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HomeMy WebLinkAbout2012-07-23 City Council Agenda PacketCITY OF PALO ALTO CITY COUNCIL Special Meeting Council Chambers July 23, 2012 4:30 PM Agenda posted according to PAMC Section 2.04.070. Supporting materials are available in the Council Chambers on the Thursday preceding the meeting. 1 July 23, 2012 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Call to Order Special Orders of the Day 1. Recognition of Website Advisory Committee 2. Appointment To The Planning And Transportation Commission For One Unexpired Term Ending On July 31, 2013 City Manager Comments Oral Communications Members of the public may speak to any item not on the agenda; three minutes per speaker. Council reserves the right to limit the duration of Oral Communications period to 30 minutes. Minutes Approval April 16, 2012 Consent Calendar Items will be voted on in one motion unless removed from the calendar by two Council Members. 3. Request for Approval of Master Service Agreement Between the City of Palo Alto and Internet Systems Consortium, Inc. For Internet Connectivity Services 4. Policy and Services Committee Recommendation Regarding Massage Ordinance 5. Approval of a Contract with Valentine Corporation In The Amount of $1,947,368.50 for Channing Avenue/Lincoln Avenue Storm Drain Improvements - Phase II, Capital Improvement Program Project SD-11101 2 July 23, 2012 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. 6. Approval of a Contract with O'Grady Paving, Inc. in the Amount of $2,135,714, for the 2012 Asphalt Paving Project, the 3rd of 6 Contracts in the 2012 Street Maintenance Program Project (CIP PE-86070) 7. Adoption of Resolution Establishing Fiscal Year 2012-13 Secured and Unsecured Property Tax Levy for the City of Palo Alto’s General Obligation Bond Indebtedness (Measure N) 8. Appeal of Director’s Architectural Review Approval of Site Improvements Associated with the Conversion of an Existing Building to an 86 Room Hotel with Ground Floor Restaurant and a Design Enhancement Exception (DEE) and Sign Exceptions at 180 Hamilton Avenue (Casa Olga) 9. Designation of Voting Delegate for the League of California Cities Annual Conference 10. Adoption of an Ordinance Approving and Adopting a Plan for Improvements to Cogswell Plaza 11. Approval of a Record of Land Use Action for the Reconstruction of the Historic Residence at 564 University Avenue 12. Adoption of a Resolution to Authorize the City Manager to Purchase Electricity Resource Adequacy Capacity Products for Calendar Year 2013 in an Amount Not to Exceed $2 Million 13. Submittal of Mitchell Park Library and Community Center Bi-Monthly Construction Contract Report 14. Approval of an Agreement with Van Scoyoc Associates Inc. for Up to Three Years in an Amount not to Exceed a Total of $303,000 for Federal Legislative Representation 15. Direction to City Clerk to Use the Secretary of States' Randomized Alphabet Drawing for the Order of Candidates' Names on the November 6, 2012 Ballot 16. Policy and Services Committee Recommendation to Accept the Policy for Administering the Employee Ethics Hotline 3 July 23, 2012 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Agenda Changes, Additions and Deletions HEARINGS REQUIRED BY LAW: Applications and/or appellants may have up to ten minutes at the outset of the public discussion to make their remarks and put up to three minutes for concluding remarks after other members of the public have spoken. OTHER AGENDA ITEMS: Public comments or testimony on agenda items other than Oral Communications shall be limited to a maximum of three minutes per speaker. Action Items Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials, Unfinished Business and Council Matters. 17. Adoption of a Resolution Amending Section 1401 of the Merit System Rules and Regulations to Adopt a New Memorandum of Agreement with Service Employees' International Union Local 521 18. Adoption of a Resolution Implementing Terms for Police Managers’ Association Pursuant to Government Code Section 3505 19. Finance Committee recommendation to reconfigure the Palo Alto Golf Course, and staff recommendation to negotiate an amendment to existing contract with Golf Course Architect Forest Richardson & Associates to complete Finance Committee's recommended design and environmental impact analysis for up to $336,835 20. Consideration of a Vote of Support for the Revote High Speed Rail Initiative 21. Public Hearing: Adoption of a Resolution Confirming Weed Abatement Report and Ordering Cost of Abatement to be a Special Assessment on the Respective Properties Described Therein 22. Approval of Detailed Sidewalk and Plaza Design for California Avenue Transit Hub Corridor Streetscape Improvements Project 23. Public Hearing: Proposed Revenue Increases and Expenditure Reductions for Animal Services 4 July 23, 2012 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Council Member Questions, Comments and Announcements Members of the public may not speak to the item(s) Adjournment AMERICANS WITH DISABILITY ACT (ADA) Persons with disabilities who require auxiliary aids or services in using City facilities, services or programs or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact (650) 329-2550 (Voice) 24 hours in advance. PUBLIC COMMENT Members of the Public are entitled to directly address the City Council/Committee concerning any item that is described in the notice of this meeting, before or during consideration of that item. If you wish to address the Council/Committee on any issue that is on this agenda, please complete a speaker request card located on the table at the entrance to the Council Chambers, and deliver it to the City Clerk prior to discussion of the item. You are not required to give your name on the speaker card in order to speak to the Council/Committee, but it is very helpful. 5 July 23, 2012 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Additional Information Standing Committee Packets City Council Rail Committee Meeting Schedule of Meetings Schedule of Meetings Tentative Agenda Tentative Agenda Informational Report Informational Report on Installation of Trash Capture Devices in the Municipal Storm Drain System as Part of Palo Alto's Short-Term Trash Reduction Plan City of Palo Alto Investment Activity Report for the Fourth Quarter, Fiscal Year 2012 Final Retiree Medical Actuarial Report Palo Alto Measures for November 6, 2012 Notice of Vacancy on the Library Advisory Commission for One Unexpired Term Ending on January 31, 2014 2012: The Year We Embrace and Begin Implementation of Open Data in Palo Alto Public Letters to Council Set One Set Two CITY OF PALO ALTO OFFICE OF THE CITY CLERK July 23, 2012 The Honorable City Council Palo Alto, California Appointment To The Planning And Transportation Commission For One Unexpired Term Ending On July 31, 2013 On July 2, 2012 Council was to vote to appoint one unexpired term on the Planning and Transportation Commission. No candidate received the required majority votes for appointment. Council directed the City Clerk to set an interview with Henry Wong, who was unable to interview previously. On July 16, 2012 Council interviewed the final candidate, Henry Wong. On July 23, 2012 Council is scheduled vote to appoint a candidate from the remaining pool of candidates, listed below. Michael Alcheck Susan Fineberg Doria Summa Mark Weiss Henry Wong The appointed candidate will serve in the unexpired term beginning immediately and ending on July 31, 2013. ATTACHMENTS:  Alcheck Application (PDF)  Fineberg Application (PDF)  Summa Application (PDF)  Weiss Application (PDF)  Wong Application (PDF)  Public Letters (PDF) Department Head: Donna Grider, City Clerk Updated: 7/18/2012 10:30 AM by Donna Grider Page 2 CITY OF PALO ALTO PLANNING AND TRANSPORTATION COMMISSION Please Return to: Office of the City Clerk 250 Hamilton Avenue Palo Alto,CA 94301 650-329-2571 SUPPLEMENTAL OUESTIONNAIRE Name: Michael Alcheck Date: 4/20/2012 Please print or type your answers to the following questions and submit with your completed application. You may submit additional sheets,ifnecessaty, to complete your answers. 1. Have you attended the following meeting? Yes No • Planning & Transportation Commission D (Date: ______ --010 [lJ 2. How did you Learn about the vacancy on the Planning and Transportation Commission? Rotaty Club: D Palo Alto Weekly: D The Daily Post: D Email from City Clerk: [l] AlA: D FlyerlBookmark: D Other, Please Specify: forwarded to me by Ronit Bodner (City of Los Altos Planning Commissioner) 3. Describe your involvement in community activities, volunteer and civic organizations: I am involved in the San Francisco chapter of ULI (Urban Land Institute), particularly within the Young Leaders Group. ULI's mission is to provide leadership in the responsible use of land and in creating and sustaining thriving communities worldwide. This is achieved by providing pragmatic land use expertise and education to the public and private sector. I am currently fulfilling my first term as a member of the San Francisco Board of Directors of the JCRC (Jewish Community Relations Council) and serve on the Legislative Affairs Committee. I am an active member of the San Francisco Young Leadership Development Program of AI PAC (American Israel PubliC Affairs Committee). I am an active participant in community improvement organizations such as Rebuilding Together SF and Oakland, which mobilize teams of volunteers to revitalize low income neighborhoods by repairing homes and renovating schools. 4. What is it about the Planning & Transportation Commission that interests you? What qualities, experience and expertise would you bring to the Planning & Transportation Commission? The Commission Is responsible for making recommendations to the Council on Issues related to dlMllopmsnt. zoning and transportation, all of which are of tramsndous importance to the success and vibrancy of Palo Alto. This Is a significant responslbllHy and one that I believe I am I equipped to lake on and eager to get involved with. As an attomay, I have experience with understanding codes and ordinances and distinguishing between instancas where tha letter of the law leaves no room for Interpretation on a matter and where the language is wrillen in such a way as to permit discretion. I also can appreciate that thera may be insiances the Commission will be presan\&d with a proposed code amendmsnt which requires not just a review and analysis of how \he amendment would all'ect an Individual project but \he broadar community. In managing litigation for years, I have experience in mediating between conftlcllng parties to reach a mutually beneficial resolution when possible. Altha same tima, I understand that fi is not alwayS posslbla and I am comfortable making decisions that reaolve matters one Wf!I/ or the other. . As a real estate professional with an MBA, I u(lClerstand \he implications that a Commission's decisions haw on future development and how important our buslnass community is to the vibrancy of the greater c:ommunity. I have familiarity with addressing subclvision Issues, variance reques1s, and topography challenges \hat are Involvad In building. I also appreciate \ha value of promoting c:ontinully in planning decisions to encourage and maintain the charaCler and quality of existing neillhborhoods. At the sams time, I think Ingenuity in planning and embracing new design Ideas is not inconsistent with that effort. Finally, I have a particular Intarest In encouraging ngreen" design and conatniction that tries to minimize the ecological footprint of a project. Bds/Commissions -702-23 9/1/2011 5. How would you see your role as board member when recommending policy and working with the Council? Ifit were necessary to change current roles, how would you approach making such changes? As a commissioner I would hope to delve deep into the issues before the Commission to enable me to advise the Council on matters related to land use, land development and transportation in Palo Alto with the ultimate goal of being able to assess the current and future needs of Palo Alto and provide the mechanisms to see that those Identified needs are met and to insure that the Council protects and enhances the physical character ofthe City. As a commission member, I think one has to have a passion for his or her community and a willingness to develop an in-depth understanding of the planning code In order to effectively consider how decisions before iIIe commission will affect the community. A commission member must work closely with city planners to understand their recommendations at the same time being respectful and eager to leam the opinions expressed by residents and fellow Commissioners at public hearings. Regularly, I presume, a commission member must be willing to make difficult choices that will satisfy some, but not all, in the community. When recommendations are then referred to the Council, my hope would be that the CommiSSion will have clearly articulated its rationale for a decision that provides clarity and conSistency to the CounCil as well as members of the community. 6. What are the current issues facing the Planning & Transportation Commission? I understand that some. of the specific matters coming before the Commission include: (1) the safety and access of the rail corridor, (2) pedestrian and bicycle transportation, (3) the Draft Housing Element, and, (4) the Valley Transit Authority's Bus Rapid Transit project for EI Camino Real. Broader issues that the Commission faces, among others, include investigating and making recommendations to the City Council regarding reasonable and practical means for implementing the general plan or elements of the general plan, so that it will serve as an effective guide for the orderly growth and development, preservation and conservation of open space and natural resources, and the ,efficient expenditure of public funds relating to the subjects addressed in the general plan. 7. If appointed, what specific goals would you like to see the Planning & Transportation Commission achieve? I am excited for the Commission to further the Council's goal of renewal with respect to the City's infrastructure. As someone who grew up in this area, now that I have moved back to make my home here in Palo Alto with my wife and daughter, I am very interested in the effort to revitalize Palo Alto's infrastructure and further insure that the City remains a wonderful place to live and work in for many years to come. I am interested in seeing the Commission further the growth, popularity and safety of "green" transportation solutions so that a greater number of our residents and daily visitors can easily access the City in a variety of efficient ways. I am also interested in encouraging ways to make our public spaces more accessible and inviting t6 the broadest range of our community as well as encouraging green design and development. Finally, I would like to help further Palo Alto's status as a global center for innovative employers by working creatively to solve traffic and congestion issues that might threaten this status. Bds/Commissions -702-23 9/1/2011 CALIFORNIA CODES GOVERNMENT CODE SECTION 6250-6270: http://www.leginfo.ca.gov 6254.21. (a) No state or local agency shall post the home address or telephone number of any elected or appointed official on the Internet without first obtaining the written permission of that individual. (b) No person shall knowingly post the home address or telephone number of any elected or appointed official, or of the official's residing spouse or child, on the Internet knowing that person is an elected or appointed official and intending to cause imminent great bodily harm that is likely to occur or threatening to cause imminent great bodily harm to that indiVidual. A violation of this subdivision is a misdemeanor. A violation of this subdivision that leads to the bodily injury of the offiCial, or his or her residing spouse or child, is a misdemeanor or a felony. (c) (1) (A) No person, business, or association shall publicly post or publicly display on the Internet the home address or telephone number of any elected or appOinted official if that official has made a written demand of that person, business, or association to not disclose his or her home address or telephone number. (6) A written demand made under this paragraph by a state constitutional officer, a mayor, or a Member of the Legislature, a city council, or a board of supervisors shall include a statement describing a threat or fear for the safety of that offiCial or of any person residing at the official's home address. (C) A written demand made under this paragraph by an elected official shall be effective for four years, regardless of whether or not the official's term has expired prior to the end of the four-year period. (D) (I) A person, business, or association that receives the written demand of an elected or appointed official pursuant to this paragraph shall remove the offiCial's home address or telephone number from public display on the Internet, including Information provided to cellular telephone applications, within 48 hours of delivery of the Written demand, and shall continue to ensure that this information is not reposted on the same Internet Web site, subsidiary Site, or any other Internet Web site maintained by the recipient of the written demand. (ii) After receiving the elected or appOinted official's written demand, the person, business, or association shall not transfer the apPOinted or elected official's home address or telephone number to any other person, buSiness, or association through any other medium. (iii) Clause (ii) shall not be deemed to prohibit a telephone corporation, as defined in Section 234 of the Public Utilities Code, or its affiliate, from transferring the elected or apPOinted official's home address or telephone number to any person, buSiness, or association, if the transfer is authorized by federal or state law, regulation, order, or tariff, or necessary in the event of an emergency, or to collect a debt owed by the elected or apPOinted offiCial to the telephone corporation or its affiliate. (E) For purposes of this paragraph, "publicly post" or "publicly display" means to intentionally communicate or otherwise make available to the general public. (2) An offiCial whose home address or telephone number is made public as a result of a Violation of paragraph (1) may bring an action seeking injunctive or declarative relief in any court of competent jurisdiction. If a court finds that a violation has occurred, it may grant injunctive or declarative relief and shall award the official court costs and reasonable attorney's fees. A fine not exceeding one thousand dollars ($1,000) may be imposed for a violation of the court's order for an injunction or declarative relief obtained pursuant to this paragraph. (3) An elected or appOinted official may deSignate in writing the official's employer, a related governmental entity, or any voluntary professional association of similar officials to act, on behalf of that official, as that official's agent with regard to making a written demand pursuant to this section. A written demand made by an agent pursuant to this paragraph shall include a statement describing a threat or fear for the safety of that official or of any person residing at the official's home address. (d) (1) No person, business, or association shall soliCit, sell, or trade on the Internet the home address or telephc:me number of an elected or appOinted official with the intent to cause imminent great bodily harm to the official or to any person residing at the official's home address. (2) Notwithstanding any other law, an official whose home address or telephone number is solicited, sold, or traded in violation of paragraph (1) may bring an action in any court of competent jurisdiction. If a jury or court finds that a Violation has occurred, It shall award damages to that official in an amount up to a maximum of three times the actual damages but in no case less than four thousand dollars ($4,000). (e) An interactive computer service or access software provider, as defined in Section 230(f) of Title 47 of the United States Code, shall not be liable under this section unless the service or provider intends to abet or cause Imminent great bodily harm that is likely to occur or threatens to cause imminent great bodily harm to an elected or appOinted official. (f) For purposes of this section, "elected or apPOinted offiCial" includes, but is not limited to, all of the following: (1) State constitutional officers, 2) Members of the Legislature, (3) Judges and court commissioners, (4) District attorneys, (5) Public defenders, (6) Members of a city council, (7) Members of a board of supervisors, (8) AppOintees of the Governor, (9) Appointees of the Legislature, (10) Mayors, (11) City attorneys, (12) Police chiefs and sheriffs, (13) A public safety offiCial, as defined in Section 6254.24, (14) State administrative law judges, (15) Federal judges and federal defenders, (16) Members of the United States Congress and appOintees of the President. (g) Nothing in this section is intended to preclude punishment instead under Sections 69, 76, or 422 of the Penal Code, or any other provision of law. . Bds/Commissions -702-23 9/1/2011 Planning and Transportation Commission CITY OF PALO ALTO [~f.1), Oi~ PAL-O ALTO, CA 1I1 Y CLEf~K'S OFFI GE 12 APR 20 PM 2: 04 BOARD AND COMMISSION APPLICATION SUBMIT TO: Office of the City Clerk 250 Hamilton Avenue, Palo Alto, CA 94301 (650) 329-2571 Please print or type answers to all questions and place Nt A in those areas that do not apply. Be sure that you fill out the attached supplement and return it with your signed application. NAME: Fineberg Last Susan First RESIDENCE 361 .. Tioga Court ADDRESS: __________________________________ __ Street Palo Alto, CA 94306 City State Zip Education: HOME PHONE: 650-858-0888 WORK PHONE: ____________ __ CELL PHONE: -------------- EMAIL: Susan@Fineberg.net Cornell University, Johnson Graduate School of Management, M.B.A Smith College, B.A. economics Holton-Arms School, H S List relevant training and experience, certificates of training, licenses, or professional registration: Planning Commission, Vice Chair, 2011-2012 Planmng ComrrusSJOn, Mei1lber, 2008-2011 I iaison to HOLlsing Element Technical Advisory GeQ! 'P (TAG), 2008-2012 Liaison to Councils' Housing Needs Mandate Committee, 2012 PTC Transportation Sub-Committee, 20 12 PTC Report to Council Sub-Committee, 2008, 2009, 2011 , 2012 PTC CIP Sub-Committee, 2009-2011 • Are you a Palo Alto Resident? • Do you have any relatives or members of your household who are employed by the City of Palo Alto, who are currently serving on the City Council, or who are board members or commissioners? • Are you available and committed to complete the term applied for'? • California state law requires appointed board and commission members to file a detailed disclosure of their financial interests, Fair Political Practices Commission, Conflict of Interest, Form 700. Do you have an investment in, or do you serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to; 1) engage in business with the City, 2) provide products or servjces for City projects, or 3) be affected by decisions ofthe board or commission you are applying for? If you answered yes, you may wish to consult with the City Attorney before filing this application. Please contact the City Attorney's Office at 650-329-2171. • Excluding your principal residence, do you own real property in Palo Alto or within two miles of Palo Alto? EMPLOYMENT x x x x x Presentorlastemployer 3Corn Palm Computing Name ofCOlnpany: Occupation: Accounting Manager (lfretired, indicate former occupation) Signature of Applicant .~ __ ~ __ . _, -~...;::~~~.:;........:;/_<',,-,-,,::....o.o:_--:::;;o11'=-Date: April 16 t 2012 CITY OF PALO ALTO PLANNING AND TRANSPORTATION COMMISSION Please Return to: Office of the City Clerk 250 Hamilton Avenue Palo Alto, CA 94301 650-329-2571 SUPPLEMENTAL QUESTIONNAIRE Name: Susan Fineberg Date: April 16, 2012 Please print or type your answers to the following questions and submit with your completed application. You may submit additional sheets, if necessary, to complete your answers. 1. Have you attended the following meeting? Yes • Planning & Transportation Commission ~ No (Date: 2006-present) 2. How did you Learn about the vacancy on the Planning and Transportation Commission? Rotary Club: __ Palo Alto Weekly: __ Palo Alto Weekly Online: __ Email from City Clerk: __ AlA: Fogster.com: Other, Please Specify: incumbent ------------------------------------------------------ 3. Describe your involvement in community activities, volunteer and civic organizations: Planning Commission 200B-present JLS Middle School, pTA Volunteer 2011-present Palo \terde Elementary School, PTA and classroom vohlOteer, 2004-present Palo Verde Residents Association, Treasurer and Board Member 2006-2009 Palo Alto Neighborhoods (PAN), Designated Rep. from PVRA 2006-2009 Palo Alto Council of PTAs Nominating Committee, Palo Verde Delegate. 200B PAMP Parents' Club, Member Finance Committee, 2006-2007 PAMP Patellts' Club, TleasUle alld Boatd Membal, 2004-2006 4. What is it about the Planning & Transportation Commission that interests you? What qualities, experience and expertise would you bring to the Planning &. Trans.portation Commission? See Attached 5. How would you see your role as board member when recommending policy and working with the Council? If it were necessary to change current roles, how would you approach making such changes? See Attached 6. What are the current issues facing the Planning & Transportation Commission? 7. If appointed, what specific goals would you like to see the Planning & Transportation Commission achieve? City of Palo Alto 250 Hamilton Avenue Palo Alto, CA 94301 CONSENT FORM SLF I have read and understand my rights under Government Code Section 6254.21. I wish to provide my written permission to the City of Palo Alto to post my home address and telephone number on the City's website. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. __ I do not give permission for the City of Palo Alto to post my home address, telephone number, and email to the internet and request that they use the following contact information instead. 361 Tioga Court, Palo Alto, CA 94306 Address 650-858-0888 Phone Susan@Fineberg.net Email Susan L. Fineberg Print Name -~£,~~ Signature April 16, 2012 Date CAliFORNIA CODES GOVERNMENT CODE SECTION 6250-6270: http://www.leginfo.ca.gov 6254.21. (a) No state or local agency shall post the home address or telephone number of any elected or appointed official on the Internet without first obtaining the written permission of that individual. (b) No person shall knowingly post the home address or telephone number of any elected or appointed offiCial, or of the official's residing spouse or child, on the Internet knowing that person is an elected or appointed offiCial and intending to cause imminent great bodily harm that is likely to occur or threatening to cause immtnent great bodily harm to that individual. A violation of this subdivision is a misdemeanor. A violation of this subdivision that leads to the bodily injury of the official, or his or her residing spouse or child, is a misdemeanor or a felony. (c) (1) (A) No person, business, or association shall publicly post or publicly display on the Internet the home address or telephone number of any elected or appointed official if that offiCial has made a written demand of that person, bUSiness, or association to not disclose his or her home address or telephone number. (8) A written demand made under this paragraph by a state constitutional officer, a mayor, or a Member of the legislature, a city council, or a board of supervisors shall include a statement describing a threat or fear for the safety of that official or of any person residing at the offiCial's home address. (C) A written demand made under this paragraph by an elected official shall be effective for four years, regardless of whether or not the official's term has expired prior to the end of the four-year period. (D) (i) A person, business, or association that receives the written demand of an elected or apPOinted official pursuant to this paragraph shall remove the official's home address or telephone number from public display on the Internet, including information provided to cellular telephone applications, within 48 hours of delivery of the written demand, and shall continue to ensure that this information is not reposted on the same Internet Web site, subsidiary site, or any other Internet Web site maintained by the recipient of the written demand. (ii) After receiving the elected or apPOinted official's written demand, the person, bUSiness, or association shall not transfer the aPPointed or elected official's home addressor telephone number to any other person, business, or association through any other medium. (iii) Clause (ii) shall not be deemed to prohibit a telephone corporation, as defined in Section 234 of the Public Utlfities Code, or its affiliate, from transferring the elected or appOinted offiCial's home address or telephone number to any person, business, or aSSOCiation, if the transfer is authorized by federal or state law, regulation, order, or tariff, or necessary in the event of an emergency, or to collect a debt owed by the elected or appOinted official to the telephone Corporation or its affiliate. (E) For purposes of this paragraph, "publicly post" or "publicly display" means to intentionally communicate or otherwise make avaiJable to the general public. (2) An official whose home address or telephone number is made public as a result of a violation of paragraph (1) may bring an action seeking injunctive or declarative relief in any court of competent jurisdiction. If a court finds that a violation has occurred, it may grant injunctive or declarative relief and shall award the official court costs and reasonable attorney's fees. A fine not exceeding one thousand dollars ($1,000) may be imposed for a violation of the court's order for an injunction or declarative relief obtained pursuant to this paragraph. (3) An elected or apPOinted offiCial may deSignate in writing the official's employer, a related governmental entity, or any voluntary professional association of similar officials to act, on behalf of that offiCial, as that offiCial's agent with regard to making a written demand pursuant to this section. A written demand made by an agent pursuant to this paragraph shall include a statement describing a threat or fear for the safety of that official or of any person residing at the official's home address. (d) (1) No person, business, or association shalf solicit, sell, or trade on the Internet the home address or telephone number of an elected or appOinted official with the intent to cause imminent great bodily harm to the official or to any person residing at the official's home address. (2) Notwithstanding any other law, an official whose home address or telephone number is SOliCited, sold, or traded in violation of paragraph (1) may bring an action in any court of competent jurisdiction. If a jury or court finds that a violation has occurred, it shall .award damages to thatofficiaJ in an amount up to a maximum of three times the actual damages but in no case less than four thousand dollars ($4,000). (e) An interactive computer service or access software proVider, as defined in Section 230(f) of Title 47 of the United States Code, shall not be liable under this section unless the service or provider intends to abet or cause imminent great bodily harm that is likely to occur or threatens to cause imminent great bodily harm to an elected or appointed offiCial. (f) For purposes of this section, "elected or apPOinted official" includes, but is not limited to, all of the following: (1) State constitutional officers, 2) Members of the Legislature, (3) Judges and court commissioners, (4) District attorneys, (5) Public defenders, (6) Members of a city counCil, (7) Members of a board of supervisors, (8) AppOintees of the Governor, (9) ApPOintees of the Legislature, (10) Mayors, (11) City attorneys, (12) Police chiefs and sheriffs, (13) A public safety offiCial, as defined in Section 6254.24, (14) State administrative law judges, (15) Federal judges and federal defenders, (16) Members of the United States Congress and appOintees of the PreSident. (g) Nothing in this section is intended to preclude punishment instead under Sections 69, 76, or 422 of the Penal Code, or any other provision of law. City of Palo Alto, Board and Commission Application Planning and Transportation Commission Supplemental Questionnaire Susan L. Fineberg 4. What is it about the Planning & Transportation Commission that interests you? What qualities, experience and expertise would you bring tcJ the Planning Commission? I would like to continue my service on the Planning and Transportation Commission so I can help the City develop a vision of what Palo Alto will look like in 10-20 years, and beyond. There are several major issues that the City continues to confront relating to housing growth, economic vitality, infrastructure adequacy, and the impacts of these on our natural and built environment. I would like to be a part of finding solutions that will make Palo Alto a better place for us and future generations. My world view has been shaped by my exposure to planned communities as a child growing up in Greenbelt, MD and as an adult vacationing in Rosemary Beach, FL. This exposure gives me an understanding of how planning the growth of housing, commercial, transportation, networks of sidewalks and bike paths, schools, open-spaces, libraries, and public gathering spaces can contribute to the quality of life. The amenities that accompany properly planned growth blunt the impact of increased density and enhance the built environment. The experience and institutional memory that I have gained in my four years of service on the Planning Commission means that I am familiar with the public hearing process, the City's Comprehensive Plan, Municipal Code, policies, and protocols. I am able to distill the essential information from large volumes of materials, analyze the data, and see the details in context of the big picture. In addition to a keen understanding of the benefits of town planning, I also bring a strong set of analytical skills and policy planning experience. These are skills that I have honed in both my professional career and volunteer experiences. I am aware of the issues and concerns expressed by members of our community. I also have the proven ability to work well with others in collaborative and deliberative processes. 1 City of Palo Alto, Board and Commission Application Planning and Transportation Commission Supplemental Questionnaire Susan L. Fineberg 5. How would you see your role as board member when recommending policy and working with the Council? If it were necessary to change current roles, how would you approach making such changes? When recommending policy and working with Council, it is a great honor and responsibility, to represent all the constituents of Palo Alto. My role is to learn, ask questions, distill the infonnation available, and comply with pertinent codes and ordinances to craft recommendations for policies and decisions. If it were necessary to change current roles, then I would first need to understand what was driving the need for change. After learning more about what the goals are, and how other comparable cities handle similar issues, I would only then consider how to make such changes. Change can be good, but it can also be unsettling and can cause harm if it is done without due diligence. 6. What are the current issues facing the Planning & Transportation Commission? The biggest issue facing the Planning & Transportation Commission is the Comprehensive Plan Amendment. In particular, the Housing Element Update and our response to the Regional Housing Needs Mandate will greatly impact Palo Alto over the next decade. There will be significant projects coming forward that will have wider community impacts like the Rail Corridor Study, California Avenue Streetscape Improvements,. Downtown Parking Studies, VTA Bus Rapid Transit, Safe Routes to School Program, Phase 2 of Charleston- Arastradero Corridor Improvements, 27 University Avenue/TheaterWorks, and a new Public Safety Building. The Planning & Transportation Commission will recommend how the City can balance the need for housing (affordability, size, and location) while maintaining the features that provide us with the quality of life that we desire. These include quality schools, open-spaces, libraries, public safety, environmental stewardship, and sound fiscal policy and management. The Planning & Transportation Commission will continue to respond to priorities set by Council on issues such as environmental stewardship, land-use and transportation, and improved communication via the "Planning & Transportation Commission Report to Council". 2 City of Palo Alto, Board and Commission Application Planning and Transportation Commission Supplemental Questionnaire Susan L. Fineberg 7. If appointed, what specific goals would you like to see the Planning & Transportation Commission achieve? I would like to help the Planning & Transportation Commission achieve the following goals: • Finish the Comprehensive Plan Update: articulate a vision of what Palo Alto will look like in 10-20 years, and beyond. • Focus on maintaining quality oflife, which includes environmental stewardship and finding ways to grow the city without compromising those qualities. • Work with City Staff to fmd ways to engage the public and increase public participation at various stages of project planning and policy formulation. • Continue to improve communication between the Planning & Transportation Commission and Council so the Planning & Transportation Commission can identify and communicate emerging trends, which would facilitate pro-active planning by Council. The City continues to face some tough choices about growth, housing, transportation, public facilities, and infrastructure. The Comprehensive Plan is the primary tool for guiding the future development of the City. I would like to help finish this update. I would like to help build a better community, to protect the environment, to provide diverse and affordable housing opportunities, to rebuild infrastructure, and to enhance the economic vitality of Palo Alto. Thank you! Susan 3 CITY OF PALO ALTO PLANNING AND TRANSPORTATION COMMISSION Please Return to: Office of the City Clerk 250 Hamilton Avenue Palo Alto, CA 94301 650-329-2571 SUPPLEMENTAL OUESTIONNAIRE Name: Doria Summa Date: April 20, 2012 Please print or type your answers to the following questions and submit with your completed application. You may submit additional sheets, if necessary, to complete your answers. 1. Have you attended the following meeting? Yes No • Planning & Transportation Commission ~ (Date: Many: 2007-Present) 2. How did you Learn about the vacancy on the Planning and Transportation Commission? Rotary Club: __ Email from City Clerk: ~ Palo Alto Weekly: __ Palo Alto Weekly Online: __ AlA: Fogster.com: __ Other, Please Specify: _________________________ _ 3. Describe your involvement in community activities, volunteer and civic organizations: I am presently serving as a member of the Development Center Customer Advisory Group (DCA-e) as a lesidellt lepl eselltative. I alillookillg fal wald to cOlililluilig to collliibute as U Ie development center improvement project moves forward. I have been engaged in the College I errace ReSidents' ASSOCiation (C I RAJ both as a volunteer and as a board member. I hrougn my activities in the CTRA, I became involved in many other community activities. As part of these activities, I have attended and contributed to a wide variety of community meetings ranging from City Council meetings to Planning and Transportation Committee Meetings to palo Alto Neighborhoods (PAN) meetings. I have worked with city staff to help design and Implement neigRseFReed PF9gFaR=lS 61::19h as the College TeFFage TFaffi9 Calming PF9gFaFA and tRe Cellege Terrace Residential Parking Permit Program. 4. What is it about the Planning & Transportation Commission that interests you? What qualities, experience and expertise would you bring to the Planning & Transportation Commission? As a 25 year resident of Palo Alto, I have a great appreciation for the quality of life that we enJoy. We are fortunate to live In a setting of tremendous natural beauty and we are the beneficiaries of thoughtful planning by previous city administrations. I believe that maintaining our quality of life will require a careful balance among the needs of busiflesses, resideftts 8f1d the efl'9'iFefimefit. I am iflterested ifl ·tvorkiflg eft the Comprehensive Plan Update that will reflect this balance. I am paSSionate about maintaining these high standards for all stakeholders. Through my CIVIC engagement, I have gained a deep appreciation for the importance of good planning and the complexity of the decisions involved. 5. How would you see your role as board member when recommending policy and working with the Council? If it were necessary to change current roles, how would you approach making such changes? I believe that the primary role of a Commission member is to evaluate proposed projects with respect to their consistency with City policies and the Comprehensive Plan The Commission seO/es as an advisory body to the City COl lOci I regarding planning and transportation matters including: land use. development and zoning. The City Council retains decision-making authority on all of theSe matters. 6. What are the current issues facing the Planning & Transportation Commission? I believe that some of the key issues currently facing the Planning and r ransportatlon Commission are: -Comprebensive Plan Ilpdate. -Regional housing needs allocation (RHNA). -High-speed rail and Calttaih, -Transportation planning. -Housing element update. 7. If appointed, what specific goals would you like to see the Planning & Transportation Commission achieve? The Commission should work to maintain the appropriate balance between the built environment and the natural environment --that IS enabling economic Vitality and growtb while preseodng the character and "feel" of Palo Alto I would like to see the commission promote community involvement: getting members of the public more Involved In planning ISSUeS In a poSitive way and earlY In the process. CALIFORNIA CODES GOVERNMENT CODE SECTION 6250-6270: http://www.leginfo.ca.gov 6254.21. (a) No state or local agency shall post the home address or telephone number of any elected or appointed official on the Internet without first obtaining the written permission of that individual. (b) No person shall knowingly post the home address or telephone number of any elected or appointed official, or of the official's residing spouse or child, on the Internet knowing that person Is an elected or appointed official and intending to cause imminent great bodily harm that is likely to occur or threatening to cause imminent great bodily harm to that individual. A violation of this subdivision Is a misdemeanor. A violation of this subdivision that leads to the bodily injury of the official, or his or her residing spouse or child, is a misdemeanor or a felony. (c) (1) (A) No person, bUSiness, or association shall publicly post or publicly display on the Internet the home address or telephone number of any elected or apPOinted official If that offiCial has made a written demand of that person, bUSiness, or association to not disclose his or her home address or telephone number. (B) A written demand made under this paragraph by a state constitutional officer, a mayor, or a Member of the Legislature, a city council, or a board of supervisors shall include a statement describing a threat or fear for the safety of that official or of any person residing at the official's home address. (C) A written demand made under this paragraph by an elected official shall be effective for four years, regardless of whether or not the official's term has expired prior to the end of the four-year period. (D) (I) A person, business, or association that receives the written demand of an elected or appointed offiCial pursuant to this paragraph shall remove the official's home address or telephone number from public display on the Internet, including information provided to cellular telephone applications, within 48 hours of delivery of the written demand, and shall continue to ensure that this Information is not reposted on the same Internet Web Site, subsidiary site, or any other Internet Web site maintained by the recipient of the written demand. (Ii) After receiving the elected or apPOinted official's written demand, the person, business, or aSSOCiation shall not transfer the apPOinted or elected offiCial's home address or telephone number to any other person, business, or association through any other medium. (iii) Clause (i1) shall not be deemed to prohibit a telephone corporation, as defined in Section 234 of the Public Utilities Code, or its affiliate, from transferring the elected or appOinted official's home address or telephone number to any person, bUSiness, or association, if the transfer is authorized by federal or state law, regulation, order, or tariff, or necessary in the event of an emergency, or to collect a debt owed by the elected or appointed official to the telephone corporation or its affiliate. (E) For purposes of this paragraph, "publicly post" or "publicly display" means to intentionally communicate or otherwise make available to the general public. (2) An official whose home address or telephone number is made public as a result of a violation of paragraph (1) may bring an action seeking injunct:ive or declarative relief In any court of competent jurisdiction. If a court finds that a Violation has occurred, it may grant injunctive or declarative relief and shall award the official court costs and reasonable attorney's fees. A fine not exceeding one thousand dollars ($1,000) may be imposed for a violation of the court's order for an injunction or declarative relief obtained pursuant to this paragraph. (3) An elected or appointed official may deSignate in writing the official's employer, a related governmental entity, or any voluntary professional association of Similar offiCials to act, on behalf of that official, as that official's agent with regard to making a written demand pursuant to this section. A written demand made by an agent pursuant to this paragraph shall include a statement describing a threat or fear for the safety of that offiCial or of any person residing at the official's home address. (d) (1) No person, bUSiness, or association shall SOliCit, sell, or trade on the Internet the home address or telephone number of an elected or appOinted offiCial with the intent to cause imminent great bodily harm to the official or to any person residing at the official's home address. (2) Notwithstanding any other law, an offiCial whose home address or telephone number Is solicited, sold, or traded in violation of paragraph (1) may bring an action In any court of competent jurisdiction. If a jury or court finds that a violation has occurred, it shall award damages to that offiCial in an amount up to a maximum of three times the actual damages but in no case less than four thousand dollars ($4,000). (e) An interactive computer service or access software provider, as defined in Section 230(f) of Title 47 of the United States Code, shall not be liable under this section unless the service or provider Intends to abet or cause imminent great bodily harm that is likely to occur or threatens to cause imminent great bodily harm to an elected or appOinted official. (f) For purposes of this section, "elected or appointed official" includes, but is not limited to, all of the following: (1) State constitutional officers, 2) Members of the Legislature, (3) Judges and court commissioners, (4) District attorneys, (5) Public defenders, (6) Members of a city counCil, (7) Members of a board of supervisors, (8) ApPOintees of the Governor, (9) AppOintees of the Legislature, (10) Mayors, (11) City attorneys, (12) Police chiefs and sheriffs, (13) A public safety official, as defined in Section 6254.24, (14) State administrative law judges, (15) Federal judges and federal defenders, (16) Members of the United States Congress and appOintees of the President. (g) Nothing in this section is intended to preclude punishment instead under Sections 69, 76, or 422 of the Penal Code, or any other provision of law. Doria Summa Application Addendum List Relevant Training and experience, certificates of training, licenses, or professional registration: Board Member and City Observer. College Terrace Residents' Association: 2009-present. Member. Development Center Customer Advisory Group (DCAG): 2010 -present. Delegate. Palo Alto Neighborhoods: 2009 -present. Member. Residential Parking Permit Task Force: 2007-present. Member. 2180 EI Camino Real Task Force: 2007-2010. Member. College Terrace Traffic Calming Task Force: 2007-present. 3. Describe your Involvement in community activities, volunteer and civic organizations: I am presently serving as a member of the Development Center Customer Advisory Group (DCAG) as a resident representative. I am looking forward to continuing to contribute as the development center improvement project moves forward. I have been engaged in the College Terrace Residents' Association (CTRA) both as a volunteer and as a board member. Through my activities in the CTRA, I became involved in many other community activities. As part of these activities, I have attended and contributed to a wide variety of community meetings ranging from City Council meetings to Planning and Transportation Committee Meetings to Palo Alto Neighborhoods (PAN) meetings. I have worked with city staff to help design and implement neighborhood programs such as the College Terrace Traffic Calming program and the College Terrace Residential Parking Permit Program. 4. What is it about the Planning & Transportation Commission that interests you? What qualities, experience and expertise would you bring to the Planning & Transportation Commission? As a 25 year resident of Palo Alto, I have a great appreciation for the quality of life that we enjoy. We are fortunate to live in a setting of tremendous natural beauty and we are the beneficiaries ofthoughtful planning by previous city administrations. I believe that maintaining our quality of life will require a careful balance among the needs of businesses, residents and the environment. I am interested in working on the Comprehensive Plan Update that will reflect this balance. I am passionate about maintaining these high standards for all stakeholders. • Are you a Palo Alto Resident? • Do you have any relatives or members of your household who are employed by the City of Palo Alto, who are currently serving on the City Council, or who are board members or commissioners? • Are you available and committed to complete the term applied for? • California state law requires appointed board and commission members to file a detailed disclosure of their financial interests, Fair Political Practices Commission, Conflict of Interest, Form 700. Do you have an investment in, or do you serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to; 1) engage in business with the City, 2) provide products or services for City projects, or 3) be affected by decisions of the board or commission you are applying for? If you answered yes, you may wish to consult with the City Attorney before filing this application. Please contact the City Attorney's Office at 650-329-2171. • Excluding your principal residence, do you own real property in Palo Alto or within two miles of Palo Alto? EMPLOYM]J;NT Yes No A- K L Present or last employer i--rn-IA I , . r Name of Company: r~d---,!:v",-,----,-,(f,--,,!1L-'L(-,-fS.z...;..1-,f---,-({_~-=D-=-u _<l-,-,l=urv-L-)' Occupation: CO.JJCtpZ P(tc(lt-~ IU iQ (If retired, indicate former occupation) 11 . I ill 11 /if) r. " Signature of Applicant _~-l..VU~"-t' ___ VU"",-~'d4"Y7'I.It!~+. _______ _ Date: <f-36 " ( I CALIFORNIA CODES GOVERNMENT CODE SECTION 6250-6270: http://www.leginfo.ca.gov 6254.21. (a) No state or local agency shall post the home address or telephone number of any elected or appointed official on the Internet without first obtaining the written permission of that individual. (b) No person shall knowingly post the home address or telephone number of any elected or appointed official, or of the official's residing spouse or child, on the Internet knowing that personis an elected or appointed official and intending to cause imminent great bodily harm that is likely to occur or threatening to cause imminent great bodily harm to that individual. A violation of this subdivision _ is a misdemeanor. A violation of this subdivision that leads to the bodily injury of the official, or his or her residing spouse or child, is a misdemeanor or a felony. . (c) (1) (A) No person, business, or association shall publicly post or publicly display on the Internet the home address or telephone number of any elected or appointed official if that official has made a written demand of that person, business, or association to not disclose his or her home address or telephone number. (8) A written demand made under this paragraph by a state constitutional officer, a mayor, or a Member of the Legislature, a city council, or a board of supervisors shall include a statement describing a threat or fear for the safety of that official or of any person residing at the official's home address. (C) A written demand made under this paragraph by an elected official shall be effective for four years, regardless of whether or not the official's term has expired prior to the end of the four-year period. (D) (i) A person, business, or association that receives the written demand of an elected or apPointed official pursuant to this paragraph shall remove the official's home address or telephone number from public display on the Internet, including information provided to cellular telephone applications, within 48 hours of delivery of the written demand, and shall continue to ensure that this information is not reposted on the same Internet Web site, subsidiary site, or any other Internet Web site maintained by the recipient of the written demand. (ii) After receiving the elected or appointed official's written demand, the person, business, or association shall not transfer the appointed or elected official's home address or telephone number to any other person, business, or association through any other medium. (iii) Clause (ii) shall not be deemed to prohibit a telephone corporation, as defined in Section 234 of the Public Utilities Code, or its affiliate, from transferring the elected or appointed official's home address or telephone number to any person, business, or association, if the transfer is authorized by federal or state law, regulation, order, or tariff, or necessary in the event of an emergency, or to collect a debt owed by the elected or appOinted official to the telephone corporation or its affiliate. (E) For purposes of this paragraph, "publicly post" or "publicly display" means to intentionally communicate or otherwise make available to the general public. (2) An official whose home address or telephone number is made public as a result of a violation of paragraph (1) may bring an action seeking injunctive or declarative relief in any court of competent jurisdiction. If a court finds that a violation has occurred, it may grant injunctive or declarative relief and shall award the official court costs and reasonable attorney's fees. A fine not exceeding one thousand dollars ($1,000) may be imposed for a violation of the court's order for an injunction or declarative relief obtained pursuant to this paragraph. (3) An elected or appointed official may designate in Writing the official's employer, a related governmental entity, or any voluntary profeSSional association of similar officials to act, on behalf of that official, as that official's agent with regard to making a written demand pursuant to this section. A written dema·nd made by an agent pursuant to this paragraph shall include a statement describing a threat or fear for the safety of that official or of any person residing at the official's home address. (d) (1) No person, business, or association shall soliCit, sell, or trade on the Internet the home address or telephone number of an elected or appointed official with the intent to cause imminent great bodily harm to the offiCial or to any person residing at the official's home address. (2) Notwithstanding any other law, an official whose home address or telephone number is solicited, sold, or traded in violation of paragraph (1) may bring an action in any court of competent jurisdiction. If a jury or court finds that a violation has occurred, it shall award damages to that official in an amount up to a maximum of three times the actual damages but in no case less than four thousand dollars ($4,000); (e) An interactive computer service or access software provider, as defined in Section 230(f) of Title 47 of the United States Code, shall not be liable under this section unless the service or provider intends to abet or cause imminent great bodily harm that is likely to occur or threatens to cause imminent great bodily harm to an elected or appointed official. (f) For purposes of this section, "elected or appOinted official" includes, but is not limited to, all of the following: (1) State constitutional officers, 2) Members of the Legislature, (3) Judges and court commissioners, (4) District attorneys, (5) Public defenders, (6) Members of a city council, (7) Members of a board of supervisors, (8) Appointees of the Governor, (9) Appointees of the Legislature, (10) Mayors, (11) City attorneys, (12) Police chiefs and sheriffs, (13) A public safety official, as defined in Section 6254.24, (14) State administrative law judges, (15) Federal judges and federal defenders, (16) Members of the United States Congress and appOintees of the President. (g) Nothing in this section is intended to preclude punishment instead under Sections 69, 76, or 422 of the Penal Code, or any other provision of law. Page 2 of2 for applications is 5:30 pm ~n April 20,2012. If an incumbent does not reapply, the application deadline for that commission will extend to 5:00 pm on April 25, 2012. Thanks! Ronna Jojola Gonsalves Deputy City Clerk I City of Palo Alto 250 Hamilton Avenue I Palo Alto, CA 94301 650~329-2267 I ronna.gonsalves@cityofpaloalto.org I www.cityofpaloalto.org\clerk You are receiving this email because you have expressed interest in Palo Alto Boards and Commissions in the Past, or as a member of a Neighborhood Association distribution list. If you would prefer to not receive emails regarding future recruitments, please reply to this email and I will delete your name from my distribution list, if applicable. 4/20/2012 · ...... ---_ ..... , ........... --...... ,," .,,' -, ....... . ~ ........•...... ····················~···voI .ad.~·.. .' l·~·,a ,. ··ot ... ·~~--.PnMissIilriiIr~.aka ~.~~(ww...~Q;rn} •......................... '.' '.' '~'. ' .. . ., .. [amAdVtaorto~Of~.~~of~, '(k" i .... JkW:1~iqns, ... <?Q2 -33 .-'-,.'-,-,.. . ._. -',", ... '/1/2011 . '. ~ . ~ -.-' . ' ..... -'.~ ---\:' . ,'i· .-,·_C."'_,·, ", ',.-" ',,'..... :":.,._' '.' ',_, '-, -,', .-____ .'. &!£a,.,- . . -., . . 81~:Mi_ct •• ! • .. ~.tbis;.penn_kJnat.l1yt1mebyj)r(Nfdr.WtJttennQtkteb)thePaIcIAto Ci.tfa~. .. . .. .. .... '. OR l'"tlll_H~.~, request that the gt.yotPalo. AItoredact~.hO~ .. ,~~.p~.·.n~~,.~ .. ··.~l~ress .·fFom .• ·tt.e:'~ .••• BOa~ .•• a~d COt.'nQ1II1lOA.~ priot"topQSting tot~Qt;y'$WebSIIt~ .•. ,providing the . • ·r~'Zd~fomlatJon,,·.ajut .•.. ~ueSt·~.··~··."" .• fJ1~'tOlkwlJng ··b)ritatt.·· Garage Tech n 0 logy Ve ntu resSM Henry H. Wong -Venture Partner Henry@garage.com Henry H. Wong has been a prolific and successful entrepreneur, executive, and venture investor in Silicon Valley for over 25 years. Henry applies his operational experience, investment talent, and his China expertise to advise, invest in, and build high technology companies with a global vision. He is the founder of Diamond TechVentures, and was a venture partner at Crystal Ventures, where he was actively involved with companies including SMIC, LGC Wireless & Infmera. As an entrepreneur, Henry has had several significant successes, including SS8 Networks Inc., where he was the founder, CEO and Chairman, as well as IP Communications, XaQti Semiconductor, CNet Technology Inc., and Combinet (ISDN Systems), all of which he co-founded and led. In 2002, Henry was a finalist for the Ernst & Young "Entrepreneur of the Year Award." He is an advisor to several non-profit organizations and is active in community organizations. Henry holds a B.Sc. degree in Business from the University of Utah and a MBA in Telecom Management from Golden Gate University. He is also a Mentor in the Stanford Graduate School of Business GSB S-356 MBA Program, and a Team Mentor in the Technology Venture Formation course MS&E 273 & E145 at Stanford's School of Engineering. City of Palo Alto (ID # 2960) City Council Staff Report Report Type: Consent Calendar Meeting Date: 7/23/2012 July 23, 2012 Page 1 of 3 (ID # 2960) Summary Title: Internet Systems Consortium Master Services Agreement Title: Request for Approval of Master Service Agreement Between the City of Palo Alto and Internet Systems Consortium, Inc. For Internet Connectivity Services From: City Manager Lead Department: IT Department Recommendation Staff recommends that the Council approve a master services agreement between the City of Palo Alto and the Internet Systems Consortium, Inc. for internet connectivity and transit services, and authorize the City Manager or his designee to sign the agreement in the amount of approximately $20,000 per year, for a five-year term. Discussion As part of an unofficial arrangement, ISC has been providing Internet access to the City of Palo Alto for approximately 17 years. In April 2011, ISC agreed that it would continue to provide Internet connectivity to the City until either a formal agreement was developed or until the City transitioned to a new Internet service provider. On November 2011, the City issued a request for proposals (RFP) for Internet connectivity and transit services. Summary of Solicitation Process Proposal Description Proposed Length of Project 36 months Number of Proposals Mailed 12 Total Days to Respond to Proposal 26 Pre-proposal Conference Date November 17, 2011 Number of Attendees 5 Number of Proposals Received 5 Company Name Location July 23, 2012 Page 2 of 3 (ID # 2960) 1. Internet Systems Consortium Redwood City, CA 2. Fiber Internet Center Palo Alto, CA 3. Integra Telecom Sacramento, CA 4. Unwired Ltd. Berkeley, CA 5. Sonic Santa Rosa, CA Range of Proposal Amounts $800 to $2,500 per month (base rate) The RFP process allows the City to negotiate the price of the services and term of the contract upon selection of the successful firm. An evaluation committee consisting of Information Technology Department staff members reviewed the proposals. The committee carefully reviewed each firm's qualifications and submittal in response to the criteria identified in the RFP. ISC was selected because it best met the selection criteria identified in the proposal, including its experience, plans for transition of service to a new connection located at City Hall, service level commitment, and cost of service. On April 12, 2012, the City entered into a master service agreement with ISC (contract number S12142602) in the amount of approximately $20,000 per year. The agreement proposes a five- year contract term requiring Council approval (the Palo Alto Municipal Code only authorizes the City Manager to contract for terms up to three years). Staff requests that the City Council approve a five-year term agreement with the Internet Systems Consortium, Inc. (ISC) for Internet connectivity and transit services. Resource Impact Funds for the agreement are part of the Information Technology Department FY 2012-13 Operating Budget. Policy Implications This agreement does not represent any change to existing City policies. Environmental Review Approval of this agreement does not constitute a project under the California Environmental Quality Act (CEQA); therefore, not environmental assessment is required. Attachments:  Attachment A - ISC Agreement (PDF) Prepared By: Melissa Cavallo, Financial Analyst Department Head: Jonathan Reichental, Chief Information Officer July 23, 2012 Page 3 of 3 (ID # 2960) City Manager Approval: ____________________________________ James Keene, City Manager City of Palo Alto (ID # 2988) City Council Staff Report Report Type: Consent Calendar Meeting Date: 7/23/2012 July 23, 2012 Page 1 of 5 (ID # 2988) Summary Title: Massage Ordinance Title: Policy and Services Committee Recommendation Regarding Massage Ordinance From: City Manager Lead Department: Police Recommendation The Policy and Services Committee and staff recommends that the Council review and adopt the updated Palo Alto Massage Ordinance 4.45 PAMC, as unanimously recommended by the Policy and Services Committee on June 12, 2012. Background In 1974, the City of Palo Alto enacted massage ordinance 4.54 PAMC (Attachment B) to regulate the location of and ensure the lawful commerce of massage businesses in Palo Alto. The Police Department has been responsible for compliance with and enforcement of that ordinance, including permitting and compliance responsibilities. In 1996, in anticipation of pending State legislation and oversight, the City of Palo Alto suspended enforcement of licensing requirements for massage establishments. For a variety of reasons, the anticipated State legislation did not pass until 2009. This legislation created the California Massage Therapy Council (CAMTC), a public nonprofit benefit corporation, to regulate massage practice. Senate Bill 731, adopted in September 2009, enacted legislation impacting the ability of municipalities to regulate massage establishments and created the CAMTC to regulate and standardize the issuance of massage therapist and practitioner certificates throughout the state. Under State Law and SB 731, massage practitioners with a valid state certificate may practice massage in any July 23, 2012 Page 2 of 5 (ID # 2988) jurisdiction, without having to obtain additional permits from any local regulating body. In addition, the code prohibits local regulating bodies from adding massage specific regulations to massage businesses operated by CAMTC certificate holders. The intent of the bill is to provide uniform regulations statewide and to eliminate the disparate treatment of massage establishments. The code allows local jurisdictions to adopt reasonable health and safety requirements for massage establishments and provides the authority for local jurisdictions to establish an application process for massage practitioners and establishments that choose not to certify through CAMTC. CAMTC certification is strictly voluntary, and requires extensive hours of qualified education, background checks, and biennial fees. Approximately half of the therapists currently working in Palo Alto are CAMTC certified; the remaining have either an older-issued City permit or no massage permit. The City’s current massage ordinance does not recognize CAMTC certified therapists. After the new legislation went into effect, staff reviewed the City’s ordinance, State regulations and the massage ordinances of many surrounding cities. Other cities use a variety of approaches to regulate massage in their jurisdiction. Many use a hybrid approach of having a City permitting process as well as exempting CAMTC certified therapists (refer to attachment C for a summary). Staff learned that the City’s existing ordinance is significantly out of compliance with the new state law and it is necessary to redraft major portions of the City’s existing ordinance to become compliant. There are 191 massage therapists who hold permits issued under the existing ordinance to work within the City of Palo Alto. Research to gauge the current number of unpermitted massage therapists in Palo Alto revealed that the California Avenue business area had approximately twenty-four unregulated therapists. A number of these therapists are working without permits in solo establishments, in violation of the suspended ordinance. The Policy and Services Committee reviewed staff’s recommendations for revisions to the City’s Massage ordinance at its February, April and June meetings. Staff revised the ordinance each time as directed by the Committee (see July 23, 2012 Page 3 of 5 (ID # 2988) attachment D, E and F for City Manager Reports and minutes for each Committee meeting). At its June 12, meeting, the Policy and Services Committee unanimously recommended that the City Council adopt the Ordinance as provided in Attachment A. Discussion The City of Palo Alto’s proposed massage ordinance has been revised to comply with current state laws, including proposed revisions for municipal fees for permits. City of Palo Alto Massage Ordinance The City of Palo Alto Massage Ordinance provides for the regulation of massage establishments and massage technicians in the interests of the public health, safety, and welfare by providing certain minimum qualifications for the operators of massage establishments and for massage technicians and trainees. The proposed ordinance allows two methods for certification. Massage practitioners can obtain a CAMTC certificate which will permit them to operate without additional requirements or certification. The practitioners that do not obtain CAMTC certification can obtain a permit from the City. The proposed ordinance mandates non-CAMTC certified applicants to submit their fingerprints to the Department of Justice and FBI via Livescan for purposes of a criminal history check as well as to have minimum education hours from an accredited school. These requirements are consistent with what the CAMTC requires and are less stringent. The educational hours required to obtain a City permit are 200; CAMTC requires either 250 or 500 hours depending on certification level. The City will grant a grace period of 18 months to previously permitted Palo Alto therapists to meet the required additional education requirement. The proposed ordinance also creates a new category of therapist, a Non-Certified Therapist that is described further below. The proposed massage ordinance (Attachment A) encompasses the following changes to the City’s current ordinance: Adds language to exempt CAMTC certificate holders from obtaining an additional City massage permit. July 23, 2012 Page 4 of 5 (ID # 2988) Increases the education hours (from an accredited school) required for therapists from the current 100 hours to 200 hours. Creates two new categories of establishments: a Sole Proprietor, allowing a single person massage business to operate at a fixed location and reduces establishment fees; and, a Non-Certified establishment, allowing an establishment with employees that have not met the education requirement of a massage therapist. Creates a new category of therapist, a Non-Certified therapist, which is exempt from the City’s education requirement when performing clothed massage in an open setting. Adds the requirement of a minimum of $100,000 in liability malpractice insurance by all establishments, sole proprietors, and businesses supporting accessory massage technicians. Adds the requirement that massage technician permits be on display in a conspicuous location in all establishments. Exempts reflexologists from obtaining a City permit when performing reflexology only. Eliminates any special building requirements for massage establishments, as required by SB 731. Eliminates zoning requirements specifically targeting massage establishments. Adds the ability to deny massage technician permit issuance to any person the CAMTC has previously revoked, suspended, or denied. Community Outreach Staff made significant efforts to involve the members of the massage community in the re-drafting of this ordinance. The following meetings were held with both individuals and large groups: April 4, 2011- meeting with Watercourse Way representatives April 5, 2011- community meeting in council chambers May 5, 2011 - meeting with Happy Feet owner May 18, 2011- Multi-jurisdictional CAMTC Meeting May 19, 2011 and May 26, 2011- Small Group Massage Therapist meetings to review ordinance draft June 2, 2011- Second community meeting. July 23, 2012 Page 5 of 5 (ID # 2988) The meetings generated good discussion. Most of the concerns and issues brought forth by the therapist community are addressed in the revised ordinance. Resource Impact The passage of the proposed ordinance will require staff time to get all current therapists permitted and sole proprietorships and establishments permitted/inspected. The ordinance establishes a grace period of 18 months for educational requirements and 60 days for massage establishments to become compliant. The ordinance requires annual inspections by a Police Department staff member that can be completed within the existing job classification of Code Enforcement Officer and within the existing Police Department budget. Recommended permit fees to implement the ordinance is to be determined by estimating the costs of staff time and materials required for the permitting process. A survey of surrounding agencies’ fees will be conducted as well. Staff anticipates returning to the City Council in the first quarter of FY 2013 for formal adoption of the revised municipal fees concerning massage establishments and technicians. Attachments: Attachment A - Proposed Massage Ordinance 061212 (PDF) Attachment B - Current Massage Ordinance (PDF) Attachment C - Comparison to Local Jurisdictions (PDF) Attachment D - CMR & Minutes 02-14-12 (PDF) Attachment E - CMR & Minutes 04-10-12 (PDF) Attachment F - CMR & Minutes 06-12-12 (PDF) Prepared By: Ian Hagerman, Sr. Performance Auditor Department Head: Dennis Burns, Police Chief City Manager Approval: ____________________________________ James Keene, City Manager 1 ***Proposed Massage Municipal Code*** 4.54.010 Purpose and intent. It is the purpose and intent of this chapter to provide for the orderly regulation of massage establishments and massage technicians, as defined in this chapter, in the interests of the public health, safety, and welfare by providing certain minimum building, sanitation and health standards for massage establishments, and by providing certain minimum qualifications for the operators of massage establishments and for massage technicians and massage technician trainees. Unless otherwise indicated, the requirements of this Code shall not apply to massage practitioners and therapists certified by the California Massage Therapy Council (CAMTC) or establishments in which the owners and all practitioners are CAMTC certified. 4.54.020 Definitions. (a) For the purpose of this chapter, unless the context clearly requires a different meaning, the words, terms and phrases set forth in this section shall have the meanings given them in this section: (1) "Massage” means any method of pressure on, or friction against, or stroking, kneading, rubbing, tapping, pounding, vibrating or stimulating the external parts of the human body with the hands or with the aid of any mechanical or electrical apparatus, or other appliances or devices, with or without such supplementary aids as rubbing alcohol, liniment, antiseptic, oil, powder, cream, lotion, ointment or other similar preparations. (2) “Massage technician" means any person who administers massages, baths or health treatments involving massage or baths as the principal functions to another person for any consideration whatsoever. (3) “Massage technician trainee” means a student who works in a massage establishment under the supervision and direction of a massage technician who has received a permit issued under the provisions of this chapter. (4) "Massage establishment" means any establishment with more than one massage technician having a fixed place of business where any, firm, association, partnership, corporation, joint venture or combination of individuals engages in, conducts, carries on or permits to be engaged in, conducted or carried on massages, baths or health treatments involving massage or baths, where massage is part of primary function of the business. (5) "Sole Proprietor Massage establishment" means any owner-operated establishment having a fixed place of business where an individual, carries on or permits to be engaged in, conducted or carried on massages, baths or health treatments involving massage or baths as the principal functions. 2 (6) “Recognized school of massage” means any school or institution of learning which teaches the theory, ethics, practice, profession and work of massage. The student shall possess a diploma or certificate of graduation from such school or institution of learning following the successful completion of such course of study or learning, and which school has been approved pursuant to California Education Code Section 29025, or, if said school is not located in California, has complied with standards commensurate with those required in said Section 29025. Any school or institution of learning offering or allowing correspondence course credit not requiring actual attendance at class, or courses of a massage technician not approved by the California State Department of Education shall not be deemed a "recognized school of massage." (7) “Reflexology” Reflexology is the application of specific pressure by the use of the practitioner’s hands, thumb, and fingers to reflex points in the client’s hands, feet, or ears using alternating pressure, and such techniques as thumb walking, finger walking, hook and back up, and rotation on a reflex. (8) "Permit" means the permit to engage in the activities of a massage technician or a massage technician trainee as required by this chapter. (9) "Person" means any individual, firm, association, partnership, corporation, joint venture or combination of individuals. (10) “California Massage Therapy Council” (CAMTC) means the governing non- profit board that is authorized to evaluate qualifications of massage therapists and issue certification in the State of California. (11) “Accessory Technician Permit” A technician who is not a sole proprietorship may be eligible to receive an accessory technician permit. This permit will allow massage to be conducted within a business that is not a massage establishment, provided the following requirements are met: a. The technician must provide the police department with sufficient evidence to demonstrate that he or she is an independent contractor or an employee of the business. b. The business is not in the regular business of providing massage. c. The technician must obtain a massage technician permit as required by section 4.54.060 of this code. (12) "Noncertified massage practitioner" A massage practitioner who performs massage in an open and common room without partitions, and the individual in receipt of the massage remains fully clothed and does not disrobe except below the knee. A noncertified practitioner must: (1) apply for and obtain a noncertified practitioner 3 certificate; and (2) post the noncertified practitioner certificate in a conspicuous place in such a manner that it can be easily seen by persons entering the establishment. (13) "Noncertified massage establishment permit" A massage establishment permit issued to an establishment at which all the massage practitioners are noncertified practitioners. The same requirements applicable to massage establishment permits are applicable to noncertified massage establishment permits. 4.54.030 Massage establishment permit required. (a) Except as otherwise provided, it is unlawful for any person to engage in, conduct or carry on, in or upon any premises within the city the operation of massage establishment without a permit obtained from the chief of police, as required by this chapter. All requirements applicable to a massage establishment permit are applicable to a noncertified massage establishment permit. A massage establishment permit shall be issued to any person who has complied with the requirements of Sections 4.54.050 and 4.54.110 of this chapter, and all other applicable provisions of this code or state law, as applicable; unless grounds for denial of such permit are found to exist. In addition to those set forth in Section 4.04.140, grounds for denial include: (1) The applicant made a material misstatement in the application for a permit; (2) The applicant has, within five years immediately preceding the date of the filing of the application, been convicted in a court of competent jurisdiction of an offense involving conduct which requires registration under California Penal Code Section 290, or any violations of Sections 311 through 311.7, 313.1, 314, 315, 316, 318 or 647(a), 647(b), 647(d), or 647(h) of the California Penal Code, or of any offense involving theft of property or violence; (3) That the operation of a massage establishment, as proposed by the applicant if permitted, would not comply with all applicable laws including, but not limited to, all city ordinances and regulations; (4) That the operation of the proposed massage establishment is likely to be injurious to the health, safety, welfare, and interest of the people of the city; (5) That the applicant is lacking in the background and qualifications to conduct a bona fide massage establishment; or (6) That the applicant has violated any provision of this chapter, or of any similar ordinance, law, rule or regulation of another public agency which regulates the operation of massage establishments. (7) That the CAMTC has revoked, suspended, or denied the applicant a permit. 4 4.54.040 Massage establishment permit application fee; renewal (a) Any application for a permit to operate a massage establishment shall be accompanied by a nonrefundable fee as set forth in the municipal fee schedule. The application fee shall be used to defray, in part, the costs of investigation and report, and is not made in lieu of any other fees or taxes required under this code. (b) A permit to operate a massage establishment shall be renewed annually. The renewal fee shall be as set forth in the municipal fee schedule. In addition, the massage technician must also submit valid identification, massage certification and a completed new permit application. 4.54.050 Application for massage establishment permit. (a) Any application for a permit to operate a massage establishment shall be made with the chief of police. Within thirty working days following receipt of a completed application and LiveScan results, the chief of police shall either issue the permit or mail a written statement of his reasons for denial thereof. The application shall set forth the exact nature of the massage bath or health treatment to be administered, the proposed place of business and facilities therefore, and the name and address of each applicant. The chief of police may request the applicant to allow fingerprints to be taken when needed for the purpose of establishing identification. In addition to the requirements of Chapter 4.04 and this section, any applicant shall furnish the following items: 1. The address of the proposed location 2. The previous addresses of applicant, if any, for a period of three years immediately prior to the date of the application and the dates of residence at each; 3. Written proof that the applicant is at least eighteen years of age; 4. Applicant's height, weight, color of eyes and hair; 5. Two recent passport photos 6. Business, occupation or employment history of the applicant for the three years immediately preceding the date of the application; 7. If the applicant is a corporation, the name of the corporation shall be set forth exactly as shown in its articles of incorporation, together with the names and residence addresses of each of its officers, directors, and each stockholder holding more than five percent of the stock of the corporation. If the applicant is a partnership, the application shall set forth the name and residence address of each of the partners, including limited partners. If one or more of the partners is a corporation, the provisions of this section pertaining to a corporate applicant shall apply; 8. The names and residence addresses of all persons currently employed or intended to be employed in the massage establishment, regardless of the nature of the employment, other than any person permitted pursuant to Section 4.54.060, along with the proposed or actual nature of the work performed or to be performed, and recent passport-size photographs, suitable to the police officer or designee processing the application, of each such employee. The chief of police may 5 require such employee to allow fingerprints to be taken for the purpose of identification. Any applicant or permitee shall notify the city in writing of the names, addresses and nature of the work, of any new employees, within five days of such employment, and supply the photographs described in this subsection. Such new employees shall allow fingerprints to be taken for the purpose of identification upon request. "Employee" includes every owner, partner, manager, supervisor and worker, whether paid or not, who renders personal services of any nature in the operation of a massage establishment. 9. Such other information as may be deemed necessary by the chief of police. (b) Proof of malpractice insurance coverage or equivalent with a minimum of $100,000 coverage shall be required within 30 days of permit issuance. 4.54.060 Massage technician permit required. (a) It is unlawful for any person to act as a massage technician or a massage technician trainee unless such person holds a valid permit issued by the chief of police or a certification from the CAMTC. A massage technician permit shall be issued to any person who has fulfilled the requirements of Section 4.54.080, and all other provisions of this code or state law, as applicable; unless grounds for denial of such permit are found to exist. In addition to those set forth in Section 4.04.140, grounds for denial include: (1) The applicant made a material misstatement in the application for a permit; (2) The applicant has, within five years immediately preceding the date of the filing of the application, been convicted in a court of competent jurisdiction of an offense involving conduct which requires registration under California Penal Code Section 290, or any violations of Sections 311 through 311.7, 313.1, 314, 315, 316, 318 or 647(a), 647(b), 647(d), or 647(h) of the California Penal Code, or of any offense involving theft of property or violence; (3) That the issuance of the permit is likely to be injurious to the health, safety, welfare, and interest of the people of the city; (4) That the applicant is lacking in the background and qualifications to act as a massage technician; or (5) That the applicant has violated any provision of this chapter, or of any similar ordinance, law, rule or regulation of another public agency which regulates the operation of massage establishments or massage technicians. (6) That the CAMTC has revoked, suspended, or denied the applicant a permit. (b) A permit issued by the chief of police is not required for any massage technician and massage establishments if the owners and all technicians are massage practitioners or therapists, who are operating under a valid certificate issued by the Massage Therapist Organization (also known as the California Massage Therapy Council), per Chapter 10.5 6 (Commencing with Section 4600) of Division 2 of the California Business and Professions Code relating to massage therapy, provided however, that such person and business shall not be exempted from this Article if Chapter 10.5 is repealed. However notification of the CAMTC certification number must still be made to the police department where the CAMTC permit holder is working. 4.54.065 Education Requirements (a) General educational requirements. Except as indicated below, all applicants for a Massage Technician permit must meet the following educational standards to qualify for such permit, at the discretion of the Chief of Police: (1) Possession of a diploma or certificate of completion from a “recognized school of massage” which shows satisfactory completion of a resident course of study of a minimum of two hundred (200) verifiable hours on the theory, ethics, history, practice, and/or methods of massage therapy, including the study of anatomy, physiology and hygiene. (b) Exemptions from educational requirements. The following persons are exempt from the educational requirements set forth in subsection (a) above: (1) Holders of Massage Establishment business permits and Massage Technician business permits issued by the City before the effective date of this Chapter shall have a period of eighteen (18) months from the effective date of this Chapter to satisfy the educational requirements set forth in subsection (a) above. (2) Eighteen (18) months from the effective date of this ordinance, any therapist who does not have the required 200 hours of education will not be permitted to practice massage in Palo Alto. However, the chief of police may provide special consideration on a case-by-case basis to those massage technicians who can prove through documentation that they are currently enrolled in coursework associated with massage therapy and compliance of the 200 hour requirement is expected within a reasonable amount of time. (3) Applicants for noncertified massage practitioner permits or applicants for noncertified massage establishments permits. 4.54.070 Massage technician application fee. Any application for a permit to act as a massage technician shall be accompanied by a nonrefundable fee as set forth in the municipal fee schedule. A massage technician permit shall be renewed annually. The renewal fee shall be as set forth in the municipal fee schedule. Any person who applies for a permit to operate a massage establishment and who desires to act as a massage technician within said establishment shall not be required to furnish the information set forth in Section 4.54.080. 4.54.080 Application for massage technician permit. 7 (a) Any application for a permit to act as a massage technician shall be made with the chief of police. Within thirty working days following receipt of a completed application and LiveScan results, the chief of police shall either issue the permit, or mail a written statement of his reasons for denial thereof. If he takes neither action, the permit shall be deemed to be issued. The chief of police may request the applicant to furnish fingerprints when needed for the purpose of establishing identification. In addition to the requirements of Chapter 4.04, the applicant shall furnish the following items: (1) Name, residence address and telephone number; (2) Social security number and driver's license number, if any; (3) Applicant's weight, height, color of hair and eyes; (4) Two recent passport photos of applicant; (5) Written evidence that the applicant is at least eighteen years of age; (6) Business, occupation or employment of the applicant for the three years immediately preceding the date of application; (7) The name and address of the establishment where the applicant is to be employed, and the name of the owner or operator of the same. Any massage technician granted a permit pursuant to this section must report a change in massage establishment employment within five days of said change; (8) The name and address of the “recognized school of massage” attended, the date attended, and a copy of the diploma or certificate of graduation awarded to the applicant, or other documentation showing the applicant has completed 200 hours. 4.54.090 Massage technician trainee. (a) Any person desiring to obtain a permit to act as a massage technician trainee shall make an application to the chief of police. Within thirty working days following receipt of a completed application and having received LiveScan results, the chief of police shall either issue the permit, or mail a written statement of his reasons for denial thereof. If he takes neither action, the permit shall be deemed to be issued. A massage technician trainee permit shall be issued to any person who has fulfilled all the requirements of Section 4.54.080, except item (8), and who produces written proof that the applicant is currently enrolled in a “recognized school of massage”, as defined in this chapter; of the date the applicant enrolled in the recognized school of massage; and the scheduled date of graduation; and that the applicant has completed at least fifty hours of instruction and the date this instruction was completed; provided the applicant submits a letter signed by the owner or manager of a permitted massage establishment stating his immediate intent to employ the applicant to do massage as a trainee working under the 8 direct supervision and control of a massage technician who has received a permit under the provisions of this chapter unless: (1) The applicant knowingly made a material misstatement in the application for the trainee permit; or (2) The applicant has, within five years immediately preceding the date of the filing of the application, been convicted in a court of competent jurisdiction of an offense involving conduct which requires registration under California Penal Code Section 290, or any violation of Sections 311 through 311.7, 313.1, 314, 315, 316, 318 or 647(a), 647(b), 647(d) or 647(h) of the California Penal Code or of any offense involving theft of property. No fee shall be required of a massage technician trainee applicant. The trainee must at all times comply with the laws relating to massage establishments, and the failure to comply may render the trainee ineligible to obtain a massage technician permit. Any massage technician trainee who, during the life of the trainee permit, completes the instruction required of a massage technician, shall be issued a massage technician permit upon payment of a massage technician application fee as set forth in the municipal fee schedule. 4.54.100 Appeal. In the event a permit or permit application has been denied, the applicant shall proceed pursuant to the appeal and hearing provision in Chapter 4.04. 4.54.110 Massage establishment facilities and operations requirements. (a) Except as otherwise indicated, all massage establishments, including those certified by CAMTC, shall comply with the following facilities and operations requirements: (1) Massage establishments shall comply with all code requirements. (2) A minimum of one toilet and wash basin shall be provided in every massage establishment. (3) Cabinets or other covered space shall be provided for the storage of clean linen. Approved receptacles shall be provided for the storage of all soiled linen and paper towels. (4) Minimum ventilation shall be provided in accordance with the building code of the city. To allow for adequate ventilation in cubicles, rooms and areas provided for patrons' use, which are not serviced directly by required window or mechanical systems 9 of ventilation, partitions shall be constructed so that the height of partition does not exceed seventy-five percent of the floor-to-ceiling height of the area in which they are located. (5) All plumbing and electrical installations shall be installed under permit and inspection of the building inspection department, and such installations shall be installed in accordance with the Uniform Building Code and the Uniform Plumbing Code. (6) The walls in all rooms where water or steam baths are given shall have a washable, mold-resistant surface. (7) All lavatories or wash basins shall be provided with hot and cold running water, soap and single-service towels and/or hot-air hand dryers. (8) Every portion of a massage establishment, including appliances, apparatus and personnel, shall be kept clean and operated in a sanitary condition. (9) All massage establishments shall provide clean and sanitary towels, sheets and linens in sufficient quantity. Towels, sheets and linens shall not be used by more than one person. Reuse of such linen is prohibited unless the same has first been laundered. Heavy white paper may be substituted for sheets; provided, that such paper is used once for each person and then discarded into a sanitary receptacle. (10) All walls, ceilings, floors, pools, showers, bathtubs, steam rooms and all other physical facilities for the establishment must be in good repair and maintained in a clean and sanitary condition. Wet and dry heat rooms, steam or vapor rooms, or steam or vapor cabinets, shower compartments and toilet rooms shall be thoroughly cleaned and disinfected each day the business is in operation. Bathtubs shall be thoroughly cleaned and disinfected after each use. (11) Disinfecting agents and sterilizing equipment shall be provided for any instruments used in performing acts of massage and said instruments shall be disinfected and sterilized after each use. (12) Pads used on massage tables shall be covered with durable, washable plastic or other acceptable waterproof material. (13) (A) To protect patrons from potential health and sanitary hazards, all employees, massage technicians and massage technician trainees shall be clean and shall perform all services on the premises in full, clean outer garments. (B) Exception. A massage technician may perform services wearing no clothing or wearing less than full outer garments when teaching a class gathered to learn the theory, practice, or work of massage, and when said class consists in part of massage by the technician or members of the gathered class. 10 The following items, (14) through (17), shall not apply to CAMTC certified establishments: (14) Each service offered, the price thereof, and the minimum length of time such service shall be performed shall be posted or shall be available in a conspicuous public location in each massage establishment. All letters and numbers shall be capitals, and not smaller than 14 point font. (15) (A) Massage establishments shall close and remain closed from eleven p.m. (11 p.m.) to nine a.m. (9:00 a.m.) (B) After one year of operation a massage establishment may be exempted from the hours restrictions of this section by the chief of police upon a written request which details the factual reasons supporting good cause for the exemption. The chief of police, in determining what constitutes good cause for this exemption from the hours restrictions, shall consider and weight the following factors: (i) The criteria outlined in Section 4.04.140 of Chapter 4.04; (ii) The criteria outlined in Section 4.54.030 of this chapter; (iii) The impact which the massage establishment has had on the health, safety, and welfare of the local community, including, but not limited to, parking and traffic congestion; (iv) The massage establishment's compliance or noncompliance with all federal, state, and local laws, including, but not limited to, this municipal code. If, upon review of those factors, the chief of police determines that good cause does exist for the requested exemption, the chief may then exempt the particular massage establishment from the hours restrictions of this section. However, in no event shall any massage establishment close later than two a.m. nor open earlier than six a.m. (C) The exemption from the hours restrictions of this section shall be subject to review and renewal annually at the same time as the renewal of the underlying permit and the same factual showing shall be made as that required for the initial exemption. The chief shall not grant an hours exemption unless said establishment has maintained the criteria specified in Section 4.54.110(a)(16)(B). (16) (Client record keeping by establishments deleted) (17) Off-premises Massage Prohibited. Except as otherwise provided, no person, , shall engage in any of the services permitted under this chapter at any place other than an establishment permitted pursuant to Chapter 4.54. 11 4.54.120 Inspection by officials. Any and all investigating officials of the city shall have the right to enter massage establishments from time to time during regular business hours to make reasonable inspections to observe and enforce compliance with building, fire, electrical, plumbing or health regulations. A warrant shall be obtained whenever required by law. 4.54.130 Business name. No person permitted to operate a massage establishment shall operate under any name or conduct business under any designation not specified in the permit. 4.54.140 Business location change. Upon a change of location of a massage establishment, an application to the chief of police shall be made, and such application shall be granted, provided all applicable provisions of this code are complied with and a change of location fee as set forth in the municipal fee schedule to defray, in part, the costs of investigation and report, has been paid to the city. 4.54.150 Sale or transfer of massage establishment interest. A sale or transfer of any interest in a massage establishment, which interest would be reported as required in this chapter upon application for a massage establishment permit, shall be reported to the chief of police within ten days of such sale or transfer. The chief of police shall investigate any person receiving any interest in a massage establishment as a result of such sale or transfer, and if such person satisfies the requirements relating to massage establishment permit applicants, the existing permit shall be endorsed to include such person. A fee as set forth in the municipal fee schedule shall be paid to the city for the investigation by the chief of police necessitated by each such sale or transfer. 4.54.160 Display of permits, permits. The owner or operator of a massage establishment shall display the massage establishment permit and the permit of each and every massage technician or massage technician trainee employed in the establishment in an open and conspicuous place on the premises or keep the permits together in a designated area, such that the permits are easily accessible for inspection. Passport-size photographs of permittees shall be affixed to the respective permits on display pursuant to this section. Home addresses of massage technicians and massage technician trainees need not be displayed. A fine for continued violation will be collected in an amount to be determined by resolution of the City Council. 4.54.170 Exemptions. 12 The provisions of this Chapter shall not apply to the following classes of individuals while engaged in the performance of the duties of their respective professions: (1) Physicians, surgeons, chiropractors, osteopaths or physical therapists who are duly permitted to practice their respective professions in the state of California; (2) Nurses registered under the laws of the state of California; (3) Barbers and beauticians who are duly permitted under the laws of the state of California. (4) Reflexologists performing reflexology; however any reflexologist engaged in massage shall be required to comply with the provisions of this Chapter. 4.54.180 Grounds for denial, probation, and disciplinary action. In addition to any provisions of this chapter, the grounds set forth in Section 4.04.140 shall apply to permits and permits required under this chapter. Any circumstances constituting grounds for denial shall also constitute grounds for revocation, suspension or disciplinary action. 4.54.190 Hearing. Any permittee whose permit has been suspended or revoked shall proceed pursuant to the appeal and hearing provisions of Chapter 4.04. 4.54.200 Application to existing establishments and technicians. All operators of existing massage bath or health treatment establishments, and all persons engaged in giving massage, bathing and health treatments in the city upon the effective date of this chapter shall begin the application process and comply with all application and other requirements within sixty (60) days following the effective date of this chapter. 4.54.210 Application of other code provisions. Chapters 1.08 and 4.04 shall apply to the subject matter of this chapter in all respects, including those not specifically mentioned in this chapter. Chapter 4.54 MASSAGE ESTABLISHMENTS Sections: 4.54.010 Purpose and intent. 4.54.020 Definitions. 4.54.030 Massage establishment license required. 4.54.040 Massage establishment license application fee. 4.54.050 Application for massage establishment license. 4.54.060 Massage technician permit required. 4.54.070 Massage technician application fee. 4.54.080 Application for massage technician permit. 4.54.090 Massage technician trainee. 4.54.100 Appeal. 4.54.110 Massage establishment facilities and operations requirements. 4.54.120 Inspection by officials. 4.54.130 Business name. 4.54.140 Business location change. 4.54.150 Sale or transfer of massage establishment interest. 4.54.160 Display of permits, licenses. 4.54.170 Exemptions. 4.54.180 Grounds for denial, probation, and disciplinary action. 4.54.190 Hearing. 4.54.200 Application to existing establishments and technicians. 4.54.210 Application of other code provisions. 4.54.010 Purpose and intent. It is the purpose and intent of this chapter to provide for the orderly regulation of massage establishments and massage technicians, as defined in this chapter, in the interests of the public health, safety and welfare by providing certain minimum building, sanitation and health standards for massage establishments, and by providing certain minimum qualifications for the operators of massage establishments and for massage technicians and massage technician trainees. (Ord. 2833 § 1 (part), 1974) 4.54.020 Definitions. (a) For the purpose of this chapter, unless the context clearly requires a different meaning, the words, terms and phrases set forth in this section shall have the meanings given them in this section: (1) "Massage" means any method of pressure on, or friction against, or stroking, kneading, rubbing, tapping, pounding, vibrating or stimulating the external parts of the human body with the hands or with the aid of any mechanical or electrical apparatus, or other appliances or devices, with or without such supplementary aids as rubbing alcohol, liniment, antiseptic, oil, powder, cream, lotion, ointment or other similar preparations. (2) "Massage establishment" means any establishment having a fixed place of business where any individual, firm, association, partnership, corporation, joint venture or combination of individuals engages in, conducts, carries on or permits to be engaged in, conducted or carried on massages, baths or health treatments involving massage or baths as the principal functions. (3) "Massage technician" means any person who administers massages, baths or health treatments involving massages or baths as the principal functions to another person for any consideration whatsoever. (4) "Recognized school of massage" means any school or institution of learning which teaches the theory, ethics, practice, profession and work of massage, which school or institution of learning requires a residence course of study of not fewer than seventy hours to be given in not more than three calendar months before the student shall be furnished with a diploma or certificate of graduation from such school or institution of learning following the successful completion of such course of study or learning, and which school has been approved pursuant to California Education Code Section 29025, or, if said school is not located in California, has complied with standards commensurate with those required in said Section 29025. Any school or institution of learning offering or allowing correspondence course credit not requiring actual attendance at class, or courses of a massage technician not approved by the California State Department of Education shall not be deemed a "recognized school of massage." (5) "License" means the business license to operate a massage establishment as required by this chapter. (6) "Permit" means the permit to engage in the activities of a massage technician or a massage technician trainee as required by this chapter. (7) "Person" means any individual, firm, association, partnership, corporation, joint venture or combination of individuals. (Ord. 2833 § 1 (part), 1974) 4.54.030 Massage establishment license required. (a) It is unlawful for any person to engage in, conduct or carry on, in or upon any premises within the city the operation of massage establishment without the license obtained from the chief of police as required by this chapter. A massage establishment license shall be issued to any person who has complied with the requirements of Sections 4.54.050 and 4.54.110 of this chapter, and all other applicable provisions of this code; unless grounds for denial of such license are found to exist. In addition to those set forth in Section4.04.140, grounds for denial include: (1) The applicant made a material misstatement in the application for a license; (2) The applicant has, within five years immediately preceding the date of the filing of the application, been convicted in a court of competent jurisdiction of an offense involving conduct which requires registration under California Penal Code Section 290, or any violations of Sections 311 through 311.7, 313.1, 314, 315, 316, 318 or 647(a), 647(b), 647(d), or 647(h) of the California Penal Code, or of any offense involving theft of property or violence; (3) That the operation of a massage establishment, as proposed by the applicant if permitted, would not comply with all applicable laws including, but not limited to, all city ordinances and regulations; (4) That the operation of the proposed massage establishment is likely to be injurious to the health, safety, welfare, and interest of the people of the city; (5) That the applicant is lacking in the background and qualifications to conduct a bona fide massage establishment; or (6) That the applicant has violated any provision of this chapter, or of any similar ordinance, law, rule or regulation of another public agency which regulates the operation of massage establishments. (Ord. 3113 § 4, 1979: Ord. 2946 § 1, 1976: Ord. 2921 § 9, 1976: Ord. 2833 § 1 (part), 1974) 4.54.040 Massage establishment license application fee. Any application for a license to operate a massage establishment shall be accompanied by a nonrefundable fee as set forth in the municipal fee schedule. The application fee shall be used to defray, in part, the costs of investigation and report, and is not made in lieu of any other fees or taxes required under this code. A license to operate a massage establishment shall be renewed annually. The renewal fee shall be as set forth in the municipal fee schedule. (Ord. 2960 § 27, 1976: Ord. 2921 § 1, 1976: Ord. 2833 § 1 (part), 1974) 4.54.050 Application for massage establishment license. (a) Any application for a license to operate a massage establishment shall be made with the chief of police. Within thirty working days following receipt of a completed application, the chief of police shall either issue the permit or mail a written statement of his reasons for denial thereof. The application shall set forth the exact nature of the massage, bath or health treatment to be administered, the proposed place of business and facilities therefor, and the name and address of each applicant. The chief of police may request the applicant to allow fingerprints to be taken when needed for the purpose of establishing identification. In addition to the requirements of Chapter 4.04 and this section, any applicant shall furnish the following information: (1) The previous addresses of applicant, if any, for a period of three years immediately prior to the date of the application and the dates of residence at each; (2) Written proof that the applicant is at least eighteen years of age; (3) Applicant's height, weight, color of eyes and hair; (4) The applicant shall allow the police officer processing the application to take photographs of the applicant; (5) Business, occupation or employment history of the applicant for the three years immediately preceding the date of the application; (6) If the applicant is a corporation, the name of the corporation shall be set forth exactly as shown in its articles of incorporation, together with the names and residence addresses of each of its officers, directors, and each stockholder holding more than five percent of the stock of the corporation. If the applicant is a partnership, the application shall set forth the name and residence address of each of the partners, including limited partners. If one or more of the partners is a corporation, the provisions of this section pertaining to a corporate applicant shall apply; (7) The names and residence addresses of all persons currently employed or intended to be employed in the massage establishment, regardless of the nature of the employment, other than any person licensed pursuant to Section 4.54.060, along with the proposed or actual nature of the work performed or to be performed, and recent passport- size photographs, suitable to the police officer processing the application, of each such employee. The chief of police may require such employee to allow fingerprints to be taken for the purpose of identification. Any applicant or licensee shall notify the city in writing of the names, addresses and nature of the work, of any new employees, within five days of such employment, and supply the photographs described in this subsection. Such new employees shall allow fingerprints to be taken for the purpose of identification upon request. "Employee" includes every owner, partner, manager, supervisor and worker, whether paid or not, who renders personal services of any nature in the operation of a massage establishment; (8) Such other information as may be deemed necessary by the chief of police. (Ord. 2946 § 2, 1976: Ord. 2921 § 9, 1976: Ord. 2833 § 1 (part), 1974) 4.54.060 Massage technician permit required. (a) It is unlawful for any person to act as a massage technician or a massage technician trainee unless such person holds a valid permit issued by the chief of police. A massage technician permit shall be issued to any person who has fulfilled the requirements of Section 4.54.080, and all other applicable provisions of this code; unless grounds for denial of such permit are found to exist. In addition to those set forth in Section4.04.140, grounds for denial include: (1) The applicant made a material misstatement in the application for a license; (2) The applicant has, within five years immediately preceding the date of the filing of the application, been convicted in a court of competent jurisdiction of an offense involving conduct which requires registration under California Penal Code Section 290, or any violations of Sections 311 through 311.7, 313.1, 314, 315, 316, 318 or 647(a), 647(b), 647(d), or 647(h) of the California Penal Code, or of any offense involving theft of property or violence; (3) That the issuance of the permit is likely to be injurious to the health, safety, welfare, and interest of the people of the city; (4) That the applicant is lacking in the background and qualifications to act as a massage technician; or (5) That the applicant has violated any provision of this chapter, or of any similar ordinance, law, rule or regulation of another public agency which regulates the operation of massage establishments or massage technicians. (Ord. 3113 § 5, 1979: Ord. 2921 §§ 2, 9, 1976: Ord. 2833 § 1 (part), 1974) 4.54.070 Massage technician application fee. Any application for a permit to act as a massage technician shall be accompanied by a nonrefundable fee as set forth in the municipal fee schedule. A massage technician permit shall be renewed annually. The renewal fee shall be as set forth in the municipal fee schedule. Any person who applies for a license to operate a massage establishment and who desires to act as a massage technician within said establishment shall not be required to furnish the information set forth in Section 4.54.080. (Ord. 2960 § 28, 1976: Ord. 2921 § 3, 1976: Ord. 2833 § 1 (part), 1974) 4.54.080 Application for massage technician permit. (a) Any application for a permit to act as a massage technician shall be made with the chief of police. Within thirty working days following receipt of a completed application, the chief of police shall either issue the permit, or mail a written statement of his reasons for denial thereof. If he takes neither action, the permit shall be deemed to be issued. The chief of police may request the applicant to furnish fingerprints when needed for the purpose of establishing identification. In addition to the requirements of Chapter 4.04, the applicant shall furnish the following information: (1) Name, residence address and telephone number; (2) Social security number and driver's license number, if any; (3) Applicant's weight, height, color of hair and eyes; (4) The applicant shall furnish a recent photograph of applicant to the police department official who processes the application; (5) Written evidence that the applicant is at least eighteen years of age; (6) Business, occupation or employment of the applicant for the three years immediately preceding the date of application; (7) The name and address of the establishment where the applicant is to be employed, and the name of the owner or operator of the same. Any massage technician granted a permit pursuant to this section must report a change in massage establishment employment within five days of said change; (8) The name and address of the recognized school of massage attended, the date attended, and a copy of the diploma or certificate of graduation awarded the applicant showing the applicant has completed not fewer than seventy hours of instruction, or written and verified proof that applicant has had at least five hundred hours' experience in the profession, work and method of massage as of the effective date of the ordinance codified in this chapter. (Ord. 2921 §§ 4, 9, 1976: Ord. 2833 § 1 (part) 1974) 4.54.090 Massage technician trainee. (a) Any person desiring to obtain a permit to act as a massage technician trainee shall make an application to the chief of police. Within thirty working days following receipt of a completed application, the chief of police shall either issue the permit, or mail a written statement of his reasons for denial thereof. If he takes neither action, the permit shall be deemed to be issued. A massage technician trainee permit shall be issued to any person who has fulfilled the requirements of Section 4.54.080 and who produces written proof that the applicant is currently enrolled in a recognized school of massage, as defined in this chapter; of the date the applicant enrolled in the recognized school of massage; and the scheduled date of graduation; and that the applicant has completed at least fifty hours of instruction and the date this instruction was completed; provided the applicant submits a letter signed by the owner or manager of a licensed massage establishment stating his immediate intent to employ the applicant to do massage as a trainee working under the direct supervision and control of a massage technician who has received a permit under the provisions of this chapter unless: (1) The applicant knowingly made a material misstatement in the application for the trainee permit; or (2) The applicant has, within five years immediately preceding the date of the filing of the application, been convicted in a court of competent jurisdiction of an offense involving conduct which requires registration under California Penal Code Section 290, or any violation of Sections 311 through 311.7, 313.1, 314, 315, 316, 318 or 647(a), 647(b), 647(d) or 647(h) of the California Penal Code or of any offense involving theft of property. The trainee permit shall allow the student to work in a massage establishment under the supervision and direction of a massage technician who has received a permit issued under the provisions of this chapter; provided, however, no licensed massage technician shall be permitted to supervise more than two persons issued a trainee permit. The trainee permit shall expire three months from the date of issuance and shall not be renewed unless good cause is shown by the applicant for such renewal. No fee shall be required of a massage technician trainee applicant. The trainee must at all times comply with the laws relating to massage establishments, and the failure to comply may render the trainee ineligible to obtain a massage technician permit. Any massage technician trainee who, during the life of the trainee permit, completes the instruction required of a massage technician, shall be issued a massage technician permit upon payment of a massage technician application fee as set forth in the municipal fee schedule. (Ord. 2960 § 29, 1976: Ord. 2921 §§ 5, 9, 1976: Ord. 2833 § 1 (part), 1974) 4.54.100 Appeal. In the event a permit or license application has been denied, the applicant shall proceed pursuant to the appeal and hearing provision in Chapter 4.04. (Ord. 2833 § 1 (part), 1974) 4.54.110 Massage establishment facilities and operations requirements. (a) All massage establishments shall comply with the following facilities and operations requirements: (1) Massage establishments shall comply with all code requirements. (2) A minimum of one tub or shower, and one toilet and wash basin shall be provided in every massage establishment. (3) Cabinets or other covered space shall be provided for the storage of clean linen. Approved receptacles shall be provided for the storage of all soiled linen and paper towels. (4) Minimum ventilation shall be provided in accordance with the building code of the city. To allow for adequate ventilation in cubicles, rooms and areas provided for patrons' use, which are not serviced directly by required window or mechanical systems of ventilation, partitions shall be constructed so that the height of partition does not exceed seventy-five percent of the floor-to-ceiling height of the area in which they are located. (5) All plumbing and electrical installations shall be installed under permit and inspection of the building inspection department, and such installations shall be installed in accordance with the Uniform Building Code and the Uniform Plumbing Code. (6) The walls in all rooms where water or steam baths are given shall have a washable, mold-resistant surface. (7) All lavatories or wash basins shall be provided with hot and cold running water, soap and single-service towels in wall-mounted dispensers. (8) Security deposit facilities capable of being locked by the patron or a security bag that may be carried by the patron shall be available for the protection of the valuables of the patrons. (9) Every portion of a massage establishment, including appliances, apparatus and personnel, shall be kept clean and operated in a sanitary condition. (10) All massage establishments shall be provided with clean and sanitary towels, sheets and linens in sufficient quantity. Towels, sheets and linens shall not be used by more than one person. Reuse of such linen is prohibited unless the same has first been laundered. Heavy white paper may be substituted for sheets; provided, that such paper is used once for each person and then discarded into a sanitary receptacle. (11) All walls, ceilings, floors, pools, showers, bathtubs, steam rooms and all other physical facilities for the establishment must be in good repair and maintained in a clean and sanitary condition. Wet and dry heat rooms, steam or vapor rooms, or steam or vapor cabinets, shower compartments and toilet rooms shall be thoroughly cleaned and disinfected each day the business is in operation. Bathtubs shall be thoroughly cleaned and disinfected after each use. (12) Disinfecting agents and sterilizing equipment shall be provided for any instruments used in performing acts of massage and said instruments shall be disinfected and sterilized after each use. (13) Pads used on massage tables shall be covered with durable, washable plastic or other acceptable waterproof material. (14) (A) To protect patrons from potential health and sanitary hazards, all employees, massage technicians and massage technician trainees shall be clean and shall perform all services on the premises in full, clean outer garments. (B) Exception. A massage technician may perform services wearing no clothing or wearing less than full outer garments when teaching a class gathered to learn the theory, practice, or work of massage, and when said class consists in part of massage by the technician or members of the gathered class. (15) Each service offered, the price thereof, and the minimum length of time such service shall be performed shall be posted in a conspicuous public location in each massage establishment. All letters and numbers shall be capitals, and not less than one- half inch in height. (16) (A) Massage establishments shall close and remain closed from eleven p.m. to nine a.m. (B) After one year of operation a massage establishment may be exempted from the hours restrictions of this section by the chief of police upon a written request which details the factual reasons supporting good cause for the exemption. The chief of police, in determining what constitutes good cause for this exemption from the hours restrictions, shall consider and weight the following factors: (i) The criteria outlined in Section 4.04.140 of Chapter 4.04; (ii) The criteria outlined in Section 4.54.030 of this chapter; (iii) The impact which the massage establishment has had on the health, safety, and welfare of the local community, including, but not limited to, parking and traffic congestion; (iv) The massage establishment's compliance or noncompliance with all federal, state, and local laws, including, but not limited to, this municipal code. If, upon review of those factors, the chief of police determines that good cause does exist for the requested exemption, the chief may then exempt the particular massage establishment from the hours restrictions of this section. However, in no event shall any massage establishment close later than two a.m. nor open earlier than six a.m. (C) The exemption from the hours restrictions of this section shall be subject to review and renewal annually at the same time as the renewal of the underlying license and the same factual showing shall be made as that required for the initial exemption. The chief shall not grant an hours exemption unless said establishment has maintained the criteria specified in Section 4.54.110(a)(16)(B). (17) No massage establishment shall be allowed in the following locations: (A) Within two hundred fifty feet of the exterior property limits of any public or private elementary school, junior high school or high school; (B) Within two hundred fifty feet of the exterior limits of any district where residential use is the principal permitted use, including all R and RM districts, O-S districts, and any P-C or P-F districts where the principal use permitted or maintained is residential; or (C) Within twelve hundred feet of the ex-terior property limits of any other premises lawfully occupied by a massage establish-ment, by any establishment subject to the provisions of Chapter 4.55, any cardroom or hot tub/sauna establishment. For the purpose of determining compliance with this standard, as to, between and with respect to establishments lawfully in operation on the effective date of this section, priority between such existing establishments shall be assigned in accordance with the dates upon which said establishments commenced such lawful operations. All massage establishments lawfully in operation on the effective date of this section shall within sixty days of said date apply to the chief of police for a determination as to compliance with the provisions of this section. Said application shall be in such form as prescribed by the chief of police. Any massage establishment legally existing on the effective date of this subsection and which is not in compliance with the provisions of this subsection shall comply with said provisions on or before May 24, 1987; provided, however, that any such establishment which intends to in any way transfer ownership or alter or change the nature of any such massage establishment on or after the effective date of this subsection shall comply with the provisions of this subsection prior to such transfer, alteration or change. Any such use which at the expiration of said period is not in compliance with the provisions of this subsection shall at that time discontinue and abate its operation. Any massage establishment lawfully in operation upon the effective date of this subsection failing to comply with the provisions of this subsection shall be issued a limited-term license in lieu of its current license, containing a statement on its face reciting such noncompliance and the date by which compliance must be accomplished, and that said license shall not be renewed beyond said date. All distances referred to in this subsection shall be measured between the closest points on the exterior property lines or area boundaries of the parcels or areas involved, except that when a massage establishment subject to the provisions of this section occupies one unit of a multi-unit structure located on a single parcel, distances shall be measured from the exterior boundaries of the unit so occupied. (18) Outcall Prohibited. No person shall engage in any of the services permitted under this chapter at any place other than an establishment licensed pursuant to Chapter 4.54, unless the patron possesses and presents a valid prescription or other writing from a licensed physician to the effect that the patron of such services cannot be treated at a licensed massage establishment. A record of every such prescription or other writing shall be obtained and kept by the person rendering the services for a period of one year. Such record shall show the name and address of the doctor, the date, and any prescription number. (Ord. 4642 § 3, 2000: Ord. 3592 § 1, 1985: Ord. 3113 § 6, 1979: Ord. 3095 § 1, 1978: Ord. 2946 § 3, 1976: Ord. 2921 § 6, 1976: Ord. 2833 § 1 (part), 1974) 4.54.120 Inspection by officials. Any and all investigating officials of the city shall have the right to enter massage establishments from time to time during regular business hours to make reasonable inspections to observe and enforce compliance with building, fire, electrical, plumbing or health regulations. A warrant shall be obtained whenever required by law. (Ord. 2833 § 1 (part), 1974) 4.54.130 Business name. No person licensed to operate a massage establishment shall operate under any name or conduct business under any designation not specified in the license. (Ord. 2833 § 1 (part), 1974) 4.54.140 Business location change. Upon a change of location of a massage establishment, an application to the chief of police shall be made, and such application shall be granted, provided all applicable provisions of this code are complied with and a change of location fee as set forth in the municipal fee schedule to defray, in part, the costs of investigation and report, has been paid to the city. (Ord. 2960 § 30, 1976: Ord. 2921 §§ 7, 9, 1976: Ord. 2833 § 1 (part), 1974) 4.54.150 Sale or transfer of massage establishment interest. A sale or transfer of any interest in a massage establishment, which interest would be reported as required in this chapter upon application for a massage establishment license, shall be reported to the chief of police within ten days of such sale or transfer. The chief of police shall investigate any person receiving any interest in a massage establishment as a result of such sale or transfer, and if such person satisfies the requirements relating to massage establishment license applicants, the existing license shall be endorsed to include such person. A fee as set forth in the municipal fee schedule shall be paid to the city for the investigation by the chief of police necessitated by each such sale or transfer. (Ord. 2960 § 31, 1976: Ord. 2921 §§ 8, 9, 1976: Ord. 2833 § 1 (part), 1974) 4.54.160 Display of permits, licenses. The owner or operator of a massage establishment shall display the massage establishment license and the permit of each and every massage technician or massage technician trainee employed in the establishment in an open and conspicuous place on the premises. Passport-size photographs of the licensee and permittees shall be affixed to the respective license and permits on display pursuant to this section. Home addresses of massage technicians and massage technician trainees need not be displayed. (Ord. 2833 § 1 (part), 1974) 4.54.170 Exemptions. (a) This chapter shall not apply to the following classes of individuals while engaged in the performance of the duties of their respective professions: (1) Physicians, surgeons, chiropractors, osteopaths or physical therapists who are duly licensed to practice their respective professions in the state of California; (2) Nurses registered under the laws of the state of California; (3) Trainers of any amateur, semiprofessional or professional athlete or athletic team; (4) Barbers and beauticians who are duly licensed under the laws of the state of California. (Ord. 2833 § 1 (part), 1974) 4.54.180 Grounds for denial, probation, and disciplinary action. In addition to any provisions of this chapter, the grounds set forth in Section 4.04.140 shall apply to licenses and permits required under this chapter. Any circumstances constituting grounds for denial shall also constitute grounds for revocation, suspension or disciplinary action. (Ord. 3113 § 7, 1979: Ord. 2833 § 1 (part), 1974) 4.54.190 Hearing. Any licensee or permittee whose license or permit has been suspended or revoked shall proceed pursuant to the appeal and hearing provisions of Chapter 4.04. (Ord. 2833 § 1 (part), 1974) 4.54.200 Application to existing establishments and technicians. All operators of existing massage, bath or health treatment establishments, and all persons engaged in giving massage, bathing and health treatments in the city upon the effective date of this chapter shall comply with all application and other requirements within thirty days following the effective date of this chapter. (Ord. 2833 § 1 (part), 1974) 4.54.210 Application of other code provisions. Chapter 4.04 shall apply to the subject matter of this chapter in all respects, including those not specifically mentioned in this chapter. (Ord. 2833 § 1 (part), 1974) Disclaimer: This Code of Ordinances and/or any other documents that appear on this site may not reflect the most current legislation adopted by the Municipality. American Legal Publishing Corporation provides these documents for informational purposes only. These documents should not be relied upon as the definitive authority for local legislation. Additionally, the formatting and pagination of the posted documents varies from the formatting and pagination of the official copy. The official printed copy of a Code of Ordinances should be consulted prior to any action being taken. For further information regarding the official version of any of this Code of Ordinances or other documents posted on this site, please contact the Municipality directly or contact American Legal Publishing toll-free at 800-445-5588. © 2011 American Legal Publishing Corporation techsupport@amlegal.com 1.800.445.5588. City of Palo Alto (ID # 2287) Policy and Services Committee Staff Report Report Type:Meeting Date: 2/14/2012 February 14, 2012 Page 1 of 12 (ID # 2287) Summary Title: Massage Ordinance Revision Title: Request Policy and Services Committee Review of the Proposed Ordinance Changes to Section 4.54, Massage Establishments From:City Manager Lead Department: Police Recommendation Staff requests that the Policy and Services Committee review the proposed updated Massage Ordinance and recommend passage of the ordinance to City Council. Background The City of Palo Alto enacted the current massage ordinance, Palo Alto Municipal Code (PAMC) Section 4.54, to regulate the location of and ensure the lawful commerce of massage businesses in Palo Alto. The ordinance was enacted in 1974 (Attachment A). The Police Department has been responsible for compliance with and enforcement of that ordinance. In 1996, in anticipation of pending State legislation and oversight, the City of Palo Alto suspended enforcement of the massage ordinance. For a variety of reasons, the anticipated State legislation was not passed until 2009. During the interim period, the City of Palo Alto informed massage applicants and previously permitted therapists of the ordinance suspension (Attachment B). The Police Department’s Code Enforcement Officer is responsible for massage permitting and compliance with the ordinance. The Police Department recently revisited the ordinance and State regulations. The review included research into the number of massage practitioners in Palo Alto and a comparison of Palo Alto’s ordinance with other municipalities’ ordinances and with the State regulations and requirements. The Police Department reviewed the massage municipal ordinances of Belmont, San Mateo, Los Gatos, Redwood City, Burlingame, Foster City, Mountain View, and Millbrae. There are 195 massage therapists currently working in the City, 111 of whom are CAMTC certified. Sample research to gauge the current number of unpermitted massage therapists in Palo Alto revealed that the California Avenue business area had approximately 24 unregulated therapists. A number of those therapists are working without permits in solo establishments, in violation of the suspended ordinance. There are currently three businesses within Palo Alto that are permitted as massage establishments; Watercourse Way, Body Kneads, and Massage February 14, 2012 Page 2 of 12 (ID # 2287) Therapy Center. There are four similar businesses in Palo Alto that are not permitted as massage establishments: Equinox, La Belle Day Spa, Destino Spa, and Happy Feet. The Police Department contacted the California Massage Therapy Council (CAMTC) for their regulations on massage therapy. The CAMTC is a public nonprofit benefit corporation established by the State legislature in 2009 to regulate massage practice. Based on the CAMTC regulations and the ordinances of other municipalities, the Police Department and City Attorney’s Office determined it was necessary to redraft major portions of the City’s existing ordinance. These recommended changes include adding an additional massage therapist classification, and suggesting changes to permitting fees. The proposed fee adjustments are consistent with the fees charged by other major cities within Santa Clara County and adjacent counties. State Legislation Senate Bill 731 and Business and Professions Code 4600 Senate Bill (SB) 731, adopted in September 2009, enacted legislation impacting the ability of municipalities to regulate massage establishments (Attachment C). It also created a public nonprofit benefit corporation, the California Massage Therapy Council (CAMTC), and authorized CAMTC to regulate and standardize the issuance of massage therapist and practitioner certificates throughout the state. SB 731 prohibited any city or county from enacting ordinances regulating the practice of massage by CAMTC certificate holders. Under SB 731, persons who apply for and are granted a massage therapist or practitioner certificate are exempt from any local ordinances regulating massage. Under State Law (B&P section 4612), massage practitioners with a valid state certificate may practice massage in any jurisdiction, without having to obtain additional permits from any local regulating body (Attachment D). In addition, the code prohibits local regulating bodies from adding massage specific regulations to massage businesses operated by CAMTC certificate holders. The intent of the bill is to provide uniform regulations statewide and to eliminate the disparate treatment of massage establishments. The code allows local jurisdictions to adopt reasonable health and safety requirements for massage establishments and provides the authority for local jurisdictions to establish an application process for massage practitioners and establishments that choose not to certify through CAMTC. The City of Palo Alto’s existing massage ordinance is not consistent with Senate Bill 731 and includes requirements that are prohibited by SB 731. Assembly Bill 619, approved by the Governor August 3, 2011 On January 1, 2012, new legislation went into effect (AB 619), amending SB 731 and expanding the ability of the CAMTC to enact regulatory powers over certified massage practitioners and therapists. AB 619 changed some of the CAMTC certification renewal dates, required certificate holders to display their certificates and removed some certificate holder liability. CAMTC Guidelines February 14, 2012 Page 3 of 12 (ID # 2287) Business and Professions Code 4600 establishes the CAMTC guidelines for two separate classifications for massage workers: Massage Practitioner and Massage Therapist. The application and certification process for both certifications require education hours in excess of what the City of Palo Alto’s suspended massage ordinance currently requires. The CAMTC contracts with investigators to carefully review the background and qualifications of each applicant prior to approving certification. The following is the criteria for certification by the CAMTC: 4601(a) Massage practitioner: ·The applicant must be 18 years or older. ·Must have successfully completed 250 hours of education from a CAMTC approved school. ·Provide proof of official tax returns. ·Pass a DOJ and FBI background check. ·Have no disqualifying criminal history. 4601(c) Massage Therapist: ·The applicant must be 18 years or older. ·Must have successfully completed from a CAMTC approved school 500 hours of education. ·Must pass a massage and bodywork competency assessment test. ·Provide proof of official tax returns. ·Pass a DOJ and FBI background check. ·Have no disqualifying criminal history. State Law Summary ALLOWED PROHIBITED Local agency may verify information and receive the state certificate holder’s history from CAMTC. Local agency cannot require CAMTC certified massage therapists to obtain a license, permit or other authorization to practice massage. Local agency may adopt reasonable health and safety requirements, i.e., cleanliness of massage rooms, towels and linens, reasonable attire and personal hygiene for persons providing massage services providing it does not impose additional qualifications such as medical exams, background checks or other criteria. Local agency cannot enact ordinances, regulations, rules, requirements, restrictions, land use regulations, moratoria, conditional use permits or zoning requirements that are different than those requirements that are uniformly applied to all individuals and businesses providing professional services. Local agency may require file copies or other evidence of state certification and must have on premise for review. Local agency cannot enact or enforce existing local building code or physical facility requirements that do not uniformly apply to other professional or personal service February 14, 2012 Page 4 of 12 (ID # 2287) businesses. Local agency may require owner or operator to be responsible for conduct of all employees or independent contractors working on premises of the business, and revoke, or suspend for violations on the premises. Local agency cannot require unlocked doors when there is no staff available to ensure security for clients and massage staff who are behind closed doors or require windows that provide a view into the rooms that interfere with the privacy of clients of the massage business. Local agency may conduct reasonable inspections. Local agency may require the owner/operator to notify the city of any change to name, management or conveyance of the business to another person. Local agency can require a background check on an owner who owns more than 5% of the business and is not state certified. The intention of the state law is to enable consumers to identify legitimate and professional massage therapists and businesses by establishing certain standards and requiring background checks and fingerprinting. In addition, the CAMTC investigates and approves schools of massage that meet CAMTC criteria. CAMTC maintains a list of “suspect” schools and has authority to deny or revoke certifications. Other Municipal Massage Ordinances Other local cities and counties such as Redwood City and the San Mateo County Sheriff’s Office are currently updating their municipal codes relating to massage to comply with SB 731 and AB 619. Other municipalities such as the Cities of San Mateo, Foster City, Belmont, and Burlingame continue to operate with their existing city processes and exempt CAMTC certified therapists, practitioners, and establishments from city regulations. A summary of local municipalities’ massage ordinances follows: ·Santa Rosa, San Rafael, and San Carlos have adopted ordinances that remove the option for city permits and require all massage therapists in their respective jurisdictions to be CAMTC certified. Redwood City and the San Mateo County Sheriff’s office are considering similar ordinances. ·Los Gatos recently adopted an ordinance allowing for two methods of obtaining a permit. This system provides the option of two complying permits; either through CAMTC or through the local permitting process. ·Sunnyvale adopted a similar ordinance. Massage practitioners have two options to comply with the ordinance. They can obtain a massage license issued by the director of public safety by meeting City certification requirements or obtain certification February 14, 2012 Page 5 of 12 (ID # 2287) through the CAMTC process. The Sunnyvale ordinance requires a higher minimum of liability coverage than surrounding cities. ·Mountain View recently updated its massage ordinance which also allows two methods of obtaining a massage permit. Mountain View has included unique establishment and practitioner classifications in its massage ordinance that have specific requirements. The classifications are “Non-certified Massage Permit” and “Non-certified Massage Establishment Practitioner.” Mountain View’s defines a non-certified massage practitioner as a massage practitioner who performs massage in an open and common room without partitions, and the individual in receipt of the massage remains fully clothed and does not disrobe except below the knee. Non- certified massage establishments are defined as establishments that employ exclusively non-certified practitioners. Other than this exemption, the same requirements applicable to normal massage establishments apply to non-certified massage establishments. Discussion The City of Palo Alto’s proposed massage ordinance has been revised to comply with current state laws, including revised municipal fees for permits and provides the option of a local permitting process as an alternative to CAMTC certification. City of Palo Alto Massage Ordinance Proposal The City of Palo Alto Massage Ordinance provides for the orderly regulation of massage establishments and massage technicians in the interests of the public health, safety, and welfare by providing certain minimum qualifications for the operators of massage establishments and for massage technicians and trainees. Staff’s proposed ordinance allows two methods for certification. Massage practitioners can obtain a CAMTC certificate, which will permit them to operate without additional requirements or certification. Those practitioners who do not obtain CAMTC certification can obtain a permit from the City. The proposed ordinance mandates non-CAMTC certified applicants obtain a DOJ fingerprint check and criminal history check. Non-CAMTC applicants must have minimum education hours from an accredited school. The proposed ordinance has less stringent requirements for City applicants than the requirements of CAMTC. The educational hours for a City permit are 200; CAMTC requires either 250 or 500 hours depending on certification level. A grace period of 18 months will be granted to previously permitted Palo Alto therapists to allow the therapists to meet the required additional education. The proposed ordinance would require massage therapists to receive education from schools accredited by the Bureau for Private Post Secondary Education, a government institution of the Department of Consumer Affairs. The City of Palo Alto proposed massage ordinance (Attachment F) encompasses the following changes to the 1974 ordinance: February 14, 2012 Page 6 of 12 (ID # 2287) ·Adds language to exempt CAMTC certificate holders from obtaining an additional City massage permit. ·Increases the education hours (from an accredited school) required for therapists from the current 100 hours to 200 hours. ·Creates a new category of establishment, a sole proprietor, allowing a single person massage business to operate at a fixed location and reduces establishment fees. ·Adds the requirement of malpractice insurance, a minimum of $100,000 liability by all establishments, sole proprietors,and businesses supporting accessory massage technicians. ·Adds the requirement that massage technician permits be on display in a conspicuous location in all establishments. ·Requires all establishments to maintain limited client records including contact information, to be furnished upon court order to investigating City officials. ·Eliminates any special building requirements for massage establishments, as required by SB 731. ·Eliminates zoning requirements specifically targeting massage establishments. ·Adds the ability to deny massage technician permit issuance to any person the CAMTC has previously revoked, suspended, or denied. Permitting fees were determined by estimating staff time required for the permitting process and a survey of surrounding agencies’ fees (Attachment G). The City of Palo Alto’s review of those fees concluded that reasonable annual massage therapist and establishment rates for the City are as follows: Massage Establishments (New) $750 (Renewal) $450 Sole Proprietor establishment (New) $350 (Renewal) $150 Massage Technician (New) $300 (Renewal) $150 Community Discussion Following the creation of the draft ordinance, police staff posted the draft ordinance on the City’s website. Staff invited massage therapists and establishment proprietors operating in Palo Alto to a series of community meetings. The two meetings were attended by police staff and the Assistant City Attorney on April 5, 2011 and June 2, 2011. A CAMTC Board Member attended the June 2nd meeting. On May 18, 2011, Police Department staff held a multi- jurisdictional meeting with the CAMTC board members and staff from other municipalities to clarify the intent and reading of SB 731. The following paragraphs outline the specific meeting dates and discussion. April 4, 2011-Meeting with Watercourse Way Representatives Police Department staff met with the business owner and an administrator from Watercourse Way (WCW), a massage establishment in Palo Alto. WCW staff expressed concerns about the February 14, 2012 Page 7 of 12 (ID # 2287) potential impact the updated massage ordinance would have on their business. WCW staff felt that the ordinance did not comply with B&P 4601 as it was written and that it was unfairly targeting their business. WCW staff thought the fees were unfair and questioned why they were going to be assessed after 15 years of no enforcement. WCW staff was also concerned about the change in zoning ordinances for massage business and the possibility of additional competition. Department staff noted all of the concerns and WCW representatives were included in subsequent discussions and review of the draft ordinance. Community Meeting on April 5, 2011 On April 5, 2011, a general community meeting was held in the Council Chambers to discuss the draft ordinance. The meeting was attended by police staff and the Assistant City Attorney. Approximately 60-70 persons, many of whom were practitioners, attended the meeting. The proposed changes to the ordinance were read aloud for the community members. Staff explained the reasons for updating the ordinance and acknowledged that considerable time had passed since the City stopped assessing fees for massage permitting and enforcing of the existing ordinance. Staff explained the review process of other municipal ordinances and the research conducted into new State laws regulating the massage industry. Staff also supplied printed copies of the draft ordinance. Community members voiced a number of concerns during the meeting. A principal concern with the initial draft was a requirement that all establishments must maintain a “log book,” recording information about the client including contact information, services rendered, and date and time of service, to be furnished to Police personnel upon request. Other municipalities have this requirement to assist in criminal investigations. Massage establishment proprietors challenged the legality of the log book. Community members also wanted to eliminate the requirement of a citizen needing a physician’s note to allow in-home or “outcall” massage practice, feeling it was an undue burden on the therapist and client. In addition, some practitioners did not think it was necessary to have to provide a locked receptacle for securing client’s personal items. Members requested a “grandfather” provision, waiving additional education requirements for therapists currently permitted with the City. Staff assured the community members that all of their input and concerns would be considered before a final draft of the ordinance was authored. May 5, 2011 meeting with Happy Feet owner Police Department staff met with the owner of Happy Feet in Palo Alto, Mr. Bertlesen. Happy Feet is an unpermitted massage establishment that offers low cost full body massage with the clients fully clothed. Mr. Bertlesen does not feel that his business of “reflexology” and “foot massage” met the definition of “massage” as defined in the City’s ordinance. Mr. Bertlesen believes that his employees should be exempt from meeting the education requirements of the ordinance and that they should not have to be permitted as massage technicians with the City. His employees are not CAMTC certified. Happy Feet employees do not have any verifiable education in massage technique. Mr. Bertlesen stated the employees of Happy Feet are paid February 14, 2012 Page 8 of 12 (ID # 2287) low wages, and only for the actual time they spend doing massage. Happy Feet’s business model keeps his low-cost massage business operating, and Mr. Bertlesen stated if his employees were required to meet certification standards they would leave his business for other employment. Staff listened to Mr. Bertlesen’s concerns and reviewed the definition of “massage” with him. The hands-on nature of the full body massage that Happy Feet provides clearly puts the business within the category of a massage establishment. Staff discussed the possibility of allowing an exemption for a foot massage only business. Staff advised Mr. Bertlesen that if his business provided full body massage the therapists would be required to meet the certification standards in the ordinance. Staff offered suggestions such as allowing extra time for him to bring in a CAMTC certified trainer who spoke other languages, so that his staff could meet the education requirements of the City’s ordinance. May 18, 2011-Multi-Jurisdictional CAMTC Meeting In order to fully understand and comply with SB 731 regulations, police staff organized a meeting with CAMTC board members to explain the State Council’s purpose and regulatory function. Representatives from other cities were invited to the meeting and were in attendance. The CAMTC board members clarified how municipalities can enforce their own massage ordinances. The CAMTC recommended the option that cities adopt a rule to only allow CAMTC certified practitioners and therapists to operate within their jurisdiction. That option would allow for very little oversight and regulation as CAMTC certificate holders are exempt from the City permit process to practice massage. The CAMTC also has stringent education guidelines, completes thorough background checks, and has the ability to suspend or revoke certifications upon validated complaints. The requirements for CAMTC certification are more stringent than the proposed City ordinance. If the City of Palo Alto adopted an ordinance that only CAMTC certified therapists work within the city approximately 50 percent of the current therapists would not be able to work until they gained the required certification. May 19, 2011 and May 26, 2011-Small Group Massage Therapist Meetings Staff met one on one with therapists representing large businesses, as well as sole- proprietorships. The meetings were held to discuss areas of contention and to review an updated draft of the ordinance. The topics of discussions included displaying photographs of the permit holders, appropriate closing times for establishments, and outcall issues. Final Draft changes Following the community meetings, the meeting with CAMTC, and the one on one meeting with massage therapists, staff re-visited several major portions of the draft ordinance. The ordinance was changed taking into consideration the concerns of the massage practitioners and business owners. The following changes were made: February 14, 2012 Page 9 of 12 (ID # 2287) ·Logbooks: Many cities require massage establishments to maintain client records reflecting type of service rendered and basic client contact information. The records are supposed to be made available for law enforcement inspection upon the complaint of criminal activity that may have occurred at the establishment, to aid in the investigation. The logbook mandate is a legal request from municipalities. In order to address privacy concerns, the proposed ordinance requires that client information be recorded in some manner; however the information would be made available to law enforcement personnel only pursuant to a court order. ·Education:The existing ordinance required 100 hours of education prior to permit issuance. That requirement is far below the 500 hours required of CAMTC certified therapists and well below the requirements of other comparable municipalities. The proposed ordinance requires 200 hours of education. A grace period of 18 months would be granted to previously permitted therapists to allow the therapists to meet the required additional education. The staff recommendation is acceptable to most members of the massage community. ·Definition: Staff recommends keeping the definition of “massage establishment” as follows; “Massage establishment” means any establishment with more than one massage technician having a fixed place of business where any firm, association, partnership, corporation, joint venture or combination of individuals engages in, conducts, carries on or permits to be engaged in, conducted or carried on massages, baths, or health treatments involving massage or baths, where massage is part of primary function of the business.Only one currently unpermitted establishment disagreed with this definition, contending that full body massage with clothing on did not fall under the category of a massage establishment. ·Wording: The massage community at large felt the wording in previous drafts was unclear in respect to differentiating between state certification and city permits. Staff made changes to the ordinance to clearly establish that state certified massage therapists and technicians were exempt from City permitting requirements. ·Ability to Deny Permit: In section 4.54.030, staff added the ability to deny permit issuance if a person had previously been revoked, suspended, or denied a permit from the CAMTC. No persons contested this addition. ·Photos:The original draft ordinance contained a provision mandating permit holders display their City massage technician permit with photograph at their place of work for clients to view (CAMTC certified persons must do this). Community members commented that they felt the photo requirement was unfair and that clients may see photos and choose a therapist based on their appearance. Staff agreed the establishments can meet this requirement of public display by maintaining a permit binder to be furnished upon client request. ·Outcall: Staff recommends that the City not issue permits to allow massage practitioners to perform “outcall massage.”. This is consistent with the current practices of many municipalities. The existing ordinance allowed outcall only with a doctor’s prescription. This exception rarely occurred and proved difficult for City staff to verify. Staff February 14, 2012 Page 10 of 12 (ID # 2287) recommends prohibiting outcall for all City-permitted therapists and allowing outcall for state-certified therapists in accordance with state law. Second Community Meeting-June 2, 2011 Staff held a second community meeting to address issues with the updated draft ordinance. Community members were able to review the draft prior to the meeting. Staff reviewed the areas of discussion and highlighted the changes. There was little discussion or questions after the review of the final draft. Options for Regulating Massage Staff has drafted a proposed ordinance that brings it into compliance with State Law. The City has several options on how it may regulate massage practice. Those options are: 1. Allow CAMTC certified workers and businesses only. The benefits of this approach would allow for consistency among workers and businesses as to rules and regulations. The City would be unable to regulate such workers and businesses differently than other professional services. In Palo Alto, 50 percent of persons operating as permitted massage therapists do not have state certification. Staff believes having a state certification only policy is unfair to current practitioners that have been working for years in the City without state certification. The three current establishments in Palo Alto are not state certified. Under existing state law, a worker would have had until January 1, 2012 to demonstrate that they have the equivalent experience and education to justify certification without meeting the 250-500 hour requirement from an approved school, pass the background process, and pay state fees. The massage community of Palo Alto was not in favor of this approach, as many persons would be unable remain working in the city due to the amount of time it takes to receive approved education and complete the state certification process. 2. Create a hybrid approach with one set of regulations for City permitted workers and businesses and a separate set of regulations for CAMTC certified workers and businesses. This allows the City to retain its authority over those workers and businesses that do not become state certified and allows the City to retain authority in limited areas over state certified workers and businesses. The disadvantage of this approach is that it is cumbersome, creates additional work, and causes potential confusion between the two processes. 3. Continue with the existing City process, with modification for state regulations, and exempt CAMTC certified workers and establishments from the City regulation. The benefit of this approach is that it is simple and involves no substantial change to existing city law, with the exception of the state-mandated changes. This allows for currently working therapists to continue working in Palo Alto as they have been, after obtaining a City permit. Recommendation February 14, 2012 Page 11 of 12 (ID # 2287) Staff recommends the adoption of Option #3. Staff recommends updating the existing ordinance to comply with state law. This is the best option for both the City and the therapists who work in Palo Alto. The community meetings provided the opportunity for the massage community to have input and voice concerns about the proposed changes to the ordinance. Those concerns were identified, vetted, and addressed in the follow-up community meetings and the one-on-one meetings with community members. Individual members of the massage community assisted in the final review of the proposed ordinance. The proposed ordinance was revised with consideration of the input from the meeting participants. The proposed ordinance recognizes the needs of the massage community and represents compromise by the City and the massage community. The proposed ordinance recognizes and allows the practice of massage therapy in the City of Palo Alto. The ordinance allows existing massage technicians and establishments to continue doing business, and provides a reasonable timeline for therapists to comply with the educational requirements of the ordinance. The intent of the ordinance is to ensure that those who offer massage services are qualified, trained, and conduct their work in a lawful and professional manner. Persons who choose to patronize the therapists within Palo Alto can have confidence that the therapists have successfully met standardized qualifications. The proposed ordinance is consistent with other local municipalities and State standards. The ordinance also allows greater flexibility for business persons to operate within the City in a safe and reasonable manner. The passage of the proposed ordinance will allow the City to resume consistent enforcement of massage practice within Palo Alto. Resource Impact The passage of the proposed ordinance will require considerable staff time to get all current therapists permitted and sole proprietorships and establishments permitted/inspected. The ordinance establishes a grace period of 18 months for educational requirements and 60 days for massage establishments to become compliant. The ordinance requires annual inspections by a Police Department staff member that can be completed within the existing job classification of Code Enforcement Officer and within the existing Police Department budget. Larry Perlin, from the Planning Department, was consulted and a building inspector will be notified of inspection times and days so they may send a representative when available. Staff costs will be recovered through the collection of permit fees. Attachments: ·Attachment A -PAMC 4.54 (PDF) ·Attachment B -Temp Permit (PDF) ·Attachment C -SB 731 (PDF) February 14, 2012 Page 12 of 12 (ID # 2287) ·Attachment D -B&P Code 10.5 (PDF) ·Attachment E -AB 619 (PDF) ·Attachment F -Proposed PAMC 4.54 (PDF) ·Attachment G -Other Cities'Fees (PDF) ·Attachment H -Letters to Council re Massage Ordinance 020812 (PDF) Prepared By:April Wagner, Police Lieutenant Department Head:Dennis Burns, Police Chief City Manager Approval: ____________________________________ James Keene, City Manager Attachment A Sections: Palo Alto Municipal Code Chapter 4.54 MASSAGE ESTABLISHMENTS 4.54.010 Purpose and intent. 4.54.020 Definitions. 4.54.030 Massage establishment license required. 4.54.040 Massage establishment license application fee. 4.54.050 Application for massage establishment license. 4.54.060 Massage technician permit required. 4.54.070 Massage technician application fee. 4.54.080 Application for massage technician permit. 4.54.090 Massage technician trainee. 4.54.100 Appeal. Page lof12 4.54.110 Massage establishment facilities and operations requirements. 4.54.120 Inspection by officials. 4.54.130 Business name. 4.54.140 Business location change. 4.54.150 Sale or transfer of massage establishment interest. 4.54.160 Display of permits, licenses. 4.54.170 Exemptions. 4.54.180 Grounds for denial, probation, and disciplinary action. 4.54.190 Hearing. 4.54.200 Application to existing establishments and technicians. http://www.amlegal.comlalpscripts/get-content.aspx 11/22/2011 Page 20f12 4.54.210 Application of other code provisions. 4.54.010 Purpose and intent. It is the purpose and intent of this chapter to provide for the orderly regulation of massage establishments and massage technicians, as defined in this chapter, in the interests of the public health, safety and welfare by providing certain minimum building, sanitation and health standards for massage establishments, and by providing certain minimum qualifications for the operators of massage establishments and for massage technicians and massage technician trainees. (Ord.2833 § 1 (part), 1974) 4.54.020 Definitions. (a) For the purpose of this chapter, unless the context clearly requires a different meaning, the words, terms and phrases set forth in this section shall have the meanings given them in this section: (1) "Massage" means any method of pressure on, or friction against, or stroking, kneading, rubbing, tapping, pounding, vibrating or stimulating the external parts of the human body with the hands or with the aid of any mechanical or electrical apparatus, or other appliances or devices, with or without such supplementary aids as rubbing alcohol, liniment, antiseptic, oil, powder, cream, lotion, ointment or other similar preparations. (2) "Massage establishment" means any establishment having a fixed place of business where any individual, firm, association, partnership, corporation, joint venture or combination of individuals engages in, conducts, carries on or permits to be engaged in, conducted or carried on massages, baths or health treatments involving massage or baths as the principal functions. (3) "Massage technician" means any person who administers massages, baths or health treatments involving massages or baths as the principal functions to another person for any consideration whatsoever. (4) "Recognized school of massage" means any school or institution of learning which teaches the theory, ethics, practice, profession and work of massage, which school or institution of learning requires a residence course of study of not fewer than seventy hours to be given in not more than three calendar months before the student shall be furnished with a diploma or certificate of graduation from such school or institution of learning following the successful completion of such course of study or learning, and which school has been approved pursuant to California Education Code Section 29025, or, if said school is not located in California, has complied with standards commensurate with those required in said Section 29025. Any school or institution of learning offering or allowing correspondence course credit not requiring actual attendance at class, or courses of a massage technician not approved by the California State Department of Education shall not be deemed a "recognized school of massage." (5) "License" means the business license to operate a massage establishment as required by this chapter. (6) "Permit" means the permit to engage in the activities of a massage technician or a massage technician trainee as required by this chapter. http://www.amlegal.com/alpscriptsl get ~content.aspx 11/22/2011 Page 3 of 12 (7) "Person" means aJ1Y individual, firm, association, partnership, corporation, joint venture or combination of individuals. (Ord. 2833 § 1 (part), 1974) 4.54.030 Massage establishment license required. (a) It is unlawful for any person to engage in, conduct or carry on, in or upon any premises within the city the operation of massage establishment without the license obtained from the chief of police as required by this chapter. A massage establishment license shall be issued to any person who has complied with the requirements of Sections 4.54.050 and 4.54.110 of this chapter, and all other applicable provisions of this code; unless grounds for denial of such license are found to exist. In addition to those set forth in Section 4.04.140, grounds for denial include: (1 ) The applicant made a material misstatement in the application for a license; (2) The applicant has, within five years immediately preceding the date of the filing of the application, been convicted in a court of competent jurisdiction of an offense involving conduct which requires registration under California Penal Code Section 290, or any violations of Sections 311 through 311.7, 3l3.1, 314, 315, 316, 318 or 647(a), 647(b), 647(d), or 647(h) of the California Penal Code, or of any offense involving theft of property or violence; (3) That the operation of a massage establishment, as proposed by the applicant if permitted, would not comply with all applicable laws including, but not limited to, all city ordinances and regulations; (4) That the operation of the proposed massage establishment is likely to be injurious to the health, safety, welfare, and interest of the people of the city; (5) That the applicant is lacking in the background and qualifications to conduct a bona fide massage establishment; or (6) That the applicant has violated any provision of this chapter, or of any similar ordinance, law, rule or regulation of another public agency which regulates the operation of massage establishments. (Ord. 3113 § 4, 1979: Ord. 2946 § 1, 1976: Ord. 2921 § 9, 1976: Ord. 2833 § 1 (part), 1974) 4.54.040 Massage establishment license application fee. Any application for a license to operate a massage establishment shall be accompanied by a nonrefundable fee as set forth in the municipal fee schedule. The application fee shall be used to defray, in part, the costs of investigation and report, and is not made in lieu of any other fees or taxes required under this code. A license to operate a massage establishment shall be renewed annually. The renewal fee shall be as set forth in the municipal fee schedule. (Ord. 2960 § 27, 1976: Ord.2921 § 1, 1976: Ord. 2833 § 1 (part), 1974) http://www.amlegal.comlalpscripts/get-content.aspx 11122/2011 Page 4 of 12 4.54.050 Application for massage establishment license. (a) Any application for a license to operate a massage establishment shall be made with the chief of police. Within thirty working days following receipt of a completed application, the chief of police shall either issue the pennit or mail a written statement of his reasons for denial thereof. The application shall set forth the exact nature of the massage, bath or health treatment to be administered, the proposed place of business and facilities therefor, and the name and address of each applicant. The chief of police may request the applicant to allow fingerprints to be taken when needed for the purpose of establishing identification. In addition to the requirements of Chapter 4.04 and this section, any applicant shall furnish the following information: (1) The previous addresses of applicant, if any, for a period of three years immediately prior to the date of the application and the dates of residence at each; (2) Written proof that the applicant is at least eighteen years of age; (3) Applicant's height, weight, color of eyes and hair; (4) The applicant shall allow the police officer processing the application to take photographs of the applicant; (5) Business, occupation or employment history ofthe applicant for the three years immediately preceding the date of the application; (6) If the applicant is a corporation, the name of the corporation shall be set forth exactly as shown in its articles of incorporation, together with the names and residence addresses of each of its officers, directors, and each stockholder holding more than five percent of the stock of the corporation. If the applicant is a partnership, the application shall set forth the name and residence address of each of the partners, including limited partners. If one or more of the partners is a corporation, the provisions of this section pertaining to a corporate applicant shall apply; (7) The names and residence addresses of all persons currently employed or intended to be employed in the massage establishment, regardless of the nature of the employment, other than any person licensed pursuant to Section 4.54.060, along with the proposed or actual nature of the work performed or to be performed, and recent passport-size photographs, suitable to the police officer processing the application, of each such employee. The chief of police may require such employee to allow fingerprints to be taken for the purpose of identification. Any applicant or licensee shall notify the city in writing of the names, addresses and nature of the work, of any new employees, within five days of such employment, and supply the photographs described in this subsection. Such new employees shall allow fingerprints to be taken for the purpose of identification upon request. "Employee" includes every owner, partner, manager, supervisor and worker, whether paid or not, who renders personal services of any nature in the operation of a massage establishment; (8) Such other information as may be deemed necessary by the chief of police. (Ord.2946 § 2, 1976: Ord. 2921 § 9, 1976: Ord. 2833 § 1 (part), 1974) http://www.amlegal.comlalpscripts/get-content.aspx 11122/2011 Page 5 of 12 4.54.060 Massage technician permit required. (a) It is unlawful for any person to act as a massage technician or a massage technician trainee unless such person holds a valid permit issued by the chief of police. A massage technician permit shall be issued to any person who has fulfilled the requirements of Section 4.54.080, and all other applicable provisions of this code; unless grounds for denial of such permit are found to exist. In addition to those set forth in Section 4.04.140, grounds for denial include: (1) The applicant made a material misstatement in the application for a license; (2) The applicant has, within five years immediately preceding the date of the flling of the application, been convicted in a court of competent jurisdiction of an offense involving conduct which requires registration under California Penal Code Section 290, or any violations of Sections 311 through 311.7,313.1,314,315,316,318 or 647(a), 647(b), 647(d), or 647(h) of the California Penal Code, or of any offense involving theft of property or violence; (3) That the issuance of the permit is likely to be injurious to the health, safety, welfare, and interest of the people of the city; (4) That the applicant is lacking in the background and qualifications to act as a massage technician; or (5) That the applicant has violated any provision of this chapter, or of any similar ordinance, law, rule or regulation of another public agency which regulates the operation of massage establishments or massage technicians. (Ord. 3113 § 5, 1979: Ord. 2921 §§ 2, 9, 1976: Ord. 2833 § 1 (part), 1974) 4.54.070 Massage technician application fee. Any application for a permit to act as a massage technician shall be accompanied by a nonrefundable fee as set forth in the municipal fee schedule. A massage technician permit shall be renewed annually. The renewal fee shall be as set forth in the municipal fee schedule. Any person who applies for a license to operate a massage establishment and who desires to act as a massage technician within said establishment shall not be required to furnish the information set forth in Section 4.54.080. (Ord.2960 § 28,1976: Ord. 2921 § 3,1976: Ord. 2833 § 1 (part), 1974) 4.54.080 Application for massage technician permit. (a) Any application for a permit to act as a massage technician shall be made with the chief of police. Within thirty working days following receipt of a completed application, the chief of police shall either issue the permit, or mail a written statement of his reasons for denial thereof. If he takes neither action, the permit shall be deemed to be issued. The chief of police may request the applicant to furnish fingerprints when needed for the purpose of establishing identification. In addition to the requirements of Chapter 4.04, the applicant shall furnish the following information: http://www.arnlegal.com/alpscripts/ get -content.aspx 1112212011 Page 6 of 12 (1) Name, residence address and telephone number; (2) Social security number and drivds license number, if any; (3) Applicant's weight, height, color of hair and eyes; (4) The applicant shall furnish a recent photograph of applicant to the police department official who processes the application; (5) Written evidence that the applicant is at least eighteen years of age; (6) Business, occupation or employment of the applicant for the three years immediately preceding the date of application; (7) The name and address of the establishment where the applicant is to be employed, and the name of the owner or operator of the same. Any massage technician granted a permit pursuant to this section must report a change in massage establishment employment within five days of said change; (8) The name and address of the recognized school of massage attended, the date attended, and a copy of the diploma or certificate of graduation awarded the applicant showing the applicant has completed not fewer than seventy hours of instruction, or written and verified proof that applicant has had at least five hundred hours' experience in the profession, work and method of massage as of the effective date of the ordinance codified in this chapter. (Ord. 2921 §§ 4, 9, 1976: Ord. 2833 § 1 (part) 1974) 4.54.090 Massage technician trainee. (a) Any person desiring to obtain a permit to act as a massage technician trainee shall make an application to the chief of police. Within thirty working days following receipt of a completed application, the chief of police shall either issue the permit, or mail a written statement of his reasons for denial thereof. If he takes neither action, the permit shall be deemed to be issued. A massage technician trainee permit shall be issued to any person who has fulfilled the requirements of Section 4.54.080 and who produces written proof that the applicant is currently emolled in a recognized school of massage, as defined in this chapter; of the date the applicant emolled in the recognized school of massage; and the scheduled date of graduation; and that the applicant has completed at least fifty hours of instruction and the date this instruction was completed; provided the applicant submits a letter signed by the owner or manager of a licensed massage establishment stating his immediate intent to employ the applicant to do massage as a trainee working under the direct supervision and control of a massage technician who has received a permit under the provisions ofthis chapter unless: (1) The applicant knowingly made a material misstatement in the application for the trainee permit; or (2) The applicant has, within five years immediately preceding the date of the filing of the application, been convicted in a court of competent jurisdiction of an offense involving conduct which requires registration under California Penal Code Section 290, or any violation of Sections 311 through 311.7,313.1,314,315,316,318 or 647(a), 647(b), 647(d) or 647(h) of the California Penal Code or of any offense involving theft of property. http://www.amlegal.com/alpscripts/get-content.aspx 11122/2011 Page 7 of 12 The trainee permit shall allow the student to work in a massage establishment under the supervision and direction of a massage technician who has received a permit issued under the provisions of this chapter; provided, however, no licensed massage technician shall be permitted to supervise more than two persons issued a trainee permit. The trainee permit shall expire three months from the date of issuance and shall not be renewed unless good cause is shown by the applicant for such renewal. No fee shall be required of a massage technician trainee applicant. The trainee must at all times comply with the laws relating to massage establishments, and the failure to comply may render the trainee ineligible to obtain a massage technician permit. Any massage technician trainee who, during the life of the trainee permit, completes the instruction required of a massage technician, shall be issued a massage technician permit upon payment of a massage technician application fee as set forth in the municipal fee schedule. (Ord. 2960 § 29, 1976: Ord. 2921 §§ 5,9, 1976: Ord. 2833 § 1 (part), 1974) 4.54.100 Appeal. In the event a permit or license application has been denied, the applicant shall proceed pursuant to the appeal and hearing provision in Chapter 4.04. (Ord. 2833 § 1 (part), 1974) 4.54.110 Massage establishment facilities and operations requirements. (a) All massage establishments shall comply with the following facilities and operations requirements: (1) Massage establishments shall comply with all code requirements. (2) A minimum of one tub or shower, and one toilet and wash basin shall be provided in every massage establishment. (3) Cabinets or other covered space shall be provided for the storage of clean linen. Approved receptacles shall be provided for the storage of all soiled linen and paper towels. (4) Minimum ventilation shall be provided in accordance with the building code of the city. To allow for adequate ventilation in cubicles, rooms and areas provided for patrons' use, which are not serviced directly by required window or mechanical systems of ventilation, partitions shall be constructed so that the height of partition does not exceed seventy-five percent of the floor-to-ceiling height of the area in which they are located. (5) All plumbing and electrical installations shall be installed under permit and inspection of the building inspection department, and such installations shall be installed in accordance with the Uniform Building Code and the Uniform Plumbing Code. (6) The walls in all rooms where water or steam baths are given shall have a washable, mold- resistant surface. http://www.amlegal.com/alpscripts/ get -content.aspx 11122/2011 Page 8 of12 (7) All lavatories or wash basins shall be provided with hot and cold running water, soap and single-service towels in wall-mounted dispensers. (8) Security deposit facilities capable of being locked by the patron or a security bag that may be carried by the patron shall be available for the protection of the valuables of the patrons. (9) Every portion of a massage establishment, including appliances, apparatus and personnel, shall be kept clean and operated in a sanitary condition. (10) All massage establishments shall be provided with clean and sanitary towels, sheets and linens in sufficient quantity. Towels, sheets and linens shall not be used by more than one person. Reuse of such linen is prohibited unless the same has fust been laundered. Heavy white paper may be substituted for sheets; provided, that such paper is used once for each person and then discarded into a sanitary receptacle. (11) All walls, ceilings, floors, pools, showers, bathtubs, steam rooms and all other physical facilities for the establishment must be in good repair and maintained in a clean and sanitary condition. Wet and dry heat rooms, steam or vapor rooms, or steam or vapor cabinets, shower compartments and toilet rooms shall be thoroughly cleaned and disinfected each day the business is in operation. Bathtubs shall be thoroughly cleaned and disinfected after each use. (12) Disinfecting agents and sterilizing equipment shall be provided for any instruments used in performing acts of massage and said instruments shall be disinfected and sterilized after each use. (13) Pads used on massage tables shall be covered with durable, washable plastic or other acceptable waterproof materiaL (14) (A) To protect patrons from potential health and sanitary hazards, all employees, massage technicians and massage technician trainees shall be clean and shall perform all services on the premises in full, clean outer garments. (B) Exception. A massage technician may perform services wearing no clothing or wearing less than full outer garments whep teaching a class gathered to learn the theory, practice, or work of massage, and when said class consists in part of massage by the technician or members of the gathered class. (15) Each service offered, the price thereof, and the minimum length of time such service shall be performed shall be posted in a conspicuous public location in each massage establishment. All letters and numbers shall be capitals, and not less than one-half inch in height. (16) (A) Massage establishments shall close and remain closed from eleven p.m. to nine a.m. (B) After one year of operation a massage establishment may be exempted from the hours restrictions of this section by the chief of police upon a written request which details the factual reasons supporting good cause for the exemption. The chief of police, in determining what constitutes good cause for this exemption from the hours restrictions, shall consider and weight the following factors: (i) The criteria outlined in Section 4.04.140 of Chapter 4.04; (ii) The criteria outlined in Section 4.54.030 of this chapter; http://www.am1egal.comlalpscripts/get-content.aspx 1112212011 Page 9 of 12 (iii) The impact which the massage establishment has had on the health, safety, and welfare of the local community, including, but not limited to, parking and traffic congestion; (iv) The massage establishment's compliance or noncompliance with all federal, state, and local laws, including, but not limited to, this municipal code. If, upon review of those factors, the chief of police determines that good cause does exist for the requested exemption, the chief may then exempt the particular massage establishment from the hours restrictions of this section. However, in no event shall any massage establishment close later than two a.m. nor open earlier than six a.m. (C) The exemption from the hours restrictions of this section shall be subject to review and renewal annually at the same time as the renewal ofthe underlying license and the same factual showing shall be made as that required for the initial exemption. The chief shall not grant an hours exemption unless said establishment has maintained the criteria specified in Section 4.54.11 0(a)(16)(B). (17) No massage establishment shall be allowed in the following locations: (A) Within two hundred fifty feet of the exterior property limits of any public or private elementary school, junior high school or high school; (B) Within two hundred fifty feet of the exterior limits of any district where residential use is the principal permitted use, including all R and RM districts, O-S districts, and any P-C or P-F districts where the principal use permitted or maintained is residential; or (C) Within twelve hundred feet of the ex-terior property limits of any other premises lawfully occupied by a massage establish-ment, by any establishment subject to the provisions of Chapter 4.55, any cardroom or hot tub/sauna establishment. For the purpose of determining compliance with this standard, as to, between and with respect to establishments lawfully in operation on the effective date of this section, priority between such existing establishments shall be assigned in accordance with the dates upon which said establishments commenced such lawful operations. All massage establishments lawfully in operation on the effective date of this section shall within sixty days of said date apply to the chief of police for a determination as to compliance with the provisions of this section. Said application shall be in such form as prescribed by the chief of police. Any massage establishment legally existing on the effective date of this subsection and which is not in compliance with the provisions of this subsection shall comply with said provisions on or before May 24, 1987; provided, however, that any such establishment which intends to in any way transfer ownership or alter or change the nature of any such massage establishment on or after the effective date of this subsection shall comply with the provisions of this subsection prior to such transfer, alteration or change. Any such use which at the expiration of said period is not in compliance with the provisions of this subsection shall at that time discontinue and abate its operation. Any massage establishment lawfully in operation upon the effective date of this subsection failing to comply with the provisions of this subsection shall be issued a limited-term license in lieu of its current license, containing a statement on its face reciting such noncompliance and the date by which compliance must be accomplished, and that said license shall not be renewed beyond said date. All distances referred to in this subsection shall be measured between the closest points on the http://www.am1egal.comlalpscripts/get-content.aspx 11122/2011 Page 10 of12 exterior property lines or area boundaries of the parcels or areas involved~ except that when a massage establishment subject to the provisions of this section occupies one unit of a multi-unit structure located on a single parcel~ distances shall be measured from the exterior boundaries of the unit so occupied. (18) Outcall Prohibited. No person shall engage in any of the services permitted under this chapter at any place other than an establishment licensed pursuant to Chapter 4.54, unless the patron possesses and presents a valid prescription or other writing from a licensed physician to the effect that the patron of such services cannot be treated at a licensed massage establishment. A record of every such prescription or other writing shall be obtained and kept by the person rendering the services for a period of one year. Such record shall show the name and address of the doctor, the date, and any prescription number. (Ord. 4642 § 3, 2000: Ord. 3592 § 1, 1985: Ord. 3113 § 6, 1979: Ord. 3095 § I, 1978: Ord. 2946 § 3, 1976: Ord. 2921 § 6, 1976: Ord. 2833 § 1 (part), 1974) 4.54.120 Inspection by officials. Any and all investigating officials of the city shall have the right to enter massage establishments from time to time during regular business hours to make reasonable inspections to observe and enforce compliance with building, fire, electrical, plumbing or health regulations. A warrant shall be obtained whenever required by law. (Ord.2833 § 1 (part), 1974) 4.54.130 Business name. No person licensed to operate a massage establishment shall operate under any name or conduct business under any designation not specified in the license. (Ord. 2833 § 1 (part), 1974) 4.54.140 Business location change. Upon a change of location of a massage establishment, an application to the chief of police shall be made, and such application shall be granted, provided all applicable provisions of this code are complied with and a change oflocation fee as set forth in the municipal fee schedule to defray, in part, the costs of investigation and report, has been paid to the city. (Ord. 2960 § 30, 1976: Ord. 2921 §§ 7, 9, 1976: Ord. 2833 § 1 (part), 1974) 4.54.150 Sale or transfer of massage establishment interest. A sale or transfer of any interest in a massage establishment, which interest would be reported as required in this chapter upon application for a massage establishment license, shall be reported to the chief of police within ten days of such sale or transfer. The chief of police shall investigate any person receiving any interest in a massage establishment as a result of such sale or transfer, and if such person http://www.amlegal.comlalpscripts/get-content.aspx 1112212011 Page 11 of12 satisfies the requirements relating to massage establishment license applicants, the existing license shall be endorsed to include such person. A fee as set forth in the municipal fee schedule shall be paid to the city for the investigation by the chief of police necessitated by each such sale or transfer. (Ord. 2960 § 31,1976: Ord. 2921 §§ 8,9,1976: Ord. 2833 § 1 (part), 1974) 4.54.160 Display of permits, licenses. The owner or operator of a massage establishment shall display the massage establishment license and the permit of each and every massage technician or massage technician trainee employed in the establishment in an open and conspicuous place on the premises. Passport-size photographs of the licensee and permittees shall be affixed to the respective license and permits on display pursuant to this section. Home addresses of massage technicians and massage technician trainees need not be displayed. (Ord. 2833 § 1 (part), 1974) 4.54.170 Exemptions~ (a) This chapter shall not apply to the following classes of individuals while engaged in the performance of the duties of their respective professions: (1) Physicians, surgeons, chiropractors, osteopaths or physical therapists who are duly licensed to practice their respective professions in the state of California; . (2) Nurses registered under the laws of the state of California; (3) Trainers of any amateur, semiprofessional or professional athlete or athletic team; (4) Barbers and beauticians who are duly licensed under the laws of the state of California. (Ord. 2833 § 1 (part), 1974) 4.54.180 Grounds for denial, probation, and disciplinary action. In addition to any provisions of this chapter, the grounds set forth in Section 4.04.140 shall apply to licenses and permits required under this chapter. Any circumstances constituting grounds for denial shall also constitute grounds for revocation, suspension or disciplinary action. (Ord. 3113 § 7,1979: Ord. 2833 § 1 (part), 1974) 4.54.190 Hearing. Any licensee or permittee whose license or permit has been suspended or revoked shall proceed pursuant to the appeal and hearing provisions of Chapter 4.04. http://www.amlegal.com/alpscriptslget-content.aspx 1112212011 Page 12 of 12 (Ord. 2833 § 1 (part)~ 1974) 4.54.200 Application to existing establishments and technicians. All operators of existing massage, bath or health treatment establishments, and all persons engaged in giving massage, bathing and health treatments in the city upon the effective date of this chapter shall comply with all application and other requirements within thirty days following the effective date of this chapter. (Ord. 2833 § 1 (part)~ 1974) 4.54.210 Application of other code provisions. Chapter 4.04 shall apply to the subject matter of this chapter in all respects, including those not specifically mentioned in this chapter. (Ord. 2833 § 1 (part), 1974) Pi~~I~im~G This Code of Ordinances and/or any other documents that appear on this site may not reflect the most current legislation adopted by the Municipality. American Legal Publishing Corporation provides these documents for informational purposes only. These documents should not be relied upon as the definitive authority for local legislation. Additionally, the formatting and pagination of the posted documents varies from the formatting and pagination of the official copy. The official printed copy of a Code of Ordinances should be consulted prior to any action being taken. For further information regarding the official version of any of this Code of Ordinances or other documents posted on this site, please contact the Municipality directly or contact American Legal Publishing toll-free at 800-445-5588. © 2011 American Legal Publishing Corporation techsupport@.~rnLegaJ.com 1.800.445.5588. http://www.amlegal.comlalpscriptslget-content.aspx 11122/2011 Attachment B January 25, 2011 Ideal Health Chiropractic 744 San Antonio Rd., Ste. 10 Palo Alto, California 94303 Dear Mr. ~i!y 9£ Palo Alto Police Department The normal permit renewal process for massage permits has been suspended due to pending changes to Palo Alto's massage ordinance. This letter will serve as your temporary massage technician permit. This permit will allow you to provide massage as an accessory service at Ideal Health Chiropractic, located at 744 San Antonio Rd., Ste. 10, Palo Alto, CA 94303, provided total massage services (other than those based on a diagnosed condition and completed within the scope of a State issued license) do not exceed 25% of the businesses overall activity. It will remain valid until after a new substantially modified massage code is enacted. This temporary permit will terminate at such time as the future massage code indicates as the date certain by which all permittees must have renewed their permits under the authority of the reenacted massage code. Please retain this permit. Until such time as a revised massage ordinance takes effect, massage will continue to be governed by Palo Alto's current Municipal Code Chapter 4.54. You will t;>e advised of meeting dates as the proposed ordinance moves forward. Sincerely, Heather Johnson Code Enforcement Officer Palo Alto Police Department 275 Forest Avenue Palo Alto, CA 94301 Direct: (650) 329-2147 Fax: (650) 326-8819 Email: heather.johnson@cityofpaloalto.org Website: www.city.palo-alto.ca.us/ Cc: Dr. Fax: Printed with soy-based inks on 100% recycled paper processed without chlorine 275 Forest Avenue Palo Alto, CA 94301 650.329.2406 650.329.2565 fax 650.617.3120 Administration fax Attachment C Senate Bill No. 731 CHAPTER 384 An act to add and repeal Chapter 10.5 (commencing with Section 4600) of Division 2 of the Business and Professions Code, relating to massage therapy. [Approved by Governor September 27, 2008. Filed with Secretary of State September 27, 2008.J LEGISLATIVE COUNSEL'S DIGEST SB 731, Oropeza. Massage therapy. Existing law provides for the regulation of various healing arts professionals, including physicians and surgeons, chiropractors, physical therapists, and acupuncturists. Existing law authorizes the legislative body of a city or county to enact ordinances providing for the licensing and regulation of the business of massage when carried on within the city or county. This bill would, commencing September 1, 2009, provide for the certification of massage practitioners and massage therapists by the Massage Therapy Organization, which would be a nonprofit organization meeting specified requirements, and would impose certain duties on the organization. The bill would require applicants for certification to be 18 years of age or older, to meet specified educational criteria, to provide to the organization and update certain information, to provide fingerprints for submission to the Department of Justice for a criminal background check, and to pay fees required by the organization. The bill would require the Department of Justice to review specified information and to provide to the organization fitness determinations and certain other information. The bill would allow the organization to take certain disciplinary action against certificate holders and would require the organization to take certain action with regard to suspending or revoking a certificate if the certificate holder has been alTested for, and charged with, specified crimes. The bill would make it an unfair business practice for a person to state, advertise, or represent that he or she is certified or licensed by a governmental agency as a massage therapist or practitioner, or to make other false representations, as specified. The bill would prohibit a city, county, or city and county from enacting certain ordinances regulating the practice of massage by a certificate holder, as specified. The bill would make its provisions subject to review by the Joint Committee on Boards, Commissions, and Consumer Protection. The bill would repeal these provisions on January 1,2016. 90 Ch.384 2- The people of the State of California do enact asfollows: SECTION 1. It is the intent of this act to create a voluntary certification for the massage therapy profession that will enable consumers to easily identify credible certified massage therapists; assure that certified massage therapists have completed sufficient training at approved schools; phase in increased education and training standards consistent with other states; assure that massage therapy can no longer be used as a subterfuge to violate subdivision (a) or (b) of Section 647 of the Penal Code; and to provide a self-funded nonprofit oversight body to approve certification and education requirements for massage therapists. SEC. 2. Chapter 10.5 (commencing with Section 4600) is added to Division 2 of the Business and Professions Code, to read: CHAPTER 10.5. MASSAGE THERAPISTS 4600. As used in this chapter, the following terms shall have the following meanings: (a) "Approved school" or "approved massage school" means a facility that meets minimum standards for training and curriculum in massage and related subjects and that is approved by any of the following: (1) The Bureau for Private Postsecondary and Vocational Education pursuant to former Section 94739 of the Education Code prior to July 1, 2007, and as of the date on which an applicant met the requirements of paragraph (2) of subdivision (b) or subparagraph (A) of paragraph (2) of subdivision (c) of Section 4601. (2) The Department of Consumer Affairs. (3) An institution accredited by the Accrediting Commission for Senior Colleges and Universities or the Accrediting Commission for Community and Junior Colleges of the Western Association of Schools and Colleges and that is one of the following: (A) A public institution. (B) An institution incorporated and lawfully operating as a nonprofit public benefit corporation 'pursuant to Part 2 (commencing with Section 511 0) of Division 2 of Title 1 of the Corporations Code, and that is not managed by any entity for profit. (C) A for-profit institution. (D) An institution that does not meet all of the criteria in subparagraph (B) that is incorporated and lawfully operating as a nonprofit public benefit corporation pursuant to Part 2 (commencing with Section 511 0) of Division 2 of Title 1 of the Corporations Code, that has been in continuous operation since April 15, 1997, and that is not managed by any entity for profit. (4) A college or university of the state higher education system, as defined in Section 100850 of the Education Code. 90 -3 Ch.384 (5) A school of equal or greater training that is approved by the corresponding agency in another state or accredited by an agency recognized by the United States Department of Education. (b) "Compensation" means the payment, loan, advance, donation, contribution, deposit, or gift of money or anything of value. (c) "Massage therapist," "bodyworker," "bodywork therapist," or "massage and bodywork therapist" means a person who is certified by the Massage Therapy Organization under subdivision (c) of Section 460 I and who administers massage for compensation. (d) "Massage practitioner," "bodywork practitioner," or "massage and bodywork practitioner" means a person who is certified by the Massage Therapy Organization under subdivision (b) of Section 460 I and who administers massage for compensation. (e) "Organization" means the Massage Therapy Organization created pursuant to this chapter, which shall be a nonprofit organization exempt from taxation under Section 50 I (c )(3) ofTitle 26 of the United States Code. The organization may commence activities as authorized by this section once it has submitted a request to the Internal Revenue Service seeking this exemption. (f) "Registered school" means a facility that meets minimum standards for training and curriculum in massage and related subjects and that either was recognized by the Bureau for Private Postsecondary and Vocational Education pursuant to Section 94931 of the Education Code prior to July 1,2007, and as of the date on which an applicant met the requirements of paragraph (2) of subdivision (b) or subparagraph (A) of paragraph (2) of subdivision (c) of Section 460 I, or is recognized by the Department of Consumer Affairs, by an institution accredited by the senior commission or the junior commission of the Western Association of Schools and Colleges as defined in paragraph (2) of subdivision (a) of Section 4600, by a college or university of the state higher education system as defined in Section 100850 of the Educatiol1 Code, or by a school of equal or greater training that is approved by the corresponding agency in another state. (g) For purposes of this chapter, the terms "massage" and "bodywork" shall have the same meaning. 4600.5. (a) A Massage Therapy Organization, as defined in subdivision (e) of Section 4600, shall be created and shall have the responsibilities and duties set forth in this chapter. The organization may take any reasonable actions to carry out the responsibilities and duties set forth in this chapter, including, but not limited to, hiring staff and entering into contracts. (b) (1) The organization shall be governed by a board of directors made up oftwo representatives selected by each professional society, association, or other entity, whose membership is comprised of massage therapists and that chooses to participate in the organization. To qualify, a professional society, association, or other entity shall have a dues-paying membership in California of at least 1 ,000 individuals for the last three years, and shall have bylaws that require its members to comply with a code of ethics. The board of directors shall also include each of the following persons: 90 [ I 11 I I I Ch.384 4- (A) One member selected by each statewide association of private postsecondary schools incorporated on or before January 1, 2010, whose member schools have together had at least 1,000 graduates in each of the previous three years from massage therapy programs meeting the approval standards set forth in subdivision (a) of Section 4600, except from those qualifying associations that choose not to exercise this right of selection. (B) One member selected by the League of California Cities, unless that entity chooses not to exercise this right of selection. (C) One member selected by the California State Association of Counties, unless that entity chooses not to exercise this right of selection. (D) One member selected by the Director of Consumer Affairs, unless that entity chooses not to exercise this right of selection. (E) One member appointed by the California Community College Chancellor's Office, unless that entity chooses not to exercise this right of selection. The person appointed, if any, shall not be part of any massage therapy certificate or degree program, The organization's bylaws shall establish a process for appointing other professional directors as determined by the board. (2) The initial board of directors shall establish the organization, initiate the request for tax-exempt status from the Internal Revenue Service, and solicit input from the massage community concerning the operations of the organization. The initial board of directors, in its discretion, may immediately undertake to issue the certificates authorized by this chapter after adopting the necessary bylaws or other rules, or may establish by adoption of bylaws the pennanent governing structure prior to issuing certificates. (c) The board of directors shall establish fees reasonably related to the cost of providing services and carrying out its ongoing responsibilities and duties. Initial and renewal fees shall be established by the board of directors annually, (d) The meetings of the organization shall be subject to the rules of the Bagley-Keene Open Meetings Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Goverrunent Code). , 4601. (a) The organization shall issue a certificate under this chapter to an applicant who satisfies the requirements of this chapter. (b) (1) In order to obtain certification as a massage practitioner, an applicant shall submit a written application and provide the organization with satisfactory evidence that he or she meets all of the following requirements: (A) The applicant is 18 years of age or older, (B) The applicant has sllccessfully completed, at a single approved school, curricula in massage and related subjects totaling a minimum of 250 hours that incorporates appropriate school assessment of student knowledge and skills. Included in the hours shall be instruction addressing anatomy and physiology, contraindications, health and hygiene, and business and ethics, with at least 100 hours of the required minimum 250 hours devoted to these curriculum areas, 90 -5-Ch.384 (C) All fees required by the organization have been paid. (2) New certificates shall not be issued pursuant to this subdivision after December 31,201 S. Certificates issued pursuant to this section or subdivision (a) or (c) of Section 4604 on or before December 31, 2015, shall, after December 31, 2015, be renewed without any additional educational requirements, provided that the certificate holder continues to be qualified pursuant to this chapter. (c) In order to obtain certification as a massage therapist, an applicant shall submit a written application and provide the organization with satisfactory evidence that he or she meets all of the following requirements: (1) The applicant is 18 years of age or older. (2) The applicant satisfies at least one of the following requirements: (A) He or she has successfully completed the curricula in massage and related subjects totaling a minimum of 500 hours. Of this 500 hours, a minimum of250 hours shall be from approved schools. The remaining 250 hours required may be secured either from approved or registered schools, or from continuing education providers approved by, or registered with, the organization or the Department of Consumer Affairs. After December 31, 2015, applicants may only satisfy the curricula in massage and related subjects from approved schools. (B) The applicant has passed a massage and bodywork competency assessment examination that meets generally recognized psychometric principles and standards, and that is approved by the board. The successful completion of this examination may have been accomplished before the date the organization is authorized by this chapter to begin issuing certificates. (3) All fees required by the organization have been paid. (d) The organization shall issue a certificate to an applicant who meets the other qualifications of this chapter and holds a current and valid registration, certification, or license from any other state whose licensure requirements meet or exceed those defined within this chapter. The organization shall have discretion to give credit for comparable academic work completed by an applicant in a program outside of California. ( e) An applicant applying for a massage therapist or massage practitioner certificate shall file with the organization a written application provided by the organization, showing to the satisfaction of the organization that he or she meets all of the requirements of this chapter. (f) Any certification issued under this chapter shall be subject to renewal every two years in a manner prescribed by the organization, and shall expire unless renewed in that manner. The organization may provide for the late renewal of a license. (g) (1) The organization shall have the responsibility to detennine that the school or schools from which an applicant has obtained the education required by this chapter meet the requirements of this chapter. If the organization has any reason to question whether or not the applicant received the education that is required by this chapter from the school or schools that the applicant is claiming, the organization shall investigate the facts to 90 Ch.384 -6- determine that the applicant received the required education prior to issuing a certificate, (2) For purposes of paragraph (1) and any otheq)rovision ofthis chapter for which the organization is authorized to receive factual information as a condition of taking any action, the organization shall have the authority to conduct oral interviews of the applicant and others or to make any investigation deemed necessary to establish that the information received is accurate and satisfies any criteria established by this chapter, 4601.2, No certificates shall be issued by the organization pursuant to this chapter prior to September 1, 2009, 4601.3, (a) Prior to issuing a certificate to the applicant or designating a custodian of records, the organization shall require the applicant or the custodian of records candidate to submit fingerprint images in a form consistent with the requirements of this section, The organization shall submit the fingerprint images and related information to the Department of Justice for the purpose of obtaining information as to the existence and nature of a record of state and federal level convictions and of state and federal level arrests for which the Department of Justice establishes that the applicant or candidate was released on bailor on his or her own recognizance pending triaL Requests for federal level criminal offender record infonnation received by the Department of Justice pursuant to this section shall be forwarded to the Federal Bureau of Investigation by the Department of Justice, The Department of Justice shall review the information returned from the Federal Bureau ofInvestigation, and shall compile and disseminate a fitness determination regarding the applicant or candidate to the organization, (b) The Department of Justice shall provide information to the organization pursuant to subdivision (p) of Section 11105 of the Penal Code. (c) The Department of Justice and the organization shall charge a fee sufficient to cover the cost of processing the request for state and federal level criminal offender record information. (d) The organization shall request subsequent arrest notification service from the Department of Justice, as provided under Section 11105.2 of the Penal Code, for all applicants for licensure or custodian of records candidates for whom fingerprint images and related information are sllbmitted to conduct a search for state and federal level criminal offender record information. (e) This section shall become operative September 1,2009, 4601.4. Organization directors, employees, or volunteer individuals may undergo the background investi gation process delineated in Section 4601,3, 4602. (a) The organization may discipline a certificate holder by any, or a combination, of the following methods: (1) Placing the certificate holder on probation. (2) Suspending the certificate and the rights conferred by this chapter on a certificate holder for a period not to exceed one year, (3) Revoking the certificate. 90 -7 Ch.384 (4) Suspending or staying the disciplinary order, or portions of it, with or without conditions. (5) Taking other action as the organization, as authorized by this chapter or its bylaws, deems proper. (b) The organization may issue an initial certificate on probation, with specific terms and conditions, to any applicant. (c) (1) Notwithstanding any other provision of law, if the organization receives notice that a certificate holder has been arrested and charges have been filed by the appropriate prosecuting agency against the certificate holder alleging a violation of subdivision (b) of Section 647 of the Penal Code or any other offense described in subdivision (h) of Section 4603, the organization shall take all of the following actions: (A) Immediately suspend, on an interim basis, the certificate of that certificate ho lder. (B) Notify the certificate holder within 10 days at the address last filed with the organization that the certificate has been suspended, and the reason for the suspension. (C) Notify any business within 10 days that the organization has in its records as employing the certificate holder that the certificate has been suspended. (2) Upon notice to the organization that the charges described in paragraph (1) have resulted in a conviction, the suspended certificate shall become subject to permanent revocation. The organization shall provide notice to the certificate holder within 10 days that it has evidence of a valid record of conviction and that the certificate will be revoked unless the certificate holder provides evidence within 15 days that the conviction is either invalid or that the information is otherwise erroneous. (3) Upon notice that the charges have resulted in an acquittal, or have otherwise been dismissed prior to conviction, the certificate shall be immediately reinstated and the certificate holder and any business that received notice pursuant to subparagraph (C) of paragraph (1) shall be notified of the reinstatement within 10 days. 4602.5. (a) Upon the request of any law enforcement agency or any other representative of a local government agency with responsibility for regulating, or administering a local ordinance relating to, massage or massage businesses, the organization shall provide information concerning a certificate holder, including, but not limited to, the current status of the certificate, any history of disciplinary actions taken against the certificate holder, the home and work addresses of the certificate holder, and any other information in the organization's possession that is necessary to verify facts relevant to administering the local ordinance. (b) The organization shall accept information provided by any law enforcement agency or any other representative of a local government agency with responsibility for regulating, or administering a local ordinance relating to, massage or massage businesses. The organization shall have the responsibility to review any information received and to take any actions authorized by this chapter that are warranted by that information. 90 Ch.384 -8 4603. It is a violation of this chapter for a certificate holder to commit, and the organization may deny an application for a certificate or discipline a certificate holder for, any of the following: (a) Unprofessional conduct, including, but not limited to, denial of licensure, revocation, suspension, restriction, or any other disciplinary action against a certificate holder by another state or territory of the United States, by any other government agency, or by another California health care professional licensing board. A certified copy of the decision, order, or judgment shall be conclusive evidence of these actions. (b) Procuring a certificate by fraud, misrepresentation, or mistake. (c) Violating or attempting to violate, directly or indirectly, or assisting in or abetting the violation of, or conspiring to violate, any provision or term of this chapter or any rule or bylaw adopted by the organization. (d) Conviction of any felony, or conviction of a misdemeanor that is substantially related to the qualifications or duties of a certificate holder, in which event the record of the conviction shall be conclusive evidence of the crime. (e) Impersonating an applicant or acting as a proxy for an applicant in any examination referred to under this chapter for the issuance of a certificate. (f) Impersonating a certified practitioner or therapist, or permitting or allowing an uncertified person to use a certificate. (g) Committing any fraudulent, dishonest, or corrupt act that is substantially related to the qualifications or duties of a certificate holder. (h) Committing any act punishable as a sexually related crime. 4603.1. (a) No certificate holder or certificate applicant may be disciplined or denied a certificate pursuant to Section 4603 except according to procedures satisfying the requirements of this section. A denial or discipline not in accord with this section or subdivision (c) of Section 4602 shall be void and without effect. (b) Any certificate applicant denial or certificate holder discipline shall be done in good faith and in a fair and reasonable manner. Any procedure that conforms to the requirements of subdivision (c) is fair and reasonable, but a court may also find other procedures to be fair and reasonable when the full circumstances of the certificate denial or certificate holder discipline are considered. (c) A procedure is fair and reasonable when the procedures in subdivision (c) of Section 4602 are followed, or if all of the following apply: (1) The provisions of the procedure have been set forth in the articles or bylaws, or copies of those provisions are sent mmually to all the members as required by the articles or bylaws. (2) It provides the giving of 15 days prior notice of the certificate denial . or certificate holder discipline and the reasons therefor. (3) It provides an opportunity for the certificate applicant or certificate holder to be heard, orally or in writing, not less than five days before the effective date of the certificate denial or certificate holder discipline by a 90 9 Ch.384 person or body authorized to decide that the proposed certificate denial or certificate holder discipline not take place. (d) Any notice required under this section may be given by any method reasonably calculated to provide actual notice. Any notice given by mail must be given by first-class or certified mail sent to the last address of the certificate applicant or certificate holder shown on the organization's records. (e) Any action challenging a certificate denial or certificate holder discipline, including any claim alleging defective notice, shall be commenced within one year after the date of the certificate denial or certificate holder discipline. Ifthe action is successful, the court may order any relief, including reinstatement, that it finds equitable under the circumstances. (1) This section governs only the procedures for certificate denial or certificate holder discipline and not the substantive grounds therefor. A certificate denial or certificate holder discipline based upon substantive grounds that violates contractual or other rights of the member or is otherwise unlawful is not made valid by compliance with this section. (g) A certificate applicant or certificate holder who is denied or disciplined shall be liable for any charges incurred, services or benefits actually rendered, dues, assessments, or fees incurred before the certificate denial or certificate holder discipline or arising from contract or otherwise. 4603.5. It shall be the responsibility of any certificate holder to notify the organization of his or her home address, as well as the address of any business establishment where he or she regularly works as a massage therapist or massage practitioner, whether as an employee or as an independent contractor. A certificate holder shall notify the organization within 30 days of changing either his or her home address or the address of the business establishment where he or she regularly works as a massage therapist or massage practitioner. 4604. (a) Notwithstanding Section 4601, the organization may grant a massage practitioner certificate to any person who applies on or before January 1, 2012, with one of the following: (1) A current valid massage permit or license from a California city, county, or city and county and documentation evidencing that the person has completed at least a 100-hour course in massage at a state-approved or registered school, or out-of-state school recognized by the organization as providing comparable education, has been practicing for at least three years, and has provided at least 1,000 hours of massage to members of the public for compensation. (2) Documentation evidencing that the person has completed at least a 100-hour course in massage at a state-approved or registered school, or out-of-state school recognized by the organization as providing comparable education, has been practicing for at least three years, and has provided at least 1,750 hours of massage to members of the public for compensation. For purposes of this subdivision, evidence of practice shall include either of the following: (A) A W-2 form or employer's affidavit containing the dates of the applicant's employment 90 Ch.384 -10- (B) Tax returns indicating self-employment as a massage practitioner or massage therapist or any other title that may demonstrate experience in the field of massage. (3) Documentation evidencing that the person holds a current valid certificate of authorization as an instructor at an approved massage school, or holds the position of a massage instructor at a school accredited by an agency recognized by the United States Department of Education, or colleges and universities of the state higher education system, as defined in Section 100850 of the Education Code. (b) (1) After reviewing the information submitted under subdivision (a), the organization may require additional information necessary to enable it to determine whether to issue a certificate. (2) If an applicant under paragraph (1) of subdivision (a) or paragraph (1) of subdivision (c) has not complied with Section 4601.3, or its equivalent, when obtaining a license or permit from the city, county, or city and county, the organization shall require the applicant to comply with Section 4601.3 prior to issuing a certificate pursuant to this section. (c) (1) A person applying for a massage practitioner certificate on or before January 1,2012, who meets the educational requirements of either paragraph (1) or (2) of subdivision (a), but who has not completed the required number of practice hours prior to submitting an application pursuant to this section, may apply for a conditional certificate. (2) An applicant for a conditional certificate shall, within five years of being issued the conditional certificate, be required to complete at least 30 hours of additional education per year from schools or courses described in paragraph (5) until he or she has completed a total of at least 250 hours of education, which may include massage education hours previously completed in a massage course described in either paragraph (1) or (2) of subdivision (a). (3) Upon successful completion of the requirements ofthis subdivision, the organization shall issue a certificate to the person that is not conditional. (4) The organization shall immediately revoke the conditional certificate issued to any person pursuant to this subdivision if the time period specified in paragraph (2) expires without proof of completion of the requirements having been filed with the organization. (5) Any additional education required by this section may be completed through courses provided by any of the following: (A) An approved school. (B) A registered school. (C) A provider approved by, or registered with, the organization or the Department of Consumer Affairs. (D) A provider that establishes to the satisfaction of the organization that its course or courses are appropriate educational programs for this purpose. (d) Nothing in this section shall preclude the organization from exercising any power or authority conferred by this chapter with respect to a conditional certificate holder. 90 I -11 Ch.384 4605. It is an unfair business practice for any person to state or advertise or put out any sign or card or other device, or to represent to the public through any print or electronic media, that he or she is certified, registered, or licensed by a governmental agency as a massage therapist or massage practitioner. 4606. It is an unfair business practice for any person to hold oneself out or use the title of "certified massage therapist" or "certified massage practitioner" or any other term, such as "licensed," "registered," or "CMT;' that implies or suggests that the person is certified as a massage therapist or practitioner without meeting the requirements of Section 4601 or 4604. 4607. The superior court in and for the county in which any person acts as a massage practitioner or massage therapist in violation ofthe provisions of this chapter, may, upon a petition by any person, issue an injunction or other appropriate order restraining the conduct. The proceedings under this paragraph shall be governed by Chapter 3 (commencing with Section 525) of title 7 of Part 2 of the Code of Civil Procedure. 4608. Nothing in this chapter is intended to limit or prohibit a person who obtains a certification pursuant to this chapter from providing services pursuant to, and in compliance with, Sections 2053.5 and 2053.6. 4612. (a) (1) The holder of a certificate issued pursuant to this chapter shall have the right to practice massage, consistent with this chapter and the qualifications established by his or her certification, in any city, county, or city and county in this state and shall not be required to obtain any other license, pyrmit, or other authorization, except as provided in this section, to engage in that practice. (2) Notwithstanding any other provision of law, a city, county, or city and county shall not enact an ordinance that requires a license, permit, or other authorization to practice massage by an individual who is certified pursuant to this chapter and 'who is practicing consistent with the qualifications established by his or her certification. No provision of any ordinance enacted by a city, county, or city and county that is in effect before the effective date of this chapter, and that requires a license, permit, or other authorization to practice massage, may be enforced against an individual who is certified pursuant to this chapter. (3) Except as provided in subdivision (b), nothing in this section shall be interpreted to prevent a city, county, or city and county from adopting or enforcing any local ordinance governing zoning, business licensing, and reasonable health and safety requirements for massage establishments or businesses. Subdivision (b) shall not apply to any massage establishment or business that employs or uses persons to provide massage services who are not certified pursuant to this chapter. (b) (1) This subdivision shall apply only to massage establishments or businesses that are sole proprietorships, where the sole proprietor is certified pursuant to this chapter, and to massage establishments or businesses that employ or use only persons ce11ified pursuant to this chapter to provide massage services. For purposes ofthis subdivision, a sole proprietorship is 90 Ch.384 -12 a business where the owner is the only person employed by that business to provide massage services. (2) (A) Any massage establishment or business described in paragraph (1) shall maintain on its premises evidence for review by local authorities that demonstrates that all persons providing massage services are certified. (B) Nothing in this section shall preclude a city, county, or city and county from induding in a local ordinance a provision that requires a business described in paragraph (1) to file copies or provide other evidence of the certificates held by the persons who are providing massage services at the business. (3) A city, county, or city and county may charge a massage business or establishment a business licensing fee sufficient to cover the costs of the business licensing activities established by a local ordinance described in this section. (4) Nothing in this section shall prohibit a city, county, or city and county from adopting land use and zoning requirements applicable to massage establishments or businesses, provided that these requirements shall be no different than the requirements that are uniformly applied to other professional or personal services businesses. (5) Local building code or physical facility requirements applicable to massage establishments or businesses shall not require additional restroom, shower, or other facilities that are not uniformly applicable to other professional or personal service businesses, nor shall building or facility requirements be adopted that (A) require unlocked doors when there is no staff available to assure security for clients and massage staff who are behind closed doors, or (B) require windows that provide a view into massage rooms that interfere with the privacy of clients of the massage business. (6) A city, county, or city and county may adopt reasonable health and safety requirements with respect to massage establishments or businesses, including, but not limited to, requirements for cleanliness of massage rooms, towels and linens, and reasonable attire and personal hygiene requirements for persons providing massage services, provided that nothing in this paragraph shall be interpreted to authorize adoption of local ordinances that impose additional qualifications, such as medical examinations, background checks, or other criteria, upon any person certified pursuant to this chapter. (7) Nothing in this section shall preclude a city, county, or city and county from doing any of the following: (A) Requiring an applicant for a business license to operate a massage business or establishment to fill out an application that requests the applicant to provide relevant information. (B) Making reasonable investigations into the information so provided. (C) Denying or restricting a business license ifthe applicant has provided materially false information. (c) An owner or operator of a massage business or establishment subject to subdivision (b) shall be responsible for the conduct of all employees or independent contractors working on the premises of the business. Nothing in this section shall preclude a local ordinance from authorizing suspension, 90 13 Cb.384 revocation, or other restriction of a license or permit issued to a massage establishment or business if violations of this chapter, or of the local ordinance, occur on the business premises. (d) Nothing in this section shall preclude a city, county, or city and county from adopting a local ordinance that is applicable to massage businesses or establishments described in paragraph (1) of subdivision (b) and that does either of the following: (1) Provides that duly authorized officials of the city, county, or city and county have the right to conduct reasonable inspections, during regular business hours, to ensure compliance with this chapter, the local ordinance, or other applicable fire and health and safety requirements. (2) Requires an owner or operator to notify the city, county, or city and county of any intention to rename, change. management, or convey the business to another person. 4613. (a) Nothing in this chapter shall restrict or limit in any way the authority of a city, county, or city and county to adopt a local ordinance governing any person who is not certified pursuant to this chapter. (b) Nothing in this chapter is intended to affect the practice rights of any person licensed by the state to practice or perform any functions or services pursuant to that license. 4615. This chapter shall be subject to the review required by Division 1.2 (commencing with Section 473). 4620. This chapter shall remain in effect only until January 1,2016, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2016, deletes or extends that date. o 90 I Attachment D Ii DIVISON 2 OF THE BUSINESS AND PROFESSIONS CODE. CHAPTER 10.5. SECTION 460Q GUIDE DEVELOPED BY THE CALIFORNIA MASSAGE THERAPY COUNCIL 4600 ....................................................................................... Meanings of Terms 4600.S ............................................... Massage Therapy Organization (CAMTC) 4601 ............................................................... .Issuance of Massage Certificates 4601.2.., ................................................................................. September 1, 2009 4601.3 .................................................................................. OOJ and FBI Reports 4602 .................................................... CAMTC Disciplinary & Denial Authority 4602.5 .. " ................................ CAMTC & Municipalities Information Exchange 4603 ................................................ Causes for Denials or Disciplinary Actions 4603.5 ............................................................... Change of Address Notification 4604 ......................................................... Grandfathering Prior to January 1, 2012 4605 .............................................................................. Unfair Business Practice 4606 .................................................................................. · .... CMT and CMPTitle 4607 ....................................................... " ................................... Court Restraint 4608 ..................................................................... Freedom to Provide Services 4612 (a) (1 & 2) ......................................... Exemption from Local Ordinances 4612 (a) (3} ..................................................................... Municipalities' Rights 4612 (b) (1) ............................................................ Establishment Exemptions 4612 (2) (A) .................................................. Proof of Certificates on Premises 4612 (2) (B) .................................................. Register with Local Municipality 4612 (3) ............................................................................ Business License Fee 4612 (4) ............................................................ Uniform Land Use and Zoning 4612 (S) ........................................................................ Uniform Building Code 4612 (6) ....................................... Reasonable Health & Safety Requirements 4612 (7) (A, B, & CJ ................... Municipal Business License & Investigation 4612 (7) (c) ...................................... Owner Responsible for Conduct of Staff 4612 (7) (d) (1) .................................... : ............ Municipality Right to Inspect 4612 (7) (d) (2) ................... Owner Notification to Municipality of Changes 4613 ..................................... Municipal Governance of Non-Certified Person 4615 ....................................................... 11 .............. Chapter Subj ect to Review 4620 ............................................................................ Sunset January 1, 2016 California Massage Therapy Council \ cg,mt~..@aJ.1.'llQ.:~:)Up~.us I (916) 669-5336\ www.camtc.org REGULATION OF MASSAGE BUSINESSES UNDER B&P SECTION 4600 (SB 731) Cities still have some authority over massage businesses even if all of the therapists are certified -it gives the cities information about the true owners, provides for business licensing, and gives the cities a means of confirming that the therapists are indeed certified .. On the zoning and land use side, it puts massage businesses on par with other businesses that provide personal and professional services. The key lies in Section 4612. Section 4612(a) provides that local authorities can't require a license or permit to practice massage by an individual already certified by the CAMTC. A city or county can still adopt a local ordinance governing zoning, business licensing, and reasonable health and safety requirements for massage establishments and massage businesses. But, Section 4612 provides some important rules of the road when a business has taken the time to hire only therapists certified by the CAMTC. The rules go both ways -the establishment must do some things and the local authorities must give on some things. So, here it is. If an establishment or business employs ONLY persons certified by the CAMTC, the following applies: • Section 4612 (b) 2 (A) The establishmentlbusiness must maintain on its premises, and available to local authorities, evidence demonstrating that all persons providing massage are certified by the CAMTC. • Section 4612 (b) 2 (B) The city or county can require the establishmentlbusiness to file copies or other evidence of certificates held by persons providing massage. • Section 4612(b)3 The city or county can charge an establishmentlbusiness a business licensing fee to cover the costs of business licensing activities described here. Section 4612(b)4 The city or county can have land use and zoning requirements applicable to massage establishments as long as the requirements are no different than requirements that are uniformly applicable to other professional or personal service businesses. .. Section 4612(b)5 Local building code or facility requirements applicable to establishments can't require additional restrooms, shower, or other facilities that aren't uniformly applicable to other professional or personal service businesses -nor can the requirements be such that there are unlocked doors when no staff is available to assure security for clients and employees or require windows with a view into massage rooms. Page 10f2 Section 4612(b)6 The city or county can adopt reasonable health and safety requirements, including requirements for cleanliness of rooms, towels and linens, and reasonable attire and personal hygiene requirements for therapists (but can't interpret this to authorize medical exams, background checks or other criteria on CAMTC .. certified therapists) .. • Section 4612(b) 7 (A-C) The city or county CAN still require an application for a business license to operate a massage business or massage establishment and can require completion of an application requesting relevant information.. The city or county can make reasonable investigation into the information so provided and deny or restrict a business license if the applicant provided materially false information. • Section 4612 (c) provides that a massage establishment owner or operator is responsible for the conduct of all employees or independent contractors on its premises. A local ordinance can authorize suspension, revocation or other restriction of a business license issued to a massage business/establishment if a violation of the state law or local ordinance occurs on the premises. San Rafael is requiring a "certificate of exemption" for massage businesses in which all therapists are CAMTC certified. If illicit activities occur on the premises, the· owner, who is held responsible, can lose the certificate. Once the certificate is revoked, the business is subject to all establishment regulations required of non-exempt massage businesses. This makes it easier to close the business than red light abatement. Cotati is proposing a "zoning waiver" which will provide the same type of protection for the city. Pacifica requires all CAMTC certified massage therapists to register with the city .. •. CMT's and CMP' s are required to notify the CAMTC within 30 days of any change of work or home status .. Once the information is received, notice goes out to the registered city contact. Page 2of2 ., . .~ CALIFORN IA ~~ tv-\r\.sS.I\G!: THERAPY COUNCIL MEETS STANDARDS CURRENTLY ESTABLISHED BY CITIES AND COUNTIES AND ALSO BENEFITS CITIES AND COUNTIES: I. Meets Standards Established by Cities and Counties: • • • • • • • • Applicants for state certification undergo criminal background checks including fingerprints. (Section 4601 .3(a». CAMTC is mandated to request subsequent arrest notification service from the Department of Justice for all applicants for licensure for whom fmgerprints are submitted. (Section 4601.3(d». CAMTC is authorized to investigate the education of applicants, including their certificates of completion (transcripts), and to reject those it determines to be fraudulent. CAMTC may also request additional information regarding an applicant's education if a transcript from a particular school is not deemed sufficient proof of adequate education.. (Section 4601(g)(1) and (2». CAMTC is authorized to discipline certificate holders through probation, suspension, revocation, or other means it deems proper. (Section 4601(a». CAMTC is required to permanently revoke the certificate of anyone violating subdivision (b) of Section 647 of the Penal Code of any offense described in subdivision (h) of Section 4603. The law requires the CAMTC to immediately suspend the certificate, notify the certificate holder and any business employing the certificate holder of such suspension. Upon notice that the charges have resulted in a conviction, the CAMTC has authority to revoke the certificate. (Section 4602(c». CAMTC is authorized to deny or revoke certificates for unprofessional conduct, including, but not limited to, denial of licensure, revocation, suspension, restriction, or any other disciplinary action against a certificate holder by another state or territory of the United States, by any other government agency, or by another California health care professional licensing board. A certified copy of the decision, order, or judgment shall be conclusive evidence of these actions. (Section 4603(a». CAMTC may also deny or revoke a certificate for the following: procuring a certificate by fraud, misrepresentation, or mistake; violating or attempting to violate, directly or indirectly, or assisting in or abetting the violation of, or conspiring to violate, any provision or term of the law or any rule or bylaw adopted by the organization; conviction of any felony, or conviction of a misdemeanor that is substantially related to the qualifications or duties of a certificate holder, in which event the record of the conviction shall be conclusive evidence of the crime; impersonating an applicant or acting as a proxy for an applicant in any examination referred to under the law for the issuance of a certificate; impersonating a certified pmctitioner or therapist, or permitting or allowing an uncertified person to use a certificate; committing any fraudulent, dishonest, or COlTIlpt act that is substantially related to the qualifications or duties of a certificate holder; committing any act punishable as a sexually related crime. (Section 4603(a)-(h)). It is an unfair business practice to state that one is certified, registered or licensed by a governmental agency (the CAMTC is a private not-for-profit with legislative oversight) as a massage therapist or practitioner. (Section 4605). It is an unfair business practice for any person to hold oneself out or use the title of "certified massage therapist" or "certified massage practitioner" or any other term, such as "licensed," "registered," or "CMT," that implies or suggests that the person is certified as a massage therapist or practitioner without meeting the requirements of the law. (Section 4606). Page 1 of2 II. Allows Cities and Counties to Know Who is Practicing in Their Jurisdiction: • • • Section 4600 gives CAMTC broad authority to share information with local authorities. The CAMTC is authorized to provide to local authorities information concerning a certificate holder, including but not limited to, the current status of the certificate holder, address of the certificate holder (home and work), history of disciplinary actions against the certificate holder (including revocation), and any other information necessary to verify facts relevant to administering a local ordinance (Section 4602.5(a». CAMTC must also accept information provided by local authorities, and has a responsibility to review information received and take action warranted by that information. (Section 4602.5(b». CAMTC is required to request subsequent arrest notification service from the Department of Justice for all applicants for licensure. (Section 4601.3(d». CAMTC can share this information with local authorities, as stated above. In. Important Authority Retained by Cities and Counties under SECTION 4600 • Cities and counties retain authority over any person not certified pursuant to Section 460'0. (Section 4613(a». • • • • • • • • Section 4600 specifies that the superior court in and for the county in which any person acts as a massage practitioner or massage therapist in violation ofthe provisions of the law, may, upon a petition by any person, issue an injunction or other appropriate order restraining the conduct. The proceedings under this paragraph . shall be governed by Chapter 3 (commencing with Section 525) ofTitle 7 of Part 2 of the Code of Civil Procedure. (Section 4607). A city or county may adopt reasonable health and safety requirements with respect to massage establishments or businesses, including, but not limited to: (Section 4612(b)(6» . .( Cleanliness of rooms .( Cleanliness of towels and linens ./ Reasonable attire and personal hygiene requirements A city or cOlmty may require an applicant for a business license to operate a massage establishment to fill out an application providing relevant infonnation and make reasonable investigation into the information provided. (Section 4612(b )(7)). Local authorities can deny or restrict a business license if the applicant has provided materially false information (Section 4612(b )(7). The owner/operator of a massage establishment is responsible for the conduct of all employees or independent contractors working on the premises. Local authorities can still suspend, revoke or otherwise restrict the license issued to a massage establishment for violations of Section 4600 or local ordinances. (Section 4612(c». Local authorities may have and enforce an ordinance that is applicable to massage businesses or establishments that provides duly authorized officials of the city or county the right to conduct reasonable inspections during regular business hours, to ensure compliance with the law, the local ordinance, or other applicable fire and health and safety requirements. Such ordinances may require an owner or operator to notify the city or county of any intention to rename, change management, or convey the business to another person. (Section 4612( d». Local authorities may require a massage establishment to maintain on its premises for review evidence demonstrating that all persons providing massage services are certified. A local authority may require a business to file copies or provide other evidence of the certificates held by persons providing massage services at the business. Section 4612(b)(2)(A)-(B). Cities and counties may adopt land use and zoning requirements applicable to massage establishments provided that the requirements are no different than those uniformly applied to other professional or personal services businesses. (Section 4612(b)«4». Page 2 of2 CAMTC Review Process Professional Standards Division Application Sent to P5D for Review P5D Reviews and Makes a Factual Finding Evidence Standard is No CALIFORNIA. MASSAGE T.HERAPY COUNCIL www.camtc.org More Probable rhan Not >-----------------., Yes Memo to Coun sel Drafted by P5D Proposed Denial Letmr Sent by Counsel to Applicant Hearing Requested (0131 or Written) P5D Holds Denial Hearing Proposed Denial is Upheld Final Letter of Denial is 5ent by Counsel Applicant May Reapply After One Year No No No Denial Automatically Effective Notify 5taff of Denial Return to Staff for Processing California Massage Therapy Council lOne Ca-eitol Mall, Suite 320 I Sacramento, CA 95814 I 916.669.53361 www.camtc.org tet < •• \ RE~{"'fll 11 n c ~ A r' t\"'f",' ]::(""')R CC It-A 'I' CE'Rl-IF~ CA'l"ION ~~ f\.LfvLtJ J 1 ._, , ;, .... JVl , .. ,11 • 1 _,_ .,' Starting January 31,2011, applicants seeking a Conditional CMP (CCMP) certificate with 100- 249 hours of massage education completed after March 15, 2010, must submit a transcript from an approved school whose 100 .. 249 hour entry-level program was specifically approved by BPPE or BPPVE. Please note that no applications for CCMP certification will be accepted after December 31, 2011. Starting January 1, 2012, all applicants will need a minimum of 250 hours of massage education at an approved school to be considered for CAMTC certification. In order to maintain your Conditional Certification as a Massage Practitioner (CCMP), you are required to provide evidence of a minimum of 30 hours of continuing massage education each year, until your total massage education totals 250 hours. Once you have completed a minimum of 250 hours of massage education, you must apply for an upgrade to CMP. You may apply for an upgrade at the time you reach 250 hours or at the time of your next renewal. If you are unsure where to obtain your continuing education, visit the National Certification Board for Therapeutic Massage & Bodywork (www.ncbtmb.org/ceproviders.php) or Bureau for Private Postsecondary Education (www.bppe.ca.gov) for a list of providers/schools. Please note: not all transcripts will serve as sole proof of education, so please check our website regularly for a list of schools where additional proof of education, beyond a transcript, will be requested. !. ~ I Attachment E , . .. ,. BILL NUMBER: AB619 BILL TEXT CHAPTER 162 CHAPTERED FILED WITH SECRETARY OF STATE AUGUST 3, 2011 APPROVED BY GOVERNOR AUGUST 3, 2011 PASSED THE SENATE JULY 11, 2011 PASSED THE ASSEMBLY JULY 14, 2011 AMENDED IN SENATE JULY 1, 2011 AMENDED IN SENATE JUNE 7, 2011 AMENDED IN SENATE JUNE 2, 2011 AMENDED IN ASSEMBLY APRIL 25, 2011 AMENDED IN ASSEMBLY APRIL 13, 2011 AMENDED IN ASSEMBLY MARCH 31, 2011 INTRODUCED BY Assembly Member Halderman FEBRUARY 16, 2011 An act to amend Sections 4600, 4600.5, 4601, 4601.3, 4601.4, 4602, 4602.5, 4603, 4603.1, 4603.5, 4604, 4612, and 4615 of, and to add Sections 4603.7 and 4616 to, the Business and Professions Code, relating to massage therapy. LEGISLATIVE COUNSEL'S DIGEST AB 619, Halderman. Massage therapy. (1) Existing law, until January 1, 2015, provides for the voluntary certification of massage practitioners and massage therapists by a nonprofit Massage Therapy Organization, as defined. Existing law requires the initial board of directors to, among other things, establish the organization. This bill would specify that the Massage Therapy Organization is to be known as the California Massage Therapy Council, as defined. (2) Existing law requires applicants for initial certification as massage practitioners and massage therapists to pay a specified fee and meet certain educational requirements. This bill would require a certificate holder to include certain identifying information in any advertising, and to display his or her certificate at his or her place of business. (3) Existing law prohibits the holder of a certificate or a certificate applicant from being disciplined or denied a certificate unless certain procedural requirements are met. Existing law requires actiqns challenging a denial or discipline to be commenced within a year after the date of the denial or discipline. Under existing law, applicants and certificate holders are liable for charges incurred before the certificate denial or certificate holder discipline, or other specified charges. This bill would delete that liability requirement and would require the council to be sued only in the county of its principal office. (4) Existing law prohibits a city, county, or city and county from enacting an ordinance, or enforcing an existing ordinance, that requires a license, permit, or other auth<;>rization to practice massage by an individual who is certified pursuant to existing law, as specified. This bill would instead prohibit those local governments from Page 1 of12 h«p:llwww.leginfo.ca.gov/pubI11-12Ibill/asmlab_0601-0650/ab_619 _bill_20110803_cha... 10/28/2011 AB 619 Assembly Bill-CHAPTERED . enacting an ordinance or enforcing an existing ordinance that requires a license, permit, or other authorization to provide massage for compensation against an individual certified under existing state law or against a massage business or massage establishment that employs or uses only persons who are so certified. Existing law authorizes a city, county, or city and county to charge a massage business or massage establishment a business licensing fee sufficient to cover the costs of the licensing activities, as specified. This bill would require that the fee be no different than the fee that is uniformly applied to all other individuals and businesses providing professional services, as defined and specified. Existing law authorizes a city, county, or city and county to require a background check of any person certified to practice massage. This bill would authorize such a background check of an owner of 5% or more of a massage business or massage establishment, as specified. The bill would make various conforming changes, including with regard to the failure of an owner or operator of a massage business or establishment to comply with the provisions that apply to the practice of massage therapy. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 4600"of the Business and Professions Code is amended to read: 4600. As used in this chapter, the following terms shall have the following meanings: (a) "Approved school" or "approved massage school" means a school approved by the council that meets minimum standards for training and curriculum in massage and related subjects and that meets any of the following requirements: (1) Is approved by the Bureau for Private Postsecondary Education. (2) Is approved by the Department of Consumer Affairs. (3) Is an institution accredited by the Accrediting Commission for Senior Colleges and Universities or the Accrediting Commission for Community and Junior Colleges of the Western Association of Schools and Colleges and that is one of the following: (A) A public institution. (B) An institution incorporated and lawfully operating as a nonprofit public benefit corporation pursuant to Part 2 (commencing with Section 5110) of Division 2 of Title 1 of the Corporations Code, and that is not managed by any entity for profit. (C) A for-profit institution. (D) An institution that does not meet all of the criteria in subparagraph (B) that is incorporated and lawfully operating as a nonprofit public benefit corporation pursuant to Part 2 (commencing with Section 5110) of Division 2 of Title 1 of the Corporations Code, that has been in continuous operation since April 15, 1997, and that is not managed by any entity for profit. (4) Is a college or university of the state higher education system, as defined in Section 100850 of the Education Code. (5) Is a school of equal or greater training that is recognized by the corresponding agency in another state or accredited by an agency recognized by the United States Department of Education. (b) "Compensation" means the payment, loan, advance, donation, contribution, deposit, or gift of money or anything of value. Page 2ofl2 http://www.leginfo.ca.gov/pub/11-12/bilVasm/ab_0601-0650/ab_ 619 _ bill_ 20110803 _cha... 10128/2011 AB 619 Assembly Bill -CHAPTERED (cl "Massage therapist," "bodyworker," "bodywork therapist," or "massage and bodywork therapist" means a person who is certified by the California Massage Therapy Council under subdivision (cl of Section 4601 and who administers massage for compensation. (d) "Massage practitioner," "bodywork practitioner," or "massage and bodywork practitioner" means a person who is certified by the California Massage Therapy Council under subdivision (b) of Section 4601 and who administers massage for compensation. (e) "Council" means the California Massage Therapy Council created pursuant to this chapter, which shall be a nonprofit organization exempt from taxation under Section 501(c) (3) of Title 26 of the United States Code. The council may commence activities as authorized by this section once it has submitted a request to the Internal Revenue Service seeking this exemption. Whenever the term "organization" is used in this chapter, it shall mean the council, except where the context indicates otherwise. (f) "Registered school" means a school approved by the council that meets minimum standards for training and curriculum in massage and related subjects and that either is approved by the Bureau for Private Postsecondary Education or the Department of Consumer Affairs, or is an 'institution accredited by the senior commission or the junior commission of the Western Association of Schools and Colleges as defined in paragraph (3) of subdivision (a), is a college or university of the state higher education system as defined in Section 100850 of the Education Code, or is a school of equal or greater training that is approved by the corresponding agency in another state. (g) For purposes of this chapter, the terms "massage" and "bodywork" shall have the same meaning. SEC. 2. Section 4600.5 of the Business and Professions Code is amended to read: 4600.5. (a) The California Massage Therapy Council, as defined in subdivision (e) of Section 4600, shall be created and shall have the responsibilities and duties set forth in this chapter. The council may take any reasonable actions to carry out the responsibilities and duties set forth in this chapter, including, but not limited to, hiring staff and entering into contracts. (bl (1) The council shall be governed by a board of directors made up of two representatives selected by each professional society, association, or other entity, whose membership is comprised of massage therapists and that chooses to participate in the council. To qualify, a professional society, association, or other entity shall have a dues-paying membership in California of at least 1,000 individuals for the last three years, and shall have bylaws that require its members to comply with a code of ethics. The board of directors shall also include each of the following persons: (A) One member selected by each statewide association of private postsecondary schools incorporated on or before January 1, 2010, whose member schools have together had at least 1,000 graduates in each of the previous three years from massage therapy programs meeting the approval standards set forth in subdivision (a) of Section 4600, except from those qualifying associations that choose not to exercise this right of selection. (B) One member selected by the League of California Cities, unless that entity chooses not to exercise this right of selection. (ClOne member selected by the California State Association of Counties, unless that entity chooses not to exercise this right of selection. (D) One member selected by the Director of Consumer Affairs, unless that entity chooses not to exercise this right of selection. Page 3 of12 http://www.leginfo.ca.gov/pubI11-12lbilVasmiab _060 1-0650/ab _ 619 _ bill_ 20110803_ cha... 10/28/2011 I 1 i [I Ii AB 619 Assembly Bill -CHAPTERED (E) One member appointed by the Office of the Chancellor of the California Community Colleges, unless that entity chooses not to exercise this right of selection. The person appointed, if any, shall not be part of any massage therapy certificate or degree program. The council's bylaws shall establish a process for appointing other professional directors as determined by the board. (2) The initial board of directors shall establish the council, initiate the request for tax-exempt status from the Internal Revenue Service, and solicit input from the massage community concerning the operations of the council. The initial board of directors, in its discretion, may immediately undertake to issue the certificates authorized by this chapter after adopting the necessary bylaws or other rules, or may establish by adoption of bylaws the permanent governing structure prior to issuing certificates. (c) The board of directors shall establish fees reasonably related to the cost of providing services and carrying out its ongoing responsibilities and duties. Initial and renewal fees shall be established by the board of directors annually. (dl The meetings of the council shall be subject to the rules of the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code). SEC. 3. Section 4601 of the Business and Professions Code is amended to read: 4601. (a) The council shall issue a certificate under this chapter to an applicant who satisfies the requirements of this chapter. (b) (1) In order to obtain certification as a massage practitioner, an applicant shall submit a written application and provide the council with satisfactory evidence that he or she meets all of the following requirements: (A) The applicant is 18 years of age or older. (B) The applicant has successfully completed, at a single approved school, curricula in massage and related subjects totaling a minimum of 250 hours that incorporates appropriate school assessment of student knowledge and skills. Included in the hours shall be instruction addressing anatomy and physiology, contraindications, health and hygiene, and business and ethics, with at least 100 hours of the required minimum 250 hours devoted to these curriculum areas. (C) All fees required by the council have been paid. (2) New certificates shall not be issued pursuant to this subdivision after December 31, 2015. Certificates issued pursuant to this section or subdivision (a) or (c) of Section 4604 on or before December 31, 2015, shall, after December 31, 201 be renewed without any additional educational requirements, provided that the certificate holder continues to be qualified pursuant to this chapter. (c) In order to obtain certification as a massage therapist, an applicant shall submit a written application and provide the council with satisfactory evidence that he or she meets all of the following requirements: (1) The applicant is 18 years of age or older. (2) The applicant satisfies at least one of the following requirements: (A) He or she has successfully completed the curricula in massage and related subjects totaling a minimum of 500 hours. Of this 500 hours, a minimum of 250 hours shall be from approved schools. The remaining 250 hours required may be secured either from approved or registered schools, or from continuing education providers approved by, or registered with, the councilor the Department of Consumer Page4of12 http://www.leginfo.ca.gov/pub/11-12Ibilllasmlab _0601-0650/ab_619 _bilt20110803 _cha... 10/28/201 ~ AB 619 Assembly Bill -CHAPTERED Affairs. After December 31, 2015, applicants may only satisfy the curricula in massage and related subjects from approved schools. (B) The applicant has passed a massage and bodywork competency assessment examination that meets generally recognized psychometric principles and standards, and that is approved by the board. The successful completion of this examination may have been accomplished before the date the council is authorized by this chapter to begin issuing certificates. (3) All fees required by the council have been paid. (d) The council shall issue a certificate to an applicant who meets the other qualifications of this chapter and holds a current and valid registration, certification, or license from any other state whose licensure requirements meet or exceed those defined within this chapter. The council shall have discretion to give credit for comparable academic work completed by an applicant in a program outside of California. ) An applicant applying for a massage therapist certificate shall file with the council a written application provided by the council, showing to the satisfaction of the council that he or she meets all of the requirements of this chapter. (f) Any certification issued under this chapter shall be subject to renewal every two years in a manner prescribed by the council, and shall expire unless renewed in that manner. The council may provide for the late renewal of a license. (g) (1) The council shall have the responsibility to determine that the school or schools from which an applicant has obtained the education required by this chapter meet the requirements of this chapter. If the council has any reason to question whether or not the applicant received the education that is required by this chapter from the school or schools that the applicant is claiming, the council shall investigate the facts to determine that the applicant received the required education prior to issuing a certificate. (2) For purposes of paragraph (1) and any other provision of this chapter for which the council is authorized to receive factual information as a condition of taking any action, the council shall have the authority to conduct oral interviews of the applicant and others or to make any investigation deemed necessary to establish that the information received is accurate and satisfies any criteria established by this chapter. SEC. 4. Section 4601.3 of the Business and Professions Code is amended to read: 4601.3. (a) Prior to issuing a certificate to the applicant or designating a custodian of records, the council shall require the applicant or the custodian of records candidate to submit fingerprint images in a form consistent with the requirements of this section. The council shall submit the fingerprint images and related information to the Department of Justice for the purpose of obtaining information as to the existence and nature of a record of state and federal level convictions and of state and federal level arrests for which the Department of Justice establishes that the applicant or candidate was released on bailor on his or her own recognizance pending trial. Requests for federal level criminal offender record information received by the Department of Justice pursuant to this section shall be forwarded to the Federal Bureau of Investigation by the Department of Justice. The Department of Justice shall review the information returned from the Federal Bureau of Investigation, and shall compile and disseminate a fitness determination regarding the applicant or candidate to the council. (b) The Department of Justice shall provide information to the council pursuant to subdivision (p) of Section 11105 of the Penal Page 5 of12 http://www.leginfo.ca.gov/pub/11-121hill/asm/ab_0601-0650/ab_619 _bill_20110803 _cha... 10/28/2011 AB 619 Assembly Bill -CHAPTERED Code. (c) The Department of Justice and the council shall charge a fee sufficient to cover the cost of processing the request for state and federal level criminal offender record information. (d) The council shall request subsequent arrest notification service from the Department of Justice, as provided under Section 11105.2 of the Penal Code, for all applicants for licensure or custodian of records candidates for whom fingerprint images and related information are submitted to conduct a search for state and federal level criminal offender record information. (e) This section shall become operative September 1, 2009. SEC. 5. Section 4601.4 of the Business and Professions Code is amended to read: 4601.4. Council directors, employees, or volunteer individuals may undergo the background investigation process delineated in Section 4601.3. SEC. 6. Section 4602 of the Business and Professions Code is amended to read: 4602. (a) The council may discipline a certificate holder by any, or a combination, of the following methods: (1) Placing the certificate holder on probation. (2) Suspending the certificate and the rights conferred by this chapter on a certificate holder for a period not to exceed one year. (3) Revoking the certificate. (4) Suspending or staying the disciplinary order, or portions of it, with or without conditions. (5) Taking other action as the council, as authorized by this chapter or its bylaws, deems proper. (b) The council may issue an initial certificate on probation, with specific terms and conditions, to any applicant. (c) (1) Notwithstanding any other provision of law, if the council receives notice that a certificate holder has been arrested and charges have been filed by the appropriate prosecuting agency against the certificate holder alleging a violation of subdivision (b) of Section 647 of the Penal Code or any other offense described in subdivision (h) of Section 4603, the council shall take all of the following actions: (A) Immediately suspend, on an interim basis, the certificate of that certificate holder. (B) Notify the certificate holder within 10 days at the address last filed with the council that the certificate has been suspended, and the reason for the suspension. (C) Notify any business within 10 days that the council has in its records as employing the certificate holder that the certificate has been suspended. (2) Upon notice to the council that the charges described in paragraph (1) have resulted in a conviction, the suspended certificate shall become subject to permanent revocation. The council shall provide notice to the certificate holder within 10 days that it has evidence of a valid record of conviction and that the certificate will be revoked unless the certificate holder provides evidence within 15 days that the conviction is either invalid or that the information is otherwise erroneous. (3) Upon notice that the charges have resulted in an acquittal, or have otherwise been dismissed prior to conviction, the certificate shall be immediately reinstated and the certificate holder and any business that received notice pursuant to subparagraph (C) of paragraph (1) shall be notified of the reinstatement within 10 days. SEC. 7. Section 4602.5 of the Business and Professions Code is amended to read: Page 6 of 12 http://www.leginfo.ca.gov/pubI11-12lbilUasmlab_0601-0650/ab_619_ bill_ 20110803_ cha... 10/28/2011 AB 619 Assembly Bill -CHAPTERED 4602.5. (a) Upon the request of any law enforcement agency or any other representative of a local government agency with responsibility for regulating, or administering a local ordinance relating to, massage or massage businesses, the council shall provide information concerning a certificate holder, including, but not limited to, the current status of the certificate, any history of disciplinary actions taken against the certificate holder, the home and work addresses of the certificate holder, and any other information in the council's possession that is necessary to verify facts relevant to administering the local ordinance. (b) The council shall accept information provided by any law enforcement agency or any other representative of a local government agency with responsibility for regulating, or administering a local ordinance relating to, massage or massage businesses. The council shall have the responsibility to review any information received and to take any actions authorized by this chapter that are warranted by that information. SEC. 8. Section 4603 of the Business and Professions Code is amended to read: 4603. It is a violation of this chapter for a certificate holder to commit, and the council may deny an application for a certificate or discipline a certificate holder for, any of the following: (a) Unprofessional conduct, including, but not limited to, denial of licensure, revocation, suspension, restriction, or any other disciplinary action against a certificate holder by another state or territory of the United States, by any other government agency, or by another California health care professional licensing board. A certified copy of the decision, order, or judgment shall be conclusive evidence of these actions. (b) Procuring a certificate by fraud, misrepresentation, or mistake. (c) Violating or attempting to violate, directly or indirectly, or assisting in or abetting the violation of, or conspiring to violate, any provision or term of this chapter or any rule or bylaw adopted by the council. (d) Conviction of any felony, or conviction of a misdemeanor that is substantially related to the qualifications or duties of a certificate holder, in which event the record of the conviction shall be conclusive evidence of the crime. (e) Impersonating an applicant or acting as a proxy for an applicant in any examination referred to under this chapter for the issuance of a certificate. (f) Impersonating a certified practitioner or therapist, or permitting or allowing an uncertified person to use a certificate. (g) Committing any fraudulent, dishonest, or corrupt act that is substantially related to the qualifications or duties of a certificate holder. (h) Committing any act punishable as a sexually related crime. SEC. 9. Section 4603.1 of the Business and Professions Code is amended to read: 4603.1. (a) No certificate holder or certificate applicant may be disciplined or denied a certificate pursuant to Section 4603 except according to procedures satisfying the requirements of this section. A denial or discipline not in accord with this section or subdivision (c) of Section 4602 shall be void and without effect. (b) Any certificate applicant denial or certificate holder discipline shall be done in good faith and in a fair and reasonable manner. Any procedure that conforms to the requirements of subdivision (c) is fair and reasonable, but a court may also find other procedures to be fair and reasonable when the full Page 7of12 http://www.leginfo.ca.gov/pub/11-12/bill/asm/ab_0601-0650/ab_619 _bill_20110803 _cha... 10/28/2011 AB 619 Assembly Bill-CHAPTERED circumstances of the certificate denial or certificate holder discipline are considered. (c) A procedure is fair and reasonable when the procedures in subdivision (c) of Section 4602 are followed, or if all of the following apply: (1) The provisions of the procedure have been set forth in the articles or bylaws, or copies of those provisions are sent annually to all the members as required by the articles or bylaws. (2) It provides the giving of 15 days prior notice of the certificate denial or certificate holder discipline and the reasons therefor. (3) It provides an opportunity for the certificate applicant or certificate holder to be heard, orally or in writing, not less than five days before the effective date of the certificate denial or certificate holder discipline by a person or body authorized to decide that the proposed certificate denial or certificate holder discipline not take place. (d) Any notice required under this section may be given by any method reasonably calculated to provide actual notice. Any notice given by mail must be given by first-class or certified mail sent to the last address of the certificate applicant or certificate holder shown on the council's records. (e) Any action challenging a certificate denial or certificate holder discipline, including any claim alleging defective notice, shall be commenced within one year after the date of the certificate denial or certificate holder discipline. If the action is successful, the court may order any relief, including reinstatement, that it finds equitable under the circumstances. (f) This section governs only the procedures for certificate denial or certificate holder discipline and not the SUbstantive grounds therefor. A certificate denial or certificate holder discipline based upon substantive grounds that violates contractual or other rights of the member or is otherwise unlawful is not made valid by compliance with this section. (g) The council shall be sued only in the county of its principal office. SEC. 10. Section 4603.5 of the Business and Professions Code is amended to read: 4603.5. It shall be the responsibility of any certificate holder to notify the council of his or her home address, as well as the address of any business establishment where he or she regularly works as a massage therapist or massage practitioner, whether as an employee or as an independent contractor. A certificate holder shall notify the council within 30 days of changing either his or her home address or the address of the business establishment where he or she regularly works as a massage therapist or massage practitioner. SEC. 11. Section 4603.7 is added to the Business and Professions Code, to read: 4603.7. A certificate holder shall include the name under which he or she is certified and his or her certificate number in any and all advertising and shall display his or her certificate at his or her place of business. SEC. 12. Section 4604 of the Business and Professions Code is amended to read: 4604. (a) Notwithstanding Section 4601, the council may grant a massage practitioner certificate to any person who applies on or before January 1, 2012, with one of the following: (1) A current valid massage permit or license from a California city, county, or city and county and documentation evidencing that the person has completed at least a 100-hour course in massage at an Page 8of12 http://www.leginfo.ca.gov/pub/II-12Ibilllasmlab_0601-0650/ab_ 619 _bill_2011 0803_ cha... 10/2812011 AB 619 Assembly Bill-CHAPTERED approved or registered school, or out-of-state school recognized by the council as providing comparable education, has been practicing for at least three years, and has provided at least 1,000 hours of massage to members of the public for compensation. (2) Documentation evidencing that the person has completed at least a 100-hour course in massage at an approved or registered school, or out-of-state school recognized by the council as providing comparable education, has been practicing for at least three years, and has provided at least 1,750 hours of massage to members of the public for compensation. For purposes of this subdivision, evidence of practice shall include either of the following: (A) A W-2 form or employer's affidavit containing the dates of the applicant's employment. (B) Tax returns indicating self-employment as a massage practitioner or massage therapist or any other title that may demonstrate experience in the field of massage. (3) Documentation evidencing that the person holds a current valid certificate of authorization as an instructor at an approved massage school, or holds the position of a massage instructor at a school accredited by an agency recognized by the United States Department of Education, or colleges and universities of the state higher education system, as defined in Section 100850 of the Education Code. (b) (1) After reviewing the information submitted under subdivision (a), the council may require additional information necessary to enable it to determine whether to issue a certificate. (2) If an applicant under paragraph (1) of subdivision (a) or paragraph (1) of subdivision (c) has not complied with Section 4601.3, or its equivalent, when obtaining a license or permit from the city, county, or city and county, the council shall require the applicant to comply with Section 4601.3 prior to issuing a certificate pursuant to this section. (c) (1) A person applying for a massage practitioner certificate on or. before January 1, 2012, who meets the educational requirements of either paragraph (1) or (2) of subdivision (a), but who has not completed the required number of practice hours prior to submitting an application pursuant to this section, may apply for a conditional certificate. (2) An applicant for a conditional certificate shall, within five years of being issued the conditional certificate, be required to complete at least 30 hours of additional education per year from schools or courses described in paragraph (5) until he or she has completed a total of at least 250 hours of education, which may include massage education hours previously completed in a massage course described in either paragraph (1) or (2) of subdivision (a). (3) Upon successful completion of the requirements of this subdivision, the council shall issue a certificate to the person that is not conditional. (4) A conditional certificate issued to any person pursuant to this subdivision shall immediately be nullified, without need for further action by the council, if the time period specified in paragraph (2) expires without proof of completion of the requirements having been filed with the council. (5) Any additional education required by this section may be completed through courses provided by any of the following: (A) An approved school. (B) A registered school. (C) A provider approved by, or registered with, the councilor the Department of Consumer Affairs. (D) A provider that establishes to the satisfaction of the council Page 9 of 12 http://www.leginfo.ca.gov/pubI11-12Ibilllasmlab_0601-0650/ab_619 _ bill_ 20110803_ cha... 10/28/2011 AB 619 Assembly Bill -CHAPTERED that its course or courses are appropriate educational programs for this purpose. ( d) exercising respect to SEC. 13. Nothing in this section shall preclude the council from any power or authority conferred by this chapter with a conditional certificate holder. Section 4612 of the Business and Professions Code is amended to read: 4612. (a) (1) The holder of a certificate issued pursuant to this chapter shall have the right to practice massage, consistent with this chapter and the qualifications established by his or her certification, in any city, county, or city and county in this state and shall not be required to obtain any other license, permit, or other authorization, except as provided in this section, to engage in that practice. (2) Notwithstanding any other provision of law, a city, county, or city and county shall not enact an ordinance that requires a license, permit, or other authorization to provide massage for compensation by an individual who is certified pursuant to this chapter and who is practicing consistent with the qualifications established by his or her certification, or by a massage business or massage establishment that employs or uses only persons who are certified pursuant to this chapter to provide massage for compensation. No provision of any ordinance enacted by a city, county, or city and county that is in effect before the effective date of this chapter, and that requires a license, permit, or other authorization to provide massage for compensation, may be enforced against an individual who is certified pursuant to this chapter or against a massage business or massage establishment that employs or uses only persons who are certified pursuant to this chapter to provide massage for compensation. (3) Except as provided in subdivision (b), nothing in this section shall be interpreted to prevent a city, county, or city and county from adopting or enforcing any local ordinance that provides for reasonable health and safety requirements for massage establishments or businesses. Subdivision (b) shall not apply to any massage establishment or business that employs or uses persons to provide massage services who are not certified pursuant to this chapter. (b) (1) This subdivision shall apply only to massage establishments or businesses that are sole proprietorships, where the sole proprietor is certified pursuant to this chapter, and to massage establishments or businesses that employ or use only persons certified pursuant to this chapter to provide massage services. For purposes of this subdivision, a sole proprietorship is a business where the owner is the only person employed by that business to provide massage services. (2) (A) Any massage establishment or business described in paragraph (1) shall maintain on its premises evidence for review by local authorities that demonstrates that all persons providing massage services are certified. (B) Nothing in this section shall preclude a city, county, or city and county from including in a local ordinance a provision that requires a business described in paragraph (1) to file copies or provide other evidence of the certificates held by the persons who are providing massage services at the business. (3) A city, county, or city and county may charge a massage business or establishment a business licensing fee, provided that the fee shall be no different than the fee that is uniformly applied to all other individuals and businesses providing professional services, as defined in subdivision (a) of Section 13401 of the Corporations Page 10 of 12 http://www.leginfo.ca.gov/pubI11-12lhill/asm/ab_060l-0650/ab_619 _bile 20110803 _cha... 10/28/2011 AB 619 Assembly Bill -CHAPTERED Code. (4) Nothing in this section shall prohibit a city, county, or city and county from enacting ordinances, regulations, rules, requirements, restrictions, land use regulations, moratoria, conditional use permits, or zoning requirements applicable to an individual certified pursuant to this chapter or to a massage establishment or business that uses only individuals who are certified pursuant to this chapter to provide massage for compensation, provided that, unless otherwise exempted by this chapter, these ordinances, regulations, rules, requirements, restrictions, land use regulations, moratoria, conditional use permits, and zoning requirements shall be no different than the requirements that are uniformly applied to all other individuals and businesses providing professional services, as defined in subdivision (a) of Section 13401 of the Corporations Code. No provision of any ordinance, regulation, rule, requirement, restriction, land use regulation, moratoria, conditional use permit, or zoning requirement enacted by a city, county, or city and county that is in effect before the effective date of this chapter, and that is inconsistent with this paragraph, may be enforced against an individual who is certified pursuant to this chapter or against a massage business or massage establishment that uses only individuals who are certified pursuant to this chapter to provide massage for compensation. (5) Local building code or physical facility requirements applicable to massage establishments or businesses shall not require additional restroom, shower, or other facilities that are not uniformly applicable to other professional or personal service businesses, nor shall building or facility requirements be adopted that (A) require unlocked doors when there is no staff available to ensure security for clients and massage staff who are behind closed doors, or (B) require windows that provide a view into massage rooms that interfere with the privacy of clients of the massage business. (6) A city, county, or city and county may adopt reasonable health and safety requirements with respect to massage establishments or businesses, including, but not limited to, requirements for cleanliness of massage rooms, towels and linens, and reasonable attire and personal hygiene requirements for persons providing massage services, provided that nothing in this paragraph shall be interpreted to authorize adoption of local ordinances that impose additional qualifications, such as medical examinations, background checks, or other criteria, upon any person certified pursuant to this chapter. (7) Nothing in this section shall preclude a city, county, or city and county from doing any of the following: (A) Requiring an applicant for a business license to operate a massage business or establishment to fill out an application that requests the applicant to provide relevant information. (B) Making reasonable investigations into the information so provided. (C) Denying or restricting a business license if the applicant has provided materially false information. (c) An owner or operator of a massage business or establishment subject to subdivision (b) shall be responsible for the conduct of all employees or independent contractors working on the premises of the business. Failure to comply with this chapter may result in revocation of the owner's or operator's certificate in accordance with Section 4603. Nothing in this section shall preclude a local ordinance from authorizing suspension, revocation, or other restriction of a license or permit issued to a massage establishment or business if violations of this chapter, or of the local ordinance, Page 11 of 12 http://www.leginfo.ca.gov/pubI11-12lhill/asm/ab_0601-0650/ab_619 _ bill_ 20110803 _ cha... 10128/2011 AB 619 Assembly Bill-CHAPTERED occur on the business premises. (d) Nothing in this section shall preclude a city, county, or and county from adopting a local ordinance that is applicable to massage businesses or establishments described in paragraph (1) of subdivision (b) and that does either of the following: (1) Provides that duly authorized officials of the city, county, or city and county have the right to conduct reasonable inspections, during regular business hours, to ensure compliance with this chapter, the local ordinance, or other applicable fire and health and requirements. (2) Requires an owner or operator to noti the city, county, or city and county of any intention to rename, change management, or convey the business to another person. (e) Nothing in this chapter shall be construed to preclude a city, county, or city and county from requiring a background check of an owner or operator of a massage establishment who owns 5 percent or more of a massage business or massage establishment and who is not certified pursuant to this chapter. The background check may consist of an application that requires the applicant to state information, including, but not limited to, the applicant's business, occupation, and employment history for the five years preceding the date of application, the inclusive dates of same, and the name and address of any massage business or other like establishment owned or operated by any person who is subject to the background check requirement of this subdivision. SEC. 14. Section 4615 of the Business and Professions Code is amended to read: 4615. This chapter shall be subject to the review required by Article 7.5 (commencing with Section 9147.7) of Chapter 1.5 of Part 1 of Division 2 of the Government Code. SEC. 15. Section 4616 is added to the Business and Professions Code, to read: 4616. This chapter shall be liberally construed to effectuate its purposes. If any provision of this chapter or the application thereof to any person or circumstance is held to be invalid, the invalidity shall not affect other provisions or applications of the chapter that can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable. Page 12 of12 http://www.leginfo.ca.gov/pub/II-12Ibilllasmlab_0601-0650/ab_619 _ bill_20 11 0803_ cha... 10/28/2011 ***Proposed Massage Municipal Code*** 4.54.010 Purpose and intent. It is the purpose and intent of this chapter to provide for the orderly regulation of massage establishments and massage technicians, as defined in this chapter, in the interests of the public health, safety, and welfare by providing certain minimum building, sanitation and health standards for massage establishments, and by providing certain minimum qualifications for the operators of massage establishments and for massage technicians and massage technician trainees. Unless otherwise indicated, the requirements of this Code shall not apply to massage practitioners and therapists certified by the California Massage Therapy Council (CAMTC) or establishments in which the practitioners are all CAMTC certified. 4.54.020 Definitions. (a) For the purpose of this chapter, unless the context clearly requires a different meaning, the words, terms and phrases set forth in this section shall have the meanings given them in this section: (1) "Massage” means any method of pressure on, or friction against, or stroking, kneading, rubbing, tapping, pounding, vibrating or stimulating the external parts of the human body with the hands or with the aid of any mechanical or electrical apparatus, or other appliances or devices, with or without such supplementary aids as rubbing alcohol, liniment, antiseptic, oil, powder, cream, lotion, ointment or other similar preparations. (2) “Massage technician" means any person who administers massages, baths or health treatments involving massage or baths as the principal functions to another person for any consideration whatsoever. (3) “Massage technician trainee” means a student who works in a massage establishment under the supervision and direction of a massage technician who has received a permit issued under the provisions of this chapter. (4) "Massage establishment" means any establishment with more than one massage technician having a fixed place of business where any, firm, association, partnership, corporation, joint venture or combination of individuals engages in, conducts, carries on or permits to be engaged in, conducted or carried on massages, baths or health treatments involving massage or baths, where massage is part of primary function of the business. (5) "Sole Proprietor Massage establishment" means any owner-operated establishment having a fixed place of business where an individual, carries on or permits to be engaged in, conducted or carried on massages, baths or health treatments involving massage or baths as the principal functions. 1 (6) “Recognized school of massage” means any school or institution of learning which teaches the theory, ethics, practice, profession and work of massage. The student shall possess a diploma or certificate of graduation from such school or institution of learning following the successful completion of such course of study or learning, and which school has been approved pursuant to California Education Code Section 29025, or, if said school is not located in California, has complied with standards commensurate with those required in said Section 29025. Any school or institution of learning offering or allowing correspondence course credit not requiring actual attendance at class, or courses of a massage technician not approved by the California State Department of Education shall not be deemed a "recognized school of massage." (7) "Permit" means the permit to engage in the activities of a massage technician or a massage technician trainee as required by this chapter. (8) "Person" means any individual, firm, association, partnership, corporation, joint venture or combination of individuals. (9) “California Massage Therapy Council” (CAMTC) means the governing non- profit board that is authorized to evaluate qualifications of massage therapists and issue certification in the State of California. (10) “Accessory Technician Permit” A technician who is not a sole proprietorship may be eligible to receive an accessory technician permit. This permit will allow massage to be conducted within a business that is not a massage establishment, provided the following requirements are met: a. The technician must provide the police department with sufficient evidence to demonstrate that he or she is an independent contractor or an employee of the business. b. The business is not in the regular business of providing massage. c. The technician must obtain a massage technician permit as required by section 4.54.060 of this code. 4.54.030 Massage establishment permit required. (a) Except as otherwise provided, it is unlawful for any person to engage in, conduct or carry on, in or upon any premises within the city the operation of massage establishment without a permit obtained from the chief of police, as required by this chapter. A massage establishment permit shall be issued to any person who has complied with the requirements of Sections 4.54.050 and 4.54.110 of this chapter, and all other applicable provisions of this code or state law, as applicable; unless grounds for denial of 2 such permit are found to exist. In addition to those set forth in Section 4.04.140, grounds for denial include: (1) The applicant made a material misstatement in the application for a permit; (2) The applicant has, within five years immediately preceding the date of the filing of the application, been convicted in a court of competent jurisdiction of an offense involving conduct which requires registration under California Penal Code Section 290, or any violations of Sections 311 through 311.7, 313.1, 314, 315, 316, 318 or 647(a), 647(b), 647(d), or 647(h) of the California Penal Code, or of any offense involving theft of property or violence; (3) That the operation of a massage establishment, as proposed by the applicant if permitted, would not comply with all applicable laws including, but not limited to, all city ordinances and regulations; (4) That the operation of the proposed massage establishment is likely to be injurious to the health, safety, welfare, and interest of the people of the city; (5) That the applicant is lacking in the background and qualifications to conduct a bona fide massage establishment; or (6) That the applicant has violated any provision of this chapter, or of any similar ordinance, law, rule or regulation of another public agency which regulates the operation of massage establishments. (7) That the CAMTC has revoked, suspended, or denied the applicant a permit. 4.54.040 Massage establishment permit application fee; renewal (a) Any application for a permit to operate a massage establishment shall be accompanied by a nonrefundable fee as set forth in the municipal fee schedule. The application fee shall be used to defray, in part, the costs of investigation and report, and is not made in lieu of any other fees or taxes required under this code. (b) A permit to operate a massage establishment shall be renewed annually. The renewal fee shall be as set forth in the municipal fee schedule. In addition, the massage technician must also submit valid identification, massage certification and a completed new permit application. 4.54.050 Application for massage establishment permit. (a) Any application for a permit to operate a massage establishment shall be made with the chief of police. Within thirty working days following receipt of a completed application and LiveScan results, the chief of police shall either issue the permit or mail a 3 written statement of his reasons for denial thereof. The application shall set forth the exact nature of the massage bath or health treatment to be administered, the proposed place of business and facilities therefore, and the name and address of each applicant. The chief of police may request the applicant to allow fingerprints to be taken when needed for the purpose of establishing identification. In addition to the requirements of Chapter 4.04 and this section, any applicant shall furnish the following items: 1. The address of the proposed location 2. The previous addresses of applicant, if any, for a period of three years immediately prior to the date of the application and the dates of residence at each; 3. Written proof that the applicant is at least eighteen years of age; 4. Applicant's height, weight, color of eyes and hair; 5. Two recent passport photos 6. Business, occupation or employment history of the applicant for the three years immediately preceding the date of the application; 7. If the applicant is a corporation, the name of the corporation shall be set forth exactly as shown in its articles of incorporation, together with the names and residence addresses of each of its officers, directors, and each stockholder holding more than five percent of the stock of the corporation. If the applicant is a partnership, the application shall set forth the name and residence address of each of the partners, including limited partners. If one or more of the partners is a corporation, the provisions of this section pertaining to a corporate applicant shall apply; 8. The names and residence addresses of all persons currently employed or intended to be employed in the massage establishment, regardless of the nature of the employment, other than any person permitted pursuant to Section 4.54.060, along with the proposed or actual nature of the work performed or to be performed, and recent passport-size photographs, suitable to the police officer or designee processing the application, of each such employee. The chief of police may require such employee to allow fingerprints to be taken for the purpose of identification. Any applicant or permitee shall notify the city in writing of the names, addresses and nature of the work, of any new employees, within five days of such employment, and supply the photographs described in this subsection. Such new employees shall allow fingerprints to be taken for the purpose of identification upon request. "Employee" includes every owner, partner, manager, supervisor and worker, whether paid or not, who renders personal services of any nature in the operation of a massage establishment. 9. Such other information as may be deemed necessary by the chief of police. (b) Proof of malpractice insurance coverage or equivalent with a minimum of $100,000 coverage shall be required within 30 days of permit issuance. 4.54.060 Massage technician permit required. 4 (a) It is unlawful for any person to act as a massage technician or a massage technician trainee unless such person holds a valid permit issued by the chief of police or a certification from the CAMTC. A massage technician permit shall be issued to any person who has fulfilled the requirements of Section 4.54.080, and all other provisions of this code or state law, as applicable; unless grounds for denial of such permit are found to exist. In addition to those set forth in Section 4.04.140, grounds for denial include: (1) The applicant made a material misstatement in the application for a permit; (2) The applicant has, within five years immediately preceding the date of the filing of the application, been convicted in a court of competent jurisdiction of an offense involving conduct which requires registration under California Penal Code Section 290, or any violations of Sections 311 through 311.7, 313.1, 314, 315, 316, 318 or 647(a), 647(b), 647(d), or 647(h) of the California Penal Code, or of any offense involving theft of property or violence; (3) That the issuance of the permit is likely to be injurious to the health, safety, welfare, and interest of the people of the city; (4) That the applicant is lacking in the background and qualifications to act as a massage technician; or (5) That the applicant has violated any provision of this chapter, or of any similar ordinance, law, rule or regulation of another public agency which regulates the operation of massage establishments or massage technicians. (6) That the CAMTC has revoked, suspended, or denied the applicant a permit. (b) A permit issued by the chief of police is not required for any massage technician and massage establishments if the owners and all technicians are massage practitioners or therapists, who are operating under a valid certificate issued by the Massage Therapist Organization (also known as the California Massage Therapy Council), per Chapter 10.5 (Commencing with Section 4600) of Division 2 of the California Business and Professions Code relating to massage therapy, provided however, that such person and business shall not be exempted from this Article if Chapter 10.5 is repealed. However notification of the CAMTC certification number must still be made to the police department where the CAMTC permit holder is working. 4.54.065 Education Requirements (a) General educational requirements. Except as indicated below, all applicants for a Massage Technician permit must meet the following educational standards to qualify for such permit, at the discretion of the Chief of Police: (1) Possession of a diploma or certificate of completion from a “recognized school of massage” which shows satisfactory completion of a resident course of study of 5 a minimum of two hundred (200) verifiable hours on the theory, ethics, history, practice, and/or methods of massage therapy, including the study of anatomy, physiology and hygiene. (b) Exemptions from educational requirements. The following persons are exempt from the educational requirements set forth in subsection (a) above: (1) Holders of Massage Establishment business permits and Massage Technician business permits issued by the City before the effective date of this Chapter shall have a period of eighteen (18) months from the effective date of this Chapter to satisfy the educational requirements set forth in subsection (a) above. (2) Eighteen (18) months from the effective date of this ordinance, any therapist who does not have the required 200 hours of education will not be permitted to practice massage in Palo Alto. However, the chief of police may provide special consideration on a case-by-case basis to those massage technicians who can prove through documentation that they are currently enrolled in coursework associated with massage therapy and compliance of the 200 hour requirement is expected within a reasonable amount of time. 4.54.070 Massage technician application fee. Any application for a permit to act as a massage technician shall be accompanied by a nonrefundable fee as set forth in the municipal fee schedule. A massage technician permit shall be renewed annually. The renewal fee shall be as set forth in the municipal fee schedule. Any person who applies for a permit to operate a massage establishment and who desires to act as a massage technician within said establishment shall not be required to furnish the information set forth in Section 4.54.080. 4.54.080 Application for massage technician permit. (a) Any application for a permit to act as a massage technician shall be made with the chief of police. Within thirty working days following receipt of a completed application and LiveScan results, the chief of police shall either issue the permit, or mail a written statement of his reasons for denial thereof. If he takes neither action, the permit shall be deemed to be issued. The chief of police may request the applicant to furnish fingerprints when needed for the purpose of establishing identification. In addition to the requirements of Chapter 4.04, the applicant shall furnish the following items: (1) Name, residence address and telephone number; (2) Social security number and driver's license number, if any; (3) Applicant's weight, height, color of hair and eyes; (4) Two recent passport photos of applicant; 6 (5) Written evidence that the applicant is at least eighteen years of age; (6) Business, occupation or employment of the applicant for the three years immediately preceding the date of application; (7) The name and address of the establishment where the applicant is to be employed, and the name of the owner or operator of the same. Any massage technician granted a permit pursuant to this section must report a change in massage establishment employment within five days of said change; (8) The name and address of the “recognized school of massage” attended, the date attended, and a copy of the diploma or certificate of graduation awarded to the applicant, or other documentation showing the applicant has completed 200 hours. 