HomeMy WebLinkAbout2016-05-12 Finance Committee Agenda PacketFinance Committee
1
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May 12, 2016
Special Meeting
Council Chambers
6:00 PM
Agenda posted according to PAMC Section 2.04.070. Supporting materials are available in
the Council Chambers on the Thursday 10 days preceding the meeting.
PUBLIC COMMENT
Members of the public may speak to agendized items. If you wish to address the Committee on any issue that is on this agenda, please complete a speaker request card located on the table at the entrance to the Council
Chambers/Council Conference Room, and deliver it to the Clerk prior to discussion of the item. You are not required
to give your name on the speaker card in order to speak to the Committee, but it is very helpful.
Call to Order
Oral Communications
Members of the public may speak to any item NOT on the agenda.
Action Items
6:00-6:15PM
1.Staff Responses to Committee Questions From Budget Hearing
Meetings
6:15-7:00PM
2.Finance Committee Recommendation Regarding Amendments to the
Muni Fee Schedule for Fiscal Year 2017
7:00-8:00PM
3.Public Works Overview, Operating Budget pp. 345-349
a)General Fund, Operating Budget pp. 350-360
b)Refuse Fund
i. Operating Budget pp. 361-368
ii. Capital Budget pp. 491-500
c)Storm Drain Fund
i. Operating Budget pp. 369-377
ii. Capital Budget pp. 501-518
d)Wastewater Treatment Fund
i. Operating Budget pp. 378-386
ii. Capital Budget pp. 551-580
Capital Budget Book Operational Budget Book
Staff Memo
2 May 12, 2016
MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA
PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE.
DURING NORMAL BUSINESS HOURS.
e) Airport Fund
i. Operating Budget pp. 387-393
ii. Capital Budget pp. 327-342
f) Vehicle Replacement and Maintenance Fund
i. Operating Budget pp. 394-401
ii. Capital Budget pp. 657-686
8:00-8:30PM
4. Approval of Staff Recommendation for a Three Year Pilot Contract for
an On-site Fleet Parts and Inventory Program With Genuine Parts
Company for an Estimated Annual Cost of $171,000
Future Meetings and Agendas
Adjournment
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3 May 12, 2016
MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA
PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE.
DURING NORMAL BUSINESS HOURS.
Finance Committee Items Tentatively Scheduled
Meeting
Date
Line
No. Item Title Referral
Date
Please see Budget Hearing Calendar for May
6/7/2016
1
Commercial and Residential Impact Fee Nexus Studies and
Review Ordinance to Adopt Housing Impact Fees
(Planning)
2
Ordinance Updating the Purchasing Section of the
Municipal Code (PAMC Chapter 2.30) to Streamline the
Purchasing Process and Update Language (ASD)
6/21/2016 3 3rd Quarter FY2016 Financial Report (ASD)
Finance Committee Items to be Scheduled
Referral
Date
Line
No. Item Title Status
2013 4 Police Services Utilization and Resources Study (Police)
To be
scheduled
in 2016
5 Consideration of stronger encroachment fees for
construction that impact portions or all of a city street or
sidewalk (Public Works)
6
Cubberley Center Master Plan: Additional Information and
a Timeline for the Site (requested by the FC) (City
Manager)
City of Palo Alto
Council & Finance Committee Budget Hearings
Fiscal Year 2017 Budget Process
Meeting Agenda
Mon, 4/25
City Council
6:00 PM,
Chambers
Transmittal of proposed Capital and Operating budgets to Council and forward to Finance
Committee for review and discussion
Tues, 5/3
Finance
Committee
6:00 PM,
Chambers
1) FY 2017 Proposed Budget Overview 6:00-6:45
2) Council Appointed Officials and Council 6:45-7:15
a) City Attorney, Operating Budget pp. 141-148
b) City Auditor, Operating Budget pp. 149-157
c) City Clerk, Operating Budget pp. 159-167
d) City Council, Operating Budget pp. 169-172
e) City Manager, Operating Budget pp. 173-182
3) Office of Sustainability, Operating Budget pp. 307-313 7:15-7:45
4) Human Resources Overview, Operating Budget pp. 253-257 7:45-8:30
a) General Fund, Operating Budget pp. 258-264
b) General Liability Fund, Operating Budget pp.265-268
c) Workers’ Compensation Fund, Operating Budget pp. 269-273
d) General Benefits Fund, Operating Budget pp. 475-478
5) Information Technology 8:30-9:00
a) Operating Budget pp. 275-288
b) Capital Budget pp. 629-656
6) Administrative Services Overview, Operating Budget pp. 183-188 9:00-9:30
a) General Fund, Operating Budget pp. 189-195
b) Printing and Mailing Fund, Operating Budget pp. 196-199
7) Non-Departmental, Operating Budget pp. 467-470 9:30-9:45
Thurs, 5/5
Finance
Committee
Special
Meeting
6:00 PM,
Chambers
1) May 3rd Budget Hearing Wrap-Up 6:00-6:15
2) Fire, Operating Budget pp. 239-251 6:15-6:45
3) Office of Emergency Services, Operating Budget pp. 299-306 6:45-7:15
4) Police, Operating Budget pp. 331-343 7:15-7:45
5) Community Services, Operating Budget pp. 201-221 7:45-8:30
6) Library, Operating Budget pp. 289-298 8:30-9:00
Tues, 5/10
Finance
Committee
Special
Meeting,
6:00 PM,
Chambers
1) May 5th Budget Hearing Wrap-Up 6:00-6:15
2) Retiree Health Benefit Fund, Operating Budget pp. 479-480 6:15-6:30
3) Planning and Community Environment, Operating Budget pp. 315-329 6:30-7:15
4) Special Revenue Funds Overview, Operating Budget pp. 115-119 7:15-7:45
a) Parking District, Operating Budget pp. 123-126
b) Stanford Development Agreement Fund, Operating Budget pp. 126-127
c) Other Special Revenue Funds, Operating Budget pp. 120-122
5) Development Services, Operating Budget pp. 223-238 7:45-8:15
City of Palo Alto
Council & Finance Committee Budget Hearings
Fiscal Year 2017 Budget Process
Meeting Agenda
Thurs, 5/12
Finance
Committee
Special
Meeting
6:00 PM,
Chambers
1) May 10th Budget Hearing Wrap-Up 6:00-6:15
2) Finance Committee Recommendation Regarding Amendments to the Muni Fee Schedule
for Fiscal Year 2017 (ID #6878) 6:15-7:00
3) Public Works Overview, Operating Budget pp. 345-349 7:00-8:00
a) General Fund, Operating Budget pp. 350-360
b) Refuse Fund
i) Operating Budget pp. 361-368
ii) Capital Budget pp. 491-500
c) Storm Drain Fund
i) Operating Budget pp. 369-377
ii) Capital Budget pp. 501-518
d) Wastewater Treatment Fund
i) Operating Budget pp. 378-386
ii) Capital Budget pp. 551-580
e) Airport Fund
i) Operating Budget pp. 387-393
ii) Capital Budget pp. 327-342
f) Vehicle Replacement and Maintenance Fund
i) Operating Budget pp. 394-401
ii) Capital Budget pp. 657-686
4) Approval of Staff Recommendation for a Three Year Pilot Contract for an On-site Fleet Parts and
Inventory Program With Genuine Parts Company (ID #6887) 8:00-8:30
Tues, 5/17
Finance
Committee
Special
Meeting,
7:00 PM,
Chambers
1) May 12th Budget Hearing Wrap-Up 7:00-7:15
2) General Fund Capital 7:15-8:15
a) Buildings and Facilities, Capital Budget pp. 95-176
b) Parks and Open Space, Capital Budget pp. 177-242
c) Streets and Sidewalks, Capital Budget pp. 243-262
d) Traffic and Transportation, Capital Budget pp. 263-300
e) Cubberley Infrastructure, Capital Budget pp. 305-324
3) Utilities Overview, Operating Budget pp. 403-410 8:15-9:15
a) Electric Fund
i) Operating Budget pp. 411-424
ii) Capital Budget pp. 343-434
b) Fiber Optics Fund
i) Operating Budget pp. 425-431
ii) Capital Budget pp. 435-454
c) Gas Fund
i) Operating Budget pp. 432-443
City of Palo Alto
Council & Finance Committee Budget Hearings
Fiscal Year 2017 Budget Process
Meeting Agenda
ii) Capital Budget pp. 455-490
d) Wastewater Collection Fund
i) Operating Budget pp. 444-453
ii) Capital Budget pp. 519-550
e) Water Fund
i) Operating Budget pp. 454-466
ii) Capital Budget pp. 581-626
4) Utilities Advisory Commission Recommendation that the Finance Committee Recommend that
City Council Adopt 1) a Resolution Approving the Fiscal Year 2017 Electric Financial Plan and
Amending the Electric Utility Reserves Management Practices, and 2) a Resolution Increasing
Electric Rates by 11 Percent Effective July 1, 2016 by Amending the E-1, E-2, E-2-G, E-4, E-4-G, E-4
TOU, E-7, E-7-G, E-7 TOU, E-14, and E-16 Rate Schedules, and Repealing Rate Schedules E-18 and
E-18-G (ID# 6857) 9:15-9:45
5) Utilities Advisory Committee Recommendation that the City Council Adopt: (1) a Resolution
Approving the Fiscal Year 2017 Gas Utility Financial Plan; and (2) a Resolution Increasing Gas
Rates by Amending Rate Schedules G-1 (Residential Gas Service), G-1-G (Residential Green Gas
Service), G-2 (Residential Master-Metered and Commercial Gas Service), G-2-G (Residential
Master-Metered and Commercial Green Gas Service), G-3 (Large Commercial Gas Service), G-3-G
(Large Commercial Green Gas Service), G-10 (Compressed Natural Gas Service) and G-10-G
(Compressed Natural Green Gas Service) (ID# 6858) 9:45-10:15
6) Utilities Advisory Commission Recommendation that the Finance Committee Recommend that
City Council Adopt a Resolution Adopting a Net Energy Metering Successor Rate E-EEC-1 (Export
Electricity Compensation), Establishing the Net Energy Metering Transition Policy, and Amending
Rule and Regulation 2 (Definitions and Abbreviations) and 29 (Net Energy Metering Service and
Interconnection) (ID# 6863) 10:15-10:45
Mon, 5/23
Finance
Committee
Special
Meeting,
1:00 PM,
Mitchell Park
Library
1) Wrap Up with Finance Committee 1:00-5:00
Mon, 6/13
City Council,
6:00 PM,
Chambers
Public Hearing - Budget Adoption
Please note that Agenda items may be advanced or delayed based on the number of budget proposals and/or
other discussion items.
Click here to access the City of Palo Alto transparency tool to see the 2017 Fiscal Year Proposed Budget and
the past 5 years of actual financial data. https://paloalto.opengov.com
City of Palo Alto (ID # 6878)
Finance Committee Staff Report
Report Type: Action Items Meeting Date: 5/12/2016
City of Palo Alto Page 1
Council Priority: City Finances
Summary Title: Muni Fee Schedule Fiscal Year 2017
Title: Finance Committee Recommendation Regarding Amendments to the
Muni Fee Schedule for Fiscal Year 2017
From: City Manager
Lead Department: Administrative Services
Recommended Motion
Finance Committee to recommend to the City Council approval of amendments to the
Municipal Fee Schedule for Fiscal Year 2017.
Recommendation
Staff recommends that the Finance Committee recommend to the City Council to approve
amendments to the Municipal Fee Schedule for Fiscal Year 2017.
Background
Annually, as part of the budget process, staff submits changes to the Municipal Fee Schedule
for Finance Committee review and approval and final approval by the City Council. The City
charges fees and fines for a variety of services provided. For example, these include fees for
photocopies, building inspection services, or room rentals.
In Fiscal Year 2013, staff embarked on a cost of services study for most departments. As
discussed below, Planning and Community Environment (PCE) and Development Services
departments were not included at that time. Part of that study included a review of the City’s
calculation of expenditures linked to a particular fee activity in order to determine the cost
recovery level. These expenditures include the budgeted cost of staff time including salaries
and benefits; related non-salary expenditures; department and citywide cost allocations to
recuperate costs for department management oversight and internal support functions such as
purchasing, payroll, or human resources.
On April 6, 2015 staff presented as part of a study session a draft User Fee Cost Recovery Level
Policy. Based on Council input and support for the policy, Council approved the policy on May
City of Palo Alto Page 2
18, 2015, detailed in the chart below.
The policy served as a guide to update the Planning and Community Environment Department
fees that were brought to the Finance Committee for review in Fiscal Year 2016. That policy
also served as a guide to update the Development Services Department Fees which are
currently under review through a separate study; recommendations based on that study are
anticipated to be brought forward for City Council consideration at a later date.
Discussion
As mentioned above, on May 18, 2015 the City Council approved the User Fee Cost Recovery
Level policy. During the April 6, 2015 Study Session, the City Council requested that staff bring
forward adjustments to fees as part of the amendments of the Municipal Fee Schedule for
Fiscal Year 2016 using the policy as guidance. Further, the City Council requested that fees
discussed in the report that brings forward amendments to the Municipal Fee Schedule focus
on (1) new fees, (2) deletion of existing fees, and (3) changed fees to attain a higher cost
recovery level consistent with other fees or based on a market study for similar services. That
direction has been continued in this report that recommends the Municipal Fee Schedule for
Fiscal Year 2017.
The majority of fees across the City were increased by 5.5%, the average increase of salaries
and benefits for Fiscal Year 2017, from Fiscal Year 2016 rates in order to maintain the cost
recovery level of Fiscal Year 2016 fees. Those fees that were adjusted by a factor other than
5.5% to attain a higher cost recovery level or adjusted based on a market study are detailed in
Attachment A.
City of Palo Alto Page 3
Both the Planning and Community Environment Department and the Development Services
Department underwent significant Fee Studies in Fiscal Year 2016. As such, the fees discussed
in this CMR, and Attachment A, do not include the majority of Planning and Community
Environment Fees, since their recommended changes were adopted by City Council on March
28, 2016 as part of CMR #6638: PUBLIC HEARING: Review and Adoption of a Resolution
Increasing and Adjusting Department of Planning & Community Environment User Fees Based
on a Cost of Services Study and Recommendations of the Finance Committee.
