HomeMy WebLinkAbout2013-09-16 City Council Agenda PacketCITY OF PALO ALTO
CITY COUNCIL Special Meeting
Council Chambers
September 16, 2013
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 September 16, 2013
MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA
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DURING NORMAL BUSINESS HOURS.
PUBLIC COMMENT
Members of the public may speak to agendized items; up to three minutes per speaker, to be
determined by the presiding officer. If you wish to address the Council on any issue that is on this
agenda, please complete a speaker request card located on the table at the entrance to the Council
Chambers, and deliver it to the City Clerk prior to discussion of the item. You are not required to give
your name on the speaker card in order to speak to the Council, but it is very helpful.
TIME ESTIMATES Time estimates are provided as part of the Council's effort to manage its time at Council meetings.
Listed times are estimates only and are subject to change at any time, including while the meeting is
in progress. The Council reserves the right to use more or less time on any item, to change the order
of items and/or to continue items to another meeting. Particular items may be heard before or after
the time estimated on the agenda. This may occur in order to best manage the time at a meeting or
to adapt to the participation of the public. To ensure participation in a particular item, we suggest
arriving at the beginning of the meeting and remaining until the item is called.
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
1. CONFERENCE WITH LABOR NEGOTIATORS
City Designated Representatives: City Manager and his designees
pursuant to Merit System Rules and (James Keene, Pamela Antil,
Lalo Perez, David Ramberg, Joe Saccio, Kathryn Shen, Sandra Blanch,
Dania Torres Wong, Val Fong, Marcie Scott, Brenna Rowe,
Molly Stump)
Employee Organization: Service Employees International Union,
(SEIU) Local 521
Authority: Government Code Section 54957.6(a)
Study Session 6:00-7:00 PM
2. Potential List of Topics for the Study Session With Assemblyman Rich
Gordon
2 September 16, 2013
MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA
PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE.
DURING NORMAL BUSINESS HOURS.
Special Orders of the Day 7:00-7:10 PM
3. Presentation of $1.2 Million Donation Check from the Palo Alto Library
Foundation to the City of Palo Alto
Agenda Changes, Additions and Deletions
City Manager Comments 7:10-7:20 PM
Oral Communications 7:20-7:35 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 7:35-7:40 PM
August 12, 2013
Consent Calendar 7:40-7:45 PM
Items will be voted on in one motion unless removed from the calendar by three Council Members.
4. Adoption of Budget Amendment Ordinance to Appropriate the State
Homeland Security Grant Program Funds for Blue Card Command and
Control Certification
5. Approval of Amendment No. 1 to Contract C13149552 with Turner
Construction Company to Increase Compensation by $785,000 for a
Total Amount Not-to -Exceed $1,485,000 for Additional Construction
Management Services for the Mitchell Park Library & Community
Center Project
6. Approval of Amendment No. 1 to Contract No. C12144101 with WMB
Architects, Inc. in the Amount of $105,974 for a Total Not-to-Exceed
Amount of $284,691 for Design of Improved Public Lobby and Meeting
Spaces and Consolidation of Utilities Customer Service Functions on
the First Floor as Part of the City Hall First Floor Renovations Capital
Improvement Program Project PE-12017
7. Approval of Amendment No. 20 to Contract No. S0114750 With The
Peninsula Corridor Joint Powers Board for Rail Shuttle Bus
Administration to Extend the Term for Six Months and Add $26,684 for
a Total Not To Exceed Amount of $2,903,928
3 September 16, 2013
MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA
PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE.
DURING NORMAL BUSINESS HOURS.
8. Adoption of a Resolution Approving the 2014 Municipal Fee Schedule
Amendments
9. Approval of Utilities Enterprise Fund Construction Contract No.
C141541174 with DN Tanks, Inc. In a Not to Exceed Amount of
$340,000 for Repairs at Mayfield Reservoir
10. Confirmation of Appointment of Hillary Gitelman as Director of
Planning and Community Environment
Action Items
Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials,
Unfinished Business and Council Matters.
7:45-9:15 PM
11. Review of Preliminary Economic Analysis Report for a Planned
Community (PC) Rezoning to Accommodate: 1) Four-Story Office
Development at 395 Page Mill Road and; 2) Three-Story Public Safety
Building with Attached Six-Level Parking Structure Located at 3045
Park Boulevard
9:15-10:15 PM
12. Colleague’s Memo From Mayor Scharff, Vice Mayor Shepherd, Council
Members Kniss and Price Regarding Palo Alto Traffic Demand
Management Plan
10:15-10:45 PM
13. Approval of City of Palo Alto's Response to the 2012-2013 Santa Clara
County Civil Grand Jury Report - "The State of Public Safety Disability
Retirement Rates In The County"
Council Member Questions, Comments and Announcements 10:45-11:00 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.
4 September 16, 2013
MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA
PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE.
DURING NORMAL BUSINESS HOURS.
Additional Information
Standing Committee Meetings
City/School Meeting September 16, 2013
Technology and the Connected City September 17, 2013
Finance Committee September 17, 2013
Schedule of Meetings
Schedule of Meetings
Tentative Agenda
Tentative Agenda
Informational Report
Significant Gifts to the City, FY 2013
Update on the Budget and Schedule for Technical Analysis of Hazardous
Materials Implications for Zoning at Industrial Locations and for Plating Shop
Operations at Communications and Power Industries (CPI) at 611 Hansen
Way
Update on the Embarcadero Road Corridor Study Between Palo Alto High
School Pedestrian Crossing and El Camino Real
Public Letters to Council SET 1 SET 2
CITY OF PALO ALTO OFFICE OF THE CITY CLERK
September 16, 2013
The Honorable City Council
Palo Alto, California
Potential List of Topics for the Study Session With Assemblyman Rich
Gordon
1. End of Session Wrap Up (Assemblyman Gordon)
2. Insight into City of Palo Alto’s High Priority Bills of Interest (see at Places Memo as to
Status)
3. CEQA Reform Legislation
4. Status of Housing Element Reform (HCD/ABAG)
5. Legislation to Reduce Voter Approval Thresholds for Infrastructure Projects
6. Caltrain Electrification Process (now underway)
7. Current State of High-Speed Rail and Impact of Kinney ruling.
8. Preserving Local Control (Note: Above average number of bills introduced this year
(such as SB7 Prevailing Wage, SB311 Local Election, Charter Amendments, AB325
Housing Element Litigation, SB562 Economic Development Subsidies, SB537 Impasse
Procedures, etc. taking away local control) /Trend in Coming Years?