4.54.090 Massage technician trainee. (a) Any person desiring to obtain a permit to act as a massage technician trainee shall make an application to the chief of police. Within thirty working days following receipt of a completed application and having received LiveScan results, the chief of police shall either issue the permit, or mail a written statement of his reasons for denial thereof. If he takes neither action, the permit shall be deemed to be issued. A massage technician trainee permit shall be issued to any person who has fulfilled all the requirements of Section 4.54.080, except item (8), and who produces written proof that the applicant is currently enrolled in a “recognized school of massage”, as defined in this chapter; of the date the applicant enrolled in the recognized school of massage; and the scheduled date of graduation; and that the applicant has completed at least fifty hours of instruction and the date this instruction was completed; provided the applicant submits a letter signed by the owner or manager of a permitted massage establishment stating his immediate intent to employ the applicant to do massage as a trainee working under the direct supervision and control of a massage technician who has received a permit under the provisions of this chapter unless: (1) The applicant knowingly made a material misstatement in the application for the trainee permit; or (2) The applicant has, within five years immediately preceding the date of the filing of the application, been convicted in a court of competent jurisdiction of an offense involving conduct which requires registration under California Penal Code Section 290, or any violation of Sections 311 through 311.7, 313.1, 314, 315, 316, 318 or 647(a), 647(b), 647(d) or 647(h) of the California Penal Code or of any offense involving theft of property. No fee shall be required of a massage technician trainee applicant. The trainee must at all times comply with the laws relating to massage establishments, and the failure to comply may render the trainee ineligible to obtain a massage technician permit. 7 Any massage technician trainee who, during the life of the trainee permit, completes the instruction required of a massage technician, shall be issued a massage technician permit upon payment of a massage technician application fee as set forth in the municipal fee schedule. 4.54.100 Appeal. In the event a permit or permit application has been denied, the applicant shall proceed pursuant to the appeal and hearing provision in Chapter 4.04. 4.54.110 Massage establishment facilities and operations requirements. (a) Except as otherwise indicated, all massage establishments, including those certified by CAMTC, shall comply with the following facilities and operations requirements: (1) Massage establishments shall comply with all code requirements. (2) A minimum of one toilet and wash basin shall be provided in every massage establishment. (3) Cabinets or other covered space shall be provided for the storage of clean linen. Approved receptacles shall be provided for the storage of all soiled linen and paper towels. (4) Minimum ventilation shall be provided in accordance with the building code of the city. To allow for adequate ventilation in cubicles, rooms and areas provided for patrons' use, which are not serviced directly by required window or mechanical systems of ventilation, partitions shall be constructed so that the height of partition does not exceed seventy-five percent of the floor-to-ceiling height of the area in which they are located. (5) All plumbing and electrical installations shall be installed under permit and inspection of the building inspection department, and such installations shall be installed in accordance with the Uniform Building Code and the Uniform Plumbing Code. (6) The walls in all rooms where water or steam baths are given shall have a washable, mold-resistant surface. (7) All lavatories or wash basins shall be provided with hot and cold running water, soap and single-service towels in wall-mounted dispensers. (8) Security deposit facilities capable of being locked by the patron or a security bag that may be carried by the patron shall be available for the protection of the valuables of the patrons. 8 (9) Every portion of a massage establishment, including appliances, apparatus and personnel, shall be kept clean and operated in a sanitary condition. (10) All massage establishments shall provide clean and sanitary towels, sheets and linens in sufficient quantity. Towels, sheets and linens shall not be used by more than one person. Reuse of such linen is prohibited unless the same has first been laundered. Heavy white paper may be substituted for sheets; provided, that such paper is used once for each person and then discarded into a sanitary receptacle. (11) All walls, ceilings, floors, pools, showers, bathtubs, steam rooms and all other physical facilities for the establishment must be in good repair and maintained in a clean and sanitary condition. Wet and dry heat rooms, steam or vapor rooms, or steam or vapor cabinets, shower compartments and toilet rooms shall be thoroughly cleaned and disinfected each day the business is in operation. Bathtubs shall be thoroughly cleaned and disinfected after each use. (12) Disinfecting agents and sterilizing equipment shall be provided for any instruments used in performing acts of massage and said instruments shall be disinfected and sterilized after each use. (13) Pads used on massage tables shall be covered with durable, washable plastic or other acceptable waterproof material. (14) (A) To protect patrons from potential health and sanitary hazards, all employees, massage technicians and massage technician trainees shall be clean and shall perform all services on the premises in full, clean outer garments. (B) Exception. A massage technician may perform services wearing no clothing or wearing less than full outer garments when teaching a class gathered to learn the theory, practice, or work of massage, and when said class consists in part of massage by the technician or members of the gathered class. The following items, (15) through (18), shall not apply to CAMTC certified establishments: (15) Each service offered, the price thereof, and the minimum length of time such service shall be performed shall be posted or shall be available in a conspicuous public location in each massage establishment. All letters and numbers shall be capitals, and not smaller than 14 point font. (16) (A) Massage establishments shall close and remain closed from eleven p.m. (11 p.m.) to nine a.m. (9:00 a.m.) (B) After one year of operation a massage establishment may be exempted from the hours restrictions of this section by the chief of police upon a written request which details the factual reasons supporting good cause for the exemption. The chief of police, 9 in determining what constitutes good cause for this exemption from the hours restrictions, shall consider and weight the following factors: (i) The criteria outlined in Section 4.04.140 of Chapter 4.04; (ii) The criteria outlined in Section 4.54.030 of this chapter; (iii) The impact which the massage establishment has had on the health, safety, and welfare of the local community, including, but not limited to, parking and traffic congestion; (iv) The massage establishment's compliance or noncompliance with all federal, state, and local laws, including, but not limited to, this municipal code. If, upon review of those factors, the chief of police determines that good cause does exist for the requested exemption, the chief may then exempt the particular massage establishment from the hours restrictions of this section. However, in no event shall any massage establishment close later than two a.m. nor open earlier than six a.m. (C) The exemption from the hours restrictions of this section shall be subject to review and renewal annually at the same time as the renewal of the underlying permit and the same factual showing shall be made as that required for the initial exemption. The chief shall not grant an hours exemption unless said establishment has maintained the criteria specified in Section 4.54.110(a)(16)(B). (17) Every massage establishment and sole proprietor massage establishment shall keep written client records of the following: the date and hour of each service; the name, contact information and sex of each patron; the service provided, and the technician administering the service. This log may be inspected only pursuant to a court order. (Ord. 2833 § 1 (part), 1974) (18) Off-premises Massage Prohibited. Except as otherwise provided, no person, , shall engage in any of the services permitted under this chapter at any place other than an establishment permitted pursuant to Chapter 4.54. 4.54.120 Inspection by officials. Any and all investigating officials of the city shall have the right to enter massage establishments from time to time during regular business hours to make reasonable inspections to observe and enforce compliance with building, fire, electrical, plumbing or health regulations. A warrant shall be obtained whenever required by law. 4.54.130 Business name. 10 No person permitted to operate a massage establishment shall operate under any name or conduct business under any designation not specified in the permit. 4.54.140 Business location change. Upon a change of location of a massage establishment, an application to the chief of police shall be made, and such application shall be granted, provided all applicable provisions of this code are complied with and a change of location fee as set forth in the municipal fee schedule to defray, in part, the costs of investigation and report, has been paid to the city. 4.54.150 Sale or transfer of massage establishment interest. A sale or transfer of any interest in a massage establishment, which interest would be reported as required in this chapter upon application for a massage establishment permit, shall be reported to the chief of police within ten days of such sale or transfer. The chief of police shall investigate any person receiving any interest in a massage establishment as a result of such sale or transfer, and if such person satisfies the requirements relating to massage establishment permit applicants, the existing permit shall be endorsed to include such person. A fee as set forth in the municipal fee schedule shall be paid to the city for the investigation by the chief of police necessitated by each such sale or transfer. 4.54.160 Display of permits, permits. The owner or operator of a massage establishment shall display the massage establishment permit and the permit of each and every massage technician or massage technician trainee employed in the establishment in an open and conspicuous place on the premises or keep the permits together in a designated area, such that the permits are easily accessible for inspection. Passport-size photographs of permittees shall be affixed to the respective permits on display pursuant to this section. Home addresses of massage technicians and massage technician trainees need not be displayed. A fine for continued violation will be collected in an amount to be determined by resolution of the City Council. 4.54.170 Exemptions. The provisions of this Chapter shall not apply to the following classes of individuals while engaged in the performance of the duties of their respective professions: (1) Physicians, surgeons, chiropractors, osteopaths or physical therapists who are duly permitted to practice their respective professions in the state of California; (2) Nurses registered under the laws of the state of California; 11 12 (4)Barbers and beauticians who are duly permitted under the laws of the state of California. 4.54.180 Grounds for denial, probation, and disciplinary action. In addition to any provisions of this chapter, the grounds set forth in Section 4.04.140 shall apply to permits and permits required under this chapter. Any circumstances constituting grounds for denial shall also constitute grounds for revocation, suspension or disciplinary action. 4.54.190 Hearing. Any permittee whose permit has been suspended or revoked shall proceed pursuant to the appeal and hearing provisions of Chapter 4.04. 4.54.200 Application to existing establishments and technicians. All operators of existing massage bath or health treatment establishments, and all persons engaged in giving massage, bathing and health treatments in the city upon the effective date of this chapter shall begin the application process and comply with all application and other requirements within sixty (60) days following the effective date of this chapter. 4.54.210 Application of other code provisions. Chapters 1.08 and 4.04 shall apply to the subject matter of this chapter in all respects, including those not specifically mentioned in this chapter. o 1=! ~ (l) ] ~ ~ LOCAL SURROUNDING CITIES MASSAGE TECHNICIAN RATES SAN MATEO MILLBRAE NEW MASSAGE TECHNICIAN PERMIT $323.00 $697.00 MASSAGE TECHNICIAN RENEWAL .. $188~00 $209.0Q. BELMONT SUNNYVALE MOUNTAIN VIEW PALO ALTO $500.00 $223.00 $409.00 $157.00 $150.00 $223.00 _. $203.00 _ $81.00 NEW MASSAGE TECHNICIAN PERMIT AVERAGE: $385 MASSAGE TECHNICIAN RENEWAL AVERAGE: $176 _ NEW MASSAGE TECHNICIAN PERMIT _MASSAGE TECHNICIAN RENEWAL ~ <v ~ ~O ~~ ~~ <Q<VV ~~ ~~ ~o ~ o «~ c:>"::> ~ 0"::> ~ LOCAL SURROUNDING CITIES MASSAGE ESTABLISHMENT RATES NEW ESTABLISHMENTS ESTABLISHMENT RENEWALS $2,000.00 $1,800.00 $1,600.00 $1,400.00 $1,200.00 $1,000.00 $800.00 $600.00 $400.00 $200.00 $0.00 ~<v0 ~ ~~ SJ ~ ~v <::>~ SAN MATEO $427.00 L... $142.00 t-<v ~O ~~ MILLBRAE $697.00 $209.00 ~ ~~ BELMONT SUNNYVALE MOUNTAIN VIEW PALO ALTO $500.00 $841.00 $811.00 $1,790.00 $150.00 $777.00 $409.00 $810.00 NEW MASSAGE ESTABLISHMENT AVERAGE: $844 MASSAGE ESTABLISHMENT RENEWAL AVERAGE : $416 ,,0 ~ .NEW ESTABLISHMENTS • ESTABLISHMENT RENEWALS <Qo/ ~~ <::>'5 ~~ ~ 0'5 ':YO <l.~ ~ ~~_'"._,~ __ , ............... ::.:: ~. _...;::.~~;.;;=-"o...; .. ~==_~_=~· =.='...:..:..::....---.:;-""""'..o...t..,~~-_~==, ______ _ Minor, Beth From: Sent: To: Subject: Dear City Council T Lance Welsh Oance@lwelsh.coml Monday. February 06,20127:27 PM Council, City Massage Ordinance Thank you for taking the time to read what must be volumes of email{ on this and other issues. Please know that I'm another Palo Alto resident who is surprised to. hear that we need reformed massage ordinances. As a resident for over 20 years, I have seen no evidence that there is a problem here that needs fixing. EspeCially when the cost of even a well-intentioned proactive law would put a burden on some establishments like Happy Feet. I live In Baron Park and visit when work becomes stressful. It's wonderful to live nearby, and nothing against Watercourse Way or other high-end spas{ but even if I could afford it, I'm glad to have the choice to not spend that much money. I've had nothing but good healthy clean service from Happy Feet and am proud to live In a community that hasn't gentrified so much as to wipe out these more affordable shops and services. Please reconsider whether we need to make new laws for problems that don't exist, or at least consider making them with minimal harm to good businesses a.nd our community. Perhaps I'm wrong -if there are problems and compelling reasons for new laws, please enlighten me. Sincerely, Lance Welsh 3885 Magnolia Drive Palo Alto, CA ~4306 1 Teixeira, Barbara From: Sent: To: Minor, Beth on behalf of Council, City Wednesday, February 08, 2012 7:50 AM Teixeira, Barbara Page I of 1 Subject: FW: Massage Ordinance Revision (PD) Agenda Item, February 14, 2012 Policy & Services meeting Attachments: ARCB RAA Brochure 2012 1.6. 12.pdf -1 .. pdf; ARCB Palo Alto. pdf; Califomia Statutes. pdf; Citrus Heights Exemption.pdf; RAC 2011 Brochure.pdf; Reflexology vs Massage (4).pdf; Palo Alto Llr· Whitaker-Harvey. pdf; NIH NCCAM.doc.pdf Hi Barb, This should also go with the massage ordinance report. B- From: Susan Mix [mailto:MlxReflexology@comcast.netj Sent: Tuesday, February 07,20126:05 PM To: Council, aty Subject: Massage Ordinance Revision (PD) Agenda Item, February 14,2012 Policy & Services meeting February 7, 2012 Palo Alto City Council 250 Hamilton Avenue Palo Alto CA 94301 Re: Massage Ordinance Revision (PD) Agenda Item, February 14, 2012 Policy & Services meeting As a representative of the Reflexology Association of California (RAe), I request time for myself and a few other professional reflexologlsts to speak against the issue of amending the Massage Ordinance to include reflexology under the massage regulations. A brief summary of information regarding professional reflexology and legislation pertaining to its practice is attached to this e-mail. Some of the attached documents reference other documents that we will bring to the meeting. Sincerely, Susan l. Mix RAC Vice President 408-829-6249 2/8/2012 Reflexology is: Reflexology is a non-invasive comple- mentlIY practice involving the use of alternating pressure applied to the re- flexes withln the reflex maps of the body located on the fcet, hands and outcrcars. A Typical Reflexology Session: o Is performed on the fect, hands and outer ears. • Only footwear is removed o Average session length is 60 minutes. The Legitimate Reflexology Professional is: o A graduate of a reflexology pro- gmm consisting of at least 200 hours of Imining. o Certified through a national certification board. o Certified through an accredited vocational school. Posted Credentials May Include: o Diploma of Reflexology edw;ation. o Certificate ofCcrtification. o MemheIShip in RAA and the state reflexology ao;;soc1atiOD. o Continuing Education Certificates. o Code of Ethlcs and Business S tan- dards. o Whom to contact with a grievance. History and Science: The art and science of Reflexology is hased on the work of three 20th century medical doetors and a physio- therapist • Dr. William Fitzgerald (USA) • Dr. Joe Shelby Riley (USA) o Dr. Panl Nogier (France) o Eunice Ingham (USA) Reflexology is: o SUpPOrted hy over 300 global research stodies. • Funded by two research gran1s (of several million dollars each) by the National Cancer Institote. • Recognized by the National Center for Complementary and Alternative Medicine as a separate integrative therapy. © 2012 RAAI ARCB ldenti fjin g the Legitimate ReJeXDlogy Practice Etbics and Business Standards An unethical, but growing trend in the USA is the operation of "reflexology parlors or studios" that front for operations of human trafficking and prostitution. All,professi(>nal reflexology form. Professional reflexologists adhere to a strict Code of Ethics and Business Standards set forth by national organizations, educational institutions, and state legislation. Resources For more infonnation or to report a potential case of human tmfficking, please contact your local law enforcement, or. National Human Trafficking Resource Center 1-888-373-7888 www.traffickingresoureecenter.com Professional Organizations in the Reflexology Field Both these Reflexology organizations are independent non-profit corporations governed by their own Board of Directors and work in cooperation with each other. ARCB American Reflexology Certification Board The primary aim of ARCB is to protect the public through certifying the eompetency of tmined reflexology practitioners. To aid the public in locating ARCB eertificants in their area it also provides a national referral directory through their website. Established in 1991, ARCB is a non-profi~ independent national testing agency. As such ARCB is not affiliated with any schooL instructor, business, or association. ARCB 303-933-6921 www.arcb.net RAA Reflexology Association of America RAA, established in 1995, is a member- ship association open to reflexologists, reflexology scbools, and to those who are outside the field, but wish to support reflexology. RAA's primary goals include: • Advancing its members' interests, • • • • Sponsoring a bieunial conference, Acting as a national referral board for its member practitioners. Educating the public on reflexology and its benefits. Acting as a clearinghouse for infor- mation about reGexology to the fed- eral government, the public and its membership. RAA 980-234-0159 W1\o"W.rdlexology-usa.org Michael Rainone Scarsdale, NY PresiJttl~ Lucy Scarhrough jackson, TN Viet' Pr ... sident Janet Q'Foalin LllgUJlll NigueL CA BartI'd S~(retm'Y Perry Dickinson Topeka. KS TrY4Surer Mary Ann Stimmell rvIar~hfie1J, \vr Dij>ccwr Allnalise EveUS()il Old Green\vich, CT Diuctor Shat,+on Vetmeulen Grand Rapid." M( Adminimati!'! Secretary Chd8tine Issei AubuITt,CA Lrgistativc COilJllitaJJt ARCB • PO Box 141553 • Grand Rapids MI 49514 P -303.933.692'1 • f -303.904.0460 tofo@arcb.net • www.arcb.net 7 February 2012 To Whom It May Concern: The challenge faced today is how to regulate and license reflexology businesses that are potentially doing harm without severely restricting the ethical professional practicing reflexologist as an integrative therapist while ensuring public safety. A properly trained and nationally certified reflexologist will have met competency standards. Educational standards are important so that harm does not occur; however, reflexology does not involve invasive techniques, pharmaceutical substances, or is it to be used as a diagnostic tecbnique; therefore it is a low risk practice. Nationally evidence of physical harm due to an incompetent reflexologist has never been reported. Furthermore, the National Center for Complementary and Alternative Medicine (NCCAM) has found those who seek out complementary therapies to be well educated. This in and of itself lends an element to public safety. The decision \0 seek reflexology is controlled by the client (self-referred) and well-educated clients are more likely to know when to seek legal recourse and have adequate resources to pursue damages. Public welfare is served by consumers having broad access to reflexology and knowing that all service providers meet basic standards to perform their work. On the attached page is a list of suggested professional practitioner standards to be met allowing public safety. ARCB is willing to meet with the committee to discuss how best to address the issues it is faced with if further information is required. For immediate response I may be contacted bye-mail at quantumreflexology@earthlink.net or directly by telephone at 530-887-1364. Sincerely, Christine Issel Since .1.99.1 setting the bighr:st testing standards t,) which professional r~~c:xologists aspire Professional Practitioner Standards Setting standards for public safety would include reflexologist providing; a. Proof of U.S. reflexology education of at least 200 hours for each practitioner (if not G.S. then some kind of proof of education). b. National certification with the American Reflexology Certification Board (ARCB). In this way the state, city andfor county do not have to evaluate educational backgrounds and conduct psychometrically valid certification exam testing. See attached brochure for testing prerequisites. The testing process often takes 18 months from submission of the application to grading of documentations. If a reflexologist hss applied for testing, then a letter from ARCB stating the person is a candidate would suffice. c. Membership in professional association(s), the Reflexology Association of America (RAA) and/or the Reflexology Association of California (RAC). Membership also provides a system for grievances to be presented and resolved. ARCB, RAA & RAC investigate complaints and reprimand or otherwise discipline practitioners for a breach in the Code of Ethics and Business Practices. d. Proof of practitioner liability insurance-i.e., liability insurance policy number for each reflexologist. e. And required use of a Full and Fair Disclosure form as mandated by Statute 2053.5-6 of the California Business & Professions Code (Health Freedom of Access to CAM Therapies) which provides guidelines on how CAM therapy practitioners must present themselves. 2007 Profile of a Reflexologist Based on the responses provided in the ARCB National 2007 Job Analysis Survey, the "typical" reflexologist is a 52 year old, Caucasian female who is self-employed in reflexology and practices in a suburban area of New York. "Zoe" has been practicing for about 10 years, sees less than 10 clients per week and carries practice liability insurance. Although, Zoe conducts the majority of her sessions in a private practice at her home, she occasionally makes "outcalls" to her clients' homes. Zoe's sessions last about an hour. For most, reflexology is a mid-life career change. In addition to her "formal" education, from which she hss a four-year degree, Zoe's initial reflexology training consisted of a 200 hour program. To date, she has at least 500 hours of training in reflexology. She likely gained the additional hours of training through attendance at the workshops and conferences held by the state, national and international associations of which she is a member. During the course of her work, Zoe varies the pressure during her thumb and finger movements, uses circular pressure and avoids using her knuckles on the reflex points. She is careful to check with her clients intermittently throughout the session regarding their pressure preferences. She doesn't use tools, but occasionally uses lubricants during her work. Zoe always works on the feet and increasingly is incorporating work on the hands into her sessions. She is less apt to work on the ears. Following a code of ethics and business standards, Zoe doesn't provide psychological counseling, but does engage in active listening. She will often give her clients homework for self-help and will refer them to other health care providers on an "as-needed" basis. Zoe follows a combination ofthe stress reduction, medical and energy models of reflexology, but also believes that there are contraindications that always have to be considered. California Statutes of BUSINESS AND PROFESSIONS CODE Chapter 5 -Medicine -SECTION 2053.5-6 (AKA Health Freedom of Access ofeAM Therapies) 2053.5. (a} Notwithstanding any other provision 0= law, a person who complies with the requirements of Section 2Q53.6 shall not be in violation 0: Section 2051 or 2052 unless that person does any of the following: (1) Conducts surgery or any other procedure on another person that punctures the skin or harmfully invadesthe body. {2) Administers or prescribes ~ray radiation to another person. (3) Prescribes or administers legend drugs or controlled s'..lbstances to another person. (4) Recor.tmends the di8contin'Jance 0: legend drugs or controlled substances prescribed by an appropriately licensed practitioner. (5) Willfully diagnoses and treats a physical or mental condition of any person under circut:lstances or conditions that cause or create a risk of great bodily harm, serious physical or mental illness, or death. (6) Bets fractures. (7) Treats lacerations or abrasions through electrotherapy. (8) Holds out, states, indicates I advertises, or implies to a client or prospective client that he or she is a physician, a surgeon, or a physician and surgeon. (b) A person who advertises any services that are not 'Jl1lawful under Section 2051 or 2052 pursuant to subdivision (a) shall disclose in the advertisement that he or she is not licensed by the state as a healing arts practitioner. 2053.6. (a) A person who provides services pursuant to Section 2053.5 that are not unlawful under Section 2051 or 2052 shall, prior to providing those services, do the following: {l) Disclose to the clie~t in a written statement using plain language the following informati~: {A) That he or she is not a licensed physician. (B) That the treatment is alternative or complementary to healing arts services lice~sed by the state. {C) That the services to be provided are not licensed by the state. (D) The nature of the services to be provided. (E) The theory of treatment upon which the services are based. (F) His or her ed~cational, training, experience, and other qualifications regarding the services to be provided. (2) Obtain a written acknowledgment from theclient stating that ce or she has been provided with the information described in paragraph (1). The client shall be provided with a copy of the written acknowledgement I which shall be maintained by the person providing the service for three years. Cb) The in::ormation required by subdivision (a) shall be provided in a language that the client understands. (c) Nothing in this section or in Section 2053.5 shall be construed to do the following: (1) Affect the scope of practice of licensed physicians and surgeons. (2) Limit the right any other civil remedy to the req'..lirements of of any person to against a person this section, seek relief for negligence or providing services subject CODE OF ORDINANCES City of CITRUS HEIGHTS, CALIFORNIA Codified through Ordinance No. 2011-003, adopted March 24,2011. Chapter 22 -Businesses Article VIII Massage Establishments Sec. 22-600. -Title. Sec. 22-60 I. -Authority. Sec. 22-602. -Purpose and intent. Sec. 22-603. -Application of article to persons engaged in massage as of the effective date of this article; grandfather clause. Sec. 22-604, -Construction of this article with other city codes. Sec. 22-605. -Definitions. Sec. 22-606. -Exemptions from article. ,Secs. 22-607-22-609. -Reserved. Sec. 22-600. -Title. This article shall be known as the "Massage Establishment Licensing Law of the City of Citrus Heights." Sec. 22-605 Definitions The definitions contained in this section shall govern the construction of this article. Words contained in this article but not defined by this section shall be construed according to the ordinary and common usage of the word, taking into consirlemtion the context of the language and the definition of the word as provided in a standard English language dictionary. Applicant means any person who applies for a license as required by this article. In the event the applicant is a non-natural person (e.g. a corporation), the term applicant shaH also include a natural person legally authorized to act on behalf of the applicant and the person submitting the application to the city pursuant to this article. Approved national massage organization or association means an organization recognized by the City of Citrus Heights, specifically the: American Massage Therapy Association (AMTA) or the Associated Bodywork and Massage Professionals (ABMP), or a similar organization which requires: Completion of at least 100 hours of massage training or experience; possession of practitioner's liability insurance coverage in the minimum amount of$2,000,000.00 per event; adherence to a code of ethics; and renewal of an annual membership. Certificate or AlTO certificate means the certificate, or conditional certificate, issued by the massage thempy organization to massage therapists, pursuant to Business and Professions Code § 460 I (c) and to massage practitioners pursuant to subdivision 4601(b), or 4604(a), 4604(c), that entitles the holder to practice massage. When used in this article, "MTO certification" means a person who has a valid, unexpired MTO certificate. Certificate holder means a person who has an valid, unexpired certificate from the MTO to practice massage, who is in good standing with the MTO. Certified massage establishment mean a massage establishment that employs or uses only massage therapists with MTO certification to perfonn massage services. Certified sole proprietorship means a sole proprietorship where the owner has received MTO certification and is the only person employed by that business (0 provide massage services. Chief of police means the Citrus Heights Police Department Chief of Police or hislher designee. City means the City of Citrus Heights. City clerk means the City Clerk of the City of Citrus Heights or hislher designee. City council means the City CA)uncii of the City of Citrus Heights. Continuing education means a class or seminar in massage therapy or related educational subjects, including classes related to anatomy and physiology, contraindications, health and hygiene, provided by a recognized massage school, facility or organization approved by a national massage organization or association, or a state-approved school, or any other certification organization recognized by the finance director. Employee means a person who perfonns any massage service on the premises of a massage establishment on a full-time, part-time, or contract basis, whether or not the person is denominated an employee, independent contractor, agent or otherwise and whether or not the person is paid a salary, wage or other compensation by the massage establishment. Finance director means the City of Citrus Heights Finance Director or hislher designee. Home occupation massage therapist means a massage therapist who engages in the business of massage therapy in hislher home or residence, or who engages in massage therapy in both hislher home or residence and in a massage establishment. Licensee means any person operating or maintaining a massage establishment pursuant to a massage establishment license. Massage means any method of pressure on, or friction against, or stroking, kneadiug, rubbing, tapping, pounding, vibrating, or stimulating of the external parts of the human body below the neck with the hands or other parts of the body, with or without the aid of any mechanical or electrical apparatus or appliances, or with or without supplementary aids such as rubbing alcohol, liniments, antiseptics, oils, powder, creams, lotions, ointroents or other similar preparations commonly used in the practice of massage. Massage establishment means a fixed place of business where any person engages in or carries on massage, as defined by this section, in exchange for any form of consideration. Massage establishment license or license means a license issued by the finance director and required pursuant to this article, to operate or maintain a massage establishment within the city, issued to the massage establishment owner. Massage therapist means any person who gives or administers a massage to another person, for any form of consideration whatsoever. Unless otherwise specified massage therapist includes those persons with MTO certification and those individuals classified by his/her school of education as bodyworkers, bodywork therapists, massage practitioner, bodywork practitioner or massage technicians. Massage therapist permit or permit means a permit issued by the city to a person, which authorizes the person to engage in the business of massage therapy within the city. Massage therapy organization or "MTO" means the nonprofit massage therapy organization established pursuant to Business and Professions Code § 4600 et seq. that has the authority to issue certificates to qualified massage therapists and massage practitioners. Offpremises massage therapist means massage therapists who provide off-premises massage services and who are self-employed and/or who contract with or work for a business other than a massage establishment Massage therapists who conduct massage as a home occupation are engaged in off-premises massage therapist businesses. Permittee means the person issued a massage therapist permit pursuant to this article. Person means any individual, partnership, firm, association, joint stock company, corporation or combination of individuals of whatever form or character. Recognized massage school means a facility that (I) teaches the theory, ethics, practice, profession or work of massage; 2) requires a resident course of stady before the student shall be furnished with a diploma or a cenificate of graduation from such school or institution of learning following the successful completion of such course' of stody or learning; and 3) meets the minimum standards for training and curriculum in massage and related subjects and that was either recognized by the Bureau of Private Postsecondary and Vocational Education pursuant to former Section 94739 of the California Education Code prior to July 1, 2007, and on the date the received hislher certificate, or is recognized by the department of consumer affairs, by an institution accredited by the Accrediting Commission for Senior Colleges and Universities Or the Accrediting Commission for Community and Junior colleges of tho Western Association for Schools and Colleges and that is one ofthe following: (a) a public institution, (b) an institution incorporated and lawfully operating as a nonprofit public benefit corporation under the state of California laws, and that is not managed by an entity for profit; (c) a for-profit institution; (d) an institution incorporated that does not meet all of the criteria in subparagraph (b) that is incorporated and lawfully operating as a nonprofit public benefit corporation, that has been continuously operating since April 15, 1997; (d) a college or university of the state of higher education system, as defined in Education Code § 100850; or (e) a school of greater or equal training that is approved by the corresponding agency recognized by the U.S. Department of Education. Schools or institutions oflearning offering a correspondence course not requiring actual attendance shall not be deemed a recognized massage school. The applicant shall provide the documentation necessary, to the satisfaction of the finance director, to provide proof that his/her school is a recognized massage school. Reflexology means a non-invasive complementary modality involving the use of alternating pressure applied to the reflexes within the reflex maps of the body located on the feet, hands, and outer ears. Responsible person means the person designated by a partnership, finn, association, joint stock company, corporation, limited liability corporation, to be responsible for the operation of the massage establishment. The responsible person must meet the qualifications under this article to receive a massage therapist permit from the city, including the educational requirements, and he/she must also provide documentation to the city evidencing that the corporation, partnership or entity that owns the massage establishment has designated himlher as the responsible person. Specified anatomical areas means, less than completely and opaquely covered: human genitals, public regions, buttocks, or female breasts below a point immediately above the top of the areola, and human male genitals in a discernibly turgid state, even if completely and opaquely covered. (Ord. No. 2008-10, § 1,5-8-2008; Ord. No. 2009-005, § 1,12-10-2009) Sec. 22-606 Exemptions from article This article shall not apply to the following classes ofindividuals and, except as provided in subsections (4) and (5) below, a massage establishment license or massage therapist permit shall not be required of such persons while engaged in the perfurmance of the duties of their respective professions, but such persons must comply with the sanitation and decency requirements of this article: (1) Physicians, surgeons, nurses, chiropractors, osteopaths, acupuncturists, naturopathic doctors and physical therapists who are duly licensed to practice their respective professions in the state, and massage therapists working under the direct supervision of such duly licensed physicians, snrgeons, chiropractors, osteopaths, acupuncturists, naturopathic doctors and physical therapists; (2) Trainers of any amateur, semiprofessional or professional athlete or athletic team; (3) Hospitals, nursing homes, or persons working in any such establishments; (4) Barbers or cosmetologists lawfully carrying out their particular occupation or business, and holding a valid, unrevoked license or certificate of registration issued by the State of California, and where massage comprises not more thaIi 25 percent of the square footage of the establishment; however, any massage therapist engaged in massage at such establishment shall be required to obtain a massage therapist pennit; (5) Athletic clubs or fitness facilities, where such facility is designed and equipped for indoor sports, exercise, or physical education and where massage comprises not more than ten percent of the square footage of the establishment shall not be required to obtain license pursuant to this article; however, any massage therapists engaged in massage at such establishment shall be required to obtain a massage therapist permit. (6) A recognized school ofrnassage which: (i) teaches the theory, ethics, practice, profession and work of massage; (ii) requires a residence course of study to be given before the student is furnished with a diploma or certificate of learning or completion; and (iii) has been approved pursuant to Education Code § 94915, or, if said school is not located in California, has complied with the standards commensurate with those specified in Education Code § 94915, (7) Reflexologists performing reflexology; however, any reflexologist engaged in massage shall be required to obtain a massage therapist pemlit, unless he/she has an MfO certificate, (Ord, No, 2008-10, § 1,5-8-2008; Ord, No, 2009-005, § 2,12-10-2009) P.o.BOX4286 Lakewood, CA 00711 How to Join ow-mission is !O assist each member co ~ rhf!ir viS>m bringing <M communlly roged1er through sIIilred ilt'fMl~ Md enhandng _ pto(€5$iofl as ~ whcle mrongllM!IV1t>m communication and iKtion. We make it eIlSy for )'tJu to got started in what is trIJIy ytIIoIr Association: Go to _.lIefIenlog,<A.arg to apply for membership onlil1e, Or phone us at (310) 899- 6289 to request an appHc.ation by mail. While on the ~ den'l (0IJ1& ro d1fc~ our the flW'1l' member bel>efJl;sI Professional Membership You qualify when you ptOIIlcie proof of either a 2OO-hour l'I!IlelroIogy training school tertifiC3tioll, or natiOnal board tertificatlon. Anlltlill Profe~llJm!,< $75 Associate Membership Associate membership are avajble to reflexology students, accredited reflexology schools, to private business and individuals. Annual Assoda Ie Due, $50 Dr. William Fitzgerald Histor.y Per HeruikLing (1872-1942) (Modern Originator) (1776-1839) Reflexology is the Definition Massage is the systematic application of specific and seientific manipulation pressures to reflex points in of the soft tissues of the the hands and feet Sr;;ol1~of f{actll;~ b.ady The extremities. From the Entirehody ankles and wrists distally to the tips ofthe toes and Basic Premise fingers There are zones and reflex Stroldng restores metabollc areas in the reet and hands imhalance within the soft correspondmg to all lJody tissue. Massage works parts. Reflexology worb through the musculature through the nervous system Body of Knowledge 40+ hooks solely on reflexology Books on massage Separate Reflexology Separate massage schools, schools, associations--local, assoeiations & a national state national, mtemational, certification hody & a national certification body Techniques & Alternating pressure Terminology Tapping Thumb. walking Kneading Fmger wallcing Stroldng Hook and hack-up Friction Rotation on a reflex Shaking Hands, ftJet, & possibly ears AppficaOOn Of To the entire hody Only $hoes & socks Techntques Client undresses . removed National certification Education Educati.onal programs requires a minimum of 200 ~ange from 100-1,OOQhours bours of study & often mcorporating other documented practice of touch modalities relle)(olQgy Scientific research studies Research Worldwide research studies conducted in USA, documenting the Australia, Denmark, Chma therapeutic value of, and elsewhere proving massage . effectiveness ofrefleJtology @ 199_6 American Refiexoloty Certification Board 7 February 2012 To Whom It May Concern: I am a reflexologist working with the Whitaker Wellness Clinic Medical Institute. Reflexology has been used at this internationally recognized clinic for nearly 20 years. The professional application of reflexology and massage as distinct forms of complementary therapies are offered to patients among other doctor ordered procedures. As separate disciplines they utilize different techniques and philosophical approaches resulting in outcomes unique to each' modality. Reflexology works primarily through the nervous system versus the soft tissue. Reflexology has been billed through CAM, PPO of America, Inc. a credentialed national alternative medicine network of providers. CAM PPO maintains an exclusive focus on building a comprehensive, holistic medicine network, ensuring that employees of Parker Hannifin Engineering in our area, with 10,000 covered members, for over 20 years have access to qualified CAM practitioners. With CAM providers in a variety of specialties and extensive online educational resources for members, CAM PPO of America, Inc. encourages CAM use, promoting health and well ness by identifying and credentialing the most qualified CAM practitioners and makes their services available at an affordable cost to patients. It would be a disservice to regulate reflexology under the massage. The issue before you is complex and hopefully working together we can come up with a solution that honors the business owner, reflexologists, and massage therapists while protecting public safety, Sincerely, Paul Harvey, C.R. Whitaker Wellness Institute :: r a d i d c n Z i " 1 ,C ' n j ' : i e : i ~ " '~ . n ~ d : d , n e ~" ' M ; b' , " ~ r e . j ( ; ~ t _ s o r n e of - t h e " r y l , a n y to ! 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" MU : t d . , b o d y _ m e d i c i o , e 1« ~ - o o W< l Y 3 to : h a r ~ a M ' mi r n f ~ ~ _ ~ . : n i ~ . ~ : ~ , ~ i ~ ~ , ~ J b e ~ fa c t o o _ m < a ~ il· - p e r s o n ' i l1 e . a t t h -"E x 3 m ~ !i } ( ' ~ . r n « t i t . n i O r \ c ~, ~ Y P 9 a , 1 POLICY AND SERVICES COMMITTEE EXCERPT Regular Meeting February 14, 2012 Chairperson Price called the meeting to order at 6:04 p.m. in the Council Conference Room, 250 Hamilton Avenue, Palo Alto, California. Present: Espinosa, Klein, Schmid Absent: Holman (Chair) 1. Request Policy and Service Committee Review of the Proposed Ordinance Changes to Section 4.54 Massage Establishments. Assistant to the City Manager, Sheila Tucker stated she would be Staffing the Policy and Services Committee this year and looked forward to working with the Council and serving the Committee. Palo Alto Police Lieutenant, April Wagner stated that the City Attorney’s Office and Police Department Staff members had worked on the proposed Ordinance change for over a year. She said that the Palo Alto Municipal Code Ordinance 4.54 was enacted in 1974 to ensure lawful commerce of massage businesses in Palo Alto. The Palo Alto Police Department (PAPD) was responsible for enforcing the Ordinance. In 1996, state laws were anticipated to change the regulation of massage businesses. The City suspended enforcement on portions of the Ordinance that included, permit renewals, fee collections, and site inspections. Background checks and permitting of new massage applicants continued. The current Ordinance, as written, violated state law. The City had 191 City permitted or California Massage Therapy Council (CAMTC) certified massage therapists. Palo Alto had three permitted massage establishments; Water Course, Body Kneads, and the Massage Therapy Center. There were four establishments that should have been permitted under the current regulations. A City audit revealed two dozen unpermitted massage establishments in Palo Alto. The adoption of Senate Bill 731 (SB731) in September 2009 impacted the ability of municipalities to regulate the practice of massage and the CAMTC, a 2 public, non-profit, benefit corporation was created. The corporation standardized and regulated the issuance of certificates to massage therapists and practitioners. Adoption of Assembly Bill 619 (AB619) in 2011, continued legislative work on portions of SB731 that were going to expire. Fifty percent of the massage therapists in Palo Alto were not state-certified. Many local municipalities revisited their ordinance since the passage of SB731. Staff reviewed local updated ordinances and worked with CAMTC Board Members in creating the document. An outreach program was conducted that involved citizens and therapists in a modification review of the Ordinance. Key objectives were to comply with State regulations, to insure qualified trained workers, exempted CAMTC certified practitioners or be permitted by the City, and allowed sole proprietorships in Palo Alto. The final draft change added language to exempt CAMTC holders from obtaining additional City massage permits, increased education from 100 to 200 hours from an accredited school, added sole proprietorship, required malpractice insurance, must display City permits as required by State law, and to maintain limited client records and made available by a court order. The new Ordinance eliminated special building and zoning requirements by State law and added the ability to deny a City permit to an applicant who had been denied, suspended, or had a CAMTC certificate revoked. The cost recovery fees for the program and Staff time were changed to be consistent with other cities. New establishment fees were $750, renewal fee $450; sole proprietorship fee $350, renewal fee $150; massage technician permit $300, renewal fee $150 for people that did not want to be state certified. A 2-year CAMTC certificate fee was $150, plus a $90 Livescan fingerprint or a criminal history check fee. Practitioners were required to have 250 hours and therapists 500 hours of education from an accredited school. CAMTC certified therapists not establishments. In conclusion, the proposed Ordinance would recognize and allow massage practice to occur in Palo Alto, allowed existing therapists and establishments to continue doing business, and allowed time for the therapists to comply with the requirements. Those who chose to patronize the establishments could feel confident that the therapist had met standardized qualifications. The Ordinance was consistent with other municipalities and state requirements. CAMTC Board Members found the draft Ordinance to be compliant with the state law. The passage of the Ordinance would allow the City to resume consistent enforcement on the massage businesses in Palo Alto. Mark Petersen-Perez, PaloAltoFreePress, spoke that massage therapists and practitioners had the right to deny law enforcement officials the ability to view the records unless they had a court order. The information was sensitive and confidential. 3 Vice President Susan Mix, Reflexology Association of California (Association), stated that the Ordinance revision did not unfairly encompass Reflexology within the Massage Ordinance. She said the scope of practice of Reflexology was a non-invasive, natural system of stress reduction and worked on a fully clothed person and only shoes and socks were removed. Work was done from the ankle to the tips of the toes, from the wrists to the tips of the fingers and the outer ear. Reflexologists do not rub backs of a client. The average price charged per session in the Bay Area was $50 to $100. She raised concerns that there may be establishments that were misclassified in Palo Alto as Reflexology and were included in the Ordinance. She urged the City to adopt an exemption to the Massage Ordinance and to create a separate ordinance for professional Reflexologists to protect the public. She said the Association was willing to work with the PAPD to craft an exemption. Vicky Venter, Reflexologist, stated that Reflexology was not massage. The practice of Reflexology was to bring the body back to balance through relaxation through the nervous system and not the musculature system. She said Reflexology should not be governed under massage laws and should have its own laws to include setting educational standards to support public safety concerns. Christine Issel, Reflexologist and Representative of the American Reflexology Certification Board (ARCB), spoke regarding the regulation and licensing of Reflexology businesses. She said some of the requirements that needed to be considered for licensing were evidence of an ARCB certification, proof of membership from one of the professional organization such as the Reflexology Association of California, proof of practitioner liability insurance, Livescan fingerprints, a government issued identification and to require the disclosure form from the California Business and Professional Code. She suggested setting educational standards and fingerprint requirements with the license application to prevent blurring the law and operating under misleading premises. Beverly D’Urson stated that she patronized Happy Feet Foot Spa in Palo Alto. She opposed the revision to the Ordinance because it would take away the ability to choose certain healing techniques. She said the Happy Feet Foot Spa specialized in a certain massage technique and the revised ordinance would force their staff members to obtain a massage permit. Robert Hessen spoke in support of the Happy Feet Foot Spa and asked that new restrictions not be imposed on the establishment. He clarified that the operation functioned in a transparent, open atmosphere that did not encourage inappropriate behavior. He urged the decision-making members 4 to examine the service that the Happy Feet Foot Spa offered before making a final decision. David Bertelsen, Happy Feet Foot Spa owner, raised concerns that the revision to the Ordinance would require staff members to be licensed under the new law. He urged the Council to reject the changes because anyone that practiced any form of massage would be grouped under one umbrella and would require unnecessary licensing. Ping Bertelsen, Happy Feet Foot Spa owner, stated neighboring cities did not require licensing for businesses similar to theirs and that Palo Alto law enforcement officers tried to convince them otherwise. He said the City of Mountain View had passed an ordinance specifically for their type of practice. A new category was created that exempted non-licensed massage practitioners from the standard massage licensing requirements. She said most of the south Bay Area establishments did not require licensing or fees that had the same type of business as theirs. Babs Mitchell stated that the Palo Alto Police Officers had placed restrictive requirements on various equipment and cleaning procedures in her establishment and stated the issues in question should be revisited. She felt that any establishment that practiced any type of massage should be under one ordinance. Dainuri Rott spoke in support of the Happy Feet Foot Spa. He said the services they offered were the only healthcare he used and were affordable. He asked the City to not enforce an ordinance that would force the establishment to discontinue their practice in Palo Alto. Robin Malmquist stated that the definition of the term “therapist”, “technician”, and “practitioner” used in the Ordinance did not coincide with the definition used by CAMTC. They should be the same, consistent, and easily understood. He asked that the Ordinance not be implemented until after all CAMTC applicants were certified. Applicants waiting to be certified were placed in a state of limbo and faced with having to make a choice to either follow the Ordinance route or CAMTC regulations. Council Member Klein asked if the state would occupy the massage field if the City did not move forward on the revision, and that the speakers at this evening’s meeting may or may not be governed by the state. Assistant City Attorney, Donald Larkin clarified that the state’s intent was to not occupy the field of massage if the City did not move forward on the proposed changes. The state’s attempt was to create a permitting system 5 that would take people away from local regulations. He said the Council had three options: 1) to allow massage practice with a state permit enforced through an ordinance, which was similar to the ordinances in neighboring cities. 2) the City allow people to opt out of local regulations by getting state-certified, which the enacted ordinance change would do, and 3) to repeal the City’s Massage Ordinance and not require practitioners to obtain state certification and the option for no regulations. Council Member Klein restated that if the City did nothing, and the City repealed the City’s Ordinance, which was inconsistent with the state law, there would be no regulations at all. Mr. Larkin said practitioners would not be required to be state-certified and there would be no regulation at all. Council Member Klein asked how was this issue handled in unincorporated areas. Mr. Larkin said they were governed by a County ordinance. Council Member Klein said the state provided the City with a system where the City could opt in and state regulations would take over. Mr. Larkin said that was correct. The state preempted the City from regulating anyone certified by the state but did not preempt the City from anyone who was not state-certified. The state placed the responsibility on the City to regulate non-state certified practitioners. Council Member Klein asked if the City could adopt an ordinance that would require practitioners to pay an annual permit fee of $1 if the City felt it did not require any type of regulations. Mr. Larkin said the City could repeal the existing ordinance and not have any regulations or to have a level of regulation such as a $1 annual permit fee to track permitted practitioners. Council Member Klein asked Mr. Larkin if the City repealed the Ordinance and had no regulations, would there be no regulations set by the state. Mr. Larkin said that was correct. Council Member Klein asked if that had been done elsewhere. Mr. Larkin said not in the local area but could not confirm for statewide. 6 Council Member Klein said there was an issue in the 1970’s and asked if the City had encountered issues in the field of massage within the last 30-years. He asked if this discussion would be taking place if the state had not enacted their law. Code Enforcement Officer, Heather Johnson said possibly. She stated that the CMTC was a voluntary, non-profit, program the City could opt into. The state would not take precedence if Palo Alto did not have a set of regulations. People with no formal training in the field of massage would be able to practice in Palo Alto. She said she could not identify cities that did not have ordinance regulations because the focus was on cities that had and studied their municipal code. Council Member Klein said the City had an Ordinance for 15 years that was in a state of suspense and asked if there had been any problems. Ms. Wagner said no. She said in an attempt to be a little more compliant to the changing regulations only portions of the existing Ordinance were suspended. The City continued to allow new practitioners to practice and did background checks. No fees were charged, and no site inspections were made. Council Member Klein said the massage field had its share of problems with prostitution and asked if there had been problems along those lines or in the practice of massage in Palo Alto in the past 30 years. Ms. Johnson said there had been problems. She said 99.9 percent of the therapists did a great job and provided a good service but a small portion did not. Council Member Klein asked about the Reflexology issue. Ms. Johnson said adopting an ordinance to accommodate Reflexology seemed reasonable. Businesses that were discussed at this evening’s meeting did not fall into the category of Reflexology. The Happy Feet Foot Spa practice fell into the description of massage. Their technique was not limited to touching hands, feet, and ears as regulations defined by the Reflexology Association of California. The issue of Reflexology was not addressed because patrons had described the service they received from the Happy Feet Foot Spa fit the definition of massage. Council Member Klein asked about the situation in the Cities of Mountain View and Los Altos. 7 Ms. Wagner stated that the City of Mountain View accommodated a non- certified massage establishment. The establishment and therapist paid fees but was exempted from education requirements. Council Member Klein said his understanding was that there was intent to exempt sole proprietorship. Ms. Wagner said that was incorrect. She said the definition of a sole proprietor was a single person, massage establishment. It basically was a person practicing massage in a rented room in an office space. Charlie Cullen, Deputy Director of Technical Services, clarified that was prohibited under the old Ordinance and a new category was created in order to certify sole proprietors. The City of Mountain View’s situation was an exception to the rule and had a special category that most other municipalities did not support in their ordinance. The City of Los Altos was on tract to require CMATC certification only and not provide any another method to qualify under their local ordinance. Council Member Klein said it was still unclear what was being accomplished for a sole proprietorship massage establishments. Ms. Wagner said in the effort to try to identify massage therapists they were not aware of that were practicing in Palo Alto, they discovered a large number of individuals who had their own personal offices, their own businesses that were single individuals, renting spaces and had clients. The PAPD deemed Palo Alto as a city that should be pro-business. They felt it was inappropriate to have 75 percent of the therapist not be state-certified. This was an incentive to work with these individuals to allow them to run a successful business, which meant having to change current regulations and to allow single persons to have sole proprietorship establishments. Council Member Klein asked if that individual was being regulated. Ms. Wagner said yes, if they were not state-certified. Council Member Klein said he was having trouble with the language as written in the Municipal Code. He said 4.54.020 defined a massage establishment as any establishment with more than one massage technician. Ms. Wagner said that was correct. It was a single person acting as a business owner and a massage technician. 8 Council Member Klein said his interpretation of the code was that this was one individual not subjected to the City’s regulation. Mr. Larkin said the individual was not subjected to the establishment regulations but was subjected to the individual permit regulations. Council Member Klein asked Mr. Larkin where that statement was located and if it referred to the statement “the technician permit would be required.” Mr. Larkin said yes. Council Member Schmid stated the document did not state this was a Police Department matter and needed clarification on why a law enforcement officer was representing the City. Ms. Wagner stated that a Code Enforcement Officer’s position was charged with enforcing this statute. The position assumed the permitting of taxicabs, alarms, massage establishments, solicitors, but she was not sure how far back the history was of the Code Enforcement Officer assuming the responsibility of permitting. Council Member Schmid said Council Member Klein mentioned there were problems in the field of massage in the 70’s and asked if there had been any problems since. He raised concerns that the Police Department was occupied with critical activities and asked if the field of massage was one of them. Ms. Wagner said 99.9 percent of the time there were none but could be a pervasive problem in communities. She confirmed that Palo Alto had its share of illicit activities but no recent incidents had been identified in massage parlors. Passage of the Ordinance would bring the issue to state law and help the Code Enforcement Officer oversee that the practice of massage functioned accordingly in the community. Council Member Schmid said his contact with the Police was through the Police Blotter in the newspaper and had assumed that every police call was listed. He said he did not recall seeing incidents or complaints that pertained to illicit sexual activities. Ms. Wagner confirmed they had gotten calls and some that required special investigation procedures but none were in massage establishments. Council Member Schmid said it would be helpful and important to have a statement that identified these issues in terms of the number of past and 9 present complaints along with the number of incidents that occurred in neighboring cities. The information would identify that these issues were activities handled by the Police Department and not by another City department. Mr. Cullen clarified that historically the issues that Council Member Klein referred to in the 70’s became an enforcement issue for the Police Department. The enforcement permitting process fell under the Police Department’s jurisdiction when the Ordinance was enacted and remained with the Police Department. The Police Department’s Code Enforcement Officer was a non-sworn, civilian, officer who enforced a number of other ordinances and in charge of permitting, ensured that practitioners complied with the rules and the Ordinance. The Code Enforcement Office could initiate an investigation if she saw an illicit activity occurring but the criminal aspect would be investigated by a sworn officer. Council Member Schmid raised concerns that the CAMTC was a non-profit organization that provided education and certification and that a CAMTC permitted practitioner would be outside the local code enforcement. He asked if that implied that a CAMTC permitted individual was not in danger of illicit activity. Ms. Wagner clarified that the CAMTC had a rigorous application process and had the ability to suspend, revoke, or deny a permit based on a complaint. CAMTC thresholds of complaints were low. Their investigation process was extensive and a practitioner under investigation would face heavy scrutiny. Mr. Larkin clarified that the CAMTC was a non-profit organization, a public benefit corporation created by the state government and a quasi- governmental agency similar to the state bar for attorneys. It was not an independent, non-profit without government functions. Council Member Schmid raised concerns regarding establishments to maintain a logbook. Ms. Wagner clarified the logbook was similar to a hotel registry. Law enforcement officers could review the information but would require a court order. The method was to assist both in the defense or prosecution of a therapist working at a business. Council Member Schmid asked if other professions such as physical therapist or personal trainers were asked to maintain a logbook. 10 Ms. Wagner said they did kept records that contained contact information, such as name, address, phone number and services performed. Hair dressers often maintained a logbook for the purpose of sending out mailers. Council Member Schmid stated that would be different than a logbook that contained specific dates, times, and detailed descriptions of services received. Mr. Cullen clarified that the Police Department was sensitive to the issues involved. Customer records in massage establishments would require a subpoena in order for a law enforcement officer to view the records. The process would be similar to any other business that faced a criminal investigation. He wanted to make clear that the subpoena requirement was added to the regulations. Council Member Schmid said the definition of a massage was touching of the exterior space of the body and could include several areas. He felt the definition of massage was too broad. Reflexology stated they did not have the same temptations that led to past abuses. He asked what definition did the Police Department use and if they felt it was too broad. Ms. Wagner stated the practice of massage involved the manipulation or applying pressure to the body. There was the threat of possible injury to the body during manipulation as well as criminal or sexual aspect that could occur. The definition of massage needed to be broad. The intent of the Ordinance was not to focus on the Reflexologist’s scope of work limited to the hands, feet, and ears but work that extended to the manipulation, applying pressure, and touching all over the body. Council Member Schmid noted that one of the speakers stated that half of the states make a distinction between massage therapy and Reflexology. He said the definition was not a standard definition but an interpretation and broader than others used. Council Member Espinosa stated what the Committee was hearing were issues of trying to determine a problem and how to fix it. There was the issue of illicit activities in Palo Alto and for the Council to support the Police Department to quickly address the situation. The other was how the proposed Ordinance change would impact the massage businesses in terms of people getting healthcare services, training requirements for employees, and wanting to protect the public. The impacts would affect the massage business, entrepreneurs, and small businesses without a real good cause and change an industry on services they were able to provide in the 11 community. He asked what Staff’s thoughts were on his comments and if there were concerns in respect to the development of the Ordinance. Ms. Wagner said everyone’s needs were considered in developing the Ordinance. She said that the category “sole proprietorship” was created to allow businesses to occur, to define massage and that all establishments played by the same rules. Additionally, state-certified people would be exempted. Council Member Espinosa asked if information could be collected regarding illicit activities, not on individual cases, if the Committee wanted to get a better understanding if the problem was significant enough to move forward to consider other impacts. Ms. Wagner explained that the nature of illicit activities occurred behind closed doors and did not know if accurate data could be obtained on the number of illicit activities that occurred. Council Member Espinosa asked if full cost recovery was the goal of the price point. Mr. Cullen said cost recovery probably did not cover Staff’s time spent in the implementation and moving forward on permitting. Council Member Espinosa asked Staff what the timeline would be to carve out the Reflexology portion and to come back to the Committee to address the issue. Ms. Wagner said it could take a few months. There were establishments that referred to themselves as Reflexology and performed other services. She did not think it would be necessary to develop an Ordinance solely for Reflexology. She said a definition could be added to the Ordinance to exempt Reflexology. Council Member Espinosa said the speakers touched on issues the Police Department felt that needed stricter regulations such as the method used to wash down equipment, separate faucets to accommodate hot and cold running water, terminology issues, and implementation dates. He asked if Staff could respond to these issues, was Staff in disagreement, or if further discussions needed to occur. Ms. Wagner said the intent was to apply regulations governed by state laws for municipalities to enforce health and safety rules that applied to massage businesses. She said the terminology issues could be revisited to see if a 12 better term could be used to define “technicians”, “practitioners” and therapists”. Mr. Larkin stated that Staff attempted to answer many of the questions during individual meetings with the practitioners and Staff would revisit comments that were overlooked. Council Member Schmid said Reflexology was an alternative type of practice and had a separate form of certification process. He felt that the Happy Feet Foot Spa was not Reflexology or the standard therapy and appeared to be innocuous. He said there was a spectrum of activities that seemed outside the boundaries that was focused on in reviewing the definitions. He suggested looking at how neighboring jurisdictions dealt with their ordinances, not just in a general sense, but what were the differences and how they might apply to what the City was dealing with. Ms. Wagner said they had reviewed other city ordinances and found there were different distinctions. She disagreed with the statement that the situation of having clothes on in an open room was different from clothes off in a closed room. She felt because there was a layer of clothing between the person’s hands and the body they were working on that through pressure and manipulation did not mean a criminal act could not occur. Happy Feet Foot Spa practiced Reflexology but the major portion of their service was full body massage. She understood why people appreciated the low-cost massage option. The intent of the Police Department was not to put anyone out of business. The Happy Feet Foot Spa proprietors were offered solutions to comply with the proposed Ordinance and time for their employees to get proper training. Mr. Bertelsen’s response was that Happy Feet Foot Spa would be put out of business if the employees received the proper education and would leave for better jobs. The Police Department wanted to see the Happy Feet Foot Spa to continue their operations in Palo Alto; however, their practices met the definition of massage and would need to comply with the same rules as other massage businesses in Palo Alto. MOTION: Council Member Klein moved, seconded by Council Member Espinosa that Staff return to the Policy and Services Committee with revised language for the recommended ordinance that excludes Reflexology. Council Member Klein stated that businesses were not always regulated. Regulations came about because of abuses in one form or another. One issue that resulted from licensing was people tried to move around boundaries to have lower-cost alternatives. Society did not allow people who were not appropriately state-certified to do things that were close to what licensed people did and resulted in disagreements. He said he would 13 be willing to exempt Happy Feet Foot Spa on the same basis as a Reflexology, but if their practice fitted the definition of massage they would need to comply with the same rules. He asked if Reflexology should have a licensing procedure. Mr. Larkin agreed. Council Member Espinosa said he agreed with Council Member Klein’s comments, but not for all the same reasons. He was in agreement of moving the item forward but did not agree that the City needed broad regulations around the field of massage. He felt that when the item was brought back to the full Council there would be Council Members that will raise the question of what was the problem that Staff was trying to resolve, why the proposed revision was needed, and how the Ordinance would solve those problems. He supported the Motion. Council Member Schmid suggested having a clear statement that identified the problem and how the regulations would deal with the problem. He said it would be helpful for Staff to return with more information regarding the ordinances in other cities. The City could do a comparison to what other municipalities were doing in regards to their ordinances. Ms. Tucker said in moving forward it might be helpful for Staff to come back with information regarding historical investigations and arrests around this type of behavior both locally as well as surrounding jurisdictions. The information provided would be done on general information and not individual cases. MOTION PASSED 3-0, Holman Absent City of Palo Alto (ID # 2708) Policy and Services Committee Staff Report Report Type: Meeting Date: 4/10/2012 April 10, 2012 Page 1 of 5 (ID # 2708) Summary Title: Massage Ordinance Follow-up Title: Review and Recommend Council Approval of Proposed Updated Massage Ordinance From: City Manager Lead Department: Police Recommendation Staff recommends that the Policy and Services Committee review the proposed updated Massage Ordinance and recommend approval of the ordinance to the City Council. Executive Summary The draft ordinance was presented to the Policy and Services Committee on February 14, 2012. Committee members requested additional information be prepared and changes be considered to the draft ordinance. Staff has reviewed the proposed ordinance and completed modifications taking into consideration the requests of the Committee and community members. Staff is also prepared to further discuss the modifications and address the questions brought forth at the previous meeting. Background At the February 14, 2012, Policy and Services Committee meeting staff presented proposed revisions to the existing Massage Ordinance, Palo Alto Municipal Code 4.54. Changes to the ordinance are necessitated by new state legislation that changed municipalities’ ability to regulate the practice of massage. Palo Alto’s existing ordinance is in violation of the new state law. Staff revised the ordinance to comply with state law and made additional changes to facilitate the ability of existing practitioners to remain in business. At the meeting, staff outlined the applicable state laws relating to massage regulation and described the input from 1 Packet Pg. 4 April 10, 2012 Page 2 of 5 (ID # 2708) the massage community from several previous meetings. Staff explained how that input was taken into account when drafting the ordinance and how the proposed fee structure was derived. After much discussion from staff and community members, the Policy and Services Committee recommended that modifications to the ordinance be considered and the following questions be addressed at a follow-up meeting on April 10, 2012: 1. Why is it necessary to make the proposed ordinance changes? 2. Why is it necessary to regulate massage at all in the City of Palo Alto? 3. Does the City of Palo Alto have problems with crimes related to massage? 4. Why is there a need for massage establishments to keep client contact records? 5. Are there ordinance language changes that can be made for the establishment requirements in the areas of hot/cold water, table coverings, and the need for safety boxes? 6. What do other cities do with massage and reflexology regulation? 7. What type of language can be added to the ordinance to cover reflexologists and reflexology-only businesses? Discussion Staff conducted additional research and is prepared to address the questions and changes requested by the Committee. 1) Why is it necessary to make the proposed ordinance changes? The current ordinance is out of compliance with state law changes that were made in September 2009. The City of Palo Alto has regulated massage since 1974 when questionable massage establishments were flourishing on El Camino Real. Most states within our country regulate massage to some 1 Packet Pg. 5 April 10, 2012 Page 3 of 5 (ID # 2708) degree and most cities within our’s and adjacent counties have massage ordinances. 2) Why is it necessary to regulate massage at all in the City of Palo Alto? Massage therapy involves full body touching, unlike any other therapy outside of the medical profession. Due to the nature of massage, the predominant types of crimes reported in the massage setting are sexual in nature. Studies have shown that sexual assault crimes are vastly underreported and are likely to happen to many females in a variety of settings, both public and private. The Police Department has received complaints of unwanted sexual contact from customers of massage businesses. In addition, during a community meeting, several massage practitioners told staff they have been victims of unwanted sexual contact by clients. Illegitimate massage businesses have a high likelihood of using victims of Human Trafficking in their business. As most municipalities in the Bay Area have some form of Massage regulation, there is a real risk of attracting illegitimate enterprises to an unregulated environment. 3) Does the City of Palo Alto have problems with crimes related to massage? Over the past 10 years, ten sexual assault-type crimes have been investigated at Palo Alto massage establishments. Research into the availability of adult sensual massage in Palo Alto revealed multiple websites advertizing business to persons in Palo Alto. The crime of prostitution does occur in Palo Alto but is difficult to prosecute without complicated police sting operations. Data from the Records Management System shows Police and Fire responded to 67 calls for service at the three largest massage establishments since the beginning of 2005. 4) Why is there a need for massage establishments to keep client contact records? The purpose of client contact records is to assist law enforcement in fact- finding when criminal allegations are made involving massage therapists. Most other municipalities require client contact reords to be kept. The 1 Packet Pg. 6 April 10, 2012 Page 4 of 5 (ID # 2708) information would only be available to law enforcement with a court order. Client records could aid in an investigation, either to prove or disprove allegations of misconduct against massage practitioners or clients. 5) Are there ordinance language changes that can be made for the establishment requirements in the areas of hot/cold water, table coverings, and the need for safety boxes? Staff reviewed the sections pertaining to hot and cold water availability in establishments and did not make any changes. Staff believes that the existing language allows for flexibility in how hot and cold water is provided. Staff reviewed the section pertaining to establishment table covering material and did not make any changes, because the existing language only requires that tables and table coverings be washable. Specific coverings are suggested, but not required. Staff reviewed the section of hand-drying options and added electric hand-drying devices as an allowable option. Staff reviewed the section requiring locked boxes for personal possessions and removed the requirement. Refer to Attachment A. 6) What do other cities do with massage and reflexology regulation? Many cities in Santa Clara and San Mateo Counties have massage ordinances. Please refer to Attachment B for a comparison of Palo Alto with 13 other cities. Only one city surveyed, Citrus Heights, included a reflexology exemption in its massage ordinance. 7. What type of language can be added to the ordinance to cover reflexologists and reflexology-only businesses? In response to requests from reflexologists who attended the February 14th Committee meeting, staff reviewed the draft ordinance and added a definition for “reflexology” based on definitions from other states that regulate reflexology. Additional language was added to the ordinance to exempt reflexologists when practicing in Palo Alto. 1 Packet Pg. 7 April 10, 2012 Page 5 of 5 (ID # 2708) Resource Impact The revised ordinance will have no fiscal impact on the City. The code enforcement officer who administers the massage permitting program will have additional duties and responsibilities. Timeline Staff recommends presenting the draft ordinance changes to City Council at the next available meeting following approval by the Policy and Services Committee. Attachments: -: Attachment A - PAMC 4.54 (PDF) -: Attachment B - Massage Spreadsheet 032612 (PDF) -: Attachment C - February P&S - Massage Ordinance Minutes -EXCERPT (PDF) Prepared By: April Wagner, Police Lieutenant Department Head: Dennis Burns, Police Chief City Manager Approval: ____________________________________ James Keene, City Manager 1 Packet Pg. 8 1 ***Proposed Massage Municipal Code*** 4.54.010 Purpose and intent. It is the purpose and intent of this chapter to provide for the orderly regulation of massage establishments and massage technicians, as defined in this chapter, in the interests of the public health, safety, and welfare by providing certain minimum building, sanitation and health standards for massage establishments, and by providing certain minimum qualifications for the operators of massage establishments and for massage technicians and massage technician trainees. Unless otherwise indicated, the requirements of this Code shall not apply to massage practitioners and therapists certified by the California Massage Therapy Council (CAMTC) or establishments in which the owners and all practitioners are CAMTC certified. 4.54.020 Definitions. (a) For the purpose of this chapter, unless the context clearly requires a different meaning, the words, terms and phrases set forth in this section shall have the meanings given them in this section: (1) "Massage” means any method of pressure on, or friction against, or stroking, kneading, rubbing, tapping, pounding, vibrating or stimulating the external parts of the human body with the hands or with the aid of any mechanical or electrical apparatus, or other appliances or devices, with or without such supplementary aids as rubbing alcohol, liniment, antiseptic, oil, powder, cream, lotion, ointment or other similar preparations. (2) “Massage technician" means any person who administers massages, baths or health treatments involving massage or baths as the principal functions to another person for any consideration whatsoever. (3) “Massage technician trainee” means a student who works in a massage establishment under the supervision and direction of a massage technician who has received a permit issued under the provisions of this chapter. (4) "Massage establishment" means any establishment with more than one massage technician having a fixed place of business where any, firm, association, partnership, corporation, joint venture or combination of individuals engages in, conducts, carries on or permits to be engaged in, conducted or carried on massages, baths or health treatments involving massage or baths, where massage is part of primary function of the business. (5) "Sole Proprietor Massage establishment" means any owner-operated establishment having a fixed place of business where an individual, carries on or permits to be engaged in, conducted or carried on massages, baths or health treatments involving massage or baths as the principal functions. 1.a Packet Pg. 9 -: A t t a c h m e n t A - P A M C 4 . 5 4 ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 2 (6) “Recognized school of massage” means any school or institution of learning which teaches the theory, ethics, practice, profession and work of massage. The student shall possess a diploma or certificate of graduation from such school or institution of learning following the successful completion of such course of study or learning, and which school has been approved pursuant to California Education Code Section 29025, or, if said school is not located in California, has complied with standards commensurate with those required in said Section 29025. Any school or institution of learning offering or allowing correspondence course credit not requiring actual attendance at class, or courses of a massage technician not approved by the California State Department of Education shall not be deemed a "recognized school of massage." (7) “Reflexology” Reflexology is the application of specific pressure by the use of the practitioner’s hands, thumb, and fingers to reflex points in the client’s hands, feet, or ears using alternating pressure, and such techniques as thumb walking, finger walking, hook and back up, and rotation on a reflex. (8) "Permit" means the permit to engage in the activities of a massage technician or a massage technician trainee as required by this chapter. (9) "Person" means any individual, firm, association, partnership, corporation, joint venture or combination of individuals. (10) “California Massage Therapy Council” (CAMTC) means the governing non- profit board that is authorized to evaluate qualifications of massage therapists and issue certification in the State of California. (11) “Accessory Technician Permit” A technician who is not a sole proprietorship may be eligible to receive an accessory technician permit. This permit will allow massage to be conducted within a business that is not a massage establishment, provided the following requirements are met: a. The technician must provide the police department with sufficient evidence to demonstrate that he or she is an independent contractor or an employee of the business. b. The business is not in the regular business of providing massage. c. The technician must obtain a massage technician permit as required by section 4.54.060 of this code. 4.54.030 Massage establishment permit required. (a) Except as otherwise provided, it is unlawful for any person to engage in, conduct or carry on, in or upon any premises within the city the operation of massage establishment without a permit obtained from the chief of police, as required by this chapter. A massage establishment permit shall be issued to any person who has complied 1.a Packet Pg. 10 -: A t t a c h m e n t A - P A M C 4 . 5 4 ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 3 with the requirements of Sections 4.54.050 and 4.54.110 of this chapter, and all other applicable provisions of this code or state law, as applicable; unless grounds for denial of such permit are found to exist. In addition to those set forth in Section 4.04.140, grounds for denial include: (1) The applicant made a material misstatement in the application for a permit; (2) The applicant has, within five years immediately preceding the date of the filing of the application, been convicted in a court of competent jurisdiction of an offense involving conduct which requires registration under California Penal Code Section 290, or any violations of Sections 311 through 311.7, 313.1, 314, 315, 316, 318 or 647(a), 647(b), 647(d), or 647(h) of the California Penal Code, or of any offense involving theft of property or violence; (3) That the operation of a massage establishment, as proposed by the applicant if permitted, would not comply with all applicable laws including, but not limited to, all city ordinances and regulations; (4) That the operation of the proposed massage establishment is likely to be injurious to the health, safety, welfare, and interest of the people of the city; (5) That the applicant is lacking in the background and qualifications to conduct a bona fide massage establishment; or (6) That the applicant has violated any provision of this chapter, or of any similar ordinance, law, rule or regulation of another public agency which regulates the operation of massage establishments. (7) That the CAMTC has revoked, suspended, or denied the applicant a permit. 4.54.040 Massage establishment permit application fee; renewal (a) Any application for a permit to operate a massage establishment shall be accompanied by a nonrefundable fee as set forth in the municipal fee schedule. The application fee shall be used to defray, in part, the costs of investigation and report, and is not made in lieu of any other fees or taxes required under this code. (b) A permit to operate a massage establishment shall be renewed annually. The renewal fee shall be as set forth in the municipal fee schedule. In addition, the massage technician must also submit valid identification, massage certification and a completed new permit application. 4.54.050 Application for massage establishment permit. (a) Any application for a permit to operate a massage establishment shall be made with the chief of police. Within thirty working days following receipt of a completed application and LiveScan results, the chief of police shall either issue the permit or mail a 1.a Packet Pg. 11 -: A t t a c h m e n t A - P A M C 4 . 5 4 ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 4 written statement of his reasons for denial thereof. The application shall set forth the exact nature of the massage bath or health treatment to be administered, the proposed place of business and facilities therefore, and the name and address of each applicant. The chief of police may request the applicant to allow fingerprints to be taken when needed for the purpose of establishing identification. In addition to the requirements of Chapter 4.04 and this section, any applicant shall furnish the following items: 1. The address of the proposed location 2. The previous addresses of applicant, if any, for a period of three years immediately prior to the date of the application and the dates of residence at each; 3. Written proof that the applicant is at least eighteen years of age; 4. Applicant's height, weight, color of eyes and hair; 5. Two recent passport photos 6. Business, occupation or employment history of the applicant for the three years immediately preceding the date of the application; 7. If the applicant is a corporation, the name of the corporation shall be set forth exactly as shown in its articles of incorporation, together with the names and residence addresses of each of its officers, directors, and each stockholder holding more than five percent of the stock of the corporation. If the applicant is a partnership, the application shall set forth the name and residence address of each of the partners, including limited partners. If one or more of the partners is a corporation, the provisions of this section pertaining to a corporate applicant shall apply; 8. The names and residence addresses of all persons currently employed or intended to be employed in the massage establishment, regardless of the nature of the employment, other than any person permitted pursuant to Section 4.54.060, along with the proposed or actual nature of the work performed or to be performed, and recent passport-size photographs, suitable to the police officer or designee processing the application, of each such employee. The chief of police may require such employee to allow fingerprints to be taken for the purpose of identification. Any applicant or permitee shall notify the city in writing of the names, addresses and nature of the work, of any new employees, within five days of such employment, and supply the photographs described in this subsection. Such new employees shall allow fingerprints to be taken for the purpose of identification upon request. "Employee" includes every owner, partner, manager, supervisor and worker, whether paid or not, who renders personal services of any nature in the operation of a massage establishment. 9. Such other information as may be deemed necessary by the chief of police. (b) Proof of malpractice insurance coverage or equivalent with a minimum of $100,000 coverage shall be required within 30 days of permit issuance. 4.54.060 Massage technician permit required. (a) It is unlawful for any person to act as a massage technician or a massage technician trainee unless such person holds a valid permit issued by the chief of police or 1.a Packet Pg. 12 -: A t t a c h m e n t A - P A M C 4 . 5 4 ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 5 a certification from the CAMTC. A massage technician permit shall be issued to any person who has fulfilled the requirements of Section 4.54.080, and all other provisions of this code or state law, as applicable; unless grounds for denial of such permit are found to exist. In addition to those set forth in Section 4.04.140, grounds for denial include: (1) The applicant made a material misstatement in the application for a permit; (2) The applicant has, within five years immediately preceding the date of the filing of the application, been convicted in a court of competent jurisdiction of an offense involving conduct which requires registration under California Penal Code Section 290, or any violations of Sections 311 through 311.7, 313.1, 314, 315, 316, 318 or 647(a), 647(b), 647(d), or 647(h) of the California Penal Code, or of any offense involving theft of property or violence; (3) That the issuance of the permit is likely to be injurious to the health, safety, welfare, and interest of the people of the city; (4) That the applicant is lacking in the background and qualifications to act as a massage technician; or (5) That the applicant has violated any provision of this chapter, or of any similar ordinance, law, rule or regulation of another public agency which regulates the operation of massage establishments or massage technicians. (6) That the CAMTC has revoked, suspended, or denied the applicant a permit. (b) A permit issued by the chief of police is not required for any massage technician and massage establishments if the owners and all technicians are massage practitioners or therapists, who are operating under a valid certificate issued by the Massage Therapist Organization (also known as the California Massage Therapy Council), per Chapter 10.5 (Commencing with Section 4600) of Division 2 of the California Business and Professions Code relating to massage therapy, provided however, that such person and business shall not be exempted from this Article if Chapter 10.5 is repealed. However notification of the CAMTC certification number must still be made to the police department where the CAMTC permit holder is working. 4.54.065 Education Requirements (a) General educational requirements. Except as indicated below, all applicants for a Massage Technician permit must meet the following educational standards to qualify for such permit, at the discretion of the Chief of Police: (1) Possession of a diploma or certificate of completion from a “recognized school of massage” which shows satisfactory completion of a resident course of study of a minimum of two hundred (200) verifiable hours on the theory, ethics, history, practice, and/or methods of massage therapy, including the study of anatomy, physiology and hygiene. 1.a Packet Pg. 13 -: A t t a c h m e n t A - P A M C 4 . 5 4 ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 6 (b) Exemptions from educational requirements. The following persons are exempt from the educational requirements set forth in subsection (a) above: (1) Holders of Massage Establishment business permits and Massage Technician business permits issued by the City before the effective date of this Chapter shall have a period of eighteen (18) months from the effective date of this Chapter to satisfy the educational requirements set forth in subsection (a) above. (2) Eighteen (18) months from the effective date of this ordinance, any therapist who does not have the required 200 hours of education will not be permitted to practice massage in Palo Alto. However, the chief of police may provide special consideration on a case-by-case basis to those massage technicians who can prove through documentation that they are currently enrolled in coursework associated with massage therapy and compliance of the 200 hour requirement is expected within a reasonable amount of time. 4.54.070 Massage technician application fee. Any application for a permit to act as a massage technician shall be accompanied by a nonrefundable fee as set forth in the municipal fee schedule. A massage technician permit shall be renewed annually. The renewal fee shall be as set forth in the municipal fee schedule. Any person who applies for a permit to operate a massage establishment and who desires to act as a massage technician within said establishment shall not be required to furnish the information set forth in Section 4.54.080. 4.54.080 Application for massage technician permit. (a) Any application for a permit to act as a massage technician shall be made with the chief of police. Within thirty working days following receipt of a completed application and LiveScan results, the chief of police shall either issue the permit, or mail a written statement of his reasons for denial thereof. If he takes neither action, the permit shall be deemed to be issued. The chief of police may request the applicant to furnish fingerprints when needed for the purpose of establishing identification. In addition to the requirements of Chapter 4.04, the applicant shall furnish the following items: (1) Name, residence address and telephone number; (2) Social security number and driver's license number, if any; (3) Applicant's weight, height, color of hair and eyes; (4) Two recent passport photos of applicant; (5) Written evidence that the applicant is at least eighteen years of age; 1.a Packet Pg. 14 -: A t t a c h m e n t A - P A M C 4 . 5 4 ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 7 (6) Business, occupation or employment of the applicant for the three years immediately preceding the date of application; (7) The name and address of the establishment where the applicant is to be employed, and the name of the owner or operator of the same. Any massage technician granted a permit pursuant to this section must report a change in massage establishment employment within five days of said change; (8) The name and address of the “recognized school of massage” attended, the date attended, and a copy of the diploma or certificate of graduation awarded to the applicant, or other documentation showing the applicant has completed 200 hours. 4.54.090 Massage technician trainee. (a) Any person desiring to obtain a permit to act as a massage technician trainee shall make an application to the chief of police. Within thirty working days following receipt of a completed application and having received LiveScan results, the chief of police shall either issue the permit, or mail a written statement of his reasons for denial thereof. If he takes neither action, the permit shall be deemed to be issued. A massage technician trainee permit shall be issued to any person who has fulfilled all the requirements of Section 4.54.080, except item (8), and who produces written proof that the applicant is currently enrolled in a “recognized school of massage”, as defined in this chapter; of the date the applicant enrolled in the recognized school of massage; and the scheduled date of graduation; and that the applicant has completed at least fifty hours of instruction and the date this instruction was completed; provided the applicant submits a letter signed by the owner or manager of a permitted massage establishment stating his immediate intent to employ the applicant to do massage as a trainee working under the direct supervision and control of a massage technician who has received a permit under the provisions of this chapter unless: (1) The applicant knowingly made a material misstatement in the application for the trainee permit; or (2) The applicant has, within five years immediately preceding the date of the filing of the application, been convicted in a court of competent jurisdiction of an offense involving conduct which requires registration under California Penal Code Section 290, or any violation of Sections 311 through 311.7, 313.1, 314, 315, 316, 318 or 647(a), 647(b), 647(d) or 647(h) of the California Penal Code or of any offense involving theft of property. No fee shall be required of a massage technician trainee applicant. The trainee must at all times comply with the laws relating to massage establishments, and the failure to comply may render the trainee ineligible to obtain a massage technician permit. Any massage technician trainee who, during the life of the trainee permit, completes the instruction required of a massage technician, shall be issued a massage technician 1.a Packet Pg. 15 -: A t t a c h m e n t A - P A M C 4 . 5 4 ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 8 permit upon payment of a massage technician application fee as set forth in the municipal fee schedule. 4.54.100 Appeal. In the event a permit or permit application has been denied, the applicant shall proceed pursuant to the appeal and hearing provision in Chapter 4.04. 4.54.110 Massage establishment facilities and operations requirements. (a) Except as otherwise indicated, all massage establishments, including those certified by CAMTC, shall comply with the following facilities and operations requirements: (1) Massage establishments shall comply with all code requirements. (2) A minimum of one toilet and wash basin shall be provided in every massage establishment. (3) Cabinets or other covered space shall be provided for the storage of clean linen. Approved receptacles shall be provided for the storage of all soiled linen and paper towels. (4) Minimum ventilation shall be provided in accordance with the building code of the city. To allow for adequate ventilation in cubicles, rooms and areas provided for patrons' use, which are not serviced directly by required window or mechanical systems of ventilation, partitions shall be constructed so that the height of partition does not exceed seventy-five percent of the floor-to-ceiling height of the area in which they are located. (5) All plumbing and electrical installations shall be installed under permit and inspection of the building inspection department, and such installations shall be installed in accordance with the Uniform Building Code and the Uniform Plumbing Code. (6) The walls in all rooms where water or steam baths are given shall have a washable, mold-resistant surface. (7) All lavatories or wash basins shall be provided with hot and cold running water, soap and single-service towels and/or hot-air hand dryers. (8) Every portion of a massage establishment, including appliances, apparatus and personnel, shall be kept clean and operated in a sanitary condition. (9) All massage establishments shall provide clean and sanitary towels, sheets and linens in sufficient quantity. Towels, sheets and linens shall not be used by more than one 1.a Packet Pg. 16 -: A t t a c h m e n t A - P A M C 4 . 5 4 ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 9 person. Reuse of such linen is prohibited unless the same has first been laundered. Heavy white paper may be substituted for sheets; provided, that such paper is used once for each person and then discarded into a sanitary receptacle. (10) All walls, ceilings, floors, pools, showers, bathtubs, steam rooms and all other physical facilities for the establishment must be in good repair and maintained in a clean and sanitary condition. Wet and dry heat rooms, steam or vapor rooms, or steam or vapor cabinets, shower compartments and toilet rooms shall be thoroughly cleaned and disinfected each day the business is in operation. Bathtubs shall be thoroughly cleaned and disinfected after each use. (11) Disinfecting agents and sterilizing equipment shall be provided for any instruments used in performing acts of massage and said instruments shall be disinfected and sterilized after each use. (12) Pads used on massage tables shall be covered with durable, washable plastic or other acceptable waterproof material. (13) (A) To protect patrons from potential health and sanitary hazards, all employees, massage technicians and massage technician trainees shall be clean and shall perform all services on the premises in full, clean outer garments. (B) Exception. A massage technician may perform services wearing no clothing or wearing less than full outer garments when teaching a class gathered to learn the theory, practice, or work of massage, and when said class consists in part of massage by the technician or members of the gathered class. The following items, (14) through (17), shall not apply to CAMTC certified establishments: (14) Each service offered, the price thereof, and the minimum length of time such service shall be performed shall be posted or shall be available in a conspicuous public location in each massage establishment. All letters and numbers shall be capitals, and not smaller than 14 point font. (15) (A) Massage establishments shall close and remain closed from eleven p.m. (11 p.m.) to nine a.m. (9:00 a.m.) (B) After one year of operation a massage establishment may be exempted from the hours restrictions of this section by the chief of police upon a written request which details the factual reasons supporting good cause for the exemption. The chief of police, in determining what constitutes good cause for this exemption from the hours restrictions, shall consider and weight the following factors: (i) The criteria outlined in Section 4.04.140 of Chapter 4.04; 1.a Packet Pg. 17 -: A t t a c h m e n t A - P A M C 4 . 5 4 ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 10 (ii) The criteria outlined in Section 4.54.030 of this chapter; (iii) The impact which the massage establishment has had on the health, safety, and welfare of the local community, including, but not limited to, parking and traffic congestion; (iv) The massage establishment's compliance or noncompliance with all federal, state, and local laws, including, but not limited to, this municipal code. If, upon review of those factors, the chief of police determines that good cause does exist for the requested exemption, the chief may then exempt the particular massage establishment from the hours restrictions of this section. However, in no event shall any massage establishment close later than two a.m. nor open earlier than six a.m. (C) The exemption from the hours restrictions of this section shall be subject to review and renewal annually at the same time as the renewal of the underlying permit and the same factual showing shall be made as that required for the initial exemption. The chief shall not grant an hours exemption unless said establishment has maintained the criteria specified in Section 4.54.110(a)(16)(B). (16) Every massage establishment and sole proprietor massage establishment shall keep written client records of the following: the date and hour of each service; the name, contact information and sex of each patron; the service provided, and the technician administering the service. A massage establishment is not required to provide client records to the City or any other enforcement agency without an order from a court of competent jurisdiction authorizing the release. (17) Off-premises Massage Prohibited. Except as otherwise provided, no person, , shall engage in any of the services permitted under this chapter at any place other than an establishment permitted pursuant to Chapter 4.54. 4.54.120 Inspection by officials. Any and all investigating officials of the city shall have the right to enter massage establishments from time to time during regular business hours to make reasonable inspections to observe and enforce compliance with building, fire, electrical, plumbing or health regulations. A warrant shall be obtained whenever required by law. 4.54.130 Business name. No person permitted to operate a massage establishment shall operate under any name or conduct business under any designation not specified in the permit. 4.54.140 Business location change. 1.a Packet Pg. 18 -: A t t a c h m e n t A - P A M C 4 . 5 4 ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 11 Upon a change of location of a massage establishment, an application to the chief of police shall be made, and such application shall be granted, provided all applicable provisions of this code are complied with and a change of location fee as set forth in the municipal fee schedule to defray, in part, the costs of investigation and report, has been paid to the city. 4.54.150 Sale or transfer of massage establishment interest. A sale or transfer of any interest in a massage establishment, which interest would be reported as required in this chapter upon application for a massage establishment permit, shall be reported to the chief of police within ten days of such sale or transfer. The chief of police shall investigate any person receiving any interest in a massage establishment as a result of such sale or transfer, and if such person satisfies the requirements relating to massage establishment permit applicants, the existing permit shall be endorsed to include such person. A fee as set forth in the municipal fee schedule shall be paid to the city for the investigation by the chief of police necessitated by each such sale or transfer. 4.54.160 Display of permits, permits. The owner or operator of a massage establishment shall display the massage establishment permit and the permit of each and every massage technician or massage technician trainee employed in the establishment in an open and conspicuous place on the premises or keep the permits together in a designated area, such that the permits are easily accessible for inspection. Passport-size photographs of permittees shall be affixed to the respective permits on display pursuant to this section. Home addresses of massage technicians and massage technician trainees need not be displayed. A fine for continued violation will be collected in an amount to be determined by resolution of the City Council. 4.54.170 Exemptions. The provisions of this Chapter shall not apply to the following classes of individuals while engaged in the performance of the duties of their respective professions: (1) Physicians, surgeons, chiropractors, osteopaths or physical therapists who are duly permitted to practice their respective professions in the state of California; (2) Nurses registered under the laws of the state of California; (3) Barbers and beauticians who are duly permitted under the laws of the state of California. (4) Reflexologists performing reflexology; however any reflexologist engaged in massage shall be required to comply with the provisions of this Chapter. 4.54.180 Grounds for denial, probation, and disciplinary action. 1.a Packet Pg. 19 -: A t t a c h m e n t A - P A M C 4 . 5 4 ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 12 In addition to any provisions of this chapter, the grounds set forth in Section 4.04.140 shall apply to permits and permits required under this chapter. Any circumstances constituting grounds for denial shall also constitute grounds for revocation, suspension or disciplinary action. 4.54.190 Hearing. Any permittee whose permit has been suspended or revoked shall proceed pursuant to the appeal and hearing provisions of Chapter 4.04. 4.54.200 Application to existing establishments and technicians. All operators of existing massage bath or health treatment establishments, and all persons engaged in giving massage, bathing and health treatments in the city upon the effective date of this chapter shall begin the application process and comply with all application and other requirements within sixty (60) days following the effective date of this chapter. 4.54.210 Application of other code provisions. Chapters 1.08 and 4.04 shall apply to the subject matter of this chapter in all respects, including those not specifically mentioned in this chapter. 1.a Packet Pg. 20 -: A t t a c h m e n t A - P A M C 4 . 5 4 ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) Massage Ordinance Comparison-April 2012 Agency Education Client Records Liability Insurance City Permit Option Exempt Foot Massage Reflexology Language Belmont 500 yes $500,000 yes no no Burlingame 500 yes $500,000 yes no no CAMTC 250 no no n/a no no Citrus Heights* 200 no $2,000,000 yes no yes-exempt reflexology Foster City 500 yes $500,000 yes no no Los Gatos 300 yes $100,000 yes no no Millbrae 500 yes $500,000 yes no uses term 'reflexology' but requires the same permit as massage Mountain View 100 no no yes no but they have 'noncertified' massage establishments no PA(Proposed) 200 yes $100,000 yes considering considering Redwood City CAMTC only CAMTC only CAMTC only CAMTC only CAMTC only CAMTC only San Carlos CAMTC only CAMTC only CAMTC only CAMTC only CAMTC only CAMTC only San Mateo 200 yes $100,000 practitioner $500,000 est.yes no no SMCSO CAMTC only CAMTC only CAMTC only CAMTC only CAMTC only CAMTC only Sunnyvale 100 yes $1,000,000 yes no no *only example of reflexology exemption 1. b Pa c k e t P g . 2 1 -: Attachment B - Massage Spreadsheet 032612 (2708 : Massage Ordinance Follow-up) 1 POLICY AND SERVICES COMMITTEE EXCERPT Regular Meeting February 14, 2012 Chairperson Price called the meeting to order at 6:04 p.m. in the Council Conference Room, 250 Hamilton Avenue, Palo Alto, California. Present: Espinosa, Klein, Schmid Absent: Holman (Chair) 1. Request Policy and Service Committee Review of the Proposed Ordinance Changes to Section 4.54 Massage Establishments. Assistant to the City Manager, Sheila Tucker stated she would be Staffing the Policy and Services Committee this year and looked forward to working with the Council and serving the Committee. Palo Alto Police Lieutenant, April Wagner stated that the City Attorney’s Office and Police Department Staff members had worked on the proposed Ordinance change for over a year. She said that the Palo Alto Municipal Code Ordinance 4.54 was enacted in 1974 to ensure lawful commerce of massage businesses in Palo Alto. The Palo Alto Police Department (PAPD) was responsible for enforcing the Ordinance. In 1996, state laws were anticipated to change the regulation of massage businesses. The City suspended enforcement on portions of the Ordinance that included, permit renewals, fee collections, and site inspections. Background checks and permitting of new massage applicants continued. The current Ordinance, as written, violated state law. The City had 191 City permitted or California Massage Therapy Council (CAMTC) certified massage therapists. Palo Alto had three permitted massage establishments; Water Course, Body Kneads, and the Massage Therapy Center. There were four establishments that should have been permitted under the current regulations. A City audit revealed two dozen unpermitted massage establishments in Palo Alto. The adoption of Senate Bill 731 (SB731) in September 2009 impacted the ability of municipalities to regulate the practice of massage and the CAMTC, a 1.c Packet Pg. 22 -: A t t a c h m e n t C - F e b r u a r y P & S - M a s s a g e O r d i n a n c e M i n u t e s - E X C E R P T ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 2 public, non-profit, benefit corporation was created. The corporation standardized and regulated the issuance of certificates to massage therapists and practitioners. Adoption of Assembly Bill 619 (AB619) in 2011, continued legislative work on portions of SB731 that were going to expire. Fifty percent of the massage therapists in Palo Alto were not state-certified. Many local municipalities revisited their ordinance since the passage of SB731. Staff reviewed local updated ordinances and worked with CAMTC Board Members in creating the document. An outreach program was conducted that involved citizens and therapists in a modification review of the Ordinance. Key objectives were to comply with State regulations, to insure qualified trained workers, exempted CAMTC certified practitioners or be permitted by the City, and allowed sole proprietorships in Palo Alto. The final draft change added language to exempt CAMTC holders from obtaining additional City massage permits, increased education from 100 to 200 hours from an accredited school, added sole proprietorship, required malpractice insurance, must display City permits as required by State law, and to maintain limited client records and made available by a court order. The new Ordinance eliminated special building and zoning requirements by State law and added the ability to deny a City permit to an applicant who had been denied, suspended, or had a CAMTC certificate revoked. The cost recovery fees for the program and Staff time were changed to be consistent with other cities. New establishment fees were $750, renewal fee $450; sole proprietorship fee $350, renewal fee $150; massage technician permit $300, renewal fee $150 for people that did not want to be state certified. A 2-year CAMTC certificate fee was $150, plus a $90 Livescan fingerprint or a criminal history check fee. Practitioners were required to have 250 hours and therapists 500 hours of education from an accredited school. CAMTC certified therapists not establishments. In conclusion, the proposed Ordinance would recognize and allow massage practice to occur in Palo Alto, allowed existing therapists and establishments to continue doing business, and allowed time for the therapists to comply with the requirements. Those who chose to patronize the establishments could feel confident that the therapist had met standardized qualifications. The Ordinance was consistent with other municipalities and state requirements. CAMTC Board Members found the draft Ordinance to be compliant with the state law. The passage of the Ordinance would allow the City to resume consistent enforcement on the massage businesses in Palo Alto. Mark Petersen-Perez, PaloAltoFreePress, spoke that massage therapists and practitioners had the right to deny law enforcement officials the ability to view the records unless they had a court order. The information was sensitive and confidential. 1.c Packet Pg. 23 -: A t t a c h m e n t C - F e b r u a r y P & S - M a s s a g e O r d i n a n c e M i n u t e s - E X C E R P T ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 3 Vice President Susan Mix, Reflexology Association of California (Association), stated that the Ordinance revision did not unfairly encompass Reflexology within the Massage Ordinance. She said the scope of practice of Reflexology was a non-invasive, natural system of stress reduction and worked on a fully clothed person and only shoes and socks were removed. Work was done from the ankle to the tips of the toes, from the wrists to the tips of the fingers and the outer ear. Reflexologists do not rub backs of a client. The average price charged per session in the Bay Area was $50 to $100. She raised concerns that there may be establishments that were misclassified in Palo Alto as Reflexology and were included in the Ordinance. She urged the City to adopt an exemption to the Massage Ordinance and to create a separate ordinance for professional Reflexologists to protect the public. She said the Association was willing to work with the PAPD to craft an exemption. Vicky Venter, Reflexologist, stated that Reflexology was not massage. The practice of Reflexology was to bring the body back to balance through relaxation through the nervous system and not the musculature system. She said Reflexology should not be governed under massage laws and should have its own laws to include setting educational standards to support public safety concerns. Christine Issel, Reflexologist and Representative of the American Reflexology Certification Board (ARCB), spoke regarding the regulation and licensing of Reflexology businesses. She said some of the requirements that needed to be considered for licensing were evidence of an ARCB certification, proof of membership from one of the professional organization such as the Reflexology Association of California, proof of practitioner liability insurance, Livescan fingerprints, a government issued identification and to require the disclosure form from the California Business and Professional Code. She suggested setting educational standards and fingerprint requirements with the license application to prevent blurring the law and operating under misleading premises. Beverly D’Urson stated that she patronized Happy Feet Foot Spa in Palo Alto. She opposed the revision to the Ordinance because it would take away the ability to choose certain healing techniques. She said the Happy Feet Foot Spa specialized in a certain massage technique and the revised ordinance would force their staff members to obtain a massage permit. Robert Hessen spoke in support of the Happy Feet Foot Spa and asked that new restrictions not be imposed on the establishment. He clarified that the operation functioned in a transparent, open atmosphere that did not encourage inappropriate behavior. He urged the decision-making members 1.c Packet Pg. 24 -: A t t a c h m e n t C - F e b r u a r y P & S - M a s s a g e O r d i n a n c e M i n u t e s - E X C E R P T ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 4 to examine the service that the Happy Feet Foot Spa offered before making a final decision. David Bertelsen, Happy Feet Foot Spa owner, raised concerns that the revision to the Ordinance would require staff members to be licensed under the new law. He urged the Council to reject the changes because anyone that practiced any form of massage would be grouped under one umbrella and would require unnecessary licensing. Ping Bertelsen, Happy Feet Foot Spa owner, stated neighboring cities did not require licensing for businesses similar to theirs and that Palo Alto law enforcement officers tried to convince them otherwise. He said the City of Mountain View had passed an ordinance specifically for their type of practice. A new category was created that exempted non-licensed massage practitioners from the standard massage licensing requirements. She said most of the south Bay Area establishments did not require licensing or fees that had the same type of business as theirs. Babs Mitchell stated that the Palo Alto Police Officers had placed restrictive requirements on various equipment and cleaning procedures in her establishment and stated the issues in question should be revisited. She felt that any establishment that practiced any type of massage should be under one ordinance. Dainuri Rott spoke in support of the Happy Feet Foot Spa. He said the services they offered were the only healthcare he used and were affordable. He asked the City to not enforce an ordinance that would force the establishment to discontinue their practice in Palo Alto. Robin Malmquist stated that the definition of the term “therapist”, “technician”, and “practitioner” used in the Ordinance did not coincide with the definition used by CAMTC. They should be the same, consistent, and easily understood. He asked that the Ordinance not be implemented until after all CAMTC applicants were certified. Applicants waiting to be certified were placed in a state of limbo and faced with having to make a choice to either follow the Ordinance route or CAMTC regulations. Council Member Klein asked if the state would occupy the massage field if the City did not move forward on the revision, and that the speakers at this evening’s meeting may or may not be governed by the state. Assistant City Attorney, Donald Larkin clarified that the state’s intent was to not occupy the field of massage if the City did not move forward on the proposed changes. The state’s attempt was to create a permitting system 1.c Packet Pg. 25 -: A t t a c h m e n t C - F e b r u a r y P & S - M a s s a g e O r d i n a n c e M i n u t e s - E X C E R P T ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 5 that would take people away from local regulations. He said the Council had three options: 1) to allow massage practice with a state permit enforced through an ordinance, which was similar to the ordinances in neighboring cities. 2) the City allow people to opt out of local regulations by getting state-certified, which the enacted ordinance change would do, and 3) to repeal the City’s Massage Ordinance and not require practitioners to obtain state certification and the option for no regulations. Council Member Klein restated that if the City did nothing, and the City repealed the City’s Ordinance, which was inconsistent with the state law, there would be no regulations at all. Mr. Larkin said practitioners would not be required to be state-certified and there would be no regulation at all. Council Member Klein asked how was this issue handled in unincorporated areas. Mr. Larkin said they were governed by a County ordinance. Council Member Klein said the state provided the City with a system where the City could opt in and state regulations would take over. Mr. Larkin said that was correct. The state preempted the City from regulating anyone certified by the state but did not preempt the City from anyone who was not state-certified. The state placed the responsibility on the City to regulate non-state certified practitioners. Council Member Klein asked if the City could adopt an ordinance that would require practitioners to pay an annual permit fee of $1 if the City felt it did not require any type of regulations. Mr. Larkin said the City could repeal the existing ordinance and not have any regulations or to have a level of regulation such as a $1 annual permit fee to track permitted practitioners. Council Member Klein asked Mr. Larkin if the City repealed the Ordinance and had no regulations, would there be no regulations set by the state. Mr. Larkin said that was correct. Council Member Klein asked if that had been done elsewhere. Mr. Larkin said not in the local area but could not confirm for statewide. 1.c Packet Pg. 26 -: A t t a c h m e n t C - F e b r u a r y P & S - M a s s a g e O r d i n a n c e M i n u t e s - E X C E R P T ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 6 Council Member Klein said there was an issue in the 1970’s and asked if the City had encountered issues in the field of massage within the last 30-years. He asked if this discussion would be taking place if the state had not enacted their law. Code Enforcement Officer, Heather Johnson said possibly. She stated that the CMTC was a voluntary, non-profit, program the City could opt into. The state would not take precedence if Palo Alto did not have a set of regulations. People with no formal training in the field of massage would be able to practice in Palo Alto. She said she could not identify cities that did not have ordinance regulations because the focus was on cities that had and studied their municipal code. Council Member Klein said the City had an Ordinance for 15 years that was in a state of suspense and asked if there had been any problems. Ms. Wagner said no. She said in an attempt to be a little more compliant to the changing regulations only portions of the existing Ordinance were suspended. The City continued to allow new practitioners to practice and did background checks. No fees were charged, and no site inspections were made. Council Member Klein said the massage field had its share of problems with prostitution and asked if there had been problems along those lines or in the practice of massage in Palo Alto in the past 30 years. Ms. Johnson said there had been problems. She said 99.9 percent of the therapists did a great job and provided a good service but a small portion did not. Council Member Klein asked about the Reflexology issue. Ms. Johnson said adopting an ordinance to accommodate Reflexology seemed reasonable. Businesses that were discussed at this evening’s meeting did not fall into the category of Reflexology. The Happy Feet Foot Spa practice fell into the description of massage. Their technique was not limited to touching hands, feet, and ears as regulations defined by the Reflexology Association of California. The issue of Reflexology was not addressed because patrons had described the service they received from the Happy Feet Foot Spa fit the definition of massage. Council Member Klein asked about the situation in the Cities of Mountain View and Los Altos. 1.c Packet Pg. 27 -: A t t a c h m e n t C - F e b r u a r y P & S - M a s s a g e O r d i n a n c e M i n u t e s - E X C E R P T ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 7 Ms. Wagner stated that the City of Mountain View accommodated a non- certified massage establishment. The establishment and therapist paid fees but was exempted from education requirements. Council Member Klein said his understanding was that there was intent to exempt sole proprietorship. Ms. Wagner said that was incorrect. She said the definition of a sole proprietor was a single person, massage establishment. It basically was a person practicing massage in a rented room in an office space. Charlie Cullen, Deputy Director of Technical Services, clarified that was prohibited under the old Ordinance and a new category was created in order to certify sole proprietors. The City of Mountain View’s situation was an exception to the rule and had a special category that most other municipalities did not support in their ordinance. The City of Los Altos was on tract to require CMATC certification only and not provide any another method to qualify under their local ordinance. Council Member Klein said it was still unclear what was being accomplished for a sole proprietorship massage establishments. Ms. Wagner said in the effort to try to identify massage therapists they were not aware of that were practicing in Palo Alto, they discovered a large number of individuals who had their own personal offices, their own businesses that were single individuals, renting spaces and had clients. The PAPD deemed Palo Alto as a city that should be pro-business. They felt it was inappropriate to have 75 percent of the therapist not be state-certified. This was an incentive to work with these individuals to allow them to run a successful business, which meant having to change current regulations and to allow single persons to have sole proprietorship establishments. Council Member Klein asked if that individual was being regulated. Ms. Wagner said yes, if they were not state-certified. Council Member Klein said he was having trouble with the language as written in the Municipal Code. He said 4.54.020 defined a massage establishment as any establishment with more than one massage technician. Ms. Wagner said that was correct. It was a single person acting as a business owner and a massage technician. 1.c Packet Pg. 28 -: A t t a c h m e n t C - F e b r u a r y P & S - M a s s a g e O r d i n a n c e M i n u t e s - E X C E R P T ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 8 Council Member Klein said his interpretation of the code was that this was one individual not subjected to the City’s regulation. Mr. Larkin said the individual was not subjected to the establishment regulations but was subjected to the individual permit regulations. Council Member Klein asked Mr. Larkin where that statement was located and if it referred to the statement “the technician permit would be required.” Mr. Larkin said yes. Council Member Schmid stated the document did not state this was a Police Department matter and needed clarification on why a law enforcement officer was representing the City. Ms. Wagner stated that a Code Enforcement Officer’s position was charged with enforcing this statute. The position assumed the permitting of taxicabs, alarms, massage establishments, solicitors, but she was not sure how far back the history was of the Code Enforcement Officer assuming the responsibility of permitting. Council Member Schmid said Council Member Klein mentioned there were problems in the field of massage in the 70’s and asked if there had been any problems since. He raised concerns that the Police Department was occupied with critical activities and asked if the field of massage was one of them. Ms. Wagner said 99.9 percent of the time there were none but could be a pervasive problem in communities. She confirmed that Palo Alto had its share of illicit activities but no recent incidents had been identified in massage parlors. Passage of the Ordinance would bring the issue to state law and help the Code Enforcement Officer oversee that the practice of massage functioned accordingly in the community. Council Member Schmid said his contact with the Police was through the Police Blotter in the newspaper and had assumed that every police call was listed. He said he did not recall seeing incidents or complaints that pertained to illicit sexual activities. Ms. Wagner confirmed they had gotten calls and some that required special investigation procedures but none were in massage establishments. Council Member Schmid said it would be helpful and important to have a statement that identified these issues in terms of the number of past and 1.c Packet Pg. 29 -: A t t a c h m e n t C - F e b r u a r y P & S - M a s s a g e O r d i n a n c e M i n u t e s - E X C E R P T ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 9 present complaints along with the number of incidents that occurred in neighboring cities. The information would identify that these issues were activities handled by the Police Department and not by another City department. Mr. Cullen clarified that historically the issues that Council Member Klein referred to in the 70’s became an enforcement issue for the Police Department. The enforcement permitting process fell under the Police Department’s jurisdiction when the Ordinance was enacted and remained with the Police Department. The Police Department’s Code Enforcement Officer was a non-sworn, civilian, officer who enforced a number of other ordinances and in charge of permitting, ensured that practitioners complied with the rules and the Ordinance. The Code Enforcement Office could initiate an investigation if she saw an illicit activity occurring but the criminal aspect would be investigated by a sworn officer. Council Member Schmid raised concerns that the CAMTC was a non-profit organization that provided education and certification and that a CAMTC permitted practitioner would be outside the local code enforcement. He asked if that implied that a CAMTC permitted individual was not in danger of illicit activity. Ms. Wagner clarified that the CAMTC had a rigorous application process and had the ability to suspend, revoke, or deny a permit based on a complaint. CAMTC thresholds of complaints were low. Their investigation process was extensive and a practitioner under investigation would face heavy scrutiny. Mr. Larkin clarified that the CAMTC was a non-profit organization, a public benefit corporation created by the state government and a quasi- governmental agency similar to the state bar for attorneys. It was not an independent, non-profit without government functions. Council Member Schmid raised concerns regarding establishments to maintain a logbook. Ms. Wagner clarified the logbook was similar to a hotel registry. Law enforcement officers could review the information but would require a court order. The method was to assist both in the defense or prosecution of a therapist working at a business. Council Member Schmid asked if other professions such as physical therapist or personal trainers were asked to maintain a logbook. 1.c Packet Pg. 30 -: A t t a c h m e n t C - F e b r u a r y P & S - M a s s a g e O r d i n a n c e M i n u t e s - E X C E R P T ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 10 Ms. Wagner said they did kept records that contained contact information, such as name, address, phone number and services performed. Hair dressers often maintained a logbook for the purpose of sending out mailers. Council Member Schmid stated that would be different than a logbook that contained specific dates, times, and detailed descriptions of services received. Mr. Cullen clarified that the Police Department was sensitive to the issues involved. Customer records in massage establishments would require a subpoena in order for a law enforcement officer to view the records. The process would be similar to any other business that faced a criminal investigation. He wanted to make clear that the subpoena requirement was added to the regulations. Council Member Schmid said the definition of a massage was touching of the exterior space of the body and could include several areas. He felt the definition of massage was too broad. Reflexology stated they did not have the same temptations that led to past abuses. He asked what definition did the Police Department use and if they felt it was too broad. Ms. Wagner stated the practice of massage involved the manipulation or applying pressure to the body. There was the threat of possible injury to the body during manipulation as well as criminal or sexual aspect that could occur. The definition of massage needed to be broad. The intent of the Ordinance was not to focus on the Reflexologist’s scope of work limited to the hands, feet, and ears but work that extended to the manipulation, applying pressure, and touching all over the body. Council Member Schmid noted that one of the speakers stated that half of the states make a distinction between massage therapy and Reflexology. He said the definition was not a standard definition but an interpretation and broader than others used. Council Member Espinosa stated what the Committee was hearing were issues of trying to determine a problem and how to fix it. There was the issue of illicit activities in Palo Alto and for the Council to support the Police Department to quickly address the situation. The other was how the proposed Ordinance change would impact the massage businesses in terms of people getting healthcare services, training requirements for employees, and wanting to protect the public. The impacts would affect the massage business, entrepreneurs, and small businesses without a real good cause and change an industry on services they were able to provide in the 1.c Packet Pg. 31 -: A t t a c h m e n t C - F e b r u a r y P & S - M a s s a g e O r d i n a n c e M i n u t e s - E X C E R P T ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 11 community. He asked what Staff’s thoughts were on his comments and if there were concerns in respect to the development of the Ordinance. Ms. Wagner said everyone’s needs were considered in developing the Ordinance. She said that the category “sole proprietorship” was created to allow businesses to occur, to define massage and that all establishments played by the same rules. Additionally, state-certified people would be exempted. Council Member Espinosa asked if information could be collected regarding illicit activities, not on individual cases, if the Committee wanted to get a better understanding if the problem was significant enough to move forward to consider other impacts. Ms. Wagner explained that the nature of illicit activities occurred behind closed doors and did not know if accurate data could be obtained on the number of illicit activities that occurred. Council Member Espinosa asked if full cost recovery was the goal of the price point. Mr. Cullen said cost recovery probably did not cover Staff’s time spent in the implementation and moving forward on permitting. Council Member Espinosa asked Staff what the timeline would be to carve out the Reflexology portion and to come back to the Committee to address the issue. Ms. Wagner said it could take a few months. There were establishments that referred to themselves as Reflexology and performed other services. She did not think it would be necessary to develop an Ordinance solely for Reflexology. She said a definition could be added to the Ordinance to exempt Reflexology. Council Member Espinosa said the speakers touched on issues the Police Department felt that needed stricter regulations such as the method used to wash down equipment, separate faucets to accommodate hot and cold running water, terminology issues, and implementation dates. He asked if Staff could respond to these issues, was Staff in disagreement, or if further discussions needed to occur. Ms. Wagner said the intent was to apply regulations governed by state laws for municipalities to enforce health and safety rules that applied to massage businesses. She said the terminology issues could be revisited to see if a 1.c Packet Pg. 32 -: A t t a c h m e n t C - F e b r u a r y P & S - M a s s a g e O r d i n a n c e M i n u t e s - E X C E R P T ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 12 better term could be used to define “technicians”, “practitioners” and therapists”. Mr. Larkin stated that Staff attempted to answer many of the questions during individual meetings with the practitioners and Staff would revisit comments that were overlooked. Council Member Schmid said Reflexology was an alternative type of practice and had a separate form of certification process. He felt that the Happy Feet Foot Spa was not Reflexology or the standard therapy and appeared to be innocuous. He said there was a spectrum of activities that seemed outside the boundaries that was focused on in reviewing the definitions. He suggested looking at how neighboring jurisdictions dealt with their ordinances, not just in a general sense, but what were the differences and how they might apply to what the City was dealing with. Ms. Wagner said they had reviewed other city ordinances and found there were different distinctions. She disagreed with the statement that the situation of having clothes on in an open room was different from clothes off in a closed room. She felt because there was a layer of clothing between the person’s hands and the body they were working on that through pressure and manipulation did not mean a criminal act could not occur. Happy Feet Foot Spa practiced Reflexology but the major portion of their service was full body massage. She understood why people appreciated the low-cost massage option. The intent of the Police Department was not to put anyone out of business. The Happy Feet Foot Spa proprietors were offered solutions to comply with the proposed Ordinance and time for their employees to get proper training. Mr. Bertelsen’s response was that Happy Feet Foot Spa would be put out of business if the employees received the proper education and would leave for better jobs. The Police Department wanted to see the Happy Feet Foot Spa to continue their operations in Palo Alto; however, their practices met the definition of massage and would need to comply with the same rules as other massage businesses in Palo Alto. MOTION: Council Member Klein moved, seconded by Council Member Espinosa that Staff return to the Policy and Services Committee with revised language for the recommended ordinance that excludes Reflexology. Council Member Klein stated that businesses were not always regulated. Regulations came about because of abuses in one form or another. One issue that resulted from licensing was people tried to move around boundaries to have lower-cost alternatives. Society did not allow people who were not appropriately state-certified to do things that were close to what licensed people did and resulted in disagreements. He said he would 1.c Packet Pg. 33 -: A t t a c h m e n t C - F e b r u a r y P & S - M a s s a g e O r d i n a n c e M i n u t e s - E X C E R P T ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 13 be willing to exempt Happy Feet Foot Spa on the same basis as a Reflexology, but if their practice fitted the definition of massage they would need to comply with the same rules. He asked if Reflexology should have a licensing procedure. Mr. Larkin agreed. Council Member Espinosa said he agreed with Council Member Klein’s comments, but not for all the same reasons. He was in agreement of moving the item forward but did not agree that the City needed broad regulations around the field of massage. He felt that when the item was brought back to the full Council there would be Council Members that will raise the question of what was the problem that Staff was trying to resolve, why the proposed revision was needed, and how the Ordinance would solve those problems. He supported the Motion. Council Member Schmid suggested having a clear statement that identified the problem and how the regulations would deal with the problem. He said it would be helpful for Staff to return with more information regarding the ordinances in other cities. The City could do a comparison to what other municipalities were doing in regards to their ordinances. Ms. Tucker said in moving forward it might be helpful for Staff to come back with information regarding historical investigations and arrests around this type of behavior both locally as well as surrounding jurisdictions. The information provided would be done on general information and not individual cases. MOTION PASSED 3-0, Holman Absent 1.c Packet Pg. 34 -: A t t a c h m e n t C - F e b r u a r y P & S - M a s s a g e O r d i n a n c e M i n u t e s - E X C E R P T ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) FILENAME 1 POLICY AND SERVICES COMMITTEE Draft Action Minutes Regular Meeting April 10, 2011 1. Review and Recommend Council Approval of Proposed Updated Massage Ordinance. MOTION: Council Member Klien moved, seconded by Council Member Espinosa, that the Policy and Services Committee refer the Massage Ordinance back to Staff to revise a) eliminate records requirement, b) include exemption for non-certified massage practicioners, and c) review the remaining language to draft as light of an ordinance as possible. MOTION PASSED 4-0. 2. Discussion and Recommendation of Council Priority Setting Process MOTION: Council Member Klein moved, seconded by Council Member Schmid to place a context statement prior to the definition of a priority, to define a priority as an issue or topic which will receive particular, unusual, and significant attention during the year. The only items to be considered for priorities shall be those proposed in writing by Staff a week prior to the annual Council Retreat, or by one Council Member in time for inclusion in the packet for the annual Council Retreat. To have a three year time limit on priorities. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER the Policy and Services Committee will be the focus of establishing the process of integrating input from all Council Members on an equal basis and will start the process three months before the January sesison AMENDMENT TO MOTION: Council Member Espinosa moved, seconded by Chair Holman to include a goal of no more than three priorities in a year. FILENAME 2 AMENDMENT PASSED: 3-1, Klein no MOTION RESTATED: Council Member Klein moved, seconded by Council Member Schmid to place a context statement prior to the definition of a priority, to define a priority as an issue or topic which will receive particular, unusual, and significant attention during the year. There should be no more than three priorities in a year. The Policy and Services Committee would be the focus of establishing the process of integrating input from all Council Members on an equal basis and will start the process three months before the January Retreat. There will be a fixed list of topics to consider at the Retreat. There will be a goal of no more than three priorities per year. To have a three year time limit on priorities. Staff will prepare this proceedure and return to the Committee prior to returning to the Council. MOTION AS AMENDED PASSED: 4-0 3. Discussion on Policy and Services Committee Workplan Prioritization and Process for Handling New Business No Action ADJOURNMENT: Meeting adjourned at 9:43 p.m. City of Palo Alto (ID # 2906) Policy and Services Committee Staff Report Report Type: Meeting Date: 6/12/2012 June 12, 2012 Page 1 of 2 (ID # 2906) Summary Title: Massage Ordinance Title: Review and Recommend Approval of Massage Ordinance From: City Manager Lead Department: Police Recommendation Staff recommends that the Policy & Services Committee review the revised Massage Ordinance and recommend approval to the City Council. Background The Policy & Services Committee reviewed staff’s recommendations for an updated Massage Ordinance on February 14, 2012 and April 10, 2012, and provided direction to staff to modify various provisions of the proposed Ordinance. Attachment C provides the City Manager’s Report and minutes from the February 14, 2012 Committee meeting. Attachment D provides the City Manager’s Report and minutes from the April 10, 2012 Committee meeting. In response to the Committee’s direction on April 10th, staff eliminated the logbook requirement for the establishments, included exemptions for non-certified massage practitioners, and reviewed the proposed ordinance for any areas that may be modified to be less-restrictive. Discussion Staff revised the draft Ordinance as follows: Eliminated the logbook requirement for establishments. Added the therapist classification of Non-certified therapist (exempt from the education requirement). Added the establishment classification of Non-certified establishment (exempts employees of establishment from education requirement). This classification would require non-certified therapists to undergo a background check. The revised Massage Ordinance may be found in Attachment A. Analysis of Potentially Less Restrictive Ordinance The Committee directed staff to review the Ordinance to draft as light of an Ordinance as possible. The proposed Ordinance may be made less restrictive by 1) reducing the educational June 12, 2012 Page 2 of 2 (ID # 2906) requirements for CPA Certification and/or, 2) decreasing or eliminating the requirement of liability insurance. Attachment B provides a comparison of key provisions of Palo Alto’s current and proposed Ordinance with other local municipalities. The Committee may also consider recommending that the City Council eliminate the City’s therapist certification process all together and require only CAMTC (State) certification. This option removes the City from most of the regulation, oversight, and code enforcement requirements of massage establishments and therapists. If this option is considered, staff would recommend that a background check remain for non-certified practitioners for some public protection. Existing practitioners may be given a grace period to come into compliance with CAMTC certification. The City may also choose to include a non-certified classification for clothed massage in an open area. This option would require a significant re-draft of the existing ordinance. Attachments: Attachment A - Proposed Massage Ordinance 061212 (PDF) Attachment B - Other Cities' Comparison (PDF) Attachment C - CMR & Minutes 02-14-12 (PDF) Attachment D - CMR & Minutes 04-10-12 (PDF) Prepared By: April Wagner, Police Lieutenant Department Head: Dennis Burns, Police Chief City Manager Approval: ____________________________________ James Keene, City Manager ***Proposed Massage Municipal Code*** 4.54.010 Purpose and intent. It is the purpose and intent of this chapter to provide for the orderly regulation of massage establishments and massage technicians, as defined in this chapter, in the interests of the public health, safety, and welfare by providing certain minimum building, sanitation and health standards for massage establishments, and by providing certain minimum qualifications -for the operators of massage establishments and for massage technicians and massage technician trainees. Unless otherwise indicated, the requirements of this Code shall not apply to massage practitioners and therapists certified by the California Massage Therapy Council (CAMTC) or establishments in which all practitioners are CAMTC certified. 4.54.020 Definitions. (a) For the purpose of this chapter, unless the context clearly requires a different meaning, the words, terms and phrases set forth in this section shall have the meanings given them in this section: (1) "Massage" means any method of pressure on, or friction against, or stroking, kneading, rubbing, tapping, pounding, vibrating or stimulating the external paris of the f human body with the hands or with the aid of any mechanieal orerect:rieal app::rrams;' or other appliances or devices, with or without such supplementary aids as rubbing alcohol, liniment, antiseptic, oil, powder, cream, lotion, ointment or other similar preparations. (2) "Massage technician" means any person who administers massages, baths or health treatments involving massage or baths as the principal functions to another person for any consideration whatsoever. (3) "Massage technician trainee" means a student who works in a massage establishment under the supervision and direction of a massage technician who has received a permit issued under the provisions of this chapter. (4) "Massage establishment" means any establishment with more than one massage technician having a fixed place of business where any firm, association, partnership, corporation, joint venture or combiriation of individuals engages in, conducts, carries on or permits to be engaged in, conducted or carried on massages, baths or health treatments involving massage or baths, where massage is part of primary function of the business. (5) "Sole·Proprietor Massage establishment" means any owner-operated establishment having a fixed place of business where an individual, carries on or permits to be engaged in, conducted or carried on massages, baths or health treatments involving massage or baths as the principal functions. 1 (6) "Recognized school of massage" means any school or institution of learning which teaches the theory; ethics, practice, profession and work of massage. The student shall possess a diploma or certificate of graduation from such school or institution of learning following the successful completion of such course of study or learning, and which school has been approved pursuant to California Education Code Section 29025, Of? if said school is not located in California, has complied with standards commensurate with those required in said Section 29025. Any school or institution oflearning offering or allowing correspondence course credit not requiring actual attendance at class, or courses of a massage technician not approved by the California State Department of Education shall not be deemed a "recognized school of massage." (7) "Reflexology" Reflexology is the application of specific pressure by the use of the practitioner's hands, thumb, and fingers to reflex points in the client's hands, feet, or ears using alternating pressure, and such techniques as thumb walking, finger walking, hook and back up, and rotation on a reflex. (8) "Permit" means the permit to engage in the activities of a massage technician or a massage technician trainee as required by this chapter. (9) "Person" means any individual, firm, association, partnership, corporation, joint venture o~ combination of individuals. (10) "California Massage Therapy Council" (CAMTC) means the governing non- profit board that is authorized to evaluate qualifications of massage therapists and issue certification in the State of California. (11) "Accessory Technician Permit" A technician who is not a sole proprietorship may be eligible to receive an accessory technician permit. This permit will allow massage to be conducted within a business that is not a massage establishment, provided the following requirements are met: a. The technician must provide the police department with sufficient evidence to demonstrate that he or she is an independent contractor or an employee of the business. b. The business is not in the regular business of providing massage. c. The technician must obtain a massage technician permit as required by section 4.54.060 of this code. (12) "Noncertified massage practitioner" A massage practitioner who performs massage in an open and common room without partitions, and the individual in receipt of the massage remains fully clothed and does not disrobe except below the knee. A noncertified practitioner must: (1) apply for and obtain a noncertified practitioner 2 certificate; and (2) post the noncertified practitioner certificate in a conspicuous place in such a manner that it can be easily seen by persons entering the establishment. (l3) "Noncertified massage establishment permit" A massage establishment permit issued to an establishment at which all the massage practitioners are noncertified practitioners. The same requirements applicable to massage establishment permits are applicable to noncertified massage establishment permits. 4.54.030 Massage establishment permit required. (a) Except as otherwise provided, it is unlawful for any person to engage in, conduct or carryon, in or upon any premises within the city the operation of massage establishment without a permit obtained from the chief of police, as required by this chapter. All requirements applicable to a massage establishment permit are applicable to a noncertified massage establishment permit. A massage establishment permit shall be issued to any person who has complied with the requirements of Sections 4.S4.050 and 4.54.110 of this chapter, and all other applicable provisions of this code or state law, as applicable; unless grounds for denial of such permit are found to exist. In addition to those set forth in Section 4.04.140, grounds for denial include: (1) The applicant made a material misstatement in the application for a permit; (2) The applicant has, within five years immediately preceding the date of the filing of the application, been convicted in a court of competent jurisdiction of an offense involving conduct which requires registration under California Penal Code Section 290, or any violations of Sections 311 through 311.7, 313.l, 314, 315, 316, 318 or 647(a), 647(b), 647(d), or 647(h) of the California Penal Code, or of any offense involving theft of property or violence; (3) That the operation of a massage establishment, as proposed by the applicant if permitted, would not comply with all applicable laws including, but not limited to, all city ordinances and regulations; (4) That the operation of the proposed massage establishment is likely to be injurious to the health, safety, welfare, and interest of the people ofthe city; (5) That the applicant is lacking in the background and qualifications to conduct a bona fide massage establishment; or (6) That the applicant has violated any provision of this chapter, or of any similar ordinance, law, rule or regulation of another public agency which regulates the operation of massage establishrllents. (7) That the CAMTC has revoked, suspended, or denied the applicant a permit. 3 4.54.040 Massage establishment permit application fee; renewal (a) Any application for a pennit to operate a massage establishinent shall be accompanied by a nonrefundable fee as set forth in the municipal fee schedule. The application fee shall be used to defray, in part, the costs of investigation and report, and is not made in lieu of any other fees or taxes required under this code. (b) A permit to operate a massage establishment shall be renewed annually. The renewal fee shall be as set forth in the municipal fee schedule. In addition, the massage technician must also submit valid identification, massage certification and a completed new permit application. 4.54.050 Application for massage establishment permit. (a) Any application for a pennit to operate a massage establishment shall be made with the chief of police. Within thirty working days following receipt of a completed application and LiveScan results, the chief of police shall either issue the pennit or mail a written statement of his reasons for denial thereof. The application shall set forth the exact nature of the massage bath or health treatment to be administered, the proposed place of business and facilities therefore, and the name and address of each appli9ant. The chief of police may request the applicant to allow fingerprints to be taken when needed for the purpose of establishing identification. In addition to the requirements of Chapter 1.04 and this section, any applicant shall furnish the following items: 1. The address of the proposed location 2. The previous addresses of applicant, if any, for a period of three years immediately prior to the date of the application and the dates of residence at each; 3. Written proof that the applicant is at least eighteen years of age; 4. Applicant's height, weight, color of eyes and hair; 5. Two recent passport photos 6. Business, occupation or employment history of the applicant for the three years immediately preceding the date of the application; 7. If the applicant is a corporation, the name of the corporation shall be set forth exactly as shown in its articles of incorporation, together with the names and residence addresses of each of its officers, directors, and each stockholder holding more than five percent of the stock of the corporation. If the applicant is a partnership, the application shall set forth the name and residence address of each of the partners, including limited partners. If one or more of the partners is a corporation, the provisions of this section pertaining to a corporate applicant shall apply; 8. The names and residence addresses of all persons currently employed or intended to be employed in the massage establishment, regardless of the nature of the employment, other than any person permitted pursuant to Section 4.54.060, along with the proposed or actual nature of the work perfonned or to be perfonned, and recent passport-size photographs, suitable to the police officer or designee processing the application, of each such employee. The chief of police may 4 require such employee to allow fingerprints to be taken for the purpose of identification. Any applicant or permitee shall notify the city in writing of the names, addresses and nature of the work, of any new employees, within five days of such employment, and supply the photographs described in this subsection. Such new employees shall allow fingerprints to be taken for the purpose of identification upon request. Such other information as may be deemed necessary by the chief of police. (b) Proof of malpractice insurance coverage or equivalent with a minimum of $100,000 coverage shall be required within 30 days of permit issuance. 4.54.060 Massage technician permit required. (a) It is unlawful for any person to act as a massage technician or a massage technician trainee unless such person holds a valid permit issued by the chief of police or a certification from the CAMTC. A massage technician permit shall be issued to any person who has fulfilled the requirements of Section 1.54.080, and all other provisions of this code or state law, as applicable; unless grounds for denial of such permit are found to exist. In addition to those set forth in Section 4.04.140, grounds for denial include: (1) The applicant made a material misstatement in the application for a permit; (2) The applicant has, within five years immediately preceding the date ofthe filing of the application, been convicted in a court of competent jurisdiction of an offense involving conduct which requires registration under California Penal Code Section: 290, or any violations of Sections 311 through 311.7,313.1,314,315,316,318 or 647(a), 647(b), 647(d), or 647(h) ofthe California Penal Code, or of any offense involving theft of property or violence; (3) That the issuance of the permit is likely to be injurious to the health, safety, welfare, and interest of the people of the city; (4) That the applicant is lacking in the background and qualifications to act as a massage technician; or (5) That the applicant has violated any provision of this chapter, or of any similar ordinance, law, rule or regulation of another public agency which regulates the operation of massage establishments or massage technicians. (6) That the CAMTC has revoked, suspended, or denied the applicant a permit. (b) A permit issued by the chief of police is not required for any massage technician and massage establishments if all technicians are massage practitioners or therapists, who are operating under a valid certificate issued by the Massage Therapist Organization (also known as the California Massage Therapy Council), per Chapter 10.5 (Commencing with Section 4600) of Division 2 of the California Business and Professions Code relating to massage therapy, provided however, that such person and business shall not be exempted ·5 from this Article if Chapter 10.5 is repealed. However notification of the CAMTC certification number must still be made to the police department where the CAMTC permit holder is working. 4.54.065 Education Requirements (a) General educational requirements. Except as indicated below, all applicants for a Massage Technician permit must meet the following educational standards to qualify for such permit, at the discretion of the Chief of Police: (1) Possession of a diploma or certificate of completion from a "recognized school of massage" which shows satisfactory completion of a resident course of study of a minimum oftwo hundred (200) verifiable hours on the theory, ethics, history, practice, andlormethods of massage therapy, including the study of anatomy, physiology and hygiene. (b) Exemptions from educational requirements. The following persons are exempt from the educational requirements set forth in subsection (a) above: (1) Holders of Massage Establishment business permits and Massage Technician business permits issued by the City before the effective date of this Chapter shall have a period of eighteen (18) months from the effective date of this Chapter to satisfy the educational requirements set forth in subsection (a) above. (2) Eighteen (18) months from the effective date of this ordinance, any therapist who does not have the required 200 hours of education will not be permitted to practice massage in Palo Alto. However, the chief of police may provide special consideration on a case-by-case basis to those massage technicians who can prove through documentation that they are currently enrolled in coursework associated with massage therapy and compliance of the 200 hour requirement is expected within a reasonable amount of time. (3) Applicants for noncertified massage practitioner permits or applicants for noncertified massage establishments permits. 4.54.070 Massage technician application fee. Any application for a permit to act as a massage technician shall be accompanied by a nonrefundable fee as set forth in the municipal fee schedule. A massage technician pennit shall be renewed annually. The renewal fee shall be as set forth in the municipal fee schedule. Any person who applies for a permit to operate a massage establishment and who desires to act as a massage technician within said establishment shall not be required to furnish the information set forth in Section 4.54.080. 4.54.080 Application for massage technician permit. 6 (a) Any application for a permit to act as a massage technician shall be made with the chief of police. Within thirty working days following receipt of a completed application and LiveScan results, the chief of police shall either issue the permit, or mail a written statement of his reasons for denial thereof. Ifhe takes neither action, the permit shall be deemed to be issued. The chief of police may request the applicant to furnish fingerprints when needed for the purpose of establishing identification. In addition to the requirements of ~;hapter 4.04, the applicant shall furnish the following items: (1) Name, residence address and telephone number; (2) Social security number and driver's license number, if any; (3) Applicant's weight, height, color of hair and eyes; (4) Two recent passport photos of applicant; (5) Written evidence that the applicant is at least eighteen years of age; (6) Business, occupation or employment of the applicant for the three years immediately preceding the date of application; (7) The name and address of the establishment where the applicant is to be employed, and the name ofthe owner or operator of the same. Any massage technician granted a permit pursuant to this section must report a change in massage establishment employment within five days of said change; (8) The name and address of the "recognized school of massage" attended, the date attended, and a copy of the diploma or certificate of graduation awarded to the applicant, or other documentation showing the applicant has completed 200 hours. 4.54.090 Massage technician trainee . . (a) Any person desiring to obtain a permit to act as a massage technician trainee shall make an application to the chief of police. Within thirty working days following receipt of a completed application and having received LiveScan results, the chief of police shall either issue the .permit,-~ma.i.l a written. statementmo£his . .reaoon&JOfGe:aial- thereof. If he takes neither action, the permit shall be deemed to be issued. A massage technician trainee permit shall be issued to any person who has fulfilled all the requirements of Section 4.54.080, except item (8), and who produces written proof that the applicant is currently enrolled in a "recognized school of massage", as defined in this chapter; of the date the applicant enrolled in the recognized school of massage; and the scheduled date of graduation; and that the applicant has completed at least fifty hours of instruction and the date this instruction was completed; provided the applicant submits a letter signed by the owner or manager of a permitted massage establishment stating his immediate intent to employ the applicant to do massage as a trainee working under the 7 direct supervision and control of a massage technician who has received a permit under the provisions of this chapter unless: (1) The applicant knowingly made a material misstatement in the application for the trainee permit; or (2) The applicant has, within five years immediately preceding the date of the filing . of the application, been convicted in a court of competent jurisdiction of an offense involving conduct which requires registration under California Penal Code Section 290, or any violation of Sections 311 through 311.7,313.1,314,315,316,318 or 647(a), 647(b), 64?(d) or 647(h) ofthe California Penal Code or of any offense involving theft of property. No fee shall be required of a massage technician trainee applicant. The trainee must at all times comply with the laws relating to massage establishments, and the failure to comply may render the trainee ineligible to obtain a massage technician permit. Any massage technician trainee who, during the life of the trainee permit, completes the instruction required of a massage technician, shall be issued a massage technician permit upon payment of a massage technician application fee as set forth in the municipal fee schedule. 4.54.100 Appeal. In the event a permit or permit application has been denied, the applicant shall proceed pursuant to the appeal and hearing provision in Chapter 4.04. 4.54.110 Massage establishment facilities and operations requirements. (a) Except as otherwise indicated, all massage establishments, including those certified by CAMTC, shall comply with the following facilities and operations requirements: (1) Massage establishments shall comply with all code requirements. (2) A minimum of one toilet and wash basin shall be provided in every massage establishment. (3) Cabinets or other covered space shall be provided for the storage of clean linen. Approved receptacles shall be provided for the storage of all soiled linen and paper towels. (4) Minimum ventilation shall be provided in accordance with the building code of the city. To allow for adequate ventilation in cubicles, rooms and areas provided for patrons' use, which are not serviced directly by required window or mechanical systems 8 of ventilation, partitions shall be constructed so that the height of partition does not exceed seventy~five percent of the floor-to-ceiling height of the area in which they are located. (5) All plumbing and electrical installations shall be installed under permit and inspection of the building inspection department, and such installations shall be installed in accordance with the Uniform Building Code and the Uniform Plumbing Code. (6) The walls in all rooms where water or steam baths are given shall have a washable, mold-resistant surface. (7) All lavatories or wash basins shall be provided with hot and cold running water, soap and single-service towels andlor hot-air hand dryers. (8) Every portion of a massage establishment, including appliances, apparatus and personnel, shall be kept clean and operated in a sanitary condition. (9) All massage establishments shall provide clean and sanitary towels, sheets and linens in sufficient quantity. Towels, sheets and linens shall not be used by more than one person. Reuse of such linen is prohibited unless the same has first been laundered. Heavy white paper may be substituted for sheets; provided, that such paper is used once for each person and then discarded into a sanitary receptacle. (10) All walls, ceilings, floors, pools, showers, bathtubs, steam rooms and all other physical facilities for the establishment must be in good repair and maintained in a clean and sanitary condition. Wet and dry heat rooms, steam or vapor rooms, or steam or vapor cabinets, shower compartments and toilet rooms shall be thoroughly cleaned and disinfected each day the busill8BB is ill e"8l'~Bll. 13Mftt'ttes sftltll ee th6r6t'l~lJ eletmeei and disinfected after each use. (11) Disinfecting agents and sterilizing equipment shall be provided for any instruments used in performing acts of massage and said instruments shall be disinfected and sterilized after each use. (12) Pads used on massage tables shall be covered with durable, washable plastic or other acceptable waterproof material. (13) (A) To protect patrons from potential health and sanitary hazards, all employees, massage technicians and massage technician trainees shall be clean and shall perform all services on the premises in full, clean outer garments; (B) Exception. A massage technician may perform services wearing no clothing or wearing less than full outer garments when teaching a class gathered to learn the theory, practice, or work of massage, and when said class consists in part of massage by the technician or members of the gathered class. 9 The following items, (14) through (17), shall not apply to CAMTC certified establishments: (14) Each service offered, the price thereof, and the minimum length oftime such service shall be performed shall be posted or shall be available in a conspicuous public location in each massage establishment. All letters and numbers shall be capitals, and not smaller than 14 point font. (15) (A) Massage establishments shall close and remain closed from eleven p.m. (11 p.m.) to nine a.m. (9:00 a.m.) (B) After one year of operation a massage establishment may be exempted from the hours restrictions of this section by the chief of police upon a written request which .details the factual reasons supporting good cause for the exemption. The chief of police, in determining what constitutes good cause for this exemption from the hours restrictions, shall consider and weight the following factors: (i) The criteria outlined in Section 4J)4.140 of Chapter 4.04; (ii) The criteria outlined in Section 4.54.030 of this chapter; (iii) The impact which the massage establishment has had on the health, safety,and welfare of the local community, including, but not limited to, parking and traffic congestion; (iv) The massage establishment's compliance or noncompliance with all federal, state, and local laws, including,but not limited to, this municipal code. If, upon review of those factors, the chief of police determines that good cause does exist for the requested exemption, the chief may then exempt the particular massage establishment from the hours restrictions of this section. However, in no event shall any massage establishment close later than two a.m. nor open earlier than six a.m. (C) The exemption from the hours restrictions of this section shall be subject to review and renewal annually at the same time as the renewal of the underlying permit and the same factual showing shall be made as that required for the initial exemption. The chief shall not grant an hours exemption unless said ~stablishment has maintained the criteria specified in Section 4.54.110(a)(16)(B). (16) Off-premises Massage Prohibited. Except as otherwise provided, no person, , shall engage in any ofthe services permitted under this chapter at any place other than an establishment permitted pursuant to Chapter 4.54. 4.54.120 Inspection by officials. 10 (1) Physicians, surgeons, chiropractors, osteopaths or physical therapists who are duly permitted to practice their respective professions in the state of California; (2) Nurses registered under the laws of the state of Cali fomi a; (3) Barbers and beauticians who are duly permitted under the laws ofthe state of California. (4) Reflexologists performing reflexology; however any reflexologist engaged in massage shall be required to comply with the provisions of this Chapter. 4.54.180 Grounds for denial, probation, and disciplinary action. In addition to any provisions of this chapter, -the grounds set forth in Section 4.04.140 shall apply to permits and permits required under this chapter. Any circumstances constituting grounds for denial shall also constitute grounds for revocation, suspension or disciplinary action. 4.54.190 Hearing. Any pennittee whose permit has been suspended or revoked shall proceed pursuant to the appeal and hearing provisions of Chapter 4.04. ' 4.54.200 Application to existing establishments and technicians. All operators of existing massage bath or health treatment establishments, and all persons engaged in giving massage, bathing and health treatments in the city upon the @Efs@tiI;I@ €iat@ 9f~is sHafter sHaH l!@giB ~@ af~li@ati9B ~r9@@BB aB:€i @9tHfj;r wi~ aU application and other requirements within sixty (60) days following the effective date of this chapter. 4.54.210 Application of other code provisions. Chapters 1.08 and 4.04 shall apply to the subject matter ofthis chapter in all respects, including those not specifically mentioned in this chapter. 12 12 The provisions of this Chapter shall not apply to the following classes of individuals while engaged in the performance of the duties of their respective professions: (1) Physicians, surgeons, chiropractors, osteopaths or physical therapists who are duly permitted to practice their respective professions in the state of California; (2) Nurses registered under the laws of the state of California; (3) Barbers and beauticians who are duly permitted under the laws of the state of California. (4) Reflexologists performing reflexology; however any reflexologist engaged in massage shall be required to comply with the provisions of this Chapter. 4.54.180 Grounds for denial, probation, and disciplinary action. In addition to any provisions of this chapter, the grounds set forth in Section 4.04.140 shall apply to permits and permits required under this chapter. Any circumstances constituting grounds for denial shall also constitute grounds for revocation, suspension or disciplinary action. 4.54.190 Hearing. Any permittee whose permit has been suspended or revoked shall proceed pursuant to the appeal and hearing provisions of Chapter 4.04. 4.54.200 Application to existing establishments and technicians. All operators of existing massage bath or health treatment establishments, and all persons engaged in giving massage, bathing and health treatments in the city upon the effective date of this chapter shall begin the application process and comply with all application and other requirements within sixty (60) days following the effective date of this chapter. 4.54.210 Application of other code provisions. Chapters 1.08 and 4.04 shall apply to the subject matter of this chapter in all respects, including those not specifically mentioned in this chapter. Ma s s a g e O r d i n a n c e C o m p a r i s o n - J u n e 2 0 1 2 Ag e n c y E d u c a t i o n C l i e n t R e c o r d s L i a b i l i t y I n s u r a n c e R e f l e x o l o g y L a n g u a g e PA ( C u r r e n t ) 1 0 0 n o n o n o PA ( P r o p o s e d ) 2 0 0 n o $ 1 0 0 , 0 0 0 y e s - e x e m p t r e f l e x o l o g y CA M T C 2 5 0 / 5 0 0 n / a n o n o Be l m o n t 5 0 0 y e s $ 5 0 0 , 0 0 0 n o Bu r l i n g a m e 5 0 0 y e s $ 5 0 0 , 0 0 0 n o Ci t r u s H e i g h t s * 2 0 0 n o $ 2 , 0 0 0 , 0 0 0 y e s - e x e m p t r e f l e x o l o g y Ea s t P a l o A l t o di p l o m a f r o m a r e c o g n i z e d s c h o o l / or p r o o f o f 1 y e a r s e x p e r i e n c e no n o n o Fo s t e r C i t y 5 0 0 y e s $ 5 0 0 , 0 0 0 n o Lo s G a t o s 3 0 0 y e s $ 1 0 0 , 0 0 0 n o Mi l l b r a e 5 0 0 y e s $ 5 0 0 , 0 0 0 us e s t e r m ' r e f l e x o l o g y ' b u t r e q u i r e s t h e s a m e p e r m i t a s m a s s a g e Mo u n t a i n V i e w 1 0 0 n o n o n o Re d w o o d C i t y C A M T C o n l y * * C A M T C o n l y * * C A M T C o n l y * * C A M T C o n l y * * Sa n C a r l o s C A M T C o n l y * * C A M T C o n l y * * C A M T C o n l y * * C A M T C o n l y * * Sa n M a t e o 2 0 0 y e s $1 0 0 , 0 0 0 p r a c t i t i o n e r $5 0 0 , 0 0 0 e s t . no SM C S O C A M T C o n l y * * C A M T C o n l y * * C A M T C o n l y * * C A M T C o n l y * * Su n n y v a l e 1 0 0 y e s $ 1 , 0 0 0 , 0 0 0 n o * o n l y e x a m p l e o f r e f l e x o l o g y e x e m p t i o n ** C A M T C o n l y c e r t i f i e s m a s s a g e t h e r a p i s t a n d m a s s a g e p r a c t i t i o n e r s . C A M T C d o e s n o t c e r t i f y m a s s a g e e s t a b l i s h m e n t s . T h e r e f o r e t h e o n l y co m p a r i s o n s w e c a n m a k e w i t h o t h e r j u r i s d i c t i o n s , C A M T C a n d P a l o A l t o r e g u l a t i o n i s i n r e g a r d s t o t h e r a p i s t a n d p r a c t i t i o n e r s , no t es t a b l i s h m e n t s . City of Palo Alto (ID # 2287) Policy and Services Committee Staff Report Report Type:Meeting Date: 2/14/2012 February 14, 2012 Page 1 of 12 (ID # 2287) Summary Title: Massage Ordinance Revision Title: Request Policy and Services Committee Review of the Proposed Ordinance Changes to Section 4.54, Massage Establishments From:City Manager Lead Department: Police Recommendation Staff requests that the Policy and Services Committee review the proposed updated Massage Ordinance and recommend passage of the ordinance to City Council. Background The City of Palo Alto enacted the current massage ordinance, Palo Alto Municipal Code (PAMC) Section 4.54, to regulate the location of and ensure the lawful commerce of massage businesses in Palo Alto. The ordinance was enacted in 1974 (Attachment A). The Police Department has been responsible for compliance with and enforcement of that ordinance. In 1996, in anticipation of pending State legislation and oversight, the City of Palo Alto suspended enforcement of the massage ordinance. For a variety of reasons, the anticipated State legislation was not passed until 2009. During the interim period, the City of Palo Alto informed massage applicants and previously permitted therapists of the ordinance suspension (Attachment B). The Police Department’s Code Enforcement Officer is responsible for massage permitting and compliance with the ordinance. The Police Department recently revisited the ordinance and State regulations. The review included research into the number of massage practitioners in Palo Alto and a comparison of Palo Alto’s ordinance with other municipalities’ ordinances and with the State regulations and requirements. The Police Department reviewed the massage municipal ordinances of Belmont, San Mateo, Los Gatos, Redwood City, Burlingame, Foster City, Mountain View, and Millbrae. There are 195 massage therapists currently working in the City, 111 of whom are CAMTC certified. Sample research to gauge the current number of unpermitted massage therapists in Palo Alto revealed that the California Avenue business area had approximately 24 unregulated therapists. A number of those therapists are working without permits in solo establishments, in violation of the suspended ordinance. There are currently three businesses within Palo Alto that are permitted as massage establishments; Watercourse Way, Body Kneads, and Massage February 14, 2012 Page 2 of 12 (ID # 2287) Therapy Center. There are four similar businesses in Palo Alto that are not permitted as massage establishments: Equinox, La Belle Day Spa, Destino Spa, and Happy Feet. The Police Department contacted the California Massage Therapy Council (CAMTC) for their regulations on massage therapy. The CAMTC is a public nonprofit benefit corporation established by the State legislature in 2009 to regulate massage practice. Based on the CAMTC regulations and the ordinances of other municipalities, the Police Department and City Attorney’s Office determined it was necessary to redraft major portions of the City’s existing ordinance. These recommended changes include adding an additional massage therapist classification, and suggesting changes to permitting fees. The proposed fee adjustments are consistent with the fees charged by other major cities within Santa Clara County and adjacent counties. State Legislation Senate Bill 731 and Business and Professions Code 4600 Senate Bill (SB) 731, adopted in September 2009, enacted legislation impacting the ability of municipalities to regulate massage establishments (Attachment C). It also created a public nonprofit benefit corporation, the California Massage Therapy Council (CAMTC), and authorized CAMTC to regulate and standardize the issuance of massage therapist and practitioner certificates throughout the state. SB 731 prohibited any city or county from enacting ordinances regulating the practice of massage by CAMTC certificate holders. Under SB 731, persons who apply for and are granted a massage therapist or practitioner certificate are exempt from any local ordinances regulating massage. Under State Law (B&P section 4612), massage practitioners with a valid state certificate may practice massage in any jurisdiction, without having to obtain additional permits from any local regulating body (Attachment D). In addition, the code prohibits local regulating bodies from adding massage specific regulations to massage businesses operated by CAMTC certificate holders. The intent of the bill is to provide uniform regulations statewide and to eliminate the disparate treatment of massage establishments. The code allows local jurisdictions to adopt reasonable health and safety requirements for massage establishments and provides the authority for local jurisdictions to establish an application process for massage practitioners and establishments that choose not to certify through CAMTC. The City of Palo Alto’s existing massage ordinance is not consistent with Senate Bill 731 and includes requirements that are prohibited by SB 731. Assembly Bill 619, approved by the Governor August 3, 2011 On January 1, 2012, new legislation went into effect (AB 619), amending SB 731 and expanding the ability of the CAMTC to enact regulatory powers over certified massage practitioners and therapists. AB 619 changed some of the CAMTC certification renewal dates, required certificate holders to display their certificates and removed some certificate holder liability. CAMTC Guidelines February 14, 2012 Page 3 of 12 (ID # 2287) Business and Professions Code 4600 establishes the CAMTC guidelines for two separate classifications for massage workers: Massage Practitioner and Massage Therapist. The application and certification process for both certifications require education hours in excess of what the City of Palo Alto’s suspended massage ordinance currently requires. The CAMTC contracts with investigators to carefully review the background and qualifications of each applicant prior to approving certification. The following is the criteria for certification by the CAMTC: 4601(a) Massage practitioner: ·The applicant must be 18 years or older. ·Must have successfully completed 250 hours of education from a CAMTC approved school. ·Provide proof of official tax returns. ·Pass a DOJ and FBI background check. ·Have no disqualifying criminal history. 4601(c) Massage Therapist: ·The applicant must be 18 years or older. ·Must have successfully completed from a CAMTC approved school 500 hours of education. ·Must pass a massage and bodywork competency assessment test. ·Provide proof of official tax returns. ·Pass a DOJ and FBI background check. ·Have no disqualifying criminal history. State Law Summary ALLOWED PROHIBITED Local agency may verify information and receive the state certificate holder’s history from CAMTC. Local agency cannot require CAMTC certified massage therapists to obtain a license, permit or other authorization to practice massage. Local agency may adopt reasonable health and safety requirements, i.e., cleanliness of massage rooms, towels and linens, reasonable attire and personal hygiene for persons providing massage services providing it does not impose additional qualifications such as medical exams, background checks or other criteria. Local agency cannot enact ordinances, regulations, rules, requirements, restrictions, land use regulations, moratoria, conditional use permits or zoning requirements that are different than those requirements that are uniformly applied to all individuals and businesses providing professional services. Local agency may require file copies or other evidence of state certification and must have on premise for review. Local agency cannot enact or enforce existing local building code or physical facility requirements that do not uniformly apply to other professional or personal service February 14, 2012 Page 4 of 12 (ID # 2287) businesses. Local agency may require owner or operator to be responsible for conduct of all employees or independent contractors working on premises of the business, and revoke, or suspend for violations on the premises. Local agency cannot require unlocked doors when there is no staff available to ensure security for clients and massage staff who are behind closed doors or require windows that provide a view into the rooms that interfere with the privacy of clients of the massage business. Local agency may conduct reasonable inspections. Local agency may require the owner/operator to notify the city of any change to name, management or conveyance of the business to another person. Local agency can require a background check on an owner who owns more than 5% of the business and is not state certified. The intention of the state law is to enable consumers to identify legitimate and professional massage therapists and businesses by establishing certain standards and requiring background checks and fingerprinting. In addition, the CAMTC investigates and approves schools of massage that meet CAMTC criteria. CAMTC maintains a list of “suspect” schools and has authority to deny or revoke certifications. Other Municipal Massage Ordinances Other local cities and counties such as Redwood City and the San Mateo County Sheriff’s Office are currently updating their municipal codes relating to massage to comply with SB 731 and AB 619. Other municipalities such as the Cities of San Mateo, Foster City, Belmont, and Burlingame continue to operate with their existing city processes and exempt CAMTC certified therapists, practitioners, and establishments from city regulations. A summary of local municipalities’ massage ordinances follows: ·Santa Rosa, San Rafael, and San Carlos have adopted ordinances that remove the option for city permits and require all massage therapists in their respective jurisdictions to be CAMTC certified. Redwood City and the San Mateo County Sheriff’s office are considering similar ordinances. ·Los Gatos recently adopted an ordinance allowing for two methods of obtaining a permit. This system provides the option of two complying permits; either through CAMTC or through the local permitting process. ·Sunnyvale adopted a similar ordinance. Massage practitioners have two options to comply with the ordinance. They can obtain a massage license issued by the director of public safety by meeting City certification requirements or obtain certification February 14, 2012 Page 5 of 12 (ID # 2287) through the CAMTC process. The Sunnyvale ordinance requires a higher minimum of liability coverage than surrounding cities. ·Mountain View recently updated its massage ordinance which also allows two methods of obtaining a massage permit. Mountain View has included unique establishment and practitioner classifications in its massage ordinance that have specific requirements. The classifications are “Non-certified Massage Permit” and “Non-certified Massage Establishment Practitioner.” Mountain View’s defines a non-certified massage practitioner as a massage practitioner who performs massage in an open and common room without partitions, and the individual in receipt of the massage remains fully clothed and does not disrobe except below the knee. Non- certified massage establishments are defined as establishments that employ exclusively non-certified practitioners. Other than this exemption, the same requirements applicable to normal massage establishments apply to non-certified massage establishments. Discussion The City of Palo Alto’s proposed massage ordinance has been revised to comply with current state laws, including revised municipal fees for permits and provides the option of a local permitting process as an alternative to CAMTC certification. City of Palo Alto Massage Ordinance Proposal The City of Palo Alto Massage Ordinance provides for the orderly regulation of massage establishments and massage technicians in the interests of the public health, safety, and welfare by providing certain minimum qualifications for the operators of massage establishments and for massage technicians and trainees. Staff’s proposed ordinance allows two methods for certification. Massage practitioners can obtain a CAMTC certificate, which will permit them to operate without additional requirements or certification. Those practitioners who do not obtain CAMTC certification can obtain a permit from the City. The proposed ordinance mandates non-CAMTC certified applicants obtain a DOJ fingerprint check and criminal history check. Non-CAMTC applicants must have minimum education hours from an accredited school. The proposed ordinance has less stringent requirements for City applicants than the requirements of CAMTC. The educational hours for a City permit are 200; CAMTC requires either 250 or 500 hours depending on certification level. A grace period of 18 months will be granted to previously permitted Palo Alto therapists to allow the therapists to meet the required additional education. The proposed ordinance would require massage therapists to receive education from schools accredited by the Bureau for Private Post Secondary Education, a government institution of the Department of Consumer Affairs. The City of Palo Alto proposed massage ordinance (Attachment F) encompasses the following changes to the 1974 ordinance: February 14, 2012 Page 6 of 12 (ID # 2287) ·Adds language to exempt CAMTC certificate holders from obtaining an additional City massage permit. ·Increases the education hours (from an accredited school) required for therapists from the current 100 hours to 200 hours. ·Creates a new category of establishment, a sole proprietor, allowing a single person massage business to operate at a fixed location and reduces establishment fees. ·Adds the requirement of malpractice insurance, a minimum of $100,000 liability by all establishments, sole proprietors,and businesses supporting accessory massage technicians. ·Adds the requirement that massage technician permits be on display in a conspicuous location in all establishments. ·Requires all establishments to maintain limited client records including contact information, to be furnished upon court order to investigating City officials. ·Eliminates any special building requirements for massage establishments, as required by SB 731. ·Eliminates zoning requirements specifically targeting massage establishments. ·Adds the ability to deny massage technician permit issuance to any person the CAMTC has previously revoked, suspended, or denied. Permitting fees were determined by estimating staff time required for the permitting process and a survey of surrounding agencies’ fees (Attachment G). The City of Palo Alto’s review of those fees concluded that reasonable annual massage therapist and establishment rates for the City are as follows: Massage Establishments (New) $750 (Renewal) $450 Sole Proprietor establishment (New) $350 (Renewal) $150 Massage Technician (New) $300 (Renewal) $150 Community Discussion Following the creation of the draft ordinance, police staff posted the draft ordinance on the City’s website. Staff invited massage therapists and establishment proprietors operating in Palo Alto to a series of community meetings. The two meetings were attended by police staff and the Assistant City Attorney on April 5, 2011 and June 2, 2011. A CAMTC Board Member attended the June 2nd meeting. On May 18, 2011, Police Department staff held a multi- jurisdictional meeting with the CAMTC board members and staff from other municipalities to clarify the intent and reading of SB 731. The following paragraphs outline the specific meeting dates and discussion. April 4, 2011-Meeting with Watercourse Way Representatives Police Department staff met with the business owner and an administrator from Watercourse Way (WCW), a massage establishment in Palo Alto. WCW staff expressed concerns about the February 14, 2012 Page 7 of 12 (ID # 2287) potential impact the updated massage ordinance would have on their business. WCW staff felt that the ordinance did not comply with B&P 4601 as it was written and that it was unfairly targeting their business. WCW staff thought the fees were unfair and questioned why they were going to be assessed after 15 years of no enforcement. WCW staff was also concerned about the change in zoning ordinances for massage business and the possibility of additional competition. Department staff noted all of the concerns and WCW representatives were included in subsequent discussions and review of the draft ordinance. Community Meeting on April 5, 2011 On April 5, 2011, a general community meeting was held in the Council Chambers to discuss the draft ordinance. The meeting was attended by police staff and the Assistant City Attorney. Approximately 60-70 persons, many of whom were practitioners, attended the meeting. The proposed changes to the ordinance were read aloud for the community members. Staff explained the reasons for updating the ordinance and acknowledged that considerable time had passed since the City stopped assessing fees for massage permitting and enforcing of the existing ordinance. Staff explained the review process of other municipal ordinances and the research conducted into new State laws regulating the massage industry. Staff also supplied printed copies of the draft ordinance. Community members voiced a number of concerns during the meeting. A principal concern with the initial draft was a requirement that all establishments must maintain a “log book,” recording information about the client including contact information, services rendered, and date and time of service, to be furnished to Police personnel upon request. Other municipalities have this requirement to assist in criminal investigations. Massage establishment proprietors challenged the legality of the log book. Community members also wanted to eliminate the requirement of a citizen needing a physician’s note to allow in-home or “outcall” massage practice, feeling it was an undue burden on the therapist and client. In addition, some practitioners did not think it was necessary to have to provide a locked receptacle for securing client’s personal items. Members requested a “grandfather” provision, waiving additional education requirements for therapists currently permitted with the City. Staff assured the community members that all of their input and concerns would be considered before a final draft of the ordinance was authored. May 5, 2011 meeting with Happy Feet owner Police Department staff met with the owner of Happy Feet in Palo Alto, Mr. Bertlesen. Happy Feet is an unpermitted massage establishment that offers low cost full body massage with the clients fully clothed. Mr. Bertlesen does not feel that his business of “reflexology” and “foot massage” met the definition of “massage” as defined in the City’s ordinance. Mr. Bertlesen believes that his employees should be exempt from meeting the education requirements of the ordinance and that they should not have to be permitted as massage technicians with the City. His employees are not CAMTC certified. Happy Feet employees do not have any verifiable education in massage technique. Mr. Bertlesen stated the employees of Happy Feet are paid February 14, 2012 Page 8 of 12 (ID # 2287) low wages, and only for the actual time they spend doing massage. Happy Feet’s business model keeps his low-cost massage business operating, and Mr. Bertlesen stated if his employees were required to meet certification standards they would leave his business for other employment. Staff listened to Mr. Bertlesen’s concerns and reviewed the definition of “massage” with him. The hands-on nature of the full body massage that Happy Feet provides clearly puts the business within the category of a massage establishment. Staff discussed the possibility of allowing an exemption for a foot massage only business. Staff advised Mr. Bertlesen that if his business provided full body massage the therapists would be required to meet the certification standards in the ordinance. Staff offered suggestions such as allowing extra time for him to bring in a CAMTC certified trainer who spoke other languages, so that his staff could meet the education requirements of the City’s ordinance. May 18, 2011-Multi-Jurisdictional CAMTC Meeting In order to fully understand and comply with SB 731 regulations, police staff organized a meeting with CAMTC board members to explain the State Council’s purpose and regulatory function. Representatives from other cities were invited to the meeting and were in attendance. The CAMTC board members clarified how municipalities can enforce their own massage ordinances. The CAMTC recommended the option that cities adopt a rule to only allow CAMTC certified practitioners and therapists to operate within their jurisdiction. That option would allow for very little oversight and regulation as CAMTC certificate holders are exempt from the City permit process to practice massage. The CAMTC also has stringent education guidelines, completes thorough background checks, and has the ability to suspend or revoke certifications upon validated complaints. The requirements for CAMTC certification are more stringent than the proposed City ordinance. If the City of Palo Alto adopted an ordinance that only CAMTC certified therapists work within the city approximately 50 percent of the current therapists would not be able to work until they gained the required certification. May 19, 2011 and May 26, 2011-Small Group Massage Therapist Meetings Staff met one on one with therapists representing large businesses, as well as sole- proprietorships. The meetings were held to discuss areas of contention and to review an updated draft of the ordinance. The topics of discussions included displaying photographs of the permit holders, appropriate closing times for establishments, and outcall issues. Final Draft changes Following the community meetings, the meeting with CAMTC, and the one on one meeting with massage therapists, staff re-visited several major portions of the draft ordinance. The ordinance was changed taking into consideration the concerns of the massage practitioners and business owners. The following changes were made: February 14, 2012 Page 9 of 12 (ID # 2287) ·Logbooks: Many cities require massage establishments to maintain client records reflecting type of service rendered and basic client contact information. The records are supposed to be made available for law enforcement inspection upon the complaint of criminal activity that may have occurred at the establishment, to aid in the investigation. The logbook mandate is a legal request from municipalities. In order to address privacy concerns, the proposed ordinance requires that client information be recorded in some manner; however the information would be made available to law enforcement personnel only pursuant to a court order. ·Education:The existing ordinance required 100 hours of education prior to permit issuance. That requirement is far below the 500 hours required of CAMTC certified therapists and well below the requirements of other comparable municipalities. The proposed ordinance requires 200 hours of education. A grace period of 18 months would be granted to previously permitted therapists to allow the therapists to meet the required additional education. The staff recommendation is acceptable to most members of the massage community. ·Definition: Staff recommends keeping the definition of “massage establishment” as follows; “Massage establishment” means any establishment with more than one massage technician having a fixed place of business where any firm, association, partnership, corporation, joint venture or combination of individuals engages in, conducts, carries on or permits to be engaged in, conducted or carried on massages, baths, or health treatments involving massage or baths, where massage is part of primary function of the business.Only one currently unpermitted establishment disagreed with this definition, contending that full body massage with clothing on did not fall under the category of a massage establishment. ·Wording: The massage community at large felt the wording in previous drafts was unclear in respect to differentiating between state certification and city permits. Staff made changes to the ordinance to clearly establish that state certified massage therapists and technicians were exempt from City permitting requirements. ·Ability to Deny Permit: In section 4.54.030, staff added the ability to deny permit issuance if a person had previously been revoked, suspended, or denied a permit from the CAMTC. No persons contested this addition. ·Photos:The original draft ordinance contained a provision mandating permit holders display their City massage technician permit with photograph at their place of work for clients to view (CAMTC certified persons must do this). Community members commented that they felt the photo requirement was unfair and that clients may see photos and choose a therapist based on their appearance. Staff agreed the establishments can meet this requirement of public display by maintaining a permit binder to be furnished upon client request. ·Outcall: Staff recommends that the City not issue permits to allow massage practitioners to perform “outcall massage.”. This is consistent with the current practices of many municipalities. The existing ordinance allowed outcall only with a doctor’s prescription. This exception rarely occurred and proved difficult for City staff to verify. Staff February 14, 2012 Page 10 of 12 (ID # 2287) recommends prohibiting outcall for all City-permitted therapists and allowing outcall for state-certified therapists in accordance with state law. Second Community Meeting-June 2, 2011 Staff held a second community meeting to address issues with the updated draft ordinance. Community members were able to review the draft prior to the meeting. Staff reviewed the areas of discussion and highlighted the changes. There was little discussion or questions after the review of the final draft. Options for Regulating Massage Staff has drafted a proposed ordinance that brings it into compliance with State Law. The City has several options on how it may regulate massage practice. Those options are: 1. Allow CAMTC certified workers and businesses only. The benefits of this approach would allow for consistency among workers and businesses as to rules and regulations. The City would be unable to regulate such workers and businesses differently than other professional services. In Palo Alto, 50 percent of persons operating as permitted massage therapists do not have state certification. Staff believes having a state certification only policy is unfair to current practitioners that have been working for years in the City without state certification. The three current establishments in Palo Alto are not state certified. Under existing state law, a worker would have had until January 1, 2012 to demonstrate that they have the equivalent experience and education to justify certification without meeting the 250-500 hour requirement from an approved school, pass the background process, and pay state fees. The massage community of Palo Alto was not in favor of this approach, as many persons would be unable remain working in the city due to the amount of time it takes to receive approved education and complete the state certification process. 2. Create a hybrid approach with one set of regulations for City permitted workers and businesses and a separate set of regulations for CAMTC certified workers and businesses. This allows the City to retain its authority over those workers and businesses that do not become state certified and allows the City to retain authority in limited areas over state certified workers and businesses. The disadvantage of this approach is that it is cumbersome, creates additional work, and causes potential confusion between the two processes. 3. Continue with the existing City process, with modification for state regulations, and exempt CAMTC certified workers and establishments from the City regulation. The benefit of this approach is that it is simple and involves no substantial change to existing city law, with the exception of the state-mandated changes. This allows for currently working therapists to continue working in Palo Alto as they have been, after obtaining a City permit. Recommendation February 14, 2012 Page 11 of 12 (ID # 2287) Staff recommends the adoption of Option #3. Staff recommends updating the existing ordinance to comply with state law. This is the best option for both the City and the therapists who work in Palo Alto. The community meetings provided the opportunity for the massage community to have input and voice concerns about the proposed changes to the ordinance. Those concerns were identified, vetted, and addressed in the follow-up community meetings and the one-on-one meetings with community members. Individual members of the massage community assisted in the final review of the proposed ordinance. The proposed ordinance was revised with consideration of the input from the meeting participants. The proposed ordinance recognizes the needs of the massage community and represents compromise by the City and the massage community. The proposed ordinance recognizes and allows the practice of massage therapy in the City of Palo Alto. The ordinance allows existing massage technicians and establishments to continue doing business, and provides a reasonable timeline for therapists to comply with the educational requirements of the ordinance. The intent of the ordinance is to ensure that those who offer massage services are qualified, trained, and conduct their work in a lawful and professional manner. Persons who choose to patronize the therapists within Palo Alto can have confidence that the therapists have successfully met standardized qualifications. The proposed ordinance is consistent with other local municipalities and State standards. The ordinance also allows greater flexibility for business persons to operate within the City in a safe and reasonable manner. The passage of the proposed ordinance will allow the City to resume consistent enforcement of massage practice within Palo Alto. Resource Impact The passage of the proposed ordinance will require considerable staff time to get all current therapists permitted and sole proprietorships and establishments permitted/inspected. The ordinance establishes a grace period of 18 months for educational requirements and 60 days for massage establishments to become compliant. The ordinance requires annual inspections by a Police Department staff member that can be completed within the existing job classification of Code Enforcement Officer and within the existing Police Department budget. Larry Perlin, from the Planning Department, was consulted and a building inspector will be notified of inspection times and days so they may send a representative when available. Staff costs will be recovered through the collection of permit fees. Attachments: ·Attachment A -PAMC 4.54 (PDF) ·Attachment B -Temp Permit (PDF) ·Attachment C -SB 731 (PDF) February 14, 2012 Page 12 of 12 (ID # 2287) ·Attachment D -B&P Code 10.5 (PDF) ·Attachment E -AB 619 (PDF) ·Attachment F -Proposed PAMC 4.54 (PDF) ·Attachment G -Other Cities'Fees (PDF) ·Attachment H -Letters to Council re Massage Ordinance 020812 (PDF) Prepared By:April Wagner, Police Lieutenant Department Head:Dennis Burns, Police Chief City Manager Approval: ____________________________________ James Keene, City Manager Attachment A Sections: Palo Alto Municipal Code Chapter 4.54 MASSAGE ESTABLISHMENTS 4.54.010 Purpose and intent. 4.54.020 Definitions. 4.54.030 Massage establishment license required. 4.54.040 Massage establishment license application fee. 4.54.050 Application for massage establishment license. 4.54.060 Massage technician permit required. 4.54.070 Massage technician application fee. 4.54.080 Application for massage technician permit. 4.54.090 Massage technician trainee. 4.54.100 Appeal. Page lof12 4.54.110 Massage establishment facilities and operations requirements. 4.54.120 Inspection by officials. 4.54.130 Business name. 4.54.140 Business location change. 4.54.150 Sale or transfer of massage establishment interest. 4.54.160 Display of permits, licenses. 4.54.170 Exemptions. 4.54.180 Grounds for denial, probation, and disciplinary action. 4.54.190 Hearing. 4.54.200 Application to existing establishments and technicians. http://www.amlegal.comlalpscripts/get-content.aspx 11/22/2011 Page 20f12 4.54.210 Application of other code provisions. 4.54.010 Purpose and intent. It is the purpose and intent of this chapter to provide for the orderly regulation of massage establishments and massage technicians, as defined in this chapter, in the interests of the public health, safety and welfare by providing certain minimum building, sanitation and health standards for massage establishments, and by providing certain minimum qualifications for the operators of massage establishments and for massage technicians and massage technician trainees. (Ord.2833 § 1 (part), 1974) 4.54.020 Definitions. (a) For the purpose of this chapter, unless the context clearly requires a different meaning, the words, terms and phrases set forth in this section shall have the meanings given them in this section: (1) "Massage" means any method of pressure on, or friction against, or stroking, kneading, rubbing, tapping, pounding, vibrating or stimulating the external parts of the human body with the hands or with the aid of any mechanical or electrical apparatus, or other appliances or devices, with or without such supplementary aids as rubbing alcohol, liniment, antiseptic, oil, powder, cream, lotion, ointment or other similar preparations. (2) "Massage establishment" means any establishment having a fixed place of business where any individual, firm, association, partnership, corporation, joint venture or combination of individuals engages in, conducts, carries on or permits to be engaged in, conducted or carried on massages, baths or health treatments involving massage or baths as the principal functions. (3) "Massage technician" means any person who administers massages, baths or health treatments involving massages or baths as the principal functions to another person for any consideration whatsoever. (4) "Recognized school of massage" means any school or institution of learning which teaches the theory, ethics, practice, profession and work of massage, which school or institution of learning requires a residence course of study of not fewer than seventy hours to be given in not more than three calendar months before the student shall be furnished with a diploma or certificate of graduation from such school or institution of learning following the successful completion of such course of study or learning, and which school has been approved pursuant to California Education Code Section 29025, or, if said school is not located in California, has complied with standards commensurate with those required in said Section 29025. Any school or institution of learning offering or allowing correspondence course credit not requiring actual attendance at class, or courses of a massage technician not approved by the California State Department of Education shall not be deemed a "recognized school of massage." (5) "License" means the business license to operate a massage establishment as required by this chapter. (6) "Permit" means the permit to engage in the activities of a massage technician or a massage technician trainee as required by this chapter. http://www.amlegal.com/alpscriptsl get ~content.aspx 11/22/2011 Page 3 of 12 (7) "Person" means aJ1Y individual, firm, association, partnership, corporation, joint venture or combination of individuals. (Ord. 2833 § 1 (part), 1974) 4.54.030 Massage establishment license required. (a) It is unlawful for any person to engage in, conduct or carry on, in or upon any premises within the city the operation of massage establishment without the license obtained from the chief of police as required by this chapter. A massage establishment license shall be issued to any person who has complied with the requirements of Sections 4.54.050 and 4.54.110 of this chapter, and all other applicable provisions of this code; unless grounds for denial of such license are found to exist. In addition to those set forth in Section 4.04.140, grounds for denial include: (1 ) The applicant made a material misstatement in the application for a license; (2) The applicant has, within five years immediately preceding the date of the filing of the application, been convicted in a court of competent jurisdiction of an offense involving conduct which requires registration under California Penal Code Section 290, or any violations of Sections 311 through 311.7, 3l3.1, 314, 315, 316, 318 or 647(a), 647(b), 647(d), or 647(h) of the California Penal Code, or of any offense involving theft of property or violence; (3) That the operation of a massage establishment, as proposed by the applicant if permitted, would not comply with all applicable laws including, but not limited to, all city ordinances and regulations; (4) That the operation of the proposed massage establishment is likely to be injurious to the health, safety, welfare, and interest of the people of the city; (5) That the applicant is lacking in the background and qualifications to conduct a bona fide massage establishment; or (6) That the applicant has violated any provision of this chapter, or of any similar ordinance, law, rule or regulation of another public agency which regulates the operation of massage establishments. (Ord. 3113 § 4, 1979: Ord. 2946 § 1, 1976: Ord. 2921 § 9, 1976: Ord. 2833 § 1 (part), 1974) 4.54.040 Massage establishment license application fee. Any application for a license to operate a massage establishment shall be accompanied by a nonrefundable fee as set forth in the municipal fee schedule. The application fee shall be used to defray, in part, the costs of investigation and report, and is not made in lieu of any other fees or taxes required under this code. A license to operate a massage establishment shall be renewed annually. The renewal fee shall be as set forth in the municipal fee schedule. (Ord. 2960 § 27, 1976: Ord.2921 § 1, 1976: Ord. 2833 § 1 (part), 1974) http://www.amlegal.comlalpscripts/get-content.aspx 11122/2011 Page 4 of 12 4.54.050 Application for massage establishment license. (a) Any application for a license to operate a massage establishment shall be made with the chief of police. Within thirty working days following receipt of a completed application, the chief of police shall either issue the pennit or mail a written statement of his reasons for denial thereof. The application shall set forth the exact nature of the massage, bath or health treatment to be administered, the proposed place of business and facilities therefor, and the name and address of each applicant. The chief of police may request the applicant to allow fingerprints to be taken when needed for the purpose of establishing identification. In addition to the requirements of Chapter 4.04 and this section, any applicant shall furnish the following information: (1) The previous addresses of applicant, if any, for a period of three years immediately prior to the date of the application and the dates of residence at each; (2) Written proof that the applicant is at least eighteen years of age; (3) Applicant's height, weight, color of eyes and hair; (4) The applicant shall allow the police officer processing the application to take photographs of the applicant; (5) Business, occupation or employment history ofthe applicant for the three years immediately preceding the date of the application; (6) If the applicant is a corporation, the name of the corporation shall be set forth exactly as shown in its articles of incorporation, together with the names and residence addresses of each of its officers, directors, and each stockholder holding more than five percent of the stock of the corporation. If the applicant is a partnership, the application shall set forth the name and residence address of each of the partners, including limited partners. If one or more of the partners is a corporation, the provisions of this section pertaining to a corporate applicant shall apply; (7) The names and residence addresses of all persons currently employed or intended to be employed in the massage establishment, regardless of the nature of the employment, other than any person licensed pursuant to Section 4.54.060, along with the proposed or actual nature of the work performed or to be performed, and recent passport-size photographs, suitable to the police officer processing the application, of each such employee. The chief of police may require such employee to allow fingerprints to be taken for the purpose of identification. Any applicant or licensee shall notify the city in writing of the names, addresses and nature of the work, of any new employees, within five days of such employment, and supply the photographs described in this subsection. Such new employees shall allow fingerprints to be taken for the purpose of identification upon request. "Employee" includes every owner, partner, manager, supervisor and worker, whether paid or not, who renders personal services of any nature in the operation of a massage establishment; (8) Such other information as may be deemed necessary by the chief of police. (Ord.2946 § 2, 1976: Ord. 2921 § 9, 1976: Ord. 2833 § 1 (part), 1974) http://www.amlegal.comlalpscripts/get-content.aspx 11122/2011 Page 5 of 12 4.54.060 Massage technician permit required. (a) It is unlawful for any person to act as a massage technician or a massage technician trainee unless such person holds a valid permit issued by the chief of police. A massage technician permit shall be issued to any person who has fulfilled the requirements of Section 4.54.080, and all other applicable provisions of this code; unless grounds for denial of such permit are found to exist. In addition to those set forth in Section 4.04.140, grounds for denial include: (1) The applicant made a material misstatement in the application for a license; (2) The applicant has, within five years immediately preceding the date of the flling of the application, been convicted in a court of competent jurisdiction of an offense involving conduct which requires registration under California Penal Code Section 290, or any violations of Sections 311 through 311.7,313.1,314,315,316,318 or 647(a), 647(b), 647(d), or 647(h) of the California Penal Code, or of any offense involving theft of property or violence; (3) That the issuance of the permit is likely to be injurious to the health, safety, welfare, and interest of the people of the city; (4) That the applicant is lacking in the background and qualifications to act as a massage technician; or (5) That the applicant has violated any provision of this chapter, or of any similar ordinance, law, rule or regulation of another public agency which regulates the operation of massage establishments or massage technicians. (Ord. 3113 § 5, 1979: Ord. 2921 §§ 2, 9, 1976: Ord. 2833 § 1 (part), 1974) 4.54.070 Massage technician application fee. Any application for a permit to act as a massage technician shall be accompanied by a nonrefundable fee as set forth in the municipal fee schedule. A massage technician permit shall be renewed annually. The renewal fee shall be as set forth in the municipal fee schedule. Any person who applies for a license to operate a massage establishment and who desires to act as a massage technician within said establishment shall not be required to furnish the information set forth in Section 4.54.080. (Ord.2960 § 28,1976: Ord. 2921 § 3,1976: Ord. 2833 § 1 (part), 1974) 4.54.080 Application for massage technician permit. (a) Any application for a permit to act as a massage technician shall be made with the chief of police. Within thirty working days following receipt of a completed application, the chief of police shall either issue the permit, or mail a written statement of his reasons for denial thereof. If he takes neither action, the permit shall be deemed to be issued. The chief of police may request the applicant to furnish fingerprints when needed for the purpose of establishing identification. In addition to the requirements of Chapter 4.04, the applicant shall furnish the following information: http://www.arnlegal.com/alpscripts/ get -content.aspx 1112212011 Page 6 of 12 (1) Name, residence address and telephone number; (2) Social security number and drivds license number, if any; (3) Applicant's weight, height, color of hair and eyes; (4) The applicant shall furnish a recent photograph of applicant to the police department official who processes the application; (5) Written evidence that the applicant is at least eighteen years of age; (6) Business, occupation or employment of the applicant for the three years immediately preceding the date of application; (7) The name and address of the establishment where the applicant is to be employed, and the name of the owner or operator of the same. Any massage technician granted a permit pursuant to this section must report a change in massage establishment employment within five days of said change; (8) The name and address of the recognized school of massage attended, the date attended, and a copy of the diploma or certificate of graduation awarded the applicant showing the applicant has completed not fewer than seventy hours of instruction, or written and verified proof that applicant has had at least five hundred hours' experience in the profession, work and method of massage as of the effective date of the ordinance codified in this chapter. (Ord. 2921 §§ 4, 9, 1976: Ord. 2833 § 1 (part) 1974) 4.54.090 Massage technician trainee. (a) Any person desiring to obtain a permit to act as a massage technician trainee shall make an application to the chief of police. Within thirty working days following receipt of a completed application, the chief of police shall either issue the permit, or mail a written statement of his reasons for denial thereof. If he takes neither action, the permit shall be deemed to be issued. A massage technician trainee permit shall be issued to any person who has fulfilled the requirements of Section 4.54.080 and who produces written proof that the applicant is currently emolled in a recognized school of massage, as defined in this chapter; of the date the applicant emolled in the recognized school of massage; and the scheduled date of graduation; and that the applicant has completed at least fifty hours of instruction and the date this instruction was completed; provided the applicant submits a letter signed by the owner or manager of a licensed massage establishment stating his immediate intent to employ the applicant to do massage as a trainee working under the direct supervision and control of a massage technician who has received a permit under the provisions ofthis chapter unless: (1) The applicant knowingly made a material misstatement in the application for the trainee permit; or (2) The applicant has, within five years immediately preceding the date of the filing of the application, been convicted in a court of competent jurisdiction of an offense involving conduct which requires registration under California Penal Code Section 290, or any violation of Sections 311 through 311.7,313.1,314,315,316,318 or 647(a), 647(b), 647(d) or 647(h) of the California Penal Code or of any offense involving theft of property. http://www.amlegal.com/alpscripts/get-content.aspx 11122/2011 Page 7 of 12 The trainee permit shall allow the student to work in a massage establishment under the supervision and direction of a massage technician who has received a permit issued under the provisions of this chapter; provided, however, no licensed massage technician shall be permitted to supervise more than two persons issued a trainee permit. The trainee permit shall expire three months from the date of issuance and shall not be renewed unless good cause is shown by the applicant for such renewal. No fee shall be required of a massage technician trainee applicant. The trainee must at all times comply with the laws relating to massage establishments, and the failure to comply may render the trainee ineligible to obtain a massage technician permit. Any massage technician trainee who, during the life of the trainee permit, completes the instruction required of a massage technician, shall be issued a massage technician permit upon payment of a massage technician application fee as set forth in the municipal fee schedule. (Ord. 2960 § 29, 1976: Ord. 2921 §§ 5,9, 1976: Ord. 2833 § 1 (part), 1974) 4.54.100 Appeal. In the event a permit or license application has been denied, the applicant shall proceed pursuant to the appeal and hearing provision in Chapter 4.04. (Ord. 2833 § 1 (part), 1974) 4.54.110 Massage establishment facilities and operations requirements. (a) All massage establishments shall comply with the following facilities and operations requirements: (1) Massage establishments shall comply with all code requirements. (2) A minimum of one tub or shower, and one toilet and wash basin shall be provided in every massage establishment. (3) Cabinets or other covered space shall be provided for the storage of clean linen. Approved receptacles shall be provided for the storage of all soiled linen and paper towels. (4) Minimum ventilation shall be provided in accordance with the building code of the city. To allow for adequate ventilation in cubicles, rooms and areas provided for patrons' use, which are not serviced directly by required window or mechanical systems of ventilation, partitions shall be constructed so that the height of partition does not exceed seventy-five percent of the floor-to-ceiling height of the area in which they are located. (5) All plumbing and electrical installations shall be installed under permit and inspection of the building inspection department, and such installations shall be installed in accordance with the Uniform Building Code and the Uniform Plumbing Code. (6) The walls in all rooms where water or steam baths are given shall have a washable, mold- resistant surface. http://www.amlegal.com/alpscripts/ get -content.aspx 11122/2011 Page 8 of12 (7) All lavatories or wash basins shall be provided with hot and cold running water, soap and single-service towels in wall-mounted dispensers. (8) Security deposit facilities capable of being locked by the patron or a security bag that may be carried by the patron shall be available for the protection of the valuables of the patrons. (9) Every portion of a massage establishment, including appliances, apparatus and personnel, shall be kept clean and operated in a sanitary condition. (10) All massage establishments shall be provided with clean and sanitary towels, sheets and linens in sufficient quantity. Towels, sheets and linens shall not be used by more than one person. Reuse of such linen is prohibited unless the same has fust been laundered. Heavy white paper may be substituted for sheets; provided, that such paper is used once for each person and then discarded into a sanitary receptacle. (11) All walls, ceilings, floors, pools, showers, bathtubs, steam rooms and all other physical facilities for the establishment must be in good repair and maintained in a clean and sanitary condition. Wet and dry heat rooms, steam or vapor rooms, or steam or vapor cabinets, shower compartments and toilet rooms shall be thoroughly cleaned and disinfected each day the business is in operation. Bathtubs shall be thoroughly cleaned and disinfected after each use. (12) Disinfecting agents and sterilizing equipment shall be provided for any instruments used in performing acts of massage and said instruments shall be disinfected and sterilized after each use. (13) Pads used on massage tables shall be covered with durable, washable plastic or other acceptable waterproof materiaL (14) (A) To protect patrons from potential health and sanitary hazards, all employees, massage technicians and massage technician trainees shall be clean and shall perform all services on the premises in full, clean outer garments. (B) Exception. A massage technician may perform services wearing no clothing or wearing less than full outer garments whep teaching a class gathered to learn the theory, practice, or work of massage, and when said class consists in part of massage by the technician or members of the gathered class. (15) Each service offered, the price thereof, and the minimum length of time such service shall be performed shall be posted in a conspicuous public location in each massage establishment. All letters and numbers shall be capitals, and not less than one-half inch in height. (16) (A) Massage establishments shall close and remain closed from eleven p.m. to nine a.m. (B) After one year of operation a massage establishment may be exempted from the hours restrictions of this section by the chief of police upon a written request which details the factual reasons supporting good cause for the exemption. The chief of police, in determining what constitutes good cause for this exemption from the hours restrictions, shall consider and weight the following factors: (i) The criteria outlined in Section 4.04.140 of Chapter 4.04; (ii) The criteria outlined in Section 4.54.030 of this chapter; http://www.am1egal.comlalpscripts/get-content.aspx 1112212011 Page 9 of 12 (iii) The impact which the massage establishment has had on the health, safety, and welfare of the local community, including, but not limited to, parking and traffic congestion; (iv) The massage establishment's compliance or noncompliance with all federal, state, and local laws, including, but not limited to, this municipal code. If, upon review of those factors, the chief of police determines that good cause does exist for the requested exemption, the chief may then exempt the particular massage establishment from the hours restrictions of this section. However, in no event shall any massage establishment close later than two a.m. nor open earlier than six a.m. (C) The exemption from the hours restrictions of this section shall be subject to review and renewal annually at the same time as the renewal ofthe underlying license and the same factual showing shall be made as that required for the initial exemption. The chief shall not grant an hours exemption unless said establishment has maintained the criteria specified in Section 4.54.11 0(a)(16)(B). (17) No massage establishment shall be allowed in the following locations: (A) Within two hundred fifty feet of the exterior property limits of any public or private elementary school, junior high school or high school; (B) Within two hundred fifty feet of the exterior limits of any district where residential use is the principal permitted use, including all R and RM districts, O-S districts, and any P-C or P-F districts where the principal use permitted or maintained is residential; or (C) Within twelve hundred feet of the ex-terior property limits of any other premises lawfully occupied by a massage establish-ment, by any establishment subject to the provisions of Chapter 4.55, any cardroom or hot tub/sauna establishment. For the purpose of determining compliance with this standard, as to, between and with respect to establishments lawfully in operation on the effective date of this section, priority between such existing establishments shall be assigned in accordance with the dates upon which said establishments commenced such lawful operations. All massage establishments lawfully in operation on the effective date of this section shall within sixty days of said date apply to the chief of police for a determination as to compliance with the provisions of this section. Said application shall be in such form as prescribed by the chief of police. Any massage establishment legally existing on the effective date of this subsection and which is not in compliance with the provisions of this subsection shall comply with said provisions on or before May 24, 1987; provided, however, that any such establishment which intends to in any way transfer ownership or alter or change the nature of any such massage establishment on or after the effective date of this subsection shall comply with the provisions of this subsection prior to such transfer, alteration or change. Any such use which at the expiration of said period is not in compliance with the provisions of this subsection shall at that time discontinue and abate its operation. Any massage establishment lawfully in operation upon the effective date of this subsection failing to comply with the provisions of this subsection shall be issued a limited-term license in lieu of its current license, containing a statement on its face reciting such noncompliance and the date by which compliance must be accomplished, and that said license shall not be renewed beyond said date. All distances referred to in this subsection shall be measured between the closest points on the http://www.am1egal.comlalpscripts/get-content.aspx 11122/2011 Page 10 of12 exterior property lines or area boundaries of the parcels or areas involved~ except that when a massage establishment subject to the provisions of this section occupies one unit of a multi-unit structure located on a single parcel~ distances shall be measured from the exterior boundaries of the unit so occupied. (18) Outcall Prohibited. No person shall engage in any of the services permitted under this chapter at any place other than an establishment licensed pursuant to Chapter 4.54, unless the patron possesses and presents a valid prescription or other writing from a licensed physician to the effect that the patron of such services cannot be treated at a licensed massage establishment. A record of every such prescription or other writing shall be obtained and kept by the person rendering the services for a period of one year. Such record shall show the name and address of the doctor, the date, and any prescription number. (Ord. 4642 § 3, 2000: Ord. 3592 § 1, 1985: Ord. 3113 § 6, 1979: Ord. 3095 § I, 1978: Ord. 2946 § 3, 1976: Ord. 2921 § 6, 1976: Ord. 2833 § 1 (part), 1974) 4.54.120 Inspection by officials. Any and all investigating officials of the city shall have the right to enter massage establishments from time to time during regular business hours to make reasonable inspections to observe and enforce compliance with building, fire, electrical, plumbing or health regulations. A warrant shall be obtained whenever required by law. (Ord.2833 § 1 (part), 1974) 4.54.130 Business name. No person licensed to operate a massage establishment shall operate under any name or conduct business under any designation not specified in the license. (Ord. 2833 § 1 (part), 1974) 4.54.140 Business location change. Upon a change of location of a massage establishment, an application to the chief of police shall be made, and such application shall be granted, provided all applicable provisions of this code are complied with and a change oflocation fee as set forth in the municipal fee schedule to defray, in part, the costs of investigation and report, has been paid to the city. (Ord. 2960 § 30, 1976: Ord. 2921 §§ 7, 9, 1976: Ord. 2833 § 1 (part), 1974) 4.54.150 Sale or transfer of massage establishment interest. A sale or transfer of any interest in a massage establishment, which interest would be reported as required in this chapter upon application for a massage establishment license, shall be reported to the chief of police within ten days of such sale or transfer. The chief of police shall investigate any person receiving any interest in a massage establishment as a result of such sale or transfer, and if such person http://www.amlegal.comlalpscripts/get-content.aspx 1112212011 Page 11 of12 satisfies the requirements relating to massage establishment license applicants, the existing license shall be endorsed to include such person. A fee as set forth in the municipal fee schedule shall be paid to the city for the investigation by the chief of police necessitated by each such sale or transfer. (Ord. 2960 § 31,1976: Ord. 2921 §§ 8,9,1976: Ord. 2833 § 1 (part), 1974) 4.54.160 Display of permits, licenses. The owner or operator of a massage establishment shall display the massage establishment license and the permit of each and every massage technician or massage technician trainee employed in the establishment in an open and conspicuous place on the premises. Passport-size photographs of the licensee and permittees shall be affixed to the respective license and permits on display pursuant to this section. Home addresses of massage technicians and massage technician trainees need not be displayed. (Ord. 2833 § 1 (part), 1974) 4.54.170 Exemptions~ (a) This chapter shall not apply to the following classes of individuals while engaged in the performance of the duties of their respective professions: (1) Physicians, surgeons, chiropractors, osteopaths or physical therapists who are duly licensed to practice their respective professions in the state of California; . (2) Nurses registered under the laws of the state of California; (3) Trainers of any amateur, semiprofessional or professional athlete or athletic team; (4) Barbers and beauticians who are duly licensed under the laws of the state of California. (Ord. 2833 § 1 (part), 1974) 4.54.180 Grounds for denial, probation, and disciplinary action. In addition to any provisions of this chapter, the grounds set forth in Section 4.04.140 shall apply to licenses and permits required under this chapter. Any circumstances constituting grounds for denial shall also constitute grounds for revocation, suspension or disciplinary action. (Ord. 3113 § 7,1979: Ord. 2833 § 1 (part), 1974) 4.54.190 Hearing. Any licensee or permittee whose license or permit has been suspended or revoked shall proceed pursuant to the appeal and hearing provisions of Chapter 4.04. http://www.amlegal.com/alpscriptslget-content.aspx 1112212011 Page 12 of 12 (Ord. 2833 § 1 (part)~ 1974) 4.54.200 Application to existing establishments and technicians. All operators of existing massage, bath or health treatment establishments, and all persons engaged in giving massage, bathing and health treatments in the city upon the effective date of this chapter shall comply with all application and other requirements within thirty days following the effective date of this chapter. (Ord. 2833 § 1 (part)~ 1974) 4.54.210 Application of other code provisions. Chapter 4.04 shall apply to the subject matter of this chapter in all respects, including those not specifically mentioned in this chapter. (Ord. 2833 § 1 (part), 1974) Pi~~I~im~G This Code of Ordinances and/or any other documents that appear on this site may not reflect the most current legislation adopted by the Municipality. American Legal Publishing Corporation provides these documents for informational purposes only. These documents should not be relied upon as the definitive authority for local legislation. Additionally, the formatting and pagination of the posted documents varies from the formatting and pagination of the official copy. The official printed copy of a Code of Ordinances should be consulted prior to any action being taken. For further information regarding the official version of any of this Code of Ordinances or other documents posted on this site, please contact the Municipality directly or contact American Legal Publishing toll-free at 800-445-5588. © 2011 American Legal Publishing Corporation techsupport@.~rnLegaJ.com 1.800.445.5588. http://www.amlegal.comlalpscriptslget-content.aspx 11122/2011 Attachment B January 25, 2011 Ideal Health Chiropractic 744 San Antonio Rd., Ste. 10 Palo Alto, California 94303 Dear Mr. ~i!y 9£ Palo Alto Police Department The normal permit renewal process for massage permits has been suspended due to pending changes to Palo Alto's massage ordinance. This letter will serve as your temporary massage technician permit. This permit will allow you to provide massage as an accessory service at Ideal Health Chiropractic, located at 744 San Antonio Rd., Ste. 10, Palo Alto, CA 94303, provided total massage services (other than those based on a diagnosed condition and completed within the scope of a State issued license) do not exceed 25% of the businesses overall activity. It will remain valid until after a new substantially modified massage code is enacted. This temporary permit will terminate at such time as the future massage code indicates as the date certain by which all permittees must have renewed their permits under the authority of the reenacted massage code. Please retain this permit. Until such time as a revised massage ordinance takes effect, massage will continue to be governed by Palo Alto's current Municipal Code Chapter 4.54. You will t;>e advised of meeting dates as the proposed ordinance moves forward. Sincerely, Heather Johnson Code Enforcement Officer Palo Alto Police Department 275 Forest Avenue Palo Alto, CA 94301 Direct: (650) 329-2147 Fax: (650) 326-8819 Email: heather.johnson@cityofpaloalto.org Website: www.city.palo-alto.ca.us/ Cc: Dr. Fax: Printed with soy-based inks on 100% recycled paper processed without chlorine 275 Forest Avenue Palo Alto, CA 94301 650.329.2406 650.329.2565 fax 650.617.3120 Administration fax Attachment C Senate Bill No. 731 CHAPTER 384 An act to add and repeal Chapter 10.5 (commencing with Section 4600) of Division 2 of the Business and Professions Code, relating to massage therapy. [Approved by Governor September 27, 2008. Filed with Secretary of State September 27, 2008.J LEGISLATIVE COUNSEL'S DIGEST SB 731, Oropeza. Massage therapy. Existing law provides for the regulation of various healing arts professionals, including physicians and surgeons, chiropractors, physical therapists, and acupuncturists. Existing law authorizes the legislative body of a city or county to enact ordinances providing for the licensing and regulation of the business of massage when carried on within the city or county. This bill would, commencing September 1, 2009, provide for the certification of massage practitioners and massage therapists by the Massage Therapy Organization, which would be a nonprofit organization meeting specified requirements, and would impose certain duties on the organization. The bill would require applicants for certification to be 18 years of age or older, to meet specified educational criteria, to provide to the organization and update certain information, to provide fingerprints for submission to the Department of Justice for a criminal background check, and to pay fees required by the organization. The bill would require the Department of Justice to review specified information and to provide to the organization fitness determinations and certain other information. The bill would allow the organization to take certain disciplinary action against certificate holders and would require the organization to take certain action with regard to suspending or revoking a certificate if the certificate holder has been alTested for, and charged with, specified crimes. The bill would make it an unfair business practice for a person to state, advertise, or represent that he or she is certified or licensed by a governmental agency as a massage therapist or practitioner, or to make other false representations, as specified. The bill would prohibit a city, county, or city and county from enacting certain ordinances regulating the practice of massage by a certificate holder, as specified. The bill would make its provisions subject to review by the Joint Committee on Boards, Commissions, and Consumer Protection. The bill would repeal these provisions on January 1,2016. 90 Ch.384 2- The people of the State of California do enact asfollows: SECTION 1. It is the intent of this act to create a voluntary certification for the massage therapy profession that will enable consumers to easily identify credible certified massage therapists; assure that certified massage therapists have completed sufficient training at approved schools; phase in increased education and training standards consistent with other states; assure that massage therapy can no longer be used as a subterfuge to violate subdivision (a) or (b) of Section 647 of the Penal Code; and to provide a self-funded nonprofit oversight body to approve certification and education requirements for massage therapists. SEC. 2. Chapter 10.5 (commencing with Section 4600) is added to Division 2 of the Business and Professions Code, to read: CHAPTER 10.5. MASSAGE THERAPISTS 4600. As used in this chapter, the following terms shall have the following meanings: (a) "Approved school" or "approved massage school" means a facility that meets minimum standards for training and curriculum in massage and related subjects and that is approved by any of the following: (1) The Bureau for Private Postsecondary and Vocational Education pursuant to former Section 94739 of the Education Code prior to July 1, 2007, and as of the date on which an applicant met the requirements of paragraph (2) of subdivision (b) or subparagraph (A) of paragraph (2) of subdivision (c) of Section 4601. (2) The Department of Consumer Affairs. (3) An institution accredited by the Accrediting Commission for Senior Colleges and Universities or the Accrediting Commission for Community and Junior Colleges of the Western Association of Schools and Colleges and that is one of the following: (A) A public institution. (B) An institution incorporated and lawfully operating as a nonprofit public benefit corporation 'pursuant to Part 2 (commencing with Section 511 0) of Division 2 of Title 1 of the Corporations Code, and that is not managed by any entity for profit. (C) A for-profit institution. (D) An institution that does not meet all of the criteria in subparagraph (B) that is incorporated and lawfully operating as a nonprofit public benefit corporation pursuant to Part 2 (commencing with Section 511 0) of Division 2 of Title 1 of the Corporations Code, that has been in continuous operation since April 15, 1997, and that is not managed by any entity for profit. (4) A college or university of the state higher education system, as defined in Section 100850 of the Education Code. 90 -3 Ch.384 (5) A school of equal or greater training that is approved by the corresponding agency in another state or accredited by an agency recognized by the United States Department of Education. (b) "Compensation" means the payment, loan, advance, donation, contribution, deposit, or gift of money or anything of value. (c) "Massage therapist," "bodyworker," "bodywork therapist," or "massage and bodywork therapist" means a person who is certified by the Massage Therapy Organization under subdivision (c) of Section 460 I and who administers massage for compensation. (d) "Massage practitioner," "bodywork practitioner," or "massage and bodywork practitioner" means a person who is certified by the Massage Therapy Organization under subdivision (b) of Section 460 I and who administers massage for compensation. (e) "Organization" means the Massage Therapy Organization created pursuant to this chapter, which shall be a nonprofit organization exempt from taxation under Section 50 I (c )(3) ofTitle 26 of the United States Code. The organization may commence activities as authorized by this section once it has submitted a request to the Internal Revenue Service seeking this exemption. (f) "Registered school" means a facility that meets minimum standards for training and curriculum in massage and related subjects and that either was recognized by the Bureau for Private Postsecondary and Vocational Education pursuant to Section 94931 of the Education Code prior to July 1,2007, and as of the date on which an applicant met the requirements of paragraph (2) of subdivision (b) or subparagraph (A) of paragraph (2) of subdivision (c) of Section 460 I, or is recognized by the Department of Consumer Affairs, by an institution accredited by the senior commission or the junior commission of the Western Association of Schools and Colleges as defined in paragraph (2) of subdivision (a) of Section 4600, by a college or university of the state higher education system as defined in Section 100850 of the Educatiol1 Code, or by a school of equal or greater training that is approved by the corresponding agency in another state. (g) For purposes of this chapter, the terms "massage" and "bodywork" shall have the same meaning. 4600.5. (a) A Massage Therapy Organization, as defined in subdivision (e) of Section 4600, shall be created and shall have the responsibilities and duties set forth in this chapter. The organization may take any reasonable actions to carry out the responsibilities and duties set forth in this chapter, including, but not limited to, hiring staff and entering into contracts. (b) (1) The organization shall be governed by a board of directors made up oftwo representatives selected by each professional society, association, or other entity, whose membership is comprised of massage therapists and that chooses to participate in the organization. To qualify, a professional society, association, or other entity shall have a dues-paying membership in California of at least 1 ,000 individuals for the last three years, and shall have bylaws that require its members to comply with a code of ethics. The board of directors shall also include each of the following persons: 90 [ I 11 I I I Ch.384 4- (A) One member selected by each statewide association of private postsecondary schools incorporated on or before January 1, 2010, whose member schools have together had at least 1,000 graduates in each of the previous three years from massage therapy programs meeting the approval standards set forth in subdivision (a) of Section 4600, except from those qualifying associations that choose not to exercise this right of selection. (B) One member selected by the League of California Cities, unless that entity chooses not to exercise this right of selection. (C) One member selected by the California State Association of Counties, unless that entity chooses not to exercise this right of selection. (D) One member selected by the Director of Consumer Affairs, unless that entity chooses not to exercise this right of selection. (E) One member appointed by the California Community College Chancellor's Office, unless that entity chooses not to exercise this right of selection. The person appointed, if any, shall not be part of any massage therapy certificate or degree program, The organization's bylaws shall establish a process for appointing other professional directors as determined by the board. (2) The initial board of directors shall establish the organization, initiate the request for tax-exempt status from the Internal Revenue Service, and solicit input from the massage community concerning the operations of the organization. The initial board of directors, in its discretion, may immediately undertake to issue the certificates authorized by this chapter after adopting the necessary bylaws or other rules, or may establish by adoption of bylaws the pennanent governing structure prior to issuing certificates. (c) The board of directors shall establish fees reasonably related to the cost of providing services and carrying out its ongoing responsibilities and duties. Initial and renewal fees shall be established by the board of directors annually, (d) The meetings of the organization shall be subject to the rules of the Bagley-Keene Open Meetings Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Goverrunent Code). , 4601. (a) The organization shall issue a certificate under this chapter to an applicant who satisfies the requirements of this chapter. (b) (1) In order to obtain certification as a massage practitioner, an applicant shall submit a written application and provide the organization with satisfactory evidence that he or she meets all of the following requirements: (A) The applicant is 18 years of age or older, (B) The applicant has sllccessfully completed, at a single approved school, curricula in massage and related subjects totaling a minimum of 250 hours that incorporates appropriate school assessment of student knowledge and skills. Included in the hours shall be instruction addressing anatomy and physiology, contraindications, health and hygiene, and business and ethics, with at least 100 hours of the required minimum 250 hours devoted to these curriculum areas, 90 -5-Ch.384 (C) All fees required by the organization have been paid. (2) New certificates shall not be issued pursuant to this subdivision after December 31,201 S. Certificates issued pursuant to this section or subdivision (a) or (c) of Section 4604 on or before December 31, 2015, shall, after December 31, 2015, be renewed without any additional educational requirements, provided that the certificate holder continues to be qualified pursuant to this chapter. (c) In order to obtain certification as a massage therapist, an applicant shall submit a written application and provide the organization with satisfactory evidence that he or she meets all of the following requirements: (1) The applicant is 18 years of age or older. (2) The applicant satisfies at least one of the following requirements: (A) He or she has successfully completed the curricula in massage and related subjects totaling a minimum of 500 hours. Of this 500 hours, a minimum of250 hours shall be from approved schools. The remaining 250 hours required may be secured either from approved or registered schools, or from continuing education providers approved by, or registered with, the organization or the Department of Consumer Affairs. After December 31, 2015, applicants may only satisfy the curricula in massage and related subjects from approved schools. (B) The applicant has passed a massage and bodywork competency assessment examination that meets generally recognized psychometric principles and standards, and that is approved by the board. The successful completion of this examination may have been accomplished before the date the organization is authorized by this chapter to begin issuing certificates. (3) All fees required by the organization have been paid. (d) The organization shall issue a certificate to an applicant who meets the other qualifications of this chapter and holds a current and valid registration, certification, or license from any other state whose licensure requirements meet or exceed those defined within this chapter. The organization shall have discretion to give credit for comparable academic work completed by an applicant in a program outside of California. ( e) An applicant applying for a massage therapist or massage practitioner certificate shall file with the organization a written application provided by the organization, showing to the satisfaction of the organization that he or she meets all of the requirements of this chapter. (f) Any certification issued under this chapter shall be subject to renewal every two years in a manner prescribed by the organization, and shall expire unless renewed in that manner. The organization may provide for the late renewal of a license. (g) (1) The organization shall have the responsibility to detennine that the school or schools from which an applicant has obtained the education required by this chapter meet the requirements of this chapter. If the organization has any reason to question whether or not the applicant received the education that is required by this chapter from the school or schools that the applicant is claiming, the organization shall investigate the facts to 90 Ch.384 -6- determine that the applicant received the required education prior to issuing a certificate, (2) For purposes of paragraph (1) and any otheq)rovision ofthis chapter for which the organization is authorized to receive factual information as a condition of taking any action, the organization shall have the authority to conduct oral interviews of the applicant and others or to make any investigation deemed necessary to establish that the information received is accurate and satisfies any criteria established by this chapter, 4601.2, No certificates shall be issued by the organization pursuant to this chapter prior to September 1, 2009, 4601.3, (a) Prior to issuing a certificate to the applicant or designating a custodian of records, the organization shall require the applicant or the custodian of records candidate to submit fingerprint images in a form consistent with the requirements of this section, The organization shall submit the fingerprint images and related information to the Department of Justice for the purpose of obtaining information as to the existence and nature of a record of state and federal level convictions and of state and federal level arrests for which the Department of Justice establishes that the applicant or candidate was released on bailor on his or her own recognizance pending triaL Requests for federal level criminal offender record infonnation received by the Department of Justice pursuant to this section shall be forwarded to the Federal Bureau of Investigation by the Department of Justice, The Department of Justice shall review the information returned from the Federal Bureau ofInvestigation, and shall compile and disseminate a fitness determination regarding the applicant or candidate to the organization, (b) The Department of Justice shall provide information to the organization pursuant to subdivision (p) of Section 11105 of the Penal Code. (c) The Department of Justice and the organization shall charge a fee sufficient to cover the cost of processing the request for state and federal level criminal offender record information. (d) The organization shall request subsequent arrest notification service from the Department of Justice, as provided under Section 11105.2 of the Penal Code, for all applicants for licensure or custodian of records candidates for whom fingerprint images and related information are sllbmitted to conduct a search for state and federal level criminal offender record information. (e) This section shall become operative September 1,2009, 4601.4. Organization directors, employees, or volunteer individuals may undergo the background investi gation process delineated in Section 4601,3, 4602. (a) The organization may discipline a certificate holder by any, or a combination, of the following methods: (1) Placing the certificate holder on probation. (2) Suspending the certificate and the rights conferred by this chapter on a certificate holder for a period not to exceed one year, (3) Revoking the certificate. 90 -7 Ch.384 (4) Suspending or staying the disciplinary order, or portions of it, with or without conditions. (5) Taking other action as the organization, as authorized by this chapter or its bylaws, deems proper. (b) The organization may issue an initial certificate on probation, with specific terms and conditions, to any applicant. (c) (1) Notwithstanding any other provision of law, if the organization receives notice that a certificate holder has been arrested and charges have been filed by the appropriate prosecuting agency against the certificate holder alleging a violation of subdivision (b) of Section 647 of the Penal Code or any other offense described in subdivision (h) of Section 4603, the organization shall take all of the following actions: (A) Immediately suspend, on an interim basis, the certificate of that certificate ho lder. (B) Notify the certificate holder within 10 days at the address last filed with the organization that the certificate has been suspended, and the reason for the suspension. (C) Notify any business within 10 days that the organization has in its records as employing the certificate holder that the certificate has been suspended. (2) Upon notice to the organization that the charges described in paragraph (1) have resulted in a conviction, the suspended certificate shall become subject to permanent revocation. The organization shall provide notice to the certificate holder within 10 days that it has evidence of a valid record of conviction and that the certificate will be revoked unless the certificate holder provides evidence within 15 days that the conviction is either invalid or that the information is otherwise erroneous. (3) Upon notice that the charges have resulted in an acquittal, or have otherwise been dismissed prior to conviction, the certificate shall be immediately reinstated and the certificate holder and any business that received notice pursuant to subparagraph (C) of paragraph (1) shall be notified of the reinstatement within 10 days. 4602.5. (a) Upon the request of any law enforcement agency or any other representative of a local government agency with responsibility for regulating, or administering a local ordinance relating to, massage or massage businesses, the organization shall provide information concerning a certificate holder, including, but not limited to, the current status of the certificate, any history of disciplinary actions taken against the certificate holder, the home and work addresses of the certificate holder, and any other information in the organization's possession that is necessary to verify facts relevant to administering the local ordinance. (b) The organization shall accept information provided by any law enforcement agency or any other representative of a local government agency with responsibility for regulating, or administering a local ordinance relating to, massage or massage businesses. The organization shall have the responsibility to review any information received and to take any actions authorized by this chapter that are warranted by that information. 90 Ch.384 -8 4603. It is a violation of this chapter for a certificate holder to commit, and the organization may deny an application for a certificate or discipline a certificate holder for, any of the following: (a) Unprofessional conduct, including, but not limited to, denial of licensure, revocation, suspension, restriction, or any other disciplinary action against a certificate holder by another state or territory of the United States, by any other government agency, or by another California health care professional licensing board. A certified copy of the decision, order, or judgment shall be conclusive evidence of these actions. (b) Procuring a certificate by fraud, misrepresentation, or mistake. (c) Violating or attempting to violate, directly or indirectly, or assisting in or abetting the violation of, or conspiring to violate, any provision or term of this chapter or any rule or bylaw adopted by the organization. (d) Conviction of any felony, or conviction of a misdemeanor that is substantially related to the qualifications or duties of a certificate holder, in which event the record of the conviction shall be conclusive evidence of the crime. (e) Impersonating an applicant or acting as a proxy for an applicant in any examination referred to under this chapter for the issuance of a certificate. (f) Impersonating a certified practitioner or therapist, or permitting or allowing an uncertified person to use a certificate. (g) Committing any fraudulent, dishonest, or corrupt act that is substantially related to the qualifications or duties of a certificate holder. (h) Committing any act punishable as a sexually related crime. 4603.1. (a) No certificate holder or certificate applicant may be disciplined or denied a certificate pursuant to Section 4603 except according to procedures satisfying the requirements of this section. A denial or discipline not in accord with this section or subdivision (c) of Section 4602 shall be void and without effect. (b) Any certificate applicant denial or certificate holder discipline shall be done in good faith and in a fair and reasonable manner. Any procedure that conforms to the requirements of subdivision (c) is fair and reasonable, but a court may also find other procedures to be fair and reasonable when the full circumstances of the certificate denial or certificate holder discipline are considered. (c) A procedure is fair and reasonable when the procedures in subdivision (c) of Section 4602 are followed, or if all of the following apply: (1) The provisions of the procedure have been set forth in the articles or bylaws, or copies of those provisions are sent mmually to all the members as required by the articles or bylaws. (2) It provides the giving of 15 days prior notice of the certificate denial . or certificate holder discipline and the reasons therefor. (3) It provides an opportunity for the certificate applicant or certificate holder to be heard, orally or in writing, not less than five days before the effective date of the certificate denial or certificate holder discipline by a 90 9 Ch.384 person or body authorized to decide that the proposed certificate denial or certificate holder discipline not take place. (d) Any notice required under this section may be given by any method reasonably calculated to provide actual notice. Any notice given by mail must be given by first-class or certified mail sent to the last address of the certificate applicant or certificate holder shown on the organization's records. (e) Any action challenging a certificate denial or certificate holder discipline, including any claim alleging defective notice, shall be commenced within one year after the date of the certificate denial or certificate holder discipline. Ifthe action is successful, the court may order any relief, including reinstatement, that it finds equitable under the circumstances. (1) This section governs only the procedures for certificate denial or certificate holder discipline and not the substantive grounds therefor. A certificate denial or certificate holder discipline based upon substantive grounds that violates contractual or other rights of the member or is otherwise unlawful is not made valid by compliance with this section. (g) A certificate applicant or certificate holder who is denied or disciplined shall be liable for any charges incurred, services or benefits actually rendered, dues, assessments, or fees incurred before the certificate denial or certificate holder discipline or arising from contract or otherwise. 4603.5. It shall be the responsibility of any certificate holder to notify the organization of his or her home address, as well as the address of any business establishment where he or she regularly works as a massage therapist or massage practitioner, whether as an employee or as an independent contractor. A certificate holder shall notify the organization within 30 days of changing either his or her home address or the address of the business establishment where he or she regularly works as a massage therapist or massage practitioner. 4604. (a) Notwithstanding Section 4601, the organization may grant a massage practitioner certificate to any person who applies on or before January 1, 2012, with one of the following: (1) A current valid massage permit or license from a California city, county, or city and county and documentation evidencing that the person has completed at least a 100-hour course in massage at a state-approved or registered school, or out-of-state school recognized by the organization as providing comparable education, has been practicing for at least three years, and has provided at least 1,000 hours of massage to members of the public for compensation. (2) Documentation evidencing that the person has completed at least a 100-hour course in massage at a state-approved or registered school, or out-of-state school recognized by the organization as providing comparable education, has been practicing for at least three years, and has provided at least 1,750 hours of massage to members of the public for compensation. For purposes of this subdivision, evidence of practice shall include either of the following: (A) A W-2 form or employer's affidavit containing the dates of the applicant's employment 90 Ch.384 -10- (B) Tax returns indicating self-employment as a massage practitioner or massage therapist or any other title that may demonstrate experience in the field of massage. (3) Documentation evidencing that the person holds a current valid certificate of authorization as an instructor at an approved massage school, or holds the position of a massage instructor at a school accredited by an agency recognized by the United States Department of Education, or colleges and universities of the state higher education system, as defined in Section 100850 of the Education Code. (b) (1) After reviewing the information submitted under subdivision (a), the organization may require additional information necessary to enable it to determine whether to issue a certificate. (2) If an applicant under paragraph (1) of subdivision (a) or paragraph (1) of subdivision (c) has not complied with Section 4601.3, or its equivalent, when obtaining a license or permit from the city, county, or city and county, the organization shall require the applicant to comply with Section 4601.3 prior to issuing a certificate pursuant to this section. (c) (1) A person applying for a massage practitioner certificate on or before January 1,2012, who meets the educational requirements of either paragraph (1) or (2) of subdivision (a), but who has not completed the required number of practice hours prior to submitting an application pursuant to this section, may apply for a conditional certificate. (2) An applicant for a conditional certificate shall, within five years of being issued the conditional certificate, be required to complete at least 30 hours of additional education per year from schools or courses described in paragraph (5) until he or she has completed a total of at least 250 hours of education, which may include massage education hours previously completed in a massage course described in either paragraph (1) or (2) of subdivision (a). (3) Upon successful completion of the requirements ofthis subdivision, the organization shall issue a certificate to the person that is not conditional. (4) The organization shall immediately revoke the conditional certificate issued to any person pursuant to this subdivision if the time period specified in paragraph (2) expires without proof of completion of the requirements having been filed with the organization. (5) Any additional education required by this section may be completed through courses provided by any of the following: (A) An approved school. (B) A registered school. (C) A provider approved by, or registered with, the organization or the Department of Consumer Affairs. (D) A provider that establishes to the satisfaction of the organization that its course or courses are appropriate educational programs for this purpose. (d) Nothing in this section shall preclude the organization from exercising any power or authority conferred by this chapter with respect to a conditional certificate holder. 90 I -11 Ch.384 4605. It is an unfair business practice for any person to state or advertise or put out any sign or card or other device, or to represent to the public through any print or electronic media, that he or she is certified, registered, or licensed by a governmental agency as a massage therapist or massage practitioner. 4606. It is an unfair business practice for any person to hold oneself out or use the title of "certified massage therapist" or "certified massage practitioner" or any other term, such as "licensed," "registered," or "CMT;' that implies or suggests that the person is certified as a massage therapist or practitioner without meeting the requirements of Section 4601 or 4604. 4607. The superior court in and for the county in which any person acts as a massage practitioner or massage therapist in violation ofthe provisions of this chapter, may, upon a petition by any person, issue an injunction or other appropriate order restraining the conduct. The proceedings under this paragraph shall be governed by Chapter 3 (commencing with Section 525) of title 7 of Part 2 of the Code of Civil Procedure. 4608. Nothing in this chapter is intended to limit or prohibit a person who obtains a certification pursuant to this chapter from providing services pursuant to, and in compliance with, Sections 2053.5 and 2053.6. 4612. (a) (1) The holder of a certificate issued pursuant to this chapter shall have the right to practice massage, consistent with this chapter and the qualifications established by his or her certification, in any city, county, or city and county in this state and shall not be required to obtain any other license, pyrmit, or other authorization, except as provided in this section, to engage in that practice. (2) Notwithstanding any other provision of law, a city, county, or city and county shall not enact an ordinance that requires a license, permit, or other authorization to practice massage by an individual who is certified pursuant to this chapter and 'who is practicing consistent with the qualifications established by his or her certification. No provision of any ordinance enacted by a city, county, or city and county that is in effect before the effective date of this chapter, and that requires a license, permit, or other authorization to practice massage, may be enforced against an individual who is certified pursuant to this chapter. (3) Except as provided in subdivision (b), nothing in this section shall be interpreted to prevent a city, county, or city and county from adopting or enforcing any local ordinance governing zoning, business licensing, and reasonable health and safety requirements for massage establishments or businesses. Subdivision (b) shall not apply to any massage establishment or business that employs or uses persons to provide massage services who are not certified pursuant to this chapter. (b) (1) This subdivision shall apply only to massage establishments or businesses that are sole proprietorships, where the sole proprietor is certified pursuant to this chapter, and to massage establishments or businesses that employ or use only persons ce11ified pursuant to this chapter to provide massage services. For purposes ofthis subdivision, a sole proprietorship is 90 Ch.384 -12 a business where the owner is the only person employed by that business to provide massage services. (2) (A) Any massage establishment or business described in paragraph (1) shall maintain on its premises evidence for review by local authorities that demonstrates that all persons providing massage services are certified. (B) Nothing in this section shall preclude a city, county, or city and county from induding in a local ordinance a provision that requires a business described in paragraph (1) to file copies or provide other evidence of the certificates held by the persons who are providing massage services at the business. (3) A city, county, or city and county may charge a massage business or establishment a business licensing fee sufficient to cover the costs of the business licensing activities established by a local ordinance described in this section. (4) Nothing in this section shall prohibit a city, county, or city and county from adopting land use and zoning requirements applicable to massage establishments or businesses, provided that these requirements shall be no different than the requirements that are uniformly applied to other professional or personal services businesses. (5) Local building code or physical facility requirements applicable to massage establishments or businesses shall not require additional restroom, shower, or other facilities that are not uniformly applicable to other professional or personal service businesses, nor shall building or facility requirements be adopted that (A) require unlocked doors when there is no staff available to assure security for clients and massage staff who are behind closed doors, or (B) require windows that provide a view into massage rooms that interfere with the privacy of clients of the massage business. (6) A city, county, or city and county may adopt reasonable health and safety requirements with respect to massage establishments or businesses, including, but not limited to, requirements for cleanliness of massage rooms, towels and linens, and reasonable attire and personal hygiene requirements for persons providing massage services, provided that nothing in this paragraph shall be interpreted to authorize adoption of local ordinances that impose additional qualifications, such as medical examinations, background checks, or other criteria, upon any person certified pursuant to this chapter. (7) Nothing in this section shall preclude a city, county, or city and county from doing any of the following: (A) Requiring an applicant for a business license to operate a massage business or establishment to fill out an application that requests the applicant to provide relevant information. (B) Making reasonable investigations into the information so provided. (C) Denying or restricting a business license ifthe applicant has provided materially false information. (c) An owner or operator of a massage business or establishment subject to subdivision (b) shall be responsible for the conduct of all employees or independent contractors working on the premises of the business. Nothing in this section shall preclude a local ordinance from authorizing suspension, 90 13 Cb.384 revocation, or other restriction of a license or permit issued to a massage establishment or business if violations of this chapter, or of the local ordinance, occur on the business premises. (d) Nothing in this section shall preclude a city, county, or city and county from adopting a local ordinance that is applicable to massage businesses or establishments described in paragraph (1) of subdivision (b) and that does either of the following: (1) Provides that duly authorized officials of the city, county, or city and county have the right to conduct reasonable inspections, during regular business hours, to ensure compliance with this chapter, the local ordinance, or other applicable fire and health and safety requirements. (2) Requires an owner or operator to notify the city, county, or city and county of any intention to rename, change. management, or convey the business to another person. 4613. (a) Nothing in this chapter shall restrict or limit in any way the authority of a city, county, or city and county to adopt a local ordinance governing any person who is not certified pursuant to this chapter. (b) Nothing in this chapter is intended to affect the practice rights of any person licensed by the state to practice or perform any functions or services pursuant to that license. 4615. This chapter shall be subject to the review required by Division 1.2 (commencing with Section 473). 4620. This chapter shall remain in effect only until January 1,2016, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2016, deletes or extends that date. o 90 I Attachment D Ii DIVISON 2 OF THE BUSINESS AND PROFESSIONS CODE. CHAPTER 10.5. SECTION 460Q GUIDE DEVELOPED BY THE CALIFORNIA MASSAGE THERAPY COUNCIL 4600 ....................................................................................... Meanings of Terms 4600.S ............................................... Massage Therapy Organization (CAMTC) 4601 ............................................................... .Issuance of Massage Certificates 4601.2.., ................................................................................. September 1, 2009 4601.3 .................................................................................. OOJ and FBI Reports 4602 .................................................... CAMTC Disciplinary & Denial Authority 4602.5 .. " ................................ CAMTC & Municipalities Information Exchange 4603 ................................................ Causes for Denials or Disciplinary Actions 4603.5 ............................................................... Change of Address Notification 4604 ......................................................... Grandfathering Prior to January 1, 2012 4605 .............................................................................. Unfair Business Practice 4606 .................................................................................. · .... CMT and CMPTitle 4607 ....................................................... " ................................... Court Restraint 4608 ..................................................................... Freedom to Provide Services 4612 (a) (1 & 2) ......................................... Exemption from Local Ordinances 4612 (a) (3} ..................................................................... Municipalities' Rights 4612 (b) (1) ............................................................ Establishment Exemptions 4612 (2) (A) .................................................. Proof of Certificates on Premises 4612 (2) (B) .................................................. Register with Local Municipality 4612 (3) ............................................................................ Business License Fee 4612 (4) ............................................................ Uniform Land Use and Zoning 4612 (S) ........................................................................ Uniform Building Code 4612 (6) ....................................... Reasonable Health & Safety Requirements 4612 (7) (A, B, & CJ ................... Municipal Business License & Investigation 4612 (7) (c) ...................................... Owner Responsible for Conduct of Staff 4612 (7) (d) (1) .................................... : ............ Municipality Right to Inspect 4612 (7) (d) (2) ................... Owner Notification to Municipality of Changes 4613 ..................................... Municipal Governance of Non-Certified Person 4615 ....................................................... 11 .............. Chapter Subj ect to Review 4620 ............................................................................ Sunset January 1, 2016 California Massage Therapy Council \ cg,mt~..@aJ.1.'llQ.:~:)Up~.us I (916) 669-5336\ www.camtc.org REGULATION OF MASSAGE BUSINESSES UNDER B&P SECTION 4600 (SB 731) Cities still have some authority over massage businesses even if all of the therapists are certified -it gives the cities information about the true owners, provides for business licensing, and gives the cities a means of confirming that the therapists are indeed certified .. On the zoning and land use side, it puts massage businesses on par with other businesses that provide personal and professional services. The key lies in Section 4612. Section 4612(a) provides that local authorities can't require a license or permit to practice massage by an individual already certified by the CAMTC. A city or county can still adopt a local ordinance governing zoning, business licensing, and reasonable health and safety requirements for massage establishments and massage businesses. But, Section 4612 provides some important rules of the road when a business has taken the time to hire only therapists certified by the CAMTC. The rules go both ways -the establishment must do some things and the local authorities must give on some things. So, here it is. If an establishment or business employs ONLY persons certified by the CAMTC, the following applies: • Section 4612 (b) 2 (A) The establishmentlbusiness must maintain on its premises, and available to local authorities, evidence demonstrating that all persons providing massage are certified by the CAMTC. • Section 4612 (b) 2 (B) The city or county can require the establishmentlbusiness to file copies or other evidence of certificates held by persons providing massage. • Section 4612(b)3 The city or county can charge an establishmentlbusiness a business licensing fee to cover the costs of business licensing activities described here. Section 4612(b)4 The city or county can have land use and zoning requirements applicable to massage establishments as long as the requirements are no different than requirements that are uniformly applicable to other professional or personal service businesses. .. Section 4612(b)5 Local building code or facility requirements applicable to establishments can't require additional restrooms, shower, or other facilities that aren't uniformly applicable to other professional or personal service businesses -nor can the requirements be such that there are unlocked doors when no staff is available to assure security for clients and employees or require windows with a view into massage rooms. Page 10f2 Section 4612(b)6 The city or county can adopt reasonable health and safety requirements, including requirements for cleanliness of rooms, towels and linens, and reasonable attire and personal hygiene requirements for therapists (but can't interpret this to authorize medical exams, background checks or other criteria on CAMTC .. certified therapists) .. • Section 4612(b) 7 (A-C) The city or county CAN still require an application for a business license to operate a massage business or massage establishment and can require completion of an application requesting relevant information.. The city or county can make reasonable investigation into the information so provided and deny or restrict a business license if the applicant provided materially false information. • Section 4612 (c) provides that a massage establishment owner or operator is responsible for the conduct of all employees or independent contractors on its premises. A local ordinance can authorize suspension, revocation or other restriction of a business license issued to a massage business/establishment if a violation of the state law or local ordinance occurs on the premises. San Rafael is requiring a "certificate of exemption" for massage businesses in which all therapists are CAMTC certified. If illicit activities occur on the premises, the· owner, who is held responsible, can lose the certificate. Once the certificate is revoked, the business is subject to all establishment regulations required of non-exempt massage businesses. This makes it easier to close the business than red light abatement. Cotati is proposing a "zoning waiver" which will provide the same type of protection for the city. Pacifica requires all CAMTC certified massage therapists to register with the city .. •. CMT's and CMP' s are required to notify the CAMTC within 30 days of any change of work or home status .. Once the information is received, notice goes out to the registered city contact. Page 2of2 ., . .~ CALIFORN IA ~~ tv-\r\.sS.I\G!: THERAPY COUNCIL MEETS STANDARDS CURRENTLY ESTABLISHED BY CITIES AND COUNTIES AND ALSO BENEFITS CITIES AND COUNTIES: I. Meets Standards Established by Cities and Counties: • • • • • • • • Applicants for state certification undergo criminal background checks including fingerprints. (Section 4601 .3(a». CAMTC is mandated to request subsequent arrest notification service from the Department of Justice for all applicants for licensure for whom fmgerprints are submitted. (Section 4601.3(d». CAMTC is authorized to investigate the education of applicants, including their certificates of completion (transcripts), and to reject those it determines to be fraudulent. CAMTC may also request additional information regarding an applicant's education if a transcript from a particular school is not deemed sufficient proof of adequate education.. (Section 4601(g)(1) and (2». CAMTC is authorized to discipline certificate holders through probation, suspension, revocation, or other means it deems proper. (Section 4601(a». CAMTC is required to permanently revoke the certificate of anyone violating subdivision (b) of Section 647 of the Penal Code of any offense described in subdivision (h) of Section 4603. The law requires the CAMTC to immediately suspend the certificate, notify the certificate holder and any business employing the certificate holder of such suspension. Upon notice that the charges have resulted in a conviction, the CAMTC has authority to revoke the certificate. (Section 4602(c». CAMTC is authorized to deny or revoke certificates for unprofessional conduct, including, but not limited to, denial of licensure, revocation, suspension, restriction, or any other disciplinary action against a certificate holder by another state or territory of the United States, by any other government agency, or by another California health care professional licensing board. A certified copy of the decision, order, or judgment shall be conclusive evidence of these actions. (Section 4603(a». CAMTC may also deny or revoke a certificate for the following: procuring a certificate by fraud, misrepresentation, or mistake; violating or attempting to violate, directly or indirectly, or assisting in or abetting the violation of, or conspiring to violate, any provision or term of the law or any rule or bylaw adopted by the organization; conviction of any felony, or conviction of a misdemeanor that is substantially related to the qualifications or duties of a certificate holder, in which event the record of the conviction shall be conclusive evidence of the crime; impersonating an applicant or acting as a proxy for an applicant in any examination referred to under the law for the issuance of a certificate; impersonating a certified pmctitioner or therapist, or permitting or allowing an uncertified person to use a certificate; committing any fraudulent, dishonest, or COlTIlpt act that is substantially related to the qualifications or duties of a certificate holder; committing any act punishable as a sexually related crime. (Section 4603(a)-(h)). It is an unfair business practice to state that one is certified, registered or licensed by a governmental agency (the CAMTC is a private not-for-profit with legislative oversight) as a massage therapist or practitioner. (Section 4605). It is an unfair business practice for any person to hold oneself out or use the title of "certified massage therapist" or "certified massage practitioner" or any other term, such as "licensed," "registered," or "CMT," that implies or suggests that the person is certified as a massage therapist or practitioner without meeting the requirements of the law. (Section 4606). Page 1 of2 II. Allows Cities and Counties to Know Who is Practicing in Their Jurisdiction: • • • Section 4600 gives CAMTC broad authority to share information with local authorities. The CAMTC is authorized to provide to local authorities information concerning a certificate holder, including but not limited to, the current status of the certificate holder, address of the certificate holder (home and work), history of disciplinary actions against the certificate holder (including revocation), and any other information necessary to verify facts relevant to administering a local ordinance (Section 4602.5(a». CAMTC must also accept information provided by local authorities, and has a responsibility to review information received and take action warranted by that information. (Section 4602.5(b». CAMTC is required to request subsequent arrest notification service from the Department of Justice for all applicants for licensure. (Section 4601.3(d». CAMTC can share this information with local authorities, as stated above. In. Important Authority Retained by Cities and Counties under SECTION 4600 • Cities and counties retain authority over any person not certified pursuant to Section 460'0. (Section 4613(a». • • • • • • • • Section 4600 specifies that the superior court in and for the county in which any person acts as a massage practitioner or massage therapist in violation ofthe provisions of the law, may, upon a petition by any person, issue an injunction or other appropriate order restraining the conduct. The proceedings under this paragraph . shall be governed by Chapter 3 (commencing with Section 525) ofTitle 7 of Part 2 of the Code of Civil Procedure. (Section 4607). A city or county may adopt reasonable health and safety requirements with respect to massage establishments or businesses, including, but not limited to: (Section 4612(b)(6» . .( Cleanliness of rooms .( Cleanliness of towels and linens ./ Reasonable attire and personal hygiene requirements A city or cOlmty may require an applicant for a business license to operate a massage establishment to fill out an application providing relevant infonnation and make reasonable investigation into the information provided. (Section 4612(b )(7)). Local authorities can deny or restrict a business license if the applicant has provided materially false information (Section 4612(b )(7). The owner/operator of a massage establishment is responsible for the conduct of all employees or independent contractors working on the premises. Local authorities can still suspend, revoke or otherwise restrict the license issued to a massage establishment for violations of Section 4600 or local ordinances. (Section 4612(c». Local authorities may have and enforce an ordinance that is applicable to massage businesses or establishments that provides duly authorized officials of the city or county the right to conduct reasonable inspections during regular business hours, to ensure compliance with the law, the local ordinance, or other applicable fire and health and safety requirements. Such ordinances may require an owner or operator to notify the city or county of any intention to rename, change management, or convey the business to another person. (Section 4612( d». Local authorities may require a massage establishment to maintain on its premises for review evidence demonstrating that all persons providing massage services are certified. A local authority may require a business to file copies or provide other evidence of the certificates held by persons providing massage services at the business. Section 4612(b)(2)(A)-(B). Cities and counties may adopt land use and zoning requirements applicable to massage establishments provided that the requirements are no different than those uniformly applied to other professional or personal services businesses. (Section 4612(b)«4». Page 2 of2 CAMTC Review Process Professional Standards Division Application Sent to P5D for Review P5D Reviews and Makes a Factual Finding Evidence Standard is No CALIFORNIA. MASSAGE T.HERAPY COUNCIL www.camtc.org More Probable rhan Not >-----------------., Yes Memo to Coun sel Drafted by P5D Proposed Denial Letmr Sent by Counsel to Applicant Hearing Requested (0131 or Written) P5D Holds Denial Hearing Proposed Denial is Upheld Final Letter of Denial is 5ent by Counsel Applicant May Reapply After One Year No No No Denial Automatically Effective Notify 5taff of Denial Return to Staff for Processing California Massage Therapy Council lOne Ca-eitol Mall, Suite 320 I Sacramento, CA 95814 I 916.669.53361 www.camtc.org tet < •• \ RE~{"'fll 11 n c ~ A r' t\"'f",' ]::(""')R CC It-A 'I' CE'Rl-IF~ CA'l"ION ~~ f\.LfvLtJ J 1 ._, , ;, .... JVl , .. ,11 • 1 _,_ .,' Starting January 31,2011, applicants seeking a Conditional CMP (CCMP) certificate with 100- 249 hours of massage education completed after March 15, 2010, must submit a transcript from an approved school whose 100 .. 249 hour entry-level program was specifically approved by BPPE or BPPVE. Please note that no applications for CCMP certification will be accepted after December 31, 2011. Starting January 1, 2012, all applicants will need a minimum of 250 hours of massage education at an approved school to be considered for CAMTC certification. In order to maintain your Conditional Certification as a Massage Practitioner (CCMP), you are required to provide evidence of a minimum of 30 hours of continuing massage education each year, until your total massage education totals 250 hours. Once you have completed a minimum of 250 hours of massage education, you must apply for an upgrade to CMP. You may apply for an upgrade at the time you reach 250 hours or at the time of your next renewal. If you are unsure where to obtain your continuing education, visit the National Certification Board for Therapeutic Massage & Bodywork (www.ncbtmb.org/ceproviders.php) or Bureau for Private Postsecondary Education (www.bppe.ca.gov) for a list of providers/schools. Please note: not all transcripts will serve as sole proof of education, so please check our website regularly for a list of schools where additional proof of education, beyond a transcript, will be requested. !. ~ I Attachment E , . .. ,. BILL NUMBER: AB619 BILL TEXT CHAPTER 162 CHAPTERED FILED WITH SECRETARY OF STATE AUGUST 3, 2011 APPROVED BY GOVERNOR AUGUST 3, 2011 PASSED THE SENATE JULY 11, 2011 PASSED THE ASSEMBLY JULY 14, 2011 AMENDED IN SENATE JULY 1, 2011 AMENDED IN SENATE JUNE 7, 2011 AMENDED IN SENATE JUNE 2, 2011 AMENDED IN ASSEMBLY APRIL 25, 2011 AMENDED IN ASSEMBLY APRIL 13, 2011 AMENDED IN ASSEMBLY MARCH 31, 2011 INTRODUCED BY Assembly Member Halderman FEBRUARY 16, 2011 An act to amend Sections 4600, 4600.5, 4601, 4601.3, 4601.4, 4602, 4602.5, 4603, 4603.1, 4603.5, 4604, 4612, and 4615 of, and to add Sections 4603.7 and 4616 to, the Business and Professions Code, relating to massage therapy. LEGISLATIVE COUNSEL'S DIGEST AB 619, Halderman. Massage therapy. (1) Existing law, until January 1, 2015, provides for the voluntary certification of massage practitioners and massage therapists by a nonprofit Massage Therapy Organization, as defined. Existing law requires the initial board of directors to, among other things, establish the organization. This bill would specify that the Massage Therapy Organization is to be known as the California Massage Therapy Council, as defined. (2) Existing law requires applicants for initial certification as massage practitioners and massage therapists to pay a specified fee and meet certain educational requirements. This bill would require a certificate holder to include certain identifying information in any advertising, and to display his or her certificate at his or her place of business. (3) Existing law prohibits the holder of a certificate or a certificate applicant from being disciplined or denied a certificate unless certain procedural requirements are met. Existing law requires actiqns challenging a denial or discipline to be commenced within a year after the date of the denial or discipline. Under existing law, applicants and certificate holders are liable for charges incurred before the certificate denial or certificate holder discipline, or other specified charges. This bill would delete that liability requirement and would require the council to be sued only in the county of its principal office. (4) Existing law prohibits a city, county, or city and county from enacting an ordinance, or enforcing an existing ordinance, that requires a license, permit, or other auth<;>rization to practice massage by an individual who is certified pursuant to existing law, as specified. This bill would instead prohibit those local governments from Page 1 of12 h«p:llwww.leginfo.ca.gov/pubI11-12Ibill/asmlab_0601-0650/ab_619 _bill_20110803_cha... 10/28/2011 AB 619 Assembly Bill-CHAPTERED . enacting an ordinance or enforcing an existing ordinance that requires a license, permit, or other authorization to provide massage for compensation against an individual certified under existing state law or against a massage business or massage establishment that employs or uses only persons who are so certified. Existing law authorizes a city, county, or city and county to charge a massage business or massage establishment a business licensing fee sufficient to cover the costs of the licensing activities, as specified. This bill would require that the fee be no different than the fee that is uniformly applied to all other individuals and businesses providing professional services, as defined and specified. Existing law authorizes a city, county, or city and county to require a background check of any person certified to practice massage. This bill would authorize such a background check of an owner of 5% or more of a massage business or massage establishment, as specified. The bill would make various conforming changes, including with regard to the failure of an owner or operator of a massage business or establishment to comply with the provisions that apply to the practice of massage therapy. