HomeMy WebLinkAbout2024-09-23 City Council Agenda PacketCITY COUNCIL
Special Meeting
Monday, September 23, 2024
Council Chambers & Hybrid
5:30 PM
Palo Alto City Council meetings will be held as “hybrid” meetings with the option to attend by
teleconference or in person. Information on how the public may observe and participate in the
meeting is located at the end of the agenda. The meeting will be broadcast on Cable TV
Channel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto, and streamed to
Midpen Media Center https://midpenmedia.org.
VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238)
Meeting ID: 362 027 238 Phone:1(669)900‐6833
PUBLIC COMMENTS
General Public Comment for items not on the agenda will be accepted in person for up to three
minutes or an amount of time determined by the Chair. General public comment will be heard
for 30 minutes. Additional public comments, if any, will be heard at the end of the agenda.
Public comments for agendized items will be accepted both in person and via Zoom for up to
three minutes or an amount of time determined by the Chair. Request to speak will be taken
until 5 minutes after the staff’s presentation or as determined by the Chair. Written public
comments can be submitted in advance to city.council@CityofPaloAlto.org and will be provided
to the Council and available for inspection on the City’s website. Please clearly indicate which
agenda item you are referencing in your subject line.
PowerPoints, videos, or other media to be presented during public comment are accepted only
by email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received,
the Clerk will have them shared at public comment for the specified item. To uphold strong
cybersecurity management practices, USB’s or other physical electronic storage devices are not
accepted.
Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that: (1) sticks,
posts, poles or similar/other type of handle objects are strictly prohibited; (2) the items do not
create a facility, fire, or safety hazard; and (3) persons with such items remain seated when
displaying them and must not raise the items above shoulder level, obstruct the view or
passage of other attendees, or otherwise disturb the business of the meeting.
TIME ESTIMATES
Listed times are estimates only and are subject to change at any time, including while the
meeting is in progress. The Council reserves the right to use more or less time on any item, to
change the order of items and/or to continue items to another meeting. Particular items may be
heard before or after the time estimated on the agenda. This may occur in order to best manage
the time at a meeting or to adapt to the participation of the public.
CALL TO ORDER
CLOSED SESSION (5:30 ‐ 8:00 PM)
1.Tentative: PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Authority: Cal. Gov. Code section 54957(b);
Title: City Attorney, City Clerk
AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (8:00 ‐ 8:30 PM)
Members of the public may speak in‐person ONLY to any item NOT on the agenda. 1‐3 minutes depending on # of
speakers.Public Comment is limited to 30 minutes. Additional public comments, if any, will be heard at the end of the agenda.
COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (8:30 ‐ 8:35 PM)
Members of the public may not speak to the item(s).
CONSENT CALENDAR (8:35 ‐ 8:40 PM)
Items will be voted in one motion unless removed from the calendar by three Council Members.
2.Approval of Minutes from September 9, 2024 Meeting
3.Adopt an Ordinance Amending the Municipal Fee Schedule to Modify the Calculation for
Park, Community Center and Library Development Impact Fees From per Unit to per
Square Feet for Residential Development. CEQA Status: Exempt Pursuant to 15061(b)(3).
4.Approval of Four (4) Professional Services Contracts for Reliability and Resiliency On‐Call
Services for a Period of Up to 5 Years to Support the Implementation of Palo Alto’s
Reliability and Resiliency Strategic Plan as Needed: 1) Contract Number C25189412A
with Buro Happold in an Amount Not to Exceed $450,000; and 2) C25189412B with
EcoMotion, C25189412C with Energeia, and C25189412D with Energy and Environmental
Economics, Inc. (E3), in an Amount Not to Exceed $250,000 (Each); CEQA Status – Not a
Project.
5.Approve a Revised Project Boundary for the Ongoing Downtown Housing Plan Project.
CEQA Status: Exempt per 15061(b)(3)
6.Approval of Contract Amendment Number 3 to Seven Contracts in the amount of
$750,000 for On‐Call Services to Provide Expertise for Long‐Range Planning Projects,
Application Processing, Environmental Review, and Other Planning Analysis in the
Planning and Development Services Department. CEQA Status: Not a Project.
7.Approval of Two Audits as Recommended by the Policy & Services Committee: Public
Safety Construction Audit and Parking Permit Technology Contracts Audit
8.Adoption of an Ordinance Updating Palo Alto Municipal Code Chapter 4.64 (Permits for
Retailers of Tobacco Products) to Conform with County Amendments and Approval of the
Updated Agreement Between the County of Santa Clara and City of Palo Alto for a
Tobacco Retail Permit Program; CEQA Status – Not a Project
9.REINTRODUCED FIRST READING: Adopt an Ordinance Adding Chapter 18.29 and
Amending Chapters 18.14, 18.24, 18.70, and 16.65 in the Palo Alto Municipal Code as
well as Amendments to the Zoning District Map, and Rezoning of Parcels Within the
NVCAP area (PREVIOUSLY INTRODUCED: August 5, 2024 PASSED 6‐1, Kou no)
CITY MANAGER COMMENTS (8:40 ‐ 8:55 PM)
BREAK (15 MINUTES)
ACTION ITEMS (9:10 ‐ 9:55 PM)
Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished
Business and Council Matters.
10.Review the Procurement Process Review Audit and Supplemental Information Regarding
Competitive Solicitation Outcomes and Approve the Audit
ADJOURNMENT
INFORMATION REPORTS
Information reports are provided for informational purposes only to the Council and the public but are not listed for action
during this meeting’s agenda.
11.Accessory Dwelling Unit (ADU) ‐ 2024 Quarter 2 (April ‐ June 2024) Report
12.City of Palo Alto's Energy Risk Management Report for the first half of Fiscal Year 2024
(July 1, 2023‐December 31, 2023).
OTHER INFORMATION
Standing Committee Meetings this week
Public Comment Letters
Schedule of Meetings
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email,
teleconference, or by phone.
1. Written public comments may be submitted by email to city.council@cityofpaloalto.org.
2. For in person public comments please complete a speaker request card located on the
table at the entrance to the Council Chambers and deliver it to the Clerk prior to
discussion of the item.
3. Spoken public comments for agendized items using a computer or smart phone will
be accepted through the teleconference meeting. To address the Council, click on the link
below to access a Zoom‐based meeting. Please read the following instructions carefully.
You may download the Zoom client or connect to the meeting in‐ browser. If using
your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 ,
Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in
older browsers including Internet Explorer. Or download the Zoom application onto
your smart phone from the Apple App Store or Google Play Store and enter in the
Meeting ID below.
You may be asked to enter an email address and name. We request that you
identify yourself by name as this will be visible online and will be used to notify you
that it is your turn to speak.
When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will
activate and unmute speakers in turn. Speakers will be notified shortly before they
are called to speak.
When called, please limit your remarks to the time limit allotted. A timer will be
shown on the computer to help keep track of your comments.
4. Spoken public comments for agendized items using a phone use the telephone number
listed below. When you wish to speak on an agenda item hit *9 on your phone so we
know that you wish to speak. You will be asked to provide your first and last name before
addressing the Council. You will be advised how long you have to speak. When called
please limit your remarks to the agenda item and time limit allotted.
CLICK HERE TO JOIN Meeting ID: 362‐027‐238 Phone: 1‐669‐900‐6833
Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public
programs, services and meetings in a manner that is readily accessible to all. Persons with
disabilities who require materials in an appropriate alternative format or who require auxiliary
aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at
(650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or
accommodations must be submitted at least 24 hours in advance of the meeting, program, or
service.
California Government Code §84308, commonly referred to as the "Levine Act," prohibits an
elected official of a local government agency from participating in a proceeding involving a
license, permit, or other entitlement for use if the official received a campaign contribution
exceeding $250 from a party or participant, including their agents, to the proceeding within the
last 12 months. A “license, permit, or other entitlement for use” includes most land use and
planning approvals and the approval of contracts that are not subject to lowest responsible bid
procedures. A “party” is a person who files an application for, or is the subject of, a proceeding
involving a license, permit, or other entitlement for use. A “participant” is a person who actively
supports or opposes a particular decision in a proceeding involving a license, permit, or other
entitlement for use, and has a financial interest in the decision. The Levine Act incorporates the
definition of “financial interest” in the Political Reform Act, which encompasses interests in
business entities, real property, sources of income, sources of gifts, and personal finances that
may be affected by the Council’s actions. If you qualify as a “party” or “participant” to a
proceeding, and you have made a campaign contribution to a Council Member exceeding $250
made within the last 12 months, you must disclose the campaign contribution before making
your comments.
1 September 23, 2024
Materials submitted after distribution of the agenda packet are available for public inspection
at www.CityofPaloAlto.org/agendas.
CITY COUNCILSpecial MeetingMonday, September 23, 2024Council Chambers & Hybrid5:30 PMPalo Alto City Council meetings will be held as “hybrid” meetings with the option to attend byteleconference or in person. Information on how the public may observe and participate in themeeting is located at the end of the agenda. The meeting will be broadcast on Cable TVChannel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto, and streamed toMidpen Media Center https://midpenmedia.org.VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238) Meeting ID: 362 027 238 Phone:1(669)900‐6833PUBLIC COMMENTSGeneral Public Comment for items not on the agenda will be accepted in person for up to threeminutes or an amount of time determined by the Chair. General public comment will be heardfor 30 minutes. Additional public comments, if any, will be heard at the end of the agenda.Public comments for agendized items will be accepted both in person and via Zoom for up tothree minutes or an amount of time determined by the Chair. Request to speak will be takenuntil 5 minutes after the staff’s presentation or as determined by the Chair. Written publiccomments can be submitted in advance to city.council@CityofPaloAlto.org and will be providedto the Council and available for inspection on the City’s website. Please clearly indicate whichagenda item you are referencing in your subject line. PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received,the Clerk will have them shared at public comment for the specified item. To uphold strongcybersecurity management practices, USB’s or other physical electronic storage devices are notaccepted.Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that: (1) sticks,posts, poles or similar/other type of handle objects are strictly prohibited; (2) the items do notcreate a facility, fire, or safety hazard; and (3) persons with such items remain seated whendisplaying them and must not raise the items above shoulder level, obstruct the view orpassage of other attendees, or otherwise disturb the business of the meeting.TIME ESTIMATES
Listed times are estimates only and are subject to change at any time, including while the
meeting is in progress. The Council reserves the right to use more or less time on any item, to
change the order of items and/or to continue items to another meeting. Particular items may be
heard before or after the time estimated on the agenda. This may occur in order to best manage
the time at a meeting or to adapt to the participation of the public.
CALL TO ORDER
CLOSED SESSION (5:30 ‐ 8:00 PM)
1.Tentative: PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Authority: Cal. Gov. Code section 54957(b);
Title: City Attorney, City Clerk
AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (8:00 ‐ 8:30 PM)
Members of the public may speak in‐person ONLY to any item NOT on the agenda. 1‐3 minutes depending on # of
speakers.Public Comment is limited to 30 minutes. Additional public comments, if any, will be heard at the end of the agenda.
COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (8:30 ‐ 8:35 PM)
Members of the public may not speak to the item(s).
CONSENT CALENDAR (8:35 ‐ 8:40 PM)
Items will be voted in one motion unless removed from the calendar by three Council Members.
2.Approval of Minutes from September 9, 2024 Meeting
3.Adopt an Ordinance Amending the Municipal Fee Schedule to Modify the Calculation for
Park, Community Center and Library Development Impact Fees From per Unit to per
Square Feet for Residential Development. CEQA Status: Exempt Pursuant to 15061(b)(3).
4.Approval of Four (4) Professional Services Contracts for Reliability and Resiliency On‐Call
Services for a Period of Up to 5 Years to Support the Implementation of Palo Alto’s
Reliability and Resiliency Strategic Plan as Needed: 1) Contract Number C25189412A
with Buro Happold in an Amount Not to Exceed $450,000; and 2) C25189412B with
EcoMotion, C25189412C with Energeia, and C25189412D with Energy and Environmental
Economics, Inc. (E3), in an Amount Not to Exceed $250,000 (Each); CEQA Status – Not a
Project.
5.Approve a Revised Project Boundary for the Ongoing Downtown Housing Plan Project.
CEQA Status: Exempt per 15061(b)(3)
6.Approval of Contract Amendment Number 3 to Seven Contracts in the amount of
$750,000 for On‐Call Services to Provide Expertise for Long‐Range Planning Projects,
Application Processing, Environmental Review, and Other Planning Analysis in the
Planning and Development Services Department. CEQA Status: Not a Project.
7.Approval of Two Audits as Recommended by the Policy & Services Committee: Public
Safety Construction Audit and Parking Permit Technology Contracts Audit
8.Adoption of an Ordinance Updating Palo Alto Municipal Code Chapter 4.64 (Permits for
Retailers of Tobacco Products) to Conform with County Amendments and Approval of the
Updated Agreement Between the County of Santa Clara and City of Palo Alto for a
Tobacco Retail Permit Program; CEQA Status – Not a Project
9.REINTRODUCED FIRST READING: Adopt an Ordinance Adding Chapter 18.29 and
Amending Chapters 18.14, 18.24, 18.70, and 16.65 in the Palo Alto Municipal Code as
well as Amendments to the Zoning District Map, and Rezoning of Parcels Within the
NVCAP area (PREVIOUSLY INTRODUCED: August 5, 2024 PASSED 6‐1, Kou no)
CITY MANAGER COMMENTS (8:40 ‐ 8:55 PM)
BREAK (15 MINUTES)
ACTION ITEMS (9:10 ‐ 9:55 PM)
Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished
Business and Council Matters.
10.Review the Procurement Process Review Audit and Supplemental Information Regarding
Competitive Solicitation Outcomes and Approve the Audit
ADJOURNMENT
INFORMATION REPORTS
Information reports are provided for informational purposes only to the Council and the public but are not listed for action
during this meeting’s agenda.
11.Accessory Dwelling Unit (ADU) ‐ 2024 Quarter 2 (April ‐ June 2024) Report
12.City of Palo Alto's Energy Risk Management Report for the first half of Fiscal Year 2024
(July 1, 2023‐December 31, 2023).
OTHER INFORMATION
Standing Committee Meetings this week
Public Comment Letters
Schedule of Meetings
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email,
teleconference, or by phone.
1. Written public comments may be submitted by email to city.council@cityofpaloalto.org.
2. For in person public comments please complete a speaker request card located on the
table at the entrance to the Council Chambers and deliver it to the Clerk prior to
discussion of the item.
3. Spoken public comments for agendized items using a computer or smart phone will
be accepted through the teleconference meeting. To address the Council, click on the link
below to access a Zoom‐based meeting. Please read the following instructions carefully.
You may download the Zoom client or connect to the meeting in‐ browser. If using
your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 ,
Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in
older browsers including Internet Explorer. Or download the Zoom application onto
your smart phone from the Apple App Store or Google Play Store and enter in the
Meeting ID below.
You may be asked to enter an email address and name. We request that you
identify yourself by name as this will be visible online and will be used to notify you
that it is your turn to speak.
When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will
activate and unmute speakers in turn. Speakers will be notified shortly before they
are called to speak.
When called, please limit your remarks to the time limit allotted. A timer will be
shown on the computer to help keep track of your comments.
4. Spoken public comments for agendized items using a phone use the telephone number
listed below. When you wish to speak on an agenda item hit *9 on your phone so we
know that you wish to speak. You will be asked to provide your first and last name before
addressing the Council. You will be advised how long you have to speak. When called
please limit your remarks to the agenda item and time limit allotted.
CLICK HERE TO JOIN Meeting ID: 362‐027‐238 Phone: 1‐669‐900‐6833
Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public
programs, services and meetings in a manner that is readily accessible to all. Persons with
disabilities who require materials in an appropriate alternative format or who require auxiliary
aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at
(650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or
accommodations must be submitted at least 24 hours in advance of the meeting, program, or
service.
California Government Code §84308, commonly referred to as the "Levine Act," prohibits an
elected official of a local government agency from participating in a proceeding involving a
license, permit, or other entitlement for use if the official received a campaign contribution
exceeding $250 from a party or participant, including their agents, to the proceeding within the
last 12 months. A “license, permit, or other entitlement for use” includes most land use and
planning approvals and the approval of contracts that are not subject to lowest responsible bid
procedures. A “party” is a person who files an application for, or is the subject of, a proceeding
involving a license, permit, or other entitlement for use. A “participant” is a person who actively
supports or opposes a particular decision in a proceeding involving a license, permit, or other
entitlement for use, and has a financial interest in the decision. The Levine Act incorporates the
definition of “financial interest” in the Political Reform Act, which encompasses interests in
business entities, real property, sources of income, sources of gifts, and personal finances that
may be affected by the Council’s actions. If you qualify as a “party” or “participant” to a
proceeding, and you have made a campaign contribution to a Council Member exceeding $250
made within the last 12 months, you must disclose the campaign contribution before making
your comments.
2 September 23, 2024
Materials submitted after distribution of the agenda packet are available for public inspection
at www.CityofPaloAlto.org/agendas.
CITY COUNCILSpecial MeetingMonday, September 23, 2024Council Chambers & Hybrid5:30 PMPalo Alto City Council meetings will be held as “hybrid” meetings with the option to attend byteleconference or in person. Information on how the public may observe and participate in themeeting is located at the end of the agenda. The meeting will be broadcast on Cable TVChannel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto, and streamed toMidpen Media Center https://midpenmedia.org.VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238) Meeting ID: 362 027 238 Phone:1(669)900‐6833PUBLIC COMMENTSGeneral Public Comment for items not on the agenda will be accepted in person for up to threeminutes or an amount of time determined by the Chair. General public comment will be heardfor 30 minutes. Additional public comments, if any, will be heard at the end of the agenda.Public comments for agendized items will be accepted both in person and via Zoom for up tothree minutes or an amount of time determined by the Chair. Request to speak will be takenuntil 5 minutes after the staff’s presentation or as determined by the Chair. Written publiccomments can be submitted in advance to city.council@CityofPaloAlto.org and will be providedto the Council and available for inspection on the City’s website. Please clearly indicate whichagenda item you are referencing in your subject line. PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received,the Clerk will have them shared at public comment for the specified item. To uphold strongcybersecurity management practices, USB’s or other physical electronic storage devices are notaccepted.Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that: (1) sticks,posts, poles or similar/other type of handle objects are strictly prohibited; (2) the items do notcreate a facility, fire, or safety hazard; and (3) persons with such items remain seated whendisplaying them and must not raise the items above shoulder level, obstruct the view orpassage of other attendees, or otherwise disturb the business of the meeting.TIME ESTIMATESListed times are estimates only and are subject to change at any time, including while themeeting is in progress. The Council reserves the right to use more or less time on any item, tochange the order of items and/or to continue items to another meeting. Particular items may beheard before or after the time estimated on the agenda. This may occur in order to best managethe time at a meeting or to adapt to the participation of the public.CALL TO ORDERCLOSED SESSION (5:30 ‐ 8:00 PM)1.Tentative: PUBLIC EMPLOYEE PERFORMANCE EVALUATION Authority: Cal. Gov. Code section 54957(b); Title: City Attorney, City ClerkAGENDA CHANGES, ADDITIONS AND DELETIONSPUBLIC COMMENT (8:00 ‐ 8:30 PM)Members of the public may speak in‐person ONLY to any item NOT on the agenda. 1‐3 minutes depending on # ofspeakers.Public Comment is limited to 30 minutes. Additional public comments, if any, will be heard at the end of the agenda.COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (8:30 ‐ 8:35 PM)Members of the public may not speak to the item(s).CONSENT CALENDAR (8:35 ‐ 8:40 PM)Items will be voted in one motion unless removed from the calendar by three Council Members.2.Approval of Minutes from September 9, 2024 Meeting3.Adopt an Ordinance Amending the Municipal Fee Schedule to Modify the Calculation forPark, Community Center and Library Development Impact Fees From per Unit to perSquare Feet for Residential Development. CEQA Status: Exempt Pursuant to 15061(b)(3).4.Approval of Four (4) Professional Services Contracts for Reliability and Resiliency On‐CallServices for a Period of Up to 5 Years to Support the Implementation of Palo Alto’sReliability and Resiliency Strategic Plan as Needed: 1) Contract Number C25189412Awith Buro Happold in an Amount Not to Exceed $450,000; and 2) C25189412B withEcoMotion, C25189412C with Energeia, and C25189412D with Energy and EnvironmentalEconomics, Inc. (E3), in an Amount Not to Exceed $250,000 (Each); CEQA Status – Not aProject.5.Approve a Revised Project Boundary for the Ongoing Downtown Housing Plan Project.CEQA Status: Exempt per 15061(b)(3)6.Approval of Contract Amendment Number 3 to Seven Contracts in the amount of
$750,000 for On‐Call Services to Provide Expertise for Long‐Range Planning Projects,
Application Processing, Environmental Review, and Other Planning Analysis in the
Planning and Development Services Department. CEQA Status: Not a Project.
7.Approval of Two Audits as Recommended by the Policy & Services Committee: Public
Safety Construction Audit and Parking Permit Technology Contracts Audit
8.Adoption of an Ordinance Updating Palo Alto Municipal Code Chapter 4.64 (Permits for
Retailers of Tobacco Products) to Conform with County Amendments and Approval of the
Updated Agreement Between the County of Santa Clara and City of Palo Alto for a
Tobacco Retail Permit Program; CEQA Status – Not a Project
9.REINTRODUCED FIRST READING: Adopt an Ordinance Adding Chapter 18.29 and
Amending Chapters 18.14, 18.24, 18.70, and 16.65 in the Palo Alto Municipal Code as
well as Amendments to the Zoning District Map, and Rezoning of Parcels Within the
NVCAP area (PREVIOUSLY INTRODUCED: August 5, 2024 PASSED 6‐1, Kou no)
CITY MANAGER COMMENTS (8:40 ‐ 8:55 PM)
BREAK (15 MINUTES)
ACTION ITEMS (9:10 ‐ 9:55 PM)
Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished
Business and Council Matters.
10.Review the Procurement Process Review Audit and Supplemental Information Regarding
Competitive Solicitation Outcomes and Approve the Audit
ADJOURNMENT
INFORMATION REPORTS
Information reports are provided for informational purposes only to the Council and the public but are not listed for action
during this meeting’s agenda.
11.Accessory Dwelling Unit (ADU) ‐ 2024 Quarter 2 (April ‐ June 2024) Report
12.City of Palo Alto's Energy Risk Management Report for the first half of Fiscal Year 2024
(July 1, 2023‐December 31, 2023).
OTHER INFORMATION
Standing Committee Meetings this week
Public Comment Letters
Schedule of Meetings
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email,
teleconference, or by phone.
1. Written public comments may be submitted by email to city.council@cityofpaloalto.org.
2. For in person public comments please complete a speaker request card located on the
table at the entrance to the Council Chambers and deliver it to the Clerk prior to
discussion of the item.
3. Spoken public comments for agendized items using a computer or smart phone will
be accepted through the teleconference meeting. To address the Council, click on the link
below to access a Zoom‐based meeting. Please read the following instructions carefully.
You may download the Zoom client or connect to the meeting in‐ browser. If using
your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 ,
Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in
older browsers including Internet Explorer. Or download the Zoom application onto
your smart phone from the Apple App Store or Google Play Store and enter in the
Meeting ID below.
You may be asked to enter an email address and name. We request that you
identify yourself by name as this will be visible online and will be used to notify you
that it is your turn to speak.
When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will
activate and unmute speakers in turn. Speakers will be notified shortly before they
are called to speak.
When called, please limit your remarks to the time limit allotted. A timer will be
shown on the computer to help keep track of your comments.
4. Spoken public comments for agendized items using a phone use the telephone number
listed below. When you wish to speak on an agenda item hit *9 on your phone so we
know that you wish to speak. You will be asked to provide your first and last name before
addressing the Council. You will be advised how long you have to speak. When called
please limit your remarks to the agenda item and time limit allotted.
CLICK HERE TO JOIN Meeting ID: 362‐027‐238 Phone: 1‐669‐900‐6833
Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public
programs, services and meetings in a manner that is readily accessible to all. Persons with
disabilities who require materials in an appropriate alternative format or who require auxiliary
aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at
(650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or
accommodations must be submitted at least 24 hours in advance of the meeting, program, or
service.
California Government Code §84308, commonly referred to as the "Levine Act," prohibits an
elected official of a local government agency from participating in a proceeding involving a
license, permit, or other entitlement for use if the official received a campaign contribution
exceeding $250 from a party or participant, including their agents, to the proceeding within the
last 12 months. A “license, permit, or other entitlement for use” includes most land use and
planning approvals and the approval of contracts that are not subject to lowest responsible bid
procedures. A “party” is a person who files an application for, or is the subject of, a proceeding
involving a license, permit, or other entitlement for use. A “participant” is a person who actively
supports or opposes a particular decision in a proceeding involving a license, permit, or other
entitlement for use, and has a financial interest in the decision. The Levine Act incorporates the
definition of “financial interest” in the Political Reform Act, which encompasses interests in
business entities, real property, sources of income, sources of gifts, and personal finances that
may be affected by the Council’s actions. If you qualify as a “party” or “participant” to a
proceeding, and you have made a campaign contribution to a Council Member exceeding $250
made within the last 12 months, you must disclose the campaign contribution before making
your comments.
3 September 23, 2024
Materials submitted after distribution of the agenda packet are available for public inspection
at www.CityofPaloAlto.org/agendas.
CITY COUNCILSpecial MeetingMonday, September 23, 2024Council Chambers & Hybrid5:30 PMPalo Alto City Council meetings will be held as “hybrid” meetings with the option to attend byteleconference or in person. Information on how the public may observe and participate in themeeting is located at the end of the agenda. The meeting will be broadcast on Cable TVChannel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto, and streamed toMidpen Media Center https://midpenmedia.org.VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238) Meeting ID: 362 027 238 Phone:1(669)900‐6833PUBLIC COMMENTSGeneral Public Comment for items not on the agenda will be accepted in person for up to threeminutes or an amount of time determined by the Chair. General public comment will be heardfor 30 minutes. Additional public comments, if any, will be heard at the end of the agenda.Public comments for agendized items will be accepted both in person and via Zoom for up tothree minutes or an amount of time determined by the Chair. Request to speak will be takenuntil 5 minutes after the staff’s presentation or as determined by the Chair. Written publiccomments can be submitted in advance to city.council@CityofPaloAlto.org and will be providedto the Council and available for inspection on the City’s website. Please clearly indicate whichagenda item you are referencing in your subject line. PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received,the Clerk will have them shared at public comment for the specified item. To uphold strongcybersecurity management practices, USB’s or other physical electronic storage devices are notaccepted.Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that: (1) sticks,posts, poles or similar/other type of handle objects are strictly prohibited; (2) the items do notcreate a facility, fire, or safety hazard; and (3) persons with such items remain seated whendisplaying them and must not raise the items above shoulder level, obstruct the view orpassage of other attendees, or otherwise disturb the business of the meeting.TIME ESTIMATESListed times are estimates only and are subject to change at any time, including while themeeting is in progress. The Council reserves the right to use more or less time on any item, tochange the order of items and/or to continue items to another meeting. Particular items may beheard before or after the time estimated on the agenda. This may occur in order to best managethe time at a meeting or to adapt to the participation of the public.CALL TO ORDERCLOSED SESSION (5:30 ‐ 8:00 PM)1.Tentative: PUBLIC EMPLOYEE PERFORMANCE EVALUATION Authority: Cal. Gov. Code section 54957(b); Title: City Attorney, City ClerkAGENDA CHANGES, ADDITIONS AND DELETIONSPUBLIC COMMENT (8:00 ‐ 8:30 PM)Members of the public may speak in‐person ONLY to any item NOT on the agenda. 1‐3 minutes depending on # ofspeakers.Public Comment is limited to 30 minutes. Additional public comments, if any, will be heard at the end of the agenda.COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (8:30 ‐ 8:35 PM)Members of the public may not speak to the item(s).CONSENT CALENDAR (8:35 ‐ 8:40 PM)Items will be voted in one motion unless removed from the calendar by three Council Members.2.Approval of Minutes from September 9, 2024 Meeting3.Adopt an Ordinance Amending the Municipal Fee Schedule to Modify the Calculation forPark, Community Center and Library Development Impact Fees From per Unit to perSquare Feet for Residential Development. CEQA Status: Exempt Pursuant to 15061(b)(3).4.Approval of Four (4) Professional Services Contracts for Reliability and Resiliency On‐CallServices for a Period of Up to 5 Years to Support the Implementation of Palo Alto’sReliability and Resiliency Strategic Plan as Needed: 1) Contract Number C25189412Awith Buro Happold in an Amount Not to Exceed $450,000; and 2) C25189412B withEcoMotion, C25189412C with Energeia, and C25189412D with Energy and EnvironmentalEconomics, Inc. (E3), in an Amount Not to Exceed $250,000 (Each); CEQA Status – Not aProject.5.Approve a Revised Project Boundary for the Ongoing Downtown Housing Plan Project.CEQA Status: Exempt per 15061(b)(3)6.Approval of Contract Amendment Number 3 to Seven Contracts in the amount of$750,000 for On‐Call Services to Provide Expertise for Long‐Range Planning Projects,Application Processing, Environmental Review, and Other Planning Analysis in thePlanning and Development Services Department. CEQA Status: Not a Project.7.Approval of Two Audits as Recommended by the Policy & Services Committee: PublicSafety Construction Audit and Parking Permit Technology Contracts Audit8.Adoption of an Ordinance Updating Palo Alto Municipal Code Chapter 4.64 (Permits forRetailers of Tobacco Products) to Conform with County Amendments and Approval of theUpdated Agreement Between the County of Santa Clara and City of Palo Alto for aTobacco Retail Permit Program; CEQA Status – Not a Project9.REINTRODUCED FIRST READING: Adopt an Ordinance Adding Chapter 18.29 andAmending Chapters 18.14, 18.24, 18.70, and 16.65 in the Palo Alto Municipal Code aswell as Amendments to the Zoning District Map, and Rezoning of Parcels Within theNVCAP area (PREVIOUSLY INTRODUCED: August 5, 2024 PASSED 6‐1, Kou no)CITY MANAGER COMMENTS (8:40 ‐ 8:55 PM)BREAK (15 MINUTES)ACTION ITEMS (9:10 ‐ 9:55 PM)Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, UnfinishedBusiness and Council Matters.10.Review the Procurement Process Review Audit and Supplemental Information RegardingCompetitive Solicitation Outcomes and Approve the AuditADJOURNMENTINFORMATION REPORTSInformation reports are provided for informational purposes only to the Council and the public but are not listed for actionduring this meeting’s agenda.11.Accessory Dwelling Unit (ADU) ‐ 2024 Quarter 2 (April ‐ June 2024) Report12.City of Palo Alto's Energy Risk Management Report for the first half of Fiscal Year 2024(July 1, 2023‐December 31, 2023).OTHER INFORMATION
Standing Committee Meetings this week
Public Comment Letters
Schedule of Meetings
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email,
teleconference, or by phone.
1. Written public comments may be submitted by email to city.council@cityofpaloalto.org.
2. For in person public comments please complete a speaker request card located on the
table at the entrance to the Council Chambers and deliver it to the Clerk prior to
discussion of the item.
3. Spoken public comments for agendized items using a computer or smart phone will
be accepted through the teleconference meeting. To address the Council, click on the link
below to access a Zoom‐based meeting. Please read the following instructions carefully.
You may download the Zoom client or connect to the meeting in‐ browser. If using
your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 ,
Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in
older browsers including Internet Explorer. Or download the Zoom application onto
your smart phone from the Apple App Store or Google Play Store and enter in the
Meeting ID below.
You may be asked to enter an email address and name. We request that you
identify yourself by name as this will be visible online and will be used to notify you
that it is your turn to speak.
When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will
activate and unmute speakers in turn. Speakers will be notified shortly before they
are called to speak.
When called, please limit your remarks to the time limit allotted. A timer will be
shown on the computer to help keep track of your comments.
4. Spoken public comments for agendized items using a phone use the telephone number
listed below. When you wish to speak on an agenda item hit *9 on your phone so we
know that you wish to speak. You will be asked to provide your first and last name before
addressing the Council. You will be advised how long you have to speak. When called
please limit your remarks to the agenda item and time limit allotted.
CLICK HERE TO JOIN Meeting ID: 362‐027‐238 Phone: 1‐669‐900‐6833
Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public
programs, services and meetings in a manner that is readily accessible to all. Persons with
disabilities who require materials in an appropriate alternative format or who require auxiliary
aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at
(650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or
accommodations must be submitted at least 24 hours in advance of the meeting, program, or
service.
California Government Code §84308, commonly referred to as the "Levine Act," prohibits an
elected official of a local government agency from participating in a proceeding involving a
license, permit, or other entitlement for use if the official received a campaign contribution
exceeding $250 from a party or participant, including their agents, to the proceeding within the
last 12 months. A “license, permit, or other entitlement for use” includes most land use and
planning approvals and the approval of contracts that are not subject to lowest responsible bid
procedures. A “party” is a person who files an application for, or is the subject of, a proceeding
involving a license, permit, or other entitlement for use. A “participant” is a person who actively
supports or opposes a particular decision in a proceeding involving a license, permit, or other
entitlement for use, and has a financial interest in the decision. The Levine Act incorporates the
definition of “financial interest” in the Political Reform Act, which encompasses interests in
business entities, real property, sources of income, sources of gifts, and personal finances that
may be affected by the Council’s actions. If you qualify as a “party” or “participant” to a
proceeding, and you have made a campaign contribution to a Council Member exceeding $250
made within the last 12 months, you must disclose the campaign contribution before making
your comments.
4 September 23, 2024
Materials submitted after distribution of the agenda packet are available for public inspection
at www.CityofPaloAlto.org/agendas.
CITY COUNCILSpecial MeetingMonday, September 23, 2024Council Chambers & Hybrid5:30 PMPalo Alto City Council meetings will be held as “hybrid” meetings with the option to attend byteleconference or in person. Information on how the public may observe and participate in themeeting is located at the end of the agenda. The meeting will be broadcast on Cable TVChannel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto, and streamed toMidpen Media Center https://midpenmedia.org.VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238) Meeting ID: 362 027 238 Phone:1(669)900‐6833PUBLIC COMMENTSGeneral Public Comment for items not on the agenda will be accepted in person for up to threeminutes or an amount of time determined by the Chair. General public comment will be heardfor 30 minutes. Additional public comments, if any, will be heard at the end of the agenda.Public comments for agendized items will be accepted both in person and via Zoom for up tothree minutes or an amount of time determined by the Chair. Request to speak will be takenuntil 5 minutes after the staff’s presentation or as determined by the Chair. Written publiccomments can be submitted in advance to city.council@CityofPaloAlto.org and will be providedto the Council and available for inspection on the City’s website. Please clearly indicate whichagenda item you are referencing in your subject line. PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received,the Clerk will have them shared at public comment for the specified item. To uphold strongcybersecurity management practices, USB’s or other physical electronic storage devices are notaccepted.Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that: (1) sticks,posts, poles or similar/other type of handle objects are strictly prohibited; (2) the items do notcreate a facility, fire, or safety hazard; and (3) persons with such items remain seated whendisplaying them and must not raise the items above shoulder level, obstruct the view orpassage of other attendees, or otherwise disturb the business of the meeting.TIME ESTIMATESListed times are estimates only and are subject to change at any time, including while themeeting is in progress. The Council reserves the right to use more or less time on any item, tochange the order of items and/or to continue items to another meeting. Particular items may beheard before or after the time estimated on the agenda. This may occur in order to best managethe time at a meeting or to adapt to the participation of the public.CALL TO ORDERCLOSED SESSION (5:30 ‐ 8:00 PM)1.Tentative: PUBLIC EMPLOYEE PERFORMANCE EVALUATION Authority: Cal. Gov. Code section 54957(b); Title: City Attorney, City ClerkAGENDA CHANGES, ADDITIONS AND DELETIONSPUBLIC COMMENT (8:00 ‐ 8:30 PM)Members of the public may speak in‐person ONLY to any item NOT on the agenda. 1‐3 minutes depending on # ofspeakers.Public Comment is limited to 30 minutes. Additional public comments, if any, will be heard at the end of the agenda.COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (8:30 ‐ 8:35 PM)Members of the public may not speak to the item(s).CONSENT CALENDAR (8:35 ‐ 8:40 PM)Items will be voted in one motion unless removed from the calendar by three Council Members.2.Approval of Minutes from September 9, 2024 Meeting3.Adopt an Ordinance Amending the Municipal Fee Schedule to Modify the Calculation forPark, Community Center and Library Development Impact Fees From per Unit to perSquare Feet for Residential Development. CEQA Status: Exempt Pursuant to 15061(b)(3).4.Approval of Four (4) Professional Services Contracts for Reliability and Resiliency On‐CallServices for a Period of Up to 5 Years to Support the Implementation of Palo Alto’sReliability and Resiliency Strategic Plan as Needed: 1) Contract Number C25189412Awith Buro Happold in an Amount Not to Exceed $450,000; and 2) C25189412B withEcoMotion, C25189412C with Energeia, and C25189412D with Energy and EnvironmentalEconomics, Inc. (E3), in an Amount Not to Exceed $250,000 (Each); CEQA Status – Not aProject.5.Approve a Revised Project Boundary for the Ongoing Downtown Housing Plan Project.CEQA Status: Exempt per 15061(b)(3)6.Approval of Contract Amendment Number 3 to Seven Contracts in the amount of$750,000 for On‐Call Services to Provide Expertise for Long‐Range Planning Projects,Application Processing, Environmental Review, and Other Planning Analysis in thePlanning and Development Services Department. CEQA Status: Not a Project.7.Approval of Two Audits as Recommended by the Policy & Services Committee: PublicSafety Construction Audit and Parking Permit Technology Contracts Audit8.Adoption of an Ordinance Updating Palo Alto Municipal Code Chapter 4.64 (Permits forRetailers of Tobacco Products) to Conform with County Amendments and Approval of theUpdated Agreement Between the County of Santa Clara and City of Palo Alto for aTobacco Retail Permit Program; CEQA Status – Not a Project9.REINTRODUCED FIRST READING: Adopt an Ordinance Adding Chapter 18.29 andAmending Chapters 18.14, 18.24, 18.70, and 16.65 in the Palo Alto Municipal Code aswell as Amendments to the Zoning District Map, and Rezoning of Parcels Within theNVCAP area (PREVIOUSLY INTRODUCED: August 5, 2024 PASSED 6‐1, Kou no)CITY MANAGER COMMENTS (8:40 ‐ 8:55 PM)BREAK (15 MINUTES)ACTION ITEMS (9:10 ‐ 9:55 PM)Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, UnfinishedBusiness and Council Matters.10.Review the Procurement Process Review Audit and Supplemental Information RegardingCompetitive Solicitation Outcomes and Approve the AuditADJOURNMENTINFORMATION REPORTSInformation reports are provided for informational purposes only to the Council and the public but are not listed for actionduring this meeting’s agenda.11.Accessory Dwelling Unit (ADU) ‐ 2024 Quarter 2 (April ‐ June 2024) Report12.City of Palo Alto's Energy Risk Management Report for the first half of Fiscal Year 2024(July 1, 2023‐December 31, 2023).OTHER INFORMATIONStanding Committee Meetings this weekPublic Comment LettersSchedule of MeetingsPUBLIC COMMENT INSTRUCTIONSMembers of the Public may provide public comments to teleconference meetings via email,teleconference, or by phone.1. Written public comments may be submitted by email to city.council@cityofpaloalto.org.2. For in person public comments please complete a speaker request card located on thetable at the entrance to the Council Chambers and deliver it to the Clerk prior todiscussion of the item.3. Spoken public comments for agendized items using a computer or smart phone willbe accepted through the teleconference meeting. To address the Council, click on the linkbelow to access a Zoom‐based meeting. Please read the following instructions carefully.You may download the Zoom client or connect to the meeting in‐ browser. If usingyour browser, make sure you are using a current, up‐to‐date browser: Chrome 30 ,Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled inolder browsers including Internet Explorer. Or download the Zoom application ontoyour smart phone from the Apple App Store or Google Play Store and enter in theMeeting ID below.You may be asked to enter an email address and name. We request that youidentify yourself by name as this will be visible online and will be used to notify youthat it is your turn to speak.When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk willactivate and unmute speakers in turn. Speakers will be notified shortly before theyare called to speak.When called, please limit your remarks to the time limit allotted. A timer will beshown on the computer to help keep track of your comments.4. Spoken public comments for agendized items using a phone use the telephone numberlisted below. When you wish to speak on an agenda item hit *9 on your phone so weknow that you wish to speak. You will be asked to provide your first and last name beforeaddressing the Council. You will be advised how long you have to speak. When calledplease limit your remarks to the agenda item and time limit allotted.CLICK HERE TO JOIN Meeting ID: 362‐027‐238 Phone: 1‐669‐900‐6833Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its publicprograms, services and meetings in a manner that is readily accessible to all. Persons withdisabilities who require materials in an appropriate alternative format or who require auxiliary
aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at
(650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or
accommodations must be submitted at least 24 hours in advance of the meeting, program, or
service.
California Government Code §84308, commonly referred to as the "Levine Act," prohibits an
elected official of a local government agency from participating in a proceeding involving a
license, permit, or other entitlement for use if the official received a campaign contribution
exceeding $250 from a party or participant, including their agents, to the proceeding within the
last 12 months. A “license, permit, or other entitlement for use” includes most land use and
planning approvals and the approval of contracts that are not subject to lowest responsible bid
procedures. A “party” is a person who files an application for, or is the subject of, a proceeding
involving a license, permit, or other entitlement for use. A “participant” is a person who actively
supports or opposes a particular decision in a proceeding involving a license, permit, or other
entitlement for use, and has a financial interest in the decision. The Levine Act incorporates the
definition of “financial interest” in the Political Reform Act, which encompasses interests in
business entities, real property, sources of income, sources of gifts, and personal finances that
may be affected by the Council’s actions. If you qualify as a “party” or “participant” to a
proceeding, and you have made a campaign contribution to a Council Member exceeding $250
made within the last 12 months, you must disclose the campaign contribution before making
your comments.
5 September 23, 2024
Materials submitted after distribution of the agenda packet are available for public inspection
at www.CityofPaloAlto.org/agendas.
City Council
Staff Report
Report Type: CONSENT CALENDAR
Lead Department: City Clerk
Meeting Date: September 23, 2024
Report #:2409-3471
TITLE
Approval of Minutes from September 9, 2024 Meeting
RECOMMENDATION
That the minutes be reviewed and approved.
ATTACHMENTS
Attachment A: September 9, 2024 Draft Action Minutes
APPROVED BY:
Mahealani Ah Yun
Item 2
Item 2 Staff Report
Item 2: Staff Report Pg. 1 Packet Pg. 6 of 302
CITY COUNCIL
DRAFT ACTION MINUTES
Page 1 of 4
Regular Meeting
September 09, 2024
The City Council of the City of Palo Alto met on this date in the Council Chambers and by virtual
teleconference at 5:30 P.M.
Present In Person: Burt, Kou, Lauing, Lythcott-Haims, Stone, Veenker
Tanaka arrived at 5:32 P.M.
Present Remotely:
Absent:
Special Orders of the Day
1. Proclamation Honoring SMART Week - August 26-30, 2024
NO ACTION
Agenda Changes, Additions and Deletions
Public Comment
Council Member Questions, Comments and Announcements
Consent Calendar
Council Member Tanaka registered a no vote on Agenda Item Numbers 5 and 9.
MOTION: Vice Mayor Lauing moved, seconded by Council Member Lythcott-Haims to approve
Agenda Item Numbers 2-13.
MOTION PASSED ITEMS 5, 9: 6-1, Tanaka no
Item 2
Attachment A -
September 9, 2024 Draft
Action Minutes
Item 2: Staff Report Pg. 2 Packet Pg. 7 of 302
DRAFT ACTION MINUTES
Page 2 of 4
City Council Meeting
Draft Action Minutes: 09/09/2024
MOTION PASSED ITEMS 2-4, 6-8, 10-13: 7-0
2. Approval of Minutes from June 3, June 10, August 12, and August 19, 2024 Meetings
3. Adoption of a Resolution Amending Resolution 9486 to Increase the Purchase Amount
of Greenhouse Gas Allowances in the California Cap-and-Trade Auction to Satisfy the
City's Gas Utility Compliance Obligations to an Amount Not-to-Exceed of $6,000,000 per
Year; CEQA Status: Not a Project
4. CONSENT: Approval of a Record of Land Use Action to Upgrade the Property Located at
431-433 Kipling Street From a Category 4 Resource to a Category 2 Resource on the
Local Historic Inventory.
5. Approval of Purchase Order with West Coast Energy Systems LLC (PO 4525000045) for a
Total Not-to-Exceed Amount of $478,041 to Purchase two (2) Portable Power
Generators for Water Pump Stations in the Amount of $458,031; and Authorize the City
Manager or Their Designee to Negotiate and Execute Change Orders in the Amount of
$20,000 for Related Additional but Unforeseen Work. CEQA Status: Exempt Under CEQA
Guidelines Section 15301 (Minor Alteration of Existing Facilities)
6. Approval of Professional Services Contract C25192226 with Magical Bridge Foundation
in an Amount Not-to Exceed $150,000 to Provide Recreational Programming (“Magical
Services”) for a Term of One Year; CEQA Status – Not a project.
7. Approval of Professional Services Contract Number C25191297 with Kittelson &
Associates for a Not-to-Exceed Amount of $499,491 for the Bicycle and Pedestrian
Railroad Crossing Alternatives Analysis in Southern Palo Alto for a Term of Two-Years;
CEQA Status – categorically exempt.
8. Approval of the Updated City Council Procedures and Protocols Handbook Amendments
as Directed by City Council on May 13 and May 20, 2024
9. Approval of Contract Amendment No. 4 to Contract Number C19170648 with Salas
O'Brien Engineers, Inc., for Professional Design Services, to Add Services and Increase
Compensation by $99,200 for a New Not-to-Exceed Amount of $659,597, and to Extend
the Schedule for Performance Through December 31, 2026, for the 12kV Electrical
Distribution Network Rehabilitation Project at the Regional Water Quality Control Plant,
Funded by the Plant Repair, Retrofit, and Equipment Replacement Capital Improvement
Program Project (WQ-19002); CEQA Status – Exempt Under Section 15301
10. Approval of Construction Contract No. C25191636 with Central Pacific Engineering, LLC
in the Amount of $499,530 and Authorization for the City Manager or Their Designee to
Negotiate and Execute Change Orders for Related Additional but Unforeseen Work that
may Develop During the Project Up to a Not-to-Exceed Amount of $49,953 for Site Work
Item 2
Attachment A -
September 9, 2024 Draft
Action Minutes
Item 2: Staff Report Pg. 3 Packet Pg. 8 of 302
DRAFT ACTION MINUTES
Page 3 of 4
City Council Meeting
Draft Action Minutes: 09/09/2024
for the Cubberley Field Restroom (CB-17002) and Cubberley Repairs (CB-17001)
Projects; CEQA status – Exempt Under CEQA Guidelines Section 15303
11. Approval of Purchase Order C25192371 with Carahsoft Technology Corporation, utilizing
an OMNIA Cooperative Purchasing Agreement, to Procure DocuSign eSignature
software for a One-Year Term Not-To-Exceed Amount of $125,965. CEQA: Not a project
12. SECOND READING: Ordinance of the Council of the City of Palo Alto Amending PAMC
Section 22.08.440 to Rename Tower Well Park to Fred Eyerly Tower Well Park (FIRST
READING: August 12, 2024 PASSED 7-0)
13. SECOND READING: Ordinance of the Council of the City of Palo Alto Amending PAMC
Section 2.22.030 to Update Quorum and Other Procedural Requirements Reflecting a
Seven Member Human Relations Commission (FIRST READING: August 19, 2024 PASSED
7-0)
City Manager Comments
Ed Shikada, City Manager
Closed Session
14. CONFERENCE WITH CITY ATTORNEY-EXISTING LITIGATION
In the Matter of the Appeal of the City of Palo Alto (Donatus Okhomina)
Occupational Safety and Health Appeals Board Inspection No. 1445287 (One Case, as
Appellant)
Authority: Government Code Section 54956.9(d)(1)
15. CONFERENCE WITH CITY ATTORNEY-POTENTIAL LITIGATION
Subject: Potential litigation regarding refund of parking in-lieu fees paid by Hamilton
Real, LLC in connection with development of 240-248 Hamilton Avenue, as set forth in
letter dated
May 15, 2024 from David Lanferman, Esq.
Authority: Potential Exposure to Litigation Under Government Code Section
54956.9(d)(2)
One Case, as Defendant
16. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Authority: Government Code Section 54956.8.
Property: 4000 Middlefield Road, Palo Alto (Informally known as the Cubberley Site)
Negotiating Party: Palo Alto Unified School District
Item 2
Attachment A -
September 9, 2024 Draft
Action Minutes
Item 2: Staff Report Pg. 4 Packet Pg. 9 of 302
DRAFT ACTION MINUTES
Page 4 of 4
City Council Meeting
Draft Action Minutes: 09/09/2024
City Negotiators: (Ed Shikada, Kiely Nose, Kristen O'Kane, Lauren Lai)
Subject of Negotiations: Purchase, Exchange, and/or Lease, Price and Terms of Payment
17. CONFERENCE WITH LABOR NEGOTIATORS City Designated Representatives: City
Manager and his Designees
Pursuant to Merit System Rules and Regulations (Ed Shikada, Kiely Nose, Sandra Blanch,
Nick Raisch, Tori
Post, Molly Stump, and Jennifer Fine) Employee Organization: International Association
of
Fire Fighters (IAFF) local 1319, Fire Chiefs Association (FCA), Peace Officers Association
of Palo Alto (POPOA), Police Management Association (PMA); Authority: Government
Code
Section 54957.6 (a)
MOTION: Council Member Burt moved, seconded by Council Member Veenker to go into
Closed Session.
MOTION PASSED: 7-0
Council went into Closed Session at 6:11 P.M.
Council returned from Closed Session at 9:48 P.M.
Mayor Stone announced no reportable action.
Adjournment: The meeting was adjourned at 9:48 P.M.
ATTEST: APPROVED:
____________________ ____________________
City Clerk Mayor
NOTE: Action minutes are prepared in accordance with Palo Alto Municipal Code (PAMC)
2.04.160(a) and (b). Summary minutes (sense) are prepared in accordance with PAMC Section
2.04.160(c). Beginning in January 2018, in accordance with Ordinance No. 5423, the City Council
found action minutes and the video/audio recordings of Council proceedings to be the official
records of both Council and committee proceedings. These recordings are available on the
City’s website.
Item 2
Attachment A -
September 9, 2024 Draft
Action Minutes
Item 2: Staff Report Pg. 5 Packet Pg. 10 of 302
City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Planning and Development Services
Meeting Date: September 23, 2024
Report #:2408-3404
TITLE
Adopt an Ordinance Amending the Municipal Fee Schedule to Modify the Calculation for Park,
Community Center and Library Development Impact Fees From per Unit to per Square Feet for
Residential Development. CEQA Status: Exempt Pursuant to 15061(b)(3).
RECOMMENDATION
Staff recommends that City Council:
a) Review the attached Supplement to the Development Impact Fee Justification Study
(Attachment A)
b) Adopt an ordinance amending the City’s FY2025 Adopted Municipal Fee Schedule to
update the Parks, Community Center, and Library impact fees from per unit to per
square feet for residential development (Attachment B).
EXECUTIVE SUMMARY
Based on prior Council direction, staff recommends that the City Council adopt an ordinance
amending the FY2025 Municipal Fee Schedule to modify the calculation of Park, Community
Center, and Library Development Impact Fees for residential development from a per dwelling
unit basis to a per square foot basis. This change is in response to AB 602, which mandates a
more equitable distribution of impact fees based on development size. This amendment aligns
with the City’s newly certified Housing Element and addresses Program 3.1: Fee Waivers and
Adjustments, aimed at balancing the need for public facility funding with the promotion of
housing affordability. The new fee structure, if adopted, would take effect on November 25,
2024.
BACKGROUND
Under the Mitigation Fee Act (Assembly Bill (AB) 1600), cities can charge new development for
its relative share of the cost to fund the acquisition of land and improvements to public
facilities. These fees are established based on the nexus between impacts caused by new
development and the improvements to mitigate those impacts that would be funded by the
established fee.
Item 3
Item 3 Staff Report
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In 2020, the Community Services Department retained DTA, formerly David Taussig &
Associates, to prepare a nexus study to update the Parks, Community Center, and Library
Impact Fees. The initial study1 was implemented in August 2021, and in May 2022, DTA
prepared and presented a supplemental analysis2 to address several policy items based on
Finance Committee’s request. This included direction to update the fees from the initial analysis
to address new legislation, AB 602, which came into effect in January 2022. AB 602 was
designed to provide new statewide requirements for local jurisdictions seeking to impose
development impact fees and articulated additional guidance on how local agencies comply
with their impact fee obligations. In June 20223, Council directed staff to convert residential
Parks, Community Center, and Library Impact Fees to reflect a per square foot basis from a per
unit basis.
In February 2024, the Planning and Development Services Department engaged with DTA to
prepare an additional analysis to further comply with AB 602 for these fees. The non-residential
fees for these categories are currently charged on a per square foot basis and are not subject to
the new legislation as this portion of AB 602 more narrowly focuses on impacts related to
residential development.
ANALYSIS
Prior to the initial nexus study that was implemented in August 2021, the City’s Park,
Community Center, and Library Development Impact fees had not been updated since its
inception in 2001. As a result of the updated nexus study and Council adopted fee levels,
beginning FY2022, the Palo Alto development community experienced a substantial increase in
the Parks Impact Fee driven by the current fair market value of land as well as modest increases
to the Community Center and Library Impact Fees (Table 1).
Table 1: Impact of Initial Nexus Study on Development Impact Fees - FY2021 vs FY2022
Year Residential Land Use
Type
Parks
(Per Unit)
Community
Center (Per Unit)
Library
(Per Unit)Total
Single-Family $ 13,103 $ 3,499 $ 1,187 $ 17,789
Single-Family > 3,000 SF $ 19,565 $ 5,086 $ 1,766 $ 26,417
Multi-Family ≤ 900 SF $ 4,337 $ 1,128 $ 390 $ 5,855
FY2020 -
2021
Multi-Family > 900 SF $ 8,577 $ 2,235 $ 710 $ 11,522
Single-Family per unit $ 57,420 $ 4,438 $ 2,645 $ 64,503 FY2021 -
2022 Multi-Family per unit $ 42,468 $ 3,283 $ 1,956 $ 47,707
Source: City of Palo Alto, FY2021 and FY2022 Municipal Fee Schedule
1 https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/reports/city-manager-reports-
cmrs/year-archive/2021/id-12163.pdf
2 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/finance-
committee/2022/20220503/20220503pfcslinked.pdf
3 https://www.cityofpaloalto.org/files/assets/public/v/6/agendas-minutes-reports/agendas-minutes/city-council-
agendas-minutes/2022/20220613/20220613pccsm-final-amended-linked.pdf#page=53
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Conversion of the residential impact fees will support further compliance with AB 602 and more
proportionately impact new residential development based on development size rather than a
single amount per dwelling unit, regardless of size. For further details on the nexus study
methodology and guidance on AB 602, refer to Attachment A: Second Supplement to the
Development Impact Fee Justification – Assembly Bill (“AB”) 602 Compliance.
Using Palo Alto’s building permit data from 2013 to 2024, DTA calculated the average
residential square footage for single-family and multi-family residential units constructed in the
Palo Alto within the last 11 years. The average square footage per single-family and multi-family
unit was determined to be 3,602 and 1,124 square feet, respectively. These units were divided
into the Park, Community Center, and Library Impact Fee per dwelling units (Table 2) to
generate the new per residential square foot fee.
Table 2: FY2025 Council-Approved Development Impact Fees – Current Fees
Current Fees Parks Community
Center Library Total
Single-Family (Per Unit) $ 67,650 $ 5,229 $ 3,116 $ 75,995
Multi-Family (Per Unit) $ 50,034 $ 3,868 $ 2,304 $ 56,206
DTA’s analysis resulted in two frameworks for implementation – distinct rates and a
consolidated rate. Both options are AB 602 compliant and reflect the current maximum
justifiable fee levels that may be imposed by the City on new development under the new
statutory requirements.
A distinct residential fee structure for single-family and multi-family fees is generally used when
(1) there is sufficient building permit data available and (2) a jurisdiction can anticipate the
number of projected units per residential land use type. This framework more proportionately
reflects the size and impact of the residential units. Table 3 provides the recommended fees in
this framework as well as sample impact fees based on residential land use type and square
footage.
Table 3: Framework 1 – Distinct Rates and Sample Impact Fees
Distinct Fees Parks Community
Center Library Total
Single Family (Per Sq. Ft.) $ 18.78 $ 1.45 $ 0.87 $ 21.10
3000 $ 56,340.00 $ 4,350.00 $ 2,610.00 $ 63,300.00
3602 $ 67,645.56 $ 5,222.90 $ 3,133.74 $ 76,002.20
4000 $ 75,120.00 $ 5,800.00 $ 3,480.00 $ 84,400.00
Multi-Family (Per Sq. Ft.) $ 44.50 $ 3.44 $ 2.05 $ 49.99
850 $ 37,825.00 $ 2,924.00 $ 1,742.50 $ 42,491.50
1124 $ 50,018.00 $ 3,866.56 $ 2,304.20 $ 56,188.76
1400 $ 62,300.00 $ 4,816.00 $ 2,870.00 $ 69,986.00
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A single consolidated residential fee structure is generally used when (1) a jurisdiction may not
have sufficient building permit data or (2) may not be able to project the type of future
development. Table 4 provides the recommended fee in this framework as well as sample
impact fees based on residential square footage, regardless of land use type.
Table 4: Framework 2 – Consolidated Rate and Sample Impact Fees
Consolidated Fees Parks Community
Center Library Total
Residential (Per Sq. Ft.) $ 22.68 $ 1.75 $ 1.04 $ 25.47
850 $ 19,278.00 $ 1,487.50 $ 884.00 $ 21,649.50
1124 $ 25,492.32 $ 1,967.00 $ 1,168.96 $ 28,628.28
2000 $ 45,360.00 $ 3,500.00 $ 2,080.00 $ 50,940.00
3602 $ 81,693.36 $ 6,303.50 $ 3,746.08 $ 91,742.94
4000 $ 90,720.00 $ 7,000.00 $ 4,160.00 $ 101,880.00
DTA was able to evaluate and present both frameworks due to the large sample of building
permit data available from Palo Alto. Because these are proposed maximum fee levels, City
Council has the discretion to determine which framework and fee level to adopt, including
imposing a lower fee.
Staff recommends implementation of the Parks, Community Center, and Library Impact Fees
using the distinct rate fee structure because this framework more proportionately reflects the
size and impact of the land use type and is in further compliance with AB 602. The intent of AB
602 is to ensure that impact fees are more proportional to the size of new development and
distinguishing the rates by land use type allows for a more precise assessment of impact fees.
Both frameworks will lower the fees for smaller developments regardless of land use type. As
illustrated in Table 3 and 4 above, DTA’s analysis demonstrates that when imposing a
consolidated fee, the financial magnitude of the impact is more beneficial to multi-family
compared to single-family development. Although the consolidated framework may encourage
multi-family development and increase housing inventory in Palo Alto, it may also result in the
under-collection of impact fees necessary to finance planned facilities
As noted in the City’s newly certified Housing Element4, high fees can impede housing
production by increasing the per unit cost of development, impacting projected returns and
potentially discouraging new home building. Conversion of this fee will complete one of the
objectives under Program 3.1: Fee Waivers and Adjustments in the Housing Element.
Subsequently, as part of the Housing Element program implementation, the City will be
preparing an economic feasibility study to analyze implications that all development impact
fees may have on housing production. These fees will be included in the assessment, and based
4 https://paloaltohousingelement.com/wp-content/uploads/2024/07/Palo-Alto-Housing-Element-6.pdf
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on the study, Council may adjust fees and/or development standards to enable a reasonable
return on investment and ensure sufficient fee collection to support city services.
FISCAL/RESOURCE IMPACT
Development impact fees provide funding for capital improvements in parks, community
facilities, and libraries to mitigate the impacts of new development in the community.
Revenues fluctuate each year based on the amount of residential and non-residential
development occurring in Palo Alto. Currently, staff and DTA is not able to forecast revenue
impacts due to the variability of development and changing economic conditions. DTA has
provided an illustrative example using last fiscal year’s permitting data to demonstrate the
financial impact of the fee conversion. Although the likely outcome of this transition is
decreased revenue for the parks, community facilities, and library impact fees, the updated fee
model will also likely incentivize greater housing production in support of the affordability of
residential development.
Table 5: Estimated Revenue Calculation – Current Fee Schedule
Fee Category Land Use Type Proposed Fee per Unit Total Est. Revenues1
Park SFD $67,650.00 $1,353,000.00
Community Center SFD $5,229.00 $104,580.00
Library SFD $3,116.00 $62,320.00
Total SFR2 $1,519,900.00
Park MFD $50,034.00 $0.00
Community Center MFD $3,868.00 $0.00
Library MFD $2,304.00 $0.00
Total MFR3 $0.00
$1,519,900.00
Notes:
1. Estimate, subject to change based on actual new development that occurs in FY 2024-25.
2. Assumes approximately 20 new single-family residential units in FY 2023-24.
3. Based on actual number of new multi-family units in FY 2023-24; however, these figures are for illustrative
purposes only, as the City anticipates that MFD will increase in future fiscal years and subsequently, the revenues
for multi-family development.
Total Estimated Residential Revenues
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Table 6: Estimated Revenue Calculation – AB 602 Compliant Fee
POLICY IMPLICATIONS
City Council has the authority to charge new development for its relative share of the cost of
specific public facilities, as calculated based on a nexus study and pursuant to state law
requirements. Council also has the authority to restructure fees based on articulated City
policies within legal limits and economic feasibility. The information provided in this report
allows Council to evaluate and adjust the City’s Development Impact Fees for Parks, Community
Centers, and Libraries.
Based on Government Code § 66017, new or increased development impact fees go into effect
no sooner than 60 days after adoption. Should Council adopt the recommended fee conversion,
these fees are expected to be effective on November 25th.
STAKEHOLDER ENGAGEMENT
The Community Services Department presented the initial nexus study and supplemental
report for review to the Parks and Recreation Commission and Finance Committee between
December 2020 and May 2022. On June 13, 2022, Council directed supplemental work related
to the conversion of fees outlined in this report.
ENVIRONMENTAL REVIEW
The recommended actions are not considered a project as defined by the California
Environmental Quality Act pursuant to CEQA regulation 15061(b)(3). The projects in the original
2021 nexus study associated with these fees have been fully analyzed as part of City’s 2030
Comprehensive Plan and its Environmental Impact Report as well as the City’s Parks and Open
Space Master Plan and its Mitigated Negative Declaration; no further CEQA analysis is
necessary.
Fee Category Land Use Type Proposed Fee per Sq. Ft.Total Est. Revenues1
Park SFD $18.78 $699,273.30
Community Center SFD $1.45 $53,990.75
Library SFD $0.87 $32,394.45
Total SFR2 $785,658.50
Park MFD $44.50 $0.00
Community Center MFD $3.44 $0.00
Library MFD $2.05 $0.00
Total MFR3 $0.00
$785,658.50
Notes:
1. Estimate, subject to change based on actual new development that occurs in FY 2024-25.
2. Assumes approximately 37,235 square feet of new single-family residential development occurred in FY 2023-24.
Total Estimated Residential Revenues
3. Based on actual number of new multi-family square footage in FY 2023-24; however, these figures are for
illustrative purposes only, as the City anticipates that MFD will increase in future fiscal years and subsequently, the
revenues for multi-family development.
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ATTACHMENTS
Attachment A: Second Supplement to the Development Impact Fee Justification – Assembly Bill
(“AB”) 602 Compliance
Attachment B: Impact Fee Conversion Ordinance
APPROVED BY:
Jonathan Lait, Planning and Development Services Director
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www.FinanceDTA.com
Irvine | San Jose | San Francisco | Riverside | Dallas | Houston | Raleigh | Tampa
MEMORANDUM
August 20, 2024
To: City of Palo Alto
From: DTA
Subject: Second Supplement to the Development Impact Fee Justification Study –
Assembly Bill (“AB”) 602 Compliance
A Background
DTA, formerly David Taussig & Associates, was retained by the City of Palo Alto (the “City”)
to prepare a Development Impact Fee (“DIF” or “Fee”) Justification Study (the “Study”) in
2020. This Study was adopted by the City Council and the proposed fee schedule was
implemented in August 2021. In January 2022, DTA prepared a follow-up analysis in the
form of a Supplement to the Development Impact Fee Justification Study (the “Supplement”)
that addressed a number of items requested by City Council. Additional detail related to
these tasks can be found in Attachment 2.
B Second Supplement to DIF Study
In September 2023, the City requested that DTA prepare and issue this Second Supplement
to the Development Impact Fee Justification Study (the “Second Supplement”) to address
the requirements of Assembly Bill (“AB”) 602, which was approved by the California State
Legislature and signed by the Governor in 2021 and provides new statewide requirements
for local jurisdictions seeking to impose development impact fees on development projects.
The Mitigation Fee Act, AB 1600, establishes specific requirements that local officials must
follow in establishing, increasing, or imposing development fees. Specifically, local officials
must conduct a “nexus study” to demonstrate a “reasonable relationship” between the fees
and public facilities funded by the fees, and the development project on which the fees are
assessed. AB 602 is designed to provide additional guidance on how local agencies comply
with their impact fee obligations, which affects the methodology used to calculate DIFs. Key
portions of the bill affecting future DIF calculations are summarized below:
On or after January 1, 2022, fee justification studies must identify the existing level
of service (“LOS”) for each public facility, identify the proposed new LOS, and (if
proposed new LOS is greater than existing LOS) include an explanation of why the
new LOS is necessary.
For housing development projects, nexus studies adopted after July 1, 2022, must
calculate the amount of fees based on square footage of proposed units of the
development, unless the local agency demonstrates that another metric is more
appropriate. The bill would require that a “local agency that calculated fees
proportionally to the square footage of the proposed units be deemed to have used
a valid method to establish a reasonable relationship between the fee charged and
the burden posed by development.” This would also apply to multi-family
residences.
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Justification AB 602
Compliance
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2
City of Palo Alto August 20, 2024
Second Supplement to the Development Impact Fee Justification Study
The bill also requires the Department of Housing and Community Development
(“HCD”), on or before January 1, 2024, to create an impact fee nexus study template
that may be used by local jurisdictions to calculate their fees. The bill requires that
the template include a method of calculating the feasibility of housing being built
with a given fee level. The template must be completed by 2024, and local
jurisdictions will have the option (it will not be required) to use the HCD template.
The bill authorizes any member of the public, including an applicant for a
development project, to submit evidence that the city, county, or other local agency
had failed to comply with the Mitigation Fee Act. The bill requires the legislative
body of the city, county, or other local agency to consider any timely submitted
evidence and authorize the legislative body to change or adjust the proposed fee or
fee increase, as specified.
If a nexus study supports the increase of an existing fee, the local agency shall review
the assumption of the nexus study supporting the original fee and evaluate the
amount of the fees collected under the original fee.
Large jurisdictions (county population greater than 250,000) and cities within those
counties must adopt a capital improvement plan as part of the nexus study.
Nexus studies shall be updated at least every 8 years from the period beginning
January 1, 2023.
Importantly, AB 602 does not apply to (i) water and sewer connection and capacity charges,
(ii) school fees, (iii) Quimby fees for parks, and (iv) Mello-Roos or other taxes. These other
fees, taxes, and charges are subject to their own statutory accountability measures.
B.1 Standards-Based Fee Methodology
The methodology used to establish the Park, Community Center, and Library Fees
outlined in the Study adopted in 2021 was based on “standards,” where costs are
based on existing LOS. This Standards-Based Methodology establishes a generic unit
cost for capacity which is then applied to each land use per the existing LOS. The
LOS is based on the existing number of applicable units, such as square feet of
building space or acres of land or per resident for each facility. This standard is not
based on cost but rather on a standard of service. The Standards-Based
Methodology ensures that City facilities are appropriately developed and sized so
that future residents and employees do not cause a reduced LOS by unduly
burdening the infrastructure system, thus leading to decay and deterioration. This
methodology provides several advantages, including not needing to know the cost
of a specific facility, how much capacity or service is provided by the current system,
or having to commit to a specific size of the facility. Another advantage of this
methodology is that it does not involve the planning of any future facilities. This
methodology assigns 100% of the fees to new development and allows the City to
apply the fee revenue to any project. Additionally, this methodology complies with
the requirements of AB 602.
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17000-02975 1/25/2019 Residential New - SF Finaled
LOT 3 575 MAYBELL: PLAN 1, NEW SINGLE FAMILY DWELLING (2275 SF) WITH
BASEMENT (1670 SF), ATTACHED GARAGE (216 SF) AND COVERED PORCHES (495
SF). SCOPE OF WORK INCLUDES A TANKLESS WATER HEATER. ***Plan check
done under 17000-02973***
4,161
17000-02976 1/25/2019 Residential New - SF Finaled
LOT 4 587 MAYBELL: PLAN 4, NEW SINGLE FAMILY DWELLING (2296 SF) WITH
BASEMENT (1978 SF), ATTACHED GARAGE (218 SF) AND COVERED PORCHES.
SCOPE OF WORK INCLUDES A TANKLESS WATER HEATER. ***Plan check done
under 17000-02974***
4,492
17000-02983 11/8/2018 Residential New - SF Finaled
LOT 10, 4135 ORCHARD: PLAN 3, NEW SINGLE FAMILY DWELLING (2304 SF)
WITH BASEMENT (1773 SF), ATTACHED GARAGE (214 SF) AND COVERED
PORCHES (667 SF). SCOPE OF WORK INCLUDES A TANKLESS WATER HEATER.
