HomeMy WebLinkAbout2014-06-16 City Council Agenda PacketCITY OF PALO ALTO
CITY COUNCIL Special Meeting
Council Chambers
June 16, 2014
5:00 PM
Agenda posted according to PAMC Section 2.04.070. Supporting materials are available in the
Council Chambers on the Thursday preceding the meeting.
1 June 16, 2014
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PUBLIC COMMENT
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TIME ESTIMATES
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in progress. The Council reserves the right to use more or less time on any item, to change the order of items and/or to continue items to another meeting. Particular items may be heard before or after the time estimated on the agenda. This may occur in order to best manage the time at a meeting or
to adapt to the participation of the public. To ensure participation in a particular item, we suggest
arriving at the beginning of the meeting and remaining until the item is called.
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 up to three minutes for concluding remarks after other members of the public
have spoken.
Call to Order
Closed Session 5:00-6:00 PM
Public Comments: Members of the public may speak to the Closed Session item(s); three minutes per speaker.
1.CONFERENCE WITH LABOR NEGOTIATORS
City Designated Representatives: City Manager and his designees
pursuant to Merit System Rules and Regulations (James Keene,
Lalo Perez, Joe Saccio, Kathryn Shen, Sandra Blanch, Val Fong,
Molly Stump)
Employee Organization: Utilities Management and Professional
Association of Palo Alto (UMPAPA)
Authority: Government Code Section 54957.6(a)
Study Session 6:00-7:00 PM
2.Study Session on the County of Santa Clara Expressway Study
Program and Update on the Page Mill Road & I-280 Interchange
Project
REVISED
2 June 16, 2014
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Agenda Changes, Additions and Deletions
City Manager Comments 7:00-7:10 PM
Oral Communications 7:10-7:25 PM
Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of Oral Communications period to 30 minutes.
Minutes Approval 7:25-7:30 PM
April 29, 2014
Consent Calendar 7:30-7:35 PM
Items will be voted on in one motion unless removed from the calendar by three Council Members.
3. Adoption of Fiscal Year 2015 Investment Policy
4. Approval of a Contract with Tandem Creative, Inc. In The Amount of
$90,000 for Graphic Design and Printing for the Quarterly Production
of the Enjoy! Catalog Classes and Activities Guide
5. Second Reading: Adoption of a Park Improvement Ordinance for the
Magical Bridge Playground (1st Reading: June 2, 2014 PASSED: 9-0)
6. Council Approval of Amendment No. 6 to Agreement No. C1136231
With The Housing Trust Silicon Valley to Provide a Contribution in the
Amount of $200,000 from the Residential Housing In-Lieu Fund for
Fiscal Year 2013/14 to be Expended Through Fiscal Year 2017/18,
Authorize the City Manager to Execute Amendment No. Six with the
Housing Trust Silicon Valley, and Adoption of a Budget Amendment
Ordinance of $200,000 from the Residential Housing In-Lieu Fund
7. Adoption of a Resolution Approving a Professional Services Agreement
between the Northern California Power Agency and the Cities of
Alameda, Palo Alto and Santa Clara for Electric Transmission,
Generation and Regulatory Consulting Services for a Total Not to
Exceed Amount of $166,669 for the One Year Contract Term
8. Recommendation That Council Authorize Approval of the Agreement
Between the City of Palo Alto and Palo Alto Unified School District for
Shared Funding of Two School Resource Officer Positions
3 June 16, 2014
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9.Approval of 6 Contract Amendments: (a) Amendment No. 2 to 4Leaf,
Inc. Contract C13149364, Increasing Compensation by $1,500,000 to
$3,000,000; (b) Amendment No. 2 to Kutzmann & Associates, Inc.
Contract C13149368, Increasing Compensation by $363,000 to
$726,000; (c) Amendment No. 2 to Interwest Consulting Group
Contract C13149365, Increasing Compensation by $50,000 to
$150,000; (d) Amendment No. 1 to CSG Consulting Contract
C13149366, Increasing Compensation by $50,000 to $100,000; (e)
Amendment No. 1 to TRB & Associates Contract C13149369,
Increasing Compensation by $50,000 to $100,000; and (f)
Amendment No. 1 to West Coast Code Consultants Contract
C13149367, Increasing Compensation by $385,000 to $770,000, to
Renew Contracts and Amend Scope of Work Each for a One-Year Term
Extension for On-Call Inspection, Plan Check Services, and Capital
Improvement Costs
10.Approval of Professional Services Contract with Plante & Moran, PLLC
for Enterprise Resource Planning Evaluation Assessment in the Amount
of $142,175
11.Staff Request Council Authorize the City Manager to Approve Law
Enforcement Data Sharing Agreement
12.Approval of Design Contract No. C14153579 with BKF Engineers in the
Amount of $180,000 for the Embarcadero Road Satellite Parking
Project
13.Adoption of a Resolution Determining the Proposed Calculation of the
Appropriations Limit for Fiscal Year 2015
14.Approval of Separate Five-Year Contracts with Genuent USA, LLC,
Intratek Comuter, Inc., Digital Intelligence Systems, LLC, GTC
Systems, Inc., Modis, Inc., Bodhtree Solutions, Inc. and Signature
Technology Group, Inc. For IT Temporary Staffing Support Services in
a Total Amount Not to Exceed $500,000 Per Fiscal Year for All Seven
Contracts
15.Approval of a Purchase Order with Owen Equipment in a Not to Exceed
Amount of $409,233.50 for the Purchase of a Hydro-Excavator Truck
(Scheduled Vehicle and Equipment Replacement Capital Improvement
Program VR-13000)
Signed
Contract
4 June 16, 2014
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16. Adoption of a Resolution to Establish the Palo Alto Bicycle Advisory
Committee (PABAC) as the Bicycle Advisory Committee for purposes of
the Transportation Development Act Program
17. Approval of Amendments to Power Purchase Agreements with
Elevation Solar C LLC and Western Antelope Blue Sky Ranch B LLC
18. Approval of a Construction Contract with D.L. Falk Construction, Inc. in
the Amount of $2,718,350, Approval of Amendment Number 2 to
Contract No. C12144101 with WMB Architects, Inc. in the Amount of
$141,565 for a Not-to-Exceed Amount of $426,256 for the City Hall
Remodel Project PE-12017, and Adoption of a Budget Amendment
Ordinance for Fiscal Year 2014 to Provide an Additional Appropriation
in the Amount of $1,607,109
Action Items
Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials,
Unfinished Business and Council Matters.
7:35-7:40 PM
19. 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 – (STAFF REQUESTS THIS
ITEM BE CONTINUED TO AUGUST 4, 2014)
7:40-8:10 PM
20. Public Hearing: Adoption of the Budget Ordinance for Fiscal Year 2015,
including Adoption of Operating and Capital Budgets and Municipal Fee
Schedule; Ordinance of the Council Amending Chapter 2.08 of Title 2
of the Palo Alto Municipal Code to Add Section 2.08.250 Creating a
New Department of Development Services; Adoption of five
Resolutions, including: Adopting a Dark Fiber Rate Increase of 2.6%
and Amending Utility Rate Schedules EDF-1 and EDF-2; Amending
Utility Rate Schedule D-1 (Storm and Surface Water Drainage) to
Increase Storm Drain Rates by 2.6 Percent Per Month Per Equivalent
Residential Unit for Fiscal Year 2015; Amending the 2012-2013
Compensation Plan for Management and Professional Adopted by
Resolution No. 9357 to Add One New Position and Change the Title of
Two Positions; Amending the 2013-2015 Memorandum of Agreement
Service Employees International Union (SEIU), Adopted by Resolution
No. 9398 to Add One New Position and Correct the Salary of One
Position; and Amending the Terms for the Utility Management
Professional Association, Adopted by Resolution No. 9359 to Correct
the Salary for One Position and Add Two New Positions (CONTINUED
FROM JUNE 9, 2014)
5 June 16, 2014
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8:10-9:10 PM
21.Discussion and Council Direction Regarding Potential November 2014
Charter Amendments Relating to Council Seats, Including Reducing the
Number of Council Seats from Nine to Seven, Increasing the Limit on
Terms from Two to Three Terms, Providing for Terms to Begin in
December and Other Matters
9:10-9:40 PM
22.Adoption of a Resolution Calling a Special Election for November 4, 2014 to Place a Ballot Measure before the Voters to Increase the City’s
Transient Occupancy Tax (TOT) by Two Percentage Points and Update
the TOT Ordinance to Ensure Equal Treatment of Traditional and Online
Bookings: Discussion of Polling Regarding Proposed TOT and Utility
User Tax (UUT) Ballot Measures
23.
9:40-10:25 PM
Public Hearing: Recommend Adoption of an Ordinance Requiring All
New Multi-Family Residential and Non-Residential Construction to
Provide for Current or Future Installation of EV Chargers
10:25-11:05 PM
24.Colleagues' Memo from Council Members Berman, Holman, Klein and
Schmid Regarding Local Animal Services
Inter-Governmental Legislative Affairs
Council Member Questions, Comments and Announcements 11:05-11:15 PM
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.
6 June 16, 2014
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Additional Information
Standing Committee Meetings
Finance Committee Meeting- CANCELLED
Policy and Services Committee June, 17, 2014
City School Committee Meeting June 19, 2014
Schedule of Meetings
Schedule of Meetings
Tentative Agenda
Tentative Agenda
Informational Report
City of Palo Alto’s Energy Risk Management Report for the Second
Quarter, Fiscal Year 2014
City of Palo Alto Utilities Quarterly Update for the Third Quarter of Fiscal
Year 2014
Updated City Roster
Public Letters to Council
Set 1
Set 2
City of Palo Alto (ID # 4760)
City Council Staff Report
Report Type: Study Session Meeting Date: 6/16/2014
Summary Title: County Expressway Study Program and Page Mill/280 Update
Title: Study Session on the County of Santa Clara Expressway Study Program
and Update on the Page Mill Road & I-280 Interchange Project
From: City Manager
Lead Department: Planning and Community Environment
Recommendation
This is a study session, and there is no recommended action. The study session will provide an
update and discussion about the County of Santa Clara – Expressway Study Program with a
focus on proposed study elements of expressways that traverse through or influence Palo Alto
including: Oregon Expressway-Page Mill Road, Foothill Expressway, Central Expressway, and
the Page Mill Road & I-280 Interchange. County staff will make the presentation.
Background
The County of Santa Clara is developing an update to the Comprehensive Expressway Planning
Study. The Study is updated every five years by the County to assess the condition and
performance of the expressway network and to help plan for future improvements. Updates
are either administrative --documenting improvements over the five year period --or
comprehensive, with an in-depth assessment of potential improvements given regional growth.
This current updated, called Expressway Plan 2040, is the more comprehensive analysis.
On April 7, 2014 staff provided an Information Report (Attachment A) to Council regarding
activities to date, the level of analysis to be conducted on the three expressways traversing
through or terminating in Palo Alto: Oregon Expressway-Page Mill Road, Foothill Expressway,
Central Expressway, and a focused study of the Page Mill Road & I-280 Interchange. The
assumptions for study elements included in the Information Report are still being considered
and will be analyzed as part of the Program Environmental Impact Report (PEIR) for the County
General Plan Circulation and Mobility Element. The Notice of Preparation (NOP) for the PEIR
was released by the County on May 30, 2014, with scoping comments for the environmental
analysis being accepted through June 30, 2014.
Staff has been participating in a Technical Working Group (TWG) comprised of Public Works
Directors or Transportation Officials from every city in the County to provide perspective
City of Palo Alto Page 1
regarding planned growth and appropriate transportation infrastructure improvement
opportunities as part of the study; Jaime Rodriguez, Chief Transportation Official has
represented Palo Alto on the TWG. A Policy Advisory Board (PAB) comprised of local elected
officials has been meeting with County officials to help provide community perspective and
vision guidance for growth of each City and to validate staff assumptions on improvement
opportunities for the expressway network; Councilmember Sharff is the Palo Alto
representative to the PAB.
Summary of Key Issues
As part of the Expressway Study Update the County conducted an extensive existing conditions
data assessment in 2013 to help identify the performance levels of the expressway using both
Intersection Level of Service (LOS) for key intersections such as Page Mill Road & Foothill
Expressway and Link LOS to evaluate the overall capacity of the expressways using Volume to
Capacity (V/C) ratios to identify bottleneck areas. The County is using the Future Year (2025)
assumptions of the Valley Transportation Authority (VTA) Land Use Travel Forecast Model
which tracks growth within the County and in the adjacent San Mateo County region for
monitoring of freeway linkages to the expressway system. Through Palo Alto the two LOS
methodologies (intersection and link LOS) were used for evaluation of existing conditions of the
three expressways traversing through or terminating in the City.
Based on the findings of the existing conditions assessment, the TWG discussed potential
improvement opportunities for analysis as part of the Circulation and Mobility Analysis. A
summary of the existing conditions information and staff comments is included below.
Oregon Expressway-Page Mill Road
2013 Existing Conditions
The County estimates that Oregon Expressway-Page Mill Road facility accommodates
approximately 134,000 daily vehicle trips making it the 6th busiest expressway facility in
the County of Santa Clara.
The Page Mill Road & Foothill Expressway-Junipero Serra Boulevard intersection
currently operates at LOS F during both the AM and PM peak periods with an average
intersection delay of 118.9 seconds.
Page Mill Road between I-280 and Foothill Expressway currently operates at LOS E
during the AM peak period and LOS F during the PM peak period.
Page Mill Road between Foothill Expressway-Junipero Serra Boulevard and El Camino
Real currently operates at LOS E during both the AM and PM peak periods.
2025 Future Projections
The County anticipates the Page Mill Road & Foothill Expressway-Junipero Serra
Boulevard intersection to continue to operate at LOS F in 2025. The intersection of
Foothill Expressway & Hanover Street is projected to operate at LOS F in 2025.
The County projects the existing AM peak period LOS E conditions on Page Mill Road
City of Palo Alto Page 2
between I-280 and Foothill Expressway to worsen to LOS F by 2025.
The County also projects that the existing LOS E conditions on Page Mill Road, between
FoothillExpressway-Junipero Serra Boulevard, will extend onto Oregon Expressway to
Highway 101 by 2025.
Potential Improvements for Study
Bicycle and Pedestrian Facilities:
Bicycle Lane addition east of El Camino Real with guidance off of Page Mill Road towards
Park Blvd
Multi-use trail along the north side of Page Mill Road between Foothill Expressway and
Old Page Mill Road
Multi-use trail along the south side of Page Mill Road between Deer Creek Road and I-
280 with supporting retaining wall improvements
El Camino Real & Page Mill Road:
Capacity improvements including extending the double westbound left turn lanes
(Westbound Page Mill Rd to Southbound El Camino Real towards Mountain View)
Bulb-out improvement on the southeast corner (AT&T Building) to help reduce
pedestrian crosswalk distances and to provide a larger radius for the return
Pedestrian improvements with a focus on the southwest corner (Palo Alto Square)
Page Mill Road & Hansen Avenue Street
Identify opportunities to increase the storage capacity of the eastbound left turn
movement into 1050 Page Mill Road
Page Mill Road & Hanover Street
Explore a 4-lane to 2-lane reduction on each approach of Hanover Street to support
bicycle lane additions on Hanover Street and new north-south left turn lanes with
protected left turn signal improvements
Study the left turn storage capacity of Page Mill Road
Study opportunities for addition of right turn lanes from Page Mill Road onto Hanover
Street
Page Mill Road & Porter Drive
Study the left turn storage capacity of Page Mill Road
Extend bicycle lanes on Porter Drive to Page Mill Road
Improve storage capacity on Porter Drive
Page Mill Road & Foothill Expressway Intersection Improvement Concepts:
Widening of Page Mill Road East to improve capacity
Grade separation with Foothill Expressway under Page Mill Road
Grade separation with Page Mill Road under Foothill Expressway
City of Palo Alto Page 3
Page Mill Road – West of Foothill Expressway
Widening of Page Mill Road from 4-Lanes to 6-Lanes
Identify constraints at Coyote Hill Road
o Remove left turn access to and from Coyote Hill Road
o Remove just left turn access from Coyote Hill Road but preserve left turn access onto
Coyote Hill only
Page Mill Road-Oregon Expressway & Alma Street Interchange
For an additional $65,000 a focused study can be prepared to identify near-term
improvements for the interchange. No immediate improvements have been identified.
Community Outreach Plan
The Concept Plan Line Study will include two focused community outreach meetings in Palo
Alto and Study Sessions with both the Planning & Transportation Commission and City Council.
Outreach to Stanford University, City of Los Altos, and Town of Los Altos Hills will be included as
part of each community meeting and study session.
Staff would appreciate Council input on these potential improvements, and the Council’s
interest in partnering with the County of Santa Clara to fund the development of a Concept Plan
Line for the Page Mill Road corridor. The City’s cost to participate in the study is estimated at
$100,000 and funds are available from the Stanford Research Park Traffic Impact Fee Program.
A proposed study scope is provided in Attachment B and based on Council interest; staff is
prepared to return to Council with a Budget Amendment Ordinance (BAO) to fund the study.
Foothill Expressway
2013 Existing Conditions
The County estimates the Foothill Expressway facility through Palo Alto currently
operates at LOS C or better with the exception of the Page Mill Road intersection.
In Los Altos the section of Foothill Expressway north of El Monte, including the El Monte
intersection, operates at LOS F. This impacts the commute into Palo Alto.
2025 Future Projections
The County estimates that the intersection of Foothill Expressway & Arastradero Road
will operate at LOS F in 2025.
Potential Improvements for Study
The TWG are recommending the Expressway Plan study a grade separation of Foothill
Expressway & Arastradero Road with Foothill Expressway going underneath Arastradero Road.
Grade separation will allow Arastradero Road to remain at its current grade and may allow for
the removal of traffic signals at the Foothill Expressway and Miranda Avenue intersections and
replacement with roundabout facilities. The existing multi-use path along the north side of
Arastradero Road (West of Foothill Expressway) can be extended to Miranda Avenue improving
City of Palo Alto Page 4
bicycle and pedestrian connections to Gunn High School. Council input on this study idea would
be appreciated.
Central Expressway
2013 Existing Conditions
The County of Santa Clara does not include any LOS information regarding Alma Street
within their report.
The County estimates that Central Expressway immediately south of Palo Alto operates
at LOS D through the City of Mountain View.
2025 Future Projections
The County estimates that Central Expressway operations will degrade in the 2025 to
LOS E south of Rengstorff Avenue and that the Rengstorff Avenue intersection will
operate at LOS F.
There are no capacity operational improvements proposed by the County of Santa Clara
adjacent to the City of Palo Alto border. Staff is currently partnering with Google to study the
Alma Street & San Antonio Avenue intersection as part of the Bicycle Boulevard Program and
will be developing improvement concepts that will be shared with the County of Expressway for
consideration to include within the County Expressway Study to help qualify the improvements
for regional fund improvements.
Page Mill Road & I-280 Interchange
In the April 7, 2014 Information Report staff noted previous work conducted by the Caltrans
and the County of Santa Clara for near-term improvements to signalize the I-280 off-ramp
movements and to add pedestrian-bicycle facilities on Page Mill Road. Caltrans studied these
improvements as part of an Initial Study to help expedite the use of $2.2M from the State
Highway Safety Fund for the improvements. Caltrans has delayed the completion of their Initial
Study at the request of the County of Santa Clara to allow the County time to do additional
analysis of the interchange as part of the County Expressway Study. No discussion of the Page
Mill Road & I-280 interchange is required at this time as the County is requesting time to
develop more focused concept plans for discussion with the Council and Palo Alto-Los Altos
Hills communities later this Fall.
Timeline
The County of Santa Clara released the NOP for the County General Plan Circulation and
Mobility Element PEIR on May 30, 2014, with scoping comments due by June 30, 2014. Based
on the input from this Study Session, staff will prepare a response letter to the NOP for
signature by the City Manager.
Environmental Review
The County is preparing a Program Level EIR for the County General Plan, which includes
City of Palo Alto Page 5
expressway system improvements and policies consistent with the Expressway Study 2040 Plan.
Courtesy Copies
Dawn Cameron – County of Santa Clara
Dan Collen – County of Santa Clara
Fariba Zohoury - Caltrans
Attachments:
Attachment A: City Council Informational CMR of April 7, 2014 (PDF)
Attachment B: Proposed Scope of Work - 060514 (PDF)
City of Palo Alto Page 6
City of Palo Alto (ID # 4644)
City Council Staff Report
Report Type: Informational Report Meeting Date: 4/7/2014
Summary Title: County Expressway Study Update
Title: Informational Report - County of Santa Clara Expressway Study Update
and Page Mill Rd & I-280 Traffic Signal Improvements
From: City Manager
Lead Department: Planning and Community Environment
Recommendation
This is an Informational Report regarding the County of Santa Clara Expressway Plan 2040
Program, including an update on Caltrans’ traffic signal installation project at Page Mill Road &
I-280. No action is recommended.
Background
The County of Santa Clara conducts a study of the County Expressway System approximately
every five years to help identify projects that will improve the capacity and/or operations of the
system. The expressway study is prepared in parallel with the Valley Transportation Authority’s
(VTA’s) Valley Transportation Plan (VTP) Update, which is used to identify needed
transportation projects around the County by program type including: Highways, Expressways,
Local Streets & County Roads, Roadway Maintenance, Transit, Transportation Systems and
Operations and Management, Bicycle, and the Community Design and Transportation Program.
An update of the VTP 2035 to create the VTP 2040 is currently underway and projects identified
as part of the County of Santa Clara Expressway Plan 2040 study will feed into the VTP 2040.
The County of Santa Clara Expressway Plan process has involved two advisory groups: 1) the
Policy Advisory Board (PAB) comprised of local elected officials from every city in the County,
two County Supervisors, and two members of the VTA Board of Directors; and 2) the Technical
Working Group (TWG) comprised of local Public Works Directors or Transportation Officials
from every city. Councilmember Greg Scharff was appointed to represent Palo Alto on the PAB,
although the meeting schedule conflicts with City Council meetings, and Chief Transportation
Official Jaime Rodriguez represents Palo Alto on the TWG. Both the PAB and TWG have each
met twice since the Expressway Plan update was initiated in August 2013. Focused Workshops
City of Palo Alto Page 1
of both the PAB and TWG have met separately to discuss individual expressway conditions and
needs.
Within the City of Palo Alto, three expressways terminate or pass through the city including:
Oregon Expressway-Page Mill Road - traversing the City east-west between Highway 101
and Intersection 280.
Foothill Expressway - traversing the city north-south between the Los Altos border and
Junipero Serra Boulevard.
Central Expressway - terminating in Palo Alto at the southern border with the City of
Mountain View. Central Expressway becomes Alma Street at San Antonio Avenue.
The County of Santa Clara is also currently developing a new County General Plan Circulation
and Mobility Element. The Expressway System and major improvements for the system will be
included in the Circulation and Mobility Element and analyzed as part of a Program
Environmental Impact Report (PEIR) for the General Plan Element. The County plans on
releasing a Notice of Preparation (NOP) in May 2014. In advance of the NOP, the County has
conducted preliminary analysis of each of the expressway facilities to help identify potential
major capacity or operational improvements that may be necessary to maintain an acceptable
Level of Service (LOS) along each expressway. The remainder of this report highlights existing
condition findings and projects for each of three expressway facilities adjacent to or within the
City of Palo Alto and discusses potential projects discussed through the PAB and TWG for
inclusion with the NOP. Inclusion of projects within the NOP does not guarantee improvement
of those projects but allows for their continued study through the Expressway Plan 2040 update
to help communities discuss and determine whether the projects are preferred for inclusion in
the final report. The City will have an opportunity to comment on the scope of the projects and
the associated environmental review process once the County issues its NOP in May.
Oregon Expressway-Page Mill Road
2013 Existing Conditions
The County estimates that Oregon Expressway-Page Mill Road facility accommodates
approximately 134,000 daily vehicle trips making it the 6th busiest expressway facility in
the County of Santa Clara.
The Page Mill Road & Foothill Expressway-Junipero Serra Boulevard intersection
City of Palo Alto Page 2
currently operates at LOS F during both the AM and PM peak periods with an average
intersection delay of 118.9 seconds.
Page Mill Road between I-280 and Foothill Expressway currently operates at LOS E
during the AM peak period and LOS F during the PM peak period.
Page Mill Road between Foothill Expressway-Junipero Serra Boulevard and El Camino
Real currently operates at LOS E during both the AM and PM peak periods.
2025 Future Projections
The County anticipates the Page Mill Road & Foothill Expressway-Junipero Serra
Boulevard intersection to continue to operate at LOS F in 2025. The intersection of
Foothill Expressway & Hanover Street is projected to operate at LOS F in 2025.
The County projects the existing AM peak period LOS E conditions on Page Mill Road
between I-280 and Foothill Expressway to worsen to LOS F by 2025.
The County also projects that the existing LOS E conditions on Page Mill Road between
Foothill Expressway-Junipero Serra Boulevard will extend onto Oregon Expressway to
Highway 101 by 2025.
The following projects are being considered by the County of Santa Clara as part of the
development of the Expressway Plan 2040 project:
Include the Page Mill Road & I-280 Interchange in the study area for documentation of
existing conditions and LOS analysis.
I-280 Interchange – Modify interchange to improve vehicle operations and safety for
bicyclists and pedestrians.
Foothill Expressway between I-280 and El Camino Real – Consider widening from 4-lanes
to 6-lanes. City of Palo Alto has available funds in the Stanford Research Park Traffic
Impact Fee (TIF) Program to assist in identifying the feasibility of this project.
Grade Separate Page Mill Road & Foothill Expressway-Junipero Serra Boulevard
intersection - this project may include an alternative concept to just widen the Page Mill
Road approaches of the intersection to improve capacity.
Page Mill Rd & Hanover Street – Convert to 8-phase traffic signal operation to address
2025 LOS F conditions.
Alma Street Bridges – Reconstruct and modify the Alma Street bridges to improve
vehicle operations and safety for bicyclists and pedestrians.
US 101/Embarcadero Road/Oregon Expressway Interchange – Modify interchange to
reduce queue spillbacks onto expressway (freeway project)
City of Palo Alto Page 3
Foothill Expressway
2013 Existing Conditions
The County estimates the Foothill Expressway facility through Palo Alto currently
operates at LOS C or better with the exception of the Page Mill Road intersection.
In Los Altos the section of Foothill Expressway north of El Monte, including the El Monte
intersection, operate at LOS F, this impacts the commute into Palo Alto.
2025 Future Projections
The County estimates that the intersection of Foothill Expressway & Arastradero Road
will operate at LOS F in 2025.
The following projects are being considered by the County of Santa Clara as part of the
development of the Expressway Plan 2040 project:
Identify in planning documents the existing 2013 LOS E conditions at the Foothill
Expressway & Arastradero Road intersection.
Grade Separate the Foothill Expressway & Arastradero Road intersection with Foothill
Expressway going underneath Arastradero Road. Grade separation will allow
Arastradero Road to remain at its current grade and may allow for the removal of traffic
signals at the Foothill Expressway and Miranda Avenue intersections and replacement
with roundabout facilities. The existing multi-use path along the north side of
Arastradero Road (West of Foothill Expressway) can be extended to Miranda Avenue
improving bicycle and pedestrian connections to Gunn High School.
Central Expressway
2013 Existing Conditions
The County of Santa Clara does not include any LOS information regarding Alma Street
within their report.
The County estimates that Central Expressway immediately south of Palo Alto operates
at LOS D through the City of Mountain View.
City of Palo Alto Page 4
2025 Future Projections
The County estimates that Central Expressway operations will degrade in the 2025 to
LOS E south of Rengstorff Avenue and that the Rengstorff Avenue intersection will
operate at LOS F.
There are no capacity operational improvements proposed by the County of Santa Clara
adjacent to the City of Palo Alto border. Staff has requested that the County consider the San
Antonio Avenue intersection where Central Expressway currently ends so that bicycle and
pedestrian improvements to the San Antonio Caltrain Station can be considered.
A copy of existing and 2025 LOS Findings for the Expressway Study 2040 are provided in
Attachments A and B respectively.
Foothill Expressway & I-280 Traffic Signal Improvements
In 2011, the City of Palo Alto requested that Caltrans conduct a traffic signal warrant study as
part of a request by then Mayor Sid Espinosa. Caltrans conducted a warrant study and found
that the intersection of Page Mill Road & I-280 SB met the installation criteria for traffic signal.
Caltrans funded the project at $400,000 through their Highway Safety Program. Parallel to the
Caltrans traffic signal warrant study, the City of Palo Alto funded a Concept Study for
Interchange Improvements at Page Mill Road & I-280 in partnership with the County of Santa
Clara. The Concept Study identified the need for a larger, focused study, which is now
proposed as part of the Expressway 2040 Plan project.
Caltrans participated in the Concept Study and agreed to include the Page Mill Road & I-280 NB
intersection as part of their improvement project and increased their funding for the project to
$2.2M to include additional sidewalk and bicycle improvements between Page Mill Rd & Old
Page Mill Road to the I-280 SB intersection.
More recently, the Town of Los Altos Hills has expressed concerns regarding impacts to the
rural environment of the Page Mill Road & I-280 intersections and has submitted a petition to
Caltrans, asking them to defer the project. Caltrans is planning to respond to the Town of Los
Altos Hills petition but is continuing design work in conjunction with their community
engagement process. A copy of the Draft Caltrans Traffic Signal Project Concept Plan is
provided in Attachment C. Staff is hoping to schedule a study session to discuss this project
with the Council in more detail next month.
City of Palo Alto Page 5
Timeline
The County of Santa Clara plans to release an NOP for the County General Plan Circulation and
Mobility Element PEIR, which includes the future plans for the Expressway System by May
2014. The County has requested that the City submit any additional major capacity/operation
improvement projects by April 11th so that they may be included in the NOP. (The projects
discussed within this report are already included in the Draft NOP.)
City staff has requested that the County of Santa Clara and Caltrans attend a City Council study
session to provide the City and the community with additional information, but this study
session cannot be scheduled before April 11, and will instead occur after the NOP is issued.
Environmental Review
The County will prepare a Program Level EIR for their Expressway Study 2040 Plan, which will
help identify projects for inclusion in the County General Plan and in the VTP 2040 Update
being conducted in parallel with the County Expressway Plan study.
Courtesy Copies
Dawn Cameron – County of Santa Clara
Dan Collen – County of Santa Clara
Fariba Zohoury - Caltrans
Attachments:
Attachment A: County 2013 Map (PDF)
Attachment B: County 2025 Map (PDF)
Attachment C: Caltrans I-280 Page Mill TS Project Concept (PDF)
City of Palo Alto Page 6
Job No. 4469.00June 2, 2014
Page 1 of 7
Exhibit A
PROJECT DESCRIPTION
Client County of Santa Clara –Roads andAirports Department
Project Name Page Mill Road Corridor Evaluation
City Palo Alto
Description Ultimate Conceptual Layout for Page Mill Road
OVERVIEW
HMH (“Consultant”)will provide to the County of Santa Clara -Roads and AirportsDepartment(“County”)professional services in collaboration with the City of Palo Alto
("City") to develop a preferred option for the Ultimate Conceptual Layout of Page Mill Road
corridor between the Westerly intersection with Old Page Mill Road and Birch Street,
located entirely within the County unincorporated area and the City of Palo Alto (“Project”).
The scope includes developing the following designs with the intent to relieve congestionandcomply with the California Complete Streets Act:
Conceptual plan for widening Page Mill Road from four to six-lanes, and
study the feasibility of accommodating six-lanes within existing right-of-way;
Conceptual footprint for grade separation of Foothill Expressway/Junipero
Serra Boulevard -Page Mill Road intersection;
Conceptual layout plans for adding northbound and southbound left turnlanes at Page Mill Road / Hanover Street intersection and converting the
signal to an 8-phase operation. The conceptual plan shall also include
converting Hanover Street to one-through lane in each direction plus bike
lane; and
Conceptual layout plan to accommodate current and future proposed
developments at the intersection of Page Mill Road and El Camino Real.
STUDY PURPOSE AND OBJECTIVE
The purpose of developing the conceptual plan is to identify required improvements on
Page Mill Road to relieve congestion, and identify the impacts of intersection improvements
at Hanover Street, Foothill Expressway, Hansen Way, Porter Drive, Coyote Hill Road and
the El Camino Real.Existing bicycle lanes on Page Mill will be preserved in the concept
plans.
Job No. 4469.00June 2, 2014
Page 2 of 7
SCOPE OF SERVICES
Task A.Project Management
Steve Loupe will be the Project Manager, and will be responsible for HMH services on the
project. In addition, he will manage our subconsultants and coordinate the team with the
County of Santa Clara -Roads and Airports Department, City of Palo Alto and otheragencies involved.
The Project Manager will be responsible for project organization and monitoring. This
involves planning the work program, organizing the team personnel to implement the
program, monitoring the team progress, and controlling the quality of the work products tocomplete the project on time and within budget.
The work program will include periodic team meetings with the County of Santa Clara and
City of Palo Alto to establish clear, concise project goals, design criteria, schedules and
budgets. Minutes will be taken at meetings describing topics discussed, decisions madeand action to be taken. Meeting minutes will be distributed to participants and appropriateaffected parties.It is anticipated that HMH will also participate in at least two community
meetings, one City Planning Transportation Commission meeting and one City Council
study session.
Task B.Preliminary Investigation / Data Collection
Obtain,review, and coordinate available data and information pertinent to the project from
the County,City,VTA,and other agencies. Such information may include the following:
Environmental clearance documents from other relevant projects.
Preliminary plans and construction documents prepared previously for portions ofthe project.
Aerial photos, topographic base sheets, master plans record drawings of City,
County, and facilities and utility systems.
Survey notes, parcel maps, tract maps and other record right-of-way documents.
Available traffic engineering studies and level of service calculations.
Job No. 4469.00June 2, 2014
Page 3 of 7
Task C. Record Right-of-Way Mapping
Perform surveys of street monumentation to establish control in CaliforniaCoordinate system for record right-of-way mapping.Perform field surveys of
existing curbs and surface features necessary to complete the scope of work.
Calculate existing right-of-way from available record information and input from fieldsurveysin AutoCAD for use in design.
Task D. Plan Line Development
Project Area Base Mapping.Utilizing available aerial photos,Consultant will prepare a
base mapping that will show:existing right-of-way, assessor parcel numbers,utilities of a
high risk or critical nature such as power poles, proposed curb lines,and proposed traffic
lane geometry for projected traffic volumes except for features visible on the aerial photos.
Such base map will not show plotted landscape features, signage, underground utilities(storm, sanitary, water, gas, reclaimed water, fiber-optic cables, traffic signal conduit, etc.),
and fence.
Preliminary Plan Line Submittal.Based on comments received from the communication
and coordination meetings,Consultant will advance the plan line to the point that the majordesign concept is represented in a preliminary plan line submittal.Bike lanes will be
preserved and/or added to the design concept.Consultant will work with the City and
County to resolve any conflicts between the requirements of different stakeholders prior to
this submittal.
Preliminary plan line drawings will be developed at a scale of 1” =40’, to show the
fundamental base map elements required within the Project Area that would be necessary
to carry out the design concept.
Draft Plan Line Submittal. Based on comments received from the preliminary plan linesubmittal,Consultant will work with City, County,and other stakeholders to resolve any
remaining conflicts between the comments of different reviewers. Consultant will prepare
and submit a memo with “response to comments” received from the preliminary plan line
submittal.
Final Plan Line Study.In response to the draft plan line submittal review process,
Consultant will incorporate any final revisions and prepare final documents, technical
memorandum,and cost estimate in accordance with City and County’s instructions.
Job No. 4469.00June 2, 2014
Page 4 of 7
Task E. Page Mill Road / Foothill Expressway Grade Separation
Develop three road concept sketches to separate Page Mill Road and Foothill Expressway
with connecting ramps including Page Mill Road under at-grade Foothill Expressway,Foothill Expressway under at-grade Page Mill Road, and a partial grade separation for justthe high volume traffic movement(s).A fourth alternative will identify potential at-grade
improvements in lieu of a grade separation that may not fully address the intersection level
of service needs but will improve traffic flow.Each grade separation concept will include
unsignalized through traffic on Page Mill Road and signal(s) at the connecting rampintersection(s) with Foothill Expressway. A single concept will be selected and developedat 1"=40" scale for use in the Plan Line Study.
Task F. Page Mill Road /Hanover Street Intersection
The addition of a northbound and southbound left turn lane and converting the signal to an8-phase operation will be studied both with and without Page Mill Road widening at this
intersection, and shall include converting Hanover Street to one-through lane in each
direction plus bike lanes.
Task G. Page Mill Roa d / El Camino Real Intersection
Develop concept layout plan to accommodate current and future proposed developments at
the intersection of Page Mill Road and El Camino Real. A single concept will be selected
and developed for use in the Plan Line Study to include westbound left turn movements,southeast corner improvements and southwest corner improvements (elimination ofsouthboundslip ramp).
Task H. Page Mill Road / Hansen Way Intersection
Develop concept layout plan for extending left-turn storage capacity of eastbound Page MillRoad and Hansen Way Intersection with and without Page Mill Road widening. County to
provide applicable traffic data.
Task I.Page Mill Road /Porter Drive Intersection
Develop concept layout plan for the addition of an eastbound U-turn only movement at this
intersection with and without Page Mill Road widening. County to provide applicable traffic
data.
Task J. Page Mill Road / Coyote Hill Road Intersection
Develop concept layout plan for options that will necessitate signalization or street closure
improvements with Page Mill Road widening.
Job No. 4469.00June 2, 2014
Page 5 of 7
Task K.Preliminary Opinion of Probable Construction Costs
Consultant will prepare a preliminary estimate of probable construction costs based uponthe geometry to be developed in the Final Plan Line submittal.
Task L.Reimbursable Expenses
Client will reimburse Consultant for reimbursable expenses that may include: reproductionof plans and documents, overnight mail, delivery and courier services, fees charged byagencies and utilities to obtain information on existing facilities, fees advanced to public
agencies, premiums for additional insurance requirements requested by Client, and other
costs and expenses incurred at Client’s request.
DELIVERABLES
Consultant shall prepare a draft and final conceptual layouts for all the items in the scope of
work, and any technical memorandum describing the potential constraints, special
challenges, etc., that were considered in project design.
DUTIES OF COUNTY
The following activities are the responsibility of County. This is not intended to represent a
complete list but is included for additional clarity.
Provide copies of available plans, exhibits, records and data pertinent to the project.
Provide all available traffic counts, turning volumes and turn lane storage lengthrequirements.
Assist Consultant in obtaining permission to enter the grounds as necessary to
perform the services.
SPECIAL PROVISIONS
Consultant may utilize computer aided design and drafting software and other applications
of Consultant’s choice in providing the services in this Agreement. File structure andorganization of data will be at Consultant’s discretion, and are intended only forConsultant’s use on the project.
The following services may be required for successful completion of the project, but are
specifically not included in this scope of services. Consultant may provide some of theseservices pursuant to the “Changes in Services” section of this agreement, or Client may
Job No. 4469.00June 2, 2014
Page 6 of 7
engage others to provide these services. This is not intended to represent a complete list,
but is added only for clarity.
Traffic engineering, level-of-service queue length calculations, operational analysisor preliminary signal designs.
Environmental Impact Reports, Special Studies and Reports (Noise, Traffic, Biotic,
etc.) or Phase I or Phase II analysis.
Location of trees by field surveys.
Uncovering or potholing existing underground facilities.
Record of Survey maps.
Substantial revisions to plan line drawings based upon comments received after the
first round of meetings with the community,City Planning Transportation
Commission, or the City Council study session.
Job No. 4469.00June 2, 2014
Page 7 of 7
SCHEDULE
Consultant will endeavor to complete the services in accordance with the following
timeframes:
Task Weeks After NTP
Preliminary Investigation 3 Weeks
Preliminary Plan Line Submittal 6 WeeksDraft Plan Line Submittal 12 Weeks*Final Plan Line Submittal with Estimate of 16 Weeks*
Probable Cost
(*assumes 3-week response from agencies and shareholders)
Due to the level of coordination required with other agencies and elements that are beyond
Consultant’s control, adjustments to these timeframes may be required. Consultant will
communicate with City regarding such adjustments.
City of Palo Alto (ID # 4864)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 6/16/2014
City of Palo Alto Page 1
Summary Title: Investment Policy Adoption
Title: Adoption of Fiscal Year 2015 Investment Policy
From: City Manager
Lead Department: Administrative Services
RECOMMENDATION MOTION
The City Council adopts the City’s Investment Policy without any changes.
RECOMMENDATION
Staff recommends the City Council adopt the City’s Investment Policy without any changes.
DISCUSSION
During the annual budget process, staff submits the Investment Policy to Council for review and
approval (Attachment A). For Fiscal Year 2015, staff is proposing no changes to the investment
policy.
RESOURCE IMPACT
There is no budget impact associated with this report.
POLICY IMPLICATIONS
This recommendation does not represent any change to City policies.
ENVIRONMENTAL REVIEW
The actions requested in this report do not constitute a project for the purposes of the
California Environmental Quality Act (CEQA).
Attachments:
Attachment A: Proposed City of Palo Alto Investment Policy, Fiscal Year 2014-15 (PDF)
1
ATTACHMENT A
PROPOSED CITY OF PALO ALTO
Investment Policy
Fiscal Year 2014-15
With No Changes
INTRODUCTION
The City of Palo Alto invests its pooled idle cash according to State of California law and the charter
of the City of Palo Alto. In particular, the City follows “The Prudent Investor Standard” cited in the
State Government Code (Section 53600.3). Under this standard, all governing bodies of local
agencies or persons authorized to make investment decisions on behalf of the City are trustees and
therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting,
purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care,
skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to
the general economic conditions and the anticipated needs of the agency, that a prudent person
acting in a like capacity and familiarity with those matters would use in the conduct of funds of a
like character and with like aims, to safeguard the principal and maintain the liquidity needs of the
agency.
INVESTMENT PHILOSOPHY
The basic principles underlying Palo Alto's investment philosophy is to ensure the safety of public
funds; provide that sufficient money is always available to meet current expenditures; and achieve a
reasonable rate of return on its investments.
The City's preferred and chief practice is to buy securities and to hold them to their date of maturity
rather than to trade or sell securities prior to maturity. The City may, however, elect to sell a security
prior to its maturity should there be a significant financial need. If securities are purchased and held
to their maturity date, then any changes in the market value of those securities during their life will
have no effect on their principal value. Under a buy and hold philosophy, the City is able to protect
its invested principal. The economy, the money markets, and various financial institutions (such as
the Federal Reserve System) are monitored carefully to make prudent investments and to assess the
condition of the City’s portfolio.
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INVESTMENT OBJECTIVES
The primary objectives, in priority order, of investment activities shall be safety, liquidity, and yield:
1. Safety: Safety of principal is the foremost objective of the investment program.
Investments shall be undertaken in a manner that seeks to ensure the preservation of
capital in the overall portfolio. The objective will be to mitigate credit risk and interest
rate risk.
a) Credit risk is the risk that an obligation will not be paid and a loss will result.
The City will seek to minimize this risk by:
Limiting investment to the safest types of securities as listed in the
“Authorized Investment” section.
Diversifying its investments among the types of securities that are
authorized under this investment policy.
b) Interest rate risk is the risk that changes in interest rates will adversely affect the
value of an investor’s portfolio. For example, an investor with large holdings in
long-term bonds has assumed significant interest rate risk because the value of
the bonds will fall if interest rates rise. The City can minimize this risk by:
Buying and holding its securities until maturity.
Structuring the investment portfolio so that securities mature to meet cash
flow requirements.
To further achieve the objective of safety, the amount that can be invested in all
investment categories, excluding obligations of the U.S. Government and its agencies, is
limited either as a percentage of the portfolio or by a specific dollar amount. These
limits are defined under the “Authorized Investments” section.
2. Liquidity: Liquidity is the second most important objective of the investment
program. The investment portfolio shall remain sufficiently liquid to meet all operating
requirements that may be reasonably anticipated. This is accomplished by maintaining
a portion of the portfolio in liquid money market mutual funds or local government
investment pools. In addition, the City will maintain one month’s cash needs in short
term investments and at least $50 million shall be maintained in securities maturing in
less than two years. Since all possible cash demands cannot be anticipated, however,
the portfolio will consist of securities with active secondary or resale markets should the
need to sell a security prior to maturity arises.
3
3. Yield: Yield on the City’s portfolio is last in priority among investment objectives.
The investment portfolio shall be designed to obtain a market rate of return that reflects
the authorized investments, risk constraints, and liquidity needs outlined in the City’s
investment policy. Compared to similar sized cities, the City of Palo Alto should be
able to take advantage of its relatively large reserve balances to achieve higher yields
through long-term investments. In addition, the City will strive to maintain the level of
investment of idle funds as close to 100 percent as possible.
SCOPE
A. This investment policy shall apply to all financial assets of the City of Palo Alto as accounted
for in the Comprehensive Annual Financial Report (CAFR), including but not limited to the
following funds:
1. General Fund
2. Special Revenue Funds
3. Debt Service Funds
4. Capital Project Fund
5. Enterprise Funds
6. Internal Service Funds
7. Trust and Agency Funds
B. The policy does not cover funds held by the Public Employees Retirement System or funds of
the Deferred Compensation program.
C. Investments of bond proceeds shall be governed by the provisions of the related bond
indentures.
GENERAL INVESTMENT GUIDELINES
1. The maximum stated final maturity of individual securities in the portfolio should be ten
years.
2. A maximum of 30 percent of the par value of the portfolio shall be invested in securities
with maturities beyond five years.
3. The City shall maintain a minimum of one month’s cash needs in short term
investments.
4. At least $50 million shall be maintained in securities maturing in less than 2 years.
5. Should the ratio of the market value of the portfolio to the book value of the portfolio
fall below 95 percent, the Administrative Services Department will report this fact to the
City Council within a reasonable time frame and evaluate whether there is any risk of
holding any of the securities to maturity.
4
6. Commitments to purchase securities newly introduced on the market shall be made no
more than three (3) working days before pricing.
7. Whenever possible, the City will obtain three or more quotations on the purchase or sale
of comparable securities and take the higher yield on purchase or higher price on sale.
This rule will not apply to new issues, which are purchased at market no more than three
(3) working days before pricing, as well as to LAIF, City of Palo Alto bonds, money
market accounts and mutual funds, all of which shall be evaluated separately.
8. Where the Investment Policy specifies a percentage limitation for a particular category
of investment, that percentage is applicable only at the date of purchase. A later increase
or decrease in a percentage resulting from a change in the portfolio’s assets or values
shall not constitute a violation of that restriction. As soon as possible, percentage
limitations will be restored as investments mature in each category.
AUTHORIZED INVESTMENTS
The California Government Code (Sections 53600 et seq.) governs investment of City funds. The
following investments are authorized:
1. U.S. Government Securities (e.g. Treasury notes, bonds and bills) Securities that
are backed by the full faith and credit of the United States
a) There is no limit on purchase of these securities.
b) Securities will not exceed 10 years maturity.
c) All purchased securities must have an explicit or a de facto backing of
the full faith and credit of the U.S. Government.
2. U.S. Government Agency Securities – Obligations issued by the Federal
Government agencies (e.g. Federal National Mortgage Association).
a) There is no limit on purchase of these securities except for:
Callable and Multi-step-up securities provided that:
- The potential call dates are known at the time of purchase;
- the interest rates at which they “step-up” are known at the
time of purchase; and
- the entire face value of the security is redeemed at the call
date.
- No more than 25 percent of the par value of the portfolio.
b) Securities will not exceed 10 years maturity.
5
3. Bonds of State of California Local Government Agencies
a) Having at time of investment a minimum Double A (AA/AA2) rating as
provided by a nationally recognized rating service (e.g. Moody’s and/or
Standard and Poor’s).
b) May not exceed 10 percent of the par value of the portfolio.
4. Certificates of Deposit (CD) - A debt instrument issued by a bank for a specified
period of time at a specified rate of interest.
a) May not exceed 20 percent of the par value of the portfolio.
b) No more than 10 percent of the par value of the portfolio in
collateralized CDs in any institution.
c) Purchase collateralized deposits only from federally insured large banks
that are rated by a nationally recognized rating service (e.g. Moody’s
and/or Standard and Poor’s).
d) For non-rated banks, deposit should be limited to amounts federally
insured (FDIC). – See Appendix C
e) Rollovers are not permitted without specific instruction from authorized
City staff.
5. Banker's Acceptance Notes (BA) – Bills of exchange or time drafts drawn on and
accepted by commercial banks. Purchase of banker’s acceptances are limited to:
a) No more than 30 percent of the par value of the portfolio.
b) Not to exceed 180 days maturity.
c) No more than $5 million with any one institution.
6. Commercial Paper - Short-term unsecured obligations issued by banks,
corporations, and other borrowers. Purchases of commercial paper are limited to:
a) Having highest letter or numerical rating as provided for by a nationally
recognized rating service (e.g. Moody’s and/or Standard and Poor’s).
b) No more than 15 percent of the par value of the portfolio.
c) Not to exceed 270 days maturity.
6
d) No more than $3 million or 10 percent of the outstanding commercial
paper of any one institution, whichever is lesser.
7. Local Agency Investment Fund (LAIF) – A State of California managed
investment pool may be used up to the maximum permitted by California State Law.
8. Short-Term Repurchase Agreements (REPO) – A contractual agreement between
a seller and a buyer, usually of U.S. government securities, whereby the seller agrees
to repurchase the securities at an agreed upon price and, usually, at a stated time.
a) Not to exceed 1 year.
b) Market value of securities that underlay a repurchase agreement shall be
valued at 102 percent or greater of the funds borrowed against those
securities.
c) A Master Repurchase agreement must be signed with the bank or dealer.
9. Money Market Deposit Accounts – Liquid bank accounts which seek to maintain a
net asset value of $1.00.
10. Mutual Funds which seek to maintain a net asset value of $1.00 and which are
limited essentially to the above investments and further defined in note 9 of
Appendix A
a) No more than 20 percent of the par value of the portfolio.
b) No more than 10 percent of the par value with any one institution.
11. Negotiable Certificates of Deposit (NCD) issued by nationally or state chartered
banks and state or federal savings institutions and further defined in note 11 of
Appendix A. Purchases of negotiable certificates of deposit:
a) May not exceed 10 percent of the par value of the portfolio.
b) No more than $5 million in any one institution.
12. Medium-Term Corporate Notes – Issued by corporation organized and operating
within the United States or by depository institutions licensed by the United States or
any state and operating with the United States.
a) Not to exceed 5 years maturity.
b) Securities eligible for investment shall have a minimum rating of AA
from a nationally recognized rating service (e.g. Moody’s and/or
7
Standard & Poor’s).
c) No more than 10 percent of the par value of the portfolio.
d) No more than $5 million of the par value may be invested in securities of
any single issuer, other than the U.S. Government, its agencies and
instrumentality.
e) If securities owned by the City are downgraded by either Moody’s or
Standard & Poors to a level below AA, it shall be the City’s policy to
review the credit situation and make a determination as to whether to sell
or retain such securities in the portfolio.
Appendix A provides a more detailed description of each investment vehicle and its security and
liquidity features. Most of the City's short-term investments will be in securities which pay principal
upon maturity, while long-term investments may be in securities that periodically repay principal, as
well as interest. Most of the City's investments will be at a fixed rate. However, some of the
investments may be at a variable rate, so long as that rate changes on specified dates in pre-
determined increments.
PROHIBITED INVESTMENTS:
Includes all investments not specified above, and in particular:
1. Reverse repurchase agreements
2. Derivatives, as defined in Appendix B
Appendix B provides a more detailed description of each investment, which is prohibited, for City
investment.
AUTHORIZED INVESTMENT PERSONNEL
Idle cash management and investment transactions are the responsibility of the Administrative
Services Department. The Administrative Services Department is under the control of the Director
of Administrative Services (Director), as treasurer, who is subject to the direction and supervision of
the City Manager.
The Assistant Directors of Administrative Services, who reports to the Director, are authorized to
make all investment transactions allowed by the Statement of Investment Policy. He or she may
authorize the Senior Financial Analyst/Investments (Analyst) to enter into investments within clearly
specified parameters.
The Investment function is under the supervision of the Assistant Director of Administrative
Services (Assistant). The Assistant is charged with the responsibility to manage the investment
program (portfolio), which includes developing and monitoring the City's cash flow model and
developing long-term revenue and financing strategies and forecasts.
8
The Analyst is subject to the direction and supervision of the Assistant. The Analyst assists the
Assistant, in the purchase and sale of securities. The Analyst also prepares the quarterly report, and
records daily all investment transactions as to the type of investment, amount, yield, and maturity.
Cash flow projections are prepared as needed.
In all circumstances, approval from the Director of Administrative Services is required before selling
securities from the City's portfolio. The Analyst may also transfer no more than a total of $8 million
a day from the City's general account to any one financial institution, without the prior approval of
the Assistant Director of Administrative Services.
No other person has authority to make investment transactions without the written authority of the
Assistant Director of Administrative Services.
USE OF BROKERS AND DEALERS
The Administrative Services Department maintains a list of acceptable dealers. A dealer acts as a
principal in security transactions, selling securities from and buying securities for their own position.
A dealer must have
a) At least three years experience operating with California municipalities;
b) Maintain an inventory of trading securities of at least $10 million; and
c) Be approved by the Assistant Administrative Services Director before being
added to the City's list of approved dealers. In addition, individual traders or
agents representing a dealer:
A dealer will be removed from the list should there develop a history of problems to include: failure
to deliver securities as promised, failure to honor transactions as quoted, or failure to provide
accurate information.
SAFEKEEPING AND CUSTODY
All securities shall be delivered to the City's safekeeping custodian and held in the name of the City
of Palo Alto, with the exception of the following investments:
a) Certificates of deposit, which may be held by the City itself.
b) City shares in pooled investment funds, under contract.
c) Mutual funds
d) Local Agency Investment Fund (LAIF)
POLICY REVIEW AND REPORTING ON INVESTMENTS
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Monthly, the Administrative Services Department will review performance in relation to Council-
adopted Policy. Quarterly, the Department will report to Council on: its performance in comparison
to policy, explain any variances from policy, provide any recommendations for policy changes, and
discuss overall compliance with the City’s Investment Policy. In addition, the Department will
provide Council with:
a) A detailed list of all securities, investments and monies held by the City, and
b) Report on the City’s ability to meet expenditure requirements over the next six months.
Annually, the Administrative Services Department will present a Proposed Statement of Investment
Policy, to include the delegation of investment authority, to the City Council for review during the
annual budget process. All proposed changes in policy must be approved by the Council prior to
implementation.
Adopted by City Council October 22, 1984 Amended by City Council January 26, 1998
Monthly reporting effective January 1985 Amended by City Council June 22, 1998
Amended and Adopted by City Council June 24, 1985 Amended by City Council June 28, 1999
Amended by City Council December 2, 1985 Amended by City Council June 19, 2000
Amended by City Council June 23, 1986 Amended by City Council June 11, 2001
Amended by City Council June 22, 1987 Amended by City Council June 17, 2002
Amended by City Council August 8, 1988 Amended by City Council June 17, 2003
Amended by City Council November 28, 1988 Amended by City Council June 28, 2004
Amended by City Council June 26, 1989 Amended by City Council June 20, 2005
Amended by City Council May 14, 1990 Amended by City Council June 12, 2006
Amended by City Council June 24, 1991 Amended by City Council June 11, 2007
Amended by City Council June 22, 1992 Amended by City Council June 09, 2008
Amended by City Council June 23, 1993 Amended by City Council June 15, 2009
Amended by City Council June 20, 1994 Amended by City Council June 28, 2010
Amended by City Council June 19, 1995 Amended by City Council June 20, 2011
Amended by City Council June 24, 1996 Amended by City Council June 18, 2012
Amended by City Council June 18, 2012 Amended by City Council June 03, 2013
Amended by City Council June 23, 1997
10
APPENDIX A
EXPLANATION OF PERMITTED INVESTMENTS
1. U.S. Government Securities – United States Treasury notes, bonds, bills, or certificates of
indebtedness or those for which the faith and credit of the United States are pledged for the
payment of principal and interest.
2. U.S. Government Agency Securities - U.S. Government Agency Obligations include the
securities of the Federal National Mortgage Association (FNMA), Federal Land Banks
(FLB), Federal Intermediate Credit Banks (FICB), banks for cooperatives, Federal Home
Loan Banks (FHLB), Government National Mortgage Association (GNMA), Federal Home
Loan Mortgage Corporation (FHLMC), Student Loan Marketing Association (SLMA),
Small Business Administration (SBA), Federal Farm Credit (FFC), Federal Agricultural
Mortgage Corporation (FAMC or FMAC), and Tennessee Valley Authority (TVA). Federal
Agency securities are debt obligations that essentially result from lending programs of the
Government. Federal agency securities differ from other types of securities, as well as
among themselves. Their characteristics depend on the issuing agency. It is possible to
distinguish three types of issues: (A) participation certificates (pooled securities), (B)
Certificates of interest (pooled loans), (C) notes, bonds, and debentures. The securities of a
few agencies are explicitly backed by the full faith and credit of the U.S. Government. All
other issues purchased by the City have the de facto backing from the federal government,
and it is highly unlikely that the government would let any agency default on its obligations.
3. Certificates of Deposit - A certificate of deposit (CDs) is a receipt for funds deposited in a
bank, savings bank, or savings and loan association for a specified period of time at a
specified rate of interest. Denominations are $250,000 and up. The first $250,000 of a
certificate of deposit is guaranteed by the Federal Deposit Insurance Corporation (FDIC), if
the deposit is with a bank or savings bank, or the Savings Association Insurance Fund
(SAIF), if the deposit is with a savings and loan. CDs with a face value in excess of
$250,000 can be collateralized by U.S. Government Agency and Treasury Department
securities or first mortgage loans. Government securities must be at least 110 percent of the
face value of the CD collateralized in excess of the first $250,000. The value of first
mortgages must be at least 150 percent of the face value of the CD balance insured in excess
of the first $250,000. Generally, CDs are issued for more than 30 days and the maturity can
be selected by the purchaser.
4. Bankers' Acceptance - A Banker's acceptance (BA) is a negotiable time draft or bill of
exchange drawn on and accepted by a commercial bank. Acceptance of the draft irrevocably
obligates the bank to pay the bearer the face amount of the draft at maturity. BAs are usually
created to finance the import and export of goods, the shipment of goods within the United
States and storage of readily marketable staple commodities. In over 70 years of usage in the
United States, there has been no known instance of principal loss to any investor in BAs. In
addition to the guarantee by the accepting bank, the transaction is identified with a specific
commodity. Warehouse receipts verify that the pledged commodities exist, and, by
11
definition, these commodities are readily marketable. The sale of the underlying goods
generates the necessary funds to liquidate the indebtedness.
BAs enjoy marketability since the Federal Reserve Bank is authorized to buy and sell prime
BAs with maturities of up to nine months. The Federal Reserve Bank enters into repurchase
agreements in the normal course of open market operations with BA dealers.
As are sold at a discount from par. An acceptance is tied to a specific loan transaction;
therefore, the amount and maturity of the acceptance is fixed.
5. Commercial Paper - Commercial paper notes are unsecured promissory notes of industrial
corporations, utilities, and bank holding companies. Interest is discounted from par and
calculated using actual number of days on a 360-day year. The notes are in bearer form,
with maturities up to 270 days selected by the purchaser, and denominations generally start
at $100,000. There is a small secondary market for commercial paper notes and an investor
may sell a note prior to maturity.
Commercial paper notes are backed by unused lines of credit from major banks. Some
issuer's notes are insured, while some are backed by irrevocable letters of credit from major
banks. State law limits a City to investments in United States corporations having assets in
excess of five hundred million dollars with an "A" or higher rating by a nationally
recognized rating service for the issuer's debentures. Cities may not invest more than 25
percent of idle cash in commercial paper.
6. Local Agency Investment Fund Demand Deposit - The Local Agency Investment Fund
LAIF) was established by the State to enable treasurers to place funds in a pool for
investments. The City is limited to an investment of the amount allowed by LAIF (currently
$40 million). LAIF has been particularly beneficial to those jurisdictions with small
portfolios. Palo Alto uses this fund for short-term investment, liquidity, and yield.
7. Repurchase Agreements - A Repurchase Agreement (REPOS) is not a security, but a
contractual arrangement between a financial institution or dealer and an investor. The
agreement normally can run for one or more days. The investor puts up funds for a certain
number of days at a stated yield. In return, the investor takes title to a given block of
securities as collateral. At maturity, the securities are repurchased and the funds repaid, plus
interest. Usually, amounts are $500,000 or more, but some REPOS can be smaller.
8. Money Market Deposit Accounts - Money Market Deposit Accounts are market-sensitive
bank accounts, which are available to depositors at any time, without penalty. The interest
rate is generally comparable to rates on money market mutual funds, though any individual
bank's rate may be higher or lower. These accounts are insured by the Federal Deposit
Insurance Corporation or the Savings Association Insurance Fund.
12
9. Mutual Funds - Mutual funds are shares of beneficial interest issued by diversified
management companies, as defined by section 23701 M of the Revenue and Taxation Code.
To be eligible for investment, these funds must:
a) Attain the highest ranking in the highest letter and numerical rating provided by
not less than two of the three largest nationally recognized rating services; or
b) Have an investment advisor registered with the Securities and Exchange
Commission with not less than five years experience investing in the securities
and obligations, as authorized by subdivisions (a) to (n), inclusive, of Section
53601 of the California Government Code, and with assets under management in
excess of five hundred million dollars; and
c) Invest solely in those securities and obligations authorized by Sections 53601
and 53635 of the California Government Code. Where the Investment Policy of
the City of Palo Alto may be more restrictive than the State Code, the Policy
authorizes investments in mutual funds that shall have minimal investment in
securities otherwise restricted by the City's Policy. Minimal investment is
defined as less than 5 percent of the mutual fund portfolio; and
d) The purchase price of shares of beneficial interest purchased shall not include
any commission that these companies may charge.
e) Have a net asset value of $1.00.
10. Callable Securities and Multi-Step-ups: Callable securities are defined as fixed interest
rate government agency securities that give the issuing agency the option of returning the
invested funds at a specific point in time to the purchaser. Multi-step-ups are government
agency securities in which the interest rate increases ("steps-up") at preset intervals, and
which also have a callable option that allows the issuing agency to return the invested funds
at a preset interval. Callable and multi-step-ups are permitted, provided that:
the potential call dates are known at the time of purchase;
the interest rates at which they “step-up” are known at the time of purchase; and
the entire face value of the security is redeemed at the call date.
13
11. Negotiable Certificates of Deposit (NCD). NCDs are large-dollar-amount, short-term
certificate of deposit. Such certificates are issued by large banks and bought mainly by
corporations and institutional investors. They are payable either to the bearer or to the order
of the depositor, and, being negotiable, they enjoy an active secondary market, where they
trade in round lots of $5 million. Although they can be issued in any denomination from
$100,000 up, the typical amount is $1 million. They have a minimum original maturity of 14
days; most original maturities are under six months. Also called a Jumbo Certificate of
Deposit.
State law prohibits the investment of local agency funds in negotiable certificates of deposit
issued by a state or federal credit union if a member of the legislative body of the local
agency, or any person with investment decision making authority in the administrative,
manager’s, budget, auditor-controller’s, or treasurer’s offices of the local agency also serves
on the board of directors, other credit committee or the supervisory committee of the state or
federal credit union issuing the negotiable certificate of deposit.
12. Medium-Term Corporate Notes: Notes of a maximum of five years maturity issued by
corporations organized and operating with the United States or by depository institutions
licensed by the United States or any state and operating with the United States. According to
California Code Section 53601, “Notes eligible for investment under this subdivision shall
be rated in the rating category of “Double A” or its equivalent or better by a nationally
recognized rating service. Purchase of medium-term notes may not exceed 30 percent of the
agency’s surplus money which may be invested pursuant to this section.”
14
APPENDIX B
EXPLANATION OF PROHIBITED INVESTMENTS
1. Reverse Repurchase Agreements: A Reverse Repurchase Agreement (Reverse REPO) is a
contractual agreement by the investor (e.g. local agency) to post a security it owns as
collateral, and a bank or dealer temporarily exchanges cash for this collateral, for a specific
period of time, at an agreed-upon interest rate. During the period of the agreement, the local
agency may use this cash for any purpose. At maturity, the securities are repurchased from
the bank or dealer, plus interest.
California law contains a number of restrictions on the use of Reverse REPOS by local
agencies.
2. Derivatives: A derivative is a financial instrument created from, or whose value depends on
(is derived from), the value of one or more underlying assets or indices. The term
"derivative" refers to instruments or features, such as collateralized mortgage obligations,
forwards, futures, currency and interest rate swaps, options, caps and floors. Except for
those callable and multi-step-up securities as described under Permitted Investments,
derivatives are prohibited.
Certain derivative products have characteristics which could include high price volatility,
liquid markets, products that are not market-tested, products that are highly leveraged,
products requiring a high degree of sophistication to manage, and products that are difficult
to value.
According to California law, a local agency shall not invest any funds in inverse floaters,
range notes, or interest-only strips that are derived from a pool of mortgages.
15
APPENDIX C
GLOSSARY OF INVESTMENT TERMS
AGENCIES: Federal agency and instrumentality securities.
ASKED: The price at which securities are offered.
BID: The price offered by a buyer of securities (when one sells securities, one asks for a bid).
See “Offer”.
BROKER: A broker brings buyers and sellers together so that he can earn a commission.
COLLATERAL: Securities, evidence of deposit, or other property, which a borrower pledges
to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of
public monies.
COMPREHENSIVE ANNUAL FINANCIAL REPORT (“CAFR”): The official annual
report for the City of Palo Alto. It includes combined financial statements for each individual
fund and account group prepared in conformity with GAAP. It also includes supporting
schedules that are necessary to demonstrate compliance with finance-related legal and
contractual provisions, extensive introductory material, and a detailed statistical section.
COUPON: (a) The annual rate of interest that a bond’s issuer promises to pay the bondholder
on the bond’s face value. (b) A certificate attached to a bond evidencing interest due on a
payment date.
DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and
selling for his own account.
DEBENTURE: A bond secured only by the general credit of the issuer.
DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: (1)
delivery versus payment (DVP); and (2) delivery versus receipt (DVR). DVP is delivery of
securities with an exchange of money for the securities. DVR is delivery of securities with an
exchange of a signed receipt for the securities.
DISCOUNT: The difference between the acquisition cost of a security and its value at maturity
when quoted at lower than face value. A security that sells below original offering price shortly
after sale, is also is considered to be at a discount.
DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued a
discount and that are redeemed at maturity for full face value (e.g., U.S. Treasury Bills).
DIVERSIFICATION: Dividing investment funds among a variety of securities that offer
16
independent returns.
FEDERAL AGRICULTURAL MORTGAGE CORPORATION (“FAMC” or “FMAC”): A
federal agency established in 1988 to provide a secondary market for farm mortgage loans.
Informally called Farmer Mac.
FEDERAL CREDIT AGENCIES: Agencies of the Federal Government that were established to
supply credit to various classes of institutions and individuals (e.g., S&Ls, small business firms,
students, farmers, farm cooperatives, and exporters).
FEDERAL DEPOSIT INSURANCE CORPORATION (“FDIC”): A federal agency that insures
all types of deposits received at an insured bank, including deposits in a checking account,
negotiable order of withdrawal (NOW) account, savings account, money market deposit account
(MMDA) or time deposit such as a certificate of deposit (CD). FDIC insurance covers depositors'
accounts at each insured bank, dollar-for-dollar, including principal and any accrued interest through
the date of the insured bank's closing, up to the insurance limit.
The FDIC does not insure money invested in stocks, bonds, mutual funds, life insurance policies,
annuities or municipal securities, even if these investments are purchased at an insured bank. The
FDIC does not insure U.S. Treasury bills, bonds or notes, but these investments are backed by the
full faith and credit of the United States government.
The standard maximum deposit insurance amount is described as the “SMDIA” in FDIC regulations.
The SMDIA is $250,000 per depositor, per insured bank.
FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is
currently pegged by the Federal Reserve through open-market operations.
FEDERAL HOME LOAN BANKS (“FHLB”): Government-sponsored wholesale banks
(currently 12 regional banks) which lend funds and provide correspondent banking services to
member commercial banks, thrift institutions, credit unions, and insurance companies. The mission
of the FHLBs is to liquefy the housing-related assets of its members, who must purchase stock in
their District Bank.
FEDERAL NATIONAL MORTGAGE ASSOCIATION (“FNMA”): FNMA, like GNMA, was
chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal
corporation working under the auspices of the Department of Housing and Urban Development
(HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie
Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation’s
purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate
mortgages. FNMA’s securities are also highly liquid and are widely accepted. FNMA assumes and
guarantees that all security holders will receive timely payment of principal and interest.
FEDERAL OPEN MARKET COMMITTEE (“FOMC”): The FOMC consists of seven
members of the Federal Reserve Board and five of the 12 Federal Reserve Bank Presidents. The
17
President of the New York Federal Reserve Bank is a permanent member, while the other Presidents
serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines
regarding purchases and sales of government securities in the open market, as a means of
influencing the volume of bank credit and money.
FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and
consisting of a seven-member Board of Governors in Washington, D.C., 12 regional banks, and
about 5,700 commercial banks that are members of the system.
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (“GNMA” or “Ginnie Mae”):
Securities that influence the volume of bank credit that is guaranteed by GNMA and issued by
mortgage bankers, commercial banks, savings and loan associations, and other institutions. A
security holder is protected by the full faith and credit of the U.S. Government. Ginnie Mae
securities are backed by the FHA, VA, or FMHM mortgages. The term “pass-throughs” is often
used to describe Ginnie Maes.
LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a
substantial loss of value. In the money market, a security is said to be liquid if the spread between
bid and asked prices is narrow, and reasonable amount can be done at those quotes.
LOCAL GOVERNMENT AGENCY: A local government agency is any city, county, city and
county, district, or other local governmental body or corporation, including the California State
Universities (CSU) and University of California (UC) systems, K-12 schools and community
colleges empowered to expend public funds.
LOCAL GOVERNMENT INVESTMENT FUND (“LAIF”): Monies from local governmental
units may be remitted to the California State Treasurer for deposit in this special fund for the
purpose of investment.
MARKET VALUE: The price at which a security is trading and could presumably be purchased or
sold.
MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions
between the parties to repurchase-reverse repurchase agreements, that establishes each party’s rights
in the transactions. A master agreement will often specify, among other things, the right of the
buyer (lender) to liquidate the underlying securities in the event of default by the seller (borrower).
MATURITY: The date upon which the principal or stated value of an investment becomes due and
payable.
MONEY MARKET: The market in which short-term debt instruments (e.g., bills, commercial
paper, and bankers’ acceptances) are issued and traded.
OFFER: The price asked by a seller of securities (when one buys securities, one asks for an offer).
See “Asked” and “Bid”.
18
OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities
in the open market by the New York Federal Reserve Bank, as directed by the FOMC in order to
influence the volume of money and credit in the economy. Purchases inject reserves into the bank
system and stimulate growth of money and credit; sales have the opposite effect. Open market
operations are the Federal Reserve’s most important and most flexible monetary policy tool.
PORTFOLIO: A collection of securities that an investor holds.
PRIMARY DEALER: A group of government securities dealers that submit daily reports of
market activity and positions, and monthly financial statements to the Federal Reserve Bank of New
York, and are subject to its informal oversight. Primary dealers include Securities and Exchange
Commission (SEC) -- registered securities broker-dealers, banks, and a few unregulated firms.
PRUDENT INVESTOR RULE: An investment standard cited in the California Government Code
(CGC) Section 53600 et seq. Under this standard, all governing bodies of local agencies or persons
authorized to make investment decisions on behalf of the City are trustees and therefore fiduciaries
subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring,
exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and
diligence under the circumstances then prevailing, including, but not limited to the general economic
conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity
and familiarity with those matters would use in the conduct of funds of a like character and with like
aims, to safeguard the principal and maintain the liquidity needs of the agency.
QUALIFIED PUBLIC DEPOSITORIES: A financial institution that: (1) does not claim
exemption from the payment of any sales, compensating use, or ad valorem taxes under the laws of
this state; (2) has segregated for the benefit of the commission eligible collateral having a value of
not less than its maximum liability; and (3) has been approved by the Public Deposit Protection
Commission to hold public deposits.
RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current
market price.
SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and
valuables of all types and descriptions are held in the bank‘s vaults for protection.
SECONDARY MARKET: A market made for the purchase and sale of outstanding issues
following the initial distribution.
SECURITIES AND EXCHANGE COMMISSION: An agency created by Congress to administer
securities legislation for the purpose of protecting investors in securities transactions.
STRUCTURED NOTES: Notes issued by instrumentalities (e.g., FHLB, FNMA, SLMA) and by
corporations, that have imbedded options (e.g., call features, step-up coupons, floating rate coupons,
derivative-based returns) in their debt structure. The market performance of structured notes is
affected by fluctuating interest rates; the volatility of imbedded options; and shifts in the yield curve.
19
TIME CERTIFICATE OF DEPOSIT: A non-negotiable certificate of deposit, which cannot be
sold prior to maturity.
TREASURY BILLS: A non-interest bearing discount security that is issued by the U.S. Treasury
to finance the national debt. Most T-bills are issued to mature in three months, six months, or one
year.
TREASURY BONDS: Long-term, coupon-bearing U.S. Treasury securities that are issued as
direct obligations of the U.S. Government, and having initial maturities of more than 10 years.
TREASURY NOTES: Medium-term, coupon-bearing U.S. Treasury securities that are issued as
direct obligations of the U.S. Government, and having initial maturities of two to 10 years.
YIELD: The rate of annual income return on an investment, expressed as a percentage.
YIELD-TO-CALL (YTC): The rate of return an investor earns from a bond assuming the bond is
redeemed (called) prior to its nominal maturity date.
YIELD-TO-MATURITY: The current income yield minus any premium above par or plus any
discount from par in purchase price, with the adjustment spread over the period from the date of
purchase to the date of maturity.
ZERO-COUPON SECURITIES: Security that is issued at a discount and makes no periodic
interest payments. The rate of return consists of a gradual accretion of the principal of the security
and is payable at par upon maturity.
City of Palo Alto (ID # 4691)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 6/16/2014
City of Palo Alto Page 1
Summary Title: Enjoy! Catalog Contract
Title: Approval of a Contract with Tandem Creative, Inc. In The Amount of
$90,000 for Graphic Design and Printing for the Quarterly Production of the
Enjoy! Catalog Classes and Activities Guide
From: City Manager
Lead Department: Community Services
RECOMMENDATION
Staff recommends that Council:
1. Approve, and authorize the City Manager to execute, the attached contract with
Tandem Creative, Inc. in the amount of $90,000 for graphic design and printing of the
Community Services Department’s Enjoy! catalog (Attachment A) subject to
appropriation of funds.
2. Authorize the City Manager or his designee to exercise the option to renew the contract
for the second and third years, as applicable, provided the proposed cost of each of the
renewed contracts does not exceed the original contract price of $90,000, adjusted by
the Consumer Price Index for all Urban Consumers (San Francisco - Oakland - San Jose
MSA), the contractor is responsive to the City's needs, and the quality of the
contractor's work is acceptable during the preceding year.
DISCUSSION
Scope of Services Description
The Community Services Department produces the quarterly Enjoy! catalog of classes and
activities as well as an annual Summer Camps and Aquatics guide. The scope of work to be
performed under the contract is for graphic design, formatting, editing and printing of the
Enjoy! catalog (Attachment B).
Summary of Solicitation Process
Enjoy! Catalog Graphic Design/RFP 153620
Proposed Length of Project: 36 months
Number of Proposals Mailed: 5
Total Days to Respond to Proposal: 14
Pre-proposal Meeting Date: None
City of Palo Alto Page 2
Number of Proposals Received: 2
Company Name Location (City, State) Oral interview?
Tandem Creative San Francisco, CA No
FolgerGraphics Hayward, CA No
Range of Proposal Amounts Submitted: $90,000 – $96,590
The RFP process allows the City to negotiate the price of the work upon selection of the
successful firm.
An evaluation committee consisting of Erin Perez, Community Services/Administration, Sharon
Eva, Community Services/Recreation and Natalie Khwaja, Community Services/Customer
Service reviewed the proposals. Zero firms were invited to participate in oral interviews. The
committee carefully reviewed each firm's qualifications and submittal in response to the
criteria identified in the RFP.
The evaluation committee unanimously selected Tandem Creative, Inc. (Tandem). Tandem has
worked on the Enjoy! catalog project for the past six years as well as on other major projects
throughout the City of Palo Alto including Utilities, Administrative Services, Regional Water
Quality Control Plant, Palo Alto Library and the City Manager’s Office.
RESOURCE IMPACT
The Community Services Department Fiscal Year 2015 Proposed budget includes funding to
award this contract, subject to City Council adoption of the Fiscal Year 2015 budget.
Attachments:
Attachment A - S14153620 Enjoy Contract (PDF)
Attachment B - Enjoy Catalog Graphic Design Scope of Services (DOC)
Enjoy Catalog Graphic Design, Editing, Proofing and Formatting
Description and Deadlines
Updated: March 10, 2014
Specifications:
Enjoy Catalog
Quarterly publication (Winter, Spring, Summer, Fall)
Booklet size: 8” x 10 ½” (See Attached Sample)
Average of 56- 64 pages
Front and back covers in color w/ graphics.
Interior black ink plus one color
Vendor will use existing document design from previous designer. OR, can discuss
reformatting catalog.
Page layout and editing consists of approximately 50 hours, on a tight time schedule.
Vendor will be a liaison with City and printer to provide quality control of the product.
City will provide all copy.
Vendor shall provide printer and City with electronic files.
Vendor shall create PDF files for the Enjoy website.
Vendor shall have knowledge of services and programs offered in the Enjoy catalog.
28,000 catalogs to be delivered to Embarcadero Publishing to be distributed in the Palo
Alto Weekly.
2,000 to be delivered to Lucie Stern Community Center for distribution.
Summer Camps and Aquatics Guide
One annual publication
Booklet size: 8” x 10 ½” (See Attached Sample)
Average of 56 pages
Interior black ink plus one color
Front and back covers in color w/ graphics.
Vendor will use existing document design from previous designer.
Page layout and editing consists of approximately 50 hours, on a tight time schedule.
Vendor will be a liaison with City and printer to provide quality control of the product.
City will provide all copy.
Vendor shall provide printer and City with electronic files.
Vendor shall create PDF files (or other suitable formats) for the Enjoy website.
Vendor shall have knowledge of services and programs offered in the Enjoy catalog.
28,000 catalogs to be delivered to Embarcadero Publishing to be distributed in the Palo
Alto Weekly.
2,000 to be delivered to Lucie Stern Community Center for distribution.
Attachment 1: Samples of past Enjoy catalogs
Attachment 2: FALL Enjoy Schedule 2014
CITY OF PALO ALTO OFFICE OF THE CITY CLERK
June 16, 2014
The Honorable City Council
Palo Alto, California
Second Reading: Adoption of a Park Improvement Ordinance for the
Magical Bridge Playground (1st Reading: June 2, 2014 PASSED: 9-0)
Request Council adopt the second reading of this Ordinance.
ATTACHMENTS:
Magical Bridge Park Improvement Ordinance (PDF)
Department Head: Donna Grider, City Clerk
Page 2
140416 dm 00710373
*NOT YET APPROVED*
Ordinance No. ______
Ordinance of the Council of the City of Palo Alto Approving
and Adopting a Plan for Improvements to Mitchell Park
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 therefore.
(b) Mitchell Park is dedicated to park, playground, and recreational space.
(c) The City intends to authorize the construction of certain park
improvements within 0.8 acres of Mitchell Park, referred to a The Magical Bridge
Playground, as shown on the Magical Bridge Landscape Improvement Plan (the “Plan”),
attached as Exhibit “A,” including:
(1) Installation of new inclusive playground and associated equipment;
(2) Installation of new accessible walkway and railings;
(3) Installation of irrigation, landscaping and trees;
(4) Installation of lighting;
(5) Installation of bike racks, benches, picnic tables and other amenities; and
(6) Installation of a prefabricated pedestrian/bike bridge
(d) The Project will be constructed in a manner as to avoid protected trees
and other sensitive natural resources, if any. In addition, the existing park uses will be
restored following the completion of construction of the Project.
(e) The Project is consistent with park and recreation purposes.
(f) The Council desires to approve the Project, described above and as more
specifically described in the attached Plan.
SECTION 2. The Council hereby approves the Plan for the construction of the
improvements at Mitchell Park, 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
Mitchell Park.
140416 dm 00710373
SECTION 3. The Council finds that the project to construct the facilities at
Mitchell Park is subject to the California Environmental Quality Act. A draft mitigated
negative declaration was prepared and circulated on April16, 2014.
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
140416 dm 00710373
Exhibit “A”
The Magical Bridge Landscape Improvement Plan
City of Palo Alto (ID # 4783)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 6/16/2014
City of Palo Alto Page 1
Summary Title: HTSV $200k Request
Title: Council Approval of Amendment No. 6 to Agreement No. C1136231
With The Housing Trust Silicon Valley to Provide a Contribution in the
Amount of $200,000 from the Residential Housing In-Lieu Fund for Fiscal Year
2013/14 to be Expended Through Fiscal Year 2017/18, Authorize the City
Manager to Execute Amendment No. Six with the Housing Trust Silicon
Valley, and Adoption of a Budget Amendment Ordinance of $200,000 from
the Residential Housing In-Lieu Fund
From: City Manager
Lead Department: Planning and Community Environment
Recommendation
Staff recommends that Council:
1. Approve Amendment No. Six to Agreement (Attachment B) with the Housing Trust
Silicon Valley to Provide a Contribution in the Amount of $200,000 from the Residential
Housing Fund for Fiscal Year 2013/14 to be Expended Through Fiscal Year 2017/18;,and
2. Authorize the City Manager to Execute Amendment No. Six with the Housing Trust
Silicon Valley; and
3. Adopt the attached Budget Amendment Ordinance (Attachment A) of $200,000 from
the Residential Housing In-Lieu Fund (Fund 233).
Executive Summary
Council approval of the recommended actions will provide a $200,000 financial contribution to
the Housing Trust Silicon Valley (HTSV), formerly known as the Housing Trust Santa Clara
County, to support activities and efforts to increase affordable housing opportunities. The City
of Palo Alto has provided a total of $950,000 in financial contributions since the inception of the
HTSV in 2000 to increase affordable housing opportunities in Palo Alto. HTSV has invested over
$4.6 million in Palo Alto through its homeless/special needs, multi-family residential loan
programs, and first-time homebuyer assistance program. No General Fund monies are being
used for this housing activity. Only Housing funds comprised of developer fees are used to
City of Palo Alto Page 2
contribute to HTSV and these Housing funds are restricted for the development of affordable
housing and no other purpose.
Background
In 2000, the Housing Trust Silicon Valley was created to provide additional financial resources
to address the County’s affordable housing deficit. The HTSV’s initial funding endowment of
$20 million was met in two years and included contributions from public jurisdictions in the
County, major employers and private foundations. On October 23, 2000, the City Council
approved a contribution of $500,000 from the City’s Residential Housing In-Lieu Fund, with the
provision that the City’s fund be used exclusively for qualifying affordable housing projects
located within Palo Alto. The City provided additional funding in the amount of $150,000 in
2004, and in 2009 and 2010, the City contributed $100,000 each of those years. On December
13, 2010, the City Council approved an allocation of $100,000 from the Residential Housing In-
Lieu Fund for a City contribution to HTSV. On April 23, 2012, the Council approved another
$200,000 contribution to HTSV. HTSV anticipates a higher number of loans at higher amounts
in the upcoming year, based on developer feedback. HTSV will also be awarding higher
amounts for predevelopment loans.
Discussion
The City’s participation in the Housing Trust has increased the available housing funding for a
number of Palo of Alto projects, including its loan of $600,000 for the Palo Alto Housing
Corporation’s acquisition of 2811-2825 Alma St. and $555,000 for the rehabilitation of
Stevenson House. Since the execution of the Agreement with the City, the HTSV has loaned or
committed approximately $4.6 million to non-profit housing developers for various projects in
Palo Alto as shown below.
Project Name
Number of
Units
HTSV
Loan Amount
Opportunity Center 89 $ 650,000
Oak Court Apartments 53 $ 400,000
Fabian Way Senior Housing 56 $ 689,439
Tree House Apartments 35 $ 500,000
801 Alma Family Housing 50 $ 500,000
2811 Alma Street 6 $ 600,000
Stevenson House 120 $ 555,000
Stevenson House (funds
committed) $ 750,000
Total 409 $ 4,644,439
In addition, the HTSV invested close to $111,000 assisting 17 households purchase homes in
Palo Alto through its first-time homebuyer program. Assisted households had an average
income of $58,466, and the average home purchase price was $239,443.
City of Palo Alto Page 3
Since the City has already entered into an agreement with the HTSV and the terms for the use
of the funds are unchanged, the existing Agreement needs only to be amended to reflect the
additional contribution.
Resource Impact
Sufficient fund balance is available in the Residential Housing In-Lieu Fund (Fund 233) for the
contribution of $200,000 as recommended for allocation with the attached Budget Amendment
Ordinance. The $200,000 will be transferred immediately to the HTSV after approval of the
request. No General Fund monies are being used for this housing activity.