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 4600"of the Business and Professions Code is amended to read: 4600. As used in this chapter, the following terms shall have the following meanings: (a) "Approved school" or "approved massage school" means a school approved by the council that meets minimum standards for training and curriculum in massage and related subjects and that meets any of the following requirements: (1) Is approved by the Bureau for Private Postsecondary Education. (2) Is approved by the Department of Consumer Affairs. (3) Is an institution accredited by the Accrediting Commission for Senior Colleges and Universities or the Accrediting Commission for Community and Junior Colleges of the Western Association of Schools and Colleges and that is one of the following: (A) A public institution. (B) An institution incorporated and lawfully operating as a nonprofit public benefit corporation pursuant to Part 2 (commencing with Section 5110) of Division 2 of Title 1 of the Corporations Code, and that is not managed by any entity for profit. (C) A for-profit institution. (D) An institution that does not meet all of the criteria in subparagraph (B) that is incorporated and lawfully operating as a nonprofit public benefit corporation pursuant to Part 2 (commencing with Section 5110) of Division 2 of Title 1 of the Corporations Code, that has been in continuous operation since April 15, 1997, and that is not managed by any entity for profit. (4) Is a college or university of the state higher education system, as defined in Section 100850 of the Education Code. (5) Is a school of equal or greater training that is recognized by the corresponding agency in another state or accredited by an agency recognized by the United States Department of Education. (b) "Compensation" means the payment, loan, advance, donation, contribution, deposit, or gift of money or anything of value. Page 2ofl2 http://www.leginfo.ca.gov/pub/11-12/bilVasm/ab_0601-0650/ab_ 619 _ bill_ 20110803 _cha... 10128/2011 AB 619 Assembly Bill -CHAPTERED (cl "Massage therapist," "bodyworker," "bodywork therapist," or "massage and bodywork therapist" means a person who is certified by the California Massage Therapy Council under subdivision (cl of Section 4601 and who administers massage for compensation. (d) "Massage practitioner," "bodywork practitioner," or "massage and bodywork practitioner" means a person who is certified by the California Massage Therapy Council under subdivision (b) of Section 4601 and who administers massage for compensation. (e) "Council" means the California Massage Therapy Council created pursuant to this chapter, which shall be a nonprofit organization exempt from taxation under Section 501(c) (3) of Title 26 of the United States Code. The council may commence activities as authorized by this section once it has submitted a request to the Internal Revenue Service seeking this exemption. Whenever the term "organization" is used in this chapter, it shall mean the council, except where the context indicates otherwise. (f) "Registered school" means a school approved by the council that meets minimum standards for training and curriculum in massage and related subjects and that either is approved by the Bureau for Private Postsecondary Education or the Department of Consumer Affairs, or is an 'institution accredited by the senior commission or the junior commission of the Western Association of Schools and Colleges as defined in paragraph (3) of subdivision (a), is a college or university of the state higher education system as defined in Section 100850 of the Education Code, or is a school of equal or greater training that is approved by the corresponding agency in another state. (g) For purposes of this chapter, the terms "massage" and "bodywork" shall have the same meaning. SEC. 2. Section 4600.5 of the Business and Professions Code is amended to read: 4600.5. (a) The California Massage Therapy Council, as defined in subdivision (e) of Section 4600, shall be created and shall have the responsibilities and duties set forth in this chapter. The council may take any reasonable actions to carry out the responsibilities and duties set forth in this chapter, including, but not limited to, hiring staff and entering into contracts. (bl (1) The council shall be governed by a board of directors made up of two representatives selected by each professional society, association, or other entity, whose membership is comprised of massage therapists and that chooses to participate in the council. To qualify, a professional society, association, or other entity shall have a dues-paying membership in California of at least 1,000 individuals for the last three years, and shall have bylaws that require its members to comply with a code of ethics. The board of directors shall also include each of the following persons: (A) One member selected by each statewide association of private postsecondary schools incorporated on or before January 1, 2010, whose member schools have together had at least 1,000 graduates in each of the previous three years from massage therapy programs meeting the approval standards set forth in subdivision (a) of Section 4600, except from those qualifying associations that choose not to exercise this right of selection. (B) One member selected by the League of California Cities, unless that entity chooses not to exercise this right of selection. (ClOne member selected by the California State Association of Counties, unless that entity chooses not to exercise this right of selection. (D) One member selected by the Director of Consumer Affairs, unless that entity chooses not to exercise this right of selection. Page 3 of12 http://www.leginfo.ca.gov/pubI11-12lbilVasmiab _060 1-0650/ab _ 619 _ bill_ 20110803_ cha... 10/28/2011 I 1 i [I Ii AB 619 Assembly Bill -CHAPTERED (E) One member appointed by the Office of the Chancellor of the California Community Colleges, unless that entity chooses not to exercise this right of selection. The person appointed, if any, shall not be part of any massage therapy certificate or degree program. The council's bylaws shall establish a process for appointing other professional directors as determined by the board. (2) The initial board of directors shall establish the council, initiate the request for tax-exempt status from the Internal Revenue Service, and solicit input from the massage community concerning the operations of the council. The initial board of directors, in its discretion, may immediately undertake to issue the certificates authorized by this chapter after adopting the necessary bylaws or other rules, or may establish by adoption of bylaws the permanent governing structure prior to issuing certificates. (c) The board of directors shall establish fees reasonably related to the cost of providing services and carrying out its ongoing responsibilities and duties. Initial and renewal fees shall be established by the board of directors annually. (dl The meetings of the council shall be subject to the rules of the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code). SEC. 3. Section 4601 of the Business and Professions Code is amended to read: 4601. (a) The council shall issue a certificate under this chapter to an applicant who satisfies the requirements of this chapter. (b) (1) In order to obtain certification as a massage practitioner, an applicant shall submit a written application and provide the council with satisfactory evidence that he or she meets all of the following requirements: (A) The applicant is 18 years of age or older. (B) The applicant has successfully completed, at a single approved school, curricula in massage and related subjects totaling a minimum of 250 hours that incorporates appropriate school assessment of student knowledge and skills. Included in the hours shall be instruction addressing anatomy and physiology, contraindications, health and hygiene, and business and ethics, with at least 100 hours of the required minimum 250 hours devoted to these curriculum areas. (C) All fees required by the council have been paid. (2) New certificates shall not be issued pursuant to this subdivision after December 31, 2015. Certificates issued pursuant to this section or subdivision (a) or (c) of Section 4604 on or before December 31, 2015, shall, after December 31, 201 be renewed without any additional educational requirements, provided that the certificate holder continues to be qualified pursuant to this chapter. (c) In order to obtain certification as a massage therapist, an applicant shall submit a written application and provide the council with satisfactory evidence that he or she meets all of the following requirements: (1) The applicant is 18 years of age or older. (2) The applicant satisfies at least one of the following requirements: (A) He or she has successfully completed the curricula in massage and related subjects totaling a minimum of 500 hours. Of this 500 hours, a minimum of 250 hours shall be from approved schools. The remaining 250 hours required may be secured either from approved or registered schools, or from continuing education providers approved by, or registered with, the councilor the Department of Consumer Page4of12 http://www.leginfo.ca.gov/pub/11-12Ibilllasmlab _0601-0650/ab_619 _bilt20110803 _cha... 10/28/201 ~ AB 619 Assembly Bill -CHAPTERED Affairs. After December 31, 2015, applicants may only satisfy the curricula in massage and related subjects from approved schools. (B) The applicant has passed a massage and bodywork competency assessment examination that meets generally recognized psychometric principles and standards, and that is approved by the board. The successful completion of this examination may have been accomplished before the date the council is authorized by this chapter to begin issuing certificates. (3) All fees required by the council have been paid. (d) The council shall issue a certificate to an applicant who meets the other qualifications of this chapter and holds a current and valid registration, certification, or license from any other state whose licensure requirements meet or exceed those defined within this chapter. The council shall have discretion to give credit for comparable academic work completed by an applicant in a program outside of California. ) An applicant applying for a massage therapist certificate shall file with the council a written application provided by the council, showing to the satisfaction of the council that he or she meets all of the requirements of this chapter. (f) Any certification issued under this chapter shall be subject to renewal every two years in a manner prescribed by the council, and shall expire unless renewed in that manner. The council may provide for the late renewal of a license. (g) (1) The council shall have the responsibility to determine that the school or schools from which an applicant has obtained the education required by this chapter meet the requirements of this chapter. If the council has any reason to question whether or not the applicant received the education that is required by this chapter from the school or schools that the applicant is claiming, the council shall investigate the facts to determine that the applicant received the required education prior to issuing a certificate. (2) For purposes of paragraph (1) and any other provision of this chapter for which the council is authorized to receive factual information as a condition of taking any action, the council shall have the authority to conduct oral interviews of the applicant and others or to make any investigation deemed necessary to establish that the information received is accurate and satisfies any criteria established by this chapter. SEC. 4. Section 4601.3 of the Business and Professions Code is amended to read: 4601.3. (a) Prior to issuing a certificate to the applicant or designating a custodian of records, the council shall require the applicant or the custodian of records candidate to submit fingerprint images in a form consistent with the requirements of this section. The council shall submit the fingerprint images and related information to the Department of Justice for the purpose of obtaining information as to the existence and nature of a record of state and federal level convictions and of state and federal level arrests for which the Department of Justice establishes that the applicant or candidate was released on bailor on his or her own recognizance pending trial. Requests for federal level criminal offender record information received by the Department of Justice pursuant to this section shall be forwarded to the Federal Bureau of Investigation by the Department of Justice. The Department of Justice shall review the information returned from the Federal Bureau of Investigation, and shall compile and disseminate a fitness determination regarding the applicant or candidate to the council. (b) The Department of Justice shall provide information to the council pursuant to subdivision (p) of Section 11105 of the Penal Page 5 of12 http://www.leginfo.ca.gov/pub/11-121hill/asm/ab_0601-0650/ab_619 _bill_20110803 _cha... 10/28/2011 AB 619 Assembly Bill -CHAPTERED Code. (c) The Department of Justice and the council shall charge a fee sufficient to cover the cost of processing the request for state and federal level criminal offender record information. (d) The council shall request subsequent arrest notification service from the Department of Justice, as provided under Section 11105.2 of the Penal Code, for all applicants for licensure or custodian of records candidates for whom fingerprint images and related information are submitted to conduct a search for state and federal level criminal offender record information. (e) This section shall become operative September 1, 2009. SEC. 5. Section 4601.4 of the Business and Professions Code is amended to read: 4601.4. Council directors, employees, or volunteer individuals may undergo the background investigation process delineated in Section 4601.3. SEC. 6. Section 4602 of the Business and Professions Code is amended to read: 4602. (a) The council may discipline a certificate holder by any, or a combination, of the following methods: (1) Placing the certificate holder on probation. (2) Suspending the certificate and the rights conferred by this chapter on a certificate holder for a period not to exceed one year. (3) Revoking the certificate. (4) Suspending or staying the disciplinary order, or portions of it, with or without conditions. (5) Taking other action as the council, as authorized by this chapter or its bylaws, deems proper. (b) The council may issue an initial certificate on probation, with specific terms and conditions, to any applicant. (c) (1) Notwithstanding any other provision of law, if the council receives notice that a certificate holder has been arrested and charges have been filed by the appropriate prosecuting agency against the certificate holder alleging a violation of subdivision (b) of Section 647 of the Penal Code or any other offense described in subdivision (h) of Section 4603, the council shall take all of the following actions: (A) Immediately suspend, on an interim basis, the certificate of that certificate holder. (B) Notify the certificate holder within 10 days at the address last filed with the council that the certificate has been suspended, and the reason for the suspension. (C) Notify any business within 10 days that the council has in its records as employing the certificate holder that the certificate has been suspended. (2) Upon notice to the council that the charges described in paragraph (1) have resulted in a conviction, the suspended certificate shall become subject to permanent revocation. The council shall provide notice to the certificate holder within 10 days that it has evidence of a valid record of conviction and that the certificate will be revoked unless the certificate holder provides evidence within 15 days that the conviction is either invalid or that the information is otherwise erroneous. (3) Upon notice that the charges have resulted in an acquittal, or have otherwise been dismissed prior to conviction, the certificate shall be immediately reinstated and the certificate holder and any business that received notice pursuant to subparagraph (C) of paragraph (1) shall be notified of the reinstatement within 10 days. SEC. 7. Section 4602.5 of the Business and Professions Code is amended to read: Page 6 of 12 http://www.leginfo.ca.gov/pubI11-12lbilUasmlab_0601-0650/ab_619_ bill_ 20110803_ cha... 10/28/2011 AB 619 Assembly Bill -CHAPTERED 4602.5. (a) Upon the request of any law enforcement agency or any other representative of a local government agency with responsibility for regulating, or administering a local ordinance relating to, massage or massage businesses, the council shall provide information concerning a certificate holder, including, but not limited to, the current status of the certificate, any history of disciplinary actions taken against the certificate holder, the home and work addresses of the certificate holder, and any other information in the council's possession that is necessary to verify facts relevant to administering the local ordinance. (b) The council shall accept information provided by any law enforcement agency or any other representative of a local government agency with responsibility for regulating, or administering a local ordinance relating to, massage or massage businesses. The council shall have the responsibility to review any information received and to take any actions authorized by this chapter that are warranted by that information. SEC. 8. Section 4603 of the Business and Professions Code is amended to read: 4603. It is a violation of this chapter for a certificate holder to commit, and the council may deny an application for a certificate or discipline a certificate holder for, any of the following: (a) Unprofessional conduct, including, but not limited to, denial of licensure, revocation, suspension, restriction, or any other disciplinary action against a certificate holder by another state or territory of the United States, by any other government agency, or by another California health care professional licensing board. A certified copy of the decision, order, or judgment shall be conclusive evidence of these actions. (b) Procuring a certificate by fraud, misrepresentation, or mistake. (c) Violating or attempting to violate, directly or indirectly, or assisting in or abetting the violation of, or conspiring to violate, any provision or term of this chapter or any rule or bylaw adopted by the council. (d) Conviction of any felony, or conviction of a misdemeanor that is substantially related to the qualifications or duties of a certificate holder, in which event the record of the conviction shall be conclusive evidence of the crime. (e) Impersonating an applicant or acting as a proxy for an applicant in any examination referred to under this chapter for the issuance of a certificate. (f) Impersonating a certified practitioner or therapist, or permitting or allowing an uncertified person to use a certificate. (g) Committing any fraudulent, dishonest, or corrupt act that is substantially related to the qualifications or duties of a certificate holder. (h) Committing any act punishable as a sexually related crime. SEC. 9. Section 4603.1 of the Business and Professions Code is amended to read: 4603.1. (a) No certificate holder or certificate applicant may be disciplined or denied a certificate pursuant to Section 4603 except according to procedures satisfying the requirements of this section. A denial or discipline not in accord with this section or subdivision (c) of Section 4602 shall be void and without effect. (b) Any certificate applicant denial or certificate holder discipline shall be done in good faith and in a fair and reasonable manner. Any procedure that conforms to the requirements of subdivision (c) is fair and reasonable, but a court may also find other procedures to be fair and reasonable when the full Page 7of12 http://www.leginfo.ca.gov/pub/11-12/bill/asm/ab_0601-0650/ab_619 _bill_20110803 _cha... 10/28/2011 AB 619 Assembly Bill-CHAPTERED circumstances of the certificate denial or certificate holder discipline are considered. (c) A procedure is fair and reasonable when the procedures in subdivision (c) of Section 4602 are followed, or if all of the following apply: (1) The provisions of the procedure have been set forth in the articles or bylaws, or copies of those provisions are sent annually to all the members as required by the articles or bylaws. (2) It provides the giving of 15 days prior notice of the certificate denial or certificate holder discipline and the reasons therefor. (3) It provides an opportunity for the certificate applicant or certificate holder to be heard, orally or in writing, not less than five days before the effective date of the certificate denial or certificate holder discipline by a person or body authorized to decide that the proposed certificate denial or certificate holder discipline not take place. (d) Any notice required under this section may be given by any method reasonably calculated to provide actual notice. Any notice given by mail must be given by first-class or certified mail sent to the last address of the certificate applicant or certificate holder shown on the council's records. (e) Any action challenging a certificate denial or certificate holder discipline, including any claim alleging defective notice, shall be commenced within one year after the date of the certificate denial or certificate holder discipline. If the action is successful, the court may order any relief, including reinstatement, that it finds equitable under the circumstances. (f) This section governs only the procedures for certificate denial or certificate holder discipline and not the SUbstantive grounds therefor. A certificate denial or certificate holder discipline based upon substantive grounds that violates contractual or other rights of the member or is otherwise unlawful is not made valid by compliance with this section. (g) The council shall be sued only in the county of its principal office. SEC. 10. Section 4603.5 of the Business and Professions Code is amended to read: 4603.5. It shall be the responsibility of any certificate holder to notify the council of his or her home address, as well as the address of any business establishment where he or she regularly works as a massage therapist or massage practitioner, whether as an employee or as an independent contractor. A certificate holder shall notify the council within 30 days of changing either his or her home address or the address of the business establishment where he or she regularly works as a massage therapist or massage practitioner. SEC. 11. Section 4603.7 is added to the Business and Professions Code, to read: 4603.7. A certificate holder shall include the name under which he or she is certified and his or her certificate number in any and all advertising and shall display his or her certificate at his or her place of business. SEC. 12. Section 4604 of the Business and Professions Code is amended to read: 4604. (a) Notwithstanding Section 4601, the council may grant a massage practitioner certificate to any person who applies on or before January 1, 2012, with one of the following: (1) A current valid massage permit or license from a California city, county, or city and county and documentation evidencing that the person has completed at least a 100-hour course in massage at an Page 8of12 http://www.leginfo.ca.gov/pub/II-12Ibilllasmlab_0601-0650/ab_ 619 _bill_2011 0803_ cha... 10/2812011 AB 619 Assembly Bill-CHAPTERED approved or registered school, or out-of-state school recognized by the council as providing comparable education, has been practicing for at least three years, and has provided at least 1,000 hours of massage to members of the public for compensation. (2) Documentation evidencing that the person has completed at least a 100-hour course in massage at an approved or registered school, or out-of-state school recognized by the council as providing comparable education, has been practicing for at least three years, and has provided at least 1,750 hours of massage to members of the public for compensation. For purposes of this subdivision, evidence of practice shall include either of the following: (A) A W-2 form or employer's affidavit containing the dates of the applicant's employment. (B) Tax returns indicating self-employment as a massage practitioner or massage therapist or any other title that may demonstrate experience in the field of massage. (3) Documentation evidencing that the person holds a current valid certificate of authorization as an instructor at an approved massage school, or holds the position of a massage instructor at a school accredited by an agency recognized by the United States Department of Education, or colleges and universities of the state higher education system, as defined in Section 100850 of the Education Code. (b) (1) After reviewing the information submitted under subdivision (a), the council may require additional information necessary to enable it to determine whether to issue a certificate. (2) If an applicant under paragraph (1) of subdivision (a) or paragraph (1) of subdivision (c) has not complied with Section 4601.3, or its equivalent, when obtaining a license or permit from the city, county, or city and county, the council shall require the applicant to comply with Section 4601.3 prior to issuing a certificate pursuant to this section. (c) (1) A person applying for a massage practitioner certificate on or. before January 1, 2012, who meets the educational requirements of either paragraph (1) or (2) of subdivision (a), but who has not completed the required number of practice hours prior to submitting an application pursuant to this section, may apply for a conditional certificate. (2) An applicant for a conditional certificate shall, within five years of being issued the conditional certificate, be required to complete at least 30 hours of additional education per year from schools or courses described in paragraph (5) until he or she has completed a total of at least 250 hours of education, which may include massage education hours previously completed in a massage course described in either paragraph (1) or (2) of subdivision (a). (3) Upon successful completion of the requirements of this subdivision, the council shall issue a certificate to the person that is not conditional. (4) A conditional certificate issued to any person pursuant to this subdivision shall immediately be nullified, without need for further action by the council, if the time period specified in paragraph (2) expires without proof of completion of the requirements having been filed with the council. (5) Any additional education required by this section may be completed through courses provided by any of the following: (A) An approved school. (B) A registered school. (C) A provider approved by, or registered with, the councilor the Department of Consumer Affairs. (D) A provider that establishes to the satisfaction of the council Page 9 of 12 http://www.leginfo.ca.gov/pubI11-12Ibilllasmlab_0601-0650/ab_619 _ bill_ 20110803_ cha... 10/28/2011 AB 619 Assembly Bill -CHAPTERED that its course or courses are appropriate educational programs for this purpose. ( d) exercising respect to SEC. 13. Nothing in this section shall preclude the council from any power or authority conferred by this chapter with a conditional certificate holder. Section 4612 of the Business and Professions Code is amended to read: 4612. (a) (1) The holder of a certificate issued pursuant to this chapter shall have the right to practice massage, consistent with this chapter and the qualifications established by his or her certification, in any city, county, or city and county in this state and shall not be required to obtain any other license, permit, or other authorization, except as provided in this section, to engage in that practice. (2) Notwithstanding any other provision of law, a city, county, or city and county shall not enact an ordinance that requires a license, permit, or other authorization to provide massage for compensation by an individual who is certified pursuant to this chapter and who is practicing consistent with the qualifications established by his or her certification, or by a massage business or massage establishment that employs or uses only persons who are certified pursuant to this chapter to provide massage for compensation. No provision of any ordinance enacted by a city, county, or city and county that is in effect before the effective date of this chapter, and that requires a license, permit, or other authorization to provide massage for compensation, may be enforced against an individual who is certified pursuant to this chapter or against a massage business or massage establishment that employs or uses only persons who are certified pursuant to this chapter to provide massage for compensation. (3) Except as provided in subdivision (b), nothing in this section shall be interpreted to prevent a city, county, or city and county from adopting or enforcing any local ordinance that provides for reasonable health and safety requirements for massage establishments or businesses. Subdivision (b) shall not apply to any massage establishment or business that employs or uses persons to provide massage services who are not certified pursuant to this chapter. (b) (1) This subdivision shall apply only to massage establishments or businesses that are sole proprietorships, where the sole proprietor is certified pursuant to this chapter, and to massage establishments or businesses that employ or use only persons certified pursuant to this chapter to provide massage services. For purposes of this subdivision, a sole proprietorship is a business where the owner is the only person employed by that business to provide massage services. (2) (A) Any massage establishment or business described in paragraph (1) shall maintain on its premises evidence for review by local authorities that demonstrates that all persons providing massage services are certified. (B) Nothing in this section shall preclude a city, county, or city and county from including in a local ordinance a provision that requires a business described in paragraph (1) to file copies or provide other evidence of the certificates held by the persons who are providing massage services at the business. (3) A city, county, or city and county may charge a massage business or establishment a business licensing fee, provided that the fee shall be no different than the fee that is uniformly applied to all other individuals and businesses providing professional services, as defined in subdivision (a) of Section 13401 of the Corporations Page 10 of 12 http://www.leginfo.ca.gov/pubI11-12lhill/asm/ab_060l-0650/ab_619 _bile 20110803 _cha... 10/28/2011 AB 619 Assembly Bill -CHAPTERED Code. (4) Nothing in this section shall prohibit a city, county, or city and county from enacting ordinances, regulations, rules, requirements, restrictions, land use regulations, moratoria, conditional use permits, or zoning requirements applicable to an individual certified pursuant to this chapter or to a massage establishment or business that uses only individuals who are certified pursuant to this chapter to provide massage for compensation, provided that, unless otherwise exempted by this chapter, these ordinances, regulations, rules, requirements, restrictions, land use regulations, moratoria, conditional use permits, and zoning requirements shall be no different than the requirements that are uniformly applied to all other individuals and businesses providing professional services, as defined in subdivision (a) of Section 13401 of the Corporations Code. No provision of any ordinance, regulation, rule, requirement, restriction, land use regulation, moratoria, conditional use permit, or zoning requirement enacted by a city, county, or city and county that is in effect before the effective date of this chapter, and that is inconsistent with this paragraph, may be enforced against an individual who is certified pursuant to this chapter or against a massage business or massage establishment that uses only individuals who are certified pursuant to this chapter to provide massage for compensation. (5) Local building code or physical facility requirements applicable to massage establishments or businesses shall not require additional restroom, shower, or other facilities that are not uniformly applicable to other professional or personal service businesses, nor shall building or facility requirements be adopted that (A) require unlocked doors when there is no staff available to ensure security for clients and massage staff who are behind closed doors, or (B) require windows that provide a view into massage rooms that interfere with the privacy of clients of the massage business. (6) A city, county, or city and county may adopt reasonable health and safety requirements with respect to massage establishments or businesses, including, but not limited to, requirements for cleanliness of massage rooms, towels and linens, and reasonable attire and personal hygiene requirements for persons providing massage services, provided that nothing in this paragraph shall be interpreted to authorize adoption of local ordinances that impose additional qualifications, such as medical examinations, background checks, or other criteria, upon any person certified pursuant to this chapter. (7) Nothing in this section shall preclude a city, county, or city and county from doing any of the following: (A) Requiring an applicant for a business license to operate a massage business or establishment to fill out an application that requests the applicant to provide relevant information. (B) Making reasonable investigations into the information so provided. (C) Denying or restricting a business license if the applicant has provided materially false information. (c) An owner or operator of a massage business or establishment subject to subdivision (b) shall be responsible for the conduct of all employees or independent contractors working on the premises of the business. Failure to comply with this chapter may result in revocation of the owner's or operator's certificate in accordance with Section 4603. Nothing in this section shall preclude a local ordinance from authorizing suspension, revocation, or other restriction of a license or permit issued to a massage establishment or business if violations of this chapter, or of the local ordinance, Page 11 of 12 http://www.leginfo.ca.gov/pubI11-12lhill/asm/ab_0601-0650/ab_619 _ bill_ 20110803 _ cha... 10128/2011 AB 619 Assembly Bill-CHAPTERED occur on the business premises. (d) Nothing in this section shall preclude a city, county, or and county from adopting a local ordinance that is applicable to massage businesses or establishments described in paragraph (1) of subdivision (b) and that does either of the following: (1) Provides that duly authorized officials of the city, county, or city and county have the right to conduct reasonable inspections, during regular business hours, to ensure compliance with this chapter, the local ordinance, or other applicable fire and health and requirements. (2) Requires an owner or operator to noti the city, county, or city and county of any intention to rename, change management, or convey the business to another person. (e) Nothing in this chapter shall be construed to preclude a city, county, or city and county from requiring a background check of an owner or operator of a massage establishment who owns 5 percent or more of a massage business or massage establishment and who is not certified pursuant to this chapter. The background check may consist of an application that requires the applicant to state information, including, but not limited to, the applicant's business, occupation, and employment history for the five years preceding the date of application, the inclusive dates of same, and the name and address of any massage business or other like establishment owned or operated by any person who is subject to the background check requirement of this subdivision. SEC. 14. Section 4615 of the Business and Professions Code is amended to read: 4615. This chapter shall be subject to the review required by Article 7.5 (commencing with Section 9147.7) of Chapter 1.5 of Part 1 of Division 2 of the Government Code. SEC. 15. Section 4616 is added to the Business and Professions Code, to read: 4616. This chapter shall be liberally construed to effectuate its purposes. If any provision of this chapter or the application thereof to any person or circumstance is held to be invalid, the invalidity shall not affect other provisions or applications of the chapter that can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable. Page 12 of12 http://www.leginfo.ca.gov/pub/II-12Ibilllasmlab_0601-0650/ab_619 _ bill_20 11 0803_ cha... 10/28/2011 ***Proposed Massage Municipal Code*** 4.54.010 Purpose and intent. It is the purpose and intent of this chapter to provide for the orderly regulation of massage establishments and massage technicians, as defined in this chapter, in the interests of the public health, safety, and welfare by providing certain minimum building, sanitation and health standards for massage establishments, and by providing certain minimum qualifications for the operators of massage establishments and for massage technicians and massage technician trainees. Unless otherwise indicated, the requirements of this Code shall not apply to massage practitioners and therapists certified by the California Massage Therapy Council (CAMTC) or establishments in which the practitioners are all CAMTC certified. 4.54.020 Definitions. (a) For the purpose of this chapter, unless the context clearly requires a different meaning, the words, terms and phrases set forth in this section shall have the meanings given them in this section: (1) "Massage” means any method of pressure on, or friction against, or stroking, kneading, rubbing, tapping, pounding, vibrating or stimulating the external parts of the human body with the hands or with the aid of any mechanical or electrical apparatus, or other appliances or devices, with or without such supplementary aids as rubbing alcohol, liniment, antiseptic, oil, powder, cream, lotion, ointment or other similar preparations. (2) “Massage technician" means any person who administers massages, baths or health treatments involving massage or baths as the principal functions to another person for any consideration whatsoever. (3) “Massage technician trainee” means a student who works in a massage establishment under the supervision and direction of a massage technician who has received a permit issued under the provisions of this chapter. (4) "Massage establishment" means any establishment with more than one massage technician having a fixed place of business where any, firm, association, partnership, corporation, joint venture or combination of individuals engages in, conducts, carries on or permits to be engaged in, conducted or carried on massages, baths or health treatments involving massage or baths, where massage is part of primary function of the business. (5) "Sole Proprietor Massage establishment" means any owner-operated establishment having a fixed place of business where an individual, carries on or permits to be engaged in, conducted or carried on massages, baths or health treatments involving massage or baths as the principal functions. 1 (6) “Recognized school of massage” means any school or institution of learning which teaches the theory, ethics, practice, profession and work of massage. The student shall possess a diploma or certificate of graduation from such school or institution of learning following the successful completion of such course of study or learning, and which school has been approved pursuant to California Education Code Section 29025, or, if said school is not located in California, has complied with standards commensurate with those required in said Section 29025. Any school or institution of learning offering or allowing correspondence course credit not requiring actual attendance at class, or courses of a massage technician not approved by the California State Department of Education shall not be deemed a "recognized school of massage." (7) "Permit" means the permit to engage in the activities of a massage technician or a massage technician trainee as required by this chapter. (8) "Person" means any individual, firm, association, partnership, corporation, joint venture or combination of individuals. (9) “California Massage Therapy Council” (CAMTC) means the governing non- profit board that is authorized to evaluate qualifications of massage therapists and issue certification in the State of California. (10) “Accessory Technician Permit” A technician who is not a sole proprietorship may be eligible to receive an accessory technician permit. This permit will allow massage to be conducted within a business that is not a massage establishment, provided the following requirements are met: a. The technician must provide the police department with sufficient evidence to demonstrate that he or she is an independent contractor or an employee of the business. b. The business is not in the regular business of providing massage. c. The technician must obtain a massage technician permit as required by section 4.54.060 of this code. 4.54.030 Massage establishment permit required. (a) Except as otherwise provided, it is unlawful for any person to engage in, conduct or carry on, in or upon any premises within the city the operation of massage establishment without a permit obtained from the chief of police, as required by this chapter. A massage establishment permit shall be issued to any person who has complied with the requirements of Sections 4.54.050 and 4.54.110 of this chapter, and all other applicable provisions of this code or state law, as applicable; unless grounds for denial of 2 such permit are found to exist. In addition to those set forth in Section 4.04.140, grounds for denial include: (1) The applicant made a material misstatement in the application for a permit; (2) The applicant has, within five years immediately preceding the date of the filing of the application, been convicted in a court of competent jurisdiction of an offense involving conduct which requires registration under California Penal Code Section 290, or any violations of Sections 311 through 311.7, 313.1, 314, 315, 316, 318 or 647(a), 647(b), 647(d), or 647(h) of the California Penal Code, or of any offense involving theft of property or violence; (3) That the operation of a massage establishment, as proposed by the applicant if permitted, would not comply with all applicable laws including, but not limited to, all city ordinances and regulations; (4) That the operation of the proposed massage establishment is likely to be injurious to the health, safety, welfare, and interest of the people of the city; (5) That the applicant is lacking in the background and qualifications to conduct a bona fide massage establishment; or (6) That the applicant has violated any provision of this chapter, or of any similar ordinance, law, rule or regulation of another public agency which regulates the operation of massage establishments. (7) That the CAMTC has revoked, suspended, or denied the applicant a permit. 4.54.040 Massage establishment permit application fee; renewal (a) Any application for a permit to operate a massage establishment shall be accompanied by a nonrefundable fee as set forth in the municipal fee schedule. The application fee shall be used to defray, in part, the costs of investigation and report, and is not made in lieu of any other fees or taxes required under this code. (b) A permit to operate a massage establishment shall be renewed annually. The renewal fee shall be as set forth in the municipal fee schedule. In addition, the massage technician must also submit valid identification, massage certification and a completed new permit application. 4.54.050 Application for massage establishment permit. (a) Any application for a permit to operate a massage establishment shall be made with the chief of police. Within thirty working days following receipt of a completed application and LiveScan results, the chief of police shall either issue the permit or mail a 3 written statement of his reasons for denial thereof. The application shall set forth the exact nature of the massage bath or health treatment to be administered, the proposed place of business and facilities therefore, and the name and address of each applicant. The chief of police may request the applicant to allow fingerprints to be taken when needed for the purpose of establishing identification. In addition to the requirements of Chapter 4.04 and this section, any applicant shall furnish the following items: 1. The address of the proposed location 2. The previous addresses of applicant, if any, for a period of three years immediately prior to the date of the application and the dates of residence at each; 3. Written proof that the applicant is at least eighteen years of age; 4. Applicant's height, weight, color of eyes and hair; 5. Two recent passport photos 6. Business, occupation or employment history of the applicant for the three years immediately preceding the date of the application; 7. If the applicant is a corporation, the name of the corporation shall be set forth exactly as shown in its articles of incorporation, together with the names and residence addresses of each of its officers, directors, and each stockholder holding more than five percent of the stock of the corporation. If the applicant is a partnership, the application shall set forth the name and residence address of each of the partners, including limited partners. If one or more of the partners is a corporation, the provisions of this section pertaining to a corporate applicant shall apply; 8. The names and residence addresses of all persons currently employed or intended to be employed in the massage establishment, regardless of the nature of the employment, other than any person permitted pursuant to Section 4.54.060, along with the proposed or actual nature of the work performed or to be performed, and recent passport-size photographs, suitable to the police officer or designee processing the application, of each such employee. The chief of police may require such employee to allow fingerprints to be taken for the purpose of identification. Any applicant or permitee shall notify the city in writing of the names, addresses and nature of the work, of any new employees, within five days of such employment, and supply the photographs described in this subsection. Such new employees shall allow fingerprints to be taken for the purpose of identification upon request. "Employee" includes every owner, partner, manager, supervisor and worker, whether paid or not, who renders personal services of any nature in the operation of a massage establishment. 9. Such other information as may be deemed necessary by the chief of police. (b) Proof of malpractice insurance coverage or equivalent with a minimum of $100,000 coverage shall be required within 30 days of permit issuance. 4.54.060 Massage technician permit required. 4 (a) It is unlawful for any person to act as a massage technician or a massage technician trainee unless such person holds a valid permit issued by the chief of police or a certification from the CAMTC. A massage technician permit shall be issued to any person who has fulfilled the requirements of Section 4.54.080, and all other provisions of this code or state law, as applicable; unless grounds for denial of such permit are found to exist. In addition to those set forth in Section 4.04.140, grounds for denial include: (1) The applicant made a material misstatement in the application for a permit; (2) The applicant has, within five years immediately preceding the date of the filing of the application, been convicted in a court of competent jurisdiction of an offense involving conduct which requires registration under California Penal Code Section 290, or any violations of Sections 311 through 311.7, 313.1, 314, 315, 316, 318 or 647(a), 647(b), 647(d), or 647(h) of the California Penal Code, or of any offense involving theft of property or violence; (3) That the issuance of the permit is likely to be injurious to the health, safety, welfare, and interest of the people of the city; (4) That the applicant is lacking in the background and qualifications to act as a massage technician; or (5) That the applicant has violated any provision of this chapter, or of any similar ordinance, law, rule or regulation of another public agency which regulates the operation of massage establishments or massage technicians. (6) That the CAMTC has revoked, suspended, or denied the applicant a permit. (b) A permit issued by the chief of police is not required for any massage technician and massage establishments if the owners and all technicians are massage practitioners or therapists, who are operating under a valid certificate issued by the Massage Therapist Organization (also known as the California Massage Therapy Council), per Chapter 10.5 (Commencing with Section 4600) of Division 2 of the California Business and Professions Code relating to massage therapy, provided however, that such person and business shall not be exempted from this Article if Chapter 10.5 is repealed. However notification of the CAMTC certification number must still be made to the police department where the CAMTC permit holder is working. 4.54.065 Education Requirements (a) General educational requirements. Except as indicated below, all applicants for a Massage Technician permit must meet the following educational standards to qualify for such permit, at the discretion of the Chief of Police: (1) Possession of a diploma or certificate of completion from a “recognized school of massage” which shows satisfactory completion of a resident course of study of 5 a minimum of two hundred (200) verifiable hours on the theory, ethics, history, practice, and/or methods of massage therapy, including the study of anatomy, physiology and hygiene. (b) Exemptions from educational requirements. The following persons are exempt from the educational requirements set forth in subsection (a) above: (1) Holders of Massage Establishment business permits and Massage Technician business permits issued by the City before the effective date of this Chapter shall have a period of eighteen (18) months from the effective date of this Chapter to satisfy the educational requirements set forth in subsection (a) above. (2) Eighteen (18) months from the effective date of this ordinance, any therapist who does not have the required 200 hours of education will not be permitted to practice massage in Palo Alto. However, the chief of police may provide special consideration on a case-by-case basis to those massage technicians who can prove through documentation that they are currently enrolled in coursework associated with massage therapy and compliance of the 200 hour requirement is expected within a reasonable amount of time. 4.54.070 Massage technician application fee. Any application for a permit to act as a massage technician shall be accompanied by a nonrefundable fee as set forth in the municipal fee schedule. A massage technician permit shall be renewed annually. The renewal fee shall be as set forth in the municipal fee schedule. Any person who applies for a permit to operate a massage establishment and who desires to act as a massage technician within said establishment shall not be required to furnish the information set forth in Section 4.54.080. 4.54.080 Application for massage technician permit. (a) Any application for a permit to act as a massage technician shall be made with the chief of police. Within thirty working days following receipt of a completed application and LiveScan results, the chief of police shall either issue the permit, or mail a written statement of his reasons for denial thereof. If he takes neither action, the permit shall be deemed to be issued. The chief of police may request the applicant to furnish fingerprints when needed for the purpose of establishing identification. In addition to the requirements of Chapter 4.04, the applicant shall furnish the following items: (1) Name, residence address and telephone number; (2) Social security number and driver's license number, if any; (3) Applicant's weight, height, color of hair and eyes; (4) Two recent passport photos of applicant; 6 (5) Written evidence that the applicant is at least eighteen years of age; (6) Business, occupation or employment of the applicant for the three years immediately preceding the date of application; (7) The name and address of the establishment where the applicant is to be employed, and the name of the owner or operator of the same. Any massage technician granted a permit pursuant to this section must report a change in massage establishment employment within five days of said change; (8) The name and address of the “recognized school of massage” attended, the date attended, and a copy of the diploma or certificate of graduation awarded to the applicant, or other documentation showing the applicant has completed 200 hours. 4.54.090 Massage technician trainee. (a) Any person desiring to obtain a permit to act as a massage technician trainee shall make an application to the chief of police. Within thirty working days following receipt of a completed application and having received LiveScan results, the chief of police shall either issue the permit, or mail a written statement of his reasons for denial thereof. If he takes neither action, the permit shall be deemed to be issued. A massage technician trainee permit shall be issued to any person who has fulfilled all the requirements of Section 4.54.080, except item (8), and who produces written proof that the applicant is currently enrolled in a “recognized school of massage”, as defined in this chapter; of the date the applicant enrolled in the recognized school of massage; and the scheduled date of graduation; and that the applicant has completed at least fifty hours of instruction and the date this instruction was completed; provided the applicant submits a letter signed by the owner or manager of a permitted massage establishment stating his immediate intent to employ the applicant to do massage as a trainee working under the direct supervision and control of a massage technician who has received a permit under the provisions of this chapter unless: (1) The applicant knowingly made a material misstatement in the application for the trainee permit; or (2) The applicant has, within five years immediately preceding the date of the filing of the application, been convicted in a court of competent jurisdiction of an offense involving conduct which requires registration under California Penal Code Section 290, or any violation of Sections 311 through 311.7, 313.1, 314, 315, 316, 318 or 647(a), 647(b), 647(d) or 647(h) of the California Penal Code or of any offense involving theft of property. No fee shall be required of a massage technician trainee applicant. The trainee must at all times comply with the laws relating to massage establishments, and the failure to comply may render the trainee ineligible to obtain a massage technician permit. 7 Any massage technician trainee who, during the life of the trainee permit, completes the instruction required of a massage technician, shall be issued a massage technician permit upon payment of a massage technician application fee as set forth in the municipal fee schedule. 4.54.100 Appeal. In the event a permit or permit application has been denied, the applicant shall proceed pursuant to the appeal and hearing provision in Chapter 4.04. 4.54.110 Massage establishment facilities and operations requirements. (a) Except as otherwise indicated, all massage establishments, including those certified by CAMTC, shall comply with the following facilities and operations requirements: (1) Massage establishments shall comply with all code requirements. (2) A minimum of one toilet and wash basin shall be provided in every massage establishment. (3) Cabinets or other covered space shall be provided for the storage of clean linen. Approved receptacles shall be provided for the storage of all soiled linen and paper towels. (4) Minimum ventilation shall be provided in accordance with the building code of the city. To allow for adequate ventilation in cubicles, rooms and areas provided for patrons' use, which are not serviced directly by required window or mechanical systems of ventilation, partitions shall be constructed so that the height of partition does not exceed seventy-five percent of the floor-to-ceiling height of the area in which they are located. (5) All plumbing and electrical installations shall be installed under permit and inspection of the building inspection department, and such installations shall be installed in accordance with the Uniform Building Code and the Uniform Plumbing Code. (6) The walls in all rooms where water or steam baths are given shall have a washable, mold-resistant surface. (7) All lavatories or wash basins shall be provided with hot and cold running water, soap and single-service towels in wall-mounted dispensers. (8) Security deposit facilities capable of being locked by the patron or a security bag that may be carried by the patron shall be available for the protection of the valuables of the patrons. 8 (9) Every portion of a massage establishment, including appliances, apparatus and personnel, shall be kept clean and operated in a sanitary condition. (10) All massage establishments shall provide clean and sanitary towels, sheets and linens in sufficient quantity. Towels, sheets and linens shall not be used by more than one person. Reuse of such linen is prohibited unless the same has first been laundered. Heavy white paper may be substituted for sheets; provided, that such paper is used once for each person and then discarded into a sanitary receptacle. (11) All walls, ceilings, floors, pools, showers, bathtubs, steam rooms and all other physical facilities for the establishment must be in good repair and maintained in a clean and sanitary condition. Wet and dry heat rooms, steam or vapor rooms, or steam or vapor cabinets, shower compartments and toilet rooms shall be thoroughly cleaned and disinfected each day the business is in operation. Bathtubs shall be thoroughly cleaned and disinfected after each use. (12) Disinfecting agents and sterilizing equipment shall be provided for any instruments used in performing acts of massage and said instruments shall be disinfected and sterilized after each use. (13) Pads used on massage tables shall be covered with durable, washable plastic or other acceptable waterproof material. (14) (A) To protect patrons from potential health and sanitary hazards, all employees, massage technicians and massage technician trainees shall be clean and shall perform all services on the premises in full, clean outer garments. (B) Exception. A massage technician may perform services wearing no clothing or wearing less than full outer garments when teaching a class gathered to learn the theory, practice, or work of massage, and when said class consists in part of massage by the technician or members of the gathered class. The following items, (15) through (18), shall not apply to CAMTC certified establishments: (15) Each service offered, the price thereof, and the minimum length of time such service shall be performed shall be posted or shall be available in a conspicuous public location in each massage establishment. All letters and numbers shall be capitals, and not smaller than 14 point font. (16) (A) Massage establishments shall close and remain closed from eleven p.m. (11 p.m.) to nine a.m. (9:00 a.m.) (B) After one year of operation a massage establishment may be exempted from the hours restrictions of this section by the chief of police upon a written request which details the factual reasons supporting good cause for the exemption. The chief of police, 9 in determining what constitutes good cause for this exemption from the hours restrictions, shall consider and weight the following factors: (i) The criteria outlined in Section 4.04.140 of Chapter 4.04; (ii) The criteria outlined in Section 4.54.030 of this chapter; (iii) The impact which the massage establishment has had on the health, safety, and welfare of the local community, including, but not limited to, parking and traffic congestion; (iv) The massage establishment's compliance or noncompliance with all federal, state, and local laws, including, but not limited to, this municipal code. If, upon review of those factors, the chief of police determines that good cause does exist for the requested exemption, the chief may then exempt the particular massage establishment from the hours restrictions of this section. However, in no event shall any massage establishment close later than two a.m. nor open earlier than six a.m. (C) The exemption from the hours restrictions of this section shall be subject to review and renewal annually at the same time as the renewal of the underlying permit and the same factual showing shall be made as that required for the initial exemption. The chief shall not grant an hours exemption unless said establishment has maintained the criteria specified in Section 4.54.110(a)(16)(B). (17) Every massage establishment and sole proprietor massage establishment shall keep written client records of the following: the date and hour of each service; the name, contact information and sex of each patron; the service provided, and the technician administering the service. This log may be inspected only pursuant to a court order. (Ord. 2833 § 1 (part), 1974) (18) Off-premises Massage Prohibited. Except as otherwise provided, no person, , shall engage in any of the services permitted under this chapter at any place other than an establishment permitted pursuant to Chapter 4.54. 4.54.120 Inspection by officials. Any and all investigating officials of the city shall have the right to enter massage establishments from time to time during regular business hours to make reasonable inspections to observe and enforce compliance with building, fire, electrical, plumbing or health regulations. A warrant shall be obtained whenever required by law. 4.54.130 Business name. 10 No person permitted to operate a massage establishment shall operate under any name or conduct business under any designation not specified in the permit. 4.54.140 Business location change. Upon a change of location of a massage establishment, an application to the chief of police shall be made, and such application shall be granted, provided all applicable provisions of this code are complied with and a change of location fee as set forth in the municipal fee schedule to defray, in part, the costs of investigation and report, has been paid to the city. 4.54.150 Sale or transfer of massage establishment interest. A sale or transfer of any interest in a massage establishment, which interest would be reported as required in this chapter upon application for a massage establishment permit, shall be reported to the chief of police within ten days of such sale or transfer. The chief of police shall investigate any person receiving any interest in a massage establishment as a result of such sale or transfer, and if such person satisfies the requirements relating to massage establishment permit applicants, the existing permit shall be endorsed to include such person. A fee as set forth in the municipal fee schedule shall be paid to the city for the investigation by the chief of police necessitated by each such sale or transfer. 4.54.160 Display of permits, permits. The owner or operator of a massage establishment shall display the massage establishment permit and the permit of each and every massage technician or massage technician trainee employed in the establishment in an open and conspicuous place on the premises or keep the permits together in a designated area, such that the permits are easily accessible for inspection. Passport-size photographs of permittees shall be affixed to the respective permits on display pursuant to this section. Home addresses of massage technicians and massage technician trainees need not be displayed. A fine for continued violation will be collected in an amount to be determined by resolution of the City Council. 4.54.170 Exemptions. The provisions of this Chapter shall not apply to the following classes of individuals while engaged in the performance of the duties of their respective professions: (1) Physicians, surgeons, chiropractors, osteopaths or physical therapists who are duly permitted to practice their respective professions in the state of California; (2) Nurses registered under the laws of the state of California; 11 12 (4)Barbers and beauticians who are duly permitted under the laws of the state of California. 4.54.180 Grounds for denial, probation, and disciplinary action. In addition to any provisions of this chapter, the grounds set forth in Section 4.04.140 shall apply to permits and permits required under this chapter. Any circumstances constituting grounds for denial shall also constitute grounds for revocation, suspension or disciplinary action. 4.54.190 Hearing. Any permittee whose permit has been suspended or revoked shall proceed pursuant to the appeal and hearing provisions of Chapter 4.04. 4.54.200 Application to existing establishments and technicians. All operators of existing massage bath or health treatment establishments, and all persons engaged in giving massage, bathing and health treatments in the city upon the effective date of this chapter shall begin the application process and comply with all application and other requirements within sixty (60) days following the effective date of this chapter. 4.54.210 Application of other code provisions. Chapters 1.08 and 4.04 shall apply to the subject matter of this chapter in all respects, including those not specifically mentioned in this chapter. o 1=! ~ (l) ] ~ ~ LOCAL SURROUNDING CITIES MASSAGE TECHNICIAN RATES SAN MATEO MILLBRAE NEW MASSAGE TECHNICIAN PERMIT $323.00 $697.00 MASSAGE TECHNICIAN RENEWAL .. $188~00 $209.0Q. BELMONT SUNNYVALE MOUNTAIN VIEW PALO ALTO $500.00 $223.00 $409.00 $157.00 $150.00 $223.00 _. $203.00 _ $81.00 NEW MASSAGE TECHNICIAN PERMIT AVERAGE: $385 MASSAGE TECHNICIAN RENEWAL AVERAGE: $176 _ NEW MASSAGE TECHNICIAN PERMIT _MASSAGE TECHNICIAN RENEWAL ~ <v ~ ~O ~~ ~~ <Q<VV ~~ ~~ ~o ~ o «~ c:>"::> ~ 0"::> ~ LOCAL SURROUNDING CITIES MASSAGE ESTABLISHMENT RATES NEW ESTABLISHMENTS ESTABLISHMENT RENEWALS $2,000.00 $1,800.00 $1,600.00 $1,400.00 $1,200.00 $1,000.00 $800.00 $600.00 $400.00 $200.00 $0.00 ~<v0 ~ ~~ SJ ~ ~v <::>~ SAN MATEO $427.00 L... $142.00 t-<v ~O ~~ MILLBRAE $697.00 $209.00 ~ ~~ BELMONT SUNNYVALE MOUNTAIN VIEW PALO ALTO $500.00 $841.00 $811.00 $1,790.00 $150.00 $777.00 $409.00 $810.00 NEW MASSAGE ESTABLISHMENT AVERAGE: $844 MASSAGE ESTABLISHMENT RENEWAL AVERAGE : $416 ,,0 ~ .NEW ESTABLISHMENTS • ESTABLISHMENT RENEWALS <Qo/ ~~ <::>'5 ~~ ~ 0'5 ':YO <l.~ ~ ~~_'"._,~ __ , ............... ::.:: ~. _...;::.~~;.;;=-"o...; .. ~==_~_=~· =.='...:..:..::....---.:;-""""'..o...t..,~~-_~==, ______ _ Minor, Beth From: Sent: To: Subject: Dear City Council T Lance Welsh Oance@lwelsh.coml Monday. February 06,20127:27 PM Council, City Massage Ordinance Thank you for taking the time to read what must be volumes of email{ on this and other issues. Please know that I'm another Palo Alto resident who is surprised to. hear that we need reformed massage ordinances. As a resident for over 20 years, I have seen no evidence that there is a problem here that needs fixing. EspeCially when the cost of even a well-intentioned proactive law would put a burden on some establishments like Happy Feet. I live In Baron Park and visit when work becomes stressful. It's wonderful to live nearby, and nothing against Watercourse Way or other high-end spas{ but even if I could afford it, I'm glad to have the choice to not spend that much money. I've had nothing but good healthy clean service from Happy Feet and am proud to live In a community that hasn't gentrified so much as to wipe out these more affordable shops and services. Please reconsider whether we need to make new laws for problems that don't exist, or at least consider making them with minimal harm to good businesses a.nd our community. Perhaps I'm wrong -if there are problems and compelling reasons for new laws, please enlighten me. Sincerely, Lance Welsh 3885 Magnolia Drive Palo Alto, CA ~4306 1 Teixeira, Barbara From: Sent: To: Minor, Beth on behalf of Council, City Wednesday, February 08, 2012 7:50 AM Teixeira, Barbara Page I of 1 Subject: FW: Massage Ordinance Revision (PD) Agenda Item, February 14, 2012 Policy & Services meeting Attachments: ARCB RAA Brochure 2012 1.6. 12.pdf -1 .. pdf; ARCB Palo Alto. pdf; Califomia Statutes. pdf; Citrus Heights Exemption.pdf; RAC 2011 Brochure.pdf; Reflexology vs Massage (4).pdf; Palo Alto Llr· Whitaker-Harvey. pdf; NIH NCCAM.doc.pdf Hi Barb, This should also go with the massage ordinance report. B- From: Susan Mix [mailto:MlxReflexology@comcast.netj Sent: Tuesday, February 07,20126:05 PM To: Council, aty Subject: Massage Ordinance Revision (PD) Agenda Item, February 14,2012 Policy & Services meeting February 7, 2012 Palo Alto City Council 250 Hamilton Avenue Palo Alto CA 94301 Re: Massage Ordinance Revision (PD) Agenda Item, February 14, 2012 Policy & Services meeting As a representative of the Reflexology Association of California (RAe), I request time for myself and a few other professional reflexologlsts to speak against the issue of amending the Massage Ordinance to include reflexology under the massage regulations. A brief summary of information regarding professional reflexology and legislation pertaining to its practice is attached to this e-mail. Some of the attached documents reference other documents that we will bring to the meeting. Sincerely, Susan l. Mix RAC Vice President 408-829-6249 2/8/2012 Reflexology is: Reflexology is a non-invasive comple- mentlIY practice involving the use of alternating pressure applied to the re- flexes withln the reflex maps of the body located on the fcet, hands and outcrcars. A Typical Reflexology Session: o Is performed on the fect, hands and outer ears. • Only footwear is removed o Average session length is 60 minutes. The Legitimate Reflexology Professional is: o A graduate of a reflexology pro- gmm consisting of at least 200 hours of Imining. o Certified through a national certification board. o Certified through an accredited vocational school. Posted Credentials May Include: o Diploma of Reflexology edw;ation. o Certificate ofCcrtification. o MemheIShip in RAA and the state reflexology ao;;soc1atiOD. o Continuing Education Certificates. o Code of Ethlcs and Business S tan- dards. o Whom to contact with a grievance. History and Science: The art and science of Reflexology is hased on the work of three 20th century medical doetors and a physio- therapist • Dr. William Fitzgerald (USA) • Dr. Joe Shelby Riley (USA) o Dr. Panl Nogier (France) o Eunice Ingham (USA) Reflexology is: o SUpPOrted hy over 300 global research stodies. • Funded by two research gran1s (of several million dollars each) by the National Cancer Institote. • Recognized by the National Center for Complementary and Alternative Medicine as a separate integrative therapy. © 2012 RAAI ARCB ldenti fjin g the Legitimate ReJeXDlogy Practice Etbics and Business Standards An unethical, but growing trend in the USA is the operation of "reflexology parlors or studios" that front for operations of human trafficking and prostitution. All,professi(>nal reflexology form. Professional reflexologists adhere to a strict Code of Ethics and Business Standards set forth by national organizations, educational institutions, and state legislation. Resources For more infonnation or to report a potential case of human tmfficking, please contact your local law enforcement, or. National Human Trafficking Resource Center 1-888-373-7888 www.traffickingresoureecenter.com Professional Organizations in the Reflexology Field Both these Reflexology organizations are independent non-profit corporations governed by their own Board of Directors and work in cooperation with each other. ARCB American Reflexology Certification Board The primary aim of ARCB is to protect the public through certifying the eompetency of tmined reflexology practitioners. To aid the public in locating ARCB eertificants in their area it also provides a national referral directory through their website. Established in 1991, ARCB is a non-profi~ independent national testing agency. As such ARCB is not affiliated with any schooL instructor, business, or association. ARCB 303-933-6921 www.arcb.net RAA Reflexology Association of America RAA, established in 1995, is a member- ship association open to reflexologists, reflexology scbools, and to those who are outside the field, but wish to support reflexology. RAA's primary goals include: • Advancing its members' interests, • • • • Sponsoring a bieunial conference, Acting as a national referral board for its member practitioners. Educating the public on reflexology and its benefits. Acting as a clearinghouse for infor- mation about reGexology to the fed- eral government, the public and its membership. RAA 980-234-0159 W1\o"W.rdlexology-usa.org Michael Rainone Scarsdale, NY PresiJttl~ Lucy Scarhrough jackson, TN Viet' Pr ... sident Janet Q'Foalin LllgUJlll NigueL CA BartI'd S~(retm'Y Perry Dickinson Topeka. KS TrY4Surer Mary Ann Stimmell rvIar~hfie1J, \vr Dij>ccwr Allnalise EveUS()il Old Green\vich, CT Diuctor Shat,+on Vetmeulen Grand Rapid." M( Adminimati!'! Secretary Chd8tine Issei AubuITt,CA Lrgistativc COilJllitaJJt ARCB • PO Box 141553 • Grand Rapids MI 49514 P -303.933.692'1 • f -303.904.0460 tofo@arcb.net • www.arcb.net 7 February 2012 To Whom It May Concern: The challenge faced today is how to regulate and license reflexology businesses that are potentially doing harm without severely restricting the ethical professional practicing reflexologist as an integrative therapist while ensuring public safety. A properly trained and nationally certified reflexologist will have met competency standards. Educational standards are important so that harm does not occur; however, reflexology does not involve invasive techniques, pharmaceutical substances, or is it to be used as a diagnostic tecbnique; therefore it is a low risk practice. Nationally evidence of physical harm due to an incompetent reflexologist has never been reported. Furthermore, the National Center for Complementary and Alternative Medicine (NCCAM) has found those who seek out complementary therapies to be well educated. This in and of itself lends an element to public safety. The decision \0 seek reflexology is controlled by the client (self-referred) and well-educated clients are more likely to know when to seek legal recourse and have adequate resources to pursue damages. Public welfare is served by consumers having broad access to reflexology and knowing that all service providers meet basic standards to perform their work. On the attached page is a list of suggested professional practitioner standards to be met allowing public safety. ARCB is willing to meet with the committee to discuss how best to address the issues it is faced with if further information is required. For immediate response I may be contacted bye-mail at quantumreflexology@earthlink.net or directly by telephone at 530-887-1364. Sincerely, Christine Issel Since .1.99.1 setting the bighr:st testing standards t,) which professional r~~c:xologists aspire Professional Practitioner Standards Setting standards for public safety would include reflexologist providing; a. Proof of U.S. reflexology education of at least 200 hours for each practitioner (if not G.S. then some kind of proof of education). b. National certification with the American Reflexology Certification Board (ARCB). In this way the state, city andfor county do not have to evaluate educational backgrounds and conduct psychometrically valid certification exam testing. See attached brochure for testing prerequisites. The testing process often takes 18 months from submission of the application to grading of documentations. If a reflexologist hss applied for testing, then a letter from ARCB stating the person is a candidate would suffice. c. Membership in professional association(s), the Reflexology Association of America (RAA) and/or the Reflexology Association of California (RAC). Membership also provides a system for grievances to be presented and resolved. ARCB, RAA & RAC investigate complaints and reprimand or otherwise discipline practitioners for a breach in the Code of Ethics and Business Practices. d. Proof of practitioner liability insurance-i.e., liability insurance policy number for each reflexologist. e. And required use of a Full and Fair Disclosure form as mandated by Statute 2053.5-6 of the California Business & Professions Code (Health Freedom of Access to CAM Therapies) which provides guidelines on how CAM therapy practitioners must present themselves. 2007 Profile of a Reflexologist Based on the responses provided in the ARCB National 2007 Job Analysis Survey, the "typical" reflexologist is a 52 year old, Caucasian female who is self-employed in reflexology and practices in a suburban area of New York. "Zoe" has been practicing for about 10 years, sees less than 10 clients per week and carries practice liability insurance. Although, Zoe conducts the majority of her sessions in a private practice at her home, she occasionally makes "outcalls" to her clients' homes. Zoe's sessions last about an hour. For most, reflexology is a mid-life career change. In addition to her "formal" education, from which she hss a four-year degree, Zoe's initial reflexology training consisted of a 200 hour program. To date, she has at least 500 hours of training in reflexology. She likely gained the additional hours of training through attendance at the workshops and conferences held by the state, national and international associations of which she is a member. During the course of her work, Zoe varies the pressure during her thumb and finger movements, uses circular pressure and avoids using her knuckles on the reflex points. She is careful to check with her clients intermittently throughout the session regarding their pressure preferences. She doesn't use tools, but occasionally uses lubricants during her work. Zoe always works on the feet and increasingly is incorporating work on the hands into her sessions. She is less apt to work on the ears. Following a code of ethics and business standards, Zoe doesn't provide psychological counseling, but does engage in active listening. She will often give her clients homework for self-help and will refer them to other health care providers on an "as-needed" basis. Zoe follows a combination ofthe stress reduction, medical and energy models of reflexology, but also believes that there are contraindications that always have to be considered. California Statutes of BUSINESS AND PROFESSIONS CODE Chapter 5 -Medicine -SECTION 2053.5-6 (AKA Health Freedom of Access ofeAM Therapies) 2053.5. (a} Notwithstanding any other provision 0= law, a person who complies with the requirements of Section 2Q53.6 shall not be in violation 0: Section 2051 or 2052 unless that person does any of the following: (1) Conducts surgery or any other procedure on another person that punctures the skin or harmfully invadesthe body. {2) Administers or prescribes ~ray radiation to another person. (3) Prescribes or administers legend drugs or controlled s'..lbstances to another person. (4) Recor.tmends the di8contin'Jance 0: legend drugs or controlled substances prescribed by an appropriately licensed practitioner. (5) Willfully diagnoses and treats a physical or mental condition of any person under circut:lstances or conditions that cause or create a risk of great bodily harm, serious physical or mental illness, or death. (6) Bets fractures. (7) Treats lacerations or abrasions through electrotherapy. (8) Holds out, states, indicates I advertises, or implies to a client or prospective client that he or she is a physician, a surgeon, or a physician and surgeon. (b) A person who advertises any services that are not 'Jl1lawful under Section 2051 or 2052 pursuant to subdivision (a) shall disclose in the advertisement that he or she is not licensed by the state as a healing arts practitioner. 2053.6. (a) A person who provides services pursuant to Section 2053.5 that are not unlawful under Section 2051 or 2052 shall, prior to providing those services, do the following: {l) Disclose to the clie~t in a written statement using plain language the following informati~: {A) That he or she is not a licensed physician. (B) That the treatment is alternative or complementary to healing arts services lice~sed by the state. {C) That the services to be provided are not licensed by the state. (D) The nature of the services to be provided. (E) The theory of treatment upon which the services are based. (F) His or her ed~cational, training, experience, and other qualifications regarding the services to be provided. (2) Obtain a written acknowledgment from theclient stating that ce or she has been provided with the information described in paragraph (1). The client shall be provided with a copy of the written acknowledgement I which shall be maintained by the person providing the service for three years. Cb) The in::ormation required by subdivision (a) shall be provided in a language that the client understands. (c) Nothing in this section or in Section 2053.5 shall be construed to do the following: (1) Affect the scope of practice of licensed physicians and surgeons. (2) Limit the right any other civil remedy to the req'..lirements of of any person to against a person this section, seek relief for negligence or providing services subject CODE OF ORDINANCES City of CITRUS HEIGHTS, CALIFORNIA Codified through Ordinance No. 2011-003, adopted March 24,2011. Chapter 22 -Businesses Article VIII Massage Establishments Sec. 22-600. -Title. Sec. 22-60 I. -Authority. Sec. 22-602. -Purpose and intent. Sec. 22-603. -Application of article to persons engaged in massage as of the effective date of this article; grandfather clause. Sec. 22-604, -Construction of this article with other city codes. Sec. 22-605. -Definitions. Sec. 22-606. -Exemptions from article. ,Secs. 22-607-22-609. -Reserved. Sec. 22-600. -Title. This article shall be known as the "Massage Establishment Licensing Law of the City of Citrus Heights." Sec. 22-605 Definitions The definitions contained in this section shall govern the construction of this article. Words contained in this article but not defined by this section shall be construed according to the ordinary and common usage of the word, taking into consirlemtion the context of the language and the definition of the word as provided in a standard English language dictionary. Applicant means any person who applies for a license as required by this article. In the event the applicant is a non-natural person (e.g. a corporation), the term applicant shaH also include a natural person legally authorized to act on behalf of the applicant and the person submitting the application to the city pursuant to this article. Approved national massage organization or association means an organization recognized by the City of Citrus Heights, specifically the: American Massage Therapy Association (AMTA) or the Associated Bodywork and Massage Professionals (ABMP), or a similar organization which requires: Completion of at least 100 hours of massage training or experience; possession of practitioner's liability insurance coverage in the minimum amount of$2,000,000.00 per event; adherence to a code of ethics; and renewal of an annual membership. Certificate or AlTO certificate means the certificate, or conditional certificate, issued by the massage thempy organization to massage therapists, pursuant to Business and Professions Code § 460 I (c) and to massage practitioners pursuant to subdivision 4601(b), or 4604(a), 4604(c), that entitles the holder to practice massage. When used in this article, "MTO certification" means a person who has a valid, unexpired MTO certificate. Certificate holder means a person who has an valid, unexpired certificate from the MTO to practice massage, who is in good standing with the MTO. Certified massage establishment mean a massage establishment that employs or uses only massage therapists with MTO certification to perfonn massage services. Certified sole proprietorship means a sole proprietorship where the owner has received MTO certification and is the only person employed by that business (0 provide massage services. Chief of police means the Citrus Heights Police Department Chief of Police or hislher designee. City means the City of Citrus Heights. City clerk means the City Clerk of the City of Citrus Heights or hislher designee. City council means the City CA)uncii of the City of Citrus Heights. Continuing education means a class or seminar in massage therapy or related educational subjects, including classes related to anatomy and physiology, contraindications, health and hygiene, provided by a recognized massage school, facility or organization approved by a national massage organization or association, or a state-approved school, or any other certification organization recognized by the finance director. Employee means a person who perfonns any massage service on the premises of a massage establishment on a full-time, part-time, or contract basis, whether or not the person is denominated an employee, independent contractor, agent or otherwise and whether or not the person is paid a salary, wage or other compensation by the massage establishment. Finance director means the City of Citrus Heights Finance Director or hislher designee. Home occupation massage therapist means a massage therapist who engages in the business of massage therapy in hislher home or residence, or who engages in massage therapy in both hislher home or residence and in a massage establishment. Licensee means any person operating or maintaining a massage establishment pursuant to a massage establishment license. Massage means any method of pressure on, or friction against, or stroking, kneadiug, rubbing, tapping, pounding, vibrating, or stimulating of the external parts of the human body below the neck with the hands or other parts of the body, with or without the aid of any mechanical or electrical apparatus or appliances, or with or without supplementary aids such as rubbing alcohol, liniments, antiseptics, oils, powder, creams, lotions, ointroents or other similar preparations commonly used in the practice of massage. Massage establishment means a fixed place of business where any person engages in or carries on massage, as defined by this section, in exchange for any form of consideration. Massage establishment license or license means a license issued by the finance director and required pursuant to this article, to operate or maintain a massage establishment within the city, issued to the massage establishment owner. Massage therapist means any person who gives or administers a massage to another person, for any form of consideration whatsoever. Unless otherwise specified massage therapist includes those persons with MTO certification and those individuals classified by his/her school of education as bodyworkers, bodywork therapists, massage practitioner, bodywork practitioner or massage technicians. Massage therapist permit or permit means a permit issued by the city to a person, which authorizes the person to engage in the business of massage therapy within the city. Massage therapy organization or "MTO" means the nonprofit massage therapy organization established pursuant to Business and Professions Code § 4600 et seq. that has the authority to issue certificates to qualified massage therapists and massage practitioners. Offpremises massage therapist means massage therapists who provide off-premises massage services and who are self-employed and/or who contract with or work for a business other than a massage establishment Massage therapists who conduct massage as a home occupation are engaged in off-premises massage therapist businesses. Permittee means the person issued a massage therapist permit pursuant to this article. Person means any individual, partnership, firm, association, joint stock company, corporation or combination of individuals of whatever form or character. Recognized massage school means a facility that (I) teaches the theory, ethics, practice, profession or work of massage; 2) requires a resident course of stady before the student shall be furnished with a diploma or a cenificate of graduation from such school or institution of learning following the successful completion of such course' of stody or learning; and 3) meets the minimum standards for training and curriculum in massage and related subjects and that was either recognized by the Bureau of Private Postsecondary and Vocational Education pursuant to former Section 94739 of the California Education Code prior to July 1, 2007, and on the date the received hislher certificate, or is recognized by the department of consumer affairs, by an institution accredited by the Accrediting Commission for Senior Colleges and Universities Or the Accrediting Commission for Community and Junior colleges of tho Western Association for Schools and Colleges and that is one ofthe following: (a) a public institution, (b) an institution incorporated and lawfully operating as a nonprofit public benefit corporation under the state of California laws, and that is not managed by an entity for profit; (c) a for-profit institution; (d) an institution incorporated that does not meet all of the criteria in subparagraph (b) that is incorporated and lawfully operating as a nonprofit public benefit corporation, that has been continuously operating since April 15, 1997; (d) a college or university of the state of higher education system, as defined in Education Code § 100850; or (e) a school of greater or equal training that is approved by the corresponding agency recognized by the U.S. Department of Education. Schools or institutions oflearning offering a correspondence course not requiring actual attendance shall not be deemed a recognized massage school. The applicant shall provide the documentation necessary, to the satisfaction of the finance director, to provide proof that his/her school is a recognized massage school. Reflexology means a non-invasive complementary modality involving the use of alternating pressure applied to the reflexes within the reflex maps of the body located on the feet, hands, and outer ears. Responsible person means the person designated by a partnership, finn, association, joint stock company, corporation, limited liability corporation, to be responsible for the operation of the massage establishment. The responsible person must meet the qualifications under this article to receive a massage therapist permit from the city, including the educational requirements, and he/she must also provide documentation to the city evidencing that the corporation, partnership or entity that owns the massage establishment has designated himlher as the responsible person. Specified anatomical areas means, less than completely and opaquely covered: human genitals, public regions, buttocks, or female breasts below a point immediately above the top of the areola, and human male genitals in a discernibly turgid state, even if completely and opaquely covered. (Ord. No. 2008-10, § 1,5-8-2008; Ord. No. 2009-005, § 1,12-10-2009) Sec. 22-606 Exemptions from article This article shall not apply to the following classes ofindividuals and, except as provided in subsections (4) and (5) below, a massage establishment license or massage therapist permit shall not be required of such persons while engaged in the perfurmance of the duties of their respective professions, but such persons must comply with the sanitation and decency requirements of this article: (1) Physicians, surgeons, nurses, chiropractors, osteopaths, acupuncturists, naturopathic doctors and physical therapists who are duly licensed to practice their respective professions in the state, and massage therapists working under the direct supervision of such duly licensed physicians, snrgeons, chiropractors, osteopaths, acupuncturists, naturopathic doctors and physical therapists; (2) Trainers of any amateur, semiprofessional or professional athlete or athletic team; (3) Hospitals, nursing homes, or persons working in any such establishments; (4) Barbers or cosmetologists lawfully carrying out their particular occupation or business, and holding a valid, unrevoked license or certificate of registration issued by the State of California, and where massage comprises not more thaIi 25 percent of the square footage of the establishment; however, any massage therapist engaged in massage at such establishment shall be required to obtain a massage therapist pennit; (5) Athletic clubs or fitness facilities, where such facility is designed and equipped for indoor sports, exercise, or physical education and where massage comprises not more than ten percent of the square footage of the establishment shall not be required to obtain license pursuant to this article; however, any massage therapists engaged in massage at such establishment shall be required to obtain a massage therapist permit. (6) A recognized school ofrnassage which: (i) teaches the theory, ethics, practice, profession and work of massage; (ii) requires a residence course of study to be given before the student is furnished with a diploma or certificate of learning or completion; and (iii) has been approved pursuant to Education Code § 94915, or, if said school is not located in California, has complied with the standards commensurate with those specified in Education Code § 94915, (7) Reflexologists performing reflexology; however, any reflexologist engaged in massage shall be required to obtain a massage therapist pemlit, unless he/she has an MfO certificate, (Ord, No, 2008-10, § 1,5-8-2008; Ord, No, 2009-005, § 2,12-10-2009) P.o.BOX4286 Lakewood, CA 00711 How to Join ow-mission is !O assist each member co ~ rhf!ir viS>m bringing <M communlly roged1er through sIIilred ilt'fMl~ Md enhandng _ pto(€5$iofl as ~ whcle mrongllM!IV1t>m communication and iKtion. We make it eIlSy for )'tJu to got started in what is trIJIy ytIIoIr Association: Go to _.lIefIenlog,<A.arg to apply for membership onlil1e, Or phone us at (310) 899- 6289 to request an appHc.ation by mail. While on the ~ den'l (0IJ1& ro d1fc~ our the flW'1l' member bel>efJl;sI Professional Membership You qualify when you ptOIIlcie proof of either a 2OO-hour l'I!IlelroIogy training school tertifiC3tioll, or natiOnal board tertificatlon. Anlltlill Profe~llJm!,< $75 Associate Membership Associate membership are avajble to reflexology students, accredited reflexology schools, to private business and individuals. Annual Assoda Ie Due, $50 Dr. William Fitzgerald Histor.y Per HeruikLing (1872-1942) (Modern Originator) (1776-1839) Reflexology is the Definition Massage is the systematic application of specific and seientific manipulation pressures to reflex points in of the soft tissues of the the hands and feet Sr;;ol1~of f{actll;~ b.ady The extremities. From the Entirehody ankles and wrists distally to the tips ofthe toes and Basic Premise fingers There are zones and reflex Stroldng restores metabollc areas in the reet and hands imhalance within the soft correspondmg to all lJody tissue. Massage works parts. Reflexology worb through the musculature through the nervous system Body of Knowledge 40+ hooks solely on reflexology Books on massage Separate Reflexology Separate massage schools, schools, associations--local, assoeiations & a national state national, mtemational, certification hody & a national certification body Techniques & Alternating pressure Terminology Tapping Thumb. walking Kneading Fmger wallcing Stroldng Hook and hack-up Friction Rotation on a reflex Shaking Hands, ftJet, & possibly ears AppficaOOn Of To the entire hody Only $hoes & socks Techntques Client undresses . removed National certification Education Educati.onal programs requires a minimum of 200 ~ange from 100-1,OOQhours bours of study & often mcorporating other documented practice of touch modalities relle)(olQgy Scientific research studies Research Worldwide research studies conducted in USA, documenting the Australia, Denmark, Chma therapeutic value of, and elsewhere proving massage . effectiveness ofrefleJtology @ 199_6 American Refiexoloty Certification Board 7 February 2012 To Whom It May Concern: I am a reflexologist working with the Whitaker Wellness Clinic Medical Institute. Reflexology has been used at this internationally recognized clinic for nearly 20 years. The professional application of reflexology and massage as distinct forms of complementary therapies are offered to patients among other doctor ordered procedures. As separate disciplines they utilize different techniques and philosophical approaches resulting in outcomes unique to each' modality. Reflexology works primarily through the nervous system versus the soft tissue. Reflexology has been billed through CAM, PPO of America, Inc. a credentialed national alternative medicine network of providers. CAM PPO maintains an exclusive focus on building a comprehensive, holistic medicine network, ensuring that employees of Parker Hannifin Engineering in our area, with 10,000 covered members, for over 20 years have access to qualified CAM practitioners. With CAM providers in a variety of specialties and extensive online educational resources for members, CAM PPO of America, Inc. encourages CAM use, promoting health and well ness by identifying and credentialing the most qualified CAM practitioners and makes their services available at an affordable cost to patients. It would be a disservice to regulate reflexology under the massage. The issue before you is complex and hopefully working together we can come up with a solution that honors the business owner, reflexologists, and massage therapists while protecting public safety, Sincerely, Paul Harvey, C.R. Whitaker Wellness Institute :: r a d i d c n Z i " 1 ,C ' n j ' : i e : i ~ " '~ . n ~ d : d , n e ~" ' M ; b' , " ~ r e . j ( ; ~ t _ s o r n e of - t h e " r y l , a n y to ! 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" MU : t d . , b o d y _ m e d i c i o , e 1« ~ - o o W< l Y 3 to : h a r ~ a M ' mi r n f ~ ~ _ ~ . : n i ~ . ~ : ~ , ~ i ~ ~ , ~ J b e ~ fa c t o o _ m < a ~ il· - p e r s o n ' i l1 e . a t t h -"E x 3 m ~ !i } ( ' ~ . r n « t i t . n i O r \ c ~, ~ Y P 9 a , 1 POLICY AND SERVICES COMMITTEE EXCERPT Regular Meeting February 14, 2012 Chairperson Price called the meeting to order at 6:04 p.m. in the Council Conference Room, 250 Hamilton Avenue, Palo Alto, California. Present: Espinosa, Klein, Schmid Absent: Holman (Chair) 1. Request Policy and Service Committee Review of the Proposed Ordinance Changes to Section 4.54 Massage Establishments. Assistant to the City Manager, Sheila Tucker stated she would be Staffing the Policy and Services Committee this year and looked forward to working with the Council and serving the Committee. Palo Alto Police Lieutenant, April Wagner stated that the City Attorney’s Office and Police Department Staff members had worked on the proposed Ordinance change for over a year. She said that the Palo Alto Municipal Code Ordinance 4.54 was enacted in 1974 to ensure lawful commerce of massage businesses in Palo Alto. The Palo Alto Police Department (PAPD) was responsible for enforcing the Ordinance. In 1996, state laws were anticipated to change the regulation of massage businesses. The City suspended enforcement on portions of the Ordinance that included, permit renewals, fee collections, and site inspections. Background checks and permitting of new massage applicants continued. The current Ordinance, as written, violated state law. The City had 191 City permitted or California Massage Therapy Council (CAMTC) certified massage therapists. Palo Alto had three permitted massage establishments; Water Course, Body Kneads, and the Massage Therapy Center. There were four establishments that should have been permitted under the current regulations. A City audit revealed two dozen unpermitted massage establishments in Palo Alto. The adoption of Senate Bill 731 (SB731) in September 2009 impacted the ability of municipalities to regulate the practice of massage and the CAMTC, a 2 public, non-profit, benefit corporation was created. The corporation standardized and regulated the issuance of certificates to massage therapists and practitioners. Adoption of Assembly Bill 619 (AB619) in 2011, continued legislative work on portions of SB731 that were going to expire. Fifty percent of the massage therapists in Palo Alto were not state-certified. Many local municipalities revisited their ordinance since the passage of SB731. Staff reviewed local updated ordinances and worked with CAMTC Board Members in creating the document. An outreach program was conducted that involved citizens and therapists in a modification review of the Ordinance. Key objectives were to comply with State regulations, to insure qualified trained workers, exempted CAMTC certified practitioners or be permitted by the City, and allowed sole proprietorships in Palo Alto. The final draft change added language to exempt CAMTC holders from obtaining additional City massage permits, increased education from 100 to 200 hours from an accredited school, added sole proprietorship, required malpractice insurance, must display City permits as required by State law, and to maintain limited client records and made available by a court order. The new Ordinance eliminated special building and zoning requirements by State law and added the ability to deny a City permit to an applicant who had been denied, suspended, or had a CAMTC certificate revoked. The cost recovery fees for the program and Staff time were changed to be consistent with other cities. New establishment fees were $750, renewal fee $450; sole proprietorship fee $350, renewal fee $150; massage technician permit $300, renewal fee $150 for people that did not want to be state certified. A 2-year CAMTC certificate fee was $150, plus a $90 Livescan fingerprint or a criminal history check fee. Practitioners were required to have 250 hours and therapists 500 hours of education from an accredited school. CAMTC certified therapists not establishments. In conclusion, the proposed Ordinance would recognize and allow massage practice to occur in Palo Alto, allowed existing therapists and establishments to continue doing business, and allowed time for the therapists to comply with the requirements. Those who chose to patronize the establishments could feel confident that the therapist had met standardized qualifications. The Ordinance was consistent with other municipalities and state requirements. CAMTC Board Members found the draft Ordinance to be compliant with the state law. The passage of the Ordinance would allow the City to resume consistent enforcement on the massage businesses in Palo Alto. Mark Petersen-Perez, PaloAltoFreePress, spoke that massage therapists and practitioners had the right to deny law enforcement officials the ability to view the records unless they had a court order. The information was sensitive and confidential. 3 Vice President Susan Mix, Reflexology Association of California (Association), stated that the Ordinance revision did not unfairly encompass Reflexology within the Massage Ordinance. She said the scope of practice of Reflexology was a non-invasive, natural system of stress reduction and worked on a fully clothed person and only shoes and socks were removed. Work was done from the ankle to the tips of the toes, from the wrists to the tips of the fingers and the outer ear. Reflexologists do not rub backs of a client. The average price charged per session in the Bay Area was $50 to $100. She raised concerns that there may be establishments that were misclassified in Palo Alto as Reflexology and were included in the Ordinance. She urged the City to adopt an exemption to the Massage Ordinance and to create a separate ordinance for professional Reflexologists to protect the public. She said the Association was willing to work with the PAPD to craft an exemption. Vicky Venter, Reflexologist, stated that Reflexology was not massage. The practice of Reflexology was to bring the body back to balance through relaxation through the nervous system and not the musculature system. She said Reflexology should not be governed under massage laws and should have its own laws to include setting educational standards to support public safety concerns. Christine Issel, Reflexologist and Representative of the American Reflexology Certification Board (ARCB), spoke regarding the regulation and licensing of Reflexology businesses. She said some of the requirements that needed to be considered for licensing were evidence of an ARCB certification, proof of membership from one of the professional organization such as the Reflexology Association of California, proof of practitioner liability insurance, Livescan fingerprints, a government issued identification and to require the disclosure form from the California Business and Professional Code. She suggested setting educational standards and fingerprint requirements with the license application to prevent blurring the law and operating under misleading premises. Beverly D’Urson stated that she patronized Happy Feet Foot Spa in Palo Alto. She opposed the revision to the Ordinance because it would take away the ability to choose certain healing techniques. She said the Happy Feet Foot Spa specialized in a certain massage technique and the revised ordinance would force their staff members to obtain a massage permit. Robert Hessen spoke in support of the Happy Feet Foot Spa and asked that new restrictions not be imposed on the establishment. He clarified that the operation functioned in a transparent, open atmosphere that did not encourage inappropriate behavior. He urged the decision-making members 4 to examine the service that the Happy Feet Foot Spa offered before making a final decision. David Bertelsen, Happy Feet Foot Spa owner, raised concerns that the revision to the Ordinance would require staff members to be licensed under the new law. He urged the Council to reject the changes because anyone that practiced any form of massage would be grouped under one umbrella and would require unnecessary licensing. Ping Bertelsen, Happy Feet Foot Spa owner, stated neighboring cities did not require licensing for businesses similar to theirs and that Palo Alto law enforcement officers tried to convince them otherwise. He said the City of Mountain View had passed an ordinance specifically for their type of practice. A new category was created that exempted non-licensed massage practitioners from the standard massage licensing requirements. She said most of the south Bay Area establishments did not require licensing or fees that had the same type of business as theirs. Babs Mitchell stated that the Palo Alto Police Officers had placed restrictive requirements on various equipment and cleaning procedures in her establishment and stated the issues in question should be revisited. She felt that any establishment that practiced any type of massage should be under one ordinance. Dainuri Rott spoke in support of the Happy Feet Foot Spa. He said the services they offered were the only healthcare he used and were affordable. He asked the City to not enforce an ordinance that would force the establishment to discontinue their practice in Palo Alto. Robin Malmquist stated that the definition of the term “therapist”, “technician”, and “practitioner” used in the Ordinance did not coincide with the definition used by CAMTC. They should be the same, consistent, and easily understood. He asked that the Ordinance not be implemented until after all CAMTC applicants were certified. Applicants waiting to be certified were placed in a state of limbo and faced with having to make a choice to either follow the Ordinance route or CAMTC regulations. Council Member Klein asked if the state would occupy the massage field if the City did not move forward on the revision, and that the speakers at this evening’s meeting may or may not be governed by the state. Assistant City Attorney, Donald Larkin clarified that the state’s intent was to not occupy the field of massage if the City did not move forward on the proposed changes. The state’s attempt was to create a permitting system 5 that would take people away from local regulations. He said the Council had three options: 1) to allow massage practice with a state permit enforced through an ordinance, which was similar to the ordinances in neighboring cities. 2) the City allow people to opt out of local regulations by getting state-certified, which the enacted ordinance change would do, and 3) to repeal the City’s Massage Ordinance and not require practitioners to obtain state certification and the option for no regulations. Council Member Klein restated that if the City did nothing, and the City repealed the City’s Ordinance, which was inconsistent with the state law, there would be no regulations at all. Mr. Larkin said practitioners would not be required to be state-certified and there would be no regulation at all. Council Member Klein asked how was this issue handled in unincorporated areas. Mr. Larkin said they were governed by a County ordinance. Council Member Klein said the state provided the City with a system where the City could opt in and state regulations would take over. Mr. Larkin said that was correct. The state preempted the City from regulating anyone certified by the state but did not preempt the City from anyone who was not state-certified. The state placed the responsibility on the City to regulate non-state certified practitioners. Council Member Klein asked if the City could adopt an ordinance that would require practitioners to pay an annual permit fee of $1 if the City felt it did not require any type of regulations. Mr. Larkin said the City could repeal the existing ordinance and not have any regulations or to have a level of regulation such as a $1 annual permit fee to track permitted practitioners. Council Member Klein asked Mr. Larkin if the City repealed the Ordinance and had no regulations, would there be no regulations set by the state. Mr. Larkin said that was correct. Council Member Klein asked if that had been done elsewhere. Mr. Larkin said not in the local area but could not confirm for statewide. 6 Council Member Klein said there was an issue in the 1970’s and asked if the City had encountered issues in the field of massage within the last 30-years. He asked if this discussion would be taking place if the state had not enacted their law. Code Enforcement Officer, Heather Johnson said possibly. She stated that the CMTC was a voluntary, non-profit, program the City could opt into. The state would not take precedence if Palo Alto did not have a set of regulations. People with no formal training in the field of massage would be able to practice in Palo Alto. She said she could not identify cities that did not have ordinance regulations because the focus was on cities that had and studied their municipal code. Council Member Klein said the City had an Ordinance for 15 years that was in a state of suspense and asked if there had been any problems. Ms. Wagner said no. She said in an attempt to be a little more compliant to the changing regulations only portions of the existing Ordinance were suspended. The City continued to allow new practitioners to practice and did background checks. No fees were charged, and no site inspections were made. Council Member Klein said the massage field had its share of problems with prostitution and asked if there had been problems along those lines or in the practice of massage in Palo Alto in the past 30 years. Ms. Johnson said there had been problems. She said 99.9 percent of the therapists did a great job and provided a good service but a small portion did not. Council Member Klein asked about the Reflexology issue. Ms. Johnson said adopting an ordinance to accommodate Reflexology seemed reasonable. Businesses that were discussed at this evening’s meeting did not fall into the category of Reflexology. The Happy Feet Foot Spa practice fell into the description of massage. Their technique was not limited to touching hands, feet, and ears as regulations defined by the Reflexology Association of California. The issue of Reflexology was not addressed because patrons had described the service they received from the Happy Feet Foot Spa fit the definition of massage. Council Member Klein asked about the situation in the Cities of Mountain View and Los Altos. 7 Ms. Wagner stated that the City of Mountain View accommodated a non- certified massage establishment. The establishment and therapist paid fees but was exempted from education requirements. Council Member Klein said his understanding was that there was intent to exempt sole proprietorship. Ms. Wagner said that was incorrect. She said the definition of a sole proprietor was a single person, massage establishment. It basically was a person practicing massage in a rented room in an office space. Charlie Cullen, Deputy Director of Technical Services, clarified that was prohibited under the old Ordinance and a new category was created in order to certify sole proprietors. The City of Mountain View’s situation was an exception to the rule and had a special category that most other municipalities did not support in their ordinance. The City of Los Altos was on tract to require CMATC certification only and not provide any another method to qualify under their local ordinance. Council Member Klein said it was still unclear what was being accomplished for a sole proprietorship massage establishments. Ms. Wagner said in the effort to try to identify massage therapists they were not aware of that were practicing in Palo Alto, they discovered a large number of individuals who had their own personal offices, their own businesses that were single individuals, renting spaces and had clients. The PAPD deemed Palo Alto as a city that should be pro-business. They felt it was inappropriate to have 75 percent of the therapist not be state-certified. This was an incentive to work with these individuals to allow them to run a successful business, which meant having to change current regulations and to allow single persons to have sole proprietorship establishments. Council Member Klein asked if that individual was being regulated. Ms. Wagner said yes, if they were not state-certified. Council Member Klein said he was having trouble with the language as written in the Municipal Code. He said 4.54.020 defined a massage establishment as any establishment with more than one massage technician. Ms. Wagner said that was correct. It was a single person acting as a business owner and a massage technician. 8 Council Member Klein said his interpretation of the code was that this was one individual not subjected to the City’s regulation. Mr. Larkin said the individual was not subjected to the establishment regulations but was subjected to the individual permit regulations. Council Member Klein asked Mr. Larkin where that statement was located and if it referred to the statement “the technician permit would be required.” Mr. Larkin said yes. Council Member Schmid stated the document did not state this was a Police Department matter and needed clarification on why a law enforcement officer was representing the City. Ms. Wagner stated that a Code Enforcement Officer’s position was charged with enforcing this statute. The position assumed the permitting of taxicabs, alarms, massage establishments, solicitors, but she was not sure how far back the history was of the Code Enforcement Officer assuming the responsibility of permitting. Council Member Schmid said Council Member Klein mentioned there were problems in the field of massage in the 70’s and asked if there had been any problems since. He raised concerns that the Police Department was occupied with critical activities and asked if the field of massage was one of them. Ms. Wagner said 99.9 percent of the time there were none but could be a pervasive problem in communities. She confirmed that Palo Alto had its share of illicit activities but no recent incidents had been identified in massage parlors. Passage of the Ordinance would bring the issue to state law and help the Code Enforcement Officer oversee that the practice of massage functioned accordingly in the community. Council Member Schmid said his contact with the Police was through the Police Blotter in the newspaper and had assumed that every police call was listed. He said he did not recall seeing incidents or complaints that pertained to illicit sexual activities. Ms. Wagner confirmed they had gotten calls and some that required special investigation procedures but none were in massage establishments. Council Member Schmid said it would be helpful and important to have a statement that identified these issues in terms of the number of past and 9 present complaints along with the number of incidents that occurred in neighboring cities. The information would identify that these issues were activities handled by the Police Department and not by another City department. Mr. Cullen clarified that historically the issues that Council Member Klein referred to in the 70’s became an enforcement issue for the Police Department. The enforcement permitting process fell under the Police Department’s jurisdiction when the Ordinance was enacted and remained with the Police Department. The Police Department’s Code Enforcement Officer was a non-sworn, civilian, officer who enforced a number of other ordinances and in charge of permitting, ensured that practitioners complied with the rules and the Ordinance. The Code Enforcement Office could initiate an investigation if she saw an illicit activity occurring but the criminal aspect would be investigated by a sworn officer. Council Member Schmid raised concerns that the CAMTC was a non-profit organization that provided education and certification and that a CAMTC permitted practitioner would be outside the local code enforcement. He asked if that implied that a CAMTC permitted individual was not in danger of illicit activity. Ms. Wagner clarified that the CAMTC had a rigorous application process and had the ability to suspend, revoke, or deny a permit based on a complaint. CAMTC thresholds of complaints were low. Their investigation process was extensive and a practitioner under investigation would face heavy scrutiny. Mr. Larkin clarified that the CAMTC was a non-profit organization, a public benefit corporation created by the state government and a quasi- governmental agency similar to the state bar for attorneys. It was not an independent, non-profit without government functions. Council Member Schmid raised concerns regarding establishments to maintain a logbook. Ms. Wagner clarified the logbook was similar to a hotel registry. Law enforcement officers could review the information but would require a court order. The method was to assist both in the defense or prosecution of a therapist working at a business. Council Member Schmid asked if other professions such as physical therapist or personal trainers were asked to maintain a logbook. 10 Ms. Wagner said they did kept records that contained contact information, such as name, address, phone number and services performed. Hair dressers often maintained a logbook for the purpose of sending out mailers. Council Member Schmid stated that would be different than a logbook that contained specific dates, times, and detailed descriptions of services received. Mr. Cullen clarified that the Police Department was sensitive to the issues involved. Customer records in massage establishments would require a subpoena in order for a law enforcement officer to view the records. The process would be similar to any other business that faced a criminal investigation. He wanted to make clear that the subpoena requirement was added to the regulations. Council Member Schmid said the definition of a massage was touching of the exterior space of the body and could include several areas. He felt the definition of massage was too broad. Reflexology stated they did not have the same temptations that led to past abuses. He asked what definition did the Police Department use and if they felt it was too broad. Ms. Wagner stated the practice of massage involved the manipulation or applying pressure to the body. There was the threat of possible injury to the body during manipulation as well as criminal or sexual aspect that could occur. The definition of massage needed to be broad. The intent of the Ordinance was not to focus on the Reflexologist’s scope of work limited to the hands, feet, and ears but work that extended to the manipulation, applying pressure, and touching all over the body. Council Member Schmid noted that one of the speakers stated that half of the states make a distinction between massage therapy and Reflexology. He said the definition was not a standard definition but an interpretation and broader than others used. Council Member Espinosa stated what the Committee was hearing were issues of trying to determine a problem and how to fix it. There was the issue of illicit activities in Palo Alto and for the Council to support the Police Department to quickly address the situation. The other was how the proposed Ordinance change would impact the massage businesses in terms of people getting healthcare services, training requirements for employees, and wanting to protect the public. The impacts would affect the massage business, entrepreneurs, and small businesses without a real good cause and change an industry on services they were able to provide in the 11 community. He asked what Staff’s thoughts were on his comments and if there were concerns in respect to the development of the Ordinance. Ms. Wagner said everyone’s needs were considered in developing the Ordinance. She said that the category “sole proprietorship” was created to allow businesses to occur, to define massage and that all establishments played by the same rules. Additionally, state-certified people would be exempted. Council Member Espinosa asked if information could be collected regarding illicit activities, not on individual cases, if the Committee wanted to get a better understanding if the problem was significant enough to move forward to consider other impacts. Ms. Wagner explained that the nature of illicit activities occurred behind closed doors and did not know if accurate data could be obtained on the number of illicit activities that occurred. Council Member Espinosa asked if full cost recovery was the goal of the price point. Mr. Cullen said cost recovery probably did not cover Staff’s time spent in the implementation and moving forward on permitting. Council Member Espinosa asked Staff what the timeline would be to carve out the Reflexology portion and to come back to the Committee to address the issue. Ms. Wagner said it could take a few months. There were establishments that referred to themselves as Reflexology and performed other services. She did not think it would be necessary to develop an Ordinance solely for Reflexology. She said a definition could be added to the Ordinance to exempt Reflexology. Council Member Espinosa said the speakers touched on issues the Police Department felt that needed stricter regulations such as the method used to wash down equipment, separate faucets to accommodate hot and cold running water, terminology issues, and implementation dates. He asked if Staff could respond to these issues, was Staff in disagreement, or if further discussions needed to occur. Ms. Wagner said the intent was to apply regulations governed by state laws for municipalities to enforce health and safety rules that applied to massage businesses. She said the terminology issues could be revisited to see if a 12 better term could be used to define “technicians”, “practitioners” and therapists”. Mr. Larkin stated that Staff attempted to answer many of the questions during individual meetings with the practitioners and Staff would revisit comments that were overlooked. Council Member Schmid said Reflexology was an alternative type of practice and had a separate form of certification process. He felt that the Happy Feet Foot Spa was not Reflexology or the standard therapy and appeared to be innocuous. He said there was a spectrum of activities that seemed outside the boundaries that was focused on in reviewing the definitions. He suggested looking at how neighboring jurisdictions dealt with their ordinances, not just in a general sense, but what were the differences and how they might apply to what the City was dealing with. Ms. Wagner said they had reviewed other city ordinances and found there were different distinctions. She disagreed with the statement that the situation of having clothes on in an open room was different from clothes off in a closed room. She felt because there was a layer of clothing between the person’s hands and the body they were working on that through pressure and manipulation did not mean a criminal act could not occur. Happy Feet Foot Spa practiced Reflexology but the major portion of their service was full body massage. She understood why people appreciated the low-cost massage option. The intent of the Police Department was not to put anyone out of business. The Happy Feet Foot Spa proprietors were offered solutions to comply with the proposed Ordinance and time for their employees to get proper training. Mr. Bertelsen’s response was that Happy Feet Foot Spa would be put out of business if the employees received the proper education and would leave for better jobs. The Police Department wanted to see the Happy Feet Foot Spa to continue their operations in Palo Alto; however, their practices met the definition of massage and would need to comply with the same rules as other massage businesses in Palo Alto. MOTION: Council Member Klein moved, seconded by Council Member Espinosa that Staff return to the Policy and Services Committee with revised language for the recommended ordinance that excludes Reflexology. Council Member Klein stated that businesses were not always regulated. Regulations came about because of abuses in one form or another. One issue that resulted from licensing was people tried to move around boundaries to have lower-cost alternatives. Society did not allow people who were not appropriately state-certified to do things that were close to what licensed people did and resulted in disagreements. He said he would 13 be willing to exempt Happy Feet Foot Spa on the same basis as a Reflexology, but if their practice fitted the definition of massage they would need to comply with the same rules. He asked if Reflexology should have a licensing procedure. Mr. Larkin agreed. Council Member Espinosa said he agreed with Council Member Klein’s comments, but not for all the same reasons. He was in agreement of moving the item forward but did not agree that the City needed broad regulations around the field of massage. He felt that when the item was brought back to the full Council there would be Council Members that will raise the question of what was the problem that Staff was trying to resolve, why the proposed revision was needed, and how the Ordinance would solve those problems. He supported the Motion. Council Member Schmid suggested having a clear statement that identified the problem and how the regulations would deal with the problem. He said it would be helpful for Staff to return with more information regarding the ordinances in other cities. The City could do a comparison to what other municipalities were doing in regards to their ordinances. Ms. Tucker said in moving forward it might be helpful for Staff to come back with information regarding historical investigations and arrests around this type of behavior both locally as well as surrounding jurisdictions. The information provided would be done on general information and not individual cases. MOTION PASSED 3-0, Holman Absent City of Palo Alto (ID # 2708) Policy and Services Committee Staff Report Report Type: Meeting Date: 4/10/2012 April 10, 2012 Page 1 of 5 (ID # 2708) Summary Title: Massage Ordinance Follow-up Title: Review and Recommend Council Approval of Proposed Updated Massage Ordinance From: City Manager Lead Department: Police Recommendation Staff recommends that the Policy and Services Committee review the proposed updated Massage Ordinance and recommend approval of the ordinance to the City Council. Executive Summary The draft ordinance was presented to the Policy and Services Committee on February 14, 2012. Committee members requested additional information be prepared and changes be considered to the draft ordinance. Staff has reviewed the proposed ordinance and completed modifications taking into consideration the requests of the Committee and community members. Staff is also prepared to further discuss the modifications and address the questions brought forth at the previous meeting. Background At the February 14, 2012, Policy and Services Committee meeting staff presented proposed revisions to the existing Massage Ordinance, Palo Alto Municipal Code 4.54. Changes to the ordinance are necessitated by new state legislation that changed municipalities’ ability to regulate the practice of massage. Palo Alto’s existing ordinance is in violation of the new state law. Staff revised the ordinance to comply with state law and made additional changes to facilitate the ability of existing practitioners to remain in business. At the meeting, staff outlined the applicable state laws relating to massage regulation and described the input from 1 Packet Pg. 4 April 10, 2012 Page 2 of 5 (ID # 2708) the massage community from several previous meetings. Staff explained how that input was taken into account when drafting the ordinance and how the proposed fee structure was derived. After much discussion from staff and community members, the Policy and Services Committee recommended that modifications to the ordinance be considered and the following questions be addressed at a follow-up meeting on April 10, 2012: 1. Why is it necessary to make the proposed ordinance changes? 2. Why is it necessary to regulate massage at all in the City of Palo Alto? 3. Does the City of Palo Alto have problems with crimes related to massage? 4. Why is there a need for massage establishments to keep client contact records? 5. Are there ordinance language changes that can be made for the establishment requirements in the areas of hot/cold water, table coverings, and the need for safety boxes? 6. What do other cities do with massage and reflexology regulation? 7. What type of language can be added to the ordinance to cover reflexologists and reflexology-only businesses? Discussion Staff conducted additional research and is prepared to address the questions and changes requested by the Committee. 1) Why is it necessary to make the proposed ordinance changes? The current ordinance is out of compliance with state law changes that were made in September 2009. The City of Palo Alto has regulated massage since 1974 when questionable massage establishments were flourishing on El Camino Real. Most states within our country regulate massage to some 1 Packet Pg. 5 April 10, 2012 Page 3 of 5 (ID # 2708) degree and most cities within our’s and adjacent counties have massage ordinances. 2) Why is it necessary to regulate massage at all in the City of Palo Alto? Massage therapy involves full body touching, unlike any other therapy outside of the medical profession. Due to the nature of massage, the predominant types of crimes reported in the massage setting are sexual in nature. Studies have shown that sexual assault crimes are vastly underreported and are likely to happen to many females in a variety of settings, both public and private. The Police Department has received complaints of unwanted sexual contact from customers of massage businesses. In addition, during a community meeting, several massage practitioners told staff they have been victims of unwanted sexual contact by clients. Illegitimate massage businesses have a high likelihood of using victims of Human Trafficking in their business. As most municipalities in the Bay Area have some form of Massage regulation, there is a real risk of attracting illegitimate enterprises to an unregulated environment. 3) Does the City of Palo Alto have problems with crimes related to massage? Over the past 10 years, ten sexual assault-type crimes have been investigated at Palo Alto massage establishments. Research into the availability of adult sensual massage in Palo Alto revealed multiple websites advertizing business to persons in Palo Alto. The crime of prostitution does occur in Palo Alto but is difficult to prosecute without complicated police sting operations. Data from the Records Management System shows Police and Fire responded to 67 calls for service at the three largest massage establishments since the beginning of 2005. 4) Why is there a need for massage establishments to keep client contact records? The purpose of client contact records is to assist law enforcement in fact- finding when criminal allegations are made involving massage therapists. Most other municipalities require client contact reords to be kept. The 1 Packet Pg. 6 April 10, 2012 Page 4 of 5 (ID # 2708) information would only be available to law enforcement with a court order. Client records could aid in an investigation, either to prove or disprove allegations of misconduct against massage practitioners or clients. 5) Are there ordinance language changes that can be made for the establishment requirements in the areas of hot/cold water, table coverings, and the need for safety boxes? Staff reviewed the sections pertaining to hot and cold water availability in establishments and did not make any changes. Staff believes that the existing language allows for flexibility in how hot and cold water is provided. Staff reviewed the section pertaining to establishment table covering material and did not make any changes, because the existing language only requires that tables and table coverings be washable. Specific coverings are suggested, but not required. Staff reviewed the section of hand-drying options and added electric hand-drying devices as an allowable option. Staff reviewed the section requiring locked boxes for personal possessions and removed the requirement. Refer to Attachment A. 6) What do other cities do with massage and reflexology regulation? Many cities in Santa Clara and San Mateo Counties have massage ordinances. Please refer to Attachment B for a comparison of Palo Alto with 13 other cities. Only one city surveyed, Citrus Heights, included a reflexology exemption in its massage ordinance. 7. What type of language can be added to the ordinance to cover reflexologists and reflexology-only businesses? In response to requests from reflexologists who attended the February 14th Committee meeting, staff reviewed the draft ordinance and added a definition for “reflexology” based on definitions from other states that regulate reflexology. Additional language was added to the ordinance to exempt reflexologists when practicing in Palo Alto. 1 Packet Pg. 7 April 10, 2012 Page 5 of 5 (ID # 2708) Resource Impact The revised ordinance will have no fiscal impact on the City. The code enforcement officer who administers the massage permitting program will have additional duties and responsibilities. Timeline Staff recommends presenting the draft ordinance changes to City Council at the next available meeting following approval by the Policy and Services Committee. Attachments: -: Attachment A - PAMC 4.54 (PDF) -: Attachment B - Massage Spreadsheet 032612 (PDF) -: Attachment C - February P&S - Massage Ordinance Minutes -EXCERPT (PDF) Prepared By: April Wagner, Police Lieutenant Department Head: Dennis Burns, Police Chief City Manager Approval: ____________________________________ James Keene, City Manager 1 Packet Pg. 8 1 ***Proposed Massage Municipal Code*** 4.54.010 Purpose and intent. It is the purpose and intent of this chapter to provide for the orderly regulation of massage establishments and massage technicians, as defined in this chapter, in the interests of the public health, safety, and welfare by providing certain minimum building, sanitation and health standards for massage establishments, and by providing certain minimum qualifications for the operators of massage establishments and for massage technicians and massage technician trainees. Unless otherwise indicated, the requirements of this Code shall not apply to massage practitioners and therapists certified by the California Massage Therapy Council (CAMTC) or establishments in which the owners and all practitioners are CAMTC certified. 4.54.020 Definitions. (a) For the purpose of this chapter, unless the context clearly requires a different meaning, the words, terms and phrases set forth in this section shall have the meanings given them in this section: (1) "Massage” means any method of pressure on, or friction against, or stroking, kneading, rubbing, tapping, pounding, vibrating or stimulating the external parts of the human body with the hands or with the aid of any mechanical or electrical apparatus, or other appliances or devices, with or without such supplementary aids as rubbing alcohol, liniment, antiseptic, oil, powder, cream, lotion, ointment or other similar preparations. (2) “Massage technician" means any person who administers massages, baths or health treatments involving massage or baths as the principal functions to another person for any consideration whatsoever. (3) “Massage technician trainee” means a student who works in a massage establishment under the supervision and direction of a massage technician who has received a permit issued under the provisions of this chapter. (4) "Massage establishment" means any establishment with more than one massage technician having a fixed place of business where any, firm, association, partnership, corporation, joint venture or combination of individuals engages in, conducts, carries on or permits to be engaged in, conducted or carried on massages, baths or health treatments involving massage or baths, where massage is part of primary function of the business. (5) "Sole Proprietor Massage establishment" means any owner-operated establishment having a fixed place of business where an individual, carries on or permits to be engaged in, conducted or carried on massages, baths or health treatments involving massage or baths as the principal functions. 1.a Packet Pg. 9 -: A t t a c h m e n t A - P A M C 4 . 5 4 ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 2 (6) “Recognized school of massage” means any school or institution of learning which teaches the theory, ethics, practice, profession and work of massage. The student shall possess a diploma or certificate of graduation from such school or institution of learning following the successful completion of such course of study or learning, and which school has been approved pursuant to California Education Code Section 29025, or, if said school is not located in California, has complied with standards commensurate with those required in said Section 29025. Any school or institution of learning offering or allowing correspondence course credit not requiring actual attendance at class, or courses of a massage technician not approved by the California State Department of Education shall not be deemed a "recognized school of massage." (7) “Reflexology” Reflexology is the application of specific pressure by the use of the practitioner’s hands, thumb, and fingers to reflex points in the client’s hands, feet, or ears using alternating pressure, and such techniques as thumb walking, finger walking, hook and back up, and rotation on a reflex. (8) "Permit" means the permit to engage in the activities of a massage technician or a massage technician trainee as required by this chapter. (9) "Person" means any individual, firm, association, partnership, corporation, joint venture or combination of individuals. (10) “California Massage Therapy Council” (CAMTC) means the governing non- profit board that is authorized to evaluate qualifications of massage therapists and issue certification in the State of California. (11) “Accessory Technician Permit” A technician who is not a sole proprietorship may be eligible to receive an accessory technician permit. This permit will allow massage to be conducted within a business that is not a massage establishment, provided the following requirements are met: a. The technician must provide the police department with sufficient evidence to demonstrate that he or she is an independent contractor or an employee of the business. b. The business is not in the regular business of providing massage. c. The technician must obtain a massage technician permit as required by section 4.54.060 of this code. 4.54.030 Massage establishment permit required. (a) Except as otherwise provided, it is unlawful for any person to engage in, conduct or carry on, in or upon any premises within the city the operation of massage establishment without a permit obtained from the chief of police, as required by this chapter. A massage establishment permit shall be issued to any person who has complied 1.a Packet Pg. 10 -: A t t a c h m e n t A - P A M C 4 . 5 4 ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 3 with the requirements of Sections 4.54.050 and 4.54.110 of this chapter, and all other applicable provisions of this code or state law, as applicable; unless grounds for denial of such permit are found to exist. In addition to those set forth in Section 4.04.140, grounds for denial include: (1) The applicant made a material misstatement in the application for a permit; (2) The applicant has, within five years immediately preceding the date of the filing of the application, been convicted in a court of competent jurisdiction of an offense involving conduct which requires registration under California Penal Code Section 290, or any violations of Sections 311 through 311.7, 313.1, 314, 315, 316, 318 or 647(a), 647(b), 647(d), or 647(h) of the California Penal Code, or of any offense involving theft of property or violence; (3) That the operation of a massage establishment, as proposed by the applicant if permitted, would not comply with all applicable laws including, but not limited to, all city ordinances and regulations; (4) That the operation of the proposed massage establishment is likely to be injurious to the health, safety, welfare, and interest of the people of the city; (5) That the applicant is lacking in the background and qualifications to conduct a bona fide massage establishment; or (6) That the applicant has violated any provision of this chapter, or of any similar ordinance, law, rule or regulation of another public agency which regulates the operation of massage establishments. (7) That the CAMTC has revoked, suspended, or denied the applicant a permit. 4.54.040 Massage establishment permit application fee; renewal (a) Any application for a permit to operate a massage establishment shall be accompanied by a nonrefundable fee as set forth in the municipal fee schedule. The application fee shall be used to defray, in part, the costs of investigation and report, and is not made in lieu of any other fees or taxes required under this code. (b) A permit to operate a massage establishment shall be renewed annually. The renewal fee shall be as set forth in the municipal fee schedule. In addition, the massage technician must also submit valid identification, massage certification and a completed new permit application. 4.54.050 Application for massage establishment permit. (a) Any application for a permit to operate a massage establishment shall be made with the chief of police. Within thirty working days following receipt of a completed application and LiveScan results, the chief of police shall either issue the permit or mail a 1.a Packet Pg. 11 -: A t t a c h m e n t A - P A M C 4 . 5 4 ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 4 written statement of his reasons for denial thereof. The application shall set forth the exact nature of the massage bath or health treatment to be administered, the proposed place of business and facilities therefore, and the name and address of each applicant. The chief of police may request the applicant to allow fingerprints to be taken when needed for the purpose of establishing identification. In addition to the requirements of Chapter 4.04 and this section, any applicant shall furnish the following items: 1. The address of the proposed location 2. The previous addresses of applicant, if any, for a period of three years immediately prior to the date of the application and the dates of residence at each; 3. Written proof that the applicant is at least eighteen years of age; 4. Applicant's height, weight, color of eyes and hair; 5. Two recent passport photos 6. Business, occupation or employment history of the applicant for the three years immediately preceding the date of the application; 7. If the applicant is a corporation, the name of the corporation shall be set forth exactly as shown in its articles of incorporation, together with the names and residence addresses of each of its officers, directors, and each stockholder holding more than five percent of the stock of the corporation. If the applicant is a partnership, the application shall set forth the name and residence address of each of the partners, including limited partners. If one or more of the partners is a corporation, the provisions of this section pertaining to a corporate applicant shall apply; 8. The names and residence addresses of all persons currently employed or intended to be employed in the massage establishment, regardless of the nature of the employment, other than any person permitted pursuant to Section 4.54.060, along with the proposed or actual nature of the work performed or to be performed, and recent passport-size photographs, suitable to the police officer or designee processing the application, of each such employee. The chief of police may require such employee to allow fingerprints to be taken for the purpose of identification. Any applicant or permitee shall notify the city in writing of the names, addresses and nature of the work, of any new employees, within five days of such employment, and supply the photographs described in this subsection. Such new employees shall allow fingerprints to be taken for the purpose of identification upon request. "Employee" includes every owner, partner, manager, supervisor and worker, whether paid or not, who renders personal services of any nature in the operation of a massage establishment. 9. Such other information as may be deemed necessary by the chief of police. (b) Proof of malpractice insurance coverage or equivalent with a minimum of $100,000 coverage shall be required within 30 days of permit issuance. 4.54.060 Massage technician permit required. (a) It is unlawful for any person to act as a massage technician or a massage technician trainee unless such person holds a valid permit issued by the chief of police or 1.a Packet Pg. 12 -: A t t a c h m e n t A - P A M C 4 . 5 4 ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 5 a certification from the CAMTC. A massage technician permit shall be issued to any person who has fulfilled the requirements of Section 4.54.080, and all other provisions of this code or state law, as applicable; unless grounds for denial of such permit are found to exist. In addition to those set forth in Section 4.04.140, grounds for denial include: (1) The applicant made a material misstatement in the application for a permit; (2) The applicant has, within five years immediately preceding the date of the filing of the application, been convicted in a court of competent jurisdiction of an offense involving conduct which requires registration under California Penal Code Section 290, or any violations of Sections 311 through 311.7, 313.1, 314, 315, 316, 318 or 647(a), 647(b), 647(d), or 647(h) of the California Penal Code, or of any offense involving theft of property or violence; (3) That the issuance of the permit is likely to be injurious to the health, safety, welfare, and interest of the people of the city; (4) That the applicant is lacking in the background and qualifications to act as a massage technician; or (5) That the applicant has violated any provision of this chapter, or of any similar ordinance, law, rule or regulation of another public agency which regulates the operation of massage establishments or massage technicians. (6) That the CAMTC has revoked, suspended, or denied the applicant a permit. (b) A permit issued by the chief of police is not required for any massage technician and massage establishments if the owners and all technicians are massage practitioners or therapists, who are operating under a valid certificate issued by the Massage Therapist Organization (also known as the California Massage Therapy Council), per Chapter 10.5 (Commencing with Section 4600) of Division 2 of the California Business and Professions Code relating to massage therapy, provided however, that such person and business shall not be exempted from this Article if Chapter 10.5 is repealed. However notification of the CAMTC certification number must still be made to the police department where the CAMTC permit holder is working. 4.54.065 Education Requirements (a) General educational requirements. Except as indicated below, all applicants for a Massage Technician permit must meet the following educational standards to qualify for such permit, at the discretion of the Chief of Police: (1) Possession of a diploma or certificate of completion from a “recognized school of massage” which shows satisfactory completion of a resident course of study of a minimum of two hundred (200) verifiable hours on the theory, ethics, history, practice, and/or methods of massage therapy, including the study of anatomy, physiology and hygiene. 1.a Packet Pg. 13 -: A t t a c h m e n t A - P A M C 4 . 5 4 ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 6 (b) Exemptions from educational requirements. The following persons are exempt from the educational requirements set forth in subsection (a) above: (1) Holders of Massage Establishment business permits and Massage Technician business permits issued by the City before the effective date of this Chapter shall have a period of eighteen (18) months from the effective date of this Chapter to satisfy the educational requirements set forth in subsection (a) above. (2) Eighteen (18) months from the effective date of this ordinance, any therapist who does not have the required 200 hours of education will not be permitted to practice massage in Palo Alto. However, the chief of police may provide special consideration on a case-by-case basis to those massage technicians who can prove through documentation that they are currently enrolled in coursework associated with massage therapy and compliance of the 200 hour requirement is expected within a reasonable amount of time. 4.54.070 Massage technician application fee. Any application for a permit to act as a massage technician shall be accompanied by a nonrefundable fee as set forth in the municipal fee schedule. A massage technician permit shall be renewed annually. The renewal fee shall be as set forth in the municipal fee schedule. Any person who applies for a permit to operate a massage establishment and who desires to act as a massage technician within said establishment shall not be required to furnish the information set forth in Section 4.54.080. 4.54.080 Application for massage technician permit. (a) Any application for a permit to act as a massage technician shall be made with the chief of police. Within thirty working days following receipt of a completed application and LiveScan results, the chief of police shall either issue the permit, or mail a written statement of his reasons for denial thereof. If he takes neither action, the permit shall be deemed to be issued. The chief of police may request the applicant to furnish fingerprints when needed for the purpose of establishing identification. In addition to the requirements of Chapter 4.04, the applicant shall furnish the following items: (1) Name, residence address and telephone number; (2) Social security number and driver's license number, if any; (3) Applicant's weight, height, color of hair and eyes; (4) Two recent passport photos of applicant; (5) Written evidence that the applicant is at least eighteen years of age; 1.a Packet Pg. 14 -: A t t a c h m e n t A - P A M C 4 . 5 4 ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 7 (6) Business, occupation or employment of the applicant for the three years immediately preceding the date of application; (7) The name and address of the establishment where the applicant is to be employed, and the name of the owner or operator of the same. Any massage technician granted a permit pursuant to this section must report a change in massage establishment employment within five days of said change; (8) The name and address of the “recognized school of massage” attended, the date attended, and a copy of the diploma or certificate of graduation awarded to the applicant, or other documentation showing the applicant has completed 200 hours. 4.54.090 Massage technician trainee. (a) Any person desiring to obtain a permit to act as a massage technician trainee shall make an application to the chief of police. Within thirty working days following receipt of a completed application and having received LiveScan results, the chief of police shall either issue the permit, or mail a written statement of his reasons for denial thereof. If he takes neither action, the permit shall be deemed to be issued. A massage technician trainee permit shall be issued to any person who has fulfilled all the requirements of Section 4.54.080, except item (8), and who produces written proof that the applicant is currently enrolled in a “recognized school of massage”, as defined in this chapter; of the date the applicant enrolled in the recognized school of massage; and the scheduled date of graduation; and that the applicant has completed at least fifty hours of instruction and the date this instruction was completed; provided the applicant submits a letter signed by the owner or manager of a permitted massage establishment stating his immediate intent to employ the applicant to do massage as a trainee working under the direct supervision and control of a massage technician who has received a permit under the provisions of this chapter unless: (1) The applicant knowingly made a material misstatement in the application for the trainee permit; or (2) The applicant has, within five years immediately preceding the date of the filing of the application, been convicted in a court of competent jurisdiction of an offense involving conduct which requires registration under California Penal Code Section 290, or any violation of Sections 311 through 311.7, 313.1, 314, 315, 316, 318 or 647(a), 647(b), 647(d) or 647(h) of the California Penal Code or of any offense involving theft of property. No fee shall be required of a massage technician trainee applicant. The trainee must at all times comply with the laws relating to massage establishments, and the failure to comply may render the trainee ineligible to obtain a massage technician permit. Any massage technician trainee who, during the life of the trainee permit, completes the instruction required of a massage technician, shall be issued a massage technician 1.a Packet Pg. 15 -: A t t a c h m e n t A - P A M C 4 . 5 4 ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 8 permit upon payment of a massage technician application fee as set forth in the municipal fee schedule. 4.54.100 Appeal. In the event a permit or permit application has been denied, the applicant shall proceed pursuant to the appeal and hearing provision in Chapter 4.04. 4.54.110 Massage establishment facilities and operations requirements. (a) Except as otherwise indicated, all massage establishments, including those certified by CAMTC, shall comply with the following facilities and operations requirements: (1) Massage establishments shall comply with all code requirements. (2) A minimum of one toilet and wash basin shall be provided in every massage establishment. (3) Cabinets or other covered space shall be provided for the storage of clean linen. Approved receptacles shall be provided for the storage of all soiled linen and paper towels. (4) Minimum ventilation shall be provided in accordance with the building code of the city. To allow for adequate ventilation in cubicles, rooms and areas provided for patrons' use, which are not serviced directly by required window or mechanical systems of ventilation, partitions shall be constructed so that the height of partition does not exceed seventy-five percent of the floor-to-ceiling height of the area in which they are located. (5) All plumbing and electrical installations shall be installed under permit and inspection of the building inspection department, and such installations shall be installed in accordance with the Uniform Building Code and the Uniform Plumbing Code. (6) The walls in all rooms where water or steam baths are given shall have a washable, mold-resistant surface. (7) All lavatories or wash basins shall be provided with hot and cold running water, soap and single-service towels and/or hot-air hand dryers. (8) Every portion of a massage establishment, including appliances, apparatus and personnel, shall be kept clean and operated in a sanitary condition. (9) All massage establishments shall provide clean and sanitary towels, sheets and linens in sufficient quantity. Towels, sheets and linens shall not be used by more than one 1.a Packet Pg. 16 -: A t t a c h m e n t A - P A M C 4 . 5 4 ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 9 person. Reuse of such linen is prohibited unless the same has first been laundered. Heavy white paper may be substituted for sheets; provided, that such paper is used once for each person and then discarded into a sanitary receptacle. (10) All walls, ceilings, floors, pools, showers, bathtubs, steam rooms and all other physical facilities for the establishment must be in good repair and maintained in a clean and sanitary condition. Wet and dry heat rooms, steam or vapor rooms, or steam or vapor cabinets, shower compartments and toilet rooms shall be thoroughly cleaned and disinfected each day the business is in operation. Bathtubs shall be thoroughly cleaned and disinfected after each use. (11) Disinfecting agents and sterilizing equipment shall be provided for any instruments used in performing acts of massage and said instruments shall be disinfected and sterilized after each use. (12) Pads used on massage tables shall be covered with durable, washable plastic or other acceptable waterproof material. (13) (A) To protect patrons from potential health and sanitary hazards, all employees, massage technicians and massage technician trainees shall be clean and shall perform all services on the premises in full, clean outer garments. (B) Exception. A massage technician may perform services wearing no clothing or wearing less than full outer garments when teaching a class gathered to learn the theory, practice, or work of massage, and when said class consists in part of massage by the technician or members of the gathered class. The following items, (14) through (17), shall not apply to CAMTC certified establishments: (14) Each service offered, the price thereof, and the minimum length of time such service shall be performed shall be posted or shall be available in a conspicuous public location in each massage establishment. All letters and numbers shall be capitals, and not smaller than 14 point font. (15) (A) Massage establishments shall close and remain closed from eleven p.m. (11 p.m.) to nine a.m. (9:00 a.m.) (B) After one year of operation a massage establishment may be exempted from the hours restrictions of this section by the chief of police upon a written request which details the factual reasons supporting good cause for the exemption. The chief of police, in determining what constitutes good cause for this exemption from the hours restrictions, shall consider and weight the following factors: (i) The criteria outlined in Section 4.04.140 of Chapter 4.04; 1.a Packet Pg. 17 -: A t t a c h m e n t A - P A M C 4 . 5 4 ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 10 (ii) The criteria outlined in Section 4.54.030 of this chapter; (iii) The impact which the massage establishment has had on the health, safety, and welfare of the local community, including, but not limited to, parking and traffic congestion; (iv) The massage establishment's compliance or noncompliance with all federal, state, and local laws, including, but not limited to, this municipal code. If, upon review of those factors, the chief of police determines that good cause does exist for the requested exemption, the chief may then exempt the particular massage establishment from the hours restrictions of this section. However, in no event shall any massage establishment close later than two a.m. nor open earlier than six a.m. (C) The exemption from the hours restrictions of this section shall be subject to review and renewal annually at the same time as the renewal of the underlying permit and the same factual showing shall be made as that required for the initial exemption. The chief shall not grant an hours exemption unless said establishment has maintained the criteria specified in Section 4.54.110(a)(16)(B). (16) Every massage establishment and sole proprietor massage establishment shall keep written client records of the following: the date and hour of each service; the name, contact information and sex of each patron; the service provided, and the technician administering the service. A massage establishment is not required to provide client records to the City or any other enforcement agency without an order from a court of competent jurisdiction authorizing the release. (17) Off-premises Massage Prohibited. Except as otherwise provided, no person, , shall engage in any of the services permitted under this chapter at any place other than an establishment permitted pursuant to Chapter 4.54. 4.54.120 Inspection by officials. Any and all investigating officials of the city shall have the right to enter massage establishments from time to time during regular business hours to make reasonable inspections to observe and enforce compliance with building, fire, electrical, plumbing or health regulations. A warrant shall be obtained whenever required by law. 4.54.130 Business name. No person permitted to operate a massage establishment shall operate under any name or conduct business under any designation not specified in the permit. 4.54.140 Business location change. 1.a Packet Pg. 18 -: A t t a c h m e n t A - P A M C 4 . 5 4 ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 11 Upon a change of location of a massage establishment, an application to the chief of police shall be made, and such application shall be granted, provided all applicable provisions of this code are complied with and a change of location fee as set forth in the municipal fee schedule to defray, in part, the costs of investigation and report, has been paid to the city. 4.54.150 Sale or transfer of massage establishment interest. A sale or transfer of any interest in a massage establishment, which interest would be reported as required in this chapter upon application for a massage establishment permit, shall be reported to the chief of police within ten days of such sale or transfer. The chief of police shall investigate any person receiving any interest in a massage establishment as a result of such sale or transfer, and if such person satisfies the requirements relating to massage establishment permit applicants, the existing permit shall be endorsed to include such person. A fee as set forth in the municipal fee schedule shall be paid to the city for the investigation by the chief of police necessitated by each such sale or transfer. 4.54.160 Display of permits, permits. The owner or operator of a massage establishment shall display the massage establishment permit and the permit of each and every massage technician or massage technician trainee employed in the establishment in an open and conspicuous place on the premises or keep the permits together in a designated area, such that the permits are easily accessible for inspection. Passport-size photographs of permittees shall be affixed to the respective permits on display pursuant to this section. Home addresses of massage technicians and massage technician trainees need not be displayed. A fine for continued violation will be collected in an amount to be determined by resolution of the City Council. 4.54.170 Exemptions. The provisions of this Chapter shall not apply to the following classes of individuals while engaged in the performance of the duties of their respective professions: (1) Physicians, surgeons, chiropractors, osteopaths or physical therapists who are duly permitted to practice their respective professions in the state of California; (2) Nurses registered under the laws of the state of California; (3) Barbers and beauticians who are duly permitted under the laws of the state of California. (4) Reflexologists performing reflexology; however any reflexologist engaged in massage shall be required to comply with the provisions of this Chapter. 4.54.180 Grounds for denial, probation, and disciplinary action. 1.a Packet Pg. 19 -: A t t a c h m e n t A - P A M C 4 . 5 4 ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 12 In addition to any provisions of this chapter, the grounds set forth in Section 4.04.140 shall apply to permits and permits required under this chapter. Any circumstances constituting grounds for denial shall also constitute grounds for revocation, suspension or disciplinary action. 4.54.190 Hearing. Any permittee whose permit has been suspended or revoked shall proceed pursuant to the appeal and hearing provisions of Chapter 4.04. 4.54.200 Application to existing establishments and technicians. All operators of existing massage bath or health treatment establishments, and all persons engaged in giving massage, bathing and health treatments in the city upon the effective date of this chapter shall begin the application process and comply with all application and other requirements within sixty (60) days following the effective date of this chapter. 4.54.210 Application of other code provisions. Chapters 1.08 and 4.04 shall apply to the subject matter of this chapter in all respects, including those not specifically mentioned in this chapter. 1.a Packet Pg. 20 -: A t t a c h m e n t A - P A M C 4 . 5 4 ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) Massage Ordinance Comparison-April 2012 Agency Education Client Records Liability Insurance City Permit Option Exempt Foot Massage Reflexology Language Belmont 500 yes $500,000 yes no no Burlingame 500 yes $500,000 yes no no CAMTC 250 no no n/a no no Citrus Heights* 200 no $2,000,000 yes no yes-exempt reflexology Foster City 500 yes $500,000 yes no no Los Gatos 300 yes $100,000 yes no no Millbrae 500 yes $500,000 yes no uses term 'reflexology' but requires the same permit as massage Mountain View 100 no no yes no but they have 'noncertified' massage establishments no PA(Proposed) 200 yes $100,000 yes considering considering Redwood City CAMTC only CAMTC only CAMTC only CAMTC only CAMTC only CAMTC only San Carlos CAMTC only CAMTC only CAMTC only CAMTC only CAMTC only CAMTC only San Mateo 200 yes $100,000 practitioner $500,000 est.yes no no SMCSO CAMTC only CAMTC only CAMTC only CAMTC only CAMTC only CAMTC only Sunnyvale 100 yes $1,000,000 yes no no *only example of reflexology exemption 1. b Pa c k e t P g . 2 1 -: Attachment B - Massage Spreadsheet 032612 (2708 : Massage Ordinance Follow-up) 1 POLICY AND SERVICES COMMITTEE EXCERPT Regular Meeting February 14, 2012 Chairperson Price called the meeting to order at 6:04 p.m. in the Council Conference Room, 250 Hamilton Avenue, Palo Alto, California. Present: Espinosa, Klein, Schmid Absent: Holman (Chair) 1. Request Policy and Service Committee Review of the Proposed Ordinance Changes to Section 4.54 Massage Establishments. Assistant to the City Manager, Sheila Tucker stated she would be Staffing the Policy and Services Committee this year and looked forward to working with the Council and serving the Committee. Palo Alto Police Lieutenant, April Wagner stated that the City Attorney’s Office and Police Department Staff members had worked on the proposed Ordinance change for over a year. She said that the Palo Alto Municipal Code Ordinance 4.54 was enacted in 1974 to ensure lawful commerce of massage businesses in Palo Alto. The Palo Alto Police Department (PAPD) was responsible for enforcing the Ordinance. In 1996, state laws were anticipated to change the regulation of massage businesses. The City suspended enforcement on portions of the Ordinance that included, permit renewals, fee collections, and site inspections. Background checks and permitting of new massage applicants continued. The current Ordinance, as written, violated state law. The City had 191 City permitted or California Massage Therapy Council (CAMTC) certified massage therapists. Palo Alto had three permitted massage establishments; Water Course, Body Kneads, and the Massage Therapy Center. There were four establishments that should have been permitted under the current regulations. A City audit revealed two dozen unpermitted massage establishments in Palo Alto. The adoption of Senate Bill 731 (SB731) in September 2009 impacted the ability of municipalities to regulate the practice of massage and the CAMTC, a 1.c Packet Pg. 22 -: A t t a c h m e n t C - F e b r u a r y P & S - M a s s a g e O r d i n a n c e M i n u t e s - E X C E R P T ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 2 public, non-profit, benefit corporation was created. The corporation standardized and regulated the issuance of certificates to massage therapists and practitioners. Adoption of Assembly Bill 619 (AB619) in 2011, continued legislative work on portions of SB731 that were going to expire. Fifty percent of the massage therapists in Palo Alto were not state-certified. Many local municipalities revisited their ordinance since the passage of SB731. Staff reviewed local updated ordinances and worked with CAMTC Board Members in creating the document. An outreach program was conducted that involved citizens and therapists in a modification review of the Ordinance. Key objectives were to comply with State regulations, to insure qualified trained workers, exempted CAMTC certified practitioners or be permitted by the City, and allowed sole proprietorships in Palo Alto. The final draft change added language to exempt CAMTC holders from obtaining additional City massage permits, increased education from 100 to 200 hours from an accredited school, added sole proprietorship, required malpractice insurance, must display City permits as required by State law, and to maintain limited client records and made available by a court order. The new Ordinance eliminated special building and zoning requirements by State law and added the ability to deny a City permit to an applicant who had been denied, suspended, or had a CAMTC certificate revoked. The cost recovery fees for the program and Staff time were changed to be consistent with other cities. New establishment fees were $750, renewal fee $450; sole proprietorship fee $350, renewal fee $150; massage technician permit $300, renewal fee $150 for people that did not want to be state certified. A 2-year CAMTC certificate fee was $150, plus a $90 Livescan fingerprint or a criminal history check fee. Practitioners were required to have 250 hours and therapists 500 hours of education from an accredited school. CAMTC certified therapists not establishments. In conclusion, the proposed Ordinance would recognize and allow massage practice to occur in Palo Alto, allowed existing therapists and establishments to continue doing business, and allowed time for the therapists to comply with the requirements. Those who chose to patronize the establishments could feel confident that the therapist had met standardized qualifications. The Ordinance was consistent with other municipalities and state requirements. CAMTC Board Members found the draft Ordinance to be compliant with the state law. The passage of the Ordinance would allow the City to resume consistent enforcement on the massage businesses in Palo Alto. Mark Petersen-Perez, PaloAltoFreePress, spoke that massage therapists and practitioners had the right to deny law enforcement officials the ability to view the records unless they had a court order. The information was sensitive and confidential. 1.c Packet Pg. 23 -: A t t a c h m e n t C - F e b r u a r y P & S - M a s s a g e O r d i n a n c e M i n u t e s - E X C E R P T ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 3 Vice President Susan Mix, Reflexology Association of California (Association), stated that the Ordinance revision did not unfairly encompass Reflexology within the Massage Ordinance. She said the scope of practice of Reflexology was a non-invasive, natural system of stress reduction and worked on a fully clothed person and only shoes and socks were removed. Work was done from the ankle to the tips of the toes, from the wrists to the tips of the fingers and the outer ear. Reflexologists do not rub backs of a client. The average price charged per session in the Bay Area was $50 to $100. She raised concerns that there may be establishments that were misclassified in Palo Alto as Reflexology and were included in the Ordinance. She urged the City to adopt an exemption to the Massage Ordinance and to create a separate ordinance for professional Reflexologists to protect the public. She said the Association was willing to work with the PAPD to craft an exemption. Vicky Venter, Reflexologist, stated that Reflexology was not massage. The practice of Reflexology was to bring the body back to balance through relaxation through the nervous system and not the musculature system. She said Reflexology should not be governed under massage laws and should have its own laws to include setting educational standards to support public safety concerns. Christine Issel, Reflexologist and Representative of the American Reflexology Certification Board (ARCB), spoke regarding the regulation and licensing of Reflexology businesses. She said some of the requirements that needed to be considered for licensing were evidence of an ARCB certification, proof of membership from one of the professional organization such as the Reflexology Association of California, proof of practitioner liability insurance, Livescan fingerprints, a government issued identification and to require the disclosure form from the California Business and Professional Code. She suggested setting educational standards and fingerprint requirements with the license application to prevent blurring the law and operating under misleading premises. Beverly D’Urson stated that she patronized Happy Feet Foot Spa in Palo Alto. She opposed the revision to the Ordinance because it would take away the ability to choose certain healing techniques. She said the Happy Feet Foot Spa specialized in a certain massage technique and the revised ordinance would force their staff members to obtain a massage permit. Robert Hessen spoke in support of the Happy Feet Foot Spa and asked that new restrictions not be imposed on the establishment. He clarified that the operation functioned in a transparent, open atmosphere that did not encourage inappropriate behavior. He urged the decision-making members 1.c Packet Pg. 24 -: A t t a c h m e n t C - F e b r u a r y P & S - M a s s a g e O r d i n a n c e M i n u t e s - E X C E R P T ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 4 to examine the service that the Happy Feet Foot Spa offered before making a final decision. David Bertelsen, Happy Feet Foot Spa owner, raised concerns that the revision to the Ordinance would require staff members to be licensed under the new law. He urged the Council to reject the changes because anyone that practiced any form of massage would be grouped under one umbrella and would require unnecessary licensing. Ping Bertelsen, Happy Feet Foot Spa owner, stated neighboring cities did not require licensing for businesses similar to theirs and that Palo Alto law enforcement officers tried to convince them otherwise. He said the City of Mountain View had passed an ordinance specifically for their type of practice. A new category was created that exempted non-licensed massage practitioners from the standard massage licensing requirements. She said most of the south Bay Area establishments did not require licensing or fees that had the same type of business as theirs. Babs Mitchell stated that the Palo Alto Police Officers had placed restrictive requirements on various equipment and cleaning procedures in her establishment and stated the issues in question should be revisited. She felt that any establishment that practiced any type of massage should be under one ordinance. Dainuri Rott spoke in support of the Happy Feet Foot Spa. He said the services they offered were the only healthcare he used and were affordable. He asked the City to not enforce an ordinance that would force the establishment to discontinue their practice in Palo Alto. Robin Malmquist stated that the definition of the term “therapist”, “technician”, and “practitioner” used in the Ordinance did not coincide with the definition used by CAMTC. They should be the same, consistent, and easily understood. He asked that the Ordinance not be implemented until after all CAMTC applicants were certified. Applicants waiting to be certified were placed in a state of limbo and faced with having to make a choice to either follow the Ordinance route or CAMTC regulations. Council Member Klein asked if the state would occupy the massage field if the City did not move forward on the revision, and that the speakers at this evening’s meeting may or may not be governed by the state. Assistant City Attorney, Donald Larkin clarified that the state’s intent was to not occupy the field of massage if the City did not move forward on the proposed changes. The state’s attempt was to create a permitting system 1.c Packet Pg. 25 -: A t t a c h m e n t C - F e b r u a r y P & S - M a s s a g e O r d i n a n c e M i n u t e s - E X C E R P T ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 5 that would take people away from local regulations. He said the Council had three options: 1) to allow massage practice with a state permit enforced through an ordinance, which was similar to the ordinances in neighboring cities. 2) the City allow people to opt out of local regulations by getting state-certified, which the enacted ordinance change would do, and 3) to repeal the City’s Massage Ordinance and not require practitioners to obtain state certification and the option for no regulations. Council Member Klein restated that if the City did nothing, and the City repealed the City’s Ordinance, which was inconsistent with the state law, there would be no regulations at all. Mr. Larkin said practitioners would not be required to be state-certified and there would be no regulation at all. Council Member Klein asked how was this issue handled in unincorporated areas. Mr. Larkin said they were governed by a County ordinance. Council Member Klein said the state provided the City with a system where the City could opt in and state regulations would take over. Mr. Larkin said that was correct. The state preempted the City from regulating anyone certified by the state but did not preempt the City from anyone who was not state-certified. The state placed the responsibility on the City to regulate non-state certified practitioners. Council Member Klein asked if the City could adopt an ordinance that would require practitioners to pay an annual permit fee of $1 if the City felt it did not require any type of regulations. Mr. Larkin said the City could repeal the existing ordinance and not have any regulations or to have a level of regulation such as a $1 annual permit fee to track permitted practitioners. Council Member Klein asked Mr. Larkin if the City repealed the Ordinance and had no regulations, would there be no regulations set by the state. Mr. Larkin said that was correct. Council Member Klein asked if that had been done elsewhere. Mr. Larkin said not in the local area but could not confirm for statewide. 1.c Packet Pg. 26 -: A t t a c h m e n t C - F e b r u a r y P & S - M a s s a g e O r d i n a n c e M i n u t e s - E X C E R P T ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 6 Council Member Klein said there was an issue in the 1970’s and asked if the City had encountered issues in the field of massage within the last 30-years. He asked if this discussion would be taking place if the state had not enacted their law. Code Enforcement Officer, Heather Johnson said possibly. She stated that the CMTC was a voluntary, non-profit, program the City could opt into. The state would not take precedence if Palo Alto did not have a set of regulations. People with no formal training in the field of massage would be able to practice in Palo Alto. She said she could not identify cities that did not have ordinance regulations because the focus was on cities that had and studied their municipal code. Council Member Klein said the City had an Ordinance for 15 years that was in a state of suspense and asked if there had been any problems. Ms. Wagner said no. She said in an attempt to be a little more compliant to the changing regulations only portions of the existing Ordinance were suspended. The City continued to allow new practitioners to practice and did background checks. No fees were charged, and no site inspections were made. Council Member Klein said the massage field had its share of problems with prostitution and asked if there had been problems along those lines or in the practice of massage in Palo Alto in the past 30 years. Ms. Johnson said there had been problems. She said 99.9 percent of the therapists did a great job and provided a good service but a small portion did not. Council Member Klein asked about the Reflexology issue. Ms. Johnson said adopting an ordinance to accommodate Reflexology seemed reasonable. Businesses that were discussed at this evening’s meeting did not fall into the category of Reflexology. The Happy Feet Foot Spa practice fell into the description of massage. Their technique was not limited to touching hands, feet, and ears as regulations defined by the Reflexology Association of California. The issue of Reflexology was not addressed because patrons had described the service they received from the Happy Feet Foot Spa fit the definition of massage. Council Member Klein asked about the situation in the Cities of Mountain View and Los Altos. 1.c Packet Pg. 27 -: A t t a c h m e n t C - F e b r u a r y P & S - M a s s a g e O r d i n a n c e M i n u t e s - E X C E R P T ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 7 Ms. Wagner stated that the City of Mountain View accommodated a non- certified massage establishment. The establishment and therapist paid fees but was exempted from education requirements. Council Member Klein said his understanding was that there was intent to exempt sole proprietorship. Ms. Wagner said that was incorrect. She said the definition of a sole proprietor was a single person, massage establishment. It basically was a person practicing massage in a rented room in an office space. Charlie Cullen, Deputy Director of Technical Services, clarified that was prohibited under the old Ordinance and a new category was created in order to certify sole proprietors. The City of Mountain View’s situation was an exception to the rule and had a special category that most other municipalities did not support in their ordinance. The City of Los Altos was on tract to require CMATC certification only and not provide any another method to qualify under their local ordinance. Council Member Klein said it was still unclear what was being accomplished for a sole proprietorship massage establishments. Ms. Wagner said in the effort to try to identify massage therapists they were not aware of that were practicing in Palo Alto, they discovered a large number of individuals who had their own personal offices, their own businesses that were single individuals, renting spaces and had clients. The PAPD deemed Palo Alto as a city that should be pro-business. They felt it was inappropriate to have 75 percent of the therapist not be state-certified. This was an incentive to work with these individuals to allow them to run a successful business, which meant having to change current regulations and to allow single persons to have sole proprietorship establishments. Council Member Klein asked if that individual was being regulated. Ms. Wagner said yes, if they were not state-certified. Council Member Klein said he was having trouble with the language as written in the Municipal Code. He said 4.54.020 defined a massage establishment as any establishment with more than one massage technician. Ms. Wagner said that was correct. It was a single person acting as a business owner and a massage technician. 1.c Packet Pg. 28 -: A t t a c h m e n t C - F e b r u a r y P & S - M a s s a g e O r d i n a n c e M i n u t e s - E X C E R P T ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 8 Council Member Klein said his interpretation of the code was that this was one individual not subjected to the City’s regulation. Mr. Larkin said the individual was not subjected to the establishment regulations but was subjected to the individual permit regulations. Council Member Klein asked Mr. Larkin where that statement was located and if it referred to the statement “the technician permit would be required.” Mr. Larkin said yes. Council Member Schmid stated the document did not state this was a Police Department matter and needed clarification on why a law enforcement officer was representing the City. Ms. Wagner stated that a Code Enforcement Officer’s position was charged with enforcing this statute. The position assumed the permitting of taxicabs, alarms, massage establishments, solicitors, but she was not sure how far back the history was of the Code Enforcement Officer assuming the responsibility of permitting. Council Member Schmid said Council Member Klein mentioned there were problems in the field of massage in the 70’s and asked if there had been any problems since. He raised concerns that the Police Department was occupied with critical activities and asked if the field of massage was one of them. Ms. Wagner said 99.9 percent of the time there were none but could be a pervasive problem in communities. She confirmed that Palo Alto had its share of illicit activities but no recent incidents had been identified in massage parlors. Passage of the Ordinance would bring the issue to state law and help the Code Enforcement Officer oversee that the practice of massage functioned accordingly in the community. Council Member Schmid said his contact with the Police was through the Police Blotter in the newspaper and had assumed that every police call was listed. He said he did not recall seeing incidents or complaints that pertained to illicit sexual activities. Ms. Wagner confirmed they had gotten calls and some that required special investigation procedures but none were in massage establishments. Council Member Schmid said it would be helpful and important to have a statement that identified these issues in terms of the number of past and 1.c Packet Pg. 29 -: A t t a c h m e n t C - F e b r u a r y P & S - M a s s a g e O r d i n a n c e M i n u t e s - E X C E R P T ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 9 present complaints along with the number of incidents that occurred in neighboring cities. The information would identify that these issues were activities handled by the Police Department and not by another City department. Mr. Cullen clarified that historically the issues that Council Member Klein referred to in the 70’s became an enforcement issue for the Police Department. The enforcement permitting process fell under the Police Department’s jurisdiction when the Ordinance was enacted and remained with the Police Department. The Police Department’s Code Enforcement Officer was a non-sworn, civilian, officer who enforced a number of other ordinances and in charge of permitting, ensured that practitioners complied with the rules and the Ordinance. The Code Enforcement Office could initiate an investigation if she saw an illicit activity occurring but the criminal aspect would be investigated by a sworn officer. Council Member Schmid raised concerns that the CAMTC was a non-profit organization that provided education and certification and that a CAMTC permitted practitioner would be outside the local code enforcement. He asked if that implied that a CAMTC permitted individual was not in danger of illicit activity. Ms. Wagner clarified that the CAMTC had a rigorous application process and had the ability to suspend, revoke, or deny a permit based on a complaint. CAMTC thresholds of complaints were low. Their investigation process was extensive and a practitioner under investigation would face heavy scrutiny. Mr. Larkin clarified that the CAMTC was a non-profit organization, a public benefit corporation created by the state government and a quasi- governmental agency similar to the state bar for attorneys. It was not an independent, non-profit without government functions. Council Member Schmid raised concerns regarding establishments to maintain a logbook. Ms. Wagner clarified the logbook was similar to a hotel registry. Law enforcement officers could review the information but would require a court order. The method was to assist both in the defense or prosecution of a therapist working at a business. Council Member Schmid asked if other professions such as physical therapist or personal trainers were asked to maintain a logbook. 1.c Packet Pg. 30 -: A t t a c h m e n t C - F e b r u a r y P & S - M a s s a g e O r d i n a n c e M i n u t e s - E X C E R P T ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 10 Ms. Wagner said they did kept records that contained contact information, such as name, address, phone number and services performed. Hair dressers often maintained a logbook for the purpose of sending out mailers. Council Member Schmid stated that would be different than a logbook that contained specific dates, times, and detailed descriptions of services received. Mr. Cullen clarified that the Police Department was sensitive to the issues involved. Customer records in massage establishments would require a subpoena in order for a law enforcement officer to view the records. The process would be similar to any other business that faced a criminal investigation. He wanted to make clear that the subpoena requirement was added to the regulations. Council Member Schmid said the definition of a massage was touching of the exterior space of the body and could include several areas. He felt the definition of massage was too broad. Reflexology stated they did not have the same temptations that led to past abuses. He asked what definition did the Police Department use and if they felt it was too broad. Ms. Wagner stated the practice of massage involved the manipulation or applying pressure to the body. There was the threat of possible injury to the body during manipulation as well as criminal or sexual aspect that could occur. The definition of massage needed to be broad. The intent of the Ordinance was not to focus on the Reflexologist’s scope of work limited to the hands, feet, and ears but work that extended to the manipulation, applying pressure, and touching all over the body. Council Member Schmid noted that one of the speakers stated that half of the states make a distinction between massage therapy and Reflexology. He said the definition was not a standard definition but an interpretation and broader than others used. Council Member Espinosa stated what the Committee was hearing were issues of trying to determine a problem and how to fix it. There was the issue of illicit activities in Palo Alto and for the Council to support the Police Department to quickly address the situation. The other was how the proposed Ordinance change would impact the massage businesses in terms of people getting healthcare services, training requirements for employees, and wanting to protect the public. The impacts would affect the massage business, entrepreneurs, and small businesses without a real good cause and change an industry on services they were able to provide in the 1.c Packet Pg. 31 -: A t t a c h m e n t C - F e b r u a r y P & S - M a s s a g e O r d i n a n c e M i n u t e s - E X C E R P T ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 11 community. He asked what Staff’s thoughts were on his comments and if there were concerns in respect to the development of the Ordinance. Ms. Wagner said everyone’s needs were considered in developing the Ordinance. She said that the category “sole proprietorship” was created to allow businesses to occur, to define massage and that all establishments played by the same rules. Additionally, state-certified people would be exempted. Council Member Espinosa asked if information could be collected regarding illicit activities, not on individual cases, if the Committee wanted to get a better understanding if the problem was significant enough to move forward to consider other impacts. Ms. Wagner explained that the nature of illicit activities occurred behind closed doors and did not know if accurate data could be obtained on the number of illicit activities that occurred. Council Member Espinosa asked if full cost recovery was the goal of the price point. Mr. Cullen said cost recovery probably did not cover Staff’s time spent in the implementation and moving forward on permitting. Council Member Espinosa asked Staff what the timeline would be to carve out the Reflexology portion and to come back to the Committee to address the issue. Ms. Wagner said it could take a few months. There were establishments that referred to themselves as Reflexology and performed other services. She did not think it would be necessary to develop an Ordinance solely for Reflexology. She said a definition could be added to the Ordinance to exempt Reflexology. Council Member Espinosa said the speakers touched on issues the Police Department felt that needed stricter regulations such as the method used to wash down equipment, separate faucets to accommodate hot and cold running water, terminology issues, and implementation dates. He asked if Staff could respond to these issues, was Staff in disagreement, or if further discussions needed to occur. Ms. Wagner said the intent was to apply regulations governed by state laws for municipalities to enforce health and safety rules that applied to massage businesses. She said the terminology issues could be revisited to see if a 1.c Packet Pg. 32 -: A t t a c h m e n t C - F e b r u a r y P & S - M a s s a g e O r d i n a n c e M i n u t e s - E X C E R P T ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 12 better term could be used to define “technicians”, “practitioners” and therapists”. Mr. Larkin stated that Staff attempted to answer many of the questions during individual meetings with the practitioners and Staff would revisit comments that were overlooked. Council Member Schmid said Reflexology was an alternative type of practice and had a separate form of certification process. He felt that the Happy Feet Foot Spa was not Reflexology or the standard therapy and appeared to be innocuous. He said there was a spectrum of activities that seemed outside the boundaries that was focused on in reviewing the definitions. He suggested looking at how neighboring jurisdictions dealt with their ordinances, not just in a general sense, but what were the differences and how they might apply to what the City was dealing with. Ms. Wagner said they had reviewed other city ordinances and found there were different distinctions. She disagreed with the statement that the situation of having clothes on in an open room was different from clothes off in a closed room. She felt because there was a layer of clothing between the person’s hands and the body they were working on that through pressure and manipulation did not mean a criminal act could not occur. Happy Feet Foot Spa practiced Reflexology but the major portion of their service was full body massage. She understood why people appreciated the low-cost massage option. The intent of the Police Department was not to put anyone out of business. The Happy Feet Foot Spa proprietors were offered solutions to comply with the proposed Ordinance and time for their employees to get proper training. Mr. Bertelsen’s response was that Happy Feet Foot Spa would be put out of business if the employees received the proper education and would leave for better jobs. The Police Department wanted to see the Happy Feet Foot Spa to continue their operations in Palo Alto; however, their practices met the definition of massage and would need to comply with the same rules as other massage businesses in Palo Alto. MOTION: Council Member Klein moved, seconded by Council Member Espinosa that Staff return to the Policy and Services Committee with revised language for the recommended ordinance that excludes Reflexology. Council Member Klein stated that businesses were not always regulated. Regulations came about because of abuses in one form or another. One issue that resulted from licensing was people tried to move around boundaries to have lower-cost alternatives. Society did not allow people who were not appropriately state-certified to do things that were close to what licensed people did and resulted in disagreements. He said he would 1.c Packet Pg. 33 -: A t t a c h m e n t C - F e b r u a r y P & S - M a s s a g e O r d i n a n c e M i n u t e s - E X C E R P T ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) 13 be willing to exempt Happy Feet Foot Spa on the same basis as a Reflexology, but if their practice fitted the definition of massage they would need to comply with the same rules. He asked if Reflexology should have a licensing procedure. Mr. Larkin agreed. Council Member Espinosa said he agreed with Council Member Klein’s comments, but not for all the same reasons. He was in agreement of moving the item forward but did not agree that the City needed broad regulations around the field of massage. He felt that when the item was brought back to the full Council there would be Council Members that will raise the question of what was the problem that Staff was trying to resolve, why the proposed revision was needed, and how the Ordinance would solve those problems. He supported the Motion. Council Member Schmid suggested having a clear statement that identified the problem and how the regulations would deal with the problem. He said it would be helpful for Staff to return with more information regarding the ordinances in other cities. The City could do a comparison to what other municipalities were doing in regards to their ordinances. Ms. Tucker said in moving forward it might be helpful for Staff to come back with information regarding historical investigations and arrests around this type of behavior both locally as well as surrounding jurisdictions. The information provided would be done on general information and not individual cases. MOTION PASSED 3-0, Holman Absent 1.c Packet Pg. 34 -: A t t a c h m e n t C - F e b r u a r y P & S - M a s s a g e O r d i n a n c e M i n u t e s - E X C E R P T ( 2 7 0 8 : M a s s a g e O r d i n a n c e F o l l o w - u p ) FILENAME 1 POLICY AND SERVICES COMMITTEE Draft Action Minutes Regular Meeting April 10, 2011 1. Review and Recommend Council Approval of Proposed Updated Massage Ordinance. MOTION: Council Member Klien moved, seconded by Council Member Espinosa, that the Policy and Services Committee refer the Massage Ordinance back to Staff to revise a) eliminate records requirement, b) include exemption for non-certified massage practicioners, and c) review the remaining language to draft as light of an ordinance as possible. MOTION PASSED 4-0. 2. Discussion and Recommendation of Council Priority Setting Process MOTION: Council Member Klein moved, seconded by Council Member Schmid to place a context statement prior to the definition of a priority, to define a priority as an issue or topic which will receive particular, unusual, and significant attention during the year. The only items to be considered for priorities shall be those proposed in writing by Staff a week prior to the annual Council Retreat, or by one Council Member in time for inclusion in the packet for the annual Council Retreat. To have a three year time limit on priorities. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER the Policy and Services Committee will be the focus of establishing the process of integrating input from all Council Members on an equal basis and will start the process three months before the January sesison AMENDMENT TO MOTION: Council Member Espinosa moved, seconded by Chair Holman to include a goal of no more than three priorities in a year. FILENAME 2 AMENDMENT PASSED: 3-1, Klein no MOTION RESTATED: Council Member Klein moved, seconded by Council Member Schmid to place a context statement prior to the definition of a priority, to define a priority as an issue or topic which will receive particular, unusual, and significant attention during the year. There should be no more than three priorities in a year. The Policy and Services Committee would be the focus of establishing the process of integrating input from all Council Members on an equal basis and will start the process three months before the January Retreat. There will be a fixed list of topics to consider at the Retreat. There will be a goal of no more than three priorities per year. To have a three year time limit on priorities. Staff will prepare this proceedure and return to the Committee prior to returning to the Council. MOTION AS AMENDED PASSED: 4-0 3. Discussion on Policy and Services Committee Workplan Prioritization and Process for Handling New Business No Action ADJOURNMENT: Meeting adjourned at 9:43 p.m.       Policy and Services Committee   DRAFT EXCERPT    Page 1 of 3  Special Meeting June 12, 2012 Review and Recommend Approval of Massage Ordinance April Wagner, Police Lieutenant informed the Policy & Services Committee (Committee) their recommended changes to the Ordinance 1) eliminated the logbook requirement for establishments, 2) added the therapist classification of non-certified therapist (exempt from the education requirement), and 3) added the establishment classification of non-certified establishment (exempts employees of establishment from education requirement) had been made and Staff included lesser restrictions to the Ordinance. David Bertelsen appreciated the Committee recognizing the massage business models being different from other models. He suggested the modification of the fee structure for various reasons; he felt their particular establishment did not charge as high of a fee for the same services as other massage establishments; his staff was paid $10 on a per client basis plus any gratuity. He was asking the fee schedule to be equitable for the business conducted and not based on the type of business. Palo Alto Free Press spoke of Senate Bill 731 and believed it was an intrusion on small businesses because it belonged under the jurisdiction of the Health Department and not that of the Police Department. Babs Mitchel said in 2011 representatives from the massage community met with the Police Department and the City Attorney’s office to discuss suggested changes to the Ordinance. She did not have a clear understanding of Definition 4.54.020 item number 4 and she had concerns with Definition 4.54.030. Ms. Wagner noted the updated Ordinance the Committee Members received at their places before the meeting contained 2 corrections 1) CMTC meant all of the persons at the establishment had state certification and 2) the owners were not required to be certified. Council Member Espinosa said his understanding was Staff had made the recommended changes but there was an area where the Committee could make additional changes either with education levels, decreasing or DRAFT MINUTES     Page 2 of 3  Policy & Services Committee Special Meeting  Draft Excerpt 6/12/12  eliminating the liability insurance, and the non-certified for clothed massage in an open area. He believed the exemption itself addressed the non- certified clothed massage in an open area. Ms. Wagner said if the City wanted to establish CMTC level establishments it would eliminate the need for oversight of the massage therapists because the CMTC had their own regulation board. If that option was chosen by the Committee they could add the special exemption for non-certified therapists. Don Larkin, Assistant City Attorney noted the draft Ordinance included the exemption for the non-certified therapists where the massage was performed in an open room with a fully clothed client. Council Member Espinosa asked what the compelling reasons for elimination or reduction of liability insurance would be. Ms. Wagner noted the education level for certification was an increase of 100 hours. Staff’s view of the process was to gauge industry standards and see what was recommended, required, and reasonable. Palo Alto had a low requirement where the CMTC required a certification of 250 or 500 hours. Staff felt to equalize all areas their suggestion was to raise the required level of education to 200 hours. Liability insurance was an industry standard for protection of the clients and therapists. She explained if the Council chose not to implement that as a restriction it would be acceptable. Chair Holman pointed out there was a typographical error on under Definition 4.454.020 item number 4; "Massage establishment" means any establishment with more than one massage technician having a fixed place of business where any firm, association, partnership, corporation, joint venture or combination of individuals engages in, conducts, carries on or permits to be engaged in, conducted or carried on massages, baths or health treatments involving massage or baths, where massage is part of primary function of the business, the comma after any in the seconded line should be removed. MOTION: Council Member Klein moved, seconded by Council Member Schmid that the Policy and Services Committee recommend to the City Council approval of the Massage Ordinance as recommended by Staff with the typographical changes corrected as indicated. Council Member Klein felt Staff had accomplished the desired regulations requested by the Committee and it was ready to go before the full Council. DRAFT MINUTES     Page 3 of 3  Policy & Services Committee Special Meeting  Draft Excerpt 6/12/12  Council Member Espinosa agreed the regulations being recommended were beneficial for the patrons and the therapists and he believed if there was an issue to arise at a later date there would be no disputes returning to make adjustments to the regulations to correct the matter. The safety of the citizens was paramount. Council Member Schmid appreciated Staff’s responsiveness to the Committee’s recommendations. MOTION PASSED: 4-0 City of Palo Alto (ID # 2968) City Council Staff Report Report Type: Consent Calendar Meeting Date: 7/23/2012 July 23, 2012 Page 1 of 5 (ID # 2968) Summary Title: Approval of Contract for Channing/Lincoln Storm Drain -Phase II Title: Approval of a Contract with Valentine Corporation In The Amount of $1,947,368.50 for Channing Avenue/Lincoln Avenue Storm Drain Improvements -Phase II, Capital Improvement Program Project SD-11101 From:City Manager Lead Department: Public Works Recommendation Staff recommends that Council: 1.Approve and authorize the City Manager or his designee to execute the attached contract with Valentine Corporation (Attachment A) in the amount of $1,947,368.50 for the Channing Avenue/Lincoln Avenue Storm Drain Improvement Project –Phase II, Capital Improvement Program Project SD-11101; and 2.Authorize the City Manager or his designee to negotiate and execute one or more change orders to the contract with Valentine Corporation for related, additional but unforeseen work which may develop during the project, the total value of which shall not exceed $194,737. Background In 2005, the property owners of Palo Alto voted to increase their monthly storm drainage fee to fund a set of seven high-priority storm drain-related capital improvement projects, including improvements to the storm drain trunk pipelines along Channing and Lincoln Avenues. The existing storm drains along Channing and Lincoln Avenues are inadequate to convey the storm runoff from the surrounding neighborhoods. These pipelines convey storm runoff to the San Francisquito Creek Storm Water Pump Station, which was constructed in 2008 to July 23, 2012 Page 2 of 5 (ID # 2968) serve a 1250-acre watershed area in northeastern Palo Alto. Drainage system performance along Channing and Lincoln Avenues and throughout portions of the Duveneck-St Francis, Crescent Park, and Community Center neighborhoods will be greatly enhanced following completion of a series of storm drain upgrade projects. The work to be implemented under this contract comprises the second phase of this multi-phase project, which will provide drainage improvements 1) along Channing Avenue between Heather Lane and Newell Road, and 2) along Lincoln Avenue between Channing Avenue and Middlefield Road. Discussion Project Description The work to be performed under this contract is 1) the installation of a 48-inch diameter storm drain pipeline along the north side of Channing Avenue between Heather Lane and Newell Road, and 2) the installation of a 42-inch diameter storm drain pipeline along the east side of Lincoln Avenue between Channing Avenue and Middlefield Road. The project limits are depicted on the attached Location Map (Attachment B). The construction-related impacts of this project on neighborhood residents will be slightly less than the impacts of the first phase of the project because the streets are wider, the pipelines to be installed are smaller and easier to place, and the project will not include the extensive curb and gutter repairs undertaken in the first phase. Nevertheless, staff will keep the local residents and officials at Duveneck Elementary School up-to-date on the project status and strive to minimize the impacts of the project throughout the duration of construction. Bid Process On June 19, 2012, a notice inviting formal bids for the Channing Avenue Storm Drain Improvement Project –Phase II was posted at City Hall and sent to 12 builder’s exchanges and 21 contractors. The bidding period was twenty-one days. Bids were received from five qualified contractors on July 10, 2012, as listed on the attached Bid Summary (Attachment C). Summary of Bid Process July 23, 2012 Page 3 of 5 (ID # 2968) Bid Name/Number Channing Avenue/Lincoln Avenue Storm Drain Improvement Project –Phase II, Capital Improvement Program Project SD-11101 /IFB #146670 Proposed Length of Project 150 calendar days Number of Bids Mailed to Contractors 21 Number of Bids Mailed to Builder’s Exchanges 12 Total Days to Respond to Bid 21 Pre-Bid Meeting?No Number of Company Attendees at Pre-Bid Meeting Not applicable Number of Bids Received:5 Bid Price Range $1,947,368.50 to $2,332,625 Staff has reviewed all bids submitted and recommends that the bid of $1,947,368.50 submitted by Valentine Corporation be accepted and that Valentine Corporation be declared the lowest responsible bidder. The low bid is five percent below the engineer's estimate of $2,049,188. The change order amount of $194,737 (which equals 10 percent of the total contract) is requested for related, additional but unforeseen work which may develop during the project. Staff confirmed with the Contractor's State License Board that the contractor has an active license on file. Staff also contacted the listed references for Valentine Corporation and found that they have performed satisfactorily on past construction projects for other clients. Project Coordination The Channing Avenue/Lincoln Avenue Storm Drain Improvement Project –Phase II has been coordinated with other capital projects during the monthly Utilities/Public Works Department street work coordination meetings and by use of the Geographic Information System-based project coordination program. This project does not conflict with any upcoming Public Works or Utilities Department projects. Some of the existing sanitary sewer mains along Lincoln Avenue are in conflict with the proposed storm drain pipeline. Since these sewer mains were planned for rehabilitation in the near future by the Wastewater Utility, they will be replaced and relocated as part of this project. The cost of the sanitary sewer July 23, 2012 Page 4 of 5 (ID # 2968) replacement work will be funded by the Wastewater Collection Fund. The work has also been coordinated with other non-city utility agencies, whose underground facilities will need to be relocated as a result of the proposed pipeline installation. Due to the proximity of the work to Duveneck Elementary School, the construction was originally planned to take place during the school’s summer recess period. The project schedule was delayed due to complications during the design phase. As a result, the work will not start until school is back in session. In order to minimize the project’s impacts to children and parents traveling to and from school, the work along the school frontage and in the Channing Avenue/Alester Avenue intersection will be performed on weekends. Staff has also coordinated with the school principal to identify measures that will be implemented to ensure student safety during construction,as was done in Phase I of this project. Resource Impact Funding for the Channing Avenue/Lincoln Avenue Storm Drain Improvement Project –Phase II is available in Capital Improvement Program Project SD-11101. Funding for the replacement of sanitary sewer mains along Lincoln Avenue will be funded by the Wastewater Collection Fund Capital Improvement Program Project WC-11000. Policy Implications The recommendation does not represent any changes to existing City policies. Environmental Review This project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) under Section 15301 of the CEQA Guidelines as repair, maintenance and/or minor alteration of existing facilities and no further environmental review is necessary. Courtesy Copies Storm Drain Oversight Committee Chris Grierson, Duveneck Elementary School Principal July 23, 2012 Page 5 of 5 (ID # 2968) Karen White, Duveneck-St Francis Neighborhood Association Rick Ferguson, Community Center Neighbors’ Association Norm Beamer, Crescent Park Neighborhood Association Attachments: ·A-Contract C13146670 with Valentine Corporation (PDF) ·B -Location Map (PDF) ·C -Bid Summary (PDF) Prepared By:Joe Teresi, Senior Engineer Department Head:J. Michael Sartor, Director City Manager Approval: ____________________________________ James Keene, City Manager   Invitation for Bid (IFB) Package 1                              Rev. May 1, 2012  PART 3 –CONSTRUCTION CONTRACT C13146670                CONSTRUCTION CONTRACT    Contract No. C13146670        City of Palo Alto    and    Valentine Corporation      PROJECT  Storm Drain Improvement Project ‐ Phase II  Channing Avenue: Newell Road to Heather Lane  Lincoln Avenue: Channing Avenue to Middlefield Road   Invitation for Bid (IFB) Package 2                              Rev. May 1, 2012  PART 3 –CONSTRUCTION CONTRACT C13146670       CONSTRUCTION CONTRACT             TABLE OF CONTENTS      SECTION 1. INCORPORATION OF RECITALS AND DEFINITIONS……………………………….. ....................5  1.1 Recitals ................................................................................................................ 5  1.2 Definitions ........................................................................................................... 5  SECTION 2. THE PROJECT………………………………………………………………………………..............................5  SECTION 3. THE CONTRACT DOCUMENTS…………………………………………………………. .........................5            3.1           List of Documents …………………………………………………………………………………………......5            3.2           Order of Precedence ……………………………………………………………………………................6  SECTION 4. THE WORK …………………………………………………………………………………..............................6  SECTION 5. PROJECT TEAM …………………………………………………………………………...............................7  SECTION 6. TIME OF COMPLETION …………………………………………………………………............................7  6.1 Time Is of Essence........................................................................................……… 7  6.2 Commencement of Work..................................................................................... 7  6.3 Contract Time....................................................................................................... 7  6.4 Liquidated Damages............................................................................................. 7  6.4.1 Entitlement…………………………………………………………………………………………….   7 6.4.2 Daily Amount………………………………………………………………………………………….   8 6.4.3 Exclusive Remedy…………………………………………………………………………………..   8 6.4.4 Other Remedies…………………………………………………………………………………...     8 6.5 Adjustments to Contract Time........................................................................... … 8  SECTION 7. COMPENSATION TO CONTRACTOR………………………………………………………………………...  8  7.1 Contract Sum  ………………………………………………………………………………………………………Error! Bookmark not  defined.  7.2 Full Compensation …………………………………………………………………………………………….. 9  7.3 Compensation for Extra or Deleted Work …………………………………………………………….9  7.3.1 Self Performed Work…………………………………………………………………………………9 7.3.2 Subcontractors………………………………………………………………………………………….9 SECTION 8. STANDARD OF CARE...................................................................................................9  SECTION 9. INDEMNIFICATION......................................................................................................10  9.1 Hold Harmless ……………………………………………………………………………………………………..10  9.2 Survival ……………………………………………………………………………………………………………….10  SECTION 10. NONDISCRIMINATION ..............................................................................................10    Invitation for Bid (IFB) Package 3                              Rev. May 1, 2012  PART 3 –CONSTRUCTION CONTRACT C13146670  SECTION 11. INSURANCE AND BONDS ..........................................................................................10  SECTION 12. PROHIBITION AGAINST TRANSFERS..........................................................................11  SECTION 13. NOTICES....................................................................................................................11  13.1 Method of Notice ………………………………………………………………………………………………..11  13.2 Notice Recipients .................................................................................................  11  13.3 Change of Address ............................................................................................... 12  14.1 Resolution of Contract Disputes........................................................................... 12  14.2 Resolution of Other Disputes ............................................................................... 12  14.2.1 Non‐Contract Disputes …………………………………………………………………………………….12  14.2.2 Litigation, City Election …………………………………………………………...........................13  14.3 Submission of Contract Dispute …………………………………………………………………………..13  14.3.1 By Contractor …………………………………………………………………………………………. 13  14.3.2 By City ……………………………………………………………………………………………………. 13  14.4 Contract Dispute Resolution Process...............................................................…… 13  14.4.1 Direct Negotiation…………………………………………………………………………………….13  14.4.2 Deferral of Contract Disputes …………………………………………………………………   14  14.4.3 Mediation …………………………………………………………………………..14 14.4.4 Binding Arbitration ………………………………………………………………..15 14.5 Non‐Waiver …………………………………………………………………………………………………………16  SECTION 15. DEFAULT...................................................................................................................16  15.1 Notice of Default.................................................................................................. 16  15.2 Opportunity to Cure Default ................................................................................ 16  SECTION 16. CITY'S RIGHTS AND REMEDIES..................................................................................16  16.1 Remedies Upon Default ....................................................................................... 16  16.1.1 Delete Certain Services …………………………………………………………...........................16 16.1.2 Perform and Withhold ……………………………………………………………………………. 16  16.1.3 Suspend The Construction Contract ………………………………………………………….16  16.1.4 Terminate the Construction Contract for Default ……………………………………..17  16.1.5 Invoke the Performance Bond ………………………………………………………………….17  16.1.6 Additional Provisions ……………………………………………………………………………….17  16.2 Delays by Sureties................................................................................................ 17  16.3 Damages to City................................................................................................... 17  16.3.1 For Contractor's Default …………………………………………………………………………..17  16.3.2 Compensation for Losses ………………………………………………………………………….17 16.5 Suspension by City for Convenience..................................................................... 18  16.6 Termination Without Cause ................................................................................. 18  16.6.1 Compensation ………………………………………………………………………………………….18 16.6.2 Subcontractors …………………………………………………………………………………………18   Invitation for Bid (IFB) Package 4                              Rev. May 1, 2012  PART 3 –CONSTRUCTION CONTRACT C13146670  16.7 Contractor’s Duties Upon Termination................................................................. 19  SECTION 17. CONTRACTOR'S RIGHTS AND REMEDIES...................................................................19  17.1 Contractor’s Remedies......................................................................................... 19  17.1.1 For Work Stoppage …………………………………………………………………………………..19 17.1.2 For City's Non‐Payment …………………………………………………………………………… 19  17.2 Damages to Contractor ........................................................................................ 19  SECTION 18. ACCOUNTING RECORDS............................................................................................19  18.1 Financial Management and City Access..........................................................……. 19  18.2 Compliance with City Requests ........................................................................ …. 20  SECTION 19. INDEPENDENT PARTIES.............................................................................................20  SECTION 20. NUISANCE.................................................................................................................20  SECTION 21. PERMITS AND LICENSES............................................................................................20  SECTION 22. WAIVER....................................................................................................................20  SECTION 23. GOVERNING LAW .....................................................................................................20  SECTION 24. COMPLETE AGREEMENT ...........................................................................................21  SECTION 25. SURVIVAL OF CONTRACT..........................................................................................21  SECTION 26. PREVAILING WAGES..................................................................................................21  SECTION 27. NON APPROPRIATION ..............................................................................................21  SECTION 28. GOVERNMENTAL POWERS........................................................................................21  SECTION 29. ATTORNEY FEES........................................................................................................21  SECTION 30. COUNTERPARTS........................................................................................................22  SECTION 31. SEVERABILITY ...........................................................................................................22      Invitation for Bid (IFB) Package    5                  Rev. May 1, 2012  PART 3 – CONSTRUCTION CONTRACT C13146670    CONSTRUCTION CONTRACT    THIS CONSTRUCTION CONTRACT entered into on July 23, 2012 (“Execution Date”) by and between the CITY  OF PALO ALTO, a California chartered municipal corporation ("City"), and VALENTINE CORPORATION  ("Contractor"), is made with reference to the following:    R E C I T A L S:    A. City is a municipal corporation duly organized and validly existing under the laws of the State of  California with the power to carry on its business as it is now being conducted under the statutes of the  State of California and the Charter of City.    B. Contractor is a Corporation duly organized and in good standing in the State of California,  Contractor’s License Number 229225. Contractor represents that it is duly licensed by the State of  California and has the background, knowledge, experience and expertise to perform the obligations set  forth in this Construction Contract.    C. On June 19, 2012, City issued an Invitation for Bids (IFB) to contractors for the Storm Drain  Improvement Project‐Phase Ii (Channing Avenue: Newell Road To Heather Lane & Lincoln Avenue:  Channing Avenue To Middlefield Road) (“Project”).  In response to the IFB, Contractor submitted a bid.    D. City and Contractor desire to enter into this Construction Contract for the Project, and other  services as identified in the Bid Documents for the Project upon the following terms and conditions.    NOW THEREFORE, in consideration of the mutual promises and undertakings hereinafter set forth  and for other good and valuable consideration, the receipt and sufficiency of which are hereby  acknowledged, it is mutually agreed by and between the undersigned parties as follows:    SECTION 1 INCORPORATION OF RECITALS AND DEFINITIONS.    1.1 Recitals.    All of the recitals are incorporated herein by reference.    1.2 Definitions.    Capitalized terms shall have the meanings set forth in this Construction Contract and/or in the  General Conditions.  If there is a conflict between the definitions in this Construction Contract and  in the General Conditions, the definitions in this Construction Contract shall prevail.  SECTION 2 THE PROJECT.    The Project is the construction of the Storm Drain Improvement Project‐Phase II (Channing Avenue: Newell  Road To Heather Lane & Lincoln Avenue: Channing Avenue To Middlefield Road)  ("Project").    SECTION 3 THE CONTRACT DOCUMENTS.    3.1  List of Documents.  The Contract Documents (sometimes collectively referred to as “Agreement” or “Bid Documents”) consist  of the following documents which are on file with the Purchasing Division and are hereby incorporated by  reference.       1) Change Orders    Invitation for Bid (IFB) Package    6                  Rev. May 1, 2012  PART 3 – CONSTRUCTION CONTRACT C13146670    2) Field Change Orders    3) Contract    4) Project Plans and Drawings  5) Technical Specifications  6) Special Provisions  7)    Notice Inviting Bids  8)    Instructions to Bidders  9)    General Conditions  10) Bidding Addenda    11) Invitation for Bids    12) Contractor's Bid/Non‐Collusion Affidavit    13)   Reports listed in the Bidding Documents    14)   Public Works Department’s Standard Drawings and Specifications dated 2007 and                updated from time to time    15) Utilities Department’s Water, Gas, Wastewater, Electric Utilities Standards dated 2005  and updated from time to time    16)  City of Palo Alto Traffic Control Requirements    17)  City of Palo Alto Truck Route Map and Regulations    18)  Notice Inviting Pre‐Qualification Statements, Pre‐Qualification Statement, and Pre‐  Qualification Checklist (if applicable)    19)  Performance and Payment Bonds    20)  Insurance Forms      3.2  Order of Precedence.    For the purposes of construing, interpreting and resolving inconsistencies between and among the  provisions of this Contract, the Contract Documents shall have the order of precedence as set forth in the  preceding section.  If a claimed inconsistency cannot be resolved through the order of precedence, the City  shall have the sole power to decide which document or provision shall govern as may be in the best  interests of the City.  SECTION 4 THE WORK.    The Work includes all labor, materials, equipment, services, permits, fees, licenses and taxes, and all other  things necessary for Contractor to perform its obligations and complete the Project, including, without  Invitation for Bid (IFB) Package    7                  Rev. May 1, 2012  PART 3 – CONSTRUCTION CONTRACT C13146670    limitation, any Changes approved by City, in accordance with the Contract Documents and all Applicable  Code Requirements.    SECTION 5 PROJECT TEAM.    In addition to Contractor, City has retained, or may retain, consultants and contractors to provide  professional and technical consultation for the design and construction of the Project.  The Project requires  that Contractor operate efficiently, effectively and cooperatively with City as well as all other members of  the Project Team and other contractors retained by City to construct other portions of the Project.    SECTION 6 TIME OF COMPLETION.  6.1 Time Is of Essence.    Time is of the essence with respect to all time limits set forth in the Contract Documents.    6.2 Commencement of Work.    Contractor shall commence the Work on the date specified in City’s Notice to Proceed.       6.3 Contract Time.    Work hereunder shall begin on the date specified on the City’s Notice to Proceed and shall be  completed    not later than  .   within One Hundred Fifty  calendar days (150) after the commencement date specified in  City’s  Notice to Proceed.    6.4 Liquidated Damages.    6.4.1 Entitlement.    City and Contractor acknowledge and agree that if Contractor fails to fully and  satisfactorily complete the Work within the Contract Time, City will suffer, as a result of  Contractor’s failure, substantial damages which are both extremely difficult and  impracticable to ascertain.  Such damages may include, but are not limited to:  (i) Loss of public confidence in City and its contractors and consultants.  (ii) Loss of public use of public facilities.  (iii) Extended disruption to public.    Invitation for Bid (IFB) Package    8                  Rev. May 1, 2012  PART 3 – CONSTRUCTION CONTRACT C13146670    6.4.2 Daily Amount.    City and Contractor have reasonably endeavored, but failed, to ascertain the actual  damage that City will incur if Contractor fails to achieve Substantial Completion of the  entire Work within the Contract Time.  Therefore, the parties agree that in addition to all  other damages to which City may be entitled other than delay damages, in the event  Contractor shall fail to achieve Substantial Completion of the entire Work within the  Contract Time, Contractor shall pay City as liquidated damages the amount of $500 per  day for each Day occurring after the expiration of the Contract Time until Contractor  achieves Substantial Completion of the entire Work.  The liquidated damages amount is  not a penalty but considered to be a reasonable estimate of the amount of damages City  will suffer by delay in completion of the Work.    6.4.3 Exclusive Remedy.    City and Contractor acknowledge and agree that this liquidated damages provision shall  be City’s only remedy for delay damages caused by Contractor’s failure to achieve  Substantial Completion of the entire Work within the Contract Time.    6.4.4 Other Remedies.    City is entitled to any and all available legal and equitable remedies City may have where  City’s Losses are caused by any reason other than Contractor’s failure to achieve  Substantial Completion of the entire Work within the Contract Time.    6.5 Adjustments to Contract Time.    The Contract Time may only be adjusted for time extensions approved by City and agreed to by  Change Order executed by City and Contractor in accordance with the requirements of the  Contract Documents.  SECTION 7 COMPENSATION TO CONTRACTOR.    7.1 Contract Sum.    Contractor shall be compensated for satisfactory completion of the Work in compliance with the  Contract Documents the Contract Sum of One Million Nine Hundred Forty‐Seven Thousand Three  Hundred Sixty‐Eight Dollars And Fifty Cents ($1,947,368.50).       [This amount includes the Base Bid and Add Alternates  .]                        //        //        // Invitation for Bid (IFB) Package    9                  Rev. May 1, 2012  PART 3 – CONSTRUCTION CONTRACT C13146670    7.2 Full Compensation.    The Contract Sum shall be full compensation to Contractor for all Work provided by Contractor  and, except as otherwise expressly permitted by the terms of the Contract Documents, shall cover  all Losses arising out of the nature of the Work or from the acts of the elements or any unforeseen  difficulties or obstructions which may arise or be encountered in performance of the Work until  its Acceptance by City, all risks connected with the Work, and any and all expenses incurred due to  suspension or discontinuance of the Work.  The Contract Sum may only be adjusted for Change  Orders issued, executed and satisfactorily performed in accordance with the requirements of the  Contract Documents.    7.3 Compensation for Extra or Deleted Work.    The Contract Sum shall be adjusted (either by addition or credit) for Changes in the Work involving  Extra Work or Deleted Work based on one or more of the following methods to be selected by  City:  1. Unit prices stated in the Contract Documents or agreed upon by City and Contractor,   which unit prices shall be deemed to include Contractor Markup and   Subcontractor/Sub‐subcontractor Markups permitted by this Section.    2. A lump sum agreed upon by City and Contractor, based on the estimated Allowable   Costs and Contractor Markup and Subcontractor Markup computed in accordance   with this Section.    3. Contractor’s Allowable Costs, plus Contractor Markup and Subcontractor Markups   applicable to such Extra Work computed in accordance with this Section.    Contractor Markup and Subcontractor/Sub‐subcontractor Markups set forth herein are the full  amount of compensation to be added for Extra Work or to be subtracted for Deleted Work that is  attributable to overhead (direct and indirect) and profit of Contractor and of its Subcontractors  and Sub‐subcontractors, of every Tier.  When using this payment methodology, Contractor  Markup and Subcontractor/Sub‐subcontractor Markups, which shall not be compounded, shall be  computed as follows:    7.3.1 Markup Self‐Performed Work.    10% of the Allowable Costs for that portion of the Extra Work or Deleted Work to be  performed by Contractor with its own forces.    7.3.2 Markup for Work Performed by Subcontractors.    15% of the Allowable Costs for that portion of the Extra Work or Deleted Work to be  performed by a first Tier Subcontractor.        SECTION 8 STANDARD OF CARE.    Contractor agrees that the Work shall be performed by qualified, experienced and well‐supervised  personnel.  All services performed in connection with this Construction Contract shall be performed in a  manner consistent with the standard of care under California law applicable to those who specialize in  providing such services for projects of the type, scope and complexity of the Project.     Invitation for Bid (IFB) Package    10                  Rev. May 1, 2012  PART 3 – CONSTRUCTION CONTRACT C13146670    SECTION 9 INDEMNIFICATION.    9.1 Hold Harmless.    To the fullest extent allowed by law, Contractor will defend, indemnify, and hold harmless City, its  City Council, boards and commissions, officers, agents, employees, representatives and volunteers  (hereinafter collectively referred to as "Indemnitees"), through legal counsel acceptable to City,  from and against any and all Losses arising directly or indirectly from, or in any manner relating to  any of, the following:  (i) Performance or nonperformance of the Work by Contractor or its Subcontractors or Sub‐ subcontractors, of any tier;  (ii) Performance or nonperformance by Contractor or its Subcontractors or Sub‐ subcontractors of any tier, of any of the obligations under the Contract Documents;  (iii) The construction activities of Contractor or its Subcontractors or Sub‐subcontractors, of  any tier, either on the Site or on other properties;  (iv) The payment or nonpayment by Contractor to any of its employees, Subcontractors or  Sub‐subcontractors of any tier, for Work performed on or off the Site for the Project; and  (v) Any personal injury, property damage or economic loss to third persons associated with  the performance or nonperformance by Contractor or its Subcontractors or Sub‐ subcontractors of any tier, of the Work.    However, nothing herein shall obligate Contractor to indemnify any Indemnitee for Losses  resulting from the sole or active negligence or willful misconduct of the Indemnitee.  Contractor  shall pay City for any costs City incurs to enforce this provision.  Nothing in the Contract  Documents shall be construed to give rise to any implied right of indemnity in favor of Contractor  against City or any other Indemnitee.    9.2 Survival.    The provisions of Section 9 shall survive the termination of this Construction Contract.    SECTION 10 NONDISCRIMINATION.    As set forth in Palo Alto Municipal Code section 2.30.510, Contractor certifies that in the performance of  this Agreement, it shall not discriminate in the employment of any person because of the race, skin color,  gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status,  familial status, weight or height of such person. Contractor acknowledges that it has read and understands  the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination  Requirements and the penalties for violation thereof, and will comply with all requirements of Section  2.30.510 pertaining to nondiscrimination in employment.    SECTION 11 INSURANCE AND BONDS.    On or before the Execution Date, Contractor shall provide City with evidence that it has obtained insurance  and Performance and Payment Bonds satisfying all requirements in Article 11 of the General Conditions.   Failure to do so shall be deemed a material breach of this Construction Contract.    Invitation for Bid (IFB) Package    11                  Rev. May 1, 2012  PART 3 – CONSTRUCTION CONTRACT C13146670    SECTION 12 PROHIBITION AGAINST TRANSFERS.    City is entering into this Construction Contract based upon the stated experience and qualifications of the  Contractor and its subcontractors set forth in Contractor’s Bid.  Accordingly, Contractor shall not assign,  hypothecate or transfer this Construction Contract or any interest therein directly or indirectly, by  operation of law or otherwise without the prior written consent of City. Any assignment, hypothecation or  transfer without said consent shall be null and void.    The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of  Contractor or of any general partner or joint venturer or syndicate member of Contractor, if the Contractor  is a partnership or joint venture or syndicate or co‐tenancy shall result in changing the control of  Contractor, shall be construed as an assignment of this Construction Contract. Control means more than  fifty percent (50%) of the voting power of the corporation or other entity.     SECTION 13 NOTICES.    13.1 Method of Notice.    All notices, demands, requests or approvals to be given under this Construction Contract shall be given in  writing and shall be deemed served on the earlier of the following:  (i) On the date delivered if delivered personally;  (ii) On the third business day after the deposit thereof in the United States mail, postage prepaid, and   addressed as hereinafter provided;   (iii) On the date sent if sent by facsimile transmission;   (iv) On the date sent if delivered by electronic mail; or   (v) On the date it is accepted or rejected if sent by certified mail.     13.2 Notice Recipients.    All notices, demands or requests (including, without limitation, Claims) from Contractor to City   shall include the Project name and the number of this Construction Contract and shall be   addressed to City at:      To City:  City of Palo Alto     City Clerk     250 Hamilton Avenue     P.O. Box 10250     Palo Alto, CA 94303     Copy to:  City of Palo Alto     Public Works Administration     250 Hamilton Avenue     Palo Alto, CA 94301     Attn: Joe Teresi        Or      City of Palo Alto    Utilities Engineering    250 Hamilton Avenue    Palo Alto, CA 94301    Attn:        Invitation for Bid (IFB) Package    12                  Rev. May 1, 2012  PART 3 – CONSTRUCTION CONTRACT C13146670       In addition, copies of all Claims by Contractor under this Construction Contract shall be provided  to the following:    Palo Alto City Attorney’s Office  250 Hamilton Avenue  P.O. Box 10250  Palo Alto, California 94303       All Claims shall be delivered personally or sent by certified mail.    All notices, demands, requests or approvals from City to Contractor shall be addressed to:    Valentine Corporation  111 Pelican Way  San Rafael, Ca 94901  Attn:  Jack Miller      13.3 Change of Address.    In the event of any change of address, the moving party shall notify the other party of the change  of address in writing.  Each party may, by written notice only, add, delete or replace any  individuals to whom and addresses to which notice shall be provided.    SECTION 14 DISPUTE RESOLUTION.     14.1 Resolution of Contract Disputes.     Contract Disputes shall be resolved by the parties in accordance with the provisions of this   Section 14, in lieu of any and all rights under the law that either party have its rights  adjudged  by a trial court or jury.  All Contract Disputes shall be subject to the Contract  Dispute Resolution Process  set forth in this Section 14, which shall be the exclusive  recourse of Contractor and City for such  Contract Disputes.    14.2 Resolution of Other Disputes.     14.2.1 Non‐Contract Disputes.    Contract Disputes shall not include any of the following:  (i) Penalties or forfeitures prescribed by statute or regulation imposed by a  governmental agency;  (ii) Third party tort claims for personal injury, property damage or death relating to  any Work performed by Contractor or its Subcontractors or Sub‐subcontractors  of any tier;  (iii) False claims liability under California Government Code Section 12650, et. seq.;  (iv) Defects in the Work first discovered by City after Final Payment by City to  Contractor;  (v) Stop notices; or  (vi) The right of City to specific performance or injunctive relief to compel  performance of any provision of the Contract Documents.    Invitation for Bid (IFB) Package    13                  Rev. May 1, 2012  PART 3 – CONSTRUCTION CONTRACT C13146670    14.2.2 Litigation, City Election.    Matters that do not constitute Contract Disputes shall be resolved by way of an action  filed in the Superior Court of the State of California, County of Santa Clara, and shall not  be subject to the Contract Dispute Resolution Process. However, the City reserves the  right, in its sole and absolute discretion, to treat such disputes as Contract Disputes.  Upon written notice by City of its election as provided in the preceding sentence, such  dispute shall be submitted by the parties and finally decided pursuant to the Contract  Dispute Resolution Process in the manner as required for Contract Disputes, including,  without limitation, City’s right under Paragraph 14.4.2 to defer resolution and final  determination until after Final Completion of the Work.    14.3 Submission of Contract Dispute.    14.3.1 By Contractor.    Contractors may commence the Contract Dispute Resolution Process upon City's written  response denying all or part of a Claim pursuant to Paragraph 4.2.9 or 4.2.10 of the  General Conditions.  Contractor shall submit a written Statement of Contract Dispute (as  set forth below) to City within seven (7) Days after City rejects all or a portion of  Contractor's Claim.  Failure by Contractor to submit its Statement of Contract Dispute in a  timely manner shall result in City’s decision by City on the Claim becoming final and  binding.  Contractor’s Statement of Contract Dispute shall be signed under penalty of  perjury and shall state with specificity the events or circumstances giving rise to the  Contract Dispute, the dates of their occurrence and the asserted effect on the Contract  Sum and the Contract Time.  The Statement of Contract Dispute shall include adequate  supporting data to substantiate the disputed Claim.  Adequate supporting data for a  Contract Dispute relating to an adjustment of the Contract Time shall include both of the  following:  (i) All of the scheduling data required to be submitted by Contractor under the  Contract Documents to obtain extensions of time and adjustments to the  Contract Time and  (ii) A detailed, event‐by‐event description of the impact of each event on  completion of Work.  Adequate data to support a Statement of Contract Dispute  involving an adjustment of the Contract Sum must include both of the following:   (a) A detailed cost breakdown and   (b) Supporting cost data in such form and including such information and   other supporting data as required under the Contract Documents for   submission of Change Order Requests and Claims.  14.3.2 By City.    City's right to commence the Contract Dispute Resolution Process shall arise at any time  following City's actual discovery of the circumstances giving rise to the Contract Dispute.   City asserts Contract Disputes in response to a Contract Dispute asserted by Contractor.   A Statement of Contract Dispute submitted by City shall state the events or  circumstances giving rise to the Contract Dispute, the dates of their occurrence and the  damages or other relief claimed by City as a result of such events.    14.4 Contract Dispute Resolution Process.    The parties shall utilize each of the following steps in the Contract Dispute Resolution  Process in the sequence they appear below.  Each party shall participate fully and in good  faith in each step in the Contract Dispute Resolution Process, and good faith effort shall  be a condition precedent to the right of each party to proceed to the next step in the  process.    14.4.1 Direct Negotiations.    Designated representatives of City and Contractor shall meet as soon as possible (but not  later than ten (10) Days after receipt of the Statement of Contract Dispute) in a good  Invitation for Bid (IFB) Package    14                  Rev. May 1, 2012  PART 3 – CONSTRUCTION CONTRACT C13146670    faith effort to negotiate a resolution to the Contract Dispute.  Each party shall be  represented in such negotiations by an authorized representative with full knowledge of  the details of the Claims or defenses being asserted by such party in the negotiations,  and with full authority to resolve such Contract Dispute then and there, subject only to  City’s obligation to obtain administrative and/or City Council approval of any agreed  settlement or resolution.  If the Contract Dispute involves the assertion of a right or claim  by a Subcontractor or Sub‐subcontractor, of any tier, against Contractor that is in turn  being asserted by Contractor against City (“Pass‐Through Claim”), then the Subcontractor  or Sub‐Subcontractor shall also have a  representative attend the negotiations, with the same authority and knowledge as  described above.  Upon completion of the meeting, if the Contract Dispute is not  resolved, the parties may either continue the negotiations or any party may declare  negotiations ended.  All discussions that occur during such negotiations and all  documents prepared solely for the purpose of such negotiations shall be confidential and  privileged pursuant to California Evidence Code Sections 1119 and 1152.    14.4.2 Deferral of Contract Disputes.    Following the completion of the negotiations required by Paragraph 14.4.1, all  unresolved Contract Disputes shall be deferred pending Final Completion of the Project,  subject to City’s right, in its sole and absolute discretion, to require that the Contract  Dispute Resolution Process proceed prior to Final Completion.  All Contract Disputes that  have been deferred until Final Completion shall be consolidated within a reasonable time  after Final Completion and thereafter pursued to resolution pursuant to this Contract  Dispute Resolution Process. The parties can continue informal negotiations of Contract  Disputes; provided, however, that such informal negotiations shall not be alter the  provisions of the Agreement deferring final determination and resolution of unresolved  Contract Disputes until after Final Completion.    14.4.3 Mediation.    If the Contract Dispute remains unresolved after negotiations pursuant to Paragraph  14.4.1, the parties shall submit the Contract Dispute to non‐binding mediation before a  mutually acceptable third party mediator.    .1 Qualifications of Mediator.  The parties shall endeavor to select a mediator who  is a retired judge or an attorney with at least five (5) years of experience in  public works construction contract law and in mediating public works  construction disputes.  In addition, the mediator shall have at least twenty (20)  hours of formal training in mediation skills.    .2 Submission to Mediation and Selection of Mediator.  The party initiating  mediation of a Contract Dispute shall provide written notice to the other party  of its decision to mediate.  In the event the parties are unable to agree upon a  mediator within fifteen (15) Days after the receipt of such written notice, then  the parties shall submit the matter to the American Arbitration Association  (AAA) at its San Francisco Regional Office for selection of a mediator in  accordance with the AAA Construction Industry Mediation Rules.    .3 Mediation Process.  The location of the mediation shall be at the offices of City.   The costs of mediation shall be shared equally by both parties.  The mediator  shall provide an independent assessment on the merits of the Contract Dispute  and recommendations for resolution.  All discussions that occur during the  mediation and all documents prepared solely for the purpose of the mediation  shall be confidential and privileged pursuant to California Evidence Code  Sections 1119 and 1152.    Invitation for Bid (IFB) Package    15                  Rev. May 1, 2012  PART 3 – CONSTRUCTION CONTRACT C13146670    14.4.4 Binding Arbitration.    If the Contract Dispute is not resolved by mediation, then any party may submit the  Contract Dispute for final and binding arbitration pursuant to the provisions of California  Public Contract Code Sections 10240, et seq.  The award of the arbitrator therein shall be  final and may be entered as a judgment by any court of competent jurisdiction.  Such  arbitration shall be conducted in accordance with the following:    .1 Arbitration Initiation.  The arbitration shall be initiated by filing a complaint in  arbitration in accordance with the regulations promulgated pursuant to  California Public Contract Code Section 10240.5.    .2 Qualifications of the Arbitrator.  The arbitrator shall be approved by all parties.  The arbitrator shall be a retired judge or an attorney with at least five (5) years  of experience in public works construction contract law and in arbitrating public  works construction disputes.  In addition, the arbitrator shall have at least  twenty (20) hours of formal training in arbitration skills.  In the event the parties  cannot agree upon an arbitrator, the provisions of California Public Contract  Code Section 10240.3 shall be followed in selecting an arbitrator possessing the  qualifications required herein.    .3 Hearing Days and Location.  Arbitration hearings shall be held at the offices of  City and shall, except for good cause shown to and determined by the arbitrator,  be conducted on consecutive business days, without interruption or  continuance.    .4 Hearing Delays.  Arbitration hearings shall not be delayed except upon good  cause shown.    .5 Recording Hearings.  All hearings to receive evidence shall be recorded by a  certified stenographic reporter, with the costs thereof borne equally by City and  Contractor and allocated by the arbitrator in the final award.    .6 Limitation of Depositions.  The parties may conduct discovery in accordance  with the provisions of section 10240.11 of the Public Contract Code; provided,  however, that depositions shall be limited to both of the following:    (i) Ten (10) percipient witnesses for each party and 5 expert witnesses per  party.      Upon a showing of good cause, the arbitrator may increase the number of  permitted depositions.  An individual who is both percipient and expert shall, for  purposes of applying the foregoing numerical limitation only, be deemed an  expert.  Expert reports shall be exchanged prior to receipt of evidence, in  accordance with the direction of the arbitrator, and expert reports (including  initial and rebuttal reports) not so submitted shall not be admissible as  evidence.    .7 Authority of the Arbitrator.  The arbitrator shall have the authority to hear  dispositive motions and issue interim orders and interim or executory awards.    Invitation for Bid (IFB) Package    16                  Rev. May 1, 2012  PART 3 – CONSTRUCTION CONTRACT C13146670    .8 Waiver of Jury Trial.  Contractor and City each voluntarily waives its right to a  jury trial with respect to any Contract Dispute that is subject to binding  arbitration in accordance with the provisions of this Paragraph 14.4.4.   Contractor shall include this provision in its contracts with its Subcontractors  who provide any portion of the Work.    14.5 Non‐Waiver.    Participation in the Contract Dispute Resolution Process shall not waive, release or compromise  any defense of City, including, without limitation, any defense based on the assertion that the  rights or Claims of Contractor that are the basis of a Contract Dispute were previously waived by  Contractor due to Contractor’s failure to comply with the Contract Documents, including, without  limitation, Contractor’s failure to comply with any time periods for providing notice of requests  for adjustments of the Contract Sum or Contract Time or for submission of Claims or supporting  documentation of Claims.    SECTION 15 DEFAULT.    15.1 Notice of Default.    In the event that City determines, in its sole discretion, that Contractor has failed or refused to  perform any of the obligations set forth in the Contract Documents, or is in breach of any  provision of the Contract Documents, City may give written notice of default to Contractor in the  manner specified for the giving of notices in the Construction Contract.    15.2 Opportunity to Cure Default.  Except for emergencies, Contractor shall cure any default in performance of its obligations under  the Contract Documents within two (2) Days (or such shorter time as City may reasonably require)  after receipt of written notice.  However, if the breach cannot be reasonably cured within such  time, Contractor will commence to cure the breach within two (2) Days (or such shorter time as  City may reasonably require) and will diligently and continuously prosecute such cure to  completion within a reasonable time, which shall in no event be later than ten (10) Days after  receipt of such written notice.    SECTION 16 CITY'S RIGHTS AND REMEDIES.    16.1 Remedies Upon Default.    If Contractor fails to cure any default of this Construction Contract within the time period set forth  above in Section 15, then City may pursue any remedies available under law or equity, including,  without limitation, the following:    16.1.1 Delete Certain Services.    City may, without terminating the Construction Contract, delete certain portions of the  Work, reserving to itself all rights to Losses related thereto.    16.1.2 Perform and Withhold.     City may, without terminating the Construction Contract, engage others to perform the  Work or portion of the Work that has not been adequately performed by Contractor and  withhold the cost thereof to City from future payments to Contractor, reserving to itself  all rights to Losses related thereto.    16.1.3 Suspend The Construction Contract.     City may, without terminating the Construction Contract and reserving to itself all rights  to Losses related thereto, suspend all or any portion of this Construction Contract for as  Invitation for Bid (IFB) Package    17                  Rev. May 1, 2012  PART 3 – CONSTRUCTION CONTRACT C13146670    long a period of time as City determines, in its sole discretion, appropriate, in which  event City shall have no obligation to adjust the Contract Sum or Contract Time, and shall  have no liability to Contractor for damages if City directs Contractor to resume Work.    16.1.4 Terminate the Construction Contract for Default.    City shall have the right to terminate this Construction Contract, in whole or in part, upon  the failure of Contractor to promptly cure any default as required by Section 15.  City’s  election to terminate the Construction Contract for default shall be communicated by  giving Contractor a written notice of termination in the manner specified for the giving of  notices in the Construction Contract.  Any notice of termination given to Contractor by  City shall be effective immediately, unless otherwise provided therein.    16.1.5 Invoke the Performance Bond.    City may, with or without terminating the Construction Contract and reserving to itself all  rights to Losses related thereto, exercise its rights under the Performance Bond.    16.1.6 Additional Provisions.    All of City’s rights and remedies under this Construction Contract are cumulative, and  shall be in addition to those rights and remedies available in law or in equity.   Designation in the Contract Documents of certain breaches as material shall not waive  the City’s authority to designate other breaches as material nor limit City’s right to  terminate the Construction Contract, or prevent the City from terminating the  Agreement for breaches that are not material.  City’s determination of whether there has  been noncompliance with the Construction Contract so as to warrant exercise by City of  its rights and remedies for default under the Construction Contract, shall be binding on  all parties.  No termination or action taken by City after such termination shall prejudice  any other rights or remedies of City provided by law or equity or by the Contract  Documents upon such termination; and City may proceed against Contractor to recover  all liquidated damages and Losses suffered by City.    16.2 Delays by Sureties.    Without limiting to any of City’s other rights or remedies, City has the right to suspend the  performance of the Work by Contractor’s sureties in the event of any of the following:  (i) The sureties’ failure to begin Work within a reasonable time in such manner as to insure  full compliance with the Construction Contract within the Contract Time;  (ii) The sureties’ abandonment of the Work;  (iii) If at any time City is of the opinion the sureties’ Work is unnecessarily or unreasonably  delaying the Work;  (iv) The sureties’ violation of any terms of the Construction Contract;  (v) The sureties’ failure to perform according to the Contract Documents; or  (vi) The sureties’ failure to follow City’s instructions for completion of the Work within the  Contract Time.    16.3 Damages to City.    16.3.1 For Contractor's Default.    City will be entitled to recovery of all Losses under law or equity in the event of  Contractor’s default under the Contract Documents.     16.3.2 Compensation for Losses.    In the event that City's Losses arise from Contractor’s default under the Contract  Documents, City shall be entitled to withhold monies otherwise payable to Contractor  until Final Completion of the Project.  If City incurs Losses due to Contractor’s default,  then the amount of Losses shall be deducted from the amounts withheld.  Should the  amount withheld exceed the amount deducted, the balance will be paid to Contractor or  Invitation for Bid (IFB) Package    18                  Rev. May 1, 2012  PART 3 – CONSTRUCTION CONTRACT C13146670    its designee upon Final Completion of the Project.  If the Losses incurred by City exceed  the amount withheld, Contractor shall be liable to City for the difference and shall  promptly remit same to City.    16.4 Suspension by City for Convenience.    City may, at any time and from time to time, without cause, order Contractor, in writing, to  suspend, delay, or interrupt the Work in whole or in part for such period of time, up to an  aggregate of fifty percent (50%) of the Contract Time.  The order shall be specifically identified as  a Suspension Order by City.  Upon receipt of a Suspension Order, Contractor shall, at City’s  expense, comply with the order and take all reasonable steps to minimize costs allocable to the  Work covered by the Suspension Order.  During the Suspension or extension of the Suspension, if  any, City shall either cancel the Suspension Order or, by Change Order, delete the Work covered  by the Suspension Order.  If a Suspension Order is canceled or expires, Contractor shall resume  and continue with the Work.  A Change Order will be issued to cover any adjustments of the  Contract Sum or the Contract Time necessarily caused by such suspension.    A Suspension Order  shall not be the exclusive method for City to stop the Work.    16.5 Termination Without Cause.    City may, at its sole discretion and without cause, terminate this Construction Contract in part or  in whole by giving thirty (30) Days written notice to Contractor. The compensation allowed under  this Paragraph 16.5 shall be the Contractor’s sole and exclusive compensation for such  termination and Contractor waives any claim for other compensation or Losses, including, but not  limited to, loss of anticipated profits, loss of revenue, lost opportunity, or other consequential,  direct, indirect or incidental damages of any kind resulting from termination without cause.      16.5.1 Compensation.    Following such termination and within forty‐five (45) Days after receipt of a billing from  Contractor seeking payment of sums authorized by this Paragraph 16.5, City shall pay the  following to Contractor as Contractor’s sole compensation for performance of the Work :    .1 For Work Performed.  The amount of the Contract Sum allocable to the portion  of the Work properly performed by Contractor as of the date of termination,  less sums previously paid to Contractor.    .2 For Close‐out Costs.  Reasonable costs of Contractor and its Subcontractors and  Sub‐subcontractors for:  (i) Demobilizing and  (ii) Administering the close‐out of its participation in the Project (including,  without limitation, all billing and accounting functions, not including  attorney or expert fees) for a period of no longer than thirty (30) Days  after receipt of the notice of termination.    .3 For Fabricated Items.  Previously unpaid cost of any items delivered to the  Project Site which were fabricated for subsequent incorporation in the Work.    16.5.2 Subcontractors.      Contractor shall include provisions in all of its subcontracts, purchase orders and other  contracts permitting termination for convenience by Contractor on terms that are  consistent with this Construction Contract and that afford no greater rights of recovery  against Contractor than are afforded to Contractor against City under this Section.    Invitation for Bid (IFB) Package    19                  Rev. May 1, 2012  PART 3 – CONSTRUCTION CONTRACT C13146670    16.6 Contractor’s Duties Upon Termination.    Upon receipt of a notice of termination for default or for convenience, Contractor shall, unless the  notice directs otherwise, do the following:  (i) Immediately discontinue the Work to the extent specified in the notice;  (ii) Place no further orders or subcontracts for materials, equipment, services or facilities,  except as may be necessary for completion of such portion of the Work that is not  discontinued;  (iii) Provide to City a description, in writing no later than fifteen (15) days after receipt of the  notice of termination, of all subcontracts, purchase orders and contracts that are  outstanding, including, without limitation, the terms of the original price, any changes,  payments, balance owing, the status of the portion of the Work covered and a copy of  the subcontract, purchase order or contract and any written changes, amendments or  modifications thereto, together with such other information as City may determine  necessary in order to decide whether to accept assignment of or request Contractor to  terminate the subcontract, purchase order or contract;  (iv) Promptly assign to City those subcontracts, purchase orders or contracts, or portions  thereof, that City elects to accept by assignment and cancel, on the most favorable terms  reasonably possible, all subcontracts, purchase orders or contracts, or portions thereof,  that City does not elect to accept by assignment; and  (iii) Thereafter do only such Work as may be necessary to preserve and protect Work already  in progress and to protect materials, plants, and equipment on the Project Site or in  transit thereto.  SECTION 17 CONTRACTOR'S RIGHTS AND REMEDIES.    17.1 Contractor’s Remedies.    Contractor may terminate this Construction Contract only upon the occurrence of one of the  following:    17.1.1 For Work Stoppage.    The Work is stopped for sixty (60) consecutive Days, through no act or fault of Contractor, any  Subcontractor, or any employee or agent of Contractor or any Subcontractor, due to issuance of  an order of a court or other public authority other than City having jurisdiction or due to an act of  government, such as a declaration of a national emergency making material unavailable.  This  provision shall not apply to any work stoppage resulting from the City’s issuance of a suspension  notice issued either for cause or for convenience.    17.1.2 For City's Non‐Payment.    If City does not make pay Contractor undisputed sums within ninety (90) Days after receipt of  notice from Contractor, Contractor may terminate the Construction Contract (30) days following a  second notice to City of Contractor’s intention to terminate the Construction Contract.    17.2 Damages to Contractor.   In the event of termination for cause by Contractor, City shall pay Contractor the sums provided  for in Paragraph 16.5.1 above.  Contractor agrees to accept such sums as its sole and exclusive  compensation and agrees to waive any claim for other compensation or Losses, including, but not  limited to, loss of anticipated profits, loss of revenue, lost opportunity, or other consequential,  direct, indirect and incidental damages, of any kind.  SECTION 18 ACCOUNTING RECORDS.    18.1 Financial Management and City Access.    Contractor shall keep full and detailed accounts and exercise such controls as may be necessary  for proper financial management under this Construction Contract in accordance with generally  Invitation for Bid (IFB) Package    20                  Rev. May 1, 2012  PART 3 – CONSTRUCTION CONTRACT C13146670    accepted accounting principles and practices. City and City's accountants  during normal business  hours, may  inspect, audit and copy Contractor's records, books, estimates, take‐offs, cost reports,  ledgers, schedules, correspondence, instructions, drawings, receipts, subcontracts, purchase  orders, vouchers, memoranda and other data relating to this Project. Contractor shall retain these  documents for a period of three (3) years after the later of (i) final payment or (ii) final resolution  of all Contract Disputes and other disputes, or (iii) for such longer period as may be required by  law.    18.2 Compliance with City Requests.    Contractor's compliance with any request by City pursuant to this Section 18 shall be a condition  precedent to filing or maintenance of any legal action or proceeding by Contractor against City  and to Contractor's right to receive further payments under the Contract Documents.  City many  enforce Contractor’s obligation to provide access to City of its business and other records referred  to in Section 18.1 for inspection or copying by  issuance of a writ or a provisional or permanent  mandatory injunction by a court of competent jurisdiction based on affidavits submitted to such  court, without the necessity of oral testimony.    SECTION 19 INDEPENDENT PARTIES.    Each party is acting in its independent capacity and not as agents, employees, partners, or joint ventures’  of the other party.  City, its officers or employees shall have no control over the conduct of Contractor or  its respective agents, employees, subconsultants, or subcontractors, except as herein set forth.    SECTION 20 NUISANCE.    Contractor shall not maintain, commit, nor permit the maintenance or commission of any nuisance in  connection in the performance of services under this Construction Contract.    SECTION 21 PERMITS AND LICENSES.    Except as otherwise provided in the Special Provisions and Technical Specifications, The Contractor shall  provide, procure and pay for all licenses, permits, and fees, required by the City or other government  jurisdictions or agencies necessary to carry out and complete the Work.  Payment of all costs and expenses  for such licenses, permits, and fees shall be included in one or more Bid items. No other compensation  shall be paid to the Contractor for these items or for delays caused by non‐City inspectors or conditions set  forth in the licenses or permits issued by other agencies.    SECTION 22 WAIVER.    A waiver by either party of any breach of any term, covenant, or condition contained herein shall not be  deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition  contained herein, whether of the same or a different character.    SECTION 23 GOVERNING LAW.    This Construction Contract shall be construed in accordance with and governed by the laws of the State of  California.    Invitation for Bid (IFB) Package    21                  Rev. May 1, 2012  PART 3 – CONSTRUCTION CONTRACT C13146670    SECTION 24 COMPLETE AGREEMENT.    This Agreement represents the entire and integrated agreement between the parties and supersedes all  prior negotiations, representations, and contracts, either written or oral. This Agreement may be amended  only by a written instrument, which is signed by the parties.  SECTION 25 SURVIVAL OF CONTRACT.    The provisions of the Construction Contract which by their nature survive termination of the Construction  Contract or Final Completion, including, without limitation, all warranties, indemnities, payment  obligations, and City’s right to audit Contractor’s books and records, shall remain in full force and effect  after Final Completion or any termination of the Construction Contract.  SECTION 26 PREVAILING WAGES.          This Project is not subject to prevailing wages. The Contractor is not required to pay prevailing wages in  the performance and implementation of the Project, because the City, pursuant to its authority as a  chartered city, has adopted Resolution No. 5981 exempting the City from prevailing wages.  The City  invokes the exemption from the state prevailing wage requirement for this Project and declares that the  Project is funded one hundred percent (100%) by the City of Palo Alto.    Or     The Contractor is required to pay general prevailing wages as defined in Subchapter 3, Title 8 of the  California Code of Regulations and Section 16000 et seq. and Section 1773.1 of the California Labor Code.   Pursuant to the provisions of Section 1773 of the Labor Code of the State of California, the City Council has  obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work  in this locality for each craft, classification, or type of worker needed to execute the contract for this  Project from the Director of the Department of Industrial Relations.  Copies of these rates may be obtained  at cost at the Purchasing office of the City of Palo Alto.  Contractor shall provide a copy of prevailing wage  rates to any staff or subcontractor hired, and shall pay the adopted prevailing wage rates as a minimum.   Contractor shall comply with the provisions of Sections 1775, 1776, 1777.5, 1810, and 1813 of the Labor  Code.  SECTION 27 NON APPROPRIATION.    This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto  Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the  event that the City does not appropriate funds for the following fiscal year for this event, or (b) at any time  within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds  for this Construction Contract are no longer available.  This section shall take precedence in the event of a  conflict with any other covenant, term, condition, or provision of this Agreement.   SECTION 28 AUTHORITY.    The individuals executing this Agreement represent and warrant that they have the legal capacity and  authority to do so on behalf of their respective legal entities.  SECTION 29 ATTORNEY FEES.    Each Party shall bear its own costs, including attorney’s fees through the completion of mediation. If the  claim or dispute is not resolved through mediation and in any dispute described in Paragraph 14.2, the prevailing party in any action brought to enforce the provision of this Agreement may recover its  reasonable costs and attorney’s fees expended in connection with that action.  The prevailing party shall be  Invitation for Bid (IFB) Package    22                  Rev. May 1, 2012  PART 3 – CONSTRUCTION CONTRACT C13146670    entitled to recover an amount equal to the fair market value of legal services provided by attorneys  employed by it as well as any attorney’s’ fees paid to third parties.  SECTION 30 COUNTERPARTS  This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties,  constitute a single binding agreement.  SECTION 31 SEVERABILITY.    In case a provision of this Construction Contract is held to be invalid, illegal or unenforceable, the validity,  legality and enforceability of the remaining provisions shall not be affected.        IN WITNESS WHEREOF, the parties have caused this Construction Contract to be executed the   date and year first above written.             CITY OF PALO ALTO      ____________________________   Purchasing Manager   City Manager      APPROVED AS TO FORM:    ___________________________  Senior Asst. City Attorney    APPROVED:    ___________________________  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003-23-104 003-24-035 ARCADIA PLACE NEWELL ROAD NUE NEWELL RO AD NEWELL ROAD LOUISA COURT NEWELL PLACE WALTER HAYS DRIVE WALTER HAYS DRI VE WALNUT DRIVE OPKINS AVENUE NEWELL ROAD E M B A R CA D E R O RO A D W A LT E R H A Y S D R I VE WALTER HAYS DRIVE LOIS LANE LOIS LANE IR I S W PRIMROSE WAY L O I S L A N E STANLEY WAY JORDAN PLACE ERSTWIL D COURT R CA DE R O RO AD L HEATHER LANE IRIS WWALTER HAYS DRIVE CHANNING AVENUE ALESTER AVENUE DA NA AVENUE STANLEY WAY CHANNING AVENUE DE SOTO DRIVE DE SOTO DRIVE DE SOTO DRIVE KINGS LANE AN AVENUE NEWELL ROAD DANA AVENUE MADISON W ALESTER AVENUE P R IM R OS E WA YMMUNITY LANE AVENUE H A M I L T O N AVENUE J PATRI J A C K S O N DRIVE R HOD E S DRIVE WALN U T D R I V E WALNUT D R 1210 1210 12499 1430 1430 1420 1420 1410 1410 1259 1435 1435 1425 1425 1417 1417 1409 1409 1120 1120 14421442 1436 1436 1430 1430 1424 1424 1509 1509 1511 1511 11501150 1551 1551 1590 1590 1584 1584 1580 1580 1570 1570 1574 1574 1564 1564 1560 1560 1554 15541550 15501544 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product of the City of Palo Alto GIS This document is a graphic representation only of best available sources. 0' 331' CHANNING AVE:Newell Road toHeather LaneLocation MapN.T.S. CITY O F PALO A L TO I N C O R P O R ATE D C ALIFOR N IA P a l o A l t oT h e C i t y o f A P RIL 16 1894 The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2012 City of Palo Alto scarlet, 2012-07-12 11:48:14 (\\cc-maps\gis$\gis\admin\meta\view.mdb) 003-43-043 003-43-042 003-43-044 003-43-049 003-43-048 003-43-047 003-43-046 120-07-013 120-07-014 120-07-012 120-06-041 120-06-042 120-06-043 120-06-082 120-06-081 120-06-046 120-06-047 120-06-048 120-06-049 120-06-034 120-06-033 120-06-050 120-06-051 120-06-052 120-06-053 120-06-032 120-06-065 120-06-039 120-06-076 120-06-077 003-43-041 003-43-038 003-43-039 003-43-040 003-43-033 003-43-009 003-43-010 003-43-011 003-43-012 003-43-013 003-43-014 003-43-015 003-43-016 003-43-008 003-43-007 003-43-006 003-43-005 003-43-004 003-43-003 003-43-002 003-43-001 003-43-029 003-43-028 003-43-027 003-43-050 003-43-051 003-43-024 003-43-023 003-43-022 003-43-021 003-43-030 003-43-031 003-43-032 003-43-020 003-43-019 003-43-018 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CITY O F PALO A L TO I N C O R P O R ATE D C ALIFOR N IA P a l o A l t oT h e C i t y o f A P RIL 16 1894 The City of Palo Alto assumes no responsibility for any errors ©1989 to 2012 City of Palo Alto scarlet, 2012-07-12 11:26:48 (\\cc-maps\gis$\gis\admin\meta\view.mdb) Attachment C Ranking (Lowest Bidder to Highest Bidder)COMPANY BASE BID Engineer's Estimate City of Palo Alto $2,069,987.50 1 Valentine Corporation $1,947,368.50 2 Ranger Pipeline Inc.$2,121,518.00 3 Stoloski & Gonzalez Non-Responsive Bidder 4 Casey Construction $2,299,965.00 5 Con-Quest Contractors Inc. $2,332,625.00 Channing Avenue/Lincoln Avenue Storm Drain Improvement Project - Phase II Bid Summary - July 10, 2012 Project No.: SD-11101 City of Palo Alto (ID # 2972) City Council Staff Report Report Type: Consent Calendar Meeting Date: 7/23/2012 July 23, 2012 Page 1 of 4 (ID # 2972) Summary Title: Palo Alto 2012 Asphalt Paving Project Title: Approval of a Contract with O'Grady Paving, Inc. in the Amount of $2,135,714, for the 2012 Asphalt Paving Project, the 3rd of 6 Contracts in the 2012 Street Maintenance Program Project (CIP PE-86070) From:City Manager Lead Department: Public Works Recommendation Staff recommends that Council: 1.Approve and authorize the City Manager or his designee to execute the attached contract with O’Grady Paving, Inc.(Attachment A) in an amount not to exceed $2,135,714 for the Palo Alto 2012 Asphalt Paving Project Capital Improvement Project PE-86070; and 2.Authorize the City Manager or his designee to negotiate and execute one or more change orders to the contract with O’Grady Paving, Inc. for related, additional but unforeseen work which may develop during the project, the total value of which shall not exceed $213,571. Background The Public Works Engineering Division manages construction contracts for concrete repair, preventive maintenance, resurfacing and reconstruction of various city streets on an annual basis. The candidate streets are surveyed biannually by Public Works Engineering staff and then rated by a computerized pavement maintenance management system (PMMS). In 2011, the asphalt paving project repaved five (5) lane miles of Palo Alto Streets. The cost of the contract was approximately $2.2 million. July 23, 2012 Page 2 of 4 (ID # 2972) Since 2003, the Public Works Engineering Services Division has implemented multi-phased resurfacing projects; phase one for concrete repairs and preparation, phase two for preventive maintenance, and phase three for asphalt concrete resurfacing. This method of phasing has proved to be more cost effective by avoiding the typical 15% markup that prime contractors place on work that is performed by their subcontractors. This contract is for phase three, asphalt paving, and includes some concrete repair work on streets that are to be repaved. The contract is the third of six contracts for the calendar year 2012 streets program. All streets have been coordinated with the City’s Utilities Department and Transportation Division of Planning and Community Environment Department to minimize cutting newly resurfaced streets. Extensive public outreach will be conducted before and during construction phase to inform the community step by step throughout the process. Discussion Project Description Staff is recommending approval of the 3rd of 6 street resurfacing contracts to be approved this fiscal year as part of an enhanced program to increase the condition of Palo Alto’s streets. This project constitutes a $2,135,714 expenditure for 500,000 square feet of improvements as part of an effort to raise the Pavement Condition Index (a Statewide scoring system) from 74 to 80 by 2022. This project includes repaving six lane miles of streets (500,000 square feet)of new asphalt. Additionally, the project scope includes more than 28,000 square feet of concrete road base repair and 4,000 lineal feet of new curb and gutter. The list of streets being resurfaced in this project is included as Attachment C. Park Boulevard will be receiving surface treatments as well as green bike lanes as part of the new striping plan developed by the Transportation Division of Planning and Community Environment. This project also includes repaving Sand Hill Road from Arboretum Road to El Camino and continues with Alma Street from El Camino Real to Palo Alto Avenue. These roadways are scheduled for night work from 10 p.m.to 5 a.m.to minimize traffic impacts and will be coordinated with the residents and businesses before and during this construction phase. July 23, 2012 Page 3 of 4 (ID # 2972) Bid Process On June 19, 2012, a notice inviting formal bids (IFB) for the Palo Alto 2012 Asphalt Paving Project was posted at City Hall, and was sent to 3 builder’s exchanges and 9 contractors. The bidding period was 23 calendar days. Bids were received from 3 qualified contractors on July 12, 2012 as listed on the attached Bid Summary (Attachment B). Summary of Bid Process Bid Name/Number Palo Alto 2012 Asphalt Paving Project Proposed Length of Project 145 calendar days Number of Bid Packages Sent to Contractors 9 Number of Bid Packages Sent to Builder’s Exchanges 3 Total Days to Respond to Bid 23 Pre-Bid Meeting?No Number of Bids Received:3 Bid Price Range (base bid plus ??alternates)From a low of $2,130,714 to a high of $2,660,425 Bids ranged from a high of $2,660,425 to a low bid of $2,130,714 and ranged from 24 % above to .5 % below the engineer’s estimate of $2,142,529. Staff has reviewed all bids submitted and found that the bid totaling $2,130,714 submitted by O’Grady Paving, Inc. was the lowest and that O’Grady Paving, Inc. be declared the lowest responsible bidder. Staff recommends awarding the base bid plus add alternate # 4 for a contract total of $2,135,714. The change order amount of $213,571,which equals ten percent of the total contract, is requested for related, additional, but unforeseen work which may develop during the project. Staff reviewed other similar projects performed by the lowest responsible bidder, O’Grady Paving, Inc.including past paving projects performed for the City. There were no significant complaints with their previous work. Staff also checked with the Contractor's State License Board and found that the contractor has an active license on file. Resource Impact July 23, 2012 Page 4 of 4 (ID # 2972) Funding for the Palo Alto 2012 Asphalt Paving Project is available in Capital Improvement Program (CIP) Projects PE-86070 Street Resurfacing Program and CIP Project PL-04010 Bicycle & Pedestrian Transportation Plan-Implementation Project. Funding allocation breakdown for each of the CIP is as follows: Funding Source Contract Contingency Total Encumbrance 1 PE-86070 $ 2,130,714 $ 213,071 $ 2,343,785 2 PL-04010 $ 5,000 $ 500 $ 5,500 Totals $ 2,135,714 $ 213,571 $ 2,349,285 Policy Implications This project is in conformance with City of Palo Alto’s Comprehensive Plan and does not represent any changes to existing City policies. Environmental Review Street resurfacing projects are categorically exempt from the California Environmental Quality Act (CEQA) under Section 15301c of the CEQA Guidelines as repair, maintenance and/or minor alteration of the existing facilities and no further environmental review is necessary. Attachments: ·Attachment A_C13146757_OGrady_2012 Asphalt Paving_5.1.12 (PDF) ·Attachment B -Bid Summary (PDF) ·Attachment C -Street List(PDF) Prepared By:Matt Brunnings, Engineer Department Head:J. Michael Sartor, Director City Manager Approval: ____________________________________ James Keene, City Manager               CONSTRUCTION CONTRACT    Contract No. C13146757        City of Palo Alto    and    O’Grady Paving, Inc.      PROJECT  2012 ASPHALT PAVING   Invitation for Bid (IFB) Package 1                             Rev. May 1, 2012  PART 3 – CONSTRUCTION CONTRACT C13146757    Invitation for Bid (IFB) Package 2                             Rev. May 1, 2012  PART 3 – CONSTRUCTION CONTRACT C13146757       CONSTRUCTION CONTRACT             TABLE OF CONTENTS      SECTION 1. INCORPORATION OF RECITALS AND DEFINITIONS……………………………….. ....................5  1.1 Recitals ................................................................................................................ 5  1.2 Definitions ........................................................................................................... 5  SECTION 2. THE PROJECT………………………………………………………………………………..............................5  SECTION 3. THE CONTRACT DOCUMENTS…………………………………………………………. .........................6            3.1           List of Documents …………………………………………………………………………………………......6            3.2           Order of Precedence ……………………………………………………………………………................6  SECTION 4. THE WORK …………………………………………………………………………………..............................7  SECTION 5. PROJECT TEAM …………………………………………………………………………...............................7  SECTION 6. TIME OF COMPLETION …………………………………………………………………............................7  6.1 Time Is of Essence ........................................................................................……… 7  6.2 Commencement of Work..................................................................................... 7  6.3 Contract Time....................................................................................................... 7  6.4 Liquidated Damages............................................................................................. 7  6.4.1 Entitlement…………………………………………………………………………………………….   7 6.4.2 Daily Amount………………………………………………………………………………………….   8 6.4.3 Exclusive Remedy…………………………………………………………………………………..   8 6.4.4 Other Remedies…………………………………………………………………………………...     8 6.5 Adjustments to Contract Time........................................................................... … 8  SECTION 7. COMPENSATION TO CONTRACTOR………………………………………………………………………...  8  7.1 Contract Sum ………………………………………………………………………………………………………8  7.2 Full Compensation …………………………………………………………………………………………….. 9  7.3 Compensation for Extra or Deleted Work …………………………………………………………….9  7.3.1 Self Performed Work…………………………………………………………………………………9 7.3.2 Subcontractors………………………………………………………………………………………….9 SECTION 8. STANDARD OF CARE...................................................................................................9  SECTION 9. INDEMNIFICATION......................................................................................................10  9.1 Hold Harmless ……………………………………………………………………………………………………..10  9.2 Survival ……………………………………………………………………………………………………………….10  SECTION 10. NONDISCRIMINATION ..............................................................................................10  SECTION 11. INSURANCE AND BONDS ..........................................................................................10    Invitation for Bid (IFB) Package 3                             Rev. May 1, 2012  PART 3 – CONSTRUCTION CONTRACT C13146757  SECTION 12. PROHIBITION AGAINST TRANSFERS..........................................................................11  SECTION 13. NOTICES....................................................................................................................11  13.1 Method of Notice ………………………………………………………………………………………………..11  13.2 Notice Recipients .................................................................................................  11  13.3 Change of Address ............................................................................................... 12  14.1 Resolution of Contract Disputes........................................................................... 12  14.2 Resolution of Other Disputes ............................................................................... 12  14.2.1 Non‐Contract Disputes …………………………………………………………………………………….12  14.2.2 Litigation, City Election …………………………………………………………...........................13  14.3 Submission of Contract Dispute …………………………………………………………………………..13  14.3.1 By Contractor …………………………………………………………………………………………. 13  14.3.2 By City ……………………………………………………………………………………………………. 13  14.4 Contract Dispute Resolution Process...............................................................…… 13  14.4.1 Direct Negotiation…………………………………………………………………………………….13  14.4.2 Deferral of Contract Disputes …………………………………………………………………   14  14.4.3 Mediation …………………………………………………………………………..14 14.4.4 Binding Arbitration ………………………………………………………………..15 14.5 Non‐Waiver …………………………………………………………………………………………………………16  SECTION 15. DEFAULT...................................................................................................................16  15.1 Notice of Default.................................................................................................. 16  15.2 Opportunity to Cure Default ................................................................................ 16  SECTION 16. CITY'S RIGHTS AND REMEDIES..................................................................................16  16.1 Remedies Upon Default ....................................................................................... 16  16.1.1 Delete Certain Services …………………………………………………………...........................16 16.1.2 Perform and Withhold ……………………………………………………………………………. 16  16.1.3 Suspend The Construction Contract ………………………………………………………….16  16.1.4 Terminate the Construction Contract for Default ……………………………………..17  16.1.5 Invoke the Performance Bond ………………………………………………………………….17  16.1.6 Additional Provisions ……………………………………………………………………………….17  16.2 Delays by Sureties................................................................................................ 17  16.3 Damages to City................................................................................................... 17  16.3.1 For Contractor's Default …………………………………………………………………………..17  16.3.2 Compensation for Losses ………………………………………………………………………….17 16.5 Suspension by City for Convenience..................................................................... 18  16.6 Termination Without Cause ................................................................................. 18  16.6.1 Compensation ………………………………………………………………………………………….18 16.6.2 Subcontractors …………………………………………………………………………………………18 16.7 Contractor’s Duties Upon Termination................................................................. 19    Invitation for Bid (IFB) Package 4                             Rev. May 1, 2012  PART 3 – CONSTRUCTION CONTRACT C13146757  SECTION 17. CONTRACTOR'S RIGHTS AND REMEDIES...................................................................19  17.1 Contractor’s Remedies......................................................................................... 19  17.1.1 For Work Stoppage …………………………………………………………………………………..19 17.1.2 For City's Non‐Payment …………………………………………………………………………… 19  17.2 Damages to Contractor ........................................................................................ 19  SECTION 18. ACCOUNTING RECORDS............................................................................................19  18.1 Financial Management and City Access..........................................................……. 19  18.2 Compliance with City Requests ........................................................................ …. 20  SECTION 19. INDEPENDENT PARTIES.............................................................................................20  SECTION 20. NUISANCE.................................................................................................................20  SECTION 21. PERMITS AND LICENSES............................................................................................20  SECTION 22. WAIVER....................................................................................................................20  SECTION 23. GOVERNING LAW .....................................................................................................20  SECTION 24. COMPLETE AGREEMENT ...........................................................................................21  SECTION 25. SURVIVAL OF CONTRACT..........................................................................................21  SECTION 26. PREVAILING WAGES..................................................................................................21  SECTION 27. NON APPROPRIATION ..............................................................................................21  SECTION 28. GOVERNMENTAL POWERS........................................................................................21  SECTION 29. ATTORNEY FEES........................................................................................................21  SECTION 30. COUNTERPARTS........................................................................................................22  SECTION 31. SEVERABILITY ...........................................................................................................22      Invitation for Bid (IFB) Package    5                  Rev. May 1, 2012  PART 3 – CONSTRUCTION CONTRACT C13146757    CONSTRUCTION CONTRACT    THIS CONSTRUCTION CONTRACT entered into on the 1st day of August, 2012 (“Execution Date”) by and  between the CITY OF PALO ALTO, a California chartered municipal corporation ("City"), and O’GRADY  PAVING, INC. ("Contractor"), is made with reference to the following:    R E C I T A L S:    A. City is a municipal corporation duly organized and validly existing under the laws of the State of  California with the power to carry on its business as it is now being conducted under the statutes of the  State of California and the Charter of City.    B. Contractor is a corporation duly organized and in good standing in the State of California,  Contractor’s License Number 201696. Contractor represents that it is duly licensed by the State of  California and has the background, knowledge, experience and expertise to perform the obligations set  forth in this Construction Contract.    C. On June 19, 2012, City issued an Invitation for Bids (IFB) to contractors for the 2012 Asphalt Paving  Project, which includes, but is not limited to, tree trimming; traffic control; crack sealing; placing asphalt  concrete overlay; asphalt concrete pavement repair and replacement; asphalt concrete milling; Portland  cement concrete demolition, pavement repair, and replacement; placement and compaction of sufficient  aggregate base; remove and repairing sidewalk, curb, gutter and driveway; installing or replacing curb  ramps; removal and replacement of concrete median curbs; installing truncated domes; replace storm  drainage inlets and pipes; potholing; grading; surveying; landscape strip area repair replacement between  back of curb and sidewalk, if disturbed, including irrigation and brickwork; striping; placing legends and  pavement markers; site preparation; adjusting manholes, catch basins, utility boxes, vaults and  monuments to grade and installing monuments (“Project”).  In response to the IFB, Contractor submitted a  bid.    D. City and Contractor desire to enter into this Construction Contract for the Project, and other  services as identified in the Bid Documents for the Project upon the following terms and conditions.    NOW THEREFORE, in consideration of the mutual promises and undertakings hereinafter set forth  and for other good and valuable consideration, the receipt and sufficiency of which are hereby  acknowledged, it is mutually agreed by and between the undersigned parties as follows:    SECTION 1 INCORPORATION OF RECITALS AND DEFINITIONS.    1.1 Recitals.    All of the recitals are incorporated herein by reference.    1.2 Definitions.    Capitalized terms shall have the meanings set forth in this Construction Contract and/or in the  General Conditions.  If there is a conflict between the definitions in this Construction Contract and  in the General Conditions, the definitions in this Construction Contract shall prevail.  SECTION 2 THE PROJECT.    The Project is the construction of the 2012 ASPHALT PAVING ("Project").    Invitation for Bid (IFB) Package    6                  Rev. May 1, 2012  PART 3 – CONSTRUCTION CONTRACT C13146757    SECTION 3 THE CONTRACT DOCUMENTS.    3.1  List of Documents.  The Contract Documents (sometimes collectively referred to as “Agreement” or “Bid Documents”) consist  of the following documents which are on file with the Purchasing Division and are hereby incorporated by  reference.       1) Change Orders    2) Field Change Orders    3) Contract    4) Project Plans and Drawings  5) Technical Specifications  6) Special Provisions  7)    Notice Inviting Bids  8)    Instructions to Bidders  9)    General Conditions  10) Bidding Addenda    11) Invitation for Bids    12) Contractor's Bid/Non‐Collusion Affidavit    13)   Reports listed in the Bidding Documents    14)   Public Works Department’s Standard Drawings and Specifications dated 2007 and                updated from time to time    15) Utilities Department’s Water, Gas, Wastewater, Electric Utilities Standards dated 2005  and updated from time to time    16)  City of Palo Alto Traffic Control Requirements    17)  City of Palo Alto Truck Route Map and Regulations    18)  Notice Inviting Pre‐Qualification Statements, Pre‐Qualification Statement, and Pre‐  Qualification Checklist (if applicable)    19)  Performance and Payment Bonds    20)  Insurance Forms      3.2  Order of Precedence.    Invitation for Bid (IFB) Package    7                  Rev. May 1, 2012  PART 3 – CONSTRUCTION CONTRACT C13146757    For the purposes of construing, interpreting and resolving inconsistencies between and among the  provisions of this Contract, the Contract Documents shall have the order of precedence as set forth in the  preceding section.  If a claimed inconsistency cannot be resolved through the order of precedence, the City  shall have the sole power to decide which document or provision shall govern as may be in the best  interests of the City.  SECTION 4 THE WORK.    The Work includes all labor, materials, equipment, services, permits, fees, licenses and taxes, and all other  things necessary for Contractor to perform its obligations and complete the Project, including, without  limitation, any Changes approved by City, in accordance with the Contract Documents and all Applicable  Code Requirements.    SECTION 5 PROJECT TEAM.    In addition to Contractor, City has retained, or may retain, consultants and contractors to provide  professional and technical consultation for the design and construction of the Project.  The Project requires  that Contractor operate efficiently, effectively and cooperatively with City as well as all other members of  the Project Team and other contractors retained by City to construct other portions of the Project.    SECTION 6 TIME OF COMPLETION.  6.1 Time Is of Essence.    Time is of the essence with respect to all time limits set forth in the Contract Documents.    6.2 Commencement of Work.    Contractor shall commence the Work on the date specified in City’s Notice to Proceed.       6.3 Contract Time.    Work hereunder shall begin on the date specified on the City’s Notice to Proceed and shall be  completed    not later than  .   within one hundred forty‐five calendar days (145) after the commencement date  specified in City’s  Notice to Proceed.    6.4 Liquidated Damages.    6.4.1 Entitlement.    City and Contractor acknowledge and agree that if Contractor fails to fully and  satisfactorily complete the Work within the Contract Time, City will suffer, as a result of  Contractor’s failure, substantial damages which are both extremely difficult and  impracticable to ascertain.  Such damages may include, but are not limited to:  (i) Loss of public confidence in City and its contractors and consultants.  (ii) Loss of public use of public facilities.  (iii) Extended disruption to public.    Invitation for Bid (IFB) Package    8                  Rev. May 1, 2012  PART 3 – CONSTRUCTION CONTRACT C13146757    6.4.2 Daily Amount.    City and Contractor have reasonably endeavored, but failed, to ascertain the actual  damage that City will incur if Contractor fails to achieve Substantial Completion of the  entire Work within the Contract Time.  Therefore, the parties agree that in addition to all  other damages to which City may be entitled other than delay damages, in the event  Contractor shall fail to achieve Substantial Completion of the entire Work within the  Contract Time, Contractor shall pay City as liquidated damages the amount of $500 per  day for each Day occurring after the expiration of the Contract Time until Contractor  achieves Substantial Completion of the entire Work.  The liquidated damages amount is  not a penalty but considered to be a reasonable estimate of the amount of damages City  will suffer by delay in completion of the Work.    6.4.3 Exclusive Remedy.    City and Contractor acknowledge and agree that this liquidated damages provision shall  be City’s only remedy for delay damages caused by Contractor’s failure to achieve  Substantial Completion of the entire Work within the Contract Time.    6.4.4 Other Remedies.    City is entitled to any and all available legal and equitable remedies City may have where  City’s Losses are caused by any reason other than Contractor’s failure to achieve  Substantial Completion of the entire Work within the Contract Time.    6.5 Adjustments to Contract Time.    The Contract Time may only be adjusted for time extensions approved by City and agreed to by  Change Order executed by City and Contractor in accordance with the requirements of the  Contract Documents.  SECTION 7 COMPENSATION TO CONTRACTOR.    7.1 Contract Sum.    Contractor shall be compensated for satisfactory completion of the Work in compliance with the  Contract Documents the Contract Sum of Two Million One Hundred Thirty‐five Thousand Seven  Hundred Forteen Dollars and Two Cents ($2,135,714.02).         [This amount includes the Base Bid $2,130,714.02 and Add Alternate #4  $5000.00.]    Invitation for Bid (IFB) Package    9                  Rev. May 1, 2012  PART 3 – CONSTRUCTION CONTRACT C13146757    7.2 Full Compensation.    The Contract Sum shall be full compensation to Contractor for all Work provided by Contractor  and, except as otherwise expressly permitted by the terms of the Contract Documents, shall cover  all Losses arising out of the nature of the Work or from the acts of the elements or any unforeseen  difficulties or obstructions which may arise or be encountered in performance of the Work until  its Acceptance by City, all risks connected with the Work, and any and all expenses incurred due to  suspension or discontinuance of the Work.  The Contract Sum may only be adjusted for Change  Orders issued, executed and satisfactorily performed in accordance with the requirements of the  Contract Documents.    7.3 Compensation for Extra or Deleted Work.    The Contract Sum shall be adjusted (either by addition or credit) for Changes in the Work involving  Extra Work or Deleted Work based on one or more of the following methods to be selected by  City:  1. Unit prices stated in the Contract Documents or agreed upon by City and Contractor,   which unit prices shall be deemed to include Contractor Markup and   Subcontractor/Sub‐subcontractor Markups permitted by this Section.    2. A lump sum agreed upon by City and Contractor, based on the estimated Allowable   Costs and Contractor Markup and Subcontractor Markup computed in accordance   with this Section.    3. Contractor’s Allowable Costs, plus Contractor Markup and Subcontractor Markups   applicable to such Extra Work computed in accordance with this Section.    Contractor Markup and Subcontractor/Sub‐subcontractor Markups set forth herein are the full  amount of compensation to be added for Extra Work or to be subtracted for Deleted Work that is  attributable to overhead (direct and indirect) and profit of Contractor and of its Subcontractors  and Sub‐subcontractors, of every Tier.  When using this payment methodology, Contractor  Markup and Subcontractor/Sub‐subcontractor Markups, which shall not be compounded, shall be  computed as follows:    7.3.1 Markup Self‐Performed Work.    10% of the Allowable Costs for that portion of the Extra Work or Deleted Work to be  performed by Contractor with its own forces.    7.3.2 Markup for Work Performed by Subcontractors.    15% of the Allowable Costs for that portion of the Extra Work or Deleted Work to be  performed by a first Tier Subcontractor.        SECTION 8 STANDARD OF CARE.    Contractor agrees that the Work shall be performed by qualified, experienced and well‐supervised  personnel.  All services performed in connection with this Construction Contract shall be performed in a  manner consistent with the standard of care under California law applicable to those who specialize in  providing such services for projects of the type, scope and complexity of the Project.     Invitation for Bid (IFB) Package    10                  Rev. May 1, 2012  PART 3 – CONSTRUCTION CONTRACT C13146757    SECTION 9 INDEMNIFICATION.    9.1 Hold Harmless.    To the fullest extent allowed by law, Contractor will defend, indemnify, and hold harmless City, its  City Council, boards and commissions, officers, agents, employees, representatives and volunteers  (hereinafter collectively referred to as "Indemnitees"), through legal counsel acceptable to City,  from and against any and all Losses arising directly or indirectly from, or in any manner relating to  any of, the following:  (i) Performance or nonperformance of the Work by Contractor or its Subcontractors or Sub‐ subcontractors, of any tier;  (ii) Performance or nonperformance by Contractor or its Subcontractors or Sub‐ subcontractors of any tier, of any of the obligations under the Contract Documents;  (iii) The construction activities of Contractor or its Subcontractors or Sub‐subcontractors, of  any tier, either on the Site or on other properties;  (iv) The payment or nonpayment by Contractor to any of its employees, Subcontractors or  Sub‐subcontractors of any tier, for Work performed on or off the Site for the Project; and  (v) Any personal injury, property damage or economic loss to third persons associated with  the performance or nonperformance by Contractor or its Subcontractors or Sub‐ subcontractors of any tier, of the Work.    However, nothing herein shall obligate Contractor to indemnify any Indemnitee for Losses  resulting from the sole or active negligence or willful misconduct of the Indemnitee.  Contractor  shall pay City for any costs City incurs to enforce this provision.  Nothing in the Contract  Documents shall be construed to give rise to any implied right of indemnity in favor of Contractor  against City or any other Indemnitee.    9.2 Survival.    The provisions of Section 9 shall survive the termination of this Construction Contract.    SECTION 10 NONDISCRIMINATION.    As set forth in Palo Alto Municipal Code section 2.30.510, Contractor certifies that in the performance of  this Agreement, it shall not discriminate in the employment of any person because of the race, skin color,  gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status,  familial status, weight or height of such person. Contractor acknowledges that it has read and understands  the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination  Requirements and the penalties for violation thereof, and will comply with all requirements of Section  2.30.510 pertaining to nondiscrimination in employment.    SECTION 11 INSURANCE AND BONDS.    On or before the Execution Date, Contractor shall provide City with evidence that it has obtained insurance  and Performance and Payment Bonds satisfying all requirements in Article 11 of the General Conditions.   Failure to do so shall be deemed a material breach of this Construction Contract.    Invitation for Bid (IFB) Package    11                  Rev. May 1, 2012  PART 3 – CONSTRUCTION CONTRACT C13146757    SECTION 12 PROHIBITION AGAINST TRANSFERS.    City is entering into this Construction Contract based upon the stated experience and qualifications of the  Contractor and its subcontractors set forth in Contractor’s Bid.  Accordingly, Contractor shall not assign,  hypothecate or transfer this Construction Contract or any interest therein directly or indirectly, by  operation of law or otherwise without the prior written consent of City. Any assignment, hypothecation or  transfer without said consent shall be null and void.    The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of  Contractor or of any general partner or joint venturer or syndicate member of Contractor, if the Contractor  is a partnership or joint venture or syndicate or co‐tenancy shall result in changing the control of  Contractor, shall be construed as an assignment of this Construction Contract. Control means more than  fifty percent (50%) of the voting power of the corporation or other entity.     SECTION 13 NOTICES.    13.1 Method of Notice.    All notices, demands, requests or approvals to be given under this Construction Contract shall be given in  writing and shall be deemed served on the earlier of the following:  (i) On the date delivered if delivered personally;  (ii) On the third business day after the deposit thereof in the United States mail, postage prepaid, and   addressed as hereinafter provided;   (iii) On the date sent if sent by facsimile transmission;   (iv) On the date sent if delivered by electronic mail; or   (v) On the date it is accepted or rejected if sent by certified mail.     13.2 Notice Recipients.    All notices, demands or requests (including, without limitation, Claims) from Contractor to City   shall include the Project name and the number of this Construction Contract and shall be   addressed to City at:      To City:  City of Palo Alto     City Clerk     250 Hamilton Avenue     P.O. Box 10250     Palo Alto, CA 94303     Copy to:  City of Palo Alto     Public Works Administration     250 Hamilton Avenue     Palo Alto, CA 94301     Attn: Elizabeth Ames        Or     City of Palo Alto     Utilities Engineering     250 Hamilton Avenue     Palo Alto, CA 94301     Attn:      Invitation for Bid (IFB) Package    12                  Rev. May 1, 2012  PART 3 – CONSTRUCTION CONTRACT C13146757       In addition, copies of all Claims by Contractor under this Construction Contract shall be provided  to the following:    Palo Alto City Attorney’s Office  250 Hamilton Avenue  P.O. Box 10250  Palo Alto, California 94303       All Claims shall be delivered personally or sent by certified mail.    All notices, demands, requests or approvals from City to Contractor shall be addressed to:    O’Grady Paving, Inc.  2513 Wyandotte Street  Mountain View, CA 94043  Attn: Craig E. Young      13.3 Change of Address.    In the event of any change of address, the moving party shall notify the other party of the change  of address in writing.  Each party may, by written notice only, add, delete or replace any  individuals to whom and addresses to which notice shall be provided.    SECTION 14 DISPUTE RESOLUTION.     14.1 Resolution of Contract Disputes.     Contract Disputes shall be resolved by the parties in accordance with the provisions of this   Section 14, in lieu of any and all rights under the law that either party have its rights  adjudged  by a trial court or jury.  All Contract Disputes shall be subject to the Contract  Dispute Resolution Process  set forth in this Section 14, which shall be the exclusive  recourse of Contractor and City for such  Contract Disputes.    14.2 Resolution of Other Disputes.     14.2.1 Non‐Contract Disputes.    Contract Disputes shall not include any of the following:  (i) Penalties or forfeitures prescribed by statute or regulation imposed by a  governmental agency;  (ii) Third party tort claims for personal injury, property damage or death relating to  any Work performed by Contractor or its Subcontractors or Sub‐subcontractors  of any tier;  (iii) False claims liability under California Government Code Section 12650, et. seq.;  (iv) Defects in the Work first discovered by City after Final Payment by City to  Contractor;  (v) Stop notices; or  (vi) The right of City to specific performance or injunctive relief to compel  performance of any provision of the Contract Documents.    Invitation for Bid (IFB) Package    13                  Rev. May 1, 2012  PART 3 – CONSTRUCTION CONTRACT C13146757    14.2.2 Litigation, City Election.    Matters that do not constitute Contract Disputes shall be resolved by way of an action  filed in the Superior Court of the State of California, County of Santa Clara, and shall not  be subject to the Contract Dispute Resolution Process. However, the City reserves the  right, in its sole and absolute discretion, to treat such disputes as Contract Disputes.  Upon written notice by City of its election as provided in the preceding sentence, such  dispute shall be submitted by the parties and finally decided pursuant to the Contract  Dispute Resolution Process in the manner as required for Contract Disputes, including,  without limitation, City’s right under Paragraph 14.4.2 to defer resolution and final  determination until after Final Completion of the Work.    14.3 Submission of Contract Dispute.    14.3.1 By Contractor.    Contractors may commence the Contract Dispute Resolution Process upon City's written  response denying all or part of a Claim pursuant to Paragraph 4.2.9 or 4.2.10 of the  General Conditions.  Contractor shall submit a written Statement of Contract Dispute (as  set forth below) to City within seven (7) Days after City rejects all or a portion of  Contractor's Claim.  Failure by Contractor to submit its Statement of Contract Dispute in a  timely manner shall result in City’s decision by City on the Claim becoming final and  binding.  Contractor’s Statement of Contract Dispute shall be signed under penalty of  perjury and shall state with specificity the events or circumstances giving rise to the  Contract Dispute, the dates of their occurrence and the asserted effect on the Contract  Sum and the Contract Time.  