***Plan review done under 17000-02980***
4,291
17000-02984 6/27/2019 Residential New - SF Finaled
LOT 11, 4139 ORCHARD: PLAN 3, NEW SINGLE FAMILY DWELLING (2304 SF)
WITH BASEMENT (1773 SF), ATTACHED GARAGE (214 SF) AND COVERED
PORCHES (584 SF). SCOPE OF WORK INCLUDES A TANKLESS WATER HEATER.
***Plan review done under 17000-02980***
4,291
17000-02985 7/12/2019 Residential New - SF Finaled
LOT 12, 4150 ORCHARD: PLAN 3, NEW SINGLE FAMILY DWELLING (2304 SF)
WITH BASEMENT (1773 SF), ATTACHED GARAGE (214 SF) AND COVERED
PORCHES (650 SF). SCOPE OF WORK INCLUDES A TANKLESS WATER HEATER.
***Plan review done under 17000-02980***
4,291
17000-02986 7/25/2019 Residential New - SF Finaled
LOT 13, 4158 ORCHARD: PLAN 3, NEW SINGLE FAMILY DWELLING (2304 SF)
WITH BASEMENT (1773 SF), ATTACHED GARAGE (214 SF) AND COVERED
PORCHES (624 SF). SCOPE OF WORK INCLUDES A TANKLESS WATER HEATER.
***Plan review done under 17000-02980***
4,291
17000-02990 8/28/2019 Residential New - SF Finaled
LOT 16, 4188 ORCHARD: PLAN 8, NEW SINGLE FAMILY DWELLING (2308 SF)
WITH BASEMENT (1533 SF), ATTACHED GARAGE (214 SF) AND COVERED
PORCHES (217 SF). SCOPE OF WORK INCLUDES A TANKLESS WATER HEATER.
***Review done under 17000-02979***
4,295
16000-02610 9/30/2021 Residential New - SF Permit Issued NEW 2 STORY SFR 5169 SF W/ BASEMENT 3008 SF AND ATTACHED GARAGE 571
SF 8,748
16000-03225 6/16/2020 Residential New - SF Finaled NEW 2-STORY SFR (4,045 SF), FULL BASEMENT (3060 SF), WITH ATTACHED TWO
CAR GARAGE (447 SF)7,552
17000-01002 6/6/2019 Residential New - SF Finaled ONE STORY HOUSE (2213 SF) (WITH 17000-01211 DETACHED GARAGE (223 SF)) 2,213
17000-02833 9/17/2018 Residential New - SF Finaled NEW SINGLE FAMILY HOME (2431 SF) WITH BASEMENT (1184 SF) ADD (N) BOILER
WATER HEATING SYSTEM 3,615
17000-02981 5/7/2019 Residential New - SF Finaled
LOT 9, 4131 ORCHARD: PLAN 7, NEW SINGLE FAMILY DWELLING (2290 SF) WITH
BASEMENT (1476 SF), AND COVERED PORCHES (188 SF). SCOPE OF WORK
INCLUDES A TANKLESS WATER HEATER.
3,766
17000-02987 8/28/2019 Residential New - SF Finaled
LOT 14, 4168 ORCHARD: PLAN 6, NEW SINGLE FAMILY DWELLING (1986 SF)
WITH BASEMENT (1276 SF), AND COVERED PORCHES (166 SF). SCOPE OF WORK
INCLUDES A TANKLESS WATER HEATER.
3,428
17000-02989 8/28/2019 Residential New - SF Finaled
LOT 15, 4178 ORCHARD: PLAN 2, NEW SINGLE FAMILY DWELLING (2185 SF)
WITH BASEMENT (1787 SF), ATTACHED GARAGE (214 SF) AND COVERED
PORCHES (424 SF). SCOPE OF WORK INCLUDES A TANKLESS WATER HEATER.
4,186
17000-03128 9/27/2018 Residential New - SF Finaled NEW 2-STORY SINGLE FAMILY RESIDENCE WITH ATTACHED GARAGE 237SF 3,704
18000-02300 12/3/2018 Residential New - SF Finaled NEW 2-STORY SINGLE FAMILY RESIDENCE (2418 SF) WITH COVERED PORCH (347
SF) ATTACHED GARAGE (232 SF) WITH TANKLESS WATER HEATER AND A/C.2,650
19000-02306 10/27/2021 Residential New - SF Permit Issued
NEW SFR (FACTORY BUILT) APPROXIMATELY 2667 SQ FT WITH SITE BUILT
ATTACHED GARAGE 297 SF AND SITE BUILT SCREEN PORCH 695 SF
**Two approved plan set one is the state approved stamped set one is the PA
approved set for the porch and garage, inspectors to review both***
2,964
17000-01543 9/20/2018 Residential New - SF Finaled NEW 2 STORY SFR 3440 SF W/ BASEMENT 2082 SF AND ATTACHED GARAGE 312
SF 5,834
18000-02385 9/30/2021 Residential New - SF Permit Issued TWO-STORY HOUSE (3272 SF) WITH ATTACHED GARAGE (68 SF),
UNCONDITIONED BASEMENT (199 SF)3,539
18000-03079 4/15/2019 Residential New - SF Finaled NEW 2-STORY HOUSE (2486.7 SF) WITH ATTACHED GARAGE (213 SF) 2,700
18000-03246 4/17/2019 Residential New - SF Finaled
NEW TWO-STORY SFD (2548 SF), WITH ATTACHED GARAGE (293 SF)
No grading permit required/PW will stamp plans when all departments have
approved and building is ready to issue.
2,841
18000-03250 8/2/2019 Residential New - SF Finaled NEW 2-STORY WOOD FRAMED HOUSE (2472 SF), WITH ATTACHED GARAGE (214
SF) WITH FULL BASEMENT (1702 SF) 18-3250 4,388
19000-00322 7/25/2019 Residential New - SF Finaled NEW TWO-STORY HOUSE (4313 SF) WITH ATTACHED GARAGE (427 SF), WITH
BASEMENT (2932 SF),7,672
19000-00396 6/5/2019 Residential New - SF Finaled NEW TWO-STORY HOUSE (2758 SF) WITH BASEMENT (1668 SF) 4,426
19000-01258 9/18/2019 Residential New - SF Finaled NEW TWO-STORY HOUSE (3521 SF) WITH BASEMENT (2216 SF) 5,737
17000-02973 11/8/2018 Residential New - SF Finaled
LOT 1: PLAN 1, NEW SINGLE FAMILY DWELLING (2275 SF) WITH BASEMENT (1670
SF), ATTACHED GARAGE (216 SF) AND COVERED PORCHES (497 SF). SCOPE OF
WORK INCLUDES A TANKLESS WATER HEATER. ++++Structural calcs and
supplemental documentation in Annie's overhead bin+++
4,658
17000-02974 11/8/2018 Residential New - SF Finaled
LOT 569 MAYBELL 2: PLAN 4, NEW SINGLE FAMILY DWELLING (2296 SF) WITH
BASEMENT (1978 SF), ATTACHED GARAGE (218 SF) AND COVERED PORCHES.
SCOPE OF WORK INCLUDES A TANKLESS WATER HEATER.
4,492
17000-02977 1/25/2019 Residential New - SF Finaled
LOT 5, 589 MAYBELL: PLAN 5, NEW SINGLE FAMILY DWELLING (2283 SF) WITH
BASEMENT (1616 SF), ATTACHED GARAGE (220 SF) AND COVERED PORCHES
(450 SF). SCOPE OF WORK INCLUDES A TANKLESS WATER HEATER.
4,119
Building Permit Data - Single-Family Residential
Total Sq. Ft.
Incl. Basement
and Garage
Permit No Date Issued Construction Type Description Status Description
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17000-02978 4/11/2019 Residential New - SF Finaled
LOT 6 4103 CLEMO AV: PLAN 9, NEW SINGLE FAMILY DWELLING (2303 SF) WITH
BASEMENT (1616 SF), ATTACHED GARAGE (220 SF) AND COVERED PORCHES
(450 SF). SCOPE OF WORK INCLUDES A TANKLESS WATER HEATER.
4,139
17000-02979 4/11/2019 Residential New - SF Finaled
LOT 7, 4121 ORCHARD: PLAN 8, NEW SINGLE FAMILY DWELLING (2308 SF) WITH
BASEMENT (1533 SF), ATTACHED GARAGE (214 SF) AND COVERED PORCHES (229
SF). SCOPE OF WORK INCLUDES A TANKLESS WATER HEATER.
4,055
17000-02980 5/7/2019 Residential New - SF Finaled
LOT 8, 4123 ORCHARD: PLAN 3, NEW SINGLE FAMILY DWELLING (2304 SF) WITH
BASEMENT (1773 SF), ATTACHED GARAGE (214 SF) AND COVERED PORCHES (542
SF). SCOPE OF WORK INCLUDES A TANKLESS WATER HEATER.
4,291
18000-00572 10/4/2018 Residential New - SF Finaled NEW 2-STORY SINGLE FAMILY RESIDENCE 2254 SF AND CONDITIONED
BASEMENT 1426SF 3,680
18000-00789 9/6/2018 Residential New - SF Finaled NEW ONE-STORY SINGLE HOUSE (2067 SF), WITH ATTACHED GARAGE (320 SF)
(Bone Structure)2,387
18000-00817 10/26/2018 Residential New - SF Finaled NEW TWO STORY HOUSE (3257 SF)3,257
18000-00936 1/16/2019 Residential New - SF Finaled NEW ONE-STORY SINGLE FAMILY RESIDENCE 4056SF WITH ATTACHED GARAGE
235SF 4,250
18000-01006 11/9/2020 Residential New - SF Permit Issued ONE-STORY HOUSE (3247 SF), WITH ATTACHED GARAGE (504 SF), NEW
BASEMENT (3097 SF)6,848
18000-01219 12/11/2018 Residential New - SF Finaled NEW 2-STORY SINGLE FAMILY RESIDENCE 3847SF WITH ATTACHED GARAGE
213SF.4,060
18000-01223 10/9/2018 Residential New - SF Finaled NEW SINGLE STORY RESIDENCE 1545SF (DETACHED GARAGE 223SF SEPARATE
PERMIT)1,768
18000-01227 9/27/2018 Residential New - SF Finaled NEW ONE-STORY SINGLE FAMILY RESIDENCE 1,545SF (DETACHED GARAGE
223SF)1,768
18000-01307 10/1/2018 Residential New - SF Finaled NEW 2-STORY SINGLE FAMILY RESIDENCE 2023SF 2,023
18000-01312 9/27/2018 Residential New - SF Finaled NEW TWO STORY HOUSE (2030 SF). SCOPE OF WORK INCLUDES TANKLESS
WATER HEATER. ***PW to stamp plans prior to permit issuance***2,030
18000-01316 10/2/2018 Residential New - SF Finaled NEW 2-STORY SINGLE FAMILY RESIDENCE 2023SF 2,023
18000-01365 9/18/2018 Residential New - SF Finaled NEW TWO STORY SFD (2711 SF) WITH AN ATTACHED GARAGE (224 SF) 2,935
18000-01392 3/19/2019 Residential New - SF Finaled NEW TWO-STORY FAMILY (1672 SF) WITH ATTACHED GARAGE (443 SF) 2,115
18000-01395 3/19/2019 Residential New - SF Finaled NEW TWO-STORY HOUSE (1672 SF) WITH ATTACHED GARAGE (443 SF) 2,115
18000-01398 10/2/2018 Residential New - SF Finaled NEW 2-STORY SINGLE FAMILY RESIDENCE 2670SF WITH ATTACHED GARAGE
227SF 2,896
18000-01420 5/23/2019 Residential New - SF Finaled ONE STORY HOUSE (2459 SF) AND ATTACHED GARAGE (258 SF) 2,712
18000-01447 9/10/2018 Residential New - SF Finaled
NEW 2-STORY HOUSE (2519 SF) WITH ATTACHED GARAGE (335 SF) CURRENTLY
REVIEW WITH IR PLANNING PROJECT 18PLN-59 (address to be changed to 3219
Waverley after final inspection - see pending address assignment in documents
tab)
2,854
18000-01511 7/22/2019 Residential New - SF Finaled NEW 2-STORY HOUSE (2084 SF) AND ATTACHED GARAGE (223 SF) 2,307
18000-01583 9/20/2018 Residential New - SF Finaled NEW TWO STORY HOUSE (3867 SF) SCOPE OF WORK INCLUDES A NEW
TANKLESS WATER HEATER.4,082
18000-01663 9/25/2018 Residential New - SF Finaled NEW TWO-STORY HOUSE (2985 SF) WITH ATTACHED GARAGE (304 SF) 3,289
18000-01680 8/27/2019 Residential New - SF Finaled TWO-STORY HOUSE (5,799 SF) WITH BASEMENT (2551 SF) WITH ATTACHED
TRELLIS (662 SF)8,350
18000-01718 11/2/2018 Residential New - SF Finaled NEW 2-STORY SINGLE FAMILY RESIDENCE 2,620SF WITH ATTACHED GARAGE
225SF 2,845
18000-01804 11/6/2018 Residential New - SF Finaled
NEW SFR (4380 SF) WITH ATTACHED GARAGE (419 SF) A/C AND TAKNLESS
WATER HEATER (2 QTY) AND NEW LANDSCAPE***Modified scope of work to add
install VIF sewerage ejector pump to be installed per plan notes on sheet C-2 dt
7/16/19***
4,799
18000-01832 10/23/2018 Residential New - SF Finaled NEW TWO-STORY HOUSE (2390 SF) WITH BASEMENT (1798 SF)***Add 400 amps
to scope of work is approved by utilities dt***4,188
18000-01849 1/7/2019 Residential New - SF Finaled UNIT 1: NEW 2-STORY HOUSE (1803 SF) WITH ATTACHED GARAGE (212 SF) (356
& 358 Hawthorne at front of lot - 357 Bryant Court at rear of lot)2,015
18000-01850 1/7/2019 Residential New - SF Finaled UNIT 2: NEW 2-STORY HOUSE (1791 SF) WITH ATTACHED GARAGE (212 SF) (356
& 358 Hawthorne at front of lot - 357 Bryant Court at rear of lot)2,003
18000-01851 1/7/2019 Residential New - SF Finaled UNIT 3: NEW 1-STORY HOUSE (967 SF) WITH ATTACHED GARAGE (237 SF) (357
Bryant Court at rear of lot - 356 & 358 Hawthorne Ave at front of lot)1,204
18000-01877 10/11/2018 Residential New - SF Finaled NEW 2-STORY SFR WITH ATTACHED 2-CAR GARAGE, TANKLESS WATER HEATER
AND A/C 3,437
18000-01960 11/16/2018 Residential New - SF Finaled NEW 2-STORY SINGLE FAMILY RESIDENCE 2047 SF. (DEMO RESIDENCE IN
PREPARATION FOR NEW HOME CONSTRUCTION. UNDER SEPARATE PERMIT)2,047
18000-02003 11/1/2018 Residential New - SF Finaled NEW 2-STORY SFR (3341 SF) WITH ATTACHED GARAGE (256 SF) TANKLESS
WATER HEATER AND A/C 3,597
18000-02056 4/5/2019 Residential New - SF Finaled NEW TWO-STORY HOUSE (2672SF) WITH A/C AND TANKLESS WATER HEATER. 2,672
18000-02073 12/17/2018 Residential New - SF Finaled NEW TWO-STORY HOUSE (2264 SF), WITH ATTACHED GARAGE (213 SF) 2,477
18000-02173 7/29/2019 Residential New - SF Finaled
NEW 2-STORY SINGLE FAMILY RESIDENCE 2366 SF WITH BASEMENT 1640 SF
AND ATTACHED SINGLE CAR GARAGE 231SF. INCLUDES LEVEL 2 ELECTRIC
VEHICLE CHARGING UNIT ON SIDE OF GARAGE.
4,237
18000-02215 12/2/2019 Residential New - SF Finaled NEW 2-STORY SFD (3452 SF) WITH ATTACHED GARAGE (2227 SF) 3,679
18000-02235 2/6/2019 Residential New - SF Finaled NEW 2-STORY SFR (1643 SF) WITH ATTACHED GARAGE (225 SF) AND TANKLESS
WATER HEATER.1,868
18000-02236 2/6/2019 Residential New - SF Finaled
NEW 2-STORY SFR (1652 SF) WITH ATTACHED GARAGE (225 SF) AND TANKLESS
WATER HEATER. HOUSE IS AT REAR OF LOT (FRONT HOUSE UNDER 845
WEBSTER)
1,877
18000-02291 8/28/2019 Residential New - SF Permit Issued RES: FRONT HOUSE: 2-STORY SINGLE FAMILY RESIDENCE, 2102 SF WITH
ATTACHED GARAGE 230 SF 2,332
18000-02292 8/28/2019 Residential New - SF Permit Issued RES: REAR HOUSE: 2-STORY SINGLE FAMILY RESIDENCE 2102 SF AND
ATTACHED GARAGE 230 SF 2,332
18000-02294 1/8/2019 Residential New - SF Finaled NEW 2-STORY SINGLE FAMILY RESIDENCE. (NEW DETACHED GARAGE 372 SF
UNDER SEPARATE PERMIT)2,949
18000-02324 3/27/2019 Residential New - SF Finaled NEW 2-STORY HOUSE (3993 SF) WITH BASEMENT(2066 SF) 6,059
18000-02401 7/1/2019 Residential New - SF Finaled
NEW 2-STORY SINGLE FAMILY RESIDENCE 2955SF WITH BASEMENT 1971SF.
***grading permit and letter regarding dewatering required to be submitted,
reviewed and approved prior to building issuance***
4,926
18000-02568 4/19/2019 Residential New - SF Finaled NEW 2-STORY FAMILY HOUSE (2908 SF) WITH ATTACHED GARAGE (235 SF) 3,143
Item 3
Attachment A - Second
Supplement to
Development Impact Fee
Justification AB 602
Compliance
Item 3: Staff Report Pg. 20 Packet Pg. 30 of 302
18000-02617 4/12/2019 Residential New - SF Finaled NEW 2-STORY HOME (2101 SF) WITH ATTACHED GARAGE (223 SF) AND
BASEMENT (1459 SF) INCLUDES A/C AND TANKLESS WATER HEATER.3,783
18000-02657 12/10/2019 Residential New - SF Finaled NEW 2-STORY SINGLE FAMILY RESIDENCE 5800SF (NEW DETACHED 4-CAR
GARAGE WITH WORKSHOP ON 2ND FLOOR 2040SF SEPARATE PERMIT 18-2658)5,800
18000-02733 4/15/2019 Residential New - SF Finaled NEW ONE STORY SINGLE FAMILY RESIDENCE 2,277SF WITH ATTACHED GARAGE
221SF.2,498
18000-02819 2/1/2019 Residential New - SF Finaled
NEW SINGLE STORY SFD (2920 SF) WITH ATTACHED ONE CAR GARAGE (244 SF).
SCOPE OF WORK INCLUDES TANKLESS WATER HEATER. ****PW to stamp
approved sets****
3,164
18000-02840 6/28/2019 Residential New - SF Finaled NEW ONE STORY SINGLE FAMILY RESIDENCE 2706SF AND ATTACHED 211SF
GARAGE.2,917
18000-02940 4/16/2019 Residential New - SF Finaled NEW TWO STORY SINGLE FAMILY DWELLING (2474 SF) AND ATTACHED
GARAGE (702 SF). SCOPE OF WORK INCLUDES A TANKLESS WATER HEATER 3,176
18000-03023 6/11/2019 Residential New - SF Finaled NEW ONE STORY SINGLE FAMILY DWELLING (1479 SF). 1,479
18000-03059 6/17/2019 Residential New - SF Finaled
NEW 2-STORY ACCESSORY HOUSE (2689 SF) WITH ATTACHED ONE CAR
GARAGE (300 SF) ***4/2/19 Scope of work modified to New two story main house
(2731 sf) with attached garage (300 sf)
3,031
18000-03123 6/3/2019 Residential New - SF Finaled NEW TWO STORY SINGLE FAMILY RESIDENCE 2856 WITH BASEMNT 2025SF AND
ATTACHED GARAGE 211SF 5,092
18000-03177 10/15/2020 Residential New - SF Finaled TWO STORY SFR (2784 SF) WITH ATTACHED GARAGE (269 SF) TANKLESS WATER
HEATER AND A/C.3,053
18000-03265 8/21/2019 Residential New - SF Finaled NEW 2-STORY SINGLE FAMILY RESIDENCE 2,730 SF WITH BASEMENT 1,515 SF
AND ATTACHED GARAGE 241SF 4,486
19000-00005 9/17/2019 Residential New - SF Finaled NEW 2-STORY SINGLE FAMILY RESIDENCE 1957 SF WITH BASEMENT 991 SF. 2,948
19000-00123 5/20/2019 Residential New - SF Finaled NEW 2-STORY HOUSE WITH ATTACHED GARAGE, A/C AND TANKLESS WATER
HEATERS (QTY 2)2,855
19000-00202 5/24/2019 Residential New - SF Finaled NEW SINGLE STORY HOME (2380 SF) WITH ATTACHED GARAGE (441 SF) WITH
A/C AND TANKLESS WATER HEATER.2,821
19000-00332 6/26/2019 Residential New - SF Finaled NEW 2-STORY SINGLE FAMILY RESIDENCE 2772 SF WITH BASEMENT 1643 SF 4,415
19000-00339 9/4/2019 Residential New - SF Permit Issued 2-STORY SINGLE FAMILY RESIDENCE 5796 SF WITH BASEMENT 3301 SF. 9,097
19000-00387 6/12/2019 Residential New - SF Finaled NEW ONE STORY HOUSE (2355 SF) WITH ATTACHED GARAGE (220 SF). SCOPE
OF WORK INCLUDES A TANKLESS WATER HEATER.2,575
19000-00410 7/19/2019 Residential New - SF Finaled NEW 2-STORY HOUSE (2330 SF) WITH ATTACHED GARAGE (221SF) INCLUDING
A/C AND TANKLESS WATER HEATER.2,551
19000-00508 6/19/2019 Residential New - SF Finaled NEW 2-STORY SINGLE FAMILY RESIDENCE (2561 SF) INCLUDES INSTALL (N)
A/C, TANKLESS WATER HEATER AND 200 AMP UPGRADE.2,561
19000-00531 10/28/2019 Residential New - SF Finaled RES: TWO STORY HOUSE (2092.6 SF) WITH BASEMENT (1401 SF) 3,494
19000-00575 7/12/2019 Residential New - SF Finaled NEW 2-STORY (2422 SF) WITH ATTACHED GARAGE (275 SF) TANKLESS WATER
HEATER AND A/C.2,697
19000-00588 2/12/2022 Residential New - SF Permit Issued
SINGLE STORY SFD (2725 SF) WITH ATTACHED ONE CAR GARAGE (259 SF) AND
COVERED PORCHES (370 SF). SCOPE OF WORK INCLUDES TWO TANKLESS
WATER HEATERS.
2,984
19000-00627 8/19/2019 Residential New - SF Finaled SINGLE STORY SFR (2918 SF) WITH ATTACHED GARAGE (290 SF),TANKLESS
WATER HEATER, A/C AND HEAT PUMP.3,208
19000-00641 9/6/2019 Residential New - SF Finaled NEW TWO-STORY HOUSE (2696 SF) WITH ATTACHED GARAGE (213 SF) G& E not
required 2,909
19000-00723 8/6/2019 Residential New - SF Finaled NEW TWO-STORY HOUSE (3660 SF) WITH ATTACHED GARAGE (410 SF) 4,070
19000-00765 8/6/2019 Residential New - SF Finaled NEW 2 STORY SINGLE FAMILY RESIDENCE WITH ATTACHED GARAGE 219SF 3,370
19000-00811 10/10/2019 Residential New - SF Finaled NEW 2-STORY 3083SF SINGLE FAMILY RESIDENCE. ***change in scope of work
to remove the basement*** 10/7/19 oc 3,083
19000-00850 7/18/2019 Residential New - SF Finaled NEW 2-STORY SFR (2371 SF) WITH ATTACHED GARAGE (273 SF) WITH A/C (QTY
2) AND TANKLESS WATER HEATER.2,644
19000-00851 8/9/2019 Residential New - SF Finaled NEW TWO STORY SFD (2248 SF). SCOPE OF WORK INCLUDES A TANKLESS
WATER HEATER.2,688
19000-00888 8/6/2019 Residential New - SF Finaled NEW TWO STORY HOUSE (3672 SF), WITH BASEMENT (1,177.27 SF) 4,849
19000-00898 10/22/2019 Residential New - SF Finaled ONE STORY HOUSE WITH A BASEMENT (3282 SF) WITH ATTACHED GARAGE (231
SF). SCOPE OF WORK INCLUDES A TANKLESS WATER HEATER.3,513
19000-00902 10/25/2019 Residential New - SF Finaled NEW ONE STORY (3509 SF) WITH ATTACHED GARAGE (479 SF) 3,988
19000-00907 7/18/2019 Residential New - SF Finaled NEW (2) STORY SINGLE FAMILY 2250 SF RESIDENCE AND BASEMENT 1440 SF
WITH ATTACHED GARAGE 224 SF.3,914
19000-00918 8/29/2019 Residential New - SF Finaled NEW ONE STORY HOUSE (1943 SFT) WITH BASEMENT (1330 SF) 3,272
19000-00936 1/10/2020 Residential New - SF Finaled NEW 2-STORY SFR (2319 SF) WITH ATTACHED GARAGE (229 SF) WITH TANKLESS
WATER HEATER AND A/C.2,548
19000-00938 9/10/2019 Residential New - SF Finaled NEW SINGLE STORY SFD (2453 SF) WITH ATTACHED GARAGE (223 SF). SCOPE OF
WORK INCLUDES A TANKLESS WATER HEATER.2,676
19000-00994 9/3/2019 Residential New - SF Finaled
NEW 2-STORY SINGLE FAMILY RESIDENCE 4,606SF WITH BASEMENT 2421SF
AND ATTACHED GARAGE 223SF. INCLUDES (1) LEVEL 2 EVSE AND (1) LEVEL 3
EVSE AT GARAGE AREA. PHOTOVOLTAIC SYSTEM DEFERRED TO SEPARATE
PERMIT.
7,250
19000-01004 10/28/2019 Residential New - SF Finaled NEW TWO STORY HOUSE (2575 SF) WITH ATTACHED GARAGE (260 SF) 2,835
19000-01043 10/11/2019 Residential New - SF Finaled NEW TWO-STORY HOUSE (2493 SF) HOUSE IS ALL ELECTRIC 2,493
19000-01092 9/18/2019 Residential New - SF Finaled NEW SFR (3116 SF) WITH BASEMENT (2834 SF) ATTACHED GARAGE (441 SF) A/C
AND TANKLESS WATER HEATER.6,391
19000-01111 9/9/2019 Residential New - SF Finaled ONE-STORY HOUSE (3358 SF) WITH ATTACHED GARAGE (340 SF) AND
BASEMENT (3161 SF)6,859
19000-01142 9/13/2019 Residential New - SF Expired NEW TWO-STORY HOUSE (3021 SF) WITH BASEMENT (1821 SF) 4,842
19000-01236 10/7/2019 Residential New - SF Finaled NEW TWO STORY HOUSE (2104 SF), WITH ATTACHED GARAGE (211 SF) AND
BASEMENT (1435 SF)3,750
19000-01310 8/22/2019 Residential New - SF Finaled NEW 2-STORY SINGLE FAMILY RESIDENCE 2185 SF WITH ATTACHED GARAGE
218 SF 2,403
19000-01381 1/30/2020 Residential New - SF Finaled NEW ONE STORY HOUSE (3787 SF) WITH ATTACHED GARAGE (216 SF) 4,003
19000-01417 8/19/2019 Residential New - SF Finaled NEW 2-STORY SFD (2228 SF) WITH ATTACHED GARAGE (221 SF) 2,449
19000-01453 2/13/2020 Residential New - SF Finaled 2-STORY SFR (3247 SF) WITH BASEMENT (871 SF) ON EMPTY LOT. TO INCLUDE
HEAT PUMP FOR COOLING AND BOILER UNIT FOR WATER HEATING 4,423
19000-01479 11/26/2019 Residential New - SF Finaled NEW 1-STORY WOOD FRAMED HOUSE (3032 SF) WITH ATTACHED GARGE (219
SF)3,251
Item 3
Attachment A - Second
Supplement to
Development Impact Fee
Justification AB 602
Compliance
Item 3: Staff Report Pg. 21 Packet Pg. 31 of 302
19000-01485 9/6/2019 Residential New - SF Finaled NEW 2-STORY SFD (2482 SF) WITH ATTACHED GARAGE (232 SF) AND BASEMENT
(1558 SF) COVERED PORCH (265 SF) AND AMMR FOR BOOSTER FAN 4,272
19000-01501 9/23/2019 Residential New - SF Permit Issued 2-STORY HOUSE (2729 SF) WITH ATTACHED GARAGE (213 SF) 2,942
19000-01519 7/14/2020 Residential New - SF Finaled NEW TWO-STORY HOUSE (3166 SF)3,166
19000-01608 3/6/2020 Residential New - SF Finaled NEW 2-STORY SINGLE FAMILY RESIDENCE 2,265 SF. INCLUDES TANKLESS
WATER HEATER. DETACHED GARAGE UNDER SEPARATE PERMIT.2,265
19000-01723 10/3/2019 Residential New - SF Finaled NEW 2-STORY SINGLE FAMILY RESIDENCE 2,687 SF AND 220 SF ATTACHED
GARAGE.2,907
19000-01844 1/10/2020 Residential New - SF Finaled
NEW 2-STORY SINGLE FAMILY RESIDENCE 3,970 SF CONDITIONED SPACE AND
698 SF AGGREGATE COVERED PATIO. (NEW DETACEHED GARAGE 257 SF WITH
HALF BATH UNDER SEPARATE PERMIT)
4,227
19000-01879 11/15/2019 Residential New - SF Finaled NEW 2 STORY SINGLE FAMILY RESIDENCE 2217 SF (DETACHED GARAGE 221 SF
UNDER SEPARATE PERMIT)2,438
19000-01922 6/2/2020 Residential New - SF Finaled NEW 2-STORY HOUSE (2419 SF) WITH ATTACHED GARAGE (220 SF), ATTACHED
COVERED PORCH AND PATIO (428 SF) (Batched Outside to Shum Coda)2,639
19000-01955 7/2/2020 Residential New - SF Finaled NEW TWO-STORY HOUSE (2773 SF) WITH ATTACHED GARAGE (237 SF) 3,010
19000-01959 12/9/2019 Residential New - SF Finaled NEW ONE STORY HOUSE ATTACHED ONE CAR GARAGE (3015 SQFT) 3,015
19000-01986 12/13/2019 Residential New - SF Finaled 2-STORY HOUSE (5557 SF), WITH ATTACHED GARAGE (443 SF), BASEMENT (3518
SF)9,519
19000-01989 12/12/2019 Residential New - SF Finaled NEW 2-STORY HOME (3521 SF) WITH A/C AND TANKLESS WATER HEATER. 3,863
19000-02110 2/12/2020 Residential New - SF Finaled NEW 2-STORY SFR (3349 SF) WITH ATTACHED GARAGE (289SF) TANKLESS
WATER HEATER, A/C AND 200 AMP SERVICE.3,638
19000-02122 1/28/2020 Residential New - SF Finaled NSFR 1697SF SINGLE STORY 1,697
19000-02156 1/15/2020 Residential New - SF Finaled NEW 2-STORY SINGLE FAMILY RESIDENCE 3,686 SF WITH ATTACHED GARAGE
451 SF. ***no grading permit required**4,137
19000-02210 11/12/2019 Residential New - SF Finaled NEW 2-STORY SINGLE FAMILY HOUSE (2463 SF) WITH ATTACHED GARAGE (214
SF)2,677
19000-02213 2/19/2020 Residential New - SF Permit Issued SFR 2 STORY 3088 SF WITH ATTACHED GARAGE (220 SF) AND BASEMENT (1600
SF)4,908
19000-02237 5/28/2020 Residential New - SF Finaled SINGLE STORY SFR WITH ATTACHED GARAGE (3730 SF) TO INCLUDE A/C,
TANKLESS WATER HEATER, HEAT PUMP, 400 AMP ELECTRICAL SERVICE 3,730
19000-02290 7/2/2020 Residential New - SF Permit Issued 2-STORY SFR (4257 SF) WITH A/C UNITS (2) TANKLESS WATER HEATER (2) AND
EVSE (BATCHED 4LEAF)4,257
19000-02312 6/16/2020 Residential New - SF Finaled
NEW SFR (2276 SF) CONDITIONED SPACE WITH ATTACHED GARAGE (256 SF)
A/C, TANKLESS WATER HEATER AND EVSE. (BATCHED OUTSIDE PLAN CHECK
4LEAF)
2,532
19000-02491 12/18/2019 Residential New - SF Finaled NEW 2-STORY SINGLE FAMILY RESIDENCE 3,527 SF WITH BASEMENT 2,063 SF
WITH 400 AMP SERVICE 5,591
19000-02750 8/18/2020 Residential New - SF Finaled NEW 2-STORY HOUSE (3799 SF) WITH ATTACHED GARAGE (391 SF) AND
BASEMENT (2507 SF) PORCH (586 SF)6,697
19000-02797 8/20/2020 Residential New - SF Finaled
2-STORY SFR (2766 SF) WITH BASEMENT (1877 SF) COVERED PORCH AREAS (676
SF) TO INCLUDE TWO (2) A/C AND TWO (2) TANKLESS WATER HEATERS.
[BATCHED SHUM CODA] - Grading Permit Required-See Attached in documents.
5,224
19000-02817 2/24/2020 Residential New - SF Finaled NEW 2-STORY SFR (2725 SF) WITH ATTACHED GARAGE (214 SF) COVERED
PORCH AREAS (742 SF) TANKLESS WATER HEATER AND A/C.2,939
19000-02858 1/29/2021 Residential New - SF Finaled TWO-STORY HOUSE (2999 SF) WITH ATTACHED GARAGE (210 SF) 3,209
19000-02895 5/7/2020 Residential New - SF Finaled NEW 2-STORY HOUSE (2753 SF) WITH ATTACHED GARAGE (217 SF) - no grading
permit required.2,970
19000-02922 6/25/2020 Residential New - SF Finaled NEW 2-STORY SFR (2292 SF) WITH ATTACHED GARAGE (200 SF) 2,493
19000-02925 9/8/2020 Residential New - SF Finaled 2-STORY SFR (2062 SF) WITH A/C AND TANKLESS WATER HEATER. 2,062
19000-03036 6/9/2020 Residential New - SF Finaled NEW TWO STORY RESIDENCE (2784 SF) WITH ATTACHED ONE CAR GARAGE
(224 SF) 19PLN-00227 (BATCHED TO 4LEAF)3,006
19000-03112 10/15/2020 Residential New - SF Permit Issued
RES: 1 STORY HOUSE (4889 SF), ATTACHED GARAGE (524 SF), WITH BASEMENT
(3833 SF), AND COVERED PORCHES (300 SF) **GRADING PERMIT REQUIRED - P.
CHUN**
9,246
19000-03145 9/9/2020 Residential New - SF Finaled NEW 2-STORY HOUSE (2796 SF) WITH ATTACHED GARAGE (220 SF) 3,016
19000-03177 8/7/2020 Residential New - SF Finaled NEW 2-STORY SFR (2625 SF) WITH ATTACHED GARAGE (242 SF) WITH TANKLESS
WATER HEATER, A/C AND 200 AMP ELECTRICAL SERVICE. (BATCHED TO 4 LEAF)2,867
19000-03181 6/2/2020 Residential New - SF Finaled NEW TWO STORY SINGLE FAMILY HOME, WITH A/C AND BOILER. NEW
LANDSCAPING THROUGHOUT.(Batched Outside to Shum Coda)3,357
19000-03201 7/2/2020 Residential New - SF Finaled NEW 2-STORY HOUSE WITH ATTACHED 1 CAR GARAGE 3,431
19000-03206 11/4/2020 Residential New - SF Finaled
NEW 2-STORY SFR (2835 SF) WITH ATTACHED GARAGE (237 SF) TO INCLUDE
TANKLESS WATER, A/C AND 200 AMP ELECTRICAL SERVICE.(Batched Outside
Shum Coda )
3,072
19000-03224 9/2/2020 Residential New - SF Finaled NEW 2-STORY SFR (2403 SF) TO INCLUDE A/C (QTY 2) (BATCHED OUTSIDE 4
LEAF)2,483
19000-03275 11/4/2020 Residential New - SF Finaled NEW CONSTRUCTION OF 2,400 SF TWO STORY HOUSE WITH ATTACHED
GARAGE 308 SF 18PLN-00318 (BATCHED OUTSIDE 4 LEAF)2,708
19000-03292 8/18/2020 Residential New - SF Finaled NEW CONSTRUCTION OF A 2390 SF ONE STORY HOUSE WITH ATTACHED
GARAGE 214 SF 2,604
19000-03297 2/8/2021 Residential New - SF Finaled TWO STORY SINGLE FAMILY DWELLING (2103 SF ) WITH BASEMENT LEVEL (1601
SF ) , NEW HARDSCAPING AND LANDSCAPING. ( CHANGE OF SCOPE 10/6/20 )3,704
19000-03301 8/16/2021 Residential New - SF Permit Issued 2-STORY HOUSE (4509 SF) WITH BASMENT (3070 SF) AND ATTACHED GARAGE
(425 SF) (grading and excavation permit required)8,004
19000-03307 1/20/2021 Residential New - SF Finaled NEW TWO STORY HOUSE (2984 SF) WITH ATTACHED GARAGE (459 SF) 3,443
19000-03329 8/17/2020 Residential New - SF Finaled CONCURRENT REVIEW WITH ARB 19PLN-00390 NEW 2-STORY HOUSE (3088 SF)
WITH BASEMENT (1161 SF)4,249
19000-03344 10/23/2020 Residential New - SF Finaled ONE-STORY HOUSE (2154 SF) WITH ATTACHED GARAGE (256 SF), FRONT/BACK
PORCHES (62 SF)2,410
19000-03350 9/3/2020 Residential New - SF Finaled NEW 2-STORY SINGLE FAMILY RESIDENCE 2,841 SF WITH ATTACHED GARAGE
233 SF. INCLUDES 350 SF COVERED PORCH(BATCHED OUTSIDE 4 LEAF)3,074
19000-03366 8/13/2020 Residential New - SF Finaled RESIDENTIAL CONSTRUCTION OF NEW ONE STORY HOUSE (~3314 SF), AND
ATTACHED GARAGE (425 SF) INSTALL TANK LESS WATER HEATER.3,739
20000-00282 8/18/2020 Residential New - SF Finaled NEW ONE-STORY HOUSE (3660 SF) WITH ATTACHED GARAGE (504 SF),
COVERED PORCHES (75 SF)4,164
Item 3
Attachment A - Second
Supplement to
Development Impact Fee
Justification AB 602
Compliance
Item 3: Staff Report Pg. 22 Packet Pg. 32 of 302
20000-00337 6/10/2020 Residential New - SF Finaled BUILD NEW TWO STORY HOUSE WITH ATTACHED GARAGE [BATCHED 4LEAF] 6,000
20000-00465 7/15/2020 Residential New - SF Finaled CONSTRUCTION OF 2 STORY SINGLE FAMILY HOUSE (~2456 SF) WITH
ASSOCIATED LANDSCAPE AND SITE WORK. (BATCHED SHUMS CODA)2,456
20000-00469 11/18/2020 Residential New - SF Finaled TWO STORY HOUSE 2696 SF WITH ATTACHED GARAGE 213 SF 19PLN-00308 2,909
20000-00487 10/27/2020 Residential New - SF Finaled NEW 2-STORY SFR WITH ATTACHED GARAGE. TO INCLUDE A/C AND TANKLESS
WATER HEATER. (BATCHED SHUMS CODA)2,644
20000-00525 7/14/2021 Residential New - SF Finaled 1-STORY HOME (1705 SF) ON A FLAG LOT WITH ATTACHED GARAGE (229SF) 1,934
20000-00548 10/27/2020 Residential New - SF Finaled NEW 2-STORY SINGLE FAMILY RESIDENCE 3575 SF AND BASEMENT 2403 SF AND
206 SF ATTACHED GARAGE.6,183
20000-00579 9/4/2020 Residential New - SF Finaled NEW CONSTRUCTION OF A 2637 SF TWO STORY HOUSE WITH ATTACHED
GARAGE 214 SF 19PLN-00316.2,851
20000-00594 9/1/2020 Residential New - SF Finaled
2-STORY SFR (2200 SF) WITH ATTACHED GARAGE (230 SF). A/C, TANKLESS
WATER HEATER, 200 AMP SERVICE. PV DEFERRED. [BATCHED 4LEAF] **No
grading permit required**
2,430
20000-00624 6/25/2020 Residential New - SF Finaled NEW 2 STORY SFR 2720 SF WITH ATTACHED GARAGE 223 SF. 2,942
20000-00665 5/3/2021 Residential New - SF Finaled ONE STORY, SINGLE FAMILY RESIDENCE ~5799 SF WITH FULL BASEMENT. ~5239
SF AND ASSOCIATED LANDSCAPING (GRADING PERMIT WILL BE REQUIRED)11,038
20000-00668 1/8/2021 Residential New - SF Finaled
SFR (4200 SF) WITH ATTACHED GARAGE (281 SF) TO INCLUDE COVERED
PORCHES (545 SF) 3 TANKLESS WATER HEATERS AND 2 A/C UNITS. ***basement
(905 SF) to be removed from scope, given valuation to change from $1,250,000
to $1,000,000 and calculated valuation to change from $665,409.28 to
$554,582.98 per applicant revision 1/22*** ***21BLD-00033: REVISION TO
INCLUDE REMOVAL OF BASEMENT AND ASSOCIATED ASPECTS (LIGHTWELL,
SUMP PUMPS) FROM APPROVED SCOPE OF WORK. ADDING POWDER ROOM,
MECHANICAL ROOM. DOORS AT FAMILY AND MECHANICAL ROOM. UPDATED
DOOR & WINDOW SCHEDULE, T24, FOUNDATION PLAN AND LOCATION OF
A/C***
4,481
20000-00670 7/2/2020 Residential New - SF Finaled CONSTRUCT A NEW SINGLE STORY RESIDENCE ~2376 SF WITH ATTACHED
GARAGE ~221 SF 2,601
20000-00701 6/7/2021 Residential New - SF Permit Issued 2-STORY SFR (2800 SF) AND ATTACHED GARAGE (446 SF) WITH A/C, TANKLESS
WATER HEATER ON AN EMPTY LOT.3,246
20000-00712 9/3/2020 Residential New - SF Finaled NEW 2-STORY SFR (2767 SF) WITH ATTACHED GARAGE (257 SF) AND BASEMENT
(1781 SF) A/C (QTY 3) AND TANKLESS WATER HEATERS (QTY 2)4,805
20000-00791 11/17/2020 Residential New - SF Finaled RESIDENTIAL NEW ONE STORY 5 BEDROOM, 5 BATH, 1 HALF BATH HOUSE OF
3,505.03 S.F. AND 460.49 S.F. GARAGE TOTALING 3,965.52 S.F.3,965
20000-00870 11/3/2020 Residential New - SF Finaled SFR (2548 SF) WITH ATTACHED GARAGE (227 SF) COVERED REAR PATIO (140 SF)
ATTACHED TRELLIS AT ENTRY (94 SF) TANKLESS WATER HEATER AND A/C.2,775
20000-01012 2/8/2021 Residential New - SF Expired RESIDENTIAL 2-STORY SFR (2811 SF)2,811
20000-01017 3/25/2021 Residential New - SF Finaled 19PLN-00199: TWO-STORY SINGLE FAMILY RESIDENCE WITH ATTACHED ONE-
CAR GARAGE 2,900
20000-01198 11/19/2020 Residential New - SF Finaled CONSTRUCTION OF A NEW 1,549 SF ONE-STORY SINGLE FAMILY RESIDENTIAL
STRUCTURE. **No Grading permit required**1,777
20000-01479 7/12/2021 Residential New - SF Permit Issued
TWO STORY RESIDENCE ( 2287 sf ) WITH FINISHED BASEMENT ( 1715 sf ) AND
ATTACHED GARAGE. ( 431 sf ) NEW LANDSCAPING THROUGHOUT. Do not issue-
Grading permit required.
4,433
20000-01552 2/9/2021 Residential New - SF Permit Issued TWO STORY HOUSE 2995 SF 19PLN-00301 2,995
20000-01949 3/8/2021 Residential New - SF Finaled NEW 2 STORY HOUSE (2364 SF), WITH ATTACHED GARAGE (236 SF) 2,600
20000-01979 3/22/2021 Residential New - SF Finaled
TWO (2) STORY, SINGLE FAMILY RESIDENCE WITH ATTACHED GARAGE ~2343 SF
AND CORRESPONDING SITE ALTERATIONS, INCLUDING NEW HARDSC -
REVISION TO 20000-01979: MAIN ELECTRICAL PANEL CONNECTION REVISED
TO BE UNDERGROUND
2,343
20000-02004 5/14/2021 Residential New - SF Finaled ONE STORY SFR 2950 SF WITH ATTACHED GARAGE 3,232
20000-02072 3/22/2021 Residential New - SF Finaled TWO-STORY HOUSE (2660 SF), WITH ATTACHED ONE CAR GARAGE (270 SF) No
Grading permit required.2,930
20000-02136 6/16/2021 Residential New - SF Permit Issued NEW TWO STORY SFR WITH ATTACHED GARAGE 18PLN-00269 3,230
20000-02634 8/16/2022 Residential New - SF Permit Issued TWO STORY HOUSE (2771 SF) WITH BASEMENT (1,632 SF), FRONT, BACK, AND
SIDE PORCHES (326 SF)4,403
21BLD-00090 3/25/2021 Residential New - SF Finaled NEW 1-STORY SINGLE FAMILY HOUSE (1364 SF) *no grading permit required* 1,364
21BLD-00473 12/13/2021 Residential New - SF Finaled ONE-STORY SINGLE FAMILY RESIDENTIAL STRUCTURE, 1,455 SF 1,455
21BLD-00548 9/20/2021 Residential New - SF Finaled ONE STORY SFR 1,170 SF 1,170
21BLD-00668 10/6/2021 Residential New - SF Permit Issued ONE STORY SINGLE FAMILY RESIDENCE ~3626 SF WITH ATTACHED CARPORT 3,626
21BLD-00699 9/8/2021 Residential New - SF Finaled TWO STORY HOUSE OF 2549 SQ.FT WITH ATTACHED SINGLE CAR GARAGE (200
SF)2,749
21BLD-00704 2/23/2022 Residential New - SF Permit Issued 2-STORY HOUSE SINGLE FAMILY RESIDENCE ON A 6475 SF LOT. WITH 2474 SF
LIVING AREA, 217 SF GARAGE, TOTALING 2692 SF.2,691
21BLD-00791 6/28/2021 Residential New - SF Finaled 2-STORY SINGLE FAMILY RESIDENCE WITH 1 CAR ATTACHED GARAGE 2,592
21BLD-00837 8/4/2021 Residential New - SF Finaled
NEW 2-STORY SINGLE FAMILY RESIDENCE 3,344SF CONDITIONED SPACE WITH
ATTACHED GARAGE 488SF. 156 SF COVERED PORCH. NEW ELECTRIC SERVICE
400AMPS. (SEPARATE RELATED PERMITS FOR 219 SF PERGOLA,
DECONSTRUCTION OF EXISTING HOUSE 1389SF AND DETACHED GARAGE 476
SF) (DEFERRED SOLAR AND ELECTRIC VEHICLE EQUIPMENT)
3,792
21BLD-00919 9/7/2021 Residential New - SF Expired CONSTRUCTION OF A NEW TWO STORY RESIDENCE 2861 SF WITH AN
ATTACHED GARAGE OF 454 SF 3,315
21BLD-00964 10/6/2021 Residential New - SF Permit Issued
NEW 2-STORY RESIDENCE 5,537SF WITH ATTACHED GARAGE 459SF (NEW
DETACHED ADU 897SF UNDER PERMIT 21BLD-00965 AND NEW ACCESSORY
BUILDING 120SF WITH COVERED PATIO 21BLD-00967)
5,996
21BLD-01006 9/28/2021 Residential New - SF Finaled 2-STORY RESIDENCE ~2095 SF WITH BASEMENT ~1447 SF AND ATTACHED
GARAGE ~228 SF. **Do not issue-grading permit required**3,770
21BLD-01192 1/3/2022 Residential New - SF Permit Issued 2-STORY SFR (2564 SF) WITH BASEMENT (1636 SF) 400 AMP ELECTRICAL
SERVICE, HEAT PUMP AND TRASH ENCLOSURE.4,530
21BLD-01391 4/8/2022 Residential New - SF Permit Issued TWO STORY HOUSE (3938 SF), ATTACHED GARAGE (237 SF) , FULL BASEMENT
(3511 SF)***The approved plans and document are for permit #21BLD-01393***7,686
Item 3
Attachment A - Second
Supplement to
Development Impact Fee
Justification AB 602
Compliance
Item 3: Staff Report Pg. 23 Packet Pg. 33 of 302
21BLD-01621 1/20/2022 Residential New - SF Finaled 2-STORY HOUSE (3127 SF) WITH ATTACHED GARAGE (215 SF) WITH LANDSCAPE 3,342
21BLD-01684 1/13/2022 Residential New - SF Permit Issued TWO STORY SFR 2550 SF 20PLN-00239 2,776
21BLD-01805 12/8/2021 Residential New - SF Finaled 1-STORY HOUSE (2254 SF) WITH ATTACHED GARAGE (418 SF) 2,672
21BLD-01821 10/14/2021 Residential New - SF Permit Issued 2 STORY SINGLE FAMILY RESIDENCE (5330 SF) WITH PARTIAL BASEMENT (1831
SF) WITH BREEZEWAY, ATTACHED ADU (800 SF) **Grading permit required**7,161
21BLD-01956 12/1/2021 Residential New - SF Permit Issued SFR (2521 SF) WITH ATTACHED GARAGE (226 SF) 200 AMP ELECTRICAL SERVICE,
HEAT PUMP AND HEAT PUMP WATER HEATER.2,747
21BLD-02207 12/15/2021 Residential New - SF Finaled SINGLE STORY RESIDENCE 2202 SF. & ATTACHED GARAGE 514 SF WITH 579 S.F.
COVERED PORCHES 2,716
21BLD-02385 2/2/2022 Residential New - SF Finaled 2-STORY HOUSE ~3258 WITH ATTACHED GARAGE ~200 3,458
21BLD-02434 6/21/2022 Residential New - SF Permit Issued
NEW SFR (2865 SF) WITH BASEMENT (2805 SF) AND ATTACHED GARAGE (564 SF)
TO INCLUDE HEAT PUMP, HEAT PUMP WATER HEATER, OUTDOOR KITCHEN
AND 400 AMP ELECTRICAL SERVICE.
6,235
21BLD-02783 10/20/2022 Residential New - SF Permit Issued
TWO-STORY SINGLE FAMILY HOME WITH A SINGLE STORY (3,554 SF),
ATTACHED GARAGE (789 SF), BASEMENT (1625 SF) [DETACHED ACCESSORY
UNIT IN REAR YARD (691 SF) on separate permit]
5,968
21BLD-02944 2/17/2022 Residential New - SF Finaled RES: SINGLE STORY SFR (3158 SF) WITH ATTACHED GARAGE (462 SF), HEAT
PUMP AND HEAT PUMP WATER HEATER.3,620
21BLD-03052 6/7/2022 Residential New - SF Permit Issued ONE STORY HOUSE 2,253 SF, WITH ATTACHED GARAGE 310 SF 2,563
22BLD-00019 5/11/2022 Residential New - SF Permit Issued SFR 2,778 SF WITH ATTACHED SINGLE STALL GARAGE. GRADING,
LANDSCAPING, & HARDSCAPE PER CIVIL & LANDSCAPE DRAWINGS.2,778
22BLD-00107 4/28/2022 Residential New - SF Permit Issued RES: 3,954 SF. 2-STORY, 3-BED, 3.5 BATH SFR 4,208
22BLD-00129 10/24/2022 Residential New - SF Permit Issued TWO-STORY HOUSE (2420 SF), WITH ATTACHED GARAGE (434 SF), PORCH (221
SF)2,854
22BLD-00302 8/18/2022 Residential New - SF Permit Issued TWO-STORY HOUSE 4655 SF, WITH ATTACHED TWO-CAR GARAGE (424 SF).
ALSO PERMIT 22BLD-00302, 22BLD-00303 AND 22BLD-00304 5,079
22BLD-00433 8/24/2022 Residential New - SF Permit Issued 2-STORY HOUSE ~2244 SF AND 434 SF ATTACHED GARAGE 2,675
22BLD-00502 7/13/2022 Residential New - SF Permit Issued Res: 2-STORY SFR (2489 SF) WITH ATTACHED GARAGE (263 SF) TO INCLUDE
HEAT PUMP, HEAT PUMP WATER HEATER AND 200 AMP ELECTRICAL SERVICE.2,752
22BLD-00603 6/5/2023 Residential New - SF Permit Issued SFR 2119 SF WITH BASEMENT 1758 SF AND ATTACHED GARAGE 347 SF 4,224
22BLD-00773 6/23/2022 Residential New - SF Permit Issued
NEW 2-STORY SFR (2,600 SF) WITH CONDITIONED BASEMENT (1,700 SF) AND
ATTACHED GARAGE (400 SF) TO INCLUDE HEAT PUMPS, HEAT PUMP WATER
HEATER, OUTDOOR KITCHEN, OUTDOOR FIREPLACE, AND 400 AMP ELECTRICAL
SERVICE.
4,700
22BLD-00781 12/7/2022 Residential New - SF Permit Issued Res: ONE-STORY SFR ~1448 SF 1,448
22BLD-00992 9/6/2022 Residential New - SF Permit Issued RES: 2-STORY SFR (4,018 SF) WITH HEAT PUMP AND HEAT PUMP WATER
HEATER. 400 AMP ELECTRICAL SERVICE, EVCS 4,018
22BLD-01044 10/25/2022 Residential New - SF Permit Issued SFR (1883 SF) WITH BASEMENT (1868 SF)3,982
22BLD-01048 11/17/2022 Residential New - SF Permit Issued Res: TWO STORY SFR 21PLN-00144 3,244
22BLD-01165 7/11/2023 Residential New - SF Permit Issued SFR: (3092 SF), ATTACHED GARAGE (231 SF) AND ATTACHED PORCH (76 SF) 3,323
22BLD-01219 11/17/2022 Residential New - SF Permit Issued TWO STORY SFR 3026 SF WITH ATTACHED GARAGE 231 SF 3,257
22BLD-01368 2/22/2023 Residential New - SF Permit Issued TWO STORY HOUSE (2515 SF)WITH ATTACHED GARAGE (247 SF) AND
UNCOVERED PARKING SPACE 2,772
22BLD-01371 9/27/2022 Residential New - SF Finaled NEW ONE-STORY HOUSE (717 SF) WITH 2 ATTACHED GARAGE (390 SF) 1,107
22BLD-01580 12/1/2022 Residential New - SF Permit Issued 1-STORY HOUSE WITH 2646 OF HABITABLE AREA, WITH ATTACHED GARAGE
227 SF, 87SF PORCH 2,873
22BLD-01643 11/4/2022 Residential New - SF Permit Issued NEW CONSTRUCTION OF A SINGLE STORY 3 BED AND 3 BATH HOUSE.
DETACHED GARAGE / ADU UNDER PERMIT 1,948
22BLD-01675 3/7/2023 Residential New - SF Permit Issued RES: SINGLE STORY HOME OF ~3436 SF.3,436
22BLD-01760 4/19/2023 Residential New - SF Permit Issued TWO STORY SFR 3239 SF WITH BASEMENT 1368 SF 21PLN-00337 4,607
22BLD-01880 8/1/2022 Residential New - SF Finaled
NEW SINGLE STORY SFR 1500SF WITH ATTACHED GARAGE 232 SF ***THIS
PERMIT RECORD WILL TAKE PLACE OF 16000-02545, REFERENCE REVIEW, FEE,
DOCUMENT AND INSPECTION HISTORY IN 16000-02545
1,732
22BLD-01882 10/20/2022 Residential New - SF Permit Issued SINGLE STORY SFR (2399 SF) WITH ATTACHED GARAGE (226 SF) HEAT PUMP,
HEAT PUMP WATER HEATER, 200 AMP ELECTRICAL SERVICE.2,625
22BLD-02107 12/14/2022 Residential New - SF Permit Issued RES: 2-STORY SFR (3070 SF) WITH ATTACHED GARAGE (228 SF) HEAT PUMPS,
HEAT PUMP WATER HEATERS, AND 400 AMP ELECTRICAL SERVICE.3,298
22BLD-02191 5/2/2023 Residential New - SF Permit Issued 2-STORY SFR (3515 SF) WITH BASEMENT (2,275 SF) ATTACHED GARAGE (227 SF)
HEAT PUMP, HEAT PUMP WATER HEATER, AND 400 AMP ELECTRICAL SERVICE.6,017
22BLD-02198 4/12/2023 Residential New - SF Permit Issued
BUILD SFR (3108 SF) WITH ATTACHED GARAGE (455 SF) HEAT PUMP, HEAT
PUMP WATER HEATER, SOLAR WATER HEATER, PV (5.1 kW) 12 MODULE SYSTEM,
EVCS (32 AMP/ LEVEL 2) AND 400 AMP ELECTRICAL SERVICE.
3,563
22BLD-02407 8/28/2023 Residential New - SF Permit Issued RES: 2-STORY SFR WITH ATTACHED GARAGE, HEAT PUMPS, HEAT PUMP WATER
HEATER AND 400 AMP ELECTRICAL SERVICE.2,930
22BLD-02890 3/29/2023 Residential New - SF Permit Issued NSFR ~4,422 S.F.WITH ATTACHED TWO CAR GARAGE ~ 574 S.F. 4,996
22BLD-02965 8/28/2023 Residential New - SF Permit Issued CONSTRUCTION OF A NEW TWO STORY HOME ~2270 SF W/ ATTACHED ONE
CAR GARAGE & AN ATTACHED ADU ~797SF.2,470
22BLD-03061 8/9/2023 Residential New - SF Permit Issued RES: BUILD SFR WITH HEAT PUMP, HEAT PUMP WATER HEATER, LANDSCAPING,
AND 200 AMP ELECTRICAL SERVICE.2,623
22BLD-03081 6/22/2023 Residential New - SF Permit Issued
2-STORY SFR (3327 SF) WITH ATTACHED GARAGE, ENCLOSED HEAT PUMPS,
HEAT PUMP WATER HEATER, GREY WATER SYSTEM, AND 400 AMP ELECTRICAL
SERVICE.
3,327
22BLD-03175 8/22/2023 Residential New - SF Permit Issued
CONSTRUCTION OF A NEW TWO-STORY 3,824 SF HOUSE WITH 2,166 SF
BASEMENT. NEW COVERED PORCHES, HARDSCAPING AND LANDSCAPING.
(shares plans with new garage 22BLD-03176)
5,990
22BLD-03217 6/30/2023 Residential New - SF Permit Issued CONSTRUCT A NEW 1 STORY SINGLE FAMILY RESIDENCE WITH ATTACHED
GARAGE.2,623
22BLD-03252 7/12/2023 Residential New - SF Permit Issued NEW 2-STORY SFR (2096 SF) WITH ATTACHED GARAGE (449 SF) HEAT PUMP WATER HEATER, AND 200 AMP UNDERGROUND ELECTRICAL SERVICE.2,545
23BLD-00219 6/28/2023 Residential New - SF Permit Issued RES: TWO STORY SFR 2966 22PLN-00389 2,966
23BLD-00422 9/5/2023 Residential New - SF Permit Issued CONSTRUCTION OF A (N) SINGLE STORY SFD OF ~2,372 INCLUDING A ONE CAR
ATTACHED GARAGE 2,372
23BLD-00490 7/18/2023 Residential New - SF Permit Issued SFR (1831 SF) WITH HEAT PUMP, ELECTRICAL WATER HEATER, AND 200 AMP
ELECTRICAL SERVICE.1,831
23BLD-00563 7/3/2023 Residential New - SF Permit Issued New two-story house ~2398 sf. (permits 23bld-00564/00565 are part of this plan
set)2,398
Item 3
Attachment A - Second
Supplement to
Development Impact Fee
Justification AB 602
Compliance
Item 3: Staff Report Pg. 24 Packet Pg. 34 of 302
20000-00706 9/25/2020 Residential New - SF Finaled NEW SINGLE FAMILY ONE-STORY HOUSE 2430 SF. **DETACHED GARAGE UNDER
SEPARATE PERMIT**2,430
20000-00703 1/21/2022 Residential New - SF Permit Issued ONE STORY HOUSE ~3524 SF WITH BASEMENT ~3551 SF AND ATTACHED
GARAGE ~225 SF (needs grading permit)3,749
Average Sq. Ft.3,602
Item 3
Attachment A - Second
Supplement to
Development Impact Fee
Justification AB 602
Compliance
Item 3: Staff Report Pg. 25 Packet Pg. 35 of 302
20000-00728 10/15/2020 Residential New - MF Finaled 59
WILTON COURT APARTMENTS: NEW 4-STORY, MULTIFAMILY AFFORDABLE HOUSING COMPLEX (56,143
SF) TO INCLUDE LAUNDRY FACILITIES, COMMUNITY SPACES, PROPERTY MANAGEMENT OFFICES, SUPPORT SPACES AND PARKING AT THE BASEMENT AND GRADE LEVEL. SOLAR WATER HEATING UNITS
AT ROOF LEVEL. SITE WORK TO INCLUDE BIO TREATMENT AREA WITH ASSOCIATED FENCING,
OUTDOOR BBQ/KITCHEN AREA, BIKE RACKS AND SEATING AREAS.
WILTON COURT APARTMENTS: INSTALL (N) SOLAR WATER HEATING SYSTEM
2,495 952 3.73% 35
18000-03077 2/14/2020 Residential New - MF Permit Issued 57
NEW FOUR STORY APARTMENT BUILDING (37,929 SF) WITH 57 UNITS AND ONE LEVEL OF
UNDERGROUND PARKING (15,593 SF). THERE IS ONE WATER AND GAS METER FOR THE BUILDING WITH
SEPARATE ELECTRIC METERS PER APARTMENT.
*** U&O REQUIRED ***
37,929 665 3.60% 24
22BLD-02633 8/10/2023 Residential New - MF Permit Issued 6 MF: BLDG 3: CONDOMINIUM BUILDING TO INCLUDE HEAT PUMPS, HEAT PUMP WATER HEATERS, AND
600 AMP ELECTRICAL SERVICE.10,362 1,727 0.38% 7
22BLD-02634 TBD Residential New - MF Permit Not Yet Issued 6 MF: BLDG 1: CONDOMINIUM BUILDING TO INCLUDE HEAT PUMPS, HEAT PUMP WATER HEATERS, AND 600 AMP ELECTRICAL SERVICE.10,362 1,727 0.38% 7
22BLD-02636 TBD Residential New - MF Permit Not Yet Issued 6 MF: BLDG 4: CONDOMINIUM BUILDING TO INCLUDE HEAT PUMPS, HEAT PUMP WATER HEATERS, AND
600 AMP ELECTRICAL SERVICE.10,102 1,684 0.38% 6
22BLD-02637 TBD Residential New - MF Permit Not Yet Issued 6 MF: BLDG 5: CONDOMINIUM BUILDING TO INCLUDE HEAT PUMPS, HEAT PUMP WATER HEATERS, AND
600 AMP ELECTRICAL SERVICE.10,102 1,684 0.38% 6
22BLD-03149 TBD Residential New - MF Permit Not Yet Issued 102
****SAFEBUILT*****LINK APARTMENTS: BUILD NEW FOUR STORY 102 UNIT APARTMENTS WITH RETAIL
SPACE ON THE GROUND FLOOR AND A BELOW GRADE PARKING GARAGE 19PLN-00079 (UPDATE 4/24: GRADING PERMIT REQUIRED PRIOR TO BLD ISSUANCE, AHMAD)
92,736 909 6.44% 59
22BLD-02635 10/3/2023 Residential New - MF Permit Issued 6 MF: BLDG 2: CONDOMINIUM BUILDING TO INCLUDE HEAT PUMPS, HEAT PUMP WATER HEATERS, AND
600 AMP ELECTRICAL SERVICE.10,362 1,727 0.38% 7
22BLD-02638 12/18/2023 Residential New - MF Permit Issued 6 MF BLDG 6: CONDOMINIUM BUILDING TO INCLUDE HEAT PUMPS, HEAT PUMP WATER HEATERS, AND 600 AMP ELECTRICAL SERVICE.10,362 1,727 0.38% 7
22BLD-02639 12/18/2023 Residential New - MF Permit Issued 6 MF BLDG 3: CONDOMINIUM BUILDING TO INCLUDE HEAT PUMPS, HEAT PUMP WATER HEATERS, AND
600 AMP ELECTRICAL SERVICE.10,102 1,684 0.38% 6
22BLD-02640 12/18/2023 Residential New - MF Permit Issued 6 MF BLDG 8: CONDOMINIUM BUILDING TO INCLUDE HEAT PUMPS, HEAT PUMP WATER HEATERS, AND
600 AMP ELECTRICAL SERVICE.10,102 1,684 0.38% 6
22BLD-02330 1/24/2024 Residential New - Mixed Use Permit Issued 50
MF: BUILD 4-STORY AFFORDABLE HOUSING COMPLEX (45, 411 SF) WITH SUPPORTING SPACE ON THE
GROUND FLOOR. VARIOUS LANDSCAPE AND SITE IMPROVEMENTS. 2000 AMP ELECTRICAL SERVICE. DEMOLITION OF EXISTING BUILDING DONE UNDER SANTA CLARA COUNTY JURISDICTION.
38,348 767 3.16% 24
18PLN-00043 TBD - Entitled 4 190 CHANNING AV 4,551 1,138 0.25% 3
19PLN-00079 TBD - Entitled 102 788 SAN ANTONIO AVE 83,466 818 6.44% 53
19PLN-00347 TBD - Withdrawn 4 486 HAMILTON AVE 5,375 1,344 0.25% 3
21PLN-00108 TBD - Withdrawn 91 200 PORTAGE 194,128 2,133 5.75% 123
21PLN-00341 TBD - Under Review 70 660 UNIVERSITY 39,876 570 4.42% 25
22PLN-00201 TBD - Under Review 12 739 SUTTER AVE 18,256 1,521 0.76% 12
22PLN-00229 TBD - Entitled 129 3001 EL CAMINO REAL 88,872 689 8.15% 56
23PLN-00010 TBD - Under Review 76 800 SAN ANTONIO RD 89,228 1,174 4.80% 56
23PLN-00058 TBD - Entitled 16 420 ACACIA 33,833 2,115 1.01% 21
23PLN-00136 TBD - Under Review 380 3150 EL CAMINO REAL 441,817 1,163 24.01% 279
24PLN-00012 TBD - Under Review 44 3265 EL CAMINO REAL 24,256 551 2.78% 15
12000-02374 12/10/2013 Residential New - MF Finaled 82
PARK PLAZA: NEW THREE STORY MIXED USE BUILDING WITH ONE LEVEL UNDERGROUND PARKING.
AREA OF UNDERGROUND GARAGE 104,000 SF. COMMERCIAL WARM SHELL ON THE FIRST FLOOR (47,000
SF) AND RESIDENTIAL ON THE SECOND AND THIRD FLOOR (101,500 SF) 82 RESIDENTIAL UNITS. PERMIT
ORIGINALLY ISSUED FOR FOUNDATION ONLY. REMAINDER OF STRUCTURE UNDER 13REV-00764 AND
WAS OPENED FOR THOSE DEPARTMENTS WHICH STILL HAD COMMENTS AT ISSUANCE OF FOUNDATION ONLY PERMIT.
101,500 1,238 5.18% 64
Total Res Sq. Ft.Ave. Sq. Ft. per Unit Percent of Total Units
Combined
Weighted
Average
Building Permit Data - Multi-Family Residential
Permit No. Date Issued Construction Type Description Status Units Description
Item 3
Attachment A - Second Supplement
to Development Impact Fee
Justification AB 602 Compliance
Item 3: Staff Report Pg. 26 Packet Pg. 36 of 302
14000-01528 2/13/2015 Residential New - Mixed Use Finaled 70
STANFORD AFFORDABLE HOUSING: NEW FOUR (4) STORY MIXED USE BUILDING (128,682 SF). FIRST
FLOOR INCLUDES PARKING (14,900 SF) AND COMMERCIAL SPACE (33,034 SF). FLOORS 2-4 CONSIST OF 70 RESIDENTIAL UNITS (80,748 SF). STRUCTURE CONSISTS OF TWO SEPARATE BUILDINGS CONNECTED
BY A WALKWAY. U&O SUBMITTED FOR APARTMENTS.
80,748 1,154 4.42% 51
14000-01553 7/14/2015 Residential New - MF Finaled 58
MULTI-FAMILY BUILDING 1: NEW FOUR STORY MULTI-FAMILY BUILDING WITH 58 UNITS AND ONE LEVEL OF BASEMENT FOR PARKING. AREA BREAKDOWN - UNITS: 69,510 SF, COMMUNITY ROOM: 1,133 SF,
PARKING: 45,713 SF, COVERED WALKWAYS/STAIRS: 36,165 SF. INCLUDES PLAZA SURROUNDING FITNESS
BUILDING
69,510 1,198 3.66% 44
14000-01554 7/14/2015 Residential New - MF Finaled 54
MULTI-FAMILY BUILDING 2: NEW FOUR STORY MULTI-FAMILY BUILDING WITH 54 UNITS. PARKING IS
LOCATED ON THE PARTIALLY SUBMERGED FIRST FLOOR. AREA BREAKDOWN - UNITS: 70,634 SF,
LIBRARY: 1,400 SF, PARKING: 50,783 SF, COVERED WALKWAYS/STAIRS: 27,308 SF.
