0PB1 06/28/2017 1,5491.16006/28/2012 2,004,940.00 1.144 1.1602,000,000.00 Federal National Mortgage Asso1099 Call 1,500,000.003136G0UB5 02/15/2018 1,7811.15008/15/2012 1,502,745.00 1.134 1.1501,500,000.00 Federal National Mortgage Asso1110 Call 475,000.003136G0YX3 09/13/2022 3,4522.50009/13/2012 475,741.00 2.465 2.500475,000.00 Federal National Mortgage Asso1111 Call 2,000,000.003136G0YT2 09/06/2022 3,4452.35009/06/2012 2,001,400.00 2.317 2.3502,000,000.00 Federal National Mortgage Asso1114 Call 2,000,000.003136G0J36 10/11/2022 3,4802.50010/11/2012 2,001,400.00 2.465 2.5002,000,000.00 Federal National Mortgage Asso1115 Call 1,500,000.003136G0J36 10/11/2022 3,4802.50010/11/2012 1,501,050.00 2.465 2.5001,500,000.00 Federal National Mortgage Asso1118 500,000.003136FPXN2 11/24/2017 1,6982.30010/18/2012 533,360.00 0.927 0.940530,783.05 Portfolio CPA AP Run Date: 04/09/2013 - 15:26 FI (PRF_FI) 7.1.1 Report Ver. 7.3.3a March 31, 2013 Par Value Days To Maturity Maturity Date Current RateMarket Value Fund ALL - Portfolio Listings Investments by Fund Page 8 CUSIP Investment #Issuer Purchase Date Book Value YTM 360 YTM 365 Federal Agency Issues - Coupon Federal National Mortgage Asso1119 Call 1,500,000.003136G02Z3 11/15/2022 3,5152.25011/15/2012 1,493,565.00 2.235 2.2661,497,835.00 Federal National Mortgage Asso1120 Call 1,000,000.003135G0RC9 10/25/2022 3,4942.20010/25/2012 987,190.00 2.196 2.226997,704.00 Federal National Mortgage Asso1148 Call 2,000,000.003135G0UJ0 02/22/2023 3,6142.50002/22/2013 2,006,740.00 2.465 2.5002,000,000.00 Federal National Mortgage Asso1149 1,500,000.003135G0TG8 02/08/2018 1,7740.87501/31/2013 1,495,590.00 1.019 1.0341,488,746.50 Federal National Mortgage Asso1151 Call 1,500,000.003136G1DT3 03/06/2023 3,6262.55003/06/2013 1,505,280.00 2.515 2.5501,500,000.00 Federal National Mortgage Asso1158 Call 2,000,000.003136G03K5 11/15/2018 2,0541.21002/25/2013 2,002,200.00 1.197 1.2141,999,508.74 Federal National Mortgage Asso1159 Call 1,500,000.003135G0VL4 03/20/2018 1,8141.12503/20/2013 1,504,005.00 1.109 1.1251,500,000.00 Federal National Mortgage Asso1161 Call 2,000,000.003136G1FS3 03/20/2023 3,6402.50003/20/2013 2,007,580.00 2.465 2.5002,000,000.00 Federal National Mortgage Asso1164 Call 2,000,000.003135G0UK7 02/28/2018 1,7941.20003/15/2013 2,000,280.00 1.183 1.1992,000,000.00 Federal National Mortgage Asso743 3,000,000.00313586UB3 12/10/2015 98310.35001/30/2008 3,798,450.00 3.987 4.0433,432,454.77 Federal National Mortgage Asso761 Callable 1,000,000.0031398APN6 04/08/2013 74.00004/08/2008 1,000,970.00 3.945 4.0001,000,000.00 Federal National Mortgage Asso763 Callable 1,000,000.003136F9ES8 04/02/2013 14.00004/02/2008 1,000,320.00 3.945 4.0001,000,000.00 Federal National Mortgage Asso829 2,000,000.0031359MXX6 03/02/2015 7005.00010/21/2009 2,179,820.00 2.736 2.7742,078,869.19 Federal National Mortgage Asso891 2,000,000.0031359MZC0 10/15/2015 9274.37507/07/2010 2,200,840.00 2.100 2.1292,107,262.57 Federal National Mortgage Asso928 1,500,000.0031359MS61 07/15/2016 1,2015.37501/04/2011 1,738,320.00 2.422 2.4551,633,882.39 Federal National Mortgage Asso988 2,000,000.003135G0AL7 03/15/2016 1,0792.25009/13/2011 2,105,340.00 1.029 1.0442,069,455.19 Federal National Mortgage Asso991 2,000,000.0031359M4D2 02/13/2017 1,4145.00009/13/2011 2,336,160.00 1.272 1.2902,276,229.91 Tennessee Valley Authority1132 500,000.00880591EL2 02/15/2021 2,8773.87512/14/2012 579,910.00 1.596 1.618582,880.77 Tennessee Valley Authority1133 1,010,000.00880591EN8 08/15/2022 3,4231.87512/14/2012 997,637.60 1.893 1.9201,006,118.43 Tennessee Valley Authority1145 1,500,000.00880591EL2 02/15/2021 2,8773.87501/23/2013 1,739,730.00 1.647 1.6691,742,652.71 Tennessee Valley Authority1170 1,500,000.00880591EC2 04/01/2018 1,8264.50003/25/2013 1,757,940.00 0.913 0.9261,761,325.91 Tennessee Valley Authority716 3,000,000.00880591DY5 06/15/2015 8054.37508/20/2007 3,263,280.00 5.163 5.2352,953,730.81 Tennessee Valley Authority861 2,000,000.00880591EA6 07/18/2017 1,5695.50004/26/2010 2,398,100.00 3.602 3.6522,138,338.19 Tennessee Valley Authority954 2,000,000.00880591CU4 12/15/2017 1,7196.25005/23/2011 2,491,820.00 2.624 2.6612,308,018.26 Subtotal and Average 438,779,395.49 431,983,333.34 453,089,751.84 2.434 2.468 1,562 Treasury Securities - Coupon U.S. Treasury939 2,000,000.00912828JW1 12/31/2013 2741.50002/17/2011 2,020,160.00 1.292 1.3102,002,777.91 Subtotal and Average 2,002,777.91 2,000,000.00 2,020,160.00 1.292 1.310 274 Total Investments and Average 464,506,287.68 457,707,447.62 478,859,938.82 2.318 2.350 1,477 Portfolio CPA AP Run Date: 04/09/2013 - 15:26 FI (PRF_FI) 7.1.1 Report Ver. 7.3.3a 1 General Investment Guidelines: a) The max. stated final maturity of individual securities in the portfolio should be 10 years.Full Compliance b) A max. of 30 percent of the par value of the portfolio shall be invested in securities with maturities beyond 5 years.29.1% c) The City shall maintain a minimum of one month's cash needs in short term investments.Full Compliance d) At least $50 million shall be maintained in securities maturing in less than 2 years. Plus