Development Services’ Fee adjustments are also not included in this report; recommendations
will be brought forward for City Council consideration separately based upon a consultant fee
study report.
Parallel to Development Services’ Fee Study, the Public Works Department conducted its own
internal evaluation of its fee setting based on the time necessary to perform the work
associated with each fee. As a result, Public Works is recommending a number of changes to its
fees, including those in the Public Works division of Development Services. Public Works’ fees,
including those in the Public Works division of Development Services, are therefore discussed in
this CMR and Attachment A.
These recommended fee adjustments represent significant increases from the 2016 fees, and
are expected to bring the Public Works fees much closer to full cost recovery. In addition, a
recommendation is included as part of the Fiscal Year 2017 Proposed Operating Budget to shift
approximately $100,000 of staffing costs in the Public Works division of Development Services
not associated with development-related work back to the Public Works Department. Over the
course of Fiscal Year 2017, staff will track specific Public Works fees and their related
expenditures to determine if they are properly aligned. If necessary, as part of the Fiscal Year
2018 budget process staff will recommend appropriate adjustments to bring them to full cost
recovery.
New Fees
As identified in Table 1 below, eleven new fees, outside of Development Services, are
recommended to be added to the Fiscal Year 2017 Proposed Municipal Fee Schedule: three in
Community Services, one in the Public Works division of Development Services, one in Planning
and Community Environment, three in the Police Department, and three in Public Works.
Community Services is proposing a rental cleaning fee for Mitchell Park in response to
customer demand for such a service, a fee to rent the Mitchell Park Community Center
Teen Center to non-profits, and a fee to rent the Cubberley Community Center Running
Track.
In the Public Works division of Development Services, a new inspection fee is proposed
to align with the Municipal Regional Stormwater Permit requirement by providing Wet
Season Construction Site Stormwater Inspection for high priority locations (such as
construction sites located on hillsides, near creeks, and/or with prior violations).
Planning and Community Environment (PCE) is proposing the addition of an Individual
City of Palo Alto Page 4
Review Refund Processing Fee for instances where staff work has already commenced
but an application is canceled. PCE also anticipates bringing forth a recommended
increase to the penalty for a Planned Community zone violation as part of the
amendments to the penalty schedule in October 2016.
The Police Department is adding fees for the renewal of a Secondhand Dealer license, an
Office of Personnel Management/Department of Defense background check, and a
separate fee for offsite document recovery, which was formerly included in the
subpoena fee.
Public Works is adding Map/Plan Review Fees for Individual Review (IR) of Trees,
Encroachment Permits for non-residential long-term encroachments that occur for
more than one month, and for Additional Temporary Discharge to Storm Drain from
Construction Site Dewatering to capture the ongoing inspection and administrative
costs.
City of Palo Alto Page 5
Table 1. New Fees for 2017
Changed Fees
One hundred and eighteen fees are recommended to be adjusted by either: (1) a factor greater
than 5.5% to attain a higher cost recovery level consistent with other fees, or, (2) increased
based on a market study. The 118 fees detailed in Attachment A are broken down as follows:
68 fees in the Community Services Department, seven fees in the Public Works Division of
Development Services, 28 fees in the Public Works Department, and 15 fees in the Police
Department Fee Title 2017 Proposed
Community
Services
Mitchell Park - Cleaning Package
(Add-on Only) $80.00 - $500.00 per event
Community
Services
Mitchell Park Community Center -
Teen Center
Basic Rate Non-Profit Rate
N/A $40.00 per hour
Community
Services
Cubberley Community Center -
Running Track Resident Rate
Non-Resident
Rate
$15.00 per hour $15.00 per hour
Development
Services - Public
Works
Storm Water - Wet Season
Construction Site Stormwater
Inspection
$230.00 per month October through
April
Planning and
Community
Environment
Individual Review - Individual Review
Refund Processing Fee
Note: Applies if staff work has
commenced
20% of Fee will be retained
Police Licenses – Secondhand Dealer –
Renewal
$75.00 per application
Police Background Check – OPM/DOD
Background Check
$5.00 per application
Police Special Fees – Offsite Document
Recovery
$30.00 per item
Public Works Map/Plan Review Fees – IR Review
Trees
$647.00 per application
Public Works Encroachment – Additional Non-
Residential Long-Term (More than 5
Days)
$500.00 per month
Public Works Storm Drain – Additional Temporary
Discharge to Storm Drain from
Construction Site Dewatering
$217.00 per week for the duration of
dewatering activities
City of Palo Alto Page 6
Department. Each fee is listed by name along with the Adopted Fiscal Year 2016 rate, the
Proposed Fiscal Year 2017 rate, the percentage change, and the fee change justification.
An example of a fee being increased by a factor greater than 5.5% is the Public Works Non-
Residential Encroachment Short-Term (Less than 5 days) Permit. Staff analyzed the body of
work necessary to perform the work of administering the permit and, based on this analysis,
the recommended fee increase is 101.2% in order to reach cost recovery. For facility rental fees
in the Community Services Department, staff is proposing to adjust fees by a range of -6.3% to
50% to align the fees with current market rates.
As discussed above, Attachment A does not include adjustments for the Development Services
consultant fee study, which will be brought forward at a later date. Additionally, no changes
from Fiscal Year 2016 for Planning and Community Environment are included, due to the
adoption of new Fees by City Council on March 28, 2016 as part of CMR #6638. Although not
outlined in this report, a 5.5% increase to these Planning Fees is recommended to be effective
January 1, 2017 to maintain cost recovery levels. A request was made by a member of the
community to reduce the cost of parking in the College Terrace Residential Preferential Parking
Program, but this report does not include changes for parking fees.
Deletion of Fees
Eight fees are recommended to be deleted in the Fiscal Year 2017 Proposed Municipal Fee
Schedule as follows: seven fees in the Community Services Department (CSD) and one fee in the
Library Department. Each fee, and the justification for its deletion, is detailed in Table 2 on the
next page.
City of Palo Alto Page 7
Table 2. Deletion of Fees for FY 2017
Dept.Fee Title Justification
Resident Rate Non-Resident
Rate
Resident Rate Non-Resident Rate
CSD Art Center - Green Room $55.00 per hour $83.00 per hour N/A N/A Deleting this package as the Green Room was
converted into offices and is no longer rentable.
CSD Art Center- Package Rental -
Auditorium and Green Room
$119.00 per hour $179.00 per
hour
N/A N/A Deleting this package as the Green Room was
converted into offices and is no longer rentable.
CSD Recreation Activities - Tennis
Court Registrations for
Tournaments and USTA League
Play
$5.00 - $16.00 per
hour
$7.50 - $24.00
per hour
N/A N/A Removal of fee as CSD no longer charges per person
and rather rents by the hour for Tournament and
League play.
CSD Cubberley Community Center -
Gynamistics Equipment
$5.00 per piece $7.50 per piece N/A N/A Deleting fee as the equipment is no longer available.
Basic Rate Non-Profit Rate Basic Rate Non-Profit Rate
CSD Cubberley Community Center -
Theater Rentals - D. Additional
Performance Hours beyond
Four Hours per performance
$115.00 per hour $81.00 per hour N/A N/A Deleting fee to simplify the pricing structure to have
one common set of add-on fees for all packages rather
than add-ons for each individual package.
CSD Cubberley Community Center -
Theater Rentals - H. Additional
Rehearsal Hours Past Ten
$130.00 per hour $91.00 per hour N/A N/A Deleting fee to simplify the pricing structure to have
one common set of add-on fees for all packages rather
than add-ons for each individual package.
CSD Cubberley Community Center -
Theater Rentals - K. Additional
Performance
$335.00 each $249.00 each N/A N/A Deleting fee to simplify the pricing structure to have
one common set of add-on fees for all packages rather
than add-ons for each individual package.
Library Sales - Coffee/Tea - Self-Serve Library discontinued coffee/tea self- service when
Rinconada Library reopened in 2015.
2016 Adopted 2017 Proposed
$2.00 per cup
Development Impact Fees
In the Planning and Community Environment Department, development impact fees were
updated in accordance with the applicable Municipal Code section which generally authorizes
indexed increases. Since these fees are governed by the applicable Municipal Code section,
they are not discussed in Attachment A. Staff anticipates a separate report to City Council in
August 2016 to amend the Municipal Code in order to standardize when these fees are paid,
bring uniformity to the calculation in effect, bring uniformity to the annual adjustment rate, and
other updates.
Resource Impact
The majority of fees are recommended to be increased by 5.5% due to the equivalent average
citywide increase in salary and benefits costs from the Fiscal Year 2016 Adopted Budget to the
Fiscal Year 2017 Proposed Budget. As outlined in Attachment A, 122 fees are recommended to
be changed by an amount other than 5.5% to attain a higher cost recovery level consistent with
other fees or adjusted based on a market study. Development Impact fees are increased in
accordance with the applicable Municipal Code sections.
As discussed, Development Services is in the process of a comprehensive consultant fee study
City of Palo Alto Page 8
analysis. It is anticipated that a report on the findings of that fee study and recommended
adjustments will be brought forward separately for City Council consideration in order to align
fees with their respective costs.
Policy Implications
These recommendations are consistent with existing City policies. In accordance with
Proposition 26, the amount of new or increased fees and charges is no more than necessary to
cover the reasonable cost of the City service, and the manner in which those costs are allocated
to a payer bears a fair and reasonable relationship to the payer’s burden on, or benefits
received from, such a City service.
Environmental Review
Adjustment to the Municipal Fee Schedule does not constitute a project as defined in Public
Resource Code Section 21065 for the purpose of the California Environmental Quality Act.
Attachments:
Attachment A - Municipal Fee Schedule Amendments for FY 2017 - Changed Fees (XLSX)
Attachment A: Municipal Fee Schedule Amendments for FY 2017 - Changed FeesCommunity Services Department
Fee Title Justification
Residents Non-Residents Residents Non-Residents Residents Non-Residents
Art Center - Auditorium $131.00 per hour $197.00 per hour $145.00 per hour $219.00 per hour 10.7%11.2%
Fee increase from $131.00 per hour to $145.00 per hour for Residents and from $197.00
per hour to $219.00 per hour for Non-Residents to align with market value based on new
A/V equipment in the Auditorium.
Art Center - Children's Clay
Studio $37.00 per hour $56.00 per hour $39.00 per hour $59.00 per hour 5.4%5.4%Fee increase from $37.00 per hour to $39.00 per hour for Residents and from $56.00 to
$59.00 per hour for Non-Residents to align with market value.
Art Center - Children's Outdoor
Classroom $85.00 per hour $128.00 per hour $89.00 per hour $133.00 per hour 4.7%3.9%Fee increase from $85.00 per hour to $89.00 per hour for Residents and from $128.00 to
$133.00 per hour for Non-Residents to align with market value.
Art Center - Historic Courtyard $85.00 per hour $128.00 per hour $89.00 per hour $133.00 per hour 4.7%3.9%Fee increase from $85.00 per hour to $89.00 per hour for Residents and from $128.00
per hour to $133.00 per hour for Non-Residents to align with market value.
Art Center - Kitchen/Pre-school $37.00 per hour $56.00 per hour $39.00 per hour $59.00 per hour 5.4%5.4%Fee increase from $37.00 per hour to $39.00 per hour for Residents and from $56.00 per
hour to $59.00 per hour for Non-Residents to align with market value.
Art Center - Lobby $85.00 per hour $128.00 per hour $89.00 per hour $133.00 per hour 4.7%3.9%Fee increase from $85.00 per hour to $89.00 per hour for Residents and from $128.00 to
$133.00 per hour for Non-Residents to align with market value.
Art Center - Meeting Room $85.00 per hour $128.00 per hour $89.00 per hour $133.00 per hour 4.7%3.9%Fee increase from $85.00 per hour to $89.00 per hour for Residents and from $128.00 to
$133.00 per hour for Non-Residents to align with market value.
Art Center - Project LOOK!
Studio $37.00 per hour $56.00 per hour $39.00 per hour $59.00 per hour 5.4%5.4%Fee increase from $37.00 per hour to $39.00 per hour for Residents and from $56.00 to
$59.00 per hour for Non-Residents to align with market value.
Art Center - Sculpture Garden $112.00 per hour $168.00 per hour $117.00 per hour $175.00 per hour 4.5%4.2%Fee increase from $112.00 per hour to $117.00 per hour for Residents and from $168.00
per hour to $175.00 per hour for Non-Residents to align with market value.
Art Center - Studio A $37.00 per hour $56.00 per hour $39.00 per hour $59.00 per hour 5.4%5.4%Fee increase from $37.00 per hour to $39.00 per hour for Residents and from $56.00 to
$59.00 per hour for Non-Residents to align with market value.
Art Center - Studio B $37.00 per hour $56.00 per hour $39.00 per hour $59.00 per hour 5.4%5.4%Fee increase from $37.00 per hour to $39.00 per hour for Residents and from $56.00 to
$59.00 per hour for Non-Residents to align with market value.
Arts Activities - Drop-in Activities $4.00 - $54.00 per
person
$4.00 - $54.00 per
person
$4.00 - $100.00 per
person
$4.00 - $100.00 per
person 85.2%85.2%
Fee range increase from $4.00 - $54.00 per person to $4.00 - $100.00 per person to
expand the range to charge quarterly for ceramic lab fees which used to be paid on a
hourly basis.•
Foothills Park - A. Oak Grove
Picnic 1 - 50 People $80.00 per group Not Available $75.00 per group Not Available -6.3%N/A Fee decrease from $80.00 per group to $75.00 per group for Residents to align with
market value.
Foothills Park - B. Oak Grove
Picnic 51 - 100 People $135.00 per group Not Available $149.00 per group Not Available 10.4%N/A Fee increase from $135.00 per group to $149.00 per group for Residents to align with
market value.
Foothills Park - C. Oak Grove
Picnic 101 - 150 People $180.00 per group Not Available $205.00 per group Not Available 13.9%N/A Fee increase from $180.00 per group to $205.00 per group for Residents to align with
market value.