70,634 1,308 3.41% 45
16000-01781 11/22/2016 Residential New - MF Finaled 11 NEW 11 UNIT MULTIFAMILY RESIDENTIAL BUILDING. 17968 SF (BASEMENT/UNDERGROUND GARAGE
UNDER 15000-03076) **address changed to 430 Forest, Apts A-J & 432 Forest for 3rd floor condo**17,968 1,633 0.69% 11
12000-01204 2/28/2013 Residential New - MF Finaled 8 NEW THREE STORY MIXED USE BUILDING. WITH UNDERGROUND PARKING, FIRST FLOOR OFFICE SPACE
AND EIGHT TWO-STORY RENTAL APARTMENT UNITS ON THE SECOND & THIRD FLOORS.14,271 1,784 0.51% 9
13000-03361 8/26/2015 Residential New - MF Finaled 6
NEW THREE STORY, SIX (6) UNIT TOWNHOUSE BUILDING. ALL SIX UNITS HAVE THE SAME SQUARE
FOOTAGE: AREA PER UNIT RESIDENTIAL: 1237 SF, GARAGE: 460 SF. ALL UNITS TO HAVE SEPARATE
WATER, GAS, AND ELECTRIC METERS. **Application extended to 9/10/15**
7,425 1,238 0.38% 5
07000-00000-027551/23/2013 Residential New - MF Permit Issued 3 NEW 3-UNIT CONDO BLDG (3795 SF) WITH ATTACHED GARAGES (1044 SF) no fees per settlement with CPA 3,795 1,265 0.19% 2
07000-00000-027561/23/2013 Residential New - MF Permit Issued 3 NEW 3-UNIT CONDO BLDG (3795 SF) WITH ATTACHED GARAGES (1044 SF) no fees per settlement with
CPA 3,795 1,265 0.19% 2
11000-03261 6/14/2013 Residential New - Duplex Finaled 2 NEW 2-STORY RESIDENCIAL DUPLEX WITH BASEMENT AND ATTACHED GARAGE. (DEMO PERMIT UNDER
11-3262) ADDRESS CHANGE SUBMITTED 12.10.14 JC 3,405 1,703 0.13% 2
12000-02841 5/14/2013 Residential New - Mixed Use Permit Issued 2
NEW THREE STORY MIXED-USE BUILDING WITH COMMERCIAL AND PARKING AT THE GROUND FLOOR
AND TWO RESIDENTIAL CONDOMINIUM UNITS ABOVE. TRASH ENCLOSURE AND SITE IMPROVEMENTS.
(TI FOR FIRST FLOOR TO BE SHALL BE A SEPARATE PERMIT)ADDITIONAL ADDRESS REQUESTED
06.04.2014 JC
3,840 1,920 0.13% 2
13000-02317 2/26/2014 Residential New - Mixed Use Finaled 2
CORE AND SHELL INCLUDES 4 LEVELS ABOVE GRADE FOR MIXED USE; FIRST 3 LEVELS COMMERCIAL AND
4TH FOR RESIDENTIAL. INCLUDES 3 LEVELS BELOW GRADE PARKING. TENANT IMPROVEMENTS UNDER SEPARATE PERMITS.**VALUATION INCREASED ON MAIN PERMIT FOR 15REV-00134 BY $250K AND
ASSOCIATED FEES COLLECTED.**
4,831 2,416 0.13% 3
13000-02823 9/17/2014 Residential New - Mixed Use Finaled 2 BUILD (N) (10,299 SF) FOUR-STORY, MIXED USE COMMERCIAL/RESIDENTIAL (APTS) BUILDING W/BELOW
GRADE PARKING. (DEMO ON 13000-02824) PV & EV TO BE SUBMITTED SEPARATELY.5,477 2,739 0.13% 3
13000-03386 7/11/2016 Residential New - Duplex Finaled 2 NEW DUPLEX 2-STORY MAIN RESIDENCE WITH BASEMENT ~4600SF. (DEMO UNDER 13-3387) (567
STANFORD AVE, ATTACHED SECOND DWELLING UNIT ~ 748SF (13-3401 : NEW DETACHED GARAGE ~427
SF)
4,600 2,300 0.13% 3
14000-01488 11/21/2014 Residential New - Mixed Use Finaled 2 NEW 4-STORY MIXED USE COMMERCIAL / RESIDENTIAL STRUCTURE ~17500SF. (14-1489- DEMO
COMMERCIAL STRUCTURE)3,005 1,503 0.13% 2
14000-01582 3/3/2017 Residential New - Duplex Finaled 2
LOTS 26 AND 27: PLANS 11 AND 12, ELEVATION: K, STYLE: ENGLISH ARTS AND CRAFTS. THE STRUCTURE
ON LOTS 26 AND 27 ARE ATTACHED SINGLE FAMILY DWELLINGS AND IS BEING BUILT AND PLAN
CHECKED AS A SINGLE STRUCTURE, AREA OF HABITABLE 4,168 SF, AREA OF GARAGE 976 SF, AND AREA
OF COVERED PORCHES 155 SF. FOR LOT 26 (PLAN 11) AREA OF HABITABLE 1951 SF, AREA OF GARAGE 520 SF, AND AREA OF COVERED PORCH IS 93 SF. FOR LOT 27 (PLAN 12) AREA OF HABITABLE 2,217 SF,
AREA OF GARAGE IS 456 SF, AND AREA OF COVERED PORCH IS 68 SF. Lot 26 previously plan 5 and plan
checked under 14000-01562
4,168 2,084 0.13% 3
14000-01584 3/3/2017 Residential New - Duplex Finaled 2
LOTS 28 AND 29: PLANS 11 AND 12, ELEVATION: L, STYLE: LANE WOODS. THE STRUCTURE ON LOTS 26
AND 27 ARE ATTACHED SINGLE FAMILY DWELLINGS AND IS BEING BUILT AND PLAN CHECKED AS A
SINGLE STRUCTURE, AREA OF HABITABLE 4,168 SF, AREA OF GARAGE 976 SF, AND AREA OF COVERED PORCHES 155 SF. FOR LOT 28 (PLAN 11) AREA OF HABITABLE 1951 SF, AREA OF GARAGE 520 SF, AND
AREA OF COVERED PORCH IS 93 SF. FOR LOT 29 (PLAN 12) AREA OF HABITABLE 2,217 SF, AREA OF
GARAGE IS 456 SF, AND AREA OF COVERED PORCH IS 68 SF. Lot 28 was previously Plan 5. Plan check
being done for same model under 14000-01603 (lots 47 and 48)
4,168 2,084 0.13% 3
14000-01588 3/3/2017 Residential New - Duplex Finaled 2
LOTS 32 AND 33: PLANS 11 AND 12, ELEVATION: L, STYLE: LANE WOODS. THE STRUCTURE ON LOTS 26
AND 27 ARE ATTACHED SINGLE FAMILY DWELLINGS AND IS BEING BUILT AND PLAN CHECKED AS A SINGLE STRUCTURE, AREA OF HABITABLE 4,168 SF, AREA OF GARAGE 976 SF, AND AREA OF COVERED
PORCHES 155 SF. FOR LOT 32 (PLAN 11) AREA OF HABITABLE 1951 SF, AREA OF GARAGE 520 SF, AND
AREA OF COVERED PORCH IS 93 SF. FOR LOT 33 (PLAN 12) AREA OF HABITABLE 2,217 SF, AREA OF
GARAGE IS 456 SF, AND AREA OF COVERED PORCH IS 68 SF. Lot 32 was previously Plan 8. Plan check
being done for same model under 14000-01603 (lots 47 and 48)
4,168 2,084 0.13% 3
Item 3
Attachment A - Second Supplement
to Development Impact Fee
Justification AB 602 Compliance
Item 3: Staff Report Pg. 27 Packet Pg. 37 of 302
14000-01603 3/3/2017 Residential New - Duplex Finaled 2
LOTS 47 AND 48: PLANS 11 AND 12, ELEVATION: K, STYLE: ENGLISH ARTS AND CRAFTS. THE STRUCTURE ON LOTS 26 AND 27 ARE ATTACHED SINGLE FAMILY DWELLINGS AND IS BEING BUILT AND PLAN
CHECKED AS A SINGLE STRUCTURE, AREA OF HABITABLE 4,168 SF, AREA OF GARAGE 976 SF, AND AREA
OF COVERED PORCHES 155 SF. FOR LOT 47 (PLAN 11) AREA OF HABITABLE 1951 SF, AREA OF GARAGE
520 SF, AND AREA OF COVERED PORCH IS 93 SF. FOR LOT 48 (PLAN 12) AREA OF HABITABLE 2,217 SF,
AREA OF GARAGE IS 456 SF, AND AREA OF COVERED PORCH IS 68 SF. Lot 47 was previously lot 6X and plan check and plan check fees for this lot number are still in reference to plan 6X. Currently the only
plan 6X is now Lot 53.
4,168 2,084 0.13% 3
15000-01683 9/25/2015 Residential New - Duplex Finaled 2
125 AND 127 HAWTHORNE: NEW TWO STORY DUPLEX (3234 SF) WITH ATTACHED GARAGE (458 SF) AND
TRELLIS (185 SF). SCOPE OF WORK INCLUDES NEW TANKLESS WATER HEATERS. EACH UNIT HAS 1617 SF CONDITIONED AND 229 SF GARAGE.
3,234 1,617 0.13% 2
16000-02134 11/22/2016 Residential New - Duplex Finaled 2 NEW 2 UNIT DETACHED CONDO BUILDING (4495 SF) WITH ATTACHED GARAGE 778 SF **address
changed to 434 & 436 Forest for 2 attached townhouse units**4,495 2,248 0.13% 3
16000-02768 8/7/2017 Residential New - MF Finaled 2 NEW 3 STORY (2) UNIT CONDO 5608 SF W/ ATTACHED GARAGE 920SF 5,608 2,804 0.13%4
14000-01000 9/11/2015 Residential New - Mixed Use Finaled 1
NEW 9571 SQ FT (3) STORY MIXED USE BUILDING TO INCLUDE A GROUND FLOOR FINANCIAL SERVICE,
SECOND FLOOR OFFICE SPACE AND THIRD FLOOR RESIDENTIAL SINGLE UNIT; SHELL AND CORE WITH M.E.P., LANDSCAPING AND SITE IMPROVEMENTS. DEMO EXISTING SINGLE STORY RESTAURANT ON
14000-01001
3,336 3,336 0.06% 2
13000-03096 7/17/2014 Residential New - Mixed Use Finaled 1
COLD SHELL FOR NEW THREE STORY MIXED USE BUILDING (7705 SF). FIRST STORY IS GARAGE AND
LOBBY (2438 SF), SECOND FLOOR IS COMMERCIAL (2165 SF), AND THE THIRD FLOOR IS RESIDENTIAL (2152 SF). SEPARATE PERMIT WILL BE SUBMITTED FOR BUILD OUT OF COMMERCIAL AND RESIDENTIAL
FLOORS. ELECTRIC SERVICE TO BE 500 AMPS. DEMO PERMITS UNDER 13-3097/3098/3099. LOT LINE MUST BE ADJUSTED AND UTILITY EASEMENT CREATED PRIOR TO PERMIT ISSUANCE.
2,152 2,152 0.06% 1
16000-00632 4/12/2017 Residential New - Mixed Use Finaled 16
CONSTRUCTION OF A NEW THREE STORY MIXED USE BUILDING WITH ONE LEVEL OF UNDERGROUND PARKING (71,075 SF). SCOPE OF WORK INCLUDES 16 APARTMENTS ON THE SECOND AND THIRD FLOORS,
OFFICE ON THE SECOND FLOOR, AND RETAIL ON THE FIRST FLOOR. RESIDENTIAL UNITS TO HAVE
SEPARATE ELECTRICAL METERS AND SHARED GAS METERS
19,086 1,193 1.01% 12
Weighted Average Sq. Ft. 1,124
Item 3
Attachment A - Second Supplement
to Development Impact Fee
Justification AB 602 Compliance
Item 3: Staff Report Pg. 28 Packet Pg. 38 of 302
Item 3
Attachment A - Second
Supplement to
Development Impact Fee
Justification AB 602
Compliance
Item 3: Staff Report Pg. 29 Packet Pg. 39 of 302
Summary of Previous Work Performed for the City
A Development Impact Fee Justification Study
On January 15, 2021, DTA issued a Development Impact Fee (“DIF” or “Fee”) Justification
Study (the “Study”) to the City of Palo Alto (the “City”), reflecting the updated fee
recommendations outlined in Table 1 below. The Study was reviewed by the City’s
Finance Committee, Parks and Recreation Commission, and City Council on December
12, 2020, February 23, 2021, and April 12, 2021, respectively. The fees recommended in
the Study were approved by the City Council and implemented as of August 23, 2021,
with the understanding that DTA would evaluate the impact of various City Council
recommendations on the fee calculations and provide an update to the Study
accordingly.
Table 1: 2021 Development Impact Fee Summary Adopted by the City Council1,2
Land Use Type3 Park Community
Center Library Total Fees
Single-Family
Residential (Per Unit) $57,420 $4,438 $2,645 $64,504
Multi-Family Residential
(Per Unit) $42,468 $3,283 $1,956 $47,707
*Notes:
1. Some figures may not sum due to rounding.
2. Fees increase annually by adopted escalator to account for inflation in acquisition and
construction costs.
3. Only residential fees are shown, as the focus of this analysis is on the impact of AB 602 on
residential development.
B First Supplement to the Development Impact Fee Justification Study
In January 2022, the City requested that DTA prepare the follow-up analysis outlined in
the Supplement to the Development Impact Fee Justification Study (the “Supplement”)
that was brought to the Parks and Recreation Commission, Finance Committee, and
City Council on February 22, 2022, May 3, 2022, and June 13, 2022, respectively. This
Supplement addressed the items below:
Task A – Update land acquisition costs;
Task B – Differentiate the fee structure for retail space versus office space;
Task C – Update office density from 250 sq. ft. per employee to 190 sq. ft. per
employee;
Task D – Recommend the frequency with which these schedules should be
updated;
Task E – Evaluate whether the multi- and single-family fee categories should be
divided into multiple categories based on total square feet or some other
measure; and
Task F – Evaluate options for a reduction in fees for new multi-family housing
construction for projects that exceed required percentages of below market rate
(“BMR”) units.
Item 3
Attachment A - Second
Supplement to
Development Impact Fee
Justification AB 602
Compliance
Item 3: Staff Report Pg. 30 Packet Pg. 40 of 302
***NOT YET APPROVED***
1
0160153_kb2_20240829_ay
Ordinance No. _____
Ordinance of the Council of the City of Palo Alto Amending the Fiscal Year 2025
Municipal Fee Schedule to Transition Certain Development Impact Fees from
Per-Unit to Per-Square Foot Fees
The Council of the City of Palo Alto ORDAINS as follows:
SECTION 1. Findings and Declarations. The City Council finds and declares as follows:
A. On September 28, 2021, the Governor of the State of California signed Assembly Bill 602,
effective January 1, 2022, amending the Mitigation Fee Act (California Government Code
Section 66000 et seq.). AB 602 set forth a number of standards and practices for a local
government conducting a nexus study to support a development impact fee.
B. One of the requirements of AB 602 is that a study adopted after July 1, 2022 must either
calculate the proposed fee proportionately to the square footage of the proposed units
or make specified findings explaining why square footage is not an appropriate metric.
C. The City of Palo Alto currently imposes Park, Community Center, and Library development
impact fees on a per-dwelling unit basis.
D. Program 3.1 (Fees Waivers and Adjustments) of the City of Palo Alto 2023-2031 Housing
Element calls for development impact fees for residential development to be converted
from a per-dwelling unit to a per-square foot standard.
E. The City Council has determined that square footage is an appropriate metric for
calculating Park, Community Center, and Library development impact fees imposed on
residential development and desires to amend the Fiscal Year 2025 Municipal Fee
Schedule accordingly.
SECTION 2. The Council of the City of Palo Alto amends the Fiscal Year 2023 Municipal
Fee Schedule by adopting the new fee for on-demand transit as set forth in Exhibit “A” and
incorporated here by reference.
SECTION 3. The Council finds that this ordinance is not a “project” under CEQA
because it has no potential for resulting in either a direct or reasonably foreseeable indirect
change in the environment.
//
//
//
Item 3
Attachment B - Impact
Fee Conversion Ordinance
Item 3: Staff Report Pg. 31 Packet Pg. 41 of 302
***NOT YET APPROVED***
2
0160153_kb2_20240829_ay
SECTION 4. This ordinance shall be effective upon adoption as an amendment to the
City’s Fiscal Year 2025 budget.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
____________________________
City Clerk
APPROVED AS TO FORM:
____________________________
Assistant City Attorney
___________________________
Mayor
APPROVED:
___________________________
City Manager
___________________________
Director of Planning and
Development Services
Item 3
Attachment B - Impact
Fee Conversion Ordinance
Item 3: Staff Report Pg. 32 Packet Pg. 42 of 302
***NOT YET APPROVED***
3
0160153_kb2_20240829_ay
Attachment A
Planning and Development Services
Impact and In-Lieu Fees
Development Impact Fees - Residential
Single Family Multi-Family
Community Center Impact Fee
Note: ADUs under 750 sf exempt.
$1.45 per sq. ft. $3.44 per sq. ft.
Library Impact Fee
Note: ADUs under 750 sf exempt. $0.87 per sq. ft. $2.05 per sq. ft.
Park Impact Fee
Note: ADUs under 750 sf exempt. $18.78 per sq. ft. $44.50 per sq. ft.
Item 3
Attachment B - Impact
Fee Conversion Ordinance
Item 3: Staff Report Pg. 33 Packet Pg. 43 of 302
City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Utilities
Meeting Date: September 23, 2024
Staff Report:2406-3193
TITLE
Approval of Four (4) Professional Services Contracts for Reliability and Resiliency On-Call
Services for a Period of Up to 5 Years to Support the Implementation of Palo Alto’s Reliability
and Resiliency Strategic Plan as Needed: 1) Contract Number C25189412A with Buro Happold in
an Amount Not to Exceed $450,000; and 2) C25189412B with EcoMotion, C25189412C with
Energeia, and C25189412D with Energy and Environmental Economics, Inc. (E3), in an Amount
Not to Exceed $250,000 (Each); CEQA Status – Not a Project.
RECOMMENDATION
Staff recommends that City Council approve and authorize the City Manager or their designee
to execute 4 Professional Services Contracts to support the implementation of Palo Alto’s
Reliability and Resiliency Strategic Plan (RRSP) with the following companies for a duration of
up to five years:
•Contract # C25189412A with Buro Happold for an Amount Not-to-Exceed $450,000;
•Contract # C25189412B with EcoMotion for an Amount Not-to-Exceed $250,000;
•Contract # C25189412C with Energeia for an Amount Not-to-Exceed $250,000;
•Contract # C25189412D with Energy and Environmental Inc (E3) for an Amount Not-to-
Exceed $250,000;
EXECUTIVE SUMMARY
Staff recommends the approval of 4 Professional Service Contracts. Companies retained under
these contracts will support the implementation of Reliability and Resiliency Strategic Plan
(RRSP) which was approved by the City Council on April 15, 2024.
These contracts are on-call agreements that allow the City to contract for work on specific
projects on an as-needed basis. The contract dollar limits above represent the total not-to-exceed
cost of work that can be done with any individual contractor, but staff does not anticipate using
the full amount for each contract.
Item 4
Item 4 Staff Report
Item 4: Staff Report Pg. 1 Packet Pg. 44 of 302
BACKGROUND
The City Council approved the Reliability and Resiliency Strategic Plan (RRSP) on April 15, 2024
(2401-2496)1. The RRSP is intended to address questions the community has had about the
electric system’s:
•Reliability: how frequently the system experiences outages,
•Modernization: how the system will be upgraded to integrate and effectively utilize new
and existing flexible technologies like solar with batteries or vehicle to grid technology,
•Capacity: the capacity of the system to handle electrification, and
•Resiliency: the system’s ability to minimize the impacts of a major event, recover quickly,
and the utility’s role in helping individual customers maintain service during outages.
ANALYSIS
The RRSP includes six strategies, as follows:
•Strategy 1: Replace and modernize electric distribution infrastructure, which includes:
o the grid modernization project
o the second transmission line project
o the Foothills undergrounding project
•Strategy 2: Implement operational practices to improve reliability and manage outages
effectively
•Strategy 3: Integrate and ease adoption of flexible and efficient technologies and
strategies
•Strategy 4: Evaluate the benefits of flexible and resiliency technologies and efficient
electrification strategies to the utility and community
•Strategy 5: Evaluate the resource needs to promote the adoption of various flexible
demand reduction and resiliency solutions and efficient electrification strategies.
•Strategy 6: Implement any utility-driven programs identified in Strategy 5 that are
chosen by Council.
The four companies selected have the expertise to assist with the tasks required to implement
the RRSP, particularly as it relates to Strategies 3, 4, 5 and 6.
Solicitation Process
The City published the Request for Proposals (RFP) for the Funding Study on the City’s
eProcurement platform, on March 6, 2024. The City received six responsive Proposals from
Buro Happold Consulting Engineers, EcoMotion, Energeia USA, Energy Environmental
Economics (E3), HGA, and Smith Group.
1 Agenda Item #4: https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13591
Item 4
Item 4 Staff Report
Item 4: Staff Report Pg. 2 Packet Pg. 45 of 302
Table 1. Summary of RFP Process
RFP Name/Number Consulting Services to Scope Projects to
Enhance Resiliency RFP No. 189412
RFP Issued March 6, 2024
Proposals Due April 9, 2024
# of Firms Notified 3017
Total Days to Respond to RFP 34
# of Proposals Received 6
Non-responsive bidders/ Responsive bidders 0 / 6
Public Link to Solicitation
https://procurement.op
engov.com/portal/palo-a
lto-ca/projects/83948
Proposals Price Range – Retainer Rates Hourly rate ranging from ~$202 to ~$337
An evaluation committee comprised of three Resource Management Division staff reviewed the
proposals and conducted interviews with the top four scoring firms. The committee reviewed
the firm’s qualifications and submittals in response to the criteria outlined in the RFP, including
work quality, the firm’s experience and effectiveness, quality and completeness of the
proposal, prior performance, the proposer’s financial stability and ability to provide services.
The committee also evaluated each firm’s proposed strategy and approach to supporting the
City in these service areas.
Staff recommends contracting with four of the companies on a task order basis to undertake
projects as needed. The four companies were: Buro Happold Consulting Engineers, EcoMotion,
Energeia USA, and Energy Environmental Economics (E3). The four firms provided competitive
proposals with a cross section of expertise needed to implement the RRSP in the coming years.
The general type of services under this agreement would be as follows:
•Valuing the benefits of flexible and distributed technologies like rooftop solar PV,
battery energy storage, vehicle to grid, efficient electrification, and other strategies in
reducing utility electric supply and distribution system cost and in enhancing customer
resiliency.
•Identifying ways to utilize efficient electrification technologies such as low powered EV
chargers, circuit pausers and circuit sharing, smart electrical panels, and whole home
back-up switches to lower electrical system upgrade costs of homes.
•Quantifying the value of resiliency for residents and non-residents
•Analyzing the resiliency strategies currently available to residents, such as backup
generators, solar and energy storage, and emergency preparation, and prospective
strategies such as vehicle to home technology
•Helping to develop a list of potential resiliency programs and projects the City and its
electric utility could take to enhancing electric resiliency for the community, developing
Item 4
Item 4 Staff Report
Item 4: Staff Report Pg. 3 Packet Pg. 46 of 302
estimates of staff time and budgets needed to evaluate each approach in more depth,
and developing preliminary cost and value estimates of implementation of each
approach where feasible.
•Evaluating equitable or community-based approaches to the above programs focused
on low-income residents, critical facilities, or emergency facilities.
•Evaluating microgrid strategies for the City, its electric utility, and utility customers.
•Other evaluations of home and business energy technologies.
•Identifying ways to communicate the benefit and to encourage the utilization of
efficient electrification technologies such as low powered EV chargers, circuit pausers
and circuit sharing, smart electrical panels, and whole home back-up switches to lower
electrical system upgrade costs of homes.
Work under these contracts will be done on a task order basis, meaning that no work will be
authorized by entering into the agreements. Companies are not guaranteed work under these
agreements and will only be compensated for work authorized via staff’s execution of task
orders for specific projects, on an as-needed basis. The scope, budget, and final deliverables for
each project under the agreements will be agreed upon by the consultant and City staff before
each task begins.
Expected expenditures for Buro Happold are larger in Year 1, compared to the other three
companies, because they have been selected to lead Phase I of the analysis to value flexible
distributed technologies and develop a list of potential customer resiliency programs. Buro
Happold is being engaged to do analysis related to Strategies 3, 4, and 5 of the RRSP. That work
encompasses some cost/benefit analysis, barrier identification, and program design related to
certain energy technologies. All bidders wrote proposals on a set of tasks related to Strategies
3, 4, and 5 as part of the RFP process, and Buro Happold’s proposal was selected due to the
highly relevant experience of them and their subcontractor as well as the quality of their
proposal and their competitive pricing. When the City establishes a master agreement that
from an RFP that includes specific work as well as additional, unspecified future work, normally
the scope for that work would be included in the master agreement. But in this case, staff
expects to seek Utilities Advisory Commission (UAC) feedback on the scope of work and
recently discussed with the commission at their September 4 meeting. Staff chose to specify
this feedback and work in the first task order instead of delaying the contract drafting and
approval process.
For any additional task orders not specified in the RFP staff plans to seek quotes from all
companies before choosing and signing. Variables to be expected in review include cost,
timing/availability, and expertise. All task orders will be authorized by the Utilities Director.
POLICY IMPLICATIONS
Item 4
Item 4 Staff Report
Item 4: Staff Report Pg. 4 Packet Pg. 47 of 302
The services involved will help implement the RRSP which was approved by the City Council in
April 2024 and is envisaged by the City’s S/CAP Implementation Plan, a Council priority.
FISCAL/RESOURCE IMPACT
Funding for the first year of the services involved is available in the FY 2025 City Adopted
Budget. The cost of the initial task order to Buro Happold focused on Strategies 3, 4, and 5 is
anticipated to be about $150,000 to $250,000 in the first year, but the expenditure need for
future years is uncertain. Subsequent year task orders will depend on Council approval of new
reliability and resiliency programs for design and implementation or requests for additional
analysis to support that policy decision. Microgrid project analyses in particular are costly, if
pursued.
The maximum combined annual expenditure under all four contracts is $400,000 per year for
the next three years, though staff does not anticipate expending the full amount.
STAKEHOLDER ENGAGEMENT
City Council and the Utilities Advisory Commission was engaged in the development of the
RRSP. The S/CAP Ad-hoc Working Group provided input on the draft consultant scope of work
at their meeting June 19th and the Utilities Advisory Commission provided input at their
September 4th meeting. Staff will continue to engage with the S/CAP Working Group and the
UAC as the study results become available.
ENVIRONMENTAL REVIEW
Approval of the attached agreements described in this staff report does not meet the definition
of a project under the California Environmental Quality Act (CEQA), pursuant to the California
Public Resources Code Section 21065, because it is not an activity that will cause a direct
physical change in the environment.
ATTACHMENTS
Attachment A: Agreement C25189412A Buro Happold
Attachment B: Agreement C25189412B EcoMotion
Attachment C: Agreement C25189412C Energeia
Attachment D: Agreement C25189412D E3
APPROVED BY:
Dean Batchelor, Director of Utilities
Staff: Jonathan Abendschein, Assistant Director of Climate Action
Item 4
Item 4 Staff Report
Item 4: Staff Report Pg. 5 Packet Pg. 48 of 302
Professional Services Rev. Jan 29, 2024 Page 1 of 21
CITY OF PALO ALTO CONTRACT NO. C25189412A AGREEMENT FOR PROFESSIONAL SERVICES
BETWEEN THE CITY OF PALO ALTO AND BURO HAPPOLD CONSULTING ENGINEERS, INC. This Agreement for Professional Services (this “Agreement”) is entered into as of the 16th day of September, 2024 (the “Effective Date”), by and between the CITY OF PALO ALTO, a California
chartered municipal corporation (“CITY”), and BURO HAPPOLD CONSULTING ENGINEERS,
INC., a California corporation, located at 800 Wilshire Blvd., 16FL, Los Angeles, CA 90017 (“CONSULTANT”). The following recitals are a substantive portion of this Agreement and are fully incorporated herein
by this reference: RECITALS A. CITY intends to award a contract (the “Project”) and desires to engage a consultant to assist with undertaking analytical work, program design and development advisory services, technical
evaluations (both programmatic and possibly related to specific projects), and policy development
assignments in connection with the Project (the “Services”, as detailed more fully in Exhibit A). B. CONSULTANT represents that it, its employees and subconsultants, if any, possess the necessary professional expertise, qualifications, and capability, and all required licenses and/or
certifications to provide the Services.
C. CITY, in reliance on these representations, desires to engage CONSULTANT to provide the Services as more fully described in Exhibit A, entitled “SCOPE OF SERVICES”.
NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this
Agreement, the parties agree as follows: SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described
in Exhibit A in accordance with the terms and conditions contained in this Agreement. The
performance of all Services shall be to the reasonable satisfaction of CITY. Optional On-Call Provision (This provision only applies if checked and only applies to on-call agreements.)
CITY may elect to, but is not required to, authorize on-call Services up to the maximum compensation amount set forth in Section 4 (Not to Exceed Compensation). CONSULTANT shall provide on-call Services only by advanced, written authorization from CITY as detailed in this Section. On-call Services, if any, shall be authorized by
CITY, as needed, with a Task Order assigned and approved by CITY’s Project Manager,
as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A-1 entitled “PROFESSIONAL SERVICES TASK ORDER”. Each Task Order shall contain a specific scope of services, schedule of performance and
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maximum compensation amount, in accordance with the provisions of this Agreement. Compensation for on-call Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum.
To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter-signature by the CITY Project Manager), the fully executed Task Order shall become part of this Agreement. The cumulative total compensation due
to CONSULTANT for all Task Orders issued under this Agreement shall not exceed the
amount of compensation set forth in Section 4. CONSULTANT shall only be compensated for on-call Services performed under an authorized Task Order and only up to the maximum compensation amount set forth in Section 4. Performance of and payment for any on-call Services are subject to all requirements and restrictions in this Agreement.
SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through September 15, 2029 unless terminated earlier pursuant to Section 19 (Termination) of this Agreement.
SECTION 3. SCHEDULE OF PERFORMANCE. time is of the essence in the performance
of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit B, entitled “SCHEDULE OF PERFORMANCE”. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and
timely manner based upon the circumstances and direction communicated to the CONSULTANT.
CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to
CONSULTANT for performance of the Services shall be based on the compensation structure
detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed Four Hundred Forty Thousand Dollars ($440,000.00). CONSULTANT shall only be compensated for Services performed under an authorized Task Order and CITY may elect, but is not required, to authorize
work up to the maximum compensation amount set forth in Section 4. CONSULTANT
acknowledges and agrees that CONSULTANT is not guaranteed or assured of any specific quantity of Services to be authorized under this Agreement. The hourly schedule of rates, if applicable, is set out in Exhibit C-1, entitled “SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would result in a total exceeding the maximum
compensation set forth in this Section 4 shall be at no cost to the CITY.
Optional Additional Services Provision (This provision applies only if checked and a not-to-exceed compensation amount for Additional Services is allocated below under this Section 4.)
In addition to the not-to-exceed compensation specified above, CITY has set aside the not-to-exceed compensation amount of Ten Thousand Dollars ($10,000.00) for the performance of Additional Services (as defined below). The total compensation for
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performance of the Services, Additional Services and any reimbursable expenses specified in Exhibit C, shall not exceed Four Hundred Fifty Thousand Dollars ($450,000.00), as detailed in Exhibit C.
“Additional Services” means any work that is determined by CITY to be necessary for the
proper completion of the Project, but which is not included within the Scope of Services described at Exhibit A. CITY may elect to, but is not required to, authorize Additional Services up to the maximum amount of compensation set forth for Additional Services in this Section 4. CONSULTANT shall provide Additional Services only by advanced,
written authorization from CITY as detailed in this Section. Additional Services, if any,
shall be authorized by CITY with a Task Order assigned and authorized by CITY’s Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A-1, entitled “PROFESSIONAL SERVICES TASK ORDER”. Each Task Order shall contain a specific scope of services, schedule of
performance and maximum compensation amount, in accordance with the provisions of
this Agreement. Compensation for Additional Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum.
To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s
Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter-signature by the CITY Project Manager), the fully executed Task Order shall become part of this Agreement. The cumulative total compensation to CONSULTANT for all Task Orders authorized under this Agreement shall not exceed the
amount of compensation set forth for Additional Services in this Section 4.
CONSULTANT shall only be compensated for Additional Services performed under an authorized Task Order and only up to the maximum amount of compensation set forth for Additional Services in this Section 4. Performance of and payment for any Additional Services are subject to all requirements and restrictions in this Agreement.
SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the Services performed and the applicable charges (including, if applicable, an identification of personnel who performed the Services, hours worked, hourly rates, and reimbursable expenses), based upon Exhibit C or, as applicable, CONSULTANT’s schedule
of rates set forth in Exhibit C-1. If applicable, the invoice shall also describe the percentage of
completion of each task. The information in CONSULTANT’s invoices shall be subject to verification by CITY. CONSULTANT shall send all invoices to CITY’s Project Manager at the address specified in Section 13 (Project Management) below. CITY will generally process and pay invoices within thirty (30) days of receipt of an acceptable invoice.
SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it, its employees and subcontractors, if any, possess the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have
sufficient skill and experience to perform the Services assigned to them. CONSULTANT
represents that it, its employees and subcontractors, if any, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All Services to be furnished by CONSULTANT
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under this Agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances.
SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of
and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement, as amended from time to time. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in
the performance of the Services.
SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs, including, but not limited to, increases in the cost of Services, arising from or caused by CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such
errors and omissions, any change order markup costs, or costs arising from delay caused by the
errors and omissions or unreasonable delay in correcting the errors and omissions. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of
design submittal. If the total estimated construction cost at any submittal exceeds the CITY’s
stated construction budget by ten percent (10%) or more, CONSULTANT shall make recommendations to CITY for aligning the Project design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY.
SECTION 10. INDEPENDENT CONTRACTOR. CONSULTANT acknowledges and agrees that CONSULTANT and any agent or employee of CONSULTANT will act as and shall be deemed at all times to be an independent contractor and shall be wholly responsible for the manner in which CONSULTANT performs the Services requested by CITY under this Agreement.
CONSULTANT and any agent or employee of CONSULTANT will not have employee status
with CITY, nor be entitled to participate in any plans, arrangements, or distributions by CITY pertaining to or in connection with any retirement, health or other benefits that CITY may offer its employees. CONSULTANT will be responsible for all obligations and payments, whether imposed by federal, state or local law, including, but not limited to, FICA, income tax
withholdings, workers’ compensation, unemployment compensation, insurance, and other similar
responsibilities related to CONSULTANT’s performance of the Services, or any agent or employee of CONSULTANT providing same. Nothing in this Agreement shall be construed as creating an employment or agency relationship between CITY and CONSULTANT or any agent or employee of CONSULTANT. Any terms in this Agreement referring to direction from CITY
shall be construed as providing for direction as to policy and the result of CONSULTANT’s
provision of the Services only, and not as to the means by which such a result is obtained. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign
or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s
obligations hereunder without the prior written approval of the City Manager. Any purported assignment made without the prior written approval of the City Manager will be void and without effect. Subject to the foregoing, the covenants, terms, conditions and provisions of this Agreement
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will apply to, and will bind, the heirs, successors, executors, administrators and assignees of the parties. SECTION 12. SUBCONTRACTING.
Option A: No Subcontractor: CONSULTANT shall not subcontract any portion of the Services to be performed under this Agreement without the prior written authorization of the City Manager or designee. In the event CONSULTANT does subcontract any portion of the work to be performed under this Agreement, CONSULTANT shall be fully responsible for all acts and
omissions of subcontractors.
Option B: Subcontracts Authorized: Notwithstanding Section 11 (Assignment) above, CITY agrees that subcontractors may be used to complete the Services. The subcontractors authorized by CITY to perform work on this Project are:
Alternative Energy Systems Consulting, Inc.
CONSULTANT shall be responsible for directing the work of any subcontractors and for any compensation due to subcontractors. CITY assumes no responsibility whatsoever concerning compensation of subcontractors. CONSULTANT shall be fully responsible to CITY for all acts
and omissions of subcontractors. CONSULTANT shall change or add subcontractors only with
the prior written approval of the City Manager or designee. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Chris Ceravolo, 800 Wilshire Blvd., 16FL, Los Angeles, CA 90017, Telephone: (212)616-0327, Email:
chris.ceravolo@burohappold.com as the CONSULTANT’s Project Manager to have supervisory
responsibility for the performance, progress, and execution of the Services and represent CONSULTANT during the day-to-day performance of the Services. If circumstances cause the substitution of the CONSULTANT’s Project Manager or any other of CONSULTANT’s key personnel for any reason, the appointment of a substitute Project Manager and the assignment of
any key new or replacement personnel will be subject to the prior written approval of the CITY’s
Project Manager. CONSULTANT, at CITY’s request, shall promptly remove CONSULTANT personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Services or a threat to the safety of persons or property.
CITY’s Project Manager is Shiva Swaminathan, Utilities Department, Utilities Resource Management Division, 250 Hamilton Ave., Palo Alto, CA, 94301, Telephone: (650) 329-2465, Email: Shiva.Swaminathan@CityofPaloAlto.org. CITY’s Project Manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the
Services. CITY may designate an alternate Project Manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. All work product, including without limitation, all writings, drawings, studies, sketches, photographs, plans, reports, specifications, computations, models, recordings, data, documents, and other materials and copyright interests
developed under this Agreement, in any form or media, shall be and remain the exclusive property
of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work product pursuant to this Agreement are vested in CITY, and CONSULTANT hereby waives and relinquishes all claims to copyright or other intellectual
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property rights in favor of CITY. Neither CONSULTANT nor its subcontractors, if any, shall make any of such work product available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the
Scope of Services.
SECTION 15. AUDITS. CONSULTANT agrees to permit CITY and its authorized representatives to audit, at any reasonable time during the term of this Agreement and for four (4) years from the date of final payment, CONSULTANT’s records pertaining to matters covered by
this Agreement, including without limitation records demonstrating compliance with the
requirements of Section 10 (Independent Contractor). CONSULTANT further agrees to maintain and retain accurate books and records in accordance with generally accepted accounting principles for at least four (4) years after the expiration or earlier termination of this Agreement or the completion of any audit hereunder, whichever is later.
SECTION 16. INDEMNITY. 16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an
“Indemnified Party”) from and against any and all demands, claims, or liability of any nature,
including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorney’s fees, experts fees, court costs and disbursements (“Claims”) resulting from, arising out of or in any manner related to performance or nonperformance by CONSULTANT, its officers, employees, agents or contractors under this
Agreement, regardless of whether or not it is caused in part by an Indemnified Party.
16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from a Claim arising from the active negligence or willful misconduct of an Indemnified Party that is not contributed to by any act of,
or by any omission to perform a duty imposed by law or agreement by, CONSULTANT, its
officers, employees, agents or contractors under this Agreement. 16.3. The acceptance of CONSULTANT’s Services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive
the expiration or early termination of this Agreement.
SECTION 17. WAIVERS. No waiver of a condition or nonperformance of an obligation under this Agreement is effective unless it is in writing in accordance with Section 29.4 of this Agreement. No delay or failure to require performance of any provision of this Agreement shall
constitute a waiver of that provision as to that or any other instance. Any waiver granted shall
apply solely to the specific instance expressly stated. No single or partial exercise of any right or remedy will preclude any other or further exercise of any right or remedy. SECTION 18. INSURANCE.
18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit D, entitled “INSURANCE REQUIREMENTS”. CONSULTANT and its contractors, if any, shall
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obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through
carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or
authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above.
18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except
after filing with the Purchasing Manager thirty (30) days’ prior written notice of the cancellation
or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates
evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term
of this Agreement. 18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT’s liability hereunder nor to fulfill the indemnification
provisions of this Agreement. Notwithstanding the policy or policies of insurance,
CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired.
SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES.
19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. If CONSULTANT fails to perform any of its material
obligations under this Agreement, in addition to all other remedies provided under this Agreement
or at law, the City Manager may terminate this Agreement sooner upon written notice of termination. Upon receipt of any notice of suspension or termination, CONSULTANT will discontinue its performance of the Services on the effective date in the notice of suspension or termination.
19.2. In event of suspension or termination, CONSULTANT will deliver to the City Manager on or before the effective date in the notice of suspension or termination, any and all work product, as detailed in Section 14 (Ownership of Materials), whether or not completed, prepared by CONSULTANT or its contractors, if any, in the performance of this Agreement. Such
work product is the property of CITY, as detailed in Section 14 (Ownership of Materials).
19.3. In event of suspension or termination, CONSULTANT will be paid for the Services rendered and work products delivered to CITY in accordance with the Scope of Services
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up to the effective date in the notice of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s Services provided in material conformity with this Agreement as such determination is made by the City
Manager acting in the reasonable exercise of his/her discretion. The following Sections will
survive any expiration or termination of this Agreement: 14, 15, 16, 17, 19.2, 19.3, 19.4, 20, 25, 27, 28, 29 and 30. 19.4. No payment, partial payment, acceptance, or partial acceptance by CITY
will operate as a waiver on the part of CITY of any of its rights under this Agreement, unless made
in accordance with Section 17 (Waivers). SECTION 20. NOTICES.
All notices hereunder will be given in writing and mailed, postage prepaid, by
certified mail, addressed as follows: To CITY: Office of the City Clerk City of Palo Alto
Post Office Box 10250
Palo Alto, CA 94303 With a copy to the Purchasing Manager
To CONSULTANT: Attention of the Project Manager at the address of
CONSULTANT recited on the first page of this Agreement. CONSULTANT shall provide written notice to CITY of any change of address.
SECTION 21. CONFLICT OF INTEREST.
21.1. In executing this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services.
21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subcontractors or other persons or parties having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance
with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the
State of California, as amended from time to time. CONSULTANT agrees to notify CITY if any conflict arises. 21.3. If the CONSULTANT meets the definition of a “Consultant” as defined by
the Regulations of the Fair Political Practices Commission, CONSULTANT will file the
appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act of 1974, as amended from time to time.
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SECTION 22. NONDISCRIMINATION; COMPLIANCE WITH ADA. 22.1. As set forth in Palo Alto Municipal Code Section 2.30.510, as amended from time to time, CONSULTANT certifies that in the performance of this Agreement, it shall not
discriminate in the employment of any person due to that person’s race, skin color, gender, gender
identity, age, religion, disability, national origin, ancestry, sexual orientation, pregnancy, genetic information or condition, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the
penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining
to nondiscrimination in employment. 22.2. CONSULTANT understands and agrees that pursuant to the Americans Disabilities Act (“ADA”), programs, services and other activities provided by a public entity to
the public, whether directly or through a contractor or subcontractor, are required to be accessible
to the disabled public. CONSULTANT will provide the Services specified in this Agreement in a manner that complies with the ADA and any other applicable federal, state and local disability rights laws and regulations, as amended from time to time. CONSULTANT will not discriminate against persons with disabilities in the provision of services, benefits or activities provided under
this Agreement. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally Preferred Purchasing policies which are available at CITY’s Purchasing Department, hereby
incorporated by reference and as amended from time to time. CONSULTANT shall comply with
waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero Waste best practices include, first, minimizing and reducing waste; second, reusing waste; and, third, recycling or composting waste. In particular, CONSULTANT shall comply with the following Zero Waste requirements:
(a) All printed materials provided by CONSULTANT to CITY generated from a
personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by CITY’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or
greater post-consumer material and printed with vegetable-based inks.
(b) Goods purchased by CONSULTANT on behalf of CITY shall be purchased in accordance with CITY’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Department’s office.
(c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no
additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE.
CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62
(Citywide Minimum Wage), as amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such
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employees no less than the minimum wage set forth in Palo Alto Municipal Code Section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code Section 4.62.060.
SECTION 25. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code, as amended from time to time. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal
year in the event that funds are only appropriated for a portion of the fiscal year and funds for this
Agreement are no longer available. This Section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC
WORKS CONTRACTS. 26.1. This Project is not subject to prevailing wages and related requirements. CONSULTANT is not required to pay prevailing wages and meet related requirements under the California Labor Code and California Code of Regulations in the
performance and implementation of the Project if the contract:
(1) is not a public works contract; (2) is for a public works construction project of $25,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j); or (3) is for a public works alteration, demolition, repair, or maintenance project of
$15,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and
1773.3(j). SECTION 27. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS”. For purposes of this Section 27, a “9204 Public Works Project” means the erection, construction,
alteration, repair, or improvement of any public structure, building, road, or other public
improvement of any kind. (Cal. Pub. Cont. Code § 9204.) Per California Public Contract Code Section 9204, for Public Works Projects, certain claims procedures shall apply, as set forth in Exhibit F, entitled “Claims for Public Contract Code Section 9204 Public Works Projects”.
This Project is not a 9204 Public Works Project.
SECTION 28. CONFIDENTIAL INFORMATION. 28.1. In the performance of this Agreement, CONSULTANT may have access to
CITY’s Confidential Information (defined below). CONSULTANT will hold Confidential
Information in strict confidence, not disclose it to any third party, and will use it only for the performance of its obligations to CITY under this Agreement and for no other purpose. CONSULTANT will maintain reasonable and appropriate administrative, technical and physical safeguards to ensure the security, confidentiality and integrity of the Confidential Information.
Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to its
employees, agents and subcontractors, if any, to the extent they have a need to know in order to perform CONSULTANT’s obligations to CITY under this Agreement and for no other purpose, provided that the CONSULTANT informs them of, and requires them to follow, the confidentiality
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and security obligations of this Agreement. 28.2. “Confidential Information” means all data, information (including without limitation “Personal Information” about a California resident as defined in Civil Code Section
1798 et seq., as amended from time to time) and materials, in any form or media, tangible or
intangible, provided or otherwise made available to CONSULTANT by CITY, directly or indirectly, pursuant to this Agreement. Confidential Information excludes information that CONSULTANT can show by appropriate documentation: (i) was publicly known at the time it was provided or has subsequently become publicly known other than by a breach of this
Agreement; (ii) was rightfully in CONSULTANT’s possession free of any obligation of
confidence prior to receipt of Confidential Information; (iii) is rightfully obtained by CONSULTANT from a third party without breach of any confidentiality obligation; (iv) is independently developed by employees of CONSULTANT without any use of or access to the Confidential Information; or (v) CONSULTANT has written consent to disclose signed by an
authorized representative of CITY.
28.3. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to the extent required by order of a court of competent jurisdiction or governmental body, provided that CONSULTANT will notify CITY in writing of such order immediately upon
receipt and prior to any such disclosure (unless CONSULTANT is prohibited by law from doing
so), to give CITY an opportunity to oppose or otherwise respond to such order. 28.4. CONSULTANT will notify City promptly upon learning of any breach in the security of its systems or unauthorized disclosure of, or access to, Confidential Information in
its possession or control, and if such Confidential Information consists of Personal Information,
CONSULTANT will provide information to CITY sufficient to meet the notice requirements of Civil Code Section 1798 et seq., as applicable, as amended from time to time. 28.5. Prior to or upon termination or expiration of this Agreement,
CONSULTANT will honor any request from the CITY to return or securely destroy all copies of
Confidential Information. All Confidential Information is and will remain the property of the CITY and nothing contained in this Agreement grants or confers any rights to such Confidential Information on CONSULTANT.
28.6. If selected in Section 30 (Exhibits), this Agreement is also subject to the
terms and conditions of the Information Privacy Policy and Cybersecurity Terms and Conditions. SECTION 29. MISCELLANEOUS PROVISIONS.
29.1. This Agreement will be governed by California law, without regard to its
conflict of law provisions. 29.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara,
State of California.
29.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys’ fees expended in connection with that
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action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties.
29.4. This Agreement, including all exhibits, constitutes the entire and integrated
agreement between the parties with respect to the subject matter of this Agreement, and supersedes all prior agreements, negotiations, representations, statements and undertakings, either oral or written. This Agreement may be amended only by a written instrument, which is signed by the authorized representatives of the parties and approved as required under Palo Alto Municipal
Code, as amended from time to time.
29.5. If a court of competent jurisdiction finds or rules that any provision of this Agreement is void or unenforceable, the unaffected provisions of this Agreement will remain in full force and effect.
29.6. In the event of a conflict between the terms of this Agreement and the exhibits hereto (per Section 30) or CONSULTANT’s proposal (if any), the Agreement shall control. In the event of a conflict between the exhibits hereto and CONSULTANT’s proposal (if any), the exhibits shall control.
29.7. The provisions of all checked boxes in this Agreement shall apply to this Agreement; the provisions of any unchecked boxes shall not apply to this Agreement. 29.8. All section headings contained in this Agreement are for convenience and
reference only and are not intended to define or limit the scope of any provision of this Agreement.
29.9. This Agreement may be signed in multiple counterparts, which, when executed by the authorized representatives of the parties, shall together constitute a single binding agreement.
SECTION 30. EXHIBITS. Each of the following exhibits, if the check box for such exhibit is selected below, is hereby attached and incorporated into this Agreement by reference as though fully set forth herein:
EXHIBIT A: SCOPE OF SERVICES
EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER EXHIBIT B: SCHEDULE OF PERFORMANCE EXHIBIT C: COMPENSATION EXHIBIT C-1: SCHEDULE OF RATES
EXHIBIT D: INSURANCE REQUIREMENTS
THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS ARE ATTACHED.
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CONTRACT NO. C25189412A SIGNATURE PAGE IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement as of the date first above written.
CITY OF PALO ALTO
____________________________ City Manager
APPROVED AS TO FORM: __________________________
City Attorney or designee
BURO HAPPOLD CONSULTING ENGINEERS, INC.
By:_________________________________
Name:_______________________________ Title: _______________________________
By:_________________________________ Name:_______________________________
Title: _______________________________
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Principal
Denzil Gallagher
Joyce Engebretsen
Corporate Secretary
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EXHIBIT A SCOPE OF SERVICES CONSULTANT shall provide the Services detailed in this Exhibit A, entitled “SCOPE OF
SERVICES”. Notwithstanding any provision herein to the contrary, CONSULTANT’s duties
and services described in this Scope of Services shall not include preparing or assisting CITY with any portion of CITY’s preparation of a request for proposals, request for qualifications, or any other solicitation regarding a subsequent or additional contract with CITY. CITY shall at all times retain responsibility for public contracting, including with respect to any subsequent phase
of this project. CONSULTANT’s participation in the planning, discussions, or drawing of
project plans or specifications shall be limited to conceptual, preliminary, or initial plans or specifications. CONSULTANT shall cooperate with CITY to ensure that all bidders for a subsequent contract on any subsequent phase of this project have access to the same information, including all conceptual, preliminary, or initial plans or specifications prepared by
CONSULTANT pursuant to this Scope of Services.
Services provided under this Agreement will be done on a Task Order basis, and no specific work is authorized by entering into this Agreement without the authorization of Task Orders for specific projects. The scope, budget, and final deliverables for each project under this Agreement
will be agreed upon by the CONSULTANT and CITY before each task begins. CONSULTANT
shall only be compensated for Services performed under an authorized Task Order and CITY may elect, but is not required, to authorize work up to the maximum compensation amount set forth in Section 4.
The general type of projects under this Agreement may include, but are not limited to:
1. Valuing the benefits of flexible and distributed technologies like rooftop solar PV, battery energy storage, vehicle to grid, efficient electrification, and other strategies in reducing utility electric supply and distribution system costs and in enhancing customer resiliency.
2. Identification of ways to utilize efficient electrification technologies such as low powered
EV chargers, circuit pausers and circuit sharing, smart electrical panels, and whole home back-up switches to lower electrical system upgrade costs of homes. 3. Quantifying the value of resiliency for residents and non-residents. 4. Analyzing the resiliency strategies currently available to residents, such as backup
generators, solar and energy storage, and emergency preparation; and analyzing
prospective strategies such as vehicle to home technology 5. Developing a list of potential resiliency programs and projects the City and its electric utility could take to enhance electric resiliency for the community, developing estimates of staff time and budgets needed to evaluate each approach in more depth, and
developing preliminary cost and value estimates of implementation of each approach
where feasible. 6. Evaluating equitable or community-based approaches to the above program (#5 above) focused on low-income residents, critical facilities, or emergency facilities. 7. Evaluating microgrid strategies for the City, its electric utility, and utility customers.
8. Other Distributed Energy Resources (DER) related evaluation.
9. Ways to communicate the benefit and to encourage the utilization efficient electrification technologies such as low powered EV chargers, circuit pausers and circuit sharing, smart
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electrical panels, and whole home back-up switch to lower electrical system upgrade costs of homes.
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EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER
CONSULTANT shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into this Task Order by this reference. CONSULTANT shall furnish the necessary facilities, professional, technical
and supporting personnel required by this Task Order as described below.
CONTRACT NO. OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE) 1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE):
1B. TASK ORDER NO.: 2. CONSULTANT NAME:
3. PERIOD OF PERFORMANCE: START: COMPLETION: 4 TOTAL TASK ORDER PRICE: $__________________ BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $_______________ 5. BUDGET CODE_______________
COST CENTER________________ COST ELEMENT______________
WBS/CIP__________ PHASE__________ 6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:_____________________________________ 7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A)
MUST INCLUDE:
SERVICES AND DELIVERABLES TO BE PROVIDED
SCHEDULE OF PERFORMANCE
MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)
REIMBURSABLE EXPENSES, if any (with “not to exceed” amount) 8. ATTACHMENTS: A: Task Order Scope of Services B (if any): _____________________________
I hereby authorize the performance of the work described in this Task Order. APPROVED: CITY OF PALO ALTO BY:____________________________________
Name __________________________________ Title___________________________________
Date ___________________________________
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:____________________________________
Name __________________________________ Title___________________________________
Date ___________________________________
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EXHIBIT B SCHEDULE OF PERFORMANCE The schedule of performance shall be as provided in the approved Task Order, as detailed in
Exhibit A (Scope of Services) in the case of On-Call Services, or as detailed in Section 4 in the
case of Additional Services, provided in all cases that the schedule of performance shall fall within the term as provided in Section 2 (Term) of this Agreement.
Optional Schedule of Performance Provision for On-Call or Additional Services Agreements.
(This provision only applies if checked and only applies to on-call agreements per Section 1 or agreements with Additional Services per Section 4.)
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EXHIBIT C COMPENSATION
CITY agrees to compensate CONSULTANT for the Services performed in accordance with the terms and conditions of this Agreement, including Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4 of the Agreement), based on the hourly rate schedule attached as Exhibit C-1.
The compensation to be paid to CONSULTANT under this Agreement for all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), shall not exceed the amount(s) stated in Section 4 of this Agreement. CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4),
within this/these amount(s). Any work performed or expenses incurred for which payment would
result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY. REIMBURSABLE EXPENSES
CONSULTANT’S ordinary business expenses, such as administrative, overhead, administrative support time/overtime, information systems, software and hardware, photocopying, telecommunications (telephone, internet), in-house printing, insurance and other ordinary business expenses, are included within the scope of payment for Services and
are not reimbursable expenses hereunder.
Reimbursable expenses, if any are specified as reimbursable under this section, will be reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be reimbursed are: NONE up to the not-to-exceed amount of: $0.00.
A. Travel outside the San Francisco Bay Area, including transportation and meals, if specified as reimbursable, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses.
B. Long distance telephone service charges, cellular phone service charges, facsimile
transmission and postage charges, if specified as reimbursable, will be reimbursed at actual cost. All requests for reimbursement of expenses, if any are specified as reimbursable under this
section, shall be accompanied by appropriate backup documentation and information.
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EXHIBIT C-1 SCHEDULE OF RATES
CONSULTANT’s schedule of rates is as follows:
BURO HAPPOLD Staffing Tier Hourly Rates ($/hour) Typical Effort Partner 400 3% Principal 330 9% Associate Principal 285 15% Associate 220 8% Senior Engineer 185 7% Technical Designer / Engineer 2 165 5% Technical Designer / Engineer 1 145 3% AESC Staffing Tier Hourly Rates ($/hour) Typical Effort Director / Prinicpal Engineer 275 3% Engineering Manager 240 8% Lead Engineer 235 12% Senior Engineer 208 7% Staff Engineer 189 9% Engineer 165 8% Associate Engineer 135 3%
Melded Average for Buro Happold & AESC Average Hourly Rates ($/hour) 237
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EXHIBIT D INSURANCE REQUIREMENTS
CONSULTANTS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS AS SPECIFIED HEREIN.
REQUIRED TYPE OF COVERAGE REQUIREMENT
MINIMUM LIMITS
EACH OCCURRENCE AGGREGATE
YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY STATUTORY STATUTORY
YES
GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY
BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED.
$1,000,000 $1,000,000 $1,000,000
$1,000,000 $1,000,000 $1,000,000
YES
AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED
BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED
$1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
$1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
YES
PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE
ALL DAMAGES $1,000,000
YES
THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONSULTANT, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONSULTANT AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES.
I. INSURANCE COVERAGE MUST INCLUDE: A. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONSULTANT’S AGREEMENT TO INDEMNIFY CITY. II. THE CONSULTANT MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING EMAIL: PURCHASINGSUPPORT@CITYOFPALOALTO.ORG III. ENDORSEMENT PROVISIONS WITH RESPECT TO THE INSURANCE AFFORDED TO ADDITIONAL INSUREDS: A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS.
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B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. EVIDENCE OF INSURANCE AND OTHER RELATED NOTICES ARE REQUIRED TO BE FILED WITH THE CITY OF PALO ALTO SENT TO THE FOLLOWING EMAIL: PURCHASINGSUPPORT@CITYOFPALOALTO.ORG
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CITY OF PALO ALTO CONTRACT NO. C25189412B AGREEMENT FOR PROFESSIONAL SERVICES
BETWEEN THE CITY OF PALO ALTO AND ECOMOTION INC. This Agreement for Professional Services (this “Agreement”) is entered into as of the 16th day of September, 2024 (the “Effective Date”), by and between the CITY OF PALO ALTO, a California
chartered municipal corporation (“CITY”), and ECOMOTION, INC., a California corporation,
located at 216 West Kenneth Road, Glendale, CA 91202 (“CONSULTANT”). The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this reference:
RECITALS
A. CITY intends to award a contract (the “Project”) and desires to engage a consultant to assist with undertaking analytical work, program design and development advisory services, technical evaluations (both programmatic and possibly related to specific projects), and policy development
assignments in connection with the Project (the “Services”, as detailed more fully in Exhibit A).
B. CONSULTANT represents that it, its employees and subconsultants, if any, possess the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services.
C. CITY, in reliance on these representations, desires to engage CONSULTANT to provide the Services as more fully described in Exhibit A, entitled “SCOPE OF SERVICES”. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this
Agreement, the parties agree as follows:
SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit A in accordance with the terms and conditions contained in this Agreement. The
performance of all Services shall be to the reasonable satisfaction of CITY.
Optional On-Call Provision (This provision only applies if checked and only applies to on-call agreements.)
CITY may elect to, but is not required to, authorize on-call Services up to the maximum
compensation amount set forth in Section 4 (Not to Exceed Compensation). CONSULTANT shall provide on-call Services only by advanced, written authorization from CITY as detailed in this Section. On-call Services, if any, shall be authorized by CITY, as needed, with a Task Order assigned and approved by CITY’s Project Manager,
as identified in Section 13 (Project Management). Each Task Order shall be in substantially
the same form as Exhibit A-1 entitled “PROFESSIONAL SERVICES TASK ORDER”. Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement.
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Compensation for on-call Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum.
To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s
Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter-signature by the CITY Project Manager), the fully executed Task Order shall become part of this Agreement. The cumulative total compensation due to CONSULTANT for all Task Orders issued under this Agreement shall not exceed the
amount of compensation set forth in Section 4. CONSULTANT shall only be compensated
for on-call Services performed under an authorized Task Order and only up to the maximum compensation amount set forth in Section 4. Performance of and payment for any on-call Services are subject to all requirements and restrictions in this Agreement.
SECTION 2. TERM.
The term of this Agreement shall be from the date of its full execution through September 15, 2029 unless terminated earlier pursuant to Section 19 (Termination) of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance
of Services under this Agreement. CONSULTANT shall complete the Services within the term of
this Agreement and in accordance with the schedule set forth in Exhibit B, entitled “SCHEDULE OF PERFORMANCE”. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT.
CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery
of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services shall be based on the compensation structure
detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable expenses
specified therein, and the maximum total compensation shall not exceed Two Hundred Forty Thousand Dollars ($240,000.00). CONSULTANT shall only be compensated for Services performed under an authorized Task Order and CITY may elect, but is not required, to authorize work up to the maximum compensation amount set forth in Section 4. CONSULTANT
acknowledges and agrees that CONSULTANT is not guaranteed or assured of any specific
quantity of Services to be authorized under this Agreement. The hourly schedule of rates, if applicable, is set out in Exhibit C-1, entitled “SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY.
Optional Additional Services Provision (This provision applies only if checked and a not-to-exceed compensation amount for Additional Services is allocated below under this Section 4.)
In addition to the not-to-exceed compensation specified above, CITY has set aside the not-
to-exceed compensation amount of Ten Thousand Dollars ($10,000.00) for the performance of Additional Services (as defined below). The total compensation for performance of the Services, Additional Services and any reimbursable expenses specified
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in Exhibit C, shall not exceed Two Hundred Fifty Thousand Dollars ($250,000.00), as detailed in Exhibit C. CONSULTANT shall only be compensated for Services performed under an authorized Task Order and CITY may elect, but is not required, to authorize work up to the maximum compensation amount set forth in Section 4. CONSULTANT
acknowledges and agrees that CONSULTANT is not guaranteed or assured of any specific
quantity of Services to be authorized under this Agreement. “Additional Services” means any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services
described at Exhibit A. CITY may elect to, but is not required to, authorize Additional
Services up to the maximum amount of compensation set forth for Additional Services in this Section 4. CONSULTANT shall provide Additional Services only by advanced, written authorization from CITY as detailed in this Section. Additional Services, if any, shall be authorized by CITY with a Task Order assigned and authorized by CITY’s Project
Manager, as identified in Section 13 (Project Management). Each Task Order shall be in
substantially the same form as Exhibit A-1, entitled “PROFESSIONAL SERVICES TASK ORDER”. Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement. Compensation for Additional Services shall be specified by CITY in the
Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit
C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum. To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s Project Manager within the time specified by the Project Manager, and upon authorization
by CITY (defined as counter-signature by the CITY Project Manager), the fully executed
Task Order shall become part of this Agreement. The cumulative total compensation to CONSULTANT for all Task Orders authorized under this Agreement shall not exceed the amount of compensation set forth for Additional Services in this Section 4. CONSULTANT shall only be compensated for Additional Services performed under an
authorized Task Order and only up to the maximum amount of compensation set forth for
Additional Services in this Section 4. Performance of and payment for any Additional Services are subject to all requirements and restrictions in this Agreement. SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly
invoices to the CITY describing the Services performed and the applicable charges (including, if
applicable, an identification of personnel who performed the Services, hours worked, hourly rates, and reimbursable expenses), based upon Exhibit C or, as applicable, CONSULTANT’s schedule of rates set forth in Exhibit C-1. If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT’s invoices shall be subject to
verification by CITY. CONSULTANT shall send all invoices to CITY’s Project Manager at the
address specified in Section 13 (Project Management) below. CITY will generally process and pay invoices within thirty (30) days of receipt of an acceptable invoice. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All Services shall be performed
by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it,
its employees and subcontractors, if any, possess the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT
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represents that it, its employees and subcontractors, if any, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All Services to be furnished by CONSULTANT under this Agreement shall meet the professional standard and quality that prevail among
professionals in the same discipline and of similar knowledge and skill engaged in related work
throughout California under the same or similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that
may affect in any manner the Project or the performance of the Services or those engaged to
perform Services under this Agreement, as amended from time to time. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services.
SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs,
including, but not limited to, increases in the cost of Services, arising from or caused by CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any change order markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions.
SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds the CITY’s stated construction budget by ten percent (10%) or more, CONSULTANT shall make
recommendations to CITY for aligning the Project design with the budget, incorporate CITY
approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. SECTION 10. INDEPENDENT CONTRACTOR. CONSULTANT acknowledges and agrees
that CONSULTANT and any agent or employee of CONSULTANT will act as and shall be
deemed at all times to be an independent contractor and shall be wholly responsible for the manner in which CONSULTANT performs the Services requested by CITY under this Agreement. CONSULTANT and any agent or employee of CONSULTANT will not have employee status with CITY, nor be entitled to participate in any plans, arrangements, or distributions by CITY
pertaining to or in connection with any retirement, health or other benefits that CITY may offer its
employees. CONSULTANT will be responsible for all obligations and payments, whether imposed by federal, state or local law, including, but not limited to, FICA, income tax withholdings, workers’ compensation, unemployment compensation, insurance, and other similar responsibilities related to CONSULTANT’s performance of the Services, or any agent or
employee of CONSULTANT providing same. Nothing in this Agreement shall be construed as
creating an employment or agency relationship between CITY and CONSULTANT or any agent or employee of CONSULTANT. Any terms in this Agreement referring to direction from CITY shall be construed as providing for direction as to policy and the result of CONSULTANT’s provision of the Services only, and not as to the means by which such a result is obtained.
SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s
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obligations hereunder without the prior written approval of the City Manager. Any purported assignment made without the prior written approval of the City Manager will be void and without effect. Subject to the foregoing, the covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators and assignees of the
parties.
SECTION 12. SUBCONTRACTING. Option A: No Subcontractor: CONSULTANT shall not subcontract any portion of the
Services to be performed under this Agreement without the prior written authorization of the City
Manager or designee. In the event CONSULTANT does subcontract any portion of the work to be performed under this Agreement, CONSULTANT shall be fully responsible for all acts and omissions of subcontractors.
Option B: Subcontracts Authorized: Notwithstanding Section 11 (Assignment) above, CITY
agrees that subcontractors may be used to complete the Services. The subcontractors authorized by CITY to perform work on this Project are: Point Energy Innovations, Verdant Associates, LLC
CONSULTANT shall be responsible for directing the work of any subcontractors and for any
compensation due to subcontractors. CITY assumes no responsibility whatsoever concerning compensation of subcontractors. CONSULTANT shall be fully responsible to CITY for all acts and omissions of subcontractors. CONSULTANT shall change or add subcontractors only with the prior written approval of the City Manager or designee.
SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Ted Flanigan, 216 West Kenneth Road. Glendale, CA 91202, Telephone: (949)292-7314, Email: tflanigan@ecomotion.us as the CONSULTANT’s Project Manager to have supervisory responsibility for the performance, progress, and execution of the Services and represent
CONSULTANT during the day-to-day performance of the Services. If circumstances cause the
substitution of the CONSULTANT’s Project Manager or any other of CONSULTANT’s key personnel for any reason, the appointment of a substitute Project Manager and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s Project Manager. CONSULTANT, at CITY’s request, shall promptly remove CONSULTANT
personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative,
or present a threat to the adequate or timely completion of the Services or a threat to the safety of persons or property. CITY’s Project Manager is Shiva Swaminathan, Utilities Department, Utilities Resource
Management Division, 250 Hamilton Ave., Palo Alto, CA, 94301, Telephone: (650) 329-2465,
Email: Shiva.Swaminathan@CityofPaloAlto.org. CITY’s Project Manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate Project Manager from time to time.
SECTION 14. OWNERSHIP OF MATERIALS. All work product, including without
limitation, all writings, drawings, studies, sketches, photographs, plans, reports, specifications, computations, models, recordings, data, documents, and other materials and copyright interests developed under this Agreement, in any form or media, shall be and remain the exclusive property
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of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work product pursuant to this Agreement are vested in CITY, and CONSULTANT hereby waives and relinquishes all claims to copyright or other intellectual property rights in favor of CITY. Neither CONSULTANT nor its subcontractors, if any, shall
make any of such work product available to any individual or organization without the prior written
approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the Scope of Services.
SECTION 15. AUDITS. CONSULTANT agrees to permit CITY and its authorized
representatives to audit, at any reasonable time during the term of this Agreement and for four (4) years from the date of final payment, CONSULTANT’s records pertaining to matters covered by this Agreement, including without limitation records demonstrating compliance with the requirements of Section 10 (Independent Contractor). CONSULTANT further agrees to maintain
and retain accurate books and records in accordance with generally accepted accounting principles
for at least four (4) years after the expiration or earlier termination of this Agreement or the completion of any audit hereunder, whichever is later. SECTION 16. INDEMNITY.
16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and
expenses of whatever nature including attorney’s fees, experts fees, court costs and disbursements
(“Claims”) resulting from, arising out of or in any manner related to performance or nonperformance by CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party.
16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to
require CONSULTANT to indemnify an Indemnified Party from a Claim arising from the active negligence or willful misconduct of an Indemnified Party that is not contributed to by any act of, or by any omission to perform a duty imposed by law or agreement by, CONSULTANT, its officers, employees, agents or contractors under this Agreement.
16.3. The acceptance of CONSULTANT’s Services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement.
SECTION 17. WAIVERS. No waiver of a condition or nonperformance of an obligation under
this Agreement is effective unless it is in writing in accordance with Section 29.4 of this Agreement. No delay or failure to require performance of any provision of this Agreement shall constitute a waiver of that provision as to that or any other instance. Any waiver granted shall apply solely to the specific instance expressly stated. No single or partial exercise of any right or
remedy will preclude any other or further exercise of any right or remedy.
SECTION 18. INSURANCE.
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18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit D, entitled “INSURANCE REQUIREMENTS”. CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or
automobile policy or policies.
18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of
CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in
full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY
concurrently with the execution of this Agreement. The certificates will be subject to the approval
of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days’ prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30)
days’ notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written
notice of the cancellation or modification within two (2) business days of the CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term of this Agreement.