The Statement of Contract Dispute shall include adequate  supporting data to substantiate the disputed Claim.  Adequate supporting data for a  Contract Dispute relating to an adjustment of the Contract Time shall include both of the  following:  (i) All of the scheduling data required to be submitted by Contractor under the  Contract Documents to obtain extensions of time and adjustments to the  Contract Time and  (ii) A detailed, event‐by‐event description of the impact of each event on  completion of Work.  Adequate data to support a Statement of Contract Dispute  involving an adjustment of the Contract Sum must include both of the following:   (a) A detailed cost breakdown and   (b) Supporting cost data in such form and including such information and   other supporting data as required under the Contract Documents for   submission of Change Order Requests and Claims.  14.3.2 By City.    City's right to commence the Contract Dispute Resolution Process shall arise at any time  following City's actual discovery of the circumstances giving rise to the Contract Dispute.   City asserts Contract Disputes in response to a Contract Dispute asserted by Contractor.   A Statement of Contract Dispute submitted by City shall state the events or  circumstances giving rise to the Contract Dispute, the dates of their occurrence and the  damages or other relief claimed by City as a result of such events.    14.4 Contract Dispute Resolution Process.    The parties shall utilize each of the following steps in the Contract Dispute Resolution  Process in the sequence they appear below.  Each party shall participate fully and in good  faith in each step in the Contract Dispute Resolution Process, and good faith effort shall  be a condition precedent to the right of each party to proceed to the next step in the  process.    14.4.1 Direct Negotiations.    Designated representatives of City and Contractor shall meet as soon as possible (but not  later than ten (10) Days after receipt of the Statement of Contract Dispute) in a good  Invitation for Bid (IFB) Package    14                  Rev. May 1, 2012  PART 3 – CONSTRUCTION CONTRACT C13146757    faith effort to negotiate a resolution to the Contract Dispute.  Each party shall be  represented in such negotiations by an authorized representative with full knowledge of  the details of the Claims or defenses being asserted by such party in the negotiations,  and with full authority to resolve such Contract Dispute then and there, subject only to  City’s obligation to obtain administrative and/or City Council approval of any agreed  settlement or resolution.  If the Contract Dispute involves the assertion of a right or claim  by a Subcontractor or Sub‐subcontractor, of any tier, against Contractor that is in turn  being asserted by Contractor against City (“Pass‐Through Claim”), then the Subcontractor  or Sub‐Subcontractor shall also have a  representative attend the negotiations, with the same authority and knowledge as  described above.  Upon completion of the meeting, if the Contract Dispute is not  resolved, the parties may either continue the negotiations or any party may declare  negotiations ended.  All discussions that occur during such negotiations and all  documents prepared solely for the purpose of such negotiations shall be confidential and  privileged pursuant to California Evidence Code Sections 1119 and 1152.    14.4.2 Deferral of Contract Disputes.    Following the completion of the negotiations required by Paragraph 14.4.1, all  unresolved Contract Disputes shall be deferred pending Final Completion of the Project,  subject to City’s right, in its sole and absolute discretion, to require that the Contract  Dispute Resolution Process proceed prior to Final Completion.  All Contract Disputes that  have been deferred until Final Completion shall be consolidated within a reasonable time  after Final Completion and thereafter pursued to resolution pursuant to this Contract  Dispute Resolution Process. The parties can continue informal negotiations of Contract  Disputes; provided, however, that such informal negotiations shall not be alter the  provisions of the Agreement deferring final determination and resolution of unresolved  Contract Disputes until after Final Completion.    14.4.3 Mediation.    If the Contract Dispute remains unresolved after negotiations pursuant to Paragraph  14.4.1, the parties shall submit the Contract Dispute to non‐binding mediation before a  mutually acceptable third party mediator.    .1 Qualifications of Mediator.  The parties shall endeavor to select a mediator who  is a retired judge or an attorney with at least five (5) years of experience in  public works construction contract law and in mediating public works  construction disputes.  In addition, the mediator shall have at least twenty (20)  hours of formal training in mediation skills.    .2 Submission to Mediation and Selection of Mediator.  The party initiating  mediation of a Contract Dispute shall provide written notice to the other party  of its decision to mediate.  In the event the parties are unable to agree upon a  mediator within fifteen (15) Days after the receipt of such written notice, then  the parties shall submit the matter to the American Arbitration Association  (AAA) at its San Francisco Regional Office for selection of a mediator in  accordance with the AAA Construction Industry Mediation Rules.    .3 Mediation Process.  The location of the mediation shall be at the offices of City.   The costs of mediation shall be shared equally by both parties.  The mediator  shall provide an independent assessment on the merits of the Contract Dispute  and recommendations for resolution.  All discussions that occur during the  mediation and all documents prepared solely for the purpose of the mediation  shall be confidential and privileged pursuant to California Evidence Code  Sections 1119 and 1152.    Invitation for Bid (IFB) Package    15                  Rev. May 1, 2012  PART 3 – CONSTRUCTION CONTRACT C13146757    14.4.4 Binding Arbitration.    If the Contract Dispute is not resolved by mediation, then any party may submit the  Contract Dispute for final and binding arbitration pursuant to the provisions of California  Public Contract Code Sections 10240, et seq.  The award of the arbitrator therein shall be  final and may be entered as a judgment by any court of competent jurisdiction.  Such  arbitration shall be conducted in accordance with the following:    .1 Arbitration Initiation.  The arbitration shall be initiated by filing a complaint in  arbitration in accordance with the regulations promulgated pursuant to  California Public Contract Code Section 10240.5.    .2 Qualifications of the Arbitrator.  The arbitrator shall be approved by all parties.  The arbitrator shall be a retired judge or an attorney with at least five (5) years  of experience in public works construction contract law and in arbitrating public  works construction disputes.  In addition, the arbitrator shall have at least  twenty (20) hours of formal training in arbitration skills.  In the event the parties  cannot agree upon an arbitrator, the provisions of California Public Contract  Code Section 10240.3 shall be followed in selecting an arbitrator possessing the  qualifications required herein.    .3 Hearing Days and Location.  Arbitration hearings shall be held at the offices of  City and shall, except for good cause shown to and determined by the arbitrator,  be conducted on consecutive business days, without interruption or  continuance.    .4 Hearing Delays.  Arbitration hearings shall not be delayed except upon good  cause shown.    .5 Recording Hearings.  All hearings to receive evidence shall be recorded by a  certified stenographic reporter, with the costs thereof borne equally by City and  Contractor and allocated by the arbitrator in the final award.    .6 Limitation of Depositions.  The parties may conduct discovery in accordance  with the provisions of section 10240.11 of the Public Contract Code; provided,  however, that depositions shall be limited to both of the following:    (i) Ten (10) percipient witnesses for each party and 5 expert witnesses per  party.      Upon a showing of good cause, the arbitrator may increase the number of  permitted depositions.  An individual who is both percipient and expert shall, for  purposes of applying the foregoing numerical limitation only, be deemed an  expert.  Expert reports shall be exchanged prior to receipt of evidence, in  accordance with the direction of the arbitrator, and expert reports (including  initial and rebuttal reports) not so submitted shall not be admissible as  evidence.    .7 Authority of the Arbitrator.  The arbitrator shall have the authority to hear  dispositive motions and issue interim orders and interim or executory awards.    Invitation for Bid (IFB) Package    16                  Rev. May 1, 2012  PART 3 – CONSTRUCTION CONTRACT C13146757    .8 Waiver of Jury Trial.  Contractor and City each voluntarily waives its right to a  jury trial with respect to any Contract Dispute that is subject to binding  arbitration in accordance with the provisions of this Paragraph 14.4.4.   Contractor shall include this provision in its contracts with its Subcontractors  who provide any portion of the Work.    14.5 Non‐Waiver.    Participation in the Contract Dispute Resolution Process shall not waive, release or compromise  any defense of City, including, without limitation, any defense based on the assertion that the  rights or Claims of Contractor that are the basis of a Contract Dispute were previously waived by  Contractor due to Contractor’s failure to comply with the Contract Documents, including, without  limitation, Contractor’s failure to comply with any time periods for providing notice of requests  for adjustments of the Contract Sum or Contract Time or for submission of Claims or supporting  documentation of Claims.    SECTION 15 DEFAULT.    15.1 Notice of Default.    In the event that City determines, in its sole discretion, that Contractor has failed or refused to  perform any of the obligations set forth in the Contract Documents, or is in breach of any  provision of the Contract Documents, City may give written notice of default to Contractor in the  manner specified for the giving of notices in the Construction Contract.    15.2 Opportunity to Cure Default.  Except for emergencies, Contractor shall cure any default in performance of its obligations under  the Contract Documents within two (2) Days (or such shorter time as City may reasonably require)  after receipt of written notice.  However, if the breach cannot be reasonably cured within such  time, Contractor will commence to cure the breach within two (2) Days (or such shorter time as  City may reasonably require) and will diligently and continuously prosecute such cure to  completion within a reasonable time, which shall in no event be later than ten (10) Days after  receipt of such written notice.    SECTION 16 CITY'S RIGHTS AND REMEDIES.    16.1 Remedies Upon Default.    If Contractor fails to cure any default of this Construction Contract within the time period set forth  above in Section 15, then City may pursue any remedies available under law or equity, including,  without limitation, the following:    16.1.1 Delete Certain Services.    City may, without terminating the Construction Contract, delete certain portions of the  Work, reserving to itself all rights to Losses related thereto.    16.1.2 Perform and Withhold.     City may, without terminating the Construction Contract, engage others to perform the  Work or portion of the Work that has not been adequately performed by Contractor and  withhold the cost thereof to City from future payments to Contractor, reserving to itself  all rights to Losses related thereto.    16.1.3 Suspend The Construction Contract.     City may, without terminating the Construction Contract and reserving to itself all rights  to Losses related thereto, suspend all or any portion of this Construction Contract for as  Invitation for Bid (IFB) Package    17                  Rev. May 1, 2012  PART 3 – CONSTRUCTION CONTRACT C13146757    long a period of time as City determines, in its sole discretion, appropriate, in which  event City shall have no obligation to adjust the Contract Sum or Contract Time, and shall  have no liability to Contractor for damages if City directs Contractor to resume Work.    16.1.4 Terminate the Construction Contract for Default.    City shall have the right to terminate this Construction Contract, in whole or in part, upon  the failure of Contractor to promptly cure any default as required by Section 15.  City’s  election to terminate the Construction Contract for default shall be communicated by  giving Contractor a written notice of termination in the manner specified for the giving of  notices in the Construction Contract.  Any notice of termination given to Contractor by  City shall be effective immediately, unless otherwise provided therein.    16.1.5 Invoke the Performance Bond.    City may, with or without terminating the Construction Contract and reserving to itself all  rights to Losses related thereto, exercise its rights under the Performance Bond.    16.1.6 Additional Provisions.    All of City’s rights and remedies under this Construction Contract are cumulative, and  shall be in addition to those rights and remedies available in law or in equity.   Designation in the Contract Documents of certain breaches as material shall not waive  the City’s authority to designate other breaches as material nor limit City’s right to  terminate the Construction Contract, or prevent the City from terminating the  Agreement for breaches that are not material.  City’s determination of whether there has  been noncompliance with the Construction Contract so as to warrant exercise by City of  its rights and remedies for default under the Construction Contract, shall be binding on  all parties.  No termination or action taken by City after such termination shall prejudice  any other rights or remedies of City provided by law or equity or by the Contract  Documents upon such termination; and City may proceed against Contractor to recover  all liquidated damages and Losses suffered by City.    16.2 Delays by Sureties.    Without limiting to any of City’s other rights or remedies, City has the right to suspend the  performance of the Work by Contractor’s sureties in the event of any of the following:  (i) The sureties’ failure to begin Work within a reasonable time in such manner as to insure  full compliance with the Construction Contract within the Contract Time;  (ii) The sureties’ abandonment of the Work;  (iii) If at any time City is of the opinion the sureties’ Work is unnecessarily or unreasonably  delaying the Work;  (iv) The sureties’ violation of any terms of the Construction Contract;  (v) The sureties’ failure to perform according to the Contract Documents; or  (vi) The sureties’ failure to follow City’s instructions for completion of the Work within the  Contract Time.    16.3 Damages to City.    16.3.1 For Contractor's Default.    City will be entitled to recovery of all Losses under law or equity in the event of  Contractor’s default under the Contract Documents.     16.3.2 Compensation for Losses.    In the event that City's Losses arise from Contractor’s default under the Contract  Documents, City shall be entitled to withhold monies otherwise payable to Contractor  until Final Completion of the Project.  If City incurs Losses due to Contractor’s default,  then the amount of Losses shall be deducted from the amounts withheld.  Should the  amount withheld exceed the amount deducted, the balance will be paid to Contractor or  Invitation for Bid (IFB) Package    18                  Rev. May 1, 2012  PART 3 – CONSTRUCTION CONTRACT C13146757    its designee upon Final Completion of the Project.  If the Losses incurred by City exceed  the amount withheld, Contractor shall be liable to City for the difference and shall  promptly remit same to City.    16.4 Suspension by City for Convenience.    City may, at any time and from time to time, without cause, order Contractor, in writing, to  suspend, delay, or interrupt the Work in whole or in part for such period of time, up to an  aggregate of fifty percent (50%) of the Contract Time.  The order shall be specifically identified as  a Suspension Order by City.  Upon receipt of a Suspension Order, Contractor shall, at City’s  expense, comply with the order and take all reasonable steps to minimize costs allocable to the  Work covered by the Suspension Order.  During the Suspension or extension of the Suspension, if  any, City shall either cancel the Suspension Order or, by Change Order, delete the Work covered  by the Suspension Order.  If a Suspension Order is canceled or expires, Contractor shall resume  and continue with the Work.  A Change Order will be issued to cover any adjustments of the  Contract Sum or the Contract Time necessarily caused by such suspension.    A Suspension Order  shall not be the exclusive method for City to stop the Work.    16.5 Termination Without Cause.    City may, at its sole discretion and without cause, terminate this Construction Contract in part or  in whole by giving thirty (30) Days written notice to Contractor. The compensation allowed under  this Paragraph 16.5 shall be the Contractor’s sole and exclusive compensation for such  termination and Contractor waives any claim for other compensation or Losses, including, but not  limited to, loss of anticipated profits, loss of revenue, lost opportunity, or other consequential,  direct, indirect or incidental damages of any kind resulting from termination without cause.      16.5.1 Compensation.    Following such termination and within forty‐five (45) Days after receipt of a billing from  Contractor seeking payment of sums authorized by this Paragraph 16.5, City shall pay the  following to Contractor as Contractor’s sole compensation for performance of the Work :    .1 For Work Performed.  The amount of the Contract Sum allocable to the portion  of the Work properly performed by Contractor as of the date of termination,  less sums previously paid to Contractor.    .2 For Close‐out Costs.  Reasonable costs of Contractor and its Subcontractors and  Sub‐subcontractors for:  (i) Demobilizing and  (ii) Administering the close‐out of its participation in the Project (including,  without limitation, all billing and accounting functions, not including  attorney or expert fees) for a period of no longer than thirty (30) Days  after receipt of the notice of termination.    .3 For Fabricated Items.  Previously unpaid cost of any items delivered to the  Project Site which were fabricated for subsequent incorporation in the Work.    16.5.2 Subcontractors.      Contractor shall include provisions in all of its subcontracts, purchase orders and other  contracts permitting termination for convenience by Contractor on terms that are  consistent with this Construction Contract and that afford no greater rights of recovery  against Contractor than are afforded to Contractor against City under this Section.    Invitation for Bid (IFB) Package    19                  Rev. May 1, 2012  PART 3 – CONSTRUCTION CONTRACT C13146757    16.6 Contractor’s Duties Upon Termination.    Upon receipt of a notice of termination for default or for convenience, Contractor shall, unless the  notice directs otherwise, do the following:  (i) Immediately discontinue the Work to the extent specified in the notice;  (ii) Place no further orders or subcontracts for materials, equipment, services or facilities,  except as may be necessary for completion of such portion of the Work that is not  discontinued;  (iii) Provide to City a description, in writing no later than fifteen (15) days after receipt of the  notice of termination, of all subcontracts, purchase orders and contracts that are  outstanding, including, without limitation, the terms of the original price, any changes,  payments, balance owing, the status of the portion of the Work covered and a copy of  the subcontract, purchase order or contract and any written changes, amendments or  modifications thereto, together with such other information as City may determine  necessary in order to decide whether to accept assignment of or request Contractor to  terminate the subcontract, purchase order or contract;  (iv) Promptly assign to City those subcontracts, purchase orders or contracts, or portions  thereof, that City elects to accept by assignment and cancel, on the most favorable terms  reasonably possible, all subcontracts, purchase orders or contracts, or portions thereof,  that City does not elect to accept by assignment; and  (iii) Thereafter do only such Work as may be necessary to preserve and protect Work already  in progress and to protect materials, plants, and equipment on the Project Site or in  transit thereto.  SECTION 17 CONTRACTOR'S RIGHTS AND REMEDIES.    17.1 Contractor’s Remedies.    Contractor may terminate this Construction Contract only upon the occurrence of one of the  following:    17.1.1 For Work Stoppage.    The Work is stopped for sixty (60) consecutive Days, through no act or fault of Contractor, any  Subcontractor, or any employee or agent of Contractor or any Subcontractor, due to issuance of  an order of a court or other public authority other than City having jurisdiction or due to an act of  government, such as a declaration of a national emergency making material unavailable.  This  provision shall not apply to any work stoppage resulting from the City’s issuance of a suspension  notice issued either for cause or for convenience.    17.1.2 For City's Non‐Payment.    If City does not make pay Contractor undisputed sums within ninety (90) Days after receipt of  notice from Contractor, Contractor may terminate the Construction Contract (30) days following a  second notice to City of Contractor’s intention to terminate the Construction Contract.    17.2 Damages to Contractor.   In the event of termination for cause by Contractor, City shall pay Contractor the sums provided  for in Paragraph 16.5.1 above.  Contractor agrees to accept such sums as its sole and exclusive  compensation and agrees to waive any claim for other compensation or Losses, including, but not  limited to, loss of anticipated profits, loss of revenue, lost opportunity, or other consequential,  direct, indirect and incidental damages, of any kind.  SECTION 18 ACCOUNTING RECORDS.    18.1 Financial Management and City Access.    Contractor shall keep full and detailed accounts and exercise such controls as may be necessary  for proper financial management under this Construction Contract in accordance with generally  Invitation for Bid (IFB) Package    20                  Rev. May 1, 2012  PART 3 – CONSTRUCTION CONTRACT C13146757    accepted accounting principles and practices. City and City's accountants  during normal business  hours, may  inspect, audit and copy Contractor's records, books, estimates, take‐offs, cost reports,  ledgers, schedules, correspondence, instructions, drawings, receipts, subcontracts, purchase  orders, vouchers, memoranda and other data relating to this Project. Contractor shall retain these  documents for a period of three (3) years after the later of (i) final payment or (ii) final resolution  of all Contract Disputes and other disputes, or (iii) for such longer period as may be required by  law.    18.2 Compliance with City Requests.    Contractor's compliance with any request by City pursuant to this Section 18 shall be a condition  precedent to filing or maintenance of any legal action or proceeding by Contractor against City  and to Contractor's right to receive further payments under the Contract Documents.  City many  enforce Contractor’s obligation to provide access to City of its business and other records referred  to in Section 18.1 for inspection or copying by  issuance of a writ or a provisional or permanent  mandatory injunction by a court of competent jurisdiction based on affidavits submitted to such  court, without the necessity of oral testimony.    SECTION 19 INDEPENDENT PARTIES.    Each party is acting in its independent capacity and not as agents, employees, partners, or joint ventures’  of the other party.  City, its officers or employees shall have no control over the conduct of Contractor or  its respective agents, employees, subconsultants, or subcontractors, except as herein set forth.    SECTION 20 NUISANCE.    Contractor shall not maintain, commit, nor permit the maintenance or commission of any nuisance in  connection in the performance of services under this Construction Contract.    SECTION 21 PERMITS AND LICENSES.    Except as otherwise provided in the Special Provisions and Technical Specifications, The Contractor shall  provide, procure and pay for all licenses, permits, and fees, required by the City or other government  jurisdictions or agencies necessary to carry out and complete the Work.  Payment of all costs and expenses  for such licenses, permits, and fees shall be included in one or more Bid items. No other compensation  shall be paid to the Contractor for these items or for delays caused by non‐City inspectors or conditions set  forth in the licenses or permits issued by other agencies.    SECTION 22 WAIVER.    A waiver by either party of any breach of any term, covenant, or condition contained herein shall not be  deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition  contained herein, whether of the same or a different character.    SECTION 23 GOVERNING LAW.    This Construction Contract shall be construed in accordance with and governed by the laws of the State of  California.    Invitation for Bid (IFB) Package    21                  Rev. May 1, 2012  PART 3 – CONSTRUCTION CONTRACT C13146757    SECTION 24 COMPLETE AGREEMENT.    This Agreement represents the entire and integrated agreement between the parties and supersedes all  prior negotiations, representations, and contracts, either written or oral. This Agreement may be amended  only by a written instrument, which is signed by the parties.  SECTION 25 SURVIVAL OF CONTRACT.    The provisions of the Construction Contract which by their nature survive termination of the Construction  Contract or Final Completion, including, without limitation, all warranties, indemnities, payment  obligations, and City’s right to audit Contractor’s books and records, shall remain in full force and effect  after Final Completion or any termination of the Construction Contract.  SECTION 26 PREVAILING WAGES.          This Project is not subject to prevailing wages. The Contractor is not required to pay prevailing wages in  the performance and implementation of the Project, because the City, pursuant to its authority as a  chartered city, has adopted Resolution No. 5981 exempting the City from prevailing wages.  The City  invokes the exemption from the state prevailing wage requirement for this Project and declares that the  Project is funded one hundred percent (100%) by the City of Palo Alto.    Or     The Contractor is required to pay general prevailing wages as defined in Subchapter 3, Title 8 of the  California Code of Regulations and Section 16000 et seq. and Section 1773.1 of the California Labor Code.   Pursuant to the provisions of Section 1773 of the Labor Code of the State of California, the City Council has  obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work  in this locality for each craft, classification, or type of worker needed to execute the contract for this  Project from the Director of the Department of Industrial Relations.  Copies of these rates may be obtained  at cost at the Purchasing office of the City of Palo Alto.  Contractor shall provide a copy of prevailing wage  rates to any staff or subcontractor hired, and shall pay the adopted prevailing wage rates as a minimum.   Contractor shall comply with the provisions of Sections 1775, 1776, 1777.5, 1810, and 1813 of the Labor  Code.  SECTION 27 NON APPROPRIATION.    This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto  Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the  event that the City does not appropriate funds for the following fiscal year for this event, or (b) at any time  within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds  for this Construction Contract are no longer available.  This section shall take precedence in the event of a  conflict with any other covenant, term, condition, or provision of this Agreement.   SECTION 28 AUTHORITY.    The individuals executing this Agreement represent and warrant that they have the legal capacity and  authority to do so on behalf of their respective legal entities.  SECTION 29 ATTORNEY FEES.    Each Party shall bear its own costs, including attorney’s fees through the completion of mediation. If the  claim or dispute is not resolved through mediation and in any dispute described in Paragraph 14.2, the prevailing party in any action brought to enforce the provision of this Agreement may recover its  reasonable costs and attorney’s fees expended in connection with that action.  The prevailing party shall be  Invitation for Bid (IFB) Package    22                  Rev. May 1, 2012  PART 3 – CONSTRUCTION CONTRACT C13146757    entitled to recover an amount equal to the fair market value of legal services provided by attorneys  employed by it as well as any attorney’s’ fees paid to third parties.  SECTION 30 COUNTERPARTS  This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties,  constitute a single binding agreement.  SECTION 31 SEVERABILITY.    In case a provision of this Construction Contract is held to be invalid, illegal or unenforceable, the validity,  legality and enforceability of the remaining provisions shall not be affected.        IN WITNESS WHEREOF, the parties have caused this Construction Contract to be executed the   date and year first above written.             CITY OF PALO ALTO      ____________________________   Purchasing Manager   City Manager      APPROVED AS TO FORM:    ___________________________  Senior Asst. City Attorney    APPROVED:    ___________________________  Public Works Director        CONTRACTOR:  O’GRADY PAVING, INC.      By:___________________________        Name:_________________________        Title:________________________      Attachment B - Bid Summary Palo Alto 2012 Asphalt Paving Project IFB 146757 ITEM #BASE BID DESCRIPTION QUANTITY UNITS 1 AC Paving, 1/2" max, Type A 8,788 TON 95.00$ 834,860.00$ 96.000$ 843,648.00$ 105.000$ 922,740.00$ 108.000$ 949,104.00$ 2 P.C.C. Base Repair, 6" Depth 28,000 SF 10.00$ 280,000.00$ 12.00$ 336,000.00$ 8.00$ 224,000.00$ 14.00$ 392,000.00$ 3 Replace Speed Hump 1 EA 3,000.00$ 3,000.00$ 5,000.00$ 5,000.00$ 5,000.00$ 5,000.00$ 4,500.00$ 4,500.00$ 4 AC Milling Area 506,954 SF 0.36$ 182,503.44$ 0.33$ 167,294.82$ 0.30$ 152,086.20$ 0.39$ 197,712.06$ 5 Interlayer Membrane 19,500 LF 3.25$ 63,375.00$ 3.00$ 58,500.00$ 5.00$ 97,500.00$ 7.00$ 136,500.00$ 6 Crack Sealing 43,000 LF 0.75$ 32,250.00$ 0.50$ 21,500.00$ 0.40$ 17,200.00$ 0.40$ 17,200.00$ 7 Adjust utility box to grade 137 EA 500.00$ 68,500.00$ 320.00$ 43,840.00$ 425.00$ 58,225.00$ 439.00$ 60,143.00$ 8 Adjust manhole to grade 65 EA 600.00$ 39,000.00$ 350.00$ 22,750.00$ 710.00$ 46,150.00$ 439.00$ 28,535.00$ 9 Remove and replace blue pavement marker 28 EA 25.00$ 700.00$ 15.00$ 420.00$ 15.00$ 420.00$ 15.00$ 420.00$ 10 Thermoplastic Striping, Caltrans Detail 4 1,360 LF 3.00$ 4,080.00$ 0.75$ 1,020.00$ 0.70$ 952.00$ 1.00$ 1,360.00$ 11 Thermoplastic Striping, Caltrans Detail 10 2,000 LF 5.00$ 10,000.00$ 0.75$ 1,500.00$ 0.70$ 1,400.00$ 1.00$ 2,000.00$ 12 Thermoplastic Striping, Caltrans Detail 23 10,294 LF 5.00$ 51,470.00$ 1.30$ 13,382.20$ 1.25$ 12,867.50$ 1.30$ 13,382.20$ 13 Thermoplastic Striping, Caltrans Detail 25 9,000 LF 3.00$ 27,000.00$ 1.10$ 9,900.00$ 1.00$ 9,000.00$ 1.00$ 9,000.00$ 14 Thermoplastic Striping, Caltrans Detail 30 100 LF 7.00$ 700.00$ 3.00$ 300.00$ 2.40$ 240.00$ 2.00$ 200.00$ 15 Thermoplastic Striping, Caltrans Detail 38C 120 LF 5.00$ 600.00$ 3.00$ 360.00$ 2.40$ 288.00$ 3.00$ 360.00$ 16 Thermoplastic Striping, Caltrans Detail 39/39A 13,370 LF 1.50$ 20,055.00$ 0.90$ 12,033.00$ 0.85$ 11,364.50$ 1.00$ 13,370.00$ 17 Thermoplastic Striping, White, 12" wide 1,485 LF 3.00$ 4,455.00$ 4.00$ 5,940.00$ 4.00$ 5,940.00$ 4.00$ 5,940.00$ 18 Thermoplastic Striping, White, 4" wide 360 LF 3.00$ 1,080.00$ 2.00$ 720.00$ 1.00$ 360.00$ 1.00$ 360.00$ 19 Thermoplastic Legends 274 EA 4.00$ 1,096.00$ 33.00$ 9,042.00$ 30.00$ 8,220.00$ 35.00$ 9,590.00$ 20 Remove and Replace Type A Vertical Curb and Gutter, 1' pan 3,325 LF 29.00$ 96,425.00$ 44.00$ 146,300.00$ 44.00$ 146,300.00$ 40.00$ 133,000.00$ 21 Remove and Replace Type A Vertical Curb and Gutter, 2' pan 150 LF 45.00$ 6,750.00$ 60.00$ 9,000.00$ 58.00$ 8,700.00$ 50.00$ 7,500.00$ 22 Remove and Replace Type A Vertical Curb and Gutter, 5' pan 240 LF 85.00$ 20,400.00$ 90.00$ 21,600.00$ 88.00$ 21,120.00$ 70.00$ 16,800.00$ 23 Remove and Replace Type B Rolled Curb and Gutter, 3' pan 350 LF 49.00$ 17,150.00$ 65.00$ 22,750.00$ 63.00$ 22,050.00$ 60.00$ 21,000.00$ 24 4' Concrete Valley gutter 40 LF 70.00$ 2,800.00$ 90.00$ 3,600.00$ 88.00$ 3,520.00$ 100.00$ 4,000.00$ 25 City standard curb ramp, typical 10 EA 1,500.00$ 15,000.00$ 1,900.00$ 19,000.00$ 2,500.00$ 25,000.00$ 3,000.00$ 30,000.00$ 26 Truncated Dome Upgrades 55 EA 330.00$ 18,150.00$ 320.00$ 17,600.00$ 330.00$ 18,150.00$ 800.00$ 44,000.00$ 27 Remove and replace concrete sidewalk 5,960 SF 9.00$ 53,640.00$ 7.50$ 44,700.00$ 7.35$ 43,806.00$ 11.00$ 65,560.00$ 28 Remove and replace concrete driveway 9,050 SF 10.00$ 90,500.00$ 11.00$ 99,550.00$ 11.00$ 99,550.00$ 12.00$ 108,600.00$ 29 Install Traffic Signal Detector Loops 1,600 SF 11.00$ 17,600.00$ 16.00$ 25,600.00$ 25.00$ 40,000.00$ 25.00$ 40,000.00$ 30 Reset Catch Basin 21 EA 1,500.00$ 31,500.00$ 900.00$ 18,900.00$ 820.00$ 17,220.00$ 2,000.00$ 42,000.00$ 31 Recycle Inert Construction Material 8,788 TON 5.00$ 43,940.00$ 3.00$ 26,364.00$ 7.00$ 61,516.00$ 1.00$ 8,788.00$ 32 Brick Conform 3,600 SF 10.00$ 36,000.00$ 16.00$ 57,600.00$ 16.00$ 57,600.00$ 30.00$ 108,000.00$ 33 Demolish and remove existing concrete 250 SF 7.00$ 1,750.00$ 4.00$ 1,000.00$ 5.00$ 1,250.00$ 10.00$ 2,500.00$ 34 Traffic Control 1 LS 52,700.00$ 52,700.00$ 50,000.00$ 50,000.00$ 125,000.00$ 125,000.00$ 170,000.00$ 170,000.00$ 35 Tree Trimming 1 LS 6,750.00$ 6,750.00$ 9,000.00$ 9,000.00$ 8,000.00$ 8,000.00$ 10,000.00$ 10,000.00$ 36 Notification of Businesses and Residents 1 LS 6,750.00$ 6,750.00$ 5,000.00$ 5,000.00$ 4,000.00$ 4,000.00$ 7,000.00$ 7,000.00$ BASE BID TOTAL 2,142,529.44$ 2,130,714.02$ 2,276,735.20$ 2,660,424.26$ ITEM # ADD ALT # 1: SHERIDAN AVENUE QUANTITY UNITS 1 AC Paving, 1/2" max, Type A 688 TON 95.00$ 65,360.00$ 100.000$ 68,800.00$ 108.00$ 74,304.00$ 108.00$ 74,304.00$ 2 P.C.C Base Repair- 6" 200 SF 10.00$ 2,000.00$ 12.00$ 2,400.00$ 60.00$ 12,000.00$ 15.00$ 3,000.00$ 3 AC Milling Area 48,636 SF 0.36$ 17,508.96$ 0.32$ 15,563.52$ 0.30$ 14,590.80$ 0.39$ 18,968.04$ 4 Interlayer Membrane 3,000 LF 3.25$ 9,750.00$ 3.00$ 9,000.00$ 5.00$ 15,000.00$ 7.00$ 21,000.00$ 5 Crack Sealing 4,500 LF 0.75$ 3,375.00$ 0.50$ 2,250.00$ 0.40$ 1,800.00$ 0.40$ 1,800.00$ 6 Adjust Utility Box to Grade 12 EA 500.00$ 6,000.00$ 320.00$ 3,840.00$ 420.00$ 5,040.00$ 439.00$ 5,268.00$ 7 Adjust Manhole to Grade 5 EA 600.00$ 3,000.00$ 350.00$ 1,750.00$ 710.00$ 3,550.00$ 439.00$ 2,195.00$ 8 Remove and Replace Type A Vertical Curb and Gutter, 1' Pan 360 LF 29.00$ 10,440.00$ 45.00$ 16,200.00$ 44.00$ 15,840.00$ 45.00$ 16,200.00$ 9 Concrete Driveway 1800 SF 10.00$ 18,000.00$ 11.00$ 19,800.00$ 11.00$ 19,800.00$ 14.00$ 25,200.00$ 10 Concrete Sidewalk 400 SF 9.00$ 3,600.00$ 8.00$ 3,200.00$ 8.00$ 3,200.00$ 12.00$ 4,800.00$ 11 City standard curb ramp, typical 6 EA 1,500.00$ 9,000.00$ 1,900.00$ 11,400.00$ 2,500.00$ 15,000.00$ 3,000.00$ 18,000.00$ 12 Truncated Dome Upgrades 3 EA 330.00$ 990.00$ 350.00$ 1,050.00$ 350.00$ 1,050.00$ 800.00$ 2,400.00$ 13 Recycling of Inert Solid Materials 688 TON 5.00$ 3,440.00$ 3.00$ 2,064.00$ 4.00$ 2,752.00$ 1.00$ 688.00$ 14 Remove and Replace Blue Pavement Markers 3 EA 25.00$ 75.00$ 20.00$ 60.00$ 5.00$ 15.00$ 20.00$ 60.00$ 15 Thermoplastic Striping, White, 12" wide 160 LF 3.00$ 480.00$ 5.00$ 800.00$ 4.00$ 640.00$ 5.00$ 800.00$ 16 Thermoplastic legend 32 EA 4.00$ 128.00$ 33.00$ 1,056.00$ 30.00$ 960.00$ 40.00$ 1,280.00$ 17 Traffic Control 1 LS 52,700.00$ 52,700.00$ 5,000.00$ 5,000.00$ 3,000.00$ 3,000.00$ 11,111.11$ 11,111.11$ 18 Tree Trimming 1 LS 6,750.00$ 6,750.00$ 300.00$ 300.00$ 500.00$ 500.00$ 3,000.00$ 3,000.00$ 19 Project Notifications 1 LS 6,750.00$ 6,750.00$ 2,500.00$ 2,500.00$ 600.00$ 600.00$ 3,000.00$ 3,000.00$ ADD ALTERNATE # 1 TOTAL 219,346.96$ 167,033.52$ 189,641.80$ 213,074.15$ G. BORTOLOTTO & CO, INC. O'GRADY CONSTRUCTION GRANITE CONSTRUCTION COMPANY G. BORTOLOTTO & CO, INC. ENGINEER'S ESTIMATE O'GRADY CONSTRUCTION GRANITE CONSTRUCTION COMPANY ENGINEER'S ESTIMATE Attachment B - Bid Summary Palo Alto 2012 Asphalt Paving Project IFB 146757 ITEM # ADD ALT # 2: GRANT AVENUE QUANTITY UNITS 1 AC Paving, 1/2" max, Type A 803 TON 95.00$ 76,285.00$ 99.00$ 79,497.00$ 105.000$ 84,315.00$ 108.00$ 86,724.00$ 2 P.C.C Base Repair- 6" 500 SF 10.00$ 5,000.00$ 12.00$ 6,000.00$ 30.00$ 15,000.00$ 14.00$ 7,000.00$ 3 AC Milling Area 46,044 SF 0.36$ 16,575.84$ 0.30$ 13,813.20$ 0.32$ 14,734.08$ 0.40$ 18,417.60$ 4 Interlayer Membrane 3,000 LF 3.25$ 9,750.00$ 3.00$ 9,000.00$ 5.50$ 16,500.00$ 7.00$ 21,000.00$ 5 Crack Sealing 4,500 LF 0.75$ 3,375.00$ 0.50$ 2,250.00$ 0.40$ 1,800.00$ 0.50$ 2,250.00$ 6 Adjust Utility Box to Grade 13 EA 500.00$ 6,500.00$ 320.00$ 4,160.00$ 420.00$ 5,460.00$ 439.00$ 5,707.00$ 7 Adjust Manhole to Grade 5 EA 600.00$ 3,000.00$ 350.00$ 1,750.00$ 710.00$ 3,550.00$ 439.00$ 2,195.00$ 8 Remove and Replace Type A Vertical Curb and Gutter, 1' Pan 640 LF 29.00$ 18,560.00$ 45.00$ 28,800.00$ 45.00$ 28,800.00$ 45.00$ 28,800.00$ 9 Concrete Driveway 500 SF 10.00$ 5,000.00$ 11.00$ 5,500.00$ 11.00$ 5,500.00$ 14.00$ 7,000.00$ 10 Concrete Sidewalk 400 SF 9.00$ 3,600.00$ 8.00$ 3,200.00$ 8.00$ 3,200.00$ 12.00$ 4,800.00$ 11 Demo Concrete 125 SF 7.00$ 875.00$ 5.00$ 625.00$ 4.00$ 500.00$ 10.00$ 1,250.00$ 12 City standard curb ramp, typical 9 EA 1,500.00$ 13,500.00$ 1,900.00$ 17,100.00$ 2,500.00$ 22,500.00$ 3,000.00$ 27,000.00$ 13 Reset Catch Basin 3 EA 1,500.00$ 4,500.00$ 800.00$ 2,400.00$ 900.00$ 2,700.00$ 2,000.00$ 6,000.00$ 14 Recycling of Inert Solid Materials 803 TON 5.00$ 4,015.00$ 3.00$ 2,409.00$ 4.00$ 3,212.00$ 1.00$ 803.00$ 15 Remove and Replace Blue Pavement Markers 3 EA 25.00$ 75.00$ 20.00$ 60.00$ 15.00$ 45.00$ 20.00$ 60.00$ 16 Thermoplastic Striping, White, 12" wide 150 LF 3.00$ 450.00$ 5.00$ 750.00$ 4.00$ 600.00$ 5.00$ 750.00$ 17 Thermoplastic Striping, White, 4" wide 1,200 LF 3.00$ 3,600.00$ 1.10$ 1,320.00$ 1.00$ 1,200.00$ 1.00$ 1,200.00$ 18 Thermoplastic legend 24 EA 4.00$ 96.00$ 33.00$ 792.00$ 30.00$ 720.00$ 40.00$ 960.00$ 19 Traffic Control 1 LS 52,700.00$ 52,700.00$ 5,000.00$ 5,000.00$ 3,000.00$ 3,000.00$ 11,111.11$ 11,111.11$ 20 Tree Trimming 1 LS 6,750.00$ 6,750.00$ 2,000.00$ 2,000.00$ 500.00$ 500.00$ 3,000.00$ 3,000.00$ 21 Project Notifications 1 LS 6,750.00$ 6,750.00$ 1,500.00$ 1,500.00$ 600.00$ 600.00$ 3,000.00$ 3,000.00$ ADD ALTERNATE # 2 TOTAL 240,956.84$ 187,926.20$ 214,436.08$ 239,027.71$ ITEM # ADD ALT # 3: SEALE AVENUE QUANTITY UNITS 1 AC Paving, 1/2" max, Type A 592 TON 95.00$ 56,240.00$ 100.00$ 59,200.00$ 112.000$ 66,304.00$ 108.00$ 63,936.00$ 2 P.C.C Base Repair- 6"3,000 SF 10.00$ 30,000.00$ 12.00$ 36,000.00$ 15.00$ 45,000.00$ 14.00$ 42,000.00$ 3 AC Milling Area 39672 SF 0.36$ 14,281.92$ 0.30$ 11,901.60$ 0.40$ 15,868.80$ 0.50$ 19,836.00$ 4 Interlayer Membrane 4000 LF 3.25$ 13,000.00$ 3.00$ 12,000.00$ 5.50$ 22,000.00$ 7.00$ 28,000.00$ 5 Crack Sealing 6000 LF 0.75$ 4,500.00$ 0.50$ 3,000.00$ 0.20$ 1,200.00$ 0.50$ 3,000.00$ 6 Adjust Utility Box to Grade 16 EA 500.00$ 8,000.00$ 320.00$ 5,120.00$ 420.00$ 6,720.00$ 439.00$ 7,024.00$ 7 Adjust Manhole to Grade 7EA 600.00$ 4,200.00$ 350.00$ 2,450.00$ 710.00$ 4,970.00$ 439.00$ 3,073.00$ 8 Remove and Replace Type A Vertical Curb and Gutter, 1' Pan 940 LF 29.00$ 27,260.00$ 45.00$ 42,300.00$ 45.00$ 42,300.00$ 45.00$ 42,300.00$ 9 Concrete Driveway 6700 SF 10.00$ 67,000.00$ 11.00$ 73,700.00$ 11.00$ 73,700.00$ 14.00$ 93,800.00$ 10 Concrete Sidewalk 1100 SF 9.00$ 9,900.00$ 8.00$ 8,800.00$ 8.00$ 8,800.00$ 12.00$ 13,200.00$ 11 Brick Conform 100 SF 10.00$ 1,000.00$ 16.00$ 1,600.00$ 15.00$ 1,500.00$ 10.00$ 1,000.00$ 12 Demo Concrete 100 SF 7.00$ 700.00$ 5.00$ 500.00$ 4.00$ 400.00$ 10.00$ 1,000.00$ 13 City standard curb ramp, typical 5EA1,500.00$ 7,500.00$ 1,900.00$ 9,500.00$ 2,500.00$ 12,500.00$ 3,000.00$ 15,000.00$ 14 Truncated Dome Upgrades 2EA 330.00$ 660.00$ 350.00$ 700.00$ 350.00$ 700.00$ 800.00$ 1,600.00$ 15 Reset Catch Basin 1EA1,500.00$ 1,500.00$ 900.00$ 900.00$ 800.00$ 800.00$ 2,000.00$ 2,000.00$ 16 Recycling of Inert Solid Materials 592 TON 5.00$ 2,960.00$ 3.00$ 1,776.00$ 4.00$ 2,368.00$ 1.00$ 592.00$ 17 Remove and Replace Blue Pavement Markers 4EA 25.00$ 100.00$ 20.00$ 80.00$ 15.00$ 60.00$ 20.00$ 80.00$ 18 Thermoplastic Striping, White, 12" wide 100 LF 3.00$ 300.00$ 5.00$ 500.00$ 4.00$ 400.00$ 5.00$ 500.00$ 19 Thermoplastic legend 16 EA 4.00$ 64.00$ 33.00$ 528.00$ 30.00$ 480.00$ 40.00$ 640.00$ 20 Traffic Control 1LS52,700.00$ 52,700.00$ 5,000.00$ 5,000.00$ 3,000.00$ 3,000.00$ 11,111.11$ 11,111.11$ 21 Tree Trimming 1LS6,750.00$ 6,750.00$ 2,000.00$ 2,000.00$ 500.00$ 500.00$ 2,000.00$ 2,000.00$ 22 Project Notifications 1LS6,750.00$ 6,750.00$ 1,500.00$ 1,500.00$ 600.00$ 600.00$ 2,000.00$ 2,000.00$ ADD ALTERNATE # 3 TOTAL 248,801.92$ 279,055.60$ 310,170.80$ 353,692.11$ ITEM # ADD ALT # 4: INSTALL GREEN BIKE LANES QUANTITY UNITS 1 Install Approx 250 LF of 5' wide green bike lane materia 1LS15,000.00$ 15,000.00$ 5,000.000$ 5,000.00$ 4,000.000$ 4,000.00$ 7,000.00$ 7,000.00$ ADD ALTERNATE # 4 TOTAL 15,000.00$ 5,000.00$ 4,000.00$ 7,000.00$ Base Bid Total 2,142,529.44$ Base Bid Total 2,130,714.02$ Base Bid Total 2,276,735.20$ Base Bid Total 2,660,424.26$ Add Alt #1 219,346.96$ Add Alt #1 167,033.52$ Add Alt #1 189,641.80$ Add Alt #1 213,074.15$ Add Alt #2 240,956.84$ Add Alt #2 187,926.20$ Add Alt #2 214,436.08$ Add Alt #2 239,027.71$ Add Alt #3 248,801.92$ Add Alt #3 279,055.60$ Add Alt #3 310,170.80$ Add Alt #3 353,692.11$ Add Alt #4 15,000.00$ Add Alt #4 5,000.00$ Add Alt #4 4,000.00$ Add Alt #4 7,000.00$ Grand Total: 2,866,635.16$ Grand Total: 2,769,729.34$ Grand Total: 2,994,983.88$ Grand Total: 3,473,218.23$ ENGINEER'S ESTIMATE O'GRADY CONSTRUCTION GRANITE CONSTRUCTION COMPANY ENGINEER'S ESTIMATE O'GRADY CONSTRUCTION GRANITE CONSTRUCTION COMPANY G. BORTOLOTTO & CO, INC. ENGINEER'S ESTIMATE O'GRADY CONSTRUCTION GRANITE CONSTRUCTION COMPANY G. BORTOLOTTO & CO, INC. G. BORTOLOTTO & CO, INC. PE-86070 IFB 146757 STREET FROM TO Birch Street California Avenue Sherman Avenue Birch Street Sherman Avenue Grant Avenue Birch Street Grant Avenue Sheridan Avenue Birch Street Sheridan Avenue Oregon Expy Ramp Byron Street Hawthonre Avenue Everett Avenue Byron Street Everett Avenue Lytton Avenue Chaucer Street City Limit University Avenue Curtner Avenue El Camino Real Park Blvd Forest Court Forest Avenue End Forest Avenue Lincoln Avenue Boyce Avenue Fulton Avenue Lytton Avenue University Avenue Fulton Avenue University Avenue Hamilton Avenue Greenwood Avenue Hutchinson Avenue Newell Road Homer Avenue Guinda Street Boyce Street Kingsley Avenue Cowper Street Webster Street Maybell Avenue Pena Court El Camino Real Oxford Avenue Yale Street El Camino Real Park Boulevard California Avenue Sherman Avenue Park Boulevard Sherman Avenue Grant Avenue Park Boulevard Grant Avenue Sheridan Avenue Park Boulevard Sheridan Avenue Page Mill Road Park Boulevard Matadero Avenue Wilton Avenue Park Boulevard Wilton Avenue Curtner Avenue Palo Alto Avenue Alma Street El Camino Real Sand Hill Road El Camino Real Arboretum Street List Attachment C: Palo Alto 2012 Asphalt Paving Project 7/12/12 City of Palo Alto (ID # 3009) City Council Staff Report Report Type: Consent Calendar Meeting Date: 7/23/2012 July 23, 2012 Page 1 of 3 (ID # 3009) Summary Title: Establishing GO Bond Tax Levy Title: Adoption of Resolution Establishing Fiscal Year 2012-13 Secured and Unsecured Property Tax Levy for the City of Palo Alto’s General Obligation Bond Indebtedness (Measure N) From: City Manager Lead Department: Administrative Services Recommendation Adopt a resolution (Attachment A) approving the establishment of the Fiscal Year 2012-13 property tax levy of $12.88 per $100,000 in Assessed Value (AV) for the secured and utility tax roll and $15.51 per $100,000 in AV for the unsecured tax roll for the City of Palo Alto's Measure N General Obligation Bond Library Bonds (First Series). Background On November 4, 2008, City voters passed Measure N which gave the City authority to issue a maximum amount of $76,000,000 million of General Obligation bonds (the "Bonds") for capital improvements to the Mitchell Park, Downtown, and Main libraries and to the Mitchell Park community center. The City successfully sold the first of two series of Bonds to provide $55.1 million in funds for Mitchell Park Library, Mitchell Park Community Center, and Downtown Library construction costs as well as design costs for the Main Library. Both Standard and Poor's (S &P) and Moody's awarded their highest credit ratings, Triple A, to the Bonds. Discussion Debt service payments on these Bonds are paid through ad valorem taxes on all taxable land and improvements (both secured and unsecured assessment roll) within the City. Staff is seeking Council approval of the attached resolution July 23, 2012 Page 2 of 3 (ID # 3009) (Attachment A) which authorizes the placement of an ad valorem property tax levy in the amount of $0.01288 per $100 or $12.88 per $100,000 in AV for the secured tax roll; and $0.01551 per $100 or $15.51 per $100,000 in AV for the unsecured tax roll. In comparison, prior years secured and unsecured tax levy was $15.48 and $17.11, respectively, per $100,000 of AV. The assessment rate for FY 2012-13 is dropping. Two factors are contributing to this: the rise in the Assessed Valuation for properties throughout Palo Alto and the application of a bond issuance premium that was realized at the time the first series of Library Bonds were issued. The latter requires an explanation and how staff intends to apply it to the annual assessment over the remaining life of the bonds. General Obligation Bonds are unique in that they must be issued, by Government Code, at a par value that does not include an amount to pay the underwriting fee. To generate this fee and to market the bonds, interest rates on the bonds to be paid to investors were set slightly higher than the market rates. The par amount of bonds issued in June 2010 was $55.305 million. Of this amount, $55.082 million was deposited into the Project Fund for the projects described above and $0.223 million was paid for cost of issuances expenses (e.g., disclosure counsel, rating agencies). As a consequence of the interest rates to be paid on the bonds and investor demand, a premium of $3.766 million was generated. Of this, $0.348 million went for the underwriter’s discount and $3.418 million in premium remained. Based on initial information from the City’s Financial Advisor and Bond Counsel, staff believed the remaining $3.418 was useable toward the project if funds were needed. Several months ago staff learned, after additional inquiry, that the remaining premium must be used to offset annual debt service. In effect, use of the premium lowers the true interest cost to property owners to that cited at the time of the bond issuance, 4.2 percent. Based on the 30 year life of the bonds, staff will amortize the $3.418 million in premiums over 30 years or offset the annual assessment by $113,933 per year. Since FY 2012-13 represents the third year of bond payments, $341,800 will be applied toward FY 2012-13 debt service and the remaining years will be offset by $113,933. July 23, 2012 Page 3 of 3 (ID # 3009) It is important to note that the City still has $20.695 million in authority left for the second series of bonds under Measure N. This is derived by the $76.000 million authorized by voters less the $55.305 million issued in the first series. With the new assessment for FY 2012-13, a house with an assessed value of $1 million, for example, would see an annual assessment of $128.80 on their property tax bill. It is important to note that the secured and unsecured tax levy of $12.88 and $15.51 assessment, respectively, is for the first series of bonds and that a second series of bonds will be issued for construction costs on the Main Library. Resource Impact The first series bond issuance results in a 2013 calendar year debt service expenditure of approximately $3.5 million and Council approval of the attached resolution will result in ad valorem tax levy revenue of $3.1 million with the difference attributable to available funds on hand being applied toward the 2013 calendar year debt service payments. Again, secured and unsecured property owners will see a levy of $12.88 and $15.51 per $100,000 of AV on their 2012-13 property tax statement. Environmental Review There is no environmental review required for this report. Attachments:  Attachment A: Resolution Establishing FY 2012-13 Property Tax Levy (PDF)  Exhibit A General Obligation Bonds, Election of 2008, Series 2010 Tax Rate Calculation Based on 2012-13 AV (PDF) Prepared By: Tarun Narayan, Senior Financial Analyst Department Head: Lalo Perez, Chief Financial Officer City Manager Approval: ____________________________________ James Keene, City Manager Not Yet Approved  120713 jb 0130983 1 Resolution No. _______  Resolution of the Council of the City of Palo Alto Establishing the Fiscal Year  2012‐13 Property Tax Levy of $12.88 Per $100,000 of Secured and $15.51  Per $100,000 of Unsecured Assessed Valuations for the City’s General  Obligation Bond Indebtedness (Measure N Library Projects)       R E C I T A L S    A.  The City of Palo Alto’s (“City”) general election held on November 4, 2008, more  than two thirds of voters approved Measure N, authorizing the issuance of general obligation  bonds in the amount not to exceed $76,000,000 (the “Authorization”) to fund construction of a  new Mitchell Park Library and Community center and renovation and improvements to  Downtown and Main libraries; and    B.  Pursuant to the Authorization, the City issued one series (Series 2010A) of  general obligation bonds in June 2010 that yielded $55.1 million for project needs; and    C.  The City is obligated to levy ad valorem taxes on all property within the City  subject to taxation by the City, without limitation on rate or amount (except with respect to  certain personal property which is taxed at limited rates), for the payment of the debt service  on the Bonds; and    D.  The City is obligated to direct the County of Santa Clara to collect such ad  valorem taxes in such amounts and at such times as is necessary to ensure the timely payment  of debt service on the Bonds; and    E. The amount of the annual ad valorem tax levied by the City to repay the Bonds is  determined by the relationship between the assessed valuation of taxable property in the City  and the amount of debt service due on the bonds.      The Council of the City of Palo Alto RESOLVES as follows:     SECTION 1.  Pursuant to the Authorization, an ad valorem property tax is hereby  established to be levied on all land and improvements in the City of Palo Alto during fiscal year  2012‐13 in the amount of $0.01288 per $100 in assessed value for the secured and utility tax  roll and $0.01551 per $100 in assessed value for the unsecured tax roll based on the  calculations set forth in the attached Exhibit "A".     SECTION 2.  The City’s Director of Administrative Services shall cause a certified  copy of this Resolution to be delivered to the Auditor of the County of Santa Clara for entry in  the assessment book of the respective sums in dollars and cents.      Not Yet Approved  120713 jb 0130983 2  SECTION 3.   The Council finds that this is not a project under the California  Environmental Quality Act and, therefore, no environmental impact assessment is necessary.      INTRODUCED AND PASSED:     AYES:    NOES:    ABSENT:    ABSTENTIONS:    ATTEST:          __________________________  ______________________________  City Clerk      Mayor    APPROVED AS TO FORM:    APPROVED:    __________________________  ______________________________  Senior Asst. City Attorney    City Manager           ______________________________         Director of Administrative Services / CFO  A) Assessed Valuations (AV) 1 ) 2012-13 Taxable Secured Assessed Valuation (AV)22,337,036,861.00$ 2 ) 2012-13 Taxable Unsecured AV 1,355,969,707.00$ 3 ) Less: Estimated Delinquency 1.02% (13,830,891.01) 4 ) Net Taxable Unsecured AV 1,342,138,815.99 B) Tax Levy Requirement 2012-13 Debt Service Payments 5 ) February 1,2013 1,237,534.38$ 6 ) August 1, 2013 2,257,534.38 7 ) Total Calendar Year 2013 Debt Service Payment 3,495,068.76 8 ) Excess Funds on Hand Applied Toward Debt Servce (416,819.79) 9 ) Sub-total 3,078,248.97 10 ) Santa Clara County Administration Fee (0.25% of Principal & Interest) 7,695.62 11 )Total 2012-13 Annual Debt Service Requirement 3,085,944.59 C) Secured and Unsecured Tax Rate 12 )2012-13 Unsecured Tax Rate per $100 of Unsecured AV (Prior Year's Secured Tax Rate) 0.015510$ 13 )2012-13 Unsecured Tax Rate per $100,000 of Unsecured AV 15.51$ 14 ) 2012-13 Estimated Revenue from Unsecured AV (line 4 divide by 100 times by line 12) 208,165.73$ 15 ) 2012-13 Estimated Revenue from Secured AV (line 11 minus line 13) 2,877,778.86 16 ) Total 2012-13 Annual Debt Service Requirement 3,085,944.59$ 17 )2012-13 Secured Tax Rate per $100 of Secured AV (line 14 divided by line 1*100) 0.01288$ 18 )2012-13 Secured Tax Rate per $100,000 of Secured AV (line 14 divided by line 1 times 100,000) 12.88$ Exhibit A City of Palo Alto General Obligation Bonds, Election of 2008, Series 2010 Tax Rate Calculation Based on 2012-13 Assessed Values S:\ASD\Treasury\T Narayan\Debt Service\2010 General Obligation (Library) Bonds\GO Tax Rate Calculation 2.xls 7/16/20123:40 PM City of Palo Alto (ID # 2998) City Council Staff Report Report Type: Consent Calendar Meeting Date: 7/23/2012 July 23, 2012 Page 1 of 6 (ID # 2998) Summary Title: Appeal of ARB Approval of Casa Olga Hotel Title: Appeal of Director’s Architectural Review Approval of Site Improvements Associated with the Conversion of an Existing Building to an 86 Room Hotel with Ground Floor Restaurant and a Design Enhancement Exception (DEE) and Sign Exceptions at 180 Hamilton Avenue (Casa Olga) From:City Manager Lead Department: Planning and Community Environment Recommendation Staff recommends that Council uphold the Director of Planning and Community Environment’s decision to approve the Architectural Review application, Design Enhancement Exception, and Sign Exceptions for the Casa Olga Hotel project based upon the findings and conditions of approval described in the Record of Land Use Action (Attachment A). Executive Summary On April 10, 2012, an application for Architectural Review was submitted for the conversion of the existing Casa Olga site, a legal non-complying facility, into an 86-room boutique hotel. The conversion of the building for this use is relatively uncomplicated since it was originally developed in the mid 1970’s as a 72-room hotel. The Architectural Review Board reviewed and recommended approval of the project on June 7, 2012 and the Director of Planning and Community Environment approved the project on June 12, 2012. Within the prescribed timeframe, one appeal of the approval decision was filed by Mr. Ken Alsman, a Professorville resident and downtown business operator. The appeal recognizes that the proposed project meets the legal requirements for parking, but cites concerns about the project’s real impacts upon the available parking for the surrounding neighborhood residents.The appeal does not take exception with the Architectural Review criteria required for project approval. The staff believes that there is no basis for the appeal as the design criteria are met.The Council’s action on Consent upholds the Director’s approval, unless a minimum of three Councilmembers pull the item off Consent and set a public hearing for a future date. Background Review Process and Council Purview July 23, 2012 Page 2 of 6 (ID # 2998) The City’s Zoning Ordinance provides that appeal of the Director’s decision on an Architectural Review application is reviewed by placement on the Council consent calendar within 30 days after the filing of the appeal. The Director’s action is approved on consent unless a minimum of three (3) Council members vote to pull the item from consent and schedule a public hearing for a future date (PAMC 18.77.070(f)).The criteria for Council review are the same as those used by the Architectural Review Board and the Director, specifically the 16 findings (as applicable) associated with Architectural Review, enumerated in Section 18.76.020(d)of the Code. These findings are related only to the design of the building and site, and are addressed by the ARB and staff in the Record of Land Use Action (ROLUA). Project Description The site is 8,500 square feet (sf) and was developed in the mid 1970’s as an eight-story hotel (with about 50,000 sf of floor area). It was never used as such, but instead, the 72 rooms and top floor kitchen and dining areas were used for an intermediate care facility, and later as single room occupancy rentals when the care facility had financial issues. The existing building is 76 feet tall and built out to the property lines on three sides; the ground floor is setback nine feet six inches from the Hamilton Avenue property line. The first floor of the building includes an at- grade parking garage with five vehicle parking spaces accessed from Emerson Street. Along both street frontages, there are existing city street trees (two on Emerson and three on Hamilton). A unique feature of this building is the tile mosaic of “El Palo Alto” that extends six stories in height on the corner of the building on the Emerson side. The existing building is considered a legal non-complying facility due to its height and floor area ratio (FAR), which exceeds the current development standards. Currently, the site is undergoing tenant improvements that include seismic upgrades to the building. The proposed exterior modification project is primarily the re-skinning of the building facades to update the building’s appearance for a hotel use. The design includes the partial cladding of the building with aluminum composite panels with a natural wood finish. The cladding would be applied partially to the Emerson façade, to the overhang features (both fascia and underside) at the top of the building and first floor, and to the vertical side panel proposed on the Hamilton frontage. The non-street facing elevations include partial cladding treatment as well. The proposed improvements also include the following exterior design features: ·the replacement of the asbestos balcony fascias with new fiber cement paneling; ·painting of the existing concrete, stucco, and brick facades; ·replacement of storefront glazing and balcony rails; ·the addition of perforated aluminum privacy panels along each of the balconies; ·use of the perforated aluminum panels on the corner ground floor walls with 24 hour backlighting to highlight an abstract tree image in the panels; ·new street trees, planters, and new paving; and ·refurbishing of the “El Palo Alto” mosaic. July 23, 2012 Page 3 of 6 (ID # 2998) Additional design and project details are provided in the applicant’s project description (Attachment D). In addition to the façade and other exterior improvements, the project includes replacement of the garage with the primary hotel entrance and reception area, as well as back-of-house service functions needed for the hotel and new ground floor restaurant. The restaurant would be approximately 1,300 sf and include outdoor seating along Hamilton Avenue under a new trellis element. The first floor would include the addition of 157 sf for an enclosed trash area on the Hamilton Avenue frontage and conversion of the interior side outdoor space (215 sf) into back of house uses. Another notable exterior change is the proposed infill of a covered terrace, approximately 550 sf, on the eighth floor to accommodate larger sized guest suites (where the terrace covering is the solid, permanent roof of the building). The driveway curb cut on Emerson would be closed and replaced with new sidewalk and striped for valet service. The project scope also includes the location of signage for the hotel, one above the hotel entrance canopy on Emerson Street and the other as a projecting sign on the Hamilton Avenue frontage. The signage location and general concepts are shown in the plans, but the actual sign text is still being developed by the hotel. The sign details, once designed and submitted, will be presented to the ARB for review and approval. The signage location for the restaurant is not included with this project; restaurant signage will be subject to architectural review once a tenant is acquired. The two hotel signs require Sign Exceptions due to placement and/or size. The hotel signs are discussed further in this report within the Sign Exception discussion. Architectural Review Board Action On June 7, 2012, the Architectural Review Board (ARB) reviewed and unanimously recommended approval with conditions for the project. Because the ARB had reviewed the project previously in two preliminary reviews, the discussion was limited and no significnt issues were raised. The meeting minutes are attached for reference (Attachment F). Comments made by the ARB in the previous meetings have been summarized by the applicant and are included in Attachment D. At the ARB meeting, there were one public speaker who was concerned about the site’s management of their garbage area and the possible traffic and circulation impacts with regard to guests and deliveries. The appellant was not present at the meeting. Discussion Appeal On June 27, 2012, an appeal was filed by Mr. Ken Alsman. He stated that he was “not appealing this on the basis of the design or the project’s “technical” ability to meet City parking standards. Rather, this appeal is based on the failure of City criteria and the planning and design review processes to take into account or even mention the devastating impact the lack of REAL parking for this project and for Palo Alto’s downtown commercial districts has on adjacent residential neighborhoods.” The full text of the appeal is included as Attachment B. July 23, 2012 Page 4 of 6 (ID # 2998) Parking At the time the parking assessment was calculated for this site, the City staff determined that 200 spaces were required for the building. With five spaces provided on-site, the property was assessed for 195 parking spaces. The proposed project would eliminate the five on-site spaces, requiring the applicant to pay in-lieu fees towards the construction of future parking for these removed spaces (at the current rate of $60,750 per space). As noted, no net new floor area is proposed, and no additional parking spaces are required to be provided on site for the conversion of garage area to habitable area. Staff has determined that the project, as conditioned to pay in-lieu parking fees, would comply with the zoning code with regards to parking requirements. In the effort to reduce the parking needs of the hotel use, the applicant has prepared a transportation demand management (TDM) plan (Attachment E) and intends to implement this plan to lessen the parking demands associated with the project. With regard to secure on-site bike parking, the hotel will allow guests to bring their bikes up to their rooms; this allowance provides more than adequate bike storage. The hotel operator will also provide valet parking for hotel guests and is currently working to find an appropriate private partner for this. The valet program will be required to be approved by the Director of Planning, as well as the Police Department. Staff has acknowledged the concern regarding impacts on street parking in residential neighborhoods adjacent to the downtown commercial area. The Transportation Division has been working with the residential neighborhood on a residential parking permit program to help address this larger issue for the residents. Other parking study efforts and improvements were outlined to the Council on July 16, 2012. The proposed project meets the City’s parking requirement and staff believes the parking issue is not relevant to the architectural review. Design Enhancement Exception The purpose of a Design Enhancement Exception (DEE) is to permit a minor exception to zoning regulations when doing so will enhance the design of a proposed project without altering the function or use of the site, or its impact on surrounding properties. The project includes new architectural elements added to the building that are part of the overall redesign of the new facades; these features do not increase the usable area of the building. The expanded roof canopy and the new entrance canopy on Emerson Street are subject to a DEE for the respective projections beyond the existing conditions of the building, which are limited by PAMC section 18.18.120(b). Additional discussion is provided in the attached ARB staff report (Attachment C). Sign Exception The project includes a request for the approval of the basic sign concepts for the hotel with the final details to return to the ARB for review and approval. The two signs requested require Sign Exceptions due to their placement (for the entrance canopy) and size/height (projecting sign). Additional discussion is provided in the attached ARB staff report (Attachment C). July 23, 2012 Page 5 of 6 (ID # 2998) Policy Implications The proposed project is consistent with the Comprehensive Plan and staff believes there are no other substantive policy implications. The project is consistent with Comprehensive Plan policies related to business and economics:the Comprehensive Plan encourages owners to upgrade or replace existing commercial properties so that these commercial areas are more competitive and better serve the community. The proposed project is consistent with the following specific Comprehensive Goals and Policies: Program L-11: Promote increased compatibility, interdependence, and support between commercial and mixed use centers and the surrounding residential neighborhoods; and Policy T-23: Encourage pedestrian friendly design features such as sidewalks, street trees, on street parking, public spaces, gardens, outdoor furniture, art and interesting architectural detail. Resource Impacts The cost of project review by all staff is recovered by fees paid by the applicant. As a hotel use, the project would generate transit occupancy tax (TOT) that would benefit the City, and the restaurant would provide minor sales tax and property tax revenues.Staff estimates that City TOT revenues from the project would amount to approximately $700,000 (86 rooms at $250/night x 365 nights x 75% occupancy x 12% TOT) annually. Some increase in sales tax and property tax is likely as well, though not nearly as significant as the TOT. Environmental Review A Negative Declaration (ND) was prepared for the project in accordance with the California Environmental Quality Act (CEQA) and adopted on June 12, 2012. The public comment period for the Negative Declaration ran from May 18 through June 6, 2012. Staff received no comments on the document. Attachments: ·Attachment A: Draft Record of Land Use Action(DOC) ·Attachment B: Appeal received June 12, 2012 (PDF) ·Attachment C: ARB Staff Report w/o attachment, June 7, 2012(PDF) ·Attachment D: Project Decription (PDF) ·Attachment E: Transportation Demand Management (TDM) Plan (DOCX) ·Attachment F: ARB Meeting Verbatim Minutes, June 7, 2012 (DOC) ·Attachment G: Zoning Compliance Table (DOC) ·Attachment H: Public Correspondence, July 18, 2012 (PDF) ·Attachment I : Development Plans (Hardcopies for Council Members Only)(TXT) Prepared By:Clare Campbell, Planner July 23, 2012 Page 6 of 6 (ID # 2998) Department Head:Curtis Williams, Director City Manager Approval: ____________________________________ James Keene, City Manager 1 DRAFT ACTION NO. 2012-05 RECORD OF THE COUNCIL OF THE CITY OF PALO ALTO LAND USE ACTION FOR 180 HAMILTON AVENUE, THE CASA OLGA HOTEL CONVERSION: ARCHITECTURAL REVIEW 12PLN-00147 (JOIE DE VIVRE HOSPITALITY, APPLICANT) On July 23, 2012, the Council upheld the Director of Planning and Community Environment’s June 12, 2012 decision to approve the Architectural Review application of the for the conversion of the existing Casa Olga site, a legal non-complying facility, into an 86-room boutique hotel making the following findings, determination and declarations: SECTION 1. Background.The City Council of the City of Palo Alto (“City Council”) finds, determines, and declares as follows: A.On April 10, 2012, Steinberg Architects, on behalf of Casa Olga and Joie de Vivre Hospitality, applied for Architectural Review of an existing eight story building and conversion to an 86 room hotel use and ground floor restaurant with a Design Enhancement Exception (DEE) for a roof extension and new entrance canopy and Sign Exceptions for one canopy sign and a projecting sign. Zone: CD-C (P). (“The Project”). B.Following staff review, the Architectural Review Board reviewed the project on June 7, 2012 and voted [4-0]to recommend the Director of Planning and Community Environment’s (“Director”) to approve the project. The ARB’s action is contained in the CMR #2998. C.On June 12, 2012, the Director of Planning and Community Environment (Director) received the Architectural Review Board (ARB) recommendation and approved the Architectural Review (AR) application. Findings and conditions of approval recommended by the ARB were incorporated into the approval (and have been incorporated into this ROLUA). D.On June 27, 2012, within the prescribed timeframe,an appeal of the Director’s decision was filed. SECTION 2.Environmental Review. A Negative Declaration (ND) was prepared for the project in accordance with the California Environmental Quality Act (CEQA) and adopted on June 12, 2012. The public comment period for the Negative Declaration ran from May 18 through June 6, 2012. Staff received no comments on the document. Attachment A 2 3 SECTION 3.Architectural Review Findings. 1.The design is consistent and compatible with applicable elements of the Palo Alto Comprehensive Plan. This finding can be made in the affirmative in that the project incorporates quality design that recognizes the importance of the area as described in the Comprehensive Plan. The project is also consistent with The Palo Alto Comprehensive Plan policies related to business and economics. The Comprehensive Plan encourages owners to upgrade or replace existing commercial properties so that these commercial areas are more competitive and better serve the community. The proposed project is also consistent with the following Comprehensive Goals and Policies: Program L-11: Promote increased compatibility, interdependence, and support between commercial and mixed us centers and the surrounding residential neighborhoods; and Policy T-23: Encourage pedestrian friendly design features such as sidewalks, street trees, on street parking, public spaces, gardens, outdoor furniture, art and interesting architectural detail. 2.The design is compatible with the immediate environment of the site. This finding can be made in the affirmative in that the proposed design maintains the existing building and enhances the existing street frontages and building facades. The improvements revitalize the existing legal non-complying facility and modernize a significant building in the downtown 3.The design is appropriate to the function of the project. This finding can be made in the affirmative in that the improvements are consistent with modern commercial buildings and creates an attractive building entrance and active inviting outdoor seating area. 4.In areas considered by the board as having a unified design character or historical character, the design is compatible with such character. This finding can be made in the affirmative in that the project is generally consistent with the Downtown Urban Design Guide. 5.The design promotes harmonious transitions in scale and character in areas between different designated land uses.This finding is not applicable to this project. 4 6.The design is compatible with approved improvements both on and off the site. This finding can be made in the affirmative in that the project is compatible with the surrounding office and retail uses of the downtown commercial area. 7.The planning and siting of the various functions and buildings on the site create an internal sense of order and provide a desirable environment for occupants, visitors and the general community. This finding can be made in the affirmative in that the location of the lobby and restaurant uses are convenient and orderly. 8.The amount and arrangement of open space are appropriate to the design and the function of the structures. This finding can be made in the affirmative in that the hotel provides private open spaces (balconies) for each of the guest rooms and some communal balcony space. 9.Sufficient ancillary functions are provided to support the main functions of the project and the same are compatible with the project’s design concept. This finding can be made in the affirmative in that the placement of the garbage is compatible with the project’s design. 10.Access to the property and circulation thereon are safe and convenient for pedestrians, cyclists and vehicles. This finding can be made in the affirmative in that the existing building is easily approachable by all modes of transportation and the circulation is safe. 11.Natural features are appropriately preserved and integrated with the project. This finding is not applicable to this project. 12.The materials, textures, colors and details of construction and plant material are appropriate expression to the design and function. This finding can be made in the affirmative, see Findings 2, 3, and 4 above. 13.The landscape design concept for the site, as shown by the relationship of plant masses, open space, scale, plant forms and foliage textures and colors create a desirable and functional environment. 5 This finding can be made in the affirmative in that the project includes planters along the front façade to enhance the building. 14.Plant material is suitable and adaptable to the site, capable of being properly maintained on the site, and is of a variety which would tend to be drought-resistant to reduce consumption of water in its installation and maintenance. This finding can be made in the affirmative in that the number of planters is minimal and will be planted with low maintenance plant material. 15.The project exhibits green building and sustainable design that is energy efficient, water conserving, durable and nontoxic, with high-quality spaces and high recycled content materials. This finding can be made in the affirmative in that the project is seeking LEED Silver status with the incorporation of various elements such as solar hot water and PV panels, use of reclaimed wood, and use of materials with recycled content. Additional details are provided in the project’s LEED Checklist that is included in Attachment E of the staff report. 16.The design is consistent and compatible with the purpose of architectural review as set forth in subsection 18.76.020(a). This finding can be made in the affirmative in that the project design, as conditioned, promotes visual environments that are of high aesthetic quality and variety. SECTION 4.Architectural Review Approval Granted. Architectural Review Approval is hereby granted for the Project by the City Council pursuant to Chapter 18.77 of the Palo Alto Municipal Code. SECTION 5.Design Enhancement Exception (DEE) Findings. 1.There are exceptional or extraordinary circumstances or conditions applicable to the property or site improvements involved that do not apply generally to property in the same zone district. This finding can be made in the affirmative in that the existing outdated facility is a legal non-complying eight story building that is being renovated for a hotel use. Hotel uses are fairly limited within the city and most hotels are designed to provide 6 some type of cover at the main entrance of the building to shelter guests at arrival and departure. 2.The granting of the application will enhance the appearance of the site or structure, or improve the neighborhood character of the project and preserve an existing or proposed architectural style, in a manner which would not otherwise be accomplished through strict application of the minimum requirements of Title 18 and the standards for review set forth in Chapter 16.48 of the Palo Alto Municipal Code. This finding can be made in the affirmative in that the entrance canopy is supported by the Pedestrian Overlay zoning, Downtown Urban Design Guide, and the Context-Based Design. The entrance canopy would provide pedestrian shelter, emphasize the building entrance, and add pedestrian scale to a very tall building. The new roof overhang is an integral part of the proposed design that ties the facades together and gives the building a stronger and more balanced appearance on the Hamilton side. 3.The exception is related to a minor architectural feature or site improvement that will not be detrimental or injurious to property or improvements in the vicinity and will not be detrimental to the public health, safety, general welfare or convenience. This finding can be made in the affirmative in that the project will be constructed in accordance with all code requirements of the City of Palo Alto and will be neither detrimental nor injurious to surrounding properties, public health, safety, general welfare, or convenience. The new façade treatments with the entrance canopy and roof overhang will enhance the site and add value to the site and immediate vicinity. SECTION 6.Design Enhancement Exception Granted. Design Enhancement Exception approval, pursuant to section 18.76.050 of the Palo Alto Municipal Code,is hereby granted for: 1.Exceed Building Length: The existing building is 102 feet long (Hamilton frontage) with the primary mass of the building being 100 feet with an additional two foot protrusion for the stairwell landings for floors three through seven. The project includes a new entrance canopy on Emerson Street that projects eight feet two inches from the face of the building (property line) into the public right-of-way. This entrance canopy would add six feet two inches to the base length of the building; and 2.Expand Building Roofline: The base of the building is 75.5 feet wide (Emerson frontage), while the existing roof line is 7 58.5 feet wide, due to the inset of the eighth floor. The new roof canopy would extend the roof line 12 feet to the Hamilton Avenue property line, and one foot toward the interior side property line, for a new dimension of 71.5 feet. The existing height of the building at 76 feet would remain unchanged with the proposed renovations.The granting of this Design Enhancement Exception does not constitute a variance, and shall be effective only to the extent that the approved plans are not changed in a manner that affects the granted exception. SECTION 7.Sign Exception Findings. 1.There are exceptional or extraordinary circumstances or conditions applicable to the property involved that do not apply generally to property in the same district. This finding can be made in the affirmative in that the existing facility is a legal non-complying eight story building and the scale of the building is much larger than most in the downtown. Because of the unique tall height and mass of the building, providing a proportionately scaled large sign for the site would be appropriate. The large projecting sign fits the composition of the large building. Placing the projecting sign at the upper elevations of the building allows patrons to find the site easier, from both the downtown and from the train. The placement of the sign above the entrance canopy provides additional visibility for the primary building entrance that is located on the subordinate less visible Emerson street frontage. 2.The granting of the application is necessary for the preservation and enjoyment of a substantial property right of the applicant and to prevent unreasonable property loss or unnecessary hardships. The placement of a larger projecting sign at a more elevated position and a signage above the entrance canopy would benefit the hotel and enhance the business owner’s investment at the site. 3.The granting of the application will not be detrimental or injurious to property or improvements in the vicinity and will not be detrimental to the public health, safety, general welfare or convenience. The project will be constructed in accordance with all code requirements of the City of Palo Alto and will be neither detrimental nor injurious to surrounding properties, public health, safety, general welfare, or convenience. The new signage in connection with the complete façade renovation of the building 8 creates a well balanced and aesthetically pleasing project that compliments the downtown SECTION 8.Sign Exception Approval Granted. Sign Exception approval,pursuant to section 16.20.040 of the Palo Alto Municipal Code,is hereby granted for: 1.Canopy Sign: The plans show the placement of hotel signage over the new entrance canopy on Emerson Street. This placement, on top of the canopy, is not permitted based on PAMC sections 16.20.100(c) and 16.20.130(b). 2.Projecting Sign: The proposed Hamilton Avenue hotel signage has been integrated into the building as an architectural feature and is determined to be a large projecting sign, under the roof canopy and supported by a 10-foot tall post at the base. PAMC’s Sign Code section 16.20.140 allows Projecting Sign to be up to three square feet and limited to 12 feet in height. The proposed sign is 76 feet tall and 412.5 sf. The proposed sign is 6 foot three inches wide and 34 inches thick, with text on both sides. The text of the sign is proposed at the uppers levels, extending from the 5th through 8th floors on the interior side facing the hotel, and from the 6th through 8th floors on the outside. SECTION 9.Plan Approval. The plans submitted for Building Permit shall be in substantial conformance with those plans prepared by Steinberg Architects titled Casa Olga Boutique Hotel, consisting of 36 pages, and received May 24, 2012, except as modified to incorporate the conditions of approval in Section 10. A copy of these plans is on file in the Department of Planning and Community Development. SECTION 10.Conditions of Approval. Planning Division 1.The project shall be in substantial conformance with the approved plans and related documents received May 24, 2012, except as modified to incorporate these conditions of approval. 2.The Conditions of Approval document shall be printed on all plans submitted for building permits related to this project. 3.The final signage details for the hotel shall return to the ARB for review and approval. 9 4.The project approval does not include the restaurant signage; that shall be submitted separately for Architectural Review at a future date. 5.The details for the hardscape plan, balcony railing, and roof mechanical screen shall be submitted to the ARB Subcommittee for review and approval prior to the project’s building permit issuance. 6.The drainage plans for the outdoor planters shall be submitted to staff for review and approval. 7.The property owner shall be responsible to pay the required in-lieu parking fee for the five vehicles parking spaces that are to be removed as part of the project prior to occupancy of the building. 8.The hotel shall be required to allow and encourage guests to park their bicycles in their hotel rooms to provide the adequate bike parking for the site. 9.If in the future the City determines that eight short term bike spaces are not sufficient for the uses of the site, the applicant may be required to provide additional bike spaces to address the deficiency. 10.The property owner shall be responsible for the regular maintenance and upkeep of the four non-standard bike racks placed within the city right of way. 11.The project’s associated valet program shall be submitted for review and approval by the Director of Planning, as well as the Police Department. 12.The project is subject to the Palo Alto Tier 1 Calgreen Checklist for compliance with Green Building. 13.The project shall provide an enclosed trash area that accommodates three 4-yard bins; this revision shall be included in the plans submitted for building permits. 14.The project approval shall be valid for a period of one year from the original date of approval. In the event a building permit(s), if applicable, is not secured for the project within the time limit specified above, the ARB approval shall expire and be of no further force or effect. Application for extension of this entitlement may be made prior to the one year expiration. 10 Water -Gas -Wastewater Engineering 15.Our utility maps show a large concrete encased electric duct bank on Hamilton between the building and sewer main. The duct bank may interfere with the new sewer lateral shown on sheet C05. The existing electric duct bank needs to be investigated by the applicant prior to creating the final utility plan. 16.The applicant shall submit a completed water-gas-wastewater service connection application -load sheet for City of Palo Alto Utilities. The applicant must provide all the information requested for utility service demands (water in fixture units/g.p.m., gas in b.t.u.p.h, and sewer in fixture units/g.p.d.). The applicant shall provide the existing (prior) loads, the new loads, and the combined/total loads (the new loads plus any existing loads to remain). 17.The applicant shall submit improvement plans for any utility construction. The plans must show the size and location of all underground utilities within the development and the public right of way including meters, backflow preventers, fire service requirements, sewer mains, sewer cleanouts, sewer lift stations and any other required utilities. 18.The applicant must show on the site plan any auxiliary water supply, (i.e. water well, gray water, recycled water, rain catchment, water storage tank, etc). 19.The applicant shall be responsible for installing and upgrading the existing utility mains and/or services as necessary to handle anticipated peak loads. This responsibility includes all costs associated with the design and construction for the installation/upgrade of the utility mains and/or services. 20.An approved reduced pressure principle assembly (RPPA backflow preventer device) is required for all existing and new water connections from Palo Alto Utilities to comply with requirements of California administrative code, title 17, sections 7583 through 7605 inclusive. The RPPA shall be installed on the owner's property and directly behind the water meter within 5 feet of the property line. RPPA’s for domestic service shall be lead free. Show the location of the RPPA on the plans. 21.An approved reduced pressure detector assembly is required for the existing or new water connection for the fire system to comply with requirements of California administrative 11 code, title 17, sections 7583 through 7605 inclusive (a double detector assembly may be allowed for existing fire sprinkler systems upon the CPAU’s approval). reduced pressure detector assemblies shall be installed on the owner's property adjacent to the property line, within 5’ of the property line. Show the location of the reduced pressure detector assembly on the plans. 22.All backflow preventer devices shall be approved by the WGW engineering division. Inspection by the utilities cross connection inspector is required for the supply pipe between the meter and the assembly. 23.Existing wastewater laterals that are not plastic (ABS, PVC, or PE) shall be replaced at the applicant’s expense. 24.The applicant shall pay the capacity fees and connection fees associated with any new utility service/s or added demand on existing services. The approved relocation of services, meters, hydrants, or other facilities will be performed at the cost of the person/entity requesting the relocation. 25.Each place of business shall have its own water and gas meter shown on the plans. Each parcel shall have its own water service, gas service and sewer lateral connection shown on the plans. 26.Utility vaults, transformers, utility cabinets, concrete bases, or other structures can not be placed over existing water, gas or wastewater mains/services. Maintain 1’ horizontal clear separation from the vault/cabinet/concrete base to existing utilities as found in the field. If there is a conflict with existing utilities, Cabinets/vaults/bases shall be relocated from the plan location as needed to meet field conditions. Trees may not be planted within 10 feet of existing water, gas or wastewater mains/services or meters. New water, gas or wastewater services/meters may not be installed within 10’ or existing trees. Maintain 10’ between new trees and new water, gas and wastewater services/mains/meters. 27.All utility installations shall be in accordance with the City of Palo Alto utility standards for water, gas & wastewater. 12 Fire 28.Install a NFPA 13 fire sprinkler, NPFA 14 standpipe and NFPA 72 fire alarm system. 29.Upgrade public fire hydrant # 1179 located at the corner of Emerson St & Hamilton Ave and public fire hydrant # 1180 located at the corner of Hamilton Ave & High St to a Clow model 76. 30.The building is to be evaluated for public safety radio coverage per 2010 CA Fire Code section 510.If the public safety radio coverage is inadequate a radio amplifier system is to be installed. Public Works Engineering 31.SIDEWALK, CURB & GUTTER: As part of this project, the applicant must replace those portions of the existing sidewalks, curbs, gutters or driveway approaches in the public right-of-way along the frontage(s) of the property that are broken, badly cracked, displaced, or non-standard, and must remove any unpermitted pavement in the planter strip. Contact Public Works’ inspector at 650-496-6929 to arrange a site visit so the inspector can determine the extent of replacement work. The site plan submitted with the building permit plan set must show the extent of the replacement work or include a note that Public Works’ inspector has determined no work is required. The plan must note that any work in the right-of-way must be done per Public Works’ standards by a licensed contractor who must first obtain a Street Work Permit from Public Works at the Development Center. 32.NEWSRACKS & BIKE RACKS: Currently, there are 3 newsracks adjacent to the building on Emerson Street. Public Works does not approve the removal of the newsracks nor the installation of the bike racks near this location. If specific activities require it, the newsracks may be relocated temporarily but must be placed back in their original location prior to final occupancy and sign-off of the Building Permit. Prior to temporarily relocating the newsracks, the applicant must work with the Public Works department to find an appropriate location and adequately notify the distributors in writing of the new location. The notification shall include contact information for the contractor relocating their property, a sketch to show the new location, and duration of this relocation. The applicant shall also send a second notification letter to the distributors when placing the newsracks back to their original location. If the applicant would like to requests 13 the installation of bike racks along both frontages of the building, the contractor must contact the Transportation Division at 650-329-2520 to discuss if there is an appropriate bike rack location at this site and to determine the type/model that can be installed per City Standards. 33.DECORATIVE SIDEWALK TREATMENT: The corner of Hamilton Avenue and Emerson Street lies within the designated area where we allow special paving treatments. As such, the material and installation shall comply with the City of Palo Alto’s standards which include brick, concrete or interlocking pavers in select colors and patterns. The City recommends stamped concrete in one of three Davis colors: Light Gray, Roadside Brown, or Sunset Rose. 34.GRADING & DRAINAGE PLAN: The plan (sheet C03) shows 2 low points along the gutter flow-line where no drains exist. Revise the proposed gutter grades to provide flow along the entire property frontage (from Hamilton Avenue around the corner to Emerson Street). 35.STREET RESURFACING: Public Works will determine the condition of the street surface on the frontages on the project at the completion of construction and decide what type of street resurfacing, if any, will be required prior to acceptance of the project. 36.STREET TREES: The applicant may be required to replace existing and/or add new street trees in the public right-of- way along the property’s frontage(s). Call the Public Works’ arborist at 650-496-5953 to arrange a site visit so he can determine what street tree work, if any, will be required for this project. The site plan submitted with the building permit plan set must show the street tree work that the arborist has determined, including the tree species, size, location, staking and irrigation requirements, or include a note that Public Works’ arborist has determined no street tree work is required. The plan must note that in order to do street tree work, the applicant must first obtain a Permit for Street Tree Work in the Public Right-of-Way from Public Works’ arborist (650-496-5953). The following comments are provided to assist the applicant at the building permit phase. You can obtain various plan set details, forms and guidelines from Public Works at the City's Development Center (285 Hamilton Avenue) or on Public Works’ website: www.cityofpaloalto.org/depts/pwd/forms_permits. Include in plans submitted for a building permit: 14 37.STORM WATER POLLUTION PREVENTION: The City's full-sized "Pollution Prevention -It's Part of the Plan" sheet must be included in the plan set. Copies are available from Public Works at the Development Center or on our website. 38.STREET TREES: Show all existing street trees in the public right-of-way. Any removal, relocation or planting of street trees; or excavation, trenching or pavement within 10 feet of street trees must be approved by Public Works' arborist (phone: 650-496-5953). This approval shall appear on the plans. Show construction protection of the trees per City requirements. 39.WORK IN THE RIGHT-OF-WAY: The plans must clearly indicate any work that is proposed in the public right-of-way, such as sidewalk replacement, driveway approach, or utility laterals. The plans must include notes that the work must be done per City standards and that the contractor performing this work must first obtain a Street Work Permit from Public Works at the Development Center. If a new driveway is in a different location than the existing driveway, then the sidewalk associated with the new driveway must be replaced with a thickened (6” thick instead of the standard 4” thick) section. Additionally, curb cuts and driveway approaches for abandoned driveways must be replaced with new curb, gutter and planter strip. 40.SIDEWALK ENCROACHMENT: Add a note to the site plan that says, “The contractor using the city sidewalk to work on an adjacent private building must do so in a manner that is safe for pedestrians using the sidewalk. Pedestrian protection must be provided per the 2010 California Building Code Chapter 33 requirements. If the height of construction is 8 feet or less, the contractor must place construction railings sufficient to direct pedestrians around construction areas. If the height of construction is more than 8 feet, the contractor must obtain an encroachment permit from Public Works at the Development Center in order to provide a barrier and covered walkway or to close the sidewalk.” 41.SIGNS: If the installation of the signs will require the installer to occupy the public sidewalk, add a note to the plans that says, “Installation of the signs must be done in a manner that is safe for pedestrians using the public sidewalk. The work area must be coned or taped off while still leaving at least 5 feet for pedestrian travel. Otherwise, he must obtain an encroachment permit from Public Works to close the sidewalk.” 15 42.LOGISTICS PLAN: The contractor must submit a logistics plan to the Public Works Department prior to commencing work that addresses all impacts to the City’s right-of-way, including, but not limited to: pedestrian control, traffic control, truck routes, material deliveries, contractor’s parking, concrete pours, crane lifts, work hours, noise control, dust control, storm water pollution prevention, contractor’s contact, noticing of affected businesses, and schedule of work. The plan will be attached to a street work permit. Public Works Department Water Quality 43.Grease Control Device (GCD) Requirements, PAMC Section 16.09.075 & cited Bldg/Plumbing Codes: 1. The plans shall specify the manufacturer details and installation details of all proposed GCDs. (CBC 1009.2) 2. GCD(s) shall be sized in accordance with the 2007 California Plumbing Code. 3. GCD(s) shall be installed with a minimum capacity of 500 gallons. 4. GCD sizing calculations shall be included on the plans. See a sizing calculation example below. 5. The size of all GCDs installed shall be equal to or larger than what is specified on the plans. 6. GCDs larger than 50 gallons (100 pounds) shall not be installed in food preparation and storage areas. Santa Clara County Department of Environmental Health prefers GCDs to be installed outside. GCDs shall be installed such that all access points or manholes are readily accessible for inspection, cleaning and removal of all contents. GCDs located outdoors shall be installed in such a manner so as to exclude the entrance of surface and stormwater. (CPC 1009.5) 7. All large, in-ground interceptors shall have a minimum of three manholes to allow visibility of each inlet piping, baffle (divider) wall, baffle piping and outlet piping. The plans shall clearly indicate the number of proposed manholes on the GCD. The Environmental Compliance Division of Public Works Department may authorize variances which allow GCDs with less than three manholes due to manufacture available options or adequate visibility. 8. Sample boxes shall be installed downstream of all GCDs. 9. All GCDs shall be fitted with relief vent(s). (CPC 1002.2 & 1004) 16 10. GCD(s) installed in vehicle traffic areas shall be rated and indicated on plans. 44.Drainage Fixture Requirements, PAMC Section 16.09.075 & cited Bldg/Plumbing Codes 11. To ensure all FSE drainage fixtures are connected to the correct drain lines, each drainage fixture shall be clearly labeled on the plans. A list of all fixtures and their discharge connection, i.e. sanitary sewer or grease waste line, shall be included on the plans. 12. A list indicating all connections to each proposed GCD shall be included on the plans. This can be incorporated into the sizing calculation. 13. All grease generating drainage fixtures shall connect to a GCD. These include but are not limited to: a. Pre-rinse (scullery) sinks b. Three compartment sinks (pot sinks) c. Drainage fixtures in dishwashing room except for dishwashers shall connect to a GCD d. Examples: trough drains (small drains prior to entering a dishwasher), small drains on busing counters adjacent to pre-rinse sinks or silverware soaking sinks e. Floor drains in dishwashing area and kitchens f. Prep sinks g. Mop (janitor) sinks h. Outside areas designated for equipment washing shall be covered and any drains contained therein shall connect to a GCD. i. Drains in trash/recycling enclosures j. Wok stoves, rotisserie ovens/broilers or other grease generating cooking equipment with drip lines k. Kettles and tilt/braising pans and associated floor drains/sinks 14. The connection of any high temperature discharge lines and non-grease generating drainage fixtures to a GCD is prohibited. The following shall not be connected to a GCD: a. Dishwashers b. Steamers c. Pasta cookers d. Hot lines from buffet counters and kitchens e. Hand sinks f. Ice machine drip lines g. Soda machine drip lines h. Drainage lines in bar areas 17 15. No garbage disposers (grinders) shall be installed in a FSE. (PAMC 16.09.075(d)). 16. Plumbing lines shall not be installed above any cooking, food preparation and storage areas. 17. Each drainage fixture discharging into a GCD shall be individually trapped and vented. (CPC 1014.5) 45.Covered Dumpsters, Recycling and Tallow Bin Areas PAMC, 16.09.075(q)(2): a.Newly constructed and remodeled buildings to house FSEs shall include a covered area for all dumpsters, bins, carts or container used for the collection of trash, recycling, food scraps and waste cooking fats, oils and grease (FOG) or tallow. b.The area shall be designed and shown on plans to prevent water run-on and run-off from the area. c.Drains that are installed within the enclosure for recycle and waste bins, dumpsters and tallow bins serving FSEs are optional. Any such drain installed shall be connected to a GCD. d.If tallow is to be stored outside then an adequately sized, segregated space for a tallow bin shall be included in the covered area. 46.Large Item Cleaning Sink, PAMC 16.09.075(m)(2)(B): FSEs shall have a sink or other area drain which is connected to a GCD and large enough for cleaning the largest kitchen equipment such as floor mats, containers, carts, etc. Recommendation: Generally, sinks or cleaning areas larger than a typical mop/janitor sink are more useful. SECTION 11.Indemnity. To the extent permitted by law, the Applicant shall indemnify and hold harmless the City, its City Council, its officers, employees and agents (the “indemnified parties”)from and against any claim, action, or proceeding brought by a third party against the indemnified parties and the applicant to attack, set aside or void, any permit or approval authorized hereby for the Project, including (without limitation) reimbursing the City its actual attorneys fees and costs incurred in defense of the litigation. The City may, in its sole discretion, elect to defend any such action with attorneys of its own choice. SECTION 12.Term of Approval.Architectural Review Approval. The approval shall be valid for one year from the original date of approval, pursuant to Palo Alto Municipal Code Section 18.77.090. 18 PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST:APPROVED: _____________________________________________________ City Clerk Director of Planning and Community Environment APPROVED AS TO FORM: ___________________________ Senior Asst. City Attorney PLANS AND DRAWINGS REFERENCED: Those plans prepared by prepared by Steinberg Architects titled Casa Olga Boutique Hotel, consisting of 36 pages, and received May 24, 2012. 116 NEW MONTGOMERY STREET, SUITE 500 SAN FRANCISCO, CA 94105 415-284-1544 FAX 415-284-1554 www.nelsonnygaard.com M E M O R A N D U M To:Sandy Sloan and Chip Conley From:Brian Canepa and Francesca Napolitan Date:May 15, 2012 Subject:Final Parking Demand Analysis and TDM Program INTRODUCTION The Joie de Vivre hotel is a proposed four star upscale boutique hotel, designed to serve the needs of domestic and international business travelers, Stanford associates, as well as those travelling for leisure. The proximity and allure of downtown Palo Alto may also attract customers from throughout the Bay Area looking for an easily accessible weekend getaway. The new hotel will be located at 180 Hamilton Avenue in downtown Palo Alto and will contain 86 rooms, two-thirds of which will be a one-bed guest room and one-third will be two-bed guest room. A 1,300 square foot restaurant serving breakfast, lunch, and dinner will be located on the ground floor, serving both guests as well as visitors to downtown Palo Alto. The location of the proposed hotel is well served by numerous transportation options making it attractive for both guests and employees to access the hotel via public transportation. The hotel will be located three blocks from the Palo Alto Caltrain Station which provides service to San Francisco, San Mateo, and Santa Clara counties as well as six Marguerite shuttle routes run by Stanford University that provide access to various parts of the university campus. In addition, the hotel is within a short walking distance of Santa Clara Valley Transportation Authority bus routes 22, 35, 522, and the Dumbarton Express as well as SamTrans bus routes, 280, 281, 297, 390, 397, and the KX express bus service. In addition, to further encourage the use of alternative modes of transportation, the hotel will offer a number of services such as a free loaner bike program for guests, transit passes for employees, and a guaranteed ride home program for employees.Many of these programs and services particularly appeal to the sophisticated business travelers anticipated to stay at the Joie de Vivre hotel who wish to maximize their productivity. This memorandum details the transportation demand management (TDM) and parking measures that the Joie de Vivre hotel in Palo Alto will implement in order to help mitigate the potential parking impacts of this development by reducing both employee and visitor parking demand and that will take advantage of the hotel’s proximity to the Palo Alto Caltrain station, other public transportation options, and the Stanford University campus. The memo is divided into two sections; the first section consists of the parking demand analysis while the second section describes the proposed guest and employee TDM and parking measures. Attachment E Parking Demand Analysis and TDM Program | Revised Draft Joie de Vivre Hotel Nelson\Nygaard Consulting Associates Inc. | 2 PARKING DEMAND ANALYSIS A parking demand analysis was undertaken in order to determine the potential parking impacts generated by the proposed Joie de Vivre hotel. This section describes the methodology that was used, the projected parking demand generated by the hotel and restaurant, and the impact that the guest and employee TDM program will have on reducing parking demand. Methodology In order to determine the parking demand that would be generated by hotel guests, employees, and restaurant patrons, a number of assumptions were made regarding the hotel, restaurant, and associated guests and employees. These assumptions were informed by the client’s experience with other hotels and parking demand and occupancy information from the Institute of Transportation Engineers Parking Generation Manual, 4th Edition. It is important to note that these assumptions are for weekdays only, as it is estimated that weekday occupancy will be higher than weekend occupancy. Thus the analysis is focused on weekdays which will generate the highest parking demand. Listed below are the relevant assumptions and data points: §Hotel Guests -Average weekday occupancy of 1.25 per room -75% occupancy on an average day -25% of guests drive to the hotel §Restaurant Guests -Breakfast: 50 guests (75% hotel guests, 25% visitors) -Lunch: 75 guests (20% hotel guests, 20% driving visitors, 60% walking downtown workers) -Dinner: 40 guests (35% hotel guests, 32.5% driving visitors, 32.5% walking downtown workers) §Employees -40 to 50 full time employees -Weekday employment o 20 employees at 9:00 am o 25 employees at 3:00 pm o 20 employees at 6:00 pm o 12 employees at 9:00 pm -Weekend employment is 90% of weekday employment -25% of employees drive to work1 §Parking Occupancy for the Hotel 2 -9:00 am, 96% of spaces occupied -12:00 pm, 60% of spaces occupied 1 Although there is a drive alone rate of 76% for all Palo Alto employees (2000 U.S. Census), Joie de Vivre reports that its hourly paid workers typically drive alone at one-third that rate. 2 Parking occupancy numbers were obtained from the Institute of Transportation Engineers Parking Generation Manual, 4th Edition, using ITE Land Use Code 310 (Hotel). Without meeting or convention space in the hotel, guest parking occupancy in the middle of the day is anticipated to be much lower. Parking Demand Analysis and TDM Program | Revised Draft Joie de Vivre Hotel Nelson\Nygaard Consulting Associates Inc. | 3 -6:00 pm, 62% of spaces occupied The drive alone rates for hotel guests and employees are based on Joie de Vivre’s observed data from hotels in urban settings where access by alternative modes is higher than traditional stand- alone suburban sites. Figure 1 shows the driving rates for various hotels in the Bay Area. Figure 1 Guest and Employee Drive Alone Rates Hotel Location Guest Drive Rate Employee Drive Alone Rate Hotel Keen Palo Alto 1%N/A Garden Court Palo Alto 35%N/A Palo Alto Average 18%N/A Hotel Avante Mountain View 50%48% Hotel Vitale San Francisco 10%8% Galleria Park Hotel San Francisco 10%7% Moorpark San Jose 65%70% Total Average 28.5%33.3% It should be noted that the hotels listed in Figure 1 are located in a variety of settings, each with different available travel options. For example, hotels in San Francisco with the most transit access and walking options experience the lowest rates of driving while those in San Jose with fewer alternative mode options face the highest rates of driving. The average guest rate of driving for hotels listed in Figure 1 in downtown Palo Alto is 18%. Although the Palo Alto employee drive alone rate is unavailable, if the same average guest driving ratio between hotels in Palo Alto and all hotels (18%/28.5%) were applied to employees, it is anticipated that Palo Alto employee drive alone rate would be roughly 21%. Given these figures, the analysis of demand for Joie de Vivre conservatively assumes both a guest and employee driving rate of 25%. Taking these assumptions, weekday parking demand is calculated by time of day (morning, midday, and evening) by group type (employees, hotel guests, restaurant guests). Parking demands were calculated using the following formulas: Hotel Guests §Number of rooms (86) x average occupancy rate (75%) x % drive (25%) x ITE occupancy (varies by time of day) Employees §Number of employees (varies by time of day) x drive alone rate (25%) Restaurant Patrons §Number of restaurant guests (varies by time of day) x % of restaurant guests that are visitors not hotel guests (varies by time of day) Parking Demand Analysis and TDM Program | Revised Draft Joie de Vivre Hotel Nelson\Nygaard Consulting Associates Inc. | 4 Analysis Using the methodology described above, the parking demand was calculated by group and time of day. As shown in Figure 2 the maximum total parking demand associated with the hotel occurs in the morning, with a parking demand of 33 spaces. Figure 2 Hotel Parking Demand Morning (9:00 am)Noon Evening (6:00 pm) Hotel Guests 15 10 10 Restaurant 13 15 13 Employees 5 6 5 Total 33 31 28 Figure 3 below compares the maximum total parking demand calculated as part of this analysis to the number of parking spaces required under City Code and to the parking demand calculated using the Institute of Transportation Engineers Parking Generation Manual, 4th Edition. Figure 3 Weekday Parking Demand Compared with City Code Requirements and ITE Parking Demand Rates Local Data City Code3 ITE Parking Demand4 Hotel 15 86/195 77 Restaurant 13 5 14 Employees 5 NA NA Total 33 91/200 91 Figure 3 shows that both the City Code and ITE analysis result in significantly higher parking demands than the analysis using local data. The primary reason for this discrepancy is likely due to the suburban nature of Palo Alto’s parking requirements, the use of ITE data that is largely drawn from sites with little transit access, a poor walking environment, free and abundant parking, and hotels with conference facilities.5 Given the mix of uses around the hotel and its proximity to transit and major destinations such as Stanford, local data represents a more accurate estimate of parking demand. Joie de Vivre will be implementing a number of transportation demand management and parking programs which will help reduce the parking demand generated by employees and guests (for a detailed description of these programs please refer to the second section of this memo). Figure 4 below shows the percentage reduction in parking demand that is projected based on the proposed guest and employee TDM programs. It should be noted that no reduction in restaurant parking 3 The City Code lists two rates for hotel uses. The general Zoning Code requires one space per hotel room, which results in a requirement of 86 spaces. In the Downtown Parking Assessment District where this property is located, all uses pay for one parking space for every 250 square feet of built space. The Joie de Vivre property pays for 195 spaces and will pay in-lieu fees for five additional on-site spaces to be removed. 4 For this analysis ITE Land Use Code 310 Hotel and ITE Land Use Code 931 Quality Restaurant for the weekday peak period were used. Demand estimate assumes full occupancy of the hotel. 5 Some hotels observed by ITE also contain conference space, which increases its estimates of parking demand. Parking Demand Analysis and TDM Program | Revised Draft Joie de Vivre Hotel Nelson\Nygaard Consulting Associates Inc. | 5 demand is projected as there are no TDM programs targeted at restaurant patrons. However, it is anticipated that many of the restaurant patrons will be hotel guests who will not driving. Figure 4 Mitigated Parking Demand with TDM Currently Proposed TDM Measures % Reduction AM Demand with TDM Noon Demand with TDM Evening Demand with TDM Guest Program §Not reimbursing guests for parking §Bicycle program §Transportation information 15%13 8 8 Employee Program §Bicycle parking §Parking cash-out §Transit passes §Pre-tax transit benefits §Carpool program §Guaranteed Ride Home program §Welcome packets §Transportation Coordinator 20%4 5 4 Restaurant Parking Demand 0%13 15 13 Total Parking Demand 30 28 25 Total % Reduction from Baseline Demand 10%9%9% TRANSPORTATION DEMAND MANAGEMENT (TDM) PROGRAM The following section describes the proposed guest and employee TDM program. Guest TDM Programs Bike Share Program Bike share systems provide a network of public bicycles from self-service bike share stations located around town.Similar to carsharing, members can check out a bicycle, ride to their destination and return the bicycle to any bike share pod in the system.For convenience, bike share systems typically provide real time information on the status of available bikes and empty docks through the web, kiosk and mobile application.Users will also have access to any bike share bicycle in the system including those outside of Santa Clara County. Parking Demand Analysis and TDM Program | Revised Draft Joie de Vivre Hotel Nelson\Nygaard Consulting Associates Inc. | 6 Santa Clara Valley Transportation Authority, in partnership with the Bay Area Air Quality Management District (BAAQMD) will be launching a pilot bike share program to serve the Bay Area that will open in July, 2012.The pilot program will provide 1,000 bicycles and approximately 100 bike share stations along the Caltrain corridor in San Jose, Mountain View, Palo Alto, Redwood City and San Francisco.Of these, 400 bikes will be available at the Caltrain stations and downtown areas in San Jose, Mountain View and Palo Alto.In Santa Clara County, the Palo Alto, Mt. View and San Jose Diridon Caltrain transit centers will serve as the main bike share hubs with the largest number of bikes and docks.Within three miles of the transit centers, multiple bike share pod stations will be placed at high activity areas such as downtown, universities, shopping centers, city halls and major employment centers.Within the vicinity of Joie de Vivre Hotel, bike share pods will be located at City Hall and University Avenue at Emerson Street. By covering the access costs to the bike share program, Joie de Vivre Hotel will provide guests with a non-auto mode option for exploring Palo Alto enabling guests to feel more comfortable taking public transit or a car service to the hotel, knowing that they will have a way to get around once they arrive. In addition, the hotel should provide guests with bicycle helmets and locks free of charge to further encourage the use of bicycles. Transportation Information Providing guests with information regarding transportation options to the hotel can help encourage guests to consider non-auto options. This information should be emailed or mailed to guests as part of their registration confirmation process providing guests with the information early on to assist in their logistics planning for arrival to the hotel. Information on public transit services, including Caltrain and the Stanford Marguerite shuttle, as well as contacts for town car services, and Zipcar should be included to appeal to the differing needs of various types of guests. In addition, an on-site transportation board including bicycle maps, transit routes and schedules, and contact numbers for taxi and town car services should be included in the reception area to assist guests. Employee TDM Programs The following section describes the proposed employee TDM programs for the Joie de Vivre hotel. Bicycle Parking The first floor of the hotel will house a storage room to accommodate three bicycles where employees will be able securely store their bicycles while at work. Providing secure long-term parking for employees is a critical component of encouraging employees to bike to work as the lack of secure parking is often cited by employees as a deterrent. In addition, the hotel will provide hotel-maintained racks outside along the sidewalk space of the hotel for up to ten bicycles for visitors or other short-term users. Parking Cash-Out Many North American employers provide free or reduced price parking for their employees as a fringe benefit. Under a parking cash-out program, employers are allowed to continue this practice on the condition that they offer the cash value of the parking subsidy to any employee who does not drive to work. Offering employees the option of a “cash out” incentive to use an alternative Parking Demand Analysis and TDM Program | Revised Draft Joie de Vivre Hotel Nelson\Nygaard Consulting Associates Inc. | 7 mode of transportation (transit, bike, walk, or carpool to work) will help to reduce vehicle commute trips and emissions. The cash value of the parking subsidy can be offered in one of three forms: §A transit/vanpool subsidy equal to the value of the parking subsidy (of which up to $230 is tax-free for both employer and employee). §A taxable carpool/walk/bike subsidy equal to the value of the parking subsidy. §Alternately, employees can be given a general “transportation fringe benefit” equal to the market value of an employee parking space, and all employee parking can simply be priced with a daily fee. Parking cash-out is already state law in California, but the current state law only applies to employers with 50 employees or more who lease their parking and whose parking costs can be separated out as a line item on their lease. While this law will likely not apply to Joie de Vivre Hotel, employees who do not drive alone will be offered a $2 per day alternative mode subsidy. Joie de Vivre Hotel will provide the City with a quarterly list of employees participating in the Cash-Out Program as their right to purchase a parking permit for access to permit parking within the downtown should not be allowed. This amount equates to $40 per 20-workday month and is roughly equivalent to the $420 cost for a yearly pass in City of Palo Alto garages. Caltrain Go Pass The Caltrain Go Pass is a type of annual pass purchased by a company for its full-time employees. All employees receive the Go Pass,whether they use it or not. The passes are purchased at a significant discount and provide all employees with free Caltrain travel between all zones, seven days a week. The Go Pass is much more effective at reducing vehicle trips than a transit subsidy, because it provides a transit benefit to all regular, non-regular and potential transit riders. Stanford has managed to increase its Caltrain ridership from 4% to 12% in two years by providing Go Pass to all employees. Currently the Go Pass program costs $10,850 annually accommodating companies with 70 or fewer employees, and $155 annually per full-time employee for companies with more than 70 employees. The passes are non-transferable stickers applied directly to the Employee ID card (prevents cheating, which can otherwise be a problem with transit subsidies). This is a notable savings over the cost of purchasing passes individually as the cost of a monthly pass ranges from $73 to $338 depending on the number of zones of travel it covers. In addition, Caltrain Go Pass customers are eligible to purchase a Monthly Parking Permit through the Caltrain ticket vending machines between the 21st of the month prior to the parking permit being valid until the 9th of the designated month. Only one permit may be purchased per month with the cost for a Monthly Parking Permit set at $40 per month. A Go Pass program for the hotel will result in two benefits. First, employees using the Caltrain Go Pass will be able to take the train to work, thereby encouraging alternative mode use and decreasing parking demand. Secondly, employees using the pass will be able to park their vehicles in the Caltrain lot rather than utilizing City parking facilities. VTA Eco Pass Program The Santa Clara Valley Transit Authority (VTA) offers a discounted transit pass program for employees. Similar to Caltrain’s Go Pass program, the VTA’s Eco Pass is an annual pass that is Parking Demand Analysis and TDM Program | Revised Draft Joie de Vivre Hotel Nelson\Nygaard Consulting Associates Inc. | 8 purchased by a company for its full-time employees. All employees receive the Eco Pass,whether they use it or not. The pass is valid for unlimited use on all VTA bus routes and light rail services. In addition, the VTA offers a Guaranteed Ride Home Program to all employees who use Eco Pass to commute on VTA Bus, Light Rail or Paratransit from home to work. The cost of the taxi ride (excluding optional tip) is paid by the VTA. The cost of the Eco Pass is based on the number of employees and the level of VTA services at a given worksite. Assuming that there will be 50 employees, the total annual cost would $3,600 or $72 per employee for Joie de Vivre. This is a significant discount from the cost of purchasing passes individually as annual adult passes range from $770 to $1,540, depending on the coverage area of the pass. Pre-Tax Transit Benefits Pre-tax programs such as a Commuter Checks program allow employees to pay for transit passes with pre-tax earnings and can help encourage transit use among employees. Commuter Checks are vouchers that can be provided to employees as a substitute for taxable salary. Employees can redeem vouchers for transit passes at sales offices, retail sales outlets, or online to have passes mailed to them or loaded onto a Clipper Card. By substituting taxable salary for a tax-free voucher, employees can save 40% in after-tax value while Joie de Vivre Hotel can save 10% in payroll-related costs. Carpool Program Carpooling is one of the most common and cost-effective alternative modes of transportation and one which commuters can adopt part-time. There are numerous benefits to ridesharing. Carpooling can reduce peak-period vehicle trips and increase commuters’ travel choices. It reduces congestion, road and parking facility costs and pollution emissions. Carpooling tends to have the lowest cost per passenger-mile of any motorized mode of transportation, since it makes use of a vehicle seat that would otherwise be empty. Carpooling also provides consumer financial savings by decreasing fuel and parking costs.If employees agree to carpool, then the owner will reimburse the cost of a parking permit. Carpooling tends to experience economies of scale: as more people use the service the chances of finding a suitable carpool increase significantly. Typical conditions for ridesharing success include: ·Corridors that offer a time and/or cost savings, such as avoiding bridge tolls or taking advantage of carpool lanes. ·Locations far enough from the hotel that driving is a hassle, and where transit service is limited. ·Locations with a significant concentration of commuters within close proximity of each other. ·Commuters with regular schedules particularly staff. ·Discounted carpool parking or priority carpool parking locations Given the relatively small number of employees working at on-site at one time, Joie de Vivre Hotel will provide employees with information on 511.0rg’s free ridematching service which is available online. Parking Demand Analysis and TDM Program | Revised Draft Joie de Vivre Hotel Nelson\Nygaard Consulting Associates Inc. | 9 Guaranteed Ride Home Program Guaranteed Ride Home (GRH) is a program that provides a “back-up” ride to employees who use transit, carpool, biking/walking, or other alternative as their commute mode. For example, if that employee needs to leave work for an emergency, such as a sick child or other unexpected need, they will be redeemed for the cost of taxi ride to get them home.This is an important supportive measure to encourage employees not drive alone to work. Joie de Vivre Hotel will create its own GRH program that will offer free taxi rides home to employees in cases of emergency up to six times per year. Welcome Packet for New Employees Joie de Vivre Hotel will provide new employees with a welcome packet containing relevant transportation information. The packet could include Samtrans, VTA, Caltrain and shuttle schedules and maps, Silicon Valley Bicycle Coalition and Mid-Peninsula Bicycle maps, 511.org ridematching services, information on the guaranteed ride home program, information on the parking-cash-out program, and instructions on how to sign up for pre-tax commuter benefits. Transportation Coordinator Having a part-time staff person dedicated to overseeing and managing the guest and employee TDM program will be very helpful in ensuring the ongoing success of these programs. Duties of the transportation coordinator could include: §Create and distribute employee transportation information welcome packets §Maintain and update the transportation information kiosk board §Provide guests with information on amenities accessible on foot, by bicycle, and by public transit §Distribute Mid-Peninsula Bicycle and Silicon Valley Bicycle Coalition maps §Oversee the guest bicycle loaner program and monitor employee bicycle parking to ensure that there is sufficient space §Administer the parking-cash-out program §Administer the pre-tax employee benefit program §Sell or distribute transit passes §Market the TDM program and transit service §Oversee and manage the Guaranteed Ride Home program §Promote 511.org’s ridematching program TDM Conformance Report In addition to the guest and employee TDM measures described above, Joie de Vivre Hotel will complete an annual TDM Conformance Report for the useful life of the project. This report will provide a summary of Joie de Vivre’s transportation program over the preceding year and intended upcoming changes, including those for both TDM measures and parking management. Parking Demand Analysis and TDM Program | Revised Draft Joie de Vivre Hotel Nelson\Nygaard Consulting Associates Inc. | 10 PARKING MANAGEMENT PROGRAM Parking management, and in particular charging guests and employees for parking is a key component to managing parking demand and to encouraging the use of alternative modes of transportation. Parking pricing is one of the most significant factors affecting motorists’ choice of whether to drive or travel by another mode. Managing on-and off-street parking pricing is also an important strategy for reducing peak-hour trip generation and localized traffic congestion. Research shows that having even a moderate level of parking pricing can considerably impact parking demand. As noted above, the Caltrain Go Pass will offer employees a large inducement to park their vehicles in the Caltrain lot rather than paying for parking in City facilities. Whereas the Caltrain Go Pass parking permit will be subsidized by the hotel, employees wishing to park in downtown parking lots will need to pay their own way. Since the hotel will not have any on-site parking, alternative parking arrangements will need to be made to accommodate guests with off-site parking. Joie de Vivre hotel has two potential options to meet this need. The first is to provide valet parking. The hotel will first attempt to secure lease agreements with nearby private garage owners or operators. Depending on the number of spaces needed, it may be necessary to secure spaces in more than one facility. It is also possible that valet parking may be located in underutilized public lots. This is typically done on a case by case basis. The second option available is to provide guests with daily parking passes that the hotel can purchase ahead of time from the City of Palo Alto for $16 and distribute to guests who can then self-park their cars in a nearby parking garage. It is important to note that for both of these options guests will be required to pay for parking, which in turn will decrease parking demand. As an alternative, some guests may also opt to park on-street. The City of Palo Alto’s color zone parking allows for two hours of free on-street parking from 8 am to 5 pm, Monday through Friday, with no time restrictions outside of those hours. Peter Friedman, general manager of the Hotel Keen, reports that due to the business nature of a majority of weekday guests’ stays, many visitors simply park on-street when arriving in the evening and take their vehicle to their destination in the morning before enforcement hours take effect. Weekend guests, who are more likely to be visiting for leisure, can park on-street all weekend without restriction. CONCLUSION The findings of the parking demand analysis using local data (see Figure 3) estimate a total peak parking demand of 33 spaces in the morning.6 By contrast, the general Zoning Code requires one space per hotel room, resulting in a requirement for 86 spaces. Joie de Vivre, however, is paying for the equivalent of 195 spaces as part of the Downtown Parking Assessment District, plus paying in-lieu fees for five additional on-site spaces to be removed.7 The proposed TDM and parking program will result in an estimated 15% reduction in guest parking demand and 20% in employee parking demand, bringing the total peak parking demand 6 The noon parking demand is estimated to be 31 spaces and the evening parking demand is estimated to be 28 spaces. Guest parking peaks in the morning with a parking demand of 15 spaces whereas parking demand from restaurant guests peaks at noon with 15 spaces. Employee parking demand also peaks at noon with 6 spaces. 7 In the Downtown Parking Assessment District where this property is located, all uses pay for one parking space for every 250 square feet of built space. Parking Demand Analysis and TDM Program | Revised Draft Joie de Vivre Hotel Nelson\Nygaard Consulting Associates Inc. | 11 down to 30 spaces in the morning. The mid-day and evening parking demands will decrease by 9% to 28 and 25 spaces, respectively. Overall, the proposed TDM program will encourage the use of alternative modes of transportation and help reduce guest and employee parking demand to minimize impacts on the business and residential streets in Palo Alto. City of Palo Alto Page 1 Attachment F 1 2 Architectural Review Board Meeting3 Thursday June 7, 20124 REGULAR MEETING -8:30 AM5 City Council Chambers, Civic Center, 1st Floor6 250 Hamilton Avenue7 Palo Alto, CA 943018 ROLL CALL: 9 Board members: Staff Liaison:10 Judith Wasserman (Chair)Russ Reich, Senior Planner11 Clare Malone Prichard (Vice Chair)12 Alexander Lew Staff:13 Lee Lippert Alicia Spotwood, Administrative Associate14 Amy French, Acting Assistant Director15 Margaret Netto, Contract Planner16 Clare Campbell, Planner17 Jodie Gerhardt, Planner18 19 20 180 Hamilton Avenue [12PLN-00147]:Request by Steinberg Architects, on behalf of Casa Olga and 21 Joie de Vivre Hospitality, for Architectural Review of an existing eight story building and conversion 22 to an 86 room hotel use and ground floor restaurant with a Design Enhancement Exception (DEE) for a 23 roof extension and new entrance canopy and Sign Exceptions for one canopy sign and a projecting 24 sign. Zone: CD-C (P). Environmental Assessment: A Negative Declaration has been prepared for the 25 project in accordance with the California Environmental Quality Act (CEQA).26 27 Chair Wasserman: Everybody, we are back in business. Everybody ready to go here? Ok. We are 28 resuming the Architectural Review Board (ARB) meeting for the last item on the agenda, Item #5. At 29 180, we seem to have a lot of 180’s today. 180 Hamilton Avenue. Different place. A request by 30 Steinberg Architects, on behalf of Casa Olga and Joie de Vivre Hospitality,can you guys hold it down 31 back there please? for Architectural Review of an existing eight story building and conversion to an 86 32 room hotel use and ground floor restaurant with a Design Enhancement Exception (DEE) for a roof 33 extension and new entrance canopy and Sign Exceptions for one canopy sign and a projecting sign.We 34 are in the CD-C (P) zone and a Negative Declaration has been prepared for the project in accordance 35 with the California Environmental Quality Act (CEQA).Do you have a Staff report?36 37 Clare Campbell: Good morning. This project, this morning we have the project for the Casa Olga 38 Hotel which you’ve seen, let me just pause and start over, excuse me. This morning we have the Casa 39 Olga project back for formal review. As noted in the Staff report, you have seen this project on two 40 occasions for preliminary review and for a study session. The basic design of the project has not 41 changed since you first saw it back in February and in the review of the project it was determined that 42 the project requires a DEE and a Sign Exception. A DEE request is for the extended building length to 43 accommodate a new entrance canopy for the primary entrance on Emerson Street and for the extension 44 of the roof to the property line on Hamilton. The Sign Exception request is for the placement of signage 45 above the entrance canopy and for a projecting sign that exceeds the allowable area and height limit. 46 47 City of Palo Alto Page 2 Attachment A of the Staff Report provides the project’s compliance with the required findings to 1 support these exceptions,and as required in the conditions of approval the details of the sign text will 2 need to return to the ARB for formal review and approval and this is Condition #3 of Attachment C of 3 the Staff Report. As for the CEQA on the project the 20 day public comment period ended yesterday 4 and Staff did not receive any comments on the draft Negative Declaration. This concludes Staff’s 5 presentation.the Applicant is prepared to provide a detailed presentation for you this morning. Thank 6 you.7 8 Chair Wasserman: Thank you. The Applicant you have 10 minutes. Welcome back.9 10 Rob Steinberg, Steinberg Architects: Good morning, good morning. Happy to be here, Rob Steinberg, 11 Steinberg Architects. We would like to walk you through our presentation, which is really a refinement 12 of what we looked at a couple of weeks ago and then if necessary we’d save just a minute for Sandy 13 Sloan to speak before you close the public hearing. There are issues that need to be addressed as well. 14 15 Chair Wasserman: If that doesn’t work out she can speak as a member of the public too.16 17 Mr. Steinberg: Ok. Thank you. So we’re all familiar with the site at the corner of Emerson and 18 Hamilton. Originally built in 1975, permitted as a hotel. Fairly solid building, I kind of think it looks 19 like its sitting back on its heels a little bit. Low key appearance to the residential neighborhood and 20 fairly solid heavy block building. Just to refresh your memory,we are orienting the restaurant and the 21 restaurant entry to Hamilton and pulling the cars and the canopy entrance to the hotel and the lobby off 22 Emerson although they are connected, you could get into the building in either direction. A lot of 23 thought about the street furniture, both for the extension of the restaurant that can open up to the street 24 as well as sort a transitional zone between the public sidewalk as you come into the building with 25 planters and seating to really make it feel residential and home like. 26 27 We have a canopy that projects out around the building of different height, of different dimension. It 28 brings the building scale down to the pedestrian level and you might remember that we’re wrestling29 with a share wall that comes and wraps around this part of the building. And it’s very difficult to 30 penetrate that share wall, so we’ve come up with a strategy to put LED lights behind a perforated metal 31 screen that would illuminate that solid part of the building and our proposal is Emerson is such a tree 32 street, physically with the trees it’s got the mural up above and our intention is to use a perforated metal 33 screen that abstracts the idea of tree. And I think you would enjoy that, it would glow whether you 34 were close to it and you saw that it was the tree or you were farther back, I think that it works on 35 several different levels.36 37 On Hamilton we’re really opening up most of the first level with bi-fold doors so that the relationship 38 between the restaurant and the street is very transparent. You asked a little bit about some of the details 39 for the trellis over the restaurant. Excuse me. So from the slab we’re supporting it on a steel frame 40 structure and then attaching a wood frame trellis below that,that would bring the scale down and give a 41 little sense of enclosure, help connect the inside and the outside. There will be Tivoli lights integrated 42 within that space as well as space heaters.43 44 So just talking a little bit about the design, we have talked about this before but I just refresh your 45 memory. The existing profile of the building really the middle section protrudes out quite a bit. And 46 what our thought was,was to wrap this big block building with a new skin and begin to change the 47 proportions. Where this is quite wide and solid to be able to narrow this up and get a little bit more 48 City of Palo Alto Page 3 vertical, to wrap the older building and then to use the existing horizontal balconies as an accent to 1 weave the two together. 2 3 We’re proposing a composite metal panel that would simulate a wood tone, warm colors that would 4 complement the building, dark window frames. There was questions a little bit about the detailing on 5 the panel when we had our study session about a month ago and one of the things that we’re doing is 6 we’re taking the metal panel and we’re wrapping it in so that it doesn’t feel thin, but it feels like it has a 7 thickness and a dimension with a gap so that those gaps would read though and as you got close to it or 8 as you looked at it you didn’t get the appearance that it was thin but that it had depth. And we’ve also 9 looked at how we turned the corners when the wood comes down and miters back and we’ve worked 10 out a detail where we think that using a solid piece on the corner and changing the grids could really be 11 quite elegant.12 13 We’ve also tried to think about the transition from the adjacent building that has a certain kind of scale 14 to help break down the full block size of this into smaller pieces and lighten it up so that that transition 15 is a little more comfortable than it is today. We’ve wanted to be very thoughtful about the lighting and 16 the impact to our neighbors, to the residential side, so we’re proposing very small ground level lighting 17 that would wash the horizontal surface and then deeply recessed lights that again would wash the 18 horizontal surface with extra lenses that would hide the light source, so very little impact to our 19 neighbors. And our strategy is to continue this wrap idea but to be very modest in how we do that on 20 this elevation. 21 22 On the Hamilton Street side we are extending the roof and because we have a little higher ceiling height 23 at the transom we’re gonna mount a light fixture that would very gently wash the underside of the roof 24 extension so that at night that really glowed and it added a light and an energy and a sparkle to this part 25 of downtown. So that’s our general presentation we’d be happy to answer questions. Thank you.26 27 Chair Wasserman: Terrific. Would you like to speak to us now?28 29 Sandy Sloan: I was gonna speak just briefly about parking because even though it seems like no one 30 from the public is here there was a letter earlier asking questions about, about parking. This property is 31 in the downtown parking assessment district and it pays for 195 spaces and that’s because the 32 downtown parking assessment district requires that all buildings in downtown Palo Alto pay for one 33 space for each 205 square feet. And interestingly enough, hotels under the zoning code require only 34 one space per room, plus one space for every 250 square feet of restaurant. So if we not in the 35 downtown parking assessment district the requirement would be for 91 spaces. So this property 36 essentially has been paying double what it needed to pay into the assessment district and as you know 37 buildings that are in the assessment district the way that they meet the parking is by paying into the 38 assessment district.39 40 And then in addition to that I wanted to mention that the Planning Director has approved our removing 41 the five parking spaces that are in that sort of hole on Emerson Street and we will be paying 42 approximately $61,000.00 per space into the in lieu parking fund. And that I also wanted to emphasize 43 that we’re not removing any two hour or three hour parking stalls along the street in Emerson with the 44 lobby being on that side because there’s the curb cut and then there’s a loading zone and then there’s a45 30 minute parking space there.So those will be removed for valet parking backup and we are working 46 with the private property owner right now on finding a place for valet parking. So if you have any 47 more questions on that let me know.48 City of Palo Alto Page 4 1 Chair Wasserman: Thank you very much. Is there anyone here from the public to speak on this 2 project? Could you come, I’ll let you speak first and fill out a card later. You have three minutes.3 4 Rob Fischer:Hi, my name is Rob Fischer and I have some concerns about things that, I’m a restaurant 5 owner in the town, and one of them is garbage. I want to make sure that we address the proper size of 6 area for garbage cause it’s a problem with us for our neighbors that have just moved in and I spent a 7 whole afternoon going through the City trying to find someone to address this before the permits were 8 issued and after four hours I gave up. I just, I got sent from one side of the street to the other side of the 9 street to GreenWaste and we ended up not having enough space for the new property that went up and 10 it’s a mess. We have garbage containers everywhere. 11 12 The entrance for this hotel, the turnabout, how many, I’d like to know how many cars it can 13 accommodate at once so that when people pull in, I’m concerned about traffic congestion. It’s not just 14 the entrance of the hotel, it’s also for deliveries and what the impact is gonna be on the actual traffic for 15 the street, for the flow. We spent a lot of time on the Stanford Shopping Center talking about this, this 16 is even more critical as it’s gonna, it could conceivably create problems for other businesses in the area 17 as far as deliveries go. How many deliveries a day? What time of day? And, let’s see, I’d also like to 18 know how many seats are proposing for inside the restaurant and the size of the area for that and the 19 kitchen so that, I would just like to know so that… the competition is good for everybody in town, 20 don’t get me wrong, ok? I would just like to know so we make sure that everything is accommodated 21 as far as the deliveries and the garbage. I mean it’s not just the hotel/restaurant that there will be 22 garbage for. There’s rooms, there’s offices and other things. 23 24 What’s happened next to me is that we have a restaurant and then two floors of office space and there’s 25 not enough room for the garbage and how’s it gonna get picked up and those types of things. And 26 these things are gonna impact my businesses, I have three businesses within walking distance of this 27 hotel so I just like to see if we can get it resolved ahead of time so that we’re not fighting it afterwards 28 like I am with our neighbors now. So, ok.29 30 Chair Wasserman: Thank you very much. Would the Applicant like to respond to those concerns 31 please? Could the speaker fill out a speaker card so we have a record of, of your, fact that you did 32 come and speak to us? So talk about deliveries, garbage, and how many seats you have outside, please.33 34 Mr. Steinberg: Ok. First of all we have room for about approximately three cars there for loading and 35 drop off, for guests arriving at the hotel, which as Sandy pointed out are not eliminating any parking 36 currently. Service is over on this side of the building, it’s recessed back and it’s where the existing 37 loading dock is currently.So we’re not making any changes there.38 39 Chair Wasserman: There’s a curb cut?40 41 Man off microphone and camera: I’m sorry, what (unintelligible)saying?42 43 Mr. Steinberg: It is right here and there is a roll up loading dock door currently. It’s where the service 44 (interrupted)45 46 Man off microphone and camera: What street is that?47 48 City of Palo Alto Page 5 Mr. Steinberg: That, That’s on Hamilton. This was the service area. There was a restaurant, a food 1 service in this when in its previous life and with a service elevator in this location so we’re keeping the 2 service patterns exactly as they have been since the beginning (interrupted). 3 4 Chair Wasserman: And is there a curb cut there? 5 6 Mr. Steinberg: There is an existing curb cut;we’re not modifying anything there.7 8 Chair Wasserman: Ok, and the size of your garbage and where that’s gonna be?9 10 Mr. Steinberg: So we have been working with the City, we’ve been working with GreenWaste, we 11 actually in this last go round we’ve increased the size for our trash and we’re still working with them 12 on exactly what size bins we’ll use, but we think we’re very close to resolving that. And we have made 13 some changes since we saw you last time. 14 15 Chair Wasserman: Ok and how many seats will you have in your outdoor terrace?16 17 Mr. Steinberg: Well we have about 85 seats that we’re showing inside in the restaurant and the outside 18 is still in flux and that will be moveable furniture and we’ll see how that works, so there isn’t really a 19 hard count for that. But that’s about 85 seats in the restaurant.20 21 Chair Wasserman: So you thinking about one row of tables or two rows of tables on the street?22 23 Mr. Steinberg: We’re, well, on this side we have one row of tables and here we’ve got, sort of little 24 more informal kind of like cocktail sitting area, so it’s a modest, it’s a modest expansion. But the idea I 25 think more important is that this whole wall is foldable glass so that we’re trying to make a connection 26 between the inside and the outside so that it really activates the street and as the pedestrians are moving 27 along, you’re part of the life inside the building.28 29 Chair Wasserman: Ok, thank you. Are there any other speakers to this project? I’m gonna close the 30 public hearing and take this back to the Board. Alex, why don’t you start? 31 32 Board Member Lew: I have some questions I guess for Staff. So on the, the, for the DEE for the 33 entrance canopy, I was wondering if that was, if you guys had reviewed that with the Planning Arborist 34 and the street trees because looking from the plans it looks like there’s a potential conflict with the 35 street trees and the depth of that overhang.36 37 Clare Campbell: So Dave, Dave Dockter has reviewed the plans when it first went though, you know a 38 couple months ago and he did not have any issues with the proposed placement of the tree and the 39 canopy. 40 41 Board Member Lew: Ok. It seems like there’s, I think are you proposing new, all new street trees? Or 42 are any of them, or are any of them going to remain? It seems like if they’re all new then we don’t 43 have an issue.44 45 Mr. Steinberg: We are, we are proposing new street trees.46 47 Board Member Lew: Ok, on Emerson as well as Hamilton?48 City of Palo Alto Page 6 1 Mr. Steinberg: Yes.2 3 Board Member Lew: Ok. Then I think that solves that problem. Also for Staff, on the signage. Oh, 4 I’m sorry Clare. So, on the signage, are you asking for like, conceptually that the Board say it’s ok that 5 these are larger and (interrupted)6 7 Clare Campbell: Yes.8 9 Board Member Lew: But even though we don’t have an actual design?10 11 Clare Campbell: Yes.12 13 Board Member Lew: Or do you think that, should the sign should actually should come back to us, you 14 know, at another date.15 16 Amy French: I think the concept that you’re speaking of the vertically oriented, yes17 18 Board Member Lew: The vertical sign, yeah. Projecting sign.19 20 Amy French: You know the concept that that’s a, you know, that’s a, the, what did we call that? 21 Projecting sign through a DEE process, that’s what’s requested today. The letters, what the letters say, 22 the materials of the letters and the sign, the size of those letters and the signage itself, you know, can be 23 saved for another day, but the thing that it sits on, the width of it (interrupted)24 25 Board Member Lew: Right, just the idea, the concept.26 27 Amy French: The concept does, yeah.28 29 Board Member Lew: Because the plans are showing different size signage on different sheets and stuff 30 so it’s hard for me to like say what, to make a determination, but I mean conceptually I’m ok with the 31 big idea. But I, but we have so many issues with the details on signs (interrupted)32 33 Amy French: I think we have findings too if you want to look at those with respect to that.34 35 Board Member Lew: Ok. I think also so there are a lot of, also another question I had for Staff was the 36 planters along the sidewalk. So I know it’s come up before on other projects about the drainage for the 37 planters and stuff and I was wondering if that was, if you guys had had any issues with that, you know. 38 39 Clare Campbell: Staff actually did not go into that level of detail with the plans, but we can have the 40 Applicants look at that further and bring that back to us.41 42 Board Member Lew: Ok. And then I just had a question about the valet parking requirement. And I 43 was just, this was not, I don’t necessarily have an issue with it on this project but I was curious because 44 we have had other hotel projects come through. So how does that, what is the mechanism for the valet 45 parking? Like what triggers, like the valet parking requirement? 46 47 Clare Campbell: It’s the Applicant’s request to do, we’re actually not requiring.48 City of Palo Alto Page 7 1 Board Member Lew: Ok, that’s what I thought. Ok, thank you. Ok then I had a couple of questions on 2 the building. So on the, I think on some of the plans that you’re showing you know the new railings, 3 the metal railings, I think they were calling that out to be painted and I was wondering what the, I don’t 4 think we have a color on the material board for that. I was wondering what the idea was for that color.5 6 Mr. Steinberg: The idea is for the railings to disappear, for the slab edge, the white horizontal lines to 7 be dominant, so I’m not sure if we had put that on the board or not, but it would be either to match the 8 window sash, but sort of in a grey or brown that would recede. That would disappear.9 10 Board Member Lew: Ok. So the windows are dark, right?11 12 Mr. Steinberg:Correct. 13 14 Board Member Lew: Ok, but the, I see. Ok. I think I understand. And then the, and the perforated I 15 think you were calling the perforated metal [roof] screen on the plans and I was wondering, I don’t, 16 wondering what that was, I don’t think that appears on the color board unless it’s the same as the art 17 screen, you know, down near the sidewalk. 18 19 Mr. Steinberg:It is similar to that, what it is, is it’s the dividers between the balconies between the 20 individual units, so it would be these.21 22 Board Member Lew: Ok, good. And on the, on Mr. Fischer’s comment about the garbage I’m glad to 23 see you’ve enlarged it since, I think the first time we saw it. I was wondering, oh and I did want to 24 comment that on the life kitchen thing, I mean that was an issue, I mean I think what the Board 25 recognized that it was really, really small and just very complicated to get it to work but we didn’t 26 really see any other ways to resolve it given the (interrupted). I’m sorry.27 28 Man not miked or on camera: You have to go inside the building which they made me do on a project 29 and I just, I wanted to be fair, ok?30 31 Chair Wasserman: Excuse me, I’m sorry the public hearing is closed. I’m sorry.32 33 Board Member Lew: And yeah, it did seem like previously the garbage area seemed really small for a 34 hotel and a restaurant. So we do want to make that work because otherwise I think we’ve seen some, 35 like what happens elsewhere downtowns that sometimes like they, it spills over out into the alleys and 36 stuff like that and it’s really, it’s sort of very unattractive and in this case you don’t really have any 37 other choice but to have the service entrance on Hamilton. Like you don’t have an alley or anything to 38 provide, you know, better more appropriate service location.39 40 So, so in general though I’m in support of the project. I do support the DEE’s for the, for the, for the 41 extended, you know, lengths. And I do think this is a really beautiful addition to, to downtown and I’d 42 be happy to make a Motion to approve it.43 44 Chair Wasserman: Thank you very much Alex. Clare.45 46 Vice Chair Malone Prichard: I don’t have a lot to say because we’ve seen this how many times before 47 but thank you for bringing it so many times. I’m quite comfortable with it. In fact, I know I initially 48 City of Palo Alto Page 8 had an issue with the brick being reused, but I’m actually warming up to that now after spending some 1 time with it. So, I actually don’t have any design comments. I am fully in support of the Sign 2 Exception findings. 3 4 I had a couple of comments on the approval findings. A couple of them were shown as “not 5 applicable,” but I think they actually are applicable and can be made in the affirmative. That’s finding 6 #9 having to do with ancillary functions. We were just discussing garbage, etcetera, back of the house. 7 I think that had been handled well. #10 access to the property being convenient is also applicable and 8 can be made in the affirmative. And I think it was finding #7 that the building planning and siting 9 create an internal order. And that would also be true in this case based on where they’ve located the 10 restaurant and the lobby. So I am fully in support of the project.11 12 Chair Wasserman: Thank you Clare. Lee.13 14 Board Member Lippert: First of all I just wanted to ask that Staff address Mr. Fischer’s comments 15 privately with regard to his own problems and direct him to the appropriate code compliance person on 16 Staff so that he gets his concerns dealt with toot sweet.17 18 I’d like to thank the Applicant and the project team. The work that you’ve done here in terms of the 19 groundwork I think has really paid off for you. My comments are really rather minimal because you’ve 20 done so many preliminary reviews with us that those comments have really been addressed and they’ve 21 been addressed in very positive way. I do have a couple of additional thoughts here and I just wanted 22 to flesh it out with Staff a little bit. 23 24 With regard to the parking I know that that’s a tremendous concern from neighbors and with the 25 parking, with the payment that has been made into the parking assessment district, what it really does is 26 it pays for structured parking elsewhere. But for a hotel you really park at your own peril. People 27 come to a hotel, they come to stay, they have to find parking. If it’s in a City garage it’s timed 28 generally only for a couple hours during daylight, daytime hours. A lot of these people are going to be 29 parking during the daytime. You’re talking about valet parking. Valet parking is problematic in the 30 sense that the valets poach or use public parking and oftentimes use on street or the City surface 31 parking lots which take up the parking from other people that would be coming to the City. So it’s 32 almost like those little games that you play with the squares and you move them around to get the 33 numbers or the alphabet in order. It’s really all in the mechanics of how you, you’re able to make this 34 work. So maybe you wanna talk a little bit about that and how the valet parking is going to work 35 mechanically.36 37 Ms. Sloan:Well, I think as Clare explained there’s no requirement that anyone have valet parking. It’s 38 something an Applicant asked for, it’s actually not in the zoning ordinance it’s in another part of the 39 code and you apply for a permit to the Police Department. However in this case one of the conditions 40 of approval is that we get approval from both the Planning Department and the Police Department on 41 our valet scheme and what we’re trying to do, which is hard, but we have one good, good possibility so 42 far, which is to find some private property that has underutilized parking and have that be first choice 43 and then if that doesn’t work out or there are not enough spaces then to work with Planning and the 44 Police Department on what might be available in sort of some obscure locations where people never go. 45 For example, there’s a parking lot under 800 High Street. Nobody ever goes there for the public 46 parking. So that’s just an example. 47 48 City of Palo Alto Page 9 The way that we envision it working is the valet would only be available to the hotel guests; it’s not for 1 the restaurant. Even though there are restaurants like Evvia as you’re familiar with have, well that’s a 2 very big restaurant and they have valet parking. So it would only be available for hotel guests and 3 people would pull up on Emerson and as, as we pointed out earlier there are three spaces there and so 4 the valet attendant would, would come out and would take the car to the appropriate location. Is, is that 5 enough? 6 7 Board Member Lippert: I think that begins to address the issue and I think that what we don’t want to 8 have happen, I mean it’s easy. It’s easy to have people arrive at your hotel and then have to go park 9 their car elsewhere. They do it at the Cardinal Hotel no problem. However, and they also do that I 10 believe at the Keen Hotel as well. In this case my concern is simply that, that a program be worked out 11 that we’re not poaching public parking from, from what other citizens driving to the downtown and 12 they would be displaced and they would be hard put to, to finding parking because what it does that 13 really takes it away from other merchants in the downtown area.14 15 Ms. Sloan:No, and we understand that, how sensitive this issue is right now and we will continue 16 working with Planning and Police on where the appropriate places are.17 18 Board Member Lippert: Ok.19 20 Ms. Sloan: Thanks.21 22 Board Member Lippert: Ok, other than that I don’t have any other concerns. I think you’ve done a 23 great job.24 25 Chair Wasserman: Thank you very much. I have very few concerns also. I just had a question about 26 the valet parking. Would it, if things get really sticky could you buy permits and use permit parking 27 spaces for any guests that might come?28 29 Ms. Sloane: I think that’s a possibility. Frankly that’s what we understand that Hotel Keen does is that30 they buy permits. Permits are supposed to be for one. The basic program is a permit is for one person.31 32 Chair Wasserman: It could be your valet.33 34 Ms. Sloane: Yeah. And it’s too bad Jaime’s not here, because I think because of all the attention on 35 downtown parking recently I think the Planning Department is in the, or the Transportation Division of 36 the Planning Department is in the throes of looking at all sorts of different things. I mean they are 37 looking at paid parking like Redwood City where you put in quarters and they’re looking at issuing 38 more permits and a way to have permits shared. And the simple answer is yes, that’s a possibility but 39 the whole program is in flux.40 41 Chair Wasserman: Yeah. Ok, thank you. That’s hardly an architectural issue. I did have a question 42 about the canopy, the DEE for the canopy. Does that, that canopy does not project beyond the property 43 line, does it?44 45 Clare Campbell: The canopy on Emerson?46 47 Chair Wasserman: Yes, the one that we need the DEE for.48 City of Palo Alto Page 10 1 Clare Campbell: Yes it does it goes substantially into the right of way.2 3 Chair Wasserman: And how high is it above the ground? I mean this is more of a Public Works issue 4 then, I mean it’s sort of a combination thing but basically if Public Works doesn’t come down on your 5 head then I’m fine with it.6 7 Clare Campbell: And Public Works has commented that they’re fine with the project.8 9 Chair Wasserman: Oh, good for them. Can you put your, the sign that you have above the canopy can 10 you put it on the face of the canopy?And that would eliminate the need for the other thing.11 12 Mr. Steinberg: It’s possible. I think what we would like to do, what we’ve been anticipating is we have 13 to refine the specific signage and come back to you.14 15 Chair Wasserman: Yeah.16 17 Mr. Steinberg: But we would like to leave that option open at this time. 18 19 Chair Wasserman: Yeah, cause I mean we don’t know what the name of the hotel is yet. Casa Olga 20 Boutique Hotel is a lot of signage. So if it were maybe just the Casa Olga Hotel and there was a high 21 contrast between the letters and the background then that would take up quite a lot of that canopy and 22 have sufficient presence so that people would know what you were. I mean we’re not (interrupted)23 24 Mr. Steinberg: It could, it could, we’ve talked about having it on the fascia. We do have the backlit 25 screen below it, so you know maybe the signage wants to be a different vocabulary but both options I 26 think are in play at the moment.27 28 Chair Wasserman: Ok so it comes back to us anyway. I have a question for Staff about the projecting 29 sign which is the vertical one. Could that be interpreted as a wall sign? Because that little thing could 30 be a piece of a wall? What is going on here?31 32 Amy French: Wait, wait. I had just called for Attorney Larkin to come down while there was parking33 discussion in case there was questions but I didn’t hear your question. Could you please?34 35 Chair Wasserman: Oh it was a question of that vertical piece of wall that says “Hotel” on it, could it be 36 called a wall and that be called a wall sign? I’m in favor of the thing, I just don’t know that we need to 37 jump through hoops.38 39 Amy French: We’re, we’re breaking new grounds calling it a projecting sign. We understand that. 40 41 Chair Wasserman: Well that’s what a, that’s what a projecting sign is but my question is could it call a 42 wall sign?43 44 Amy French: Yeah. It’s a blade sign, it’s a blade sign basically underneath the canopy that they’re 45 proposing.46 47 Chair Wasserman: Yeah in which case it would be legal.48 City of Palo Alto Page 11 1 Amy French: Well, no a blade signs, I mean projecting signs are supposed to be much smaller than this, 2 so the exception is for the very large size of the projecting sign.3 4 Chair Wasserman: Ok, so if you call it a wall sign then is it different?5 6 Amy French: Well then we’re, then we’re saying you’re putting a wall in the special setback, which is a 7 variance and then it’s Planning and Transportation.8 9 Chair Wasserman: Oh, ok. Never mind. I’ll go for the DEE. It’s not worth the trouble. 10 11 Board Member Lew: Can I ask a follow up? I’m just reading the, the findings. So then we’re actually 12 saying that that whole, not just the letters “Hotel” we’re actually saying that whole fin, the 76 feet, that 13 entire thing is a sign?14 15 Amy French: Yes. It’s a projecting sign.16 17 Board Member Lew: Got it. Ok.18 19 Amy French: Here.20 21 Chair Wasserman: So I have two little dinky questions about what I think are mistakes in the drawings 22 but clear me up. On the, the Emerson Street elevation the upper part of what is called out as “painted 23 existing brick veneer wall” the, the elevation doesn’t match the perspectives. I think there’s a mistake. 24 There’s some piece of stucco that’s called out next to it, painted cement plaster, and I don’t, I think that 25 either stucco doesn’t belong there or the brick doesn’t belong there. It doesn’t make sense and I don’t 26 think, I think it’s just a drafting error.27 28 Mr. Steinberg: I think it is. It should be all brick.29 30 Chair Wasserman: Ok, so that little, so it’s either all brick or all stucco at the upper level. Ok. And 31 then the other question has to do with on Page A21 at the upper part of the Section on the, Section #1 at 32 the upper left, it says “guest room balconies” and then there’s a big fat solid wall. So either it’s a 33 balcony or it’s a room, or the wall isn’t there, and I think that is also just an error or an unfortunate 34 place to cut your Section.35 36 Mr. Steinberg: Are you on Section 1 or 2?37 38 Chair Wasserman: Section 1, the top level on the left where it says, “guest room balconies” 8 39 something. 8 eleven, 8 thirteen. There’s a solid wall shown at the outside, the exterior wall. So that 40 couldn’t be a balcony because it would have a solid wall. So it’s either mistake in the label or mistake 41 in the drawing. You wouldn’t want somebody to build it wrong, would you?42 43 Mr. Steinberg: It’s a little bit of an anomaly on where the Section (interrupted)44 45 Chair Wasserman: So the Section’s cut in an unfortunate place. Ok. I really like this project a lot. I 46 think this is great, I think the solution of the perforated screen at the bottom is a very creative solution 47 and I think it’s gonna be really fun and if the rooms aren’t too expensive I’ll probably have some guests 48 City of Palo Alto Page 12 stay there. Ok, I think we’re ready for a Motion, anybody want to make a Motion. You were the first 1 Alex, you were the first person to say you would support this project. Do you want to move it?2 3 Board Member Lew: I had one follow up question. 4 5 Chair Wasserman: Go ahead.6 7 Board Member Lew: So, so we had a big to do on sidewalks on a recent project and I saw that you had 8 like two different colors of stained concrete in the drawing set.9 10 Mr. Steinberg: Let me pull it. Yeah for the sidewalk. So we (interrupted)11 12 Board Member Lew: Sheet A25.13 14 Mr. Steinberg: Ok.15 16 Board Member Lew: I guess my, the big question that I have is, well, is, what is the design intent and 17 then are you trying to differentiate the patio seating for the restaurant from the regular City sidewalk?18 19 Mr. Steinberg: What I can tell you is that we have modified the paving since the last time we saw you 20 to the stained concrete. The two tones I need a little, I need a moment to understand that I’m not quite 21 sure. 22 23 Woman not introduced: We have changed the outside concrete color where you have the dark gray 24 patches to integral color, one gray color and that’s according to City standards. Then the second color 25 that you see would be used in the lobby, in the elevator lobby inside and it’s gonna be a laid in carpet as 26 well in that area. But the idea is to make the outside flow inside. 27 28 Board Member Lew: Got it. And then when you said like it meets the City standards, I mean we 29 actually allow any, I think, my understanding we allow any other any color. Oh but you’re saying 30 you’re matching the normal, you know the normal concrete sidewalks have like some [lamp lock] in 31 them.32 33 Woman not introduced: You can have some integral color to it, yeah. 34 35 Board Member Lew: Right but you’re saying you’re actually trying to make something different from 36 the regular City sidewalks, yes.37 38 Woman not introduced: Yes. It would be a gray that distinguishes the entry of the hotel because we 39 have so little to work with there on that side.40 41 Board Member Lew: Ok. It think that, I guess I think the only thing I would like to see like a 42 [heartscape]plan is how, I think what you know we had last meeting is how that ties, how all of the 43 sidewalks tie together like the new and the old and the curb and the handicapped curbs and all that.44 45 Mr. Steinberg: If you remember last time we were proposing a paver in the right of way and someone 46 brought up have you really reviewed that with Public Works so when we went back that was not 47 acceptable. So we have modified it to be a concrete, but an integral color concrete that gives, that 48 City of Palo Alto Page 13 meets their requirements but gives some, some cues when you’re going from the public to the semi-1 private and you’re transitioning and then we’ve tried to carry that into the building.2 3 Board Member Lew: Ok, that’s fine. I don’t think that, I doubt that the Board has a design issue with 4 that, I was just thinking we should see the hardscape plan.5 6 Chair Wasserman: And were you making a Motion?7 8 Board Member Lew: Well if you, if there’s support of that I would like to include that in a Motion that 9 we, yeah.10 11 Chair Wasserman: Ok, so I think I heard a, well, why don’t you make one?12 13 MOTION14 15 Board Member Lew: Ok, so Motion to approve the project as conditioned in the Staff Report with the 16 following clarifications on like the railing color, on the mechanical screen material and color, and the 17 and a hardscape, like a final hardscape, paving plan, and I think that could come to subcommittee 18 unless the rest of the board wants to see this.19 20 Chair Wasserman: Any other conditions? Is there a second?21 22 Clare Campbell: Excuse me, there was one mention about the planter, the drainage for the planters. 23 Did you want that to return to subcommittee?24 25 Board Member Lew: No, I mean I think this is something that’s been brought up to, I don’t think the 26 Board necessarily has a condition, issue with it. I think that this is come up on other downtown 27 projects done by Staff.28 29 Amy French: We should disclose we’ve only have one of the pages of the conditions as is30 inadvertently left out so we, there will be more conditions than just that one page showing in the 31 approval letter that would come out following for the other departments, yeah.32 33 Chair Wasserman: do we have a second to Alex’s Motion?34 35 Vice Chair Malone Prichard: I had a question first, are we also folding in those revisions to the 36 approval findings that I listed?37 38 Board Member Lew: Yes.39 40 Chair Wasserman: Yes.41 42 Board Member Lew: So that would be 9, 10, and 7.43 44 SECOND45 46 Vice Chair Malone Prichard: Second.47 48 City of Palo Alto Page 14 Chair Wasserman: We have a Motion and a second and conditions. Is there any other discussion of this 1 Motion? Ok. All in favor? Aye. Anybody opposed? Sounds like no. You’re good to go. So the 2 conditions will come back to the subcommittee. Thank you. 3 4 MOTION PASSED (4-0-0)5 6 ATTACHMENT G Page 1 of 1 ZONING COMPLIANCE TABLE 180 Hamilton Avenue / File No. 12PLN-00147 CD-C ZONE DEVELOPMENT STANDARDS STANDARD PROPOSED PROJECT CONFORMS Minimum Building Setback Front Yard –Hamilton Avenue Special Setback 7’Existing:9’-6”Yes Rear Yard None Required Existing:none Yes Interior Side Yard None Required Existing:none Yes Maximum Site Coverage (building footprint) None Required Yes Maximum Height 50’Existing:76’No; Legal Non- Complying Daylight Plane Same as abutting residential zones Not Applicable Yes Floor Area Ratio (FAR)17,000 s.f. (2.0:1) (up to 3.0:1 allowed with bonus) Existing:51,051 s.f.No; Legal Non- Complying Parking Requirement (within the Downtown Parking Assessment District) 1 space/250 s.f.*None; Applicant will pay in- lieu fees for the 5 removed spaces Yes Bicycle Parking 20 spaces 1 space/2,500 s.f. 8 short term** 89 long term Yes *At the time the parking assessment was calculated for this site, the City staff determined that 200 spaces were required for the building. With five spaces provided on-site, the property was assessed for 195 parking spaces. The proposed project would eliminate the five on-site spaces, requiring the applicant to pay in-lieu fees towards the construction of future parking for these removed spaces (at the current rate of $60,750 per space). ** The project complies with the number of bike spaces needed. The applicant is required to allow guests to store their bikes in their hotel room (86 rooms) and the hotel has a small bike storage room on the first floor (holds 3 bikes). The required short term bike spaces is 12; the City has conditioned the project to provide additional spaces if the City deems it necessary. 5964.txt Text only. Page 1 CITY OF PALO ALTO OFFICE OF THE CITY CLERK July 23, 2012 The Honorable City Council Palo Alto, California Designation of Voting Delegate for the League of California Cities Annual Conference RECOMMENDATION: The City Council should designate Council Member Nancy Shepherd as the voting delegate for the 2012 League Conference. BACKGROUND: The League’s 2012 Annual Conference is scheduled for September 5-7 in San Diego. An important part of the Annual Conference is the Annual Business Meeting scheduled for noon on Friday, September 7, at the San Diego Convention Center. At this meeting, the League membership considers and takes action on resolutions that establish League policy. The resolutions will be brought to Council for their recommendations at the Special Council meeting of Tuesday, September 4, 2012. In order to vote at the Annual Business Meeting, the City Council must delegate a voting delegate and could appoint up to two alternate voting delegates. Council Member Shepherd will be attending the League Conference and should be designated as the voting delegate. Attached please find correspondence received from the League of California Cities. Department Head: Donna Grider, City Clerk Updated: 7/17/2012 3:39 PM by Donna Grider Page 2 City of Palo Alto (ID # 3008) City Council Staff Report Report Type: Consent Calendar Meeting Date: 7/23/2012 Council Priority: Land Use and Transportation Planning Summary Title: Park Improvement Ordinance -Cogswell Plaza Title: Adoption of an Ordinance Approving and Adopting a Plan for Improvements to Cogswell Plaza From: City Manager Lead Department: Public Works Recommendation Staff recommends that Council adopt the Park Improvement Ordinance for landscape, irrigation, seating, and pathway improvements at Cogswell Plaza (Attachment A). Background The renovations to Cogswell Plaza will improve the aesthetics and usability of the space, while addressing needed landscaping upgrades. The proposed project was presented to the Parks and Recreation Commission (PRC) on December 13, 2011. Comments from the PRC included increasing visibility in the plaza, and they further discussed how the open space would function with the proposed added seating area if events such as the brown bag concert series were scheduled again. To maintain the open space for outdoor events the space would be rotated to have the performers on the north side of the turf area with the proposed seating area at the rear of the seating area. A request was made by the commission to review the seating options in the proposed seating area to provide a diversity of options. On January 18, 2012, a community meeting was held to review the proposed design. Members of the community provided input about safety concerns with the Plaza and agreed that the renovations were needed and welcomed. On February 28, 2012, a second presentation was given to the PRC. The PRC reviewed the seating options in the proposed seating areas to include benches along with tables and the proposed renovation plan was approved. A Park Improvement Ordinance was also presented at the meeting, and the PRC recommended that the Council adopt the PIO pertaining to the project plans. An Architectural Review Board (ARB) study session was held on April 19, 2012. Recommendations from the ARB included keeping the bus stop connected to the proposed seating area, allowing tables and chairs to be moveable, having new bench seating areas face each other to promote group interaction, providing greater seating options, and creating a hard surface transition between the decomposed granite walkway and sidewalk paving at the crosswalk. Upon revisions to the plan it was formally reviewed by the ARB on July 12,and approved with the following conditions: Arrange the existing benches in a more spiral layout to match the concrete form, place benches in front of and at 90 degrees to each other to create greater seating and interaction opportunities, stabilize all decomposed granite material,and use more movable seating options. The current rendition of the plan (Attachment A) shows all ARB requested modifications to the plan. Discussion Aesthetic renovations will include removal of all shrub and hedge material on the ground plane and replacement with low growing,climate appropriate plant material. The new planting will give the Plaza a fresh look, require less water and maintenance and will grow to an appropriate size improving the openness of the Plaza. Renovation to the irrigation system will also be performed to coincide with the new planting. The new irrigation system will increase efficiency and reduce water use. Proposed landscape renovation items that focus on usability of the Plaza include repairing and replacing segments of the concrete pathways that are broken and uneven;replacing the outdated trash receptacles and drinking fountain;expansion of the bus stop landing along Lytton;addition of decomposed granite pathways to increase Plaza access;installation of a new bike rack;and improvements to the existing lighting system. To encourage the use of the Plaza by visitors, a portion of the turf area is proposed to be replaced with a circular decomposed granite seating area. Game and dining tables as well as a variety of group and individual seating options are proposed. This expanded seating area will allow a larger user group, from the surrounding facilities, businesses and neighborhood to enjoy the Plaza as well as reduce overall water use. The Cogswell Plaza Improvement Plan (Attachment A, Exhibit A) summarizes the Park Improvement Ordinance. The Ordinance will become effective 30 days after the second reading at Council which is anticipated for early September. Timeline Pending the ordinance’s adoption by the Council, staff will prepare bid documents with an anticipated construction bid opening this summer. Work is anticipated to commence in October, 30 days after the second reading of the ordinance and the work is expected to be substantially complete by November 20, 2012. Resource Impacts Funding for this project is available in Capital Improvement Program project Cogswell Plaza Improvements (PG-11001)as well as Benches, Signage, Walkways and Fencing (PG-06003). Policy Implications The proposed CIP recommendations are consistent with Policy C-26 of the Community Services element of the Comprehensive Plan which encourages maintaining park facilities as safe and healthy community assets; and Policy C-22 which encourages new community facilities to have flexible functions to ensure adaptability to the changing needs of the community. Environmental Review The proposed improvements is considered as minor alterations and repairs to existing facilities and is categorically exempt under the California Environmental Quality Act (CEQA) section 15301 guidelines. Attachments: ·A -0073711 ORDN Cogswell Plaza Plan of Improvements (PDF) ·B - Feb 28, 2012 PRC Minutes (PDF) Prepared By:Peter Jensen, Landscape Architect/Park Planner Department Head:J. Michael Sartor, Director City Manager Approval: ____________________________________ James Keene, City Manager *NOT YET APPROVED* 1 120127 dm 0073710 Ordinance No. ______ Ordinance of the Council of the City of Palo Alto Approving and Adopting a Plan for Improvements to Cogswell Plaza The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Findings. The City Council finds and declares that: (a) Article VIII of the Charter of the City of Palo Alto and Section 22.08.005 of the Palo Alto Municipal Code require that, before any substantial building, construction, reconstruction or development is commenced or approved, upon or with respect to any land held by the City for park purposes, the Council shall first cause to be prepared and by ordinance approve and adopt a plan therefor. (b) Cogswell Plaza is dedicated to park, playground and recreational space. (c) The City intends to authorize the construction of certain park improvements within Cogswell Plaza, as shown on the Schematic Landscape Renovation Plan (the “Plan”), attached as Exhibit “A,” including: (1) Installation of decomposed granite seating area with game table and benches; (2) Clearing of existing vegetation and replanting with climate and size appropriate planting; (3) Installation of a new efficient irrigation system; (4) Repair of existing concrete walkways; and (5) Additional site lighting. (d) The improvements at Cogswell Plaza will include the entire area of the Plaza. (e) The project improvements will avoid protected trees and other sensitive resources, if any. In addition, existing park uses will be restored following the completion of project construction. (f) The project described above and as more specifically described in the Plan, attached hereto as Exhibit "A,” is consistent with park and conservation purposes. (g) The Council desires to approve the project described above and as more specifically described in the Plan, attached hereto as Exhibit "A.” *NOT YET APPROVED* 2 120127 dm 0073710 SECTION 2. The Council hereby approves the Plan for the construction of the improvements at Cogswell Plaza, and it hereby adopts the Plan, attached hereto as Exhibit "A,” as part of the official plan for the construction of the park improvements at Cogswell Plaza.. SECTION 3. The Council finds that the project to construct the facilities at Cogswell Plaza is categorically exempt under the California Environmental Quality Act. SECTION 4. This ordinance shall be effective on the thirty-first day after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: _____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: _____________________________ ____________________________ Senior Asst. City Attorney City Manager ____________________________ Director of Community Services ____________________________ Director of Administrative Services APPROVED February 28, 2012 Draft Minutes 1 MINUTES PARKS & RECREATION COMMISSION REGULAR MEETING FEBRUARY 28, 2012 City Hall 250 Hamilton Ave Commissioners Present: Deirdre Crommie, Stacey Ashlund, Jennifer Hetterly, Ed Lauing, Pat Markevitch, Daria Walsh, Paul Losch Commissioners Absent: Others Present: Council Liaison Espinosa Staff Present: Daren Anderson, Catherine Bourquin, Rob de Geus I. ROLL CALL CONDUCTED BY: Catherine Bourquin II. AGENDA CHANGES, REQUESTS, and DELETIONS: Staff de Geus requested due to the length of the topic to move item 6 iv. Palo Alto Municipal Golf Course reconfiguration project to 6 i. The Commission accepted the change. III. ORAL COMMUNICATIONS: None IV. BUSINESS: 1. Approval of Draft Minutes from the January 24, 2012 regular – The Draft Minutes from the Regular January 24, 2012 minutes were approved as amended. Approved 7:0 2. Approval of the Draft Minutes from the January 31, 2012 retreat – The Draft Minutes from the January 31, 2012 retreat were approved as amended. Approved 7:0 3. Review and recommend Cogswell Plaza Park Improvement Ordinance – Peter Jenson, Public Works Landscape Architect was introduced and along with Staff Anderson presented to the Commission the history and the purpose for the Park Improvement Ordinance. Staff Anderson briefly covered the past history of what has taken place regarding the improvements to Cogswell Plaza. The improvements to Cogswell Plaza will include upgrades to the irrigation, lighting, planting, and park furniture. The plan also includes APPROVED February 28, 2012 Draft Minutes 2 some needed upgrades to improving the security and the usability of the park. Staff Anderson also added that there was a public meeting on January 18th, 2012 and the improvements were well received by the attending public. Mr. Jenson provided the Commission with some slides outlining the improvements that incorporated the comments/suggestions the Commission had made at the meeting on December 18th, 2011. There was no public comment. The Commissioners were then given time to comment on this upgraded proposal.  Commissioner Ashlund inquired on the height of the bushes. She also wanted to know if Public Art could be included in the upgrades. Answer: Due to budget restraints at this time it isn’t part of the renovation but Staff Anderson said that conversation is taken place with the Art Center Division staff for a possibility of including Art in the future. Commissioner Ashlund also asked about the possibility of including exercise equipment at the park.  Commissioner Walsh asked for Mr. Jenson to explain again how and if the Brown bag concerts come back to Cogswell how the new layout will accommodate them.  Commissioner Losch asked if interactive tables are being considered for the park. Mr. Jenson replied that the tables will resemble the type with checkers and chess capabilities.  Commissioner Crommie asked if there were bike racks in the park. Mr. Jenson replied “Yes”.  Commissioner Markevich asked if the Cedar tree that is being cut down could be reused somehow in the park. Mr. Jenson gave an explanation on how lengthy the process is to do that with a tree. There was a motion made by Commissioner Markevitch to accept the Park Ordinance. Motion: The Parks and Recreation Commission approve the Park Ordinance for Cogswell Plaza as presented by staff and hereby attached to the minutes. Approved 7:0 4. Review and comment on the draft Comprehensive Plan Amendment – Staff de Geus started the discussion on this item referring to last months Parks and Recreation Commission meeting when this was discussed with the Commission. It was originally intended to have the ad hoc committee come back with a summary of changes, but they were not able to meet therefore it is the intent for it to be discussed with the whole commission tonight staff de Geus said. He also spoke on the timeline and the next steps for the plan. The comments from the Commission tonight will be reviewed by staff and included and updated and then the draft with the changes will be reviewed by the Planning and Transportation Commission and then to brought to Council in the Summer. The Commission provided their comments. APPROVED February 28, 2012 Draft Minutes 3 Commissioner Losch commented on page 3 Goal 2 – Not sure how we would tackle this strategically specifically with private partnerships. Commissioner Crommie commented on C3.3 and C.47 Consider adding language recognizing the value of community gardens Add “different abilities:” where appropriate ex C2.8 Commissioner Hetterly commented on page 17, C4.7.3 would like to make sure the word athletic facility was included somehow. On page 13 C3.2.5 would like to include the word “ongoing” in the sentence “Conduct ongoing comprehensive analyses…” Page 14 C3.4 – insert the word and athletic with existing park facilities. Commissioner Ashlund commented on page 14-15 accessibility, would like to see the language revised and on C3.9.2 – change it to read “increase the percentage of accessibility” Commissioner Walsh commented on wanting more information included on expanding recreational opportunities within parks. Possible area would be C4 “Planning for the future” Staff de Geus encouraged the Commissioners to email him with other comments if they weren’t included in this discussion. 5. Review and comment on the revised Bicycle Pedestrian Master Plan update – Jaime Rodriguez, Chief Transportation Officer for the City spoke on the latest updates to the Draft Bicycle Pedestrian Master Plan which incorporated the comments and suggestions from the last time the Plan came before the PARC. It also included comments from the other stakeholders, PABAC, Planning and Transportation Commission, and from the outreach meetings. He also informed the commission that Planning and Transportation plan on holding another Public meeting in March to allow the public a whole month to provide input to the Plan. Public Comment Heather Rosmarin – Spoke to the Commission on the concern over the safety of bicyclists and pedestrians who use West Bayshore Road between San Francisquito Creek Bridge and Edgewood Plaza. She came before the Commission to encourage Planning and Transportation to include this area in the Bicycle Pedestrian Master Plan. Commissioner Crommie and Hetterly members of the Urban Creeks and Trails ad hoc committee presented their feedback on the Draft Bicycle and Pedestrian Master Plan to the Commission and Chief Transportation Office Jaime Rodriguez. After reviewing the document they had some questions that needed some clarification (see attached) Mr. Rodriguez answered what he could and said he would look into what he didn’t have answers to. The Commission then was given time for questions and comments. APPROVED February 28, 2012 Draft Minutes 4 Commissioner Ashlund commented on a concern about a path that enters Mitchell Park from Charleston that has had some vehicles mistake it for a road. Commissioner Losch provided his input on ensuring that it is important to have connectivity within surrounding communities. He also added that when prioritizing Planning and Transportation should consider focusing on the higher density traffic areas. Commissioner Markevitch commented that it would have been helpful to have a summary of what changes occurred to the Plan from last year to now. She also suggested that the word “traffic calming” should stay consistent throughout the document, as there were different words used meaning the same. She had a question related to the connection from Jordan School onto Newell. Council Liaison Espinosa reiterated what Commissioner Markevitch had said on providing a summary. With documents of this size it is helpful to have a direct form of information to help with understanding the changes for Council and the public. Commissioner Walsh made a motion to approve the plan. Commissioner Markevitch remarked that she would not be voting “Yes” on the plan due to the fact that in her reading of the large document she had found too many things that needed clarification for her to vote with a “Yes”. Motion: The Parks and Recreation Commission recommend to Council that they approve the Bicycle and Pedestrian Master Plan as revised and presented to the Commission on February 28, 2012. Approved: 6:1 (Markevitch) 6. Parks and Recreation Commission Ad Hoc Committee Updates – 1. Palo Alto Municipal Golf Course reconfiguration project – Chair Lauing spoke on the item – Next step: Finance committee on March 6th. A summary was provided on what had transpired from the study session that occurred with the Council by staff de Geus. An expansive outreach has taken place related to this project staff de Geus said. There was strong support for the Golf Course. Staff de Geus added that the presentation and questions are available online at www.cityofpaloalto.org/golf. There were 4 options A, D, F, and G that were presented for review, the cost ranged from 3.5million – 8 million. Council Liaison Espinosa provided information on the Council’s position, and remarked that this will have to have decision now. 2. Evaluate staff recommendations to place limits on amplified sound at Lytton Plaza. Chair Lauing reported that there is another upcoming meeting to discuss this issue and that it will probably be coming back to the Commission next month. 3. Urban Creeks and Trails APPROVED February 28, 2012 Draft Minutes 5 Commissioner Hetterly reported that the main focus had been the Bicycle and Pedestrian Master Plan. There was discussion on not continuing with the committee, and decided that it will be utilized when the need comes up in this area. 4. Activities and Resources for High School students during non-school hours Commissioner Walsh said there was nothing to report. V. COMMENTS AND ANNOUNCEMENTS 1. Commissioner Walsh asked on why are there so many Geese at Greer Park. Staff de Geus said he would check with Daren Anderson. 2. March 6th, Ethics training 3. Yak attack coming up. 4. Commissioner Crommie remarked on the Mayors address and announced that there is going to be a ping pong contest within the neighborhoods “Mayors Challenge”. 5. Senior Games coming up – End of March beginning of April. Volunteers always needed. 6. Magical Bridge outreach meeting on March 17th. 7. March 17th concert at JLS. VI. TENTATIVE AGENDA FOR FEBRUARY 28, 2012 MEETING 1. Golf Course Project – Action 2. Athletic Fields 3. Lytton Plaza VII. ADJOURNMENT Adjourned at 9:30pm City of Palo Alto (ID # 2849) City Council Staff Report Report Type: Consent Calendar Meeting Date: 7/23/2012 July 23, 2012 Page 1 of 5 (ID # 2849) Summary Title: 564 University ROLUA Title: Approval of a Record of Land Use Action for the Reconstruction of the Historic Residence at 564 University Avenue From: City Manager Lead Department: Planning and Community Environment Recommendation The Historic Resources Board (HRB) and staff recommend that the City Council approve the proposed Record of Land Use Action (Attachment A) determining that the proposed reconstruction, rehabilitation and restoration project meets the required two-part finding provided in Municipal Code Subsection 16.49.090(a)(4)(ii) of the Historic Preservation Ordinance for rectifying the unauthorized deconstruction of the Historic Inventory Category 2 downtown house at 564 University Avenue. Background In 1980 the City Council approved the Historic Inventory, which comprised approximately 500 buildings as the most significant historic structures in Palo Alto. The house at 564 University was included as a Category 4 building for its style and its high level of integrity. Significance of 564 University Avenue The 1904 Colonial Revival house has contributed a powerful presence on University Avenue that dominated the surrounding commercial buildings. Features that contributed to this effect were the broad, overhanging second floor that was dramatically enhanced by projecting square end bays, the full-width front porch supported by regularly spaced classical columns, and the large wide-eave dormer at the center of the pyramidal hipped roof. The house represents an uncommon Bay Area variant of the Colonial Revival residential style. The Colonial Revival style in general is significant because it is a transitional style that developed as a simplifying reaction to the preceding ornate Queen Anne style and included classical design elements. The structure was built as a rooming house and provided moderate and lower income residents with a convenient location along the streetcar route on University Avenue; this type of housing for short-term renters was important to the early social history of Palo Alto. The house is also significant as the last residential building remaining in the commercial zone of University Avenue. July 23, 2012 Page 2 of 5 (ID # 2849) The 2007 Designation Reclassification In 2007, a previous owner submitted an application to reclassify the house as a Category 2 building on the Historic Inventory which would provide eligibility for a 2,500 square-foot historic Floor Area Bonus to accommodate a prospective restaurant tenant. In May 2007 the City Council, based on the recommendation of the HRB, reclassified the house as a Category 2 “Major Building” which is defined in the Historic Preservation Ordinance as follows: “’Major building’ means any building or group of buildings of major regional importance, meritorious works of the best architects or an outstanding example of an architectural style or the stylistic development of architecture in the state or region. A major building may have some exterior modifications, but the original character is retained.” The 2008 Floor Area Bonus Project In 2008 the previous owner submitted an application for a comprehensive rehabilitation of the historic house, which was required for the granting of the Floor Area Bonus that would allow construction of a new addition to the rear and conversion to a restaurant use. In June 2008 the application was approved by the Director of Planning and Community Environment based on the HRB recommendation. The building permit was issued in April 2009. The 2009 Unauthorized Deconstruction of the House During October 13-15, 2009, the contractor for the project, without informing the City and in violation of approved plans, removed the roof and second floor of the house as well as part of the first floor to facilitate installation of the approved steel structural system. The contractor placed the deconstructed historic materials in a storage unit in San Jose. Because of the historical importance of the Colonial Revival house to Palo Alto and the Bay Area, staff invoked a provision in the “Enforcement” section of the Historic Preservation Ordinance which allows unlawfully demolished or altered historic buildings in the downtown zone to be reconstructed provided that the HRB and City Council could make the finding that “the proposed work will effect adequate restoration and can be done with a substantial degree of success.” In October 2009 the property owner stated the intention to reconstruct the house to historic standards imposed by the City and requested the City to retain a historic consultant at the owner’s expense to help develop the reconstruction plan and to guide its implementation. The owner eventually sold the property to the current owners who have agreed to reconstruct the house consistent with all previous approvals and applicable regulations. Project Description The project proposes to use the deconstructed historic materials to accurately reconstruct the house to its appearance before the unauthorized deconstruction, and to complete, in revised form, the previously approved rear addition. The reconstruction plans and conditions of July 23, 2012 Page 3 of 5 (ID # 2849) approval required to fulfill the project description are complex and detailed; the reconstruction plans were developed over a two-year period. Discussion The Historic Resources Board and staff have concluded that the proposed project will produce an accurate reconstruction of the house. The two key elements that are expected to produce a successful outcome are the participation of the City’s historic consultant as a member of the construction team and the extensively detailed reconstruction plans that appear to resolve every known issue involving the exterior features and dimensions of the house. The City’s Historic Consultant Staff was initially aware that City review of an accurate reconstruction of the house would require a level of construction expertise beyond that possessed by Planning Department staff. Consequently, staff retained Garavaglia Architecture, which had previously demonstrated expert knowledge of construction methodology and details for historic structures. As anticipated, the historic consultant has played a major advisory role in the development of numerous components of the reconstruction plans, the final version of which concluded an extensive dialogue between the consultant, the applicant team, and staff, which is available in the public record project file as memoranda, e-mails, letters, and reports. The foundation of the historic consultant’s approach to the project was presented in February 2010 in a formal report entitled “564 University Avenue: Reconstruction Assessment Report” which was distributed to the HRB for its June 20, 2012 meeting (Attachment B). The report contains the initial inventory of the deconstructed historic materials in storage, findings that the reconstruction can be successfully carried out, and a detailed plan for monitoring on site the process of reconstruction. The Reconstruction Plans Two types of information not typically included in project plans have been provided to assist in the reconstruction of the building: (1) narrative plan sheets containing rehabilitation and restoration methodologies and step-by-step treatment processes, and (2) numerous and detailed keynotes on the plan elevations and other drawings that describe the reconstruction methodology (Attachment C). The sheets of the reconstruction plans contain instructions to contractors how materials are to be treated, for example, the “wood siding installation notes” on the plan elevations. The extensive information on the rehabilitation plans is expected to significantly reduce the likelihood that errors or insufficiencies will occur during the process of reconstruction, as will the regular presence of the City’s historic consultant on site to monitor the details of the reconstruction. In addition, the project team has been asked to provide Requests for Information (RFIs) to the historic consultant when questions arise. Historic Resources Board Recommendation The Historic Resources Board (HRB), at its meeting on June 20, 2012, unanimously recommended that City Council find that the reconstruction project meets the findings cited in Municipal Code 16.49.090(a)(4)(ii) that the proposed work “will effect adequate restoration” and “can be done with a substantial degree of success.” The HRB did not add any further July 23, 2012 Page 4 of 5 (ID # 2849) conditions of approval to the project. The June 20, 2012 staff report is contained in Attachment D. The verbatim meeting minutes are contained in Attachment E. HRB Discussion Board Members commented that the applicant’s reconstruction plans appear to cover all the reconstruction issues in extensive detail. The HRB clarified details regarding the reassembly and installation of the siding and requested that the City provide the HRB with copies of the historic consultant’s reports to staff regarding the construction observation site visits. HRB Motion The HRB unanimously voted to recommend that the City Council find that the proposed reconstruction, rehabilitation and restoration project meets the required two-part finding in Municipal Code Subsection 16.49.090(a)(4)(ii): “Finding part 1: ‘the proposed work will effect adequate restoration’ because the City’s historic consultant has determined that adequate exterior historic fabric salvaged from the deconstruction is available in storage and has been systematically inventoried and, when reassembled according to the proposed reconstruction plans, will restore the historic house to a Category 2 level of integrity; Finding part 2: [the proposed work] ‘can be done with a substantial degree of success’ because the applicant has submitted comprehensive and detailed reconstruction plans developed in extensive consultation with staff and the City’s historic consultant. The City’s historic consultant will regularly monitor the construction of the project on site for consistency with the approved plans, for compliance with construction best-practices and for compliance with the Secretary’s Standards for Rehabilitation of Historic Buildings, subject to the project’s conditions of approval.” Public Comment No members of the public requested to speak at the June 20, 2012 HRB meeting and no members of the public submitted letters or e-mails to the City for distribution to the HRB regarding the project. Resource Impact The proposed improvements and enlargement of the former residential building as commercial office space will result in increases in property tax revenues compared to the previous residential use. Office employees will patronize downtown businesses and increase pedestrian activity on University Avenue. As stated above, the City has retained Garavaglia Architecture as the project consultant, at the expense of the applicant, and staff’s costs have been covered by application review fees. Policy Implications July 23, 2012 Page 5 of 5 (ID # 2849) The recommended project furthers the Comprehensive Plan policies and programs that encourage the preservation of Palo Alto’s historic buildings. Environmental Review The project has been found consistent with the Secretary of the Interior’s Standards for Rehabilitation and, therefore, is categorically exempt from the provisions of the California Environmental Quality Act (CEQA), per Section 15331. Attachments:  Attachment A: Record of Land Use Action (DOC)  Attachment B: 564 University Avenue: Reconstruction Assessment Report (PDF)  Attachment C: Hardcopy project plans to Councilmembers, Libraries and Development Center only (TXT)  Attachment D: June 20, 2012 Historic Resources Board Staff Report (PDF)  Attachment E: Verbatim Minutes of the HRB Meeting of June 20, 2012 (PDF) Prepared By: Russ Reich, Senior Planner Department Head: Curtis Williams, Director City Manager Approval: ____________________________________ James Keene, City Manager 1 ACTION NO. 2012-xx RECORD OF THE COUNCIL OF THE CITY OF PALO ALTO LAND USE ACTION FOR 564 UNIVERSITY AVENUE: HISTORIC REVIEW APPLICATION, 10PLN-00218, (STEVE SCHLOSSARECK, APPLICANT) On July 16, 2012, the Council of the City of Palo Alto approved a request to reconstruct a property listed on the Palo Alto Historic Inventory as a Category II historic resource that was unlawfully deconstructed, making the following findings, determination and declarations: SECTION 1. Background. The Council of the City of Palo Alto (“City Council”) finds, determines, and declares as follows: A. On June 14, 2010, George Espinola, on behalf of Aida Merrill, owner, applied for major Historic Review regarding a proposed reconstruction of an unlawfully deconstructed Historic Inventory Category 2 house at 564 University Avenue (the “Project”). On September 21, 2011 a subsequent owner, Steve Schlossareck, on behalf of RSR Capital, LLC, became the applicant for the Project. B. The Project proposes to accurately reconstruct, using original materials stored off site, the historic house to its previous appearance before the unauthorized deconstruction. The review process for the Project includes a two- part finding cited in Municipal Code subsection 16.49.090 (a) (4) (ii): 1. “The proposed work will effect adequate restoration,” and 2. [The proposed work] “can be done with a substantial degree of success.” C. Following staff review, the Historic Resources Board (HRB), at a duly noticed hearing on June 20, 2012, reviewed the Project reconstruction plans and recommended approval based on the Findings cited in Section 3 of this Record and subject to the conditions cited in Section 4. SECTION 2. Environmental Review. The project is categorically exempt from the California Environmental Quality Act (“CEQA”) Guidelines, per section 15331. Attachment A 2 SECTION 3. Findings for Approval. Consistent with the June 20, 2012 the Historic Resources Board recommendation for approval, the City Council finds as follows: 1. “The proposed work will effect adequate restoration” because the City’s historic consultant has determined that adequate exterior historic fabric salvaged from the deconstruction is available and has been systematically inventoried and, when reassembled according to the proposed reconstruction plans, will restore the historic house to a Category 2 level of integrity;” and 2. [The proposed work] “can be done with a substantial degree of success” because the applicant has submitted comprehensive and detailed reconstruction plans developed in extensive consultation with staff and the city’s historic consultant. The city’s historic consultant will regularly monitor the construction of the project on site for consistency with the approved plans, for compliance with construction best practices and for compliance with the Secretary’s Standards for Rehabilitation of Historic Buildings, subject to the Project’s conditions of approval. SECTION 4. Conditions of Approval. Planning Division 1. The historic windows of the project shall all be rehabilitated according to the recommendations under the heading “Windows” on Plan Sheet A-004, and according to the recommendations under the headings “Window Restoration Process” and “Window, Door, and Trim Restoration—Damaged Pieces Replacement” and “Methods for Removing Paint” on Plan Sheet A-005, and according to the recommendations under the heading “Windows” on page 44 of the report “564 University Avenue: Reconstruction Assessment Report” by Garavaglia Architecture, February 26, 2010, with reference as needed to National Park Service Preservation Brief 9, “The Repair of Historic Wooden Windows,” and National Park Service Preservation Brief 10, “Exterior Paint Problems on Historic Woodwork.” 2. The historic beveled lap siding shall be reassembled and installed on the historic house according to the recommendations under the heading “Wood siding installation notes” on Plan Sheets A-106, A-107, and A-108, and with reference to Plan Sheets A-112, A-113, and A-114 (“Historical Materials Installations”), and according to the recommendations under the heading “Siding” on pages 43-44 of 3 the report “564 University Avenue: Reconstruction Assessment Report” by Garavaglia Architecture, February 26, 2010, with reference as needed to National Park Service Preservation Brief 10, “Exterior Paint Problems on Historic Woodwork.” 3. The roof and three dormers of the historic house shall be rebuilt and rehabilitated according to the recommendations under the heading “Roof and Dormer” on Plan Sheet A-004, with reference to Plan Sheets A-112, A-113, and A-114 (“Historical Materials Installations”). 4. Trim shall be reinstalled and rehabilitated according to the recommendations under the heading “Wood Elements” on Plan Sheet A-004, and under the heading “Window, Door, and Trim Restoration—Damaged Pieces Replacement” on Plan Sheet A-005, and according to the recommendations under the heading “Decorative features (columns, dentil molding, soffits, trim, etc.)” on page 44 of the report “564 University Avenue: Reconstruction Assessment Report” by Garavaglia Architecture, February 26, 2010. 5. The structural system design shall maximize retention of and be sensitive to the existing remaining fabric (including stored materials) and allow the overall design and form of the historic building to be reconstructed” as cited on page 41 of the report “564 University Avenue: Reconstruction Assessment Report” by Garavaglia Architecture, February 26, 2010. 6. If the historic front entry door hardware is proposed for replacement, the style, color, and finish of the proposed new hardware shall be reviewed by the Historic Preservation Planner. Preservation of the historic hardware is recommended. 7. The style, color, and finish of the handrails of the front entry steps shall be reviewed by the Historic Preservation Planner. 8. The HRB and ARB subcommittees shall review a brush-out of the approved yellow main wall color of the historic house in the field prior to the application of paint to the house. 4 9. The Historic Preservation Planner shall review the fixture designs and materials and bulb types of any exterior lighting that may be proposed during the course of the project. 10. No demolition or permanent removal of significant historic fabric that is not included in the project approval shall be carried out in any amount for any reason except with written permission by the Department of Planning and community Environment. 11. The 2007 California Historical Building Code shall be applied to all eligible aspects of the historic reconstruction of the building exterior and interior when needed to preserve character-defining features (correction by staff after HRB meeting). 12. The Director of Planning’s project approval letter, including the approved historic conditions, shall be printed on one of the initial sheets of the building permit plan set (final construction plans) 13. The ten Secretary of the Interior’s Standards for Rehabilitation shall be printed on one of the initial sheets of the building permit plan set (final construction plans). 14. The historical information on Sheets A-004 and A-005 of the HRB “Historic House Reconstruction” plans shall be printed on one of the initial sheets of the building permit plans. 15. The Historic Preservation Planner shall review the building permit plan set for consistency with the Director of Planning’s approval based on the recommendation of the Historic Resources Board. 16. The Historic Preservation Planner shall participate in the Planning Department’s final inspection of the completed project and will use the final report of Garavaglia Architecture acting as reconstruction observation agency as part of the final inspection. PASSED: AYES: 5 NOES: ABSENT: ABSTENTIONS: ATTEST: APPROVED: _________________________ ____________________________ City Clerk Director of Planning and Community Environment APPROVED AS TO FORM: ___________________________ Sr. Deputy City Attorney PLANS AND DRAWINGS REFERENCED: 1. Those plans prepared by Premier Design titled “Historic House Reconstruction: 564 University Avenue, Palo Alto, CA 94301,” consisting of fifty-seven pages, dated May 1, 2012, and received June 15, 2012. 564 University Avenue Reconstruction Assessment Report Prepared for: The City of Palo Alto Prepared by: Garavaglia Architecture, Inc. 26 February 2010 Innovating Tradition 564 UNIVERSITY AVENUE Reconstruction Assessment 564 UNIVERSITY AVENUE Reconstruction Assessment TABLE OF CONTENTS INTRODUCTION..................................................................................................................1 PROJECT REQUIREMENTS..................................................................................................7 CONDITIONS BEFORE DEMOLITION..............................................................................19 EXISTING CONDITIONS...................................................................................................23 EVALUATION OF INTEGRITY...........................................................................................33 FINDINGS..........................................................................................................................35 RECOMMENDATIONS.......................................................................................................41 SUMMARY.........................................................................................................................45 APPENDIX A: DRAWINGS...............................................................................................A1 APPENDIX B: FIELD NOTES / INVENTORY.....................................................................B1 564 UNIVERSITY AVENUE Reconstruction Assessment 564 UNIVERSITY AVENUE Reconstruction Assessment 1 INTRODUCTION EXECUTIVE SUMMARY Garavaglia Architecture, Inc. is under contract by the City of Palo Alto to examine the current state of the partially deconstructed historic building at 564 University Avenue. The proposed project consists of a historic building and a new addition. An objective review is needed to determine if the integrity of the historic building can be returned to a Palo Alto Historic Category 2 status, and thus retain the benefits and exemptions that previously had been granted to the project based on this status. It is the objective of this report to determine specifically if 1) enough of the historic fabric of the building can actually and technically be reassembled with the available removed and salvaged materials and 2) if the Palo Alto Historic Category 2 status can be soundly returned to the reassembled building. Garavaglia Architecture, Inc. reviewed City and Architect provided pictures, drawings, field notes, inventory and correspondence and observed site conditions and the materials salvaged in the storage unit. Garavaglia Architecture, Inc. staff then calculated the amount of exterior cladding material needed to reconstruct the building from the drawings. These calculations along with observed verifications are contained in Appendix B: Field Notes/Inventory. Based on the amounts of materials present, the quality and detail of available documentation including field measurements taken prior to deconstruction and the condition of the materials available for reuse, Garavaglia Architecture, Inc. finds that there is the potential to reassemble the historic fabric of 564 University Avenue using original materials. If the building is carefully reconstructed to its original configuration and appearance using existing materials, the remaining structural framing and recommended treatment methods, the building will be able to retain the integrity required to uphold its Historic Inventory Category 2 listing as a historic resource. The City of Palo Alto will be advised to provide conditions of approval based on the recommendations in this report. It is advised that the City require a Reconstruction Plan responding to these conditions. As a component of the Reconstruction Plan, review by an objective, third-party reconstruction observation agency will be needed during the construction process to ensure that the reconstruction project proceeds in a manner that will return the building to the status of a Category 2 resource, and thus retain for the project the benefits and exemptions that previously had been granted based on this status. Elements of the proposed plan that were approved for removal and/or replacement as part of the HRB staff review and conditions of approval of the proposed project (Historic Resources Board Staff Report dated May 7, 2008) could be restored to original configurations to further improve the historic integrity of the building if further, ongoing review processes determine 564 UNIVERSITY AVENUE Reconstruction Assessment 2 that the integrity level has been excessively compromised. Suggested improvements include the reconstruction of the windows on the north wall that were approved for removal, and the reconstruction of the brick chimney in lieu of a new window installation. Following is a summary of the main recommendations: • Any further demolition or destruction of historic material should absolutely be prohibited. • Final determination that the recommendations and any resulting conditions have been met should be reserved until the completion of the project. • It is imperative that the contractor and other involved parties become familiar with the recommendations and fully understand the resulting conditions. • Because a substantial portion of the building must be reassembled from the framing to the details, the procurement of as many field measurements, notes and observations as possible should be pursued. These dimensions and sketches should be assembled into a working set of architectural drawings (similar to that of a new building) and be fully coordinated with the other disciplines. • The structural drawings should be reconceived to coordinate with the current state of the building. The structural system design shall maximize retention of and be sensitive to the existing remaining fabric (including stored materials) and allow the overall design and form of the historic building to be reconstructed. • It is advised that the City provide conditions of approval and require a Reconstruction Plan that includes documentation of how the conditions will be met, drawings and specifications and a reconstruction observation plan. • An objective, third-party reconstruction observation agency should assist the City of Palo Alto in the reconstruction of the historic building with the objective of reassembling the historic fabric. 564 UNIVERSITY AVENUE Reconstruction Assessment 3 PROJECT BACKGROUND 564 University Avenue comprises a two-and-a-half story Colonial Revival house built in 1904 that is listed on the City's Historic Inventory as a Category 2 “Major Building” resource. In early 2008 the Owner applied for Historic Resource Board (HRB) and Architectural Review Board (ARB) review of a major rehabilitation and expansion of the property for use as the third location in California of a distinguished restaurant currently in San Francisco and Beverly Hills (Crustacean). HRB and ARB approvals of the project were in place in the summer of 2008. The Owner then applied for the building permit on September 19, 2008 and the permit was issued on April 22, 2009. In October 2009, the project building team concluded that the second floor and attic of the house would need steel framing to provide a structurally safe building for an intensive restaurant use. The building team also concluded that the most cost effective and technically feasible method for installing the steel framing was to completely deconstruct the second floor, attic and roof and to catalogue and store the removed historic materials. However, the building team did not notify the City of this deconstruction plan and did not obtain an approved revision to the building permit to cover the work. Instead the building team carried out the deconstruction without City approval on October 13-15, 2009. This action violated the conditions of the permit which required adherence to approved construction plans that mandated the retention of the roof and exterior walls of the house. Therefore, the City necessarily classified the deconstruction as an unlawful alteration of a Downtown Category 2 historic property, and issued a "Stop Work" notice on October 16, 2009. On October 22, 2009 the property owner met at City Hall with the Chief Planning and Transportation Official and the Historic Preservation Planner, and gave assurance that her goal is to restore the historic house in its original form, dimensions, and materials, and to ensure that the great majority of the building's exterior will be clad in original materials and features as shown on the approved permit plans. This report is intended to establish whether this goal is feasible given the amount and condition of the removed historic materials, and the level of documentation available to inform a reconstruction of the building. PROJECT DESCRIPTION Original Project Description The following description is quoted from the March 13, 2008 project submission to the Palo Alto Planning Department, Historic Resources Board and Architectural Review Board, which included a request for a historic Floor Area Bonus based on rehabilitation of a Category 2 building. This submission was made by Architect Ann Hawkinson, on behalf of the building’s owner. 564 UNIVERSITY AVENUE Reconstruction Assessment 4 Scope of Work Project includes the historic rehabilitation of a Colonial Revival residential building that is listed on the City’s Historic Inventory [as a] Category 2 [resource] and is located in the downtown CD-C(P) zone district. The proposed project also includes relocating the existing building forward on the site, construction of a new rear addition, and a new comprehensive landscape plan with a courtyard. The building will be seismically upgraded and converted to a full service restaurant. In addition, there will also be work on the City sidewalk to remove an existing curb cut and replace it with a new curb and gutter per City standards. Any sidewalks that are broken or damaged will be replaced as required by the City of Palo Alto. At the rear of the site, work will be done on the City Right-of-Way to increase the width of the existing dumpster path adjacent to the Protected Redwood Trees. New planting will be added to the planter at the Right-of-Way below the trees. A bike rack is also proposed on the sidewalk at the front of the site to match the existing bike racks on University Avenue. Moving the Building Forward We initially proposed to move the building forward on the site. The proposed relocated building is positioned to continue to maintain the feeling of the front yard of the residential structure. It will also allow enough space for an addition to be added on the back of the historic structure and farther away from the “Protected” Redwood tress on the City easement at the rear of the site. This is necessary to prevent damage to the trees. The building will be closer to University Avenue and therefore more engaged with the City’s pedestrian activities. The historic building will also be a more visible part of the University Avenue streetscape when looking down University Avenue… We also plan to move the historic building farther away from the north (left) side of the property line so that the project will meet present day building setback and fire safety requirements… Current Description of the Building As of February 2010, the building remains deconstructed and the rear nine feet of the building has been demolished. According to the City of Palo Alto, a work permit has been issued by the City to continue working on the new addition. The historic building has been covered with tarps to protect against the elements. Following is a description of the site observed on the December 2nd, 2009 site visit by Garavaglia Architecture, Inc.: • A new foundation has been poured and the historic building has been moved forward on the site and placed on the foundation • The remains of the historic building on site include the first floor framing, first and second floor subfloor and exterior lap siding on the west (facing University Avenue) elevation 564 UNIVERSITY AVENUE Reconstruction Assessment 5 • The new addition at the rear of the property is currently under construction • All porch elements are completely removed • First floor framing is intact except for approximately 9’-0” that has been removed from the rear of the house, including six (6) first and second floor window openings • Exterior siding remains on the first floor west facade and partially on the south bay window • Several built-ins and stairway still remain on the first floor • Subfloor of second level serving as “roof” and used for storage of materials • Materials stored under tarps, collecting water (second level framing and some finish flooring being stored) • All windows and exterior doors removed METHODOLOGY The following is a general outline of process and methodology performed by Garavaglia Architecture, Inc. to achieve the objectives of this report: • Pictures, drawings, field notes, inventory and correspondence provided by the City and Architect was reviewed • A site visit was conducted on December 2, 2009 to verify and document current state and conditions, conditions noted on drawings, field notes and digital photography • A site visit was conducted to storage unit on December 2nd afterwards to verify types of materials salvaged, how materials were stored, cataloged, extent of materials stored, and general conditions of materials • An inventory of salvaged materials was received (as provided by Owner); calculations utilizing the working drawings (as provided by the City) determined the amounts of exterior materials needed; then a comparison was made of recorded amounts of salvaged materials with anticipated pre-demolition amounts based on calculations derived from drawings; this document can be found in Appendix B: Field Notes/Inventory • Drawings sets reviewed include: - Planning Submittal dated April 21, 2008 - Building Permit Submittal approved March 30, 2009 564 UNIVERSITY AVENUE Reconstruction Assessment 6 • Analysis of any differences in contractor’s inventory and calculated numbers • Review of historic resource and project requirements • Determination of findings with recommendations 564 UNIVERSITY AVENUE Reconstruction Assessment 7 PROJECT REQUIREMENTS CONDITIONS OF APPROVAL The following conditions of approval were recommended for the project on May 7, 2008 by the Palo Alto Historic Resources Board and approved by the Planning Division. The findings and recommendations in this report do not intend to add to, subtract from or modify the original conditions. 1. The project shall be constructed in substantial conformance with plans dated April 21, 2008 which are on file in the City of Palo Alto Planning Division, except as modified by the conditions below. 2. The State Historical Building Code shall be applied to the rehabilitation of the historic building when needed to preserve character-defining features. 3. The rehabilitation, restoration, and new construction at 564 University Avenue shall be based on the recommendations on pages 23-26 of the submitted “Focused Historic Structure Report,” authored by Architectural Resources Group, Inc., and dated February 2008 (except that compliance with the “Recommendations for Interior Materials and Finishes Treatment” shall be voluntary), and also the recommendations of “Preservation Briefs” #9 and #10 that are attached to the “Focused Historic Structure Report.” 4. Subsequent to relocating the historic building forward on the site, the front porch entry stairs shall be reconstructed to include five risers if feasible, as determined by an HRB subcommittee of three Board members, and shall not include fewer than four risers. 5. Project materials and colors revised subsequent to the HRB review and recommendation shall be submitted to the Department of Planning for review by the Historic Preservation Planner and by an HRB subcommittee of three Board members. 6. The final designs and bulb types for project exterior lighting shall be submitted to the Historic Preservation Planner for review. 7. The Planning Department’s letters of project approval, including the approved conditions, shall be printed on the construction Plan Set. 8. The final construction Plan Set shall be submitted to the Historic Preservation Planner and an HRB subcommittee of three Board members for review for consistency with the recommendation of the Historic Resources Board. MUNICIPAL CODE REQUIREMENTS Zoning Ordinance: Historic Floor Area Bonus The project application for 564 University Avenue incorporates one of the City’s major historic preservation incentives, a 2,500 square-foot Floor Area Bonus which is not counted toward the maximum floor area allowed on the site, and which is exempt from normal parking requirements for floor area increases. In order to obtain a historic Floor Area Bonus a building must be located in the Downtown Commercial Zone District and must be designated to the Historic Inventory in Category 1 or 2 (which signify major historic resources). In addition, the 564 UNIVERSITY AVENUE Reconstruction Assessment 8 City must approve a Historic Rehabilitation Plan for the building based on a qualified Historic Structure Report and on the Secretary of the Interior’s Standards and Guidelines for Rehabilitation. In order for a historic Floor Area Bonus to remain in effect during the construction of the project, all ongoing project work must comply with the Secretary’s Standards and Guidelines for Rehabilitation, and the building must maintain the historic characteristics on which the Category 1 or 2 designation is based. Chapter 18.18 of the Municipal Code (Downtown Commercial CD District Regulations) provides in Section 18.18.070 the procedures and standards required for obtaining a historic Floor Area Bonus. Several subsections of 18.18.070 apply to this project. Ordinance Subsection 18.18.070(a)(3): Historic Rehabilitation Bonus A building that is in Historic Category 1 or 2, and is undergoing historic rehabilitation, but is not in Seismic Category I, II, or III, shall be allowed to increase its floor area by 2,500 square feet or 25% of the existing building, whichever is greater, without having this increase count toward the FAR, subject to the restrictions in subsection (b). Such increase in floor area shall not be permitted for buildings that exceed a FAR of 3.0:1 in the CD-C subdistrict or a FAR of 2.0:1 in the CD-N or CD-S subdistricts, except as provided in subsection (5). Ordinance Subsection 18.18.070(b)(6): Restrictions on Floor Area Bonuses For sites in Historic Category 1 or 2, historic rehabilitation shall conform to the Secretary of the Interior's "Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings" (36 CFR §67,7). Ordinance Subsection 18.18.070(d): Procedure for Granting Floor Area Bonuses The floor area bonuses described in subsection (a), except the bonus described in subsection (a)(1), shall be granted in accordance with the following requirements: (1) An application for such floor area bonus(es) must be filed with the director of planning and community environment in the form prescribed by the director, stating the amount of such bonus(es) applied for, the basis therefor under this section, and the extent to which such bonus(es) are proposed to be used on-site and/or for transfer. An application for floor area bonus for rehabilitation of a Category 1 or 2 historic building shall include a historic structure report, prepared by a qualified expert, retained by the city, at the applicant's expense, in accordance with the standards and guidelines of the California State Office of Historic Preservation. It shall also include a plan for rehabilitation; if any part of the existing building is proposed to be removed or replaced, the historic rehabilitation project plans submitted for review shall clearly show and identify any and all material proposed for removal or replacement. (2) The city may retain an expert in historic rehabilitation or preservation, at the applicant's expense, to provide the city with an independent evaluation of the project's conformity with the Secretary of the Interior's "Standards for Rehabilitation and Guidelines for Rehabilitation Historic Buildings." 564 UNIVERSITY AVENUE Reconstruction Assessment 9 (3) The historic resources board shall review the historic structure report, the historic rehabilitation project plans, and, if required, the expert independent evaluation of the project, and make a recommendation to the director of planning and community environment on the project's conformity with the Secretary of the Interior's "Standards for Rehabilitation and Guidelines for Rehabilitation Historic Buildings." (4) Upon completion of such an application, written determination of the sender site's eligibility for bonus(es) shall be issued by the director of planning and community environment or the director's designee, based upon the following: (A) In the case of a floor area bonus for seismic rehabilitation, the chief building official has made a determination that the project complies with or exceeds the analysis standards referenced in Chapter 16.42 of this code; (B) In the case of the floor area bonus for historic rehabilitation of a building in Historic Category 1 or 2, the director, taking into consideration the recommendations of the historic resources board, has found that the project complies with the Secretary of the Interior's "Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings" (36 CFR §67,7); and (C) In the case of a bonus for both seismic and historic rehabilitation that is proposed to be use on-site, the city council has made the findings set forth in subsection (b)(8) of this section. (e) Certification of FAR Bonuses The floor area bonuses described in subsection (a), except the bonus described in subsection (a)(1), may be used on the site of the proposed seismic and/or historic rehabilitation project and a building permit issued therefor only upon satisfaction of all the requirements in subsection (d) above. Upon determining that the project has been completed as approved, or in the case of city-owned buildings upon completion of all of the requirements of Chapter 18.28, the director or director's designee shall issue a written certification which shall state the total floor area bonus utilized at the site (in the case of buildings in the CD-Commercial Downtown District), and the amount (if any) of remaining floor area bonus which is eligible for transfer to another site pursuant to the provisions of this chapter. The certification shall be recorded in the office of the county recorder and a copy shall be provided to the applicant. As a condition precedent to being credited with a historic rehabilitation floor area bonus whether for use on-site or for transfer, the owner of the site shall enter into an unsubordinated protective covenant running with the land in favor of the city (or, if the city is the owner, in favor of a qualified and disinterested third party if the property is to be rehabilitated after the sale of the transfer of development rights), in a form satisfactory to the city attorney, to assure that the property will be rehabilitated and maintained in accordance with the Secretary of Interior's Standards for Rehabilitation of Historic Buildings, together with the accompanying 564 UNIVERSITY AVENUE Reconstruction Assessment 10 interpretive Guidelines for Rehabilitation of Historic Buildings, as they may be amended from time to time. For city owned buildings subject to a long term lease of ten or more years where the rehabilitation work is to be performed by the lessee, this protective covenant shall be in favor of the city. (Ord. 5038 § 1, 2009: Ord. 4964 § 15, 2007: Ord. 4923 § 4 (part), 2006) All references to “historic rehabilitation” in Municipal Code Chapter 18.18 (Downtown Commercial CD District Regulations) are referred to the definition of “historic rehabilitation” found in Chapter Section 18.18.030. This definition applies to this project. Ordinance Section 18.18.030: Definitions (b) As used in this chapter, "historic rehabilitation" means returning a property to a state of utility, through repair or alteration, which makes possible an efficient contemporary use while preserving those portions and features of the property which are significant to its historic, architectural, and cultural values. "Historic rehabilitation" shall remedy all the known rehabilitation needs of the building, and shall not be confined to routine repair and maintenance as determined by the director of planning and community environment. Historic Preservation Ordinance Chapter 16.49 of the Municipal Code (Historic Preservation Ordinance) provides procedures for the designation and treatment of historic resources in Palo Alto. Within this chapter, several sections are most relevant to this project. Ordinance Section 16.49.050: Exterior alteration of historic structures. (a) Review Process. All applications for a building permit for exterior alteration to any historic structure/site in the downtown area or a significant building elsewhere in the city, new construction on a parcel where there is currently a historic structure in the downtown area or a significant building elsewhere in the city, or such application for construction within a historic district shall be reviewed as follows: (1) Review Bodies. (A) Architectural review approval pursuant to Chapter 18.76 (Permits and Approvals) is required for any historic structure/site in the downtown area and any significant structure/site elsewhere in the city, other than single-family and duplex residences. The architectural review board shall refer applications to the historic resources board for a recommendation on the proposed alteration of the structure. (B) The historic resources board shall review applications involving single-family and duplex residences which are historic structures/sites in the downtown area or which are significant buildings elsewhere in the city. Compliance of the property owner with the recommendations shall be voluntary, not mandatory. 564 UNIVERSITY AVENUE Reconstruction Assessment 11 (C) The planning staff may review and approve minor exterior alterations pursuant to guidelines which the historic resources board may adopt. Minor exterior alterations are those alterations which the director of planning and community environment or his/her designee determines will not adversely affect the exterior architectural characteristics nor the historical or aesthetic value of the historic structure, its site or surroundings. (2) Time Limit. Recommendations of the historic resources board on alterations to a historic single-family or duplex residence shall be rendered within thirty days of the date of referral by the architectural review board or the chief building official. Failure to provide a recommendation within the time limit shall cause an application for a commercial or multiple-family use to be returned to the architectural review board, and a single-family or duplex application to be forwarded to the chief building official for consideration of issuance of a building permit. (b) Standards of Review. In evaluating applications, the review bodies shall consider the architectural style, design, arrangement, texture, materials and color, and any other pertinent factors. The prime concern should be the exterior appearance of the building site. (1) On buildings not in a historical district, the proposed alterations should not adversely affect the exterior architectural characteristics nor the historical or aesthetic value of the building and its site. (2) In historic districts, the proposed alterations should not adversely affect: (A) The exterior architectural characteristics nor the historical, architectural or aesthetic value of the building and its site; or (B) The relationship of the building, in terms of harmony and appropriateness, with its surroundings, including neighborhood structures; (C) Appeals. Any interested party may appeal to the city council the decision of the architectural review board not to recommend approval of an application for a building permit to alter the exterior of any historic structure in the downtown area, or a significant structure elsewhere in the city or in a historic district. Such appeal shall be processed in accordance with Chapter 18.78 (Appeals). (Ord. 4826 §§ 22, 23, 2004: Ord. 3721 § 1 (part), 1986) Ordinance Section 16.49.060: Demolition of significant buildings in the downtown area. (a) Permit and Findings. No permit shall be issued to demolish or cause to be demolished all or any part of a significant building in the downtown area unless: 564 UNIVERSITY AVENUE Reconstruction Assessment 12 (1) The city council determines that under the historic designation, taking into account the current market value, the value of transferable development rights, and the costs of rehabilitation to meet the requirements of the building code or other city, state or federal laws, the property retains no reasonable economic use; or (2) The chief building official or the fire chief, after consultation, to the extent feasible, with the department of planning and community environment, determines that an imminent safety hazard exists and that demolition of the building is the only feasible means to secure the public safety; or (3) The city council determines that demolition of the building will not have a significant effect on the achievement of the purposes of this chapter. (b) Application for a Permit to Demolish. An application for a permit to demolish any significant building in the downtown area shall comply with Chapter 16.04 of the Palo Alto Municipal Code. In addition to the contents specified under Chapter 16.04, any application for a permit to demolish a significant building in the downtown area, on the grounds specified in Section 16.49.060(a)(1), shall contain any appropriate and relevant economic information which will enable the council to make the necessary determination. (c) Review of Application. (1) Historic Resources Board. Applications which are accepted as complete for a permit to demolish a significant building in the downtown area on the grounds specified in Section 16.49.060(a)(1) or (3) shall be placed on the agenda of the historic resources board for hearing and recommendation. If the historic resources board does not act on the application within thirty days of referral to it, the city council may proceed without a recommendation from the historic resources board. (2) City Council Hearing and Decision. Any application for permit to demolish a significant building in the downtown area on the grounds specified in Section 16.49.060(a)(1) or (3) shall be heard by the city council. Notice shall be given by mailed notice to all owners of property immediately adjacent to the property that is the subject of the application, and by publication at least once in a local newspaper of general circulation. The applicant shall have the burden of establishing that the criteria set forth in Section 16.49.060(a)(1) or (3) has been met. The council may approve, disapprove or approve the application with conditions, and shall make findings relating its decision to the standards set forth in Section 16.49.060(a). The decision of the council shall be rendered within thirty days from the date of the conclusion of the hearing. 564 UNIVERSITY AVENUE Reconstruction Assessment 13 (d) Permit to Move a Significant Building in the Downtown Area or in a Historic District. In reviewing an application for a permit to demolish a significant building in the downtown area or in a historic district on the grounds specified in Section 16.49.060(a)(1) or (3), the historic resources board may decide that the building may be moved without destroying its historic or architectural integrity and importance, and may recommend to the city council that the demolition permit be denied, but that a permit to relocate be processed, pursuant to Chapter 16.32 of this code. In that case, the time limits and notice requirements of Section 16.49.070(c) shall also be applicable. (Ord. 3721 § 1 (part), 1986) Ordinance Section 16.49.090: Enforcement. (a) Unlawful Alteration or Demolition. (1) Violation - Penalties. It is unlawful for a person or entity to demolish or cause to be demolished any significant building or portion thereof in the downtown area in violation of any of the provisions of this chapter. Any person or entity violating these provisions is guilty of a misdemeanor and, upon conviction of any such violation, such person shall be punishable by a fine of not more than one thousand dollars or by imprisonment for not more than six months, or by both such fine and imprisonment. (2) Civil Penalty. Any person or entity who demolishes a building or causes a demolition in violation of the provisions of this chapter may be liable civilly in a sum equal to the replacement value of the building or an amount in the court's discretion, not to exceed ten thousand dollars. (3) Injunctive Relief. The city attorney may maintain an action for injunctive relief to restrain a violation or cause, where possible, the complete or partial restoration, reconstruction, or replacement in kind of any building or site demolished, altered or partially demolished in violation of this chapter. (4) Restriction on Development. Alteration or demolition of a historic structure in violation of this chapter shall eliminate the eligibility of the structure's lot for any transfer of development rights, pursuant to the Palo Alto Comprehensive Plan, and such lot, if it is the site of an unlawfully demolished historic structure from which development rights have been transferred, shall not be developed in excess of the floor area ratio of the demolished structure for a period of twenty years from the unlawful demolition. A person or entity may be relieved of the penalties provided in this section if: (i) the unlawful alteration or demolition did not constitute a major alteration, as determined by the chief building official, or 564 UNIVERSITY AVENUE Reconstruction Assessment 14 (ii) as to an unlawful alteration, the person or entity restores the original distinguishing qualities and character of the building destroyed or altered. Such restoration must be undertaken pursuant to a valid building permit issued after a recommendation by the historic resources board and a finding by the city council that the proposed work will effect adequate restoration and can be done with a substantial degree of success.[emphasis added] (b) Failure to Abide by Maintenance Regulations. (1) Abatement. The procedures set forth in Chapter 16.40 of the Palo Alto Municipal Code governing unsafe, dangerous or substandard buildings, whether in commercial or residential use, shall be applicable to any violations of Section 16.49.080. (2) Misdemeanor. It is unlawful for any person or entity to fail to maintain any building in the downtown area designated as significant or contributory in violation of Section 16.49.080. Any such violation constitutes a misdemeanor punishable as set forth in Section 16.49.090(a)(1) above. Each day of violation constitutes a separate offense and may be separately punished. The chief building official and ordinance compliance inspector are authorized to exercise the authority in California Penal Code Section 836.5 and to issue citations for violation of Section 16.49.080. (3) Civil Penalty. Any person or entity who fails to maintain any building in the downtown area designated as significant or contributory in violation of Section 16.49.080 may be liable civilly in a sum not to exceed one thousand dollars. Each day of violation constitutes a separate offense for which a penalty may be assessed. (c) Remedies not Exclusive. The remedies provided by this section are not exclusive. (Ord. 3721 § 1 (part), 1986) PALO ALTO HISTORIC INVENTORY CATEGORIZATION/QUALIFICATIONS The City of Palo Alto's Historic Inventory lists noteworthy examples of the work of important individual designers and architectural eras and traditions, as well as structures whose background is associated with important events or trends in the history of the city, state, or nation. The City has adopted specific definitions for the categorization of properties on the Inventory. These definitions are used to classify buildings that are found to be significant at the local level. The Inventory is organized under the following four Categories (Municipal Code 16.49.020(b)): • Category 1 (Exceptional Building): "Exceptional building" means any building or group of buildings of preeminent national or state importance, meritorious work of the best architects or an outstanding example of the stylistic development of architecture in the United States. 564 UNIVERSITY AVENUE Reconstruction Assessment 15 An exceptional building has had either no exterior modifications or such minor ones that the overall appearance of the building is in its original character. • Category 2 (Major Building): "Major building" means any building or group of buildings of major regional importance, meritorious works of the best architects or an outstanding example of an architectural style or the stylistic development of architecture in the state or region. A major building may have some exterior modifications, but the original character is retained. • Category 3 or 4 (Contributing Building): "Contributing building” means any building or group of buildings which are good local examples of architectural styles and which relate to the character of a neighborhood grouping in scale, materials, proportion or other factors. A contributing building may have had extensive or permanent changes made to the original design, such as inappropriate additions, extensive removal of architectural details, or wooden facades resurfaced in asbestos or stucco. SECRETARY OF THE INTERIOR’S STANDARDS The Secretary of the Interior has developed a series of Treatments and Guidelines for dealing with historic properties. There are four types of treatments, each with their own very specific definitions, standards and guidelines for implementation: Preservation, Rehabilitation, Restoration and Reconstruction. Because the application for 564 University Avenue includes use of the historic Floor Area Bonus described in Municipal Code 18.18.070, the project rehabilitation plan is required by the Municipal Code to comply with the Secretary’s Standards and Guidelines for Rehabilitation. In addition, because the majority of the building has been illegally deconstructed and the rear portion demolished, retention of the Floor Area Bonus on which the project depends will require application of the Secretary’s Standards and Guidelines for Rehabilitation, in conjunction with periodic reviews by a reconstruction observation agency, to ensure reconstruction of the building to its former status as a Category 2 (“Major Building”) resource on the City’s Historic Inventory. Rehabilitation Rehabilitation is defined by the Secretary of the Interior as “the act or process of making possible a compatible use for a property through repair, alterations, and additions while preserving those portions or features which convey its historical, cultural, or architectural values.” This is the most widely used treatment as it allows for new uses in historical buildings with some alterations to accommodate those uses. It provides the most flexibility of the four treatments, however with this additional freedom of interpretation comes greater potential for damage. Careful consideration of all new uses and their impacts must be made, and consultation with a qualified historic preservation professional is always recommended. 564 UNIVERSITY AVENUE Reconstruction Assessment 16 There are ten standards to govern the implementation of Rehabilitation treatments. 1. A property will be used as it was historically or be given a new use that requires minimal change to its distinctive materials, features, spaces, and spatial relationships. 2. The historic character of a property will be retained and preserved. The removal of distinctive materials or alteration of features, spaces, and spatial relationships that characterize a property will be avoided. 3. Each property will be recognized as a physical record of its time, place, and use. Changes that create a false sense of historical development, such as adding conjectural features or elements from other historic properties, will not be undertaken. 4. Changes to a property that have acquired historic significance in their own right will be retained and preserved. 5. Distinctive materials, features, finishes, and construction techniques or examples of craftsmanship that characterize a property will be preserved. 6. Deteriorated historic features will be repaired rather than replaced. Where the severity of deterioration requires replacement of a distinctive feature, the new feature will match the old in design, color, texture, and, where possible, materials. Replacement of missing features will be substantiated by documentary and physical evidence. 7. Chemical or physical treatments, if appropriate, will be undertaken using the gentlest means possible. Treatments that cause damage to historic materials will not be used. 8. Archeological resources will be protected and preserved in place. If such resources must be disturbed, mitigation measures will be undertaken. 9. New additions, exterior alterations, or related new construction will not destroy historic materials, features, and spatial relationships that characterize the property. The new work will be differentiated from the old and will be compatible with the historic materials, features, size, scale and proportion, and massing to protect the integrity of the property and its environment. 10. New additions and adjacent or related new construction will be undertaken in such a manner that, if removed in the future, the essential form and integrity of the historic property and its environment would be unimpaired. 564 UNIVERSITY AVENUE Reconstruction Assessment 17 REVIEW PROCESS DESCRIPTION The project has been determined to be an unauthorized deconstruction and demolition of a Category 2 historic resource. In compliance with the provisions of Ordinance Section 16.49.090(a)(4), this report has been commissioned by the Owner under the City’s supervision. The findings presented herein are intended to inform decisions relating to the reassembly of the building using salvaged historic fabric. This report, along with the Reconstruction Plan recommended by this report, will be reviewed by the Historic Resources Board (HRB) as well as Planning staff as the first step in the City’s review and approval process for the reconstruction project. This review will require a recommendation from the HRB that the two findings for restoration of the original historic character of the building that are cited in Municipal Code Subsection 16.49.090(a)(4) of the Historic Preservation Ordinance have been met: 1. The proposed work will effect adequate restoration; 2. The proposed work can be done with a substantial degree of success. As this is a previously approved Floor Area Bonus project, the HRB must also recommend that the reconstructed building would satisfy the provisions for designation of historic resources in Category 2 set forth in Historic Preservation Ordinance Sections 16.49.020 and 16.49.040, and would be consistent with the original Conditions of Approval for the project. 564 UNIVERSITY AVENUE Reconstruction Assessment 18 564 UNIVERSITY AVENUE Reconstruction Assessment 19 CONDITIONS BEFORE DEMOLITION PRE-DEMOLITION PHOTOGRAPHS Following are pictures of the historic building as it is being prepared for construction: 1 - West Elevation before Demolition facing University Avenue 564 UNIVERSITY AVENUE Reconstruction Assessment 20 2 - South Elevation before Demolition, Note 3 - North Elevation before Demolition Partial Existing Chimney and Bay Window 4 - East (Rear) Elevation before Demolition 5 - Front Door before Demolition 564 UNIVERSITY AVENUE Reconstruction Assessment 21 6 - Column Brackets and Column Capital before Demolition 564 UNIVERSITY AVENUE Reconstruction Assessment 22 564 UNIVERSITY AVENUE Reconstruction Assessment 23 EXISTING CONDITIONS SITE The site is located along University Avenue in Palo Alto, California between Webster and Cowper Street. The site is located in a CD Downtown Commercial district along University Avenue, which is a frequently busy commercial thoroughfare for both vehicles and pedestrians. The site is a construction zone with chain link fencing along University Avenue to prohibit trespass. The new concrete foundation has been poured and the house has been moved forward towards University Avenue to its new location. Various materials are located on site including some salvaged material under tarps and new building materials. The construction of the new addition is underway at the rear of the site. A temporary walkway has been constructed in place of the removed porch and along the north side of the site to permit access to the historic building. There are various pieces of equipment located on the site including a construction crane. 7 - Bird's Eye View of Historic Building after Demolition - Oct. 17, 2009 BUILDING The historic house exists in a partially deconstructed state. The remains of the historic building on site include the first floor framing, first and second floor subfloor and exterior lap siding on the west (facing University Avenue) elevation. All of the porch and front stairway elements are 564 UNIVERSITY AVENUE Reconstruction Assessment 24 completely removed including framing, finish and details. Exterior wood lap siding, along with a mailbox next to the front door, remains on the west elevation and partially on the south bay window(damaged). Approximately nine feet have been removed from the rear of the historic building. This removal includes six (6) first and second floor window openings. Several built- ins and the stairway still remain on the first floor. Some plumbing piping is still intact as well as a tub on the second floor. The chimney has been completely removed. All windows and framing has been completely removed. All of the doors have been removed, although some of the door frames with partial trim remain. Up to eight feet of the north side of the historic building has been sheathed with OSB board. New and salvaged materials are stacked inside the historic house in the basement and on the first and second floors. Salvaged materials on site include structural framing, finish flooring, sections of exterior siding over framing and doors. The new addition at the rear of the property is under construction. Although there is a new foundation under the addition, the foundation between the historic building and the new addition does not appear to have been poured. 8 - West Elevation after Demolition; Note Removal of Porch and Window Frames, New Material Stored Under Tarps 564 UNIVERSITY AVENUE Reconstruction Assessment 25 9 - Exterior Wood Lap Siding; 10 - Porch Ceiling after Demolition Approximately Seven Inches Tall Exposed with Existing Framing and Second Floor Subfloor Above 11 - Door Opening at West Elevation 12 - North Elevation after Demolition: with Partially Intact Frame Note OSB board attached to framing and material stored onsite 564 UNIVERSITY AVENUE Reconstruction Assessment 26 13 - Southwest Corner of Historic Building 14 - South Bay Window after Demolition; After Demolition; Note removed Porch, Partial Exterior Wood Siding and Dentil Fireplace and Chimney Detail Remains but is Damaged 15 - South Bay Window Partially Remaining Dentil 16 - Boxed Corner at Second Floor after Demolition: after Demolition Note Removed Porch Details and Ceiling 564 UNIVERSITY AVENUE Reconstruction Assessment 27 17 - Rear Elevation of the Historic Building After 18 - Original Rear Entry Door Stored on Demolition; Remaining Face of Framing is First Floor Approximately Nine Feet from Original Face 564 UNIVERSITY AVENUE Reconstruction Assessment 28 STORAGE MATERIALS Items salvaged from the historic building are stored in two different units at an offsite location in Santa Clara, California. See the attached matrix in Appendix B: Field Notes/Inventory for a listing of these items. In general, the items appear to have been removed carefully and with little damage. Representatives from Garavaglia Architecture, Inc. visited the storage units on December 2, 2009 to assess the amount and condition of the stored material. Because of the method of storing the items, amounts of square (sqft) and lineal feet (lft) of material were not able to be verified. This would require complete disassembly of material bundles and a large area to layout each individual piece for inspection and measurement. As an alternative, Garavaglia Architecture, Inc. assessed the general condition of visible materials, types of materials stored, their storage locations and any notations made concerning the original locations of materials. Garavaglia Architecture, Inc. was able to verify retained features such as windows, doors, dormers and brackets which were readily identifiable. Based on existing drawings, Garavaglia Architecture, Inc. calculated the amount of materials present on the original building and compared these to the numbers provided by the contractor as part of their storage documentation. The Inventory is a hybrid document with the unmodified contractor’s salvaged material counts and these calculations along with field notes and observations. More specific material types and locations where added by Garavaglia are denoted with yellow shading. Where differences occur, discussions on the reasons for the discrepancy are included in the Findings Chapter of this report. Exterior Siding Description of material: Exterior siding consists of wood lap siding with three beveled reveals Amount of material noted on Contractor Inventory: 2420 sqft Amount of material anticipated from construction drawings: 2034 sqft Condition of salvaged material: generally in good, useable condition; some end cracking has occurred, but is the result of natural processes rather than method of removal Description of how material is stored: material is bundled with similar lengths, wrapped in tape and stacked on shelving inside storage units Roof and Dormers Description of material: There is no roofing material or gutters or downspouts that have been salvaged. The dormers have two openings each for windows (listed separately). The location of the exterior wood shingle siding that covers three (3) sides of each dormer is unknown. Amount of dormers noted on Contractor Inventory: three (3) Amount of material anticipated from construction drawings and photographs: three (3) Condition of salvaged material: generally in fair to good, useable condition Description of how material is stored: dormers are in the storage unit on wood shims 564 UNIVERSITY AVENUE Reconstruction Assessment 29 19 - Exterior Wood Lap Siding in 20 - Dormer Frame in Storage Unit P9 Storage Unit P9 Windows Description of material: The window frames vary in size, shape and type. Operable sashes have been removed and are also in storage unit. Doors are stacked against the wall of the storage unit. The rear door to the building is stored onsite inside an intact frame. Location of front door is unknown. See Appendix B: Field Notes/Inventory for windows in Contractor Inventory, amount of windows anticipated from construction drawings and photographs and verified window frame and sash counts. Condition of salvaged material: generally in fair condition; some window frames have received minor repairs; there are some panes of broken glass; in general the hardware remains but will need complete rehabilitation Description of how material is stored: window frames and sashes in the storage unit on wood shims 564 UNIVERSITY AVENUE Reconstruction Assessment 30 21 - Window Frames and Exterior Lap 22 - Columns, Doors and Window Frames Siding in Storage Unit P9 in Storage Unit P6 23 - Window Frames in Storage Unit P6 24 - Window Sashes in Storage Unit P9 564 UNIVERSITY AVENUE Reconstruction Assessment 31 Porch Description of material: Porch items consist of tongue and groove flooring, tongue and groove ceiling, four (4) columns, stairway to grade, cheek walls flanking stairway, and four (4) low walls at perimeter of porch. See Appendix B: Field Notes/Inventory for porch feature material in Contractor Inventory, amount of material anticipated from construction drawings and photographs and verified counts. Condition of salvaged material: generally in good, useable condition; location of low walls is unknown (may have been completely disassembled) Description of how material is stored: tongue and groove flooring and ceiling boards are bundled and stacked on shelves; other items are in the storage unit on wood shims 25 - Porch Low Walls in Storage Unit P6 26 - Twelve (12) Wood Brackets in Storage Unit P9 Trim Description of material: Trim consists of cornice molding, fascia molding, door and window trim, watertable trim and cornerboards Amount of material noted on Contractor Inventory: 896 sqft Amount of material anticipated from construction drawings: 598 sqft See Appendix B: Field Notes/Inventory for breakout amounts of specific types of trim including fascia, cornice trim, corner trim and water table trim. Condition of salvaged material: generally in fair to good, useable condition; location of low walls is unknown (may have been completely disassembled); location of stairway is unknown Description of how material is stored: material is typically bundled with other similar material, wrapped with tape and stored on shelving Decorative Features Description of material: The decorative features consist of brackets at the underside of the second story boxed corners and dentil molding that ran along the eaves of four sides of the house and at the top of the bay window. Amount of brackets noted on Contractor Inventory: 12 Amount of brackets anticipated from construction drawings and photographs: 12 564 UNIVERSITY AVENUE Reconstruction Assessment 32 Amount of dentil molding noted on Contractor Inventory: 150 lft Amount of dentil molding anticipated from construction drawings and photographs: 169.5 lft Condition of salvaged material: brackets are in good, useable condition; condition of the dentils was unable to be verified due to location in the storage unit Description of how material is stored: brackets and dentil molding are on shelving inside storage units 27 - Exterior Trim in Storage Unit P9 28 - Dentils in Storage Unit P9 564 UNIVERSITY AVENUE Reconstruction Assessment 33 EVALUATION OF INTEGRITY Integrity is the measure by which properties are evaluated. To retain integrity a property must retain most of the seven aspects of integrity as defined by the National Register of Historic Places Criteria for Evaluation. The seven aspects of integrity are quoted as follows: • Location - Location is the place where the historic property was constructed or the place where the historic event occurred. • Design - Design is the combination of elements that create the form, plan, space, structure, and style of a property. • Setting - Setting is the physical environment of the historic property. • Materials - Materials are the physical elements that were combined or deposited during a particular period of time and in a particular pattern or configuration form a historic property. • Workmanship - Workmanship is the physical evidence of the crafts of a particular culture or people during any given period in history or prehistory. • Feeling - Feeling is a property's expression of the aesthetic or historic sense of a particular period of time. • Association – Association is the direct link between an important historic event or person and a historic property. According to the Office of Historic Preservation’s Technical Assistance Series Bulletin #6: Integrity is the authenticity of an historical resource’s physical identity evidenced by the survival of characteristics that existed during the resource’s period of significance. Historical resources eligible for listing in the California Register must meet one of the criteria of significance described above and retain enough of their historic character or appearance to be recognizable as historical resources and to convey the reasons for their significance. It is possible that historical resources may not retain sufficient integrity to meet the criteria for listing in the National Register, but they may still be eligible for listing in the California Register.1 1 Office of Historic Preservation, Department of Parks and Recreation. California Register and National Register: A Comparison. Technical Assistance Series No. 6. 564 UNIVERSITY AVENUE Reconstruction Assessment 34 564 UNIVERSITY AVENUE Reconstruction Assessment 35 FINDINGS OVERVIEW Prior to deconstruction, the residential building at 564 University Avenue was found to retain a high degree of integrity of location, design, materials, association and workmanship. A full discussion of the building in relation to the seven aspects of integrity can be found in the 2008 Focused HSR report completed by Architectural Resources Group, Inc. (ARG). Using the information provided in that document, Garavaglia Architecture, Inc. concurs with that finding. 564 University Avenue is considered a historic resource and is classified as a Category 2 historic resource on the local inventory. According to section 16.49.020 of the Palo Alto Municipal Code, “Category 2: ‘Major building’ means any building…of major regional importance…[and/or] an outstanding example of an architectural style or the stylistic development of architecture in the state or region. A major building may have some exterior modifications, but the original character is retained.”2 According to the Focused Historic Structure Report completed by ARG in March 2008, the building is significant as the last residential structure in University Avenue’s commercial district and as an intact representation of an early 20th century Colonial Revival style residence. The deconstruction of the building in October 2009 dramatically altered the building’s appearance and significantly diminished its historic integrity, thus jeopardizing the Category 2 status of the building. However, a considerable amount of historic material was retained from the demolition and has been placed in an off-site storage area. The following evaluation intends to determine - through existing documentation, physical evidence and a general analysis of remaining materials - whether sufficient material integrity is present to support a reconstruction of the building and the retention of its Category 2 status. This evaluation of physical integrity examines the amount of extant material left on site and in storage to determine whether sufficient original material remains to feasibly restore the building’s historic appearance. An assessment of interior material integrity is not included as part of this discussion since item three (3) in the Conditions of Approval for the project stated that, “compliance with the ‘Recommendations for Interior Materials and Finishes Treatment’ (as outlined in the Focused HSR) [were] voluntary.” While a thorough review of the interior portions of the historic building is outside the scope of this report, it should be noted that this condition is accepted only as a pre-existing condition. According to ARG’s Focused HSR, the list of interior character defining features is extensive, and their recommendations are to “retain as much original interior moldings, built-ins and interior features as possible.” An evaluation of the integrity of each exterior element important to the reconstruction of the historic resource is provided. The evaluation discusses these elements in terms of the character-defining features identified in the Focused HSR. The following documents were used to inform this discussion: 2 Palo Alto Municipal Code, Chapter 16.49 HISTORIC PRESERVATION*, Section 16.49.020 Definitions. 564 UNIVERSITY AVENUE Reconstruction Assessment 36 • Palo Alto Municipal Code • Data provided by the contractor regarding the amount of historic material currently in storage • Photographs of the building before and after deconstruction • Focused Historic Structure Report for 564 University Avenue completed by ARG in March 2008 • Secretary of the Interior’s Standards for the Treatment of Historic Properties • Planning Submittal set drawings dated April 21, 2008 • Building Permit set drawings approved March 30, 2009 • Estimates of extant historic material (completed using information contained in Appendix B: Field Notes / Inventory) • Field measurements and historic details by the project architect (sketches and field notes property of Architect) MATERIALS Overall Building Form and Structure The second floor structural wall framing, the roof framing and all framing (both wall and floor sections) of the rear approximately nine feet of the building have been removed. It is unknown whether this original material still exists onsite. Site visit observations by Garavaglia Architecture, Inc. staff indicated that some framing materials may have been retained, but may not have been stored with adequate protection from the elements. As such, for the purposes of this review, we are assuming that the removed framing is not extant or reusable. Framing components that are extant include the first and second story structural floor framing and the first story exterior wall framing, less the rear nine feet of the building. Essentially, less than half of the original framing currently exists in its original location and configuration. As it relates to the Material aspect of integrity as defined above, the removal of the roof framing, second story wall framing and rear nine feet of wall and floor framing constitutes a significant impact to the integrity of this building component. The overall building form is no longer extant and a majority of the original structural materials have been removed. As it currently stands, the building massing exhibits a low degree of integrity of overall form and structure. 564 UNIVERSITY AVENUE Reconstruction Assessment 37 Exterior Siding For all four elevations of the historic building, the contractor has listed more exterior siding in storage than calculations have shown can exist. A possibility for this discrepancy is that the unexposed portions (the whole board) was used for storage counts, whereas the drawings will only show exposed portions of siding. The overlapped (unexposed) portions could increase the area count up to ten percent. It is not clear why there would be any additional material in storage. According to the amount of existing material provided by the contractor and calculations completed in-house by Garavaglia Architecture, Inc. staff, a sufficient quantity of original exterior cladding material remains in storage to cover the exterior walls of the full two- story building as represented in the approved plan set. Site visit observations and digital photographs indicate that the majority of the material is in good condition. As such, there appears to be an adequate level of integrity of siding material remaining to support reconstruction and reuse of this building element. Roof and Dormers All roof framing, including that of the dormers, and roof cladding material has been removed and is no longer extant. Because of the complete removal and apparent disposal of the structural roof framing, the building retains no integrity of this building component. However, the composition shingle roof cladding was not historic and its removal has no impact on the historic integrity of the building. All three dormers were removed as part of the deconstruction. The front wall frames, including the rough window openings, of each dormer have been retained and are in storage. However, the wood shingle cladding and side wall structural framing of each dormer have been removed and are assumed to be no longer extant. The window frames, sashes and glazing appear to be extant but are stored separately (see below for discussion of window integrity). The focused HSR identifies the dormers, as well as their wood shingle cladding, as exterior character defining features. Because the sidewall structural framing and wood shingle cladding are no longer extant, this building component exhibits diminished material integrity. Retention of the window frames, sashes, sills and glazing result in a moderate degree of overall integrity for the dormers. According to ARG’s Focused HSR, the original soffit boards at the underside of the eaves have been replaced. Above the rear entry there is some board material at the soffit that may be historic, but the date of the rear house modification is unknown. ARG’s Focused HSR recommends that all gutters and downspouts be replaced. No original gutters and downspouts remain. Aluminum “replacement” gutters are extant on the south bay window. Windows & Doors The bay window structural framing is intact onsite and includes the rough window openings, roof structure and cladding, and segments of wood siding, dentil molding and fascia board. The portions of siding left on the bay window frame are damaged. All first floor rough window openings remain except for the six window openings that were located on the rear nine feet of the building. (Note: of these, one window – the rear first story window on the north elevation - 564 UNIVERSITY AVENUE Reconstruction Assessment 38 had been approved for removal by the Planning Department). Since the second story wall framing had been removed, no window openings remain on this level. The methodology for documenting the salvaged windows in storage does not apparently relate to the system used in the building permit drawings in the window schedule. The size of the window listed in the window schedule differs from the method that was used to measure the windows in storage. Because of these differing methodologies, Garavaglia Architecture, Inc. staff was not able to specifically verify the existence of each window. Windows, frames and sashes in storage were measured and counted. These counts were then compared with the windows as shown in the building permit drawings. It should also be noted that most of the sashes are stored separately from the window frames and that there are a number of double hung window frames with an upper sash that has been fixed in place. While there were numbers written on the frames, no system was apparent for matching the sash with the correct frame. The total amount of windows shown in the building permit set are thirty-two (32) excluding removed windows. Thirty-five (35) window frames and thirty-three (33) sashes were verified. Information relayed by the contractor, and site visit observations made by Garavaglia Architecture, Inc. staff, indicate that nearly (stated as such because specific windows were unable to be identified) all of the original window frames, sashes and glazing are extant and in storage. Only a few panes of original glazing appear to have been broken, either previously or in the removal process, and the extant sashes and frames appear to be in fair condition. The original rear door was observed on site during the site visit though if left exposed to the elements its current condition is questionable. It is unknown whether the original front door has been retained. Overall, a sufficient degree of integrity of original window materials is extant to recreate the historic appearance of this building component. The original front door is identified as a character-defining feature in ARG’s Focused HSR. If this building component is no longer extant it will constitute a loss of material integrity for this building component. Porch The tongue and groove cladding of the porch ceiling, the wood flooring, all four wood columns, the entry stair cheek walls and one of the porch side walls remain extant and in storage. Only one wall appears to retain its beveled coping board. Some additional coping board has been identified in storage but that all of the coping has been salvaged cannot be confirmed. The wood entry steps and most low porch wall framing appear to be no longer extant. Overall, however, the porch elements appear to be generally intact and retain a sufficient amount of integrity for reconstruction. Trim All fascia, door and window trim, corner boards, and water table trim appear to be extant and are currently in storage. As such, there appears to be sufficient material integrity to reconstruct these building components. 564 UNIVERSITY AVENUE Reconstruction Assessment 39 Decorative Features Most of the dentil molding and all twelve decorative wood brackets are extant and in storage. As such, there appears to be sufficient material integrity to reconstruct these building components. SUMMARY Based on the amounts of materials present, the quality and detail of available documentation including field measurements taken prior to deconstruction and the condition of the materials available for reuse, Garavaglia Architecture, Inc. finds that there is the potential to reassemble the historic fabric of 564 University Avenue using original materials. If the building is carefully reconstructed to its original configuration and appearance using existing materials, the remaining structural framing and recommended treatment methods, the building will be able to retain the integrity required to uphold its Category 2 listing as a historic resource. The methodology for reassembly should follow accepted preservation construction treatments and technology to further protect the remaining materials and therefore historic integrity. This may include a revision of structural upgrades as currently conceived. Elements of the proposed plan that were approved for removal and/or replacement as part of the HRB review of the proposed project (Historic Resources Board Staff Report dated May 7, 2008) could be restored to original configurations to further improve the historic integrity of the building if further, ongoing review processes determine that the integrity level has been excessively compromised. Suggested improvements include the reconstruction of the brick chimney in lieu of a new window installation. 564 UNIVERSITY AVENUE Reconstruction Assessment 40 564 UNIVERSITY AVENUE Reconstruction Assessment 41 RECOMMENDATIONS OVERVIEW Conditions of approval should be formed by the City of Palo Alto based on these recommendations. The findings presented have determined that there is the potential to reassemble the historic fabric of the historic building. However, it is important to note that any rehabilitation and reconstruction will be a process. Final determination that the recommendations and any resulting conditions have been met should be reserved until the completion of the project. It is imperative that the contractor become familiar with the recommendations and fully understand the resulting conditions. Any additional drawings provided as a result of these recommendations should be reviewed by the contractor. Coordination items not fully vetted by the drawings should be resolved before any construction activity takes place. Any further demolition or destruction of historic material should absolutely be prohibited. Additional information will be needed to reconstruct the historic building. As issued, the Planning Submittal and Building Permit do not contain sufficient information to reconstruct the building. On a typical drawing depicting existing conditions, graphic images are provided but not dimensioned. Because reconstruction of a substantial portion of the building must be reconstructed from the framing to the details, the procurement of as many field measurements, notes and observations as possible should be pursued. These dimensions and sketches should be assembled into a working set of architectural reconstruction drawings (similar to that of a new building) and be fully coordinated with the other disciplines. Any photographs taken before demolition should be used to supplement existing information. The structural drawings should be reconceived to take into account the current state of the building. It is not clear how the new structural system interacts with the extant framing and will support second floor walls, openings and roof forms. New or modified structural drawings should provide for reconstruction of the historic building and the removed rear nine feet of the building. Because the rear nine feet will be reconstructed, it is not clear how a new foundation will interact with the existing foundation and basement walls. The structural system design shall maximize retention of and be sensitive to the existing remaining fabric (including stored materials) and allow the overall design and form of the historic building to be reconstructed. Historic Building (HB) specifications shall be provided to inform the contractor regarding the proper treatment of the historic fabric and its reassembly. Technical preservation briefs and other supporting documentation are available through the The National Park Service to guide rehabilitation and reconstruction methods and applications. The preservation briefs can be found online at http://www.nps.gov/history/hps/tps/publications.htm. 564 UNIVERSITY AVENUE Reconstruction Assessment 42 The reconstruction of the missing rear nine feet of the building will be necessary to restore the overall building form and structure. It is our assumption that any structural framing elements will need to be replaced. Framing should be reinstituted to allow the exterior form to be replicated by careful investigation into the existing field dimensions and sketches. Windows can be relocated in their original location and as many original details (trim, corner board, dentils, etc.) should be reinstalled. The City of Palo Alto will be advised to provide conditions of approval based on these recommendations. It is advised that the City require a Reconstruction Plan that includes: • Documentation of how “conditions of approval” will be met • Drawings and specifications • Reconstruction observation plan An objective, third-party consultant can provide the expertise both in advising on or providing a plan and determining at what level project conditions are met. RECONSTRUCTION OBSERVATION GUIDELINES Following are guidelines for an objective, third-party reconstruction observation agency to assist the City of Palo Alto in the reconstruction of the historic building at 564 University Avenue with the objective of reassembling the historic fabric to a Historic Inventory Category 2 level of integrity. • Assumes issuance of a “Reconstruction Plan” by the City of Palo Alto (referred to hereafter as the “City”) • Reconstruction observation agency (or individual) will have verifiable construction administration or construction management experience and verifiable experience with historic preservation • Shall apply primarily to reconstruction of historic building and shall only apply to new addition where affecting reconstruction of historic building • May include associated consultant(s), i.e., structural engineer, that is able to verify framing • Reconstruction observation agency shall not be expected to perform normal duties (e.g. submittals not related to the historic building, RFIs not related to the historic building, applications for payment) of typical construction administration. Responsibility is specifically targeted towards reassembling the historic fabric of the historic building. Preconstruction Phase 564 UNIVERSITY AVENUE Reconstruction Assessment 43 1. Provide preliminary evaluation for City, Owner and Architect including analysis of Report and examination of City Reconstruction Plan 2. Advise Architect and project team in an ongoing basis, as established by the Reconstruction Plan, on: A. Material treatment B. Reconstruction drawings C. Historic and reconstruction details D. Historic Building (HB) specifications E. Phasing 3. Ongoing consultation to the City and project team. 4. Establish necessary reconstruction submittals by contractor as well as review of submittals Construction Phase 1. Attend mandatory preconstruction meeting 2. Conduct a minimum of once a week site visits; may also require additional site visits as necessary during critical phases and at milestones 3. Provide report(s) on reconstruction from site visits and observation of progress on the Reconstruction Plan 4. Provide responses to Requests for Information (RFIs) from the Contractor specific to the reconstruction of the historic building 5. Provide recommendations for replacement of damaged or missing materials. 6. Prepare final punchlist 7. Provide final report with assessment of whether or not reconstruction has achieved project goals. Final determination as to the fulfillment of the Reconstruction Plan shall be the City’s HISTORIC MATERIALS When historic materials are beyond repair replacement materials shall exactly match historic configurations and, in the case of wood, the species. Salvaged material from the rear of the building shall be used first. Additions shall use only new material. Note that original materials should be placed as far to the front of the building as possible (concentrated on the west and south elevations) and any new recreated materials should be placed towards the rear of the building to limit exposure from the public realm. Following are general material specific guidelines: Siding Because no siding elements were labeled with their exact locations, careful consideration of placement for each siding board will be required. In general: • No siding boards should be cut to fit. Boards should be reinstalled in appropriate locations that do not require them to be cut to size. Once all portions of a given elevation have been clad with available whole boards, any remaining siding from that elevation not being 564 UNIVERSITY AVENUE Reconstruction Assessment 44 reinstalled can be altered to fit the remaining gaps in siding. In general, the cutting of siding boards should be avoided in an effort to reinstall boards in locations analogous to their original placement. • Install boards in a traditional manner, with fastenings in the appropriate locations. No exposed face nailing should be allowed. • Once siding is reinstalled, fill any voids in the material from prior damage (nail holes, chipped edges, etc.) with an appropriate exterior-grade cellulose filler suitable for painting. Windows • All windows called out for reinstallation on the plans approved on March 30, 2009 should be reinstalled in their original locations. Where storage notations differ from the window schedule, the dimensions of the window should be used to determine the original location. • Where window framing is no longer extant, openings should be created in the exact vertical and horizontal locations relative to other building elements to maintain the historic arrangement of features. • All new framed openings should be carefully constructed to the appropriate dimensions of each historic window. Relocation of windows of is not recommended. • All window hardware and operating mechanisms should be repaired prior to installation. • All window frame and sash repairs should be made prior to installation. Decorative features (columns, dentil molding, soffits, trim, etc.) • The cutting of trim elements is not recommended. Trim boards should be reinstalled in appropriate locations that do not require them to be cut to size. Once all trim elements on a given elevation have installed with available whole boards, any remaining trim from areas not being recreated can be altered to fit the remaining gaps in siding. In general, the cutting of siding boards should be avoided in an effort to reinstall boards in locations analogous to their original placement. • Install boards in a traditional manner, with fastenings in the appropriate locations. No exposed face nailing should be allowed. • Once trim is reinstalled, fill any voids in the material from prior damage (nail holes, chipped edges, etc.) with an appropriate exterior-grade cellulose filler suitable for painting. 564 UNIVERSITY AVENUE Reconstruction Assessment 45 SUMMARY Garavaglia Architecture, Inc. reviewed City and Owner provided pictures, drawings, field notes, inventory and correspondence and observed site conditions and the materials salvaged in the storage unit. Garavaglia Architecture, Inc. staff then calculated the amount of exterior material needed to reconstruct the building from the drawings. These calculations, along with observed verifications, are contained in Appendix B: Field Notes/Inventory. Based on the amounts of materials present, the quality and detail of available documentation including field measurements taken prior to deconstruction and the condition of the materials available for reuse, Garavaglia Architecture, Inc. finds that there is the potential to reassemble the historic fabric of 564 University Avenue using original materials. If the building is carefully reconstructed to its original configuration and appearance using existing materials, the remaining structural framing and recommended treatment methods, the building will be able to retain the integrity required to uphold its Category 2 listing as a historic resource. The City of Palo Alto will be advised to provide conditions of approval based on the recommendations in this report. It is advised that the City require a Reconstruction Plan responding to the conditions. As a component of the Reconstruction Plan, review by an objective, third-party reconstruction observation agency will will provide the expertise to ensure that the reconstruction process will return the building to the level of historic integrity required by the Municipal Code for a Historic Inventory Category 2 building, and thus retain for the project the benefits and exemptions that previously had been granted based on this status. The methodology for reassembly should follow accepted preservation construction treatments and technology to further protect the remaining materials and therefore historic integrity. Following is a summary of the main recommendations: • Any further demolition or destruction of historic material should absolutely be prohibited. • Final determination that the recommendations and any resulting conditions have been met should be reserved until the completion of the project. • It is imperative that the contractor and other involved parties become familiar with the recommendations and fully understand the resulting conditions. • Because a substantial portion of the building must be reassembled from the framing to the details, the procurement of as many field measurements, notes and observations as possible should be pursued. These dimensions and sketches should be assembled into a working set of architectural drawings (similar to that of a new building) and be fully coordinated with the other disciplines. 564 UNIVERSITY AVENUE Reconstruction Assessment 46 • The structural drawings should be reconceived to coordinate with the current state of the building. The structural system design shall maximize retention of and be sensitive to the existing remaining fabric (including stored materials) and allow the overall design and form of the historic building to be reconstructed. • It is advised that the City provide conditions of approval and require a Reconstruction Plan that includes documentation of how the conditions will be met, drawings and specifications and a reconstruction observation plan. • An objective, third-party reconstruction observation agency should assist the City of Palo Alto in the reconstruction of the historic building with the objective of reassembling the historic fabric. 564 UNIVERSITY AVENUE Reconstruction Assessment APPENDIX A: DRAWINGS The following drawings were provided by the Architect, Ann Hawkinson. Snapshots of the drawings approved for building permit on March 30, 2009 are unmodified in this report. Drawing A1.2 - Site Plan A1 564 UNIVERSITY AVENUE Reconstruction Assessment Drawing A2.1 - Basement Floor Plan A2 564 UNIVERSITY AVENUE Reconstruction Assessment Drawing A2.2 - First Floor Plan A3 564 UNIVERSITY AVENUE Reconstruction Assessment Drawing A2.3 - Second Floor Plan A4 564 UNIVERSITY AVENUE Reconstruction Assessment Drawing A2.4 - Roof Plan A5 564 UNIVERSITY AVENUE Reconstruction Assessment Drawing A3.1 - North Elevation A6 564 UNIVERSITY AVENUE Reconstruction Assessment Drawing A3.2 - South Elevation A7 564 UNIVERSITY AVENUE Reconstruction Assessment Drawing A3.4 - West Elevation A8 564 UNIVERSITY AVENUE Reconstruction Assessment APPENDIX B: FIELD NOTES / INVENTORY The Inventory is a hybrid document with the contractor’s unmodified salvaged material counts and calculations, condition assessment, field notes and observations by Garavaglia Architecture, Inc. “Date Removed” and “Storage Unit #” information from the contractor has been removed from this document for clarity. More specific material types and locations where added by Garavaglia for listing calculations are denoted with yellow shading. For an in-depth explanation of the inventory see the Storage Materials section in the Existing Conditions Chapter. B1 GA R A V A G L I A A R C H I T E C T U R E , I N C . AP P E N D I X B : FI E L D N O T E S / I N V E N T O R Y LO C O F M A T E R I A L S IT E M # O F IT E M S CO N T R C T R TO T A L CA L C S (G A ) CO N D I T I O N (G A ) G A F I E L D N O T E S ( G A ) Ex t e r i o r S i d i n g Ea s t La p S i d i n g 64 0 s q f t 5 8 0 s q f t No r t h La p S i d i n g 82 0 s q f t 6 6 0 s q f t 10 3 1 / 2 " l o n g x 1 2 " w i d e We s t La p S i d i n g 32 0 s q f t 2 0 4 s q f t Ad d i t i o n a l 2 3 0 s q f t r e m a i n i n g o n t h e f i r s t fl o o r So u t h La p S i d i n g 64 0 s q f t 5 9 0 s q f t To t a l S i d i n g 24 2 0 s q f t 2 0 3 4 s q f t G o o d Ro o f a n d D o r m e r s Do r m e r s Wi n d o w f r a m e s 3 3 F a i r t o G o o d Wh o l e u n i t s w i t h t w o ( 2 ) w i n d o w op e n i n g s e a . Do r m e r C l a d d i n g Wo o d S h i n g l e S i d i n g n/ a 3 1 . 5 s q f t n / a Lo c a t i o n i s u n k n o w n Wi n d o w s 1s t F l o o r S o u t h S i d e Sa s h a n d f r a m e 1 4 0 x 6 4 2n d F l o o r W e s t S i d e Sa s h a n d f r a m e 2 6 7 x 5 8 2n d F l o o r W e s t S i d e Sa s h a n d f r a m e 2 4 0 X 5 8 1s t F l o o r W e s t S i d e Sa s h a n d f r a m e 1 4 0 x 3 3 1s t F l o o r W e s t S i d e Sa s h a n d f r a m e 2 5 4 x 6 5 1s t F l o o r N o r t h S i d e Sa s h a n d f r a m e 1 2 8 x 3 0 1 / 2 1s t F l o o r N o r t h S i d e Sa s h a n d f r a m e 1 2 0 x 2 8 1s t F l o o r N o r t h S i d e Sa s h a n d f r a m e 3 3 6 x 5 8 2n d F l o o r N o r t h S i d e Sa s h a n d f r a m e 2 3 6 x 5 8 LO C O F M A T E R I A L S IT E M # O F IT E M S CO N T R C T R TO T A L CA L C S (G A ) CO N D I T I O N (G A ) G A F I E L D N O T E S ( G A ) 2n d F l o o r N o r t h S i d e Sa s h a n d f r a m e 1 4 0 x 4 6 2n d F l o o r N o r t h S i d e Sa s h a n d f r a m e 1 6 7 x 5 8 2n d F l o o r S o u t h S i d e Sa s h a n d f r a m e 1 6 7 x 5 8 2n d F l o o r S o u t h S i d e Sa s h a n d f r a m e 1 2 3 x 3 4 2n d F l o o r S o u t h S i d e Sa s h a n d f r a m e 1 5 8 x 5 8 2n d F l o o r S o u t h S i d e Sa s h a n d f r a m e 3 4 0 x 5 8 2n d F l o o r S o u t h S i d e Sa s h a n d f r a m e 1 2 4 x 3 4 1s t F l o o r S o u t h S i d e Sa s h a n d f r a m e 4 4 0 x 6 5 2n d F l o o r E a s t S i d e Sa s h a n d f r a m e 3 2 7 x 3 8 2n d F l o o r E a s t S i d e Sa s h a n d f r a m e 1 2 4 x 3 6 2n d F l o o r E a s t S i d e Sa s h a n d f r a m e 1 3 0 x 5 3 1s t F l o o r E a s t S i d e Sa s h a n d f r a m e 1 1 8 x 3 0 1s t F l o o r E a s t S i d e Sa s h a n d f r a m e 1 3 0 x 4 2 1s t F l o o r E a s t S i d e Sa s h a n d f r a m e 1 4 " x 3 ' 3 " Ov e r a l l W i n d o w s n/ a F a i r Th i r t y - f i v e ( 3 5 ) w i n d o w f r a m e s v e r i f i e d ; Th i r t y - t h r e e ( 3 3 ) w i n d o w s a s h e s v e r i f i e d ; Mo s t o r i g i n a l h a r d w a r e i s i n p l a c e , s o m e br o k e n g l a s s , h a n g i n g m e c h a n i s m (r o p e s ) m o s t l y b r o k e n Po r c h Po r c h C e i l i n g T& G C e i l i n g 35 6 s q f t Fa i r t o G o o d Be t t e r c o n d i t i o n t h a n f l o o r Po r c h F l o o r T& G F l o o r 25 6 s q f t Fa i r Cu t n a i l s s o t o n g u e i s i n t a c t , s o m e e d g e da m a g e Po r c h Co l u m n s 4 4 G o o d Po r c h Lo w p e r i m e t e r w a l l s 4 Fa i r t o G o o d Re m o v e d i n s e c t i o n s , e x a c t l o c a t i o n s un k n o w n Po r c h S t a i r s St a i r l o w w a l l s 2 2 F a i r Re m o v e d a s w h o l e e l e m e n t s , s o m e r o t an d m a t e r i a l d a m a g e n o t e d Po r c h Ra i l i n g / c o p i n g b o a r d 48 l f t Go o d 1x 1 8 b o a r d s u s e d a s c o p i n g f o r p o r c h wa l l s LO C O F M A T E R I A L S IT E M # O F IT E M S CO N T R C T R TO T A L CA L C S (G A ) CO N D I T I O N (G A ) G A F I E L D N O T E S ( G A ) Mo l d i n g a n d T r i m No r t h Fa s c i a 52 l f t We s t Fa s c i a 40 l f t So u t h Fa s c i a 52 l f t Ba y Fa s c i a 13 l f t No r t h Co r n i c e T r i m 48 l f t No r t h P o r c h Co r n i c e T r i m 9 l f t So u t h Co r n i c e T r i m 48 l f t So u t h P o r c h Co r n i c e T r i m 9 l f t We s t Co r n i c e T r i m 35 l f t No r t h P o r c h Tr i m 18 l f t So u t h P o r c h Tr i m 18 l f t Ba y Tr i m 13 l f t So u t h W a t e r T a b l e Wa t e r T a b l e T r i m 48 l f t No r t h W a t e r T a b l e Wa t e r T a b l e T r i m 48 l f t So u t h Co r n e r T r i m 42 l f t No r t h Co r n e r T r i m 42 l f t We s t P o r c h N o r t h S i d e 33 l f t We s t P o r c h S o u t h S i d e 30 l f t no l o c a t i o n s p e c i f i e d C o r n e r t r i m Fa i r Ve r y n a r r o w , 9 0 - d e g r e e t r i m p i e c e s , am o u n t s u n s p e c i f i e d no l o c a t i o n s p e c i f i e d Ex t e r i o r W i n d o w T r i m "E x t e r i o r T r i m W i n d o w C a s i n g , " 1 x 6 pa i n t e d , a m o u n t u n s p e c i f i e d , b u n d l e d b u t no t l a b e l e d No r t h , S o u t h , E a s t & W e s t Ex t e r i o r M o l d i n g 89 6 s q f t 5 9 8 l f t G o o d De c o r a t i v e F e a t u r e s Po r c h Br a c k e t s 12 12 G o o d LO C O F M A T E R I A L S IT E M # O F IT E M S CO N T R C T R TO T A L CA L C S (G A ) CO N D I T I O N (G A ) G A F I E L D N O T E S ( G A ) No r t h , S o u t h , E a s t & W e s t De n t i l M o l d i n g 15 0 l f t 1 6 9 . 5 l f t n / a Do e s n o t a p p e a r t o b e c u t , l e n g t h s a n d am o u n t s a r e u n c e r t a i n , o n u p p e r s h e l f , no t l a b e l e d Mi s c . Ba s e m e n t Br i c k s 65 0 s q f t Fa i r So m e i n s t o r a g e o t h e r s o n a n o t h e r j o b si t e ; C o n t r a c t o r l i s t e d l o c a t i o n i n " o f f i c e ya r d " Ba s e m e n t ve n t f r a m e s / w i n d o w s 4 2 F a i r Fo r s c r e e n e d v e n t o p e n i n g s In t e r i o r F i n i s h e s Fi r s t F l o o r Ha r d w o o d F l o o r 78 0 s q f t n / a n / a So m e s t o r e d o n s i t e , u n d e r t a r p s Se c o n d F l o o r Ha r d w o o d F l o o r 14 8 0 s q f t n / a n / a So m e s t o r e d o n s i t e , u n d e r t a r p s 5960.txt Text only. Page 1 2. Staff recommends that the Historic Resources Board recommend to the Director of Planning and Community Environment that the reconstruction and restoration proj ect will maintain the previously approved Floor Area Bonus (a) by meeting the definition of "historic rehabilitation" in Municipal Code 18.l8.030(b) which requires a project to remedy "all the known rehabilitation needs of the building," (b) by meeting the Secretary of the Interior's Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings which require preservation of the character-defining features of the building, and (c) by achieving the level of historic integrity at which "the original character is retained" as cited by the Historic Preservation Ordinance for a Category 2 building, subject to the Conditions of Approval in Attachment A. 3. Staff recommends that the Historic Resources Board recommend to the Architectural Review Board and the Director of Planning and Community Environment that the proposed design revisions to the previously approved rear addition to the historic building comply with Standard 9 of the Secretary's Standards for Rehabilitation which requires an addition to a historic building to be compatible with the historic building and adequately differentiated from the historic building. BACKGROUND The Previously Approved Proj ect of 2008 In 2006 the previous owner of 564 University Avenue decided to redevelop the downtown Category 4 historic house as a large restaurant for a prospective tenant which.would require additional square footage beyond that normally allowed by the zoning ordinance. The owner applied for a 2,500 square-foot Floor Area Bonus for a large addition to the building. As the Bonus is reserved for downtown Category 1 and 2 buildings, the owner applied to reclassify the building as a Category 2 structure in February 2007. The Historic Preservation Ordinance defines "Category 2 (Major Building)" as follows: '''Major building' means any building or group of buildings of major regional inlportance, meritorious works of the best architects or an outstanding example of an architectural style or the stylistic development of architecture in the state or region. A major building may have some exterior modifications, but the original character is retained." In May 2007 the City Council approved the reclassification based on the recommendation of the Historic Resources Board (HRB). In March 2008 the owner submitted a project application based on the Floor Area Bonus and a Variance that included a request for basement square footage in excess of that provided by the Bonus. The application was conditionally approved by the HRB and Architectural Review Board during May-June 2008, and on June 12, 2008 the Director of Planning and Community Environment conditionally approved the application. In April 2009 the City issued the building permit and construction commenced. The Unauthorized Deconstruction of 2009 In October 2009 the contractor concluded that installation of the approved steel structural system, intended to seismically upgrade the historic house for the new use, would be facilitated by deconstructing the entire roof and second floor, and part of the first floor and transporting the deconstructed elements off-site for storage. On October 13,2009 the contractor commenced deconstruction without informing the City even though this action violated the approved plans and conditions of the building permit which required retention of the roof and .exterior walls of the 564 University Avenue Reconstruction and Restoration Page 2 of9 historic house throughout construction. Deconstruction was completed on October 15 and on October 16 the City issued a "Stop Work" notice. On October 25 the Director of Planning informed the City Council of the unpermitted deconstruction and summarized the plan to reconstruct the historic house. The Historic Preservation Ordinance Provision for Reconstruction As staff reviewed the enforcement and penalties section of the Historic Preservation Ordinance to determine next steps, staff concluded that because nluch of the deconstructed historic fabric had been placed in storage the property was potentially eligible for a Historic Ordinance provision that allows an unlawfully demolished or altered historic building in the downtown to be reconstructed "after a recommendation by the historic resources board and a finding by the city council that the proposed work will effect adequate restoration and can be done with a substantial degree of success" (Attachment B). The Project Historic Consultant Because the City's evaluation of the 564 University Avenue reconstruction project has required significant construction expertise beyond that typically possessed by Planning staff, the City's qualified historic consultant, Garavaglia Architecture, which is expert in construction methodology and details, has played a major advisory role in the development of the project plans. In November 2009, at the request of the property owner, staff retained the historic consultant at the owner's expense to survey the stored exterior fabric from the deconstructed house to determine whether sufficient historic material was available to reconstruct the house to its previous Category 2 level of integrity. With the owner's permission staff also requested that the historic consultant develop a procedure to regularly monitor the reconstruction and restoration process on site to ensure that the project will achieve its primary goal of accurately reconstructing the character-defining features of the exterior. In February 2010 the historic consultant submitted a report on the potential to reassemble the historic fabric of the house and the method of monitoring the construction process up to the completion of the project: "564 University Avenue: Reconstruction Assessment Report" (Attachment C) which stated the following conclusion on page 39: "Based on the amounts of materials present, the quality and detail of available documentation including field nleasurements taken prior to deconstruction and the condition of the materials available for reuse, Garavaglia Architecture, Inc. finds that there is the potential to reassemble the historic fabric of 564 University Avenue using original materials. If the building is carefully reconstructed to its original configuration and appearance using existing materials, the remaining structural framing, and recommended treatment methods, the building will be able to retain the integrity required to uphold its Category 2 listing as a historic resource." Regarding staffs request to the consultant to develop an on-site monitoring procedure to ensure that the process of reconstruction and restoration will continually adhere to historic best practices and to the City's Conditions of Approval, the Garavaglia Report provided the following summary recommendation on page 45: 564 University Avenue Reconstruction and Restoration Page 3 of9 "As a component of the Reconstruction Plan, review by an objective, third-party reconstruction observation agency will provide the expertise to ensure that the reconstruction process will return the building to the level of historic integrity required by the Municipal Code for a Historic Inventory Category 2 building, and thus retain for the project the benefits and exemptions that previously had been granted based on this status." Following staffs favorable review of the Garavaglia Report the City requested that Garavaglia Architecture perform the function of the third-party reconstruction observation agency, a description of which is presented in the "Discussion" section below. Features of the Historic House This Colonial Revival house was initially constructed in 1904, and at the time of the unauthorized deconstruction the house was still nearly unaltered. It is a symmetrical example of the style and displays a classical influence in the columned porch. Because the original project of 2008 requested the granting of a Floor Area Bonus a Historic Structure Report HSR was required to guide the historic rehabilitation project. The report, entitled "564 University Avenue, Palo Alto, CA: Focused Historic Structure Report" was prepared by Architectural Resources Group (ARG) and dated February 2008 (Attaclunent D). The report describes the architecture of the house and historic persons associated with the property, and an illustrated list of the exterior character- defining features of the house is provided on pages 13-14 and 17. The report also evaluates the condition of the building's historic fabric~ A project description of the treatment of the historic house and the new rear addition is provided on pages 22-23 and as this project description is still valid in the context of the current project staff recommends review of pages 22-23 in conjunction with review of the current reconstruction plans. Finally, ARG provides recommendations for treating historic fabric and the design of the new addition which are closely similar to the recommendations of the Garavaglia Architecture "Reconstruction Assessment Report." Current Proj ect Description for the Historic House A complete project description for the Historic House includes the project description in the 2008 ARG Historic Structure Report part of which is already constructed (for example, the basement foundation walls, part of the basement itself and part of the framing of the rear addition) and will be finished by the current project. The current project is generally consistent with the previously approved project, and the original Conditions of Approval will continue to be implemented although they are supplemented by new Conditions of Approval necessary to define and guide the reconstruction and restoration project (Attachment E). In brief, the 2008 Conditions of Approval were Conditions on a construction project while the 2012 Conditions of Approval are Conditions on a reconstruction proj ect. The original focus of the historic house project was rehabilitation of the structure and its features such as windows. The project included moving the house closer to University Avenue and a seismic upgrade of the house. The focus of the current project is reconstruction of the deconstructed house including reassembly of the siding, determining the location of the framing, reconstruction of the front porch and entry stairs and the reconstruction of the dormers on the new roof. All the historic windows will be rehabilitated including the window hardware to the extent possible. 