General - Alma Plaza Community
Room $110.00 per hour $165.00 per hour $115.00 per hour $173.00 per hour 4.5%4.8%Fee increase from $110.00 per hour to $115.00 per hour for Residents and from $165.00
to $173.00 per hour for Non-Residents to align with market value.
General - Arastradero Gateway
Educational Facility $83.00 per hour Not Available $87.00 per hour Not Available 4.8%N/A Fee increase from $83.00 per hour to $87.00 per hour for Residents to align with market
value.
General - Baylands Nature
Interpretive Center Meeting
Room
$83.00 per hour $94.00 per hour $87.00 per hour $131.00 per hour 4.8%39.4%Fee increase from $83.00 per hour to $87.00 per hour for Residents and from $94.00 to
$131.00 per hour for Non-Residents to align with market value.
General - Chairs - Metal Folding $1.00 per chair $1.50 per chair $1.50 per chair $2.25 per chair 50.0%46.7%Fee increase from $1.00 per chair to $1.50 per chair for Residents and $1.50 per chair to
$2.25 per chair to align with market value.
2016 Adopted 2017 Proposed % Change
Attachment A: Municipal Fee Schedule Amendments for FY 2017 - Changed FeesCommunity Services Department
Fee Title Justification
Residents Non-Residents Residents Non-Residents Residents Non-Residents
General - Lawn Bowling Green's
Kitchen and Meeting Facility $110.00 per hour $165.00 per hour $115.00 per hour $173.00 per hour 4.5%4.8%Fee increase from $110.00 per hour to $115.00 per hour for Residents and from $165.00
to $173.00 per hour for Non-Residents to align with market value.
General - Peers Park, Mitchell
Park Field House $22.00 per hour Not Available $23.00 per hour Not Available 4.5%N/A Fee increase from $22.00 per hour to $23.00 per hour for Residents to align with market
value.
General - Picnic Reservations -
Arbor Group Site $43.00 per group Not Available $45.00 per group Not Available 4.7%N/A Fee increase from $43.00 per hour to $45.00 per hour for Residents to align with market
value.
General - Picnic Reservations -
East Meadow Group Site $65.00 per group Not Available $69.00 per group Not Available 6.2%N/A Fee increase from $65.00 per hour to $69.00 per hour for Residents to align with market
value.
General - Picnic Reservations -
Pine Grove Group Site $119.00 per group Not Available $125.00 per group Not Available 5.0%N/A Fee increase from $119.00 per hour to $125.00 per hour for Residents to align with
market value.
General - Picnic Reservations -
Redwood Group Site $97.00 per group Not Available $101.00 per group Not Available 4.1%N/A Fee increase from $97.00 per hour to $101.00 per hour for Residents to align with market
value.
General - Picnic Reservations -
Sequoia Group Site $54.00 per group Not Available $57.00 per group Not Available 5.6%N/A Fee increase from $54.00 per hour to $57.00 per hour for Residents to align with market
value.
General - Picnic Reservations (1 -
15 people)$15.00 per group $19.00 per group $17.00 per group $21.00 per group 13.3%10.5%Fee increase from $15.00 per hour to $17.00 per hour for Residents and from $19.00 to
$21.00 per hour for Non-Residents to align with market value.
General - Portable Public
Address System $12.00 per use $18.00 per use $15.00 per use $21.00 per use 25.0%16.7%Fee increase from $12.00 per use to $15.00 per use for Residents and from $18.00 per
use to $21.00 per use for Non-Residents to align with market value.
General - Tables - 6' Round $6.00 per table $9.00 per table $9.00 per table $11.00 per table 50.0%22.2%Fee increase from $6.00 per table to $9.00 per table for Residents and $9.00 per table to
$11.00 per table to align with market value.
Junior Museum & Zoo - JMZ -
Group Admission
$55.00-$135.00 per
group Fee plus up to 50%$5.00 per child $5.00 per child N/A N/A Changing the fee structure from a group rate to an individual child rate to align with how
we charge the fee.
Junior Museum & Zoo - JMZ -
Science Child and Family
Programs
$57.00-$1,120 per
unit Fee plus up to 50%$28.00 - $379.00 per
program Fee plus up to 50%N/A N/A Changing the fee structure from unit based to individual program based to align with how
customer purchase programs.
Junior Museum & Zoo - JMZ -
Science School and Group
Programs
$1,120.00-
$56,021.00 per
program
Fee plus up to 50%$129.00 - $340.00
per program Fee plus up to 50%N/A N/A Changing the fee structure from a unit to per program basis since most schools purchase
individual programs.
Junior Museum & Zoo - Exhibit
Hall $216.00 per hour $324.00 per hour $227.00 per hour $341.00 per hour 5.1%5.2%Fee increase from $216.00 per hour to $227.00 per hour for Residents and from $324.00
to $341.00 per hour for Non-Residents to align with market value.
Junior Museum & Zoo - Other
Rooms $60.00 per hour $90.00 per hour $63.00 per hour $95.00 per hour 5.0%5.6%Fee increase from $60.00 per hour to $63.00 per hour for Residents and from $90.00 to
$95.00 per hour for Non-Residents to align with market value.
Junior Museum & Zoo - Package
Rental - All Available Space $540.00 per hour $810 per hour $567.00 per hour $851.00 per hour 5.0%5.1%Fee increase from $540.00 per hour to $567.00 per hour for Residents and from $810.00
to $851.00 per hour for Non-Residents to align with market value.
Junior Museum & Zoo - Science
Lab 1 $92.00 per hour $138.00 per hour $97.00 per hour $145.00 per hour 5.4%5.1%Fee increase from $92.00 per hour to $97.00 per hour for Residents and from $138.00 to
$145.00 per hour for Non-Residents to align with market value.
2016 Adopted 2017 Proposed % Change
Attachment A: Municipal Fee Schedule Amendments for FY 2017 - Changed FeesCommunity Services Department
Fee Title Justification
Residents Non-Residents Residents Non-Residents Residents Non-Residents
Junior Museum & Zoo - Science
Lab 2 $60.00 per hour $90.00 per hour $63.00 per hour $95.00 per hour 5.0%5.6%Fee increase from $60.00 per hour to $63.00 per hour for Residents and from $90.00 to
$95.00 per hour for Non-Residents to align with market value.
Junior Museum & Zoo - Zoo $216.00 per hour $324.00 per hour $227.00 per hour $341.00 per hour 5.1%5.2%Fee increase from $216.00 per hour to $227.00 per hour for Residents and from $324.00
to $341.00 per hour for Non-Residents to align with market value.
Lucie Stern Community Center -
Ballroom (Room S)$167.00 per hour $249.00 per hour $175.00 per hour $263.00 per hour 4.8%5.6%Fee increase from $167.00 per hour to $175.00 per hour for Residents and from $249.00
to $263.00 per hour for Non-Residents to align with market value.
Lucie Stern Community Center -
Community Room (Room R)$125.00 per hour $185.00 per hour $131.00 per hour $197.00 per hour 4.8%6.5%Fee increase from $125.00 per hour to $131.00 per hour for Residents and from $185.00
to $197.00 per hour for Non-Residents to align with market value.
Lucie Stern Community Center -
Fireside Room (Room D)$95.00 per hour $145.00 per hour $99.00 per hour $149.00 per hour 4.2%2.8%Fee increase from $95.00 per hour to $99.00 per hour for Residents and from $145.00 to
$149.00 per hour for Non-Residents to align with market value.
Lucie Stern Community Center -
Kitchen $35.00 per hour $55.00 per hour $37.00 per hour $55.00 per hour 5.7%0.0%Fee increase from $35.00 per hour to $37.00 per hour for Residents to align with market
value.
Lucie Stern Community Center -
Package Rental - Community
Room
$149.00 per hour $229.00 per hour $157.00 per hour $235.00 per hour 5.4%2.6%Fee increase from $149.00 per hour to $157.00 per hour for Residents and from $229.00
to $235.00 per hour for Non-Residents to align with market value.
Lucie Stern Community Center -
Package Rental - Exclusive Use $330.00 per hour $495.00 per hour $347.00 per hour $521.00 per hour 5.2%5.3%Fee increase from $330.00 per hour to $347.00 per hour for Residents and from $495.00
to $521.00 per hour for Non-Residents to align with market value.
Lucie Stern Community Center -
Package Rental - Fireside Room $129.00 per hour $189.00 per hour $135.00 per hour $203.00 per hour 4.7%7.4%Fee increase from $129.00 per hour to $135.00 per hour for Residents and from $189.00
to $203.00 per hour for Non-Residents to align with market value.
Lucie Stern Community Center -
Package Rental - Weddings (Sat $360.00 per hour $545.00 per hour $379.00 per hour $569.00 per hour 5.3%4.4%Fee increase from $360.00 per hour to $379.00 per hour for Residents and from $545.00
to $569.00 per hour for Non-Residents to align with market value.
Lucie Stern Community Center -
Patio $90.00 per hour $135.00 per hour $95.00 per hour $143.00 per hour 5.6%5.9%Fee increase from $90.00 per hour to $95.00 per hour for Residents and from $135.00 to
$143.00 per hour for Non-Residents to align with market value.
Mitchell Park Community Center
- Adobe North Tech Lab $104.00 per hour $156.00 per hour $109.00 per hour $163.00 per hour 4.8%4.5%Fee increase from $104.00 per hour to $109.00 per hour for Residents and from $156.00
to $163.00 per hour for Non-Residents to align with market value.
Mitchell Park Community Center
- Adobe South or Matadero
Room
$82.00 per hour $123.00 per hour $87.00 per hour $131.00 per hour 6.1%6.5%Fee increase from $82.00 per hour to $87.00 per hour for Residents and from $123.00 to
$131.00 per hour for Non-Residents to align with market value.
Mitchell Park Community Center
- El Palo Alto East or West On $104.00 per hour $156.00 per hour $109.00 per hour $163.00 per hour 4.8%4.5%Fee increase from $104.00 per hour to $109.00 per hour for Residents and from $156.00
to $163.00per hour for Non-Residents to align with market value.
Mitchell Park Community Center
- El Palo Alto Room (Ballroom)$208.00 per hour $312.00 per hour $219.00 per hour $329.00 per hour 5.3%5.4%Fee increase from $208.00 per hour to $219.00 per hour for Residents and from $312.00
to $329.00 per hour for Non-Residents to align with market value.
Mitchell Park Community Center
- Kitchen $60.00 per hour $90.00 per hour $63.00 per hour $95.00 per hour 5.0%5.6%Fee increase from $60.00 per hour to $63.00 per hour for Residents and from $90.00 to
$95.00 per hour for Non-Residents to align with market value.
Mitchell Park Community Center
- Package Rental - Adobe North $177.00 per hour $265.00 per hour $185.00 per hour $277.00 per hour 4.5%4.5%Fee increase from $177.00 per hour to $185.00 per hour for Residents and from $265.00
to $277.00 per hour for Non-Residents to align with market value.
Mitchell Park Community Center
- Package Rental - Birthday
Package
$208.00 per hour $312.00 per hour $219.00 per hour $329.00 per hour 5.3%5.4%Fee increase from $208.00 per hour to $219.00 per hour for Residents and from $312.00
to $329.00 per hour for Non-Residents to align with market value.
2016 Adopted 2017 Proposed % Change
Attachment A: Municipal Fee Schedule Amendments for FY 2017 - Changed FeesCommunity Services Department
Fee Title Justification
Residents Non-Residents Residents Non-Residents Residents Non-Residents
Mitchell Park Community Center
- Package Rental - El Palo Alt $254.00 per hour $381.00 per hour $267.00 per hour $401.00 per hour 5.1%5.2%Fee increase from $254.00 per hour to $267.00 per hour for Residents and from $381.00
to $401.00 per hour for Non-Residents to align with market value.
Mitchell Park Community Center
- Package Rental - Exclusive U $473.00 per hour $709.00 per hour $497.00 per hour $745.00 per hour 5.1%5.1%Fee increase from $473.00 per hour to $497.00 per hour for Residents and from $709.00
to $745.00 per hour for Non-Residents to align with market value.
Mitchell Park Community Center
- Package Rental - Weddings
(Saturday and Sunday)
$498.00 per hour $747.00 per hour $523.00 per hour $785.00 per hour 5.0%5.1%Fee increase from $498.00 per hour to $523.00 per hour for Residents and from $747.00
to $785.00 per hour for Non-Residents to align with market value.
Fee Title Justification
Basic Rate Non-Profit Rate Basic Rate Non-Profit Rate Basic Rate Non-Profit Rate
Cubberley Community Center -
K. Additional Performance $355.00 each $249.00 each $350.00 each $245.00 each -1.4%-1.6%
Fee decrease from $355.00 each to $350.00 each for the basic rate and $249.00 each to
$245.00 each for the Non-Profit Rate as we are splitting the difference between the
additional package fee and the basic add on fee.
Fee Title Justification
Regular Time Overtime & Holiday Regular Time Overtime & Holiday Regular Time
Overtime &
Holiday
Cubberley Community Center -
Theatre Technician $34.00 per hour $51.00 per hour $35.00 per hour $53.00 per hour 2.9%3.9%Fee increase from $34.00 per hour to $35.00 per hour for Regular Time and from $51.00
per hour to $53.00 per hour for Overtime and Holiday Pay for staffing cost increase.
General - Custodial Services $33.00 per hour $50.00 per hour $35.00 per hour $53.00 per hour 6.1%6.0%
Fee increase from $33.00 per hour to $35.00 per hour for Regular Hours and $50.00 per
hour to $53.00 per hour for Overtime & Holiday Hours to align with market value and
increase personal cost.
General - Facility Attendant
and/or Assistant $31.00 per hour $47.00 per hour $33.00 per hour $49.00 per hour 6.5%4.3%
Fee increase from $31.00 per hour to $33.00 per hour for Regular Hours and $47.00 per
hour to $49.00 per hour for Overtime & Holiday Hours to align with market value and
increase personal cost.
General - Lifeguard $21.00 per hour $32.00 per hour $23.00 per hour $35.00 per hour 9.5%9.4%
Fee increase from $21.00 per hour to $23.00 per hour for Regular Hours and $32.00 per
hour to $35.00 per hour for Overtime & Holiday Hours to align with market value and
increase personal cost.