18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT’s liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss
caused by or directly arising as a result of the Services performed under this Agreement, including
such damage, injury, or loss arising after the Agreement is terminated or the term has expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES.
19.1. The City Manager may suspend the performance of the Services, in whole
or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. If CONSULTANT fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided under this Agreement or at law, the City Manager may terminate this Agreement sooner upon written notice of
termination. Upon receipt of any notice of suspension or termination, CONSULTANT will
discontinue its performance of the Services on the effective date in the notice of suspension or termination. 19.2. In event of suspension or termination, CONSULTANT will deliver to the
City Manager on or before the effective date in the notice of suspension or termination, any and
all work product, as detailed in Section 14 (Ownership of Materials), whether or not completed, prepared by CONSULTANT or its contractors, if any, in the performance of this Agreement. Such work product is the property of CITY, as detailed in Section 14 (Ownership of Materials).
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19.3. In event of suspension or termination, CONSULTANT will be paid for the Services rendered and work products delivered to CITY in accordance with the Scope of Services up to the effective date in the notice of suspension or termination; provided, however, if this
Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be
obligated to compensate CONSULTANT only for that portion of CONSULTANT’s Services provided in material conformity with this Agreement as such determination is made by the City Manager acting in the reasonable exercise of his/her discretion. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 17, 19.2, 19.3, 19.4, 20, 25,
27, 28, 29 and 30.
19.4. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement, unless made in accordance with Section 17 (Waivers).
SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows:
To CITY: Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303
With a copy to the Purchasing Manager To CONSULTANT: Attention of the Project Manager at the address of CONSULTANT recited on the first page of this Agreement.
CONSULTANT shall provide written notice to CITY of any change of address. SECTION 21. CONFLICT OF INTEREST.
21.1. In executing this Agreement, CONSULTANT covenants that it presently
has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this
Agreement, it will not employ subcontractors or other persons or parties having such an interest.
CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California, as amended from time to time. CONSULTANT agrees to notify CITY if any
conflict arises.
21.3. If the CONSULTANT meets the definition of a “Consultant” as defined by the Regulations of the Fair Political Practices Commission, CONSULTANT will file the
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appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act of 1974, as amended from time to time. SECTION 22. NONDISCRIMINATION; COMPLIANCE WITH ADA.
22.1. As set forth in Palo Alto Municipal Code Section 2.30.510, as amended from time to time, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person due to that person’s race, skin color, gender, gender identity, age, religion, disability, national origin, ancestry, sexual orientation, pregnancy, genetic
information or condition, housing status, marital status, familial status, weight or height of such
person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment.
22.2. CONSULTANT understands and agrees that pursuant to the Americans Disabilities Act (“ADA”), programs, services and other activities provided by a public entity to the public, whether directly or through a contractor or subcontractor, are required to be accessible to the disabled public. CONSULTANT will provide the Services specified in this Agreement in a
manner that complies with the ADA and any other applicable federal, state and local disability
rights laws and regulations, as amended from time to time. CONSULTANT will not discriminate against persons with disabilities in the provision of services, benefits or activities provided under this Agreement.
SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally Preferred Purchasing policies which are available at CITY’s Purchasing Department, hereby incorporated by reference and as amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero
Waste best practices include, first, minimizing and reducing waste; second, reusing waste; and,
third, recycling or composting waste. In particular, CONSULTANT shall comply with the following Zero Waste requirements: (a) All printed materials provided by CONSULTANT to CITY generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports,
and public education materials, shall be double-sided and printed on a minimum of 30% or greater
post-consumer content paper, unless otherwise approved by CITY’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post-consumer material and printed with vegetable-based inks. (b) Goods purchased by CONSULTANT on behalf of CITY shall be purchased in
accordance with CITY’s Environmental Purchasing Policy including but not limited to Extended
Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Department’s office. (c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from
the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE. CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62
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(Citywide Minimum Wage), as amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code Section 4.62.030
for each hour worked within the geographic boundaries of the City of Palo Alto. In addition,
CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code Section 4.62.060. SECTION 25. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of
the Charter of the City of Palo Alto and the Palo Alto Municipal Code, as amended from time to
time. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This Section shall take precedence in the event of a conflict
with any other covenant, term, condition, or provision of this Agreement.
SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS.
26.1. This Project is not subject to prevailing wages and related requirements. CONSULTANT is not required to pay prevailing wages and meet related requirements under the California Labor Code and California Code of Regulations in the performance and implementation of the Project if the contract: (1) is not a public works contract;
(2) is for a public works construction project of $25,000 or less, per California
Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j); or (3) is for a public works alteration, demolition, repair, or maintenance project of $15,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j).
SECTION 27. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS”. For purposes of this Section 27, a “9204 Public Works Project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. (Cal. Pub. Cont. Code § 9204.) Per California Public Contract Code
Section 9204, for Public Works Projects, certain claims procedures shall apply, as set forth in
Exhibit F, entitled “Claims for Public Contract Code Section 9204 Public Works Projects”. This Project is not a 9204 Public Works Project.
SECTION 28. CONFIDENTIAL INFORMATION.
28.1. In the performance of this Agreement, CONSULTANT may have access to CITY’s Confidential Information (defined below). CONSULTANT will hold Confidential Information in strict confidence, not disclose it to any third party, and will use it only for the
performance of its obligations to CITY under this Agreement and for no other purpose.
CONSULTANT will maintain reasonable and appropriate administrative, technical and physical safeguards to ensure the security, confidentiality and integrity of the Confidential Information. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to its
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employees, agents and subcontractors, if any, to the extent they have a need to know in order to perform CONSULTANT’s obligations to CITY under this Agreement and for no other purpose, provided that the CONSULTANT informs them of, and requires them to follow, the confidentiality and security obligations of this Agreement.
28.2. “Confidential Information” means all data, information (including without limitation “Personal Information” about a California resident as defined in Civil Code Section 1798 et seq., as amended from time to time) and materials, in any form or media, tangible or intangible, provided or otherwise made available to CONSULTANT by CITY, directly or
indirectly, pursuant to this Agreement. Confidential Information excludes information that
CONSULTANT can show by appropriate documentation: (i) was publicly known at the time it was provided or has subsequently become publicly known other than by a breach of this Agreement; (ii) was rightfully in CONSULTANT’s possession free of any obligation of confidence prior to receipt of Confidential Information; (iii) is rightfully obtained by
CONSULTANT from a third party without breach of any confidentiality obligation; (iv) is
independently developed by employees of CONSULTANT without any use of or access to the Confidential Information; or (v) CONSULTANT has written consent to disclose signed by an authorized representative of CITY.
28.3. Notwithstanding the foregoing, CONSULTANT may disclose Confidential
Information to the extent required by order of a court of competent jurisdiction or governmental body, provided that CONSULTANT will notify CITY in writing of such order immediately upon receipt and prior to any such disclosure (unless CONSULTANT is prohibited by law from doing so), to give CITY an opportunity to oppose or otherwise respond to such order.
28.4. CONSULTANT will notify City promptly upon learning of any breach in the security of its systems or unauthorized disclosure of, or access to, Confidential Information in its possession or control, and if such Confidential Information consists of Personal Information, CONSULTANT will provide information to CITY sufficient to meet the notice requirements of
Civil Code Section 1798 et seq., as applicable, as amended from time to time.
28.5. Prior to or upon termination or expiration of this Agreement, CONSULTANT will honor any request from the CITY to return or securely destroy all copies of Confidential Information. All Confidential Information is and will remain the property of the CITY
and nothing contained in this Agreement grants or confers any rights to such Confidential
Information on CONSULTANT. 28.6. If selected in Section 30 (Exhibits), this Agreement is also subject to the terms and conditions of the Information Privacy Policy and Cybersecurity Terms and Conditions.
SECTION 29. MISCELLANEOUS PROVISIONS. 29.1. This Agreement will be governed by California law, without regard to its conflict of law provisions.
29.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California.
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29.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys’ fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value
of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third
parties. 29.4. This Agreement, including all exhibits, constitutes the entire and integrated agreement between the parties with respect to the subject matter of this Agreement, and supersedes
all prior agreements, negotiations, representations, statements and undertakings, either oral or
written. This Agreement may be amended only by a written instrument, which is signed by the authorized representatives of the parties and approved as required under Palo Alto Municipal Code, as amended from time to time.
29.5. If a court of competent jurisdiction finds or rules that any provision of this
Agreement is void or unenforceable, the unaffected provisions of this Agreement will remain in full force and effect. 29.6. In the event of a conflict between the terms of this Agreement and the
exhibits hereto (per Section 30) or CONSULTANT’s proposal (if any), the Agreement shall
control. In the event of a conflict between the exhibits hereto and CONSULTANT’s proposal (if any), the exhibits shall control. 29.7. The provisions of all checked boxes in this Agreement shall apply to this
Agreement; the provisions of any unchecked boxes shall not apply to this Agreement.
29.8. All section headings contained in this Agreement are for convenience and reference only and are not intended to define or limit the scope of any provision of this Agreement.
29.9. This Agreement may be signed in multiple counterparts, which, when
executed by the authorized representatives of the parties, shall together constitute a single binding agreement. SECTION 30. EXHIBITS. Each of the following exhibits, if the check box for such exhibit is
selected below, is hereby attached and incorporated into this Agreement by reference as though
fully set forth herein: EXHIBIT A: SCOPE OF SERVICES EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER
EXHIBIT B: SCHEDULE OF PERFORMANCE
EXHIBIT C: COMPENSATION EXHIBIT C-1: SCHEDULE OF RATES EXHIBIT D: INSURANCE REQUIREMENTS
THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS
ARE ATTACHED.
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CONTRACT NO. C25189412B SIGNATURE PAGE IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement as of the date first above written.
CITY OF PALO ALTO
____________________________ City Manager
APPROVED AS TO FORM: __________________________
City Attorney or designee
ECOMOTION INC. By:_________________________________
Name:_______________________________ Title: _______________________________
By:_________________________________ Name:_______________________________
Title: _______________________________
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Ted Flanigan
President
Secretary of EcoMotion
Terry Chan
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EXHIBIT A SCOPE OF SERVICES CONSULTANT shall provide the Services detailed in this Exhibit A, entitled “SCOPE OF
SERVICES”. Notwithstanding any provision herein to the contrary, CONSULTANT’s duties
and services described in this Scope of Services shall not include preparing or assisting CITY with any portion of CITY’s preparation of a request for proposals, request for qualifications, or any other solicitation regarding a subsequent or additional contract with CITY. CITY shall at all times retain responsibility for public contracting, including with respect to any subsequent phase
of this project. CONSULTANT’s participation in the planning, discussions, or drawing of
project plans or specifications shall be limited to conceptual, preliminary, or initial plans or specifications. CONSULTANT shall cooperate with CITY to ensure that all bidders for a subsequent contract on any subsequent phase of this project have access to the same information, including all conceptual, preliminary, or initial plans or specifications prepared by
CONSULTANT pursuant to this Scope of Services.
Services provided under this Agreement will be done on a Task Order basis, and no specific work is authorized by entering into this Agreement without the authorization of Task Orders for specific projects. The scope, budget, and final deliverables for each project under this Agreement
will be agreed upon by the CONSULTANT and CITY before each task begins. CONSULTANT
shall only be compensated for Services performed under an authorized Task Order and CITY may elect, but is not required, to authorize work up to the maximum compensation amount set forth in Section 4.
The general type of projects under this Agreement may include, but are not limited to:
1. Valuing the benefits of flexible and distributed technologies like rooftop solar PV, battery energy storage, vehicle to grid, efficient electrification, and other strategies in reducing utility electric supply and distribution system costs and in enhancing customer resiliency.
2. Identification of ways to utilize efficient electrification technologies such as low powered
EV chargers, circuit pausers and circuit sharing, smart electrical panels, and whole home back-up switches to lower electrical system upgrade costs of homes. 3. Quantifying the value of resiliency for residents and non-residents. 4. Analyzing the resiliency strategies currently available to residents, such as backup
generators, solar and energy storage, and emergency preparation; and analyzing
prospective strategies such as vehicle to home technology 5. Developing a list of potential resiliency programs and projects the City and its electric utility could take to enhance electric resiliency for the community, developing estimates of staff time and budgets needed to evaluate each approach in more depth, and
developing preliminary cost and value estimates of implementation of each approach
where feasible. 6. Evaluating equitable or community-based approaches to the above program (#5 above) focused on low-income residents, critical facilities, or emergency facilities. 7. Evaluating microgrid strategies for the City, its electric utility, and utility customers.
8. Other Distributed Energy Resources (DER) related evaluation.
9. Ways to communicate the benefit and to encourage the utilization efficient electrification technologies such as low powered EV chargers, circuit pausers and circuit sharing, smart
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electrical panels, and whole home back-up switch to lower electrical system upgrade costs of homes.
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EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER
CONSULTANT shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into this Task Order by this reference. CONSULTANT shall furnish the necessary facilities, professional, technical
and supporting personnel required by this Task Order as described below.
CONTRACT NO. OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE) 1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE):
1B. TASK ORDER NO.: 2. CONSULTANT NAME:
3. PERIOD OF PERFORMANCE: START: COMPLETION: 4 TOTAL TASK ORDER PRICE: $__________________ BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $_______________ 5. BUDGET CODE_______________
COST CENTER________________ COST ELEMENT______________
WBS/CIP__________ PHASE__________ 6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:_____________________________________ 7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A)
MUST INCLUDE:
SERVICES AND DELIVERABLES TO BE PROVIDED
SCHEDULE OF PERFORMANCE
MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)
REIMBURSABLE EXPENSES, if any (with “not to exceed” amount) 8. ATTACHMENTS: A: Task Order Scope of Services B (if any): _____________________________
I hereby authorize the performance of the work described in this Task Order. APPROVED: CITY OF PALO ALTO BY:____________________________________
Name __________________________________ Title___________________________________
Date ___________________________________
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:____________________________________
Name __________________________________ Title___________________________________
Date ___________________________________
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EXHIBIT B SCHEDULE OF PERFORMANCE The schedule of performance shall be as provided in the approved Task Order, as detailed in
Exhibit A (Scope of Services) in the case of on-call Services, or as detailed in Section 4 in the case
of Additional Services, provided in all cases that the schedule of performance shall fall within the term as provided in Section 2 (Term) of this Agreement.
Optional Schedule of Performance Provision for On-Call or Additional Services Agreements.
(This provision only applies if checked and only applies to on-call agreements per Section 1 or agreements with Additional Services per Section 4.)
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EXHIBIT C COMPENSATION
CITY agrees to compensate CONSULTANT for the Services performed in accordance with the terms and conditions of this Agreement, including Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4 of the Agreement), based on the hourly rate schedule attached as Exhibit C-1.
The compensation to be paid to CONSULTANT under this Agreement for all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), shall not exceed the amount(s) stated in Section 4 of this Agreement. CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4),
within this/these amount(s). Any work performed or expenses incurred for which payment would
result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY. REIMBURSABLE EXPENSES
CONSULTANT’S ordinary business expenses, such as administrative, overhead, administrative support time/overtime, information systems, software and hardware, photocopying, telecommunications (telephone, internet), in-house printing, insurance and other ordinary business expenses, are included within the scope of payment for Services and
are not reimbursable expenses hereunder.
Reimbursable expenses, if any are specified as reimbursable under this section, will be reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be reimbursed are: NONE up to the not-to-exceed amount of: $0.00.
A. Travel outside the San Francisco Bay Area, including transportation and meals, if specified as reimbursable, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses.
B. Long distance telephone service charges, cellular phone service charges, facsimile
transmission and postage charges, if specified as reimbursable, will be reimbursed at actual cost. All requests for reimbursement of expenses, if any are specified as reimbursable under this
section, shall be accompanied by appropriate backup documentation and information.
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EXHIBIT C-1 SCHEDULE OF RATES
CONSULTANT’s schedule of rates is as follows:
EcoMotion Hourly Rates
Professional Project Role Hourly Rate
Ted Flanigan Project Director $285
Terry Chan Chief Operating Officer $225
Alizeh Siddiqui Project Manager $150
Dave Houghton Building Electrification Specialist $225
Chris Calwell Mobility Electrification Specialist $225
Michael Ware Senior Solar Specialist $225
Benjamin Gold Energy Specialist $150
Simon Caplan Energy Specialist $150
Point Energy Innovations Hourly Rates
Professional Project Role Hourly Rate
Rami Moussa Managing Principal $345
Alexis Karolides Principal $295
Brendan Kolts Associate Principal $245
Avril Levasseur Project Engineer $175
Verdant Associates Hourly Rates
Professional Project Role Hourly Rate
Jean Shelton Co-Founder $286
William Marin Co-Founder $286
Mike Rufo Executive Consultant $312
Brian McAuley Principal Consultant $250
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EXHIBIT D INSURANCE REQUIREMENTS
CONSULTANTS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS AS SPECIFIED HEREIN.
REQUIRED TYPE OF COVERAGE REQUIREMENT
MINIMUM LIMITS
EACH OCCURRENCE AGGREGATE
YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY STATUTORY STATUTORY
YES
GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY
BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED.
$1,000,000 $1,000,000 $1,000,000
$1,000,000 $1,000,000 $1,000,000
YES
AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED
BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED
$1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
$1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
YES
PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE
ALL DAMAGES $1,000,000
YES
THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONSULTANT, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONSULTANT AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES.
I. INSURANCE COVERAGE MUST INCLUDE: A. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONSULTANT’S AGREEMENT TO INDEMNIFY CITY. II. THE CONSULTANT MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING EMAIL: PURCHASINGSUPPORT@CITYOFPALOALTO.ORG III. ENDORSEMENT PROVISIONS WITH RESPECT TO THE INSURANCE AFFORDED TO ADDITIONAL INSUREDS: A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS.
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B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. EVIDENCE OF INSURANCE AND OTHER RELATED NOTICES ARE REQUIRED TO BE FILED WITH THE CITY OF PALO ALTO SENT TO THE FOLLOWING EMAIL: PURCHASINGSUPPORT@CITYOFPALOALTO.ORG
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CITY OF PALO ALTO CONTRACT NO. C25189412C
AGREEMENT FOR PROFESSIONAL SERVICES
BETWEEN THE CITY OF PALO ALTO AND ENERGEIA USA
This Agreement for Professional Services (this “Agreement”) is entered into as of the 16th day of September, 2024 (the “Effective Date”), by and between the CITY OF PALO ALTO, a California
chartered municipal corporation (“CITY”), and ENERGEIA USA, a California corporation,
located at 132 E Street, Suite 380, Davis, CA 95616 (“CONSULTANT”).
The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this reference:
RECITALS
A.CITY intends to award a contract (the “Project”) and desires to engage a consultant to assistwith undertaking analytical work, program design and development advisory services, technicalevaluations (both programmatic and possibly related to specific projects), and policy development
assignments in connection with the Project (the “Services”, as detailed more fully in Exhibit A).
B.CONSULTANT represents that it, its employees and subconsultants, if any, possess thenecessary professional expertise, qualifications, and capability, and all required licenses and/orcertifications to provide the Services.
C.CITY, in reliance on these representations, desires to engage CONSULTANT to providethe Services as more fully described in Exhibit A, entitled “SCOPE OF SERVICES”.
NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this
Agreement, the parties agree as follows:
SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit A in accordance with the terms and conditions contained in this Agreement. The
performance of all Services shall be to the reasonable satisfaction of CITY.
Optional On-Call Provision (This provision only applies if checked and only applies to on-call agreements.)
CITY may elect to, but is not required to, authorize on-call Services up to the maximum
compensation amount set forth in Section 4 (Not to Exceed Compensation). CONSULTANT shall provide on-call Services only by advanced, written authorization from CITY as detailed in this Section. On-call Services, if any, shall be authorized by CITY, as needed, with a Task Order assigned and approved by CITY’s Project Manager,
as identified in Section 13 (Project Management). Each Task Order shall be in substantially
the same form as Exhibit A-1 entitled “PROFESSIONAL SERVICES TASK ORDER”. Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement.
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Compensation for on-call Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum.
To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s
Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter-signature by the CITY Project Manager), the fully executed Task Order shall become part of this Agreement. The cumulative total compensation due to CONSULTANT for all Task Orders issued under this Agreement shall not exceed the
amount of compensation set forth in Section 4. CONSULTANT shall only be compensated
for on-call Services performed under an authorized Task Order and only up to the maximum compensation amount set forth in Section 4. Performance of and payment for any on-call Services are subject to all requirements and restrictions in this Agreement.
SECTION 2. TERM.
The term of this Agreement shall be from the date of its full execution through September 15, 2029 unless terminated earlier pursuant to Section 19 (Termination) of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance
of Services under this Agreement. CONSULTANT shall complete the Services within the term of
this Agreement and in accordance with the schedule set forth in Exhibit B, entitled “SCHEDULE OF PERFORMANCE”. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT.
CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery
of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services shall be based on the compensation structure
detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable expenses
specified therein, and the maximum total compensation shall not exceed Two Hundred Forty Thousand Dollars ($240,000.00). CONSULTANT shall only be compensated for Services performed under an authorized Task Order and CITY may elect, but is not required, to authorize work up to the maximum compensation amount set forth in Section 4. CONSULTANT
acknowledges and agrees that CONSULTANT is not guaranteed or assured of any specific
quantity of Services to be authorized under this Agreement. The hourly schedule of rates, if applicable, is set out in Exhibit C-1, entitled “SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY.
Optional Additional Services Provision (This provision applies only if checked and a not-to-exceed compensation amount for Additional Services is allocated below under this Section 4.)
In addition to the not-to-exceed compensation specified above, CITY has set aside the not-
to-exceed compensation amount of Ten Thousand Dollars ($10,000.00) for the performance of Additional Services (as defined below). The total compensation for performance of the Services, Additional Services and any reimbursable expenses specified
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in Exhibit C, shall not exceed Two Hundred Fifty Thousand Dollars ($250,000.00), as detailed in Exhibit C. “Additional Services” means any work that is determined by CITY to be necessary for the
proper completion of the Project, but which is not included within the Scope of Services
described at Exhibit A. CITY may elect to, but is not required to, authorize Additional Services up to the maximum amount of compensation set forth for Additional Services in this Section 4. CONSULTANT shall provide Additional Services only by advanced, written authorization from CITY as detailed in this Section. Additional Services, if any,
shall be authorized by CITY with a Task Order assigned and authorized by CITY’s Project
Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A-1, entitled “PROFESSIONAL SERVICES TASK ORDER”. Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of
this Agreement. Compensation for Additional Services shall be specified by CITY in the
Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum. To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s
Project Manager within the time specified by the Project Manager, and upon authorization
by CITY (defined as counter-signature by the CITY Project Manager), the fully executed Task Order shall become part of this Agreement. The cumulative total compensation to CONSULTANT for all Task Orders authorized under this Agreement shall not exceed the amount of compensation set forth for Additional Services in this Section 4.
CONSULTANT shall only be compensated for Additional Services performed under an
authorized Task Order and only up to the maximum amount of compensation set forth for Additional Services in this Section 4. Performance of and payment for any Additional Services are subject to all requirements and restrictions in this Agreement.
SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly
invoices to the CITY describing the Services performed and the applicable charges (including, if applicable, an identification of personnel who performed the Services, hours worked, hourly rates, and reimbursable expenses), based upon Exhibit C or, as applicable, CONSULTANT’s schedule of rates set forth in Exhibit C-1. If applicable, the invoice shall also describe the percentage of
completion of each task. The information in CONSULTANT’s invoices shall be subject to
verification by CITY. CONSULTANT shall send all invoices to CITY’s Project Manager at the address specified in Section 13 (Project Management) below. CITY will generally process and pay invoices within thirty (30) days of receipt of an acceptable invoice.
SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All Services shall be performed
by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it, its employees and subcontractors, if any, possess the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT
represents that it, its employees and subcontractors, if any, have and shall maintain during the term
of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All Services to be furnished by CONSULTANT under this Agreement shall meet the professional standard and quality that prevail among
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professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of
and in compliance with all federal, state and local laws, ordinances, regulations, and orders that
may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement, as amended from time to time. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services.
SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs, including, but not limited to, increases in the cost of Services, arising from or caused by CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any change order markup costs, or costs arising from delay caused by the
errors and omissions or unreasonable delay in correcting the errors and omissions.
SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds the CITY’s
stated construction budget by ten percent (10%) or more, CONSULTANT shall make
recommendations to CITY for aligning the Project design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY.
SECTION 10. INDEPENDENT CONTRACTOR. CONSULTANT acknowledges and agrees
that CONSULTANT and any agent or employee of CONSULTANT will act as and shall be deemed at all times to be an independent contractor and shall be wholly responsible for the manner in which CONSULTANT performs the Services requested by CITY under this Agreement. CONSULTANT and any agent or employee of CONSULTANT will not have employee status
with CITY, nor be entitled to participate in any plans, arrangements, or distributions by CITY
pertaining to or in connection with any retirement, health or other benefits that CITY may offer its employees. CONSULTANT will be responsible for all obligations and payments, whether imposed by federal, state or local law, including, but not limited to, FICA, income tax withholdings, workers’ compensation, unemployment compensation, insurance, and other similar
responsibilities related to CONSULTANT’s performance of the Services, or any agent or
employee of CONSULTANT providing same. Nothing in this Agreement shall be construed as creating an employment or agency relationship between CITY and CONSULTANT or any agent or employee of CONSULTANT. Any terms in this Agreement referring to direction from CITY shall be construed as providing for direction as to policy and the result of CONSULTANT’s
provision of the Services only, and not as to the means by which such a result is obtained.
SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s
obligations hereunder without the prior written approval of the City Manager. Any purported
assignment made without the prior written approval of the City Manager will be void and without effect. Subject to the foregoing, the covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators and assignees of the
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parties. SECTION 12. SUBCONTRACTING.
Option A: No Subcontractor: CONSULTANT shall not subcontract any portion of the
Services to be performed under this Agreement without the prior written authorization of the City Manager or designee. In the event CONSULTANT does subcontract any portion of the work to be performed under this Agreement, CONSULTANT shall be fully responsible for all acts and omissions of subcontractors.
Option B: Subcontracts Authorized: Notwithstanding Section 11 (Assignment) above, CITY agrees that subcontractors may be used to complete the Services. The subcontractors authorized by CITY to perform work on this Project are:
CONSULTANT shall be responsible for directing the work of any subcontractors and for any compensation due to subcontractors. CITY assumes no responsibility whatsoever concerning compensation of subcontractors. CONSULTANT shall be fully responsible to CITY for all acts and omissions of subcontractors. CONSULTANT shall change or add subcontractors only with
the prior written approval of the City Manager or designee. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Ceri Beeman, 132 E Street, Suite 380, Davis CA 95616, Telephone: (530)379-3417, Email: us_tenders@energeia-usa.com as the CONSULTANT’s Project Manager to have supervisory responsibility for the
performance, progress, and execution of the Services and represent CONSULTANT during the
day-to-day performance of the Services. If circumstances cause the substitution of the CONSULTANT’s Project Manager or any other of CONSULTANT’s key personnel for any reason, the appointment of a substitute Project Manager and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s Project Manager.
CONSULTANT, at CITY’s request, shall promptly remove CONSULTANT personnel who CITY
finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Services or a threat to the safety of persons or property. CITY’s Project Manager is Shiva Swaminathan, Utilities Department, Utilities Resource
Management Division, 250 Hamilton Ave., Palo Alto, CA, 94301, Telephone: (650) 329-2465,
Email: Shiva.Swaminathan@CityofPaloAlto.org. CITY’s Project Manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate Project Manager from time to time.
SECTION 14. OWNERSHIP OF MATERIALS. All work product, including without
limitation, all writings, drawings, studies, sketches, photographs, plans, reports, specifications, computations, models, recordings, data, documents, and other materials developed under this Agreement, in any form or media, shall be and remain the exclusive property of CITY without restriction or limitation upon their use. Neither CONSULTANT nor its subcontractors, if any, shall
make any of such work product available to any individual or organization without the prior written
approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the Scope of Services.
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SECTION 15. AUDITS. CONSULTANT agrees to permit CITY and its authorized representatives to audit, at any reasonable time during the term of this Agreement and for four (4)
years from the date of final payment, CONSULTANT’s records pertaining to matters covered by
this Agreement, including without limitation records demonstrating compliance with the requirements of Section 10 (Independent Contractor). CONSULTANT further agrees to maintain and retain accurate books and records in accordance with generally accepted accounting principles for at least four (4) years after the expiration or earlier termination of this Agreement or the
completion of any audit hereunder, whichever is later.
SECTION 16. INDEMNITY. 16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify,
defend and hold harmless CITY, its Council members, officers, employees and agents (each an
“Indemnified Party”) from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorney’s fees, experts fees, court costs and disbursements (“Claims”) resulting from, arising out of or in any manner related to performance or
nonperformance by CONSULTANT, its officers, employees, agents or contractors under this
Agreement, regardless of whether or not it is caused in part by an Indemnified Party. 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from a Claim arising from the active
negligence or willful misconduct of an Indemnified Party that is not contributed to by any act of,
or by any omission to perform a duty imposed by law or agreement by, CONSULTANT, its officers, employees, agents or contractors under this Agreement. 16.3. The acceptance of CONSULTANT’s Services and duties by CITY shall not
operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive
the expiration or early termination of this Agreement. SECTION 17. WAIVERS. No waiver of a condition or nonperformance of an obligation under this Agreement is effective unless it is in writing in accordance with Section 29.4 of this
Agreement. No delay or failure to require performance of any provision of this Agreement shall
constitute a waiver of that provision as to that or any other instance. Any waiver granted shall apply solely to the specific instance expressly stated. No single or partial exercise of any right or remedy will preclude any other or further exercise of any right or remedy.
SECTION 18. INSURANCE.
18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit D, entitled “INSURANCE REQUIREMENTS”. CONSULTANT and its contractors, if any, shall
obtain a policy endorsement naming CITY as an additional insured under any general liability or
automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through
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carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY
as an additional insured under such policies as required above.
18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary
coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except
after filing with the Purchasing Manager thirty (30) days’ prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT’s
receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates
evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term of this Agreement. 18.4. The procuring of such required policy or policies of insurance will not be
construed to limit CONSULTANT’s liability hereunder nor to fulfill the indemnification
provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired.
SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written
notice thereof to CONSULTANT. If CONSULTANT fails to perform any of its material
obligations under this Agreement, in addition to all other remedies provided under this Agreement or at law, the City Manager may terminate this Agreement sooner upon written notice of termination. Upon receipt of any notice of suspension or termination, CONSULTANT will discontinue its performance of the Services on the effective date in the notice of suspension or
termination.
19.2. In event of suspension or termination, CONSULTANT will deliver to the City Manager on or before the effective date in the notice of suspension or termination, any and all work product, as detailed in Section 14 (Ownership of Materials), whether or not completed,
prepared by CONSULTANT or its contractors, if any, in the performance of this Agreement. Such
work product is the property of CITY, as detailed in Section 14 (Ownership of Materials). 19.3. In event of suspension or termination, CONSULTANT will be paid for the Services rendered and work products delivered to CITY in accordance with the Scope of Services
up to the effective date in the notice of suspension or termination; provided, however, if this
Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s Services provided in material conformity with this Agreement as such determination is made by the City
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Manager acting in the reasonable exercise of his/her discretion. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 17, 19.2, 19.3, 19.4, 20, 25, 27, 28, 29 and 30.
19.4. No payment, partial payment, acceptance, or partial acceptance by CITY
will operate as a waiver on the part of CITY of any of its rights under this Agreement, unless made in accordance with Section 17 (Waivers). SECTION 20. NOTICES.
All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY: Office of the City Clerk
City of Palo Alto
Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Purchasing Manager
To CONSULTANT: Attention of the Project Manager at the address of CONSULTANT recited on the first page of this Agreement. CONSULTANT shall provide written notice to CITY of any change of address.
SECTION 21. CONFLICT OF INTEREST. 21.1. In executing this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which
would conflict in any manner or degree with the performance of the Services.
21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subcontractors or other persons or parties having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this
Agreement is an officer or employee of CITY; this provision will be interpreted in accordance
with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California, as amended from time to time. CONSULTANT agrees to notify CITY if any conflict arises.
21.3. If the CONSULTANT meets the definition of a “Consultant” as defined by
the Regulations of the Fair Political Practices Commission, CONSULTANT will file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act of 1974, as amended from time to time.
SECTION 22. NONDISCRIMINATION; COMPLIANCE WITH ADA.
22.1. As set forth in Palo Alto Municipal Code Section 2.30.510, as amended from time to time, CONSULTANT certifies that in the performance of this Agreement, it shall not
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discriminate in the employment of any person due to that person’s race, skin color, gender, gender identity, age, religion, disability, national origin, ancestry, sexual orientation, pregnancy, genetic information or condition, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section
2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the
penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. 22.2. CONSULTANT understands and agrees that pursuant to the Americans
Disabilities Act (“ADA”), programs, services and other activities provided by a public entity to
the public, whether directly or through a contractor or subcontractor, are required to be accessible to the disabled public. CONSULTANT will provide the Services specified in this Agreement in a manner that complies with the ADA and any other applicable federal, state and local disability rights laws and regulations, as amended from time to time. CONSULTANT will not discriminate
against persons with disabilities in the provision of services, benefits or activities provided under
this Agreement. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally
Preferred Purchasing policies which are available at CITY’s Purchasing Department, hereby
incorporated by reference and as amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero Waste best practices include, first, minimizing and reducing waste; second, reusing waste; and, third, recycling or composting waste. In particular, CONSULTANT shall comply with the
following Zero Waste requirements:
(a) All printed materials provided by CONSULTANT to CITY generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by CITY’s Project Manager. Any
submitted materials printed by a professional printing company shall be a minimum of 30% or
greater post-consumer material and printed with vegetable-based inks. (b) Goods purchased by CONSULTANT on behalf of CITY shall be purchased in accordance with CITY’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file
at the Purchasing Department’s office.
(c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed.
SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE.
CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such
employees no less than the minimum wage set forth in Palo Alto Municipal Code Section 4.62.030
for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code Section 4.62.060.
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SECTION 25. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code, as amended from time to time. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the
event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal
year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This Section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement.
SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS. 26.1. This Project is not subject to prevailing wages and related requirements. CONSULTANT is not required to pay prevailing wages and meet related
requirements under the California Labor Code and California Code of Regulations in the
performance and implementation of the Project if the contract: (1) is not a public works contract; (2) is for a public works construction project of $25,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j); or
(3) is for a public works alteration, demolition, repair, or maintenance project of
$15,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j). SECTION 27. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS”. For
purposes of this Section 27, a “9204 Public Works Project” means the erection, construction,
alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. (Cal. Pub. Cont. Code § 9204.) Per California Public Contract Code Section 9204, for Public Works Projects, certain claims procedures shall apply, as set forth in Exhibit F, entitled “Claims for Public Contract Code Section 9204 Public Works Projects”.
This Project is not a 9204 Public Works Project. SECTION 28. CONFIDENTIAL INFORMATION.
28.1. In the performance of this Agreement, CONSULTANT may have access to
CITY’s Confidential Information (defined below). CONSULTANT will hold Confidential Information in strict confidence, not disclose it to any third party, and will use it only for the performance of its obligations to CITY under this Agreement and for no other purpose. CONSULTANT will maintain reasonable and appropriate administrative, technical and physical
safeguards to ensure the security, confidentiality and integrity of the Confidential Information.
Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to its employees, agents and subcontractors, if any, to the extent they have a need to know in order to perform CONSULTANT’s obligations to CITY under this Agreement and for no other purpose, provided that the CONSULTANT informs them of, and requires them to follow, the confidentiality
and security obligations of this Agreement.
28.2. “Confidential Information” means all data, information (including without limitation “Personal Information” about a California resident as defined in Civil Code Section
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1798 et seq., as amended from time to time) and materials, in any form or media, tangible or intangible, provided or otherwise made available to CONSULTANT by CITY, directly or indirectly, pursuant to this Agreement. Confidential Information excludes information that CONSULTANT can show by appropriate documentation: (i) was publicly known at the time it
was provided or has subsequently become publicly known other than by a breach of this
Agreement; (ii) was rightfully in CONSULTANT’s possession free of any obligation of confidence prior to receipt of Confidential Information; (iii) is rightfully obtained by CONSULTANT from a third party without breach of any confidentiality obligation; (iv) is independently developed by employees of CONSULTANT without any use of or access to the
Confidential Information; or (v) CONSULTANT has written consent to disclose signed by an
authorized representative of CITY. 28.3. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to the extent required by order of a court of competent jurisdiction or governmental
body, provided that CONSULTANT will notify CITY in writing of such order immediately upon
receipt and prior to any such disclosure (unless CONSULTANT is prohibited by law from doing so), to give CITY an opportunity to oppose or otherwise respond to such order. 28.4. CONSULTANT will notify City promptly upon learning of any breach in
the security of its systems or unauthorized disclosure of, or access to, Confidential Information in
its possession or control, and if such Confidential Information consists of Personal Information, CONSULTANT will provide information to CITY sufficient to meet the notice requirements of Civil Code Section 1798 et seq., as applicable, as amended from time to time.
28.5. Prior to or upon termination or expiration of this Agreement,
CONSULTANT will honor any request from the CITY to return or securely destroy all copies of Confidential Information. THE CONSULTANT MAY RETAIN ONE (1) COPY OF SUCH CONFIDENTIAL INFORMATION FOR ITS LEGAL ARCHIVES, WHICH SHALL REMAIN PROTECTED SUBJECT TO THE TERMS OF THIS AGREEMENT. All Confidential
Information is and will remain the property of the CITY and nothing contained in this Agreement
grants or confers any rights to such Confidential Information on CONSULTANT. 28.6. If selected in Section 30 (Exhibits), this Agreement is also subject to the terms and conditions of the Information Privacy Policy and Cybersecurity Terms and Conditions.
SECTION 29. MISCELLANEOUS PROVISIONS. 29.1. This Agreement will be governed by California law, without regard to its conflict of law provisions.
29.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California.
29.3. The prevailing party in any action brought to enforce the provisions of this
Agreement may recover its reasonable costs and attorneys’ fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third
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parties. 29.4. This Agreement, including all exhibits, constitutes the entire and integrated agreement between the parties with respect to the subject matter of this Agreement, and supersedes
all prior agreements, negotiations, representations, statements and undertakings, either oral or
written. This Agreement may be amended only by a written instrument, which is signed by the authorized representatives of the parties and approved as required under Palo Alto Municipal Code, as amended from time to time.
29.5. If a court of competent jurisdiction finds or rules that any provision of this
Agreement is void or unenforceable, the unaffected provisions of this Agreement will remain in full force and effect. 29.6. In the event of a conflict between the terms of this Agreement and the
exhibits hereto (per Section 30) or CONSULTANT’s proposal (if any), the Agreement shall
control. In the event of a conflict between the exhibits hereto and CONSULTANT’s proposal (if any), the exhibits shall control. 29.7. The provisions of all checked boxes in this Agreement shall apply to this
Agreement; the provisions of any unchecked boxes shall not apply to this Agreement.
29.8. All section headings contained in this Agreement are for convenience and reference only and are not intended to define or limit the scope of any provision of this Agreement.
29.9. This Agreement may be signed in multiple counterparts, which, when
executed by the authorized representatives of the parties, shall together constitute a single binding agreement. SECTION 30. EXHIBITS. Each of the following exhibits, if the check box for such exhibit is
selected below, is hereby attached and incorporated into this Agreement by reference as though
fully set forth herein: EXHIBIT A: SCOPE OF SERVICES EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER
EXHIBIT B: SCHEDULE OF PERFORMANCE
EXHIBIT C: COMPENSATION EXHIBIT C-1: SCHEDULE OF RATES EXHIBIT D: INSURANCE REQUIREMENTS
THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS
ARE ATTACHED.
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CONTRACT NO. C25189412C SIGNATURE PAGE IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement as of the date first above written.
CITY OF PALO ALTO
____________________________ City Manager
APPROVED AS TO FORM: __________________________
City Attorney or designee
ENERGEIA USA By:_________________________________
Name:_______________________________ Title: _______________________________
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Ceri Walbran
President & CEO
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EXHIBIT A SCOPE OF SERVICES CONSULTANT shall provide the Services detailed in this Exhibit A, entitled “SCOPE OF
SERVICES”. Notwithstanding any provision herein to the contrary, CONSULTANT’s duties
and services described in this Scope of Services shall not include preparing or assisting CITY with any portion of CITY’s preparation of a request for proposals, request for qualifications, or any other solicitation regarding a subsequent or additional contract with CITY. CITY shall at all times retain responsibility for public contracting, including with respect to any subsequent phase
of this project. CONSULTANT’s participation in the planning, discussions, or drawing of
project plans or specifications shall be limited to conceptual, preliminary, or initial plans or specifications. CONSULTANT shall cooperate with CITY to ensure that all bidders for a subsequent contract on any subsequent phase of this project have access to the same information, including all conceptual, preliminary, or initial plans or specifications prepared by
CONSULTANT pursuant to this Scope of Services.
Services provided under this Agreement will be done on a Task Order basis, and no specific work is authorized by entering into this Agreement without the authorization of Task Orders for specific projects. The scope, budget, and final deliverables for each project under this Agreement
will be agreed upon by the CONSULTANT and CITY before each task begins. CONSULTANT
shall only be compensated for Services performed under an authorized Task Order and CITY may elect, but is not required, to authorize work up to the maximum compensation amount set forth in Section 4.
The general type of projects under this Agreement may include, but are not limited to:
1. Valuing the benefits of flexible and distributed technologies like rooftop solar PV, battery energy storage, vehicle to grid, efficient electrification, and other strategies in reducing utility electric supply and distribution system costs and in enhancing customer resiliency.
2. Identification of ways to utilize efficient electrification technologies such as low powered
EV chargers, circuit pausers and circuit sharing, smart electrical panels, and whole home back-up switches to lower electrical system upgrade costs of homes. 3. Quantifying the value of resiliency for residents and non-residents. 4. Analyzing the resiliency strategies currently available to residents, such as backup
generators, solar and energy storage, and emergency preparation; and analyzing
prospective strategies such as vehicle to home technology 5. Developing a list of potential resiliency programs and projects the City and its electric utility could take to enhance electric resiliency for the community, developing estimates of staff time and budgets needed to evaluate each approach in more depth, and
developing preliminary cost and value estimates of implementation of each approach
where feasible. 6. Evaluating equitable or community-based approaches to the above program (#5 above) focused on low-income residents, critical facilities, or emergency facilities. 7. Evaluating microgrid strategies for the City, its electric utility, and utility customers.
8. Other Distributed Energy Resources (DER) related evaluation.
9. Ways to communicate the benefit and to encourage the utilization efficient electrification technologies such as low powered EV chargers, circuit pausers and circuit sharing, smart
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electrical panels, and whole home back-up switch to lower electrical system upgrade costs of homes.
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EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER
CONSULTANT shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into this Task Order by this reference. CONSULTANT shall furnish the necessary facilities, professional, technical
and supporting personnel required by this Task Order as described below.
CONTRACT NO. OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE) 1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): 1B. TASK ORDER NO.: 2. CONSULTANT NAME: 3. PERIOD OF PERFORMANCE: START: COMPLETION: 4 TOTAL TASK ORDER PRICE: $__________________ BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $_______________ 5. BUDGET CODE_______________ COST CENTER________________ COST ELEMENT______________ WBS/CIP__________ PHASE__________ 6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:_____________________________________ 7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A) MUST INCLUDE:
SERVICES AND DELIVERABLES TO BE PROVIDED
SCHEDULE OF PERFORMANCE
MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)
REIMBURSABLE EXPENSES, if any (with “not to exceed” amount) 8. ATTACHMENTS: A: Task Order Scope of Services B (if any): _____________________________
I hereby authorize the performance of the work described in this Task Order. APPROVED: CITY OF PALO ALTO BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________
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:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________
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EXHIBIT B SCHEDULE OF PERFORMANCE The schedule of performance shall be as provided in the approved Task Order, as detailed in
Exhibit A (Scope of Services) in the case of on-call Services, or as detailed in Section 4 in the case
of Additional Services, provided in all cases that the schedule of performance shall fall within the term as provided in Section 2 (Term) of this Agreement.
Optional Schedule of Performance Provision for On-Call or Additional Services Agreements.
(This provision only applies if checked and only applies to on-call agreements per Section 1 or agreements with Additional Services per Section 4.)
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EXHIBIT C COMPENSATION
CITY agrees to compensate CONSULTANT for the Services performed in accordance with the terms and conditions of this Agreement, including Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4 of the Agreement), based on the hourly rate schedule attached as Exhibit C-1.
The compensation to be paid to CONSULTANT under this Agreement for all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), shall not exceed the amount(s) stated in Section 4 of this Agreement. CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4),
within this/these amount(s). Any work performed or expenses incurred for which payment would
result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY. REIMBURSABLE EXPENSES
CONSULTANT’S ordinary business expenses, such as administrative, overhead, administrative support time/overtime, information systems, software and hardware, photocopying, telecommunications (telephone, internet), in-house printing, insurance and other ordinary business expenses, are included within the scope of payment for Services and
are not reimbursable expenses hereunder.
Reimbursable expenses, if any are specified as reimbursable under this section, will be reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be reimbursed are: NONE up to the not-to-exceed amount of: $0.00.
A. Travel outside the San Francisco Bay Area, including transportation and meals, if specified as reimbursable, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses.
B. Long distance telephone service charges, cellular phone service charges, facsimile
transmission and postage charges, if specified as reimbursable, will be reimbursed at actual cost. All requests for reimbursement of expenses, if any are specified as reimbursable under this
section, shall be accompanied by appropriate backup documentation and information.
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EXHIBIT C-1 SCHEDULE OF RATES
CONSULTANT’s schedule of rates is as follows:
Staffing Tier Hourly Rates ($/hour)
Project Director (PD) $444
Project Manager (PM) $225
Project Analyst (PA) $131
In addition to the hourly rates outlined above, please indicate a melded/average rate for types of tasks outlined in the statement of work.
• The Energeia team’s blended daily rate is $1,621.
• The Energeia team’s blended hourly rate is $202.
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EXHIBIT D INSURANCE REQUIREMENTS
CONSULTANTS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS AS SPECIFIED HEREIN.
REQUIRED TYPE OF COVERAGE REQUIREMENT
MINIMUM LIMITS
EACH OCCURRENCE AGGREGATE
YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY STATUTORY STATUTORY
YES
GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY
BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED.
$1,000,000 $1,000,000 $1,000,000
$1,000,000 $1,000,000 $1,000,000
YES
AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED
BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED
$1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
$1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
YES
PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE
ALL DAMAGES $1,000,000
YES
THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONSULTANT, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONSULTANT AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES.
I. INSURANCE COVERAGE MUST INCLUDE: A. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONSULTANT’S AGREEMENT TO INDEMNIFY CITY. II. THE CONSULTANT MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING EMAIL: PURCHASINGSUPPORT@CITYOFPALOALTO.ORG III. ENDORSEMENT PROVISIONS WITH RESPECT TO THE INSURANCE AFFORDED TO ADDITIONAL INSUREDS: A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS.
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B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. EVIDENCE OF INSURANCE AND OTHER RELATED NOTICES ARE REQUIRED TO BE FILED WITH THE CITY OF PALO ALTO SENT TO THE FOLLOWING EMAIL: PURCHASINGSUPPORT@CITYOFPALOALTO.ORG
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CITY OF PALO ALTO CONTRACT NO. C25189412D AGREEMENT FOR PROFESSIONAL SERVICES
BETWEEN THE CITY OF PALO ALTO AND ENERGY AND ENVIRONMENTAL ECONOMICS, INC. This Agreement for Professional Services (this “Agreement”) is entered into as of the 16th day of September, 2024 (the “Effective Date”), by and between the CITY OF PALO ALTO, a California
chartered municipal corporation (“CITY”), and ENERGY AND ENVIRONMENTAL
ECONOMICS, INC , a California corporation, located at 44 Montgomery Street, Suite 1500, San Francisco, CA 94104 (“CONSULTANT”). The following recitals are a substantive portion of this Agreement and are fully incorporated herein
by this reference: RECITALS A. CITY intends to award a contract (the “Project”) and desires to engage a consultant to assist with undertaking analytical work, program design and development advisory services, technical
evaluations (both programmatic and possibly related to specific projects), and policy development
assignments in connection with the Project (the “Services”, as detailed more fully in Exhibit A). B. CONSULTANT represents that it, its employees and subconsultants, if any, possess the necessary professional expertise, qualifications, and capability, and all required licenses and/or
certifications to provide the Services.
C. CITY, in reliance on these representations, desires to engage CONSULTANT to provide the Services as more fully described in Exhibit A, entitled “SCOPE OF SERVICES”.
NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this
Agreement, the parties agree as follows: SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described
in Exhibit A in accordance with the terms and conditions contained in this Agreement. The
performance of all Services shall be to the reasonable satisfaction of CITY. Optional On-Call Provision (This provision only applies if checked and only applies to on-call agreements.)
CITY may elect to, but is not required to, authorize on-call Services up to the maximum compensation amount set forth in Section 4 (Not to Exceed Compensation). CONSULTANT shall provide on-call Services only by advanced, written authorization from CITY as detailed in this Section. On-call Services, if any, shall be authorized by
CITY, as needed, with a Task Order assigned and approved by CITY’s Project Manager,
as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A-1 entitled “PROFESSIONAL SERVICES TASK ORDER”. Each Task Order shall contain a specific scope of services, schedule of performance and
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maximum compensation amount, in accordance with the provisions of this Agreement. Compensation for on-call Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum.
To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter-signature by the CITY Project Manager), the fully executed Task Order shall become part of this Agreement. The cumulative total compensation due
to CONSULTANT for all Task Orders issued under this Agreement shall not exceed the
amount of compensation set forth in Section 4. CONSULTANT shall only be compensated for on-call Services performed under an authorized Task Order and only up to the maximum compensation amount set forth in Section 4. Performance of and payment for any on-call Services are subject to all requirements and restrictions in this Agreement.
SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through September 15, 2029 unless terminated earlier pursuant to Section 19 (Termination) of this Agreement.
SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance
of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit B, entitled “SCHEDULE OF PERFORMANCE”. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and
timely manner based upon the circumstances and direction communicated to the CONSULTANT.
CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to
CONSULTANT for performance of the Services shall be based on the compensation structure
detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed Two Hundred Forty Thousand Dollars ($240,000.00). CONSULTANT shall only be compensated for Services performed under an authorized Task Order and CITY may elect, but is not required, to authorize
work up to the maximum compensation amount set forth in Section 4. CONSULTANT
acknowledges and agrees that CONSULTANT is not guaranteed or assured of any specific quantity of Services to be authorized under this Agreement. The hourly schedule of rates, if applicable, is set out in Exhibit C-1, entitled “SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would result in a total exceeding the maximum
compensation set forth in this Section 4 shall be at no cost to the CITY.
Optional Additional Services Provision (This provision applies only if checked and a not-to-exceed compensation amount for Additional Services is allocated below under this Section 4.)
In addition to the not-to-exceed compensation specified above, CITY has set aside the not-to-exceed compensation amount of Ten Thousand Dollars ($10,000.00) for the performance of Additional Services (as defined below). The total compensation for
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performance of the Services, Additional Services and any reimbursable expenses specified in Exhibit C, shall not exceed Two Hundred Fifty Thousand Dollars ($250,000.00), as detailed in Exhibit C.
“Additional Services” means any work that is determined by CITY to be necessary for the
proper completion of the Project, but which is not included within the Scope of Services described at Exhibit A. CITY may elect to, but is not required to, authorize Additional Services up to the maximum amount of compensation set forth for Additional Services in this Section 4. CONSULTANT shall provide Additional Services only by advanced,
written authorization from CITY as detailed in this Section. Additional Services, if any,
shall be authorized by CITY with a Task Order assigned and authorized by CITY’s Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A-1, entitled “PROFESSIONAL SERVICES TASK ORDER”. Each Task Order shall contain a specific scope of services, schedule of
performance and maximum compensation amount, in accordance with the provisions of
this Agreement. Compensation for Additional Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum.
To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s
Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter-signature by the CITY Project Manager), the fully executed Task Order shall become part of this Agreement. The cumulative total compensation to CONSULTANT for all Task Orders authorized under this Agreement shall not exceed the
amount of compensation set forth for Additional Services in this Section 4.
CONSULTANT shall only be compensated for Additional Services performed under an authorized Task Order and only up to the maximum amount of compensation set forth for Additional Services in this Section 4. Performance of and payment for any Additional Services are subject to all requirements and restrictions in this Agreement.
SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the Services performed and the applicable charges (including, if applicable, an identification of personnel who performed the Services, hours worked, hourly rates, and reimbursable expenses), based upon Exhibit C or, as applicable, CONSULTANT’s schedule
of rates set forth in Exhibit C-1. If applicable, the invoice shall also describe the percentage of
completion of each task. The information in CONSULTANT’s invoices shall be subject to verification by CITY. CONSULTANT shall send all invoices to CITY’s Project Manager at the address specified in Section 13 (Project Management) below. CITY will generally process and pay invoices within thirty (30) days of receipt of an acceptable invoice.
SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it, its employees and subcontractors, if any, possess the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have
sufficient skill and experience to perform the Services assigned to them. CONSULTANT
represents that it, its employees and subcontractors, if any, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All Services to be furnished by CONSULTANT
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under this Agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances.
SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of
and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement, as amended from time to time. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in
the performance of the Services.
SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs, including, but not limited to, increases in the cost of Services, arising from or caused by CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such
errors and omissions, any change order markup costs, or costs arising from delay caused by the
errors and omissions or unreasonable delay in correcting the errors and omissions. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of
design submittal. If the total estimated construction cost at any submittal exceeds the CITY’s
stated construction budget by ten percent (10%) or more, CONSULTANT shall make recommendations to CITY for aligning the Project design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY.
SECTION 10. INDEPENDENT CONTRACTOR. CONSULTANT acknowledges and agrees that CONSULTANT and any agent or employee of CONSULTANT will act as and shall be deemed at all times to be an independent contractor and shall be wholly responsible for the manner in which CONSULTANT performs the Services requested by CITY under this Agreement.
CONSULTANT and any agent or employee of CONSULTANT will not have employee status
with CITY, nor be entitled to participate in any plans, arrangements, or distributions by CITY pertaining to or in connection with any retirement, health or other benefits that CITY may offer its employees. CONSULTANT will be responsible for all obligations and payments, whether imposed by federal, state or local law, including, but not limited to, FICA, income tax
withholdings, workers’ compensation, unemployment compensation, insurance, and other similar
responsibilities related to CONSULTANT’s performance of the Services, or any agent or employee of CONSULTANT providing same. Nothing in this Agreement shall be construed as creating an employment or agency relationship between CITY and CONSULTANT or any agent or employee of CONSULTANT. Any terms in this Agreement referring to direction from CITY
shall be construed as providing for direction as to policy and the result of CONSULTANT’s
provision of the Services only, and not as to the means by which such a result is obtained. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign
or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s
obligations hereunder without the prior written approval of the City Manager. Any purported assignment made without the prior written approval of the City Manager will be void and without effect. Subject to the foregoing, the covenants, terms, conditions and provisions of this Agreement
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will apply to, and will bind, the heirs, successors, executors, administrators and assignees of the parties. SECTION 12. SUBCONTRACTING.
Option A: No Subcontractor: CONSULTANT shall not subcontract any portion of the Services to be performed under this Agreement without the prior written authorization of the City Manager or designee. In the event CONSULTANT does subcontract any portion of the work to be performed under this Agreement, CONSULTANT shall be fully responsible for all acts and
omissions of subcontractors.
Option B: Subcontracts Authorized: Notwithstanding Section 11 (Assignment) above, CITY agrees that subcontractors may be used to complete the Services. The subcontractors authorized by CITY to perform work on this Project are:
CONSULTANT shall be responsible for directing the work of any subcontractors and for any compensation due to subcontractors. CITY assumes no responsibility whatsoever concerning compensation of subcontractors. CONSULTANT shall be fully responsible to CITY for all acts
and omissions of subcontractors. CONSULTANT shall change or add subcontractors only with
the prior written approval of the City Manager or designee. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Amber Mahone, 44 Montgomery Street, Suite 1500, San Francisco CA 94104, Telephone: (415)391-5100, Email:
rfp@ethree.com as the CONSULTANT’s Project Manager to have supervisory responsibility
for the performance, progress, and execution of the Services and represent CONSULTANT during the day-to-day performance of the Services. If circumstances cause the substitution of the CONSULTANT’s Project Manager or any other of CONSULTANT’s key personnel for any reason, the appointment of a substitute Project Manager and the assignment of any key new or
replacement personnel will be subject to the prior written approval of the CITY’s Project Manager.
CONSULTANT, at CITY’s request, shall promptly remove CONSULTANT personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Services or a threat to the safety of persons or property.
CITY’s Project Manager is Shiva Swaminathan, Utilities Department, Utilities Resource
Management Division, 250 Hamilton Ave., Palo Alto, CA, 94301, Telephone: (650) 329-2465, Email: Shiva.Swaminathan@CityofPaloAlto.org. CITY’s Project Manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate Project Manager from time to time.
SECTION 14. OWNERSHIP OF MATERIALS. All work product, including without limitation, all writings, drawings, studies, sketches, photographs, plans, reports, specifications, computations, models, recordings, data, documents, and other materials and copyright interests developed under this Agreement, in any form or media, shall be and remain the exclusive property
of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights
which arise from creation of the work product pursuant to this Agreement are vested in CITY, and CONSULTANT hereby waives and relinquishes all claims to copyright or other intellectual property rights in favor of CITY. Neither CONSULTANT nor its subcontractors, if any, shall
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make any of such work product available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the Scope of Services.
SECTION 15. AUDITS. CONSULTANT agrees to permit CITY and its authorized representatives to audit, at any reasonable time during the term of this Agreement and for four (4) years from the date of final payment, CONSULTANT’s records pertaining to matters covered by this Agreement, including without limitation records demonstrating compliance with the
requirements of Section 10 (Independent Contractor). CONSULTANT further agrees to maintain
and retain accurate books and records in accordance with generally accepted accounting principles for at least four (4) years after the expiration or earlier termination of this Agreement or the completion of any audit hereunder, whichever is later.
SECTION 16. INDEMNITY. 16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature,
including death or injury to any person, property damage or any other loss, including all costs and
expenses of whatever nature including attorney’s fees, experts fees, court costs and disbursements (“Claims”) resulting from, arising out of or in any manner related to performance or nonperformance by CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party.
16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from a Claim arising from the active negligence or willful misconduct of an Indemnified Party that is not contributed to by any act of, or by any omission to perform a duty imposed by law or agreement by, CONSULTANT, its
officers, employees, agents or contractors under this Agreement. 16.3. The acceptance of CONSULTANT’s Services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement.
SECTION 17. WAIVERS. No waiver of a condition or nonperformance of an obligation under this Agreement is effective unless it is in writing in accordance with Section 29.4 of this Agreement. No delay or failure to require performance of any provision of this Agreement shall constitute a waiver of that provision as to that or any other instance. Any waiver granted shall
apply solely to the specific instance expressly stated. No single or partial exercise of any right or
remedy will preclude any other or further exercise of any right or remedy. SECTION 18. INSURANCE.
18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in
full force and effect during the term of this Agreement, the insurance coverage described in Exhibit D, entitled “INSURANCE REQUIREMENTS”. CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or
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automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or
authorized to transact insurance business in the State of California. Any and all contractors of
CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above.
18.3. Certificates evidencing such insurance shall be filed with CITY
concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days’ prior written notice of the cancellation
or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30)
days’ notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term
of this Agreement.
18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT’s liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance,
CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss
caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES.
19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. If CONSULTANT fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided under this Agreement
or at law, the City Manager may terminate this Agreement sooner upon written notice of
termination. Upon receipt of any notice of suspension or termination, CONSULTANT will discontinue its performance of the Services on the effective date in the notice of suspension or termination.
19.2. In event of suspension or termination, CONSULTANT will deliver to the
City Manager on or before the effective date in the notice of suspension or termination, any and all work product, as detailed in Section 14 (Ownership of Materials), whether or not completed, prepared by CONSULTANT or its contractors, if any, in the performance of this Agreement. Such work product is the property of CITY, as detailed in Section 14 (Ownership of Materials).
19.3. In event of suspension or termination, CONSULTANT will be paid for the Services rendered and work products delivered to CITY in accordance with the Scope of Services up to the effective date in the notice of suspension or termination; provided, however, if this
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Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s Services provided in material conformity with this Agreement as such determination is made by the City Manager acting in the reasonable exercise of his/her discretion. The following Sections will
survive any expiration or termination of this Agreement: 14, 15, 16, 17, 19.2, 19.3, 19.4, 20, 25,
27, 28, 29 and 30. 19.4. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement, unless made
in accordance with Section 17 (Waivers). SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by
certified mail, addressed as follows:
To CITY: Office of the City Clerk City of Palo Alto Post Office Box 10250
Palo Alto, CA 94303
With a copy to the Purchasing Manager To CONSULTANT: Attention of the Project Manager at the address of
CONSULTANT recited on the first page of this Agreement.
CONSULTANT shall provide written notice to CITY of any change of address. SECTION 21. CONFLICT OF INTEREST.
21.1. In executing this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services.
21.2. CONSULTANT further covenants that, in the performance of this
Agreement, it will not employ subcontractors or other persons or parties having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the
State of California, as amended from time to time. CONSULTANT agrees to notify CITY if any
conflict arises. 21.3. If the CONSULTANT meets the definition of a “Consultant” as defined by the Regulations of the Fair Political Practices Commission, CONSULTANT will file the
appropriate financial disclosure documents required by the Palo Alto Municipal Code and the
Political Reform Act of 1974, as amended from time to time. SECTION 22. NONDISCRIMINATION; COMPLIANCE WITH ADA.
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22.1. As set forth in Palo Alto Municipal Code Section 2.30.510, as amended from time to time, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person due to that person’s race, skin color, gender, gender
identity, age, religion, disability, national origin, ancestry, sexual orientation, pregnancy, genetic
information or condition, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining
to nondiscrimination in employment.
22.2. CONSULTANT understands and agrees that pursuant to the Americans Disabilities Act (“ADA”), programs, services and other activities provided by a public entity to the public, whether directly or through a contractor or subcontractor, are required to be accessible
to the disabled public. CONSULTANT will provide the Services specified in this Agreement in a
manner that complies with the ADA and any other applicable federal, state and local disability rights laws and regulations, as amended from time to time. CONSULTANT will not discriminate against persons with disabilities in the provision of services, benefits or activities provided under this Agreement.
SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally Preferred Purchasing policies which are available at CITY’s Purchasing Department, hereby incorporated by reference and as amended from time to time. CONSULTANT shall comply with
waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero
Waste best practices include, first, minimizing and reducing waste; second, reusing waste; and, third, recycling or composting waste. In particular, CONSULTANT shall comply with the following Zero Waste requirements: (a) All printed materials provided by CONSULTANT to CITY generated from a
personal computer and printer including but not limited to, proposals, quotes, invoices, reports,
and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by CITY’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post-consumer material and printed with vegetable-based inks.
(b) Goods purchased by CONSULTANT on behalf of CITY shall be purchased in
accordance with CITY’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Department’s office. (c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no
additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from
the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE. CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62
(Citywide Minimum Wage), as amended from time to time. In particular, for any employee
otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code Section 4.62.030
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for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code Section 4.62.060.
SECTION 25. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of
the Charter of the City of Palo Alto and the Palo Alto Municipal Code, as amended from time to time. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this
Agreement are no longer available. This Section shall take precedence in the event of a conflict
with any other covenant, term, condition, or provision of this Agreement. SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS.
26.1. This Project is not subject to prevailing wages and related requirements. CONSULTANT is not required to pay prevailing wages and meet related requirements under the California Labor Code and California Code of Regulations in the performance and implementation of the Project if the contract:
(1) is not a public works contract;
(2) is for a public works construction project of $25,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j); or (3) is for a public works alteration, demolition, repair, or maintenance project of $15,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and
1773.3(j).
SECTION 27. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS”. For purposes of this Section 27, a “9204 Public Works Project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public
improvement of any kind. (Cal. Pub. Cont. Code § 9204.) Per California Public Contract Code
Section 9204, for Public Works Projects, certain claims procedures shall apply, as set forth in Exhibit F, entitled “Claims for Public Contract Code Section 9204 Public Works Projects”. This Project is not a 9204 Public Works Project.
SECTION 28. CONFIDENTIAL INFORMATION. 28.1. In the performance of this Agreement, CONSULTANT may have access to CITY’s Confidential Information (defined below). CONSULTANT will hold Confidential
Information in strict confidence, not disclose it to any third party, and will use it only for the
performance of its obligations to CITY under this Agreement and for no other purpose. CONSULTANT will maintain reasonable and appropriate administrative, technical and physical safeguards to ensure the security, confidentiality and integrity of the Confidential Information. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to its
employees, agents and subcontractors, if any, to the extent they have a need to know in order to
perform CONSULTANT’s obligations to CITY under this Agreement and for no other purpose, provided that the CONSULTANT informs them of, and requires them to follow, the confidentiality and security obligations of this Agreement.
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28.2. “Confidential Information” means all data, information (including without limitation “Personal Information” about a California resident as defined in Civil Code Section 1798 et seq., as amended from time to time) and materials, in any form or media, tangible or
intangible, provided or otherwise made available to CONSULTANT by CITY, directly or
indirectly, pursuant to this Agreement. Confidential Information excludes information that CONSULTANT can show by appropriate documentation: (i) was publicly known at the time it was provided or has subsequently become publicly known other than by a breach of this Agreement; (ii) was rightfully in CONSULTANT’s possession free of any obligation of
confidence prior to receipt of Confidential Information; (iii) is rightfully obtained by
CONSULTANT from a third party without breach of any confidentiality obligation; (iv) is independently developed by employees of CONSULTANT without any use of or access to the Confidential Information; or (v) CONSULTANT has written consent to disclose signed by an authorized representative of CITY.
28.3. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to the extent required by order of a court of competent jurisdiction or governmental body, provided that CONSULTANT will notify CITY in writing of such order immediately upon receipt and prior to any such disclosure (unless CONSULTANT is prohibited by law from doing
so), to give CITY an opportunity to oppose or otherwise respond to such order.
28.4. CONSULTANT will notify City promptly upon learning of any breach in the security of its systems or unauthorized disclosure of, or access to, Confidential Information in its possession or control, and if such Confidential Information consists of Personal Information,
CONSULTANT will provide information to CITY sufficient to meet the notice requirements of
Civil Code Section 1798 et seq., as applicable, as amended from time to time. 28.5. Prior to or upon termination or expiration of this Agreement, CONSULTANT will honor any request from the CITY to return or securely destroy all copies of
Confidential Information. All Confidential Information is and will remain the property of the CITY
and nothing contained in this Agreement grants or confers any rights to such Confidential Information on CONSULTANT. 28.6. If selected in Section 30 (Exhibits), this Agreement is also subject to the
terms and conditions of the Information Privacy Policy and Cybersecurity Terms and Conditions.
SECTION 29. MISCELLANEOUS PROVISIONS. 29.1. This Agreement will be governed by California law, without regard to its
conflict of law provisions.
29.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California.
29.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys’ fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value
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of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties. 29.4. This Agreement, including all exhibits, constitutes the entire and integrated
agreement between the parties with respect to the subject matter of this Agreement, and supersedes
all prior agreements, negotiations, representations, statements and undertakings, either oral or written. This Agreement may be amended only by a written instrument, which is signed by the authorized representatives of the parties and approved as required under Palo Alto Municipal Code, as amended from time to time.
29.5. If a court of competent jurisdiction finds or rules that any provision of this Agreement is void or unenforceable, the unaffected provisions of this Agreement will remain in full force and effect.
29.6. In the event of a conflict between the terms of this Agreement and the
exhibits hereto (per Section 30) or CONSULTANT’s proposal (if any), the Agreement shall control. In the event of a conflict between the exhibits hereto and CONSULTANT’s proposal (if any), the exhibits shall control.
29.7. The provisions of all checked boxes in this Agreement shall apply to this
Agreement; the provisions of any unchecked boxes shall not apply to this Agreement. 29.8. All section headings contained in this Agreement are for convenience and reference only and are not intended to define or limit the scope of any provision of this Agreement.
29.9. This Agreement may be signed in multiple counterparts, which, when executed by the authorized representatives of the parties, shall together constitute a single binding agreement.
SECTION 30. EXHIBITS. Each of the following exhibits, if the check box for such exhibit is
selected below, is hereby attached and incorporated into this Agreement by reference as though fully set forth herein: EXHIBIT A: SCOPE OF SERVICES
EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER
EXHIBIT B: SCHEDULE OF PERFORMANCE EXHIBIT C: COMPENSATION EXHIBIT C-1: SCHEDULE OF RATES EXHIBIT D: INSURANCE REQUIREMENTS
THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS ARE ATTACHED.
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CONTRACT NO. C25189412D SIGNATURE PAGE IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement as of the date first above written.
CITY OF PALO ALTO
____________________________ City Manager
APPROVED AS TO FORM: __________________________
City Attorney or designee
ENERGY AND ENVIRONMENTAL ECONOMICS, INC.
By:_________________________________
Name:_______________________________ Title: _______________________________
By:_________________________________ Name:_______________________________
Title: _______________________________
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Managing Partner
Amber Mahone
Secretary
Kate Nguyen
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EXHIBIT A SCOPE OF SERVICES CONSULTANT shall provide the Services detailed in this Exhibit A, entitled “SCOPE OF
SERVICES”. Notwithstanding any provision herein to the contrary, CONSULTANT’s duties
and services described in this Scope of Services shall not include preparing or assisting CITY with any portion of CITY’s preparation of a request for proposals, request for qualifications, or any other solicitation regarding a subsequent or additional contract with CITY. CITY shall at all times retain responsibility for public contracting, including with respect to any subsequent phase
of this project. CONSULTANT’s participation in the planning, discussions, or drawing of
project plans or specifications shall be limited to conceptual, preliminary, or initial plans or specifications. CONSULTANT shall cooperate with CITY to ensure that all bidders for a subsequent contract on any subsequent phase of this project have access to the same information, including all conceptual, preliminary, or initial plans or specifications prepared by
CONSULTANT pursuant to this Scope of Services.