564 University Avenue Reconstruction and Restoration Page 4 of9 Current Proj ect Description for the Rear Addition The current project includes changes to the originally approved design of the rear addition, changes which reflect the change of use of the building from the originally proposed restaurant use to the currently proposed office use. Because office use is more compatible with traditional residential design than a large restaurant use, with its many mechanical needs, the changes to the rear addition for office use have resulted in a simpler more residential design .. The HRB can verify this design benefit of the revised addition by referring to the previously approved addition which is depicted in Garavaglia Architecture's "564 University Avenue: Reconstruction Assessment Report" on pages A6 and A7 of "Appendix A: Drawings." Because the originally approved design of the addition has changed Architectural Revi~w of the new design is required and the Historic Resources Board is required by the Historic Ordinance to recommend to Architectural Review whether the revised addition meets the Secretary's Standards, particularly Standard 9 for compatibility with the historic house and adequate differentiation from the historic house. Staff recommends that the revised design for the rear addition is compliant with the Secretary's Standards as presented in Attachment F The changes to the rear addition from the 2008 approved design include the following: • South (Right) Elevation: The door at the rear has been replaced with a double-hung window • North (Left) Elevation: Four double-hung windows have been added at the first and second floors • East (Rear) Elevation: Four additional double-hung windows have been added at the first floor on the previously blank wall • West (Front) Elevation: The previous west-facing window at the second floor of the projecting addition has been deleted • Roof of the Addition: The flat roofed area surrounded with a parapet that was intended to house mechanical equipment for the kitchen has been replaced with a continuation of hipped roof of the addition Staff recommends that the HRB recommend to the Director of Planning that these changes bring the addition into closer harmony with the design elements of the historic house and that the addition thereby achieves compatibility with the historic house. Staff recommends that the revised addition is adequately differentiated from the historic house for the following five reasons: • The roof of the addition is still lower than the roof of the historic house (as originally approved); • The entry to the addition on the south (right) elevation is still recessed as originally approved (which clearly indicates where the historic house ends); • The style of the fenestration at the entry to the addition is still in a contemporary style as originally approved; • The beveled lap siding is still wider (3") than the lap siding of the historic house (2") as originally approved, and • Modem manufacturing details of the addition's windows clarify their modernity 564 University Avenue Reconstruction and Restoration Page 5 of9 DISCUSSION The Reconstruction Plans The plans for the reconstruction project were developed by the architect, Premier Design, based on extensive consultation with the City's historic consultant, Garavaglia Architecture, and Planning staff The resulting plans address not only the design of the project under the Secretary's Standards for Rehabilitation, but they also contain much information in narrative plan sheets and numerous keynotes that address the processes of restoration of character-defining features and the reassembly of the deconstructed nlaterials of the house (Attachment G). If the HRB recommends approval of the reconstruction plans then the narrative plan sheets and keynotes become binding assurances that the reconstruction of the house will be successful because no essential details have been overlooked. Furthermore, Garavaglia Architecture, acting as the reconstruction observation agency, will confirm through regular site visits that the reconstruction and restoration processes described and depicted in the plans are inlplemented. Staff recommends that the HRB determine whether further descriptions of reconstruction and/or restoration processes or further keynotes need to be added to the future building permit plans or if the plans before the HRB at the June 20 meeting appear complete. Staff recommends that the HRB carefully review three aspects of the reconstruction project which represent what a person walking by the house on University Avenue would mainly see: • The roof of the historic house and the three dormers; • The beveled lap siding that will cover the walls of the historic house, and • The windows of the historic house, the elements of which need to be carefully preserved from damage and thoroughly rehabilitated. Especially critical is the reassembly of the historic beveled lap siding which will be carefully monitored by Garavaglia Architecture. It is important that the assembly of the siding be as seamless as possible consistent with the appearance of the siding prior to the deconstruction. The plan elevations of the house on Sheets A-I06, A-I07, and A-I08 each contain "Wood siding installation notes" which describe methods provided by Garavaglia Architecture to avoid visible seams. Such seams would constitute a failure of the project and must be avoided. The HRB may have information and experience in avoiding visible seams when siding is installed and nlay wish to make comments on this issue. As shown on plan Sheets A-112, A-113, and A-114 the applicant very carefully assembled the stored siding and window locations as recommended by Garavaglia Architecture. Garavaglia Architecture also made a number of recommendations on the treatment of the historic siding which are contained on pages 43-44 of the 564 University Avenue: Reconstruction Assessment Report (Attachment C). Finally, the HRB's evaluation of the adequacy of the reconstruction and restoration plans may be assisted by reference to staffs recommended Conditions of Approval in Attachnlent A which are based on the plans and on a number of Garavaglia Architecture's recommendations for a successful proj ect. The Reconstruction Observation Agency The most important component of the reconstruction project for ensuring the final success of the proj ect will be the periodic monitoring of the reconstruction on site by the City's historic 564 University Avenue Reconstruction and Restoration Page 6 of9 consultant, Garavaglia Architecture, functioning as the reconstruction observation agency. In February 2010 Garavaglia Architecture provided "Reconstruction Observation Guidelines" on pages 42-43 of the "564 University Avenue: Reconstruction Assessment Report." The Guidelines . establish that during the preconstruction phase of the project the consultant will advise the City, the property owner, and the project architect regarding "material treatment, reconstruction drawings, historic and reconstruction details, historic building specifications, and phasing," and will provide "ongoing consultation to the City and project team," and will "establish necessary reconstruction submittals by contractor as well as review of submittals." The historic consultant has performed these functions during the last two years. When construction is ready to begin the historic consultant perform the following seven functions throughout the construction phase: 1. Attend mandatory preconstruction meeting; 2. Conduct a minimum of once a week site visits; may also require additional site visits as necessary during critical phases and at milestones; 3. Provide report(s}on reconstruction from site visits and observation of progress on the Reconstruction Plan; 4. Provide responses to Requests for Information (RFIs) from the Contractor specific to the reconstruction of the historic building; 5. Provide recommendations for replacement of damaged or missing materials; 6. Prepare final punchlist, and 7. Provide final report with assessment of whether or not reconstruction has achieved project goals. Final determination as to the fulfillment of the Reconstruction Plan shall be the City's Garavaglia Architecture provided an update on the functions of the reconstruction observation agency in a Memorandum to the City, dated April 30, 2012: "In our role as advisor to the City of Palo Alto, Garavaglia Architecture, Inc. has agreed to perform site visits for observation during the reconstruction of the historic house. The contractor shall provide a schedule of construction so that site visits can be arranged. Other site visits at critical nlilestones, such as completion of framing shall be performed and contractor shall make every effort to inform the City and Garavaglia Architecture, Inc. of these critical milestone dates and any schedule changes reasonably ahead of time so site visits can be arranged. Minimum number of site visits will be once every two weeks until substantial conlpletion of the reconstruction of the historic building. Maximum number of site visits shall be seven (7). A final punchlist will be prepared and issued after the final visit. During the construction phase, Garavaglia Architecture, Inc. will also respond to requests for information (RFIs) issued by the contractor." In the Reconstruction Observation Guidelines Garavaglia Architecture stated that the primary task of the reconstruction observation agency is "to assist the City of Palo Alto in the reconstruction of the historic building at 564 University Avenue with the objective of reassembling the historic fabric to a Historic Inventory Category 2 level of integrity." 564 University Avenue Reconstruction and Restoration Page 7of9 The Landscape Plan The landscape plan for the reconstructed house and addition is presented on Sheet L 1 of the reconstruction plans. As the historic house will be yellow with white trim, a classic Colonial Revival color schenle, the flowers along the sidewalk will be yellow daylilies and white carpet roses. The overall floral proposal includes dramatic flowers such as the Big Blue Lily and the Yellow Hot Poker. At the June 20 meeting staff will hand out to the HRB color images of the flowers, shrubs and vines proposed by the landscape plan. A traditional residential picket fence is proposed along the University Avenue sidewalk. Materials and Colors A materials and color board will be presented to the HRB at the June 20 meeting. These will be the materials and colors that were approved for the original 2008 rehabilitation project. These colors for the house are also indicated under the heading "Exterior color theme"on the elevation sheets of the reconstruction plans (Sheets A-106, A-107 and A-108). A note is appended stating that the "Contractor must schedule time for the Architectural Review Board to review "brush- outs" of all paint colors on the building and obtain approval of such colors prior start of painting." Staff will arrange for the HRB to view the brush outs as well. Lighting Plan The new lighting indicated on the reconstruction plans (on Sheet E-300) is located in the interior; the exterior lighting and site lighting is indicated as existing and is utilitarian. The applicant recently suggested to staff carriage style light fixtures for the historic house including three fixtures at the front porch. The applicant may present examples of lighting fixtures at the June 20 HRB meeting. Staff recommends that the HRB clarify the dimensions of any light fixtures presented so that fixtures that are too large will be avoided for this project. ENVIRONMENTAL REVIEW Pursuant to the requirements of the California Environnlental Quality Act (CEQA) the Project is categorically exempt from CEQ A per Section 15331, Historic Resource RestorationlRehabilitation. ATTACHMENTS Attachment A: Recommended Conditions of Approval Attachment B: Excerpt from the Historic Preservation Ordinance: "Enforcement" Attachment C: "564 University Avenue: Reconstruction Assessment Report" by Garavaglia Architecture, Inc., February 26,2010 Attachment D: "564 University Avenue: Focused Historic Structure Report," by Architectural Resources Group, February 2008 Attachment E: Original Approved Conditions of Approval, 2008 Attachment F: Consistency of the Revised Addition with the Secretary's Standards Attachment G: Reconstruction Project Plans (HRB Members only) 564 University Avenue Reconstruction and Restoration Page 8 of9 COURTESY COPIES Garavaglia Architecture Steve Schlossareck, RSR Capital, LLC Frederick Brave, Premier Design PREPARED BY: b~tt~.Q2uO_ Dennis Backlund, Historic Preservation Planner REVIEWED BY:~ ( V-------- STEVEN TURNER Advance Planning Manager 564 University Avenue Reconstruction and Restoration Page 9 of9 ATTACHMENT A Recommended Historic Conditions of Approval 564 University Avenue 1 OPLN -00218 1. The historic windows of project shall all be rehabilitated according to the recommendations under the heading "Windows" on Plan Sheet A-004, and according to the recommendations under the headings "Window Restoration Process" and "Window, Door, and Trim Restoration-Damaged Pieces Replacement" and "Methods for Removing Paint" on Plan Sheet A-005, and according to the recommendations under the heading "Windows" on page 44 of the report "564 University Avenue: Reconstruction Assessment Report" by Garavaglia Architecture, February 26,'2010 (Attachment C), with reference as needed to National Park Service Preservation Brief 9, "The Repair of Historic Wooden Windows," and National Park Service Preservation Brief 10, "Exterior Paint Problems on Historic Woodwork." 2. The historic beveled lap siding shall be reassembled and installed on the historic house according to the recommendations under the heading "Wood siding installation notes" on Plan Sheets A-106, A-107, and A-108, and with reference to Plan Sheets A-112, A-113, and A-114 ("Historical Materials Installations), and according to the recommendations under the heading "Siding" on pages 43-44 of the report "564 University Avenue: Reconstruction Assessment Report" by Garavaglia Architecture, February 26,2010 (Attachment C), with reference as needed to National Park Service Preservation Brief 10, "Exterior Paint Problenls on Historic Woodwork." 3. The'roof and three dormers of the historic house shall be rebuilt and rehabilitated according to the recommendations under the heading "Roof and Dormer" on Plan Sheet A-004, with reference to Plan Sheets A-112, A-113, and A-114 ("Historical Materials Installations). 4. Trim shall be reinstalled and rehabilitated according to the recommendations under the heading "Wood Elements" on Plan Sheet A-004, and under the heading "Window, Door, and Trim Restoration-Damaged Pieces Replacement" on Plan Sheet A-005, and according to the recommendations under the heading "Decorative features (columns, dentil molding, soffits, trim, etc.)" on page 44 of the report "564 University Avenue: Reconstruction Assessment Report" by Garavaglia Architecture, February 26, 2010 (Attachment C). 5. "The structural system design shall maximize retention of and be sensitive to the existing remaining fabric (including stored materials) and allow the overall design and form of the historic building to be reconstructed" as cited on page 41 of the report "564 University Avenue: Reconstruction Assessment Report" by Garavaglia Architecture, February 26,2010 (Attachn1ent C). 6. If the historic front entry door hardware is proposed for replacement, the style, color, and finish of the proposed new hardware shall be reviewed by the Historic Preservation Planner. Preservation of the historic hardware is recommended. 7. The style, color, and finish of the handrails of the front entry steps shall be reviewed by the Historic Preservation Planner. 8. The HRB and ARB subcommittees shall review a brush out of the approved yellow main wall color of the historic house in the field prior to the application of paint to the house. 9. The Historic Preservation Planner shall review the fixture designs and materials and bulb types of any exterior lighting that may be proposed during the course of the project. 10. No demolition or permanent removal of significant historic fabric that is not included in the project approval shall be carried out in any amount for any reason except with written permission by the Department of Planning and Comnlunity Environment. 11. The 2007 California Historical Building Code shall be applied to all eligible aspects of the historic rehabilitation of the building exterior and interior when needed to preserve character-defining features. 12. The Director of Planning's project approval letter, including the approved historic Conditions, shall be printed on one of the initial sheets of the Building Permit Plan Set (final construction plans). 13. The ten Secretary of the Interior's Standards for Rehabilitation shall be printed on one of the initial sheets of the Building Permit Plan Set (final construction plans). 14. The historical information on Sheets A-004 and A-005 of the HRB and ARB "Historic House Reconstruction" Plans shall be printed on one of the initial sheets of the Building Permit Plan Set (final construction plans). 15. The Historic Preservation Planner shall review the Building Permit Plan Set for consistency with the Director of Planning's approval based on the recommendation of the Historic Resources Board. 16. The Historic Preservation Planner shall participate in the Planning Department's Final Inspection of the completed project and will use the final report of Garavaglia Architecture acting as reconstruction observation agency as part of the Final Inspection. Attachment B 16.49.090 Enforcement. (a) Unlawful Alteration or Demolition. (1) Violation -Penalties. It is unlawful for a person or entity to denl0lish or cause to be demolished any significant building or portion thereof in the downtown area in violation of any of the provisions of this chapter. Any person or entity violating these provisions is guilty of a misdemeanor and, upon conviction of any such violation, such person shall be punishable by a fine of not more than one thousand dollars or by imprisonment for not more than six months, or by both such fine and imprisonment. (2) Civil Penalty. Any person or entity who demolishes a building or causes a demolition in violation of the provisions of this chapter may be liable civilly in a sum equal to the replacement value of the building or an amount in the court's discretion, not to exceed ten thousand dollars. (3) Injunctive Relief. The city attorney may maintain an action for injunctive relief to restrain a violation or cause, where possible, the complete or partial restoration, reconstruction, or replacement in kind of any building or site demolished, altered or partially demolished in violation of this chapter. (4) Restriction on Development. Alteration or demolition of a historic structure in violation of this chapter shall eliminate the eligibility of the structure's lot for any transfer of development rights, pursuant to the Palo Alto Comprehensive Plan, and such lot, if it is the site of an unlawfully demolished historic structure from which development rights have been transferred, shall not be developed in excess of the floor area ratio of the demolished structure for a period of twenty years from the unlawful demolition. A person or entity may be relieved of the penalties provided in this section if: (i) the unlawful alteration or demolition did not constitute a maj or alteration, as determined by the chief building official, or (ii) as to an unlawful alteration, the person.or entity restores the original distinguishing qualities and character of the building destroyed or altered. Such restoration must be undertaken pursuant to a valid building permit issued after a recommendation by the historic resources board and a finding by the city council that the proposed work will effect adequate restoration and can be done with a substantial degree of success. (b) Failure to Abide by Maintenance Regulations. (1) Abatement. The procedures set forth in Chapter 16.40 of the Palo Alto Municipal Code governing unsafe, dangerous or substandard buildings, whether in commercial or residential use, shall be applicable to any violations of Section J 6.49.080. (2) Misdemeanor. It is unlawful for any person or entity to fail to maintain any building in the downtown area designated as significant or contributory in violation of Section 16.49.080. Any such violation constitutes a misdemeanor punishable as set forth in Section 16.49.090(a)(l) above. Each day of violation constitutes a separate offense and may be separately punished. The chief building official and ordinance compliance inspector are authorized to exercise the authority in California Penal Code Section 836.5 and to issue citations for violation of Section 16.49.080. (3) Civil Penalty. Any person or entity who fails to maintain any building in the downtown area designated as significant or contributory in violation of Section 16.49.080 may be liable civilly in a sum not to exceed one thousand dollars. Each day of violation constitutes a separate offense for which a penalty nlay be assessed. http://www.amlegal.comlnxt/ gateway .dlllCalifomialpaloalto _ caltitle 16buildingregulations... 6/14/2012 (c) Remedies not Exclusive. The remedies provided by this section are not exclusive. (Ord.3721 § 1 (part), 1986) Page 2 of2 http://www.amlegal.comlnxtlgateway .dll/California/paloalto _ ca/title 16buildingregulations... 6/14/2012 ) 564 University Avenue, Palo Alto, CA Focused Historic Structure Report Mills arrived in Palo Alto in 1903 during a building boom in the new city. Little is known so far of his personal life except that he was a member of the Independent Order of Odd Fellows, America's largest 'fraternal society at the time. It appears that Mills was a friend of the builder John Dudfield, of the well-known DUd'field Lu mber Company located at Forest Avenue and Alma Street, as Mills died in 1917 at the age of 55 while staying for the weekend in Dud'field's cabin in Pescadero. Mills likely inspired his son, Curtis, to follow him in the building profession; a permit citation in the January 14, 1925 issue of the Palo Alto Times indicates that Curtis Mills built a house at 1175 Greenwood Avenue for Mary Mills (this citation along with the permit listing for 534 Forest strongly suggests that Mary Mills was a member of the A. N. Mills family).6 According to City Planning surveys of more than 9000 permit citations in the Palo Alto Times, there are only five buildings constructed by A. N. Mills in addition to 564 University (however, most permit citations during the period of Mills' career do not indicate the builder or the architect). The five buildings built by A. N. Mills include: 534 Forest Avenue: Mills built this two-story, Colonial Revival house in 1904 for Mary Mills, possibly his wife or mother. Mills lived in this house from 1904 until around 1915: The house is still standing and is mostly intact except that the walls have been coated in stucco and there is some alteration to the front porch that occurred when the house became a duplex at an unknown date. • 175 Webster Street: Mills built this two-and-a-half~story, Colonial Revival house for J. W. Brister in 1904. It survives essentially intact except for sensitive remodeling in the rear. The house was recently restored and is a neighborhood landmark. 401 Webster Street: Mills built this large, two-story, Colonial Revival house for W. S. Slade, a barber, in 1904. The house was asymmetrical with a complex pyramidal roof system that is visible in historic aerial photographs. The house was demolished in the 1970s to make way for the Webster House retirement community. • 623 Alma Street: Mills built this Armory building in 1910. It was demolished by the 1940s or earlier to make way for the large automobile businesses that located on this block. • 1312 Cowper Street: Mills built this restrained, Classical-Revival bungalow for W. W. Colquhoun in 1911. The house survives intact and is a contributor to the Professorville Historic District.7 ARCHITECfURAl REsOURCES GROUP Architects, Planners & Conservators, Inc. 5 'T1 lD 0' .., c: OJ .., tv o o 00 co o a N > L. ..c Q) u... 564 University Avenue, Palo Alto, CA Focused Historic Structure Report History of Use The Palo Alto City Directory listings show that Thomas Forbes was a long-time resident at 474 Everett Avenue and built the house at 564 University not for himself but for multi-family rental housing located on the soon-to-be-completed streetcar line that ran down University Avenue to Stanford University to the southwest. The streetcar line opened in 1906. The building has had a long history of residential use. Originally it was intended to provide housing to a number of short-term tenants throughout the first half of the twentieth-century. When Palo Alto's downtown commercial district expanded eastward in the 1950s and 1960s,8 the building changed in function from wholly residential to primarily commercial, and was leased to local businesses. In the 1970s, Forbes family members moved into the house, resuming the building's residential function until 2006. The Owner of 564 Universiiy Thomas Forbes (1869-1946) was the son of Richard Forbes (1821-1899), a native of Ireland,who / came to Palo Alto in 1899 to spend his last months in the home of his son, Thomas. Thomas was born in New Brunswick, Nova Scotia and came to Palo Alto in 1898. In approximately 1902 he married Winifred Hughes (1879-1946), and they had four children, Theresa (1911-1978), Thomas A., Joseph Henry, and James Richard. The Forbes were a closely knit family, and, in 1945 there was an article in the Palo Alto Times entitled "Pioneer Forbes family holds reunion." Thomas Forbes was a gardener and a construction worker, and he was a member of the Modem Woodmen of America, the third largest fraternal society in America at the time. The Modem Woodmen assisted its members in planning for financial security through providing life insurance and other services. Thomas's daughter Winifred grew up to become a librarian at Stanford University \ i: / 6 from the late 1920s to 1941 when she took a position until 1946 at the library of the University of California, Los Angeles. Thomas Forbes remained in the family home at 474 Everett until his death in 1946.9 The Occupants of 564 University The Palo Alto City Directories from 1904 to 1978 reveal that 564 University was built as a rooming house. Many short-term, single tenants, as opposed to families, occupied the building. The ARCHITECTURAL REsOURCES GROUP Architects, Planners ~ Conservators, Inc. ') ) ,1 \ ) 564 University Avenue, Palo Alto, CA Focused Historic Structure Report Interior The interior of the building is comprised of two floors over a daylight basement. Circulation on the interior is not arranged around corridors; rather, rooms open out into other rooms. The first floor contains the entry vestibule, kitchen, living and dining rooms, bathroom and storage room. A staircase, located to the north of the entry vestibule, leads to a small, central corridor on the second floor that accesses two large bedrooms at the west end, a bathroom, and three smaller rooms at the east end. All rooms on the second floor have closets. The interior layout of the rooms of the building has been retained since its construction. The interior also retains most of its original decorative features including sliding pocket doors, built-in wood cabinets, shelves, wood stairs and balustrade, and metal door hardware. Floors are made of wood, and walls and ceilings are constructed of plaster on lath. Rooms feature decorative elements such as chair and picture rails, baseboards, and wall comer moldings. The stairs to the second floor feature a simple wood post and balustrade. Some of the most notable features of the interior include an onginal built-in bench with a curved armrest and storage located at the foot of the stairs, and a full-height, built-in, wood cabinetry unit on the north wall of the dining room containing drawers at the bottom portion (missing hardware) and shelves in the upper portion of the unit. A mirror in the center of the cabinetry unit appears to have been a later addition. v. Statement of Significance and Period of Significance The building represents an intact example of an early twentieth-century, Colonial Revival style residence. Constructed by one of Palo Alto's 'first builders, A. N. Mills, for pioneer resident Thomas Forbes, the building remained within the Forbes family from its construction in 1904 until 2006. In addition to its long period of ownership, the building is also significant for its extensive residential history, extending from 1904 to 2006 in a location where many early twentieth- century residences were converted for commercial use or demolished. According to Palo Alto's Department of Planning, the building provided moderate-and low-:-income residents who could not afford automobiles a convenient location along the streetcar route on University Avenue; this type of rooming housing for short-term renters was important to the early social historyof Palo Alto.10 Once a typical residential rooming house structure in a primarily residential area of early twentieth- century Palo Alto, the building has more recently gained signi'Hcance as the last residential structure in University Avenue's commercial district. ARCHITECTIJRAL REsOURCES GROUP Architects, Planners f!r Conservators, Inc. 9 "T1 lD C" c: w ., tv o o CD ) ) ) J 564 University Avenue, Palo Alto, CA Focused Historic Structure Report Design Design is the combination of elements that create the form, plan, space, stnJcture, and style of a property. Although historic photographs of the building were not located through research for this report, the building appears to have retained its original architectural features, overall maSSing, form, and Colonial Revival style detailing. Apart from a missing portion of the chimney on the south elevation, the exterior has not been significantly altered. Interior partitions all appear to retain original locations and it is possible to understand the original circulation, configuration and room layout. Despite minor alterations in the 1950s and 1960s to accommodate commercial use, the building strongly conveys its Original design intent on both the exterior and the interior. Setting Setting is the physical environment of a historic property, constituting topographic features, vegetation, manmade features, and reJationships between buildings or open space. At the time of the building's construction, this area of University Avenue was predominantly residential, with 564 University Avenue being one of the first residences built on its block. Today, the setting of the building has changed completely, as 564 University Avenue remains the last residential structure in a commercial district of downtown Palo Alto. The neighboring buildings are one-story, concrete commercial buildings. With regard to the immediate setting, the front and rear yards retain very little plant material. The rear garage structure has been demolished. As such; the building's setting retains little to no integrity. Materials Materials are the physical elements that were combined or deposited during a particular period of time and in a particular pattern or configuration to form a historic property. Apart 'from replaced soffit boards, the exterior of 564 University Avenue appears to retain almost all of its exterior building materials. Workmanship Workmanship is the physical evidence of the crafts of a particular culture, people, or artisan during any given period in history or pre-history. The building retains a high level of workmanship ARCHITECTURAL REsOURCES GROUP Architects, Planners ~ Conservators, Inc. 11 "TI I'D 0' ., c OJ ., '" o o 00 ) tD o o N >- L. Rl :::J L. .0 OJ \,L. ) } / 564· University Avenue, Palo Alto, CA Focused Historic Structure Report 12 associated with its Colonial Revival stylistic details on the exterior and the interior. While the built-in cabinetry on the interior of the building is standard in nature, it is consistent with typical constnJction techniques and decorative styles of the period. Feeling Feeling is a property's expression of the aesthetic or historical sense of a particular period of time. The building retains its historical residential feeling and conveys this relationship to University Avenue through its full-width porch and projecting bays at the second story. In addition to the interior room arrangement, the building's overall residential feeling has been retained through its hipped roof, dormers. projecting bays, 'full-width porch, and interior built-in cabinetry. Association Association is the direct link between an important historic event or person and a historic property. 564 University Avenue is associated with the early development of Palo Alto, as it provided short- term housing along the University Avenue thoroughfare. The building is also associated with the Forbes family, having been commissioned by Thomas Forbes who arrived in Palo Alto in -1899. The Forbes family remained owners of the building from its construction in 1904 until 2006. Its historical associations with the Forbes family contribute to the building's overall integrity. In summary, the building has retained the majority of its historic features since .it was first constructed. The changes made to the building during a change in use from residential to commercial resulted in interior modifications that have been fairly minor. No signi'ficant exterior modi'fication has been made to the building since construction. Despite a significant chang~ in the building's setting, volume, massing, materials and original design intent is intact. Considering all aspects together, the building retains sufficient integrity. VII. Building Chronology This section. presents a chronology that includes important events related generally to the history of the city of Palo Alto, as well as events related specifically to the history of 564 University Avenue. ARCHITECTURAL REsOURCES GROUP Architects, Planners &-Conservators, Inc. ) \ 564 University Avenue, Palo Alto, CA Focused Historic Structure Report 1891 1894 1904 1906 1917 1946 1950 1952 1966 1977 1978 1995 2006 Stanford University opens11 Palo Alto becomes an incorporated city12 564 University Avenue constructed by A. N. Mills as a rooming house University Avenue streetcar line opens connecting downtown Palo Alto to Stanford University Death of builder, A. N. Mills Death of first owner, Thomas Forbes Theresa Forbes is first member of Forbes family to live at 564 University Avenue 564 University Avenue rented to commercial businesses -alterations made on the interior to accommodate the new use including new partition wall at foyer Residential use of 564 University Avenue resumes Theresa Forbes and Thomas A. Forbes, Jr. become sole occupants of 564 University Avenue Death of Theresa Forbes, Thomas A. Forbes, Jr. continues to live at 564 University Avenue Steel post and wire fence installed at rear of property Property sold to current owner, Aida L. Merrill Building Alterations In 1952 the building changed in function from residential to commercial. Alterations made to accommodate this change in function most likely included insertion of a large s,ingle-pane window at the interior partition wall between the kitchen and the foyer, the closing of the chimney, and removal of the rear entry door (currently stored in basement). The porch enclosure at rear of the house may have been an earlier alteration; no date for this modification has been located. These alterations, however, do not compromise the overall architectural integrity of the building and the residential character and feeling of the building remains intact. VIII. Illustrated Character-Defining Features and Spaces This section identifies the character-defining features of 564 University Avenue. A character- defining feature is an aspect of a building's design, construction, or detail that is representative of the building's function, type, or architectural style. Generally, character-defining features include specific building systems, architectural ornament, construction details, massing, materials, craftsmanship, site characteristics, and landscaping within the period of significance. For a historic ARa-llTECTIJRAL RESOURCES GROUP Architects, Planners t!r Conservators, Inc. 13 .., c w .., r-.J o o en ) 00 o o N 1.. 1.. ..0 CIJ u.. ) 564 University Avenue, Palo Alto, CA Focused Historic Structure Report 14 resource to retain its significance, its character-defining features must be retained to the greatest extent possible. An understanding of a building's character-defining features is a crucial step in developing and guiding a rehabilitation plan. The building retains a remarkable number of its original exterior character-defining features. Exterior Character.Defining Features Overall proportion and massing Boxy, rectilinear plan Two-story, wood-frame structure Full-width, one-story porch with wood flooring and bevel-sided closed rail Unreinforced brick foundation13 HOrizontal, wood, false bevel drop siding at all elevations Wood comer boards Window openings Variety of window types, predominantly wood, one-over-one, double-hung windows with lamb's tongues, but also casement windows and an awning window Hipped roof with dormers at west, north, and south elevations Boxed soffit Porch columns Wood porch entry steps with cheek walls Main entrance door, half-glazed upper and wood-paneled lower portion door Wood shingle siding at dormer Comer projecting bays at second story with modillion supports Dentil molding at eaves Decorative brackets Bay window at south elevation Landscaped garden (no longer extant) Brick chimney (partially demolished) ARCHITECTURAL REsOURCES GROUP Architects, Planners &' Conservators, Inc. ) ) ) / 564 University Avenue, Palo Alto, CA Focused Historic Structure Report Soffit boards (replaced) One-story garage structure at southeast corner of parcel (no longer extant) Interior Character-Defining Features Interior finishes, wood and plaster Interior layout and organization of rooms as an example of an early twentieth-century . residential floor plan • Wood flooring Wood cabinetry in dining room (hardware missing) Wood baseboards Wood stairs, post and balustrade Wood bench at base of stairs • Wood picture rails Wood chair rails • Wall comer decorative moldings Wood-paneled doors including half-glazed main entrance door Wood pocket doors ARCHITECTURAL REsOURCES GROUP Architects, Planners &' Comervators, Inc. 17 " CD C'" ., c OJ ., I\J o o co ) to o o N L.. L.. .D OJ LL. ) ) 564 University Avenue, Palo Alto, CA Focused Historic Structure Report 22 intrusion, damage, and limited areas of staining. Flooring Original wood floors throughout the interior are in good condition with some sloping areas due to settlement. . Built-in elements All built in wood cabinetry have been recently painted but remain in good condition . Door hardware Doors and wood cabinetry retain most of their original metal hardware and are in good condition. There are areas of missing hardware, particularly those belonging to the cabinetry unit in the dining room, as well as recent painting over door hardware. x. Proposed Project The proposed project includes rehabilitation of the building for commercial purposes. The proposed use is as a restaurant. The proposed work entails the following: Relocation of the existing building approximately 16 feet toward the front lot line and 18 inches to the south so that the University Avenue (main) fagade of building is closer to the existing setbacks of adjacent buildings; Seismically upgrade existing building; Construct new concrete foundation; Provide new seismic bracing at first floor interior wall; Repair roof and shingles; Replace gutters and downspouts; Remove existing fireplace chimney at south fayade; Remove (3) windows at north fayade; openings to be infilled with siding to match existing; Install new windows in place of existing fireplace chimney at south fa<;ade; Raise the 'front porch level to achieve compliant level change at main entrance west fayade; Replace broken glazing in windows; Sprinkler windows at the south fayade if required; Repaint existing building exterior; ARCHITECTURAL REsOURCES GROUP Architects, Planners & Conservators, Inc. ) 00 o o N L.. L.. D (JJ u.. ) \ ) 564 University Avenue, Palo Alto, CA Focused Historic Structure Report 24 regard to rehabilitation of the existing building. The City of Palo Alto has designated the building as a Category 2 Historic Building. Built in 1904, the Colonial Revival style building is in fair condition though shows signs of neglect in certain areas. The proposed conversion from private to public use entails alterations, including code upgrades, to the historical character-defining< features of the building. This report contains recommendations based on The Secretary of the Interior's Standards for the Treatment of Historic Properties with Guidelines for Preserving, Rehabilitating, RestOring and Reconstructing Historic Buildings (The Standards). The Standards provide general information for stewards of historic resources to determine appropriate treatments. They are designed to enhance the understanding of basic preservation principles, and are neither technical nor prescriptive, but are intended to promote responsible preservation practices that ensure continued protection of historic resources. Any alterations to the significant character-defining features should be approached carefully and sensitively, following The Standards. Generally, a project that meets the Secretary of the Interior's Standards for the Treatment of Historic Properties is a project that will have minimal effect on the property. There are four treatments under The Standards: restoration, rehabilitation, preservation and reconstruction. Initial measures should focus on maintenance and repair of historic fabric to protect and stabilize the building. The conversion of the structure from private to public will entail alterations to the original fabric in order to comply with current building regulations. As such, rehabilitatipn of 564 University Avenue is deemed the most appropriate treatment. Further, as a Category 2 historic building in the City of Palo Alto, the California Historic Building Code (CHBC) should be applied to the project to achieve greater flexibility in solving code issues as it is converted to commercial uses. Early consultation with the Building Official is recommended with regard to use of the CHBC. Recommendations for Roof Treatment • Retain and preserve overall functional and decorative features of roof. Replace shingles with new asphalt composition shingles in a configuration that matches the existing pattern; shingle color should be in keeping with the City of Palo Alto's design guidelines. Replace existing gutters with new gutters to be concealed behind the wood soffit to match existing design. ARCHITECTURAL REsOURCB GROUP Architec[s, Planners & Conservators, Inc. ) ) ) 564 University Avenue, Palo Alto, CA Focused Historic Structu re Report Recommendations for Site Work Maintain current height of existing building if possible; if raising or lowering the building is necessary, it is recommended that the height difference not be changed by more than one foot. If it is not feasible to move building forward, design a landscaped foreyard that would visually connect the house to sidewalk. Recommendations for Exterior Retain and preserve all exterior architectural features. Retain eXisting siding that is in good! fair condition; if siding is in poor condition and irreparable, install new siding that matches existing in style and material. Sheath new concrete foundation in brick veneer to match existing brick foundation. Seismic bracing will be at the first floor interior wall. Recommendations for Window Treatments •. Wherever possible, repair existing windows rather than replace. If window replacement is necessary, new windows should be similar to existing windows in type, size, materials, placement and proportion. Fenestration at the main fayade should remain in place; it is recommended that no new window openings be created at thisfa9Bde. Windows installed in place of existing fireplace chimney at east fa9Bde of existing building should be of similar style and size to the existing windows. Recommendations for Interior Materials and Finishes Treatment • Retain as much original interior moldings, built-ins, and interior features as possible. Retain the existing intelior window trim, particularly on the front-facing fa~de and the west-facing fac;ade. Repair existing interior wood floors rather than replace. Retain existing interior stair if non-compliant conditions can be corrected with minimal impact to the historical features, or replace stair with a stair of similar design and configuration. Existing pocket doors could be fixed in the open position to satiSfy the Fire Marshall's comments, thereby allowing the historic wood doors to remain within the building. (Note: al interior doors will be removed.) Recommendations for Building System Repairs/Upgrades ARCHITECWRAL RESOURCES GROUP Architects, Panners &-Conservators, Inc. 25 "TI CD CT C QI r-..J o o CD ) ) 564 University Avenue, Palo Alto, CA FoclJsed Historic Structure Report Historic Buildings. Washington D. C., U. S. Department of the Interior, National Park Service, 1995. Endnotes -n (D 0'" c OJ ., "" o 1 Municipal Code Section 16.49.020(b). On May 14, 2007, the Historic Resources Board and staff 0 co recommended that the Palo Alto City Council reclassify the property at 564 University Avenue from a contributory building under Category 4 of the Municipal Code of Historic Preservation. 2 Weeks, Kay D. and Anne E. Grimmer, The Secretary of the Interior's Standards for the Treatment of Historic Properties with Guidelines for Preserving, Rehabilitating, Restoring, and Reconstructing Historic Buildings. 3 Historic Resources Board Staff Report, Dennis Backlund, Historic Preservation Planner, April 4, 2007. 4 Sanborn Fire Insurance Maps, 1904-1924. 5 Sanborn Fire Insurance Maps, 1949. 6 All information in this paragraph above was provided by the Department of Planning and Community Environment of Palo Alto. 7 All information in this paragraph above was provided by the Department of Planning and Community Environment of Palo Alto. s May 14, 2007, Memo from Department of Planning and Community Environment to Honorable City Council. 9 All information in this paragraph above was provided by the Department of Planning and Community Environment of Palo Alto. 10 Ibid. 11 Gullard and Lund, pg. 167. 12 Ibid., pg. 165. 13 Ann Hawkinson Memo, April 27, 2007. A ROllTECTURAl REsOURCES GROUP Architects, Planners &-Conservators, Inc. 27 ) J ) 564 University Avenue, Palo Alto, CA Focused Historic Structure Report Appendix A: The Secretary of Interior's Standards for Rehabilitation ARCHITECTURAL REsOURCES GROUP Architects, Planners & Conservators, Inc. .., c Q,J rv o o 00 ATTACHMENT E 2008 Original Conditions of Approval .564 University Avenue 08PLN-00079 1. The proj ect shall be constructed in substantial conformance with plans dated April 21, 2008 which are on file in the City of Palo Alto Planning Division, except as modified by the conditions below. 2. The State Historical Building Code shall be applied to the rehabilitation of the historic building when needed to preserve character-defining features. 3. The rehabilitation, restoration, and new construction at 564 University Avenue shall be based on the recommendations on pages 23-26 of the submitted "Focused Historic Structure Report," authored by Architectural Resources Group, Inc., and dated February 2008 (except that compliance with the "Recommendations for Interior Materials and Finishes Treatn1ent" shall be voluntary), and also the recommendations of "Preservation Briefs" #9 and #10 that are attached to the "F ocused Historic Structure Report." 4. Subsequent to relocating the historic building forward on the site, the front porch entry stairs shall be reconstructed to include five risers if feasible, as determined by an HRB subcommittee of three Board members, and shall not include fewer than four risers. 5. Project materials and colors revised subsequent to the HRB review and recommendation shall be submitted to the Department of Planning for review by the Historic Preservation Planner or by a subcommittee of the Historic Resources Board. 6. The final designs and bulb types for project exterior lighting shall be submitted to the Historic Preservation Planner for review. 7. The final construction Plan Set shall be submitted to the Historic Preservation Planner for review for consistency with the recommendation of the Historic Resources Board. 8. The Planning Department's letters of project approval, including the approved conditions, shall be printed on the construction Plan Set. ATTACHMENT F Recon1illended Findings for Consistency with the Secretary of the Interior's Standards for Rehabilitation of Historic Buildings 564 University Avenue: The Revised Rear Addition 10PLN-00218 There are 10 Standards for compliance with the Secretary of the Interior's Standards for Rehabilitation of Historic Buildings. Each standard is listed below with evaluation determinations and commentary. "The proposed project is rated relative to each standard as: • "compliant' (little or no impact on the resource); • "marginally compliant" (the resource is impacted and modifications recommended, but the level of impact is not sufficient to warrant re-evaluation), and • "not compliant" (the resource would be negatively impacted by the proposed design as well as its eligibility for listing as an historic resource). Overall compliance with the Secretary's Standards is not necessarily a direct sum of the level of compliance for each standard; instead, overall compliance is the. final conclusion on the overall impact of the project on both the design and historical significance of the entire building." Secretary of the Interior Standards for Rehabilitation S-1 A property shall be used for its historic purpose or be placed in a new use that requires minimal change to the defining characteristics of the building and its site and environment. Evaluation Commentary: The revised rear addition to the historic house will be placed in an office use that allowed a revised residential type of design for the addition of enhanced compatibility with the historic house. The project, therefore, is compliant with Standard 1. S-2 The historic character of a property shall be retained and preserved. The removal of historic materials or alteration of features and spaces that characterize a property shall be avoided. Evaluation Commentary: The revised rear addition did not remove any character- defining features or spaces of the historic house. The project, therefore, is compliant with Standard 2. S-3 Each property shall be recognized as a physical record of its time, place, and use. Changes that create a false sense of historical development, such as adding conjectural features or architectural elements from other buildings, shall not be undertaken. Evaluation Commentary: The revised rear addition is composed of modem compatible fenestration and wood siding that is different from that of the historic house. The project, therefore, is compliant with Standard 3. S-4 Most properties change over time; those changes that have acquired historic significance in their own right shall be retained and preserved. Evaluation Commentary: The revised rear addition did not impact any features of the historic house that have acquired historic significance in their own right. The project, therefore, is compliant with Standard 4. \ S-5 Distinctive features, finishes, and construction techniques or examples of craftsmanship that characterize a property shall be preserved. Evaluation Commentary: The revised rear addition did not impact any distinctive features, finishes, construction techniques, or examples of craftsmanship that characterize the historic house. The project, therefore, is compliant with Standard 5. S-6 Deteriorated historic features shall be repaired rather than replaced. Where the severity of the deterioration requires replacement of a distinctive feature, the new feature shall match the old in design, color, texture, and other visual qualities and, where possible, materials. Replacement of missing features shall be substantiated by documentary, physical, or pictorial evidence. Evaluation Commentary: The revised rear addition did not impact any character- defining features of the historic house The project, therefore, is compliant with Standard 6. S-7 Chemical or physical treatments, such as sandblasting, that cause damage to historic materials shall not be used. The surface cleaning of structures, if appropriate, shall be undertaken using the gentlest means possible. Evaluation Commentary: No chemicals or sandblasting will be used in constructing the revised rear addition. The project, therefore, is compliant with Standard 7. S-8 Significant archeological resources affected by a project shall be protected and preserved If such resources must be disturbed, mitigation measures shall be undertaken. Evaluation Commentary: There are no known archeological finds at this location. Therefore, Standard 8 does not apply to the project. S-9 New additions, exterior alterations, or related new construction shall not destroy the historic materials that characterize the property. The new work shall be differentiated from the old and shall be compatible with the massing, size, scale and architectural features to protect the historic integrity of the property and its environment. Evaluation Commentary: The revised rear addition was generally designed in a traditional residential style which is compatible with the historic house. The addition is differentiated from the historic house because its roof is lower, its 3" beveled lap siding is wider than the 2" beveled lap siding of the historic house, the entry to the addition is recessed which allows the form of the rear of the historic house to be defined, the fenestration of the entry is designed in a compatible contemporary style,and the more traditional fenestration of the rest of the addition exhibits modem manufacturing techniques and materials. The project, therefore, is compliant with Standard 9. S-10 New additions and adjacent or related new construction shall be undertaken in such a manner that if removed in the future, the essential form and integrity of the historic property and its environment would be unimpaired Evaluation Commentary: It would be possible to remove the recessed revised rear addition and retain the original form of the historic house. The project, therefore, is compliant with Standard 10. City of Palo Alto Page 1 1 2 ATTACHMENT E 3 4 Wednesday, June 20, 2012 5 REGULAR MEETING – 8:00 AM 6 Council Chambers 7 Civic Center, 1st Floor 8 250 Hamilton Avenue 9 Palo Alto, California 94301 10 11 ROLL CALL: 12 13 Board Members: 14 Martin Bernstein, Chair Staff: 15 Roger Kohler, Vice-chair Diana Tamale, Admin. Associate 16 David Bower Steven Turner, Advance Planning Manager 17 Scott Smithwick Dennis Backlund, Historic Planner 18 Patricia DiCicco 19 Beth Bunnenberg 20 Michael Makinen 21 22 23 PUBLIC HEARING PROCESS 24 25 Please be advised the normal order of public hearings of agenda items is as 26 follows: 27  Announce agenda item 28  Open public hearing 29  Staff recommendation 30  Applicant presentation – Ten (10) minutes limitation or at the discretion of the 31 Board. 32  Historic Resources Board questions of the applicant/staff 33  Public comment – Five (5) minutes limitation per speaker or limitation to three 34 (3) minutes depending on large number of speakers per item. 35  Applicant closing comments – Three (3) minutes 36  Close public hearing 37  Motions/recommendations by the Board 38  Final vote 39 40 HISTORIC RESOURCES BOARD VERBATIM MINUTES City of Palo Alto Page 2 1 2 NEW BUSINESS: 3 4 1. 564 University Avenue [10PLN-00218]: Request by Steve Schlossareck, RSR Capital, 5 LLC, owner, for Historic Resources Board review of a proposed reconstruction, 6 rehabilitation, and restoration of a deconstructed 1904 Colonial Revival building listed on 7 the City’s Historic Inventory in Category 2, and review of design revisions to the 8 previously approved new rear addition. Zone District: CD-C(P) 9 10 Chair Bernstein: Move to New Business, 564 University Avenue. Request by Steve 11 Schlossareck, I hope I pronounced that correctly. Yeah, perfect, thank you. RSR Capital, 12 LLC, owner, for Historic Resources Board review of a proposed reconstruction, 13 rehabilitation, and restoration of a deconstructed 1904 Colonial building, Revival 14 building, listed on the City’s Historic Inventory in Category 2, and review of design 15 revisions to the previously approved new rear addition. Zone District: CD-C(P). Staff, 16 so there’ll be a report. 17 18 Mr. Turner: Yes. Good morning Chair Bernstein, Steven Turner, Advance Planning 19 Manager. We’re happy to finally bring this project to you, 564 University Avenue. It’s 20 been a long time coming, but that doesn’t mean that not a lot of hard work has been 21 undertaken by both Staff and the Applicant and the Applicant’s architects to get to this 22 point. And so this represents a major milestone in the rehabilitation of this building. And 23 Dennis Backlund our Staff Historic Preservation Planner will be giving the Staff Report 24 followed by a presentation from the Project Architect. So with that I’ll hand it over to 25 Dennis. Thank you. 26 27 Dennis Backlund, Historic Planner: Thank you and good morning Members of the Board. 28 The project that we have today for the reconstruction of this Category 2 landmark is 29 unlike any other project that we have had before. It is the first use of a provision that 30 heretofore has been almost unknown, kind of hiding away at the very end of the Historic 31 Preservation Ordinance in a section that is called “Enforcement.” And it provides that a, 32 a house or building that was unlawfully altered or demolished or some other scenario 33 leaving the building compromised that that action would normally carry the penalties for 34 which purpose the Enforcement section mainly exists, but there is a provision that was 35 put in in about 1979 and was approved by the City Council when the Ordinance and the 36 new Historic Resources Board were approved in 1980, and that provides that such 37 unlawful alteration or demolition can be rectified without financial or other penalties if 38 the parties involved reconstruct the property according to a finding that is in the 39 Ordinance. 40 41 And that finding opens our recommendation and is the basis of all of the work that we 42 have done to try to make that finding come to life and to be fulfilled in the case of this 43 landmark in the prominent gateway to the Palo Alto downtown, to have an outcome that 44 would be stellar. And most of you know the, the story that you had approved a 45 rehabilitation project for this almost entirely intact house, almost no alteration since 1904. 46 And you approved the rehabilitation of the building and the new rear addition that would 47 generate a floor area bonus that would allow the rear addition to extend back nearly to the 48 City of Palo Alto Page 3 back property line. And the owner at the time regarded a building of that size, the house 1 plus the addition, as essential for the prospective tenants that they were talking to who 2 had expressed their space needs. So the Historic Resources Board approved that project 3 and the, the permit was issued and the construction began in early 2009. And so we 4 watched this construction proceed and by all appearances the review was over and we 5 were going to achieve this approved project. 6 7 And then according to the contractor that was involved, as was said at the time without 8 the owner’s knowledge, he was charged with putting a steel frame in the building, both 9 the historic house and the addition for seismic reasons. And he was having a dilemma 10 figuring out how they were gonna insert the steel beams into the historic house. And so 11 the conclusion he came to was that he would deconstruct the entire top part of the house 12 and part of the first floor, build the steel frame, and then bring back the pieces in storage 13 and build it around the steel frame. The dilemma was that the City was not informed of 14 this. The action was simply carried out and that led to the invoking of this Ordinance 15 provision for reconstruction. 16 17 The City, if at all possible, did not want to lose this resource and it was a very great deal 18 of work to put together a reconstruction plan. Part of the difficulty was if the City had 19 been informed there are state of the art procedures for deconstructing a house that are 20 quite different from the way that it was done. And it involves taking the house apart in 21 much larger pieces. There are, there are illustrated standards for this on the internet. And 22 we did a project just like that at the Water Tower at 345 Lincoln. That was done 23 according to standards and there was no trouble reassembling that. We did not need a 24 reconstruction plan at this level of detail. But because it was taken apart in much smaller 25 pieces, that led to the work that has occupied us for the last couple of years. The owner 26 decided not to continue the project, rather to sell the property to someone who would 27 continue the project and those are the current owners and their team will be speaking to 28 us this morning. And so that is, that’s the introduction to the project. 29 30 The plan itself is a plan set that is very different than what you have seen before because 31 it is about not strictly planning issues, except in the invoking of the Secretary Standards. 32 These are construction issues and yet the Ordinance mandates, I think very correctly, that 33 the Historic Resources Board must review those plans and make a recommendation to the 34 City Council if the plans show the two part finding Part 1, the proposed work will affect 35 adequate restoration and the finding Part 2, that the proposed work can be done with a 36 substantial degree of success. 37 38 And we wrote a recommendation a little different than has been presented to the Board 39 before because that two part finding is in language of long ago that only becomes clear in 40 a context. We provided the context why there will be adequate restoration we said 41 because of these factors that the Staff and consultants have done in inventorying, 42 cataloguing, properly storing all of these pieces, and determining that there is enough left 43 to reconstruct the house. That was quite a lot of work to go into storage and see all these 44 loose pieces and sort of put them together mentally to determine, yes there’s enough here; 45 when this is reassembled we are going to get a return of this house. 46 47 And then the second part needs a little further explanation. The work can be done with a 48 substantial degree of success. That’s the finding Part 2 that you need to recommend to 49 City of Palo Alto Page 4 the Council. What does success mean and how do we know that we’re going to get it? 1 But the Ordinance says this must be done. And so we gave reasons for that, and the 2 reasons focus on the Historic Consultant. We’ve seen many projects where a Historic 3 Consultant retained by the City at the expense of the Applicant was engaged to look over 4 a project and make advice, advisory statements to the City why it would comply or 5 perhaps as drawn currently might not meet the Secretary Standards. 6 7 The Historic Consultant in this project has played the largest role that has ever been done 8 for a historic project and the reason, as I mention in the Staff Report is that this vast array 9 of construction needs for the house involve a lot of technical knowledge about 10 construction that while known to the building Staff here is not necessarily known to those 11 who are engaged in Planning. That is zoning review, ordinance review, a zoning review, 12 things like that. And so we hired a firm who had already begun to help us on some 13 aspects of the project and they had extensive construction expertise. 14 15 So the plans that you see contain a massive construction information. We did not intend 16 or expect either the Board or the Staff to give formal approval to all of these because it’s 17 not what we usually review, but we did need plans that showed all the details of this 18 construction so that the plan set becomes a document that assures you, assures Staff and 19 the greater community that nothing has been overlooked. And how these plans came to 20 be is the result of a great effort on the behalf of the Applicant in dialogue with the 21 Historic Consultant and then also dialoguing with Staff. A three-way conversation on 22 how best to do this project that has extended over many months with a long series of 23 formal memorandums going back and forth raising issues, resolving issues until there 24 appeared to be no issues left. We have covered everything that could arise in the 25 construction of this house. 26 27 And all that mass of building detail, we have gone over all of that and accounted for it in 28 either of two ways. The issues are either in the conditions of approval, and you saw there 29 were 16 of those, or they are on the plans, or on critical items like the siding installation, 30 the rehabilitation of the windows, and the trim, and the rebuilding of the roof. Critical 31 items like that became both conditions and fully showed, shown on the plans. And then 32 we gave a number of directives of the information that is to appear on the building 33 permits, that’s so that every contractor involved knows what is expected. 34 35 And so that was the plan set that you see. Our great goal was to see if, as we 36 recommended, if the Board was assured that the information appears to be complete and 37 that the house constructed according to all of these details, the keynotes, and other 38 indicators in the plans would result in a proper rebuilding of this house. And that was a 39 finding made by our Historic Consultant after many, many months of review and 40 judgment on this property and staff has been fully involved in this. 41 42 So I do not recall any other project where there’s been a three-way united effort of the 43 Applicant, the City’s Historic Consultant, and several members of the Staff working for 44 month after month after month to produce the plan set that you see today. And we 45 reached at the end of that process the ability to make the recommendation that we did. 46 There’s enough material and the methodologies are in place to effect the adequate 47 restoration and reconstruction of this house and two that it’ll be done with a substantial 48 degree of success. 49 City of Palo Alto Page 5 1 That second finding to close my presentation, involves an action by our Historic 2 Consultant that also has never been done before. How do we really assure success? 3 Well, the party, namely the Historic Consultant, who’s been intimately involved in the 4 development of these plans will be in a series of visits to the site during the 5 reconstruction and then offering reports or meetings with the City how things are going 6 all the way through the reconstruction. That the reconstruction is proceeding according 7 to these very detailed plans, that the reconstruction is going according to the 16 8 conditions of approval, that the reconstruction is also in harmony with the original 9 conditions of approval which you saw in Attachment E, and finally that all of that is in 10 full compliance with the 10 Secretary Standards. 11 12 The house rehab was approved under the standards in 2008, but because we’re doing a 13 rebuild there will be ongoing monitoring under the Secretary Standards that make sure 14 that it conforms to the original approval that you recommended. And so those are, those 15 are some of the highlights of this and we’re looking forward to the Board’s comments on 16 the plans and questions about the Staff Report. 17 18 Chair Bernstein: Great, thank you Dennis. 19 20 Mr. Turner: Yes, and thanks Dennis. At this time I’d like to invite the Applicant to make 21 their presentation. 22 23 Chair Bernstein: And on that note just for members of the public who have not been 24 before so I’m just gonna also read the, our normal process. So, as Mr. Steve just 25 mentioned Applicant presentation, you’ve got, be 10 minute presentation. After that the 26 Historic Resources Board will be open for questions to either you or the staff, and then 27 public comment, and then Applicant closing comments if you like for three minutes, and 28 then we’ll close the public hearing, and then Motions and recommendations by the 29 Board, and then a final vote. So please, welcome. 30 31 Steve Schlossareck, Owner of RSR Capital, LLC: Thank you very much, and Dennis 32 thank you very much for that very nice summary. So this is a set of 10 or 15 slides to just 33 give you a little background. Yes? 34 35 Chair Bernstein: And also, because we’re being recorded, we’ll just need to hear your 36 name for the record please. 37 38 Mr. Schlossareck: Oh, Steven Schlossareck. 39 40 Chair Bernstein: Thank you, welcome. 41 42 Mr. Schlossareck: Thank you. So just as background we thought it would be important to 43 just take you through briefly who’s involved. The owner of the property is RSR Capital. 44 That’s actually a group of local investors, and then myself and Rick Bleszynski, right 45 here, manage the RSR Capital. Both of us have a background in the technology industry, 46 so we’ve been doing this in a very team oriented manner and we view everybody as a 47 part of the team. We know that previously a lot of the problems occurred because there 48 wasn’t good communication, it wasn’t really a team. So we have our own Construction 49 City of Palo Alto Page 6 Manager, which is Slava. He is not here, he had another appointment that he had to take 1 care of, but he actually works for RSR Capital. And then our General Contractor is 2 Vadeem, right there. He has got quite a bit of experience in both commercial and 3 residential projects. He’s also done historic projects in the past, so has quite a bit of 4 experience in old houses and how to recondition things. The Architects, Fred and Andre, 5 who are right there, have been working very hard on this and they as well have quite a bit 6 of experience doing historic buildings. And then of course you know about Garavaglia 7 and the City. We very much see them as a part of the extended team and as Dennis said, 8 you know, we really so far and all the way through the end of this project will be making 9 sure there’s very strong communication between everybody. 10 11 Our primary goals as you know is to accurately reconstruct the building and to 12 rehabilitate it. We want to return it to a condition that both the City and we and 13 everybody can be very proud of. Of course we want to retain the Category 2 standing 14 and improve the overall look of the downtown area in that area. A key part of this is 15 using as much of the materials as we can. We think that we’ll be able to use substantial 16 amount of it. And as I mentioned we’re gonna, we want to work in a team oriented 17 manner to make sure that this is done properly. And because RSR Capital will be doing 18 additional projects on the peninsula, it’s very important to us that we have a good 19 reputation for quality and trust. So we really do care how this turns out. And of course 20 the construction itself we want to make sure that there’s, it’s efficient and that there’s a 21 minimal impact on the neighbors and the City. We’ve already gone and talked with the 22 owners of the adjacent properties so they know who to talk to if there’s a problem. They 23 in essence are part of our eyes and ears, part of the team that are there more than we are. 24 And of course we want a long term quality tenant. 25 26 You probably know more of the background than we do, but the prior, and Dennis 27 certainly went through a lot of these details so I won’t spend a lot of time here, but the 28 prior owner was developing the property. They actually had a Crustacean restaurant as a 29 tenant and during the construction the second floor was removed. The architect and the 30 contractor, they are no longer involved, but we have had access to information that we 31 needed. 32 33 The construction was on hold for two years. We purchased the property almost a year 34 ago in September of 2011. Very quickly after that we cleaned up the site cause there 35 were a lot of safety issues which I’ll show you in a moment. And then we’ve been going 36 through the process that Dennis very, did a good job describing with Garavaglia and the 37 City to develop the plans and some of the pictures on the wall, some it might be easier to 38 see those cause they’re larger. Show those plans. 39 40 We think that we’ve got an improved plan to the plan that was approved before for the 41 restaurant. There’s quite a few structural improvements, the, we think that there are 42 safety improvements. For example there’s additional stairs, so that we think that people 43 will be able to, if there were an emergency such as an earthquake or something, be able to 44 get out of the building more easily and quickly. The grounds will be more consistent 45 with the building as it was in the early 1900’s. It won’t be structured as a restaurant, it’ll 46 be an office building. The plants are more consistent. There’ll be a picket fence. The 47 lighting fixtures are period appropriate. 48 49 City of Palo Alto Page 7 We will be spending a lot of time on the attention to details and I think Dennis referred to 1 this, details such as how the siding actually connects so that it looks proper and, you 2 know, a lot of attention to those details is important to do this right. We think that there 3 are improved aesthetics. The, the old plan actually had a lot of mechanical things on the 4 roof. We’ve moved a lot of that down into the basement, so just externally the building 5 will look much nicer. 6 7 The status of the property when we purchased it, there was, there was open to the 8 elements. There was easy public access. The fence could easily be moved aside. 9 Anybody could’ve walked in. And as you can see there, there’s essentially a hole in the 10 ground. Anybody could’ve fallen in very easily. It was very dangerous. There’s a lot of 11 trash on the property so when we took it over we immediately cleaned everything up. 12 We protected it from the weather, there’s now locked fencing so you can’t get in unless 13 you go through the effort of actually trying to climb the fence. We’ve taken safety 14 precautions as you can see there’s wood there so that nobody can fall into the hole. All 15 the trash has been removed, and we’ve put gravel down so that, you know, to reduce dust 16 and just impact on the surrounding area. 17 18 We went through an extensive process of inventorying all of the small pieces and 19 evaluating all of the small pieces. Pictures were taken of everything. Charts were 20 developed that go through each piece and describe its condition and what needs to be 21 done in order to recondition it. So it was a very extensive process and took quite a long 22 time. Part of that process was actually detailing out a plan of how to recondition each of 23 these pieces. Those pictures are representative, they are not actually pieces from the 24 building, but it shows for every possible scenario that the contractor could run into, 25 exactly what they’re supposed to do to recondition it and Vadeem has been though this 26 many times and what he’ll actually do if he runs into something, something where there’s 27 a question he’ll take a picture, he’ll contact the City or Garavaglia or both in order to 28 make sure that whatever steps he’s taking are the right steps and that everybody agrees 29 that they’re the right steps. 30 31 The team also went through a very extensive process of taking all of the pieces out of 32 storage and in the storage area actually putting them back together. And in the process 33 assuring that we had the materials that we needed to reconstruct, but also part of that 34 process was marking all the pieces, putting them back into storage. We actually had to 35 get more storage space to that it could be put back in in order so that when it’s taken out 36 it can be put back up properly. So, on the wall you can see there’s more pictures that are 37 actually in the plan. Every wall of the building was reconstructed and pictures taken. So 38 there’s a good record of everything as well. 39 40 From all of that then the plan was developed, which I think each of you have a copy of 41 the full plan so I won’t spend a lot of time on that, but we went through several rounds of 42 revisions with Garavaglia. And then after that we even went through more rounds with 43 the City’s Planning Department. And we very much appreciated that input too because 44 we believe that all of that input enabled us to have a much stronger and better plan. 45 46 The exterior details just a little bit about it, you can see the lighting that we’ll be using 47 which is consistent with the Colonel Revival period. We’re gonna stick with the same 48 color scheme that was approved previously. That color is probably not exactly accurate; 49 City of Palo Alto Page 8 it’s hard to get exact colors off the internet. The plants will be consistent with the color, 1 and will be different than what was, you know the prior plan when it was a restaurant. 2 So, you know, we’ll have white roses and yellow flowers, all it’ll all look very nice with 3 the building color. That’s, that picket fence there is very close to the picket fence that 4 we’ll be building. That fence is actually in Los Gatos and there’s a house that was 5 recently reconditioned there from the same period and so we thought that would be good 6 for you to see a picture of what will actually be there on the sidewalk. And this is a 7 rendering there’s another picture on the wall there, but a rendering of what the completed 8 building will look like along with the grounds. 9 10 And just to conclude, we think that we have a very strong team, a really good plan. 11 We’re grateful for your trust and the City’s trust in us to do this properly. And, you 12 know, we’re gonna continue working as a team with Garavaglia and the City. There’ll be 13 very strong communication. And we will achieve an accurate reconstruction of this 14 building and recondition it. 15 16 Chair Bernstein: Thank you and is it appropriate to say spasiba? Ok. That’s thank you. 17 Yes. Steven. 18 19 Mr. Turner: Perhaps before Board Member questions I might want to invite one other 20 person up to the microphone for a brief presentation, that’s the City’s consulting architect 21 group for this project, Garavaglia Architecture. And representing Garavaglia is Chris 22 Lutjen. And if he could come up and just give a brief overview about his firm’s 23 participation and his thoughts regarding this process and the outcome. So Chris, thank 24 you. 25 26 Chris Lutjen, Garavaglia Architecture: Thank you. 27 28 Chair Bernstein: And Chris, welcome. Yes. 29 30 Mr. Lutjen: Thank you, good morning. As Steven said, my name’s Chris Lutjen I’m 31 from Garavaglia Architecture. We’ve been involved with the project since 2009. We 32 were originally contacted after the unfortunate demolition, and we were charged with 33 determining whether or not the amount of material that had been salvaged from the 34 building could be reinstalled and reconstructed to restore the Category 2 nature or 35 Category 2 status of the building. 36 37 Now we were involved with the former owner and architect team in one round of 38 planning submittal, comment, and review, and we’ve been involved with the current 39 project team extensively. And I’d like to complement them on their, their work so far. 40 They’ve responded to about three rounds of comments and we would just like to 41 recommend that there is enough material available for the project to meet the Category 2 42 status and to achieve the conditions of approval as laid out by Dennis. 43 44 We will be involved with the next phase and the construction phase through the RFI 45 process. We’ll also, we’ve been contracted to do some site visits. We’ll be there every 46 two weeks to do site visits. We can, we will be able to issue memos on, after every site 47 visit and gather it with a report at the termination. And I’m available to answer any 48 questions. 49 City of Palo Alto Page 9 1 Chair Bernstein: Ok. All right, thank you. I’d like to open up the Board for questions for 2 the Applicant or the Architect, Consulting Architect, or staff. David. 3 4 Board Member Bower: Well I was gonna defer to Beth, but I didn’t see your hand. I guess I 5 have a question for staff really. I see this is now gonna be an entirely office oriented building, 6 and it seems like I think the City has a policy of trying to avoid having first floor, downtown 7 buildings just be offices in an effort to encourage retail. And I know that the only two things we 8 seem to have in Palo Alto now are restaurants and venture capital offices. So I’m wondering 9 where, you know, how that, how that particular issue fits in with this application. 10 11 Mr. Turner: We’re gonna bring Russ Reich, our Senior Planner in the current Planning Division 12 to assist us with that question. Thank you. 13 14 Russ Reich, Senior Planner: Hi and good morning. Thank you Board Member Bower. A few, a 15 while back the City amended the zoning to allow ground floor office in the CD. It used to be 16 that in the GF zone as well as the CD ground floor office was not permitted, but at the time that 17 the economy was going badly and we had a lot of vacancy in the downtown the City amended 18 the GF zone such that if the vacancy rate exceeded a certain point, it used to be that you could 19 put ground floor office and they amended it such that you can no longer do that. So no matter 20 what the vacancy rate is, you can’t put ground floor office in the GF. 21 22 In exchange for doing that the City amended the Ordinance to strike the prohibition of ground 23 floor office in the CD. So all the surrounding CD properties actually could become office on the 24 ground floor. And so this property is beyond the GF limitation and just in the CD and so the 25 zoning certainly does allow ground floor office in this location. 26 27 Board Member Bunnenberg: And just a quick comment on that, this building used to be a 28 babysitting agency when, when I had small children so that we have some precedence here. 29 30 Board Member Bower: Ok, thanks I appreciate your clarifying that. I have a question for Chris 31 in terms of their onsite, what the onsite presence will be. Obviously I think this will be one of 32 the more successful rehabilitation projects in the City of Palo Alto now that it’s had such a 33 horrible start it sounds like this crew is a lot more sensitive to historic issues than the earlier one 34 was. But, are you gonna have somebody on site to, like a full time, or just on irregular basis? 35 36 Mr. Lutjen: We won’t be providing supervision, like a daily supervision. It’ll be more of the 37 typical construction administration process where we do site visits. We will visit the site 38 approximately every two weeks to perform observation and to make sure that the, the project is 39 being built according to design intent. So we will be available for RFI’s if they have, if the 40 project team has any questions they can document their questions to them and we will respond 41 with sketches or you know, provide whatever, you know, whatever responses they need, but yes, 42 we will also be there for completion of framework and maybe other milestones during the 43 reconstruction process. 44 45 Board Member Bower: Yeah I was reading your recommendations about how to reapply siding 46 and trim and note that they, I think it’s on Page 42, you’ve got a, 44, there’s a note that says, 47 “trim and siding shouldn’t be cut” and then in other places “it should be reinstalled exactly as it 48 came off the building.” I’m assuming that means that in these large sections of the building 49 City of Palo Alto Page 10 which remain, sort of intact, that those would go back up. But how do you, how do you provide 1 beveled, at another place it says, “bevel each piece of siding where it meets rather than butt joint 2 it.” How do you do that if you can’t cut the siding? I mean, I found these to be slightly at odds 3 with each other. 4 5 Mr. Lutjen: So that would be one of the challenges of the project team is to return the siding 6 without obvious, obvious marks or vertical separations. So the idea would be to, to stagger the, 7 the cuts if they need to be made. Like to use the original, you know, put the siding up exactly as 8 it was originally, but that, you know, that might happen for 95% of the siding, but it’s, it might, it 9 won’t necessarily, you know, be 100%. But the idea is to provide, you know, no vertical lines as 10 the siding is reinstalled and technically, you know, you could do that with the bevel cut and have 11 the, you know, have it, you know up. 12 13 Board Member Bower: So I’m just reading this and thinking, seeing one direction that says don’t 14 cut anything and another one that says cut them all at bevel. Those seem to conflict. The other 15 thing that I saw was no top nailing. Well that siding was applied with top nailing and of course 16 those of us who remember what that building looked like 10 years ago, before it was painted, 17 you could see all the nails. So, how do you attach, how do you attach bevel siding without top 18 nailing? What’s the, there’s no direction and I’m curious. 19 20 Mr. Lutjen: What they’re going to be able to contact us if they have questions, but the idea is to 21 give, give the contractor enough leeway to do their work with, you know, and provide the 22 technical backup for them. We’re not going to lay out the exact, I mean it’s going to depend on 23 project conditions, so we’re not gonna lay out, you know, all of the rules. It has to depend on 24 how the, how the siding fits back together. 25 26 Board Member Bower: Yeah, but I think they’re in a box. I mean how do you apply siding if 27 you can’t top nail? That’s the way that siding was intended to be installed and that’s the way 28 typically it was. I don’t, I don’t expect you to provide a piece by piece direction, but if you say 29 no top nailing, I’m wondering how that stuff gets back on that building and stays there. 30 31 Mr. Lutjen: Yeah, I don’t recall forbidding top nailing but… 32 33 Board Member Bower: “No exposed face nailing should be allowed.” It’s Page 44 under 34 decorative features, column trim, dental moldings. I’m not trying to pick apart this, this is a 35 really tough project, but I think that these are the guidelines that these people have to follow and 36 if, if those guidelines are so restrictive that they can’t do what they need to do to make this 37 building watertight then I think it might, there needs to be some leeway and I guess I’m 38 expecting staff could figure out a way to get this to happen. I think all of us want the same thing 39 here, we want this building to come back together the way it was supposed to be rebuilt in 2008. 40 41 Mr Lutjen: I think with our preconstruction meeting that that’s something that we could address 42 in a preconstruction meeting. And we could do that with the, the material, you know, present so 43 that we could discuss that more in detail. I understand, no, no, it’s a good question. 44 45 Board Member Bower: I don’t mean to be badgering, but I do think that, that the whole purpose 46 of this very impressive set of documents is to get the people who don’t have the sophistication 47 and the experience in historic buildings who are actually gonna be doing this stuff adequate 48 guidelines and so that’s my concern. Thanks. 49 City of Palo Alto Page 11 1 Mr. Lutjen: Thank you. 2 3 Chair Bernstein: I have a question for Chris too while you’re up here. Thank you Chris. It’s a 4 requirement to keep the Category 2 that any proposed work on this site meets the Secretary of 5 Interior Standards for Rehabilitation and particularly the issue of compatibility and 6 differentiation. Can you explain how this proposed project meets the compatibility and 7 differentiation standards? 8 9 Mr. Lutjen: Yeah, there is a, at the rear of the building there is a, a slight hyphen where the 10 building kind of juts in. And the, the siding, the all the detailing, the selection of the windows, 11 the roofline is meant to be in proportion to the original building but not to override it or, you 12 know, to appear as it was part of the original building. The approved set of documents, and we 13 did a review, a cursory review of the design of the addition, but that, the addition was actually 14 part of the pre-approved, already been approved set. So we didn’t have a lot of leeway in 15 making any kind of judgments or anything like that. In my opinion, in our opinion the new 16 project is a better project for the addition than it was with the restaurant, specifically because of 17 the, or one of the things is because of the reduction of the roofline and the exterior fan curl units 18 and equipment that they didn’t need any more because of the office use. 19 20 Chair Bernstein: So say the, you have a change in siding sizes too, looks like. The mention of 21 the existing siding and the new siding looks like they’re different sizes too. 22 23 Mr. Lutjen: Yeah, just slightly differentiated. 24 25 Chair Bernstein: Great. And then also on the communications of your site visits and 26 coordination with the contractor and the building team, let’s see, are you proposing any 27 documentation of your meetings and memos and site visit notes to either the Historic Planner or 28 Planning Department or HRB? How would we see evidence of those meetings? 29 30 Mr. Lutjen: So we’re going to provide after each site visit we’ll, we will provide a memo listing 31 out what we have observed and at the completion of the process we are going to issue a report 32 that includes all those memos as appendices and an additional finding, or recommendation I 33 guess to the City. 34 35 Chair Bernstein: A possible condition that the HRB may discuss and may request and may vote 36 on is that the communications are visible to the City and we’ll figure out which City department 37 at certain regular intervals as appropriate to the construction and not just getting a report at the 38 end. So, that’ll be something that the HRB and the staff maybe can comment on. 39 40 Mr. Lutjen: Yeah, those will be available to the City through the Planning Department. 41 42 Chair Bernstein: Yeah, ok great. Ok, thank you Chris. Yes, go ahead Michael. 43 44 Board Member Makinen: Yeah thank you very much Chair Bernstein. I had a, just a couple 45 generic questions here. Is there any knowledge of other projects similar to this that were 46 deconstructed and then reconstructed and still maintained historic integrity? The only thing that 47 sort of comes to my mind, and I don’t even know if it was like that was Williamsburg, and I 48 don’t know if that was a complete reconstruction, a fabrication, or if it had original fabric on it. 49 City of Palo Alto Page 12 But do you have any knowledge of other projects that were in this type a state of deconstruction 1 that were put back together and maintained historic integrity? 2 3 Mr. Backlund: Well, Williamsburg is a case of a mixture of scenarios and there were heavy 4 restorations where a lot of material had been lost and then others that were fairly intact and then 5 a number of the larger official or government buildings were entirely reconstructed. But apart 6 from, from Williamsburg, as I mentioned earlier there are standards for deconstructing. We 7 experienced one of them, as I mentioned, with the, the water tower at 345 Lincoln. That was 8 deconstructed actually for the same reason that 564 University was with the difference that the 9 City was notified and we invoked professional standards. That’s when you’re going to insert the 10 steel framing and so there have been buildings, it’s more common in earthquake areas, but 11 otherwise back East there are buildings that have been moved. And so there has to be a some of 12 them have irregular massing and so they have to be cut up. A case that we had was the French 13 Laundry here that was cut up into a number of pieces but once again, the City’s Historic 14 Consultant laid out a deconstruction plan and a put-it-back-together plan that the City approved. 15 16 So yes there have been a number of cases where this has been successfully done. The unique 17 thing about this house is that our Ordinance allowed a reconstruction where the City did not 18 know how the building was taken apart and basically what the contractor did in ’08 was to take it 19 apart in much smaller pieces than state of the art deconstruction plans allow. And not everything 20 was catalogued in such a manner to make it clear where it came from and consequently months 21 and months of work in further inventorying by the Historic Consultant and by the Applicant team 22 to figure out in order to do what they did in those images where things had come from. And 23 eventually you can get it. They called it the jigsaw approach. When we get a big jigsaw puzzle 24 we don’t know where any of those pieces came from but eventually we find it out as we work on 25 the puzzle so we did the same thing here. 26 27 And I think the most directly answer your question Council Member Makinen, is to. Oh, did I 28 say? Sorry. That’s for the future. Board Member Makinen. The images on the wall are just one 29 example. 30 Chair Bernstein: It’s on the record. 31 32 Mr. Backlund: The applicant trying to piece all these, all these items together in a sort of jigsaw 33 puzzle approach and so our job is to try and figure out if this is successful whether there have 34 been precedents of things deconstructed without a state of the art plan and successfully 35 constructed, that I am not aware of. Our Ordinance provision is pretty unique in California in 36 allowing this, but it’s though procedures like they did on the wall has given us assurance that this 37 can be done because we can already see part of it coming together. And so they provided us with 38 that assurance on the recommendation of Garavaglia Architecture. 39 40 Chair Bernstein: Michael. 41 42 Board Member Makinen: Just, just a couple more questions I have. Are you required to have a 43 performance bond on doing these, this project, I’m speaking to the R, the owner, the owner. 44 Performance bond? I think that’s probably one of the problems that we might have had with the 45 previous project that we didn’t have any assurances through a performance bond that the thing 46 was gonna be completed. There’s no recourse. 47 48 City of Palo Alto Page 13 Mr. Turner: I’m not aware of any requirement like that. The City’s not aware of any 1 requirements for a performance bond. 2 3 Board Member Makinen: Do you think it would be a good idea to have such? 4 5 Mr. Turner: My sense is that the work that staff and Garavaglia Architecture and the Applicant 6 have produced over the many months as Dennis went into, I think provide us with the assurance 7 along with the conditions of approval and the procedural steps that are outlined for the 8 reconstruction that if those take place that we will have a successful project. We, perhaps if we 9 did not have the strong relationship that we currently have between the Applicant and the, and 10 the City that we might request that, but I think over the months that there’s been a, have a mutual 11 level of trust that has been developed. 12 13 Board Member Makinen: Or perhaps with the previous project if you had such a performance 14 bond you wouldn’t be in this bind. 15 16 Mr. Turner: Perhaps that would be the case. 17 18 Board Member Makinen: The other, one other question I have is when I think I read the 19 documentation over you were, your arrangement with the City, Garavaglia’s arrangement with 20 the City was up to seven site visits as part of your observation agency agreement. Do you think 21 that’s really adequate? Just seven visits? 22 23 Mr. Lutjen: So I can’t comment on the full schedule, the construction schedule, but that was our 24 estimate, base estimate every two weeks. 25 Board Member Makinen: I just think that’s kind of. 26 27 Mr. Lutjen: Well this is just based on the historic building. We’re not doing construction 28 administration and observation on the addition. It’s, it’s to be clear it is the historic portion or 29 the historic building only. And we do have, we have left room for additional site visits if 30 necessary. 31 32 Board Member Makinen: Ok. Just one final question I guess, and this particular project if the, 33 the classification as a Category 2 building is not maintained the project is a no go? 34 35 Board Member Makinen: So, so that’s, the whole project hinges upon maintaining the Category 36 2 to get the, your bonus development rights. 37 38 Mr. Lutjen: That is, that’s key. Yes. 39 40 Board Member Makinen: Ok. Thank you. 41 42 Chair Bernstein: Any other Board Members? Beth. 43 44 Board Member Bunnenberg: I did have a question which I think probably is more for the 45 Applicant. My understanding was that the restaurant had such high occupancy on the second 46 floor that that weight load was part of what necessitated the steel reinforcements. Is there a 47 difference in the weight load you’re anticipating with this office use versus what the restaurant 48 had? 49 City of Palo Alto Page 14 1 Fred Brave, RSR Capital, LLC: The occupant loading, the occupant loading would be less for the 2 office building. 3 4 Chair Bernstein: Just because we’re recording we’ll need to hear your name please. 5 6 Mr. Brave: Ok, I’m sorry. The occupant loading for the office building would be considerably 7 less than for the restaurant. So there would be less weight. Fred Brave. 8 9 Chair Bernstein: Ok, thank you so much. 10 11 Mr. Brave: I’m sorry. 12 13 Chair Bernstein: Yeah, thank you. I’m sorry, my words interrupted yours. Would you repeat 14 what you now said? 15 16 Mr. Brave: Yes, the occupant loading would be less for the office building. 17 18 Board Member Bunnenberg: And is it, but it’s still needed to put the steel supports in? 19 20 Mr. Brave: I’m not sure, but I think the structural engineer was using, reusing the steel that’s 21 there for the redesign and it was redesigned according to the 2010 building code. 22 23 Board Member Bunnenberg: Thank you. Oh, I’m sorry there’s one more. Do we also include 24 the State Historic Building Code? 25 26 Mr. Brave: Yes. 27 28 Mr. Backlund: It’s a condition of approval on that list. Thank you. 29 30 Chair Bernstein: Ok, Scott. 31 32 Board Member Smithwick: So I just have more of a technical question which I’m going to ask 33 because it may end up affecting what we see. In my experience and I’ve done about 12 of these, 34 I’ve put elevators in old historic houses before and one of the problems that I’ve continually run 35 into is the overrun required on those elevators. Typically somewhere in the neighborhood of 13 36 to 14 feet over the whatever the highest floor level is. And so as I was looking at these plans it 37 wasn’t entirely clear if that had been looked at yet, but if it hasn’t I would recommend looking at 38 that. If it took worse case and went 14 feet above the second floor that gets me up to 26 feet and 39 I think that the peak of the roof is at 30 feet. The advantage is your elevator is located right in 40 the center of the house so you have the most height to work with for that roof, but that needs to 41 be looked at if it hasn’t already. 42 43 Mr. Schlossareck: That was a specific question that Garavaglia did ask and during the process I 44 know that that was paid attention to and so very good point, but Garavaglia had caught that. 45 46 Board Member Kohler: I guess I just have one last couple comments or questions, but by the way 47 this is a pretty amazing set of drawings with all the details of the existing pieces that are to be put 48 together, it’s quite an adventure out there. Just a modest follow up on the to nail or not to nail. 49 City of Palo Alto Page 15 Just the, in Garavaglia it says “no exposed nailing shall be used,” the historic page of the 1 architect that says, “predrill prior to installation to avoid wood damage for the nails.” So there’s, 2 so the architect’s just saying you should predrill and use nails and somehow you’re gonna work 3 it out but I think David was correct, I mean they were all done with face nails so I don’t think it’d 4 be, it’s not terrible to use face nails again because that’s the way it was done originally. What do 5 you think Dennis? 6 Mr. Backlund: The provision for, for predrilling is very helpful. 7 8 Board Member Kohler: No, I’m just the Historic Report says you cannot do any face nailing. So 9 I just, I don’t want to drag on with this but what’s the (interrupted) 10 11 Mr. Backlund: One thing I could point out is that the initial Historic Report was done very early 12 in inventorying the materials. The recommendation there is one that is frequently seen but I 13 think on very great, greatly detailed further study of the materials that it was determined how this 14 house was put together, which would open the door to face nailing as long as it is done in a way 15 that does not damage historic materials. 16 17 Chair Bernstein: Any other comments by Board Members? Or questions? Ok let’s move on to 18 open up to the public comment. Members from the public may speak on this. I have no cards. 19 Any members of the public like to speak to us on this? Seeing none, moving it back to the 20 Board. The Applicant if you’d like to make any closing comments you may do that if you like. 21 22 Mr. Schlossareck: I don’t have a lot to say other than that it actually has been a pleasure to work 23 with both Garavaglia and the Planning Department. The process has been long, but I think it’s 24 yielded a strong end result in terms of the plans and, you know, we plan to continue working as 25 we have going forward and to do a good job here that we’ll all be very happy with. 26 27 Chair Bernstein: Ok, thank you. Right, like to bring it back to the Board for any Motions or 28 recommendations by the Board. Comments from, yes, you may, yeah, recommendations, 29 comments, or Motions. Yes. Sure. 30 31 Board Member Makinen: I guess my comment would be the proposed project in my eyes 32 certainly represents the best possible outcome for a very bad situation. I think that we’re in to 33 otherwise we’re gonna lose the building I’m sure at some point and time. So I’m not generally 34 in favor of doing reconstructions to this extent, but I think in this case this is, in my opinion, the 35 best possible outcome for a bad situation. 36 37 Chair Bernstein: Yes, Dennis. 38 39 Mr. Backlund: Thank you very, very much Board Member Bernstein and I just wanted to make 40 a comment about your, your Motion, the options that you have. You could make a Motion for 41 the entire recommendation, but I will point out that the recommendation is in three parts and you 42 will notice that the three parts are recommending to different agencies. The first part is a 43 recommendation to the City Council, the second is a recommendation to the Director of 44 Planning, and the third one on whether the addition is going to meet the Secretary’s Standards, 45 (we’ve provided the final attachment why staff thinks that it does), that recommendation is to the 46 Architectural Review Board (ARB) and so it may be… 47 48 Chair Bernstein: It’s a Page 1 and 2. 49 City of Palo Alto Page 16 1 Mr. Backlund: Page 2 is the rest of the staff recommendation. Items two and three and because 2 the three parts are recommending to different agencies, you might like to consider making your 3 Motion in three parts and do a ruling, a vote separately on part one, separately on part two, 4 separately on part three, because we will be sending to the Council in an isolated fashion your 5 recommendation on part one, which is the only part that the City Council reviews. 6 7 Chair Bernstein: Ok, thank you that’s a good suggestion. All right, back to the Board. 8 Recommendations, Motions? Ok. Why don’t we start with the, as Mr. Backlund mentioned 9 we’ll take these in three different, if we do make Motions, three different Motions. Let’s start 10 with the first one of finding Part One about the proposed work, I’m sorry that the, I’m reading 11 the staff recommendation here, that meets the Historic Preservation Ordinance and keeping it in 12 Category 2. 13 14 Board Member Kohler: I’ll, I’ll second if that’s a Motion. Is that a Motion? 15 16 MOTION 17 18 Chair Bernstein: Ok, then let me put it in the words of Motions. I move that the Historic 19 Resources Board recommend to the City Council that the proposed reconstruction and restoration 20 project meets the two part Council finding per our Ordinance for rectifying unauthorized 21 deconstruction of a Category 2 and that includes two findings. One, that the proposed work as 22 presented to us today will affect adequate restoration. And finding number two, that the 23 proposed work can be done with a substantial degree of success because of the monitoring. 24 25 SECOND 26 27 Board Member Kohler: I’ll second. 28 29 Chair Bernstein: That needs to be recorded. You didn’t push your button. 30 31 Board Member Kohler: I thought I spoke loud enough, but I second. 32 33 VOTE 34 35 Chair Bernstein: Ok. That’s been moved and seconded, any discussion or Amendments to this 36 Motion? Ok. All those in favor signal by saying aye. (ayes) Ok, thank you that passes 37 unanimously with those present. 38 39 MOTION PASSED (6-0-0-1, Board Member DiCicco absent) 40 41 MOTION 42 43 Chair Bernstein: The second item about the staff recommendation that the HRB recommend to 44 the Director of Planning that the restoration and reconstruction project will maintain the 45 previously approved floor area bonus, meeting the definition of the historic rehabilitation per 46 Ordinance, and by meeting the Secretary of the Interior’s Standards and that the historic integrity 47 at which the original character’s retained will be effected. I make that into a Motion, yes. 48 49 City of Palo Alto Page 17 SECOND 1 2 Board Member Bower: I’ll second that. 3 4 Chair Bernstein: Ok, any discussion? 5 6 Board Member Bower: I’d like to make one statement about this. I think this project deserves to 7 have this bonus and it’s important for the economic viability of the project. I wouldn’t want this 8 action by the Board to be seen by our building community at large as a way of getting around 9 doing real, careful, historic reconstruction. So, I don’t want to set a precedent by allowing this 10 particular bonus to go forward and I just want that on the record because if this is a difficult 11 project, I want to see this building survive, and I think this group of people has done a really 12 tremendous job in putting together plans that will make this a successful project in the end. But I 13 don’t want developers to think, “Oh, we’ll just go deconstruct this building and then we’ll come 14 back because they did it at 564 University.” So, I’m supporting this particular application, but 15 not, not with the intent of making this a policy. 16 17 Chair Bernstein: Thank you David, Beth. 18 19 Board Member Bunnenberg: And as an addition to that, I think we would like to look at again at 20 our policies in terms of what goes on the plans that whether there are any further kind of 21 instructions that are needed. 22 23 Chair Bernstein: Ok. Included in my Motion is the, yeah, I’m sorry. Go ahead. Scott. 24 25 Board Member Smithwick: I just have a technical thing. As the Staff Report is written, there’s 26 two “B’s” in these four parts, so it should be revised “A, B, C, and D.” 27 28 Chair Bernstein: Alright, is staff clear on Scott’s comment? 29 30 Mr. Backlund: Board Member Smithwick, could you repeat that again and be sure we 31 understand? 32 33 Board Member Smithwick: Sure, so under two there is four, four comment for four parts within 34 that it’s as written “A, B, B, and C,” it should be (interrupted) 35 36 Mr. Backlund: Yes, those are the different ways that the project will maintain a (interrupted) 37 38 Board Member Smithwick: Right, but there’s two “B’s” so it should just be (interrupted) 39 40 Mr. Turner: Board Member Smithwick, I think the Municipal Code section there is actually 41 18.18.030 section (interrupted) 42 43 Board Member Smithwick: Gotcha, understood. 44 45 Chair Bernstein: Ok. 46 47 Board Member Kohler: To be or not to be. 48 49 City of Palo Alto Page 18 Board Member Smithwick: Would the Maker of the Motion care to incorporate any of Mr. 1 Bower’s comments on a? 2 3 Chair Bernstein: Let’s see and those comments I recall regarding the clarification of the 4 instructions between nailing/not nailing for example? 5 6 Board Member Smithwick: Not setting a precedent. 7 8 Board Member Bower: This is about, by allowing, by allowing the TDR here, we’re not setting a 9 precedent that would encourage developers to deconstruct buildings and then come back to us 10 later. 11 12 Chair Bernstein: Staff, can that be part of a Motion? 13 14 Mr. Turner: It can be, but I think it perhaps is more appropriate to be as a comment, that’s 15 something that we can certainly follow up with. 16 17 Chair Bernstein: I would agree with that, that that’s a comment outside probably the legal aspects 18 of a Motion, I think, because it’s hard to enforce that. 19 20 Board Member Bower: It’s on the record. It’s just from my position that I wouldn’t support this 21 across the board. 22 23 Chair Bernstein: Right. 24 25 Board Member Bower: I’m comfortable and happy to do it now, because I think it’s appropriate. 26 27 VOTE 28 29 Chair Bernstein: In my Motion I want to make it clear that Attachment A, the 16 conditions of 30 approval are included in the Motion that we’re voting on. I also do see condition of approval 31 number eight, where it says, “There will be an HRB and ARB subcommittee to review a brush 32 out of the approved yellow main wall color prior to the application of the paint.” So when we 33 finish, maybe when we finish these Motions we can assign a subcommittee for color consulting. 34 Ok. All right, any other comments before we vote on this Motion? Seeing none, all those in 35 favor say aye. (aye) Opposed? Passes unanimously by those present. 36 37 MOTION PASSED (6-0-0-1, Board Member DiCicco absent) 38 39 MOTION 40 41 Chair Bernstein: Next, staff recommends the Historic Resources Board recommend to the 42 Architectural Review Board and the Director of Planning that the proposed design revisions to 43 the previously approved rear addition to the historic building comply with Standard 9 of the 44 Secretary Standards for Rehabilitation which requires an addition to historic buildings to be 45 compatible to the historic building and adequately differentiated from the historic building. 46 That’s my Motion. 47 48 SECOND 49 City of Palo Alto Page 19 1 Board Member Bower: Second. 2 3 VOTE 4 5 Chair Bernstein: It’s been seconded. Any comment or discussion on this Motion? Seeing none, 6 please vote. All those signal by voting for say aye. (aye) Opposed? Passes unanimously by 7 those present. 8 9 MOTION PASSED (6-0-0-1, Board Member DiCicco absent) 10 11 Chair Bernstein: Staff do we need to take any other action on this Agenda Item? 12 13 Mr. Turner: None that we are aware of. 14 15 Chair Bernstein: Ok. All right, I think that now concludes then this Agenda Item. Gentlemen 16 thank you so much for your wonderful presentation and we look forward to moving forward. 17 Great, thank you. 18 19 Board Member Makinen: Just one final question here. 20 21 Chair Bernstein: Yes. 22 23 Board Member Makinen: Do we have a schedule for when this is all going to happen, subject to 24 further approval? 25 26 Mr. Turner: The schedule from here is that we are on the City Council agenda for July 16th. It 27 will be a consent item, the Council hopefully will be able to approve as part of their consent 28 calendar. And then from there the building permit review will continue and hopefully get 29 approved shortly. 30 31 Board Member Makinen: The construction phase will last for how long? 32 33 Mr. Turner: The Applicant might be able to discuss 34 35 Mr. Reich: No, the building permit has not yet been submitted we were waiting for a review and 36 approval by the HRB. But they do anticipate submitting the building permit now that they have 37 approval. Obviously that approval, the issuance of the building permit won’t take place until 38 after the Council action. 39 40 Chair Bernstein: Ok. Let’s go one Board Member at a time please. Go ahead. 41 42 Board Member Makinen: Oh, just asking, assuming everything would be approved and you get 43 into construction, how long of a construction period would you estimate? 44 45 Mr. Schlossareck: My understanding is that it’s 10 to 12 months. Is that correct Vadeem? 46 47 Chair Bernstein: Beth, you had a question? 48 49 City of Palo Alto Page 20 Board Member Bunnenberg: Yes, I was wondering about when does it go to the full 1 Architectural Review Board? 2 3 Mr. Reich: Since the project has already been approved by the Architecture Review Board it 4 won’t be actually going back to them. The reconstruction only has to be approved by Council 5 and so it will go to Council after this and that’ll be it. 6 7 8 City of Palo Alto (ID # 3022) City Council Staff Report Report Type: Consent Calendar Meeting Date: 7/23/2012 July 23, 2012 Page 1 of 4 (ID # 3022) Summary Title: 2013 Electricity Capacity Purchase Authorization Title: Adoption of a Resolution to Authorize the City Manager to Purchase Electricity Resource Adequacy Capacity Products for Calendar Year 2013 in an Amount Not to Exceed $2 Million From: City Manager Lead Department: Utilities Recommendation Staff recommends that the City Council adopt the attached resolution authorizing the City Manager or his designee to purchase electricity resource adequacy products from suppliers who meet the City’s credit requirements for wholesale utility commodity contracts in an amount not to exceed $2 million for calendar year 2013. Executive Summary Since 2008 the California Independent System Operator (CAISO) has allocated responsibility to utilities such as the City the responsibility for acquiring sufficient local generation capacity to maintain electric transmission grid reliability. Over the past five years, the City has been able to procure sufficient capacity to meet its allocated responsibility through its existing Electric Master Agreements and purchases from other members of the Northern California Power Agency. However, staff was unable to procure the full capacity needs for 2013 in a recent competitive solicitation from these existing suppliers and additional capacity resources of approximately 25 megawatts (MW) are still needed. The proposed resolution authorizes the City Manager or his designee to procure capacity from additional suppliers to increase staff’s ability to competitively procure capacity while managing costs and risk. Background July 23, 2012 Page 2 of 4 (ID # 3022) In July 2002, the Council approved the Metered Subsystem (MSS) Agreement with the CAISO, which permits the City to receive electric transmission and related services. The Council also authorized a number of ancillary agreements with Pacific Gas and Electric Company (PG&E) and the Northern California Power Agency (NCPA) to facilitate various transmission grid-related services (CMR: 298:02). The MSS Agreement requires the City and other NCPA member signatories to abide by applicable CAISO tariffs that may be updated and subsequently approved by the Federal Energy Regulatory Commission (FERC) from time to time. Under the terms of the current CAISO tariff, the responsibility for obtaining sufficient local generation capacity to maintain transmission grid reliability belongs with Load Serving Entities such as the City. In order to insure the reliability of the transmission grid, since 2008 the CAISO tariff has required that the City procure capacity for Local Resource Adequacy (LRA) from generators located within CAISO-designated “load pockets” (such as the San Francisco Bay Area, Stockton, or the Greater Fresno area). To comply with the CAISO tariff requirement, in 2008 Council approved the Electric Utility Resource Adequacy Program in Resolution 8870 (Attachment C) (CMR: 392:08). Discussion Since 2008 the City has been required to own or contract for Local Resource Adequacy capacity every year in an amount equivalent to about 50% of its summer peak load from generation resources located in one of seven CAISO- designated northern California load pockets or risk being allocated the “backstop” procurement costs incurred by the CAISO to make up a shortfall of capacity procured by LSEs. For calendar year (CY) 2013, the City’s Local Resource Adequacy capacity procurement requirement is expected to be approximately 85 MW. Of this total, approximately 18 MW is satisfied through the City’s existing resources. The cost of procuring sufficient Local Resource Adequacy capacity is estimated to be $2.4 million for CY 2013, an amount that was incorporated in the FY 2013 budget and the FY 2014 budget estimate. In order to avoid the high CAISO backstop procurement costs, and so as not to cause the CAISO to find either the City or the NCPA MSS to be non-compliant, the City can currently meet its requirements by: a) purchasing from NCPA members that have surplus Local Resource Adequacy capacity, under the authority granted July 23, 2012 Page 3 of 4 (ID # 3022) under Resolution 8763 (CMR: 404:07); and b) purchasing from the City’s existing suppliers, with which the City has executed Electric Master Agreements (EMAs), under the authority granted in Ordinance 4953 (CMR: 224:07). In the last five years in which the City has been required to procure Local Resource Adequacy capacity, sufficient resources were procured from other NCPA members or from the City’s existing suppliers. However, in a recent competitive solicitation to procure Local Resource Adequacy capacity for CY 2013, staff was only able to purchase 20 MW from one supplier with whom the City has an executed Electric Master Agreement. The City expects to be able to procure approximately 25 MW of additional Local Resource Adequacy capacity from NCPA members through an NCPA capacity transfer process that will occur in August. However, this still leaves the City short of its CY 2013 Local Resource Adequacy capacity procurement requirement by about 25 MW, and the City’s pre-approved suppliers are not able to sell any additional Local Resource Adequacy capacity to the City. To increase staff’s ability to competitively procure Local Resource Adequacy capacity while managing costs and risk in order to meet the City’s obligations under the MSS Agreement and the City’s Electric Utility Resource Adequacy Program, staff recommends Council approve the attached resolution to authorize the City Manager or his designee to transact Local Resource Adequacy capacity or related products from suppliers who meet the City’s credit requirements for wholesale utility commodity contracts (Municipal Code Section 2.30.340). Under the proposed resolution, the Local Resource Adequacy capacity purchase is limited to the following parameters: The amount of the purchase will not exceed the amount needed to meet the CAISO’s Local Resource Adequacy capacity obligation to the City for CY 2013; and The total purchase cost will not exceed $2 million. The form of agreement will be jointly determined by the selected Local Resource Adequacy capacity seller and the City, and will be approved as to form by the City Attorney. The agreement will be substantially similar in form to the Draft Agreement (Attachment B), which the City has previously used to purchase Local Resource Adequacy capacity bilaterally from other NCPA members. July 23, 2012 Page 4 of 4 (ID # 3022) Resource Impact Local Resource Adequacy capacity purchases are expected to cost the City a total of approximately $2.4 million in CY 2013. This cost estimate includes the expected cost of the purchases to be made under this authorization request (approximately $1 million). These cost estimates are included in the Electric Fund’s FY 2013 budget and were incorporated into the five-year Electric Fund financial forecast and retail rate projections. Policy Implications This recommendation is consistent with the Council-approved Utilities Strategic Plan to ensure a high level of system reliability in a cost-effective manner. Environmental Review Adopting a resolution authorizing the City Manager to purchase electricity resource adequacy products does not constitute a project for the purposes of the California Environmental Quality Act. Attachments:  Attachment A: Draft Resolution Authorizing the City Manager to Purchase Electricity Capacity Products (PDF)  Attachment B: Draft LRA Capacity Transaction Agreement (PDF)  Attachment C: Resolution No. 8870 – Electric Utility Resource Adequacy Program (PDF) Prepared By: James Stack, Resource Planner Department Head: Valerie Fong, Director City Manager Approval: ____________________________________ James Keene, City Manager *NOT YET APPROVED* 1 120716 dm 00710059 Resolution No. _____ Resolution of the Council of the City of Palo Alto Approving the Purchase of Local Resource Adequacy Electricity Capacity Products from Suppliers Meeting the City’s Creditworthiness Requirements for Wholesale Utility Commodity Contracts in an Amount Not to Exceed $2,000,000 for Calendar Year 2013 A. The City of Palo Alto (the “City”) receives electric transmission services under the terms of the 2002 Metered Sub-System (“MSS”) Agreement between the Northern California Power Agency (“NCPA”) and the California Independent System Operator (“CAISO”). B. The MSS Agreement requires the City and other NCPA members to abide by the applicable CAISO Tariff (the “Tariff”) that may be updated and subsequently approved by the Federal Energy Regulatory Commission (“FERC”) from time to time. C. The Tariff includes the obligation of the City to purchase Local Resource Adequacy (“LRA”) electricity capacity products. D. To comply with its obligation to procure LRA capacity under the Tariff the City has established the Electric Utility Resource Adequacy Program (Resolution No. 8870). E. The City obtains some LRA electricity capacity from its existing resources, but needs to purchase additional LRA electricity capacity products in order to satisfy its procurement obligation under the Tariff. F. To competitively procure LRA electricity capacity products, the City has developed and adopted the contracting mechanism to transact with several private sector suppliers and with NCPA members, but it expects to need the contracting authority to transact with additional suppliers in order to satisfy its LRA capacity procurement obligation under the Tariff. NOW, THEREFORE, the Council of the City of Palo Alto does hereby resolve, as follows: SECTION 1. The Council hereby approves the negotiation of, and authorizes the City Manager or his designee, the Director of Utilities, on behalf of the City to sign contracts relating to, one or more local resource adequacy electricity capacity product transactions with suppliers who meet the City’s creditworthiness requirements for wholesale utility commodity contracts established by Palo Alto Municipal Code Section 2.30.340. These transactions shall meet the City’s LRA obligation for calendar year 2013 and their total cost shall not exceed two million dollars ($2,000,000). // // *NOT YET APPROVED* 2 120716 dm 00710059 SECTION 2. The Council finds that the adoption of this resolution does not meet the definition of a project under the California Environmental Quality Act (CEQA) pursuant to California Public Resources Code Section 21065, and therefore, no environment assessment is required. INTRODUCED AND PASSED: AYES: NOES: ABSENTIONS: ABSENT: ATTEST: APPROVED: ____________________________ _____________________________ City Clerk Mayor APPROVED AS TO FORM: _____________________________ _____________________________ Senior Asst. City Attorney City Manager _____________________________ Director of Utilities _____________________________ Director of Administrative Services 1 120716 dm 00710061 LOCAL RESOURCE ADEQUACY CAPACITY TRANSACTION AGREEMENT BETWEEN ___________________ AND THE CITY OF PALO ALTO This Local Resource Adequacy Capacity Transaction Agreement (this “Agreement”), dated as of __________, 20__ (the “Effective Date”), is entered into by and between XYZ Corporation, a California corporation, [street address], [city], California [zip] (“Seller”), and the City of Palo Alto, a California chartered municipal corporation, acting by its Department of Utilities (“CPAU”), 250 Hamilton Avenue, Palo Alto, California 94301 (“Buyer”) (individually, a “Party” or collectively, the “Parties”). RECITALS: A. Buyer, acting by CPAU, desires to transact in local resource adequacy capacity (“Local RA Capacity”) in order to enable the City of Palo Alto, California (the “City”) to competitively meet regulatory requirements imposed by the California Independent Systems Operator Corporation (the “CAISO”). B. Seller has ownership rights to surplus capacity from generating units, identified by the CAISO as units that are located in northern California load pockets, which units are listed in the CAISO document entitled “Final (Update) NQC Local Area Data for Compliance Year 2012 – Oct 28, 2011”; specifically, they are: ____________________. C. Seller desires to sell to Buyer, and Buyer desires to purchase from Seller, the above-mentioned Local RA Capacity (the “Product”) for calendar year 2013, provided that the CAISO recognizes the transfer of the Product’s resource adequacy counting rights to Buyer, without the imposition on Seller of any further obligations beyond those currently required of Seller. For example, the transfer by Seller is not expected to result in any obligation to submit supply plans or make the units available under must-offer. AGREEMENT IN CONSIDERATION OF Recitals A, B and C and the following covenants, terms and conditions, the Parties agree: Section 1. Description of Product 1.1 The Product, the subject matter of this Agreement, is Local RA Capacity that qualifies to meet “Local Capacity Requirements” (“LCR”), as that term is defined and otherwise identified by the CAISO in its document entitled “2013 LOCAL CAPACITY TECHNICAL ANALYSIS - FINAL REPORT AND STUDY RESULTS, APRIL 30, 2012.” Seller shall provide the Product during calendar year 2013 only. The Parties acknowledge and agree that (a) Seller is not obligated to provide to Buyer any energy, ancillary services or any other services other than the service consisting of conveying to Buyer the contract quantity of ____MW of Local RA Capacity attributes for use by Buyer in regard to its obligation to make CAISO 2 120716 dm 00710061 Resource Adequacy showings, and (b) Buyer shall not have any right, title or interest to make a call on or bid Seller’s generation. 1.2 The ____ MW Product will be made available from _____________; at a price of _____________ during calendar year 2013. 1.3 Seller agrees that the contract quantity of ____ MW of Product sold under this Agreement shall be unencumbered by any other sale, any assignment, or any rights conferred to any party other than Buyer. 1.4 Buyer shall have the right to declare to the CAISO the Local RA Capacity rights secured through this transaction. Seller shall be obligated to inform the CAISO, through its Scheduling Coordinator, the Northern California Power Agency (“NCPA”), of the transfer of these rights to Buyer. Section 2. Payment & Billing Terms 2.1 On or about the tenth (10th) day of each month, Seller shall provide an invoice to Buyer in the amount applicable to that prior month’s contract quantity of Product sold under this Agreement. 2.2 The terms of payment shall be net ten (10) days after the date Buyer receives a properly prepared and accurate invoice sent to Buyer’s address, which shall include at a minimum: (a) Seller’s complete name and address where payment is to be remitted; (b) Buyer’s complete name and address where bill is to be sent; (c) Price and billing units consistent with this Agreement; (d) Quantity; (e) Invoice date; (f) Total monetary amount; and (g) Terms of payment, including any applicable discount calculations. 2.3 Payment may be made by check, draft, warrant or wire transfer. Payment by check shall be considered made when received by the other Party. Buyer agrees to send its payment to: [address] Wire Transfer: [bank information] 2.4 If Buyer fails to remit the full amount then due and payable, then interest on the unpaid portion shall accrue from the due date until the date of payment at a rate equal to the then effective prime rate reported daily in the Wall Street Journal for the period beginning on the day 3 120716 dm 00710061 after the due date and ending on the day of payment, provided that such interest rate shall not exceed the amount permitted by law. Section 3. Assignment of Replacement Capacity, Backstop Assignment and Performance Penalties or Payments 3.1 In the event the Product does not meet, conform to or otherwise satisfy the CAISO’s Local RA Capacity specifications during a specified month and the Product’s failure to meet the CAISO’s specifications would require or cause Buyer to purchase replacement capacity or incur a direct assignment of the CAISO’s backstop assignment costs (as specified in the prevailing CAISO Tariff), Buyer’s replacement costs or the CAISO’s backstop assignment cost due to the Product’s failure to qualify for the term of the replacement will be assumed by, paid for or be otherwise the responsibility of Seller. 3.2 If the CAISO determines that the Product has failed to perform in accordance with the provisions of the CAISO Tariff, resulting in non-availability charges being assessed, or if the CAISO determines that the Product has exceeded the performance standards in accordance with the provisions of the CAISO Tariff, resulting in the credit of availability incentive payments, such charges and/or incentive payments will be allocated to and paid by or credited to Seller. 3.3 Notwithstanding 3.1 and 3.2, in the event the CAISO does not recognize one or more generating units of the Product as capable of providing Local RA Capacity as reflected in the CAISO’s final Net Qualifying Capacity report for 2013, then all rights and obligations of the Parties arising from their performances under this Agreement shall be void with respect to those particular generating units deemed by the CAISO as not capable of providing Local RA Capacity. Section 4. Events of Default; Remedies 4.1 An “Event of Default” shall mean, with respect to a Party (the “Defaulting Party”), the occurrence of the failure to make, when due, any payment required pursuant to this Agreement if such failure is not remedied within five (5) business days after written notice of such failure is given by the other Party. 4.2 If an Event of Default shall have occurred and be continuing, the other Party (the “Non-Defaulting Party”) may give notice of termination, specifying the effective date of termination if there is a failure to cure the Event of Default within a reasonable time, which time will be not less than thirty (30) days, and thereafter may terminate the Agreement and seek damages arising out of the act or failure to act by the Defaulting Party. Section 5. Representatives of the Parties 5.1 Each Party will designate, in writing, an employee who shall be the Party’s representative in all matters relating, directly and indirectly, to this Agreement. For the purposes hereof, the following individuals are designated the representatives of the Parties: 4 120716 dm 00710061 Buyer: Director of Utilities 250 Hamilton Avenue Palo Alto, CA 94301 Phone: (650) 329-2214 Fax: (650) 326-1507 E-mail: valerie.fong@cityofpaloalto.org Seller: Name: Address: Phone: Fax: Email: Section 6. Indemnity 6.1 Each Party shall indemnify, defend and hold harmless the other Party, its officials, directors, officers, employees, and agents, and each and every one of them, from and against all actions (including, but not limited to, those in tort or contract), penalties, damages, costs, liability, claims, losses and expenses of every type and description to which any or all of them may be subjected by reason of, or resulting from, the performance of this Agreement. The provisions set forth in this Section 6 shall survive the termination of this Agreement. Section 7. Dispute Resolution 7.1 Unless otherwise mutually agreed to by the Parties, in writing, any controversy between the Parties regarding the interpretation of this Agreement, and any claim of a Party against the other Party arising out of this Agreement or its breach, shall be submitted to nonbinding mediation within thirty (30) days after the service of the written request of one Party on the other Party; provided, however, the Parties shall attempt to resolve outstanding issues informally at the senior executive level of each organization for at least thirty (30) days after the service of the written request before they will seek the assistance of a professional mediator. 7.2 The Parties shall agree on one mediator. The mediation meeting shall not exceed one (1) day, unless the Parties otherwise agree, in writing, to a different number of days. Mediation under this section is a condition precedent to the filing of an action at law or in equity. In the event of litigation related to this Agreement, the Parties shall each pay their own attorney’s fees, expert witness costs and cost of suit. Section 8. Miscellaneous 8.1 The Term of this Agreement will commence on January 1, 2013, and will expire on December 31, 2013. The Agreement may terminate sooner in accordance with provisions of Section 4. 8.2 Each Party represents and warrants that it is authorized to execute this Agreement, it has the full right, power and lawful authority to undertake all obligations as provided in this 5 120716 dm 00710061 Agreement, and the execution, performance and delivery of this Agreement has been fully authorized by all requisite actions on its part. 8.3 The laws of the State of California shall govern the interpretation of and the resolution of disputes under this Agreement. 8.4 This Agreement, including any exhibits, contains the entire agreement between the Parties and supersedes all oral and written understandings and agreements between the Parties existing prior to the execution of this Agreement. This Agreement shall not be altered, amended or modified except when the modification is in writing and signed by both Parties. 8.5 If any portion of this Agreement, or the application thereof to any person or circumstance, shall be determined by a court having jurisdiction over the Parties to be invalid or unenforceable to any extent, the remainder of this Agreement shall not be affected thereby and shall be enforced to the greatest extent permitted by law. 8.6 The Parties agree that the normal rules of construction regarding the drafting of this Agreement shall not apply; each Party represents that it has been represented by independent counsel. IN WITNESS WHEREOF, the Parties by their duly authorized representatives have executed this Agreement in counterparts as of the Effective Date. CITY OF PALO ALTO XYZ CORPORATION ___________________________ ______________________________ VALERIE O. FONG JANE O. DOE Director of Utilities Vice-President APPROVED AS TO FORM: APPROVED AS TO FORM: ___________________________ ______________________________ GRANT KOLLING HARLEY OATES Senior Assistant City Attorney General Counsel City of Palo Alto (ID # 2927) City Council Staff Report Report Type: Consent Calendar Meeting Date: 7/23/2012 July 23, 2012 Page 1 of 8 (ID # 2927) Summary Title: Mitchell Park Construction Contract Monthly Report Title: Submittal of Mitchell Park Library and Community Center Bi-Monthly Construction Contract Report From:City Manager Lead Department: Public Works Recommendation Staff recommends that Council: 1)Accept this update on the Mitchell Park Library and Community Center (MPL&CC) construction project; and 2)Direct staff to continue to submit bi-monthly reports to Council and to take related actions which Council may direct. Executive Summary The MPL&CC construction is approximately 74%complete (based on expenditures)and it is anticipated that the three-building complex will be open to the public in the Spring of 2013. Two major milestones (“dry-in” and “start of raised flooring”) have been accomplished since the last bi-monthly Report. Another major milestone (“start of ceiling”) is scheduled to occur on July 25,2012 and will be addressed in the next bi-monthly Report, as will be the “permanent power” milestone scheduled for August 9, 2012. Costs have increased above the bid amount partially due to building complexities and partially due to the performance of the City’s contractors. To date, a total increase (Construction Contract Change Orders)of $2,184,726 has been approved by the City, or approximately 9%above the base construction contract amount. The bid amount was approximately 24% below the City Engineer’s estimate and Council has authorized a maximum increase of 20% above the bid amount in July 23, 2012 Page 2 of 8 (ID # 2927) Change Orders.Thus,the project remains below budget, despite the unforeseen costs. Background At 56,000 square feet, MPL&CC is the City's largest construction project in four decades. Inside the state-of-the-art Library building,teens, children, and those just wanting a quiet space, will all have their own dedicated areas. The two- building Community Center complex will contain an expansive community room, kitchen, teen center, cafe,computer room and game room. The complex will be the City's model for an eco-friendly facility with extensive green roofs, solar water heating, night sky water cooling, photovoltaic panels, stormwater infiltration, and natural daylight utilization; all wired with a state-of-the-art data feedback and control system. On September 12, 2011,Council authorized an increase in change order authority and a ceiling for the MPL&CC construction contract from 10% to 20% to cover unanticipated construction costs. Council also directed staff to provide Council with a Monthly Report (subsequently modified to bi-monthly)on Change Orders with Flintco, the general contractor.Council also requested the City Attorney to provide additional confidential briefings regarding potential claims against other responsible parties.Additionally, Council also directed Staff to report on project milestones in the Bi-monthly Reports. Discussion Construction Progress On June 4, 2012, Council requested information on construction progress and set- backs since the last report,and milestones that staff expects will be reached by the next report. On June 15, 2012 a major milestone was achieved: “dry-in”of the 3-building complex. Dry-in means that the buildings are fully protected from the elements and that work can proceed on the interior that had to wait for this key accomplishment such as sheetrock installation which was awaiting dry-in. The second major milestone achieved since the last Bi-monthly Report was “start of raised flooring”. The raised flooring is a major feature of Building A (the Library) and is in the “critical path” for completion of other tasks. Piping and much of the building’s heating system rests on the concrete subfloor and is then covered by July 23, 2012 Page 3 of 8 (ID # 2927) the raised floor two feet higher.The flooring subcontractor started this installation on June 25,2012. Despite these very important accomplishments, not all has gone smoothly. Not all of the windows arrived on schedule and plastic sheeting had to be used to achieve dry-in for certain areas. Certain large sliding glass doors did not match the contract specifications and had to be replaced. Other components were poorly installed and had to be re-done.An incorrect mix of base stucco was used in certain areas, and cracking has occurred. Many corrections to mechanical, electrical and plumbing work beneath the raised flooring were not completed before 6/25/12, and floor panels are being temporarily removed to complete this work and conduct inspections. All of these problems were detected by the City’s Construction Manager (Turner) and the Contractor is being required to correct at no cost to the City. Sub-standard work will not be accepted. However,these corrections cause delays in the work of the next subcontractor and some could cause a delay in a critical path item and further delay the project. City staff is proactively working with the General Contractor and City consultants to avoid delay while not compromising quality. Looking ahead to the next Bi-monthly Report, the key milestone will be to “begin ceiling installation on July 25, 2012.This is a critical milestone because it means that all of the mechanical, electrical and plumbing equipment at the top of the 3- building complex will be installed, inspected, corrected, and re-inspected to ensure that it has passed its inspections.It will follow “start sheetrock”and “start raised flooring”, meaning that essentially all of the rough mechanical,electrical, and plumbing will now be covered up. Staff will report on this phase in the next Bi-monthly Report.Staff will also report on the August 9, 2012 “permanent power” milestone. Having permanent power is critical because it will allow operation of mechanical systems required for the next key steps. Approved Construction Contract Change Orders To date, 17 change orders have been approved for a total amount of $2,184,726. This amount constitutes approximately 9%of the base construction contract amount. Since the last Bi-monthly Report, there have been three additional Change Orders issued. Council has authorized change orders up to 20% of the base contract amount;leaving about 11% remaining. A breakdown of the change orders and the key components of each are contained in Table 1 listed below with July 23, 2012 Page 4 of 8 (ID # 2927) a brief description of each. Please recognize that change orders can include reductions and credits as well as new costs. You will see this, for example, reflected in Change Order #5 in Table 1 below. The shaded change orders have been issued since the last Bi-monthly report. Table 1 Change Order Amount Change Order Summary 1 $41,725 Eight extra work items including the pruning of trees, clean-up of the old building, and removing conduit found during site clearing and grading. 2 $33,102 Four extra work items including the rerouting of a storm drain around tree roots and the addition of a new manhole that the drawings showed being present but wasn’t. 3 $215,501 10 extra work items including an adjustment needed due to tree root interference, an upgrade in wall insulation capability, and design coordination needed for steel installation. 4 $242,754 11 extra work items including the installation of dowels at additional locations, the installation of thicker glass railings to increase stability, increased gas transmission line coordination, and extra concrete water protection. 5 $4,436 24 extra work items including an extra light fixture cost, fire safety drawing coordination, and a variety of additional required supplies totaling $70,536 minus credit given for three of the 24 work items including spare fixtures no longer required and reimbursed City of Palo Alto dump fees totaling $66,100. 6 $25,123 Seven extra work items including additional gas main protection, curb strengthening, and deck support for the Building A green roof. July 23, 2012 Page 5 of 8 (ID # 2927) 7 $74,304 19 extra work items including HVAC driven floor adjustments, electrical system adjustments, data cable rerouting, and a new load break cabinet totaling $109,965 minus credit given for two of the 19 work items including stones for the Arch provided by the artist and value engineering totaling $35,661. 8 $385,251 10 extra work items including additional fill, perforated metal panel ceiling work, various waterproofing, and conduit. 9 $195,706 18 extra work items including multiple curb installations, a basketball court slab, and an art sculpture foundation. 10 $78,514 18 extra work items including a Flintco field staff supplement, waterproofing, plumbing and electrical system alterations, and tree protection measures totaling $79,226 minus credit given for one of the 18 work items identified as plumbing fixture changes totaling $712. 11 $224,662 14 extra work items including beam strengthening, interior & exterior roof tank pipe supports, electric vehicle chargers, load break cabinet bollards, and additional steel. 12 $20,347 Seven extra work items including A/V work, electrical changes, and a roof access ladder. 13 $80,721 13 extra work items including metal stud framing, light fixtures, and miscellaneous electrical work. 14 $54,028 Five extra work items including a thickened roof edge, equipment curbs, a Building A ramp, signage support, and a book drop. 15 $176,586 12 extra work items including additional lighting, electrical work, soil for silva cells & planting areas, and HVAC work. 16 $53,256 Four extra work items including traffic signal modifications, construction recovery costs, and a tube steel base plate modification. July 23, 2012 Page 6 of 8 (ID # 2927) 17 $278,710 Five extra work items including tube steel and supplemental exterior wall steel revisions. TOTAL $2,184,726 TOTAL CO’s 1-17 ***For further information about each of the change orders see the attached corresponding Contract Change Order Scopes of Work (Attachment A). Change order requests submitted by the contractor are typically bundled together and summarized in one single change order. On September 12, 2011,Council further directed staff to submit any change order request which exceeds $85,000 to Council for approval. Staff is interpreting this to mean an individual change order line item more than $85,000. (You may note over the course of a period of time a number of on-site decisions are made, in order to not slow the project down, which when complied later can add up to more than $85,000). (Bundled Change Order 11, for example, totals $224,662, but includes a series of change orders, none of which exceeds $85,000).Council has approved one Change Order to date (Change Order # 17)which contained line items exceeding & 85,000). Related Council Directives for the Bimonthly Report Council further directed that staff report to Council on oversight activities. Therefore, attached is the most recent Library Bond Oversight Committee agenda (Attachment B)and Library Bond Oversight Committee minutes (Attachment C). On October 17, 2011, Council requested information on two other related topics and these are addressed below. 1)Expenditures for New Consultants The City Attorney’s Office has hired the following consultants to assist with the review of construction costs requested by Council. The table below shows the amount encumbered and the amount spent to date. In September, the City Attorney’s office expects to seek Council authority to increase the legal counsel budget to gear up for a mid-project dispute resolution process. Contract Amount Amount Expended ZFA Structural Engineers $25,000 $19,581 Legal Counsel (Jarvis Fay)$75,000 $58,362 Reidinger Consulting (Scheduling) $85,000 $72,327 July 23, 2012 Page 7 of 8 (ID # 2927) Legal Counsel (Otis & Iriki) $85,000 $0 2)Outstanding Change Orders Proposed by the Construction Contractor (Flintco) In addition to knowing the amount of the Change Orders approved to date by the City (above), Council members asked the value of the outstanding change orders proposed by Flintco but not yet approved or rejected. This information is contained in Attachment D. The first graph on Attachment D shows both Potential Change Orders (PCOs) (which is an internal list compiled by the City’s construction manager of certain work items that could eventually result in extra work claims)and actual Change Order Requests (CORs),a subset of the PCOs, which have been submitted by Flintco to date. All CORs were temporarily retracted by Flintco with the stated intention of modifying them. The City has informed Flintco that its retraction may jeopardize the ability of the City to act on these CORs. Due to the failure of Flintco to meet its self-imposed deadlines for resubmittal of the CORs, the City has resumed issuance of Unilateral Change Orders, in order to meet its contract obligations to pay Flintco for Extra Work.Change Orders 15, 16 and 17 have been issued since the last Bi-monthly Report and since Flintco failed to meet its own resubmittal deadlines. The latest Bi-monthly Report concerning all Library Projects (“Palo Alto Library Projects”) is included as Attachment E. In this update staff has also included a Mitchell Park Library Cost Comparison Table (Attachment F) that shows the construction cost of this project in comparison to other recent projects the City has done. Additionally, the Mitchell Park Library Cost Comparison Table shows the contingencies approved and used for each of those projects to help put the 20% contingency fund approved for this project in context relative to what has been approved in the past. Resource Impact There are no resource impacts associated with providing the bi-monthly reports to Council. The approved change orders are within the Capital Improvement Program Project (CIP)Budget PE-09006 for the MPL&CC project. July 23, 2012 Page 8 of 8 (ID # 2927) Policy Implications There are no policy implications in providing the monthly reports to Council. Environmental Review Providing monthly reports on this topic to Council does not constitute a project under the California Environmental Quality Act (CEQA). Attachments: ·A -MPL COs # 1-17 (PDF) ·B -LBOC Agenda_7-24-2012 (PDF) ·C -Final LBOC Minutes_1-24-2012 (PDF) ·D -MPL Financial Charts (PDF) ·E -PAL Monthly Report -May and June 2012 (PDF) ·F -MPL Cost Comparision Table_4-2012 (PDF) Prepared By:Richard Hackmann, Department Head:J. Michael Sartor, Director City Manager Approval: ____________________________________ James Keene, City Manager S:/pwd/eng/kb projects/cips/library/meetings/bond Agenda Library Bond Oversight Committee Quarterly Meeting July 24, 2012 7th floor conference room 4:00 p.m. – 5:30 p.m. Committee Members: James Schmidt (Chair), Sandra Hirsh (Vice-Chair), John Melton, Dena Mossar, Alice Smith Staff: (Public Works) Brad Eggleston, Phil Bobel, Debra Jacobs, (Library) Monique leConge; (Administrative Services) Joe Saccio, Tarun Narayan, (Auditor) Jim Pelletier, (Attorney) Melissa Tronquet Others: (Turner Construction Management) Greg Smith ROLL CALL ORAL COMMUNICATIONS APPROVAL OF MINUTES – April 24, 2012 AGENDA REVIEW & REVISIONS UNFINISHED BUSINESS 1. DISCUSSION – Construction Progress (Greg Smith) a. Mitchell Park Library & Community Center b. Temporary Main Library 2. DISCUSSION – Design Progress (Phil Bobel) a. Main Library NEW BUSINESS 3. DISCUSSION – Update on reconciliation of Main Library costs (Phil Bobel) 4. DISCUSSION -- Draft Financial Report Summary from Administrative Services (Tarun Narayan) a. Expenditures to date – summary spreadsheet 5. ACTION – Approval of Quarterly Report to Finance Committee S:/pwd/eng/kb projects/cips/library/meetings/bond 6. Next Steps a. Next meeting: October 23, 2012 S:/pwd/eng/kb projects/cips/library/meetings/bond Minutes Library Bond Oversight Committee meeting Quarterly Meeting January 24, 2012 7th floor conference room 4:00 p.m. – 5:30 p.m. Committee Members: Dena Mossar, James Schmidt (Chair), Alice Smith, Sandra Hirsh (Vice-Chair), John Melton Staff: (Public Works) Phil Bobel, Karen Bengard, (Library) Cornelia Van Aken; (Administrative Services) Joe Saccio, Tarun Narayan, (Auditor) Jim Pelletier, Ian Hagerman (Attorney) Melissa Tronquet Others: (Turner Construction Management) Greg Smith ROLL CALL 4:00 Quorum Absent: Mossar ORAL COMMUNICATIONS None APPROVAL OF MINUTES – October 25, 2011 Unanimous AGENDA REVIEW & REVISIONS No Changes UNFINISHED BUSINESS 1. DISCUSSION – Construction Progress (Greg Smith) a. Mitchell Park Library & Community Center Greg distributed copies of the Nov/Dec “Palo Alto Library Projects Progress Report”. Progress was slow if you viewed the outside of the building but there is also significant work that has been done on the interior. Contractor’s estimated completion is Dec 2012. It will take library staff 2-3 months after completion to move in books and equipment and test procedures. b. Temporary Main Library Temp library will be in auditorium of Art Center, estimated completion in August 2012. Will not be opened (except to Art Center uses) until Main Library is ready to close. Main Library will not close for construction until Mitchell Library is ready for use. S:/pwd/eng/kb projects/cips/library/meetings/bond 2. DISCUSSION – Design Progress (Karen Bengard) a. Main Library Council meeting on integration of Main/Art Center has been moved to March 5th. Main point of controversy is the driveway ‘connector’ piece that will impact some of the garden spots. Construction on the Main Library cannot start until the new Mitchell Library is complete and the staff from Main moved into Mitchell. Assuming Mitchell is completed in December 2012, construction on Main could start in Feb/March 2013. Construction duration on Main is 1.5 years. NEW BUSINESS 3. DISCUSSION – Outside Auditor’s Report (Ian Hagerman) Auditor distributed copies of report from “outside auditor”, MGO CPA firm. Outside auditor’s report was provided; it had been approved by the Finance Committee by 3- 1. No significant issues found; minor issue of $400 in spending that was mis- classified as bondable and the use of financial advisors whose contracts has expired. Auditor will request policy enhancements and clarifications. Auditor’s workplan is on website. 4. DISCUSSION – Timing of Main Library bond issuance There was a discussion of the timing of the Main Library bond. Tarun and Joe felt that they would need a few months prior to issuance to get a final construction cost estimate. Karen Bengard felt that it might be beneficial to ask for the remaining funds up to the $76 million bond limit. No decision needed to be made at this point, so discussion will continue as more up-to-date cost estimates for Main and Mitchell are known. 5. DISCUSSION -- Draft Financial Report Summary from Administrative Services (Tarun Narayan) a. Expenditures to date – summary spreadsheet Spreadsheet distributed. Discrepancy (of about $419K) with Greg Smith/Turner’s worksheet was because Turner’s reflects more up-to-date information. Tarun was requested to remove schedule information from the spreadsheet as it was outdated and is shown on other locations such as the “Palo Alto Library Projects, Monthly Progress Report” prepared by Turner. 6. ACTION – Approval of Quarterly Report to Finance Committee Jim was not aware if LBOC item has been agendized or whether he needs to appear in person to present findings. It was recalled that the Finance Committee had requested an in-person appearance by the LBOC Chair. Karen will investigate requirements and ask Debra Jacobs to draft cover letter for the report. 7. DISCUSSION– Mitchell Park Library & Community Center contingency issue Phil Bobel discussed (in general) ongoing legal issues related to the MPLCC. He attends closed session to brief Council on proposed Change Order costs. It was explained that the contingency amount was increased from the original 10 percent to the current 20 percent, and that the project is within budget. S:/pwd/eng/kb projects/cips/library/meetings/bond 8. Next Steps a. Next meeting: April 24, 2012 $1 $2 $3 $4 $5 $6 $7 $8 Co s t $0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 Mitcchell Park L P Library Ap Poten Percent Com pproved Ch ntial Chan   mpletion hange Orde ge Orders ers (CO's) (PCO's) and Outsttanding App Outs Flint 10% 20% proved CO's standing PC tco COR's % Contingenc % Contingenc     CO's cy cy Revised 11/10/11 4.418 (DT) 5.212 (DT) 4 (DT) $41.36M (Mitchell) $49.043M (Mitchell) $50M (Mitchell) $21.683M * (Main) $18M (Main) $18M (Main) 1.62 (Other) 3.745 (Other) 4 (Other) Cu r r e n t P r o j e c t i o n E n gi n e e r ' s E s t i m a t e Bo n d E l e c t i o n Es t i m a t e Dollars (Millions) Library Bond Fund Utilization Projections (June 2012) (Dollars in Millions) Mitchell Park Library Main Library Temporary Libraries & Bond Costs Series5 $69.08M $76M *The Main Library Projection was increased following Council approval on July 25, 2011 (Staff Report #1438) of approximately $1.7M of design amendments and future building improvements related to deferred maintenance, code upgrades and service enhancements. Palo Alto Library Projects Bi-Monthly Progress Report May - June 2012 Mitchell Park Library & Community Center Main Library Mitchell Park Main Entry Table of Contents Mitchell Park Library  Status Report  Management Summary  Action Items  Schedule Milestones Main Library  Status Report  Management Summary Library Closure Plan Financial Summary Mitchell Park Library & Community Center 3700 Middlefield Road, Palo Alto The new Mitchell Park Library and Community Center is a highly sustainable joint-use facility that will be a vibrant destination for civic, cultural, social, educational, and recreational activities. The new center, which will replace undersized and aged facilities, is made possible through Measure N and the strong partnership between the city and the community. During construction, temporary library and teen center facilities are available at the Cubberley Community Center. Library Roofing Started WEB CAM LINK: http://173.164.239.206/view/viewer_index.shtml May - June 2012 PROJECT CONSTRUCTION CONSTRUCTION BEGAN: September 2010 ANTICIPATED OPENING: Spring 2013 PROJECT TEAM OWNER: City of Palo Alto Public Works (650) 329-2295 ARCHITECT: Group 4 Architecture, Research + Planning Inc. South San Francisco, CA (650) 871-0709 GENERAL CONTRACTOR: Flintco Pacific, Inc. Roseville, CA (916) 757-1000 CONSTRUCTION MANAGER: Turner Construction Company San Jose, CA (408) 918-1600 FOR MORE INFORMATION www.cityofpaloalto.org/libraryprojects KEY ACCOMPLISHMENTS • Exterior Wall Dry in & Finishes • Plaster UPCOMING ACTIVITIES • Exterior Wall Finishes in Progress • Glass Installation nears Completion • Start of Drywall • Ceilings Library Curtain Wall System May - June 2012 Progress Photos Mitchell Park Library & Community Center Management Summary May - June 2012 Noteworthy Accomplishments • Dry-in Milestone achieved • Exterior wall dry-complete • Solar Hot Water and Vehicle Charger permits issued • Architects Supplemental Instructions completed plan check • Deferred submittals for library shelving and suspended ceiling completed plan check Current Project Challenges: • Processing the high volume of change documentation and providing direction ◊ Settle tube steel and exterior wall framing changes (Council approved) ◊ Settle waterproofing and sheet metal changes (Estimate complete) ◊ Significant number of new CORs to review • Submittals impacting material delivery and inspection (In progress but nothing completed) ◊ Photovoltaic systems need separate permits ◊ Deferred submittals for glass railings, elevators and need to complete plan check Safety • Public Safety is a priority outside the fence. No incidents reported to date • Attention is directed toward scaffold safety Quality Control • City & Special Inspectors re-inspect work several times ◊ Work is not always ready when inspection is requested ◊ Work does not consistently pass inspection ◊ Significant inspections need to pass before floors and walls can be covered up • Quality Control Observation Reports : 56 have been issued and 12 remain open • Glazing contractor is having difficulty meeting quality control standards ◊ 2 non-compliance notice issued for glazing Schedule: • New scheduling effort is focused on work to complete ◊ Contractor plans to ask for 1 year extension ◊ currently shows 9 months to complete. • Updates are not tied to baseline schedule. Track actual dates on the baseline schedule. Next Key Milestones: • Cover Walls – start Library 7/20 Teen Center 7/6 Community Center 7/6 • Ceilings - start Library 7/25 Teen Center 7/5 Community Center 7/17 • Permanent Power Library 8/9 Teen Center 11/21 Community Center 11/20 • Heat & A/C Online Library 9/14 Teen Center 12/21 Community Center 12/13 Mitchell Park Library & Community Center Schedule Milestones May - June 2012 Data Date 6/12/12 Activity ID Bldg-A Bldg-B Bldg-C Pad Certification 10/27/10 10/27/10 10/27/10 Foundation Complete 12/28/11 1/16/11 1/7/11 Frame & Place Slab on Grade 2/11/11 5/6/11 5/3/11 Top out Structural Steel Frame 5/31/11 4/15/11 5/12/11 2nd Floor Poured 4/16/11 X X Roof Poured 5/31/11 6/24/11 6/21/11 Frame Ext Walls EXT 4000 9/2/11 9/26/11 9/2/11 Building Dried In EXT 5555 6/8/12 6/8/12 6/8/12 Frame Interior Walls INT 1130 5/24/11 6/1/11 7/1/11 Insp - Wall rough in - OK drywall INT 2095/1100/2330 7/20/12 7/6/12 7/6/12 Insp - MEP overhead - OK ceiling ISP 1135/1110/2090 7/25/12 7/5/12 7/17/12 Casework Start Date MS 1050/1420 FIN1090 9/24/12 9/21/12 9/21/12 Ceiling Complete FIN 1120 10/22/12 10/26/12 10/11/12 Permanent Power EQU 2120/2010/2020 8/9/12 11/21/12 11/20/12 Heat & Air Conditioning Online EQU 1100/1090 9/14/12 12/21/12 12/13/12 Elevator Complete AEQU 1090 9/19/12 x x Final Clean MS 1070/1310/1440 12/6/12 11/12/12 11/20/12 Parking Paving Complete and Drive Entry's STE 1840 12/5/12 x x Substantial Completion PCO 1555/2555/3555 1/28/13 1/31/13 2/6/13 Certificate of Occupancy MS 1210/1270/1400 3/13/13 3/13/13 3/13/13 Building Air out and Commissioning complete EQU 1070 3/19/13 3/4/13 3/28/13 Date Main Library 1213 Newell Road, Palo Alto Exterior View May - June 2012 PROJECT CONSTRUCTION CONSTRUCTION STARTS: Summer 2013 ANTICIPATED OPENING: Fall 2014 PROJECT TEAM OWNER: City of Palo Alto Public Works (650) 329-2295 ARCHITECT: Group 4 Architecture, Research + Planning Inc. South San Francisco, CA (650) 871-0709 CONSTRUCTION MANAGER: TBD FOR MORE INFORMATION www.cityofpaloalto.org/libraryprojects KEY ACCOMPLSHMENTS • Council Approved o Scope Expansion o Connectivity with Art Center o Circulation at Community Gardens • Constructability Review UPCOMING ACTIVITIES • Construction Estimate Update • Plan Check Submittal The Palo Alto Main Library renovation and addition is in the final phase of design “Better Libraries for Palo Alto” projects, funded by the passage of Measure N by voters in 2008. The project incorporates upgrades to the historic building’s structural, electrical and mechanical systems while preserving the integrity of architect Edwards Durrell Stone’s iconic design. The new addition includes a program room and additional restrooms to extend the services of this heavily-used branch. The project targets LEED certification. Library Closure Plan May - June 2012 20 1 4 Main Library Opening to the Public in 2014 Downtown Library re-opened Mitchell Park Library and Community Center construction started, College Terrace Library re-opened Mitchell Park Library & Community Center Anticipated Public Public Opening in the Spring 2013 Main Library Closes for construction Mid 2013 20 1 0 20 1 1 20 1 2 20 1 3 April 2012 Mitchell Park Library Cost Comparison Table 1 Actual (Construction Cost) Definition: The total cost of construction. This figured is calculated my adding the construction contract amount to the construction contingency used. Project Name Construction Cost Contract Amount Contingency Contingency Used Actual1 Mitchell Park Library $24,365,000 $4,873,000 (20%) TBD TBD Alma Storm Drain Improvement $573,000 $57,300 (10%) $54,696 (9.54%) $627,696 Children’s Library $2,646,000 $317,520 (12%) $289,877 (10.96%) $2,935,877 College Terrace Library $1,365,988 $341,497 (25%) $224,658 (16.45%) $1,590,646 Downtown Library $2,500,000 $375,000 (15%) $375,000 (15%) $2,875,000 Greer Park $1,220,075 $122,008 (10%) $121,641 (9.97%) $1,341,716 Parking Lot (S/L/R) $22,535,000 $3,380,250 (15%) $2,372,415 (10.53%) $24,907,415 San Francisquito Pump Station $6,938,115 $693,812 (10%) $0 (0%) $6,778,636 Storm Drain Rehab (Phase IV) $144,000 $14,400 (10%) $14,396 (9.97%) $158,396 City of Palo Alto (ID # 3026) City Council Staff Report Report Type: Consent Calendar Meeting Date: 7/23/2012 Summary Title: Approval of an Agreement with Van Scoyoc Associates Inc. Title: Approval of an Agreement with Van Scoyoc Associates Inc. for Up to Three Years in an Amount not to Exceed a Total of $303,000 for Federal Legislative Representation From: City Manager Lead Department: City Manager RECOMMENDATION Staff recommends that the Council approve and authorize the City Manager or his designee to execute the attached contract with Van Scoyoc Associates Inc. (Attachment A) in the amount of $101,000 for the first year of the contract (July 1,2012– July 31, 2013); and $101,000 each in years two and three based on satisfactory performance of the firm. BACKGROUND For many years, the City has contracted with firms that have provided representation for the City in Washington, DC on Federal legislative issues. This representation is important for the City in several ways. Most importantly, it allows Palo Alto to have a presence and voice with our federal representatives when they are in Washington. It is important to have someone physically present in Washington scanning for issues that might impact Palo Alto and building relationships with key legislators and their staff members. In 2009, the City conducted its most recent request for proposals for federal legislative services. For the past three years (October 2009 to June 2012), the City has contracted with Van Scoyoc Associates Inc. (VSA) to provide guidance, support and to represent the City on federal legislative issues. For the five years prior to this, the City contracted with The Ferguson Group to provide these services. VSA is a bi-partisan, full-service Federal government relations firm that provides comprehensive legislative and executive Branch strategic advice, liaison service, and advocacy. VSA was established in 1990 and is the largest independent lobbying firm in Washington, D.C. VSA's current clients include a wide range of public and private interests, such as city and county governments, water and flood control districts, public transportation agencies, major research universities, hospitals, health care and research consortia, economic development authorities, and Fortune 500 companies. ANALYSIS Staff is requesting that the City Council approve this agreement with Van Scoyoc Associates Inc. (VSA) so that the firm can continue providing representation for the City in Washington, DC on federal legislative issues. Staff recommends continuing with VSA’s services to maintain the continuity of the City’s representation and the relationships with legislative and agency staff in Washington. VSA has provided valuable services to Palo Alto over the past three years and the firm has been successful in the following: 1. San Francisquito Creek: Additional funds were provided for the feasibility study in FY2010, the last year that congressional earmarks were allowed in appropriations bills. Since that time VSA has worked with the SJCJPA to secure Corps of Engineers workplan funds, seek a revision to Corps policy on advance work conducted by the local sponsor, secure authorization and policy revisions in the Water Resources Development Act, and expedite replacement of a PG&E gas pipeline to accommodate project construction. 2. National Flood Insurance Program: VSA led the effort to remove a provision in the NFIP reauthorization legislation that would have required property owners protected by levees to purchase flood insurance and be subject to permanent building restrictions. Flood insurance premiums would have cost Palo Alto residents an estimated $6 million per year and imposed more costly building restrictions for renovations and new development. The insurance mandate would have been a major disincentive for property owners to pay for flood control improvements when insurance would be required nonetheless. 3. High Speed Rail: VSA has met with senior officials at the Department of Transportation, to better understand their plans for the California High Speed Rail Project. VSA has participated in bi-monthly conference calls with the City and the City’s State lobbyist, sharing information on DOT’s plans, legislation and funding proposals related to high speed rail. 4. Hamilton Avenue Post Office: VSA has met with senior officials of the United States Postal Service and congressional staff about the process of acquiring the Hamilton Avenue facility and to help answer questions from the City about that acquisition process. 5. Transient Occupancy Taxes: VSA has worked with the City to rebuff repeated efforts by the online travel industry to preempt local governments from collecting transient occupancy taxes on temporary lodging. The collective effort of concerned cities has thwarted but not eliminated the prospect of halting this important revenue source for municipalities, already compromised by the online travel industry practice of withholding a portion of the taxes they collect. There have been several changes at the City staff level over the past two years in managing the City’s legislative program. However, recent staff additions and transitions will enable more dedicated and focused attention and oversight to the legislative program. In addition, a number of new provisions have been added to the scope of work for this agreement to better meet the current needs and interests of the City, expand the City's presence and efforts on issue advocacy at the federal level, and provide stronger coordination with City staff and VSA. Some examples include: 1. Conducting the assessment of City needs, opportunities and develop the City’s federal priorities and strategic plan earlier in the legislative calendar (October/November of each year). 2. Developing an action plan each year to accomplish the City’s federal legislative priorities and strategic plan. 3. Conducting regular meetings with legislative leads in City departments and the City’s rail lobbyist to coordinate on federal legislative issues and grant funding needs and opportunities. 4. Providing more targeted monthly reports to the City on the status of the City’s strategic plan priorities, including accomplishments, current status, activities and next steps. 5. Providing a final report on strategic plan priorities to evaluate the efficacy of its legislative efforts prior to considering the work plan for the following year. Staff anticipates conducting a study session in October 2012 on the federal legislative program. The study session will allow for Council input and discussion on the City's Federal legislative activities and priorities overall, and for the current year and next year. If approved, this agreement will authorize the City Manager to enter into a one year agreement with VSA federal legislative representation with options to renew the agreement for two additional years based on satisfactory performance. The City's points of contact for VSA would continue to be Vice President Thane Young, Vice President Steve Palmer and Government Affairs Directors Laura Morgan and Jackie Schmitz. Attachments: Attachment A. Van Scoyoc Agreement 2012 (DOC) Prepared By: Sheila Tucker, Assistant to the City Manager Department Head: James Keene, City Manager City Manager Approval: ____________________________________ James Keene, City Manager Attachment A Professional Services Rev. June 2, 2010 1 CITY OF PALO ALTO CONTRACT NO. C12146667 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND VAN SCOYOC ASSOCIATES, INC. FOR PROFESSIONAL SERVICES This Agreement is entered into on this day of July, 2012, (“Agreement”) by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and VAN SCOYOC ASSOCIATES, INC., a Washington DC Corporation, located at 101 Constitution Avenue, NW, Suite 600 West, Washington, D.C. 20001 (PH) 202-638- 1950,("CONSULTANT"). RECITALS The following recitals are a substantive portion of this Agreement. A. CITY intends to obtain Federal Legislative Representation (“Project”) and desires to engage a consultant to provide Federal Legislative and Regulatory Representation to advance the City’s objectives in Washington (“Services”). B. CONSULTANT has represented that it has the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY in reliance on these representations desires to engage CONSULTANT to provide the Services as more fully described in Exhibit “A”, attached to and made a part of this Agreement. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, this Agreement, the parties agree: AGREEMENT SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit “A” in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY. SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through 07/31/2013 unless terminated earlier pursuant to Section 19 of this Agreement. The CITY has the option to extend this contract for two additional one year terms. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit “B”, attached to and made a part of this Agreement. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. Professional Services Rev. July 17, 2012 2 C:\documents and settings\kwhitle\local settings\temp\minutetraq\paloaltocityca@paloaltocityca.iqm2.com\work\attachments\5996.doc SECTION 4. NOT TO EXCEED COMPENSATION. The compensation for professional services to be paid to CONSULTANT for performance of the Services described in Exhibit “A”, shall not exceed Eight Thousand Dollars ($8,000) per month and the total amount of compensation, including professional services and reimbursables shall not exceed One Hundred One Thousand Dollars ($101,000.00) per year. The applicable monthly rate and schedule of payment are set out in Exhibit “C”, entitled “COMPENSATION,” which is attached to and made a part of this Agreement. SECTION 5. INVOICES. The CITY will provide the CONSULTANT with an $8,000.00 flat fee retainer from which CONSULTANT will bill for it’s services. In order to request payment, CONSULTANT shall submit monthly invoices to the City. In addition, CONSULTANT shall maintain and keep on record the hours it has billed against the retainer and shall submit the invoices to the CITY upon request. Such documentation shall describe the services performed and the applicable charges (including an identification of personnel who performed the services, hours worked, hourly rates, and reimbursable expenses) for work conducted on each area of the CITY’s Strategic Plan. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All of the Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it possesses the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subconsultants, if permitted, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All of the services to be furnished by CONSULTANT under this agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services. SECTION 8. ERRORS/OMISSIONS. CONSULTANT shall correct, at no cost to CITY, any and all errors, omissions, or ambiguities in the work product submitted to CITY, provided CITY gives notice to CONSULTANT. If CONSULTANT has prepared plans and specifications or other design documents to construct the Project, CONSULTANT shall be obligated to correct any and all errors, omissions or ambiguities discovered prior to and during the course of construction of the Project. This obligation shall survive termination of the Agreement. SECTION 9. INDEPENDENT CONTRACTOR. It is understood and agreed that in performing the Services under this Agreement CONSULTANT, and any person employed by or contracted with Professional Services Rev. July 17, 2012 3 C:\documents and settings\kwhitle\local settings\temp\minutetraq\paloaltocityca@paloaltocityca.iqm2.com\work\attachments\5996.doc CONSULTANT to furnish labor and/or materials under this Agreement, shall act as and be an independent contractor and not an agent or employee of the CITY. SECTION 10. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s obligations hereunder without the prior written consent of the city manager. Consent to one assignment will not be deemed to be consent to any subsequent assignment. Any assignment made without the approval of the city manager will be void. SECTION 11. SUBCONTRACTING. CONSULTANT shall not subcontract any portion of the work to be performed under this Agreement without the prior written authorization of the city manager or designee. CONSULTANT shall be responsible for directing the work of any subconsultants and for any compensation due to subconsultants. CITY assumes no responsibility whatsoever concerning compensation. CONSULTANT shall be fully responsible to CITY for all acts and omissions of a subconsultant. CONSULTANT shall change or add subconsultants only with the prior approval of the city manager or his designee. SECTION 12. PROJECT MANAGEMENT. CONSULTANT will assign Thane Young, Vice President, as the Project Director, to have supervisory responsibility for the performance, progress, and execution of the Services, and Steve Palmer, Vice President, Laura Morgan, Director, Government Relations, and Jacqueline Schmitz, Director, Government Relations, as the project Team to represent CONSULTANT during the day-to-day work on the Project. If circumstances cause the substitution of the project director, project coordinator, or any other key personnel for any reason, the appointment of a substitute project director and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s project manager. CONSULTANT, at CITY’s request, shall promptly remove personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property. The City’s project manager is Sheila Tucker, Assistant to City Manager , Office of the City Manager, 250 Hamilton Avenue, Palo Alto, CA 94303, Telephone: (650) 329-2452, Email: sheila.tucker@cityofpaloalto.org The project manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. The CITY may designate an alternate project manager from time to time. SECTION 13. OWNERSHIP OF MATERIALS. Upon delivery, all work product, including without limitation, all writings, drawings, plans, reports, specifications, calculations, documents, other materials and copyright interests developed under this Agreement shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work pursuant to this Agreement shall be vested in CITY, and CONSULTANT waives and relinquishes all claims to copyright or other intellectual property rights in favor of the CITY. Neither CONSULTANT nor its contractors, if any, shall make any of such materials available to any individual or organization without the prior written approval of Professional Services Rev. June 28, 2012 5 C:\documents and settings\kwhitle\local settings\temp\minutetraq\paloaltocityca@paloaltocityca.iqm2.com\work\attachments\5996.doc the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the scope of work. SECTION 14. AUDITS. CONSULTANT will permit CITY to audit, at any reasonable time during the term of this Agreement and for three (3) years thereafter, CONSULTANT’s records pertaining to matters covered by this Agreement. CONSULTANT further agrees to maintain and retain such records for at least three (3) years after the expiration or earlier termination of this Agreement. SECTION 15. INDEMNITY. 15.1. To the fullest extent permitted by law, CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorneys fees, experts fees, court costs and disbursements (“Claims”) resulting from, arising out of or in any manner related to performance or nonperformance by CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. 15.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from Claims arising from the active negligence, sole negligence or willful misconduct of an Indemnified Party. 15.3. The acceptance of CONSULTANT’s services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 16. WAIVERS. The waiver by either party of any breach or violation of any covenant, term, condition or provision of this Agreement, or of the provisions of any ordinance or law, will not be deemed to be a waiver of any other term, covenant, condition, provisions, ordinance or law, or of any subsequent breach or violation of the same or of any other term, covenant, condition, provision, ordinance or law. SECTION 17. INSURANCE. 17.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit "D". CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 17.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. Professional Services Rev. June 28, 2012 6 C:\documents and settings\kwhitle\local settings\temp\minutetraq\paloaltocityca@paloaltocityca.iqm2.com\work\attachments\5996.doc 17.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days' prior written notice of the cancellation or modification, CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY’s Purchasing Manager during the entire term of this Agreement. 17.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT's liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired. SECTION 18. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 18.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. Upon receipt of such notice, CONSULTANT will immediately discontinue its performance of the Services. 18.2. CONSULTANT may terminate this Agreement or suspend its performance of the Services by giving thirty (30) days prior written notice thereof to CITY, but only in the event of a substantial failure of performance by CITY. 18.3. Upon such suspension or termination, CONSULTANT shall deliver to the City Manager immediately any and all copies of studies, sketches, drawings, computations, and other data, whether or not completed, prepared by CONSULTANT or its contractors, if any, or given to CONSULTANT or its contractors, if any, in connection with this Agreement. Such materials will become the property of CITY. 18.4. Upon such suspension or termination by CITY, CONSULTANT will be paid for the Services rendered or materials delivered to CITY in accordance with the scope of services on or before the effective date (i.e., 10 days after giving notice) of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s services which are of direct and immediate benefit to CITY as such determination may be made by the City Manager acting in the reasonable exercise of his/her discretion. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 19.4, 20, and 25. 18.5. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement. SECTION 19. NOTICES. Professional Services Rev. June 28, 2012 7 C:\documents and settings\kwhitle\local settings\temp\minutetraq\paloaltocityca@paloaltocityca.iqm2.com\work\attachments\5996.doc All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY: Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Purchasing Manager To CONSULTANT: Attention of the project director at the address of CONSULTANT recited above SECTION 20. CONFLICT OF INTEREST. 20.1. In accepting this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 20.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subconsultants, contractors or persons having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California. 20.3. If the Project Manager determines that CONSULTANT is a “Consultant” as that term is defined by the Regulations of the Fair Political Practices Commission, CONSULTANT shall be required and agrees to file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act. SECTION 21. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. Professional Services Rev. June 28, 2012 8 C:\documents and settings\kwhitle\local settings\temp\minutetraq\paloaltocityca@paloaltocityca.iqm2.com\work\attachments\5996.doc SECTION 22. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the City’s Environmentally Preferred Purchasing policies which are available at the City’s Purchasing Department, incorporated by reference and may be amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of the City’s Zero Waste Program. Zero Waste best practices include first minimizing and reducing waste; second, reusing waste and third, recycling or composting waste. In particular, Consultant shall comply with the following zero waste requirements: All printed materials provided by Consultant to City generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by the City’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post-consumer material and printed with vegetable based inks. Goods purchased by Consultant on behalf of the City shall be purchased in accordance with the City’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Office. Reusable/returnable pallets shall be taken back by the Consultant, at no additional cost to the City, for reuse or recycling. Consultant shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 23. NON-APPROPRIATION 24.1. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 24. MISCELLANEOUS PROVISIONS. 24.1. This Agreement will be governed by the laws of the State of California. 24.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California. 24.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys' fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties. Professional Services Rev. June 28, 2012 9 C:\documents and settings\kwhitle\local settings\temp\minutetraq\paloaltocityca@paloaltocityca.iqm2.com\work\attachments\5996.doc 24.4. This document represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This document may be amended only by a written instrument, which is signed by the parties. 24.5. The covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators, assignees, and consultants of the parties. 24.6. If a court of competent jurisdiction finds or rules that any provision of this Agreement or any amendment thereto is void or unenforceable, the unaffected provisions of this Agreement and any amendments thereto will remain in full force and effect. 24.7. All exhibits referred to in this Agreement and any addenda, appendices, attachments, and schedules to this Agreement which, from time to time, may be referred to in any duly executed amendment hereto are by such reference incorporated in this Agreement and will be deemed to be a part of this Agreement. 24.8 If, pursuant to this contract with CONSULTANT, City shares with CONSULTANT personal information as defined in California Civil Code section 1798.81.5(d) about a California resident (“Personal Information”), CONSULTANT shall maintain reasonable and appropriate security procedures to protect that Personal Information, and shall inform City immediately upon learning that there has been a breach in the security of the system or in the security of the Personal Information. CONSULTANT shall not use Personal Information for direct marketing purposes without City’s express written consent. 24.9 All unchecked boxes do not apply to this agreement. 24.10 The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. Professional Services Rev. June 28, 2012 10 C:\documents and settings\kwhitle\local settings\temp\minutetraq\paloaltocityca@paloaltocityca.iqm2.com\work\attachments\5996.doc IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement on the date first above written. CITY OF PALO ALTO ____________________________ City Manager APPROVED AS TO FORM: __________________________ Senior Asst. City Attorney Date: VAN SCOYOC ASSOCIATES, INC. By:___________________________ Name:_________________________ Title:________________________ Attachments: EXHIBIT “A”: SCOPE OF WORK EXHIBIT “B”: SCHEDULE OF PERFORMANCE EXHIBIT “C”: COMPENSATION EXHIBIT “D”: INSURANCE REQUIREMENTS Professional Services Rev. June 28, 2012 11 C:\documents and settings\kwhitle\local settings\temp\minutetraq\paloaltocityca@paloaltocityca.iqm2.com\work\attachments\5996.doc EXHIBIT “A” SCOPE OF SERVICES Federal Legislative Services Analysis & Goal Setting Due Date 1. Conduct Strategic Assessment of Opportunities - gain a complete understanding of City priorities and services through input from staff and the Council to ensure that the city is taking advantage of every opportunity for federal assistance whether through appropriations or grants. October 2. Assist the City to set short and long-term legislative priorities for the City and performance of an in-depth analysis of current and anticipated congressional legislation and federal funding opportunities on annual basis. October/ Ongoing 3. Develop an annual Federal Legislative Agenda and Strategic Plan – create an action plan t accomplish the City’s goals and objectives and draft a Federal Legislative Agenda or Strategic Plan. Once approved by the City, this agenda will outline an approach for working with the appropriate House and Senate Members, congressional committees and the Administration. November Administrative Services 1. Agency Coordination – assist City in coordinating with Federal agencies which distribute appropriation or grant funds. On-going 2. Forms, Fact Sheets, and Letters – work with City staff to draft forms, fact sheets and letters that will be used to seek funding and oppose or support legislation. On-going 3. Prepare the City for Washington, D.C. Visits – arrange meetings with congressional delegation and their staffs and other important federal officials; prepare the City and local officials for those visits; and guide the city through these meetings in order to optimize effectiveness. 4. Legislative Markups –guide City’s projects through the markup of spending and authorizing legislation in the relevant subcommittees and committees. On-going 5. Legislative Tracking –track City’s projects as legislation and administrative actions progress, so the City knows when, and how, to advocate for these projects at critical times. On-going 6. Regular Reporting –provide regular status reports and updates to the City on the status of the City’s Strategic Plan, legislative priorities, and funding opportunities. Projects and provide periodic written, verbal and electronic reports to the City. Provide weekly report on general activities in Washington and Congress. Provide monthly reports to City on status of strategic plan. priorities, including current status, activities and next steps. Weekly Monthly Professional Services Rev. July 17, 2012 12 C:\documents and settings\kwhitle\local settings\temp\minutetraq\paloaltocityca@paloaltocityca.iqm2.com\work\attachments\5996.doc Provide a final report prior to considering work plan for the following year. October 7. Attend all relevant industry meetings in Washington D.C. in order to provide up-to-the-minute intelligence. On-going 8. Agency Implementation – The consultant will also help the City work with federal agencies that will administer any congressional appropriation projects, in order to establish funding arrangements and implement these projects. On-going 9. Conference Calls – conduct weekly or monthly conference calls with City staff on federal activities and legislation including the City’s State High Speed Rail lobbyist, to ensure the Federal Legislative Agenda or Strategic Plan is being implemented. On-going Outreach and Advocacy 1. Work with Federal department personal and Subcommittee Staff –work directly with staff in congressional offices and Subcommittees to promote the City’s projects, gather timely information, and advance efforts. On-going 2. Stakeholder Support – work with the City and its partners to gather and effectively convey support from stakeholders in local and state government, business and educational communities, and prominent citizens, through letters, phone calls, and visits. On-going 3. Media and News – coordinate with City on current events and its implication to the community. Prepare or review press releases as needed. On-going Professional Services Rev. July 17, 2012 13 C:\documents and settings\kwhitle\local settings\temp\minutetraq\paloaltocityca@paloaltocityca.iqm2.com\work\attachments\5996.doc EXHIBIT “B” SCHEDULE OF PERFORMANCE CONSULTANT shall provide the Services on a schedule in liaison with the Legislative calendar year. CONSULTANT will develop a schedule with CITY Staff to pursue projects and programs identified by CITY as priority and in line with established timelines and deadlines. CONSULTANT shall work with City Staff to develop and implement a schedule which shall maximize CITY’s opportunities for securing Federal funding, appropriations and discretionary grants. Professional Services Rev. July 17, 2012 14 C:\documents and settings\kwhitle\local settings\temp\minutetraq\paloaltocityca@paloaltocityca.iqm2.com\work\attachments\5996.doc EXHIBIT “C” COMPENSATION The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement, to the reasonable satisfaction of the CITY. The CITY will provide the CONSULTANT with an $8,000.00 flat fee retainer from which CONSULTANT will bill for it’s services. In order to request payment, CONSULTANT shall submit monthly invoices to the City. In addition, CONSULTANT shall maintain and keep on record the hours it has billed against the retainer and shall submit the invoices to the CITY upon request. Such documentation shall describe the services performed and the applicable charges (including an identification of personnel who performed the services, hours worked, hourly rates, and reimbursable expenses) for work conducted on each area of the CITY’s Strategic Plan. In addition, CITY will compensate CONSULTANT for incurred Reimbursable Expenses in an amount Not to Exceed $5,000 per Year. Reasonable Expenses include directly related business expenses and travel, including but not limited to, duplicating documents, binding reports, mileage, phone, supplies, FAX, postage, travel, hotel, meals, etc. Professional Services Rev July 17, 2012 18 C:\documents and settings\kwhitle\local settings\temp\minutetraq\paloaltocityca@paloaltocityca.iqm2.com\work\attachments\5996.doc EXHIBIT “D” INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS” A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. B. CROSS LIABILITY Professional Services Rev July 17, 2012 19 C:\documents and settings\kwhitle\local settings\temp\minutetraq\paloaltocityca@paloaltocityca.iqm2.com\work\attachments\5996.doc THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. NOTICES SHALL BE MAILED TO: PURCHASING AND CONTRACT ADMINISTRATION CITY OF PALO ALTO P.O. BOX 10250 PALO ALTO, CA 94303 CITY OF PALO ALTO OFFICE OF THE CITY CLERK July 23, 2012 The Honorable City Council Palo Alto, California Direction to City Clerk to Use the Secretary of States' Randomized Alphabet Drawing for the Order of Candidates' Names on the November 6, 2012 Ballot RECOMMENDATION: Direct the City Clerk to notify the Registrar of Voters that the City of Palo Alto will be utilizing the Secretary of States’ randomized alphabet drawing for the purposes of the order of the candidates’ names on the November 6, 2012 ballot. BACKGROUND: The City Council has passed Resolution No. 9254 calling a General Municipal Election for four Council seats on November 6, 2012. The City Charter, Section 3, requires that the order of listing of the candidates’ names on the ballot shall be determined by lot. The Nomination Period for candidacy does not end until August 15, 2012, which is when the City Council is on their summer break. I am requesting that the City Council defer the ballot order to the drawing of the Secretary of State. Department Head: Donna Grider, City Clerk Updated: 7/17/2012 5:20 PM by Donna Grider Page 2 CITY OF PALO ALTO OFFICE OF THE CITY AUDITOR July 23, 2012 The Honorable City Council Palo Alto, California Policy and Services Committee Recommendation to Accept the Policy for Administering the Employee Ethics Hotline The City Auditor’s Office recommends acceptance of the Policy for Administering the Employee Ethics Hotline. At its meeting on June 12, 2012, the Policy and Services Committee approved and unanimously recommended the City Council accept the report. The Policy and Services Committee minutes are included in this packet. Respectfully submitted, Jim Pelletier City Auditor Department Head: Jim Pelletier, City Auditor Updated: 7/17/2012 12:15 PM by Deniz Tunc Page 2 CITY OF PALO ALTO Fraud, Waste, and Abuse Hotline Administration Policy Page 1 of 7 City Employee Fraud, Waste, and Abuse Hotline Administration Policy Attachment A CITY OF PALO ALTO Fraud, Waste, and Abuse Hotline Administration Policy Page 2 of 7 Table of Contents 1. Objective ......................................................................................................................... 3 2. Structure ......................................................................................................................... 3 3. Hotline Review Committee ............................................................................................. 3 4. Case Management .......................................................................................................... 3 5. Case Dissemination ......................................................................................................... 4 6. Escalation ........................................................................................................................ 5 7. Reporting......................................................................................................................... 5 8. Prohibition Against Retaliation ....................................................................................... 5 9. Terms and Definitions ..................................................................................................... 5 10. Security of Incident Reports and Associated Reports, Working Papers, and Other Related Documents .......................................................................................................................... 6 11. Custody of Investigation Documents ................................................................... 6 12. Public Requests for Information Regarding All Incident Reports ............................. 6 13. Filing of Malicious Complaints ............................................................................ 7 Attachment A CITY OF PALO ALTO Fraud, Waste, and Abuse Hotline Administration Policy Page 3 of 7 1. Objective The primary objective of the City of Palo Alto Fraud, Waste, or Abuse Hotline (“Hotline”) is to provide an anonymous mechanism for employees to report fraud, waste, or abuse by City employees. City employees who have specific information that other City employees have engaged in fraud, waste, or abuse are encouraged to report such information through the normal chain of command which includes their immediate supervisor, manager, department head, Human Resources, and the City Manager’s Office (CMO). However, there may be certain circumstances where an employee believes it is necessary to remain anonymous. The Hotline provides an anonymous method of reporting such incidents over the phone to a third-party interviewer or via an anonymous web form. The City believes that anonymity is a last resort and should only be used after other reporting methods have been attempted or when the employee has a reasonable good faith belief that it is necessary. All reports made regarding fraud, waste, or abuse should be made seriously and with due professional care. 2. Structure The Hotline is hosted by an independent, third-party provider (vendor) contracted by the City. The vendor provides the option for callers to provide information over the Hotline anonymously. The vendor issues an Incident Report for each call and submits the Incident Reports for review and referral. The vendor provides offsite hotline coverage 24/7/365 and live interviewers who obtain the information deemed necessary to verify and process the complaints. This information is then transcribed into an Incident Report, housed in a case management system. 3. Hotline Review Committee The Hotline Review Committee (“Committee”) is composed of the following members or their designees: the City Auditor, the City Manager, and the City Attorney. The Committee meets as needed to review all activity related to the Hotline. The objectives of the Committee are to review all Incident Reports, determine whether an Incident Report should be investigated, assign Incident Reports to the appropriate department or unit for investigation, ensure that Incident Reports that are assigned for investigation are adequately investigated, and address any trends in activity or weaknesses in City policies requiring corrective action to be taken. Duplicate reports or reports that do not suggest fraud, waste, or abuse may be closed without further investigation. 4. Case Management The online case management system allows for all Hotline reports to be recorded, updated and tracked in one centralized system to ensure that all reports are addressed appropriately and that the outcomes are consistent. All Incident Reports are maintained in the secured case management system and are periodically updated with the status of the investigation by the specified department case management users and the OCA. Case management users include staff of the OCA who act as administrators of the case management system, and one or more members of management from each department who will Attachment A CITY OF PALO ALTO Fraud, Waste, and Abuse Hotline Administration Policy Page 4 of 7 be assigned to respond to incidents within their departments. User access is limited to cases assigned to them. Additionally, the CMO will be provided certain administrative functions in the case management system in order to create a check-and-balances system to ensure that the OCA is not investigating reports that could be a conflict of interest for OCA employees. 5. Case Dissemination After a call has been entered as an Incident Report and logged into the case management system by the vendor, the report is sent electronically to the appropriate contacts at the OCA for preliminary review within 24 hours. The OCA will triage the report to determine if immediate action may be necessary. If immediate action appears necessary, the OCA will contact the Hotline Review Committee who will decide whether to initiate an investigation. Incident Reports requiring immediate action include those involving possible fraud, waste, or abuse by City executives, or other incidents based on the judgment of the Hotline Review Committee. All other cases will be referred to the Hotline Review Committee in their scheduled meetings. If an Incident Report involves one or more members of the Hotline Review Committee, those individuals shall be excluded from any decisions or activities related to the review and/or investigation of that Incident Report. If this occurs, a Senior Performance Auditor, Assistant City Manager, and/or Senior Assistant City Attorney, if needed, will act as members of the Hotline Review Committee to ensure there are a minimum of two officials providing oversight of the review and investigation of the Incident Report. Because the members of the Hotline Review Committee are appointed by the City Council, the Hotline will not accept incidents involving members of the City Council. Employees reporting these types of complaints will be referred to the California Fair Political Practices Commission, the District Attorney’s Office, or other appropriate outside agency, depending upon the nature of the complaint. Each department will have one or more dedicated contacts who will receive the Incident Report from the Hotline Review Committee, disseminate it to the appropriate staff within their department, and access the Report in the case management system to either assign it to another user in their department to manage the case or make updates as to the case disposition themselves. The dedicated department contact will complete the preliminary case closure before the Hotline Review Committee reviews and formally closes an Incident Report. As the Hotline Administrator, the OCA will be responsible for:  Monitoring of all Incident Reports referred to other departments or units for investigation, and their outcomes,  Conducting an independent investigation of reported incidents when appropriate,  Monitoring the timeliness of department responses based on timeframes established by the Hotline Review Committee, and  Closing Incident Reports after the final review of the Hotline Review Committee. Attachment A CITY OF PALO ALTO Fraud, Waste, and Abuse Hotline Administration Policy Page 5 of 7 6. Escalation An incident is designated for escalation if there is an imminent or significant threat of actual harm to employees, customers, or operations. When a report is designated for escalation by the vendor, they shall immediately call the appropriate designated contact(s) provided by the City. Escalation contacts include the members of the Hotline Review Committee and their designees. 7. Reporting The case management system allows for customized reporting of incidents reported to the Hotline. Users may sort information and run reports on cases assigned to them, and administrators may create reports on case dispositions, status, corrective action taken, and other trends. The OCA will provide a quarterly summary report of complaints received by the Hotline to the City Council as an Information Item. The form and content of the quarterly report shall be at the discretion of the City Auditor, will be presented to and reviewed by the Hotline Review Committee, and will generally include the following:  The number of reports made to the Hotline,  The general types of complaints received,  Any trends in the types of complaints received, and  Any corrective action taken by City management as a result of a complaint received. 8. Prohibition Against Retaliation No department or employee shall take any adverse action or retaliate against any employee for making a report to the Hotline (except as provided in “Filing of Malicious Complaints,” below). Additionally, no reprisal shall be taken against any employee who participates in any manner in the investigation and disposition of a Hotline Incident Report. This Prohibition Against Retaliation is a statement of City policy. It is not intended to and shall not create a private right of action enforceable in state or federal court on behalf of any person, against the City or any employee, for equitable relief or damages. 9. Terms and Definitions Under California law, the term, "fraud, waste, or abuse" means: Any activity by a local agency or employee that is undertaken in the performance of the employee's official duties, including activities deemed to be outside the scope of his or her employment, that:  Is in violation of any local, state, or federal law or regulation relating to: o Corruption, o Malfeasance, o Bribery, o Theft of government property, o Fraudulent claims, Attachment A CITY OF PALO ALTO Fraud, Waste, and Abuse Hotline Administration Policy Page 6 of 7 o Fraud, o Coercion, o Conversion, o Malicious prosecution, o Misuse of government property, or o Willful omission to perform duty,  Is economically wasteful, or  Involves gross misconduct. 10. Security of Incident Reports and Associated Reports, Working Papers, and Other Related Documents  Incident Reports, associated reports, working papers, and other documents referring to or describing Incident Reports, which are received either through the Hotline, by mail, or e-mail shall remain confidential to the extent allowed by law.  Incident Reports and associated case numbers shall only be provided to individuals who are responsible and essential for conducting the investigation or reviewing of the Incident Report. These individuals are required to hold such information in confidence, to the extent allowed by law.  The confidentiality of all Incident Reports, associated reports, working papers, and other documents shall be maintained at all times by the City Auditor and investigating/reviewing departments, who shall take such measures as they determine are reasonable and necessary to maintain the confidentiality of such information and documents, to the extent allowed by law.  City Staff responsible for reviewing/investigating Incident Reports can make investigative disclosures of information contained in an Incident Report to the extent necessary for obtaining additional information relevant to the investigation.  The Hotline Review Committee is authorized to determine the distribution or release of any Incident Reports, associated reports, working papers, other documents and correspondence associated thereto, in accordance with the California Public Records Act and other applicable law.  The City Council may, at their discretion, authorize the release of information relative to substantiated incident reports. 11. Custody of Investigation Documents The City Auditor shall maintain custody of Incident Reports, associated reports, working papers, emails, and all other pertinent information regarding any investigations of Incident Reports. Other parties involved in the investigation shall also retain their own documentation. All such documents shall be retained and or disposed of in accordance with applicable document retention policies of the City. 12. Public Requests for Information Regarding All Incident Reports All requests for information concerning any Incident Report shall be directed to the City Auditor for a response. The City Auditor, with the guidance of the Hotline Review Committee, shall respond to such Attachment A CITY OF PALO ALTO Fraud, Waste, and Abuse Hotline Administration Policy Page 7 of 7 requests as permissible and in accordance with applicable state law and City policy, rules and regulations. Departments shall notify the City Auditor of any Public Records Act or other requests for information or documents regarding Incident Reports received through the City Auditor or the Hotline. 13. Filing of Malicious Complaints The City will not tolerate malicious complaints. The processing of a complaint/concern requires staff time and attention regardless of its appropriateness. Complaints/concerns will not be considered malicious merely because they are determined to be unsubstantiated. A malicious complaint/concern is one that is made in bad faith or with knowledge that the complaint entirely lacks any factual basis. Malicious complaints may result in disciplinary action in accordance with applicable City policies and procedures, up to and including termination from employment. Attachment A CITY OF PALO ALTO OFFICE OF THE CITY AUDITOR June 12, 2012 The Honorable City Council Attention: Policy & Services Committee Palo Alto, California Policy for Administering the Employee Ethics Hotline In accordance with the Fiscal Year (FY) 2012 Annual Audit Work Plan, the City Auditor’s Office has contracted with EthicsPoint, Inc. to implement an employee-only fraud, waste and abuse hotline. In July 2011, the City Council approved the Auditor’s Office implementation plan for an 18-month pilot program. The Auditor’s Office will coordinate with the City Manager’s Office and the City Attorney’s Office in responding to complaints. The Auditor’s Office will also provide the Policy and Services Committee with regular reports on the implementation of the hotline. The City Auditor’s Office recommends the Policy and Services Committee accepts and recommend to the City Council the City Employee Ethics Hotline Administration Policy. Respectfully submitted, Jim Pelletier City Auditor ATTACHMENTS:  Attachment A: Ethics Hotline Administration Policy (PDF) Department Head: Jim Pelletier, City Auditor Attachment B Updated: 6/6/2012 11:54 AM by Deniz Tunc Page 2 Attachment B CITY OF P Fraud, Wa   Fr   PALO ALTO   aste, or Abuse raud, W e Hotline Adm Waste, o ministration P City E or Abu P Policy       Employ se Hot Policy      yee   tline Addminist Page  tration 1 of 7   Attachment B CITY OF PALO ALTO   Fraud, Waste, or Abuse Hotline Administration Policy Page 2 of 7 Table of Contents      1. Objective ......................................................................................................................... 3  2. Structure ......................................................................................................................... 3  3. Hotline Review Committee ............................................................................................. 3  4. Case Management .......................................................................................................... 3  5. Case Dissemination ......................................................................................................... 4  6. Escalation ........................................................................................................................ 5  7. Reporting......................................................................................................................... 5  8. Prohibition Against Retaliation ....................................................................................... 5  9. Terms and Definitions ..................................................................................................... 5  10. Security of Incident Reports and Associated Reports, Working Papers, and Other Related  Documents .......................................................................................................................... 6  11. Custody of Investigation Documents .................................................................... 6  12. Public Requests for Information Regarding All Incident Reports .............................. 6  13. Filing of Malicious Complaints ............................................................................. 7          Attachment B CITY OF PALO ALTO   Fraud, Waste, or Abuse Hotline Administration Policy Page 3 of 7 1. Objective    The primary objective of the City of Palo Alto Fraud, Waste, or Abuse Hotline (“Hotline”) is to provide an  anonymous mechanism for employees to report fraud, waste, or abuse by City employees.     City employees who have specific information that other City employees have engaged in fraud, waste,  or abuse are encouraged to report such information to their immediate supervisor, manager,  department head, Human Resources, the City Manager’s Office (CMO), or the Office of the City Auditor  (OCA). However, there may be certain circumstances where an employee believes it is necessary to  remain anonymous.  The Hotline provides an anonymous method of reporting such incidents over the  phone to a third‐party interviewer or via an anonymous web form.  The City believes that anonymity is a  last resort and should only be used after other reporting methods have been attempted or when the  employee has a reasonable good faith belief that it is necessary.  All reports made regarding fraud,  waste, or abuse should be made seriously and with due professional care.      2. Structure    The Hotline is hosted by an independent, third‐party provider (vendor) contracted by the City. The  vendor provides the option for callers to provide information over the Hotline anonymously. The vendor  issues an Incident Report for each call and submits the Incident Reports for review and referral. The  vendor provides offsite hotline coverage 24/7/365 and live interviewers who obtain the information  deemed necessary to verify and process the complaints. This information is then transcribed into an  Incident Report, housed in a case management system.     3. Hotline Review Committee    The Hotline Review Committee (“Committee”) is composed of the following members or their  designees: the City Auditor, the City Manager, and the City Attorney. The Committee meets as needed  to review all activity related to the Hotline. The objectives of the Committee are to review all Incident  Reports, determine whether an Incident Report should be investigated, assign Incident Reports to the  appropriate department or unit for investigation, ensure that Incident Reports that are assigned for  investigation are adequately investigated, and address any trends in activity or weaknesses in City  policies requiring corrective action to be taken. Duplicate reports or reports that do not suggest fraud,  waste, or abuse may be closed without further investigation.    4. Case Management    The online case management system allows for all Hotline reports to be recorded, updated and tracked  in one centralized system to ensure that all reports are addressed appropriately and that the outcomes  are consistent. All Incident Reports are maintained in the secured case management system and are  periodically updated with the status of the investigation by the specified department case management  users and the OCA. Case management users include staff of the OCA who act as administrators of the  case management system, and one or more members of management from each department who will  Attachment B CITY OF PALO ALTO   Fraud, Waste, or Abuse Hotline Administration Policy Page 4 of 7 be assigned to respond to incidents within their departments. User access is limited to cases assigned to  them.     Additionally, the CMO will be provided certain administrative functions in the case management system  in order to create a check‐and‐balances system to ensure that the OCA is not investigating reports that  could be a conflict of interest for OCA employees.     5. Case Dissemination    After a call has been entered as an Incident Report and logged into the case management system by the  vendor, the report is sent electronically to the appropriate contacts at the OCA for preliminary review  within 24 hours. The OCA will triage the report to determine if immediate action may be necessary. If  immediate action appears necessary, the OCA will contact the Hotline Review Committee who will  decide whether to initiate an investigation. Incident Reports requiring immediate action include those  involving possible fraud, waste, or abuse by City executives, or other incidents based on the judgment of  the Hotline Review Committee. All other cases will be referred to the Hotline Review Committee in their  scheduled meetings.    If an Incident Report involves one or more members of the Hotline Review Committee, those individuals  shall be excluded from any decisions or activities related to the review and/or investigation of that  Incident Report.  If this occurs, a Senior Performance Auditor, Assistant City Manager, and/or Senior  Assistant City Attorney, if needed, will act as members of the Hotline Review Committee to ensure there  are a minimum of two officials providing oversight of the review and investigation of the Incident  Report.     Because the members of the Hotline Review Committee are appointed by the City Council, the Hotline  will not accept incidents involving members of the City Council. Employees reporting these types of  complaints will be referred to the California Fair Political Practices Commission, the District Attorney’s  Office, or other appropriate outside agency, depending upon the nature of the complaint.     Each department will have one or more dedicated contacts who will receive the Incident Report from  the Hotline Review Committee, disseminate it to the appropriate staff within their department, and  access the Report in the case management system to either assign it to another user in their department  to manage the case or make updates as to the case disposition themselves. The dedicated department  contact will complete the preliminary case closure before the Hotline Review Committee reviews and  formally closes an Incident Report.     As the Hotline Administrator, the OCA will be responsible for:      Monitoring of all Incident Reports referred to other departments or units for investigation, and  their outcomes,   Conducting an independent investigation of reported incidents when appropriate,   Monitoring the timeliness of department responses based on timeframes established by the  Hotline Review Committee, and   Closing Incident Reports after the final review of the Hotline Review Committee.  Attachment B CITY OF PALO ALTO   Fraud, Waste, or Abuse Hotline Administration Policy Page 5 of 7 6. Escalation    An incident is designated for escalation if there is an imminent or significant threat of actual harm to  employees, customers, or operations. When a report is designated for escalation by the vendor, they  shall immediately call the appropriate designated contact(s) provided by the City. Escalation contacts  include the members of the Hotline Review Committee and their designees.     7. Reporting    The case management system allows for customized reporting of incidents reported to the Hotline.  Users may sort information and run reports on cases assigned to them, and administrators may create  reports on case dispositions, status, corrective action taken, and other trends. The OCA will provide a  quarterly summary report of complaints received by the Hotline to the City Council as an Information  Item. The form and content of the quarterly report shall be at the discretion of the City Auditor, will be  presented to and reviewed by the Hotline Review Committee, and will generally include the following:      The number of reports made to the Hotline,   The general types of complaints received,   Any trends in the types of complaints received, and   Any corrective action taken by City management as a result of a complaint received.    8. Prohibition Against Retaliation    No department or employee shall take any adverse action or retaliate against any employee for making  a report to the Hotline (except as provided in “Filing of Malicious Complaints,” below). Additionally, no  reprisal shall be taken against any employee who participates in any manner in the investigation and  disposition of a Hotline Incident Report.     This Prohibition Against Retaliation is a statement of City policy.  It is not intended to and shall not  create a private right of action enforceable in state or federal court on behalf of any person, against the  City or any employee, for equitable relief or damages.      9. Terms and Definitions    Under California law, the term, "fraud, waste, or abuse" means:    Any activity by a local agency or employee that is undertaken in the performance of the employee's  official duties, including activities deemed to be outside the scope of his or her employment, that:     Is in violation of any local, state, or federal law or regulation relating to:   o Corruption,   o Malfeasance,   o Bribery,   o Theft of government property,   o Fraudulent claims,  Attachment B CITY OF PALO ALTO   Fraud, Waste, or Abuse Hotline Administration Policy Page 6 of 7 o Fraud,   o Coercion,   o Conversion,   o Malicious prosecution,   o Misuse of government property, or   o Willful omission to perform duty,      Is economically wasteful, or    Involves gross misconduct.    10. Security of Incident Reports and Associated Reports, Working Papers, and  Other Related Documents     Incident Reports, associated reports, working papers, and other documents referring to or  describing Incident Reports, which are received either through the Hotline, by mail, or e‐mail shall  remain confidential to the extent allowed by law.   Incident Reports and associated case numbers shall only be provided to individuals who are  responsible and essential for conducting the investigation or reviewing of the Incident Report. These  individuals are required to hold such information in confidence, to the extent allowed by law.   The confidentiality of all Incident Reports, associated reports, working papers, and other documents  shall be maintained at all times by the City Auditor and investigating/reviewing departments, who  shall take such measures as they determine are reasonable and necessary to maintain the  confidentiality of such information and documents, to the extent allowed by law.   City Staff responsible for reviewing/investigating Incident Reports can make investigative disclosures  of information contained in an Incident Report to the extent necessary for obtaining additional  information relevant to the investigation.   The Hotline Review Committee is authorized to determine the distribution or release of any Incident  Reports, associated reports, working papers, other documents and correspondence associated  thereto, in accordance with the California Public Records Act and other applicable law.   The City Council may, at their discretion, authorize the release of information relative to  substantiated incident reports.    11. Custody of Investigation Documents    The City Auditor shall maintain custody of Incident Reports, associated reports, working papers, emails,  and all other pertinent information regarding any investigations of Incident Reports. Other parties  involved in the investigation shall also retain their own documentation. All such documents shall be  retained and or disposed of in accordance with applicable document retention policies of the City.    12. Public Requests for Information Regarding All Incident Reports     All requests for information concerning any Incident Report shall be directed to the City Auditor for a  response. The City Auditor, with the guidance of the Hotline Review Committee, shall respond to such  Attachment B CITY OF PALO ALTO   Fraud, Waste, or Abuse Hotline Administration Policy Page 7 of 7 requests as permissible and in accordance with applicable state law and City policy, rules and  regulations.  Departments shall notify the City Auditor of any Public Records Act or other requests for information or  documents regarding Incident Reports received through the City Auditor or the Hotline.    13. Filing of Malicious Complaints    The City will not tolerate malicious complaints. The processing of a complaint/concern requires staff  time and attention regardless of its appropriateness. Complaints/concerns will not be considered  malicious merely because they are determined to be unsubstantiated. A malicious complaint/concern is  one that is made in bad faith or with knowledge that the complaint entirely lacks any factual basis.  Malicious complaints may result in disciplinary action in accordance with applicable City policies and  procedures, up to and including termination from employment.      Attachment B 06/12/2012 1 POLICY AND SERVICES COMMITTEE Special Meeting June 12, 2012 Roll Call Chairperson Holman called the meeting to order at 6:03 p.m. in the Council Conference Room, 250 Hamilton Avenue, Palo Alto, California. Present: Espinosa, Holman (Chair), Klein, Schmid Absent: None Agenda Items 1. Policy for Administering the Employee Ethics Hotline City Auditor, Jim Pelletier introduced the City Employee Fraud, Waste, or Abuse Hotline Administration Policy and asked the Policy and Services Committee to accept and recommend the policy to the full Council. He stated that the policy was developed to provide a framework for administering the hotline. The objective of the hotline is to add an anonymous route that employees can take to report problems within the City. Administration through a third party vendor will maintain anonymity. One of the key components is the establishment of the Hotline Review Committee (Committee) that is comprised of the City Auditor, the City Attorney, and the City Manager. The Committee will be responsible for reviewing every case that comes through the hotline. The vendor would provide a case management system to allow for real time monitoring and case tracking. The case escalation section described how immediate notification from the vendor would be possible in certain circumstances. Reporting should remain as limited as possible to support the integrity of the hotline by maintaining the anonymity and confidentiality to the extent required by law. The general type of reporting that would be disclosed in quarterly reports to Council include number of reports made, the Attachment C 06/12/2012 2 type of reports received, any trends in the types of complaints, and type of corrective action taken. State law addressed whistleblower protection as discussed in section eight. The recommended policy would be limited to fraud, waste, and abuse as defined by California law. Other types of calls outside these definitions may be received, reviewed by the Hotline Review Committee, and ultimately acted upon if necessary. Sections 10, 11, and 12 describe how Staff will maintain control of the information and documentation related to the hotline. The City would not tolerate malicious complaints and would investigate any such complaints. Council Member Espinosa asked if the policy addressed concerns that were raised by the City Manager’s Office during the preliminary discussions of how the hotline would function. City Manager, Jim Keene said yes. He said the City Attorney’s Office and City Auditor’s Office worked with the City Manager’s Office on the policy and the mechanics of it. No Staff had been added to manage this initiative. He said if any viable complaints were received through the hotline, then it would be successful. If Staff investigates many complaints with no merit then the process should be reviewed with Council. Council Member Espinosa asked what would happen if the hotline received more complaints than the Committee could handle in four months. Mr. Keene said the Committee would handle it. The Committee would work collaboratively to decide whether Council should be consulted for a resolution. Council Member Klein referred to section one of the policy. He was concerned about encouraging employees to report fraud, waste, or abuse to the City Auditor’s Office. He thought it would be out of the line of command. Mr. Pelletier replied that the goal was to provide an alternative reporting route in case Staff did not want to go through their chain of command. Employees would be encouraged to come forth and talk to someone before a situation was escalated. Council Member Klein said he would be troubled if there were many people that went to the City Auditor’s Office instead of their supervisor or the City Manager’s Office to report a complaint. Mr. Pelletier agreed. He said some employees may not feel comfortable going through the chain of command, or some might even feel like their job is at risk if they take that approach. Council Member Klein asked if there were other instances where the City Auditor’s Office would be used as an option for employees to report complaints. Attachment C 06/12/2012 3 Mr. Pelletier replied yes. He did not have specific data relating to other cities available. The process was meant to be another route for reporting beyond the chain of command if employees did not feel comfortable. Mr. Keene added that Staff worked hard to address concerns regarding roles. Mr. Pelletier stated that he understood Council Member Klein’s point. He said the intent as for Staff to go through the chain of command unless an employee did not feel comfortable with that route. At that point they could go to the City Auditor’s Office as an alternative route – just like the hotline was intended as an alternative route. Ultimately everything went through the Hotline Review Committee for review and action. Mr. Keene said the point of establishing the hotline related to legislation that allowed the City Auditor’s Office to manage the hotline as well as maintain that independence from the rest of the organization. Council Member Klein said there were three alternatives: 1) leave the language as is and record the number of instances reported to the City Auditor, 2) eliminate the City Auditor’s Office from the chain of command, or 3) change the language so it said “…or the Office of the City Auditor, but only in extraordinary circumstances Mr. Keene responded that it would be clearer if to remove the language. City Attorney, Molly Stump said the language provided another forum for employees to report complaints without anonymity. The language could be edited so that if employees would like to access the hotline process through the City Auditor’s Office, but don’t feel the need for anonymity, they could do so. Council Member Klein said that would make for more significant re-writing of the policy. Ms. Stump said the City Auditor could take direction from the Policy and Services Committee and handle that clerically. Council Member Klein referred to the last paragraph of the policy. He asked how the Committee would be able to investigate a malicious complaint if the person remained anonymous. Mr. Pelletier responded that in some cases they may not be able to. Council Member Klein indicated that the very act of an investigation potentially harms whoever is being complained about. He asked how the City would handle a Staff Attachment C 06/12/2012 4 Member who filed a malicious complaint if there is no way to find out who filed it. He said this language may even discourage someone from reporting a complaint. Ms. Stump said at some point in a substantial investigation information would be revealed. Someone might come forward to divulge more pertinent information. This proposed language was a strong statement against malicious complaints. Council Member Klein said another sentence should be added that addressed malicious complaints. The City would not break the wall of anonymity, but evidence could be developed from other sources as to who the complainant is. Mr. Keene said he understood the intent, but it sounded as if the anonymity piece could not be full proof. The reaction was to think there were other ways to discover the identity of a complainant. Ms. Stump said it would be a very rare circumstance where city leaders would feel it would be appropriate to launch an investigation as to who made a complaint. Mr. Keene said there could be more meaningful conversation if malicious complaints were received. People’s reputations could be easily damaged, and that must be respected. Mr. Pelletier agreed. He stated that was a risk of having an anonymous hotline. The opposing risk was a fraudulent or abusive act that was untouched because an employee did not have an anonymous way to report a complaint. It was a matter of weighing those risks against one another and the larger risk was missing a potential fraud that could go unnoticed for years and snowball into something unmanageable. Council Member Schmid asked about the timeline to start fielding complaints. Mr. Pelletier responded that the hotline could be launched once the full Council approved this policy. Council Member Schmid referred to section two. He asked if interviewers who field hotline complaints question other City Staff for more information. Mr. Pelletier answered no. He said a caller would give a case number and asked to follow up a certain amount of days later. Follow up questions would be input into the case management system so when the caller called back, the interviewer could ask those questions. Council Member Schmid confirmed the goal of the hotline was for the use of City Staff only. He asked how they would know if the person calling was in fact a city employee. Attachment C 06/12/2012 5 Mr. Pelletier replied that that was a limitation of an anonymous system. There would be no method to confirm that the caller was truly an employee. Council Member Schmid confirmed that quarterly reports would be presented as Informational Items to the Council with a listing of each type of report during that period. He said, referring to a clause in section eight of the policy: “This Prohibition against Retaliation is a statement of City policy. It is not intended to and shall not create a private right of action…” He asked if “It” referred to City policy or Prohibition against Retaliation. Ms. Stump responded that Prohibition against Retaliation was not intended to create a basis for suing the City. This language allowed the City to avoid that possibility. Council Member Schmid referred to section nine. He asked what “Conversion” meant under Terms and Definitions. Ms. Stump replied that the definition was taken directly from State law. Council Member Schmid referring to section nine asked if being “Economically wasteful” was illegal. Ms. Stump said California law defined fraud, waste, and abuse in exactly those terms. The idea was to give employees guidance as to what the program was intended to include and not include. Council Member Schmid referred to section ten, bullet three. He asked if the confidentiality held in a criminal act. Ms. Stump said if there was criminal prosecution involved, certain parts of the report could become public. There would be a variety of roles that govern the outcome. Council Member Schmid referring to section ten, bullet five, asked if the report would become public through the Public Records Act. Ms. Stump replied that it would depend on the nature of the records, what records were being sought, and the status of the item. Council Member Schmid referred to section twelve: “All requests for information concerning any Incident Report shall be directed to the City Auditor for a response.” He asked for clarification on this statement. Mr. Pelletier said ultimately all decisions would be made by the Hotline Review Attachment C 06/12/2012 6 Committee. The City Auditor’s Office held an administrative role in that regard. Mr. Keene said this was designed to refer repeatedly so that it was clear that the manager of the hotline was the City Auditor. Council Member Klein asked about harassment. He thought it was covered under the hotline but did not see anything mentioned in the policy. Ms. Stump said harassment would fall under “gross misconduct”. Council Member Klein asked what the City’s policy is regarding harassment. Mr. Pelletier responded there could be no control over the type of calls that might come in. If the Hotline Review Committee decided not to review an item, they could forward it on to the appropriate department/person. Council Member Klein said most harassment claims will not be anonymous. He asked if they thought it would be good to include language stating harassment was covered. Ms. Stump replied the Hotline Review Committee would work that out over time. As items were reviewed they may recommend language changes to the policy. Mr. Keene stated he did not like the anonymity issue. There was as much risk for mischief as there was for catching the embezzler. He said he also had concerns with the definitions of fraud, waste, and abuse. He said a complaint would be more powerful if it was not anonymous. If many complaints were filed by people fearful of retaliation, an organizational/cultural issue would be apparent. Chair Holman said she was glad this was moving forward. She asked if harassment and discrimination should be added to the policy. She said the purpose of this needed to be clear to the employee. She did not know if “gross misconduct” would be interpreted by everyone as harassment or discrimination. Ms. Stump said one practice when managing a diverse group of employees regarding harassment and discrimination was to provide multiple avenues for people to come forward when they had a complaint. If there was an issue, the City wanted to know about it as soon as possible. Either way, it would sort its way out. The City had other policies to report cases like this. Chair Holman stated the feeling of anonymity did not seem to apply to harassment or discrimination. Mr. Keene said other channels existed for employees to remain anonymous aside from Attachment C 06/12/2012 7 the hotline. Mr. Pelletier said there was a limitation to the hotline. The law provided the authorization for the City Auditor’s Office to have a hotline for fraud, waste, and abuse. The recommendation was to limit this policy to that definition of fraud, waste, and abuse. Chair Holman referred to section one: “City employees who have specific information that other City employees have engaged in fraud, waste, or abuse are encouraged to report such information to their immediate supervisor, manager, department head, Human Resources, the City Manager’s Office (CMO), or the Office of the City Auditor (OCA).” She asked if “obligation” or “responsibility” would be better language than “encouraged”. Mr. Pelletier said they could consider that change, but the reason anonymity was established was to give Staff who did not feel comfortable another mechanism to report complaints. He did not want to discourage that. The City should provide training to Staff encouraging them to follow the chain of command, but if all else fails, the hotline is there for employees to report complaints. Chair Holman raised the possibility of people feeling pressured if “encouraged” was replaced with “obligation or “responsibility”. She asked about Staff training and launch information. Mr. Pelletier responded that the Hotline Review Committee would determine these details. Council Member Schmid asked if the script that the vendor would use would encourage Staff to attempt other means before contacting the hotline. Mr. Pelletier said that was a great idea. He said the script was customizable and it could be written to encourage employees to follow the normal processes before making a complaint through the hotline. Chair Holman asked about the Hotline Review Committee and whether complaints would be forwarded to the appropriate department or unit. Mr. Pelletier said the purpose of the Hotline Review Committee was to determine who should follow up. Ms. Stump added that should be the City Manager’s decision. Mr. Keene said instituting an anonymous hotline is one of a hundred streams of Attachment C 06/12/2012 8 communication in an organization. Ms. Stump said in terms of deciding where the best place to investigate it was, most of the investigative ability is in the City Manger’s realm. Mr. Keene would consult with the other two members of the Hotline Review Committee, but ultimately would be his decision. Chair Holman said other people will be involved in the investigative review process. However, she did not see anywhere in the policy where confidentiality applied to the others that will be involved in the process. Ms. Stump that goes to a level not described in this policy regarding what makes good investigative practice. It is already an established item within Human Resources and management. There are limits to promising people confidentiality and that is not a good practice to do so sometimes. It is important not to mislead people about that. Mr. Pelletier said Chair Holman’s concern was covered in section ten, bullet two: “Incident Reports and associated case numbers shall only be provided to individuals who are responsible and essential for conducting the investigation or reviewing of the Incident Report. These individuals are required to hold such information in confidence, to the extent allowed by law.” Chair Holman said she is concerned with people verbally disclosing information. Mr. Keene said this is one piece of an entire organization. We have many mechanisms for reporting. Chair Holman said she understood that, but she wanted to be as clear as possible. She asked what could be added to the policy that might help a department head investigate a matter that had to do with a Human Resources issue for example. Mr. Keene said this is a policy to administer and receive complaints. It is not a set up for discipline and investigative procedures. Mr. Pelletier agreed and added Staff wanted to make sure to draw the line between the policy approved by Council versus general policies and procedures. Chair Holman said it would make her feel comfortable if the Human Resources policy was referenced. MOTION: Council Member Klein moved, seconded by Council Member Espinosa that the Policy and Services Committee accept and recommend the policy to the full Council, with the change to the language in section one stating that employees can approach the City Auditor directly with any non-anonymous complaints. Attachment C 06/12/2012 9 Council Member Klein said he was more concerned. If this was to work properly, it should be used very rarely. He would be very disappointed if the City had even a handful of complaints over the course of a year. He is reasonably satisfied with the language. Council Member Espinosa clarified that Mr. Pelletier should reword section one to clarify chain of command issues. He also confirmed that the Hotline Review Committee will consider clarification of malicious complaints, harassment, and discrimination. This would become a policy, not an addition to the Motion. Council Member Schmid said he supported the Motion. He said it was clear that the City Auditor, City Attorney, and City Manager had given this much consideration and he had confidence in the Hotline Review Committee. He recognized the heavy responsibility that fell upon the Committee Members. Chair Holman said she is glad this is coming together with everyone on the same page. She agreed that this tool should be rarely used if handled properly. MOTION PASSED 4-0. Attachment C City of Palo Alto (ID # 3028) City Council Staff Report Report Type: Action ItemsMeeting Date: 7/23/2012 Summary Title: Adoption of MOA for Classified Employees – SEIU Title: Adoption of Resolution Amending Section 1401 of the Merit System Rules and Regulations to Adopt a New Memorandum of Agreement with Service Employees' International Union Local 521 From: City Manager Lead Department: Human Resources Recommendation Staff recommends that Council approve the attached resolution amending Section 1401 of the Merit System Rules and Regulations to adopt a new Memorandum of Agreement (MOA) between the City of Palo Alto and Service Employees’ International Union (SEIU), Local 521 effective July 1, 2012 through December 1, 2013. Background This unit has 580 budgeted full-time positions. Employees in this unit are located throughout the City and perform important functions to support all major City services, including classifications of Utility Lineperson, Librarian, Heavy Equipment Operator, Public Safety Dispatcher, and Building Inspector as a few examples. Employees in SEIU were among the first to make significant concessions in fiscal year (FY) 2010. This unit has had two (2) one-year contracts since that time. The current contract expired June 30, 2012. The parties met formally 14 times since March 2012 and reached a tentative agreement on July 5, 2012. The Union voted to ratify the tentative agreement on July 17, 2012. Staff commends SEIU and their bargaining team for their focus and efforts in reaching an agreement on a successor Memorandum of Agreement with additional structural changes to employee compensation as the City continues to face budgetary challenges in this challenging economic environment. The tentative agreement provides for a 17-month term from July 1, 2012 through December 1, 2013. Discussion The City has experienced significant growth in the costs of medical and pension benefit plans. In fact, medical costs have more than doubled and pension costs have tripled in the last decade. The rate of growth in costs for these two benefit plans has far exceeded the growth of revenues. The City cannot continue to absorb all increases in future years and has been negotiating with all bargaining units since 2009 to make permanent, on-going structural change to put in place cost sharing programs instituting employee contributions to medical and pension plans. This contract makes progress toward meeting the City’s goals in both areas. Medical Employees in the SEIU unit and the unrepresented Management/Professional Unit began paying toward medical premiums in April 2011. The City and employees split the increase in premiums each year with a maximum of five percent (5%) increase per year. Using that formula, and given the relatively tame premium increases in the last two (2) years, the current employee contribution is approximately six percent (6%) of total medical premium costs. The City has recently concluded negotiations with fire and police union employees resulting in an active employee contribution of 10% of medical premiums. One of the City’s bargaining objectives with SEIU was to move the SEIU employee contribution to 10% of medical premiums to provide equity amongst all employee units and simplicity in administering one contribution amount for all City employees. With this contract, SEIU employees will begin paying the full 10% employee contribution for health care on October 6, 2012. Employees in this unit are also eligible for a cash incentive if the employee elects medical coverage from a partner or spouse and waives participation in the City’s medical plan. Approximately 60 employees currently receive this cash out benefit. A review of the 12 survey cities indicates that nine cities provide a similar benefit at an average offering of $274 per month. The City’s current program allows for up to $820 per month. The City and SEIU have agreed to reduce this amount to $284 per month. Pension The City participates in CalPERS pension plans which are funded by an Employer and an Employee contribution. The City previously adopted a second pension tier for employees hired after July 17, 2012. The Employee Contribution is a fixed amount of 7-8% of salary, depending on the pension tier in which the employee is enrolled. Since 2009, the employees in this unit have paid 5.75% of the employee share, or almost ¾ of the Employee Contribution, and those in the 2nd tier pay 5%. The City and SEIU have agreed that all employees will pay the full amount of the Employee Contribution effective with the first pay period including July 1, 2012. This change is consistent with the recent agreements with the fire and police unions that put in place employee payment of the full Employee Contribution. In this successor MOA, SEIU also agrees to make one other change to the second tier pension plan. Currently the City’s contract with CalPERS for miscellaneous employees provides for the “single highest year” benefit, which bases the final salary used to calculate the employee’s pension on the highest 12 months of salary. The parties agree to amend the CalPERS contract to provide the highest three years for final salary calculation for pension for new employees. Pursuant to CalPERS rules, the earliest the contract can be amended is August 2013 and the provision may only apply to employees newly hired on or after the effective date of that amendment. Other Changes The City offered a cost-of-living increase for all employees in this unit of 1.65% to offset the impact of the additional PERS employee contribution. The City and SEIU have also agreed to a reduction in the three (3) Floating Holidays. Currently SEIU is the only unit to receive floating holidays, which may be used as paid time off, or if not used, accrued to the employee’s vacation bank. Effective this fiscal year unused floating holidays will be lost if not used by June 30th. Additionally, one floating holiday will be eliminated after June 30, 2013. The probationary period for newly hired employees is currently six months, which will increase to 12 months upon adoption of this agreement. The longer probationary period will provide additional time for supervisors and managers to assess the performance, fit and technical abilities of new hires. During the course of negotiations the parties engaged in lengthy discussions about concerns with retention of personnel in specific classifications. Staff reviewed turnover data going back to 2004, which identified some areas in the organization that face operational challenges because of turnover experience. As a result the parties have agreed to a few special adjustments to base salary where the City agreed that such adjustments were beneficial to aid in retaining employees in key areas such as public safety dispatcher and utility lineperson. Additionally, the City identified a few limited areas in which the City makes significant investments in training of new employees in highly technical fields. The parties agreed to a requirement that employees in two (2) classifications who benefit from very expensive specialized training agree to stay in their positions for at least three years after receipt of the training or pay back a pro-rated portion of the City’s training costs. The intent is to educate employees about the considerable investment made in them by the City and create an incentive for them to stay, apply and share their knowledge with other employees. The salary schedule in Attachment A incorporates the classification of Overhead/Underground Troubleman which was authorized in the FY 2013 adopted budget. The Utilities Department dropped 2 positions (1 Electrical Assistant I and 1 Heavy Equipment Operator) in exchange for adding 2 Overhead/Underground Troubleman positions based on operational need. There is no change to the FTE count. Resource Impact Item Citywide Annualized FY 2013 Savings (Cost) 1. Increase employee-paid PERS contribution to full amount of employee share: $877,582 2. Provide a COLA of 1.65%, to offset the additional PERS contribution. ($877,656) Net ($74) 3. Increase employee share of medical costs to 10% effective October 1 $ 72,790 4. Decrease Alternative Medical Cash-Out benefit to a flat $284 per month, regardless of plan, effective October 1  Assumes there is no change in the number of people waiving coverage $207,322 5. Floating holidays changes $482,814* TOTAL SAVINGS TO CITY $762,853 SAVINGS AS PERCENTAGE OF TOTAL COMP. 1.06% 6. Retention incentives for critical positions ($217,284) NET TOTAL SAVINGS $545,569 SAVINGS AS PERCENTAGE OF TOTAL COMP. 0.76% 6. Change final salary calculation for pension from the single $52,594 highest year to average of 3 years  Savings would not start until FY 2015  Savings shown are average annual savings from 2015- 2017 (first 3 FY) *Does not reflect productivity savings Policy Implications This recommendation is consistent with City Council direction to achieve structural changes in employee compensation for short-term and long-term savings. Environmental Review This is not a project under the California Environmental Quality Act (CEQA). Attachments:  : Reso Amending Section 1401 Merit Rules (PDF)  : SEIU MOA 2012 (PDF)  : SEIU Salary Schedule 2012 (PDF)  : Redline SEIU MOA 2012 (PDF)  : 2009 SEIU Salary Sheet (PDF) Prepared By: Elizabeth Egli, Administrative Assistant Department Head: Kathryn Shen, Director, Human Resources City Manager Approval: ____________________________________ James Keene, City Manager City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 1 of 62 2012-2013 MEMORANDUM OF AGREEMENT City of Palo Alto and Local 521, SEIU, CTW PREAMBLE – This Memorandum of Agreement (hereinafter “MOA” is entered into by the City of Palo Alto (hereinafter referred to as the “City”) and Local 521 Service Employees International Union, CTW (hereinafter referred to as the “Union”). For the purposes of this MOA “employee” shall mean an employee assigned to a classification within the SEIU General Employee bargaining unit. This MOA is pursuant and subject to Sections 3500-3510 of the Government Code of the State of California and Chapter 12 of the City of Palo Alto Merit Rules and Regulations. ARTICLE I – RECOGNITION Section 1 - Recognition. Pursuant to Sections 3500 - 3510 of the Government Code of the State of California and Chapter 12 of the City of Palo Alto Merit System Rules and Regulations, the City recognizes the Union as the exclusive representative of a representation unit consisting of all regular full and part-time employees in the classifications listed in Appendix A attached hereto. This unit, shall for purposes of identification, be titled the SEIU General Employees bargaining unit (hereinafter “General Unit”). Section 2 - Protection of Unit. No supervisor will perform the work of an employee in the General Unit provided that there is an employee available who regularly performs such work. This does not preclude a supervisor from performing work of a minor nature or during bona fide emergencies or on a standby status when willing and qualified unit employees do not live within a reasonable response time of their work location. Supervisory personnel shall be called out to perform unscheduled work only when SEIU General unit employees are unavailable to perform such work or in cases of bona fide emergencies as defined in Article VIII, Section 2. In cases of bona fide emergencies, SEIU General Unit employees shall be called out to complete the necessary work after the immediate emergency situation has been reasonably contained. ARTICLE II - NO DISCRIMINATION Section 1 - Discrimination. The City and Union agree that no person employed by or applying for employment hereto shall be discriminated against because of race, religion, creed, political affiliation, color, national origin, ancestry, union activity, age, disability, sexual orientation, or gender. Section 2 - Right to Join the Union. The City and the Union agree to protect the rights of all employees to exercise their free choice to join the Union and to abide by the express provisions of applicable State and local laws. City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 2 of 62 ARTICLE III - UNION SECURITY Section 1 - Notice. When a person is hired in any of the covered job classifications, the City shall notify that person that the Union is the recognized bargaining representative for the employee and give the employee a current copy of the Memorandum of Agreement. When a group employee orientation is held for new employees of the bargaining unit, a union representative may make a presentation to such bargaining unit employees for the purpose of explaining matters of representation. The presentation shall not exceed 15 minutes. Section 2 - Agency Shop. a) Every employee in the bargaining unit covered by this Memorandum of Agreement shall: 1) remain a member in good standing of the Union; or 2) pay to the Union a monthly service fee, to be set by the union in accordance with applicable law, in an amount not to exceed the standard initiation fee, periodic dues, and general assessments of the organization; or, 3) in the case of an employee who certifies that he/she is a member of a recognized religion, body or sect which has historically held conscientious objection to joining or financially supporting public employee organizations, pay a charity fee, equal to the service fee, to a non-religious, non-labor charitable fund exempt from taxation under Section 501 (c)(3) of the Internal Revenue Code, chosen from one of the following three charitable organizations agreed to by the City and the Union (or any successor organization(s) agreed to by the City and the Union): United Way of California Community Health Charities Environmental Federation of California Union members may declare their intention to terminate Union membership by registered letter, return receipt requested, to the Director of Human Resources and the Union only during the 30-day period between 60 and 90 days before expiration of the MOA. b) Employees who are newly hired into or who join the bargaining unit shall elect one of the above payment deduction options by completing and submitting the Employee Election form within thirty (30) calendar days of being hired into a classification covered by this MOA. c) To qualify for deduction of the Charity Fee, the employee must certify to the Union and City that he/she is a member of a bona fide religious body or sect that has City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 3 of 62 historically held conscientious objection to joining or financially supporting public employee organizations. The employee is required to submit to the City and the Union a notarized letter signed by an official of the bona fide religion, body, or sect certifying that person’s membership. Upon request, the City shall provide to the Union a report of payments made by employees that qualify for the Charity Fee option in this subsection. d) The deductions in this Section shall not apply during any period where an employee is in an unpaid status. e) Involuntary Service Fee Deduction Process: The City shall deduct a service fee from the salary of each bargaining unit member who has not authorized a dues deduction, service fee deduction or charity fee in writing within the time stated in this Section, above. The Union certifies that it has consulted with knowledgeable legal counsel and has thereby determined that this involuntary service fee deduction process satisfies all constitutional and statutory requirements. f) Agency shop may be rescinded only in accordance with the provision of state law. g) Indemnification, Defense and Hold Harmless: Union agrees to indemnify and hold harmless the City and all officials, employees, and agents acting on its behalf, from any and all claims, actions, damages, costs, or expenses including all attorney’s fees and costs of defense in actions against the City, its officials, employees or agents as a result of actions taken or not taken by the City pursuant to the Agency Shop Arrangement. h) Sign-up forms for deduction of union dues, service fees and charity fees shall be provided by the Union and approved by the City. Section 3 - Documentation. The City shall supply the Union with: a) a monthly electronic file of the names, member/fee payer designation, addresses, classifications, monthly base pay, pay period number, Committee on Political Education (COPE) listed separately and last four digits of the Social Security number of all bargaining unit employees except those who file written notice with the Human Resources Department objecting to release of addresses, in which case information will be transmitted without address; and b) a list of bargaining unit new hires, terminations and retirements which occurred during the previous month. The Union shall supply the City, and as applicable, the employees, with documentation required by Government Code Section 3502.5 (f). City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 4 of 62 Section 4 - Payroll Deduction. The City shall deduct Union membership dues, service fees, charity fees, and any other mutually agreed upon payroll deduction, which may include voluntary COPE check-off, from the bi-weekly pay of bargaining unit employees. The dues/fees deduction must be authorized in writing by the employee on an authorization form acceptable to the City and the Union, except as provided in Section 2(e), above. The dues deduction form shall include a check box for those employees who wish the Union to receive notification in the event of unsatisfactory work, conduct, or disciplinary action taken pursuant to Article XX. City shall remit the deducted dues or fees to the Union as soon as possible after deduction. Section 5 - Bulletin Boards and Departmental Mail. The Union shall have access to inter- office mail, existing bulletin boards in unit employee work areas, and existing Union-paid telephone answering device for the purpose of posting, transmitting, or distributing notice or announcements including notices of social events, recreational events, Union membership meetings, results of elections and reports of minutes of Union meetings. Any other material must have prior approval of the Human Resources Office. Action on approval will be taken within 24 hours of submission. The Union may send email messages only for the purposes set forth above. The IT Department will maintain the SEIU list and keep it current. The Union access to email is based on the following conditions: 1) emails to the SEIU list will be copied to the Human Resource Director at distribution; 2) emails to the SEIU list will only be sent by the SEIU Chapter Chair, Vice Chair, Chief Steward (s) or Secretary, 3) a maximum of 52 emails may be sent per year and a maximum of 12 emails may be sent by the SEIU Chapter Secretary. Section 6 - Access to Union Representatives. Representatives of the Union are authorized access to City work locations for the purpose of conducting business within the scope of representation, provided that no disruption of work is involved and the business transacted is other than recruiting of members or collecting of dues, and the representative must notify the Human Resources Department Office prior to entering the work location. Section 7 - Meeting Places. The Union shall have the right to reserve City meeting and conference rooms for use during lunch periods or other non-working hours. Such meeting places will be made available in conformity with City's regulations and subject to the limitations of prior commitment. Section 8 - Notification to the Union. a) General. The Union shall be informed in advance in writing by Management before any proposed changes not covered by this Memorandum of Agreement are made in benefits, working conditions, or other terms and conditions of employment which require meet and confer or meet and consult process. b) Change in City’s Financial Situation. Should the City’s financial situation deteriorate and the possibility of layoffs result, the City Manager will give prior City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 5 of 62 notice to and consult with the Union prior to recommending any layoffs to the City Council. c) Vacancies and Temporary Personnel. The City agrees to notify SEIU Local 521 in writing when any irregular, temporary, hourly, provisional, special or extra help employee who consistently performs work typical of the SEIU Local 521 bargaining unit exceeds 1,000 hours of work within a 18-month period. The City agrees to notify SEIU Local 521 in writing when any position covered by this agreement is left vacant for more than 60 days. Through a separate meet and confer process, the City and Union will develop a way to convert long term, ongoing temporary-hourly positions to regular status. The City and Union will meet and confer regarding wages, benefits and terms and conditions of work. Section 9 - Union Logo. All materials and documents produced on Itek and metal plates, by the City print and reproduction shop, shall carry the Union label on the inside of covers or title pages in accordance with customary printing trades practices. Section 10 - Public Notice. The City shall make available to the Union, in a timely manner, copies of all City Council meeting agendas, minutes and schedule of meetings. These materials may be picked up at the City Clerk's Office during business hours. Section 11 - Use of Agency Reports. Upon request, the City shall provide to the Union reports by department on the use of agency temporaries filling representation unit vacant positions, or doing work similar to that of representation unit classifications. Section 12 - Job Postings. The City shall incorporate the requirements of this Article when publicizing job announcements for classifications covered by this Memorandum of Agreement. Section 13 - Contracting Out. The City through the labor management process will kept the Union advised of the status of the budget process, including any formal budget proposal involving the contracting out of SEIU bargaining unit work traditionally performed by bargaining unit members at least thirty (30) days prior to the release of the City Manager’s proposed budget. The City will notify the Union in writing at least ninety (90) days prior to contracting work which has been traditionally performed by bargaining unit members, where such contracting will result in layoff or permanent reduction in hours. Within the ninety (90) day period of contracting out, both parties may offer alternatives to contracting out and meet and confer on the impact of such contracting out of a bargaining unit employee work. The City will notify the Union in writing when contracting out work which has been traditionally performed by bargaining unit workers, where such contracting out is expected to replace a laid off bargaining unit position that has been eliminated within ninety (90) days prior to the date of the planned contract work. When feasible, the City will provide such notice prior to the beginning date of the planned contract work. The City will meet with the Union upon request to discuss alternatives. This provision does not apply to the filling of temporary vacancies of twelve (12) months or less duration. The City will provide the Union with a biannual City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 6 of 62 list by department of all contract workers or vendors who are contracted by the City who perform work for the City. The City will make a reasonable effort to identify the names of the vendors on the list and the nature of the work provided by each vendor. ARTICLE IV - STEWARDS Section 1 - Union Officers. The Union agrees to notify the Director of Human Resources of those individuals designated as Union officers and stewards who receive and investigate grievances and represent employees before Management. Alternates may be designated to perform steward functions during the absences or unavailability of the steward. Section 2 - Number of Stewards. The number of stewards designated by the Union at a given time shall not exceed thirty-five (35). Section 3 - Release Time. It is agreed that, as long as there is prior notice as specified below to the Supervisor with no disruption of work, stewards shall be allowed reasonable release time away from their work duties, without loss of pay, to represent a unit employee or employees on grievances or matters within the scope of representation, including: a) A meeting of the steward and an employee, or employees of that unit related to a grievance. b) A meeting with Management. c) Investigation and preparation of grievances. Grievances may be transmitted on City time. All steward release time shall be reported on time cards. Section 4 - Advance Notification Before Leaving Work Location. The Union agrees that the steward shall give no less than one (1) full business day advance notification to his/her supervisor before leaving the work location, except in those cases involving an unforeseeable circumstance that requires immediate union representation where advance notice cannot be given or when the relevant supervisor otherwise allows less notice. A supervisor may deny such a request for release from duty if the steward is needed to ensure real time delivery of services that the steward provides for the public or internal City customers and another employee who normally provides such services is not available on a straight time basis to relieve the steward, or in a bona fide emergency. If such denial occurs, the union may request the release of another of its designated stewards to perform the representation duties involved. Such request shall be processed in accordance with the terms set forth in this section except that the requirement for a full business day advance notice to the replacement representative’s supervisor shall not apply. Nothing herein shall preclude the City from rescheduling a meeting it has scheduled, to facilitate the attendance of a steward who has requested release if, in the City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 7 of 62 City’s judgment, such change can be undertaken without undermining the objectives of the meeting. Section 5 – Release Time. Three Union officers, who are City employees, shall be allowed a reasonable amount of release time off for purposes of meeting and conferring or meeting and consulting on matters within the scope of representation. All such time will be reported on timecards. Section 6 - Designated Union Space. Union stewards may utilize space in assigned desks for storage of Union materials. In the event stewards are not assigned desks the City will provide locker or other mutually agreeable space for storage of Union materials. Section 7- Union Officers and Release Time. Six union officers, who are City employees shall be allowed a reasonable amount of release time off for monthly Labor/Management Meetings. ARTICLE V - REDUCTION IN FORCE Section 1- Attrition. In the event of reductions in force, they shall be accomplished wherever possible through attrition. Section 2 - Advance Notice. When the City determines that layoffs are imminent resulting from reduction in force within the representation unit, the City will give the Union such advance notice as is reasonable under the circumstances. The notice will indicate the departments and divisions which will be affected and the circumstances requiring the layoffs. The City will furnish the Union with a current representation unit seniority list with notice of layoff. Section 3 - Order of Layoff. If the work force is reduced within a department, division, or office for reasons of change in duties or organization, abolition of position, shortage of work or funds, or completion of work, employees with the shortest length of service will be laid off first so long as employees retained are fully qualified, trained, and capable of performing remaining work. Length of service for the purpose of this article will be based on current service hire date of record in a regular classification with no adjustment for leaves of absence. Length of service ties will be determined by lot in a method agreeable to both parties. Employees laid off due to the above reasons will be given written notice at least thirty days prior to the reduction in force. A copy of such notice will be given to the Union. Such employees shall be offered priority employment rights to regular positions which are requisitioned and for which the employees are qualified for a period beginning with notification and ending sixty (60) days following the reduction in force. Employees transferred or reclassified under this section will be assigned to the step in the new classification salary range closest to the employee's salary range at the time of reclassification. Employees laid off pursuant to this section shall receive the balance of all regular City compensation owed and severance pay equal to one month’s salary at the employee’s final rate of pay at termination. This does not include any amounts payable under Article V, Section 6, or PERS contribution refunds, if any. City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 8 of 62 Section 4 - Seniority/Bumping Rights. Employees identified for layoff who have seniority (bumping) rights to their current or previously held classifications within the representation unit must declare their intention to exercise these rights in writing and submit to the Human Resources Department within seven (7) working days after written notification of layoff, otherwise bumping rights will automatically terminate. Bumping may occur within the representation unit, only to the least senior incumbent of the current or a previously held classification. To bump, the employee must be fully qualified, trained, and perform all work in the position. For purposes of this section of the Agreement, the term "working days" shall mean Mondays through Fridays, exclusive of holidays. Section 5 - Re-Employment List. The names of employees laid off or who through bumping changed classification in accordance with the provisions of this Article shall be entered upon a re-employment list in seniority order. The employee with the greatest seniority on the re-employment list, including those who exercised their bumping rights, shall be offered reinstatement first. Such notice of reinstatement shall be in writing with a copy to the employee, Union and Chapter Chair. If a laid off employee waives reinstatement or fails to respond within ten (10) working days of receipt of the notice, the employee shall be removed from the reemployment list. The person with the highest seniority including those who exercised their bumping rights on a re-employment list for a particular classification when a vacancy exists in that classification shall be offered the appointment. Names shall be carried on a re-employment list for a period of two (2) years from the date of separation from City services or change of classification through bumping. Upon re-employment within the two-year period, the employee's hire date of record at the time of layoff will be reinstated. Section 6 -Sick Leave Balances. Employees laid off pursuant to Section 2 who are reinstated to a regular position within sixty (60) days shall retain the sick leave balance they had at the time of layoff, unless they have received a sick leave payoff in accordance with Article XII. Section 7 - Hourly Employees Performing Duties. No representation unit employee will be laid off or remain on a re-employment list when hourly employees are performing substantially all the duties of the classification of the employee receiving a layoff notice or on a re-employment list. This provision shall not be applied to hourly positions which have been traditionally used for seasonal and part-time work. ARTICLE VI - PERSONNEL ACTIONS Section 1 - Probation. Each new regular or part-time employee shall serve a probationary period of twelve (12) months, commencing with the first day of his/her employment. The probationary period shall be regarded as a part of the testing process and shall be utilized for closely observing the employee's work, for securing the effective adjustment of a new employee to his/her position, and for rejecting any probationary employee whose performance does not meet the acceptable standards of work. At least one written City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 9 of 62 performance appraisal will be given each probationary employee on or before expiration of the probationary period. Normally, this appraisal will be given at the end of the third month. In the event of termination prior to successful completion of the probationary period, such terminated employee shall be given written notice of his/her termination with the reasons for the termination stated therein. The Human Resources Department shall, upon request, afford an interview in a timely fashion to the terminated employee for discussion of the reasons for termination. The employee may, upon request, be accompanied by a Union representative. The interview shall not be deemed a hearing nor shall it obligate the City to reconsider or alter the termination action. The parties agree that probationary employees shall have all rights under this Memorandum of Agreement, including full and complete access to the grievance procedure, save and except for instances of suspension, demotion or termination. Section 2 - Personnel Evaluations. Personnel evaluations will be given to employees as scheduled by Management. Personnel evaluations are not appealable through the grievance procedure but, in the event of disagreement over content, the employee may request a review of the evaluation with the next higher level of Management, in consultation with the Human Resources Department. For purposes of this review, the employee may be represented by the Union. Decisions regarding evaluation appeal shall be made in writing within ten (10) working days following the review meeting. Section 3 - Personnel Files. Records of all disciplinary actions shall be kept in the central personnel file. Employees shall be entitled to sign and date all action forms in their personnel files. Employees are entitled to review their personnel files upon written request or to authorize, in writing, review by their Union representatives. An employee or the Union shall be allowed, upon reasonable request, copies of materials in an employee's personnel file relating to a grievance. Records of disciplinary actions, including references in a performance evaluation, shall be removed from a personnel file upon written request by the employee or in the normal process of file review after a period of three years, or sooner as mutually agreed by Management and the employee. Section 4 - Release of Information. The City will only release information to creditors or other persons upon prior identification of the inquirer and acceptable reasons for the inquiry. Information then given from personnel files is limited to verification of employment, length of employment and verification and disclosure of salary range information. Release of more specific information may be authorized by the employee. Section 5 - Promotional Opportunities. a) Posting. Promotional opportunities for classifications within the representation unit will be posted for at least ten (10) working days (Monday through Friday) prior to selection. Outside recruitment may be used for promotional openings and may begin at the time of posting, or any time thereafter. If, however, there are three or more qualified internal candidates within the department where the vacancy occurs, and those candidates successfully complete the selection process, outside candidates will not be considered. City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 10 of 62 b) Internal Candidate Eligibility. All non-probationary representation unit employees are eligible to apply for posted promotional opportunities, except that Management may waive this requirement for all probationary employees within the department where the promotional opportunity occurs. c) Selection. The selection procedure for each promotional opening will be determined and administered by the Human Resources Department in consultation with the requisitioning department. Selection procedure and job description information will be available at the Human Resources Office at the time of posting. Efforts will be made to standardize tests and procedures where standardization is feasible and appropriate. Any tests used shall be reasonably predictive of success in the classification, and tests not be biased with respect to race, sex, sexual orientation, religion, creed, political affiliation, color, national origin, ancestry, or age. Selection procedures may include any or all of the following phases: 1) Application. Both inside and outside candidates must complete a City of Palo Alto application form specified by the Human Resources Department. Applications must be submitted to the Human Resources Office. 2) Screening. Applications will be screened by the Human Resources Department to ascertain whether candidates meet minimum requirements as outlined in the job description. Internal candidates deemed not to meet minimum requirements may submit additional qualification information writing within three working days of notification of requirement deficiency. 3) Performance Testing. Performance tests, such as typing, machinery or vehicle operation, skills demonstration, physical agility, etc., will be qualifying. Pass-fail points will be announced in advance for qualifying tests. If requested in writing prior to the test, performance test may be witnessed by Union steward. 4) Written Tests. Written achievement or aptitude tests will be qualifying. Pass- fail points will be announced in advance for qualifying tests. 5) Interviews, Appraisals. Interviews may be conducted individually or by interview boards and will be qualifying. Interview boards shall be composed of qualified and unbiased people. Where interview boards are used, Management will include at least one bargaining unit employee on each board. If individual interview or an interview board is used, a majority of the individuals or board members must recommend a candidate in order for the candidate to qualify for appointment. Performance appraisals written by candidates' supervisors may be used as indicated in the selection procedure. d) Recommended Candidates. Candidates who successfully complete all phases of the selection procedure will be recommended to the appointing authority. City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 11 of 62 e) Seniority. Seniority, for purposes of this Article, will be based on current service hire date of record in a regular classification with no adjustment for leaves of absence. Seniority ties will be determined in favor of the employee with the lowest employee number last four digits. Exceptions to this subsection may be established by mutual agreement on a departmental or divisional basis. Such exceptions are listed in Appendix G. f) Appointment. The appointing authority will make appointments from among those recommended candidates who are most qualified as determined by objective review of selection procedure results and background materials. Where appointments are made from only internal candidates who are equally qualified as determined by objective review of selection procedure results and past performance, seniority will be the determining factor in promotional appointments. g) Violations. Any violation of this Article may be appealed to the Human Resources Director in Step III of the grievance procedure. Section 6 - Rights. Unit employees applying for a vacant equal or lower paying position shall have the same rights as unit employees applying for a promotion. Section 7 - Apprentice Positions. (a) The City shall establish apprentice positions wherever feasible. Length of apprenticeship, type of training, and pay levels shall be by mutual agreement. Where possible, apprentice positions will underfill regular positions so that incumbents may automatically progress to the classification for which they are training upon successful completion of apprenticeship. The City will meet and confer with the Union before adding any new apprenticeship programs during the term of this agreement. All apprenticeship programs are listed in Appendix B. Section 8 - Rotation. In assigning employees to regular or special shifts, transfer, standby, overtime, or vacation selection, ability to perform the work, length of service and/or equitable rotation shall determine the assignments. In accordance with this provision, more definitive rules may be arranged by mutual agreement of the Union and individual City departments. ARTICLE VII - PAY RATES AND PRACTICES Section 1 - Salary. The base salary rates and ranges for job classifications covered by this bargaining unit are as set forth in Appendix A attached hereto. Said rates and ranges reflect an increase of one and sixty-five one-hundredths percent (1.65%) of June 30, 2012 base rates effective on the first day of the pay period including July 1, 2012 or on adoption of this MOA, whichever is later. Section 2 - Step Increases. Merit advancements from the first salary step to the second salary step shall be granted at six-month intervals and between second and subsequent steps at one-year intervals, if the City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 12 of 62 affected employee has demonstrated continued improvement and efficient and effective service. For the purpose of determining step time requirements, time will commence on the first day of the month coinciding with or following entrance onto a salary step. Step increases shall be effective on the first day of the payroll period in which the time requirements have been met. Section 3 - Working Out of Classification. The term "working out of classification" is defined as a Management authorized full-time assignment to a budgeted position on a temporary basis wherein all significant duties are performed by an individual holding a classification within a lower compensation range. Pay for working out of classification shall be as follows: a) Employees appointed to an "out of classification" will receive acting pay within the range of the higher classification beginning the first day of the assignment and shall be paid for all hours worked in the higher classification provided employee works a minimum of four (4) hours. Where out-of-class appointments last for more than 90 days, and whenever feasible, out-of-class appointment will be rotated among qualified interested employees in the work group. Employees will receive 5% premium pay for all assigned out of class pay for work within SEIU Classifications with the exception of lead assignments where the out of class pay will result in a 7% premium pay. Out-of-classification provisions do not apply to work assignments performed in connection with specific predetermined apprenticeship or training programs, or declared conditions of public peril and/or disaster. Section 4 - Classification Changes. a) During the course of this agreement, the Union and affected employees shall be notified in advance of any contemplated changes in classification description, wage range or steps. Such changes shall be subject to the meet and confer process. Such meet and confer process shall be concluded within no more than thirty (30) days following delivery of the City’s notice to the Union. If the Union and the City cannot reach agreement on the appropriate pay level from a job so reclassified, the Union may, within ten (10) City business days following the conclusion of the meet and confer process described above by delivery of written notice to the Human Resources Director, refer the dispute over the proposed wage range or steps to arbitration at Step IV of the Grievance Procedure set forth at Article XIX of this Memorandum of Agreement. Section 5 - Reclassification Requests. a) An employee or his/her representative may request in writing a re-evaluation of his/her job based on significant permanent changes in job content or significant discrepancies between job content and classification description. The request must be in writing, contain justification and may be made only on an annual basis during the period of September 10 through October 10. A statement by management that a job reevaluation request will be submitted with the departmental budget does not relieve City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 13 of 62 an employee from the responsibility of submitting his/her own request during this period. The Human Resources Director or his or her designee will initially respond to such requests within ninety (90) calendar days by notice to the employee and the union; however, this timeline may be extended if necessary. Such response shall include any reclassification to a different classification or changes in description that the City believes are warranted and any related changes in applicable pay range or steps. If meetings are held, the employee may request representation. If a reclassification is approved and results in an increase in salary, it shall be retroactive to the date the Employee or Union filed the request for the reclassification. b) If the employee or Union disagrees with the accuracy of the description of duties resulting from the study conducted pursuant to subsection (a) of this Section or with the wage range or steps assigned by the City as a result of the study, the employee or Union may, within ten (10) City business days of delivery of notice of such determination, appeal such decision under step IV of Article XIX, Grievance Procedure. c) In a dispute under Section 4(a) or section 5(b) above, the arbitrator shall render his or her decision on the appropriate wage range or steps within twenty-one (21) days after the initial hearing date. The same time line will be observed for disputes over the accuracy of the revised classification description. The parties will notify the arbitrator of this deadline at the time of the arbitrator’s selection. In reaching a decision on wage range and steps under Section 4(a) or 5(b) above, the arbitrator shall base his or her award on the factors traditionally taken into account in the establishment of compensation. When deciding a dispute over the accuracy of the revised classification description under section 5(b) above, the arbitrator shall identify the modifications of the pre-existing classification necessary to accurately reflect the permanent changes, if any, that have been implemented. Upon receipt of the arbitrator’s award, the City shall implement the revised classification and wage range or steps as provided in the award except as provided under subsection 5(c) of this section below. Not withstanding an arbitrator’s award pursuant to any appeal process, the City retains the right to forego implementing the changes and the proposed changes shall revert to the status quo as it existed before those changes in duties occurred or were proposed. d) An employee may submit a request for reclassification for the same classification no more than once every twenty-four (24) months. Section 6 - Advance of Vacation Pay. Vacation pay shall be made available in advance of regular payday, provided that employee requests such advance in writing to the Finance Department at least two weeks prior to his/her vacation date. The employee's supervisor must verify vacation date on the request. Section 7 - Assignment to a Lead Position. All vacancies in lead positions shall be filled in accordance with Article VI, Section 5. The pay range for the lead position shall be seven percent above the pay step of the highest paid employee on the crew. City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 14 of 62 Departmental exceptions for filling lead positions on a rotational basis for training and development purposes may be arranged by mutual agreement of the Union and individual City departments. Current exceptions are listed in Appendix C. Section 8 - Realignments and Survey Data Base. a) Management and the Union have agreed to a compensation survey data base structure which identifies specific benchmark classifications for job families, classifications within the job families of each benchmark classification, survey agencies and survey classification matches. Survey Cities include: Alameda Hayward San Mateo Berkeley Mountain View Santa Clara Daly City Redwood City S. San Francisco Fremont San Jose Sunnyvale If, in the opinion of the Human Resources Director (or designee), the employer list will not permit the production of a survey report that includes data from at least four (4) employers that employ employees in a classification comparable to the classification surveyed by the City, the Human Resources Director (or designee) will attempt to identify the other employers in the relevant recruitment area that employ workers in a comparable classification so that data from at least five (5) surveyed employers will be included in the study, if feasible. Such employer may include any public or private employer. The database is intended to provide one source of information concerning how the compensation paid to employees in bargaining unit job classifications compares to that paid by other employers. The City will update the survey database and send the Union a copy six weeks before expiration of this agreement. This survey will be considered in connection with special adjustment proposals in successor agreement negotiations. By agreeing to a survey database, neither Union nor Management is under obligation to propose or agree to special adjustments. ARTICLE VIII - HOURS OF WORK, OVERTIME, PREMIUM PAY Section 1 - Work Week and Work Day. The standard workday for regular employees shall be eight hours to be worked within a maximum of nine hours (five-day work week) or ten hours to be worked within a maximum of eleven (four-day work week) or nine hours to be worked within a maximum of ten for four days with a fifth day of four hours (four and one-half day work week); or, within a fourteen-day period, nine hours to be worked within a maximum of ten hours for one day and eight hours to be worked within a maximum of ten hours for one day, with the work week scheduled to begin so that forty hours are worked within each seven days of the fourteen-day period (9/80 plan, with forty-hour work weeks), or any other schedule that results in a 40-hour work week, or fits within the parameters of an FLSA 2080 Plan. The "9/80 plan" may not be used in any application that requires entitlement to FLSA overtime for working the regular work City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 15 of 62 week. With the exception of the "9/80 plan" as described above and the 4/11 Dispatcher Plan, the standard work week shall be forty hours to be worked within five consecutive days. Additional exceptions to the above are listed in Appendix D. The Union shall be notified of any further exceptions to this section in accordance with Article III, Section 8. The City and the Union agree that the availability of alternate/flexible work schedules is a valuable benefit in that they promote job satisfaction while also reducing traffic congestion and air pollution. During the term of this agreement, employees, subject to the conditions of their job assignment, may propose an alternate work schedule as listed under this Section. Such proposals must be made to the department head through the immediate supervisor. Serious consideration will be given to the feasibility and productivity of such proposals, however Management retains the right to determine scheduling needs. Section 2 - Overtime Work. a) Overtime work for all unit employees shall be defined as any time worked beyond the standard workday or beyond the standard work week. Emergency overtime is defined as unplanned overtime work arising out of situations involving real loss of service or property or personal danger. Emergency overtime does not include: i. overtime work resulting from personnel replacement for purposes of maintaining scheduled staffing; ii. overtime work which is planned in advance; iii. overtime work resulting from being held over for up to four hours to finish work performed during the regular shift. b) Compensation to employees working overtime will be in the form of additional pay at the rate of one and one-half times. Two times regular rate will be paid for billable customer convenience overtime and emergency overtime as defined in subsection (a) above) the employee's applicable hourly salary with the exception that an employee may request and, upon approval, be granted compensatory time off at the rate of one and one-half hours for each hour of overtime worked, subject to the limitations of applicable state and federal laws. In the event compensatory time off is used as the method of compensating for Overtime, the time off will be taken prior to the end of the quarter following the quarter in which the overtime has been worked. In the event the employee is denied this provision, he/she will be compensated in pay for such time at the appropriate rate specified by these sections. Or at the employee's option, the earned compensatory time will be added to the employee's vacation balance. c) All time for which pay is received shall count as hours actually worked for the computation of regular overtime pay; however, non-productive time will not be included in computation of any additional FLSA premiums. City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 16 of 62 d) When an employee is required to work 6 or more hours of overtime (either emergency or pre-arranged) during the 16 hour period immediately preceding the beginning of the employee’s regular shift on a workday, the employee shall be entitled to an eight-hour rest period before returning to work. If the rest period overlaps into the second half of the work day, the employee may be given (with supervisor approval) the remaining time off (up to a maximum of 3 hours) at the straight time rate of pay. Any portion of the rest period falling within the employee’s work shift will be considered as hours worked and compensated at the straight time rate. e) If non-emergency overtime is canceled without at least 40 clock hours notice, the City shall pay the affected employees two (2) hours' pay at time and one-half. f) Employees working overtime who are too fatigued to continue or return to work, for safety reasons will be released from duty without compensation. Section 3 - Work Shifts. All employees shall be assigned to work shifts with scheduled starting and quitting times. Should conditions necessitate a change in starting and quitting times, the Union will be notified ten (10) working days in advance and permitted to discuss such changes with the City. This, however, shall not preclude the City's right to effect schedule changes dictated by operational necessity. This section does not apply to overtime scheduling. Section 4 - City-Paid Meals. a) Emergency overtime meals. For purposes of this section, emergency overtime is defined as unplanned overtime arising out of situations involving real loss of service or property or personal danger. The City agrees to reimburse for meals in the amount of $10 for breakfast, $15 for lunch, and $20 for dinner and will provide meals in the following emergency overtime situations: 1) When an employee is called back and is on duty for a period of three consecutive hours, and thereafter at intervals of five hours, but not more than six hours, until the continuous overtime assignment ends. OR, 2) When an employee is held over on duty so that his/her overtime assignment extends two hours after shift end, and thereafter at intervals of five hours, but not more than six hours, until the continuous overtime assignment ends. OR, 3) When an employee is called out two hours or more before a regularly scheduled day shift and works the regularly scheduled shift, he/she will be entitled to breakfast and lunch. Lunches will be consumed on employee's own time. No in- lieu pay will be made for meals not taken. This sub-section does not apply if already covered in Section 4(a)(1) above. City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 17 of 62 4) When recalled two hours or less after the end of a regular shift, unless assigned to standby. b) Non-emergency overtime meals. The City will provide meals for personnel assigned to non-emergency overtime work where the assignment extends more than two hours after the regular or overtime shift end and at intervals of five hours thereafter. c) With regard to (a) and (b) above, the City agrees to reimburse for meals in the amount of $10 for breakfast, $15 for lunch, and $20 for dinner. Where possible, the City will arrange purchase orders at mutually agreeable restaurants. The time necessarily taken to consume a meal provided under this section shall be considered as time worked to a maximum of one hour, except as noted in (a) (3). d) With regard to (a) and (b) above, in the event an employee is to be provided a meal or meals pursuant to this section and such meal(s) are not provided due to working conditions, the employee shall have the option of receiving for each meal not provided an additional one hour of overtime compensation in lieu of such meal. This hour will not be considered as time worked or part of the rest period, but will be applied to qualify for the rest period. e) Emergency overtime meals for Public Safety Dispatchers. The Police Department will provide meals to employees in an emergency overtime situation involving real or potential loss of service or personal danger. 1) When an employee is called back and is on duty for a period of three consecutive hours, and thereafter at intervals of five hours, but not more than six hours, until the continuous overtime assignment ends. 2) When an employee is held over on duty so that his/her overtime assignment extends two hours after shift end, and thereafter at intervals of five hours, but not more than six hours, until the continuous overtime assignment ends. 3) When an employee is called out two hours or more before a regularly scheduled shift. The employee will be entitled to two meals, the second meal will be consumed on the employee's own time. No in-lieu pay will be made for meals not taken. 