General - Palo Alto Junior
Museum & Zoo Attendant $29.00 per hour $44.00 per hour $31.00 per hour $47.00 per hour 6.9%6.8%
Fee increase from $29.00 per hour to $31.00 per hour for Regular Hours and $44.00 per
hour to $47.00 per hour for Overtime & Holiday Hours to align with market value and
increase personal cost.
General - Park Ranger $61.00 per hour Not Available $75.00 per hour Not Available 23.0%N/A Fee increase from $61.00 per hour to $75.00 per hour for Residents to align with market
value and increase personal cost.
Fee Title Justification
Cubberley Community Center -
Exclusive Storage Space (As
Available)
Fee increase from $1.00 per sq. ft. per month to $1.50 per sq. ft. per month to align with
market value.
Golf - C. Large Bucket Changes range from $10.00 - $14.00 to $10.00 - $12.00 as the large and jumbo bucket
fees we reversed.
Golf - D. Jumbo Bucket Changes range from $10.00 - $12.00 to $10.00 - $14.00 as the large and jumbo bucket
fees we reversed.
Park Activities - Open Space &
Parks Special Use Permit
Changing fee range from $324.00 - $2,163.00 to $300.00 - $2,163.00 to accommodate
smaller group, 1-150 people, Special Use Permits that occur on the fields/grass areas.
50.0%$1.50 per sq. ft. per month$1.00 per sq. ft. per month
$10.00 - $14.00 per bucket
$10.00 - $12.00 per bucket
$324.00 - $2,163.00 each $300.00 - $2,163.00 each
2016 Adopted 2017 Proposed
2016 Adopted 2017 Proposed
2016 Adopted 2017 Proposed % Change
% Change
% Change
16.7%
-14.3%$10.00 - $12.00 per bucket
$10.00 - $14.00 per bucket
-7.4%
2016 Adopted 2017 Proposed % Change
Attachment A: Municipal Fee Schedule Amendments for FY 2017 - Changed FeesDevelopment Services - Public Works Division
Fee Title Justification
Director's Approval - Protected
Tree Removal
Fee increased from $280.00 to $353.00 per removal to meet Council Cost-recovery
directive
Engineering - A. 101 - 1,000
cubic yards
Base fee reduced from $148.00 to $139.00 for first 100 cubic yards to adjust for actual
costs and meet Council cost-recovery directive
Engineering - B. 1,001 - 10,000
cubic yards
Base fee reduced from $1,480.00 to $1,390.00 for first 1,000 cubic yards to adjust for
actual costs and meet Council cost-recovery directive
Engineering - C. 10,000+ cubic
yards
Base fee reduced from $2,960.00 to $2,680.00 for first 10,000 cubic yards to adjust for
actual costs and meet Council cost-recovery directive
Inspection Fees - Tree Inspection
for Private Development
Fee changed from $243.00 for two inspections (1 each pre & post construction) to
$210.00 per inspection to adjust for actual costs and meet Council cost-recovery directive
Storm Water - Stormwater
Treatment Feature Operations
and Maintenance Inspection
(Fmr. Storm Drain Inspection
Fee)
Fee increased from $436.00 to 551.00 per inspection to meet Council Cost-recovery
directive, name changed from Storm Drain Inspection Fee to Stormwater Treatment
Operations and Maintenance Inspection
Storm Water - Storm Drain Plan
Check Fee
Fee increased from $476.00 per project to $595.00 per project. Staff proposes to increase
the fee by 25% annually for six years until cost recovery is met.
$436.00 per inspection (up to 4 hours) plus
$82.00 per hour thereafter
$551.00 per inspection (up to 4 hours) plus
$82.00 per hour thereafter
$280.00 plus applicable Other Application
fees
$243.00 per inspection $210.00 per inspection
$353.00 plus applicable Other Application
fees
$1,480.00 for the first 1,000 cubic yards,
plus $148.00 for each additional 1,000 cubic
$2,960 for the first 10,000 cubic yards, plus
$148.00 for each additional 10,000 cubic
$1,390.00 for the first 100 cubic yards, plus
$118.00 for each additional 1,000 cubic yards
$2,680.00 for the first 10,000 cubic yards,
plus $517.00 for each additional 10,000 cubic
$595.00 per project
2016 Adopted 2017 Proposed
-6.1%
-6.1%
-9.5%
$148.00 for the first 100 cubic yards, plus
$148.00 for each additional 100 cubic yards
$139.00 for the first 100 cubic yards, plus
$139.00 for each additional 100 cubic yard or
$476.00 per project
% Change
-13.6%
26.4%
25.0%
26.1%
Attachment A: Municipal Fee Schedule Amendments for FY 2017 - Changed FeesPublic Works Department
Fee Title Justification
Encroachment Permit -
Dumpster Container Fee increased from $168.00 each to $210.00 each to meet Council cost-recovery directive
Encroachment Permit - Fence Fee increased from $191.00 to $1496.00 each to meet Council cost-recovery directive
Encroachment Permit - Non-
Residential Single-Day
Fee increased from $236.00 to $862.00 per project to adjust for actual costs and meet
Council cost-recovery directive
Encroachment Permit - Non-
Residential Long-Term (More
than 5 days)
Fee increased from $1,009.00 to $1,418.00 per project to adjust for actual costs and meet
Council cost-recovery directive
Encroachment Permit - Non-
Residential Short-Term (Less
than 5 days)
Fee increased from $504.00 to $1,014.00 to adjust for actual costs and meet Council cost-
recovery directive
Encroachment Permit -
Residential
Fee increased from $501.00 each to $721.00 to adjust for actual costs and meet Council
cost-recovery directive
Inspection Fees - Off Hour
Inspection Fee increased from $209.00 to $230.00 to meet Council Cost-recovery directive
Operations - Tree Removal Fee increased from $100.00 to 112.00 to meet Council Cost-recovery directive
Permit Fees - A. Construction in
Public Right of Way ($1.00 -
$5,999)
Note: Including public or private
subdivision streets
Base fee increased from $285.00 to $503.00 to adjust for actual costs and meet Council
cost-recovery directive
Permit Fees - B. Construction in
Public Right of Way ($6,000 -
$25,999)
Note: Including public or private
subdivision streets
Base fee increased from $285.00 to $503.00 to adjust for actual costs and meet Council
cost-recovery directive
Permit Fees - C. Construction in
Public Right of Way ($26,000 -
$100,999)
Note: Including public or private
subdivision streets
Base fee increased from $912.00 to $1,743.00 to adjust for actual costs and meet Council
cost-recovery directive
Permit Fees - D. Construction in
Public Right of Way ($101,000+)
Note: Including public or private
subdivision streets
Base fee increased from $4,745.00 to $7,368.00 to adjust for actual costs and meet
Council cost-recovery directive
Permit Fees - E. Certificate of
Compliance/Certificate of
Correction/Map Amendment
Note: Including public or private
subdivision streets
Fee increased from $3,290.00 to $4,216.00 to meet Council Cost-recovery directive
Street Cut Fees - Pavement
Condition - Excellent Fee increased from $18.00 to $22.00 to meet Council cost-recovery directive
Street Cut Fees - Pavement
Condition - Fair Fee increased from $10.00 to $13.00 to meet Council cost-recovery directive
Street Cut Fees - Pavement
Condition - Good Fee increased from $13.00 to $16.00 to meet Council cost-recovery directive
Street Cut Fees - Pavement
Condition - Poor Fee increased from $9.00 to $10.00 to meet Council cost-recovery directive
Street Cut Fees - Service Lateral
Connection Fee increased from $1113.00 to $1350.00 to meet Council cost-recovery directive
$13.00 per square foot
$9.00 per square foot
$1,113 each
$16.00 per square foot
$13.00 per square foot
$10.00 per square foot
$1,350 each
$168.00 each
$191.00 each
$236.00 each
$1,009.00 each
$504.00 each
$10.00 per square foot
$501.00 each
$209.00 per hour
$18.00 per square foot
$285.00 per occurrence
$285.00 + 3.9% of value greater than $6,000
$912.00 + 4.4% of value greater than
$26,000.00
$4,745 + 3.0% of value greater than
$100,000.00
$3,290.00 per occurrence
$100.00 per inch of damage plus planting
installation
$22.00 per square foot
$210.00 each
2017 Proposed
25.0%
683.2%
$1,014.00 each
2016 Adopted
$230.00 per hour
$503.00 per occurrence
$503.00 + 6.2% of value greater than $6,000
$1,743 + 7.5% of value greater than
$26,000.00
$7,368 + 6.4% of value greater than
$100,000.00
$4,216.00 per occurrence
$112.00 per inch of damage plus planting
installation
% Change
$1,496.00 each
$862.00 each
$1,418.00 each
$721.00 each
22.2%
12.0%
30.0%
23.1%
11.1%
21.3%
265.3%
40.5%
28.1%
101.2%
43.9%
10.0%
76.5%
76.5%
91.1%
55.3%
Attachment A: Municipal Fee Schedule Amendments for FY 2017 - Changed FeesPublic Works Department
Fee Title Justification
Storm Drain - Flood Zone
Determination Letter
Fee increased from $69.00 per letter to $106.00 per letter to meet Council cost-recovery
directive
Storm Drain - Temporary
Discharge to Storm Drain from
Construction Site Dewatering
Fee increased from $167.00 per request to discharge to $2,903.00 per request to
discharge to adjust for actual costs and meet Council cost-recovery directive. A new fee
was added, as discussed in the body of the CMR, to separately cover the weekly cost of
discharge.
Storm Drain - Temporary
Elevation Benchmarks Fee increased from $314.00 to $365.00 to meet Council cost-recovery directive
Fee Title Justification
Regular Time Overtime & Holiday Regular Time Overtime & Holiday Regular Time
Overtime &
Holiday
Operations - Construction and
Repair $107.00 per hour $161.00 per hour $125.00 per hour $185.00 per hour 16.8%14.9%Fee increased from $107.00 per hour to $125.00 per hour for regular time and $161.00
per hour to $185.00 per hour for overtime to meet Council cost-recovery directive
Operations - Supervision $128.00 per hour $192.00 per hour $139.00 per hour $207.00 per hour 8.6%7.8%Fee increased from $128.00 per hour to $139.00 per hour for regular time and $192.00
per hour to $207.00 per hour for overtime to meet Council cost-recovery directive
Operations - Sweeping Services $89.00 per hour $134.00 per hour $112.00 per hour $167.00 per hour 25.8%24.6%Fee increased from $89.00 per hour to $112.00 per hour for regular time and $134.00 per
hour to $167.00 per hour for overtime to meet Council cost-recovery directive
Operations - Traffic
Control/Graffiti Services $87.00 per hour $131.00 per hour $91.00 per hour $137.00 per hour 4.6%4.6%Fee increased from $87.00 per hour to $91.00 per hour for regular time and $131.00 per
hour to $137.00 per hour for overtime to meet Council cost-recovery directive
Operations - Tree Services $103.00 per hour $155.00 per hour $117.00 per hour $137.00 per hour 13.6%-11.6%Fee increased from $103.00 per hour to $117.00 per hour for regular time and $155.00
per hour to $174.00 per hour for overtime to meet Council Cost-recovery directive
Fee Title Justification
Per load of
1,000 gal. or Less
Each Additional
500 gal.
Per load of
1,000 gal. or Less
Each Additional
500 gal.
Per load of
1,000 gal. or
Less
Each Additional
500 gal.
Wastewater Treatment - Grease
Waste Disposal
$110.00 per load of
1,000 gal. or less
$56.00 each
Additional 500 gal.
$121.00 per load of
1,000 gal. or less
$61.60 each Additional
500 gal.10.0%8.9%Fee increased 10% to get closer to Council cost-recovery directive and lower subsidy from
RWQCP partners
Wastewater Treatment - Septic
Tank Waste and Portable Toilet
Pumping Disposal
$67.00 per load of
1,000 gal. or less
$31.00 each
Additional 500 gal.
$73.00 per Load of
1,000 gal. or less
$34.00 each Additional
500 gal.9.0%9.7%Fee increased 10% to get closer to Council cost-recovery directive and lower subsidy from
RWQCP partners
1638.3%
16.2%
$167.00 per request to discharge plus
$82.00 per month of discharge
$314.00 per benchmark
$2,903.00 per request to discharge
$365.00 per benchmark
2016 Adopted 2017 Proposed
2016 Adopted 2017 Proposed
% Change
% Change
% Change
53.6%$69.00 per letter $106.00 per letter
2016 Adopted 2017 Proposed
Attachment A: Municipal Fee Schedule Amendments for FY 2017 - Changed FeesPolice Department
Fee Title Justification
Licenses - Massage
Establishment - Renewal
Staff time estimate increased to include inspection time. Fee adjusted to conform to cost
recovery range.
Licenses - Massage
Establishment - Sole Proprietor
(New)
Staff time estimate increased to include inspection time. Fee adjusted to conform to cost
recovery range.
Licenses - Massage
Establishment - Sole Proprietor
(Renewal)
Staff time estimate increased to include inspection time. Fee adjusted to conform to cost
recovery range.
Licenses - Massage
Establishment - Non-Certified
(New)
Staff time estimate increased to include inspection time. Fee adjusted to conform to cost
recovery range.
Licenses - Massage
Establishment - Non-Certified
(Renewal)
Staff time estimate increased to include inspection time. Fee adjusted to conform to cost
recovery range.
Licenses - Taxicab - Driver Note:
Does not include DOJ Fingerprint and
Rolling Processing Fee
Unit of measure clarified that fee is charged $40 annually or up to $160 for a four year
permit. Fee amount also adjust to come into conformance with cost recovery range.
Licenses - Taxicab - Master
License (New)
Previous staff cost estimate did not properly account for hearing officer, risk manager and
city attorney time.
Licenses - Taxicab - Transfer Fee
Previous staff time calculation did not account for appointment related administrative
tasks such as scheduling, filing, and recording permits. Fee amount adjusted to conform
with cost recovery range.
Licenses - Taxicab - Vehicle
Inspection for Each Vehicle
Previous fee calculation did not account for appointment related administrative tasks
such as scheduling, filing, and recording permits. and recording new permit. Fee amount
adjusted to conform with cost recovery range.