9. Looking Ahead to the 2014 Legislative Session - Challenges and Opportunities
Note of thanks: On January 24 2013, staff met with Assembly Member Gordon to explore
potential legislation for the 2013 State legislative session. One topic of discussion included
assistance in securing postponement of State landfill capping requirements for a limited time
while the City evaluates a potential Energy/Compost facility. The regulatory agencies have come
up with a far less expensive (but equally effective) type of landfill cap for the City. The City no
longer needs to seek postponement of the cap for the sake of the Energy Compost Facility.
Assembly Member Gordon was instrumental in helping to find this "win-win" solution as he met
with the State Agencies and City staff and helped the regulatory agencies see the importance of
this issue. We greatly appreciate his efforts!!!
Department Head: Donna Grider, City Clerk
Page 2
City of Palo Alto (ID # 4092)
City Council Staff Report
Report Type: Special Orders of the Day Meeting Date: 9/16/2013
City of Palo Alto Page 1
Summary Title: Presentation of Donation Check from the Palo Alto Library
Foundation
Title: Presentation of $1.2 Million Donation Check from the Palo Alto Library
Foundation to the City of Palo Alto
From: City Manager
Lead Department: Library
Susie Thom, President of the Palo Alto Library Foundation (PALF), will present a check for $1.2
million to the City. This donation will pay for furniture, technology, and additional collection
materials needs at the renovated Main Library, the third and last library of the Measure N
building projects. PALF met their $4 million goal for the Launch Our Libraries fundraising
campaign in April 2013.
City of Palo Alto (ID # 4050)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 9/16/2013
City of Palo Alto Page 1
Summary Title: Approve BAO for State Homeland Security Grant
Title: Adoption of Budget Amendment Ordinance to Appropriate the State
Homeland Security Grant Program Funds for Blue Card Command and Control
Certification
From: City Manager
Lead Department: Fire
Recommendation
Staff recommends Council adopt a Budget Amendment Ordinance to Appropriate the State
Homeland Security Grant Program grant funds for Blue Card Command and Control
Certification.
Discussion
Santa Clara County Fire Chiefs Training and Operations Officers have been awarded grant
funding from the State Homeland Security Grant Program (SHSGP) to support Incident
Commander verification for the Blue Card Command Certification System. Blue Card is a
command and control system that was developed by the Phoenix Fire Department for all
hazard zone management and is now marketed internationally as a leading Incident Command
training program. The training consists of a 50-hour online course followed by a 24-hour
simulation. Palo Alto received funding to support the training of 44 personnel, which includes
current Battalion Chiefs, Captains, and Acting Captains. There is continuing education training
required to maintain the certification including on-going simulator practice and real-life
incidents; all certification maintenance training will be absorbed by the Department’s existing
training budget. Each agency under the grant agreement is required to process their training
registrations individually and subsequently will receive reimbursement from the State
Homeland Security Grant Program.
Resource Impact
Total funding available to the City through this grant is $16,940. The City of Palo Alto will be
reimbursed by the State Homeland Security Grant Program for grant-related expenditures
City of Palo Alto Page 2
during the term of the grant agreement. Staff is requesting approval of a BAO in the amount of
$16,940 to be offset by corresponding grant revenues.
Policy Implications
The recommendations in this report do not represent a change in City policies.
Environmental Review
The recommendation in this report does not constitute a project requiring review under the
California Environmental Quality Act (CEQA).
Attachments:
ATTACHMENT A - Budget Amendment Ordinance HSGP (PDF)
ATTACHMENT B - FY12 HSGP (PDF)
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 $16,940 FOR INCIDENT
COMMAND TRAINING FOR FIRE DEPARTMENT PERSONNEL, AND
TO INCREASE THE ESTIMATE FOR LOCAL REVENUE IN THE
AMOUNT OF $16,940 TO REFLECT GRANT FUNDS TO BE
RECEIVED FROM THE COUNTY OF SANTA CLARA
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 Federal Department of Homeland Security, through
the State Homeland Security Grant Program, has awarded funding
to the State of California for a number of grant programs; and
C. The State of California, as grantee, has awarded
funding to designated Operational Areas within the state, of
which the County of Santa Clara is one; and
D. The County of Santa Clara has allocated funding from
the State Homeland Security Grant Program for the City of Palo
Alto for incident command training for Fire Department
personnel which will enhance the Department’s management of
emergency incidents within the City; and
E. Sixteen Thousand Nine Hundred Forty Dollars ($16,940)
is available based on notification from the County of Santa
Clara; and
F. City Council authorization is needed to amend the
Fiscal Year 2014 Operating Budget as hereinafter set forth.
SECTION 2. The sum of Sixteen Thousand Nine Hundred Forty
Dollars ($16,940) is hereby appropriated for Incident Command
Training in the Fire Department and the estimate for Local
Revenue is correspondingly increased.
SECTION 4. As specified in Section 2.28.080(a) of the
Palo Alto Municipal Code, a two-thirds vote of the City
Council is required to adopt this ordinance.
SECTION 5. As provided in Section 2.04.330 of the Palo
Alto Municipal Code, this ordinance shall become effective
upon adoption.
SECTION 6. 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
Page 1 of 9 Agreement between the County of SC and City of Palo Alto
Granting Funds for 2012 Homeland Security Grant Programs
AGREEMENT BETWEEN THE COUNTY OF SANTA CLARA AND THE CITY OF PALO ALTO GRANTING PROGRAM FUNDS FOR THE
DISTRIBUTION OF 2012 HOMELAND SECURITY GRANT PROGRAM FUNDS
This agreement is made October 12, 2012, by and between the County of Santa Clara (County) and
the City of Palo Alto (City) for the distribution of 2012 Homeland Security Grant Program Funds.
RECITALS
WHEREAS, the 2012 Homeland Security Grant Program is made up; the State Homeland Security
Program (SHSP, CFDA #97.067); and
WHEREAS, the SHSP Program supports the implementation of State Homeland Security
Strategies to address the identified planning, organization, equipment, training, and exercise needs
for acts of terrorism and other catastrophic events. In addition, SHSP supports the implementation
of the National Preparedness Guidelines, the National Incident Management System (NIMS), and
the National Response Framework (NRF);
WHEREAS, the State has designated the County of Santa Clara as the Operational Area for
purposes of distributing SHSP Grant funds to the cities, special districts and other entities within
the County. An Anti-Terrorism Approval Body (County Approval Authority) has been appointed
for the purpose of approving the distribution of SHSP funds at the Operational Area level;
WHEREAS, on October 12, 2012 the California Emergency Management Agency awarded the
County a 2012 Homeland Security Grant of $1,415,843. The allocation of the SHSP grant funds
$1,415,843, will be determined by the County Approval Authority in accordance with the grant
guidelines; and
NOW THEREFORE, the parties agree as follows:
THE AGREEMENT
Article I. Payment
1. Payment Eligibility
Unless otherwise approved in advance by the Santa Clara County OES Grants
Administrator (hereinafter “grants administrator”), only an actual cash disbursement by the
City for a claimed expense is eligible for reimbursement by the County as approved and
specified in Exhibit A, SHSP Project Funding, which is attached and hereby incorporated
into this Agreement.