4) When recalled two hours or less after the end of a regular shift, unless assigned to standby. f) Non-emergency overtime meals for Public Safety Dispatchers. The Police Department will provide meals to employees in non-emergency situations where the assignment extends more than two hours after the regular or overtime shift end and at intervals of five hours thereafter. If the City is unable to provide a meal, the City City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 18 of 62 agrees to reimburse for meals in the amount of $10 for breakfast, $15 for lunch, and $20 for dinner. This policy only applies when an employee is held over, either voluntary or mandated, on duty beyond a scheduled regular or overtime shift. Section 5 - Break Periods. All employees shall be granted a break period or coffee break limited to 15 minutes during each four hours of work. Departments may make reasonable rules concerning break period scheduling. Break periods not taken shall be waived. Section 6 - Clean-Up Time. All employees whose work causes their person or clothing to become soiled shall be provided with reasonable time before lunch and at shift end for wash-up purposes. Section 7 - Standby Pay, Call-Out Pay. a) Standby Compensation. Employees performing standby duty shall be compensated at the daily rates established below: Monday through Friday $50 Saturday, Sunday, Holidays $73 b) Minimum Call-Out Pay. Employees not otherwise excluded from receiving overtime pay who are called out to perform work shall be compensated for at least two hours' pay from the time of the call-out for each occurrence at the appropriate overtime rate. The two-hour minimum does not apply to employees called out to work while earning pay for being in a standby status unless called out to perform billable customer convenience work in which case the two-hour minimum will apply. Section 8 - Night Shift Premium. Night shift premium of $1.44 per hour shall be paid to employees for work performed between 6:00 p.m. and 8:00 a.m. This premium shall not apply to an employee whose schedule does not qualify for shift differential who requests an earlier scheduled start time that would otherwise qualify the employee for the premium. A minimum of two hours must be worked between 6 p.m. and 8:00 a.m. to qualify for the premium. Employees who regularly work night shifts shall receive appropriate night shift premiums, relating to night shift hours worked, in addition to base pay for holidays, sick leave and vacation. Night shift premium does not apply for overtime situations unless overtime is approved to replace an employee who would have otherwise received a night shift premium. Section 9 - Bilingual Premium. $35 per pay period shall be paid to a bilingual employee whose abilities have been determined by the Human Resource Director as qualifying to fill positions requiring bilingual speaking and/or writing ability when the employee regularly performs such duties. The Human Resource Director will determine the number, timing, location and duration of the assignments receiving the additional pay provided herein and which languages are needed. Sign language shall be recognized as a bilingual skill under this Article. Disagreements over the designation of positions will be City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 19 of 62 referred first to the Labor Management Committee. If a disagreement still exists it will be referred to the Grievance Procedure. Section 10 - Communications Training Officer (CTO) Compensation. Public Safety Dispatchers and Chief Public Safety Dispatchers identified by Management to work as a Police Officers Standards and Training (POST) certified CTO will be compensated at a premium pay rate of five (5) percent. The premium pay is provided only for those hours spent as a CTO training a probationary dispatcher while on-duty in the Dispatch Center. ARTICLE IX - UNIFORMS AND TOOL ALLOWANCES Section 1 - Uniforms. a) The City will provide uniforms, coveralls or shop coats on a weekly basis, or as otherwise furnished, for the following jobs and/or classifications and any positions necessary or required as determined by management. Animal Control Officer Assistant Storekeeper Auto Service Mechanic Building Service Person - Lead Building Service Person Cathodic Technician Cement Finisher - Lead Cement Finisher Chemist Community Service Officer () Electrical Assistant Electrician Apprentice Electrician Lead Engineering Technician III - Refuse Equipment Operator Equipment Operator - Lead Facilities Carpenter Facilities Electrician Facilities Maintenance - Lead Facilities Mechanic Facilities Painter Field Serviceperson Gas System Shop/Field Repairer Gas System Technician I Gas System Technician II Golf Course Equipment Mechanic Golf Course Maintenance Person Heavy Equipment Operator - Lead Heavy Equipment Operator City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 20 of 62 Industrial Waste Inspector Industrial Waste Investigator Instrumentation Electrician Laboratory Technician, Water Quality Control Line Person/Cable Splicer Line Person/Cable Splicer - Lead Mail Services Specialist Maintenance Mechanic/Maintenance Mechanic, Water Quality Control Mechanical Unit Repairer Meter Reader Meter Reader – Lead Mobile Service Technician Motor Equipment Mechanic - Lead Motor Equipment Mechanic Offset Equipment Operator - Lead Offset Equipment Operator Park Maintenance Assistant Parking Enforcement Officer Park Maintenance Person Park Crew - Lead Park Maintenance - Lead Park Ranger Parks & Open Space Assistant Police Records Specialist Refuse Disposal Attendant Senior Chemist Senior Industrial Waste Inspector Senior Instrumentation Technician Senior Operator, Water Quality Control Senior Mechanic, Water Quality Control Senior Park Ranger Sprinkler System Repairer Street Maintenance Assistant Storekeeper Storekeeper-Lead Street Sweeper Operator Traffic Control Maintainer - Lead Traffic Control Maintainer II Traffic Control Maintainer I Tree Trimmer-Line Clearer Tree Maintenance Assistant Tree Trimmer-Line Clearer Assistant Tree Trimmer-Line Clearer - Lead Tree Maintenance Person Truck Driver Utilities Compliance Technician City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 21 of 62 Utility Field Service Representative Utility Installer/Repairer Utility Installer/Repairer Assistant Utility Installer/Repairer – Lead Utility Locator Water Meter Cross Connection Technician Water System Operator - Lead Water System Operator Water System Operator I Water System Operator II Water Quality Control Plant Operator b) Coveralls will be made available for occasional use as needed to protect clothing for the following classifications and any positions necessary or required as determined by management. Building Inspector Building Inspector Specialist Building Service Person - Lead Cable Splicer Assistant Chief Electric Underground Inspector Electrical Assistant Electrician Facilities Mechanic/Painter Heavy Equipment Operator Lineperson/Cable Splicer Park Ranger Senior Park Ranger Utility Field Service Representative Sprinkler System Repairer Utility Installer Assistant Utility Installer/Repairer Utility Installer/Repairer - Lead c) Employees required to wear uniforms shall be provided suitable change rooms and lockers where presently provided. d) Employee clothing seriously damaged or destroyed in conjunction with an industrial injury will be reasonably replaced by the City. Any other claims alleging City liability may be filed with the City Attorney. e) Except in the Utilities Division, the City will make available, as an alternative to the shirts currently provided under Section 1(a), six (6) cotton polo shirts. Employees in the Utilities Division will be provided with six (6) long-sleeve shirts and two polo shirts. Employees will be responsible for laundering the shirts. Damaged or City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 22 of 62 otherwise unwearable shirts will be returned to the employee’s supervisor and replaced by the City. f) Employees are responsible for laundering Park Ranger and Senior Park Ranger uniforms. g) The City will meet and confer with the Union regarding any mandated changes to uniforms. Section 2 - Tool Allowance. a) Mechanics in Equipment Maintenance, Park Maintenance Lead, Motorized Equipment Mechanic and Mobile Service Technician shall be paid a tool allowance of $610 annually. b) All tool allowances shall be paid bi-weekly. c) Parties will meet and confer to determine if additional classifications require tool allowance. Section 3 - Shoe Allowance. a) Safety Shoes. The City shall reimburse employees 75 % of the cost of job-related safety shoes upon verification of such purchase by the employee. b) Walking Shoes. The City will reimburse employees 75% of the cost of job-related walking shoes for any positions necessary or required as determined by management including Meter Reader and Meter Reader-Lead, in an amount not to exceed $300.00 per year. A walking shoe is a durable work shoe/boot (non steel-toed), is ankle supporting; oil, gas and slip resistant; waterproof or water resistant; lightweight and durable; and also provides hard surface cushioning. Section 4 - Certifications. The parties agree to retain the current list of required certifications below. Employees who are required to maintain commercial driver's licenses shall have costs for medical examinations paid by: a) Completing an examination through their PEMHCA provider. After benefits have been paid by the PEMHCA provider, upon presentation of proper documentation, the City will reimburse any remaining costs, or b) Completing an examination at the Workforce Medical clinic or other City designated clinic. Employees may use paid leave for attendance at scheduled medical examinations. Employees shall be permitted to use up to two hours of regular City- paid time for attendance at biannual medical examinations. The scheduling of such time shall be preauthorized by the employee’s supervisor. City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 23 of 62 c) The City will pay special registration and/or certification fees which are required by Management. During the term of this agreement, the City and the Union may, by mutual agreement, review, add or delete classifications and/or required certifications listed below: Classification Requirement Buildg Inspection Specialist ICBO Certificate Cathodic Technician Corrosion Technician by the National Assoc. of Corrision Engineers Engineer Professional Professional Engineer Cert. (for step E) Equip Maint Serv Pers. Forklift Operator Cert. (OSHA-approved) Golf Course Maint Pers. Qualified Applicators' License Heavy Equipment Operator Crane Operation Certificate (Utilities and Electric) Indust. Waste Inspector Backflow Prevention Device Tester Inspector Field Services, Utilities D1 (DOH) Hired before July 1, 2012 Installer/Repairer Series D1 (DOH) Maintenance Mechanic Crane Operator Certification (Water Quality) Mech. Unit Repairer Welding Certificate Motor Equip Mechanic and Lead EMS, ASE Public Safety Dispatcher POST Basic Dispatcher POST Fire Academy EMD Public Safety Dispatcher, Lead POST Basic Dispatcher POST Fire Academy POST Supervision EMD Senior Operator, WQC Grade III Wastewater Treatment Plant Operator Certification City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 24 of 62 Surveyor, PW Licensed Land Surveyor Tree Trimmer/Line Clearer Certified Tree Worker and/or Qualified Line Clearance/Tree Trimmer Cert. (OSHA-approved) Tree Trimmer/Line Clearer-Lead Certified Arborist Utilities Install/Rep series Polyethylene Fusing Cert. Gas Operator Certification (DOT) Veterinarian Technician Animal Health Tech. Certification Water System Operator I Grade DI – Water Distribution Operator Water System Operator II Grade DII – Water Distribution Operator & Grade TII – Water Treatment Operator Senior, Water System Operator Grade DIII – Water Distribution Operator & Grade TIII Water Treatment Operator WQC Plant Operator I Grade I Water Treatment Operator Certification. WQC Plant Operator II Grade II Water Treatment Operator Certification WQC Plant Operator Trainee Grade I Water Treatment Operator Certification Water Meter Cross- Connection Technician Backflow Prevention Tester Certification d) The City will pay for the Department of Motor Vehicles (DMV) licensing fees for all employees required to maintain a Commercial Driver's License in accordance with the California Vehicle Code and applicable laws prescribed by the Department of Transportation. e) Pipeline Welding Assignment. The City provided a 4% premium in base compensation to Utility Installer-Repairer, Installer-Repairer Lead positions in 2006 that met DOT certification requirements and are were assigned these duties. Utility Installer-Repairer and Utility Installer-Repairer Lead positions that fail to maintain current certifications will not receive a 4%premium on their base pay. Positions assigned these duties and designated by Management to receive this premium will not exceed five (5) Utility Installer/Repairer and Installer/Repairer Lead. If the certification is required in the job description, certification must be maintained. In City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 25 of 62 accordance with their job description Maintenance Mechanics that are assigned to Water Gas Wastewater must maintain all required certifications and shall receive 4% premium to their base pay for pipeline welding. f) Building Inspector. Upon successful completion of probationary requirements, the City will pay Building Inspectors a one (1) percent of base salary one-time payment for a certification above what is required. Employees may request one payment per year to a maximum of two payments in career. Payments will not exceed a maximum of one percent per year or two payments in a career. The Building Inspector Job Description specifies current requirements and the Union and City will agree on a list of appropriate certifications eligible for the premium. Premiums will not be paid if certification is not maintained. g) Water and Wastewater System Operator Certification. Employees classified in the following positions: Water Quality Control Plant Operators I and II, Senior Operator Water Quality Control, Water System Operators I and II, Senior Water Systems Operator, Inspector, Field Services assigned to Utilities and Installer Repairer Job Series may be eligible to receive a 1% base pay premium for certifications required by the Department of Health and/or the State Water Resources Control Board. Employees within these job classifications that have successfully completed probationary requirements may request an annual payment of one (1) percent for one (1) certification that is above those listed in their job description. An employee who qualifies for this payment shall be paid 1% of the employee’s annual base salary once per year. The employee shall be responsible for providing the City with written documentation that the employee has obtained and is maintaining the qualifying certification on an annual basis. Premiums will not be paid if certification is not maintained. Eligible employees should verify certification will qualify for the premium before attempting certification. The Union and the City will update the job descriptions to reflect newly required certifications with no further adjustments to base salary. Payments will not exceed a maximum of one percent per year, and will take effect in the pay period following the verification of certification. All costs for obtaining certifications above what the job description requires will be the responsibility of the employee and may be paid for by using the City’s tuition reimbursement program. h) In accordance with Cal-OSHA regulations any employee who operates a forklift must have Forklift Operator Certification. Training to be provided by the City. a) Crane Certification. A Heavy Equipment Operator, Line Person, Line Person Lead, or Maintenance Mechanic who possesses the legally required certification for operation of any crane will receive an increase of one percent (1%) of their base rate effective upon the ratification and adoption of this MOU by the City Council, or upon attainment of the certification, whichever is later. City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 26 of 62 Heavy Equipment Operator (Electric) must possess a Crane certification regardless of hire date. Any employee hired on or after July 1, 2012 may be required to obtain and possess crane certification. For any other employee hired prior to July 1, 2012 crane certification shall be desirable (not required) except under the following circumstances: a) there are insufficient employees in the classification (Heavy Equipment Operator [exclusive of Electric], Lineperson, Lineperson Lead or Maintenance Mechanic) who possess the certification to perform the work; b) The Manager has sought volunteers and no employee in the classification has volunteered to train for the certification; c) all things being equal, the manager has selected the least senior employee in the classification who is judged by the City most likely to successfully complete the training and obtain crane certification. d) The Manager will allow up to three attempts to pass the crane certification for any employee hired before July 1, 2012 who has been involuntarily assigned to acquire the crane certification. Related training and test costs shall be borne by the City. No employee hired before July 1, 2012 shall be disciplined or discharged for failure to acquire a Crane certification. Section 5 - Weather Protection. The City will provide rainy weather foot protection and one summer hat for the classification of Parking Enforcement Officer. ARTICLE X - HOLIDAYS Section 1 - Fixed Holidays. Except as otherwise provided, employees within the representation unit shall have the following fixed holidays with pay: January 1 Third Monday in January (Martin Luther King Day) Third Monday in February Last Monday in May July 4 First Monday in September Second Monday in October Veterans' Day, November 11 Thanksgiving Day Day after Thanksgiving December 25 Either December 24 or December 31 (see below) City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 27 of 62 Employees shall be excused with pay for the full work shift on either December 24 or December 31, provided, however, that City facilities remain open with reduced staffing levels, that Management retains the right to determine work schedules, and that neither day be considered a holiday for purposes of premium pay. If employees are not excused pursuant to this provision, one shift of vacation credit will be added to their vacation accrual. In the event that any of the aforementioned days, except for December 24 or December 31, falls on a Sunday, the following Monday shall be considered a holiday. In the event that any of the aforementioned days falls on a Saturday, the preceding Friday shall be considered a holiday. If December 24 and 31 falls on Sunday, then the preceding Friday will be designated for purposes of the holiday. Exceptions to this provision are listed in Appendix E. Section 2 - Pay for Fixed Holidays. a) All employees shall be paid a full day's pay at their regular straight time base hourly rate for all fixed holidays as defined herein. b) An employee must be in a pay status on the workday preceding the holiday to be eligible to be compensated for a holiday. This subsection does not apply to an employee who is on an unpaid medical leave of absence of less than five (5) days. Section 3 - Work on Fixed Holidays. Any employee required to work on a fixed holiday shall be paid time and one-half for such work in addition to his or her regular holiday pay. Work on a fixed holiday beyond the number of hours in a regular shift shall be compensated at double time and one-half. Employees who work a schedule where a regular day off falls on a holiday will accrue the holiday hours they would have normally worked on that day. Section 4 - Variations in Work Week. a) An employee whose work schedule requires that his or her regular days off be other than Saturday and/or Sunday shall have an additional day off scheduled by the department in the event a fixed holiday falls during his or her regularly scheduled day off. Every attempt will be made to schedule the day on a mutually agreeable basis. If the day cannot be so scheduled, the employee shall be paid for the day at the straight time base rate. b) Fixed holidays which fall during a vacation period or when an employee is absent because of illness shall not be charged against the employee's vacation or sick leave balance. Section 5 - Floating Days Off Employees hired on or before July 1, 2012 will be credited with 3 floating holidays to be scheduled for use by mutual agreement by employee and supervisor. In no event will FH be convertible to cash or other benefits in lieu of Floating Holidays. City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 28 of 62 Effective at the close of business 6/30/13 one floating holiday will be eliminated. On July 1, 2013 and every July thereafter, employees will be credited with two (2) Floating Holidays to be scheduled in the same manner as noted above. Employees hired after 7/1/12 will not receive any floating holidays. Floating Holidays not used by the end of the fiscal year will be deemed forfeited. ARTICLE XI - VACATIONS Section 1 - Vacation Accruals. Each employee shall be entitled to an annual paid vacation, accrued as follows: a) First day of continuous service through the last day of the fourth (4th) year: 80 hours vacation per year. b) First day of the fifth year of continuous service through the last day of the ninth (9th) year: 120 hours vacation per year. c) First day of the tenth (10th) year of continuous service through the last day of the fourteenth (14th) year: 160 hours vacation per year. d) First day of the fifteenth (15th) year of continuous service through the last day of the nineteenth (19th) year: 180 hours vacation leave per year. e) Twenty (20) or more years: 200 hours vacation leave per year. Employees may accrue up to three times their annual vacation leave without loss of vacation days. In the event the City is unable to schedule vacation and, as a result thereof, the employee is subject to loss of accrued vacation, the City shall extend the vacation accrual limit up to one year, in which time the excess vacation must be scheduled and taken. As long as there is no interference with departmental operations, there shall be no unreasonable restriction of increments of use. Employees shall complete six (6) months' continuous service before using accrued vacation leave. Section 2 - Holiday Falling During Vacation. In the event a fixed holiday as defined in Article X falls within an employee's vacation period, which would have excused the employee from work (and for which no other compensation is made), an additional workday for such holiday shall be added to the vacation leave. Section 3 - Illness During Vacation. When an employee becomes ill while on vacation and such illness can be supported by a statement from an accredited physician or the employee is hospitalized for any period, the employee shall have the period of illness charged against sick leave and not against vacation leave. City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 29 of 62 Section 4 - Accrued Vacation Pay for Deceased Employees. An employee who is eligible for vacation leave and who dies while in the municipal service shall have the amount of any accrued vacation paid to his/her estate within thirty days. This proration will be computed at his/her last basic rate of pay. Section 5 - Effect of Extended Military Leave. An employee who interrupts service because of extended military leave shall be compensated for accrued vacation at the time the leave becomes effective. Section 6 - Vacation at Termination. Employees leaving the municipal service with accrued vacation leave shall be paid the amounts of accrued vacation to the date of termination. Section 7 - Vacation Cash Out. Once each calendar year an employee may cash out eight or more hours of vacation accrual in excess of 80 hours, to a maximum of 120 hours, provided that the employee has taken 80 hours of vacation in the previous 12 months. 1. To be eligible for cash out vacation, employees must pre-elect the number of vacation hours they will cash out during the following calendar year up to maximum of 120 hours, prior to the start of that calendar year. The election will apply only to vacation hours accrued in the next tax year and eligible for cash out. 2. The election to cash out vacation hours in each designated year will be irrevocable. This means that employees who elect to cash out vacation hours must cash out the number of accrued hours pre-designated on the election form provided by the City. 3. Employees who do not pre-designate or decline a cash out amount by the annual deadline established by the City will be deemed to have waived the right to cash out any leave in the following tax year and will not be eligible to cash out vacation hours in the next tax year. 4. Employees who pre-designate cash out amounts may request a cash out at any time in the designated tax year by submitting a cash out form to Payroll. Payroll will complete the cash out upon request, provided the requested cash out amount has accrued and is consistent with the amount the employee pre-designated. If the full amount of hours designated for cash out is not available at the time of cash out request, the maximum available will be paid. 5. For employees who have not requested payment of the elected cash out amount by November 1 of each year, Payroll will automatically cash out the pre-designated amount in a paycheck issued on or after the payroll date including November 1. City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 30 of 62 ARTICLE XII - LEAVE PROVISIONS Section 1 - Sick Leave. a) The City shall provide each employee with paid sick leave, earned on a daily basis and computed at the rate of 96 hours per year, with no limits on amounts that may be accumulated, except that for employees hired after July 1, 1983, sick leave accrual accumulation shall be limited to 1,000 hours and subsections (a)(1) and (a)(2), shall not apply. Payment for accumulated sick leave at termination shall be made only in the following circumstances: 1) Eligible employees who leave the municipal service or who die while employed and who have fifteen or more years of continuous service shall receive compensation for unused sick leave hours in a sum equal to two and one-half percent of their unused sick leave hours multiplied by their years of continuous service and their base hourly rate of pay at termination. 2) Full sick leave accrual will be paid in the event of termination due to disability. b) Use of Sick Leave. Sick leave shall be allowed and used in cases of actual personal sickness or disability, medical or dental treatment, or as authorized for personal business. Up to nine days sick leave per year may be used for illness in the immediate family, including registered domestic partner. A new employee may, if necessary, use up to forty-eight (48) hours of sick leave at any time during the first six months of employment. Any negative balances generated by such utilization will be charged against future accrual or deducted from final paycheck in the event of termination. c) An employee who has been disabled for 60 consecutive days and who is otherwise eligible both for payment under the long-term disability group insurance coverage and accrued sick leave benefits may, at his/her option, choose either to receive the long term disability benefits or to utilize the remainder of his/her accrued sick leave prior to applying for long-term disability benefits. d) Sick leave will not be granted for illness occurring during any leave of absence unless the employee can demonstrate that it was necessary to come under the care of a doctor while on such other leave of absence. e) Return to Work With Limited Duty. Upon approval of department management and the City Risk Manager, an employee may return to work for doctor-approved limited duty. Approval for return to work shall be based upon department ability to provide work consistent with medical limitations, the location of the work assignment, and the length of time of the limitations. The City doctor may be consulted in determining work limitations. City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 31 of 62 Section 2 - Bereavement Leave. Leave of absence with pay of three days shall be granted an employee by the head of his or her department in the event of death in the employee's immediate family, which is defined for the purposes of this section as wife, husband, son, step-son, son-in-law, daughter, step-daughter, daughter-in-law, mother, step-mother, mother-in-law, father, step-father, father-in-law, brother, brother-in-law, step-brother, sister, step-sister, sister in- law, grandmother, grandmother-in-law, grandfather, grandfather-in-law, grandchildren, aunt, uncle, niece, nephew, registered domestic partner, or a close relative residing in the household of the employee. Such leave shall be at full pay and shall not be charged against the employee's accrued vacation or sick leave. Request for leave with pay in excess of three (3) days shall be subject to the written approval of the City Manager. Approval of additional leave will be based on the circumstances of each request with consideration given to the employee's need for additional time. Section 3 - Military Leave. The provisions of the Military and Veterans' Code of the State of California shall govern the granting of military leaves of absence and the rights of employees returning from such leaves. Consistent with the Military and Veterans Code, the City of Palo Alto shall pay employees in SEIU bargaining unit their regular salary, salary differential, and all available benefits for the first thirty days. Section 4 - Leave Without Pay. a) Disability. Leaves of absence without pay may be granted in cases of disability not covered by sick leave. Pregnancy will be considered as any other disability. Leaves of absence for disability are subject to physicians' verification including diagnosis and medical work restriction. b) Family Leave. Family leave will be granted in accordance with applicable state and federal law. c) Other Leaves. Leaves of absence without pay may be granted in cases of personal emergency, Union business or when such absences would not be contrary to the best interest of the City. Non-disability prenatal leave is available under this provision, but such leave shall not begin more than six months prenatal nor extend more than six months postpartum. During unpaid leaves of absence for disability or other reasons, the employee may elect to use accrued vacation credits. Requests for leaves without pay shall not be unreasonably denied. In order to avoid misunderstandings, all leaves without pay must be in writing to be effective. Section 5 - Jury Duty and Subpoenas. Employees required to report for jury duty or to answer subpoenas as a witness in behalf of the State of California or any of its agencies shall be granted a leave of absence with pay from their assigned duties until City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 32 of 62 released by the court, provided the employee remits to the City all fees received from such duties other than mileage or subsistence allowances within thirty (30) days from the termination of jury service. When an employee returns to complete a regular shift following time served on jury duty or as a witness, such time falling within the work shift shall be considered as time worked for purposes of shift completion and overtime computation. In determining whether or not an employee shall return to his or her regular shift following performance of the duties, reasonable consideration shall be given to such factors as travel time and a period of rest. When a combination of City work time and jury duty equals 14 or more hours in the 24-hour period immediately before the employee's shift starting time, the employee will be allowed a rest period of nine hours. Any portion of the rest period falling within the employee's work shift will be considered as hours worked and compensated at the straight time rate. This provision does not apply to conditions of bona fide emergency. Bona fide emergency conditions are conditions involving real or potential loss of service or property or personal danger. Section 6 - Time Off to Vote. Time off with pay to vote in any general or direct primary election shall be granted as provided in the State of California Elections Code, and notice that an employee desires such time off shall be given in accordance with the provisions of said Code. Section 7 - Disapproval of Leave of Absence. In case of disapproval of extension, revocation or cancellation of an existing leave of absence, notice shall be sent by certified mail, return receipt requested, to the employee stating the date of such action, the reason and a specific date to return to work, which is not less than five working days from date indicated on return receipt. Section 8 - Personal Business Leave Chargeable to Sick Leave. All employees shall be granted up to twenty (20) hours personal business leave per calendar year, chargeable to sick leave. The employee need not disclose the reason for the personal business. The scheduling of such leave is subject to the approval of the appropriate level of Management, and such approval shall not unreasonably be denied. Section 9 - Return to Assignment. The department shall make every effort to ensure that employees resuming work following a leave pursuant to Sections 1- 8 shall be returned to the assignment, shift, and/or work location held immediately prior to the leave. If the employee cannot be so assigned, he or she shall, upon request, be granted a meeting with department management to discuss the reasons for the change. Upon request, the employee shall be afforded Union representation at such a meeting. ARTICLE XIII - WORKERS' COMPENSATION INSURANCE Section 1 - Industrial Temporary Disability. a) While temporarily disabled, employees shall be entitled to use accrued sick leave for the first three (3) days following the date of injury and thereafter shall be paid full base salary for a period of not to exceed fifty-seven (57) calendar days, unless City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 33 of 62 hospitalized, in which case employees shall be paid full base salary for a period not to exceed sixty (60) days from date of injury. b) For any temporary disability continuing beyond the time limits set forth in (a) above, employees shall be paid two-thirds (66 2/3%) of their full base salary at the time of injury for the duration of such temporary disability in conformance with the State law. c) During the period of temporary disability, an employee's eligibility for health, dental, life, LTD, or other insured program will continue with City contributions at the same rate as for active employees. In case of Subsection (a) above, the employee will continue to accrue vacation and sick leave benefits. In the case of Subsection (b), sick leave and vacation benefits shall not be accrued. Section 2 - Vocational Rehabilitation Benefits for Permanently Disabled Employees. Vocational Rehabilitation will be made available to employees who have suffered permanent disability as a result of an injury or illness sustained in the course and scope of employment before 1/1/04. For injuries on or after 1/1/04 qualified employees are entitled to supplemental job displacement vouchers in accordance with the California Labor Code, Division 1, Department of Industrial Relations and Division 4, Workers’ Compensation and Insurance, the Americans with Disabilities Act (ADA), and the City of Palo Alto's Workers’ Compensation Program. ARTICLE XIV - BENEFIT PROGRAMS Section 1 - Health Plan a) Active Employees 1. Through October 5,, 2012 the City and employees will continue to contribute toward medical insurance premiums in the same proportion and subject to the same terms that they contributed toward such premiums as of June 30, 2012. Effective at the start of the pay period including October 6, 2012the City will pay a maximum of ninety percent (90%) of the monthly medical premium for the plan in which the employee is enrolled at the employee’s applicable level of enrollment (i.e. employee only, employee plus one dependent or employee plus two or more dependents). However, the City will in no event contribute more than ninety percent (90%) of the premium for the second most expensive plan among the existing array of plan sat the employee’s applicable level of enrollment. City medical premium contributions will be prorated for part-time employees hired or newly assigned to a part-time work schedule on or after January 1, 2010 based on the number of hours per week the part-time employee is assigned to work. If PERS changes the plans it offers, the City and the Union will meet and confer over the City continuing to provide an equivalent benefit at an equivalent cost. City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 34 of 62 The City shall contribute to its retiree insurance trust (the PERS retiree medical trust or its successor) an amount not less than the amount of premium contributions paid by active employees in the bargaining unit in the respective calendar year as a result of the employees’ payment of ten percent (10%) of the premium increase as provided above in this paragraph 1. The City shall make one contribution in the fiscal year to cover the entire amount payable to the trust under this paragraph as of the preceding December 31. b) Health Plan Coverage for Future Retirees Hired Before January 1, 2005. Monthly City-paid premium contributions for a retiree-selected health plan through the CalPERS Health Benefits Program will be made as provided under the Public Employees’ Medical and Hospital Care Act. Effective 1/1/07 the City’s monthly employer contribution for each retiree shall be the amount necessary to pay for the cost of his or her enrollment, in a health benefits plan up to the monthly premium for the 2nd most expensive plan offered to the SEIU employee (among the existing array of plans). However, the City contribution for an employee hired before January 1, 2005 who retires on or after April 1, 2011 shall be the same contribution amount it makes from time to time for active City employees. For 2012, the contribution for dependents is 95% (100% in 2013) of difference between the applicable “Employee and One Dependent” or “Family” maximum employer contribution for Active SEIU employees and the maximum monthly employer contribution for “Employee Only” coverage. c) PERS – Health Benefit Vesting For Future Retirees Effective January 1, 2005. The CalPERS vesting schedule set forth in Government Code section 22893 will apply to all SEIU employees hired on or after January 1, 2005. Under this law, an employee is eligible for 50% of the specified employer health premium contribution after ten years of service credit, provided at least five of those years were performed at the City of Palo Alto. After ten years of service credit, each additional year of service credit will increase the employer contribution percentage by 5% until, at 20 years’ service credit, the employee will be eligible upon retirement for 100% of the specified employer contribution. However, the maximum contribution for family members will be 90% of the specified employer contribution. The City of Palo Alto's health premium contribution will be the minimum contribution set by CalPERS under section 22893 based on a weighted average of available health plan premiums. d) Coverage for Domestic Partners. Domestic Partnership Registered with the California Secretary of State. Employees may add their domestic partner as a dependent to their elected health plan coverage if the domestic partnership is registered with the Secretary of State. Domestic Partnership Not Registered with the California Secretary of State. Domestic partners who meet the requirements of the City of Palo Alto Declaration of Domestic Partnership, and are registered with the Human Resources Department, will City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 35 of 62 be eligible for reimbursement of the actual monthly premium cost of an individual health plan, not to exceed the maximum monthly City employer contribution for one- party coverage under the CalPERS Health Benefits Program for SEIU members. Evidence of premium payment will be required with request for reimbursement. e) At City option during the life of this agreement and if otherwise available, the City may offer an incentive payment in lieu of City-paid dependent or family medical coverage for those employees who voluntarily decline dependent coverage. f) Alternative Medical Benefit Program. If a regular employee and/or the employee’s dependent(s) are eligible for medical insurance through any other employer-sponsored or association-sponsored group medical plan, the employee may elect that alternative medical insurance coverage through the other employer-sponsored or association plan and waives his/her right to the City of Palo Alto’s medical plan insurance coverage for same individuals. Employees electing alternative coverage and waiving City coverage will receive cash payments in the amount of two hundred eighty-four dollars ($284) for each month for which the employee has elected alternative coverage and waived City coverage, effective at the start of the pay period including October 6, 2012. From and including July 1, 2012 through the day before the start of the pay period that includes October 5, 2012 the benefit payable under this Alternative Medical Benefit Program will be the same benefit in effect June 30, 2012. g) If the State of California or federal government requires the City to participate and contribute toward coverage under any medical plan outside of PEMHCA, the City’s total liability for enrolled employees and retirees and their eligible family members shall not exceed what the City would have paid toward PEMHCA coverage in the absence of such state or federal plan. The City will meet and confer with the Union over the impact of such change on matters within the scope of representation before implementing any change. Section 2-Dental Plan. a) The City shall continue to provide a self-funded dental program for the benefit of City employees and their eligible dependents. The City shall pay 100% of the required premiums for the program, except that benefits for regular part-time employees will be prorated as follows: Employees hired after January 1, 2005, who will work less than full time, will receive prorated premium costs for dental benefits in accordance with his/her percentage of a full-time work schedule. Part-time employees currently receiving full benefits will not be impacted. b) The City’s Dental Plan provides the following:  Maximum Benefits per Calendar Year $2,000 per person. City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 36 of 62 c) Effective July 1, 2001, dental implants in conjunction with one or more missing natural teeth, and removal of implants will be covered as a Major Dental Service at 50% usual, customary and reasonable (UCR). d) Effective 1/1/07 the City will add composite (tooth colored) fillings in dental plan posterior teeth. e) Effective 1/1/07 the City will pay up to $2000.00 for Orthodontia coverage. Section 3 - Vision Care. The City shall continue to provide a self-funded vision care program for the benefit of City employees and their dependents. The City shall pay 100% of the required premiums for the program. The benefits of the vision care program shall continue to be equivalent to $20 Deductible Plan A under the Vision Service Plan. Section 4 - Life Insurance. The City agrees to continue the Basic and Supplemental life insurance plan as currently in effect for the term of this Memorandum of Agreement. Section 5- Long Term Disability Insurance. The City shall continue the long term disability insurance plan currently in effect for the term of this Memorandum of Agreement. For Plan A, the benefit is 66 and 2/3% of pre-disability earnings to the maximum benefit level of $4000.00 per month. Employee coverage is subject to a voluntary payroll deduction of the insurance premium applicable to the first $6,000 of monthly salary, less a credit of $11.17 per month to be paid by the City. For Plan B, the benefit is 60% of pre-disability earnings up to the maximum benefit level of $1800 per month. Employee coverage is subject to a voluntary payroll deduction of the insurance premium applicable to the first $2000 of monthly salary for Plan B. The City will pay premiums in excess thereof. The City will pay up to $17.50 per month toward long term disability insurance premiums for those employees without eligible dependents covered under the health insurance provisions. Section 6 - Effective Date of Coverage for New Employees. For newly-hired regular employees, elected coverage will begin on the first day of the month following date of hire. Section 7 - Dual Coverage. When a City employee is married to another City employee each shall be considered as an employee for purposes of health and dental coverage, provided however that neither shall be covered as a dependent of the other, and dependent children, if any, shall be covered by only one spouse. Section 8 - Deferred Compensation. The City shall continue to make available a Section 457 Deferred Compensation Plan to SEIU employees and will insure reasonable access to Deferred Compensation representatives for all interested employees. Section 9 - Dependent Care Assistance Program. The City shall continue to provide a Dependent Care Assistance Program (DCAP) for employees that complies with Section 125 and 129 of the Internal Revenue Code. City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 37 of 62 Section 10 - Training Programs. a) Employees assigned by the City to attend meetings, workshops, or conventions of their professional or technical associations shall have their dues and reasonable expenses paid by departmental funds and shall be allowed to attend such workshops, meetings, and conventions on paid City time. b) City will reimburse for travel, meals and lodging while away from home attending an educational conference that the supervisor authorizes as being job related or which will improve an employee’s skills. Per City Policy and Procedure 1-02, the Pre- Travel Authorization Form should indicate expenses that will be paid. ARTICLE XV - RETIREMENT Section 1 - PERS Continuation. A. 2.7% @ 55. The City will continue the present benefits under the Public Employees' Retirement System 2.7% at 55 for employees hired before July 17, 2010. The Parties acknowledge that employees under this formula hired before July 17, 2010 are subject to a final compensation calculation, for pension determination purposes, based on their single highest year of compensation earnable as provided by Government Code Section 20042. B. 2.0% @ 60 -1HY. For employees hired on or after July 17, 2010 but before August 1, 2013 or the adoption of the modified 2% at 60 formula described below, whichever is later, the City will continue to provide the 2% at 60 retirement formula (“2% at 60”). The Parties acknowledge that employees under the existing 2% at 60 pension formula are subject to a final compensation calculation, for pension determination purposes, based on their single highest year of compensation earnable as provided by Government Code section 20042. C. 2.0% @ 60 - 3HY. The City shall further amend its contract with CalPERS to provide miscellaneous members hired on or after August 1, 2013 with the CalPERS retirement formula two percent (2.0%) of final compensation at age sixty (60) with a final compensation calculation, for pension determination purposes, based on the employee’s three consecutive highest years of compensation earnable, as provided by Government Code section 20037. The City may delay the adoption or implementation of the foregoing amendment to the extent it deems such delay necessary to accommodate legal and administrative requirements. In such event, employees hired between and including August 1, 2013 and the day before the amendment’s implementation date will be placed in the 2% of final compensation at age 60 formula with single highest year earnable compensation as described above. City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 38 of 62 Section 2 - Employee Share. Effective with the first pay period including July 1, 2012 employees under all retirement formulas set forth in Section 1 above shall pay 8% if enrolled in the 2.7% @55 benefit or 7% if enrolled in the 2% @60 benefit Section 4 - Utility Rates Discount. Employees who retire and were employed by the City on or before April 1, 1977, and spouses of deceased employees who were employed by the City on or before April 1, 1977, shall continue reductions in utility rates. All retired employees and spouses of deceased employees shall also have residential privileges at City libraries, refuse disposal area, golf course and swimming pools. ARTICLE XVI - COMMUTE INCENTIVES AND PARKING Section 1 - Commute Incentive. Eligible employees may voluntarily elect one of the following commute incentives: Civic Center Parking. Employees assigned to Civic Center and adjacent work locations. The City will provide a Civic Center Garage parking permit. New employees hired after April 30, 1994 may initially receive a parking permit for another downtown lot, subject to the availability of space at the Civic Center Garage. Carpool. The City will provide $30 per month (taxable income) to each eligible employee in a carpool for 60% or more of their scheduled work days per month with two or more people. Bicycle. The City will provide $20 per month to eligible employees who ride a bicycle to work. This payment is available through the CCD web site in the form of a special Commuter Check (tax free) for bike equipment, gear or repairs. This benefit cannot be combined with other commute benefits. Walk. The City will provide $20 per month (taxable income) to eligible employees who walk to work 60% or more of their scheduled work days. Transit or vanpool users: Tax-free incentives up to the IRS limit (currently $125/month) are available through the Commuter Check Direct (CCD) web site for employees using Bay Area public transportation or riding in a registered vanpool at least 60% of their scheduled work days. The deadline for registering with CCD and placing an online order is 8:59 p.m. on the 7th of each month, for the next month’s benefit. For example, employees wishing to order a transit pass by June must place their online orders with CCD by May 7th. Section 2 – Parking Lot Security – Municipal Service Center. The City will provide fenced and locked parking facilities for Municipal Service Center employees. Procedures will be established for entering and leaving the parking facilities. City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 39 of 62 Section 3 – Bicycle Lockers and Motorcycle Parking. The City will provide bicycle lockers and motorcycle parking areas for City employees at mutually agreeable work locations. ARTICLE XVII - PHYSICAL EXAMINATIONS If any non-probationary employee who is required to have a City-provided physical examination not related to workers' compensation programs disagrees with the findings of the City-sponsored physician, he/she may consult with his/her own physician and, if his/her private physician's report conflicts with that of the City physician in terms of ability to work at his/her regular job, then he/she may request an evaluation of his/her problem through a third physician mutually agreed upon by the employee and the City. Cost for such examination will be equally shared and the decision of this physician concerning the continuing ability of the employee to perform his/her work in his/her regular job without exposing himself/herself to further injury as a result of his/her condition shall be the basis for returning the employee to his/her regular work. ARTICLE XVIII – SAFETY Section 1 - Health and Safety Provisions. The City shall furnish and use safety devices and safeguards and shall adopt use practices, means, methods, operations and processes which are reasonably adequate to render such employment and place of employment safe, in conformance with applicable safety regulations under the State Labor and Administrative Code sections. The City shall not require or permit any employee to go to or be in any employment or place of employment which is not safe. Section 2 - Union Cooperation. Union will cooperate with the City by encouraging all employees to perform their work in a safe manner. Section 3 - Safety Committees and Disputes. Safety committees composed of Management and Union stewards in the below listed organizations will meet no less than six (6) times annually to discuss safety practices, methods of reducing hazards, and to conduct safety training. This shall in no way remove the basic responsibility of safety from Management nor shall it in any way alter the responsibility of the employee to report unsafe conditions directly and immediately to his or her supervisor. Community Services Public Works Water-Gas-Wastewater Field Operations Electric Field Operations Water Quality Control City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 40 of 62 a) A committee composed of one facilities Management representative, one building inspection representative, two Union representatives, and the City Risk Manager will meet as needed concerning safety matters of the Civic Center. b) A ten-member Citywide Union/Management safety committee with equal Union and Management membership will meet upon call to review safety and occupational health standards and practices, discuss overall City safety and health problems, and to act as an advisory group to the departmental safety committees. The committee shall review all departmental safety programs and recommend change where necessary. c) In cases of dispute over safe working conditions the employee will first report such unsafe conditions to his or her supervisor and every attempt will be made to rectify the problem at this level. The employee may contact his or her steward to assist in the resolution of the dispute. If the problem cannot be resolved the Risk Manager will be contacted and the problem will be addressed through the interpretation of the basic safety rules and regulations. Should the problem not be resolved at this step, the grievance procedure will be utilized. Safety grievances shall be submitted at Step III. d) In response to recommendations from the Ergonomics Safety Committee, management will develop training workshops which include information on safe ergonomic work practices. Such workshops will be given at least two times per year. Upon release of Cal/OSHA regulations covering safe workplace ergonomic standards, management will immediately adopt such standards as party of its Injury Prevention Program. ARTICLE XIX - GRIEVANCE and APPEAL PROCEDURE Section 1 - General Provisions. The City and the Union recognize that early settlement of grievance or appeal of disciplinary actions is essential to sound employee-employer relations. The parties seek to establish a mutually satisfactory method for the settlement of employee grievances, or appeal of disciplinary action, or Union grievances as provided for below. In presenting a grievance or appeal of disciplinary action, the aggrieved and/or his or her representative is assured freedom from restraint, interference, coercion, discrimination or reprisal. Release time for investigation and processing a grievance or appeal of disciplinary action is designated in Article IV of this Memorandum of Agreement (MOA). Section 2 – Definitions. a) Grievance means an unresolved complaint or dispute regarding the application or interpretation of rules, regulations, policies, procedures, Memorandum of Agreement or City ordinances of resolution, relating to terms or conditions of employment, wages or fringe benefits, excluding however those provisions of this MOA which specifically provide that the decision of any City official shall be final, the City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 41 of 62 interpretation or application of those provisions not being subject to the grievance or appeal of disciplinary action procedure. b) Appeal of a disciplinary action means an appeal of any kind of disciplinary action against an employee covered by this Memorandum of Agreement. Discipline is defined as suspensions without pay, reductions in pay, demotion or discharge. Reprimands, transfers, reassignments, layoffs, and negative comments in performance evaluations are not considered discipline. Section 3 - Conduct of Grievance Procedure or Appeal of Disciplinary Action Procedure. a) An aggrieved employee may be represented by the Union or may represent himself/herself in preparing and presenting a grievance or appeal of disciplinary action at any level of review. Grievances or appeal of disciplinary action may also be presented by a group of employees. No grievance or appeal of disciplinary action settlement may be made in violation of an existing merit rule or memorandum of agreement. The Union will be notified prior to the implementation of any settlement made which affects the rights or conditions of other employees represented by the Union. The Union and the Steward will be copied on all written representation unit grievance or appeal of disciplinary action decisions. b) An employee and the representative steward, if any, may use a reasonable amount of work time so long as there is no disruption of work, in conferring about and presenting a grievance or appeal of disciplinary action. Requests for release time to prepare grievance or appeal of disciplinary action shall be made in accordance with the provisions of Article IV, Section 3. c) Beginning with the third step of the grievance or appeal of disciplinary action procedure, the Chief Steward or Alternate Chief Steward may assist in presenting a grievance or appeal of disciplinary action and may be present at all Step III, and IV grievance or appeal of disciplinary action hearings. d) The time limits specified in this Article may be extended by mutual agreement in writing of the aggrieved employee or the Union and the reviewer concerned. e) Should a decision not be rendered within a stipulated time limit, the grievant may immediately appeal to the next step. f) The grievance or appeal of disciplinary action may be considered settled if the decision of any step is not appealed within the specified time limit. g) If appropriate, the aggrieved employee(s) or the Union and the department head may mutually agree, in writing, to waive Step I and/or Step II of the grievance or appeal of disciplinary action procedure. City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 42 of 62 h) Grievances or appeal of disciplinary action shall be made in writing and submitted on forms provided by the City or on forms which are mutually agreeable to the City and the Union. The written grievance or appeal of disciplinary action shall contain clear, factual and concise language, including: (1) the name of the grievant; (2) a statement of the facts upon which the grievance or appeal of disciplinary action is based, including relevant dates, times and places; (3) specific provisions of this Agreement or specific City rules, policies, or procedures which the grievance or appeal of disciplinary action alleges has been violated; (4) a summary of any steps taken toward resolution; and (5) the action the grievant believes will resolve the grievance or appeal of disciplinary action. i) Any retroactivity on monetary grievances or appeal of disciplinary action shall be limited to the date of occurrence, except in no case will retroactivity be granted prior to three months before the grievance or appeal of disciplinary action was filed in writing. j) If the grievance is filed by more than one employee in the bargaining unit, the Union may, at its option, convert it to a Union grievance after Step II of the grievance procedure. The Union may also file a grievance in those instances when, under this Memorandum of Agreement, a Union right not directly related to an individual employee becomes the subject of dispute. Union grievances shall comply with all of the foregoing provisions and procedures. k) For purposes of time limits, “working days” are considered to be Monday through Friday, exclusive of City holidays. l) If a mutually agreed solution is reached during any step of this grievance or appeal of disciplinary action procedure, the agreement shall be placed in writing and signed by the City and the grievant or union. m) Upon request of either party, meetings to discuss the grievance or appeal of disciplinary action shall be held at any step in the grievance or appeal of disciplinary action procedure. n) The Parties may mutually agree in writing to an alternate method(s) of delivery for any communication for any notices required pursuant to Article XIX, Grievance Procedure, of a grievance or appeal of disciplinary action. Such agreement shall list the designated representative(s) for each party and the appropriate contact information for each Party, and describe the agreed-upon method(s) of communication. All designated representatives shall be copied on any communications. On all transmissions that are intended to conform to a time limit, the sender shall retain proof that the transmission was sent within that limit (for example, confirmation of electronic mail transmission or record of successful fax transmission) in the sender’s file for production if a dispute arises over existence or timing of the transmission. Either Party may designate new representatives or City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 43 of 62 terminate an alternate delivery agreement under this section by providing written notice, which shall be effective immediately, to the other. Section 4 - Grievance and Appeal Procedure. Step I. Informal Discussion. Within fifteen (15) working days after the incident or discovery of the incident on which the grievance or appeal of disciplinary action is based the aggrieved employee shall present the grievance action to his or her immediate supervisor and attempt to resolve the grievance through informal discussions. Every attempt will be made to settle the issue at this level. Step II. If the grievance is not resolved through the informal discussion in Step 1 or the employee wishes to appeal disciplinary action taken against him/her in the case of a grievance, the employee will reduce the grievance or appeal of disciplinary action to writing and submit copies to the Department head or his or her designee within fifteen (15) working days of the discussion with the immediate supervisor or within fifteen (15) working days from the receipt of a final disciplinary action. The Department Head or designee shall have fifteen (15) working days from the receipt of a written grievance or appeal of disciplinary action to review the matter and prepare a written statement. Step III. If the grievance or appeal of disciplinary action is not resolved and/or the aggrieved employee is not satisfied with the Step II decision, the grievant or disciplined employee may appeal to the Human Resource Director or his or her designee in writing within fifteen (15) working days of the receipt of the Department Head's response. The written appeal to the Human Resources level shall include a copy of the original grievance or appeal of disciplinary action, the Department Head’s decision at Step II, and a clear statement of the reasons for appeal. Within fifteen (15) working days, after receiving the written appeal, the Human Resource Director shall review the matter and prepare a written statement. If a mutually agreed solution is reached during this process the agreement shall be placed in writing and signed. Step IV. If the grievance or appeal of disciplinary action is not resolved at Step III, the aggrieved employee may choose between final and binding resolution of the grievance or appeal of disciplinary action through appeal to the City Manager or through appeal to final and binding arbitration. For the term of this Memorandum of Agreement, appeals to final and binding arbitration may be processed only with Union approval. All Step IV appeals must be filed in writing at the Human Resources Department Office within fifteen (15) working days of receipt of the Human Resource Director’s decision at Step 3. If the grievant or appellant elects final and binding resolution by the City Manager, the City Manager will choose the methods he or she considers appropriate to review and settle the grievance or appeal of disciplinary action. The City Manager shall render a written decision to all parties directly involved within fifteen (15) working days after receiving the grievant/appellant’s appeal. If the grievant/appellant elects final and binding arbitration in accordance with this provision, the parties shall mutually select an arbitrator within 90 days from the date of receipt of the written request for appeal. In the event the parties cannot agree on an arbitrator, they shall mutually request a panel of five City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 44 of 62 arbitrators from the California State Conciliation Service or from the American Arbitration Association if either party objects to the State Conciliation Service, and select an arbitrator by the alternate strike method. The arbitrator shall have jurisdiction and authority only to interpret, apply, or determine compliance with the provisions of this Memorandum of Agreement and such Merit System Rules, regulations, policies, procedures, City ordinances, resolutions relating to terms or conditions of employment, wages or fringe benefits, as may hereafter be in effect in the City insofar as may be necessary to the determination of grievances or appeal of disciplinary action appealed to the arbitrator. The arbitrator shall be without power to make any decision contrary to, or inconsistent with or modifying in any way, the terms of this Memorandum Of Agreement. The arbitrator shall be without authority to require the City to delegate or relinquish any powers which by State law or City Charter the City cannot delegate or relinquish. Where either party seeks arbitration and the other party claims the matter is not subject to the arbitration provisions of this Memorandum of Agreement, the issue of arbitrability shall first be decided by the arbitrator using the standards and criteria set forth in Article XX and without regard to the merits of the grievance or appeal of disciplinary action. If the issue is held to be arbitrable, the arbitration proceedings will be recessed for up to five working days during which the parties shall attempt to resolve the grievance. If no resolution is reached, the arbitrator will resume the hearing and hear and resolve the issue on the merits. Copies of the arbitrator's decision shall be submitted to the City, the aggrieved employee and the Union. All direct costs emanating from the arbitration procedure shall be shared equally by the City and the aggrieved employee or the Union. ARTICLE XX - UNSATISFACTORY WORK OR CONDUCT AND DISCIPLINARY ACTION The City has the right to discipline, demote, or discharge employees for cause. Non- probationary employees whose work or conduct is unsatisfactory but not sufficiently deficient to warrant discipline, demotion, or discharge will be given a written notification of unsatisfactory work or conduct and an opportunity to improve. Failure to correct deficiencies and improve to meet standards may result in discipline, demotion, or discharge. Discipline is defined as suspensions without pay, reduction in pay, demotion, or discharge. Reprimands, transfers, reassignments, layoffs, and negative comments in performance evaluations are not discipline and shall not be subject to the requirements of this Article. Section 1 - Preliminary Notice of Discipline. Prior to imposing disciplinary action, a supervisor shall provide an employee with preliminary written notice of the proposed disciplinary action. The notice of proposed disciplinary action must be in writing and served on the employee in person or by registered mail or Fed-Ex . The notice of disciplinary action shall include: a) Statement of the violations upon which the disciplinary action is based; City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 45 of 62 b) Intended effective date of the action; c) Statement of the cause thereof; d) Statement in ordinary and concise language of the act or the omissions upon which the causes are based; e) Copies of any documents or other written materials upon which the disciplinary action was fully or in part based. f) Statement advising the employee of his/her right to appeal from such action, and the right to union representation. g) The date and location of the Skelly meeting and the name of the Skelly Officer Section 2 - Skelly Meeting. The employee shall have the right to respond informally to the charges either verbally or in writing before the discipline is imposed. The employee shall have fifteen (15) working days from receipt of the notice to request this pre- disciplinary administrative review. The employee may request a reasonable extension of the time to respond for justifiable reasons. The Skelly meeting to listen to the verbal responses shall be scheduled with a City representative who is not the manager recommending the discipline (the “Skelly Officer”). The Skelly Officer shall render a final written decision (the “post-Skelly decision”) within fifteen (15) working days of receiving the employee’s response, if any, and shall deliver the post-Skelly decision to the employee by personal delivery or registered mail. The Skelly Officer may sustain, modify, or overturn the recommended disciplinary action. If the Skelly Officer sustains or modifies the disciplinary action, the action may be imposed after the post-Skelly decision is delivered to the employee. Section 3 – Appeals. Appeals of disciplinary action should be processed through the procedures outlined in Steps 2-4 of the grievance appeal of disciplinary action procedure (Article XIX, Section 4.) ARTICLE XXI - NO ABROGATION OF RIGHTS The parties acknowledge that Management rights as indicated in Section 1207D of the Merit System Rules and Regulations and all applicable State laws are neither abrogated nor made subject to negotiation by adoption of this MOA. ARTICLE XXII - OUTSIDE EMPLOYMENT The provisions of Article 4.7 of the Government Code of the State of California will govern the determination of incompatible outside employment. City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 46 of 62 ARTICLE XXIII – WORK STOPPAGE AND LOCKOUTS The City agrees that it will not lock out employees, and the Union agrees that it will not engage in any concerted work stoppage or slowdown during the term of this MOA. An employee shall not have the right to recognize the picket line of a labor organization when performing duties of an emergency nature. ARTICLE XXIV PROVISIONS OF THE LAW Section 1. Conformity and Separability of Provisions. This Memorandum of Agreement is subject to all current and future applicable Federal and State laws and Federal and State regulations and the Charter of the City of Palo Alto and the Constitution of the State of California. Should any of the provisions herein contained be rendered or declared invalid by reason of any existing State or Federal legislation, such invalidation of such part or portion of this Memorandum of Agreement shall not invalidate the remaining portions hereof, and they shall remain in full force and effect, insofar as such remaining portions are severable. Section 2. Merit Rules and Regulations. This Memorandum of Agreement shall become a part of the City of Palo Alto Merit Rules and Regulations applying to employees assigned to classifications in the SEIU unit. As applied to employees assigned to the SEIU unit, this Memorandum of Agreement shall prevail over any conflicting Merit Rules and Regulations. Section 3 - Resolution. The City and the Union agree by signing this Memorandum of Agreement that the wages, hours, rights and working conditions contained herein shall be continued in full force during the term of this Memorandum of Agreement except as otherwise provided for in the Memorandum of Agreement and shall be binding on both the City and the Union upon ratification by the Council of the City of Palo Alto and upon ratification by Union membership. ARTICLE XXV - COST REDUCTION PROGRAMS During the term of this agreement, the Union will aggressively assist Management in developing cost reduction programs. Such programs may include voluntary reduced hours/pay after this concept is studied by Management, and with such application as may be approved by Management. ARTICLE XXVI – TERM The Term of this Memorandum of Agreement shall commence on July 1, 2012 and shall expire on December 1, 2013. The Parties agree that they will commence negotiations over a successor to this Memorandum of Agreement no later than one hundred eighty (180) days before its expiration. If, at the time this Memorandum of Agreement would City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 47 of 62 otherwise expire, the parties are continuing to negotiate a successor Memorandum of Agreement, upon mutual agreement the terms and conditions of this Memorandum will continue in effect. EXECUTED: FOR LOCAL 521, SEIU, CTW: FOR CITY OF PALO ALTO: _______________________________ _______________________________ Susan Nye, Director James Keene, City Manager _______________________________ ________________________________ City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 48 of 62 _______________________________ ________________________________ ________________________________ ________________________________ ________________________________ _______________________________ ________________________________ ________________________________ ________________________________ ________________________________ City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 49 of 62 Appendix “A” - Salary Schedule This Appendix will be amended to reflect the following increases effective July 1, 2012 or upon adoption of the MOA, whichever is later, unless otherwise noted:  General base wage increase 1.65%  Lineperson/CS base increase 5%*  Lineperson/CS Lead base increase 5%*  Compliance Technician base increase 5%*  Compliance Lead base increase 5%*  Utility System Operator base increase 5%*  Installer-Repairer Lead base increase 2%*  Recreation Coordinator base increase 6.8%* Update the job descriptions listed above as presented; add the service retention steps of 2.5% of base for Dispatcher I, II and Lead at beginning of 7th year and beginning of 10th year. City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 50 of 62 APPENDIX B. APPRENTICESHIPS ELECTRICIAN/LINEPERSON - LINEPERSON/CABLE SPLICER APPRENTICE: May lead to Electrician or Lineperson/Cable Splicer positions. The Utilities Department is proposing to formalize the Apprenticeship programs in the Electric Section to develop journey level electricians and lineperson/cable splicers. The following are basic concepts/principles to be incorporated: 1. The administration and operation of the Apprentice Lineperson/Cable Splicer program will be managed by the Apprenticeship Committee which will be selected by the Manager of Electric Operations and comprised of two (2) bargaining unit members designated by Local 521 and two (2) Managers and the Manager of Electric Operations. The Manager of Electric Operations will maintain oversight of the program. The Apprenticeship Program will be subject to review and approval by the State of California Department of Industrial Relations Division of Apprenticeship Standards. 2. The journey level position will not be a promotional opportunity for anyone other than the apprentice underfilling the position, as long as that apprentice is successfully progressing through the program. 3. Employees in Electric Operations who qualify will be given first consideration for the apprentice position prior to other City classifications or recruiting from outside the City. 4. A letter of agreement will be entered into by the apprentice and the City identifying the terms and conditions of the program. 5. The program will normally require forty-eight (48) months to complete. 6. Normal progress through the program will be in periodic increments with formal evaluations. 7. Salary steps have been established to bridge the Electrical Assistant classification into the journey level classification. Employees hired into an Apprenticeship position on or before July 1, 2012 will continue to progress through the Apprenticeship steps and into the Lineperson journey rate at the same intervals as existed before July 1, 2012 for other employees in the Apprenticeship Program. This will result in the employee achieving the top step (step 5) of the Lineperson rate after completion of 36 months of the Apprenticeship Program. However, such employees will continue in the Apprenticeship program through the successful completion of the fourth year of the program. City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 51 of 62 Employees hired into an Apprenticeship position after July 1, 2012 will be paid at step 1 of the Apprenticeship range through the first year of the Apprenticeship. At the end of the first year, the employee will progress to step 2. The next step will occur at 18 months after the commencement of the Apprenticship; the next at 24 months; the next at 30 months; and the next at 36 months. Upon completion of the fourth year following commencement of the Apprenticeship, the employee will be paid at the top step (step 5) of the journey Lineperson wage. Successful completion of the program and movement into the Lineperson classification will not transpire until the employee has fulfilled all of the requirements outlined in the program content description and received the recommendation of the Apprenticeship Committee. 8. A process for initial selection and placement in the program will be established. The City and the Union agree to review or develop job descriptions to better reflect the qualification necessary to attract and retain successful candidates for this program. It is further agreed that the job descriptions will not warrant additional compensation. 9. A procedure for removing an unsuccessful apprentice from the program will be developed. 10. A task force including journey level persons will be assigned to determine the content and approach to specific elements of training. 11. Training will consist of on-the-job (OJT) and after hours elements (study and formal classes). Off-the-job training costs will be funded by tuition reimbursement and departmental funds. Personal time spent in off-the-job training will not be compensated. 12. The apprentice will be under the continuing guidance of an appropriately qualified journey level person during OJT. Such journey level persons will be assigned by Management from among volunteers and will receive no additional compensation. 13. Qualifications/progress will be verified by appropriately kept records. 14. Unless specifically stated otherwise, regular City personnel policies and MOA provisions will apply to the apprenticeship program. 15. This program may become a conceptual model for apprenticeships in other divisions or departments. City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 52 of 62 APPENDIX C. ALTERNATIVE 4/11 WORK SCHEDULE The City and Union have agreed to the following alternative work schedule for Public Safety Dispatchers: 1. The City agrees to maintain a minimum of 18 permanent dispatchers on paid status for this alternative 4/11 work schedule. If the Communications Unit falls below the minimum staffing levels for Communications for more than 120-days (4 months), the City and the Union will meet and confer over whether to continue the 4/11 schedule or revert to another schedule (such as 4/10) until such time as there are 18 permanent dispatchers on paid status. 2. The City agrees that in accordance with FLSA requirements the dispatchers will receive overtime for all hours worked outside of the regularly scheduled work hours of the 4/11 schedule. City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 53 of 62 APPENDIX D - DEPT/DIVISION CLASSIFICATION WORKDAY OR WORK WEEK VARIATION Section 1. Exceptions to Standard Workday or Work Week for SEIU Representation Unit: Community Services Arts & Culture Division Volunteer - Coordinator Each week (30 hours): 15 hours of unscheduled time; 15 hours of scheduled time Library Department Coordinator, Library Programs Librarian Senior Librarian Library Specialist Library Assistant Library Associate In a given workweek, staff may work three eight-hour days, one seven-hour day, and one nine-hour day. On a voluntary basis, staff may work five non-consecutive days within seven. Section 2. Rules Governing Flexible Work Hours. These rules and procedures are established pursuant to Article VI, Section 8, and are an application of Article VIII, Sections 1, 2, and 3 of the Memorandum of Agreement to the classifications of Coordinator, Recreation Programs; Producer, Arts & Sciences Programs; Program Assistant; Theater Specialist, in the Recreation and Arts & Culture Divisions of the Community Services Department, and the classifications of Associate Planner, Building Planning Technician, CDBG Coordinator, Engineer, Executive Secretary, Office Specialist, Planner, Senior Planner and Staff Secretary in the Planning and Community Environment Department. a) Flexible Work Schedule 1. Employees in the covered classification shall be permitted to arrange flexible work schedules with division approval, providing that such schedules shall include forty (40) hours per week. 2. Standard daily office hours shall be Monday through Friday, between the hours of 8:00 a.m. and 6:00 p.m. Flexible hours may occur for supervision of, and/or attendance at, evening programs, meetings, weekend events, or other programs. City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 54 of 62 1. Overtime 1. Emergency call-out work shall be defined as overtime work and compensated per standard City practices. 2. If the need arises for overtime work due to an unusual circumstance calling for extra hours or due to a special event, compensation shall be allowed with prior approval of the Director of Recreation, Director of Arts and Culture, or the Director of Planning and Community Environment, and shall be compensated for, as spelled out in the Memorandum of Agreement. Section 3. 2080 Plan a) Either the Union or the City may withdraw from the Plan by giving the other party 30 calendar days written notice. In the event of termination of the plan, the covered classifications will return to an 8-hour or other authorized workday as provided under Article VIII, Section 1, of this Memorandum of Agreement. b) Provisions of the 2080 Plan are as follows. To the extent that these provisions are in conflict with other provisions of the Memorandum of Agreement, these provisions will prevail. c) The 2080 Plan or “12 hours per Shift Schedule” is an authorized work schedule for the Electric System Operators and Water Quality Control Plant Operators. 2080 Plan Under this 2080 Plan, each employee's hours of work per year may not exceed 2,240. For scheduling purposes, and subject to the Merit System Rules and Regulations, the employee will be guaranteed not less than 2080 hours per year, or no less than 52 weeks at the normal number of hours worked per week. Any employee covered by the Plan who works up to 2,080 hours per year is compensated for all hours worked at the agreed upon rate. The City must pay overtime for all hours worked in excess of 12 in any workday, 56 hours in any work week, or 2080 hours in 52 weeks as the case may be. The rate of overtime will be at time and one-half the employee's regular rate of pay (or current contract overtime rate, if different). Shift Schedule The shift schedules combined must provide full 24-hour, seven (7) days per week coverage for the Utility Control Center and Water Quality Control Plan. The shift schedule shall be a rotating schedule. The Electric System Operators’ shift schedule will reach the equivalent of 40 hours per week in five weeks. The 12-hour shifts begin at 7:00 a.m. and 7:00 p.m. The Relief shift shall begin at 7:00 a.m. and end at 3:00 p.m. with lunch taken while working. The shift schedule shall be rotating schedule. The Water Quality Control Plant Operators’ shift schedule will reach the equivalent of 40 hours per week in two weeks. There will be four 12-hour shifts that begin at 6:00 a.m. and 6:00 p.m. The fifth shift will be a 4/10 shift that begins at 6 a.m. on three days, and at noon City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 55 of 62 on the fourth day. Pay Period Pay periods and workweek for the System Operations will begin Sunday at 7:01 a.m. Pay periods and workweek for the Water Quality Control Plan Operators will begin Saturday at 6:01 a.m. Wages Wages will be based on the City of Palo Alto Compensation Plan, which may vary from time to time as mutually agreed upon. Overtime Under the 2080 Plan, the City will pay overtime for all hours worked in excess of 12 in any workday, 56 in any work week, or 2080 in 52 weeks, as the case may be. Overtime will also be paid for hours worked when an employee is called in to work other than their regularly-scheduled shift. The overtime rate of pay will be one and one-half times (or current contract overtime rate, if different) of the employee's regular rate of pay. All overtime worked will be paid to the employee. No compensatory time off for overtime will be allowed with the exception of Water Quality Control Operations. Relief Employees This provision only applies to the Electric System Operators. The five Operators share the relief week evenly as they rotate through the five week cycle. Relief employee(s) will be used within the 12-hours shift schedule only when relieving for the System Operators on shift. When not relieving, they will work four eight-hour shifts. When a vacation relief week results in a 36-hour or 48-hour week, the operator working said week shall be paid at one and one-half (1½) time their normal rate of pay for hours that exceed thirty two (32) hours. Relief Duties This provision only applies to the Electric System Operators. An employee who is scheduled to perform relief duties shall be available for duty in revolving shifts on any day of the week and may be assigned for relief in any shift without advance notice. Relief employees will be paid standby pay during their relief week. Standby This provision only applies to the Electric System Operators. An employee who is on relief duties is covering standby, and will be compensated according to Article VIII, Section 7 (a) of the Memorandum of Agreement. If the relief employee is onvacation or otherwise unavailable for relief duties, the employee(s) on their three or four-day off period will be first on standby. Management reserves the right to utilize Management personnel as Operators on a short- term, as needed basis, if no Operator is available. City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 56 of 62 Filling Vacant Positions If the City elects to fill a vacancy other than by reassignment of the shift or the utilization of prior or succeeding shift personnel, the following procedure shall be used: Employees will be called according to their position on the Pre-arranged Overtime List (POL), with the person with the lowest balance being the first one called. The purpose of the POL is to fairly distribute the available opportunities. If an employee turns down the overtime, that amount will be added to the employee's POL balance. If an employee cannot be contacted for such assignment, the employee will not have any overtime added to their POL account balance. Shift Changes Shift changes caused by scheduled time off or sick leave will not be considered an official change in shift. Maximum Hours Worked No employee shall work more than 18 consecutive hours. Rest Period In a 12-hour workday, employees are entitled to a rest period of 8 consecutive hours after working 6 hours overtime during the 12 hours immediately before the regularly scheduled hours of work on a workday or non-workday. Holidays Employees who begin their day or night shift on an observed holiday will receive overtime premium in accordance with Article X, Section 3 of the Memorandum of Agreement. Employees who work a schedule where a regular day off falls on a holiday will be paid for the hours they would have normally worked on that day. Employees working for Water Quality Control Operations may accrue holiday time convertible to vacation. Sick Leave Sick leave will be earned as indicated in Article XII, Section 1(a) of this MOA, and shall be charged in increments of one hour. Floating Days Off Floating holidays will be made available to eligible employees and used pursuant to Article X, Section 5. Vacation An employee's total entitlement will be converted to hours (eight hours = one day). A workday will consist of 12 hours, and employees taking vacation will be charged 12 hours of use. Two week notification is required for any scheduled time off. Only one person at a time may be scheduled off. City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 57 of 62 It is the intention of the City that vacation be taken in units of one work week; however, with approval of his/her supervisor, an employee may use his/her accrued vacation in units of less than one work week. Meals Shift employees shall be permitted to eat their meals during work hours and shall not be allowed additional time, therefore at City expense. Shift Premium Shift premium will be handled in accordance with the current Memorandum of Agreement between the City and the Union, Article VIII, Section 8. Jury Duty Time off for jury duty which occurs on a regularly scheduled workday will result in the employee being credited with up to 12 hours worked, for pay purposes. Employees called for jury duty who are working the evening portion of the 12-hour schedule will be placed, for payroll and scheduling purposes, on the day shift for each scheduled day such employee is required to report for jury duty, and will not be required to work the evening 12-hour shift before or after being required to report for jury duty. However, such employee shall return to work on the day shift upon being released from such duty if there are at least four hours remaining prior to the end of the day shift. All other provisions of Article XII, Section 5, of the current Memorandum of Agreement shall apply. City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 58 of 62 APPENDIX E. IN-LIEU PREMIUMS 1. For employees in the following operations assigned to work schedules other than Monday through Friday, the calendar day will be considered the holiday for premium pay of in-lieu scheduling purposes: Communications Water Quality Control Animal Control Golf Course Utilities Services Landfill Open Space Electric System Operator 2. If December 24 and 31 fall on Sunday, then the preceding Friday will be designated for purposes of excused time off, except in the case of Community Services staff who may be scheduled to work on Saturday, in which case Saturday will be designated for purposes of excused time off. For Open Space and Library personnel, designation of excused time off will be based on Park and Library schedules and employee preference. City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 59 of 62 APPENDIX F. COMMUNICATIONS DIVISION PROMOTIONS 1. Promotional opportunities within the Communications Division will be carried out in compliance with procedures set forth in Article VI, Section 5, of the Memorandum of Agreement between the City and SEIU Local 521, except that: a. In sub-paragraph (e) of Article VI, Section 5, the term "seniority" shall be defined as division seniority. b. Division seniority will be calculated from an employee's first day of employment in the division, minus any unpaid leave. City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 60 of 62 APPENDIX G. SIDE LETTER REGARDING – RECOVERY OF CITY TRAINING COSTS In recognition of the extended training provided to affected employees, the Parties agree that the City may recover up to thirty percent (30%) of its cost for training employees, hired on or after July 1, 2012, in the Field Services Representative and Lineperson/Cable Splicer Apprentice classifications if the employee voluntarily terminates from the City or abandons his or her City employment before completing three years of City service in the Field Services Representative or Lineperson/Cable Splicer classification. The amount recovered shall reasonably reflect the City’s cost for the training, but will exclude all wage or benefit costs, and will be prorated to reflect the portion of the thirty-six (36) month post-training service period remaining at the time of the employee’s termination. As of July 1, 2012 thirty percent (30%) of the City’s cost for training employees in the Lineperson/Cable Splicer Apprenticeship Program was $30,000 for the three years of the pre-existing three year program. For the Field Service Representative, thirty percent (30%) of the City’s two year training cost was $5,550. The employee will be required to sign an agreement providing for reimbursement to the City as provided above on the form attached hereto as Appendix H. City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 61 of 62 APPENDIX H. RECOVERY OF TRAINING INVESTMENT AGREEMENT This Agreement is entered into between ___________ (“Employee”) and the City of Palo Alto (the “City”), as authorized by the Memorandum of Agreement between the City and SEIU Local 521. RECITALS A. The purpose of this Agreement is to limit the City’s risk that it will invest substantial sums in the Employee’s training but potentially lose the value of that training if the employee terminates without rendering substantial journey level service to the City after training. B. The City may require reimbursement from Employee of thirty percent (30%) of the total training cost for _______position, subject to abatement when specified service requirements are met. C. On or about (date) City extended to Employee a conditional offer of employment in the position of _________(position), subject to Employee’s agreement to complete the training necessary to perform the duties of _______ (position), under the terms of the training program. The ______(position) requires [description of training], which as of July 1, 2012 cost the City approximately $ over the course of the training. D. This agreement sets forth the Employee’s agreement to reimburse the City for the City’s investment in the Employee’s training if the employee voluntarily terminates from the City prior to the completion of thirty-six months of service following successful completion of the training. THEREFORE, the Parties agree to the terms set forth below: By signing this agreement, the Employee understands that s/he is bound by agrees to the following terms: 1. ____________________________________ (hereafter “Employee”) agrees that in training Employee for the position of _________________________________________, the City of Palo Alto (hereafter “City”) incurs a total cost of $___________. [this may need to be adjusted based on structure of training.] 2. Employee agrees that amounts recoverable under this agreement do not include Employee wage or benefit costs. 3. Employee agrees that in the event he/she voluntarily terminates or abandons his or her employment from the City prior to the completion of thirty-six (36) months of service following the successful completion of his or her apprenticeship, he/she will repay the City for the cost of training noted above, prorated to reflect the City of Palo Alto and SEIU Local 521 Tentative Agreement July 5, 2012 Page 62 of 62 months of service the Employee has completed following successful completion of their training. Employee agrees that for the purpose of this agreement, “time of service” shall begin on the date following the successful completion of the Employee’s training. 4. Employee agrees that the aggregate amount of repayment due will be determined based upon the attached proration table. 5. Employee agrees that repayment shall be due and made in equal monthly installments over the twelve (12) months immediately following termination, on the first of each such month. 6. If Employee does not fully reimburse the City for the amounts due when due, the entire aggregate amount owed will become immediately due, the employee will be deemed in default on this agreement and the City may initiate legal proceedings to collect said amounts. Employee will be responsible for all reasonable collection costs and attorney fees incurred by the City in undertaking such proceedings. The City may elect to forbear taking such action to allow Employee the opportunity to become current on the debt. Such forbearance will not alter the Employee’s default status or adversely affecting the City’s right to later initiate proceedings for recovery pursuant to this Agreement. 7. This agreement shall be effective on the date listed below. DATED: ___________________ ______________________________________ Employee ______________________________________ **Title**, City of Palo Alto SEIU (Regular) Effective 7/1/2012 Class Job Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Approx Monthly Approx Annual FLSA 206 Account Assistant 19.71 20.75 21.84 22.99 24.20 4,195.16 50,341.96 Non-Exempt 204 Acct Spec 23.03 24.24 25.51 26.86 28.27 4,899.94 58,799.24 Non-Exempt 207 Acct Spec-Lead 24.65 25.95 27.31 28.75 30.26 5,245.28 62,943.31 Non-Exempt 294 Administrative Associate I 22.64 23.83 25.08 26.40 27.79 4,817.13 57,805.51 Non-Exempt 295 Administrative Associate II 24.60 25.89 27.26 28.69 30.20 5,234.70 62,816.45 Non-Exempt 296 Administrative Associate III 26.36 27.75 29.21 30.75 32.37 5,610.00 67,319.95 Non-Exempt 277 Animal Attendant 20.80 21.89 23.04 24.26 25.53 4,425.98 53,111.72 Non-Exempt 276 Animal Control Off 22.28 23.45 24.69 25.99 27.35 4,741.36 56,896.35 Non-Exempt 263 Animal Services Spec 21.97 23.12 24.34 25.62 26.97 4,674.41 56,092.91 Non-Exempt 275 Animal Services Spec II 24.23 25.50 26.84 28.26 29.74 5,155.42 61,865.00 Non-Exempt 347 Planning Arborist 37.84 39.83 41.92 44.13 46.45 8,052.04 96,624.42 Non-Exempt 3470 Planning Arborist - S 37.84 39.83 41.92 44.13 46.45 8,052.04 96,624.42 Non-Exempt 244 Assoc Buyer 29.19 30.72 32.34 34.04 35.83 6,210.82 74,529.78 Non-Exempt 333 Assoc Engineer 34.55 36.37 38.28 40.30 42.42 7,352.55 88,230.57 Non-Exempt 353 Assoc Planner 32.73 34.45 36.26 38.17 40.18 6,964.92 83,579.07 Non-Exempt 247 Assoc Power Engr 36.79 38.72 40.76 42.90 45.16 7,828.27 93,939.24 Non-Exempt 269 Assoc Res Planner 37.47 39.45 41.52 43.71 46.01 7,974.51 95,694.12 Non-Exempt 330 Asst Engineer 31.29 32.93 34.67 36.49 38.41 6,658.35 79,900.15 Non-Exempt 256 Asst Power Engr 33.21 34.96 36.80 38.73 40.77 7,067.11 84,805.38 Non-Exempt 268 Asst Res Planner 33.83 35.61 37.48 39.46 41.53 7,199.26 86,391.12 Non-Exempt 249 Asst Storekeeper 20.93 22.03 23.19 24.41 25.70 4,454.17 53,450.01 Non-Exempt 299 Bldg Inspector 32.35 34.05 35.84 37.73 39.71 6,883.87 82,606.48 Non-Exempt 300 Bldg Inspector Spec 34.53 36.34 38.26 40.27 42.39 7,347.26 88,167.14 Non-Exempt 370 Bldg Serviceperson 19.66 20.70 21.79 22.93 24.14 4,184.59 50,215.10 Non-Exempt 371 Bldg Serviceperson-L 21.05 22.15 23.32 24.55 25.84 4,478.83 53,746.01 Non-Exempt 355 Bldg/Plg Technician 26.54 27.93 29.40 30.95 32.58 5,647.00 67,763.96 Non-Exempt 340 Business Analyst 40.80 42.95 45.21 47.59 50.09 8,682.81 104,193.69 Non-Exempt 3400 Business Analyst - S 40.80 42.95 45.21 47.59 50.09 8,682.81 104,193.69 Non-Exempt 212 Buyer 32.13 33.82 35.60 37.48 39.45 6,838.06 82,056.76 Non-Exempt 536 Cathodic Tech 33.34 35.10 36.94 38.89 40.93 7,095.31 85,143.67 Non-Exempt 464 Cathodic Protection Tech Assistant 27.97 29.44 30.99 32.62 34.34 5,952.16 71,425.96 Non-Exempt 208 CDBG Coordinator 34.98 36.82 38.76 40.80 42.95 7,444.17 89,330.02 Non-Exempt 408 Cement Finisher 27.62 29.07 30.60 32.21 33.91 5,877.81 70,533.72 Non-Exempt 409 Cement Finisher Lead 29.55 31.10 32.74 34.46 36.28 6,288.34 75,460.08 Non-Exempt 502 Chemist 32.70 34.42 36.23 38.13 40.14 6,957.87 83,494.50 Non-Exempt 297 Chf Elec Undg Inspec 35.78 37.67 39.65 41.74 43.93 7,615.08 91,380.91 Non-Exempt 239 Chf Inspec WGW 34.60 36.42 38.34 40.36 42.48 7,363.12 88,357.43 Non-Exempt 305 Chief Comm Tech 34.55 36.37 38.28 40.30 42.42 7,352.55 88,230.57 Non-Exempt 301 Code Enforcement Off 31.06 32.70 34.42 36.23 38.14 6,610.77 79,329.29 Non-Exempt 306 Comm Tech 33.84 35.62 37.49 39.47 41.54 7,201.02 86,412.26 Non-Exempt 702 Community Serv Offcr 22.70 23.90 25.15 26.48 27.87 4,831.22 57,974.65 Non-Exempt 320 Community Service Officer - Lead 24.28 25.56 26.91 28.32 29.81 5,167.75 62,013.01 Non-Exempt 341 Coor Trans Sys Mgmt 34.19 35.99 37.88 39.87 41.97 7,275.02 87,300.27 Non-Exempt 3410 Coor Trans Sys Mgmt - S 34.19 35.99 37.88 39.87 41.97 7,275.02 87,300.27 Non-Exempt 255 Coord Library Prog 30.93 32.56 34.27 36.08 37.98 6,582.58 78,991.00 Non-Exempt 342 Coord Pub Wks Proj 32.48 34.19 35.99 37.88 39.88 6,912.06 82,944.77 Non-Exempt 3420 Coord Pub Wks Proj - S 32.48 34.19 35.99 37.88 39.88 6,912.06 82,944.77 Non-Exempt 317 Coord Rec Prog 27.89 29.36 30.91 32.53 34.25 5,935.95 71,231.44 Non-Exempt 343 Coord Util Saf & Sec 36.90 38.84 40.89 43.04 45.31 7,852.94 94,235.24 Non-Exempt 3430 Coord Util Saf & Sec - S 36.90 38.84 40.89 43.04 45.31 7,852.94 94,235.24 Non-Exempt 344 Coord Utility Proj 35.07 36.92 38.86 40.91 43.06 7,463.55 89,562.60 Non-Exempt 3440 Coord Utility Proj - S 35.07 36.92 38.86 40.91 43.06 7,463.55 89,562.60 Non-Exempt 242 Coord Zero Waste 31.19 32.83 34.56 36.38 38.29 6,637.20 79,646.43 Non-Exempt 205 Court Liaison Officer 29.55 31.10 32.74 34.46 36.28 6,288.34 75,460.08 Non-Exempt 214 Crime Analyst 29.55 31.10 32.74 34.46 36.28 6,288.34 75,460.08 Non-Exempt 415 Cust Srv Specialist-L 28.78 30.29 31.89 33.57 35.33 6,124.48 73,493.76 Non-Exempt 218 Cust Svc Represent 24.47 25.75 27.11 28.54 30.04 5,206.51 62,478.16 Non-Exempt 217 Cust Svc Spec 26.91 28.32 29.82 31.38 33.04 5,726.28 68,715.40 Non-Exempt 225 Date Entry Operator 19.61 20.65 21.73 22.88 24.08 4,174.02 50,088.24 Non-Exempt 260 Desktop Technician 29.33 30.88 32.50 34.21 36.01 6,242.53 74,910.36 Non-Exempt 533 Elec Asst I 24.92 26.23 27.61 29.07 30.60 5,303.42 63,641.03 Non-Exempt 267 Elec Undgd Inspec 30.66 32.27 33.97 35.76 37.64 6,524.44 78,293.27 Non-Exempt 345 Electric Project Engineer 44.06 46.38 48.82 51.39 54.10 9,377.01 112,524.11 Non-Exempt 3450 Electric Project Engineer - S 44.06 46.38 48.82 51.39 54.10 9,377.01 112,524.11 Non-Exempt 292 Electric Underground Inspector - Lead 32.79 34.52 36.34 38.25 40.26 6,979.02 83,748.22 Non-Exempt CITY OF PALO ALTO 2012 SEIU Salary Schedule CITY OF PALO ALTO 2012 SEIU Salary Schedule 530 Electrician 33.34 35.10 36.94 38.89 40.93 7,095.31 85,143.67 Non-Exempt 529 Electrician-Appren 31.55 33.21 34.96 36.80 38.74 6,714.73 80,576.74 Non-Exempt 535 Electrician-Lead 35.69 37.57 39.55 41.63 43.82 7,595.69 91,148.34 Non-Exempt 399 Emergency Med Svs Data Specialist 26.36 27.75 29.21 30.75 32.37 5,610.00 67,319.95 Non-Exempt 311 Eng Tech I 22.91 24.12 25.38 26.72 28.13 4,875.27 58,503.23 Non-Exempt 332 Engineer 38.91 40.96 43.12 45.39 47.78 8,281.09 99,373.04 Non-Exempt 323 Engr Tech II 24.80 26.10 27.48 28.92 30.44 5,276.99 63,323.88 Non-Exempt 319 Engr Tech III 27.68 29.13 30.67 32.28 33.98 5,890.14 70,681.72 Non-Exempt 257 Environmental Spec 34.55 36.37 38.28 40.30 42.42 7,352.55 88,230.57 Non-Exempt 211 Equip Maint Serv Per 21.07 22.18 23.35 24.58 25.87 4,484.12 53,809.44 Non-Exempt 396 Equip Operator 24.17 25.44 26.78 28.19 29.67 5,143.08 61,717.00 Non-Exempt 397 Equip Operator - Lead 25.86 27.22 28.65 30.16 31.75 5,502.52 66,030.21 Non-Exempt 250 Equip Parts Tech 22.90 24.11 25.38 26.71 28.12 4,873.51 58,482.09 Non-Exempt 220 Executive Secretary 24.84 26.15 27.52 28.97 30.50 5,285.80 63,429.60 Non-Exempt 203 Facilities Asst 21.19 22.30 23.48 24.71 26.01 4,508.79 54,105.45 Non-Exempt 374 Facilities Carpenter 27.62 29.07 30.60 32.21 33.91 5,877.81 70,533.72 Non-Exempt 375 Facilities Elect 27.62 29.07 30.60 32.21 33.91 5,877.81 70,533.72 Non-Exempt 373 Facilities Maint-L 35.69 37.57 39.55 41.63 43.82 7,595.69 91,148.34 Non-Exempt 376 Facilities Mech 27.62 29.07 30.60 32.21 33.91 5,877.81 70,533.72 Non-Exempt 377 Facilities Painter 27.62 29.07 30.60 32.21 33.91 5,877.81 70,533.72 Non-Exempt 462 Field Service Pers WGW 23.25 24.47 25.76 27.12 28.54 4,947.51 59,370.11 Non-Exempt 383 Fleet Svcs Coord 27.30 28.73 30.25 31.84 33.51 5,809.09 69,709.13 Non-Exempt 489 Gas System Tech 25.33 26.66 28.06 29.54 31.09 5,389.75 64,677.05 Non-Exempt 463 Gas System Tech II 26.59 27.99 29.47 31.02 32.65 5,659.33 67,911.96 Non-Exempt 398 Geographic Inform Syst Specialist 34.25 36.05 37.95 39.95 42.05 7,289.12 87,469.42 Non-Exempt 456 Golf Cor Equip Mech 25.39 26.73 28.14 29.62 31.18 5,403.85 64,846.19 Non-Exempt 459 Golf Cor Mt Person 23.44 24.67 25.97 27.34 28.78 4,988.03 59,856.40 Non-Exempt 283 Graphic Designer 29.33 30.88 32.50 34.21 36.01 6,242.53 74,910.36 Non-Exempt 390 Heavy Equip Oper 27.36 28.80 30.32 31.92 33.60 5,823.19 69,878.28 Non-Exempt 391 Heavy Equip Oper-L 29.28 30.82 32.44 34.15 35.94 6,230.20 74,762.36 Non-Exempt 508 Ind Waste Inspec 29.03 30.56 32.16 33.86 35.64 6,177.34 74,128.06 Non-Exempt 258 Ind Waste Invtgtr 32.62 34.34 36.15 38.05 40.05 6,942.02 83,304.21 Non-Exempt 365 Industrial Waste Technician 26.21 27.59 29.04 30.57 32.18 5,578.28 66,939.37 Non-Exempt 227 Inspector, Field Svc 31.24 32.88 34.61 36.43 38.35 6,647.77 79,773.29 Non-Exempt 308 Instrum Elec 31.43 33.08 34.82 36.66 38.59 6,688.30 80,259.59 Non-Exempt 293 Junior Museum & Zoo Educator 24.95 26.27 27.65 29.11 30.64 5,310.47 63,725.60 Non-Exempt 503 Laboratory Tech Wqc 29.24 30.78 32.40 34.11 35.90 6,223.15 74,677.78 Non-Exempt 413 Landfill Technician 30.20 31.78 33.46 35.22 37.07 6,425.77 77,109.25 Non-Exempt 254 Librarian 24.98 26.29 27.68 29.13 30.67 5,315.75 63,789.03 Non-Exempt 252 Library Associate 23.11 24.32 25.60 26.95 28.37 4,917.56 59,010.67 Non-Exempt 222 Library Asst 20.03 21.08 22.19 23.36 24.59 4,262.12 51,145.40 Non-Exempt 253 Library Specialist 21.85 23.00 24.21 25.48 26.83 4,649.74 55,796.90 Non-Exempt 541 Lineper/Cable Spl 36.93 38.87 40.92 43.07 45.34 7,858.40 94,300.78 Non-Exempt 542 Lineper/Cable Spl-L 39.52 41.60 43.79 46.10 48.53 8,411.13 100,933.56 Non-Exempt 531 Lineperson/Cable Spl-T 35.18 37.03 38.98 41.03 43.19 7,486.83 89,841.96 Non-Exempt 532 Lineperson/Cable Spl-TL 37.63 39.61 41.70 43.89 46.20 8,008.14 96,097.62 Non-Exempt 528 Lnper/Cbl Spl-Appren 31.73 33.40 35.15 37.00 38.95 6,751.73 81,020.74 Non-Exempt 213 Mailing Svcs Spec 19.27 20.28 21.35 22.47 23.65 4,100.02 49,200.23 Non-Exempt 505 Maint Mech 29.57 31.13 32.77 34.49 36.31 6,293.63 75,523.51 Non-Exempt 291 Maintenance Mechanic-Welding 30.77 32.39 34.09 35.88 37.77 6,547.34 78,568.13 Non-Exempt 346 Management Assistant 28.64 30.15 31.73 33.40 35.16 6,094.53 73,134.33 Non-Exempt 3460 Management Assistant - S 28.64 30.15 31.73 33.40 35.16 6,094.53 73,134.33 Non-Exempt 216 Marketing Eng 38.91 40.96 43.12 45.39 47.78 8,281.09 99,373.04 Non-Exempt 241 Meter Reader 22.87 24.07 25.34 26.67 28.08 4,866.46 58,397.52 Non-Exempt 240 Meter Reader-Lead 24.47 25.75 27.11 28.54 30.04 5,206.51 62,478.16 Non-Exempt 369 Meter Shop Lead 27.10 28.52 30.03 31.61 33.27 5,766.81 69,201.69 Non-Exempt 384 Mobile Service Tech 30.77 32.39 34.09 35.88 37.77 6,547.34 78,568.13 Non-Exempt 380 Motor Equip Mech 26.35 27.73 29.19 30.73 32.35 5,606.47 67,277.66 Non-Exempt 381 Motor Equip Mech-L 31.35 33.00 34.73 36.56 38.48 6,670.68 80,048.16 Non-Exempt 286 Motor Equipment Mechanic I 27.13 28.56 30.06 31.65 33.31 5,773.86 69,286.27 Non-Exempt 287 Motor Equipment Mechanic II 29.30 30.84 32.47 34.18 35.97 6,235.48 74,825.78 Non-Exempt 201 Office Assistant 19.61 20.65 21.73 22.88 24.08 4,174.02 50,088.24 Non-Exempt 200 Office Specialist 21.33 22.45 23.63 24.88 26.19 4,538.74 54,464.88 Non-Exempt 230 Offset Equip Op 21.84 22.99 24.20 25.47 26.82 4,647.98 55,775.76 Non-Exempt 235 Offset Equip Op-Lead 23.37 24.60 25.90 27.26 28.70 4,973.94 59,687.25 Non-Exempt 452 Park Maint - Lead 27.18 28.61 30.12 31.70 33.37 5,784.43 69,413.13 Non-Exempt 451 Park Maint Person 23.44 24.67 25.97 27.34 28.78 4,988.03 59,856.40 Non-Exempt 281 Park Ranger 25.81 27.17 28.60 30.10 31.68 5,491.95 65,903.35 Non-Exempt 243 Parking Enf Off 22.37 23.55 24.79 26.09 27.47 4,760.74 57,128.93 Non-Exempt CITY OF PALO ALTO 2012 SEIU Salary Schedule 282 Parking Enf Off-L 23.93 25.19 26.51 27.91 29.38 5,091.99 61,103.85 Non-Exempt 460 Parks/Golf Crew-Lead 25.50 26.84 28.26 29.74 31.31 5,426.75 65,121.06 Non-Exempt 245 Parks/Open Spc Asst 9.07 9.54 10.05 10.57 11.13 1,929.32 23,151.80 Non-Exempt 348 Payroll Analyst 27.46 28.91 30.43 32.03 33.72 5,844.33 70,131.99 Non-Exempt 3480 Payroll Analyst - S 27.46 28.91 30.43 32.03 33.72 5,844.33 70,131.99 Non-Exempt 352 Planner 34.98 36.82 38.76 40.80 42.95 7,444.17 89,330.02 Non-Exempt 304 Plans Check Engr 37.79 39.78 41.87 44.07 46.39 8,041.46 96,497.56 Non-Exempt 210 Police Records Spec 21.33 22.45 23.63 24.88 26.19 4,538.74 54,464.88 Non-Exempt 321 Police Records Specialist - Lead 23.51 24.74 26.04 27.42 28.86 5,002.13 60,025.54 Non-Exempt 313 Police Records Specialist I 20.86 21.96 23.12 24.34 25.62 4,440.07 53,280.86 Non-Exempt 314 Police Records Specialist II 21.97 23.12 24.34 25.62 26.97 4,674.41 56,092.91 Non-Exempt 246 Power Engr 41.55 43.73 46.03 48.46 51.01 8,841.38 106,096.58 Non-Exempt 270 Prod Arts/Sci Prog 30.24 31.84 33.51 35.28 37.13 6,436.34 77,236.11 Non-Exempt 232 Prog-Analyst 32.96 34.70 36.52 38.44 40.47 7,014.26 84,171.08 Non-Exempt 231 Program Analyst 35.24 37.09 39.04 41.10 43.26 7,498.79 89,985.46 Non-Exempt 265 Program Assistant 23.52 24.76 26.06 27.43 28.88 5,005.65 60,067.83 Non-Exempt 302 Program Assistant I 24.95 26.27 27.65 29.11 30.64 5,310.47 63,725.60 Non-Exempt 303 Program Assistant II 26.83 28.24 29.72 31.29 32.93 5,708.66 68,503.97 Non-Exempt 368 Program Coordinator 26.11 27.49 28.93 30.46 32.06 5,557.14 66,685.65 Non-Exempt 349 Project Engineer 41.89 44.09 46.41 48.85 51.42 8,913.62 106,963.45 Non-Exempt 3490 Project Engineer - S 41.89 44.09 46.41 48.85 51.42 8,913.62 106,963.45 Non-Exempt 209 Property Evid Tech 22.72 23.91 25.17 26.50 27.89 4,834.75 58,016.94 Non-Exempt 237 Pub Safety Disp-Chief 33.76 35.54 37.41 39.38 41.45 7,185.16 86,221.97 Non-Exempt 238 Pub Safety Disp-Flex 25.96 27.33 28.77 30.28 31.88 5,525.42 66,305.08 Non-Exempt 236 Public Safety Disp 30.07 31.65 33.32 35.07 36.92 6,399.34 76,792.10 Non-Exempt 315 Public Safety Dispatcher - Lead 34.77 36.60 38.53 40.56 42.69 43.76 44.85 7,400.12 88,801.44 Non-Exempt 298 Public Safety Dispatcher I 29.42 30.97 32.59 34.31 36.12 37.02 37.94 6,260.15 75,121.79 Non-Exempt 316 Public Safety Dispatcher II 30.97 32.60 34.32 36.13 38.03 38.98 39.95 6,591.39 79,096.71 Non-Exempt 357 Real Property Agent 31.04 32.67 34.39 36.20 38.11 6,605.49 79,265.86 Non-Exempt 356 Real Property Analyst 24.95 26.26 27.64 29.10 30.63 5,308.71 63,704.46 Non-Exempt 414 Refuse Disp Atten 21.00 22.11 23.27 24.50 25.79 4,470.02 53,640.30 Non-Exempt 262 Resource Planner 44.46 46.80 49.26 51.86 54.59 9,461.58 113,538.98 Non-Exempt 366 Restoration Lead 29.55 31.10 32.74 34.46 36.28 6,288.34 75,460.08 Non-Exempt 385 Senior Fleet Services Coordinator 31.35 33.00 34.73 36.56 38.48 6,670.68 80,048.16 Non-Exempt 461 Sprinkler Sys Repr 23.84 25.09 26.41 27.80 29.27 5,072.61 60,871.27 Non-Exempt 360 Sr Buyer 32.48 34.19 35.99 37.88 39.88 6,912.06 82,944.77 Non-Exempt 3600 Sr Buyer - S 32.48 34.19 35.99 37.88 39.88 6,912.06 82,944.77 Non-Exempt 224 Sr Chemist 36.34 38.25 40.26 42.38 44.61 7,733.13 92,797.50 Non-Exempt 511 Sr Ind Waster Inspect 31.02 32.66 34.37 36.18 38.09 6,601.96 79,223.57 Non-Exempt 512 Sr Instrum Elect 34.33 36.14 38.04 40.05 42.15 7,306.74 87,680.85 Non-Exempt 251 Sr Librarian 28.37 29.86 31.43 33.08 34.83 6,036.38 72,436.60 Non-Exempt 504 Sr Mech 33.70 35.47 37.34 39.30 41.37 7,171.07 86,052.82 Non-Exempt 361 Sr Mkt Analyst 40.80 42.95 45.21 47.59 50.09 8,682.81 104,193.69 Non-Exempt 3610 Sr Mkt Analyst - S 40.80 42.95 45.21 47.59 50.09 8,682.81 104,193.69 Non-Exempt 506 Sr Operator Wqc 34.08 35.87 37.76 39.75 41.84 7,252.12 87,025.41 Non-Exempt 318 Sr Planner 40.41 42.54 44.78 47.13 49.62 8,600.00 103,199.96 Non-Exempt 280 Sr Ranger 28.56 30.06 31.64 33.31 35.06 6,076.91 72,922.90 Non-Exempt 261 Sr Util Field Svc Rep 30.41 32.01 33.70 35.47 37.34 6,471.58 77,658.97 Non-Exempt 266 Sr Util Syst Tech 32.89 34.63 36.45 38.37 40.39 7,000.16 84,001.93 Non-Exempt 501 Sr Water Sys Oper 34.08 35.87 37.76 39.75 41.84 7,252.12 87,025.41 Non-Exempt 405 St Maint Asst 20.98 22.08 23.25 24.47 25.76 4,464.74 53,576.87 Non-Exempt 392 St Sweeper Op 24.13 25.40 26.73 28.14 29.62 5,134.27 61,611.28 Non-Exempt 393 St Sweeper Op-Lead 25.82 27.17 28.60 30.11 31.69 5,493.71 65,924.50 Non-Exempt 221 Staff Secretary 23.18 24.40 25.69 27.04 28.46 4,933.41 59,200.96 Non-Exempt 248 Storekeeper 23.97 25.23 26.56 27.96 29.43 5,100.80 61,209.56 Non-Exempt 288 Storekeeper-L 25.66 27.01 28.43 29.93 31.50 5,460.23 65,522.78 Non-Exempt 326 Surveying Asst 29.05 30.58 32.19 33.89 35.67 6,182.62 74,191.49 Non-Exempt 325 Surveyor, Public Wks 31.61 33.27 35.03 36.87 38.81 6,727.06 80,724.74 Non-Exempt 309 System Op/Sched 36.13 38.03 40.03 42.14 44.36 7,689.08 92,268.92 Non-Exempt 362 Technologist 40.80 42.95 45.21 47.59 50.09 8,682.81 104,193.69 Non-Exempt 3620 Technologist - S 40.80 42.95 45.21 47.59 50.09 8,682.81 104,193.69 Non-Exempt 229 Theater Specialist 32.36 34.07 35.86 37.75 39.73 6,887.40 82,648.77 Non-Exempt 406 Traf Cont Maint I 24.57 25.86 27.22 28.65 30.16 5,227.66 62,731.87 Non-Exempt 412 Traf Cont Maint Ii 22.74 23.94 25.20 26.53 27.92 4,840.03 58,080.37 Non-Exempt 407 Traf Cont Maint-L 26.28 27.66 29.12 30.65 32.26 5,592.38 67,108.52 Non-Exempt 435 Tree Maint Asst 21.59 22.73 23.93 25.18 26.51 4,595.12 55,141.47 Non-Exempt 434 Tree Maintenance Specialist 25.19 26.52 27.92 29.39 30.93 5,361.56 64,338.76 Non-Exempt 430 Tree Trim/Ln Clr 24.81 26.11 27.49 28.93 30.45 5,278.75 63,345.03 Non-Exempt 431 Tree Trim/Ln Clr-L 26.54 27.93 29.40 30.95 32.58 5,647.00 67,763.96 Non-Exempt CITY OF PALO ALTO 2012 SEIU Salary Schedule 432 Tree Trm/Ln Clr Asst 23.37 24.60 25.90 27.26 28.70 4,973.94 59,687.25 Non-Exempt 400 Truck Driver 21.99 23.15 24.37 25.65 27.00 4,679.69 56,156.34 Non-Exempt 215 Util Acct Rep 31.25 32.89 34.62 36.44 38.36 6,649.54 79,794.44 Non-Exempt 223 Util Acctg Tech 24.88 26.19 27.57 29.02 30.55 5,294.61 63,535.32 Non-Exempt 272 Util Comp Tech 35.63 37.51 39.48 41.56 43.75 7,582.96 90,995.49 Non-Exempt 273 Util Comp Tech-L 38.13 40.13 42.24 44.47 46.81 8,113.51 97,362.06 Non-Exempt 219 Util Credit/Col Spec 29.64 31.20 32.84 34.57 36.39 6,307.72 75,692.66 Non-Exempt 310 Util Engr Estimator 36.58 38.50 40.53 42.66 44.91 7,784.22 93,410.66 Non-Exempt 486 Util Fld Svcs Rep 28.43 29.93 31.50 33.16 34.91 6,050.48 72,605.75 Non-Exempt 480 Util Install/Rep 27.73 29.19 30.72 32.34 34.04 5,900.71 70,808.58 Non-Exempt 481 Util Install/Rep Ast 23.51 24.75 26.05 27.43 28.87 5,003.89 60,046.69 Non-Exempt 479 Util Install/Rep-L 29.67 31.23 32.87 34.60 36.42 6,313.01 75,756.09 Non-Exempt 363 Util Key Acct Rep 37.84 39.83 41.92 44.13 46.45 8,052.04 96,624.42 Non-Exempt 271 Util Locator 26.10 27.47 28.92 30.44 32.04 5,553.61 66,643.37 Non-Exempt 364 Util Mkt Analyst 34.19 35.99 37.88 39.87 41.97 7,275.02 87,300.27 Non-Exempt 3640 Util Mkt Analyst - S 34.19 35.99 37.88 39.87 41.97 7,275.02 87,300.27 Non-Exempt 233 Util Rate Analyst 34.65 36.47 38.39 40.41 42.54 7,373.69 88,484.29 Non-Exempt 307 Util Syst Oper 35.28 37.13 39.09 41.15 43.31 7,507.16 90,085.98 Non-Exempt 284 Utilities Engineer Estimator Lead 39.14 41.20 43.37 45.65 48.05 8,328.66 99,943.91 Non-Exempt 3630 Utility Key Account Rep - S 37.84 39.83 41.92 44.13 46.45 8,052.04 96,624.42 Non-Exempt 290 Utl Install Repair Lead-Welding Cert 30.96 32.59 34.31 36.11 38.02 6,589.34 79,072.03 Non-Exempt 289 Utl Install Repair-Welding Cert 28.82 30.34 31.93 33.62 35.38 6,133.29 73,599.48 Non-Exempt 543 Overhead Underground Troubleman 36.95 38.90 40.94 43.10 45.37 7,863.51 94,362.10 Non-Exempt 259 Utl Syst Tech 30.77 32.39 34.09 35.88 37.77 6,547.34 78,568.13 Non-Exempt 278 Veterinarian Tech 22.76 23.96 25.22 26.55 27.94 4,843.55 58,122.66 Non-Exempt 274 Volunteer Coord 27.46 28.91 30.43 32.03 33.72 5,844.33 70,131.99 Non-Exempt 482 Water Meter Rep Asst 22.27 23.44 24.68 25.98 27.34 4,739.60 56,875.21 Non-Exempt 484 Water Meter Repair 24.66 25.96 27.33 28.77 30.28 5,248.80 62,985.59 Non-Exempt 499 Water Sys Oper I 26.31 27.70 29.15 30.69 32.30 5,599.42 67,193.09 Non-Exempt 507 Water Sys Oper II 30.05 31.64 33.30 35.05 36.90 6,395.82 76,749.82 Non-Exempt 500 WQC Plt Oper I 26.31 27.70 29.15 30.69 32.30 5,599.42 67,193.09 Non-Exempt 509 WQC Plt Oper II 30.05 31.64 33.30 35.05 36.90 6,395.82 76,749.82 Non-Exempt 510 WQC Plt Oper Trn 23.16 24.38 25.66 27.01 28.43 4,928.13 59,137.53 Non-Exempt 226 Wtr Mtr Crs Cn Tec 25.30 26.63 28.04 29.51 31.06 5,384.47 64,613.62 Non-Exempt City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 1 of 70 20112-20123 MEMORANDUM OF AGREEMENT City of Palo Alto and Local 521, SEIU, CTW PREAMBLE – This Memorandum of Agreement (hereinafter “MOA”is entered into by the City of Palo Alto (hereinafter referred to as the “City”) and Local 521 Service Employees International Union, CTW (hereinafter referred to as the “Union”). For the purposes of this MOA “employee” shall mean an employee assigned to a classification within the SEIU General Employee bargaining unit. This MOA is pursuant and subject to Sections 3500-3510 of the Government Code of the State of California and Chapter 12 of the City of Palo Alto Merit Rules and Regulations. ARTICLE I – RECOGNITION Section 1- Recognition. Pursuant to Sections 3500 - 3510 of the Government Code of the State of California and Chapter 12 of the City of Palo Alto Merit System Rules and Regulations, the City recognizes the Union as the exclusive representative of a representation unit consisting of all regular full and part-time employees in the classifications listed in Appendix A attached hereto. This unit shall for purposes of identification be titled the SEIU General Employees bargaining unit (hereinafter “General Unit). Section 2 - Protection of Unit. No supervisor will perform the work of an employee in the General Unit provided that there is an employee available who regularly performs such work. This does not preclude a supervisor from performing work of a minor nature or during bona fide emergencies or on a standby status when willing and qualified unit employees do not live within a reasonable response time of their work location. Supervisory personnel shall be called out to perform unscheduled work only when SEIU General unit employees are unavailable to perform such work or in cases of bona fide emergencies as defined in Article VIII, Section 2. In cases of bona fide emergencies, SEIU General unit employees shall be called out to complete the necessary work after the immediate emergency situation has been reasonably contained. ARTICLE II - NO DISCRIMINATION Section 1 - Discrimination. The City and Union agree that no person employed by or applying for employment hereto shall be discriminated against because of race, religion, creed, political affiliation, color, national origin, ancestry, union activity, age, disability, sexual orientation, or gender. Section 2- Right to Join the Union. The City and the Union agree to protect the rights of all employees to exercise their free choice to join the Union and to abide by the express provisions of applicable State and local laws. City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 2 of 70 ARTICLE III - UNION SECURITY Section 1- Notice. When a person is hired in any of the covered job classifications, the City shall notify that person that the Union is the recognized bargaining representative for the employee and give the employee a current copy of the Memorandum of Agreement. When a group employee orientation is held for new employees of the bargaining unit, a union representative may make a presentation to such bargaining unit employees for the purpose of explaining matters of representation. The presentation shall not exceed 15 minutes. Section 2 - Agency Shop. (a) Every employee in the bargaining unit covered by this Memorandum of Agreement shall: (1) remain a member in good standing of the Union; or (2) pay to the Union a monthly service fee, to be set by the union in accordance with applicable law, in an amount not to exceed the standard initiation fee, periodic dues, and general assessments of the organization; or, (3) in the case of an employee who certifies that he/she is a member of a recognized religion, body or sect which has historically held conscientious objection to joining or financially supporting public employee organizations, pay a charity fee, equal to the service fee, to a non-religious, non-labor charitable fund exempt from taxation under Section 501 (c)(3) of the Internal Revenue Code, chosen from one of the following three charitable organizations agreed to by the City and the Union (or any successor organization(s) agreed to by the City and the Union): United Way of California Community Health Charities Environmental Federation of California Union members may declare their intention to terminate Union membership by registered letter, return receipt requested, to the Director of Human Resources and the Union only during the 30-day period between 60 and 90 days before expiration of the MOA. (b) Employees who are newly hired into or who join the bargaining unit shall elect one of the above payment deduction options by completing and submitting the Employee Election form within thirty (30) calendar days of being hired into a classification covered by this MOA. (c) To qualify for deduction of the Charity Fee, the employee must certify to the Union and City that he/she is a member of a bona fide religious body or sect that has City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 3 of 70 historically held conscientious objection to joining or financially supporting public employee organizations. The employee is required to submit to the City and the Union a notarized letter signed by an official of the bona fide religion, body, or sect certifying that person’s membership. Upon request, the City shall provide to the Union a report of payments made by employees that qualify for the Charity Fee option in this subsection. (d) The deductions in this Section shall not apply during any period where an employee is in an unpaid status. (e) Involuntary Service Fee Deduction Process: The City shall deduct a service fee from the salary of each bargaining unit member who has not authorized a dues deduction, service fee deduction or charity fee in writing within the time stated in this Section, above. The Union certifies that it has consulted with knowledgeable legal counsel and has thereby determined that this involuntary service fee deduction process satisfies all constitutional and statutory requirements. (f) Agency shop may be rescinded only in accordance with the provision of state law. (g) Indemnification, Defense and Hold Harmless: Union agrees to indemnify and hold harmless the City and all officials, employees, and agents acting on its behalf, from any and all claims, actions, damages, costs, or expenses including all attorney’s fees and costs of defense in actions against the City, its officials, employees or agents as a result of actions taken or not taken by the City pursuant to the Agency Shop Arrangement. (h) Sign-up forms for deduction of union dues, service fees and charity fees shall be provided by the Union and approved by the City. Section 3 - Documentation. The City shall supply the Union with: (a) a monthly electronic file of the names, member/fee payer designation, addresses, classifications, monthly base pay, pay period number, Committee on Political Education (COPE) listed separately and last four digits of the Social Security number of all bargaining unit employees except those who file written notice with the Human Resources Department objecting to release of addresses, in which case information will be transmitted without address; and (b) a list of bargaining unit new hires, terminations and retirements which occurred during the previous month. The Union shall supply the City, and as applicable, the employees, with: City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 4 of 70 (a) documentation required by Government Code Section 3502.5 (f). Section 4 - Payroll Deduction. The City shall deduct Union membership dues, service fees, charity fees, and any other mutually agreed upon payroll deduction, which may include voluntary COPE check-off, from the bi-weekly pay of bargaining unit employees. The dues/fees deduction must be authorized in writing by the employee on an authorization form acceptable to the City and the Union, except as provided in Section 2(e), above. The dues deduction form shall include a check box for those employees who wish the Union to receive notification in the event of unsatisfactory work, conduct, or disciplinary action taken pursuant to Article XX. City shall remit the deducted dues or fees to the Union as soon as possible after deduction. Section 5 - Bulletin Boards and Departmental Mail. The Union shall have access to inter- office mail, existing bulletin boards in unit employee work areas, and existing Union-paid telephone answering device for the purpose of posting, transmitting, or distributing notice or announcements including notices of social events, recreational events, Union membership meetings, results of elections and reports of minutes of Union meetings. Any other material must have prior approval of the Human Resources Office. Action on approval will be taken within 24 hours of submission. The Union may send email messages only for the purposes set forth above. The IT Department will maintain the SEIU list and keep it current. The Union access to email is based on the following conditions: 1) emails to the SEIU list will be copied to the Human Resource Director at distribution; 2) emails to the SEIU list will only be sent by the SEIU Chapter Chair, Vice Chair, Chief Steward (s) or Secretary, 3) a maximum of 52 emails may be sent per year and a maximum of 12 emails may be sent by the SEIU Chapter Secretary. Section 6 - Access to Union Representatives. Representatives of the Union are authorized access to City work locations for the purpose of conducting business within the scope of representation, provided that no disruption of work is involved and the business transacted is other than recruiting of members or collecting of dues, and the representative must notify the Human Resources Department Office prior to entering the work location. Section 7 - Meeting Places. The Union shall have the right to reserve City meeting and conference rooms for use during lunch periods or other non-working hours. Such meeting places will be made available in conformity with City's regulations and subject to the limitations of prior commitment. Section 8 - Notification to the Union. (a) General. The Union shall be informed in advance in writing by Management before any proposed changes not covered by this Memorandum of Agreement are made in benefits, working conditions, or other terms and conditions of employment which require meet and confer or meet and consult process. City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 5 of 70 (b) Change in City’s Financial Situation. Should the City’s financial situation deteriorate and the possibility of layoffs result, the City Manager will give prior notice to and consult with the Union prior to recommending any layoffs to the City Council. (c) Vacancies and Temporary Personnel. The City agrees to notify SEIU Local 521 in writing when any irregular, temporary, hourly, provisional, special or extra help employee who consistently performs work typical of the SEIU Local 521 bargaining unit exceeds 1,000 hours of work within a 18-month period. The City agrees to notify SEIU Local 521 in writing when any position covered by this agreement is left vacant for more than 60 days. Through a separate meet and confer process, the City and Union will develop a way to convert long term, ongoing temporary-hourly positions to regular status. The City and Union will meet and confer regarding wages, benefits and terms and conditions of work. Section 9 - Union Logo. All materials and documents produced on Itek and metal plates, by the City print and reproduction shop, shall carry the Union label on the inside of covers or title pages in accordance with customary printing trades practices. Section 10 - Public Notice. The City shall make available to the Union in a timely manner copies of all City Council meeting agendas, minutes and schedule of meetings. These materials may be picked up at the City Clerk's Office during business hours. Section 11- Use of Agency Reports. Upon request, the City shall provide to the Union reports by department on the use of agency temporaries filling representation unit vacant positions, or doing work similar to that of representation unit classifications. Section 12 - Job Postings. The City shall incorporate the requirements of this Article when publicizing job announcements for classifications covered by this Memorandum of Agreement. Section 13 - Contracting Out. The City through the labor management process will kept the Union advised of the status of the budget process, including any formal budget proposal involving the contracting out of SEIU bargaining unit work traditionally performed by bargaining unit members at least thirty (30) days prior to the release of the City Manager’s proposed budget. The City will notify the Union in writing at least ninety (90) days prior to contracting work which has been traditionally performed by bargaining unit members, where such contracting will result in layoff or permanent reduction in hours. Within the ninety (90) day period of contracting out, both parties may offer alternatives to contracting out and meet and confer on the impact of such contracting out of a bargaining unit employee work. The City will notify the Union in writing when contracting out work which has been traditionally performed by bargaining unit workers, where such contracting out is expected to replace a laid off bargaining unit position that has been eliminated within ninety (90) days prior to the date of the planned contract work. When feasible, the City will provide such notice prior to the beginning City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 6 of 70 date of the planned contract work. The City will meet with the Union upon request to discuss alternatives. This provision does not apply to the filling of temporary vacancies of twelve (12) months or less duration. The City will provide the Union with a biannual list by department of all contract workers or vendors who are contracted by the City who perform work for the City. The City will make a reasonable effort to identify the names of the vendors on the list and the nature of the work provided by each vendor. ARTICLE IV - STEWARDS Section 1 - Union Officers. The Union agrees to notify the Director of Human Resources of those individuals designated as Union officers and stewards who receive and investigate grievances and represent employees before Management. Alternates may be designated to perform steward functions during the absences or unavailability of the steward. Section 2 - Number of Stewards. The number of stewards designated by the Union at a given time shall not exceed thirty-five (35). Section 3 - Release Time. It is agreed that, as long as there is prior notice as specified below to the Supervisor with no disruption of work, stewards shall be allowed reasonable release time away from their work duties, without loss of pay, to represent a unit employee or employees on grievances or matters within the scope of representation, including: (a) A meeting of the steward and an employee, or employees of that unit related to a grievance. (b) A meeting with Management. (c) Investigation and preparation of grievances. Grievances may be transmitted on City time. All steward release time shall be reported on time cards. Section 4 - Advance Notification Before Leaving Work Location. The Union agrees that the steward shall give no less than one (1) full business day advance notification to his/her supervisor before leaving the work location, except in those cases involving an unforeseeable circumstance that requires immediate union representation where advance notice cannot be given or when the relevant supervisor otherwise allows less notice. A supervisor may deny such a request for release from duty if the steward is needed to ensure real time delivery of services that the steward provides for the public or internal City customers and another employee who normally provides such services is not available on a straight time basis to relieve the steward, or in a bona fide emergency. If such denial occurs, the union may request the release of another of its designated stewards to perform the representation duties involved. Such request shall be processed City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 7 of 70 in accordance with the terms set forth in this section except that the requirement for a full business day advance notice to the replacement representative’s supervisor shall not apply. Nothing herein shall preclude the City from rescheduling a meeting it has scheduled, to facilitate the attendance of a steward who has requested release if, in the City’s judgment, such change can be undertaken without undermining the objectives of the meeting. Section 5 - Release Time. Three Union officers, who are City employees, shall be allowed a reasonable amount of release time off for purposes of meeting and conferring or meeting and consulting on matters within the scope of representation. All such time will be reported on timecards. Section 6 - Designated Union Space. Union stewards may utilize space in assigned desks for storage of Union materials. In the event stewards are not assigned desks the City will provide locker or other mutually agreeable space for storage of Union materials. Section 7- Union Officers and Release Time. Six union officers, who are City employees shall be allowed a reasonable amount of release time off for monthly Labor/Management Meetings. ARTICLE V - REDUCTION IN FORCE Section 1- Attrition. In the event of reductions in force, they shall be accomplished wherever possible through attrition. Section 2 - Advance Notice. When the City determines that layoffs are imminent resulting from reduction in force within the representation unit, the City will give the Union such advance notice as is reasonable under the circumstances. The notice will indicate the departments and divisions which will be affected and the circumstances requiring the layoffs. The City will furnish the Union with a current representation unit seniority list with notice of layoff. Section 3 - Order of Layoff. If the work force is reduced within a department, division, or office for reasons of change in duties or organization, abolition of position, shortage of work or funds, or completion of work, employees with the shortest length of service will be laid off first so long as employees retained are fully qualified, trained, and capable of performing remaining work. Length of service for the purpose of this article will be based on current service hire date of record in a regular classification with no adjustment for leaves of absence. Length of service ties will be determined by lot in a method agreeable to both parties. Employees laid off due to the above reasons will be given written notice at least thirty days prior to the reduction in force. A copy of such notice will be given to the Union. Such employees shall be offered priority employment rights to regular positions which are requisitioned and for which the employees are qualified for a period beginning with notification and ending sixty (60) days following the reduction in force. Employees transferred or reclassified under this section will be assigned to the City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 8 of 70 step in the new classification salary range closest to the employee's salary range at the time of reclassification. Employees laid off pursuant to this section shall receive the balance of all regular City compensation owed and severance pay equal to one month’s salary at the employee’s final rate of pay at termination. This does not include any amounts payable under Article V, Section 6, or PERS contribution refunds, if any. Section 4 - Seniority/Bumping Rights. Employees identified for layoff who have seniority (bumping) rights to their current or previously held classifications within the representation unit must declare their intention to exercise these rights in writing and submit to the Human Resources Department within seven (7) working days after written notification of layoff, otherwise bumping rights will automatically terminate. Bumping may occur within the representation unit, only to the least senior incumbent of the current or a previously held classification. To bump, the employee must be fully qualified, trained, and perform all work in the position. For purposes of this section of the Agreement, the term "working days" shall mean Mondays through Fridays, exclusive of holidays. Section 5 - Re-Employment List. The names of employees laid off or who through bumping changed classification in accordance with the provisions of this Article shall be entered upon a re-employment list in seniority order. The employee with the greatest seniority on the re-employment list, including those who exercised their bumping rights, shall be offered reinstatement first. Such notice of reinstatement shall be in writing with a copy to the employee, Union and Chapter Chair. If a laid off employee waives reinstatement or fails to respond within ten (10) working days of receipt of the notice, the employee shall be removed from the reemployment list. The person with the highest seniority including those who exercised their bumping rights on a re-employment list for a particular classification when a vacancy exists in that classification shall be offered the appointment. Names shall be carried on a re-employment list for a period of two (2) years from the date of separation from City services or change of classification through bumping. Upon re-employment within the two-year period, the employee's hire date of record at the time of layoff will be reinstated. Section 6 -Sick Leave Balances. Employees laid off pursuant to Section 2 who are reinstated to a regular position within sixty (60) days shall retain the sick leave balance they had at the time of layoff, unless they have received a sick leave payoff in accordance with Article XII. Section 7 - Hourly Employees Performing Duties. No representation unit employee will be laid off or remain on a re-employment list when hourly employees are performing substantially all the duties of the classification of the employee receiving a layoff notice or on a re-employment list. This provision shall not be applied to hourly positions which have been traditionally used for seasonal and part-time work. ARTICLE VI - PERSONNEL ACTIONS City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 9 of 70 Section 1 - Probation. Each new regular or part-time employee shall serve a probationary period of six (6) months, (twelve (12) months for the classifications of Public Safety Dispatcher, Chief Public Safety Dispatcher, Animal Control Officer, Communications Tech, Chief Communications Tech, Community Services Officer, Court Liaison Officer, Crime Analyst, Police Records Specialist, Property Evidence Technician, and Veterinarian Tech), commencing with the first day of his/her employment. The probationary period shall be regarded as a part of the testing process and shall be utilized for closely observing the employee's work, for securing the effective adjustment of a new employee to his/her position, and for rejecting any probationary employee whose performance does not meet the acceptable standards of work. At least one written performance appraisal will be given each probationary employee on or before expiration of the probationary period. Normally, this appraisal will be given at the end of the third month. In the event of termination prior to successful completion of the probationary period, such terminated employee shall be given written notice of his/her termination with the reasons for the termination stated therein. The Human Resources Department shall, upon request, afford an interview in a timely fashion to the terminated employee for discussion of the reasons for termination. The employee may, upon request, be accompanied by a Union representative. The interview shall not be deemed a hearing nor shall it obligate the City to reconsider or alter the termination action. The parties agree that probationary employees shall have all rights under this Memorandum of Agreement, including full and complete access to the grievance procedure, save and except for instances of suspension, demotion or termination. Section 2 - Personnel Evaluations. Personnel evaluations will be given to employees as scheduled by Management. Personnel evaluations are not appealable through the grievance procedure but, in the event of disagreement over content, the employee may request a review of the evaluation with the next higher level of Management, in consultation with the Human Resources Department. For purposes of this review, the employee may be represented by the Union. Decisions regarding evaluation appeal shall be made in writing within ten (10) working days following the review meeting. Section 3 - Personnel Files. Records of all disciplinary actions shall be kept in the central personnel file. Employees shall be entitled to sign and date all action forms in their personnel files. Employees are entitled to review their personnel files upon written request or to authorize, in writing, review by their Union representatives. An employee or the Union shall be allowed, upon reasonable request, copies of materials in an employee's personnel file relating to a grievance. Records of disciplinary actions, including references in a performance evaluation, shall be removed from a personnel file upon written request by the employee or in the normal process of file review after a period of three years, or sooner as mutually agreed by Management and the employee. Section 4 - Release of Information. The City will only release information to creditors or other persons upon prior identification of the inquirer and acceptable reasons for the inquiry. Information then given from personnel files is limited to verification of City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 10 of 70 employment, length of employment and verification and disclosure of salary range information. Release of more specific information may be authorized by the employee. Section 5 - Promotional Opportunities. (a) Posting. Promotional opportunities for classifications within the representation unit will be posted for at least ten (10) working days (Monday through Friday) prior to selection. Outside recruitment may be used for promotional openings and may begin at the time of posting, or any time thereafter. If, however, there are three or more qualified internal candidates within the department where the vacancy occurs, and those candidates successfully complete the selection process, outside candidates will not be considered. (b) Internal Candidate Eligibility. All non-probationary representation unit employees are eligible to apply for posted promotional opportunities, except that Management may waive this requirement for all probationary employees within the department where the promotional opportunity occurs. (c) Selection. The selection procedure for each promotional opening will be determined and administered by the Human Resources Department in consultation with the requisitioning department. Selection procedure and job description information will be available at the Human Resources Office at the time of posting. Efforts will be made to standardize tests and procedures where standardization is feasible and appropriate. Any tests used shall be reasonably predictive of success in the classification, and tests not be biased with respect to race, sex, sexual orientation, religion, creed, political affiliation, color, national origin, ancestry, or age. Selection procedures may include any or all of the following phases: (1) Application. Both inside and outside candidates must complete a City of Palo Alto application form specified by the Human Resources Department. Applications must be submitted to the Human Resources Office. (2) Screening. Applications will be screened by the Human Resources Department to ascertain whether candidates meet minimum requirements as outlined in the job description. Internal candidates deemed not to meet minimum requirements may submit additional qualification information writing within three working days of notification of requirement deficiency. (3) Performance Testing. Performance tests, such as typing, machinery or vehicle operation, skills demonstration, physical agility, etc., will be qualifying. Pass-fail points will be announced in advance for qualifying tests. If requested in writing prior to the test, performance test may be witnessed by Union steward. (4) Written Tests. Written achievement or aptitude tests will be qualifying. Pass-fail points will be announced in advance for qualifying tests. City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 11 of 70 (5) Interviews, Appraisals. Interviews may be conducted individually or by interview boards and will be qualifying. Interview boards shall be composed of qualified and unbiased people. Where interview boards are used, Management will include at least one bargaining unit employee on each board. If individual interview or an interview board is used, a majority of the individuals or board members must recommend a candidate in order for the candidate to qualify for appointment. Performance appraisals written by candidates' supervisors may be used as indicated in the selection procedure. (d) Recommended Candidates. Candidates who successfully complete all phases of the selection procedure will be recommended to the appointing authority. (e) Seniority. Seniority, for purposes of this Article, will be based on current service hire date of record in a regular classification with no adjustment for leaves of absence. Seniority ties will be determined in favor of the employee with the lowest employee number last four digits. Exceptions to this subsection may be established by mutual agreement on a departmental or divisional basis. Such exceptions are listed in Appendix G. (f) Appointment. The appointing authority will make appointments from among those recommended candidates who are most qualified as determined by objective review of selection procedure results and background materials. Where appointments are made from only internal candidates who are equally qualified as determined by objective review of selection procedure results and past performance, seniority will be the determining factor in promotional appointments. (g) Violations. Any violation of this Article may be appealed to the Human Resources Director in Step III of the grievance procedure. Section 6 - Rights. Unit employees applying for a vacant equal or lower paying position shall have the same rights as unit employees applying for a promotion. Section 7 - Apprentice Positions. (a) The City shall establish apprentice positions wherever feasible. Length of apprenticeship, type of training, and pay levels shall be by mutual agreement. Where possible, apprentice positions will underfill regular positions so that incumbents may automatically progress to the classification for which they are training upon successful completion of apprenticeship. The City will meet and confer with the Union before adding any new apprenticeship programs during the term of this agreement. All apprenticeship programs are listed in Appendix B. Section 8 - Rotation. In assigning employees to regular or special shifts, transfer, standby, overtime, or vacation selection, ability to perform the work, length of service and/or equitable rotation shall determine the assignments. In accordance with this City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 12 of 70 provision, more definitive rules may be arranged by mutual agreement of the Union and individual City departments. ARTICLE VII - PAY RATES AND PRACTICES Section 1. Salary. The base salary rates and ranges for job classifications covered by this bargaining unit are as set forth in Appendix A attached hereto. Said rates and ranges reflect an increase of one and sixty-five one-hundredths percent (1.65%) of June 30, 2012 base rates effective on the first day of the pay period including July 1, 2012 or on adoption of this MOA, whichever is later. Notwithstanding the paragraph immediately above, and subject to the requirements of Government Code Section 3500, et. seq., if the parties do not reach a tentative agreement by July 5, 2012, that is subsequently ratified by the Union membership and City Council by August 1, 2012, the City will reduce the base wage rates of employees covered by this Memorandum of Agreement, as adjusted in accordance with the foregoing paragraph of this Section, effective on the later MOA adoption date, or on a unilateral implementation date determined by the City in accordance with Government Code Section 3500, et. seq. The reduction will be in a percentage amount reasonably calculated by the City as sufficient to ensure that by the close of business June 30, 2013 the City will, for the fiscal year that ends June 30, 2013, obtain as much in reduced costs from decreased PERS employee pension costs, the elimination of floating holidays, the increase in employee medical contributions, and the reduction in the alternative medical benefit as had the Parties agreed upon and implemented the terms of Article X, Section 5 (Floating Days), Article XIV, section 1, and Article XV, Section 2 (Employee Pension Contributions) on July 1, 2012. Section 2 - Step Increases. Merit advancements from the first salary step to the second salary step shall be granted at six-month intervals and between second and subsequent steps at one-year intervals, if the affected employee has demonstrated continued improvement and efficient and effective service. For the purpose of determining step time requirements, time will commence on the first day of the month coinciding with or following entrance onto a salary step. Step increases shall be effective on the first day of the payroll period in which the time requirements have been met. Section 3 -Working Out of Classification. The term "working out of classification" is defined as a Management authorized full-time assignment to a budgeted position on a temporary basis wherein all significant duties are performed by an individual holding a classification within a lower compensation range. Pay for working out of classification shall be as follows: (a) Employees appointed to an "out of classification" will receive acting pay within the range of the higher classification beginning the first day of the assignment and shall City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 13 of 70 be paid for all hours worked in the higher classification provided employee works a minimum of four (4) hours. Where out-of-class appointments last for more than 90 days, and whenever feasible, out-of-class appointment will be rotated among qualified interested employees in the work group. Employees will receive 5% premium pay for all assigned out of class pay for work within SEIU Classifications with the exception of lead assignments where the out of class pay will result in a 7% premium pay. Out-of-classification provisions do not apply to work assignments performed in connection with specific predetermined apprenticeship or training programs, or declared conditions of public peril and/or disaster. Section 4 - Classification Changes. (a) During the course of this agreement, the Union and affected employees shall be notified in advance of any contemplated changes in classification description, wage range or steps. Such changes shall be subject to the meet and confer process. Such meet and confer process shall be concluded within no more than thirty (30) days following delivery of the City’s notice to the Union. If the Union and the City cannot reach agreement on the appropriate pay level from a job so reclassified, the Union may, within ten (10) City business days following the conclusion of the meet and confer process described above by delivery of written notice to the Human Resources Director, refer the dispute over the proposed wage range or steps to arbitration at Step IV of the Grievance Procedure set forth at Article XIX of this Memorandum of Agreement. Section 5- Reclassification Requests. (a) An employee or his/her representative may request in writing a re-evaluation of his/her job based on significant permanent changes in job content or significant discrepancies between job content and classification description. The request must be in writing, contain justification and may be made only on an annual basis during the period of September 10 through October 10. A statement by management that a job reevaluation request will be submitted with the departmental budget does not relieve an employee from the responsibility of submitting his/her own request during this period. The Human Resources Director or his or her designee will initially respond to such requests within ninety (90) calendar days by notice to the employee and the union; however, this timeline may be extended if necessary. Such response shall include any reclassification to a different classification or changes in description that the City believes are warranted and any related changes in applicable pay range or steps. If meetings are held, the employee may request representation. If a reclassification is approved and results in an increase in salary, it shall be retroactive to the date the Employee or Union filed the request for the reclassification. (b) If the employee or Union disagrees with the accuracy of the description of duties resulting from the study conducted pursuant to subsection (a) of this Section or with City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 14 of 70 the wage range or steps assigned by the City as a result of the study, the employee or Union may, within ten (10) City business days of delivery of notice of such determination, appeal such decision under step IV of Article XIX, Grievance Procedure. (c) In a dispute under Section 4(a) or section 5(b) above, the arbitrator shall render his or her decision on the appropriate wage range or steps within twenty-one (21) days after the initial hearing date. The same time line will be observed for disputes over the accuracy of the revised classification description. The parties will notify the arbitrator of this deadline at the time of the arbitrator’s selection. In reaching a decision on wage range and steps under Section 4(a) or 5(b) above, the arbitrator shall base his or her award on the factors traditionally taken into account in the establishment of compensation. When deciding a dispute over the accuracy of the revised classification description under section 5(b) above, the arbitrator shall identify the modifications of the pre-existing classification necessary to accurately reflect the permanent changes, if any, that have been implemented. Upon receipt of the arbitrator’s award, the City shall implement the revised classification and wage range or steps as provided in the award except as provided under subsection 5(c) of this section below. Not withstanding an arbitrator’s award pursuant to any appeal process, the City retains the right to forego implementing the changes and the proposed changes shall revert to the status quo as it existed before those changes in duties occurred or were proposed. (d) An employee may submit a request for reclassification for the same classification no more than once every twenty-four (24) months. Section 6 -Advance of Vacation Pay. Vacation pay shall be made available in advance of regular payday, provided that employee requests such advance in writing to the Finance Department at least two weeks prior to his/her vacation date. The employee's supervisor must verify vacation date on the request. Section 7 - Assignment to a Lead Position. All vacancies in lead positions shall be filled in accordance with Article VI, Section 5. The pay range for the lead position shall be seven percent above the pay step of the highest paid employee on the crew. Departmental exceptions for filling lead positions on a rotational basis for training and development purposes may be arranged by mutual agreement of the Union and individual City departments. Current exceptions are listed in Appendix C. Section 8 - Realignments and Survey Data Base. (a) Management and the Union have agreed to a compensation survey data base structure which identifies specific benchmark classifications for job families, classifications within the job families of each benchmark classification, survey agencies and survey classification matches. Survey Cities include: City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 15 of 70 Alameda Hayward San Mateo Berkeley Mountain View Santa Clara Daly City Redwood City S. San Francisco Fremont San Jose Sunnyvale If, in the opinion of the Human Resources Director (or designee), the employer list will not permit the production of a survey report that includes data from at least four (4) employers that employ employees in a classification comparable to the classification surveyed by the City, the Human Resources Director (or designee) will attempt to identify the other employers in the relevant recruitment area that employ workers in a comparable classification so that data from at least five (5) surveyed employers will be included in the study, if feasible. Such employer may include any public or private employer. The database is intended to provide one source of information concerning how the compensation paid to employees in bargaining unit job classifications compares to that paid by other employers. The City will update the survey database and send the Union a copy six weeks before expiration of this agreement. This survey will be considered in connection with special adjustment proposals in successor agreement negotiations. By agreeing to a survey database, neither Union nor Management is under obligation to propose or agree to special adjustments. ARTICLE VIII - HOURS OF WORK, OVERTIME, PREMIUM PAY Section 1- Work Week and Work Day. The standard workday for regular employees shall be eight hours to be worked within a maximum of nine hours (five-day work week) or ten hours to be worked within a maximum of eleven (four-day work week) or nine hours to be worked within a maximum of ten for four days with a fifth day of four hours (four and one-half day work week); or, within a fourteen-day period, nine hours to be worked within a maximum of ten hours for one day and eight hours to be worked within a maximum of ten hours for one day, with the work week scheduled to begin so that forty hours are worked within each seven days of the fourteen-day period (9/80 plan, with forty-hour work weeks), or any other schedule that results in a 40-hour work week, or fits within the parameters of an FLSA 2080 Plan. The "9/80 plan" may not be used in any application that requires entitlement to FLSA overtime for working the regular work week. With the exception of the "9/80 plan" as described above and the 4/11 Dispatcher Plan, the standard work week shall be forty hours to be worked within five consecutive days. Additional exceptions to the above are listed in Appendix D. The Union shall be notified of any further exceptions to this section in accordance with Article III, Section 8. The City and the Union agree that the availability of alternate/flexible work schedules is a valuable benefit in that they promote job satisfaction while also reducing traffic congestion and air pollution. During the term of this agreement, employees, subject to the conditions of their job assignment, may propose an alternate work schedule as listed under this Section. Such City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 16 of 70 proposals must be made to the department head through the immediate supervisor. Serious consideration will be given to the feasibility and productivity of such proposals, however Management retains the right to determine scheduling needs. Section 2 - Overtime Work. (a) Overtime work for all unit employees shall be defined as any time worked beyond the standard workday or beyond the standard work week. Emergency overtime is defined as unplanned overtime work arising out of situations involving real loss of service or property or personal danger. Emergency overtime does not include: (i) overtime work resulting from personnel replacement for purposes of maintaining scheduled staffing; (ii) overtime work which is planned in advance; (iii) overtime work resulting from being held over for up to four hours to finish work performed during the regular shift. (b) Compensation to employees working overtime will be in the form of additional pay at the rate of one and one-half times. Two times regular rate will be paid for billable customer convenience overtime and emergency overtime as defined in subsection (a) above) the employee's applicable hourly salary with the exception that an employee may request and, upon approval, be granted compensatory time off at the rate of one and one-half hours for each hour of overtime worked, subject to the limitations of applicable state and federal laws. In the event compensatory time off is used as the method of compensating for Overtime, the time off will be taken prior to the end of the quarter following the quarter in which the overtime has been worked. In the event the employee is denied this provision, he/she will be compensated in pay for such time at the appropriate rate specified by these sections. Or at the employee's option, the earned compensatory time will be added to the employee's vacation balance. (c) All time for which pay is received shall count as hours actually worked for the computation of regular overtime pay; however, non-productive time will not be included in computation of any additional FLSA premiums. (d) When an employee is required to work 6 or more hours of overtime (either emergency or pre-arranged) during the 16 hour period immediately preceding the beginning of the employee’s regular shift on a workday, the employee shall be entitled to an eight- hour rest period before returning to work. If the rest period overlaps into the second half of the work day, the employee may be given (with supervisor approval) the remaining time off (up to a maximum of 3 hours) at the straight time rate of pay. Any portion of the rest period falling within the employee’s work shift will be considered as hours worked and compensated at the straight time rate. City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 17 of 70 (e) If non-emergency overtime is canceled without at least 40 clock hours notice, the City shall pay the affected employees two (2) hours' pay at time and one-half. (f) Employees working overtime who are too fatigued to continue or return to work, for safety reasons will be released from duty without compensation. Section 3 -Work Shifts. All employees shall be assigned to work shifts with scheduled starting and quitting times. Should conditions necessitate a change in starting and quitting times, the Union will be notified ten (10) working days in advance and permitted to discuss such changes with the City. This, however, shall not preclude the City's right to effect schedule changes dictated by operational necessity. This section does not apply to overtime scheduling. Section 4 - City-Paid Meals. (a) Emergency overtime meals. For purposes of this section, emergency overtime is defined as unplanned overtime arising out of situations involving real loss of service or property or personal danger. The City agrees to reimburse for meals in the amount of $10 for breakfast, $15 for lunch, and $20 for dinner and will provide meals in the following emergency overtime situations: (1) When an employee is called back and is on duty for a period of three consecutive hours, and thereafter at intervals of five hours, but not more than six hours, until the continuous overtime assignment ends. OR, (2) When an employee is held over on duty so that his/her overtime assignment extends two hours after shift end, and thereafter at intervals of five hours, but not more than six hours, until the continuous overtime assignment ends. OR, (3) When an employee is called out two hours or more before a regularly scheduled day shift and works the regularly scheduled shift, he/she will be entitled to breakfast and lunch. Lunches will be consumed on employee's own time. No in- lieu pay will be made for meals not taken. This sub-section does not apply if already covered in Section 4(a)(1) above. (4) When recalled two hours or less after the end of a regular shift, unless assigned to standby. (b) Non-emergency overtime meals. The City will provide meals for personnel assigned to non-emergency overtime work where the assignment extends more than City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 18 of 70 two hours after the regular or overtime shift end and at intervals of five hours thereafter. (c) With regard to (a) and (b) above, the City agrees to reimburse for meals in the amount of $10 for breakfast, $15 for lunch, and $20 for dinner. Where possible, the City will arrange purchase orders at mutually agreeable restaurants. The time necessarily taken to consume a meal provided under this section shall be considered as time worked to a maximum of one hour, except as noted in (a) (3). (d) With regard to (a) and (b) above, in the event an employee is to be provided a meal or meals pursuant to this section and such meal(s) are not provided due to working conditions, the employee shall have the option of receiving for each meal not provided an additional one hour of overtime compensation in lieu of such meal. This hour will not be considered as time worked or part of the rest period, but will be applied to qualify for the rest period. (e) Emergency overtime meals for Public Safety Dispatchers. The Police Department will provide meals to employees in an emergency overtime situation involving real or potential loss of service or personal danger. (1) When an employee is called back and is on duty for a period of three consecutive hours, and thereafter at intervals of five hours, but not more than six hours, until the continuous overtime assignment ends. (2) When an employee is held over on duty so that his/her overtime assignment extends two hours after shift end, and thereafter at intervals of five hours, but not more than six hours, until the continuous overtime assignment ends. (3) When an employee is called out two hours or more before a regularly scheduled shift. The employee will be entitled to two meals, the second meal will be consumed on the employee's own time. No in-lieu pay will be made for meals not taken. (4) When recalled two hours or less after the end of a regular shift, unless assigned to standby. (f) Non-emergency overtime meals for Public Safety Dispatchers. The Police Department will provide meals to employees in non-emergency situations where the assignment extends more than two hours after the regular or overtime shift end and at intervals of five hours thereafter. If the City is unable to provide a meal, the City agrees to reimburse for meals in the amount of $10 for breakfast, $15 for lunch, and $20 for dinner. This policy only applies when an employee is held over, either voluntary or mandated, on duty beyond a scheduled regular or overtime shift. City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 19 of 70 Section 5 - Break Periods. All employees shall be granted a break period or coffee break limited to 15 minutes during each four hours of work. Departments may make reasonable rules concerning break period scheduling. Break periods not taken shall be waived. Section 6-Clean-Up Time. All employees whose work causes their person or clothing to become soiled shall be provided with reasonable time before lunch and at shift end for wash-up purposes. Section 7 - Standby Pay, Call-Out Pay. (a) Standby Compensation. Employees performing standby duty shall be compensated at the daily rates established below: Monday through Friday $50 Saturday, Sunday, Holidays $73 (b) Minimum Call-Out Pay. Employees not otherwise excluded from receiving overtime pay who are called out to perform work shall be compensated for at least two hours' pay from the time of the call-out for each occurrence at the appropriate overtime rate. The two-hour minimum does not apply to employees called out to work while earning pay for being in a standby status unless called out to perform billable customer convenience work in which case the two-hour minimum will apply. Section 8 - Night Shift Premium. Night shift premium of $1.44 per hour shall be paid to employees for work performed between 6:00 p.m. and 8:00 a.m. This premium shall not apply to an employee whose schedule does not qualify for shift differential who requests an earlier scheduled start time that would otherwise qualify the employee for the premium. A minimum of two hours must be worked between 6 p.m. and 8:00 a.m. to qualify for the premium. Employees who regularly work night shifts shall receive appropriate night shift premiums, relating to night shift hours worked, in addition to base pay for holidays, sick leave and vacation. Night shift premium does not apply for overtime situations unless overtime is approved to replace an employee who would have otherwise received a night shift premium. Section 9 - Bilingual Premium. $35 per pay period shall be paid to a bilingual employee whose abilities have been determined by the Human Resource Director as qualifying to fill positions requiring bilingual speaking and/or writing ability when the employee regularly performs such duties. The Human Resource Director will determine the number, timing, location and duration of the assignments receiving the additional pay provided herein and which languages are needed. Sign language shall be recognized as a bilingual skill under this Article. Disagreements over the designation of positions will be referred first to the Labor Management Committee. If a disagreement still exists it will be referred to the Grievance Procedure. City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 20 of 70 Section 10 - Communications Training Officer (CTO) Compensation. Public Safety Dispatchers and Chief Public Safety Dispatchers identified by Management to work as a Police Officers Standards and Training (POST) certified CTO will be compensated at a premium pay rate of five (5) percent. The premium pay is provided only for those hours spent as a CTO training a probationary dispatcher while on-duty in the Dispatch Center. ARTICLE IX - UNIFORMS AND TOOL ALLOWANCES Section 1 - Uniforms. (a) The City will provide uniforms, coveralls or shop coats on a weekly basis, or as otherwise furnished, for the following jobs and/or classifications and any positions necessary or required as determined by management. Animal Control Officer Assistant Storekeeper Auto Service Mechanic Building Service Person - Lead Building Service Person Cathodic Technician Cement Finisher - Lead Cement Finisher Chemist Community Service Officer () Electrical Assistant Electrician Apprentice Electrician Lead Engineering Technician III - Refuse Equipment Operator Equipment Operator - Lead Facilities Carpenter Facilities Electrician Facilities Maintenance - Lead Facilities Mechanic Facilities Painter Field Serviceperson Gas System Shop/Field Repairer Gas System Technician I Gas System Technician II Golf Course Equipment Mechanic Golf Course Maintenance Person Heavy Equipment Operator - Lead Heavy Equipment Operator Industrial Waste Inspector Industrial Waste Investigator City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 21 of 70 Instrumentation Electrician Laboratory Technician, Water Quality Control Line Person/Cable Splicer Line Person/Cable Splicer - Lead Mail Services Specialist Maintenance Mechanic/Maintenance Mechanic, Water Quality Control Mechanical Unit Repairer Meter Reader Meter Reader – Lead Mobile Service Technician Motor Equipment Mechanic - Lead Motor Equipment Mechanic Offset Equipment Operator - Lead Offset Equipment Operator Park Maintenance Assistant Parking Enforcement Officer Park Maintenance Person Park Crew - Lead Park Maintenance - Lead Park Ranger Parks & Open Space Assistant Police Records Specialist Refuse Disposal Attendant Senior Chemist Senior Industrial Waste Inspector Senior Instrumentation Technician Senior Operator, Water Quality Control Senior Mechanic, Water Quality Control Senior Park Ranger Sprinkler System Repairer Street Maintenance Assistant Storekeeper Storekeeper-Lead Street Sweeper Operator Traffic Control Maintainer - Lead Traffic Control Maintainer II Traffic Control Maintainer I Tree Trimmer-Line Clearer Tree Maintenance Assistant Tree Trimmer-Line Clearer Assistant Tree Trimmer-Line Clearer - Lead Tree Maintenance Person Truck Driver Utilities Compliance Technician Utility Field Service Representative City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 22 of 70 Utility Installer/Repairer Utility Installer/Repairer Assistant Utility Installer/Repairer – Lead Utility Locator Water Meter Cross Connection Technician Water System Operator - Lead Water System Operator Water System Operator I Water System Operator II Water Quality Control Plant Operator (b) Coveralls will be made available for occasional use as needed to protect clothing for the following classifications and any positions necessary or required as determined by management. Building Inspector Building Inspector Specialist Building Service Person - Lead Cable Splicer Assistant Chief Electric Underground Inspector Electrical Assistant Electrician Facilities Mechanic/Painter Heavy Equipment Operator Lineperson/Cable Splicer Park Ranger Senior Park Ranger Utility Field Service Representative Sprinkler System Repairer Utility Installer Assistant Utility Installer/Repairer Utility Installer/Repairer - Lead (c) Employees required to wear uniforms shall be provided suitable change rooms and lockers where presently provided. (d) Employee clothing seriously damaged or destroyed in conjunction with an industrial injury will be reasonably replaced by the City. Any other claims alleging City liability may be filed with the City Attorney. (e) Except in the Utilities Division, the City will make available, as an alternative to the shirts currently provided under Section 1(a), six (6) cotton polo shirts. Employees in the Utilities Division will be provided with six (6) long-sleeve shirts and two polo shirts. Employees will be responsible for laundering the shirts. Damaged or City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 23 of 70 otherwise unwearable shirts will be returned to the employee’s supervisor and replaced by the City. (f) Employees are responsible for laundering Park Ranger and Senior Park Ranger uniforms. (g) The City will meet and confer with the Union regarding any mandated changes to uniforms. Section 2 - Tool Allowance. (a) Mechanics in Equipment Maintenance, Park Maintenance Lead, Golf Course Equipment Mechanic, Motorized Equipment Mechanic and Mobile Service Technician shall be paid a tool allowance of $610 annually effective July 1, 2005. (b) All tool allowances shall be paid bi-weekly. (c) Parties will meet and confer to determine if additional classifications require tool allowance. Section 3 - Shoe Allowance. (a) Safety Shoes. The City shall reimburse employees 75 % of the cost of job-related safety shoes upon verification of such purchase by the employee. (b) Walking Shoes. The City will reimburse employees 75% of the cost of job-related walking shoes for any positions necessary or required as determined by management including Meter Reader and Meter Reader-Lead, in an amount not to exceed $300.00 per year. A walking shoe is a durable work shoe/boot (non steel-toed), is ankle supporting; oil, gas and slip resistant; waterproof or water resistant; lightweight and durable; and also provides hard surface cushioning. Section 4 - Certifications. The City has proposed to add certain certifications to the list currently covered by this Memorandum of Agreement. The City and Union agree that their discussion of this proposal will likely require additional time and analysis beyond what will be otherwise needed for the parties to reach agreement. Accordingly, the parties agree that the City and Union will continue to meet and confer on this City proposal following ratification and adoption of the MOA. The parties agree to retain the current list of required certifications below and to attempt to address and resolve the issues raised by the City’s proposal and endeavor to reach an agreement to the extent possible, within 60 days of the adoption of this contract. Employees who are required to maintain commercial driver's licenses shall have costs for medical examinations paid by: City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 24 of 70 (a) Completing an examination through their PEMHCA provider. After benefits have been paid by the PEMHCA provider, upon presentation of proper documentation, the City will reimburse any remaining costs, or (b) Completing an examination at the Workforce Medical clinic or other City designated clinic. Employees may use paid leave for attendance at scheduled medical examinations. Employees shall be permitted to use up to two hours of regular City- paid time for attendance at biannual medical examinations. The scheduling of such time shall be preauthorized by the employee’s supervisor. (c) The City will pay special registration and/or certification fees which are required by Management. During the term of this agreement, the City and the Union may, by mutual agreement, review, add or delete classifications and/or required certifications listed below: Classification Requirement Buildg Inspection Specialist ICBO Certificate Cathodic Technician Corrosion Technician by the National Assoc. of Corrision Engineers Engineer Professional Professional Engineer Cert. (for step E) Equip Maint Serv Pers. Forklift Operator Cert. (OSHA-approved) Golf Course Maint Pers. Qualified Applicators' License Heavy Equipment Operator Crane Operation Certificate (Utilities and Electric) Indust. Waste Inspector Backflow Prevention Device Tester Inspector Field Services, Utilities D1 (DOH) Hired before July 1, 2012 Installer/Repairer Series D1 (DOH) Maintenance Mechanic Crane Operator Certification (Water Quality) Mech. Unit Repairer Welding Certificate Motor Equip Mechanic and Lead EMS, ASE Public Safety Dispatcher POST Basic Dispatcher City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 25 of 70 POST Fire Academy EMD Public Safety Dispatcher, Lead POST Basic Dispatcher POST Fire Academy POST Supervision EMD Senior Operator, WQC Grade III Wastewater Treatment Plant Operator Certification. Surveyor, PW Licensed Land Surveyor Tree Trimmer/Line Clearer Certified Tree Worker and/or Qualified Line Clearance/Tree Trimmer Cert. (OSHA-approved) Tree Trimmer/Line Clearer-Lead Certified Arborist Utilities Install/Rep series Polyethylene Fusing Cert. Gas Operator Certification. (DOT) Veterinarian Technician Animal Health Tech. Certification. Water System Operator I Grade DI – Water Distribution Operator Water System Operator II Grade DII – Water Distribution Operator & Grade TII – Water Treatment Operator Senior, Water System Operator Grade DIII – Water Distribution Operator & Grade TIII Water Treatment Operator WQC Plant Operator I Grade I Water Treatment Operator Certification. WQC Plant Operator II Grade II Water Treatment Operator Certification. WQC Plant Operator Trainee Grade I Water Treatment Operator Certification. Water Meter Cross- Connection Technician Backflow Prevention Tester Certification Through these negotiations the City and the Union have agreed to add the following required certificates; City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 26 of 70 1. Inspector Field Services, Utilities D1 (DOH) 2. Installer/Repairer Series, D1 (DOH) 3. Public Safety Dispatcher, EMD 4. Lead Public Safety Dispatcher, EMD (d) The City will pay for the Department of Motor Vehicles (DMV) licensing fees for all employees required to maintain a Commercial Driver's License in accordance with the California Vehicle Code and applicable laws prescribed by the Department of Transportation. (e) Pipeline Welding Assignment. The City will provided a 4% increasepremium in base compensation to Utility Installer-Repairer, Installer-Repairer Lead positions in 2006 that meet DOT certification requirements and are were assigned these duties. Utility Installer-Repairer and Utility Installer-Repairer Lead positions that fail to maintain current certifications will not receive the a 4% increasepremium on their base pay. Positions assigned these duties and designated by Management to receive this premium will not exceed five (5) Utility Installer/Repairer and Installer/Repairer Lead. If the certification is required in the job description, certification must be maintained. In accordance with their job description Maintenance Mechanics that are assigned to Water Gas Wastewater must maintain all required certifications and shall receive 4% increase premium to their base pay for pipeline welding. (f) Building Inspector. Upon successful completion of probationary requirements, the City will pay Building Inspectors a one (1) percent of base salary one-time payment for a certification above what is required. Employees may request one payment per year to a maximum of two payments in career. Payments will not exceed a maximum of one percent per year or two payments in a career. The Building Inspector Job Description specifies current requirements and the Union and City will agree on a list of appropriate certifications eligible for the premium. Premiums will not be paid if certification is not maintained. (g) Water and Wastewater System Operator Certification. Employees classified in the following positions: Water Quality Control Plant Operators I and II, Senior Operator Water Quality Control, Water System Operators I and II, Senior Water Systems Operator, Inspector, Field Services assigned to Utilities and Installer Repairer Job Series may be eligible to receive a 1% base pay premium for certifications required by the Department of Health and/or the State Water Resources Control Board. Employees within these job classifications that have successfully completed probationary requirements may request an annual payment of one (1) percent for one (1) certification that is above those listed in their job description. An employee who qualifies for this payment shall be paid 1% of the employee’s annual base salary once per year. The employee shall be responsible for providing the City with written documentation that the employee has obtained and is maintaining the qualifying certification on an annual basis. Premiums will not be paid if certification is not City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 27 of 70 maintained. Eligible employees should verify certification will qualify for the premium before attempting certification. The Union and the City will update the job descriptions to reflect newly required certifications with no further adjustments to base salary. Payments will not exceed a maximum of one percent per year, and will take effect in the pay period following the verification of certification. All costs for obtaining certifications above what the job description requires will be the responsibility of the employee and may be paid for by using the City’s tuition reimbursement program. (h) In accordance with Cal-OSHA regulations any employee who operates a forklift must have Forklift Operator Certification. Training to be provided by the City. (i) Crane Certification. A Heavy Equipment Operator, Line Person, Line Person Lead, or Maintenance Mechanic who possesses the legally required certification for operation of any crane will receive an increase of one percent (1%) of their base rate effective upon the ratification and adoption of this MOU by the City Council, or upon attainment of the certification, whichever is later. Heavy Equipment Operator (Electric) must possess a Crane certification regardless of hire date. Any employee hired on or after July 1, 2012 may be required to obtain and possess crane certification. For any other employee hired prior to July 1, 2012 crane certification shall be desirable (not required) except under the following circumstances: a) there are insufficient employees in the classification (Heavy Equipment Operator [exclusive of Electric], Lineperson, Lineperson Lead or Maintenance Mechanic) who possess the certification to perform the work; b) The Manager has sought volunteers and no employee in the classification has volunteered to train for the certification; c) all things being equal, the manager has selected the least senior employee in the classification who is judged by the City most likely to successfully complete the training and obtain crane certification. d) The Manager will allow up to three attempts to pass the crane certification for any employee hired before July 1, 2012 who has been involuntarily assigned to acquire the crane certification. Related training and test costs shall be borne by the City. No employee hired before July 1, 2012 shall be disciplined or discharged for failure to acquire a Crane certification. City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 28 of 70 (i) Crane Certification. A Heavy Equipment Operator, Line Person, Line Person Lead, or Maintenance Mechanic who possesses the legally required certification for operation of any crane will receive an increase of one percent (1%) of their base rate effective upon the ratification and adoption of this MOU by the City Council, or upon attainment of the certification, whichever is later. No employee on the payroll as of July 1, 2012, other than Heavy Equipment Operators (Electric Department) will be required to possess a crane certification. However, if an operational need for a certified crane operator arises for which no employee in the affected job classification and Department volunteers for and obtains certification, the Department may require an employee to train for the position and obtain certification. Section 5 - Weather Protection. The City will provide rainy weather foot protection and one summer hat for the classification of Parking Enforcement Officer. ARTICLE X - HOLIDAYS Section 1 - Fixed Holidays. Except as otherwise provided, employees within the representation unit shall have the following fixed holidays with pay: January 1 Third Monday in January (Martin Luther King Day) Third Monday in February Last Monday in May July 4 First Monday in September Second Monday in October Veterans' Day, November 11 Thanksgiving Day Day after Thanksgiving December 25 Either December 24 or December 31 (see below) Employees shall be excused with pay for the full work shift on either December 24 or December 31, provided, however, that City facilities remain open with reduced staffing levels, that Management retains the right to determine work schedules, and that neither day be considered a holiday for purposes of premium pay. If employees are not excused pursuant to this provision, one shift of vacation credit will be added to their vacation accrual. In the event that any of the aforementioned days, except for December 24 or December 31, falls on a Sunday, the following Monday shall be considered a holiday. In the event that any of the aforementioned days falls on a Saturday, the preceding Friday shall be considered a holiday. If December 24 and 31 falls on Sunday, then the preceding Friday will be designated for purposes of the holiday. Exceptions to this provision are listed in Appendix E. City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 29 of 70 Section 2 - Pay for Fixed Holidays. (a) All employees shall be paid a full day's pay at their regular straight time base hourly rate for all fixed holidays as defined herein. (b) An employee must be in a pay status on the workday preceding the holiday to be eligible to be compensated for a holiday. This subsection does not apply to an employee who is on an unpaid medical leave of absence of less than five (5) days. Section 3 - Work on Fixed Holidays. Any employee required to work on a fixed holiday shall be paid time and one-half for such work in addition to his or her regular holiday pay. Work on a fixed holiday beyond the number of hours in a regular shift shall be compensated at double time and one-half. Employees who work a schedule where a regular day off falls on a holiday will accrue the holiday hours they would have normally worked on that day. Section 4 - Variations in Work Week. (a) An employee whose work schedule requires that his or her regular days off be other than Saturday and/or Sunday shall have an additional day off scheduled by the department in the event a fixed holiday falls during his or her regularly scheduled day off. Every attempt will be made to schedule the day on a mutually agreeable basis. If the day cannot be so scheduled, the employee shall be paid for the day at the straight time base rate. (b) Fixed holidays which fall during a vacation period or when an employee is absent because of illness shall not be charged against the employee's vacation or sick leave balance. Section 5 Floating Days Off Employees hired on or before July 1, 2012 will be credited with 3 floating holidays to be scheduled for use by mutual agreement by employee and supervisor. In no event will FH be convertible to cash or other benefits in lieu of Floating Holidays. Effective at the close of business 6/30/13 one floating holiday will be eliminated. On July 1, 2013 and every July thereafter, employees will be credited with two (2) Floating Holidays to be scheduled in the same manner as noted above. Employees hired after 7/1/12 will not receive any floating holidays. Floating Holidays not used by the end of the fiscal year will be deemed forfeited. Section 5 - Floating Days Off. Floating days off with pay will be scheduled by Management as follows so as to produce three-day weekends: City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 30 of 70 August 2011 One floating day off April 2012 One floating day off June 2012 One floating day off The following conditions will hold: (a) Management will designate the scheduling of the paid day off under this section at least thirty days in advance. (b) If in conformance with this section, Management is unable to schedule a day off in the month indicated, for reasons of shift operations, work scheduling or any other reason, the floating holiday will then be added to the employee’s vacation accrual on the first pay period of the following month. (c) If an employee fails to take a day off as scheduled by Management under this section, the day off so scheduled will be forfeited. ARTICLE XI - VACATIONS Section 1 - Vacation Accruals. Each employee shall be entitled to an annual paid vacation, accrued as follows: (a) First day of continuous service through the last day of the fourth (4th) year: 80 hours vacation per year. (b) First day of the fifth year of continuous service through the last day of the ninth (9th) year: 120 hours vacation per year. (c) First day of the tenth (10th) year of continuous service through the last day of the fourteenth (14th) year: 160 hours vacation per year. (d) First day of the fifteenth (15th) year of continuous service through the last day of the nineteenth (19th) year: 180 hours vacation leave per year. (e) Twenty (20) or more years: 200 hours vacation leave per year. Employees may accrue up to three times their annual vacation leave without loss of vacation days. In the event the City is unable to schedule vacation and, as a result thereof, the employee is subject to loss of accrued vacation, the City shall extend the vacation accrual limit up to one year, in which time the excess vacation must be scheduled and taken. As long as there is no interference with departmental operations, there shall be no unreasonable restriction of increments of use. Employees shall complete six (6) months' continuous service before using accrued vacation leave. City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 31 of 70 Section 2 - Holiday Falling During Vacation. In the event a fixed holiday as defined in Article X falls within an employee's vacation period, which would have excused the employee from work (and for which no other compensation is made), an additional workday for such holiday shall be added to the vacation leave. Section 3 - Illness During Vacation. When an employee becomes ill while on vacation and such illness can be supported by a statement from an accredited physician or the employee is hospitalized for any period, the employee shall have the period of illness charged against sick leave and not against vacation leave. Section 4 - Accrued Vacation Pay for Deceased Employees. An employee who is eligible for vacation leave and who dies while in the municipal service shall have the amount of any accrued vacation paid to his/her estate within thirty days. This proration will be computed at his/her last basic rate of pay. Section 5 - Effect of Extended Military Leave. An employee who interrupts service because of extended military leave shall be compensated for accrued vacation at the time the leave becomes effective. Section 6 - Vacation at Termination. Employees leaving the municipal service with accrued vacation leave shall be paid the amounts of accrued vacation to the date of termination. Section 7 - Vacation Cash Out. Once each calendar year an employee may cash out eight or more hours of vacation accrual in excess of 80 hours, to a maximum of 120 hours, provided that the employee has taken 80 hours of vacation in the previous 12 months. 1. To be eligible for cash out vacation, employees must pre-elect the number of vacation hours they will cash out during the following calendar year up to maximum of 120 hours, prior to the start of that calendar year. The election will apply only to vacation hours accrued in the next tax year and eligible for cash out. 2. The election to cash out vacation hours in each designated year will be irrevocable. This means that employees who elect to cash out vacation hours must cash out the number of accrued hours pre-designated on the election form provided by the City. 3. Employees who do not pre-designate or decline a cash out amount by the annual deadline established by the City will be deemed to have waived the right to cash out any leave in the following tax year and will not be eligible to cash out vacation hours in the next tax year. 4. Employees who pre-designate cash out amounts may request a cash out at any time in the designated tax year by submitting a cash out form to Payroll. Payroll will complete City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 32 of 70 the cash out upon request, provided the requested cash out amount has accrued and is consistent with the amount the employee pre-designated. If the full amount of hours designated for cash out is not available at the time of cash out request, the maximum available will be paid. 5. For employees who have not requested payment of the elected cash out amount by November 1 of each year, Payroll will automatically cash out the pre-designated amount in a paycheck issued on or after the payroll date including November 1. ARTICLE XII - LEAVE PROVISIONS Section 1 - Sick Leave. (a) The City shall provide each employee with paid sick leave, earned on a daily basis and computed at the rate of 96 hours per year, with no limits on amounts that may be accumulated, except that for employees hired after July 1, 1983, sick leave accrual accumulation shall be limited to 1,000 hours and subsections (a)(1) and (a)(2), shall not apply. Payment for accumulated sick leave at termination shall be made only in the following circumstances: (1) Eligible employees who leave the municipal service or who die while employed and who have fifteen or more years of continuous service shall receive compensation for unused sick leave hours in a sum equal to two and one-half percent of their unused sick leave hours multiplied by their years of continuous service and their base hourly rate of pay at termination. (2) Full sick leave accrual will be paid in the event of termination due to disability. (b) Use of Sick Leave. Sick leave shall be allowed and used in cases of actual personal sickness or disability, medical or dental treatment, or as authorized for personal business. Up to nine days sick leave per year may be used for illness in the immediate family, including registered domestic partner. A new employee may, if necessary, use up to forty-eight (48) hours of sick leave at any time during the first six months of employment. Any negative balances generated by such utilization will be charged against future accrual or deducted from final paycheck in the event of termination. (c) An employee who has been disabled for 60 consecutive days and who is otherwise eligible both for payment under the long-term disability group insurance coverage and accrued sick leave benefits may, at his/her option, choose either to receive the long term disability benefits or to utilize the remainder of his/her accrued sick leave prior to applying for long-term disability benefits. City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 33 of 70 (d) Sick leave will not be granted for illness occurring during any leave of absence unless the employee can demonstrate that it was necessary to come under the care of a doctor while on such other leave of absence. (e) Return to Work With Limited Duty. Upon approval of department management and the City Risk Manager, an employee may return to work for doctor-approved limited duty. Approval for return to work shall be based upon department ability to provide work consistent with medical limitations, the location of the work assignment, and the length of time of the limitations. The City doctor may be consulted in determining work limitations. Section 2 - Bereavement Leave. Leave of absence with pay of three days shall be granted an employee by the head of his or her department in the event of death in the employee's immediate family, which is defined for the purposes of this section as wife, husband, son, step-son, son-in-law, daughter, step-daughter, daughter-in-law, mother, step-mother, mother-in-law, father, step-father, father-in-law, brother, brother-in-law, step-brother, sister, step-sister, sister in- law, grandmother, grandmother-in-law, grandfather, grandfather-in-law, grandchildren, aunt, uncle, niece, nephew, registered domestic partner, or a close relative residing in the household of the employee. Such leave shall be at full pay and shall not be charged against the employee's accrued vacation or sick leave. Request for leave with pay in excess of three (3) days shall be subject to the written approval of the City Manager. Approval of additional leave will be based on the circumstances of each request with consideration given to the employee's need for additional time. Section 3 - Military Leave. The provisions of the Military and Veterans' Code of the State of California shall govern the granting of military leaves of absence and the rights of employees returning from such leaves. Consistent with the Military and Veterans Code, the City of Palo Alto shall pay employees in SEIU bargaining unit their regular salary, salary differential, and all available benefits for the first thirty days. Section 4 - Leave Without Pay. (a) Disability. Leaves of absence without pay may be granted in cases of disability not covered by sick leave. Pregnancy will be considered as any other disability. Leaves of absence for disability are subject to physicians' verification including diagnosis and medical work restriction. (b) Family Leave. Family leave will be granted in accordance with applicable state and federal law. (c) Other Leaves. Leaves of absence without pay may be granted in cases of personal emergency, Union business or when such absences would not be contrary to the best interest of the City. Non-disability prenatal leave is available under this provision, City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 34 of 70 but such leave shall not begin more than six months prenatal nor extend more than six months postpartum. During unpaid leaves of absence for disability or other reasons, the employee may elect to use accrued vacation credits. Requests for leaves without pay shall not be unreasonably denied. In order to avoid misunderstandings, all leaves without pay must be in writing to be effective. Section 5 - Jury Duty and Subpoenas. Employees required to report for jury duty or to answer subpoenas as a witness in behalf of the State of California or any of its agencies shall be granted a leave of absence with pay from their assigned duties until released by the court, provided the employee remits to the City all fees received from such duties other than mileage or subsistence allowances within thirty (30) days from the termination of jury service. When an employee returns to complete a regular shift following time served on jury duty or as a witness, such time falling within the work shift shall be considered as time worked for purposes of shift completion and overtime computation. In determining whether or not an employee shall return to his or her regular shift following performance of the duties, reasonable consideration shall be given to such factors as travel time and a period of rest. When a combination of City work time and jury duty equals 14 or more hours in the 24-hour period immediately before the employee's shift starting time, the employee will be allowed a rest period of nine hours. Any portion of the rest period falling within the employee's work shift will be considered as hours worked and compensated at the straight time rate. This provision does not apply to conditions of bona fide emergency. Bona fide emergency conditions are conditions involving real or potential loss of service or property or personal danger. Section 6 - Time Off to Vote. Time off with pay to vote in any general or direct primary election shall be granted as provided in the State of California Elections Code, and notice that an employee desires such time off shall be given in accordance with the provisions of said Code. Section 7 - Disapproval of Leave of Absence. In case of disapproval of extension, revocation or cancellation of an existing leave of absence, notice shall be sent by certified mail, return receipt requested, to the employee stating the date of such action, the reason and a specific date to return to work, which is not less than five working days from date indicated on return receipt. Section 8 - Personal Business Leave Chargeable to Sick Leave. All employees shall be granted up to twenty (20) hours personal business leave per calendar year, chargeable to sick leave. The employee need not disclose the reason for the personal business. The scheduling of such leave is subject to the approval of the appropriate level of Management, and such approval shall not unreasonably be denied. City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 35 of 70 Section 9 - Return to Assignment. The department shall make every effort to ensure that employees resuming work following a leave pursuant to Sections 1- 8 shall be returned to the assignment, shift, and/or work location held immediately prior to the leave. If the employee cannot be so assigned, he or she shall, upon request, be granted a meeting with department management to discuss the reasons for the change. Upon request, the employee shall be afforded Union representation at such a meeting. ARTICLE XIII - WORKERS' COMPENSATION INSURANCE Section 1 - Industrial Temporary Disability. (a) While temporarily disabled, employees shall be entitled to use accrued sick leave for the first three (3) days following the date of injury and thereafter shall be paid full base salary for a period of not to exceed fifty-seven (57) calendar days, unless hospitalized, in which case employees shall be paid full base salary for a period not to exceed sixty (60) days from date of injury. (b) For any temporary disability continuing beyond the time limits set forth in (a) above, employees shall be paid two-thirds (66 2/3%) of their full base salary at the time of injury for the duration of such temporary disability in conformance with the State law. (c) During the period of temporary disability, an employee's eligibility for health, dental, life, LTD, or other insured program will continue with City contributions at the same rate as for active employees. In case of Subsection (a) above, the employee will continue to accrue vacation and sick leave benefits. In the case of Subsection (b), sick leave and vacation benefits shall not be accrued. Section 2 - Vocational Rehabilitation Benefits for Permanently Disabled Employees. Vocational Rehabilitation will be made available to employees who have suffered permanent disability as a result of an injury or illness sustained in the course and scope of employment before 1/1/04. For injuries on or after 1/1/04 qualified employees are entitled to supplemental job displacement vouchers in accordance with the California Labor Code, Division 1, Department of Industrial Relations and Division 4, Workers’ Compensation and Insurance, the Americans with Disabilities Act (ADA), and the City of Palo Alto's Workers’ Compensation Program. ARTICLE XIV - BENEFIT PROGRAMS Section 1 - Health Plan (a) Active Employees 1. Through October 5,September 30, 2012 the City and employees will continue to contribute toward medical insurance premiums in the same proportion and City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 36 of 70 subject to the same terms that they contributed toward such premiums as of June 30, 2012. Effective at the start of the pay period including October 61, 2012on the first day of the first full pay period including July 1, 2012 Tthe City will pay up to a maximum of ninety percent (90%) of the monthly medical premium for the 2nd most expensive plan in which the employee is enrolled at the employee’s applicable level of enrollment (i.e. employee only, employee plus one dependent or employee plus two or more dependents). However, the City will in no event contribute more than ninety percent (90%) of the premium for the second most expensive plan among the existing array of plans, except that for increases that go into effect after April 1, 2011 the City and participating employees will share equally the first ten percent (10%) of each at the employee’s applicable level of enrollment. premium increase that occurs for the plan in which the employee is enrolled at their respective level of enrollment (i.e. one party, two party, family). If a given increase exceeds ten percent (10%), the balance of that increase will be paid by the City. If sufficient increases occur that the employee portion of the premium for the plan in which he or she is enrolled equals ten percent (10%) of the total premium at the employee’s level of enrollment, the employee’s share of further premium increases shall be ten percent (10%) and the City’s share shall be ninety percent (90%). City medical premium contributions will be prorated for part-time employees hired or newly assigned to a part-time work schedule on or after January 1, 2010 based on the number of hours per week the part-time employee is assigned to work. If PERS changes the plans it offers, the City and the Union will meet and confer over the City continuing to provide an equivalent benefit at an equivalent cost. Effective April 1, 2011, with premium increases that go into effect after that date tThe City shall contribute to its retiree insurance trust (the PERS retiree medical trust or its successor) an amount not less than the amount of premiums contributions paid by active employees in the bargaining unit in the respective calendar year as a result of the sharing of the first employees’ payment of ten percent (10%) of eachthe premium increase as provided above in this paragraph 1. The City shall make one contribution in the fiscal year to cover the entire amount payable to the trust under this paragraph as of the preceding December 31. 2. Through December 31, 2009, the City will reimburse employees on PERS Care, who switch to PERS Choice during the 2006 open enrollment period and remain in PERS Choice for maximum calendar year co-payments for unreimbursed costs incurred due to the difference between the PERS Care maximum calendar year copayment responsibility and the PERS Choice maximum calendar year copayment responsibility. The total payments per employee will not exceed $1000.00 annually unless employee has a one dependent/family coverage in which case annual payment will not exceed $2000.00. The City has agreed to provide an annual amount of $50,000.00 to address these costs. If total claims for reimbursement exceed available funds, the City will use any unused tuition City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 37 of 70 reimbursement funds budgeted for SEIU for these purposes. Any money left from each year will carry over to subsequent years of this contract. 3. The City agrees to offer a program to active SEIU employees enrolled in PERSCare as of 9/1/06 who elect the PERS Choice health plan in which the City will reimburse the employee and/or dependents for any covered medical expense which exceeds the $2 million Lifetime Maximum Benefit. (b) Health Plan Coverage for Future Retirees Hired Before January 1, 2005. Monthly City-paid premium contributions for a retiree-selected health plan through the CalPERS Health Benefits Program will be made as provided under the Public Employees’ Medical and Hospital Care Act. Effective 1/1/07 the City’s monthly employer contribution for each retiree shall be the amount necessary to pay for the cost of his or her enrollment, in a health benefits plan up to the monthly premium for the 2nd most expensive plan offered to the SEIU employee (among the existing array of plans). However, the City contribution for an employee hired before January 1, 2005 who retires on or after April 1, 2011 shall be the same contribution amount it makes from time to time for active City employees. For 20112, the contribution for dependents is 950% (95100% in 20123) of difference between the applicable “Employee and One Dependent” or “Family” maximum employer contribution for Active SEIU employees and the maximum monthly employer contribution for “Employee Only” coverage. This contribution for dependants will increase annually by 5% of the difference between the single party premium and the two or family member premium, until such time as the amounts are equal. (c) PERS – Health Benefit Vesting For Future Retirees Effective January 1, 2005. The CalPERS vesting schedule set forth in Government Code section 22893 will apply to all SEIU employees hired on or after January 1, 2005. Under this law, an employee is eligible for 50% of the specified employer health premium contribution after ten years of service credit, provided at least five of those years were performed at the City of Palo Alto. After ten years of service credit, each additional year of service credit will increase the employer contribution percentage by 5% until, at 20 years’ service credit, the employee will be eligible upon retirement for 100% of the specified employer contribution. However, the maximum contribution for family members will be 90% of the specified employer contribution. The City of Palo Alto's health premium contribution will be the minimum contribution set by CalPERS under section 22893 based on a weighted average of available health plan premiums. (d) Coverage for Domestic Partners. City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 38 of 70 Domestic Partnership Registered with the California Secretary of State. – Employees may add their domestic partner as a dependent to their elected health plan coverage if the domestic partnership is registered with the Secretary of State. Domestic Partnership Not Registered with the California Secretary of State. Domestic partners who meet the requirements of the City of Palo Alto Declaration of Domestic Partnership, and are registered with the Human Resources Department, will be eligible for reimbursement of the actual monthly premium cost of an individual health plan, not to exceed the maximum monthly City employer contribution for one- party coverage under the CalPERS Health Benefits Program for SEIU members. Evidence of premium payment will be required with request for reimbursement. (e) At City option during the life of this agreement and if otherwise available, the City may offer an incentive payment in lieu of City-paid dependent or family medical coverage for those employees who voluntarily decline dependent coverage. (f) Alternative Medical Benefit Program. If a regular employee and/or the employee’s dependent(s) are eligible for medical insurance through any other employer-sponsored or association-sponsored group medical plan, the employee may elect that alternative medical insurance coverage through the other employer-sponsored or association plan and waives his/her right to the City of Palo Alto’s medical plan insurance coverage for same individuals. Employees electing alternative coverage and waiving City coverage will receive cash payments equal to approximately half of the “average monthly premiums” for their medical insurance coverage. “Averaged monthly premiums” are the average of the Kaiser HMO, Blue Shield HMO and PERS Choice PPO premiums of the employee’s City medical coverage available through the CalPERS Health Benefits Program in the amount of two hundred eighty-four dollars ($284) for each month for which the employee has elected alternative coverage and waived City coverage, effective at the start of the pay period including October 61, 2012.. From and including July 1, 2012 through the day before the start of the pay period that includes October 51, 2012 the benefit payable under this Alternative Medical Benefit Program will be the same benefit in effect June 30, 2012. The rates for 2011 are as follows: One Party: $301 Two Party: $603 Family: $783 (g) If the State of California or federal government requires the City to participate and contribute toward coverage under any medical plan outside of PEMHCA, the City’s total liability for enrolled employees and retirees and their eligible family members shall not exceed what the City would have paid toward PEMHCA coverage in the City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 39 of 70 absence of such state or federal plan. The City will meet and confer with the Union over the impact of such change on matters within the scope of representation before implementing any change. Section 2-Dental Plan. (a) The City shall continue to provide a self-funded dental program for the benefit of City employees and their eligible dependents. The City shall pay 100% of the required premiums for the program, except that benefits for regular part-time employees will be prorated as follows: Employees hired after January 1, 2005, who will work less than full time, will receive prorated premium costs for dental benefits in accordance with his/her percentage of a full-time work schedule. Part-time employees currently receiving full benefits will not be impacted. (b) The City’s Dental Plan provides the following: • Maximum Benefits per Calendar Year $2,000 per person. (c) Effective July 1, 2001, dental implants in conjunction with one or more missing natural teeth, and removal of implants will be covered as a Major Dental Service at 50% usual, customary and reasonable (UCR). (d) Effective 1/1/07 the City will add composite (tooth colored) fillings in dental plan posterior teeth. (e) Effective 1/1/07 the City will pay up to $2000.00 for Orthodontia coverage. Section 3- Vision Care. The City shall continue to provide a self-funded vision care program for the benefit of City employees and their dependents. The City shall pay 100% of the required premiums for the program. The benefits of the vision care program shall continue to be equivalent to $20 Deductible Plan A under the Vision Service Plan. Section 4 - Life Insurance. The City agrees to continue the Basic and Supplemental life insurance plan as currently in effect for the term of this Memorandum of Agreement. Section 5- Long Term Disability Insurance. The City shall continue the long term disability insurance plan currently in effect for the term of this Memorandum of Agreement. For Plan A, the benefit is 66 and 2/3% of pre-disability earnings to the maximum benefit level of $4000.00 per month. Employee coverage is subject to a voluntary payroll deduction of the insurance premium applicable to the first $6,000 of monthly salary, less a credit of $11.17 per month to be paid by the City. For Plan B, the benefit is 60% of pre-disability earnings up to the maximum benefit level of $1800 per month. Employee coverage is subject to a voluntary payroll deduction of the insurance premium applicable to the first $2000 of monthly salary for Plan B. The City will pay premiums in excess thereof. The City will pay up to $17.50 per month toward long term City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 40 of 70 disability insurance premiums for those employees without eligible dependents covered under the health insurance provisions. Section 6 - Effective Date of Coverage for New Employees. For newly-hired regular employees, elected coverage will begin on the first day of the month following date of hire. Section 7 - Dual Coverage. When a City employee is married to another City employee each shall be considered as an employee for purposes of health and dental coverage, provided however that neither shall be covered as a dependent of the other, and dependent children, if any, shall be covered by only one spouse. Section 8 - Deferred Compensation. The City shall continue to make available a Section 457 Deferred Compensation Plan to SEIU employees and will insure reasonable access to Deferred Compensation representatives for all interested employees. Section 9-Dependent Care Assistance Program. The City shall continue to provide a Dependent Care Assistance Program (DCAP) for employees that complies with Section 125 and 129 of the Internal Revenue Code. Section 10 - Training Programs. (a) Employees assigned by the City to attend meetings, workshops, or conventions of their professional or technical associations shall have their dues and reasonable expenses paid by departmental funds and shall be allowed to attend such workshops, meetings, and conventions on paid City time. (b) Health club/gym membership reimbursement of these expenses is taxable to the employee. (cb) City will reimburse for travel, meals and lodging while away from home attending an educational conference that the supervisor authorizes as being job related or which will improve an employee’s skills. Per City Policy and Procedure 1-02, the Pre- Travel Authorization Form should indicate expenses that will be paid. ARTICLE XV - RETIREMENT Section 1 - PERS Continuation. A. 2.7% @ 55. The City will continue the present benefits under the Public Employees' Retirement System 2.7% at 55 for employees hired before July 17, 2010. The Parties acknowledge that employees under this formula hired before July 17, 2010 are subject to a final compensation calculation, for pension determination purposes, based on their single highest year of compensation earnable as provided by Government Code Section 20042. City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 41 of 70 B. 2.0% @ 60 -1HY. Those For employees hired on or after July 17, 2010 shall receive the CalPERS retirement formula two percent (2.0%) of final salary at age sixty (60). but before August 1, 2013 or the adoption of the modified 2% at 60 formula described below, whichever is later, the City will continue to provide the 2% at 60 retirement formula (“2% at 60”). The Parties acknowledge that employees under the existing 2% at 60 pension formula are subject to a final compensation calculation, for pension determination purposes, based on their single highest year of compensation earnable as provided by Government Code section 20042. C. 2.0% @ 60 - 23HY. The City shall further amend its contract with CalPERS to provide miscellaneous members hired on or after August 1, 2013 with the CalPERS retirement formula two percent (2.0%) of final compensation at age sixty (60) with a final compensation calculation, for pension determination purposes, based on the employee’s three consecutive highest years of compensation earnable, as provided by Government Code section 20037. The City may delay the adoption or implementation of the foregoing amendment to the extent it deems such delay necessary to accommodate legal and administrative requirements. In such event, employees hired between and including August 1, 2013 and the day before the amendment’s implementation date will be placed in the 2% of final compensation at age 60 formula with single highest year earnable compensation as described above. Section 2 - Employee Share. Employees currently pay five and three quarters percent (5.75%) and the City pays two and one quarter percent (2.25%) of the eight percent (8%) employee contribution toward the 2.7 @ 55 pension formula. Effective with the first pay period including July 1, 2012 Eemployees hired with the 2.0% @ under all retirement formulas 60 formula set forth in Section 1 above shall pay 8% if enrolled in the 2.7% @55 benefit or 7% if enrolled in the 2% @60 benefit five percent (5%) of pay toward the seven percent (7%) employee contribution and the City shall pay two percent (2%)the entire PERS employee contribution for their respective formulas . However, if PERS laws or rules require that the contribution rate of employees toward the respective employee contributions under the 2.0 @ 60 and 2.7 at 55 formulas must be the same, the uniform employee contribution rate shall be six percent (6%) with the City paying the remaining percentage for the applicable formula. Section 3- Conversion for Final Twelve Months Prior to Retirement. Notwithstanding Section 2 above and pursuant to Government Code Section 20615.5, upon filing a notice of retirement, the amount of the City-paid PERS employee contribution will be converted to a salary adjustment of equal amount on a one-time irrevocable basis for the final twelve months immediately prior to retirement. For this final twelve-month period the employee shall pay PERS employee contributions. Upon receiving an employee’s notice of retirement the City-paid PERS employee contribution that will be converted to a salary adjustment of equal amount on a one-time irrevocable basis for the final twelve months immediately before retirement will be the amount of the applicable employee-paid City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 42 of 70 contribution set forth in section 2 of this Article. For this final twelve-month period the retiring employee on the 2.7 at 55 formula shall pay the full percentage of the applicable PERS employee contributions (8% for employees on the 2.7 @ 55 formula and 7% for employees on the 2.0% at 60 formula). Section 4 - Utility Rates Discount. Employees who retire and were employed by the City on or before April 1, 1977, and spouses of deceased employees who were employed by the City on or before April 1, 1977, shall continue reductions in utility rates. All retired employees and spouses of deceased employees shall also have residential privileges at City libraries, refuse disposal area, golf course and swimming pools. ARTICLE XVI - COMMUTE INCENTIVES AND PARKING Section 1 - Commute Incentive. Eligible employees may voluntarily elect one of the following commute incentives: Civic Center Parking. Employees assigned to Civic Center and adjacent work locations. The City will provide a Civic Center Garage parking permit. New employees hired after April 30, 1994 may initially receive a parking permit for another downtown lot, subject to the availability of space at the Civic Center Garage. Public Transit. The City will provide monthly Commuter Checks worth the value of: $40 for employees traveling two or more zones on Caltrain; $40 for employees using the Dumbarton Express, BART, the ACE train, or a commuter highway vehicle; $35 for employees traveling within one zone on Caltrain; $35 for employees using VTA, and other buses. These checks are pretaxed and may be used toward the purchase of transit pass. Carpool. The City will provide $30 per month (taxable income) to each eligible employee in a carpool for 60% or more of their scheduled work days per month with two or more people.. Vanpool Program. The City will provide Commuter Checks worth the value up to $60 to each employee voluntarily participating in the Vanpool Program. These checks are pre-taxed and may be used toward payment of the monthly cost of Vanpool Program participation. Employees must fulfill the basic requirements of the Employee Commute Alternatives Program to qualify. Bicycle. The City will provide $20 per month (taxable income) to eligible employees who ride a bicycle to work. This payment is available through the CCD web site in the form of a special Commuter Check (tax free) for bike equipment, gear or repairs. This benefit cannot be combined with other commute benefits. Walk. The City will provide $20 per month (taxable income) to eligible employees who walk to work 60% or more of their scheduled work days. City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 43 of 70 Transit or vanpool users: Tax-free incentives up to the IRS limit (currently $125/month) are available through the Commuter Check Direct (CCD) web site for employees using Bay Area public transportation or riding in a registered vanpool at least 60% of their scheduled work days. The deadline for registering with CCD and placing an online order is 8:59 p.m. on the 7th of each month, for the next month’s benefit. For example, employees wishing to order a transit pass by June must place their online orders with CCD by May 7th. Section 2 – Parking Lot Security – Municipal Service Center. The City will provide fenced and locked parking facilities for Municipal Service Center employees. Procedures will be established for entering and leaving the parking facilities. Section 3 – Bicycle Lockers and Motorcycle Parking. The City will provide bicycle lockers and motorcycle parking areas for City employees at mutually agreeable work locations. ARTICLE XVII - PHYSICAL EXAMINATIONS If any non-probationary employee who is required to have a City-provided physical examination not related to workers' compensation programs disagrees with the findings of the City-sponsored physician, he/she may consult with his/her own physician and, if his/her private physician's report conflicts with that of the City physician in terms of ability to work at his/her regular job, then he/she may request an evaluation of his/her problem through a third physician mutually agreed upon by the employee and the City. Cost for such examination will be equally shared and the decision of this physician concerning the continuing ability of the employee to perform his/her work in his/her regular job without exposing himself/herself to further injury as a result of his/her condition shall be the basis for returning the employee to his/her regular work. ARTICLE XVIII – SAFETY Section 1 - Health and Safety Provisions. The City shall furnish and use safety devices and safeguards and shall adopt use practices, means, methods, operations and processes which are reasonably adequate to render such employment and place of employment safe, in conformance with applicable safety regulations under the State Labor and Administrative Code sections. The City shall not require or permit any employee to go to or be in any employment or place of employment which is not safe. Section 2 - Union Cooperation. Union will cooperate with the City by encouraging all employees to perform their work in a safe manner. Section 3 - Safety Committees and Disputes. City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 44 of 70 Safety committees composed of Management and Union stewards in the below listed organizations will meet no less than six (6) times annually to discuss safety practices, methods of reducing hazards, and to conduct safety training. This shall in no way remove the basic responsibility of safety from Management nor shall it in any way alter the responsibility of the employee to report unsafe conditions directly and immediately to his or her supervisor. Community Services Public Works Water-Gas-Wastewater Field Operations Electric Field Operations Water Quality Control (a) A committee composed of one facilities Management representative, one building inspection representative, two Union representatives, and the City Risk Manager will meet as needed concerning safety matters of the Civic Center. (b) A ten-member Citywide Union/Management safety committee with equal Union and Management membership will meet upon call to review safety and occupational health standards and practices, discuss overall City safety and health problems, and to act as an advisory group to the departmental safety committees. The committee shall review all departmental safety programs and recommend change where necessary. (c) In cases of dispute over safe working conditions the employee will first report such unsafe conditions to his or her supervisor and every attempt will be made to rectify the problem at this level. The employee may contact his or her steward to assist in the resolution of the dispute. If the problem cannot be resolved the Risk Manager will be contacted and the problem will be addressed through the interpretation of the basic safety rules and regulations. Should the problem not be resolved at this step, the grievance procedure will be utilized. Safety grievances shall be submitted at Step III. (d) In response to recommendations from the Ergonomics Safety Committee, management will develop training workshops which include information on safe ergonomic work practices. Such workshops will be given at least two times per year. Upon release of Cal/OSHA regulations covering safe workplace ergonomic standards, management will immediately adopt such standards as party of its Injury Prevention Program. ARTICLE XIX - GRIEVANCE and APPEAL PROCEDURE Section 1- General Provisions. The City and the Union recognize that early settlement of grievance or appeal of disciplinary actions is essential to sound employee-employer relations. The parties seek to establish a mutually satisfactory method for the settlement of employee grievances, or appeal of disciplinary action, or Union grievances as provided City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 45 of 70 for below. In presenting a grievance or appeal of disciplinary action, the aggrieved and/or his or her representative is assured freedom from restraint, interference, coercion, discrimination or reprisal. Release time for investigation and processing a grievance or appeal of disciplinary action is designated in Article IV of this Memorandum of Agreement (MOA). Section 2 - Definitions (a) Grievance means an unresolved complaint or dispute regarding the application or interpretation of rules, regulations, policies, procedures, Memorandum of Agreement or City ordinances of resolution, relating to terms or conditions of employment, wages or fringe benefits, excluding however those provisions of this MOA which specifically provide that the decision of any City official shall be final, the interpretation or application of those provisions not being subject to the grievance or appeal of disciplinary action procedure. (b) Appeal of a disciplinary action means an appeal of any kind of disciplinary action against an employee covered by this Memorandum of Agreement. Discipline is defined as suspensions without pay, reductions in pay, demotion or discharge. Reprimands, transfers, reassignments, layoffs, and negative comments in performance evaluations are not considered discipline. Section 3- Conduct of Grievance Procedure or Appeal of Disciplinary Action Procedure (a) An aggrieved employee may be represented by the Union or may represent himself/herself in preparing and presenting a grievance or appeal of disciplinary action at any level of review. Grievances or appeal of disciplinary action may also be presented by a group of employees. No grievance or appeal of disciplinary action settlement may be made in violation of an existing merit rule or memorandum of agreement. The Union will be notified prior to the implementation of any settlement made which affects the rights or conditions of other employees represented by the Union. The Union and the Steward will be copied on all written representation unit grievance or appeal of disciplinary action decisions. (b) An employee and the representative steward, if any, may use a reasonable amount of work time so long as there is no disruption of work, in conferring about and presenting a grievance or appeal of disciplinary action. Requests for release time to prepare grievance or appeal of disciplinary action shall be made in accordance with the provisions of Article IV, Section 3. (c) Beginning with the third step of the grievance or appeal of disciplinary action procedure, the Chief Steward or Alternate Chief Steward may assist in presenting a grievance or appeal of disciplinary action and may be present at all Step III, and IV grievance or appeal of disciplinary action hearings. City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 46 of 70 (d) The time limits specified in this Article may be extended by mutual agreement in writing of the aggrieved employee or the Union and the reviewer concerned. (e) Should a decision not be rendered within a stipulated time limit, the grievant may immediately appeal to the next step. (f) The grievance or appeal of disciplinary action may be considered settled if the decision of any step is not appealed within the specified time limit. (g) If appropriate, the aggrieved employee(s) or the Union and the department head may mutually agree, in writing, to waive Step I and/or Step II of the grievance or appeal of disciplinary action procedure. (h) Grievances or appeal of disciplinary action shall be made in writing and submitted on forms provided by the City or on forms which are mutually agreeable to the City and the Union. The written grievance or appeal of disciplinary action shall contain clear, factual and concise language, including: (1) the name of the grievant; (2) a statement of the facts upon which the grievance or appeal of disciplinary action is based, including relevant dates, times and places; (3) specific provisions of this Agreement or specific City rules, policies, or procedures which the grievance or appeal of disciplinary action alleges has been violated; (4) a summary of any steps taken toward resolution; and (5) the action the grievant believes will resolve the grievance or appeal of disciplinary action. (i) Any retroactivity on monetary grievances or appeal of disciplinary action shall be limited to the date of occurrence, except in no case will retroactivity be granted prior to three months before the grievance or appeal of disciplinary action was filed in writing. (j) If the grievance is filed by more than one employee in the bargaining unit, the Union may, at its option, convert it to a Union grievance after Step II of the grievance procedure. The Union may also file a grievance in those instances when, under this Memorandum of Agreement, a Union right not directly related to an individual employee becomes the subject of dispute. Union grievances shall comply with all of the foregoing provisions and procedures. (k) For purposes of time limits, “working days” are considered to be Monday through Friday, exclusive of City holidays. (l) If a mutually agreed solution is reached during any step of this grievance or appeal of disciplinary action procedure, the agreement shall be placed in writing and signed by the City and the grievant or union. City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 47 of 70 (m) Upon request of either party, meetings to discuss the grievance or appeal of disciplinary action shall be held at any step in the grievance or appeal of disciplinary action procedure. (n) The Parties may mutually agree in writing to an alternate method(s) of delivery for any communication for any notices required pursuant to Article XIX, Grievance Procedure, of a grievance or appeal of disciplinary action. Such agreement shall list the designated representative(s) for each party and the appropriate contact information for each Party, and describe the agreed-upon method(s) of communication. All designated representatives shall be copied on any communications. On all transmissions that are intended to conform to a time limit, the sender shall retain proof that the transmission was sent within that limit (for example, confirmation of electronic mail transmission or record of successful fax transmission) in the sender’s file for production if a dispute arises over existence or timing of the transmission. Either Party may designate new representatives or terminate an alternate delivery agreement under this section by providing written notice, which shall be effective immediately, to the other. Section 4- Grievance and Appeal Procedure. Step I. Informal Discussion. Within fifteen (15) working days after the incident or discovery of the incident on which the grievance or appeal of disciplinary action is based the aggrieved employee shall present the grievance action to his or her immediate supervisor and attempt to resolve the grievance through informal discussions. Every attempt will be made to settle the issue at this level. Step II. If the grievance is not resolved through the informal discussion in Step 1 or the employee wishes to appeal disciplinary action taken against him/her in the case of a grievance, the employee will reduce the grievance or appeal of disciplinary action to writing and submit copies to the Department head or his or her designee within fifteen (15) working days of the discussion with the immediate supervisor or within fifteen (15) working days from the receipt of a final disciplinary action. The Department Head or designee shall have fifteen (15) working days from the receipt of a written grievance or appeal of disciplinary action to review the matter and prepare a written statement. Step III. If the grievance or appeal of disciplinary action is not resolved and/or the aggrieved employee is not satisfied with the Step II decision, the grievant or disciplined employee may appeal to the Human Resource Director or his or her designee in writing within fifteen (15) working days of the receipt of the Department Head's response. The written appeal to the Human Resources level shall include a copy of the original grievance or appeal of disciplinary action, the Department Head’s decision at Step II, and a clear statement of the reasons for appeal. Within fifteen (15) working days, after receiving the written appeal, the Human Resource Director shall review the matter and prepare a written statement. If a mutually agreed solution is reached during this process the agreement shall be placed in writing and signed. City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 48 of 70 Step IV. If the grievance or appeal of disciplinary action is not resolved at Step III, the aggrieved employee may choose between final and binding resolution of the grievance or appeal of disciplinary action through appeal to the City Manager or through appeal to final and binding arbitration. For the term of this Memorandum of Agreement, appeals to final and binding arbitration may be processed only with Union approval. All Step IV appeals must be filed in writing at the Human Resources Department Office within fifteen (15) working days of receipt of the Human Resource Director’s decision at Step 3. If the grievant or appellant elects final and binding resolution by the City Manager, the City Manager will choose the methods he or she considers appropriate to review and settle the grievance or appeal of disciplinary action. The City Manager shall render a written decision to all parties directly involved within fifteen (15) working days after receiving the grievant/appellant’s appeal. If the grievant/appellant elects final and binding arbitration in accordance with this provision, the parties shall mutually select an arbitrator within 90 days from the date of receipt of the written request for appeal. In the event the parties cannot agree on an arbitrator, they shall mutually request a panel of five arbitrators from the California State Conciliation Service or from the American Arbitration Association if either party objects to the State Conciliation Service, and select an arbitrator by the alternate strike method. The arbitrator shall have jurisdiction and authority only to interpret, apply, or determine compliance with the provisions of this Memorandum of Agreement and such Merit System Rules, regulations, policies, procedures, City ordinances, resolutions relating to terms or conditions of employment, wages or fringe benefits, as may hereafter be in effect in the City insofar as may be necessary to the determination of grievances or appeal of disciplinary action appealed to the arbitrator. The arbitrator shall be without power to make any decision contrary to, or inconsistent with or modifying in any way, the terms of this Memorandum Of Agreement. The arbitrator shall be without authority to require the City to delegate or relinquish any powers which by State law or City Charter the City cannot delegate or relinquish. Where either party seeks arbitration and the other party claims the matter is not subject to the arbitration provisions of this Memorandum of Agreement, the issue of arbitrability shall first be decided by the arbitrator using the standards and criteria set forth in Article XX and without regard to the merits of the grievance or appeal of disciplinary action. If the issue is held to be arbitrable, the arbitration proceedings will be recessed for up to five working days during which the parties shall attempt to resolve the grievance. If no resolution is reached, the arbitrator will resume the hearing and hear and resolve the issue on the merits. Copies of the arbitrator's decision shall be submitted to the City, the aggrieved employee and the Union. All direct costs emanating from the arbitration procedure shall be shared equally by the City and the aggrieved employee or the Union. ARTICLE XX - UNSATISFACTORY WORK OR CONDUCT AND DISCIPLINARY ACTION The City has the right to discipline, demote, or discharge employees for cause. Non- probationary employees whose work or conduct is unsatisfactory but not sufficiently City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 49 of 70 deficient to warrant discipline, demotion, or discharge will be given a written notification of unsatisfactory work or conduct and an opportunity to improve. Failure to correct deficiencies and improve to meet standards may result in discipline, demotion, or discharge. Discipline is defined as suspensions without pay, reduction in pay, demotion, or discharge. Reprimands, transfers, reassignments, layoffs, and negative comments in performance evaluations are not discipline and shall not be subject to the requirements of this Article. Section 1 - Preliminary Notice of Discipline. Prior to imposing disciplinary action, a supervisor shall provide an employee with preliminary written notice of the proposed disciplinary action. The notice of proposed disciplinary action must be in writing and served on the employee in person or by registered mail or Fed-Ex . The notice of disciplinary action shall include: (a) Statement of the violations upon which the disciplinary action is based; (b) Intended effective date of the action; (c) Statement of the cause thereof; (d) Statement in ordinary and concise language of the act or the omissions upon which the causes are based; (e) Copies of any documents or other written materials upon which the disciplinary action was fully or in part based. (f) Statement advising the employee of his/her right to appeal from such action, and the right to union representation. (g) The date and location of the Skelly meeting and the name of the Skelly Officer Section 2 - Skelly Meeting. The employee shall have the right to respond informally to the charges either verbally or in writing before the discipline is imposed. The employee shall have fifteen (15) working days from receipt of the notice to request this pre- disciplinary administrative review. The employee may request a reasonable extension of the time to respond for justifiable reasons. The Skelly meeting to listen to the verbal responses shall be scheduled with a City representative who is not the manager recommending the discipline (the “Skelly Officer”). The Skelly Officer shall render a final written decision (the “post-Skelly decision”) within fifteen (15) working days of receiving the employee’s response, if any, and shall deliver the post-Skelly decision to the employee by personal delivery or registered mail. The Skelly Officer may sustain, City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 50 of 70 modify, or overturn the recommended disciplinary action. If the Skelly Officer sustains or modifies the disciplinary action, the action may be imposed after the post-Skelly decision is delivered to the employee. Section 3 – Appeals. Appeals of disciplinary action should be processed through the procedures outlined in Steps 2-4 of the grievance appeal of disciplinary action procedure (Article XIX, Section 4.) ARTICLE XXI - NO ABROGATION OF RIGHTS The parties acknowledge that Management rights as indicated in Section 1207D of the Merit System Rules and Regulations and all applicable State laws are neither abrogated nor made subject to negotiation by adoption of this MOA. ARTICLE XXII - OUTSIDE EMPLOYMENT The provisions of Article 4.7 of the Government Code of the State of California will govern the determination of incompatible outside employment. ARTICLE XXIII – WORK STOPPAGE AND LOCKOUTS The City agrees that it will not lock out employees, and the Union agrees that it will not engage in any concerted work stoppage or slowdown during the term of this MOA. An employee shall not have the right to recognize the picket line of a labor organization when performing duties of an emergency nature. ARTICLE XXIV PROVISIONS OF THE LAW Section 1. Conformity and Separability of Provisions. This Memorandum of Agreement is subject to all current and future applicable Federal and State laws and Federal and State regulations and the Charter of the City of Palo Alto and the Constitution of the State of California. Should any of the provisions herein contained be rendered or declared invalid by reason of any existing State or Federal legislation, such invalidation of such part or portion of this Memorandum of Agreement shall not invalidate the remaining portions hereof, and they shall remain in full force and effect, insofar as such remaining portions are severable. Section 2. Merit Rules and Regulations. This Memorandum of Agreement shall become a part of the City of Palo Alto Merit Rules and Regulations applying to employees City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 51 of 70 assigned to classifications in the SEIU unit. As applied to employees assigned to the SEIU unit, this Memorandum of Agreement shall prevail over any conflicting Merit Rules and Regulations. Section 3 - Resolution. The City and the Union agree by signing this Memorandum of Agreement that the wages, hours, rights and working conditions contained herein shall be continued in full force during the term of this Memorandum of Agreement except as otherwise provided for in the Memorandum of Agreement and shall be binding on both the City and the Union upon ratification by the Council of the City of Palo Alto and upon ratification by Union membership. ARTICLE XXV - COST REDUCTION PROGRAMS During the term of this agreement, the Union will aggressively assist Management in developing cost reduction programs. Such programs may include voluntary reduced hours/pay after this concept is studied by Management, and with such application as may be approved by Management. ARTICLE XXVI – TERM The Term of this Memorandum of Agreement shall commence on July 1, 2011,2 and shall expire on June 30July1 December 1, 20123. Either party may serve written notice upon the other party during the period between ninety (90) and sixty (60) days prior to June 30, 2012, of its desire to amend this Memorandum of Agreement. The Parties agree that they will commence negotiations over a successor to this Memorandum of Agreement no later than one hundred eighty (180) days before its expiration. If, at the time this Memorandum of Agreement would otherwise terminateexpire , the parties are continuing to negotiateing a newsuccessor Memorandum of Agreement, upon mutual agreement the terms and conditions of this Memorandum shallwill continue in effect. EXECUTED: FOR LOCAL 521, SEIU, CTW: FOR CITY OF PALO ALTO: _______________________________ _______________________________ Susan Nye, Director James Keene, City Manager City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 52 of 70 _______________________________ ________________________________ _______________________________ ________________________________ ________________________________ City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 53 of 70 ________________________________ ________________________________ EXECUTED this day, July , 2011: FOR LOCAL 521, SEIU, CTW: FOR CITY OF PALO ALTO: _______________________________ _______________________________ James Keene City Manager Nick Raisch Worksite Organizer Brian Ward Sandra Blanch Chapter Chair Interim Human Resources Director Victor Farisato Marcie Scott Chief Steward Labor Relations Administrator Margaret Adkins Joe Saccio Vice Chair Deputy Director Administrative Services Department Joel Dino City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 54 of 70 Secretary Darrell Murray, Chief Negotiator (IEDA) ________________________________ REVIEWED: ________________________________ Melissa Tronquet Senior Deputy City Attorney _______________________________ ________________________________ ________________________________ ________________________________ ________________________________ City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 55 of 70 Appendix “A” - Salary Schedule This Appendix will be amended to reflect the following increases effective July 1, 2012 or upon adoption of the MOA, whichever is later, unless otherwise noted:  General base wage increase 1.65%  Lineperson/CS base increase 5%*  Lineperson/CS Lead base increase 5%*  Compliance Technician base increase 5%*  Compliance Lead base increase 5%*  Utility System Operator base increase 5%*  Installer-Repairer Lead base increase 2%*  Recreation Coordinator base increase 6.8%* Update the job descriptions listed above as presented; add the service retention steps of 2.5% of base for Dispatcher I, II and Lead at beginning of 7th year and beginning of 10th year. City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 56 of 70 APPENDIX B. APPRENTICESHIPS WATER QUALITY CONTROL OPERATOR TRAINEE may lead to positions within Water Quality Control. ELECTRICIAN/LINEPERSON - LINEPERSON/CABLE SPLICER APPRENTICE: May lead to Electrician or Lineperson/Cable Splicer positions. The Utilities Department is proposing to formalize the Apprenticeship programs in the Electric Section to develop journey level electricians and lineperson/cable splicers. The following are basic concepts/principles to be incorporated: 1. The administration and operation of the Apprentice Lineperson/Cable Splicer program will be managed by the Apprenticeship Committee which will be selected by the Manager of Electric Operations and comprised of two (2) SEIU bargaining unit members designated by Local 521 and two (2) Managers and the Manager of Electric Operations. The Manager of Electric Operations will maintain oversight of the program. The Apprenticeship Program will be subject to review and approval by the State of California Department of Industrial Relations Division of Apprenticeship Standards. Positions/classifications to be identified through the normal budget process - three initially. 2. The journey level position will not be a promotional opportunity for anyone other than the apprentice underfilling the position, soas long as that apprentice is City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 57 of 70 successfully progressing through the program. 3. Employees in Electric Operations who qualify will be given first consideration for the apprentice position prior to other City classifications or recruiting from outside the City. 4. A letter of agreement will be entered into by the apprentice and the City identifying the terms and conditions of the program. 5. The program will normally require 36forty-eight (48) months to complete. 6. Normal progress through the program will be in periodic increments with formal evaluations. 7. Salary steps will have been established to bridge the Electrical Assistant classification into the journey level classification. Employees hired into an Apprenticeship position on or before July 1, 2012 will continue to progress through the Apprenticeship steps and into the Lineperson journey rate at the same intervals as existed before July 1, 2012 for other employees in the Apprenticeship Program. This will result in the employee achieving the top step (step 5) of the Lineperson rate after completion of 36 months of the Apprenticeship Program. However, such employees will continue in the Apprenticeship program through the successful completion of the fourth year of the program. Employees hired into an Apprenticeship position after July 1, 2012 will be paid at step 1 of the Apprenticeship range through the first year of the Apprenticeship. At the end of the first year, the employee will progress to step 2. The next step will occur at 18 months after the commencement of the Apprenticship; the next at 24 months; the next at 30 months; and the next at 36 months. Upon completion of the fourth year following commencement of the Apprenticeship, the employee will be paid at the top step (step 5) of the journey Lineperson wage. Successful completion of the program and movement into the Lineperson classification will not transpire until the employee has fulfilled all of the requirements outlined in the program content description and received the recommendation of the Apprenticeship Committee. 8. A process for initial selection and placement in the program will be established. The City and the Union agree to review or develop job descriptions to better reflect the qualification necessary to attract and retain successful candidates for this program. It is further agreed that the job descriptions will not warrant additional compensation. 9. A procedure for removing an unsuccessful apprentice from the program will be developed. City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 58 of 70 10. A task force including journey level persons will be assigned to determine the content and approach to specific elements of training. 11. Training will consist of on-the-job (OJT) and after hours elements (study and formal classes). Off-the-job training costs will be funded by tuition reimbursement and departmental funds. Personal time spent in off-the-job training will not be compensated. 12. The apprentice will be under the continuing guidance of an appropriately qualified journey level person during OJT. Such journey level persons will be assigned by Management from among volunteers and will receive no additional compensation. 13. Qualifications/progress will be verified by appropriately kept records. 14. Unless specifically stated otherwise, regular City personnel policies and MOA provisions will apply to the apprenticeship program. 15. This program may become a conceptual model for apprenticeships in other divisions or departments. APPENDIX C. ALTERNATIVE 4/11 WORK SCHEDULE The City and Union have agreed to the following alternative work schedule for Public Safety Dispatchers: 1. The City agrees to maintain a minimum of 18 permanent dispatchers on paid status for this alternative 4/11 work schedule. If the Communications Unit falls below the minimum staffing levels for Communications for more than 120-days (4 months), the City and the Union will meet and confer over whether to continue the 4/11 schedule or revert to another schedule (such as 4/10) until such time as there are 18 permanent dispatchers on paid status. 2. The City agrees that in accordance with FLSA requirements the dispatchers will receive overtime for all hours worked outside of the regularly scheduled work hours of the 4/11 schedule. City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 59 of 70 APPENDIX D - DEPT/DIVISION CLASSIFICATION WORKDAY OR WORK WEEK VARIATION Section 1. Exceptions to Standard Workday or Work Week for SEIU Representation Unit: COMMUNITY SERVICES Arts & Culture Division Volunteer - Coordinator Each week (30 hours): 15 hours of unscheduled time; 15 hours of scheduled time Library Department Coordinator, Library Programs Librarian Senior Librarian Library Specialist Library Assistant Library Associate City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 60 of 70 In a given workweek, staff may work three eight-hour days, one seven-hour day, and one nine-hour day. On a voluntary basis, staff may work five non-consecutive days within seven. Section 2. Rules Governing Flexible Work Hours. These rules and procedures are established pursuant to Article VI, Section 8, and are an application of Article VIII, Sections 1, 2, and 3 of the Memorandum of Agreement to the classifications of Coordinator, Recreation Programs; Producer, Arts & Sciences Programs; Program Assistant; Theater Specialist, in the Recreation and Arts & Culture Divisions of the Community Services Department, and the classifications of Associate Planner, Building Planning Technician, CDBG Coordinator, Engineer, Executive Secretary, Office Specialist, Planner, Senior Planner and Staff Secretary in the Planning and Community Environment Department. (a) Flexible Work Schedule 1. Employees in the covered classification shall be permitted to arrange flexible work schedules with division approval, providing that such schedules shall include forty (40) hours per week. 2. Standard daily office hours shall be Monday through Friday, between the hours of 8:00 a.m. and 6:00 p.m. Flexible hours may occur for supervision of, and/or attendance at, evening programs, meetings, weekend events, or other programs. (b) Overtime 1. Emergency call-out work shall be defined as overtime work and compensated per standard City practices. 2. If the need arises for overtime work due to an unusual circumstance calling for extra hours or due to a special event, compensation shall be allowed with prior approval of the Director of Recreation, Director of Arts and Culture, or the Director of Planning and Community Environment, and shall be compensated for, as spelled out in the Memorandum of Agreement. Section 3. 2080 Plan (a) Either the Union or the City may withdraw from the Plan by giving the other party 30 calendar days written notice. In the event of termination of the plan, the covered classifications will return to an 8-hour or other authorized workday as provided under Article VIII, Section 1, of this Memorandum of Agreement. (b) Provisions of the 2080 Plan are as follows. To the extent that these provisions are in conflict with other provisions of the Memorandum of Agreement, these provisions will prevail. City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 61 of 70 (c) The 2080 Plan or “12 hours per Shift Schedule” is an authorized work schedule for the Electric System Operators and Water Quality Control Plant Operators. 2080 Plan Under this 2080 Plan, each employee's hours of work per year may not exceed 2,240. For scheduling purposes, and subject to the Merit System Rules and Regulations, the employee will be guaranteed not less than 2080 hours per year, or no less than 52 weeks at the normal number of hours worked per week. Any employee covered by the Plan who works up to 2,080 hours per year is compensated for all hours worked at the agreed upon rate. The City must pay overtime for all hours worked in excess of 12 in any workday, 56 hours in any work week, or 2080 hours in 52 weeks as the case may be. The rate of overtime will be at time and one-half the employee's regular rate of pay (or current contract overtime rate, if different). Shift Schedule The shift schedules combined must provide full 24-hour, seven (7) days per week coverage for the Utility Control Center and Water Quality Control Plan. The shift schedule shall be a rotating schedule. The Electric System Operators’ shift schedule will reach the equivalent of 40 hours per week in five weeks. The 12-hour shifts begin at 7:00 a.m. and 7:00 p.m. The Relief shift shall begin at 7:00 a.m. and end at 3:00 p.m. with lunch taken while working. The shift schedule shall be rotating schedule. The Water Quality Control Plant Operators’ shift schedule will reach the equivalent of 40 hours per week in two weeks. There will be four 12-hour shifts that begin at 6:00 a.m. and 6:00 p.m. The fifth shift will be a 4/10 shift that begins at 6 a.m. on three days, and at noon on the fourth day. Pay Period Pay periods and workweek for the System Operations will begin Sunday at 7:01 a.m. Pay periods and workweek for the Water Quality Control Plan Operators will begin Saturday at 6:01 a.m. Wages Wages will be based on the City of Palo Alto Compensation Plan, which may vary from time to time as mutually agreed upon. Overtime Under the 2080 Plan, the City will pay overtime for all hours worked in excess of 12 in any workday, 56 in any work week, or 2080 in 52 weeks, as the case may be. Overtime will also be paid for hours worked when an employee is called in to work other than their regularly-scheduled shift. The overtime rate of pay will be one and one-half times (or current contract overtime rate, if different) of the employee's regular rate of pay. City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 62 of 70 All overtime worked will be paid to the employee. No compensatory time off for overtime will be allowed with the exception of Water Quality Control Operations. Relief Employees This provision only applies to the Electric System Operators. The five Operators share the relief week evenly as they rotate through the five week cycle. Relief employee(s) will be used within the 12-hours shift schedule only when relieving for the System Operators on shift. When not relieving, they will work four eight-hour shifts. When a vacation relief week results in a 36-hour or 48-hour week, the operator working said week shall be paid at one and one-half (1½) time their normal rate of pay for hours that exceed thirty two (32) hours. Relief Duties This provision only applies to the Electric System Operators. An employee who is scheduled to perform relief duties shall be available for duty in revolving shifts on any day of the week and may be assigned for relief in any shift without advance notice. Relief employees will be paid standby pay during their relief week. Standby This provision only applies to the Electric System Operators. An employee who is on relief duties is covering standby, and will be compensated according to Article VIII, Section 7 (a) of the Memorandum of Agreement. If the relief employee is onvacation or otherwise unavailable for relief duties, the employee(s) on their three or four-day off period will be first on standby. Management reserves the right to utilize Management personnel as Operators on a short- term, as needed basis, if no Operator is available. Filling Vacant Positions If the City elects to fill a vacancy other than by reassignment of the shift or the utilization of prior or succeeding shift personnel, the following procedure shall be used: Employees will be called according to their position on the Pre-arranged Overtime List (POL), with the person with the lowest balance being the first one called. The purpose of the POL is to fairly distribute the available opportunities. If an employee turns down the overtime, that amount will be added to the employee's POL balance. If an employee cannot be contacted for such assignment, the employee will not have any overtime added to their POL account balance. City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 63 of 70 Shift Changes Shift changes caused by scheduled time off or sick leave will not be considered an official change in shift. Maximum Hours Worked No employee shall work more than 18 consecutive hours. Rest Period In a 12-hour workday, employees are entitled to a rest period of 8 consecutive hours after working 6 hours overtime during the 12 hours immediately before the regularly scheduled hours of work on a workday or non-workday. Holidays Employees who begin their day or night shift on an observed holiday will receive overtime premium in accordance with Article X, Section 3 of the Memorandum of Agreement. Employees who work a schedule where a regular day off falls on a holiday will be paid for the hours they would have normally worked on that day. Employees working for Water Quality Control Operations may accrue holiday time convertible to vacation. Sick Leave Sick leave will be earned as indicated in Article XII, Section 1(a) of this MOA, and shall be charged in increments of one hour. Floating Days Off Floating holidays will be made available to eligible employees and used pursuant to Article X, Section 5. Floating days off will be converted to hours at eight hours per day and credited to the employees' vacation bank for use as scheduled vacation. Vacation An employee's total entitlement will be converted to hours (eight hours = one day). A workday will consist of 12 hours, and employees taking vacation will be charged 12 hours of use. Two week notification is required for any scheduled time off. Only one person at a time may be scheduled off. It is the intention of the City that vacation be taken in units of one work week; however, with approval of his/her supervisor, an employee may use his/her accrued vacation in units of less than one work week. Meals City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 64 of 70 Shift employees shall be permitted to eat their meals during work hours and shall not be allowed additional time, therefore at City expense. Shift Premium Shift premium will be handled in accordance with the current Memorandum of Agreement between the City and the Union, Article VIII, Section 8. Jury Duty Time off for jury duty which occurs on a regularly scheduled workday will result in the employee being credited with up to 12 hours worked, for pay purposes. Employees called for jury duty who are working the evening portion of the 12-hour schedule will be placed, for payroll and scheduling purposes, on the day shift for each scheduled day such employee is required to report for jury duty, and will not be required to work the evening 12-hour shift before or after being required to report for jury duty. However, such employee shall return to work on the day shift upon being released from such duty if there are at least four hours remaining prior to the end of the day shift. All other provisions of Article XII, Section 5, of the current Memorandum of Agreement shall apply. City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 65 of 70 APPENDIX E. IN-LIEU PREMIUMS 1. For employees in the following operations assigned to work schedules other than Monday through Friday, the calendar day will be considered the holiday for premium pay of in-lieu scheduling purposes: Communications Water Quality Control Animal Control Golf Course Utilities Services Landfill Open Space Electric System Operator 2. If December 24 and 31 fall on Sunday, then the preceding Friday will be designated for purposes of excused time off, except in the case of Community Services staff who may be scheduled to work on Saturday, in which case Saturday will be designated for purposes of excused time off. For Open Space and Library personnel, designation of excused time off will be based on Park and Library schedules and employee preference. City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 66 of 70 APPENDIX F. COMMUNICATIONS DIVISION PROMOTIONS 1. Promotional opportunities within the Communications Division will be carried out in compliance with procedures set forth in Article VI, Section 5, of the Memorandum of Agreement between the City and SEIU Local 521, except that: a. In sub-paragraph (e) of Article VI, Section 5, the term "seniority" shall be defined as division seniority. b. Division seniority will be calculated from an employee's first day of employment in the division, minus any unpaid leave. City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 67 of 70 APPENDIX G: SIDE LETTER OF AGREEMENT SIDE LETTER OF AGREEMENT ON CPA-SEIU CLERICAL STUDY 1. The parties will meet and confer over newly proposed clerical job descriptions. 2. Upon completion of the above meet and confer process, the City will issue any new or revised re-allocation letters to affected clerical employees within 15 working days. 3. The Union and/or affected employees will have 15 working days to appeal any reallocation to the Human Resources Director. 4. Allocation appeals will be heard by the Human Resources Director or designees within a reasonable timeframe agreed to by the parties. 5. Decisions from such appeals will be issued by the City within 15 working days of each appeal. 6. The Union and/or affected employees will have 15 working days from receipt of the allocation appeal decision to further appeal the matter to Binding Arbitration, pursuant to the provisions of Article XIX, Section 4, Step IV (Grievance Procedure) of the MOA. 7. The City and the Union agreed to conduct a clerical study in May 2004. The study was completed in May 2006. It is expected that classification and compensation changes will be made as a result of this study. The City and the Union are to meet and confer over the results of the study. Any changes to classification or compensation as a result of this process will become effective 5/1/06. City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 68 of 70 Appendix G SIDE LETTER RE: Recovery of City Training Costs In recognition of the extended training provided to affected employees, the Parties agree that the City may recover up to thirty percent (30%) of its cost for training employees, hired on or after July 1, 2012, in the Field Services Representative and Lineperson/Cable Splicer Apprentice classifications if the employee voluntarily terminates from the City or abandons his or her City employment before completing three years of City service in the Field Services Representative or Lineperson/Cable Splicer classification. The amount recovered shall reasonably reflect the City’s cost for the training, but will exclude all wage or benefit costs, and will be prorated to reflect the portion of the thirty-six (36) month post-training service period remaining at the time of the employee’s termination. As of July 1, 2012 thirty percent (30%) of the City’s cost for training employees in the Lineperson/Cable Splicer Apprenticeship Program was $30,000 for the three years of the pre-existing three year program. For the Field Service Representative, thirty percent (30%) of the City’s two year training cost was $5,550. The employee will be required to sign an agreement providing for reimbursement to the City as provided above on the form attached hereto as Appendix H. City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 69 of 70 APPENDIX H RECOVERY OF TRAINING INVESTMENT AGREEMENT This Agreement is entered into between ___________ (“Employee”) and the City of Palo Alto (the “City”), as authorized by the Memorandum of AgreementUnderstanding between the City and SEIU Local 521. RECITALS A. The purpose of this Agreement is to limit the City’s risk that it will invest substantial sums in the Employee’s training but potentially lose the value of that training if the employee terminates without rendering substantial journey level service to the City after training. B. The City and SEIU Local 521, the employee’s collective bargaining representative, have agreed that the City may require reimbursement from Employee of thirty percent (30%) of the total training cost for _______position, subject to abatement when specified service requirements are met. C. On or about (date) City extended to Employee a conditional offer of employment in the position of _________(position), subject to Employee’s agreement to complete the training necessary to perform the duties of _______ (position), under the terms of the training program. The ______(position) requires [description of training], which as of July 1, 2012 cost the City approximately $ over the course of the training. D. This agreement sets forth the Employee’s agreement to reimburse the City for the City’s investment in the Employee’s training if the employee voluntarily terminates from the City prior to the completion of thirty-six months of service following successful completion of the training. THEREFORE, the Parties agree to the terms set forth below: By signing this agreement, the Employee understands that s/he is bound by agrees to the following terms: 1. ____________________________________ (hereafter “Employee”) agrees that in training Employee for the position of _________________________________________, the City of Palo Alto (hereafter “City”) incurs a total cost of $___________. [this may need to be adjusted based on structure of training.] City of Palo Alto andsto SEIU Local 521 Tentative AgreementComprehensive Package Proposal July 52, 2012 (Updated July 35, 2012) Page 70 of 70 2. Employee agrees that amounts recoverable under this agreement do not include Employee wage or benefit costs. 3. Employee agrees that in the event he/she voluntarily terminates or abandons his or her employment from the City prior to the completion of thirty-six (36) months of service following the successful completion of his or her apprenticeship, he/she will repay the City for the cost of training noted above, prorated to reflect the months of service the Employee has completed following successful completion of their training. Employee agrees that for the purpose of this agreement, “time of service” shall begin on the date following the successful completion of the Employee’s training. 4. Employee agrees that the aggregate amount of repayment due will be determined based upon the attached proration table. 1.5.Employee agrees that repayment shall be due and made in equal monthly installments over the twelve (12) months immediately following termination, on the first of each such month. 6. If Employee does not fully reimburse the City for the amounts due when due, the entire aggregate amount owed will become immediately due, the employee will be deemed in default on this agreement and the City may initiate legal proceedings to collect said amounts. Employee will be responsible for all reasonable collection costs and attorney fees incurred by the City in undertaking such proceedings. The City may elect to forbear taking such action to allow Employee the opportunity to become current on the debt. Such forbearance will not alter the Employee’s default status or adversely affecting the City’s right to later initiate proceedings for recovery pursuant to this Agreement. 7. This agreement shall be effective on the date listed below. DATED: ___________________ ______________________________________ Employee ______________________________________ **Title**, City of Palo Alto City of Palo Alto (ID # 3034) City Council Staff Report Report Type: Action ItemsMeeting Date: 7/23/2012 Summary Title: Implementation of Terms for Police Managers' Association Title: Adoption of A Resolution Implementing Terms for Police Managers’ Association Pursuant to Government Code Section 3505 From: City Manager Lead Department: Human Resources Recommendation Staff recommends that the Council hold a public hearing and adopt the attached resolution implementing the changes described in this report to certain terms and conditions of employment for employees in the Police Managers’ Association. Background The Police Managers’ Association (PMA) petitioned to form a bargaining unit in September 2009, which was accepted by the City on October 29, 2009. Previously they had been members of the unrepresented Management/Professional Unit. This group consists of two (2) Police Captains and five (5) Police Lieutenants, all sworn officers. The current average salary for PMA members is $165,000. The City and PMA began negotiations over two years ago, in January 2010, The parties have held 28 formal meetings and numerous informal discussions and exchanges, including a 6- month period in FY 11 during which the City had in-depth discussions with all labor groups about retiree medical benefits and the PMA president took the lead on the labor side of those discussions. The Meyers Milias Brown Act (“MMBA”) requires the City to bargain in good faith, and prohibits it from changing terms and conditions of employment for represented employees without completing good faith negotiations and legally mandated impasse procedures. Thus, when the Police Managers formed a union in 2009 the City was generally required to maintain the status quo on benefits until changes could be negotiated through collective bargaining. After negotiating in good faith to impasse, California Government Code Section 3505.7 allows the City to implement the terms of its last, best, and final offer after completing applicable impasse procedures and holding a public hearing. Although implementation does not establish a Memorandum of Agreement, the implemented terms will change the status quo on items implemented until the parties can reach agreement. Following implementation, the City is still required to negotiate matters within the scope of representation and, at a minimum, must meet and confer prior to adoption of the budget for the next fiscal year. On May 23, 2012 the City declared impasse in the PMA negotiations. A new state law effective January 1, 2012 allows a union to request fact-finding as an impasse procedure within 30 days of the declaration of impasse. If fact-finding is requested, the City must complete that process prior to implementing terms. However, the PMA did not submit a request for fact-finding. Therefore, section 3505.7 allows the City to implement terms after holding a public hearing. Given the extensive period of time the parties have been bargaining, the detailed discussions and exchange of ideas without final agreement, and that the PMA’s proposals on retiree medical have not met the City’s fundamental objectives of cost and risk sharing, staff believes that continued discussions would be futile. Further, the lack of overall agreement has prevented the City from establishing a second pension tier for police officers and police managers which is a high priority structural change for the City and one that has already been completed for miscellaneous employees and fire fighters and fire managers. Discussion The parties have been bargaining for an initial MOA for more than two years. During these PMA negotiations the City also negotiated and reached significant concessionary agreements with the fire union and fire chiefs, as well as the police union. The City has focused on negotiating three key concessions consistent with those established with the Management/Professional unit and Fire Chiefs’ Association: (1) an employee cost share for medical premiums of 10% for active employees, (2) a contribution toward medical by future retirees and (3) creation of a reduced second pension tier. SEIU and IAFF have also agreed to contracts with these three concessions. The PMA and the City have drafted and signed tentative agreements on all subjects except a contribution to medical premiums for future retirees, an issue on which the parties remain fundamentally at odds and substantially protracted the negotiations. The City proposed the same language for PMA that SEIU, IAFF, FCA, and Management now have, which provides that the City will pay the same amount for future retirees that it pays for active employees. The result of this language is that since active employees pay a portion of the medical premium costs, future retirees will also share in that cost. Although the PMA proposed several alternatives to the City’s proposal, the City rejected those alternatives because none involved contributions from employees in retirement. Although the PMA argued that some alternatives could save the City more money than the City proposal, the City does not believe that it is appropriate to exchange potential short term monetary savings for a long term structural change that requires employees to share in the cost and the risk of this benefit. The City strongly believes all employees should share in the sacrifices made to find solutions to our problems of escalating pension and medical costs, and has been negotiating similar language to establish modest employee cost sharing for pension and medical benefits across all units. Sharing the risk of future increases invests everyone in focusing to keep future costs down. The City not only faces economic pressures in the current budget, but also has concerns about projections for the next 10 years that indicate steep increases in medical and pension costs will continue. The structural change of employee and future retiree contributions to medical premiums recently established for miscellaneous employees and managers as well as all fire employees has had a positive impact, reducing the City’s OPEB liability by approximately $15 million. Alternatives put forth by the PMA such as requiring current employees to contribute more as active employees in lieu of medical contributions as retirees or substantially reducing the benefit for new hires in lieu of not requiring a retiree medical contribution, would mean that a group of current employees would not have to share in the costs and the risks. The City does not believe it is fair or in the best interest of the City’s long term financial health to exempt PMA from having to make contributions as future retirees. To help provide perspective on the magnitude of the problem, an April 2010 CalPERS study found lifetime expectancy to be slightly higher than age 80 for both men and women, including those in public safety. Recent history shows 3 of the 7 members of PMA recently retired on their 50th birthday. There could be in excess of 30 years of medical coverage after retirement for each of these former employees. Right now the City carries the full burden to fund medical coverage for retirees and their families and carries all of the risk for all future premium increases. In just the past two years the City's accrued unfunded actuarial liability for retiree medical benefits has grown from $105 million to over $130 million. With this year's average PERS medical premium increase of nearly ten percent, there is little reason to feel optimistic that this number will stop growing, making the need for everyone to contribute even more critical. Therefore staff recommends implementing the following terms for this unit, all of which were tentatively agreed to by both parties prior to the City’s declaration of impasse, except the provision on addressing retiree medical: 1. Second pension tier with the formula of 3%@55 and final salary calculation based on an average of the 3 highest years rather than the single highest year. The parties reached a tentative agreement to modify the City’s contract with CalPERS to establish a new tier of pension with a reduced formula of 3%@55 and to change the way final salary is calculated for purposes of determining the monthly pension amount. Current employees use the single highest year of salary, future new employees will use an average of the highest 3 years instead. These changes to pension may only be applied to future new hires pursuant to CalPERS rules and will apply to future new hires in the Police Officers’ Association (POA) and members of PMA. The POA agreed to this change in their new contract adopted 5/14/12, but the City has not been able to move forward to establish the second tier until it is approved for PMA due to PERS rules. 2. Medical cost share of 10% for active employees. Until 2009, the City paid the entire cost of an employee medical plan up to the family level. Since that time the City has bargained for employee contributions to medical premiums of 10% across all bargaining units and the unrepresented Management/Professional employees. The City believes that employees should share in the cost of this benefit, the risk of future premium increases, and that employees are better consumers of medical services when they are responsible for some of the cost. The parties reached a tentative agreement on this issue but have not been able to put it in place without approval of the package agreement by PMA. 3. Medical cost share by future retirees The City has bargained for and put in place pattern language across all bargaining units plus the unrepresented Management/Professional group providing that the City will make the same contribution toward medical premiums for future retirees that it makes for active employees. The exception is the Police Officer’s Association and Police Managers’ Association. The Police Officers’ Association and the City are at Impasse on this issue and are in the process of completing Fact-finding procedures on this issue. The City proposed the same pattern language for PMA and PAPOA. The City and PMA exchanged numerous proposals on this topic. All of the PMA proposals were designed to exempt current employees from making a contribution as future retirees. The City rejected those proposals on the basis that the City seeks a consistent and equitable approach to structural change in the retiree medical benefit and exempting one unit of highly paid managers from modest cost share does not meet the City’s philosophical or economic goals. Given that the parties were not able to agree after significant discussion and exchange of ideas and proposals, staff recommends the Council implement the City proposal The City’s contribution to retiree medical for future retirees will be the same City contribution as it makes for active City employees. By implementing the active employee contribution discussed above, the level of contributions will be 90% (City) and 10% (employee) unless and until the parties negotiate something different. 4. Establish a Retirement Health Savings Plan The City and PMA reached a tentative agreement to establish a Retirement Health Savings Plan to provide for a pre-tax mechanism for employees to set aside their own money in an account to be used post retirement for healthcare costs subject to IRS rules and Plan guidelines. The City supports this as a proactive approach to assist and encourage employees to plan for their future. 5. Modify Vacation Cash Out Procedure to Comply with IRS Guidelines The parties reached tentative agreement on this issue. The City met with all bargaining units last fall to update the City’s process for cashing out accrued vacation to ensure compliance with IRS requirements. 6. Management Annual Leave Accrual Timing This provision changes the Management Annual Leave accrual from a fiscal year basis to a calendar year basis to coordinate better with the cash out procedure described above. The parties also reached tentative agreement on this issue. The City believes that implementing these terms at this time is reasonable given the extensive period of negotiations, the fact that all (or in the case of the retiree medical provision, nearly all) employees are already subject to the same provisions, and that the parties have reached tentative agreements on all but one of these issues. Staff regrets that a negotiated deal could not be reached, but given the PMA’s continuing refusal to respond to the City’s key goals for retiree medical, believes that further discussion of that topic at this time will be futile and only serve to further delay the other important changes proposed for implementation. Resource Impact Implementation of the above terms with PMA will have expense savings and cost avoidances. Annual Savings 10% contribution toward medical costs for Active employees $11,000 Savings or cost avoidance from the second tier pension formula of 3%@55 and 3 year average will not be realized for approximately two years after the second tier is implemented. Policy Implications This recommendation is consistent with City Council direction to achieve structural changes in employee compensation for short-term and long-term savings. Environmental Review Implementation of terms is not a project subject to review under the California Environmental Quality Act (CEQA). Attachments: Reso Imposing Terms of Last Best Final Offer PMA (PDF) Prepared By: Elizabeth Egli, Administrative Assistant Department Head: Kathryn Shen, Director, Human Resources City Manager Approval: ____________________________________ James Keene, City Manager City of Palo Alto (ID # 2966) City Council Staff Report Report Type: Action ItemsMeeting Date: 7/23/2012 July 23, 2012 Page 1 of 16 (ID # 2966) Summary Title: Palo Alto Golf Course Reconfiguration Project Title: Transmittal of Finance Committee recommendation to reconfigure the Palo Alto Golf Course, and staff recommendation to negotiate an amendment to existing contract with Golf Course Architect Forest Richardson & Associates to complete Finance Committee's recommended design and environmental impact analysis for up to $336,835 From: City Manager Lead Department: Community Services Recommendation The Finance Committee recommends to Council that staff be directed to pursue Golf Course redesign Option G, which adds space for up to three full-size athletic fields and re-configures the entire Golf Course (Attachment A) for the Palo Alto Municipal Golf Course (Golf Course) to mitigate impacts from the San Francisquito Creek realignment project, and; Staff recommends the City Manager be authorized to negotiate an amended contract with Golf Course Architect Forrest Richardson & Associates (Richardson) to complete said design and environmental impact analysis for up to $336,835.00 (Attachment J – draft scope of services) in order to pursue the final designs for the Golf Course. Executive Summary The San Francisquito Creek Joint Powers Authority (SFCJPA), an agency serving residents in a 45-square-mile watershed that includes the City of Palo Alto, has entered into a contract with Forrest Richardson to perform preliminary Golf Course design services for the reconfiguration of several holes of the Palo Alto Municipal Golf Course (Golf Course) in order to accommodate a new creek levee that will be built as part of the San Francisquito Creek Flood Protection and Ecosystem Restoration Capital Project (“Project”). The purpose of the Project is to provide the flood protection elements needed to protect homes, businesses, and other facilities in the cities of Palo Alto and East Palo Alto downstream of Highway 101, and to provide sufficient conveyance of rainwater to accommodate future flood protection projects upstream of the Project reach. July 23, 2012 Page 2 of 16 (ID # 2966) The SFCJPA is required to mitigate impacts of the project to the Golf Course, but only to the extent that the Golf Course be restored to a condition post project equal to current conditions. Staff has worked over the past year with the SFCJPA and Richardson to create Golf Course reconfiguration alternatives to support the flood control project while also taking advantage of the opportunity to design a more interesting, inviting and playable Golf Course that has the potential to make the Golf Course more financially viable in the future. Using information from staff, City Council, Parks and Recreation Commission and broad community input, Mr. Richardson has narrowed the Golf Course reconfiguration options from seven options to four. These four options (Attachment A) were presented to the Finance Committee on March 6, 2012. The four Golf Course re-configuration options included: Option A - the simplest, least expensive option with minimal Golf Course improvements beyond what is required for the SFCJPA mitigation; Option D – enhances the Golf Course considerably with relatively low costs beyond SFCJPA mitigation; Option F - adds space for one athletic field and re-configures the majority of the Golf Course; and Option G - adds space for up to three full-size athletic fields and re-configures the entire Golf Course. The staff report from the March 6, 2012 Finance Committee meeting (Attachment B) addressed many of the Council’s questions raised at the December 5, 2011, Council study session and provided details on costs and Return On Investment, along with the opportunities and challenges that each design option presents. The Finance Committee reviewed and discussed the options and unanimously preferred Option G for a variety of reasons. The opportunity to devote 10.5 acres of existing Golf Course land for possible playing fields was particularly appealing. The Committee reasoned that the cost of land acquisition in Palo Alto is extremely expensive; the possibility the City would be able to purchase 10.5 acres for other park and recreation needs in the future is highly unlikely, making this a unique opportunity. Furthermore, the financial analysis by the National Golf Foundation (Attachment C) was particularly compelling for Option G, which influenced the Finance Committee’s unanimous decision to recommend this alternative. Of the four alternatives, Option G has the highest return on investment over-time compared to the other plans, according to the National Golf Foundation analysis. Additionally, the concept of a more Baylands oriented golfing experience with significantly more naturalized areas, a smaller turf footprint (less fertilization, pesticide application and water use), and an integrated marketing theme promoting an environmentally-friendly “Baylands” golf theme was very compelling to the Finance Committee. July 23, 2012 Page 3 of 16 (ID # 2966) To test Option G results, staff requested that NGF perform a financial sensitivity analysis. The potential lower fee scenario had the least impact on Golf Course finances. The reduced rounds pro-forma showed a more significant impact on operating results while a reduced fee and rounds scenario had a considerable negative impact on operating results. Due to the time sensitivity of the Project, the City needs to determine what it intends to do with the Golf Course prior to the levee reconstruction work beginning. The levee Project could begin as early as summer 2013. In order to complete the Golf Course reconfiguration designs and environmental analysis, return to Council for approval, and be ready to bid the work for a potential start in summer 2013, staff needs direction from Council on which design option to pursue at this time. Background The Golf Course was constructed in the mid-1950s, on approximately 170-acres of flat former salt marsh and bay fill. The course was designed by noted golf course architects, William P. and William F. Bell, of Pasadena, California. The Golf Course, designed as an 18-hole facility with a par of 72, is a classic championship course that measures over 6,800 yards from the back tees. The original facility included a large practice putting green, a three-building Eichler-designed clubhouse/golf shop complex and parking lot. In the mid 1970’s, improvements were made to replace the clubhouse buildings. At that time, holes 3, 10, 11 and 18 were also renovated under the direction of golf architect, Robert Trent Jones, Jr. Further improvements were made to the Golf Course in 1998. The improvements included the rebuilding of Greens on holes # 4, 5, 7, 8, 11, 13, 15, 16; the rebuilding of new Tees on holes # 4, 7, 13, 15; the rebuilding of Fairways on holes #4, 7, 13, 15, 16; a new storm drain station along with drainage and 35 catch basins throughout the course; new irrigation system; and a new irrigation pump station. (See Attachment E – Current Golf Course configuration) The Golf Course is located on a relatively flat site, which ranges in elevation from 4.4 feet below mean sea level to 7.5 feet above mean sea level. The capital improvements in 1998 were funded through public debt issuance of $7 million, and will expire in 2018. According to the National Golf Foundation’s analysis and pro-formas (See Attachment C for net income/loss for Options A, D, F and G), Golf Course revenue is expected to pay for all operating costs including debt service annually except for a two year period when the course is under construction and re-establishing golf play after the renovation. In 2008, the City of Palo Alto (City) conducted a Golf Course operational study that describes in detail the conditions of the Golf Course, future needs, and opportunities (Attachment F - Golf Course Operational Study, staff report CMR 446-08). The proposed SFCJPA flood control levee alignment will encroach onto the Golf Course. Conceptual alternatives for reconfiguration of the Golf Course necessitated by the levee realignment have been contemplated by the City, SFCJPA, and the SFCJPA’s design consultant on the Project and will likely involve significant changes to holes 12, 13, 14, 15, 16, 17, at a July 23, 2012 Page 4 of 16 (ID # 2966) minimum and possibly hole 4 as well. Modifications to holes not directly impacted by levee realignment will be required in order to maintain minimum separation distances between fairways as required for golfer safety. Given the anticipated scale of the changes that will be needed within the Golf Course, in January 2011, SFCJPA and City staff agreed that a golf course architect should be secured under a separate design contract in order to maintain fairness and transparency in the consultant selection process for this significant element of the Project. On June 9, 2011, SFCJPA staff, City staff, and members of the Golf Advisory Committee interviewed six golf course architects. After careful consideration, a unanimous decision was made to select Golf Course Architect Forrest Richardson & Associates. Richardson’s experience working with high saline turf conditions, renovations on other Bell designed courses, the hand- picked team he selected to ensure all work tasks can be accomplished for this project, and his experience working with a variety of agencies were key factors in his selection. In addition, his experience in conducting public outreach forums and making presentations, his demonstrated knowledge in successful golf course operations, and his understanding that this project should integrate cohesively with the rest of the Baylands were additional factors in his selection. Richardson has developed an updated Golf Course long-range plan with the help of Palo Alto community stakeholders as part of his contract’s scope of work. He believes strongly that the City should not re-design a portion of the golf course without a comprehensive view to ensure the entire 18-holes playing experience is sustained or enhanced. This approach was very well received by City staff and we are genuinely excited by the concepts that have emerged. Richardson has given particular thought to how the golf course can be designed in such a way to effectively utilize space and enhance the golfer experience in order to result in an increase in the patronage of the course, rounds of play and to generate revenue. His designs also provide for additional uses on the site, such as playing fields for other sports and recreational activities. It is helpful to think about this Golf Course planning project in two parts: Part A being the reconfiguring of the Golf Course which is unavoidable due to the flood control work. Part A would be funded mostly by the SFCJPA if the Golf Course re-design is limited to the flood control impacts. That is, if the City chooses to enhance the Golf Course beyond what is required to mitigate the flood control work (options D, F or G) the City will need to find additional funding sources to pay for the incremental difference in cost. The SFCJPA is not able to provide improvements to the Golf Course that go beyond direct mitigation of the flood control project. The incremental difference in cost ranges from $344 thousand to $4.4 million, depending on the Golf Course redesign chosen (Attachment A). It is important to note that the NGF report identifies in each option “Additional Work” for improvement of the Golf Course such as sand capping of new turf areas and reconstruction of greens. Except for Option G, the costs for this work are not included in the option pro-formas provided by NGF and would need additional financing if pursued. Moreover, any expenses associated with improvements to the pro-shop, restaurant, and practice facility are not included in NGF’s analysis. July 23, 2012 Page 5 of 16 (ID # 2966) Part B of the Golf Course planning project is the long-range master planning. This includes a vision for the club-house, practice facility, parking area and entrance. This more comprehensive long-range planning is important to do concurrently so that the design to reconfigure the Golf Course (Part A) is unified with the long-term vision of the Golf Course asset. The full implementation of the comprehensive long-range plan may not occur for some time, pending further financial analysis. An interesting idea related to the long-range master plan is exploring the feasibility of relocating the Julia Morgan (MacArthur Park Restaurant and former community center) building to the Golf Course as part of a replacement club house facility. Staff has shared the existing 1994 Golf Course Master Plan with Mr. Richardson, along with the 2006 staff report that explored the potential for adding sports playing fields to the Golf Course (Attachment G – CMR 168-06), and the 2008 Golf Course Operational Analysis by Economics Research Association (Attachment H - Golf Course Operational Study - Executive Summary). Public outreach meetings with Richardson were built into the scope of work and contract with the SFCJPA. The public meetings ensured that Golf Course stakeholders and the public had multiple opportunities to ask questions, make suggestions, and receive updates on the project. Tentative Time-line and Public Meetings 1 Golf Advisory and General Public 8/18/2011 2 Parks and Recreation Commission 10/28/2011 3 Golf Advisory and General Public 10/24/2011 4 City Council 12/5/2011 5 Community Input Meeting 1/26/12 6 Parks and Recreation Commission 2/28/12 7 Finance Committee 3/6/12 8 Parks and Recreation Commission 4/23/12 9 Golf Advisory and General Public 5/16/12 10 City Council 7/23/12 11 Golf Advisory and General Public 8/22/12 12 Architectural Review Board September 2012 13 Planning Transportation Commission Sept/Oct 2012 14 Parks and Recreation Commission Sept/Oct 2012 15 Architectural Review Board Sept/Oct 2012 16 Planning Transportation Commission Nov /Dec 2012 17 Golf Advisory and General Public Nov /Dec 2012 18 SFCJPA Board Nov /Dec 2012 19 City Council Nov /Dec 2012 On December 5, 2011, the City Council had a study session on the Golf Course project where staff and Richardson presented the three most promising design concepts. Council asked many July 23, 2012 Page 6 of 16 (ID # 2966) questions ranging from acreage of the Palo Alto Golf Course compared to neighboring golf courses, demographic data and can more athletic fields be added along with cost and return on investment for the various options. A summary of the questions and staff responses can be seen in Attachment I. Discussion Chief among the feedback from Council in December was the need for broader public input on the future of the Golf Course. On January 26, 2012 staff held a public meeting and reached out far and wide for additional public perspective. Among the outreach efforts were: Advertisement in Daily Post Advertisement in PA Daily News Advertisement in PA Weekly Airport Athletic Field Users Authors of the Got Space Study City Website Environmental Volunteers Flyers - Libraries, Community Centers, Parks, Golf Course Friends of the Baylands Golf Advisory Committee Neighborhood Associations PA Golf Clubs Parks and Recreation Commission PTA Council Save the Bay (environmental concerns) The context of the meeting was defined as follows: “The Palo Alto Golf Course is being impacted by the realignment of the San Francisquito Creek Levee Project. Given this unique situation, the City is considering reconfiguration and other alternatives for the Golf Course in the context of the community’s overall parks, open space and recreational needs.” There were 85 participants at the January 26 community meeting and the feedback received was very informative. The participants generally fell in three categories of interest, Golf, Athletic Fields and the Natural Environment. There was more conceptual synergy between Golf Course advocates and the environmental interests. Both groups are interested in more natural areas and habitat for local species. A Golf Course that reflects the Bay in look, feel and experience was an exciting proposition to many participants. Athletic field users were smaller in July 23, 2012 Page 7 of 16 (ID # 2966) number at the public meeting than golfers but they were also heard. With more children in our schools today - and that trend likely to continue - and the growing interests in year-round soccer and increasing interests in other sports such as lacrosse and rugby, the desire for more athletic fields or better utilization of existing athletic fields (or both) is important to field user groups. However, field user representatives were not necessarily convinced the Golf Course was the right place for additional athletic fields; rather they wanted to express the desire for more athletic fields in Palo Alto generally. Understanding and defining the athletic field demand and supply issue would benefit from more analysis, perhaps as part of the recommended Park and Recreation Master Plan that was approved in the 2013 CIP budget. Other highlights from the community meeting were concerns about cost and how options F or G would be funded. Also, the compatibility of noise from athletic fields with the golfing experience was a concern to some participants. Overall there was unanimous support for having a public golf course; all participants whether they came to the meeting to express other recreation, park or open space interests believed the Golf Course is an important community asset that should be maintained and enhanced, if possible. Another key direction Council gave staff at the December 5th study session was to explore a fourth design option that would include space for multiple athletic fields. Council also wanted to see additional cost analysis and Return On Investment (ROI) for the design options being considered. The four design options, including one that provides a new multiple athletic field option (Option G), are described in Attachment C. This attachment includes estimated costs of Golf Course reconfiguration and related Return On Investment. As mentioned in the Executive Summary of this report, the Finance Committee preferred Option G because of the unique opportunity to create 10.5 acres for possible playing fields or other recreational facilities. Furthermore, the financial analysis provided by the National Golf Foundation suggests Option G shows the highest return on investment over-time compared to the other alternatives. Lastly, the concept of a more Baylands-oriented golfing experience with significantly more naturalized areas, a smaller turf footprint (less fertilization, pesticide application and water use), and an integrated marketing theme promoting an environmentally- friendly “Baylands” golf theme that are provided for in Option G was very attractive to the Finance Committee. Another consideration of the Finance Committee’s recommendation was the cost of required replacements to infrastructure on the existing golf course. Root zone (soils), bunkers, drainage and irrigation are all in various stages of needing replacement and will require future expenditure if not addressed now or over the next few years. The existing irrigation system, as an example, is now approaching its fifteenth year of service and is experiencing frequent breaks where metal joints are deteriorating in the high salt environment. Only Option G would fully replace the irrigation system and address the other infrastructure needs with a combination of full replacement and/or renovation. Option G also facilitates replacement and renovation July 23, 2012 Page 8 of 16 (ID # 2966) during one consolidated construction cycle versus multiple interruptions to the course over several years. The Golf Course reconfiguration options were also presented to the Parks and Recreation Commission and the Golf Advisory Board. The Parks and Recreation Commission also favored Option G for many of the same reasons as determined by the Finance Committee. The Commission only had some reservations about this option which included the significantly higher cost compared to the other options. The Parks and Recreation Commission also felt the pro-shop, restaurant and practice facility would need to be improved to realize revenue projections (costs for these facilities are not included in NGF’s pro-formas). The Parks and Recreation Commission has provided their perspective and recommendation in a memo to Council which has been included as Attachment D. The Golf Advisory Committee is not fully supportive of Option G and prefers Option D. Their concerns are predominantly cost and the burden placed on golfer fees to pay for the additional debt needed to complete the more expensive Option G. The members of the Advisory group felt Option D invests relatively little over and above the SFCJPA mitigation money while providing significant enhancements to the Golf Course. The cost of Option G is $3,454,514 higher than Option D, largely because Option G involves reconfiguration to accommodate 10.5 acres for non-golfing purposes. The Advisory Committee expressed their opinion that the golfers should not be expected to pay for the entire course renovation if Option G moves forward. The Golf Advisory Committee also questioned the National Golf Foundations estimates that Option G will perform financially as forecast. Option D, by contrast, allows the Golf Course to remain open as a 9-hole course during construction, which is appealing to the golfing community in lieu of closure and having to play nearby courses. The Golf Advisory Committee has provided their perspective in a memo to Council seen in Attachment L. Below is a table of the construction costs of the 4 design options: Design Options Option A Option D Option F Option G Estimated Total Construction Costs $ 3,537,622 $ 4,118,748 $ 5,855,454 $ 7,573,262 Estimated Mitigation from SFCJPA $ 3,193,131 $ 3,193,131 $ 3,193,131 $ 3,193,131 Estimated net cost to the City $ 344,491 $ 925,617 $ 2,662,323 $ 4,380,131 A detailed probable cost of the design options can be seen in Attachment A, and analysis of how each design option is likely to perform in the golf market can be seen in Attachment C. Should the Council direct staff to pursue a design beyond the SFCJPA required mitigation the SFCJPA can satisfy its obligation by providing a cash contribution equal to mitigation activities to July 23, 2012 Page 9 of 16 (ID # 2966) the City for implementation of a larger project that meets the mitigation needs of the SFCJPA as well as additional objectives of the City. Since the March 6, 2012 Finance Committee hearing, Administrative Services and Community Services staff have asked the National Golf Foundation to refine their initial analysis to include a more conservative set of assumptions. As seen in the revised report (Attachment C), Option G continues to perform well compared to the other re-configuration options with a more conservative set of assumptions. Staff also asked the National Golf Foundation to provide financial sensitivity analysis on the expected number of golf rounds and potential for market driven fees for Option G, which has also been added to the National Golf Foundation report. All changes to the National Golf Foundation report from the original report presented to Finance Committee on March 6 are summarized in Attachment K. In order to complete the designs of Option G, staff recommends transferring Richardson’s current Golf Course design contract from the SFCJPA to the City. Because the design of Option G involves the complete reconfiguration of the existing golf course and not just the holes required for the mitigation, the scope of work of the Richardson/SFCJPA contract would not only be transferred, but also expanded. A revised scope of services and contract between the City and Richardson has been drafted and can be seen in Attachment J. The additional cost for design and environmental work is $336,835. Approximately $252,515 of the $336,835 expense would be incurred by the City in the 2013 budget year. Since the $252,515 in funding that is needed for design and environmental work is typically included in capital projects, staff recommends to Council that the funding come from the Infrastructure Reserve. Golf Course rehabilitation was part of the Infrastructure Blue Ribbon Commission’s (IBRC) purview and as such should be prioritized among other needs identified by the IBRC. It is expected that the final design work on Option G would refine the preliminary cost estimates provided by Richardson so that Council can make a later, more informed decision in pursuing Option G and ranking rehabilitation of the Golf Course among other General Fund infrastructure priorities. It is important to note that this one-time design cost has not been included in NGF pro-formas. Tentative Timeline The timeline below is driven by the SFCJPA who hopes to begin levee realignment work in 2013. Ideally the reconfiguration of the Golf Course would occur in advance or concurrently with the levee realignment work. The tentative timeline moving forward is summarized below: Summary: Golf Advisory and General Public Aug/Sept 2012 Architectural Review Board September 2012 Planning Transportation Commission Sept/Oct 2012 Parks and Recreation Commission Sept/Oct 2012 Architectural Review Board Sept/Oct 2012 July 23, 2012 Page 10 of 16 (ID # 2966) Planning Transportation Commission Nov /Dec 2012 Golf Advisory and General Public Nov /Dec 2012 SFCJPA Board Nov /Dec 2012 City Council Nov /Dec 2012 Construction start July/Aug 2013 Resource Impacts Expenses to Date The City contributes $98,000 to the SFCJPA budget annually. A budget of $137,000 for design and an estimated $3,193,131 for construction for mitigation to reconfigure the Golf Course as a result of flood control work has been established by Golf Course Architect Richardson. This represents design Option A and would be funded by the SFCJPA with an additional $538,000 invested by the City for capital improvements. Any Golf Course improvements that go beyond the essential flood control mitigation would be incurred at the City’s full expense i.e. design options F, D or G. In August 2011, the City entered into a contract with Forrest Richardson, separately from the SFCJPA, to develop Golf Course design options and long-range planning beyond SFCJPA mitigation. To date the contract with Forrest Richardson has cost the City $22,000. The City also entered into a contract with the National Golf Foundation to provide financial analysis on the design options and the long range Golf Course planning work. The contract with the National Golf Foundation cost the City $24,000. Finance Committee Considerations and Option G Investing City funds in the Golf Course, beyond SFCJPA mitigation, will require an understanding of Return On Investment (ROI). If for example the City pursues design Option G the City will need to provide $4,380,131 to make up the incremental difference between the SFCJPA mitigation funding (estimated to be $3,193,131) and the total construction costs for this enhanced design, estimated to be $7,573,262. Pursuit of Option G will require debt financing. The final design will bring several benefits such as reduced water use with increased natural areas and fewer acres requiring maintenance, along with a more interesting and appealing golf experience. These changes are predicted to provide an opportunity to increase rounds of play and revenue generated from fees. The probable cost for Option G (Attachment A) is inclusive of recommendations by the Finance Committee, to extend to full replacement of all of the turf areas of the golf course, replace the existing on-course restroom, and fully replace the existing practice putting green area. Again, these additional replacement measures are not a part of the probable cost estimates for Options A, D or F. Another critical factor bearing on the four design options is the existing Golf Course irrigation system which is nearing the end of its useful life and is experiencing frequent breaks and failures. The high salt intrusion has compromised the system and has resulted in regular main- July 23, 2012 Page 11 of 16 (ID # 2966) line breaks and failures. The capital improvement to the irrigation system in 1998 is not lasting as long as initially anticipated by the designers of the 1998 improvements. Consequently, staff believes replacing the irrigation system as part of the reconfiguration project is a very prudent strategy. Advancements in plumbing materials will now allow the replaced system to be installed with fused joints instead of metal fittings that have been the primary cause of system failure with the 15-year old system. Option G provides for a complete replacement of the golf course irrigation system. SFCJPA Mitigation Staff recognizes that there will be a short-term loss of revenue due to decreased rounds played during the Golf Course reconfiguration construction period. The length of the construction period is unknown at this time but could begin as early as Summer 2013. The construction will impact the number of rounds played and affect the City’s tenants (Brad Lozares from the Golf Course Pro Shop and Tom Talai at the Bay Cafe Restaurant). Staff has worked with SFCJPA to explore appropriate mitigation as the timeline and levee design work progresses. The available mitigation dollar amount the SFCJPA feels able to pay is approximately $3,193,131, which is the estimated cost to reconfigure the Golf Course limited to the flood control impacts. The net loss to the City for design option A is estimated to be $1.08M. The mitigation amount of $3,193,131 does not address lost revenues; value of land to support the new levee or lost parking at the Baylands Athletic Center. The table below summarizes the estimated costs along with benefits resulting from the flood control work. Staff recognizes that the flood control project is incredibly important to the City of Palo Alto and partner organizations on the SFCJPA Board and understands the notion of mitigation money from the SFCJPA to offset all costs inclusive of land contribution and lost revenue may not be feasible. Staff does, however, believe it is important to document the City of Palo Alto’s contribution to the overall flood control project for possible future credit toward flood control projects yet to occur upstream: Costs vs. Value Added Dollars Comments Costs City revenue loss during construction of new levee $ 1,080,000 Based on National Golf Foundation Pro Formas - Plan A (pg. 47) Golf Course design and construction costs for Plan A $3,193,131 Based on Forrest Richardson's revised Plan A cost estimates 7.5 acres of Palo Alto park land for new levee $12,900,000 Estimated value of land provided by ASD/Real Estate Loss of overflow parking at the Baylands Athletic Center $282,000 Estimated value of lost parking spaces provided by Planning staff Value Added July 23, 2012 Page 12 of 16 (ID # 2966) Flood protection ? Estimated value of flood protection provided by SFCJPA Improved Golf Course $(800,000) Based on Mr. Richardson's memo titled "Palo Alto Golf Course - Increased Value with Plan "A" Investment Construction Costs Construction costs for option G are estimated to total $7,573,262. Of this total staff estimate $3,193,131 could be paid for by the SFCJPA. The remaining $4,380,131 would be financed over 20 years with the debt payments to come from Golf Course revenues. The financial analysis provided by the National Golf Foundation indicates the redesigned and improved Golf Course will be able to fully meet this obligation. Golf Course design option G includes 10.5 acres for possible playing fields or other recreation need. The construction costs above ($7,573,262) allows for grading the area for drainage and basic seed cover. Design and construction of the playing fields or other recreation amenities is not included in the cost estimates for the golf course reconfiguration. Should the City pursue developing the 10.5 acres, the design and construction costs will be in addition to the above Golf Course design and construction. Financial Risks and Issues To help assess the potential financial performance of the Golf Course design options, staff entered into a contract with the National Golf Foundation to provide independent Return On Investment analysis on the design options and long-range Golf Course plan. Golf Course Pro- Formas for each of Richardson’s design options can be seen in Attachment C. There is risk associated with the each of the golf course reconfiguration options. However, Option G being the most ambitious design carries with it the highest risk. In an effort to better understand the risk, staff asked the National Golf Foundation to provide sensitivity analysis on the expected number of golf rounds and potential for market driven fees for Option G, which has also been added to the National Golf Foundation report. All changes to the National Golf Foundation report from the original report presented to Finance Committee on March 6 are summarized in Attachment K. The sensitivity analysis is discussed below. There is also risk associated with not making a significant investment in the Golf Course. The Golf Course has experienced a consistent decline in annual rounds played over the past seven years, from 78,000 annual rounds in 2005, to 68,000 in 2012. The decline in annual rounds is indicative of golf play across the county, and the Bay Area has not been immune to this trend with most Bay Area golf courses experiencing declines in play. It should be noted that the Palo Alto Golf Course is doing better than most public golf courses experiencing less of a decline than key competitors. However, the decline in play is nevertheless troubling. The Palo Alto Golf July 23, 2012 Page 13 of 16 (ID # 2966) Course is in a prime location on the peninsula and has tremendous market share potential, but staff often hears comments from users that the course it is too flat, too long and too uninteresting. A redesigned, Baylands-themed Golf Course, which is unique and provides a more compelling golf experience, is what the City needs to do in order to reverse the trend of declining rounds. The National Golf Foundation feels confident that this is indeed the case, and the investment will generate renewed interest in the Palo Alto Golf Course. As with all financial analyses and projections, results depend on the assumptions used. The further a projection goes out in time, the less likely results will materialize as anticipated. As NGF discloses, varying the assumptions, along with such factors as weather and economic conditions, can change pro-forma projections. Overall, and with a few qualifications, ASD staff view NGF assumptions on revenues and expenses as reasonable. By building on historical revenues and expenditure data, NGF develops a sound base upon which to evaluate Golf Course options. Modifications to revenues and expenses based on construction and reopening of the course are reasonable, but could vary. One of the most sensitive and key variables in the pro-formas that affects the bottom-line, and especially in Option G given the need to issue and cover approximately $4.6 million in debt, is the projected number of rounds played. Indeed, rounds at the Golf Course, which at one time surpassed 90,000 rounds annually, have as noted above, dropped from 78,000 in FY 2008 to 67,400 in FY 2011. To address this concern, the NGF was asked by staff to conduct a sensitivity analysis around Option G. The “base” projection for Option G is presented on pages 39-44 of Attachment C and the sensitivity analysis can be found on pages 49-55. The Option G pro-forma shows favorable financial results for the Golf Course. Except for the under-construction years of FY 2013 and 2014 where Golf Course operations will need a cumulative $583,000 subsidization to cover expenses, positive net income ranges from $34,000 in FY 2015 to $737,000 in FY 2021. Debt service on old and new debt is included in the pro- forma and the old debt from 1998 will be retired in FY 2019. The assumption for new debt was based on a 4.5% interest rate on a $4.6 million financing repaid over 20 years. In the current market, a 4.5% rate appears acceptable. Issuance costs do not appear to be incorporated in the analysis and these would add approximately $11,000 to annual debt service expense. The rounds assumed in Option G would rise from 65,000 in FY 2012 to 76,000 in FY 2021, a level the Golf Course has attained in the past and one the consultant believes achievable based on the market and course improvements cited in Option G. It is important to note that Option G includes steadily rising user fees over time that NGF also believes is achievable and sustainable. Sensitivity analysis modifying Option G assumptions and results was performed under 3 scenarios: 1) reduced rounds; 2) lower average green fees; and 3) both lower rounds and average green fees (see page 49 for details on changes in rounds and fees). The bottom lines or net income for Option G and the 3 scenarios are shown in the following table and are expressed in thousands (dollars). Bottom Line Results from NGF Analysis for Option G and Sensitivity Scenarios in -$000s- July 23, 2012 Page 14 of 16 (ID # 2966) 2013 2014 2015 2016 2017 2018 2019 2020 2021 Option G (124) (459) 34 198 363 349 345 743 737 Lower Rounds (124) (459) (544) (343) (138) 39 33 428 418 Lower Fees (124) (499) (115) 38 191 176 170 567 559 Lower Fees/Rounds (124) (499) (658) (471) (279) (115) (123) 270 259 As stated above, Option G will need a projected subsidy or loan of $583,000 to keep whole. This amount has not been included in the pro-forma, but could be repaid within a reasonable number of years by future cash flows from Option G. The sensitivity scenario of least impact is that of lower fees since it would add $155,000 to the subsidy. Again, in this scenario there is adequate capacity to repay the subsidy from future cash flows. The next highest, negative impact comes from lower rounds which add a considerable $1.0 million in subsidy. The third, lower fees and round worst case scenario pushes negative net income out from FY 2014 to FY 2019 and adds $1.7 million to the original option G. Obviously, should rounds fall below those projected in Option G or if rounds and fees fall below expectations, considerable pressure will be brought to bear on Golf Course operations. In such situations, operating costs for the Golf Course would need to be curtailed and other Community Services or City operating and/or capital funds would need to be reallocated to maintain a balanced budget. In addition, the NGF has built into all pro-formas at least a $200,000 annual contribution to an operating and capital reserve. Not funding this otherwise prudent reserve could offset some of the results from lower fees and/or rounds. If the City moves forward with Option G, it is likely that the City would use Certificates of Participation as the financing vehicle, if approved by the Council. COPs were used in 1998 to finance Golf Course capital improvements where the revenue streams of the Course were pledged as the credit. Using GO bond rates as a proxy, the NGF estimated debt service at around $351,000 at a 4.5% rate over 20 years. This figure is reasonable at this time, but could rise when the City issues debt. In conclusion, and given the Finance Committee’s recommendation, staff believes that funding the final design and EIR for the Golf Course will provide the Council with more enhanced information on capital costs and whether to move forward with the Option G project. Staff believes it optimal to analyze Option G in the context of the General Fund’s overall infrastructure needs and resources. Policy Implications The Project is consistent with Policy C-24 and Policy C-26 of the Comprehensive Plan, which encourages reinvesting in aging facilities to improve their usefulness and appearance and July 23, 2012 Page 15 of 16 (ID # 2966) avoiding deferred maintenance of City infrastructure; and maintaining and enhancing existing park facilities. This Project also supports Policy N-10, which calls for the City to work with the Santa Clara Valley Water District and other relevant regional agencies to enhance riparian corridors and provide adequate flood control by use of low impact restoration strategies. The Baylands Master Plan provides policy direction on the Golf Course. In 2008 the Baylands Master Plan was reformatted representing the 4th addition of the plan. The policy direction adopted in 2008 as seen in Chapter 8 of the plan is to continue the Golf Course in its present use and to continue with the implementation of the Palo Alto Municipal Golf Course Master Improvement Plan. The Baylands Master Plan also provides policy direction on the Baylands Athletic Center – Chapter 7. As with the Golf Course the policy direction is to continue to maintain the athletic center for its current use and to maintain and continue to improve standards of low external glare night lighting. Environmental Review This Project will be subject to environmental review under provisions of the California Environmental Quality Act (CEQA). The SFCJPA will follow the CEQA Guidelines and prepare an Environmental Impact Report (EIR) for the San Francisquito Creek Flood Protection and Ecosystem Restoration capital project and the City of Palo Alto will also follow CEQA Guidelines for the Golf Course reconfiguration capital project. A wetlands delineation study was performed for the Project. The delineation was conducted to assist the SFCJPA in determining the type and extent of wetlands in the delineation study area that may be subject to regulation by the U.S. Army Corps of Engineers under Section 404 of the Clean Water Act and Section 10 of the Rivers and Harbors Act. A separate environmental document may be needed if and when recommended elements of Richardson’s Golf Course Long Range Plan are implemented. A tree survey and arborist’s report for the project area will commence once staff has direction on the preferred reconfiguration option. A meeting with the City Arborist has taken place in the fall of 2011 in anticipation of the impacts to existing trees. It has been clearly communicated to the Golf Corse Architect Richardson that the project must comply with the City’s Tree Ordinance. Attachments:  Attachment A -Forrest Richardson Designs and Cost 7-11-12 (PDF)  Attachment B - 3-6-12 Staff Report 2588 (PDF)  Attachment C - NGF Report 7-11-12 (PDF)  Attachment D - Parks and Recreation Commission - Golf Course (PDF)  Attachment E - Curent Configuration Golf Course w-unofficial_wetland_delineation (PDF)  Attachment F - CMR 446-08 (PDF)  Attachment G - CMR 168-06 (PDF)  Attachment H - ERA Exec Summary (PDF) July 23, 2012 Page 16 of 16 (ID # 2966)  Attachment I- Response Council Questions (DOC)  Attachment J - Richardson Plan G Scope-7-6-12 REV (DOCX)  Attachment K - Summary of Changes - National Golf Foundation Report (DOCX)  Attachment L - Golf Advisory Committee (PDF) Prepared By: Robert De Geus, Manager Department Head: Greg Betts, Director, Community Services City Manager Approval: ____________________________________ James Keene, City Manager ATTACHMENT APALO ALTO GOLF COURSE RECONFIGURATION OPTIONS FORREST RICHARDSON GOLF COURSE ARCHITECT www.golfgroupltd.com Drawn January 2012 (Rev. 2-2012) North 0 100 200 300 400 feet EXIST. PRACTICERANGE 11 PLAYGROUND TRAILCONNECTION GOLFCLUBHOUSE& BANQUETCENTER BAYLANDSATLHLETICCENTER 1 TRAILCONNECTION SAN FRANCISQUITOCREEK NATURALIZEDAREA PICNICRAMADAS SHORTGAMEAREA 9 18 10 EXIST. PRACTICERANGE 11 PLAYGROUND TRAILCONNECTION GOLFCLUBHOUSE& BANQUETCENTER BAYLANDSATLHLETICCENTER 1 TRAILCONNECTION SAN FRANCISQUITOCREEK NATURALIZEDAREA PICNICRAMADAS SHORTGAMEAREA 9 18 10 PALO ALTO GOLF COURSE Schematic Site Plan for Plan “G” Athletic Fields SPORTSSHOPSPORTSSHOP WETLANDSCENTERWETLANDSCENTER PRELIMINARY PROBABLE COST ESTIMATE PALO ALTO GOLF COURSE RECONFIGURATION - OPTIONS A, D, F, & G Note Quantity Units Unit Cost Total Quantity Units Unit Cost Total Quantity Units Unit Cost Total Quantity Units Unit Cost Total NotesMobilization/Bond 1 LS 50000 50,000 1 LS 60000 60,000 1 LS 72000 72,000 1 LS 88000 88,000Staking/Layout 6.5 Holes 2500 16,250 8.5 Holes 2500 21,250 12.5 Holes 2500 31,250 15 Holes 2500 37,500Demo Cart Paths 13960 LF 2 27,920 17760 LF 2 35,520 21000 LF 2 42,000 24000 LF 2 48,000 Bury exist paths rubble onsiteDemo Existing Features 1 LS 15000 15,000 1 LS 18000 18,000 1 LS 26000 26,000 1 LS 30000 30,000 Includes all course bunkersTree Removal 450 Ea 200 90,000 400 Ea 200 80,000 525 Ea 200 105,000 525 Ea 200 105,000Strip Fairway Sod & Bury or Till 33 AC 1500 49,500 37 AC 1500 55,500 45 AC 1500 67,500 50 AC 1500 75,000Baylands Areas/Pond Earthwork 1 60984 CY 1.8 109,771 53240 CY 1.8 95,832 55000 CY 1.8 99,000 65000 CY 1.8 117,000 Baylands cut of 3' avg, short push, haulFairway Topsoil Management 35458 CY 3 106,374 39756 CY 3 119,267 48352 CY 3 145,055 53724 CY 3 161,172 8" strip and replaceRough Shaping 6.5 Holes 6500 42,250 8.5 Holes 6500 55,250 12.5 Holes 6000 75,000 15 Holes 6000 90,000Bunker Shaping - New 22 Each 1200 26,400 21 Each 1200 25,200 30 Each 1200 36,000 40 Each 1200 48,000Bunker Shaping - Existing renovated 1 38 Each 1400 53,200 28 Each 1400 39,200 23 Each 1400 32,200 12 Each 1400 16,800New Subsurface Drainage Piping 7500 LF 6 45,000 9000 LF 6 54,000 13000 LF 6 78,000 16000 LF 6 96,000 Includes tie-ins to existing DI'sModify Existing Storm Drain Inlets 15 Ea 2500 37,500 8 Ea 2500 20,000 15 Ea 2500 37,500 15 Ea 2500 37,500Greens Construction USGA Method 35000 SF 5.75 201,250 5 Each 56000 SF 5.75 322,000 8 Each 84000 SF 5.75 483,000 12 Each 105000 SF 5.75 603,750 15 EachTee Construction 41500 SF 2.25 93,375 60000 SF 2.25 135,000 90000 SF 2.25 202,500 120000 SF 2.25 270,000 4" sand atop subgradeBunker Construction New 14800 SF 4 59,200 14800 SF 4 59,200 42000 SF 4 168,000 56000 SF 4 224,000 w/bunker liner, sand cost at $70/tnBunker Construction Renovated 1 26750 SF 4 107,000 18300 SF 4 73,200 16100 SF 4 64,400 8400 SF 4 33,600 w/bunker liner, sand cost at $70/tnIrrigation - In play areas 35 AC 17500 612,500 40 AC 17500 700,000 58 AC 17500 1,015,000 82.9 AC 17500 1,449,999 Impact areas onlyIrrigation - Native areas 1 26 AC 5000 130,000 32 AC 5000 160,000 32 AC 5000 160,000 30 AC 5000 150,000Cart Paths 95820 SF 2.8 268,296 129840 SF 2.8 363,552 133800 SF 2.8 374,640 157200 SF 2.8 440,160Cart Path Curbing (est.)2500 LF 6 15,000 3400 LF 6 20,400 3500 LF 6 21,000 4100 LF 6 24,600Finish Shaping 6.5 Holes 4500 29,250 8.5 Holes 4500 38,250 12.5 Holes 4500 56,250 15 Holes 4500 67,500Fine Grade/Soil Prep in play areas 33 AC 2000 66,000 37 AC 2000 74,000 45 AC 2000 90,000 50 AC 2000 100,000Fine Grade/Soil Prep Native areas 26 AC 500 13,000 32 AC 500 16,000 32 AC 500 16,000 30 AC 500 15,000Native Area Hydro Seeding 1 26 AC 2613.6 67,954 32 AC 2613.6 83,635 32 AC 2613.6 83,635 30 AC 2613.6 78,408Baylands Area Hydro Seeding 1 12.6 AC 2178 27,443 11.0 AC 2178 23,958 11.4 AC 2178 24,750 13.0 AC 2178 28,314Hybrid Bermuda or Paspalum Sod 31.0 AC 21780 676,115 35.0 AC 21780 761,730 49.0 AC 21780 1,067,220 53.0 AC 21780 1,154,340 Fairways, Roughs & TeesBentgrass Sod (greens)35000 SF 1.5 52,500 56000 SF 1.5 84,000 84000 SF 1.5 126,000 105000 SF 1.5 157,500Bridge1 Ls 30000 30,000 1 Ls 30000 30,000 2 ea 30000 60,000 2 ea 30000 60,000New Trees 250 Ea 250 62,500 200 Ea 250 50,000 300 Ea 250 75,000 300 Ea 250 75,000Misc Items 1 LS 30000 30,000 1 LS 32000 32,000 1 LS 35000 35,000 1 LS 38000 38,000Driving Range Netting Alterations 0 0 0 240 LF 150 36,000Athletic Field Area Rough Grade 0 0 26000 CY 3 78,000 35000 CY 3 105,000Athletic Field Area Shape, Temp Planting 0 0 4.1 AC 4400 18,182 10.5 AC 4400 46,200Short Game Learning Area 2 0 0 1 LS 165000 165,000 1 LS 165000 165,000Additional GC Arch Fees 4 0 1.5 Holes 8000 12000 5.5 Holes 8000 44000 9 Holes 8000 72000Additional Environmental Consulting 3 0 1 LS 20000 20000 1 LS 40000 40000 1 LS 40000 40000Subtotal3,210,547 3,737,944 5,314,082 6,384,343Project Management Costs 2.5%80,264 2.5%93,449 2.5%132,852 2.5%159,609Contingency 7.5%7.50%246,811 7.50%287,354 7.50%408,520 7.50%490,796TOTAL3,537,622 4,118,748 5,855,454 7,034,748 Alternate ItemsSand Plate Modified Fairways 6"16.5 Acres 35000 577,500 18.5 Acres 35000 647,500 30 Acres 35000 1,050,000 40 Acres 35000 1,400,000Place Stanford stockpiled earth 100000 CY 3.25 325,000 100000 CY 3.25 325,000 100000 CY 3.25 325,000 100000 CY 3.25 325,000Rebuild Additional Greens (on course)91000 SF 6.25 568,750 70000 sf 6.25 437,500 42000 sf 6.25 262,500 21000 sf 6.25 131,250Future Short Game Area NA 1 ls 80000 80,000 NA NADemo/Replace Restroom 1 LS 95000 95,000 1 LS 95000 95,000 1 LS 95000 95,000 1 LS 95000 95,000Add cost to Re-Sod all Fairways with Paspalum 23.5 AC 27500 646,250 21.5 AC 27500 591,250 7 AC 27500 192,500 3 AC 27500 82,500Add cost to replace, update balance of Irrig. system 1 LS 857,500 857,500 1 LS 740,000 740,000 1 LS 425,000 425,000 1 LS NARebuild Exist Putting Green Area per Long Range Plan 1 LS 180,000 180,000 1 LS 180,000 180,000 1 LS 180,000 180,000 1 LS 180,000 180,000Total for all Alternate Items 3,250,000 3,096,250 2,530,000 2,213,750Notes: 1 Work Extends throughout golf site. 2 New area applies to Options D, F and G only; Option D shown as "Alternate Item" for future development. 