Licenses - Secondhand Dealer -
New
The California Department of Justice has discontinued accepting new Secondhand
Dealer/Pawnbroker License applications and has shifted this responsibility entirely to local
law enforcement agencies. The local agency is required to accept and remit the license
payment to the state after it has processed the application. Fee change reflects staff costs
to process permit.
Licenses - Secondhand Dealer -
DOJ -New
The California Department of Justice has discontinued accepting new Secondhand
Dealer/Pawnbroker License applications and has shifted this responsibility entirely to local
law enforcement agencies. The local agency is required to accept and remit the license
payment to the state after it has processed the application. Fee reflects only California
Department of Justice costs.
Miscellaneous - Helicopter
Landing Fee
Staff time estimate increased to more accurately reflect time to review and process
permit.
False Alarm - Alarm Registration
Fee - New Staff time estimate revised to include additional administrative time.
False Alarm - Alarm Registration
Fee - Renewal Staff time estimate revised to include additional administrative time.
Special Fees - Subpoena Fee Fee updated to separate subpoena fee and offsite document recovery charge, which is
now its own Fee as detailed in the body of the CMR.
$100.00 per year $150.00 per year
$150.00 per year $317.00 per year
$100.00 per year $150.00 per year
2016 Adopted 2017 Proposed
$100.00 per year $150.00 per year
$150.00 per year $200.00 per year
50.0%
111.3%
50.0%
66.7%
63.6%
42.9%
76.5%
50.0%
33.3%
$2,400 per year
$50.00 each
$60.00 per year
% Change
$25.00 each
$18.00 each
$24.00 per hour plus $12.00 per box offsite
recovery
$24.00 per year up to 4 years $40.00 per year up to 4 years
60.0%
122.2%
0.0%
$50.00 per occurrence
$40.00 each
$40.00 each
$24.00 per hour
$300.00 per application
$300.00 per application
$1,467.00 per year
$35.00 each
$34.00 per year
$25.00 per occurrence
This fee was incorporated into the municipal
fee schedule outside of the adopted budget
process.
This fee was incorporated into the municipal
fee schedule outside of the adopted budget
process.
N/A
N/A
100.0%
Attachment A: Municipal Fee Schedule Amendments for FY 2017 -Changed Fees
Development Services -Public Works Division
Fee Title ~ <~"';> '1-~ ' 2016 Adopted 2017 Proposed %Change ustlflcation -
Director's Approval -Protected $280.00 plus applicable Other Application $353.00 plus applicable Other Application 26.1% Fee increased from $280.00 to $353.00 per removal to meet Council Cost-recovery
Tree Removal fees fees directive
Engineering -A. 101 -1,000 $148.00 for the first 100 cubic yards, plus $139.00 for the first 100 cubic yard;, plus Base fee reduced from $148.00 to $139.00 for first 100 cubic yards to adjust for actual $148.00 for each additional 100 cubic yards $139.00 for each additional 100 cubic yard -6.1% cubic yards or fraction thereof or fraction thereof costs and meet Council cost-recovery directive
Engineering -B. 1,001-10,000 $1,480.00 for the first 1,000 cubic yards, $1,390.00 for the first 1,000 cubic yards, plu Base fee reduced from $1,480.00 to $1,390.00 for first 1,000 cubic yards to adjust for plus $148.00 for each additional 1,000 cubi $129.00 for each additional 1,000 cubic -6.1% cubic yards yards or fraction thereof yards or fraction thereof actual costs and meet Council cost-recovery directive
Engineering -C. 10,000+ cubic $2,960 for the first 10,000 cubic yards, plus $2,680.00 for the first 10,000 cubic yards, Base fee reduced from $2,960.00 to $2,680.00 for first 10,000 cubic yards to adjust for $148.00 for each additional 10,000 cubic plus $517.00 for each additional 10,000 -9.5% yards yards or fraction thereof cubic yards or fraction thereof actual costs and meet Council cost-recovery directive
Inspection Fees -Tree Fee changed from $243.00 for two inspections (1 each pre & post construction} to
Inspection for Private $243.00 per inspection $210.00 per inspection -13.6% $210.00 per inspection to adjust for actual costs and meet Council cost-recovery
Development directive
Storm Water -Stormwater
Treatment Feature Operations $436.00 per inspection (up to 4 hours) plus $551.00 per inspection (up to 4 hours) plus Fee increased from $436.00 to 551.00 per inspection to meet Council Cost-recovery
and Maintenance Inspection $82.00 per hour thereafter $82.00 per hour thereafter 26.4% directive, name changed from Storm Drain Inspection Fee to Stormwater Treatment
(Fmr. Storm Drain Inspection Operations and Maintenance Inspection
Fee)
Storm Water -Storm Drain Plan $476.00 per project $S95.00 per project 25.0% Fee increased from $476.00 per project to $595.00 per project. Staff proposes to
Check Fee increase the fee by 25% annually for six years until cost recovery is met.
City of Palo Alto (ID # 6887)
Finance Committee Staff Report
Report Type: Action Items Meeting Date: 5/12/2016
City of Palo Alto Page 1
Summary Title: Contract For On-Site Fleet Parts And Inventory Program
Title: Approval of Staff Recommendation for a Three Year Pilot Contract for
an On-site Fleet Parts and Inventory Program With Genuine Parts Company
for an Estimated Annual Cost of $171,000
From: City Manager
Lead Department: Public Works
Recommendation
Staff recommends that Finance Committee recommend to City Council a three-
year pilot with Genuine Parts Company (Napa)to provide on-site fleet parts and
inventory services, including contract staff to procure and manage the auto
parts/supplies inventory.
Background
To maintain the approximately 580 vehicles/equipment fleet, staff time spent
procuring, receiving, billing and tracking parts/supplies was equal to
approximately $283k in Fiscal Year 2015.Fleet relies on more than 60 vendors for
parts/supplies,requiring numerous Fleet and Purchasing staff-hours to establish
purchase contracts for access to the variety of vendors needed.
Prior to 2014,Fleet operated on an outdated version of AssetWorks, which was
not efficient in tracking and managing the parts/supplies inventory. Due to the
outdated software capabilities, lack of staff time dedicated to inventory
management and the City’s aging fleet, the City has accumulated unusable parts
and discrepancies in the inventory.
Additionally, the Fleet Services Coordinator, the sole staff person to oversee parts
operations on a full-time basis for over 17 years, will be retiring from the City in
May 2016. This presents an appropriate time to consider alternative services.
City of Palo Alto Page 2
Napa has been in contract with the City of Sacramento for on-site fleet parts and
inventory services, including contract staff to procure and manage the auto
parts/supplies inventory since 2009. Staff visited the City of Sacramento, with a
fleet of approximately 2,800 vehicles/equipment and multiple service locations,
to tour the facility and learn from the fleet manager’s experience with Napa. The
fleet manager described the City of Sacramento’s parts inventory management
prior to outsourcing as lacking in the same areas as the City of Palo Alto and
reported after contracting with Napa they saw annual cost savings, an increase in
shop productivity as parts were readily available and a reduction in equipment
downtime. Sacramento’s fleet manager conveyed Sacramento’s satisfaction with
Napa and their excellent quality of service provided.
Discussion
Inventory Management
Fleet staff recognized the challenges of maintaining the fleet parts/supplies
inventory and began investigating the option of outsourcing its parts operations
in early 2015. This three-year pilot offers an opportunity for staff to explore
eliminating inventory ownership and the need for staff to manage inventory.In
this pilot, inventory will be reduced an estimated $183k in the first year,assuming
70%of the inventory is non-obsolete. Napa will purchase this portion of current
inventory and assist in addressing the remaining 30%surplus and obsolete
inventory to ensure the City recovers the maximum possible value. The
elimination of time and costs associated with owning inventory and inventory
management, shrinkage, and obsolescence will allow staff to focus on maintaining
vehicles and equipment, meeting regulatory demands, replacing vehicles in a
timely manner and managing vendor contracts outside of parts/supplies.
Procurement
Fleet and Purchasing staff time will be reduced and administrative costs lowered
as fewer purchase orders, receipts, invoices and accounts payables will need to be
processed. Napa will utilize the purchasing contracts they have in place,
becoming the sole parts/supplies vendor. Napa’s TAMS parts management
software fully integrates with AssetWorks software,allowing contract staff to
issue parts directly to work orders, handle all paperwork reconciliation and pay
vendors directly. In turn, Napa will bill the City monthly for all parts/supplies
purchased.
City of Palo Alto Page 3
Upon entering into contract with Napa, it is the City’s intent to temporarily freeze
one Fleet Services Coordinator position and eliminate one hourly Stock Clerk
position,resulting in salary savings of approximately $135k annually. At the end
of the pilot’s first year, staffing needs will be evaluated to determine if the Fleet
Services Coordinator position should be reclassified or could be eliminated. A
cost analysis will be conducted annually for the term of the pilot to determine
cost savings in parts/supplies and in salaries and benefits.
Bid Process
The City’s Municipal code, PAMC section 2.30.360 (j) identifies the process that
allows the use of intergovernmental cooperative purchasing agreements. Bids for
this purchase were obtained through the approved cooperative group, National
Joint Purchasing Alliance (Attachment A). A Request for Quotation (RFQ) was sent
to National Joint Powers Alliance and a proposal was received February 3, 2016
from Napa (Attachment B).
Staff recommends that Finance Committee recommend this pilot with Napa to
City Council for approval to provide on-site fleet parts and inventory services,
including contract personnel to procure and manage the auto parts/supplies
inventory (Attachment C).
Resource Impact
This is the first attempt to contract with a vendor for parts operations. In Fiscal
Year 2015 staff costs to operate the parts/supplies section of fleet was
approximately $283k. The contract with Napa will provide the same services for
$171k annually.Although Napa charges a 10%markup on all parts/supplies, it is
anticipated that their purchase power and multiple vendor contracts will benefit
the City via lower parts costs.
Policy Implications
The approval of this recommendation to retain the services of Napa is consistent
with existing City Policies, including approval from the Fleet Review Committee
(FRC) on December 17, 2015.Authorization of this contract does not present any
change to the existing policy.
Environmental Review
The proposed contract is not a project subject to environmental review.
City of Palo Alto Page 4
Attachments:
·Attachment A -Operating Expense Quote (XLS)
·Attachment B -Proposal (PDF)
·Attachment C -Sample Contract (DOC)
·Attachment D -NJPA Acceptance and Award (PDF)
Location: Palo Alto Option B - 2 Employees Estimated Operating Expenses
Monthly % to Annual % to
Projection Performa SALES Performa SALES
PURCHASES 44,821 537,854 Parts Bill For Customer
Less Cost of Sales 40,339 90.00%484,069 90.00%
Sales Less Cost 0 0.00%0.00%
Less Handling Chrg 0 0.00%0.00%
GROSS PROFIT 4,482 10.00% 53,785 10.00%
Advertising 0 0.00%0.00%
Net Salaries 0 0.00%0.00%
Travel 0 0.00%0.00%
Sales - Misc.0 0.00%0 0.00%
G.M. Travel 0 0.00%0.00%
TOTAL SALES EXP.0 0.00%0 0.00%
SALARIES - EXEC.448 1.00%5,376 1.00%
PAYROLL - Acct. 453 1.01% 5,432 1.01%Fixed Expense @ 1.01% of sales, Accounting & Data Processing Fee
-General Office 221 0.49% 2,646 0.49%Fixed Expense @ .49% of sales
-Counter - J. S.8,667 19.34%104,000 19.34%1 Store Manager, 1 parts clerk
-Delivery 0 0.00%0 0.00%
TOTAL PAYROLL 9,340 20.84%112,079 20.84%
Bad Debts 0 0.00%0.00%
data proc 0 0.00%0.00%
Delivery - Ins 0 0.00%0 0.00%Delivery Trucks, Insurance Premium
Maintenance 0 0.00%0 0.00%Vehicle Repairs, Fuel
Truck Deprec.0 0.00%0 0.00%Delivery Trucks with a Lease/Depreciation Payment
Dep- F. & F.0 0.00%0.00%
Empl. Ben. - Pen.450 1.00% 5,400 1.00%Fixed Expense @ 1% of sales
-Other 1,020 2.28%12,240 2.28%Mainly Group Insurance Premiums
Freight & Postage 200 0.45%0 0.00%Freight Charges Incurred by this Operation.
Insurance 900 2.01%10,800 2.01%Insurance - General and Worker's Comp
Interest 0 0.00%0.00%
Legal & Pro.0 0.00%0.00%
L.H.&W.0 0.00%0.00%
Rent 0 0.00%0 0.00%
Sta. & Shipping 0 0.00%0 0.00%Stationary / Shipping Supplies
Stock Loss 0 0.00%0 0.00%Restocking Charges for OE Parts
Store 0 0.00%0 0.00%Misc. Store Expenses (Fax Machine, Fax Paper, Printer Ribbons etc.)
Taxes (Not Income)1,020 2.28%12,240 2.28%Payroll Taxes for Employee's @ this Location
Telephone 0 0.00%0 0.00%
Travel (Not Sales)0 0.00%0.00%
Tams 1,050 2.34%12,600 2.34%1 TAMS Computer & Equipment Lease/Depreciation Expense, Maint./Support Fee's & Tams Misc. Expenses
Training 0 0.00%0.00%Training Materials for NAPA Employee's
TOTAL MISC. EXP.4,640 10.35%53,280 9.91%
Executive Fees 0 0.00%
TOTAL EXPENSES 14,428 32.19%170,735 31.74%
Operating Income -9,946 -22.19%-116,949 -21.74%
Misc. Inc: Disc.(net)0 0.00%0.00%
Others 14,228 31.74%170,736 31.74%
NAPA ROI 4,282 9.55%53,787 10.00%Net Profit Before Tax
Location Annual Rate Monthly RateHourly Rate 1 Store Manager
Store Manager 58,000$ Salary 4,833$ 1 Clerk
Asst. Manager 46,000$ Hourly 3,833$
Asst. Manager Hourly -$
Asst. Manager Hourly -$
Sub Total 104,000$ 8,667$
Counter Pro -$ Hourly -$
Counter Pro -$ Hourly -$
Counter Pro -$ Hourly -$
Counter Pro Hourly -$
Counter Pro Hourly -$
Counter Pro Hourly -$
Pickers/Stockers Hourly -$
Pickers/Stockers Hourly -$
Pickers/Stockers Hourly -$
Counter Trainee -$ Hourly -$
Counter Trainee Hourly -$
Sub Total -$ -$
Total 104,000$
Driver -$ Hourly -$
Total -$ -$
Accounting -$ -$ Fixed Expense @ 1.01% of sales, Accounting & Data Processing Fee
General Office -$ -$ Fixed Expense @ .49% of sales
Total -$ -$
Total FTEs 104,000$ 8,667$
Payroll Calcualtor
Attachment B
City of Palo Alto
NAPA IBS On-Site
Proposal
City of Palo Alto
Subject: NAPA IBS
To: City of Palo Alto
Raul Juarez:
February 3, 2016
Genuine Parts Company/NAPA Integrated Business Solutions Division appreciates the
opportunity to submit the following proposal to become your contractor for: an on-site
Vendor Managed Inventory solution. We have attempted to make our proposal as
complete, informative and thorough as possible; however we remain open and ready to
discuss any area of the proposal that may require further clarification.