2. Amount of Payment
The County will provide the City, unless otherwise specified, with the equipment, supplies
and/or other resources as set forth in Exhibit A, SHSP Project Funding. Specifications for
such equipment shall be provided by the City’s requesting agency to the County for the
appropriate procurement process. City’s requesting agency will be notified when the
Page 2 of 9 Agreement between the County of SC and City of Palo Alto
Granting Funds for 2012 Homeland Security Grant Programs
procurement process is complete for final approval of equipment prior to the order being
placed. If, through previous agreement with the County, the City is to procure its own
equipment, performance milestone dates will apply (refer to Article II, Section 3(a)).
The County may reallocate SHSP funds as specified in Article 1, section 3 of this
Agreement. County does not guarantee a minimum payment to the City.
Funds in the amount of $100,000 have been set aside for the training program from the
total Homeland Security grant to be allocated during the term of this Agreement. The
Office of Emergency Services will allocate training funds to agencies as determined by the
Training/Exercise Advisory Group.
Authorized personnel budgets are allowable within the Sheriff’s Office, County Office of
Emergency Services, Central Fire, and Public Health Emergency Medical Services. The
personnel budget for these departments will reflect the expenditure authority.
Reimbursement for actual cash disbursements will be requested through the County Office
of Emergency Services. Based on the preference of the Department/Agency,
reimbursement requests may be requested on a monthly or quarterly basis. For County
Departments, reimbursement will be made via inter-county transfer. For all others, a
county warrant will be issued.
3. Maximum Amount Payable
Subject to the availability of funds and the priorities established by the Approval
Authority, the maximum amount of SHSP Grant funds payable by the County to the City
under this Agreement must not exceed the total amount of the 2012 Homeland Security
Grant as allocated by the County Approval Authority.
4. Reallocation of SHSP Grant Funds
For the purpose of maximizing the resources available for disaster preparedness within the
Operational Area, the City agrees that the County Approval Authority may reallocate funds
under this agreement to the City or to another applicant if County determines that a City is
unable to utilize the amount allocated under this Agreement. County may base its
determination on factors that include, but are not limited to the following: delivery
timelines, fund expenditure capabilities, and timeliness of expenditure. County will notify
the City in writing of any determination to reallocate funds, by issuing a “Notice of
Reallocation.” SHSP funds will be put forth to the County Approval Authority for
reallocation. The City agrees that the County has the authority to increase or decrease the
maximum amount payable under this Agreement as specified in the Notice of Reallocation
document without liability and County has the authority to amend Exhibit A, “SHSP
Project Funding,” accordingly. Upon issuance, the Notice of Reallocation will
automatically become part of this Agreement.
Page 3 of 9 Agreement between the County of SC and City of Palo Alto
Granting Funds for 2012 Homeland Security Grant Programs
Article II. Use of Funds.
1. Scope of Services
(a) If the City has been allocated funding for a project, Exhibit A, “SHSP Project
Funding,” will serve as the basis for the project. A further detailed description may be
necessary and will be requested by the County if needed to be incorporated by reference
herein. If future funding is allocated, the City will provide a detailed description of the
approved project to be attached hereto and incorporated by reference herein.
(b) The City will use the funds granted under this Agreement only for the purpose of
obtaining equipment, training and exercise and implementing applicable programs
authorized under the 2012 Homeland Security Grant Program.
(c) The City will use funds and equipment granted under this Agreement in a manner
consistent with:
1. the applications submitted by the County to the State for the grant under this
Agreement;
2. the grant guidance issued by the State for the grant under this Agreement; and
3. the notifications issued by the State of the approval of the grant under this
Agreement.
(d) The documents described in Article II 1(c) (1)-(3) of this Agreement (collectively
the “State Grant Requirements”) are on file with the County and the granting
agencies of the State, and are hereby incorporated into this Agreement. The City
hereby acknowledges that it has received a copy of the State Grant Requirements.
2. Master Grant Obligations
(a) The City agrees to comply with all applicable requirements and assurances contained
in the State Grant Requirements and attached as Exhibit B, “Grant Assurances”. The
City may designate vendors or sub-recipients to fulfill these obligations, including all
State Grant Requirements and Grant Assurances.
(b) If any provisions of this Agreement conflict with the State Grant Requirements,
the provisions of the State Grant Requirements will control.
(c) The City shall establish and maintain administrative, programmatic and fiscal
management records in accordance with federal and state requirements, and:
1. Maintain financial management systems that support grant activities in accordance
with federal and state requirements, including but not limited to requirements in 44
Code of Federal Regulations (“C.F.R.”) Part 13.20, and the Office of Justice
Programs Financial and Administrative Guide for Grants, Part II, Chapter 3.
Page 4 of 9 Agreement between the County of SC and City of Palo Alto
Granting Funds for 2012 Homeland Security Grant Programs
2. The County of Santa Clara will provide and affix equipment tracking numbers for
all equipment purchased through our procurement process. Using the County
issued tracking number, the City/Town will maintain an equipment tracking ledger
that tracks the equipment within their City/Town and complies with federal and
state requirements, including but not limited to requirements in 44 C.F.R. Parts
13.32 and 13.33, and the Office of Justice Programs Financial and Administrative
Guide for Grants, Part III, Chapter 6.
(d) The City will ensure that any sub-recipients or contractors with which the
City enters any agreement comply with the certification requirements under 44 C.F.R.
Part 13.35, “Sub-Awards to Debarred and Suspended Parties.”
3. Performance and Reporting Requirements
(a) If previously approved by the County and the City is conducting the purchasing
process, the City will comply with the performance milestone dates as indicated
on Exhibit A, “SHSP Project Funding.”
(b) Performance reports, indicating the status of outstanding projects are due to the County
Grants Administrator identified in Article V, Section 1 as follows:
(c) The following dates represent the Grant Performance Period for the SHSP Program;
• Performance Period 1 (October 12, 2012 – December 31, 2013) – due by
January 15, 2014
• Performance Period 2 (January 1, 2014 – March 31, 2014) – due April 15,
2014
(d) The County will provide the City with a report template (Exhibit C, “Performance
Report”), and the City will utilize the template to complete the performance submittal
to the County.