Policy Implications
The recommendation furthers Comprehensive Plan policies that support addressing housing
needs on a regional basis and working with outside agencies and other jurisdictions to develop
and implement housing programs.
Environmental Review
This action is not considered a project subject to the California Environmental Quality Act, as it
would not cause a physical change in the environment.
Attachments:
Attachment A: Budget Amendment Ordinance (DOCX)
Attachment B: Amendment #6 to the Agreement (PDF)
Attachment A
ORDINANCE NO. XXXX
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO
AMENDING THE BUDGET FOR FISCAL YEAR 2014 TO
PROVIDE ADDITIONAL APPROPRIATION OF $200,000 IN
THE RESIDENTIAL HOUSING IN-LIEU FEE FUND (FUND
233) FOR THE HOUSING TRUST SILICON VALLEY (HTSV)
AFFORDABLE HOUSING GRANT PROGRAM.
The Council of the City of Palo Alto does ordain as
follows:
SECTION 1. The Council of the City of Palo Alto finds
and determines as follows:
A. Pursuant to the provisions of Section 12 of Article
III of the Charter of the City of Palo Alto, the Council on
June 10, 2013 did adopt a budget for Fiscal Year 2014; and
B. The City’s Housing Reserve Guidelines require that
funds be used to expand, preserve, or improve the supply of
low and moderate housing in the City as defined by the
City’s Comprehensive Plan.
C. The City desires to expand, preserve, or improve
affordable housing for persons and families of low and
moderate income in the City of Palo Alto.
D. A contribution of $200,000 from the Residential
Housing In-Lieu Fee Fund balance will be granted to the
Housing Trust of Silicon Valley to provide financial
assistance for qualifying affordable housing projects
located within the City of Palo Alto.
SECTION 2. The sum of Two Hundred Thousand Dollars is
hereby appropriated to the Housing Trust of Silicon Valley
for affordable housing projects within the City of Palo Alto
and the ending fund balance in the Residential Housing In-
Lieu Fund is decreased by Two Hundred Thousand Dollars.
SECTION 3. As provided in Section 2.04.330 of the Palo
Alto Municipal Code, this ordinance shall become effective
upon adoption.
SECTION 4. The Council of the City of Palo Alto
hereby 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:
ABSTENTIONS:
ABSENT:
ATTEST: APPROVED:
City Clerk Mayor
APPROVED AS TO FORM:
City Manager
City Attorney
Director of Planning and
Community Environment
Director of Administrative
Services
AMENDMENT NO. SIX TO THE AGREEMENT NO C1136231 BETWEEN THE CITY OF PALO ALTO AND
HOUSING TRUST OF SANTA CLARA COUNTY, INC.,
a California Nonprofit Corporation
This Amendment No. Six (“Amendment”) to the Agreement No. C1136231
(“Agreement”) is entered into , by and between the CITY OF PALO ALTO (“CITY”), and HOUSING TRUST SILICON VALLEY (“HTSV”), a California
Nonprofit Corporation, (also formerly known as Housing Trust of Santa Clara County).
RECITALS:
WHEREAS, on May 7, 2001, the Agreement was entered into between the parties regarding the City’s initial contribution of $500,000 to the Housing Trust Fund Endowment of
Santa Clara County; and
WHEREAS, on July 12, 2004, the Agreement was amended to reflect an increase in the amount of the City of Palo Alto’s contribution HTSV by an additional $100,000 to be expended in fiscal year 2004-05 and an additional $50,000 to be expended in fiscal year 2005-06; and
WHEREAS, on April 16, 2007, the City Council approved a time extension allowing for
the expenditure of the City’s contribution of $50,000 made in fiscal year 2005-06 through fiscal year 2009-10; and
WHEREAS, on May 11, 2009, the Agreement was amended to reflect an increase in the
amount of the City of Palo Alto’s contribution HTSV by an additional $100,000 to be expended
through fiscal year 2013-14;
WHEREAS, on February 8, 2010, the Agreement was amended to reflect an increase in
the amount of the City of Palo Alto’s contribution to HTSV by a third $100,000 to be expended
through fiscal year 2013-2014; and
WHEREAS, on December 13, 2010, the Agreement was amended to reflect an increase in the amount of the City of Palo Alto’s contribution HTSV by an additional $100,000 to be
expended through fiscal year 2014/15; and
WHEREAS, on April 23, 2012, the Agreement was amended to reflect an increase in the amount of the City of Palo Alto’s contribution HTSV by an additional $200,000 to be expended through fiscal year 2014/15; and
WHEREAS, the parties wish to amend the Agreement;
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the parties agree:
1
140609 syn 0120427
Attachment B
SECTION 1. Section 2 of the Agreement, entitled “Deposit of City’s Residential
Housing In-Lieu Funds into Endowment Fund” is hereby amended to read as follows:
“City agrees to deposit the sum of $500,000 into the Endowment Fund within thirty (30) days after the mutual execution and delivery of this Agreement. City agreed to deposit an additional sum of $100,000 within thirty (30) days after
mutual execution of this Amendment No. One to the Agreement and, subject to
appropriation by the City Council, and to deposit the sum of $50,000 by no later
than thirty (30) days of the beginning of fiscal year 2005-06. The parties agree that the sum of $100,000 deposited within thirty (30) days after execution of Amendment No. One to the Agreement had to be expended in fiscal year 2004-05
and the $50,000 which was to be deposited within thirty (30) days of the
beginning of fiscal year 2005-06 had to be expended through fiscal year 2009-10.
The second additional sum of $100,000, which was to be deposited within thirty (30) days of beginning of fiscal year 2008-09 shall be expended through fiscal year 2013-14. The third additional sum of $100,000 which was to be deposited
within thirty (30) days of the beginning of the fiscal year 2009-10, shall be
expended through fiscal year 2013-14. City agreed to deposit the fourth
additional sum of $100,000 within thirty (30) days of the beginning of the fiscal year 2010-11 shall be expended through fiscal year 2014-15. City agreed to deposit the fifth additional sum of $200,000 within thirty (30) days of the
beginning of the fiscal year 2011-12 shall be expended through fiscal year 2015-
16. City agrees to deposit the sixth additional sum of $200,000 which will be
deposited within thirty (30) days of the mutual execution of this Amendment No. Six to the Agreement, which shall be expended through fiscal year 2019-2020, and according to paragraph 3.2.2 of the Agreement. "
SECTION 2. Except as herein modified, all other provisions of the Agreement,
including any exhibits and subsequent amendments thereto, shall remain in full force and effect.
2
140609 syn 0120427
IN WITNESS WHEREOF: the parties have by their duly authorized representatives
executed this Amendment no. 6 as of the date first above written.
APPROVED AS TO FORM: CITY OF PALO ALTO
Assistant City Attorney City Manager
APPROVED: HOUSING TRUST SILICON VALLEY, a California nonprofit corporation Director of Administrative
Services
By: Name:
Director of Planning and Title:
Community Environment
By:
Name: Title:
Taxpayer I.D. No. 77-0545135
(Compliance with Corp. Code & 313 is
required if the entity on whose behalf this contract is signed is a corporation. In the
alternative, a certified corporate, resolution
attesting to the signatory authority of the
individual signing in their respective
capacities is acceptable.)
3
140609 syn 0120427
City of Palo Alto (ID # 4700)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 6/16/2014
City of Palo Alto Page 1
Summary Title: NCPA Professional Services Agreement
Title: Adoption of a Resolution Approving a Professional Services Agreement
between the Northern California Power Agency and the Cities of Alameda,
Palo Alto and Santa Clara for Electric Transmission, Generation and
Regulatory Consulting Services for a Total Not to Exceed Amount of $166,669
for the One Year Contract Term
From: City Manager
Lead Department: Utilities
Recommendation
Staff recommends that Council adopt a resolution authorizing the City Manager, or his
designee, to execute the Professional Services Agreement between the Northern California
Power Agency and the Cities of Alameda, Palo Alto and Santa Clara for Electric Transmission,
Generation and Regulatory Consulting Services for a total not to exceed amount of $166,669 for
the one year contract term.
Executive Summary
Since 2003, the Northern California Power Agency (NCPA) has provided contract management
services to the Cities of Palo Alto, Alameda and Santa Clara related to electric transmission
issues affecting the three cities. The three cities (collectively the Bay Area Municipal
Transmission Group, or BAMx) require consulting services unique from other NCPA members,
because of the BAMx members’ location in the Bay Area, an area that has electric transmission
constraints. NCPA has a contract with Flynn Resource Consultants, Inc. (Flynn RCI) to provide
these professional consulting services to BAMx.
The current contract between NCPA and Flynn RCI expires on June 30, 2014 and NCPA has
prepared a new agreement to continue the consulting services for Fiscal Year (FY) 2015. For
consulting agreements executed by NCPA on behalf of one, or a subset of, NCPA members, and
to which the members are not a party, NCPA requires that those members enter into a
Professional Services Agreement with NCPA. The renewal of this Professional Services
Agreement with NCPA (Attachment B) is the subject of this report. The City’s share of the one-
year Flynn RCI contract will cost up to a maximum of $166,669. One of the benefits from this
contract is positioning the BAMx members to critically review transmission projects that will
City of Palo Alto Page 2
result in increases in high voltage transmission charges, which are estimated to increase over
the next eight years from $14.6 million to $19.38 million annually for Palo Alto.
Background
NCPA is a joint powers agency whose members are municipal electric utilities, including the
City. NCPA arranges for delivery of the City’s electric power on the electric transmission system
to the point of interconnection with the City’s distribution system and manages electric
resources that the City jointly owns with other NCPA members.
Following the 2000/2001 California electricity market crisis, the California Independent System
Operator (CAISO) initiated a major redesign of the electricity markets, in which the City
participated with the consulting assistance of Flynn RCI. The Cities of Palo Alto, Alameda, and
Santa Clara identified common interests in advocating for certain market design proposals, and
formed the group referred to as BAMx. Recognizing their need for technical and regulatory
consulting services, the BAMx members considered ways to reduce costs by sharing a
consultant. The options considered included forming a new joint powers agency that would
then retain a consultant; entering into three separate consulting agreements with one
consulting company; or working through NCPA. At the time the members decided that the best
alternative was to ask NCPA to provide the consulting services, thereby reducing administrative
costs and facilitating coordination with other NCPA members with common interests.
Subsequently, in 2003, the BAMx members requested that NCPA provide professional
consulting services related to electric transmission, power generation, regulatory issues, and
electric market design issues affecting the three cities. The wider NCPA membership was not
engaged in the issues of interest to BAMx, so on March 1, 2003 NCPA entered into a consulting
agreement with Flynn RCI to provide these services to the BAMx members.
Since March 2003, Flynn RCI has been representing BAMx in Bay Area electric transmission
expansion planning processes, at CAISO proceedings related to electric market design in
California, in filings at the Federal Energy Regulatory Commission, and in other regional electric
transmission planning venues. BAMx, through its consultant, has also advocated for improved
reliability of electricity transmission service in to the Bay Area, has influenced the CAISO’s
electric transmission planning process to provide for more effective stakeholder participation,
and has persuaded the CAISO to take on the responsibility of forecasting the rapidly increasing
transmission access charges. BAMx has also had some success in influencing the transmission
interconnection process, thereby lowering the anticipated transmission access charge
increases.
Specific examples of recent activities that have resulted from the ongoing partnership between
BAMx, NCPA and Flynn are listed below:
Critical review of the transmission planning process that resulted in reductions in the
BAMx members’ local capacity resource (LCR) requirements.
Ongoing participation in a CPUC regulatory proceeding questioning the need for a major
$750 million - $1 billion transmission project in southern California. If the transmission
City of Palo Alto Page 3
project is approved, the City of Palo Alto will pay a share of it via transmission charges
imposed for the City’s use of the electric grid.
Development of a transmission cost forecasting model that became the basis for a
CAISO forecasting model. The model provides information on the impacts of future
transmission projects to electric ratepayers.
Discussion
As the current contract expires on June 30, 2014, NCPA staff has prepared a new agreement to
continue the consulting services from Flynn RCI for FY 2015, and this agreement is provided for
information in Attachment C. NCPA also requires that the BAMx members execute a new
Professional Services Agreement for FY 2015, which is the subject of this report and the
attached Resolution.
The Professional Services Agreement between NCPA and the BAMx members (Attachment B)
states that NCPA is performing or providing these services at the request of the BAMx
members, and formalizes NCPA’s role in processing invoices from Flynn RCI and allocating the
monthly charges to each BAMx member. The allocation of charges between the BAMx
members is in proportion to each member’s share of energy delivered in the calendar year prior
to the contract term. For the contract period (July 1, 2014 through June 30, 2015), the City’s
share is 22.0025% based on energy deliveries in calendar year 2013. While the total contract
amount will remain unchanged compared to last year, Palo Alto’s share has gone up slightly due
to changes in energy deliveries in 2013 relative to the other BAMx members. The detailed cost
allocation to the BAMx members is provided in Table 1
Table 1: Contract Cost Allocation
Percentage Flynn Contract NCPA Administrative Fee Total
Alameda 8.4622%63,467$ 635$ 64,101$
Palo Alto 22.0025%165,019$ 1,650$ 166,669$
Santa Clara 69.5353%521,515$ 5,215$ 526,730$
Total 100%750,000$ 7,500$ 757,500$
The agreement also contains provisions that limit NCPA’s liability and that of non-participating
NCPA members, which NCPA requires in all of its agreements.
The value to the City of participating in BAMx is the continued advocacy for fair and equitable
electric market rules, beneficial electric transmission solutions, and effective stakeholder
participation in electric transmission planning processes. BAMx is currently taking a lead role in
advocating for rigorous economic and needs analyses in the CAISO’s latest transmission
planning proceedings to build new transmission to potential renewable electric resource sites in
remote locations. By the CAISO’s own estimations this new transmission could increase the
charge to electric utilities for high voltage transmission access by 30-50% over the next eight
years.
City of Palo Alto Page 4
Resource Impact
The City’s share of the Flynn RCI contract is incorporated into the Electric Fund’s proposed
budget for FY 2015. The Consulting Agreement between NCPA and Flynn RCI (Attachment C)
specifies a not-to-exceed contract amount of $750,000 for FY 2014. NCPA will also charge an
annual fee of $7,500 for monthly billing and contract preparation and review. The City’s share
is 22.0025% of the total cost, up to a maximum of $166,669 for the one-year contract term.
Policy Implication
Entering into this agreement does not create new policy, is consistent with existing policy, and
is consistent with the Utilities Strategic Plan’s focus on system reliability and cost control.
Environmental Review
The Council’s adoption of a resolution authorizing the City Manager to execute the attached
professional services agreement does not require review under the California Environmental
Quality Act, because it does not meet Public Resources Code Section 21065’s definition of a
“project”.
Attachments:
Attachment A: Reso NCPA Agreement for BAMx (PDF)
Attachment B: Draft NCPA - BAMx Professional Services Agreement (PDF)
Attachment C: Draft NCPA - Flynn Agreement (PDF)
ATTACHMENT A
NOT YET APPROVED
Resolution No. _______
Resolution of the Council of the City of Palo Alto Authorizing the City
Manager to Execute the Professional Services Agreement Between the
Northern California Power Agency and the Cities of Alameda, Palo Alto
and Santa Cara For Electric Transmission, Generation and
Regulatory Consulting Services
R E C I T A L S
A. The City of Palo Alto (“City”), a municipal utility and a chartered city, is a
member of the Northern California Power Agency (“NCPA”).
B. In 2003, Palo Alto, along with two other NCPA members the Cities of Alameda
and Santa Clara, formed the Bay Area Municipal Transmission Group (“BAMx”) and requested
that NCPA provide professional consulting services related to electric transmission, power
generation, regulatory issues, and electric market design issues affecting the BAMx members.
C. Since 2003, NCPA has contracted with Flynn Resource Consultants, Inc. (“Flynn
RCI”) to provide these consulting services to the BAMx members.
D. The current contract between NCPA and Flynn RCI expires on June 30, 2014
and NCPA staff has prepared a new agreement to continue Flynn RCI’s consulting services for
Fiscal Year (FY) 2015.
E. For consulting agreements executed by NCPA on behalf of one, or a subset of,
NCPA members, NCPA requires that those members enter into a Professional Services
Agreement with NCPA.
F. The Professional Services Agreement between the BAMx members and NCPA
specifies the terms and conditions under which NCPA will procure the requested professional
consulting services from Flynn RCI and allocate charges between the BAMx members.
The Council of the City of Palo Alto RESOLVES as follows:
SECTION 1. The Council authorizes the City Manager, or his designee, to execute
the Professional Services Agreement between the Northern California Power Agency and the
Cities of Alameda, Palo Alto and Santa Clara for Electric Transmission, Generation, and
Regulatory Consulting services, in an amount not to exceed $166,669 for the one year contract
term.
SECTION 2. The Council finds that funds to cover the City’s share of the Flynn RCI
contract shall be allocated in the Electric Fund’s proposed budget for FY 2015.
140521 jb 6053054
NOT YET APPROVED
SECTION 3. The Council finds that the adoption of this resolution does not require
review under the California Environmental Quality Act, because it does not meet Public
Resources Code Section 21065’s definition of a “project”.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
__________________________ _____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
___________________________ _____________________________
Senior Deputy City Attorney City Manager
_____________________________
Director of Utilities
_____________________________
Director of Administrative Services
140521 jb 6053054
1
BAMx PROFESSIONAL SERVICES AGREEMENT
PROFESSIONAL SERVICES AGREEMENT BETWEEN
NORTHERN CALIFORNIA POWER AGENCY
AND THE CITIES OF ALAMEDA, PALO ALTO AND SANTA CLARA
(THE "BAY AREA MUNICIPAL TRANSMISSION SERVICES AGREEMENT" OR "BAMx
AGREEMENT")
This Professional Services Agreement (“Agreement”) is made by and between the
NORTHERN CALIFORNIA POWER AGENCY (“NCPA”), a joint powers agency and the Cities of
Alameda, Palo Alto and Santa Clara (such cities each being a "Contracting Member" and jointly
referred to as “Contracting Members” or "BAMx Participants"). NCPA and the Contracting
Members are together sometimes referred to herein individually as a “Party” and collectively as
“the Parties.”
This Agreement is made as of July 1, 2014 (the “Effective Date”) in Roseville, California.
Section 1. RECITALS
This Agreement is entered into based on the following facts, among others:
1.1 NCPA is a public agency created by a joint powers agreement established under
California law for the purpose of assisting its members in the efficient use of their common powers.
1.2 Contracting Members are engaged in, among other things, transmitting and
distributing electric power within their respective corporate limits. Contracting Members are also
each a member of NCPA. Contracting Members jointly desire that NCPA provide Contracting
Members with the Services described in this Agreement.
1.3 Article III, section 3 of the “Amended and Restated Northern California Power
Agency Joint Powers Agreement” (as amended and effective January 1, 2008) (hereinafter “JPA”)
entitled “Powers and Functions” provides that "none of the debts, liabilities or obligations of NCPA
shall be the debts, liabilities or obligations of any of the members of NCPA unless assumed in a
particular case by resolution of the governing body of the member to be charged." Notwithstanding
the foregoing, Article V, section 1 of the JPA entitled “General Provisions” provides that “[t]he
governing Commission of NCPA is authorized to procure public liability and other insurance as it
deems advisable to protect NCPA and each of the parties hereto, charging the cost thereof to the
operating costs of NCPA.”
1.4 Contracting Members desire to secure NCPA’s Services under this Agreement in a
manner that balances their interests and the interests of other NCPA members with the ongoing
financial viability and professional responsibilities of NCPA. Accordingly, Contracting Members
desire to secure NCPA’s Services under this Agreement by accepting a limited insurance based
recourse against NCPA, with the option of procuring additional insurance at Contracting Members'
sole expense. By so doing, the Parties thereby ensure that NCPA will substantially limit its risk for
the provision of such Services and allocates risks back to the Contracting Members in the event
NCPA is not adequately insured.
2
BAMx PROFESSIONAL SERVICES AGREEMENT
1.5 The Parties have previously entered into a professional services agreement for this
same purpose dated as of July 1, 2013 (“the Prior Agreement”) the term of which ends on June 30,
2014.
NOW THEREFORE, in consideration of the mutual covenants and promises set forth, NCPA
and Contracting Members agree as follows:
Section 2. DEFINITIONS
Whenever used in this Agreement with initial capitalization, these terms shall have the
following meanings as applicable, whether in the singular or plural:
2.1 “Good Utility Practice” shall mean any of the practices, methods and acts engaged
in or approved by a significant portion of the electric utility industry during the relevant time period,
or any of the practices, methods and acts which, in the exercise of reasonable judgment in light of
the facts known at the time the decision was made, could have been expected to accomplish the
desired result of the lowest reasonable cost consistent with good business practices, reliability,
safety and expedition and the requirements of the Northern American Electric Reliability
Corporation ("NERC") or Western Electric Coordinating Council ("WECC") Good Utility Practice is
not intended to be limited to the optimum practice, method, or act to the exclusion of all others, but
rather to be acceptable practices, methods, or acts generally accepted in the region.
2.2 “NCPA Members” shall mean the signatories to the JPA or those agencies which
have executed an Associate Member Agreement with NCPA.
2.3 “Stranded Costs” shall mean all costs incurred by NCPA in providing Services to
Contracting Members under this Agreement that could not reasonably be avoided by NCPA from
the date it receives a written Notice of Termination. Such costs may include, but not be limited to,
salary and employment costs, rent, utilities, or contracts incurred to provide Services under this
Agreement. In this regard, Contracting Members acknowledge that NCPA will be entering into
professional services agreements with third persons under the terms of this Agreement, and that
sums owing to such third persons may become Stranded Costs upon termination of this
Agreement.
2.4 “Uncontrollable Forces” shall mean any act of God, labor disturbance, act of the
public enemy, war, insurrection, riot, fire, storm, flood, earthquake, explosion, any curtailment,
order, regulation or restriction imposed by governmental, military or lawfully established civilian
authorities or any other cause beyond the reasonable control which could not be avoided through
the exercise of Good Utility Practice.
Section 3. SERVICES TO BE PROVIDED; AUTHORIZED REPRESENTATIVES; STANDARD
OF PERFORMANCE
3.1 This Agreement is entered into by the Parties in order for NCPA to provide services
to Contracting Members for the services described in Exhibit A hereto (“Services”). The Services
3
BAMx PROFESSIONAL SERVICES AGREEMENT
do not include supervision of the performance of any of the third persons with whom contracts are
entered into; such supervision shall be provided by the Contracting Members.
3.2 The following are the Authorized Representatives of the parties for contract
administration purposes under this Agreement:
NCPA:
David Dockham, Dave.Dockham@ncpa.com
Assistant General Manager
Northern California Power Agency
651 Commerce Drive
Roseville, CA 95678
916-781-4207
Fax 916-781-4255
PALO ALTO:
Nicolas Procos, Nicolas.Procos@cityofpaloalto.org
Senior Resource Planner
City of Palo Alto
P.O. Box 10250
Palo Alto, CA 94303650-329-2214
ALAMEDA:
Lindsay Battenberg, Battenberg@alamedamp.com
Energy Resource Analyst
Alameda Municipal Power
2000 Grand Street
P.O. Box H
Alameda, CA 94501-0263
510-814-6412
Fax 510-814-5699
SANTA CLARA:
Joyce Kinnear
Division Manager
1601 Civic Center Dr. # 201
Santa Clara, CA 95050
408-615-6656
Fax 408-261-2717
No Authorized Representative is authorized to amend any provision of this Agreement except
in accordance with Section 12.16.
3.3 Standard of Performance. NCPA will perform the Services using that level of skill
and attention reasonably required to complete the Services in a competent and timely manner.
4
BAMx PROFESSIONAL SERVICES AGREEMENT
3.4 Assignment of Personnel. NCPA shall assign only competent personnel to perform
Services pursuant to this Agreement. In the event that Contracting Members, in their sole
discretion, at any time during the term of this Agreement, jointly desire the reassignment of any
such persons, NCPA shall, immediately upon receiving notice from each Contracting Member of
such desire of the Contracting Members, reassign such person or persons.
3.5 Time. NCPA shall devote such time to the performance of Services pursuant to
this Agreement as may be reasonably necessary to meet the standard of performance provided in
Section 3.3, above and to satisfy NCPA’s obligations hereunder.
Section 4. TERM AND TERMINATION
4.1 Authorization to Perform Services. NCPA is not authorized to perform any Services
or incur any costs whatsoever under the terms of this Agreement until its receipt of a written
resolution and/or other appropriate/applicable authorization from each Contracting Member’s
governing body confirming each Contracting Member’s authority to enter into this Agreement and
confirming that each Contracting Member has allocated funds for and approved contract payments
to NCPA under this Agreement.
4.2 Term. The term of this Agreement shall begin on the Effective Date and shall end
on June 30, 2015.
4.3 Early Termination and Stranded Costs. This Agreement may be terminated by
either NCPA or by the Contracting Members, upon 30 days written notice to all other Parties
(“Notice of Termination”). Provided, however, that a Notice of Termination on behalf of the
Contracting Members shall be executed by each Contracting Member to be effective.
In the event of an early termination, Contracting Members shall pay NCPA for all fees and
costs required under this Agreement through the effective date of their Notice of Termination plus
all Stranded Costs. Upon payment of the above amounts, no Parties shall have any further
obligations under this Agreement except as otherwise set forth in Section 5.7 regarding the survival
of defense and indemnity obligations.
Section 5. INDEMNITY AND INSURANCE
5.1 Limitation of NCPA’s Liability.
5.1.1 Except as provided in this section 5.1, NCPA shall not at any time be liable for
any injury or damage occurring to Contracting Members or any other person or property from any
cause whatsoever arising out of this Agreement.
5.1.2 The provisions of section 5.1.1 shall not apply where the injury or damage
occurring to Contracting Members is caused by the negligence of NCPA or of any employee, agent
or contractor of NCPA; provided that any liability under this subsection is limited to the extent of the
actual coverage and coverage limits of the NCPA insurance policies described in this Section 5.
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BAMx PROFESSIONAL SERVICES AGREEMENT
5.1.3 Notwithstanding Section 5.1.2 above, the Contracting Members agree to
reimburse NCPA, in a timely manner, for all deductibles and/or self-insured retentions payable for
any claim, liability or damage arising out of this Agreement.
5.2 Indemnification of NCPA. Except as specified in Section 5.1.2 above, Contracting
Members shall, at their sole cost and expense, indemnify and hold harmless NCPA and all
associated, affiliated, allied, member and subsidiary entities of NCPA, now existing or hereinafter
created, and their respective officers, boards, commissions, employees, agents, attorneys, and
contractors (hereinafter referred to as “Indemnitees”), from and against any and all liability,
obligation, damages, penalties, claims, liens, costs, charges, losses and expenses (including,
without limitation, reasonable fees and expenses of attorneys, expert witnesses and consultants),
which may be imposed upon, incurred by or be asserted against the Indemnitees arising out of this
Agreement.
5.3 Defense of Indemnitees. In the event any action or proceeding shall be brought
against the Indemnitees by reason of any matter for which the Indemnitees are indemnified
hereunder, Contracting Members shall, upon reasonable prior written notice from any of the
Indemnitees, at Contracting Members' sole cost and expense, resist and defend the same with
legal counsel mutually selected by Indemnitee and the Contracting Members, unless mutual
selection of counsel is expressly prohibited by an applicable insurance policy; provided however,
that neither Indemnitee nor Contracting Members shall admit liability in any such matter or on
behalf of the other without express written consent, which consent shall not be unreasonably
withheld or delayed, nor enter into any compromise or settlement of any claim for which
Indemnitees are indemnified hereunder without prior express written consent. The Contracting
Members' duty to defend shall begin upon receipt of a written notice identifying with specificity the
allegations that give rise to this duty to defend.
5.4 Notice. The Parties shall give each other prompt notice of the making of any claim
or the commencement of any action, suit or other proceeding covered by the provisions of this
Section 5.
5.5 Insurance. During the term of the Agreement and prior to beginning any work
under this Agreement, NCPA shall maintain, or cause to be maintained, in full force and effect, and
at its sole cost and expense, the types and limits of insurance as are annually approved by the
governing Commission of NCPA. The types and limits of insurance that are applicable to this
Agreement are evidenced by list of insurance coverages which is attached hereto as Exhibit C.
NCPA warrants and represents that the types of insurance and coverage limits shown in Exhibit C
are in full force and effect and shall remain so during the term of this Agreement unless NCPA
gives prior written notification (of not less than 15 days) of modification, cancellation or rescission
of such coverage.
5.6 Contracting Members' Acknowledgment of Option to Secure Additional Insurance.
The Contracting Members acknowledge that there are limitations on NCPA’s liability to the
Contracting Members under this Section 5 and that the Contracting Members may need to
purchase additional insurance of their own to cover the additional risks and the potential additional
liabilities they are assuming under this Agreement. Contracting Members agree that they will, with
respect to any additional insurance they obtain or which is otherwise available to Contracting
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BAMx PROFESSIONAL SERVICES AGREEMENT
Members, cause their insurers to issue an endorsement providing a waiver of subrogation rights as
to Indemnitees.
5.7 Survival of Obligations. The defense and indemnity obligations of Section 5 shall
survive the termination of this Agreement.
Section 6. COMPENSATION
6.1 Charges and Reserves.
6.1.1. Monthly Charges. Charges for the Services provided hereunder shall be the
sum of (a) and (b) below, and shall be billed separately to each BAMx Participant in accordance
with Exhibit B:
(a) Six-Hundred-Twenty-Five Dollars ($625) per month for services provided by
NCPA to the BAMx Participants under this Agreement; and
(b) Sixty-Two-Thousand-Five Hundred Dollars ($62,500) per month for services
provided to the BAMx Participants directly by Flynn Resource Consultants
Inc., under the CONSULTING SERVICES AGREEMENT BETWEEN THE
NORTHERN CALIFORNIA POWER AGENCY AND FLYNN RESOURCE
CONSULTANTS INC., dated July 1, 2014.
6.1.2 Security Deposit. Contracting Members shall each maintain on deposit in its
General Operating Reserve Account held at NCPA the sum of Zero Dollars ($0) as security to
NCPA for liabilities NCPA could incur under this Agreement. Contracting Members hereby
authorize NCPA to reserve and commit this sum in its General Operating Reserve Account for the
payment of the aforementioned liabilities should same become necessary. Interest on monies held
by NCPA pursuant to this section shall be credited in accordance with the then standard practices
of NCPA relating to the General Operating Reserve Account.
Section 7. BILLING AND PAYMENT
7.1 Invoices. NCPA shall submit invoices to Contracting Members, not more often than
once a month during the term of this Agreement, for Services performed and reimbursable costs
incurred prior to the invoice date.
7.2 Monthly Payment. Contracting Members shall make monthly payments, based on
invoices received, for Services performed, and for authorized reimbursable costs incurred.
Contracting Members shall have thirty (30) days from the receipt of an invoice that complies with all
of the requirements above to pay NCPA. Any amount due on a day other than a business day, i.e.,
any day except a Saturday, Sunday, or a Federal Reserve Bank holiday, may be paid on the
following business day.
If all or any portion of a bill is disputed by Contracting Members, the entire amount of the bill
shall be paid when due, and NCPA’S Authorized Representative shall be concurrently provided
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BAMx PROFESSIONAL SERVICES AGREEMENT
written notice of the disputed amount and the basis for the dispute. NCPA shall reimburse any
amount determined to have been incorrectly billed, within ten (10) days after such determination.
Amounts which are not paid when due shall bear interest computed on a daily basis until paid
at the lesser of (i) the per annum prime rate (or reference rate) of the Bank of America NT & SA, or
its successor, then in effect, plus two per cent (2%) or (ii) the maximum rate permitted by law. The
provisions of this Section 7 shall survive expiration of this Agreement until satisfied.
7.3 Contracting Members shall pay for the Services pursuant to this Agreement.
Contracting Members shall not pay any additional sum for any expense or cost whatsoever
incurred by NCPA in rendering Services pursuant to this Agreement. Contracting Members shall
make no payment for any extra, further, or additional service pursuant to this Agreement.
In no event shall NCPA submit any invoice for an amount in excess of the maximum amount
of compensation provided above either for a task or for the entire Agreement, unless the
Agreement is modified prior to the submission of such an invoice by a properly executed change
order or amendment in accordance with this Agreement.
7.4 Hourly Fees. Fees for work performed by NCPA on an hourly basis shall not
exceed the amounts shown on the following fee schedule attached hereto as Exhibit B.
7.5 Reimbursable Expenses. Reimbursable expenses are specified in Exhibit B.
Expenses not listed in Exhibit B are not chargeable to Contracting Members. Reimbursable
expenses are included in the total amount of compensation provided under this Agreement that
shall not be exceeded.
7.6 Payment of Taxes. NCPA is solely responsible for the payment of employment
taxes incurred under this Agreement and any similar federal or state taxes.
7.7 Payment upon Termination. In the event that Contracting Members or NCPA
terminates this Agreement pursuant to Section 4, Contracting Members shall compensate the
NCPA for all outstanding costs and reimbursable expenses incurred for work satisfactorily
completed as of the date of written Notice of Termination. NCPA shall maintain adequate logs and
timesheets in order to verify costs incurred to that date.
7.8 Authorization to Perform Services. NCPA is not authorized to perform any Services
or incur any costs whatsoever under the terms of this Agreement until receipt of authorization from
Contracting Member’s Contract Authorized Representative following receipt of the required
approvals under the terms of this Agreement.
7.9 The addresses of Contracting Members to which invoices shall be sent is:
Jon Abendschein
Senior Resource Planner
City of Palo Alto
P.O. Box 10250
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BAMx PROFESSIONAL SERVICES AGREEMENT
Palo Alto, CA 94303
Fax: 650-326-1507
Alameda Municipal Power
Assistant General Manager
Energy Resource Planning
2000 Grand Street
P.O. Box H
Alameda, CA 94501-0263
Bob Kazlauskas
City of Santa Clara
Attn: Electric Department
1500 Warburton Ave
Santa Clara, CA 95050
Bkazlauskas@svpower.com
408-615-6688
Fax: 408-261-2717
Section 8. STATUS OF NCPA; FACILITIES AND EQUIPMENT
8.1 Independent Contractor. At all times during the term of this Agreement, NCPA shall
be an independent contractor and shall not be an employee of Contracting Members. Contracting
Members shall have the right to control NCPA only insofar as the results of NCPA'S Services
rendered pursuant to this Agreement and assignment of personnel pursuant to Section 3.4;
however, otherwise Contracting Members shall not have the right to control the means by which
NCPA accomplishes Services rendered pursuant to this Agreement. Notwithstanding any other
agency, state, local or federal policy, rule, regulation, law, or ordinance to the contrary, NCPA and
any of its employees, agents, and subcontractors providing Services under this Agreement shall
not qualify for or become entitled to, and hereby agree to waive any and all claims to, any
compensation, benefit, or any incident of employment by Contracting Members, including but not
limited to eligibility to enroll in the California Public Employees Retirement System (PERS) as an
employee of Contracting Member and entitlement to any contribution to be paid by Contracting
Members for employer contributions and/or employee contributions for PERS benefits.
8.2 Facilities and Equipment. The facilities and equipment that may be necessary to
perform the Services required by this Agreement shall be provided as follows: None.
Section 9. UNCONTROLLABLE FORCES
9.1 Obligations of the Parties, other than those to pay money when due, shall be
excused for so long as and to the extent that failure to perform such obligations is due to an
Uncontrollable Force; provided, however, that if either Party is unable to perform due to an
Uncontrollable Force, such Party shall exercise due diligence to remove such inability with
reasonable dispatch. Nothing contained in this Agreement shall be construed as requiring a Party
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BAMx PROFESSIONAL SERVICES AGREEMENT
to settle any strike, lockout, or labor dispute in which it may be involved, or to accept any permit,
certificate, contract, or any other service agreement or authorization necessary for the performance
of this Agreement which contains terms and conditions which a Party determines in its good faith
judgment are unduly burdensome or otherwise unacceptable.
9.2 Each Party shall notify the other promptly, by telephone to the other Party’s
operating personnel and Authorized Representative identified in Section 3.2, upon becoming aware
of any Uncontrollable Force which may adversely affect the performance under this Agreement. A
Party shall additionally provide written notice in accordance with Section 12.8 to the other Party
within 24 hours after providing. Each Party shall notify the other promptly, when an Uncontrollable
Force has been remedied or no longer exists.
Section 10. LEGAL REQUIREMENTS
10.1 Governing Law. The laws of the State of California shall govern this Agreement,
without regard for the choice of law doctrine.
10.2 Compliance with Applicable Laws. NCPA and any subcontractors shall comply with
all laws applicable to the performance of the Services hereunder.
10.3 Other Governmental Regulations. To the extent that this Agreement may be
funded by fiscal assistance from another governmental entity, NCPA and any subcontractors shall
comply with all applicable rules and regulations to which Contracting Member is bound by the
terms of such fiscal assistance program.
10.4 Licenses and Permits. NCPA represents and warrants to Contracting Member that
NCPA and its employees, agents, and any subcontractors have all licenses, permits, qualifications,
and approvals of whatsoever nature that is legally required to practice their respective professions.
NCPA represents and warrants to Contracting Member that NCPA and its employees, agents, any
subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of
this Agreement any licenses, permits, and approvals that are legally required to practice their
respective professions.
10.5 Nondiscrimination and Equal Opportunity. NCPA shall not discriminate, on the
basis of a person’s race, religion, color, national origin, age, physical or mental handicap or
disability, medical condition, marital status, sex, or sexual orientation, against any employee,
applicant for employment, subcontractor, bidder for a subcontract, or participant in, recipient of, or
applicant for any services or programs provided by NCPA under this Agreement. NCPA shall
comply with all applicable federal, state, and local laws, policies, rules, and requirements related to
equal opportunity and nondiscrimination in employment, contracting, and the provision of any
services that are the subject of this Agreement, including but not limited to the satisfaction of any
positive obligations required of NCPA thereby.
NCPA shall include the provisions of this Subsection in any subcontract approved by
Contracting Members' Contract Administrator or this Agreement.
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BAMx PROFESSIONAL SERVICES AGREEMENT
Section 11. KEEPING AND STATUS OF RECORDS.
11.1 Records Created as Part of NCPA’s Performance. All reports, data, maps, models,
charts, studies, surveys, photographs, memoranda, plans, studies, specifications, records, files, or
any other documents or materials, in electronic or any other form, that NCPA prepares or obtains
pursuant to this Agreement and that relate to the matters covered hereunder shall be the property
of the Contracting Members. NCPA hereby agrees to deliver those documents to the Contracting
Members upon termination of the Agreement. It is understood and agreed that the documents and
other materials, including but not limited to those described above, prepared pursuant to this
Agreement are prepared specifically for the Contracting Members and are not necessarily suitable
for any future or other use. Contracting Members and NCPA agree that, until final approval by
Contracting Members, all data, plans, specifications, reports and other documents are confidential
and will not be released to third parties without prior written consent of both Parties, except as may
otherwise be required by applicable law.
11.2 NCPA’s Books and Records. NCPA shall maintain any and all ledgers, books of
account, invoices, vouchers, canceled checks, and other records or documents evidencing or
relating to charges for services or expenditures and disbursements charged to the Contracting
Members under this Agreement for a minimum of three (3) years, or for any longer period required
by law, from the date of final payment to the NCPA to this Agreement.
11.3 Inspection and Audit of Records. Any records or documents that Section 11.2 of
this Agreement requires NCPA to maintain shall be made available for inspection, audit, and/or
copying at any time during regular business hours, upon oral or written request of the Contracting
Member. Under California Government Code Section 8546.7, if the amount of public funds
expended under this Agreement exceeds TEN THOUSAND DOLLARS ($10,000.00), the
Agreement shall be subject to the examination and audit of the State Auditor, at the request of any
Contracting Member or as part of any audit of any of the Contracting Members, for a period of
three (3) years after final payment under the Agreement.
11.4 Confidential Information and Disclosure. During the term of this Agreement, any
Party (“Disclosing Party”) may disclose confidential, proprietary or trade secret information (the
“Information”), to another Party (“Receiving Party”). All such Information made available in a
tangible medium of expression (such as, without limitation, on paper or by means of magnetic
tapes, magnetic disks or other computer media) shall be marked in a prominent location to indicate
that it is the confidential, proprietary and trade secret information of Disclosing Party at the time of
disclosure to Receiving Party. Receiving Party shall hold Disclosing Party’s Information in
confidence and shall take all reasonable steps to prevent any unauthorized possession, use,
copying, transfer or disclosure of such Information. Receiving Party shall not attempt to reverse
engineer or in any manner create any product or information which is similar in appearance to or
based on the Information provided by Disclosing Party. Receiving Party shall not disclose
Disclosing Party’s Information to any person other than Receiving Party’s employees, agents,
contractors and subcontractors who have a need to know in connection with this Agreement.
Receiving Party’s confidentiality obligations hereunder shall not apply to any portion
of Disclosing Party’s Information which:
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BAMx PROFESSIONAL SERVICES AGREEMENT
(a) Has become a matter of public knowledge other than through an act or omission of
Receiving Party;
(b) Has been made known to Receiving Party by a third party in accordance with such
third party’s legal rights without any restriction on disclosure;
(c) Was in the possession of Receiving Party prior to the disclosure of such
Information by Disclosing Party and was not acquired directly or indirectly from the
other Party or any person or entity in a relationship of trust and confidence with the
other Party with respect to such Information;
(d) Receiving Party is required by law to disclose; or
(e) Has been independently developed by Receiving Party from information not
defined as "Information" in this Agreement, as evidenced by Receiving Party's
written records.
Receiving Party shall return or destroy Disclosing Party’s Information (including all copies
thereof) to Disclosing Party promptly upon the earliest of any termination of this Agreement or the
Disclosing Party’s written request. Notwithstanding the foregoing, Receiving Party may retain one
copy of such Information solely for archival purposes, subject to the confidentiality provisions of this
Agreement. The parties understand that each Party is a public entity and is subject to the laws that
may compel either to disclose information about the other’s business.
Section 12. MISCELLANEOUS PROVISIONS
12.1 Attorneys’ Fees. If a Party to this Agreement brings any action, including an action
for declaratory relief, to enforce or interpret the provisions of this Agreement, the prevailing Party
shall be entitled to reasonable attorneys’ fees in addition to any other relief to which that Party may
be entitled. The court may set such fees in the same action or in a separate action brought for that
purpose.
12.2 Venue. In the event that either Party brings any action against the other under this
Agreement, the Parties agree that trial of such action shall be vested exclusively in the state courts
of California in the County of Placer or in the United States District Court for the Eastern District of
California.
12.3 Severability. If any provision of this Agreement shall be determined by a court of
competent jurisdiction to be invalid, void or unenforceable, or if any provision of this Agreement is
rendered invalid or unenforceable by federal or state statute or regulation, but the remaining
portions of the Agreement can be enforced without failure of material consideration to any Party,
then the remaining provisions shall continue in full force and effect. To that end, this Agreement is
declared to be severable. Provided, however, that in the event any provision is declared to be
invalid, void or unenforceable, any Party may terminate this Agreement upon 10 days written notice
given within five (5) days of receipt of notice of final entry of judgment.
12.4 No Implied Waiver of Breach. The waiver of any breach of a specific provision of
this Agreement does not constitute a waiver of any other breach of that term or any other term of
this Agreement.
12.5 Successors and Assigns. The provisions of this Agreement shall inure to the
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benefit of and shall apply to and bind the successors and assigns of the Parties.
12.6 Use of Recycled Products. NCPA shall endeavor to prepare and submit all reports,
written studies and other printed material on recycled paper to the extent it is available at equal or
less cost than virgin paper.
12.7 Conflict of Interest. NCPA shall not employ any Contracting Members' official or
employee in the work performed pursuant to this Agreement. No officer or employee of
Contracting Member shall have any financial interest in this Agreement that would violate California
Government Code Sections 1090 et seq.
12.8 Notices. Unless this Agreement requires otherwise, any notice, demand or request
provided for in this Agreement, or served, given or made shall become effective when delivered in
person, or sent by registered or certified first class mail, to the persons specified below:
NCPA:
David Dockham
Assistant General Manager – Power Management
Northern California Power Agency
651 Commerce Drive
Roseville, CA 95678
With a copy to:
Michael F. Dean
General Counsel, Northern California Power Agency
c/o Meyers Nave
555 Capitol Mall, Suite 1200
Sacramento, CA 95814
PALO ALTO:
Valerie Fong, Utilities Director
City of Palo Alto
P.O. Box 10250
Palo Alto, CA 94303
With a copy to:
Jessica Mullen, Deputy City Attorney
c/o City Attorney’s office
P.O. Box 10250
Palo Alto, CA 94303
ALAMEDA:
Ron Stassi, Interim General Manager
Alameda Municipal Power
2000 Grand Street
P.O. Box H
Alameda, CA 94501-0263
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BAMx PROFESSIONAL SERVICES AGREEMENT
With a copy to:
Janet Kern
Alameda Office of the City Attorney
2263 Santa Clara Avenue, Room 280
Alameda, CA 94501
SANTA CLARA:
Joyce Kinnear, Division Manager
City of Santa Clara
1500 Warburton Ave
Santa Clara, CA 95050
With a copy to:
Lindsay Beavers, Deputy City Attorney
City of Santa Clara
1500 Warburton Ave
Santa Clara, CA 95050
Whenever it is required, permitted, or desired in this Agreement that written notice or demand
be given by any Party to any other Party, such notice or demand may be either personally served
or sent by United States Mail, or facsimile. Notice shall be deemed to have been given when
personally served, when deposited in the United States Mail, certified or registered with postage
prepaid and properly addressed, or when transmitted by facsimile provided however, notices
delivered by facsimile shall only be effective if delivered during regular business hours on a day
that is considered a regular business day for NCPA by the involved Parties.
12.9 Integration; Incorporation. This Agreement, including all the exhibits attached
hereto, represents the entire and integrated agreement between Contracting Members and NCPA
relating to the subject matter of this Agreement, and supersedes all prior negotiations,
representations, or agreements, either written or oral. All exhibits attached hereto are incorporated
by reference herein.
12.10 Dispute Resolution. If any dispute arises between the Parties that cannot be
settled after engaging in good faith negotiations, Contracting Members and NCPA agree to resolve
the dispute in accordance with the following:
12.10.1 Each Party shall designate a senior management or executive level
representative to negotiate any dispute;
12.10.2 The representatives shall attempt, through good faith negotiations, to resolve the
dispute by any means within their authority.
12.10.3 If the issue remains unresolved after sixty (60) days of good faith negotiations,
despite having used their best efforts to do so, either Party may pursue whatever other remedies
may be available to it.
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BAMx PROFESSIONAL SERVICES AGREEMENT
12.10.4 This informal resolution process is not intended to nor shall be construed to
change the time periods for filing a claim or action specified by Government Code § 900, et seq.
12.11 Other Agreements. This Agreement is not intended to modify or change any other
agreement between any of the Parties, individually or collectively. Without limiting the generality of
the foregoing, this Agreement does not amend or extend the Prior Agreement.
12.12 Counterparts. This Agreement may be executed in multiple counterparts, each of
which shall be an original and all of which together shall constitute one agreement.
12.13 Obligations of Contracting Members Joint and Several; No Joint Venture. The
duties, obligations and liabilities of the Contracting Members, including the obligations to make
payments to NCPA, are intended to be joint and several. Provided that nothing contained in this
Agreement shall be construed to create an association, trust, partnership or joint venture or to
impose a trust or partnership duty, obligation or liability on or with regard to the Contracting
Members.
12.14 Effect of Section Headings. Section headings and subheadings appearing in this
Agreement are inserted for convenience only and shall not be construed as interpretation of text.
12.15 Authority of Signatories. The signatories hereby represent that they have been
appropriately authorized to execute this Agreement on behalf of the Party for whom they sign.
12.16 Amendments. The Parties may amend this Agreement only by a writing signed by
all the Parties following each Party’s receipt of written resolution/authorization from their governing
bodies, which resolutions/authorizations shall be condition precedents to any amendments of this
Agreement and shall be attached as exhibits to this Agreement.
The Parties have executed this Agreement as of the Effective Date.
Northern California Power Agency
________________________________
JAMES H. POPE, General Manager
Attest:
________________________________
Assistant Secretary of the Commission
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Approved as to Form:
________________________________
General Counsel
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BAMx PROFESSIONAL SERVICES AGREEMENT
CONTRACTING MEMBERS:
CITY OF ALAMEDA Approved as to Form:
By: ____________________________ By:_______________________________
Its:_____________________________ City Attorney
CITY OF PALO ALTO Approved as to Form:
By: ____________________________ By:_______________________________
Its:_____________________________ City Attorney
CITY OF SANTA CLARA Approved as to Form
By: ____________________________ By:_______________________________
Its:_____________________________ City Attorney
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BAMx PROFESSIONAL SERVICES AGREEMENT
EXHIBIT A
Scope of Services
NCPA shall perform the following Services on behalf Contracting Members:
NCPA will enter into a contract with Flynn Resource Consulting Inc. ("Consultant") on behalf of
Contracting Members. In general Consultant will provide services including monitoring, meeting
participation, coordinating with affected or other participating parties, and, as necessary, preparing
and submitting formal position submittals for the following activities:
1. Grid Planning Activities
CAISO/PG&E annual transmission expansion planning process
Support or oppose specific transmission additions
Greater Bay Area long term studies
CAISO local capacity technical study process
Other regional and sub-regional transmission planning activities
CAISO Tariff and BPM Change Management Process
Generator Interconnection Procedure
Transmission cost allocation
Impacts due to potential generation retirements
Transmission for renewables
CTPG planning process
Tracy to Bay development activities
Integration requirements for renewables
2. CPUC and CEC transmission matters
Integrated Energy Policy Report
Resource adequacy issues
Renewable Portfolio Standard issues
Long Term Procurement issues
Approval of CPCNs for new transmission lines
3. California Market Design Activities
CAISO markets proceedings and implementation matters
Resource Adequacy / Local Capacity/ Flexible Capacity/ Deliverability
LMP congestion and losses incidence and impacts
4. Western Area Power Administration Activities
SMUD/Western balancing authority area footprint, performance and allocation of costs
and effort
Western Markets Development
Western Transmission Development
Western Transmission Infrastructure Program
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BAMx PROFESSIONAL SERVICES AGREEMENT
5. Communicate Regularly with BAMx Members
Client meetings, telephone conferences and written summaries of activities on key
issues.
NCPA will accept invoices from Consultant and transmit them to Contracting Members for their
review, and if acceptable, the Contracting Members will direct payment by NCPA. Such payment
direction shall be provided by each Contracting Member as designated in Section 12.8 of this
agreement, in writing, utilizing appropriate approval forms as shall be developed and/or revised by
NCPA from time to time. An example of such form is included in Exhibit D of this agreement.
NCPA will prepare invoices indicating the share of Consultant's costs to be paid by each
Contracting Member along with the appropriate charges by NCPA for its services; however, as
provided in the Agreement, each Contracting Member is jointly and severally liable for the entirety
of any amounts billed under this Agreement. NCPA will then pay Consultant utilizing Contracting
Members' funds.
Contracting Members will be solely responsible for payment of the Consultant’s invoices, as
well as determining whether or not the professional services have been satisfactorily performed.
The "Services" under this Agreement by NCPA to Contracting Members are limited to the
contracting for services with Consultant and billing/payment function.
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EXHIBIT B
COMPENSATION SCHEDULE AND HOURLY FEES
Compensation for all tasks, including hourly fees and expenses, shall not exceed $750,000.
The hourly and monthly rates and or compensation break down and an estimated amount of
expenses is as follows:
B-1 Monthly Charges for Services provided by NCPA for billing and contract preparation
under this Agreement shall be allocated to each BAMx Participant in proportion to each
BAMx Participant’s proportionate share of energy delivered in CY2013 as derived from the
2014-2015 NCPA Annual Budget, as reflected in Table 1 below. The total charge for these
services shall be Six-Hundred-Twenty-Five Dollars per month.
B-2 Monthly Charges invoiced by Flynn Resource Consultants Inc to NCPA for services
provided to the BAMx Participants under the CONSULTING SERVICES AGREEMENT
BETWEEN THE NORTHERN CALIFORNIA POWER AGENCY AND FLYNN RESOURCE
CONSULTANTS INC., dated July 1, 2014 shall be allocated to each BAMx Participant in
proportion to each BAMx Participant’s proportionate share of energy delivered in CY2013
as derived from the 2014-2015 NCPA Annual Budget, as reflected in Table 1 below.
Compensation to Flynn Resource Consultants Inc. for all tasks, including hourly fees and
expenses, shall not exceed Seven-Hundred and Fifty Thousand Dollars ($750,000). The
hourly rates and or compensation break down and an estimated amount of expenses is as
follows:
Flynn Resource Consultants Inc. hourly rates for services are listed below.
Labor Category Hourly Rate
Principal $270-295 per hour
Managing Consultant $250-270 per hour
Senior Consultant $200-250 per hour
Consultant $170-200 per hour
Associate Consultant $140-170 per hour
Analyst $100-140 per hour
Support Services $60 per hour
Travel, food, and miscellaneous expenses, except automobile mileage, associated with the
provision of services hereunder shall be billed at cost. Automobile mileage will be billed at
the rate approved by the Internal Revenue Service.
For any month in which specialized modeling software is used to perform services under
this agreement, the following charges shall apply:
Power flow modeling - $250/month
Short circuit modeling – $775/month
OASIS Data - $1,000/month
Market modeling - $3,850/month
20
BAMx PROFESSIONAL SERVICES AGREEMENT
TABLE 1 Proportionate Share of Energy Delivered
MWH % Share
Alameda Municipal Power 379,307 8.462%
Palo Alto 986,236 22.002%
Silicon Valley Power 3,116,845 69.535%
4,482,387 100.000%
21
BAMx PROFESSIONAL SERVICES AGREEMENT
EXHIBIT C
Insurance Maintained by NCPA
WORKERS’ COMPENSATION INSURANCE $1,000,000
EXCESS LIABILITY INSURANCE $35,000,000
AUTOMOBILE INSURANCE $1,000,000
ERRORS & OMISSIONS INSURANCE $10,000,000
22
BAMx PROFESSIONAL SERVICES AGREEMENT
EXHIBIT D
Bay Area Municipal Transmission Services Agreement (BAMX)
Participants Transmittal
Payment Voucher
For the Period: _________________
To: Northern California Power Agency VIA PDF EMAIL
651 Commerce Drive
Roseville, California 95678
Attention: Accounts Payable (*AcctsPayable@ncpa.com)
From: Contracting Members – The Cities of Alameda, Palo Alto and Santa Clara (such
Cities each being a "Contracting Member" and jointly referred to as “Contracting
Members” or "BAMx Participants")
I the undersigned hereby certify that I am authorized to approve payment of the ATTACHED billing
statement and or invoice(s) and do hereby approve payment thereof by the Billing Agent (Northern
California Power Agency) as indicated below:
For City of Alameda: _____________________________ _______________
Name Date
No exceptions.
With the deduction of the following exceptions:
For City of Palo Alto: _____________________________ _______________
Name Date
No exceptions.
With the deduction of the following exceptions:
For City of Santa Clara: ___________________________ _______________
(Silicon Valley Power) Name Date
No exceptions:
With the deduction of the following exceptions:
Attachment(s)
1424737.1
2272834.2
CONSULTING SERVICES AGREEMENT BETWEEN
THE NORTHERN CALIFORNIA POWER AGENCY AND
FLYNN RESOURCE CONSULTANTS INC.
This agreement for consulting services (“Agreement”) is entered into on July 1, 2014 (the “Effective
Date”) between the NORTHERN CALIFORNIA POWER AGENCY, a public joint powers agency, with
offices located at 651 Commerce Drive, Roseville, CA, 95678-6420 (“Agency”) and Flynn Resource
Consultants Inc., (“Consultant”) (together sometimes referred to as the “Parties”).
Section 1. SERVICES. In accordance with the terms and conditions set forth in this Agreement,
Consultant agrees to perform all services described in the Scope of Work attached as Exhibit A. In the
event of a conflict in or inconsistency between the terms of this Agreement and Exhibit A, this Agreement
shall prevail.
1.1 BAMX Members. NCPA is entering into this agreement with Consultant at the request of
certain of its members, the cities of Alameda, Palo Alto and Santa Clara (the BAMx
members), so that NCPA may provide professional consulting services related to electric
transmission, power generation, regulatory issues, and electric market design issues
affecting the BAMx members. NCPA's provision of these services is further addressed in
the 'Professional Services Agreement Between Northern California Power Agency and the
Cities of Alameda, Palo Alto and Santa Clara (the "Bay Area Municipal Transmission
Services Agreement" or "BAMx Agreement").
1.2 Term of Services. This Agreement shall begin on the Effective Date and shall end when
Consultant completes the work described in Exhibit A, or on June 30, 2015, whichever is
shorter, unless the term of the Agreement is otherwise terminated or modified, as provided
for herein.
1.3 Standard of Performance. Consultant shall diligently perform all services required in
connection with this Agreement in the manner and according to the standards observed by
a competent practitioner of the profession in which Consultant is engaged in the
geographical area in which Consultant practices its profession.
1.4 Assignment of Personnel. Consultant shall assign only competent personnel to perform
services in connection with this Agreement.
1.5 Termination. Agency may cancel this Agreement, after consultation with BAMx
Representatives as defined by Exhibit A, at any time and without cause upon written
notification to Consultant. In the event of termination, Consultant shall be entitled to
compensation for services satisfactorily completed as of the date of written notice of
termination; Agency, however, may condition payment of such compensation upon
Consultant delivering to Agency documents and records identified in Section 8.1 of this
Agreement.
Section 2. COMPENSATION. Agency hereby agrees to pay Consultant an amount NOT TO
EXCEED Seven-Hundred and Fifty Thousand Dollars ($750,000) for all work set forth in Exhibit A, in
accordance with the Consultant’s fee schedule and reimbursable expenses which is attached as Exhibit B,
Consulting Services Agreement between
NORTHERN CALIFORNIA POWER AGENCY and Flynn Resource Consultants Inc. Page 2 of 10
and made a part of this Agreement. In the event of a conflict between this Agreement and Consultant’s
proposal regarding the amount of compensation, this Agreement shall prevail.
2.1 Invoices. Consultant shall submit invoices once a month during the term of this
Agreement, based on the cost for services performed and reimbursable costs incurred
prior to the invoice date to:
Northern California Power Agency
651 Commerce Drive
Roseville, California 95678
Attn: Accounts Payable
2.2 Payment. Agency shall make monthly payments, based on invoices received, for services
satisfactorily performed, and for authorized reimbursable costs incurred.
2.3 Hourly Fees / Reimbursable Expenses. If applicable, fees for work performed by
Consultant on an hourly basis shall not exceed the amounts shown on the fee schedule
attached to this Agreement as Exhibit B. Reimbursable expenses are specified in Exhibit
B.
2.4 Payment of Taxes. Consultant is solely responsible for the payment of employment taxes
incurred under this Agreement and any similar federal or state taxes.
Section 3. INSURANCE REQUIREMENTS. Before beginning any work under this Agreement,
Consultant, at its own cost and expense, shall procure the types and amounts of insurance listed below for
the period covered by the Agreement.
3.1 Workers’ Compensation. If Consultant employs any person, Consultant shall maintain
Statutory Workers’ Compensation Insurance and Employer’s Liability Insurance for any
and all persons employed directly or indirectly by Consultant with limits of not less than
ONE MILLION DOLLARS ($1,000,000.00) per accident.
3.2 Commercial General and Automobile Liability Insurance.
3.2.1 Commercial General Insurance. Consultant shall maintain commercial general
liability insurance for the term of this Agreement, including products liability,
covering any loss or liability, including the cost of defense of any action for bodily
injury, death, personal injury and property damage which may arise out of the
operations of the consultant. The policy shall provide a minimum limit of
$1,000,000 per occurrence/$2,000,000 aggregate.
3.2.2 Automobile Liability. If Consultant owns any automobiles, Consultant shall
maintain automobile liability insurance for the term of this Agreement covering any
loss of liability, including the cost of defense of any action, arising from the
operation, maintenance or use of any vehicle owned by the Consultant, on or off
Agency premises. Consultant shall maintain automobile liability insurance for the
term of this Agreement covering any loss of liability, including the cost of defense
of any action, arising from the operation, maintenance or use of any vehicle not
Consulting Services Agreement between
NORTHERN CALIFORNIA POWER AGENCY and Flynn Resource Consultants Inc. Page 3 of 10
owned by the Consultant, on or off Agency premises. The policy shall provide a
minimum limit of $1,000,000 per each accident. This insurance shall provide
contractual liability covering all motor vehicles and mobile equipment to the extent
coverage may be excluded from general liability insurance.
3.2.3 General Liability/Umbrella Coverage. The coverage amounts set forth above
may be met by a combination of underlying and umbrella policies so long as in
combination the limits equal or exceed those stated.
3.3 Professional Liability Insurance. If Consultant performs design work pursuant to this
Agreement, Consultant shall maintain professional liability insurance for licensed
professionals performing design work in connection with this Agreement in an amount not
less than One Million Dollars ($1,000,000.00) covering the licensed professionals’ errors
and omissions. Any deductible or self-insured retention shall not exceed Two Hundred
Fifty-Thousand Dollars ($250,000.00) per claim.
3.4 All Policies Requirements.
3.4.1 Verification of Coverage. Prior to beginning any work under this Agreement,
Consultant shall, at the sole option of the Agency, provide Agency with (1)
Certification of Insurance that demonstrates compliance with all applicable
insurance provisions contained herein; (2) policy endorsements to the general
liability policy adding the Northern California Power Agency as an Additional
Insured and declaring such insurance primary in regard to work performed
pursuant to this Agreement; or (3) upon request by the Agency, complete copies of
all policies and/or complete copies of all endorsements that demonstrate
compliance with this Section 3.
3.4.2 Notice of Reduction in or Cancellation of Coverage. A certified endorsement
must be attached to all insurance obtained in accordance with this Agreement
stating that coverage shall not be canceled, except after thirty (30) days' prior
written notice by certified mail, return receipt requested, has been given to the
Agency. Consultant shall also provide thirty (30) days’ prior notice to the Agency
by certified mail of any impending reduction in the limits or coverage of any
insurance policies that form a part of this agreement.
3.5 Waiver of Subrogation. Consultant agrees to waive subrogation which any insurer of
Consultant may acquire from Consultant by virtue of the payment of any loss. Consultant
agrees to obtain any endorsement that may be necessary to effect this waiver of
subrogation. The Workers' Compensation policy shall be endorsed with a waiver of
subrogation in favor of Agency for all work performed by Consultant, its employees, agents
and subcontractors.
Section 4. INDEMNIFICATION AND CONSULTANT’S RESPONSIBILITIES.
4.1 Consultant shall to the fullest extent allowed by law, with respect to all services performed
in connection with this Agreement, indemnify, defend and hold harmless the Agency and
Consulting Services Agreement between
NORTHERN CALIFORNIA POWER AGENCY and Flynn Resource Consultants Inc. Page 4 of 10
its officials, commissioners, officers, employees, agents and volunteers from and against
any and all claims that arise out of, pertain to or relate to the negligence, recklessness or
willful misconduct of the Consultant. Consultant will bear all losses, costs, damages,
expense and liability of every kind, nature and description that arise out of, pertain to, or
relate to such Claims, whether directly or indirectly (“Liabilities”). Such obligations to
defend, hold harmless and indemnity the Agency shall not apply to the extent that such
Liabilities are caused by the sole negligence, active negligence, or willful misconduct of the
Agency.
Section 5. STATUS OF CONSULTANT.
5.1 Independent Contractor. At all times during the term of this Agreement, Consultant shall
be an independent contractor and shall not be an employee of Agency. Consultant shall
have no authority, express or implied, to act on behalf of Agency in any capacity
whatsoever as an agent.
Section 6. LEGAL REQUIREMENTS.
6.1 Governing Law. The laws of the State of California shall govern this Agreement.
6.2 Compliance with Applicable Laws. Consultant and any subcontractors shall comply with
all laws applicable to the performance of the work in connection with this Agreement.
6.3 Licenses and Permits. Consultant represents and warrants to Agency that Consultant
and its employees, agents, and any subcontractors have all licenses, permits,
qualifications, and approvals of whatsoever nature that are legally required to practice their
respective professions.
6.4 Nondiscrimination and Equal Opportunity. In compliance with federal, state and local
laws, Consultant shall not discriminate, on the basis of a person’s race, religion, color,
national origin, age, physical or mental handicap or disability, medical condition, marital
status, sex, or sexual orientation, against any employee, applicant for employment,
subcontractor, bidder for a subcontract, or participant in, recipient of, or applicant for any
services or programs provided by Consultant under this Agreement.
Section 7. MODIFICATION.
7.1 Amendments. The Parties may amend this Agreement only by a writing signed by all the
Parties, and after consultation with BAMx Representatives as defined by Exhibit A
7.2 Assignment and Subcontracting. Consultant may not assign this Agreement or any
interest therein without the prior written approval of the Agency. Consultant shall not
subcontract any portion of the performance contemplated and provided for herein, other
than to the subcontractors noted in the proposal, without prior written approval of the
Agency.
Consulting Services Agreement between
NORTHERN CALIFORNIA POWER AGENCY and Flynn Resource Consultants Inc. Page 5 of 10
7.3 Survival. All obligations arising prior to the termination of this Agreement and all
provisions of this Agreement allocating liability between Agency and Consultant shall
survive the termination of this Agreement.
7.4 Options upon Breach by Consultant. If Consultant materially breaches any of the terms
of this Agreement, Agency’s remedies shall include, but not be limited to, the following:
7.4.1 Immediately terminate the Agreement;
7.4.2 Retain the plans, specifications, drawings, reports, design documents, and any
other work product prepared by Consultant in accordance with this Agreement;
Section 8. KEEPING AND STATUS OF RECORDS.
8.1 Records Created as Part of Consultant’s Performance. All reports, data, maps,
models, charts, studies, surveys, photographs, memoranda, plans, studies, specifications,
records, files, or any other documents or materials, in electronic or any other form, that
Consultant prepares or obtains in accordance with this Agreement and that relate to the
matters covered under the terms of this Agreement shall be the property of the Agency.
8.2 Consultant’s Books and Records. Consultant shall maintain any and all records or
documents evidencing or relating to charges for services or expenditures and
disbursements charged to the Agency under this Agreement for a minimum of three (3)
years, or for any longer period required by law, from the date of final payment to the
Consultant to this Agreement.
8.3 Confidential Information and Disclosure. During the term of this Agreement, either
Party (the "Disclosing Party") may disclose confidential, proprietary or trade secret
information (the "Information"), to the other Party (the "Receiving Party"). The Receiving
Party shall hold the Disclosing Party's Information in confidence and shall take all
reasonable steps to prevent any unauthorized possession, use, copying, transfer or
disclosure of such Information. Consultant understands that the Agency is a public agency
and is subject to the laws that may compel it to disclose information about Consultant’s
business.
Section 9. MISCELLANEOUS PROVISIONS.
9.1 Attorneys’ Fees. If a Party to this Agreement brings any action, including an action for
declaratory relief, to enforce or interpret the provision of this Agreement, the prevailing
Party shall be entitled to reasonable attorneys’ fees in addition to any other relief to which
that Party may be entitled. The court may set such fees in the same action or in a
separate action brought for that purpose.
9.2 Venue. In the event that either Party brings any action against the other under this
Agreement, the Parties agree that trial of such action shall be vested exclusively in the
state courts of California in the County of Placer or in the United States District Court for
the Eastern District of California.
Consulting Services Agreement between
NORTHERN CALIFORNIA POWER AGENCY and Flynn Resource Consultants Inc. Page 6 of 10
9.3 Severability. If a court of competent jurisdiction finds or rules that any provision of this
Agreement is invalid, void, or unenforceable, the provisions of this Agreement not so
adjudged shall remain in full force and effect.
9.4 No Implied Waiver of Breach. The waiver of any breach of a specific provision of this
Agreement does not constitute a waiver of any other breach of that term or any other term
of this Agreement.
9.5 Contract Administration. This Agreement shall be administered on behalf of the Agency
by Tony Zimmer, Supervisor of Industry Restructuring and Interconnection Affairs – Power
Management, who shall act as the Agency’s representative. All correspondence shall be
directed to or through the representative.
9.6 Notices. Any written notice to Consultant shall be sent to:
Flynn Resource Consultants Inc.
5440 Edgeview Drive
Discovery Bay, CA 94505-9278
Attn: Doug Boccignone
Any written notice to Agency shall be sent to:
James H. Pope
General Manager
Northern California Power Agency
651 Commerce Drive
Roseville, CA 95678
With a copy to:
Michael F. Dean
General Counsel
Northern California Power Agency
Meyers Nave
555 Capitol Mall, Suite 1200
Sacramento, CA 95814
9.7 Professional Seal. Where applicable in the determination of the Agency, the first page of
a technical report, first page of design specifications, and each page of construction
drawings shall be stamped/sealed and signed by the licensed professional responsible for
the report/design preparation.
9.8 Integration; Incorporation. This Agreement, including all the Exhibits attached hereto,
represents the entire and integrated agreement between Agency and Consultant and
supersedes all prior negotiations, representations, or agreements, either written or oral. All
Exhibits attached hereto are incorporated by reference herein.
Consulting Services Agreement between
NORTHERN CALIFORNIA POWER AGENCY and Flynn Resource Consultants Inc. Page 7 of 10
9.9 Alternative Dispute Resolution. If any dispute arises between the Parties that cannot be
settled after engaging in good faith negotiations, Agency and Consultant agree to resolve
the dispute in accordance with the following:
Each Party will designate a senior management or executive level representative to
negotiate the dispute. Through good faith negotiations, the representatives will attempt to
resolve the dispute by any means within their authority. If dispute remains unresolved after
fifteen (15) days of good faith negotiations, the Parties shall attempt to resolve the
disagreement by mediation through a disinterested third person as mediator selected by
both Parties. Mediation will begin within thirty (30) days of the selection of this
disinterested third party, and will end fifteen (15) days after commencement. The Parties
shall equally bear the costs of any third party in any alternative dispute resolution process.
The alternative dispute resolution process is a material condition to this Agreement and
must be exhausted as an administrative remedy prior to either Party initiating legal action.
This alternative dispute resolution process is not intended to nor shall be construed to
change the time periods for filing a claim or action specified by Government Code § 900,
et. seq.
9.10 Counterparts: This Agreement may be executed in multiple counterparts, each of which
shall be an original and all of which together shall constitute one agreement.
The Parties have executed this Agreement as of the date signed by the Agency.
NORTHERN CALIFORNIA POWER AGENCY CONSULTANT
Date: _______________________ Date: _____________________________
____________________________ ______________________________
JAMES H. POPE, General Manager DOUG BOCCIGNONE, Chief Financial
Officer
Attest:
__________________________
Assistant Secretary of the Commission
Approved as to Form:
____________________________
General Counsel
Consulting Services Agreement between
NORTHERN CALIFORNIA POWER AGENCY and Flynn Resource Consultants Inc. Page 8 of 10
EXHIBIT A
SCOPE OF SERVICES
BAY AREA MUNICIPAL UTILITIES (BAMx)
SCOPE OF SERVICES FOR FY2015
NCPA is entering into this agreement with Flynn Resource Consultants, Inc. (“Consultant”) at the request of
the cities of Alameda, Palo Alto and Santa Clara (the “BAMx Representatives”), so that NCPA may assist
the BAMx Representatives in securing professional consulting services related to electric transmission,
power generation, regulatory issues, and electric market design issues affecting the BAMx
Representatives. NCPA's provision of related billing services is further addressed in the Professional
Services Agreement Between Northern California Power Agency and the Cities of Alameda, Palo Alto and
Santa Clara (the "Bay Area Municipal Transmission Services Agreement" or "BAMx Agreement”).
Each BAMx Representative shall be represented by a Designated BAMx Representative, listed below.
During the Term of this Agreement the Designated BAMx Representatives shall complete the Payment
Voucher attached as Exhibit D to the Bay Area Municipal Transmission Services Agreement to approve
invoices from Consultant prior to NCPA remitting payment for services rendered by Consultant. The
Designated BAMx Representative will also coordinate, as necessary, work related communications, task
orders and invoice matters between and among the BAMx Representatives and Consultant
Designated BAMx Representatives:
Lindsay Battenberg, Alameda Municipal Power
Nicolas Procos, City of Palo Alto Utilities
Joyce Kinnear, Silicon Valley Power
The Designated BAMx Representatives and Consultant intend to pursue the activities listed below during
Fiscal Year 2015. Such activities will include monitoring, meeting participation, coordinating with affected
or other participating parties, and, as necessary, preparing and submitting formal position submittals.
1. Grid Planning Activities
CAISO/PG&E annual transmission expansion planning process
Support or oppose specific transmission additions
Greater Bay Area long term studies
CAISO local capacity technical study process
Other regional and sub-regional transmission planning activities
CAISO Tariff and BPM Change Management Process
Generator Interconnection Procedure
Transmission cost allocation
Impacts due to potential generation retirements
Transmission for renewables
CTPG planning process
Tracy to Bay development activities
Integration requirements for renewables
2. CPUC and CEC transmission matters
Consulting Services Agreement between
NORTHERN CALIFORNIA POWER AGENCY and Flynn Resource Consultants Inc. Page 9 of 10
Integrated Energy Policy Report
Resource adequacy issues
Renewable Portfolio Standard issues
Long Term Procurement issues
Approval of CPCNs for new transmission lines
3. California Market Design Activities
CAISO markets proceedings and implementation matters
Resource Adequacy / Local Capacity/ Flexible Capacity/ Deliverability
LMP congestion and losses incidence and impacts
4. Western Area Power Administration Activities
SMUD/Western balancing authority area footprint, performance and allocation of costs and
effort
Western Markets Development
Western Transmission Development
Western Transmission Infrastructure Program
5. Communicate Regularly with BAMx Representatives
Client meetings, telephone conferences and written summaries of activities on key issues.
Consulting Services Agreement between
NORTHERN CALIFORNIA POWER AGENCY and Flynn Resource Consultants Inc. Page 10 of 10
EXHIBIT B
COMPENSATION SCHEDULE AND HOURLY FEES
Compensation for all tasks, including hourly fees and expenses, shall not exceed Seven-Hundred and Fifty
Thousand Dollars ($750,000). The hourly rates and or compensation break down and an estimated
amount of expenses is as follows:
Consultant hourly rates for the professional services are listed below.
Labor Category Hourly Rate
Principal $270-295 per hour
Managing Consultant $250-270 per hour
Senior Consultant $200-250 per hour
Consultant $170-200 per hour
Associate Consultant $140-170 per hour
Analyst $100-140 per hour
Support Services $60 per hour
Prior to implementing an increase within the Hourly Rate range for any Labor Category, Consultant shall
provide written notice to the Agency and the Designated BAMx Representatives of such change.
Travel, food, and miscellaneous expenses, except automobile mileage, associated with the provision of
services hereunder shall be billed at cost. Automobile mileage will be billed at the rate approved by the
Internal Revenue Service.
For any month in which specialized modeling software is used to perform services under this agreement,
the following charges shall apply:
Power flow modeling - $250/month
Short circuit modeling – $775/month
OASIS Data - $1,000/month
Market modeling - $3,850/month
Specialized software costs that exceed the above amounts may be billed with the prior approval of the
Agency and the Designated BAMx Representative.
NOTE: As a public agency, NCPA shall not reimburse Consultant for costs in excess of those permitted by
the Internal Revenue Service.
2272862.2
City of Palo Alto (ID # 4748)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 6/16/2014
City of Palo Alto Page 1
Summary Title: Agreement Regarding Provision of PAPD School Resource
Officers to PAUSD
Title: Recommendation that Council Authorize Approval of the Agreement
Between the City of Palo Alto and Palo Alto Unified School District for Shared
Funding of Two School Resource Officer Positions
From: City Manager
Lead Department: Police
Recommendation
Staff recommends the City Council approve an agreement between the City of Palo Alto and the Palo
Alto Unified School District (PAUSD) for PAUSD to reimburse the City for the cost of half of two School
Resource Officer (SRO) positions, or one SRO Full Time Equivalent (FTE) position.
Background
School Resource Officers (SROs) work closely with the Palo Alto Unified School District (PAUSD)
administrators in an effort to create a safer environment for both students and staff. Prior to Fiscal Year
(FY) 2011, the Police Department staffed two SRO positions at PAUSD schools. Due to budget
constraints, one SRO position was eliminated as part of the FY 2010 Operating Budget, and PAUSD
agreed to pay half of the cost of the remaining SRO position as part of the FY 2011 Operating Budget to
prevent additional cuts to the SRO program. In the FY 2014 Operating Budget, the PAUSD agreed to pay
half of a second SRO position to restore the program to pre-FY 2010 staffing levels; the attached
contract formally memorializes such agreement for reimbursement. Currently, both SRO positions are
staffed and working in PAUSD schools.
Discussion
PAUSD will be implementing a new “Safety Enhancement Project” and desires to engage the City to
provide two SROs in connection with the Project. Participation in this project, along with regular SRO
responsibilities, will include, but are not limited to, Parent Project recruitment and facilitation; provide
Code Red training to schools within the District; respond to calls for service incidents; teach classes;
handle truancy issues; comply with legal reporting requirements and conduct proactive policing on
campuses.
Resource Impact
The agreement between the City and PAUSD will be effective following City Council approval through
July 2017, with the option to extend for up to 1 year until 2019. The budgeted revenue reimbursement
City of Palo Alto Page 2
from PAUSD for Fiscal Year 2014 is $175,648, which has already been paid by PAUSD. The Fiscal Year
2015 Proposed Budget assumes the reimbursement of half of two SRO positions from PAUSD at a cost of
$189,053. Going forward, the cost will be adjusted to reflect contractual changes in salaries and
benefits as part of the annual budget process, not to exceed $200,000 annually.
Policy implications
This agreement will result in no policy impact.
Environmental Review
This is not a project under the California Environmental Quality Act (CEQA).
Attachments:
Attachment A: Contract CPA and PAUSD for School Resource Officers (PDF)
1
CITY OF PALO ALTO CONTRACT NO. ___________
AGREEMENT BETWEEN THE CITY OF PALO ALTO AND THE PALO ALTO
UNIFIED SCHOOL DISTRICT
FOR PROFESSIONAL SERVICES
This Agreement is entered into on this __ day of June, 2014, (“Agreement”) by and
between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and
the Palo Alto Unified School District, a unified school district, located at 25 Churchill Avenue Palo
Alto, CA 94306-1099 (“PAUSD”).
RECITALS
The following recitals are a substantive portion of this Agreement.
A. PAUSD intends to provide increased safety at its public schools by utilizing two Palo Alto
Police Department School Resource Officers for its Project (“Safety Enhancement Project”)
and desires to engage the City to provide two such officers in connection with the Project
(“Services”).
B. CITY and PALO ALTO POLICE DEPARTMENT represent that its School Resource
Officers have the necessary professional expertise, qualifications, and capability, and all
required licenses and/or certifications to provide the Services.
C. PAUSD in reliance on these representations desires to engage CITY to provide the Services
as more fully described in Exhibit “A”, attached to and made a part of this Agreement.
NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this
Agreement, the parties agree:
AGREEMENT
SECTION 1. SCOPE OF SERVICES. CITY 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 both parties.
SECTION 2. TERM.
The term of this Agreement shall be from the date of its full execution through June 30, 2017, with
the option to extend for up to 1 year until June 30, 2018, unless terminated earlier pursuant to
Section 15 of this Agreement.
SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of
Services under this Agreement. Any Services for which times for performance are not specified in
2
this Agreement shall be commenced and completed by CITY in a reasonably prompt and timely
manner based upon the circumstances and direction communicated to the CITY.
SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CITY for
performance of the Services described in Exhibit “A”, including both payment for professional
services and reimbursable expenses, shall not exceed the cost of half of two officers, equivalent to
one FTE. Such amount shall not exceed $200,000. The City will notify PAUSD each year of the
amount.
CITY shall not receive any compensation for Additional Services performed without the prior
written authorization of PAUSD. Additional Services shall mean any work that is determined by
CITY to be necessary for the proper completion of the Project, but which is not included within the
Scope of Services described in Exhibit “A”.
SECTION 5. INVOICES. In order to request payment, CITY shall submit annual invoices to the
PAUSD describing the services performed and the applicable charges (including an identification
of personnel who performed the services, hourly rates, and reimbursable expenses). If applicable,
the invoice shall also describe the percentage of completion of each task. The information in
CITY’s payment requests shall be subject to verification by PAUSD. CITY shall send all invoices
to the PAUSD address specified in Section 16 below. PAUSD will generally process and pay
invoices within thirty (30) days of receipt.
SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All of the Services shall be
performed by CITY or under CITY’s supervision. CITY 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. CITY 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 CITY 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.
CITY shall retain control over supervision, wages, and other terms and conditions of employment
of the officers providing the Services under this Agreement. The parties acknowledge that such
officers are held to the requirements of the law and CITY policies and procedures. PAUSD agrees
that it shall not have authority to direct the officers’ law enforcement activity. PAUSD shall assist
CITY with evaluation of the officers, however, the CITY shall have the responsibility to evaluate,
manage, and supervise the officers. PAUSD will immediately notify CITY of any concerns
regarding such activity.
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SECTION 7. COMPLIANCE WITH LAWS. CITY 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. CITY 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. INDEPENDENT CONTRACTOR. It is understood and agreed that in performing
the Services under this Agreement CITY, and any person employed by or contracted with CITY 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 PAUSD.
SECTION 9. ASSIGNMENT. The parties agree that the expertise and experience of CITY are
material considerations for this Agreement. CITY shall not assign or transfer any interest in this
Agreement nor the performance of any of CITY’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 10. SUBCONTRACTING.
No Subcontractor: CITY 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.
SECTION 11. PROJECT MANAGEMENT. CITY will assign the Police Department
Investigative Services Division Commander as the Project Manager to have supervisory
responsibility for the performance, progress, and execution of the Services and as the project liaison
to represent CITY 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 PAUSD’s project manager. CITY, at
PAUSD’s request, shall promptly remove personnel who PAUSD 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 PAUSD’s project manager is Katherine Baker, Director of Secondary Education
Palo Alto Unified School District, Palo Alto, CA 94306. The project manager will be CITY’s point
of contact with respect to performance, progress and execution of the Services. PAUSD may
designate an alternate project manager from time to time.
SECTION 12. INDEMNITY.
12.1. The CITY shall protect, indemnify, defend, and hold harmless the DISTRICT, its employees,
agents, and Board members from and against any demands, claims, liability, or expense on account
of suits, verdicts, judgments, costs or claims of any nature or kind arising out of, or in any way
4
connected with, the CITY’s performance or nonperformance under this Agreement, including the
CITY’s operations on, use, management, alteration or control of the DISTRICT’s property under
this Agreement except for any claims or liability, or portions thereof, arising from the concurrent or
sole negligence or intentional malfeasance of the DISTRICT, its directors, officers, employees or
agents.
12.2 The DISTRICT shall protect, indemnify, defend, and hold harmless the CITY, its employees,
agents, and elected officials from and against any demands, claims, liability, or expense on account
of suits, verdicts, judgments, costs or claims of any nature or kind arising out of, or in any way
connected with, the DISTRICT’s performance or nonperformance under this Agreement, including
the DISTRICT’s operations on, use, management, alteration or control of the DISTRICT’s property
under this Agreement except for any claims or liability, or portions thereof, arising from the
concurrent or sole negligence or intentional malfeasance of the CITY, its directors, officers,
employees or agents.
SECTION 13. 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 14. INSURANCE.
14.1 PAUSD, 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 “B”.
PAUSD and its contractors, if any, shall obtain a policy endorsement naming CITY as an
additional insured under any general liability policy or policies.
14.2 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 CITY
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.
14.3 Certificates evidencing such insurance shall be filed with CITY concurrently with the
execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk
Manager and will contain an endorsement stating that the insurance is primary coverage and
will not be canceled, or materially reduced in coverage or limits, by the insurer except after
filing with the Purchasing Manager thirty (30) days' prior written notice of the cancellation
or modification. If the insurer cancels or modifies the insurance and provides less than thirty
(30) days’ notice to PAUSD, PAUSD shall provide the Purchasing Manager written notice
of the cancellation or modification within two (2) business days of the PAUSD’s receipt of
such notice. PAUSD shall be responsible for ensuring that current certificates evidencing
5
the insurance are provided to CITY’s Purchasing Manager during the entire term of this
Agreement.
14.4 The procuring of such required policy or policies of insurance will not be construed to limit
PAUSD’s liability hereunder nor to fulfill the indemnification provisions of this Agreement.
Notwithstanding the policy or policies of insurance, PAUSD 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.
14.5 The CITY, 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 “B”. The
CITY and its contractors, if any, shall obtain a policy endorsement naming DISTRICT as an
additional insured under any general liability policy or policies. The CITY may self-insure
to meet the requirement specified in this Section 14.