As an introduction, Genuine Parts Company, founded in 1928, is a service organization
engaged in the distribution of automotive replacement parts, industrial replacement
parts, office products, and electric/electronic materials. The company serves numerous
private and public sector customers from more than 6, 100 operations and has
approximately 39,300 employees.
The Automotive Parts Group I NAPA, is the largest division of Genuine Parts
Company, distributes automotive replacement parts, accessory items, and service
items. This Group operates 62 NAPA Distribution Centers, 3 Rayloc Manufacturing
Facilities, 2 Altrom Import Parts Distribution Centers, and 1 Traction Heavy Vehicle
Parts Distribution Centers and serves approximately 6, 100 NAPA Auto Parts stores
throughout the United States. The Group also includes UAP Inc. with 15 Distribution
Centers and 244 NAPA and Heavy Duty Vehicle Facilities in Canada that serve 680
wholesalers. In addition, the Automotive Parts Group includes Auto TODO with 17 Auto
TODO Facilities in Mexico.
The Automotive Parts Group I NAPA operates, oversees, and supports the Integrated
Business Solutions Division.
Our Major Products:
Automotive, Light Truck Replacement Parts
Heavy Duty Truck Equipment Repair Parts
Farm and Marine Maintenance Supplies
Integrated Business Solutions Division
Tools and Equipment
Automotive and Truck Accessories
Paint and Refinishing Products
NAPA AUTOTECH Training Programs
This Proposal is fully intended to meet the Goals and Objectives of City of Palo Alto.
1
Pll.llTS. PROOUCllv:T
The reduction of total cost to City of Palo Alto has been proven by many successful
operations currently in partnership with Genuine Parts Company/NAPA; this includes
savings for having one vendor and writing one check to one vendor.
Improved pricing and delivery service will be top priority. As demonstrated in our
pricing model City of Palo Alto will realize a Jobber Net I Cost plus +10%
NAPA I City of Palo Alto:
Pricing Plan Summary
NAPA Product Cost Billed to Customer at a 10 % gross profit
Non-NAPA Product Cost Billed to Customer at a 10 % gross profit
Operational Cost Billed t o customer at actual cost
• NAPA will agree to purchase NAPA Inventory or existing inventory from City
of Palo Alto that has a purchase history over the last twelve months and is
considered non-obsolete ........ or, NAPA would agree to work down existing
inventory levels at 0 cost and replenish with stock orders that are the
ownership of NAPA /BS.
• All inventories for the City of Palo Alto /BS will be procured and owned by
NAPA including tires, bulk fluids, and automotive, truck parts, or equipment
until such time as the item(s) are procured to a City of Palo Alto work order.
Overall improvement of City of Palo Alto satisfaction comes with the dedicated staff
and resources of our NAPA IBS team.
NAPA has a total on site warehouse inventory value of $15,000,000.00. This does not
include our other Western Division Centers which brings the total to over 200 Million in
inventory
Reduction in ordering and delivery time comes in several ways, first by improved on
hand inventory. Our service reduces the down/ wait time for parts and supplies.
Decrease losses in shelf life and obsolescence will be the result of dedication to have
the right inventory in place at the NAPA IBS City of Palo Alto location. NAPA Auto
Parts team will adjust inventory as needed or requested at the IBS location.
2
Pt.RTS PROOUC'IMT
Increase in inventory accountability and security, will be provided by the state of the art
inventory control systems in the TAM'S computer system. NAPA Auto Parts processes
insure accurate bar scan order pulling, and delivery tracking.
Genuine Parts Company, NAPA Auto Parts will look forward to a long partnership with
City of Palo Alto.
Executive Summary
We understand this is a program in the City of Palo Alto Fleet Maintenance facility
to provide an on-site fleet part and inventory program which we refer to as
Integrated Business Solutions. The expectations of the program will require parts
needs including staffing for the NAPA on site City of Palo Alto location in the most
cost effective manner to provide optimum service to City of Palo Alto and assist in
reducing costs through improved parts pricing and increase in productivity and
efficiency.
• City of Palo Alto NAPA IBS would stock identified supplies and parts in
quantities based on forecasted usage model
• City of Palo Alto NAPA IBS will operate 5 days a week from an embedded
location within the City of Palo Alto facility
• City of Palo Alto NAPA IBS will auto replenish its local inventory based on
usage and/or forecast
City of Palo Al to is currently operating in a capacity today of a current multi-vendor
base. City of Palo Alto can transition the procurement of parts to fewer or a single
supplier, operating costs will be reduced through volume discount and reduced
administrative burden. This consolidated model would be an immediate benefit
realized by both City of Palo Alto and the NAPA IBS. Once engaged, together we
can continue to explore additional options in reducing operating costs and parts
acquisition costs.
As discussed previous, improved pricing and service will be top priority. As
demonstrated in our pricing model City of Palo Alto will realize a Jobber Net +10%
Genuine Parts Company/NAPA 's sweet spot is managed inventory. There are no
other vendor's who have the influence, availability, total inventory, and logistics
that NAPA has in this market nationwide.
City of Palo Al to maintenance facilities have a need to repair equipment and
vehicles as quickly as possible to minimize the amount of time they are out of
service and to maximize the efficiency of the repair technicians. City of Palo Alto
3
requires a reliable and complete source of repair parts to service the needs of the
repair facility efficiently.
NAPA will provide a well-trained staff that is experienced and knowledgeable, in
order to meet or exceed the efficiency objectives of City of Palo Alto. NAPA has
alliances formed with outside vendors in order to provide the best possible service
and the lowest landed acquisition cost for City of Palo Alto.
Genuine Parts Company/NAPA's primary objective is to reduce costs by
enhancing and improving the efficiency and service levels of the fleet management
division.
One vendor -one check.
We are aware of the, challenges, and milestones outlined in this Proposal and the
following proposal is based on the information provided by City of Palo Alto. We
are willing to enter into an agreement with City of Palo Alto and have attempted to
make our response as complete and thorough as possible.
Genuine Parts Company has the most experience operating Integrated Supply
operations with our first location beginning in 1991. By having over 370 Integrated
Store locations nationally, NAPA has been in a unique position to handle millions
of dollars in automotive and non-automotive products for many of our customers.
Our customers consist of many Fleets, Utility Companies, City/County facilities,
other Government facilities, Car Dealers, Large Truck Fleets, Manufacturers, and
many others.
All members of our project team are experienced in implementing and managing
supply operations at various levels. All members possess many years of
experience with NAPA and dealing with customers from the senior management
level to automotive technicians.
Description of Services
Genuine Parts Company/NAPA propose to provide a complete on-site parts operation
of NAPA -owned inventory based primarily on the history file of the existing stock,
required inventory concession stocking list, and equipment in fleet. NAPA will provide
the personnel and management to properly staff the on-site IBS location . The number
of people and/or scheduling will be mutually agreed upon between the parties.
Hours of Operation
Monday thru Friday
Cost for additional services: will be billed at current or overtime rates in accordance
with Federal, State and Local laws.
4
'
Prompt Payment
Payment terms are net 25th.
City of Palo Alto Goals
Genuine Parts Company/NAPA understands the primary goal of the fleet.
NAPA certainly understands the price of a part is not the actual cost of a part, the list
below is some of the items we can reduce from the current price of a part.
·Add RFP or Bid Cost
·Add PO Cost, All Transaction Cost
•Add Accounting, Check Cost
•Add Inventory and Inventory Caring Cost
•Add Shrinkage and Obsolete Inventory Cost
•Add Employee Cost
•Add Freight Cost
•Add Return Cost
·Add Lost Cores and Warranties
·Add Lost Productivity -While Waiting on Parts
• NAPA believes having the right inventory in place and available will improve
services to the end customer.
• This will improve the overall customer satisfaction rate.
• Our goal by having the right inventory will reduce ordering and delivery time.
This will decrease the customer service time.
• NAPA managed inventory approach; Marketplace Inventory Classification (MIC)
will decrease losses due to shelf life and obsolete parts.
• "MIC" is an award winning program proven to increase inventory accountability.
NAPA may provide a delivery driver as needed or requested.
The intent of our proposal is to show The City of Palo Alto team that our NAPA Auto
Parts Integrated Business Solutions team is uniquely qualified to tackle the challenge
of managing the parts system for current and future state of City of Palo Alto.
Our proposal will focus on the key differentiators that make NAPA IBS a great strategic
partner with City of Palo Alto:
Centralized inventory management through the NAPA IBS Network
Proven cost savings and efficiency results with over 370 vendor managed inventory
sites nationally
__ ,..._.-• National network of 62 master distribution centers offering same day or next day
delivery on over $1 billion in parts inventory
• Centralized billing and accounting
• On-site, On-line and product specific training
5
• IBS Network of stores with access to 1,300+ non-NAPA and OE vendors to ensure City
of Palo Alto has a basis of comparison on price, quality, and service with other fleet
organizations.
• NAPA Auto Parts is an absolute rock-solid, financially sound vendor with over 90 years
in the parts distribution business with Genuine Parts Company 20+ years of experience
in the vendor-managed inventory business for fleet operations from 50 to 13,000
vehicles.
• For direct supply, we have the Fresno Distribution Center that provides daily delivery to
NAPA City of Palo Alto IBS site .... meaning we are able to provide fast delivery service
to the IBS site.
• The ability to also leverage the resources and strengths of Genuine Parts entire supply
chain: automotive, industrial, office products and much more. Through NAPA and
GPC, City of Palo Alto has direct access to 445,000 light, medium, HD parts and
accessories. Through our NAPA IBS sites, City of Palo Alto can leverage over 1,300
non-NAPA distributors and manufacturers.
Cost of Proposed Services
The Parts operation would bill the following:
Operational Cost
To achieve this goal, NAPA. will bill City of Palo Alto monthly, or as requested: All
Operational Expenses associated with City of Palo Alto will be billed transparently.
• Any and all cost and expenses associated with the operation of the On Site Store or
the vehicles used by NAPA in the operation of the On Site Store. Including, but not
limited to salary, benefits and all insurance.
• NAPA will provide a monthly Operating Statement provided by NAPA Accountant
services.
• Local COLA annual wage changes will be reviewed and agreed upon by both parties.
All fees and expenses will be agreed upon by both parties: NAPA and City of Palo Alto.
Additional overtime expense incurred as a result of peak or emergency response for
required hours of operation outside normal business hours will be billed as a separate
line item.
Cost Plus
A GP on standard parts will be 10 % gross profit
• A fixed markup will be used from cost; the goal is to achieve a net of 10 %
profit. Cost divided by .9 to achieve price.
Pricing will be set at Jobber Net store cost, minus any manufacture rebates, if applicable
to achieve NET cost. Or in the case of buyouts, it will be lowest invoice cost. ..
6
\
The vision and goal is to provide a cost effective Vendor Managed Inventory system.
Emergency Operations Support
Emergency services
NAPA understands that the needs of maintaining the fleet cannot always be predicted .
There may be off schedule needs and emergency situations. NAPA agrees to have the
on-site staff fill scheduled overtime events and to make every effort to have staff
available for emergency callout in the requested time frame.
A current list of names and contact numbers on the NAPA emergency list will posted
and copies kept current with key fleet managers.
City of Palo Alto fleet will have NAPA and its staff members as its partner in any
emergency.
The uniqueness of this proposal is that it really calls for a perfect balance of supply
chain expertise, pricing, accountability, fast service, and inventory management
experience in a fleet environment. This is more than a simple price ... it is a strategic
economic, supply and productivity partnership.
We hope after you review our proposal that you'll consider NAPA Auto Parts IBS as a
strategic partner to work with City of Palo Alto for many years to come. We are
committed to make this the model solution.
Please feel free to contact us at any time.
Regards,
Jim Hardesty
NAPAIBS
Western Division
Genuine Parts Company
1422 N Batavia
Orange, CA 92867
714-412-1098
7
NJPA CONTRACT
Attachment C
INTEGRATED SUPPLY AGREEMENT
BY AND BETWEEN
GENUINE PARTS COMPANY
AND
____________________
NJPA CONTRACT
INTEGRATED SUPPLY AGREEMENT
BY AND BETWEEN
GENUINE PARTS COMPANY
AND
THIS INTERGRATED SUPPLY AGREEMENT (this “Agreement”) is made
by and between GENUINE PARTS COMPANY, a Georgia corporation (d/b/a NAPA
Auto Parts) (“NAPA”), and , (“CUSTOMER”), to be effective as of the day
of , 20 (the “Effective Date”).