(e) Payments made by County to the City are conditioned upon the timely receipt of
applicable, accurate and complete reports, including supporting documents, to be
submitted by the City.
(f) The City will notify the County representative identified in Article V, Section 1, within
15 days, when the City has completed all performance obligations for these grants.
(g) City will provide single audit reports to County by July 31st of every fiscal
year.
4. Disallowances
(a) Unless otherwise approved in advance by Grants Administrator, the County will not
process any claims for reimbursement submitted by City without proof of actual cash
Page 5 of 9 Agreement between the County of SC and City of Palo Alto
Granting Funds for 2012 Homeland Security Grant Programs
disbursement by City for expenses claimed.
(b) During the term of this Agreement, County is not obligated to honor any claim for payment
that is submitted more than three months following the date of the service for which
payment is requested.
(c) All requests for reimbursement must be submitted by April 30, 2014. County will not
process any claims submitted after this date.
Article III. Term and Termination.
1. Term of Agreement
This Agreement is effective from October 12, 2012 to March 31, 2014.
2. Termination
(a) Either party may terminate this Agreement for cause upon written notice to
the other. Cause includes, but is not limited to a material breach of this Agreement, or
a violation of any applicable laws.
(b) Opportunity to cure. The non-breaching party will give written notice of the
breach to the breaching party, specifying the breach. The breaching party will not be
deemed in default hereunder and the non-breaching party will not institute proceedings
or exercise any remedies against the breaching party unless the breach has not been
cured, corrected or remedied within thirty (30) days after the giving of such notice of
breach or within such longer period as may be reasonably required to cure, correct or
remedy the breach, provided the breaching party has commenced such cure, correction
or remedy within such thirty (30) day period and diligently and continuously pursues
such cure, correction or remedy.
(c) If this Agreement is terminated, the City will return funding in accordance
with grant guidelines.
(d) Budget Contingency
This Agreement is contingent upon the appropriation of sufficient funding by the state
and County for the services covered by this Agreement. If funding is reduced or
deleted for the services covered by this Agreement, the County has the option to either
terminate this Agreement with no liability occurring to the County or to offer an
amendment to this Agreement indicating the reduced amount.
Page 6 of 9 Agreement between the County of SC and City of Palo Alto
Granting Funds for 2012 Homeland Security Grant Programs
Article IV. Liabilities.
1. Mutual Indemnification
In lieu of and notwithstanding the pro rata risk allocation which might otherwise be
imposed between the parties pursuant to Government Code Section 895.6, the parties agree
that all losses or liabilities incurred by a party shall not be shared pro rata but instead the
County and the City agree that pursuant to Government Code Section 895.4, each of the
parties hereto shall fully indemnify and hold each of the other parties, their officers, board
members, employees and agents, harmless from any claim, expense or cost, damage or
liability imposed for injury (as defined by Government Code Section 810.8) occurring by
reason of the negligent acts or omissions or willful misconduct of the indemnifying party,
its officers, board members, employees or agents, under or in connection with or arising
out of any work, authority or jurisdiction delegated to such party under this Agreement.
No party, nor any officer, board member, employee or agent thereof shall be responsible
for any damage or liability occurring by reason of the negligent acts or omissions or willful
misconduct of other parties hereto, their officers, board members, employees or agents,
under or in connection with or arising out of any work, authority or jurisdiction delegated
to such other parties under this Agreement.
Article V. Miscellaneous.
1. Notice
All notices required by this Agreement will be deemed given when in writing and
delivered personally or deposited in the United States mail, postage prepaid, addressed to
the other party at the address set forth below or at such other address as the party may
designate in writing:
To the City:
City Manager’s Office
City of Palo Alto
250 Hamilton Avenue
Palo Alto, CA 94301
To the County:
Melissa Erickson, Grants Administrator
County of Santa Clara, Office of Emergency Services
55 W. Younger Ave., Suite 450
San Jose, CA 95110
2. Compliance and Nondiscrimination
The parties will comply with all applicable Federal, State, and local laws and regulations.
Such laws include but are not limited to the following: Title VII of the Civil Rights Act of
1964 as amended, the Americans with Disabilities Act of 1990, the Rehabilitation Act of
Page 7 of 9 Agreement between the County of SC and City of Palo Alto
Granting Funds for 2012 Homeland Security Grant Programs
1973 (Sections 503 and 504), the California Fair Employment and Housing Act
(Government Code sections 12900 et seq.), and California Labor Code sections 1101 and
1102. The parties will not discriminate against any subcontractor, employee, or applicant
for employment because of age, race, color, national origin, ancestry, religion, sex/gender,
sexual orientation, mental disability, physical disability, medical condition, political
beliefs, organizational affiliations, or marital status in the recruitment, selection for
training including apprenticeship, hiring, employment, utilization, promotion, layoff, rates
of pay or other forms of compensation. Nor will the parties discriminate in the provision of
services provided under this Agreement because of age, race, color, national origin,
ancestry, religion, sex/gender, sexual orientation, mental disability, physical disability,
medical condition, political beliefs, organizational affiliations, or marital status.
3. County No-Smoking Policy
Contractor and its employees, agents and subcontractors, shall comply with the County's
No Smoking Policy, as set forth in the Board of Supervisors Policy Manual section 3.47 (as
amended from time to time), which prohibits smoking: (1) at the Santa Clara Valley
Medical Center Campus and all County-owned and operated health facilities, (2) within 30
feet surrounding County-owned buildings and leased buildings where the County is the
sole occupant, and (3) in all County vehicles.
4. Food and Beverage Standards
Except in the event of an emergency or medical necessity, the following nutritional
standards shall apply to any foods and/or beverages purchased by Contractor with County
funds for County-sponsored meetings or events.
If food is to be provided, healthier food options shall be offered. “Healthier food options”
include (1) fruits, vegetables, whole grains, and low fat and low calorie foods; (2)
minimally processed foods without added sugar and with low sodium; (3) foods prepared
using healthy cooking techniques; and (4) foods with less than 0.5 grams of trans fat per
serving. Whenever possible, Contractor shall (1) offer seasonal and local produce; (2) serve
fruit instead of sugary, high calorie desserts; (3) attempt to accommodate special, dietary
and cultural needs; and (4) post nutritional information and/or a list of ingredients for items
served. If meals are to be provided, a vegetarian option shall be provided, and the
Contractor should consider providing a vegan option. If pre-packaged snack foods are
provided, the items shall contain: (1) no more than 35% of calories from fat, unless the
snack food items consist solely of nuts or seeds; (2) no more than 10% of calories from
saturated fat; (3) zero trans fat; (4) no more than 35% of total weight from sugar and
caloric sweeteners, except for fruits and vegetables with no added sweeteners or fats; and
(5) no more than 360 mg of sodium per serving.