Services provided under this Agreement will be done on a Task Order basis, and no specific work is authorized by entering into this Agreement without the authorization of Task Orders for specific projects. The scope, budget, and final deliverables for each project under this Agreement
will be agreed upon by the CONSULTANT and CITY before each task begins. CONSULTANT
shall only be compensated for Services performed under an authorized Task Order and CITY may elect, but is not required, to authorize work up to the maximum compensation amount set forth in Section 4.
The general type of projects under this Agreement may include, but are not limited to:
1. Valuing the benefits of flexible and distributed technologies like rooftop solar PV, battery energy storage, vehicle to grid, efficient electrification, and other strategies in reducing utility electric supply and distribution system costs and in enhancing customer resiliency.
2. Identification of ways to utilize efficient electrification technologies such as low powered
EV chargers, circuit pausers and circuit sharing, smart electrical panels, and whole home back-up switches to lower electrical system upgrade costs of homes. 3. Quantifying the value of resiliency for residents and non-residents. 4. Analyzing the resiliency strategies currently available to residents, such as backup
generators, solar and energy storage, and emergency preparation; and analyzing
prospective strategies such as vehicle to home technology 5. Developing a list of potential resiliency programs and projects the City and its electric utility could take to enhance electric resiliency for the community, developing estimates of staff time and budgets needed to evaluate each approach in more depth, and
developing preliminary cost and value estimates of implementation of each approach
where feasible. 6. Evaluating equitable or community-based approaches to the above program (#5 above) focused on low-income residents, critical facilities, or emergency facilities. 7. Evaluating microgrid strategies for the City, its electric utility, and utility customers.
8. Other Distributed Energy Resources (DER) related evaluation.
9. Ways to communicate the benefit and to encourage the utilization efficient electrification technologies such as low powered EV chargers, circuit pausers and circuit sharing, smart
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electrical panels, and whole home back-up switch to lower electrical system upgrade costs of homes.
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EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER
CONSULTANT shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into this Task Order by this reference. CONSULTANT shall furnish the necessary facilities, professional, technical
and supporting personnel required by this Task Order as described below.
CONTRACT NO. OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE) 1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): 1B. TASK ORDER NO.: 2. CONSULTANT NAME: 3. PERIOD OF PERFORMANCE: START: COMPLETION: 4 TOTAL TASK ORDER PRICE: $__________________ BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $_______________ 5. BUDGET CODE_______________ COST CENTER________________ COST ELEMENT______________ WBS/CIP__________ PHASE__________ 6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:_____________________________________ 7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A) MUST INCLUDE:
SERVICES AND DELIVERABLES TO BE PROVIDED
SCHEDULE OF PERFORMANCE
MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)
REIMBURSABLE EXPENSES, if any (with “not to exceed” amount) 8. ATTACHMENTS: A: Task Order Scope of Services B (if any): _____________________________
I hereby authorize the performance of the work described in this Task Order. APPROVED: CITY OF PALO ALTO BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________
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:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________
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EXHIBIT B SCHEDULE OF PERFORMANCE The schedule of performance shall be as provided in the approved Task Order, as detailed in
Exhibit A (Scope of Services) in the case of on-call Services, or as detailed in Section 4 in the case
of Additional Services, provided in all cases that the schedule of performance shall fall within the term as provided in Section 2 (Term) of this Agreement.
Optional Schedule of Performance Provision for On-Call or Additional Services Agreements.
(This provision only applies if checked and only applies to on-call agreements per Section 1 or agreements with Additional Services per Section 4.)
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EXHIBIT C COMPENSATION
CITY agrees to compensate CONSULTANT for the Services performed in accordance with the terms and conditions of this Agreement, including Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4 of the Agreement), based on the hourly rate schedule attached as Exhibit C-1.
The compensation to be paid to CONSULTANT under this Agreement for all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), shall not exceed the amount(s) stated in Section 4 of this Agreement. CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4),
within this/these amount(s). Any work performed or expenses incurred for which payment would
result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY. REIMBURSABLE EXPENSES
CONSULTANT’S ordinary business expenses, such as administrative, overhead, administrative support time/overtime, information systems, software and hardware, photocopying, telecommunications (telephone, internet), in-house printing, insurance and other ordinary business expenses, are included within the scope of payment for Services and
are not reimbursable expenses hereunder.
Reimbursable expenses, if any are specified as reimbursable under this section, will be reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be reimbursed are: NONE up to the not-to-exceed amount of: $0.00.
A. Travel outside the San Francisco Bay Area, including transportation and meals, if specified as reimbursable, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses.
B. Long distance telephone service charges, cellular phone service charges, facsimile
transmission and postage charges, if specified as reimbursable, will be reimbursed at actual cost. All requests for reimbursement of expenses, if any are specified as reimbursable under this
section, shall be accompanied by appropriate backup documentation and information.
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EXHIBIT C-1 SCHEDULE OF RATES
CONSULTANT’s schedule of rates is as follows:
Title $/hour
Founding Partner $675
Managing Partner $565
Senior Partner $565 Partner $520
Senior Director $475
Director $455
Associate Director $430
Senior Managing Consultant $400
Managing Consultant $365 Senior Consultant $325
Consultant $270
Associate $235
Analyst $180
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EXHIBIT D INSURANCE REQUIREMENTS
CONSULTANTS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS AS SPECIFIED HEREIN.
REQUIRED TYPE OF COVERAGE REQUIREMENT
MINIMUM LIMITS
EACH OCCURRENCE AGGREGATE
YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY STATUTORY STATUTORY
YES
GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY
BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED.
$1,000,000 $1,000,000 $1,000,000
$1,000,000 $1,000,000 $1,000,000
YES
AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED
BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED
$1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
$1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
YES
PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE
ALL DAMAGES $1,000,000
YES
THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONSULTANT, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONSULTANT AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES.
I. INSURANCE COVERAGE MUST INCLUDE: A. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONSULTANT’S AGREEMENT TO INDEMNIFY CITY. II. THE CONSULTANT MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING EMAIL: PURCHASINGSUPPORT@CITYOFPALOALTO.ORG III. ENDORSEMENT PROVISIONS WITH RESPECT TO THE INSURANCE AFFORDED TO ADDITIONAL INSUREDS: A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS.
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B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. EVIDENCE OF INSURANCE AND OTHER RELATED NOTICES ARE REQUIRED TO BE FILED WITH THE CITY OF PALO ALTO SENT TO THE FOLLOWING EMAIL: PURCHASINGSUPPORT@CITYOFPALOALTO.ORG
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Planning and Development Services
Meeting Date: September 23, 2024
Report #:2408-3421
TITLE
Approve a Revised Project Boundary for the Ongoing Downtown Housing Plan Project. CEQA
Status: Exempt per 15061(b)(3)
RECOMMENDATION
The Housing Ad Hoc Committee and staff recommend that the City Council approve the revised
boundary of the Downtown Housing Plan.
BACKGROUND
On January 13, 2020, the City Council designated the University Avenue/ Downtown area as a
Priority Development Area (PDA). This designation, later approved by the Association of Bay
Area Governments (ABAG), encompasses approximately 206 acres within a half-mile radius of
the University Avenue Caltrain Station. The PDA was established to guide growth around transit
facilities and connect housing to jobs and areas of interest, in alignment with the City’s
Comprehensive Plan, Housing Element, and the Sustainability and Climate Action Plan’s goals.
The Metropolitan Transportation Commission (MTC) awarded the City of Palo Alto an $800,000
grant for the preparation of the Downtown Housing Plan upon approval of the designated PDA.
The Plan is intended to focus on increasing housing production, including affordable housing, in
the downtown area, implementing policies of the City’s Comprehensive Plan and the Housing
Element through extensive community engagement, technical, design, and planning work by
qualified consultants.
In March 2022, an RFP was issued outlining the scope of work for the Downtown Housing Plan,
and the City Council approved Wallace Roberts and Todd as primary consultants to complete
the Downtown Housing Plan in February 2024. The project team officially kicked-off the project
in March 2024. Since the project start date, the consultant team has conducted research and
documented existing conditions and regulations, held a site visit, and coordinated with the
project Technical Advisory Group, which is comprised of interdepartmental City staff and
partner agencies. Preliminary stakeholder interviews have been completed, and broader
community outreach, including a Community Workshop and survey, will commence in Fall of
2024. The Community Advisory Group selection process is underway.
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ANALYSIS
Current and Proposed Plan Boundaries
The current Downtown Housing Plan boundary (Attachment A) focuses on approximately 76
acres within the University Avenue/ Downtown PDA. The geographic focus includes:
•The area roughly bounded by the Caltrain tracks to the south, Tasso Street to the north,
Lytton Avenue to the west, and Forest Avenue to the east; and
•19 parcels designated as housing opportunity sites.
Attachment A: Current Downtown Housing
Plan Boundary
Attachment B: Revised Downtown Housing
Plan Boundary
The revised Downtown Housing Plan boundary (Attachment B) would result in the inclusion of
16 additional sites that are designated opportunity sites in the Housing Element. The revised
boundary will include expansions in the following areas:
•North: Additional areas to the north of Tasso Street between Lytton and University
Avenues. Two additional housing opportunity sites northwest of the Lytton
Avenue/Cowper Street intersection.
•East: Expansion to include one opportunity site on Cowper Street and five opportunity
sites in an area bounded by High Street, Hamilton Avenue, Ramona Street, and Forest
Avenue.
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•West: Expansion to include one opportunity site on Cowper Street and one site on
Bryant. Expansion in the general vicinity of Everett Avenue along Emerson Street, High
Street, and Alma Street to include a total of five additional opportunity sites.
•South: No modification.
Purpose of Boundary Expansion
Staff has identified the following benefits in expanding the Plan boundary to include adjacent
opportunity sites identified in the certified Housing Element.
This expansion aims to:
•Align with PDA and Comprehensive Plan goals: The expanded boundary will adhere to
the PDA boundary approved by the City Council and MTC. The MTC has reviewed the
boundary expansion and has indicated concurrence with staff’s recommendation on
expansion. The expanded boundary will also further the Comprehensive Plan policies of
stimulating housing near transit (L-2.4) and creating opportunities for new mixed-use
development consisting of housing and retail (L-2.6).
•Align with Housing Element Opportunity Sites: The Housing Element opportunity sites
were not identified when the City Council approved the Downtown Housing Plan
boundary in 2020, and the boundary expansion will achieve greater consistency with the
Housing Element by incorporating nearby opportunity sites.
•Increase Housing Production: By including additional opportunity sites, the Plan can
build upon the analysis completed in the Housing Element and evaluate a greater
geographic area within walking distance from to the Palo Alto Caltrain Station,
furthering the Housing Element’s goal of increasing overall housing units in downtown.
By including additional opportunity sites in the boundary, the Plan could also evaluate
development strategies for the sites.
FISCAL/RESOURCE IMPACT
The change in boundary has no material effect on the project budget and requires no additional
funding beyond what has been allocated for the project.
STAKEHOLDER ENGAGEMENT
The preparation of the Plan involves extensive community and stakeholder outreach, and the
project team has tentatively scheduled the first community workshop on October 10, 2024, and
a Community Advisory Group meeting will also be held in Fall of 2024. Finalization of the
boundary is an important step to complete prior to the initiation of broad community outreach,
as project messaging should be consistent throughout the duration of the project.
ENVIRONMENTAL REVIEW
The actions recommended in this report are exempt from review under the California
Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) because it
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can be seen with certainty that there is no possibility that adjusting plan boundaries may have a
significant impact on the environment. The City will prepare an environmental analysis for the
Downtown Housing Plan when more project specifics have been identified.
ATTACHMENTS
Attachment A: Current Downtown Housing Plan Boundary
Attachment B: Revised Downtown Housing Plan Boundary
APPROVED BY:
Jonathan Lait, Planning and Development Services Director
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0.5 MILE WALK
PALO ALTOSTATION
ALMA ST
TASSO ST
KIPLING ST
HIGH ST
EMERSON ST
RAMONA ST
BRYANT ST
WAVERLY ST
COWPER ST
WEBSTER ST
FOREST AVE
HAMILTON AVE
UNIVERSITY AVE
LYTTON AVE
EVERETT AVE
FLOREN CE ST
EL CAMINO REAL
0 250 500Feet
Housing Element Sites
Station
Rail Corridor
Existing Plan Boundary
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0.5 MILE WALK
PALO ALTOSTATION
ALMA ST
TASSO ST
KIPLING ST
HIGH ST
EMERSON ST
RAMONA ST
BRYANT ST
WAVERLY ST
COWPER ST
WEBSTER ST
FOREST AVE
HAMILTON AVE
UNIVERSITY AVE
LYTTON AVE
EVERETT AVE
FLOREN CE ST
EL CAMINO REAL
0 250 500Feet
Housing Element Sites
Station
Rail Corridor
Existing Plan Boundary
Proposed Plan Boundary
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Downtown Housing Plan
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Planning and Development Services
Meeting Date: September 23, 2024
Report #:2408-3407
TITLE
Approval of Contract Amendment Number 3 to Seven Contracts in the amount of $750,000 for
On-Call Services to Provide Expertise for Long-Range Planning Projects, Application Processing,
Environmental Review, and Other Planning Analysis in the Planning and Development Services
Department. CEQA Status: Not a Project.
RECOMMENDATION
Staff recommends that the City Council approve and authorize the City Manager or designee to
execute amendments for the following seven contracts for long-range planning, application
processing, and historic and environmental review services in an amount not to exceed $750,000
and to extend the contract term for nine months. This amendment results in a revised total
contract not-to-exceed amount of $4.25 million through June 30, 2025.
a. Contract Amendment No. 3 C20178877A with Lexington Planning (Attachment A);
b. Contract Amendment No. 3 C20178878 with Metropolitan Planning Group (Attachment
B);
c. Contract Amendment No. 3 C20178879 with Arnold Mammarella, Architecture and
Consulting (Attachment C);
d. Contract Amendment No. 3 C20178881 with Page Southerland Page, Inc. (Attachment D);
e. Contract Amendment No. 3 C20178882 with Placeworks, Inc. (Attachment E);
f. Contract Amendment No. 3 C20178884 with Urban Planning Partners, Inc. (Attachment
F), and;
g. Contract Amendment No. 3 C20178891 with Michael Baker International, Inc.
(Attachment G).
EXECUTIVE SUMMARY
The action extends the contract authority and term; no additional budget is requested at this
time as funding to support this work is included in the approved FY 2025 Operating Budget. No
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work will be assigned to consultants under these contracts unless there is sufficient operating
budget to cover the costs.
The Planning and Development Services (PDS) Department relies on the use of on-call service
providers for project specific expertise and application processing for development activity.
Additional contract capacity is required at this time to provide continuity of services for work
related to current planning application processing, the parklet prototype study, the retail study,
and projects related to the Housing Element implementation. In addition, staff expect to utilize
available on-call providers to assist with Council priorities and to initiate anticipated projects until
June 2025 when a request for proposals (RFP) with an expanded scope is expected to be
completed.
BACKGROUND
The PDS Department relies on the use of on-call service providers for project-specific expertise
and application processing for development activity. In June 2020, the City Council approved
eight planning services on-call contracts1 for a combined not-to-exceed amount of $1.5 million
over a four-year period, through June 30, 2024. Although the original anticipated total not-to-
exceed amount was for $5.0 million, staff requested a reduced initial amount of $1.5 million given
the financial uncertainty at the time and notified Council of the need to return for additional
contract authority before the end of the contract term. In April 2023, the City Council approved
Amendment No. 12 which increased the not-to-exceed amount to $3.0 million. In April 2024, the
City Council approved Amendment No. 23 which increased the not-to-exceed amount to $3.5
million.
An updated RFP with expanded scope was expected to be completed for FY2025 but will instead
be implemented for FY2026 to allow for the inclusion of additional expertise such as housing,
transportation, and biological studies, land use economics, and wireless policy and standards.
While long-range planning is not fully fee-supported, fees from current planning projects offset
the consultant costs related to their corresponding projects. On-call contracts are utilized as
needed, contingent upon available funding within the annual Adopted Operating Budget.
ANALYSIS
On-call contracts provide expert service that is efficient, responsive, and available as needed. The
PDS Department’s use of on-call professionals offer a flexible solution to the City’s evolving
1 City Council, June 22, 2020; Agenda Item #10, SR# 11147,
https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/reports/city-manager-reports-
cmrs/year-archive/2020/id-11147.pdf
2 City Council, April 3, 2023; Agenda Item #10, SR# 2303-1145,
https://cityofpaloalto.primegov.com/Portal/viewer?id=1892&type=0
3 City Council, April 15, 2024; Agenda Item #10, SR#2402-2584,
https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=bf799eba-f2f7-456c-8697-f993ab652538
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needs, enabling staff to respond to the changing needs of the community while maintaining fiscal
prudence. Through the use of on-call providers, the City has the ability to scale services up or
down based on workload, staffing level, technical expertise, and economic conditions. This
approach ensures the continuity of services during staffing vacancies or peak application volume
and provides specialized expertise required for policy consideration as it relates to Council
priorities. Utilizing on-call consultants allows the department to avoid overstaffing for peak
application volume and specialized technical support.
Generally, staff will develop a scope of work and issue the project to the firm best suited to
execute on the work based on the qualifications such as experience, subject area
expertise, timeline, and cost. Each of the firms offer varying skills and services, so not all firms
are considered for all projects. The current contract not-to-exceed amount of $3.5 million has
been shared by the group of on-call professionals since June 2020. Shared work includes
application processing, individual reviews, SB9 case reviews, building plan check and permit
reviews, and subject matter expertise required for program and project support. Examples of
additional recent work performed related to City Council priorities includes the Housing Element,
state law handouts, North Ventura Coordinated Area Plan, El Camino Real massing model, retail
recovery study, parklet program, accessory dwelling unit guide, and bird safe ordinance
development.
Table 1: Planning On-Call Contracts Allocated or Spent through Amendment 2 (Since 2020)
To allow for continuity of services, staff is returning to the City Council to increase the not-to-
exceed amount by $750,000 for the completion of work in progress prior to the release of a new
RFP expected to be completed in the latter half of FY2025. Extension of the agreement until June
will allow staff to transition any ongoing work and projects to the new set of approved on-call
professionals. To date, the City has spent or allocated $3.3 million of the contract. The additional
contract capacity of $750,000 will support ongoing current planning application processing,
California Environmental Quality Act (CEQA) analysis for car free streets, FY 2025 Council
priorities and Housing Element implementation, including the retail zoning strategy, HS&EB 48,
and HS&EB 50.
FISCAL/RESOURCE IMPACT
Use of consultants for specific assistance is an efficient and effective use of resources, allowing
the department to quickly access needed technical skills. The cost of the contracts is offset by
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fees collected by the department for application processing, consistent with the FY 2025 Adopted
Municipal Fee Schedule.
The budget for these contracts is included in the PDS Department’s adopted budget. The use of
contractors for planning work is contingent on (1) approved contracts with capacity to support
the required scope, and (2) availability of funding in the department’s approved budget. Staff is
not requesting a budget increase. No work will be assigned to consultants under these contracts
unless there is sufficient operating budget to cover the costs.
STAKEHOLDER ENGAGEMENT
Professional planners and managers in the PDS Department participated in the development of
this recommendation, given departmental workload.
ENVIRONMENTAL REVIEW
Approval of these contracts is not a project under the California Environmental Quality Act
(CEQA); therefore, no environmental review is required.
ATTACHMENTS
Attachment A: Contract No. C20178877A with Lexington Planning
Attachment B: Contract No. C20178878 with Metropolitan Planning Group
Attachment C: Contract No. C20178879 with Arnold Mammarella, Architecture and Consulting
Attachment D: Contract No. C20178881 with Page Southerland Page, Inc.
Attachment E: Contract No. C20178882 with Placeworks, Inc.
Attachment F: Contract No. C20178884 with Urban Planning Partners, Inc.
Attachment G: Contract No. C20178891 with Michael Baker International, Inc.
APPROVED BY:
Jonathan Lait, Planning and Development Services Director
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AMENDMENT NO. 3 TO CONTRACT NO. C20178877A
BETWEEN THE CITY OF PALO ALTO AND LEXINGTON PLANNING LLC
This Amendment No. 3 (this “Amendment”) to Contract No. C20178877A (the “Contract”
as defined below) is entered into as of October 1, 2024, by and between the CITY OF PALO ALTO,
a California chartered municipal corporation (“CITY”), and LEXINGTON PLANNING LLC, a Vermont
limited liability company, located at P.O. Box 832, Middlebury, VT, 05753 (“CONSULTANT”). CITY
and CONSULTANT are referred to collectively as the “Parties” in this Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties
hereto for the provision of providing on-call planning support services, as detailed therein.
B. On June 22, 2020, the Contract was entered into as an aggregate amount, not-to-
exceed One Million Five Hundred Thousand Dollars ($1,500,000.00) over a four-year term
through June 30, 2024, across a total of eight (8) consultant agreements (C20178877A,
C20178878, C20178879, C20178881, C20178882, C20178883, C20178884, and C20178891), as
detailed therein
C. On April 3, 2023, the Contract was amended to increase the aggregate amount,
not-to-exceed Three Million Dollars ($3,000,000.00) over a four-year term through June 30, 2024,
across a total of seven (7) consultant agreements (C20178877A, C20178878, C20178879,
C20178881, C20178882, C20178884, and C20178891).
D. On April 1, 2024, the Contract was amended to extend the contract term by three
(3) months, from June 30, 2024 to September 30, 2024 and to increase the aggregate amount,
not-to-exceed to Three Million Five Hundred Thousand Dollars ($3,500,000.00) over four-year
and three-month term through September 30, 2024, across a total of seven (7) consultant
agreements (C20178877A, C20178878, C20178879, C20178881, C20178882, C20178884, and
C20178891).
E. The Parties now wish to amend all seven (7) consultant agreements (C20178877A,
C20178878, C20178879, C20178881, C20178882, C20178884, and C20178891) to extend the
contract term by nine (9) months, from September 30, 2024 to June 30, 2025, and to increase
the aggregate amount by Seven Hundred Fifty Thousand Dollars ($750,000.00), from Three
Million Five Hundred Thousand Dollars ($3,500,0000.00), to a not to exceed compensation
amount of Four Million Two Hundred Fifty Thousand Dollars ($4,250,000.00), as detailed herein.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions
of this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
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a. Contract. The term “Contract” shall mean Contract No. C20178877A
between CONSULTANT and CITY, dated June 22, 2020, as amended by:
Amendment No.1, dated April 3, 2023
Amendment No. 2, dated April 1, 2024
b. Other Terms. Capitalized terms used and not defined in this Amendment
shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 2. TERM of the Contract is hereby amended to read as follows:
“The term of this Agreement shall be from the date of its full execution through June 30, 2025,
unless terminated earlier pursuant to Section 19 of this Agreement.”
SECTION 3. Section 4. NOT TO EXCEED COMPENSATION of the Contract is hereby
amended to read as follows:
The compensation to be paid to CONSULTANT for performance of the Services described in
Exhibit A, is in an aggregate amount that shall not exceed Four Million Two Hundred Fifty
Thousand Dollars ($4,250,000.00) over the Term across a total of seven (7) consultant
agreements (C20178877A, C20178878, C20178879, C20178881, C20178882, C20178884, and
C20178891), of which this is one.
The seven contracts will be administered by the CITY’s PLANNING & DEVELOPMENT SERVICES to
ensure the total aggregate of compensation paid over the Term does not exceed the amounts
set forth herein. CONSULTANT acknowledges and agrees that the CITY is hiring seven (7)
consultants, including CONSULTANT, none of whom will be guaranteed or assured of any specific
quantity of work to be performed. If the work is performed by any one or more consultants,
including CONSULTANT, CITY will ensure that total compensation to all seven consultants
including CONSULTANT, will not exceed in aggregate, across all seven (7) consultant agreements,
and will not exceed in aggregate Four Million Two Hundred Fifty Thousand Dollars
($4,250,000.00).
CONSULTANT agrees to complete all Services described in Exhibit A, including reimbursable
expenses, are subject to a Maximum Total Compensation “NOT TO EXCEED” amount of Four
Million Two Hundred Fifty Thousand Dollars ($4,250,000.00) during the term of the agreement.
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.
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
Docusign Envelope ID: D83928FF-30E3-4008-9E8E-3C0C79548AA9
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which is not included within the Scope of Services described at Exhibit “A”. CITY and CONSULTANT
may at any time mutually agree to add new position titles, rates, and adjust listed rates in Exhibit
“C-1” so long as the changes do not increase the not to exceed amount.
SECTION 4. Legal Effect. Except as modified by this Amendment, all other provisions of
the Contract, including any exhibits thereto, shall remain in full force and effect.
SECTION 5. Incorporation of Recitals. The recitals set forth above are terms of this
Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
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SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives
executed this Amendment effective as of the date first above written.
CITY OF PALO ALTO
City Manager
APPROVED AS TO FORM:
City Attorney or designee
LEXINGTON PLANNING LLC
Officer 1
By:
Name: Jean Eisberg
Title: Principal
jean@lexingtonplanning.com
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AMENDMENT NO. 3 TO CONTRACT NO. C20178878
BETWEEN THE CITY OF PALO ALTO AND METROPOLITAN PLANNING GROUP
This Amendment No. 3 (this “Amendment”) to Contract No. C20178878 (the “Contract”
as defined below) is entered into as of October 1, 2024, by and between the CITY OF PALO ALTO,
a California chartered municipal corporation (“CITY”), and METROPOLITAN PLANNING GROUP, a
California corporation, located at 51 E. Campbell Ave #1247, Campbell, CA, 95009
(“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in this
Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties
hereto for the provision of providing on-call planning support services, as detailed therein.
B. On June 22, 2020, the Contract was entered into as an aggregate amount, not-to-
exceed One Million Five Hundred Thousand Dollars ($1,500,000.00) over a four-year term
through June 30, 2024, across a total of eight (8) consultant agreements (C20178877A,
C20178878, C20178879, C20178881, C20178882, C20178883, C20178884, and C20178891).
C. On April 3, 2023, the Contract was amended to increase the aggregate amount,
not-to-exceed Three Million Dollars ($3,000,000.00) over a four-year term through June 30, 2024,
across a total of seven (7) consultant agreements (C20178877A, C20178878, C20178879,
C20178881, C20178882, C20178884, and C20178891).
D. On April 1, 2024, the Contract was amended to extend the contract term by three
(3) months, from June 30, 2024 to September 30, 2024 and to increase the aggregate amount,
not-to-exceed to Three Million Five Hundred Thousand Dollars ($3,500,000.00) over four-year
and three-month term through September 30, 2024, across a total of seven (7) consultant
agreements (C20178877A, C20178878, C20178879, C20178881, C20178882, C20178884, and
C20178891).
E. The Parties now wish to amend all seven (7) consultant agreements (C20178877A,
C20178878, C20178879, C20178881, C20178882, C20178884, and C20178891) to extend the
contract term by nine (9) months, from September 30, 2024 to June 30, 2025, and to increase
the aggregate amount by Seven Hundred Fifty Thousand Dollars ($750,000.00), from Three
Million Five Hundred Thousand Dollars ($3,500,0000.00), to a not to exceed compensation
amount of Four Million Two Hundred Fifty Thousand Dollars ($4,250,000.00), as detailed herein.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions
of this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
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a. Contract. The term “Contract” shall mean Contract No. C20178878
between CONSULTANT and CITY, dated June 22, 2020, as amended by:
Amendment No. 1, dated April 3, 2023
Amendment No. 2, dated April 1, 2024
b. Other Terms. Capitalized terms used and not defined in this Amendment
shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 2. TERM of the Contract is hereby amended to read as follows:
“The term of this Agreement shall be from the date of its full execution through June 30, 2025,
unless terminated earlier pursuant to Section 19 of this Agreement.”
SECTION 3. Section 4. NOT TO EXCEED COMPENSATION of the Contract is hereby
amended to read as follows:
The compensation to be paid to CONSULTANT for performance of the Services described in
Exhibit A, is in an aggregate amount that shall not exceed Four Million Two Hundred Fifty
Thousand Dollars ($4,250,000.00) over the Term across a total of seven (7) consultant
agreements (C20178877A, C20178878, C20178879, C20178881, C20178882, C20178884, and
C20178891), of which this is one.
The seven contracts will be administered by the CITY’s PLANNING & DEVELOPMENT SERVICES to
ensure the total aggregate of compensation paid over the Term does not exceed the amounts
set forth herein. CONSULTANT acknowledges and agrees that the CITY is hiring seven (7)
consultants, including CONSULTANT, none of whom will be guaranteed or assured of any specific
quantity of work to be performed. If the work is performed by any one or more consultants,
including CONSULTANT, CITY will ensure that total compensation to all seven consultants
including CONSULTANT, will not exceed in aggregate, across all seven (7) consultant agreements,
and will not exceed in aggregate Four Million Two Hundred Fifty Thousand Dollars
($4,250,000.00).
CONSULTANT agrees to complete all Services described in Exhibit A, including reimbursable
expenses, are subject to a Maximum Total Compensation “NOT TO EXCEED” amount of Four
Million Two Hundred Fifty Thousand Dollars ($4,250,000.00) during the term of the agreement.
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.
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
Docusign Envelope ID: 324EF7D0-F389-4406-A722-C402A11038BC
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which is not included within the Scope of Services described at Exhibit “A”. CITY and CONSULTANT
may at any time mutually agree to add new position titles, rates, and adjust listed rates in Exhibit
“C-1” so long as the changes do not increase the not to exceed amount.
SECTION 4. Legal Effect. Except as modified by this Amendment, all other provisions of
the Contract, including any exhibits thereto, shall remain in full force and effect.
SECTION 5. Incorporation of Recitals. The recitals set forth above are terms of this
Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
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SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives
executed this Amendment effective as of the date first above written.
CITY OF PALO ALTO
City Manager
APPROVED AS TO FORM:
City Attorney or designee
METROPOLITAN PLANNING GROUP
Officer 1
By:
Name: Geoff Bradley
Title: President
gbradley@m-group.us
Officer 2
By:
Name: Heather Bradley
Title: Treasurer
hbradley@m-group.us
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AMENDMENT NO. 3 TO CONTRACT NO. C20178879
BETWEEN THE CITY OF PALO ALTO AND
ARNOLD MAMMARELLA ARCHITECTURE & CONSULTING
This Amendment No. 3 (this “Amendment”) to Contract No. C20178879 (the “Contract”
as defined below) is entered into as of October 1, 2024, by and between the CITY OF PALO ALTO,
a California chartered municipal corporation (“CITY”), and ARNOLD MAMMARELLA
ARCHITECTURE & CONSULTING, a sole proprietor, located at 1569 Solano Avenue, #411,
Berkeley, CA 94707 (“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the
“Parties” in this Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties
hereto for the provision of providing on-call planning support services, as detailed therein.
B. On June 22, 2020, the Contract was entered into as an aggregate amount, not-to-
exceed One Million Five Hundred Thousand Dollars ($1,500,000.00) over a four-year term
through June 30, 2024, across a total of eight (8) consultant agreements (C20178877A,
C20178878, C20178879, C20178881, C20178882, C20178883, C20178884, and C20178891), as
detailed therein
C. On April 3, 2023, the Contract was amended to increase the aggregate amount,
not-to-exceed Three Million Dollars ($3,000,000.00) over a four-year term through June 30, 2024,
across a total of seven (7) consultant agreements (C20178877A, C20178878, C20178879,
C20178881, C20178882, C20178884, and C20178891).
D. On April 1, 2024, the Contract was amended to extend the contract term by three
(3) months, from June 30, 2024 to September 30, 2024 and to increase the aggregate amount,
not-to-exceed to Three Million Five Hundred Thousand Dollars ($3,500,000.00) over four-year
and three-month term through September 30, 2024, across a total of seven (7) consultant
agreements (C20178877A, C20178878, C20178879, C20178881, C20178882, C20178884, and
C20178891).
E. The Parties now wish to amend all seven (7) consultant agreements (C20178877A,
C20178878, C20178879, C20178881, C20178882, C20178884, and C20178891) to extend the
contract term by nine (9) months, from September 30, 2024 to June 30, 2025, and to increase
the aggregate amount by Seven Hundred Fifty Thousand Dollars ($750,000.00), from Three
Million Five Hundred Thousand Dollars ($3,500,0000.00), to a not to exceed compensation
amount of Four Million Two Hundred Fifty Thousand Dollars ($4,250,000.00), as detailed herein.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions
of this Amendment, the Parties agree:
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No. C20178879 with
Arnold Mammarella,
Architecture and
Consulting
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SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean Contract No. C20178879
between CONSULTANT and CITY, dated June 22, 2020, as amended by:
Amendment No. 1, dated April 3, 2023
Amendment No. 2, dated April 1, 2024
b. Other Terms. Capitalized terms used and not defined in this Amendment
shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 2. TERM of the Contract is hereby amended to read as follows:
“The term of this Agreement shall be from the date of its full execution through June 30, 2025,
unless terminated earlier pursuant to Section 19 of this Agreement.”
SECTION 3. Section 4. NOT TO EXCEED COMPENSATION of the Contract is hereby
amended to read as follows:
The compensation to be paid to CONSULTANT for performance of the Services described in
Exhibit A, is in an aggregate amount that shall not exceed Four Million Two Hundred Fifty
Thousand Dollars ($4,250,000.00) over the Term across a total of seven (7) consultant
agreements (C20178877A, C20178878, C20178879, C20178881, C20178882, C20178884, and
C20178891), of which this is one.
The seven contracts will be administered by the CITY’s PLANNING & DEVELOPMENT SERVICES to
ensure the total aggregate of compensation paid over the Term does not exceed the amounts
set forth herein. CONSULTANT acknowledges and agrees that the CITY is hiring seven (7)
consultants, including CONSULTANT, none of whom will be guaranteed or assured of any specific
quantity of work to be performed. If the work is performed by any one or more consultants,
including CONSULTANT, CITY will ensure that total compensation to all seven consultants
including CONSULTANT, will not exceed in aggregate, across all seven (7) consultant agreements,
and will not exceed in aggregate Four Million Two Hundred Fifty Thousand Dollars
($4,250,000.00).
CONSULTANT agrees to complete all Services described in Exhibit A, including reimbursable
expenses, are subject to a Maximum Total Compensation “NOT TO EXCEED” amount of Four
Million Two Hundred Fifty Thousand Dollars ($4,250,000.00) during the term of the agreement.
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.
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
Docusign Envelope ID: AAF33DBB-B8F1-4892-B546-1761A11F9C28
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Attachment C - Contract
No. C20178879 with
Arnold Mammarella,
Architecture and
Consulting
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Page 3 of 4
work that is determined by CITY to be necessary for the proper completion of the Project, but
which is not included within the Scope of Services described at Exhibit “A”. CITY and CONSULTANT
may at any time mutually agree to add new position titles, rates, and adjust listed rates in Exhibit
“C-1” so long as the changes do not increase the not to exceed amount.
SECTION 4. Legal Effect. Except as modified by this Amendment, all other provisions of
the Contract, including any exhibits thereto, shall remain in full force and effect.
SECTION 5. Incorporation of Recitals. The recitals set forth above are terms of this
Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
Docusign Envelope ID: AAF33DBB-B8F1-4892-B546-1761A11F9C28
Item 6
Attachment C - Contract
No. C20178879 with
Arnold Mammarella,
Architecture and
Consulting
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SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives
executed this Amendment effective as of the date first above written.
CITY OF PALO ALTO
City Manager
APPROVED AS TO FORM:
City Attorney or designee
ARNOLD MAMMARELLA
ARCHITECTURE & CONSULTING
Officer 1
By:
Name: Arnold Mammarella
Title: Principal
arnold@mammarellaarchitecture.com
Docusign Envelope ID: AAF33DBB-B8F1-4892-B546-1761A11F9C28
Item 6
Attachment C - Contract
No. C20178879 with
Arnold Mammarella,
Architecture and
Consulting
Item 6: Staff Report Pg. 16 Packet Pg. 154 of 302
Vers.: Aug. 5, 2019
Page 1 of 4
AMENDMENT NO. 3 TO CONTRACT NO. C20178881
BETWEEN THE CITY OF PALO ALTO AND PAGE SOUTHERLAND PAGE, INC.
This Amendment No. 3 (this “Amendment”) to Contract No. C20178881 (the “Contract”
as defined below) is entered into as of October 1, 2024, by and between the CITY OF PALO ALTO,
a California chartered municipal corporation (“CITY”), and PAGE SOUTHERLAND PAGE, INC. a
Delaware corporation, located at 200 W. 6TH Street Suite 1800, Austin, TX 78701
(“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in this
Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties
hereto for the provision of providing on-call planning support services, as detailed therein.
B. On June 22, 2020, the Contract was entered into as an aggregate amount, not-to-
exceed One Million Five Hundred Thousand Dollars ($1,500,000.00) over a four-year term
through June 30, 2024, across a total of eight (8) consultant agreements (C20178877A,
C20178878, C20178879, C20178881, C20178882, C20178883, C20178884, and C20178891).
C. On April 3, 2023, the Contract was amended to increase the aggregate amount,
not-to-exceed Three Million Dollars ($3,000,000.00) over a four-year term through June 30, 2024,
across a total of seven (7) consultant agreements (C20178877A, C20178878, C20178879,
C20178881, C20178882, C20178884, and C20178891).
D. On April 1, 2024, the Contract was amended to extend the contract term by three
(3) months, from June 30, 2024 to September 30, 2024 and to increase the aggregate amount,
not-to-exceed to Three Million Five Hundred Thousand Dollars ($3,500,000.00) over four-year
and three-month term through September 30, 2024, across a total of seven (7) consultant
agreements (C20178877A, C20178878, C20178879, C20178881, C20178882, C20178884, and
C20178891).
E. The Parties now wish to amend all seven (7) consultant agreements (C20178877A,
C20178878, C20178879, C20178881, C20178882, C20178884, and C20178891) to extend the
contract term by nine (9) months, from September 30, 2024 to June 30, 2025, and to increase
the aggregate amount by Seven Hundred Fifty Thousand Dollars ($750,000.00), from Three
Million Five Hundred Thousand Dollars ($3,500,0000.00), to a not to exceed compensation
amount of Four Million Two Hundred Fifty Thousand Dollars ($4,250,000.00), as detailed herein.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions
of this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
Docusign Envelope ID: AC658E40-E410-4D8B-9625-D2130DC7922D
Item 6
Attachment D - Contract
No. C20178881 with Page
Southerland Page, Inc.
Item 6: Staff Report Pg. 17 Packet Pg. 155 of 302
Vers.: Aug. 5, 2019
Page 2 of 4
a. Contract. The term “Contract” shall mean Contract No. C20178881
between CONSULTANT and CITY, dated June 22, 2020, as amended by:
Amendment No. 1, dated April 3, 2023
Amendment No. 2, dated April 1, 2024
b. Other Terms. Capitalized terms used and not defined in this Amendment
shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 2. TERM of the Contract is hereby amended to read as follows:
“The term of this Agreement shall be from the date of its full execution through June 30, 2025,
unless terminated earlier pursuant to Section 19 of this Agreement.”
SECTION 3. Section 4. NOT TO EXCEED COMPENSATION of the Contract is hereby
amended to read as follows:
The compensation to be paid to CONSULTANT for performance of the Services described in
Exhibit A, is in an aggregate amount that shall not exceed Four Million Two Hundred Fifty
Thousand Dollars ($4,250,000.00) over the Term across a total of seven (7) consultant
agreements (C20178877A, C20178878, C20178879, C20178881, C20178882, C20178884, and
C20178891), of which this is one.
The seven contracts will be administered by the CITY’s PLANNING & DEVELOPMENT SERVICES to
ensure the total aggregate of compensation paid over the Term does not exceed the amounts
set forth herein. CONSULTANT acknowledges and agrees that the CITY is hiring seven (7)
consultants, including CONSULTANT, none of whom will be guaranteed or assured of any specific
quantity of work to be performed. If the work is performed by any one or more consultants,
including CONSULTANT, CITY will ensure that total compensation to all seven consultants
including CONSULTANT, will not exceed in aggregate, across all seven (7) consultant agreements,
and will not exceed in aggregate Four Million Two Hundred Fifty Thousand Dollars
($4,250,000.00).
CONSULTANT agrees to complete all Services described in Exhibit A, including reimbursable
expenses, are subject to a Maximum Total Compensation “NOT TO EXCEED” amount of Four
Million Two Hundred Fifty Thousand Dollars ($4,250,000.00) during the term of the agreement.
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.
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
Docusign Envelope ID: AC658E40-E410-4D8B-9625-D2130DC7922D
Item 6
Attachment D - Contract
No. C20178881 with Page
Southerland Page, Inc.
Item 6: Staff Report Pg. 18 Packet Pg. 156 of 302
Vers.: Aug. 5, 2019
Page 3 of 4
which is not included within the Scope of Services described at Exhibit “A”. CITY and CONSULTANT
may at any time mutually agree to add new position titles, rates, and adjust listed rates in Exhibit
“C-1” so long as the changes do not increase the not to exceed amount.
SECTION 4. Legal Effect. Except as modified by this Amendment, all other provisions of
the Contract, including any exhibits thereto, shall remain in full force and effect.
SECTION 5. Incorporation of Recitals. The recitals set forth above are terms of this
Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
Docusign Envelope ID: AC658E40-E410-4D8B-9625-D2130DC7922D
Item 6
Attachment D - Contract
No. C20178881 with Page
Southerland Page, Inc.
Item 6: Staff Report Pg. 19 Packet Pg. 157 of 302
Vers.: Aug. 5, 2019
Page 4 of 4
SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives
executed this Amendment effective as of the date first above written.
CITY OF PALO ALTO
City Manager
APPROVED AS TO FORM:
City Attorney or designee
PAGE SOUTHERLAND PAGE, INC.
Officer 1
By:
Name: Elizabeth Foster
Title: Vice President
efoster@pagethink.com
Officer 2
By:
Name: Barbara Maloney
Title: Vice President
bmaloney@pagethink.com
Docusign Envelope ID: AC658E40-E410-4D8B-9625-D2130DC7922D
Item 6
Attachment D - Contract
No. C20178881 with Page
Southerland Page, Inc.
Item 6: Staff Report Pg. 20 Packet Pg. 158 of 302
Vers.: Aug. 5, 2019
Page 1 of 4
AMENDMENT NO. 3 TO CONTRACT NO. C20178882
BETWEEN THE CITY OF PALO ALTO AND PLACEWORKS, INC.
This Amendment No. 3 (this “Amendment”) to Contract No. C20178882 (the “Contract”
as defined below) is entered into as of October 1, 2024, by and between the CITY OF PALO ALTO,
a California chartered municipal corporation (“CITY”), and PLACEWORKS, INC., a California
corporation, located at 3 MacArthur Place, Suite 1100, Santa Ana, CA 92707 (“CONSULTANT”).
CITY and CONSULTANT are referred to collectively as the “Parties” in this Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties
hereto for the provision of providing on-call planning support services, as detailed therein.
B. On June 22, 2020, the Contract was entered into as an aggregate amount, not-to-
exceed One Million Five Hundred Thousand Dollars ($1,500,000.00) over a four-year term
through June 30, 2024, across a total of eight (8) consultant agreements (C20178877A,
C20178878, C20178879, C20178881, C20178882, C20178883, C20178884, and C20178891), as
detailed therein
C. On April 3, 2023, the Contract was amended to increase the aggregate amount,
not-to-exceed Three Million Dollars ($3,000,000.00) over a four-year term through June 30, 2024,
across a total of seven (7) consultant agreements (C20178877A, C20178878, C20178879,
C20178881, C20178882, C20178884, and C20178891) as detailed therein.
D. On April 1, 2024, the Contract was amended to extend the contract term by three
(3) months, from June 30, 2024 to September 30, 2024 and to increase the aggregate amount,
not-to-exceed to Three Million Five Hundred Thousand Dollars ($3,500,000.00) over four-year
and three-month term through September 30, 2024, across a total of seven (7) consultant
agreements (C20178877A, C20178878, C20178879, C20178881, C20178882, C20178884, and
C20178891).
E. The Parties now wish to amend all seven (7) consultant agreements (C20178877A,
C20178878, C20178879, C20178881, C20178882, C20178884, and C20178891) to extend the
contract term by nine (9) months, from September 30, 2024 to June 30, 2025, and to increase
the aggregate amount by Seven Hundred Fifty Thousand Dollars ($750,000.00), from Three
Million Five Hundred Thousand Dollars ($3,500,0000.00), to a not to exceed compensation
amount of Four Million Two Hundred Fifty Thousand Dollars ($4,250,000.00), as detailed herein.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions
of this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
Docusign Envelope ID: 2E203AC0-F770-4D07-8AF8-DCCF95C3C883
Item 6
Attachment E - Contract
No. C20178882 with
Placeworks, Inc.
Item 6: Staff Report Pg. 21 Packet Pg. 159 of 302
Vers.: Aug. 5, 2019
Page 2 of 4
a. Contract. The term “Contract” shall mean Contract No. C20178882
between CONSULTANT and CITY, dated June 22, 2020, as amended by:
Amendment No. 1, dated April 3, 2023
Amendment No. 2, dated April 1, 2024
b. Other Terms. Capitalized terms used and not defined in this Amendment
shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 2. TERM of the Contract is hereby amended to read as follows:
“The term of this Agreement shall be from the date of its full execution through June 30, 2025,
unless terminated earlier pursuant to Section 19 of this Agreement.”
SECTION 3. Section 4. NOT TO EXCEED COMPENSATION of the Contract is hereby
amended to read as follows:
The compensation to be paid to CONSULTANT for performance of the Services described in
Exhibit A, is in an aggregate amount that shall not exceed Four Million Two Hundred Fifty
Thousand Dollars ($4,250,000.00) over the Term across a total of seven (7) consultant
agreements (C20178877A, C20178878, C20178879, C20178881, C20178882, C20178884, and
C20178891), of which this is one.
The seven contracts will be administered by the CITY’s PLANNING & DEVELOPMENT SERVICES to
ensure the total aggregate of compensation paid over the Term does not exceed the amounts
set forth herein. CONSULTANT acknowledges and agrees that the CITY is hiring seven (7)
consultants, including CONSULTANT, none of whom will be guaranteed or assured of any specific
quantity of work to be performed. If the work is performed by any one or more consultants,
including CONSULTANT, CITY will ensure that total compensation to all seven consultants
including CONSULTANT, will not exceed in aggregate, across all seven (7) consultant agreements,
and will not exceed in aggregate Four Million Two Hundred Fifty Thousand Dollars
($4,250,000.00).
CONSULTANT agrees to complete all Services described in Exhibit A, including reimbursable
expenses, are subject to a Maximum Total Compensation “NOT TO EXCEED” amount of Four
Million Two Hundred Fifty Thousand Dollars ($4,250,000.00) during the term of the agreement.
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.
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
Docusign Envelope ID: 2E203AC0-F770-4D07-8AF8-DCCF95C3C883
Item 6
Attachment E - Contract
No. C20178882 with
Placeworks, Inc.
Item 6: Staff Report Pg. 22 Packet Pg. 160 of 302
Vers.: Aug. 5, 2019
Page 3 of 4
work that is determined by CITY to be necessary for the proper completion of the Project, but
which is not included within the Scope of Services described at Exhibit “A”. CITY and CONSULTANT
may at any time mutually agree to add new position titles, rates, and adjust listed rates in Exhibit
“C-1” so long as the changes do not increase the not to exceed amount.
SECTION 4. Legal Effect. Except as modified by this Amendment, all other provisions of
the Contract, including any exhibits thereto, shall remain in full force and effect.
SECTION 5. Incorporation of Recitals. The recitals set forth above are terms of this
Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
Docusign Envelope ID: 2E203AC0-F770-4D07-8AF8-DCCF95C3C883
Item 6
Attachment E - Contract
No. C20178882 with
Placeworks, Inc.
Item 6: Staff Report Pg. 23 Packet Pg. 161 of 302
Vers.: Aug. 5, 2019
Page 4 of 4
SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives
executed this Amendment effective as of the date first above written.
CITY OF PALO ALTO
City Manager
APPROVED AS TO FORM:
City Attorney or designee
PLACEWORKS, INC.
Officer 1
By:
Name: Kara L Kosel
Title: Finance/CFO
kkosel@placeworks.com
Officer 2
By:
Name: Randal W. Jackson
Title: President
rjackson@placeworks.com
Docusign Envelope ID: 2E203AC0-F770-4D07-8AF8-DCCF95C3C883
Item 6
Attachment E - Contract
No. C20178882 with
Placeworks, Inc.
Item 6: Staff Report Pg. 24 Packet Pg. 162 of 302
Vers.: Aug. 5, 2019
Page 1 of 4
AMENDMENT NO. 3 TO CONTRACT NO. C20178884
BETWEEN THE CITY OF PALO ALTO AND URBAN PLANNING PARTNERS, INC.
This Amendment No. 3 (this “Amendment”) to Contract No. C20178884 (the “Contract”
as defined below) is entered into as of October 1, 2024, by and between the CITY OF PALO ALTO,
a California chartered municipal corporation (“CITY”), and URBAN PLANNING PARTNERS, INC., a
California corporation, located at 388 17th Street, Suite 230, Oakland, CA 94612
(“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in this
Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties
hereto for the provision of providing on-call planning support services, as detailed therein.
B. On June 22, 2020, the Contract was entered into as an aggregate amount, not-to-
exceed One Million Five Hundred Thousand Dollars ($1,500,000.00) over a four-year term
through June 30, 2024, across a total of eight (8) consultant agreements (C20178877A,
C20178878, C20178879, C20178881, C20178882, C20178883, C20178884, and C20178891), as
detailed therein
C. On April 3, 2023, the Contract was amended to increase the aggregate amount,
not-to-exceed Three Million Dollars ($3,000,000.00) over a four-year term through June 30, 2024,
across a total of seven (7) consultant agreements (C20178877A, C20178878, C20178879,
C20178881, C20178882, C20178884, and C20178891).
D. On April 1, 2024, the Contract was amended to extend the contract term by three
(3) months, from June 30, 2024 to September 30, 2024 and to increase the aggregate amount,
not-to-exceed to Three Million Five Hundred Thousand Dollars ($3,500,000.00) over four-year
and three-month term through September 30, 2024, across a total of seven (7) consultant
agreements (C20178877A, C20178878, C20178879, C20178881, C20178882, C20178884, and
C20178891).
E. The Parties now wish to amend all seven (7) consultant agreements (C20178877A,
C20178878, C20178879, C20178881, C20178882, C20178884, and C20178891) to extend the
contract term by nine (9) months, from September 30, 2024 to June 30, 2025, and to increase
the aggregate amount by Seven Hundred Fifty Thousand Dollars ($750,000.00), from Three
Million Five Hundred Thousand Dollars ($3,500,0000.00), to a not to exceed compensation
amount of Four Million Two Hundred Fifty Thousand Dollars ($4,250,000.00), as detailed herein.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions
of this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
Docusign Envelope ID: D75E52C0-9981-4C9F-91A3-0D0583FADF53
Item 6
Attachment F - Contract
No. C20178884 with
Urban Planning Partners,
Inc.
Item 6: Staff Report Pg. 25 Packet Pg. 163 of 302
Vers.: Aug. 5, 2019
Page 2 of 4
a. Contract. The term “Contract” shall mean Contract No. C20178883
between CONSULTANT and CITY, dated June 22, 2020, as amended by:
Amendment No. 1, dated April 3, 2023
Amendment No. 2, dated April 1, 2024
b. Other Terms. Capitalized terms used and not defined in this Amendment
shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 2. TERM of the Contract is hereby amended to read as follows:
“The term of this Agreement shall be from the date of its full execution through June 30, 2025,
unless terminated earlier pursuant to Section 19 of this Agreement.”
SECTION 3. Section 4. NOT TO EXCEED COMPENSATION of the Contract is hereby
amended to read as follows:
The compensation to be paid to CONSULTANT for performance of the Services described in
Exhibit A, is in an aggregate amount that shall not exceed Four Million Two Hundred Fifty
Thousand Dollars ($4,250,000.00) over the Term across a total of seven (7) consultant
agreements (C20178877A, C20178878, C20178879, C20178881, C20178882, C20178884, and
C20178891), of which this is one.
The seven contracts will be administered by the CITY’s PLANNING & DEVELOPMENT SERVICES to
ensure the total aggregate of compensation paid over the Term does not exceed the amounts
set forth herein. CONSULTANT acknowledges and agrees that the CITY is hiring seven (7)
consultants, including CONSULTANT, none of whom will be guaranteed or assured of any specific
quantity of work to be performed. If the work is performed by any one or more consultants,
including CONSULTANT, CITY will ensure that total compensation to all seven consultants
including CONSULTANT, will not exceed in aggregate, across all seven (7) consultant agreements,
and will not exceed in aggregate Four Million Two Hundred Fifty Thousand Dollars
($4,250,000.00).
CONSULTANT agrees to complete all Services described in Exhibit A, including reimbursable
expenses, are subject to a Maximum Total Compensation “NOT TO EXCEED” amount of Four
Million Two Hundred Fifty Thousand Dollars ($4,250,000.00) during the term of the agreement.
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.
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
Docusign Envelope ID: D75E52C0-9981-4C9F-91A3-0D0583FADF53
Item 6
Attachment F - Contract
No. C20178884 with
Urban Planning Partners,
Inc.
Item 6: Staff Report Pg. 26 Packet Pg. 164 of 302
Vers.: Aug. 5, 2019
Page 3 of 4
work that is determined by CITY to be necessary for the proper completion of the Project, but
which is not included within the Scope of Services described at Exhibit “A”. CITY and CONSULTANT
may at any time mutually agree to add new position titles, rates, and adjust listed rates in Exhibit
“C-1” so long as the changes do not increase the not to exceed amount.
SECTION 4. Legal Effect. Except as modified by this Amendment, all other provisions of
the Contract, including any exhibits thereto, shall remain in full force and effect.
SECTION 5. Incorporation of Recitals. The recitals set forth above are terms of this
Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
Docusign Envelope ID: D75E52C0-9981-4C9F-91A3-0D0583FADF53
Item 6
Attachment F - Contract
No. C20178884 with
Urban Planning Partners,
Inc.
Item 6: Staff Report Pg. 27 Packet Pg. 165 of 302
Vers.: Aug. 5, 2019
Page 4 of 4
SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives
executed this Amendment effective as of the date first above written.
CITY OF PALO ALTO
City Manager
APPROVED AS TO FORM:
City Attorney or designee
URBAN PLANNING PARTNERS, INC.
Officer 1
By:
Name: Lynette Dias
Title: Principal
ldias@up-partners.com
Officer 2
By:
Name: Carla Violet
Title: Associate Principal
cviolet@up-partners.com
Docusign Envelope ID: D75E52C0-9981-4C9F-91A3-0D0583FADF53
Item 6
Attachment F - Contract
No. C20178884 with
Urban Planning Partners,
Inc.
Item 6: Staff Report Pg. 28 Packet Pg. 166 of 302
Vers.: Aug. 5, 2019
Page 1 of 4
AMENDMENT NO. 3 TO CONTRACT NO. C20178891
BETWEEN THE CITY OF PALO ALTO AND MICHAEL BAKER INTERNATIONAL, INC.
This Amendment No. 3 (this “Amendment”) to Contract No. C20178891 (the “Contract”
as defined below) is entered into as of October 1, 2024, by and between the CITY OF PALO ALTO,
a California chartered municipal corporation (“CITY”), and MICHAEL BAKER INTERNATIONAL INC.,
a Pennsylvania corporation, located at 100 Airside Drive Moon Township, PA 15108
(“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in this
Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties
hereto for the provision of providing on-call planning support services, as detailed therein.
B. On June 22, 2020, the Contract was entered into as an aggregate amount, not-to-
exceed One Million Five Hundred Thousand Dollars ($1,500,000.00) over a four-year term
through June 30, 2024, across a total of eight (8) consultant agreements (C20178877A,
C20178878, C20178879, C20178881, C20178882, C20178883, C20178884, and C20178891), as
detailed therein
C. On April 3, 2023, the Contract was amended to increase the aggregate amount,
not-to-exceed Three Million Dollars ($3,000,000.00) over a four-year term through June 30, 2024,
across a total of seven (7) consultant agreements (C20178877A, C20178878, C20178879,
C20178881, C20178882, C20178884, and C20178891).
D. On April 1, 2024, the Contract was amended to extend the contract term by three
(3) months, from June 30, 2024 to September 30, 2024 and to increase the aggregate amount,
not-to-exceed to Three Million Five Hundred Thousand Dollars ($3,500,000.00) over four-year
and three-month term through September 30, 2024, across a total of seven (7) consultant
agreements (C20178877A, C20178878, C20178879, C20178881, C20178882, C20178884, and
C20178891).
E. The Parties now wish to amend all seven (7) consultant agreements (C20178877A,
C20178878, C20178879, C20178881, C20178882, C20178884, and C20178891) to extend the
contract term by nine (9) months, from September 30, 2024 to June 30, 2025, and to increase
the aggregate amount by Seven Hundred Fifty Thousand Dollars ($750,000.00), from Three
Million Five Hundred Thousand Dollars ($3,500,0000.00), to a not to exceed compensation
amount of Four Million Two Hundred Fifty Thousand Dollars ($4,250,000.00), as detailed herein.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions
of this Amendment, the Parties agree:
Docusign Envelope ID: C8D067B0-41E0-4B45-BB41-2CE5A7EFF345
Item 6
Attachment G - Contract
No. C20178891 with
Michael Baker
International, Inc.
Item 6: Staff Report Pg. 29 Packet Pg. 167 of 302
Vers.: Aug. 5, 2019
Page 2 of 4
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean Contract No. C20178891
between CONSULTANT and CITY, dated June 22, 2020, as amended by:
Amendment No. 1, dated April 3, 2023
Amendment No. 2, dated April 1, 2024
b. Other Terms. Capitalized terms used and not defined in this Amendment
shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 2. TERM of the Contract is hereby amended to read as follows:
“The term of this Agreement shall be from the date of its full execution through June 30, 2025,
unless terminated earlier pursuant to Section 19 of this Agreement.”
SECTION 3. Section 4. NOT TO EXCEED COMPENSATION of the Contract is hereby
amended to read as follows:
The compensation to be paid to CONSULTANT for performance of the Services described in
Exhibit A, is in an aggregate amount that shall not exceed Four Million Two Hundred Fifty
Thousand Dollars ($4,250,000.00) over the Term across a total of seven (7) consultant
agreements (C20178877A, C20178878, C20178879, C20178881, C20178882, C20178884, and
C20178891), of which this is one.
The seven contracts will be administered by the CITY’s PLANNING & DEVELOPMENT SERVICES to
ensure the total aggregate of compensation paid over the Term does not exceed the amounts
set forth herein. CONSULTANT acknowledges and agrees that the CITY is hiring seven (7)
consultants, including CONSULTANT, none of whom will be guaranteed or assured of any specific
quantity of work to be performed. If the work is performed by any one or more consultants,
including CONSULTANT, CITY will ensure that total compensation to all seven consultants
including CONSULTANT, will not exceed in aggregate, across all seven (7) consultant agreements,
and will not exceed in aggregate Four Million Two Hundred Fifty Thousand Dollars
($4,250,000.00).
CONSULTANT agrees to complete all Services described in Exhibit A, including reimbursable
expenses, are subject to a Maximum Total Compensation “NOT TO EXCEED” amount of Four
Million Two Hundred Fifty Thousand Dollars ($4,250,000.00) during the term of the agreement.
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.
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
Docusign Envelope ID: C8D067B0-41E0-4B45-BB41-2CE5A7EFF345
Item 6
Attachment G - Contract
No. C20178891 with
Michael Baker
International, Inc.
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Vers.: Aug. 5, 2019
Page 3 of 4
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 at Exhibit “A”. CITY and CONSULTANT
may at any time mutually agree to add new position titles, rates, and adjust listed rates in Exhibit
“C-1” so long as the changes do not increase the not to exceed amount.
SECTION 4. Legal Effect. Except as modified by this Amendment, all other provisions of
the Contract, including any exhibits thereto, shall remain in full force and effect.
SECTION 5. Incorporation of Recitals. The recitals set forth above are terms of this
Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
Docusign Envelope ID: C8D067B0-41E0-4B45-BB41-2CE5A7EFF345
Item 6
Attachment G - Contract
No. C20178891 with
Michael Baker
International, Inc.
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Vers.: Aug. 5, 2019
Page 4 of 4
SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives
executed this Amendment effective as of the date first above written.
CITY OF PALO ALTO
City Manager
APPROVED AS TO FORM:
City Attorney or designee
MICHAEL BAKER INTERNATIONAL, INC.
Officer 1
By:
Name: Christopher Alberts
Title: Vice President
calberts@mbakerintl.com
Officer 2
By:
Name: Richard Beck
Title: Assistant Secretary
rbeck@mbakerintl.com
Docusign Envelope ID: C8D067B0-41E0-4B45-BB41-2CE5A7EFF345
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Attachment G - Contract
No. C20178891 with
Michael Baker
International, Inc.
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3
9
9
City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: City Auditor
Meeting Date: September 23, 2024
Report #:2409-3430
TITLE
Approval of Two Audits as Recommended by the Policy & Services Committee: Public Safety
Construction Audit and Parking Permit Technology Contracts Audit
RECOMMENDATION
The Policy & Services Committee and Office of the City Auditor recommend City Council
approve the results of two audits
1) Public Safety Construction Audit (Attachment A, P&S Committee recommended approval on
June 11, 2024) and
2) Parking Permit Technology Contracts Audit (Attachment B, P&S Committee recommended
approval on August 13, 2024).
EXECUTIVE SUMMARY
Public Safety Building Construction Audit
Baker Tilly Advisory Group, LP (Baker Tilly), in its capacity serving as the Office of the City
Auditor (OCA) for the City of Palo Alto (the City) performed construction audit services on the
Public Safety Building project. The objectives of this audit were to verify that billings to the City
from the Architect, Engineer, Inspector of Record, Construction Manager, Contractor, and
Waterproofing Inspector were compliant with the terms of the applicable contracts.
The new Public Safety Building will house the Police Department, 911 Emergency Dispatch
Center, the Emergency Operations Center, the Office of Emergency Services, and the
administration needs of the Fire Department. The Public Safety Building is part of the Capital
Improvement (Infrastructure) Plan introduced in 2014. Non-compliance with contract terms
related to project billings can result in cost overruns that impact the overall project budget. The
audit found no material billing errors and did not recommend any additional actions.
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9
9
Parking Permit Technology Contracts Management Audit
Baker Tilly Advisory Group, LP (Baker Tilly), in its capacity serving as the Office of the City
Auditor (OCA) for the City of Palo Alto (the City) performed an audit of the parking permit
technology contract management process and controls based on the approved Task Order 4.16
in alignment with the FY 2022 citywide risk assessment and audit plan. The objectives of this
review were to: 1) Determine whether adequate policies and procedures are implemented
effectively to protect the privacy of personal information gathered using parking permit
technology for the City’s parking management. 2) Determine whether the City monitors the
parking permit vendor’s performance to ensure compliance with contract terms and applicable
laws and regulations related to data privacy. The audit noted areas for improving policies and
procedures related to how the City and it’s parking technology system third-party providers
manage data privacy security. The attached report summarizes the analysis, audit findings, and
recommendations.
FISCAL/RESOURCE IMPACT
For the Parking Permit Technology Contract Management audit, the OCA worked primarily with
the Office of Transportation and the Information Technology Department, as well as, additional
stakeholders, including the City Manager’s Office and the City Attorney’s Office, as necessary.
The timeline for implementation of corrective action plans is identified within the attached
report. The necessary resources to implement these recommendations will be dependent on
the policy revisions approved upon completion of the review of IT policies and procedures.
ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by CEQA because the audit activities do
not involve any commitment to any specific project which may result in a potentially significant
physical impact on the environment. CEQA Guidelines section 15378(b)(4).
ATTACHMENTS
Attachment A: Public Safety Building Construction Audit Report, May 21, 2024
Attachment B: Park Permit Technology Contracts Audit, August 1, 2024
APPROVED BY:
Kate Murdock, City Auditor
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May 21, 2024
City of Palo Alto
Office of the City Auditor
Public Safety Building Construction
Audit Report
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Attachment A - Public
Safety Building
Construction Audit
Report, May 21, 2024
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Contents
Baker Tilly US, LLP, trading as Baker Tilly, is an independent member of Baker Tilly International. Baker Tilly International Limited is an English company. Baker
Tilly International provides no professional services to clients. Each member firm is a separate and independent legal entity, and each describes itself as such.
Baker Tilly US, LLP is not Baker Tilly International’s agent and does not have the authority to bind Baker Tilly International or act on Baker Tilly International’s
behalf. None of Baker Tilly International, Baker Tilly US, LLP nor any of the other member firms of Baker Tilly International has any liability for each other’s acts
or omissions. The name Baker Tilly and its associated logo is used under license from Baker Tilly International Limited.
EXECUTIVE SUMMARY...................................................................................................1
INTRODUCTION...............................................................................................................2
AUDIT RESULTS..............................................................................................................4
APPENDICES...................................................................................................................5
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Attachment A - Public
Safety Building
Construction Audit
Report, May 21, 2024
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1
Executive Summary
Purpose of the Audit
Baker Tilly US, LLP (Baker Tilly), in its capacity serving as the Office of the City Auditor (OCA) for the
City of Palo Alto (the City) performed construction audit services on the Public Safety Building project.
The objectives of this audit were to verify that billings to the City from the Architect, Engineer,
Inspector of Record, Construction Manager, Contractor, and Waterproofing Inspector were compliant
with the terms of the applicable contracts.
Report Highlights
Baker Tilly reviewed documentation provided by the Public Works Department for each of the
selected scopes on a monthly basis through March 2024 and found project billings were compliant
with the terms of the respective contracts. The billings, change orders, and additional services related
to each scope had the proper supporting documentation and authorizations. During the audit, we
identified several immaterial billing errors (see Finding 1 and Appendix A); however, these are
considered minor when compared to the overall value of the costs reviewed. The results of this audit
indicate the City’s implemented controls with respect to the review and approval of project billings are
operating as intended.
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Safety Building
Construction Audit
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Introduction
1 Invoiced amount includes design and construction administration services for the California Avenue Garage
project.
2 Invoiced amount includes project development and construction management services for the Fire Station No.
3 and California Avenue Garage projects.
Objective The objectives of this audit were to verify billings from the Architect, Engineer,
Inspector of Record, Construction Manager, Contractor, and Waterproofing Inspector
were contractually compliant, adequately supported, and authorized by the City.
Background The new Public Safety Building will house the Police Department, 911 Emergency
Dispatch Center, the Emergency Operations Center, the Office of Emergency
Services, and the administration needs of the Fire Department. The Public Safety
Building is part of the Capital Improvement (Infrastructure) Plan introduced in 2014.
Non-compliance with contract terms related to project billings can result in cost
overruns that impact the overall project budget.
Scope Our testing scope encompassed billings and cost documentation provided by the Public
Works Department through March 2024. This included the Swinerton Builders payment
application dated December 31, 2023, and billings for the other scopes through February
2024. At that time, billings reviewed for each of the contract scope subject to audit were
as follows:
Scope Contractor Invoiced Amount
Architect Ross Drulis Cusenbery (RDC) $ 9,497,8501
Engineer Romig Engineers 92,976
Inspector of Record 4Leaf, Inc. 546,534
Construction Manager Nova Partners, Inc. 9,264,4272
Contractor Swinerton Builders 86,888,316
Waterproofing Inspector Consolidated Engineering Laboratories (CEL) 106,317
Total $ 106,396,420
Methodology
and Analysis
To achieve the audit objectives, Baker Tilly performed the following procedures and
analysis:
•Inspected the contract to identify the key terms related to project billings for each
scope subject to audit
•Analyzed billings for each scope subject to audit on a monthly basis as follows:
o Created control schedules for billings and payment applications
o Footed and recalculated amounts billed to test for mathematical accuracy
o Rolled forward previous billed amounts to ensure reported totals were
accurate
o Verified lien waivers were collected where applicable
o Verified monthly invoices were submitted with a description of services
performed and the applicable charges (identification of personnel, hours
worked, hourly rates, and reimbursable expense)
o Where applicable, verified hourly rates reconciled to agreed upon rates
o Where applicable, reconciled support for reimbursable expenses to third
party cost support
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Construction Audit
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INTRODUCTION
3 Government auditing standards require an external peer review at least once every three (3) years. The last peer review of the Palo Alto
Office of the City Auditor was conducted in 2017. The Palo Alto City Council approved a contract from October 2020 through June 2022
with Baker Tilly US, LLP (Baker Tilly) and appointed Kyle O’Rourke, Senior Consulting Manager in Baker Tilly's Public Sector practice, as
City Auditor. Given the transition in the City Audit office, a peer review was not conducted in 2020 and will be conducted after the third year
of Baker Tilly’s contract.
o Verified aggregate billings did not exceed contractual limitations
o Verified billings and payment applications had the appropriate
authorizations
•Analyzed change orders, amendments, and additional services in scope as
follows:
o Reconciled the amounts reflected on change orders to supporting
documentation
o Verified the change order costs were contractually compliant and
reconciled to agreed upon rates where appliable
o Recalculated any markups and insurance amounts to ensure the applicable
rates adhered to the contract terms
o Verified change orders and additional services had the required
authorization
•Communicated the testing results to the Public Works Department on a monthly
basis:
o Verified any identified billing errors were corrected (see Appendix A)
o Requested additional documentation as necessary to complete testing
Compliance
Statement
This audit activity was conducted from March 2021 to March 2024 in accordance with
generally accepted government auditing standards, except for the requirement of an
external peer review3. Those standards require that we plan and perform the audit to
obtain sufficient, appropriate evidence to provide a reasonable basis for our findings
and conclusions based on our audit objectives. We believe that the evidence obtained
provides a reasonable basis for our findings and conclusions based on our audit
objectives.