W I T N E S S E T H
Pursuant to a competitive bidding and selection process by the National Joint
Powers Alliance (hereinafter, “NJPA”), a Minnesota-based Service Cooperative created
by Minnesota Legislative Statute 123A.21, NAPA established a contract on JULY 22nd,
2015 with NJPA to sell certain auto, truck, bus, and equipment parts as well as to provide
Integrated Business Solutions (IBS) to its members (hereinafter, “Master Agreement”);
and
By becoming a participating member of NJPA (hereinafter, “Member”), the
___________________and its related entities (hereinafter, “User Agencies”) are
authorized to utilize the pricing and incentives available to NJPA Members set forth in
the Master Agreement; and
NAPA and NJPA executed contract #061015, (hereinafter, “NJPA Contract”),
attached hereto as Exhibit C, to establish a source of supply for certain auto, truck, and
bus parts as well as to provide Integrated Business Solutions services; and
CUSTOMER desires to become a User Agency under such NJPA Contract and
desires to receive integrated business solutions services from NAPA; and
CUSTOMER AND NAPA agree that the NJPA Contract is a vehicle by which
CUSTOMER may contract directly with NAPA for parts and services, but that the terms
and conditions of this Agreement and not the terms and conditions of the NJPA Contract
shall govern the relationship of the parties; and
NAPA desires to provide integrated business solutions services and to establish
inventories in CUSTOMER’s locations to service the fleet parts needs of CUSTOMER
and to serve as the primary supplier of automotive replacement parts and other supplies
and/or equipment (the “Inventory”) to serve the needs of CUSTOMER; and
NJPA Contract
CUSTOMER desires to provide space for the Inventory on the premises of
CUSTOMER for use by NAPA (“On Site Store”) and agrees that NAPA will be its
primary supplier of the Inventory pursuant to the terms herein.
NOW THEREFORE,in consideration of the mutual promises and covenants
contained herein, and other good and valuable consideration, the receipt and sufficiency
of which are acknowledged, the parties hereto agree as follows:
AGREEMENT
1.DEFINITIONS. For purposes of this Agreement, the following terms
shall have the meanings set forth below:
(a)Primary Supplier shall mean the parts supplier that provides a minimum
of ninety percent (90%) of the Inventory needs of CUSTOMER.
(b)NAPA Owned Store shall mean an auto parts store lawfully using the
tradename or trademark “NAPA” which is wholly owned by NAPA.
(c)NAPA Jobber shall mean an auto parts store lawfully using the tradename
or trademark “NAPA” with respect to which NAPA maintains no
ownership interest.
2.CUSTOMER’S CURRENT LOCATIONS. NAPA will establish On
Site Store(s) at the CUSTOMER’S following location(s):
Manager:
Additional locations of the CUSTOMER may be added to this Agreement but only by a
written amendment executed and agreed to by both the CUSTOMER and NAPA.
3.TERM. This Agreement shall begin the date this Agreement is fully
executed and shall end when the NJPA Contract terminates or expires or when terminated
earlier in accordance with the applicable terms and conditions stated herein. As the
NJPA Agreement is renewed or extended, this Agreement may be renewed or extended
for a period of time equal to or shorter than the period of time the NJPA Agreement is
renewed or extended upon the mutual written agreement of the Parties. This Agreement
shall terminate automatically upon the termination, for any reason, of the NJPA Contract
or the Master Agreement. Notwithstanding the foregoing, either party may terminate this
Agreement at any time for its convenience by giving the other party sixty (60) days prior
written notice of such termination.
NJPA Contract
4.DUTIES AND RESPONSIBILITIES OF NAPA. NAPA shall have the
following duties and responsibilities during the term of this Agreement:
(a)NAPA will operate the On Site Store(s) and provide the Inventory to
CUSTOMER’s now existing locations. NAPA shall provide all personnel required to
operate the On Site Store(s).
(b)In those circumstances when delivery is required by CUSTOMER, NAPA
will provide parts to CUSTOMER’s locations on a daily route basis. In addition, NAPA
will accelerate delivery on those items CUSTOMER requires to be delivered on an
expedited basis. NAPA will make all reasonable efforts to ensure prompt delivery to the
CUSTOMER’s location(s) requesting part(s).
(c)NAPA shall provide all computers and reports necessary to monitor
monthly expenses as they pertain to the daily operation of the On Site Store(s). NAPA
shall provide computer ordering and cataloging to each On Site Store.
(d)NAPA shall provide a profit and loss statement of the parts operations to
the CUSTOMER on approximately the 25th of each month for each On Site Store.
(e)NAPA shall provide back-up emergency service during non-working hour
contingencies. This overtime expense (calculated at time and one half) will be charged
on a cost basis to CUSTOMER, and must be pre-approved by CUSTOMER. The parties
shall mutually agree upon the pre-approval process for such emergency situations.
NAPA will provide a list of personnel, including telephone numbers, who will respond to
emergency service requests.
5.DUTIES AND RESPONSIBILITIES OF CUSTOMER. CUSTOMER
shall have the following duties and responsibilities during the term of this Agreement:
(a)CUSTOMER shall provide, at its sole expense, usable space for NAPA’s
On Site Store(s) and the Inventory. CUSTOMER shall provide access to restroom
facilities for NAPA employees. Further, CUSTOMER shall furnish, at its sole expense,
all utilities for the On Site Store(s) including: water, sanitation, sewer, light, telephone,
heat, gas, electricity, power, fuel, janitorial and all other utilities and services rendered or
delivered to the On Site Store(s) whatsoever. CUSTOMER shall provide NAPA a safe
work environment that is free from hostility, violence, or discrimination. NAPA reserves
the right to terminate the contract immediately should NAPA encounter a hostile, violent,
discriminatory, or unsafe work environment.
(b)CUSTOMER intends to use NAPA as its Primary Supplier of the
Inventory under this Agreement. CUSTOMER reserves the right to purchase any item
outside this Agreement where it is determined to be more economical or timely so long as
the purchase of aforesaid part or parts does not result in NAPA no longer being
CUSTOMER’s Primary Supplier in which case NAPA may terminate this Agreement.
NJPA CONTRACT
(c)Each On Site Store location shall be appropriately secured or otherwise
maintained separate and apart from the business of CUSTOMER. There shall be no
intermingling of CUSTOMER’s parts or other inventory with NAPA’s parts or inventory.
Access to the secured On Site Store(s) shall be restricted to NAPA employees and
authorized NAPA representatives only. CUSTOMER’S employees, contractors or agents
shall not be permitted to enter the secured On-Site Store area unless accompanied by a
NAPA employee or other authorized NAPA representative.
(d)CUSTOMER shall, at all times during the term of this Agreement, at
CUSTOMER’S sole expense, maintain in good condition and repair (so as to prevent any
damage or injury to NAPA’s employees, the Inventory or other personal property located
in the On Site Store(s)) the roof, exterior walls, foundation, and structural portions of the
On Site Store(s) and all portions of the electrical and plumbing systems lying outside of
the On Site Store(s) but serving the On Site Store(s).
(e)CUSTOMER shall provide information regarding fleet changes to NAPA
as soon as possible. Fleet changes include but are not limited to the removal of types of
vehicles from the fleet and the addition of new vehicles to the fleet.
6.ALTERNATIVE SUPPLIERS. Each On Site Store may be serviced by
a NAPA Owned Store or a NAPA Jobber. CUSTOMER acknowledges that whether it
will be serviced by a NAPA Owned Store or a NAPA Jobber will be determined by
NAPA, in its sole discretion, and that if CUSTOMER is to be serviced by a NAPA
Jobber, then such NAPA Jobber must evidence its desire to abide by the terms of this
Agreement by entering into an Assignment in the form of Exhibit A hereto.
7.PAYMENT TERMS/PRICING. NAPA shall invoice the CUSTOMER
for all Inventory purchased pursuant to this Agreement on a monthly basis according to
the pricing plan below. CUSTOMER agrees to pay the entire amount of all statements
received from NAPA by the 25th day of the month following receipt of any such
statement. If CUSTOMER has not paid the entire amount of all statements received from
NAPA within 10 days of 25th day of the month following receipt of such invoice,
CUSTOMER shall be put on COD until such amount is paid in full. No prompt pay
discount is available under this Agreement.
There are two pricing options available to CUSTOMER. The pricing option for this
Agreement must be indicated by CUSTOMER initials, below.
PRICING OPTION #1 CUSTOMER INITIALS: _______
The overall goal of CUSTOMER’s pricing plan is to achieve a 10% percent (10%) net
profit for NAPA (the “Net Profit Target”) by adjusting the pricing of two elements:
(a)Product Costs. The pricing of the Inventory to be supplied to
CUSTOMER by NAPA pursuant to this Agreement. Product Costs shall
NJPA Contract
be further divided into “NAPA Product Costs,” which is the pricing of
NAPA supplier manufactured products, and “Non-NAPA Product Costs,”
which is the pricing of products which have not been manufactured by
NAPA suppliers but which have been acquired for CUSTOMER by
NAPA pursuant to this Agreement.
(b)Operational Costs. Any and all costs and expenses associated with the
operation of the On Site Store(s) or the vehicles used by NAPA in the
operation of the On Site Store(s), including, but not limited to, salary and
benefits payable to NAPA employees at the On Site Store(s), worker’s
compensation benefits and insurance, unemployment insurance, personal
property insurance for the On Site Store(s) and Inventory, any deductible
for losses covered under the personal property,automobile liability or
general liability insurance policies of NAPA and all equipment supplied
by NAPA shall be borne by NAPA and are already factored into the
pricing profile of products sold under this Agreement. An example of a
profit and loss statement reflecting such costs and expenses is attached
hereto as Exhibit B.
PRICING PLAN SUMMARY
NAPA Product Costs
Non-NAPA Product Costs
Billed to CUSTOMER at 9071 NJPA Profile Price
Billed to CUSTOMER at a 25% gross profit rate
Operational Costs Paid entirely by NAPA
Net Profit Target Amounts will be refunded or charged based on failure to
achieve an overall 10% net profit for the previous month.
NAPA Product Costs shall be billed to CUSTOMER based on a “9071 NAPA
Pricing Profile” which has been provided to CUSTOMER in connection with this
Agreement. Non-NAPA Product Costs shall be billed by NAPA to yield a gross profit
of twenty five (25%). All Operational Costs shall be borne by NAPA.
Sales at each On Site Store location will be reviewed after the first ninety (90)
days of operation and on a month by month basis thereafter to ensure a ten percent
(10%) net profit for NAPA. If monthly sales at each On Site Store, independently as
opposed to in the aggregate, are producing more than a ten percent (10%) net profit for
NAPA, NAPA will pay to CUSTOMER, via a refund check, the overage. Conversely, if
NAPA’s net profit for the preceding month is less than ten percent (10%), NAPA will
bill CUSTOMER for the deficiency. CUSTOMER and NAPA mutually agree that
Customer’s maximum payment obligation pursuant to this profit guarantee shall be set at
$_________; and Customer has encumbered such amount to cover this potential
liability. The parties agree to mutually work together to adjust the amount if such
amount must be increased during the Term of the contract.
NJPA Contract
CUSTOMER INITIALS _______
In addition, NAPA may use any sub-contractor for the procurement of “outside”
purchases or services (i.e., those parts or services not traditionally stocked or performed
by NAPA), and CUSTOMER will be billed an additional charge for any such purchases
so as to yield NAPA a twenty five percent (25%) gross profit on such purchases.
CUSTOMER must provide pre-approval in writing for such outside purchases.
PRICING OPTION #2 CUSTOMER INITIALS: _______
The overall goal of CUSTOMER’s pricing plan is to achieve a ten (10%) net profit for
NAPA (the “Net Profit Target”) by adjusting the pricing of two elements:
(a)Product Costs. The pricing of the Inventory to be supplied to
CUSTOMER by NAPA pursuant to this Agreement. Product Costs shall
be further divided into “NAPA Product Costs,” which is the pricing of
NAPA supplier manufactured products, and “Non-NAPA Product Costs,”
which is the pricing of products which have not been manufactured by
NAPA suppliers but which have been acquired for CUSTOMER by
NAPA pursuant to this Agreement.
(b)Operational Costs. Any and all costs and expenses associated with the
operation of the On Site Store(s) or the vehicles used by NAPA in the
operation of the On Site Store(s), including, but not limited to, salary and
benefits payable to NAPA employees at the On Site Store(s), worker’s
compensation benefits and insurance, unemployment insurance, personal
property insurance for the On Site Store(s) and Inventory, any deductible
for losses covered under the personal property,automobile liability or
general liability insurance policies of NAPA and all equipment supplied
by NAPA. An example of a profit and loss statement reflecting such costs
and expenses is attached hereto as Exhibit B.
PRICING PLAN SUMMARY
NAPA Product Costs
Non-NAPA Product Costs
Billed to CUSTOMER at a 10% gross profit rate
Billed to CUSTOMER at a 10% gross profit rate
Operational Costs Billed to CUSTOMER at cost
Net Profit Target 10% net profit for NAPA
Both NAPA Product Costs and Non-NAPA Product Costs shall be set by NAPA to
yield a gross profit of ten percent (10%). Operational costs will be charged to
NJPA Contract
CUSTOMER at cost, with all such charges for Operational Costs to be included in
CUSTOMER’s monthly billing statement. CUSTOMER will be billed at the end of each
month for operational costs on an “in arrears” basis.
CUSTOMER and NAPA mutually agree that Customer’s maximum payment
obligation pursuant to this profit guarantee shall be set at $_________; and Customer
has encumbered such amount to cover this potential liability. The parties agree to
mutually work together to adjust the amount if such amount must be increased during
the Term of the contract. CUSTOMER INITIALS ______
In addition, NAPA may use any sub-contractor for the procurement of “outside”
purchases or services (i.e., those parts or services not traditionally stocked or performed
by NAPA), and CUSTOMER will be billed an additional charge for any such purchases
so as to yield NAPA a ten percent (10%) gross profit on such purchases. CUSTOMER
must provide pre-approval in writing of such outside purchases.
8.INSURANCE.
(a)CUSTOMER is a state agency and is self-insured for liability and workers
compensation through the Department of Administrative Services. CUSTOMER shall
provide to NAPA, upon execution of this Agreement, a copy of all Certificates of
Insurance evidencing the insurance coverages above.
(b)NAPA shall maintain during the term of this Agreement worker’s
compensation insurance coverage for its employees located at the On Site Store(s) in
amounts required by law. In addition, NAPA shall maintain personal property insurance
during the term of this Agreement in an amount sufficient to cover any loss or damage to
the Inventory and any other personal property owned by NAPA that is located at the On
Site Store(s).
(c)The insurance policies in this section required to be held by each party
shall contain a waiver of subrogation against the other party.