14.6 Certificates evidencing such insurance shall be filed with DISTRICT concurrently with the
execution of this Agreement. The certificates will be subject to the approval of DISTRICT’s
Risk Manager and will contain an endorsement stating that the insurance is primary
coverage and will not be canceled, or materially reduced in coverage or limits, by the
insurer except after filing with the Purchasing Manager thirty (30) days' prior written notice
of the cancellation or modification. If the insurer cancels or modifies the insurance and
provides less than thirty (30) days’ notice to CITY, CITY shall provide the Purchasing
Manager written notice of the cancellation or modification within two (2) business days of
the CITY’s receipt of such notice. CITY shall be responsible for ensuring that current
certificates evidencing the insurance are provided to DISTRICT’s Purchasing Manager
during the entire term of this Agreement.
SECTION 15. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES.
15.1 Either party may suspend the performance of the Services, in whole or in part, or terminate
this Agreement, with or without cause, by giving thirty (30) days prior written notice
thereof to the other party. Upon receipt of such notice, CITY will immediately discontinue
its performance of the Services.
15.2 Upon such suspension or termination by either party, CITY will be paid for the Services
rendered or materials delivered to PAUSD in accordance with the scope of services on or
before the effective date (i.e., 30 days after giving notice) of suspension or termination. The
following Sections will survive any expiration or termination of this Agreement: 12, 15.2,
16 and 21.
15.3 No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a
waiver on the part of CITY of any of its rights under this Agreement.
6
SECTION 16. NOTICES.
All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail,
addressed as follows:
To CITY:
ATTN: Office of the City Clerk City of Palo Alto
Post Office Box 10250
Palo Alto, CA 94303
With a copy to the City of Palo Alto Purchasing Manager
To PAUSD:
ATTN: Project Director
Katherine Baker
25 Churchill Avenue
Palo Alto, CA 94306-1099
SECTION 17. CONFLICT OF INTEREST.
17.1 In accepting this Agreement, PAUSD 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.
17.2 Both parties certify that they will comply with all laws applicable to governmental agencies
and related conflicts of interest.
17.3 If the Project Manager determines that PAUSD is a “Consultant” as that term is defined by
the Regulations of the Fair Political Practices Commission, PAUSD 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 18. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section
2.30.510, PAUSD 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. PAUSD acknowledges that it has read and understands the provisions of
Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and
the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510
pertaining to nondiscrimination in employment.
SECTION 19. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO
WASTE. PAUSD 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
7
amended from time to time. PAUSD 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, PAUSD shall comply with the following zero waste requirements:
All printed materials provided by PAUSD t 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 PAUSD 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 PAUSD, at no additional
cost to the City, for reuse or recycling. PAUSD shall provide documentation
from the facility accepting the pallets to verify that pallets are not being
disposed.
SECTION 20. 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. It is further subject to the fiscal provisions of the PAUSD’s
appropriations process. 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 21. MISCELLANEOUS PROVISIONS.
21.1 This Agreement will be governed by the laws of the State of California.
21.2 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.
21.3 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
8
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.
21.4 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.
21.5 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.
21.6 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.
21.7 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.
21.8 If, pursuant to this contract with PAUSD, City shares with PAUSD personal information
as defined in California Civil Code section 1798.81.5(d) about a California resident
(“Personal Information”), PAUSD 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. PAUSD shall not use Personal Information for direct marketing
purposes without City’s express written consent. Similarly, the CITY shall maintain
reasonable and appropriate security procedures to protect personal information
pertaining to PAUSD students.
21.9 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.
//
9
21.10 This Agreement may be signed in multiple counterparts, which shall, when executed by
all the parties, constitute a single binding agreement.
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 PALO ALTO UNIFIED SCHOOL DISTRICT
___________________ __________________________________
Purchasing Manager Chief Business Officer
___________________________
Police Department Representative
APPROVED AS TO FORM:
_______________________
Assistant City Attorney
Attachments:
EXHIBIT “A”: SCOPE OF WORK
EXHIBIT “B”: INSURANCE REQUIREMENTS
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EXHIBIT “A”
SCOPE OF SERVICES
The PAPD/PAUSD School Resource Officer shall perform the following services:
1. Parent Project. The School Resource Officer (SRO) shall facilitate management of
the Parent Project. The SRO shall recruit and register parents for the English and
Spanish Parent Project classes; update / maintain Parent Project official website;
Facilitate Two 12-week English classes; and Facilitate One-Two 12-week Spanish
classes.
2. Code Red Emergency Preparedness. The School Resource Officer (SRO) shall
provide training to public and certain private schools; Meet with school administrators;
schedule and provide Code Red Staff Training to school administrators and teachers;
schedule, prepare, and evaluate Code Red Drills; and respond to school to provide Site-
Security Walkthroughs.
3. Calls for Service. The School Resource Officer (SRO) shall respond to calls for
service, including complete reports / make arrests /citations per incident; provide
criminal legal advice to school administrators in their official capacities; and speak to
truant or offending students.
4. C.O.R.E-Type Requests. The School Resource Officer (SRO) shall teach classes as
requested; appear on multidisciplinary panels; attend career fairs; and attend Exit
Interviews (held at JLS Middle School).
5. Truancy Issues. The School Resource Officer (SRO) shall assist the PAUSD resolve
truancy issues, including by attending Student Attendance Review Board (SARB)
meetings, and Truancy Mediation Meetings with District Attorney; other duties may
include providing information on criminal consequences of truancy; issue criminal
citations in certain cases; meeting with parents of habitual truants; and completing
home visits / welfare checks of truant students.
6. Comply With Legal Reporting Requirements. The School Resource Officer (SRO)
shall comply with legal reporting requirements, including completing the Monthly
Report on the Detention of Minors form for the California Board of State and
Community Corrections, and completing the Annual Survey of Law Enforcement
Facilities.
7. School “Office Hours”. The School Resource Officer (SRO) shall be present at the
school during school hours. The SRO shall be proactive in policing on school
campuses; work with school Campus Security Officers; work with school
administrators regarding school happenings; interact with kids of all campuses during
brunch, lunch, free play, etc.; attend after-suspension, school intake hearings; and assist
with First Aid.
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8. Juvenile Training to New Officers. The School Resource Officer (SRO) shall provide
training regarding juvenile issues to new officers.
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EXHIBIT “B”
INSURANCE REQUIREMENTS
Palo Alto Unified School District (PAUSD) , 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
$2,000,000
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
NO
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: PAUSD, 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. PAUSD MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE.
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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
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, PAUSD 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, PAUSDSHALL 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 (ID # 4824)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 6/16/2014
City of Palo Alto Page 1
Summary Title: Renew On-Call Contracts
Title: Approval of 6 Contract Amendments: (a) Amendment No. 2 to 4Leaf,
Inc. Contract C13149364, Increasing Compensation by $1,500,000 to
$3,000,000; (b) Amendment No. 2 to Kutzmann & Associates, Inc. Contract
C13149368, Increasing Compensation by $363,000 to $726,000; (c)
Amendment No. 2 to Interwest Consulting Group Contract C13149365,
Increasing Compensation by $50,000 to $150,000; (d) Amendment No. 1 to
CSG Consulting Contract C13149366, Increasing Compensation by $50,000 to
$100,000; (e) Amendment No. 1 to TRB & Associates Contract C13149369,
Increasing Compensation by $50,000 to $100,000; and (f) Amendment No. 1
to West Coast Code Consultants Contract C13149367, Increasing
Compensation by $385,000 to $770,000, to Renew Contracts and Amend
Scope of Work Each for a One-Year Term Extension for On-Call Inspection,
Plan Check Services, and Capital Improvement Costs
From: City Manager
Lead Department: Planning and Community Environment
Recommended Motion
Staff recommends that Council consider the following motion:
1. Authorize the City Manager to exercise options to extend the following 6 contracts for a
period of one year, through June 30, 2015: (a) 4Leaf, Inc. Contract C13149364; (b) Kutzmann &
Associates, Inc. Contract C13149368; (c) Interwest Consulting Group Contract C13149365; (d)
CSG Consulting Contract C13149366; (e) TRB & Associates Contract C13149369; and (f) West
Coast Code Consultants Contract C13149367.
2. Authorize the City Manager to execute approval of 6 contract amendments, subject to City
Council approval of the Fiscal Year 2015 Proposed Budget: (a) Amendment No. 2 to 4Leaf, Inc.
Contract C13149364, Increasing Compensation by $1,500,000 to $3,000,000; (b) Amendment
No. 2 to Kutzmann & Associates, Inc. Contract C13149368, Increasing Compensation by
$363,000 to $726,000; (c) Amendment No. 2 to Interwest Consulting Group Contract
C13149365, Increasing Compensation by $50,000 to $150,000; (d) Amendment No. 1 to CSG
Consulting Contract C13149366, Increasing Compensation by $50,000 to $100,000; (e)
City of Palo Alto Page 2
Amendment No. 1 to TRB & Associates Contract C13149369, Increasing Compensation by
$50,000 to $100,000; and (f) Amendment No. 1 to West Coast Code Consultants Contract
C13149367, Increasing Compensation by $385,000 to $770,000.
Recommendation
Staff recommends that Council:
1. Authorize the City Manager to renew and amend on-call development services contract
C13149364 with 4Leaf, Inc. from $1,500,000 to $3,000,000, where capacity increase of
$1,500,000 is anticipated for the additional one-year term extension.
2. Authorize the City Manager to renew and amend on-call development services contract
C13149368 with Kutzmann & Associates from $363,000 to $726,000, where capacity
increase of $363,000 is anticipated for the additional one-year term extension.
3. Authorize the City Manager to renew and amend on-call development services contract
C13149365 with Interwest Consulting Group from $50,000 to $150,000, where capacity
increase of $100,000 is anticipated for the additional one-year term extension.
4. Authorize the City Manager to renew and amend on-call development services contract
C13149366 with CSG Consulting from $50,000 to $100,000, where capacity increase of
$50,000 is anticipated for the additional one-year term extension.
5. Authorize the City Manager to renew and amend on-call development services contract
C13149369 with TRB & Associates from $50,000 to $100,000, where capacity increase of
$50,000 is anticipated for the additional one-year term extension.
6. Authorize the City Manager to renew and amend on-call development services contract
C13149367 with West Coast Code Consultants from $385,000 to $770,000 where
capacity increase of $385,000 is anticipated for the additional one-year term extension.
Background
Development Services utilizes contractors to process permit applications, perform plan reviews,
and conduct inspections in response to the cyclical demands of the construction industry.
Furthermore, contractors with specialty training and skills can be appointed as needed to
accommodate projects that require specialized knowledge or training in a particular field. This
affords the department the ability to quickly change the scale and scope of their contract
support to correspond to the needs at that time while providing high levels of customer service.
The contracts were originally authorized for a period of one year with options to extend for two
additional one-year terms. Increases in contract limits are needed for renewal of the second
year where the contracts have an option to extend agreements for two, one year, additional
terms. With the exception of Interwest Consulting Group contract C13149365 to which an
additional $50,000 will be added, it is anticipated that contract capacity amounts will remain
constant over the prior year, $2,398,000 versus $2,448,000 in total. The additional $50,000 to
Interwest Consulting Group contract C13149365 pertains to Capital Improvement costs
associated with Accela GIS and Blueprint initiatives.
Discussion
City of Palo Alto Page 3
In April, 2013 (Staff Report 3394), the City Council authorized the City Manager to enter into
building and inspection services contracts with six firms to provide on-call services for
Development Services. The combined total capacity of all the contracts was $2.25 million,
although each has a different limit based on the expected need at the time the contracts were
recommended for award by the City Council. Two of these contracts were amended in
February, 2014 to adjust to increased workload demands (Staff Report 4393).
The on-call contracts provide expert service that is efficient, responsive, and cost-effective.
They have also been used to dedicate professional resources to very large projects when
specifically requested and paid for by applicants. Development Services has been relying on
these contracts to provide needed expertise to process permit applications, perform plan
reviews, and conduct inspections since these contracts were established in July 2013. The
department has reexamined the relationship with these contractors, and has renegotiated
contract terms to clarify expectations of provided training, staff management, technologies and
transportation, as well as assistance in the event of an emergency.
The department seeks to exercise the option to extend the contracts for one year, through June
30, 2015. The department will again reexamine the relationship to renegotiate any contract
terms, and will return to Council in June 2015 for 2016 contract extensions.
Resource Impact
The funding for the extension of these on-call contracts has been included in the Fiscal Year
2015 Proposed Budget for Development Services Department subject to City Council approval
on June 16, 2014. The additional contract capacity of $50,000 to Interwest Consulting Group
C13149365 is already included in the adopted CIP budget for CIP project TE-12001,
Development Center Blueprint Tech Enhancements.
Policy Implications
Approval of these contract extensions and amendments will allow Development Services to
continue meeting service delivery goals established as part of the Development Center
Blueprint initiative.
Environmental Review
Approval of these contract extensions and amendments is not a project under CEQA and no
environmental review is required.
Attachments:
Attachement A: C13149364 Amendment 2 4Leaf, Inc (PDF)
Attachement B: C13149365 Amendment 2 Interwest Consulting Group (PDF)
Attachement C: C13149366 Amendment 1 CSG Consultants (PDF)
Attachement D: C13149368 Amendment 2 Kutzmann & Associates, Inc (PDF)
Attachement E: C13149369 Amendment 1 TRB & Associates, Inc (PDF)
Attachement F: C13149367 Amendment 1 West Coast Code1 (PDF)
AMENDMENT NO. 2 TO CONTRACT NO. Cl3149364
BETWEEN THE CITY OF PALO ALTO AND 4LEAF, INC.
This Amendment No. 2 to Contract No. Cl3 l 49364 ("Contract") is entered into 16th
Day of June, 2014, by and between the CITY OF PALO ALTO, a California chartered municipal
corporatfon ("CITY"), and 4LEAF, INC. a California Corporation, located at 2110 Rheem Drive,
Ste. A, Pleasanton, California, 94588, Telephone (925)462-5959 ("CONSULTANT").
RECITALS:
A. The Contract was entered into between the parties for the provision of On-Call
Permit Processing, Building Plan Check, and Building Inspection services; and
B. CITY intends to extend the term and increase the Not to Exceed
Compensation from $1,500,000.00 by $1,500,000.00 to $3,000,000.00 for continuation of services
and additional services as specified in Exhibit "A" Scope of Services ;and
C. The parties wish to amend the Contract;
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and
provisions of this Amendment, the parties agree:
SECTION 1. Section 4 is hereby amended to read as follows:
SECTION 2. TERM.
The term of this Agreement shall be from July 1, 2013 through June 30, 2015 with an option to
extend the agreement for one, one year, additional term, unless terminated earlier pursuant to Section
19 of this Agreement.
SECTION 2. Section 4 is hereby amended to read as follows:
"SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to
CONSULTANT for performance of the Services described in Exhibit "A", including both payment
for professional services and reimbursable expenses, shall not exceed Three Million Dollars
($3,000,000.00). The applicable rates and schedule of payment are set out in Exhibit "C-1", entitled
"HOURLY RATE SCHEDULE," which is attached to and made a part of this Agreement.
Additional Services, if any, shall be authorized in accordance with and subject to the provisions of
Exhibit "C". CONSULTANT shall not receive any compensation for Additional Services performed
without the prior written authorization of CITY. Additional Services shall mean any work that is
determined by CITY to be necessary for the proper completion of the Project, but which is not
included within the Scope of Services described in Exhibit "A"."
1 of7 Revision July 25, 2012
SECTION 3. The following exhibit(s) to the Contract is/are hereby amended to read
as set forth in the attachment(s) to this Amendment, which are incorporated in full by this reference:
a. Exhibit "A" entitled "SCOPE OF SERVICES"
b. Exhibit "C" entitled "COMPENSATION".
SECTION 4. Except as herein modified, all other provisions of the Contract,
including any exhibits and subsequent amendments thereto, shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have by their duly authorized representatives
executed this Amendment on the date first above written.
CITY OF PALO ALTO
City Manager
APPROVED AS TO FORM:
Senior Asst. City Attorney
Attachments:
EXHIBIT "A"
EXHIBIT "C":
SCOPE OF SERVICES
COMPENSATION
2 of7
4LE~
By: 'rr: -
Name: \CE:J i A.! &Ju Cl-ctr!
Title: .ri\(_~ i 0€01(
Revision July 25, 2012
EXHIBIT A
SCOPE OF SERVICES
CONSULT ANT shall provide professional services consisting of Permit Processing, Building Plan
Check, Building and inspection services on an as-needed (on-call) basis.
Permit Processing Services
CONSULTANT shall be responsible for providing permit-technician, clerical and/or administrative
services as requested by the City on an as needed basis.
CONSULT ANT shall provide staff, on an as need basis that shall work on-or off-site at the City's
Development Center under the supervision of the Development Services Director or designee which
may include the Chief Building Official, Inspection Services Supervisor and/or Development Center
Manager with the knowledge, skills and abilities to perform the following functions:
Enter permit and related data into the Accela permit tracking system; research, compile and prepare
various limited reports and presentation graphics; assist the general public at the front counter or by
phone/ e-mail regarding building, planning, engineering and fire permit requirements, application and
permit fees, application filing procedures and processing, and permit status; accept permit and
related applications and collect fees; screen plans and application materials for completeness and for
conformance with City ordinances, standards, policies and guidelines; review application materials
for compliance with conditions of project approval; route plans to other city departments/divisions
for review; approve and issue minor permits; research and respond to public inquiries; build and
maintain positive working relationships with co-workers, City staff and the public using principles of
good customer service; and perform related duties as assigned.
When requested to furnish staff, CONSUL TANT shall provide resumes (including licenses and other
credentials) of all candidates who shall be available to perform Permit Processing services. The City
retains the right to select or reject any or all candidates based on a review of resumes and/or
subsequent interviews.
Building Plan Check Services
CONSULTANT shall be responsible for providing building plan check services as requested by the
City on an as needed basis. Plan check services shall be provided either by supplying staff to work
on site at the City's Development Center under the direction of the Chief Building Official or by
performing plan reviews off site at CONSULTANT'S office when plans are transmitted to
CONSULTANT by the City. The manner in which plan check services will be performed shall be
determined by the City's Chief Building Official. When requested to provide plan check services,
CONSULTANT shall be expected to perform the following services:
3 of7 Revision July 25, 2012
I. Preliminary plan review consultations in CONSULTANT'S office or by telephone/e-mail.
2. Initial plan review of project plans and other related documents submitted in conjunction
with applications for Building Permits to determine compliance with the adopted uniform
codes, applicable laws, regulations and local ordinances. The services shall include, but not
be limited to, review of the following, as applicable to each project: Architectural, Structural,
Civil, Electrical, Mechanical and Plumbing plans, structural calculations, accessibility
compliance, fire and life safety components, geotechnical reports, Green Building and
Energy Code compliance documentation and deferred submittal items.
3. Provide the applicant's designee and the City, a typed list of items needing clarification or
change to achieve conformance with the above regulations.
4. Maintain sufficient communication with the applicant's designee(s), either by telephone/e-
mail, mail or meeting in CONSUL TANT' S office and perform all necessary plan rechecks to
achieve conformance to the regulations.
5. Provide recommendations and acts as liaison to the Chief Building Official, or his designee,
either by mail/ e-mail, telephone or in CONSULTANT'S office, to ensure 'compliance with
Palo Alto's Municipal Code requirements.
6. Perform plan reviews of revisions to plans that have previously been approved for permit
issuance, or perform plan reviews of changes to plans prior to such approval.
7. Attend meetings related to proposed building projects at the request of the Chief Building
Official at locations other than CONSULTANT'S office.
8. Provide City with periodic plan review status reports for all projects assigned by the Chief
Building Official.
When requested to furnish staff, CONSUL TANT shall provide resumes (including licenses and other
credentials) of all candidates who shall be available to perform Building Plan Check services. The
City retains the right to select or reject any or all candidates based on a review of resumes and/or
subsequent interviews.
Building Inspection Services
CONSULTANT shall be responsible for providing building inspection services on an as needed
basis, as requested by the City, to meet workload demands and service delivery goals. The City shall
4 of7 Revision July 25, 2012
use the services of the CONSUL TANT' S firm to provide inspection staff to supplement the City's
regular staff. When requested to provide building inspection services, CONSULT ANT shall perform
the following services:
I. Perform all requested inspections and re-inspections for compliance with City and State
codes and applicable regulations.
2. Coordinate all inspection and re-inspection requests.
3. Confer with the Chief Building Official, building plan check supervisor, and/or Inspection
Services Supervisor on all discretionary decisions or requests for alternate materials or types
of construction.
4. Coordinate with the Chief Building Official and/or Inspection Services Supervisor on all
Certificates of Occupancy to ensure that all applicable City departments and regulatory
agencies have approved the project.
5. Enter all inspection records into the Accela permit tracking system. Maintain all inspection
records for all assigned projects, to be turned over to the City within five working days of
when requested by the City. Records include all correction notices and all documentation
related to design changes.
6. Coordinate inspection activities with any and all third-party inspectors and special inspection
agents retained by owners and/or their contractors.
7. Have CASp certified staff available to the City on an as-needed basis.
8. Participate in and attend weekly Inspection Division staff meetings and training events
sponsored by the City.
When requested to furnish staff, CONSUL TANT shall provide resumes (including licenses and other
credentials) of all candidates who shall be available to perform Building Inspection services. The
City retains the right to select or reject any or all candidates based on a review of resumes and/or
subsequent interviews.
AMENDMENT NO. 2: ADDITIONAL SCOPE
A. CONSULTANT shall be responsible for providing CONSULT ANT's staff with equipment
necessary to perform the services requested by CITY, except that CITY will provide use of a
computer capable of accessing the CITY' s network and use of a CITY landline telephone.
5 of7 Revision July 25, 2012
B. CONSULT ANT shall provide personnel capable of performing a supervisory /managerial
role as necessary to supervise day to day work of CONSULTANT' s staff.
C. CONSULTANT shall ensure, at its sole expense that CONSULTANT's staff maintain
certifications required to perform the services requested by CITY. Training is the
responsibility of CONSUL TANT. CONSULTANT will not charge CITY for training, time
in training, or any expenses related to training unless training is unique to CITY and required
by CITY. CONSULTANT responsibilities under this section include provision of
emergency preparedness training, such as A TC 20 training and SAP certification.
D. CONSULTANT shall make contract personnel and resources available for emergency
response at the same hourly rates and conditions specified in this Agreement.
E. CONSULTANT shall provide personnel capable of reviewing and providing
recommendations to written City inspection guidelines.
6 of7 Revision July 25, 2012
EXHIBIT "C"
COMPENSATION
The CITY agrees to compensate the CONSUL TANT for professional services performed in
accordance with the terms and conditions of this Agreement based on the hourly rate schedule
attached as Exhibit C-1.
The compensation to be paid to CONSULT ANT under this Agreement for all services
described in Exhibit "A" ("Services") and reimbursable expenses shall not exceed
$3,000,000.00. CONSULTANT agrees to complete all Services, including reimbursable
expenses, within this amount. Any work performed or expenses incurred for which payment
would result in a total exceeding the maximum amount of compensation set forth herein shall
be at no cost to the CITY.
AMENDMENT NO. 2: REIMBURSABLE EXPENSES
The administrative, overhead, secretarial time or secretarial overtime, word processing,
photocopying, in-house printing, insurance and other ordinary business expenses are included
within the scope of payment for services and are not reimbursable expenses. CITY shall
reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for
which CONSULTANT shall be reimbursed are:
A. Travel outside the San Francisco Bay area, including transportation and meals, will be
reimbursed at actual cost subject to the City of Palo Alto's policy for reimbursement of travel
and meal expenses for City of Palo Alto employees. CONSULTANT shall ensure that
CONSULTANT' s staff has sufficient transportation to perform the services requested by
CITY within the San Francisco Bay area. CITY will not provide vehicles or transportation,
nor will it reimburse for mileage or meals within the San Francisco Bay area.
All requests for payment of expenses shall be accompanied by appropriate backup information.
Any expense anticipated to be more than $0.00 shall be approved in advance by the CITY's
project manager.
ADDITIONAL SERVICES
The CONSUL TANT shall provide additional services only by advanced, written authorization
from the CITY. The CONSULTANT, atthe CITY's project manager's request, shall submit a
detailed written proposal including a description of the scope of services, schedule, level of
effort, and CONSULTANT' s proposed maximum compensation, including reimbursable
expenses, for such services based on the rates set forth in Exhibit C-1. The additional
services scope, schedule and maximum compensation shall be negotiated and agreed to in
writing by the CITY' s Project Manager and CONSULTANT prior to commencement of the
services. Payment for additional services is subject to all requirements and restrictions in this
Agreement.
7 of7 Revision July 25, 2012
EXHIBIT "C-1"
HOURLY RA TE SCHEDULE
Plan Review Services to be performed off-site at the following rates:
Plan Check Service Fee for 1,, Review and
snbseqnent rechecks
Life Health Safety, 65% of City fee
Structural, ADA
Requirements and Title 24
Energy Requirements
Plan Checks
Plumbing/ 40% of City fee
Mechanical/Electrical Only
Plan Checks
Strnctnral Only 40% of City fee
Plan Checks
Additional Building Department Services
Lead Senior Combination Building Inspector
Senior Combination Building Inspector
Commercial Building Inspector
Residential Building Inspector
Code Enforcement
On-Site Plan Review Engineer
On-Site Non Structural Plans Examiner
Permit Technician
Inspector of Record (including DSA or OSHPD)
Public Works Inspector
Temporary Building Official
Deputy Building Official
CASp Inspection
Hourly overtime charge per inspector
Mileage (for inspections performed within the City)
18
Contract No. C13149364
Hourly rate for ousite and/or
greater than 3 reviews offsite
(with anthorization from Citv)
$110/hour structural
$85/hour non-structural
$85/hour non-structural
$110/hour structural
$105/hour
$95/hour
$85/hour
$80/hour
$80/hour
$100 -11 O/hour
$90/hour
$48/hour
$115/hour
$115/hour
$130/hour
$115/hour
$175/hour
1.5 x hourly rate
IRS Rate + 20%
Professional Services
Rev Nov. I, 2011
AMENDMENT NO. 2 TO CONTRACT NO. C13149365
BETWEEN THE CITY OF PALO ALTO AND
INTERWEST CONSULTING GROUP, INC.
This Amendment No. 2 to Contract No. CB 149365 ("Contract") is entered into June
16, 2014 by and between the CITY OF PALO ALTO, a California chartered mnnicipal corporation
("CITY"), and INTER WEST CONSULTING GROUP, INC., a California corporation, located at
6280 W. Las Positas Boulevard, Suite 220, Pleasanton, California, 94588, Telephone (925)462-1114
("CONSULTANT").
RECITALS:
A. The Contract was entered into between the parties forthe provision of On-Call
Permit Processing, Building Plan Check Services and development of Accela GIS integration ; and
B. CITY intends to extend the term and increase the Not to Exceed
Compensation from $50,000.00 by $100,000.00 to $150,000.00 for continuation of services and
additional services as specified in Exhibit "A" Scope of Services ;and
C. The patiies wish to amend the Contract;
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and
provisions of this Amendment, the parties agree:
SECTION 1. Section 4 is hereby amended to read as follows:
SECTION 2. TERM.
The term of this Agreement shall be from July 1, 2013 through June 30, 2015 with an option to
extend the agreement for one, one year, additional term, unless terminated earlier pursuant to Section
19 of this Agreement.
SECTION 2. Section 4 is hereby amended to read as follows:
"SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to
CONSULTANT for performance of the Services described in Exhibit "A", including both payment
for professional services and reimbursable expenses, shall not exceed One Hundred Fifty Thousand
Dollars ($150,000.00). The applicable rates and schedule of payment are set out in Exhibit "C-1 '',
entitled "HOURLY RA TE SCHEDULE," which is attached to and made a pati of this Agreement.
Additional Services, if any, shall be authorized in accordance with and subject to the provisions of
Exhibit "C". CONSULTANT shall not receive any compensation for Additional Services petformed
without the prior written authorization of CITY. Additional Services shall mean any work that is
·determined by CITY to be necessaiy for the proper completion of the Project, but which is not
included within the Scope of Services described in Exhibit "A''."
I of7 Revision July 25, 2012
SECTION 3. The following exhibit(s) to the Contract is/are hereby amended to read
as set forth in the attachment(s) to this Amendment, which are incorporated in full by this reference:
a. Exhibit "A" entitled "SCOPE OF SERVICES"
b. Exhibit "C" entitled "COlvIPENSATION".
SECTION 4. Except as herein modified, all other provisions of the Contract,
including any exhibits and subsequent amendments thereto, shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have by their duly authorized representatives
executed this Amendment on the date first above written.
CITY OF PALO AL TO
City Manager
APPROVED AS TO FORM:
Senior Asst. City Attorney
Attach men ts:
EXHIBIT "A"
EXHIBIT "C":
SCOPE OF SERVICES
COlvIPENSA TION
INTE~RWEST CONSULTING GROUP,
INC. a
By: (,.'\,./ ~
I
Name: ~oAJ 1£8-tLFJ?.
Title: ;{e_1 1ur.JA;L MAVA-Gz 0'1.
2 of7 Revision July 25, 2012
EXHIBIT A
SCOPE OF SERVICES
CONSULTANT shall provide professional services consisting of Permit Processing and Building
Plan Check services on an as-needed (on-call) basis.
Permit Processing Services
CONSULTANT shall be responsible for providing permit-technician, clerical and/or administrative
services as requested by the City on an as needed basis.
CONSULTANT shall provide staff, on an as need basis that shall work on-or off-site at the City's
Development Center under the supervision of the Development Services Director or designee which
may include the Chief Building Official, Inspection Services Supervisor and/or Development Center
Manager with the knowledge, skills and abilities to perform the following functions:
Enter permit and related data into the Accela permit tracking system; research, compile and prepare
various limited rep01ts and presentation graphics; assist the general public at the front counter or by
phone/e-mail regarding building, planning, engineering and fire permit requirements, application and
permit fees, application filing procedures and processing, and permit status; accept permit and
related applications and collect fees; screen plans and application materials for completeness and for
conformance with City ordinances, standards, policies and guidelines; review application materials
for compliance with conditions of project approval; route plans to other city departments/divisions
for review; approve and issue minor permits; research and respond to public inquiries; build and
maintain positive working relationships with co-workers, City staff and the public using principles of
good customer service; and perform related duties as assigned.
When requested to furnish staff, CONSUL TANT shall provide resumes (including licenses and other
credentials) of all candidates who shall be available to perform Permit Processing services. The City
retains the right to select or reject any or all candidates based on a review of resumes and/or
subsequent interviews.
Building Plan Check Services
CONSULTANT shall be responsible for providing building plan check services as requested by the
City on an as needed basis. Plan check services shall be provided either by supplying staff to work
on site at the City's Development Center under the direction of the Chief Building Official or by
performing plan reviews off site at CONSULTANT'S office when plans are transmitted to
CONSULTANT by the City. The manner in which plan check services will be performed shall be
determined by the City's Chief Building Official. When requested to provide plan check services,
CONSULTANT shall be expected to perform the following services:
1. Preliminary plan review consultations in CONSULTANT'S office or by telephone/e-mail.
3 of7 Revision July 25, 2012
2. Initial plan review of project plans and other related documents submitted in conjunction
with applications for Building Permits to determine compliance with the adopted uniform
codes, applicable laws, regulations and local ordinances. The services shall include, but not
be limited to, review of the following, as applicable to each project: Architectural, Structural,
Civil, Electrical, Mechanical and Plumbing plans, structural calculations, accessibility
compliance, fire and life safety components, geotechnical reports, Green Building and
Energy Code compliance documentation and deferred submittal items.
3. Provide the applicant's designee and the City, a typed list of items needing clarification or
change to achieve conformance with the above regulations.
4. Maintain sufficient communication with the applicant's designee(s), either by telephone/e-
mail, mail or meeting in CONSUL TANT' S office and perform all necessary plan rechecks to
achieve conformance to the regulations.
5. Provide recommendations and acts as liaison to the Chief Building Official, or his designee,
either by mail/e-mail, telephone or in CONSULTANT'S office, to ensure compliance with
Palo Alto's Municipal Code requirements.
6. Perform plan reviews of revisions to plans that have previously been approved for permit
issuance, or perform plan reviews of changes to plans prior to such approval.
7. Attend meetings related to proposed building projects at the request of the Chief Building
Official at locations other than CONSULTANT'S office.
8. Provide City with periodic plan review status reports for all projects assigned by the Chief
Building Official.
When requested to furnish staff, CONSUL TANT shall provide resumes (including licenses and other
credentials) of all candidates who shall be available to perform Building Plan Check services. The
City retains the right to select or reject any or all candidates based on a review ofresumes and/or
subsequent interviews.
AMENDMENT NO 1: ACCELA/GIS INTEGRATION
Consultant shall provide services for the implementation Geographic Information System (GIS)
integration with Accela.
Task #1 -Project Plan Development
CONSULTANT shall utilize formal project management approach to provide this
4 of7 Revision July 25, 2012
service. This shall include the development of a project plan document that includes
the following sections:
• Project Overview
• Project Team and Roles
• Communication Plan
• Project Timeline
• Application Requirements
./ Content -Map layers, data, etc ...
./ Look and Feel
./ Functionality
./ OIS Data/Work Flows
./ Performance
./ Security
./ Client devices
./ Level of Service
• Technology Solution Recommendation -Pros I Cons I Costs/ Recommended
Approach
• Development Plan
• Testing Plan
• Implementation Plan
• Training Plan
As part of developing some of the sections within this document, CONSULT ANT'S
staff will meet regularly with CITY staff. These meeting will occur through a
combination of both onsite and offsite meetings. CONSUL TANT shall meet on-site as
often as possible. However, the nature of the work shall dictate how much time is
needed onsite.
Task #2 -Development of Accela GIS Integration
After selection of the Technology Solution that best meets the project requirements,
CONSULTANT shall begin working on the technical development of the actual OIS
integration with Accela. Work will include OIS data layer conversions and consolidation
as needed for this project. Much of this heads-down type of development work shall be
performed off-site. As needed, CONSULTANT's staff will be on-site for meetings and
demonstrations of development progress.
5 of7 Revision July 25, 2012
Task #3 -Testing
After the completion of initial development of the GIS integration solution,
CONSULTANT will work with CITY staff to thoroughly test the solution to ensure it
meets the documented requirements. This includes functionality, performance, content,
look-and-feel, security, and data/work flows. Any problems documented during the
testing phase will be corrected. Any new requirements or enhancements that are
documented will be considered out-of-scope. The project managers will determine the
best course of action to include or wait on the development on any new requirements.
The testing phase shall require on-site meetings for demonstration and one-on-one
interaction with users.
Task #4 -Implementation and Training
After CITY approves and signs-off on the testing phase, CONSULT ANT will work
with TruePoint staff to implement the GIS solution into CITY production environment.
At the conclusion of implementation, CONSULT ANT will offer training to CITY staff on
the use of the GIS products as they relate to the Accela environment. Training may
include a mix of both one-on-one and classroom style training all of which would be
provided on-site.
AMENDMENT NO. 2: ADDITIONAL SCOPE
A. CONSULT ANT shall be responsible for providing CONSULT ANT' s staff with equipment
necessary to perform the services requested by CITY, except that CITY will provide use ofa
computer capable of accessing the CITY's network and use of a CITY landline telephone.
B. CONSULTANT shall provide personnel capable of performing a supervisory /managerial
role as necessary to supervise day to day work of CONSULTANT's staff.
C. CONSULTANT shall ensure, at its sole expense that CONSULTANT's staff maintain
certifications required to perform the services requested by CITY. Training is the
responsibility of CONSULTANT. CONSULTANT will not charge CITY for training, time
in training, or any expenses related to training unless training is unique to CITY and required
by CITY. CONSULTANT responsibilities under this section include provision of
emergency preparedness training, such as A TC 20 training and SAP ce1tification.
D. CONSULTANT shall make contract personnel and resources available for emergency
response at the same hourly rates and conditions specified in this Agreement.
6 of7 Revision July 25, 2012
EXHIBIT "C"
COMPENSATION
The CITY agrees to compensate the CONSUL TANT for professional services performed in
accordance with the terms and conditions of this Agreement based on the hourly rate schedule
attached as Exhibit C-1.
The compensation to be paid to CONSULT ANT under this Agreement for all services
described in Exhibit "A" ("Services") and reimbursable expenses shall not exceed
$150,000.00. CONSULTANT agrees to complete all Services, including reimbursable
expenses, within this amount. Any work performed or expenses incurred for which payment
would result in a total exceeding the maximum amount of compensation set forth herein shall
be at no cost to the CITY.
AMENDMENT NO. 2: REIMBURSABLE EXPENSES
The administrative, overhead, secretarial time or secretarial overtime, word processing,
photocopying, in-house printing, insurance and other ordinary business expenses are included
within the scope of payment for services and are not reimbursable expenses. CITY shall
reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for
which CONSULTANT shall be reimbursed are:
A. Travel outside the San Francisco Bay area, including transportation and meals, will be
reimbursed at actual cost subject to the City of Palo Alto's policy for reimbursement of travel
and meal expenses for City of Palo Alto employees. CONSULTANT shall ensure that
CONSULT ANT' s staff has sufficient transportation to perform the services requested by
CITY within the San Francisco Bay area. CITY will not provide vehicles or transportation,
nor will it reimburse for mileage or meals within the San Francisco Bay area.
All requests for payment of expenses shall be accompanied by appropriate backup information.
Any expense anticipated to be more than $0.00 shall be approved in advance by the CITY's
project manager.
ADDITIONAL SERVICES
The CONSULTANT shall provide additional services only by advanced, written authorization
from the CITY. The CONSULTANT, at the CITY' s project manager's request, shall submit a
detailed written proposal including a description of the scope of services, schedule, level of
effort, and CONSULTANT's proposed maximum compensation, including reimbursable
expenses, for such services based on the rates set forth in Exhibit C-1. The additional
services scope, schedule and maximum compensation shall be negotiated and agreed to in
writing by the CITY's Project Manager and CONSULTANT prior to commencement of the
services. Payment for additional services is subject to all requirements and restrictions in this
Agreement.
7 of7 Revision July 25, 2012
AMENDMENT NO. 1 TO CONTRACT NO. C13149366
BETWEEN THE CITY OF PALO ALTO AND
CSG CONSULTANTS, INC.
This Amendment No. 1 to Contract No. C13149366 ("Contract") is entered into June 16, 2014 by
and between the CITY OF PALO ALTO, a California chartered municipal corporation ("CITY"),
and CSG CONSULTANTS, INC., a California corporation, located at 1700 South Amphlett
Blvd.3rd Floor, San Mateo, California, 94402, Telephone (650)522-2500 ("CONSULTANT").
RECITALS:
A. The Contract was entered into between the parties for the provision of On-Call
Building Inspection and Building Permitting services; and
B. CITY intends to extend the term and increase the Not to Exceed
Compensation from $50,000.00 by $50,000.00 to $100,000.00 for continuation of services and
additional services as specified in Exhibit "A" Scope of Services ;and
C. The paities wish to amend the Contract;
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and
provisions of this Amendment, the parties agree:
SECTION 1. Section 4 is hereby amended to read as follows:
SECTION 2. TERM.
The term of this Agreement shall be from July 1, 2013 through June 30, 2015 with an option to
extend the agreement for one, one yeai·, additional term , unless terminated earlier pursuant to Section
19 of this Agreement.
SECTION 2. Section 4 is hereby amended to read as follows:
"SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to
CONSULT ANT for performance of the Services described in Exhibit "A", including both payment
for professional services and reimbursable expenses, shall not exceed One Hundred Thousand
Dollars ($100,000.00). The applicable rates and schedule of payment are set out in Exhibit "C-1",
entitled "HOURLY RA TE SCHEDULE," which is attached to and made a part of this Agreement.
Additional Services, if any, shall be authorized in accordance with and subject to the provisions of
Exhibit "C". CONSULTANT shall not receive any compensation for Additional Services performed
without the prior written authorization of CITY. Additional Services shall mean any work that is
determined by CITY to be necessary for the proper completion of the Project, but which is not
included within the Scope of Services described in Exhibit "A"."
1of6 Revision July 25, 2012
SECTION 3. The following exhibit(s) to the Contract is/are hereby amended to read
as set forth in the attachment(s) to this Amendment, which are incorporated in full by this reference:
a. Exhlbit "A" entitled "SCOPE OF SERVICES"
b. Exhibit "C" entitled "COMPENSATION".
SECTION 4. Except as herein modified, all other provisions of the Contract,
including any exhibits and subsequent amendments thereto, shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have by their duly authorized representatives
executed this Amendment on the date first above written.
CITY OF PALO ALTO
City Manager
APPROVED AS TO FORM:
Senior Asst. City Attorney
Attachments:
EXHIBIT "A"
EXHIBIT "C":
SCOPE OF SERVICES
COMPENSATION
2 of6 Revision July 25 , 2012
EXHIBIT A
SCOPE OF SERVICES
CONSULTANT shall provide professional services consisting of Pe1mit Processing and Inspection
services on an as-needed (on-call) basis.
Permit Processing Services
CONSULT ANT shall be responsible for providing permit-technician, clerical and/or administrative
services as requested by the City on an as needed basis.
CONSULTANT shall provide staff, on an as need basis that shall work on-or off-site at the City's
Development Center under the supervision of the Development Services Director or designee which
may include the Chief Building Official, Inspection Services Supervisor and/or Development Center
Manager with the knowledge, skills and abilities to perform the following functions:
Enter permit and related data into the Accela permit tracking system; research, compile and prepare
various limited reports and presentation graphics; assist the general public at the front counter or by
phone/ e-mail regarding building, planning, engineering and fire pe1mit requirements, application and
permit fees, application filing procedures and processing, and permit status; accept permit and
related applications and collect fees; screen plans and application materials for completeness and for
conf01mance with City ordinances, standards, policies and guidelines; review application materials
for compliance with conditions of project approval; route plans to other city departments/divisions
for review; approve and issue minor permits; research and respond to public inquiries; build and
maintain positive working relationships with co-workers, City staff and the public using principles of
good customer service; and perform related duties as assigned.
When requested to furnish staff, CONSULTANT shall provide resumes (including licenses and other
credentials) of all candidates who shall be available to perform Permit Processing services. The City
retains the right to select or reject any or all candidates based on a review of resumes and/or
subsequent interviews.
Building Inspection Services
CONSULTANT shall be responsible for providing building inspection services on an as needed
basis, as requested by the City, to meet workload demands and service delivery goals . The City shall
use the services of the CONSULTANT'S firm to provide inspection staff to supplement the City's
regular staff. When requested to provide building inspection services, CONSULTANT shall perform
the following services:
1. Perform all requested inspections and re-inspections for compliance with City and State
codes and applicable regulations.
2. Coordinate all inspection and re-inspection requests.
3 of 6 Revision July 25, 2012
3. Confer with the Chief Building Official, building plan check supervisor, and/or Inspection
Services Supervisor on all discretionary decisions or requests for alternate materials or types
of construction.
4. Coordinate with the Chief Building Official and/or Inspection Services Supervisor on all
Certificates of Occupancy to ensure that all applicable City departments and regulatory
agencies have approved the project.
5. Enter all inspection records into the Accela permit tracking system. Maintain all inspection
records for all assigned projects, to be turned over to the City within five working days of
when requested by the City. Records include all correction notices and all documentation
related to design changes.
6. Coordinate inspection activities with any and all third-party inspectors and special inspection
agents retained by owners and/or their contractors.
7. Have CASp certified staff available to the City on an as-needed basis.
8. Participate in and attend weekly Inspection Division staff meetings and training events
sponsored by the City.
When requested to furnish staff, CONSULT ANT shall provide resumes (including licenses and other
credentials) of all candidates who shall be available to perform Building Inspection services. The
City retains the right to select or reject any or all candidates based on a review of resumes and/or
subsequent interviews.
AMENDMENT NO. 1: ADDITIONAL SCOPE
A . CONSULTANT shall be responsible for providing CONSULTANT' s staff with equipment
necessary to perform the services requested by CITY, except that CITY will provide use of a
computer capable of accessing the CITY's network and use of a CITY landline telephone.
B. CONSULTANT shall provide personnel capable of performing a supervisory /managerial
role as necessary to supervise day to day work of CONSULT ANT's staff.
C. CONSULTANT shall ensure, at its sole expense that CONSULTANT's staff maintain
certifications required to perform the services requested by CITY. Training is the
responsibility of CONSULTANT. CONSULT ANT will not charge CITY for training, time
in training, or any expenses related to training unless training is unique to CITY and required
by CITY. CONSULT ANT responsibilities under this section include provision of
emergency preparedness training, such as ATC 20 training and SAP certification.
4 of6 Revision July 25 , 2012
D. CONSULTANT shall make contract personnel and resources available for emergency
response at the same hourly rates and conditions specified in this Agreement.
5of6 Revision July 25, 2012
EXHIBIT "C"
COMPENSATION
The CITY agrees to compensate the CONSULTANT for professional services performed in
accordance with the tenns and conditions of this Agreement based on the hourly rate schedule
attached as Exhibit C-1.
The compensation to be paid to CONSULTANT under this Agreement for all services
described in Exhibit "A" ("Services") and reimbursable expenses shall not exceed
$100,000.00. CONSULTANT agrees to complete all Services, including reimbursable
expenses, within this amount. Any work performed or expenses incurred for which payment
would result in a total exceeding the maximum amount of compensation set forth herein shall
be at no cost to the CITY.
AMENDMENT NO. 1: REIMBURSABLE EXPENSES
The administrative, overhead, secretarial time or secretarial overtime, word processing,
photocopying, in-house printing, insurance and other ordinary business expenses are included
within the scope of payment for services and are not reimbursable expenses. CITY shall
reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for
which CONSULTANT shall be reimbursed are:
A. Travel outside the San Francisco Bay area, including transportation and meals, will be
reimbursed at actual cost subject to the City of Palo Alto's policy for reimbursement of travel
and meal expenses for City of Palo Alto employees. CONSULTANT shall ensure that
CONSULTANT's staff has sufficient transportation to perform the services requested by
CITY within the San Francisco Bay area. CITY will not provide vehicles or transportation ,
nor will it reimburse for mileage or meals within the San Francisco Bay area.
All requests for payment of expenses shall be accompanied by appropriate backup information.
Any expense anticipated to be more than $0.00 shall be approved in advance by the CITY's
project manager.
ADDITIONAL SERVICES
The CONSULTANT shall provide additional services only by advanced, written authorization
from the CITY. The CONSULT ANT, at the CITY' s project manager's request, shall submit a
detailed written proposal including a description of the scope of services, schedule, level of
effort, and CONSULTANT's proposed maximum compensation, including reimbursable
expenses, for such services based on the rates set forth in Exhibit C-1. The additional
services scope, schedule and maximum compensation shall be negotiated and agreed to in
writing by the CITY's Project Manager and CONSULTANT prior to commencement of the
services. Payment for additional services is subject to all requirements and restrictions in this
Agreement.
6of6 Revision July 25, 2012
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i
JUN-3-2014 08:57 FROM:KUTZMANN AND ASS 5107969422 T0:16503292468
AMENDMENT NCI. 2 TO CONTRACT NO. Cl.3149368
BETWEEN TUE CITY OF PALO ALTO AND
KUTZMANN & ASSOCL,1'ES, INC.
Th is Amendment Nc1. 2 to Contl'llct No. C 13 I 49368 ("Conti'act") ls enterwd int<• the 16th
Ony of June 2014, by and belween the CITY OF PALO ALTO, a California chartE1t•ed municipal
corporation ("CITY"), and KUTZ!\IIANN & ASSOC:IATF.S,INC. a California corp1m1~ion, located at
39355 California Street, Ste. 200, Fremont, California, 94538, Telephone (SIO)i96-3003
("CONSUL TANT").
A. The Contract was cmtered into between the parties for the provision ofOn·CaU
Bullding Plan Check and Building Jnspc:ction Se1vices: and ·
B. CITY intends to i:xlend th,1: term and increase the Notto ExcClltdl Cc1mpensa1fon.
from $363,000.00 by $363,000.00 t'o $'726,000,0t~ for contint1ation of services und addili<mal servi.x:s
as specified in Exhibit "A" Scope c1f Services ;and
C. The parties ·1vish to amend the Cont~ict;
NOW, THEREFORE, ii1 considemtion of the covenants, terms. cmiditions, and
provisions ofthls Amendment, the pwtfos agree':
SECTION 1. Section 4 u11 hereby amended to read as follows:
SECTION 2. IEIW-
The tenn of this Agreement shall be fro1nrn July I, 20r.3 through June30,201 S with an o~tion lo ellte:~d
the ugreement forone, one year, additiornil tem1, 1.inless tenninuted earlier pursuant to Sc1ction 19 of this
Agreement.
SECTTON 2. Sectic111 4 l:i hereby amended to rend as follows:
"SECTION 4. NOT TO EXCFJY!..f.OMP/l!:.NSATIW1· The compensation to be pai.d to
CONSULTANT for performance oflh1~ !lervices described in Exhibit" A", including bc1th payme1n1: for
professional services and reimbursable expenses, shall not exceed Seven Hundred Twenty S:lx
Thousand Dollars ($726,000.00), The ,,pplicable rates and schedule of payment are set: out in E~:hibit
"C..1", entitled "HOURLY .RATE SCIIBDULJE," which is attached to and made 1t part of this
Agreement.
Additional Services, if any, shall be aiJthorized in accordanc:e with and suQ,iect to th<1 provisions of
Exhibit "C". CONSUL TANT sholl not receive any compensation for Additional Serv!cx:s pe1f1mn«l
without lho prior written aulhoriza.tlon of CITY. Additional Services shall mean any work that is.
determined by CITY to be necessary for 1the propE:r c,ompletio11 of the Projec~ but which is not included
wilhin the Scope of Services describ•e<l i:~ Exhibit "A"."
I i
JUN-3-2014 08: 57 FROM: KUTZMANN AND A!:iS 5107%~3422 TO: 16503292468
SECTION~. The foH1~wu111g exhibit(i>) to the Contract is/are hel'llby 11mcndc1d 1o rc;ad ,as
set forth in the attachment(s) to this Arn{1ndment, which are incorporated in full by this refc:ren~:
a. Exhibit "A" entitled "SCOPE OF SERVfCF.S"
b. Exhlbtt "C" <mtitlc~d "COMPENSATION"
c. Exhibit "Cl" entitle.! "HOURLY RATE SCHEDULE
SECTION 4. Excepuis hE1rein modified, all other provisions of the Contract, including
any exhibit~ and subsequent amcnd:mient:i thereto., shall remain in full force and effect
JN WITNESS WI:IBREOF, the pairtic:s have by their duly authorized rcprescnta!ives
executed this Amendment on the date: first above, written.
CITY OF PALO AL TO
City Manager
APPROVED AS TO .FORM:
Senior Asst. City Attorney
Attachments:
EXHIBIT "A"
EXHIBIT "C":
SCOPE OF SERVICES
COMPENSATION
KUTZMANN & ASSOClATES., JIN(:.
By:_~~o.L.Q
EXHIBIT "Cl" HOURLY RATE :SCHEDULE
JUN-3-2014 08: 58 FROM: KUTZMANN AND A~oS 510796~j422
F.:XHD.BlfT A
SIC(>l!'E O~i' SERVl1CE:S
TO: 16503292468
CONSULT ANT shall provide profossi1)11al scrvkes consisting of Building Plan Check and J3uilding
Inspection services on an as-needed (on.;;a.11) basis.
Buildil!!g Plan Check Seryice11
CONSUL TANT shall be responsible ti)r providing building plan check services as requested by the
City on an as needed basis. Plan check services shall be provided either by supplying staffto work on
site at the City's Development Center under the direction of the Chief Building CJt1ticial or by
performing plan reviews off site nt CONSUL'TANT'S office when plans are tra11sml1ted to
CONSUL TANT by the City. The rnmm1er in which plan clwck services will be perfo•med shall! be
determined by the City's Chief Building Official When rec1ue~1ed lo pruvide plan cil1eck serv'iccs,
CONSULTANT shall be expected to perfonn tht~ following services:
l. Preliminary plan review consultations In CONSULTANT'S office or by telephoTiieie-mail.
2. Initial plan review ofpr~jcct plam1 and othi:r related documents submitted in oonjunction with
applications for Building Permits to determine compliance with the adopted uniform oode:s,
applicable laws, regulations nnd local ordinances. The servioos shall include, but not br. limited
to, review of the following, as applicable to each pir0ject: Architect\lral, Stru¢t~ir11l, Civil,
Electrical, Mcchilllical and Phm1bing plllllls, structural calculations, accessibiliW compllanc1~,
fire and life safety comp01~1en1s, geoteclmii:al reports, Green Building and Energy Co,IJle
compliance documentation ~nd dc:forred submittal items.
3. Provide the applicant's desi1~nee and the City, a typed list afltems needing clnrificario:n or
change to achieve confonnuui:e viith the Cllbove regulations.
4. Maintain sufficient communicatic111 with th1i a1,plicnnt's designee(s), either by telephone/e·muil,
mail or meeting in CONSULTANT'S office and perfo1m all necessary plan rachccksto achieve
conformance to the regulations.
5. Provide recommendations and ~1cl:s as liai!;o11 to the Chief Building Official, or his d11siginoo,
either by mail/e.mnil, telephc1ne or in CONSULTANT'S office, to ensure complhurmcwith Palo
Alto's Municipal Code requirements.
6. Pedi:>nn plan reviews of reviii!ons to pla11s that have previously been approved fur pllrmit
Issuance, or perfonn plan revfow11 of changes to plans prior to such approval.
7. Attend meetings related lo propo~ed building projects at the request of the Chief Building
Official at locutions other th1m CONSULl'ANT'S oftlce.
.,
JUN-3-2014 08: 59 FROM: KUTZMANN AND A:5i3 5107969422 TO: 16503292458
8. Provide City with periodic 1~ra.1 1rcvlcw ;rtatus r¢p¢itl for all prOj¢¢!$ llSSigncd i>:V the Chief
Building Official,
When requested 10 furnish staff, CONSUL'T ANT shall provide resumes (including licens~s and other
credentials) of all candidates who shall !be• available to perfom1 Building Plan Check ser'lices. The City
retains the right to select or reject any or all candidates based on a review ofresumes and/or subsequent
interviews.
Buildi111g Inspection Services
CONSUL TANT shall be responsibl<! for providing building Inspection services on an a.q needed basis,
as requested by the City, to meet workk>1~d demands and service delivery goals. The City shall use the
services of the CONSULTANT'S firm to provide inspection staff to supplement the Cit:y'1; re~:ul:lr
staff. When requested to provide building insp1::ction scrvl<:cs, CONSULTANT shall perform the
following services:
I. Perform all requested inspectlor1s and re-inspections forcomplillllce with City a~d State cod~s
and applicable regulations.
2. Coordinate all inspection and re-ir1:1pectic1n requests.
3. Conf-er with the Chief Buildin~: Official, building plan check supervisor, and/or lnsµec,tion
Services Supervisor on all dl:1cretionary decisions or requests for alternate materials ortyp1;is of
construction,
4. Coordinate with the Chief 13uildirtg Ofl'ici11>I and/or lnspccti1m Services Sup~rvisor 011 all
Certificates of Occupancy to ensure that all applicable City departments and regulatory age~1cies
have approved the project.
5. Enter all inspection records i~1to the Accela permit tracking system, M&intaun .a!ll inspection
records for all assigned projeci:s, tn be turned over to the City within five workin1~daysofwhC111
requested by the City. Records !n1:lude all corrccti.on notices and all documentation rr.lat~:d to
design changes.
6. Coordlnate inspection activifois with any 11.nd all thinJ .. part:y inspectors and spel:fall in1;pection
agents retained by owners and/o.r t~eir co11tra.~'tors.
7. Have CASp certified staffavaih1ble to tho City on an :;is-needed basis.
8. Participate in and attend week:!)' Jns11ection Division staff meetings and tr:;ining ev¢nts
sponsored by the City.
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JUN-3-2014 08:59 FROM:KUTZMANN AND ASS 5107969422 TO: 16503292468
When requested to furnish staff, CONSULTANT shall provide.resumes (including lic1111ses and ~>ther
credentials) of all candidates who shall b~: available to perfonn Building Inspection services. The City
retains the rightto select orteject llil)IOl" ~JI candidates b11$ed <ma review 1>f resu111esaruUorsubseq11ent
interviews.
AMENDMENT NO. 2: ADDITIO!lfAL SCOPE ---B---·-
A. CONSULTANT shall be responsible for providing CONSULTANT's staffwith equipment
necessary to perform the soivices ri;que;;ted by CffY, except that CITY will provide use: of a
computer capable of accessing the CITY"s n.etwork and use of a CITY landlin1~ t~:le11hor1e.
8. CONSUL TANT shall provi1fo pe1'.Sonncl capable ofpmfonning a supervisory /ma:nagcria'I rnfo
as necessary to su.pervise day t<• day work of CONSUL TANT's staff.
C. CONSULTAN1' shall ensure, a.t its sole expense that CONSULTANT's staff maiJ.1tain
certifications required to perfonn the service.5 requestc:d byCl".rY. Training is lh<~msponsibility
of CONSULTANT. CONSILJLTANTwlU not charge CITY'fi:irtralning, time In 111•ai11ing, or ruiy
expenses related to training unl:ess traitilng is unique to CITY and requk1~d by CITY.
CONSUL TANT responsibilides under this section include provision of emergon~y
preparedness training, such a.~ A 1rC 20 b":<Jinlng and SAP certification.
D. CONSUL TANT shall mnke oontl"llot personnel and reiiourccs available for eme11ienoy response
at the same hourly rates and comtitions speci tied in this AJ,'l'eement.
JUN-3-2014 09:00 FROM:KUTZMANN AND A:;s 510796~l422 T0:165032924GB
EXHIJ~lT "C"
CO!W>ENSATION
The CffY agrees to compem1~.te. tli1e CON:SUL TANT for professional services perfonned in
accordance with the terms and conditions of this Agreement based on the hou1·ly rate £Chefalle
attn~hed as Exhibit C-\,
The compensation to be paid to CONSULTANT underflhisAgreemcntforaJI services described
in Exhibit "A" ("Services") a1~1J' reimbursable expenses shall not exceed $726,00o.oo.
CONSULTANT agrees to complete all Services, Including reimb1usable expem~~s, within this
amount. Any work performed or ~,xpenses ln1:urred fo1r which payment would .r•::mlt in a total
exceeding the maximum amount of comp1:n$Rtion set forth herein shall be !rt no co11t to the crrv. ·
The administrative, overhead, se1:retarial time or Sl~cretarial overtime, word processing,
photocopying, in-house prlnti11g, insurance and other o:rdinary business expense:> al'e included
within the scope of payment fot services and are no! reimbursable expenses. CITY s.hall
reimburse CONSULTANT for the' following rc:imburs11ble expenses at cost. Expe1:1s11s forwlilich
CONSUL TANT shall be reimbursocd are:
A. Travel outside the San Fnmcisco Bay area, incluc:!ling transportati.on and m•~ds, will be
reimbul'$ed at actual cost ~ubj,~<:t tlJ the City of Palo Aho's policy for reimbursement <)ftr.avc:I
and meal expenses for City <Jf Palo Alto 1:mployee:s, CONSULT ANT shall llnsute th11t
CONSULT ANT's staff has sufficient transportatlon to perform the services reque:sTI:d by CITY
within the San Francisco Bay ar·ea. CITY wil I not provide vehicles or transportation, nor will it
reimburse for mileage or meals within the San Francisco Bay area.
All requests for payment ofexpens,e:sshall be accompanied by appropriate backu11 info!Tl'lation.
Any expense anticipated to bt) mom than $0.00 shall be approved in advance by ~Ile CJTY's
project manager.
ADl>ITlONAL SERVICES
The CONSULTANT shall pn:•Yicle additional :iervices <tnly by advanced, written aulhori~tion
from the CITY. The CONSlJLTi\NT. at th~ Cl"fY's: project manager's request, :;:hall s:ubmit a
detailed written proposal including a dcsc11'ipt'ion of tho scope of s=rvices, schodule, lcve:l c1f
effort, and CONSULTANT's proposed maximum compcn~tion, including reimbursable
expenses, for such services based on the rates set forth in Exhibit C-l. The additional servi1:es
scope, schedule and maximum 1:cmpcnsation shall be negotiated and agreed to in writing by the
C11'Y 's Project Manager and CONSULT A NT prior to commencement of the serv>ceii. Payment
for additional services is subj•~c:t ti) nil requlre:nnents a111d restrictions in this Agreement.
I
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JUN-3-2014 09: 01 FROM: KUTZMRNN RND R:3S 5107969422 TO: 16503292468
JEXHIB:.IT "C-l"
Permit Proses5ing:
Permit Processing, Rulldlng Techntcl1m
Hourly rates to be negotiated with the City based on the individuals' qualifications, experience
and additional special knowledge and skills required by ~he City.
Clerical Staff
For general clerlcal duties that do niot involve pi:rmit proces1;ing: $45.00 pe1r flour
Full Plan Checks:
Standard fee for a full plan check (including stnuctllJ:aJ and non-structural, disabled acce!1s, energy
conservation, mechanical, electrical, and plumbing) is ha~ed on a.percentage nfthe R1.1ilding
Division's plan check fee. Addition;af rc:chccks urc bi fled cm a time & materials basis. This fee:
includes the initial review and the two n'°hecks. 65 percent
Structural Only Plan Check.f
The Kutzmann & Associates' fee fol' a. structural! only pla11 check is based on a percentage for the
Building Division's plan chi:ck fee. This fee indudes lhe inltilll review und the two r•::cheoks.
45 perc1en¢
Expedited Plcm Check Fees
.Expedited fees arc typically 1.S time:; our standard fee but may be negotiable dependent on the
size and complexity of the project
ElecJive (3"' Party) Plan Check
There is no cos! to the City of Pnlo Alto for this 11ervicc. Billing and· payments arc handled
directly between the Kutzmann & Associates anr.I 1t1e pemiit applicants.
Hourly Rates
Additional rechecks, non-standard 1plru1 ~:hecks (1:uch llll for revisions to existing pennils) as well!
as con~ullalion lll"e billed on a time .st mat~rlals basis. $99.00 pe11• Jn.our
In-House Plan Checking (Kutzmann s1afl at City Offices)
Plan Checker
Plan Check Engineer (PE or SE)
$99.00 pe1r hour
$105.00 p1DI' i~OllW
P.EV9
JUN-3-2014 09:01 FROM:KUTZMANN AND ASS 5107969422 T0:16503292468
Method of Invoicing
Our plan check services a,re invoked monlhly and are due within 30 days unless oth~11:
11m111gemcnts arc mado. Invoices will be fully itemized and provide sufficient infom:1a.1iion for
approving payment and audit purpo,ses. Plan check jobs ~re: invoiced after the initial plan chc,:k
has been completed.
Tn-house pl1111 check work hours ate, bfflcd on a bi-monthly 'basis at the end of each Kuti:mann &
Associates' pay period. (See inspec1or invoicin1;: method,, b1ilow)
Quilding Inspection:
Senior Combination Inspector $99.00 pir hour
lnspeotor used in a supervisory/mnriag1arial role $1 OS.00 per hour
Additional Inspection Personnel
Method of Invoicing
Hourly raites to be negotiated with the City bascld on
individuals' qualifications, experience and any additional
special knowledge or skills required by the Cil)1.
Build.ing inspector and work hours ar1: llilled on a bi-monthly basis at the end of eeich Kutzmanr1
& A~sociates' pay period .
. Miscellaneous Charges:
Nole: Personnel charges are no/ hilled/or generial secrelllrial sel'Vices. office marmg~~ment,
accounting and maintenanc.i; these items are Included in overhead
Printing and copying costs are b!ISl~d on fifteen 11:ents ($0.15) per sheet (8 Y, xi I). Mileage rate
is $0.48 per mile.
Any other outside services are b;H,ad 011 the 11i..11ml cost plus ten percent (10%). Ove1time charges
are 1.5 times the regular rate.
8 of8 Revlsklll J'uly lS, 2012
AMENDMENT NO. 1 TO CONTRACT NO. C13149369
BETWEEN THE CITY OF PALO ALTO AND
TRB & ASSOCIATES, INC.
This Amendment No. 1 to Contract No. C 13149369 ("Contract") is entered into June 16, 2014 by
and between the CITY OF PALO AL TO, a California chattered municipal corporation ("CITY"),
and TRB & ASSOCIATES, INC., a California corporation, located at 3180 Crow Canyon Place,
Suite 216, San Ramon, California, 94583, Telephone (925)866-2633 ("CONSULTANT").
RECITALS:
A. The Contract was entered into between the pruties for the provision of On-Call
Building Plan Check Services; and
B. CITY intends to extend the term and increase the Not to Exceed
Compensation from $50,000.00 by $50,000.00 to $100,000.00 for continuation of services and
additional services as specified in Exhibit "A" Scope of Services ;and
C. The parties wish to amend the Contract;
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and
provisions of this Amendment, the patties agree:
SECTION 1. Section 4 is hereby amended to read as follows:
SECTION 2. TERM.
The term of this Agreement shall be from July 1, 2013 through June 30, 2015 with an option to
extend the agreement for one, one year, additional term, unless te1minated earlier pursuant to Section
19 of this Agreement.
SECTION 2. Section 4 is hereby amended to read as follows:
"SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to
CONSULT ANT for performru1ce of the Services described in Exhibit "A", including both payment
for professional services and reimbursable expenses, shall not exceed One Hundred Thousand
Dollars ($100,000.00). The applicable rates and schedule of payment are set out in Exhibit "C-1 ",
entitled "HOURLY RATE SCHEDULE," which is attached to and made a part of this Agreement.
Additional Services, if any, shall be authorized in accordance with and subject to the provisions of
Exhibit "C". CONSULTANT shall not receive any compensation for Additional Services performed
without the prior written authorization of CITY. Additional Services shall mean any work that is
determined by CITY to be necessaty for the proper completion of the Project, but which is not
included within the Scope of Services described in Exhibit "A"."
1of5 Revision July 25, 2012
SECTION 3. The following exhibit(s) to the Contract is/are hereby amended to read
as set forth in the attaclunent(s) to this Amendment, which are incorporated in full by this reference:
a. Exhibit "A" entitled "SCOPE OF SERVICES"
b. Exhibit "C" entitled "COMPENSATION".
SECTION 4. Except as herein modified, all other provisions of the Contract,
including any exhibits and subsequent amendments thereto, shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have by their duly authorized representatives
executed this Amendment on the date first above written.
CITY OF PALO ALTO
City Manager
APPROVED AS TO FORM:
Senior Asst. City Attorney
Attaclunents:
TRB & ASSOCIATES, INC.
~--_--=~~~,__----=-.::::.---_ c_ -0
Name:_~/~a~oo~_B_:/t"_t_t..N ___ _
EXHIBIT "A"
EXHIBIT "C":
SCOPE OF SERVICES
COMPENSATION
2of5 Revision July 25, 201 2
EXHIBIT A
SCOPE OF SERVICES
CONSULT ANT shall provide professional services consisting of Building Plan Check services on an
as-needed (on-call) basis.
Building Plan Check Services
CONSULT ANT shall be responsible for providing building plan check services as requested by the
City on an as needed basis. Plan check services shall be provided either by supplying staff to work
on site at the City's Development Center under the direction of the Chief Building Official or by
performing plan reviews off site at CONSULT ANT'S office when plans are transmitted to
CONSULT ANT by the City. The maimer in which plan check services will be performed shall be
determined by the City's Chief Building Official. When requested to provide plan check services,
CONSULTANT shall be expected to perform the following services:
1. Preliminary plan review consultations in CONSULTANT'S office or by telephone/e-mail.
2. Initial plan review of project plans and other related documents submitted in conjunction
with applications for Building Permits to determine compliance with the adopted uniform
codes, applicable laws, regulations and local ordinances. The services shall include, but not
be limited to, review of the following, as applicable to each project: Architectural, Structural,
Civil, Electrical, Mechanical and Plumbing plans, structural calculations, accessibility
compliance, fire and life safety components, geotechnical reports, Green Building and
Energy Code compliance documentation and deferred submittal items.
3. Provide the applicant's designee and the City, a typed list of items needing clarification or
change to achieve conformance with the above regulations.
4. Maintain sufficient conummication with the applicant's designee(s), either by telephone/e-
mail, mail or meeting in CONSULT ANT'S office and perform all necessary plan rechecks to
achieve conformance to the regulations.
5. Provide reconunendations and acts as liaison to the Chief Building Official, or his designee,
either by mail/e-rnail, telephone or in CONSULTANT'S office, to ensure compliance with
Palo Alto's Municipal Code requirements.
6. Perfo1m plan reviews of revisions to plans that have previously been approved for permit
issuance, or perform plan reviews of changes to plans prior to such approval.
3 of 5 Revision July 25, 2012
7. Attend meetings related to proposed building projects at the request of the Chief Building
Official at locations other than CONSULTANT'S office.
8. Provide City with periodic plan review status rep011s for all projects assigned by the Chief
Building Official.
When requested to furnish staff, CONSULT ANT shall provide resumes (including licenses and other
credentials) of all candidates who shall be available to perform Building Plan Check services. The
City retains the right to select or reject any or all candidates based on a review of resumes and/or
subsequent interviews.
AMENDMENT NO. 1: ADDITIONAL SCOPE
A. CONSULTANT shall be responsible for providing CONSULT ANT's staff with equipment
necessary to perform the services requested by CITY, except that CITY will provide use of a
computer capable of accessing the CITY's network and use of a CITY landline telephone.
B. CONSULT ANT shall provide personnel capable of performing a supervisory /managerial
role as necessary to supervise day to day work of CONSULT ANT's staff.
C. CONSULTANT shall ensure, at its sole expense that CONSULTANT's staff maintain
certifications required to perform the services requested by CITY. Training is the
responsibility of CONSULT ANT. CONSULT ANT will not charge CITY for training, time
in training, or any expenses related to training unless training is unique to CITY and required
by CITY. CONSULTANT responsibilities under this section include provision of
emergency preparedness training, such as A TC 20 training and SAP certification.
D. CONSULTANT shall make contract perso1mel and resources available for emergency
response at the same hourly rates and conditions specified in this Agreement.
4 of5 Revision July 25, 2012
EXHIBIT "C"
COMPENSATION
The CITY agrees to compensate the CONSULT ANT for professional services perfo1med in
accordance with the terms and conditions of this Agreement based on the hourly rate schedule
attached as Exhibit C-1.
The compensation to be paid to CONSULT ANT under this Agreement for all services
described in Exhibit "A" ("Services") and reimbursable expenses shall not exceed
$100,000.00 . CONSULTANT agrees to complete all Services, including reimbursable
expenses, within this amount. Any work performed or expenses incurred for which payment
would result in a total exceeding the maximum amount of compensation set f011h herein shall
be at no cost to the CITY.
AMENDMENT NO. 1: REIMBURSABLE EXPENSES
The administrative, overhead, secretarial time or secretarial ove11ime, word processing,
photocopying, in-house printing, insurance and other ordinary business expenses are included
within the scope of payment for services and are not reimbursable expenses. CITY shall
reimburse CONSULT ANT for the following reimbursable expenses at cost. Expenses for
which CONSULTANT shall be reimbursed are:
A. Travel outside the San Francisco Bay area, including transpo11ation and meals, will be
reimbursed at actual cost subject to the City of Palo Alto's policy for reimbursement of travel
and meal expenses for City of Palo Alto employees. CONSULTANT shall ensure that
CONSULT ANT's staff has sufficient transportation to perform the services requested by
CITY within the San Francisco Bay area. CITY will not provide vehicles or transpo11ation,
nor will it reimburse for mileage or meals within the San Francisco Bay area.
All requests for payment of expenses shall be accompanied by appropriate backup infmmation.
Any expense anticipated to be more than $0.00 shall be approved in advance by the CITY's
project manager.
ADDITIONAL SERVICES
The CONSULTANT shall provide additional services only by advanced, written authorization
from the CITY. The CONSULT ANT, at the CITY's project manager's request, shall submit a
detailed written proposal including a description of the scope of services, schedule, level of
effort, and CONSULTANT's proposed maximum compensation, including reimbursable
expenses, for such services based on the rates set f011h in Exhibit C-1. The additional
services scope, schedule and maximum compensation shall be negotiated and agreed to in
writing by the CITY's Project Manager and CONSULTANT prior to commencement of the
services. Payment for additional services is subject to all requirements and restrictions in this
Agreement.
5 of 5 Revision July 25, 2012
1 of 7 Revision July 25, 2012
AMENDMENT NO. 1 TO CONTRACT NO. C13149367
BETWEEN THE CITY OF PALO ALTO AND
WEST COAST CODE CONSULTANTS, INC.
This Amendment No. 1 to Contract No. C13149367 (“Contract”) is entered into June 16, 2014 by
and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”),
and WEST COAST CODE CONSULTANTS, INC., a California corporation, located at 2400
Camino Ramon, Suite 240, San Ramon, California, 94583, Telephone (925)275-1700
("CONSULTANT").
R E C I T A L S:
A. The Contract was entered into between the parties for the provision of On-Call
Building Plan Check Services; and
B. CITY intends to extend the term and increase the Not to Exceed
Compensation from $385,000.00 by $385,000.00 to $770,000.00 for continuation of services and
additional services as specified in Exhibit “A” Scope of Services ;and
C. The parties wish to amend the Contract;
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and
provisions of this Amendment, the parties agree:
SECTION 1. Section 4 is hereby amended to read as follows:
SECTION 2. TERM.
The term of this Agreement shall be from July 1, 2013 through June 30, 2015 with an option to
extend the agreement for one, one year, additional term, unless terminated earlier pursuant to Section
19 of this Agreement.
SECTION 2. Section 4 is hereby amended to read as follows:
“SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to
CONSULTANT for performance of the Services described in Exhibit “A”, including both payment
for professional services and reimbursable expenses, shall not exceed Seven Hundred Seventy
Thousand Dollars ($770,000.00). The applicable rates and schedule of payment are set out in Exhibit
“C-1”, entitled “HOURLY RATE SCHEDULE,” which is attached to and made a part of this
Agreement.
Additional Services, if any, shall be authorized in accordance with and subject to the provisions of
Exhibit “C”. CONSULTANT shall not receive any compensation for Additional Services performed
without the prior written authorization of CITY. Additional Services shall mean any work that is
determined by CITY to be necessary for the proper completion of the Project, but which is not
2 of 7 Revision July 25, 2012
included within the Scope of Services described in Exhibit “A”.”
SECTION 3. The following exhibit(s) to the Contract is/are hereby amended to read
as set forth in the attachment(s) to this Amendment, which are incorporated in full by this reference:
a. Exhibit “A” entitled “SCOPE OF SERVICES”
b. Exhibit “C” entitled “COMPENSATION”
c Exhibit “C1” entitled “HOURLY RATE SCHEDULE
SECTION 4. Except as herein modified, all other provisions of the Contract,
including any exhibits and subsequent amendments thereto, shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have by their duly authorized representatives
executed this Amendment on the date first above written.
CITY OF PALO ALTO
____________________________
City Manager
APPROVED AS TO FORM:
_____________________________
Senior Asst. City Attorney
WEST COAST CODE CONSULTANTS,
INC.
By:___________________________
Name:_________________________
Title:________________________
Attachments:
EXHIBIT “A” SCOPE OF SERVICES
EXHIBIT "C": COMPENSATION
EXHIBIT “C1” HOURLY RATE SCHEDULE
Giyan Senaratne
Principal/CEO
3 of 7 Revision July 25, 2012
EXHIBIT A
SCOPE OF SERVICES
CONSULTANT shall provide professional services consisting of Building Plan Check services on an
as-needed (on-call) basis.
Building Plan Check Services
CONSULTANT shall be responsible for providing building plan check services as requested by the
City on an as needed basis. Plan check services shall be provided either by supplying staff to work
on site at the City’s Development Center under the direction of the Chief Building Official or by
performing plan reviews off site at CONSULTANT’S office when plans are transmitted to
CONSULTANT by the City. The manner in which plan check services will be performed shall be
determined by the City’s Chief Building Official. When requested to provide plan check services,
CONSULTANT shall be expected to perform the following services:
1. Preliminary plan review consultations in CONSULTANT’S office or by telephone/e-mail.
2. Initial plan review of project plans and other related documents submitted in conjunction
with applications for Building Permits to determine compliance with the adopted uniform
codes, applicable laws, regulations and local ordinances. The services shall include, but not
be limited to, review of the following, as applicable to each project: Architectural, Structural,
Civil, Electrical, Mechanical and Plumbing plans, structural calculations, accessibility
compliance, fire and life safety components, geotechnical reports, Green Building and
Energy Code compliance documentation and deferred submittal items.
3. Provide the applicant’s designee and the City, a typed list of items needing clarification or
change to achieve conformance with the above regulations.
4. Maintain sufficient communication with the applicant’s designee(s), either by telephone/e-
mail, mail or meeting in CONSULTANT’S office and perform all necessary plan rechecks to
achieve conformance to the regulations.
5. Provide recommendations and acts as liaison to the Chief Building Official, or his designee,
either by mail/e-mail, telephone or in CONSULTANT’S office, to ensure compliance with
Palo Alto’s Municipal Code requirements.
6. Perform plan reviews of revisions to plans that have previously been approved for permit
issuance, or perform plan reviews of changes to plans prior to such approval.
4 of 7 Revision July 25, 2012
7. Attend meetings related to proposed building projects at the request of the Chief Building
Official at locations other than CONSULTANT’S office.
8. Provide City with periodic plan review status reports for all projects assigned by the Chief
Building Official.
When requested to furnish staff, CONSULTANT shall provide resumes (including licenses and other
credentials) of all candidates who shall be available to perform Building Plan Check services. The
City retains the right to select or reject any or all candidates based on a review of resumes and/or
subsequent interviews.
AMENDMENT NO. 1: ADDITIONAL SCOPE
A. CONSULTANT shall be responsible for providing CONSULTANT’s staff with equipment
necessary to perform the services requested by CITY, except that CITY will provide use of a
computer capable of accessing the CITY’s network and use of a CITY landline telephone.
B. CONSULTANT shall provide personnel capable of performing a supervisory /managerial
role as necessary to supervise day to day work of CONSULTANT’s staff.
C. CONSULTANT shall ensure, at its sole expense that CONSULTANT’s staff maintain
certifications required to perform the services requested by CITY. Training is the
responsibility of CONSULTANT. CONSULTANT will not charge CITY for training, time
in training, or any expenses related to training unless training is unique to CITY and required
by CITY. CONSULTANT responsibilities under this section include provision of
emergency preparedness training, such as ATC 20 training and SAP certification.
D. CONSULTANT shall make contract personnel and resources available for emergency
response at the same hourly rates and conditions specified in this Agreement.
5 of 7 Revision July 25, 2012
EXHIBIT “C”
COMPENSATION
The CITY agrees to compensate the CONSULTANT for professional services performed in
accordance with the terms and conditions of this Agreement based on the hourly rate schedule
attached as Exhibit C-1.
The compensation to be paid to CONSULTANT under this Agreement for all services
described in Exhibit “A” (“Services”) and reimbursable expenses shall not exceed
$770,000.00. CONSULTANT agrees to complete all Services, including reimbursable
expenses, within this amount. Any work performed or expenses incurred for which payment
would result in a total exceeding the maximum amount of compensation set forth herein shall
be at no cost to the CITY.
AMENDMENT NO. 1: REIMBURSABLE EXPENSES
The administrative, overhead, secretarial time or secretarial overtime, word processing,
photocopying, in-house printing, insurance and other ordinary business expenses are included
within the scope of payment for services and are not reimbursable expenses. CITY shall
reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for
which CONSULTANT shall be reimbursed are:
A. Travel outside the San Francisco Bay area, including transportation and meals, will be
reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel
and meal expenses for City of Palo Alto employees. CONSULTANT shall ensure that
CONSULTANT’s staff has sufficient transportation to perform the services requested by
CITY within the San Francisco Bay area. CITY will not provide vehicles or transportation,
nor will it reimburse for mileage or meals within the San Francisco Bay area.
All requests for payment of expenses shall be accompanied by appropriate backup information.
Any expense anticipated to be more than $0.00 shall be approved in advance by the CITY’s
project manager.
ADDITIONAL SERVICES
The CONSULTANT shall provide additional services only by advanced, written authorization
from the CITY. The CONSULTANT, at the CITY’s project manager’s request, shall submit a
detailed written proposal including a description of the scope of services, schedule, level of
effort, and CONSULTANT’s proposed maximum compensation, including reimbursable
expenses, for such services based on the rates set forth in Exhibit C-1. The additional
services scope, schedule and maximum compensation shall be negotiated and agreed to in
writing by the CITY’s Project Manager and CONSULTANT prior to commencement of the
services. Payment for additional services is subject to all requirements and restrictions in this
Agreement.
6 of 7 Revision July 25, 2012
EXHIBIT “C-1”
HOURLY RATE SCHEDULE
Plan Review
For complete plan review services, a fee equal to 75% of the plan check fees received by the City of
Palo Alto. Plan review services will include an initial first and second review with a minor third
review for approval of the plans. Any additional plan review time required beyond the third review
will be billed hourly, with prior approval by the City, per the Schedule of Hourly Billing Rates (see
below). Pick-up and delivery fees are not charged to the City but processed through
CONSULTANT’s established account.
Preliminary plan checks, review of revisions after a project has been approved, and review of
deferred submittals will be done on an hourly basis with a mutually acceptable not-to-exceed
amount. For structural only reviews a fee equal to 45% of the plan check fees received by the
City and for non-structural only reviews a fee equal to 35% of the plan check fees received by the
City.
Projects where the same building or residence is being used more than once on the site will be
charged 15% of CONSULTANT’s plan review fee for the original building.
For expedited or fast-track projects requested by the City, a fee of 150% of the above noted fees.
Civil Review
Review of Civil Plans will be charged at an hourly rate per the Schedule of Hourly Billing Rates
(see below).
Typically civil review services will include an initial first and second review with a minor third
review for approval of the plans.
In House Service
(Plan Review, Permit Processing, Inspections)
In house services for plan review, permit processing, and building inspection will be charged at
an hourly rate per the Schedule of Hourly Billing Rates (see below). Reimbursable expenses may
be charged as indicated below under Additional Cost..
Schedule of Hourly Billing Rates
Classification Hourly Billing Rate
Principal-in-Charge $140
Senior Structural Engineer $125
Senior Civil Engineer $125
Plan Review Engineer/Architect $110
Senior Inspector $100.00
Building Inspector $90.00
Permit Technician $65
Clerical Support $55
7 of 7 Revision July 25, 2012
Additional Costs
Reimbursable Expenses Materials Cost
Reimbursable expenses may include specialized equipment rental, printing costs, and expedited
shipping costs (same day delivery).
City of Palo Alto (ID # 4560)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 6/16/2014
City of Palo Alto Page 1
Summary Title: Enterprise Resource Planning Evaluation Assessment
Contract
Title: Approval of Professional Services Contract with Plante & Moran, PLLC
for Enterprise Resource Planning Evaluation Assessment in the Amount of
$142,175
From: City Manager
Lead Department: IT Department
Recommended Motion
Staff recommends that Council consider the following motion:
Approve, and Authorize the City Manager or His Designee to Execute, the Attached Professional
Services Contract with Plante & Moran, PLLC in the Amount Not to Exceed $142,175. This
Amount Comprises the Professional Services Fee of $129,250 and a 10% Contingency of
$12,925.
Background
The City’s history with SAP began in 2002 when the City selected SAP as its preferred vendor for
an Enterprise Resource Planning system with the purpose of integrating various business
processes within the City. In fiscal year 2003, the implementation of the SAP Enterprise Central
Component (ECC 6.0), SAP core modules, were completed and the SAP system has been
running in the City since 2003, supporting Accounting, Finance, Purchasing, Project
Management, Plant Maintenance, Budgeting, Payroll, Human Resource Management, and
Service Order management. In 2009, the City completed a major upgrade to the SAP ERP
system and, which also replaced the former utility billing system (Banner) with the
implementation of the SAP IS-U module, Customer Relationship Management (CRM), Utilities
Customer Electronic Services (also known as My Utilities Account customer portal) and Business
Intelligence systems (BI).
Both business and technology needs have changed since the current ERP solution was selected
and implemented. Therefore, the City desires to conduct a comprehensive evaluation to
determine a solution to reduce IT application and infrastructure support costs, improve
flexibility, increase user friendliness and intuitiveness of the system, facilitate further
automation of business processes, and improve quality and reliability of information for
City of Palo Alto Page 2
decision making. The assessment does not preclude a decision to remain on SAP completely or
partially going-forward since their recent product announcements indicate a departure from
the past and a shift to contemporary cloud-provided services.
Discussion
The City of Palo Alto requires the services of an Enterprise Resource Planning consultant to
perform an analysis of City’s current SAP environment, business processes and the City’s
strategy; evaluate the ERP market place; and help the City determine a refreshed vision for the
City’s ERP needs. Consultant to perform the following:
Project Management
o Develop a project organizational structure, and charter detailed project plan
Project Initiation
o Conduct a formal project kickoff meeting
Enterprise Resource Planning Needs Assessment
o Defining process-related issues and opportunities for improvement
Review Documents
o Review relevant documentation to understand the current SAP related operations
and technologies
Conduct Departmental Interviews
Conduct Comparative Research
Prepare and Present Enterprise Resource Planning Needs Assessment Report
City Bid Process
RFP Issued February 10, 2014
Non-mandatory Pre-Proposal Teleconference February 19, 2014
Deadline for questions, clarifications February 24, 2014 at 1:00 PM
City of Palo Alto’s response to questions February 27, 2014
Proposals Due
Total of 10 responses received
March 18, 2014 no later than 3:00 PM
Consultant Interviews
Total of 3 vendors were interviewed
April 4, 2014 & April 14, 2014
Consultant selected: Plante Moran April 29, 2014
RESOURCE IMPACT
Funding for this study in the Information Technology Fund was approved by the City Council as
part of the Fiscal Year 2014 Adopted Budget.