Organizational
Strengths
During this audit activity, we observed that the controls implemented by the City
related to the review of billings and change orders were operating as intended. This is
evidenced based on the low occurrence of findings and immaterial values thereof. All
parties were accommodating during the audit process and were forthcoming with
answers to questions and requests for additional documentation.
The Office of the City Auditor greatly appreciates the support of the Public Works Department in
conducting this audit activity.
Thank you!
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Construction Audit
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Audit Results
Finding 1:
Immaterial billing
errors
Baker Tilly identified nine billing errors totaling $10,122 throughout the audit
engagement. These errors were mostly related to labor billing rate errors
where the contractor in question billed for services at rates that were not
compliant with the agreed upon rates. Each of the identified errors was
resolved on a subsequent billing from the applicable contractor. See
Appendix A for additional detail related to the specific billing errors identified.
Recommendation No additional action is required. All billing errors have been resolved. In
addition, the errors in question occurred during the early months of our audit
and the occurrence of findings decreased as the audit progressed.
Recommended
follow-up
activities
As of the report date the project was not yet complete. Baker Tilly
recommends performing a closeout audit upon final completion of the
project. The current substantial completion is anticipated on July 31, 2024.
The closeout audit would kick off in August 2024 and conclude upon receipt
of the documentation required to complete closeout testing. The primary
objectives of the closeout audit would include:
•Analyze billings and change orders for the selected audit scopes
received by the Public Works Department from March 2024 through
project completion (Swinerton Payment applications subsequent to
December 31, 2023, and billings from the other selected scopes
subsequent to February 2024).
•Verify the allowances included in the construction contract are
reconciled and closed out per the contract terms
•Verify final lien waivers are collected from subcontractors
•Confirm final amounts paid to each contractor in the scope of the
audit does not exceed the contractual limitations
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Construction Audit
Report, May 21, 2024
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Appendices
Appendices
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Appendix A: Public Safety Building – Construction Audit Issues Log
The following audit issues totaling $10,122 were identified during monthly testing. Each of these issues were communicated to the Public Works
Department when identified. All audit issues have been resolved.
AI ID
No.Audit Issue AI Date
Response
Date Status Result Amount
001 Swinerton Builders - COR #25 which was
included in Change Order #4 included a
duplicate charge for equipment markup
totaling $356.77 (see RFI #7).
9/23/2021 11/15/2021 Closed Public Works provided Change Order #8
reflecting the credit.
Baker Tilly reviewed Change Order #8
and confirmed credit.
$ 356.77
002 Nova Partners - Invoices from June 2017 to
December 2017 billed an Estimator at a
rate of $175 per hour rather than the
agreed-upon rate of $160 per hour. This
resulted in a billing rate overcharge totaling
$6,975 (see RFI #1).
10/15/2021 1/12/2022 Closed Public Works provided Invoice #104376
reflecting the credit.
Baker Tilly reviewed Invoice #104376
and confirmed credit.
$ 6,975.00
003 Consolidated Engineering Laboratories -
Invoice #191863 billed overtime at a rate of
$161.25 and double-time at a rate of
$215.00 rather than the agreed upon rates
of $142.50 for overtime and $190 for double
time. This resulted in a billing rate
overcharge totaling $400 (see RFI #24).
3/16/2022 4/13/2022 Closed Public Works provided Invoice #195679
reflecting the credit.
Baker Tilly reviewed Invoice #195679
and confirmed credit.
$ 400.00
004 Romig Engineers - Invoice #27139 and
#28131 billed the position "Engineering
Technician Prevailing Wage" at a rate of
$150 per hour rather than the agreed-upon
rate of $144 per hour. This resulted in a
billing rate overcharge totaling $473.40 (see
RFI #27).
4/21/2022 5/31/2023 Closed Public Works provided Invoice #31394
and #31569 reflecting the credit.
Baker Tilly reviewed Invoice #31394 and
#31569 and confirmed credit.
$ 473.40
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Construction Audit Report, May 21,
2024
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Appendix A: Public Safety Building – Construction Audit Issues Log (cont.)
7
AI ID
No.Audit Issue AI Date
Response
Date Status Result Amount
005 Romig Engineers - Invoice #28131 billed
overtime at a rate of $225 rather than the
agreed upon rate of $216. This resulted in a
billing rate overcharge totaling $63.00 (see
RFI #28).
4/21/2022 5/31/2023 Closed Public Works provided Invoice #31569
reflecting the credit.
Baker Tilly reviewed Invoice #31569 and
confirmed credit.
$ 63.00
006 Romig Engineers - Invoice #27784B billed
the position "Engineering Technician
Prevailing Wage" at a rate of $150 per hour
rather than the agreed-upon rate of $144
per hour. Overtime was also billed at a rate
of $225 rather than the agreed upon rate of
$216. This resulted in a billing rate
overcharge totaling $333.00 (see RFI #26).
4/21/2022 5/31/2023 Closed Public Works provided Invoice #31394
reflecting the credit.
Baker Tilly reviewed Invoice #31394 and
confirmed credit.
$ 333.00
007 Consolidated Engineering Laboratories
(CEL) Invoice #196433 billed the position
"Waterproof Inspector" at rate of $99.28 per
hour rather than the agreed-upon rate of
$96.90 per hour. This resulted in a billing
rate overcharge totaling $310.59 (see RFI
#31).
6/27/2022 7/26/2022 Closed Public Works provided Invoice #198423
reflecting the credit.
Baker Tilly reviewed Invoice #198423
and confirmed credit.
$ 310.59
008 Consolidated Engineering Laboratories
(CEL) Invoice #197348 billed the position
"Waterproof Inspector" at rate of $99.28 per
hour rather than the agreed-upon rate of
$96.90 per hour. This resulted in a billing
rate overcharge totaling $166.60 (see RFI
#35).
7/26/2022 7/26/2022 Closed Public Works provided Invoice #198423
reflecting the credit.
Baker Tilly reviewed Invoice #198423
and confirmed credit.
$ 166.60
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Construction Audit Report, May 21,
2024
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Appendix A: Public Safety Building – Construction Audit Issues Log (cont.)
8
AI ID
No.Audit Issue AI Date
Response
Date Status Result Amount
009 4 Leaf, Inc - Invoice #J3909W billed time for
Traci Craton at $169.95 per hour rather
than the agreed-upon rate of $54 per hour.
This resulted in a billing rate overcharge
totaling $1,043.64 (See RFI #42).
7/28/2023 8/29/2023 Closed Public Works provided Invoice #J309X-
REV reflecting the correct rates.
Baker Tilly reviewed Invoice #J309X-
REV and confirmed.
$ 1,043.64
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Safety Building
Construction Audit
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Construction Audit Report, May 21,
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August 1, 2024
City of Palo Alto
Office of City Auditor
Parking Permit Technology Contracts Audit
Item 7
Attachment B - Park
Permit Technology
Contracts Audit, August 1,
2024
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Contents
Baker Tilly US, LLP, trading as Baker Tilly, is an independent member of Baker Tilly International. Baker Tilly International Limited is an English company. Baker
Tilly International provides no professional services to clients. Each member firm is a separate and independent legal entity, and each describes itself as such.
Baker Tilly US, LLP is not Baker Tilly International’s agent and does not have the authority to bind Baker Tilly International or act on Baker Tilly International’s
behalf. None of Baker Tilly International, Baker Tilly US, LLP nor any of the other member firms of Baker Tilly International has any liability for each other’s acts
or omissions. The name Baker Tilly and its associated logo is used under license from Baker Tilly International Limited.
EXECUTIVE SUMMARY...................................................................................................1
PURPOSE OF THE AUDIT......................................................................................................................1
REPORT HIGHLIGHTS............................................................................................................................1
INTRODUCTION...............................................................................................................5
DETAILED ANALYSIS...................................................................................................11
BEST PRACTICES..................................................................................................................................12
AUDIT RESULTS............................................................................................................13
..................................................................................................................................................................24
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Permit Technology
Contracts Audit, August 1,
2024
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1
Executive Summary
Purpose of the Audit
Baker Tilly US, LLP (Baker Tilly), in its capacity serving as the Office of the City Auditor (OCA) for the
City of Palo Alto (the City), conducted an audit of the parking permit technology systems contract
management process and controls based on the approved Task Order 4.16. The objectives of this
review were to:
1) Determine whether adequate policies and procedures are implemented effectively to protect the
privacy of personal information gathered using parking permit technology for the City’s parking
management.
2) Determine whether the City monitors the vendor’s performance to ensure compliance with
contract terms and applicable laws and regulations related to data privacy.
Report Highlights
Finding 1: Data Privacy Improvements
The City lacks a data privacy program owner and policies, procedures and
associated training requirements have not been regularly updated.
Key Recommendation
We recommend the City designate a data privacy program owner to coordinate a
uniform approach to data privacy management between the City Attorney, Chief
Information Officer, and Director of Human Resources.
Finding 2:Lack of Personal Identifiable Information (PII) Procedures
The City does not have Personal Identifiable Information (PII) procedures for
personal information that is managed or collected. Additionally, there are no
procedures related to masked or de-identified personal information.
Key Recommendation
We recommend that the City establish procedures for managing and collecting
Personal Identifiable Information (PII). These procedures should include:
classification of information, retention of PII, access control, data masking, and data
restoration and backup.
Finding 3:Records and Information Management Policy Enhancements
The City's Records and Information Management Policy does not address essential
elements related to information collection consent, management protocols for
personally identifiable information (PII), and comprehensive guidelines governing
data retention, maintenance, and destruction.
Key Recommendation
We recommend the City should annually review and approve its Records and
Information Management Policy to ensure it aligns with best practices and relevant
laws.
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Permit Technology
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EXECUTIVE SUMMARY
Finding 3: Lack of User Access Listing and Reviews
The City could not provide a user access listing for individuals who have access to
Personal Identifiable Information (PII) and there are no individuals that are
considered data security owners. Additionally, there is no evidence that access
reviews are being performed periodically by data security owners and confirmed with
the IT Department.
Key Recommendation
We recommend that the City establishes a list of individuals who have access to
add, edit, or delete Personal Identifiable Information (PII).
Finding 4: Inadequate Breach of Contract Terms and Conditions with Third-Party Vendor
There is a section called "Data Security Breach Notification Act" within the City's
Data Privacy Policy, however, there is no specific mention of breaches related to
third-party vendors.
Key Recommendation
We recommend that the City's Data Privacy Policy explicitly covers breaches that
occur to third-party vendors. The policy should specifically emphasize that vendors
are required to adhere to and uphold the data privacy and security standards set by
the City.
Finding 5:Inadequate Vendor Performance Assessment
There is no formal vendor performance assessment in place within the
Transportation Department.
Key Recommendation
We recommend that the Transportation Department establishes a formal vendor
performance assessment for all third-party vendors.
Finding 6:Absence of Third-Party Agreement Requirements
The City’s third-party license plate reading provider agreement does not formally
define the minimum requirements and vendor expectations related to the workflows
that process PII data.
Key Recommendation
The City should implement internal controls to ensure that all third-party providers
and agreements are in alignment with Palo Alto's maximum risk appetite and risk
posture.
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Introduction
Objective The objectives of this review were to:
1) Determine whether adequate policies and procedures are implemented
effectively to protect the privacy of personal information gathered using
PARKING PERMIT technology for the City’s parking management.
2) Determine whether the City monitors the vendor’s performance to ensure
compliance with contract terms and applicable laws and regulations related to
data privacy.
Background During the FY2022 risk assessment, the Baker Tilly team identified the following
inherent risks and noted the contract management as a high-risk area:
•Contract compliance and cost control issues
•Noncompliance with applicable data privacy laws
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INTRODUCTION
The summary of the information provided in the FY2022 operating and capital budget
documents prepared by the City of Palo Alto (the City) is as follows:
Systems Involved
•Permitting System, City of Palo Alto
•Processing System, Duncan Solutions
•Automated License Plate Reader, ComSonics
Risk Consideration
Based on the currently available information, we have identified the following risks
associated with management of the Office of Transportation:
•Data Privacy
•Contract Management
•Safety Improvement Projects
•Traffic Operations
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INTRODUCTION
Personally Identifiable Information (PII)
According to the National Institute of Standards and Technology (NIST), the definition
of personally identifiable information (PII) is: "Information that can be used to
distinguish or trace an individual’s identity—such as name, social security number,
biometric data records—either alone or when combined with other personal or
identifying information that is linked or linkable to a specific individual (e.g., date and
place of birth, mother’s maiden name, etc.)."
It is crucial for the City to define their posture as it relates to data privacy and PII
because this will allow the City to ensure that all providers are complying with the
City’s standards.
Data Security Owner
Each data security owner (the City, Duncan Solutions, and ComSonics) is
responsible for the classification, protection, storage, use, and quality of data
processed related to parking permitting and enforcement operations.
Data Life Cycle
At a high level, the data life cycle involves the suggested steps below, followed by
Palo Alto’s current, related practices:
1. Data Collection:
Data should be gathered in standardized formats, so it can be accessible and
manageable later in the cycle.
•Palo Alto customers apply for permits online, which includes PII and PCI.
2. Data Storage
Policies should be established related to the storage of data.
•Data is stored in the City’s permitting system, Duncan Solutions’
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2024
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INTRODUCTION
processing system, and the ComSonics system.
3. Data Maintenance
Data should be made usable and available for the appropriate person(s).
•Palo Alto’s customer application data is used to generate permits.
4. Data Usage
Data is used for making decisions.
•Verification of active permits is performed by scanning license plate
numbers into the parking permit system and validating against Duncan
Solutions’ processing system, which pulls from the City’s permitting
system.
5. Data Cleaning
When data is no longer useful, data should be deleted, purged, destroyed, or
archived.
•Palo Alto customers permits that are inactive or expired should be purged
based on the City’s records retention schedule.
Scope The scope of this audit was to review the parking permit technology systems contract
management. The OCA reviewed the City of Palo Alto’s policies and procedures
related to Privacy Management, Data Management and Collection, Data Security, 3rd
Party C&C Agreements, Surveillance Policy, and Incident Management in relation to
the use of the parking permit technology and to ensure that the City maintains all
necessary policies and that they are up to date. In addition to the policies and
procedures, the OCA reviewed the City’s vendor performance monitoring.
Item 7
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Permit Technology
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INTRODUCTION
1 Government auditing standards require an external peer review at least once every three (3) years. The last peer review of the Palo Alto
Office of the City Auditor was conducted in 2017. The Palo Alto City Council approved a contract with Baker Tilly U.S, LLP for internal audit
services for October 2020 through June 2022 with an extension through June 2025. City Council appointed Kate Murdock, Audit Manager in
Baker Tilly’s Risk Advisory practice, as City Auditor in May 2024. As a result of transitions in the Audit Office and peer review delays due to
the COVID pandemic, an external peer review is targeted for 2025. It should be noted that Baker Tilly’s most recent firmwide peer review
was completed in October 2021 with a rating of “Pass”. The scope of that peer review includes projects completed under government
auditing standards. A report on the next firmwide peer review should be available later in 2024.
Methodology 1. In order to address our audit objective (1), we performed the following
procedures:
•Interviewed the appropriate individuals to understand the process, the
information system used, and internal controls related to the gathering of
personal information collected by the parking permit technology systems.
•Reviewed the contracts, policies, and procedures as well as the regulations
and standards to identify the criteria to be used for evaluation of compliance
and control design and effectiveness.
•Reviewed the documents (such as contracts and supporting documents for
allocation) for selected samples.
•Compared privacy control against the California Consumer Privacy Act of
2018 and other best practices.
2. In order to address our audit objective (2), we performed the following
procedures:
•Interviewed the appropriate individuals to understand the process and internal
controls over compliance with contracts, regulations, and vendor monitoring.
•Reviewed agreements between Palo Alto and Duncan Solutions to identify
compliance requirements.
•Identified the monitoring activities performed by management to ensure the
compliance.
•Reviewed the relevant documents to evaluate the effectiveness of compliance
monitoring activities.
Compliance
Statement
This audit activity was conducted from February 2023 to December 2023 in
accordance with generally accepted government auditing standards, except for the
requirement of an external peer review1. Those standards require that we plan and
perform the audit to obtain sufficient, appropriate evidence to provide a reasonable
basis for our findings and conclusions based on our audit objectives. We believe that
the evidence obtained provides a reasonable basis for our findings and conclusions
based on our audit objectives.
Organizational
Strengths
During this audit activity, we observed certain strengths of the City. Key strengths
include:
•Transportation Department was responsive and helpful.
•All involved departments provided responses to all requested items.
•Knowledge and expertise of third-party providers.
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INTRODUCTION
The Office of the City Auditor greatly appreciates the support of the Information
Technology, Human Resources, and Transportation Departments in conducting this audit
activity.
Thank you!
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Detailed Analysis
2 California Consumer Privacy Act of 2018, Section 1798.185 - Codes Display Text (ca.gov)
3 Chapter 3 – Rights of the data subject - General Data Protection Regulation (GDPR) (gdpr-info.eu)
4 A complete guide to business Records Retention | Iron Mountain United States
Policies and
Procedures
The City has the Data Privacy Policy (Revised: April 2019). The Policy
Statement of this policy is “this Data Privacy Policy describes the data privacy
requirements and procedures for the protection of personal data and personal
information of individuals (the “Data”) created, collected, processed, received,
stored, and transmitted by the City of Palo Alto (the “City”).”
The City’s Data Privacy Policy includes User Data Collected, Stored,
Processed, and Shared; Information Security and Data Protection; Data
Security Breach Notification Act; Third-Party Data Access Control; Information
Disclosure; California Privacy Rights; Protecting Children’s Privacy Online; and
City of Palo Alto Utilities (“CPAU”) Data Privacy. The policy does not include
the following related best practices:
•Guidance on the measures in place to secure and protect PII from
unauthorized access, disclosure, alteration, and destruction. This may
include encryption, access controls, and regular security audits.2
•A clear definition of Data Subject Rights that outlines the rights of
individuals regarding their personal information3.
The City has the Records and Information Management Policy (Revised: July
2000). The policy statement of this policy is that it “was developed to ensure
the efficient retention and protection of information and to assure the
availability of information to the public in accordance with the State of California
Public Records Act.”
The City’s Records and Information Management Policy includes Roles and
Responsibilities and a Compliance Requirements section. The policy does not
include the following related best practices4:
•A formal definition of record categories or types of data that guides how
data is retained.
•A procedure for destroying or disposing of records once they have
reached the end of their retention period.
•A procedure for exceptions and legal holds as records may be exempt
from regular retention periods.
•Guidance on individuals that have access to the various types of
records.
•Guidance on any training programs or awareness campaigns that are
related to record retention.
•Guidance on the monitoring of record retention activity and
consequences of non-compliance.
There is also a Data Retention Schedule that supplements the Records and
Information Management Policy. The retention schedule identifies which
records are permanently retained as well as department-specific retention of
records.
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DETAILED ANALYSIS
Best Practices
As organizations and businesses move online and communicate digitally, the
risk of data breaches and/or private information leaks are higher than ever.
Personally identifiable information (PII) can be used for targeted attacks, social
engineering attacks, identity theft, and more. Effective and updated policies
and procedures are integral to protecting the City from breaches of PII.
Through researching standards related to PII, data privacy, and records
management & retention, the OCA compiled the following list of best practices
according to the California Consumer Privacy Act (CCPA), the Information
Systems Audit and Control Association (ISACA), and National Institute of
Standards and Technology (NIST).
•Educate and train employees on a consistent basis on topics related to
PII, data privacy, security, incident management, and cybersecurity.
•Obtain explicit and informed consent from individuals before collecting
their personal information.
•The purposes for which personal data are collected should be specified
at the time of data collection.
•Personal data should be protected by reasonable security safeguards
against such risks as loss or unauthorized access, destruction, use,
modification, or disclosure of data.
•Conduct periodic data audits and/or risk assessments to identify
vulnerabilities, compliance gaps, and areas for improvement.
•Review policies and procedures on an annual basis to ensure accuracy
and that all information is up to date.
•Ensure that all policies and procedures related to PII, data privacy, and
security are available for City employees and external users.
The vendor contract owner should be responsible for all quantitative and
qualitative key performance indicator identification, monitoring and reporting to
Executive Leadership related to but not limited to the following:
•Quality - error resolution
•Delivery - availability
•Innovation - proposed improvements
•Risk - breaches and non-compliance
•Cost - price increase and scope limitations
•Customer Service - compliant resolution and communication
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Audit Results
Finding 1: Data Privacy
Improvements
The City lacks an identified citywide data privacy program owner and
policies, procedures and associated training requirements have not
been updated recently.
Recommendation We recommend the City designate a data privacy program owner to
coordinate a uniform approach to data privacy management among
the City Attorney, Chief Information Officer and Director of Human
Resources. Based on best practices, the data privacy program owner
responsibilities should include the following:
•Annual review and update of data privacy policies and
procedures in alignment with the California Consumer Privacy
Act of 2018. Reviews should be appropriately documented.
•Annual data privacy trainings held with all departments. The
City might also consider use of a Certified Information Privacy
Professional (CIPP) to ensure compliance with data privacy
laws, regulations, and best practices. Training compliance
should be tracked and monitored, and metrics might include:
completion rate, assessment scores, feedback, and survey
responses, and reported to management quarterly. Every
employee is expected to take privacy management training.
•Ensure data privacy requirements and changes are annually
incorporated into the City’s Record and Information Retention
Policy so records containing personal identifiable information
are properly secured. Additionally, documented procedures for
data destruction should be aligned with legal requirements,
Management Response Responsible Department(s): Information Technology
Concurrence: Agree
Target Date: CY Q4 2024
Action Plan: While the City Does not have a designated data privacy
program owner, the Data Privacy Policy provides oversight for the
shared responsibility amongst the roles and departments, though staff
agree the policy review and updates. A project to update all IT
policies has been initiated and this policy will be reviewed as part of
this project, specifically in alignment with NIST regulations. This
initiative has been started in alignment with the Cybersecurity Audit
that recommended review of Outdated Policy and Standards
Documentation recently completed in FY 2023. Although
cybersecurity training is already offered and required citywide, to
provide privacy training opportunities, a newly procured security
training platform will provide training related to data protection,
compliance with privacy laws and regulations, and best practices
related to data privacy.
Finding 2: Lack of
Personal Identifiable
The City does not have specific Personal Identifiable Information (PII)
procedures for personal information that is managed or collected in
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Information (PII)
Procedures
the parking permit systems. In addition, there are no procedures or
guidelines regarding if or which information should be de-identified to
protect information privacy.
Recommendation We recommend when implementing a system such as the parking
permit systems, that the City documents procedures related to
Personal Identifiable Information (PII) when managing or collecting
personal data in that system. Procedures for PII data should include
how to classify sensitive and non-sensitive information, which PII is
necessary for retention, access control, data masking (what type of
data is redacted or even replaced), contract terms to manage vendor
relationships where PII is referenced or shared, and data that is
restored or backed up. Once established the procedures should be
easily accessible to program staff.
Management Response Responsible Department(s): Information Technology
Concurrence: Partially Agree
Target Date: CY Q4 2024
Action Plan: Procedures on handling PII are included and
maintained as part of Information Privacy policy provided for review.
In addition, a Surveillance Policy is also maintained and reported on
annually for new technologies implemented prospectively.
Specifically, parking permit data is limited to parking permit program
and collections staffing. More specificity regarding PII handling can be
added and identified in these policies already under review.
Finding 3: Lack of User
Access Listing and
Reviews
The City did not provide a user access listing for individuals who have
access to Personal Identifiable Information (PII) for the parking permit
systems and no designation of the data security owner(s).
Additionally, there is no evidence that access reviews are being
performed periodically.
Recommendation We recommend that the City establishes a list of individuals who have
access to add, edit, or delete Personal Identifiable Information (PII).
The City should review user access rights annually by the identified
data security owners in departments.
Management Response Responsible Department(s): Information Technology
Concurrence: Agree
Target Date: CY Q4 2024
Action Plan: Vendors required to supply role-based access control to
managed user access levels and those permissions/restrictions are
established upon user set-up. Staff will evaluate updates to
centralized process requirements in the review of data privacy policy
and procedures including feasibility to develop reports will be shared
with the appropriate staff to validate only authorized staff have access
to PII across many software platforms.
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Finding 4: Inadequate
Breach of Contract
with Third-Party
Vendor
There is a section called "Data Security Breach Notification Act"
within the City's Data Privacy Policy, however, there is no specific
mention of breaches related to third-party vendors.
Recommendation We recommend that the City's Data Privacy Policy explicitly covers
breaches that occur to third-party vendors. The policy should
specifically emphasize that vendors are required to adhere to and
uphold the data privacy and security standards set by the City.
Additionally, the policy should specify that third-party vendors must
follow the City's data classifications and requirements. The City's data
breach response plan should identify a key point of contact, defined
approved communication methods, the maximum timeframe for which
the incident should be communicated to the City, and the minimum
requirements for key information that should be provided.
Management Response Responsible Department(s): Information Technology
Concurrence: Partially Agree
Target Date: CY Q4 2024
Action Plan: All vendors are required to agree to the City's
Cybersecurity Terms and Conditions which requires notification of a
security breach, this is evidenced by the ALPR contract approved in
2021 which included these terms. Specific updates to specify a
response plan expectations in the policy will be reviewed as part of
the project to update all IT policies as staff agreed the policy is in
need of review and update.
Finding 5: Inadequate
Vendor Performance
Assessment
The City does not have a formal process to ensure on-going vendor
compliance with the Vendor Information Security Assessment (VISA)
Questionnaire through the full term of the parking permit systems
contracts.
Recommendation We recommend that the Transportation Department establish a
formal vendor performance assessment for all third-party vendors.
This assessment would help evaluate potential risks, identify benefits
of working with a vendor, and confirm that the vendor is fulfilling the
terms of the contract while delivering value in the relationship.
Specific tests that can be performed during a third-party assessment
are performance tests, delivery tests, customer service tests,
cybersecurity tests, and compliance tests.
Management Response Responsible Department(s): Information Technology, Office or
Transportation, Administrative Services
Concurrence: Partially Agree
Target Date: Q4 CY 2024
Action Plan:
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The Office of Transportation is responsible for contract management
and has an informal process to ensure service providers are meeting
scope of services described within. A more formal process to ensure
continued compliance with cyber security requirements through the
term of the contract will be reviewed among Administrative Services,
Office of Transportation, and Information Technology to determine an
appropriate procedure. Staff is reviewing this in alignment with the IT
risk management process which was recommended as part of the
Risk Management Assessment completed by Baker Tilly previously.
Finding 6: Absence of
Third-Party Agreement
Requirements
The City’s third-party license plate reading provider agreement does
not formally define the minimum requirements and vendor
expectations related to the workflows that process PII data.
Recommendation The City should implement internal controls to ensure that all third-
party providers and agreements are in alignment with the Palo Alto's
maximum risk appetite and risk posture in the following areas:
•Contractual language for the management of that have access
to City PII data.
•Duly executed contracts are in place with third parties
managing or that have access to workflows related to PII data.
•Third-party companies responsible for or that have access to
workflows which are related to PII are appropriately risk
ranked in order to assess exposure to privacy data leakage.
•Self-assessment of third-party vendors is managed and
reviewed to ensure performance is satisfactory.
Management Response Responsible Department(s): Information Technology &
Administrative Services
Concurrence: Partially Agree
Target Date: Q4 CY 2024
Action Plan:
The City currently has a procurement process that involves the
requesting department, legal review, and consultation with
stakeholders such as Information Technology or Human Resources.
This process will be detailed in the nearly completed Procurement
Audit. Standard contract templates that are in alignment with the
City’s risk tolerance levels are used when possible, when changes or
alternative contract documents are necessary they are reviewed by
these parties in depth to ensure general compliance with risk
exposure. As such, this continues to be a living process as both
service providers and industry standard practices evolve; staff agree
that as more technology contracts are required for the delivery of
services, clarity in risk tolerance and alignment with contract terms
will continue to be adjusted.
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City Council
Staff Report
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: September 23, 2024
Report #:2409-3477
TITLE
Adoption of an Ordinance Updating Palo Alto Municipal Code Chapter 4.64 (Permits for
Retailers of Tobacco Products) to Conform with County Amendments and Approval of the
Updated Agreement Between the County of Santa Clara and City of Palo Alto for a Tobacco
Retail Permit Program; CEQA Status – Not a Project
RECOMMENDATION
Staff recommends that Council:
1. Adopt an ordinance amending City of Palo Alto Municipal Code Chapter 4.64, Permits
for Retailers of Tobacco Products to align the code with the Santa Clara County
Tobacco Retail Permit Ordinance; and
2. Approve the updated Agreement Between the County of Santa Clara and City of
Palo Alto for a Tobacco Retail Permit Program.
EXECUTIVE SUMMARY
The City of Palo Alto partners with the Santa Clara County Department of Public Health to
administer the Palo Alto Municipal Code (PAMC) Chapter 4.64, Permits for Retailers of Tobacco
Products.1 The existing ordinance requires permits for tobacco sellers and restricts the sale of
flavored tobacco and electronic cigarette products, among other provisions. The agreement
between the County of Santa Clara and City of Palo Alto for a Tobacco Retail Permit (TRP)
Program outlines each agency’s roles and responsibilities of Tobacco Retail Permit Ordinance
administration. Per the existing agreement, Palo Alto’s ordinance must mirror the County’s
ordinance for the County to conduct its TRP administrative and enforcement responsibilities.
The proposed Ordinance revisions (Attachment A) clarify requirements and increase fines for
noncompliant retailers; the revisions do not include any new restrictions on any tobacco
products. The proposed Agreement revisions (Attachment B), update details about Agreement
1 City of Palo Alto Municipal Code 4.64 Permits for Retailers of Tobacco Products;
https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0-0-0-64706
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administration, and the roles and responsibilities of City and County staff in Ordinance
oversight and enforcement.
BACKGROUND
Council approved the most recent version of the City of Palo Alto Tobacco Retailer Permit
Ordinance (PAMC Chapter 4.64) on June 8, 2020.2 Existing law requires tobacco retailers to
obtain a permit (TRP), prohibits retailers from selling flavored tobacco and electronic
cigarette products, and stipulates duties for signage, record keeping, and related details.
ANALYSIS
The proposed Ordinance revisions required by the County are administrative in nature and
do not change any criteria for products that are prohibited from sale, or where items can be
sold.
Updated Ordinance provisions include:
1. Fines up to $2,500 and up to a 180-day suspension of a business’s TRP permit
for a second violation of the TRP Ordinance within a five-year period
2. Permanent permit revocation for a third Ordinance violation within a five-year
period. Any business continuing to sell tobacco products after TRP revocation will be
subject to additional fines
3. Increased penalties for retailers operating without a valid permit and the
following related fines:
•Up to $2,500 and 30 days of permit ineligibility for an initial violation
•Up to $5,000 and one year of permit ineligibility for a second violation
within a five-year period
•Up to $10,000 and permanent TRP ineligibility for each subsequent
violation within a five-year period
4. Businesses that have their TRP suspended must post a prominent public notice at
their business during the entire suspension period
5. Businesses must (1) consent to inspection by the County of all areas and records; and
(2) comply with any impound or seizure order issued by the County. Violations of
these provisions would be a basis for suspension/revocation of a TRP
6. If inspections reveal noncompliance with any of the Ordinance requirements, such
that reinspection is needed to determine compliance, the cost of such reinspection
will be billed to the retailer
7. Clarification that a retailer is liable for all enforcement-related fees and costs
8. Tobacco retailers are responsible for the actions of their employees relating to the
2 City Council, June 8, 2020; Agenda Item #4; SR# 11372
https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/reports/city-manager-reports-
cmrs/year-archive/2020/id-11372-tobacco.pdf?t=62779.86
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sale and furnishing of tobacco products at the retail location; nothing in the
Ordinance shall be construed to penalize the purchase, use, or possession of a tobacco
product by any person not engaged in tobacco retailing
9. Businesses must examine an individual’s identification to confirm the age of that
person, regardless of appearance, prior to selling tobacco products to any person
FISCAL/RESOURCE IMPACT
There is no financial impact to the City in adopting this Ordinance revision. Under the
Agreement with the County, the TRP is administered and primarily staffed by the
County.
STAKEHOLDER ENGAGEMENT
The Santa Clara County Department of Health notified Palo Alto tobacco retailers about
proposed Ordinance changes on May 20, 2024 and provided a three-week comment
period.3 One retailer submitted questions about required age checks. The County provided
answers to those questions.4 The City of Palo Alto also provided information about proposed
Ordinance changes on the City’s Smoking Ordinance webpage
(www.cityofpaloalto.org/smokingordinance).
ENVIRONMENTAL REVIEW
Approval of the Ordinance and Agreement is not a project under the California Environmental
Quality Act (CEQA) because it does not cause a direct physical change in the environment or
a reasonably foreseeable indirect change in the physical environment.
ATTACHMENTS
Attachment A: Ordinance Amending PAMC Chapter 4.64
Attachment B: County-Palo Alto Amended and Restated TRP Agreement
APPROVED BY:
Brad Eggleston, Director Public Works/City Engineer
3 County of Santa Clara Public Health Department, May 20, 2024; Retailer Notification,
https://www.cityofpaloalto.org/files/assets/public/v/1/public-works/environmental-compliance/smoking-
ordinance/2024-retailer-notification-for-trp-revisions.pdf
4 County of Santa Clara Public Health Department, 2024 Answers to Retailer Questions,
https://www.cityofpaloalto.org/files/assets/public/v/1/public-works/environmental-compliance/smoking-
ordinance/santa-clara-county-dept-of-health-answers-to-retailer-questions.pdf
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Ordinance No. _____
Ordinance of the Council of the City of Palo Alto Amending Chapter 4.64
(“Permits for Retailers of Tobacco Products”) Of Title 4 (Business Licenses and
Regulations).
The Council of the City of Palo Alto ORDAINS as follows:
SECTION 1. Findings and Declarations. The City Council finds and declares as follows:
A. The City of Palo Alto and the County of Santa Clara have a partnership to regulate tobacco
retailers and the sale of tobacco products in the City of Palo Alto. The City adopts the
County’s relevant ordinance and the County enforces the City’s ordinance.
B. The County adopted County Ordinance NS-517.96 in 2022 to amend its tobacco retailing
ordinance. The City intends to make the same changes to its own ordinance through
adoption of this ordinance.
C. This Ordinance amends Palo Alto Municipal Code Chapter 4.64 (Permits for Retailers of
Tobacco Products) to authorize denial of a permit to a Retailer whose permit was
previously revoked; impose conditions on permits to facilitate enforcement; increase
fines for violations; provide for impound and seizure of noncompliant products; require
posting of public notice during any suspension; and clarify the existing prohibition on the
sale of electronic cigarette products.
SECTION 2. The following sections of Chapter 4.64 (Permits for Retailers of Tobacco
Products) of Title 4 (Business Licenses and Regulations) are hereby amended as follows (new text
underlined, deleted text in strikethrough):
CHAPTER 4.64.
PERMITS FOR RETAILERS OF TOBACCO PRODUCTS
4.64.010 Intent.
(a) This cChapter is adopted to:
(1) Ensure compliance with the business standards and practices of the countyCity;
(2) Encourage responsible retailing of tTobacco pProducts;
(3) Discourage violations of laws related to tTobacco pProducts, especially those that
prohibit or discourage the sale or distribution of tTobacco pProducts and eElectronic
cCigarette pProducts to individuals under twenty- one;
(4) Respond to a new wave of addiction to eElectronic cCigarette pProducts;
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(5) Reduce vulnerability to unexplained illnesses associated with eElectronic
cCigarette pProducts; and
(6) Protect the public health and welfare.
(b) This cChapter does not expand or reduce the degree to which the acts regulated by
federal or state law are criminally proscribed or alter the penalties provided by such laws.
4.64.020 Definitions.
For the purposes of this cChapter, the following definitions shall apply:
(a) "Arm's length transaction" means a sale in good faith and for valuable consideration that
reflects the fair market value in the open market between two or more informed and willing
parties, neither of which is under any compulsion to participate in the transaction. A sale
between relatives, related companies or partners, or a sale for which a significant purpose is
avoiding the effect of the violations of this cChapter is not an arm's length transaction.
(b) "Department" means any department of the City of Palo Alto or County of Santa Clara
designated by the city manager to enforce or administer this chapter, including the County of
Santa Clara's Department of Environmental Health and any agency or person designated by the
Director of the Department of Environmental Health to enforce or administer the provisions of
this cChapter.
(c) "Distribute or distribution" means the transfer, by any person other than a common
carrier, of a tTobacco pProduct to another person for sale or personal consumption.
(d) "Electronic cCigarette pProducts" means any of the following products:
(1) Any device or delivery system that can be used to deliver nicotine in aerosolized
or vaporized form, including, but not limited to, an e-cigarette, e-cigar, e-pipe, vape pen,
or e-hookah.
(2) Any component, part, or accessory of such a device or delivery system that is used
during its operation.
(3) Any flavored or unflavored liquid or substance containing nicotine, whether sold
separately or sold in combination with any device or delivery system that could be used
to deliver nicotine in aerosolized or vaporized form.
(4) Any product for use in an electronic nicotine device or delivery system whether or
not it contains nicotine or tobacco or is derived from nicotine or tobacco.
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(5) Electronic cCigarette pProducts shall not include any battery, battery charger,
carrying case, or other accessory not used in the operation of the device if sold
separately. Electronic cCigarette pProducts shall not include any product that has been
approved by the United States Food and Drug Administration for sale as a tobacco
cessation product or for other therapeutic purposes where that product is marketed
and sold solely for such approved use. See 21 U.S.C. § 387(a). As used in this
sSubsection, nicotine does not include any food products as that term is defined
pursuant to Section 6359 of the California Revenue and Taxation Code section 6359.
(e) Hearing Officer shall mean the hearing officer appointed by the Department in accordance
with County of Santa Clara Ordinance Code (“County Ordinance Code”) section A38-4.
(fe) “Impound” means the legal control exercised by the Department over the use, sale,
disposal, or removal of any Tobacco Products.
(efg) "Ownership" means possession of a ten percent or greater interest in the stock, assets,
or income of a business, other than a security interest for the repayment of debt.
Notwithstanding any other definition in this code, an owner means a person who possesses
ownership.
(fgh) "Permit" means a valid permit issued by the Department to a person to act as a retailer.
(ghi) "Retailer" means any person who sells or distributes tTobacco pProducts for any form
of consideration, whether or not they possess a current Permit. Retailing shall mean the doing
of any of these actions. This definition is without regard to the quantity of tTobacco pProducts
sold or distributed.
(hij) "School" means a public or private elementary, middle, junior high, or high school.
(ik) "Sale and sold" includes any sale, exchange, barter or offer for sale.
(jl) "Tobacco pProduct" means (unless specifically noted elsewhere) any product subject to
Subchapter IX (21 U.S.C. § 387 et seq. ("Subchapter IX")) of the Federal Food, Drug, and
Cosmetic Act. (See 21 U.S.C. § 387a(b) (products subject to Subchapter IX); 21 C.F.R. §§ 1100.1-
1100.3 (tobacco products subject to Subchapter IX) and Electronic Cigarette Products.) Products
subject to Subchapter IX include, but are not limited to, cigarettes, cigarette tobacco, roll-your-
own tobacco, smokeless tobacco, cigars, pipe tobacco, and waterpipe tobacco, and electronic
cigarette products. Products that are not subject to Subchapter IX include accessories of
tobacco products, such as, but not limited to, ashtrays, spittoons, and conventional matches
and lighters that solely provide an external heat source to initiate but not maintain combustion
of a tobacco product.
4.64.030 Requirements and prohibitions.
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(a) Permit required. It shall be unlawful for any person to act as a retailer without first
obtaining and maintaining a pPermit pursuant to this cChapter for each location at which
rRetailing occurs.
(b) Lawful business operation. It shall be a violation of this cChapter for any retailer to violate
any local, state, or federal law applicable to tobacco products or the retailing of such tTobacco
pProducts.
(c) Display of pPermit. Each pPermit shall be prominently displayed in a publicly visible place
at the location identified in the pPermit.
(d) Notice of minimum age for purchase of tTobacco pProducts. Retailers shall post
conspicuously, at each point of purchase, a notice stating that selling tTobacco pProducts to
anyone under twenty-one years of age is illegal and subject to penalties. Such notice shall be
subject to the approval of the public health d Department.
(e) Positive identification required. No retailer shall sell or distribute a tTobacco pProduct to
another individual who appears to be under thirty years of age without first examining the
individual's identification to confirm that the individual is at least the minimum age required
under sState law to purchase and possess the tTobacco pProduct.
(f) Minimum age for individuals selling tTobacco pProducts. No individual who is younger
than the minimum age established by state law for the purchase or possession of tTobacco
pProducts shall engage in retailing.
(g) False and misleading advertising prohibited. A retailer without a pPermit:
(1) Shall keep all tTobacco pProducts out of public view.
(2) Shall not display any advertisement relating to tTobacco pProducts that promotes
the sSale or dDistribution of such products from the rRetailer's location or that could
lead a reasonable consumer to believe that tTobacco pProducts can be obtained at that
location.
(h) Limitation on storefront advertising. No more than fifteen percent of the square footage
of the windows and clear doors of a physical storefront used for rRetailing tTobacco pProducts
shall bear advertising or signs of any sort, and all advertising and signage shall be placed and
maintained in a manner that ensures that law enforcement personnel have a clear and
unobstructed view of the interior of the premises, including the area in which the cash registers
are maintained, from the exterior public sidewalk or entrance to the premises. However, this
latter requirement of this subsection (h) shall not apply to an establishment where there are no
windows or clear doors, or where existing windows are located only at a height that precludes a
view of the interior of the premises by an individual standing outside the premises.
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(i) Flavored Ttobacco pProducts.
(1) Except as permitted in paragraph (3) of this subsection (i), no No rRetailer shall
sell a tTobacco pProduct containing, as a constituent or additive, an artificial or natural
flavor or aroma (other than tobacco) or an herb or spice, including but not limited to
strawberry, grape, orange, clove, cinnamon, pineapple, vanilla, coconut, licorice, cocoa,
chocolate, cherry, mint, menthol, or coffee, that is a characterizing flavor or aroma of
the tTobacco pProduct, smoke, or vapor produced by the tTobacco pProduct.
(2) A tTobacco pProduct shall be subject to a rebuttable presumption that the
product is prohibited by paragraph (1) of this subsection if:
(iA) The product's manufacturer or any other person associated with the manufacture or sale
of tTobacco pProducts makes or disseminates public statements or claims to the effect that the
product has or produces a characterizing flavor or aroma, other than tobacco; or
(iiB) The product's label, labeling, or packaging includes a statement or claim–including any
text and/or images used to communicate information–that the product has or produces a
characterizing flavor or aroma, other than tobacco.
(3) Except as provided in paragraph (4) of this subsection (i), paragraph (1) of this subsection
(i) shall not apply to any retailer that meets all the following criteria:
(i) Primarily sells tobacco products;
(ii) Generates more than sixty percent of its gross revenues annually from the sale of tobacco
products;
(iii) Does not permit any individual under twenty-one years of age to be present or enter the
premises at any time, unless accompanied by the individual's parent or legal guardian, as
defined in Section 6903 of the Family Code;
(iv) Does not sell alcoholic beverages or food for consumption on the premises; and
(v) Posts a sign outside the retail location that clearly, sufficiently, and conspicuously informs
the public that individuals under twenty-one years of age are prohibited from entering the
premises.
(4) No retailer that is issued a new permit after September 2, 2020 shall sell or distribute
flavored tobacco products under paragraph (3) of this subsection (i) after permit issuance. No
retailer that receives a permit renewal after September 2, 2020 shall sell or distribute flavored
tobacco products under paragraph (3) of this subsection (i) after permit renewal. Regardless of
the date of permit issuance or renewal, no retailer shall sell or distribute flavored tobacco
products after September 2, 2020.
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(j) Vending machines prohibited. No tTobacco pProduct shall be sSold or dDistributed to the
public from a vending machine or appliance, or any other coin or token operated mechanical
device designed or used for vending purposes, including, but not limited to, machines or
devices that use remote control locking mechanisms.
(k) Prohibition on sSale or dDistribution of tTobacco pProducts to individuals under twenty-
one. No rRetailer shall sell or distribute any tTobacco pProduct to any individual who is under
twenty-one years of age.
(l) Prohibition on sSale or dDistribution of eElectronic cCigarette pProducts. No person,
whether or not issued a permit, shall Sell or Distribute Electronic Cigarette Products.No retailer
that is issued a new permit after September 2, 2020 shall sell or distribute electronic cigarette
products after permit issuance. No retailer that receives a permit renewal after September 2,
2020 shall sell or distribute electronic cigarette products after permit renewal. Regardless of
the date of permit issuance or renewal, no retailer shall sell or distribute electronic cigarette
products after September 2, 2020.
4.64.040 Eligibility requirements for a pPermit.
(a) No pPermit may be issued to authorize rRetailing at or from other than a fixed location.
For example, rRetailing by persons on foot or from vehicles is prohibited.
(b) No pPermit may be issued to authorize rRetailing at a temporary or recurring temporary
event. For example, rRetailing at flea markets and farmers' markets is prohibited.
(c) No pPermit may be issued to authorize rRetailing at any location where the profession of
pharmacy is practiced by a pharmacist licensed by the sState in accordance with the Business
and Professions Code and where prescription drugs are offered for sale.
(d) No pPermit may be issued to authorize rRetailing at any location within 1,000 feet of a
sSchool, as measured by a straight line between any point along the property line of any parcel
on which a sSchool is located and any point along the perimeter of the pPermit applicant's
proposed business location; provided, however, that the prohibition contained in this
subsection (d) shall not apply to the following:
(1) Any rRetailer of tTobacco pProducts (as such term was defined in the predecessor
Ordinance No. 5418) operating lawfully on June 30, 2018 provided that the rRetailer
obtaineds a pPermit prior to July 1, 2020 pursuant to Sections 4.64.050 and 4.64.060,
and timely reneweds its permit pursuant to Section 4.64.070(b);
(2) Any retailer of electronic smoking devices (as such term was defined in the
predecessor Ordinance No. 5418) operating lawfully on June 30, 2018 provided that the
retailer obtaineds a permit prior to July 1, 2020 pursuant to Sections 4.64.050 and
4.64.060, and timely renews its permit pursuant to Section 4.64.070(b); however, any
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such retailer is subject to the prohibition on the sale and distribution of eElectronic
cCigarette Pproducts established in Section 4.64.030(l); and
(3) Any lawfully operating rRetailer of tTobacco pProducts that would otherwise
become ineligible to receive or renew a pPermit due to the creation or relocation of a
school.
(e) No pPermit may be issued to authorize rRetailing at a location which is within 500 feet of
a location occupied by another retailer, as measured by a straight line between any point along
the perimeter of an existing retailer's business location and any point along the perimeter of
the pPermit applicant's proposed business location; provided, however, that the prohibition
contained in this subsection (e) shall not apply to:
(1) Any rRetailer of tTobacco pProducts (as such term was defined in the predecessor
Ordinance No. 5418) operating lawfully on June 30, 2018 provided that the rRetailer
obtaineds a pPermit prior to July 1, 2020 pursuant to Sections 4.64.050 and 4.64.060,
and timely renews its pPermit pursuant to Section 4.64.070(b); and
(2) Any rRetailers of electronic smoking devices (as such term was defined in the
predecessor Ordinance No. 5418) operating lawfully on June 30, 2018 provided that the
retailer obtaineds a permit prior to July 1, 2020 pursuant to Sections 4.64.050 and
4.64.060, and timely reneweds its permit pursuant to Section 4.64.070(b); however, any
such rRetailer is subject to the prohibition on the sSale and dDistribution of eElectronic
cCigarette pProducts established in Section 4.64.030(l).
(f) Any exemption granted to a rRetailer pursuant to subsections (d) and (e) shall cease to
apply upon the earlier of the following to occur:
(1) The rRetailer fails to timely renew the pPermit pursuant to Section 4.64.070(b).
(2) A new person obtains ownership in the business.
4.64.050 Application procedure.
(a) It is the responsibility of each rRetailer to be informed of all laws applicable to Rretailing,
including those laws affecting the issuance of a pPermit. No rRetailer may rely on the issuance
of a pPermit as a determination by the Citycity or County of Santa Clara that the rRetailer has
complied with all laws applicable to rRetailing. A pPermit issued contrary to this cChapter,
contrary to any other law, or on the basis of false or misleading information supplied by a
rRetailer shall be revoked pursuant to Section 4.64.060.
(b) All pPermit applications shall be submitted on a form supplied by the dDepartment.
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(c) A permitted retailer shall inform the dDepartment in writing of any change in the
information submitted on an application for a permit within fourteen calendar days of a
change.
(d) All information specified in an application pursuant to this section shall be subject to
disclosure under the California Public Records Act (Government Code Section 6250 et seq.) or
any other applicable law, subject to the laws' exemptions.
4.64.060 Permit issuance, denial, and revocation.
(a) Upon the receipt of a complete application for a pPermit, the application fee, and the
annual pPermit fee, the dDepartment shall issue a pPermit unless substantial evidence
demonstrates that one or more of the following bases for denial exists:
(1) The information presented in the application is inaccurate or false.
(2) The application seeks authorization for rRetailing at a location for which this
cChapter prohibits issuance of a pPermit.
(3) The application seeks authorization for rRetailing by a person to whom this
cChapter prohibits issuance of a pPermit.
(4) The application seeks authorization for a Retailer whose Permit has previously
been revoked or who has otherwise violated any provision of this Chapter within the
last 60 months.
(45) The application seeks authorization for rRetailing that is prohibited pursuant to
this cChapter (e.g., mobile vending, eElectronic Ccigarette pProducts) or that is unlawful
pursuant to any other law.
(6) The application seeks authorization for Retailing by a Retailer who has failed to
pay any fees, penalties, or reinspection fees required by this Chapter.
(b) A permit shall be revoked if the dDepartment finds that one or more of the bases for
denial of a permit under this section existed at the time application was made or at any time
before the permit was issued. Such a revocation shall be without prejudice to the filing of a new
pPermit application.
(c) A permit shall be permanently revoked if the Retailer has committed violations as
specified in section 4.64.130.
4.64.070 Permit term, conditions, renewal, and expiration.
(a) Term of pPermit. The term of a permit is one year. A pPermit is invalid upon expiration.
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(b) Conditions of pPermit. As conditions of pPermit issuance and retention, rRetailer shall:
(1) Allow compliance inspections as described in Section 4.64.110 and expressly
consent to inspection of all areas and records of a Retailer’s business required to effectuate the
purpose of this Chapter, including unlocking and allowing access to any area of Retailer’s
business requested by any individual authorized to monitor and facilitate compliance with this
Chapter.
(2) Comply with any order of the Department to impound any product not
authorized to be sold by this Chapter and cooperate with any Departmental seizure of any
product, subject to appeal of those actions.
(3) Failure to comply with these Permit conditions may result in Permit suspension
or revocation as described in Section 4.64.130.
(bc) Renewal of pPermit. The dDepartment shall renew a pPermit upon timely payment of
the annual pPermit fee provided that the rRetailer is in compliancecomplies with this cChapter,
as amended. The dDepartment may, in its discretion, agree to renew any expired pPermit
within the three-month period following expiration if the rRetailer pays the annual pPermit fee
and applicable late charges. For every calendar month, or fraction thereof, that a rRetailer fails
to renew an expired pPermit, a late charge equal to twenty percent of the annual pPermit fee
shall be assessed. A pPermit renewed within three calendar months of expiration shall be
treated as if timely renewed.
(cd) Issuance of pPermit after revocation or expiration of permit. To apply for a new pPermit
more than three calendar months after expiration of a pPermit or following revocation of a
pPermit that was wrongly issued, a rRetailer must submit a complete application for a pPermit,
along with the application fee and annual pPermit fee. The dDepartment shall issue a permit
pursuant to the requirements of Section 4.64.060.
4.64.080 Permits nontransferable.
(a) A pPermit may not be transferred from one person to another or from one location to
another. Whenever a new person obtains ownership in a business for which a pPermit has been
issued, a new pPermit shall be required, but any exemption granted pursuant to Section
4.64.040 shall cease to apply.
(b) Notwithstanding any other provision of this Cchapter, prior violations of this cChapter at
a location shall continue to be counted against a location and Ppermit ineligibility and
suspension periods shall continue to apply to a location unless:
(1) One hundred percent of the interest in the stock, assets, or income of the
business, other than a security interest for the repayment of debt, has been transferred
to one or more new owners; and
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(2) The city Department is provided with clear and convincing evidence, including an
affidavit, that the business has been acquired in an aArm's lLength tTransaction.
4.64.090 Permit conveys a limited, conditional privilege.
Nothing in this cChapter shall be construed to grant any person obtaining and maintaining a
pPermit any status or right other than the limited, conditional privilege to act as a rRetailer at
the location in the city identified on the face of the pPermit. All pPermits are issued subject to
the cCity's right to amend this cChapter, and rRetailers shall comply with all provisions of this
cChapter, as amended.
4.64.100 Fees.
The dDepartment shall not issue or renew a pPermit prior tobefore full payment of any
applicable fees. The city County Board of Supervisors shall, from time to time, establish by
resolution or ordinance the fees to issue or to renew a pPermit. The fees shall be calculated so
as to recover the cost of administration and enforcement of this cChapter, including, for
example, issuing a pPermit, administering the pPermit program, rRetailer education, and
routine rRetailer inspection and compliance checks, documentation of violations, and
prosecution of violators, but shall not exceed the cost of the regulatory program authorized by
this cChapter. All fees and interest earned from such fees shall be used exclusively to fund
administration and enforcement of this cChapter.
4.64.110 Compliance monitoring.
(a) Compliance with this cChapter shall be monitored by the dDepartment. In addition, any
peace officer may enforce the penal provisions of this cChapter. The city managerDepartment
may designate any number of additional individuals to monitor and facilitate compliance with
this cChapter.
(b) The dDepartment or other individuals designated to enforce the provisions of this
cChapter shall check monitor each rRetailer at least once per twelve-month period to
determine if the rRetailer is complying with all laws applicable to retailing, other than those
laws regulating underage access to tTobacco pProducts. Nothing in this paragraph shall create a
right of action in any rRetailer or other person against the cCity, the County of Santa Clara, or its
agents.
(c) Any Retailer found to be in violation of this Chapter shall pay all costs related to
enforcement to ensure retailer’s compliance with this Chapter, including but not limited to,
fees for reinspection to determine compliance after a violation, enforcement costs, litigation
costs, and attorneys’ fees in any administrative or civil matter in which the Department prevails
pursuant to Division A1 of the County Ordinance Code or any other provision of law.
4.64.120 Prevention of underage sales.
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(a) The dDepartment or other departments or individuals designated to enforce the
provisions of this cChapter shall, in conjunction with the police department, check monitor each
rRetailer at least twice per twelve-month period to determine whether the rRetailer is
conducting business in a manner that complies with laws regulating youth access to tTobacco
pProducts. Nothing in this paragraph shall create a right of action in any rRetailer or other
person against the cCity, the County of Santa Clara, or its agents.
(b) The city Department or other departments or individuals designated to enforce the
provisions of this Chapter shall not enforce any law establishing a minimum age for tTobacco
pProduct purchases against an individual who otherwise might be in violation of such law
because of the individual's age ("yYouth dDecoy") if the potential violation occurs when:
(1) The yYouth dDecoy is participating in a compliance check supervised by a peace
officer or a code enforcement official of the cCity or County of Santa Clara;
(2) The yYouth dDecoy is acting as an agent of a dDepartment or individual
designated by the cCity or County of Santa Clara to monitor compliance with this
cChapter; or
(3) The yYouth dDecoy is participating in a compliance check funded in part, either
directly or indirectly through subcontracting, by the cCity, the County of Santa Clara, or
the California Department of Public Health.
4.64.130 Penalties for a violation by a rRetailer with a pPermit.
(a) Administrative fine. In addition to any other penalty authorized by law, an administrative
fine shall be imposed and a permit shall be suspended if any court of competent jurisdiction
determines, or the department finds based on a preponderance of the evidence that the a
rRetailer shall pay a fine if the Retailer, or any of the rRetailer's agents or employees, has
violatedviolates any of the requirements, conditions, or prohibitions of this cChapter, has pled
guilty, "no contest" or its equivalent to such a violation, or has admitted to a such a violation..
(b) Amount of fine. The amount of the administrative fine for each such violation of this
Chapter shall be as follows:
(1) A fine not to exceed one hundred dollars ($100.00) for a first violation within a
twelve-month period;A fine not to exceed $1,000 for each violation identified during the
first instance in which the Retailer has committed a violation or violations;
(2) A fine not to exceed two hundred dollars ($200.00) for a second violation within a
twelve-month period; A fine not to exceed $2,500 for each violation identified during a
subsequent instance if the Retailer has committed a previous violation or violations
within a 60-month period; and
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(3) A fine not to exceed five hundred dollars ($500.00) for each additional violation
within a twelve-month period A fine not to exceed $5,000 for each violation identified
during a subsequent instance after the Retailer twice committed a previous violation or
violations within a 60-month period.
(cb) Time period for permit Permit suspension. In addition to any other penalty authorized
by law, the Department may suspend a permit if the Department demonstrates that the
Retailer or any of the Retailer’s agents or employees has violated any of the requirements,
conditions, or prohibitions of this Chapter. The period of the suspension shall be as follows:
(1) For a first violation of this chapter at a location within any sixty-month period, the
permit shall be suspended for up to thirty calendar days. A suspension not to exceed 30
calendar days for an initial violation.
(2) For a second violation of this chapter at a location within any sixty-month period,
the permit shall be suspended for up to ninety calendar days.A suspension not to
exceed 180 calendar days if a Retailer commits a violation or violations during two
instances within a 60-month period.
(3) For each additional violation of this chapter at a location within any sixty-month
period, the permit shall be suspended for up to one year.When a permit is suspended
based on a violation of this Chapter, the Department shall post a placard at the physical
location used for Retailing Tobacco Products to notify the general public of the
suspension. The placard shall be:
(A) Posted in the front window of the storefront used for Retailing Tobacco Products
within five feet of the front door; or
(B) Posted in a display case mounted on the outside front wall of the physical
location used for Retailing Tobacco Products within five feet of the front door; or
(C) Posted in a location approved by the Department to ensure proper notice to the
general public and to patrons of the physical location used for Retailing Tobacco Products.
(D) Once attached to a building or structure, a placard is not to be removed, altered,
or covered until done so by an authorized representative of the Department or upon written
notification from the Department.
(c) Permanent Permit revocation. In addition to any other penalty authorized by law, the
Department shall permanently revoke a Permit if a retailer commits a violation or violations
during three instances within a 60-month period.
(d) Waiver or reduction of fines and penalties for first violation. The dDepartment may, in its
sole discretion, waive or reduce any fines and penalties for a rRetailer's first violation of any
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requirement, condition, or prohibition of this chaptersection, other than a violation of a law
regulating youth access to tobacco products, if the rRetailer admits the violation in writing and
agrees to forego a hearing on the allegations. Regardless of the dDepartment's waiver of
penalties for a first violation, the violation will be considered in determining the fines and
suspension periods or revocation penalties for any future violation. This subsection shall not
apply to any violation involving a law regulating youth access to Tobacco Products.
(e) Corrections period. The dDepartment shall have discretion to allow a rRetailer a period of
time to correct any violation of any requirement, condition, or prohibition of this cChapter,
other than a violation of a law regulating youth access to tTobacco pProducts. If the
dDepartment exercises its discretion to provide a corrections period, and a rRetailer's violation
is corrected within the time allowed for correction, no penalty shall be imposed under this
section.
(f) Written notice of penalties. Whenever a fine is issued and/or a pPermit is suspended or
revoked based on a violation of this cChapter, the dDepartment shall provide the rRetailer
written notice of the violation and the fine and suspension or revocation, including when the
suspension or revocation shall take effect.
(g) Appeals. Any penalties imposed under this section may be appealed pursuant to Section
4.64.150 of this Chapter.
(h) A timely appeal shall stay enforcement of the appealed penalties until the final
administrative decision of the Department is issued.
4.64.140 Penalties for retailing without a pPermit.
(a) Administrative fine. In addition to any other penalty authorized by law, an administrative
fine and an ineligibility period for application or issuance of a permit a rRetailer shall be
imposed pay a fine if a court of competent jurisdiction determines, or the dDepartment finds
based on a preponderance of evidencedemonstrates, that any the person rRetailer has
engaged in retailing at a location without a valid pPermit, either directly or through the
person's Retailer’s agents or employees., has pled guilty, "no contest" or its equivalent to such
a The amount of the administrative fine for each violation , or has admitted to such a
violation.of this Chapter shall be as follows:
(b) Amount of fine. The amount of the administrative fine for each such violation shall be as
follows:
(1) A fine not to exceed one hundred dollars ($100.00) for a first violation within a
twelve-month period; A fine not to exceed $2,500 for each violation identified during
the first instance in which the Retailer has committed a violation ofor violations without
a valid Permit;
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(2) A fine not to exceed two hundred dollars ($200.00) for a second violation within a
twelve-month period; and A fine not to exceed $5,000 for each violation identified
during a subsequent instance if the Retailer has committed a previous violation or
violations within a 60-month period without a valid Permit; and
(3) A fine not to exceed five hundred dollars ($500.00) for each additional violation
within a twelve-month period. A fine not to exceed $10,000 for each violation identified
during a subsequent instance after the Retailer has twice committed a previous
violation or violations within a 60-month period without a valid Permit.
(cb) Time period for pPermit ineligibility. The ineligibility period shall be as follows:
(1) For a first an initial violation of this section at a location within any sixty-month
period Chapter without a valid Permit, no new pPermit may be issued for to the person
Retailer or the location (unless ownership of the business at the location has been
transferred in an aArm's lLength tTransaction) until thirty calendar days have passed
from the date of the violation.
(2) For a second violation of this section at a location within any sixty-month period,
no new permit may be issued for the person or the location (unless ownership of the
business at the location has been transferred in an arm's length transaction) until ninety
calendar days have passed from the date of the violation. If a Retailer commits a
violation or violations during two instances within a 60-month period without a valid
Permit, no new Permit may be issued to the Retailer or the location (unless ownership
of the business at the location has been transferred in an Arms Length tTransaction)
until one year has passed from the date of the second violation.
(3) For each additional violation of this section at a location If a Retailer commits a
violation or violations during three instances within any sixty60-month period without a
valid Permit, no new permit may be issued for the person or the Retailer and the
location (unless ownership of the business at the location has been transferred in an
aArm's lLength tTransaction) shall be permanently ineligible for a Permit. until one year
has passed from the date of the violation.
(dc) Waiver of for reduction of fines and penalties for first violation. The dDepartment may,
in its sole discretion, waive or reduce any fines and penalties for a retailer's first violation of this
section, unless the violation also involves a violation of a law regulating youth access to tobacco
products, if the rRetailer admits the violation in writing and agrees to forego a hearing on the
allegations. Regardless of the dDepartment's waiver of fines or penalties for a first violation, the
violation will be considered in determining the penalties for any future violation fines and
suspension periods or revocation for any future violation. This subsection shall not apply to any
violation involving a law regulating youth access to Tobacco Products.
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(ed) Written notice of penalties. Whenever a fine is issued and/or a pPermit is suspended
pursuant to this section, the dDepartment shall provide the rRetailer written notice of the fine
and suspension, including when the suspension shall take effect.
(fe) Appeals. Any penalties imposed under this section may be appealed pursuant to Section
4.64.150. A timely appeal shall stay enforcement of the appealed penalties while the appeal is
ongoing.
4.64.150 Appeals.
(a) Any rRetailer served with a written notice of penalties violation may request an
administrative hearing to appeal the existence of the violation, the amount of the fine, and/or
the length of the a suspension, a revocation of a Permit, the sustained impoundment of
Tobacco Products, and/or seizure of Tobacco Products by returning a completed hearing
request form to the Office of the County Hearing Officer within ten days from the date of the
written notice of penalties.
(b) The rRetailer shall include the following in or with the hearing request form:
(1) A statement indicating the reason the rRetailer contests the written notice of
penalties;
(2) Any evidence the rRetailer wants the hHearing oOfficer to consider;
(3) An advance deposit of the amount of any fine challenged; and
(4) The address of the rRetailer and, if available, an email address that can be used
for contact and correspondence by the Office of the County Hearing Officer and the
Department. The rRetailer may request service of notice by mail.
(c) The hearing request form shall be deemed filed on the date received by the Office of the
County Hearing Officer. A timely appeal shall stay enforcement of the appealed penalties while
the appeal is ongoing.
(d) After receiving a timely hearing request form, the Hearing Officer shall notify the
dDepartment as soon as practicable and then shall schedule an administrative hearing. The
Office of the County Hearing Officer shall provide the rRetailer and the dDepartment at least
ten calendar days' written notice of the date, time, and place of the administrative hearing and
the name of the hHearing oOfficer who will conduct the hearing. The notice shall be given to
the rRetailer either by email, if requested, or by first class mail, postage prepaid.
(e) Between the time the rRetailer requests the administrative hearing and the time of the
hHearing oOfficer's decision, the rRetailer, the dDepartment, and each of their representatives
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shall not engage in ex parte communications with the Office of the County Hearing Officer or
the hHearing oOfficer regarding the matters at issue in the hearing.
(f) The hearing shall be conducted by the hHearing oOfficer on the date, time, and place
specified in the notice to the rRetailer. A rRetailer's failure to appear at the hearing shall
constitute an abandonment of the hearing request and a failure to exhaust administrative
remedies as a precedent to judicially challenge the existence of the violation and the imposition
of the fine and suspension.
(g) At the hearing, the rRetailer and the dDepartment shall have the opportunity to present
evidence, including witnesses, relevant to the hHearing oOfficer's determination of the matter.
Neither the provisions of the Administrative Procedure Act (Government Code Section 11500 et
seq.) nor the formal rules of evidence in civil or criminal judicial proceedings shall apply to such
hearing. The hHearing oOfficer may admit any evidence, including witnesses, relevant to the
determination of the matter, except as otherwise provided in Section 4.64.160(c).
(h) The written notice of penalties and any other reports prepared by or for the
dDepartment concerning the violation shall be admissible and accepted by the hHearing
oOfficer as prima facie evidence of the violation and the facts stated in those documents.
(i) The hHearing oOfficer may continue the hearing from time to time, in his or herthe
Hearing Officer’s sole discretion, to allow for its orderly completion of the hearing. After
receiving the evidence submitted at the hearing, the hHearing oOfficer may further continue
the hearing and request additional information from either the dDepartment or the rRetailer.
(j) After considering the evidence and testimony submitted the hHearing oOfficer shall issue
a written decision regarding the matters properly raised in the request for administrative
hearing. The hHearing oOfficer's decision shall:
(1) Be based on a preponderance of the evidence.
(2) Include a statement of the reasons for the decision.
(3) Be issued within twenty calendar days of the close of the hearing.
(4) Be served on both the rRetailer and the dDepartment. The decision shall be given
to the rRetailer either by email, if requested, or by first class mail, postage prepaid.
(k) Based on the hHearing oOfficer's decision, the Office of the County Hearing Officer shall
promptly refund to the rRetailer any amount of the advance fine deposit the dDepartment is
not entitled to and shall provide the remainder to the dDepartment.
(l) The hearing officer's written decision shall constitute the final administrative decision of
the city.
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4.64.160 Enforcement.
(a) Any violation of this cChapter is hereby declared to be a public nuisance.
(b) Causing, permitting, aiding, abetting, or concealing a violation of any provision of this
cChapter shall also constitute a violation of this cChapter.
(c) Whenever evidence of a violation of this cChapter is obtained in any part through the
participation of an individual under the age of twenty-one years old, such an individual shall not
be required over his or hertheir objection to appear or give testimony in any civil or
administrative process brought to enforce this cChapter and the alleged violation shall be
adjudicated based upon the sufficiency and persuasiveness of the evidence presented.
(d) Violations of this cChapter may be remedied by a civil legal action brought by the city
attorney or County of Santa Clara Office of the County Counsel pursuant to dDivision A1 of the
Ordinance Code of the County of Santa Clara, including, but not limited to, administrative or
judicial nuisance abatement proceedings, civil code enforcement proceedings, and suits for
injunctive relief pursuant to XXXXX of this Code. For the purposes of the civil remedies provided
in this chapter, each day on which a tobacco product is offered for sSale in violation of this
cChapter, and each individual retail tobacco product that is sSold or dDistributed in violation of
this cChapter, shall constitute a separate violation of this cChapter.
(e) Any person found guilty of violating any provision of this chapter shall be deemed guilty
of an infraction, punishable as provided by California Government Code § 25132.
(e) Impoundment.
(1) Based upon inspection findings or other evidence, the Department may impound
Tobacco Products that are suspected of being or found to be offered for sSale or Distribution in
violation of this Chapter. The Department may affix a label to the product that shall be
removed only by the Department following final written determination by the Department as
described below.
(2) No impounded Tobacco Products shall be used, removed, disposed, or offered
for Sale unless the impoundment has been released. The decision by the Department may be
appealed pursuant to the procedures set forth in Section 4.64.150.
(3) Within 30 days of final determination whether the impounded products are
authorized for sale under this Chapter, the Department shall release the impounded materials
or order that unauthorized, impounded product shall be destroyed and properly disposed of at
the cost of the Retailer.
(f) Seizure. Tobacco Products offered for sale in violation of this Chapter are subject to
seizure by the Department and shall be forfeited after the Retailer of the Tobacco Products
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seized is given reasonable notice and an opportunity to demonstrate that the Tobacco Products
were not offered for sale in violation of this Chapter. The decision by the Department may be
appealed pursuant to the procedures set forth in Section 4.64.150. Forfeited Tobacco Products
shall be destroyed and properly disposed of at the cost of the Retailer after all internal appeals
have been exhausted and after the time in which to seek judicial review pursuant to Section
4.64.150 of this Chapter has expired.