(d) Neither Customer nor the Department of Administrative Services shall
procure or provide insurance for NAPA property or Inventory.
9.NO LIENS.
(a)CUSTOMER warrants that it shall take no action, including but not
limited to the granting of a security interest, or fail to take any action, which would
operate or does operate in any way to encumber the Inventory of NAPA located in the On
Site Store(s).
(b)CUSTOMER grants NAPA a power of attorney to execute such
documents as are necessary to protect NAPA’s interest in the Inventory on consignment
on CUSTOMER’s premises, including any UCC-1 statements.
NJPA Contract
10.PERSONNEL. NAPA and CUSTOMER shall attempt in good faith to
mutually agree upon the identity of the persons that will be selected to staff the On Site
Store(s). In the event that CUSTOMER for any reason wishes to remove or replace any
of the NAPA personnel in the On Site Store(s), the parties will attempt to resolve
CUSTOMER’s request by mutual agreement.
11.WARRANTY DISCLAIMER. All automotive parts supplied pursuant
to this Agreement are subject to the terms of written warranties provided by the
manufacturer of each part, and NAPA shall use reasonable commercial efforts to assist
the CUSTOMER in processing all warranty claims that the CUSTOMER may have
against a manufacturer. The manufacturer’s warranty will be the sole and exclusive
remedy of the CUSTOMER in connection with any claims concerning the parts supplied
to CUSTOMER pursuant to this Agreement. ALL OTHER WARRANTIES, BOTH
EXPRESS AND IMPLIED, INCLUDING ANY IMPLIED WARRANTIES OF
MERCHANTIBILITY OR FITNESS FOR A PARTICULAR PURPOSE, ARE
HEREBY EXCLUDED. Copies of the manufacturers’ warranties are available to
CUSTOMER upon request.
12.TERMINATION FOR CAUSE. This Agreement may be terminated
immediately, unless otherwise stated in this Section 12, by either party for cause:
(a)In the event that the other party fails or refuses to pay any amounts due
under this Agreement and such failure continues for ten (10) days;
(b)In the event that the other party fails or refuses to perform any other
obligation required under this Agreement, and such failure or refusal continues for thirty
(30) days after written notice thereof; or
(c)In the event that the other party files any bankruptcy petition, has any
bankruptcy petition filed against it, makes any assignment of its assets for the benefit of
creditors, or admits in writing its inability to pay its debts as they become due.
13.EFFECT OF TERMINATION. Immediately upon termination of this
Agreement by either party for any reason:
(a)All duties, responsibilities and other obligations of each party hereunder
shall terminate, except for the payment of any amounts due and owing to NAPA at the
time of termination.
(b)Each party shall immediately return to the other party all equipment,
software, books, records, tools and any other personal property owned by the other party
that are in such party’s possession. CUSTOMER shall allow NAPA full and unrestricted
access to enter into the On Site Store(s) and immediately remove all equipment and other
items of personal property owned by NAPA without being deemed guilty of trespass or
NJPA Contract
any other violation of the law. All inventory records, sales history, sales analysis and all
other information generated by NAPA under this Agreement will be returned to
CUSTOMER.
Nothing contained in this Section shall be deemed a waiver of, or in any other
manner impair or prejudice, any other legal rights that either party may have against the
other party for any breach of this Agreement. The provisions and obligations of Sections
9, 11, 15, 18, and 20 shall survive the termination of this Agreement for any reason.
14.BUY-BACK OF INVENTORY. Upon termination, expiration, or non-
renewal of the contract,NAPA shall have the option to require CUSTOMER to
purchase all non-NAPA branded Inventory, and CUSTOMER shall have the option to
purchase all NAPA branded Inventory, owned by NAPA and located in the On Site
Store(s) at NAPA’s current acquisition cost. [The parties may negotiate a “not to exceed
amount”, if CUSTOMER requires it for budgeting purposes.]
CUSTOMER INITIALS: _______
15.CHANGE OF CONTROL. NAPA may unilaterally terminate this
Agreement by giving thirty (30) days written notice to CUSTOMER upon the occurrence
of any one or more of the following events:
(a)A change in the management or ownership of CUSTOMER;
(b)A sale, lease, assignment or other transfer of CUSTOMER’S business or
assets, whether through a stock purchase, merger, asset purchase, or other similar
transaction, of at least a ten percent (10%) interest therein.
16.LANDLORD CONSENT AND WAIVER. If CUSTOMER does not
own, in unencumbered fee simple title, all property upon which the On Site Store(s)
is/are located, CUSTOMER agrees to acquire from each Landlord or Mortgagee a fully
executed Landlord Consent and Waiver which is attached here to as Exhibit C. The
Landlord Consent and Waiver(s) shall be returned to NAPA prior to the commencement
of operations on such On Site Store(s).
17.INDEMNIFICATION. NAPA shall be responsible for and shall
indemnify and hold CUSTOMER harmless from and against all damages, claims or
demands that may, during the term of this Agreement, arise or be occasioned by the
negligent or intentional acts of NAPA or NAPA’s employees.
18.NOTICES. Whenever any notice, demand or request is required or
permitted hereunder, such notice, demand or request shall be hand-delivered in person or
sent via facsimile, by overnight mail through a reputable service, or by certified mail,
return receipt requested, to the addresses set forth below:
As to NAPA:
NJPA Contract
Attn:
Telephone: ()
Facsimile: ()
As to CUSTOMER:
Attn:
Telephone: ()
Facsimile: ()
Each such notice shall be deemed delivered (i) on the date of receipt if delivered by hand,
overnight courier service or if sent by facsimile, or (ii) on the date three (3) business days
after depositing with the United States Postal Service if mailed by registered or certified
mail. Either party may change its address specified for this notice by giving the other
party at least ten (10) days written notice in accordance with this Section 19.
19.FORCE MAJEURE / DAMAGE OF PREMISES.
(a)Whenever performance by either party of any of their respective
obligations (other than the obligation to make payment of money due hereunder) is
substantially prevented by reason of any act of God, other industrial or transportation
disturbance, fire, floods, riots, acts of enemies, national emergencies or by any other
cause not within the reasonable control of such party and not occasioned by its
negligence, then such performance shall be excused and the performance of such
obligations under this Agreement shall be suspended for the duration of such prevention
and for a reasonable time thereafter.
(b)NAPA may terminate this Agreement immediately in the event that the
CUSTOMER’s premises are damaged by any casualty, or such portion of the premises is
condemned by any legally constituted authority, such as will make the CUSTOMER’s
premises unusable for the On Site Store(s) in the reasonable judgment of NAPA.
20.SUCCESSORS AND ASSIGNS. The provisions of this Agreement shall
be binding upon and shall inure to the benefit of the parties hereto and their respective
officers, directors, employees, successors and assigns. Notwithstanding the foregoing,
the rights and obligations of either party to this Agreement may not be assigned without
the prior written consent of the other party hereto, which consent shall not be
unreasonably withheld.
21.AMENDMENTS. No amendment to this Agreement shall be binding on
either party hereto unless such amendment is in writing and executed by both parties with
the same formality as this Agreement is executed.
NJPA Contract
22.NO WAIVER OF RIGHTS. No failure of either party hereto to exercise
any power given such party hereunder or to insist upon strict compliance by the other
party to its obligations hereunder, and no custom or practice of the parties in variance
with the terms hereof, shall constitute a waiver of either party’s right to demand exact
compliance with the terms hereof.
23.LIMITATIONS ON RIGHTS OF THIRD PARTIES. All obligations
of a party under this Agreement are imposed solely and exclusively for the benefit of the
parties, and no other person shall, under any circumstances, be deemed to be a
beneficiary of such obligations.
24.INDEPENDENT CONTRACTOR. The parties hereto are independent
contractors. Nothing in this Agreement shall create or shall be deemed to create any
fiduciary relationship or the relationship of principal and agent, partnership, joint
venturers or any other similar or representative relationship between the parties hereto.
25.CHOICE OF LAW. This Agreement shall be construed and interpreted
under the laws of the State of Georgia.
26.COUNTERPARTS. This Agreement may be executed in one or more
counterparts and each counterpart shall, for all purposes, be deemed an original, but all
such counterparts shall together constitute but one and the same instrument.
27.SECTION HEADINGS. Section titles or captions contained herein are
inserted only as a matter of convenience for reference and in no way define, limit, extend,
or describe the scope hereof or the intent of any provision hereof.
28.SEVERABILITY. In the event any part of this Agreement shall be
finally determined by a court of law to be illegal or unenforceable for any reason, then
that illegal or enforceable part shall be severed from the Agreement, and the remaining
terms shall continue in full force and effect.
29.ENTIRE AGREEMENT. This Agreement constitutes the entire
agreement of the parties hereto and no prior representation, inducement, promise or
agreement, oral or written, between the parties not embodied herein shall be of any force
and effect.
[Signatures Appear on Next Page]
NJPA CONTRACT
IN WITNESS WHEREOF, the parties hereto cause their hands and seals to be
affixed by their duly-authorized representatives effective as of the date and year first
above written.
GENUINE PARTS COMPANY
By:
Name:
Title:
[Name of Company]
By:
Name:
Title:
NJPA CONTRACT
EXHIBIT A
ASSIGNMENT
See attached.
NJPA Contract
ASSIGNMENT
FOR GOOD AND VALUABLE CONSIDERATION,the receipt and sufficiency
of which are hereby acknowledged, GENUINE PARTS COMPANY, a Georgia
corporation (hereinafter “Assignor”), hereby assigns, transfers, sets over and delivers to
[JOBBER/POP], a (hereinafter “Assignee”), all of Assignor’s rights, obligations
and interest, including any options to renew or extend the contract term, in those certain
location(s) as set forth below, as governed by the Integrated Supply Agreement dated
by and between Genuine Parts Company and [CUSTOMER] (the
“Integrated Supply Agreement”).
Location(s):
Assignee hereby accepts the assignment of the Integrated Supply Agreement,
agrees to provide the services and perform all other obligations required to be performed
by “NAPA” in said Integrated Supply Agreement at the times and in the manner set forth
in said Integrated Supply Agreement, and shall be bound by all other terms, covenants
and conditions of said Integrated Supply Agreement with regard to the location(s) set
forth above, all with the same force and effect as if Assignee were originally named as
“NAPA” therein.
[CUSTOMER] hereby consents to the above assignment of the Integrated Supply
Agreement on the terms set forth herein.
The parties hereto agree that the assignment as set forth herein shall be effective
as of midnight on .
IN WITNESS WHEREOF, the undersigned have set their hands this day
of , 20 .
ASSIGNOR:ASSIGNEE:
GENUINE PARTS COMPANY [JOBBER/POP]
By: By:
Name: Name:
Its: Its:
Agreed and acknowledged:
[CUSTOMER]
By:
Name:
Its:
NJPA CONTRACT
EXHIBIT B
SAMPLE PROFIT AND LOSS STATEMENT
See attached.
NJPA CONTRACT
EXHIBIT C
NJPA CONTRACT
See attached.
Attachment D
FORM D
Contract Award
RFP #061015
Formal Offering of Proposal
(To be completed Only by Proposer)
FLEET-RELATED MAINTENANCE EQUIPMENT, SUPPLIES, SERVICES, AND INVENTORY MANAGEMENT
SOLUTIONS
In compliance with the Request for Proposal (RFP) for FLEET-RELATED MAINTENANCE EQUIPMENT, SUPPLIES,
SERVICES, AND INVENTORY MANAGEMENT SOLUTIONS, the undersigned warrants that I/we have examined this
RFP and, being familiar with all of the instructions, terms and conditions, general specifications, expectations, technical
specifications, service expectations and any special terms, do hereby propose, fully commit and agree to furnish the
defined equipmenVproducts and related services in full compliance with all terms, conditions of this RFP, any applicable
amendments of this RFP , and all Proposer's Response documentation. Proposer further understands they accept the full
responsibility as the sole sou rce of responsibility of the proposed response herein and that the performance of any sub-
contractors employed by the Proposer in fulfillment of this proposal is the sole responsibility of the Proposer.
Company Name: Genuine Parts Company/NAPA Integrated Business Solutions (IBS) Date: June 10, 2015
Company Address: 2999 Circle 75 Parkway SE
City: Atlanta State: _G~A ___ Zip: 30399
Contact Person: _J=-e=t"--t '"""K=u'""'"nt=z--------r---__,.~ Title: __ V~i=c=-e~P~re=-s~id=e=-n~t~N'--A"""P~A'--l=B~S~--------
FormE
Contract Acceptance and Award
(To be completed only by NJP A)
NJPA! 061015 FLEET-RELATED MAINTENANCE EQUIPl\ilENT, SUPPLIES, SERVICES, AND
INVENTORY MANAGEMENT SOLUTIONS
Genuine Parts Company/NAPA Integrated Business Solutions (IBS)
Proposer's full legal name
Your proposal is hereby accepted and awarded. As an awarded Proposer, you are now bound to provide the defined
product/equipment and services contained in your proposal offering according to all terms, conditions, and pricing set forth
in this RFP, any amendments to this RFP, your Response, and any exceptions accepted or rejected by NJPA on Form C.
The effective start date of the Contract will be _ _,_,__,,,_.-v-.,.._-L-«~SJ ____ , 20 IS and continue for four years
~~ ........ ~of a fifth year renewal option at the discretion ofNJP A.
NJPA Authorized signature: (-~2~~~~~~=----
JPA Executive Director (Name printed or typed)
Awarded this a\~: day of~ u.\ y , 20
NJPA Authorized signature: ----;?~t--t-"-W'·t""'""'"""_\ ...... k,__~----
:? NJP A Board Member
Executed this d.~ day of 51.A,\ y , 20
\6 NJPA Contract Numbcr~61 \)1 5-GPC[
Swt-+ u ero N2-()
(Name printed or typed)
bS NJP A Contract Number 1061015-GPC
Vendor Authorized signature: -=~--r"°'-'-'-+_,,_-'---"'-\:-----,f----
T itle: llc~ &~, ck-vt -N,11?/t !r3S
(Name printed or typed)
Executed this __ Q?J J.C/ day of _J-_J_1----' 20 _ / C NJP A Contract Number \QQ.! ,Vl5-G PC
42