POLICY IMPLICATIONS
Approval of these contracts is consistent with current City policies.
City of Palo Alto Page 3
ENVIRONMENTAL REVIEW
This award of contract for professional software services is not a project under the California
Environmental Quality Act (CEQA), therefore, no environmental review is required.
Attachments:
City of Palo Alto Contract Signed (PDF)
City of Palo Alto (ID # 4888)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 6/16/2014
City of Palo Alto Page 1
Summary Title: Law Enforcement Data Sharing Agreement
Title: Recommending Council Authorize the City Manager to Approve Law
Enforcement Data Sharing Agreement
From: City Manager
Lead Department: Police
Recommendation
Staff recommends that Council authorize the City Manager or his designee to execute the
attached law enforcement data sharing Memorandum of Understanding.
Discussion
Law enforcement agencies routinely share information with one another to address crime and
other public safety issues. Until recently, it was relatively difficult for this information sharing to
take place in an efficient and effective manner. Palo Alto and other local police agencies have
begun to participate in regional data sharing agreements which significantly enhance the Police
Department’s ability to share and receive information from other law enforcement agencies.
Under these agreements, agencies are subject to strict requirements for disclosure, use, and
sharing of information and limit these practices to activities undertaken pursuant to an
authorized law enforcement purpose. The Police Department benefits greatly from regional
data sharing and recently has been invited to join an additional data sharing group comprised
of various law enforcement agencies in Northern California.
The Memorandum of Understanding sets forth terms and conditions for the sharing of
information on an integrated system. Palo Alto has found strong value in its use of other
regional data sharing agreements, and desires to continue to participate in these partnerships.
The MOU contemplates sharing of information relating to field investigation, including crime
reports, citations, arrest records, calls for service, and automated license plate reader data. The
data would be collected and primarily structured through the Northern California Regional
Intelligence Center. Additionally, a Palo Alto-based data integration company, Palantir
City of Palo Alto Page 2
Technologies, Inc., will provide the technology platform to the Northern California Regional
Intelligence Center for use in facilitating data sharing under the MOU.
Resource Impact
There is no cost to the City for participating is this agreement.
Policy Impact
The agreement will result in no policy impact.
Environmental Impact
This is not a project defined under CEQA, and therefore no further action is required.
Attachments:
ATTACHMENT A: Law Enforcement Data Sharing Agreement (PDF)
Page 1 of 5
LAW ENFORCEMENT DATA SHARING
MEMORANDUM OF UNDERSTANDING
THIS MEMORANDUM OF UNDERSTANDING (MOU), made and entered into this
_____ day of _____________, 2014 by and between the Northern California Regional
Intelligence Center (NCRIC), a federal-state-local law enforcement collaborative
program, and the Palo Alto Police Department, a public entity or organization or Public
Safety agency, hereinafter referred to as “Agency,” collectively referred to as “Parties,”
and
WHEREAS, the Parties provide Public Safety services within their jurisdictions; and
WHEREAS, the Parties have found it to be of mutual benefit to provide for the most
efficient utilization of their resources and services in the application to Public Safety
efforts within their jurisdictions; and
WHEREAS, the Parties are committed to complete cooperation and coordination in
providing the highest level of public safety services to the public, guided by the principle
that performing cooperatively is in the best interest of the public; and
WHEREAS, the Agency desires to facilitate the sharing of information contained within
its electronic data systems, including but not limited to: Records Management Systems,
Computer Aided Dispatch Systems, crime reports, arrest records, citations, and
automated license plate reader data, which may include aggregated information collected
from multiple individual or regional sources who have entered into information sharing
agreements; hereinafter referred to as “Data,” using commercially available and custom
developed data integration systems; and
WHEREAS, the Agency desires to share Data owned, aggregated, or collected by the
Agency under the conditions set forth in this MOU; and
NOW, THEREFORE, for and in consideration of the covenants contained herein, the
Parties hereby agree as follows:
Page 2 of 5
AGREEMENT
IT IS HEREBY AGREED, by and between the parties as follows:
1. PURPOSE:
The purpose of this MOU is to provide a standardized approach and method of
collection and sharing of Data, when granted by the contributing AGENCY, between
the Public Safety Agencies in the Counties of Alameda, Contra Costa, Del Norte,
Humboldt, Lake, Marin, Mendocino, Monterey, Napa, San Francisco, Santa Clara,
Santa Cruz, San Benito, San Mateo and Sonoma, through the Northern California
Regional Intelligence Center’s information systems.
2. MISSION:
Northern California Regional Intelligence Center: The NCRIC is a multi-
jurisdictional public safety information fusion center comprised of the Northern
California High Intensity Drug Trafficking Area (NCHIDTA) Investigative Support
Center, Investigative Equipment Program, and the NCRIC Homeland Security
Programs. The NCRIC is managed under the NCHIDTA Executive Board. The
NCRIC was created to assist local, state, federal and tribal public safety agencies and
critical infrastructure locations with the collection, analysis and dissemination of all
crimes threat information. It is the mission of the NCRIC to protect the citizens of
the fifteen Bay Area counties within its area of responsibility from the threat of
narcotics trafficking; organized crime; international, domestic and street terrorism
related activities through information sharing and technical operation support to
public safety agencies.
3. DATA ACCESS AND SECURITY REQUIREMENTS:
a. Data Availability: The NCRIC further agrees to make the shared
information available on a 24-hour a day, 7 days a week basis with
downtime limited to those hours required for any necessary system
maintenance activities. The NCRIC agrees to inform the Agency in
advance, whenever possible, of scheduled system downtimes.
b. Data Sharing: Data contributed by each agency will only be shared on a
need to know and right to know basis with other agencies that have
entered into an MOU with the NCRIC. Both parties agree not to facilitate
information sharing between law enforcement entities that have not
entered into agreements allowing such sharing. Data may also be shared
with representatives and/or employees of the operator of the data sharing
technology platform, subject to adherence with non-disclosure
requirements and other provisions of federal and state law.
Page 3 of 5
c. Security Requirements: The NCRIC and the Agency agree to enforce and
maintain security, retention, and purge requirements for the information
shared through in the NCRIC’s information systems as specified in the
Information Practices Act, the Public Records Act, California Attorney
General’s Model Standards and Procedures for Maintaining Criminal
Intelligence Files and Criminal Intelligence Operational Activities, 28
Code of Federal Regulations (CFR) Part 23, and any other laws or
regulations governing applicable data types. The Agency agrees to use
information shared in the NCRIC’s information systems as a pointer
system and not as the source of probable cause for law enforcement
actions. Exceptions to the above policy shall not be implemented by any
agency without the approval of the NCRIC.
d. Data Access: Agency further agrees that the information contained in the
NCRIC’s information systems shall be used for public safety purposes
only and that only public safety agency employees that have been subject
to background screening will be allowed access to the system. Background
screenings must be fingerprint-based including checks of both the state
and national criminal history repositories. If a felony conviction of any
kind is found, access shall not be granted.
4. BENEFITS TO AGENCY:
a. Data Links: the centralized sharing of Data will provide a solution to the
problem of inaccessible information as result of disconnected systems and
the difficulty in sharing criminal, threat, incident, or other information
across jurisdictional boundaries.
b. Analysis: NCRIC will enable Agency’s public safety personnel to have
access to analytical and de-confliction services provided free of charge to
assist with the analysis of Data.
5. MOU CHANGES:
Any changes and additions to the MOU shall be made by written amendments to this
MOU, and shall not be effective until approved in writing by the Parties. Annually,
or more frequently as requested by the Parties, a joint review of this MOU may
occur to identify needed changes, which may be amended by written mutual
agreement of the Parties.
6. RECORDS AND REPORTS:
a. All NCRIC records generated by those assigned to the NCRIC will be
maintained at the NCRIC office, if they are not otherwise disseminated.
Dissemination of any information from the NCRIC will be done only in
compliance with applicable state and federal laws, standards and
procedures on a need to know and right to know basis.
Page 4 of 5
b. Classified material containing information or security files as defined in
section 6254(f) of the California Government Code will be restricted by
NCRIC and will only be released to other agencies on a need to know
basis.
7. INFORMATION ACCURACY:
Member agencies and authorized users acknowledge that the data maintained in
the NCRIC’s information systems consists of information that may or may not be
accurate. Neither party warrants nor may rely upon the accuracy of such
information. Each party understands and agrees to convey that fact to anyone they
authorize to access shared information. It shall be the responsibility of the person
or entity requesting or using the data to confirm the accuracy of the information
with the agency that authored or originated the information before taking any
enforcement-related action.
8. CUSTODIAN OF RECORDS:
Each agency sharing data retains control and ownership as the official custodian
of its records, and must independently verify all external information obtained via
NCRIC information systems. To the extent permitted by law, requests for
information under the California Public Records Act or Freedom of Information
Act will be directed back to the owner of the requested data.
9. COSTS:
Each party shall be responsible for their own costs associated with establishing,
maintaining, or terminating this data sharing connection. Nothing in this MOU
shall be construed to mean Parties incur new costs. Any applicable user licenses,
renewal, maintenance costs, or similar must be determined in a separate contract
or agreement.
10. DURABILITY:
This MOU shall become operational and effective upon execution by the Parties.
The MOU shall remain for a term of five years, and may be extended by written
amendment of the Agreement. Parties may terminate the MOU Agreement at any
time by giving written notice to the other Parties at least sixty (60) days prior to
the effective date of termination.
11. BENEFITS AND IMMUNITIES:
The Parties shall agree that the provisions of this MOU are not intended to
directly benefit, and shall not be enforceable by any person or entity not a party to
this MOU. This MOU is not intended to confer any legal rights or benefits on any
person or entity other than the Parties of this MOU.
12. INDEMNIFICATIONS:
Notwithstanding the provisions of Government Code Section 895.2, Parties shall
defend, indemnify, and hold harmless every other party and its officers, agents,
employees and representatives from any and all losses, liability, damages, claims,
Page 5 of 5
suits, actions and administrative proceedings, and demands and all expenditures
and cost relating to acts or omissions of the indemnitor, its officers agents or
employees arising out of or incidental to the performance of any of the provisions
of this MOU. Parties do not assume liability for the acts or omissions of persons
other than their respective officers, its employees, agents and officers.
13. SIGNATORIES NOT AGENTS/AUTHORITY TO BIND:
Parties to this MOU shall have no authority, express or implied, to act on behalf
of any signatory in any capacity whatsoever as an agent. The Parties shall have
no authority, express or implied, pursuant to this MOU to bind each other to any
obligation whatsoever. This MOU is executed by the San Mateo County Sheriff
acting in his official capacity as Chief Law Enforcement Agent, fiduciary and
fiscal agent of the Northern California Regional Intelligence Center (NCRIC) and
the Northern California High Intensity Drug Trafficking Area (NCHIDTA).
14. ASSIGNMENT PROHIBITED:
Parties to this MOU may not assign any right or obligation pursuant to this MOU.
Any attempted or purported assignment of any right or obligation pursuant to this
MOU shall be void and of no effect.
IN WITNESS WHEREOF, the parties hereto have executed this MOU on the date as
written below.
Sheriff Greg Munks, DATE
San Mateo County Sheriff’s Office
NC HIDTA Executive Board Vice-Chairman
CHIEF OF POLICE DATE
PALO ALTO POLICE DEPARTMENT
4
5
TY-LIN $173,016
VER Engineering $184,780
The expanded scope includes additional community outreach and provisions for additional
landscape design work above that initially assumed by the consultant team during their
proposal development.
Summary of Key Issues
The Embarcadero Road – Satellite Parking Lot Project is proposed as a parking supply strategy
to augment the University Avenue Downtown parking options. The Embarcadero Road area is
currently serviced by the Embarcadero Shuttle, which is operated and maintained by the
Caltrain Commuter Shuttle Program and offers 20-minute headways during peak hour service
periods. The project currently proposes to provide up to 200 parking spaces through a
combination of parking along Embarcadero Road between Faber Place and the Palo Alto Airport
Driveway and parking within the Baylands Athletic Center (subject to design and environmental
review).
To support the satellite parking lot, the City is exploring the option of taking over the
Embarcadero Shuttle from the Caltrain Commuter Program and operating the route directly.
The City has an active RFP solicitation for Palo Alto Shuttle Program expansion options and
pricing for the operation of the Embarcadero Shuttle will be presented to Council in the fall of
2014, following a headway operations study to determine the appropriate level of service to
best encourage the satellite parking use.
The current phase of the project includes the design and environmental assessment of the
project. The project includes the following details to be verified for feasibility as part of the
design:
90-degree parking along the north side of Embarcadero Road to offer up to 132 parking
spaces.
Traffic Study to evaluate a lane reduction of Embarcadero Road – East of Faber Place
from 4-lanes to 2-lanes to support the 90-degree parking addition.
Retention of bicycle lanes on both sides of the street. The City anticipates offering a
buffered bike lane along the north side of the street in front of the 90-degree parking.
The City will explore the option of converting the south side bike lanes (eastbound
towards the Bay Lands) to a Shared Use Bicycle-Vehicle lane supplemented by Sharrow
roadway markings to offer wider vehicle travel lanes and a wider buffered bicycle lane
on the north side of the street.
Enhanced transit stops with shelters to support shuttle ridership. The City anticipates
the shuttle stops to have multiple uses including Ride Share Stations, Bicycle Service
Stations, and Park ‘n Ride activities.
City of Palo Alto Page 3
Landscape islands to break-up the parking facility and offer tree planting/landscape
opportunities with irrigation controls.
Sidewalk or multi-use path along the north side of Embarcadero Road.
Enhanced bicycle/pedestrian crosswalk at Faber Place to support Bay Trail linkages
across Embarcadero Road
Sharrow roadway marking and bicycle wayfinding signage along Faber Place, Geng Road,
and the Baylands Athletic Center Parking Lot to complete the Bay Trail linkage to San
Francisquito Creek.
The Baylands Athletic Center is scheduled for resurfacing as part of the 2015 Street Resurfacing
Program. The design of the Embarcadero Rd Satellite Parking Lot project will include outreach
to the Parks & Recreation Commission to evaluate the use of the parking lot for additional
satellite parking. The City does not anticipate immediate use of the Baylands Athletic Center
but will continue planning efforts for additional satellite parking expansion as needed. The City
anticipates that up to 68 additional parking spaces for satellite parking activities at the Baylands
Athletic Center can be available when needed.
Policy Implications
Council provided direction at its February 10, 2014 meeting to complete design of the
Embarcadero Rd Satellite Parking Lot project as part of the University Avenue Downtown
parking supply strategies. The use of satellite parking lots to support Downtown operations is
supported through the following Comprehensive Plan – Transportation Element goals:
Policy T-45 Provide sufficient parking in the University Avenue/Downtown and California
Avenue business districts to address long-range needs.
Program T-49 Implement a compehensive program of parking supply and demand
management strategies for Downtown Palo Alto.
Resource Impact
The design phase of the Embarcadero Road Satellite Parking Lot project will cost $180,000,
which includes a 7% contigency. The project will be funded through the existing Capital
Improvement Program (CIP), PL-12000, Parking & Transportation Improvements. Upon
completion of the design phase, staff will return to Council with an update and cost estimate
prior to the release of construction bid documents.
Timeline
The Embarcadero Road Satellite Parking Lot project proposes the following schedule.
RFP Process: Complete
Design: Fall 2014
Environmental: Fall 2014
Construction Start: January 2015 – Pending Funding
City of Palo Alto Page 4
Construction End: April 2015
Environmental Review
The project includes environmental review including a compehensive traffic analysis and an
initial study. A final CEQA document will be presented to the Council upon the completion of
the design phase and prior to funding of capital improvements.
Attachments:
Attachment A: Contract C14153579 with BKF - Draft Contract (PDF)
City of Palo Alto Page 5
Page 1 of 28
CITY OF PALO ALTO CONTRACT NO. C14153579
AGREEMENT BETWEEN THE CITY OF PALO ALTO AND BKF ENGINEERS
FOR PROFESSIONAL SERVICES
This Agreement is entered into on this 16th day of June, 2014, (“Agreement”) by
and between the CITY OF PALO ALTO, a California chartered municipal corporation
(“CITY”), and BKF ENGINEERS, a California corporation, located at 255 Shoreline Drive, Suite 200, Redwood City, California, Telephone (650)482-6300 ("CONSULTANT").
RECITALS
The following recitals are a substantive portion of this Agreement.
A. CITY intends to provide a civil/traffic engineering team to assist with the Embarcadero
Road - Satellite Parking Lot Project (“Project”) and desires to engage a consultant to prepare
plans, specifications & estimates, prepare a traffic impact analysis report; and prepare the
appropriate California Environmental Quality Act (CEQA) documents for the project in connection with the Project (“Services”).
B. CONSULTANT has represented that it has the necessary professional expertise,
qualifications, and capability, and all required licenses and/or certifications to provide the
Services.
C. CITY in reliance on these representations desires to engage CONSULTANT to provide
the Services as more fully described in Exhibit “A”, attached to and made a part of this
Agreement.
NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree:
AGREEMENT
SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit “A” in accordance with the terms and conditions contained in this Agreement. The
performance of all Services shall be to the reasonable satisfaction of CITY.
SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution
through 12/31/2015 unless terminated earlier pursuant to Section 19 of this Agreement.
SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance
of Services under this Agreement. 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
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CONSULTANT. CITY’s agreement to extend the term or the schedule for performance shall
not preclude recovery of damages for delay if the extension is required due to the fault of
CONSULTANT.
SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A”, including both
payment for professional services and reimbursable expenses, shall not exceed One Hundred
Sixty Eighty Thousand Two Hundred Sixty Three Dollars ($168,273.00). In the event Additional
Services are authorized, the total compensation for Services, Additional Services and reimbursable expenses shall not exceed One Hundred Eighty Thousand Dollars ($180,000.00) The applicable rates and schedule of payment are set out in Exhibit “C-1”, entitled “HOURLY
RATE SCHEDULE,” which is attached to and made a part of this Agreement.
Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit “C”. CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean any
work that is determined by CITY to be necessary for the proper completion of the Project, but
which is not included within the Scope of Services described in Exhibit “A”.
SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the services performed and the applicable charges (including an
identification of personnel who performed the services, hours worked, hourly rates, and
reimbursable expenses), based upon the CONSULTANT’s billing rates (set forth in Exhibit “C-
1”). If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT’s payment requests shall be subject to verification by CITY. CONSULTANT shall send all invoices to the City’s project manager at the address specified in
Section 13 below. The City will generally process and pay invoices within thirty (30) days of
receipt.
SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All of the Services shall be 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.
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SECTION 8. ERRORS/OMISSIONS. CONSULTANT shall correct, at no cost to CITY, any
and all errors, omissions, or ambiguities in the work product submitted to CITY, provided CITY
gives notice to CONSULTANT. If CONSULTANT has prepared plans and specifications or other design documents to construct the Project, CONSULTANT shall be obligated to correct any and all errors, omissions or ambiguities discovered prior to and during the course of
construction of the Project. This obligation shall survive termination of the Agreement.
SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds ten percent
(10%) of the CITY’s stated construction budget, CONSULTANT shall make recommendations
to the CITY for aligning the PROJECT design with the budget, incorporate CITY approved
recommendations, and revise the design to meet the Project budget, at no additional cost to CITY.
SECTION 10. INDEPENDENT CONTRACTOR. It is understood and agreed that in
performing the Services under this Agreement CONSULTANT, and any person employed by or
contracted with CONSULTANT to furnish labor and/or materials under this Agreement, shall act as and be an independent contractor and not an agent or employee of the CITY.
SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of
CONSULTANT are material considerations for this Agreement. CONSULTANT shall not
assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s obligations hereunder without the prior written consent of the city manager. Consent to one assignment will not be deemed to be consent to any subsequent assignment. Any
assignment made without the approval of the city manager will be void.
SECTION 12. SUBCONTRACTING. Notwithstanding Section 11 above, CITY agrees that subconsultants may be used to complete the Services. The subconsultants authorized by CITY to
perform work on this Project are:
Alta Planning + Design
100 Webster Street, Suite 300 Oakland, California, 94607
Telephone Number (510)540-5008
Hexagon Transportation Consultants, Inc.
111 W. Saint John Street San Jose, CA. 95113
Telephone, (408) 971-6100
Dudek
201 Mission Street, 12th Floor San Francisco, California, 91355
Telephone (800) 450-1818
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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 13. PROJECT MANAGEMENT. CONSULTANT will assign Janine
O’Flaherty as the Principal in Charge to have supervisory responsibility for the performance,
progress, and execution of the Services and Jason Mansfield as the Project Manager 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 Jaime Rodriguez, Planning & Community Environment Department, Transportation Division, 250 Hamilton Avenue, Palo Alto, CA 94303, Telephone (650) 329-2136. The project manager will be CONSULTANT’s point of contact with respect to
performance, progress and execution of the Services. The CITY may designate an alternate
project manager from time to time.
SECTION 14. OWNERSHIP OF MATERIALS. Upon delivery, all work product, including without limitation, all writings, drawings, plans, reports, specifications, calculations, documents,
other materials and copyright interests developed under this Agreement shall be and remain the
exclusive property of CITY without restriction or limitation upon their use. CONSULTANT
agrees that all copyrights which arise from creation of the work pursuant to this Agreement shall be vested in CITY, and CONSULTANT waives and relinquishes all claims to copyright or other intellectual property rights in favor of the CITY. Neither CONSULTANT nor its contractors, if
any, shall make any of such materials available to any individual or organization without the
prior written approval of the City Manager or designee. CONSULTANT makes no
representation of the suitability of the work product for use in or application to circumstances not
contemplated by the scope of work.
SECTION 15. AUDITS. CONSULTANT will permit CITY to audit, at any reasonable time
during the term of this Agreement and for three (3) years thereafter, CONSULTANT’s records
pertaining to matters covered by this Agreement. CONSULTANT further agrees to maintain and
retain such records for at least three (3) years after the expiration or earlier termination of this Agreement.
SECTION 16. INDEMNITY.
16.1. To the fullest extent permitted by law, CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an
“Indemnified Party”) from and against any and all demands, claims, or liability of any nature,
including death or injury to any person, property damage or any other loss, including all costs
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and expenses of whatever nature including attorneys fees, experts fees, court costs and
disbursements (“Claims”) that arise out of, pertain to, or relate to the negligence, recklessness, or
willful misconduct of the CONSULTANT, its officers, employees, agents or contractors under
this Agreement, regardless of whether or not it is caused in part by an Indemnified Party.
16.2. Notwithstanding the above, nothing in this Section 16 shall be construed
to require CONSULTANT to indemnify an Indemnified Party from Claims arising from the
active negligence, sole negligence or willful misconduct of an Indemnified Party.
16.3. The acceptance of CONSULTANT’s services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall
survive the expiration or early termination of this Agreement.
SECTION 17. WAIVERS. The waiver by either party of any breach or violation of any covenant, term, condition or provision of this Agreement, or of the provisions of any ordinance or law, will not be deemed to be a waiver of any other term, covenant, condition, provisions,
ordinance or law, or of any subsequent breach or violation of the same or of any other term,
covenant, condition, provision, ordinance or law.
SECTION 18. INSURANCE.
18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in
full force and effect during the term of this Agreement, the insurance coverage described in
Exhibit "D". CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies.
18.2. All insurance coverage required hereunder shall be provided through
carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in
full force and effect during the term of this Agreement, identical insurance coverage, naming
CITY as an additional insured under such policies as required above.
18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the
approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is
primary coverage and will not be canceled, or materially reduced in coverage or limits, by the
insurer except after filing with the Purchasing Manager thirty (30) days' prior written notice of
the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONSULTANT, CONSULTANT shall provide the
Purchasing Manager written notice of the cancellation or modification within two (2) business
days of the CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for
ensuring that current certificates evidencing the insurance are provided to CITY’s Purchasing
Manager during the entire term of this Agreement.
18.4. The procuring of such required policy or policies of insurance will not be
construed to limit CONSULTANT's liability hereunder nor to fulfill the indemnification
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provisions of this Agreement. Notwithstanding the policy or policies of insurance,
CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss
caused by or directly arising as a result of the Services performed under this Agreement,
including such damage, injury, or loss arising after the Agreement is terminated or the term has expired.
SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES.
19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. Upon receipt of such notice, CONSULTANT will
immediately discontinue its performance of the Services.
19.2. CONSULTANT may terminate this Agreement or suspend its performance of the Services by giving thirty (30) days prior written notice thereof to CITY, but only in the event of a substantial failure of performance by CITY.
19.3. Upon such suspension or termination, CONSULTANT shall deliver to the
City Manager immediately any and all copies of studies, sketches, drawings, computations, and other data, whether or not completed, prepared by CONSULTANT or its contractors, if any, or given to CONSULTANT or its contractors, if any, in connection with this Agreement. Such
materials will become the property of CITY.
19.4. Upon such suspension or termination by CITY, CONSULTANT will be paid for the Services rendered or materials delivered to CITY in accordance with the scope of services on or before the effective date (i.e., 10 days after giving notice) of suspension or
termination; provided, however, 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.
19.5. No payment, partial payment, acceptance, or partial acceptance by CITY
will operate as a waiver on the part of CITY of any of its rights under this Agreement.
SECTION 20. NOTICES.
All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows:
To CITY: Office of the City Clerk
City of Palo Alto
Post Office Box 10250 Palo Alto, CA 94303
With a copy to the Purchasing Manager
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To CONSULTANT: Attention of the project director
at the address of CONSULTANT recited above
SECTION 21. CONFLICT OF INTEREST.
21.1. In accepting this Agreement, CONSULTANT covenants that it presently
has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which
would conflict in any manner or degree with the performance of the Services.
21.2. CONSULTANT further covenants that, in the performance of this
Agreement, it will not employ subconsultants, contractors or persons having such an interest.
CONSULTANT certifies that no person who has or will have any financial interest under this
Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California.
21.3. If the Project Manager determines that CONSULTANT is a “Consultant”
as that term is defined by the Regulations of the Fair Political Practices Commission, CONSULTANT shall be required and agrees to file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act.
SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section
2.30.510, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status,
familial status, weight or height of such person. CONSULTANT acknowledges that it has read
and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to
Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment.
SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO
WASTE REQUIREMENTS. CONSULTANT shall comply with the City’s Environmentally
Preferred Purchasing policies which are available at the City’s Purchasing Department,
incorporated by reference and may be amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of the City’s Zero Waste
Program. Zero Waste best practices include first minimizing and reducing waste; second,
reusing waste and third, recycling or composting waste. In particular, Consultant shall comply
with the following zero waste requirements:
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
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limited to Extended Producer Responsibility requirements for products and
packaging. A copy of this policy is on file at the Purchasing Office.
Reusable/returnable pallets shall be taken back by the Consultant, at no additional cost to the City, for reuse or recycling. Consultant shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed.
SECTION 24. NON-APPROPRIATION
24.1. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any
penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the
following fiscal year, or (b) at any time within a fiscal year in the event that funds are only
appropriated for a portion of the fiscal year and funds for this Agreement are no longer available.
This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement.
SECTION 25. MISCELLANEOUS PROVISIONS.
25.1. This Agreement will be governed by the laws of the State of California.
25.2. In the event that an action is brought, the parties agree that trial of such
action will be vested exclusively in the state courts of California in the County of Santa Clara,
State of California.
25.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys' fees expended in connection with that
action. The prevailing party shall be entitled to recover an amount equal to the fair market value
of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third
parties.
25.4. This document represents the entire and integrated agreement between the
parties and supersedes all prior negotiations, representations, and contracts, either written or oral.
This document may be amended only by a written instrument, which is signed by the parties.
25.5. The covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators, assignees, and
consultants of the parties.
25.6. If a court of competent jurisdiction finds or rules that any provision of this
Agreement or any amendment thereto is void or unenforceable, the unaffected provisions of this Agreement and any amendments thereto will remain in full force and effect.
25.7. All exhibits referred to in this Agreement and any addenda, appendices,
attachments, and schedules to this Agreement which, from time to time, may be referred to in
any duly executed amendment hereto are by such reference incorporated in this Agreement and will be deemed to be a part of this Agreement.
25.8 If, pursuant to this contract with CONSULTANT, City shares with
CONSULTANT personal information as defined in California Civil Code section 1798.81.5(d)
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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.
25.9 All unchecked boxes do not apply to this agreement.
25.10 The individuals executing this Agreement represent and warrant that they
have the legal capacity and authority to do so on behalf of their respective legal entities.
25.11 This Agreement may be signed in multiple counterparts, which shall, when
executed by all the parties, constitute a single binding agreement
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____________________________
__________________________
Page 10 of 28
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 BKF ENGINEERS
By:___________________________
City Manager
Name:_________________________
APPROVED AS TO FORM:
Title:________________________
Senior Asst. City Attorney
Attachments:
EXHIBIT “A”: SCOPE OF WORK
EXHIBIT “B”: SCHEDULE OF PERFORMANCE
EXHIBIT “C”: COMPENSATION EXHIBIT “C-1”: SCHEDULE OF RATES EXHIBIT “D”: INSURANCE REQUIREMENTS
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EXHIBIT “A” SCOPE OF SERVICES
Task 1: Project Initiation and Project Management
The CONSULTANT shall manage the project to ensure completion within the adopted
budget and schedule. The CONSULTANT shall coordinate with subconsultants and value
engineer alternatives to meet the City’s goals. Through the CONSULTANT’s quality control
procedures, the CONSULTANT shall review plans to meet applicable standards and reduce potential for construction issues.
The CONSULTANT shall participate in a kickoff meeting to confirm task elements, roles,
project schedule, and the proposed public outreach plan. The CONSULTANT shall attend a
team site visit to investigate the corridor and key focus/challenge areas, and shall synthesize and share background and planning information to support development of the preliminary design alternatives.
The CONSULTANT should be available for monthly project coordination meetings and provide the City will with a weekly project update regarding design status.
Task 2: Topographic Survey
The CONSULTANT shall complete an aerial topographic and planimetric survey at a
scale of 1” = 20’ with one foot contours for the project area to allow for engineering efforts. The aerial topographic survey will be tied to the City of Palo Alto Benchmark
System. The aerial survey will be based on 11 horizontally and vertically controlled
ground targets. The CONSULTANT shall then complete analytical aerotriangulation to
densify the ground control prior to stereo-compilation of planimetry, terrain data, and
generation of one foot contours. The aerial mapping will be assembled and delivered at a mapping scale of 1”=20’. The CONSULTANT shall also deliver a high resolution
orthorectified color photograph with a 0.2’ pixel resolution of the site for use in planning,
engineering and community outreach efforts.
The CONSULTANT shall complete a ground topographic survey to augment the aerial
survey described above for the Embarcadero/Faber Place intersection. This survey will include all improvements including surface evidence of utilities and invert information for gravity systems (storm drain and sewer).
The CITY may have existing topographic surveys available for the CONSULTANT.
During the project kickoff meeting, any available city survey data will be made available
to determine if the Scope of Work for this Task may be reduced.
Task 3: Concept Plan Line Drawings
The CONSULTANT shall assist in the development of up to two project concept alternatives
for consideration by the community and City. These conceptual design (10%) alternatives shall include options for pedestrian and bicycle accommodations and various shuttle
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enhancement elements along the Embarcadero Road corridor, Faber Place, and Geng
Road/Palo Alto Athletic Center parking lot. Plans will be developed using aerial imagery and
survey/topographic information at a scale of 1” = 40’ with accompanying sections and detail
illustrations as necessary to communicate substantial elements, impacts, and challenges/opportunities.
The CONSULTANT shall prepare up to two (2) photo-simulations to visually communicate
the proposed alternatives. The CONSULTANT shall discuss the proposed alternatives with
the City during the kickoff meeting, or within 30-calendar days of the project Notice to Proceed to confirm the recommended roadway alignments are acceptable to the City. Any work prepared prior to the Notice to Proceed issuance or prepared without city authorization
for concept approval will not be considered billable work as part of this project.
Task 4: Traffic Impact Analysis
The CONSULTANT shall prepare a Traffic Impact Analysis (TIA) for this project to determine
whether the 4-lane to 2-lane reduction proposed in the City concept plan line for this project is
feasible and to help identify any appropriate mitigation measures. The TIA shall include both an
Intersection Level of Service analysis, Street Link (V/C) Level of Service analysis, queuing analysis where merge points occur, and a general traffic operations analysis with an emphasis on motorist weaving and pedestrian/bicycle interaction on the proposed roadway configuration. The TIA shall
feed into the appropriate California Environmental Quality Act (CEQA) analysis for the project.
Study Intersections
1. Embarcadero Road and East Bayshore Road
2. Embarcadero Road and Geng Road-Faber Place
Study Freeway Segments
1. US 101 between San Antonio Avenue and Oregon Expressway
2. US 101 between Oregon Expressway and Embarcadero Road
3. US 101 between Embarcadero Road and University Avenue
Study Freeway Ramps
1. EB Oregon Expressway to NB US 101
2. SB US 101 to EB Embarcadero Road
3. WB Embarcadero Road to SB US 101
4. NB US 101 to EB Embarcadero Road 5. WB Embarcadero Road to NB US 101
6. SB US 101 to WB Oregon Expressway
Study Arterial Roadway Segment
1. Embarcadero Road between Geng Road and Faber Place
2. Embarcadero Road between Faber Place and Bay Lands entrance
3. Geng Road between Embarcadero Road and Bay Lands Athletic Center Parking Lot
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The subtasks to be included in the TIA development for the project are:
4.1. Site Reconnaissance and Existing Observations. The physical characteristics of the study area and the surrounding roadway network will be reviewed to identify existing roadway cross-sections, intersection lane configurations, traffic control devices, and
surrounding land uses. Existing traffic conditions will be observed in the field during the AM
and PM peak periods of traffic in order to identify any operational deficiencies and to
confirm the accuracy of calculated levels of service.
4.2. Data Collection. New AM and PM peak-hour traffic counts will be conducted at both
key study intersections. Mechanical tube counts will be conducted over a seven day period to
measure the average daily weekday and weekend traffic volumes on the study roadway
segment. In addition, hourly parking occupancy surveys will be conducted at the Baylands Athletic Center parking lot and Embarcadero Road between Geng Road and the Palo Alto Airport Driveway on a typical weekday between the hours of 9 AM and 5 PM to quantify the
usage of the existing parking spaces. Freeway segment traffic counts will be obtained from
the latest VTA CMP monitoring report. Interchange ramp counts will be obtained from
Caltrans. All new traffic counts and will include bicycle and pedestrian volumes. The CONSULTANT must receive written authorization from the City prior to the collection of additional traffic data.
4.3. Evaluation of Existing Conditions. The existing operations of the key intersections and
freeway segments will be evaluated with a level of service analysis using current AM and PM peak-hour volumes. All intersections will be evaluated using TRAFFIX software in accordance with the 2000 Highway Capacity Manual methodology. Study freeway segments
will be analyzed in accordance with VTA CMP methods and study freeway ramps and
arterial roadway segments will be analyzed using demand to capacity ratios.
4.4. Evaluation of Background Conditions. A list of approved projects, including the recently approved Palo Alto Golf Course Reconfiguration Project, will be obtained from City
of Palo Alto staff. Based on this data, the background no project traffic volumes will be
calculated. Planned and funded improvements will be included in the background analysis.
Level of service calculations will be performed to evaluate background conditions at study
intersections. Study freeway ramps and arterial roadway segments will be analyzed using demand to capacity ratios.
4.5. Site Traffic Projections. The incremental increase in traffic resulting from the proposed
satellite parking facility will be estimated in consultation with City staff based on the
proposed number of satellite parking spaces and existing parking usage patterns within Downtown Palo Alto. The directional distribution of project trips will be forecast based on
existing travel patterns and available information regarding the residence locations of
Downtown employees. The project-generated traffic will be assigned to the roadway network
based on the directions of approach and departure.
4.6. Evaluation of Project Conditions. Project-generated traffic will be added to (1)
existing and (2) background traffic volumes. Intersection level of service calculations will be
conducted to estimate the operating levels of service at the key intersections during the AM
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and PM peak hours after the completion of the proposed satellite parking facility. Study
freeway segments will be analyzed in accordance with VTA CMP methods and study
freeway ramps and arterial roadway segments will be analyzed using demand to capacity
ratios.
4.7. Parking Impacts. The project proposes to use a portion of the existing Baylands
Athletic Center parking lot as satellite parking for Downtown employees, either immediately
or as a future expansion of the satellite parking lot operations. The potential parking impacts
caused by this element of the project will be evaluated based on the results of the parking occupancy survey conducted in task 2.
4.8. Pedestrian, Bicycle, & Transit Access. The CONSULTANT shall will review and
comment on draft plan line concepts prepared by the team to ensure that the proposed
satellite parking facilities have safe and convenient access to all modes of transportation, including pedestrians, bicycles, and transit services. Improvements may include new pedestrian connections, sharrow markings, signage, flashing beacons, enhanced crosswalks,
and transit stop facilities. In addition, to enhance the safety of motorists using the on-street
satellite parking lot, appropriate traffic calming measures will be proposed to reduce the
speed of traffic in the adjacent through lanes on Embarcadero Road.
4.9. Evaluation of Cumulative Conditions. The CONSULTANT recently updated the City
of Palo Alto’s travel demand forecast model as part of the Comprehensive Plan update.
Cumulative no project traffic volumes for the intersection of Embarcadero Road and East
Bayshore Road will be obtained from the available year 2035 model forecasts and provide the data to the City for written confirmation of use for the TIA. Cumulative no project traffic volumes for the intersection of Embarcadero Road and Geng Road-Faber Place will be
derived based on the traffic volume forecast at the adjacent intersection. Project trips will be
added to cumulative no project traffic volumes to estimate cumulative plus project traffic
volumes. Level of service calculations will be conducted to estimate the operating levels of the study intersections during the AM and PM peak hours under cumulative conditions. If a significant cumulative impact occurs at any study location, the CONSULTANT shall
quantify the project’s contribution to the impact.
4.10. Description of Impacts and Recommendations. Based on the results of the level of
service calculations, impacts will be identified and described. Recommendations will be formulated that identify the locations and types of improvements or modifications necessary
to mitigate significant near term or cumulative impacts. Mitigation associated with any
individual and/or cumulative project impacts will be described.
4.11. Meetings & Reports. This work scope includes attendance at four meetings with project staff or City staff in connection with this project. Of these four meetings, three of
these may be public hearings. The CONSULTANT’s findings and recommendations will be
summarized in an administrative draft report. The CONSULTANT shall respond to
administrative draft editorial comments and prepare a final report.
Task 5: Environmental Assessment
The CONSULTANT shall prepare the environmental assessment. The assessment will be
Professional Services Rev. Feb. 2014
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comprised of two subtasks: the Initial Study and the Mitigated Negative Declaration.
5.1 – Prepare and Process an Initial Study
The CONSULTANT shall incorporate specific project information into a project description in accordance with CEQA. Additional information necessary for the project description may
include: type of equipment, truck trip estimates, disturbance (staging) areas, disposal
location, maintenance history, and, implementation schedule. The CONSULTANT shall
develop this CEQA draft project description to clearly describe in text and figures the proposed project. The CONSULTANT shall submit a draft project description for review and comments and will incorporate comments as appropriate. The CONSULTANT’s
proposed scope of work assumes one round of comments. The draft project description will
provide the foundation for the Initial Study impact analysis.
Using the City’s established format, the CONSULTANT shall prepare an Initial Study to identify potential environmental issues, provide a preliminary assessment of potential impact
significance, and identify mitigations to address potential significant effects. The document
will include a Project Background and Purpose, a Project Description, the Environmental
Checklist, an explanation of the checklist, and References and Sources. It will contain appropriate graphics showing project locations.
It is expected that the project would have no impact or a less than significant impact on:
• Agricultural and Forest Resources; • Hazards and Hazardous Materials; • Recreation;
• Hydrology and Water Quality;
• Mineral Resources; and
• Population and Housing.
If the City chooses to share this draft with other entities (i.e., regulatory agencies), comments
from the various entities shall be consolidated into one set of non-contradictory set of
comments for review and revision.
Deliverables: • Administrative Draft Initial Study (electronic).
5.2 – Prepare and Process Mitigated Negative Declaration
Based on the information, criteria, and analyses developed in Task 1 above, the CONSULTANT shall consult with the City to confirm the current assumption that an
IS/MND will be the appropriate compliance document for this project. However, should
information developed under Task 1 and consultation with the City identify that an EIR is the
appropriate compliance document, the CONSULTANT shall coordinate with the City to
determine additional scope and budget needs.
Using the City’s established format, the CONSULTANT shall prepare an administrative draft
IS/MND, a public review draft IS/MND, the Notice of Intent (NOI) and Notice of
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Completion (NOC). The CONSULTANT shall also prepare a Mitigation and Monitoring
Reporting Plan (MMRP). This document will incorporate the MND mitigation measures, and
identify the parties responsible for implementing mitigation measures, as well as the timing
of implementation.
The CONSULTANT, with assistance from the City, shall develop a distribution list and will
also distribute the allocated copies to local and regional agencies and interested parties. The
CONSULTANT shall be responsible for posting the NOI with the county clerk. The
CONSULTANT shall prepare 15 copies of the document for public circulation, and will deliver electronic copies to the State Clearinghouse. The CONSULTANT shall prepare a notice for publication for a local newspaper to be filed by the City.
Following public review, the CONSULTANT shall prepare a final IS/MND which will
include a complete Response to Comments received. This scope assumes no more than 40 individual comments will be received, however the scope can be adjusted if this estimate is not correct.
Deliverables:
• Administrative Draft IS/MND (electronic); • Screen check IS/MND (electronic); NOC (1 original);
• Public review draft IS/MND (15 copies); Distribution list (electronic); Delivery of
electronic copies to the State Clearinghouse; Delivery of remaining copies to parties on
distribution list; Newspaper notice. • Final IS/MND • Notice of Intent to Adopt MND
Task 6: Community Outreach
The CONSULTANT shall lead the community outreach effort.
6.1 - Develop Public Outreach Materials/Notices
The CONSULTANT shall prepare detailed agendas and provide expert graphic design
services (in the form of posters, mailers, fliers, comment cards, and meeting presentation materials). The CONSULTANT shall also assist in preparation of PPT slides for City
meetings.
6.2 - Community/City Meetings
The CONSULTANT shall assist in presenting initial plan line alternatives to key
stakeholders and attend/facilitate up to two (2) public outreach meetings. It is anticipated that
the first public meeting is to focus on the preliminary design concepts, and possible second
public meeting to confirm the preferred alternative and initial environmental findings.
City review meetings will include one (1) Planning and Transportation Commission meeting,
one (1) Parks & Recreation Commission meeting, and one (1) City Council study session (a
total of 3 meetings). The CONSULTANT shall prepare graphic display boards and assist
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with development and presentation of a Powerpoint at each of these meetings as appropriate.
The CONSULTANT shall also serve as scribe for all community and stakeholder meetings,
and will provide meeting notes and action item summaries within 5 business days of each
meeting. The CONSULTANT shall also maintain a project contact list throughout the project based on meeting attendee information and other contacts provided by others.
Task 7: Final PS&E
Plans, specifications, and estimates will be prepared to include:
Slurry or microseal plan for the project limits Microsurfacing has been a popular treatment that has been specified on a few recent
projects. This treatment will provide a significant base to obscure existing markings and
provide a “clean slate” for new markings. It will also sustain the higher impact of tight
turning vehicles for the proposed parking spaces.
Pedestrian Crossing Alternatives
The Plan Line Alternatives prepared by the CONSULTANT shall propose alternatives to help enhance the crosswalk options at Embarcadero Road & Geng Road-Faber Place.
The CONSULTANT shall evaluate bulb-out or median island alternatives for the
intersection. Upon approval of a preferred Plan Line Alternative, improvement plans for
the preferred alternative shall be prepared.
Signage & striping plans The improvement plans shall include a detailed Signage & Striping Plan for Embarcadero
Road between East Bayshore Road to the Bay Lands, Faber Place between the Bay Trail
and Embarcadero Road, and Geng Road between Embarcadero Road and San
Francisquito Creek. The Signage & Striping Plan shall identify the location and dimensions of new parking spaces, bicycle lanes, Sharrows, bicycle route signage & wayfinding, parking restrictions, and motorist’s destination signage.
Quantity and Engineer’s Estimates
The CONSULTANT shall provide quantity and engineer’s estimates during each
submittal stage of the project to help the City budget resources for construction.
Drainage analysis and modifications The CONSULTANT shall prepare improvement plans that accommodate existing
drainage conditions and proposed roadway modifications to parking lot or
pedestrian/bicycle facilities.
Traffic Calming Measures The improvement plans shall include details for the installation of Speed Tables or Humps, intersection bulb-outs, and median islands. The CONSULTANT shall evaluate and design alterations needed to accommodate these changes.
Pedestrian Facilities
The CONSULTANT shall identify and prepare improvement details for pedestrian facilities to help route pedestrians through the project area, from their parked vehicles to sidewalks/transit facilities, and ensure appropriate Americans with Disabilities Act
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(ADA) compliance for the project.
Traffic Signal Modification Plans
It is anticipated that a new Flashing Beacon Warning system will need to be
installed at Embarcadero Road & Geng Road-Faber Place. The beacon will be
pedestrian-activated and allow for passive bicycle detection. The CONSULTANT shall prepare a traffic signal modification improvement plan to power and accommodate the beacon system from the existing Embarcadero Road
& Geng Road intersection. The flashing beacon shall include double-sided
elements at each pole location including 12-inch amber LED, LED-embedded
pedestrian warning sign, and a Rectangular Rapid Flashing Beacon system. The
CONSULTANT shall coordinate with the City’s traffic signal controller vendor to identify any modifications required to properly activate the new Flashing Beacon
Warning System and provide details, including recommended flashing durations,
and include details into the project for construction.
Landscape and irrigation plans It is anticipated that landscaped islands within the new on-street satellite parking facilities will be provided to properly integrate the satellite parking lot facility into the
surrounding Embarcadero Road environment. The CONSULTANT shall prepare
landscape and irrigation details for the project based on the approved Concept Plan Line alternative. An effort will be made to choose low-water use trees/shrubs that are suitable for the surrounding landscape and climate. Details will cover installation, including material selections, and placement. Irrigation will also be included in a separate plan. A
water connection and power for the controller will be established.
Planting design along the parking lot will be shown on a separate planting plan. Planting
is assumed to only include trees/shrubs placed in tree grates or medians/bulbouts along the length of the parking lot.
Development of specifications and special provisions for the project Deviations from the City Standard Specifications will be identified and developed
for inclusion within the overall bid document. The CONSULTANT shall work
with the City to incorporate these into the City’s boilerplate.
Engineer’s estimate The CONSULTANT shall prepare an Engineer’s Estimate during each submittal stage of the project.
Submittal Periods: 65%, Final Check Print, and 100% Bid Set The CONSULTANT shall provide submittals at the 65% and 100% levels.
Submittals will be PDF and hardcopy as needed or requested. The
CONSULTANT shall incorporate the City’s, design team’s, and other
stakeholder’s comments at each stage and provide a written response to each comment for tracking purposes. Upon approval of the 100% Bid Set, the
CONSULTANT shall provide the City with original design files for the project
(.DWG or .DGN for CAD files, .DOC for Specifications, Special Provisions, and
project report; .PPT for Powerpoint presentations; and original Adobe or drawing
format of illustrations prepared for the project). All files shall be become public record documents owned by the City of Palo Alto.
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Task 8: Bid and Construction Support
The CONSULTANT shall attend a pre-bid meeting that will be held at the City’s
offices. If necessary, addenda will be issued to the contractors clarifying any issues that may need clarification on the plans after the pre-bid meeting. If requested, The CONSULTANT shall prepare bid summaries of the bids received for use by the City.
The CONSULTANT shall conduct a pre-construction meeting, respond to RFI’s, assist
in shop drawing review, and have budgeted up to 4 site meetings to review issues and assist the City in the punch list review when the project approaches completion. The CONSULTANT shall also include some time for assisting the City staff in construction
administration if necessary.
The CONSULTANT shall provide a budget amount for construction support services. Because the engineering effort required during construction depends in large part on the contractor selected to construct the project, and can only be estimated in advance, the
CONSULTANT shall work with the City on a time and materials basis for construction
services. It is recommended that a budget be established for services as indicated on
the attached fee proposal.
The CONSULTANT shall provide Record Drawings based on contractor’s mark-ups
and a cursory site visit after construction is complete.
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EXHIBIT “C” COMPENSATION
The CITY agrees to compensate the CONSULTANT for professional services performed
in accordance with the terms and conditions of this Agreement, and as set forth in the
budget schedule below. Compensation shall be calculated based on the hourly rate
schedule attached as exhibit C-1 up to the not to exceed budget amount for each task set forth below.
The compensation to be paid to CONSULTANT under this Agreement for all services
described in Exhibit “A” (“Basic Services”) and reimbursable expenses shall not exceed
$168,273.00. In the event CITY authorizes any Additional Services, the maximum compensation shall not exceed $180,000.00. Any work performed or expenses incurred
for which payment would result in a total exceeding the maximum amount of
compensation set forth herein shall be at no cost to the CITY.
CONSULTANT shall perform the tasks and categories of work as outlined and budgeted below. The CITY’s Project Manager may approve in writing the transfer of budget
amounts between any of the tasks or categories listed below provided the total
compensation for Basic Services, including reimbursable expenses, does not exceed
$168,273.00 and the total compensation for Additional Services does not exceed
$11,727.00.
BUDGET SCHEDULE NOT TO EXCEED AMOUNT
Task 1 $9,307.00
(Project Management)
Task 2 $18,262.00
(Topographic Survey Including Aerial Survey)
Task 3 $4,681.00
(Concept Plan Drawings)
Task 4 $1,935.00 (Community Outreach)
Task 5 $31,182.00
(Final PS&E)
Task 6 $7,642.00
(Bid & Construction Support)
Task 7 $93,764.00 (Subconsultants)
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Sub-total Basic Services $ 166,773.00
Reimbursable Expenses $1,500.00
Total Basic Services and Reimbursable expenses $168,273.00
Additional Services (Not to Exceed) $11,727.00
Maximum Total Compensation $180,000.00
REIMBURSABLE EXPENSES
The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are
included within the scope of payment for services and are not reimbursable expenses.
CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost.
Expenses for which CONSULTANT shall be reimbursed are:
Travel outside the San Francisco Bay area, including transportation and meals, will be
reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of
travel and meal expenses for City of Palo Alto employees.
All requests for payment of expenses shall be accompanied by appropriate backup
information. Any expense anticipated to be more than $1500.00 shall be approved in
advance by the CITY’s project manager.
ADDITIONAL SERVICES
The CONSULTANT shall provide additional services only by advanced, written
authorization from the CITY. The CONSULTANT, at the CITY’s project manager’s
request, shall submit a detailed written proposal including a description of the scope of
services, schedule, level of effort, and CONSULTANT’s proposed maximum compensation, including reimbursable expense, for such services based on the rates set forth in Exhibit C-1. The additional services scope, schedule and maximum
compensation shall be negotiated and agreed to in writing by the CITY’s Project
Manager and CONSULTANT prior to commencement of the services. Payment for
additional services is subject to all requirements and restrictions in this Agreement
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EXHIBIT "C1" HOURLY RATE SCHEDULE
Principal Proj Manager [1] Engineer II [2] 2-Person Survey Crew Surveyor II Subtotal
Janine O'Flaherty Jason Mansfield Cuong Tran Ryan Borger
Task Description
@ $209 @ $172 @ $129 @ $241 @ $129
hrs $'s hrs $'s hrs $'s hrs $'s hrs $'s hrs $'s
1.0 PROJECT MANAGEMENT
1.1 Project coordination & tracking --$ 8.0 1,376.00$ --$ --$ --$ 8.0 1,376.00$
1.2 QA/QC 2.0 418.00$ 8.0 1,376.00$ --$ --$ --$ 10.0 1,794.00$
1.3 Meetings, agendas, and minutes 2.0 418.00$ 24.0 4,128.00$ 3.0 387.00$ --$ --$ 29.0 4,933.00$
1.4 Kick-off meeting -$ 4.0 688.00$ 4.0 516.00$ --$ --$ 8.0 1 204.00$
1.0 Subtotal 4.0 836.00$ 44.0 7,568.00$ 7.0 903.00$ --$ --$ 55.0 9,307.00$ 2.0 TOPOGRAPHIC SURVEY
2.1 Ground control for aerial --$ 2.0 344.00$ 2.0 258.00$ 16.0 3,856.00$ 20.0 2,580.00$ 40.0 7,038.00$
2.2 Topographic ground survey --$ 2.0 344.00$ --$ 4.0 964.00$ 4.0 516.00$ 10.0 1,824.00$ 2.0 Subtotal --$ 4.0 688.00$ 2.0 258.00$ 20.0 4,820.00$ 24.0 3,096.00$ 50.0 8,862.00$
3.0 CONCEPT PLAN LINE DRAWINGS
3.1 Conceptual Drawings 1.0 209.00$ 8.0 1 376.00$ 24.0 3 096.00$ --$ --$ 33.0 4 681.00$
3.0 Subtotal 1.0 209.00$ 8.0 1,376.00$ 24.0 3,096.00$ --$ --$ 33.0 4,681.00$ 4.0 TRAFFIC IMPACT ANALYSIS
4.1 Existing observations --$ --$ --$ -$ --$ --$
4.2 Data collection --$ --$ --$ -$ --$ --$
4.3 Evaluation of existing conditions --$ --$ --$ --$ --$ --$
4.4 Evaluation of background conditions --$ --$ --$ -$ --$ --$
4.5 Site traffic projections --$ --$ --$ -$ --$ --$
4.6 Evaluation of project conditions --$ --$ --$ --$ --$ --$
4.7 Parking impacts --$ --$ --$ --$ --$ --$
4.8 Pedestrian, bicycle, & transit access --$ --$ --$ -$ --$ --$
4.9 Evaluation of cumulative conditions --$ --$ --$ -$ --$ --$
4.10 Description of impacts and recommendations --$ --$ --$ --$ --$ --$
4.11 Meetings and reports --$ --$ --$ --$ --$ --$
4.0 Subtotal --$ --$ --$ --$ --$ --$
5.0 ENVIRONMENTAL ASSESSMENT
5.1 Initial study --$ --$ --$ --$ --$ --$
5.2 MND --$ --$ --$ --$ --$ --$
5.0 Subtotal --$ --$ --$ --$ --$ --$ 6.0 COMMUNITY OUTREACH
6.1 Outreach materials/notices -$ --$ 4.0 516.00$ -$ --$ 4.0 516.00$
6.2 Community/City meetings --$ 6.0 1,032.00$ 3.0 387.00$ -$ --$ 9.0 1,419.00$ 6.0 Subtotal --$ 6.0 1,032.00$ 7.0 903.00$ --$ --$ 13.0 1,935.00$
7.0 FINAL PS&E
7.1 65% Plans and Estimates 3.0 627.00$ 24.0 4,128.00$ 104.0 13,416.00$ -$ --$ 131.0 18,171.00$
7.2 100% PS&E 3.0 627.00$ 24.0 4 128.00$ 64.0 8 256.00$ -$ --$ 91.0 13 011.00$
7.0 Subtotal 6.0 1,254.00$ 48.0 8,256.00$ 168.0 21,672.00$ --$ --$ 222.0 31,182.00$
8.0 BID AND CONSTRUCTION SUPPORT
8.1 Bid support --$ 2.0 344.00$ 8.0 1,032.00$ --$ --$ 10.0 1,376.00$
8.2 Construction support 2.0 418.00$ 4.0 688.00$ 40.0 5,160.00$ --$ --$ 46.0 6,266.00$
8.0 Subtotal 2.0 418.00$ 6.0 1,032.00$ 48.0 6,192.00$ --$ --$ 56.0 7,642.00$
Subtotal 63,609.00$
Reimbursables $1,500.00
Subconsultant totals $85 240.00
Subconsultant mark-up $8,524.00
Aerial topographic survey $9,400.00
Additional Services Budget $11,727.00
Total 180,000.00$
[1] Project Manager role may also be served by: Michael Shoup (survey Project Manager) or Yousef Moradzadeh (QC/constructibility)
[2] Engineer II role may also be served by: others as needed to project needs
[3] Assumes project scope remains similar to initial concept. Expanded project limits may require revisiting the number of hours required.
Page 24 of 28
EXHIBIT "C1" HOURLY RATE SCHEDULE
Hexagon Transportation Consultants, Inc.
President Principal Assoc. Associate II Technician Administrative/ Subtotal
Grahpics
Task Description
@ $245 @ $200 @ $150 @ $65 @ $95
hrs $'s hrs $'s hrs $'s hrs $'s hrs $'s hrs $'s
1.0
1.1
1.2
1.3
1.4
2.0
2.1
2.2
3.0
3.1
4.0 TRAFFIC IMPACT ANALYSIS
4.1 Existing observations -$ --$ -4.0 $ 600.00 $ --$ -4.0 $ 600.00
4.2 Data collection -$ --$ -2.0 $ 300.00 2.0 $ 130.00 -$ -4.0 $ 430.00
4.3 Evaluation of existing conditions -$ -2.0 $ 400.00 6.0 $ 900.00 -$ --$ -8.0 $ 1,300.00
4.4 Evaluation of background conditions -$ -2.0 $ 400.00 8.0 $ 1,200.00 $ --$ -10.0 $ 1,600.00
4.5 Site traffic projections 1.0 $ 245.00 2.0 $ 400.00 2.0 $ 300.00 $ --$ -5.0 $ 945.00
4.6 Evaluation of project conditions 1.0 $ 245.00 2.0 $ 400.00 8.0 $ 1,200.00 -$ --$ -11.0 $ 1,845.00
4.7 Parking impacts -$ -1.0 $ 200.00 1.0 $ 150.00 -$ --$ -2.0 $ 350.00
4.8 Pedestrian, bicycle, & transit access 1.0 $ 245.00 4.0 $ 800.00 2.0 $ 300.00 $ --$ -7.0 $ 1,345.00
4.9 Evaluation of cumulative conditions 1.0 $ 245.00 2.0 $ 400.00 4.0 $ 600.00 $ --$ -7.0 $ 1,245.00
4.10 Description of impacts and recommendations 1.0 $ 245.00 2.0 $ 400.00 2.0 $ 300.00 -$ --$ -5.0 $ 945.00
4.11 Meetings and reports 6.0 $ 1 470.00 20.0 $ 4 000.00 32.0 $ 4 800.00 -$ -10.0 $ 950.00 68.0 $ 11 220.00
4.0 Subtotal 11.0 $ 2,695.00 37.0 $ 7,400.00 71.0 $ 10,650.00 2.0 $ 130.00 10.0 $ 950.00 131.0 $ 21,825.00
5.0
5.1
5.2
6.0
6.1
6.2
7.0 FINAL PS&E
7.2 65% Plans and Estimates 1.0 $ 209.00 $ -32.0 $ 4,128.00 $ --$ -33.0 $ 4,337.00
7.4 100% PS&E 1.0 $ 209.00 $ -16.0 $ 2 064.00 $ --$ -17.0 $ 2 273.00
7.0 Subtotal 2.0 $ 418.00 -$ -48.0 $ 6,192.00 -$ --$ -50.0 $ 6,610.00
8.0
8.1
8.2
Subtotal
Reimbursables
Hexagon Total:
$
$
28,435.00
$1,625.00
30,060.00
K
Page 25 of 28
EXHIBIT "C1" HOURLY RATE SCHEDULE
Dudek
Sr. Project Mngr Planner V Planner IV Administrative/ Subtotal
Darcey R. Katherine W. Heather M. Grahpics
Task Description
@ $180 @ $160 @ $150 @ $100
hrs $'s hrs $'s hrs $'s hrs $'s hrs $'s
1.0
1.1
1.2
1.3
1.4
2.0
2.1
2.2
3.0
3.1
4.0
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
4.10
4.11
5.0 ENVIRONMENTAL ASSESSMENT
5.1 Initial study 6.0 1,080.00$ 24.0 3,840.00$ 40.0 6,000.00$ 6.0 $ 600.00 76.0 $ 11,520.00
5.2 MND 4.0 720.00$ 24.0 3,840.00$ 56.0 8,400.00$ 4.0 $ 400.00 88.0 $ 13,360.00
5.0 Subtotal 10.0 1,800.00$ 48.0 7,680.00$ 96.0 14,400.00$ 10.0 $ 1,000.00 164.0 $ 24,880.00 6.0
6.1
6.2
7.0
7.2
7.4
8.0
8.1
8.2
$ 24,880.00
$850.00
Dudek Total: $ 25,730.00
Page 26 of 28
EXHIBIT "C1" HOURLY RATE SCHEDULE
Alta Planning + Design
Principal Project Manager Landscape Architect Graphics Subtotal
Randy A. Casey H. Mary S. Kristin M.
Task Description
@ $210 @ $140 @ $110 @ $100
hrs $'s hrs $'s hrs $'s hrs $'s hrs $'s
1.0 PROJECT MANAGEMENT
1.1 Project coordination & tracking -$ --$ --$ --$ --$ -
1.2 QA/QC -$ --$ --$ --$ --$ -
1.3 Meetings, agendas, and minutes -$ --$ --$ --$ --$ -
1.4 Kick-off meeting -$ -4.0 $ 560.00 -$ --$ -4.0 $ 560.00
1.0 Subtotal -$ -4.0 $ 560.00 -$ --$ -4.0 $ 560.00 2.0
CONCEPT PLAN LINE DRAWINGS
Conceptual Drawings
2.1
2.2
3.0
3.1 6.0 $ 1 260.00 12.0 $ 1 680.00 12.0 $ 1 320.00 24.0 $ 2 400.00 54.0 $ 6 660.00
3.0 Subtotal 6.0 $ 1,260.00 12.0 $ 1,680.00 12.0 $ 1,320.00 24.0 $ 2,400.00 54.0 $ 6,660.00 4.0
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
4.10
4.11
5.0
5.1
5.2
6.0 COMMUNITY OUTREACH
6.1 Outreach materials/notices 4.0 $ 840.00 4.0 $ 560.00 12.0 $ 1,320.00 4.0 $ 400.00 24.0 $ 3,120.00
6.2 Community/City meetings -$ -12.0 $ 1,680.00 -$ --$ -12.0 $ 1,680.00 6.0 Subtotal 4.0 $ 840.00 16.0 $ 2,240.00 12.0 $ 1,320.00 4.0 $ 400.00 36.0 $ 4,800.00
7.0 FINAL PS&E
7.2 65% Plans and Estimates 6.0 $ 1,260.00 8.0 $ 1,120.00 72.0 $ 7,920.00 12.0 $ 1,200.00 98.0 $ 11,500.00
7.4 100% PS&E 2.0 $ 420.00 4.0 $ 560.00 40.0 $ 4 400.00 -$ -46.0 $ 5 380.00
7.0 Subtotal 8.0 $ 1,680.00 12.0 $ 1,680.00 112.0 $ 12,320.00 12.0 $ 1,200.00 144.0 $ 16,880.00
8.0
8.1
8.2
$ 28,900.00
$550.00
Alta Total: $ 29,450.00
Page 27 of 28
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:
REQUIRE
D TYPE OF COVERAGE REQUIREMENT
MINIMUM LIMITS
EACH
OCCURRENCE AGGREGATE
YES
YES
WORKER’S COMPENSATION
EMPLOYER’S LIABILITY
STATUTORY
STATUTORY
YES GENERAL LIABILITY, INCLUDING BODILY INJURY $1,000,000 $1,000,000
PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET PROPERTY DAMAGE $1,000,000 $1,000,000
CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000
BODILY INJURY $1,000,000 $1,000,000 -EACH PERSON $1,000,000 $1,000,000
YES AUTOMOBILE LIABILITY, INCLUDING -EACH OCCURRENCE $1,000,000 $1,000,000
ALL OWNED, HIRED, NON-OWNED PROPERTY DAMAGE $1,000,000 $1,000,000
BODILY INJURY AND PROPERTY DAMAGE, COMBINED $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 (30) DAY ADVANCE NOTICE TO CITY OF CHANGE IN
COVERAGE OR OF COVERAGE CANCELLATION; AND
B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY.
C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL.
II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE.
III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS”
A. PRIMARY COVERAGE
WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS.
B. CROSS LIABILITY
Professional Services Rev Feb. 2014
Page 28 of 28
THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL
LIABILITY OF THE COMPANY UNDER THIS POLICY.
C. NOTICE OF CANCELLATION
1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE
CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.
2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN
(10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.
NOTICES SHALL BE MAILED TO:
PURCHASING AND CONTRACT ADMINISTRATION CITY OF PALO ALTO P.O. BOX 10250 PALO ALTO, CA 94303
Professional Services Rev Feb. 2014
City of Palo Alto (ID # 4893)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 6/16/2014
City of Palo Alto Page 1
Summary Title: Adoption of a Resolution Proposing the Appropriations Limit
for Fiscal Year 2015
Title: Adoption of a Resolution Determining the Proposed Calculation of the
Appropriations Limit for Fiscal Year 2015
From: City Manager
Lead Department: Administrative Services
Recommended Motion
Staff recommends that Council consider the following motion to adopt the attached Resolution
determining the Proposition 4 (GANN) Appropriations Limit calculation for Fiscal Year 2015.
The City's Fiscal Year 2015 appropriations are estimated to be $52.24 million under the limit,
assuming Council approval of the Fiscal Year 2015 Adopted Budget.
Recommendation
Staff recommends that Council adopt the attached Resolution determining the Proposition 4
(GANN) Appropriations Limit calculation for Fiscal Year 2015. The City's Fiscal Year 2015
appropriations are estimated to be $52.24 million under the limit, assuming Council adoption of
the Fiscal Year 2015 Proposed Budget.
Background
California voters approved an initiative on November 6, 1979 that added Article XIIIB to the
State Constitution as amended with Proposition 98 in 1988 and Proposition 111 in 1990. The
provisions of this article place limits on the amount of revenue that can be appropriated by all
entities of government. The Appropriation Limit is based on actual appropriations during the
1978-1979 fiscal year, as increased each year using specified population and inflationary growth
factors.
The original legislation implementing the provisions of Article XIIIB became effective January
1, 1981. In accordance with that legislation, the governing body of each government jurisdiction
must, by resolution, establish its annual Appropriation Limit for the coming year (prior to July 1)
at a regularly scheduled meeting or noticed special meeting.
Based on Article XIIIB, the City of Palo Alto can use the larger of two measurements of
City of Palo Alto Page 2
population growth, (county or city population growth) in the Appropriations Limit calculation.
For Fiscal Year 2015, the City is using the Santa Clara County population factor, which is greater
than the population factor for the City of Palo Alto. The City typically uses the highest factor in
order to provide maximum appropriation flexibility.
To provide for an extended public review of this report as required by State law, this report was
released to the public as an information item as part of the June 9 City Council agenda.
Discussion
The Appropriations Limit is adjusted annually on the basis of population and per capita income
changes. This updated information is received from the California Department of Finance in
May, after the City's proposed budget has been submitted to Council. Attached is the final
Appropriations Limit calculation, based on the updated information as well as allowable
appropriation limit adjustment factors such as voter-approved debt and capital outlay
expenditures. The Appropriations Limit for Fiscal Year 2015 is $135.17 million. The City's Fiscal
Year 2015 budgeted appropriations are estimated to be $52.24 million under the limit.
As required by state law, documentation used to compute the Appropriations Limit has been
made available to the public at least fifteen days prior to the Council meeting at which the
Appropriations Limit is being adopted, and notice was published of the availability of these
materials.
Resource Impact
The adoption of the Fiscal Year 2015 Appropriations Limit has no impact on City resources.
Policy Implications
This recommendation is consistent with existing City policies.
Environmental Review
This is not a project under section 21065 of the California Environmental Quality Act.
Attachments:
Attachment A: Resolution Determining the Calculation of the Appropriations Limit for
Fiscal Year 2015 (PDF)
Attachment A, Exhibit 1: Appropriations Limitation Compliance Calculation for Fiscal
Year 2015 Adopted Budget (XLS)
1
Resolution No. _______
Resolution of the Council of the City of Palo Alto Determining the Calculation
of the Appropriations Limit for Fiscal Year 2015
R E C I T A L S
A. Under Article XIIIB of the Constitution of the State of California, the City of Palo
Alto (City) may not appropriate any proceeds of taxes in excess of its appropriations limit
(Limit.
B. Since fiscal year 1991, the City is permitted to annually adjust its Limit in
accordance with inflation and population adjustment factors.
C. Pursuant to Government Code Section 37200, the calculation of the Limit and
the total appropriations subject to the limit were set forth in the annual budget of the City for
Fiscal Year 2014, which was adopted by ordinance of the Council on June 10, 2013.
D. Pursuant to Government Code sections 7901 and 7910, the final calculation of
the Limit has been determined, and the adjustment factors on which the calculation is based
are a -0.23% percent change in California per capita income and a 1.50% percent change in the
population growth for Santa Clara County.
E. The documentation used in the determination of the Limit has been made
available to the general public for fifteen (15) days prior to the date of adoption of this
resolution.
F. According to the final calculation, the City’s appropriations subject to limitation
are approximately $82.93 million.
The Council of the City of Palo Alto RESOLVES as follows:
SECTION 1. The Council of the City of Palo Alto hereby finds that, for Fiscal Year
2015, the final calculation of the Appropriations Limit of the City of Palo Alto has been
determined in accordance with the adjustment factors referred to above, the documentation
used in the determination of the calculation has been made available to the general public for
the period of fifteen days as required by law, and the City’s appropriations subject to limitation
are under the Limit by approximately $52.24 million.
SECTION 2. The Council hereby adopts the final calculation of the Appropriations
Limit of the City for Fiscal Year 2015, a copy of which is attached hereto as Exhibit A.
ATTACHMENT A
2
SECTION 3. The Council finds that the adoption of this resolution does not constitute
a project under the California Environmental Quality Act, and, therefore, no environmental
assessment is necessary.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST: APPROVED:
___________________________ ___________________________
City Clerk Mayor
APPROVED AS TO FORM: _______________________________
City Manager
___________________________
Senior Assistant City Attorney
______________________________
Director, Administrative
Services
Attachment A,Exhibit 1
Combined General Capital Debt Special
Funds Fund Projects Service Revenue
Total Budgeted Appropriations
FY 2015 Adopted Budget ($ millions)159.18 125.32 25.18 4.92 3.76
Less:Debt Service Transactions 4.92
Capital Outlay 25.18 25.18
Non-Proceeds of Taxes 46.15 42.50 3.65
Net Adopted Appropriations Subject to Limit 82.93 82.82 0.00 4.92 0.10
FY 2015 Appropriations Limit $135.17
Under Limit By $52.24
Computation of Appropriation Limit:
FY 2014 Appropriations Limit:$133,476,711
FY 2015 Santa Clara County
Population Change (estimated)1.50%
2014-2015 Per Capita Income Change (estimated)-0.23%
(1.0150) x (0.9977) x $133,476,711 = $135,167,260
10 Year GANN Limit Calculation FY 2011 FY 2012 FY 2013 FY 2014 FY 2015
Actual Acutal Actual Adopted Budget
Appropriations Subject to the Limit 78.94 89.00 96.73 88.76 82.93
Appropriations Limit 115.06 119.00 125.01 133.48 135.17
Under Limit By 36.12 30.00 28.28 44.72 52.24
FY 2016 FY 2017 FY 2018 FY 2019 FY 2020
Projected Projected Projected Projected Projected
Estimated Appropriations Subject to Limit 85.74 88.64 91.65 94.75 97.96
Estimated Appropriations Limit 139.75 144.48 149.38 154.45 159.68
Under Limit By 54.01 55.84 57.73 59.70 61.72
APPROPRIATIONS LIMITATION COMPLIANCE CALCULATION
FOR FY 2015 PROPOSED BUDGET
($ IN MILLIONS)
The City of Palo Alto remains well within its appropriations limit in FY 2015.Future year limit trends can be made based
on the average change in regional population and income growth. The appropriations subject to limitation includes
proceeds of taxes from the General Fund, Special Revenue Funds, Debt Service Funds, and Capital Improvement Funds. The
following is a summary of estimated limits and estimated appropriations subject to the limit.
City of Palo Alto (ID # 4677)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 6/16/2014
City of Palo Alto Page 1
Summary Title: IT Staff Augmentation Contract
Title: Approval of Separate Five-Year Contracts with Genuent USA, LLC,
Intratek Comuter, Inc., Digital Intelligence Systems, LLC, GTC Systems, Inc.,
Modis, Inc., Bodhtree Solutions, Inc. and Signature Technology Group, Inc.
For IT Temporary Staffing Support Services in a Total Amount Not to Exceed
$500,000 Per Fiscal Year for All Seven Contracts
From: City Manager
Lead Department: IT Department
Recommendation
Staff recommends that Council approve, and authorize the City Manager or designee to
execute, the attached separate five-year contracts with Genuent USA, LLC, Intratek Computer,
Inc., Digital Intelligence Systems, LLC, GTC Systems, Inc., Modis, Inc., Bodhtree Solutions, Inc.
and Signature Technology Group, Inc. for IT Temporary Staff Support Services in an aggregate
amount not to exceed $500,000 per fiscal year for the seven consultants. Staff will annually
administer these seven contracts to ensure the total aggregate of compensation paid per fiscal
year for these seven IT temporary support services providers will not exceed $500,000 subject
to annual appropriation of funds.
Executive Summary
The IT Department has increasing needs to fill specialized position(s) for a short period of time,
such as an SAP Analyst or system administrator. Short-term contractor positions provide
significant flexibility to the dynamic technology needs of the City and assist with a lower cost
approach to staffing going-forward. Staff also uses temporary staffing to cover workload and/or
support staff absences. In order to avoid regular business interruptions, IT posted an RFP to
staff these temporary positions on an on-call basis. Finally, with a tight contractor market in
Silicon Valley, the City needs multiple vendors to ensure there are options available.
The seven consultants are:
Genuent USA LLC
City of Palo Alto Page 2
Intratek Computer, Inc.
Digital Intelligence Systems, LLC (DISYS)
GTC Systems, Inc.
Modis, Inc.
Bodhtree Solutions, Inc.
Signature Technology Group, Inc.
Under staff’s recommendation, each of the seven contracts’ scope of work will identify all
seven consultants and state that the City is hiring the seven consultants to perform the
Temporary Staff Support services; none will be guaranteed or assured of any specific quantity
of work to be performed. If work is performed by any one or more consultants, the City will
ensure that the aggregate total compensation to all seven consultants will not exceed in the
aggregate $500,000 per fiscal year.
Background
The RFP process sought to identify a number of qualified firms that can provide temporary
staffing services on an as-needed basis. The City will not guarantee any minimum quantity of
work or compensation and expenditure with any of these consultants during the contract
period.
The contracting services that staff typically seeks are as follows, but not limited to:
Project Management
System Administration
Program Management
Data Analysis
Discussion
In November 2012, staff entered into a contract with three temporary staffing vendors for IT,
namely, Genuent USA, LLC, 22nd Century Technologies and Intellibridge Partners Incorporated.
After the City worked with these three companies, it determined that 22nd Century
Technologies and Intellibridge Partners Incorporated possessed expertise that the City could
not use to provide the desired staff support services. As a result, staff only renewed the
contract with Genuent USA LLC.
In the beginning of 2014, the Purchasing Division issued an RFP for Temporary IT staffing
services.
Summary of City Bid Process
City of Palo Alto Page 3
RFP Issued January 07, 2014
Pre-Proposal Meeting – Non-Mandatory January 16, 2014
Deadline for questions, clarifications January 21, 2014
Questions and Answers to Proposers
Due
January 29, 2014
Proposals Due February 11, 2014
Proposals Received 25
Finalist Identified February 27, 2014
Number of Consultant
Interviews/Demos
10
Number of Vendors Selected for
Contract
7
Resource Impact
The funds for the payment of these seven contracts, which are budgeted in the Information
Technology Internal Service Fund, are subject to Council’s adoption of the Fiscal Year 2015
Proposed Budget. Additional year funding will also be budgeted through the IT Technology
Fund. No additional funding is necessary.
Environmental Review
Approval of these contracts do not constitute a project under the California
Environmental Quality Act (CEQA); therefore, no Environmental Assessment is required.
Attachments:
C15152474 - Genuent Signed Contract (PDF)
C15154381 - Intratek Computer Signed Contract (PDF)
C15154391 - Bodhtree Solutions Signed Contract (PDF)
C15154389 - GTC Systems Signed Contract (PDF)
C15154392 - Signature Technology Signed Contract (PDF)
C15154390 - Modis Signed Contract (PDF)
C15154388 - Digital Intelligence Systems Contract (PDF)
Professional Services
Rev. Feb. 2014
CITY OF PALO ALTO CONTRACT NO. C15154388
AGREEMENT BETWEEN THE CITY OF PALO ALTO AND DIGITAL
INTELLIGENCE SYSTEMS LLC (DISYS)
FOR PROFESSIONAL SERVICES
This Agreement is entered into on this 1st day of July, 2014, (this “Agreement”)
by and between the CITY OF PALO ALTO, a California chartered municipal corporation
(“CITY”), and, DIGITAL INTELLIGENCE SYSTEMS LLC (DISYS), a Delaware limited
liability company, dba DISYS, authorized to do business in the State of California, located at
8270 Greensboro Drive, Suite 1000, McLean, VA 22102 ("CONSULTANT" or “Consultant”).
RECITALS
The following recitals are a substantive portion of this Agreement.
A. CITY intends to temporarily staff various Information Technology positions and
functions (the “Project”) and desires to engage a consultant to provide Information Technology
temporary staff support services in connection with the Project (the “Services”).
B. CONSULTANT has represented that it has the necessary professional expertise,
qualifications, and capability, and all required licenses and/or certifications to provide the
Services.
C. CITY in reliance on these representations desires to engage CONSULTANT to provide
the Services as more fully described in Exhibit “A”, attached to and made a part of this
Agreement.
NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions,
in this Agreement, the parties agree:
AGREEMENT
SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in
Exhibit “A” in accordance with the terms and conditions contained in this Agreement. The
performance of all Services shall be to the reasonable satisfaction of CITY.
Optional On-Call Provision (This provision only applies if checked and only applies to on-
call agreements.)
Services will be authorized by CITY, as needed, with a Task Order assigned and approved by
CITY’s Project Manager. Each Task Order shall be in substantially the same form as Exhibit A-
1. Each Task Order shall designate a CITY Project Manager and shall contain a specific scope of
work, a specific schedule of performance and a specific compensation amount. The total price of
all Task Orders issued under this Agreement shall not exceed the amount of Compensation set
forth in Section 4 of this Agreement. CONSULTANT shall only be compensated for work
performed under an authorized Task Order and CITY may elect, but is not required, to authorize
Professional Services
Rev. Feb. 2014
work up to the maximum compensation amount set forth in Section 4.
SECTION 2. TERM.
The term of this Agreement shall be from the date of its full execution through June 30, 2019
unless terminated earlier pursuant to Section 19 of this Agreement.
SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance
of Services under this Agreement. CONSULTANT shall complete the Services within the term
of this Agreement. Any Services for which times for performance are not specified in this
Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and
timely manner based upon the circumstances and direction communicated to the
CONSULTANT. CITY’s agreement to extend the term or the schedule for performance shall
not preclude recovery of damages for delay if the extension is required due to the fault of
CONSULTANT.
SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to
CONSULTANT for performance of the Services described in Exhibit “A”, including both
payment for professional services and reimbursable expenses, in an aggregate amount which
shall not exceed Five Hundred Thousand Dollars ($500,000) per fiscal year; provided, however,
CONSULTANT acknowledges that the compensation paid to it likely will be less than $500,000
per fiscal year, as CITY has appropriated that amount to payments to be made under seven
contracts, of which this Agreement is one. The seven contracts shall be administered by
Information Technology to ensure the total aggregate of compensation paid per fiscal year for
these seven Information Technology support services will not exceed Five Hundred Thousand
Dollars ($500,000) annually. In the event Additional Services are authorized, the total
compensation for Services, Additional Services and reimbursable expenses shall not exceed Zero
Dollars ($0). The applicable rates and schedule of payment are set out in Exhibit “B-1”, entitled
“HOURLY RATE SCHEDULE,” which is attached to and made a part of this Agreement.
The CITY is hiring seven consultants, none of whom will be guaranteed or assured of any
specific quantity of work to be performed. If work is performed by any one or more
CONSULTANTs, CITY will ensure that total compensation to all seven CONSULTANTS will
not exceed in the aggregate Five Hundred Thousand Dollars ($500,000) per fiscal year.
Additional Services, if any, shall be authorized in accordance with and subject to the provisions
of Exhibit “B”. CONSULTANT shall not receive any compensation for Additional Services
performed without the prior written authorization of CITY. Additional Services shall mean any
work that is determined by CITY to be necessary for the proper completion of the Project, but
which is not included within the Scope of Services described in Exhibit “A”.
SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly
invoices to the CITY describing the services performed and the applicable charges (including an
identification of personnel who performed the services, hours worked, hourly rates, and
reimbursable expenses), based upon the CONSULTANT’s billing rates (set forth in Exhibit “B-
1”). If applicable, the invoice shall also describe the percentage of completion of each task. The
information in CONSULTANT’s payment requests shall be subject to verification by CITY.
CONSULTANT shall send all invoices to the City’s project manager at the address specified in
Section 13 below. The City will generally process and pay invoices within thirty (30) days of
Professional Services
Rev. Feb. 2014
receipt.
SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All of the Services shall be
performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT
represents that it possesses the professional and technical personnel necessary to perform the
Services required by this Agreement and that the personnel have sufficient skill and experience
to perform the Services assigned to them. CONSULTANT represents that it, its employees and
subconsultants, if permitted, have and shall maintain during the term of this Agreement all
licenses, permits, qualifications, insurance and approvals of whatever nature that are legally
required to perform the Services.
All of the services to be furnished by CONSULTANT under this agreement shall meet the
professional standard and quality that prevail among professionals in the same discipline and of
similar knowledge and skill engaged in related work throughout California under the same or
similar circumstances.
SECTION 7. COMPLIANCE WITH LAWS. 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 negligent and material errors, omissions, or ambiguities in the work product submitted to
CITY, provided CITY gives notice to CONSULTANT. If CONSULTANT has prepared plans
and specifications or other design documents to construct the Project, CONSULTANT shall be
obligated to correct any and all errors, omissions or ambiguities discovered prior to and during
the course of construction of the Project. This obligation shall survive termination of the
Agreement.
SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works
project, CONSULTANT shall submit estimates of probable construction costs at each phase of
design submittal. If the total estimated construction cost at any submittal exceeds ten percent
(10%) of the CITY’s stated construction budget, CONSULTANT shall make recommendations
to the CITY for aligning the PROJECT design with the budget, incorporate CITY approved
recommendations, and revise the design to meet the Project budget, at no additional cost to
CITY.
SECTION 10. INDEPENDENT CONTRACTOR. It is understood and agreed that in
performing the Services under this Agreement CONSULTANT, and any person employed by or
contracted with CONSULTANT to furnish labor and/or materials under this Agreement, shall act
as and be an independent contractor and not an agent or employee of the CITY.
SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of
CONSULTANT are material considerations for this Agreement. CONSULTANT shall not
assign or transfer any interest in this Agreement nor the performance of any of
CONSULTANT’s obligations hereunder without the prior written consent of the city manager.
Consent to one assignment will not be deemed to be consent to any subsequent assignment. Any
Professional Services
Rev. Feb. 2014
assignment made without the approval of the city manager will be void.
SECTION 12. SUBCONTRACTING.
No Subcontractor: CONSULTANT shall not subcontract any portion of the work to be
performed under this Agreement without the prior written authorization of the city manager or
designee.
CONSULTANT shall be responsible for directing the work of any subconsultants and for any
compensation due to subconsultants. CITY assumes no responsibility whatsoever concerning
compensation. CONSULTANT shall be fully responsible to CITY for all acts and omissions of a
subconsultant. CONSULTANT shall change or add subconsultants only with the prior approval
of the city manager or his designee.
SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Prakash Selva
as the managing director to have supervisory responsibility for the performance, progress, and
execution of the Services and Veronica Richert as the account executive 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 Sherrie Wong, project manager, Information Technology Division,
250 Hamilton Ave., Palo Alto, CA 94303, Telephone: 650-617-3152. The project manager will
be CONSULTANT’s point of contact with respect to performance, progress and execution of the
Services. The CITY may designate an alternate project manager from time to time.
SECTION 14. OWNERSHIP OF MATERIALS. Upon delivery, all work product, including
without limitation, all writings, drawings, plans, reports, specifications, calculations, documents,
other materials and copyright interests developed under this Agreement shall be and remain the
exclusive property of CITY without restriction or limitation upon their use. CONSULTANT
agrees that all copyrights which arise from creation of the work pursuant to this Agreement shall
be vested in CITY, and CONSULTANT waives and relinquishes all claims to copyright or other
intellectual property rights in favor of the CITY. Neither CONSULTANT nor its contractors, if
any, shall make any of such materials available to any individual or organization without the
prior written approval of the City Manager or designee. CONSULTANT makes no
representation of the suitability of the work product for use in or application to circumstances not
contemplated by the scope of work.