If beverages are to be provided, beverages that meet the County’s nutritional criteria are (1)
water with no caloric sweeteners; (2) unsweetened coffee or tea, provided that sugar and
sugar substitutes may be provided as condiments; (3) unsweetened, unflavored, reduced fat
(either nonfat or 1% low fat) dairy milk; (4) plant-derived milk (e.g., soy milk, rice milk,
and almond milk) with no more than 130 calories per 8 ounce serving; (5) 100% fruit or
vegetable juice (limited to a maximum of 8 ounces per container); and (6) other low-calorie
Page 8 of 9 Agreement between the County of SC and City of Palo Alto
Granting Funds for 2012 Homeland Security Grant Programs
beverages (including tea and/or diet soda) that do not exceed 40 calories per 8 ounce
serving. Sugar-sweetened beverages shall not be provided.
5. Governing Law
This Agreement has been executed and delivered in, and will be construed and enforced in
accordance with, the laws of the State of California.
6. Assignment
The parties may not assign this Agreement or the rights and obligations hereunder
without the specific written consent of the other.
7. Entire Agreement
This document represents the entire Agreement between the parties with respect to the
subject matter hereof. All prior negotiations and written and/or oral agreements between
the parties with respect to the subject matter of this Agreement are merged into this
Agreement.
8. Amendments
This Agreement may only be amended by an instrument signed by the parties.
9. Counterparts
This Agreement may be executed in one or more counterparts, each of which will be
deemed to be an original, but all of which together shall constitute one and the same
instrument.
10. Severability
If any provision of this Agreement is found by a court of competent jurisdiction to be void,
invalid or unenforceable, the same will either be reformed to comply with applicable law
or stricken if not so conformable, so as not to affect the validity or enforceability of this
Agreement.
11. Waiver
No delay or failure to require performance of any provision of this Agreement will constitute
a waiver of that provision as to that or any other instance. Any waiver granted by a party
must be in writing, and will apply solely to the specific instance expressly stated.
Page 9 of 9 Agreement between the County of SC and City of Palo Alto
Granting Funds for 2012 Homeland Security Grant Programs
12. Conflict of Interest
In accepting this Agreement, City covenants that it presently has no interest and will not
acquire any interest, direct or indirect, financial or otherwise, which would conflict in any
manner or degree with the performance of services under this Agreement. City is responsible
for assuring compliance of its subcontractors, if any, with the requirements of this provision.
13. Certified Resolution of Signature Authority
Upon request of Santa Clara County, City will deliver to Santa Clara County a copy of the
resolution(s) authorizing the execution, delivery and performance of this Agreement,
certified as true, accurate and complete by the appropriate authorized representative of City.
Signed:
COUNTY OF SANTA CLARA CITY OF PALO ALTO
By__________________________ ________ By_____________________ ______
Emily Harrison Date James Keene Date
Deputy County Executive City Manager
Approved as to Form and Legality: Approved as to Form:
___________________________________ _______________________________
Mark Gonzalez
Deputy County Counsel City Attorney
Exhibit A 2012 SHSP Project Funding
Exhibit B Grant Assurances Exhibit C Performance Report Template
Attachment A
State Proj
#Disc.
Allowable Funding
Category Requesting Agency Title Funded Amount
A Other M/A OES M/A - Grants Manager 100,000$
A EMS Planning EMS Salary Costs for CMTF EMS Position 50,000$
A Law Planning Sheriff's Office Salary Costs for CMTF Law Position 120,000$
270,000$
B GA Planning SCCo OES Training/Exercise Coordinator 10,000$
B GA Trng SCCo OES Training/Exercise Coordinator 65,000$
B EMS Planning SCCo EMS Contractor 75,000$
C All Trng All Training 100,000$
D EMG Planning SCCo OES CADRE Network 35,343$
E Law Equip All Law Interoperable Communications Equipment 788,000$
F EMG Equip City of San Jose OES Information Technology 72,500$
1,145,843$
1,415,843$
FY12 Homeland Security Grant Program
Allocated Project Funding
Page 1 Initials ___
California Emergency Management Agency
FY 2012 Grant Assurances
(All HSGP Applicants)
Name of Applicant: ___________________________________________________________________
Address: ____________________________________________________________________________
City: _____________________________________ State: _______________ Zip Code: _______________
Telephone Number: ____________________________________ Fax Number: _________________________
E-Mail Address: _____________________________________________________________________________
As the duly authorized representative of the applicant, I certify that the applicant named above:
1. Will assure that grant funds will support efforts related to providing an integrated mechanism to enhance
the coordination of national priority efforts to prevent, respond to, and recover from terrorist attacks,
major disasters and other emergencies.
2. Has the legal authority to apply for Federal assistance and has the institutional, managerial and financial
capability to ensure proper planning, management and completion of the grant provided by the U.S.
Department of Homeland Security (DHS)/Federal Emergency Management Agency (FEMA) and sub-
granted through the State of California, California Emergency Management Agency (Cal EMA).
3. Will assure that grant funds are used for allowable, fair, and reasonable costs only and will not be
transferred between grant programs (for example: State Homeland Security Program, Urban Area
Security Initiative, Citizen Corps Program, and Metropolitan Medical Response System) or fiscal years.
4. Will comply with any cost sharing commitments included in the FY2012 Investment Justifications
submitted to DHS/FEMA/Cal EMA, where applicable.
5. Will give the Federal government, the General Accounting Office, the Comptroller General of the United
States, the State of California, the Office of Inspector General, through any authorized representative,
access to, and the right to examine, all paper or electronic records, books, or documents related to the
award; and will establish a proper accounting system in accordance with generally accepted accounting
standards and/or awarding agency directives.
6. Agrees that funds utilized to establish or enhance State and Local fusion centers must support the
development of a statewide fusion process that corresponds with the Global Justice/Homeland Security
Advisory Council (HSAC) Fusion Center Guidelines, follow the Federal and State approved privacy
policies, and achieve (at a minimum) baseline level of capability as defined by the Fusion Capability
Planning Tool.
7. Will provide progress reports, and other such information as may be required by the awarding agency,
including the Initial Strategy Implementation Plan (ISIP) within 45 (forty-five) days of the award, and
update via the Grant Reporting Tool (GRT) twice each year.
8. Will initiate and complete the work within the applicable time frame after receipt of approval from Cal
EMA.
9. Will maintain procedures to minimize the time elapsing between the award of funds and the disbursement
of funds.