(g) All Retailers are responsible for the actions of their employees relating to compliance
with this Chapter. The sale, offer to sell, or furnishing of any Tobacco Products by an employee
shall be considered an act of the Retailer.
(fh) The remedies provided by this cChapter are cumulative and in addition to any other
remedies available at law or in equity.
4.64.170. No conflict with federal or state lawNo conflict with federal or state
lawInterpretation.
(a) Nothing in this cChapter shall be interpreted or applied so as to create any requirement,
power, or duty that is preempted by, or in conflict with, federal or state law, rules, or
regulations.
(b) Nothing in this Chapter shall be construed to penalize the purchase, use, or possession of
a Tobacco Product by any person not engaged in the retailing of such products.
SECTION 3. If any section, subsection, clause or phrase of this Ordinance is for any
reason held to be invalid, such decision shall not affect the validity of the remaining portion or
sections of the Ordinance. The Council hereby declares that it should have adopted the
Ordinance and each section, subsection, sentence, clause or phrase thereof irrespective of the
fact that any one or more sections, subsections, sentences, clauses or phrases be declared
invalid.
SECTION 4. The Council finds that this project is exempt from the provisions of the
California Environmental Quality Act (“CEQA”), pursuant to Section 15061 of the CEQA
Guidelines, because it can be seen with certainty that there is no possibility that the ordinance
will have a significant effect on the environment.
//
//
//
//
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SECTION 5. This ordinance shall be effective 31 days after adoption.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
____________________________ ____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
____________________________ ____________________________
Assistant City Attorney City Manager
____________________________
Director of Public Works
____________________________
Chief of Police
____________________________
Director of Administrative Services
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Attachment A - Ordinance
Amending PAMC Chapter
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NOT YET APPROVED
FIRST AMENDED AND RESTATED AGREEMENT BETWEEN
THE COUNTY OF SANTA CLARA
AND CITY OF PALO ALTO FOR
A TOBACCO RETAIL PERMIT PROGRAM
This First Amended and Restated Agreement (“Agreement”), dated for convenience (DATE), is entered into by and between the County of Santa Clara (“County”) and City of Palo Alto (“City”) relating to administration and enforcement of a tobacco retail permit program in the City of Palo
Alto. County and City may be referred to in this Agreement individually as a “Party” and collectively as “Parties.”
Background / Purpose
In 2010, the County added Chapter XXIII to Division A18 of its Ordinance Code (“Chapter XXIII”), thereby establishing a permit requirement for retailers of tobacco products in the unincorporated areas of the County of Santa Clara. The County has since expanded the scope of Chapter XXIII and modified provisions therein. The City has adopted City Chapter 4.64 to mirror the provisions of Chapter XXIII in their entirety, effective July 1, 2018, and intends to
continue updating City Chapter 4.64 to maintain consistency with Chapter XXIII. The City and County intend for the County to administer and enforce the City’s tobacco retail permit program (as described in City Chapter 4.64) within the City, except as otherwise provided in this Agreement. The County intends to cite violators of the City’s City Chapter 4.64 pursuant to this Agreement. Terms used in this Agreement, such as, but not limited to, “tobacco products” and
“retailer,” shall be interpreted in accordance with Chapter XXIII and City Chapter 4.64.now wishes to adopt one or more ordinance(s) to mirror the provisions of Chapter XXIII in their entirety. The City and County intend for the County to administer and enforce the City’s tobacco retail permit program within the City, except as otherwise provided in this Agreement.
The County intends to cite violators of the City’s Ordinance Code pursuant to this Agreement.
Agreement The Parties agree as follows:
1. Designation
The City hereby designates the County to enforce and administer the City Ordinance. The County shall act as the City Manager’s designee, as defined in Palo Alto Municipal
Code (PAMC) section 4.64.020 (b).
1.2. Scope of Work
Each Party shall perform the work as described in Exhibit A, attached hereto and
incorporated herein by this reference.; provided, however, that the County shall have no
responsibility for administering or enforcing any provisions of the City’s tobacco retailer permit ordinance that are in addition to or otherwise different from the County’s provisions.
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Attachment B - County-
Palo Alto Amended and
Restated TRP Agreement
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Page 2 of 12 Agreement for Palo Alto Tobacco Retail Permit Program
3. Legislative Consistency The County’s administration and enforcement under this Agreement is contingent upon
the City’s adoption and maintenance of a City Ordinance that is the same as the County Ordinance in all material respects. 3.1 Within 90 days of the County’s adoption of any material amendment to the County Ordinance, the City’s governing body shall consider and vote upon
an amendment to the City Ordinance that is the same as the County’s amendment in all material respects. If the City does not adopt such an amendment within 90 days of the County’s amendment to the County Ordinance, the County may, in its sole discretion, immediately terminate this Agreement by sending written notice to the City.
3.2 If the City wishes to amend the City Ordinance other than to conform to the County’s prior amendment of the County Ordinance as set forth in Paragraph 3.1 above, the City shall provide the County with the full text of the proposed amendment 120 days prior to adoption of such an
amendment. If the City adopts an amendment to the City Ordinance other than to conform in all material respects to the County’s prior amendment of the County Ordinance, the County may, in its sole discretion, immediately terminate this Agreement by sending written notice to the City.
3.3 The County shall have no responsibility for administering or enforcing any provisions of the City Ordinance that are in addition to or otherwise materially different from the County Ordinance.
2.4. Relationship of Parties / Independent Contractors Each Party shall perform all work described herein as an independent contractor and not as an officer, agent, servant or employee of the other Party. None of the provisions of
this Agreement are intended to create, nor shall be deemed or construed to create, any
relationship between the Parties other than that of independent parties contracting with each other for purpose of effecting the provisions of this Agreement. The Parties are not, and will shall not be construed to be in a relationship of joint venture, partnership or employer-employee. Neither Party has the authority to make any statements,
representations or commitments of any kind on behalf of the other Party, or to use the
name of the other Party in any publications or advertisements, except with the written consent of the other Party or as is explicitly provided herein. Each Party will shall be solely responsible for the acts and omissions of its officers, agents, employees, contractors, and subcontractors, if any.
3.5. Term of Agreement
This Agreement is effective from the date that this Agreement is executed by all Parties,
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until terminated in accordance with this Agreement.
4.6. Payment
The City shall adopt, by reference, the County’s fee schedule for annual tobacco retail permits and tobacco retail permit applications. All annual permit fees and application fees for the tobacco retail permit program shall be collected and retained by the County.
The County shall advise City of the initial permit fee and application fee necessary to cover County’s anticipated costs under this Agreement. Thereafter, the County shall provide notice to the City and tobacco retail permit holders in the City of any increases or decreases in the cost of the County’s work under this Agreement and any need to revise permit fees and/or application fees accordingly.
7. Termination Except as provided in paragraphs 3.1 and 3.2 above, which allow for immediate termination in the specified circumstances, eEither Party may terminate this Agreement
for any reason upon ninety (90) days’ written notice. Upon service of a termination notice, the Parties shall use their best efforts to develop a mutually-agreeable plan for transition of the County’s responsibilities to the City. Upon termination of this Agreement, the City will be responsible for replacing the County-issued permits.
8. Indemnification and Insurance In lieu of and notwithstanding the pro rata risk allocation, which might otherwise be imposed between the Parties pursuant to Government Code Section 895.6, the Parties
agree that all losses or liabilities incurred by Party shall not be shared pro rata but,
instead, County and City agree that, pursuant to Government Code Section 895.4, each of the Parties hereto shall fully indemnify and hold each of the other Parties, their officers, board members, employees, and agents, harmless from any claim, expense or cost, damage or liability imposed for injury (as defined in Government Code Section 810.8)
occurring by reason of the negligent acts or omissions or willful misconduct of the
indemnifying party, its officers, employees or agents, under or in connection with or arising out of any work, authority or jurisdiction delegated to such party under this Agreement. No party, nor any officer, board member or agent thereof shall be responsible for any damage or liability occurring by reason of the negligent acts or omissions or
willful misconduct of the other Parties hereto, their officers, board members, employees,
or agents, under or in connection with or arising out of any work authority or jurisdiction delegated to such other Parties under this Agreement. City shall indemnify and hold harmless County, its officers, agents and employees for 50 percent of the amount of any claim, liability, loss, injury or damage arising out of, or in
connection with, performance of this Agreement by County and/or its agents, employees
or subcontractors, excepting only loss, injury or damage caused by the negligence or willful misconduct of personnel employed by County. City shall immediately notify County upon learning of any potential or asserted claim, liability, loss, injury or damage
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for which the City may be obligated to indemnify or hold the County harmless pursuant to any provision of this Agreement.
Without limiting the indemnification both Parties, City shall maintain or cause to be maintained the following insurance coverage: (1) a policy of commercial general liability with limits of liability not less than one million dollars ($1,000,000) per occurrence and two million dollars ($2,000,000) annual aggregate; (ii) a policy of workers’ compensation providing statutory coverage; (iii) a policy of professional or public officials errors and
omissions liability with limits of liability not less than one million dollars ($1,000,000) per occurrence/aggregate; and (iv) such other insurance or self-insurance as shall be necessary to insure it against any claim or claims for damages arising under the Agreement. Each Party’s Iinsurance afforded by the commercial general liability policy shall be endorsed to provide coverage to the other Party County as an additional insured.
A Certificate of Insurance certifying that coverage as required herein has been obtained to the other Party.shall be provided to the County. The requirements of this section may be satisfied by the provision of similar coverage through a self-insurance program.
9. Compliance with All Laws, Rules, Regulations, Policies and Procedures
The Parties shall comply with all applicable federal, state and local laws, rules, regulations, policies and procedures.
10. Monitoring / Records
10.1 Monitoring Each Party shall permit the other Party to monitor its performance of this Agreement. To the extent permitted by law, such monitoring may include, but not
be limited to, audits and review of records related to this Agreement. Upon
request, a Party shall provide the other Party with access to facilities, financial and employee records that are related to the purpose of the Agreement, except where prohibited by federal, state or local laws, regulations or rules. Monitoring shall be permitted at any time during normal business hours upon no less than 10 business
days advance notice and may occur up to one year following termination of the
Agreement. Each Party shall designate a project director/coordinator responsible for overseeing that Party’s performance of this Agreement. Each Party shall notify
the other Party in writing of the designation of the project director/coordinator and
of any change thereto. 10.2 California Public Records Act The Parties are public agencies subject to the disclosure requirements of the
California Public Records Act (“CPRA”). In the event of a CPRA request for
information related to this Agreement, each Party will use its best efforts to notify the other Party before such disclosure.
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Restated TRP Agreement
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11. Representations and Warranties
11.1 Conflict of Interest
Each Party City shall comply, and require its subcontractors to comply, with all applicable (i) requirements governing avoidance of impermissible client conflicts; and (ii) federal, state and local conflict of interest laws and regulations including, without limitation, California Government Code section 1090 et. seq., the California Political Reform Act (California Government Code section 87100 et.
seq.) and the regulations of the Fair Political Practices Commission concerning disclosure and disqualification (2 California Code of Regulations section 18700 et. seq.). Failure to do so constitutes a material breach of this Agreement and is grounds for immediate termination of this Agreement by the Countyeither Party.
In accepting this Agreement, City covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of this Agreement. City further covenants that, in the performance of this Agreement, it will not employ any contractor or person having such an interest. City, including but not
limited to City’s employees and subcontractors, may be subject to the disclosure and disqualification provisions of the California Political Reform Act of 1974 (the “Act”), that (1) requires such persons to disclose economic interests that may foreseeably be materially affected by the work performed under this Agreement, and (2) prohibits such persons from making or participating in making decisions
that will foreseeably financially affect such interests. If the disclosure provisions of the Political Reform Act are applicable to any individual providing service under this Agreement, City shall, upon execution of this Agreement, provide the County with the names, description of individual duties to be performed, and
email addresses of all individuals, including but not limited to City’s employees,
agents and subcontractors, that could be substantively involved in “making a governmental decision” or “serving in a staff capacity and in that capacity participating in making governmental decisions or performing duties that would be performed by an individual in a designated position,” (2 CCR 18701(a)(2)), as
part of City’s service to the County under this Agreement. City shall immediately
notify the County of the names and email addresses of any additional individuals later assigned to provide such service to the County under this Agreement in such a capacity. City shall immediately notify the County of the names of individuals working in such a capacity who, during the course of the Agreement, end their
service to the County.
If the disclosure provisions of the Political Reform Act are applicable to any individual providing service under this Agreement, City shall ensure that all such individuals identified pursuant to this section understand that they are subject to
the Act and shall conform to all requirements of the Act and other laws and
regulations listed in this subsection including, as required, filing of Statements of Economic Interests within 30 days of commencing service pursuant to this Agreement, annually by April 1, and within 30 days of their termination of service
Item 8
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pursuant to this Agreement. 11.2 Authority
Each individual executing this Agreement on behalf of a Party represents that he or she is duly authorized to execute and deliver this Agreement on that Party’s behalf.
//
//
12. Assignment, Delegation, Subcontracting
Neither Party may assign any of its rights, delegate any of its duties or subcontract any portion of its work or business under this Agreement without the prior written consent of
the other Party, which such other Party may withhold in its sole and absolute discretion. No assignment, delegation or subcontracting will release a Party from any of its obligations or alter any of its obligations to be performed under the Agreement.
13. Governing Law, Jurisdiction and Venue
This Agreement shall be construed and its performance enforced under California law. In the event that suit shall be brought by either Party to this Agreement, the Parties agree that venue shall be exclusively vested in the state courts of the County of Santa Clara or, if federal jurisdiction is appropriate, exclusively in the United States District Court for the
Northern District of California, in San Jose, California.
14. Waiver
No delay or failure to require performance of any provision of this Agreement shall
constitute a waiver of that provision as to that or any other instance. Any waiver granted by a Party must be in writing, and shall apply to the specific instance expressly stated.
15. Notice
Any notice required to be given by either Party, or which either Party may wish to give, shall be in writing and served either by electronic mail or be delivered personally,personal delivery or sent by certified or registered mail, postage prepaid, or by private messenger or courier services and addressed as follows:
If to COUNTY: If to CITY:
County of Santa Clara Public Health Department Sara H. Cody, MD Health Officer and Public Health Director 976 Lenzen Avenue150 W. Tasman Drive
San Jose, CA 9512695134
City of Palo Alto Brad EgglestonMike Sartor, Director of Public Works 250 Hamilton Ave., 6th Fl. Palo Alto, CA 94301
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Palo Alto Amended and
Restated TRP Agreement
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Page 7 of 12 Agreement for Palo Alto Tobacco Retail Permit Program
With a copy to:
County of Santa Clara Public Health Department Contracts and Compliance Unit 976 Lenzen Avenue. Second Floor150 W. Tasman Drive San Jose, CA 9512634 PHDContracts@phd.sccgov.org
Notice shall be deemed effective on the date personally delivered or, if mailed, three (3) days after deposit in the mail. Either Party may designate a different person and/or address for the receipt of notices by sending written notice to the other Party.
16. Third Party Beneficiaries
This Agreement does not and is not intended to confer any rights or remedies upon any person or entity other than the Parties.
17. Entire Agreement This document represents the entire Agreement between the Parties with respect to the subject matter hereof. All prior negotiations and written and/or oral Agreements between the Parties with respect to the subject matter of this Agreement are merged into this
Agreement.
18. Amendments
This Agreement may only be amended by a written instrument signed by the Parties.
19. Survival The rights and duties under the following provisions shall survive the termination or
expiration of this Agreement: Section 6 8 – Indemnification and Insurance; Section 108 –
Monitoring/ Records; Section 119 – Conflicts of InterestRepresentation and Warranties; and Section 1317 – Governing Law, Jurisdiction, and Venue/Venue, and in any instrument, certificate, exhibit, or other writing attached hereto and incorporated herein.
20. Severability
If any term, covenant, condition or provision of this Agreement, or the application thereof to any person or circumstance, shall to any extent be held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, covenants,
conditions and provisions of this Agreement, or the application thereof to any person or
circumstance, shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby.
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Palo Alto Amended and
Restated TRP Agreement
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21. Contract Execution
Unless otherwise prohibited by law or City or County policy, the Parties agree that an
electronic copy of a signed contract, or an electronically signed contract, has the same force and legal effect as a contract executed with an original ink signature. The term “electronic copy of a signed contract” refers to a transmission by facsimile, electronic mail, or other electronic means of a copy of an original signed contract in a portable document format. The term “electronically signed contract” means a contract that is
executed by applying an electronic signature using technology approved by the CountyParties. This agreement
22. Counterparts
This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument. //
// IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates written below.
Signed:
County of Santa Clara:
City of Palo Alto
Gene ClarkMatthew Hada
Chief Procurement OfficerDirector
of Procurement
Date Brad EgglestonEd Shikada
Director of Public WorksCity
Manager
Date
Approved as to Form and Legality:
Approved as to Form:Attest:
Jenny LamJessica Mar
Deputy County Counsel
Date Tim Shimizu
Assistant City AttorneyLesley Milton Palo Alto City Clerk
DateD
ate
Approved:
Approved as to Form:
Sara H. Cody, MD Health Officer and Public Health Date Molly Stump Palo Alto City Attorney Date
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Restated TRP Agreement
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Director
Approved:
Tina Cordero CSCHS Chief Fiscal Officer Date
County of Santa Clara: City of Palo Alto
Dave Cortese, President Date DateBoard of Supervisors
Approved as to Form and Legality:
Jenny S. Lam Date Deputy County Counsel
Approved:
John Cookinham DateSCVHHS Chief Financial Officer
Exhibits to this Agreement:
Exhibit A: Description of Roles by Agency
Attest:
Megan Doyle Date Clerk of the Board of Supervisors
Approved:
Sara H. Cody, MD Date Health Officer and Public Health Director
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Palo Alto Amended and
Restated TRP Agreement
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EXHIBIT A DESCRIPTION OF ROLES BY AGENCY
County of Santa Clara
Department of Environmental Health
1. Provide permit applications to all new retailers selling tobacco products in the City of
Palo Alto and issue permits to eligible applicants.
2. Ensure all existing tobacco retail permits that meet and maintain eligibility requirements
are renewed on an annual basis.
3. Maintain database tracking system for all permitted tobacco retailers.
4. Provide list of permitted tobacco retailers to Public Health Department and City of Palo
Alto on an annual basis or more frequently as requested.
5. Collect required permit fees.
6. Meet with all related personnel to: (1) coordinate enforcement strategy; and (2)
develop/maintain policy and procedure for enforcement.
7. Conduct at least one annual inspection of tobacco retailers to ensure compliance with
local, state, and federal laws (except sales to underage individuals).
8. Meet with all related personnel as necessary to: (1) coordinate post compliance check
strategy; and (2) next steps for violations.
9. Conduct follow up inspections, including for complaints received by the public, if
necessary, for ensuring compliance with the tobacco retail permit ordinance. Provide and
promote a clear process for the public to file and track complaints for potential violations
of the tobacco retail permit ordinance.
10. Respond to requests for information from Palo Alto tobacco retailers and the public
regarding requirements under the tobacco retail permit ordinance.
11. Keep records of inspection outcomes for each tobacco retailer and provide annual
inspection report summaries to a single point of contact at the Public Health
Department.
12. Take appropriate enforcement action, as appropriate, to address violations.
13. Notify the City of Palo Alto when Notice of Violations (NOVs) are issued as a result of
violations of the ordinance.
14. Issue NOVs per Ordinance and ensure the tobacco retailer corrects violations and
executes all required corrections identified in the NOV.
15. Coordinate with the Office of County Hearing Officer as appropriate on hearings,
including to supply information on violations where an appeal is requested.
Public Health Department
1. Provide initial list of tobacco retailers to Department of Environmental Health to send
out permit applications.
2. Obtain lists from California Department of Tax and Fee Administration and monitor
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for any new retailers.
3. Provide on-going technical assistance to Department of Environmental Health on
ordinance requirements. This may include trainings for inspectors, research on flavored
and emerging products, and development of educational materials for tobacco retailers.
4. Map any new retailers to ensure they meet eligibility requirements related to distance
from schools, distance from existing tobacco retailers, and that under the ordinance the
retailer meets all other eligibility requirements.
5. If a business seeking a tobacco retail permit is deemed ineligible by the County due to
ordinance requirements, including attaching any relevant documentation supporting the
basis for business ineligibility (e.g. maps of business location; documentation of
pharmacy license status; copies of 3 or more NOVs issued in a 60-month period.
6. Proactively engage the business community so that they are aware of the TRL
ordinance (e.g., effective date, requirements, fines/penalties) as appropriate.
7. Coordinate with the Office of County Hearing Officer and County Counsel as
appropriate on appeals hearings.
8. Provide an annual update to appropriate Palo Alto staff on enforcement and compliance
activities and outcomes for the program.
City of Palo Alto
Police Department
1. Funding and staffing permitting, cConduct undercover decoy operations at tobacco
retailers to ensure compliance with laws regarding sales of tobacco products to underage
individuals laws. Prior to performing operations, notify Department of Environmental
Health of planned operation dates.
2. Issue citations for any violations of laws regarding sales of tobacco sales products to
underage individuals laws (e.g. PC § 308(a), Palo Alto Municipal Code Chapter 4.64,
CA Business and Professions Code § 22958).
3. Immediately notify the Department of Environmental Health on outcomes of
enforcement operations within 3-5 days of the performed operation. Provide copies
of all documentation associated with the violation: a copy of the citation, written
reports/records, or any additional evidence of violation (e.g. receipts, photo copies
of the tobacco product sold to the underage individual) to the Department of
Environmental Health.
4. Coordinate with the Office of County Hearing Officer and County Counsel as
appropriate on appeals hearings.
Public Works Department
1. Publish information on the City of Palo Alto’s website on the TRP tobacco retail permit
ordinance, for example: where tobacco retailers can get more information on the
Item 8
Attachment B - County-
Palo Alto Amended and
Restated TRP Agreement
Item 8: Staff Report Pg. 33 Packet Pg. 234 of 302
Page 12 of 12 Agreement for Palo Alto Tobacco Retail Permit Program (Dec. 2023)
requirements for selling tobacco in Palo Alto, and how the public can file a complaint or
request more information about the TRP tobacco retail permit ordinance.
2. Act as a resource to other cities that may be interested in a similar partnership with the
County.
3. Update ordinance as needed in collaboration with City Attorney and the County
Departments.
Item 8
Attachment B - County-
Palo Alto Amended and
Restated TRP Agreement
Item 8: Staff Report Pg. 34 Packet Pg. 235 of 302
City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Planning and Development Services
Meeting Date: September 23, 2024
Report #:2408-3400
TITLE
REINTRODUCED FIRST READING: Adopt an Ordinance Adding Chapter 18.29 and Amending
Chapters 18.14, 18.24, 18.70, and 16.65 in the Palo Alto Municipal Code as well as Amendments
to the Zoning District Map, and Rezoning of Parcels Within the NVCAP area (PREVIOUSLY
INTRODUCED: August 5, 2024 PASSED 6-1, Kou no)
RECOMMENDATION
Adopt an Ordinance Adding Chapter 18.29 and Amending Chapters 18.14, 18.24, 18.70, and
16.65 in the Palo Alto Municipal Code as well as Amendments to the Zoning District Map, and
Rezoning of Parcels Within the NVCAP area.
BACKGROUND
The City Council approved a resolution adopting the North Ventura Coordinated Area Plan and
certifying associated environmental documents on August 5, 2024. In conjunction with the
resolution, the City Council introduced an ordinance (6-1) that adds Chapter 18.29 and amends
Chapters 18.14, 18.24, and 16.65 in the Palo Alto Municipal Code. Council directed the
following modifications to the ordinance:
1. Amend the ordinance and NVCAP to require parking in compliance with PAMC 18.52
and 18.54 for areas beyond the boundary of AB 2097.
2. Amend the proposed ordinance section 18.29.100 to allow a nonconforming use to be
discontinued for up to two years instead of one year as set forth in PAMC 18.70.
3. To the extent allowed by State Law require EV and ADA parking spaces within the
NVCAP boundaries.
4. Apply a 15-foot setback from Park Boulevard on either side of the street.
Attachment A provides a draft ordinance incorporating this Council direction as well as one
additional amendment proposed by staff.
ANALYSIS
Following the City Council’s review on August 5, 2024, two changes are proposed to the subject
ordinance that staff believes consistent with prior Council direction. These changes arguably
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Item 9 Staff Report
Item 9: Staff Report Pg. 1 Packet Pg. 236 of 302
introduce new or refined policy direction and therefore staff is re-introducing the ordinance as
first reading; a second reading will follow about two weeks later if approved on consent. Three
councilmembers may pull the ordinance off consent if there are questions or concerns with the
changes.
Council Motion to Extend Nonconforming Use Timeline
In the course of preparing the Council-directed amendments, staff encountered a policy
question regarding a situation where an existing empty building or tenant space that was
previously occupied by a conforming land use loses its ability to re-establish that prior use
under the new NVCAP regulations. For instance, if a building was previously occupied by a
permitted auto repair use but is vacant or has been vacant for some time upon ordinance
adoption – that use could be precluded from being re-established immediately upon the
effective date of the rezoning ordinance. This approach does not afford property owners in that
or a similar situation sufficient time (from ordinance adoption) to find a replacement tenant
should there be interest in extending the newly nonconforming use. It may also be inconsistent
with the direction Council provided to extend the period of discontinuance for other existing,
but soon to be non-conforming land uses, from one to two years. Accordingly, staff has
modified the ordinance to reflect a two-year discontinuance period for existing land uses that
become nonconforming after ordinance implementation and for buildings or tenant spaces that
are vacant at time of ordinance adoption and were previously occupied by a formerly
conforming land use. These amendments were added into PAMC Chapter 18.70
(Nonconforming Uses and Noncomplying Facilities) rather than Chapter 18.29 (North Ventura
(NV) District Regulations) for administrative convenience and because similar questions may
arise outside of the NVCAP.
Transition of Office Uses in the NVCAP
The ordinance presented to the Council in August did not accurately reflect prior Council
guidance on treatment of existing office buildings within the project boundary after ordinance
implementation. Staff reported and the ordinance reflected a policy that would have office uses
terminate based on a schedule set forth in the zoning code, typically ten years for older
buildings and up to 35 years for recent construction (PAMC 18.70.070). This policy is
inconsistent with prior Council direction from January 10, 2022, where staff was directed to
allow office uses to naturally transition into conforming uses over time and not deliberately
amortize these land uses.
To align the NVCAP with the City Council’s prior direction, staff modified the language under
the NVCAP ordinance Section 18.29.100 to permit existing office use and facilities to remain,
but recognizing that they are still nonconforming use in the NVCAP area. The language is based
on the nonconforming use provisions from the Downtown Commercial (CD) zoning district
chapter. recognizing that they are still nonconforming use in the NVCAP area. The language is
based on the nonconforming use and noncomplying facilities provisions from the Downtown
Commercial (CD) zoning district chapter.
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Item 9 Staff Report
Item 9: Staff Report Pg. 2 Packet Pg. 237 of 302
Property owners with office holdings in the project boundary who have been following the
NVCAP process alerted staff of this discrepancy and would have likely objected at the hearing if
they had fully appreciated the implications of the draft ordinance. Note, this modification is not
applicable to the development agreement between the City and the Sobrato Organization
approved in 2023.
Either policy direction is available to the Council to implement but staff has modified the
ordinance to reflect the prior guidance allowing for a natural transition as opposed to forced
amortization.
As noted previously, because these issues were not raised when the Council previously
discussed the item, this ordinance is being re-presented as a new first reading. Should the
Council wish to discuss the issue or provide alternative direction to staff, this it may pull the
item from the consent calendar and scheduled for another hearing and direction provided to
staff. The ordinance otherwise reflects what was previously reviewed or directed by Council.
FISCAL/RESOURCE IMPACT
The implementation of the proposed ordinances is not anticipated to have any direct fiscal
impacts on the City budget.
ENVIRONMENTAL REVIEW
On August 5, 2024, the City Council adopted the NVCAP and certified the Supplemental
Environmental Impact Report (SEIR) and other associated environmental documents. Because
the ordinance is implementing the adopted NVCAP, no additional environmental analysis is
needed pursuant to California Public Resources Code Section 21080.5.
ATTACHMENTS
Attachment A: Ordinance adding Chapter 18.29 and amending Chapters 18.14, 18.24, 18.70,
and 16.65
APPROVED BY:
Jonathan Lait, Planning and Development Services Director
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Ordinance No. _____
Ordinance of the Council of the City of Palo Alto Adding Chapter 18.29 (North Ventura
(NV) District Regulations) and Amending Chapters 18.14 (Housing Incentives), 18.24
(Contextual Design Criteria and Objective Design Standards), 16.65 (Citywide
Affordable Housing Requirements) to Implement the North Ventura Coordinated Area
Plan (NVCAP) and 18.70.040 (Nonconforming use – Discontinuance)
The Council of the City of Palo Alto ORDAINS as follows:
SECTION 1. Findings and Declarations. The City Council finds and declares as follows:
A. On November 13, 2017, the City Council for the City of Palo Alto (City) certified a Final
Environmental Impact Report (EIR) for the City of Palo Alto 2030 Comprehensive Plan through
Resolution No. 9720, made findings in relation to the Final EIR, adopted a mitigation monitoring
and report plan (MMRP), and adopted a statement of overriding considerations through
Resolution No. 9721 and adopted the City of Palo Alto 2030 Comprehensive Plan through
Resolution No. 9722.
B. The City of Palo Alto 2030 Comprehensive Plan Policy L-1.7 and Program L-4.10 calls for the
preparation of a plan for the North Ventura and surrounding California Avenue area in order to
establish the future of the North Ventura area as a walkable neighborhood with multi-family
housing, ground-floor retail, a public park, creek improvements, and an interconnected street
grid.
C. On November 6, 2017, the City Council adopted a Resolution No. 9717 to initiate the local
planning process for a North Ventura Coordinated Area Plan in accordance with Palo Alto
Municipal Code Section 19.10.020.
D. On April 30, 2018, the City Council appointed a total of 14 members of the working group to advise
the staff, boards/commissions, and the Council during the preparation of the plan.
E. The City conducted extensive community outreach in multiple languages since the NVCAP process
has initiated in November 2017 including 17 meetings of the NVCAP Working Group; several
community pop-up events; numerous meeting with stakeholders including school district,
commercial property owners and tenants, interest groups in housing and transportation; two
community workshops; one meeting of the Architectural Review Board (ARB); two meetings of
the Historic Resources Board (HRB); six meetings of the Planning and Transportation Commission
(PTC); and seven meetings of the City Council.
F. Pursuant to the provisions and requirements of CEQA and CEQA Guidelines Section 15163, the
City as lead agency, prepared a Supplemental Environmental Impact Report to the 2017
Comprehensive Plan Final EIR (SEIR) to analyze the potential environmental impacts resulting
from adopting the NVCAP.
G. On May 8, 2024, the PTC held a duly and properly noticed public hearing to consider a draft of the
SEIR and the NVCAP, and recommended that the City Council adopt the draft NVCAP.
H. On August 5, 2024, the City Council conducted a duly and properly noticed public hearing to take
public testimony, consider the SEIR, reviewed the NVCAP and all pertinent maps, documents and
exhibits, including the staff report, and all attachments, and oral and written public comments.
I. On August 5, 2025, the City Council adopted the NVCAP and certified SEIR and other
environmental documents associated with the NVCAP.
Item 9
Attachment A - Ordinance
adding Chapter 18.29 and
amending Chapters
18.14, 18.24, 18.70, and
16.65
Item 9: Staff Report Pg. 4 Packet Pg. 239 of 302
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J. The City Council now desires to adopt modifications to the Palo Alto Municipal Code to implement
the NVCAP.
SECTION 2. Chapter 18.29 (North Ventura (NV) District Regulations) of Title 18 (Zoning) of the
Palo Alto Municipal Code is added to read as follows:
CHAPTER 18.29
NORTH VENTURA (NV) DISTRICT REGULATIONS
18.29.010 Purpose
18.29.020 Applicability of Regulations
18.29.030 Zoning Districts
18.29.040 Definitions
18.29.050 Permitted Uses
18.29.060 Development Standards
18.29.070 Parking and Loading
18.29.080 Context-Based Design Criteria and Objective Design Standards
18.29.090 Housing Incentive Programs for NV District
18.29.010 Purpose
The purpose of the North Ventura district is to implement the vision and framework of the North
Ventura Coordinated Area Plan (NVCAP) through use regulations and development standards.
18.29.020 Applicability of Regulations
(a) The North Ventura districts shall apply to properties within the NVCAP and designated as North
Ventura Coordinated Area Plan within the Palo Alto Comprehensive Plan. Where designated, the
regulations set forth in this chapter shall apply in lieu of the comparable provisions established by the
underlying zoning district regulations.
(b) Refer to the NVCAP for design guidelines related to streets and buildings in conjunction with the
regulations contained within this chapter.
18.29.030 Zoning Districts
The North Ventura districts shall apply to properties designated on the zoning map by the symbol “NV” in
front of the zoning district designation.
The following zoning districts are intended to create and maintain sites for residential, commercial and
mixed-use sites:
(a) Single Family Residential District (NV-R1)
The NV-R1 single family residential district is intended to create, preserve, and enhance areas suitable for
detached dwellings with a strong presence of nature and with open area affording maximum privacy and
opportunities for outdoor living and children’s play. Minimum site area requirements are established to
create and preserve variety among neighborhoods, to provide adequate open area, and to encourage
quality design. Accessory dwelling units, junior accessory dwelling units and accessory structures or
Item 9
Attachment A - Ordinance
adding Chapter 18.29 and
amending Chapters
18.14, 18.24, 18.70, and
16.65
Item 9: Staff Report Pg. 5 Packet Pg. 240 of 302
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buildings are appropriate. Community uses and facilities are allowed to the extent no net loss of housing
would result.
(b) Two Family Residential District (NV-R2)
The NV-R2 two-family residential district is intended to allow a second dwelling unit, under the same
ownership as the initial dwelling unit, in areas designated for single-family use or NVCAP by the Palo Alto
Comprehensive Plan, under regulations that preserve the essential character of single-family use.
Community uses and facilities are allowed to the extent no net loss of housing would result.
(c) Medium Density Multiple-Family Residential District (NV-R3)
The NV-R3 medium density multiple-family residential district is intended to create, preserve and enhance
neighborhoods for multiple-family housing with better transition to lower density residential districts.
Projects at this density are intended for larger parcels that will enable developments to provide their own
parking spaces and to meet their open space needs in the form of garden apartments or cluster
developments. While there is no maximum density in the NV-R3 residential district, the NVCAP anticipates
realistic development yields ranging from 16 to 30 dwelling units per acre based on the applicable
development standards.
(d) High Density Multiple-Family Residential District (NV-R4)
The NV-R4 high density multiple-family residential district is intended to create, preserve and enhance
locations for apartment living at the greater density deemed appropriate for NVCAP. The most suitable
locations for this district are along major transportation corridors which are close to mass transportation
facilities and major employment and service centers. While there is no maximum density in the NV-R4
residential district, the NVCAP anticipates realistic development yields ranging from 61 to 100 dwelling
units per acre based on the applicable development standards.
(e) Low Density Mixed-Use District (NV-MXL)
The purpose of the NV-MXL district is to allow for small-scale commercial and services with limited amount
of residential that is compatible with the surrounding development. While there is no maximum density
in the NV-MXL district, the NVCAP anticipates realistic development yields ranging from three to 17
dwelling units per acre.
(f) Medium Density Mixed-Use District (NV-MXM)
The purpose of the NV-MXM district is to allow for a compatible mix of residential and limited commercial.
While there is no maximum density in the NV-MXM district, the NVCAP anticipates realistic development
yields ranging from 31 to 70 dwelling units per acre.
(g) High Density Mixed-Use District (NV-MXH)
The purpose of the NV-MXH district is to allow for a mix of retail, restaurant, entertainment and
commercial uses on the ground floor with residential on the upper floors, while maintaining a pedestrian-
oriented streetscape. It is intended that the active ground floor retail space required will ensure
neighborhood-oriented retail and services are provided within walking distance of high density
residential. Ground floor active uses are required along El Camino Real. While no maximum density in the
Item 9
Attachment A - Ordinance
adding Chapter 18.29 and
amending Chapters
18.14, 18.24, 18.70, and
16.65
Item 9: Staff Report Pg. 6 Packet Pg. 241 of 302
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NV-MXH district, the NVCAP anticipates realistic development yields ranging from 61 to 100 dwelling units
per acre.
(h) Public Facilities District (NV-PF)
The NV-PF public facilities district is designed to accommodate governmental, public utility, educational,
and community service or recreational facilities. Within the North Ventura area, an approximate one-acre
portion of the NV-PF district may permit a 100% affordable housing project.
18.29.040 Definitions
For the purposes of this chapter, the following definitions shall apply:
(a) “Street yard” means a yard adjoining a street lot line and may also be a front lot line.
18.29.050 Permitted Uses
(a) The uses of land allowed by this chapter in each zoning district are identified in the following tables.
Land uses that are not listed in the tables are not allowed, except where otherwise noted. Where the last
column on the following tables ("Subject to Regulations in") includes a section number, specific
regulations in the referenced section also apply to the use; however, provisions in other sections not
specifically referenced may apply as well.
TABLE 1: PERMITTED AND CONDITIONALLY PERMITTED USES
P = Permitted Use
CUP = Conditional Use Permit Required
TUP = Temporary Use Permit Required
— = Not Permitted
LAND USE NV-
R1
NV-
R2
NV-
R3
NV-
R4
NV-
MXL
(1)(5)
NV-
MXM
(5)
NV-
MXH
NV-
PF
Subject to
Regulations
In:
ACCESSORY AND SUPPORT USES
Accessory facilities
and activities
customarily
incidental to the
permitted use
P P P P P P P — 18.40
18.10.080
18.12.080
Accessory Dwelling
Unit & Junior
Accessory Dwelling
Unit when
accessory to
primary and
permitted
residential use
P P P P P P P — 18.09
Home Occupations,
when accessory to
P P P P P P P P 18.42
Item 9
Attachment A - Ordinance
adding Chapter 18.29 and
amending Chapters
18.14, 18.24, 18.70, and
16.65
Item 9: Staff Report Pg. 7 Packet Pg. 242 of 302
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LAND USE NV-
R1
NV-
R2
NV-
R3
NV-
R4
NV-
MXL
(1)(5)
NV-
MXM
(5)
NV-
MXH
NV-
PF
Subject to
Regulations
In:
permitted
residential use
Horticulture,
Gardening, and
Growing of food
products for
consumption by
occupants of a site
P P P P P P P —
EDUCATIONAL, RELIGIOUS, AND ASSEMBLY USES
Private Clubs,
Lodges, or Fraternal
Organizations,
excluding any such
facility operated as
a business for profit
— — — CUP CUP — — —
Private Educational
Facilities
CUP CUP CUP CUP CUP P P —
Religious
Institutions
CUP CUP CUP CUP P P P —
OFFICE USES(2)
Administrative
Office Services
— — — — P P P — 18.29.050(a)
Medical Offices — — — — P P P — 18.29.050(a)
Professional and
General Business
Offices
— — — — P P P — 18.29.050(a)
PUBLIC/QUASI-PUBLIC USES
Community Centers CUP CUP CUP CUP — — — CUP
(3)
Utility Facilities
essential to
provision of utility
services but
excluding
construction or
storage yards,
maintenance
facilities, or
corporation yards.
CUP CUP CUP CUP CUP CUP CUP —
RECREATION USES
Neighborhood
Recreational
Centers
— — CUP CUP — — — CUP
(3)
Item 9
Attachment A - Ordinance
adding Chapter 18.29 and
amending Chapters
18.14, 18.24, 18.70, and
16.65
Item 9: Staff Report Pg. 8 Packet Pg. 243 of 302
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LAND USE NV-
R1
NV-
R2
NV-
R3
NV-
R4
NV-
MXL
(1)(5)
NV-
MXM
(5)
NV-
MXH
NV-
PF
Subject to
Regulations
In:
Commercial
Recreation
— — — — CUP CUP CUP CUP
(3)
Outdoor Recreation
Services
CUP CUP CUP CUP — CUP CUP CUP
(3)
Youth Clubs — — — — — — — CUP
(3)
RESIDENTIAL USES
Single-Family P P — — — — — —
Two-Family P P — — — — — — 18.42.180
Multiple-Family — — P P P P P P(4)
Residential Care
Homes
P P P P P P P —
RETAIL USES
Eating and Drinking
Services, except
drive-in and take-
out services
— — P P P P P CUP
(3)
18.40.160,
18.29.050(c)
Personal Services
and Retail Services
of a neighborhood-
serving nature
— — P P P P P CUP
(3)
18.40.160,
18.29. 050(c)
Liquor stores — — — — — P P — 18.40.160,
18.29. 050(c)
SERVICE USES
Animal Care,
excluding boarding
and kennels
— — — — P P P — 18.29. 050(c)
Convalescent
Facilities
— — — CUP P P P —
Day Care Centers CUP CUP CUP P P P P — 18.40.160
Large Family Day
Care Homes
P P P P P P P P(3)
Small Family Day
Care Homes
P P P P P P P P(3)
Large Adult Day
Care Homes
CUP CUP P P P P P P(3)
Small Adult Day
Care Homes
P P P P P P P P(3)
Financial Services — — — — P P P — 18.29.050(a)
18.29.060(b)
General Business
Services
— — — — P P P — 18.29. 050(a)
18.29.060(b)
Hotels — — — — — P P — 18.40.160,
18.16.060(d)
Item 9
Attachment A - Ordinance
adding Chapter 18.29 and
amending Chapters
18.14, 18.24, 18.70, and
16.65
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LAND USE NV-
R1
NV-
R2
NV-
R3
NV-
R4
NV-
MXL
(1)(5)
NV-
MXM
(5)
NV-
MXH
NV-
PF
Subject to
Regulations
In:
Personal Services — — — — P P P — 18.40.160,
18.29. 050(c)
18.29.060(b)
AGRICULTURAL AND OPEN SPACE USES
Park uses and uses
incidental to park
operation
— — — — — — — P
All facilities owned
or leased, and
operated or used,
by the City of Palo
Alto, the County of
Santa Clara, the
State of California,
the government of
the United States,
the Palo Alto
Unified School
District, or any
other
governmental
agency, or leased
by any such agency
to another party
— — — — — — — P
Utility Facilities — — — — — — — CUP
TEMPORARY USES
Temporary Uses — — TUP TUP — — — — 18.42.050
Farmer’s Markets — — — — — CUP CUP —
Temporary Parking
Facilities, provided
that such facilities
shall remain no
more than five
years
— — — — — CUP CUP CUP
(3)
Notes:
(1) For NV-MXL zoning district, the total floor area of non-residential uses permitted and conditionally
permitted on a lot shall not exceed 5,000 square feet.
(2) For office uses, total floor area of permitted office uses on a lot shall not exceed 5,000 square feet.
(3) Provided such use is conducted on property owned by the City of Palo Alto, the County of Santa
Clara, the State of California, the government of the United States, the Palo Alto Unified School
District, or any other governmental agency, and leased for said uses.
(4) Only a 100% Affordable Housing Project is permitted. Development shall follow NV-R4 standards.
(5) Ground floor uses shall comply with the ground floor edge framework set forth in NVCAP section
2.3.
Item 9
Attachment A - Ordinance
adding Chapter 18.29 and
amending Chapters
18.14, 18.24, 18.70, and
16.65
Item 9: Staff Report Pg. 10 Packet Pg. 245 of 302
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(a) Office Use Restrictions
(1) Conversion of Ground Floor Housing and Non-Office Commercial to Office Medical, Professional,
and Business offices shall not be located on the ground floor, unless any of the following apply to such
offices:
(A) Have been continuously in existence in that space since the effective date of this ordinance and
as of such date, were neither non-conforming nor in the process of being amortized pursuant to Chapter
18.30(I);
(B) Occupy a space that was not occupied by housing, neighborhood business service, retail services,
personal services, eating and drinking services, or automotive service on the effective date of this
ordinance or thereafter;
(C) Occupy a space that was vacant on the effective date of this ordinance; or
(D) Are located in new or remodeled ground floor area built on or after the effective date of this
ordinance if the ground floor area devoted to housing, retail services, eating and drinking services, and
personal services does not decrease.
(E) Along El Camino Real, the office use has a consistent flow of in-person customers visiting the
business, such as a dentist or medical office.
(2) Size Restrictions on Office Uses in the NV District
(A) Total floor area of permitted office uses on a lot shall not exceed 5,000 square feet.
(b) Late Night Use and Activities
Late Night Use and Activities requirements established in Section 18.42.040 shall apply to NV zoning
districts.
(c) Active Ground Floor Commercial Uses
The NVCAP requires active ground floor uses along the El Camino Real corridor and encourages active
ground floor uses on other designated streets. Active uses are activities and functions that promote social
engagement, vitality, and interaction within a community. Refer to NVCAP, Section 2.3 for detailed
requirements.
(1) Active ground floor commercial uses generally include retail, personal services, neighborhood
business service, and eating and drinking establishments. These may also include other active uses such
as daycare, building lobbies, spaces accessory to residential uses such as fitness rooms, workspaces,
leasing offices, bicycle facilities (Class I) with direct access to the sidewalk. Office uses may be included
only to the extent they are permitted in ground floor regulations, are consistent with 18.29.080(a) and
have a regular flow of in-person customers.
(2) Ground floor commercial uses are required for properties with frontage along El Camino Real, as
shown in the NVCAP Section 2.3 (Ground Floor Edges)
Item 9
Attachment A - Ordinance
adding Chapter 18.29 and
amending Chapters
18.14, 18.24, 18.70, and
16.65
Item 9: Staff Report Pg. 11 Packet Pg. 246 of 302
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(3) Ground floor commercial uses shall have a minimum floor to ceiling height of 14 feet.
(4) Retail or retail-like at the ground floor is required at the intersections of El Camino Real and Olive
Avenue, and El Camino Real and Portage Avenue.
(5) 100% affordable housing projects are exempt from providing ground floor commercial uses.
18.29.060 Development Standards
(a) The following tables specify the development standards that shall apply to NV district properties.
Where the last column on the following tables ("Subject to Regulations in") includes a section number,
specific regulations in the referenced section also apply to the development standard; however,
provisions in other sections may apply as well.
TABLE 1: LOW DENSITY RESIDENTIAL DEVELOPMENT STANDARDS
DEVELOPMENT STANDARD NV-R1 NV-R2 Subject to
Regulations In:
Minimum Setbacks Setback lines imposed by a special
setback map pursuant to Chapter
20.08 of this code may also apply
18.10.050
Street yard (ft) Pepper Ave:
10’ to create a
12’ effective
sidewalk width
(1)
Olive Ave:
10’
Olive Ave:
10’
18.29.020(b)
Height (ft) 35’ 35’
Parking Refer to 18.29.070
Other development standards See regulations
in Chapter 18.12
See regulations
in Chapter 18.10
Notes:
(1) The effective sidewalk width includes the pedestrian clear zone and landscape/furniture zone as
described in PAMC 18.24.020.
TABLE 2: MULTI-FAMILY RESIDENTIAL & MUTLI-FAMILY RESIDENTIAL MIXED-USE DEVELOPMENT
STANDARDS
DEVELOPMENT STANDARD NV-R3
NV-R4
Subject to
Regulations
In:
Minimum Site Specifications
Site Area (ft2)
Site Width (ft)
Site Depth (ft)
8,500
70
100
Minimum Setbacks
Street Yard (ft) Park Blvd.: 15’
Ash St: 5’
Park Blvd.: 15’
Olive Ave.: 20’
18.29.020(b)
Item 9
Attachment A - Ordinance
adding Chapter 18.29 and
amending Chapters
18.14, 18.24, 18.70, and
16.65
Item 9: Staff Report Pg. 12 Packet Pg. 247 of 302
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DEVELOPMENT STANDARD NV-R3
NV-R4
Subject to
Regulations
In:
Acacia Ave: 5’
Portage Ave: 5’
Ash St.: 5’
Page Mill Rd:
sufficient to create a
12’ effective
sidewalk width(2)(3)
Interior Side Yards (ft) 5’ 5’
Interior Rear Yards (ft) 10’ 10’
Build-to-Lines 50% of frontage built to setback(1)
33% of side street built to setback(1)
Maximum Height (ft)
Standard 45’ 65’ 18.29.100
Daylight Plane, for side and rear lot
lines for sites abutting any NV-R1 or
NV-R2 district or abutting a site
containing a single-family or two-
family residential use in a mixed-use
district
10’ initial height
45-degree daylight plane angle
Daylight Plane, for side and rear lot
lines for sites abutting any NV-R3,
NV-R4, Planned Community, or
mixed-use district that does not
contain a single-family or two-family
residential use
Refer to 18.24.050(b)(1)(C)
Maximum Lot Coverage (%)
Base 60 80
Additional area permitted to be
covered by covered patios or
overhangs otherwise in
compliance with all applicable
laws
5 5
Floor Area Ratio (FAR)
Maximum Residential FAR 1.5:1 3.0:1
Maximum Non-residential FAR 0.15:1 0.15:1 18.29.050(c)
Total Mixed-Use FAR 1.5:1 3.0:1
Residential Density (net units per acre)
Maximum units per acre None None
Minimum units per acre 16 61
Minimum Landscape/Open Space
Coverage (%)(4)
30 10
Minimum Usable Open Space (ft2
per unit)
150 150
Minimum Common Open Space (ft2
per unit)
75 75
Item 9
Attachment A - Ordinance
adding Chapter 18.29 and
amending Chapters
18.14, 18.24, 18.70, and
16.65
Item 9: Staff Report Pg. 13 Packet Pg. 248 of 302
*** NOT YET APPROVED ***
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DEVELOPMENT STANDARD NV-R3
NV-R4
Subject to
Regulations
In:
Minimum Private Open Space (ft2
per unit)
50 50
Landscape Requirements 18.40.130
Parking Refer to 18.29.070
Notes:
(1) 25-foot driveway access permitted regardless of frontage.
(2) No parking or loading space, whether required or optional, shall be located in the first 10 feet
adjoining the street property line of any required yard.
(3) Any minimum front, street side, or interior yard shall be planted and maintained as a landscaped
screen excluding areas required for access to the site. A solid wall or fence between 5 and 8 feet in
height shall be constructed along any common interior lot line.
(4) Landscape coverage may be provided above the ground-floor.
TABLE 3: MIXED-USE DEVELOPMENT STANDARDS
DEVELOPMENT
STANDARD
NV-MXL NV-MXM
NV-MXH
Subject to
Regulations
In:
Minimum Site
Specifications
Site Area (ft2)
Site Width (ft)
Site Depth (ft)
None Required
Minimum Setbacks
Street Yard (ft) Ash St.: 5’
Olive Ave.: 10’
Portage Ave: 0’
Pepper Ave: 10’
El Camino
Real: sufficient
to create a 12’
effective
sidewalk
width(1)(2)
El Camino
Real: sufficient
to create a 12’
effective
sidewalk
width(1)(2)
Pepper: 10’
Olive Ave 10’
Ash St: 5’
Park Blvd: 15’
Lambert Ave:
5’
Portage Ave:
5’
Park Blvd: 15’
El Camino Real:
sufficient to
create a 12’
effective
sidewalk
width(1)(2)
Oregon
Expy/Page Mill
Rd: sufficient to
create a 12’
effective
sidewalk(1)(2)
Lambert Ave: 5’
Acacia Ave: 5’
Portage Ave: 5’
18.29.020(b)
Item 9
Attachment A - Ordinance
adding Chapter 18.29 and
amending Chapters
18.14, 18.24, 18.70, and
16.65
Item 9: Staff Report Pg. 14 Packet Pg. 249 of 302
*** NOT YET APPROVED ***
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DEVELOPMENT
STANDARD
NV-MXL NV-MXM
NV-MXH
Subject to
Regulations
In:
Acacia Ave: 5’
Build-to-Lines None For properties abutting El Camino
Real:
50% of frontage built to setback(1)
33% of side street built to
setback(1)
Rear Yard (ft) 10’ 10’ for
residential
portion/ none
for commercial
portion
10’ for
residential
portion/ none
for commercial
portion
Rear Yard abutting
residential zone district
(ft)
10’ 10’ 10’
Interior Side Yard (ft) 10’ 5’ 5’
Build-to-lines None Required
Permitted Setback
Encroachments
Refer to Section 18.40.070
Maximum Setback (ft) Not applicable El Camino
Real: 10’
El Camino Real:
10’
Maximum Lot Coverage
(%)
50 100 100
Minimum
Landscape/Open Space
Coverage (%)
20 10 10
Usable Open Space
(Private and/or
Common) (ft2)
150 per unit 18.16.090
Maximum Height (ft) 18.29.100
Standard 35’ 55’ 65’
Ground Floor Height Refer to Section 18.24.060(c)(5)(A)
Daylight Plane for lot
lines abutting one or
more residential zoning
districts
Daylight plane height and slope shall be identical to
those of the most restrictive residential zoning district
abutting the lot line
Residential Density (net units per acre)
Maximum units per
acre
None Required
Minimum units per
acre
3 31 61
Floor Area Ratio (FAR)
Maximum Residential
FAR
0.5:1 2.0:1 3.0:1
Item 9
Attachment A - Ordinance
adding Chapter 18.29 and
amending Chapters
18.14, 18.24, 18.70, and
16.65
Item 9: Staff Report Pg. 15 Packet Pg. 250 of 302
*** NOT YET APPROVED ***
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DEVELOPMENT
STANDARD
NV-MXL NV-MXM
NV-MXH
Subject to
Regulations
In:
Maximum Non-
residential FAR(4)
0.25:1 0.25:1 0.25:1 18.29.050(c)
18.29.060(c)
Minimum Mixed-Use
Ground Floor
Commercial FAR
0.15:1 0.15:1 0.15:1 18.29.050(c)
Total Mixed-Use FAR 0.5:1(4) 2.0:1 3.0:1
Parking Refer to 18.29.070
Notes:
(1) No parking or loading space, whether required or optional, shall be located in the first 10 feet
adjoining the street property line of any required yard.
(2) Any minimum front, street side, or interior yard shall be planted and maintained as a landscaped
screen excluding areas required for access to the site. A solid wall or fence between 5 and 8 feet in
height shall be constructed along any common interior lot line.
(3) The 150-foot measurement may be reduced to 50 feet at minimum, subject to approval by the
Planning Director, upon recommendation by the Architectural Review Board pursuant to criteria set
forth in Chapter 18.76.
(4) As provided in 18.29.060(c), maximum FAR for hotels shall be 2.0:1. Hotel projects in the NV-MXL
zone may reach a Total Mixed-Use FAR of 2.0:1.
(b) Storefront Guidelines
Where active use and retail frontages are required or located within the NV district on the ground floor,
the following design standards shall apply:
(1) Exterior windows on the ground floor shall use transparent glazing to the extent feasible. Low-e
glass or minimal tinting to achieve sun control is permitted, so long as the glazing appears transparent
when viewed from the ground level.
(2) Window coverings are not permitted on the ground floor during typical business hours. Where
operations preclude transparency (e.g., theaters) or where privacy requires window coverings, sidewalk-
facing frontage shall include items of visual interest including displays of merchandise or artwork; visual
access shall be provided to a minimum depth of three (3) feet.
(3) No more than 10% of the total street-facing building façade or a maximum of 25 feet in width,
whichever is greater, shall be dedicated to mechanical equipment rooms, parking garage entrances, exit
stairs, and other facilities necessary for building operation.
(c) Hotel Regulations
(1) The purpose of these regulations is to allow floor area for development of hotels more than floor
area limitations for other commercial uses, to provide a visitor-serving use that results in an enhanced
business climate, increased transient occupancy tax and sales tax revenue, and other community and
economic benefits to the city.
(2) Hotels, where they are a permitted use, may develop to a maximum FAR of 2.0:1, subject to the
following limitations:
Item 9
Attachment A - Ordinance
adding Chapter 18.29 and
amending Chapters
18.14, 18.24, 18.70, and
16.65
Item 9: Staff Report Pg. 16 Packet Pg. 251 of 302
*** NOT YET APPROVED ***
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(A) The hotel use must generate transient occupancy tax (TOT) as provided in Chapter 2.33 of the
Palo Alto Municipal Code; and
(B) No room stays more than thirty days are permitted, except where the city council approves
longer stays through an enforceable agreement with the applicant to provide for compensating revenues.
(3) Hotels may include residential condominium use, subject to:
(A) No more than twenty-five percent (25%) of the floor area shall be devoted to condominium use;
and
(B) No more than twenty-five percent (25%) of the total number of lodging units shall be devoted
to condominium use; and
(C) A minimum FAR of 1.0 shall be provided for the hotel/condominium building(s); and
(D) Where residential condominium use is proposed, room stays for other hotel rooms shall not
exceed thirty (30) days.
(4) Violation of this chapter is subject to enforcement action for stays more than thirty days not
permitted under the provisions of this chapter, in which case each day of room stay more than thirty days
shall constitute a separate violation and administrative penalties shall be assessed pursuant to Chapters
1.12 and 1.16.
18.29.070 Parking and Loading
All projects shall comply with the parking and loading standards in PAMC Chapters 18.52 and 18.54, unless
a parking reduction is permitted pursuant to state law. If a reduction in automobile parking is permitted
under Government Code Section 65863.2, a project will be subject to the requirement to provide electric
vehicle spaces and accessible parking spaces that would have otherwise applied to the development if
Government Code Section 65863.2 did not apply.
18.29.080 Context-Based Design Criteria and Objective Design Standards
In addition to the development standards prescribed in 18.29.050, all Housing Development Projects shall
comply with the objective standards outlined in Chapter 18.24, as defined herein. All other developments,
and Housing Development Projects that elect to deviate from one or more objective design standards in
Chapter 18.24, shall meet the Context Based Design Criteria, as determined by the Director pursuant to
the Architectural Review process. In the event of any conflict between the development standards
established in this Chapter and those established in Chapter 18.24, the NVCAP standards shall prevail.
(a) Multiple Family Context-Based Design Criteria
Refer to Section 18.13.060 for the Context Based Design Criteria.
(b) Mixed-Use and Commercial Context-Based Design Criteria
Refer to Section 18.16.090 for the Context Based Design Criteria.
18.29.090 Housing Incentive Programs for NV District
Item 9
Attachment A - Ordinance
adding Chapter 18.29 and
amending Chapters
18.14, 18.24, 18.70, and
16.65
Item 9: Staff Report Pg. 17 Packet Pg. 252 of 302
*** NOT YET APPROVED ***
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(a) Housing development projects in the NV Districts may utilize any Housing Incentive Program or
Affordable Housing Incentive Program set forth in Sections 18.14.030 and 18.14.040.
18.29.100 Non-conforming Uses and Non-Complying Facilities
(a) Office Use.
(1) Any existing office use and facilities established prior to the effective date of this ordinance
may remain as legal and non-conforming use and/or non-complying facility.
(2) The legal and non-conforming office use shall be considered abandoned and may be
replaced only by a non-conforming use if it ceases and thereafter remains discontinued for
up to 24 consecutive months after the effective date of this ordinance.
(3) A non-conforming office use which is changed to or replaced by a conforming use shall not
be reestablished, and any portion of a site or any portion of a building, the use of which
changes from a legal non-conforming use to a conforming use, shall not thereafter be used
except to accommodate a conforming use.
(4) The legal and non-conforming office use and/or non-complying office facilities shall be
permitted to remodel, improve, or replace site improvements on the same site, for
continual use and occupancy by the same use, provided such remodeling, improvement, or
replacement complies with all of the following:
(A) Shall not result in increased floor area.
(B) Shall not relocate below grade floor area to above grade portions of the building.
(C) Shall not result in an increase of the height, length, building envelope, building footprint
or any other increase in the size of the improvement. For purposes of this section,
“building envelope” shall mean the three-dimensional shape and size occupied by an
existing building. It is not the maximum, buildable potential of the site.
(D) Shall not increase the degree of noncompliance.
(E) The Director may approve minor changes to the building’s footprint, height, length, and
the building envelope through Architectural Review of minor aesthetic architectural
improvements and to improve pedestrian-orientation provided there is no increase to
the degree of any non-complying feature.
(b) Any other uses or facilities rendered non-conforming or non-complying by this Chapter shall be
subject to Chapter 18.70, including the schedules for required termination of non-conforming uses
under Section 18.70.070.
18.29.110 Transportation Demand Management Plan
A transportation demand management plan shall be required for all new development projects or any
projects that meet the conditions listed in PAMC Section 18.52.030(i).
Item 9
Attachment A - Ordinance
adding Chapter 18.29 and
amending Chapters
18.14, 18.24, 18.70, and
16.65
Item 9: Staff Report Pg. 18 Packet Pg. 253 of 302
*** NOT YET APPROVED ***
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SECTION 3. Table 1 of Section 18.14.020 (Housing Element Opportunity Sites) of Chapter
18.14 (Housing Incentives) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as
follows (additions underlined):
Table 1
Housing Element Opportunity Site Development Standards
(Residential and Commercial Mixed Use Districts)
Base Zoning
District
Maximum Far(1) Minimum
Landscape
Coverage
Residential Density
(du/ac)(4)
Other
Development
Standards
Residential Total Minimum Maximum
CC(2) 1.5 2.0 (3) 20 See base
district
regulation
s: 18.16.0
60
See base district
regulations:
18.16.060 CC 1.25 1.25 (3) 20
CS (El Camino
Real)
1.25 1.25 (3) 20
CS (Other) 1.25 1.25 (3) 20 See HE
Appendix
D
CN (El Camino
Real)
1.25 1.25 30%(3) 20 See base
district
regulation
s: 18.16.0
60
CN (Other) 1.25 1.25 30%(3) 20 See HE
Appendix
D
CD-C 2.0 2.0 (2) (3) 20 See base
district
regulation
s: 18.18.0
60
See base district
regulations:
18.18.060
CD-N 1.5 1.5 (3) 20 See HE
Appendix
D
RP 1.25 1.25 (3) 25 None; 40
du/ac
anticipate
d
See base district
regulations:
18.20.040
RM-40 1.5 1.5 (3) 31 See base district
regulations: RM-30 1.25 1.25 (3) 20
Item 9
Attachment A - Ordinance
adding Chapter 18.29 and
amending Chapters
18.14, 18.24, 18.70, and
16.65
Item 9: Staff Report Pg. 19 Packet Pg. 254 of 302
*** NOT YET APPROVED ***
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RM-20 1.25 1.25 See 18.13.0
40
20 See HE
Appendix
D
18.13.040
NV-R3 See base district regulations: 18.29.060, except that maximum height shall be 50’,
maximum lot coverage shall be 70%, and minimum density shall be 25 du/ac.
Notes:
(1) Nothing in this table increases the non-residential floor area permitted in any district.
(2) FAR may be increased with transfer of development rights; see Chapter 18.18 for details.
(3) Landscape coverage may be provided above the ground-floor. If standard is not specified, refer to
base district regulations.
(4) Where no maximum density is provided in terms of du/ac, maximum density shall be determined
by estimating the realistic development capacity of the site based on the objective development
standards applicable to the project. Where noted, refer to Housing Element Appendix D: Sites Inventory
for specified densities.
SECTION 4. Section 18.24.010 (Purpose and Applicability) of Chapter 18.24 (Contextual
Design Criteria and Objective Design Standards) of Title 18 (Zoning) of the Palo Alto Municipal Code is
amended to read as follows (additions underlined, and unchanged text omitted by bracketed ellipses):
18.24.010 Purpose and Applicability
(a) Purpose
[. . .]
(b) Applicability of Regulations
These regulations apply to Housing Development Projects (as defined in Gov. Code 65589.5), both new
construction and renovations, within the following zones and combining districts:
(1) Chapter 18.12: R-1, for multiple-family uses only
(2) Chapter 18.13: RM-20, RM-30, RM-40
(23) Chapter 18.16: CN, CC, CC(2), CS
(34) Chapter 18.18: CD-C, CD-S, CD-N
(45) Chapter 18.20: MOR, ROLM, ROLM(E), RP, RP(5), GM
(56) Chapter 18.28: PF
(7) Chapter 18.29: NV-N3, NV-R4, NV-MXM, NV-MXH
(68) Chapter 18.34: PTOD combining district
Housing Development Projects include m Multifamily housing with three or more units ("multiple-family
use" as defined in Section 18.04.030), supportive and transitional housing, and residential mixed-use
projects with at least two-thirds residential square footage shall meet the objective design standards.
(c) Process and Alternative Compliance
Item 9
Attachment A - Ordinance
adding Chapter 18.29 and
amending Chapters
18.14, 18.24, 18.70, and
16.65
Item 9: Staff Report Pg. 20 Packet Pg. 255 of 302
*** NOT YET APPROVED ***
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[. . .]
SECTION 5. Section 18.70.040 (Nonconforming use – Discontinuance) of Chapter 18.70
(Nonconforming Uses and Noncomplying Facilities) of Title 18 (Zoning) is amended to read as follows
(additions underlined):
18.70.040 Nonconforming use - Discontinuance.
(a) On any site having facilities thereon valued at less than one thousand dollars, any nonconforming
use, other than a residential use, which is discontinued or abandoned or otherwise ceases
operation and use of the site for a period of six months or longer shall not be resumed,
reestablished, or continued, and all subsequent use of such site and facilities thereon shall
conform to this title.
(b) On any site not subject to subsection (a), a nonconforming use of facilities designed and
constructed for nonresidential purposes which is discontinued or abandoned or otherwise ceases
operation and use of the site for a period of one year or more shall not be resumed, and all
subsequent use of such site and facilities thereon shall conform to this title. Notwithstanding the
foregoing, a nonconforming use within the North Ventura Coordinated Area Plan boundaries may
be reestablished unless the use is discontinued or abandoned or otherwise ceases operation and
use of the site for a period of two years or more.
(c) Notwithstanding the provisions of Section 18.70.030, or the provisions of subsections (a) and (b)
of this section, in any residential district, a nonresidential, nonconforming use occupying facilities
originally designed and constructed for residential use which is discontinued or abandoned or
otherwise ceases operation and use of the site for a period of ninety days or greater shall not be
continued or recommenced, and any subsequent use of the site and facilities shall conform to this
title. This provision shall not be construed to prevent a change of ownership or management of
such nonconforming use; provided, that any cessation of operation of the use is solely in
connection with the transfer of ownership or management to a specifically designated person or
entity and is solely for the purpose of accomplishing any transfer of title, equipment, operational
control, or similar purpose.
(d) The timeframes provided in this Section apply only when a use is both nonconforming and
discontinued or abandoned or otherwise cease operation and use of the site.
SECTION 6. Section 16.65.030 (Basic affordable housing requirement - residential ownership projects)
of Chapter 16.65 (Citywide Affordable Housing Requirements) of Title 16 (Building Regulations) is
amended to read as follows (additions underlined, and unchanged text omitted by bracketed ellipses):
16.65.030 Basic affordable housing requirement - residential ownership projects.
The provisions of this section shall apply to all residential ownership projects, including the residential
ownership portion of any mixed use project containing three or more units, except for any residential
ownership project exempt under Section 16.65.025.
(a) Unless an alternative is approved as described in Section 16.65.080, residential ownership projects
shall provide the following:
(1) For projects on sites of less than five acres, fifteen percent of the dwelling units in the project shall
be made available at affordable sales price to very low, low, and moderate income households;
Item 9
Attachment A - Ordinance
adding Chapter 18.29 and
amending Chapters
18.14, 18.24, 18.70, and
16.65
Item 9: Staff Report Pg. 21 Packet Pg. 256 of 302
*** NOT YET APPROVED ***
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(2) For projects on sites of five acres or more and all townhome projects in the NV districts, twenty
percent of the dwelling units in the project shall be made available at affordable sales price to very low,
low, and moderate income households; and
(3) For projects that convert existing rental housing to condominiums, other residential ownership or
nonresidential space or that remove existing rental housing, twenty-five percent of the dwelling units in
the project shall be made available at affordable sales price to very low, low, and moderate income
households.
(4) Calculations of the number of affordable units required by this section shall be based on the number
of dwelling units in the residential project, excluding any density bonus units. Projects shall not receive a
credit for any existing dwelling units demolished as part of the project.
(b) The affordable units shall be made available at the following affordable sales prices:
[. . .]
SECTION 7. Section 16.65.040 (Basic requirement - mixed use, nonresidential and residential
rental projects) of Chapter 16.65 (Citywide Affordable Housing Requirements) of Title 16 (Building
Regulations) is amended to read as follows (additions underlined; deletions struck-through):
16.65.040 Basic requirement - mixed use, nonresidential and residential rental projects.
(a) Unless the mixed use, nonresidential or residential rental project is exempt under Section 16.65.025 or
an alternative is approved as described in Section 16.65.080, all mixed use, nonresidential and residential
rental projects shall pay housing impact fees as specified in Section 16.65.060 to mitigate the projects'
impacts on the need for affordable housing; except:
(1) that theThe residential ownership portion of a mixed use project containing three or more
units shall comply with Section 16.65.030.
(2) In the NV districts, residential rental projects, including mixed use projects containing
residential rental units, shall provide fifteen percent of the dwelling units in the project at rates
affordable to lower income households.