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SECTION 15. AUDITS. CONSULTANT will permit CITY to audit, at any reasonable time
during the term of this Agreement and for three (3) years thereafter, CONSULTANT’s records
pertaining to matters covered by this Agreement. CONSULTANT further agrees to maintain and
retain such records for at least three (3) years after the expiration or earlier termination of this
Agreement.
SECTION 16. INDEMNITY.
16.1. To the fullest extent permitted by law, CONSULTANT shall protect,
indemnify, defend and hold harmless CITY, its Council members, officers, employees and
agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability
of any nature, including death or injury to any person, property damage or any other loss,
including all costs and expenses of whatever nature including attorney’s fees, experts fees, court
costs and disbursements (“Claims”) resulting from, arising out of or in any manner related to
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, provided that: (a) the CITY promptly notifies CONSULTANT of any such
claim; and (b) CONSULTANT has sole control of the defense of such claims and all related
settlement negotiations.
16.2. Notwithstanding the above, nothing in this Section 16 shall be construed
to require CONSULTANT to indemnify an Indemnified Party from Claims arising from the
active negligence, sole negligence or willful misconduct of an Indemnified Party.
16.3. The acceptance of CONSULTANT’s services and duties by CITY shall
not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall
survive the expiration or early termination of this Agreement.
SECTION 17. WAIVERS. The waiver by either party of any breach or violation of any
covenant, term, condition or provision of this Agreement, or of the provisions of any ordinance
or law, will not be deemed to be a waiver of any other term, covenant, condition, provisions,
ordinance or law, or of any subsequent breach or violation of the same or of any other term,
covenant, condition, provision, ordinance or law.
SECTION 18. INSURANCE.
18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in
full force and effect during the term of this Agreement, the insurance coverage described in
Exhibit "C". CONSULTANT and its contractors, if any, shall obtain a policy endorsement
naming CITY as an additional insured under any general liability or automobile policy or
policies.
18.2. All insurance coverage required hereunder shall be provided through
carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or
authorized to transact insurance business in the State of California. Any and all contractors of
CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in
full force and effect during the term of this Agreement, identical insurance coverage, naming
CITY as an additional insured under such policies as required above.
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18.3. Certificates evidencing such insurance shall be filed with CITY
concurrently with the execution of this Agreement. The certificates will be subject to the
approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is
primary coverage and will not be canceled, or materially reduced in coverage or limits, by the
insurer except after filing with the Purchasing Manager thirty (30) days' prior written notice of
the cancellation or modification. If the insurer cancels or modifies the insurance and provides
less than thirty (30) days’ notice to CONSULTANT, CONSULTANT shall provide the
Purchasing Manager written notice of the cancellation or modification within two (2) business
days of the CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for
ensuring that current certificates evidencing the insurance are provided to CITY’s Purchasing
Manager during the entire term of this Agreement.
18.4. The procuring of such required policy or policies of insurance will not be
construed to limit CONSULTANT's liability hereunder nor to fulfill the indemnification
provisions of this Agreement. Notwithstanding the policy or policies of insurance,
CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss
caused by or directly arising as a result of the Services performed under this Agreement,
including such damage, injury, or loss arising after the Agreement is terminated or the term has
expired.
18.5. CONSULTANT DISCLAIMS ALL OTHER WARRANTIES, EXPRESS
OR IMPLIED, INCLUDING BUT NOT LIMITED TO ANY IMPLIED WARRANTIES OF
MECHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE AND ANY
WARRANTIES THAT MIGHT OTHERWISE ARISE BY COURSE OF PERFORMANCE,
COURSE OF DEALING, OR USAGE OF TRADE.
SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES.
19.1. The City Manager may suspend the performance of the Services, in whole
or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior
written notice thereof to CONSULTANT. Upon receipt of such notice, CONSULTANT will
immediately discontinue its performance of the Services.
19.2. CONSULTANT may terminate this Agreement or suspend its
performance of the Services by giving thirty (30) days prior written notice thereof to CITY, but
only in the event of a substantial failure of performance by CITY.
19.3. Upon such suspension or termination, CONSULTANT shall deliver to the
City Manager immediately any and all copies of studies, sketches, drawings, computations, and
other data, whether or not completed, prepared by CONSULTANT or its contractors, if any, or
given to CONSULTANT or its contractors, if any, in connection with this Agreement. Such
materials will become the property of CITY.
19.4. Upon such suspension or termination by CITY, CONSULTANT will be
paid for the Services rendered or materials delivered to CITY in accordance with the scope of
services on or before the effective date (i.e., 10 days after giving notice) of suspension or
termination; provided, however, if this Agreement is suspended or terminated on account of a
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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.
19.5. No payment, partial payment, acceptance, or partial acceptance by CITY
will operate as a waiver on the part of CITY of any of its rights under this Agreement.
SECTION 20. NOTICES.
All notices hereunder will be given in writing and mailed, postage prepaid, by
certified mail, addressed as follows:
To CITY: Office of the City Clerk
City of Palo Alto
Post Office Box 10250
Palo Alto, CA 94303
With a copy to the Purchasing Manager
To CONSULTANT: Attention of the project director
at the address of CONSULTANT recited above
SECTION 21. CONFLICT OF INTEREST.
21.1. In accepting this Agreement, CONSULTANT covenants that it presently
has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which
would conflict in any manner or degree with the performance of the Services.
21.2. CONSULTANT further covenants that, in the performance of this
Agreement, it will not employ subconsultants, contractors or persons having such an interest.
CONSULTANT certifies that no person who has or will have any financial interest under this
Agreement is an officer or employee of CITY; this provision will be interpreted in accordance
with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the
State of California.
21.3. If the Project Manager determines that CONSULTANT is a “Consultant”
as that term is defined by the Regulations of the Fair Political Practices Commission,
CONSULTANT shall be required and agrees to file the appropriate financial disclosure
documents required by the Palo Alto Municipal Code and the Political Reform Act.
SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section
2.30.510, CONSULTANT certifies that in the performance of this Agreement, it shall not
discriminate in the employment of any person because of the race, skin color, gender, age,
religion, disability, national origin, ancestry, sexual orientation, housing status, marital status,
familial status, weight or height of such person. CONSULTANT acknowledges that it has read
and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to
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Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all
requirements of Section 2.30.510 pertaining to nondiscrimination in employment.
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SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO
WASTE REQUIREMENTS. CONSULTANT shall comply with the City’s Environmentally
Preferred Purchasing policies which are available at the City’s Purchasing Department,
incorporated by reference and may be amended from time to time. CONSULTANT shall comply
with waste reduction, reuse, recycling and disposal requirements of the City’s Zero Waste
Program. Zero Waste best practices include first minimizing and reducing waste; second,
reusing waste and third, recycling or composting waste. In particular, Consultant shall comply
with the following zero waste requirements:
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 24. NON-APPROPRIATION
24.1. This Agreement is subject to the fiscal provisions of the Charter of the
City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any
penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the
following fiscal year, or (b) at any time within a fiscal year in the event that funds are only
appropriated for a portion of the fiscal year and funds for this Agreement are no longer available.
This section shall take precedence in the event of a conflict with any other covenant, term,
condition, or provision of this Agreement.
SECTION 25. SOLE AND EXCLUSIVE REMEDY
The sole and exclusive remedy of the CITY for any act or omission of CONSULTANT related to
this Agreement shall be limited to the return of the amounts paid by the CITY to
CONSULTANT hereunder, or a portion thereof, whether such liability is based in contract, tort,
statue or otherwise. CONSULTANT shall not have any liability to the CITY arising out of or
relating in any manner to this Agreement for any special, exemplary, punitive, indirect or other
consequential or incidental damage, even if CONSULTANT knew or had been advised of the
possibility of such damages.
SECTION 26. HIRING RESTRICTIONS
In the event that the CITY hires any employee or contractor of CONSULTANT prior to the date
that such employee has been on assignment to the CITY for at least six (6) months, CITY shall
pay CONSULTANT an amount equal to twenty percent (20%) of the total compensation to be
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paid by the CITY to such employee or contractor during the twelve (12) months following the
date of such hiring (the “Hiring Fee”). The Hiring Fee will be due and payable upon the date o
such hiring by the CITY.
SECTION 27. MISCELLANEOUS PROVISIONS.
27.1. This Agreement will be governed by the laws of the State of California.
27.2. 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.
27.3. 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.
27.4. 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.
27.5. 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.
27.6. 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.
27.7. 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.
27.8 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.
27.9 All unchecked boxes do not apply to this agreement.
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27.10 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.
27.11 This Agreement may be signed in multiple counterparts, which shall, when
executed by all the parties, constitute a single binding agreement
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
DIGITAL INTELLIGENCE SYSTEMS
LLC (DISYS)
By:___________________________
Name:_________________________
Title:________________________
Attachments:
EXHIBIT “A”: SCOPE OF WORK
EXHIBIT “A-1” ON CALL TASK ORDER
EXHIBIT “B”: COMPENSATION
EXHIBIT “B-1”: HOURLY RATE SCHEDULE
EXHIBIT “C”: INSURANCE REQUIREMENTS
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EXHIBIT “A”
SCOPE OF SERVICES
Provide IT contracting services such as, but not limited to:
Project Management
System Administration
Program Management
Data Analysis
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EXHIBIT “A-1”
PROFESSIONAL SERVICES TASK ORDER
Consultant hereby agrees to perform the work detailed below in accordance with all the terms and conditions of the
Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into the Agreement by
this reference. The Consultant shall furnish the necessary facilities, professional, technical and supporting personnel
required by this Task Order as described below.
CONTRACT NO. ISSUE DATE
Purchase Requisition No.
1A. MASTER AGREEMENT NUMBER
1B. TASK ORDER NO.
2. CONSULTANT
3. PERIOD OF PERFORMANCE: START: COMPLETION:
4 TOTAL TASK ORDER PRICE: $__________________
BALANCE REMAINING IN MASTER AGREEMENT $__________________________________
5. BUDGET CODE: _______________
COST CENTER_________________ COST ELEMENT______________ WBS/CIP___
_______PHASE___
6. CITY PROJECT MANAGER’S
NAME/DEPARTMENT_________________________________________
7. DESCRIPTION OF SCOPE OF SERVICES
MUST INCLUDE:
WORK TO BE PERFORMED
SCHEDULE OF WORK
BASIS FOR PAYMENT & FEE SCHEDULE
DELIVERABLES
REIMBURSABLES (with “not to exceed” cost)
8. ATTACHMENTS: A: Scope of Services B: __________________________________
-----------------------------------------------------------------------------------------------------------------------------------
I hereby authorize the performance of I hereby acknowledge receipt and acceptance
the work described above in this Task Order. of this Task Order and warrant that I have
authority to sign on behalf of Consultant.
APPROVED: APPROVED:
CITY OF PALO ALTO COMPANY NAME: ______________________
BY:__________________________________ BY:____________________________________
Name ________________________________ Name __________________________________
Title_________________________________ Title___________________________________
Date _________________________________ Date ___________________________________
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EXHIBIT “B”
COMPENSATION
CITY agrees to compensate CONSULTANT for professional services performed in
accordance with the terms and conditions of this Agreement based on the hourly rate
schedule attached as Exhibit B-1.
The compensation to be paid to CONSULTANT for performance of the Services
described in Exhibit “A”, including both payment for professional services and
reimbursable expenses, in an aggregate amount which shall not exceed the appropriations
of $500,000 per fiscal year for a total of seven contracts, of which this Agreement is one.
The seven contracts shall be administered by CITY’s Information Technology Department
to ensure the total aggregate of compensation paid per fiscal year for these seven
Information Technology support services contracts will not exceed Five Hundred
Thousand Dollars ($500,000) per fiscal year. In the event Additional Services are
authorized, the total compensation for Services, Additional Services and reimbursable
expenses shall not exceed Zero Dollars ($0). The applicable rates and schedule of
payment are set out in Exhibit “B-1”, entitled “HOURLY RATE SCHEDULE,” which is
attached to and made a part of this Agreement.
CONSULTANT acknowledges and agrees that CITY is hiring seven consultants,
including CONSULTANT, none of whom will be guaranteed or assured of any specific
quantity of work to be performed. If work is performed by any one or more consultants,
including CONSULTANT, CITY will ensure that total compensation to all seven
consultants, including CONSULTANT, will not exceed in the aggregate $500,000 per
fiscal year.
REIMBURSABLE EXPENSES
The administrative, overhead, secretarial time or secretarial overtime, word processing,
photocopying, in-house printing, insurance and other ordinary business expenses are
included within the scope of payment for services and are not reimbursable expenses.
CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost.
Expenses for which CONSULTANT shall be reimbursed are: $0
A. Travel outside the San Francisco Bay area, including transportation and meals, will be
reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of
travel and meal expenses for City of Palo Alto employees.
B. Long distance telephone service charges, cellular phone service charges, facsimile
transmission and postage charges are reimbursable at actual cost.
All requests for payment of expenses shall be accompanied by appropriate backup
information. Any expense anticipated to be more than $0 shall be approved in advance by
CITY’s project manager.
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ADDITIONAL SERVICES
CONSULTANT shall provide additional services only by advanced, written authorization
from CITY. CONSULTANT, at CITY’s project manager’s request, shall submit a
detailed written proposal including a description of the scope of services, schedule, level
of effort, and CONSULTANT’s proposed maximum compensation, including
reimbursable expenses, for such services based on the rates set forth in Exhibit B-1. The
additional services scope, schedule and maximum compensation shall be negotiated and
agreed to in writing by CITY’s Project Manager and CONSULTANT prior to
commencement of the services. Payment for additional services is subject to all
requirements and restrictions in this Agreement.
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EXHIBIT “B-1”
HOURLY RATE SCHEDULE
Title Hourly Rate
Tier 1 $80-102/hr
Tier 2 $65-105/hr
Tier 3 $58-92/hr
Tier 4 $27-36/hr
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EXHIBIT “C”
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 (30) DAY ADVANCE NOTICE TO CITY OF CHANGE IN
COVERAGE OR OF COVERAGE CANCELLATION; AND
B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR
CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY.
C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL.
II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE.
III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL
INSUREDS”
A. PRIMARY COVERAGE
WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS
AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER
INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS.
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B. CROSS LIABILITY
THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY
SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER,
BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL
LIABILITY OF THE COMPANY UNDER THIS POLICY.
C. NOTICE OF CANCELLATION
1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON
OTHER THAN THE NON-PAYMENT OF PREMIUM, THE 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 (ID # 4712)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 6/16/2014
City of Palo Alto Page 1
Summary Title: Approval of Purchase of Hydro Excavator Truck
Title: Approval of a Purchase Order with Owen Equipment in a Not to Exceed
Amount of $409,233.50 for the Purchase of a Hydro-Excavator Truck
(Scheduled Vehicle and Equipment Replacement Capital Improvement
Program VR-13000)
From: City Manager
Lead Department: Public Works
Recommendation
Staff recommends that Council approve, and authorize the City Manager to
execute, a purchase order with Owen Equipment in the amount of $409,234 for
the purchase of a Hydro-Excavator truck for the Utilities Department.
Background
The Utilities Department uses hydro-excavation technology due to the fragile and
delicate nature of underground systems. Hydro-excavators employ water to do
the digging. Unlike traditional excavation tools, hydro-excavation equipment is
safe for operators, and avoids damaging buried utilities. Hydro-excavators are
capable of removing all of the necessary debris and dirt without excessive
damage to the surroundings.
Discussion
The Utilities Department, Water, Gas, Wastewater Division is purchasing a
hydraulic-excavating truck to safely and more efficiently excavate around
underground utility lines. This truck uses a high-pressure water and vacuum
system to dig away the earth from around gas and water lines with less chance of
disturbing the utility line itself. This technology has been used for several years
by contractors working for the City and has proven to be more effective and less
disruptive in repairing underground utility lines.
City of Palo Alto Page 2
Audit of Vehicle Utilization and Replacement
This purchase is being conducted with full consideration for the Audit of Vehicle
Utilization and Replacement. The Fleet Review Committee has reviewed this
request and has authorized the purchase of this truck.
Bidding and Selection Process
A Request for Quotation (RFQ 148418B) for a Hydro-Excavator was sent to four
specialty vendors in November 2013 as well as posted on the City’s Purchasing
Division web page. There are specific vendor limitations, on which companies are
able to submit bids due to the amount of specialty equipment on this type of
vehicle. Bids were received from four qualified vendors on November 26, 2013.
The bids submitted ranged from a low bid of $372,235 to a high bid of $440,911.
A bid review group comprised of representatives from ASD/Purchasing, Utilities,
and Public Works met to review the bids. The two lowest bids received were
determined to be non-responsive because their vehicles did not meet the
specifications outlined in the Request for Quotations. Staff recommends that the
bid submitted by Owen Equipment in the amount of $409,234 be declared the
lowest responsible bidder. Staff has checked references supplied by the vendor
for previous contracts and has found no significant complaints.
Resource Impact
Funding is available for this purchase in Vehicle Replacement Fund Capital
Improvement Project VR-13000.
Policy Implications
Authorization of the contract does not represent any change to the existing
policy. Purchase of these vehicles supports the Comprehensive Plan by removing
older, more polluting vehicles from the roadways and replacing them with newer
more efficient ones.
Environmental Review
The vehicles being supplied are in conformance with all applicable emissions laws
and regulations. This purchase is categorically exempt from the California
Environmental Quality Act under the CEQA guidelines (Sections 15061 and 15304).
City of Palo Alto (ID # 4759)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 6/16/2014
Summary Title: Resolution for PABAC Membership and Bylaws
Title: Adoption of a Resolution to Establish the Palo Alto Bicycle Advisory
Committee (PABAC) as the Bicycle Advisory Committee for purposes of the
Transportation Development Act Program
From: City Manager
Lead Department: Planning and Community Environment
Recommendation
Staff recommends that Council approve the attached Resolution establishing the Palo Alto
Bicycle Advisory Committee (PABAC) as the Bicycle Advisory Committee as required under the
Transportation Development Act Program (Attachment A).
Background
The Transportation Development Act (TDA) program provides funding to local agencies as a
return to source based on gas tax revenue. The annual Palo Alto TDA allocation varies, but
averages about $65,000 per year. TDA funds are normally used to fund bicycle and pedestrian
improvements such as enhanced crosswalk facilities, bicycle-focused detectors for traffic
signals, and trail improvements to the Magical Bridge, to name just a few. On June 27, 2013 the
Metropolitan Transportation Commission adopted their Resolution No. 4108 (Attachment B)
requiring local agencies to have a Bicycle Advisory Committee (BAC) that is composed of both
bicyclists and pedestrians in order to continue to qualify for receipt of TDA funds. The MTC
resolution also discusses minimum requirements, including having at least three (3) members
appointed by the City Council.
The Palo Alto Bicycle Advisory Committee (PABAC) currently serves as an advisory body to the
City staff on matters related to bicycle planning and design. Although PABAC discusses
pedestrian issues, there is currently no formal pedestrian representation. Pedestrian issues
have historically been discussed through larger community outreach efforts, depending on
project size and location, or by the City-School Traffic Safety Partnership program for projects
near or impacting school routes.
The Valley Transportation Authority (VTA) notified local agencies of the MTC Resolution
mandate at the start of the year and notified cities that they must be in compliance with the
City of Palo Alto Page 1
resolution requirements by the end of June. The structure of BAC varies by City, but Palo Alto is
currently the only local agency in Santa Clara County whose membership is not council
appointed.
City staff met with PABAC during their March and April meetings to discuss how the committee
should adapt both to meet the resolution mandates and to better serve as an advisory body to
staff. PABAC and staff also participated in a retreat on March 19th to discuss the PABAC
structure.
The committee was supportive of expanding its role to formally evaluate and provide feedback
on pedestrian matters. Staff is also supportive of the committee expanding its role to include
pedestrian matters. Staff also agreed during the March retreat to help formalize PABAC
meetings through the assignment of an administrative staff position to serve as an action
minutes note taker at all meetings. Staff also formalized a commitment to include both traffic
engineering and safe routes to school staff participation at PABAC meetings. To help bring in
resident expertise on school-focused matters, the committee discussed and approved
establishing a formal relationship with the City-School Traffic Safety Committee via a liaison
from PABAC attending and reporting on items to their committee and vice-versa. The City-
School Traffic Safety Committee discussed the proposal during its April meeting and assigned a
representative to attend PABAC meetings.
The MTC Resolution discusses a minimum of three (3) appointed members but PABAC
preferred to have a resolution from the City Council formally identifying and acknowledging all
PABAC members and to highlight the interest of each member of the committee. PABAC also
requested assistance from the City in recruiting additional members. The City Clerk’s Office has
included an on-going recruitment on the Boards & Commissions website in response to the
request. PABAC also expressed interest in trying to recruit membership at the high school level
to bring in the perspective of a younger bicycling audience. Staff will work with Palo Alto
Unified School District to include outreach messaging as part of the new school year.
The Pedestrian and Bicycle Advisory Committee (PABAC) reviewed and modified their By-Laws
to reflect the inclusion of pedestrian elements within their committee focus (Attachment C).
This report recommends adoption of Resolution appointing PABAC members and approving the
new PABAC Bylaws.
To become a member of PABAC after the resolution is adopted, persons must attend a
minimum of three of 4 consecutive meetings. If the number of Council appointed members
falls below three, the City Clerk will issue a recruitment and staff will bring the matter to
Council for appointment.
Summary of Key Issues
The Bicycle & Pedestrian Transportation Plan adopted in July 2012 is currently under
implementation with 23 active bicycle boulevard or enhanced bikeway projects totaling $25M
City of Palo Alto Page 2
in active planning or improvements. PABAC provided monthly input during the development of
the plan and is participating in the community outreach and design phases of active bicycle
boulevard program projects.
Implementation of the bicycle boulevard program and overall bicycle network is a priority in the
Comprehensive Plan – Transportation Element. P!! is the city’s staff advisory body in the
development of bicycle transportation projects. The proposed bylaw modifications and
membership structure with a strong partnership with the City-School Traffic Safety Committee
will ensure a balanced committee with both bicycle and pedestrian interest. As PABAC
membership expands, the new bylaws promote membership with high school student and
senior interests to provide additional perspectives.
The City will take a more active role in assisting PABAC increase its membership and to attract
more diverse representation by posting volunteer opportunities on the City Clerk’s website for
other commission positions. The City will also work through the City-School Traffic Safety
Committee Partnership program to encourage high school student participation.
Policy Implications
PABAC serves as an advisory body to staff. The proposed resolution and bylaws would
formalize PABAC membership annually via resolution to satisfy requirements of the MTC –
Transportation Development Act requirements.
Timeline
A resolution formalize the PABAC membership and addition of pedestrian advisory
responsibilities must be completed by the end of June to satisfy MTC – Transportation
Development Act requirements.
Attachments:
Attachment A: Resolution Establishing Bicycle Advisory Committee (PDF)
Attachment B: MTC Resolution No. 4108 (PDF)
Attachment C: PABAC Bylaws - 051614 (PDF)
City of Palo Alto Page 3
Attachment A -
NOT YET APPROVED
Resolution No. ________
Resolution of the Council of the City of Palo Alto to Appoint Members to the
Palo Alto Bicycle and Pedestrian Advisory Committee
R E C I T A L S
A. Article III of the Transportation Development Act (TDA), Public Utilities Code
(PUC) Section 99200 et seq., authorizes the submission of claims to a regional transportation
planning agency for the funding of projects exclusively for the benefit and / or use of
pedestrians and bicyclists.
B. The Metropolitan Transportation Commission (MTC), as the regional
transportation planning agency for the San Francisco Bay region, has adopted MTC Resolution
No. 4108, entitled “Transportation Development Act, Article 3. Pedestrian and Bicycle Projects,”
which delineates procedures and criteria for submission of requests for the allocation of “TDA
Article III” funding.
C. MTC Resolution No. 4108 requires that, to be eligible for the allocation of TDA
Article III funds, each city must have a Bicycle Advisory Committee (BAC), composed of both
bicyclists and pedestrians, to review and prioritize TDA Article III bicycle and pedestrian projects
and to participate in the development and review of comprehensive bicycle plans.
D. MTC Resolution No. 4108 additionally requires that, to be eligible for the
allocation of TDA Article III funds, each city’s BAC must be composed of at least three (3)
members who live or work in the city and are appointed by the City Council.
E. The Palo Alto Bicycle and Pedestrian Advisory Committee is a BAC composed of
bicyclists and pedestrians who live or work in the City of Palo Alto, which reviews and prioritizes
TDA Article III bicycle and pedestrian projects and participates in the development and review
of comprehensive bicycle plans.
F. The City of Palo Alto desires to submit a request to MTC for the allocation of TDA
Article III funds to support projects that are for the exclusive benefit and / or use of pedestrians
and / or bicyclists.
The Council of the City of Palo Alto RESOLVES as follows:
SECTION 1. The Council of the City of Palo Alto hereby establishes a Bicycle
Advisory Committee (composed of both bicyclists and pedestrians) to review and prioritize TDA
Article III bicycle and pedestrian projects and to participate in the development and review of
comprehensive bicycle plans. At least three of the members of the BAC shall live or work in the
City and shall be appointed by the Council. Each of the three Council appointed members shall
serve a term of at least two (2) years, unless he or she resigns, is removed from office, or is
otherwise disqualified from serving as a member of the Committee. For purposes of conducting
140527 jb 0131210
NOT YET APPROVED
business in accordance with the Committee’s scope as established in this Resolution, a quorum
shall be 2 Council appointed members.
SECTION 2. The City Council appoints the following members, noting their
respective interests, to the Palo Alto Bicycle and Pedestrian Advisory Committee to serve on the
BAC:
Robert Neff (Chair), Bicycle
Eric Nordman (Vice-Chair), Bicycle
Paul Goldstein, Bicycle
Richard Swent, Pedestrian
Bill Courington, Bicycle
Ann Crichton, Pedestrian
Cedric De La Beaujardiere, Bicycle
William Robinson, Bicycle
Steve Rock, Bicycle
Jane Rothstein, Bicycle
William Zaumen, Bicycle
SECTION 3. If at any time, there exists less than three Council appointed members,
the City shall conduct recruitments and the Council shall make additional appointments to
assure the existence of three Council appointed members.
SECTION 4. The Council designates the following City employees, noting their
respective city interest, to provide administrative and technical support to the Committee:
Jaime Rodriguez, Engineering
Sylvia Star-Lack, Safe Routes to School
Diana Tamale, Administrative Support
/ /
/ /
/ /
/ /
/ /
/ /
/ /
140527 jb 0131210
__________________________ _____________________________
__________________________ _____________________________
_____________________________
_____________________________
NOT YET APPROVED
SECTION 5. The Council finds that the adoption of this resolution does not meet
the definition of a project under Public Resources Code Section 21065, thus, no environmental
assessment under the California Environmental Quality Act is required.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk
APPROVED AS TO FORM:
Senior Assistant City Attorney
Mayor
APPROVED:
City Manager
Director of Utilities
Director of Administrative Services
140527 jb 0131210
Attachment B
Date: June 26, 2013
W.I.: 1514
Referred By: PAC
RE: Transportation Development Act, Article 3. Pedestrian and Bicycle Projects.
METROPOLITAN TRANSPORTATION COMMISSION
RESOLUTION NO. 4108
WHEREAS, the Transportation Development Act (TDA), Public Utilities Code (PUC)
Section 99200 et seq., requires the Transportation Planning Agency to adopt rules and
regulations delineating procedures for the submission of claims for funding for pedestrian and
bicycle facilities (Article 3, PUC Section 99233.3); state criteria by which the claims will be
analyzed and evaluated (PUC Section 99401(a); and to prepare a priority list for funding the
construction of pedestrian and bicycle facilities (PUC Section 99234(b)); and
WHEREAS, the Metropolitan Transportation Commission (MTC), as the Transportation
Planning Agency for the San Francisco Bay Region, adopted MTC Resolution No. 875 entitled
"Transportation Development Act, Article 3, Pedestrian/Bicycle Projects", that delineates
procedures and criteria for submission of claims for Article 3 funding for pedestrian and bicycle
facilities; and
WHEREAS, MTC desires to update these procedures and criteria commencing with the
FY201415 funding cycle, now therefore be it
RESOLVED, that MTC adopts its policies and procedures for TDA funding for
pedestrian and bicycle facilities described in Attachment A ; and be it further
RESOLVED, that the prior policy governing allocation of funds contained in Resolution
No. 875 is superseded by this resolution, effective with the FY 201415 funding cycle.
METROPOLITAN TRANSPORTATION COMMISSION
Amy Rein Worth, Chair
The above resolution was approved by the
Metropolitan Transportation Commission
at a regular meeting of the Commission held
in Oakland, California, on June 26, 2013.
Date: June 26, 2013
W.I.: 1514
Referred By: PAC
Attachment B
Resolution No. 4108
Page 1 of 7
TRANSPORTATION DEVELOPMENT ACT, ARTICLE 3,
PEDESTRIAN/BICYCLE PROJECTS
Policies and Procedures
Eligible Claimants
The Transportation Development Act (TDA), Public Utilities Code Sections 99233.3 and 99234,
makes funds available in the ninecounty Metropolitan Transportation Commission (MTC)
Region for the exclusive use of pedestrian and bicycle projects. MTC makes annual allocations
of TDA Article 3 funds to eligible claimants after review of applications submitted by counties
or congestion management agencies.
All cities and counties in the nine counties in the MTC region are eligible to claim funds under
TDA Article 3. Joint powers agencies composed of cities and/or counties are also eligible
provided their JPA agreement allows it to claim TDA funds.
Application
1. Counties or congestion management agencies will be responsible for developing a program
of projects not more than annually, which they initiate by contacting the county and all
cities and joint powers agencies within their jurisdiction and encouraging submission of
project applications.
2. Claimants will send one or more copies of project applications to the county or congestion
management agency (see "Priority Setting" below).
3. A project is eligible for funding if:
a. The project sponsor submits a resolution of its governing board that addresses the
following six points:
1. There are no legal impediments regarding the project.
2. Jurisdictional or agency staffing resources are adequate to complete the project.
3. There is no pending or threatened litigation that might adversely affect the project
or the ability of the project sponsor to carry out the project.
4. Environmental and rightofway issues have been reviewed and found to be in such
a state that fund obligation deadlines will not be jeopardized.
5. Adequate local funding is available to complete the project.
6. The project has been conceptually reviewed to the point that all contingent issues
have been considered.
Attachment B
Resolution No. 4108
Page 2 of 7
b. The funding requested is for one or more of the following purposes:
1. Construction and/or engineering of a bicycle or pedestrian capital project
2. Maintenance of a multipurpose path which is closed to motorized traffic
3. Bicycle safety education program (no more than 5% of county total).
4. Development of a comprehensive bicycle or pedestrian facilities plans (allocations
to a claimant for this purpose may not be made more than once every five years).
5. Restriping Class II bicycle lanes.
Refer to Appendix A for examples of eligible projects.
c. The claimant is eligible to claim TDA Article 3 funds under Sections 99233.3 or
99234 of the Public Utilities Code.
d. If it is a Class I, II or III bikeway project, it must meet the mandatory minimum safety
design criteria published in Chapter 1000 of the California Highway Design Manual
(Available via Caltrans headquarters’ World Wide Web page); or if it is a pedestrian
facility, it must meet the mandatory minimum safety design criteria published in
Chapter 100 of the California Highway Design Manual (Available via Caltrans
headquarters’ World Wide Web page).
e. The project is ready to implement and can be completed within the three year
eligibility period.
f. If the project includes construction, that it meets the requirements of the California
Environmental Quality Act (CEQA, Public Resources Code Sections 21000 et seq.)
and project sponsor submits an environmental document that has been stamped by the
County Clerk within the past three years.
g. A jurisdiction agrees to maintain the facility.
h. The project is included in a locally approved bicycle, pedestrian, transit, multimodal,
complete streets, or other relevant plan.
Priority Setting
1. The county or congestion management agency (CMA) shall establish a process for
establishing project priorities in order to prepare an annual list of projects being
recommended for funding.
2. Each county and city is required to have a Bicycle Advisory Committee (BAC) to review
and prioritize TDA Article 3 bicycle and pedestrian projects and to participate in the
development and review of comprehensive bicycle plans. BACs should be composed of
both bicyclists and pedestrians.
Attachment B
Resolution No. 4108
Page 3 of 7
A city BAC shall be composed of at least 3 members who live or work in the city. More
members may be added as desired. They will be appointed by the City Council. The City
or Town Manager will designate staff to provide administrative and technical support to the
Committee.
An agency can apply to MTC for exemption from the city BAC requirement if they can
demonstrate that the countywide BAC provides for expanded city representation.
A county BAC shall be composed of at least 5 members who live or work in the county.
More members may be added as desired. The County Board of Supervisors or Congestion
Management Agency (CMA) will appoint BAC members. The county or congestion
management agency executive/administrator will designate staff to provide administration
and technical support to the Committee.
3. All proposed projects shall be submitted to the County or congestion management agency for
evaluation/prioritization. Consistent with the county process, either the Board of Supervisors
or the Congestion Management Agency (CMA) will adopt the countywide list and forward it
to MTC for approval.
4. The county or congestion management agency will forward to MTC a copy of the
following:
a) Applications for the recommended projects, including a governing body resolution,
stamped environmental document, and map for each, as well as a cover letter stating
the total amount of money being claimed; and confirmation that each project meets
Caltrans’ minimum safety design criteria and can be completed before the allocation
expires.
b) The complete priority list of projects with an electronic version to facilitate grant
processing.
c) A Board of Supervisors' or CMA resolution approving the priority list and
authorizing the claim.
MTC Staff Evaluation
MTC Staff will review the list of projects submitted by each county. If a recommended project
is eligible for funding, falls within the overall TDA Article 3 fund estimate level for that county,
and has a completed application, staff will recommend that funds be allocated to the project.
Attachment B
Resolution No. 4108
Page 4 of 7
Allocation
The Commission will approve the allocation of funds for the recommended projects. The
County Auditor will be notified by allocation instructions to reserve funds for the approved
projects. Claimants will be sent copies of the allocation instructions and funds should be
invoiced in accordance with the “Disbursement” section below.
Eligible Expenditures
Eligible expenditures may be incurred from the start of the fiscal year of award plus two
additional fiscal years. Allocations expire at the end of third fiscal year following allocation.
For example, if funds are allocated to a project in October 2014, a claimant may be reimbursed
for eligible expenses that were incurred on or after July 1, 2014. The allocation expires on June
30, 2017 and all eligible expenses must be incurred before this date. All disbursement requests
should be submitted by August 31, 2017.
Disbursement
1. The claimant shall submit to MTC the following, no later than two months after the grant
expiration date:
a) A copy of the allocation instructions along with a dated cover letter referring to
the project by name, dollar amount and allocation instruction number and the request
for a disbursement of funds;
b) Documents showing that costs have been incurred during the period of time
covered by the allocation.
c) With the final invoice, the claimant shall submit a one paragraph summary of
work completed with the allocated funds. This information may be included in the
cover letter identified in bullet “a” above and is required before final disbursement is
made. If the project includes completion of a Class I, II or III bicycle facility, this
information should be added to Bikemapper or a request should be made to MTC to
add it to Bikemapper.
2. MTC will approve the disbursement and, if the disbursement request was received in a
timely fashion and the allocation instruction has not expired, been totally drawn down nor
been rescinded, issue an authorization to the County Auditor to disburse funds to the
claimant.
Rescissions and Expired Allocations
Funds will be allocated to claimants for specific projects, so transfers of funds to other projects
sponsored by the same claimant may not be made. If a claimant has to abandon a project or
cannot complete it within the time allowed, it should ask the county or congestion management
Attachment B
Resolution No. 4108
Page 5 of 7
agency to request that MTC rescind the allocation. Rescission requests may be submitted to and
acted upon by MTC at any time during the year. Rescinded funds will be returned to the
county’s apportionment.
Allocations that expire without being fully disbursed will be disencumbered in the fiscal year
following expiration. The funds will be returned to county’s apportionment and will be available
for allocation.
Fiscal Audit
All claimants that have received an allocation of TDA funds are required to submit an annual
certified fiscal and compliance audit to MTC and to the Secretary of Business and Transportation
Agency within 180 days after the close of the fiscal year, in accordance with PUC Section
99245. Article 3 applicants need not file a fiscal audit if TDA funds were not expended (that is,
costs incurred) during a given fiscal year. However, the applicant should submit a statement for
MTC’s records certifying that no TDA funds were expended during the fiscal year. Failure to
submit the required audit for any TDA article will preclude MTC from making a new Article 3
allocation. For example, a delinquent Article 4.5 fiscal audit will delay any other TDA
allocation to the city/county with an outstanding audit. Until the audit requirement is met, no
new Article 3 allocations will be made.
TDA Article 3 funds may be used to pay for the fiscal audit required for this funding.
Attachment B
Resolution No. 4108
Page 6 of 7
Appendix A: Examples of Eligible Projects
1. Projects that eliminate or improve an identified problem area (specific safety hazards such
as hightraffic narrow roadways or barriers to travel) on routes that would otherwise
provide relatively safe and direct bicycle or pedestrian travel use. For example, roadway
widening, shoulder paving, restriping or parking removal to provide space for bicycles; a
bicycle/pedestrian bridge across a stream or railroad tracks on an otherwise useful route; a
segment of multipurpose path to divert young bicyclists from a high traffic arterial; a
multipurpose path to provide safe access to a school or other activity center; replacement
of substandard grates or culverts; adjustment of trafficactuated signals to make them
bicycle sensitive. Projects to improve safety should be based on current traffic safety
engineering knowledge.
2. Roadway improvements or construction of a continuous interconnected route to provide
reasonably direct access to activity centers (employment, educational, cultural,
recreational) where access did not previously exist or was hazardous. For example,
development of Multipurpose paths on continuous rightsofway with few intersections
(such as abandoned railroad rightsofway) which lead to activity centers; an appropriate
combination of Multipurpose paths, Class II, and Class III bikeways on routes identified as
high demand access routes; bicycle route signs or bike lanes on selected routes which
receive priority maintenance and cleaning.
3. Secure bicycle parking facilities, especially in high use activity areas, at transit terminals,
and at parkandride lots. Desirable facilities include lockers, sheltered and guarded check
in areas; selflocking sheltered racks that eliminate the need to carry a chain and racks that
accept Ushaped locks.
4. Other provisions that facilitate bicycle/transit trips and walk/transit. For example, bike
racks on buses, paratransit/trailer combinations, and bicycle loan or checkin facilities at
transit terminals, bus stop improvements, wayfinding signage.
5. Maintenance of multiple purpose pathways that are closed to motorized traffic or for the
purposes of restriping Class II bicycle lanes (provided that the total amount for Class II
bicycle lane restriping does not exceed twenty percent of the county’s total TDA Article 3
allocation).
6. Funds may be used for construction and plans, specification, and estimates (PS&E) phases
of work. Project level environmental, planning, and rightofway phases are not eligible
uses of funds.
7. Projects that enhance or encourage bicycle or pedestrian commutes, including Safe Routes
to Schools projects.
Attachment B
Resolution No. 4108
Page 7 of 7
8. Intersection safety improvements including bulbouts/curb extensions, transit stop
extensions, installation of pedestrian countdown or accessible pedestrian signals, or
pedestrian signal timing adjustments. Striping highvisibility crosswalks or advanced stop
back lines, where warranted.
9. Purchase and installation of pedestrian traffic control devices, such as Highintensity
Activated crossWalK (HAWK) beacons, rectangular rapid flashing beacons (RRFB), or
pedestrian safety “refuge” islands, where warranted.
10. Projects that provide connection to and continuity with longer routes provided by other
means or by other jurisdictions to improve regional continuity.
11. The project may be part of a larger roadway improvement project as long as the funds are
used only for the bicycle and/or pedestrian component of the larger project.
12. Bicycle Safety Education Programs. Up to five percent of a county's Article 3 fund may be
expended to supplement monies from other sources to fund public bicycle safety education
programs and staffing.
13. Comprehensive Bicycle and Pedestrian Facilities Plan. Funds may be allocated for these
plans (emphasis should be for accommodation of bicycle and walking commuters rather
than recreational uses). A city or county may not receive allocations for these plans more
than once every five years. Environmental documentation and approval necessary for plan
adoption is an eligible expense.
Attachment C -
PALO ALTO PEDESTRIAN AND BICYCLE ADVISORY COMMITTEE
Bylaws
The Pedestrian and Bicycle Advisory Committee is a staff advisory Committee which
reports to the Chief Transportation Official. The primary staff liaisons to the Committee are from the Transportation Division. Staff members from other departments of City government participate on an as needed basis.
Section 1: Duties of the Committee
The Committee's advisory function shall be to review all issues related to bicycling and pedestrian travel that fall within the subject areas of engineering, enforcement, education and
encouragement. The types of activities include, but are not limited to the following:
1. Review and prioritize the City's annual Transportation Development Act (TDA) Article 3 list of projects and report the Committee's recommendations to the City Council.
2. Review and comment on the design of Capital Improvement Program projects, street
improvements, traffic signal projects, parking facilities projects, etc. insofar as they relate to bicycling and pedestrian travel.
3. Assist in the development and implementation of the City's Bicycle and Pedestrian
Transportation Plan.
4. Review and comment on changes and updates to the Palo Alto Comprehensive Plan,
Zoning Ordinance, Municipal Code and other policy documents where they relate to bicycling and pedestrian travel.
5. Evaluate and make recommendations to City staff regarding the design standards for all
bicycle and pedestrian facilities, and all roadway improvement projects insofar as they relate to bicycle and pedestrian travel.
6. Evaluate and make recommendations regarding bicycle and pedestrian transportation
planning.
7. Work with staff to promote bicycling and walking as viable forms of transportation.
8. Assist in the development and dissemination of bicycle and pedestrian safety awareness and education materials to the community.
9. Serve as a liaison between the City and the community and community groups on issues
related to bicycling and pedestrian travel.
10. Provide assistance and input to the Police Department on enforcement of Vehicle
Code and Municipal Code ordinances, theft prevention, and legislation related to bicycling.
11. Review and comment on private development plans from the perspective of improving
bicycle and/or pedestrian facility safety and access.
12. Identify safety concerns related to bicycle and pedestrian travel for consideration in
future Capital Improvement Projects.
Proposed changes as of 5/21/2014 PABAC Bylaws Page 1 of 4
13. Evaluate and recommend changes to reduce conflicts that arise when bicyclists and pedestrians share crossings, paths, tunnels and other facilities.
Section 2: Officers
The Committee shall elect a Chair and Vice Chair at the first meeting of the calendar
year.
Section 3 Membership
Members of the Pedestrian and Bicycle Advisory Committee should have a strong
interest in and enthusiasm for non-motorized transportation facilities, especially as these facilities affect the following groups: school-aged children, seniors, and those with accessibility
needs. As needed, special representatives from the public schools or other agencies serving
these groups may be nominated to the Committee.
There is no specific number of member seats or limit on membership. Membership is
open to interested persons who walk or bicycle and live or work in Palo Alto or Stanford. To become a voting member, the candidate should attend 3 consecutive meetings (or must attend
3 of 4 consecutive meetings). Special representatives, such as high school students,
City/School Traffic Safety Committee members, and Palo Alto Unified School District representatives, may become voting members immediately upon a vote of the members.
Section 4 Meetings
Regular meetings of the Committee shall be held on the first Tuesday of the month at such times as the Committee may agree upon.
Special meetings of the full Committee may be scheduled as needed by the Chair. The
Chair may also appoint special sub-Committees as required to study particular issues and report back to the full Committee.
Meetings will be held monthly except in July or December.
Section 5 Quorum
A majority of the membership of the Committee constitutes a quorum for conducting business. Decisions of the Committee shall be made by a majority vote of the members present at such meetings.
Section 6 Attendance
Members are expected to maintain a regular attendance record. Members missing 4
meetings within a 6 month period will be removed from the active membership roster.
Membership can be reestablished as described in section 3.An effort should be made by members to contact staff or the Chair prior to a meeting they cannot attend.
Proposed changes as of 5/21/2014 PABAC Bylaws Page 2 of 4
Section 7 Conduct of Meetings
The Chairperson or Vice Chairperson, shall take the chair at the time designated for the start of the meeting and shall call the meeting to order.
Any member of the Committee or member of the public wishing to address the
Committee shall first be recognized by the presiding officer. No person, other than the person having the floor, shall enter into any discussion without being recognized by the presiding
officer.
The Committee may, by a majority vote of its members, adopt or amend its procedural rules to be followed during meetings.
Section 8: Staff Responsibilities
The level of staff assistance provided to the Committee by a member of the Transportation Division staff is categorized as liaison in nature and may consist of the following
duties:
1. Schedule meetings and arrange meeting space
2. Assist chair in preparation of agenda
3. Distribute the agenda packet to members via email and make the agenda available to
the public via the City website.
4. Prepare and/or distribute “action minutes” of meeting proceedings
5. Attend regular Committee meetings to represent the Traffic Engineering and Safe
Routes to School Program units
6. Identify and inform the Committee of projects and other programs that will occur
during the year that relate to bicycling and are appropriate for review by the
Committee
7. Facilitate transmission of Committee's concerns to the City Manager and City Council
8. Coordinate contact with other city staff or advisory bodies as necessary
9. Conduct orientation of new Committee members
10. Maintain the PABAC email list.
Section 9: Bylaw Amendments
These bylaws may be amended by the following process. The amendment must be
listed on the agenda for a PABAC meeting. Members will discuss and vote on the amendment.
Proposed changes as of 5/21/2014 PABAC Bylaws Page 3 of 4
If the amendment is approved by two-thirds of the Committee in attendance, the amendment will
be forwarded to the City Council for final approval.
Proposed changes as of 5/21/2014 PABAC Bylaws Page 4 of 4
City of Palo Alto (ID # 4669)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 6/16/2014
City of Palo Alto Page 1
Council Priority: Environmental Sustainability
Summary Title: Amendments to sPower PPAs
Title: Approval of Amendments to Power Purchase Agreements with
Elevation Solar C LLC and Western Antelope Blue Sky Ranch B LLC
From: City Manager
Lead Department: Utilities
Recommendation
Staff recommends that Council adopt the attached resolutions (Attachment A, B) to:
(1) Approve the attached first amendment (Attachment C) to the Power Purchase
Agreement (PPA) between the City of Palo Alto (City) and Elevation Solar C LLC
(Elevation) to change the site location and make other associated changes, including to
the expected energy production of the facility (Elevation PPA Amendment), which
changes shall result in a higher not to exceed amount under the amended Elevation PPA
of $226 million;
(2) Waive the application of the anti-speculation requirement of Section D.1 of the City’s
Energy Risk Management Policy as it may apply to surplus electricity purchases resulting
from the City’s approval of the Elevation PPA Amendment, including during the 2017-
2020 time frame, due to the variability of the City’s hydroelectric resources and the
potential uncertainties associated with the timeliness and viability of the renewable
energy projects in the City’s portfolio that are still under development;
(3) Approve the attached first amendment (Attachment D) to the PPA with Western
Antelope Blue Sky Ranch B LLC (Blue Sky B) to account for the fact that the facility will
deliver capacity rights, along with renewable energy, to the City, and to provide for the
delivery of these capacity rights and the associated payment by the City for such
delivery (Blue Sky B PPA Amendment) , which changes shall result in a higher not to
exceed amount under the amended Blue Sky B PPA of $125 million;
City of Palo Alto Page 2
(4) Delegate to the City Manager or his designee, the authority to execute on behalf of the
City, the Elevation PPA Amendment, and the two contract term extensions available
under the PPA with Elevation (Elevation PPA), and any documents necessary to
administer the Elevation PPA that are consistent with the Palo Alto Municipal Code and
City Council-approved policies; and
(5) Delegate to the City Manager or his designee, the authority to execute on behalf of the
City, the Blue Sky B PPA Amendment, and the two contract term extensions available
under the PPA with Blue Sky B (Blue Sky B PPA), and any documents necessary to
administer the Elevation PPA that are consistent with the Palo Alto Municipal Code and
City Council-approved policies.
Executive Summary
In June 2013, Council approved the PPAs with Elevation and Blue Sky B to obtain all of the
electric output of the two solar photovoltaic (PV) electric generating facilities over 25-year
terms with two additional five-year extension term options available for each project. The PPAs
both included milestones for the projects to achieve their commercial operation date (COD) by
December 31, 2016. The full text of the Elevation PPA and Blue Sky B PPA is available in Staff
Report 3845.
Elevation was originally planned to be built at a site in western Fresno County; however, the
project developer, Sustainable Power Group (sPower), recently learned that interconnection
construction delays would have caused the COD to be delayed to April 2017. In order to avoid
this delay—which would have compromised the project’s construction financing—sPower
proposed changing the project site to a location in northern Los Angeles County, very close to
where Blue Sky B is to be located. At the new site, the 40-megawatt (MW) project is expected
to be able to begin operating by June 30, 2016, almost a year earlier than at the original site.
And because the proposed site has a significantly better solar resource than the original site,
the project will deliver more electric output to the City, which necessitates an increase in the
not to exceed spending authority amount of the PPA to $226 million.
Under the original Blue Sky B PPA, the City and sPower did not anticipate that the plant would
generate capacity rights as part of the output it would deliver. (The City is required to procure a
certain volume of capacity rights in order to satisfy requirements established by the California
Independent System Operator, or CAISO.) However, since the time the City executed the PPA,
sPower has developed an alternative interconnection position where it will be able to
interconnect the plant and deliver capacity rights along with renewable energy to the City. Staff
and sPower have negotiated a capacity price of $5 per megawatt-hour (MWh) that the City will
pay in addition to the energy price originally agreed to in the PPA to account for the increased
costs associated with the alternative interconnection position. However, staff negotiated a
clause in the Blue Sky B Amendment whereby the City only pays this additional capacity price
provided that the project’s point of interconnection to the grid is in an area designated by
City of Palo Alto Page 3
CAISO as a “Local Capacity Requirements” (LCR) area, and therefore eligible to be counted
towards the City’s LCR. The addition of the capacity rights payments to the Blue Sky B PPA
necessitates an increase in the not to exceed spending authority amount of the PPA to $125
million.
When operational, the Elevation project will provide about 10% of the City’s total electric
needs, and the Blue Sky B project will provide about 5%. Together, the two projects will
increase the City’s percentage of renewable resources from 30% to 45% of its total needs.
Discussion
As part of ongoing efforts to meet the City’s Renewable Portfolio Standard (RPS) of at least 33%
of sales from qualifying renewable resources by 2015, Council approved the Elevation PPA and
the Blue Sky B PPA for the two solar PV facilities in June 2013 (Resolution 9344, Staff Report
3845).
Each of the PPAs included several project development “milestones” and established deadlines
for their completion. The milestones included: obtaining site control, obtaining all necessary
permits, executing interconnection agreements with the owners of the local transmission and
distribution system, obtaining construction financing, starting construction, and achieving
commercial operation. For both PPAs, the COD deadline was December 31, 2016.
Elevation PPA Amendment
For large projects such as these, with numerous development steps to be completed, it is
relatively common for obstacles and opportunities to arise that require changes to plans. In the
case of the Elevation project, the obstacle that arose was the large number of solar PV projects
being planned for the western Fresno County area. Due to those other projects, a significant
number of transmission system upgrades were required in order to interconnect the Elevation
project to the grid at the original location. As a result, the owner of the transmission system in
the area (PG&E) pushed the scheduled completion date of the interconnection construction out
from mid-2016 to April 2017 for this project. Such delays have become commonplace in the
renewable energy industry; recently, the City twice approved PPA amendments to extend the
COD deadline for another renewable energy facility to accommodate similar interconnection
delays (Staff Report IDs 4218 and 4432).
If the Elevation project’s COD was to be delayed until April 2017 or later, the PPA obligates the
project owner to pay the City liquidated damages in the amount of approximately $83,300 per
month of delay. More importantly, any potential for the project COD to be delayed beyond
December 31, 2016, would most likely prevent the project from obtaining construction
financing, given that current federal tax credits for solar PV projects drop sharply for projects
that begin operating after the end of 2016; without the more generous tax credits that project
would not be economic to develop.
City of Palo Alto Page 4
In order to avoid this delay, sPower has proposed changing the project site to a location in
northern Los Angeles County, very close to where the Blue Sky B project is to be located. At the
new site, the project is expected to be able to begin operating by June 30, 2016 – almost a year
earlier than at the original site; however, the contractually guaranteed COD deadline shall
remain December 31, 2016.
Under the Elevation PPA Amendment, the project will be sited on approximately 350 acres
comprised of a combination of properties that Elevation has listed in Exhibit A-1 to the
Elevation PPA Amendment. Unlike the Elevation PPA, in which all properties listed in Exhibit A-
1 are currently under site control, in the Elevation PPA Amendment, some of the listed
properties are currently under site control by sPower and some are not. However, the risks
associated with this change are expected to be minimal since sPower is still required to obtain
site control by the date certain identified in the site control milestone (Section 4.3(b)(i)) in the
Elevation PPA Amendment. If sPower fails to do so, the City retains its right (but not the
obligation) under section 4.3(f) of the Elevation PPA to terminate the agreement without
liability of either Party to the other.
And because the proposed site has a significantly better solar resource than the original site,
the project is expected to deliver more electric output to the City: approximately 100,000 MWh
per year, compared to 80,000 MWh per year at the original site. The contract price will remain
the same as in the original PPA ($68.77 per MWh), and as at the originally planned site, the
project will provide the City with both energy and capacity rights. Both the original site and the
proposed site are located in areas currently defined by CAISO as capacity-constrained, which
means that the project’s capacity can be used to satisfy the City’s LCR, as was expected of the
project at the original site.
In addition to the project site change and increase in overall energy production, the proposed
Elevation PPA amendment includes a number of modifications to the project development
milestone dates that are necessary to accommodate the new project’s schedule. One of those
milestone date changes that staff negotiated was an earlier targeted COD date of June 30,
2016.
Finally, the original Elevation PPA included a provision enabling sPower to terminate the
contract without penalty in the event that it was unable to obtain construction financing for the
project. As part of the package of proposed PPA amendments, staff negotiated a significant
limitation of this termination right—essentially eliminating it with the exception of the specific
scenario where the United States International Trade Commission levies import tariffs on all
Chinese-manufactured solar panels.
In addition to the modifications described in detail above, the Elevation Amendment also
includes other conforming changes necessary to clarify or otherwise effectuate the Elevation
Amendment. Staff believes that the proposed changes to the Elevation PPA terms enhance the
viability of the project.
City of Palo Alto Page 5
Blue Sky B PPA Amendment
In the case of the Blue Sky B project, the proposed Blue Sky B Amendment arises as a result of a
development opportunity, rather than an obstacle. When the City approved the Blue Sky B PPA
last year, it was anticipated that the project would interconnect to the grid as an “energy only”
resource – meaning that it would not generate any capacity rights for the project owner or the
City. For the contract price of $68.77 per MWh, the City expected to receive all of the energy
output of the 20 MW project, but did not expect to be able to use the project to meet its
capacity obligations.
However, since the PPA was approved, sPower has developed a new interconnection queue
position with CAISO that it plans to use to accommodate a number of the projects that it is
developing in the northern Los Angeles County area, including the Elevation project. The new
queue position will enable all of these projects to generate capacity rights in addition to energy,
although it will also require sPower to pay significantly higher interconnection costs for this
project than it would have under the original “energy only” queue position.
In recognition of these increased interconnection costs, as well as the additional value the
project will provide the City through the capacity rights it will deliver, staff and sPower
negotiated a capacity price of $5 per MWh to be paid by the City (in addition to the energy
price of $68.77 per MWh) for all of the Capacity Rights associated with the project’s output.
This capacity price will only be applicable so long as the project’s point of interconnection is in
an area designated by CAISO as a LCR area, and therefore eligible to be counted towards the
City’s LCR. If CAISO redefines the boundaries of the LCR area such that the project no longer
counts as a local capacity resource, the City would still be able to use the project’s capacity
towards its system capacity requirements, but the capacity price to the City would drop to zero.
(At current market prices, the value of local capacity is about twice the value of system
capacity.) This provision shields the City from the risk of over-paying for the capacity rights of
this project in the event that CAISO redefines the boundaries of the LCR area in which the
project is currently located. In addition, staff believes that the capacity price of $5 per MWh is a
very reasonable price to pay for valuable local capacity counting rights. Staff estimates that the
value of these rights, levelized over the entire term of the PPA, is approximately $8-$9 per
MWh.
Finally, just as with the proposed amendments to the Elevation PPA, the proposed Blue Sky B
amendments include some modifications to the development milestone dates—including the
acceleration of the targeted COD date to June 30, 2016—as well as the limitation of the project
owner’s PPA termination right related to obtaining construction financing and other conforming
changes necessary to clarify or otherwise effectuate the Blue Sky B Amendment. Staff believes
that the proposed changes to the Blue Sky B PPA enhance the overall value of the project.
Summary
City of Palo Alto Page 6
If approved by Council, the proposed amendments to the Elevation PPA and the Blue Sky B PPA
will result in the City receiving additional low-cost renewable energy (from the Elevation
project), additional value (from the capacity rights of the Blue Sky B project), more favorable
contract terms under both PPAs, and more highly viable projects as well.
If Council declines to approve the proposed amendments to the two PPAs, sPower will likely
terminate the Elevation PPA (without penalty) owing to the unacceptable construction
financing risk at the original project location. The Blue Sky B PPA would most likely continue,
with sPower developing the project under the original interconnection queue position as an
energy only resource, and the City would not receive any capacity rights from the project. In
this case, staff would need to procure additional renewable energy and local capacity, to
replace the energy that the Elevation project would have delivered and the capacity rights that
the Blue Sky B project would have delivered. The cost of these replacement supplies would
likely be greater than the cost of the output from the Elevation and Blue Sky B projects under
the proposed package of amendments.
Resource Impact
Approving the recommendation will result in a cost impact of up to $46 million (if the two
extension term options are exercised, bringing the total contract term to 35-years) for the
Elevation PPA due to the increase in renewable energy output that the project will deliver to
the City. The annual cost increase related to the Elevation PPA amendment will be up to $1.43
million.
In addition, approving the recommendation will result in a cost impact of up to $8.1 million (if
the two extension term options are exercised, bringing the total contract term to 35-years) for
the Blue Sky B PPA due to the cost of acquiring the capacity rights that the project will be able
to deliver to the City. The annual cost increase related to the Blue Sky B PPA amendment will be
up to $252,000. The $8.1 million cost increase for the capacity right through the PPA will
reduce the City’s expected cost to purchase local capacity to meet its requirements by about
$15.6 million, for a net benefit of $7.5 million over the full 35-year term of the contract.
Approving the recommendation will also result in the City receiving the above renewable
energy and capacity rights approximately six months earlier than scheduled under the existing
PPAs.
Policy Implications
Approval of the proposed amendments is in conformance with the City’s Long-term Electric
Acquisition Plan (LEAP), specifically the City’s Renewable Portfolio Standard to meet at least
33% of the electric sales from renewable energy by 2015. Approval of the proposed
amendments would also further the City’s efforts to achieve a carbon neutral electric supply
portfolio entirely through the acquisition of additional “hard resources” that supply the City
with both energy and environmental attributes (Staff Report 3550).
City of Palo Alto Page 7
Environmental Review
Approval of the proposed amendments does not meet the definition of a project under the
California Environmental Quality Act (CEQA), pursuant to Public Resources Code Section 21065.
However, the City intends to receive output from two facilities that will constitute projects for
the purposes of CEQA. The project developer will be responsible for acquiring necessary
environmental reviews and permits on the projects to be developed.
During the development phase of the projects, the City will become a “responsible agency”
under the CEQA proceedings. As such, the PPA allows for the City to review the projects’ CEQA
documents and issue notices of determination with respect to its review of the projects. Staff
anticipates working with the City Attorney’s Office and the Planning Department to undertake
these assessments.
Attachments:
Attachment A: Resolution Approving Amendment No. 1 to the Elevation Solar C PPA
(PDF)
Attachment B: Resolution Approving Amendment No. 1 to the Western Antelope Blue
Sky Ranch B PPA (PDF)
Attachment C: Amendment No. 1 to the Elevation Solar C PPA (PDF)
Attachment D: Amendment No. 1 to the Western Antelope Blue Sky Ranch B PPA (PDF)
NOT YET APPROVED
Resolution No. _________
Resolution of the Council of the City of Palo Alto Approving
Amendment No. 1 to the Power Purchase Agreement with Elevation
Solar C LLC for the Purchase of Solar Electricity
R E C I T A L S
A. On June 17, 2013, Council approved the power purchase agreement (“PPA”) with
Elevation Solar C LLC (“Elevation” or “Seller”) for the purchase of electricity from Seller’s 40
MW(ac) photovoltaic (“PV”) solar electric generating facility (the “Plant”) originally planned to
be built and located in Fresno County, California (“Original Site”) at a cost not to exceed $154
million with a Commercial Operation Date (“COD”) deadline of December 31, 2016.
B. The PPA is for a twenty-five year base contract term and will allow the City or
Seller to extend the PPA at either party’s option for an additional five-year term (First Option).
After the First Option is exercised, the PPA allows the City to extend the PPA at its sole option
for an additional five-year term (Second Option).
C. Seller now desires to change the site for the Plant to a location in northern Los
Angeles County, California (the “New Site”), where it can more efficiently build and
interconnect the Plant.
D. The PPA permits Seller to build the Plant at an alternate location, provided that
the City provides written consent to the site change, which consent shall not be unreasonably
withheld.
E. The solar insolation is significantly greater at the New Site than at the Original
Site, resulting in an increase in expected annual energy production from the New Plant as
compared to the Original Plant, which would require Council to increase the cost under the PPA
from a not to exceed amount of $154 million to a potential of $226 million over the base
contract term, First Option and Second Option of the PPA.
F. At the New Site, Seller agrees to attempt to achieve COD by June 30, 2016, which
is six months earlier than the COD of December 31, 2016 anticipated at the Original Site;
however, the contractually guaranteed COD deadline shall remain December 31, 2016.
G. The City and Seller wish to approve Amendment No. 1 (the “Amendment”) to the
PPA to account for the relocation to the New Site, the associated change in the expected
energy production of the Plant, the earlier targeted operating date of the Plant, to limit Seller’s
financing termination rights under Section 4.3(k) of the PPA, and to make other changes to the
PPA to clarify or otherwise effectuate the Amendment.
140610 jb 0180044
NOT YET APPROVED
H. Approval of the Amendment may result in surplus electric purchases that are
inconsistent with the anti-speculation requirement of section D.1 of the City’s existing Energy
Risk Management Policy, including during the 2017-2020 time frame, due to variability of the
City’s hydroelectric resources, and potential uncertainties associated with the timeliness and
viability of the renewable energy projects in the City’s portfolio still under development.
The Council of the City of Palo Alto RESOLVES as follows:
SECTION 1. The Council approves Amendment No. 1 to the PPA between Elevation
Solar C LLC, as seller, and the City of Palo Alto, as buyer, with a delivery term of the amended
PPA that is up to thirty-five (35) years (including the First Option and Second Option),
commencing upon the COD for the Plant which shall be no later than December 31, 2016, but
may occur by June 30, 2016. Spending authority under the amended PPA shall not exceed two
hundred and twenty-six million dollars ($226,000,000).
SECTION 2. The Council delegates to the City Manager, or his designee, the authority
to execute the Amendment on behalf of the City, and the authority to execute any documents
necessary to administer the PPA, as amended, that are consistent with the Palo Alto Municipal
Code and City Council approved policies.
SECTION 3. As permitted by section 2.30.290 of the Palo Alto Municipal Code, the
Council delegates to the City Manager, or his designee, the authority to exercise the First
Option and Second Option as defined herein, to extend the twenty-five year base contract to a
full thirty-five year contract term for the City.
SECTION 4. With respect to the Council’s approval of the Amendment referred to in
Section 1 above, the Council waives the anti-speculation requirement of Section D.1 of the
City’s existing Energy Risk Management Policy, as that requirement may apply to surplus
electricity purchases caused by the City’s approval of the Amendment.
SECTION 5. The Council’s approval of this Amendment does not meet the definition
of a project under the California Environmental Quality Act (CEQA), pursuant to Public
Resources Code Section 21065. However, the City intends to receive output from a project that
will constitute a project for the purposes of CEQA. The project developer will be responsible for
acquiring necessary environmental reviews and permits on the project to be developed.
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140610 jb 0180044
NOT YET APPROVED
During the development phase of the project, the City will become a “responsible agency”
under the CEQA proceedings. As such, the PPA allows for the City to review the project CEQA
documents and issue a notice of determination with respect to its review of the projects. Staff
anticipates working with the City Attorney’s Office and the Planning Department to undertake
this assessment and make a determination.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
___________________________ ___________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
___________________________ ___________________________
Senior Deputy City Attorney City Manager
___________________________
Director of Utilities
___________________________
Director of Administrative
Services
140610 jb 0180044
NOT YET APPROVED
Resolution No. _________
Resolution of the Council of the City of Palo Alto Approving
Amendment No. 1 to the Power Purchase Agreement with Western
Antelope Blue Sky Ranch B LLC for the Purchase of Solar Electricity
R E C I T A L S
A. On June 17, 2013, Council approved the power purchase agreement (“PPA”) with
Western Antelope Blue Sky Ranch B LLC (“Blue Sky B” or “Seller”) for the purchase of energy
from Seller’s 20 MW(ac) photovoltaic (“PV”) solar electric generating facility (the “Plant”) at a
cost not to exceed $97 million with a Commercial Operation Date (“COD”) deadline of
December 31, 2016.
B. The PPA is for a twenty-five year base contract term and allows the City or Seller
to extend the PPA at either party’s option for an additional five-year term (First Option). After
the First Option is exercised, the PPA allows the City to extend the PPA at its sole option for an
additional five-year term (Second Option).
C. At the time of execution of the PPA, Seller was to deliver energy, but not any
capacity rights, as part of the output delivered to the City.
D. Seller has developed an alternative interconnection position where it will be able
to interconnect the Plant and deliver to the City capacity rights for an additional five dollars
($5.00) per MWh of Energy, along with energy Seller is already delivering to the City, and the
City can use such capacity rights to satisfy its capacity requirements under the California
Independent System Operator (CAISO), or sell them to another entity.
E. The City desires and Seller has agreed that the additional payment from the City
to Seller for the aforementioned capacity rights shall only be in effect so long as Seller obtains
Full Capacity Deliverability Status for the Plant, and so long as the Plant’s point of
interconnection to the electric grid is in an area designated as a Local Capacity Requirements
area or the equivalent by the CAISO.
F. With the alternative interconnection position, Seller may be able to achieve COD
by June 30, 2016, which is six months earlier than the COD of December 31, 2016 under the
current PPA; however, the contractually guaranteed COD deadline shall remain December 31,
2016.
G. The City and Seller now wish to approve Amendment No. 1 (“the Amendment”)
to the PPA to account for the delivery of the aforementioned capacity rights as well as the
associated payment from the City to Seller for such capacity rights under specified conditions;
to provide for the earlier targeted COD; to limit Seller’s financing termination right pursuant to
140610 jb 0180045
NOT YET APPROVED
Section 4.3(k) of the PPA; and to make other changes to the PPA to clarify or otherwise
effectuate the Amendment.
H. Under the current PPA, in the event the City desires to exercise the First Option,
the not to exceed cost under the PPA will be $97 million. If the City approves Amendment No.
1 and desires to exercise the Second Option, the additional five years plus the payments for the
capacity rights will bring the not to exceed cost to $125 million over the potential full 35 year
term of the PPA (including exercise of First and Second Option).
The Council of the City of Palo Alto RESOLVES as follows:
SECTION 1. The Council approves Amendment No. 1 to the PPA between Western
Antelope Blue Sky Ranch B LLC, as seller, and the City of Palo Alto, as buyer, with a delivery
term of up to thirty-five (35) years (including First Option and Second Option), commencing
upon the COD for the Plant which shall be no later than December 31, 2016, but may occur by
June 30, 2016. Spending authority under the PPA shall not exceed one hundred twenty five
million dollars ($125,000,000).
SECTION 2. The Council delegates to the City Manager, or his designee, the authority
to execute the Amendment on behalf of the City, and the authority to execute any documents
necessary to administer the PPA, as amended, that are consistent with the Palo Alto Municipal
Code and City Council approved policies.
SECTION 3. As permitted by section 2.30.290 of the Palo Alto Municipal Code, the
Council delegates to the City Manager, or his designee, the authority to exercise the First
Option and Second Option as defined herein, to extend the twenty-five year base contract to a
full thirty-five year contract term for the City.
SECTION 4. The Council’s approval of this Amendment does not meet the definition
of a project under the California Environmental Quality Act (CEQA), pursuant to Public
Resources Code Section 21065. However, the City intends to receive output from a project that
will constitute a project for the purposes of CEQA. The project developer will be responsible for
acquiring necessary environmental reviews and permits on the project to be developed.
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140610 jb 0180045
NOT YET APPROVED
During the development phase of the project, the City will become a “responsible agency”
under the CEQA proceedings. As such, the PPA allows for the City to review the project CEQA
documents and issue a notice of determination with respect to its review of the projects. Staff
anticipates working with the City Attorney’s Office and the Planning Department to undertake
this assessment and make a determination.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
___________________________ ___________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
___________________________ ___________________________
Senior Deputy City Attorney City Manager
___________________________
Director of Utilities
___________________________
Director of Administrative
Services
140610 jb 0180045
0180047 jrm 051114
AMENDMENT NO. 1 TO POWER PURCHASE AGREEMENT
BETWEEN THE CITY OF PALO ALTO AND
ELEVATION SOLAR C LLC
This Amendment No. 1 (“First Amendment”) to the Power Purchase Agreement dated July 10,
2013 (“Agreement”) is entered into as of ___________________, 2014 (the “Amendment
Date”), by and between the CITY OF PALO ALTO, a California chartered municipal corporation of
the State of California (“CITY” or “BUYER”), and Elevation Solar C LLC, a Delaware Limited
Liability Company, located at 2 Embarcadero Center, Suite 410, San Francisco, California 94111
(“SELLER”) (collectively the “Parties”).
R E C I T A L S
1. The Agreement was entered into between the Parties for the sale of energy to
Buyer from Seller’s 40 MW(ac) photovoltaic solar electric generating facility (the “Plant” as
more particularly defined in the Agreement);
2. Seller has identified a different Site and Point of Interconnection where it can
more efficiently build and interconnect the Plant and which will result in changes to the
expected Energy production of the Plant;
3. Seller has determined that it can achieve Commercial Operation on June 30,
2016 rather than December 31, 2016;
4. Buyer desires and Seller has agreed to certain changes to the Agreement related
to milestones, Seller obligations, and termination rights; and
5. Buyer and Seller wish to amend the Agreement to account for the change in the
Site and Point of Interconnection, certain Agreement milestones, Seller Obligations, and
termination rights, as well as associated changes in the expected Energy production of the
Plant.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions
of this First Amendment, the Parties agree:
SECTION 1. The following is added to Article I in its proper alphabetical order:
“Capacity Rights: The rights, whether in existence as of the Effective Date or arising
hereafter during the Agreement Term, to capacity, resource adequacy, associated attributes
and/or reserves or any of the foregoing associated with the electric generating capability of the
Plant, including the right to resell such rights.”
SECTION 2. The definition of “Output” is hereby deleted in its entirety and replaced
with the following:
AMENDMENT NO. 1 TO POWER PURCHASE AGREEMENT
BETWEEN THE CITY OF PALO ALTO AND
ELEVATION SOLAR C LLC
2
0180047 jrm 051114
“Output: All Energy, Capacity Rights, Environmental Attributes; as well as any
ancillary services and any other reliability or power attributes associated with
the Initial Capacity and/or associated Energy.”
SECTION 3. The definition of “Participating TO or Participating Transmission Owner”
is hereby deleted in its entirety and replaced with the following:
“Participating Transmission Owner, Participating TO or PTO: Southern
California Edison Company, a California corporation, or any successor thereto
acting as transmission provider from the Site to the CAISO grid.”
SECTION 4. The definition of “Point of Interconnection” is hereby deleted in its
entirety and replaced with the following:
“Point of Interconnection: The point on the electrical system where the Plant is
physically interconnected with the PTO’s System, which is anticipated to be at
Southern California Edison’s Antelope Substation.”
SECTION 5. The definition of “Site” is hereby deleted in its entirety and replaced with
the following:
“Site: The real property on which the Plant is to be built and located near
Lancaster, CA as more particularly described in Exhibit A, or such other real
property selected by Seller not identified in Exhibit A, and to which Buyer
consents in writing, which consent shall not be unreasonably withheld.”
SECTION 6. Section 4.1(h) is hereby deleted in its entirety and replaced with the
following:
“(h) Negotiate and enter into an Interconnection Agreement with the Participating
TO to enable Seller to transmit Energy to the Point of Interconnection and into
the CAISO‐controlled grid. Seller shall be responsible for and pay all costs and
charges arising under the Interconnection Agreement in compliance with the
Interconnection Agreement and associated rules and requirements in place as of
the Commercial Operation Date. Seller shall obtain a Full Capacity Deliverability
Status Finding from the CAISO and provide to Buyer a copy of such finding as
soon as reasonably possible, which date is expected to be no later than COD.
Seller's interconnection, distribution and/or transmission arrangements shall
provide for Seller to obtain and maintain Full Capacity Deliverability Status
throughout the remainder of the Term of the Agreement.”
AMENDMENT NO. 1 TO POWER PURCHASE AGREEMENT
BETWEEN THE CITY OF PALO ALTO AND
ELEVATION SOLAR C LLC
3
0180047 jrm 051114
SECTION 7. Section 4.3(b) is hereby deleted in its entirety and replaced with the
following:
“(b) The following events are all of the Milestones:
(i) By December 31, 2014, Seller shall obtain Site Control.
(ii) By December 31, 2015, Seller shall receive a Conditional Use Permit and
enter into an Interconnection Agreement; and by December 1, 2015,
Seller shall obtain all additional Permits necessary, in final form, to
commence construction of the Plant.
(iii) By March 1, 2016, Seller shall arrange for the financing of the
construction of the Plant or otherwise make funds available to
commence and complete construction.
(iv) By April 1, 2016, Seller shall have commenced construction of the Plant.
(v) By December 31, 2016, Seller shall achieve Commercial Operation. Seller
agrees to attempt to achieve Commercial Operation earlier, by June 30, 2016; provided,
however, that Seller’s failure to achieve such early Commercial Operation shall in no
way change, relieve, justify or excuse Seller’s obligation to achieve Commercial
Operation by December 31, 2016.”
SECTION 8. Section 4.3(k) is hereby deleted in its entirety and replaced with the
following:
“(k) Seller may terminate this Agreement without liability of either Party to the other
by giving notice of termination to Buyer, in writing, in the event that, solely as a
result of that certain investigation by the United States International Trade
Commission entitled “Certain Crystalline Silicon Photovoltaic Products From
China and Taiwan,” Investigation Nos. 701‐TA‐511 and 731‐TA‐1246‐1247, any of
the commitments and contractual rights to receive all equity, debt, tax equity
and other financing described in Section 4.3(b)(iii) are not obtained by the date
specified in Section 4.3(b)(iii) for satisfaction of the relevant Milestone or cannot
be obtained in such form and from such parties as is satisfactory to Seller and as
Seller determines necessary to develop, construct, operate and maintain the
Plan over its useful life, or the conditions precedent to the effectiveness of any
and all such financings have not been satisfied or waived. In the event that
Seller exercises such termination right, and Seller or its affiliate(s) subsequently
AMENDMENT NO. 1 TO POWER PURCHASE AGREEMENT
BETWEEN THE CITY OF PALO ALTO AND
ELEVATION SOLAR C LLC
4
0180047 jrm 051114
enters into or seeks to enter into any other agreement to sell energy from a
generating facility at the Site, then Buyer shall have a right of first refusal to
purchase the Output of any electricity generating facility owned or controlled by
Seller or its affiliate(s) located at the Site. Such right of first refusal shall conform
to the provisions of Section 2.5. The provisions of this Section 4.3(j) shall survive
the termination of this Agreement under this Section 4.3(j) for a period of forty‐
two (42) months from such termination.”
SECTION 9. Section 10.3 is hereby amended to replace the contact information for
Elevation Solar C LLC within said section with the contact information listed below. The
remainder of section 10.3 shall otherwise remain in full force and effect.
“Elevation Solar C LLC
2749 E Parley’s Way
Suite 310
Salt Lake City, UT 84109
Attention: Hans Isern / Sean McBride
Email: notices@spower.com
Telephone: (415) 692‐7740”
SECTION 10. Exhibit A‐1 is hereby deleted in its entirety and replaced with Exhibit A‐1
attached hereto.
SECTION 11. Exhibit A‐2 is hereby deleted in its entirety and replaced with Exhibit A‐2
attached hereto.
SECTION 12. Exhibit E is hereby amended to replace the use of the term “Silverado”
with the defined term “Seller” in said Exhibit. The remainder of Exhibit E shall otherwise
remain in full force and effect.
SECTION 13. Exhibit G is hereby deleted in its entirety and replaced with Exhibit G
attached hereto.
SECTION 14. All capitalized terms used but not defined, or otherwise modified herein
shall have the meaning ascribed to such term in the Agreement.
SECTION 15. Except as modified by this First Amendment, all other provisions of the
Agreement, including any exhibits and subsequent amendments, shall remain in full force and
effect.
///
AMENDMENT NO. 1 TO POWER PURCHASE AGREEMENT
BETWEEN THE CITY OF PALO ALTO AND
ELEVATION SOLAR C LLC
5
0180047 jrm 051114
///
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives
executed this First Amendment on the Amendment Date first above written.
CITY OF PALO ALTO
APPROVED AS TO FORM:
__________________________
Senior Deputy City Attorney
APPROVED:
__________________________
Director of Utilities
____________________________
City Manager
ELEVATION SOLAR C LLC
By:____________________________
Name:_________________________
Title:___________________________
By:____________________________
Name:_________________________
Title:___________________________
AMENDMENT NO. 1 TO POWER PURCHASE AGREEMENT
BETWEEN THE CITY OF PALO ALTO AND
ELEVATION SOLAR C LLC
6
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EXHIBIT A‐1
PLANT SITE DESCRIPTION
Approximately 350 acres comprised of a combination of the proprieties listed below, located in
Northern Los Angeles County, in or near Lancaster, California and within a radius of
approximately five (5) miles of Southern California Edison’s Antelope Substation:
LOS ANGELES COUNTY APN LIST:
3203034025 3248005006 3248007002 3248012015 3267010034
3203034010 3248005013 3248007019 3248010026 3267010026
3203034026 3248005027 3248011008 3248003020 3267010033
3203021079 3248006032 3248011028 3248004010 3267010025
3203021044 3248005021 3248021012 3248022031 3267010032
3203021047 3248005005 3248010013 3248005001 3267007040
3203021063 3248005011 3248008031 3248010063 3267007032
3203021078 3248010001 3248008014 3248005033 3267009028
3203021050 3248003016 3248008006 3248010007 3267013025
3203021076 3248005018 3248006010 3248006029 3267010004
3203021075 3248006005 3248007024 3248010019 3267012007
3203021053 3248010018 3248003018 3248006015 3267009023
3203021067 3248004016 3248010014 3248004013 3267012011
3203021070 3248007006 3248011003 3248011006 3267009013
3203021080 3248004014 3248021805 3248008030 3267007005
3203021083 3248011005 3248006022 3248008025 3267009047
3203021045 3248008015 3248006026 3248021051 3267009038
3203021074 3248008022 3248006011 3248005014 3267009035
3203021077 3248022024 3248011012 3248008001 3267009033
3203021066 3248003015 3248008028 3248005026 3267013017
3203021069 3248022026 3248004019 3248006034 3267012006
3203021073 3248004018 3248007027 3248010016 3267012012
3203021046 3248012023 3248008018 3248004017 3267008038
AMENDMENT NO. 1 TO POWER PURCHASE AGREEMENT
BETWEEN THE CITY OF PALO ALTO AND
ELEVATION SOLAR C LLC
7
0180047 jrm 051114
3203021072 3248010011 3248008005 3248007032 3267010027
3203021051 3248006017 3248021034 3248007005 3248022032
3203021052 3248011013 3248012021 3248011004 3248022901
3203021081 3248007009 3248006014 3248008010 3248022011
3203021082 3248010022 3248010027 3248008021 3248022012
3203034008 3248010009 3248006019 3248008004 3248022029
3203034009 3248006035 3248006037 3267008025 3248021032
3203034004 3248007033 3248007015 3267008020 3248021001
3248010024 3248007004 3248007031 3267008021 3248008017
3248005012 3248011029 3248022028 3267009037 3248011027
3248003019 3248012020 3248004009 3267010008 3248004011
3248005004 3248010020 3248007018 3267010017 3248011035
3248005023 3248006012 3248021806 3267008007 3248010015
3248005015 3248011014 3248011031 3267008031 3248010012
3248003008 3248011009 3248007016 3267010005 3248007029
3248005002 3248022021 3248007007 3267010028 3248007023
3248005010 3248007022 3248007011 3267008030 3248006013
3248005008 3248022022 3248021015 3267008015 3248006038
3248005009 3248007003 3248006003 3267010012 3248006030
3248005003 3248007010 3248007001 3267008001 3248006033
3248005031 3248012027 3248007021 3267008027 3248006002
3248005020 3248007026 3248011022 3267008006 3248010023
3248012022 3248008016 3248008009 3267007031 3248005029
3248022025 3248008020 3248008023 3267009036 3248005007
3248010021 3248022005 3248006023 3267013016 3248010003
3248005019 3248005017 3248006020 3267010023 3248010005
3248006006 3248008019 3248011021 3267007037 3248010006
3248011020 3248008012 3248007034 3267008028 3248010061
3248007017 3248004015 3248004012 3267012003 3248010052
3248011023 3248008011 3248008027 3267010013 3248010053
AMENDMENT NO. 1 TO POWER PURCHASE AGREEMENT
BETWEEN THE CITY OF PALO ALTO AND
ELEVATION SOLAR C LLC
8
0180047 jrm 051114
3248011024 3248008013 3248021010 3267007004 3248010062
3248008008 3248012018 3248005030 3267009021 3248010047
3248005028 3248021035 3248005032 3267009029 3248010057
3248006025 3248021025 3248006027 3267013007 3248010059
3248006008 3248010025 3248010008 3267012004 3248010054
3248004008 3248008032 3248006036 3267009048 3248010048
3248006024 3248010004 3248006009 3267009017 3248010058
3248007008 3248006016 3248004007 3267009034 3248010060
3248005022 3248011030 3248007014 3267010036 3248010033
3248010056 3248010055 3203034005 3203021068 3267008002
3219017020 3219017020 3219017020 3219017020 3219017020
3265006001 3265006001 3265006001 3265006001 3265006001
3265007001 3265007001 3265007001 3265007001 3265007001
3265007024 3265007024 3265021002 3265021001 3265021003
3265021004 3265018002 3265019030 3219016030 3219016027
3219016031 3265007027 3265007023 3265007026 3265007025
3265005001 3265007008 3265007021 3265007007 3265007003
3265007002 3265006002
AMENDMENT NO. 1 TO POWER PURCHASE AGREEMENT
BETWEEN THE CITY OF PALO ALTO AND
ELEVATION SOLAR C LLC
9
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AMENDMENT NO. 1 TO POWER PURCHASE AGREEMENT
BETWEEN THE CITY OF PALO ALTO AND
ELEVATION SOLAR C LLC
10
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EXHIBIT A‐2
SITE DRAWINGS
Seller shall provide to Buyer preliminary Site Drawings specifically identifying the parcels listed
in Exhibit A‐1 that will be used to construct the Plant by October 1, 2014. In the event the
specific parcels identified by Seller in the preliminary Site Drawings are modified to include or
exclude an alternate property identified in Exhibit A‐1, Seller shall provide advance written
notice of such change to Buyer. In the event that the specific parcels identified by Seller in the
preliminary Site Drawings are modified to include or exclude an alternate property not
identified in Exhibit A‐1, the Buyer consent requirements set forth in the definition of Site
under this Agreement shall apply.
Seller shall provide to Buyer final Site Drawings prior to the Commercial Operation Date.
AMENDMENT NO. 1 TO POWER PURCHASE AGREEMENT
BETWEEN THE CITY OF PALO ALTO AND
ELEVATION SOLAR C LLC
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EXHIBIT G
EXPECTED ANNUAL NET ENERGY PRODUCTION
Contract Year Expected Annual Net Energy Production (in MWhs)
1 100,788
2 100,284
3 99,783
4 99,284
5 98,787
6 98,293
7 97,802
8 97,313
9 96,826
10 96,342
11 95,860
12 95,381
13 94,904
14 94,430
15 93,958
16 93,488
17 93,020
18 92,555
19 92,093
20 91,632
21 91,174
22 90,718
23 90,264
24 89,813
25 89,364
26 88,917
27 88,473
28 88,030
29 87,590
30 87,152
31 86,716
32 86,283
33 85,851
34 85,422
35 84,995
0180048 jrm 051114
AMENDMENT NO. 1 TO POWER PURCHASE AGREEMENT
BETWEEN THE CITY OF PALO ALTO AND
WESTERN ANTELOPE BLUE SKY RANCH B LLC
This Amendment No. 1 (the “First Amendment”) to the Power Purchase Agreement dated July
10, 2013 (the “Agreement”) is entered into as of ___________, 2014 (the “Amendment Date”),
by and between the CITY OF PALO ALTO, a California chartered municipal corporation of the
State of California (“CITY” or “BUYER”), and Western Antelope Blue Sky Ranch B LLC, a Delaware
Limited Liability Company, located at 2 Embarcadero Center, Suite 410, San Francisco, California
94111 (“SELLER”) (collectively, the “Parties”).