two managed pool accounts which provide instant liquidity: - Local Agency Investment Fund (LAIF) - maximum investment limit is$50 million - Fidelity Investments e) Should market value of the portfolio fall below 95 percent of the book value, report this fact within a reasonable time to the City Council and evaluate if there are risk of holding securities to maturity.103.5% d) Commitments to purchase securities newly introduced on the market shall be made no more than three (3) working days before pricing.Full Compliance f) Whenever possible, the City will obtain three or more quotations on the purchase or sale of comparable securities (excludes new issues, LAIF, City of Palo Alto bonds, money market accounts, and mutual funds).Full Compliance 2 U.S. Government Securities:Full Compliance a) There is no limit on purchase of these securities. b) Securities will not exceed 10 years maturity. 3 U.S. Government Agency Securities:Full Compliance a) There is no limit on purchase of these securities except for: Callable and Multi-step-up securities provided that: - The potential call dates are known at the time of purchase;Full Compliance - the interest rates at which they "step-up" are known at the time of purchase; and Full Compliance - the entire face value of the security is redeemed at the call date.Full Compliance - No more than 25 percent of the par value of portfolio.24.2% b) Securities will not exceed 10 years maturity. 4 Bonds of the State of California Municipal Agencies None Held a)Having at time of investment a minimum Double A (AA/AA2) rating as provided by a nationally recognized rating service (e.g., Moody’s and/or Standard and Poor’s). b)May not exceed 10 percent of the par value of the portfolio. 5 Certificates of Deposit:Full Compliance a) May not exceed 20 percent of the par value of the portfolio;None Held b) No more than 10 percent of the par value of the portfolio in collateralized CDs in any institution. c) Purchase collateralized deposits only from federally insured large banks that are rated by a nationally recognized rating agency (e.g. Moody's, Standard & Poor's, etc.). d) For non-rated banks, deposit should be limited to amounts federally insured (FDIC) e) Rollovers are not permitted without specific instruction from authorized City staff. 6 Banker's Acceptance Notes:None Held a) No more than 30 percent of the par value of the portfolio. b) Not to exceed 180 days maturity. c) No more than $5 million with any one institution. 7 Commercial Paper:None Held a) No more than 15 percent of the par value of the portfolio. Attachment C Investment Policy Compliance As of March 31, 2013 Investment Policy Requirements Compliance Check $110.5 million $20.4 million $3.4 million Attachment C Investment Policy Compliance As of March 31, 2013 Investment Policy Requirements Compliance Check b) Having highest letter or numerical rating from a nationally recognized rating service. c) Not to exceed 270 days maturity. d) No more than $3 million or 10 percent of the outstanding commercial paper of any one institution, whichever is lesser. 8 Short-Term Repurchase Agreement (REPO):None Held a) Not to exceed 1 year. b) Market value of securities that underlay a repurchase agreement shall be valued at 102 percent or greater of the funds borrowed against those securities. 9 Money Market Deposit Accounts Full Compliance a) Liquid bank accounts which seek to maintain a net asset value of $1.00. 10 Mutual Funds:None Held a) No more than 20 percent of the par value of the portfolio. b) No more than 10 percent of the par value with any one institution. 11 Negotiable Certificates of Deposit (NCD):None Held a) No more than 10 percent of the par value of the portfolio. b) No more than $5 million in any one institution. 12 Medium-Term Corporate Notes:None Held a) No more than 10 percent of the par value of the portfolio. b) Not to exceed 5 years maturity. c) Securities eligible for investment shall have a minimum rating of AA from a nationally recognized rating service. d) No more than $5 million of the par value may be invested in securities of any single issuer, other than the U.S. Government, its agencies and instrumentality. e) If securities owned by the City are downgraded by either rating agencies to a level below AA it shall be the City's policy to review the credit situation and make a determination as to whether to sell or retain such securities. 13 Prohibited Investments: a) Reverse Repurchase Agreements b) Derivatives as defined in Appendix B of the Investment Policy 14 All securities shall be delivered to the City's safekeeping custodian, and held in the name of the City, with the exception of : - Certificates of Deposit, Mutual Funds, and LAIF Full Compliance None Held Full Compliance CITY OF PALO ALTO OFFICE OF THE CITY CLERK April 15, 2013 The Honorable City Council Palo Alto, California Independent Police Auditors Year-End Report for 2012 Attached you will find the Independent Police Auditors Year-End Report for 2012. ATTACHMENTS: IPA Report 2012 July to December (PDF) Department Head: Donna Grider, City Clerk Page 2