//
//
//
//
//
//
//
//
Item 9
Attachment A - Ordinance
adding Chapter 18.29 and
amending Chapters
18.14, 18.24, 18.70, and
16.65
Item 9: Staff Report Pg. 22 Packet Pg. 257 of 302
*** NOT YET APPROVED ***
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SECTION 8. Pipeline Projects. This Ordinance and the NVCAP shall not apply to any project
application deemed complete prior to the effective date of this Ordinance. Any project completed
pursuant to such application shall be deemed a legal non-conforming structure and/or use, subject to the
provisions of Palo Alto Municipal Code Chapter 18.70.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
____________________________ ____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
____________________________ ____________________________
Assistant City Attorney City Manager
____________________________
Director of Planning and
Development Services
Item 9
Attachment A - Ordinance
adding Chapter 18.29 and
amending Chapters
18.14, 18.24, 18.70, and
16.65
Item 9: Staff Report Pg. 23 Packet Pg. 258 of 302
5
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City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: City Auditor
Meeting Date: September 23, 2024
Report #:2408-3409
TITLE
Review the Procurement Process Review Audit and Supplemental Information Regarding
Competitive Solicitation Outcomes and Approve the Audit
RECOMMENDATION
The City Auditor’s Office recommends City Council approve the Procurement Process Review
Audit
EXECUTIVE SUMMARY
The Procurement Process Review Audit was presented to the Policy & Services Committee on
August 13, 2024. Committee members raised certain questions about the scope of the audit
work performed. The Committee did not unanimously approve the audit necessitating
presentation of the audit to the full City Council. Both the City Auditor’s Office and the
Administrative Services Department reviewed prior analysis performed and data from the audit
period to provide additional information for Council members to consider which is provided in
the Background and Analysis sections of this staff report.
BACKGROUND
Work for the Procurement Process Review Audit was approved by City Council as part of the
FY23 Annual Audit Plan. The audit was completed and a first draft sent to the department in
December of 2023. Due to changes in the Administrative Services Department (ASD) and CIty
Auditor’ Office Management at the beginning of 2024, the audit report and management
response were not finalized and presented to the Policy & Services Committee until August 13,
2024. Policy and Services Committee members raised certain questions about the results of the
audit and the scope of work that was completed. The City Auditor has followed up on the
Committee’s request for additional information and provides answers to these questions in the
Analysis section of this staff report for City Council consideration.
Item 10
Item 10 Staff Report
Item 10: Staff Report Pg. 1 Packet Pg. 259 of 302
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Additionally, the City Auditor would like to note the general process for City Council to direct
the Audit Office’s work each year. The Auditor suggests following this process if there is interest
in requesting further work related to the procurement function. Each year, the Auditor’s Office
conducts a risk assessment to identify topics and areas of concern for potential inclusion on the
annual audit plan. The Auditor’s Office is currently conducting risk assessment interviews with
Council Members and the Executive Leadership Team. The information gathered in these
interviews will culminate in a draft FY25 Audit Plan. The FY25 Audit Plan will be presented to
City Council in November 2024 for approval. The Auditor’s Office encourages participation in
the risk assessment process as it provides a systematic and consistent approach to identifying
risks and elevating those risks for City Council consideration in directing the Audit Office’s work
for the following fiscal year.
ANALYSIS
The Procurement Process Review audit stated objectives were to:
1) Determine whether the needs assessment, budgeting, solicitation, and vendor selection
processes are efficient, effective, and transparent to ensure value for money and fair
competition.
2) Determine whether the procurement process is valid through proper approvals, adequate
segregation of duties, and compliance with applicable laws, regulations, and the City's policies.
3) Determine whether technology is used appropriately and effectively to enhance integrity,
efficiency, transparency of the procurement process and ensure consistency and validity of the
relevant information and data.
4) Identify the opportunities to improve the efficiency and effectiveness in the procurement
process.
The audit objectives, particularly 1 and 4, were stated in broad terms that could apply to many
aspects of the procurement system. As a full review of the entire procurement system and its
overall performance would far exceed the time and budget allotted for this audit engagement,
the audit team scoped and focused their assessment on the City’s procurement process design
of internal controls, including procurement policies, procedures and processes. These internal
controls were assessed for their alignment with best practices associated with the
efficient, effective, and transparent procurement of goods and services in order for the City to
provide value for money and facilitate fair competition. While the audit did not assess the
overall outcomes of the procurement process, it did test a sample of contracts for compliance
with established City procurement practices.
A sample of fifty contracts from FY22 and FY23 were tested on the following criteria to
determine if:
1. Contracts were appropriate, current, and accurately reflected terms and conditions and
whether these conditions aligned with expectations identified within the corresponding
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chapter of the City’s Purchasing Manual for each type of solicitation and with the City’s
Municipal Code.
2. Procurement documents including contracts, purchase orders, invoices and approval
documents were properly maintained and accessible including the presence of internal
documents, Appendix G and Appendix E, and if they were completed in accordance with
the City’s Purchasing Manual and Municipal Code.
3. Initiation process for purchasing requests at the department level follow the City’s
signature authority in accordance with the City’s Contract Solicitation and Award Limits
Summary and approvals were obtained at the department level, purchasing
department, and legal department as necessary.
4. Appropriate segregation of duties existed during the procurement process as the
preparer, reviewer, and approvers were independent of each other and supporting
evidence and documentation were present.
5. The competitive bidding process followed the City’s Municipal Code as required and the
selection criteria was fair and transparent.
6. The vendor selection, evaluation and approval process were reasonable per review of
supporting documentation.
The audit reported four findings based on testing the 50 contracts on the above criteria. A brief
summary of these findings follows:
•Finding 1 noted that while most (44) of the contracts reviewed had the appropriate
documentation supporting that policies and procedures were followed and internal
controls operating as intended, a few contracts were missing key documentation:
o 4 contracts did not include Appendix G, Solicitation Plan Checklist but should
have included this documentation.
o 2 contracts did not include Appendix E, Exemption from Competitive Solicitation
but should have included this documentation.
•Finding 2 noted that the City’s purchasing manual required updates and was missing
procedures to execute a “Design Build” contract. However, the City does have policies
and procedures in place for different types of contracts and solicitations and the audit
evaluated the efficiency, effectiveness, and transparency of the procurement process
for these various types of contracts and did not note any additional areas for
improvement.
•Finding 3 noted that needs assessments and market analyses are completed by
individual departments and these processes are not formalized in the purchasing
manual which may lead to inconsistent practices.
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•Finding 4 noted that the technological systems used to support the procurement
process allow for the ability to create duplicate vendors in the system. While the City
has controls related to who can create vendors in the system, there are several risks
associated with this practice including the potential for making duplicate payments and
generating fraudulent invoices. The audit did not complete any additional testing to
determine if errors in billing had been made as a result of the duplicate vendors.
Policy & Services Committee Members specifically asked about testing related to competitive
bidding procedures. The audit did evaluate documentation for each contract to confirm
whether competitive bidding practices were followed (see Finding 1 and criteria number 5
above). In response to Committee Members questions, the City Auditor completed a second
assessment of 11 of the 50 contracts sampled and noted the following characteristics:
•3 of the 11 contracts were exempted from the competitive bidding process as they were
the sole vendor operating in that space in CA at the time of the solicitation
•6 of the 11 contracts received multiple bids
o 3 selected the lowest bidder
o 3 selected the Best Value (2 of these 3 had external panelists serving on the bid
review panel in addition to the Palo Alto employees)
•2 of the contracts failed testing due to not having the appropriate documentation to
support the exemption (see Finding 1, above)
In response to questions asked at the August 13th Policy & Services Committee meeting,
Administrative Services Department (ASD) staff provided the following summary of contract
solicitations between July 2023 and July 2024. Please note this information has not been
verified by the City Auditor but serves as part of the Management Response.
•105 formal solicitations
•3 solicitations (3% of the total) received no bid
•27 solicitations (26% of the total) received only 1 bid
ASD staff summarized vendor feedback on solicitations that received 1 or no bids. The primary
themes of this feedback were:
•Vendors were not available to take on the City project (not enough bandwidth)
•Vendors did not have the requested products and/or expertise
Some vendors did not respond to the City’s request for feedback and a few cited forms and/or
the e-procurement system as reason for not submitting a bid.
FISCAL/RESOURCE IMPACT
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Work conducted for this audit and in responding to subsequent requests for information is
within the approved scope and compensation of the contract with Baker Tilly.
STAKEHOLDER ENGAGEMENT
The City Auditor’s Office met with relevant City leadership and staff and City to gather
information and conduct work for this audit activity.
ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by CEQA because the audit activities do
not involve any commitment to any specific project which may result in a potentially significant
physical impact on the environment. CEQA Guidelines section 15378(b)(4).
ATTACHMENTS
Attachment A: Procurement Process Review Audit
APPROVED BY:
Kate Murdock, City Auditor
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June 6, 2024
City of Palo Alto
Office of City Auditor
Procurement Process Audit
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Contents
Baker Tilly US, LLP, trading as Baker Tilly, is an independent member of Baker Tilly International. Baker Tilly International Limited is an English company. Baker
Tilly International provides no professional services to clients. Each member firm is a separate and independent legal entity, and each describes itself as such.
Baker Tilly US, LLP is not Baker Tilly International’s agent and does not have the authority to bind Baker Tilly International or act on Baker Tilly International’s
behalf. None of Baker Tilly International, Baker Tilly US, LLP nor any of the other member firms of Baker Tilly International has any liability for each other’s acts
or omissions. The name Baker Tilly and its associated logo is used under license from Baker Tilly International Limited.
EXECUTIVE SUMMARY...................................................................................................1
INTRODUCTION...............................................................................................................5
DETAILED ANALYSIS.....................................................................................................8
AUDIT RESULTS............................................................................................................13
APPENDIX......................................................................................................................22
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Executive Summary
Purpose of the Audit
Baker Tilly US, LLP (Baker Tilly), in its capacity serving as the Office of the City Auditor (OCA) for the
City of Palo Alto (the City), conducted a Procurement Process Audit based on the approved Task
Order 4.20. The objectives of this audit were to:
1) Determine whether the needs assessment, budgeting, solicitation, and vendor selection
processes are efficient, effective, and transparent to ensure value for money and fair competition.
2) Determine whether the procurement process is valid through proper approvals, adequate
segregation of duties, and compliance with applicable laws, regulations, and the City's policies.
3) Determine whether technology is used appropriately and effectively to enhance integrity,
efficiency, transparency of the procurement process and ensure consistency and validity of the
relevant information and data.
4) Identify the opportunities to improve the efficiency and effectiveness in the procurement process.
Report Highlights
Finding 1: Supporting documentation for contract award
(Page 13)During the procurement process audit, the OCA requested a comprehensive list of
contract awards spanning from fiscal year (FY) 2021 to FY2023, inclusive of
solicitations. A sample of 50 contracts was selected for testing key controls, as
identified during walkthroughs with the Purchasing Division.
Out of these 50 samples, 6 contracts exhibited exceptions. These exceptions were
primarily due to the absence of supporting documentation, which resulted in
compliance deficiencies, as mandated by the City’s Purchasing Manual and Chapter
2.30 of the Palo Alto Municipal Code.
•4 contracts did not include the Solicitation Plan Checklist or Appendix G
•2 contracts did not include the Exemption From Competitive Solicitation
Request Form or Appendix E
The expectation was that all the samples had the necessary supporting documents
that were outlined in the City’s Purchasing Manual and/or the City of Palo Alto
Municipal Code (Section 2.30 - Contracting and Purchasing Procedures). Risks
associated with lack of support include failure to meet contract specifications, loss of
data, fraudulent activity, and noncompliance with laws, regulations, and provisions.
Key Recommendations
It is recommended that the City establish and incorporate a formal checklist that
includes all supporting evidence that is to be retained during the entire procurement
phase. The checklist should include the various documents that are mandatory for
each contract, as well as all internal documentation that is referenced in the
purchasing manual and municipal code. This checklist is supplemental to the
Solicitation Plan Checklist and Exemption From Competitive Solicitation Request
Form. A checklist that identifies necessary documents for retention would help
mitigate the risk of noncompliance.
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Finding 2:Purchasing manual
(Page 15)The City of Palo Alto engages in various contracts for goods and services, with distinct
procurement procedures for each type. The OCA conducted walkthroughs to evaluate
the procurement process’s efficiency, effectiveness, and transparency. It was
observed that the process for procuring a “Design Build” contract, although employed
by the City, is not documented in the City’s Purchasing Manual. This highlights the
need for comprehensive documentation to ensure transparency and adherence to
established procedures in all aspects of the City’s procurement process.
Furthermore, it was determined when analyzing the City’s Purchasing Manual that
inconsistencies exist. It was noted that there was no table of contents, multiple
chapters were outdated, a chapter was inconsistently labeled, chapter revisions were
completed with existing versions of the chapters representing several different years,
and appendices were missing.
The Purchasing Division management has informed the OCA that the City is currently
in the process of updating their Purchasing Manual with a finalized version expected
to be completed in FY2024. The “Design Build” contract type is expected to have a
designated chapter in the updated version as well.
Key Recommendations
The City should complete adding in the City’s Purchasing Manual a chapter that
explains the necessary steps for processing a “Design Build” contract.
It is crucial that the City takes steps to document the process for procuring a “Design
Build” contract. This could involve detailing each step of the process, from the initial
solicitation to the final contract award. It would also be beneficial to include examples
of best practices and potential pitfalls to avoid. By doing so, the City can ensure that
its procurement process is robust, transparent, and in line with established
procedures. This will ultimately contribute to more effective and efficient procurement
operations within the City of Palo Alto.
It is also advisable that the City’s management regularly update the Purchasing
Manual to ensure that the procurement process remains in alignment with the City’s
evolving goals and needs. The Purchasing Manual should include a table of contents,
frequently revised chapters, appropriate chapter titles, and all appendices. It is
imperative that the City’s Purchasing manual is relative to the current operations that
are being conducted at the City.
Finding 3:Needs assessment and market analysis
(Page 16)Based on the results of needs assessment and market analysis, an organization
develops the specifications, requirements, a statement of work, and award criteria to
properly describe the organization’s needs in the solicitation document and attract a
sufficient number of qualified bidders
The OCA noted the following:
•The City currently lacks a formalized needs assessment process within its
Purchasing Manual.
•The City departments perform their own needs assessments and market
analyses before submitting budget requests.
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•The Purchasing Division does not collect or review the needs assessments
and market analyses conducted by the City departments.
As described in the Best Practices section of this report, it is important that an
organization assesses needs and analyzes the market for thinking strategically and
encouraging competition. Without them, the City may be exposed to some risks such
as procurement of insufficient or inferior goods and services.
Key Recommendations
The City should incorporate a formal needs assessments and market analyses in the
City’s Purchasing Manual to provide expectations and guidance to all departments to
enable the procurement professionals to gather and analyze the information. The
procedures performed should also include detailed review by the appropriate
Purchasing Division personnel to ensure the results are utilized to encourage bid
competition, meet strategic goals, comply with laws and regulations, and to leverage a
buying power.
Finding 4:Vendor record creation
(Page 18)The OCA examined whether technology is used appropriately and effectively to
enhance integrity, efficiency, transparency of the procurement process and ensure
consistency and validity of the relevant information and data. It was observed during
inquiry and assessment of vendor listings that duplicate vendors can be created in
SAP. Being allowed to create vendors or duplicate vendors can lead to many risks.
Risks include making duplicate payments to the same vendor which may impact the
City's financial position, fraudulent invoices can be paid to nonexistent vendors,
noncompliance with laws, regulations and provisions, and data quality that is not
accurate or complete.
The OCA noted that vendors are created by authorized personnel within the
Accounting and Purchasing Divisions, the only Divisions that employ personnel that
have the authority, have the ability to create a new vendor. Although duplicate
vendors can be created without restrictions from the SAP system, mitigating controls
exist to help decrease the likelihood of duplicating vendor submissions.
Key Recommendations
The City should implement application controls that help the City avoid creating
duplicate vendor records unintentionally. Additionally, the City should implement a
manual control where the creation and modification of new vendors are subject to
appropriate independent reviews at the time of creation and modification to prevent
duplicate or unauthorized entries and errors.
The City should also frequently validate and monitor vendor lists, and prioritize a
structured approach to vendor management with regular reviews following City-
developed procedures. This includes removing duplicate vendors that are in SAP
currently, as well as old vendors that are no longer in-use.
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Introduction
1 Palo Alto Municipal Code Section 2.30.010 https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0-0-0-61798#JD_2.30.010
Objective The objectives of this audit were to:
1) Determine whether needs assessment, budgeting, solicitation, and vendor
selection processes are efficient, effective, and transparent to ensure value
for money and fair competition.
2) Determine whether the procurement process is valid through proper
approvals, adequate segregation of duties, and compliance with applicable
laws, regulations, and the City's policies.
3) Determine whether technology is used appropriately and effectively to
enhance integrity, efficiency, transparency of the procurement process and
ensure consistency and validity of the relevant information and data.
4) Identify the opportunities to improve the efficiency and effectiveness in the
procurement process.
Background The Purchasing & Contract Administration (Purchasing) Division in the City of
Palo Alto manages procurement processes and oversees contractual
agreements. Its responsibilities include soliciting bids, purchasing goods and
services, negotiating contracts, ensuring compliance with regulations, and
managing vendor relationships. City departments play a primary role in contract
administration once a contract is established, however, the Purchasing Division
becomes involved if a contract needs to be modified. The division also provides
support with other City departments to develop and execute contracts for these
purchases. The department aims to acquire quality goods/services at competitive
prices while maintaining transparency, efficiency, and adherence to City policies
and procedures.
The Purchasing division operates in accordance with City of Palo Alto Municipal
Code (Section 2.30 - Contracting and Purchasing Procedures) which establishes
the contracting authority of the City Manager, the Chief Procurement Officer,
designated employees, City Attorney, and City Council. The purpose of the
Municipal Code for the Purchasing Division is “to foster and encourage the use
of best management practices in contracting and purchasing; to ensure quality
and efficiency in the procurement of goods, services, equipment, materials and
supplies at the lowest cost commensurate with the quality needed; to provide for
a fair and equitable procurement process utilizing standardized solicitation
procedures; and to maintain honesty and integrity in the procurement process”1.
The Administrative Services Department goals and key performance measures
in the FY2024 Adopted Operating Budget include the following purchasing-
related goal and key performance measure:
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INTRODUCTION
The Purchasing division employees include a Chief Procurement Officer, 4
contract administrators, 2 senior buyers, and 2 buyers. All procurement activity is
handled by 9 City employees plus staff in departments that initiate procurements
and manage contracts. The list of contracts provided by Purchasing division
shows that 2,201 contracts were active during the audit period, July 1, 2020, to
June 30, 2023. The 2,201 contracts amounted to $399,412,385.95 in total
contract value.
The current City’s Purchasing Manual is dated May 20, 2019, and consists of 22
chapters and Appendices A, B, G, and O. The City is currently in the process of
updating their Purchasing Manual with a finalized version expected to be
completed in FY2024.
Scope The OCA evaluated the controls surrounding the City’s procurement process and
tested the selected controls by assessing a sample of contracts between July 1,
2020, to June 30, 2023 (audit period).
Methodology To achieve the audit objectives, the OCA performed the following procedures:
•Assessed the pertinent laws, policies, and guidelines related to Procurement
including the City’s Purchasing Manual and City of Palo Alto Municipal Code
(Section 2.30 - Contracting and Purchasing Procedures).
•Interviewed the appropriate individuals to understand the roles and
responsibilities, processes, and controls related to Procurement activities.
•Selected a sample of contracts during the audit period, FY21 to FY23. The
OCA stratified the population into smaller groupings by contract type
(Appendix A). The percentages of counts for each contract type were
multiplied by the sample size of 50 to select a representative number of
contracts for each contract type for testing. The sample selected ultimately
accounted for $244,409,100.22, or 61% of total contract value.
•Assessed supporting documents for controls performed and approvals for the
selected contracts and solicitations.
•Used State and Local Government Procurement” A Practical Guide by
National Association of State Procurement Officials (NASPO), California
Public Contract Code (PCC), and Auditing Procurement in the Public Sector
by the Institute of Internal Auditors (IIA) as best practices.
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INTRODUCTION
2 Government auditing standards require an external peer review at least once every three (3) years. The last peer review of the Palo Alto
Office of the City Auditor was conducted in 2017. The Palo Alto City Council approved a contract from October 2020 through June 2022
with Baker Tilly US, LLP (Baker Tilly) and appointed Kyle O’Rourke, Senior Consulting Manager in Baker Tilly's Public Sector practice, as
City Auditor. Given the transition in the City Audit office, a peer review was not conducted in 2020 and will be conducted after the third year
of Baker Tilly’s contract.
Compliance
Statement
This audit activity was conducted from August 2023 to December 2023 in
accordance with generally accepted government auditing standards, except for
the requirement of an external peer review2. Those standards require that we
plan and perform the audit to obtain sufficient, appropriate evidence to provide a
reasonable basis for our findings, observations, and conclusions based on our
audit objectives. We believe that the evidence obtained provides a reasonable
basis for our findings, observations, and conclusions based on our audit
objectives.
Organizational
Strengths
During this audit activity, we noted the expertise and the responsiveness
demonstrated by the Procurement team, notably the Chief Procurement Officer
and Assistant Director. We also observed their willingness to provide and receive
feedback regarding the procurement process flowcharts, which includes their
receptiveness to process improvements.
The Office of the City Auditor greatly appreciates the support of the Purchasing &
Contract Administrative Division of the Administrative Services Department in
conducting this audit activity.
Thank you!
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Detailed Analysis
3 https://www.naspo.org/
4 https://county.milwaukee.gov/files/county/administrative-services/Procurement/PagesfromNASPOStateandLocalProcurementGuideCh1-
10.pdf
5 https://cdn.naspo.org/R&I%20Content%20Library/CriticalSucessAreas_KeyPerformances_2023.pdf
Best Practices The National Association of State Procurement Officials (NASPO) offers guidance
related to procurement in the public sector. The best practices highlighted by
NASPO, within the publication of the State & Local Government Procurement: A
Practical Guide, provides relative recommendations for the Purchasing Division
and the overall procurement process. Additional key recommendations have been
provided by the California Public Contract Code (PCC) and the Institute of Internal
Auditors (IIA). The IIA offers audit guidance through its publication titled Auditing
Procurement in the Public Sector, delineating a conceptual framework within the
International Professional Practices Framework (IPPF) for procurement practices
specific to the public sector.
National Association of State Procurement Officials (NASPO)3
The NASPO publication of the State & Local Government Procurement: A
Practical Guide4 provides guidance for procurement in the public sector. This
practical guide includes a comprehensive list of recommended best practices. Key
recommendations that would positively impact the City, and are directly from the
publication, are highlighted here:
•Governance
o “The central procurement office and the Chief Procurement Officer
should establish measurements for assessing the performance of
the procurement process, such as processing times, supplier
performance data, and client survey responses.”
o The Critical Success Area and Key Performance Indicators for
State Central Procurement Offices5 by NASPO provides a list of
indicators such as “Dollar value of the negotiated hard savings or
cost avoidance realized due to the efforts of procurement staff” and
“Average internal customer satisfaction score from monthly or
annual customer satisfaction surveys.”
•Strategies and Planning
o “Public procurement officers must be encouraged to think
strategically about each procurement and ensure that they have the
right tools and data to make strategic decisions.”
•Competition
o “Public procurement officers must have at hand a wide range of
source selection methods in order to be able to meet user agencies'
and users' needs.”
o “Understand market conditions for every procurement.”
o “Performing market research to understand the scope of the
marketplace.”
o “Estimating prices and costs based on thorough market price and
cost research.”
o “If prequalification of suppliers is used, prequalifying as many
suppliers as exist in the current market; and if there are too few
suppliers, broadening the geographic area of qualification.”
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6
https://leginfo.legislature.ca.gov/faces/codesTOCSelected.xhtml?tocCode=PCC&tocTitle=+Public+Contract+Co
de+-+PCC
7 https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PCC§ionNum=10302.
8 https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=10303.&nodeTreePath=3.2.3.3&lawCode=PCC
9 https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PCC§ionNum=6106.
o “The procurement office should budget for supporting staff access
to current market information, such as subscriptions to online
market research tools and attendance at trade shows.”
o “The objective of a sound specifications-drafting process is to find a
balance between what the user believes that it needs and a fair
expression of those needs that is not too restrictive for the
marketplace.”
o “The standard for contract award under competitive sealed bidding
should not merely be lowest price but also lowest cost to the state
or local government.”
•Contractor Performance
o “Assess contract performance both during and at the end of the
contract”
o “Policies should be in place up front to insulate performance
evaluations and contract disagreements from undue political
influence. The contract should clearly identify milestones,
expectations for service levels, output measures, and standards.”
o Monitoring performance is an iterative process. Periodic reviews for
high-value procurements foster collaboration, addressing
challenges and identifying cost-saving opportunities.
o Optimize with frequent technology-driven monitoring using diverse
feedback sources, including contractors, citizens, consultants, and
community groups.
o Collect meaningful performance data, share it with stakeholders,
and leverage information technology for efficient data collection and
evaluation.
o Finally, take advantage of less adversarial approaches to resolving
disputes and handling performance issues, like mediation or
arbitration.
California Public Contract Code (PCC)6
The PCC regulates the procurement process for public contracts in the state,
setting forth guidelines, procedures, and requirements to govern the bidding,
awarding, and execution of contracts for goods, services, and public works
projects by state and local government entities. For consideration the California
PCC includes the following elements:
•Every solicitation shall contain the statement “It is unlawful for any person
engaged in business within this state to sell or use any article or product as
a “loss leader.7””
•The department shall adopt, publish and apply uniform standards of rating
bidders.8
•Any state agency or department, which is subject to this code, shall follow
this section in negotiating fees and executing a contract for professional
consulting services.9
•Payments upon contracts shall be made as the department prescribes
upon estimates made and approved by the department, but progress
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10 https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PCC§ionNum=10261.
11 The Institute of the Internal Auditors, Auditing Procurement in the Public Sector, Practice Guide, (November 2021)
payments shall not be made in excess of 100 percent of the percentage of
actual work completed.10
Auditing Procurement in the Public Sector - Assess Needs and Analyze
Market11
Assessing procurement typically begins by reviewing the organization's pre-tender
planning policies and procedures. Effective risk mitigation in procurement hinges
on well-designed strategies and proactive policies. Continuous monitoring and
thorough follow-up assessments are essential to gauge the practical performance
of these policies and procedures. Typically, this is performed by a procurement
specialist who is separate from the manager who authorizes the procurement and
performs the following:
•Assesses organizational need for goods or service.
•Assess the market for the requested good or service.
•Identify possible alternatives to external procurement.
•Identify gaps that may be filled by external procurement.
•Justify needs in terms of economy, effectiveness, and efficiency.
Auditing Procurement in the Public Sector - Plan and Budget⁹
During the pre-tendering phase, accurately estimating resources and devising a
comprehensive budgeted plan is fundamental. Establishing precise selection
criteria and budgeting guidelines is pivotal for successful procurement.
Procurement managers bear the responsibility of minimizing the risk associated
with budget inaccuracies, particularly when dealing with new acquisitions or
intricate projects where complexities may arise. To ensure proper planning and
budget the following should be performed:
•Forecast cost in each phase of procurement.
•Prepare a project specific procurement plan (i.e. business case or
feasibility study).
•Procurement plan approval through senior hierarchy.
•Separating budget estimation duties from authorizations and approvals and
establishing peer reviews.
Auditing Procurement in the Public Sector - Post Award⁹
To maximize the effectiveness of post-award contract administration, it is pivotal to
clearly define the roles and responsibilities of contract managers and
administrators, detailing their involvement in performance oversight, change
management, document upkeep, dispute resolution, and contract finalization.
Implementing robust monitoring systems with specific Key Performance Indicators
(KPIs), fostering proactive adaptation to changes, maintaining centralized and
accessible document repositories, establishing structured dispute resolution
protocols, and outlining systematic contract closure processes are vital steps
towards enhancing efficiency and ensuring compliance. Embracing these strategic
measures will fortify the organization's ability to navigate post-award contract
administration seamlessly. Implementation of the above and following can foster
more favorable and successful contract outcomes:
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•Developing a contract administration plan containing operational details of
the contract to monitor contract performance.
•Segregating duties of individuals who are responsible for receiving, paying
or providing program expertise.
•Allocating funds upon contract award and ensuring payments are issued
promptly.
Auditing Procurement in the Public Sector - The Organization for Economic
Co-operation and Development (OECD) Issued Guidance⁹
The OECD serves as a forum for governments worldwide to collaborate on
economic policies and address global challenges. The OECD aims to promote
economic growth, prosperity, and sustainable development through research,
policy analysis, and the exchange of best practices. The OECD contains the
following recommendations:
•Developing performance measurement systems with KPIs focused on the
outcomes of procurement processes.
•Using the performance data to inform strategic policy-making and to
develop strategic plans that articulate expectations and responsibilities.
•Ensuring the e-procurement system should is flexible, secure, and
scalable, while the user interface should be simple yet effective. Strong
access controls are crucial for data security and user privacy.
The following flowchart shows the abbreviated current processes and controls in
place.
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Abbreviated Procurement Process
Department Level
Purchasing Division
Vendor
Create a purchase
requisition (PR) in
SAP
Add procurement
documents to SharePoint
Review
documents for completeness
Consult with
department to
align on
solicitation
timeline
Create draft
version of solicitation
Consult with
project manager
and CAO to
finalize
solicitation
package
Solicit and
advertise
request on
opengov
Review bids/
quotes Verify
Licenses and
other
requirements
Review and sign a
contract
End
Routed for
signaturesbased on the
amount and length of contract
Release
documents to
procurement
Provide recommended
vendors to Project Manager (PM)
Issue intent to
award. 5-day protest period begins.Issue Purchase
Order (PO) to
vendor
Email PM to attach PO to staff
report
•No requirement to provide supporting documents for needs
assessment or market analyses
•Required documents e.g., Appendix G & E, could be missing
Risks of creating duplicate
vendor records
•No formal process for vendor
performance monitoring
•No contract close out process
Develop and
maintain
Purchasing
Manual
PM selects vendor
•Missing sections
•In the process of being
updated
Perform the
contract
requirements
Monitor vendor performance
Create a new
vendor record,
if necessary
Council authorization
required?
No
Yes
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Finding 1:
Supporting
documentation
for contract
award
During the audit of the procurement process, the OCA requested a
comprehensive list of contract awards spanning from FY2021 to FY2023,
inclusive of solicitations. A sample of 50 contracts was selected for testing
key controls, as identified during walkthroughs with the Purchasing Division.
Out of these 50 samples, 6 contracts exhibited exceptions. These exceptions
were primarily due to the absence of supporting documentation, which
resulted in compliance deficiencies, as mandated by the City’s Purchasing
Manual and Chapter 2.30 of the Palo Alto Municipal Code.
•Four out of 50 contracts did not include the Solicitation Plan Checklist or
Appendix G.
▪1 out of 4 contracts that did not include the corresponding Solicitation
Plan Checklist were purchased goods. Chapter 6 (page 5), of the
City’s Purchasing Manual - contracts for $10,001-$50,000 (Informal
Solicitation) - states: “If desired, Purchasing can conduct the informal
solicitation for the department. In these instances, departments must
complete the “Solicitation Plan Checklist” of Appendix G, assemble a
list of recommended sources with contact information, and provide a
detailed specification, all saved to a designated location for
Purchasing to process. This documentation must be referenced in
the purchase requisition’s “Header Note” screen as “Supporting
documentation completed in the [location].” Chapter 6 (page 6), of
the City’s Purchasing Manual, for $50,001 and above (Formal
Solicitation), states “When utilizing a formal bid process for
purchases of goods above $50,000, City departments must create a
fully funded purchase requisition (PR). Before releasing the PR for
processing, a “bid ready” specification must be saved in MS Word
format, along with a completed “Solicitation Plan Checklist” -
Appendix G, to a designated location for Purchasing to process. This
documentation must be referenced in the purchase requisition’s
“Header Note” screen as “Supporting documentation completed in
the [location].”
▪2 out of the 4 contracts that did not include the corresponding
Solicitation Plan Checklist was a contract that was purchased
professional services (informal proposal). Chapter 8 (page 5), of the
City’s Purchasing Manual, contracts for $50,001-$85,000 (Informal
Proposal), states “Departments (Project Managers) must complete a
Solicitation Plan Checklist - Appendix G, saved to a designated
location for the department, or Purchasing, to process the contract.
The checklist provides a road-map of direction for the requesting
department and critical information needed by Purchasing & Contract
Administration to process a procurement request. This
documentation must be referenced in the supporting PR ‘Header
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Note’ screen as “Supporting completed in the [LOCATION]” to advise
Purchasing on where to obtain supporting electronic documentation.”
▪1 out of the 4 contracts did not include the corresponding Solicitation
Plan Checklist was a contract that was purchased professional
services (formal proposal). Chapter 8 (page 8), of the City’s
Purchasing Manual, contracts for $85,001 and above (Formal
Proposal), states “Departments (Project Managers) must complete a
“Solicitation Plan Checklist” - Appendix G, saved to a designated
location for the department, or Purchasing, to process the contract.
The checklist provides a road-map of direction for the requesting
department and critical information needed by Purchasing & Contract
Administration to process a procurement request. This
documentation must be referenced in the supporting PR ‘Header
Note’ screen as “Supporting completed in the [LOCATION]” to advise
Purchasing on where to obtain supporting electronic documentation.”
•Two out of 50 contracts did not include the Exemption From Competitive
Solicitation Request Form or Appendix E.
▪2 contracts tested, that were labeled as ‘exemptions’, did not include
the Exemption From Competitive Solicitation Request Form or
Appendix E. Per Chapter 4 (page 1), of the City’s Purchasing
Manual, “When a City department requires a specific products or
services over $10,000 that can only be furnished by a certain
provider or that should be otherwise exempted from the competitive
solicitation process (ref. PAMC 2.30.360), the requestor must
complete an Exemption From Competitive Solicitation Request Form
(Purchasing Manual Appendix E) via email. The exemption request
requires a description of the unique need that necessitates an
exemption from competitive solicitation, including actions taken to
determine justification of why it may be impracticable, unavailing or
impossible to solicit bids or proposals. For product standardization
requests, the justification must demonstrate that standardization is
necessary for the health, safety or welfare of the City or significant
cost savings can be realized by standardizing on a single brand or
trade name. These requests require Department Head, Purchasing
Manager and City Manager approval. To be approved, the
justification request must demonstrate a need that can only be
satisfied by the selected supplier.”
Risks associated with lack of support include failure to meet contract
specifications, loss of data, fraudulent activity, and noncompliance with laws,
regulations, and provisions.
Recommendation It is advisable for the City to establish and integrate a comprehensive
checklist that encompasses all supporting evidence required to be retained
throughout the entire procurement phase.
This checklist should include all mandatory documents for each contract, as
well as all internal documentation referenced in the purchasing manual and
municipal code. It should also provide space for commentary, enabling the
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purchasing manager to offer detailed explanations in cases where certain
supporting evidence may not be applicable.
This proposed checklist would serve as a supplement to the existing
Solicitation Plan Checklist and Exemption From Competitive Solicitation
Request Form. Its implementation would enhance the transparency and
efficiency of the procurement process, ensuring that all necessary
documentation is consistently maintained and easily accessible. This, in turn,
would contribute to the overall effectiveness of the City’s procurement
operations. Lastly, a checklist that identifies necessary documents for
retention would help mitigate the risk of noncompliance.
Management
Response
Responsible Department(s): Administrative Services Department
Concurrence: Agree
Target Date: December 2024
Action Plan:
Staff agrees with the recommendation and to that end the Purchasing
Division is currently implementing the intake process in the new procurement
system provided by OpenGov. The OpenGov intake process will replace and
automate Appendix G, the current checklist, and will be inclusive of all
documents needed for the formal solicitation purposes. The new OpenGov
intake process is designed to offer efficiencies through a streamlined
interface and a single destination for communication replacing numerous
emails and documents.
Staff is also finalizing new checklists that will cover the informal request for
solicitations process as well for cooperative agreements. With the new
OpenGov intake process and the new checklists, this will complete the
checklist documentation needed to start any solicitation. Check lists already
exist for professional service agreements, amendments to contracts, and
general services agreements. With these tools, it will be clearly laid out what
documents will be needed to complete a solicitation.
Summary:
Existing checklists: Appendix G (for most solicitations); professional services
agreement; amendment to contract; general services.
New checklists to be changed/added: Appendix G to be integrated into
OpenGov; new checklist for informal request for proposals.
Finding 2:
Purchasing
manual
The City of Palo Alto procures a variety of contracts for goods and services.
The procurement process employed by the City varies, with distinct
procedures in place depending on the type of contract and solicitation.
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These types include the purchase of goods, general services, professional
services, and public works contracts, among others. (Appendix A)
The OCA undertook a series of walkthroughs to assess the efficiency,
effectiveness, and transparency of the procurement process. These
walkthroughs served to document the current state of the procurement
process. The documented process was subsequently compared to the
procedures outlined in the City’s Purchasing.
During the walkthroughs, it was observed that the City employs a specific
process when procuring a “Design Build” contract. This process, however, is
not documented within the City’s Purchasing Manual. As there was a
Design Build contract with a contract value of $4.2 M in the list of contracts
for the audit period, the OCA added this contract to our previously selected
50 contracts for testing.
It was noted that, at present, the procedure for processing a Design Build
contract is executed through a blend of various solicitation processes,
leading to possible inconsistencies. To address this, it is imperative to
document this process and ensure its inclusion in the updated manual. This
will foster consistency and efficiency in the City’s procurement operations as
the procedures delineated in the purchasing manual will serve as a guide for
City employees, enabling them to effectively evaluate and execute tasks
when procuring a specific solicitation.
Furthermore, it was determined when assessing the City’s Purchasing
Manual that inconsistencies exist. It was noted that there was no table of
contents, multiple chapters were outdated, a chapter was inconsistently
labeled, chapter revisions were completed with existing versions of the
chapters representing several different years, and appendices were missing.
The Purchasing Division management has informed the OCA that the City is
currently in the process of updating their Purchasing Manual with a finalized
version expected to be completed in FY2025. The “Design Build” contract
type is expected to have a designated chapter in the updated version as
well. The absence of a well-documented purchasing manual can lead to
inconsistencies and inefficiencies in the procurement process. A purchasing
manual should provide clear guidelines for City employees to reduce
ambiguity and ensure that all steps are followed correctly and consistently.
This would also enhance transparency, allowing for better oversight and
accountability.
Regular updates to the Purchasing Manual will facilitate the timely
identification and addressing of any gaps or inefficiencies, thereby
enhancing the overall effectiveness of the City’s procurement strategy.
Recommendation The City should complete adding in the City’s Purchasing Manual a chapter
that explains the necessary steps for processing a “Design Build” contract.
It is crucial that the City takes steps to document the process for procuring a
“Design Build” contract. This could involve detailing each step of the
process, from the initial solicitation to the final contract award. It would also
be beneficial to include examples of best practices and potential pitfalls to
avoid. By doing so, the City can ensure that its procurement process is
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robust, transparent, and in line with established procedures. This will
ultimately contribute to more effective and efficient procurement operations
within the City of Palo Alto. We recommend having a comprehensive and
well-documented process for all types of solicitations within the City’s
Purchasing Manual. It is our recommendation that the manual should
encompass all types of solicitations. This will provide the City with a clear
roadmap to ensure all types of solicitations and contracts are processed as
expected by management and in compliance with applicable laws and
regulations.
Furthermore, it is advisable that the City’s management regularly update the
Purchasing Manual to ensure that the procurement process remains in
alignment with the City’s evolving goals and needs. The Purchasing Manual
should include a table of contents, frequently revised chapters, appropriate
chapter titles, and all appendices. It is imperative that the City’s Purchasing
manual matches the current operations that are being conducted at the City.
Management
Response
Responsible Department(s): Administrative Services Department
Concurrence: Agree
Target Date: November 2024
Action Plan:
Staff agrees that updating the purchasing manual to include all solicitation
processes is a good practice. This ensures that the manual is
comprehensive and well documented of all processes and types of
solicitations. This will provide the organization with a clear roadmap to
ensure all types of solicitations and contracts are processed as expected
and in compliance with the municipal code and applicable laws and
regulations. Also, it is good practice to update the manual on a regular basis
to ensure it has the most update to date information.
Staff will update the manual to include Design Build solicitations in a new
chapter. It is relevant to note that design build solicitations occur roughly
once per year. All other solicitation processes are captured in the current
version of the manual.
The manual will be reviewed for necessary updates on a regular basis at
least annually.
Finding 3: Needs
assessment and
market analysis
Before an organization invites providers of goods and services to bid on
a contract, it is imperative for an organization to conduct a thorough
needs assessment and market analysis to understand what is required
to meet the organization’s needs and obtain necessary information for
successful procurement. Based on the results of needs assessment
and market analyses, an organization develops the specifications,
requirements, a statement of work, and award criteria to properly
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describe the organization’s needs in the solicitation document and
attract a sufficient number of qualified bidders.
The OCA noted the following:
•The City currently lacks a formalized needs assessment process
within its Purchasing Manual.
•The City departments perform their own needs assessments and
market analyses before submitting budget requests.
•The Purchasing Division does not collect or review the needs
assessments and market analyses conducted by the City
departments.
As described in the Best Practices section of this report, the State and
Local Government Procurement: A Practice Guide by NASPO,
corroborates the importance of an organization assessing needs and
analyzing the market for thinking strategically and encouraging
competition. The Auditing Procurement in the Public Sector’s Practice
Guide, published by the IIA notes that risks exist when needs
assessments and market analyses are not performed. Without them,
the City may:
•Over- or under-estimates needs.
•Inadequately or unrealistically define specifications.
•Procure insufficient or inferior goods and services.
•Have insufficient capacity to assess needs and analyze market.
•Fail to attract a sufficient number of qualified bidders/reduced
competition.
Recommendation It is recommended that the City integrate standardized needs assessment
and market analysis procedures that are applicable across all departments
to enable the procurement professionals to gather and analyze the
information. The expectations and guidance should be formally documented
in the City’s Purchasing Manual.
The execution of these procedures should involve a comprehensive review
by the appropriate Purchasing Division personnel, ensuring that and that the
results are utilized to encourage bid competition, meet strategic goals,
comply with laws and regulations, and to leverage a buying power.
Management
Response
Responsible Department(s): Administrative Services Department
Concurrence: Partially Agree
Target Date: September 2024
Action Plan:
Currently, City departments handle needs assessments and market review
with different degrees of formality where information gained from such
reviews supports the solicitation process. On one end of the spectrum, a
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department may have detailed specifications and a thorough understanding
of the marketplace of vendors because the market is well defined. On the
other side, a scope of services might exist but a formal process of seeking
qualifications from the market is performed in what is called a request for
information or RFI process to gain more specific market awareness. These
two ends of the spectrum and those in between are currently believed to be
sufficient while not burdening the solicitation process with added time.
The Purchasing Division can ask departments for the needs assessment and
market analysis where it exists and include that in the solicitation
documentation file going forward. This approach to addressing the
recommendation builds on what is currently done by departments. This
approach seems like a reasonable step that won’t add significant time to the
procurement process. However, creating a new City integrated standardized
needs assessment and market analysis procedures across all departments
would be more time consuming and costly for procurement transactions,
likely exceeding the foreseeable potential benefits.
Finding 4:
Vendor record
creation
The OCA evaluated the use of technology in enhancing the integrity,
efficiency, and transparency of the procurement process. This included
ensuring the consistency and validity of all relevant information and
data.
The OCA’s walkthrough interview regarding creation of vendor records
within the Enterprise Resource Planning (ERP) system revealed that
the City’s ERP system, SAP, permits the creation of duplicate vendors.
This was determined during inquiry with the Purchasing Division, and
corroborated when viewing a requested SAP system generated
approved vendor listing. Per our analysis of the vendor listing (report
called “Vendor Export SAP 2023”), there were 28 instances where the
same vendors were included, throughout the report, with different
“Supplier” numbers, or different vendor numbers.
It appears that the City has a mitigating control in place, where all
vendors that are created are reviewed by appropriate personnel prior to
being posted to SAP. However, since manual reviews are not designed
to identify duplicate vendors and payments, risks still exist due to the
lack of adequate application controls to prevent the City from creating
duplicate vendor records.
Risks include the potential for making duplicate payments to the same
vendor or making erroneous payments, which could negatively impact
the city’s financial standing. There is also a risk of fraud, where
payments could be made against fraudulent invoices to internal and
external fraudsters. Additionally, this could lead to noncompliance with
laws, regulations, and provisions, and compromise the accuracy and
completeness of data quality.
Recommendation The City should implement application controls that help the City avoid
creating duplicate vendor records unintentionally. Additionally, the City
should implement a manual control where the creation and modification of
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12 Auditing Procurement in the Public Sector, November 21, 2021, The Institute of Internal Auditors
Auditing Procurement in the Public Sector (theiia.org)
new vendors are subject to appropriate independent reviews at the time of
creation and modification to prevent duplicate or unauthorized entries and
errors.
The City should implement procedures where vendor records in the ERP
system are periodically validated and monitored. The City should remove
any duplicate and invalid vendor records. The quality control process should
be completed annually.
Management
Response
Responsible Department(s): Administrative Services Department
Concurrence: Partially Agree
Target Date: August 2024
Action Plan:
Staff agrees to pursue with the SAP ERP team in the future the possibility of
implementing application controls that would create a hard stop to creating a
duplicate vendor or similar available options. As it currently stands SAP does
not offer this capability now according to the ERP team. While it is useful to
create duplicate vendor records, in instances of needing a second vendor
address, for example, no other options exist other than to create duplicate
vendors. The SAP ERP system does not allow for multiple address per
vendor. Sometimes vendors have one corporate address, for instance, and a
separate payment address. An application hard stop could further inhibit the
creation of duplicate vendors beyond the current use cases. Staff currently
operates under a procedure that requires staff to check for duplicate vendors
before creating a new vendor. If a duplicate vendor is identified, it is
eliminated from being usable unless it is needed as a second address.
Additional
Observation:
Vendor
performance and
contract close-
out process
In the current procurement process, a project manager, who is a
department-level analyst, is assigned to each individual contract. The project
manager’s responsibilities include managing vendor relations, overseeing
activities and transactions, and monitoring and concluding the contract.
However, it was observed that there is no formalized procedure in place for
the contract closeout process. The close-out process, which is initiated when
a contract is finalized and completed, is typically handled at the department
level by a department administrator or the project manager.
The Auditing Procurement in the Public Sector Practice Guide12 notes having
a contract close-out process as a best practice, including reconciliation of
planned against delivery budgets, evaluation of vendor performance,
incorporation of public feedback and oversight by a central authority. The
City might consider whether a more formal close-out process would be
beneficial.
We noted that post-contract tracking and monitoring of vendor performance
is currently not being conducted in a formalized manner. According to
purchasing staff, vendor performance is not a function of the purchasing
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process. However, monitoring vendor performance and determining where
this function should reside is important for the City to consider when
developing formal contract close-out procedures.
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Appendices
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Appendix A: City of Palo Alto Contract Types
The City of Palo Alto’s procures various contract and solicitation types. The City’s Purchasing Manual provides City departments with a practical step-by-
step guide through the various stages of the purchasing process. The Purchasing Manual identifies the contract types and discusses each process
separately in detail. Below is a chart of the contract types that are currently being procured by the City, as well as the solicitation types that can be
utilized for each contract.
Solicitation Types:
¹ Request for Information (RFI) – document that is used to gather information about goods or services. Information is used to compare potential
suppliers.
² Request for Proposal (RFP) – document that invites potential suppliers to submit bids for a project or service.
³ Request for Quotation (RFQ) – document that an organization sends to selected suppliers to get prices quotes for a project or service.
⁴ Invitation for Bid (IFB) – document that invites potential suppliers to submit bids for a project or service, based mainly on price.
⁵ Cooperative Purchasing (COOP) – buying goods or services together with buyers to get the lowest price and best terms.
⁶ Informal Bids – type of solicitation that includes bidding from suppliers for goods or services that are not subject to public notice.
Contract Type RFI¹ (Y/N)RFP²
(Y/N)RFQ³ (Y/N)IFB⁴ (Y/N)COOP⁵ and/or
Informal Bid⁶
Included in
Purchasing
Manual (Y/N)
Purchase of Goods N N Y N COOP /
Informal Bid Y
Purchase of General
Services N Y Y N COOP / N/A Y
Purchase of General
Services – IT only N Y Y N COOP /
Informal Bid Y
Professional Services Y Y N N COOP /
Informal Bid Y
Public Works N N N Y COOP /
Informal Bid Y
Design Builds N Y N N N/A / N/A N
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City Council
Staff Report
From: City Manager
Report Type: INFORMATION REPORTS
Lead Department: Planning and Development Services
Meeting Date: September 23, 2024
Report #:2408-3408
TITLE
Accessory Dwelling Unit (ADU) - 2024 Quarter 2 (April - June 2024) Report
RECOMMENDATION
This is an informational report, and no action is required.
ANALYSIS
This report transmits information related to application activity for accessory dwelling units
(ADU), including junior accessory dwelling units (JADU) for the first half of calendar year 2024.
Since 2015, the City has received 736 ADU/JADU building permit applications and issued 557
building permits. In the first half of 2024, the City received 72 new applications, issued 57 ADU
permits, and provided an approved Final Inspection on 46 ADU/JADU permits. As it relates to
the Housing Element, the data continues to support the anticipated housing unit production
expected from ADU/JADUs for the current housing element cycle, which is an average of 64
units per year over the 8-year planning period or a total of 512 units.
Of the applications submitted in the first half of 2024, the ADU sizes range from 165 to 1,000
square feet, with an average size of 517 square feet. Approximately 43% of applications are
located north of Oregon Expressway, and 57% are located south of Oregon Expressway. Since
2017, the majority of ADU/JADU permits relative to the Oregon Expressway has shifted
between north and south from year to year. Further details can be found in Table 1 of
Attachment A.
ENVIRONMENTAL REVIEW
This informational report is not a project as defined by the California Environmental Quality Act
Guidelines.
ATTACHMENTS
Attachment A: Q2 2024 ADU Data
APPROVED BY:
Jonathan Lait, Planning and Development Services Director
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Table 1: Summary of ADU Permits from 2015-2024 (Q1 – Q2)
Category 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 (Q1-Q2)
New ADU Applications Filed1 10 9 28 55 75 78 136 151 122 74
Permits: Ready to Issue (City Approved)2 8 5 12 39 62 46 112 127 135 58
Permits: Issued (Permit Obtained)3 8 5 12 36 62 43 89 120 125 57
Permits: Final Inspection Approved4 3 4 9 12 33 46 37 62 101 46
Permits Expired 1 1 1 1
Detached ADUs (Submitted)5 20 35 52 52 80 80 48 28
Detached ADUs (Issued)5 8 24 41 33 55 64 57 22
Attached ADUs
(Submitted)6 8 20 23 20 56 44 43 31
Attached ADUs (Issued)6 4 11 21 9 34 32 40 26
Junior ADUs (Submitted)7 1 1 1 25 27 31 15
Junior ADUs (Issued)7 1 1 1 9 24 28 9
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Category 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 (Q1-Q2)
Average Application Processing Time (Days Including Weekends)8 127 214 118 183 135 197 162 193 187 192
Average Construction Time (Days Including
Weekends)9
578 751 330 287 173 262 455 431 496 489
City Impact Fees
Collected for New ADUs10 $451,514 $402,012 $198,962 $44,057 $139,592 $540,453 $487,322 $274,782
ADU Size Smallest 150 SF 159 SF 220 SF 208 SF 178 SF 192 SF 227 SF 165 SF
ADU Size Largest 900 SF 900 SF 1,031 SF 1,000 SF 1,218 SF 2,217 SF 1000 SF 1000 SF
Average ADU Size 470 SF 469 SF 383 SF 518 SF 550 SF 589 SF 571 SF 517 SF
ADU Location Relative to Oregon Expressway
North 46% 49% 52% 55% 49% 52% 41% 45%
South 54% 51% 48% 45% 51% 48% 59% 55%
Source: City of Palo Alto Accela Data January 2015 through June 2024
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Notes:
1. Any ADU/JADU Application SUBMITTED for the year
2. Any ADU/JADU application Permit 'READY TO Issue' for the year (regardless of when it was submitted)
3. Any ADU/JADU Permit ISSUED for the year (regardless of when it was submitted)
4. Any ADU/JADU Permit receiving a Final Inspection (Ready to Occupy) for the year, regardless of when the application wassubmitted. Years 2015-2017 data point not available.
5. Any Detached ADU Permit Application submitted for the year/Any Detached ADU Permit Issued for the year, regardless of when the application was submitted. Years 2015-2016 data point not available.
6. Any Attached ADU Permit Application submitted for the year/Any Attached ADU Permit Issued for the year, regardless of when the application was submitted. Years 2015-2016 data point not available.
7. Any JADU Permit Application submitted for the year/Any JADU Permit Issued for the year, regardless of when the application was submitted. Years 2015-2016 data point not available.
8. Average number of days from permit application submittal to when permit is approved and ready to issue. This average includes weekends and days application is pending due to applicant preparation of resubmittal or additional information from applicant.
9. Average number of days from permit issued to final inspection completed. This average includes weekends and days staff is waiting for applicant to schedule the next required inspection; it also includes time related to the construction of a primary residence when the J/ADU is built at the same time.
10. Impact Fees collected for ADU’s permitted for the year. Years 2015-2016 data point not available.
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ADU Applications Submitted for CY 2024 (Q1) New Construction Conversion Type of Conversion # of apps Dwelling Type Project Location Zoning District Date Filed Application Status Attached Detached Attached Detached Garage Other Acc. Structure/Space # of bdrms ADU Size
1 ADU North R-1 2/9/24 Incomplete x 1 324
2 ADU North R-1 (10000) 3/19/24 Pending Resubmittal x 2 868
3 JADU North R-1 3/26/24 Pending Resubmittal x x 1 196
4 ADU North R-1 2/20/24 Pending Resubmittal x 1 536
5 ADU North R-1 2/15/24 In Plan Check x x 2 720
6 ADU North R-1 3/13/24 Pending Resubmittal x 2 749
7 ADU North RM-15 1/8/24 Pending Resubmittal x 1 566
8 ADU North R-1 2/1/24 Pending Resubmittal x 1 514
9 ADU North R-1 3/13/24 Pending Resubmittal x x 0 392
10 ADU South R-1 2/7/24 In Plan Check x 2 749
11 ADU South R-1 2/29/24 In Plan Check x 1 750
12 ADU South R-1 3/28/24 Pending Resubmittal x 2 1,000
13 ADU South R-1 2/29/24 Pending Resubmittal x 2 749
14 ADU South R-1 1/12/24 Pending Resubmittal x 1 461
15 ADU South R-1 1/29/24 Permit Issued x 2 750
16 ADU South R-1 3/5/24 Pending Resubmittal x 2 805
17 ADU South R-1 (7000) 1/16/24 Pending Resubmittal x x 1 238
18 ADU South R-1 (8000) 3/20/24 Pending Resubmittal x 1 523
19 ADU South R-1 (8000) 1/2/24 Permit Issued x x 0 485
20 ADU South R-1 (8000) 3/12/24 Pending Resubmittal x 0 608
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ADU Applications Submitted for CY 2024 (Q1) New Construction Conversion Type of Conversion
# of apps Dwelling Type Project Location Zoning District Date Filed Application Status Attached Detached Attached Detached Garage Other Acc. Structure/Space # of bdrms ADU Size
21 ADU South R-1 3/21/24 Pending Resubmittal x 2 750
22 ADU North RM-15 3/5/24 Submitted x x 0 645
23 ADU South R-1 2/29/24 Pending Resubmittal x x 1 402
24 ADU South R-1 (S) 2/14/24 Pending Resubmittal x x 1 519
25 ADU South R-1 (S) 3/6/24 Pending Resubmittal x 2 750
26 ADU South R-1 2/1/24 Pending Resubmittal x 1 600
27 ADU South RE 3/15/24 Incomplete x x 1 675
28 ADU North R-1 (10000) 3/6/24 Pending Resubmittal x x 1 524
29 ADU North R-1 1/30/24 Pending Resubmittal x x 1 456
30 JADU South R-1 1/11/24 Pending Resubmittal x x 1 478
31 ADU North R-1 2/2/24 Pending Resubmittal x 1 300
32 JADU South R-1 2/13/24 In Plan Check x x 1 357
33 ADU South R-1 2/27/24 In Plan Check x x 1 337
34 JADU South R-1 (8000) 3/27/24 Pending Resubmittal x x 0 280
35 ADU South R-1 3/19/24 Pending Resubmittal x 2 743
36 ADU North R-1 2/10/24 Pending Resubmittal x x 1 412
37 ADU North R-2 3/18/24 In Plan Check x x 1 360
38 JADU North R-1 2/12/24 In Plan Check x 1 493
39 ADU North R-1 3/15/24 Pending Resubmittal x 1 480
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ADU Applications Submitted for CY 2024 (Q2) New Construction Conversion Type of Conversion
# of apps Dwelling Type Project Location Zoning District Date Filed Application Status Attached Detached Attached Detached Garage Other Acc. Structure or Space
# of bdrms ADU Size
40 JADU SOUTH R-1 4/4/24 Pending Resubmittal x x 1 500
41 JADU NORTH R-1 4/12/24 Resubmitted x 1 400
42 JADU NORTH R-1 (10000) 4/24/24 Pending Resubmittal x 1 165
43 JADU SOUTH R-1 5/3/24 Revisions Received x x 1 400
44 JADU SOUTH R-1 5/16/24 Pending Resubmittal x x 1 451
45 JADU SOUTH R-1 5/10/24 Incomplete x x 1 238
46 JADU SOUTH R-1 5/30/24 Pending Resubmittal x 1 476
47 JADU NORTH R-1 6/19/24 Submitted - PC Required x 1 478
48 JADU SOUTH R-1 6/4/24 Pending Resubmittal x 1 500
49 JADU SOUTH R-1 6/13/24 Pending Resubmittal x 1 466
50 ADU SOUTH R-1 6/17/24 Pending Resubmittal x 1 613
51 ADU NORTH R-1 6/4/24 Resubmitted x x 1 456
52 ADU NORTH R-1 6/5/24 Pending Resubmittal x 1 355
53 ADU SOUTH R-1 6/7/24 Pending Resubmittal x 2 749
54 ADU SOUTH R-1 (7000) 6/20/24 Submitted - PC Required x 1 735
55 ADU SOUTH R-1 6/24/24 Submitted - PC Required x 1 798
56 ADU NORTH R-1 (10000) 6/3/24 Pending Resubmittal x 2 800
57 ADU SOUTH R-1 (8000) 5/14/24 Resubmitted x 2 809
58 ADU NORTH R-1 5/23/24 Pending Resubmittal x x 1 553
59 ADU SOUTH R-1 (7000) 5/28/24 Resubmitted x 2 609
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ADU Applications Submitted for CY 2024 (Q2) New Construction Conversion Type of Conversion
# of apps Dwelling Type Project Location Zoning District Date Filed Application Status Attached Detached Attached Detached Garage Other Acc. Structure or Space
# of bdrms ADU Size
60 ADU SOUTH R-1 5/30/24 Pending Resubmittal x 2 800
61 ADU NORTH R-1 5/7/24 Pending Resubmittal x x 1 261
62 ADU NORTH R-1 5/9/24 Submitted - PC Required x x 0 340
63 ADU NORTH R-1 4/15/24 Pending Resubmittal x 0 567
64 ADU NORTH R-1 4/16/24 Pending Resubmittal x x 1 275
65 ADU NORTH R-1 4/19/24 Resubmitted x 1 534
66 ADU SOUTH RM-15 4/23/24 Resubmitted x 1 400
67 ADU NORTH R-1 4/5/24 Pending Resubmittal x 1 432
68 ADU NORTH R-1 4/9/24 Revisions Received x 1 534
69 ADU NORTH R-1 4/10/24 Resubmitted x x 2 750
70 ADU SOUTH R-1 4/12/24 Pending Resubmittal x 1 399
71 ADU SOUTH R-1 4/2/24 Resubmitted x 1 766
72 ADU SOUTH R-1 4/3/24 Pending Resubmittal x 1 750
73 ADU SOUTH RM-30 6/13/24 Submitted - PC Required x 1 565
74 ADU NORTH R-1 4/5/24 Pending Resubmittal x 1 432
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City Council
Staff Report
From: City Manager
Report Type: INFORMATION REPORTS
Lead Department: Administrative Services
Meeting Date: September 23, 2024
Report #:2311-2235
TITLE
City of Palo Alto's Energy Risk Management Report for the first half of Fiscal Year 2024 (July 1,
2023-December 31, 2023).
RECOMMENDATION
This is an informational report and no City Council action is required.
EXECUTIVE SUMMARY
Staff continues to purchase electricity and gas in compliance with the City’s Energy Risk
Management Policies, Guidelines, and Procedures. This report is based on market prices and load
and supply data as of December 31, 2023, the first half of Fiscal Year (FY) 2024.
The projected cost of the City’s fixed-price electricity purchases is $0.2 million lower than the
market value of that electricity as of December 31, 2023 for the 12-month period beginning
January 1, 2024. During the first half of FY 2024 (July 1, 2023 through December 31, 2023) the
City’s credit exposure to fixed price contracts is minimal. The projected Electric Supply
Operations Reserve is above the FY 2024 minimum guideline reserve level and the projected
gas reserve is within the FY 2024 guideline reserve level range.
There were no exceptions to the Energy Risk Management Policies, Guidelines, or Procedures
during this reporting period.
BACKGROUND
The purpose of this report is to inform the Council about the status of the City’s energy portfolio
and transactions executed with energy suppliers for the first half of FY 2024. The City’s Energy
Risk Management Policy requires that staff report on a semi-annual basis on: 1) the City’s energy
portfolio; 2) the City’s credit and market risk profile; 3) portfolio performance; and 4) other key
market and risk information. The City’s Energy Risk Management Policy describes the
management organization, authority, and processes to monitor, measure, and control market
risks. “Market risks” include price and counterparty credit risk. These are risks that the City is
exposed to on a regular basis in procuring electric supplies, and to a lesser extent for gas supplies
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which are purchased at market rates via a monthly index price. The City’s Energy Risk
Management function, whose role is to monitor and mitigate these energy market risks, is a part
of the Treasury Division of the Administrative Services Department. This semi-annual of FY 2024
Energy Risk Management report contains information on the following:
•Electric Supplies
•Hydroelectricity
•Fixed-Price Forward Electricity Purchases
•Gas Supplies
•Credit Risk
•Electric Forward Mark-to-Market Values
•Electric and Gas Supply Operations Reserves Adequacy
•Exceptions to Energy Risk Management Policies, Guidelines, or Procedures
ANALYSIS
Electric Supplies
In order to serve the City’s electric supply demands, the City obtains electricity from hydroelectric
resources (from Western and Calaveras Hydroelectric Projects); long-term renewable energy
contracts (from landfill gas converted to electricity, wind, and solar projects); wholesale
purchases which are carried out via fixed-priced forward market purchase contracts; and the
electric spot market.
Figure 1 below illustrates the projected sources and expected purchases of electricity supplies by
month for the 36 months from January 1, 2024 to December 31, 2026, in megawatt-hours
(MWh). The negative bars represent sales of excess power on the wholesale market.
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Hydroelectricity
The cost of hydroelectricity received from Western over the 12-month period ending
December 31, 2023 is lower than the market value of electricity by $5.7 million. Hydroelectric
power from Calaveras was expected to cost $8.4 million (as of December 31, 2023) more than
the market value of electricity. Note that Calaveras provides benefits not reflected in the mark-
to-market (MTM, defined in the following section) calculation, including, for example, ancillary
services (e.g., the ability to regulate energy output when the electric grid needs change), and that
much of the above-market costs are related to debt service on the cost of constructing the dam.
This debt is due to be retired in 2032, and retirement will substantially improve the value of the
project relative to the market price of electricity.
Fixed-Price Forward Electricity Purchases
The City, as of December 31, 2023, has purchased and sold fixed-priced supplies of electricity for
the next 12 months totaling 41,790 MWh with an average price of $87.59 per MWh and totaling
69,280 with an average price of $47.08, respectively. The City contracted for these purchases
with one of its approved counterparties: NextEra Energy Resources. The 12-month MTM value
of the City’s forward transactions for wholesale power were $0.2 million for calendar year 2024;
a positive MTM means that the sales price for these transactions was lower than the market
value as of December 31, 2023. The City tracks the mark to market value of its forward contracts
to measure the value that would be lost due to a counterparty failing to deliver on its contractual
commitments, forcing the City to purchase replacement electricity in the market. The exposure
listed above is well within risk management guidelines and presents little risk to the City’s
financial outlook.
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
Jan-24
Mar-24
May-24
Jul-24
Sep-24
Nov-24
Jan-25
Mar-25
May-25
Jul-25
Sep-25
Nov-25
Jan-26
Mar-26
May-26
Jul-26
Sep-26
Nov-26
Megawatt Hours
Figure 1 -Electric Balance Geothermal &
WholesaleWind
Western
Solar
Landfill
Calaveras
Total Load
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The figures below represent the electric forward volumes (Figure 2) and MTM positions (Figure
3) for each electric supplier by month of delivery for all forward fixed-price electricity contracts
over the 12-month period ending December 31, 2024.
Gas Supplies
In order to serve the City’s natural gas needs, the City purchases gas on the monthly and daily
spot markets. The City purchases all of its forecasted gas needs for the month ahead at a price
based on the published monthly spot market index price for that month. Within the month, the
-20,000
-15,000
-10,000
-5,000
0
5,000
10,000
15,000
20,000
25,000
01/01/24
02/01/24
03/03/24
04/02/24
05/03/24
06/02/24
07/03/24
08/03/24
09/01/24
10/02/24
11/01/24
12/02/24Megawatt Hours
Figure 2 -Electric Forward Volumes ending as of 12/31/24
NextEra Energy Resources
(1,000,000)
(500,000)
-
500,000
1,000,000
1,500,000
2,000,000
Jan-24
Feb-24
Mar-24
Apr-24
May-24
Jun-24
Jul-24
Aug-24
Sep-24
Oct-24
Nov-24
Dec-24
MTM Dollar Amount
Figure 3 -Electric Mark-to-Market Values ending as of 12/31/24
NextEra Energy Resources
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City’s gas operator buys and sells gas to match the City’s daily needs if the actual daily usage is
different from the forecasted daily usage. Those daily transactions are made at an average price
based on the published daily spot market index. These costs are passed through directly to
customers using a monthly rate adjustment mechanism, leaving the City with little or no price
risk or counterparty risk exposure for the gas utility.
Credit Risk
Staff monitors and reports on counterparty credit risk based on the major credit rating agencies
(S&P and Moody’s) scores, Ameresco has a 6.93 percent Expected Default Frequency (EDF) which
is higher than the recommended EDF level of 0.08%. Staff is continuing to monitor Ameresco’s
EDF and will continue to report to City Council in this semi-annual report. Table 1 below shows
the EDF values for the City’s renewable energy counterparties. Table 2 below shows the EDF
values and credit exposure for the City’s electric suppliers. There is virtually no credit exposure
to the City’s gas suppliers since the supplies are purchased on a short-term basis.
Table 1 - Renewable Counterparties Credit Ratings and EDFs as of 12/31/23
Table 2 - Credit Exposure and Expected Default Frequency of Electric Suppliers as of 12/31/23
Electric Forward Mark-to-Market Values
It is important to note that, for contracts with renewable energy companies, Council waived the
investment grade credit rating requirement of Section 2.30.340(d) of the Palo Alto Municipal
Code, which applies to energy companies that do business with the City. In addition, the City
does not pay for renewable energy until it is received, thereby reducing risk.
Current
Expected
Default
Frequency
Moody's
(EDF)
Implied
Rating
Ameresco 6.93%Ca
0.01%Baa3
Source: Moody's CreditEdge website
Avangrid (fomerly Iberdrola)
Renewable Counterparty
Electric
Counterparty
Cost
of Transaction
Market Value
of Transaction
Current
Expected
Default
Frequency
Moody's
(EDF)
Implied
Rating
NextEra 2,439,365$ 2,237,891$ 0.042%A3
Totals 2,439,365$ 2,237,891$
(85)$ (201,474)$
(201,474)$ (85)$
Cost vs.
Market
(MTM) Value
S
&
P
C
r
Expected Loss
(MTM x
Expected
Default
Frequency)
A-
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An EDF of 0.08% or below indicate supplier’s current expected default frequency falls within the
investment grade range. An EDF above 0.08% indicates the supplier may have financial issues
that require monitoring.
Electric and Gas Supply Operations Reserves Adequacy
As shown in Table 3 below, the Electric Supply Operations reserve’s unaudited balance as of
December 30, 2023 is $60.6 million, which is $40.7 million above the minimum reserve guideline
level. Contributing to this higher reserve are related to a favorable litigation settlement of the
Central Valley Project Improvement Act (CVPIA) operated by the U.S. Bureau of Reclamation and
an increase in wholesale revenues. The plan is to transfer the excess reserves to other reserves
(e.g., Special Projects, CIP, etc.). The audited Gas Operations reserve balance is $9.8 million,
which is at the minimum reserve guideline level.
Table 3 - Electric Supply Operations and Gas Operations Reserve Levels for FY 2024
Exceptions to Energy Risk Management Policies, Guidelines, or Procedures
There were no exceptions to the Energy Risk Management Policies, Guidelines, or Procedures to
report during the semi-annual of FY 2024.
FISCAL/RESOURCE IMPACT
This is an information report; no Council action required.
STAKEHOLDER ENGAGEMENT
ASD staff works internally with the Utilities Department to prepare this report.
ENVIRONMENTAL REVIEW
This Council informational report is not a project under California Environmental Quality Act
(CEQA) as defined in CEQA Guidelines, section 15378, because it has no potential for resulting
in either a direct or reasonably foreseeable indirect physical change in the environment.
APPROVED BY: Lauren Lai, Director of Administrative Services
Fund
Audited
Reserve for
Operations
Balance as of
06/30/2023 ($
Millions)
Changes to
the
Reserves
for
Operations
($ Millions)
Unaudited
Reserve for
Operations
Balance as of
12/31/23
($ Millions)
Minimum
Guideline
Reserve
Level
($ Millions)
Maximum
Guideline
Reserve
Level
($ Millions)
Electric $38.88 $21.72 $60.60 $19.90 $39.80
Gas $14.44 ($4.64)$9.80 $9.76 $19.52
FY 2024
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