R E C I T A L S
1. The Agreement was entered into between the Parties for the sale of the Output
of Seller’s 20 MW(ac) photovoltaic solar electric generating facility to Buyer;
2. Under the Agreement, the Seller delivers Energy, but not Capacity Rights as part
of the Output delivered to Buyer;
3. Seller has developed an alternative interconnection position where it will be able
to interconnect the Plant and deliver Capacity Rights along with the Energy to Buyer;
4. Buyer desires and Seller has agreed to also make certain change to the
Agreement related to milestones, Seller obligations and termination rights; and
5. Buyer and Seller wish to amend the Agreement to account for Seller’s delivery of
Capacity Rights to Buyer, Buyer’s associated payment by Buyer for such delivery, and other
certain modifications to the Agreement related to milestones, Seller obligations and
termination rights.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions
of this First Amendment, the Parties agree:
SECTION 1. The following definitions are added to Article 1 in their proper
alphabetical order:
“Capacity Price: Has the meaning set forth in Section 2.3.”
“Capacity Rights: The rights, whether in existence as of the Effective Date or
arising hereafter during the Agreement Term, to capacity, resource adequacy,
associated attributes and/or reserves or any of the foregoing associated with the
electric generating capability of the Plant, including the right to resell such
rights.”
AMENDMENT NO. 1 TO POWER PURCHASE AGREEMENT
BETWEEN THE CITY OF PALO ALTO AND
WESTERN ANTELOPE BLUE SKY RANCH B LLC
2
0180048 jrm 051114
“Energy Price: Has the meaning set forth in Section 2.3.”
“Local Capacity Requirements: Has the meaning set forth in the CAISO Tariff”
“Monthly Invoiced Amounts: the total dollar amount billed by Seller to Buyer
each month which is the sum of: (i) the product of the Energy Price and the
metered Energy delivered in the prior calendar month (taking into account any
line losses to the Point of Interconnection); and, if applicable (ii) the product of
the Capacity Price and the metered Energy delivered in the prior calendar month
(taking into account any line losses to the Point of Interconnection).”
“Price: Has the meaning set forth in Section 2.3.”
SECTION 2. The definition of “Output” in Article I is hereby deleted in its entirety and
replaced with the following:
“Output: All Energy, Capacity Rights, Environmental Attributes; as well as any
ancillary services and any other reliability or power attributes associated with
the Initial Capacity and/or associated Energy.”
SECTION 3. Section 2.3 is hereby deleted in its entirety and replaced with the following:
“Section 2.3 Energy and Capacity Price.
(a) Price Defined. Price means the Energy Price and the Capacity Price as
defined in this Section.
(i) Energy Price. Subject to any performance‐related adjustments
under the provisions of Section 9.4, during the entire Term, Buyer
shall pay Seller Sixty‐Eight and 77/100 Dollars ($68.77) per MWh
of Energy (“Energy Price”) delivered or tendered to Buyer at the
Point of Interconnection, prorated for partial MWh.
(ii) Capacity Price. Subject to any performance‐related adjustments
under the provisions of Section 9.4, during the entire Term, Buyer
shall pay Seller an additional Five Dollars ($5.00) per MWh of
Energy as compensation for Capacity Rights (“Capacity Price”)
delivered or tendered to Buyer at the Point of Interconnection,
prorated for partial MWh. Buyer shall only be obligated to pay
the Capacity Price upon Seller’s obtaining a Full Capacity
Deliverability Status Finding from the CAISO and provision to
AMENDMENT NO. 1 TO POWER PURCHASE AGREEMENT
BETWEEN THE CITY OF PALO ALTO AND
WESTERN ANTELOPE BLUE SKY RANCH B LLC
3
0180048 jrm 051114
Buyer of a copy of such finding and such Capacity Price payment
obligation shall only continue so long as the Point of
Interconnection is in an area designated as a Local Capacity
Requirements area or equivalent by CAISO.
(b) Total Compensation. The Price shall be the total compensation owed by
Buyer for the Output delivered or tendered to Buyer during the Term.”
SECTION 4. Sections 3.1 is hereby amended to replace the use of the defined term
“Energy” with the defined term “Output” in said Section. The remainder of section 3.1 shall
otherwise remain in full force and effect.
SECTION 5. Section 3.2 is hereby deleted in its entirety and replaced with the
following:
“3.2 Billing
(a) All invoices. Seller shall provide to Buyer on or before the tenth (10th) day of
each month an invoice for the Monthly Invoiced Amounts, enclosing reasonably
appropriate supporting CAISO documentation and any corresponding attestation
that may be required pursuant to Section 2.2(d). Such invoice may be
transmitted by e‐mail to settlements@ncpa.com, or to any other e‐mail address
designated, in writing, by Buyer, with a copy to be delivered in the mail of the
United States Postal Service or other entity to the notice address designated
below. Should either Seller or Buyer determine at a later date, but in no event
later than two (2) years after the original invoice date, that the invoice amount
was incorrect, that Party shall promptly notify, in writing, the other Party of the
error. If the amount invoiced was lower than the amount that should have been
invoiced, then Buyer shall, upon receiving verification of the error and
supporting documentation from Seller, pay any undisputed portion of the
difference within thirty (30) days of receipt of verification. If the amount invoiced
was higher than the amount that should have been invoiced, then Seller shall,
upon receiving verification of the error and supporting documentation from
Buyer, pay any undisputed portion of the difference within thirty (30) days of
receipt of verification. Any such adjusted amount owing by Seller or Buyer shall
be subject to the interest rate as designated in Section 3.3, running from the
original due date of payment.
(b) Invoices for Capacity Rights. In addition to the requirements set forth in section
3.2(a), prior to first including the delivery of any Capacity Rights in an invoice to
Buyer, Seller shall provide to Buyer documentation reasonably acceptable to
AMENDMENT NO. 1 TO POWER PURCHASE AGREEMENT
BETWEEN THE CITY OF PALO ALTO AND
WESTERN ANTELOPE BLUE SKY RANCH B LLC
4
0180048 jrm 051114
Buyer evidencing that it qualifies to deliver said Capacity Rights. If at any time
during the Term Seller is notified by CAISO or the PTO that the Plant no longer
qualifies for the delivery of Capacity Rights, it shall promptly notify Buyer and
shall no longer include the delivery of Capacity Rights in the Monthly Invoiced
Amounts unless it can re‐qualify the Plant for said Capacity Rights.
SECTION 6. Sections 3.3 is hereby amended to replace the use of the defined term
“Energy” with the defined term “Output” in said Section. The remainder of section 3.3 shall
otherwise remain in full force and effect.
SECTION 7. Section 4.1(h) is hereby deleted in its entirety and replaced with the
following:
“(h) Negotiate and enter into an Interconnection Agreement with the Participating
TO to enable Seller to transmit Energy to the Point of Interconnection and into
the CAISO‐controlled grid. Seller shall be responsible for and pay all costs and
charges arising under the Interconnection Agreement in compliance with the
Interconnection Agreement and associated rules and requirements in place as of
the Commercial Operation Date. Seller shall obtain a Full Capacity Deliverability
Status Finding from the CAISO and provide to Buyer a copy of such finding as
soon as reasonably possible, which date is expected to be no later than COD.
Seller's interconnection, distribution and/or transmission arrangements shall
provide for Seller to obtain and maintain Full Capacity Deliverability Status
throughout the Term of the Agreement.”
SECTION 8. Section 4.3(b) is hereby deleted in its entirety and replaced with the
following:
“(b) The following events are all of the Milestones:
(i) By December 31, 2014, Seller shall obtain Site Control.
(ii) By December 31, 2015, Seller shall receive a Conditional Use Permit and
enter into an Interconnection Agreement; and by December 1, 2015,
Seller shall obtain all additional Permits necessary, in final form, to
commence construction of the Plant.
(iii) By March 1, 2016, Seller shall arrange for the financing of the
construction of the Plant or otherwise make funds available to
commence and complete construction.
AMENDMENT NO. 1 TO POWER PURCHASE AGREEMENT
BETWEEN THE CITY OF PALO ALTO AND
WESTERN ANTELOPE BLUE SKY RANCH B LLC
5
0180048 jrm 051114
(iv) By April 1, 2016 Seller shall have commenced construction of the Plant.
(v) By December 31, 2016, Seller shall achieve Commercial Operation. Seller
agrees to attempt to achieve Commercial Operation earlier, by June 30, 2016; provided,
however, that Seller’s failure to achieve such early Commercial Operation shall in no
way change, relieve, justify or excuse Seller’s obligation to achieve Commercial
Operation by December 31, 2016. .”
SECTION 9. Section 4.3(k) is hereby deleted in its entirety and replaced with the
following:
“(k) Seller may terminate this Agreement without liability of either Party to the other
by giving notice of termination to Buyer, in writing, in the event that, solely as a
result of that certain investigation by the United States International Trade
Commission entitled “Certain Crystalline Silicon Photovoltaic Products From
China and Taiwan,” Investigation Nos. 701‐TA‐511 and 731‐TA‐1246‐1247, any of
the commitments and contractual rights to receive all equity, debt, tax equity
and other financing described in Section 4.3(b)(iii) are not obtained by the date
specified in Section 4.3(b)(iii) for satisfaction of the relevant Milestone or cannot
be obtained in such form and from such parties as is satisfactory to Seller and as
Seller determines necessary to develop, construct, operate and maintain the
Plan over its useful life, or the conditions precedent to the effectiveness of any
and all such financings have not been satisfied or waived. In the event that
Seller exercises such termination right, and Seller or its affiliate(s) subsequently
enters into or seeks to enter into any other agreement to sell energy from a
generating facility at the Site, then Buyer shall have a right of first refusal to
purchase the Output of any electricity generating facility owned or controlled by
Seller or its affiliate(s) located at the Site. Such right of first refusal shall conform
to the provisions of Section 2.5. The provisions of this Section 4.3(j) shall survive
the termination of this Agreement under this Section 4.3(j) for a period of forty‐
two (42) months from such termination.”
SECTION 10. Section 10.3 is hereby amended to replace the contact information for
Elevation Solar C LLC within said section with the contact information listed below. The
remainder of section 10.3 shall otherwise remain in full force and effect.
Western Antelope Blue Sky B
2749 E Parley’s Way
Suite 310
Salt Lake City, UT 84109
Attention: Hans Isern / Sean McBride
AMENDMENT NO. 1 TO POWER PURCHASE AGREEMENT
BETWEEN THE CITY OF PALO ALTO AND
WESTERN ANTELOPE BLUE SKY RANCH B LLC
6
0180048 jrm 051114
Email: notices@spower.com
Telephone: (415) 692‐7740
SECTION 11. Exhibit E is hereby amended to replace the use of the term “Silverado”
with the defined term “Seller” in said Exhibit. The remainder of Exhibit E shall otherwise
remain in full force and effect.
SECTION 12. Exhibit G is hereby deleted in its entirety and replaced with Exhibit G
attached hereto.
SECTION 13. All capitalized terms used but not defined or otherwise modified herein
shall have the meaning ascribed to such term in the Agreement.
SECTION 14. Except as modified by this First Amendment, all other provisions of the
Agreement, including any exhibits and subsequent amendments, shall remain in full force and
effect.
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives
executed this First Amendment on the Amendment Date first above written.
CITY OF PALO ALTO
APPROVED AS TO FORM:
__________________________
Senior Deputy City Attorney
APPROVED:
__________________________
Director of Utilities
____________________________
City Manager
WESTERN ANTELOPE BLUE SKY RANCH B LLC
By:____________________________
Name:_________________________
Title:___________________________
By:____________________________
Name:_________________________
Title:___________________________
AMENDMENT NO. 1 TO POWER PURCHASE AGREEMENT
BETWEEN THE CITY OF PALO ALTO AND
WESTERN ANTELOPE BLUE SKY RANCH B LLC
7
0180048 jrm 051114
EXHIBIT G
EXPECTED ANNUAL NET ENERGY PRODUCTION
Contract Year Expected Annual Net Energy Production (in MWhs)
1 50,394
2 50,142
3 49,891
4 49,642
5 49,394
6 49,147
7 48,901
8 48,656
9 48,413
10 48,171
11 47,930
12 47,691
13 47,452
14 47,215
15 46,979
16 46,744
17 46,510
18 46,278
19 46,046
20 45,816
21 45,587
22 45,359
23 45,132
24 44,907
25 44,682
26 44,459
27 44,236
28 44,015
29 43,795
30 43,576
31 43,358
32 43,141
33 42,926
34 42,711
35 42,498
City of Palo Alto (ID # 4754)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 6/16/2014
City of Palo Alto Page 1
Summary Title: City Hall Remodel Contract
Title: Approval of a Construction Contract with D.L. Falk Construction, Inc. in
the Amount of $2,718,350, Approval of Amendment Number 2 to Contract
No. C12144101 with WMB Architects, Inc. in the Amount of $141,565 for a
Not-to-Exceed Amount of $426,256 for the City Hall Remodel Project PE-
12017, and Adoption of a Budget Amendment Ordinance for Fiscal Year 2014
to Provide an Additional Appropriation in the Amount of $1,607,109
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 D.L. Falk Construction, Inc.in the amount of
$2,718,350 (Attachment A) for the City Hall Remodel Capital Improvement
Program Project PE-12017;
2.Authorize the City Manager or his designee to negotiate and execute one or
more change orders to the contract with D.L. Falk Construction, Inc.for
related, additional but unforeseen work which may develop during the
project, the total value of which shall not exceed a ten percent contingency
of $271,835;
3.Approve and authorize the City Manager or his designee to execute the
attached amendment to Contract C12144101 with WMB Architects, Inc.
(Attachment B) in the amount of $141,565 for construction administration
services for the City Hall Remodel Project (Capital Improvement Program
Project PE-12017), adding $128,695 to basic services and adding $12,870
City of Palo Alto Page 2
for additional services for a total contract amount not-to-exceed $426,256;
and
4.Approve the attached Budget Amendment Ordinance (BAO) in the amount
of $1,607,109 (Attachment C) for construction to selected areas on the first
floor, mezzanine, and second floor of City Hall.
Background
Palo Alto City Hall opened 44 years ago in 1970. Although the building has
recently undergone a thorough mechanical, electrical, and exterior refurbishment
under the Civic Center Infrastructure Upgrade Project (PF-01002), some of the
interior areas remain functionally inadequate and aesthetically dated.
Specifically, there are several public meeting and gathering areas that hinder
effective interaction between the community and city staff and Council due to
small seating capability and technical limitations. In particular, the Council
Conference Room has a limited seating capacity, has outdated architectural
treatments and furnishings, and lacks modern amenities such as flexible seating,
efficient lighting,and technological resources for audio-visual presentations.
Staff has identified the need for additional building elements similar to the
Council Conference Room for the first floor of City Hall, and included them in the
scope of this comprehensive project. These include a more welcoming and
accommodating lobby area; a new community conference room with a capacity
to seat 55 to better serve larger Council Committee and Commission meetings,
and several areas for efficient use of space for enhanced customer services for
residents.
Additionally, the elevator cabs have worn-out wall and floor finishes, harsh
lighting, and inadequate building information and directional signage. There is
also a significant need to improve the signage and other wayfinding information
at the various building entrances and on the first floor of City Hall in order to
assist members of the public with finding the staff members and services that can
meet their needs.
During the project design, the goal of the first floor renovation was broadened in
scope to achieve a more open atmosphere to encourage public participation and
community access to City Hall. The final plan also includes moving the Utilities
City of Palo Alto Page 3
Department’s customer service counter from the second floor to the lobby area
to be located near the Revenue Collections customer service counter.The People
Strategy & Operations conference room behind the Council Chambers would then
become a new,larger conference room that could also be used for Council and
staff sessions and the current (very inadequate) Council Conference Room would
be transformed into a staff training and multi-use room.
To relocate People Strategy & Operations (PSO)out of the lobby level, a number
of other staff reconfigurations and relocations are necessary. PSO would be
consolidated on the mezzanine level by relocating the Information Technology (IT)
Department staff currently using the space. The IT Department will be
consolidated on the second floor using more densely configured desks in an open
floor plan similar to what many high tech firms use. They will also expand into the
portion of the second floor vacated by the Utilities Department’s customer
service counter staff that will move to the first floor.
The plan accomplishes the goal of consolidating customer service functions on the
first floor and providing improved public spaces to promote public involvement.
In addition, PSO and IT staff are currently split between different floors.
Following construction,they will each be located together on their respective
floors, improving employee interaction and increasing efficiency.
Additional aspects of the project include reconfiguration of the existing restrooms
serving the Council to conform to Americans with Disabilities Act (ADA)
accessibility requirements. The kitchenette serving evening Council meetings will
also be relocated. Since the project will include extensive carpeting on much of
the first floor, mezzanine and second floor, staff combined the new carpeting and
the reupholstery of the seating for the Council Chambers. Council Chamber
carpeting is funded through CIP PF-11001.
Open government and technology are the key principles for this project. The new
community conference room and renovated public spaces have been designed for
better interaction and public engagement. The rooms will be equipped with
broadcast media capabilities, including multiple LCD screens, High Definition
cameras, and wall-mounted speakers. Flexibility is also a key theme of the design.
The rooms will allow multiple table and chair configurations. Most importantly,
for very large events, the proposed glass partition separating the lobby from the
City of Palo Alto Page 4
new community conference room can be opened and folded away to allow even
greater space flexibility.
The project will also coordinate with a new interactive digital media public art
element to be installed on the main lobby wall facing the main building entry
doors. An open call to new media artists was recently conducted by the
Community Services Department (CSD). Their call for artists resulted in 104
responses that were narrowed to 29 by a selection panel that included staff and
Public Art Commissioners. Further selection panels brought the field down to 5,
then to 3, and now a final artist selection is nearly complete. CSD will bring the
artist’s contract and full details of the proposed digital art piece for Council
approval in late summer. A portion of the funding for the artist is included in the
attached Budget Amendment Ordinance.
Wayfinding and building signage aspects of the overall project are also still in final
design stages. Exterior signage is expected to be reviewed by the Architectural
Review Board (ARB) this summer. Following ARB approval, an invitation for bids
(IFB) will be issued to procure the services of a specialty signage fabrication and
installation contractor.
Discussion
Scope Overview
The scope of work for the attached construction contract includes:
1)Main Lobby remodel including coordination with an interactive digital
media public art element;
2)Enhance the lobby area heating, ventilation, and air conditioning (HVAC)
system in order to handle the increased loads from the new community
meeting room and the new digital art installation;
3)Restore the terrazzo floor of the main lobby;
4)Convert existing PSO conference room into a new Council Conference
Room;
5)Convert existing Council Conference Room into a new Training and Multi-
purpose Meeting Room for staff and the public;
6)Create a new Community Meeting Room beside the Main Lobby;
7)Install broadcast media capabilities for all the new lobby-level meeting
spaces, including multiple LCD screens, High Definition cameras, and wall-
mounted speakers;
City of Palo Alto Page 5
8)Modify the lobby payment counter to match the new architectural style of
the lobby and provide a lower ledge for writing checks and signing forms;
9)Convert the Revenue Services offices into new Utilities Customer Service
counter and offices;
10)Reconfigure and renovate mezzanine level offices (PSO and Purchasing);
11)Reconfigure and renovate second floor offices (IT and Utilities);
12)New carpeting and new bench upholstery for Council Chambers; and
13)Remodel the three (3)building elevator cabs.
The building will remain occupied during the course of the project. Work will be
scheduled to keep systems operational during working hours and to minimize the
impacts of construction on staff and the public. There may be some temporary
relocation of department staff to accommodate construction. The entire PSO
Department will temporarily relocate to Cubberley Community Center Room H-5
for the duration of the project. This move will provide space in the building for
other temporary office relocations that are necessary for construction.
Bid Process
Notices inviting formal bids for the City Hall Remodel Project were posted at City
Hall and sent to 32 contractors on April 18, 2014. The bidding period was 19 days.
Bids were received from one qualified contractor on May 6, 2014.
Summary of Bid Process
Bid Name/Number City Hall Remodel Project –IFB 153838
Proposed Length of Project 225 calendar days
Number of Bid Packages
Mailed to Contractors
32
Number of Builder’s
Exchanges receiving Bid
Packages
0
Total Days to Respond to Bid 19
Pre-Bid Meeting April 23, 2014
Number of Company
Attendees at Pre-Bid Meeting
10 firms attended of which 5 were General
Contractors and 5 were Subcontractors
Number of Bids Received: 1
Base Bid Price Range $2,664,000
City of Palo Alto Page 6
*The submitted bid form from D.L. Falk is provided as Attachment D.
Staff reviewed the bid submitted and recommends that D.L. Falk Construction be
declared the lowest responsible bidder. Staff recommends that the City award
the Base Bid ($2,664,000) plus Add Alternates 1 through 6 ($54,350)for a total
contract award amount of $2,718,350.
The base bid is approximately 19% above the construction cost estimate for the
scope of work included. Staff believes that the busy local construction industry
has resulted in higher prices and the higher bid is still reasonable for the complex
nature of this project. Staff also inquired as to why other contractors did not
submit bids. Smaller firms indicated that bonds for projects over $1.5 million are
difficult to obtain. One firm that worked on City Hall previously indicated they no
longer bid on public projects. Another unionized firm indicated they did not think
they could prepare a competitive bid for a non-prevailing wage project. Others
said the project did not fit their schedule.
A contingency amount of $271,835 equal to 10 percent of the total contract is
requested for unforeseen conditions which may be discovered during
construction. With renovation of an existing facility, there is a high likelihood of
additional required repairs or system replacement triggered by the base
construction. In addition, due to the time constraints placed upon the contractors
to complete their work during off hours, the majority of change orders will be
billed at a premium rate for night or weekend work.
Staff confirmed with the Contractor’s State License Board that the contractor has
an active license on file. Staff checked references supplied by the contractor for
previous work performed and found that their projects were similar to this
project and were completed to the satisfaction of the owners.
WMB Contract –Construction Administration
The contract amendment with the design architect, WMB Architects
(Attachment B) will provide for the architect’s general construction administration
oversight during project work. As the designer of record, WMB Architects will
respond to design questions and issues raised by the contractor, attend meetings
at the job site,make construction observations, review material submittals, and
assist in the preparation of the record documents at the completion of
City of Palo Alto Page 7
construction. The contract also includes work related to wayfinding signage
design for the exterior and interior areas of the City Hall complex. The signage
fabrication and installation will be let as a separate invitation for bid (IFB) to be
awarded to a specialty contractor in late summer or early fall.
Timeline
The construction of the architectural upgrades to City Hall are to be completed in
four phases. The first phase encompases the majority of the work for the first
floor and the duration is anticipated to be ninety days. The subsequent three
remaining phases at forty-five days each will be used for work on the mezzanine
level and second floors. Note that some construction in the first floor lobby may
be delayed towards the end of the project to keep the current Council Conference
Room available for meetings during Phase 1 and to allow for construction to
include a new public art display on the large lobby wall near the main building
entrance.
Resource Impact
Funding for this project has been allocated in several capital projects, including:
City Hall First Floor Renovations (PE-12017), Facility Interior Finishes Replacement
(PF-02022), and Council Chambers Carpet (PF-11001). Remaining funding from
the Civic Center Infrastructure Upgrade project (PF-01002) will also be used for
the project. All of these projects are budgeted in the Capital Improvement Fund,
which receives the majority of its funding from the annual General Fund transfer.
As referenced earlier in the staff report, the bids for the project came in higher
than previously estimated as a result of the local construction environment, the
public art element, and changes in scope. In order to complete the project, a
Budget Amendment Ordinance (BAO) is required. The Budget Amendment
Ordinance recommended as part of this report would increase the City Hall First
Floor Renovations project by $1,607,109. This increase would allow for the
construction contract, contingency, design fees, wayfinding systems construction,
furniture, temporary office space, permit fees, architectural construction
administration, and a portion of the public art costs. Offsetting the increased
costs would be transfers from various funding sources, resulting in no reduction
to the Infrastructure Reserve. The transfers from other funding sources, which
will recover each fund’s respective fair share of the costs, will enable a return of
City of Palo Alto Page 8
funds to the Infrastructure Reserve upon completion of the project.
In determining the amounts and funding sources for the BAO, staff carefully
reviewed the bid and the work units benefitting from the work. A concerted
effort has been made to align the cost of the project to the benefitting
department/fund. For example, the cost of renovating the space to meet the
functional requirements of the Utilities Department will be charged to the Utility
Funds. Similarly, the cost of improving the Information Technology Department’s
space will be charged to the Technology Fund, while the cost of improving the
Administrative Services and People Strategies and Operations Departments will
be charged to the Capital Improvement Fund. Much of the work involves
improvements to common areas. The common area costs can be divided into two
categories: the first floor community room and improvements to the rest of the
facility that do not primarily benefit one exclusive department.
As part of the BAO, the cost of the new community room is recommended to be
charged to the Community Center Development Impact Fee Fund. The remaining
common areas are charged to the Capital Improvement Fund, with the City’s
various Enterprise Funds paying a share proportionate to their anticipated
utilization of space in City Hall. It should be noted that after accounting for the
transfers from the various Utility Funds, Technology Fund, and the Community
Center Development Impact Fee Fund, some portion of the funding in the Capital
Improvement Fund is expected to be returned to the Infrastructure Reserve. A
summary of the funding sources, as well as anticipated uses, is included in the
table on the following page.
Summary of Project Funding
Existing Funding Source (from Capital
Improvement Fund)
Amount allocated
City Hall First Floor Renovations (PE-12017)$2,183,733
Facility Interior Finishes Replacement (PF-02022)$380,000
Council Chambers Carpet (PF-11001)$80,000
Civic Center Infrastructure Upgrade (PF-01002)$61,643
Total Current Funding $2,705,376
City of Palo Alto Page 9
Funding Source (BAO)Amount allocated
Transfer from Community Center Development
Impact Fee Fund
$686,298
Transfer from Electric Fund $133,687
Transfer from Gas Fund $133,687
Transfer from Wastewater Collection Fund $133,687
Transfer from Water Fund $133,687
Transfer from Fiber Optics Fund $133,687
Transfer from Technology Fund $499,335
Total New Funding $1,854,068
Total Project Funding $4,559,444
Summary of Project Expenditures
Construction Contract $2,718,350
Contract Contingency (10%)$271,835
Design Fees $278,285
Architectural Construction Administration $141,565
Public Art $150,000
Furniture $300,000
Wayfinding Systems Construction $307,450
Other $145,000
Total Project Expenditures $4,312,485
Anticipated Return to Infrastructure Reserve $246,959
Policy Implications
This recommendation does not represent any change to existing City policies.
Environmental Review
This project is categorically exempt from California Environmental Quality Act
(CEQA) under Sections 15301 and 15302 of the CEQA guidelines as an alteration
to an existing facility and no further environmental review is necessary.
Attachments:
·A -D.L. Falk Construction Contract (PDF)
City of Palo Alto Page 10
·B -WMB Architects Contract Amendment No. 2 (PDF)
·C -BAO -City Hall Remodel (DOC)
·D -D.L. Falk Bid Form (PDF)
Invitation for Bid (IFB) Package 1 Rev. January 2014
CONSTRUCTION CONTRACT
CONSTRUCTION CONTRACT
Contract No. C14153838
City of Palo Alto
And
D.L. Falk Construction, Inc.
PROJECT
City Hall Remodel Project
Invitation for Bid (IFB) Package 2 Rev. January 2014
CONSTRUCTION CONTRACT
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
SECTION 4 CONTRACTOR’S DUTY. ...................................................................................................... 7
SECTION 5 PROJECT TEAM. ................................................................................................................. 7
6.1 Time Is of Essence. .............................................................................................................................. 7
6.2 Commencement of Work. ................................................................................................................ 7
6.3 Contract Time. ...................................................................................................................................... 7
6.4 Liquidated Damages. .......................................................................................................................... 8
6.4.1 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. ............................................................................................................................. 8
SECTION 8 STANDARD OF CARE. ........................................................................................................ 9
SECTION 9 INDEMNIFICATION. ........................................................................................................... 9
9.1 Hold Harmless. ..................................................................................................................................... 9
9.2 Survival. .................................................................................................................................................. 9
SECTION 10 NONDISCRIMINATION. ................................................................................................... 9
SECTION 11 INSURANCE AND BONDS. ............................................................................................... 9
SECTION 12 PROHIBITION AGAINST TRANSFERS............................................................................... 10
SECTION 13 NOTICES ……………………………………………………………………………………………………………………. 10
13.1 Method of Notice ………………………………………………………………………………………………………………10
13.2 Notice Recipents ……………………………………………………………………………………………………………….10
13.3 Change of Address. ........................................................................................................................... 11
SECTION 14 DEFAULT. ......................................................................................................................... 11
Invitation for Bid (IFB) Package 3 Rev. January 2014
CONSTRUCTION CONTRACT
14.1 Notice of Default. .............................................................................................................................. 11
14.2 Opportunity to Cure Default. ........................................................................................................ 11
SECTION 15 CITY'S RIGHTS AND REMEDIES. ...................................................................................... 12
15.1 Remedies Upon Default. ................................................................................................................. 12
15.1.1 Delete Certain Services. .......................................................................................... 12
15.1.2 Perform and Withhold. ........................................................................................... 12
15.1.3 Suspend The Construction Contract. .................................................................... 12
15.1.5 Invoke the Performance Bond. .............................................................................. 12
15.1.6 Additional Provisions. ............................................................................................. 12
15.2 Delays by Sureties. ............................................................................................................................ 12
15.3 Damages to City. ................................................................................................................................ 13
15.3.1 For Contractor's Default. ........................................................................................ 13
15.3.2 Compensation for Losses. ...................................................................................... 13
15.4 Suspension by City ............................................................................................................................ 13
15.4.1 Suspension for Convenience. .......................................................................................... 13
15.5 Termination Without Cause. ......................................................................................................... 14
15.5.1 Compensation. ......................................................................................................... 14
15.5.2 Subcontractors. ........................................................................................................ 14
15.6 Contractor’s Duties Upon Termination. ..................................................................................... 14
SECTION 16 CONTRACTOR'S RIGHTS AND REMEDIES. ...................................................................... 15
16.1 Contractor’s Remedies. ................................................................................................................... 15
16.1.1 For Work Stoppage. ................................................................................................. 15
16.1.2 For City's Non‐Payment. ......................................................................................... 15
16.2 Damages to Contractor. .................................................................................................................. 15
SECTION 17 ACCOUNTING RECORDS. ................................................................................................ 15
17.1 Financial Management and City Access. ................................................................................... 15
17.2 Compliance with City Requests. ................................................................................................... 16
SECTION 18 INDEPENDENT PARTIES. ................................................................................................. 16
SECTION 19 NUISANCE. ...................................................................................................................... 16
SECTION 20 PERMITS AND LICENSES. ................................................................................................ 16
SECTION 21 WAIVER. .......................................................................................................................... 16
SECTION 22 GOVERNING LAW AND VENUE. ...................................................................................... 16
Invitation for Bid (IFB) Package 4 Rev. January 2014
CONSTRUCTION CONTRACT
SECTION 23 COMPLETE AGREEMENT. ................................................................................................ 17
SECTION 24 SURVIVAL OF CONTRACT. ............................................................................................... 17
SECTION 25 PREVAILING WAGES. ...................................................................................................... 17
SECTION 26 NON APPROPRIATION. ................................................................................................... 17
SECTION 27 AUTHORITY. .................................................................................................................... 17
SECTION 28 COUNTERPARTS .............................................................................................................. 18
SECTION 29 SEVERABILITY. ................................................................................................................. 18
SECTION 30 STATUTORY AND REGULATORY REFERENCES . ............................................................. 18
SECTION 31 WORKERS’ COMPENSATION CERTIFICATION. ................................................................ 18
Invitation for Bid (IFB) Package 5 Rev. January 2014
CONSTRUCTION CONTRACT
CONSTRUCTION CONTRACT
THIS CONSTRUCTION CONTRACT entered into on June 5, 2014 (“Execution Date”) by and between the CITY
OF PALO ALTO, a California chartered municipal corporation ("City"), and D.L. Falk Construction, Inc.
("Contractor"), is made with reference to the following:
R E C I T A L S:
A. City is a municipal corporation duly organized and validly existing under the laws of the State of
California with the power to carry on its business as it is now being conducted under the statutes of the
State of California and the Charter of City.
B. Contractor is a California Corporation duly organized and in good standing in the State of
California, Contractor’s License Number 683837. 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 April 18, 2014, City issued an Invitation for Bids (IFB) to contractors for the City Hall Remodel
Project (“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 Contract 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 City Hall Remodel Project, located at 250 Hamilton Avenue, Palo Alto, CA. 94301
("Project").
Invitation for Bid (IFB) Package 6 Rev. January 2014
CONSTRUCTION CONTRACT
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 Orders
3) Contract
4) Bidding Addenda
5) Special Provisions
6) General Conditions
7) Project Plans and Drawings
8) Technical Specifications
9) Instructions to Bidders
10) Invitation for Bids
11) Contractor's Bid/Non‐Collusion Affidavit
12) Reports listed in the Contract Documents
13) Public Works Department’s Standard Drawings and Specifications (most current version at
time of Bid)
14) Utilities Department’s Water, Gas, Wastewater, Electric Utilities Standards (most current
version at time of Bid)
15) City of Palo Alto Traffic Control Requirements
16) City of Palo Alto Truck Route Map and Regulations
17) Notice Inviting Pre‐Qualification Statements, Pre‐Qualification Statement, and Pre‐
Qualification Checklist (if applicable)
18) Performance and Payment Bonds
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
Invitation for Bid (IFB) Package 7 Rev. January 2014
CONSTRUCTION CONTRACT
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 CONTRACTOR’S DUTY.
Contractor agrees to perform all of the Work required for the Project, as specified in the Contract
Documents, all of which are fully incorporated herein. Contractor shall provide, furnish, and supply all
things necessary and incidental for the timely performance and completion of the Work, including, but not
limited to, provision of all necessary labor, materials, equipment, transportation, and utilities, unless
otherwise specified in the Contract Documents. Contractor also agrees to use its best efforts to complete
the Work in a professional and expeditious manner and to meet or exceed the performance standards
required by the Contract Documents.
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 Contract
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 225 calendar days () after the commencement date specified in City’s Notice to
Proceed.
By executing this Construction Contract, Contractor expressly waives any claim for delayed early
completion.
Invitation for Bid (IFB) Package 8 Rev. January 2014
CONSTRUCTION CONTRACT
6.4 Liquidated Damages.
Pursuant to Government Code Section 53069.85, if Contractor fails to achieve Substantial
Completion of the entire Work within the Contract Time, including any approved extensions
thereto, City may assess liquidated damages on a daily basis for each day of Unexcused Delay in
achieving Substantial Completion, based on the amount of Five Hundred dollars ($500.00) per
day, or as otherwise specified in the Special Provisions. Liquidated damages may also be
separately assessed for failure to meet milestones specified elsewhere in the Contract
Documents, regardless of impact on the time for achieving Substantial Completion. The
assessment of liquidated damages 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. The City is entitled to
setoff the amount of liquidated damages assessed against any payments otherwise due to
Contractor, including, but not limited to, setoff against release of retention. If the total amount of
liquidated damages assessed exceeds the amount of unreleased retention, City is entitled to
recover the balance from Contractor or its sureties. Occupancy or use of the Project in whole or in
part prior to Substantial Completion, shall not operate as a waiver of City’s right to assess
liquidated damages.
6.4.1 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 memorialized
in a Change Order approved 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 seven hundred eighteen three hundred fifty
Dollars ($2,718,350).
[This amount includes the Base Bid of $2,664,000 and Additive Alternates 1 for
$7,800, Additive Alternate 2 for $13,400, Additive Alternate 3 for $5,050,
Additive Alternate 4 for $3,000, Additive Alternate 5 for $17,200, and Additive
Alternate 6 for $7,900.]
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, except as expressly provided herein. The Contract Sum may only be adjusted
for Change Orders approved in accordance with the requirements of the Contract Documents.
Invitation for Bid (IFB) Package 9 Rev. January 2014
CONSTRUCTION CONTRACT
SECTION 8 STANDARD OF CARE.
Contractor agrees that the Work shall be performed by qualified, experienced and well‐supervised
personnel. All services performed in connection with this Construction Contract shall be performed in a
manner consistent with the standard of care under California law applicable to those who specialize in
providing such services for projects of the type, scope and complexity of the Project.
SECTION 9 INDEMNIFICATION.
9.1 Hold Harmless.
To the fullest extent allowed by law, Contractor will defend, indemnify, and hold harmless City, its
City Council, boards and commissions, officers, agents, employees, representatives and volunteers
(hereinafter individually referred to as an “Indemnitee” and collectively referred to as
"Indemnitees"), through legal counsel acceptable to City, from and against any and liability, loss,
damage, claims, expenses (including, without limitation, attorney fees, expert witness fees,
paralegal fees, and fees and costs of litigation or arbitration) (collectively, “Liability”) of every
nature arising out of or in connection with the acts or omissions of Contractor, its employees,
Subcontractors, representatives, or agents, in performing the Work or its failure to comply with
any of its obligations under the Contract, except such Liability caused by the active negligence,
sole negligence, or willful misconduct of an Indemnitee. Contractor shall pay City for any costs
City incurs to enforce this provision. Except as provided in Section 9.2 below, 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.
Pursuant to Public Contract Code Section 9201, City shall timely notify Contractor upon receipt of
any third‐party claim relating to the Contract.
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.
Within ten (10) business days following issuance of the Notice of Award, Contractor shall provide City with
evidence that it has obtained insurance and shall submit Performance and Payment Bonds satisfying all
requirements in Article 11 of the General Conditions.
Invitation for Bid (IFB) Package 10 Rev. January 2014
CONSTRUCTION CONTRACT
SECTION 12 PROHIBITION AGAINST TRANSFERS.
City is entering into this Construction Contract in reliance 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, and shall be deemed a substantial breach of contract
and grounds for default in addition to any other legal or equitable remedy available to the City.
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, Change Order Requests and
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: Matt Raschke
AND
[Include Construction Manager, If Applicable.]
City of Palo Alto
Utilities Engineering
250 Hamilton Avenue
Invitation for Bid (IFB) Package 11 Rev. January 2014
CONSTRUCTION CONTRACT
Palo Alto, CA 94301
Attn:
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:
D.L. Falk Construction, Inc.
3526 Investment Blvd.
Hayward, CA 94545
Attn: David L. Falk
13.3 Change of Address.
In advance of any change of address, Contractor shall notify City 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 DEFAULT.
14.1 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, with a copy to
Contractor’s performance bond surety.
14.2 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.
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CONSTRUCTION CONTRACT
SECTION 15 CITY'S RIGHTS AND REMEDIES.
15.1 Remedies Upon Default.
If Contractor fails to cure any default of this Construction Contract within the time period set forth
above in Section 14, then City may pursue any remedies available under law or equity, including,
without limitation, the following:
15.1.1 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.
15.1.2 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.
15.1.3 Suspend The Construction Contract.
City may, without terminating the Construction Contract and reserving to itself all rights to Losses
related thereto, suspend all or any portion of this Construction Contract for as long a period of
time as City determines, in its sole discretion, appropriate, in which event City shall have no
obligation to adjust the Contract Sum or Contract Time, and shall have no liability to Contractor
for damages if City directs Contractor to resume Work.
15.1.4 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 14. 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.
15.1.5 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.
15.1.6 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.
15.2 Delays by Sureties.
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CONSTRUCTION CONTRACT
Time being of the essence in the performance of the Work, if Contractor’s surety fails to arrange
for completion of the Work in accordance with the Performance Bond, within seven (7) calendar
days from the date of the notice of termination, Contractor’s surety shall be deemed to have
waived its right to complete the Work under the Contract, and City may immediately make
arrangements for the completion of the Work through use of its own forces, by hiring a
replacement contractor, or by any other means that City determines advisable under the
circumstances. Contractor and its surety shall be jointly and severally liable for any additional cost
incurred by City to complete the Work following termination. In addition, City shall have the right
to use any materials, supplies, and equipment belonging to Contractor and located at the
Worksite for the purposes of completing the remaining Work.
15.3 Damages to City.
15.3.1 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.
15.3.2 Compensation for Losses.
In the event that City's Losses arise from Contractor’s default under the Contract Documents, City
shall be entitled to deduct the cost of such Losses from monies otherwise payable to Contractor.
If the Losses incurred by City exceed the amount payable, Contractor shall be liable to City for the
difference and shall promptly remit same to City.
15.4 Suspension by City
15.4.1 Suspension 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.
15.4.2 Suspension for Cause.
In addition to all other remedies available to City, if Contractor fails to perform or correct work in
accordance with the Contract Documents, City may immediately order the Work, or any portion
thereof, suspended until the cause for the suspension has been eliminated to City’s satisfaction.
Contractor shall not be entitled to an increase in Contract Time or Contract Price for a suspension
occasioned by Contractor’s failure to comply with the Contract Documents. City’s right to
suspend the Work shall not give rise to a duty to suspend the Work, and City’s failure to suspend
the Work shall not constitute a defense to Contractor’s failure to comply with the requirements of
the Contract Documents.
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CONSTRUCTION CONTRACT
15.5 Termination Without Cause.
City may, at its sole discretion and without cause, terminate this Construction Contract in part or
in whole upon written notice to Contractor. Upon receipt of such notice, Contractor shall, at City’s
expense, comply with the notice and take all reasonable steps to minimize costs to close out and
demobilize. The compensation allowed under this Paragraph 15.5 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. Termination pursuant to this provision does not relieve
Contractor or its sureties from any of their obligations for Losses arising from or related to the
Work performed by Contractor.
15.5.1 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 15.5.1, 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:
(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.
.4 Profit Allowance. An allowance for profit calculated as four percent (4%) of the sum of
the above items, provided Contractor can prove a likelihood that it would have made a profit if
the Construction Contract had not been terminated.
15.5.2 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.
15.6 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
Invitation for Bid (IFB) Package 15 Rev. January 2014
CONSTRUCTION CONTRACT
the subcontract, purchase order or contract and any written changes, amendments or
modifications thereto, together with such other information as City may determine
necessary in order to decide whether to accept assignment of or request Contractor to
terminate the subcontract, purchase order or contract;
(iv) Promptly assign to City those subcontracts, purchase orders or contracts, or portions
thereof, that City elects to accept by assignment and cancel, on the most favorable terms
reasonably possible, all subcontracts, purchase orders or contracts, or portions thereof,
that City does not elect to accept by assignment; and
(v) Thereafter do only such Work as may be necessary to preserve and protect Work already
in progress and to protect materials, plants, and equipment on the Project Site or in
transit thereto.
Upon termination, whether for cause or for convenience, the provisions of the Contract
Documents remain in effect as to any Claim, indemnity obligation, warranties, guarantees,
submittals of as‐built drawings, instructions, or manuals, or other such rights and obligations
arising prior to the termination date.
SECTION 16 CONTRACTOR'S RIGHTS AND REMEDIES.
16.1 Contractor’s Remedies.
Contractor may terminate this Construction Contract only upon the occurrence of one of the
following:
16.1.1 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.
16.1.2 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.
16.2 Damages to Contractor.
In the event of termination for cause by Contractor, City shall pay Contractor the sums provided
for in Paragraph 15.5.1 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 17 ACCOUNTING RECORDS.
17.1 Financial Management and City Access.
Contractor shall keep full and detailed accounts and exercise such controls as may be necessary
for proper financial management under this Construction Contract in accordance with generally
accepted accounting principles and practices. City and City's accountants during normal business
hours, may inspect, audit and copy Contractor's records, books, estimates, take‐offs, cost reports,
ledgers, schedules, correspondence, instructions, drawings, receipts, subcontracts, purchase
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CONSTRUCTION CONTRACT
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.
17.2 Compliance with City Requests.
Contractor's compliance with any request by City pursuant to this Section 17 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 17.1 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 18 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 19 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 20 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 21 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 22 GOVERNING LAW AND VENUE.
This Construction Contract shall be construed in accordance with and governed by the laws of the State of
California, and venue shall be in a court of competent jurisdiction in the County of Santa Clara, and no
other place.
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CONSTRUCTION CONTRACT
SECTION 23 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 24 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 25 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. This Project remains subject to all
other applicable provisions of the California Labor Code and regulations promulgated thereunder.
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 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 26 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 27 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.
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CONSTRUCTION CONTRACT
SECTION 28 COUNTERPARTS
This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties,
constitute a single binding agreement.
SECTION 29 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.
SECTION 30 STATUTORY AND REGULATORY REFERENCES.
With respect to any amendments to any statutes or regulations referenced in these Contract Documents,
the reference is deemed to be the version in effect on the date that the Contract was awarded by City,
unless otherwise required by law.
SECTION 31 WORKERS’ COMPENSATION CERTIFICATION.
Pursuant to Labor Code Section 1861, by signing this Contract, Contractor certifies as follows: “I am aware
of the provisions of Section 3700 of the Labor Code which require every employer to be insured against
liability for workers’ compensation or to undertake self‐insurance in accordance with the provisions of that
code, and I will comply with such provisions before commencing the performance of the Work on this
Contract.”
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
D. L. Falk Construction, Inc.
By:___________________________
Name:__David L. Falk____________
Title:____President _____________
Date: _________________________
AMENDMENT NO.2 TO CONTRACT NO. C12144101
BETWEEN THE CITY OF PALO ALTO AND
WMB ARCHITECTS, INC.
This Amendment No.2 ("Amendment") to Contract No. C12144101 ("Contract") is
entered into and made effective on June _,2014, by and between the CITY OF PALO ALTO, a
California chartered municipal corporation ("CITY"), and WMB Architects, Inc., a California
Corporation, located at 5757 Pacific Avenue, Suite 226, Stockton, CA 95207, ("CONSULTANT").
RECIT ALS
WHEREAS, the Contract was entered into between the parties for the provision of
professional design services relating to the City Hall Remodel Project ("Project"); and
WHEREAS, on September 16, 2013, the parties amended the Contract to add
$105,974 of compensation for a total Contract amount not to exceed $284,691; and
WHEREAS, the parties seek by this Amendment No.2 to increase the scope of
services, schedule of performance, and compensation;
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and
provisions of this Amendment, the parties agree:
SECTION 1. Section A of RECITALS is hereby amended to read as follows:
"A. CITY intends to implement the City Hall Renovation Project ("Project") and
desires to engage a consultant to provide professional architectural design services
and construction administration services for architectural upgrades in connection
with the Project ("Services")."
SECTION 2. Section 4 of the Contract, NOT TO EXCEED COMPENSATION,
Paragraph 1, is hereby amended to read as follows:
"The compensation to be paid to CONSULT ANT for performance of the Services
described in Exhibit "A", including both payment for professional services and
reimbursable expenses, shall not exceed Three Hundred Eighty-Seven Thousand
Five Hundred Five Dollars [$387,505.00]. In the event Additional Services are
authorized, the total compensation for services and reimbursable expenses shall not
exceed Four Hundred Twenty-Six Thousand Two Hundred Fifty·Six Dollars
[$426,256.00]. The applicable rates and schedule of payment are set out in Exhibit
"C-2", entitled "CONSTRUCTION ADMINISTRATION FEE SCHEDULE", which
is attached to and make a part of this Agreement."
1 Revision April 28, 2014
SECTION 4. The following exhibit(s) to the Contract is/are hereby amended to read
as set forth in the attachment(s) to this Amendment, which are incorporated in full by this reference:
a. Exhibit "A" entitled "Scope of Work".
b. Exhibit "B" entitled "Schedule".
c. Exhibit "C" entitled "Compensation".
SECTION 5. Except as herein modified, all other provisions of the Contract,
including any exhibits and subsequent amendments thereto, shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have by their duly authorized representatives
executed this Amendment on the date first above written.
CITY OF PALO ALTO WMB Architects, Inc.
City Manager ::!!:~
APPROVED AS TO FORM:
Title: nZW/ectOr
Senior Asst. City Attorney
Attachments:
EXHIBIT "A":
EXHIBIT "B":
EXHIBIT "C":
SCOPE OF PROJECT
TIME SCHEDULE
COMPENSATION SCHEDULE
2 Revision Apli12S, 2014
EXHIBIT “A” - SCOPE OF WORK
CONTRACT C12144101 - AMENDMENT No. 2
CIP PROJECT PE-12017
Task 1: City Hall Lobby Design Modifications
The Lobby is intended to serve as a space that welcomes members of the public to the building and
helps direct them to their destination within City Hall. The Lobby should also be modified to better
accommodate the display of public art and to create opportunities for small, informal gatherings of
staff and the public.
A) Transform the Lobby into an attractive and welcoming space to display public art and facilitate
gatherings and events.
B) Remove the current furniture and cabinets.
C) Refinish walls and design an improved display mounting system to create a more attractive,
functional, and safe environment for the display of artwork.
D) Establish lighting conducive to displaying art, both on walls and freestanding that allows for
safe, easy, and efficient bulb replacement.
E) Establish signage and an electronic information kiosk to provide wayfinding information to
the public.
F) Create paths for foot traffic through the lobby which create protected spaces conducive to
small gatherings.
G) Design and select furniture and carpets which create space for gatherings & meetings.
H) Consider changes to ceiling fixtures to modernize the lobby’s appearance.
Task 2: City Hall Council Conference Room Design Modifications
The Council Conference Room is intended to serve as a less formal, more intimate meeting space for
the Finance Committee and Policy & Services Committee of the City Council, various advisory
Boards and Commissions, public gatherings, and to host larger staff meetings.
A) Transform the Council Conference Room into a more modern and usable space which will
more readily accommodate the multitude of departments and Committees, Boards, and
Commissions that utilize the area.
B) Explore opportunities to enlarge the existing area via the removal of the existing east wall and
incorporation of the adjoining corridor into a larger and more usable meeting space.
A structural analysis for this portion of the design will be required.
C) Provide room layout and seating arrangements that will improve the interface between
Contract C12144101 Amendment No. 2 Page 3
Committee/Board/Commission members and audience members during public meetings.
D) Provide flexible room layout and seating arrangements to accommodate a larger number of
occupants during public meetings, public multi-media presentations, and staff meetings.
E) Design a more modern method for effective presentation delivery to accommodate conferences and
public presentations via electronic media. Seating arrangements will be critical to allow for easy
viewing of the material presented by both board/commission members as well as audience members.
F) Modernize the area utilizing newly-designed lighting, wall coverings, flooring, and furniture.
Task 3: City Hall Human Resources Conference Room Design
Modifications
The Human Resources Conference Room serves as one of the larger staff meeting rooms in City Hall
and is used by the City Council for private discussion during closed sessions.
A) Transform the Human Resources Conference Room into a more modern and usable space which
will more readily accommodate the multitude of departments that utilize the area.
B) Design a more modern method for effective presentation delivery to accommodate conferences and
small department presentations via electronic media.
C) Modernize the area utilizing newly-designed lighting, wall coverings, flooring, and furniture.
Task 4: City Hall Wayfinding Design Modifications
Existing directional signage in City Hall is sparse and inadequate. The proposed wayfinding
modifications should provide a simple, attractive, uniform, intuitive system of signage and other
directional elements to assist members of the public to locate the service provider within City Hall that
can address their needs and to find their vehicle upon returning to the garage.
A) Integrate the signage and an electronic information kiosk from Task 1 into a programmatic and
unified City Hall signage program that will readily direct members of the public to service locations
throughout the various departments on all levels of City Hall (including the Police Wing);
including paths of travel from the exterior of the building.
B) Improve signage on the building exterior to direct members of the public to the Police Department
offices on Forest Avenue. Coordinate the new signage with the signage on the Downtown Library
across the street.
C) Provide an easy means of identifying parking locations in the underground City Hall Garage which
will readily assist customers in relocating their vehicle.
D) Incorporate signage to direct customers from the parking garage to the location of an information
kiosk on the First Floor.
E) Provide signage and terminology that assists the customer to readily locate the service provider
Contract C12144101 Amendment No. 2 Page 4
within City Hall that can address their needs. Integrate service descriptions with department names
into unified naming conventions.
F) Coordinate the design of informational signage in the elevator lobbies with ongoing efforts by the
City Manager’s Office to integrate photographs evocative of the services provided on each floor of the
building with the accompanying signage.
Task 5: City Hall Way Elevator Cabs Refurbishment
A) Upgrade and modernize interior cab panels, including all sides, doors, flooring, and ceiling.
B) Provide a more energy-efficient lighting system that will provide softer, more diffused
illumination.
C) Modernize the signage direction/display systems. Integrate same with Task 4, Wayfinding.
D) Enhance the appearance of exterior door panels. Possibilities include integration with Task 4,
Wayfinding, as well as including artistic concepts that correlate with department themes associated
with that individual floor level.
B. SCOPE OF SERVICES
1. Study Phase
City Hall is an occupied building and will remain so during the entire design process and through the
completion of construction. The Consultant will be responsible for surveying all the various
departments and end-users that will be utilizing the areas of refurbishment to effectively address their
desired needs and concerns. The study shall identify strategies and alternatives that will provide
maximum benefit to endusers and optimize the functionality and usefulness of the work spaces. The
analysis and resulting recommendation shall take into account both feasibility and economics. The
Consultant shall work with the City’s Project Manager to develop the survey strategy, identify the
existing conditions and needs, and develop recommended modifications to meet the critical needs.
Consultant shall identify implementation methodologies for the renovation to assist in accommodating
existing occupants. Relocation alternatives, rebuilding on a “fast-track” basis, and other alternatives
proposed by Consultant shall be considered during this phase to accomplish the work with the least
cost and/or minimum disruption to the occupants. Consultant shall present the study with alternates
and recommendations to the Project Manager and appropriate departmental managers in the affected
work areas for review and comment. Once a decision on approach, alternates, and recommendations
is made by the City, the next phase of the project shall commence.
2. Conceptual Design
Consultant’s second phase shall be to prepare a preliminary design with estimated construction costs
for the City’s review. Consultant shall evaluate all parameters and observations in preparing a
conceptual design to accomplish the City’s objectives as outlined in the four tasks described above. A
proposed methodology for completing the renovations during time periods of least impact to the
functions of the departments will be proposed; along with refining the full scope of the project.
Consultant shall provide conceptual (30%) drawings for review and approval and shall attend
Contract C12144101 Amendment No. 2 Page 5
meetings with City staff to describe and discuss the elements of the conceptual design. Consultant
shall provide a preliminary engineer’s estimate of the construction contract cost for City review at the
30% design stage to aid the City in determining the final scope of work.
3. Construction Documents
In the third phase, Consultant shall prepare the construction documents, including plans, technical
specifications, an engineer’s estimate, and a preliminary construction schedule which minimizes
disruptions to building occupants. Consultant shall prepare the final construction documents for all
components defined in the Conceptual Design. Plans and specifications shall be presented to the City
at 60% and 90% completion for review and comment. An engineer’s estimate shall be prepared at the
90% design stage. Consultant shall assist the City in obtaining all building permits, and other permits
as applicable, required for implementation of the work.
4. Bid and Construction Phase
The Consultant shall provide assistance to City staff (e.g. pre-bid meeting with prospective bidders,
issuance of addenda, etc.) during the bidding phase of the project. Upon award of a construction
contract to a general contractor, the City will negotiate with the Consultant an appropriate scope of
work for construction phase services to be provided (e.g. assistance with Requests for Information,
review of contractor submittals, review of change order requests, periodic site inspections, preparation
of record drawings, etc.). Construction phase services will be added to the Consultant’s contract at the
City’s discretion via a contract amendment.
C. PROJECT ELEMENTS
Preparation Work
• City will provide any available existing plans for the City Hall work spaces to be modified during
this project.
• Consultant will meet with City representatives to develop a schedule for the work. Some tasks will
hold a higher priority and may need to be fast tracked in comparison to some of the other tasks.
Site Assessment
• Consultant will conduct site visits.
• Consultant will review and evaluate all available information and determine procedure for acquiring
any necessary additional information. Equipment Evaluation
• Consultant will evaluate existing lighting for anticipated needs.
• Consultant will suggest possible audio/visual equipment to satisfy requirements. Economic Analysis
and Feasibility
• Consultant will recommend equipment based on functionality and cost.
Contract C12144101 Amendment No. 2 Page 6
WORK PLAN
ARCHITECTURAL AND ENGINEERING TASK LIST
TASK 1: INVESTIGATION PHASE
Subtask 1.1 On-site review of existing building documents.
Subtask 1.2 On-site verification and measurement of lobby, elevator lobbies and conference rooms,
mezzanine and second floor.
Subtask 1.3 On-site photographing of existing building areas.
Subtask 1.4 CADD input of base floor plans, reflected ceiling plans and interior elevations.
Subtask 1.5 CADD input of parking levels and site plan for wayfinding.
TASK 2: NEEDS ASSESSMENT PHASE
Subtask 2.1 Prepare program survey forms
Subtask 2.2 On-site meetings with departmental end-user groups to establish needs for conference
spaces and lobby areas
Subtask 2.3 On-site meetings with departmental end-user groups to establish needs for wayfinding.
Subtask 2.4 Summarize in written and graphic format the needs assessment information.
Subtask 2.5 Meet with Project Manager, Project Engineer to review needs assessment data.
Subtask 2.6 Working with Project Manager and Project Engineer, refine needs assessment and set
priorities.
Subtask 2.7 Prepare final Needs Assessment document that will serve as the basis for the design
Subtask 2.8 Meet with design team to review completed needs assessment document.
TASK 3: CONCEPT DESIGN DEVELOMENT PHASE
Subtask 3.1 Utilizing the approved Final Needs Assessment, design team will develop concept design
solutions that meet the criteria set forth in the Final Needs Assessment. Design concepts
to be illustrated by floor plan(s), reflected ceiling plans, 3 dimensional sketches, interior
finish materials samples, AV concepts and modifications to building electrical and
mechanical systems
Subtask 3.2 Develop concept budget estimates for design options.
Subtask 3.3 Meet with City’s Project Manager to review concept design/cost estimates.
Subtask 3.4 Prepare base floor plans, reflected ceiling plans and interior elevations of existing
conditions.
Subtask 3.5 Per Project Managers Direction, Present concept design to City Staff for review and
input.
Subtask 3.6 Refine concept design documentation and budget estimate incorporating City input.
Subtask 3.7 Prepare Concept Design package (30%) for City review and approval.
TASK 4: CONSTRUCTION DOCUMENTS PHASE
Subtask 4.1 Based on approved concept design and budget, develop construction documents
(including plans, specifications, calculations and budget estimate) for plan review,
permitting and bidding. Prepare City review packages at 60% and 90%.
Subtask 4.2 60% document review meeting with Project Manager and Project Engineer.
Subtask 4.3 90% document review meeting with Project Manager and Project Engineer.
Subtask 4.4 In-house peer review of documents.
Contract C12144101 Amendment No. 2 Page 7
Subtask 4.5 Prepare 100% construction document submittal package.
Subtask 4.6 Review meeting with Project Manager and Project Engineer of final construction
document package.
TASK 5: PLAN REVIEW | PERMITTING PHASE
Subtask 5.1 Assist City in submittal of construction documents package for plan review for building
permit.
Subtask 5.2 Make revisions to construction documents to address plan review comments.
Subtask 5.3 Assist City in re-submittal of construction documents package incorporating plan review
comments.
TASK 6: BIDDING PHASE
Subtask 6.1 Provide assistance to City staff during bid process including: attendance at pre-bid
meeting, assist City in responding to bid questions, and issue addenda as required.
Subtask 6.2 Assist City in review of submitted bids.
TASK 7: CONSTRUCTION ADMINISTRATION PHASE (Amendment No. 2)
Subtask 7.1 Twenty-four (24) Weekly Construction site meetings with architect (assume 6 months
construction timeframe).
Subtask 7.2 Six (6) monthly Site visits for mechanical, electrical and audio visual engineers.
Subtask 7.3 Process and document as required General Contractor’s Requests for Information (RFI’s).
Subtask 7.4 Process product submittals and shop drawings.
Subtask 7.5 Review and evaluate substitutions to products and equipment submitted by the General
Contractor.
Subtask 7.6 General Contractor payment request and progressive lien waiver review. Sub-contractor
lien waiver documentation and verification responsibility of the General Contractor.
Subtask 7.7 Punch-list site at substantial completion. Develop punch list of items for correction.
Follow-up evaluation of punch list items at final completion.
Subtask 7.8 Review of General Contractor’s Operations and Maintenance Manual and warranties.
Subtask 7.9 Perform project closeout activities and prepare final record plan set from contractor
markups.
Contract C12144101 Amendment No. 2 Page 8
WORK PLAN
WAYFINDING TASKS
PARAGRAPH 5.4 SCOPE OF WORK | WORK PLAN
PROPOSAL SCOPE OF WORK
The Square Peg Proven Project Approach and Design Process
Square Peg employs a proven project process and design approach based on a well defined schedule of
evaluation, progress and milestone review meetings with the Client and the Design team. The checks and
balances built in the this highly collaborative process ensures that the
• Vision and goals are clearly understood at the onset of the project
• Pertinent information is collected and analyzed
• Design work is concepted and refined based on multiple reviews by the Client and Design Team
• Documentation is subjected to multiple reviews
• One or more of the key sign types are prototyped prior to final production for Client and
Design Team approval.
• Construction administration and installation oversight services ensure continuity and control
throughout the entire process.
Square Peg will thoroughly review the existing signing, study circulation etc in preparation to
develop a new wayfinding and signing program. The new program will address the following:
1. Integrate the signage and an electronic information kiosk from Task 1 into a programmatic and
unified City Hall signage program that will readily direct members of the public to service locations
throughout the various departments on all levels of City Hall (including the Police Wing); including
paths of travel from the exterior of the building.
2. Improve signage on the building exterior to direct members of the public to the Police Department
offices on Forest Avenue. Coordinate the new signage with the signage on the Downtown Library
across the street.
3. Provide an easy means of identifying parking locations in the underground City Hall Garage which
will readily assist customers in relocating their vehicle.
4. Incorporate signage to direct customers from the parking garage to the location of an information
kiosk on the First Floor.
5. Provide signage and terminology that assists the customer to readily locate the service provider
within City Hall that can address their needs. Integrate service descriptions with department names
into unified naming conventions.
6. Coordinate the design of informational signage in the elevator lobbies with ongoing efforts by the City
Manager’s Office to integrate photographs evocative of the services provided on each floor of the
building with the accompanying signage.
Contract C12144101 Amendment No. 2 Page 9
Based on the scope outline from the RFP and past experience with similar projects we anticipate the scope of
signs to include, but is not limited to:
Based on the scope outline from the RFP and information gained at the interview with the City, we
anticipate the scope of signs may include, but is not limited to:
SITE SIGNING
Project/Building Identity Signing
Parking Garage Entrance ID Sign
Directional Signing
Accessibility Signing
Signing at Entry Doors
Entrance ID Signing
Pedestrian Directional & Information Signing
Building Entry Identification Graphics at Entry Doors (Address, HC Accessibility, No Smoking, etc.)
Emergency Assembly Area Signing
Building Address
PARKING
Parking Entry ID
Clearance Bar
Vehicular Directional Signing
Pedestrian Directional Signing
Column and Core Graphics
Misc Room ID Signing
INTERIOR SIGNING
Orientation Directory/Information Display or Kiosk (Static
/ Dynamic) - Main Lobby
- Secondary Entry Lobbies
- Elevator Lobbies at Upper Levels
Floor Level ID in Elevator Lobbies
Floor Level Directories and/or Orientation Maps
Directional Signing
Changeable Displays for Daily Events,
Information, etc ( Digital System
and/or Static)
Service Window Signing ( Digital System and/or Static)
Informational Signing in Elevator Cabs ( Digital System and/or Static)
NOTE: The design process for signing will be closely coordinated with WMB Architects and GB
Engineers to insure a well integrated design solution.
Contract C12144101 Amendment No. 2 Page 10
Square Peg will explore and incorporate technology as potential solutions at multiple locations
throughout the project. A combination of design, cost and evaluation of benefits will be provided to the
client with regard to proposed technology solutions as a means to inform the design decisions and
approvals.
SCOPE EXCLUSIONS
Items that are specifically excluded from the scope of work include:
Signing for Non Public Areas such as office areas and back of house:
Room Identification Signing
Department/Area Identification
Office ID
Workstation ID
Conference Room ID Misc Room ID
Back of House Room ID
Evacuation Maps at Elevators, Stairs and Exits
Preparation of building floor plans for use in sign location plans. It is assumed that the client will
provide SPD with building plans for use in preparation of sign location plans and documents.
Logo design
Print & Amenity design
Sculptures / Feature pieces
Content Design of Digital Media for Digital Displays. Note: SPD can provide content solutions as
additional service if requested, or recommend other means of creating and/or obtaining content.
Should any of these items be required Square Peg Design can provide them as an additional service.
PHASE 1 WAYFINDING STRATEGY AND SCHEMATIC DESIGN
During this phase of work, SPD will meet with the Client and consultants to review the project goals,
existing design concepts, program criteria, and design influences. This phase shall include, but not limited
to, the following tasks and design work:
1. Meet with Client and consultants to review the project goals, existing design concepts, program
criteria, design influences etc.
2. Conduct wayfinding survey to determine overall signage strategy. Systematically study pedestrian and
vehicular traffic flow as it relates to ingress, egress and circulation within the development.
3. Conduct appropriate research on potential design influences, available technologies, materials and
finishes.
4. Collect all relevant data available for the Project to include:
-Architectural plans and drawings
-Existing design themes and details
-Details of architectural elements
Contract C12144101 Amendment No. 2 Page 11
5. Prepare preliminary programming for sign locations and message schedules.
6. Confirm required sign types and environmental graphic elements.
7. Review of municipality and authorities regulations.
8. Produce three (3) design concepts for physical form and scale of signage including proposed
materials, finishes, colors.
9. Coordinate design concepts with the architecture and lighting.
10. Based on design concepts and proposed sign quantities, prepare implementation budgets for review and
discussion with client.
11. Present Schematic Design Concepts, budgets and phasing options for comment
and approval.
MEETINGS
1. Kickoff Meeting
2. Interim Meetings with City Staff and Design Team as needed for coordination
3. Schematic Design presentation
PHASE DELIVERABLES
1. Schematic drawing package showing three (3) signage concepts
2. Preliminary power, data and structural requirements.
3. Preliminary sign location plans and phasing options
4. Preliminary implementation budgets.
PHASE ACTION REQUIRED BY CLIENT
Client review, comment, selection of one Schematic design direction and final approval of all phase
deliverables to proceed into Phase 2.
PHASE 2 DESIGN DEVELOPMENT
Based on the approved Schematic Design direction from Phase 1, Square Peg will develop and apply the
approved design direction to all remaining sign types.
The following is expected during this phase of work:
1. Develop the approved Schematic Design per comments from Phase 1 and apply to all remaining sign
types.
2. Coordinate all sign sizes, locations, power and structural requirements with the Design Team
and project Consultants.
3. Refine and finalize signing typography, icons, materials and finishes
4. Prepare sign message schedules listing all proposed sign types and message copy.
5. Prepare Design Development presentation
6. Present developed materials for approval
MEETINGS
1. Interim design coordination with the city and design consultants as needed
2. Present Final Design
Contract C12144101 Amendment No. 2 Page 12
PHASE DELIVERABLES
1. Design Development drawings for all sign types.
2. Sign location plans and message schedule(s) for all required sign types.
3. Power, data and structural requirements per sign type
4. Sign implementation budget.
5. Material samples as necessary for review.
PHASE ACTION REQUIRED BY CLIENT
Client review, comment and final approval of all phase deliverables to proceed into Phase 3.
PHASE 3 DOCUMENTATION
The purpose of Phase 3 is to provide design intent documentation and technical detailing sufficient in detail to
facilitate tendering and fabrication by a qualified sign fabricator.
The Documentation Phase shall include, but not limited to, the following:
1. Prepare design intent documentation drawings sufficient in detail to facilitate bidding and
fabrication by a qualified sign fabricator.
2. Coordinate all sign sizes, locations, power and structural requirements with the design team.
3. Document design details for all sign types.
4. Specify and document signing colors, illumination and materials.
5. Write performance specifications for all signing colors, illumination, materials and installation as
required.
6. Finalize typography.
7. Finalize sign location plans and message schedules.
8. Produce final set of documentation drawings for signing and graphic elements.
MEETINGS
1. Coordination with the city and design consultants as required
PHASE DELIVERABLE
At the completion of the Documentation Phase, we will deliver Final Documents to the Client.
Documents shall include, but not limited to, the following deliverables and presentation materials:
1. Design Intent documentation sufficient in detail to facilitate tendering and fabrication by a
qualified sign fabricator.
2. Specifications
3. Final sign location plans and message schedule(s) for all required sign types.
Contract C12144101 Amendment No. 2 Page 13
Documents will be issued as follows:
1. Design documentation drawings for signing elements in Illustrator CS4 on Mac OS X platform: CD and
three (3) hard copies, Tabloid format
2. Location Plans - CAD 2010, CD and three (3) hard copies
3. Message Schedule - Filemaker: CD and three (3) hard copies
PHASE 4 CONSTRUCTION ADMINISTRATION
The purpose of Phase 4 is to provide Construction Administration services for the Exterior, Parking and
Interior Signing.
To insure the design intent and desired quality of fabrication is achieved, SPD will coordinate with the selected
fabricator through the submittal, fabrication and installation phases of work to answer questions, provide
details and information. SPD will also review submittals, installation and a final inspection of the completed
installation.
Tasks to included:
1. Review, comment and approval of shop drawings, materials, mock-ups and samples.
2. Review Prototypes and Samples.
3. Provide details and sketches to clarify design intent.
4. Coordinate with the fabricator on Site regarding sign locations.
5. Up to four (4) site visits.
6. Respond to requests made by fabricator for clarification of Contract Documents.
7. Inspect final Installations and prepare punchlist of items for correction.
8. Follow-up evaluation of punch list items at final completion.
9. Perform project closeout activities and prepare final record plan set from contractor markups.
Contract C12144101 Amendment No. 2 Page 14
WMB ARCHITECTS Contract C12144101 - Amendment No. 2
Exhibit "B" - Project Schedule
City Hall Remodel
A M J J A S O N D J F M A M J J A S O N D J
Program Confirmation
Design Development
Construction Documents
Plan Review
Bidding
Construction
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2013 2014 2015
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EXHIBIT “C”
COMPENSATION
CONTRACT C12144101 - AMENDMENT No. 2
The CITY agrees to compensate the CONSULTANT for professional services performed in accordance
with the terms and conditions of this Agreement, and as set forth in the budget schedule below.
Compensation shall be calculated based on the hourly rate schedule attached as EXHIBIT “C-1” up to the
not-to-exceed budget amount for each task set forth below.
The compensation to be paid to CONSULTANT under this Agreement for all services described in
EXHIBIT “A” (“Scope of Work”) and reimbursable expenses shall not exceed Three Hundred Eighty-
Seven Thousand Five Hundred Five Dollars [$387,505.00]. CONSULTANT agrees to complete all
Basic Services, including reimbursable expenses, within this amount. In the event CITY authorizes any
Additional Services, the maximum compensation shall not exceed Four Hundred Twenty-Six
Thousand Two Hundred Fifty-Six Dollars [$426,256.00]. Any work performed or expenses incurred
for which payment would result in a total exceeding the maximum amount of compensation set forth
herein shall be at no cost to the CITY.
CONSULTANT shall perform the tasks and categories of work as outlined and budgeted below. The
CITY’s project manager may approve in writing the transfer of budget amounts between any of the tasks
or categories listed below provided the total compensation for Basic Services, including reimbursable
expenses, does not exceed Three Hundred Eighty-Seven Thousand Five Hundred Five Dollars
[$387,505.00] and the total compensation for Additional Services does not exceed Thirty-Eight
Thousand Seven Hundred Fifty-One Dollars [$38,751.00].
Attachment C
ORDINANCE NO.XXXX
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO
AMENDING THE BUDGET FOR FISCAL YEAR 2014 TO PROVIDE
ADDITIONAL APPROPRIATION OF $1,607,109 IN THE FIRST
FLOOR RENOVATIONS PROJECT (PE-12017), BUDGETED IN
THE CAPITAL IMPROVEMENT FUND, FOR ENHANCEMENTS TO
CITY HALL, RESULTING IN NO IMPACT TO THE
INFRASTRUCTURE RESERVE. A SERIES OF TRANSFERS INTO
THE CAPITAL IMPROVEMENT FUND WILL OFFSET THE
INCREASED BUDGET AMOUNT, INCLUDING: $686,298 FROM
THE COMMUNITY CENTER DEVELOPMENT IMPACT FEE FUND,
$499,335 FROM THE TECHNOLOGY FUND, AND $668,437
FROM THE UTILITIES ADMINISTRATION FUND. THE
TRANSFERS FROM THE COMMUNITY CENTER DEVELOPMENT
IMPACT FEE FUND ($696,298), TECHNOLOGY FUND
($517,962), AND UTILITIES ADMINISTRATION FUND
($685,121) WILL BE OFFSET BY DECREASES TO THE FUND
BALANCES TO EACH RESPECTIVE FUND. THESE TRANSFERS
FROM OTHER FUNDS WILL ALLOW FOR AN INCREASE TO THE
INFRASTRUCTURE RESERVE IN THE AMOUNT OF $246,961.
The Council of the City of Palo Alto does ordain as follows:
SECTION 1. The Council of the City of Palo Alto finds and
determines as follows:
A. Pursuant to the provisions of Section 12 of Article
III of the Charter of the City of Palo Alto, the Council on
June 10, 2013 did adopt a budget for Fiscal Year 2014; and
B.At the time the 2014 Adopted Budget was being
considered by the City Council, the costs associated with the
First Floor Renovation project were not known; and
C. The project will provide for enhancements to City Hall
in order to allow for better civic engagement. Improvements
include: a remodel to the main lobby, including coordination
with a new digital public art element; an enhancement to the
heating, ventilation, and air conditioning (HVAC) system in
the lobby area in order to handle the increased loads from the
new community meeting room and digital art installation; a
restoration to the terrazzo floor of the main lobby;
conversion of the existing People Strategy and Operations
conference room to a new City Council conference room;
conversion of the existing City Council conference room to a
new training and multipurpose meeting room; creation of a new
community meeting room beside the main lobby; installation of
broadcast media capabilities for all the new lobby-level
meeting spaces; modification of the lobby payment counter to
match the new architectural style of the lobby and provide a
lower ledge for writing checks and signing forms; conversion
of the Revenue Services offices into new Utilities Customer
Service counter and offices; reconfiguration and renovation of
mezzanine level offices; reconfiguration and renovation of
second floor offices; new carpeting and bench upholstery for
City Council chambers; and remodeling the three building
elevator cabs.
D.In April 2014, the City posted a notice inviting
formal bids (IFB) for the project, with a bidding period of
nineteen calendar days; and
E. Bids were received from one qualified contractor on
May 6, 2014 with a base bid of $2,664,000, plus add alternates
of $54,350, bringing the total bid to $2,718,350. This bid
amount is 19% higher than the construction cost estimate,
indicative of the busy local construction climate.
F. Staff recommends that the bid of $2,718,350 submitted
by D.L. Falk Construction, Inc. be declared the lowest
responsible and responsive bid; and
G. A contingency amount of $271,835, equal to ten percent
of the total base bid contract amount, is requested for
related, additional, but unforeseen work which may develop
during the project.
SECTION 2.The sum of One Million Six Hundred Seven
Thousand One Hundred and Nine Dollars is hereby appropriated
for the City Hall First Floor Remodel Project. To offset the
increased a portion of the increased costs in the Capital
Improvement Fund, a series of transfers are recommended,
including Six Hundred Eighty Six Thousand Two Hundred Ninety
Eight Dollars from the Community Center Development Impact Fee
Fund, One hundred thirty three thousand six hundred eighty
seven dollars from the Electric Fund, One hundred thirty three
thousand six hundred eighty seven dollars from the Gas Fund,
One hundred thirty three thousand six hundred eighty seven
dollars from the Wastewater Collection Fund, One hundred
thirty three thousand six hundred eighty seven dollars from
the Water Fund, One hundred thirty three thousand six hundred
eighty seven dollars from the Fiber Optics Fund, and four
hundred ninety nine thousand three hundred and thirty five
dollars from the Technology Fund. The transfers in from the
various funds would be offset by reductions to each respective
funds ending fund balance. Finally, as a result of the
transfers in to the Capital Improvement Fund from the various
funds, the Infrastructure Reserve can be increased by two
hundred forty six thousand nine hundred sixty one dollars.
SECTION 4. As provided in Section 2.04.330 of the Palo
Alto Municipal Code, this ordinance shall become effective
upon adoption.
SECTION 5.The Council of the City of Palo Alto hereby
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:
ABSTENTIONS:
ABSENT:
ATTEST:APPROVED:
City Clerk Mayor
APPROVED AS TO FORM:
City Manager
Director of Public Works
Director of Administrative
Services
" ----------
City Council/City Manager
City of Palo Alto
Palo Alto, California
BID FORM (Revised per Addendum No.1)
Name of Company D.L. Falk Construction Inc.
In response to this Invitation For Bids (IFB), the undersigned, as Bidder, declares that the only persons or parties
interested in this Bid as principals are those named herein; that this Bid is made without collusion with any other
person, firm or corporation; that the Bidder has carefully examined the location of the proposed work and the
plans and specifications herein referred to; and that the Bidder proposes and agrees, if this Bid is accepted, ~o
contract with the City of Palo Alto (City), to provide all' necessary materials, equipment, tools, apparatus, and
other means of transport services, and to do all the Work and comply with all the specified requirements in this
IFB, in the manner herein prescribed and for the prices stated in the following Bid:
Project Title: CITY HALL REMODEL
A: Base Bid: Provide all labor, equipment material, transportation and applicable taxes, profit, insurance,
bonds and other overhead to perform the Work in accordance with the Project Plans and
Technical Specifications, herein:
BID APPROX UNIT DESCRIPTION, WITH UNIT PRICE IN WORDS UNIT TOTAL ITEM
ITEM (EACH BID ITEM SHALL INCLUDE ALL APPLICABLE TAXES, PRICE PRICE
QUANTI PROFIT, INSURANCE, BONDS, AND OTHER OVERHEAD)
TV
1. 1 LS Upgrade the aesthetic and functionality of the Council $ fPC I~ Conference Room, Human Resources Conference Room,
Lobby Area, Mezzanine, Level 2, and Elevator Cabs at Palo 1\"" I
Alto City Hall. rv~ . ~'V~
2. 1 lS Moving Allowance $70,000 $70,000
0
Base Bid Total (item 1 and 2) $ cfJ
1.\1
(Total in words: -It-Jo ~1'~·f2V1. t A~[~ ~;Jr-&IAL ~~ \b\J ~/K (\..-\
II
II
II
II
ADDENDUM NO. ONE TO CITY OF PALO ALTO IFB 153838 PAGE 3 OF 6
B: Additive Alternate Bid: Provide all labor, equipment material, transportation and applicable taxes, profit,
insurance, bonds and other overhead to perform the Work in accordance with the Project Plans and Technical
Specifications, herein:
-BID APPRO UNIT
ITEM X.QTY.
1. 1 LS
2. 1 .LS
1 LS
4. 1 LS
s. 1 LS
DESCRIPTION, WITH UNIT PRICE IN WORDS .' ..... _.-'" -UNlt·--'TOTAL ITEM
(EACH BID ITEM SHALL INCLUDE ALL APPLICABLE TAXES, PRICE PRICE
PROFIT, INSURANCE, BONDS, AND OTHER OVERHEAD)
Community Meeting Room: Upgrade AV01-Allow $ $
multiple video camera feeds to be displayed on LCD
screens, i.e. Camera #1 may be displayed on LCD #1 while
Camera #2 is displayed on LCD #2. Routing will be achieved 1/ 'boo 7, Sera
via intuitive controls on Community Meeting Room touch
panel display. . ~e,J P/of\ .\{...ov.'.J,ilrl.J e.;\~"'( h .... ,,~( e!
(Unit Price in Words)
Lobby: Upgrade AV02 -Allow each LCD screen to show
separate sources (in addition to ability to send one source
scaled across the entire LCD screen array). Routing to
individual displays will be achieved via intuitive controls on
associated touch panel display.
Lobby: Upgrade AV03 -One LCD screen (at ADA-compliant
height) shall be touch-capable, and allow users to access
way-finding information on.theLCD screen array. For
example, if a user would like directions to the Flexible
Meeting Space, they may use the touch-enabled LCD
screen to get directions to the room from their current
location.
LiVv +t-.~\I\.V\!. C\ C\-'I'
(Unif Price in Words)
Conference Room: Upgrade AV04 -Allow multiple video
camera feeds to be displayed on LCD screens, i.e. Camera
#1 may be displayed on LCD #1 while Camera #2 is
displayed on LCD #2. Routing will be achieved via intuitive
controls on Conference Room touch panel display.
(Unit Price in Words) ~l «.. ~~cl
Flexible Meeting Space: Upgrade AVOS -Include (2)
Panasonic AW-HE60S cameras on ceiling for routing to
recording hardware in Council Chambers Control Room.
Allow either camera feed to be displayed on LCD screen in
room
(Unit Price in "r,ords) , l I~'\IJ.AI .n -W\.O\,\,~\/\U-\-wo llA.vt.4.,« t!
$ $
$ $
(O~O ~DC-O , .. ,..J)
$ $
., I CJOO
$ $
ADDENDUM NO. ONE TO CITY OF PALO ALTO IFB 153838 PAGE 4 OF6
BID APPRO UNIT DESCRIPTION, WITH UNIT PRICE IN WORDS UNIT TOTAL ITEM
ITEM X.QTY. (EACH BID ITEM SHALL INCLUDE ALL APPLICABLE TAXES, PRICE PRICE
PROFIT, INSURANCE, BONDS, AND OTHER OVERHEAD)
6. 1 LS Expand existing AMAG Security Access Control System to $ $
include Doors No: 107.1, 109.1, 126.1, 122.1, 122.2, 123.1,
MOS.l, Mo6.1 and.20S.1.
1,~OO +~OO
&)tJufN\. ~ lztNifl. A tIlilft-l kJ.'lt-J..
Additive Alternate Bid Total (item 1 through 6) $
(Total in words: 6~~¥ ~\W' ~tA~~ lctL ~JctJ cJhf ) :;4 Ii:> 'fiV
C: Deductive Alternate Bid Total: Provide all labor, equipment material, transportation and applicable taxes,
profit, insurance, bonds and other overhead to perform the Work in
accordance with the Project Plans and Technical Specifications, herein:
BID APPRO UNIT DESCRIPTION, WITH UNIT PRICE IN WORDS UNIT TOTAL ITEM
ITEM X.QTY. (EACH BID ITEM SHALL INCLUDE ALL APPLICABLE TAXES, PRICE PRICE
PROFIT, INSURANCE, BONDS, AND OTHER OVERHEAD)
1. 1 LS Delete Elevator Interiors Package $ $ ~-1S' i\~~l--1r k Ib",~ C'"'-I ~~!h! ~~~ ~Ve.., ~~~1S' (Unit rice in words) 'b't-,
2. 1 LS Delete AV @ Entry Wall including power, data and $ $
monitors refer to Sheet AV2.1, Note 1 ':00 e.ttv tiN ~~s,."J. eir;tt-~~V\cLftJ e::\~~'f 'J(o~~O ~ q,\ol
( nit Price in Words)
3. 1 LS Delete metal panels at entry surrounding restroom core. $ $
As shown on sheet A 2.4. On lieu of install 5/8" gyp board
over th e specified new furring. Tape, texture and paint (n) t;DO
gyp board. ~1~oO ~Chl ~l> ~""c"tAMJ t;\It hl.lMclH~ e;1.1
(Unit Price in Words)
4. 1 LS Delete decorative glazing at doors to Community Meeting $ $
Room (refer to door schedule Sheet A 8.1) and replace
with X" clear tempered glazing. 0° \6D ~ ... t ~ ~~ I)ttt.. "'~~u" \ " \" (Unit Price in Words)
S. 1 LS Delete Folding walls at Community Meeting Room, replace $ $
with fixed anodized aluminum frame storefront system
00 00 ~~i:~nst:;~:rrf<::ed Cl-ea 'II\J ~ 1\;\ I (Unit Price in Words)
ADDENDUM NO. ONE TO CITY OF PALO ALTO IFB 153838 PAGE 5 OF 6
BID APPRO UNIT DESCRIPTION, WITH UNIT PRICE IN WORDS UNIT TOTAL ITEM
ITEM X.QTY. (EACH BID ITEM SHALL INCLUDE ALL APPlicABLE TAXES, PRICE PRICE
PROFIT, INSURANCE, BONDS, AND OTHER OVERHEAD)
6. 1 LS Delete Drinking Fountain Replacement with Water Filling $ $
stations on Floor level A, 1, 2, 3, 4, 5, 6, and 7. See Sheet
P.01Note P of General Plumbing Notes. .. qOb ,\00 ~i '\:)I sttc ~,a-V'l-J "".V\t U(-eJ (~nit Price iti or s)· ~lP' ~l
7. 1 LS Delete all work associated with Finance Department $ $
counter including casework, decorative glazing and
terrazzo floor infill as shown on sheets D2.1,A2.1, A2.4 and L{"I .. P .;..",0 Ani r.",(vy -S~\C ~S~ ~w '-t~tJ. ~v..hl yIJ 1 I.\,tp\
(Unit Price in Words)
8. 1 LS Delete all work in City Council Chambers as shown of Sheet $ $
A1D.l-CC, including installation of new carpeting and ~tP reupholster of existing bench style seating. 0° ~~~"'" f1.,vw~~ M~ ~ ~ i,() \
'h01 ( nit Price in Words)
9. 1 LS In lieu of replacing suspended ceiling systems as specified $ $
on the Mezzanine and Second Floor levels, maintain
existing suspended grid system as currently installed.