EXHIBIT B
Page 2 Initials ___
10. Will comply with all provisions of DHS/FEMA's codified regulation 44, Part 13, Uniform Administrative
Requirements for Grants and Cooperative Agreements to State and Local Governments, including the
payment of interest earned on advances.
11. Will comply with all provisions of 48 CFR, 31.2, Federal Acquisition Regulations (FAR), Contracts with
Commercial Organizations.
12. Will establish safeguards to prohibit employees from using their positions for a purpose that constitutes,
or presents the appearance of, personal or organizational conflict of interest, or personal gain for
themselves or others, particularly those with whom they have family, business, or other ties.
13. Understands and agrees that Federal funds will not be used, directly or indirectly, to support the
enactment, repeal, modification or adoption of any law, regulation, or policy, at any level of government,
without the express prior written approval from DHS/FEMA/Cal EMA.
14. Agrees that, to the extent contractors or subcontractors are utilized, will use small, minority-owned,
women-owned, or disadvantaged business concerns and contractors or subcontractors to the extent
practicable.
15. Will notify Cal EMA of any developments that have a significant impact on award-supported activities,
including changes to key program staff.
16. Will comply, if applicable, with the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. §§ 4801 et
seq.) which prohibits the use of lead based paint in construction or rehabilitation of structures.
17. Will comply with all Federal and State Statues relating to Civil Rights and Nondiscrimination. These
include, but are not limited to:
a. Title VI of the Civil Rights Act of 1964 (P.L. 88-352), as amended, which prohibits discrimination on
the basis of race, color or national origin.
b. Title IX of the Education Amendments of 1972, as amended (20 U.S.C. §§ 1681-1683 and 1685-
1686), which prohibits discrimination on the basis of gender.
c. Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. § 794), which prohibits
discrimination on the basis of handicaps.
d. The Age Discrimination Act of 1975, as amended (42 U.S.C. §§ 6101-6107), which prohibits
discrimination on the basis of age.
e. The Drug Abuse Office and Treatment Act of 1972 (P.L. 92-255), as amended, relating to
nondiscrimination on the basis of drug abuse.
f. The Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment and Rehabilitation Act of
1970 (P.L. 91-616), as amended, relating to nondiscrimination on the basis of alcohol abuse or
alcoholism.
g. §§ 523 and 527 of the Public Health Service Act of 1912 (42 U.S.C. 290 dd-3 and 290 ee-3), as
amended, relating to confidentiality of alcohol and drug abuse patient records.
h. Title VIII of the Civil Rights Act of 1968 (42 U.S.C. § 3601 et seq.), as amended, relating to
nondiscrimination in the sale, rental or financing of housing.
i. Title 44 Code of Federal Regulations (CFR) Parts 7, 16, and 19 relating to nondiscrimination.
j. The requirements on any other nondiscrimination provisions in the specific statute(s) under which the
application for Federal assistance is being made.
k. Will, in the event that a Federal or State court or Federal or State administrative agency makes a
finding of discrimination after a due process hearing on the grounds or race, color, religion, national
origin, gender, or disability against a recipient of funds, the recipient will forward a copy of the
finding to the Office of Civil Rights, Office of Justice Programs.
EXHIBIT B
Page 3 Initials ___
l. Will provide an Equal Employment Opportunity Plan, if applicable, to the Department of Justice
Office of Civil Rights within 60 days of grant award.
m. Will comply, and assure the compliance of all its subgrantees and contractors, with the
nondiscrimination requirements and all other provisions of the current edition of the Office of Justice
Programs Financial and Administrative Guide for Grants, M7100.1.
18. Will comply with the requirements of Titles II and III of the Uniform Relocation Assistance and Real
Property Acquisition Policies Act of 1970 (42 U.S.C. § 4601 et seq. [P.L. 91-646]) which provides for
fair and equitable treatment of persons displaced or whose property is acquired as a result of Federal or
Federally assisted programs. These requirements apply to all interested in real property acquired for
project purposes regardless of Federal participation in purchases. Will also comply with Title 44 CFR,
Part 25, Uniform Relocation Assistance and Real Property Acquisition for Federal and Federally-assisted
programs.
19. Will comply, if applicable, with the flood insurance purchase requirements of Section 102(a) of the Flood
Disaster Protection Act of 1973 (P.L. 93-234) which requires recipients in a special flood hazard area to
participate in the program and to purchase flood insurance if the total cost of insurable construction and
acquisition is ten thousand dollars ($10,000) or more.
20. Will comply with all applicable Federal, State, and Local environmental and historical preservation
(EHP) requirements. Failure to meet Federal, State, and Local EHP requirements and obtain applicable
permits may jeopardize Federal funding. Will comply with all conditions placed on any project as the
result of the EHP review; any change to the scope of work of a project will require reevaluation of
compliance with these EHP requirements.
21. Will comply with all provisions of DHS/FEMA's codified regulation 44, Part 10, Environmental
Considerations.
22. Agrees not to undertake any project having the potential to impact the EHP resources without the prior
written approval of DHS/FEMA/Cal EMA, including, but not limited to, ground disturbance,
construction, modification to any structure, physical security enhancements, communications towers, any
structure over 50 years old, and purchase and/or use of any sonar equipment. The subgrantee must comply
with all conditions and restrictions placed on the project as a result of the EHP review. Any construction-
related activities initiated without the necessary EHP review and approval will result in a noncompliance
finding, and may not be eligible for reimbursement with DHS/FEMA/Cal EMA funding. Any change to
the scope of work will require re-evaluation of compliance with the EHP. If ground-disturbing activities
occur during the project implementation, the subgrantee must ensure monitoring of the disturbance. If
any potential archeological resources are discovered, the subgrantee will immediately cease activity in
that area and notify DHS/FEMA/Cal EMA and the appropriate State Historic Preservation Office.
23. Any construction activities that have been initiated prior to the full environmental and historic
preservation review could result in non-compliance finding. grantees must complete the FEMA EHP
Screening Form (OMB Number 1660-0115/FEMA Form 024-0-01) and submit it, with all supporting
documentation, to the GPD EHP team at GPDEHPinfo@fema.dhs.gov for review.
24. Grantees should submit the FEMA EHP Screening Form for each project as soon as possible upon
receiving their grant award. The Screening From for these types of projects is available at:
www.fema.gov/doc/government/grant/bulletins/info329_final_screening_memo.doc
25. Will ensure that the facilities under its ownership, lease or supervision, which shall be utilized in the
accomplishment of this project, are not on the Environmental Protection Agency’s (EPAs) List of
Violating Facilities, and will notify Cal EMA and the Federal Grantor agency of the receipt of any
communication from the Director of the EPA Office of Federal Activities indicating if a facility to be
used in the project is under consideration for listing by the EPA.