3 Additional estimate to golf course area(s) covered by SFCJPA reconfiguration scope. 4 Short game area included for Option GThis estimate of probable construction costs is based on the current schematic designs developed which are not engineered or designed construction drawings. Costs to relocate or replace any existing public utilities or accommodate unknown permitting issues are not included. Golf course designfees over and above those to be covered by SFCJPA are shown for Options D, F and G. Alternate Items are estimated based on concurrent construction with base work scope. Other professional fees to be separately covered by SFCJPA and are not included in the cost estimate. OPTION GOPTION FOPTION A OPTION D Revised 2/14/2012 2:16 PM dls OPTION G ESTIMATEWITH OPTIONAL WORKPER FINANCE COMMITTEEBase Improvements 6,384,343Rebuild All Greens (+3)131,250Replace Restroom 95,000Replace All Fairway Turf 82,500Rebuild Putt. Grn. Area 180,000Sub-Total (Improvements)6,873,093Project Mgmnt. (2.5%)171,802Project Sub-Total 7,044,895Contingency (7.5%)528,367Project Total 7,573,262 Above Section Added: Rev. 3-19-12 Financial Pro Formas and Supporting Analysis for Reconfiguration Options A, D, F, G For Palo Alto Municipal Golf Course Prepared For: City of Palo Alto Rob de Geus, Division Manager Recreation & Golf Services 1305 Middlefield Road Palo Alto, CA 94301 Prepared By: 1150 South U.S. Highway One, Suite 401 Jupiter, FL 33477 (561) 744-6006 April, 2012 Financial Pro Formas and Supporting Analysis for Reconfiguration Options A, D, F, G Palo Alto Municipal Golf Course Table of Contents INTRODUCTION ....................................................................................................................... 1 PALO ALTO MUNICIPAL GOLF COURSE RECONFIGURATION OPTIONS.......................... 2 Goals and Objectives.......................................................................................................... 2 Option A.............................................................................................................................. 3 Additional Work .............................................................................................................................4 Option D.............................................................................................................................. 4 Additional Work .............................................................................................................................5 Option F.............................................................................................................................. 5 Additional Work .............................................................................................................................6 Option G ............................................................................................................................. 7 Additional Work .............................................................................................................................8 Deferment of Certain Improvements ................................................................................... 9 MARKET OVERVIEW ..............................................................................................................10 Demographics Summary....................................................................................................10 Golf Market Overview.........................................................................................................11 National Trends in Golf Demand and Supply..............................................................................11 Local and Regional Golf Supply and Demand Indicators............................................................13 Competitive Golf Market.....................................................................................................15 Summary Information – Primary Competitors.............................................................................16 Summary of Findings – Primary Competitors .............................................................................18 Palo Alto Golf Course Market Positioning Assessment ......................................................19 FINANCIAL PERFORMANCE MODELS FOR PALO ALTO GOLF COURSE.........................20 Recent Historical Palo Alto GC Performance .....................................................................20 Projections Based on “Option A”........................................................................................22 Key Assumptions.........................................................................................................................22 Pro Forma Estimate for ‘Option A’ Scenario – FY2012 – FY2021..............................................26 Projections Based on “Option D”........................................................................................29 Key Assumptions.........................................................................................................................29 Pro Forma Estimate for ‘Option D’ Scenario – FY2012 – FY2021..............................................32 Projections Based on “Option F” ........................................................................................35 Key Assumptions.........................................................................................................................35 Pro Forma Estimate for ‘Option F’ Scenario – FY2012 – FY2021..............................................36 Projections Based on “Option G”........................................................................................39 Key Assumptions.........................................................................................................................39 Pro Forma Estimate for ‘Option G’ Scenario – FY2012 – FY2021 .............................................42 Financial Projections Summary..........................................................................................45 Summary of Options....................................................................................................................45 Summary Results........................................................................................................................46 Justifications for Revenue Projections ........................................................................................47 Other Considerations Regarding Improvement Options.............................................................48 Option “G” Sensitivity Analysis...........................................................................................49 Option “G” Sensitivity Analysis - Summary for 2017...................................................................49 Option G Sensitivity Spreadsheets..............................................................................................50 OTHER ISSUES AND CONSIDERATIONS..............................................................................56 Market Position / Re-Branding Opportunity........................................................................56 Economics of Potential Long-Term / Additional Improvements...........................................58 Cart Storage Building ..................................................................................................................58 Expanded Meeting Space ...........................................................................................................59 Range Performance Center ........................................................................................................59 Management Structure.......................................................................................................60 Long Range Concerns.......................................................................................................61 Potential Economic Development Of The Airport & Golf “Baylands Gateway” Area............64 Private Funding Possibilities ..............................................................................................65 APPENDICES...........................................................................................................................66 Appendix A – Comparative Supply Ratios – Palo Alto GC & Key Municipal Competitors...67 Appendix B – Comparative Scoring of Reconfiguration Options.........................................68 Appendix C – Water & Power Use Discussion & Assumptions...........................................71 Appendix D – Review Of Probable Cost Estimates ............................................................73 Appendix E – Potential Long-Term Master Plan Improvements..........................................75 National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 1 Introduction National Golf Foundation Consulting, Inc. was retained by the City of Palo Alto in furtherance of the City’s due diligence relative to the San Francisquito Creek Flood Control Project, which will involve the reconfiguration of six or more holes at the Palo Alto Golf Course. NGF’s objective was to help the City identify the expected financial impact from the improvements related to the reconfiguration work under Plan Options A, D, F, and G. Specifically, NGF has crafted 10-year cash flow pro formas that project the estimated net financial impact of the proposed improvements, allowing the City to evaluate each of the four reconfiguration options under consideration from an objective standpoint. Our analysis includes expected impact on rounds played, fee structure, revenue generation, operating expenses, and capital spending/debt. The pro formas also provide an estimate for lost revenues during the time that the course is impacted and/or closed. Other aspects of the NGF review include: A market overview of the Palo Alto area, with an emphasis on area demographics and key golf demand and supply indicators. A competitive review, including a qualitative assessment of the impact that the potential reconfigurations would have on Palo Alto Golf Course’s market/competitive position. A review of Forrest Richardson’s work regarding the potential implications from the renovation options on facility branding and marketing. NGF will also offer its opinion about the long-term implications and potential financial impact of improvements associated with the longer range master plan, including clubhouse expansion, cart storage, event areas, range performance center, range enlargement, entry/parking, and the youth training area. NGF will evaluate relevant options available to the City of Palo Alto for the continued operation of Palo Alto Golf Course, including (but not limited to) continuing on an as- is basis or outsourcing all management and maintenance to a full-service management company. Viable options will be identified, and a discussion of the costs, benefits, and financial implications of each operating scenario presented. The study effort was managed by NGF Director of Consulting Services Richard B. Singer and Senior Project Director Ed Getherall. Activities conducted in completion of this report included: field research; statistical and financial analysis; meetings with key City staff from the Recreation & Golf Services, Administration, Community Services, and Finance Departments; meetings with the Head Golf Professional, Golf Course Superintendent, and ValleyCrest Area Director; a tour of the golf course; and, interviews with area golfers. Following is the consultants’ report summarizing key findings and recommendations. Throughout this report, we may refer to shortened names for: the City of Palo Alto (“City”), the Palo Alto Municipal Golf Course (“Palo Alto Golf Course”, “Palo Alto GC” or “PAGC”), and National Golf Foundation Consulting, Inc. (“NGF Consulting” or “NGF”). National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 2 Palo Alto Municipal Golf Course Reconfiguration Options NGF Consulting was provided four course reconfiguration options prepared by Forrest Richardson, ASGCA. These options were identified by the titles “Option A,” Option D,” “Option F” and “Option G,” and each have unique characteristics. The options represent four possible scenarios for adjusting the course to accommodate the SFCJPA flood mitigation project. Options A, D, F and G were culled from seven proposed alternatives (Options B, C, and E were eliminated prior to our review) as the most viable and potentially opportune for the City. The process for developing options has been thorough, with extensive input from golfers, staff, concessionaires and the public at large. NGF Consulting has reviewed notes and summaries from these meetings to better understand the goals and objectives desired by those who will use and operate the facility following reconfiguration. GOALS AND OBJECTIVES Among the goals and objectives set forth to guide the design process for reconfiguration options, in addition to the fundamental goal to accommodate the flood project, included: Establish a more natural, aesthetic landscape that incorporates a “Baylands” theme Improve tree care and variety via a theme to use appropriate tree selection Find ways to eliminate geese and burrowing animals from ruining the course Improve bunkers (condition, strategy and aesthetics) Improve overall course conditioning (drainage, irrigation, turf, etc.) Adjust yardage so the course is shorter for beginners, women and seniors Create a “wow factor” to remain competitive with other regional facilities Add interest to the course strategy (dog-legs, differentiation of holes, etc.) Find ways to offer player development opportunities (short game area, range, etc.) Additionally, there was a strong desire to address long range issues that face the aging facility beyond those on the golf course itself. The City commissioned its own scope of work to address these issues concurrently with the course reconfiguration planning. These long range areas included the following: Clubhouse planning Entry, parking and signage Practice areas Cart storage and staging On-course restrooms Branding and image Trail connections from the Baylands and existing trails National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 3 The objective of the additional long-range planning was to look beyond the golf course to ensure that reconfiguration options would not preclude improvements to the areas on the above list. Specific goals and objectives included the following: Find ways to bring non-golfers to the facilities (group events, restaurant, etc.) Expand the clubhouse to seat 200 so larger groups can be accommodated Develop areas to hold multiple outings/events simultaneously Improve the arrival experience, entry aesthetics, trail connections and security Develop a cart storage area/facility Make overall improvements to the clubhouse and grounds (exterior and interior) Improve and expand the practice range Create new player development and practice opportunities Plan for upgrading the on-course restroom facility Develop a new brand and image consistent with the reconfiguration goals and design A common thread among the long range planning components was a strong design to return the facilities, with golf course approaching its 60th year and the clubhouse its 30th, to a “Point of Pride” status within the community. Along with this primary objective come the benefits of leveraging the facility for economic development, tourism and as a home to annual and special events. Secondarily, the community has a strong desire to see the golf course be more compatible with the Baylands environment. This goal is echoed by Mr. Richardson in his reconfiguration options, each of which adds more naturalized areas to the golf course. In addition, long range design concepts associated with the clubhouse, entry and image go hand- in-hand with this goal. OPTION A Option A represents the minimum reconfiguration in order to facilitate the San Francisquito Creek realignment as required by the SFCJPA. This option shifts holes laterally from west to east, retaining much of the same routing of the existing course. Golf holes are moved away from the levee on a minimal basis. Improvements are primarily restricted to the holes moved, with the remaining holes largely unchanged. Bunker work and naturalization enhancements are made throughout the course in order to provide a more consistent golf experience and landscape. The highlights of changes in this option include: 6.5 golf holes relocated 5 new greens constructed Par 72 6,900 / 6,500 / 5,200 yards All bunkers reconstructed and/or new 38.5 acres transformed to naturalized areas (non-managed turf) Revised Hole No. 18 (naturalized hazard) Adjusted Hole No. 12 Adjusted Hole Nos. 13 and 14 National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 4 The total projected cost for this option is $3,537,622, including all professional fees, project management and contingency. Additional Work Additional (“alternate”) items within the golf course itself may be undertaken by the City concurrently with the development of Option A. These optional items include: Sand capping of new turf areas (new fairways to be constructed) Use (spreading) of imported soil from the Stanford University Medical Center Project Reconstruction of all greens (13 additional to those covered) Re-turfing of all existing fairways (23.5 acres additional) Replacement of the balance of the existing irrigation system Reconstruction and features at the existing practice green area Construction of a new on-course restroom facility Projected Cost for Additional Items: $ 3,250,500 Among the additional (alternate) work, Mr. Richardson and NGF recognize that the full replacement of the existing irrigation system will become an eventual necessity. Our understanding is that the existing system, installed in 1998, presents regular issues due to deteriorating pipe fittings. Now entering its 14th year of service, the system is on the decline due to the high salts inherent within the soils. Even if the balance of the system remains in commission for another six years (20 years is a reasonable longevity for irrigation systems) there exists good probability that emergency repairs and costs may escalate. For this reason, we have studied this additional cost ($857,500) as an alternative scope to be considered for Option A. OPTION D Option D represents an enhanced reconfiguration version from Option A. This option facilitates the San Francisquito Creek realignment as required by the SFCJPA. The primary difference from Option A is that Option D realigns holes with more variety, departing from the common parallel routing of the existing course. Golf holes are moved away from the levee, but go beyond Option A to form new views and variation. Bunker work and naturalization enhancements are made throughout the course in order to provide a more consistent golf experience and landscape. These are more prevalent than that afforded through Option A. The highlights of changes in this option include: 8.5 golf holes relocated 8 new greens constructed Par 72 6,900 / 6,400 / 5,000 yards All bunkers reconstructed and/or new 43 acres transformed to naturalized areas (non-managed turf) New Island Green Hole No. 13 (elevated tee and Bay view) New Double Green Nos. 3 and 15 New Hole No. 5 (elevated green and Bay View) New Hole No. 7 (split fairway) National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 5 New Hole No. 18 (par-5 and naturalized hazard) New Hole No. 4 New Hole No. 17 New Hole No. 16 Future space afforded for a new practice green/short game area The total projected cost for this option is $4,118,748, including all professional fees, project management and contingency. Additional Work Additional (“alternate”) items within the golf course itself may be undertaken by the City concurrently with the development of Option D. These optional items include: Sand capping of new turf areas (new fairways to be constructed) Use (spreading) of imported soil from the Stanford University Medical Center Project Reconstruction of all greens (10 additional to those covered) Re-turfing of all existing fairways (21.5 acres additional) Replacement of the balance of the existing irrigation system Reconstruction and features at the existing practice green area Construction of a new on-course restroom facility Future development of a new practice green/short game area Projected Cost for Additional Items: $ 3,096,250 As with Option A, we recognize that the full replacement of the existing irrigation system will become an eventual necessity. The same comments apply to Option D as noted for Option A. We have studied the additional cost ($740,000), which is lower for Option D as more of the existing system is covered within areas impacted by the reconfiguration, as an alternative scope to be considered for Option D. OPTION F Option F represents an opportunity to remove land from golf course use and transform it to use for athletic field(s). This option was added to the reconfiguration scope of the golf course architect based on previous studies with the same objective. For Option F, a general constraint placed on the planning work was to retain yardage (6,800 yards) and a par of 72. Safety from the new trail system and within adjoining holes was to be maintained with no compromise to standard guidelines. Option F facilitates the San Francisquito Creek realignment as required by the SFCJPA. The option is primarily distinguished by the removal of approximately 2.5 acres from the golf course parcel. This land area is shown as athletic field use, accommodating a full NCAA sized soccer field or combination of fields and field types of the same proportion and area. This area would have limited room for parking expansion. Option F realigns holes with more variety than in Option A. As with Option D, the reconfiguration departs from the common parallel routing of the existing course. Golf holes are moved away from the levee to form new views and variation. Bunker work and naturalization enhancements are made throughout the course in order to provide a more consistent golf experience and National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 6 landscape. As a result of the “domino effect” of moving holes to make room for the athletic field area, these enhancements are as prevalent as that afforded through Option D. The highlights of changes in this option include: 12.5 golf holes relocated 12 new greens constructed Par 72 6,700 / 6,300 / 5,000 yards All bunkers reconstructed and/or new 43.4 acres transformed to naturalized areas (non-managed turf) New Island Green Hole No. 13 (elevated tee and Bay view) New Double Green Nos. 3 and 15 New Hole No. 5 (elevated green and Bay View) New Hole No. 7 (split fairway) Revised Hole No. 18 (naturalized hazard) New Hole No. 4 New Hole No. 17 New Hole No. 16 New Hole No. 3 New Hole No. 3 New Hole No. 15 New practice green/short game area developed along with reconfiguration Temporary preparation of the athletic field area (not field development or improvement) The total projected cost for this option is $5,855,454, including all professional fees, project management and contingency. Additional Work Additional (“alternate”) items within the golf course itself may be undertaken by the City concurrently with the development of Option F. These optional items include: Sand capping of new turf areas (new fairways to be constructed) Use (spreading) of imported soil from the Stanford University Medical Center Project Reconstruction of all greens (6 additional to those covered) Re-turfing of all existing fairways (21.5 acres additional) Replacement of the balance of the existing irrigation system Reconstruction and features at the existing practice green area Construction of a new on-course restroom facility Projected Cost for Additional Items: $ 2,530,000 As with Options A and D, we recognize that the full replacement of the existing irrigation system will become an eventual necessity. The same comments apply to Option F as noted for previous National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 7 options. We have studied the additional cost ($425,000), which is lower for Option F (than for A or D) as more of the existing system is covered within areas impacted by the reconfiguration, as an alternative scope to be considered for Option F. OPTION G Option G represents a plan to remove more land from golf course use, transforming this land to use for multiple athletic field and non-golf recreation purposes. This option was added to the reconfiguration scope of the golf course architect based on the direction of the City to investigate whether the viability of the golf course could be preserved while opening more area (than with Option F) for non-golf recreation. The constraint placed on the planning work was to retain a regulation layout with a par of 70 or 71. Safety from the new trail system and within adjoining holes was to be maintained with no compromise to standard guidelines. NGF Consulting was in the very early stages of our consulting work for the City when Option G was put into motion. Among the foremost questions we were asked was whether a significantly shorter course and/or a significantly lower par would be advisable for the City of Palo Alto. Our conclusion was that the Palo Alto market, especially in the City’s situation as a single-course owner, is best served in this locale by a regulation 18-hole golf course with a par of 72 being preferred. This conclusion is based on several factors, including the following: A strong history of this golf course producing annual rounds in excess of 80,000 Stated preferences by the current customer base to maintain length and par Viability to host group golf events “demanding” a full-length course experience Competitiveness to area courses Long term viability to host regional events (qualifying, larger tournaments, etc.) Regional offerings of shorter courses Plan options that accommodate more flexible (shorter) yardages flexibility as part of the reconfiguration work NGF Consulting shared this conclusion with the City and the golf course architect, recommending that Option G should, if possible, preserve a regulation length of about 6,500 yards (back tees) and a par of 72 preferred. If pressed to choose between a reduction in par (to 71) or a reduction in yardage lower than 6,500, we opined that it would be better to preserve yardage at 6,500 and allow par to drop to 71. (Note: A par 71 course measuring 6,500 yards is perceived as more difficult, and can be marketed such, than a course measuring the same yardage but holding a par of 72. This is because the ratio of par to yardage is more challenging.) Option G also facilitates the San Francisquito Creek realignment as required by the SFCJPA. The option involves the removal of approximately 10.5 acres from the golf course parcel. This land area is shown as athletic field use (three full sized NCAA soccer fields or combination of fields and field types of the same proportion and area), and additionally shows areas for a small playground, wetlands park and picnic space, and trails connecting to the San Francisquito Creek levee trails, Baylands and neighborhood. Option G realigns holes with more variety than in Option A. As with Option D and F, the reconfiguration departs from the common parallel routing of the existing course. Golf holes are moved away from the levee to form new views and variation. Bunker work and naturalization National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 8 enhancements are made throughout the course in order to provide a more consistent golf experience and landscape. As with Option F, but to an even greater extent, virtually all areas of the existing course would be reconstructed, enhanced and improved. The highlights of changes in this option include: 18 golf holes relocated 18 new greens constructed Par 71 6,600 / 6,100 / 5,000 yards All bunkers reconstructed and/or new 43 acres transformed to naturalized areas (non-managed turf) Irrigated Turf Reduced from 135 acres to 92 acres New Island Green Hole No. 12 (elevated tee and Bay view) New Double Green Nos. 3 and 15 New Hole No. 5 (elevated green and Bay View) New Hole No. 7 (split fairway) New Hole No. 18 (par-5, naturalized hazard) New Hole No. 4 New Hole No. 14 New Hole No. 10 New Hole No. 17 New Hole No. 16 New Hole No. 3 New Hole No. 3 New Hole No. 15 New practice green/short game area developed along with reconfiguration Full irrigation system replacement (all areas of the 18-hole golf course) Reconstruction and features at the existing practice green area Construction of a new on-course restroom facility Temporary preparation of the field/recreation area (not field development or improvement) The total projected cost for this option is $7,573,262, including all professional fees, project management and contingency. Additional Work Additional (“alternate”) items within the golf course itself may be undertaken by the City concurrently with the development of Option G. These optional items include: Sand capping of new turf areas (new fairways to be constructed) Use (spreading) of imported soil from the Stanford University Medical Center Project Reconstruction of all greens (3 additional to those covered) Re-turfing of all existing fairways (21.5 acres additional) Replacement of the balance of the existing irrigation system National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 9 Projected Cost for Additional Items: $ 1,675,236 Unlike other options, Option G includes full irrigation replacement. This is because there is no viable method of leaving only three golf holes without replacement. Variables include pumping pressure, control zones and other logistics that had to be considered. DEFERMENT OF CERTAIN IMPROVEMENTS Other additional work listed under each option above has not been incorporated to the pro formas prepared by NGF Consulting due to the complexity of attaching incremental rounds, revenues and expenses to these improvements. However, both NGF and Mr. Richardson believe that deferring some or all of the alternative (optional) improvements, including long- range work to the clubhouse building, grounds, entry, practice areas, etc., will likely have a negative affect on revenues and constrain somewhat the City’s ability to “re-brand” Palo Alto GC. Over the years, NGF Consulting has witnessed the implications of rounds and revenues on golf facilities that have deferred maintenance and/or capital improvements. Eventually, golf course conditions and/or the overall golf experience fall to a level where rounds, pricing and, as a result, revenues are constrained, as is the municipality’s ability to effectively market the golf course as anything other than a “value” provider. Golf consumers begin to migrate away from facilities that are not well maintained when there are other proximate facilities offering better conditions and/or equal or even slightly higher price points. Among the optional/alternative improvements associated with Palo Alto Golf Course, we find the most pressing are: Course conditions, especially greens, drainage and turf condition Yardage flexibility (to attract beginners, youth, women and seniors) Geese and burrowing animal intrusion and damage On-course restroom replacement Clubhouse condition and available space Most of the above are well corrected or mitigated though the reconfiguration options. However, replacement of the irrigation system, as an example, is not fully afforded within the base work of Options A, D and F. Especially in the case of A and D, this alternate cost may be prudent to examine closer as conditions cannot dramatically improve course-wide without a plan to replace the system. If the system is allowed to run for a long period without replacement, revenue is bound to drop incrementally as turf conditions decline. In terms of substantive clubhouse improvements, such as expanding the meeting space, improvements are not likely to pay for themselves under the current operating structure whereby only 7% of food & beverage revenue accrues to the City. Yardage flexibility is accommodated in most of the options, but more so as more work is covered. Options D, F and G adequately allow for more flexibility and will therefore have the potential to attract more player types. The geese and burrowing animal issues, according to the golf course architect, will be positively mitigated by all reconfiguration options. Yet, plan options with more area impacted will likely result in more appropriate habitat and areas for these animals to use rather than the turf areas currently intended for golfers. National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 10 Market Overview Below, NGF Consulting provides a summary of key “external” factors that characterize the trade area in which the Palo Alto Golf Course operates. We include basic demographic variables that have the potential to affect the economic performance of the golf facility, as well as an analysis of supply and demand indicators in the public golf market. DEMOGRAPHICS SUMMARY Utilizing research materials provided by Applied Geographic Solutions, Inc. (a supplier of demographic research based on U.S. Census results), NGF Consulting has examined relevant characteristics of the local population. In the following tables, NGF Consulting indicates the population, median age, and median household income trends for San Mateo and Santa Clara counties, as well as the 3-, 10-, and 15- mile market rings surrounding the golf course and the total United States. Palo Alto Golf Course 3 mi 10 mi 15 mi San Mateo County Santa Clara County U.S. Summary Demographics Population 1990 Census 94,021 697,234 1,482,687 649,622 1,496,702 248,710,012 Population 2000 Census 100,652 765,828 1,662,257 707,161 1,682,585 281,421,906 CAGR 1990-2000 0.68%0.94% 1.15%0.85% 1.18%1.24% Population 2010 Census 104,099 806,139 1,750,080 718,376 1,781,728 308,699,447 CAGR 2000-2010 0.34%0.51% 0.52%0.16% 0.57%0.93% Population 2016 Projected 105,110 817,407 1,775,178 725,980 1,805,397 325,288,086 CAGR 2010-2016 0.16%0.23% 0.24%0.18% 0.22%0.88% Median HH Inc $94,304 $96,743 $91,334 $88,233 $88,860 $53,908 Median Age 37.5 37.2 37.1 39.4 36.2 36.9 CAGR = Compound Annual Growth Rate From the data collected for this study, NGF Consulting has made the following observations regarding the demographics of Palo Alto and surrounding areas: The 10-mile and 15-mile markets around Palo Alto GC are dense, with 2010 estimates of about 806,000 and 1.775 million residents, respectively, in these two submarkets. The 10-mile market has added more than 40,000 net new residents since 2006, while the 15-mile market grew by nearly 88,000 people. Population growth is projected to be very moderate through 2016. The Median Ages in the subject market areas are generally similar to the national median age of 36.9 years, though San Mateo County overall is significantly higher at 39.4 years. In general, the propensity to play golf with greater frequency increases with age, making relatively older markets more attractive to golf facility operators, all other factors being equal. Median Household Incomes in the area are much higher than the national median. For instance, the 10-mile market exhibits incomes nearly 80% higher than the national median income of $53,908. In general, higher income residents are more likely to participate in golf, and they play more frequently than lower income National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 11 residents. These high figures are mitigated considerably by the very high cost of living in the Bay Area. GOLF MARKET OVERVIEW Below we provide an overview of recent and emerging national trends with respect to golf participation and municipal golf, as well as a summary of golf demand and supply indicators in the local markets for Palo Alto Golf Course. NGF Consulting utilizes predictive models as benchmarks for estimating potential market strength. The methodology for determining the relative strength of the subject market is described in the following section. National Trends in Golf Demand and Supply Participation Golf participation in the U.S. has grown from 3.5% of the population in the early 1960s to about 9.2% of the population today. NGF estimates that the number of golfers fell slightly in 2011 to 26.1 million; it was encouraging news that the number of golfers gained in 2010-11 held steady vs. previous years while the number of lost golfers dropped significantly. For research purposes, a golfer is defined as a person age 6 or above who plays at least one round of golf in a given year. All U.S. Golfers (in millions) 1985 1990 1995 2000 2005 2010 All golfers age 6+ 19.5 27.4 24.7 28.8 30.0 26.1 Source: National Golf Foundation The number of rounds of golf also fell 2.3% during the past year, from 486 million in 2009 to 475 million in 2010 (most recent year NGF has published), corroborating the decline in the number of golfers. In the Pacific Region, which includes California, the statistics are somewhat more favorable: Regional Profile Participation Rate Number of Golfers Percent of Golfers Total Annual Rounds (millions) Pacific Region 7.3% 3,276,000 12.5% 50.4 United States 9.2% 26,122,000 100.0% 475.0 Source:Golf Participation in the U.S., 2011 edition, National Golf Foundation Considering the severity of the recession and its effects on both discretionary income and time, golf has held up rather well. Multiple NGF studies of golfers since 2008 would attribute the gradual decline in golfers and rounds primarily to the impact of lower job security and concern over personal finances, not waning appeal for the game. Over the past 50 years, golf demand grew at about 4% per year while facility supply grew at about 2% per year. However, since 1990, the situation has reversed – demand has grown at only 0.5% per year while facility supply has grown at 1.4% per year. With the increase in supply, National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 12 we are seeing a marked increase in competition, and the supply is greater than the demand in some markets. In addition to increased competition, other factors have contributed to a decline in the number of rounds per course nationally from 2002 to 2011. In the NGF’s most recent survey of core golfers conducted in September 2011, we found that fearful financial outlooks, weak consumer confidence, and negative golfer attitudes have also played a role. The combination of these has caused many golf facilities to become distressed, particularly those that have a high debt load because of higher construction costs and the perceived need to build high-end courses. The number of golf course closings quadrupled from an annual average of 24 courses per year in the 1993-2001 time period to more than 100 courses in 2005.In 2006, there was negative net growth in golf facilities for the first time in six decades, with 146 18-hole equivalents closing and 119.5 opening. In 2007, there were 113 openings and 121.5 closures, and in 2008, 72 golf course openings and 106 closures. In 2009, 49.5 openings minus 139.5 closures equated to a net loss of 90 18-hole equivalents. Closures continue to be disproportionately public, stand-alone 9-hole facilities or short courses (executive or par-3 length) with a value price point. Net growth in supply has been negative now for four consecutive years, with the largest drop of 90 courses in 2009. However, U.S. openings averaged 200+ (net) for 20 years, and total 18-hole equivalent supply is up 5% since 2000, indicating a slow market correction is underway. In October 2011, NGF projected 2011 net growth of about negative 106.5 (openings minus closings), and projected actual closures for 2011 would be closer to 150. NGF estimates that national rounds played experienced an overall drop from 2000 to 2010 of -9.5%. By the end of 2011, rounds had further declined 2.5% in the U.S., but rounds in the Pacific Region had increased 1.2% and California was up 2.3%. On the positive side, the growth in golf course development has slowed considerably nationally and in the majority of local markets, a trend that should help ease some of the competitive pressure. Another positive trend is the aging of America. Baby Boomers are rapidly approaching retirement age when golf activity flourishes. The baby boomers represent not only the largest single demographic in the US, but they also approach retirement age with more disposable income than any previous generation. National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 13 Local and Regional Golf Supply and Demand Indicators The following table summarizes some key golf supply and demand measures for the local markets based on NGF research and golf demand predictive models. Palo Alto Golf Course 3 mi 10 mi 15 mi San Mateo County Santa Clara County U.S. Golf Demand Indicators # of Golfing Households 6,989 55,008 116,506 49,136 116,439 21,237,600 Number of Rounds Played 226,453 1,769,537 3,717,852 1,571,308 3,765,371 498,831,616 Golfing Household Index 101 104 103 105 106 100 Rounds Played Index 140 142 141 143 146 100 Golf Supply Summary Total Golf Facilities 2 13 25 14 33 15,902 Public Golf Facilities 2 8 16 6 20 11,633 Private Golf Facilities 0 5 9 8 13 4,269 Total Golf Holes 36 207 378 279 576 268,443 Public Golf Holes 36 117 225 108 342 191,214 Private Golf Holes 0 90 153 171 234 77,229 Household/Golf Supply Indicators Households per 18 Holes: Total 19,132 25,655 29,805 16,754 19,127 7,733 Households per 18 Holes: Public 19,132 45,390 50,073 43,282 32,214 10,856 Households per 18 Holes: Private NA 59,007 73,636 27,336 47,082 26,879 Households Supply Index: Total 242 325 378 212 242 100 Households Supply Index: Public 171 405 447 387 288 100 Households Supply Index: Private 0 221 275 102 176 100 Golf Course Construction Activity 2001-2010 Total holes added past 10 years 0 0 18 0 72 24,318 Public holes added past 10 years 0 0 0 0 54 17,469 Private holes added past 10 years 0 0 18 0 18 6,849 Percent Total Holes Added 0.00%0.00%4.80%0.00%12.50%9.10% Percent Public Holes Added 0.00%0.00%0.00%0.00%15.80%9.10% Percent Private Holes Added NA 0.00%11.80%0.00%7.70%8.90% National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 14 Golf participation rates in the subject markets around Palo Alto GC are very similar to the national benchmark, while rounds demanded per household are about 40% higher than the national figure. The high rounds demanded per household are indicative of the year-round golf climate, the high number of golf courses, and a demographic profile that is generally conducive to high golf demand, particularly as it relates to median household income. There are thirteen total, including eight public, golf facilities (including Palo Alto GC) in the 10-mile market area, while there are 25 total facilities, including 21 public, within 15 miles of Palo Alto GC. As the tables indicates, the subject markets have significantly more households per 18 holes of golf than the nation overall. For example, in the 10-mile market area surrounding Palo Alto GC, there are nearly four times as many households per total 18 holes and 4.5 times as many households per public 18 holes than in the overall U.S. (We contrast these supply ratios to some of Palo Alto’s key competitors in Appendix A). There was a spate of new golf course construction in the Bay Area in the 1990s and early 2000s. For the nine-county Bay Area region, 27 total golf facilities were added between 1997 and 2006. This included 6 private (comprising 90 holes) and 21 public (360 holes) facilities. However, as with the rest of the country, new golf course construction has slowed to a crawl in the subsequent years, and the NGF database reveals no new golf course projects currently in planning or under construction within 15 miles of Palo Alto GC. Palo Alto and the greater Bay Area are home to a large number of major corporate and public employers, including many high-tech and internet companies. These large employers are prime targets for soliciting tournament/outing play, and could be a key element to boosting play levels and revenues at the Baylands GC. Outings are generally sold at the highest green fee, and also expose a number of golfers to the facility for the first time. Visitors to the Palo Alto area have the potential to significantly impact demand at golf courses. Though visitation numbers were not available for Palo Alto specifically, it is estimated that about sixteen million people visit San Francisco alone each year, and the overall Bay Area has considerably more visitors than that. NGF research shows that roughly one-third of all golfers participate in the activity while traveling, playing .557 rounds per day of travel. This supplemental market should be a target of marketing efforts once the improved Baylands Golf Club is opened. National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 15 COMPETITIVE GOLF MARKET One of the objectives of this effort is to identify any opportunities that may exist for the improved “Baylands Golf Club” to increase market share, fees and revenues. In this section, we present an overview of the public access golf market in which the current Palo Alto GC operates, with a focus on key competitors. The map below shows the location of these facilities in relation to Palo Alto Golf Course. In the tables that follow, NGF Consulting presents summary operational information for the golf facilities identified as direct competition to the Palo Alto Golf Course. NGF Consulting identified the primary competitors based on a number of factors, including price point, location, NGF experience in this market, and input from both facility management and City staff. National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 16 Summary Information – Primary Competitors The table below provides summary information regarding the golf courses we have identified as Palo Alto GC’s primary competitors. Palo Alto Municipal Golf Course Key Competitors – Summary Information Golf Facility Location Type Year Open Par / Slope Front Tee / Back Tee Location Relative to PAGC* Palo Alto Municipal Golf Course Palo Alto MU 18H 1956 72 / 122 5,744 / 6,833 -- Crystal Springs Golf Course Burlingame MU 18H 1924 72 / 127 5,580 / 6,628 16 mi NW Poplar Creek Golf Course San Mateo MU 18H 1933 70 / 115 4,768 / 6,042 14.5 mi NW San Jose Municipal Golf Course San Jose MU 18H 1968 72 / 119 4,200 / 6,700 13 mi SE Santa Clara Golf & Tennis Club Santa Clara MU 18H 1987 72 / 118 5,521 / 6,723 8.5 mi SE Santa Teresa Golf Club San Jose DF 27H 1963 71 / 126 4,011 / 6,742 24.5 mi SE Shoreline Golf Links Mountain View MU 18H 1983 72 / 129 5,437 / 6,996 2.5 mi SE Spring Valley Golf Course Milpitas DF 18H 1956 70 / 113 5,453 / 6,116 15 mi E Sunnyvale Golf Course Sunnyvale MU 18H 1969 70 / 118 5,170 / 5,742 5.5 mi SE *Air miles from subject site, rounded to half-mile; actual driving distances will likely be greater. Type: DF – Daily Fee; MU – Municipal National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 17 The table below shows summary facility information regarding Palo Alto Municipal Golf Course and its primary competitors. Reported rounds for 2007 are from the 2008 Economic Research Associates report to the City. Average green/cart revenue per round for San Jose and Santa Teresa are estimated based on ERA 2007 numbers. Summary Operating Data – Palo Alto Municipal Golf Course and Primary Competitors Golf Facility Total 2007 Rounds Total 2011 Rounds Average Green / Cart Fee per Round 18-Hole Resident Green Fee (WD/WE) 18-Hole Non- Resident Green Fee (WD/WE) Per Person 18-Hole Cart Fee 18-Hole Twilight Green Fee (WD/WE) 18-Hole Senior Resident Green Fee (WD/WE) 18-Hole Super-Twi Green Fee (WD/WE) Palo Alto Municipal GC 76,241 66,740 $30.20 / $4.50 $37/$47 $39/$49 $14 $30/$34 $28/DNA1 $26/$28 Crystal Springs Golf Course 73,654 63,000* $24 / $8 DNA $44/$66 $16 $36/$43 $30/DNA $26/$36 Poplar Creek Golf Course 86,315 70,709 $33.11 / N/A $33$45 $38/$53 $13.50 $27/$33 $22/DNA1 $19/$25 San Jose Municipal GC 86,991 78,000* $32 / $5 DNA $37/$51 $14 $26/$33 $23/DNA $20/$24 Santa Clara Golf & Tennis 87,120 81,000 $26 / $10 $25/$34 $37/$50 $14 $17/$23 res $26/$29 n/r DNA2 $12/$14 res $16/$18 n/r Santa Teresa Golf Club 75,0003 65,000*$29.60 / $5.70 DNA $40/$46/$60 $13.50 $25/$29/$34 DNA $17/$19/$25 Shoreline Golf Links 67,135 50,000 $28 / $5.60 $31/$47 $38/$54 $12 $25/$28 $21/DNA1 $17/$17 Spring Valley Golf Course N/A N/A N/A DNA $37/$55 $14 DNA/$45 $28 M-F $27/$30 Sunnyvale Golf Course 80,513 72,535 $28 / $4.50 DNA/$44 $35/$48 $13.50 $25/$26 res $25/$30 n/r DNA1 $16/$20 KEY *NGF Consulting estimate N/A – Information not available DNA – Does not apply / Not offered Note: For San Jose, Santa Teresa, “afternoon” rates used for twilight and “twilight” for supertwilight; for Spring Valley, “midday” and afternoon used for twi / supertwi. 1 Non-resident seniors pay $33 at Palo Alto, $28 at Shoreline; senior discounts at Poplar Creek are for residents only. 2 Santa Clara offers senior monthly ticket; Sunnyvale offers senior discount card. 3 Rounds listed are for regulation 18-hole course only. National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 18 Summary of Findings – Primary Competitors Based on data reported to NGF Consulting by area golf operators, Palo Alto Golf Course is positioned quite similarly to its chief municipal competitors. The reported average green fee revenue per round among the subject municipal facilities in 2011 generally fell between $28 and $32, while average cart revenue per round was most commonly between $4.50 and $5.70. Posted green fees have been generally flat in this market for the last several years, with only periodic marginal increases aimed at cost recovery at some courses. Non-resident green fees fall within a relatively narrow range among Palo Alto GC and its municipal competitors, but NGF did note that Palo Alto is at the low end of the non-resident pricing spectrum, particularly on weekends. We believe that an improved and re-branded Palo Alto facility should be able to absorb $5 to $10 increases for non-resident rounds, depending on the reconfiguration option chosen and varying by fee category. Of the municipal golf courses profiled (leased Santa Teresa excluded), all but San Jose Municipal offered a fee discount for residents (Sunnyvale restricted the discount to weekends). Most people NGF spoke to consider the city of Mountain View’s Shoreline Golf Links Course to be Palo Alto GC’s most direct competitor. Shoreline’s reputation in terms of maintenance standards has reportedly taken a hit in recent years, and the golf course appeared to be in only fair condition during NGF’s visit. Shoreline has dropped about one-third of its rounds since the mid 2000s and was the least active facility among the key competitors in 2011, with a reported 50,000 rounds. Due to its location, Shoreline probably suffers more than most Bay Area golf courses with the Canadian Geese problem. There were also a large number of coots on the course during our visit. As was the case with nearly every golf market NGF examined nationally, average annual rounds played at many Bay Area golf courses dropped by 25% or more between the late 1990s / 2000 and the middle part of the 2000s. Based on rounds reported to NGF as part of this study effort, rounds played among the direct competitive set have continued to decline since the 2006-07 time period, though variations in the most recent years are at least partly attributable to weather variations. Even with the falling activity levels, rounds played per 18 holes among the subject municipal golf courses remain among the highest we’ve observed anywhere in the U.S. Santa Clara Golf & Tennis and San Jose Municipal, at ±80,000 rounds in recent years, are currently the most active among the competitive set. Because of heightened competition and today’s economic realities, fee discounting (e.g., through internal yield management, use of internet wholesalers such as golfnow.com), even among high-end daily fee courses, is now common in the Bay Area golf market. As a result, the lines can become blurred between “rack” rates and what the majority of customers are actually paying for a round of golf. This disparity is not common among the municipal golf courses we surveyed. National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 19 PALO ALTO GOLF COURSE MARKET POSITIONING ASSESSMENT NGF has attempted to provide a qualitative, or subjective, review of how Palo Alto GC, under both its current configuration and the alternate reconfiguration options being considered, stacks up against its key competitors as identified above. The objective of this relative assessment is to provide some justification for assuming an increase in market share (and sustainable green fees) for Palo Alto GC, especially with the more intensive renovation options. NGF Consulting has scored the key competitors to the plan options (A, D, F and G) for Palo Alto GC. A baseline score is also provided for the existing Palo Alto golf course and facility. This scoring has been accomplished by looking at the amenities, course quality and reputation associated with each competitive facility. Reliance has been made on available reviews, NGF data, discussions with Bay Area golf writers/course reviewers and our visits to the subject courses. To rank the reconfiguration plans for Palo Also we relied on the schematic planning work developed as of this date, together with our ratings for the plan options. Scores are expressed as A+, A, A-, B+, B, etc. through D-. Because of the options (alternate) work to be considered, no overall “average” grade is provided. Rather, categories of comparisons are provided. Such scorings are both subjective and objective, combining impressions with facts about the facilities, and in this case, proposed plans. Because of the subjective component of this review, personal opinion and disagreement with some of the relative scoring should be expected. As such, the scoring should be used as a method for the reader to form opinions in combination with the other reporting covered within this report. Comparison of Palo Alto GC to Key Competitors Golf Facility Clubhouse Facilities Practice Facilities Consumer Reputation Golf Conditions* Palo Alto (Existing) C- C+ C+ C Palo Alto (Option A) C- C+ B B- Palo Alto (Option D) C- C+ A- B+ Palo Alto (Option F) C- B A A- Palo Alto (Option G) C- B+ A+ A San Jose Golf Course D A- A- B- Santa Clara Golf & Tennis B A- A- C+ Shoreline Golf Links B+ B+ C C- Sunnyvale Golf Course C- D- D- C+ Crystal Springs Golf Course A- B+ B+ B Poplar Creek Golf Course A- D B- B Santa Teresa Golf Club B- B B- B- Spring Valley B- B- C+ C+ *As observed January-February 2012 National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 20 Financial Performance Models for Palo Alto Golf Course As part of this study effort, NGF Consulting has prepared an analysis to show what the potential economic performance of Palo Alto Municipal Golf Course could be considering the reconfiguration options presented in this report. In this section, we estimate the facility’s economic performance based on a set of assumptions that may or may not become reality. We feel that these estimates represent the best effort to create a “fair estimate of performance” for this facility based on our understanding of the golf facility operation, its place in the market and the changes proposed in the various renovation options. The Palo Alto Municipal GC performance has been projected under the assumption that the operation is continued ‘as-is’ with three separate contracts for maintenance, pro shop and food/beverage. The basic contract terms in place in FY2012 are assumed to continue through FY2021. The NGF has also assumed a “standard” set of external assumptions for regional economic performance, consumer discretionary income, and weather, with neither severe declines nor increases in any of these measures through 2021. RECENT HISTORICAL PALO ALTO GC PERFORMANCE In order to put the pro forma projections in context, we have summarized the five-year performance history of Palo Alto GC in the table below. Palo Alto Municipal Golf Course Historical Revenue Performance (2008-2011) Revenues FY2008 FY2009 FY2010 FY2011 Green Fees $2,169,230 $2,073,809 $1,958,234 $1,859,473 Cart Fees 345,656 313,224 339,090 302,815 Driving Range 346,447 365,908 399,773 343,878 Monthly Play Cards 161,368 161,544 135,848 154,933 Tournament / League Fees 2,227 2,651 1,921 2,190 Class Program / Other Fees 0 0 0 11,844 Total Golf Course Revenues $3,024,928 $2,917,136 $2,834,866 $2,675,133 Other Revenue Merchandise Sales 718,450 737,050 684,725 663,400 Food Sales 667,000 0 610,725 637,800 Liquor Sales 172,000 0 141,850 149,000 F & B Concession Payments Fixed Lease $0 $43,811 $0 $0 Variable Portion $58,730 $0 $52,680 $55,076 Utility Payment $25,920 $19,440 $28,080 $25,920 Total F & B Concession Payments $84,650 $63,251 $80,760 $80,996 Pro Shop Concession Payments Fixed Lease $0 $0 $0 $0 Merchandise (4%) $28,738 $29,482 $27,389 $26,536 Total Pro Shop Concession Payments $28,738 $29,482 $27,389 $26,536 Total Gross Margin to City $3,138,316 $3,009,869 $2,943,015 $2,782,665 Rounds Played 77,989 75,511 69,791 67,381 National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 21 Palo Alto Municipal Golf Course Historical Expense and Net Income Performance (2008-2011) Expenses FY2008 FY2009 FY2010 FY2011 Salaries & Benefits $951,786 $929,335 $721,596 $259,455 Range Fees 138,579 152,745 142,267 130,152 Cart Fees 131,789 127,836 121,630 117,529 Club Fees 6,473 6,198 5,424 5,576 Fixed Lozares Management Fee 373,435 409,989 388,898 381,544 Contract Maintenance ---475,000 Repairs & maintenance 34,791 39,295 33,321 21,943 Advertising & Publish 5,560 6,583 4,299 10,765 Supplies and Materials 129,891 144,037 119,458 43,742 Gen., Rents, Fac. & Equip 5,959 2,736 944 675 Water Expense 279,326 409,132 271,495 361,870 Other Direct Charges 36,998 39,255 38,882 45,263 Indirect Charges 108,641 132,072 110,343 102,571 Total City Operating Expenses $2,203,228 $2,399,213 $1,958,557 $1,956,085 Net Income From Operations (Loss)$935,088 $610,656 $984,458 $826,580 Income from Sale of Property $35,230 D/S Income $33,629 $32,855 $32,200 $0 Total Non-Operating 33,629 32,855 32,200 35,230 Total Income (Incl. Non-operating)$968,717 $643,511 $1,016,658 $861,810 Debt Service $559,795 $555,686 $560,674 $559,539 Payment to General Fund $94,849 $94,849 $47,684 $94,849 Cost Plan Charges $337,590 $318,969 $332,155 $41,455 Total Debt / Other Charges $992,234 $969,504 $940,513 $695,843 Net Income or (Loss)($23,517)($325,993)$76,145 $165,967 Source: City of Palo Alto Rounds played at Palo Alto GC decreased steadily from FY2008 to FY2011, falling by a total of 10,608, or 13.6%. During the same time, both golf revenues and net income from operations declined by 11.6%. Despite the significant decline in rounds and revenues, net income after debt service, general fund payments and cost plan charges improved by nearly $500,000 between FY2009 and FY2011 due to a reduction in operating expenses and a significant decrease in cost plan charges associated with the conversion to privatized golf course maintenance. National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 22 PROJECTIONS BASED ON “OPTION A” NGF Consulting has created a cash flow model for the continued operation of Palo Alto Municipal Golf Course (to be re-branded as “Baylands Golf Club) under the assumption of the “Option A” improvements. These improvements assume the basic minimum upgrades needed to improve the facility within the SFCJPA flood mitigation project, with no substantial change to the character of the golf course. The NGF revenue estimate has been combined with the present operating structure to provide a full estimate of Baylands GC performance for the next 10 years, assuming successful completion of the “Option A” upgrades. The NGF has projected growth to over $2.8 million in total gross facility revenue to the City (from all sources) by 2016. Key Assumptions The Base assumptions in preparing the projected financial performance estimates covers several categories, including rounds activity, green fees, average revenues (carts, range, concessions, etc.), total revenue, expenses, capital and debt. Under all scenarios, we have assumed use of more complimentary and discount rounds in the initial years after reopening for the purposes of gaining back lost customers, stimulating trial, and general promotions. Rounds Performance The rounds activity performance assumptions include: Rounds in FY2012 assume a 3% reduction from FY2011 total rounds based on actual performance in the first 6 months of FY2012 as reported by staff. Rounds in FY2013 assume ‘as-is’ operation on 18 holes for the first 9 months, then operation on only 9 holes for the last 3 months. During the last three months a reduction of 50% off historical rounds for the corresponding month is assumed. All rounds from April-June 2013 are assumed to be 9-hole rounds. Rounds in FY2014 assume operation on 9 holes for the first 6 months, then operation with an upgraded 18 holes for January-June 2014. All rounds from July- December 2013 are assumed to be 9-hole rounds with a reduction of 50% off historical totals for the corresponding month. Rounds projections assume increases to a stabilized level of 68,200 by 2017. The overall distribution of rounds by category is shown in the table below: National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 23 Palo Alto Municipal Golf Course (Baylands GC) Projected Activity for Option A (2012-2021) As-Is 9-Mos. 18-H / 3 Mos. 9-H 6-Mos. 18-H / 6 Mos. 9-H Operate on 18-holes with modest upgrade to the golf course design FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 -2021 Weekday 18-Hole 5,400 3,500 2,200 5,200 5,300 5,600 Senior Non-Resident 6,300 4,200 2,300 5,850 6,200 6,500 9-Hole 1,500 6,400 11,500 1,500 1,600 1,700 Senior 900 600 500 900 1,000 1,000 Junior 1,400 1,000 600 1,350 1,400 1,500 Early Bird 700 500 300 600 700 700 Twilight 11,300 7,800 4,500 10,800 11,000 11,600 Specials 7,500 5,400 3,500 9,400 7,600 8,000 Junior Card 1,100 800 500 1,050 1,200 1,200 Senior Card 800 600 400 900 1,000 1,000 Non-Resident Senior Card 4,000 2,600 1,500 3,750 4,000 4,200 Sub-Total Weekday 40,900 33,400 27,800 41,300 41,000 43,000 Weekend 18-Hole 10,200 7,000 4,000 8,550 9,800 10,300 9 Hole 1,900 8,700 12,500 1,850 2,000 2,100 Junior 800 600 400 800 900 900 Twilight 6,200 4,100 2,400 5,800 6,000 6,400 Sub-Total Weekend 19,100 20,400 19,300 17,000 18,700 19,700 Complimentary Play 2,500 1,700 1,200 2,500 2,500 2,500 Tournaments 2,200 1,500 1,000 2,000 2,500 3,000 TOTAL ROUNDS 64,700 57,000 49,300 62,800 64,700 68,200 Average Fees / Revenue The average green fees per round by category are shown in the table that follows. Key assumptions driving this estimate include: There is no change in average fees for FY2012 over FY2011. The only adjustment in FY2013 is for the 9-hole rate, which has been adjusted downward to reflect the various forms of discounting expected to be present when the facility is operating on only 9 holes in the final 3 months of FY2013 and the first 6 months of FY2014. NGF has assumed 9-hole green fee will go as low as $12.00 per round in some discount categories (e.g., late afternoon replay rate). Upon re-opening on 18 holes (assumed January 1, 2014), average fees in each category are increased approximately 5% over FY2012 (rounded). For FY2015 through FY2021, NGF has assumed 1% annual increases in all fee categories. Average Cart fee and driving range revenue per round in FY2012 is based on the actuals in FY2011. For FY2013, average cart / range revenue per round is reduced by 20% (from 2011) to reflect the operation on only 9 holes the last 3 months. For National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 24 FY2014, average cart and range revenue is reduced by 30% (from FY2011) to reflect 6 months on 9 holes. By FY2015, average cart and range revenue is restored at the 2011 level and then increased by 1% per year through 2021. Average merchandise sales in FY2012 are based on the actual in FY2011. Average sales are reduced by 20% (from 2011) in FY2013 to reflect 9 holes-only the last 3 months, and 30% in FY2014 to reflect 6 months on 9 holes. By FY2015, average sales are restored to the 2011 level with 1% increases through 2021. Average food and bar sales in FY2012 are based on the actual in FY2011. Average sales are reduced by 20% (from 2011) in FY2013 to reflect 9 holes-only the last 3 months, and 30% in FY2014 to reflect 6 months on 9-holes. By FY2015, average sales are restored to the 2011 level with 1% increases through 2021. The average green fees by category and ancillary revenue per round are shown in the table below (assume 1% annual increases for FY2018-2021 as noted): Palo Alto Municipal Golf Course (Baylands GC) Projected Average Green Fees for Option A (2012-2021) As-Is 9-Mos. 18-H /3 Mos. 9-H 6-Mos. 18-H /6 Mos. 9-H Operate on 18-holes with modest upgrade to the golf course design FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 Weekday 18-Hole $37.00 $37.00 $39.00 $39.39 $39.78 $40.18 Senior Non-Resident $32.00 $32.00 $33.50 $33.84 $34.17 $34.52 9-Hole $23.00 $18.00 $17.00 $25.00 $25.25 $25.50 Senior $28.00 $28.00 $29.50 $29.80 $30.09 $30.39 Junior $14.75 $14.75 $15.50 $15.66 $15.81 $15.97 Early Bird $23.00 $23.00 $24.00 $24.24 $24.48 $24.73 Twilight $30.00 $30.00 $31.50 $31.82 $32.13 $32.45 Specials $19.00 $19.00 $20.00 $20.20 $20.40 $20.61 Junior Card $19.70 $19.70 $20.75 $20.96 $21.17 $21.38 Senior Card $23.50 $23.50 $24.75 $25.00 $25.25 $25.50 Non-Resident Senior Card $27.50 $27.50 $29.00 $29.29 $29.58 $29.88 Weekend 18-Hole $47.00 $47.00 $49.50 $50.00 $50.49 $51.00 9 Hole $27.00 $24.75 $25.75 $28.75 $29.04 $29.33 Junior $15.80 $15.80 $16.50 $16.67 $16.83 $17.00 Twilight $34.00 $34.00 $35.75 $36.11 $36.47 $36.83 Tournaments $34.60 $34.60 $36.50 $36.87 $37.23 $37.61 Avg. Cart Fee / Round $4.54 $3.63 $3.18 $4.54 $4.58 $4.63 Avg. Range Revenue / Round $5.15 $4.12 $3.61 $5.15 $5.20 $5.26 Merchandise Sales / Round $9.94 $7.95 $6.96 $9.94 $9.94 $10.14 Food per Round $9.56 $7.64 $6.69 $9.56 $9.65 $9.75 Bar per Round $2.23 $1.79 $1.56 $2.23 $2.26 $2.28 National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 25 Other Revenue Assumptions Total green fee revenue includes all discount (10-play) cards and monthly passes. Ancillary revenue per round (carts, merchandise, range, food, bar, other) is derived from total rounds, including complimentary rounds. Concession revenue to the City of Palo Alto assumes the same current contract basics through FY2021,with no minimums after April 2013. The City is assumed to collect: (1) 7% of all F & B revenue; and (2) 4% of merchandise sales. Expense Assumptions Labor expenses are for City oversight only. These include allocations for contract oversight, Parks and Recreation Director, Division manager, etc. The estimate is intended to include both salary and benefits allocation and is increased by 4.5% per year through FY2021. Commissions paid to the pro shop vendor include 38% of driving range gross revenue and 40% of gross cart revenue (as per contract). The pro shop management fee is fixed at $28,775 per month for the full duration of the NGF projection. Reimbursements for merchant fees (mostly credit card fees) are assumed to be 1.4% of total facility revenue. Contract maintenance expense to the City of Palo Alto assumes: $62,500 per month for FY2012. $62,500 per month for the first 9 months, then $37,500 per months for the last 3 months of FY2013. $37,500 per month for the first 6 months, then $66,667 per months for the last 6 months of FY2014. $66,667 per month in FY2015, growing at 1.5% annually through 2021. Other expenses such as repairs, maintenance, supplies, club fees, materials and other indirect expenses are all based on actual figures for FY2011 with 20% reduction in FY2013 and 30% reduction in FY2014, returning to FY2011 levels in FY2015 plus 1.5% increases assumed through FY2021. Advertising and publishing expense is reduced by 50% during construction and operation on 9 holes, totaling 15% reduction in FY2013. Upon re-opening the golf course this expense is assumed to increase to $45,000 to account for enhanced marketing of the upgraded facility and re-theme as “Baylands GC.” Advertising and publishing expense is then reduced in subsequent years to a “standard” of around $17,000 per year. Water expense has been highly variable and NGF projections are based on the 4- year average (2008-2011), with assumptions of reductions in use as described previously: 25% reduction during construction 28% reduction upon re-opening Annual increases are assumed at 20% for 2013, 15% for 2014, 9% for 2015, 3% for 2016, 2% for 2017 and 4.5% for FY2018 through FY2021. National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 26 Other direct charges (including electric) are based on actual figures for FY2011 with 20% reduction in FY2013 and 30% reduction in FY2014. A slight reduction expected upon re-opening the golf course in FY2015 (as described by the architect). Annual increase of 1.5% is assumed from FY2015 through FY2021. Debt Service and Other Non-Operating Expense Assumptions Non-operating revenue attributed to debt service is assumed to continue at 6% of debt service payment as long as payments continue (through FY2019). Debt service payments were provided by the City of Palo Alto. The payment to the General Fund ($94,849) expires after FY2012. There is a new payment of ± $107,000 to the General Fund from FY2015 – FY2019 for repayment of a loan for the difference between the estimated capital cost for Option A and the expected reimbursement from the SFCJPA. The Cost Plan Charges are based on actual 2011 charges with historical 3% growth through the end of FY2021. The NGF has added a new “Operating & Capital Reserve” line to the pro forma beginning in FY2015, set at 10% of green fee revenue. Option A also assumes that the full irrigation replacement will be completed in FY2020 (or by 2020) at a cost of $750,000 (real 2012 dollars). Pro Forma Estimate for ‘Option A’ Scenario – FY2012 – FY2021 Utilizing the above assumptions and activity/revenue estimates, NGF Consulting has prepared a pro forma for the next 10 years of operation, including FY2012 (already underway). The table shows that the renovated Baylands Golf Club could produce net income to the City in the range of $690,000 to $950,000 (before debt, cost plan and reserve) through the term of the current debt program. After the City is no longer responsible for debt payments (beginning in FY2020), the facility is expected to produce net income to the City, after all expenses and charges, in the range of ±$620,000, although a one-time expense of $750,000 is projected for 2020 to upgrade the irrigation system. As this is a projection, all figures after FY2012 have been rounded to the nearest $100 for simplicity. National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 27 Palo Alto Golf Course Revenue / Expense - Option A Revenues FY2011 Actual FY2012 Projected FY2013 Projected FY2014 Projected FY2015 Projected FY2016 Projected FY2017 Projected FY2018 Projected FY2019 Projected FY2020 Projected FY2021 Projected Golf Course Revenues Green Fees (Incl. Cards) $2,016,537 $1,960,100 $1,605,200 $1,313,900 $1,967,700 $2,090,000 $2,233,100 $2,255,400 $2,278,000 $2,300,700 $2,323,800 Cart Fees 302,799 293,500 206,900 156,600 284,900 296,500 315,600 318,800 322,000 325,200 328,500 Driving Range 343,911 333,400 235,000 177,800 323,600 336,700 358,500 362,100 365,700 369,400 373,100 Tournament / League Fees 2,196 2,100 1,900 1,600 2,100 2,100 2,200 2,200 2,200 2,200 2,200 Other 11,813 11,500 8,100 6,100 11,100 11,500 12,300 12,300 12,600 12,600 12,800 Total Golf Course Revenues $2,677,256 $2,600,600 $2,057,100 $1,656,000 $2,589,400 $2,736,800 $2,921,700 $2,950,800 $2,980,500 $3,010,100 $3,040,400 Concession Payments Food and Beverage Concession Variable Portion $55,076 $53,400 $37,600 $28,500 $51,800 $53,900 $57,400 $58,000 $58,600 $59,200 $59,700 Utility Payment $25,920 $25,900 $26,400 $26,400 $26,900 $26,900 $27,400 $27,400 $27,900 $27,900 $28,500 Total from F & B Concession $80,996 $79,300 $64,000 $54,900 $78,700 $80,800 $84,800 $85,400 $86,500 $87,100 $88,200 Pro Shop Lease Merchandise (4%) $26,536 $25,700 $18,100 $13,700 $25,000 $25,700 $27,700 $27,700 $28,200 $28,200 $28,800 Total From Pro Shop Concession $26,536 $25,700 $18,100 $13,700 $25,000 $25,700 $27,700 $27,700 $28,200 $28,200 $28,800 Total Gross to City $2,784,788 $2,705,600 $2,139,200 $1,724,600 $2,693,100 $2,843,300 $3,034,200 $3,063,900 $3,095,200 $3,125,400 $3,157,400 Operating Expenses FY2011 Actual FY2012 Projected FY2013 Projected FY2014 Projected FY2015 Projected FY2016 Projected FY2017 Projected FY2018 Projected FY2019 Projected FY2020 Projected FY2021 Projected Salaries & Benefits $259,455 $139,000 $145,300 $151,800 $158,600 $165,700 $173,200 $181,000 $189,100 $197,600 $206,500 Range Fees 130,152 126,700 89,300 67,600 123,000 127,900 136,200 137,600 139,000 140,400 141,800 Cart Fees 117,529 117,400 82,800 62,600 114,000 118,600 126,200 127,500 128,800 130,100 131,400 Club Fees 5,576 5,700 4,600 4,000 5,700 5,800 5,900 6,000 6,100 6,200 6,300 Fixed Lozares Management Fee 345,333 345,300 345,300 345,300 345,300 345,300 345,300 345,300 345,300 345,300 345,300 Merchant Fees Reimbursement 36,211 36,400 28,800 23,200 36,300 38,300 40,900 41,300 41,700 42,100 42,600 Contract Maintenance 475,000 750,000 675,000 625,000 800,000 812,000 824,200 836,600 849,100 861,800 874,700 Repairs & maintenance 21,943 22,300 17,800 15,600 22,300 22,600 22,900 23,200 23,500 23,900 24,300 Advertising & Publish 10,765 10,900 9,300 45,000 30,000 17,000 17,300 17,600 17,900 18,200 18,500 Supplies and Materials 44,417 45,100 36,100 31,600 45,100 45,800 46,500 47,200 47,900 48,600 49,300 Water Expense 361,870 246,000 277,400 207,000 195,000 200,900 204,900 214,100 223,700 233,800 244,300 National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 28 Palo Alto Golf Course Revenue / Expense - Option A Revenues FY2011 Actual FY2012 Projected FY2013 Projected FY2014 Projected FY2015 Projected FY2016 Projected FY2017 Projected FY2018 Projected FY2019 Projected FY2020 Projected FY2021 Projected Other Direct Charges (Incl. Electric) 45,263 45,900 36,700 32,100 44,700 45,400 46,100 46,800 47,500 48,200 48,900 Indirect Charges 102,571 104,100 83,300 72,900 104,100 105,700 107,300 108,900 110,500 112,200 113,900 Total City Operating Expenses $1,956,085 $1,994,800 $1,831,700 $1,683,700 $2,024,100 $2,051,000 $2,096,900 $2,133,100 $2,170,100 $2,208,400 $2,247,800 Net Income From Operations (Loss)$828,703 $740,700 $333,200 $66,600 $694,700 $818,100 $963,200 $956,700 $951,000 $917,000 $909,600 Non-operating Income from Sale of Property 35,230 D/S Income $0 $29,900 $25,700 $25,700 $25,700 $25,800 $25,900 $25,900 $25,900 $0 $0 Total Non-operating $35,230 $29,900 $25,700 $25,700 $25,700 $25,800 $25,900 $25,900 $25,900 $0 $0 Total Income (Incl. Non-operating)$863,933 $656,200 $299,900 $30,700 $651,700 $770,300 $908,200 $899,200 $890,900 $854,200 $844,000 Debt Service $559,539 $499,000 $428,200 $429,000 $428,200 $430,800 $432,200 $432,300 $431,200 $0 $0 Payment to General Fund $94,849 $94,800 $0 $0 $107,600 $107,600 $107,600 $107,600 $107,600 $0 $0 New Debt Service $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Additional Capital $0 $0 $0 $0 $0 $0 $0 $0 $0 $750,000 $0 Reserve for Replacement $0 $0 $0 $0 $196,800 $209,000 $223,300 $225,500 $227,800 $230,100 $232,400 Cost Plan Charges $41,455 $42,700 $44,000 $45,300 $46,700 $48,100 $49,500 $51,000 $52,500 $54,100 $55,700 Total Debt / Other Charges $695,843 $636,500 $472,200 $474,300 $779,300 $795,500 $812,600 $816,400 $819,100 $1,034,200 $288,100 Net Income or (Loss)$168,090 $104,200 ($139,000)($407,700)($84,600)$22,600 $150,600 $140,300 $131,900 ($117,200)$621,500 National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 29 PROJECTIONS BASED ON “OPTION D” The NGF cash flow model for operation under “Option D” assumes a more significant upgrade to the facility with a “more dramatic transformation” as described by the golf course architect. The NGF revenue estimate has been combined with the present operating structure to provide a full estimate of Baylands GC performance for the next 10 years, assuming successful completion of the “Option D” upgrades. The NGF has projected growth to over $3.0 million in total gross revenue (from all sources) to the City by 2016. Key Assumptions The Base assumptions in preparing the projected financial performance match those presented in the projection for Option A,except the following changes noted below: Rounds Performance The rounds activity performance assumptions include: Rounds in FY2013 assume ‘as-is’ operation on 18 holes for the first 9 months, then operation on only 9 holes for the last 3 months. During the last three months a reduction of 50% off historical rounds for the corresponding month is assumed. All rounds from April-June 2013 are assumed to be 9-hole rounds. Rounds in FY2014 assume operation on 9 holes for the first 7 months, then operation with an upgraded 18 holes for February - June 2014. All rounds from July 2013 through January 2014 are assumed to be 9-hole rounds with a reduction of 50% off historical totals for the corresponding months. Rounds in FY2015 through FY2021 assume increases to a stabilized level of 73,300 by 2017. The overall distribution of rounds by category is shown in the table below: National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 30 Palo Alto Municipal Golf Course (Baylands GC) Projected Activity for Option D (2012-2021) As-Is 9-Mos. 18- H /3 Mos. 9-H 5-Mos. 18- H /7 Mos. 9-H Operate on 18-holes with upgraded golf design and more appealing features FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 -2021 Weekday 18-Hole 5,400 3,500 1,800 5,500 5,800 6,100 Senior Non-Resident 6,300 4,200 2,100 6,200 6,550 6,900 9-Hole 1,500 6,400 11,000 1,600 1,600 1,700 Senior 900 600 300 1,100 1,150 1,200 Junior 1,400 1,000 400 1,350 1,400 1,500 Early Bird 700 500 200 800 850 900 Twilight 11,300 7,800 3,700 11,200 11,750 12,400 Specials 7,500 5,400 3,000 7,550 8,000 8,400 Junior Card 1,100 800 400 1,150 1,250 1,300 Senior Card 800 600 300 1,000 1,050 1,100 Non-Resident Senior Card 4,000 2,600 1,200 3,950 4,200 4,400 Sub-Total Weekday 40,900 33,400 24,400 41,400 43,600 45,900 Weekend 18-Hole 10,200 7,000 3,500 9,900 10,450 11,000 9 Hole 1,900 8,700 11,900 2,000 2,150 2,200 Junior 800 600 300 900 950 1,000 Twilight 6,200 4,100 2,100 6,000 6,350 6,700 Sub-Total Weekend 19,100 20,400 17,800 18,800 19,900 20,900 Complimentary Play 2,500 1,700 1,000 2,500 2,500 2,500 Tournaments 2,200 1,500 800 3,000 3,500 4,000 TOTAL ROUNDS 64,700 57,000 44,000 65,700 69,500 73,300 Average Fees / Revenue The average green fees per round by category are shown in the table that follows. Key assumptions driving this estimate include: The only adjustment in FY2013 is for the 9-hole rate, which has been adjusted downward to reflect the various forms of discounting expected to be present when the facility is operating on only 9 holes in the final 3 months of FY2013 and the first 7 months of FY2014. Upon re-opening on 18 holes (assumed January 1, 2014), average fees in each category are increased approximately 10% over FY2012 (rounded). Average Cart fee and driving range revenue per round in FY2012 is based on the actuals in FY2011. For FY2013, average cart / range revenue per round is reduced by 20% (from 2011) to reflect the operation on only 9 holes the last 3 months. For FY2014, average cart and range revenue is reduced by 30% (from FY2011) to reflect 7 months on 9 holes. By FY2015, average cart and range revenue is restored at the 2011 level and then increased by 1% per year through 2021. National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 31 Average merchandise sales in FY2012 are based on the actual in FY2011. Average sales are reduced by 20% (from 2011) in FY2013 to reflect 9 holes-only the last 3 months, and 30% in FY2014 to reflect 7 months on 9 holes. By FY2015, average sales are restored to the 2011 level with 1% increases through 2021. Average food and bar sales in FY2012 are based on the actual in FY2011. Average sales are reduced by 20% (from 2011) in FY2013 to reflect 9 holes-only the last 3 months, and 30% in FY2014 to reflect 7 months on 9 holes. By FY2015, average sales are restored to the 2011 level with 1% increases through 2021. The average green fees by category and ancillary revenue per round are shown in the table below (assume 1% annual increases for FY2018-2021 as noted): Palo Alto Municipal Golf Course (Baylands GC) Projected Average Green Fees for Option D (2012-2021) As-Is 9-Mos. 18-H /3 Mos. 9-H 5-Mos. 18-H /7 Mos. 9-H Operate on 18-holes with upgraded golf design and more appealing features FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 Weekday 18-Hole $37.00 $37.00 $41.00 $41.41 $41.82 $42.24 Senior Non-Resident $32.00 $32.00 $35.00 $35.35 $35.70 $36.06 9-Hole $23.00 $18.00 $17.00 $25.00 $25.25 $25.50 Senior $28.00 $28.00 $31.00 $31.31 $31.62 $31.94 Junior $14.75 $14.75 $16.25 $16.41 $16.58 $16.74 Early Bird $23.00 $23.00 $25.50 $25.76 $26.01 $26.27 Twilight $30.00 $30.00 $33.00 $33.33 $33.66 $34.00 Specials $19.00 $19.00 $21.00 $21.21 $21.42 $21.64 Junior Card $19.70 $19.70 $21.75 $21.97 $22.19 $22.41 Senior Card $23.50 $23.50 $26.00 $26.26 $26.52 $26.79 Non-Resident Senior Card $27.50 $27.50 $30.00 $30.30 $30.60 $30.91 Weekend 18-Hole $47.00 $47.00 $52.00 $52.52 $53.05 $53.58 9 Hole $27.00 $24.75 $27.25 $28.75 $29.04 $29.33 Junior $15.80 $15.80 $17.50 $17.68 $17.85 $18.03 Twilight $34.00 $34.00 $37.50 $37.88 $38.25 $38.64 Tournaments $34.60 $34.60 $38.00 $38.38 $38.76 $39.15 National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 32 Expense Assumptions Contract maintenance expense to the City of Palo Alto assumes: $62,500 per month for FY2012. $62,500 per month for the first 9 months, then $37,500 per months for the last 3 months of FY2013. $37,500 per month for the first 7 months, then $71,000 per months for the last 5 months of FY2014. $71,000 per month in FY2015, growing at 1.5% annually through 2021. Other expenses such as repairs, maintenance, supplies, club fees, materials and other indirect expenses are all based on actual figures for FY2011 with 20% reduction in FY2013 and 30% reduction in FY2014, returning to FY2011 levels in FY2015 plus 1.5% increases assumed through FY2021. Water expense has been highly variable and NGF projections are based on the 4- year average (2008-2011), with assumptions of reductions in use as described previously: 25% reduction during construction 32% reduction upon re-opening Annual increases are assumed at 20% for 2013, 15% for 2014, 9% for 2015, 3% for 2016, 2% for 2017 and 4.5% for FY2018 through FY2021. Other direct charges (including electric) are based on actual 2011 totals, based on actual figures for FY2011 with 20% reduction in FY2013 and 30% reduction in FY2014. A slight reduction expected upon re-opening the golf course in FY2015 (as described by the architect). Annual increase of 1.5% is assumed from FY2015 through FY2021. Debt Service and Other Non-Operating Expense Assumptions There is a new payment of ± $223,700 to the General Fund from FY2015 – FY2019 for repayment of a loan for the difference between the estimated capital cost for Option D and the expected reimbursement from the SFCJPA. Option D also assumes that the full irrigation replacement will be completed in FY2020 (or by 2020) at a cost of $500,000 (real 2012 dollars). Pro Forma Estimate for ‘Option D’ Scenario – FY2012 – FY2021 Utilizing the above assumptions and activity/revenue estimates, NGF Consulting has prepared a pro forma for the next five years of operation, including FY2012 (already underway). The table shows that with a more comprehensive renovation, the Baylands GC could produce net income to the City in the range of $930,000 to $1.27 million (before debt, cost plan and reserve) through the term of the current debt program. After the City is no longer responsible for debt payments (beginning in FY2020), the facility is expected to produce net income to the City in the range of $915,000 per year, although there is a one-time expense of $500,000 for irrigation in 2020. National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 33 Palo Alto Golf Course Revenue / Expense - Option D Revenues FY2011 Actual FY2012 Projected FY2013 Projected FY2014 Projected FY2015 Projected FY2016 Projected FY2017 Projected FY2018 Projected FY2019 Projected FY2020 Projected FY2021 Projected Golf Course Revenues Green Fees (Incl. Cards) $2,016,537 $1,960,100 $1,605,200 $1,213,500 $2,204,500 $2,361,900 $2,522,200 $2,547,500 $2,572,900 $2,598,700 $2,624,600 Cart Fees 302,799 293,500 206,900 139,700 298,100 318,500 339,200 342,600 346,100 349,500 353,000 Driving Range 343,911 333,400 235,000 158,700 338,600 361,700 385,300 389,200 393,100 397,000 401,000 Tournament / League Fees 2,196 2,100 1,900 1,400 2,200 2,300 2,400 2,400 2,400 2,400 2,400 Other 11,813 11,500 8,100 5,500 11,600 12,300 13,200 13,200 13,500 13,500 13,800 Total Golf Course Revenues $2,677,256 $2,600,600 $2,057,100 $1,518,800 $2,855,000 $3,056,700 $3,262,300 $3,294,900 $3,328,000 $3,361,100 $3,394,800 Concession Payments Food and Beverage Concession Variable Portion $55,076 $53,400 $37,600 $25,400 $54,200 $57,900 $61,700 $62,300 $62,900 $63,600 $64,200 Utility Payment $25,920 $25,900 $26,400 $26,400 $26,900 $26,900 $27,400 $27,400 $27,900 $27,900 $28,500 Total from F & B Concession $80,996 $79,300 $64,000 $51,800 $81,100 $84,800 $89,100 $89,700 $90,800 $91,500 $92,700 Pro Shop Lease Merchandise (4%) $26,536 $25,700 $18,100 $12,200 $26,100 $27,600 $29,700 $29,700 $30,300 $30,300 $30,900 Total From Pro Shop Concession $26,536 $25,700 $18,100 $12,200 $26,100 $27,600 $29,700 $29,700 $30,300 $30,300 $30,900 Total Gross to City $2,784,788 $2,705,600 $2,139,200 $1,582,800 $2,962,200 $3,169,100 $3,381,100 $3,414,300 $3,449,100 $3,482,900 $3,518,400 Operating Expenses FY2011 Actual FY2012 Projected FY2013 Projected FY2014 Projected FY2015 Projected FY2016 Projected FY2017 Projected FY2018 Projected FY2019 Projected FY2020 Projected FY2021 Projected Salaries & Benefits $259,455 $139,000 $145,300 $151,800 $158,600 $165,700 $173,200 $181,000 $189,100 $197,600 $206,500 Range Fees 130,152 126,700 89,300 60,300 128,700 137,400 146,400 147,900 149,400 150,900 152,400 Cart Fees 117,529 117,400 82,800 55,900 119,200 127,400 135,700 137,000 138,400 139,800 141,200 Club Fees 5,576 5,700 4,600 4,000 5,700 5,800 5,900 6,000 6,100 6,200 6,300 Fixed Lozares Management Fee 345,333 345,300 345,300 345,300 345,300 345,300 345,300 345,300 345,300 345,300 345,300 Merchant Fees Reimbursement 36,211 36,400 28,800 21,300 40,000 42,800 45,700 46,100 46,600 47,100 47,500 Contract Maintenance 475,000 750,000 675,000 595,800 852,000 864,800 877,800 891,000 904,400 918,000 931,800 Repairs & maintenance 21,943 22,300 17,800 15,600 22,300 22,600 22,900 23,200 23,500 23,900 24,300 Advertising & Publish 10,765 10,900 9,300 45,000 30,000 17,000 17,300 17,600 17,900 18,200 18,500 Supplies and Materials 44,417 45,100 36,100 31,600 45,100 45,800 46,500 47,200 47,900 48,600 49,300 Water Expense 361,870 246,000 277,400 204,000 161,000 165,800 169,100 176,700 184,700 193,000 201,700 National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 34 Palo Alto Golf Course Revenue / Expense - Option D Revenues FY2011 Actual FY2012 Projected FY2013 Projected FY2014 Projected FY2015 Projected FY2016 Projected FY2017 Projected FY2018 Projected FY2019 Projected FY2020 Projected FY2021 Projected Other Direct Charges (Incl. Electric) 45,263 45,900 36,700 32,100 43,500 44,200 44,900 45,600 46,300 47,000 47,700 Indirect Charges 102,571 104,100 83,300 72,900 104,100 105,700 107,300 108,900 110,500 112,200 113,900 Total City Operating Expenses $1,956,085 $1,994,800 $1,831,700 $1,635,600 $2,055,500 $2,090,300 $2,138,000 $2,173,500 $2,210,100 $2,247,800 $2,286,400 Net Income From Operations (Loss)$828,703 $710,800 $307,500 ($52,800)$906,700 $1,078,800 $1,243,100 $1,240,800 $1,239,000 $1,235,100 $1,232,000 Non-operating Income from Sale of Property 35,230 D/S Income $0 $29,900 $25,700 $25,700 $25,700 $25,800 $25,900 $25,900 $25,900 $0 $0 Total Non-operating $35,230 $29,900 $25,700 $25,700 $25,700 $25,800 $25,900 $25,900 $25,900 $0 $0 Total Income (Incl. Non-operating)$863,933 $740,700 $333,200 ($27,100)$932,400 $1,104,600 $1,268,500 $1,266,700 $1,264,900 $1,235,100 $1,232,000 Debt Service $559,539 $499,000 $428,200 $429,000 $428,200 $430,800 $423,200 $432,300 $431,200 $0 $0 Payment to General Fund $94,849 $94,800 $0 $0 $223,700 $223,700 $223,700 $223,700 $223,700 $0 $0 Additional Capital $0 $0 $0 $0 $0 $0 $0 $0 $0 $500,000 $0 Reserve for Replacement $0 $0 $0 $0 $220,500 $236,200 $252,200 $254,800 $257,300 $259,900 $262,500 Cost Plan Charges $41,455 $42,700 $44,000 $45,300 $46,700 $48,100 $49,500 $51,000 $52,500 $54,100 $55,700 Total Debt / Other Charges $695,843 $636,500 $472,200 $474,300 $919,100 $938,800 $948,600 $961,800 $964,700 $814,000 $318,200 Net Income or (Loss)$168,090 $104,200 ($139,000)($501,400)$13,300 $165,800 $319,900 $304,900 $300,200 $421,100 $913,800 National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 35 PROJECTIONS BASED ON “OPTION F” The NGF cash flow model for operation under “Option F” assumes a more significant upgrade to the facility, with a two-thirds complete renovation the addition of a soccer field and a comparable “dramatic transformation” as proposed in Option D. The NGF estimate shows the Baylands GC revenue performance under Option F over the next 10 years would be comparable to Option D. Key Assumptions The Base assumptions in preparing the projected financial performance match those presented in the projection for Option D,except the following changes noted below: Rounds and Average Fee Performance The rounds activity and average fee performance assumptions are the same as proposed in “Option D,” except: Rounds in FY2014 assume operation on 9 holes for the first 9 months, then operation with an upgraded 18 holes for April - June 2014. All rounds from July 2013 through March 2014 are assumed to be 9-hole rounds with totals reduced by 50% for each corresponding month. Palo Alto Municipal Golf Course (Baylands GC) Projected Activity for Option F (2012-2021) As-Is 9-Mos. 18- H /3 Mos. 9-H 3-Mos. 18- H /9 Mos. 9-H Operate on 18-holes with nearly complete renovation FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 -2021 Weekday 18-Hole 5,400 3,500 1,000 5,500 5,800 6,100 Senior Non-Resident 6,300 4,200 1,100 6,200 6,550 6,900 9-Hole 1,500 6,400 12,800 1,600 1,600 1,700 Senior 900 600 200 1,100 1,150 1,200 Junior 1,400 1,000 300 1,350 1,400 1,500 Early Bird 700 500 200 800 850 900 Twilight 11,300 7,800 2,000 11,200 11,750 12,400 Specials 7,500 5,400 2,200 7,550 8,000 8,400 Junior Card 1,100 800 300 1,150 1,250 1,300 Senior Card 800 600 200 1,000 1,050 1,100 Non-Resident Senior Card 4,000 2,600 800 3,950 4,200 4,400 Sub-Total Weekday 40,900 33,400 21,100 41,400 43,600 45,900 Weekend 18-Hole 10,200 7,000 2,100 9,900 10,450 11,000 9 Hole 1,900 8,700 13,700 2,000 2,150 2,200 Junior 800 600 200 900 950 1,000 Twilight 6,200 4,100 1,000 6,000 6,350 6,700 Sub-Total Weekend 19,100 20,400 17,000 18,800 19,900 20,900 Complimentary Play 2,500 1,700 1,100 2,500 2,500 2,500 Tournaments 2,200 1,500 500 3,000 3,500 4,000 TOTAL ROUNDS 64,700 57,000 39,700 65,700 69,500 73,300 Average green and ancillary fees in “Option F” are identical to those presented for “Option D.” National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 36 Expense Assumptions Contract maintenance expense to the City of Palo Alto assumes: $62,500 per month for FY2012 $62,500 per month for the first 9 months, then $37,500 per months for the last 3 months of FY2013 $37,500 per month for the first 9 months, then $66,667 per months for the last 3 months of FY2014 $66,667 per month in FY2015, growing at 1.5% annually through 2021. Other expenses such as repairs, maintenance, supplies, club fees, materials and other indirect expenses are all based on actual figures for FY2011 with 20% reduction in FY2013 and 40% reduction in FY2014, returning to FY2011 levels in FY2015 plus 1.5% increases assumed through FY2021. Water expense has been highly variable and NGF projections are based on the 4- year average (2008-2011), with assumptions of reductions in use as described previously: 20% reduction during construction 32% reduction upon re-opening Annual increases are assumed at 20% for 2013, 15% for 2014, 9% for 2015, 3% for 2016, 2% for 2017 and 4.5% for FY2018 through FY2021 Other direct charges (including electric) are based on actual 2011 totals, based on actual figures for FY2011 with 20% reduction in FY2013 and 40% reduction in FY2014. A slight reduction expected upon re-opening the golf course in FY2015 (as described by the architect). Annual increase of 1.5% is assumed from FY2015 through FY2021. Debt Service and Other Non-Operating Expense Assumptions The NGF has assumed that the $2,855,400 in additional cost needed to complete Option F, over and above the amount estimated to be reimbursed by the SFCJPA, will be funded via the issuance of a new debt program (revenue or General Obligation Bond), with terms of 4.5% interest for 20 years, with payments beginning in FY2015. Option F also assumes that the full irrigation replacement will be completed in FY2020 (or by 2020) at a cost of $250,000 (real 2012 dollars). Pro Forma Estimate for ‘Option F’ Scenario – FY2012 – FY2021 Based on the inputs described above, the pro forma estimate for future performance under “Option F” shows that with this more comprehensive renovation, the Baylands GC could produce net income to the City in the range of $960,000 to $1.34 million (before existing and new debt, cost plan and reserve) through the term of the current debt program. After the City is no longer responsible for its older (1999 issue) debt payments, beginning in FY2020, the facility is expected to produce net income to the City in the range of $720,000 per year, although there is a one-time expense of $250,000 for irrigation in 2020. National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 37 Palo Alto Golf Course Revenue / Expense - Option F Revenues FY2011 Actual FY2012 Projected FY2013 Projected FY2014 Projected FY2015 Projected FY2016 Projected FY2017 Projected FY2018 Projected FY2019 Projected FY2020 Projected FY2021 Projected Golf Course Revenues Green Fees (Incl. Cards) $2,016,537 $1,960,100 $1,605,200 $969,500 $2,204,500 $2,361,900 $2,522,200 $2,547,500 $2,572,900 $2,598,700 $2,624,600 Cart Fees 302,799 293,500 206,900 126,100 298,100 318,500 339,200 342,600 346,100 349,500 353,000 Driving Range 343,911 333,400 235,000 143,200 338,600 361,700 385,300 389,200 393,100 397,000 401,000 Tournament / League Fees 2,196 2,100 1,900 1,300 2,200 2,300 2,400 2,400 2,400 2,400 2,400 Other 11,813 11,500 8,100 4,900 11,600 12,300 13,200 13,200 13,500 13,500 13,800 Total Golf Course Revenues $2,677,256 $2,600,600 $2,057,100 $1,245,000 $2,855,000 $3,056,700 $3,262,300 $3,294,900 $3,328,000 $3,361,100 $3,394,800 Concession Payments Food and Beverage Concession Variable Portion $55,076 $53,400 $37,600 $22,900 $54,200 $57,900 $61,700 $62,300 $62,900 $63,600 $64,200 Utility Payment $25,920 $25,900 $26,400 $26,400 $26,900 $26,900 $27,400 $27,400 $27,900 $27,900 $28,500 Total from F & B Concession $80,996 $79,300 $64,000 $49,300 $81,100 $84,800 $89,100 $89,700 $90,800 $91,500 $92,700 Pro Shop Lease Merchandise (4%) $26,536 $25,700 $19,300 $15,400 $28,100 $28,900 $29,700 $29,700 $30,300 $30,300 $30,900 Total From Pro Shop Concession $26,536 $25,700 $19,300 $15,400 $28,100 $28,900 $29,700 $29,700 $30,300 $30,300 $30,900 Total Gross to City $2,784,788 $2,705,600 $2,139,200 $1,305,300 $2,962,200 $3,169,100 $3,381,100 $3,414,300 $3,449,100 $3,482,900 $3,518,400 Operating Expenses FY2011 Actual FY2012 Projected FY2013 Projected FY2014 Projected FY2015 Projected FY2016 Projected FY2017 Projected FY2018 Projected FY2019 Projected FY2020 Projected FY2021 Projected Salaries & Benefits $259,455 $139,000 $145,300 $151,800 $158,600 $165,700 $173,200 $181,000 $189,100 $197,600 $206,500 Range Fees 130,152 126,700 89,300 54,400 128,700 137,400 146,400 147,900 149,400 150,900 152,400 Cart Fees 117,529 117,400 82,800 50,400 119,200 127,400 135,700 137,000 138,400 139,800 141,200 Club Fees 5,576 5,700 4,600 3,400 5,700 5,800 5,900 6,000 6,100 6,200 6,300 Fixed Lozares Management Fee 345,333 345,300 345,300 345,300 345,300 345,300 345,300 345,300 345,300 345,300 345,300 Merchant Fees Reimbursement 36,211 36,400 28,800 17,400 40,000 42,800 45,700 46,100 46,600 47,100 47,500 Contract Maintenance 475,000 750,000 675,000 537,500 800,000 812,000 824,200 836,600 849,100 861,800 874,700 Repairs & maintenance 21,943 22,300 17,800 13,400 22,300 22,600 22,900 23,200 23,500 23,900 24,300 Advertising & Publish 10,765 10,900 9,300 45,000 30,000 17,000 17,300 17,600 17,900 18,200 18,500 Supplies and Materials 44,417 45,100 36,100 21,700 45,100 45,800 46,500 47,200 47,900 48,600 49,300 Water Expense 361,870 246,000 280,400 217,600 182,400 187,900 191,700 200,300 209,300 218,700 228,500 National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 38 Palo Alto Golf Course Revenue / Expense - Option F Revenues FY2011 Actual FY2012 Projected FY2013 Projected FY2014 Projected FY2015 Projected FY2016 Projected FY2017 Projected FY2018 Projected FY2019 Projected FY2020 Projected FY2021 Projected Other Direct Charges (Incl. Electric) 45,263 45,900 36,700 22,000 42,500 43,100 43,700 44,400 45,100 45,800 46,500 Indirect Charges 102,571 104,100 83,300 50,000 104,100 105,700 107,300 108,900 110,500 112,200 113,900 Total City Operating Expenses $1,956,085 $1,994,800 $1,834,700 $1,529,900 $2,023,900 $2,058,500 $2,105,800 $2,141,500 $2,178,200 $2,216,100 $2,254,900 Net Income From Operations (Loss)$828,703 $710,800 $304,500 ($224,600)$938,300 $1,110,600 $1,275,300 $1,272,800 $1,270,900 $1,266,800 $1,263,500 Non-operating Income from Sale of Property 35,230 D/S Income $0 $29,900 $25,700 $25,700 $25,700 $25,800 $25,900 $25,900 $25,900 $0 $0 Total Non-operating $35,230 $29,900 $25,700 $25,700 $25,700 $25,800 $25,900 $25,900 $25,900 $0 $0 Total Income (Incl. Non-operating)$863,933 $740,700 $330,200 ($198,900)$964,000 $1,136,400 $1,300,700 $1,298,700 $1,296,800 $1,266,800 $1,263,500 Debt Service $559,539 $499,000 $428,200 $429,000 $428,200 $430,800 $423,200 $432,300 $431,200 $0 $0 Payment to General Fund $94,849 $94,800 $0 $0 $0 $0 $0 $0 $0 $0 $0 Additional Capital $0 $0 $0 $0 $0 $0 $0 $0 $0 $250,000 $0 New Debt Service $0 $0 $0 $0 $219,500 $219,500 $219,500 $219,500 $219,500 $219,500 $219,500 Reserve for Replacement $0 $0 $0 $0 $220,500 $236,200 $252,200 $254,800 $257,300 $259,900 $262,500 Cost Plan Charges $41,455 $42,700 $44,000 $45,300 $46,700 $48,100 $49,500 $51,000 $52,500 $54,100 $55,700 Total Debt / Other Charges $695,843 $636,500 $472,200 $474,300 $914,900 $934,600 $944,400 $957,600 $960,500 $783,500 $537,700 Net Income or (Loss)$168,090 $104,200 ($142,000)($673,200)$49,100 $201,800 $356,300 $341,100 $336,300 $483,300 $725,800 NOTE: Option F would likely include additional revenue from soccer fields of approximately $78,000 per field per year. National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 39 PROJECTIONS BASED ON “OPTION G” The NGF projection model for “Option G” represents a significant change from other options presented. This option would involve a complete renovation of the Palo Alto Municipal Golf Course (to be re-branded as “Baylands Golf Club). The project would involve a full closure of the golf course from April 2013 through March 2014, re-opening as a brand new golf course with the highest quality golf features commanding higher fees than any other option presented. The full golf course irrigation system would be replaced and three new soccer fields would be added to the site. Subsequent to the initial draft report, the City Finance Committee recommended that this option include rebuilding of all 18 greens, re-turfing of all fairways, construction of an on- course restroom, and rebuilding the practice green area. These changes should further enhance the product’s marketability and the golfer experience. The NGF revenue estimate has been combined with the present operating structure to provide a full estimate of Baylands GC performance for the next 10 years, assuming successful completion of the proposed “Option G” upgrades. The NGF has projected growth to almost $3.2 million in total gross revenues (from all sources) to the City by 2016. Key Assumptions The Base assumptions in preparing the projected financial performance estimates covers several categories, including rounds activity, green fees, average revenues (carts, range, concessions, etc.), total revenue, expenses, capital and debt. Rounds Performance The rounds activity performance assumptions include: Rounds in FY2012 assume a 3% reduction from FY2011 total rounds based on actual performance in the first 6 months of FY2012. Rounds in FY2013 assume ‘as-is’ operation on 18 holes for the first 9 months. The golf course then closes entirely for the next 12 months (April 2013 –March 2014), re- opening as an upgraded new facility on April 1, 2014. Upon re-opening, rounds are assumed to grow to 67,900 in FY2015, stabilizing at 75,700 rounds by 2017. The overall distribution of rounds by category is shown in the table below: National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 40 Palo Alto Municipal Golf Course (Baylands GC) Projected Activity for Option G (2012-2021) As-Is 9-Mos. 18- H / 3 Mos. closed 3-Mos. 18- H / 9 Mos. Closed Operate on 18-holes with maximum renovation and upgrade FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 -2021 Weekday 18-Hole 5,400 4,000 1,000 5,500 5,800 6,100 Senior Non-Resident 6,300 4,700 1,300 6,200 6,550 6,900 9-Hole 1,500 1,100 400 1,550 1,600 1,700 Senior 900 600 250 1,100 1,150 1,200 Junior 1,400 1,000 400 1,450 1,500 1,600 Early Bird 700 500 200 800 850 900 Twilight 11,300 8,400 2,800 11,500 12,150 12,800 Specials 7,500 5,600 2,200 7,650 8,050 8,500 Junior Card 1,100 800 300 1,150 1,250 1,300 Senior Card 800 600 200 1,000 1,050 1,100 Non-Resident Senior Card 4,000 3,000 1,000 4,000 4,300 4,500 Sub-Total Weekday 40,900 30,300 10,050 41,900 44,250 46,600 Weekend 18-Hole 10,200 7,600 2,500 10,050 10,650 11,200 9 Hole 1,900 1,400 500 2,000 2,100 2,200 Junior 800 600 200 900 950 1,000 Twilight 6,200 4,600 1,500 6,050 6,350 6,700 Sub-Total Weekend 19,100 14,200 4,700 19,000 20,050 21,100 Complimentary Play 2,500 1,800 650 3,500 3,500 3,500 Tournaments 2,200 1,600 600 3,500 4,000 4,500 TOTAL ROUNDS 64,700 47,900 16,000 67,900 71,800 75,700 Average Fees / Revenue The average green fees per round by category are shown in the table that follows. Key assumptions driving this estimate include: There is no change in average fees for FY2012 over FY2011. Upon re-opening on 18 holes (assumed April 1, 2014), average fees in each category are increased approximately 15% over FY2012 (rounded). For FY2015 through FY2021, NGF has assumed 1% annual increases in all fee categories. All other ancillary revenue centers mirror estimates made in Options D and F. The average green fees by category and ancillary revenue per round are shown in the table below (assume 1% annual increases for FY2018-2021 as noted): National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 41 Palo Alto Municipal Golf Course (Baylands GC) Projected Average Green Fees for Option G (2012-2021) As-Is 9-Mos. 18- H / 3 Mos. closed 3-Mos. 18- H / 9 Mos. Closed Operate on 18-holes with maximum renovation and upgrade FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 Weekday 18-Hole $37.00 $37.00 $42.50 $42.93 $43.35 $43.79 Senior Non-Resident $32.00 $32.00 $37.00 $37.37 $37.74 $38.12 9-Hole $23.00 $18.00 $24.00 $25.00 $25.25 $25.50 Senior $28.00 $28.00 $32.00 $32.32 $32.64 $32.97 Junior $14.75 $14.75 $17.00 $17.17 $17.34 $17.52 Early Bird $23.00 $23.00 $26.50 $26.77 $27.03 $27.30 Twilight $30.00 $30.00 $34.50 $34.85 $35.19 $35.55 Specials $19.00 $19.00 $22.00 $22.22 $22.44 $22.67 Junior Card $19.70 $19.70 $22.50 $22.73 $22.95 $23.18 Senior Card $23.50 $23.50 $27.00 $27.27 $27.54 $27.82 Non-Resident Senior Card $27.50 $27.50 $31.50 $31.82 $32.13 $32.45 Weekend 18-Hole $47.00 $47.00 $54.00 $54.54 $55.09 $55.64 9 Hole $27.00 $24.75 $28.50 $28.75 $29.04 $29.33 Junior $15.80 $15.80 $18.00 $18.18 $18.36 $18.55 Twilight $34.00 $34.00 $39.00 $39.39 $39.78 $40.18 Tournaments $34.60 $34.60 $40.00 $40.40 $40.80 $41.21 Other Revenue Assumptions Total green fee revenue includes all discount (10-play) cards and monthly passes. Ancillary revenue per round (carts, merchandise, range, food, bar, other) is derived from total rounds, including complimentary rounds. Concession revenue to the City of Palo Alto assumes the same current contract basics through FY2021,with no minimums after April 2013. The City is assumed to collect: (1) 7% of all food and beverage revenue; and (2) 4% of merchandise sales. Expense Assumptions Labor expenses are for City oversight only. These include allocations for contract oversight, Parks and Recreation Director, Division manager, etc. The estimate is intended to include both salary and benefits allocation and is increased by 4.5% per year through FY2021. Commissions paid to the pro shop vendor include 38% of driving range gross revenue and 40% of gross cart revenue (as per contract). The pro shop management fee is fixed at $28,775 per month while the golf course is open. No management fees are assumed for April 2013 through March 2014. Reimbursements for merchant fees (mostly credit card fees) are assumed to be 1.4% of total facility revenue. National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 42 Contract maintenance expense to the City of Palo Alto assumes: $62,500 per month for FY2012 $62,500 per month for the first 9 months of FY2013 No contract maintenance expense for April 2013 through March 2014 $68,750 per month (fixed) upon re-opening in April 2014 (3 months in FY2014), then $68,750 per month in FY2015, growing at 1.5% annually through 2021 Other expenses such as repairs, maintenance, supplies, club fees, materials and other indirect expenses are all based on actual figures for FY2011 with 20% reduction in FY2013 and 70% reduction in FY2014, returning to FY2011 levels in FY2015 plus 1.5% increases assumed through FY2021. Advertising and publishing expense is reduced by 50% during construction and operation on 9 holes, totaling 15% reduction in FY2013. Upon re-opening the golf course this expense is assumed to increase $45,000 to account for enhanced marketing of the upgraded facility and re-theme as “Baylands GC.” Advertising and publishing expense is then reduced in subsequent years to a “standard” of around $17,000 per year. Water expense has been highly variable and NGF projections are based on the 4- year average (2008-2011), with assumptions of reductions in use as described previously: 60% reduction during construction 32% reduction upon re-opening Annual increases are assumed at 20% for 2013, 15% for 2014, 9% for 2015, 3% for 2016, 2% for 2017 and 4.5% for FY2018 through FY2021 Other direct charges (including electric) are based on actual 2011 totals, based on actual figures for FY2011 with 20% reduction in FY2013 and 70% reduction in FY2014. A slight reduction expected upon re-opening the golf course in FY2015 (as described by the architect). Annual increase of 1.5% is assumed from FY2015 through FY2021. Debt Service and Other Non-Operating Expense Assumptions The NGF has assumed that the $4,570,000 in additional cost needed to complete Option G, over and above the amount reimbursed by the SFCJPA, will be funded via the issuance of a new debt program (revenue or General Obligation Bond), with terms of 4.5% interest for 20 years, with payments beginning in FY2015. Pro Forma Estimate for ‘Option G’ Scenario – FY2012 – FY2021 Based on the inputs described above, the pro forma estimate for future performance under “Option G” shows that with this complete renovation, the Baylands GC could produce net income to the City in the range of $1.07 to $1.42 million (before existing and new debt, cost plan and reserve) through the term of the current debt program that ends in 2019. After the City is no longer responsible for its older (1999 issue) debt payments, the facility is expected to produce net income to the City, after all expenses and other charges, in the range of $740,000 per year. National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 43 Palo Alto Golf Course Revenue / Expense - Option G Revenues FY2011 Actual FY2012 Projected FY2013 Projected FY2014 Projected FY2015 Projected FY2016 Projected FY2017 Projected FY2018 Projected FY2019 Projected FY2020 Projected FY2021 Projected Golf Course Revenues Green Fees (Incl. Cards) $2,016,537 $1,960,100 $1,445,100 $544,300 $2,341,500 $2,510,600 $2,680,900 $2,707,800 $2,734,800 $2,762,200 $2,789,800 Cart Fees 302,799 293,500 173,900 72,600 311,100 332,300 353,900 357,400 361,000 364,600 368,200 Driving Range 343,911 333,400 197,500 82,400 353,400 377,400 401,900 405,900 410,000 414,100 418,200 Tournament / League Fees 2,196 2,100 1,600 500 2,200 2,400 2,500 2,500 2,500 2,500 2,500 Other 11,813 11,500 6,800 2,800 12,000 12,700 13,700 13,700 13,900 13,900 14,200 Total Golf Course Revenues $2,677,256 $2,600,600 $1,824,900 $702,600 $3,020,200 $3,235,400 $3,452,900 $3,487,300 $3,522,200 $3,557,300 $3,592,900 Concession Payments Food and Beverage Concession Variable Portion $55,076 $53,400 $31,600 $13,200 $56,600 $60,400 $64,400 $65,000 $65,700 $66,300 $67,000 Utility Payment $25,920 $25,900 $26,400 $26,400 $26,900 $26,900 $27,400 $27,400 $27,900 $27,900 $28,500 Total from F & B Concession $80,996 $79,300 $58,000 $39,600 $83,500 $87,300 $91,800 $92,400 $93,600 $94,200 $95,500 Pro Shop Lease Merchandise (4%) $26,536 $25,700 $15,400 $6,600 $28,900 $29,500 $30,700 $30,700 $31,300 $31,300 $31,900 Total From Pro Shop Concession $26,536 $25,700 $15,400 $6,600 $28,900 $29,500 $30,700 $30,700 $31,300 $31,300 $31,900 Total Gross to City $2,784,788 $2,705,600 $1,898,100 $748,600 $3,130,700 $3,351,200 $3,575,400 $3,610,400 $3,647,100 $3,682,800 $3,720,300 Operating Expenses FY2011 Actual FY2012 Projected FY2013 Projected FY2014 Projected FY2015 Projected FY2016 Projected FY2017 Projected FY2018 Projected FY2019 Projected FY2020 Projected FY2021 Projected Salaries & Benefits $259,455 $139,000 $145,300 $151,800 $158,600 $165,700 $173,200 $181,000 $189,100 $197,600 $206,500 Range Fees 130,152 126,700 75,100 31,300 134,300 143,400 152,700 154,200 155,800 157,400 158,900 Cart Fees 117,529 117,400 69,600 29,000 124,400 132,900 141,600 143,000 144,400 145,800 147,300 Club Fees 5,576 5,700 4,600 1,700 5,700 5,800 5,900 6,000 6,100 6,200 6,300 Fixed Lozares Management Fee 345,333 345,300 259,000 86,300 345,300 345,300 345,300 345,300 345,300 345,300 345,300 Merchant Fees Reimbursement 36,211 36,400 25,500 9,800 42,300 45,300 48,300 48,800 49,300 49,800 50,300 Contract Maintenance 475,000 750,000 562,500 206,300 825,000 837,400 850,000 862,800 875,700 888,800 902,100 Repairs & maintenance 21,943 22,300 17,800 6,700 22,300 22,600 22,900 23,200 23,500 23,900 24,300 Advertising & Publish 10,765 10,900 8,700 45,000 30,000 17,000 17,300 17,600 17,900 18,200 18,500 Supplies and Materials 44,417 45,100 36,100 13,500 45,100 45,800 46,500 47,200 47,900 48,600 49,300 Water Expense 361,870 246,000 250,900 133,000 183,000 188,500 192,300 201,000 210,000 219,500 229,400 National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 44 Palo Alto Golf Course Revenue / Expense - Option G Revenues FY2011 Actual FY2012 Projected FY2013 Projected FY2014 Projected FY2015 Projected FY2016 Projected FY2017 Projected FY2018 Projected FY2019 Projected FY2020 Projected FY2021 Projected Other Direct Charges (Incl. Electric) 45,263 45,900 36,700 13,800 41,500 42,100 42,700 43,300 43,900 44,600 45,300 Indirect Charges 102,571 104,100 83,300 31,200 104,100 105,700 107,300 108,900 110,500 112,200 113,900 Total City Operating Expenses $1,956,085 $1,994,800 $1,575,100 $759,400 $2,061,600 $2,097,500 $2,146,000 $2,182,300 $2,219,400 $2,257,900 $2,297,400 Net Income From Operations (Loss)$828,703 $710,800 $323,000 ($10,800)$1,069,100 $1,253,700 $1,429,400 $1,428,100 $1,427,700 $1,424,900 $1,422,900 Non-operating Income from Sale of Property 35,230 D/S Income $0 $29,900 $25,700 $25,700 $25,700 $25,800 $25,900 $25,900 $25,900 $0 $0 Total Non-operating $35,230 $29,900 $25,700 $25,700 $25,700 $25,800 $25,900 $25,900 $25,900 $0 $0 Total Income (Incl. Non-operating)$863,933 $740,700 $348,700 $14,900 $1,094,800 $1,279,500 $1,454,800 $1,454,000 $1,453,600 $1,424,900 $1,422,900 Debt Service $559,539 $499,000 $428,200 $429,000 $428,200 $430,800 $423,200 $432,300 $431,200 $0 $0 Payment to General Fund $94,849 $94,800 $0 $0 $0 $0 $0 $0 $0 $0 $0 New Debt Service $0 $0 $0 $0 $351,300 $351,300 $351,300 $351,300 $351,300 $351,300 $351,300 Operating & Capital Reserve $0 $0 $0 $0 $234,200 $251,100 $268,100 $270,800 $273,500 $276,200 $279,000 Cost Plan Charges $41,455 $42,700 $44,000 $45,300 $46,700 $48,100 $49,500 $51,000 $52,500 $54,100 $55,700 Total Debt / Other Charges $695,843 $636,500 $472,200 $474,300 $1,060,400 $1,081,300 $1,092,100 $1,105,400 $1,108,500 $681,600 $686,000 Net Income or (Loss)$168,090 $104,200 ($123,500)($459,400)$34,400 $198,200 $362,700 $348,600 $345,100 $743,300 $736,900 NOTE: Option G would likely include additional revenue from soccer fields estimated by City at approximately $78,000 per field per year ($234,000 for 3 fields). National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 45 FINANCIAL PROJECTIONS SUMMARY Summary of Options Comparative table for options in 2015 and 2020 are shown below: Summary in 2015 Summary in FY2015 Modest Upgrade Option A More significant upgrade / nicer features Option D Nearly complete renovation Option F Maximum renovation Option G TOTAL ROUNDS 62,800 65,700 65,700 67,900 ANNUAL ROUNDS REVENUE $1,967,709 $2,204,512 $2,204,512 $2,341,455 AVERAGE GREEN FEE PER ROUND $31.33 $33.55 $33.55 $34.48 Revenues FY2015 Projected FY2015 Projected FY2015 Projected FY2015 Projected Total Golf Course Revenues $2,589,400 $2,855,000 $2,855,000 $3,020,200 Concessions Total from F & B Concession $78,700 $81,100 $81,100 $83,500 Total From Pro Shop Concession $25,000 $26,100 $26,100 $27,000 Total Gross to City $2,693,100 $2,962,200 $2,962,200 $3,130,700 Expenses Water 195,000 161,000 182,400 225,600 Maintenance Contract 800,000 852,000 800,000 825,000 Total to Pro Shop Contract 618,600 633,200 633,200 646,300 All Other Expenses 410,500 409,300 408,300 407,300 Total City Operating Expenses 2,024,100 2,055,500 2,023,900 2,104,200 Net Income From Operations (Loss)$669,000 $906,700 $938,300 $1,026,500 Total Income (Incl. Non-operating)$694,700 $932,400 $964,000 $1,052,200 Total Debt/Other Charges $779,300 $1,501,100 $914,900 $1,016,600 Net Income or (Loss)($84,600)($568,700)$49,100 $35,600 Footnotes Partial irrigation Partial irrigation Potential for additional $78,000 Soccer revenue Potential for additional $234,000 Soccer revenue National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 46 Summary in 2020 Summary in FY2020 Modest Upgrade Option A More significant upgrade / nicer features Option D Nearly complete renovation Option F Maximum renovation Option G TOTAL ROUNDS 68,200 73,300 73,300 75,700 ANNUAL ROUNDS REVENUE $2,300,746 $2,598,658 $2,598,658 $2,762,185 AVERAGE GREEN FEE PER ROUND $33.74 $35.45 $35.45 $36.49 Revenues FY2015 Projected FY2015 Projected FY2015 Projected FY2015 Projected Total Golf Course Revenues $3,010,100 $3,361,100 $3,361,100 $3,557,300 Concessions Total from F & B Concession $87,100 $91,500 $91,500 $94,200 Total From Pro Shop Concession $28,200 $30,300 $30,300 $31,300 Total Gross to City $3,125,400 $3,482,900 $3,482,900 $3,682,800 Expenses Water 233,800 193,000 218,700 219,500 Maintenance Contract 861,800 918,000 861,800 888,800 Total to Pro Shop Contract 657,900 683,100 683,100 698,300 All Other Expenses 454,900 453,700 452,500 451,300 Total City Operating Expenses $2,208,400 $2,247,800 $2,216,100 $2,257,900 Net Income From Operations (Loss)$917,000 $1,235,100 $1,266,800 $1,424,900 Total Income (Incl. Non-operating)$917,000 $1,235,100 $1,266,800 $1,424,900 Total Debt/Other Charges $1,034,200 $814,000 $783,500 $681,600 Net Income or (Loss)($117,200)$421,100 $483,300 $743,300 Footnotes Partial irrigation Partial irrigation Potential for additional $78,000 Soccer revenue Potential for additional $234,000 Soccer revenue Summary Results The results of the NGF Consulting financial projections for Palo Alto Golf Course, based on the various reconfiguration options and the analysis and assumptions presented in this report, show that the facility will generate, to varying degrees based on the renovation option, improved rounds and revenue performance compared to the base “as is” scenario. In relation to estimating lost rounds and revenues during construction, NGF has assumed for all options under which the facility will remain open for 9-hole play that the City will still be able to provide a quality golf experience that is minimally disruptive to the golfer. National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 47 Key observations regarding projected “Baylands Golf Club at Palo Alto” financial performance: NGF has estimated that total revenues to the City will decrease by varying amounts during construction for the four options evaluated. For instance, under Option A, the total two-year cumulative reduction in gross revenue to the City is nearly $1.5 million. This is based on estimated FY 2012 gross revenues. However, because of expense reductions (e.g., range and cart payments, contract maintenance, water, indirect charges) during the time of construction, net income from operations (before debt, other costs) is estimated to decrease by ±$1.08 million over the two-year period, based on actual estimated FY 2012 net operating income. Option G, which involves a 12-month closure of all 18 holes, naturally results in the greatest reduction in revenue, with only $748,600 gross income from operations in FY 2014, when the course is closed for 9 months. The two-year cumulative loss in gross revenue to the City, using FY 2012 as a base, is estimated at nearly $2.7 million, while the loss in net income is estimate at ± $1.1 million. Rounds played, after years of decline, are projected to rebound under all of the reconfiguration options, with options D and F at stabilized total rounds at 73,300, representing a 5,100 round improvement over Option A. Option G – full renovation – results in the highest stabilized activity level, at nearly 76,000 annual rounds. Option D, which is expected to cost ±$600,000 more than base Option A, is projected to produce significantly higher net operating income than Option A, resulting in a quick pay back of the investment. Stabilized Net Operating Income (before debt and other costs such as capital, reserve, and cost plan) is projected to be highest under Option G, with 2021 NOI projected at about $1.42 million. Option F is second with ±$1.26 million, followed closely by Option D at about $1.23 million. After additional debt associated with improvements is considered, Option G is projected to produce overall Net Income to the City that is moderately lower than that of Option D. However, further down the road when the debt for Option G is paid off, it is expected to produce the highest Net Income for the City of Palo Alto. Justifications for Revenue Projections NGF is confident, given the inputs (e.g., expected quality and appeal following improvements) for each option, that the rounds, fees, revenues, and expenses projected under each scenario are reasonable and achievable. The highest stabilized rounds activity we have projected under any scenario was less than 76,000 total rounds, a level that was achieved as recently as 2007- 08 (and was far exceeded in the past) with a product that was inferior to what a reconfigured and re-branded golf course will bring to market. Also, we feel we have been conservative in terms of the fee increases that the improved facility will be able to sustain. Likewise, we believe it is more difficult to estimate the impact on revenues during the time of construction, as there are many variables, not the least of which are golfer behavior and preferences. Pro formas are, by their nature, models based on a set of assumptions that may or may not become reality and which are subject to a number of uncontrollable factors (e.g., weather variations, the economy, quality/quantity of the competition), but NGF believes that our projections represent a “reasonable” estimate of performance for the “Baylands” facility based on the factors discussed in this report. Among the factors considered when crafting our projections for each model are: National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 48 Expected higher quality of the Palo Alto Municipal Golf Course (level of improvement depends on intensity of Reconfiguration Option chosen, level of “additional” work). Re-branding and effective marketing of the “Baylands Golf Club at Palo Alto”, along with more proactive direct selling of larger tournaments and events. Reinventing the product should re-energize the current customer base, resulting in increased frequency of play, and also position the facility to compete more effectively for non-resident rounds. Results of ERA’s 2008 survey revealed that the number one reason Palo Alto GC was not the primary course of respondents was “course quality/play experience”. Maintenance conditions that will position the facility in the mid-to-upper tier of municipal golf courses in this market. Non-resident green fees at Palo Alto, especially on weekends, are at the low end of the price range among the direct municipal competitors. With an improved product, there should be little resistance to modest price increases at the “Baylands”. Maintaining a strong price/value proposition will ensure that the improved golf course remains very competitive in the area market despite expected modest fee increases. Palo Alto Municipal Golf Course is operating at rounds levels that are will below peak levels from 1990s and early-to-mid 2000s. The facility has achieved rounds played levels close to what NGF Consulting is projecting under the most favorable option as recently as FY 2008. The Bay Area remains one of the most active markets for municipal golf in the nation. At the peak of the market, Palo Alto and several of its chief competitors realized annual activity levels approaching, or even exceeding, 100,000 rounds. Though play levels may never approach these extraordinary numbers again, we believe the market has the potential to make a recovery. NGF believes there is a lack of truly outstanding direct competitors to Palo Alto GC. Also, it is likely that no new golf course inventory will be added to this market for the foreseeable future. Potential for regional economic recovery, increased discretionary income, etc. The Bay Area and Silicon Valley have some specific economic attributes that act as natural demand drivers for quality golf courses, including high incomes, an extremely robust corporate presence, and one very high visitation numbers. Other Considerations Regarding Improvement Options Aside from the expected economic impact of the various base Reconfiguration Options, there remain questions that will need to be addressed as the City weighs the reconfiguration options, their respective forecasts in terms of rounds/revenue and what additional work will still be required in the instance of doing less now and deferring certain improvements to later. The overriding decision to be made is plan option (A, D, F or G) to go with and how that fundamental decision will affect future decisions. For example, reconfiguration Option A, while least costly of those to be considered, precludes routing improvements beyond those of the few holes being shifted and places overall restrictions on future improvements to the golf asset. Largely, the golf course would remain the same in its anatomy for the long term under A, but of course the golf course may be in much better condition and may be complemented by better support amenities in the future. The misconnection may be the course itself — much nicer, but as our grading exercise concludes, not to the level of the other options because of their improvements to hole- orientation, variety and excitement. National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 49 The success rate for increased revenues, better reputation and the ability to be true to the idea of a transformed golf experience, increases with a more intensive re-working of the golf course. The decision on which option to adopt will need to take into account many factors, together with the financial forecasts prepared. OPTION “G” SENSITIVITY ANALYSIS As noted, pro forma projections have been made under a set of assumptions that may or may not come to fruition. Also, projections are subject to several uncontrollable factors such as yearly weather variations, economic conditions, and the nature of the competition. Therefore, in the interest of conservatism we have prepared a sensitivity analysis for Option G (identified by the City as the preferred option) of two key variables related to revenues – rounds played and average green fee. Specifically, we have run three scenarios that present deviations from the “base” model presented above: (1) Rounds reduced to moderately lower than projected FY 12 performance, continuing downward trend; (2) Average green fee increasing over current by just less than half the 15% projected increase in base model; and (3) Rounds and average green fees both lower, in combination. Because of the virtually limitless number of combinations, other variables, such as fixed operating expenses, remain the same as in the base scenario. The sensitivity scenarios reveal that the lower than projected (base) green fee growth would result in a reduction in net income of approximately 47% over the base case. Reduced rounds result in a ±$500,000 reduction in net income, while the “worst case” – both rounds and green fee increases below the projected base model – produces about $640,000 lower net income. Option “G” Sensitivity Analysis - Summary for 2017 Summary in FY2017 Expected Case Option G Reduced Rounds Option G Reduced Fees Option G Reduced Rounds + Fees Option G TOTAL ROUNDS 75,700 63,100 75,700 63,100 ANNUAL ROUNDS REVENUE $2,680,949 $2,221,879 $2,487,511 $2,062,380 AVERAGE GREEN FEE PER ROUND $35.42 $35.21 $32.86 $32.68 Revenues FY2017 Projected FY2017 Projected FY2017 Projected FY2017 Projected Total Golf Course Revenues $3,452,900 $2,865,400 $3,259,500 $2,705,900 Concessions Total from F & B Concession $91,800 $81,100 $91,800 $81,100 Total From Pro Shop Concession $30,700 $25,600 $30,700 $25,600 Total Gross to City $3,575,400 $2,972,100 $3,382,000 $2,812,600 Expenses Total City Operating Expenses 2,146,000 2,088,800 2,143,300 2,086,600 Net Income From Operations (Loss)$1,429,400 $883,300 $1,238,700 $726,000 Total Income (Incl. Non-operating)$1,454,800 $908,700 $1,264,100 $751,400 Total Debt/Other Charges $1,092,100 $1,046,200 $1,072,800 $1,030,200 Net Income or (Loss)$362,700 ($137,500)$191,300 ($278,800) National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 50 Option G Sensitivity Spreadsheets Palo Alto Golf Course Revenue / Expense - Option G (Reduced Rounds Sensitivity) FY2011 Actual FY2012 Projected FY2013 Projected FY2014 Projected FY2015 Projected FY2016 Projected FY2017 Projected FY2018 Projected FY2019 Projected FY2020 Projected FY2021 Projected Total Rounds 66,740 64,700 47,900 16,000 53,150 58,100 63,100 67,900 67,900 67,900 67,900 Golf Course Revenues Green Fees (Incl. Cards) $2,016,537 $1,960,100 $1,445,100 $544,300 $1,810,100 $2,013,600 $2,221,900 $2,424,700 $2,448,900 $2,473,400 $2,498,200 Cart Fees 302,799 293,500 173,900 72,600 243,600 268,900 295,000 320,600 323,800 327,000 330,300 Driving Range 343,911 333,400 197,500 82,400 276,600 305,400 335,000 364,100 367,700 371,400 375,100 Tournament / League Fees 2,196 2,100 1,600 500 1,700 1,900 2,100 2,200 2,200 2,200 2,200 Other 11,813 11,500 6,800 2,800 9,400 10,300 11,400 12,300 12,500 12,500 12,800 Total Golf Course Revenues $2,677,256 $2,600,600 $1,824,900 $702,600 $2,341,400 $2,600,100 $2,865,400 $3,123,900 $3,155,100 $3,186,500 $3,218,600 Concession Payments Food and Beverage Concession Variable Portion $55,076 $53,400 $31,600 $13,200 $44,300 $48,900 $53,700 $58,300 $58,900 $59,500 $60,100 Utility Payment $25,920 $25,900 $26,400 $26,400 $26,900 $26,900 $27,400 $27,400 $27,900 $27,900 $28,500 Total from F & B Concession $80,996 $79,300 $58,000 $39,600 $71,200 $75,800 $81,100 $85,700 $86,800 $87,400 $88,600 Pro Shop Lease Merchandise (4%) $26,536 $25,700 $15,200 $6,400 $21,100 $23,100 $25,600 $27,500 $28,100 $28,100 $28,600 Total From Pro Shop Concession $26,536 $25,700 $15,200 $6,400 $21,100 $23,100 $25,600 $27,500 $28,100 $28,100 $28,600 Total Gross to City $2,784,788 $2,705,600 $1,898,100 $748,600 $2,433,700 $2,699,000 $2,972,100 $3,237,100 $3,270,000 $3,302,000 $3,335,800 Operating Expenses FY2011 Actual FY2012 Projected FY2013 Projected FY2014 Projected FY2015 Projected FY2016 Projected FY2017 Projected FY2018 Projected FY2019 Projected FY2020 Projected FY2021 Projected Salaries & Benefits $259,455 $139,000 $145,300 $151,800 $158,600 $165,700 $173,200 $181,000 $189,100 $197,600 $206,500 Range Fees 130,152 126,700 75,100 31,300 105,100 116,100 127,300 138,400 139,700 141,100 142,500 Cart Fees 117,529 117,400 69,600 29,000 97,400 107,600 118,000 128,200 129,500 130,800 132,100 Club Fees 5,576 5,700 4,600 1,700 5,700 5,800 5,900 6,000 6,100 6,200 6,300 Fixed Lozares Management Fee 345,333 345,300 259,000 86,300 345,300 345,300 345,300 345,300 345,300 345,300 345,300 Merchant Fees Reimbursement 36,211 36,400 25,500 9,800 32,800 36,400 40,100 43,700 44,200 44,600 45,100 Contract Maintenance 475,000 750,000 562,500 206,300 825,000 837,400 850,000 862,800 875,700 888,800 902,100 Repairs & maintenance 21,943 22,300 17,800 6,700 22,300 22,600 22,900 23,200 23,500 23,900 24,300 Advertising & Publish 10,765 10,900 8,700 45,000 30,000 17,000 17,300 17,600 17,900 18,200 18,500 Supplies and Materials 44,417 45,100 36,100 13,500 45,100 45,800 46,500 47,200 47,900 48,600 49,300 National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 51 Palo Alto Golf Course Revenue / Expense - Option G (Reduced Rounds Sensitivity) FY2011 Actual FY2012 Projected FY2013 Projected FY2014 Projected FY2015 Projected FY2016 Projected FY2017 Projected FY2018 Projected FY2019 Projected FY2020 Projected FY2021 Projected Water Expense 361,870 246,000 250,900 133,000 183,000 188,500 192,300 201,000 210,000 219,500 229,400 Other Direct Charges (Incl. Electric) 45,263 45,900 36,700 13,800 41,500 42,100 42,700 43,300 43,900 44,600 45,300 Indirect Charges 102,571 104,100 83,300 31,200 104,100 105,700 107,300 108,900 110,500 112,200 113,900 Total City Operating Expenses $1,956,085 $1,994,800 $1,575,100 $759,400 $1,995,900 $2,036,000 $2,088,800 $2,146,600 $2,183,300 $2,221,400 $2,260,600 Net Income From Operations (Loss)$828,703 $710,800 $323,000 ($10,800)$437,800 $663,000 $883,300 $1,090,500 $1,086,700 $1,080,600 $1,075,200 Non-operating Income from Sale of Property 35,230 D/S Income $0 $29,900 $25,700 $25,700 $25,700 $25,800 $25,900 $25,900 $25,900 $0 $0 Total Non-operating $35,230 $29,900 $25,700 $25,700 $25,700 $25,800 $25,900 $25,900 $25,900 $0 $0 Total Income (Incl. Non-operating)$863,933 $740,700 $348,700 $14,900 $463,500 $688,800 $908,700 $1,116,400 $1,112,600 $1,080,600 $1,075,200 Debt Service $559,539 $499,000 $428,200 $429,000 $428,200 $430,800 $423,200 $432,300 $431,200 $0 $0 Payment to General Fund $94,849 $94,800 $0 $0 $0 $0 $0 $0 $0 $0 $0 New Debt Service $0 $0 $0 $0 $351,300 $351,300 $351,300 $351,300 $351,300 $351,300 $351,300 Operating & Capital Reserve $0 $0 $0 $0 $181,000 $201,400 $222,200 $242,500 $244,900 $247,300 $249,800 Cost Plan Charges $41,455 $42,700 $44,000 $45,300 $46,700 $48,100 $49,500 $51,000 $52,500 $54,100 $55,700 Total Debt / Other Charges $695,843 $636,500 $472,200 $474,300 $1,007,200 $1,031,600 $1,046,200 $1,077,100 $1,079,900 $652,700 $656,800 Net Income or (Loss)$168,090 $104,200 ($123,500)($459,400)($543,700)($342,800)($137,500)$39,300 $32,700 $427,900 $418,400 NOTE: Option G would likely include additional revenue from soccer fields of approximately $78,000 per field per year ($234,000 for 3 fields). National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 52 Palo Alto Golf Course Revenue / Expense - Option G (Reduced Fees Sensitivity) FY2011 Actual FY2012 Projected FY2013 Projected FY2014 Projected FY2015 Projected FY2016 Projected FY2017 Projected FY2018 Projected FY2019 Projected FY2020 Projected FY2021 Projected Total Rounds 66,740 64,700 47,900 16,000 67,900 71,800 75,700 75,700 75,700 75,700 75,700 Golf Course Revenues Green Fees (Incl. Cards) $2,016,537 $1,960,100 $1,445,100 $503,800 $2,172,600 $2,329,500 $2,487,500 $2,512,400 $2,537,500 $2,562,900 $2,588,500 Cart Fees 302,799 293,500 173,900 72,600 311,100 332,300 353,900 357,400 361,000 364,600 368,200 Driving Range 343,911 333,400 197,500 82,400 353,400 377,400 401,900 405,900 410,000 414,100 418,200 Tournament / League Fees 2,196 2,100 1,600 500 2,200 2,400 2,500 2,500 2,500 2,500 2,500 Other 11,813 11,500 6,800 2,800 12,000 12,700 13,700 13,700 13,900 13,900 14,200 Total Golf Course Revenues $2,677,256 $2,600,600 $1,824,900 $662,100 $2,851,300 $3,054,300 $3,259,500 $3,291,900 $3,324,900 $3,358,000 $3,391,600 Concession Payments Food and Beverage Concession Variable Portion $55,076 $53,400 $31,600 $13,200 $56,600 $60,400 $64,400 $65,000 $65,700 $66,300 $67,000 Utility Payment $25,920 $25,900 $26,400 $26,400 $26,900 $26,900 $27,400 $27,400 $27,900 $27,900 $28,500 Total from F & B Concession $80,996 $79,300 $58,000 $39,600 $83,500 $87,300 $91,800 $92,400 $93,600 $94,200 $95,500 Pro Shop Lease Merchandise (4%) $26,536 $25,700 $15,200 $6,400 $27,000 $28,500 $30,700 $30,700 $31,300 $31,300 $31,900 Total From Pro Shop Concession $26,536 $25,700 $15,200 $6,400 $27,000 $28,500 $30,700 $30,700 $31,300 $31,300 $31,900 Total Gross to City $2,784,788 $2,705,600 $1,898,100 $708,100 $2,961,800 $3,170,100 $3,382,000 $3,415,000 $3,449,800 $3,483,500 $3,519,000 Operating Expenses FY2011 Actual FY2012 Projected FY2013 Projected FY2014 Projected FY2015 Projected FY2016 Projected FY2017 Projected FY2018 Projected FY2019 Projected FY2020 Projected FY2021 Projected Salaries & Benefits $259,455 $139,000 $145,300 $151,800 $158,600 $165,700 $173,200 $181,000 $189,100 $197,600 $206,500 Range Fees 130,152 126,700 75,100 31,300 134,300 143,400 152,700 154,200 155,800 157,400 158,900 Cart Fees 117,529 117,400 69,600 29,000 124,400 132,900 141,600 143,000 144,400 145,800 147,300 Club Fees 5,576 5,700 4,600 1,700 5,700 5,800 5,900 6,000 6,100 6,200 6,300 Fixed Lozares Management Fee 345,333 345,300 259,000 86,300 345,300 345,300 345,300 345,300 345,300 345,300 345,300 Merchant Fees Reimbursement 36,211 36,400 25,500 9,300 39,900 42,800 45,600 46,100 46,500 47,000 47,500 Contract Maintenance 475,000 750,000 562,500 206,300 825,000 837,400 850,000 862,800 875,700 888,800 902,100 Repairs & maintenance 21,943 22,300 17,800 6,700 22,300 22,600 22,900 23,200 23,500 23,900 24,300 Advertising & Publish 10,765 10,900 8,700 45,000 30,000 17,000 17,300 17,600 17,900 18,200 18,500 Supplies and Materials 44,417 45,100 36,100 13,500 45,100 45,800 46,500 47,200 47,900 48,600 49,300 National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 53 Palo Alto Golf Course Revenue / Expense - Option G (Reduced Fees Sensitivity) FY2011 Actual FY2012 Projected FY2013 Projected FY2014 Projected FY2015 Projected FY2016 Projected FY2017 Projected FY2018 Projected FY2019 Projected FY2020 Projected FY2021 Projected Water Expense 361,870 246,000 250,900 133,000 183,000 188,500 192,300 201,000 210,000 219,500 229,400 Other Direct Charges (Incl. Electric) 45,263 45,900 36,700 13,800 41,500 42,100 42,700 43,300 43,900 44,600 45,300 Indirect Charges 102,571 104,100 83,300 31,200 104,100 105,700 107,300 108,900 110,500 112,200 113,900 Total City Operating Expenses $1,956,085 $1,994,800 $1,575,100 $758,900 $2,059,200 $2,095,000 $2,143,300 $2,179,600 $2,216,600 $2,255,100 $2,294,600 Net Income From Operations (Loss)$828,703 $710,800 $323,000 ($50,800)$902,600 $1,075,100 $1,238,700 $1,235,400 $1,233,200 $1,228,400 $1,224,400 Non-operating Income from Sale of Property 35,230 D/S Income $0 $29,900 $25,700 $25,700 $25,700 $25,800 $25,900 $25,900 $25,900 $0 $0 Total Non-operating $35,230 $29,900 $25,700 $25,700 $25,700 $25,800 $25,900 $25,900 $25,900 $0 $0 Total Income (Incl. Non-operating)$863,933 $740,700 $348,700 ($25,100)$928,300 $1,100,900 $1,264,100 $1,261,300 $1,259,100 $1,228,400 $1,224,400 Debt Service $559,539 $499,000 $428,200 $429,000 $428,200 $430,800 $423,200 $432,300 $431,200 $0 $0 Payment to General Fund $94,849 $94,800 $0 $0 $0 $0 $0 $0 $0 $0 $0 New Debt Service $0 $0 $0 $0 $351,300 $351,300 $351,300 $351,300 $351,300 $351,300 $351,300 Operating & Capital Reserve $0 $0 $0 $0 $217,300 $233,000 $248,800 $251,200 $253,800 $256,300 $258,900 Cost Plan Charges $41,455 $42,700 $44,000 $45,300 $46,700 $48,100 $49,500 $51,000 $52,500 $54,100 $55,700 Total Debt / Other Charges $695,843 $636,500 $472,200 $474,300 $1,043,500 $1,063,200 $1,072,800 $1,085,800 $1,088,800 $661,700 $665,900 Net Income or (Loss)$168,090 $104,200 ($123,500)($499,400)($115,200)$37,700 $191,300 $175,500 $170,300 $566,700 $558,500 NOTE: Option G would likely include additional revenue from soccer fields estimated by City to be approximately $78,000 per field per year ($234,000 for 3 fields). National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 54 Palo Alto Golf Course Revenue / Expense - Option G (Reduced Rounds + Fees Sensitivity) FY2011 Actual FY2012 Projected FY2013 Projected FY2014 Projected FY2015 Projected FY2016 Projected FY2017 Projected FY2018 Projected FY2019 Projected FY2020 Projected FY2021 Projected Total Rounds 66,740 64,700 47,900 16,000 53,150 58,100 63,100 67,900 67,900 67,900 67,900 Golf Course Revenues Green Fees (Incl. Cards) $2,016,537 $1,960,100 $1,445,100 $503,800 $1,680,700 $1,869,300 $2,062,400 $2,250,400 $2,272,900 $2,295,600 $2,318,600 Cart Fees 302,799 293,500 173,900 72,600 243,600 268,900 295,000 320,600 323,800 327,000 330,300 Driving Range 343,911 333,400 197,500 82,400 276,600 305,400 335,000 364,100 367,700 371,400 375,100 Tournament / League Fees 2,196 2,100 1,600 500 1,700 1,900 2,100 2,200 2,200 2,200 2,200 Other 11,813 11,500 6,800 2,800 9,400 10,300 11,400 12,300 12,500 12,500 12,800 Total Golf Course Revenues $2,677,256 $2,600,600 $1,824,900 $662,100 $2,212,000 $2,455,800 $2,705,900 $2,949,600 $2,979,100 $3,008,700 $3,039,000 Concession Payments Food and Beverage Concession Variable Portion $55,076 $53,400 $31,600 $13,200 $44,300 $48,900 $53,700 $58,300 $58,900 $59,500 $60,100 Utility Payment $25,920 $25,900 $26,400 $26,400 $26,900 $26,900 $27,400 $27,400 $27,900 $27,900 $28,500 Total from F & B Concession $80,996 $79,300 $58,000 $39,600 $71,200 $75,800 $81,100 $85,700 $86,800 $87,400 $88,600 Pro Shop Lease Merchandise (4%) $26,536 $25,700 $15,200 $6,400 $21,100 $23,100 $25,600 $27,500 $28,100 $28,100 $28,600 Total From Pro Shop Concession $26,536 $25,700 $15,200 $6,400 $21,100 $23,100 $25,600 $27,500 $28,100 $28,100 $28,600 Total Gross to City $2,784,788 $2,705,600 $1,898,100 $708,100 $2,304,300 $2,554,700 $2,812,600 $3,062,800 $3,094,000 $3,124,200 $3,156,200 Operating Expenses FY2011 Actual FY2012 Projected FY2013 Projected FY2014 Projected FY2015 Projected FY2016 Projected FY2017 Projected FY2018 Projected FY2019 Projected FY2020 Projected FY2021 Projected Salaries & Benefits $259,455 $139,000 $145,300 $151,800 $158,600 $165,700 $173,200 $181,000 $189,100 $197,600 $206,500 Range Fees 130,152 126,700 75,100 31,300 105,100 116,100 127,300 138,400 139,700 141,100 142,500 Cart Fees 117,529 117,400 69,600 29,000 97,400 107,600 118,000 128,200 129,500 130,800 132,100 Club Fees 5,576 5,700 4,600 1,700 5,700 5,800 5,900 6,000 6,100 6,200 6,300 Fixed Lozares Management Fee 345,333 345,300 259,000 86,300 345,300 345,300 345,300 345,300 345,300 345,300 345,300 Merchant Fees Reimbursement 36,211 36,400 25,500 9,300 31,000 34,400 37,900 41,300 41,700 42,100 42,500 Contract Maintenance 475,000 750,000 562,500 206,300 825,000 837,400 850,000 862,800 875,700 888,800 902,100 Repairs & maintenance 21,943 22,300 17,800 6,700 22,300 22,600 22,900 23,200 23,500 23,900 24,300 Advertising & Publish 10,765 10,900 8,700 45,000 30,000 17,000 17,300 17,600 17,900 18,200 18,500 Supplies and Materials 44,417 45,100 36,100 13,500 45,100 45,800 46,500 47,200 47,900 48,600 49,300 National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 55 Palo Alto Golf Course Revenue / Expense - Option G (Reduced Rounds + Fees Sensitivity) FY2011 Actual FY2012 Projected FY2013 Projected FY2014 Projected FY2015 Projected FY2016 Projected FY2017 Projected FY2018 Projected FY2019 Projected FY2020 Projected FY2021 Projected Water Expense 361,870 246,000 250,900 133,000 183,000 188,500 192,300 201,000 210,000 219,500 229,400 Other Direct Charges (Incl. Electric) 45,263 45,900 36,700 13,800 41,500 42,100 42,700 43,300 43,900 44,600 45,300 Indirect Charges 102,571 104,100 83,300 31,200 104,100 105,700 107,300 108,900 110,500 112,200 113,900 Total City Operating Expenses $1,956,085 $1,994,800 $1,575,100 $758,900 $1,994,100 $2,034,000 $2,086,600 $2,144,200 $2,180,800 $2,218,900 $2,258,000 Net Income From Operations (Loss)$828,703 $710,800 $323,000 ($50,800)$310,200 $520,700 $726,000 $918,600 $913,200 $905,300 $898,200 Non-operating Income from Sale of Property 35,230 D/S Income $0 $29,900 $25,700 $25,700 $25,700 $25,800 $25,900 $25,900 $25,900 $0 $0 Total Non-operating $35,230 $29,900 $25,700 $25,700 $25,700 $25,800 $25,900 $25,900 $25,900 $0 $0 Total Income (Incl. Non-operating)$863,933 $740,700 $348,700 ($25,100)$335,900 $546,500 $751,400 $944,500 $939,100 $905,300 $898,200 Debt Service $559,539 $499,000 $428,200 $429,000 $428,200 $430,800 $423,200 $432,300 $431,200 $0 $0 Payment to General Fund $94,849 $94,800 $0 $0 $0 $0 $0 $0 $0 $0 $0 New Debt Service $0 $0 $0 $0 $351,300 $351,300 $351,300 $351,300 $351,300 $351,300 $351,300 Operating & Capital Reserve $0 $0 $0 $0 $168,100 $186,900 $206,200 $225,000 $227,300 $229,600 $231,900 Cost Plan Charges $41,455 $42,700 $44,000 $45,300 $46,700 $48,100 $49,500 $51,000 $52,500 $54,100 $55,700 Total Debt / Other Charges $695,843 $636,500 $472,200 $474,300 $994,300 $1,017,100 $1,030,200 $1,059,600 $1,062,300 $635,000 $638,900 Net Income or (Loss)$168,090 $104,200 ($123,500)($499,400)($658,400)($470,600)($278,800)($115,100)($123,200)$270,300 $259,300 NOTE: Option G would likely include additional revenue from soccer fields estimated by City at approximately $78,000 per field per year ($234,000 for 3 fields). National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 56 Other Issues and Considerations MARKET POSITION / RE-BRANDING OPPORTUNITY NGF Consulting has reviewed the image and brand recommendations made to the City as part of the expanded scope of services to address long range considerations. We conclude that closer integration of the golf course to the Palo Alto Baylands Preserve, “The Baylands”, should positively affect the City’s efforts to brand this area as a destination for Palo Alto residents and visitors alike. Celebrated as an open space and nature preserve area, the Baylands represents a rich and positive locale within Palo Alto and the Silicon Valley Region and will be enhanced with an improved and re-branded golf product. Currently, Palo Alto Municipal Golf Course effectively lacks a brand image, and the facility is very closely associated with the long-time golf concessionaire – so much so that the website address for the golf course is bradlozaresgolfshop.com, and recorded phone messages mention only the golf shop and not the golf course. We believe that a name change to “Baylands Golf Club at Palo Alto” represents a positive move that will have the effect of repositioning the golf course, distancing it from a “muni” layout. Additionally, it will signal a transformation from an older, “worn down” layout to one that has renewed excitement and positive change. The recommendation to retain “Palo Alto” as part of the course image and brand is a good way to connect with the existing name, as well as the City itself. Use of “Golf Club” in lieu of “Golf Course” is an additional signal that the golf experience is not only something new, but at a higher quality. The marketing theme “Public only in price, access and pride”is an excellent message to remind the customer that the golf facility remains accessible, open to the public and priced to provide one of the better golfing values in the Bay Area. This message also reinforces the transformation, ideally a win-win for the golf consumer to receive high quality at a “municipal” price point. Sample magazine ads provided as part of the Marketing and Theme recommendations hit on important concepts, including: Silicon Valley Location Tradition – The design legacy of Billy Bell The Transformation (i.e., the changes) The “Green” Environmental Commitment of the Facility Our belief is that proper implementation (adequate budgets, quality control and proper media placement) of the program will have a dramatic effect on driving new business to the “new” golf facility. Equally important will be the affect that these messages and the new brand will have on existing customers, and residents of Palo Alto and its neighboring communities who currently play golf elsewhere. In essence, the program for re-branding, introducing a new image and theme, and the marketing program, has the potential to have a very positive affect on rounds and associated revenues. National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 57 A commitment on the City’s part to becoming certified with Audubon international as a “Sanctuary Golf Facility” is an integral part of the ability to market the course as a “green” aware and operated golf facility. This goal should be undertaken regardless of which reconfiguration option is opted by the City and should be workable given the operation and/or marketing budgets afforded. (Note: Beginning this process now, prior to any reconfiguration work, will help guide the reconfiguration work and will also establish a greater degree of improvement by which to attain the Audubon status for the facility). Plan Option A poses the greatest challenge to be consistent with the image, brand and marketing changes recommended because it does not go as deep into the many areas of the course in terms of new features and reconstructed areas. However, the fact that Plan Option A will dramatically reduce turf through the course-wide work to create native areas and new “Baylands” themed areas should be an adequately appreciated change. Plan Options D, F and G will have no issues aligning with any of the themes and messages recommended. With emphasis on a quality, outstanding golf facility, the City may be able to realize what we have referred to as a “destination” public golf experience. In the Bay area we would point to such courses as Pasatiempo in Santa Cruz and Harding Park in San Francisco as meeting this definition. These two courses are good examples of courses that have attained a reputation through the following attributes: Legacy of the original design Transformation from marginal to excellent conditions Commitment by the municipal owners to reinvest in the assets Quality rebuilding efforts Good marketing of the finished courses and facilities While both of the above examples are classic era designs (Pasatiempo by Alister MacKenzie, and Harding Park by Willie Watson) it is still appropriate to reference their successes relative to what Palo Alto Golf Course could attain. Whether undertaken under one, larger reinvestment project, or carried out over time, the potential transformation of Palo Alto Golf Course is bolstered by a number of factors inherent in the facility: A design legacy that can be leveraged — William P. and William F. Bell, the former responsible for designs such as Stanford, Riviera and Bel-Air A location that sits at the heart of Silicon Valley A seaside setting that has greater potential to take advantage of its natural landscape — the Baylands environment, Bay and adjoining Sanfrancisquito Creek A population base that is robust for golf rounds by non-residents A location that is in one of the top tourist areas in the nation Obviously, undertaking more intensive reconfiguration (such as with Plan G) will transform more of the existing course and is likely to meet this goal on a stronger basis. So, too, may investing in more of the alternate, optional improvements, including many of the long range improvements before the City for consideration. National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 58 ECONOMICS OF POTENTIAL LONG-TERM / ADDITIONAL IMPROVEMENTS Forrest Richardson has proposed that the City study the feasibility of certain facility improvements that are in addition to the base improvements recommended within Reconfiguration Options A, D, F, and G (please see Appendix E for summary table of potential improvements and estimated costs). Though NGF believes that many of these improvements would improve the overall quality of the golfer (and non-golf customer) experience, as well as the image of the facility in the eyes of area golfers, it is not practical to assign incremental rounds played and revenue dollars to many of these improvements (e.g., exterior and entry upgrades, signage/parking, rebuilding practice greens, “alternate” golf course improvements, designated youth area). Practically, these improvements, to varying degrees individually and certainly as a sum of their parts, are likely to draw more patrons overall, keep them on-site longer, and increase their propensity to spend while at the golf course. We have confined our break-even analysis to several potential improvements that tie more directly to revenue: (1) The cart storage building; (2) Expanded meeting space; and (3) Range Performance Center. Cart Storage Building At just $4.54 per round in FY 2011, the average gross cart fee revenue per round at Palo Alto Golf Course significantly trails the average of its chief competitive set (see ERA 2008 report for City). While the low cart utilization is partially a function of the “walkability” of the golf course, ridership and revenues have also likely been constrained by the very limited cart storage. Palo Alto GC has only 46 carts available, some of which are older gasoline powered carts stored in open storage outside the clubhouse (fewer than 35 carts can be stored below the clubhouse). A more typical inventory for most regulation length 18-hole golf courses is ±70 carts. We are told that for larger tournaments, additional carts must be leased and brought in from off-site. In summary, NGF believes it is likely that the limited cart inventory and storage space available has constrained ridership and may have actually negatively affected demand for daily fee and, especially, tournament play on occasion. As part of Forrest Richardson’s overall capital improvement plan for Palo Alto GC, he has included construction of a new cart storage building at an estimated cost of $440,000. In the table below, we illustrate the number of years it will take for the City to break even on this investment, assuming different levels of incremental gross cart rental revenue per round, the current rent percentage of 60%, and stabilized rounds activity under Options D and F – 73,300 rounds. Of course, as noted, it is possible that having additional carts will have a positive effect on rounds played as well, but for purposes of conservatism we are illustrating only increases in cart revenue per round. We also assume that all expenses associated with the cart lease and maintenance will remain the responsibility of the vendor, and that there will be no incremental City operating costs associated with the new building. Palo Alto Golf Course Break-Even Analysis for Cart Storage Building Average Gross Cart Revenue Per Round Increase $0.50 $1.00 $1.50 $2.00 $2.50 Incremental Gross Revenue* $36,650 $73,300 $109,950 $146,600 $183,250 Incremental Revenue to City* $21,990 $43,980 $65,970 $87,960 $109,950 Years to B/E* 20.0 10.0 6.7 5.0 4.0 *Assumes $440,000 estimated cost and stabilized rounds played of 73,300 from Options D,F National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 59 Expanded Meeting Space The existing restaurant at Palo Alto GC has limited meeting space that has significantly constrained meeting and banquet business at the facility. Not being able to accommodate larger events of ±250 people precludes the facility from competing for the most lucrative, high margin food & beverage business. As such, expanding the meeting/banquet space is another component of the long range improvement plan prepared for the City by Mr. Richardson. Based on the estimated cost provided of $1.7 million, and assuming the City incurs all of the cost of the improvement, the annual debt service on a 20-year note at 3.5% would be $120,000 (rounded). NGF has calculated that the incremental annual gross food & beverage revenue necessary to generate $120,000 in additional rents to the City to meet the annual debt service is more than $1.71 million. This calculation is based on the current rent percentage of 7%. In its 2008 study, ERA noted: “Based on the experience of similar golf course oriented banquet facilities and the demographics of the area, expanding the clubhouse to accommodate special events with up to 250 attendees would add $600,000 to $700,000 in annual special event revenue. This rental income would justify about one-half of the cost of the improvements.” NGF concurs that achieving this level of incremental gross revenue would likely be an achievable goal, but with updated cost estimates, this level of revenue would justify only about 40% of the investment cost. Therefore, the balance of the City investment in the expanded facility would have to be justified through the incremental rounds and associated revenues attributable directly to the expanded meeting facilities. Based on current and projected average green + cart (City share) fee revenue per round, it would take 2,000 to 3,000 of these rounds to help fund the expanded facilities. Of course, the equation would change markedly if gross revenues accrued to the City under an alternate operating structure. Range Performance Center In the table below, we provide a similar break-even analysis to the one for the cart storage building. Mr. Richardson’s cost estimate for the range performance center, plus the additional 6- bay range expansion (we assume both are undertaken together), is $600,000. In the table below, we illustrate the number of years it will take for the City to break even on this investment, assuming different levels of incremental gross driving range revenue per round (gross per round was $5.15 in FY 11), the rent percentage of 62%, and stabilized rounds activity under Options D and F – 73,300 rounds. Of course, it cannot be determined what percentage of range activity is a function of number of bays as opposed to rounds played, so we have chosen to do a sensitivity analysis by increasing average revenue per round rather than per tee station. Another factor driving this methodology is that the performance center bays will be used for teaching, and will likely have less utilization than the already existing bays. We also assume that all incremental expenses associated with the expanded range remain the responsibility of the concessionaire, and that there will be no incremental City operating costs associated with the new building. Finally, we assume that the City receives no lesson revenue. National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 60 Palo Alto Golf Course – B/E Analysis for Range Performance Center + 6-Bay Expansion Average Gross Range Revenue Per Round Increase $0.50 $0.75 $1.00 $1.25 $1.50 Incremental Gross Revenue* $36,650 $54,975 $73,300 $91,625 $109,950 Incremental Revenue to City* $22,723 $34,085 $45,446 $56,808 $68,169 Years to B/E* 26.4 17.6 13.2 10.6 8.8 *Assumes $600,000 estimated cost and stabilized rounds played of 73,300 from Options D,F MANAGEMENT STRUCTURE NGF was told that some City staff would like to further explore - via issuance of an RFP in advance of the Pro Shop and Maintenance agreements expiring in April, 2013 - the implications of changing the operating structure at Palo Alto Golf Course to a management contract. We have been asked to offer our opinion as to whether this type of structure would be more effective, or produce higher net operating income to the City, than the current “hybrid” structure that involves both a management fee and a concession on the golf operations side, privatized maintenance, and a separate food & beverage concession. As Economic Research Associates (ERA) noted in their 2008 Operations Review of the Palo Alto Municipal Golf Course, the current agreement for golf operations evolved due to IRS regulations related to the tax-exempt financing utilized for the late 1990s renovation of the golf course. Specifically, at least 50% of the compensation within a management agreement must be fixed fee in such a case. ERA, after doing the full operations analysis, concluded that the current pro shop deal was “slightly favorable” to the concessionaire. After running cash flow models under various operating scenarios, ERA concluded that City Net Income was maximized with private maintenance (subsequently put in place) and “market rate” concession terms. However, they also noted that “market rate”, which involved lower concession rents to the City and an elimination of the management fee, was not permissible by the IRS without a restructuring of the current debt. ERA concluded that, among the operating models that were permissible within the current debt framework, the structure that is now in place at Palo Alto Golf Course – no change in contract terms, but with private maintenance – produced the highest City Net Income. A full-service Management Agreement produced the second highest City Net Income. Without doing a full operations review, NGF does not have sufficient information to critically evaluate ERA’s analysis or to identify the operating structure that would be the best fit for Palo Alto GC. While there are a number of advantages to the full service management contract structure, it is also true that “no one size fits all”. There are many factors and variables to consider when evaluating options, and it would be unfair to both the City and the current vendors for a consultant to make a recommendation regarding the optimal structure without being retained to do a full facility analysis. Carefully evaluating the value proposition that each of the current vendors brings to the table would be just one component of such an analysis. For instance, the golfer survey that ERA implemented as part of their 2008 study showed that Brad Lozares was rated quite high by golfers, indicating considerable goodwill and “equity” built up in the golf shop. Similarly, NGF has been told of improved maintenance conditions (as well as considerable cost savings) since ValleyCrest was brought on. National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 61 Having said that, we do feel confident recommending that the City retain the current structure at least through the completion of the renovation project.However, delaying consideration of a fundamental change in operating structure should not preclude modifying terms. For instance, the City and the golf vendor may come to an agreement resulting in lowering the management fee to reflect reduced responsibilities and concession revenues during renovation (especially under Option G), while still adhering to IRS guidelines.Not only will the project substantially disrupt business, but significant unknowns include the timing of the project and how the newly improved facility will cash flow after being brought back to market and “re-branded”. Also, the food & beverage contract doesn’t expire until 2018, so some of the advantages of the single operator management structure may be lessened unless an early termination to the agreement can be successfully negotiated with the current vendor. Finally, negotiating a new agreement during construction, when proposers themselves will not have full information about how the improved facility will cash flow, may result in the City not entering into the best deal possible. NGF believes that these are just a few of the important variables that make issuing an RFP at this stage less than optimal. We recommend that the City wait until after renovation is completed and the improved facility has been up and running for a year or more before considering a substantive change in structure. This strategy will provide additional information that will put the City in a better position to make an informed decision regarding operating structure (for instance, the City may find that the improved “Baylands Golf Club” has significant upside revenue potential, thus making it relatively more attractive to control all revenues under the management contract structure). LONG RANGE CONCERNS Concerns raised through the public process of reviewing reconfiguration options have included the following long term implications: High salts present in the native soils Intrusion by geese and burrowing animals Potential for the adjacent airport to negatively affect the golf experience In essence, the question raised is: “Can the Palo Alto Golf Course be expected to become a significantly better golf experience given these issues?” NGF Consulting relies on the opinions of professionals associated with individual golf facilities to address certain questions. For example, in the case of the high salts we look to agronomists, the course superintendent and/or the golf course architect. In the case of animal intrusion, because these are often site specific, we look to nearby facilities to see how they have dealt with the issue. High Salts Soils high in salts are not uncommon to golf courses located along coastal waterways and oceans. In the case of Palo Alto the soils are not only affected by the location by San Francisco Bay, but by the poorly draining soil types. Additionally, the use of effluent (recycled) water, which typically has higher salt content, exacerbates the condition. While our work has not included agronomic evaluation, we have endeavored to understand the general situation by comparing outcomes we have observed at other golf operations. National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 62 “Links courses,” those layouts along the dunes formed coasts of the British Isles and similar locales around the world, are prone to salty soils. Yet, with their sandy soil basis, these sites support good turf because the salts are leached regularly downward by natural rains. This is the hallmark of links courses, and why their development on these natural, sandy soils were so appropriate. When soils are not sandy and porous, the build-up of salts becomes problematic. This is the case at Palo Alto Golf Course, where management over the years has been to periodically irrigate with fresh water, driving salts downward, and to add gypsum to the soils. Additionally, the most recent remodeling work added a cap of sand and better soil mix to several fairways, making them much easier to manage and support healthy turf. These best practices have resulted in reasonably healthy turf growth despite the salty soil conditions. According to staff, while salts are high, the turf has “learned” to adapt. There is a definite difference between fairways where the sand cap has been placed and areas where drainage is not as good and where older native soils are present. Also, Paspalum turf varieties have flourished at the golf course in a few areas. These areas appear to have much better success rates of healthy growth because the nature of Paspalum grass is to tolerate salts to a significantly higher degree. NGF Consulting posed the question of managing high salts to Forrest Richardson & Associates, specifically asking what additional measures would be afforded through the reconfiguration options to address this issue. The response summary is as follows: Management of existing sand capping and healthy turf rootzone material (the uppermost layers of rootzone) will be managed through the reconfiguration, replacing that material as “topsoil” to new fairway and turf areas; this cost is represented in the probable cost estimates presented to the City for reconfiguration options. New soils will be imported as possible within the budgets, potentially from the Stanford University Medical Center project(s); these additional costs (and revenue potential) have been accounted in probable cost estimates. Paspalum turfgrass will be used to sod all new areas of fairways, roughs and tees (Note: The specific variety is yet to be determined). The irrigation system will provide dual watering capabilities, able to deliver potable water to selected areas and a mix of effluent (higher salt counts) and fresh water; this capability allows flushing (leaching of salts downward) as is being done currently. Significantly improved drainage is afforded in each reconfiguration option, helping to prevent build-up of salts by quicker transportation of surface water away from turf areas and the soil rootzone, and thereby reducing the build-up of salts that occurs when water is allowed to stand and slowly seep into the rootzone. These are prudent measures that are common among golf course sites with high salts present in the soil. Additionally, we understand that the City has a goal to reduce salt counts within its effluent water system, a goal that is not necessarily aimed at improving conditions at the golf course, but will have a definite value to City’s golf operation asset. While the success rate of overall condition improvement cannot be guaranteed, we can look at comparable operations where high salts are effectively managed. There are numerous examples of this throughout California, including the Bay Area. California examples include National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 63 Monarch Bay (San Leandro), Las Positas (Livermore), Metropolitan (Oakland), Olivas Links and Buenaventura (Ventura), and Irvine (Shady Canyon Club). Many courses with salt issues are turning to Paspalum turfgrass as an answer. Some of the example courses cited have moved to 100% Paspalum grass. NGF Consulting notes that this trend is widespread in Florida, the Caribbean, Mexico, South Texas, and Hawaii. In Hawaii, for example, Paspalum varieties have literally transformed the golf landscape from a struggling Bermudagrass region to one that now predominantly uses Paspalum in order to overcome high salts from water, soils and the proximity to the ocean. Even in Monterey we are seeing Paspalum use. At the Monterey Peninsula Club, for example, some areas located on the shore that were never in good condition, have been completely re-planted with Paspalum and are now in excellent condition. Our conclusion is that Palo Alto can enjoy a good success over the long term at the existing golf course site. Managing salts will have a good result, not only through good maintenance practices, but in combination with the reconfiguration work, which should make the City’s efforts to manage salts more productive, less costly and, ultimately, more impacting to a positive golf experience. Our caution is that the plan options (A, D, F and G) each have an associated result that is specific to the investment. Plan A, for example, addresses only a minority of the course turf areas (drainage, rootzone, topsoil management, irrigation, etc.) and will therefore not produce positive results across the full golf course. Plan G, at the other end of the spectrum, resolves virtually all areas. Animal Intrusion Managing Canadian Geese infestation is often dependent on regulations and restriction placed on locales. Our advice to the City is to study available mitigation measures and to carefully note the measures taken by neighboring courses. Geese populations have been successfully managed through the following measures: Trained dogs, such as border collies Reducing standing water and open water (ponds, lakes, swamps) Increasing habitat surrounding the golf course that will appeal to geese populations Implementing noise, reflective or other repellants Sterilization agents to stop generational return of geese to the golf course areas Among the most successful operations in Northern California are the courses of the Monterey Peninsula, notably Pebble Beach Companies and the private clubs in the area. With few exceptions, these operators have used trained dogs to manage geese away from their turf areas. An on-site dog specifically trained to manage geese populations remains the most efficient measure to rid geese infestation from golf courses in the U.S. Not only is this method humane, but it has the benefit of a lower cost than many other measures, and is less interruptive to the golf experience. We understand there is added complexity relative to the adjacent airport operation and the requirements associated with making sure that geese are not diverted to the airport, but away from both the golf course and the airport. For this reason, we recommend that the City take a look at jointly working out a plan for both the golf and airport needs. National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 64 With regard to the ground squirrel infestation, we understand that this is being met with ongoing mitigation efforts that are allowed under state guidelines. Also, the increase of naturalized areas afforded by all reconfiguration options will help drive habitat away from turf and in-play areas of the golf course. Airport Effects Many golf facilities are located immediately adjacent to airports, and yet enjoy a good reputation and high quality of golfing experience. We see no undue negative associated with the relatively small private plane airport, especially given that the flight paths do not directly overtop the golf course itself. Moreover, Silicon Valley appears to be utilizing the airport for corporate flights in favor of the larger regional airports that pose delays and complexities due to their scheduled, commercial flight business. This fact may actually prove beneficial to the golf operation should the golf course and its facilities be elevated a “destination” level of quality and reputation. The result with nominal airport use is that more visitors to Palo Alto will know about the golf course and be able to get a firsthand view of its offerings. Summary Based on experience and input from Forrest Richardson, NGF Consulting believes that long- term mitigation of the concerns of this site is workable and worth the premiums required for maintenance and management. In many cases, golf courses are located on degraded land because that land cannot be used for other purposes. We suspect this is the case in Palo Alto and would find it difficult to justify alternate solutions to the renovations that might be considered: (a) continued operation in a declined state; (b) abandonment of the asset in favor of a new location, given land values in the area; or (c) abandonment of the recreation amenity altogether, given its high use and the financial forecasts presented. POTENTIAL ECONOMIC DEVELOPMENT OF THE AIRPORT & GOLF “BAYLANDS GATEWAY” AREA The golf course “corner” and shared entry with the airport are considered a “gateway” to the Baylands Preserve areas. As such, this intersection has great potential to become more than just a golf clubhouse and airport with nominal retail offerings. According to the Community Services Department, forward and creative thinking has been aimed at the potential for this area to become a more user-friendly and service-oriented destination. Thus far, thinking has included whether the area could support a modest collection of cafes, retail shops, and perhaps even a hotel. While no formal plans have been commissioned, the City has discussed a general, long range approach to looking more in depth at this possibility. Such development, especially if it included a small hotel, would add natural demand drivers in immediate proximity to the golf course, thus resulting in increased rounds and revenues. As an example, a 130-room business hotel in a high demand locale may have as many as 28,000 room nights based on an average 60% occupancy rate. Using a multiplier of 1.3 guests per room, this equates to approximately 36,000 guests per year. Using a percentage of 10% golfers and assuming that the golf course could get even 20% of these guests to play, the resulting bump would be near 1,000 additional golfers per year. Also, these golfers would comprise non- residents paying the highest applicable rates, and traveling golfers typically exhibit less price National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 65 sensitivity and would be likely to also spend money on the practice range, pro shop, and/or restaurant. PRIVATE FUNDING POSSIBILITIES Of course, aside from receiving compensatory money from the San Francisquito Creek Joint Powers Authority, the City may have to grapple with how to fund additional money required if Reconfiguration Options D, F, or G is chosen, and/or if any work identified as “additional” or “alternate” in this report it undertaken. One of the mechanisms that would obviously be very preferable to the City is raising private money to fund some, or even all, of the needed money. Based on preliminary discussion held between Forrest Richardson, NGF, and the City, the private funding mechanism may take a combination of the following avenues that the City will have to explore further: Naming rights for some components of the facility (e.g., range performance center, certain holes, tee markers, designated youth area); this may be feasible do to the number of very wealthy individuals in Palo Alto, as well as the very strong corporate (especially high-tech/ internet-based) presence. Grants – for example, the First Tee, which is very active in the area. Lease-Back – some within the City have mentioned the possibility of finding a design/build entity that might be interested in undertaking all of the improvements, including soccer fields if Option F or G is chosen, and restructuring the financing package to get the entire project, including some or all optional master plan improvements, done at one time. In this case, the ±$3 million the City receives from the SFCJPA could be used toward paying off the old debt and a new arrangement put in place for the work to rebuild the golf course. The Stanford Soil Import is a wildcard in the equation. It could bring revenue into the equation, but likely not more than $500,000. This may provide a partial funding mechanism to help pay for some of the miscellaneous suggested work that will not have a revenue stream attached directly to it (entry experience, trails, signage, parking, etc.). National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 66 Appendices APPENDIX A – COMPARATIVE SUPPLY RATIOS – PALO ALTO GC & KEY MUNICIPAL COMPETITORS APPENDIX B – COMPARATIVE SCORING OF RECONFIGURATION OPTIONS APPENDIX C – WATER & POWER USE DISCUSSION & ASSUMPTIONS APPENDIX D – REVIEW OF PROBABLE COST ESTIMATES APPENDIX E – POTENTIAL LONG-TERM MASTER PLAN IMPROVEMENTS National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 67 APPENDIX A – COMPARATIVE SUPPLY RATIOS – PALO ALTO GC & KEY MUNICIPAL COMPETITORS NGF has presented a comparison of some key golf supply measures for Palo Alto GC and its key municipal competitors, with the 5-mile radius around each facility the basis for comparison. We note that all of the subject facilities, except for Santa Teresa, have very high household/supply ratios, which is one of the key factors that explains the very high rounds figures realized per 18 holes among municipal golf courses in this market. Also of note, in its 2009 publication “The Future of Public Golf in America,” NGF hypothesized that the best predictor of a public golf course’s success was the number of golfers per 18 holes within a 10-mile radius, with 4,000 identified as the key number for projected financial stability. As shown in the second table below, all of the subject courses (again with exception of Santa Teresa) exceed this number for the 5-mile market. Golf Facility Supply – 2011 (5-Mile Radius) 5-mile Rings Total No. of Golf Facilities Total No. of Golf Holes Households per 18 holes Households per 18 Hole Index (US=100) Palo Alto Golf Course 4 72 19,836 251 Poplar Creek Golf Course 5 81 17,942 227 San Jose Municipal Golf Course 6 90 31,377 398 Santa Clara Golf & Tennis Club 6 90 21,027 266 Santa Teresa 6 135 7,841 99 Shoreline Golf Links 4 72 24,206 307 Sunnyvale Golf Course 8 126 19,435 246 Source: National Golf Foundation Golfers per 18 Holes (5-Mile Radius) 5-mile Rings Golfing Households Est. No. of Golfers1 Total 18-H Equivalent Golfers per 18 holes Palo Alto Golf Course 14,206 21,309 4 5,327 Poplar Creek Golf Course 14,243 21,365 4.5 4,748 San Jose Municipal Golf Course 30,527 45,791 5 9,158 Santa Clara Golf & Tennis Club 17,855 26,783 5 5,357 Santa Teresa 12,250 18,375 7.5 2,450 Shoreline Golf Links 16,695 25,043 4 6,261 Sunnyvale Golf Course 24,118 36,177 7 5,168 Total U.S. “Threshold” for Successful Public Golf (10-mile Ring) 4,000 1 Golfing Households x 1.5 Source: National Golf Foundation National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 68 APPENDIX B – COMPARATIVE SCORING OF RECONFIGURATION OPTIONS As a useful tool in formulating pro forma projections, NGF has compared the Reconfiguration Options using a “scorecard approach” whereby attributes and benefits are assigned scores (1- 10). This method allows a side-by-side comparison, providing a way to review pluses and minuses associated with each option. We base our scoring on several factors, including the following: Details presented (plans, conceptual images, etc.) Public comments and historical use of the facility (rounds and use) NGF Market Analysis (local and regional trends and golf participation) Competition within the market area Details and other givens regarding the changes to take place (golf design consultant involved, how far along the proposed changes have been studied, budgets, etc.) Long term viability of the changes and market acceptance Known preferences of golfers relative to course conditioning, consistency, etc. Quality of the consultants involved In situations where golf facilities are proposed to be reconfigured, there are both subjective and objective considerations. Additionally, there is often difficulty in verifying to what degree proposed changes will be carried out. Fortunately in the case of the Palo Alto Golf Course, the City and SFCJPA have accommodated a very thorough process and detail so we are able to look at the plans, before and after images, and other documentation that quantify the changes associated with the options. Scoring is one factor considered in estimating potential changes in the financial performance of the golf facility. For example, a golf course with significantly more practice opportunities, especially when such use is in demand, will potentially bring in new use and associated revenue. In the case of a significant transformation of a golf course from an average or below average experience to one with new holes, views and overall landscape improvement, it is likely that an increase in use and/or revenue will be realized. And, where we can see potential to market the facility beyond the immediate area, it is possible to realize an added price-per-round for non-resident use. In this latter example we often cite the ability of golf courses such as Torrey Pines to adopt a green fee structure that holds low rates for residents of the area while charging market rates that are very high for players from out of state. In the case of Torrey Pines, the gap between resident rates and visitor rates are among the widest in the golf business. Though this type of gap will not be realistic for Palo Alto, we do expect that, depending on the reconfiguration option chose, non-residents will effectively be “subsidizing” to some degree a high quality, but still affordable, golf experience for city residents. The following ratings use a 1-10 scale where 1 is the lowest and 10 is the highest. This ranking includes some financial considerations, but is ancillary to the pro forma financial analysis for each option. The rankings here are used to form some of the forecasts within the pro forma analyses. Scoring is based on the base reconfiguration work for each option (i.e., less all optional/alternate work listed). A summary table of rankings is presented following the category descriptions. National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 69 The following are categories used to form the scoring: Yardage & Par –Accommodation of yardage (regulation length) for a course and par that will be viable and competitive within the market and region Interruption of Play During Reconfiguration – Ability of the plan to retain some holes (9-hole play) and practice during reconfiguration work Consistency of Bunkers & Hazards – Overall impact of the plan relative to bunker consistency, aesthetics and other hazards Consistency of Greens – Overall result of greens quality and consistency Drainage Improvement – Overall positive impact on drainage; eliminating wet conditions Irrigation Improvement – Overall positive impact on irrigation control, consistency and associated turf quality Pace-of-Play – Degree to which the plan accommodates positive pace-of-play and long range ability to manage for good pace Improved Visual Impact –Overall landscape enhancements (added naturalizes areas and visual impact) Improved Views – Accommodation of more views to the Bay and territorial vistas Improved Golf Experience Impact -Overall plan benefits to strategy, excitement of holes, variation of direction, orientation to wind, etc.) Competitiveness with Area Courses –Ability of the course to compete with courses in the immediate area Competitiveness with Regional Courses –Ability of the course to compete with courses in the region Likelihood for Destination Visits –Ability of the course to attract specific visits expressly to play the course Ability to Leverage “Green” Marketing –Consistency of the plan with a “green” environmental message (Baylands tie-in, more naturalized areas, natural landscape, etc.) Consistency with Long Range Planning –Integration of the plan with future planning (clubhouse, practice, etc.) Turf Reduction (irrigation) –Reduction of managed turf acreage for less water use and reduced pumping Turf Reduction (managed care) –Reduction of managed turf in relation to the ability to shift maintenance emphasis from out-of-play areas to golf features and areas more appreciated by the golfer National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 70 Comparative Scoring of Reconfiguration Options Option A Option D Option F Option G Yardage & Par 8 8 8 6 Interruption of Play during Reconfiguration 5 4 3 1 Consistency of Bunkers & Hazards 7 8 9 10 Consistency of Greens 3 5 6 8 Drainage Improvement 4 6 8 9 Irrigation Improvement 3 6 7 10 Pace-of-Play 5 10 7 7 Improved Visual Impact 4 6 7 8 Improved Views 2 7 7 8 Improved Golf Experience Impact 3 7 8 8 Competitiveness with Area Courses 5 8 8 8 Competitiveness with Regional Courses 2 6 7 8 Likelihood for Destination Visits 1 5 7 7 Ability to Leverage “Green” Marketing 5 7 8 9 Consistency with Long Range Planning 7 9 9 9 Turf Reduction (irrigation) 4 6 8 9 Turf Reduction (managed care) 4 7 8 9 National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 71 APPENDIX C – WATER & POWER USE DISCUSSION & ASSUMPTIONS NGF Consulting was not charged with a full water or power use analysis. However, forecasting costs associated with each reconfiguration option requires reasonable estimates on the affects of a more efficient irrigation system combined with less turf acreage. Our conclusions on water and power use are based on the following assumptions, derived from City Staff and the golf course architect/design team: Current irrigation (managed) turf acreage: 135 New irrigation areas efficiency over/above the existing system: +10% Current irrigation inefficiency due to leaks and breaks (loss): -5% Current power inefficiency: -10% New power efficiency realized with full course better watering times/durations: +15% Annual cost for irrigation repair due to age and condition: $30,000 Using the data and assumptions, NGF Consulting has developed the following forecast for water and power use differences with each reconfiguration option. Option A Total irrigated turf following reconfiguration: 96.5 acres Water use reduction based on new irrigated acreage: 28% Approximate area of reconfigured course with new irrigation system: 35 acres Percentage of irrigated Area with New Irrigation: 36% Water use reduction of new usage based on efficiencies of new system area: 3.6% (10% efficiency x 36% = 3.6%) Water efficiency of new usage gained due to fewer leaks/breaks: 2% (5% efficiency x 36% = 2%) Power efficiency realized with better watering times/duration: +5% Conclusions Reduced Water Cost Est. (effluent) $ - 0 - Reduced Water Cost Est. (potable) $72,800 (28% x $260,000) Reduced Water Cost Est. (potable efficiencies) $5,645 ([3.6% + 2%] x $100,800) Reduced Power Cost Est. (efficiencies realized) $1,200(5% x $24,000) Total Est. Reduction in Water & Power Cost $79,645 / annual Option D Total irrigated turf following reconfiguration: 92 acres Water use reduction based on new irrigated acreage: 32% Approximate area of reconfigured course with new irrigation system: 40 acres Percentage of irrigated Area with New Irrigation: 43% Water use reduction of new usage based on efficiencies of new system area: 4.3% (10% efficiency x 43% = 4.3%) Water efficiency of new usage gained due to fewer leaks/breaks: 2% (5% efficiency x 43% = 2%) National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 72 Power efficiency realized with better watering times/duration: +10% Conclusions Reduced Water Cost Est. (effluent) $- 0 - Reduced Water Cost Est. (potable) $83,200 (32% x $260,000) Reduced Water Cost Est. (potable efficiencies) $7,258 ([4.3% + 2%] x $115,200) Reduced Power Cost Est. (efficiencies realized) $2,400 (10% x $24,000) Total Est. Reduction in Water & Power Cost $92,858 / annual Option F Total irrigated turf following reconfiguration: 91.5 acres Water use reduction based on new irrigated acreage: 32% Approximate area of reconfigured course with new irrigation system: 58 acres Percentage of irrigated Area with New Irrigation: 63% Water use reduction of new usage based on efficiencies of new system area: 6% (10% efficiency x 63% = 6.3%) Water efficiency of new usage gained due to fewer leaks/breaks: 3% (5% efficiency x 63% = 3%) Power efficiency realized with better watering times/duration: +12.5% Conclusions Reduced Water Cost Est. (effluent) $ - 0 - Reduced Water Cost Est. (potable) $83,200 (32% x $260,000) Reduced Water Cost Est. (potable efficiencies) $10,711 ([6.3% + 3%] x $115,200) Reduced Power Cost Est. (efficiencies realized)$ 3,000 (12.5% x $24,000) Total Est. Reduction in Water & Power Cost $96,911 / annual Option G Total irrigated turf following reconfiguration: 92 acres Water use reduction based on new irrigated acreage: 32% Approximate area of reconfigured course with new irrigation system: 92 acres Percentage of irrigated Area with New Irrigation: 100% Water use reduction of new usage based on efficiencies of new system area: 10% (10% efficiency x 100% = 10%) Water efficiency of new usage gained due to fewer leaks/breaks: 5% (5% efficiency x 100% = 5%) Power efficiency realized with better watering times/duration: +15% Conclusions Reduced Water Cost Est. (effluent) $ - 0 - Reduced Water Cost Est. (potable) $83,200 (32% x $260,000) Reduced Water Cost Est. (potable efficiencies) $23,040 ([15% + 5%] x $115,200) Reduced Power Cost Est. (efficiencies realized) $3,600 (15% x $24,000) Total Est. Reduction in Water & Power Cost $109,840 / annual National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 73 APPENDIX D – REVIEW OF PROBABLE COST ESTIMATES NGF Consulting has reviewed the probable cost estimates provided to the City for reconfiguration Options A, D, F, and G. In order to objectively evaluate proposed budgets we look for a baseline of comparison. The best resources are similar public sector golf course projects involving reconfiguration. All golf course projects are unique, as are the conditions of the site, construction costs, availability of construction materials (sand, proximity of sod growing, etc.), and terrain. Additionally, in a situation where the proposed modifications to the course are underway, as in this case, we look to other projects by the same golf course architect. The best comparisons are three projects by Forrest Richardson, ASGCA: Buenaventura Golf Course (City of Ventura, California) Peacock Gap Golf Course (San Rafael, California – privately owned) Olivas Links (City of Ventura, California) The Buenaventura project was undertaken to rebuild an existing 18-hole facility originally designed by William P. and William F. Bell. The scope was to largely retain hole corridors through existing mature trees, but to re-turf all of the golf course. The project involved approximately 88 acres of full re-turfing, greens rebuilding (19), new ponds (3) and complete rebuilding of all features (bunkers, tees and fairways). This project had a stated budget of $4.5 million which also included site work for a new maintenance area, a new maintenance building and improvements to the entry and parking areas. The work was completed in 2005 and was funded by the City of Ventura through a capital bond program. NGF was told that the golf course specific work totaled approximately $3.6 million and the market conditions at that time were very similar to current conditions. The Peacock Gap project was a complete re-build of an 18-hole golf course (also an original design of William F. Bell), associated re-routing work for safety reasons, a new pond, new drainage, full new irrigation system, and all new features including a new practice range. The total acreage involved was approximately 94 acres and included similar naturalized area development as has been proposed for Palo Alto. The project was carried out over two phases beginning in 2004 for a reported investment of $5.1 million. Of note is that topsoil management was very similar to that covered in the Palo Alto Probable Cost Estimates. The Olivas Links project is most similar to Palo Alto among these three examples. This course was originally designed by William P. and William F. Bell and also borders a river at its estuary termination point. The course was prone to flooding and had very poor soil conditions as a result of effluent irrigation and inherent salts by way of its seaside locale. Also a part of the capital bond program of the City of Ventura, this 2006-07 work was contracted at $5 million in terms of direct golf course improvements. These included full re-building using on-site soils. Paspalum grass was used for fairways, with Bentgrass on the greens. Our estimation of the timing of this work was that it fell during the most aggressive contracting time in the past 10-15 years. The work appears to have been publically bid with six qualified bids, each very close to the lowest bid at the $5 million point. The City spent additional funds to relocate and replace their maintenance facility over and above the golf course construction contract. Though there are variables that could affect cost, such as the ultimate timing of the project and a change in regional economic conditions, NGF’s general assessment given our exchanges with Forrest Richardson on this matter is that the probable cost estimates prepared for the City (Options A, D, F and G) appear to cover the scope of the work shown for the options, and are National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 74 conservative in approach. According to representatives of the Golf Course Builders Association of America (GCBAA) the Bay Area represents one of the most costly working locales in Northern California based on available labor, housing and the general cost of fuel, operations and logistics. We note that the architect, recognizing this reality, has included a significant degree of project management and contingency in estimates prepared for the City - important components that we often see omitted at this stage of planning. National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 75 APPENDIX E – POTENTIAL LONG-TERM MASTER PLAN IMPROVEMENTS The tables below summarize some of the long-term and/or optional improvements that have been presented by Forrest Richardson to the City of Palo Alto for consideration. Clubhouse Improvements Exterior Condition & Upgrades - Estimate: $250,000 Aesthetic improvement to facings, color, materials Replace, upgrade landscaping Expand Meeting Spaces - Estimate: $1,700,000 Current Space: 75 in one room + 70 on patio Expand main pavilion room to hold 200 Expand/open patio to hold 100 additional (300 total) Create outdoor wedding garden Reconfigure grill as potential restaurant space (60) Reconfigure bar as pub seating w/ patio for 60 addl. Expand/improve kitchen Expand/screen service yard Expand/open patio to hold 100 additional (300 total) Golf Shop Upgrades - Estimate: $100,000 Expand office/storage Free-up 1,000 s.f. retail space Create Cart Storage Building - Estimate: $440,000 Currently storage for 15 carts; balance kept outdoors and leased temporarily as needed for groups New building for 70 carts Arrival & Entry Improvements New Entry, Signage and Parking - Estimate: $400,000 New entry New signage Resurfaced parking w/ Landscaping & Lighting (expand to 300 spaces) New Entry, Signage and Parking - Estimate: $200,000 New trail connections (to Baylands, etc.) Bike racks, signage, etc. Practice Facility Improvements Range Performance Center - Estimate: $500,000 New building & hitting bays for Instruction Small meeting spaces and offices Range Expansion - Estimate: $100,000 (6) Additional hitting bays (adjusted netting to north) Rebuild Existing Practice Green - Estimate: $180,000 New green complex as short game area Create Designated Youth Area - Estimate: $200,000 Along Embarcadero (2 Acres) Range Performance Center - Estimate: $500,000 New building & hitting bays for Instruction Small meeting spaces and offices National Golf Foundation Consulting, Inc. – City of Palo Alto Report – 76 Other “Alternate” Improvements On-course Restroom Replacement - Estimate: $95,000 New structure and demo existing Replace Balance of Irrigation System (Varies w/ Plan Option)Complete new system & control Rebuild All Greens on Course (Varies w/ Plan Option)Rebuild all greens to USGA specs Resod all Fairways on Course (Varies w/ Plan Option)New and consistent turf variety throughout New Event Practice Green/Area - Estimate: $80,000 Separate event green and area (Plan D only) Sand Plate New Fairways (Varies w/ Plan Option)Sand cap to 6 in. 1    To:  City Council   From:  Parks and Recreation Commission  Date:  April 16, 2012  Title:  Palo Alto Golf Course Re‐configuration Resulting From the San Francisquito Flood  Control Project  On March 27th, 2012 the Palo Alto Parks and Recreation Commission (PAPRC) endorsed option  G for the renovation of the Palo Alto Municipal Golf Course (Golf Course) in conjunction with  the San Francisquito Creek Joint Powers Authority (SFCJPA) renovation of the levy adjoining the  Golf Course.  Below the PAPRC articulate the benefits and areas requiring special consideration  with option G:   This valuable recreation area is transformed into a magnificent layout integrating more  naturally with the Baylands.  It can be a destination “park” for golfers and other outdoor  enthusiasts with the opportunity over time to make the clubhouse and its environs a  true community center.     This design allows the City to reserve 10.5 acres suitable for multiple recreation and  park needs while maintaining a full “regulation” golf course appealing to golfers of all  ages and drawing golfers from a wide area.  The Commission recommends that an open  and inclusive process be undertaken to explore the full array of recreation needs for the  use of the 10.5 acres.   The current course is profitable and contributes positively to City revenues.   Assumptions and projections on estimated rounds played on the renovated course  indicate that this asset is highly likely to substantially increase revenue contribution to  the City after construction with option G contributing the highest revenue of all the  options. The new design with “wow‐factors” in many places will be a real draw for  golfers from an extended geographical area.    The full long‐term vision to complete transformation of the site – including clubhouse  architectural drawings, new parking and pedestrian flow and practice areas ‐ needs to  be presented to the Council now for future planning.        The above recommendation is tempered by the following facts:   Costs for option G are the highest of the choices ‐ exceeding $7 million.  Recently the  Blue Ribbon Infrastructure Committee completed work on expenditure priorities.  This  new project needs to be prioritized and fully funded from known sources.  In addition  there will be one‐year of course closure which will negatively impact stretched City  budgets. Lastly, the City should be cognizant of the disproportionate burden on golfers  2    to pay for a golf course design that sets aside 10.5 acres of land for other recreational  uses.    While there is a lot of ad‐hoc comment on the need for athletic fields there is no  documented urgent need for additional athletic field space at present. The City has  done a good job of expanding field space already.  Notable examples are the new  Stanford fields and the current construction on El Camino Park which will include a full  size turf field.  Further play on existing fields could be created by adding lights at lower  cost than additional fields.  Demographic and community trends need to be watched  closely to address future recreational needs.    The full benefit of the golf course renovation (for golfers and non‐golfers) cannot be  realized without additional significant changes to the buildings, parking and pedestrian  access, and practice area of the course.  Maximum revenue will likely be blunted for  tournament play and corporate outings/meetings by the current unappealing amenities.   There will be a jarring difference between the entry to the facility and the course itself.     Ideally, this would all be addressed as a total package on close construction timelines.   This project will have significant environmental impacts that will need to be evaluated  prior to development given the proximity to sensitive environmental areas and riparian  habitat.  E M B A R C A D E R O R O A D E M B A R C A D E R O R O A D E M B A R C A D E R O EMBARCADERO WAY GE N G R O A D 14 12 13 17 4 11 16 15 2 3 8 5 10 18 1 7 9 Driving Range 6 Legend Assessment Parcel Golf Hole GOLF COURSE CLUB HOUSE PARKING LOT MAINTENANCE FACILITY LAKE HISTORIC WATERS WETLANDS 0'150'300' Palo Alto Golf Course City of Palo Alto GIS This map is a product of the This document is a graphic representation only of best available sources. CITY O F PALO A L T O I N C O R P O R A T E D C ALIFO R N I A P a l o A l t o T h e C i t y o f A P R IL 1 6 1 8 94 The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2005 City of Palo Alto mraschk, 2005-05-24 09:29:48, GOLF COURSE AREAS (\\cc-maps\gis$\gis\admin\Personal\mraschk.mdb) Attachment B CMR:168:06 Page 1 of 10 TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: PLANNING AND COMMUNITY ENVIRONMENT DATE: MARCH 20, 2006 CMR: 168:06 SUBJECT: GOLF COURSE PRELIMINARY FEASIBILITY STUDY – REPORT TO COUNCIL IN RESPONSE TO COLLEAGUES MEMO ON GOLF COURSE REDESIGN OPTIONS TO INCLUDE SPORTS FIELDS AND RECOMMENDATIONS FOR FUTURE ACTION. REPORT IN BRIEF This preliminary feasibility study provides important information about adding playing fields at the golf course. The information will be useful in helping the City participate more effectively in exploring possible multi-use recreation/flood control options in the San Francisquito Creek Flood Control Study now underway. Several of the flood control options that will be evaluated in the study include modifications to the golf course; flood control solutions incorporating multi- use flood control/recreation facilities will be considered. If a feasible multi-use option is identified, public funds may be available to help offset the cost of a golf course or other recreation facilities that also serve a flood control purpose. The preliminary design studies indicate that there may be room to add up to two playing fields while retaining the existing championship golf course*. However, the costs resulting from the need to reconfigure as many as eight golf holes reduce the desirability of this option. The golf course site does not appear to be large enough to accommodate several playing fields as well as a public regulation/championship golf course, due to the special requirements of a public golf course. The golf course site would be large enough to accommodate a new, smaller non- championship golf course or golf practice facility as well as several sports playing fields. These types of golf facilities provide a different golfing experience and serve a different market segment than the existing championship golf course. The marketability of a smaller non- championship golf course and/or golf practice facility on the Palo Alto golf course site and the level of community support for such a change is unknown. The cost of a new smaller golf course/golf practice facility with 4 or 5 sports playing fields is estimated to be over eighteen million dollars. Private development scenarios that would pay all or most of the cost of a new smaller golf course and sports playing fields were not formally evaluated, but input was solicited from golf course developers and other real estate developers. *Championship course is used to describe a course with a length greater than 6000 yards from the forward (white) tees and a par between 70 – 72. It does not imply that the course would likely hold major championship tournaments Attachment D CMR:168:06 Page 2 of 10 RECOMMENDATION Staff recommends that the City Council: 1) Receive and file this report. 2) Participate in locating funding for the golf course/recreation component of the flood control project if the San Francisquito Creek Joint Power Authority/Army Corps of Engineers flood control study identifies feasible multiuse flood control/recreation options. BACKGROUND Responding to a March 7, 2005 memorandum from City Council members Burch, Kleinberg and Kishimoto, the City Council directed staff to conduct a preliminary feasibility review of possible redesign of the 18-hole championship municipal golf course with the goal of freeing up substantial acreage for sports fields. The objectives to be achieved by such a redesign are: creation of 20-40 acres of new playing field space; improvement of the golfing experience and provision of additional golfing amenities; expansion and enhancement of the natural habitat; and helping to address San Francisquito Creek flood control needs. The Council was also interested in determining whether these changes could facilitate redevelopment of nearby private properties, and identifying possible private funding strategies that could help cover the costs of the golf course redesign and construction of playing fields. See attached City Council memorandum, Golf Course redesign and Playing Fields Creation, dated March 7, 2005 (Attachment A). DISCUSSION Assessment process A working group consisting of City staff from the Public Works, Community Services, Planning, and Administrative Services Departments, as well as a representative from the San Francisquito Creek Joint Powers Authority and consultants from the land use planning firm, Ken Kay Associates (KKA), reviewed City Council direction and comments from the public on this topic and the status of the flood control project; identified key issues to be explored; and developed a framework for examining the potential for locating playing fields on the golf course. For special golf course design expertise, the team included a golf course architect provided pro bono to the City by the golf course design firm, Robert Trent Jones II (RTJII). Through research and site visits to the Palo Alto municipal golf course and a number of other local golf courses, staff assembled information about size and other characteristics typical of different types of golf courses, including public and private regulation/championship courses and non-regulation courses and golf practice facilities. According to the US Golf Association, the average total land area for 18 hole golf facilities is 150 to 200 acres, making the Palo Alto golf course at 169.8 acres a little less than average size. In general, golf courses that are built on fewer acres are either private clubs, such as the Olympic Club, Sharon Heights and Los Altos Hills, that typically play about one-third to one-half as many rounds per year as Palo Alto and other municipal courses, or they are non-regulation courses, such as Poplar Creek, Sunnyvale and Los Lagos, that do not have the par or yardage of a “championship” course. See Attachment B for more information about comparative sizes of different types of golf courses, and Attachment C for the size of current facilities at the Palo Alto municipal golf course. The “championship” designation does not mean that golf championships are played on a course but rather indicates that the course meets the minimum accepted standards of a full size golf Attachment D CMR:168:06 Page 3 of 10 course. According to the RTJII representing architect advising the working group, while the standard is somewhat ambiguous there is general consensus that a regulation/championship course will be a minimum par 70 and have a minimum length of 6000 yards from the forward white tees. The Palo Alto golf course is par 72 and 6200 yards, the length having been slightly reduced during the most recent renovation completed in 1999. Par and yardage influence a golfer’s decision to play a course and the fee he/she is willing to pay. A non-championship course provides a different golfing experience and serves a different market segment than a regulation/championship course. Based on the City Council memorandum, the following five goals were identified to guide development of schematic alternatives for adding sports fields to the golf course: • Provide from one to five sports fields. • Maintain viability of the 18 hole regulation/championship golf course. • Provide sufficient parking. • Preserve and maintain opportunities for flood control solutions. • Protect existing wetlands located on or near the golf course, including incorporating wetlands into the playing area. Several staff/consultant work sessions culminated in an all-day workshop at the golf course on September 14, 2005, attended by working group staff members, the KKA consultants, the RTJII golf course architect and two members of the City’s Golf Advisory Committee. Members of the Golf Advisory Committee and the Parks and Recreation Commission were invited to attend. Prior to the workshop, KKA staff developed exhibits illustrating possible locations for one to five sports fields on the golf course site. In all options, the sports fields are located in the south and west part of the golf course to minimize impacts on the course, take advantage of unused space and make efficient use of nearby parking areas. See attached layout diagrams A, B, C, and D showing the conceptual location of playing fields on an aerial map of the golf course and the Baylands Athletic Center (Attachment D). Evaluation of Four Alternative Sports Field Layouts The purpose of the workshop was to assess the impact to the golf course as increasing numbers of sports fields are added, in terms of the number of golf holes that would require modification or complete redesign; as well as possible impacts to the regulation/championship status of the golf course; playability; and possible impacts on economic viability, operations and safety. The golf course architect described to the working group the key principles of golf course design and other factors to be considered in redesigning the golf course in response to the addition of sports fields. In addition to the rules of golf and the need to design for an interesting, challenging and enjoyable golf game, the following influencing factors were identified by the golf course architect: • There is a “domino effect” when any part of the golf course is displaced. Change to one hole can ripple through several other holes, increasing the risk that yardage and par of the course will be affected by the change. • Differences between public and private golf courses translate into additional space requirements for public courses. The principal difference is that public courses typically have two or three times the volume of play compared to private clubs. Public courses Attachment D CMR:168:06 Page 4 of 10 must be designed to accommodate 80,000 to 90,000 rounds per year while avoiding crowding and delay. Also, more people are on the course at the same time, and players have a wider range of skill levels, both of which increase risk; however, the general public has a lower tolerance for risk than would be the case at a private club. • The continually changing technology of golf clubs and golf balls requires greater distances between players to provide an acceptable level of safety. • On a flat site with no significant high vertical elements such as groves of mature trees, the safety buffer between fairways, green and tees is provided by distance. Due to salt water intrusion in the Baylands area, establishment of large stands of mature trees for buffering would be difficult to achieve, and redesign of the existing course would result in removal of many of the existing trees. • Golf is incompatible with close adjacency to most other uses due to the risk of bystanders being struck by golf balls. Golf customers knowingly assume that risk when they enter the golf course, but users of adjacent sites do not assume that risk. The risk can be managed through design by providing distance or physical barriers. • The wetlands areas located throughout the golf course are a design constraint. While the wetland areas could be incorporated into the course design, the need to design around them will restrict design choices. Following is a description of the four schematic layouts developed and studied in the workshop, including the number of sports fields added, the number of golf holes impacted, and how additional parking is provided under each option: Layout A. One soccer field is provided in the southwest corner of the golf course. This requires the redesign of four holes on the golf course. Existing paved areas are restriped to provide 50 additional parking spaces at the Baylands Athletic Center parking lot and along one side of Geng Road. Layout B. Two soccer fields are located in the southwest corner of the golf course. One of the fields would displace the existing lake. Eight golf holes would have to be redesigned and reconstructed. In addition to the 50 parking spaces added at the existing Athletic Center parking lot and along Geng Road, a new parking lot with 50 spaces is constructed on the golf course. Layout C. Two soccer fields and one baseball diamond are added in the southwest corner of the golf course and along Embarcadero Road. Ten holes on the golf course would have to be redesigned and reconstructed. In addition to the parking provided in the two previous options, Embarcadero Road would be restriped to provide 32 curbside parking spaces along the north side of the street, and a second new parking lot with 25 spaces would be constructed on the golf course, providing a total of 157 new spaces. Layout D. Four soccer fields and one baseball diamond are added in the southwest corner of the golf course and along Embarcadero Road. This would impact all 18 holes, requiring a complete redesign and reconstruction of the entire golf course. Parking would be provided as in Option C, plus 25 additional spaces constructed on the golf course for a total of 182 new parking spaces. Attachment D CMR:168:06 Page 5 of 10 FOUR SCHEMATIC LAYOUTS STUDIED New Parking Provided Layout Sports Fields Added Golf Holes Impacted Restripe existing paving New paving Total new spaces A 1 4 50 0 50 B 2 8 50 50 100 C 3 10 82 75 157 D 4 or 5 Entire Course 82 100 182 Results of the Analysis of Four Alternative Sports Field Layouts The results of the design exercise indicate that if the golf course is to remain a public 18 hole championship golf course serving current or similar user groups, there is limited space that could be dedicated for active recreation uses without compromising the playability, economic viability, and safety of the golf course. See the attached letter from RTJII dated February 28, 2006 for a more detailed description of its analysis and conclusions (Attachment E). Layout A: One sports field could be added to the existing 18 hole course while retaining the championship status; at least four golf holes would need to be redesigned and reconstructed. Layouts B and C: Adding two or three sports field to the existing golf course would require redesign / reconstruction of a large part of the golf course and may not maintain 18 hole regulation category par and course distance. More detailed design study would be required to determine the precise impact of these changes on the championship status of the golf course. Layout D: Adding 4 or 5 sports fields and the additional required parking would require a total redesign and reconstruction of the golf course. While this provides an opportunity to design a completely different course, the area available for the new golf course would be significantly smaller than the existing course. The area may not be sufficient to provide the regulation length and par of a championship course and also meet the special requirements of a public golf course: accommodate a high volume of play and a wide range of skill levels while minimizing risk of injury from errant golf balls. The addition of four or more playing fields presents a decision point between maintaining championship par and yardage or adding playing fields. The golf course par and yardage could be reduced to provide a smaller non-championship golf course that would meet the volume and safety standards of a public golf course and also provide space for additional playing fields. IMPACT OF SPORTS FIELDS ON CHAMPIONSHIP STATUS OF GOLF COURSE Layout Sports Fields Added Impact on championship status of Golf Course A 1 Unchanged B and C 2 or 3 May be Compromised D 4 or 5 Unlikely to provide an 18 hole championship golf course serving the golfing public without compromising playability and safety Attachment D CMR:168:06 Page 6 of 10 Costs and Financial Feasibilty of the Four Golf Course/Sports Field Alternatives The cost of adding sports fields to the golf course would include the cost of designing and reconstructing the impacted portions of the golf course, the cost of constructing the sports fields and any related parking improvements, golf tenant contract changes (revenue reductions) or buyout of existing leases and contracts, and lost revenue for a period during and following construction when it may take several years to regain the existing customer base. During construction some players will go elsewhere and some may not return when the construction is completed, resulting in lost revenue. The number of golf rounds played at the course is still down from the previous golf course renovation completed in 1999. ORDER OF MAGNITUDE COST ESTIMATES (millions) Layout A B C D Revised Revenue $2.0 $1.3 $0.7 $0.01 Costs Golf Course Redesign $3.0 $6.0 $8.0 $10.0 Sports Fields ($1.5 million/field) $1.5 $3.0 $4.5 $7.5 Continuing Operating Costs $2.6 $1.5 $1.5 $0.5 Tenant Contract Pay Off (High Estimate) $10 $10 $10 Total Financial Impact - $5.1 million - $19.2 million - $23.3 million -$28.0 million Total Assuming Donated Sports Field Construction -$3.6 million -$16.2 million -$18.8 million -$20.5 million Included in the above costs is the City’s Golf Course Corporation’s obligation to pay debt service on the outstanding golf course bonds, about $560,000 annually, which will continue regardless of changes that may be made to the golf course. Certificates of Participation were issued in 1998 with the understanding that the debt would be paid from golf course revenues. Reduction or elimination of revenues during reconstruction of the golf course would shift some or all of this cost to the General Fund. Deciding to fund any of the alternatives would have a significant impact on the City’s budget. The City’s ability to fund current service levels and other priorities would be significantly impacted. Potential Flood Control Solutions In October, the San Francisquito Creek Joint Powers Authority (JPA) and the US Army Corps of Engineers (Corps) initiated a feasibility study for a potential flood damage reduction and ecosystem restoration project on San Francisquito Creek. The study is expected to take five to seven years and will identify and analyze potential options to reduce flooding along the creek. The study products will include a preferred flood control project alternative, an environmental Attachment D CMR:168:06 Page 7 of 10 impact report prepared in conformance with both the California Environmental Quality Act (CEQA) and the National Environmental Policy Act (NEPA), and a cost/benefit analysis that will determine whether future federal funding is warranted for the project. Some of the flood control options that the study will evaluate include modifications to the Palo Alto Municipal Golf Course while others do not. The preferred San Francisquito Creek flood control option identified in the study may be one on the following list or a combination of one or more of the listed options: • Upstream storage reservoir • Series of upstream storm water detention basins • Parallel bypass channel or pipeline to convey excess flood flows • Downstream overflow basin • Channel widening • Construction of higher levees or floodwalls • Bridge modifications Implementation of the bypass channel, overflow basin, and to a lesser extent the channel widening options will require a redesign of at least a portion of the golf course. This introduces the possibility of investigating the potential for a flood control solution incorporating a multi-use flood control/ recreation facility. Public funds may be available to help offset the cost of multiuse recreation facilities, and the City should participate in identifying funding sources if a multiuse flood control option appears feasible. The information gained in this golf course preliminary feasibility study has helped position the City to participate more effectively in exploring a golf/recreation component in a possible multi-use flood control facility. For additional information about possible flood control project impacts on the golf course see Attachment F, Public Works Department memorandum. Private Financing Strategies The City Council memorandum directed staff to consider possible private financing strategies that could help cover the costs of designing and constructing a new golf course and playing fields, and also whether changes to the golf course could encourage redevelopment of nearby private properties. Private commercial or residential development scenarios that would contribute substantially to the cost of redesigning and constructing a new golf course and playing fields do not appear promising at this time. City staff spoke with several golf course developers and with representatives of the owners of the Harbor office park about factors influencing possible golf course/commercial/residential development options. There was consensus among the experts consulted that the Baylands is not a good location for developing a resort hotel with golf course. Residential development was described as potentially feasible only with substantial City involvement that would eliminate the upfront cost and risk for the developer, requiring the City to conduct all development studies and environmental review and provide the developer with a “ready to build” site, and at a scale involving several hundred units on 30 to 50 acres of land. Airport noise and the costs associated with meeting flood zone requirements were also considered impediments to residential development in the Baylands. There is some evidence that the current golf course or an improved golf course may support existing and new private development in the Baylands. The Harbor office complex markets the location amenities of the Attachment D CMR:168:06 Page 8 of 10 Baylands, airport and golf course; however, while some of its tenants use these facilities, they do not consider them to be a really big draw. The owners of Ming’s restaurant are now exploring the feasibility of converting the property they own at the corner of East Bayshore Road and Embarcadero Road from a restaurant to a hotel; they have indicated that the presence of the Palo Alto golf course is seen as an asset, particularly for business visitors. VillaSport Athletic Club and Spa, a health club developer, has expressed an interest in exploring the possibility of leasing land on the golf course to construct a private, family-oriented, full service health club. While usually a private membership club, Villasport is willing to provide for some use of the health club by the public. VillaSport constructs and retains ownership of its facilities and manages the facilities. If the City were to develop a new profit-making golf course, Villasport would pay the City for the right to operate the golf course. These payments to the City, which could be substantive, to lease land for the health club and for the right to operate the golf course could be used to help offset the cost of a new golf course. During preliminary discussions with VillaSport, some of the issues that have been identified that would need to be resolved are use of dedicated parkland, access by the general public, and policy implications of the size of the typical Villasport facility - an 85,000 square feet building with a height of 38 feet located on 8 acres, and related parking and traffic issues. While some golf course developers could be interested in developing a new 18 hole championship golf course on the Palo Alto golf course property, as discussed previously there does not appear to be room on the site for both a public 18 hole championship golf course as well as several playing fields. According to the golf course developers and golf course designers who talked with staff, a golf course developer would want the site as unconstrained as possible. Golf course designer Gary Linn described a scenario that might accommodate both a championship golf course and several sports fields if all constraints were removed from the site by eliminating a major portion of the Bay Trail that runs along the golf course so that the golf holes could be raised and extended out to the levies, and eliminating the wetlands on the golf course and mitigating them on or off site. These changes are possible, but they would involve substantial environmental challenges and increased costs. Some golf course developers also may be interested in developing a smaller non-championship golf course and/or golf practice facilities, such as a nine hole golf course and double deck driving range, and providing sports playing fields, as these facilities can be very profitable. However, some of the golf experts who spoke with staff stated that they believe the market for golf practice facilities is saturated in this area. RESOURCE IMPACT No additional costs are associated with the recommended actions. If the City Council were to pursue other options that are discussed in the report, costs would be incurred, and these are discussed in the report on page 6. POLICY IMPLICATIONS The recommended actions do not represent any change to City policies. ENVIRONMENTAL REVIEW This report is statutorily exempt from the California Environmental Quality Act (CEQA) under Section 15262, Feasibility and Planning Studies. Studies for possible future actions which are Attachment D CMR:168:06 Page 9 of 10 not approved, adopted or funded do not require preparation of an EIR or negative declaration. Environmental review will be required for any future project on the golf course. All of the options discussed in this report would result in a more intense use of the site than the existing golf course use. Some of the environmental issues that would need to be addressed for a future project include the following: • Special status species. The Mitigated Negative Declaration (MND) prepared for the 1994 Golf Course Master Plan found that at that time suitable habitat existed on the golf course to support at least eight special status species, several of which were thought likely to be using the site. • Wetlands and riparian habitat. The 1994 MND identified jurisdictional wetlands in eleven locations on the golf course, totaling 2.51 acres. These wetland areas are required to be protected, or mitigated on or off site if they are removed. While some of the wetland areas were of low habitat value, several were considered potential habitat for special status species. The riparian area of San Francisquito Creek is adjacent to the golf course on the north and west. • Artificial night lighting. Artificial night light in the vicinity of natural areas, particularly coastal environments, is considered a potentially significant environmental impact because of its detrimental affect on basic biological and ecological systems. See Attachment G for the article, “Degraded Darkness”, Conservation in Practice, Spring 2004, and additional reference sources on this topic). • Parking and traffic. Some potential future changes to the golf course would require construction of additional paved parking areas and would result in increased traffic. The intersection at Embarcadero Road and East Bayshore Road currently operates with PM level of service D. • Aesthetics. Construction of buildings and tall fences could impact views and the visual character of the Baylands. • Flooding and seismic risk. The golf course elevation is approximately at sea level with site elevations varying from -4.4 feet in drainage channels to + 7.5 feet at the tops of several greens. The one hundred year (1%) high tide event is 8 feet above sea level. The golf course site has high susceptibility for earthquake liquefaction and ground shaking. • Consistency with relevant plans and policies. Some of the concepts discussed in this report could present possible conflicts with adopted land use and environmental policies in the Comprehensive Plan and the Baylands Master Plan. Attachment D CMR:168:06 Page 10 of 10 PREPARED BY: __________________________________ VIRGINIA WARHEIT Senior Planner DEPARTMENT HEAD: __________________________________ STEVE EMSLIE Director of Planning and Community Environment CITY MANAGER APPROVAL: __________________________________ EMILY HARRISON Assistant City Manager ATTACHMENTS Attachment A: City Council memorandum, March 7, 2005 Attachment B: Size Comparison of different types of golf courses with photos Attachment C: Palo Alto Municipal Golf Course: Size by subarea Attachment D: Golf Course/Sports Field Schematic Layouts A, B, C, and D and Impact/Benefit Assessment Table Attachment E: Letter from Robert Trent Jones II Attachment F: Public Works Department memorandum Attachment G: Artificial Night Light Reference Sources cc: Parks and Recreation Commission Palo Alto Golf Course Advisory Committee Patrycja Bossak, San Francisco Bay Trails Robert Trent Jones II Gary Linn Cynthia D’Agosta, San Francisquito Creek Joint Powers Authority Walter Altholz, VillaSport Timothy Cahill,UBS Realty Investors LLC Attachment D 10990 Wilshire Boulevard Suite 1500 Los Angeles, CA 90024 310.477.9585 FAX 310.478.1950 www.econres.com Los Angeles San Francisco San Diego Chicago Washington DC New York London Palo Alto Muni Operational Analysis Executive Summary ƒ The City of Palo Alto provides golf services through its municipal golf course – Palo Alto Muni. Presently, the golf course operation and food and beverage functions are the responsibility of private sector providers, while the City maintains the golf course. ƒ The Bay Area golf market, like nearly every major metropolitan market in the country, has experienced very soft market conditions over the past six to seven years. The Bay Area public golf market has been more severely affected and recovered more slowly than most markets. ƒ Play at Palo Alto Muni has declined from about 90,000 rounds in 2000 to 76,240 rounds in 2007, a decline of 16 percent over the 2000-2007 period. By comparison, the average play per public access course in the Bay Area has declined about 12 percent since 2000, with play at the more relevant competitive set of public access courses down about 17 percent. ƒ Conditions at most Bay Area public courses have stabilized and there has been modest improvement in play levels over the past two years. Over the next five- to ten-year period, the regional golf market is expected to continue to gradually improve as the “baby boom” population ages in-place and limited expansion of the inventory of public golf courses occurs. ƒ Annual play at competitive Bay Area courses ranges from 57,000 to 87,000 rounds, averaging 70,700 rounds. Palo Alto Muni, at 76,000 rounds, ranks third among the 15 competitive courses surveyed. ƒ Greens fees at Palo Alto Muni of $36 weekdays and $47 weekends, excluding cart, are near the top of the range among competitive Bay Area courses, and are deemed at, or approaching, market levels. ƒ Palo Alto Muni revenue performance generally is favorable: – The average greens fee is $30.40 which compares with an average of $28.89 for competitive courses over a range of $19.31 to $37.92 per round. – Cart revenue per round is $4.08, lowest among competitive courses due to very low cart utilization which stems primarily from the limited course topography and short distance between greens and tees. Economics Research Associates Project No. 17383 Page 2 – Range revenue averages $13,600 per tee per year for the 26-tee facility, ranking the facility among the top of the competitive set of courses. – Merchandise sales at Brad Lozares Golf Shop are at a very high level, ranking Palo Alto Muni as one of the top golf retail operations at municipal courses in the country. – Given the limited capacity of the clubhouse to accommodate special events, food and beverage revenue is consistent with the performance at competitive facilities. ƒ Approximately 20 percent of Palo Alto Muni golfers reside within the City, with the majority of others residing in other South Bay communities. ƒ A survey of golfers at Palo Alto Muni revealed a high satisfaction level in terms of the tee time reservation system, tee time reliability, marshalling, and pace of play. Nearly 90 percent of golfers deemed weekday and 73 percent weekend greens fees acceptable. ƒ A very high percentage of golfers rate golf operations (instruction, customer service, merchandise) “excellent” or “good,” while only about one-half rated food and beverage facilities/services at this level. ƒ The majority of golfers rated golf course conditions as “fair” or “poor.” ƒ Of those respondents who stated that Palo Alto was not their primary course, primary reasons were: – Course quality/play experience: 41.1% – Location: 23.4% – Fees: 12.5% – Tee time availability: 6.8% Clearly, course quality and play experience, and not fee levels or tee time availability, are the primary reasons why most people choose another facility over Palo Alto Muni as their primary course. ƒ About 40 percent of the golf course master plan improvements were completed in the 1998-1999 course renovation. In light of the cost of completing the master plan improvements, and the threat of major disruption/impacts related to the San Francisco Economics Research Associates Project No. 17383 Page 3 Creek Flood Control project, it is prudent to consider limited targeted improvements to the course. ƒ The highest priority capital improvements needed for the golf course to remain competitive in the marketplace are summarized below: Component Amount ($000) Golf Course $ 870 Driving Range 600 Maintenance Yard 100 Clubhouse --- Soft Costs/Contingency 314 Total $1,884 ƒ The $870,000 allowance for the golf course improvements addresses primarily problems with original greens and bunkers which require rebuilding. Completion of the full master plan improvements would likely cost $4 to $5 million, or more, and is not considered to be cost-effective at this time. At least in the near- to mid-term, it would appear to be more appropriate to intensify golf course maintenance – including resumption of the fairway sanding program – than investing in extraordinary golf course improvements. ƒ Maintenance staffing levels at Palo Alto Muni compared with Bay Area competitive facilities is summarized as follows: Course Maintenance Employees Full Time Part Time (FTE) Total (FTE) Palo Alto Muni 9 1 10 Comparative Courses Range 10-15 0-3 12-17 Average 12 2 14 ƒ Excluding irrigation, annual maintenance costs at Palo Alto Muni are compared with benchmark facilities, as follows: Economics Research Associates Project No. 17383 Page 4 Annual Maintenance Expenses ($000) Palo Alto Muni $1,195 Public Provider Range (5 courses) $1,033-1,336 Average $1,171 Private Provider Range (10 courses) $ 474-1,105 Average $ 778 ƒ As with most public agencies, the City of Palo Alto assesses a charge to the golf course for Citywide overhead services such as human resources, legal, accounting, budget, management, purchasing, insurance (the City is self-insured), and similar functions. Referenced as the Cost Plan, currently the assessment totals about $380,000 per year. ƒ Clearly, there is a value of the overhead services provided by the City. While it is difficult to precisely determine the value of these overhead services, an estimate based on assessing the cost of these services if provided by a typical owner/operator can be offered: Overhead Service Annual Amount On-Site Accounting $ 50,000 Audit 25,000 Insurance (liability, general) 40,000 Contract Management 35,000 Other Services* 75,000 Total $225,000 *Represents portion of typical professional management fee related to providing human resources, budget, cash management, accounting and reporting systems, and other required overhead services. ƒ Net income accruing to the City from golf operations for FY 2007 is shown after deducting an allowance for the Cost Plan: Economics Research Associates Project No. 17383 Page 5 FY 2007 Net Income ($000) As Reported Adjusted City Net Operating Income $992 $992 Less: Debt Service ( 558) ( 558) Cost Plan ( 380) ( 225) Adjusted Net Income $ 54 $209 ƒ Under the current operating structure, and assuming completion of the limited capital improvement program, the golf course is expected to generate $950,000 per year in net operating income at a stabilized play level, prior to debt service ($559,000 existing plus $145,000 related to financing proposed capital improvements) and the City’s Cost Plan (overhead) allocation. This compares with about $900,000 reported for 2007 (after deducting an allowance for capital improvement replacement reserves). Thousands of 2008 Constant Dollars Projected at Stabilized Play Actual 2007 Cost Plan Adjusted Cost Plan Revenue $2,851 $3,148 $3,148 Less: Operating Expenses1 1,859 2,098 2,098 Net Operating Income $ 992 $1,050 $1,050 Less: Existing Debt Service $ 558 $ 558 $ 558 New Debt Service --- 145 145 Cost Plan 380 380 225 Replacement Reserve 95 101 101 Subtotal $1,033 $1,184 $1,029 Net Cash Flow ($ 41) ($ 134) $ 21 While net cash flow is projected to decline slightly following the completion of capital improvements, a more precipitous decline would be expected in the absence of such a program as the course becomes less competitive. ƒ The current golf operations agreement is a hybrid structure which is slightly favorable to the concessionaire. Hypothetically, the golf operations function could be converted to a more traditional facility lease (concession agreement) or fee-for-service management agreement. If the City continues to maintain the golf course, nominal improvement in net cash flow would result from a change in the operating structure. ƒ The differential between City and private providers maintenance function of the golf course is estimated at $250,000 to $300,000 per year. Thus, any form of Economics Research Associates Project No. 17383 Page 6 management, with private maintenance, would likely increase City net income by this amount of cost savings. ƒ The City funded the $7 million 1998-1999 capital improvements with a tax-exempt bond issue. To maintain the tax-exempt status of the bonds, the IRS requires compliance with several provisions including the form and structure of management. These provisions, in large part, have influenced the current structure. Altering the operating structure to a traditional concessionaire agreement or leasing the facility likely would require modification of the current debt structure. ATTACHMENT I 1 December 5, 2011 Council Study Session Questions and Answers a. Does $3 million reconfiguration estimate include replacement of the irrigation system? Response: Yes, but not the entire irrigation system, rather only for the holes that are reconfigured which varies in the four design options. b. How much money would we get for the Stanford dirt The exact dollar amount would need to be negotiated. Staff has met with Stanford twice since the December 5, 2011 study session. Stanford has indicated interest but has not yet proposed a dollar figure. c. Will the SFCJPA pay for loss of revenue during construction? Unknown at this time; staff has expressed the concern of lost revenue to the SFCJPA and have quantified what the loss in revenue may be with the four design options being considered - See National Golf Foundation Golf Course Pro Formas d. What will be the difference in rounds of play with the proposed improvements? See National Golf Foundation Golf Course Pro Formas e. What is the anticipated revenue after improvements? See National Golf Foundation Golf Course Pro Formas f. What is the size (acreage, holes, par) of other neighboring or competing golf courses (both public and private) (Shoreline, Sunnyvale, etc.) Palo Alto Golf Course Driving Range 4.9 acres Clubhouse 1.5 acres Parking Lot 1.9 acres Maintenance Facility 2.0 acres Pond 1.7 acres Designated Wetland Areas 2.5 acres Historic Waters 17.3 acres Golf Course irrigated acres 135 Golf Course (excluding existing facilities) 157.8 acres Golf Course (excluding facilities and sensitive areas) 138 acres Weekdays $39 Residents $37 / Weekends $49 Residents $47 / Senior Resident $28 Other golf course comparisons: Poplar Creek Golf (public course in San Mateo, Ca) 18 holes / Par 71 / 6042 yards /Rest / Pro Shop / No Driving Range ATTACHMENT I 2 105 acres which has 80 irrigated Weekdays $38 , Residents $33 / Weekends $53 Residents $45 Moffitt Field Golf Course (public golf course in Santa Clara County) 18 holes / 6517 yards / Par 72 / Pro Shop 125 acres which has 73 acres irrigated Military Weekdays $10 / Retired $25 / Weekends Military $20 Retired / $25 / NASA $25 Weekdays $34 Weekends Quail Lodge Golf Club (semi private resort Monterey County) 18 holes / par 71 / 6515 yards / CH / Maintenance Yard / DR / Pro Shop 130 acres which has 115 acres irrigated The Olympic Club Golf Course (San Francisco, Ca. Private) It has 45 holes / 2-18 Hole Par 71 courses / Lake Course 6871 yards /Ocean Course 6496 yards / DR/ CH / Maintenance yard / Pro Shop 365 acres which has a 200 acres irrigated. Callippe Golf Course (public course in Pleasanton, Ca.) 18 holes / 6748 yards / Par 72 /CH / Maintenance yard / DR / Pro Shop 175 acres which has 126 acres irrigated Weekday $37, non-resident $44 / Weekend $53, non-resident $64 / senior $27 Stanford Golf Club (private course in Stanford, Ca.) 18 holes / Par 72 / 6231 yards /CH / Maintenance yard /Pro Shop 170 acres which has 110 acres irrigated. San Jose Municipal Golf Course (public course in San Jose,Ca.) 18 holes / Par 72/ 6700 yards / Bar/ Grill / Maintenance / DR / Pro Shop 120 acres which has 100 acres irrigated Weekday $37 / Weekend $51 / senior $23 (no resident discount) Sunnyvale Municipal Golf (public course in Sunnyvale, Ca.) 18 Holes / Par 70 / 6255 yards / Bar and Grill / Maintenance Yard / Pro Shop 145 acres which has 100 acres irrigated. Weekdays $35 / Weekends resident $44, non-residents $48 Santa Teresa Golf Club (public course in San Jose, Ca.) 27 holes / CH / Maintenance Yard /DR / Pro Shop 150 acres which has 120 acres irrigated. 27 holes. ATTACHMENT I 3 Weekdays $40, Fridays $46, Weekends $60, seniors $24 Resource: Gary Carls—past Golf Superintendent and Director of Shoreline Golf (public course in Mt. View, Ca.) 18 holes / 6996 yards / restaurant / Maintenance Yard / DR / Pro Shop 150 acres which has 130 acres irrigated Weekday$31 nonresident $38 / Weekend $47 non-resident $54 Senior$28 Santa Clara Golf (public course in Santa Clara, Ca) 18 holes / Par 72 / 6704 yards / Driving Range / Club House / Pro Shop 150 acres which has 100 acres irrigated $25 Weekday, non-resident $37 / Weekend $34, non-resident $50 Spring Valley Golf (public course in Milpitas, Ca.) 18 Holes / Par 72 / 6,140 yards/ DR / CH / Pro Shop / 120 acres which has 85 irrigated Weekdays $37 / Weekend $55 / Seniors $28 Pajaro Golf Club (public course in Watsonville , Ca. ) 18 hole / Par 72 / 6500 yards /DR / CH / Maintenance Yard / Pro Shop 120 acres total which has 90 acres irrigated Weekdays $45 / Weekends $55 g. Can the Palo Alto course be more compact? Yes, see design option G h. How much land would the creek levees take? 7.4 acres i. What percentage of golfers that play Palo Alto Golf Course are Palo Alto residents? Residency data for Palo Alto and neighboring Golf Courses:  Palo Alto 20%  Callippe 30%  Santa Clara 35% huge resident discounts  Sunnyvale 23%  Shoreline 26%  Los Lagos 60% j. What percentage of field users are Palo Alto residents? The latest Palo Alto residency verification of the four major youth soccer clubs is as follows: 1. AYSO – 95% 2. Palo Alto Soccer Club – 70% 3. Stanford Soccer Club – 78% 4. PSV Union Football Club – 52% ATTACHMENT I 4 Other major field users are as follows: 1. Palo Alto Little League –90% 2. Palo Alto Girls Softball – 88% 3. Palo Alto Babe Ruth – 52% 4. Tomahawks Lacrosse –59% 5. Palo Alto Adult Soccer League –40% 6. Palo Alto Coed Soccer League – 16% 7. Silicon Valley Soccer Association – 14% k. What percentage of Palo Altans are golfers (and may play other places)? Unknown at this time l. What kind of revenue could we derive from a double deck driving range The driving range is managed by the Brad Lozares as part of his management agreement wit the City. The City and Lozares split the revenue from the driving range, 62% City and 38% Lozares. Lozares is responsible for maintenance, day to day operations and marketing. City is responsible for capital improvements. Total revenues are approximately $340,000 annually. m. If the dimensions of the holes are altered significantly to accommodate field space, will this affect the popularity of the course? It depends; what makes a Golf Course popular has many factors, among those listed below. To the extent the factors below and others remain in the new configuration the Golf Course can be more or less popular among golfers: Length - 6,500 yards or longer Safe – holes are not too close to one another Quality playing surfaces – particularly the greens, approaches and tees Customer Service – fun, professional, convenient Pace of play Memorable holes (wow factor) Rodent and geese control n. What are the demographics of golfers? Total Annual Rounds:  Junior Rounds-12%  Senior Rounds-24%  All Others-64% o. Did we get full input from all stakeholders? i. A community meeting was held on January 26, 2011 that included a wide range of stakeholders beyond the golfing community. The community meeting was very valuable in understanding varied interests. A summary of the feedback received from this meeting ATTACHMENT I 5 is attached to the staff report and can also be seen at the City website: www.cityofpaloalto.org/golf p. What is the cost of plan F? Costs for all four Golf Course design options can be seen in Attachment A q. Will the SFCJPA be the lead for EIR for improvements beyond the basic restoration? No, the City will need to conduct all environmental analysis for altering the Golf Course beyond what is needed as part of the flood control mitigation. r. Who would be responsible for the supplemental EIR for the clubhouse improvements? The City of Palo Alto s. How can we turn around the trend of declining rounds of play? If we invest in the Golf Course asset, as seen in design options D, F and G, the ROI analysis by the National Golf Foundation suggests Palo Alto will be able to differentiate itself from our neighbors and find a competitive advantage to turn the trend around. Changing the golfing experience to be more Bay friendly, including renaming the Palo Alto Muni to Baylands Palo Alto, and many more Baylands features including elevated tees and greens so golfers can see the bay and surrounding hills are some of the design features Richardson has developed that staff feel will generate additional golf play. t. Why is there only a $2 differential between residents and non-residents? Because non-resident play is critical to the cost recovery of the Golf Course the resident discount or put another way non-residents premium, has been minimal. u. How many people use the driving range annually? Lozares estimates 20% of the driving range patrons use the range before their round of golf. The remaining 80% of the patrons use the driving range for practice and/or instruction. Approximately 42,000 buckets of range balls are sold annually. How many unique driving range users is unknown. v. How many driving range users are residents? This information is unknown as there is one set of fees for using the driving range with no differentiation for residency. w. What is the timeline of the SFCJPA project, including decision points? SFCJPA to provide x. If Council decided not to keep the golf course, would we loose JPA mitigation money? To be determined, the question has been posed to the SFCJPA staff. ATTACHMENT J Palo Alto Golf Course Renovation & Reconfiguration Project — SFCJPA Floodway Improvements SCOPE OF WORK & PROFESSIONAL FEES (PLAN “G”) A. It is the intention of the Owner to: Finalize the design and implement the reconfiguration of the existing Palo Alto Municipal Golf Course in order to accommodate the San Francisquito Creek Flood Protection and Ecosystem Restoration Capital Project; incorporating improvement plans and reconstruction work to preserve the quality of the golf course facility within the golf course land area following the impact of the flood protection and ecosystem restoration work and to allow for approximately 10 acres of future recreation development consistent with “Plan G” as developed under the SFCJPA work to date, (Hereinafter referred to as the “Project”). B. Scope of Work Outline (Golf Course Architect’s Professional Services Inclusive of Primary Sub-consultant Services): (i) Design Development Phase • Prepare Design Development Plan at 1”=100’ scale with locations of all golf features, turf limits, path alignments and hole centerlines • Prepare construction phasing plan and schedule • Required meetings for scheduling, approvals and administration • Contract Administration & Invoicing • Prepare Probable Cost Estimate(s) • Environmental Consulting (During Design Development Phase) • Biological Resources Evaluation • Ecological Design Collaboration • Required meetings for scheduling, approvals and administration • Contract Administration & Invoicing (ii) Construction Documents & Specifications Phase • Prepare Final golf course grading and drainage plans; showing shaping, contours and feature drainage for reconfigured golf holes and areas • Green plans; showing detailed contours of new putting surfaces and drainage for all greens • Irrigation plans, including all details, specifications and requirements • Specifications and details required for construction of the above noted plans, integrated with requirements for agronomic and any special details to be provided by the Owner • Other plans and details deemed to be required by the Golf Course Architect, such as staking plans, clearing plans, grassing plans or arbor plans • A grading plan to show the finished surface and drainage for the future athletic fields area that lies within the existing golf course property • On-course Restroom Plans, Specifications • A phasing plan showing how the construction shall be sequenced, or specifications for sequencing • Environmental Consulting (During Design Development Phase) • Required meetings for scheduling, approvals and administration • Contract Administration & Invoicing • Prepare Probable Cost Estimate(s) (iii) Bidding Phase • Coordination of the bidding process in concert with the City • Coordination of a pre-bidding meeting • Written Clarifications (as needed) • Evaluation of bids received • Contract Administration & Invoicing (iv) Construction Support Phase • Coordination of a pre-construction meeting • Review of staking by the Contractor • Coordination of RFI and Shop Drawings required to facilitate the work • Periodic site visits (up to 30) to observe progress and make interpretations for the purposes of obtaining the best possible finished golf features • Support services of the Project Civil Engineer and Irrigation Consultant • Review of weekly progress reports by the Contractor • Required meetings for scheduling, approvals and administration • Contract Administration & Invoicing C. Scope of Work Outline (Optional and Optional Sub-consultant Services): (i) Project Representative (Construction Management Services During Construction) • Regular, on-site observations to ascertain progress, compliance and quality of the work performed by the Contractor • Review of weekly progress reports by the Contractor • Coordination of the site visits of the Golf Course Architect • Required meetings for scheduling, approvals and administration (10-12 months) • Contract Administration & Invoicing (iii) Stanford Medical Center (or other) Soil Importation • Civil Engineering for Stockpiling, Testing, etc. • Additional Shaping Plans • Additional Coordination, Phasing Plans • Additional Probable Cost Estimate(s) D. Professional Fees & Reimbursable Expenses Golf Course Architect: Design Development Plan $ 16,785.00* Construction Documents & Specifications 180,790.00* Bidding Phase 11,140.00 Construction Support Phase 84,320.00 Reimbursable Expenses (Travel and Other) 43,800.00 Environmental Consulting and Expenses *(Incl.) _________________________ $ 336,835.00 Optional Services: Construction Management Services and Expenses $ 137,925.00 Stanford (or other) Soil Importation Consulting And Expenses 22,200.00 _________________________ $ 160,125.00 _________________________ _________________________ $ 496,960.00 E. Notes and Conditions (i) Based on Assignment to the City of the Existing contract with the S.F.C.J,P.A. to be further defined by the Standard Form of Agreement of the American Society of Golf Course Architects (A.S.G.C.A.) as modified by City conditions and project specific conditions. (ii) The “Total Not to Exceed” amount of the fees and expenses shall be subject to change based on extended project duration, additional work requested by the City or other conditions subject to the Contract. (iii) The Scope of Work and Professional Fees herein is based on payment by S.F.C.J.P.A. to the Golf Course Architect of 50% of Phase (iii) Work under the existing S.F.C.J.P.A. contract prior to assignment to the City. (iv) The plans and specifications for the on-course restroom building is per the design direction established in the Long Range Master Planning work performed to date and based on use of the Project Civil Engineer to coordinate final plans and specifications for utilities, structural and architectural. The restroom building shall be bid and handled under the same contract for the golf course improvement work. [Rev. 7-6-12] 6/19/12 Attachment K National Golf Foundation - Summary of Changes to National Golf Foundation Draft Report from March 6, 2012 Finance Committee Meeting: 1. The base reimbursement from the SFCJPA has been assumed at $3 million. In the initial draft, NGF assumed that the cost of base Option A - $3.54 million - would be fully reimbursed to the City. For revised draft Options A and D, the additional estimated cost above $3 million has been assumed to be covered by a no-interest General Fund loan that will be paid back over five years. The amount of debt for Options F and G were increased by the ~$540,000 difference. 2. The total cost of Option G has been increased to $7.57 million to reflect the Finance Committee’s recommendation to rebuild all 18 greens, re-turf all the fairways, build an on-course restroom and rebuild the practice green area. 3. The cost of debt has been increased from 3.5% to 4.5%. 4. Lost revenues during construction have been adjusted upward to reflect a more conservative position. For instance, rounds played (all 9-hole) during time of construction for Options A, D, and F had been estimated in initial draft to fall by 15% off of recent historical play for the corresponding months. The decrease has been increased to 50%. 5. Proportionately more discounted rounds have been assumed and the average 9-hole green fee lowered by $1 during time of construction. 6. The ramp up to stabilized rounds played has been moderated from the initial draft report to reflect a more conservative position. 7. Annual growth rate in labor expense has been increased from 3% to 4.5% in all scenarios. 8. The base cost for potable water, from which adjustments were made for reduced usage during years affected by construction and also after re-opening to reflect reduced acreage, was lowered to $246,000 based on input from the City. Also, the City provided the following estimates for annual growth in water expense, which were incorporated into the pro formas: -2020: 4.5% 9. The operating and capital reserve under all options has been increased from 3% of total green fee revenues to 10%. 10. At City request, NGF performed a sensitivity analysis on the preferred Option G. The following three scenarios were tested (see pro formas for results): a. Rounds reduced to moderately lower than projected FY 12 performance, continuing downward trend b. Average green fee increasing over recent historical by just less than half the 15% projected increase in base model c. Rounds and average green fees both lower, in combination 11. The marketing budget has been increased under all scenarios to reflect the cost associated with getting golfers to return to and/or try Palo Alto GC (perhaps renamed as “Baylands Golf Club”), as well as cost associated with the re-branding of the golf course. The highest spending is projected during the second fiscal year of construction and the first year upon reopening. 12. The golf course maintenance contract is now projected to grow at 1.5% annually to roughly mirror growth in the CPI. Attachment L June 20, 2012 To: All Members of the Palo Alto City Council From: All Members, Palo Alto Golf Advisory Committee Subject: Comments Regarding Proposed Golf Course Renovation, Option G The Palo Alto Golf Advisory Committee is writing to provide our views on the proposed golf course renovation, Option G, as presented by Mr. Forrest Richardson to the Council’s Finance Committee on March 6, 2012, and recommended for full- Council approval by the Finance Committee at that meeting. To summarize our basic position, our Committee prefers Option D, because we feel it provides less risk to the City, and to the golf community, than does the higher-cost Option G. Because of the greater risk of Option G, our committee would support that option only with the following proviso added to the Council’s approval action: No money shall be spent completing the proposed sports fields whose sites are being provided by Option G, nor on any improvements appurtenant to the sports fields, until all improvements to the 18-hole golf course facility proposed in Option G are completed and operational. In making this recommendation to the Council, we note that neither our Committee, nor the local golf community generally, was able to review Option G prior to the Finance Committee’s action, because the tentative golf course routing and design were not complete and available prior to the meeting. Our Committee has three primary reservations regarding the Option G proposal, which drive our recommendation to the Council: 1) We believe the analysis conducted by the National Golf Foundation, which states that the proposed Option G has the highest potential return-on- investment of the options proposed, understates the potential marketing damage the City would sustain due to the yearlong closure of the course required by Option G. We also have concerns that the NGF’s forecasts regarding growth in rounds and potentially higher green fees from the renovated golf course are overstated, given the competition from other golf properties in the area surrounding Palo Alto Golf Course. 2) We are also concerned that an economic downturn, prior to or during the project construction, or an unexpected increase in construction costs, could result in significant pressure on the Council to approve golf course improvements less than envisioned by Option G, or to reduce the quality of the renovation work during construction, in order to divert money to complete the Option G athletic fields. As the Council is aware, Option G provides only land for the fields, not funds to complete them. Our understanding is that City staff estimates the cost to complete the three fields envisioned at approximately $3 million, with no funding source identified. 3) The additional cost of Option G, which would presumably need to be financed by a debt instrument supported by golf course revenues, in essence puts on the golf community the financial burden of improvements (the athletic fields site) that are not golf related, but are instead a general recreational benefit to the community. In fact, the attached analysis comparing costs of Option G and Option D, prepared by a member of our committee, concluded that approximately $2 million of the $3 million additional cost of Option G was solely due to the greater encroachment to the golf course from creating the athletic fields site. This analysis assumed that irrigation improvements to portions of the golf course not renovated under Option D would be required at some future date. We believe it is appropriate for the City to find another funding source for this $2 million cost, rather than asking the golf community to subsidize a non-golf-related community facility. Since the start of this project, our Committee’s has focused on maintaining or even enhancing the viability of Palo Alto Golf Course, while providing the land necessary for the flood control improvements on San Francisquito Creek. We prefer Option D because it provides the land needed for the flood control project, while also providing design enhancements that would improve the course’s market stature, at a cost that required minimal additional investment from the City, beyond what the joint powers authority for the flood control project is expected to provide, and minimal dependence on what we believe are the NGF’s speculative assumptions regarding the potential for increased annual rounds and higher green fees. Option D also provided a continued presence for the golf course in the market during the renovation project, because it envisioned continuing a full-length nine-hole course throughout the project. During his March 8 presentation, the National Golf Foundation’s representative noted that Option D had the quickest return-on- investment of the options proposed. Based on the Finance Committee’s discussion on March 8, our Committee has assessed the proposed Option G. We can support it, with the proviso presented at the start of this letter, because we believe that proviso would represent a commitment by the Council to prioritize the viability of the golf course following the renovation, which is our Committee’s goal. City of Palo Alto (ID # 3040) City Council Staff Report Report Type: Action ItemsMeeting Date: 7/23/2012 Summary Title: Revote High Speed Rail Initiative Title: Consideration of a Vote of Support for the Revote High Speed Rail Initiative From: City Manager Lead Department: City Manager Recommendation The City Council Rail Committee recommends that Council support the “Revote High Speed Rail” initiative because it is consistent with Council’s adopted policy that the High Speed Rail (HSR) project should be terminated. Background and Discussion The “Revote High Speed Rail” initiative is co-authored by California Senator Doug LaMalfa and retired US Congressman George Radanovich. If placed on the ballot and approved by the voters, the initiative would immediately prevent the sale of any additional HSR bonds approved by the voters under Prop. 1A, effectively ending the currently proposed HSR project. The full “Revote High Speed Rail” initiative text is attached to this staff report (Attachment A) or can be viewed at www.revoterail.com. Currently, the petition is circulating for signatures. The initiative is critical to the City’s desire to terminate the HSR project because it is the a direct means, other than potential litigation, to stop the California High Speed Rail Authority (CHSRA) from moving forward with their initial construction of the project, funded in large part by the sale of bonds. With the passage of SB 1029 on July 6, 2012, $4.76B of the $9.95B Prop 1A bonds were authorized for immediate sale to fund HSR the initial Central Valley segment and connectivity projects in the Bay Area i.e. Caltrain Electrification and in Southern California. Therefore, preventing the sale of these bonds is one of the few means the City has to protect the state from the negative financial impacts that the City believes this project will cause. Council’s policy statement opposing HSR asserts that the project as proposed contradicts Prop. 1A. Moreover, Council is concerned that the economic viability of HSR is highly questionable because the Business Plan is based on faulty assumptions and, therefore not credible. At the June 13, 2012 City Council Rail Committee meeting the Committee voted 2-1 to recommend that the City Council support the initiative with Councilmember Burt dissenting and Councilmember Scharff absent. Councilmember Burt was concerned about the timing of a potential vote of support by the City Council. Attachments: A - Revote High Speed Rail Initiative Text (PDF) Prepared By: Richard Hackmann, Department Head: James Keene, City Manager City Manager Approval: ____________________________________ James Keene, City Manager Revote High Speed Rail Initiative Text Stop the $100 Billion High Speed Train Act THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. FINDINGS and DECLARATIONS The people of the State of California find and declare that: 1. When voters approved the Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century in 2008, they were promised a statewide High-Speed Train project including Sacramento, the San Francisco Bay Area, the Central Valley, Los Angeles, the Inland Empire, Orange County, and San Diego at a cost of approximately $45 Billion. 2. According to the California High Speed Rail Authority in 2008, the estimated cost for Phase One of the project linking just San Francisco and Los Angles was $34 Billion. This phase eliminated Sacramento, Oakland, the Inland Empire, and San Diego. By early 2012, their estimated cost for this Phase One more than tripled and could reach $118 Billion. 3. Despite spending more than $500 Million, not one mile of track was built between 2008 and early 2012 and plans became dependent on billions of dollars of future federal grants or billions of dollars of debt or private investments that the taxpayers of California will be responsible for repaying. 4. California cannot afford to pay for a high speed train system that will cost more than $100 Billion at a time when teachers and police are being laid off, prisoners are being released from prisons, and taxpayers are being asked to dig deeper into their own pockets to pay for basic services. 5. This measure shall be known as the “Stop the $100 Billion High Speed Train Act.” SECTION 2. Section 2704.045 is added to the Streets and Highways Code, to read: 2704.045. Notwithstanding Section 2704.04, it is the intent of the People of California that no further bonds shall be issued and sold for purposes of Sections 2704.06 and 2704.095. SECTION 3. Section 2704.096 is added to the Streets and Highways Code, to read: 2704.096. (a) Notwithstanding any other provision of this chapter, no further bonds shall be issued and sold for purposes of Sections 2704.06 and 2704.095 on and after the effective date of this section. (b) Notwithstanding any other provision of this chapter, all unspent proceeds received from outstanding bonds issued and sold pursuant to Sections 2704.06 and 2704.095 prior to the effective date of this section shall be redirected from those high-speed rail purposes for use in retiring the debt incurred from the issuance and sale of those outstanding bonds. (c) Notwithstanding any other provision of this chapter or any other provision of law, with respect to construction or operation of the high-speed rail project authorized by this chapter, the state shall not, on and after the effective date of this section, (1) incur any additional debt, (2) accept or use any federal funds, (3) provide or use any state funds, or (4) accept any local funds. (d) All agreements entered into by or on behalf of the state relating to the high-speed rail project, other than agreements related to the issuance and repayment of previously issued bonds under this chapter, are hereby terminated as of the effective date of this section. SECTION 4. Severability The provisions of this measure are severable. If any provisions of this measure or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. SECTION 5. Conflicting Initiatives In the event that this measure and another measure or measures relating to the Safe, Reliable High- Speed Passenger Train Bond Act for the 21st Century shall appear on the same statewide election ballot, the provisions of the other measure or measures shall be deemed to be in conflict with this measure. In the event that this measure receives a greater number of affirmative votes, the provisions of this measure shall prevail in their entirety, and the provisions of the other measure or measures shall be void. ***Source: http://www.revoterail.com/initiative  City of Palo Alto (ID # 2978) City Council Staff Report Report Type: Action ItemsMeeting Date: 7/23/2012 July 23, 2012 Page 1 of 3 (ID # 2978) Summary Title: Weed Abatement Reso Title: Public Hearing: Adoption of a Resolution Confirming Weed Abatement Report and Ordering Cost of Abatement to be a Special Assessment on the Respective Properties Described Therein From: City Manager Lead Department: Fire Recommendation Staff recommends Council (1) hold a public hearing to hear and consider objections from affected property owners of proposed assessments related to completed weed abatement work and (2) adopt the attached resolution confirming the report and ordering abatement costs to be a special assessment on the properties specified in the report. Background The Weed Abatement Division of Santa Clara County Agriculture and Environmental Management administers the contract for weed abatement within the City of Palo Alto, in accordance with an agreement established on April 18, 1977 between the City and County. On December 12, 2011, in accordance with Chapter 8.08 of the Palo Alto Municipal Code, the City Council declared weeds to be a nuisance and ordered that the nuisance be abated. A public hearing was held on January 9, 2012, to consider objections to the proposed destruction or removal of the weeds. No objections were noted. Once the above steps had been taken, the County Weed Abatement Division instructed its contractor to abate weeds on City and private properties within Palo Alto. That work has now been completed. Property owners were notified the third week in December 2011 that weeds were to be abated by April 28, July 23, 2012 Page 2 of 3 (ID # 2978) 2012, either by the owners or by the County. If the property owners chose to have the County abate the weeds, the abatement charges would be levied against the respective properties as an assessment by the County Assessor. The County has since informed the property owners of the costs for destroying and removing the weeds. The City Clerk has published the required notice of this hearing in the Palo Alto Weekly. The cost report by the County Weed Abatement Division has been posted on the City Hall Plaza bulletin board for ten days prior to this hearing. Discussion Property owners may object to the charges for weed abatement being levied against their properties. The charge consists of the contractor’s cost plus 150 percent administrative charges, in accordance with Palo Alto’s contract with Santa Clara County (CMR ID#2945, April 23, 2012). A representative from the County Weed Abatement Division will be present at the public hearing with the records of weed abatement that have taken place. Should there be any modifications in the proposed assessments as a result of the hearing, changes in the assessment spread will be made as necessary. After any recalculations are completed, and Council adopts the attached resolution confirming the abatements and ordering those costs to be imposed as liens on the abated properties, the assessments will be submitted to the County Assessor for entry on the October tax roll upon which general City taxes are to be collected. Resource Impact There is no direct fiscal impact of this action to the City. The assessments identified on Attachment B, totaling $7,015.60, will be imposed as liens on the properties listed and will not be borne by the City. Policy Implications This procedure is consistent with existing City policies. July 23, 2012 Page 3 of 3 (ID # 2978) Environmental Assessment The Santa Clara County Counsel has determined the Weed Abatement Program to be Categorically Exempt from CEQA pursuant to CEQA Guidelines Section 15308. Attachments: Exhibit A - 2012 Weed Abatement Program (PDF) Exhibit B - Assessment Report (PDF) Exhibit C - Resolution (DOC) Prepared By: Gordon Simpkinson, Department Head: Dennis Burns, Police Chief City Manager Approval: ____________________________________ James Keene, City Manager ** NOT YET APPROVED ** 120626 sh 8261911 1 Resolution No. ________ Resolution of the Council of the City of Palo Alto Confirming Weed Abatement Report and Ordering Cost of Abatement to be a Special Assessment on the Respective Properties Described Therein WHEREAS, the Council of the City of Palo Alto has heretofore declared weeds growing on certain properties within the City to be a public nuisance by Resolution No. 9213, dated December 12, 2011; and WHEREAS, the Council on January 9, 2012, did adopt Resolution No. 9223 thereby ordering the weed nuisance abated; and WHEREAS, subsequent to the giving of said notice, the Fire Chief, through his Administrator, the Weed Abatement Division of Santa Clara County Department of Agriculture and Environmental Management, has caused to be abated the weeds on the herein described properties; and WHEREAS, the Fire Chief, through his Administrator, the Weed Abatement Division of Santa Clara County Department of Agriculture and Environmental Management, has filed his report and assessment list for weed abatement as provided by law and a hearing has been duly set and noticed, for objections to said report and assessment list and for confirmation; and WHEREAS, the Council has duly considered the report and assessment list and any objections thereto. NOW, THEREFORE, the City Council of the City of Palo Alto does hereby RESOLVE as follows: SECTION 1. The report and assessment list is in all respects complete and correct and is hereby confirmed. The amounts of the cost for abating the nuisance are confirmed and those remaining unpaid, as shown on Exhibit “A” attached hereto and incorporated herein, shall constitute special assessments against the respective parcels of land and are a lien on the property for the amount of the respective assessment. SECTION 2. All written or oral protests or objections to said report and assessment list are overruled or denied. SECTION 3. The unpaid assessments shown on Exhibit “A” shall be entered upon the 2012-2013 tax roll against the parcels of land and shall be collected at the same time and in the same manner as general City taxes, be subject to the same interest and penalties, and be subject to the same procedure and sale in case of delinquency. All laws and ordinances applicable to the levy, collection, and enforcement of City taxes are hereby made applicable to this special assessment. ** NOT YET APPROVED ** 120712 sh 8261911 2 SECTION 4. Santa Clara County has determined the weed abatement program to be categorically exempt from CEQA pursuant to CEQA Guidelines Section 15308. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ____________________________ ___________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ___________________________ Senior Deputy City Attorney City Manager ___________________________ Director of Administrative Services ___________________________ Fire Chief City of Palo Alto (ID # 2956) City Council Staff Report Report Type: Action ItemsMeeting Date: 7/23/2012 Summary Title: California Avenue Transit Hub Project Title: Approval of Detailed Sidewalk and Plaza Design for California Avenue Transit Hub Corridor Streetscape Improvements Project From: City Manager Lead Department: Planning and Community Environment Recommendation Staff recommends that Council approve the proposed California Avenue Transit Hub Corridor Streetscape project street alignment, including sidewalk widening and plaza design, and direct staff to continue the final design. Executive Summary The proposed California Avenue Transit Hub Corridor Improvements project provides for streetscape improvements along California Avenue between El Camino Real and the California Avenue Caltrain Station, including place-making identity markers, traffic calming treatments, streetscape elements, parking enhancements, and improvements to the Park Boulevard. The proposed street alignment responds to Council direction to staff to solicit community input on the design of the project to help develop a street configuration alternative that maximizes sidewalk widening and streetscape opportunities, introduces public plaza space, and preserves parking. The proposed street alignment in Attachment A balances sidewalk and streetscape opportunity areas evenly throughout the corridor, a goal of the Council to ensure equability in the implementation of improvements throughout the project area. Centered between Ash Street and Birch Street, a flexible public plaza space is proposed that can be sized to fit desired events of the community while preserving access from El Camino Real to sustain on-going business operations. The flexible plaza space also ensures that parking is preserved, so that a net increase of four parking spaces is realized. The Council also requested that the plan be further advanced to better integrate the Park Boulevard Plaza and California Avenue to ensure a cohesive environment to create and maintain a unique environment for visitors and residents of the California Avenue Business District. Staff believes this design and alignment responds appropriately to the Council’s desire. The Planning and Transportation Commission (PTC) recommended approval of the design at its July 11 meeting. The proposed street alignment introduces an additional cost of $700,000 to the original project estimate of $1.4 million cost, for a total of $2.1 million. Staff has identified an outside funding source (vehicle registration fees) to complete the project without further impacts to the City’s General Fund. The bulk of the project is to be funded by a grant from the Valley Transportation Authority (VTA). Background Following initiation of the detailed design phase, on February 14, 2011 the City Council requested that staff identify sidewalk widening and enhanced landscape opportunities along the California Avenue Business District corridor. In response to the request, the design team developed six concepts that included various street alignments that focused predominantly on landscape treatments between El Camino Real and Birch Street and presented them to the community and City Council for input on October 17, 2011. City Council reviewed the options and requested that additional emphasis on sidewalk widening and landscape treatments be incorporated between Birch Street and Park Boulevard to ensure a balance of enhancements along the corridor, and to better help tie the streetscape improvements with the planned treatments at the Park Boulevard Plaza. The City sponsored six design-focused community meetings following the Council’s request, focusing on creating a preferred street alignment so that the final civil design of the project may proceed. The community meetings yielded positive input to help the design team respond to the City Council request for additional treatments between Birch Street and Park Boulevard. Conceptual designs of the Park Boulevard Plaza were also proposed along with a preliminary selection of street furniture for the project, including benches, planting material, bike racks, and information kiosks. The proposed street alignment in Attachment A was presented to the PTC on July 11, 2012 with a recommendation by the PTC for Council approval of the preferred street alignment with additional elements discussed further in this report. The July 11, 2012 PTC staff report is provided in Attachment B and the PTC’s minutes are provided as Attachment C. At each community meeting and at the July 11th PTC meeting, participants also expressed both support and concern with the 4-lane to 2-lane reduction element of the project, though that issue was not the focus of the meetings. In particular, many merchants from the area expressed continued concern or opposition to this element of the design, though they generally noted support for the other streetscape elements of the project and plaza. Many of the participants also noted concerns with pavement condition along California Avenue due to delayed street resurfacing. A set of Frequently Asked Questions (FAQ’s) and responses for the project is included as Attachment D as further background for the project. Discussion The following sections of this report further discuss the refined street alignment plan of the project, funding status, and proposed next steps for implementation of the project. Staff believes that the preferred street alignment respsonds to the Council’s request for increased sidewalk and streetscape opportunities, blends both street and Park Boulevard Plaza elements of the project together, and adequetly preserves parking while introducing functional uses for public plaza and gathering space. Preferred Street Alignment Concept Input from most attendees at the community meeting expressed a general desire to implement sidewalk improvements as part of the California Avenue – Transit Hub Corridor Streetscape Improvements project along with other pedestrian-scaled improvements, such as enhanced mid-block crosswalks for speed reduction, bulb-outs at intersections to reduce crosswalk lengths, additional planting opportunities, and opportunities for additional loading zones for businesses along California Avenue. California Avenue currently does not have any defined commercial loading zones within the project area; the preferred street alignment introduces three loading zones, two near California Avenue & Ash Street and one California Avenue & Birch Street. The preferred street alignment also preserved the same number of transit stops along the corridor but recommends slight repositioning of some stops to minimize intrusion at intersections to help maintain intersection efficiency. The placement of streetscape furniture such as seating walls, benches, bicycle racks and corrals, tree and planting species, media racks and color palette selection will be identified through additional community outreach during final design. Final design cannot proceed without the selection of a preferred street alignment so that civil details such as drainage, irrigation, and street repair segments can be finalized. Street Alignment for Sidewalk Widening Options California Avenue has historically been a four-lane street. The current layout of the street consists of four travel lanes with widths that vary from between 9 feet and 11 feet and with 13 foot long angled parking stalls that do not comply with the City’s or industry-standard parking design standards of the Institute of Transportation Engineers. Non-standard parking standards should not be reintroduced with new construction. The preferred street alignment plan includes sidewalk widening elements throughout each block of the project, including opportunities for flexible public plaza space on the Avenue between Ash Street and Birch Street. The flexible plaza space includes sidewalks and street segments that merge together without obstructions from standard street curbs to maintain accessibility during special event use while protecting sidewalk zones through decorative bollards and removal parking blocks during parking use. This was a preferred treatment by the Planning & Transportation Commission during their July 11, 2011 meeting. Enhanced landscape treatment areas are also introduced throughout the corridor and tie in with planting material and public art elements (including the fountain at the Park Boulevard Plaza), and build upon current tree planting. Bulb-outs at mid-block crosswalk locations and key intersections will help to reduce the pedestrian walking distances along the roadway and introduce traffic calming treatments at the same locations; the use of treatments such as speed tables that double as traffic calming elements were also a request of the Planning & Transportation Commission. 1. Parking and Travel Lanes The proposed street alignment plan protects parking along California Avenue and introduces locations where existing angled parking is converted to parallel parking to allow for prominent sidewalk widening. The proposed street plan line concept provides 115 on- street parking spaces, compared to the existing 111 on-street parking spaces under the current street configuration, for a net increase of four spaces. Four additional on-street parking spaces near the Park Boulevard Plaza may be realized but will require support from Caltrain for the use of Joint Powers Board right-of-way as a long-term project element. Two 15-foot wide vehicle travel lanes with “Share the Road” (Sharrow) roadway markings would allow for comfortable travel between vehicles and bicycles. An aesthetic 3-foot wide decorative street band defines travel from parking areas and helps to provide additional buffer space between parked vehicles and vehicles/bicyclists traveling along California Avenue. The most prominent and continuous sidewalk widening segment occurs at each gateway entry of California Avenue, including the south side of the street between El Camino Real and Ash Street to provide a prominent gateway for visitors and in front of the Mollie Stone’s frontage at the east end of the project area to welcome visitors from Caltrain and Park Boulevard. During the concept design stage of the project, the community noted concerns regarding angled parking and bicycle operations near El Camino Real. The proposed street alignment converts the angled parking closest to El Camino Real to parallel parking in response to the concern and allows for a grander sidewalk treatment. The Planning & Transportation Commission asked that staff consider relocating the sidewalk widening near the west end of the corridor to the north side of the street instead of the south, but staff recommends preserving the design as currently proposed to support economic development opportunities with the existing uses clustered in that area. Maintaining the parallel parking along the south side between El Camino Real and Ash Street also supports a grand boulevard entry to the corridor setting the stage for a new street character that is supported with the remaining streetscape treatments of the plan. 2. Flexibility for Public Plaza The flexible plaza design between Ash Street and Birch Street is further defined in Attachment E showing block by block segments of the proposed street alignment. The flexible plaza space uses curbless transitions between sidewalks and the street to provide accessible space for special event uses, whether those be limited to the sidewalk and parking aisles areas or the entire street block through the use of removable bollards on the street. Although no specific on-going use is currently identified, the public plaza space can allow for larger events such as the Farmer’s Market or outdoor music events. California Avenue is already closed to traffic each Sunday for the Farmer’s Market and the new public plaza element of the project would allow the closure to expand or move east one block without obstruction of access to California Avenue from El Camino Real. The enhanced sidewalk widening treatments of the project allow events within the public plaza to expand throughout the corridor with the use of outdoor seating areas, booths, stages, etc. Park Boulevard Plaza The Park Boulevard Plaza design provided in Attachment F addresses a much of the public input received during two focused community design meetings, including:  Centering and buffering access to public art and fountain elements within the plaza to preserve views to the fountain as a focal element down California Avenue,  Providing ample useable seating areas for special plaza events or regular patron use,  Maintaining accessible bicycle access and parking adjacent to the California Avenue transit station and underpass,  Preserving an unobstructed view of the California Avenue streetscape and hills west of the project areas, and  Introduction of lighting improvements to the plaza The Park Boulevard Plaza element of the project revitalizes and improves functionality of the existing park space by creating a larger and more flexible use-space with ample seating and enhanced landscaping. A gathering area has been created by relocating the existing sculptural fountain into the project at the community’s request. The fountain would retain its visual prominence as a focal point at the terminus of the corridor and will be enhanced with interactive elements, thus activating the edge of the plaza space. All existing trees have been retained, with a grassy passive use zone provided under existing trees in the center of the space. Accent planting has been added at edges and to soften the tunnel access. Seating, low walls, planting and trees create visual edges that buffer the street for safety, while allowing visual access for security. Lighting would be added for safety. Bicycle use of the Park Boulevard Plaza continues to be a concern of the community and the Palo Alto Bicycle Advisory Committee, as the tunnel serves several hundred bicyclists daily during the morning commute periods. In response, the plaza design includes a widened bicycle- preferred use area that functions as a contraflow treatment to provide an unobstructed path out of the tunnel and back onto California Avenue or Park Boulevard. Entering the plaza, a share-the-road approach is provided with a separate access point designated only for bicyclists. The plaza will also house the new bicycle share facilities being deployed in 2012 as part of the Valley Transportation Authority-Metropolitan Transportation Commission partnership. Project Implementation The City anticipates continuing the design phase of the project through the Spring of 2013 upon approval of the preferred street alignment by the Council, to allow opportunities for additional community input and feedback by the Architectural Review Board, Public Art Commission and Parks & Recreation Commission, prior to final review by the Planning and Transportation Commission and Council. Planning and Transportation Commission Review and Recommendations Staff presented the preferred street alignment for the California Avenue Transit Hub Corridor Streetscape project to the Planning and Transportation Commission on July 11, 2012. The PTC unanimously (4-0) recommended approval of the plan to Council with the following additional recommendations:  Commercial Loading Zones Work with local area merchants to distribute new loading zones on the corridor near facilities that currently do not have access to loading zone areas on alleyways behind California Avenue.  Contraflow Bike Facility Provide a raised on-plaza contraflow bicycle facility to provide egress access from the California Avenue Underpass to the California Avenue & Park Boulevard intersection to help avoid bicycle and pedestrian interaction within the plaza itself.  Raised Mid-Block Crosswalks Provide raised mid-block crosswalks along California Avenue to both enhance pedestrian safety and reduce vehicle speeds on the street.  Public Plaza Space Protection Provide adequate treatments to protect sidewalk from parking uses in the public plaza areas (e.g., curb stops).  Parklets Explore the use of parklets to provide an opportunity for future land uses to take advantage of sidewalk widening opportunities where not currently defined in the proposed street alignment.  