Modify existing grid system as required to accommodate
'lr
0
1/0 new specified fixtures and mechanical diffusers. Replace 7~ ceiling' tiles with specified tiles. Refer to sheet A 9.2 ~~ ~t.t-~\II.<"~ e.Aj"-\-",IAI"-ar~! +-wev--~I
(Unit Price in Words)
Deductive Alternate Bid Total (items 1 through 9) $
(Total in words: ) 4~11n~
~\.W ~ ~f~" .h.J& ./-L.IL~ J ,u,u.t. l. ..J "...,~ .u.. ;,-1.,'1/ t:.a "tlf!...
D. Addenda
During the Bid process there may be changes to the Contract Documents, which would require an
issuance of an addendum or addenda. City disclaims any and all liability for loss, or damage to any
Bidder who does not receive any addendum issued by City in connection with this IFB. Any Bidder in
submitting a Bid is deemed to waive any and all claims and demands Bidder may have against City on
account of the failure of delivery of any such addendum to Bidder. Any and all addenda issued by City
shall be deemed included in this IFB, and the provisions and instructions therein contained shall be
incorporated to any Bid su bmitted by Bidder.
To assure that all Bidders have received each addendum, the following acknowledgment and sign-off is
required. Failure to acknowledge receipt of an addendum/addenda may be considered an irregularity in
the Bid:
ADDENDUM NO. ONE TO CITY OF PALO ALTO IFB 153838 PAGE 6 OF6
City of Palo Alto (ID # 4871)
City Council Staff Report
Report Type: Action Items Meeting Date: 6/16/2014
City of Palo Alto Page 1
Summary Title: Postpone Weed Abatement
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 - (STAFF REQUESTS THIS ITEM BE
CONTINUED TO AUGUST 4, 2014)
From: City Manager
Lead Department: Fire
Staff requests this item be continued to Monday, August 4, 2014 to allow additional
time for supporting information to be submitted.
City of Palo Alto (ID # 4899)
City Council Staff Report
Report Type: Action Items Meeting Date: 6/16/2014
City of Palo Alto Page 1
Summary Title: Fiscal Year 2015 Budget Adoption (continued from 6/9/14)
Title: Public Hearing: Adoption of the Budget Ordinance for Fiscal Year 2015,
including Adoption of Operating and Capital Budgets and Municipal Fee
Schedule; Ordinance of the Council Amending Chapter 2.08 of Title 2 of the
Palo Alto Municipal Code to Add Section 2.08.250 Creating a New
Department of Development Services; Adoption of five Resolutions,
including: Adopting a Dark Fiber Rate Increase of 2.6% and Amending Utility
Rate Schedules EDF-1 and EDF-2; Amending Utility Rate Schedule D-1 (Storm
and Surface Water Drainage) to Increase Storm Drain Rates by 2.6 Percent
Per Month Per Equivalent Residential Unit for Fiscal Year 2015; Amending the
2012-2013 Compensation Plan for Management and Professional Adopted by
Resolution No. 9357 to Add One New Position and Change the Title of Two
Positions; Amending the 2013-2015 Memorandum of Agreement Service
Employees International Union (SEIU), Adopted by Resolution No. 9398 to
Add One New Position and Correct the Salary of One Position; and Amending
the Terms for the Utility Management Professional Association, Adopted by
Resolution No. 9359 to Correct the Salary for One Position and Add Two New
Positions (CONTINUED FROM JUNE 9, 2014)
From: City Manager
Lead Department: Administrative Services
Recommendation
Staff and the Finance Committee recommend that Council approve the following except for the
Human Services Resource Allocation Process (HSRAP) funding in the amount of $1,247,798 and
staff recommends that Council approve the HSRAP funding in the amount of $1,247,798 based
on previous City Council action:
A. Budget Amendment Ordinance, which includes:
1. Exhibit 1: the City Manager’s Fiscal Year 2015 Proposed Operating and Capital
Budget, previously distributed in the May 6th Council Packet; Fiscal Year 2015
Proposed Municipal Free Schedule previously distributed on May 29th
2. Exhibit 2: Amendments to the City Manager’s Fiscal Year 2015 Proposed
City of Palo Alto Page 2
Operating and Capital Budget
3. Exhibit 3: Revised City Table of Organization
4. Exhibit 4: Revised Municipal Fee Schedule pages
B. Ordinance of the Council of the City of Palo Alto Amending Chapter 2.08 of Title 2 of the
Palo Alto Municipal Code to Add Section 2.08.250 Creating a New Department of
Development Services
C. Resolution of the Council of the City of Palo Alto Adopting a Dark Fiber Rate Increase of
2.6% and Amending Utility Rate Schedules EDF-1 and EDF-2
D. Resolution of the Council of the City of Palo Alto Amending Utility Rate Schedule D-1
(Storm and Surface Water Drainage) to Increase Storm Drain Rates by 2.6 Percent Per
Month Per Equivalent Residential Unit for Fiscal Year 2015
E. Resolution of the Council of the City of Palo Alto Amending the 2012-2013
Compensation Plan for Management and Professional Adopted by Resolution No. 9357
to Add One New Position and Change the Title of Two Positions
F. Resolution of the Council of the City of Palo Alto Amending the 2013-2015
Memorandum of Agreement Service Employees International Union (SEIU), Adopted by
Resolution No. 9398 to Add One New Position and Correct the Salary of One Position
G. Resolution of the Council of the City of Palo Alto Amending the Terms for the Utility
Management Professional Association, Adopted by Resolution No. 9359 to Correct the
Salary for One Position and Add Two New Positions
Executive Summary
On June 9, 2014, the City Council conducted the first budget hearing for the adoption of the
Fiscal Year 2015 budget and tentatively approved the Fiscal Year 2015 Proposed Revised Budget
including additional funding for the Human Services Resource Allocation Process (HSRAP). This
item is continued from June 9, 2014 to June 16, 2014. Please refer to staff report ID #4853 for
staff’s report for the Fiscal Year 2015 Budget Adoption and attachments listed in the
recommendation language and the supplemental information in this report.
At the budget hearing the City Council tentatively approved an additional funding of $68,380
for HSRAP increasing the Fiscal Year 2015 Revised Proposed Budget funding from $1,247,798 to
$1,316,178 and a one-time HSRAP Reserve of $50,000 for future use. Additionally, this
supplemental report responds to a question from Council regarding the representation of
Development Impact Fees for Community Centers, Libraries, and Parks in the Fiscal Year 2015
Proposed Municipal Fee Schedule.
Discussion
On June 9, 2014, the City Council conducted the first budget hearing for the adoption of the
Fiscal Year 2015 budget and tentatively approved the Fiscal Year 2015 Proposed Revised Budget
including additional funding for the Human Services Resource Allocation Process (HSRAP). This
item is continued from June 9, 2014. Please refer to staff report ID #4853 for staff’s report for
the Fiscal Year 2015 Budget Adoption and attachments listed in the recommendation language
and the supplemental information in this report.
City of Palo Alto Page 3
At the budget hearing the City Council tentatively approved an additional funding of $68,380
for HSRAP increasing the Fiscal Year 2015 Revised Proposed Budget funding from $1,247,798 to
$1,316,178 and a one-time HSRAP reserve of $50,000 for future use offset with a reduction to
the projected Fiscal Year 2015 Budget Stabilization Reserve ending balance. The additional
funding of $68,380 will be referred to the Human Relations Commission (HRC) for funding
allocation review. Based on that review, staff will bring forward the HRC recommendations for
City Council consideration after the July recess. On May 19, the City Council approved a 2.6%
Consumer Price Index increase for HSRAP amounting to $31,620. At the June 9, 2014 City
Council meeting, the City Council directed that this amount be allocated on a pro-rata basis to
all existing HSRAP agencies including PACCC and Avenidas.
With the additional HSRAP budget allocation and the HSRAP reserve, the Fiscal Year 2015
General Fund expenditure budget, if adopted, will be at approximately $171.1 million and the
projected Fiscal Year 2015 Budget Stabilization Reserve ending balance will be at $31.8 million
at a target level of 18.6%.
Additionally, at the City Council meeting Council had a follow-up question regarding the
representation of Development Impact Fees (DIFs) for Community Centers, Library, and Parks in
the Fiscal Year 2015 Proposed Municipal Fee Schedule. In the Fiscal Year 2015 Proposed
Municipal Fee Schedule (p. 23-3), the impact fees for commercial and industrial DIFs are the
same. However, in a recent staff report, which was scheduled to be heard by the City Council
on May 19 (CMR# 4805), staff’s proposal for imposition of new Public Safety Facility and
General Government Facilities fees are broken out by industrial and commercial fees. In this
report, which has been continued twice, the proposed methodology distinguishes between
commercial and industrial uses and the corresponding DIFs are set at different rates. Staff
plans to bring forward this report during the first quarter of Fiscal Year 2015 for final approval.
In 2002, the City Council established DIFs for Parks, Community Centers, and Libraries by
establishing Chapter 16.58 of the Palo Alto Municipal Code. With the approval of this municipal
code change (see CMR# 146:02), the City Council approved the current structure of the DIFs
with commercial and industrial DIFs assessed at the same level. The DIFs in the Fiscal Year 2015
Proposed Municipal Fee Schedule are based on City Council approval of these fees in 2002. At
this point, Staff is not proposing to change the methodology for the existing DIFs, although, if
directed by the Council, could expand the scope of the work plan for the new DIFs.
CITY OF PALO ALTO OFFICE OF THE CITY ATTORNEY
June 16, 2014
The Honorable City Council
Palo Alto, California
Discussion and Council Direction Regarding Potential November 2014
Charter Amendments Relating to Council Seats, Including Reducing the
Number of Council Seats from Nine to Seven, Increasing the Limit on
Terms from Two to Three Terms, Providing for Terms to Begin in
December and Other Matters
Recommendation
Direct staff whether to return to Council with a resolution calling an election and putting the
following Charter changes before the voters:
1. Term limits:
a. Increase permissible terms from 2 to 3
b. Implement in 2018 or some other date
2. Number of seats:
a. Reduce Council seats from 9 to 7
b. Implement in 2018 or some other date
3. Beginning of Council terms:
a. retain January 1st date or move start of term to December
b. Effective immediately or on an alternate date
4. Eliminate requirement for local lottery to determine order of names on the ballot,
effective immediately
In addition, direct whether Charter amendments should be combined or separated into
separate measures for voter consideration.
Background
In 2013, the Council raised several proposals for changes to Council seats, terms and other
aspects of Council composition and structure. These issues were considered by Council on
February 4, 2013, June 3, 2013, and May 12, 2014, and by the Policy & Services Committee on
March 19, 2013 and May 20, 2014.
At the May 20, 2014, Policy & Services meeting the Committee made the following
recommendations:
Page 2
1. Increase Council term limits from a limit of two terms to a limit of three terms (3-1,
Schmid no)
2. Reduce the number of Council seats from nine to seven (3-1, Schmid no) , effective
immediately (3-1, Schmid no)
3. Retain the existing Charter language on Council compensation; return to Committee
(June 17th) to consider potential adjustments to Council compensation that may be
adopted by ordinance (3-1, Klein no)
4. Eliminate Charter language requiring a local lottery for order of candidate names on the
ballot (4-0)
The Committee discussed potential effective dates for a Charter amendment increasing term
limits. The Committee did not reach a recommendation on this issue, voting 2-2 (Klein, Schmid
no) on a motion to make the term limit change effective in 2018.
The Committee also did not reach a recommendation regarding whether to change the existing
Charter language providing that Council terms begin on January 1. The Committee voted 2-2
(Price, Scharff no) on a motion to begin Council terms at the first regular meeting after the
canvass of the returns and the declaration of results, which customarily occurs in early
December.
The Committee generally concurred that any Charter changes should be proposed as separate
ballot measures, with the following exception: because the proposal to eliminate language
providing for a local lottery for order of candidate names is an administrative clean-up item
only, the Committee recommended that to avoid incurring unnecessary election costs, it should
be paired with any (all) substantive Charter amendments that are put before the voters.
Discussion
Charter amendments require voter approval. A simple majority (50% of votes cast, plus 1) is
required. August 8th is the final date to call a local election and put a matter on the November
4, 2014, ballot.
The Charter must be amended in order to change term limits, the number of seats, the
beginning/end of council terms and the date of selection of the Mayor and Vice-Mayor. A
Charter amendment would also be required to increase council member compensation if that
increase was above the amounts authorized for general law cities. Other potential changes are
within the Council’s authority to enact, such as moving the Council’s ceremonial meeting earlier
in January, or increasing Council compensation within the amounts authorized for general law
cities.
Generally, a Charter amendment is effective upon declaration of the canvass of results and
filing with the Secretary of State. In the alternative, language can be inserted into the Charter
amendment providing that changes be implemented at a later date. Whether to do so is a
policy matter for the Council. Specific timing considerations are noted below.
Page 3
Term Limits
The Committee recommended extending term limits from two to three. The draft Charter
amendment would be as follows:
Sec. 2. Number - Term.
Commencing July 1, 1971, said council shall be composed of nine
members, each of whom shall be an elector and shall have been a
resident of the city of Palo Alto for at least thirty days next preceding the
final filing date for nomination papers for such office. The members of
said council shall be known as councilmen, councilwomen, or council
members and their terms of office shall be four years, commencing on
the first day of January next succeeding their election. The terms of
council members who took office on July 1, 1977, shall expire on
December 31, 1981. Commencing January 1, 1992, no person shall be
eligible to serve consecutively in more than two full terms of office as a
member of the council. Any partial term of office longer than two years
shall be deemed a full term. Terms of office commenced before January
1, 1992, shall not be counted when determining eligibility under this
section. Commencing [insert date], no Council Member shall serve more
than three consecutive full terms of office. Any partial term of office
longer than two years shall be deemed a full term.
Council is asked for direction on an implementation date. Options include upon passage, or for
terms beginning after elections in 2016, 2018, 2020 or 2022.
Reduction of Seats
The Committee recommended reducing the number of Council Members from nine to seven.
The central provision of draft Charter amendment would be as follows (with possible
conforming revisions to other sections of the Charter as necessary):
Sec. 2. Number - Term.
Commencing July 1, 1971 [insert date], said council shall be composed of
nine seven members, each of whom shall be an elector and shall have
been a resident of the city of Palo Alto for at least thirty days next
preceding the final filing date for nomination papers for such office. The
members of said council shall be known as councilmen, councilwomen, or
council members and their terms of office shall be four years,
commencing on the first day of January next succeeding their election.
The terms of council members who took office on July 1, 1977, shall
expire on December 31, 1981. Commencing January 1, 1992, no person
shall be eligible to serve consecutively in more than two full terms of
Page 4
office as a member of the council. Any partial term of office longer than
two years shall be deemed a full term. Terms of office commenced
before January 1, 1992, shall not be counted when determining eligibility
under this section.
To provide for a smooth transition to a seven member Council, Council could direct that the
change be implemented during the 2018 election cycle. In the alternative, it is conceivable that
could be made during the 2014 cycle (assuming that there is no change to the current Charter
language providing that terms begin on January 1st). Voters would be asked to vote for no more
than five candidates, but also informed that if the number of seats were reduced by two, only
the top three voters would serve.
Beginning of Terms
The Committee considered amending the Charter to:
Provide that Council terms begin on the first regular meeting of the Council that occurs
after the canvass of the returns of the election and the declaration of results by the
agency or officer authorized to make the declaration.
Provide that council members hold office until successors are elected and qualified.
Provide for selection of Mayor and Vice Mayor at the same meeting when new
members begin their terms.
Under state law, the County Registrar of Voters completes the canvass of returns within 28
days. The County transmits the results to the City Clerk, who issues the declaration of results.
This usually occurs in late November or early December. If the Charter were amended as
described above, the first regular Council meeting after the Clerk’s declaration would mark the
transition of terms. At that meeting, the Council would adopt the Resolution declaring the
results and swear in the new members.1 If for some reason a regular meeting were not held in
December, terms of outgoing members would continue until a regular meeting is held, resulting
in no “gap.” This approach to council transition is the one used by general law cities and by a
number of neighboring charter cities.
The central provision of draft Charter amendment would be as follows (with possible
conforming revisions and to other sections of the Charter as necessary):
1 Note that while the taking of the oath is a prerequisite to exercising official authority, it is not an element of
“election and qualification” for office. Under the proposed Charter amendment, the term of newly elected council
members would begin on the first regular meeting after the canvass of results and Clerk’s declaration, even if the
new member was not present to be sworn.
Page 5
Sec. 2. Number - Term.
Commencing July 1, 1971, said council shall be composed of nine
members, each of whom shall be an elector and shall have been a
resident of the city of Palo Alto for at least thirty days next preceding the
final filing date for nomination papers for such office. The members of
said council shall be known as councilmen, councilwomen, or council
members and their terms of office shall be four years, commencing on
the first day of January next succeeding their election. The terms of
council members who took office on July 1, 1977, shall expire on
December 31, 1981. the first regular meeting of the council following the
canvass of returns and declaration of results by the agency or officer so
empowered. Council members shall serve until their successors are
elected and qualified. Commencing January 1, 1992, no person shall be
eligible to serve consecutively in more than two full terms of office as a
member of the council. Any partial term of office longer than two years
shall be deemed a full term. Terms of office commenced before January
1, 1992, shall not be counted when determining eligibility under this
section.
Sec. 8. Mayor - Election - Duties.
The council shall, at its first regular meeting in January December or, in
even numbered years, at its first regular meeting when new members are
elected and qualified, elect one of its number as its presiding officer, who
shall have the title of mayor, and one of its number to be vice-mayor,
who shall serve for one year after their election, and until their
successors are elected and qualified. The mayor and vice-mayor shall
serve until election and qualification of their successors. The mayor shall
preside at all meetings of the council, shall sign all official documents
when the signature of the council or mayor is required by law, and shall
act as official head of the city on public or ceremonial occasions. The
mayor shall not have any regular administrative duties but may act as ex
officio member of all boards, commissions, and committees. The mayor
shall vote as other members of the council, but shall have no power of
veto. The mayor shall have the power to administer the oaths and
affirmations. The mayor shall perform such other duties as from time to
time are assigned by the council. When the mayor is absent from any
meeting of the council or incapable of performing his or her duties, the
vice-mayor shall, during such time, have the full powers of the mayor. A
vacancy in the positions of mayor or vice-mayor shall be filled by the
council for the unexpired term.
Page 6
Administrative Clean Up – Deletion of Local Lottery to Determine Order of Candidate Names
The Clerk recommends deleting the following Charter language requiring a local lottery to
determine order of candidate names. If this provision is eliminated, Palo Alto would follow the
general law, under which the Secretary of State conducts a lottery to determine the order.
Sec. 3. Candidates' designation.
No ballot used at any municipal election shall contain any reference to a
political party, and no designation or symbol shall be placed in
connection with the name of any candidate. The order of listing of
candidates' names on the ballot shall be determined by lot.
Separate Charter Amendments or Consolidated Measure
Council could direct that these changes be put before the voters in one ballot measure, or in 2
or more measures.
Almost all of the proposed changes are to Article III, Section 2. A consolidated measure that
reduces Council size, increases term limits and moves the beginning of terms to December
would appear approximately as follows:
Article III, Sec. 2. Number - Term.
Commencing July 1, 1971 [insert date], said council shall be composed of
nine seven members, each of whom shall be an elector and shall have
been a resident of the city of Palo Alto for at least thirty days next
preceding the final filing date for nomination papers for such office. The
members of said council shall be known as councilmen, councilwomen, or
council members and their terms of office shall be four years,
commencing on the first day of January next succeeding their election.
The terms of council members who took office on July 1, 1977, shall
expire on December 31, 1981. Commencing January 1, 1992, no person
shall be eligible to serve consecutively in more than two full terms of
office as a member of the council. Any partial term of office longer than
two years shall be deemed a full term. Terms of office commenced
before January 1, 1992, shall not be counted when determining eligibility
under this section. the first regular meeting of the council following the
canvass of returns and declaration of results by the agency or officer so
empowered. Council members shall serve until their successors are
elected and qualified. Commencing [insert date], no Council Member
shall serve more than three consecutive full terms of office. Any partial
term of office longer than two years shall be deemed a full term.
Page 7
Article III, Sec. 8. Mayor - Election - Duties.
The council shall, at its first regular meeting in January December or, in
even numbered years, at its first regular meeting when new members are
elected and qualified, elect one of its number as its presiding officer, who
shall have the title of mayor, and one of its number to be vice-mayor,
who shall serve for one year after their election, and until their
successors are elected and qualified. The mayor and vice-mayor shall
serve until election and qualification of their successors. The mayor shall
preside at all meetings of the council, shall sign all official documents
when the signature of the council or mayor is required by law, and shall
act as official head of the city on public or ceremonial occasions. The
mayor shall not have any regular administrative duties but may act as ex
officio member of all boards, commissions, and committees. The mayor
shall vote as other members of the council, but shall have no power of
veto. The mayor shall have the power to administer the oaths and
affirmations. The mayor shall perform such other duties as from time to
time are assigned by the council. When the mayor is absent from any
meeting of the council or incapable of performing his or her duties, the
vice-mayor shall, during such time, have the full powers of the mayor. A
vacancy in the positions of mayor or vice-mayor shall be filled by the
council for the unexpired term.
Article VII, Sec. 3. Candidates' designation.
No ballot used at any municipal election shall contain any reference to a
political party, and no designation or symbol shall be placed in
connection with the name of any candidate. The order of listing of
candidates' names on the ballot shall be determined by lot.
Timeline
August 8th is the last day to call a municipal election and place a matter on the November 4
ballot.
Resource Impact
Modest resources in the City Manager’s Office, Clerk’s Office and City Attorney’s Office will be
required to draft and implement the changes discussed in this report.
The Clerk reports that each item placed on the November 2014 ballot will cost approximately
$66,000 for services to the County Registrar of Voters and approximately $10,000 for
translation services.
Policy Implications
The items in this report are policy matters for the Council to determine, subject to voter
approval.
Page 8
Environmental Review
Council governance matters are not projects subject to review under the California
Environmental Quality Act.
ATTACHMENTS:
Attachment A - May 20, 2014 P&S Staff Report (PDF)
Attachment B - May 20, 2014 P&S Draft Minutes (PDF)
Department Head: Molly Stump, City Attorney
Page 9
CITY OF PALO ALTO OFFICE OF THE CITY ATTORNEY
May 20, 2014
The Honorable City Council
Attention: Policy & Services Committee
Palo Alto, California
Discussion and Possible Recommendation to Council Regarding
Potential November 2014 Charter Amendments Related to Term
Limits, Number of Council Seats, Council Compensation,
Beginning/End of Council Terms, Annual Reorganization Meeting and
Other Matters
On May 12, 2014, the Council considered a variety of possible Charter changes to Council
Member seats and governance matters, as reflected in the attached staff report. (Attachment
A.) Council voted unanimously to refer these items to the Policy and Services Committee for
consideration and recommendation of any or all of the items listed in the report, except that
Council excluded from Committee consideration election by district and direct election of
Mayor. With these exclusions, the specific topics before the Committee are:
1. Term limits
2. Number of Council seats
3. Council compensation
4. Timing of the transition between outgoing and incoming Council Members
When several of these issues were considered by Policy & Services in 2013, staff prepared a
short survey of neighboring cities. We are expanding and updating the survey and will provide it
in advance of the meeting on May 20th or at places. The expanded survey will include
population, charter city status, number of council seats, term limits, and council transition date
for cities in Santa Clara and San Mateo Counties.
In addition, for the Committee’s consideration, attached is a chart prepared by the Los Angeles
Times using data assembled by the California Controller in 2011, showing council compensation
in all California cities. (Attachment B.) While the chart is readable and places information in a
helpful comparative context, it is somewhat dated. If the Committee wishes to pursue this area
further, it may be helpful to gather current data on compensation.
ATTACHMENTS:
Attachment A - 5-12-14 Staff Report (PDF)
Attachment B - Chart Prepared by Los Angeles Times Re Council Salaries (PDF)
Page 2
Department Head: Molly Stump, City Attorney
Page 3
California city council compensation scorecard - Spreadsheets - Los Angeles Times
http://spreadsheets.latimes.com/city-council-salaries/[5/14/2014 8:38:46 AM]
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California city council compensation scorecard
Unlike the notorious Bell, most California cities fall well within state guidelines for council
salaries. But such add-ons as health benefits and pay for sitting on special boards push some
council members’ compensation above the line.
Cities without a charter have maximum council salaries set by a formula based on their 1984
population with a 5% annual increase. A Times analysis of 2009 data found 25 of those cities
paid more than the limit. The number grew to 90 with health benefits included. The chart be-
low lists the combined salary and all other benefits for all cities and indicates whether they are
legally bound by the guideline.
City Guideline is binding State guideline Average total pay Comparison
Vernon $12,191 $156,605
Bell $16,255 $98,793
Indian Wells $12,191 $56,215
Los Angeles $40,636 $179,815
Rancho Mirage $12,191 $43,289
Inglewood $24,382 $75,361
Palm Desert $20,318 $58,581
Palm Springs $16,255 $46,522
San Francisco $40,636 $116,167
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California city council compensation scorecard - Spreadsheets - Los Angeles Times
http://spreadsheets.latimes.com/city-council-salaries/[5/14/2014 8:38:46 AM]
Industry $12,191 $32,238
San Jose $40,636 $107,407
Laguna Hills $12,191 $31,798
Bell Gardens $16,255 $40,632
Desert Hot Springs $12,191 $29,941
La Quinta $16,255 $39,016
Santa Barbara $24,382 $54,932
Maywood $12,191 $27,197
Hawaiian Gardens $12,191 $27,049
Menlo Park $12,191 $26,799
Santa Fe Springs $12,191 $26,717
Rosemead $20,318 $44,209
Santa Paula $12,191 $26,510
Commerce $12,191 $26,293
Compton $24,382 $52,454
Colma $12,191 $26,209
Oakland $40,636 $86,714
San Diego $40,636 $86,579
Suisun City $12,191 $25,827
Chula Vista $32,509 $68,796
Sacramento $40,636 $85,829
Atwater $12,191 $24,894
Sand City $12,191 $24,820
Walnut $12,191 $24,592
South El Monte $12,191 $24,538
Chino $24,382 $49,031
California city council compensation scorecard - Spreadsheets - Los Angeles Times
http://spreadsheets.latimes.com/city-council-salaries/[5/14/2014 8:38:46 AM]
Napa $24,382 $47,700
Irwindale $12,191 $23,841
Azusa $16,255 $31,567
Lakewood *$24,382 $46,802
Emeryville $12,191 $23,372
Clearlake $12,191 $22,980
Costa Mesa $24,382 $44,355
Fresno $40,636 $73,856
Santee $20,318 $36,738
Vista $24,382 $43,877
Orange $24,382 $43,836
Belmont $12,191 $21,918
Baldwin Park *$24,382 $42,347
Union City $24,382 $42,113
Solana Beach $12,191 $20,761
Benicia $12,191 $20,705
Colton $20,318 $34,159
South Lake Tahoe $12,191 $20,268
Carson $24,382 $40,355
Mendota $12,191 $20,068
Escondido $24,382 $39,856
Burlingame $12,191 $19,804
Thousand Oaks $24,382 $39,553
Simi Valley $24,382 $39,357
Port Hueneme $12,191 $19,646
Scotts Valley $12,191 $19,565
California city council compensation scorecard - Spreadsheets - Los Angeles Times
http://spreadsheets.latimes.com/city-council-salaries/[5/14/2014 8:38:46 AM]
Glendale $32,509 $51,874
Paso Robles $12,191 $19,326
Cerritos $20,318 $31,912
Calexico $16,255 $25,229
Berkeley $24,382 $37,018
Beverly Hills $16,255 $24,590
Carlsbad $24,382 $36,818
Cudahy $12,191 $18,362
La Mirada $20,318 $29,942
Orange Cove $12,191 $17,800
Arroyo Grande $12,191 $17,611
St. Helena $12,191 $17,486
American Canyon $12,191 $17,483
Riverside $40,636 $58,173
San Fernando $12,191 $17,422
Monterey $12,191 $17,402
Coronado $12,191 $17,337
Hermosa Beach $12,191 $17,309
Yucca Valley $12,191 $17,255
Rialto $24,382 $34,181
Santa Cruz $20,318 $27,767
Upland $24,382 $33,318
Moreno Valley $32,509 $44,361
Morro Bay $12,191 $16,558
Fort Bragg $12,191 $16,491
Redondo Beach $20,318 $27,482
California city council compensation scorecard - Spreadsheets - Los Angeles Times
http://spreadsheets.latimes.com/city-council-salaries/[5/14/2014 8:38:46 AM]
Aliso Viejo $16,255 $21,868
San Gabriel $16,255 $21,804
Huntington Park $20,318 $27,231
San Ramon $20,318 $27,217
Gardena $20,318 $27,060
Brisbane $12,191 $16,179
Signal Hill $12,191 $16,134
Westlake Village $12,191 $16,062
Cypress $16,255 $21,338
Daly City $24,382 $31,943
Turlock $20,318 $26,610
Loma Linda $12,191 $15,901
Sunnyvale $24,382 $31,769
Santa Clarita $32,509 $42,321
Milpitas $20,318 $26,363
San Pablo $12,191 $15,677
Brawley $12,191 $15,617
Ripon $12,191 $15,615
Tustin $24,382 $31,023
Crescent City $12,191 $15,400
Coachella $16,255 $20,461
Paramount $20,318 $25,562
Wildomar $12,191 $15,308
Highland $20,318 $25,461
Pacifica $16,255 $20,303
Malibu $12,191 $15,120
California city council compensation scorecard - Spreadsheets - Los Angeles Times
http://spreadsheets.latimes.com/city-council-salaries/[5/14/2014 8:38:46 AM]
Mammoth Lakes $12,191 $15,075
West Hollywood $16,255 $19,967
Menifee $20,318 $24,950
San Dimas $16,255 $19,959
Norco $12,191 $14,913
Lemon Grove $12,191 $14,906
Alhambra $24,382 $29,747
Irvine $32,509 $39,553
Diamond Bar $20,318 $24,667
Healdsburg $12,191 $14,775
Ceres $16,255 $19,690
Millbrae $12,191 $14,752
Ridgecrest $12,191 $14,746
Hercules $12,191 $14,591
San Marcos $24,382 $29,129
Ontario $32,509 $38,476
Buena Park $24,382 $28,511
Duarte $12,191 $14,150
Santa Monica $24,382 $28,272
Parlier $12,191 $14,118
El Segundo $12,191 $14,070
Brea $16,255 $18,682
Perris $20,318 $23,327
Vallejo $24,382 $27,921
Cathedral City $20,318 $23,211
National City $20,318 $23,098
California city council compensation scorecard - Spreadsheets - Los Angeles Times
http://spreadsheets.latimes.com/city-council-salaries/[5/14/2014 8:38:46 AM]
La Puente $16,255 $18,425
San Luis Obispo $16,255 $18,418
Richmond $24,382 $27,620
Oroville $12,191 $13,767
El Monte $24,382 $27,479
El Cajon $24,382 $27,453
Blythe $12,191 $13,626
Adelanto $12,191 $13,593
Cloverdale $12,191 $13,584
Camarillo $20,318 $22,523
Antioch $24,382 $26,953
Arcata $12,191 $13,456
Santa Maria $24,382 $26,881
Oceanside $32,509 $35,730
Pismo Beach $12,191 $13,354
Encinitas $20,318 $22,154
West Covina $24,382 $26,550
California City $12,191 $13,200
Pleasanton $20,318 $21,968
Pleasant Hill $12,191 $13,133
Foster City $12,191 $13,122
Lodi $20,318 $21,648
Hesperia $24,382 $25,533
Banning $12,191 $12,701
Long Beach $40,636 $42,100
Culver City $16,255 $16,701
California city council compensation scorecard - Spreadsheets - Los Angeles Times
http://spreadsheets.latimes.com/city-council-salaries/[5/14/2014 8:38:46 AM]
Ojai $12,191 $12,506
Hayward $32,509 $33,224
Oxnard $32,509 $33,052
Clovis $24,382 $24,727
Lawndale $12,191 $12,348
Chino Hills $24,382 $24,554
El Centro $16,255 $16,250
Concord $24,382 $24,304
San Carlos $12,191 $12,135
Imperial Beach $12,191 $12,066
Lakeport $12,191 $12,060
Temecula $24,382 $24,027
Sanger $12,191 $11,881
Manhattan Beach $16,255 $15,810
Carpinteria $12,191 $11,817
Big Bear Lake $12,191 $11,748
Bellflower $24,382 $23,468
Newport Beach $24,382 $23,353
Albany $12,191 $11,622
Gonzales $12,191 $11,541
Pasadena $32,509 $30,593
La Verne $12,191 $11,466
Fontana $32,509 $30,553
Los Banos $16,255 $15,224
Placerville $12,191 $11,298
Indio $24,382 $22,370
California city council compensation scorecard - Spreadsheets - Los Angeles Times
http://spreadsheets.latimes.com/city-council-salaries/[5/14/2014 8:38:46 AM]
Montebello $20,318 $18,626
Coalinga $12,191 $11,143
Montclair $16,255 $14,835
Norwalk $24,382 $22,242
San Rafael $20,318 $18,484
La Mesa $20,318 $18,312
Lake Elsinore $20,318 $18,299
Martinez $16,255 $14,594
San Juan Capistrano $16,255 $14,397
Galt $12,191 $10,763
Salinas $32,509 $28,609
Yorba Linda $20,318 $17,862
Los Altos Hills $12,191 $10,676
Fullerton $24,382 $21,224
Cupertino $20,318 $17,669
Rancho Cucamonga $32,509 $28,109
Monrovia $16,255 $13,990
Pico Rivera $20,318 $17,485
Barstow $12,191 $10,389
San Jacinto $16,255 $13,791
San Leandro $24,382 $20,584
Arcadia $20,318 $17,084
Artesia $12,191 $10,237
Hillsborough $12,191 $10,183
Mission Viejo $24,382 $20,293
Los Altos $12,191 $10,115
California city council compensation scorecard - Spreadsheets - Los Angeles Times
http://spreadsheets.latimes.com/city-council-salaries/[5/14/2014 8:38:46 AM]
Moorpark $16,255 $13,430
Anaheim $40,636 $33,522
Redding $24,382 $19,946
Yountville $12,191 $9,947
Lincoln $16,255 $13,210
Westminster $24,382 $19,706
Auburn $12,191 $9,843
Calabasas $12,191 $9,792
Folsom $20,318 $16,213
Ukiah $12,191 $9,648
Hawthorne $24,382 $19,263
Poway $20,318 $15,998
Goleta $12,191 $9,582
Monterey Park $20,318 $15,927
Sebastopol $12,191 $9,537
Huntington Beach $32,509 $25,422
Hollister $16,255 $12,683
Fairfield $24,382 $19,004
San Bruno $16,255 $12,656
Rancho Santa Margarita $16,255 $12,647
Redwood City $24,382 $18,916
Murrieta $24,382 $18,885
Palo Alto $20,318 $15,601
Eureka $12,191 $9,293
Susanville $12,191 $9,289
Hemet $24,382 $18,492
California city council compensation scorecard - Spreadsheets - Los Angeles Times
http://spreadsheets.latimes.com/city-council-salaries/[5/14/2014 8:38:46 AM]
Gilroy $20,318 $15,393
Willits $12,191 $9,221
Pinole $12,191 $9,197
Chico $24,382 $18,355
Jackson $12,191 $9,147
Glendora $20,318 $15,205
Dublin $16,255 $12,133
Grand Terrace $12,191 $9,006
West Sacramento $16,255 $11,879
Selma $12,191 $8,827
Brentwood $20,318 $14,658
Windsor $12,191 $8,780
Burbank $24,382 $17,171
South San Francisco $20,318 $14,274
Stanton $16,255 $10,963
Yuba City $20,318 $13,702
Rohnert Park $16,255 $10,948
South Gate $24,382 $16,410
Morgan Hill $16,255 $10,934
Visalia $24,382 $16,343
Apple Valley $20,318 $13,474
Davis $20,318 $13,376
Wasco $12,191 $7,981
Elk Grove $24,382 $15,900
Vacaville $24,382 $15,869
Santa Ana $40,636 $26,438
California city council compensation scorecard - Spreadsheets - Los Angeles Times
http://spreadsheets.latimes.com/city-council-salaries/[5/14/2014 8:38:46 AM]
Firebaugh $12,191 $7,888
Campbell $16,255 $10,481
Los Gatos $12,191 $7,609
Laguna Beach $12,191 $7,487
Redlands $20,318 $12,414
Buellton $12,191 $7,358
Walnut Creek $20,318 $12,249
Sausalito $12,191 $7,327
Corona $32,509 $19,500
Seal Beach $12,191 $7,290
Live Oak $12,191 $7,279
Dana Point $16,255 $9,669
Beaumont $12,191 $7,182
Bishop $12,191 $7,162
Soledad $12,191 $7,116
Modesto $32,509 $18,812
Lompoc $16,255 $9,400
San Mateo $24,382 $14,054
Madera $20,318 $11,660
Citrus Heights $24,382 $13,923
Fremont $32,509 $18,527
Capitola $12,191 $6,781
Alturas $12,191 $6,600
Bakersfield $40,636 $21,932
Rancho Cordova $20,318 $10,933
Alameda $24,382 $13,008
California city council compensation scorecard - Spreadsheets - Los Angeles Times
http://spreadsheets.latimes.com/city-council-salaries/[5/14/2014 8:38:46 AM]
Shasta Lake $12,191 $6,434
Livermore $24,382 $12,833
Lynwood $20,318 $10,693
Santa Rosa $32,509 $17,023
Garden Grove $32,509 $16,955
Laguna Niguel $20,318 $10,502
Claremont $16,255 $8,399
Mountain View $24,382 $12,541
Woodland $20,318 $10,377
Lancaster $24,382 $12,427
Temple City $16,255 $8,275
Twentynine Palms $12,191 $6,139
Rancho Palos Verdes $16,255 $8,172
Marina $12,191 $6,113
McFarland $12,191 $6,100
Newark $16,255 $8,133
Sonoma $12,191 $6,080
Stockton $40,636 $20,080
Danville $16,255 $7,981
Torrance $24,382 $11,863
Pomona $32,509 $15,634
San Bernardino $32,509 $15,582
Palmdale $32,509 $15,546
Agoura Hills $12,191 $5,809
San Joaquin $12,191 $5,750
Placentia $20,318 $9,565
California city council compensation scorecard - Spreadsheets - Los Angeles Times
http://spreadsheets.latimes.com/city-council-salaries/[5/14/2014 8:38:46 AM]
Fountain Valley $20,318 $9,434
Pacific Grove $12,191 $5,643
La Canada Flintridge $12,191 $5,612
Pittsburg $20,318 $9,222
Red Bluff $12,191 $5,419
Novato $20,318 $8,897
El Cerrito $12,191 $5,318
Lemoore $12,191 $5,252
Victorville $24,382 $10,408
Imperial $12,191 $5,160
Calimesa $12,191 $5,100
Cotati $12,191 $5,047
Fairfax $12,191 $5,040
Santa Clara $24,382 $10,048
Los Alamitos $12,191 $4,924
Petaluma $20,318 $8,131
Lomita $12,191 $4,860
Rocklin $20,318 $8,080
Greenfield $12,191 $4,774
Lake Forest $24,382 $9,433
Paradise $12,191 $4,680
Manteca $20,318 $7,697
Loomis $12,191 $4,594
Whittier $24,382 $9,173
Clayton $12,191 $4,563
Hanford $20,318 $7,491
California city council compensation scorecard - Spreadsheets - Los Angeles Times
http://spreadsheets.latimes.com/city-council-salaries/[5/14/2014 8:38:46 AM]
East Palo Alto $12,191 $4,440
Dinuba $12,191 $4,409
Seaside $12,191 $4,374
Fortuna $12,191 $4,314
La Palma $12,191 $4,314
Mill Valley $12,191 $4,200
Grover Beach $12,191 $4,176
Avalon $12,191 $4,175
La Habra $20,318 $6,892
Holtville $12,191 $4,130
Avenal $12,191 $4,030
Dixon $12,191 $4,008
Marysville $12,191 $3,942
Ventura $24,382 $7,785
Covina $16,255 $5,174
Delano $20,318 $6,452
Riverbank $12,191 $3,845
Gustine $12,191 $3,770
Yreka $12,191 $3,738
Del Mar $12,191 $3,720
Arvin $12,191 $3,669
Truckee $12,191 $3,663
Tracy $24,382 $7,275
Oakdale $12,191 $3,628
Canyon Lake $12,191 $3,600
Colusa $12,191 $3,600
California city council compensation scorecard - Spreadsheets - Los Angeles Times
http://spreadsheets.latimes.com/city-council-salaries/[5/14/2014 8:38:46 AM]
Escalon $12,191 $3,600
Half Moon Bay $12,191 $3,600
Livingston $12,191 $3,600
Portola $12,191 $3,600
South Pasadena $12,191 $3,600
Taft $12,191 $3,600
Tehachapi $12,191 $3,600
Yucaipa $20,318 $6,000
Atascadero $12,191 $3,599
Biggs $12,191 $3,592
Corning $12,191 $3,552
Lathrop $12,191 $3,438
Corte Madera $12,191 $3,374
Grass Valley $12,191 $3,300
Kerman $12,191 $3,295
Sonora $12,191 $3,225
Chowchilla $12,191 $3,180
San Clemente $20,318 $5,135
Huron $12,191 $3,065
Larkspur $12,191 $3,049
Saratoga $12,191 $3,006
Kingsburg $12,191 $3,000
Sierra Madre $12,191 $2,999
Gridley $12,191 $2,988
Hughson $12,191 $2,900
Westmorland $12,191 $2,880
California city council compensation scorecard - Spreadsheets - Los Angeles Times
http://spreadsheets.latimes.com/city-council-salaries/[5/14/2014 8:38:46 AM]
Oakley $16,255 $3,738
Watsonville $20,318 $4,668
Patterson $12,191 $2,640
Calistoga $12,191 $2,400
Tulare $20,318 $3,981
Ione $12,191 $2,208
Rio Vista $12,191 $2,192
Weed $12,191 $2,112
Fowler $12,191 $2,074
Guadalupe $12,191 $2,058
Reedley $12,191 $2,000
Winters $12,191 $1,980
Carmel-by-the-Sea $12,191 $1,920
Dos Palos $12,191 $1,800
Monte Sereno $12,191 $1,800
Waterford $12,191 $1,800
Williams $12,191 $1,760
Del Rey Oaks $12,191 $1,728
Willows $12,191 $1,680
Mount Shasta $12,191 $1,530
Maricopa $12,191 $1,372
San Anselmo $12,191 $1,329
Colfax $12,191 $1,320
Calipatria $12,191 $1,260
Plymouth $12,191 $1,200
Wheatland $12,191 $1,200
California city council compensation scorecard - Spreadsheets - Los Angeles Times
http://spreadsheets.latimes.com/city-council-salaries/[5/14/2014 8:38:46 AM]
King City $12,191 $978
Point Arena $12,191 $930
Newman $12,191 $850
Montague $12,191 $780
Roseville $24,382 $1,536
Downey $24,382 $1,357
Anderson $12,191 $600
Trinidad $12,191 $600
Exeter $12,191 $529
Loyalton $12,191 $515
Porterville $20,318 $818
Merced $24,382 $840
Solvang $12,191 $300
Fillmore $12,191 $30
Amador $12,191 $0
Atherton $12,191 $0
Belvedere $12,191 $0
Blue Lake $12,191 $0
Bradbury $12,191 $0
Corcoran $12,191 $0
Dorris $12,191 $0
Dunsmuir $12,191 $0
Etna $12,191 $0
Farmersville $12,191 $0
Ferndale $12,191 $0
Hidden Hills $12,191 $0
California city council compensation scorecard - Spreadsheets - Los Angeles Times
http://spreadsheets.latimes.com/city-council-salaries/[5/14/2014 8:38:46 AM]
Isleton $12,191 $0
La Habra Heights $12,191 $0
Lafayette $12,191 $0
Laguna Woods $12,191 $0
Lindsay $12,191 $0
Moraga $12,191 $0
Needles $12,191 $0
Nevada City $12,191 $0
Orinda $12,191 $0
Orland $12,191 $0
Palos Verdes Estates $12,191 $0
Piedmont $12,191 $0
Portola Valley $12,191 $0
Rio Dell $12,191 $0
Rolling Hills $12,191 $0
Rolling Hills Estates $12,191 $0
Ross $12,191 $0
San Juan Bautista $12,191 $0
San Marino $12,191 $0
Shafter $12,191 $0
Sutter Creek $12,191 $0
Tehama $12,191 $0
Tiburon $12,191 $0
Villa Park $12,191 $0
Woodlake $12,191 $0
Woodside $12,191 $0
California city council compensation scorecard - Spreadsheets - Los Angeles Times
http://spreadsheets.latimes.com/city-council-salaries/[5/14/2014 8:38:46 AM]
Readers: What’s your take? Share it here.
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Angels City N/A N/A
Fort Jones N/A N/A
Tulelake N/A N/A
Note: Salaries and benefits of fulltime mayors were excluded from the analysis because they are not subject to the state guideline.
Footnote: The total compensation above can be too high if a city erroneously reported health benefits twice, both as salary and benefits. These cities say their
actual average compensation is lower for that reason: Baldwin Park ($14,400); Lakewood ($11,778).
Sources: California State Controller, California Department of Finance
Credits: Maloy Moore, Sandra Poindexter, Catherine Saillant, Abby Sewell, Doug Smith, Ben Welsh
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Norma C. Majano Aronne
The hope in this world, is that any person or individual who make a conscious decision to
represent City , County of State , Country is motivated by what differences he/she can bring to
that specific region.Efforts with positives outcomes that in turn, benefit the people they represent.
. In our Country USA, that has been forgotten long ago. City Of Bell is not unique in that , there
are many others Counties with the same problem individuals looking after themselves, and not
the well being of their fallow citizen.
norma Aronne
Reply · Like · April 21 at 3:38pm
Mark Montes · Lawndale High School
La city council $179,815 no wonder the the city is broke, cut that salary by a third and then we
will have start on making a dent?
Reply · Like · · December 30, 2012 at 11:21am1
POLICY AND SERVICES COMMITTEE
DRAFT MINUTES
Page 1 of 26
Special Meeting
Tuesday, May 20, 2014
Chairperson Price called the meeting to order at 6:05 P.M. in the Council
Conference Room, 250 Hamilton Avenue, Palo Alto, California.
Present: Klein, Price (Chair), Schmid, Scharff
Absent:
Oral Communications
None
Agenda Items
1. Discussion and Possible Recommendation to Council Regarding
Potential November 2014 Charter Amendments Related to Term
Limits, Number of Council Seats, Council Compensation,
Beginning/End of Council Terms, Annual Reorganization Meeting and
Other Matters.
Chair Price recommended Policy and Services Committee (Committee)
Members discuss each topic separately. She requested comments regarding
deferral of any topics.
Council Member Klein inquired about reasons for deferring a topic.
Chair Price did not believe the Committee had sufficient information to
discuss Council compensation. Perhaps that topic could be deferred to a
later time.
Council Member Klein disagreed.
Council Member Scharff would support deferring discussion of compensation.
Council Member Schmid preferred to discuss compensation.
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Chair Price agreed to discuss compensation.
Molly Stump, City Attorney, reported Staff included basic information
regarding surrounding cities in Santa Clara and San Mateo Counties.
Roger Smith encouraged the Committee to reduce or eliminate Council
liaison duties. He wanted the Committee to reduce Council seats from nine
to seven in order to save money, time, and resources.
Council Member Klein opposed term limits in that they did not accomplish
anything.
MOTION: Council Member Klein moved, seconded by Council Member
Scharff to recommend to the City Council a measure on the November 2014
ballot to change the Charter Council term limits to a maximum of three
terms.
Council Member Scharff felt three terms was a good compromise between
two terms and unlimited terms. Term limits were a disadvantage to Council
Members being appointed to regional boards and commissions, which
reduced Palo Alto's influence. The County of Santa Clara (County) moved to
three terms.
Council Member Schmid opposed term limits and a reduction in the number
of Council seats. Council Members gained knowledge and sophistication with
service on the Council. In the National Citizen Survey, local governments
received higher scores for trust and confidence in government than State or
Federal government. The Council could measure its success by the level of
confidence and trust citizens placed in the Council. Extending term limits
and reducing the number of Council seats placed barriers between the
Council and residents.
Chair Price would support the Motion. Three terms was a compromise.
Serving as an elected official required knowledge, tenacity, and time. She
agreed with comments regarding representation of the City on regional
boards and commissions.
Council Member Klein clarified that a limit of three terms would be effective
immediately upon passage of a measure such that those currently in office
would be eligible to serve three terms.
Chair Price asked if Council Member Klein was amending the Motion or
providing a separate topic for discussion.
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Council Member Schmid recalled the City Attorney commented on that issue
of effective date in the Staff Report.
Ms. Stump indicated the Committee should consider an effective date as a
policy question.
Council Member Scharff suggested the Committee discuss an effective date
as a separate topic.
Council Member Klein amended his Motion to include "effective immediately
upon passage."
Council Member Scharff would not accept the amendment.
Council Member Klein requested Council Member Scharff propose an
effective date.
Council Member Scharff wanted term limits to be effective for the 2018
election. He did not believe term limits could apply to the 2016 election.
Council Member Klein advised that term limits could be effective in 2016.
Council Member Scharff preferred 2018.
MOTION PASSED: 3-1 Schmid no
MOTION: Council Member Klein moved, seconded by Council Member XXXX
to recommend the City Council make the three-year term limit Charter
change effective upon passage in November 2014.
MOTION FAILED DUE TO LACK OF A SECOND
MOTION: Council Member Scharff moved, seconded by Chair Price to
recommend the City Council make the three-year term limit effective
January 1, 2018.
Council Member Scharff stated an effective date of 2018 would allow citizens
to consider changes before moving forward in 2018.
Chair Price added that 2018 provided a transition period.
Council Member Klein indicated the change would affect very few people.
Colleagues wanted Council Members to be more effective in serving on
regional boards and commissions; however, colleagues also wanted to defer
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that effectiveness for another four years. He could not identify a benefit
from an effective date of 2018. The greater good would be served by
allowing representatives to serve on regional boards for a longer period of
time.
Council Member Scharff remarked that if the effective date was 2014, then
Council Member Klein could run for office again in 2014.
Council Member Klein could not run for office in 2014 under the current
Charter.
Council Member Scharff clarified that if Council Member Klein was elected
and if an effective date of 2014 was approved, then Council Member Klein
would be seated. If an effective date of 2014 was not approved, then
Council Member Klein would not be seated.
Council Member Klein requested comment from the City Attorney.
Ms. Stump reported the Charter did not speak to campaigning. It spoke to
eligibility for office. Currently Council Member Klein was not eligible to take
office in 2015. If term limits were extended to three in November 2014 and
Council Member Klein was elected, then he would be eligible to serve in
2015.
Council Member Schmid inquired whether the City Clerk could accept an
application.
Ms. Stump would review the Charter and provide a response.
Council Member Klein suggested the City Attorney not bother as he would
not be running for reelection.
Ms. Stump would determine an answer if Committee Members requested.
MOTION FAILED: 2-2 Klein, Schmid no
Ms. Stump would provide an answer when the item was presented to the
Council.
Council Member Scharff could identify both pros and cons for reducing the
number of Council seats. Most cities seated either five or seven council
members. Liaison, committee, and regional board responsibilities would be
more difficult to cover with only seven seats. On balance, seven Council
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Members could be the best option. Seven seats would be more efficient;
however, efficiency was not always the goal of government.
Council Member Schmid had no interest in excluding the possibility of nine
members. The goal was a diverse Council. More Council Members created
more relationships with citizens. Citizens tolerated inefficiencies in
government for the benefits a government provided.
MOTION: Council Member Klein moved, seconded by Chair Price to
recommend the City Council put a ballot measure on the November 2014
election to reduce Council seats from nine to seven members.
Council Member Klein concurred with comments by Council Members Scharff
and Schmid. He supported a reduction to seven members, because of the
lack of candidates. Many people did not want to serve on the Council,
because of the many responsibilities of Council Members and the lack of time
to campaign. Fewer Council Members would not reduce the length of
meetings. Because the City had its own utilities, Council Members served on
additional regional boards. He preferred an effective date of 2014.
Chair Price concurred with comments regarding efficiency, demands on
Staff, and more focused discussion. She expressed concern about decreased
representation of citizens. Fewer seats would place pressure on south and
west Palo Alto to field candidates. The issue of attracting candidates applied
to nine as well as seven seats. The requirements for and responsibilities of
Council Members reduced the field of candidates.
Council Member Schmid reported traditionally Council and Palo Alto Unified
School District (PAUSD) elections fielded approximately 2.5 candidates per
open seat. The number of candidates had decreased over the past few
elections. Reducing the number of seats was not a way to control
democracy, but rather a way to take advantage of community resources.
MOTION PASSED: 3-1 Schmid no
MOTION: Council Member Klein moved, seconded by Chair Price to
recommend to the Council that the reduction of Council candidates take
effect immediately following the 2014 Election.
SUBSTITUTE MOTION: Council Member Scharff moved, seconded by
Council Member XXX to defer discussion of this item to Council.
MOTION FAILED DUE TO LACK OF A SECOND
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Council Member Klein could not identify a reason to delay implementation of
fewer seats.
Chair Price felt changing the number of seats would be logical in the current
cycle.
Council Member Schmid questioned whether the City Clerk would accept
applications for five seats when the number of vacant seats was unknown.
The issue could completely change how residents cast their votes. It would
be extremely confusing for residents.
James Keene, City Manager, assumed three candidates receiving the highest
number of votes would be seated.
Donna Grider, City Clerk, reported the uncertainty of whether these
measures would pass could affect advertising for Council seats. She
assumed she would advertise for five seats in the upcoming election.
Council Member Schmid added that the County Registrar would provide an
voter pamphlet indicating five seats.
Ms. Grider would provide a Resolution to the Council in June 2014 for five
seats.
Council Member Scharff assumed the three candidates receiving the highest
number of votes would be seated if the measure passed, and the five
candidates receiving the highest number of votes would be seated if the
measure did not pass.
Molly Stump, City Attorney, wanted to look more closely at the ballot
question asked of the voters. She would research the issue to confirm that
was a lawful choice.
Mr. Keene commented that the inverse would be more problematic.
Ms. Stump reported that could not be done.
Chair Price remarked that the Committee could consider an effective date of
2016.
Ms. Grider noted no terms expired in 2016.
Ms. Stump explained that an effective date of 2016 would result in five open
seats for the 2014-2018 cycle and two open seats for the 2016-2020 cycle.
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MOTION PASSED: 3-1 Scharff no
Council Member Scharff inquired whether the Charter allowed Council
Member compensation to exceed a specific amount.
Ms. Stump reported the Charter incorporated the provisions of State law.
State law provided a limit on the amount and annual amount of increase.
State law allowed for slight increases in Council compensation without
changing the Charter. There could be a simple Ordinance change within the
procedures of State law. If the Committee wanted to exceed the procedures
or set up a different procedure, then a Charter Amendment was required.
Council Member Scharff inquired about the amounts allowed by State law.
Ms. Stump noted the Council's current salary was $600 per month as
established by Ordinance in 2001. State law procedure allowed a 5 percent
increase annually. If that increase was not implemented, it could be added
but not cumulatively. Subject to confirmation, the Council could increase
compensation by $390 through an Ordinance.
Council Member Scharff indicated Council Member compensation could
increase to approximately $1,000. The Mayor and Vice Mayor received
slightly more compensation.
Ms. Stump advised that compensation for the Mayor and Vice Mayor fell
under a different set of procedures. There was a procedural limitation on
when changes could become effective. If the Council adopted an Ordinance
increasing compensation in the summer or fall of 2014, it could not take
effect until new terms began in January 2015.
Council Member Scharff asked if increasing compensation to more than
$1,000 was the only reason for utilizing a Charter amendment.
Ms. Stump replied that or creating a different process for establishing
compensation.
Council Member Schmid noted the Los Angeles Times material listed State
guidelines and average total pay. The chart included benefits as well as
salary. In that chart, Palo Alto compensation including benefits was well
below State guidelines. The chart was different from the numbers Ms.
Stump provided. Ms. Stump considered salaries only and a cap for salaries.
The chart indicated the cap for Palo Alto was $20,300.
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Ms. Stump provided the information to frame the Committee's conversation.
Benefits was a complicated area. The $390 amount was salary only. State
law created an initial cap based on population size of the city. The starting
number was different for each city, because of different population sizes.
She had not reviewed a procedure to change benefits as the Council had not
expressed an interest.
Council Member Schmid remarked that the State guideline number was
substantially higher.
Ms. Stump advised that Council Members received less salary than the
general law allowed for a city of Palo Alto's size.
MOTION: Council Member Schmid moved, seconded by Council Member
XXXX to recommend the City Council consider raising monthly salaries to
$1,000 per month subject to limits of State law.
MOTION FAILED DUE TO THE LACK OF A SECOND
MOTION: Council Member Scharff moved, seconded by Chair Price not to
amend the Charter for compensation, but to have the matter discussed at a
future Policy and Services Committee meeting. Defer discussion of raising
Council compensation within State guidelines to a later meeting. June 17.
Committee will discuss whether to increase Council Member salary and a
process to do that.
Council Member Scharff commented that the Committee did not need to act
quickly absent a Charter amendment. Any salary increase should not apply
to current Council Members.
Chair Price felt the Committee needed additional information regarding
salary and benefits and time to contemplate issues. An increase in
compensation was appropriate given compensation amounts for other cities.
Council Member Klein favored placing a Charter amendment on the
November ballot. He proposed a Charter amendment to double salaries only
if the number of Council seats was reduced from nine to seven. The
compensation savings from fewer Council Members would roughly equal the
total amount of a salary increase. Any substantial change should be made
by voters. Conditioning a compensation increase upon the reduction in seats
made it clear that citizens could expect more from seven Council Members.
Council Member Schmid reviewed pertinent data from the Los Angeles Times
chart. Excluding cities over 500,000 and under 5,000 and all Bay Area
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cities, there were 27 cities substantially higher than Palo Alto in salary and 8
below. The per hour rate of compensation was low for Council Members.
Council Member Scharff noted many cities paid $12,000 to $33,000. The
article stated most cities fell within State guidelines. He asked if only
Charter cities paid more than $12,000.
Ms. Stump explained those cities were probably much larger cities.
Council Member Scharff asked if State guidelines affected that.
Council Member Schmid indicated State guidelines changed with population.
Ms. Stump clarified that State guidelines contained a graduated schedule
based on population. Staff believed the Los Angeles Times chart included
some valuation for benefits.
Council Member Scharff hesitated to rely on the Los Angeles Times data as
he was unsure of its accuracy.
Ms. Stump added that the chart contained information from 2011. A
number of councils had made adjustments, especially in the benefits area, in
recent years.
Council Member Scharff inquired whether Committee Members preferred a
Charter amendment or an Ordinance. The Motion would allow the
Committee to obtain more data for review. If Committee Members
supported Council compensation of more than $1,000 per month, then they
should vote for a Charter amendment. If they supported Council
compensation of less than $1,000, then there was no need for a Charter
amendment. Council Member Klein's proposal would require a Charter
Amendment to double the compensation amount.
Ms. Stump recalled Council Member Klein's desire for voters to decide
Council compensation. If compensation remained within the State policy
cap, a ballot measure was not needed. Whether to submit the matter to an
election was a policy decision.
Mr. Keene believed the issue was who made the decision rather than the
dollar amount.
Council Member Klein calculated a reduction of two Council Members would
provide a savings of $14,400 in salary and $20,000 in benefits. He
proposed dividing the savings amount among the seven remaining Council
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Members as a compensation increase. If the Council did not set an effective
date in 2014, then a compensation increase could not be effective until after
the next election.
Ms. Stump agreed that a compensation increase could become effective in
January 2017, after the election of 2016. She inquired whether Council
Member Klein's comment of "doubling salaries" referred to the salary that a
particular Council Member received or the total amount the City expended
on Council Member salaries.
Council Member Klein replied total compensation.
Ms. Stump asked if he meant the total aggregate compensation for nine
Council Members doubled and then spread across seven Council Members.
Council Member Klein indicated his proposal was not on the table.
Council Member Schmid remarked that the Motion did not contain a time for
Staff to return with additional information.
Council Member Scharff was agreeable to stating a time for Staff to provide
information to the Committee. He inquired when Staff could have
information.
Mr. Keene asked if the Committee wanted salary or total compensation.
Salary information was easier to compile.
Council Member Scharff responded salary.
Mr. Keene noted compensation included other factors such as pension.
Chair Price inquired whether Committee Members would accept base salary
as sufficient for a comparison.
Council Member Schmid was interested in salary.
Council Member Scharff reiterated his question to Staff.
Mr. Keene could survey cities in the Bay Area or cities comparable to Palo
Alto.
Chair Price asked where Staff's work would fit in the work plan.
Mr. Keene indicated Staff could return in June 2014.
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Chair Price suggested June 3 or 17, 2014.
Mr. Keene answered June 17.
Council Member Klein felt it would be a mistake for the Council to increase
its compensation regardless of whether State law allowed it. Compensation
was a sensitive issue, and voters should be consulted.
Chair Price suggested a hybrid process of including people not on the Council
in the discussion of information before the Committee. Including outside
people addressed Council Member Klein's comments.
Council Member Schmid inquired whether the Motion included a Charter
amendment election.
Council Member Scharff replied no.
MOTION PASSED: 3-1 Klein no
MOTION: Council Member Klein moved, seconded by Council Member
Schmid to recommend the City Council direct the City Attorney to draft a
Charter change to commence Council terms on the first regular meeting
after receipt of the official vote count from the ROV. The Mayor and Vice
Mayor would also be elected at that meeting.
Council Member Klein reported the procedure suggested in the Motion was
commonly used. The City did not need a long period between the election
and beginning of terms. The procedure would eliminate concerns regarding
the possibility of an emergency occurring over December holidays. The
process was well documented and well used.
Council Member Schmid advised that only two cities in San Mateo and Santa
Clara Counties waited until January to begin terms. The year-end meeting
would be a great opening for new Council Members to take office.
Reorganization could also occur in December so that Staff was prepared to
move forward in the new year.
Ms. Stump advised that some cities' procedures stated terms began at the
first regular meeting rather than a specific day of the week. That allowed for
the possibility of a regular meeting not being scheduled for that day of the
week. If for some reason a quorum was not present or a meeting was not
held on that date, then terms could begin the following week.
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Council Member Klein inquired whether Ms. Stump was setting up the same
type of ambiguity the Committee wished to avoid.
Ms. Stump did not believe so.
Council Member Klein asked if a quorum included newly elected Council
Members.
Ms. Stump explained the outgoing Council convened the meeting and
certified election results. At that point, incoming members began their
terms.
Council Member Klein wished to ensure outgoing members could not remain
in office by deliberately not attending the meeting.
Donna Grider, City Clerk, reported the problem was receiving the canvass
from the County and then having time to submit it to the Council. She
would not always be able to submit the canvass prior to the first meeting in
December. She suggested the Motion state the first meeting following the
City Clerk's receipt of election results.
Council Member Klein wanted to know why the Motion could not state the
first Monday after receipt of the results.
Ms. Stump indicated the Motion could state that.
Ms. Grider clarified that most Charters did not state the first Monday. Most
Charters stated terms commenced the first regular meeting following
certification of election results.
Council Member Klein agreed to the Motion stating the first regular meeting.
Ms. Stump presumed the Committee would want to change the election of
the Mayor and Vice Mayor from the first meeting in January.
Council Member Klein stated all three points were part of the Motion.
Chair Price inquired whether new members would take office at the meeting
wherein election results were certified or at the following meeting.
Ms. Stump responded at the certifying meeting.
Council Member Scharff understood the issue was the possibility of an
emergency occurring while the Council was on Winter Break. The City Clerk
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could swear incoming members at any time. There had not been an issue
since the Charter was founded.
Council Member Klein reported San Francisquito Creek came close to
flooding on December 30 or 31, while the Council was on break.
Council Member Scharff suggested the Clerk could have sworn in new
Council Members.
Council Member Klein believed additional problems were the unreasonably
long period between the election and beginning of term and the Council's
inability to act until a Mayor and Vice Mayor were elected and Committee
Members appointed.
Council Member Schmid noted the Council held a total of four meetings in
January and February over the past three or four years.
Council Member Scharff did not feel moving the date would be
advantageous. A new Mayor would be fresh from the Winter Break if elected
in January. New mayors were not focused in November and December when
issues arose.
Chair Price was not in favor of the Motion. Many of the issues the Council
was working on would extend through November and December. A new
Mayor in December would not have the knowledge to deal with those issues.
Council Member Klein disagreed. Chair Price seemed to prefer lame ducks
vote on issues rather than newly elected members.
Chair Price remarked that lame ducks had knowledge, experience, and
understanding of issues. A Mayor elected in December would have no time
to become knowledgeable about issues. The slow start in January and
February could be addressed by scheduling more meetings.
Council Member Scharff did not wish to lose the tradition and ceremony of
the January reorganization meeting. Many people were out of town during
December and would not be able to attend a reorganization meeting.
MOTION FAILED: 2-2 Price, Scharff no
Council Member Schmid noted the City Attorney included a technical topic
for consideration.
Ms. Stump reported the policy question concerned placing on the ballot a
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single measure containing all Charter amendments or dividing them or
grouping them.
Council Member Schmid inquired about an amendment regarding the order
of candidate names.
Ms. Grider recommended changing the City's lottery for determining the
order of names on the ballot to utilize the Secretary of State's lottery.
Council Member Klein recalled attending a Special Meeting of the Council
solely to hold the lottery.
Ms. Grider indicated the City often received a deadline extension to hold the
lottery. The Council did hold Special Meetings only to draw names. In
addition, Palo Alto's lottery delayed the Registrar of Voters' preparation of
the ballot.
MOTION: Council Member Scharff moved, seconded by Council Member
Schmid to recommend the City Council amend the Charter to utilize the
Secretary of State's lottery for order of candidate names.
MOTION PASSED: 4-0
MOTION: Council Member Klein moved, seconded by Council Member
Schmid to recommend any Charter changes be listed on the ballot as
separate items. With the ballot order amendment contained in each
measure.
Ms. Grider reported the Registrar of Voters estimated the cost for a single
measure would be $66,000. In addition, Ms. Grider estimated the City's
election costs at $10,000.
Council Member Scharff asked if the Committee had approved two Charter
amendments.
Ms. Grider advised the Committee approved three Charter amendments:
number of seats, term limits, and ballot order.
Council Member Scharff felt the ballot order amendment did not justify a
cost of $75,000.
Ms. Stump would confirm that grouping one amendment with two different
amendments caused no harm.
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Council Member Scharff felt it was important to separate the two
amendments. By separating amendments, the public decided whether to
enact them. If amendments were bundled together, then the Council
seemed to influence the decision.
Council Member Schmid inquired about a rule regarding single topics.
Ms. Stump reported the single subject rule did not apply to Charter
amendments.
Cash Alaee, Management Analyst, asked when the Council would hear the
Committee's recommendations.
Ms. Grider responded June 16, 2014.
Mr. Alaee stated the Council compensation item had to be complete by
August 7 in order to place it on the ballot.
Council Member Schmid indicated it would not need a vote.
Ms. Stump clarified that Council compensation could be changed by
Ordinance.
MOTION PASSED: 4-0
The Committee took a break from 7:35-7:46 P.M.
2. Discussion and Possible Recommendation or Action Regarding the
Proposed Santa Clara County Transportation Project Sales Tax
Initiative.
Council Member Schmid inquired about the goal or intention of the
discussion.
Chair Price reported the Silicon Valley Leadership Group (SVLG) was
preparing a potential ballot measure for 2014 and making contact with
councils and stakeholders. The City of Palo Alto needed to provide
preliminary comments. The Council began the conversation in its meeting
held the prior evening. The purpose of the discussion was to draft
preliminary comments to SVLG's proposal. The Policy and Services
Committee (Committee) should address issues and concerns based on the
Council's conversation and direct Staff to draft a letter to SVLG. The City
Manager could sign the letter with the understanding that the Council would
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take action on the item at the first meeting in June. The Committee and
Council had limited time to provide comments.
Council Member Schmid asked if the Committee should summarize Council
comments from the previous evening or consider all potential issues.
Chair Price understood the Committee would review all potential issues as
well as concerns raised in the Council discussion. Implementing a process to
respond quickly to proposed ballot language was a separate issue.
Richard Hackmann, Management Analyst, advised that SVLG originally
considered a ballot measure for 2016; however, it moved the date to 2014
based on polling results. A measure had to be completed by August 8, 2014
to be placed on the ballot. The City's letter should clearly state it contained
preliminary positions subject to Council review. The Council clearly reached
consensus that Caltrain funding should be a significant element of the
transportation tax measure. He viewed the Committee's policy decision as
determining a process for reviewing and responding to draft ballot language
while the Council was on break. He provided the Committee with the Staff
Report; Rail Guiding Principles; the City's April 28, 2014 letter to the
Peninsula Corridor Joint Powers Board regarding the Caltrain electrification
Environmental Impact Report (EIR); language from the 2004 San Mateo
County transportation tax initiative; and figures for ridership, population,
and sales tax revenue. The City's April 28 letter could be utilized to identify
key concerns. He could provide information relative to a pro rata formula for
determining the City's share of the $3.5 billion sales tax revenue. The key
question was whether to advocate for specific projects to improve
transportation or capacity. One approach could be to request funds from the
tax measure support lengthening platforms and trains in order to increase
capacity. Another approach could be to request funds support relief of traffic
congestion caused by Caltrain operations. There were many angles for
consideration and each had its own pros and cons.
Council Member Schmid recalled Mr. Guardino stated that grade separation
per item would cost $100-150 million. He asked if Staff had a cost estimate
for grade separations from the City's consultant.
Mr. Hackmann reported the estimated cost of submerging a roadway
beneath the railway could be $150 million. Construction costs appeared to
be approximately $75 million. There would be noticeable and significant
property taking in addition to street closures. The character of surrounding
neighborhoods would take on a concrete and industrial feel. The preliminary
cost estimate for submerging the railway in an open trench between San
Antonio Road and Page Mill Road was $350 million. This scenario would
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provide the most safety for pedestrians and cyclists. Because of nearby
creeks, some portions of the Rail Corridor would require a 2 percent grade
for trenching. Freight trains could travel along a 2 percent grade.
Chair Price wanted to focus on key elements for the letter.
Council Member Klein felt the Council coalesced around three topics:
increased support for Caltrain, protections that funding would be dedicated
to Caltrain within north Santa Clara County, and grade crossings. Putting
too many details in the letter would be a mistake.
Chair Price inquired whether dedicated funding would include an expenditure
plan.
Council Member Klein clarified that funds could not be transferred without
various approvals. That type of detail was not necessary in the letter. Mr.
Guardino's statement that he would consider any plan developed by the City
was a ploy. Mr. Guardino knew the City was not in a position to develop a
particular plan at the current time. The initial letter should contain those
three points expressed in general terms along with a request to review
additional proposals from SVLG. The Committee needed a process similar to
the Rail Committee's process in order to respond nimbly to proposals. The
Council could authorize a small group of Council Members who would be
present in July to review and respond to proposals. His concerns were
quickly sending a letter to SVLG and creating a process for review and
comment on SVLG proposals.
Mr. Hackmann agreed that proposing specific grade separations was not in
the City's best interests. He provided cost estimates as context for the
amount of funds needed to make improvements.
Council Member Schmid concurred with Council Member Klein's three points,
but would express them differently. Caltrain was critical for both north and
south connections for the foreseeable future. SVLG viewed Caltrain as a
subsidiary of the Bay Area Rapid Transit (BART). The cost to Caltrain for not
tunneling was grade crossings, and the cost estimates for grade crossings
were high. The share of funding given to Caltrain had to include grade
crossings as a part of increased Caltrain capacity. Increased capacity could
not occur without a means for traffic to move. The letter should address
Caltrain support, grade crossing, and a request for explicit commitments.
Council Member Scharff agreed the letter should be high level and take a
regional approach. The letter should stress that Caltrain had capacity issues
and connecting it to BART would exacerbate capacity issues. Therefore, the
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regional system would not work without improvements to Caltrain. The
letter could recommend SVLG increase the sales tax initiative by an
additional 1/8 or 1/4 cent. An additional 1/8 cent increase could move
Caltrain funding closer to $1 billion.
Mr. Hackmann calculated an 1/8 cent increase would generate $1.75 billion
over 30 years.
Council Member Scharff recommended the letter suggest SVLG propose a
3/8 cent sales tax increase with 1/8 cent of that 3/8 cent dedicated to
Caltrain. That amount could fund significant Caltrain improvements.
Chair Price suggested extending the sales tax from 30 years to 35 years as
an option for funding Caltrain. The letter needed to emphasize the issues of
operation, service, and capacity and provide a few examples. Longer
platforms, level boarding, increasing length of trains, and accelerating
purchase of cars could be achieved more quickly than Phase 2 of BART. She
agreed with comments regarding connectivity of Caltrain and BART. The
success of BART in the Peninsula would be dependent on the effective
linkage with Caltrain. Grade separations would be an important
improvement; however, capacity improvements were needed sooner than
grade separations could be constructed. If Mountain View agreed, a
coalition of Palo Alto and Mountain View would be powerful in terms of
ridership and amount of sales tax generated. The letter should provide a
context and the importance of improvements to make both Caltrain and
BART work better. She inquired whether the letter should reference ballot
language that the Committee felt had merit. She recommended the letter
be sent to Carl Guardino with copies to Nuria Fernandez of Santa Clara
Valley Transportation Authority (VTA) and the head of the Board of
Supervisors. She could provide cost estimates from a transportation planner
if the Committee wished.
Mr. Hackmann believed successful letters in the past asked for specific
items. The letter currently reiterated the importance of Caltrain connecting
with BART and creating a circular transportation network.
Chair Price indicated increased support for Caltrain should have some ranges
or a significant statement such as "given the lack of funding for critical
capital improvements to Caltrain over the last couple of decades, the costs
of significant improvements ... ."
Council Member Schmid inquired whether someone suggested Caltrain and
BART should receive the same amount of money.
DRAFT MINUTES
Page 19 of 26
Policy and Services Committee Regular/Special Meeting
Draft Minutes 5/20/14
Mr. Hackmann reported Mr. Guardino stated 1/7 of funding or $500 million.
Council Member Scharff advised that an increase in the sales tax would
provide $1.75 billion to Caltrain.
Mr. Hackmann would incorporate the sales tax increase into the letter.
Council Member Klein commented that his three points were specific
requests. The letter asked for guarantees that money would be spent in
Santa Clara County, for specific details of grade separations, and for a pool
of money to be set aside.
Council Member Schmid remarked that a concrete suggestion to increase
funding for Caltrain could result in a relatively equal share of funding for
Caltrain and BART.
Chair Price asked if the Committee was interested in extending the time
period from 30 to 35 years.
Council Member Scharff believed the letter should ask for an increased sales
tax or an extension of years, but not both.
Chair Price requested Staff calculate the amount of funds generated by an
extension of the time period for an additional five years.
Mr. Hackmann questioned whether SVLG polled about extending the time
period.
Chair Price did not think SVLG polled for 35 years. She was simply
suggesting that as an alternative.
Council Member Scharff suggested there could be a specific reason for bond
terms being 30 years.
Mr. Hackmann explained that capital projects assumed the life of a facility
was 30 years.
Council Member Klein would not favor asking for 35 years.
Council Member Scharff wanted to send the letter as soon as possible and
appoint a subcommittee of two Council Members to work with Mr.
Hackmann.
DRAFT MINUTES
Page 20 of 26
Policy and Services Committee Regular/Special Meeting
Draft Minutes 5/20/14
Chair Price felt the letter should contain examples of service and operational
enhancements.
Council Member Scharff agreed as long as they were short.
Council Member Schmid suggested examples include grade crossings or
associations with performance.
Chair Price clarified that examples would pertain to operations, service, and
capacity. Grade separations would be part of that discussion.
Council Member Klein agreed to a sentence including examples without
providing any detail whatsoever. The City could not overcome the expertise
issue.
Chair Price indicated the letter had to have a few details. She asked if the
letter should reference the San Mateo ballot language as an example.
Council Member Scharff felt that was premature. He inquired whether Chair
Price meant a reference to the ballot or the actual language.
Chair Price suggested the letter refer to the San Mateo measure as an
example of ballot language that was balanced, included an expenditure plan,
and identified specific projects.
Mr. Hackmann reported the request for an additional 1/8 cent sales tax
dedicated to Caltrain could be phrased two ways. "SVLG proposed giving
$500 million of the $3.5 billion to Caltrain. We think that should be used for
platform extensions and train lengthening."
Council Member Klein disagreed and recommended "for various ways of
expanding capacity such as ... ."
Chair Price suggested "expanding capacity, service and operations such as
... ."
Mr. Hackmann suggested "$500 million for capacity issues and an additional
$1.75 billion based on 1/8 cent sales tax for grade separations."
Council Member Scharff suggested "for Caltrain improvements."
Council Member Klein added "for Caltrain improvements and grade
separations."
DRAFT MINUTES
Page 21 of 26
Policy and Services Committee Regular/Special Meeting
Draft Minutes 5/20/14
Council Member Schmid indicated the letter had to be explicit, because Mr.
Guardino avoided the phrase.
Chair Price did not want to be too prescriptive. Some flexibility was needed
for designers and engineers to accomplish the job.
Mr. Hackmann suggested "$500 million for capacity improvements and an
1/8 cent additional tax for general Caltrain system improvements."
Council Member Klein added "and grade crossings."
Mr. Hackmann corrected it to "including grade separations."
Council Member Scharff suggested Chair Price and Council Member Klein
work with Mr. Hackmann to approve the language.
Council Member Schmid believed mentioning the $500 million amount
implied the City would accept $500 million. He suggested "a 1/8 increase in
funding is an appropriate way of achieving an equitable distribution of funds
between Caltrain and BART."
Mr. Hackmann reiterated, "we propose a 1/8 cent additional sales tax for
general Caltrain system improvements including grade separations creating
equitability towards ... ."
Council Member Scharff suggested the letter just state "increase Caltrain
capacity."
Mr. Hackmann inquired whether that language allowed SVLG to state they
would give Caltrain $750 million or $1 billion and the extra $4 billion to
BART.
Council Member Scharff recommended "the 1/8 cent increase is solely
committed to Caltrain." With respect to Council Member Klein's three
principles, increase support for Caltrain was covered by the 1/8 cent sales
tax increase; protect the money was covered by "solely for Caltrain;" and
grade crossings were specifically mentioned.
Council Member Schmid noted $1.7 billion plus $500 million totaled $2.2
billion, which was more than the amount proposed for BART.
Council Member Scharff recommended SVLG take the $500 million and apply
it to expressways or whatever.
DRAFT MINUTES
Page 22 of 26
Policy and Services Committee Regular/Special Meeting
Draft Minutes 5/20/14
Chair Price inquired about the total amount of funds dedicated to Caltrain
according to the letter.
Mr. Hackmann replied $1.75 billion. An additional $500 million to use for
other projects could appeal to SVLG.
Council Member Klein clarified that the letter requested one-third of the total
amount of funds raised.
Chair Price inquired whether the letter should explicitly state a response was
expected and that the Council would continue its discussion.
Mr. Hackmann suggested "following your presentation, which we
appreciated, reflecting the needs of the County, the City of Palo Alto,
recognizing that the environment is ripe for a tax measure, proposes not
only moving forward with a 1/4 cent sales tax but increasing it to a 3/8 cent
sales tax with one-third of the increased revenue going towards Caltrain
improvements."
Council Member Klein corrected the language to "Caltrain improvements
including grade separations." Grade separations were improvements to the
general infrastructure that enabled Caltrain.
Mr. Hackmann always asked at the end of a letter for a written response.
Caltrain improvements would occur only in Santa Clara County.
Council Member Klein disagreed. SVLG did not state what the $500 million
would fund. It could purchase a new railroad car which would travel in San
Mateo County as well.
Chair Price agreed that some improvements were physically located within
Santa Clara County and some would benefit the overall system.
Mr. Hackmann did not know if the language of a county tax measure
determined where improvements would occur.
Council Member Scharff instructed Mr. Hackmann not to include that detail.
Chair Price advised that the Committee could discuss at a later time
maintenance funds to maintain Caltrain at a high level of performance.
Council Member Klein inquired whether the Committee would request the
Council resurrect the Rail Committee.
DRAFT MINUTES
Page 23 of 26
Policy and Services Committee Regular/Special Meeting
Draft Minutes 5/20/14
Council Member Scharff did not want to call it the Rail Committee. The
Committee should have authority to send letters.
Council Member Klein wanted the Council to delegate authority similar to
that given to the Rail Committee.
Chair Price reported the goal was to send the letter ASAP and return to the
Council on June 2, 2014, for approval of a final letter.
Council Member Scharff recommended sending a final letter at the current
time.
Chair Price indicated the original concept was to provide the City's
preliminary positions to SVLG, seek Council input and approval, and to send
the letter in the following few days, much like the letter regarding
Dumbarton.
Council Member Klein noted the City Manager sent the letter on his own
authority.
Mr. Hackmann asked if the Committee had authority to send the letter.
Cash Alaee, Management Analyst, explained that the City Manager had
authority to send a letter to anybody within legislative (INAUDIBLE) as
approved by the Council.
Chair Price expressed concern that acting beyond the Council's generally
described direction would result in severe criticism. A two-step process
would still provide cogent points to the SVLG right away.
Council Member Scharff suggested the City Manager send the letter. He
disagreed with the letter containing references to preliminary positions. The
next step would be requesting authority from the Council.
Chair Price wanted to ensure Mr. Guardino understood the Council would
take final action on June 2, 2014.
Council Member Scharff recommended the letter state the Committee
reviewed the proposal and made recommendations to the City Manager.
The City Manager concurred with recommendations. The Council would
review the letter on June 2.
Council Member Klein opposed sending a second letter. He questioned
whether it would agree with the first letter or provide additional changes.
DRAFT MINUTES
Page 24 of 26
Policy and Services Committee Regular/Special Meeting
Draft Minutes 5/20/14
Council Member Scharff asked how the letter should be handled.
Council Member Klein explained a letter from the City Manager was not
considered the final position of the City.
Council Member Schmid reported the Council did not discuss the additional
sales tax increase of 1/8 cent.
Mr. Hackmann advised that would a significant policy shift and could have
implications regarding the City's ability to increase sales tax in the future
due to the 2 percent cap. The Council should discuss the sales tax issue.
Council Member Klein recommended sending the letter on June 3 after the
Council reviewed it.
Council Member Scharff inquired whether the letter should be placed on the
Council's Consent Calendar.
Council Member Klein answered yes.
Mr. Hackmann asked if he should inform Mr. Guardino that the letter was in
process.
Council Member Scharff replied yes.
Chair Price questioned whether Mr. Hackmann would defend the decision of
the Committee if the letter was placed on the Consent Calendar.
Mr. Hackmann considered proposing additional funding for Caltrain, but felt
it was not appropriate for him to do so.
Chair Price would contact Mr. Hackmann to refine the letter.
Mr. Hackmann would request the City Manager contact Mr. Guardino the
following day.
MOTION: Council Member Scharff moved, seconded by Council Member
Klein to place the item on the City Council's Consent Calendar for June 2,
2014.
MOTION PASSED: 4-0
DRAFT MINUTES
Page 25 of 26
Policy and Services Committee Regular/Special Meeting
Draft Minutes 5/20/14
Chair Price inquired whether the Committee should provide direction as to
how it would advise the Council.
Council Member Klein reported the Committee could direct Staff to draft a
memorandum to the Council suggesting the Council delegate authority to
the Policy and Services Committee to move quickly in response to proposed
ballot language.
Chair Price noted the memorandum would be included in the Staff Report for
June 2, 2014.
Mr. Hackmann indicated the Council would approve a letter and a process.
He asked if the memorandum should mention the possibility of not having a
quorum during July 2014.
Chair Price suggested the memorandum reference the vacation period. The
Council expected a fair amount of activity.
Mr. Hackmann inquired about three Committee Members availability during
July.
Council Member Schmid requested an Agenda Item for the June 17 meeting
to address that issue.
Chair Price remarked that ballot language could be proposed that warranted
a response between June 2 and 17.