EXHIBIT B
Page 4 Initials ___
26. Will provide any information requested by DHS/FEMA/Cal EMA to ensure compliance with applicable
laws, including the following:
a. Institution of environmental quality control measures under the Archaeological and Historic
Preservation Act, Endangered Species Act, and Executive Orders on Floodplains (11988), and
Environmental Justice (EO12898) and Environmental Quality (EO11514).
b. Notification of violating facilities pursuant to EO 11738.
c. Assurance of project consistency with the approved state management program developed under the
Coastal Zone Management Act of 1972 (16 U.S.C. §§ 1451 et seq.).
d. Conformity of Federal actions to State (Clean Air) Implementation Plans under Section 176(c) of the
Clean Air Act of 1955, as amended (42 U.S.C. § 7401 et seq.).
e. Protection of underground sources of drinking water under the Safe Drinking Water Act of 1974, as
amended, (P.L. 93-523).
f. California Environmental Quality Act (CEQA). California Public Resources Code Sections 21080-
21098. California Code of Regulations, Title 14, Chapter 3 Section 15000-15007.
g. Wild and Scenic Rivers Act of 1968 (16 U.S.C. §§ 1271 et.seq.) related to protecting components or
potential components of the national wild and scenic rivers system.
h. Applicable provisions of the Coastal Barrier Resources Act (P.L. 97-348) dated October 19, 1982 (16
USC 3501 et seq.) which prohibits the expenditure of most new Federal funds within the units of the
Coastal Barrier Resources System.
27. Will comply with Standardized Emergency Management System (SEMS) requirements as stated in the
California Emergency Services Act, Government Code, Chapter 7 of Division 1 of Title 2, Section
8607.1(e) and CCR Title 19, Sections 2445, 2446, 2447, and 2448.
28. Agrees that all publications created or published with funding under this grant shall prominently contain
the following statement: “This document was prepared under a grant from FEMA's Grant Programs
Directorate, U.S. Department of Homeland Security. Points of view or opinions expressed in this
document are those of the authors and do not necessarily represent the official position or policies of
FEMA's Grant Programs Directorate or the U.S. Department of Homeland Security.” The recipient also
agrees that, when practicable, any equipment purchased with grant funding shall be prominently marked
as follows: “Purchased with funds provided by the U.S. Department of Homeland Security.”
29. Acknowledges that DHS/FEMA reserves a royalty-free, nonexclusive, and irrevocable license to
reproduce, publish, or otherwise use, and authorize others to use, for Federal government purposes: a) the
copyright in any work developed under an award or sub-award; and b) any rights of copyright to which a
recipient or sub-recipient purchases ownership with Federal support.
30. The recipient agrees to consult with DHS/FEMA/Cal EMA regarding the allocation of any patent rights
that arise from, or are purchased with, this funding and has requested through the State of California,
Federal financial assistance to be used to perform eligible work approved in the submitted application for
Federal assistance and after the receipt of Federal financial assistance, through the State of California,
agrees to the following:
a. Promptly return to the State of California all the funds received which exceed the approved, actual
expenditures as accepted by the Federal or State government.
b. In the event the approved amount of the grant is reduced, the reimbursement applicable to the amount
of the reduction will be promptly refunded to the State of California.
c. Property/equipment purchased under the HSGP reverts to Cal EMA if the grant funds are
deobligated/disallowed and/or not promptly repaid.
d. HSGP funds used for the improvement of real property must be promptly repaid following
deobligation/disallowment of costs or Cal EMA reserves the right to place a lien on the property for
the amount owed.
EXHIBIT B
Page 5 Initials ___
e. Separately account for interest earned on grant funds, and will return all interest earned, in excess of
$100 per Federal Fiscal Year.
31. Will comply with the Intergovernmental Personnel Act of 1970 (42 U.S C. Sections 4728-4763) relating
to prescribed standards for merit systems for programs funded under one of the nineteen statutes or
regulations specified in Appendix A of OPM’s Standards for a Merit System of Personnel Administration
(5 C.F.R. 900, Subpart F).
32. Will comply with provisions of the Hatch Act (5 U.S.C. Sections 1501-1508 and 7324-7328) which limit
the political activities of employees whose principal employment activities are funded in whole or in part
with Federal funds.
33. Will comply, if applicable, with the Laboratory Animal Welfare Act of 1966 (P. L. 89-544, as amended, 7
U.S.C. 2131 et seq.) pertaining to the care, handling, and treatment of warm blooded animals held for
research, teaching, or other activities supported by this award of assistance.
34. Will comply with the minimum wage and maximum hour provisions of the Federal Fair Labor Standards
Act (29 U.S.C. 201), as they apply to employees of institutions of higher education, hospitals, and other
non-profit organizations.
35. Agrees that "Classified national security information," as defined in Executive Order (EO) 12958, as
amended, means information that has been determined pursuant to EO 12958 or any predecessor order to
require protection against unauthorized disclosure and is marked to indicate its classified status when in
documentary form.. No funding under this award shall be used to support a contract, subaward, or other
agreement for goods or services that will include access to classified national security information if the
award recipient has not been approved for and has access to such information.
36. Agrees that where an award recipient has been approved for and has access to classified national security
information, no funding under this award shall be used to support a contract, subaward, or other
agreement for goods or services that will include access to classified national security information by the
contractor, subawardee, or other entity without prior written approval from the DHS Office of Security,
Industrial Security Program Branch (ISPB), or, an appropriate official within the Federal department or
agency with whom the classified effort will be performed. Such contracts, subawards, or other agreements
shall be processed and administered in accordance with the DHS "Standard Operating Procedures,
Classified Contracting by States and Local Entities," dated July 7, 2008; EOs 12829, 12958, 12968, as
amended; the National Industrial Security Program Operating Manual (NISPOM); and/or other applicable
implementing directives or instructions. All security requirement documents are located at:
http://www.dhs.gov/xopnbiz/grants/index.shtm
37. Immediately upon determination by the award recipient that funding under this award will be used to
support such a contract, subaward, or other agreement, and prior to execution of any actions to facilitate
the acquisition of such a contract, subaward, or other agreement, the award recipient shall contact ISPB,
or the applicable Federal department or agency, for approval and processing instructions.