Angled versus Parallel Parking between El Camino Real and Ash Street Consider placing parallel parking and sidewalk widening on the north side of this block segment instead of the south to retain traffic flow from El Camino east on California Avenue. The location of commercial loading zones will be identified through the final design phase of the project and an on-plaza contraflow bicycle element to the Park Boulevard Plaza has been added in response to the community and PTC input. The raised crosswalks and public plaza space protection have also been added and are highlighted in Attachment E. Parklets are an effective way to allow for expansion of private use and the City’s staff will subsequently work on a policy to allow for their future use without impact to the project. Staff does not recommend shifting widening and parallel parking to the north side of the street between El Camino and Ash, as the widening on the south side would better support the level of activity in that block and to enhance the gateway treatment from El Camino. Trial Lane Reduction The PTC also recommended that the merchants and other community members propose a trial lane reduction and that staff consider the feasibility of implementation of the trial project, if it can be done without delaying project implementation and without jeopardizing grant-fund sources. Many of the merchants objected to the lane reduction and suggested a trial be implemented prior to final approval. The most simple and straightforward traffic trial would be to initially just pave and restripe the road to two lanes, but that would not be representative of the actual project, which would be affected by the sidewalk widening and bulbouts that further constrain street pavement width. Staff is concerned about the success of a trial for multiple reasons:  It is very difficult to replicate the aesthetic and safety treatments of the trial, including widened sidewalks, plantings, raised crosswalks, pavement treatments, etc.  A trial would require repaving and striping of the road (probably at a cost of $60,000 - $100,000) but then the permanent installation (if approved) would require repaving again only a year later;  A trial is likely to be unsightly, using temporary barriers and a less than high quality pavement, which could also be disruptive to business and confusing to drivers; and  The measures of “success” of a trial are likely to be contentious, as the perception of congestion or delay will be subjective to some, rather than relying on traffic engineering criteria. Staff would, however, work with merchants and the community to develop a trial if directed by the Council. Planning for Construction Mitigation for Businesses Upon approval by the Council of the sidewalk widening and plaza designs, staff will initiate final design of the project. Staff expects, during this phase, to schedule regular discussions with area merchants to explore ways to minimize impacts on business during construction (including occasional all-day on-site availability to meet with individual merchants about their particular interests or constraints). Some of the issues to be evaluated will include, but are not limited to: phasing of construction (block by block, side of the street, etc.), hours of construction, signage, access for loading/deliveries, access for customers, marketing assistance and publicity, and shuttle service to the street for construction workers and/or for customers. Staff attempted to initiate a discussion on these issues in March, but the meeting attendees (merchants) strongly felt that it was premature to discuss those details when they still oppose the lane reduction. Timeline The City anticipates continuing the detailed design phase of the project through the Summer of 2013 upon approval of the preferred street alignment by the Council, allowing opportunities for additional community input and feedback by the Architectural Review Board, Art Commission and Parks & Recreation Commission. The PTC and City Council would then review the final design for approval. The City anticipates construction in the Fall of 2013 upon the receipt of grant-fund sources. Resource Impact Funding for the design work is included in the Capital Improvement Program project PL-11002 – California Avenue Transit Hub Corridor Streetscape Project. The Council has approved the Capital Improvements Program (CIP) to fund the design phase and local match of the construction phase for the project in the amount of $550,000. Reinstatement of deferred grant funding from the Valley Transportation Authority in the amount of $1,175,000 is anticipated this Fall. The enhanced sidewalk widening and landscape elements of the project are estimated to cost an additional $700,000 above the original project estimate. The City has identified a fund source to cover the cost of the additional work through the new Vehicle Registration Fee (VRF) program that is being administered by the VTA. In 2010, voters in Santa Clara County approved a $10 per vehicle registration fee of which a population-based percentage is returned to each city within the County. The City of Palo Alto is scheduled to receive $350,000 per year the over next 2 years. The first disbursement of the VRF fee will be available this year. The City would bank its first year disbursement and use that in combination with the second year disbursement to cover the cost of the enhanced sidewalk widening and landscape treatments for the project. The remaining capital and design costs of the project remain available within the existing project budget. Additional funding will be required for the enhanced design elements, however. Staff will return to the Council in the Fall following approval of the new design to request up to an additional $100,000 for the design phase from the Infrastructure Reserve along with an amendment to the design contract with the RBF Consulting Design Team to complete the sidewalk widening design. Staff also expects that additional funding will be requested to provide for marketing and publicizing to assist businesses during construction of the project. Street lighting enhancements were requested by the community but are not currently budgeted within the current project. The City Capital Improvement Program (CIP) and Utility Department budget may be available resources for lighting improvements if desired by the Council as a future phased element of the project. Policy Implications The City’s Comprehensive Plan recommends that the City enhance the California Avenue streetscape by upgrading the visual quality of the street to attract additional business and visitors to the area. Consistent with those Comprehensive Plan goals, the proposed streetscape and place-making improvements along California Avenue should ensure continued vitality of the California Avenue Business District. The Comprehensive Plan also encourages a mix of residential and non-residential uses at a scale of development that is comfortable for pedestrian use. The Plan encourages improving the appearance of the street while preserving its “home town” character. Also, Program L-18 specifically calls for street improvements that could make a substantial contribution to the character of Commercial Centers, including narrowing travel lanes. Environmental Review A preliminary Initial Study and the Negative Declaration - CEQA checklist for the project were completed, circulated for public review in December 2010 and approved by Council on February 14, 2011. Litigation challenging the timing of that review was filed shortly thereafter, and the Santa Clara County Superior Court ruled in Fall 2011 that the City should have completed CEQA review prior to submitting the application for VTA grant funds. The City corrected this by rescinding and reapproving the environmental review and associated approvals in the proper order. In February 2012, the Court found that the City complied with CEQA. A second lawsuit was filed in January 2012 challenging the city’s revised approvals, which the court dismissed in its entirety in April 2012. The City is now in compliance with CEQA and is free to proceed with the project. The Negative Declaration concluded that the project will not result in any significant environmental impacts and may be reviewed online at www.cityofpaloalto.org/calave. Attachments:  Attachment A: Proposed Alignment and Design for Sidewalk Widening and Plaza (PDF)  Attachment B: July 11, 2012 Planning and Transportation Commission Staff Repo (PDF)  Attachment C: July 11, 2012 Planning and Transportation Commission Draft Excerpt Minutes (DOCX)  Attachment D: Frequently Asked Questions (FAQ's) for California Avenue Streetscape Improvements Project (DOCX)  Attachment E: California Avenue Proposed Design by Block Segments (PDF)  Attachment F: Draft Design of the Park Blvd. Plaza (PDF)  Attachment G: Correspondence (PDF) Prepared By: Shahla Yazdy, Traffic Engineer Department Head: Curtis Williams, Director City Manager Approval: ____________________________________ James Keene, City Manager • l~ "" "I'" .5 ~ " ~ ~ ~ ~ ~ :() 3: :2 u ~'il ~ ~ r z '" " I _ 0 r Hd lin d Ulil I( I I e li ~ 1 Ii j I 1 I I I f 1 1 j • • ~,~ .•.. " ....... ~ ~ 1""11""",,0:> 13 .' ---.'" .: ,-_ .. r ~ • :..;.;; City of Palo Alto Page 1 of 6 PLANNING &TRANSPORTATION DIVISION STAFF REPORT TO: PLANNING & TRANSPORTATION COMMISSION FROM: Jaime O. Rodriguez DEPARTMENT: Planning and Chief Transportation Official Community Environment AGENDA DATE: JULY 11, 2012 SUBJECT: California Avenue Transit Hub Corridor Streetscape Improvements Project – Design Status RECOMMENDATION: Staff recommends that the Planning and Transportation Commission provide input to Council on the design status, location of proposed sidewalk widening areas and plaza design for the California Avenue Transit Hub Corridor Streetscape Improvements Project. BACKGROUND City staff and consultants continue to develop the detailed design options for the California Avenue – Transit Hub Corridor Streetscape Improvements project. In the Fall 2010 the City submitted and received a grant from the Valley Transportation Authority (VTA) – Community Design for Transportation (CDT) Program for the project in the amount of $1,175,200. A design contract was awarded to the RBF Consulting/David Gates & Associates design team in July 2011. Following initiation of the detailed design phase, on February 14, 2011 the City Council requested that staff identify sidewalk widening and enhanced landscape opportunities along the California Avenue Business District corridor. In response to the request, the design team developed six concepts that included various street configurations, but focused predominantly on landscape treatments between El Camino Real and Birch Street, and presented them to the community and City Council for input on October 17, 2011. City Council reviewed the options and requested that additional emphasis on sidewalk widening and landscape treatments be placed between Birch Street and Park Blvd. to better help tie the streetscape improvements with planned treatments at the Park Blvd. Plaza. The staff report and minutes of that meeting are included as Attachment A to this report. The City held two additional community meetings in response to City of Palo Alto Page 2 of 6 this request, including one citywide meeting and one business focused meeting. A set of Frequently Asked Questions (FAQ’s) is provided for further information about the project (Attachment D). DISCUSSION The proposed California Avenue Transit Hub Corridor Streetscape Improvements project provides for streetscape improvements along California Avenue between El Camino Real and the California Avenue Caltrain Station; including place-making identity markers, traffic calming treatments, streetscape elements, parking enhancements, bike sharing stations, improvements to the Park Blvd. Plaza, and a reduction from four lanes to two lanes of travel. City staff and the design team have sponsored six design-focused community meetings to date. The first meeting, held on September 1, 2011, was an opportunity for merchants and property owners of California Avenue to meet with the design consultants and staff. Staff has held 5 additional meetings soliciting input on street configuration opportunities to introduce sidewalk widening and enhanced landscaped treatment opportunities, as well as meetings focused on the design of the Park Blvd. Plaza. The meetings yielded positive input to help the design team respond to the City Council request for additional treatments between Birch Street and Park Boulevard. Conceptual designs of the Park Boulevard Plaza were also proposed along with a preliminary selection of street furniture for the project, including benches, planting material, bike racks, and information kiosks. Meeting participants also expressed both support and concern with the lane reduction element of the project, though that was not the focus of the meetings. In particular merchants from the area expressed continued concern or opposition to this element of the design. Staff noted that the potential environmental impacts of this project were analyzed in the Negative Declaration, which concluded that a lane reduction would not have a substantial impact on traffic flow or parking. Many of the participants also noted concerns with pavement condition along California Avenue due to delayed street resurfacing. The following sections of this report further discuss the refined street alignment plan of the project, funding status, and proposed next steps for implementation of the project. Preferred Design Input from most attendees at the initial community meeting showed a general desire to implement certain sidewalk improvements as part of the California Avenue – Transit Hub Corridor Streetscape Improvements project along with other pedestrian-scaled improvements such as enhanced mid-block crosswalks for speed reduction, bulb-outs at intersections to reduce crosswalk lengths, additional planting opportunities, and opportunities for additional loading zones for businesses along California Avenue. Community input also helped to refine the design of the Park Boulevard Plaza. Additional areas of interest, but not currently funded within the project, include lighting improvements along California Avenue. At the October 17, 2011 meeting, Council asked staff to incorporate the following into the design:  Add more sidewalk widening/landscaping towards the eastern project limits  Project design should not result in a loss of parking spaces (not a Council consensus) City of Palo Alto Page 3 of 6  Expand on Public Street Plaza concept to provide for gathering opportunites Staff believes that the preferred alignment respsonds to the Council’s direction. Street Alignment for Sidewalk Widening Options California Avenue has historically been a four-lane street. The layout of the street consists of four travel lanes with widths that vary from between 9 feet and 11 feet and with 13 foot long angled parking stalls that do not comply with the City’s or industry-standard parking design standards of the Institute of Transportation Engineers. The detailed design prepared in response to the City Council request with community input is provided in Attachment B. The street plan line concept includes sidewalk widening elements throughout each block of the project, including opportunities for flexible public plaza space on the Avenue between Ash Street and Birch Street. Enhanced landscape treatment areas are introduced throughout the corridor and tie in with planting material and public art elements (including the fountain) used within the Park Boulevard Plaza, building upon existing tree planting along the corridor. Bulb-outs at mid-block crosswalk locations and key intersections help to reduce the pedestrian walking distances along the roadway and introduce traffic calming treatments at the same locations. 1. Parking and Travel Lanes The street plan line concept protects parking along California Avenue and introduces locations where existing angled parking is converted to parallel parking to allow for sidewalk widening and to respond to community concerns regarding visibility related to backing out of angled parking spaces. The proposed street plan line concept provides 115 on-street parking spaces, compared to the existing 111 on-street parking spaces under the current street configuration, for a net increase of four spaces. Two 15-foot wide vehicle travel lanes with “Share the Road” – (Sharrow) roadway markings provided allow for comfortable travel between vehicles and bicycles. The travel lane is also separated by a 3 foot wide decorative street band that allows for additional buffer space between parked vehicles and vehicles/bicyclists traveling along California Avenue. 2. Flexibility for Public Plaza The design between Ash Street and Birch Street introduces flexibilty for large public gathering events such as Farmer’s Markets or outdoor music events, through the use of removable street barriers and/or continuous street to sidewalk treatments. California Avenue is already closed to traffic each Sunday for the Farmer’s Market and the new public plaza element of the project would allow the closure to move east one block without obstruction of access to California Avenue from El Camino Real. The enhanced sidewalk widening treatments of the project allow events within the public plaza to expand throughout the corridor with the use of outdoor seating areas, booths, stages, etc. Park Boulevard Plaza The design provided in Attachment C addresses a majority of the public input received in two focused community design meetings including centering and buffering public access to public art and fountain elements within the plaza, plenty of useable seating areas, accessible bicycle access and parking adjacent to the California Avenue transit station and underpass, an unobstructed view of the California Avenue streetscape and hills west of the project areas, and the introduction City of Palo Alto Page 4 of 6 of lighting in the plaza. The California Avenue plaza concept revitalizes and improves functionality of the existing space by creating a larger, flexible space with ample seating and enhanced landscaping. A gathering area has been created by relocating the existing sculptural fountain. The fountain would retain its visual prominence as a focal point at the terminus of the corridor and will be enhanced with interactive elements, thus activating the edge of the plaza space. All existing trees have been retained, with a grassy passive use zone provided under existing trees in the center of the space. Accent planting has been added at edges and to soften the tunnel access. Seating, low walls, planting and trees create visual edges that buffer the street for safety, while allowing visual access for security. Lighting has also been added for safety. The proposed circulation pattern also would reduce the conflicts between the bikers and pedestrians. Bicycle parking remains, while visual clutter created by bicycle lockers has been reduced. Project Funding Status The City created a Capital Improvement Program (CIP) project in the amount of $1,725,000 to cover the costs of the project, including the reimbursable Valley Transportation Authority (VTA) grant, and the local city match for the project and design costs. The enhanced sidewalk widening and landscape elements of the project are estimated to cost an additional $700,000 above the original project estimate. The City has identified a fund source to cover the cost of the additional work through the new Vehicle Registration Fee (VRF) program that is being administered by the VTA. In 2010 voters in Santa Clara County approved a $10 per vehicle registration fee of which a population-based percentage is returned to each city within the County. The City of Palo Alto is scheduled to receive $350,000 per year the over next 2 years. The first disbursement of the VRF fee will be available this year. The City would then bank its first year disbursement and use in combination with the second year disbursement to cover the cost of the enhanced sidewalk widening and landscape treatments for the project. The remaining capital and design costs of the project remain available within the existing project budget. Additional funding will be required for the enhanced design elements, however, Staff will return to the Council in the fall following approval of the new design to request up to an additional $100,000 for the design phase from the Capital Improvement Program – Reserve Fund. The City was awarded a $1,175,200 grant from the VTA in early 2011; however that funding had to be deferred due to litigation over the environmental review which was recently resolved. Staff expects that grant funding from the VTA - CDT program may be available for use by the City as early as Summer of 2013 following approval of funding source requirements identified by the VTA. Project Implementation The City anticipates continuing the detailed design phase of the project through the Spring 2013, to allow opportunities for feedback by the Architectural Review Board and Parks & Recreation Commission for the design of the Park Boulevard Plaza. City of Palo Alto Page 5 of 6 Pending reinstatement of grant funding for the project this fall and completion of the design phase by the Spring 2013, the City anticipates advertising the project for competitive bids in the Summer 2013 with construction beginning in the Fall 2013. RESOURCE IMPACT: Funding for the design work is included in the Capital Improvement Program project PL-11002 – California Avenue Transit Hub Corridor Streetscape Project. The Council has approved the Capital Improvements Program (CIP) to fund the design phase and local match of the construction phase for the project in the amount of $550,000. Reinstatement of deferred grant funding from the Valley Transportation Authority in the amount of $1,175,000 is anticipated this fall. The sidewalk elements of the detailed design will require an additional $700,000 capital cost above the original project budget. The City has identified an outside fund source for the project through the County Vehicle Registration Fee program. Staff anticipates allocating the funding to the project as part of the FY2014 CIP Process. An amendment to the design contract with the RBF Consulting Design Team will also be required in the amount of $100,000 to complete the sidewalk widening design. Staff also expects that an additional funding will be requested to provide for marketing and publicizing to assist businesses during construction of the project. Street lighting enhancements were requested by the community but not currently budgeted within the current project. POLICY IMPLICATIONS: The City’s Comprehensive Plan recommends that the City enhance the California Avenue streetscape by upgrading the visual quality of the street to attract additional business and visitors to the area. Consistent with those Comprehensive Plan goals, the proposed streetscape and place-making improvements along California Avenue should ensure continued vitality of the California Avenue Business District. The Comprehensive Plan also encourages a mix of residential and non-residential uses at a scale of development that is comfortable for pedestrian use. The Plan encourages improving the appearance of the street while preserving its “home town” character. Also, Program L-18 specifically calls for street improvements that could make a substantial contribution to the character of Commercial Centers, including narrowing travel lanes. ENVIRONMENTAL REVIEW: A preliminary Initial Study and the Negative Declaration - CEQA checklist for the project were completed, circulated for public review in December 2010 and approved by Council on February 14, 2011. Litigation challenging the timing of that review was filed shortly thereafter, and the Santa Clara County Superior Court ruled in Fall 2011 that the City should have completed CEQA review prior to submitting the application for VTA grant funds. The City corrected this by rescinding and reapproving the environmental review and associated approvals in the proper order. In February 2012, the Court found that the City complied with CEQA. A second lawsuit was filed in January 2012 challenging the city’s revised approvals, which the court dismissed in its entirety in April 2012. The City is now in compliance with CEQA and is free to proceed with the project. The Negative City of Palo Alto Page 6 of 6 Declaration concluded that the project will not result in any significant environmental impacts and may be reviewed online at www.cityofpaloalto.org/calave. Prepared by: Shahla Yazdy Project Manager Reviewed by: Jaime O. Rodriguez Chief Transportation Official Department/Division Head Approval: Curtis Williams, Director Attachment A: October 17, 2011 Council Staff Report & minutes Attachment B: Draft Alignment and Design for Sidewalk Widening options Attachment C: Draft Design of the Park Blvd. Plaza Attachment D: Project Frequently Asked Questions (FAQ’s) 1 Planning and Transportation Commission 1 Verbatim Minutes 2 July 11, 2012 3 4 DRAFT EXCERPT 5 6 California Avenue – Transit Hub Corridor Streetscape Improvements Project: 7 Recommendation Regarding the California Avenue Transit Hub Corridor Streetscape Project 8 including design status, location of proposed sidewalk widening opportunities, and plaza design. 9 10 Acting Chair Fineberg: So we are ready to open our Public Hearing. We have one item on our 11 agenda which is the California Avenue Streetscape Improvement Project. I’d like to start by 12 announcing that Commissioner Tuma is not present this evening because he is conflicted out of 13 participating in this project due to having a long term lease on California Avenue. We’ll start 14 this item with Staff’s presentation to be followed by Commissioner questions of the Staff, then 15 we’ll bring it back to public comment with three minutes per speaker and after that we’ll have 16 Commissioner discussion, motions, and recommendations. We’ll now hear the presentation 17 from Staff. 18 19 Curtis Williams, Planning Director: Thank you Chair Fineberg and Commissioners. I’m Curtis 20 Williams, Director of Planning and Community Environment, and we do note that there are but 21 four of you tonight, which is enough for quorum, but certainly less than whole Commission. 22 Your newest Commissioner to be is in the audience tonight, but is not able to join the full 23 Commission until August 1st so he’ll get educated before then about what’s going on here. And 24 just maybe to preface this I know the Chair did send an e-mail a little while ago about the fact 25 that there are only four of you so it does take three members to vote for an affirmative vote on 26 any action this evening and you have basically two actions before you, this and the minutes. 27 28 So we’re, we are here tonight to talk about the California Avenue Transit Hub Corridor 29 Streetscape and Improvement Project. Commission has seen this at least once previously but not 30 in a while and I’m gonna run through a little bit of background and context for you on the project 31 then turn it over to Jaime Rodriguez and our consultants to walk through the details of the 32 proposed design. 33 34 So the, the stated vision for the street, and this is largely language that comes from our, derived 35 from our Comprehensive Plan and City’s certainly recently, is consistent with our recent 36 adoption of the Bike and Pedestrian Plan, is to promote pedestrian bicycle safety, to complement 37 the adjacent land uses, provide for amenities on the sidewalk for pedestrians and cyclists and 38 others, to try to balance the needs of all modes of travel, the complete street concept, 39 implementing Comprehensive Plan and our pedestrian transit oriented development objectives. 40 The Comp Plan does call for pedestrian connections and encourage walkability for the California 41 Avenue area and it defines Pedestrian Transit Oriented Development (PTOD), or actually transit 42 oriented residential in the Comp Plan and then more specifically the PTOD and the zoning 43 ordinance as appropriate for this area to generate higher residential density supporting transit use, 44 especially Caltrain and walking. 45 46 Attachment C 2 The Complete Streets concept is one we’ve also discussed before this is something that actually 1 is now embedded in State law and cities are supposed to be developing Complete Streets 2 Programs in their Comprehensive Plan. Our Transportation Element is now under review by 3 Commission subcommittee and will be coming shortly to the full Commission and will embody, 4 be sure that we’re including these various concepts in there. So the intent of the Complete 5 Streets Program is to make the most efficient use of the right of way for all modes of travel and 6 in particular for this proposed project we do want to maintain efficient vehicle movements and I 7 know that there are concerns about the four lane to two lane issue, we have we believe addressed 8 those in that we will be maintaining vehicle movements as well as accommodating room for 9 pedestrians and bicyclists, various pedestrian improvements, amenities, as we’ve discussed 10 landscaping, trees, benches, parking for bicycles, perhaps some art, more public art, and outdoor 11 entertainment areas, etcetera, etcetera, and just generally improving the pavement aesthetics 12 along the street as well. 13 14 So in just a second I’ll turn it over to Jaime to walk through the specifics with you. I did want to 15 make a couple other comments. One is that as you know the California Avenue Fry’s Concept 16 Area Plan is under development at this time as well. You have seen a version of that some time 17 ago but you will be seeing it again in the fall and sort of preferred, or a couple of preferred 18 alternatives for that. We do believe that this, that regardless of what happens in that plan that 19 this is an appropriate treatment of California Avenue that we do believe that the, you know, the 20 attractiveness of the street and its potential to become a real corridor for pedestrians and in 21 particular to access the businesses as well as to access the train station and for community events 22 are all appropriate regardless of what happens in the rest of that development area. 23 24 Secondly, I also want to indicate that what you’re looking at tonight as Jaime will explain are 25 specific to direction from the Council to look at sidewalk widening options and potential plaza 26 improvements. So, we, there are a lot of design details that are still to come as far as where 27 landscaping goes, what kind, where benches are, and bike racks or trash receptacles, everything 28 else. But the other thing that’s certainly out there and we’re aware of is our commitment to 29 transition plan during construction to work with the merchants to be able to try to find a variety 30 of ways to help minimize impact during construction. We know that’s a very serious issue and 31 there are ways to phase project construction, ways to help with the marking of the business on 32 the street, assuring deliveries, both business deliveries and access for customers. All of those 33 things are items we have to deal with and take very seriously. I think the, you know, we’re not 34 probably at the point yet where we can have real detailed discussions of that and we’re trying to 35 nail down some of this design to move forward but we are prepared to have those discussions 36 once we do get to the next phase of the design. So with that I’ll turn it over to Jaime Rodriguez 37 our Chief Transportation Official. Thank you. 38 39 Jaime Rodriguez, Chief Transportation Official: Thank you Curtis. Chair Fineberg, Members of 40 the Commission, I’m glad to be here tonight. It’s been awhile I think since I’ve been to your 41 Commission and actually this is the first time that I think I’ve been here presenting this project to 42 you as well. Before I do get started though I do just want to take a minute to recognize some of 43 the members of the consultant team here, to my right is David Gates from David Gates and 44 Associates, as well as Kadnee Bahmani from RBF Engineers sitting in the back. They can 45 provide some technical information regarding the civil design of the project. I also do want to 46 3 take a moment just to recognize the work from some of the Transportation team members, 1 specifically Shahla Yazdy, the Project Manager for this project but she couldn’t be here tonight 2 being on vacation. So with that let’s just jump straight into the project. 3 4 So again where we’re looking at a transit streetscape focus type project on California Avenue, a 5 proportion of California Avenue between El Camino Real shown here where the cursor is on the 6 screen to the Caltrain, to the Park Boulevard Plaza near the Caltrain Station at California 7 Avenue. So this segment of California Avenue is the study area. It is worth just taking a 8 moment to kind of really recognize how much kind of effort has been put into this project. You 9 know this has been ongoing now for a little over a year and a half almost two years since we 10 kicked off the design effort now and one of the very first things we did when we awarded this 11 project with Council approval was Council asked us to really try and expand the project to 12 introduce additional sidewalk lighting opportunities, to introduce opportunities to provide more 13 streetscape elements for the corridor as an enhancement to the project. And upon selecting RBF 14 for this, for this team design we actually asked them to put together up to five different options 15 for us to then take back to the Council so that we could refine a preferred street alignment 16 because we can’t move forward with the civil design until we know what we want to build to. 17 And we also asked RBF to put together in conjunction with that street alignment concepts for 18 what the Park Boulevard Plaza could be. 19 20 And we held several community meetings over the last year and a half to help us try to figure out 21 that vision for the Council to consider and we will walk you through shortly all those previous 22 options that the Council saw and then kinda walk you through how we ended up with the 23 preferred alignment that we’re presenting to you here tonight. There are still of course a whole 24 lot of details that need to be worked out with the plan as Curtis mentioned and we do have a lot 25 more community meetings that we need to have. In addition to more merchants specific-26 meetings we also then need to get out and kinda reach to the other commissions, the 27 Architectural Review Board (ARB), the Parks and Recreation Commission, Palo Alto Bicycle 28 Advisory Committee (PABAC) has been useful in providing input on this project to date and he 29 has been a key stakeholder in helping us design the Plaza that you’ll see shortly as well as the 30 Art Commission. 31 32 So again, as a quick background the main elements that are really here to solicit your input on 33 tonight are the sidewalk lighting elements that we are recommending in response to the City 34 Council’s request to help expand the project and make it a little more whole and provide that 35 complete street vision that we see for the area. Now we also then also want to talk a little bit 36 about the Plaza and make sure that from your opinion we’re kinda taking this project in the right 37 direction as well. 38 39 So, let’s just talk about what’s on California Avenue today. What’s on this next slide is what 40 California Avenue looks like from an aerial view. Again, it is predominantly angled parking on 41 the street today, a majority standard 60-degree parking as well as some more acute parking down 42 closer toward the California Avenue end of, I’m sorry, El Camino Real Avenue end of the 43 corridor getting closer to about, you know, 45 to 55 degree angle parking. And, and not a lot of 44 green as you kinda see here, not a lot of trees, not too many like, public spaces for people to 45 kind of do outdoor dining those types of activities. And as a typical cross section of the street 46 4 you do have existing 10 foot wide sidewalks, angled parking varies between 13 degrees to, I’m 1 sorry, 13 feet to 15 feet depending on the angle again, 60 degree or something lower than that. 2 And there are four lanes of travel on El, on California Avenue today. And the on street parking 3 count throughout the corridor is 111 on street parking spaces. 4 5 When we went to the Council late last, early last year, we really showed them five options to 6 help us kind of guide what the vision for California Avenue could be and what I want to do very 7 quick is kinda walk you through those five options that they and the community saw. And one 8 option was just the street conversion of the corridor from angle parking to parallel parking. That 9 is probably the most intrusive thing you could do to parking because you really reduce the 10 parking space on the street by, you know, taking two or three cars that are the equivalent of one 11 car length and turning it into one space. But as you can see from this diagram here, we introduce 12 a lot of green areas, we introduce a lot of opportunities to do sidewalk widening, that green area 13 represents opportunities for sidewalk widening or opportunities for planting and other types of 14 streetscape treatments. A typical cross section for this type of a street configuration is shown 15 below and it provides a pretty consistent kind of goal that we had at Staff level to provide, you 16 know, fairly comfortable wide 15 foot lanes for vehicular travel. There’s a pretty standard eight 17 foot wide parking, parking configuration and then provides some kind of aesthetic treatments 18 with a pavement band to separate that parking use from the vehicle use but you see here again 19 the widened area and how it serves to provide outdoor streetscape type of amenities and 20 treatments or just in general kind of green treatments. 21 22 I should go back and just point out that under this type of a configuration there is a significant 23 parking impact of a reduction of about 37 spaces on the street and also includes a higher cost of 24 an additional $1.2 million to do this type of configuration because you’re building all the 25 sidewalk. We also looked at an option that was just all angled parking and we basically 26 maintained all the existing parking in its current configuration but to a current parking standard 27 and ended up with a parking neutral solution. Had some really nice green space opportunities 28 and it had a cost of about $700,000. And again below is a cross section of what that option looks 29 like. 30 31 We also looked at a hybrid option just trying to find the best areas to maximize for sidewalk 32 widening elements and planting tree opportunities proposed a hybrid concept that, that actually 33 added space, that says parking lot, so that’s actually a parking gain and it would cost a little 34 under $700,000 to implement. We also looked at, tried to do things that were kinda outside of 35 the box. You know we looked at concepts for what we’re calling a central plaza configuration, a 36 central plaza configuration looked at just providing green space opportunities through the center 37 of the core between Ash and Birch to do things like, you know, special events you know either 38 on an ongoing basis, permanent basis, or you know to provide on a seasonal use and that again 39 had no parking impact and had a cost of about $1 million. 40 41 This was actually one of the elements that the City Council had an interest in, they liked the 42 concept of that public plaza kind of public space usage, but did note that there was a pretty 43 significant parking impact with an option like this. We also looked at trying to implement those 44 visions for, for plaza kind of treatment areas, but on a seasonal basis only and shown here in 45 purple are areas where you could cone off or kind of barrier off parking aisles and create them 46 5 for public use, you know, for restaurant uses for public space on weekends those types of events 1 and that parking impact it would depend on what you did. If you, if you left all that space open 2 and weren’t taking advantage of that you’d have a parking surplus of 25 spaces, but if you were 3 taking all away then you take away, you know, about 40 spaces, and, but as you see there’s a 4 vision down here you gain a lot of public pedestrian use on both sides of the street. This was an 5 option again that the City Council did have a lot of strong interest in, but noted that if you looked 6 to the east of Birch there wasn’t a lot of activity happening as far as sidewalk widening 7 opportunities, planting kind of treatments, or streetscape amenities and thought that it lacked 8 kind of work on the east side of the corridor. 9 10 The last thing that we showed the Council was based off the previous presentation of this, of 11 those same five options combining community input, what the community told us that they liked 12 of all the previous five options and we showed them what was called kind of the community 13 input modified hybrid option. And this alternative tried to take the elements of things that people 14 liked the most and introduce them. One of the most significant issues here was the introduction 15 of parallel parking just on the first block of California Avenue between El Camino and Ash on 16 the south side. The predominant restaurant use of the corridor and this provided a net gain of 17 about 10 spaces at a cost of about $700,000. Again, strong interest by the City Council but as 18 you can see on this diagram not a lot of green improvement to the east of Birch Street and they 19 thought that because there was a lacking, a lacking vision. 20 21 So we’ll show you kind of where we ended up and I want to kind of walk you through the rest of 22 the public input process first also. So on the plaza we developed three options for the plaza. I’m 23 not gonna walk you through all the details here, we’re just gonna highlight for you what the 24 community input was. Really one that they did like kind of this option down towards the bottom 25 which was what we’re calling a curvilinear option that had more kind of aesthetic elements kind 26 of embedded within the plaza itself. They liked the concept of taking the location of the fountain 27 and kinda an art piece and kinda moving it a little bit more into the plaza so that the element 28 wasn’t too close to California Avenue or Park to allow people to kind of really use that and they 29 can enjoy the fountain without being close to moving vehicles. They did like the idea of kind of 30 providing more stones and seating to enjoy the fountain and other uses on the plaza. They 31 wanted to make sure that there was recognition and encouragement of bicycle use within the 32 plaza itself and that we weren’t restricting vehicles, bicyclists from kind of getting into the plaza 33 because bicyclists are one of the most predominant uses of that plaza every morning for 34 commute activities as well as coming home from school or coming home from work and so that 35 was a concern we had to respond to. 36 37 There was a strong statement from a lot of people that they just didn’t want this to be a Lytton 38 Plaza, they didn’t want to, they wanted it to be something a lot more different and that was a lot 39 more vibrant. They did like the opportunity of being able to use that plaza for seasonal uses such 40 as holiday trees during the holiday season, for gaming events during the day during lunchtime 41 breaks for people that work in that area, and more importantly that we provided good lighting 42 and tried to actually mask as much as possible the Caltrain facility. 43 44 So, here’s what we came up with in response to the community input and the City Council 45 request for more sidewalk widening options. This plan here shows in green the areas that are 46 6 added on top of the previous designs, so if you’re focusing a little bit kind of to the east of Birch 1 you see a lot of green added along the north side of California Avenue, which is the locations 2 where they can be now sidewalk widening, more planting material added, your also seeing the 3 maintenance of that parallel parking opportunity, some more, some more streetscape treatments 4 near El Camino Real a while before Birch. And you’re also seeing the introduction of the 5 maintenance of that seasonal barrier because again there was a strong interest by the Council to 6 have that ability to be able to during peak seasons such as spring and summer to be able to take 7 away some of the parking with community support and do more uses that are pedestrian and 8 bicycle focused in those areas. And this option here still has a gain of about 4 spaces during non-9 peak season, non-seasonal use of those barrier uses. Again a typical cross section is angled 10 parking because a lot of angled parking is maintained, but on one side of the street or another 11 you are adding some type of a sidewalk widening treatment element and this next image this is a 12 very quick transition if you want to pay attention. This shows all the green along the whole 13 corridor. So what you’re seeing now is you’re seeing all that kind of sidewalk widening and all 14 that planting opportunity that the Council asked us to kind of scatter throughout the corridor. I 15 think we did a pretty good job of clustering it here in the middle to support those kind of plaza 16 uses that the Council thought was important and then also kind of expand that kinda to both ends 17 of the corridor to provide opportunities to make statements for the community that there is an 18 identity area here occurring. And so with that I’m gonna let David, kind of, Gates walk you 19 through kind of some of the more specific details of the corridor and then I’ll bring it back and 20 close it out for us. 21 22 David Gates, Consultant: Thank you Jaime. Dave Gates, thank you for having me here tonight. 23 What I’d like to do is just kind of give you a little bit of sense of the vision as its drawn there to 24 get the cost estimate we actually took it down to paving patterns and seed walls and relocation of 25 bike racks and bike corrals and just to put it in context with the good community meetings it’s 26 actually a well-used part of the community. The public is very proud of it. It’s a little quirky 27 and it’s actually a very nice piece of urban design right now in that, you know, from Cambridge 28 down you have structured parking and you have alleyways to parking behind. So it’s actually a 29 very functional retail kind of place right now, so we’re hoping we’re making it more usable that 30 way. 31 32 So what you’re seeing here, and I’m just going to take you from west to east from El Camino, 33 you can see that the additional paving area is in that sort of sand color, so we’re getting a much 34 wider sidewalk all along, especially the south side. You can see the large green trees are new 35 trees versus the smaller green are existing which we’re preserving most of. So you can see the 36 little small squares there, maybe I can help here. That’s ok. So we’re getting additional seating, 37 we’re getting trees, we’re getting widened paving as per the Jaime showed you this cross section, 38 we’ve got existing bike racks, we have existing art. You can see the new trees. So, in all cases 39 here we’re gaining vitality, we’re gaining better pedestrian character, we’re gaining more 40 aesthetic usability, we’re shortening the crossing at T-intersections like Ash Street. We’re 41 getting a lot more greenery and vegetation which will help traffic calm by just scaling down the 42 street creating a little more shade. Moving then east, oops, sorry, I’ll let Jaime do it. So 43 basically this shows you a typical cross section not at a cross walk with a bulb out. It shows you 44 what we can gain typically along this entire zone. We’re basically gaining a planting area and/or 45 7 a seating area and you can see the nature of that and we’ll take it in key areas and put in 1 vegetation and other areas we make greater usability and a wider sidewalk. 2 3 This is just moving you down now between Ash and Birch. The sort of central zone if you will. 4 Again we’re getting additional planting, we’re pinching the street, relocated art elements, you 5 can see the rumble strip or that three foot band that actually separates the parking from the basic 6 bike circulation and the autos. Large area here of new paved area, great outdoor use space, you 7 can see the newspaper racks, the bike racks, the relocated art. This intersection gets a lot of new 8 vegetation, really show it down considerably and then you can see here again more paving 9 added, more greenery to the outer edge, reconfigured new median zone. Next image. There’s 10 the cross section at a bulb out, so we’ll actually get 12 feet of usable and then 14 more feet, 11 which again allows us to pull the tree out into center, kind of pinch down the sense of pavement 12 get a lot more shade and you can see in spades how we have that here with really nice bulb-out 13 and again we have T-intersections where we’re teeing in and getting a lot of greenery and 14 pavement. Next image then. 15 16 Just moving again, this is the central core and this is an optional where you can actually put in 17 bollards between Birch Street and block off the street, block off Ash again, and basically have a 18 farmer’s market or a large event space that could happen at key times. And again you can see 19 the great crossing, the plantings at the crossing to identify them. These will be enhanced 20 payment at all street crossings and we’re trying to look at a pattern in here to make this feel a 21 little less street like and a little more plaza like for when it’s blocked off. And you can see we 22 already have Starbucks. We already have an existing usable zone here we’re expanding and 23 adding on to. Next image. 24 25 These are just some of the components, these bollards, these are art pieces. I can’t guarantee we 26 will do this right now, but a simple way to get the local art community, this is very involved out 27 there now, these are just simple galvanized bollards with the fabricated art piece on top of it 28 which we’ve done on other projects, so it just shows you this very nice potential central blocked 29 off core. 30 31 Next image is just moving you easterly again. More of the same. You can see the enhanced 32 sidewalk, you can see the crosswalk. A tee intersection with a lot of vegetation again, shortening 33 the crossing, slowing the car, lots of additional paving on the far side in front of Mollie Stone’s 34 you know again pinching, highlighted cross walks with a lot of vegetation. Next slide then I 35 think will, ok then these are the pieces that the enhanced components that you’ll see in response 36 to the comments that we got from the Council you’re seeing the different pieces that we added 37 between the hybrid and this scheme which Jaime went over. This is the plaza itself. Jamie 38 covered a lot of this, but I think things that are working well here there is a sculpture being 39 commissioned right now to replace what’s out there, the comment was to create a large multiple 40 use space, have the fountain/water element/sculpture be an edge of that at a focal point that’s 41 highly visible as you look down to the east on Cal Ave it becomes the eye stop. You see the 42 holiday tree. We preserved the existing pastiche and actually added another line to sort of give a 43 better edge and it got a landscaped green and tree edge around the entire plaza so that it 44 contained so kids don’t get out on the street but keeping the visibility forced we’ve got shared 45 shade structures, we’ve got game activities, we have a bike lane that takes you out so that as you 46 8 come through the tunnel and you can come out and not have to cut through so there’s a reduction 1 in conflict between bike and pedestrian and we’ve got a very large pedestrian passive zone with 2 seat walls and benches and we have additional bike racks and other elements that, that keep bike 3 use here and we’ve done a, we’ve got a green screen/edge here k-rail to block views of the train 4 so that when you’re in the plaza you basically get a green edge. 5 6 I think the next images are really just kinda gonna give you a bit of the character. We did a 7 visual preference survey with the community and zoned in on elements they thought were more 8 appropriate for that particular piece of the community and this gives you a sense of those. This 9 is, by interactive we mean that the sculptural fountain water element you can sit on it, you can 10 touch it, you can move in and around it, we think it’s still gonna be pretty bulletproof 11 maintenance wise. And these are some of the further images that will be on the Ave. itself. 12 Places to sit, tree rack, tree grates, tree guards, so that it’s usable. You can walk across them try 13 to create a visual continuity that, that works, especially off of El Camino. The seat walls and 14 raised elements which create a separation between the pedestrian zones and the car movement 15 would be something like this with pots, the benches, and try to build on the newspaper racks and 16 of course a lot of bike storage and plenty of colorful and large shade tree plantings when 17 possible. 18 19 Mr. Rodriguez: Thank you David. So where are we now as far as next steps? Again we do want 20 to solicit your input tonight on kind of that alignment of the street the locations of those 21 widening opportunities, make sure we’re kinda heading in the way you believe might be the 22 right, the right direction for this particular project. we do plan on going to the City Council at 23 the end of the month so there are specific design enhancements that you feel would be 24 appropriate there is still time for us to kind of add those types of elements in so we’d encourage 25 you to have a discussion on that and really, we need to actually kind of get our City Council’s 26 consensus on the preferred alignments so we can actually complete the design. Kandee who’s 27 here from RBF, her piece starts when we know what the street alignments gonna be. She can 28 actually finish those design elements so that work hasn’t started. And it is, the simple part of the 29 project I actually look at it the civil side, you know the hard part is kind of getting us to the 30 vision and it has been a long journey to this date. 31 32 Funding wise it is very worth having a quick discussion where we are. We did do grant funding 33 that we received in 2010 from the Santa Clara Valley Transportation Authority (VTA) 34 Community Design Transportation Program. We are scheduled to receive that money back this 35 fall. That should occur sometime before September, the September/October time frame, and we 36 have identified a fund source to cover the additional cost that these street alignment 37 improvements for the widening and additional green space will cost. Again that’s about 38 $700,000. That by chance just happens to be the equivalent of our two years’ worth of financing 39 that we’re receiving through a brand new vehicle registration fee program that was approved by 40 voters in Santa Clara County in 2010. And the 2011 disbursement came to us this year, we 41 banked that fund, we’re banking our 2012 disbursement and are recommending to take that full 42 $700,000 to apply it to cover the overall cost of the project. 43 44 Once we begin the final design process there’s still a lot of work to be done with community 45 input. We need to make sure that we can continue those discussions with the merchants, 46 9 merchants along the area, with residents along California Avenue or near California Avenue. 1 Talk about construction staging; try to get a sense of how fast the community wants us to build 2 this project or to minimize impacts. Talk about ways to minimize staging though say the use of a 3 shuttle kind of during peak hours of the day such as the lunch period. Talk a little bit about 4 getting the placement of some of those features David highlighted, opportunities possible but 5 that’s not set in stone. We want to hear from the community where they think those elements 6 might need to be. And then talk a little bit about an implementation schedule which earlier on 7 we were showing a potentially start an advertising of construction and over the summer for 8 construction to start first thing next year in the fall. So basically one year from now. And with 9 that we’d be happy to answer any specific questions you might have and thank you for listening. 10 11 Acting Chair Fineberg: Thank you. Also the City Attorney representative Melissa Tronquet, I 12 believe you were going to be giving us a brief on issues that relate to this project? 13 14 Melissa Tronquet, Sr. Deputy City Attorney: Yes, I did just want to update the Commission, you 15 may be aware that there was some litigation on this project. The City prepared a negative 16 declaration, a mitigated negative declaration for this project. Two lawsuits were filed; the 17 second has been dismissed in its entirety. For the first the Superior Court found that the City is 18 in compliance with California Environmental Quality Act (CEQA). That case is currently on 19 appeal; however there is nothing that currently prohibits the City from moving forward with this 20 project while that case is on appeal. So. 21 22 Acting Chair Fineberg: Thank you. Commissioners are there any questions? We can start on my 23 left and head to the right. Commissioner Tanaka. 24 25 Commissioner Tanaka: just a quick question. It sounds like a lot of work went into this so thank 26 you to Staff and thank you to the community for all the input. Can you talk about all the 27 different community outreach meetings that you guys have had and maybe the number and 28 quantity and breath of them? 29 30 Mr. Rodriguez: Yes, thank you. We have had several meetings we had just since the time that 31 we, actually I’ll show you that slide really quick if I can, since the, I always give you too much 32 animation in a presentation by the way. There we go. So just, just since the initial request by the 33 City Council to try and add in that extra sidewalk widening space we’ve had four specific 34 meetings focused around sidewalk widening options, again plaza design. We have outreached 35 separately twice to merchants and had kind of different focus meetings with them as well. Prior 36 to this during the initial development of the project we had probably another four to five 37 additional meetings and again, by no means is that community outreach process complete. We 38 have a lot more work to do finalizing the plan just make sure that we have an alignment 39 containing treatments that really matter a lot that we want to hear from the community on. 40 41 Commissioner Tanaka: Thank you. 42 43 Commissioner Michael: So, prior to being on the Planning Commission I served on the 44 Infrastructure Commission along with Commissioner Tanaka and new Commissioner Panelli, 45 and this appears to be a significant improvement to our surface infrastructure so that is very 46 10 promising. I also see we have a very large number of speaker cards from the people in 1 attendance and I’m looking forward to hearing the comments and concerns of everybody who is 2 here tonight. And without stealing anybody’s thunder, we’re anticipating what you might be 3 commenting. I note that we’ve had a lot of comments have been submitted in writing of people 4 who are quite favorable on the project but some who are not and at the same time the Council 5 Direction appears to be not if this project would happen, but simply comment on the specifics of 6 the details. 7 8 So, one question I had was to the extent that they proposed improvements contemplate lane 9 reduction and part of the opposition to the project is a concern that the lane reduction would be 10 adverse to the interests of the, the merchants and the safety of the cyclists and whatnot. Could 11 you comment on the traffic flow, are we still gonna have stop signs where you move to more 12 sophisticated control of traffic flow with stop lights and timing of the movement of cars and 13 whatnot. Could you help me understand that? 14 15 Mr. Rodriguez: Sure, no problem. The proposed street alignment which I am slowly trying to 16 get to here, does preserve all of the existing all way stops that exist on the corridor, specifically 17 on California and Ash, California and Birch, as well as California and Park. So none of those 18 existing controls are proposed to be removed. When we were developing the traffic study for the 19 project which was part of the negative declaration that was approved by Council, we did look at 20 you know as many opportunities as we could to figure out would there be any impact with the 21 specific project. And we looked at both an intersection level of service to figure out at an 22 intersection with an all way stop if we took away a lane, what does that do to the capacity and we 23 measured capacity based off a measurement that’s called level of service where we assign a letter 24 grade between A, B, C, D, E, and F. A being extremely favorable, F being representing 25 congestion. And we never had any, any type of anticipated level of service impact at all along 26 the corridor. But intersection level of service was just one issue. 27 28 One of the major concerns we heard from the community was, you know, if you take a lane away 29 and people use that one lane to kinda to double park, if they’re doing something within a 30 business and dropping people off allowing to drive around them. And so we also looked at the 31 option of studying the corridor mid-block and look at level of service for street operation 32 ignoring the controls and found that there was no significant impact on level of service from that 33 standpoint either. The traffic study though did have some recommended mitigations as Melissa 34 mentioned, specifically at the intersection of El Camino Real because we go from two lanes to 35 one lane as you approach the intersection that we needed to extend the stacking capacity for the 36 right turn to get onto northbound El Camino as well as make sure we don’t block the access to 37 the left turn lane so you can get on to southbound El Camino. And that was one of the 38 recommended mitigations for the project that we preserve kind of access to those three lanes that 39 are maintained at El Camino Real and the project does that as well. 40 41 Commissioner Michael: So the analysis seems to be very complete and indeed maybe 42 impressive. The just the experience that I’ve had as a local resident and in other sort of 43 neighboring communities there are a number of other towns nearby who have a, sort of a single 44 lane, or a two lane district similar to California Avenue, you have Castro Street in Mountain 45 View, University Avenue even, maybe Laurel in San Carlos. And have you any comment of 46 11 what you’ve learned in terms of the study of those other neighborhoods and what work you did 1 in terms of best practices and how we’re adopting those? 2 3 Mr. Rodriguez: Yes, thank you and I’ll try and answer and maybe let Curtis chime in. we did 4 conduct an economic development kind of analysis of communities that had kind of gone 5 through similar kind of processes where they’ve done projects like this where they did a 6 reduction to provide a two lane corridor for business district and what we found through those 7 experiences were that those communities responded back saying that you know, their, that 8 conversion of the street use and design long term has actually been an overall benefit for those 9 communities because of the amount of pedestrian activity that it has created for the types of use 10 for bicycle access and overall people have seen an increase in their economic development as a 11 result. Curtis got any other thoughts on that? 12 13 Mr. Williams: Oh, I would just indicate that this we have not had a like an economist come in 14 and analyze that but we certainly you can that there have been a couple articles that we 15 forwarded from, one from the Valencia Street where they did narrow four lanes to two lanes San 16 Francisco and seeming success at that project and you know, you do look at most downtown 17 vibrant city streets and they tend to be the two lane with wider sidewalks and more amenities and 18 many cities have done those over the last twenty years or so and you know, been very, they seem 19 to be very successful so I think we’re comfortable. We listed some of those in previous reports. 20 21 Also from a traffic standpoint, in the traffic analysis when we presented it to the Commission 22 and then to the Council, we did indicate the traffic volumes on those streets and they are 23 generally three to four times the traffic volume that’s on California Avenue as well and 24 California Avenue clearly is a dead end street at the train station, so it was originally built as a 25 through street for many years and then with the changes to the Oregon Expressway and such it 26 closed off there at the tracks and so it doesn’t serve that through purpose anymore. But we do 27 think it’s, you know, it has well more than enough capacity to handle at two lanes handles the 28 level of traffic that it currently handles and more at four lanes. 29 30 Commissioner Michael: Ok. So just two more questions. One is I was really struck by the fact 31 that you, you kept some of the angled parking and added some parallel parking but you increased 32 the parking on the street and could you explain to me how the geometry works on that that you 33 achieved that that benefit? 34 35 Mr. Rodriguez: Sure the, the majority of the way which we gained space with this particular 36 project was really by actually adding parking in locations where it actually currently didn’t exist 37 in combination with at locations where we had more acute angled parking, something say below 38 60 degrees, again there were some locations that have 35 or 45 degree angled parking. You 39 know by making that a little bit more obtuse you actually increase the number of spaces you 40 could fit into an aisle but in locations where there is not parking today we’re actually, we are 41 introducing it is specifically over here in front of Palo Alto Central. There actually is no parking 42 currently provided for those residences that a little bit to the east of Park. We’re actually adding 43 spaces there. 44 45 12 We also convert parking that is currently parallel to angled in that same area near the park 1 because we do recommend as part of this particular project for the plaza improvement to remove 2 the angled parking that’s in the plaza and kind of shift that to the north side of the street for the 3 apartment complex on the other side and we still have an opportunity to gain even more space if 4 we can build a partnership opportunity with Caltrain to provide parking at this kind of dead end 5 area of the corridor. So again we’ve picked up a lot of parking, kind of toward that east end, 6 we’ve kind of changed the use from parking to get a more pedestrian space and outdoor seating 7 and dining areas for the locations on the west end on the south side, which was the heavy kind of 8 restaurant use area. 9 10 Commissioner Michael: Now I’m presuming for the cyclists safety issue you’re not gonna do 11 bike lanes. You’re gonna have the rumble strip and that will be the ideal solution. The other, 12 other issue that from a cyclist’s perspective I’ve recently, so we’ve had the, the topic of the 13 Pedestrian Bicycle Plan in the last couple of months. And presuming your consistent with, with 14 the recommendations there, any thought to tunnel improvements much like you did with the 15 Homer Tunnel and this tunnel under California is pretty narrow and dark and dingy and sort of 16 dangerous. Would that be breaking the budget to improve the tunnel? 17 18 Mr. Rodriguez: Well I guess this project is consistent with the recommendations for the type of 19 activity that was proposed on California Avenue itself, especially with it being kind of an 20 enhanced bike way with kind of wider streets, and get a sharrow markings for use. There is not a 21 rumble strip on the corridor. I just want to make sure that we’re clear there, that that band serves 22 two functions. The bank itself is an extension of the parking aisle, or the debt of a parking space. 23 It really provides a visual aesthetic breakup of the roadway to designate kind of the vehicle and 24 bicycle element area from the parking area itself. 25 26 We don’t have any immediate near term fund source to look at a improvements to the tunnel 27 itself underneath California Avenue kind of extending across Alma, but that is a recommendation 28 in the plan and this particular project though does not account for improvements underneath 29 there. There are though lighting improvements that are being planned now to add more LED 30 lighting through the corridor to have it be a little more comfortable for people that are traveling 31 through there and so we are doing other projects at this time. 32 33 Commissioner Michael: Ok, thank you. 34 35 Acting Chair Fineberg: Thank you for your questions Commissioner Michael, and Commissioner 36 Keller. 37 38 Acting Vice Chair Keller: Thank you so I just wanted to be clear, painfully clear that, that the 39 decision by the Council to reduce the number of lanes in each direction from two to one, total of 40 four lanes to two lanes, is not in scope for the Commission. That the decision has already being 41 made and that we should make our deliberations on the design assuming that decision. 42 43 Mr. Williams: That’s correct. 44 45 13 Acting Vice Chair Keller: And other street beautifications that might not involve reductions of 1 the lanes is also not in scope for us. What we’re doing in scope for us is, is the decisions, is the 2 beautifications that can come along with the reduction of lanes. 3 4 Mr. Williams: That’s right. The Council has directed that based on the options that Jaime 5 showed you that were presented to them for us to come back with a some kind of hybrid of the 6 concepts they liked from that in this design. That’s what’s before you. 7 8 Acting Vice Chair Keller: Thank you. And in response to Commissioner Michael’s questions 9 you have talked about the number of vehicles on Cal Ave. being considerably less average daily 10 traffic on it being considerably less than University Ave. which is a through street and Castro, for 11 example is a through street, but Cal Ave. is a, is a street that terminates at the Caltrain. To what 12 extent does the fact that some people have pointed out that traffic goes to, may go and come 13 around and, you know, traverse the street in both directions as opposed to going in one direction. 14 Does that affect the equation at all? Or is that already incorporated into your figures? 15 16 Mr. Rodriguez: That’s already incorporated into our figures. 17 18 Acting Chair Keller: Thank you. And one last question that I’ll have is, is the distribution of 19 parking roughly along Cal Ave. roughly the same as the distribution of parking now, or has it 20 been shifted from block to block and I notice of that, that there’s a change of four additional 21 parking spaces, but is that distribution, are the stores that have street parking near them, are they 22 have a similar amount of street parking or has it been shifted? 23 24 Mr. Rodriguez: It varies block to block Commissioner. So again, just looking at the first block 25 between El Camino and Ash, you know there is actually an increase in parking spaces along the 26 north side of the street, but there is a proposed shift of parking supply along the south side from 27 in front of the restaurant uses to provide that widened sidewalk use and kind of outdoor seating 28 opportunity and that gets shifted a little bit more to other areas of the plaza specifically toward 29 the east end. The center blocks really actually preserve their parking I would say for the most 30 part between Ash kinda and Birch and Park. But we’re shifting the parking kinda from that other 31 opportunity towards the from west to the east one of the good points that David did mention is 32 that one of the nice things about the California Avenue business district it’s really well supported 33 by parking. Today kinda behind Cambridge and down on Sherman there’s a really nice 34 walkways that are kind of help connect that parking supply to the area. We do know that there 35 are though, it’s worth noting there are concerns from merchants and other people in the area that 36 that parking spot is not enough during that peak period of the day which is really the lunchtime 37 crowd and that’s something that we’re committed to working with the businesses on as well. 38 39 Acting Vice Chair Keller: So you mentioned that the lunchtime, the peak parking demand is 40 during the lunch I guess from 12 to 2? 41 42 Mr. Rodriguez: That’s correct, about 11:30 to about 2:00. 43 44 Acting Vice Chair Keller: Ok. So that’s the peak time and that’s when parking is at a premium 45 and, but this doesn’t affect that because the number of parking spaces are roughly the same? 46 14 1 Mr. Rodriguez: At the end of the day we do add an additional four spaces that, and potentially up 2 to eight depending on if we can make the partnership work with the Caltrain. But we also 3 provide elements that don’t exist today. We do provide on street loading zones on California 4 Avenue. This plan actually highlighted a total of three areas that we kind of glossed over in the 5 presentation because we want to have more discussion with the business association that those 6 are located in the right location. So again, there is again a parking distribution there’s also kind 7 of access benefits that are being proposed with this project, the loading zone introductions. 8 9 Acting Vice Chair Keller: So the loading zones I take it will allow for trucks to park along the 10 curb and cars to go around them and not block the flow of traffic. 11 12 Mr. Rodriguez: That’s correct. 13 14 Acting Vice Chair Keller: Thank you. And just one last thing and that is I understand from, from 15 Curtis, you’d mentioned that you’re going to be working with the merchants, will you, Tommy 16 as well, Tommy Fehrenbach, in terms of, of a transition plan to try and minimize impacts on the 17 merchants. Is that the idea? 18 19 Mr. Williams: Yes, that is the idea we attempted to have some of that discussion and clearly it’s 20 too early in the process to do that right now, but that is definitely a commitment that we’ve 21 made. 22 23 Acting Vice Chair Keller: Thank you. 24 25 Acting Chair Fineberg: Thank you Commissioners. We will now have public comment. 26 Members of the public will have three minutes each to speak. If you would like to speak, please 27 complete a speaker’s card and turn it into Staff. We have about 15 speakers and we will start 28 with Shannon McEntee and then follow with Gil McMillon. And if the second speaker could 29 come to the front area so that we minimize the time between speakers that would be helpful. 30 Shannon McEntee please. 31 32 Shannon McEntee: Thank you I’m a resident of Evergreen Park so I’m just three blocks from the 33 area we’re describing and I bicycle through there all the time. I bicycled through there on my 34 way over here tonight. I just want to share that I attended most of the early and ongoing 35 discussions regarding this project and residents and business owners were consistently against 36 reducing the lanes and thank you for pointing out that that’s supposedly a done deal, but I still 37 want to register my displeasure with that. The, I feel like we’ve all been ignored this last almost 38 two years. The two lanes on University and on Castro Street are congested, they’re dangerous, I 39 would never ride my bike on those streets. 40 41 California Avenue is really a crossroads, both north/south and east and west for pedestrians and 42 bicycles in particular. And certainly we have lots of traffic in every direction from neighbors 43 and from workers on their way to the industrial park or to Stanford and so on. I know you’re all 44 familiar with that. It has a really healthy variety of businesses and I feel like these business 45 owners have been ignored in this process. They’ve consistently been against it and now you 46 15 have something new from them where they’ve all signed on to saying, “We don’t want two 1 lanes.” 2 3 So, I just want to end by saying, you know, I’ve lived here for 40 years and I’ve never felt so 4 alienated from our government here in Palo Alto. I think at best residents and business owners 5 have been ignored, and worst I think we’ve really been betrayed in this process. We haven’t 6 wanted these changes; you know why don’t we just improve that tunnel? Why don’t we plant 7 more trees and flowers? Fix it up. Sure. But this major change everyone, almost everyone has 8 been against from the very beginning. So I just feel really disturbed about it and I wanted to 9 have that be part of the public record. Thank you. 10 11 Acting Chair Fineberg: Thank you. Gil McMillon to be followed by Michael Ekwall, Ekwall. 12 13 Gil McMillon: I’ve heard the original plan with its various variations and I’m still left with some 14 questions. Why is this project necessary? Must all streets and designs conform to the gated 15 (interrupted) 16 17 Acting Chair Fineberg: Excuse me, could you speak into the mike please? 18 19 Mr. McMillon: Ok. I’ve heard the original plan along with its various variations and I’m still left 20 with questions. Why is this project necessary? Must all streets conform to the gated community 21 aesthetic, or that of megamalls? Would the Council fund this project if all the money had to 22 come from Palo Alto’s pockets? Where is the hub in the hub transit? Where is the transportation 23 in the transit grant? It seems to me that applying for that grant and applying it to this process is 24 near fraud. I’m from Jersey and if I were still in Jersey I’d be wondering whose getting paid. 25 Because this project just has no raison d'etre. There are vacancies on University Avenue. There 26 are vacancies on Castro Street in Mountain View. There are vacancies on Santa Cruz in Menlo 27 Park, but there are none on California Avenue and the parking lots on Cal are always full, not 28 just at lunch time. Try to park at dinner time, it ain’t fun then either. 29 30 What does the plan have to revitalize as someone was quoted in the paper. It’s a vibrant, 31 functioning economic place. As currently written the plan does not deal with how it will 32 increase economic activity on the Avenue or address the primary limit to growth there, which is 33 inadequate parking. There’s no plan to convert Cambridge and Sheridan to one way and have 34 angled parking to almost double the capacity of parking for almost no money. I’m not sure when 35 or why the planning community decided the automobile was their sworn enemy and I ask what is 36 wrong with more cars? Bicycles are great but the population is aging, and as the younger folk 37 create new families they will need personal forms of mini mass transit i.e. SUV’s and vans. 38 What is it that the planners have against cars? They pollute a lot less than they did and will 39 produce even less pollution in the future. Why not find some tech angels and sponsor 40 development of non-polluting, a non-polluting urban vehicle that might fold up when not in use. 41 These vehicles would clean the air, quiet the city and increase access to centers of activity for all. 42 43 If safety is the issue the most direct route to calm traffic on Cal Avenue is a pattern of 44 strategically placed speed bumps. A bike lane would help both those types of wheeled vehicles 45 as well as the pedestrians who are currently as much at risk from sidewalk cyclists as they are 46 16 from automobiles on the road. Moving the second lane will help neither, but when all is said and 1 done, we’re all just guessing. The prior traffic surveys did not include the newly occupied AOL 2 building, the existing law offices on the corner, the recently approved development on Park 3 Boulevard or Association of Bay Area Governments (ABAG)’s plan to increase housing in the 4 City by 30%. To really know how this project will change the Avenue we need a live test of the 5 plan. It would take a month or so to plan and install and cost little to do. Other less expensive 6 and complicated projects have been tested. Why not this one? 7 8 Acting Chair Fineberg: Thank you. Excuse me. Michael Ekwall to be followed by Jessica Roth. 9 Thank you. 10 11 Michael Ekwall: Thank you, so I’m Michael Ekwall from La Bodeguita, we’re at 463, I’m not 12 sure if it’s South or California Avenue, but we’ve been located there for 15 years and I think the 13 difficulty we have with this project is that we support so much of it, but obviously we are 14 opposed and concerned with the lane reduction. It seems as though from our perspective that the 15 Planning and Transportation Department has never correctly or accurately conveyed the concern 16 of the merchants. So about four or five months ago we had 55 merchants sign on to opposition 17 for the lane change. So I don’t think that 55 out of probably whoever knows how many 18 merchants are there is a few merchants. That’s the majority I would say of people on the street. 19 20 I’ll only speak on behalf of myself and not speak for anyone else, but that’s our major concern. 21 We support a lot of the safety issues, the beautification issues with this project. We appreciate 22 the fact that the City has gone to the effort of finally doing something on California Avenue. We 23 think they’re going a little too far with the lane reduction, but I feel as though our voice hasn’t 24 been heard. I think Ms. McEntee was saying earlier is that it’s been glossed over and I just 25 would really like to focus on the point that in March there was a meeting with the merchants and 26 the Planning Department which they canceled because there was so much opposition. And again 27 it wasn’t a few people, it was 40 or 50 or 60 people there, everyone to a person against this 28 project, or at least against the lane reduction portion of it. 29 30 And following up with what Gil was saying, some of our concerns are the fact that you’re 31 actually trying to intensify use of that area while reducing access. That doesn’t seem to make a 32 lot of sense to us because realistically people that move into the area are going to have cars in 33 one form or another. So, we are asking for dialogue with the City. We’ve constantly asked that. 34 We’ve constantly asked for it with the Planning and Transportation Committee. I think that the 35 information that you’re receiving from them is not accurate in terms of the real opposition to the 36 lane reduction. 37 38 Quickly, dealing with parking and deliveries on this current plan, we don’t even see the areas for 39 delivery vehicles being acknowledged here and those will actually take up parking spaces that 40 this plan is supposed to be adding. Again, I would like to issue that in the back of our building at 41 least, between Sherman and California the parking spaces aren’t even to a legitimate parking 42 stall size. I think they’re six and a half or seven feet, so when people come and park there they 43 usually take up one and a half or two spaces, you know, probably reducing the capacity of that 44 lot by you know, 20 or 30%. 45 46 17 So, just in summary I would say that we really like to be collaborative and work with this City 1 but we feel as though no one is really listening to our side of the plea, and that we would like to 2 revisit the lane reduction. Thank you for your time. 3 4 Acting Chair Fineberg: Thank you. Jessica Roth to be followed by Jack Morton. 5 6 Jessica Roth: Hi there, I’m Jessica Roth. I am fourth generation business owner on California 7 Avenue. I also live in College Terrace. I spend 95% of my time in a one mile radius. I have 8 been to over 13 meetings over the last three years. I’ve tried to go to every single one of them 9 and I want to tell you how hard it is on this side to just be ignored and to kind of feel deceived. 10 There’s certain things that just, I had something prepared to, to say tonight but I just scrapped it 11 because I wanted to just reiterate two things. 12 13 Mr. Tanaka asked about how those meetings went. A direct question earlier and I don’t think he 14 got a very accurate answer to that. Those meetings there was a very large opposition at almost 15 all of them starting at the very first meeting in the Palo Alto Weekly offices almost three years 16 ago now. Then Mr. Michael asked about the City Council their decision on making it the two to 17 four lanes. Well, the City Council was never given a four lane option. They have always 18 consistently been given the two lane option. So that’s a little just, you know, we’re coming from 19 here and we appreciate your time and I know that this is pretty much a done deal. 20 21 Two more things I’m really concerned about, parallel parking coming directly off of El Camino 22 on California Avenue. Bad idea. People lunchtime hour, mom coming with groceries from 23 Country Sun, a baby and a two year old, someone’s gonna sit there and wait for her parking spot 24 for, you know, how long? And how long does it take to get in and out of parallel parking? A lot 25 longer than diagonal parking. Thank you. 26 27 Acting Chair Fineberg: Thank you. Jack Morton to be followed by William Ross. 28 29 Jack Morton: Chair Fineberg, before you start my time could I ask that Jaime put up the first 30 slide, first of the PowerPoint slides, the what do you call it, the project/site slide? Thank you. 31 So if you want… 32 33 Good evening, Chair Fineberg and Commissioners. I need to disclose to you that I’ve been on 34 the other side as a former Vice Mayor and an eight year Council Member. I also need to disclose 35 that I’m a member of Business Association of California Avenue (BACA), but I’m here to speak 36 as a member of the business community. 37 38 It’s hard to oppose something where the language seems so positive, so I want to give you a 39 dictionary of terms because in some ways there, there’s a kind of double speak that goes on here. 40 Staff uses “green” and talks about “green.” There’s nothing green about more cement and for us 41 the color should have been red because we think the risk is reduced sales tax. That’s the primary 42 source of revenue of what makes California work, certainly Palo Alto work. 43 44 Staff talks about traffic calming. In our view, what we think is potential is congestion producing. 45 Staff uses terms like there’s been “some opposition,” and “some concern” about language 46 18 reduction. I don’t have to tell you that 55 and more merchants published their point of view 1 because we just do not get through to Staff. Staff will say they met with us and it’s as if we 2 never, nobody talked when everybody opposed that. Staff talks about higher residential density 3 being, you know, this area and that strip of land up there that’s called Cal Avenue is now the 4 potentially the access for what will be the most dense part of Palo Alto if plans for Fry’s 5 development go through. 6 7 Even though Staff has not allowed, or Staff expressed that the Council has not given you the 8 option of talking about a four lane reduction, your responsibility is to think about this project 9 within the larger development and to express your concerns. While you may not be able to say 10 that you think that another version is better as Planning Commission advisers to the City Council 11 and were I still on the City Council I would want to hear about your concerns. And I would want 12 you to express the fact that we don’t want PR from this City during a construction period. What 13 we want clearly and we’ve asked for from the beginning is a trial of the lane reduction. Because 14 for us the, what they call Complete Streets, and they say efficiency for all modes of 15 transportation, we have delivery vehicles going down there, we have multiple shuttles, shuttles to 16 Stanford, shuttles to the, to the business park, and we have school kids going to school in the 17 morning through that area. Narrowing those streets will produce increased hazards for 18 everybody that uses that area. So let me, let me express my final concern that you express any 19 concern that you have about the limitation and about how this fits in with the overall planning of 20 that area because you may be the decision that the Council relies on and you will effect a 21 significant amount of future residents in our community. Thank you. 22 23 Acting Chair Fineberg: Thank you. And I’d like to ask future speakers when the bell indicates 24 your time is up to please wrap up your sentence quickly so that I don’t have to ask you to stop. 25 Next speaker will be William Ross to be followed by Will Robinson. 26 27 William Ross: Good afternoon, good evening. My name’s William Ross, I’m a resident of 28 College Terrace. I utilize some of the businesses on California Avenue. I’m also an attorney; I 29 represent owners, businesses, and taxpayers on the project area. It’s almost two years since the 30 Transportation Officer indicated that when questioned about where the loading zones would be 31 that they delineated. I take issue with the statement tonight. Look at everything that’s before 32 you. Text and diagrams, there still isn’t any loading zone designation. The practicality of that is 33 emphasized in two ways. Suppose that a CF-40 or a CF-60 truck, which are the kind of trucks 34 that deliver to the businesses on California Avenue occupies one of the lanes that results from the 35 sidewalk widening and it happens all times a day, something else not brought to your attention 36 by Staff. Where do the emergency vehicles go? 37 38 Sometimes alleyways are referenced where deliveries would take place. You have an action 39 item before the ARB of not even a month ago where this came up. A very prominent and 40 respected developer came forward with a project at 260 South California for 27,000 square feet 41 of office. Now I don’t know what Staff told him, but he can’t take access from the front. Instead 42 he would take it from something called New Mayfield Alley, a one way, 22 foot, public way that 43 dead ends. It doesn’t go through the post office, that’s not a public right away. How do you get 44 access to this increased density that you’re authorizing? There’s a very pragmatic example of 45 where that’s not dealt with in the Staff Report, it’s certainly not in the negative declaration. 46 19 1 Additionally, the notice issue continues to be a problem. Neither of the, neither of the owners 2 were notified for that project. I take issue with what was represented by the City Attorney. You 3 are technically at risk if you proceed. The negative declaration does not mention priority 4 development area, neither does the Staff. The primary issue I’d say is where is the analysis here? 5 For the increased density that’s gonna be authorized here for access if it’s not gonna come off 6 California? 7 8 Finally your Assistant City Manager almost two and a half years ago said any configuration that 9 widens the sidewalk has to deal with a severe grade issue with respect to drainage. That’s not 10 dealt with anywhere. I think you should have a more thorough analysis. It appears from the 11 Staff Reports you have prejudged the project. 12 13 Acting Chair Fineberg: Thank you. Will Robinson to be followed by Robert Moss. 14 15 Will Robinson: Hi. Tough crowd tonight. I’m a bicyclist. I know many of you merchants, I buy 16 stuff from you. I miss the yogurt shop. I wish there was a hardware store; I’d be down there 17 more often. But I serve on the PABAC and I’ve spent five wonderful four hour periods counting 18 bicycles down at the Mollie Stone corner where in the morning I see 600 students coming and 19 going through the tunnel and businesspeople going north and south. So it’s a pleasure to use 20 California Avenue with a car or a bicycle. 21 22 I do want to clarify one question that was addressed to me from a neighbor in the audience here. 23 Anything that interferes with the tire of a bicycle is dangerous, so the rumble strips is the wrong 24 word I believe for those D marking things, assuming the design goes from four lanes to two lanes 25 that one remaining lane will be 40% wider than the 11 foot lanes that now exist so there’d be a 26 lot more room, a lot more safety for dodging a cyclist or minding somebody backing out. But 27 the surface of the colored pavement that you saw on the plan should not be interfering with 28 safety. Curbs and stones and bike lanes that confine something are inherently dangerous, so. 29 30 I want to point out that the Bicycle Plan was passed unanimously on Monday night. On Page 31 411, it’s available, downloadable, .pdf. You look at the traffic map, it’s gonna stay the same the 32 numbers will just get bigger so more bicycles will be needed. And if you look at Page 3.3, to 33 me, if you want to get a quick idea, visualize where the growth is gonna be, it’s certainly gonna 34 be left of the train tracks in the area. And California Avenue is right in the heart of it, so let’s 35 make it real and good. It’s a good place so really just want to make it better. 36 37 Acting Chair Fineberg: Thank you. Robert Moss to be followed by, I’m sorry, hard to read the 38 name. Brad Ehikian, Ehikian? My apologies. 39 40 Robert Moss: Thank you. As you may have noticed there’s a fundamental disagreement 41 between the Staff and the City Council’s vote and almost all the merchants on California 42 Avenue. And the best way to determine who’s right about the negative impacts of narrowing the 43 street would be to have a trial. Now, Staff keeps saying, “We can’t do that!” Bull. We did it on 44 Charleston, we're doing it on Arastradero, and let me remind you that those trials uncovered 45 serious defects which had to be fixed. So there is no physical reason why you can’t do a trial on 46 20 California Avenue. And let me point out California Avenue is not like University, it’s not like 1 Castro. We know it dead ends, but also there are no stoplights on California and there are mid-2 block crosswalks. The other streets don’t have it. So it’s not the same system. 3 4 Now, one of the things that hasn’t been mentioned is when the Housing Element, I’ve been very 5 much involved with over the last year and a half, two years, was adopted this week, it named 6 California Avenue as the City’s only preferred development area, which means according to 7 ABAG the number of housing units is going to more than double over 800 housing units added. 8 The number of jobs is gonna increase by about two thirds, over 3,000 jobs. And in fact, if you 9 look at the projects which have already been approved, or which are in the pipeline, I think 10 people may not realize it, but almost all the offices and retail from California Avenue toward 11 Mayfield site and even going up California along El Camino, are planned to be demolished and 12 replaced by over 300 homes in the next three or four years. And it’s another 89 homes have been 13 approved two developments south of California Avenue. That’s about half of the 800 that are 14 already, that are assumed to happen. So we are not going to have in three or four years the same 15 kind of traffic, the same kind of intensity of use, and the same kind of needs on California 16 Avenue that we have today. There’s a new office building going in right next to Keeble & 17 Schucket which isn’t even included in all of this. 18 19 So we don’t have the same system, the same environment going forward as we had previously. 20 Therefore it is perfectly reasonable for the Planning Commission to tell the City Council, well 21 wait a minute; we have much more information than you had when you reviewed this. We have 22 more options presented than you had presented. We think, based on our experience and our 23 knowledge, that you should hold off, study it further, and not approve it until after we’ve had a 24 successful test. 25 26 Acting Chair Fineberg: Thank you. Brad Ehikian to be followed by Todd Burke. 27 28 Brad Ehikian: Thank you. Good evening, my name is Brad Ehikian and I’m speaking out on 29 behalf of Premiere Properties. I would just like the Commission to know that we have been 30 properly notified and we have been consulted on numerous occasions. We welcome the project 31 and we think these improvements are going to be a great benefit to the Cal Ave. business district. 32 Premiere Properties, I don’t know if many of you know, have been actively involved with the 33 ownership, management, and development of over 15 properties in the downtown California 34 Avenue area. 35 36 Personally, I like to see investment to our community which can hopefully lead to economic 37 prosperity as we’ve seen in other cities such as San Carlos’ Laurel Street, Mountain View’s 38 Castro Street, San Francisco’s Valencia Street. All these case studies which I might add, most of 39 which, I’d read on, and there’s numerous case studies that are out there, all across the country, 40 only have two lanes. All these case studies have focused on how civic investment into physical 41 streetscape design can revitalize a downtown and dramatically improve the economic vitality of 42 the area. I mean, I really do, I love everyone to invest the time into reviewing those case studies 43 cause it is really important and I just want to thank Jaime Rodriguez and Curtis Williams as well 44 as Staff to working hard on this project to bring forth the positive change to our community. 45 Thank you. 46 21 1 Acting Chair Fineberg: Thank you, Todd Burke to be followed by Lynnie Melena. 2 3 Todd Burke: Thank you, my name’s Todd Burke. I live on California Avenue. I actually 4 overlook the plaza at the end of the street. I’m also the President of the Homeowners 5 Association at Palo Alto Central. I’m actually speaking on behalf of myself and many of my 6 neighbors who are in full support of the project. We’re in support of the streetscape renovation 7 as well as the lane reduction. We’re looking forward to the safety improvements that are gonna 8 come as a result of better pedestrian access in crossing the street, better bicycle access, a number 9 of the people who live in Palo Alto Central, most if not all of them to some extent use the 10 neighborhood by foot or by bike more so than they do by car. In fact most of us don’t even drive 11 down California Avenue and I would question concerns about future development because a lot 12 of people who live in the neighborhood don’t drive down the street. 13 14 I have some notes planned and I wasn’t, you know, like a couple of the other speakers I’m gonna 15 change my direction a little bit but one comment I want to make is I’ve been actively involved in 16 and sought input from the Staffers, Council Members, more Staffers regarding the project. I felt 17 like I’ve had a chance to speak my voice. I’ve been in these meetings with many of the business 18 owners who’ve recently, previously stated opposition to the project. I’ve felt like, and many of 19 my neighbors have felt like we’ve had the opportunity to have constructive input into the project 20 so I would counter that particular point. 21 22 There are a number of other additional points that were mentioned here by folks who are clearly 23 in opposition to the project. I respectfully disagree. I’m a patron of many of their businesses; I 24 often tell my friends that La Bodeguita is the best place to get a mojito in the Bay Area. I happen 25 to love that restaurant. However, I respectfully disagree with their position. I think this project 26 will actually dramatically improve their business, but we’ll ultimately see. 27 28 There’s a suggestion about a trial. I think a trail would probably not be a good idea because it’s 29 pretty obvious the neighborhood needs renovation. The opponents pretty much strictly talk 30 about a lane reduction, but if you’ve been on California Avenue where I happen to live and 31 overlook it needs a dramatic renovation on all aspects. Not just lane reduction but bike racks, 32 crosswalks, various forms of beautification. 33 34 Regarding the traffic it’s really hard for me to follow and understand the opposition to the traffic 35 numbers. I could go out there in the middle of the day and cook a pork chop on a hibachi and 36 probably not get hit by a car. So, I’m having a hard time understanding the opposition to the 37 traffic numbers. Not that I would do that since this is an official meeting. So I encourage you to 38 put into context a lot of the opposition because there’s a fair amount of hyperbole and a little bit 39 of melodrama in some of those statements. I think this is going to be great for all the businesses 40 involved and certainly for the residents and my neighbors, those of us who live on California 41 Avenue. Looking forward to the project and the lane reduction. Thanks. 42 43 Acting Chair Fineberg: Thank you. Lynnie Melena to be followed by Irvin Dawid and if anyone 44 else would like to speak please turn in your cards. 45 46 22 Lynnie Melena: Chairperson Fineberg and Members of the Commission. I’m here tonight to 1 encourage you to move forward with the California Avenue Streetscape Improvement Project 2 including the reduction to two lanes and the various design elements including sidewalk 3 widening. For 16 years I worked on Castro Street with a ground floor window looking out at the 4 Castro/Mercy intersection and observed how successfully that street served its users. The one 5 thing that Castro did not do well is provide for bicyclists and that has been a problem. The 6 proposed California Avenue design will do a much better job of that. 7 8 While working for the City of Mountain View I was a member of the Technical Advisory 9 Committee that advised the VTA on its Community Design and Transportation Manual and Best 10 Practices. This is a program that is the major funding source for this project and it is very 11 exciting to me to see the guidelines in this manual be implemented in such an ideal location in 12 Palo Alto. As a resident of Barron Park I’ve been shopping on California Avenue for 40 years 13 and I’m looking forward to this major facelift. And I just want to correct one statement. Castro 14 Street does have about three mid-block crosswalks. Thank you. 15 16 Acting Chair Fineberg: Thank you. Irvin Dawid to be followed by Terry Shuchat. 17 18 Irvin Dawid: Thank you Vice Chair Fineberg and Planning and Transportation Commissioners. I 19 just want to start by saying I actually biked, I just came from Burlingame and I had to bike down 20 California Drive from Broadway to Burlingame Avenue where I catch the train. That’s a four 21 lane street and it’s, even though they have sharrows on the street it’s not a particularly safe street 22 to bike on. With those two lanes you always end up being, end up biking a little too close to the 23 parked cars on the right. I actually did bike down University to get here and University is a lot 24 safer. It’s congested which is good as a bicyclist; you can take the entire lane. So I just needed 25 to get that out of the way. 26 27 A 15 foot lane, one lane in each direction on Cal Ave. is going to be wonderful for pedestrians, 28 bicyclists, even motorists, believe it or not. Let me start to actually address the issue because I 29 do appreciate Commissioner Keller what you said. I believe the orders are in; the lane 30 reductions are going in. The question then becomes the design issues. And my notes had to deal 31 foremost with parking. 32 33 I did just want to get one note out of the way. San Mateo, downtown San Mateo is about the 34 only downtown I’ve seen this where they had signage in the middle of the block saying against 35 the California Municipal Code to essentially if you’re driving down in one direction that you 36 can’t just cross the yellow line if you see a vacant spot and then park. That’s against the law, it’s 37 signed and I’ve actually seen the San Mateo PD ticket motorists. It’s the only place I’ve seen it. 38 I would urge something like that type of signage to happen because something like that presents 39 a danger that that motorists, to everybody on the street. 40 41 My main issue has to do with diagonal versus parallel parking. And as a previous speaker said, 42 the, the population is aging and I’ve got to tell you that when I see diagonal parking I tend to get 43 worried. There have been so many examples where it’s generally older motorists but sometimes 44 they can be younger, inexperienced motorists. They get in the car and they’re exiting or entering 45 a diagonal parking spot and they get the accelerator and the brake mixed up. I can point to you 46 23 right here Palo Alto Toy Shop, Performance Bike on El Camino in Mountain View, and there 1 was actually one, The Jewelry Store when I first moved to Palo Alto on Cal Ave. Once one of 2 those cars flies in the store can be shut down for a long time so please consider that parking 3 issue. Thank you. 4 5 Acting Chair Fineberg: Thank you. Terry Shuchat to be followed by Gordon Cruikshant. 6 7 Terry Shuchat: Hi there, I’m Terry Shuchat, I’m a property owner and business owner on 8 California Avenue and Jaime and David are probably not gonna believe this but I think this is a 9 great looking plan. I think it’s phenomenal on paper. I don’t think it’s real practical to put into 10 use. There’s been a large contingent of us who have been working with Curtis and encouraging 11 him to have a trial restriping of the street. What we’ve heard is, “Well, it really wouldn’t be 12 practical. It really wouldn’t work.” And our question has always been, “Well if it worked on 13 other streets why would it not work on California Avenue?” 14 15 What we’re being told tonight is that this plan would go into effect fall of 2013. That gives 16 plenty of time to restripe California Avenue. The City of Palo Alto knows how to restripe 17 streets, in fact a few months ago they tried restriping Middlefield by Mitchell Park Library. And 18 due to this big uproar of people within a matter of days it was restriped back to the way it was. 19 That’s a wonderful example of how striping can be change very rapidly. California Avenue the 20 lanes on California Avenue right now are very hard to see at times because the street is definitely 21 in dire need of redoing so we would just really like to say have the city prove to us, I would love 22 to see what they want work, but as a merchant and property owner I have a lot of doubt knowing 23 the number of delivery trucks. I agree, I don’t know where these loading zones are that are 24 supposed to be shown on this map. They may be there and if they’re not there now that’s gonna 25 result in reduced parking spaces. So what a bunch of us have been saying is Curtis please give 26 us a trial period. Let us, let us see it. Prove to us that this will work. 27 28 Acting Chair Fineberg: Thank you. Gordon Cruikshant to be followed by Ronna DeVincenzi. 29 30 Gordon Cruikshant: Good evening, Hans Gordon Cruikshant, my wife and I have been in, have 31 Leaf & Petal on California Avenue for more than 30 years. There seems to be, one thing is 32 regardless of the number of stripings, let’s get the speed of the automobiles down, make it a 33 speed limit of 15 miles an hour. That balances out with a bicycle. I lazy cyclist can do 12, so 34 it’s very close to that same speed. 35 36 Secondly, when this thing gets built, if it gets built, we’re very concerned about the impact it’s 37 going to have on our business. We have vendors, we have staff, we have ourselves, we have 38 landlords. I don’t think any of those people are going to give us discounts because of the effect 39 that this construction may have on our business. I suggest and really push for this that all the 40 work be done at night and let, let, let the people be during the day. We’re not open at night but 41 we’re open during the day and we’d really love to have that. 42 43 A couple other observations I mean the trial striping sounds like a great idea. The second or 44 third, I mean I don’t know about all this development and all these other housing things but 45 there’s such a, parking is such a mess a lunchtime. If you guys are in the planning business you 46 24 should be building four and five level parking structures. University Avenue has a couple of 1 them, I don’t know why California Avenue can’t have them. Thank you. 2 3 Acting Chair Fineberg: Thank you. Ronna DeVincenzi to be followed by Michael Eager. 4 5 Ronna DeVincenzi: Thank you. I have a disclosure too. I volunteered for California Avenue 6 Area Development Association (CAADA) as President and went to every single meeting for the 7 last 20 years up until January 2010. And the point was made that the City Council was not given 8 a four lane option and only a two lane option and I’ll tell you why. That was because it was in 9 the CAADA concept plan that the Streetscape Committee had worked on with Public Works in 10 collaboration brought it to CAADA and it was a unanimous decision by the CAADA board to go 11 to two lanes. And so that was the reason that four lanes was never an option. The reason for that 12 is it meets the goals which I’m looking at here where you have the vision for the street. Promote 13 pedestrian and bicycle safety. That was key. So it’s kind of like we’re talking about way back in 14 2005 and all of the meetings for CAADA were open and I actually even groveled to get people to 15 come but there was just no interest then. It’s unfortunate that now in 2012 there is and as of 16 2009 there has been, but that’s the reason for the two lane option. And the point is it met the 17 goals of the Streetscape Committee and we were an elected body that met for 20 years. 18 19 Everything that I’ve seen is excellent. It was done in collaboration with the City and since 2009 20 everybody has been made aware. I’ve talked to people on the street, customers, and there’s 21 nobody that says they have not been able to be heard. This is exiting because it’s like the Rolls 22 Royce version of the streetscape that we always, it always seemed out of reach. This design just 23 oozes City excitement. I applaud everyone for the time they spent on putting this together. I 24 urge the Commission to pass it as it is, recommend it to City Council and it be done ASAP 25 because that street needs attention. Thank you so much. 26 27 Acting Chair Fineberg: Thank you. Michael Eager to be followed by Joy Ogawa. I don’t see 28 Michael Eager. Joy Ogawa please to be followed by Lara Ekwall. 29 30 Joy Ogawa: Hi, good evening. I wasn’t planning on speaking but a couple of the earlier speakers 31 I think got me to stand up here tonight. 32 33 Acting Chair Fineberg: Excuse me, could you speak into the mike please? Thank you. 34 35 Ms. Ogawa: Ok. I guess I’m gonna have to back up a little bit. I wasn’t planning on speaking 36 but I think when Brad Ehikian said Premiere Properties has always been notified, I have to point 37 out Staff does this all the time. If you’re on Staff’s side, they make sure you get notified and 38 show up in support. And if you’re not on Staff’s side, you, you, maybe you’re not gonna get 39 notified. 40 41 And I was at the March 22nd merchants meeting and where the Staff had a meeting with the 42 merchants on California Avenue and, which I don’t think they really said, but as other speakers 43 have pointed out, every person who spoke at that meeting spoke against the lane reduction. I 44 remember also at that meeting Curtis promised that, you know, because Staff was saying you 45 can’t talk about this lane reduction at this meeting, we’re here to talk about, you know, how 46 25 we’re gonna plan for construction and, and but Curtis promised there was going to be a meeting 1 moving forward with the merchants to discuss this issue because there were a lot of very angry 2 merchants there and property owners. And there were several people, more than two people, 3 who said we specifically, it was mostly property owners, we specifically have not received 4 notice. And, so I mean I’m glad that Jim Baer gets his notice regularly, but there are people who 5 don’t receive notice. And just because Jim Baer gets his notices doesn’t mean Staff has been 6 good about giving everybody notice. 7 8 The other point was that Todd Burke spoke and said that, you know, he felt he had a chance to 9 get his, to be heard at these meetings and therefore, you know, it’s like everybody had a chance 10 to be heard and I think my point that I want to make here is, again, if you don’t agree with what 11 Staff and what the consultant has in mind about what they want to do you don’t get listened to. 12 And you know, you get listened to, but they don’t really react to you, it doesn’t really have any 13 effect on the plan. They’re going to go ahead with the plan that they want and they’re going to 14 pick and choose the people’s comments that they support their plan. And, you know, I just, it 15 just, I see this over and over again at so many meetings with so many issues, I just, you know, 16 when I, when these people spoke I just felt I had to say something about it because it never gets, 17 there’s never any rebuttal, you know? I, so, thank you. 18 19 Acting Chair Fineberg: Thank you. Lara Ekwall to be followed by Bob Davidson. 20 21 Lara Ekwall: Test, test? Ok. First of all my name’s Lara, I have a restaurant on California 22 Avenue. My husband spoke earlier so I apologize for being greedy with the, with the 23 microphone I’m going to hit bullet points in the form of a PS. I’m heavy, I’m assuming you’ve 24 all please seen this ad that we had to publish because we were having a hard time being heard. 25 And so Mark we submitted that with all the papers today so when you’re saying that there are 26 only a few people in opposition, I would ask you to reread this. There are 55 merchants, there 27 are several more who are afraid to go on the record or I didn’t have the time to reach out to 28 because I’m operating a business, but you have 55 businesses on the street that submitted today 29 in addition to our ad that we are against the lane reduction but for the beautification, so I would 30 like to correct your statement from earlier. 31 32 Next, regarding the history of CAADA and BACA, which is supposedly the new evolution of the 33 merchant’s association. For a long time CAADA did wonderful things so no disrespect to Ronna 34 or the people that dedicated their time, but I’ve been a business owner for 15 years and only once 35 did I feel like I was actually being helped by CAADA. When I walked the street to generate a 36 master e-mail list so you guys had an easier time contacting everyone to minimize frustration I 37 don’t know if those people had actually been contacted. E-mails went out I believe to Curtis and 38 Tommy. I walked the street hour and hour and hour along with many other people creating an 39 outreach list to minimize the tension. 40 41 Back to the BACA issue. CAADA does not speak for the neighborhood. It hasn’t in years. So 42 don’t be under some sort of like misunderstanding that there’s a merchant’s association speaking 43 for us. If you want to look to a group that actually willing to go on the record and says that they 44 are anti-lane reduction and pro, look at this because we’re very frustrated and no disrespect to the 45 plan because it’s beautiful, but no one is recognizing and you’re only going to get more and more 46 26 angry so I appreciate, poor Curtis at the meeting I feel like there should be a City Council person 1 or one of you attending the meetings because what we’re seeing and being present to is clearly 2 not being represented. So we would like to see a City Council Member or one of you at future 3 and please take into mind that there is not a BACA association that speaks for our businesses and 4 CAADA has not spoken for the neighborhood in years. 5 6 One more tease? If you could consider maybe putting a bike lane on one of the side streets 7 instead of the major. That’s it. 8 9 Acting Chair Fineberg: Thank you. Bob Davidson to be followed by Cedric de La Beaujardiere. 10 11 Bob Davidson: Ok, I’m Bob Davidson, property owner and business owner on California 12 Avenue since 1962. Probably for the last 10 years we’ve talked about, you know, fixing the side, 13 new sidewalks, vegetation, bike racks. We had bike racks until about 15 years ago and the City 14 of Palo Alto took them all out and never replaced them with anything. We’ve talked about trash 15 recycle bins. All of those things looked really good. I think the lane reduction here going from 16 four lanes down to two lanes I feel is driven by VTA’s $1.2 million. It’s kind of like a train to 17 nowhere out in the middle of Bakersfield. You know it seems like that wouldn’t get that free 18 money which never is free and the only way you can get that money is to have a lane reduction. 19 20 The community has been to the meetings. There has been a lot of oppositions to the lane 21 reductions but I feel that most of the meetings that I attended it was more like this is what we’re 22 gonna do and not asking anybody what they wanted to do. I can’t believe that we want to reduce 23 two lanes, which I think is 22 or 23 feet wide down to one lane that is 14 feet wide and put the 24 trucks, the cars, and the buses, and the bicycles all into 14 feet. In the morning I’m not sure if 25 that many people come and see it but our business opens at 7:00 in the mornings, from 7:00 until 26 9:30 in the morning except summertime there is a large number of small buses and vans coming 27 down from Stanford University, from Tesla Motors, from Hewlett Packard picking up passengers 28 from the train. I think it’s great, but that’s a lot of traffic. AT about the same time you have a 29 large number of young students who are going to school riding their bicycles down to go through 30 the tunnel. I think that’s too much traffic. 31 32 One thing about parklets. I was in San Francisco a month ago. They had a street full of parklets, 33 it took me three laps around the block to find a parking place so that I could check into a hotel. 34 Parklets are, that’s just taking away parking and much needed parking for any business 35 anywhere. Thank you. 36 37 Acting Chair Fineberg: Thank you. Cedric de La Beaujardiere to be followed by Philippe 38 LeHot. 39 40 Cedric de La Beaujardiere: Hi, thank you. My name’s Cedric de La Beaujardiere. I’m a, I 41 support the plan. I think it’s a very affordable plan. I was unfortunately wasn’t seeing the slides 42 on my way over here but listening on the webcast and I was quite impressed it was like $700K, a 43 to a million that you invest in a lot of good improvements. I’m a regular shopper on Cal Ave. I 44 go every week, almost every day. About a year ago I surveyed businesses personally because I 45 was hearing a lot of businesses say, “We don’t support this plan.” So I was like, is that true, you 46 27 know, so I went door to door to the businesses. You know I’m not, you know, beau trust or 1 whatever but, of the people I spoke with about a third of the business owners weren’t there or the 2 manager or whatever, I left literature. The remaining two thirds, just over half were in support 3 and just under half were in opposition. So it would be nice to maybe do an official survey of 4 businesses, you know, maybe anonymous, but it would be nice to get kind of real numbers 5 behind all these claims. 6 7 And, in terms of specifics I think we should widen the sidewalk in front of Joanie’s Café. Maybe 8 it’s been updated but the last iteration has the loading zone in front of Joanie’s but they get a lot 9 of business it would be great to get some seats out there and maybe do, in a survey you can ask 10 them, hey where would you like it to be widened, you know? I think the businesses could tell 11 you best where really the widening is most beneficial. 12 13 You can’t get more parking without the lane reduction and the lane reduction enables widening 14 of sidewalks. And then for the California Avenue exit from the tunnel for the bikes specifically 15 it would be nice to soften the angles when you’re coming out of that tunnel into the contraflow 16 bike lane. And it might be nice also to have maybe less or no diagonal parking along the edge of 17 that contraflow bike lane so that there’s less potential conflicts of cars swerving into the lane to 18 avoid people parking. So I think that’s it. I hope you will support this plan. Thank you very 19 much. 20 21 Acting Chair Fineberg: Philippe LeHot to be followed by Robert Neff, and if there’s anyone else 22 that would like to speak please turn in your card to Staff at the desk. 23 24 Philippe LeHot: Hello, my name is Philippe LeHot and I’ve owned and managed four, well since 25 1979, roughly the corner of California Avenue and Ash Street. And recently last year I moved 26 Joanie’s Café into the corner, that’s the building and I have about, well I have exactly four retail 27 stores there. Joanie’s Café, the other one is Zen Garden, and then you have a bookstore named 28 Know Knew Books and then you have the restaurant Spalti, and they’re all my tenants and I can 29 tell you and I’ve probably already told you because this is not the first time I speak to you that 30 just about nobody’s in favor of a lane reduction. We’re all in favor of putting trees, to reestablish 31 the trees which were stolen by the City what, two, three years ago without knew, without us 32 knowing. And I still sorry about the 35 foot Holly Oak which used to be right in front of the 33 property there. 34 35 But to make a long story short, we haven’t had any good communication with Curtis Williams 36 and I’m totally in agreement with the people who spoke before me. Last time we had a meeting 37 there with Curtis Williams I asked him point blank would you tell me how many businesses on 38 California Avenue have no access in the back in the service alleys and therefore require to have 39 those huge trucks which come and take one lane for deliveries. And he told me well, City Staff 40 has those details so I, there were some City Staff at the meeting nobody knew. So I know of one 41 for sure, which is not far away from my place. I know also about you could argue though that 42 Starbucks, Starbucks you know. 43 44 And, you know, the study for the traffic isn’t being done correctly and I’m not impressed by 45 what I’ve just seen and I would strongly urge the City Council to send back the City Staff to 46 28 make a correct study of traffic. I handled traffic studies when I was young, did traffic at the 1 airport and all that. I guarantee you this traffic is, traffic study which was made by whoever is a 2 fake, ok? Thanks for your time. 3 4 Acting Chair Fineberg: Thank you. Robert Neff will be our final speaker. 5 6 Robert Neff: Hi I’m Robert Neff. If you could bring up slide number 21 which shows the plan 7 for the park at the end of, where are we? There it is. So I’m a bicyclist I serve on PABAC but 8 mostly my input is about access to the California Avenue tunnel from California Avenue and 9 from Park coming from Stanford. And this contraflow bike lane I’m really concerned about for 10 two reasons. One is that the diagonal parking is, I can imagine someone backing out of that, the 11 diagonal parking you can see at the bottom right, left there, a car swerving around the car, the 12 automobile that’s backing out and straight into the counter flow bike lane in the evening when 13 it’s dark and maybe some bicyclist doesn’t have a front light on their bike. 14 15 And then as well the connection from the counter flow bike lane into the intersection looks really 16 terribly under designed. If you’re a bicyclist then you’re traffic if you’re in that lane and yet you 17 don’t have good visibility on a lot of the intersection it looks like, it looks like a poor way to 18 enter that intersection. And a lot of, a significant amount of traffic coming out of the tunnel is 19 heading up on toward Park Avenue going up north on this drawing and so they would be going 20 right across the traffic coming out from around the train station which might not be able to see 21 them very well. 22 23 We, the PABAC is on record as preferring a direct access out of the tunnel going, going up 24 across the park directly to the driveway on the I guess the north side of that park and that way the 25 bicyclists would be able to enter traffic in a, along the driveway that goes around the park and 26 enter the intersection at a place where people would expect bicyclists, would expect traffic to 27 enter the intersection. But you know, bicyclists don’t follow rules as well as automobile drivers 28 do and so I don’t doubt that many bicyclists would find an alternative that would seem less 29 dangerous to them then the counter flow bike lane as well. So if we provide a good sound 30 alternative then I’m sure bicyclists will take it, but if it’s not a good alternative then they’ll find 31 another route. Thank you. 32 33 Acting Chair Fineberg: Thank you. Appreciate all the feedback from members of the public. 34 What I’d like to do now is ask Staff to address some very specific questions that members of the 35 public have raised. I’m seeing also that Staff would like a moment and then after that we’ll take 36 a five minute break. Mr. Williams. 37 38 Mr. Williams: Yes, thank you. There are some overarching issues I’d like to address first and 39 then, then maybe that’ll answer some of your questions and then you can ask more specific ones. 40 So first, I think I have about four items. So first, maybe semantics here but there was a statement 41 made that our March meeting with the merchants was canceled due to the level of opposition 42 there. I would characterize that meeting as not being canceled. It was there, I certainly felt like I 43 was in a meeting for at least an hour or so and there was, and I would certainly agree that there is 44 substantial opposition that was at that meeting and that has shown up in one way or another 45 generally the group of merchants that you heard from tonight. So I would not minimize at all the 46 29 amount of opposition that is there and certainly apologize if we anyway characterized this as 1 minimal or just a few people or something like there. There is a substantial group of merchants 2 in opposition to this. We don’t, we don’t, sorry concur obviously with the opinions but, you 3 know they, they are in opposition and I would recognize that. 4 5 Secondly, or actually that was second. And then third the trial issue. So we have discussed that 6 an I do expect that we will be when we talk to the Council in a week and a half we will have 7 some discussion about the concept of doing a trial. These are the concerns that we have about 8 doing a trial and why it’s, and I’m sure Jaime has some other perspectives on it as well, but why 9 it’s not impossible to do one but it is problematic to do a trial. It doesn’t mean that we can’t do 10 something, but first of all to do a trial we need to pave, repave the roadway which is going to 11 cost some dollars and if the intent is to come back in a year and do these improvements we’re 12 going to have done that and have to redo that all again and whether that’s an efficient use of 13 funds. 14 15 Secondly it is difficult to replicate the environment that we’re trying to create out there. We can 16 restripe it, but how do we effectively replicate the sidewalk widening part of it, the aesthetic 17 enhancements and that, that are sort of the positive component of that, that, that, you know, it’s, 18 so it’s sort of like put up the, you know, repave, if you don’t get sort of the flip side of what’s 19 happening out there. 20 21 Thirdly I think the time, my one big concern I would have is the time that we would have a trial 22 there because we have essentially temporary improvements it’s hard to imagine that that is going 23 to be aesthetically pleasing on the street and my guess is that the merchants would complain 24 about the looks and it would detract from their business to have something that is not a high 25 quality type of environment in the area. 26 27 And fourthly I think that there would need to be some kind of agreement on sort of what, not 28 necessarily what success means with the trial, but what we’re measuring. Because what we hear 29 a lot of times in terms of traffic impacts in particular are sort of antidotal incidents and I, we 30 would have some concern about we can show that the congestion level is minimal or negligible 31 change from currently through engineering even getting a third party engineer or something like 32 that involved, but there are a lot of comments we hear about oh, well, you know at this point 33 there were three cars stacked at that intersection waiting to turn. Well is that a significant impact 34 in the light of all of this, and you know so trying to get a better handle on some commonalities of 35 what, what we would consider to be, you know, problems with the trial or successes with the trial 36 I think we could work towards that but I think that’s an obstacle out there to try to overcome. So 37 there’s a lot to think about in trying to do that. It’s certainly would be nice to do it but again I 38 think the, there’s a big difference between Charleston/Arastradero where it’s purely repaving, 39 restriping, that kind of thing and it’s not the aesthetic enhancements that go along with that, that 40 is such a major component of this and are so difficult to replicate. So, I don’t know if Jaime, if 41 Jaime wants to add to that or not. 42 43 And then the last comment I would make is I would take wholehearted exception with Ms. 44 Ogawa’s comments about the Staff notifying people who were in support of the project and 45 people who were not. we have tried very, very hard on this as well as all other projects we have 46 30 to, I mean we’re required by law to notify certain people, we have a system that notifies them, 1 it’s not who comes to knocks on our door or calls us or whatever it’s, it’s based on property 2 records that are that we have and people who have come to meetings and signed in, as Ms. 3 Ekwall mentioned and we really appreciate the list that she put together that was very helpful and 4 we do e-mail out to everyone on that list when we have a meeting coming up. There’ll be one 5 going out I think tomorrow about the Council meeting on Monday the 23rd, so I think that, you 6 know, if somebody feels that they don’t, didn’t get a notice we’d certainly be interested in 7 looking back and trying to find out if there’s some reason that they’re not showing up on the 8 property records, but it certainly has nothing to do with their position on the project. Thank you. 9 10 Acting Chair Fineberg: Thank you Mr. Williams. Mr. Rodriguez, did you want to add to that? 11 12 Mr. Rodriguez: I have nothing else to add. 13 14 Acting Chair Fineberg: Ok, thank you. I captured a few other items if Staff could also address 15 some of the issues raised by the community. There were numerous questions about the locations 16 of the loading zones and then the possibility of widening the sidewalk in front of Joanie’s, and 17 then the possibility of conducting the work at night, and lastly, the inadvisability of parallel 18 parking at the south side of El Camino right where Cal Ave. comes off El Camino due to the 19 nature of cars waiting for spaces to open. 20 21 Mr. Rodriguez: Sure, I’ll try and address both of those concerns for you. Specifically the issue 22 of the loading zones I’m gonna kind of walk you down the corridor where those loading zones 23 are shown. Their actually we’re showing them on the diagram we can definitely point them out. 24 So in front of Joanie’s that was a correct statement by the audience there’s a proposed loading 25 zone right at the corner of Ash and California Avenue. That is a proposal it was our attempt to 26 try to respond to some of the initial community concerns regarding a need for loading zones on 27 California Avenue. There is an opportunity to look at an additional loading zone kinda across 28 the street somewhere near Country Sun. We’ve highlighted it as an opportunity for a potential 29 bicycle corral, it was also something that we’d look at as an opportunity to relocate one of the 30 Stanford Marguerite Shuttle stop locations at so there’s a lot of opportunities. I think that’s one 31 of those things that we need to further refine during the design process and that’s, that’s the 32 process we’re trying to continue on after we get a conceptual approval of the concept alignment 33 of the street by the Council. 34 35 Kind of moving on down the corridor, there’s an opportunity for a loading zone near Birch 36 Street, kind of in front of the bus stop. We’ve identified that also as an opportunity for a bicycle 37 corrals or some other type of facility in front of Printer’s Cafe, we’d be open to having those 38 discussions with the businesses as part of the design improvement process for the meeting. We 39 do also show a loading zone in the area of Park Boulevard and California Avenue in this area as 40 well. 41 42 As to the question of can we do more of a sidewalk widening type of a treatment in front of 43 Joanie’s Café, I believe we’re definitely open to that type of an interest. Again if there’s a 44 community consensus for doing that, that’s something that we can continue to explore. There is 45 a bus stop in that area for the Marguerite system and we want to make sure that we’re trying to 46 31 minimize those impacts because it is such a heavily used line and that line does bring customers 1 to the area so we want to be sensitive and not to disrupt that interruption of that service as much 2 as possible, but again, that’s a detail we can definitely work out as part of the design process. So 3 ongoing. 4 5 The other question that you had, I’m sorry, was in relation to the angled parking on El Camino 6 Real. That to me is just a really good example how I really feel as Staff that we’ve really tried to 7 listen to the community from the very get go of this project and when we started this project 8 there was so many concerns from the community specifically regarding the angle parking on that 9 side of the street and how having angle parking there in a 60-degree configuration was not gonna 10 be beneficial to helping bicycles travel down that corridor as cars were coming off of El Camino 11 Real because they felt that cars in that area traveled a little faster so this was again an attempt for 12 a large part to try and respond to those community concerns and felt well that was probably then 13 a really good location for a conversion from angled to parallel to address that concern. And then 14 now we’re hearing the concern come back for the exact same reason, and so it’s, it’s a project 15 that’s really gone through a lot of iteration. 16 17 I do think that the recommendation for the parallel parking one in response to the initial concern 18 from the community and specifically the businesses about angle parking in that area and speed of 19 vehicles coming up El Camino Real and then also in response to the community concerns and 20 Council concerns regarding you know where it is, do we maximize the benefit of sidewalk 21 widening for merchants that really is the prime area of the whole corridor where we provide the 22 most benefit. 23 24 Acting Chair Fineberg: Thank you, and kindly the feasibility of work at night please? 25 26 Mr. Rodriguez: As far as constructability? You mean only build at nighttime? That is 27 something that is definitely doable. Again we haven’t had that discussion, we did try to have 28 that discussion, that was the focus initially of the meeting that we tried to have with the 29 merchants in March. We just haven’t been able to have had a discussion in that regard because 30 of the issue and concerns of the four to two lanes. And again we do want to make sure that we 31 try to provide a construction staging and building plan for the merchants that minimizes concerns 32 of only building this project but provides something that the community wants. 33 34 We really would prefer to do that and kind of put that into the design because when we bid the 35 project out if it’s bid knowing that it’s nighttime work we as a community get a better price 36 versus not stating that as a requirement up front during the bid documents and then trying to 37 come back to the contractor that we’ve awarded a project to and say, hey you know we really 38 want you to build it at nighttime, you know can you do it for the same cost they’re gonna say no. 39 And so it’s gonna cost a lot more money if we decide something like that later, so that’s a very 40 critical element of the ongoing design process that has to be have a discussion with the 41 businesses. 42 43 Acting Chair Fineberg: Thank you. With that I will close the Public Hearing. We will take a 44 five minute break, resume with the Commission discussions and entertainment of Motions or 45 recommendations. 46 32 1 Commission took a break. 2 3 Acting Chair Fineberg: Thank you, I’d like to call the meeting to order once again. We will 4 bring it back to the Commission for discussion, Motions, and recommendations by the 5 Commission. We’ll have five minutes each. I’d like to have a first round of discussion and 6 comments and questions and then we can go a second round and possibly entertain Motions and 7 recommendations. We’ll start with Commissioner Tanaka please. 8 9 Commissioner Tanaka: So I have a couple questions. The first question is how many businesses 10 are there on Cal Ave. 11 12 Mr. Rodriguez: You know I don’t have that information with me Commissioner. I don’t have 13 that. 14 15 Acting Chair Fineberg: Hold on, hold on please. The Chair recognizes a member of the public 16 Lara Ekwall, and I have to ask you to come speak in the mike and I will reopen the Public 17 Hearing. 18 19 Ms. Ekwall: Thank you. What was I speaking about? So anyway, several of us actually were 20 starting the process of trying to form a merchant’s association so that it was, we did have a 21 cohesive voice to interact with you guys and in the process we generated a master list and when 22 we actually wanted to create a tally count of the businesses it became an issue of do you have 23 retail, do you have professional offices, like do you have restaurants? So I actually have a 24 master list of all that information, so the numbers depend on whether you’re counting people 25 who have an individual massage therapy unit, or they have like massage, Heshmat has like a 26 large unit that employs many. So that number is gray, so I understand that they wouldn’t have 27 that, but at the same time they do have our master list of merchants that we’ve made a great 28 effort to update over the last year with current contact information phone numbers and e-mails. 29 30 Acting Chair Fineberg: Excuse me, could you come back to the mike just as a follow up? So can 31 you give us orders of magnitude for if you include everybody on the list how many, and if you 32 have just maybe the things that look like retail stores that customers walk into that sell 33 something? 34 35 Ms. Ekwall: I’m not comfortable giving you that. I’m happy to give you all of my data though 36 and the reason is I’m not sure if you’re looking at the people who are generating the largest sales 37 tax dollars, but if you look at the larger merchants on the street as well as the small merchants, I 38 was able in our short time to gather 55 merchants, businesses that were anti, and I found two that 39 were for. And so my effort in what we were doing was trying to create a clear percentage of 40 those people who were for and against because I don’t think it’s fair to our neighborhood to bully 41 the answer. And so I’m happy to forward that to you tomorrow when I get to my desk. 42 43 But I think, I’m sure you guys know already you’ve seen the letters that I was one of the people 44 that went to the Metropolitan Transportation Commission (MTC) Board and spoke, and so 45 earlier when the gentlemen rightfully so, Todd was talking about all the case studies, the MTC 46 33 that day had over $500 million dollars they were looking at, the only thing that they put on hold 1 was that one ticket. And unfortunately I don’t recall the woman’s name, but she made a valid 2 point in front of everyone on the record that all of those case studies were not relevant to our 3 case because we were a dead end street. She was familiar with California Avenue and that’s 4 what led to the funding being put on hold. I’m also disappointed and sad (interrupted) 5 6 Acting Chair Fineberg: Thank you, excuse me, we need to ask you to stop you’ve answered the 7 question, thank you. 8 9 Commissioner Tanaka: Ok, the other question I had was I thought that there was talk about 10 having a VTA Rapid Transit Stop there. Can you talk about how that might change the 11 pedestrian traffic in that area? 12 13 Mr. Rodriguez: The VTA has a Bus Rapid Transit (BRT) project along El Camino Real to 14 connect, or provide enhanced bus service between downtown San Jose and the University Transit 15 Mall, California, the Caltrain Station. That project currently is on hold by the VTA but the 16 original concept was that there would be an enhanced BRT or Bus Rapid Transit station at the El 17 Camino Real and California Avenue intersection with enhanced stations in front of the Radio 18 Shack building on the northeast corner as well as in front of the Wells Fargo Bank on the 19 southwest corner. And so obviously with ridership projections from the VTA there would be an 20 increased capacity of pedestrians and bicycle traffic that would be using that stop to make a 21 connection to a facility like Caltrain near the Park Boulevard Plaza so we’d see an increase I 22 don’t have the numbers though of the ridership. 23 24 Commissioner Tanaka: Ok, I was just wondering if you had a gut feel whether this would change 25 the ratio of pedestrians versus cars on the Cal Ave. area. 26 27 Mr. Rodriguez: As far as a ratio I would imagine the bicycles actually would increase. As far as 28 the vehicular traffic, you know if you’re really going there you’re going there for a destination 29 for a purpose and so there isn’t anything that with the BRT route that would probably increase or 30 reduce the number of vehicle travelers on California Avenue or the project area itself. 31 32 Commissioner Tanaka: Ok. And then can you bring to the park, the, I forgot what you guys call 33 it, the end of where Park is the, plaza. Sorry. What wasn’t really clear to me is, can you explain 34 and maybe show with your pointer how the bike flows. 35 36 Mr. Rodriguez: So this particular concept, what we’re showing here is the actual road itself with 37 vehicles traveling counter clockwise around the park this direction. So, for bicycle access we 38 show two options, one is that there’s the share of the road and the second there is a contraflow 39 bike path for bicyclist existing the tunnel to get towards the California/Park intersection. 40 41 Oh, thank you, and I’m sorry we’re not sure where it was left off, but just to note again this is a 42 one way loop, counterclockwise of a roadway and for bicyclists they could follow that same 43 route around but the main concern that we’re hearing from the members of the audience is that, 44 that is just a heavy access point for the tunnel. And so for bicyclists coming down California or 45 from Park they could just stay on that same road, it’s gonna be about 12 feet wide which is really 46 34 comfortable and then be able to just turn, make a left into the plaza and make the right into the 1 actual tunnel. 2 3 Exiting the tunnel there’s really two options, a bicyclist can one, if they’re trying to get towards 4 El Camino or just down California Avenue what we had shown originally as a recommendation 5 from PABAC was a contraflow bike lane and a contraflow bike line by definition is a striped or 6 marked facility that allows a bicyclist to move in the opposite direction of the vehicles that 7 would normally be next to them. Remember when you have bicycle lanes that are in the same 8 kind of direction of vehicles adjacent to them in this case contraflow would be opposite. 9 10 We are hearing a concerns that are, that isn’t something that would be of preference to PABAC 11 anymore. We’re happy to remove that. That is actually ok with us. But if you’re exiting the 12 tunnel again there is an opportunity for people just to continue straight kind of ride though the 13 center of the plaza and move through. Some of the initial concerns from the community from the 14 non-bicyclists was that they didn’t want that interaction and that mix. It is, it is a public plaza 15 space where they’ll be a lot of uses. There are benefits to discourage bicyclists from traveling 16 through that path and the contraflow concept was an option or opportunity to do that. 17 18 Other opportunities can be for bicycles to kind of ride through kinda and around on the other side 19 of the bicyclists, of the plaza. You know, people want to follow the shortest distance right, that’s 20 usually what happens. And so you’re likely to see people kind of come in through this area and 21 continue to ride through. Another option can be and this was talking to some gentleman in the 22 audience was that you know these existing Birch trees we don’t want to touch them. But there 23 can be an opportunity to maybe look at in between the Birch trees providing a paved path so that 24 bicyclists could then ride straight kinda get onto the roadway as well. So that, that’s a detail that 25 I think we’ll still work out during the design process. 26 27 Commissioner Tanaka: Ok great thank you. But on the contraflow lane right now so you have 28 bikes coming into the tunnel and bikes coming out and they’re gonna be there’s like two separate 29 lanes then, one lane for going one direction, the other lane going… 30 31 Mr. Rodriguez: With the contraflow operation not so much a lane but an area for people to kind 32 of like, we would encourage a dismounting on the, on the actual tunnel, we wouldn’t encourage 33 for people to be riding their bicycle and that is something that we would identify during the final 34 design process is sign and mark that area as a dismount because it is shared by both bicyclists 35 and pedestrians and there are kind of barriers kind of down into the tunnel that would require you 36 to dismount anyway. And so how that interaction works would be like two separate wraps that 37 can be painted, kind of like the Hallberg Tunnel is today for those of you that are familiar with 38 that area, there’s kind of ways to kind of guide you with markings to which side of the tunnel to 39 be on if you’re riding. 40 41 Commissioner Tanaka: Ok, and in terms of, I’ll take the rest of my questions later then. 42 43 Acting Chair Fineberg: Thank you. Commissioner Michael. 44 45 35 Commissioner Michael: So this was an impressive outpouring of public comment this evening 1 and I want to thank everybody who participated and then I would certainly urge the Council 2 Members prior to their meeting on the 23rd to, to take the chance to read the verbatim minutes of 3 the public comment that we’ve heard tonight because it will be instructive for them and would 4 imagine that many, if not most of the people who participated at our session would have the 5 energy to participate at the Council Meeting as well. 6 7 You know just as a comment as the role of the PTC with design review. I have some humility or 8 even reluctance after just a brief public hearing on my part to propose major changes in you 9 know serious professional effort to come up with a design for the, the California Avenue street 10 so, but at the same time I do have questions and I think just, just to pick on one that we were 11 talking about with the plaza. So I’m a pretty avid cyclist and you know I’ve since my childhood 12 I’m familiar with the neighborhood. This is a 50 year period and I’m not on the street every day 13 like many of the people who spoke this evening, but I think if you, if you construct the plaza 14 improvements as proposed you’re gonna be stuck with the tunnel. And I don’t think you’re 15 gonna be happy with that. So I think that the, sort of the modifications to the tunnel should be 16 undertaken if ever, now. Because they should be integrated with whatever you do with the plaza. 17 18 And the, you know, the idea that people dismount, you know I hesitate to admit that when I go 19 through the tunnel I don’t dismount and I watch people on their cycles and they don’t dismount. 20 And so the assumption that that’s gonna be the way people behave is, is, it’s idealistic but the if 21 you do have a means of getting people to dismount then you probably don’t need the contraflow 22 bike lane. You can have, they’ve dismounted they’re walking, you can have them walk right 23 across the plaza and if you provide that means for that to get into the right direction then this 24 design is probably not optimal. 25 26 So, the other thing that I’m very eager to participate in hearing information about the California 27 Avenue Concept Plan so I think that the, the information about what you do with California 28 Avenue sidewalks and street and plaza looks actually pretty interesting. It’s obviously gonna be 29 traumatic in a lot of respects and has to be managed very carefully if it proceeds as planned, but 30 to me it’s incomplete. It’s incomplete because you don’t have an understanding of what’s gonna 31 happen with the parking off the street, which I think is very, very important. When I go to 32 California Avenue at peak times I never park on the street because it’s, the parking is kind of, I 33 always park in the surface lots behind. And I think the idea of increasing parking capacity with 34 parking structures maybe a significant cost, but would be, you know, wonderful investment for 35 the infrastructure of the City as part of the overall Concept Plan, particularly as it integrates with 36 the Housing Plan and the possibility of increased density overall. 37 38 So, the, the idea that the Council is gonna vote on the street in isolation to me seems a little bit 39 narrowly focused. Or incomplete without the benefit of integrating it with a discussion more 40 broadly of some specific details of the concept Plan and if the Council were so inclined, 41 particularly given the, the energy that we heard from the, the merchants in particular this might 42 be something if the Concept Plan is on their agenda in just a few months’ time to have some 43 study session or other agenda that would enable all of these things to be taken as a, as a holistic 44 project. And those are my main concerns. 45 46 36 Mr. Williams: Can I just briefly respond? 1 2 Acting Chair Fineberg: Mr. Williams please. 3 4 Mr. Williams: That’s a very good point as far as the Concept Plan relationship. I, and I know 5 you were not on the Commission at the time that they did have some at least preliminary look at 6 the Concept Plans and alternatives that were [unintelligible], but I’ll tell you that as far as, you 7 know, developing parking for the whole area, in particular that issue I mean I think every 8 alternative that we had had at least one parking structure back along, you know, Sherman, along 9 the Sherman area and perhaps intensifying, you know, some of the structures elsewhere as 10 options so it’s definitely on the radar and as I mentioned I do think we will be coming to you in 11 the fall with that so we’ll create more context and it does show specifically Cal Avenue as part of 12 that so there can be some more discussion in connection with both of them at that time. 13 14 Acting Chair Fineberg: Thank you. Commissioner Keller. 15 16 Acting Vice Chair Keller: Thank you. So firstly I echo the comments of my fellow 17 Commissioners in thanking the members of the public for coming out and meeting and also 18 thanking Staff for their diligent work here and I appreciate that even those people who are 19 opposed to the transition from four lanes to two lanes, that change, find that the plan is an 20 attractive one and a beautiful one although they have, I think they have questions on whether it’s 21 a feasible, an improvement for traffic point of view. And I think that that sort of in some sense 22 may feel like a slap in the face to some of the business owners and people there after Public 23 Works overnight sort of cutting down all the trees and so, so feel like California Avenue might 24 be a stepchild in that way sort of being ignored in terms of your points of view and I can 25 certainly sympathize with that sentiment. 26 27 And certainly construction there are impacts from construction going on and also there’d be 28 simply impacts from doing all that’s necessary to repave the street, although those would be 29 somewhat less. But even repaving a street does have construction impacts that would have to be 30 considered. 31 32 One thing I would like to understand if there were to be a striping trial is what is the goal? What 33 are the metrics that one would measure to see whether the striping trial were successful? Is it 34 traffic impacts, that’s a question that one could determine, whether that’s the goal. Is it impact 35 on businesses? Well, if its impact on businesses the problem is, is that you can’t measure that 36 without the beautification. But is it impact on car, on trucks stopping and blocking traffic when 37 they’re unloading. So I think that I would encourage the Staff to talk to the neighborhood to 38 better, the community is opposed to this and is proposing a trial to better understand what a trial 39 would be and what it is to measure because in order to better understand the feasibility of a trial 40 you have to understand why you’re doing a trial and what, how you measure the outcome. 41 42 I think that’s there is the question of how to beautify California Avenue. Certainly there is a 43 desire to do that. And, you know, I think somebody might rightfully wonder did the degree to 44 which the beautification would happen, you know, without widening but that’s not really our, 45 sorry without widening the sidewalks that not’s really our purview here but, but you know 46 37 there’s considerable amount of monies being spent here by the City in addition to money being 1 spent on the grant. 2 3 I have a long term concern which has nothing to do with this project but I just want to recognize 4 it. It’s actually related to the project but not directly. It’s not a direct cause of the project but, 5 the, the improvements to the California Avenue here, have a potential to improve businesses over 6 a long run, but the real issue is what is the impact of redevelopment in terms of the kind of 7 discussions of PTOD which already is in place? In terms of the California Avenue Concept 8 Plan, the impact of that redevelopment intensification is not only in terms of people and traffic, 9 that’s not what I’m talking about, the issue is that if buildings on California Avenue are torn 10 down and replaced by taller buildings, more expensive buildings, that real estate will be more 11 expensive. And those stores that are renting that space will be replaced by, they’ll be displaced, 12 they’ll be replaced by more expensive stores. 13 14 And what we’ve seen happen on University Avenue in terms of, you know 20 years ago there 15 were shops on University Avenue that a lot of people in Palo Alto shopped at and now instead 16 we’re finding that the people in Palo Alto typically shop on Cal Ave. and on Midtown because 17 those are stores that sell things that we buy as opposed to more boutiques and things like that are 18 more geared to tourists and people like that. So I’m sort of, I’m sort of concerned with the issue 19 of not this particular plan’s impact, but sort of the overall vision’s impact on this to be able to 20 think about what the redevelopment of California Avenue will cause in terms of a mix of 21 businesses on California Avenue and the impact of that on that as a vibrant street that serves Palo 22 Alto as opposed to being a, you know, tourist trap kind of, kind of environment. So I think that 23 that’s a, I don’t know how to answer that, but it’s, it’s a concern I have of mine of the long term 24 intensification of California Avenue. 25 26 Acting Chair Fineberg: Thank you. The Public Hearing remains open and Commissioner Keller 27 asked a question of how the public might measure a success of a trial. There’s a member of the 28 public, Mr. Shuchat who seemed eager to give some input. I’m sorry. My vision to the back of 29 the room, there’s a gentleman in the back of the room who had raised his hand. My apologies 30 for the wrong name, but if you could come down and… so the, the recording secretary will 31 recognize that there’s a joke and a chuckle. Could you please state your name and then very, 32 very briefly just, … 33 34 Mr. Davidson: Yeah, my name’s Bob Davidson, I own the building at 360 California Avenue 35 and California Paint. As far as the trial period, I don’t understand why we’d have to repave the 36 street. As a non-engineer I would think that if you measured from the back of the parking, we 37 have the parking parallel, like so the sidewalk’s here, the cars come out. If you measured from 38 there to how wide the lane’s going to be whether that’s 15 feet or 16 feet and you know those 39 orange cones that they glue to ground, if you cut out the whole center section of the street with 40 those orange cones all the way down from one end to the other and that part would not be in use 41 by anybody, you know, that would be my idea. 42 43 Acting Chair Fineberg: But let me ask you, again, not how would you structure a trial, but how, 44 if there were to be a trial, how would the City measure whether it’s successful? Would there be 45 extensive traffic counts, would it be antidotal, would it be you’re happy? 46 38 1 Mr. Davidson: Traffic, I think traffic counts. Yeah, I think its traffic count. The beautification, 2 the sidewalks and those effects we’re not, you know, thinking on those effects. We want, we 3 want a traffic count and congestion to see if it’s gonna be congested on the street or not, how 4 long it takes to get from one end of the street to the other end of the street. That’s the concern. I 5 mean tonight when I’m coming down here University Avenue was a parking lot from one end to 6 the other and that’s something that the merchants don’t want. And I think that’s, I think out of 7 the reduction part of it I think that’s the biggest part is traffic flow on and off the street. If you 8 have, you know, if you have customers or we have customers that are coming to the street and it 9 now takes them 20 minutes to get to a parking space then you know they’ll think of a closer 10 place or some place that’s easier to park at and go to there. You know, that’s what I think. It’s a 11 traffic flow that the merchants are, you know, worried about. Not so much the sidewalk. All of 12 those things are great. 13 14 Can I add one more quick thing? Shortly. If we go forward with this the loading zones that they 15 pointed out there are all in front of businesses who have alley parking so I do hope that they look 16 for loading zones in front of businesses who do not have alley parking. The alleys go to about 17 70% of the businesses for loading zone, but there is 25% of the businesses that get merchandise 18 loaded off of California Avenue which blocks traffic when the trucks are there. 19 20 Acting Chair Fineberg: Thank you, I appreciate that feedback. Ok, so for my comments now. 21 This project has had many years and many meetings and many steps forward and steps 22 backwards. There’s some things about it I think are absolutely magnificent and there’s some 23 other things about it that give me great pause. So let me try and cover kind of the top ones. 24 25 In terms of what Council has asked us to do, which is look at the design, look at the areas where 26 the sidewalk is widened and give feedback to them if this was to proceed I’m gonna focus my 27 comments. I’m very pleased that this design pulls the best elements out of the multiple options. 28 There were the five options that Council said to look at in their Motions. There’s a mix of 29 parallel and diagonal parking, which yields a net gain of four spaces. That’s a good thing. It 30 maintains the central plaza option with the option of having a gathering place without the 31 negative of losing parking or ignoring the eastern end. It has sidewalk widening in some 32 locations, which is beneficial to the overall project whether those are in the correct location, if 33 Staff is gonna be examining that during the design phase I trust that we know there’s some areas 34 but we may not know exactly which ones. 35 36 The Park Boulevard Plaza it’s just absolutely lovely compared to what’s there now. Again 37 there’s some issues with I don’t know if that contraflow bike lane is right, I don’t know if the 38 mix of pedestrians and bicyclists or cars coming around, but we’re not at that level of detail in 39 the design yet and there’s gonna be lots of opportunities to either, you know, bless it or revise it. 40 And then also if I read this properly the seasonal barrier possibility allows us to have the street 41 closures without the negative impacts of some of the ways it was looked at before. So I just 42 think it’s marvelous that we’ve pulled the best things out of the multiple alternatives. 43 44 I’ve talked about a few of the things that absolutely need more review and refinement as design 45 stage if it continues. Another thing, you know members of the public have talked about it, we’ve 46 39 talked about it, we need to make sure that the locations of the loading zones is in the right place. 1 The locations of the sidewalk widening and all of the amenities, bike racks, magazine racks, 2 benches, those haven’t been dropped in and we need to make sure those are done right and at this 3 stage we don’t know that yet. 4 5 I am very, very concerned that the public feels they’ve not been heard. I’ve sat through meetings 6 where we’ve had the discussion, we looked at the environment analysis, and the Commission as 7 a body felt that the traffic on the street would not be negatively impacted by the reduction to two 8 lanes. I was part of supporting that decision, I think it might have been 2009 or 2010, and I 9 haven’t heard anything that tells me that that was a wrong decision, but yet I hear from the public 10 that there’s a strong voice that that was the wrong decision. We’re not revisiting that decision 11 tonight, but I think we’re still left with the impact of the public doesn’t believe what we’re 12 saying and that’s not a good position for the City to be in and I think we need to work to resolve 13 that however the outcome is. That needs to be fixed. 14 15 The last point is that we are looking only at streetscape improvements; we are not looking at 16 what’s happening in the greater area plan, the Concept Plan that’s going on for the wider 17 neighborhood. And I don’t know yet how I would feel about charging ahead with this versus 18 waiting if the area plan is out in two months waiting and then letting them catch up and move 19 through process together. I don’t know right now whether delaying this is good or it can and 20 should move independently so I’d be interested if my other Commissioners would share their 21 thoughts on that as we go into the next round. Ok. Commissioner Tanaka. 22 23 Commissioner Tanaka: Thank you. I also wanted to acknowledge all the members of the public 24 who took time out of their schedule to speak tonight and stay for this session. Just to address, let 25 me first say that I agree with all the points that the Chair made about putting together all the 26 great elements from the different alternatives given we’re looking at tonight. I wanted to ask, 27 and I think Curtis talked a little bit about this but maybe this could be explained a little bit better. 28 I think what I heard is that by the time this project starts we would have had actually reviewed 29 the Concept Plan, the Cal Ave. Concept Plan. Is that correct? 30 31 Mr. Williams: Yes, by the time the project starts, I think to get back to what the Chair was just 32 talking about I think we would have difficulty meeting our time schedule for funding and such if 33 we delayed this, moving ahead with this more detailed design until there was some decision on 34 the Concept Plan certainly. 35 36 Commissioner Tanaka: Ok, so it sounds like there’s two things. One is we will actually review 37 the Concept Plan before this starts, and the second is if we delay it we could lose funding for this 38 project as well. Is that correct a correct summary? 39 40 Mr. Rodriguez: On the funding side the funding path that we’re looking is work with the VTA to 41 return funding and it would actually be available to us early next year which means that we’d 42 actually have sort of two years to actually spend the money so if we delay the project beyond our 43 anticipated start date of the fall we risk not being able to meet the funding commitments of the 44 grant source that would be returned back to us. 45 46 40 Commissioner Tanaka: I see, great, thank you. One other issue that I heard earlier was drainage 1 issues and I actually heard that I think on early review. How does this, the widening of the 2 sidewalks affect the drainage issue? 3 4 Mr. Rodriguez: In this particular case that is still one element that we’re gonna finalize as part of 5 the design process but as we’ve been designing this preliminary concept we have had that 6 discussion regarding drainage and the concept today is that we actually do maintain a lot of the, 7 actually almost all of the existing drainage in that locations and slopes towards that existing flow 8 line so we don’t actually see a significant impact in the drainage areas. Now I will point out in 9 the seasonal barrier the little red dots that you kind of see just to the east of Ash Street there, that 10 is the area where the curb does begin to go away and we get away with the curb and have more 11 of a valley gutter but again drainage is maintained in the same flow that it does today. So from a 12 drainage perspective we don’t see a very significant impact because we preserve it. You have 13 impact when you have to add new storm drainage and that’s not the case here. 14 15 Commissioner Tanaka: Ok, and I assume if, you know as we, as the Concept Plan gets formed 16 then as there’s perhaps increased density on the street, is the, there would be some sort of 17 Environmental Impact Report (EIR) done to see, well now that the street is two lanes instead of 18 four whether certain projects can be approved given that kind of environmental impact. Is that 19 correct? 20 21 Mr. Rodriguez: It is and I just want to make a quick point on that note there. And again, I’m not 22 as versed in the specific plan as say Curtis is, but when we look at traffic flow around the 23 specific plan area such as this, you know, the biggest impact is where’s the traffic coming from 24 and where does it leave to at the end of the day? And the, the main arteries that feed into the 25 area of this California/Fry’s specific plan area is actually Oregon Expressway, Page Mill Road, 26 El Camino Real, and we look at the places where communiting can happen it’s actually focusing 27 a majority of that traffic on El Camino Real and Page Mill. And so again, California Avenue 28 again doesn’t have, it ends, it’s a dead end street at the Caltrain Station and it will continue to be 29 that even into the specific plan so the land use changes will occur but the main arteries that feed 30 traffic into the area are actually still all at the same levels as today and so we don’t anticipate a 31 significant change of the overall traffic volumes even with the changes in land use to the specific 32 plan. 33 34 Commissioner Tanaka: What I was just wondering is, you know, let’s say it goes from four to 35 two whether that has to be factored in as the new development happens. And so if it adversely 36 affects the traffic rate I would imagine that would have to be factored into the project’s approval. 37 38 Mr. Williams: Yeah, if this is where your question is headed, a project that’s approved the area 39 plan when it’s approved there will be traffic analysis of any individual project of the area plan. 40 41 Commissioner Tanaka: The current configuration which would then be two-lane. 42 43 Mr. Williams: That would, right. We would use the two-lane and look at that and look at the 44 impact on that. 45 46 41 Commissioner Tanaka: Ok, that makes sense. And then it’s been awhile since I wrote in the 1 numbers. Can you recall the numbers of pedestrian traffics versus vehicle traffic on Cal Ave.? 2 Do you remember what the number what the numbers are like daily traffic numbers? 3 4 Mr. Rodriguez: Yeah, what I remember we didn’t bring that slide here today was you know the 5 volume of vehicular traffic starting with vehicles first really significantly drops down as you 6 progress east around the corridor. So on average daily traffic basis we were looking at closer to 7 around 5,000 on the block between El Camino and Ash, and when you went down to Ash to 8 Birch it kinda drops down to about the 4,000 kind of, kind of average daily traffic volumes. 9 Birch to Park, you know, about a little over 3, but by the time we kinda got down towards the 10 end of the, between the Park Boulevard’s east north and south and the Plaza’s south we were 11 looking at a little over 2,000, 2,500 vehicles a day. It was not a significant amount of vehicles 12 and comparing that to say a larger arterial like University that holds closer to 25 to 30,000 13 vehicles a day so a significant difference. 14 15 Commissioner Tanaka: And how much pedestrian traffic do we have on Cal Ave? 16 17 Mr. Rodriguez: I don’t have that. I don’t remember the numbers off the top of my head. A 18 majority of the activity does happen during the day, so the peak hours in the morning there’s a 19 lot more bicycle traffic, we were counting about a hundred bicyclists kind of coming down from 20 the El Camino path all the way down to the plaza. Park Boulevard though has some much more 21 significant vehicular, bicycle volume and some of the members of the audience kind of noted 22 counting up to 600 bicyclists during peak hour times and that’s pretty consistent with 23 (interrupted) 24 25 Commissioner Tanaka: Yeah, I just seem to remember the pedestrian traffic actually being 26 higher than the car traffic and I was just wondering if I’m recalling wrong or if that’s correct. 27 The pedestrian traffic was actually higher than the vehicle traffic. 28 29 Mr. Rodriguez: During the day especially the peak hour that definitely true. 30 31 Commissioner Tanaka: Ok, so there’s actually more pedestrians using Cal Ave. than vehicle 32 traffic. 33 34 Mr. Rodriguez: That’s correct, yeah. 35 36 Commissioner Tanaka: Ok. One thing I wanted to ask is the placement of the bollard stuff for 37 the temporary closure for the central plaza. I like the barriers, the removable barrier idea, but 38 one thing is every Sunday there’s a farmer’s market there and they have kind of like the cheesy, 39 you know, plastic signs. Is there, is there thoughts about having those kind of removable 40 barriers, like kind of where the current Cal Ave., where those temporary signs are right now? 41 42 Mr. Rodriguez: We haven’t entered into any type of a discussion with any specific use as to what 43 could take advantage of a central plaza concept, but by all means though the farmer’s market is 44 definitely one option to look at that use on a regular basis. We would not want to see any type of 45 42 use in there with the barricades that you’re referring to. And so yes, definitely we’d want it to 1 see something a little more aesthetically as we’re recommending. 2 3 Commissioner Tanaka: I guess my, sorry, my question was right now the placement of the, the 4 farmer’s market signs is near the entrance of Cal Ave. near El Camino and right now you have 5 the barriers kind of at Ash Street and California Ave. and I was wondering would it not make 6 sense, because it seems like every Sunday there’s a farmer’s market just about to have removable 7 barriers kind of closer to the entrance of Cal Ave.? 8 9 Mr. Rodriguez: If I could try to answer, we wouldn’t be able to do any type of improvement at 10 that specific intersection to say add a barrier like that. 11 12 Commissioner Tanaka: A removable one. 13 14 Mr. Rodriguez: A removable one, with or without the consent of Caltrain, you know, person so 15 we try to avoid that when we’re introducing this kind of concept but focusing on the local street 16 that’s within the jurisdiction of Palo Alto. And so, but can you do it? Yes, physically it’s 17 possible but it might be a little more difficult to implement. 18 19 Commissioner Tanaka: Ok, great thank you. 20 21 Acting Chair Fineberg: Commissioner Keller has a quick follow up and then we’ll move to 22 Commissioner Michael. 23 24 Acting Vice Chair Keller: Yes, my quick follow up question is, is the intent to move the farmer’s 25 market between the removable barricades so that’s a little further away from El Camino, or does 26 it into to leave the farmer’s market where it is? 27 28 Mr. Williams: I believe that what we want to present here is something that has the flexibility to 29 do it either way. I think we still have to have those conversations with the farmer’s market and 30 merchants exactly how that all plays out but what we’re doing is creating an area that’s more 31 centralized on the street that could be used for any number of purposes and events. It may allow 32 us to, you know, extend the farmer’s market down some, or it, either away from El Camino or 33 keep it at El Camino and have, but have it nice, neat, and closed off. So I think this provides 34 flexibility for going in different directions but we haven’t had those discussions and need to as 35 part of the detailed review of you know how that would work. 36 37 Acting Vice Chair Keller: Thank you. 38 39 Acting Chair Fineberg: Commissioner Michael. 40 41 Commissioner Michael: So, harking back to a point made by Commissioner Keller earlier, the, 42 the scope of uses before the planning commission tonight are not as complete as maybe some of 43 us would like them to be or as some of the people in the community would like them to be. But I 44 think that to the extent that you’re looking at street beautification and then to help one of the 45 plaza, the plan is, and comparing this to the status quo, seems to reflect progress although there 46 43 would be inevitable disruption in implementing the plan and a lot of uncertainty as to what the 1 benefits and adverse impacts might be. 2 3 But, you know, I’m struck by the number of issues that seem to be open. And in no particular 4 order of priority I think the issue of the location of the loading zones vis-à-vis the alleys and 5 access to some businesses that may be feasible from the rear of the building doesn’t seem to be 6 of made as explicit as, as it could be or need be or should be. I think that the comment about the 7 placement of parallel parking in the first block exiting El Camino is a, a serious concern that I 8 would have relative to safety. I think the as an avid cyclist, and you know respecting the input 9 from the cycling community which I think you’ve done a good job of outreach to them. The 10 plaza tunnel contraflow lane I think is the wrong solution. It looks good on paper but I don’t 11 think it works. 12 13 And, and I really think that at the level of the Council and respecting the input from the 14 community and importance as articulated by Commissioner Keller, I think the opportunity for a 15 long term redevelopment of the California Avenue area is pretty exciting. I mean I’ve been a 16 long term, you know, patron of the area and I love it, but at certain times of day or times of night 17 it seems to be just a huge wasted opportunity. It could be so much more vitality, so many more 18 people patronizing businesses, and this may come about through more development, more 19 height, more intensification, and change which is traumatic, but progress is like that. But I think 20 to, to pass on this without putting it in that context to me is troubling. So, you know, I think if 21 the in the wisdom of the Council if they you know could exercise at least a month or two of 22 patience or maybe pull those things together, you know they might placate some of the legitimate 23 concerns of the, of the merchants and residents. 24 25 I think that they idea of reducing the lanes from four to two seems to me to be, you know, 26 obviously it’s not unanimous but it looks like it is viable. But two things can happen with the 27 lane reduction. One is some traffic’s gonna be displaced, where’s it gonna go? So this is my 28 question about adjacent parallel streets which are not before us this evening, and some people 29 will be even more frustrated than people are now by traffic in Palo Alto or part of Palo A lot and 30 they’ll go someplace else. So, again the idea of passing on this one street beautification idea or 31 concept in isolation is, seems to me problematic. 32 33 And I would imagine that, that retaining four way stops versus putting in traffic signals is less 34 expensive, but I think you could probably achieve, and I’m not an expert in this traffic flow 35 control with signals that would deal with all the magic of technology. You could actually have a, 36 that might be a worthwhile investment to make. 37 38 And then I think that the, you know, headlines every, every week are what’s happening in high 39 speed rail, we’ve got the Rail Corridor Study that we’ve recently looked at which was quite well 40 down and the Pedestrian Bicycle Plan and all these things suggest that California Avenue is like 41 right in the midst of all of these issues and we need to encourage the Council to get it right when 42 they meet on the 23rd so, assuming there are a lot of open issues on this. 43 44 Acting Chair Fineberg: Commissioner Keller. 45 46 44 Acting Vice Chair Keller: Thank you. So firstly one of the members of the public mentioned the 1 possibility of angled parking and converting the side streets to one way. I’m not sure if that’s a 2 good idea or a bad idea, but it’s something that could be explored particularly since it’s a cheap 3 way of adding additional parking. And I’m not suggesting we, you know, deal with that now, 4 but just something to put on the list. 5 6 The impact of the California, the Priority Development Area is something that actually has an 7 interesting history with respect to a submission that happened by the former City Manager that 8 was ratified by the City Council at the last minute so I don’t think that that process had a full 9 vetting, it certainly did not have a vetting before the Planning Commission prior to going to the 10 City Council. 11 12 One particular improvement that I would like to add is the mid-block crossings be slightly raised 13 as a way of improving their safety. In particular you see that in certain places on the Stanford 14 Campus and elsewhere on Campus Dive there’s certain places where the crosswalks not at stop 15 signs are raised and I think that would slow traffic appropriately as well as improve pedestrian 16 safety. If it can be done in such a way that it’s more like a speed table, not a speed bump, a 17 slight increase. 18 19 I too have concerns with the contraflow bike lane. If you go to that map I’ll get to it in a 20 moment. I agree that the idea of working with the community in terms of the location of the 21 loading zones is something that requires additional study and try to refine that with respect to 22 where they’re optimally placed. It is useful that they’re on the diagram because that shows that 23 they take up the appropriate amount of space but the relocation might make sense. 24 25 I am strongly opposed to angle parking located next to valley gutters because living where there 26 are valley gutters in my neighborhood people park on the sidewalk half the time making it hard 27 to, if I understand what valley gutters are, the rolling curb. People park on the sidewalk in my 28 neighborhood so you can’t really walk around there. You have to walk around sometimes to get 29 there and particularly when you have people who don’t know how to drive very well and use the 30 what people, what people inappropriately call the braille method of parking, they expect the curb 31 to stop them and if they don’t they wind up in the storefront that was possibly mentioned so I 32 think that’s a really bad idea fundamentally. 33 34 I don’t know if there are warrants for traffic signals or not, there probably aren’t but the issue is 35 to the extent that traffic flow is slowed down by all this it might be a potential for adding a traffic 36 signal at say Park, and, not Park I mean at Birch and California Avenue if it makes sense to 37 improve traffic flow, I don’t know if it does but it’s one thing that could be added to the mix. 38 You know, I don’t know enough the warrants for doing that. 39 40 Getting to the issue of contraflow bike lane what’s interesting to me about the contraflow bike 41 lane is good concept, bad implementation. And the concept is really how do you get bicycles 42 from the bike tunnel to the intersection of Park Boulevard and, and California Avenue in a 43 straight and efficient manner. And part of the problem is that what’s done is to create a 44 contraflow bike lane that is actually part of the through lane in the other, sort of eaten away from 45 the through lane in the other direction which I think is problematic. However, if what you do 46 45 instead is you make the contraflow bike lane actually be part of the plaza and move the trees in 1 slightly so that the contraflow bike lane is actually elevated on the raised plaza and then when 2 you get down to where the lowing of the plaza comes down to the street level, the bikes can exit 3 on there you essentially have a narrow width that is part of the plaza, you can widen the plaza if 4 you want to take, take to make that contraflow bike lane work, but by raising it up and making it 5 logically part of the plaza you have increased safety and separated those bikes from the other 6 traffic and kept the problem of the traffic going around of cars avoiding cars exiting and entering 7 a parking space from interfering with, you now, driving into the contraflow lane. An appropriate 8 lighting I think would help as well, but I think that’s a, that treatment is minimally changed but I 9 think would dramatically improve safety. 10 11 I think that, that the issue of a striping trial. Let me just if I may finish the idea of the striping 12 trial. I think that there may be opportunities to figure out a striping trial but I don’t think that 13 that should hold up the design process. I think that we should proceed along with this process 14 based on the comments and suggesting that people have made for how to improve it and continue 15 design and continue with the, with the, continue with the, the application of the grant. But I do 16 think it is possible to create a, a striping trial that may involve, I wouldn’t suggest rocking out the 17 middle of the street, that’s, I’m not sure that’s gonna work. I was suggested that maybe putting 18 temporary, moving the cars in temporarily to whey they might belong with temporary those little 19 barricade things that block the street, you know, those little curb things might be a way to 20 temporarily do that and appropriate painting and striping. 21 22 Obviously it would not involve the beautification, it was suggested to me that this might involve 23 trying to figure out how long it takes for people to find a parking space. Well, the parking’s 24 gonna be all changed so that doesn’t make sense to measure. But I think it might be possible to 25 measure the nature of the congestion with a relatively inexpensive trial that sort of mimics the 26 way that the streetscape is, the curb ends have changed and put parking spaces well marked as to 27 where they will go. 28 29 And the issue for me is not so much to change the decision. But I think that the fact that there’s 30 a significant amount of the community that is up in arms about this and feels that they have not 31 adequately been heard, I would feel that the investment of doing that would be worthwhile to 32 prove that either it was working there the impacts are minimal, or to avoid spending millions of 33 dollars on a plan that is a disaster. And so I’m hoping that there’s a way to do that in a way that 34 will either convince the community that it is doable or, or make us come back to square one and 35 revisit that, but I think it is worthwhile to, to move forward because of the time element and I 36 think we could do this in a way that doesn’t impact the schedule. 37 38 Acting Chair Fineberg: Ok, I want to quickly touch on something Commissioner Keller said and 39 also echo that almost everything my fellow Commissioners have said tonight I would agree with 40 and so there’s no need to repeat. 41 42 As far as the diagonal parking into the rolled curbs, I absolutely agree. If you utilize that you’ve 43 got to create some kind of barrier so that the front, those little cement thingies maybe, so that 44 people don’t use the valley as the place to put their front wheels which would mean the front end 45 of the car’s obstructing the sidewalk. Living in an area where we have those, everyone in the 46 46 neighborhood knows how to park properly in the rolled curbs and all of us have guests who 1 come in and put the car up on the sidewalk and obstruct pedestrians and people on the sidewalk. 2 So that will need special treatment. 3 4 I’m coming to a place where I think I’d like to see some kind of recommendation that we move 5 forward to Council that this continue on the path and receive funding. Receive the ability to be 6 funded. I don’t see that there’s anything in the surrounding concept plan that would negatively 7 impact or be negatively impacted by this work on Cal Ave. If anything the narrowing of Cal 8 Ave. will bring down intensity of the development in the Concept Area Plans when those get 9 analyzed and the environmental reports that we’ve looked at in the past were really equivocal on 10 the excess capacity of the street under existing conditions so I’d like for us to have some real 11 concrete suggestions about areas to focus, things to analyze. We’ve all talked about that so far. 12 And then move ahead with allowing this to proceed. 13 14 I think Commissioner Keller’s comment that it’s worth the investment and time and a trial is just 15 absolutely spot on. I know there are costs to that and there needs to be some tradeoffs of things 16 that we might have to remove. We might have to do a slightly less beautiful job in the plaza and 17 then find some additional funds later, but if we can get the public support that it works and then 18 proceed my concern would be and I don’t know if a trial can be engineered in a way that will 19 actually have a chance of functioning because if the trial is something that’s so doomed to fail 20 just because you, you pull up and there’s a saw horse and a two by four and a concrete wall and a 21 garbage can, and you look at it and it’s a normal driver with normal assumptions you can’t figure 22 out where’s the parking space in that mess. Or, what am I allowed to drive on and then one guy 23 decides to park parallel but it was really supposed to be diagonal. 24 25 I just, I don’t know and I heard from Staff and maybe they can speak more to it, but is there any 26 practical way to make a working trial where your average motorist, your average cyclist, would 27 have a clue of how to use the trial? Because I want a trial. I want to know that it’ll work so we 28 don’t go down a road we ought not. But, you know, can we, if Mr. Rodriguez can address this 29 maybe, can we engineer, or Mr. Williams, can we engineer a trial that, that’s even remotely 30 functional? 31 32 Mr. Rodriguez: As far as a trial, that just put in two lanes that is, like I think you’ve heard from 33 the audience not a very difficult thing to do. The difficult thing to replicate in a trial is unlike the 34 other trials we’ve done throughout the community like Charleston/Arastradero Road and other 35 areas is that, you know, the operation of two lanes is just one small piece of what you would 36 want to see implemented as part of a program and that is probably one of the most minor 37 elements that we see from the traffic study would have an impact overall in the project. We’ve 38 proven that in the traffic studies. 39 40 The real concern, the benefits that we see as a City are to the public improvements that come 41 with that type of a widening that cannot be replicated in a trial and I think Curtis did a good job 42 of trying to explain that a little earlier. It’s very hard to provide that same environment, you 43 know, with the trees which would provide the extra sidewalk environment with, you know, the 44 replicated sidewalk widening that doesn’t throw away a very significant capital cost later when 45 you actually implement the improvements. Those things are extremely difficult to measure they 46 47 are more subjective than qualitative and we’re looking at trials we really try our best to measure 1 the qualitative elements that we can measure. And I think the traffic studies that we have already 2 done really do a very good job demonstrating that the impacts from the lane reduction are not 3 there. There is no impact and so, you know, we can’t really replicate those other benefits in any, 4 in any one way because everybody will have a different opinion of it. You know there will be 5 people that just don’t want to see the trial go through, they want to keep things the same and 6 even admit that overall visit to the area may see a benefit that one person will not and, and I 7 think it’s very difficult to measure a trail along the corridor. 8 9 Acting Chair Fineberg: Thank you. Ok, so we’ll go for another round and hopefully one of, 10 actually Staff has a comment. Mr. Williams? 11 12 Mr. Williams: Well I just wanted to suggest in terms of maybe trying to move towards what 13 we’re hearing kind of from you is that what might be appropriate is something that moves the 14 project forward with a couple of categories of comments going along with that. Some are details 15 of that, that we should be looking at as we go by, go on with that like the loading zones. 16 Looking at that parallel parking in that first block type of thing. The diagonal parking and valley 17 gutter kind of issue. Those, those details that we, you think the Council should be sure that we 18 are directed towards looking at within the sort of context of the overall concept. 19 20 And then perhaps some comments about the context that you think the project should be 21 approved. So for instance, if you Commissioner Michael’s comments that the Council needs to 22 be aware of how this as the California Avenue Area Concept Plan comes forward that will be 23 another opportunity and we need to, you know, discuss this in light of that as it comes forward so 24 the two things are sort of joined at that point in some way. Oh, and then contraflow lane was 25 another one of those details kinda to look at as well and maybe this you also on the tunnel thing 26 that that’s an integral part of how this all works and that we really should have a plan developed 27 if it’s not with this project at least know what we’re doing there and, you know, be moving 28 forward to address that parallel track or whatever thing would be and if you all have a comment 29 on trying to look at a trial or you want to forward something to the Council relative to that, I 30 think that would not be inappropriate either. Just thoughts. 31 32 Acting Chair Fineberg: Thank you. In the interest of allowing our public that’s present tonight to 33 be heard, there’s a member of the public who has raised his hand and I will recognize him for a 34 brief comment and then I will close the Public Hearing. Just one moment please. 35 36 Mr. Williams: Well, whether it’s closed or not, well, it’s fine you invited him up now, does 37 everybody get to speak again? I guess that’s the concern. 38 39 Acting Chair Fineberg: Ok. I’m sorry, on a technicality I guess I’m not able to recognize you. 40 Hang on. Let me just open the Public Hearing and then it’s ok and then, go ahead. I’ll open the 41 Public Hearing and then close it again and we’ll return to the Commission. 42 43 Mr. Ekwall: Very good so I’ll just make this brief. Again, just speaking on behalf of ourselves 44 and going back about two years a trial period was discussed seriously in the merchant meetings 45 and then it’s dropped off the radar since. So at every merchant meeting that we’ve attended 46 48 we’ve addressed the issue of a trial period. For us we realize all the other aspects of this project 1 that can’t be replicated, but it is very straightforward and simple to restripe the existing street to 2 identify the lanes of traffic and the new parking that would be offered. That’s not a difficult 3 thing at least in our sense to do. 4 5 And we would much rather suffer some short term impact and realize maybe we were wrong in 6 our decision we should be supportive of the reduction or maybe we were right and it’s changing 7 the public’s behavior in terms of those that use automobiles to get to California Avenue. So we 8 do agree with the idea of a Comprehensive Plan for the entire neighborhood, not just kind of a 9 piecemeal let’s do California Avenue but let’s not address the overall issue of parking, let’s not 10 do a trial period. So we do support that. 11 12 Acting Chair Fineberg: Thank you. Ok, I officially close the Public Hearing. So let’s go for 13 another round of comments and hopefully I’ll hear a Motion out of a fellow Commissioner. 14 Three minutes each, Commissioner Tanaka. 15 16 MOTION 17 18 Commissioner Tanaka: Ok so I’ll make a Motion. So, I think I hear a consensus that in general 19 we’re interested in moving this forward in the context that we have it tonight which is to look at 20 the design, location of proposed sidewalk widening areas, and plaza design, and not necessarily 21 the four to two lane issue. And I, I think it’s important to move this forward and I actually think 22 it’s actually important to move relatively quickly because I think if anyone has walked down 23 California Avenue you can definitely see that a lot of tender loving care is needed on that street. 24 And I think if we have significant delays the economic vitality of the street gets delayed and so I 25 think it’s actually important to move forward. 26 27 So what I’d like to do is make a Motion that, that we move this, this project forward to Council. 28 But I’d like to of course have Amendments from my fellow Commissioners along the lines that 29 Director Williams mentioned so that we can, you know, handle some of the issues about the 30 loading zones, about the counter flow, counter flow parking, or counter flow bike lanes and other 31 issues. 32 33 SECOND 34 35 Acting Vice Chair Keller: Second. 36 37 Acting Chair Fineberg: Ok, Commissioner Tanaka would you like to speak to your Motion? 38 39 Commissioner Tanaka: I kinda did already, but I’ll maybe just get into some of the things that I 40 was thinking about. So first of all I do like Acting Vice Chair Keller’s idea about having a raised 41 counter flow. That seems to make sense to me, I don’t, I’m not necessarily an engineer so that 42 has to be studied. 43 44 Mr. Williams: You raised counter flow, I think you didn’t raise crosswalks? 45 46 49 AMENDMENT 1 2 Commissioner Tanaka: Oh, no I was talking about both things. Well, actually I liked that too, I 3 liked the raise crosswalk, but I also liked the idea about having the… let’s make it an 4 Amendment, yes. I make the Amendment to that Motion; it seems to make sense to me. I’m not 5 married to the idea, so I think it should be studied, I’m not sure it necessarily has to be done. 6 7 Acting Vice Chair Keller: Raised crosswalks are seconded. 8 9 Acting Chair Fineberg: And counter flow. 10 11 Commissioner Tanaka: Crosswalk and counter flow. I also think that the loading zones as part 12 of the design process is already being anticipated needs to be carefully located to areas where 13 there isn’t alleyway parking. And I didn’t hear much about this but I think, you know, parking 14 still gonna be a big issue here so having way finding to the park I know that the parking structure 15 in there, kind of like the Park Boulevard area tends to be less full than other ones so having way 16 findings so people know where parking is, I think is going to be important. 17 18 And I didn’t hear much about parklets in terms of sometimes on Cal Ave. some of those areas 19 get converted to parklets and how that would work, so maybe as that gets developed that could 20 be explored. 21 22 Acting Chair Fineberg: Please continue. 23 24 Commissioner Tanaka: Those are the ones I had, I think my fellow Commissioners are probably 25 gonna have other possible Amendments. 26 27 Acting Chair Fineberg: Commissioner Keller, care to speak to your second? 28 29 Acting Vice Chair Keller: Yes, thank you. So, so a couple of things, so first of all I will say that 30 I appreciate the members of the public participating in this discussion and the work being done 31 by Staff and I think that we can proceed along with the design of this project along with perhaps 32 a, a trial, I’ll be making an Amendment to that effect in a moment. So I’m going to suggest a 33 slight rewording of some of your things. So, the first thing is that… 34 35 Acting Chair Fineberg: Commissioner Keller, I’m sorry, is that a friendly Amendment? 36 37 FRIENDLY AMENDMENT 38 39 Acting Vice Chair Keller: That is a friendly Amendment to the Amendments that he has made, 40 I’m basically suggesting rewording some of the, to clarify the wording of some of the 41 Amendments. So firstly I would suggest that we simply say, “raised mid-block crosswalks” and 42 keep that separate. The second this is that I would suggest improving the contraflow bike lane, 43 for example raised as part of the Park Plaza. And the reason I’m saying “for example” is I don’t 44 think that I haven’t thought that through very clearly, I think that’s the kind of thing that can be 45 considered. I wouldn’t say do that as part of the Motion, but improving it is part of the Motion. 46 50 But you know, “example of raised as part of Park Plaza” is an example as part of the Motion. 1 The next thing is simply saying, is consider, instead of your wording of the loading zones, I 2 would suggest that “considering in consultation with the neighborhood where loading zones 3 should be placed.” Ok? That’s a little bit less restrictive and more clear. 4 5 And I think you talked about way finding. Way finding to parking? Is that something that 6 should be part of the Motion or is that something that is, is really at a different level? 7 8 Mr. Rodriguez: I think that’s definitely an element of the overall plan, so I think that’s fine. 9 10 Acting Vice Chair Keller: So can we not have that as part of the Motion? Great. Well yeah, 11 they’re gonna do it anyways, so ok. And how does Staff feel about exploring parklets? 12 13 Mr. Williams: I think we thought that would be part of the option, I mean what we’re looking at 14 is creating a situation that is flexible that would allow for that, but that would probably be 15 something that, you know, there may be some locations that we suggest identifying those, there 16 may be other options for businesses to propose them and you know, have that so that’s 17 something that’s definitely on our radar to be looking at as part of the detailed design. 18 19 Acting Vice Chair Keller: So, let me suggest that we, that I’m going to suggest a rewording of 20 that if it’s ok, which is “explore parklets” and I’m also gonna suggest “exploring bike corrals” as 21 part of that because that’s something that has been considered elsewhere and these are the things 22 to be considered for where we want them and so that can be added. So do you accept my 23 Amendment, my revisions of your Amendments? 24 25 Commissioner Tanaka: They sound good, thank you. 26 27 FRIENDLY AMENDMENT 28 29 Acting Vice Chair Keller: Good. Thank you. There’s one further friend, there’s two further 30 friendly Amendments I’d like to make. One friendly Amendment is to remove from the design 31 valley gutters. 32 33 Commissioner Tanaka: I guess I would say that, I think there’s ways to solve valley gutters or 34 you could put a post in there to stop cars from going, I don’t’ know which is a better maybe we 35 could let Staff comment about that to see is it better to have valley gutters and posts, or have 36 curbs and I don’t know. 37 38 Mr. Rodriguez: If I may, if I may just try to explain what the concept was. One of the concepts 39 of providing an actual plaza that really has interactive public uses in it, and that is accessible is 40 that when you have that space open for public use you have the parking spaces blocked off for 41 daytime use over the spring and summer you don’t want to provide that barrier of a curb, so there 42 is benefit in not having the curb for this specific flexible use. 43 44 So one of the concepts was that to provide though the safety for the barrier is to do exactly things 45 that you have all been talking about and the things that we didn’t’ really highlight are that within 46 51 the design we are already showing the use of bollards that would be used to say, stop a vehicle 1 that, you know, actually wanted to move forward. Of course parking blocks would be another 2 appropriate use of a type of a treatment in that case when parking is in use and the flexible space 3 as public plaza is not in use and so those can also be physically removed, but again, you know, 4 when, when you have it open for public space you don’t want to provide a barrier or else it’s not 5 really there for people to use. So I think that’s definitely a design element that we can continue 6 to work out. There’s a lot of ways to provide those barriers and more aesthetic treatments. It 7 doesn’t have to be a ball; it could be a nice seating bench that’s made of stone, those types of 8 treatments, etcetera. There’s definitely more of a design treatment element. 9 10 Acting Vice Chair Keller: So let me amend, restate, retry again with a different friendly 11 Amendment which is that any valley gutters are coupled with appropriate car stops. Is that fair? 12 13 Commissioner Tanaka: Sounds good to me. 14 15 FRIENDLY AMENDMENT 16 17 Acting Vice Chair Keller: Ok, and the last thing is, is with respect to a trial. And what I’m going 18 to suggest as an Amendment is that “Staff solicit from the merchants and the community a 19 proposal for a trail and for Staff to consider implementation of such a proposal.” Yes? 20 21 Commissioner Tanaka: So I’ve actually been through two trials in College Terrace. One is the 22 traffic calming trial and the other one is a residential permit parking trial and trials take a long 23 time. And one thing I’d like to hear from Staff about this is do we lose funding, is there an issue 24 with that? And also, there’s also, it kind of went with what Acting Chair Fineberg talked about 25 there’s incredible disruption if you do it really kind of haphazard where you put a cone there and 26 you do this and that and it kind of, I think it hurts their vitality if you do something for extended 27 period of time. And so I’m worried about the economic dominate to the businesses with some 28 sort of hokey trial that might happen. So I don’t know if maybe perhaps Staff might comment 29 about that. 30 31 Mr. Rodriguez: You know, I’ll try to comment from the perspective of the issue of the funding. 32 You know, we deferred our grant source voluntarily for a year while we worked out some of the 33 issues with kind of the active ligation that was occurring as well as trying to kind of finalize 34 some of these issues here with design so we could come to you tonight. But we did that 35 voluntarily because you know the VTA worked with us knowing that there was some concerns 36 from the community. If we can’t, if we get the money back and then we want to now say we’re 37 not ready because we’re doing something else I can’t speak for the VTA or the funding agency 38 but my thought is just having worked with that agency for the last 15, 16 years is that we would 39 likely give it up and we would have to then in the future not have a secured fund source or be 40 forced to be reapplying for a grant to recover that fund source. 41 42 Mr. Williams: If I could just add, I would just suggest that if there’s language like what’s been 43 suggested that it basically be that you recommend and its again a majority of you recommend, 44 that you recommend that the Council direct Staff to do those things that you said, to solicit, 45 etcetera and to, I don’t know if you used the word consider, but to consider a trial because I don’t 46 52 think, you know, and I don’t think you were saying you should do it, necessarily do a trial just 1 because somebody’s proposed it to, we have to consider it and ultimately we’d probably have to 2 go to Council to do it then. 3 4 Acting Vice Chair Keller: Yes and I certainly, this is a recommendation to Council and my, my 5 suggestion was to consider implementation not to go ahead and implement it, but to consider 6 implementation of the trial. I thought that, I’m not saying that, we have to. Firstly we have to 7 evaluate the proposal that comes back and determine what the metrics are and all that. But that I 8 think that it is a good idea to give the neighborhood an opportunity to propose something and 9 then you’ll have something on the table so that you actually know what it is they’re proposing. 10 Because I think that, that right now a trial is an amorphous kind of, kind of concept and it’s, you 11 know, different people have a different idea of what a trial might entail or what it might not 12 entail and without having specific proposal of a trial on the table it’s hard to, it’s hard to evaluate 13 whether that’s a good thing or not. 14 15 Commissioner Tanaka: so I sort of like the spirit of trials and I’m a big fan of trials in general. 16 And I think if we could, if there’s a way to structure it where we don’t endanger our funding 17 source, because I think this area needs, needs money right now. I think that’s pretty clear. And 18 it’s not like the City has money laying around otherwise. 19 20 But I also think we don’t, I think we’ve gone through a pretty long process. I think, and as I said 21 earlier I think speed’s important. I think kinda getting through this quickly and doing it right is 22 important. And having it drag out for another couple of years is not necessarily a good thing for 23 anyone. So I think, if you in terms of an Amendment maybe perhaps we could add a adder to 24 your Amendment, or an Amendment to your Amendment which is perhaps having it not 25 endanger our funding source, and not delaying implementation if there’s a way to do that. I 26 think that would be the way, that’s the way to make it kind of a win/win situation versus having 27 you know significant delays we lose the money and then there’s not enough money for the, for 28 the improvements to Cal Ave. I think that would be, perhaps a better way of doing it. 29 30 Acting Chair Keller: So in the spirit of what you have said, I’m going to, and based on the 31 suggestion I have from Staff, that part of the Motion is to recommend that Council direct Staff to 32 solicit from the merchants a proposal for a trial for Staff to consider implementation of that trial 33 in a manner that does not endanger the funding source and does not endanger, does not delay the 34 schedule for permanent implementation. 35 36 Commissioner Tanaka: Just a quick question for Staff. Does that sound reasonable? Ok. Yeah, 37 sure that sounds good to me. 38 39 Acting Chair Keller: Thank you, so with that I hope that this will be a successful project and I 40 hope that we’ll in this way have the community on board and that’s my dearest hope for this 41 improvement on California Avenue and I look forward to coming in several years and seeing 42 happy merchants and happy shoppers. A couple of years from now is two years. Yeah, exactly, 43 great. 44 45 53 Acting Chair Fineberg: Ok, so Commissioner Michael do you have any comments or 1 Amendments or other actions? 2 3 FRIENDLY AMENDMENT 4 5 Commissioner Michael: So one Amendment, a Friendly Amendment that I propose there’s been 6 some comments about the value of consulting with the neighborhood merchants in particular and 7 we’ve also talked about suggestions about different changes to the details of the, of the design 8 and I think I would propose that we have a, a public meeting scheduled after the design changes 9 or the proposed design changes, or the proposed final design is available for discussion that that 10 be scheduled to have a public meeting to, to inform everybody who’s interested about what those 11 changes might be and if you have any feedback from that meeting, you know, great. So that 12 would be the one amendment that I would propose. Separate meeting with the public that you 13 would outreach. You’d have a meeting. 14 15 Mr. Williams: Yeah, we’re, we have, we’re going to have a number of meetings with the public 16 as we move along through the design. 17 18 Commissioner Michael: Ok, but I’m just so I know that all these things we’re talking about 19 tonight once you have them kind of penciled out, you will definitely (interrupted) 20 21 Mr. Williams: Have a community meeting. 22 23 Commissioner Michael: Ok. Alright, well maybe that Amendment is not needed in that, if that’s 24 part of the plan already. 25 26 Mr. Williams: It, we probably think it isn’t needed but it doesn’t hurt either because we’re going 27 do it, so. 28 29 Commissioner Michael: Ok, let’s schedule public meeting to full air, all Staff’s design changes. 30 As a comment, so earlier this evening I was, as a Friendly Amendment. 31 32 Commissioner Tanaka: Yeah, sounds good. 33 34 Acting Vice Chair Keller: I’m simply going to suggest that its Staff to schedule the public 35 meeting, etcetera, etcetera. 36 37 Acting Chair Fineberg: Ok, Maker and Seconder have accepted that Friendly Amendment. 38 Commissioner Michael. 39 40 FRIENDLY AMENDMENT 41 42 Commissioner Michael: Yeah. It’s fine. So earlier this evening I was, I was strongly in favor of 43 a trial and then I’ve been thinking about it and listening to what everybody has to say and I think 44 the feasibility of a trial of an adequate duration to provide meaningful data without 45 compromising the funding source is a, is undesirable. But also I think I’m not sure what a, how 46 54 to design a trial. I think painting different stripes on the ground is not necessarily a proper 1 experiment in terms of how the public is gonna react, what the impact on the businesses would 2 be. Because you’re going to constrain access to the street without any counter veiling attraction 3 to bring people to the street and beautification is really an attraction, and the constraint on the 4 lanes and the change in parking is, it’s not gonna be meaningful, I think it will put the project in 5 jeopardy of funding and if you just hypothetically if you, assume that the public funding wasn’t 6 available let’s say you made an assessment, a special assessment of all the merchants to pay for 7 this benefit, would they pay? Would that be popular? 8 9 There might be some thinking about, you really want to benefit the merchants, the shoppers, the 10 neighborhood. And so I think doing a trial of simplify the adverse impact of constraining the 11 lanes isn’t to me, give you anything. You could simulate that result and you could know what 12 the result’s gonna be, people are gonna be frustrated. So I would personally believe that’s not a 13 useful activity. 14 15 On the one thing you’ve talked about the issue of the, the design of the parallel parking in that 16 first block off of El Camino on the south side of California Avenue. If the issue is people 17 coming off of El Camino and then somebody sort of holding, delaying, waiting for somebody to 18 exit if you reverse the parallel parking to the north side of California in that block you avoid that 19 problem. And also it looks like, I’m looking at you, you’re the sheet if you put the diagonal 20 parking on the south side you’d pick up quite a few more spaces. So, I would actually propose 21 an amendment that that diagonal parking relationship in that first block be reconsidered. 22 Friendly Amendment? 23 24 Acting Chair Fineberg: Staff would like to respond to that if they could before we discuss that 25 further. 26 27 Mr. Rodriguez: You know, again one of the things we mentioned that really the bigger concern 28 we heard from the community when we really started the project and it’s been going on now a 29 couple years was that there was just concern about angle parking operations at 60 degrees in the 30 first block. And so the reason why we have this recommendation for parallel parking is one 31 because that is just the ideal location for sidewalk widening for the existing land uses that are 32 there and because that will continue and the widening really supports those types of restaurant 33 activities and uses, and secondly it really, it did respond to the community concern. And I think 34 he did it in a very good way. And when you’re talking about the amount of traffic that’s coming 35 onto California Avenue that is gonna be moving through that area unlike other areas, you know, 36 you really meter your traffic as an entry to California Avenue from El Camino Real. One you’re 37 either coming because your turning left coming from downtown and that’s a small amount of 38 traffic that enters, you know, up to 5 or 6 cars at a time, you know, on a green. You have cars 39 that are coming on a right turn from north El Camino come from Page Mail that’s a very short 40 amount of vehicles, you know, a certain amount of time. Or you have cars that are coming from 41 College Terrace across El Camino Real. So there’s never a scenario where you have a 100 cars 42 entering the street all at once on that street. That never occurs. You already naturally meter 43 traffic because they enter California Avenue because of the El Camino traffic signal. 44 45 55 So the concern that, you know, there will be a significant amount of delays and backups, I don’t 1 think that that will be the case. And that was specifically one of the elements that we looked at 2 with, with the traffic study very early on was kinda this friction that exists on a roadway when 3 you have cars kinda entering angled parking spaces or other types of spaces so I don’t think that 4 is a concern that we need to change the design as you’ve seen today. I think that the merits of 5 the benefits that you see with the parallel parking on that south side I think outweigh those 6 concerns and then the amounts and operation vehicle, the roadway itself kinds negates the 7 concerns as well. 8 9 Commissioner Michael: Well, if I can just respond to that. So I defer to your expertise, but just 10 as a parker it doesn’t make sense to me. I would, the language was to have it be reconsidered. I 11 didn’t say change it, but I would seriously urge that you make a new look at that because just 12 going up and down streets where there is parallel parking such as University or diagonal parking 13 I think that the behavior of motorists, my behavior is such that there’s a much bigger potential 14 for delay with the parallel parking. It’s just a more complex maneuver and it, people get hung up 15 doing that, but if there a diagonal spot that’s open people sort of zip out and zip in. And I think 16 your comment about sidewalk widening is, you know, you’re gonna be able to widen your 17 sidewalk on one side or the other. Yeah, so. So Friendly Amendment to consider or reconsider 18 that orientation. 19 20 Commissioner Tanaka: So, I, because it’s to consider and I think Staff will do the analysis and 21 figure out which way makes, makes the most sense. I think to me it sounds fine to reconsider it 22 because I understand your point of view from a parker’s point of view and it’s at the entrance. 23 So I think for staff to reconsider it’s probably not a bad idea. 24 25 Acting Vice Chair Keller: so I’m assuming that the working of that amendment is to consider, to 26 reconsider whether there should on the first, on the portion between El Camino and the first, I’m 27 sorry, between El Camino and Ash Street, the which side has parallel parking and which side has 28 angled parking. That’s I think the Motion. Good right? 29 30 Commissioner Tanaka: Yep. 31 32 Acting Vice Chair Keller. Great, so I will accept that Friendly Amendment. I just want to point 33 out in terms of considering that Friendly Amendment that it affects the length of the three lane 34 stacking for right turns thought traffic and left turns approaching El Camino from the east. And 35 that stacking may be, how that stacking works out maybe different depending on the nature of 36 that because it might shorten the left turn lane, so. I don’t know that’s, that’s one of the 37 considerations have to be and I’m not making that out as part of the amendment, but I’m just 38 pointing out that that’s one of the considerations that needs to be done when considering that 39 amendment. Thank you. 40 41 FRIENDLY AMENDMENT 42 43 Acting Chair Fineberg: Ok. I’m gonna make a couple quick comments and then I think I’ve 44 captured most of the Motion but we will have the benefit of having verbatim minutes and also 45 56 other people. I know I missed the first two items that Commissioner Tanaka proposed so I’m 1 gonna need some help getting those back in. 2 3 Ok, my comments. On the last item I have no object that there be something saying consider 4 these to parallel versus diagonal parking on the south side of El Camino. However, the reason 5 it’s now parallel is because it was perpendicular before and there were safety issues about cars 6 backing up so in reverse, cars coming from El Camino at a fairly high rate of speed onto Cal Ave 7 and then a diagonal parker with possibly limited or no visibility depending on how capable the 8 driver is backing up into the flow of oncoming traffic. So either way, you either get people who 9 can’t back up properly casing accidents or you get parking trolls blocking the flow of traffic 10 waiting for, you know, I was guilty of it the mom with the stroller that takes five minutes to load 11 up the car and there’s somebody who can’t drive 10 feet to the next parking space in front. 12 13 So neither solution is ideal. Now the solution may be that you get rid of parking spaces and 14 make it really safe and get everybody into Cal Ave. but reducing parking spaces isn’t a good 15 choice either. So you know maybe that’s a place where there’s some additional widened 16 sidewalks and that’s where the parklet goes and we have some tradeoffs of taking a parklet from 17 somewhere else, but we can’t answer that, what the ideal solution is right now. So I trust and I 18 know, you know I had to learn through the years of being commissioner that the initial stage of a 19 project there just isn’t information that you want. There isn’t that sense of certainty that it’s 20 gonna work and then later in the design stages when $100’s of thousands are spent and the 21 details are drawn then you have the detail and you can say it’s good, or it’s not good. And we 22 just aren’t there yet. So I’m in that place where I’m happy that Staff will examine it and the 23 decisions of what the right answer is will be made later. 24 25 So, one additional Friendly Amendment. We talked about the tunnel improvements at Park 26 Plaza so I’d like to add a Friendly Amendment that we explore future tunnel improvements as it 27 comes up in Park Plaza especially relating to the contraflow bike lane. 28 29 Commissioner Tanaka: Is that in the scope of this project, the tunnel? At all. 30 31 Mr. Williams: No, the design it isn’t in the design scope but I don’t know that I heard that being 32 the suggestion was I think to sort of put that on our agenda for something to look at as a priority 33 to because we need to connect. 34 35 Acting Chair Fineberg: No, I’m actually not thinking of the entire tunnel so I’m not saying 36 agendized it as a different item, but I’m envisioning that somewhere within the tunnel is s ramp 37 that comes up into the plaza. At some point it can either go straight right or left and then do we 38 raise it, lower it? And there’s a gazillion options for how to properly handle it. We talked about 39 the idea before of maybe part of it being raised. But whether it should come up and go right, left 40 straight, around, make a U-turn be in bollards, be in the roadway with a contraflow. I’m seeing 41 the expiration as more what does it do when it’s very close to hitting grade? 42 43 Mr. Rodriguez: If I could just provide a quick response I think all the comments that you’re, 44 you’re mentioning Commissioner is part of the design process that we will go through anyway. 45 And so I think that, you know, the response, the comments that that we heard from the 46 57 community as well as the Commission I think that we do need to spend a lot more time looking 1 at the plaza design and how the interaction happens in and out of the tunnel onto the plaza itself 2 so, nothing from the suggestion? The Amendment that you mentioned to me has a concern. 3 4 Acting Chair Fineberg: Ok, so let me change that then to “explore the future tunnel ramp exit.” 5 So it kind of puts an end on how deep we go. So explore future tunnel exit ramp improvements 6 in the Park Plaza. 7 8 Commissioner Tanaka: Sounds good. 9 10 Acting Vice Chair: I think it’s fine I’m just suggest one word change, which is “explore the 11 future of, of future tunnel exit improvements in the Park plaza design. In other words when 12 you’re doing the design take into account what changes might happen to a future tunnel so that 13 we don’t have to completely redo the design of the Park Boulevard Plaza but that we’ve 14 anticipated those changes and they could be made without too much impact. That’s the idea. 15 Thank you. 16 17 Acting Chair Fineberg: So adding the word “design” at the end. I’m fine with that if the maker 18 and seconder accept it. 19 20 Commissioner Tanaka: Accepted. 21 22 Acting Chair Fineberg: Ok, let me try and recap. I think I’ve captured most of them but I do 23 need some assistance with the first two. The Motion is that we move the project forward to 24 Council with a review of the issues relating to the design phase. If Staff, does Staff have the first 25 two items that Commissioner Tanaka mentioned? 26 27 Mr. Williams: One was look at raised crosswalks and counter flow. And second was loading 28 zones. Loading zones. Looking at loading zones relative to where the, there are not, is not alley 29 access. 30 31 Mr. Rodriguez: That’s what I had also. 32 33 Acting Chair Fineberg: Ok. So the Motion is as I initially stated before and the items to be 34 considered would be consider the loading zone locations in consultation with the neighborhood, 35 improve the counter flow bike lanes with it being possibly raised. I will leave it to Staff to add 36 the correct verbs for consideration, evaluate… raise mid-block cross, raised mid-block 37 crosswalks, explore parklets and bike corral locations, valley gutters to be coupled with car 38 stops, Council to direct Staff to solicit from merchants a trial as long as, a proposal for trial as 39 long as it does not jeopardize funding sources or cause delays. 40 41 Mr. Williams: Merchants and the community. 42 43 Acting Vice Chair Keller: Yeah, I think that that’s Staff, Council to request Staff to solicit from 44 merchants and community a proposal for a trial and Staff to consider implementation in a 45 58 manner so that it does not endanger funding source or delay permanent implementation of the 1 project. 2 3 Acting Chair Fineberg: I’m seeing appropriate heads nodding. Staff to schedule at least one 4 public meeting to present the design proposals and that would be outside of Planning 5 Commission hearings that are required. Consider the use of parallel versus diagonal parking 6 along the southern end just off El Camino. And finally, explore future tunnel exit ramps 7 improvements in the Park Plaza design. Do I see any comments from Commissioners about 8 other items that have been missed? Commissioner Keller. 9 10 Acting Vice Chair Keller: I’m just going to slightly amend, correct I think the wording of what 11 you stated. It was with respect to the, the west most block of California Avenue and it’s not just 12 on the south side, it’s on the north side because you would swap which is parallel and, and so we 13 have to be considering both sides, not just one side. 14 15 Acting Chair Fineberg: Ok, so strike the mention to the side of the road and that would be just 16 “consider the use of parallel versus diagonal parking on both sides at the block at El Camino.” 17 18 Acting Vice Chair Keller: Thank you. 19 20 Acting Chair Fineberg: Do I see any, Commissioner Tanaka? 21 22 Commissioner Tanaka: Yeah, I, after hearing Commissioner Michael’s comment about the trial I 23 actually share a lot of those reservations because I’ve been through two trials and they’ve both 24 been extended and it’s really hard to do a good trial so, but I’m ok with an amendment being in 25 there but I just want to see if Commissioner or Acting Vice Chair has a different opinion after 26 hearing Commissioner Michael’s thoughts. 27 28 Acting Vice Chair Keller: Well I’m certainly sympathetic with the difficulty that, that a trial 29 presents but I think that if it is possible for the, for the merchants and community to propose a 30 trail that’s actually workable and that can be measured in a reasonably short period, reasonably 31 short period of time so that we can see that, that the traffic impacts and I think that the issue is 32 that the traffic impacts should not be horrendous. It might, I would expect that traffic might slow 33 down a little bit, and so if we have metrics that say that the traffic is, you know, doesn’t get to 34 LOS-D or whatever the right, you know, whatever the appropriate measure of that is. But if we 35 understand that it will slow down traffic, that they will be in some increased congestion, but if 36 the amount of increased congestion from a trial is not such that it makes the street impassable 37 and it makes it impossible for the people to get to and from, that’s the kind of thing we’re talking 38 about. And so, I think if they can propose something and Staff can implement it I think that 39 would be good, I’m not saying that Staff has to implement it, but give the community the 40 opportunity to propose something. 41 42 VOTE 43 44 Acting Chair Fineberg: Ok, seeing that we have no more Amendments, let’s vote. All 45 Commissioners in favor of the Motion? It passes unanimously with Commissioner Tanaka, 46 59 Commissioner Fineberg, Commissioner Keller, and Commissioner Michael. And absent is 1 Commissioner Martinez and not participating is Commissioner Tuma. Thank you. We will 2 continue, let’s take a three minute break and we will continue with some Commission business 3 matters. 4 5 MOTION PASSES (4-0-0-2, Martinez, Tuma absent) 6 July 2012 CALIFORNIA AVENUE – TRANSIT HUB CORRIDOR STREETSCAPE IMPROVEMENTS PROJECT FREQUENTLY ASKED QUESTIONS What is the California Avenue ‐ Transit Hub Corridor Streetscape Improvements Project? The project includes streetscape enhancements along California Avenue between El Camino Real and the Park Boulevard Plaza such as: enhanced raised crosswalks, new sidewalk seating areas, upgraded sidewalk amenities (benches, bike racks, trash receptacles, news racks, and information kiosks), new street light fixtures, new gateway signs and monuments, street repaving, and redesign of the Park Boulevard Plaza, including implementation of a new public art fountain, outdoor seating areas, and enhanced bicycle parking facilities. The project also includes reduction in vehicle travel lanes from four lanes to two to accommodate sidewalk expansion and traffic calming features. For more information, please visit: www.cityofpaloalto.org/calave. Where did this plan come from and how does the City’s Comprehensive Plan align with this project? Comprehensive Plan policies and programs frequently emphasize “street improvements that could make substantial contributions to the character of Centers, including widening sidewalks, narrowing travel lanes, creating medians, restriping to allow diagonal parking, and planting street trees” (Program L‐18 and Policies T‐22 and T‐23). The California Avenue – Transit Hub Streetscape Project is expected to result in the following benefits: • provide improvements for pedestrian, bicyclist and automobile safety; • enhance the overall appearance of the street and encourage pedestrian activity; • revitalize the plaza area for public use; and • maintain high levels of service for vehicle use These improvements serve to support retail vitality along the street, create a sense of identity, and encourage new pedestrian/ transit oriented residential development that will patronize the local businesses and support the use of public transportation, especially Caltrain. What is the schedule for the project? Preliminary design, which includes sidewalk widening options, will continue through September 2012. The final design phase will continue through Summer of 2013 with construction beginning in the Fall of 2013. Additional outreach meetings will continue to be scheduled for community input on the final design. Mar ‘12 Jun ‘12 Sept ‘13 Dec ‘13 Preliminary Design Final Design Fall ’13 Construction Attachment D California Avenue Streetscape FAQs Page 2 What is the status of funding for the project? The City of Palo Alto deferred its $1.2 million grant funding for the project until 2013, but expects to receive renewal of the funding in early 2013. The design phase of the project is locally‐funded with final design in the Summer of 2013. Construction is anticipated in the Fall of 2013. Does the project include a reduction of the number of travel lanes on California Avenue? Yes. The project includes a restriping of California Avenue that provides two travel lanes (one per direction). At intersections, turn lanes and some driveways, turn lanes are maintained to help maintain roadway capacity. How long has the Streetscape project been in development? Has a two‐lane approach been part of the prior plans? The City has been pursuing improvements within the California Avenue Business District since 2004. Funding for improvements has been contingent upon grant‐funding opportunities. The City pursued four different grant funds since 2004 and was awarded a $1.8M grant in 2010 from the Valley Transportation Authority (VTA). The City agreed to defer the funding available in 2012 until 2013 to allow pending litigation to be completed. All grant submittals pursued by the City prior to the current grant included a two‐lane approach, generally with the support of the California Avenue Area Development Association (CAADA) as it was comprised at that time. How will the reduction in travel lanes affect traffic on California Avenue? Wasn’t the street designed for four lanes? No significant traffic impacts are expected. California Avenue was originally designed as a four‐lane arterial street, providing access across the railroad tracks to Alma Street and beyond. Upon creation of Oregon Expressway /Page Mill Road and its accompanying grade separation in the early 1960s, the grade crossing was eliminated and California Avenue now ends at Park Blvd., eliminating through traffic. Santa Cruz Avenue ‐ Menlo Park, California California Avenue Streetscape FAQs Page 3 Has a traffic analysis been considered for the reduction to two lanes? How does traffic compare to streets that were narrowed in other cities? A traffic study of the project was completed in 2010 as part of the grant application process and determined that there would be no significant impact from the lane reduction to two lanes. A complete copy of the traffic study is available at www.cityofpaloalto.org/calave . Data below compares traffic volumes on California Avenue with those on streets with two–lane configurations in nearby “downtowns” and current daily traffic volumes (ADT) for those streets, all of which are about 3 times the volume of California Avenue. City Street ADT Palo Alto California Ave. 5,280 Palo Alto University Ave. 18,700 Menlo Park Santa Cruz Ave. 15,445 Mountain View Castro Street 14,297 Los Gatos Santa Cruz Ave. 16,000 Will the two‐lane configuration handle traffic in the future, such as that envisioned in the California Avenue/Fry’s Area Concept Plan and pending developments in the area? Each individual project within the California Avenue/Fry’s Area Specific Plan may, depending on its size and location, require a separate traffic study to evaluate its project impacts, including traffic and other environmental factors. The City’s traffic study for the California Avenue ‐ Transit Hub Streetscape project analyzes future project volumes necessary before any significant impact under a two‐lane operation may be realized, and anticipates that there would be no significant impact (exceeding acceptable levels of service), even with substantial new development in the area. The basis for this conclusion is that the roadway capacity is considerable (see comparisons above to other similar streets), and that trips from most new development will probably use roads other than California Avenue for access. The traffic report is available at www.cityofpaloalto.org/calave. Why is a two‐lane road preferable to the current four lanes? The lane reduction will help improve pedestrian and bicyclist accessibility and safety and will provide for current on‐street parking to be brought to current design standards. The proposed project will allow for a “Complete Street” design concept that expands sidewalk opportunities for pedestrians (including sidewalk widening, bulbouts and safer crossings) and allows for the development of a new sense of place, enhancing the existing community experience and enhancing economic vitality. Castro Street – Mountain View, California California Avenue Streetscape FAQs Page 4 What benefits are expected from the streetscape project and lane reduction on California Avenue? Where has this been done before? The project is expected to create a new, more vibrant place. The street modifications reduce the extent of asphalt and landscape to allow for more tree plantings, pedestrian amenities, and public art. Vitality is improved as more seating is available for restaurants and cafes, and as the street evolves to a “place” comfortable for public gatherings both on a daily basis or for special events bringing the public to the area. In addition to local examples of two‐lane “main” streets on the Peninsula (Los Gatos, Menlo Park, Los Altos, Mountain View, etc.), some further examples can be found in:  Mill Avenue in Tempe, Arizona: (www.planning.org/greatplaces/streets/2008/millavenue.htm);  Bird Rock area of La Jolla near San Diego: (www.sandiego.gov/planning/documents/pdf/trans/birdrock.pdf) and  Valencia Street in San Francisco: (www.sfdpw.org/index.aspx?page=1174) More information can be found on the project website at: www.cityofpaloalto.org/calave. Does the project result in a loss of parking along California Avenue? No. The latest Concept Plan shows a net gain of 4 additional on‐street parking spaces. Further opportunities for additional parking may be available as design is finalized. The final design will include sidewalk and pedestrian‐scale lighting improvements that will affect the final on‐street parking count. Does the project affect existing trees planted along California Avenue? No. All existing trees will be preserved. Additional landscaping, including more trees, is proposed at the Park Plaza and throughout the project limits as space permits. Will tables and chairs on the sidewalk be available to adjacent restaurants? Yes. The City will work with merchants to locate seating areas and tables in locations beneficial to restaurants, and will relocate other streetscape features, such as newsracks and bikeracks, so they are not obstacles to patrons. Mill Avenue ‐ Tempe, Arizona California Avenue Streetscape FAQs Page 5 What will the City do to minimize impacts on California Avenue businesses during construction? City staff will be scheduling meetings with California Avenue business and property owners to discuss construction staging and operations to minimize impacts during the construction of the project. The purpose of the meetings will be to gather input from merchants and businesses regarding critical business hours (e.g., deliveries, events, peak business, etc.), retaining access for customers and deliveries, and providing City assistance in marketing/publicizing area businesses during construction. What effects will the lane reduction have on loading and unloading for businesses on the street? Do the plans provide for loading spaces? California Avenue currently does not have any designed loading zones marked on the street. The current draft design for the project includes the addition of 3 loading zones along California Avenue at Ash Street (north side), Birch Street (south side), and Park Boulevard (south side). Requests for additional loading zones will continue to be considered. The existing loading zones located on New Mayfield Lane and on alleys behind existing businesses will continue to be available for merchants. Over 80% of the street blocks on California Avenue have existing alleys behind their businesses. Has the City communicated the plans to the merchants on the street and nearby? Since the beginning of the design phase of the project, the City has held a total of six (6) community meetings with surrounding residents and businesses to present design plans and collect input on the plaza design and the streetscape elements of California Avenue Streetscape project. In addition, City staff held two (2) merchant focused meetings to discuss comments on the proposed plans and to discuss construction phasing. Additional meetings will be held as the project is advanced through the design phase. Additional input will be requested from the community and business merchants as the design plans are finalized. Main Street – Hendersonville, North Carolina Preferred Street Alignment Plan El Camino Real to Ash Street South Side Sample Widening Attachment E Preferred Street Alignment Plan Ash Street to Birch Street Sample Bulb-Out Widening Attachment E Preferred Street Alignment Plan Ash Street to Birch Street – Seasonal Barrier Attachment E TRASH REMOVABLE BOLLARDS BOLLARDS PLINTH AND POT -TYP REMOVABLE BOLLARDS TRASH Palo Alto & Herbal Medicine Preferred Street Alignment Plan Birch Street to Park Blvd Added Enhancement Areas In Response to Council Attachment E CALIFORNIA AVENUE TRANSIT HUB PALO ALTO, CA APRIL 2O12 PLAZA 0 5 10 20 SCULPTURAL ELEMENT WITHSEAT ROCKS SURROUNDING BOLLARDS BOLD FOLIAGE & COLOR PLANTING BENCHES BOLD FOLIAGE & COLOR PLANTINGAS UNDERSTORY BIKE RACKS INTEGRAL COLOR CONCRETEPAVING PANELS WITHCONTRASTING BANDS POTENTIAL PARKING (4 STALLS) FLOWERING TREES G PO (4 GREEN SCREENAT K RAIL Minor, Beth From: Sent: To: Cc: Robert Moss <bmoss33@att.net> Tuesday, July 17, 2012 5:00 PM Council, City Williams, Curtis; Yazdy, Shahla 12 JUl '8 AH 9: 59 Subject: Reconfiguring California Avenue -Try Before We Buy Mayor Yeh and Councilmembers July 17, 2012 Reconfiguring California Avenue -Try Before We Buy The proposals to reconfigure California Avenue by widening sidewalks, improving landscaping and reducing traffic lanes from four to two was recommended for approval by the Planning and Transportation Commission with some clarifications requested. This project has been under consideration for almost three years and still has some major issues that must be resolved before any permanent changes are made to California Avenue. The biggest is whether the lane reduction will have any negative impacts on traffic, parking, or commercial viability of businesses. The only way to really see the impact of lane reductions is to test it first and to delay permanent changes until the test is complete. Improving and upgrading the California Avenue business district has been a topic of discussion for years. CAADA considered the situation more than four years ago and decided that the best approach was widening sidewalks, adding landscaping and trees, allowing restaurants to expand seating onto the widened sidewalks, and improving transit to and from the area. They took their proposals to city staff and councilmembers resulting in a series of meetings of the PTC and Council to develop plans for improvements. Many business and property owners became upset when they learned of these plans as they didn't feel that they had been consulted or that their concerns were being heard. Nevertheless the CAADA proposals were accepted as the desire of property owners and businesses along California Avenue and adopted by staff. Getting the $1,175,200 grant from VTA for modifying California Avenue solidified the staff position that this was a functional and desirable change to the street. In fact many business owners were not on board with the change. They felt left out ofthe discussions and decision making by CAADA and staff. Letters, full page ads in local papers, and comments at Planning Commission and Council meetings by many business owners in the California Avenue area make it clear that they feel ignored and that their very real concerns were arbitrarily dismissed. Planning commissioners .' acknowledged this inadequate treatment of businesses when they recommended a trial of the lane reduction before it is finalized. This is very reasonable and will somewhat address the concerns of the many people that doubt reduCing California Avenue from four to two lanes won't have negative impacts. Improving the appearance and landscaping of California Avenue is a relatively minor controversy. Everyone agrees that street improvements would be nice. The major issue is traffic impacts, and how much sidewalk widening and modification is acceptable before negative traffic impacts occur. Staff raised legitimate concerns that a trial of the lane reduction won't be fully accurate since the sidewalk and landscape changes won't be included and can't be evaluated. That is correct, but not a major impediment to the traffic impact study. A trial that simulates widening sidewalks with temporary bollards or parking bumpers and restriping the street to represent the proposed two-lane configuration should allow traffic and business impacts to be determined. The wider sidewalk area could accommodate rented potted trees and plants to represent upgraded 1 ,landscaping. Restaurants could be allowed to place tables outdoors in the wider sidewalks, and location of loading zones could be verified as adequate or troublesome. Traffic impacts can be quantified by taking before and after traffic counts on California, Cambridge, Grant, Sherman, Sheridan, Ash, Birch and Park. Measure travel times both ways along these streets, and report accidents on those streets since 2005 and during the test. If problems such as wrong loading area location, increase in accidents in a specific area, or congestion at intersections are identified during the test modifications can be made and the impact ofthe changes evaluated. The trial should last at least 6 months, probably longer so that seasonal traffic variations are accounted for. Impacts on businesses can be estimated by asking participating businesses to compare income pre and post trial. A more quantitative evaluation would be sales tax revenues before and after during the same time periods. While this won't give data on service-oriented businesses it will give valid data on retail store impacts. Unfortunately the trial won't show the impacts of developments due to the designation of California Avenue within Yz mile ofthe CalTrain station as our only Preferred Development Area, but those changes probably won't be significant until 2014 or later. However the baseline data on traffic flow and retail sales can be used to evaluate the impacts offuture developments in the California Avenue PDA when compared with current conditions with four lanes for traffic and the two-lane simulation before significant development occurs in the area. Please adopt the recommendation of the Planning Commission and dozens of businesses in the California Avenue area and approve a traffic study that includes simulation for widened sidewalks, loading zone locations, and lane reduction from four to two lanes. It should last at least six months, but a one-year trial will give data over the normal range of business and shopping activity. Yours sincerely, Bob Moss 4010 Orme St. 650-493-2178 2 Minor. Beth From: Sent: ":t,,)",,·, "":\.-- Pat Marriott < patmarriott@sbC910b~i~~f?/·gLr;~F; ~~ i~i~1'c~~ Wednesday, July 18, 2012 9:48 AM . To: catt188@gmail.com 12 JUl 18 M~ Q: t; I Council, City; Keene, James; Williams, Curtis; Rodriguez,1ai'rn~ RE: From Mollie Stone's Market requesting a painted line test Cc: Subject: NO, they will not. You have to send to city council@city.palo-alto.ca.us Cc: ja meso keene@cityofpaloalto.org; cu rtis. williams@cityofpaloalto.org; ja im e.rod riguez@cityofpaloalto.org From: catt188@gmail.com [mailto:catt188@gmail.com] Sent: Wednesday, July 18, 2012 9:24 AM To: Pat Marriott Subject: Fwd: From Mollie Stone's Market requesting a painted line test Fyi Will council members see this see addressed to shahla yazdy? ----------Forwarded message ---------- From: David Bennett Date: Wednesday, July 18,2012 Subject: Fwd: From Mollie Stone's Market requesting a painted line test To: "catt188cmgmail.com" <catt188cmgmail.com> FYI Dave Bennett Begin forwarded message: From: David Bennett <dbmollie@gmail.com> Date: July 18,20126:15:23 AM PDT To: "Yazdy, Shahla" <Shahla.Yazdy@CityofPaloAlto.org> Subject: From Mollie Stone's Market requesting a painted line test Hello Shahia, Do any of the other projects mentioned in the frequently asked questions have a supermarket that survived this lane reducing project at the end of a dead end street? Are all the other projects mentioned thru streets? If so, I will contact the other supermarket operators to see how it affected their business over time. We are the property owner and our own tenant. Please explain to the public the risk oflosing the supermarket to enhance the benefits for bikes and restaurant seating. I would encourage the City of Palo Alto to do a test with painted lines in the street as part of this process. When we began to operate our market here in 1990 we and subsequently purchased the property, we never dreamed the access for the grocery store would be limited in favor of bicycles, pedestrians, farmers markets and restaurants. This letter may be self serving, as our property has been selected for additional housing in Palo Alto, but for now, we do wish to continue operating our market. The survival of our business does not depend on only local residents. We need customers from much further away. 1 David Bennett Owner Mollie Stone's Markets On Ju117, 2012, at 3:12 PM, "Yazdy, Shahla" <Shahla.Yazdy@,CityofPaioAlto.org> wrote: Interested Resident, Merchant, and or Property Owner, The Director of Planning and Community Environment has asked that staff provide you with the attached copy of a list of Frequently Asked Questions (F AQs) and responses related to the California Avenue Streetscape Project in advance of next Monday's City Council meeting. The staff report and attachments for the meeting will be available on the City's website at the end of the day on Wednesday, July 19th, at: http://www.cityofpaloalto.orglgov/agendas/council.asp. Thank you. Shahla Yazdy Transportation Engineer City of Palo Alto 650.617.3151 <Cal Av FAQ's. July 2012_Final.pdf> CONFIDENTIALITY NOTICE: This email and any attachments are for the sole use of the intended recipient(s) and contain information that may be confidential and/or legally privileged. Any disclosure, copying, distribution or use of this communication by someone other than the intended recipient is prohibited. If you have received this email in error, please notify the sender by reply email and delete the message. Thank you. 2 Gonsalves. Ronna From: Pat Marriott < patmarriott@sbcglobal.net> Monday, July 16, 2012 1:58 PM Sent: \ 2 JUl I 6 P M t~ ~ 05 To: Council, City; Planning Commission Cc: Keene, James Subject: n ••• public that doesn't believe what we're saying ... " Council Members and Commissioners: From the Palo Alto Weekly re California Avenue: ... I think we're still left with the impact of the public that doesn't believe what we're saying, " Fineberg said, referring to the decision to shift the street to two lanes. http://oaloaltoonline.com!news!show story.php?id=26074 Thank you for recognizing the problem, Commissioner Fineberg. The public has good reason for disbelief: 1. Traffic study This is the club brought out to silence anyone concerned about lane reduction. Palo Alto's analysis concluded that the lane reduction would have a "less than significant" traffic impact. "In this case, the personal observations consist only of speculative lay opinions challenging a highly technical traffic engineering report, "Stump wrote. http://paloaltoonline.com/news/show story.php?id=24726 "So far, the city's traffic analysis showed that the lane reduction would not impact traffic levels, Rodriguez said .... "The traffic studies we've done do a good job demonstrating that the impacts from the lane reduction aren't there," he said. "There is no impact." http://oaloaltoonJine.com!news!show story.php?id=26074 And yet, if you look at the traffic consultant's report: www.cityofpaloalto.org/civica/filebank/blobdload.asp?Blob1D=25743 PDF 3, page iii "According to the City of Palo Alto, there are no pending projects or planned projects in the foreseeable future. Therefore, traffic volumes on California Avenue between EI Camino Real and Park Boulevard will remain unchanged with the current land uses." This is clearly not the case, since the city has long planned for development along the California Avenue transit-oriented corridor and it is the city's only PDA. This misinformation led to a dubious conclusion: ''The intersection LOS analyses show no significant impact from the proposed lane reduction along California Avenue. The roadway segment LOS analyses also show no significant impact from the proposed lane reduction along California Avenue." Even ifthere's a lane reduction trial, it will not be representative of area traffic in the next few years. 2. Grant funding delay "Rodriguez said last night that the city deferred the funding for a year voluntarily, so the city could work out the issues with the merchants." Daily Post 7-12-12 Yet Rodriguez's boss, Curtis Williams blamed merchant lawsuits for the delay: "The MTC won't move forward until we clear the lawsuit." ... it looks like the project will be pushed forward by at least six months to a year, Williams said .... Williams called the delay "disappointing," ... http://paloaltoonline.com/news/show story.php?id=24726 1 If Rodriguez wanted more time to work with merchants, why didn't he announce it before the grant was withheld-and before plaintiffs Shuchat, Ogawa and Davidson were vilified for supposedly causing the loss of grant money? 3. Who's in charge? California Avenue streetscaping has been bounced around for at least six years. Revisionist history and personal attacks abound. Who's ultimately responsible? On May 10, 2012, I emailed Tommy Fehrenbach of Economic Development: liThe California Ave. debate about lane reduction seems to revolve around the number of businesses for and against. I know that 55 businesses opposed to lane changes paid for an ad in the local paper several weeks ago. Can you tell me the total number of businesses in the CA Ave business district?" Fehrenbach forwarded my email to Curtis Williams, asking him to IIhave the admin staff send the list of businesses/ property owners" to me. Williams forwarded the request to Shalha Yazdy, the CA Ave. Project Manager, cc'ing Jaime Rodriguez: liDo we have a list of California Avenue businesses? Or the total number?" Yazdy emailed me: III unfortunately don't have a list of all businesses along California avenue. I can get you the mailing addresses of all the businesses along California Ave and surrounding streets, if this would help?" Yazdy did send me lithe list of California Avenue businesses that we use for our mailings," which is a spreadsheet titled "CA Ave business assessment district mailing list." The list does not include any business names and most of the owner/name fields simply say IIBusiness Owner." After much buck-passing, it appears that no one involved in this project even has a list of the stakeholders they're supposedly working with. 4. Communication: still problematic June 22nd article re Immersions nightclub building: "Local attorney William Ross said he was concerned about the lack of outreach to California Avenue property owners. "This is a very significant project," Ross told the board. "None of the property owners or businesses had any idea what it would be." http://www.paloaltoonline.com/weekly/story.php?story id=17085 On June 23rd I sent an email to Fehrenbach: IITommy, I fear that all the old problems that occurred with the tree cutting will be repeated. Ronna Devincenzi, as president of CAADA, claimed to speak for all business owners, which was not the case. Now there is a pseudo organization called BACA and Bob Hayes says he is president. You should find out how many merchants are actually part of BACA, because I bet it's a very small number. If you are assuming Hayes speaks for all merchants, you are mistaken. (I do not know Bob, but I do know merchants who specifically are NOT members of BACA.)" If you, council members and commissioners, were merchants on California Avenue would you believe City Hall? There are many smart people in the city government, but there has long been a culture of rarified air in City Hall. Accountability seems to be a scarce commodity, as demonstrated by the above examples. I commend Commissioner Fineberg for pointing out that this is II ... not a good position for the city to be in and I think we have to work to resolve that." It is rare for anyone on the inside to admit to problems. I hope she will be taken seriously and that you will all start this work soon. Pat Marriott Palo Alto property owner Frequent CA Ave. shopper 2 Gonsalves, Ronna From: Sent: To: Subject: Patti Regehr <peacefam@gmail.com> Wednesday, July 11, 2012 6:19 PM Council, City 12 JUL I 3 At1 8: I 3 California Ave.-please listen to Merchants and compromise Regarding California Street Plans: I really hope that you listen and work out a compromise with the Businesses on California Ave. Compromise and listening are somewhat harder to accomplish than it is to just following a plan. I urge you to realize that you have more in common with the Businesses on California Street and to have compassion to their needs. I have been coming to California Ave to shop because of the merchants, the joy I have by riding my bike there, and feeling like it is a community. Thank you, Patti Regehr 1 Gonsalves. Ronna From: Sent: To: Williams, Curtis Wednesday, July 11, 2012 6:44 PM Council, City tHY CLERt\'S OFFlfE J 2 JUL I 3 af1 8: J 3 Cc: Subject: Planning Commission; Keene, James; Emslie, Steve; Fehrenbach, Thomas; French, Amy RE: SVBJ: "Jay Paul Offers Palo Alto a Deal"" Council Members, I understand that the link to the article we sent may require a subscription to access. I've embedded the a rticle below if you couldn't view it. Sorry for the confusion. Curtis S. Williams I Director of Planning and Community Environment 250 Hamilton Avenue I Palo Alto, CA 94301 D: 650.329.2321 I E: Curtis.williams@cityofpaloalto.org PALO ALTO Please think oj the environment before printing this email-Thank you! From: Williams, Curtis Sent: Wednesday, July 11, 2012 1:59 PM To: Council, City Cc: Keene, James; Emslie, Steve; Fehrenbach, Thomas; French, Amy Subject: SVBJ: "Jay Paul Offers Palo Alto a Deal"" Mayor and Council Members, The City Manager asked that I forward to you a recent article in the Silicon Valley Business Journal regarding the Jay Paul Company's proposal for Palo Alto. Please let Mr. Keene or me know if you have questions. Thanks. Jay Paul offers Palo Alto a deal Premium content from Silicon Valley / San Jose Business Journal by Eli Segall, Reporter Date: Friday, June 22, 2012, 3:00am PDT Related: Commercial Real Estate, Palo Alto Enlarge Image 1 Courtesy rendering Expansion: Jay Paul Co. wants to build two four-story office buildings next to the building it owns at 395 Page Mill Road, where AOL is located. Eli Segall Reporter-Silicon Valley / San Jose Business Journal Email Bay Area developer Jay Paul Co. Jay Paul Co. Latest from The Business Journals Massive campus to hit Mountain ViewSobrato project is the latest sign of spec restart Sobrato project is latest sign of spec restart Follow this company has big plans for Palo Alto, but getting them completed will require more than just the usual green light from City Hall. The company has submitted plans to build a pair of four-story office buildings next to a complex it owns on Page Mill Road, and to build an apartment complex, a park and a parking garage off California Avenue nearby. If approved, these would be Jay Paul's first development projects in Palo Alto. However, the developer faces zoning restrictions on building the new office space on Page Mill. As a compromise, Jay Paul has proposed building part of Palo Alto's public-safety headquarters across the street. In the meantime, Jay Paul doesn't own the land it hopes to develop near California Avenue. The city owns those properties, and Jay Paul must wait to see if City Hall is willing to part with them. If the public-safety swap is approved, Jay Paul would bring an additional 311,000 square feet of office space to one of Silicon Valley's hottest real estate markets. City officials could also consolidate much of their emergency-service operations in a building that's expected to cost $45 million to $50 million to construct. The plans are far from finalized, though city officials say they're interested. City Council members briefly discussed Jay Paul's proposal to help build the public-safety building at a June 13 study session, and officials plan to take a deeper look during a Sept. 10 hearing. 2 As part of the plans, the San Francisco-based developer would more than double its square footage at the office- complex site, 395 Page Mill Road, to more than 530,000 square feet. The site currently has the maximum- allowed office square footage, but Jay Paul could build more ifthe City Council finds the company is also providing public benefits, said Palo Alto planning director Curtis Williams. Williams said under current discussions, Jay Paul would build the shell of the public-safety building and its adjacent parking garage. The company would finance about 60 percent -or $27 million to $30 million -of the total construction costs, Williams said. The city would pay for the rest and build its interior. In addition, the city might reimburse Jay Paul for some ofthe costs of building the garage. He described it as a "creative and innovative" proposal, saying it could prove easier for the city than selling bonds. He also said other companies have helped finance affordable housing projects and donated undeveloped land in Palo Alto, but none has offered to help pay for "a major facility like this." "It's very different," he said. Ray Paul, executive vice president of the firm named for his brother, said it wouldn't be the first time his company built a public facility as part of a private development. For instance, he said the firm built a Santa Clara Valley Transportation Authority Santa Clara Valley Transportation Authority Latest from The Business Journals Santa Clara Valley Transportation Authority throttles down rapid bus plansLocal politics keep transit ideas in limboVTA awards Mission/Warren freight job to RGW Follow this company light-rail station near its seven-building Moffett Towers complex in Sunnyvale. Paul said they've never built a project in Palo Alto, and the company owns only one building in that city, the one on Page Mill. By California Avenue, the firm wants to build a parking garage with 6,600 square feet of retail space, a park and a 116-unit apartment complex. He said the company would have to buy some ofthat land from the city, though Jay Paul could also function as a contractor of sorts for some of it. According to Paul, city officials haven't said whether they want to sell him the properties. "We'll follow the city process if they're interested," he said. Tight market Jay Paul purchased the Page Mill building - a 3-story, 219,000-square-foot structure -in 2006 for a reported $98.5 million. Its notable tenant, AOL Inc., has its West Coast headquarters there. David Conklin, managing broker with Renault & Handley in Mountain View, said there aren't many places to build "large blocks" of Class A offices on the peninsula, especially in Palo Alto. But the city's leasing market is strong, with numerous high-tech tenants that in many cases are gobbling up more space, and Conklin pointed out the Page Mill property is a few blocks from a Caltrain station and other California Avenue amenities. "I'd imagine there would be quite a bid of demand for additional space," he said. Palo Alto's current police headquarters, located downtown on Forest Avenue at the City Hall site, has been criticized as too small and structurally unsafe. The new public safety facility would include police headquarters as well as fire department administration, 9-1-1 dispatch and the city's Emergency Operations Center, said Dennis Bums, Palo Alto's police chief and interim fire chief. The building is expected to be 45,000-square-feet In SIze. 3 He said Jay Paul's proposal still needs to be "flushed out," though at this point it's "more than conceptual" and could benefit the city and the developer. "This one seems to have some legs and potential," he said. Eli Segall covers finance, law, sports business and economic development at the Business Journal. His phone number is 408.299.1829. 4 Gonsalves. Ronna Ci TY CLERK'S OFFICE From: michael ekwall <michael@labodeguita.com> Sent: Wednesday, July 11, 2012 2:00 PM 12 JUL I 3 A~" 8: I 4 To: Council, City Subject: cal ave Attachments: July 11 Planning Meeting.docx; ATTOOOO1.htm CALIFORNIA AVENUE ... WHAT'S IN THE WORKS Small Improvements Can Make the California Avenue Business District Even More Successful and Vibrant. As businesses in the California Avenue Business District, we are eager for the long delayed and much needed improvements to California Avenue. Many of the improvements would make the area more attractive and improve safety for pedestrians, cyclists and automobiles. We have encouraged the City to provide better parking for cars and bicycles, repaving and restriping the streets, 1 and creating raised and brightly marked crosswalks. We are also in favor of thoughtful and sustainable planting, better lighting, and more recycling/rubbish stations. The businesses represented here have all raised serious concerns about the short-and long-term impact if the lanes on California A venue are reduced from four to two. The current lane reduction plan has bikes sharing the same one lane with cars, emergency vehicles and delivery trucks. Many of our customers arrive by car, and we believe that traffic backups with two lanes would be inconvenient, potentially dangerous, and detrimental to business. Also, this would likely have an unintended congestion impact on our surrounding neighborhoods. The California Avenue Business District is already successful due to its unique character and the longevity of its local small businesses. We hope that the City continues with safety and beautification efforts for the District, but leaves the existing lane structure intact. We truly want what is best for everyone: for businesses, for the people who live and work here, and for those who come visit us. PAID FOR BY BUSINESSES CONCERNED WITH THE FUTURE OF CALIFORNIA AVENUE. Accent Arts (Since 1970) Anatolian Kitchen (Since 2010) Antonio's Nut House (Since 1972) 2 Avalon Art & Yoga Center (Since 2002) Baume Restaurant (Since 2010) Beauty Spa by Ereeda (Since 1992) Birch Street-Bistro Elan (Since 1995) Brite n' Clean (Since 1996) Cafe Brioche (Since 1995) California Ave. Norge Village Cleaners (Since 1961) California Paint (Since 1946) Campus Barber Shop (Since 1999) Cho's Dim Sum (Since 1979) Cigar House (Since 2010) Country Sun Natural Foods (Since 1971) Cut Color Style Pro Salon (Since 2011) Demetra Paras Therapy (Since 2005) DiPietro Todd Salon (Since 1998) European Cobblery (Since 1942) Farmer's Insurance (Since 1967) Hairshaper's Club (Since 2010) Heshmat Pain Management (Since 2006) Ingrid's Suntanning (Since 1985) Izzy's Bagels (Since 1996) Jinsho Japanese (Since 2007) Keeble & Shu chat (Since 1965) La Bodeguita del Medio (Since 1997) La Jolie Nail Spa (Since 2007) 3 Law Office of Peter N. Brewer (Since 1995) Leaf & Petal (Since 1978) LeHot Properties (Since 1979) Lotus Thai Bistro (Since 2008) Marty Klein, Ph.D., Licensed Marriage & Family Therapist (Since 1987) Massage Therapy Center (Since 1981) Maximart Pharmacy (Since 1972) Meffert Investment LLC (Since 1988) Mollie Stone's (Since 1990) Morton CPA (Since 1980) No Knew Books (Since 1988) Office of Dr. Kenneth Seeman (Since 1970) Office ofM. Goldeen (Since 1965) Palo Alto Eyeworks (Since 1998) Palo Alto Baking Company (Since 1982) Palo Alto Sol Restaurant (Since 1992) Ramona's Too Pizza (Since 1976) Space Age Publishing Company (Since 1977) Spalti Restaurant (Since 1996) Stanford Mortgage (Since 1993) Szechzuan Cafe (Since 2008) Taqueria Azteca (Since 1986) The Industry Hair Artists (Since 2008) Uzumaki (Since 2008) Yin, Vino, Wine (Since 1985) 4 Zen Garden Nail Salon (Since 2010) Zombie Runner (Since 2008) 5 July 11, 2012 City Council and Planning Committee, We continue to be in support of the long overdue repaving, safety upgrades, increased parking and aesthetic improvements to the California Avenue Business District. However, along with the majority of merchants in the area, we are strongly opposed to the lane reduction. In addition, we feel as though these long overdue upgrades are being postponed because of the opposition to the lane reduction plan. We now have an additional concern regarding the increase in high-density housing that has already been approved in our district. Any increase in residents and businesses will exacerbate our parking problems and potentially disrupt the existing businesses in the district that are largely dependent on automobiles and the availability of parking. There is no logic in creating a higher density residential community within the district while at the same time, reducing access to the area. The fact is that Palo Alto is a suburban neighborhood that is served by many forms of transportation, but generally automobiles provide the majority of visits to the area. While we don't disagree out of hand the possibility of increasing housing density; that, in conjunction with more residents, agues against reducing access to this area via {(lane reduction". *** Did the citizens of Palo Alto vote to create a PTOD in the area? *** If the city is so confident regarding this path of development, perhaps a referendum on the November ballot regarding both the scale and comprehensive details surrounding the evolution of California Avenue should be addressed in a comprehensive manner-let the citizens of the City of Palo Alto decide. The City Council continues to rely on the misconception that CAADA, and now BACA speaks on behalf of the merchants in the area. CAADA (and now BACA) has not represented the neighborhood merchants in many years-just ask the merchants. Although we are optimistic for some sort of merchants' association, our district is currently unrepresented. If you ask the 55 businesses who have gone on the record with the ((Cal Ave Works" statement, many do not believe they are represented by BACA. At the March 22, 2012 meeting, Curtis Williams promised merchants a meeting to discuss options OTHER THAN a lane reduction. No one to my knowledge from the city has conducted any outreach that is open to all merchants/businesses. Many merchants were in favor of a City Council member being present at all future meetings to insure the facts, opinions and frustrations of the merchants is accurately represented to those making the final decisions. It is as though the overwhelming disapproval of the lane reduction has been misrepresented to the Council. This seems to present a continued disconnect between planning and city council. In summary, from the beginning of public discussion, most merchants have been vocally against the lane reduction. At the original merchant outreach meetings in the fall of 2010, only 2 merchants expressed any support for the lane reduction. The majority of those in attendance and those unable to attend, supported the much needed an overdue upgrades but were AGAINST the lane reduction. We are concerned that initially, the city council was not provided with an accurate description of the merchant feedback or chose to ignore it in favor of (a bike group and other outside interests that do not work here, pay taxes here, et~ .... ). Here are a few questions that have yet to be answered: Whatever happened to the trial period of lane reduction? What happened to the follow up meeting with ALL merchants that was promised in March 2012? Who is the business development manager? S/he has not been in touch with anyone that is opposed to the lane reduction (to our knowledge). We generated a comprehensive email contact list of businesses and merchants in the area to assist the city with their communications. There is no acceptable for us not to be updated. Has the list been added to the city contacts re: Cal Ave issues? Often we are not receiving responses? The attitude of the city is slightly ironic. It wasn't too long ago that Palo Alto wholeheartedly supported the idea of high-speed rail and the possibility of a terminal in town. Once the true nature of the plans were discovered, the City did an abrupt about face and now is involved in legal actions against high speed rail...We feel the same way about California Avenue. Again, we ask you to reconsider .... put yourselves in our shoes and do what is right for our city and our district...do not be the high-speed rail commission! California Avenue is a successful and charming business district brings a substantial amount of revenue to the city through both property and sales taxes. Improvements to our district are being delayed by this lane controversy. Please make all of the necessary improvements (repaving, recycling, safer lighting ... and then discuss the NEED for increased parking and access) ... let us move on ... If you are looking for a consensus about this issue from the businesses, look to the ad we had to place so you could "officially" hear where the overwhelming majority of merchants stand. Michael Ekwall La Bodeguita del Medio 463 California Avenue Palo Alto, CA 94306 T 650.326.7762 x 11 F 650.323.2822 www.labodeguita.com Page 1 of 1 file:11 IC:/U sers/rgonsall AppDataiLocallMicrosoft/Windows/Temporary%20Internet%20Fil... 7/12/2012 Gonsalves. Ronna From: Sent: To: Cc: Subject: Attachments: Hello, f":'1'( m r't\LQ i\U(§!X'I'~ michael ekwall <michael@labodeguit'\~c:p'rf1:CLUUrS OfFICE Wednesday, July 11, 2012 2:11 PM Planning Commission , 2 JUL '3 Mi 8: \ 4 Council. City California Avenue July 11 Planning Meeting.docx; A TTOOOO1.htm; CaIAve-Ad-Post_MS.pdf; A TT00002.htm; CaIAve-Ad-Post_MS.eps; ATT00003.htm My letter was bounced ... please accept resubmission. 1 July 11, 2012 City Council and Planning Committee, We continue to be in support of the long overdue repaving, safety upgrades, increased parking and aesthetic improvements to the California Avenue Business District. However, along with the majority of merchants in the area, we are strongly opposed to the lane reduction. In addition, we feel as though these long overdue upgrades are being postponed because of the opposition to the lane reduction plan. We now have an additional concern regarding the increase in high-density housing that has already been approved in our district. Any increase in residents and businesses will exacerbate our parking problems and potentially disrupt the existing businesses in the district that are largely dependent on automobiles and the availability of parking. There is no logic in creating a higher density residential community within the district while at the same time, reducing access to the area. The fact is that Palo Alto is a suburban neighborhood that is served by many forms of transportation, but generally automobiles provide the majority of visits to the area. While we don't disagree out of hand the possibility of increasing housing density; that, in conjunction with more residents, agues against reducing access to this area via ((lane reduction". *** Did the citizens of Palo Alto vote to create a PTOD in the area? *** If the city is so confident regarding this path of development, perhaps a referendum on the November ballot regarding both the scale and comprehensive details surrounding the evolution of California Avenue should be addressed in a comprehensive manner-let the citizens of the City of Palo Alto decide. The City Council continues to rely on the misconception that CAADA, and now BACA speaks on behalf of the merchants in the area. CAADA (and now BACA) has not represented the neighborhood merchants in many years-just ask the merchants. Although we are optimistic for some sort of merchants' association, our district is currently unrepresented. If you ask the 55 businesses who have gone on the record with the ((Cal Ave Works" statement, many do not believe they are represented by BACA. At the March 22, 2012 meeting, Curtis Williams promised merchants a meeting to discuss options OTHER THAN a lane reduction. No one to my knowledge from the city has conducted any outreach that is open to all merchants/businesses. Many merchants were in favor of a City Council member being present at all future meetings to insure the facts, opinions and frustrations of the merchants is accurately represented to those making the final decisions. It is as though the overwhelming disapproval of the lane reduction has been misrepresented to the Council. This seems to present a continued disconnect between planning and city council. In summary, from the beginning of public discussion, most merchants have been vocally against the lane reduction. At the original merchant outreach meetings in the fall of 2010, only 2 merchants expressed any support for the lane reduction. The majority of those in attendance and those unable to attend, supported the much needed an overdue upgrades but were AGAINST the lane reduction. We are concerned that initially, the city council was not provided with an accurate description of the merchant feedback orchose to ignore it in favor of (a bike group and other outside interests that do not work here, pay taxes here, etc .... ). Here are a few questions that have yet to be answered: Whatever happened to the trial period of lane reduction? What happened to the follow up meeting with ALL merchants that was promised in March 2012? Who is the business development manager? S/he has not been in touch with anyone that is opposed to the lane reduction (to our knowledge). We generated a comprehensive email contact list of businesses and merchants in the area to assist the city with their communications. There is no"acceptable for us not to be updated. Has the list been added to the city contacts re: Cal Ave issues? Often we are not receiving responses? The attitude of the city is slightly ironic. It wasn't too long ago that Palo Alto wholeheartedly supported the idea of high-speed rail and the possibility of a terminal in town. Once the true nature of the plans were t: ••• nail Improvements Can Make the 3lifornia Avenue Business District len More Successful and Vibrant. )usinesses in the California Avenu'e Business Districtt we are er for the long delayed and much needed improvements to fornia Avenue. Many of the improvements would make the ~ more attractive and improve safety for pedestrianst cyclists automobiles. We have encouraged the City to provide better <ing for cars and bicyclest repaving and restriping the streetst creating raised and brightly marked crosswalks. We are also Nor of thoughtful and sustainable plantingt better lightingt more recycling/rubbish stations. businesses represented here have all raised serious concerns 'Ut the short-and long-term impact if the lanes on California nue are reduced from four to two. The current lane reduction 1 has bikes sharing the same one lane with cars t emergency icles and delivery trucks. Many of our customers arrive by cart we believe that traffic backups with two lanes would be mvenientt potentially dangeroust and detrimental to business. )t this would likely have an unintended congestion impact on surrounding neighborhoods. PAID FOR BY BUSINESSES CONCERNED WITH THE F OF CALIFORNIA AVENUE. Accent Arts (Since 1970) Anatolian Kitchen (Since 2010) Antonio's Nut House (Since 1972) Avalon Art & Yoga Center (Since; Baume Restaurant (Since 2010) Beauty Spa by Ereeda (Since 1992; Birch Street -Bistro Elan (Since 19 Brite n' Clean (Since 1996) Cafe Brioche (Since 1995) California Ave. Norge Village Clea (Since 1961) California Paint (Since 1946) Campus Barber Shop (Since 1999) Cho's Dim Sum (Since 1979) Cigar House (Since 2010) Country Sun Natural Foods (Since Cut Color Style Pro Salon (Since 2C Demetra Paras Therapy (Since 200 DiPietro Todd Salon (Since 1998) European Cobblery (Since 1942) Farmer's Insurance (Since 1967) Hairshaper's Club (Since 2010) Heshmat Pain Management (Since Ingrid's Suntanning (Since 1985) Izzy's Bagels (Since 1996) Jinsho Japanese (Since 2007) Keeble & Shuchat (Since 1965) La Bodeguita del Medio (Since 19S La Jolie Nail Spa (Since 2007) Law Office of Peter N. Brewer (Sir Leaf & Petal (Since 1978) LeHot Properties (Since 1979) Lotus Thai Bistro (Since 2008) Marty Klein, Ph.D., Licensed Marri Family Therapist (Since 1987) Massage Therapy Center (Since 1 S Maximart Pharmacy (Since 1972) Meffert Investment LLC (Since 198 Mollie Stone's (Since 1990) Morton CPA (Since 1980) No Knew Books (Since 1988) Office of Dr. Kenneth Seeman (Sin Office of M. Goldeen (Since 1965) Palo Alto Eyeworks (Since 1998) Palo Alto Baking Company (Since . Palo Alto Sol Restaurant (Since 19( Ramona's Too Pizza (Since 1976) Space Age Publishing Company (S Thank you, Michael Ekwall Page 1 of 1 file:1 I le:1U sers/rgonsall AppData/LocallMicrosoft/Windows/Ternporary%20Intemet%20Fil... 7/1212012 1 Betten, Zariah Subject:FW: July 23 meeting about CA Ave. From: Pat Marriott [mailto:patmarriott@sbcglobal.net] Sent: Tuesday, July 17, 2012 5:56 PM To: Keene, James; Rodriguez, Jaime; Yazdy, Shahla; Fehrenbach, Thomas; Williams, Curtis Subject: July 23 meeting about CA Ave.   All:  Dave Price wrote an editorial on Monday, 7/16, that included this bit:        In addition to gathering traffic  data before and after the trial, we also need to quantify what “vitality”/“vibrancy” means  and what it costs. To do that, we must understand and quantify the current economic situation and set quantifiable  goals for the planned improvements. Otherwise, the city will spend $2.4 million (and growing) while possibly driving out  some existing businesses.     Wayne Martin posted the following at http://paloaltoonline.com/news/show_story.php?id=26011 .   Let’s pursue this issue of “revitalizing the business district”. On face value, this might seem like a worthwhile thing for a City to  want to do—providing that it knew what to do to achieve this sort of “revitalization”.   But how many City Council members have ever revitalized a business, much less a whole business district? If the answer is none— what makes any/all of their comments meaningful? Even with their endorsement, will any of them be responsible in any way if  the business climate on this short street segment does not wildly improve?  Pushing this point just a little, did anyone on the Council ask any meaningful questions, such as:  o) How does the City define “vibrant”, in terms of measurable economic activity?  o) How many people utilize this business district today?  o) How many people will utilize this business district after the project is completed.  o) How many business are in this business district today?  2 o) How many businesses does Staff believe will be drawn to the Business District because of this street reconfiguration?  o) How big is the current economic base, in terms of dollars?  o) How big will the economic base be, after the street configuration, in terms of dollars?  o) How much money does the City receive today from sales taxes in this district?  o) How much will the City received after the reconfiguration?  Wayne’s questions provide a good beginning for before and after measurements. I hope these will be addressed at the  July 23rd meeting.  Thank you,                  Pat Marriott  1 Betten, Zariah From:Yazdy, Shahla Sent:Wednesday, July 18, 2012 10:52 AM To:Betten, Zariah Subject:FW: From Mollie Stone's Market requesting a painted line test Cal Ave letter Shahla Yazdy Transportation Engineer City of Palo Alto 650.617.3151 From: David Bennett [mailto:dbmollie@gmail.com] Sent: Wednesday, July 18, 2012 6:15 AM To: Yazdy, Shahla Subject: From Mollie Stone's Market requesting a painted line test Hello Shahia, Do any of the other projects mentioned in the frequently asked questions have a supermarket that survived this lane reducing project at the end of a dead end street? Are all the other projects mentioned thru streets? If so, I will contact the other supermarket operators to see how it affected their business over time. We are the property owner and our own tenant. Please explain to the public the risk of losing the supermarket to enhance the benefits for bikes and restaurant seating. I would encourage the City of Palo Alto to do a test with painted lines in the street as part of this process. When we began to operate our market here in 1990 we and subsequently purchased the property, we never dreamed the access for the grocery store would be limited in favor of bicycles, pedestrians, farmers markets and restaurants. This letter may be self serving, as our property has been selected for additional housing in Palo Alto, but for now, we do wish to continue operating our market. The survival of our business does not depend on only local residents. We need customers from much further away. David Bennett Owner Mollie Stone's Markets On Jul 17, 2012, at 3:12 PM, "Yazdy, Shahla" <Shahla.Yazdy@CityofPaloAlto.org> wrote: Interested Resident, Merchant, and or Property Owner, The Director of Planning and Community Environment has asked that staff provide you with the attached copy of a list of Frequently Asked Questions (FAQs) and responses related to the California Avenue Streetscape Project in advance of next Monday’s City Council meeting. The staff report and attachments for the meeting will be available on the City’s website at the end of the day on Wednesday, July 19th, at: http://www.cityofpaloalto.org/gov/agendas/council.asp. 2 Thank you. Shahla Yazdy Transportation Engineer City of Palo Alto 650.617.3151 <Cal Av FAQ's. July 2012_Final.pdf> 1 Betten, Zariah From:Yazdy, Shahla Sent:Wednesday, July 18, 2012 10:52 AM To:Betten, Zariah Subject:FW: Reconfiguring California Avenue – Try Before We Buy Cal Ave Shahla Yazdy Transportation Engineer City of Palo Alto 650.617.3151 From: Robert Moss [mailto:bmoss33@att.net] Sent: Tuesday, July 17, 2012 5:00 PM To: Council, City Cc: Williams, Curtis; Yazdy, Shahla Subject: Reconfiguring California Avenue – Try Before We Buy Mayor Yeh and Councilmembers                                                        July 17, 2012 Reconfiguring California Avenue – Try Before We Buy The proposals to reconfigure California Avenue by widening sidewalks, improving landscaping and reducing  traffic lanes from four to two was recommended for approval by the Planning and Transportation Commission  with some clarifications requested. This project has been under consideration for almost three years and still  has some major issues that must be resolved before any permanent changes are made to California Avenue.  The biggest is whether the lane reduction will have any negative impacts on traffic, parking, or commercial  viability of businesses. The only way to really see the impact of lane reductions is to test it first and to delay  permanent changes until the test is complete. Improving and upgrading the California Avenue business district has been a topic of discussion for  years.  CAADA considered the situation more than four years ago and decided that the best approach was  widening sidewalks, adding landscaping and trees, allowing restaurants to expand seating onto the widened  sidewalks, and improving transit to and from the area. They took their proposals to city staff and  councilmembers resulting in a series of meetings of the PTC and Council to develop plans for improvements.  Many business and property owners became upset when they learned of these plans as they didn’t feel that  they had been consulted or that their concerns were being heard.  Nevertheless the CAADA proposals were  accepted as the desire of property owners and businesses along California Avenue and adopted by staff.  Getting the $1,175,200 grant from VTA for modifying California Avenue solidified the staff position that this  was a functional and desirable change to the street. In fact many business owners were not on board with the change. They felt left out of the discussions and  decision making by CAADA and staff.  Letters, full page ads in local papers, and comments at Planning  Commission and Council meetings by many business owners in the California Avenue area make it clear that  they feel ignored and that their very real concerns were arbitrarily dismissed. Planning commissioners  acknowledged this inadequate treatment of businesses when they recommended a trial of the lane reduction  before it is finalized. This is very reasonable and will somewhat address the concerns of the many people that  doubt reducing California Avenue from four to two lanes won’t have negative impacts.  2 Improving the appearance and landscaping of California Avenue is a relatively minor controversy.  Everyone  agrees that street improvements would be nice. The major issue is traffic impacts, and how much sidewalk  widening and modification is acceptable before negative traffic impacts occur. Staff raised legitimate concerns  that a trial of the lane reduction won’t be fully accurate since the sidewalk and landscape changes won’t be  included and can’t be evaluated.  That is correct, but not a major impediment to the traffic impact study.  A  trial that simulates widening sidewalks with temporary bollards or parking bumpers and restriping the street  to represent the proposed two‐lane configuration should allow traffic and business impacts to be  determined.  The wider sidewalk area could accommodate rented potted trees and plants to represent  upgraded landscaping.  Restaurants could be allowed to place tables outdoors in the wider sidewalks, and  location of loading zones could be verified as adequate or troublesome. Traffic impacts can be quantified by taking before and after traffic counts on California, Cambridge, Grant,  Sherman, Sheridan, Ash, Birch and Park. Measure travel times both ways along these streets, and report  accidents on those streets since 2005 and during the test.  If problems such as wrong loading area location,  increase in accidents in a specific area, or congestion at intersections are identified during the test  modifications can be made and the impact of the changes evaluated. The trial should last at least 6 months,  probably longer so that seasonal traffic variations are accounted for. Impacts on businesses can be estimated by asking participating businesses to compare income pre and post  trial.  A more quantitative evaluation would be sales tax revenues before and after during the same time  periods. While this won’t give data on service‐oriented businesses it will give valid data on retail store  impacts.   Unfortunately the trial won’t show the impacts of developments due to the designation of California Avenue  within ½ mile of the CalTrain station as our only Preferred Development Area, but those changes probably  won’t be significant until 2014 or later. However the baseline data on traffic flow and retail sales can be used  to evaluate the impacts of future developments in the California Avenue PDA when compared with current  conditions with four lanes for traffic and the two‐lane simulation before significant development occurs in the  area. Please adopt the recommendation of the Planning Commission and dozens of businesses in the California  Avenue area and approve a traffic study that includes simulation for widened sidewalks, loading zone  locations, and lane reduction from four to two lanes.  It should last at least six months, but a one‐year trial will  give data over the normal range of business and shopping activity. Yours sincerely, Bob Moss 4010 Orme St. 650‐493‐2178 City of Palo Alto (ID # 3001) City Council Staff Report Report Type: Action ItemsMeeting Date: 7/23/2012 July 23, 2012 Page 1 of 5 (ID # 3001) Summary Title: Proposed Revenue Increases and Expenditure Reductions for Animal Services Title: Public Hearing: Proposed Revenue Increases and Expenditure Reductions for Animal Services From: City Manager Lead Department: Police Recommendation Staff recommends that the Council review the proposed Animal Services revenue increases, expenditure reductions, and staffing allocations and approve the adoption of the municipal fee changes related to Animal Services. Background The City Council approved a $449,105 reduction to the net cost of Animal Services to the City as part of the FY 2013 budget. Staff sought feedback from a Stakeholder Group comprised of Palo Alto Animal Services (PAAS) shelter staff, Friends of the Palo Alto Animal Shelter, area humane societies, private veterinarians, and other interested individuals to discuss and determine how best to reduce the budget, increase revenues and/or engage in partnership while still providing the high level of service the community has experienced in past years. While the Stakeholder Group is still meeting, staff has developed a proposal with Stakeholder input to achieve the budget reduction with on-going, structural expenditure reductions, fee revenue increases (which are outlined in this CMR) and the one-time use of some donations. Table 1 outlines the financial impact of the proposed changes with both the timeline in FY2013 as well as a scenario showing the annualized impact. The revenue amounts shown below are the net impact of the proposed revenue increases. The gross revenue that will be added to the FY2013 budget will be $302,437 which includes the one-time donations, and the 5% technology fee and other fee increases already accounted for in the FY2013 Adopted Budget. Table 1: Financial Impact of Proposed Changes Revenue Increases Effective August 1 Annualized Scenario July 23, 2012 Page 2 of 5 (ID # 3001) Spay/Neuter Revenue Increase - Increase volume by 25%, booking 3,000 appointments annually - Increase Resident/Partner City Fees by average of 22% - Increase Non-Resident/Partner Fees by average of 50% $131,810 $143,793 Dog Licenses - Increase volume by 30% through partnering with local veterinarians - Increase fees to all owners by average of 23% $25,553 $27,876 Vaccination Revenue - Increase fees to all customers by 33%, except for rabies vaccination $8,931 $9,743 Adoptions - Increase fees to all customers by 25% $3,609 $3,938 One-Time Donations (new in FY 2013) - Santa Clara County $47,000 - Matties Fund $25,000 - Anonymous Donation for Volunteer Coordinator $35,000 $107,000 $0 Total Additional Revenue $276,903 $185,349 Expenditure Reductions Effective January 1 Annualized Scenario Eliminate 1.0 FTE Animal Control Officer ($45,635) ($91,270) Eliminate 1.0 FTE Supervisor Animal Services ($64,909) ($129,818) Eliminate 0.5 FTE Volunteer Coordinator (Saved for FY 13) N/A ($56,213) Eliminate 0.10 FTE Hourly Veterinarian, effective July 1st ($7,125) ($7,125) Total Expenditure Reductions ($117,669) ($284,426) Draw from Donations Received in Prior Fiscal Year $54,533 - Total Placeholder Impact ($449,105) ($469,775) Discussion Staff’s proposal is comprised of approximately 40% revenue increases and 60% expenditure reductions to meet the $449,105 FY 2013 net cost reduction target. This plan represents the best option to maintain acceptable levels of service for the community and our partner cities while significantly reducing Animal Services’ cost to the General Fund in FY 2013. Revenue Increases Proposed fee increases, which are included as attachment 1, are integral to the success of this plan and are reasonably competitive given the significantly higher costs faced for many of these services in the private marketplace and lack of suitable public competition for the same services. On June 14, 2012, the stakeholder group held its first meeting and there was consensus that Animal Services fees needed to be raised, although specific proposals were not discussed. Staff met separately with members of the stakeholder group who expressed a particular interest in fees and discussed our current fee structure and potential opportunities and challenges related to increasing or changing fees. Spay and Neuter Fees July 23, 2012 Page 3 of 5 (ID # 3001) The most integral component of this plan is increases to spay/neuter fees and anticipated additional surgery volume. Under this plan, Animal Services would continue to provide spay/neuter and vaccination services to individuals not residing in Palo Alto or our partner cities, who account for approximately 75% of spay/neuter volume and 60% vaccination volume (other services, such as surrenders or animal control activities, are not offered to individuals outside of Palo Alto or its partner cities). These individuals from outside of Palo Alto or our partner cities who receive service through the spay and neuter clinic would see the most dramatic fee increases, but the costs for these increases are still substantially lower than private veterinarian rates and competitive with other local low-cost providers. Under this plan, the average costs of all spay and neuter surgeries at the shelter would be $95 for residents and $125 for non-residents. In addition, members of the revenue subcommittee of the Stakeholder Group recommend that those individuals using vouchers at the PAAS provided by the Palo Alto Humane Society (PAHS) be given the resident fee. Staff concurs with this partnering recommendation as proposed by PAHS. Despite the recommended higher fees, Staff does not anticipate negative impacts on the volume of surgeries performed because of Palo Alto’s status as one of the few public low-cost spay and neuter clinics and wider service availability. In addition, most of the surgeries performed at the shelter are for smaller animals, which see the smallest increase in absolute dollar terms. Maintaining a full-time veterinary staff and continuing to provide these services to individuals outside of our service area is the most cost-effective option. Due to legal mandates to provide veterinary care to injured stray animals and sterilization services for adopted animals, the City would be required to provide veterinary services regardless of whether or not the City employed a veterinarian, likely through a contract veterinarian and agreements with local animal hospitals. The City would likely have to pay a minimum of $95,000 a year to provide this minimal level of service and could not offer spay/neuter or vaccination services to the public, which would result in the loss of more than $200,000 annually in revenue. In addition, preliminary cost recovery information shows that the City currently provides a 39% subsidy for providing spay and neuter services. Staff’s proposal reduces this subsidy substantially and mitigates the burden of increased fees to residents and partner cities by raising fees for non-residents at a greater rate than residents. Not only does this lessen the impact of fee increases on residents, it also assists in sustaining the program as a whole since not providing these services to non-residents would necessitate much higher resident fees to achieve similar revenue targets and would likely lead to fewer spay/neuter surgeries performed. Staff has also included an estimated 25% volume increase in the number of spay and neuters performed. This is a conservative estimate to restore volume numbers to those similar to the past three years; as well appointment availability will be expanded to ensure the target number of annual surgeries is reached. Other Services Most vaccination fees will increase by $5, except rabies vaccines which will see no increase, and dog licenses will be increased by $2-8 depending on the type and duration of license. In addition, dog license revenue should continue to increase in part due to increased compliance activities, such as working with area veterinarians to obtain rabies vaccination information in conformance with California Health and Safety codes. The annualized net impact of all revenue increases is approximately $185,000. Staff does July 23, 2012 Page 4 of 5 (ID # 3001) not anticipate volume reductions in vaccinations or in pet licensing due to the small dollar amount of the increases. While significant volume reductions due to the fee increases are not anticipated, the precise impact on volume is unknown and will have to be evaluated throughout the fiscal year. Staff recommends reviewing revenue projections in November 2012 and supplementing any projected shortfalls with additional draws from the Animal Services Donation Fund. Expenditure Reductions The plan also calls for the structural elimination of 2.6 Full-Time Equivalents (FTEs) in Animal Services, most effective on January 1, 2013, consisting of 1.0 FTE Animal Control Officer, 1.0 FTE Animal Services Supervisor, 0.50 FTE Volunteer Coordinator, and 0.10 FTE Management Specialists (Hourly Veterinarians). The annualized impact of these expenditure reductions is $284,426. The reductions of management staffing through the elimination of the Animal Services Supervisor position would require that longer-term planning such as disaster preparedness, training, participation in numerous countywide programs, and mutual aid be prioritized against other day-to-day responsibilities. The Volunteer Coordinator position would be saved for FY 2013 due to an anonymous donation, but would be eliminated in FY 2014. At that point, the shelter’s volunteer program would be maintained by absorbing the duties of the Volunteer Coordinator into the responsibilities of the remaining staff. In addition, PAAS may consider alternative options for these responsibilities in the future, such as having a volunteer or group of volunteers take on the responsibilities of the volunteer program The elimination of one Animal Control Officer (ACO) would result in field coverage going from two officers to one officer 85% of the time. There would likely be a slight negative impact on response times from this reduction in some instances. For example, there would be no back up officer in cases of simultaneous calls for service, calls for service with multiple animals, or field coverage in times of illness, vacation or family leave. With only one field officer on duty, field safety would require back-up response from other public safety officers. With the loss of Mountain View’s calls for service, average PAAS daily calls for service are expected to decrease from approximately 10 per day to approximately 7 or 8 per day between the months of November to April and decrease from approximately 13 per day to 10 per day between the months of May and October. This reduced level of calls will offset some of the impact of the position eliminations, but could still result in days where lower priority calls, such as deceased animal pickups, experience a delayed response and could be held over for the following shift during particularly busy days. The mid-year period of May through October can consistently yield very high call volumes which will significantly stress field service operations. For example, in 2011, PAAS had more than 25 days where 14 or more calls for service were received and several days of more than 20 calls for service, not including Mountain View calls for service. In these instances, there is a very high likelihood that low priority calls would stack-up and be held over into the following day and overtime would be needed to clear higher priority calls each shift. Calls requiring a police officer would be prioritized against other calls for service, which would also impact response times and result in additional overtime. July 23, 2012 Page 5 of 5 (ID # 3001) Attachments: 2013 Animal Services Muni Fee Increases (PDF) Prepared By: Ian Hagerman, Sr. Performance Auditor Department Head: Dennis Burns, Police Chief City Manager Approval: ____________________________________ James Keene, City Manager Dogs and cats Rabbits Parakeets, chickens, pigeons, doves Cockatiels Rats, hamsters, guinea pigs, mice Exotics Adoption Hold Fee Cats Dogs Large animals (horse, cow, pig) Rabbits Small animals (reptiles, birds including poultry) Dogs, cats, rabbits (per animal) – up to 20 lbs. Each additional animal Dogs up to 75 lbs. Dogs 76 lbs. And over Large animals up to 150 pounds (no animal accepted overweight) Small animals and birds Request for transport of owned dead animals up to 100 pounds Birds, small animals Domestic animals to 20 lbs. Dogs 21 to 75 lbs. Dogs 76 pounds and overCremation Service of Owned Animals includes euthanasia, if applicable Private Communal Private Communal Private Communal 0-24 pounds $130.00 $90.00 $141.00 $98.00 $140.00 $100.00 25-49 pounds $145.00 $105.00 $157.00 $114.00 $160.00 $115.00 50-75 pounds $160.00 $120.00 $173.00 $130.00 $175.00 $130.00 76-99 pounds $175.00 $135.00 $189.00 $146.00 $190.00 $150.00 100-150 pounds $200.00 $150.00 $216.00 $162.00 $220.00 $165.00 Custom engraved plaque additional fee Impoundment Fees Cat First offense Second offense Third and subsequent offense Dog – licensed First offense Second offense Third offense Fourth offense Fifth - Tenth offense Eleventh or subsequent offense $40.00 $75.00 $110.00 $130.00 $30.00 $45.00 $60.00 $30.00 $45.00 $60.00 $110.00 $27.00 $43.00 $59.00 $38.00 $76.00 $108.00 $130.00 $11.00 $43.00 $16.00 $27.00 $43.00 $59.00 $108.00 $135.00 $162.00 $100.00 Actual cost, including transportation expense, will be charged to house the animal at the $5.00 $3.00 $38.00 $9.00 $49.00 $108.00 $43.00 $5.00 $27.00 $40.00 $150.00 $100.00 $120.00 $35.00 $70.00 $40.00 $55.00 Disposal of Dead Owned Animals $125.00 $10.00 $25.00 $15.00 $20.00 Euthanasia Fees (includes animal disposal) $45.00 $55.00 $25.00 $135.00 $40.00 $5.00 $5.00 $40.00 $43.00 $25.00 $25.00 $25.00 $27.00 $5.00 $5.00 Fee established by Animal Superintendent Fee established by Animal Superintendent $27.00 $5.00 Fee established by Animal Superintendent $16.00 $16.00 $125.00 POLICE DEPARTMENT Animal Services 2012 FEE 2013 PROPOSED FEE Adoptions: include a $10.00 coupon off a future S/N surgery valid for 1 year from issue $100.00 2013 ADOPTED FEES In conjuction with advertised national and local animal welfare events, the Superintendent may lower the adoption fees to support the adoption of shelter animals. $20.00 Actual cost, including transportation expense, will be charged to house the animal at the Actual cost, including transportation expense, will be charged to house the animal at the Board Fees To be paid in addition to impound fee for all stray and impounded animals (including owner-surrendered animals for rabies quarantine). $15.00 $20.00 $15.00 Fees are per calendar day, including day received. $5.00 $5.00 $3.00 $3.00 $35.00 $40.00 $100.00 $110.00 $59.00 $108.00 $45.00 $8.00 $9.00 $50.00 $55.00 $60.00 $10.00 $165.00 City of Palo Alto FY 2012 Municipal Fee Schedule 20-1 POLICE DEPARTMENT Animal Services 2012 FEE 2013 PROPOSED FEE2013 ADOPTED FEES Dog – unlicensed First offense Second offense Third offense Fourth offense Fifth - Tenth offense Eleventh or subsequent offense Other Animals Large animal (horse, cow, pig, goat) Small animal (bird, rabbit, reptile) Special Impoundment Fees Dog – licensed Dog – unlicensed State Mandated Fees First offense Second offense Third and subsequent offense Licenses and Pet Identification License for a period of: Per Dog If Spayed or Neutered Per Dog If Spayed or Neutered Per Dog If Spayed or Neutered 12 months $30.00 $15.00 $32.00 $16.00 $40.00 $20.00 24 months $50.00 $25.00 $54.00 $27.00 $60.00 $30.00 36 months $70.00 $35.00 $76.00 $38.00 $80.00 $40.00 Late Fee - Thirty (30) days after expiration, or after 10 days in the case of new residents. Late Fee also applies for licenses which are purchased in response to a citation or animal impound. $20.00 $30.00 $22.00 $32.00 $30.00 $30.00 Cat ID Cat ID-altered animal Replacement license tag (dogs) Miscellaneous Sales, Pet Supplies Animal Control Officer/Veterinary Technician City Veterinarian Quarantine Home Inspection Fee IM & SQ IV IV solu-delta cortef 100 mg IV solu-delta cortef 500 mg IV IM Gas Local SQ (cat) SQ (dog) IV catheter plus insertion IV fluids IVAC set up and use Minimum surgery and preparation Surgical time/Vet treatment time $38.00 $100.00 $125.00 $170.00 $200.00 $100.00 $25.00 $50.00 $70.00 $95.00 $135.00 $49.00 $70.00 $92.00 $135.00 $162.00 $189.00 $76.00 $32.00 $38.00 $49.00 $54.00 $24.00/liter $16.00/day $38.00 $54.00 $11.00/5 years $5.00/5 years $5.00 $56.00/hour $108.00/hr $27.00 $38.00 $43.00 $54.00 $35.00 $100.00 Unaltered, impounded stray dogs and cats. Includes any animal impounded or found running at large in Foothills Park, Byxbee Park and Baylands preserve. $50.00 $45.00 $65.00 $85.00 $81.00 $22.00 $76.00 $114.00 $125.00 $150.00 $22.00/liter $15.00/day $20.00 $10.00/5 years $35.00 $40.00 $16.00/day $30.00 $32.00 $35.00 $45.00 $38.00 $49.00 $54.00 $24.00/liter $50.00 $54.00 $81.00 for first 30 minutes, $1.50 per minute thereafter $43.00 $50.00 $54.00 $70.00 $76.00 $75.00 for first 30 minutes, $1.50 per minute thereafter $50.00 $81.00 for first 30 minutes, $1.50 per minute thereafter $56.00/hour $100.00/hr $108.00/hr $5.00/5 years $5.00/5 years $5.00 $5.00 $52.00/hour The following charges are applicable to sick and/or injured stray animals and are payable at the time of redemption. Included in the fees are the Veterinarian and Technician’s time as well as the cost of materials. At cost outside veterinary treatment will be the responsibility of the animal owner. $25.00 $27.00 $35.00 $38.00 $40.00 $38.00 $108.00 per hour$100.00 per hour $108.00 per hour Fee set by the Superintendent, Animal Services Division. Veterinary Services Miscellaneous Service Fees Injections Sedation-Anesthesia Fluid Therapy $175.00 $75.00 $50.00 $100.00 $100.00 Surgery (not including anesthesia) $35.00 $50.00 $10.00/5 years $70.00 $35.00 $35.00 $105.00 City of Palo Alto FY 2012 Municipal Fee Schedule 20-2 POLICE DEPARTMENT Animal Services 2012 FEE 2013 PROPOSED FEE2013 ADOPTED FEES Oral or Topical treatment Flushing drains Force Feeding Flourescein Eye Stain Intensive Care (additional) Incubator/ICU cage with O2 Medical Grooming Medication - Rx fee Special Prescription Diets Wormings - Interceptor Bandage paw Robert Jones Splint Cite CPV test Azostick or Dextrostick Heartworm test DTM Fecal FeLV/FIV test Multistix urinalysis PCV PCV/TP Skin scraping Reference Lab (CVD) Kennel, birds, or animals Breeding permit - cat, dog, or bird Dangerous animal including microchip Livery stable, boarding stable Livestock Pet Shop/Groomer Boarding Pet Show or Fun Match Pony ride, pony ring Riding academy Traveling menagerie or zoo Spay and Neuter Clinic Fees Resident Non-Resident Resident Non-Resident Resident Non-Resident Cat Neuter (male)**$65.00 $90.00 Cat Spay (female)**$95.00 $130.00 0-30 pounds $100.00 $135.00 31-50 pounds $115.00 $155.00 51-75 pounds $135.00 $175.00 76-99 pounds $155.00 $210.00 100 pounds and over $250.00 $325.00 0 - 30 pounds $120.00 $160.00 31 - 50 pounds $135.00 $175.00 51 - 75 pounds $155.00 $210.00 76-99 pounds $190.00 $250.00 100 pounds and over $270.00 $345.00 Rabbit Neuter $75.00 $95.00 Rabbit Spay (female)$100.00 $120.00 Rat Spay (female)$100.00 $120.00 Rats, Guinea Pigs (male)$75.00 $95.00 Clinic Board Fee per day – all animals (Special arrangements required) $20.00 $20.00 Late fee for Spay and Neuter Pickup $25.00 $25.00 48 hour cancellation fee (non-refundable)$25.00 $25.00 No show fee (non-refundable)$50.00 $50.00 $165.00 $165.00 $165.00 $165.00 $100.00 $325.00 $165.00 $60.00 $165.00 $165.00 $60.00 $162.00 $162.00 $54.00 $324.00 $162.00 $54.00 $162.00 $0.00 $0.00 $211.00 $59.00 $87.00 $92.00 $103.00 $119.00 $141.00 $92.00 $87.00 $59.00 $16.00 $16.00 $27.00 $22.00 200% of our cost $108.00 $119.00 $141.00 $168.00 $3.00 each time $27.00 $32.00 $54.00 per hour $81.00 per day $81.00 per hour $11.00 - $65.00 $5.00 per day $27.00 Bandages/Splints $5.00 each time $16.00 $3.00 each time $81.00 per day $5.00 each time $15.00 $16.00 $5.00 each time $50.00 per hour $54.00 per hour $75.00 per day $3.00 each time $40.00/animal $20.00 $20.00 $43.00/animal $22.00 $22.00 $80.00 Dog Neuter (male)** $195.00 $100.00 Dog Spay (female)** $110.00 $130.00 $95.00 $233.00 $70.00 $55.00 $80.00 $85.00 $300.00 $150.00 $50.00 $150.00 $50.00 $150.00 $150.00 $150.00 $22.00 200% of our cost $150.00 $50.00 200% of our cost $20.00 $54.00 $162.00 $162.00 $27.00 $15.00 $15.00 $25.00 $16.00 $16.00 $16.00 $27.00 $16.00 $35.00 $30.00 $25.00 $16.00 $38.00 $32.00 $5.00 per day $75.00-95.00 $38.00 $32.00 $38.00 $65.00 $25.00-40.00 $26.00-43.00 $27.00 $25.00 $75.00 per hour $81.00 per hour $10.00 - $60.00 $11.00 - $65.00 $30.00 $32.00 $26.00-43.00 $70.00 $77.00-102.00 $70.00 $77.00-102.00 $35.00 $15.00 $38.00 $5.00 per day $110.00 $130.00 $215.00 $65.00 $155.00 $15.00 $85.00 $55.00 $3.00 each time $3.00 each time$3.00 each time Common Procedures (not including anesthesia) Labwork Permits (annual fee or per event) City of Palo Alto FY 2012 Municipal Fee Schedule 20-3 POLICE DEPARTMENT Animal Services 2012 FEE 2013 PROPOSED FEE2013 ADOPTED FEES Nail Clip Droncit injection (tapeworms) Dewclaw removal (per dewclaw) Deciduous teeth extraction (per tooth) Wound care Antibiotic injection Rx for clinic Special Rx Previously spayed/neutered Feral rescue own vaccine Feral rescue own Felv/FIV test Umbilical hernia Cryptorchid plus neuter fee Pre-surgical labwork Obesity fee plus spay fee Pregnancy fee plus spay fee Ear mite treatment Heartworm Leukemia/FIV Combo test Bordetella FVRCP DA2PP Leukemia/vaccine Rabies Rabies (Actual Cost Clinic) Puppy Package Included is DA2PP vaccine at 8,11 and 15 weeks of age; rabies vaccine at 16 weeks of age, and a microchip Kitten Package Included is FVRCP vaccine at 8,11 and 15 weeks; rabies vaccine at 16 weeks and a microchip Microchip Microchip rescue group Deposit per trap (2 trap maximum) Minimum rent for first 3-day usage Additional per day rent (calendar day) max 14 daysTraining/Behavior Classes Pre-registration (required) Behavior Consultation $40.00 $20.00 $10.00 $6.00 $100.00 $100.00 $20.00 $20.00 $20.00 $20.00 $35.00 $5.00 $15.00 $75.00/hour plus $81.00/hour plus $25.00-$100.00 $27.00-$108.00 $10.00 $6.00 $81.00 $81.00 $16.00 $16.00 $16.00 $16.00 $108.00 $16.00 $6.00 $35.00 $75.00 $38.00 $32.00 with surgery only $32.00 with surgery only $16.00-54.00 $16.00 $16.00-54.00 cost + $16.00 service fee Testing $38.00 - $70.00 $5.00 $16.00-135.00 cost + $26.00 service fee $22.00-43.00 $16.00 - $54.00 $26.00 Trap Rental $10.00 $15.00 $32.00 $22.00 $16.00-54.00 $15.00 $15.00 - $50.00 $20.00 - $75.00 $25.00 $30.00 $30.00 with surgery only $35.00 with surgery only $30.00 with surgery only $35.00 with surgery only $100.00 $100.00 cost + $26.00 service fee $20.00-40.00 $22.00-43.00 $5.00 $5.00 $16.00 $20.00 Services performed by the City Veterinarian in conjunction with spay and neuter surgeries $5.00 $5.00 $30.00 $35.00-50.00 $20.00 $25.00 cost + $25.00 service fee $15.00 $16.00 $5.00 ** A $5.00 discount will be applied to all dogs and cats five months or younger. * The animal shelter staff reserves the right to refuse service to any animal they deem unsuitable for reasons of safety, housing, etc. $75.00 $35.00 - $65.00 $16.00 $15.00-50.00 $15.00 $15.00-50.00 cost + $15.00 service fee Vaccinations $15.00 $16.00-54.00 cost + $16.00 service fee $35.00-75.00 $15.00-125.00 $25.00-150.00 $15.00 $15.00 City of Palo Alto FY 2012 Municipal Fee Schedule 20-4