Council Member Scharff suggested the Committee appoint a subcommittee if
it could not reach a quorum.
Council Member Klein believed the Committee needed Council authority.
Chair Price wanted to address the quorum issue in the Staff Report.
Mr. Alaee assumed the Mayor or Council would sign the letter as the Council
would review the draft letter on June 2.
Chair Price concurred.
Future Meetings and Agendas
Chair Price inquired whether the placeholder meeting for June 3, 2014 was
necessary.
DRAFT MINUTES
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Policy and Services Committee Regular/Special Meeting
Draft Minutes 5/20/14
Cash Alaee, Management Analyst, replied no.
Chair Price announced the next Policy and Services Committee (Committee)
meeting was scheduled for June 17, 2014.
Mr. Alaee reported a joint meeting of the Architectural Review Board (ARB)
was scheduled for June 19. The item on June 17 was tentative. He was
unsure whether the Infrastructure Committee wanted to update the
Committee regarding implications of online travel companies.
Molly Stump, City Attorney, indicated the Infrastructure Committee
recommended targeted adjustments to Transient Occupancy Tax (TOT)
language to ensure that the TOT was applied to online travel companies.
Chair Price asked if Airbnb was included.
Ms. Stump advised that adjustments included the tax aspects of Airbnb,
Vacation Rental By Owner (VRBO), and other types of internet companies.
It did not include substantial policy questions regarding land use issues
which would be scheduled for the Committee in 2015. Another aspect to tax
issues was general enforcement. That could be presented to the Committee
at a later time.
Council Member Klein left the meeting at 8:53 P.M.
Chair Price failed to allow public comment for Agenda Item Number 2. Mr.
Roland Lebrun submitted a speaker card, but had left the meeting.
Mr. Hackmann reviewed Mr. Lebrun's communication regarding San Jose's
preliminary recommendations for spending bond funds.
Mr. Alaee reported Agenda Items for the June 17 meeting were a Smoking
Ordinance, federal and state legislation, and a joint session with the ARB.
Chair Price added Council compensation to the Agenda for June 17.
Adjournment: The meeting was adjourned at 8:56 P.M.
CITY OF PALO ALTO OFFICE OF THE CITY ATTORNEY
June 16, 2014
The Honorable City Council
Palo Alto, California
Adoption of a Resolution Calling a Special Election for November 4,
2014 to Place a Ballot Measure before the Voters to Increase the City’s
Transient Occupancy Tax (TOT) by Two Percentage Points and Update
the TOT Ordinance to Ensure Equal Treatment of Traditional and
Online Bookings: Discussion of Polling Regarding Proposed TOT and
Utility User Tax (UUT) Ballot Measures
Recommendation
Adopt the attached Resolution calling a special election to increase the City’s transient
occupancy tax (TOT) by two percentage points and update the TOT ordinance to confirm equal
treatment of traditional and online bookings (Attachment A).
Summary of Infrastructure Committee and Prior Council Direction
At the March 3, 2014 Palo Alto City Council meeting, Council reviewed the Infrastructure
Committee’s draft infrastructure project funding proposal and the Committee’s
recommendation to move forward with a three percentage point transient occupancy tax (TOT)
increase. At the March 3, 2014 meeting, the Council supported a reduction in the proposed TOT
increase from three percentage points to two percentage points and sent the matter back for
further analysis by the Committee. On May 20, the Committee further discussed the TOT
measure and also recommended that the measure include updates to capture the emerging
predominance of online travel bookings.
Discussion
Proposed TOT Increase and Limited Updates to TOT Ordinance
The proposed ordinance (Exhibit A to Resolution Calling Election) contains a two percent rate
increase as directed by the City Council on March 3.
In addition to the rate increase, since a TOT measure will be on the ballot, Council may also
consider whether to make minor clarifications in the ordinance to clarify that TOT applies fully
to online hotel brokers (such as Expedia and Priceline) and “sharing economy” businesses such
as Vacation Rentals By Owner (VRBO) and Airbnb. Whether to do so is a policy matter for the
Council.
The Online Travel Companies (“OTCs”) generally operate under one of two business models:
the agency model or the merchant model. In the “agency” model, the OTC acts as a hotel’s
Page 2
agent, and recovers their service charge directly from the hotel or sometimes the customer.
Under this model, the hotel collects and remits TOT based on a percentage of the full amount
of money the customer is charged for the room rental (the “retail” rate). In general, the
customer pays TOT on the full room rate and this tax is collected and remitted by the hotel.
Under the “merchant” model, the OTC contracts with a hotel, agreeing to pay the hotel a
negotiated “wholesale” rate for a room or block of rooms. The OTC then allows customers to
book rooms using its website, acting as the merchant of record in the transaction with the
customer. The OTC may charge whatever it wants for room reservations and the hotel is
obligated to honor reservations made through the OTC’s website. Under this model, the OTC
collects and remits TOT pursuant to its contract with the hotel, but it only remits TOT based on
the “wholesale” rate it pays the hotel, not the higher “retail” rate it charges the consumer.
Most TOT ordinances were drafted long before the online “merchant” model became popular.
OTCs have begun collecting and remitting TOT based solely on the “wholesale” rent they pay
the hotels, rather than the full “retail” rent based by the consumer. Several cities have sued to
collect rent on the full “retail” rate but courts have denied most of these claims. The courts’
decisions have turned on the particular language of the local TOT ordinance at issue. In light of
this unsuccessful litigation, it is likely that many cities will begin updating their ordinances to
clarify that TOT should be collected on the rent actually paid by the customer, rather than the
rent collected by the hotel.
In order to ensure that the City’s TOT ordinance applies to the “merchant” model currently in
practice, the Council may want to consider a discrete amendment to the definition of “rent” in
the City’s TOT. In addition, Council may want to clarify the application to online travel
companies including Priceline, Airbnb and other similar websites or brokers. We have prepared
a new section titled “Third Party Rental Transactions” to address this issue. The proposed
ordinance includes some other incidental clean up language to reinforce these issues. We have
included the modernization language in the draft ballot question, below. If Council does not
wish to put these minor language changes before the public at this time, the ballot language
should end after the phrase “two percentage points.”
Note these TOT changes are unrelated to whether AirBnb use is permitted under the City’s
Zoning Code. The Planning Department intends to conduct a separate policy discussion next
year on this broader land use issue. These changes should not be viewed as implicitly
permitting hotel use that does not comply with the Zoning Code.
Ballot Question
Below is draft ballot language the City Attorney’s Office has prepared for review:
“To provide funding that cannot be taken away by the State for general fund infrastructure and
City services such as earthquake safe fire stations; pedestrian and bike improvements including
safe routes to school, streets, sidewalks, paths, and bridges; and maintaining parks and
Page 3
recreation facilities, shall the City increase the hotel/motel tax by two percentage points and
update language to confirm equal treatment of traditional and online bookings?”
This language reflects the Council’s direction to increase the TOT to 14 percent. It also includes
the Infrastructure Committee’s recommendation to include language clarifying application to
online travel bookings.
Polling
Fairbank, Maslin, Maullin, Metz & Associates (FM3) has completed polling on the proposed TOT
and Utility User Tax (UUT) measures, as Council authorized. (See Attachment B) The polling
confirms continuing support for the two percentage point TOT increase. 69% of those polled
responded in favor of the TOT increase with 25% saying they would definitely vote yes, 35%
saying they would probably vote yes, and 9% saying they were undecided but lean toward
voting yes. 19% of those polled were opposed to the TOT increase with 8% saying they would
definitely vote no, 10% saying they would probably vote no, and 2% saying they were
undecided but lean toward voting no. 12% were undecided.
The polling also addressed the UUT modernization measure recently endorsed by Council.
Polling on the UUT ballot measure language shows 47% in favor, 29% opposed, and 24%
undecided. FM3 has indicated that based on similar ballot measures it is realistic to anticipate
that undecided voters will split approximately 50/50 in favor versus against the measure (and
may even lean slightly more towards a yes vote). The result of this is that once the 24% of
undecided voters makes a decision it is likely that the percentage of those in favor of the
measure will exceed 50%. FM3 feels that the high percentage of undecided voters is most likely
due to the complexity in the UUT modernization ballot measure language when compared to
ballot measure language such as that for the TOT, which is more straightforward.
Resource Impact
A 2 percentage point increase to the TOT would amount to an annual $2.2 million revenue
increase. If the measure is approved and the implementation date is January 1, 2015 then the
City would earn an estimated $1.1 million for the 6 month period in FY 2015. The estimated
cost of the ballot measure including translation into several languages for the November 2014
election is approximately $75,000.
Environmental Review
This is not a project under the California Environmental Quality Act.
ATTACHMENTS:
Attachment A: RESO Placing TOT Measure on Ballot (PDF)
Attachment B - FM3 Polling Results Overview_6-11-2014 (PDF)
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Department Head: Molly Stump, City Attorney
Page 5
NOT YET APPROVED
Resolution No ________
Resolution of the Council of the City of Palo Alto Calling a Special Election for
November 4, 2014 for Submittal to the Qualified Electors of the City a Measure
Related To The City’s Transient Occupancy Tax
R E C I T A L S
A. Pursuant to Section 2.33.020 of title 2 of the Palo Alto Municipal Code, the City
currently levies a Transient Occupancy Tax.
B. The City Council desires to amend the Palo Alto Municipal Code to increase the
transient occupancy tax (commonly called the “hotel tax”) which is currently charged on
persons who occupy hotel or motel rooms in the City for 30 days or less, from the current 12%
to 14% and to make other revisions to the method of calculating the tax in order to help
maintain basic City services.
C. The City depends on the hotel tax to fund basic City services.
D. A proposed ordinance attached hereto and incorporated herein by reference as
Attachment “A” (the “Ordinance”) would implement these proposed revisions to the tax.
E. By its Resolution No. 9421 the City Council called a general municipal election for
November 4, 2014 (“Election”).
F. Pursuant to Government Code Section 53724 and Election Code Section 9222,
the City Council desires to submit the Ordinance to the voters of the City.
The City Council of the City of Palo Alto RESOLVES as follows:
SECTION 1. Findings. The City Council finds and determines that each of the findings
set forth above are true and correct.
SECTION 2. General Tax Election. The City Council proposes to impose the general
tax set forth in the Ordinance and to present this proposal to the voters on November 4,
2014.
SECTION 3. Measure. Pursuant to Elections Code Section 9222, the City Council
hereby submits the Ordinance to the voters at the Election and orders the following question to
be submitted to the voters at the Election:
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ATTACHMENT A
NOT YET APPROVED
To provide funding that cannot be taken away by the State
for general fund infrastructure and City services such as
earthquake safe fire stations; pedestrian and bike
improvements including safe routes to school, streets,
sidewalks, paths, and bridges; and maintaining parks and
recreation facilities, shall the City increase the hotel/motel
tax by two percent and update language to confirm equal
treatment of traditional and online bookings?
YES
NO
This question requires the approval of a majority of those casting votes.
SECTION 4. Adoption of Measure. The measure to be submitted to the voters is
attached to this Resolution as Exhibit A and incorporated herein by this reference.
SECTION 5. Notice of Election. Notice of the time and place of holding the election is
hereby given, and the City Clerk is authorized, instructed and directed to give further or
additional notice of the election, in time, form and manner as required by law.
SECTION 6. Impartial Analysis. Pursuant to California Elections Code Section 9280,
the City Council hereby directs the City Clerk to transmit a copy of the measure to the City
Attorney. The City Attorney shall prepare an impartial analysis of the measure, not to exceed
500 words in length, showing the effect of the measure on the existing law and the operation of
the measure, and transmit such impartial analysis to the City Clerk on or before August 19,
2014.
SECTION 7. Ballot Arguments. Pursuant to Elections Code Section 9286 et. seq.,
August 12, 2014 at 5:30 p.m. shall be the deadline for submission of arguments in favor of, and
arguments against, any local measures on the ballot. If more than one argument for and/or
against is received, the priorities established by Elections Code Section 9287 shall control.
SECTION 8. Rebuttal Arguments. The provisions of Elections Code Section 9285 shall
control the submission of any rebuttal arguments. The deadline for filing rebuttal arguments
shall be August 19, 2014 at 5:30 p.m.
SECTION 9. Consolidation Request. The Council of the City of Palo Alto requests the
governing body of any other political subdivision, or any officers otherwise authorized by law,
to partially or completely consolidate such elections and the City Council consents to such
consolidation. The Council requests the Board of Supervisors of Santa Clara County to include
on the ballots and sample ballots, all qualified measures submitted by the City Council to be
ratified by the qualified electors of the City of Palo Alto. The Council acknowledges that the
election will be held and conducted according to procedures in the Elections Code, including
Section 10418.
SECTION 10. Request for County Services. Pursuant to Section 10002 of the California
Elections Code, the Council of the City of Palo Alto hereby requests the Board of Supervisors of
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NOT YET APPROVED
Santa Clara County to permit the Registrar of Voters to render services to the City of Palo Alto
relating to the conduct of Palo Alto’s General Municipal and Special Elections which are called
to be held on Tuesday, November 4, 2014. The services shall be of the type normally performed
by the Registrar of Voters in assisting the clerks of municipalities in the conduct of elections
including, but not limited to, checking registrations, mailing ballots, hiring election officers and
arranging for polling places, receiving absentee voter ballot applications, mailing and receiving
absent voter ballots and opening and counting same, providing and distributing election
supplies, and furnishing voting machines.
SECTION 11. Transmittal of Resolution. The City Clerk is hereby directed to submit
forthwith a certified copy of this resolution to the Santa Clara County Board of Supervisors and
to the Registrar of Voters.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSENTIONS:
ATTEST: APPROVED:
_____________________________ ______________________________
City Clerk Mayor
______________________________
APPROVED AS TO FORM: City Manager
_____________________________ ______________________________
Senior Assistant City Attorney Director of Administrative Services
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NOT YET APPROVED
Exhibit A
Ordinance No. _____
Ordinance of the Council of the City of Palo Alto Amending Chapter 2.33 of Title
2 of the Palo Alto Municipal Code Relating to the Transient Occupancy Tax
The People of the City of Palo Alto do ordain as follows:
SECTION 1. Chapter 2.33 of the Palo Alto Municipal Code is hereby amended by
amending Chapter 2.33 as follows:
Chapter 2.33
TRANSIENT OCCUPANCY TAX
2.33.010 Definitions.
2.33.020 Tax imposed.
2.33.030 Exemptions.
2.33.040 Operator's duties.
2.33.050 Registration.
2.33.060 Reporting and remitting.
2.33.070 Penalties.
2.33.080 Failure to collect and report tax; determination of tax by supervisor of revenue
collections.
2.33.090 Appeal.
2.33.100 Records.
2.33.110 Refunds.
2.33.120 Actions to collect.
2.33.130 Violations; misdemeanor.
2.33.140 Third party rental transactions.
2.33.010 Definitions.
Except where the context otherwise requires, the definitions given in this section govern the
construction of this chapter:
(a) "Person" means any individual, firm, partnership, joint venture, association, social club,
fraternal organization, joint stock company, corporation, estate, trust, business trust, receiver,
trustee, syndicate, or any other group or combination acting as a unit.
(b) "Hotel" means any structure, or any portion of any structure, in the City of Palo Alto
which is occupied or intended or designed for occupancy by transients for dwelling, lodging or
sleeping purposes, and includes any hotel, inn, tourist home or house, motel, studio hotel,
bachelor hotel, lodging house, morning house, apartment, house, dormitory, public or private
club, mobilehome or house trailer at a fixed location, or other similar structure or portion
thereof, even if such structure is also used for other purposes, including residential purposes.
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NOT YET APPROVED
(c) "Occupancy" means the use or possession, or the right to the use or possession, of any
room or rooms or portion thereof in any hotel for dwelling, lodging or sleeping purposes.
(d) "Transient" means any person who exercises occupancy or is entitled to occupancy by
reason of concession, permit, right of access, license or other agreement for a period of thirty
consecutive days or less, counting portions of calendar days as full days. Any such person so
occupying space in a hotel shall be deemed to be a transient until the period of thirty days has
expired unless there is an agreement in writing between the operator and the occupant
providing for a longer period of occupancy.
(e) "Rent" means the total consideration charged paid by a transient, including, without
limitation, transaction service fees and any unrefunded advance reservation or other rental
deposit, whether or not received, for the occupancy of space in a hotel, whether or not
received by the hotel operator, including, without limitation, transaction service fees and any
unrefunded advance reservation or other rental deposit. For purposes of this definition, rent
shall be valued in money, whether it is to be received in money, goods, labor or otherwise,
including all receipts, cash, credits and property and services of any kind or nature, without any
deduction therefrom whatsoever.
(f) "Operator" means the person who is the proprietor of the hotel, whether in the capacity
of owner, lessee, sublessee, mortgagee in possession, licensee, or any other capacity. Where
the operator performs his or her functions through a managing agent of any type or character
(other than an employee), the managing agent shall also be deemed an operator for the
purposes of this chapter and shall have the same duties and liabilities as his or her principal.
Compliance with the provisions of this chapter by either the principal or the managing agent
shall, however, be considered to be compliance by both.
(g) “Rental agent” means any person other than an operator who collects rent from a transient
for the transient’s occupancy of a hotel.
(Ord. 4032 § 1, 1991: Ord. 3704 § 1 (part), 1986: Ord. 2567 § 1 (part), 1970)
2.33.020 Tax imposed.
For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in
the amount of twelve percent of the rent charged by the operator paid by the transient. Said
tax constitutes a debt owed by the transient to the city, which is extinguished only by payment
to the operator or to the city or to a rental agent pursuant to section 2.33.140. The transient
shall pay the tax to the operator of the hotel at the time the rent is paid. If the rent is paid in
installments, a proportionate share of the tax shall be made with each installment. Any unpaid
tax shall be due upon the transient's ceasing occupancy in the hotel. If for any reason the tax
due is not paid to the operator of the hotel, the supervisor of revenue collections may require
that such tax shall be paid directly to the supervisor of revenue collections.
(Ord. 4983 § 1, 2007: Ord. 3704 § 1 (part), 1986: Ord. 3425 § 1, 1983: Ord. 2928 § 1, 1976: Ord.
2567 § 1 (part), 1970)
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2.33.030 Exemptions.
No tax shall be imposed upon:
(a) Any person as to whom, or any occupancy as to which, it is beyond the power of the city
to impose the tax herein provided;
(b) Any officer or employee of a foreign government who is exempt by reason of express
provision of federal law or international treaty;
(c) Any federal or state of California officer or employee on official business who shall pay
rent by warrant or check drawn on the treasury of the United States or the state of California or
provides written evidence of such official business on a form approved in advance by the
supervisor of revenue collections. Copies of the documentation for each exemption claimed
must be submitted to the supervisor of revenue collections with each return made pursuant to
Section 2.33.060.
No exemption shall be granted under this section except upon a claim therefor made at the
time rent is collected and under penalty of perjury upon a form prescribed by the supervisor of
revenue collections. Additionally, a copy of such warrant or check and a copy of such claim form
shall be submitted with each return made pursuant to Section 2.33.060.
(Ord. 3704 § 1 (part), 1986: Ord. 2567 § 1 (part), 1970)
2.33.040 Operator's duties.
Each operator shall collect the tax imposed by this ordinance to the same extent and at the
same time as the rent is collected from every transient. The amount of tax shall be separately
stated from the amount of the rent charged, and each transient shall receive a receipt for
payment from the operator. No operator of a hotel shall advertise or state in any manner,
whether directly or indirectly, that the tax or any part thereof will be assumed or absorbed by
the operator, or that it will not be added to the rent, or that, if added, any part will be refunded
except in the manner hereinafter provided. (Ord. 3704 § 1 (part), 1986: Ord. 2567 § 1 (part),
1970)
2.33.050 Registration.
(a) Within ten days after commencing business, each new or unregistered operator of any
hotel renting occupancy to transients shall present a valid certificate of occupancy issued by the
building official pursuant to Title 16 and apply for registration of said hotel with the supervisor
of revenue collections who will issue a "Transient Occupancy Registration Certificate" to be at
all times posted in a conspicuous place on the premises by such registrant or any operator
previously registered. The application shall require such information as the supervisor of
revenue collections deems necessary or convenient to the collection of the tax imposed by this
chapter. The supervisor of revenue collections may require updating of application information
from time to time as he or she deems necessary or advisable. Registration under this section
shall lapse with the certificate of occupancy upon which it was issued. Said certificate shall,
among other things, state the following:
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(1) The name of the operator;
(2) The address of the hotel;
(3) The date upon which the certificate was issued;
(4) "This Transient Occupancy Registration Certificate signifies that the person named on the
face hereof has fulfilled the requirements of Chapter 2.33 of the Palo Alto Municipal Code
'Transient Occupancy Tax' by registering with the supervisor of revenue collections for the
purpose of collecting from transients the Transient Occupancy Tax and remitting said tax to the
supervisor of revenue collections. This certificate does not authorize any person to conduct any
unlawful business or to conduct any lawful business in an unlawful manner, or to operate a
hotel without strictly complying with all local applicable laws, including but not limited to those
requiring a permit from any board, commission, department or office of this city. This
certificate does not constitute a permit and is not transferable to a different operator."
(Ord. 3704 § 1 (part), 1986: Ord. 2567 § 1 (part), 1970)
2.33.060 Reporting and remitting.
Each operator shall, on or before the last day of the month following the close of the previous
calendar month, or at the close of any shorter reporting period which may be established by
the supervisor of revenue collections, make a return to the supervisor of revenue collections on
forms provided by him or her of the total rents charged to transients and the total rents paid by
transients received and the amount of tax collected for transient occupancies. If no tax was due
or collected during the previous reporting period, the operator shall file a return so stating
under penalty of perjury. At the time the return is filed, the full amount of the tax collected
shall be remitted to the supervisor of revenue collections. The supervisor of revenue collections
may establish shorter reporting periods for any certificate holder if he or she deems it
necessary in order to ensure collection of the tax, and he or she may require further
information in the return. Returns and payments are due immediately upon cessation of
business for any reason. All taxes collected by operators pursuant to this chapter shall be held
in trust for the account of the city until payment thereof is made to the supervisor of revenue
collections.
(Ord. 3704 § 1 (part), 1986: Ord. 2567 § 1 (part), 1970)
2.33.070 Penalties.
(a) Original Delinquency. Any operator who fails to remit any tax imposed by this chapter
within the time required shall pay a penalty of ten percent of the amount of the tax which
penalty amount shall be added to the amount of the tax, for purposes of calculating additional
penalties.
(b) Continued Delinquency. Any operator who fails to remit any delinquent remittance on or
before a period of thirty days following the date on which the remittance first became
delinquent shall pay a second delinquency penalty of ten percent of the amount of the tax
including the ten percent penalty first imposed.
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(c) Fraud or Misrepresentation. If the director of finance, in his or her judgment. determines
that the nonpayment of any remittance due under this chapter is due to intentional conduct,
misrepresentation or fraud, a penalty of twenty-five percent of the amount of the tax shall be
added thereto in addition to the penalties stated in subsections (a) and (b) of this section.
(d) Additional Penalty. In addition to the penalties imposed under subsections (a) and (b) of
this section, any operator who fails to remit any tax imposed by this chapter shall pay a penalty
of one percent per month or fraction thereof, whichever is less, on the amount of the tax from
the date on which the remittance first became delinquent until paid.
(e) Penalties Merged with Tax. Every penalty imposed and such additional penalties as
accrue under the provisions of this section shall become a part of the tax herein required to be
paid.
(Ord. 3704 § 1 (part), 1986: Ord. 2567 § 1 (part), 1970)
2.33.080 Failure to collect and report tax; determination of tax by supervisor of revenue
collections.
If any operator fails or refuses to collect said tax and to make, within the time provided in this
chapter, any report and remittance of said tax or any portion thereof required by this chapter,
the supervisor of revenue collections shall proceed in such manner as he or she may deem best
to obtain facts and information on which to base his or her estimate of the tax due. As soon as
the supervisor of revenue collections shall procure such facts and information as he or she is
able to obtain upon which to base the assessment of any tax imposed by this chapter and
payable by any operator who has failed or refused to collect the same and to make such report
and remittance, he or she shall proceed to determine and assess against such operator the tax
and penalties provided by this chapter. In case such determination is made, the supervisor of
revenue and collections shall give a notice of the amount so assessed by sending it personally
or by depositing it in the United States mail, postage prepaid, addressed to the operator so
assessed at his or her last known place of address.
Such operator may within fourteen days after serving or mailing of such notice make
application in writing to the supervisor of revenue collections for a hearing on the amount
assessed. If application by an operator is not made within the time prescribed, the tax and
penalties, if any, determined by the supervisor of revenue collections to be due shall become
final and conclusive and immediately due and payable. If such application is made, the
supervisor of revenue collections shall give not less than ten days' written notice in the manner
prescribed herein to the operator to show cause at a time and place fixed in said notice why
said amount specified therein should not be fixed for such tax and penalties. At such hearing,
the operator may appear and offer evidence why such specified tax and penalties should not be
so fixed. After such hearing, the supervisor of revenue collections shall determine the proper
tax to be remitted and shall thereafter give written notice to the person operator in the manner
prescribed herein of such determination and the amount of such tax and penalties. The amount
determined to be due shall be payable after twenty days of the serving or mailing of such
determination unless an appeal is taken as provided in Section 2.33.090.
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(Ord. 3704 § 1 (part), 1986: Ord. 2567 § 1 (part), 1970)
2.33.090 Appeal.
Any operator aggrieved by any decision of the supervisor of revenue and collections with
respect to the amount of such tax and penalties, if any, may appeal to the director of finance or
his or her designee by filing a notice of appeal with the city clerk within twenty days of the
serving or mailing of the determination of tax due. The director of finance or the designee shall
fix a time and place for hearing of such appeal, and give notice in writing to such operator at his
or her last known place of address. The findings of the director of finance or the designee shall
be final and conclusive and shall be served upon the appellant in the manner prescribed above
for service of notice of hearing. Any amount found to be due shall be immediately due and
payable upon the service of notice.
(Ord. 3704 § 1 (part), 1986: Ord. 2567 § 1 (part), 1970)
2.33.100 Records.
It shall be the duty of every operator liable for the collection and payment to the city of any
tax imposed by this chapter to keep and preserve all records as may be necessary to determine
the amount of such tax as he or she may have been liable for the collection of and payment to
the city. Said records shall be kept or made available at one location within the limits of the city
for a period of three years. The supervisor of revenue collections and/or city auditor or their
designee shall have the right at any and all reasonable times, to examine and audit said records
for the purpose of determining the accuracy thereof.
(Ord. 3704 § 1 (part), 1986: Ord. 2567 § 1 (part), 1970)
2.33.110 Refunds.
(a) Claim Required. Prior to seeking judicial relief with respect to a dispute regarding the
amount of any tax, penalty, or interest collected or received by the city under this chapter, an
aggrieved taxpayer, fee payer, operator, transient or any other person must comply with the
provisions of section 2.28.230 of this code.
(b) Operators. An operator may claim as an overpayment any tax previously paid which was
calculated on the basis of taxable consideration written off by the operator as a bad debt in
accordance with generally accepted accounting principles and claimed as a deduction on a
federal income tax return in accordance with provisions of the Internal Revenue Code, and
regulations issued pursuant thereto. The bad debt claim may be taken as an adjustment to
future taxes due the city after the operator's procedure and forms for adjustment of bad debt
have been reviewed and approved by the supervisor of revenue collections.
(c) Transients. A transient may only request a refund of taxes under this chapter when the
transient, having paid the tax to the operator, establishes that the transient has been unable to
obtain a refund from the operator who collected the tax.
(Ord. 5078 § 3, 2010: Ord. 3704 § 1 (part), 1986: Ord. 2567 § 1 (part), 1970)
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2.33.120 Actions to collect.
Any tax required to be paid by any transient under the provisions of this chapter shall be
deemed a debt owed by the transient to the city. Any such tax collected by an operator which
has not been paid to the city shall be deemed a debt owed by the operator to the city. Any
person owing money to the city under the provisions of this chapter shall be liable to an action
brought in the name of the city for the recovery of such amount.
(Ord. 3704 § 1 (part), 1986: Ord. 2567 § 1 (part), 1970)
2.33.130 Violations; misdemeanor.
Any operator or other person who violates any of the provisions of this chapter or who fails or
refuses to register as required herein, or to furnish any returns or other data required by the
supervisor of revenue collections, or who renders a false or fraudulent return or claim, is guilty
of a misdemeanor, and is punishable as provided in this code.
(Ord. 3704 § 1 (part), 1986: Ord. 2567 § 1 (part), 1970)
2.33.140 Third party rental transactions.
(a) Any transient who pays rent to a rental agent instead of to an operator shall, at the time
the rent is paid, pay the tax to the rental agent in the manner required by section 2.33.020. If
for any reason the tax is not paid to the rental agent, it shall be paid to the operator before the
transient has ceased occupancy in the hotel or paid directly to the supervisor of revenue
collections pursuant to section 2.33.020. Any transient seeking a refund under section 2.33.110
of taxes paid to a rental agent must establish that the transient has been unable to obtain a
refund from the rental agent who collected the tax.
(b) Any rental agent who collects rent shall comply with all obligations of the operator set
forth in sections 2.33.040 and 2.33.100 of this chapter. The rental agent shall remit all collected
taxes to the operator before the deadline for the operator to remit the taxes to the supervisor
of revenue collections under section 2.33.060, and the rental agent shall provide the operator
with copies of all records required to be maintained by the operator pursuant to section
2.33.100 of this chapter, including records necessary for the operator to comply with its
obligations under this chapter.
(c) If the supervisor of revenue collection determines that a rental agent has failed to collect,
remit, or report any tax, the supervisor may take any action against the rental agent that he or
she may take against an operator under sections 2.33.070 and 2.33.080 of this chapter subject
to the requirements of those sections. If the supervisor assesses unremitted taxes and
penalties against the rental agent, the rental agent shall be subject to the provisions of sections
2.33080, 2.33.090, 2.33.110, and 2.33.120 of this chapter as if it were an operator. Nothing in
this section shall prohibit the supervisor from assessing the full amount of any unremitted taxes
and penalties solely against the operator in lieu of assessing some or all of those taxes and
penalties against the rental agent.
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SECTION 2. General Tax. Proceeds of the tax imposed by this Ordinance shall be
deposited in the general fund of the City and shall be available for any legal purpose.
SECTION 3. Amendment or Repeal. The City Council may repeal Chapter 2.33 of the
Palo Alto Municipal Code or amend that Chapter without a vote of the people except that any
amendment to Chapter 2.33 that increases the amount or rate of tax due from any Person
beyond the inflation-adjusted amounts and rates authorized by this Ordinance may not take
effect unless approved by a vote of the people.
SECTION 4. Severability. If any section, subsection, sentence, clause, phrase, or portion
of this Ordinance is for any reason held to be invalid or unenforceable by a court of competent
jurisdiction, the remaining portions of this Ordinance shall nonetheless remain in full force and
effect. The people hereby declare that they would have adopted each section, subsection,
sentence, clause, phrase, or portion of this Ordinance, irrespective of the fact that any one or
more sections, subsections, sentences, clauses, phrases, or portions of this Ordinance be
declared invalid or unenforceable.
SECTION 5. Effective Date. This ordinance shall be effective only if approved by a
majority of the voters and shall go into effect immediately after the vote is declared by the City
Council and the duty of service providers to collect the tax shall commence as provided in
California Public Utilities Code Section 799.
/ /
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SECTION 6. Execution. The Mayor is hereby authorized to attest to the adoption of this
Ordinance by the voters of the City by signing where indicated below.
I hereby certify that the foregoing Ordinance was PASSED, APPROVED and ADOPTED by
the People of the City of Palo Alto voting on the 4th day of November, 2014.
ATTEST:
__________________________ ___________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED
___________________________ ___________________________
Senior Asst. City Attorney City Manager
___________________________
Director of Administrative
Services
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JUNE 7-11, 2014
CITY OF PALO ALTO INFRASTRUCTURE RESEARCH
PHASE III
220-3913-WT
N=401
MARGIN OF SAMPLING ERROR ±4.9% (95% CONFIDENCE INTERVAL)
Hello, I'm ___________ from F-M-Three, a public opinion research company. We are conducting an opinion
survey about some important issues that concern residents of Palo Alto. I am definitely not trying to sell you
anything, we are only interested in your opinions. May I speak to______________? (YOU MUST SPEAK
TO THE VOTER LISTED. VERIFY THAT THE VOTER LIVES AT THE ADDRESS
A. Before we begin, I need to know if I have reached you on a cell phone, and if so, are you in a place
where you can talk safely without endangering yourself or others? (IF NOT ON A CELL PHONE,
ASK: “Do you own a cell phone?”)
Yes, cell and can talk safely --------------------------------- (ASK QB) -- 25%
Yes, cell but cannot talk safely ---------------------------------- TERMINATE
No, not on cell, but own one --------------------------------- (ASK QB) -- 50%
No, not on cell and do not own one ----------------------- (SKIP QB) -- 25%
(DON’T READ) DK/NA/REFUSED ------------------------- TERMINATE
(ASK QB ONLY IF CODES 1 OR 2 “OWN A CELL PHONE” IN QA)
B. Would you say you use your cell phone to make and receive all of your phone calls, most of your phone
calls, do you use your cell phone and home landline phone equally, or do you mostly use your home
landline phone to make and receive calls?
All cell phone---------------------- 25%
Mostly cell phone ----------------- 25%
Cell and landline equally -------- 20%
Mostly landline -------------------- 29%
(DON’T READ) DK/NA --------- 1%
(RESUME ASKING ALL RESPONDENTS)
1. Next, in November of this year there will be a general election for Governor, Congress and other state
and local offices and ballot measures. I know it is a long way off, but how likely are you to actually
vote in this election? Will you definitely vote, probably vote, are the chances 50-50 that you will vote,
will you probably not vote, or will you definitely not vote?
Definitely vote------------------------------ 87%
Probably vote ------------------------------- 11%
50-50 ------------------------------------------- 2%
Probably not vote ------------- TERMINATE
Definitely not vote ------------ TERMINATE
(DON'T KNOW/NA) ------- TERMINATE
NOW I WOULD LIKE TO ASK YOU ABOUT SOME ITEMS THAT MAY APPEAR ON A FUTURE
CITY OF PALO ALTO BALLOT.
ATACHMENT B
FAIRBANK, MASLIN, MAULLIN, METZ & ASSOCIATES 220-3913-WT PAGE 2
2. The first measure might read as follows:
“To provide funding that cannot be taken away by the State for general fund infrastructure and City
services such as earthquake safe fire stations, pedestrian and bike improvements, including safe routes to
school, streets, sidewalks, paths and bridges; and maintaining parks and recreation facilities, shall the
City increase the hotel/motel tax by two percentage points and update language to confirm equal
treatment of traditional and online bookings?”
If the vote on this measure were held today, would you vote yes in favor of it or vote no to oppose it?
(IF YES/NO, ASK: “Is that definitely or probably yes/no?” (IF UNDECIDED, ASK: “Are you
leaning toward voting yes or leaning toward voting no?”)
TOTAL YES------------------------------- 69%
Definitely yes ------------------------------- 25%
Probably yes -------------------------------- 35%
Undecided, lean yes ------------------------- 9%
TOTAL NO -------------------------------- 19%
Undecided, lean no -------------------------- 2%
Probably no --------------------------------- 10%
Definitely no ---------------------------------- 8%
(DON’T READ) DK/NA ---------------- 12%
FAIRBANK, MASLIN, MAULLIN, METZ & ASSOCIATES 220-3913-WT PAGE 3
(ASK Q3 ONLY IF CODES 1-6 IN Q2)
3. In a few words of your own, why would you vote YES/NO on this measure? (OPEN END, RECORD
VERBATIM RESPONSE BELOW; PROBE FOR VERY SPECIFIC RESPONSES – NOT JUST
“SOUNDS LIKE A GOOD/BAD IDEA”)
a. Yes:
Infrastructure needs to be fixed ------------------------------------------------------------ 27%
General support ------------------------------------------------------------------------------ 23%
Will be funded by tourists ------------------------------------------------------------------ 17%
More funding is needed --------------------------------------------------------------------- 13%
Supports community ------------------------------------------------------------------------ 11%
Pedestrian/bike safety ----------------------------------------------------------------------- 10%
Better for the future ---------------------------------------------------------------------------- 1%
Traffic is bad ----------------------------------------------------------------------------------- 0%
Other --------------------------------------------------------------------------------------------- 7%
Don’t know ------------------------------------------------------------------------------------- 1%
Refused ------------------------------------------------------------------------------------------ 2%
b. No:
The tax is already too high ----------------------------------------------------------------- 26%
Spend wisely the money they already have ---------------------------------------------- 23%
Don’t have enough information ----------------------------------------------------------- 18%
Tourists shouldn’t have to pay for it -------------------------------------------------------- 9%
General oppose --------------------------------------------------------------------------------- 6%
Costly ------------------------------------------------------------------------------------------- 6%
Too many things on one measure ----------------------------------------------------------- 5%
Unnecessary ------------------------------------------------------------------------------------ 4%
Will affect businesses negatively ------------------------------------------------------------ 4%
Should spend money elsewhere-------------------------------------------------------------- 1%
Other --------------------------------------------------------------------------------------------- 6%
Don’t know ------------------------------------------------------------------------------------- 1%
FAIRBANK, MASLIN, MAULLIN, METZ & ASSOCIATES 220-3913-WT PAGE 4
(RESUME ASKING ALL RESPONDENTS)
3A. One of the provisions of this measure would update the language of the existing hotel/motel tax to
confirm equal treatment of traditional and online bookings. This means that rooms that are booked
online through services such as Air B-N-B would be required to pay hotel/motel taxes. Do you support
or oppose this particular aspect of the measure? (IF SUPPORT/OPPOSE, ASK:) “Is that strongly
SUPPORT/OPPOSE or just somewhat?”
TOTAL SUPPORT ---------------------- 61%
Strongly support --------------------------- 32%
Somewhat support ------------------------- 29%
TOTAL NO -------------------------------- 23%
Somewhat oppose -------------------------- 13%
Strongly oppose ---------------------------- 10%
(DON’T READ) DK/NA ---------------- 16%
4. The next measure I would like to ask you about might read as follows:
“Shall the City of Palo Alto adopt an ordinance to reduce the tax rate for the telecommunications portion
of the Utility Users Tax (which helps fund basic City services and projects) from five percent to four-
point-seven-five percent; modernize its provisions to ensure equal treatment of taxpayers regardless of
telecommunications technology used; and eliminate a discounted tax rate paid by a small number of
commercial large users of gas, electric and water services?”
If the vote on this measure were held today, would you vote yes in favor of it or vote no to oppose it?
(IF YES/NO, ASK: “Is that definitely or probably yes/no?” (IF UNDECIDED, ASK: “Are you
leaning toward voting yes or leaning toward voting no?”)
TOTAL YES------------------------------- 47%
Definitely yes ------------------------------- 11%
Probably yes -------------------------------- 27%
Undecided, lean yes ----------------------- 10%
TOTAL NO -------------------------------- 29%
Undecided, lean no -------------------------- 7%
Probably no --------------------------------- 12%
Definitely no -------------------------------- 10%
(DON’T READ) DK/NA ---------------- 24%
FAIRBANK, MASLIN, MAULLIN, METZ & ASSOCIATES 220-3913-WT PAGE 5
NEXT I WOULD LIKE TO ASK YOU A FEW MORE QUESTIONS ABOUT THE FIRST MEASURE I
ASKED YOU ABOUT, THE TWO PERCENT HOTEL/MOTEL TAX MEASURE TO PROVIDE
LOCAL FUNDING FOR EARTHQUAKE SAFETY UPGRADES AND PEDESTRIAN AND BIKE
IMPROVEMENTS, AND PARK AND RECREATION FACILITY MAINTAINENCE.
5. I am going to read you a list of types of projects and objectives that could be funded by this measure.
As I read each one, please tell me how important it is to you that each project be undertaken: extremely
important, very important, somewhat important, or not too important? (RANDOMIZE)
NOT TOTAL
EXT VERY SMWT TOO (DK/ EXT/
(ASK ALL RESPONDENTS) IMP IMP IMP IMP NA) VERY
[ ]a. Ensuring that local fire stations are earthquake
safe --------------------------------------------------------- 22% ----- 44% ----- 24% ------ 9% ------ 0% 66%
[ ]b. Improving bike lanes and pathways ------------------- 13% ----- 36% ----- 39% ----- 11% ------ 0% 49%
[ ]c. (T) Reducing traffic congestion ------------------------ 18% ----- 36% ----- 35% ----- 10% ------ 0% 55%
[ ]d. (T) Providing safe sidewalks, paths and bridges
for pedestrians -------------------------------------------- 16% ----- 42% ----- 35% ------ 7% ------ 0% 58%
[ ]e. Ensuring vital City facilities like police stations
and the emergency command center are
earthquake safe ------------------------------------------- 24% ----- 45% ----- 23% ------ 7% ------ 1% 69%
[ ]f. (T) Making sidewalks, city buildings and parks
accessible for people with disabilities ----------------- 14% ----- 40% ----- 36% ------ 9% ------ 0% 54%
[ ]g. (T) Ensuring a modern and stable 9-1-1
emergency communications network ------------------ 36% ----- 42% ----- 15% ------ 6% ------ 1% 78%
[ ]h. Improving city streets to make busy
intersections safer ---------------------------------------- 22% ----- 42% ----- 28% ------ 7% ------ 1% 64%
[ ]i. (T) Providing safe routes for bicyclists and
pedestrians ------------------------------------------------- 23% ----- 43% ----- 27% ------ 6% ------ 0% 66%
[ ]j. (T) Providing safe routes to school for students ----- 30% ----- 44% ----- 19% ------ 6% ------ 1% 74%
[ ]k. (T) Providing adequate parking ------------------------ 13% ----- 33% ----- 41% ----- 13% ------ 1% 46%
(SPLIT SAMPLE A ONLY)
[ ]l. (T) Fixing potholes and paving City streets ---------- 16% ----- 41% ----- 38% ------ 5% ------ 0% 57%
[ ]m. (T) Improving parks, playgrounds and
playfields for youth and adult recreation --------------- 7% ----- 28% ----- 47% ----- 18% ------ 1% 35%
(SPLIT SAMPLE B ONLY)
[ ]n. (T) Maintaining City streets and roads ---------------- 17% ----- 52% ----- 27% ------ 4% ------ 0% 69%
[ ]o. (T) Maintaining City parks and recreation
facilities ---------------------------------------------------- 12% ----- 44% ----- 39% ------ 5% ------ 0% 56%
FAIRBANK, MASLIN, MAULLIN, METZ & ASSOCIATES 220-3913-WT PAGE 6
(RESUME ASKING ALL RESPONDENTS)
NOW I AM GOING TO READ YOU SOME STATEMENTS BY SUPPORTERS AND OPPONENTS
OF THE HOTEL/MOTEL TAX MEASURE THAT WOULD PROVIDE LOCAL FUNDING FOR
EARTHQUAKE SAFETY UPGRADES, PEDESTRIAN AND BIKE IMPROVEMENTS, AND PARK
AND RECREATION FACILITY MAINTENANCE.
6. First, here are some statements from people who support the measure. After hearing each statement,
please tell me whether you find it very convincing, somewhat convincing, or not convincing as a reason
to vote yes on the measure. If you do not believe the statement, please tell me that too.
(RANDOMIZE)
TOTAL
VERY SMWT NOT DON'T VERY/
CONV CONV CONV BEL (DK/NA) SMWT
[ ]a. (NO INCREASE TO LOCAL RESIDENTS)
This measure will not increase taxes for local
residents. This measure is designed to ensure
that tourists and other visitors staying in our
area contribute to a portion of maintenance for
the local infrastructure they use during their
stay, including streets and roads, park and
recreation facilities, parking, sidewalks and
pedestrian and bike pathways and bridges,
among others. --------------------------------------------- 35% ----- 39% ----- 19% ------ 6% ------ 0% 75%
[ ]b. (QUALITY OF LIFE) Palo Alto’s
infrastructure is aging. Making investments in
maintaining and improving local streets,
sidewalks, bike lanes, bridges and parks and
recreation centers, as well as making vital safety
upgrades to local infrastructure will help ensure
that Palo Alto remains a safe, beautiful and
vibrant place to live, work and raise a family. ------- 36% ----- 45% ----- 13% ------ 6% ------ 0% 81%
[ ]c. (FORWARD THINKING) In the spirit of Palo
Alto’s long tradition of forward thinking, city
leaders have developed a comprehensive plan to
address city infrastructure needs based on
extensive work by a citizen-led Blue Ribbon
Commission. This measure will provide the
funding necessary to address critical needs to
improve and maintain a strong foundation of
quality infrastructure. ------------------------------------ 17% ----- 45% ----- 27% ------ 8% ------ 3% 62%
FAIRBANK, MASLIN, MAULLIN, METZ & ASSOCIATES 220-3913-WT PAGE 7
TOTAL
VERY SMWT NOT DON'T VERY/
CONV CONV CONV BEL (DK/NA) SMWT
[ ]d. (ROAD/SIDEWALK SAFETY) Palo Alto’s
city streets, intersections and sidewalks must be
maintained and improved to minimize traffic
congestion and maximize safety, including
making dangerous intersections safer and
helping to ensure that students have safe routes
to school. --------------------------------------------------- 37% ----- 43% ----- 15% ------ 5% ------ 0% 81%
[ ]e. (PUBLIC SAFETY) This measure will help
fund vital seismic upgrades to the city’s public
safety and emergency response infrastructure,
including local police and fire stations and the
City’s emergency command center. ------------------- 32% ----- 47% ----- 13% ------ 7% ------ 2% 78%
[ ]f. (FUNDING GAP) Over the last four years,
Palo Alto has made a focused effort to improve
infrastructure and current planning for the City’s
future needs uses existing resources wherever
possible to invest in high priority improvements
and maintenance. However, a funding gap
remains. This measure will provide the funding
necessary to fill in those gaps. -------------------------- 20% ----- 51% ----- 19% ------ 9% ------ 1% 71%
7. Now that you have heard more about it, let me ask you again about the measure to increase the
hotel/motel tax by two percent to provide local funding for earthquake safety upgrades, pedestrian and
bike improvements, and park and recreation facility maintenance. If the election was held today do you
think you would vote yes to support or no to oppose this measure? (IF YES/NO, ASK: “Is that
definitely or probably yes/no?” (IF UNDECIDED, ASK: “Are you leaning toward voting yes or
leaning toward voting no?”)
TOTAL YES------------------------------- 74%
Definitely yes ------------------------------- 34%
Probably yes -------------------------------- 33%
Undecided, lean yes ------------------------- 7%
TOTAL NO -------------------------------- 21%
Undecided, lean no -------------------------- 1%
Probably no --------------------------------- 10%
Definitely no ---------------------------------- 9%
(DON’T READ) DK/NA ------------------ 5%
FAIRBANK, MASLIN, MAULLIN, METZ & ASSOCIATES 220-3913-WT PAGE 8
8. Next, here are some statements from people who oppose the measure we have been discussing. After
hearing each statement, please tell me whether you find it very convincing, somewhat convincing, or not
convincing as a reason to vote no on the measure. If you do not believe the statement, please tell me
that too. (RANDOMIZE)
TOTAL
VERY SMWT NOT DON'T VERY/
CONV CONV CONV BEL (DK/NA) SMWT
[ ]a. (WASTE) The City cannot be trusted to spend
tax dollars wisely. Funding from this measure
will only be misspent, mismanaged or wasted. ------ 12% ----- 21% ----- 39% ----- 27% ------ 1% 33%
[ ]b. (OTHER PRIORITIES) There are more
important priorities for tax payer dollars– such
as jobs and the economy, and cuts to public
safety and elementary and high schools. We
cannot afford to spend scarce resources on
infrastructure. ---------------------------------------------- 4% ----- 17% ----- 55% ----- 23% ------ 1% 21%
[ ]c. (HURTS LOCAL BUSINESSES) This
measure will hurt small local hotels and motels
by raising the cost of doing business and makes
Palo Alto less competitive with neighboring
cities. ------------------------------------------------------- 16% ----- 32% ----- 35% ----- 16% ------ 1% 48%
[ ]d. (TAXES) Local taxes are already too high.
Instead of asking taxpayers for more money, the
City should tighten its belt and live within its
means. ------------------------------------------------------ 18% ----- 29% ----- 36% ----- 16% ------ 1% 47%
9. Sometimes over the course of a survey like this people change their minds and sometimes they do not.
With that in mind, let me ask you one last time about the measure to increase the hotel/motel tax by two
percent to provide local funding for earthquake safety upgrades, pedestrian and bike improvements, and
park and recreation facility maintenance. If the election was held today do you think you would vote
yes to support or no to oppose this measure? (IF YES/NO, ASK: “Is that definitely or probably
yes/no?” (IF UNDECIDED, ASK: “Are you leaning toward voting yes or leaning toward voting no?”)
TOTAL YES------------------------------- 72%
Definitely yes ------------------------------- 34%
Probably yes -------------------------------- 33%
Undecided, lean yes ------------------------- 5%
TOTAL NO -------------------------------- 23%
Undecided, lean no -------------------------- 2%
Probably no --------------------------------- 11%
Definitely no -------------------------------- 10%
(DON’T READ) DK/NA ------------------ 5%
FAIRBANK, MASLIN, MAULLIN, METZ & ASSOCIATES 220-3913-WT PAGE 9
HERE ARE MY LAST QUESTIONS, AND THEY ARE FOR STATISTICAL PURPOSES ONLY.
10. (T) Do you ... (READ LIST),
Own a single family home ---------------- 62%
Own a condominium ------------------------ 9%
Rent an apartment or home --------------- 26%
(DON'T READ) Refused ------------------ 3%
(ASK Q11 IF CODE 1 OR 2 IN Q10)
11. (T) Did you buy your home before 1978 or in 1978 or after?
Before 1978 --------------------------------- 22%
In 1978 or after ----------------------------- 77%
(DON'T READ) Refused ------------------ 0%
(RESUME ASKING ALL RESPONDENTS)
12. (T) With which racial or ethnic group do you identify yourself: Latino or Hispanic, African American or
Black, Caucasian or White, South Asian, some other Asian or Pacific Islander group or some other
ethnic or racial background? (READ CHOICES BELOW)
Hispanic/Latino ------------------------------ 2%
Black/African American -------------------- 3%
Anglo/White -------------------------------- 70%
South Asian ----------------------------------- 7%
Some other Asian/Pacific Islander group 6%
Other (SPECIFY_____) -------------------- 3%
(DON’T READ) MIXED ----------------- 1%
(DON'T KNOW/REFUSED) ------------ 9%
13. (T) I don’t need to know the exact amount, but I’m going to read you some categories for household
income. Would you please stop me when I have read the category indicating the total combined income
for all the people in your household before taxes in 2013?
$50,000 a year or less ----------------------- 8%
$50,001 - $100,000 ------------------------ 17%
$100,001 - $150,000 ----------------------- 17%
$150,001 – $200,000 ---------------------- 13%
More than $200,000 ----------------------- 25%
(DON'T KNOW/REFUSED) ---------- 20%
FAIRBANK, MASLIN, MAULLIN, METZ & ASSOCIATES 220-3913-WT PAGE 10
THANK AND TERMINATE
GENDER (BY OBSERVATION): Male ------------------------------------------ 48%
Female --------------------------------------- 52%
PARTY REGISTRATION: Democrat ------------------------------------ 53%
Republican ---------------------------------- 16%
No Party Preference ----------------------- 30%
Other ------------------------------------------- 1%
FLAGS
P08 -------------------------------------------- 57%
G08 ------------------------------------------- 83%
P10 -------------------------------------------- 68%
G10 ------------------------------------------- 87%
P12 -------------------------------------------- 62%
G12 ------------------------------------------- 86%
Blank ------------------------------------------ 7%
AGE
18-29 ------------------------------------------ 8%
30-39 ------------------------------------------ 9%
40-49 ----------------------------------------- 17%
50-64 ----------------------------------------- 32%
65-74 ----------------------------------------- 15%
75+ -------------------------------------------- 19%
PERMANENT ABSENTEE
Yes ------------------------------------------- 72%
No -------------------------------------------- 28%
HOUSEHOLD PARTY TYPE
Dem 1 ---------------------------------------- 32%
Dem 2+ -------------------------------------- 14%
Rep 1 ------------------------------------------- 5%
Rep 2+ ----------------------------------------- 5%
Ind 1+ ---------------------------------------- 24%
Mix ------------------------------------------- 19%
City of Palo Alto (ID # 4823)
City Council Staff Report
Report Type: Action Items Meeting Date: 6/16/2014
City of Palo Alto Page 1
Summary Title: EVSE Ordinance City Council
Title: Public Hearing: Recommend Adoption of an Ordinance Requiring All
New Multi-Family Residential and Non-Residential Construction to Provide
for Current or Future Installation of EV Chargers
From: City Manager
Lead Department: Planning and Community Environment
Recommendation
Staff recommends that the City Council adopt the attached local amendments to the California
Green Building Standards Code requiring that all new Multi-Family Residential and Non-
Residential construction provide for the current or future installation of Electric Vehicle
chargers.
Executive Summary
On December 9, 2013, the Palo Alto City Council, in its regular City Council meeting, adopted an
ordinance requiring all new single-family residential construction to provide the necessary
circuitry for EV chargers. At its December 9, 2013 meeting, the City Council also directed staff
to bring back to them for their review an ordinance that would create EV-friendly
requirements for all new construction of multi-family residential and non-residential
structures.
Staff convened the EVSE Task Force to develop recommendations for the current or future
provision of EV chargers in the following circumstances:
(1) New multi-family residential construction;
(2) New multi-family residential construction, with individual attached parking;
(3) New non-residential structures other than hotels;
(4) New hotels
There are two attachments to this report. “Attachment A” is a draft ordinance that illustrates
how the Task Force’s recommendations may be implemented as a local amendment to the
California Green Building Standards Code. “Attachment B” provides a detailed estimate of costs
for a typical construction project which could incur as a result of the Task Force’s
recommendations.
City of Palo Alto Page 2
On May 13th, 2014, the Policy and Services Committee met for a special meeting to review the
recommendations of the EVSE Task Force. The Committee directed staff to proceed with the
vast majority of the EVSE Task Force recommendations, with minor modifications. With one
exception discussed below, the Committee’s direction has been incorporated into the attached
ordinance.
Background
In response to City Council direction, staff convened the EVSE Task Force to develop
recommendations for new multi-family, non-residential, and hotel parking requirements that
will make Palo Alto a leader in promotion of electric vehicles.
Mobile sources account for well over half of the emissions that contribute to ozone and
particulate matter and nearly 40% of the greenhouse gas emissions in California. In order to
help meet California’s health-based air quality standards and greenhouse gas emission
reduction goals, significant gains are needed in the transportation sector in terms of reduced
petroleum usage.
Governor Brown's Executive Order of March 2012, directs state government to support and
facilitate the rapid commercialization of zero-emission vehicles (ZEVs), with a target of having
1.5 million ZEVs on California roadways by 2025. In order to meet this goal and in order for
electric vehicles to proliferate, it is important that early consumers have a positive experience
and that facilities be readily available to provide convenient charging stations for the electric
vehicles.
According to a 2012 study completed by the California Center for Sustainable Energy in
coordination with the Air Resources Board, approximately 1,000 new plug-in vehicles are being
sold in the state every month and, at that time, Californians owned more than 12,000 plug-in
electric vehicles (roughly 35% of all plug-in vehicles in the United States).
These recommendations are developed in response to numerous requests by stakeholders to
provide building standards that will meet current and future demands for Electric Vehicle
Supply Equipment (EVSE) in multi-family dwellings and commercial (non-residential) buildings.
These recommendations will encourage and support use of electric vehicles as an alternate
means of transportation. The provisions for EVSE for multi-family construction are intended to
provide low-cost strategies that offer choice and savings in design for multi-family unit
homeowners and multi-family tenants wishing to purchase an electric vehicle without
necessitating retroactive installation of higher capacity electrical wiring and supply equipment
for charging electrical vehicles. The provisions for EVSE for commercial construction are
intended to provide sufficient access to electric vehicle charging capabilities.
Staff has met multiple times with a group of stakeholders including EV owners, EVSE installers,
contractors, and other related parties to review the recommendations brought before the
City of Palo Alto Page 3
Policy and Services for review and the City Council for potential adoption. The
recommendations before you were vetted with the Development Center Advisory Group
(DCAG). During the first part of 2014, staff has continued the meetings with the EVSE Task
Force to draft recommendations for new multi-family, non-residential, and hotel construction.
In addition, staff has reviewed the EV permit fees and process to ensure it is cost neutral and EV
friendly.
Discussion
By adopting the attached ordinance, the City of Palo Alto will require a three-tier combination
of EVSE, EVSE ready outlets, and EVSE ready circuitry for new multi-family and commercial
construction.
The highest tier requires an “EVSE” parking space that contains installed electric vehicle supply
equipment capable of charging at 30A or higher at 208 or 240 volts. The second highest tier
requires an “EVSE-ready outlet,” such that little or no additional work is required to install an
EVSE. The third tier requires “conduit only” (also called “raceway only”) identical to the
requirement the City Council adopted for new single-family construction. A requirement to
provide conduit only may be met by providing an EVSE-ready outlet, and a requirement to
provide an EVSE-ready outlet may be met by providing an installed EVSE.
In an effort to help illustrate to council the impact of these requirements to construction, staff
has built two scenarios based on cost estimates for the purchase and installation of required
supplies and equipment provided in Figure 1-1 in Attachment B.
New Multi-family residential requirements
The ordinance requires the following for new multi-family residential structures:
1. For new multi-family residential construction, the ordinance requires one EVSE-Outlet
or EVSE Installed per unit.
2. For guest parking for new multi-family residential structures, the ordinance requires
Conduit Only, EVSE-Outlet, or EVSE Installed for at least 25% of guest parking spaces. At
least 5% of these spaces shall be EVSE Installed with a minimum of one EVSE Installed
space. A scenario has been provided in Figure 1-3 in Attachment B.
3. For new multi-family construction with individual attached parking (i.e. tuck-under
garages), the ordinance requires one attached space with Conduit Only, EVSE-ready, or
EVSE Installed. This requirement is identical to the existing requirement for new single
family residences.
New Non-residential requirements
The ordinance requires the following for new non-residential (i.e. commercial) structures:
1. For new non-residential construction, other than hotels, the ordinance requires Conduit
Only, EVSE-Outlet, or EVSE Installed for at least 25% of parking spaces. At least 5% of
City of Palo Alto Page 4
these spaces shall be EVSE Installed with a minimum of one EVSE Installed space. A
scenario has been provided in Figure 1-2 in Attachment B.
2. For new hotels, the ordinance requires Conduit Only, EVSE-Outlet, or EVSE Installed for
at least 30% of parking spaces. At least 10% of these spaces shall be EVSE Installed with
a minimum of one EVSE Installed space.
General provisions
The ordinance further requires that:
1. Property owners provide minimum circuit capacity sufficient to ensure electrical service
will be able to accommodate future installation of EV chargers in all spaces where an
outlet or conduit are provided.
2. Conduit Only, EVSE-Outlet, or EVSE Installed be provided for accessible parking spaces,
with the condition that parking will not be restricted to electric vehicles in accessible
spaces with EV equipment or infrastructure.
3. The Conduit, Outlet or EVSE required by the ordinance be located to provide convenient
access, subject to guidelines to be established by the City.
Policy and Services Committee Recommendations
At its May 13, 2014 meeting, the Policy and Services Committee approved the EVSE Task Force
recommendations with three modifications.
First, the Committee directed staff to eliminate a distinction between multi-family residential
structures developed with a condominium map and those developed without a condominium
map. Upon implementing this change, staff found that an additional section dealing with mixed-
use development was redundant and eliminated that section to further simplify the ordinance.
In the event of mixed use development, the single-family and multi-family requirements will
apply to those parking spaces reserved exclusively for residents, the residential guest parking
requirements will apply to those spaces reserved exclusively for guests, and the non-residential
requirements will apply to all remaining parking spaces.
Second, the Committee directed staff to reevaluate the ordinance with the Council in three
years’ time. This will provide an opportunity for the Council to assess EV market conditions,
industry changes, and the practical impacts of the City’s cutting edge EVSE requirements.
Because the ordinance is structured as a local amendment to the Green Building Standards
Code, the Council will automatically be required to revisit the issue in 2016, when all California
Building Codes must be updated and adopted.
Third, the Committee directed staff to insert a requirement that the property owner bear the
cost of electricity for actual EVSE installed in guest parking and commercial development. At
this time, staff recommends returning the issue of payment to the Policy and Services
Committee and moving forward with the remainder of the ordinance. In attempting to
implement the Committee’s direction on this issue, staff encountered a number of detailed
City of Palo Alto Page 5
policy questions for which additional direction is required. In addition, staff is currently
exploring opportunities with the electric utility to develop an incentive and rebate program to
help offset the cost of installing and operating EVSE; staff hopes to bring these issues forward
on a coordinated, City-wide basis. Finally, there is some question regarding the legal ability of
the City to impose such a requirement. This is a developing area of the law, and there is a case
pending in the California Supreme Court that may shed light on these issues. To allow further
guidance on legal issues and additional policy direction from the Council, staff recommends
addressing questions of payment for EV chargers at a later date.
Resource Impact
Resource impacts from the adoption of this ordinance will be the additional staff time in plan
checking and inspections. As with the enforcement of all building standards by the City, these
costs are recovered through Building Permit fees.
Environmental Review
This action is exempt from the California Environmental Quality Act (CEQA) under Sections
15061, 15303, and 15311 of the CEQA Guidelines.
Attachments:
Attachment A: EVSE Ordinance for multi-family and commercial (PDF)
Attachment B: Cost Analysis (PDF)
ATTACHMENT A
NOT YET ADOPTED
140423 dm 0160077 1
Ordinance No. ______
Ordinance of the Council of the City of Palo Alto Adopting Section 16.14.380 of the Palo
Alto Municipal Code to Adopt Local Amendments to the California Green Building
Standards Code and Related Findings
The Council of the City of Palo Alto does ORDAIN as follows:
SECTION 1. Findings and Declarations.
The adoption and amendment of Section A4.106.8 of the California Green Building
Standards Code is justified on the basis of local topographical and geographical conditions.
Failure to address and significantly reduce greenhouse gas emissions could result in rises to sea
level, including in San Francisco Bay, that could put at risk Palo Alto homes and businesses,
public facilities, and Highway 101 (Bayshore Freeway), particularly the mapped Flood Hazard
areas of the City. The aforementioned conditions create hazardous conditions for which
departure from California Green Building Standards Code is required.
SECTION 2. Section 16.14.370 of the Palo Alto Municipal Code is amended to read
as follows:
16.14.370 Section A4.106.8 Electric Vehicle (EV) Charging.
Section A4.106.8 of the California Green Building Standards Code is added and
amended to read:
A4.106.8 Electric Vehicle (EV) Charging for Residential Structures. Newly
constructed single family and multifamily residential structures, including residential structures
constructed as part of a mixed use development, shall comply with the following requirements
for electric vehicle supply equipment (EVSE). All parking space calculations under this section
shall be rounded up to the next full space. New detached single‐family dwellings shall comply
with the following requirements for electric vehicle supply equipment (EVSE):
A4.106.8.1 Definitions. For the purposes of this section, the following
definitions shall apply:
(a) Level 2 EVSE. “Level 2 EVSE” shall mean an EVSE capable of charging at 30
amperes or higher at 208 or 240 VAC. An EVSE capable of simultaneously
charging at 30 amperes for each of two vehicles shall be counted as two
Level 2 EVSE.
(b) Conduit Only. “Conduit Only” shall mean, at minimum: (1) a panel capable to
accommodate a dedicated branch circuit and service capacity to install a
208/240V, 50 amperes grounded AC outlet; and (2) raceway or wiring with
capacity to accommodate a 100 ampere circuit; terminating in (3) a listed
ATTACHMENT A
NOT YET ADOPTED
2
cabinet, box, enclosure, or NEMA receptacle. The raceway shall be installed
so that minimal removal of materials is necessary to complete the final
installation.
(c) EVSE‐Ready Outlet. “EVSE‐Ready Outlet” shall mean, at minimum: (1) a panel
capable to accommodate a dedicated branch circuit and service capacity to
install a 208/240V, 50 amperes grounded AC outlet; (2) a two‐pole circuit
breaker; (3) raceway with capacity to accommodate 100‐ampere circuit; (4)
50 ampere wiring; terminating in (5) a 50 ampere NEMA receptacle in a
covered outlet box.
(d) EVSE Installed. “EVSE Installed” shall mean an installed Level 2 EVSE.
A4.106.8.2 Single Family Residences. The following standards apply to newly
constructed detached and attached single family residences.
(a) In general. The property owner shall provide Conduit Only, EVSE‐Ready
Outlet, or EVSE Installed for each residence. as minimum a panel capable to
accommodate a dedicated branch circuit and service capacity to install at
least a 208/240V, 50 amperes grounded AC outlet. The raceway shall
terminate in close proximity to the proposed location of the charging
system into a listed cabinet, box, enclosure, or NEMA receptacle. The
raceway shall be installed so that minimal removal of materials is necessary
to complete the final installation. The raceway shall have capacity to
accommodate a 100‐ampere circuit.
(b) Location.Design. The proposed location of a charging station may be
internal or external to the dwelling, and shall be in close proximity to an on‐
site parking space consistent with City guidelines, rules, and regulations. The
proposed design must comply with all applicable design guidelines, setbacks
and other code requirements.
A4.106.8.3 Multi‐Family Residential Structures. The following standards apply
to newly constructed residences in a multi‐family residential structure, except as
provided in section A4.106.8.4.
(a) Resident parking. The property owner shall provide at least one EVSE‐Ready
Outlet or EVSE Installed for each residential unit in the structure.
(b) Guest parking. The property owner shall provide Conduit Only, EVSE‐Ready
Outlet, or EVSE Installed, for at least 25% of guest parking spaces, among
which at least 5% (and no fewer than one) shall be EVSE Installed.
ATTACHMENT A
NOT YET ADOPTED
3
(c) Accessible spaces. The percentage calculations and substantive
requirements imposed by this section shall be applied separately to
accessible parking spaces. Parking at accessible spaces where an EVSE is
installed shall not be limited to electric vehicles.
(d) Minimum total circuit capacity. The property owner shall ensure sufficient
circuit capacity, as determined by the Chief Building Official, to support a
Level 2 EVSE in every location where Circuit Only, EVSE‐Ready Outlet or
EVSE Installed is required.
(e) Location. The EVSE, receptacles, and/or raceway required by this section
shall be placed in locations allowing convenient installation of and access to
EVSE. In addition, if parking is deed‐restricted to individual residential units,
the EVSE or receptacles required by subsection (a) shall be located such that
each unit has access to its own EVSE or receptacle. Location of EVSE or
receptacles shall be consistent with all City guidelines, rules, and
regulations.
A4.106.8.4 Exception – Multi‐Family Residential Structures with Individual,
Attached Parking. The property owner shall provide Conduit Only, EVSE‐Ready
Outlet, or EVSE Installed for each newly constructed residence in a multi‐family
residential structure featuring: (1) a parking space attached to the residence; and
(2) a shared electrical panel between the residence and parking space (e.g., a
multi‐family structure with tuck‐under garages).
SECTION 3. Section 16.14.380 of the Palo Alto Municipal Code is amended to read
as follows:
16.14.380 Section A5.106.5.3 Electric Vehicle (EV) Charging for Non‐Residential Structures.
Section A5.106.5.3 of the California Green Building Standards Code is added and
amended to read:
A5.106.5.3 Electric Vehicle (EV) Charging for Non‐Residential Structures. New
non‐residential structures shall comply with the following requirements for electric vehicle
supply equipment (EVSE). All parking space calculations under this section shall be rounded up
to the next full space.
A5.106.5.3.1 Definitions. For the purposes of this section, the following
definitions shall apply:
(a) Level 2 EVSE. “Level 2 EVSE” shall mean an EVSE capable of charging at 30
amperes or higher at 208 or 240 VAC. An EVSE capable of simultaneously
ATTACHMENT A
NOT YET ADOPTED
4
charging at 30 amperes for each of two vehicles shall be counted as two
Level 2 EVSE.
(b) Conduit Only. “Conduit Only” shall mean, at minimum: (1) a panel capable to
accommodate a dedicated branch circuit and service capacity to install at
least a 208/240V, 50 amperes grounded AC outlet; and (2) raceway or wiring
with capacity to accommodate a 100 ampere circuit; terminating in (3) a
listed cabinet, box, enclosure, or NEMA receptacle. The raceway shall be
installed so that minimal removal of materials is necessary to complete the
final installation.
(c) EVSE‐Ready Outlet. “EVSE‐Ready Outlet” shall mean, at minimum: (1) a panel
capable to accommodate a dedicated branch circuit and service capacity to
install at least a 208/240V, 50 amperes grounded AC outlet; (2) a two‐pole
circuit breaker; (3) raceway with capacity to accommodate a 100‐ampere
circuit; (4) 50 ampere wiring; terminating in (5) a 50 ampere NEMA
receptacle in a covered outlet box.
(d) EVSE Installed. “EVSE Installed” shall mean an installed Level 2 EVSE.
A5.106.5.3.2 Non‐Residential Structures Other than Hotels. The following
standards apply newly constructed non‐residential structures other than hotels.
(a) In general. The property owner shall provide Conduit Only, EVSE‐Ready
Outlet, or EVSE Installed for at least 25% of parking spaces, among which at
least 5% (and no fewer than one) shall be EVSE Installed.
(b) Accessible spaces. The percentage calculations and substantive
requirements imposed by this section shall be applied separately to
accessible parking spaces. Parking at accessible spaces where an EVSE is
installed shall not be limited to electric vehicles.
(c) Minimum total circuit capacity. The property owner shall ensure sufficient
circuit capacity, as determined by the Chief Building Official, to support a
Level 2 EVSE in every location where Circuit Only, EVSE‐Ready Outlet or
EVSE Installed is required.
(d) Location. The EVSE, receptacles, and/or raceway required by this section
shall be placed in locations allowing convenient installation of and access to
EVSE. Location of EVSE or receptacles shall be consistent with all City
guidelines, rules, and regulations.
A5.106.5.3.3 Hotels. The following standards apply newly constructed hotels.
ATTACHMENT A
NOT YET ADOPTED
5
(a) In general. The property owner shall provide Conduit Only, EVSE‐Ready
Outlet, or EVSE Installed for at least 30% of parking spaces, among which at
least 10% (and no fewer than one) shall be EVSE Installed.
(b) Accessible spaces. The percentage calculations and substantive
requirements imposed by this section shall be applied separately to
accessible parking spaces. Parking at accessible spaces where an EVSE is
installed shall not be limited to electric vehicles.
(c) Minimum total circuit capacity. The property owner shall ensure sufficient
circuit capacity, as determined by the Chief Building Official, to support a
Level 2 EVSE in every location where Circuit Only, EVSE‐Ready Outlet or
EVSE Installed is required.
(d) Location. The EVSE, receptacles, and/or raceway required by this section
shall be placed in locations allowing convenient installation of and access to
EVSE. Location of EVSE or receptacles shall be consistent with all City
guidelines, rules, and regulations.
SECTION 4. If any section, subsection, clause or phrase of this Ordinance is for any
reason held to be invalid, such decision shall not affect the validity of the remaining portion or
sections of the Ordinance. The Council hereby declares that it should have adopted the
Ordinance and each section, subsection, sentence, clause or phrase thereof irrespective of the
fact that any one or more sections, subsections, sentences, clauses or phrases be declared
invalid.
SECTION 5. The Council finds that this project is exempt from the provisions of the
California Environmental Quality Act (“CEQA”), pursuant to Section 15061 of the CEQA
Guidelines, because it can be seen with certainty that there is no possibility that the ordinance
will have a significant effect on the environment.
//
//
//
//
//
//
ATTACHMENT A
NOT YET ADOPTED
6
SECTION 6. 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:
____________________________ ____________________________
City Attorney City Manager
____________________________
Director of Development Services
____________________________
Director of Administrative Services
1
Attachment
B:
EVSE
Cost
Analysis
The
EVSE
Task
Force
has
developed
a
cost
analysis
and
assumptions
for
the
application
of
the
proposed
ordinance.
The
cost
assumptions
include
basic
materials
and
installation
cost
as
provided
by
industry
experts
and
advocates
in
the
EVSE
Task
Force.
The
estimated
costs
for
typical
construction
activities
related
to
EVSE
installation
are
listed
in
Figure
1-‐1.
The
costs
listed
address
the
following
items;
conduit
material
(also
called
“raceway”),
wiring
material,
electric
panel
circuits,
protective
circuit
materials,
and
charger
technology.
The
cost
estimates
also
include
the
labor
associated
with
installation.
Figure
1-‐1:
EVSE
Cost
Analysis
A.
Estimated
costs B.
Economies-‐of-‐scale
for
co-‐located
parking
(Percent
Reduction
By
#
of
Installations)
Item Ave.Low High 2 5 20
Basic
Materials
100'
of
raceway
for
one
parking
spot
-‐
materials $214 $170 $235 0%10%20%
Installation
of
100'
of
raceway
only $646 $515 $710 0%0%0%
100'
of
240V/
50A
wiring
for
one
parking
spot
-‐
materials
only $186 $170 $205 0%10%20%
Installation
of
100'
of
wiring
only $450 $360 $495 0%0%0%
Installation
of
100'
of
raceway
&
wiring-‐
(material
and
install)$1,557 $1,401 $1,713 0%10%15%
Panel
capacity
supporting
one
240V/50A
circuit
(per
circuit)$400 $390 $440 0%10%20%
Protective
requirements
per
240V/50A
circuit
(disconnect)$450 $360 $500 0%10%20%
EVSE
Equipment
Basic
single-‐head
Level
2
charger
(Non-‐network
EVSE
single
head)$1,000 $800 $1,500
Fully
featured
single-‐head
Level
2
charger
(Networked
EVSE
single
head)$6,000 $5,000 $8,000
Basic
dual-‐head
Level
2
charger
(Non-‐network
EVSE
Double
Head)$2,000 $1,500 $3,000
Fully
featured
dual-‐head
Level
2
charger
(Networked
EVSE
Double
Head)$7,500 $5,500 $8,000
2
The
cost
estimation
from
Figure
1-‐1
has
been
applied
to
a
typical
commercial
construction
scenario
and
is
illustrated
in
Figure
1-‐2.
The
numbers
highlighted
with
a
bold
box
have
been
used
to
populate
the
cost
scenario.
The
example
new
commercial
office
building
is
shown
in
Figure
1-‐2.
This
scenario
assumes
a
30,000
square-‐foot
construction
scope.
For
this
scope,
the
electric
vehicle
requirement
includes
5
fully
functional
EVSE
spaces
and
20
conduit-‐only
spaces.
The
estimate
also
includes
the
city
permit
fees
for
installation.
The
overall
new
construction
cost
for
Figure
1-‐2
is
estimated
at
$250
per
square
foot
totaling
$7,500,000.
This
estimate
was
obtained
from
Reed
Construction
Data,
an
industry
standard
source
for
cost
estimating.
The
estimated
EV
cost
for
the
commercial
scenario
is
$57,817.
The
estimated
EV
cost
would
increase
the
overall
cost
to
the
project
by
0.8%.
Figure
1-‐2
New
Commercial
Construction
EVSE
Cost
Analysis
Scenario
3
The
cost
estimation
from
Figure
1-‐1
has
been
applied
to
typical
multi-‐family
construction
project
and
is
illustrated
in
Figure
1-‐3.
This
scenario
assumes
a
30-‐unit,
30,000
square-‐foot,
new
construction
project
with
55
resident
parking
spaces
and
10
guest
parking
spaces.
The
estimate
also
includes
the
city
permit
fees
for
installation.
The
overall
new
construction
cost
for
Figure
1-‐3
is
estimated
at
$300
per
square
foot
totaling
$9,000,000.
This
estimate
was
obtained
from
Reed
Construction
Data,
an
industry
standard
source
for
cost
estimating.
The
estimated
EV
cost
for
the
new
multi-‐family
scenario
is
$81,008.
The
estimated
EV
cost
would
increase
the
overall
cost
to
the
project
by
0.9%.
Figure
1-‐3
New
Multi-‐Family
Residential
-‐
EVSE
Cost
Analysis
Scenario
The
EV
Task
force
has
also
discussed
the
revenue
generation
associated
with
the
installation
of
EVSE.
In
the
case
of
EVSE
with
simple
technology,
the
charging
station
only
allows
for
no-‐cost
charging
by
the
EVSE
owner.
In
the
case
of
more
advanced
EVSE
technology,
the
equipment
owner
may
elect
to
require
a
fee
for
use
of
the
charging
station.
In
either
condition,
the
potential
revenue
created
from
EVSE
owners
should
be
considered
when
analyzing
the
cost
analysis
and
payback
period
of
EVSE.
City of Palo Alto
COLLEAGUES MEMO
June 16, 2014 Page 1 of 2
(ID # 4865)
DATE: June 16, 2014
TO: City Council Members
FROM: Council Member Holman, Council Member Klein, Council Member
Schmid, Council Member Berman
SUBJECT: COLLEAGUES' MEMO REGARDING LOCAL ANIMAL SERVICES
Goal:
Continue to provide animal services locally with improved economies and an improved facility.
Background and Discussion:
Palo Alto has had local community animal services since 1908 when the Palo Alto Humane
Society was founded. The Humane Society started the first animal shelter in town in 1927. They
managed the shelter until 1972 when the operation was taken over by the City and Palo Alto
Animal Services was formed. Animal Services currently offers spay and neuter, adoption,
licensing, lost and found, and rescue services to the Palo Alto, Los Altos, and Los Altos Hills
communities.
With Mt. View’s decision in 2012 to end its partnership with the City’s Animal Services,
an annual $470,000 funding gap threatened the closure of the local facility. The community
made its desire to keep animal services in Palo Alto known by crowding Council Chambers with
supporters. As part of the adoption of the Fiscal Year 2013 Budget, the Council, after
recommendations by both the Policy & Services and Finance Committees, directed staff to
increase revenue by approximately $185,000 annually and reduce costs by approximately
$285,000 a year for FY 2013 with goals for further revenue increases and reduced expenses, to
close the gap caused by Mountain View’s departure to totally eliminate the amount paid by
the City for Animal Services by Fiscal Year 2016.
Palo Alto Humane Society has put together a proposal to form a public–private partnership with
the City. The Humane Society proposes to fundraise to build a new, state-of-the-art animal
services center for Palo Alto and manage the new facility with enhanced services at lower cost
to the City. According to the proposal, the City would continue to provide the land as well as
manage animal control as it does currently. The new facility and additional services that are
being proposed could potentially be a means to attract adjacent communities who now
June 16, 2014 Page 2 of 2
(ID # 4865)
contract as far away as San Martin, a distance creating real challenges to reuniting owner and
pet.
According to the proposal, public-private projects, such as Palo Alto Humane Society is coming
forward with have proven to be successful endeavors in other communities “nationwide and in
neighboring Peninsula communities”.
Recommendation:
We recommend that the Council forward the Proposal from Palo Alto Humane Society to the
Finance or Policy & Services Committee as Council determines for prompt review
Staff Input/Impact
Over the past two years, staff has engaged the regional animal care community to identify
improvements to the efficiency of shelter operations and explore potential partnership
opportunities. Through this process several high-level conversations have taken place with
various entities about potential public-private partnerships ranging from collaboration on
animal adoptions to assistance with shelter management. There is a strong interest from the
non-profit animal care community in partnering with the City to ensure the long-term viability
and success of Palo Alto Animal Services. In addition, several current and near-term operational
challenges, including declining revenues and pending key staff retirements, have created a need
to explore immediate solutions for a shelter management partnership with possible partners.
Given the interest from potential partners, current operational needs, and staff’s belief that
there are possible coalitions to be formed among the interested parties, staff was looking at
issuing an RFP for on-going management of the shelter in the near term with additional options
for capital improvement partnerships.
The FY 2014 expected General Fund subsidy is approximately $850,000, primarily due to
regional contracts revenue adjustments and the year-long absence of the public spay and
neuter clinic due to staff vacancies.
The Humane Society Proposal discussion may occur in the context of other alternatives to put the
Animal Shelter on sustainable footing.
Minimal staff impact at this time.
October 2013
Proposal to the City of Palo Alto
From the Palo Alto Humane Society
Regarding the future of Palo Alto Animal Services
The Palo Alto Humane Society proposes a joint public–private partnership for the provision
of animal services for Palo Alto and contracting cities. The Palo Alto Humane Society, as the
private partner, would bring services and added value to the City of Palo Alto as outlined
below. The Palo Alto Humane Society regards this as an opportune time for a proposal to
partner and pool animal-welfare resources as the City begins to weigh decisions on capital
improvements to and location of its Animal Services facility.
The Palo Alto Humane Society (PAHS) makes the following proposal for a public–private
partnership. The proposal is designed to enhance the services presently provided to the
community and is built on the precept that animal sheltering and animal control services must
remain located in Palo Alto to best serve the community. PAHS is also willing to discuss other
ideas in order to find a partnership that is right for both parties and the communities served. In
broad outlines, PAHS proposes:
To build a new, state-of-the-art animal services center for Palo Alto. The Palo Alto Humane Society
would fund the construction of a state-of-the-art facility and would subsequently manage
the shelter and provide related community services and outreach; such services in addition
to animal sheltering would include dog training, dog park recreation, an education center
and programs, housing for special needs animals, a spay-neuter clinic, and a wellness clinic.
PAHS estimates the cost of a new center for animal services at $10–$12 million, to be
raised by PAHS. The City would provide the land as it does currently; the suggested
footprint for the facility would be two acres. In the partnership, the City would continue to
fund and manage mandated animal control services.
A new approach to animal services. Private–public partnerships now undergird animal
services in many communities nationwide and in neighboring Peninsula communities. These
partnerships have created community centers that draw and engage the public, encourage
adoptions, and keep animal surrenders to a minimum. Dog training, dog parks, behaviorists,
education programs, and modern sheltering facilities all add value to the life of a community
and promote the well being of a community’s animals. The Palo Alto Humane Society is
interested in offering these proven added-value aspects to the Palo Alto community. PAHS
wants to create an exciting place in Palo Alto that parallels centers in other communities and
shines as a civic centerpiece for the City. The residents have shown their passion for animal
welfare and would welcome a new and exciting vision for their shelter.
What the Palo Alto Humane Society can offer in a public–private partnership. PAHS
can bring resources and vision to a partnership for a new shelter. PAHS is an established
community organization and can bring name recognition and 100 years of history to bear in
harnessing resources. Its animal shelter committee consists of proven Bay Area shelter
builders and fundraising professionals. PAHS has unique programs in veterinary assistance;
annually PAHS underwrites the spaying and neutering of approximately 2,000 homeless
animals and pets belonging to financially disadvantaged people, and assists pet owners on
fixed incomes with management of veterinary expenses. PAHS provides humane education
to the public schools through its longstanding “Animals Everywhere” program and its new
“Mow Wow Animals” (www.mowwow.org) curriculum designed to aid teachers in
October 2013
complying with the character education goals of the California Education Code. PAHS also
provides a voice for animals, most recently advocating successfully to the City Council on
behalf of the city animal shelter and spay-neuter clinic to prevent closure and outsourcing of
these vital public services.
Benefits to the City of Palo Alto. A major benefit to the City is that PAHS can run the
sheltering function at lower cost, as PAHS is not subject to the City’s salary structure. In
addition, the cost of mandated sheltering services would be predictable, with a contracted fee
with set review and increase points, making budgeting much easier for the City. Another
advantage to the City is that this partnership would play on each organization's areas of
strength. PAHS is better able to handle sheltering and animal care, while the City is better able
to perform the animal control function, given its strength in law and code enforcement.
An exciting synergy. Together the City and the Palo Alto Humane Society can offer much
more than we can separately. PAHS has the vision, expertise, and fundraising capacity for
additional services, and the City has the land for a shelter and the expertise and funding for
animal control services. Through partnership, a modern, state-of-the-art animal services
center can be built that serves as a thriving civic institution for the community. The City of
Palo Alto has successful public–private partnerships in various aspects of its services and
operations. These partnerships have proven to be viable, and PAHS proposes that a joint
effort in animal sheltering will bring current animal services up to the level of other services.
An established tradition. A partnership between the Palo Alto Humane Society and the
City of Palo Alto is not a new idea. The Palo Alto Humane Society has deep roots in the
community and a history of program building. Founded in 1908, PAHS created Palo Alto’s
first shelter in 1927 and subsequently managed shelters for the City for close to 50 years.
After the establishment of Palo Alto Animal Services, PAHS continued its relationship with
the City and for many years provided humane education and night and weekend emergency
animal services. Presently, PAHS maintains a close relationship with Animal Services and is a
major client at the spay-neuter clinic. PAHS is a major resource for animal welfare in the
Palo Alto community.
Going forward. The Palo Alto Humane Society requests the opportunity to present and
discuss this proposal with Council members and staff. PAHS is excited about the
possibilities and believes the Palo Alto community will be supportive of such a venture.
Please note that this proposal is for purposes of discussion. It is not an offer of any kind
and is non-binding in all respects.
Submitted by: Carole Hyde, Executive Director, Palo Alto Humane Society
Contact information: Office: 650-424-1901; carole.hyde@paloaltohumane.org