DHS Office of Security ISPB contact information:
Telephone: 202-447-5346
Email: DD254AdministrativeSecurity@dhs.gov
Mail: Department of Homeland Security
Office of the Chief Security Officer
ATTN: ASD/Industrial Security Program Branch
Washington, D.C. 20528
38. Agrees with the requirements regarding Data Universal Numbering System (DUNS) Numbers, meaning if
recipients are authorized to make subawards under this award, they must notify potential subrecipients
EXHIBIT B
Page 6 Initials ___
that no entity (see definition in paragraph C of this award term) may receive or make a subaward to any
entity unless the entity has provided its DUNS number. For purposes of this award term, the following
definitions will apply:
a. “Data Universal Numbering System (DUNS)” number means the nine digit number established and
assigned by Dun and Bradstreet, Inc. (D&B) to uniquely identify business entities. A DUNS number
may be obtained from D&B by telephone (currently 866-705-5711) or the Internet, currently at
http://fedgov.dnb.com/webform
b. “Entity”, as it is used in this award term, means all of the following, as defined at 2 CFR part 25,
subpart C, as a Governmental organization, which is a State, local government, or Indian Tribe; or a
foreign public entity; or a domestic or foreign nonprofit organization; or a domestic or foreign for-
profit organization; or a Federal agency, but only as a sub recipient under an award or subaward to a
non-Federal entity.
c. “Subaward” means a legal instrument to provide support for the performance of any portion of the
substantive project or program for which you received this award and that you as the recipient award
to an eligible subrecipient. It does not include your procurement of property and services needed to
carry out the project or program (for further explanation, see Sec. 210 of the attachment to OMB
Circular A-133, ''Audits of States, Local Governments, and Non-Profit Organizations'') and may be
provided through any legal agreement, including an agreement that you consider a contract.
d. “Subrecipient” means an entity that receives a subaward from you under this award; and is
accountable to you for the use of the Federal funds provided by the subaward.
39. Will comply, as applicable, with the provisions of the Davis-Bacon Act (40 U.S.C. Section 276a to 276a-
7), the Copeland Act (40 U.S.C. Section 276c and 18 U.S.C. Sections 874), and the Contract Work Hours
and Safety Standards Act (40 U.S.C. Sections 327-333), regarding labor standards for Federally-assisted
construction sub-agreements.
40. Agrees that:
a. No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to
any person for influencing or attempting to influence an officer or employee of any agency, a
Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress
in connection with the making of any Federal grant, the entering into of any cooperative agreement,
and the extension, continuation, renewal, amendment, or modification of any Federal grant or
cooperative agreement.
b. If any other funds than Federal appropriated funds have been paid or will be paid to any person for
influencing or attempting to influence an officer or employee of any agency, a Member of Congress,
an officer or an employee of Congress, or employee of a Member of Congress in connection with the
Federal grant or cooperative agreement, the undersigned shall complete and submit Standard Form
LLL, “Disclosure of Lobbying Activities,” in accordance with its instructions.
c. The undersigned shall require that the language of this certification be included in the award
documents for all sub awards at all tiers including subgrants, contracts under grants and cooperative
agreements, and subcontract(s) and that all sub recipients shall certify and disclose accordingly.
This certification is a material representation of fact upon which reliance was placed when this
transaction was made or entered into. Submission of this certification is a prerequisite for making or
entering into this transaction imposed by section 1352, Title 31, U.S. Code. Any person who fails to
file the required certification shall be subject to a civil penalty of not less than $10,000 and not more
than $100,000 for each such failure.
a.
b.
41. Agrees that funds awarded under this grant will be used to supplement existing funds for program
activities, and will not supplant (replace) non-Federal funds.
EXHIBIT B
Page 7 Initials ___
42. Agrees that equipment acquired or obtained with grant funds:
c. Will be made available pursuant to applicable terms of the California Disaster and Civil Defense
Master Mutual Aid Agreement in consultation with representatives of the various fire, emergency
medical, hazardous materials response services, and law enforcement agencies within the jurisdiction
of the applicant, and deployed with personnel trained in the use of such equipment ina manner
consistent with the California Law Enforcement Mutual Aid Plan or the California Fire Services and
Rescue Mutual Aid Plan.
d. Is consistent with needs as identified in the State Homeland Security Strategy and will be deployed in
conformance with that Strategy.
43. Will comply with all applicable Federal statutes, regulations, policies, guidelines and requirements,
including OMB Circulars A102 and A-133, E.O. 12372 and the current Administrative Requirements,
Cost Principles, and Audit Requirements.
44. Will comply with all provisions of 2 CFR, including: Part 215 Uniform Administrative Requirements for
Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit
Organizations (OMB Circular A-110); Part 225 Cost Principles for State, Local and Indian Tribal
Governments (OMB Circular A-87); Part 220 Cost Principles for Educational Institutions (OMB Circular
A-21); Part 230 Cost Principles for Non-Profit Organizations (OMB Circular A-122).
45. Will comply with Subtitle A, Title II of the Americans with Disabilities Act (ADA) 1990.
46. Agrees to cooperate with any assessments, national evaluation efforts, or information or data collection
requests, including, but not limited to, the provision of any information required for the assessment or
evaluation of any activities within this agreement.
47. Will comply with Federal Acquisition Regulations (FAR), part 31.2 Contract Cost Principles and
Procedures, Contracts with Commercial Organizations.
48. Will comply with the financial and administrative requirements set forth in the current edition of the DHS
Financial Management Guide.
49. Agrees that all allocations and use of funds under this grant will be in accordance with the FY 2012
Homeland Security Grant Program Funding Opportunity Announcement, and the California Supplement
to the FY 2012 Homeland Security Grant Program Funding Opportunity Announcement. All allocations
and use of funds under this grant will be in accordance with the Allocations, and use of grant funding
must support the goals and objectives included in the State and/or Urban Area Homeland Security
Strategies as well as the investments identified in the Investment Justifications which were submitted as
part of the California FY2012 Homeland Security Grant Program application. Further, use of FY12 funds
is limited to those investments included in the California FY12 Investment Justifications submitted to
DHS/FEMA/Cal EMA and evaluated through the peer review process.
50. Will not make any award or permit any award (subgrant or contract) to any party which is debarred or
suspended or is otherwise excluded from or ineligible for participation in Federal assistance programs
under Executive Order 12549 and 12689, “Debarment and Suspension”. As required by Executive Order
12549, Debarment and Suspension, and implemented at 44 CFR Part 17, for prospective participants in
primary covered transactions, the applicant certifies that it and its principals:
a. Are not presently debarred, suspended, proposed for debarment, declared ineligible, sentenced to a
denial of Federal benefits by a State or Federal court, or voluntarily excluded from covered
transactions by any Federal department or agency.
b. Have not within a three-year period preceding this application been convicted of or had a civil
judgment rendered against them for commission of fraud or a criminal offense in connection with
obtaining, attempting to obtain, or performing a public (Federal, State, or local) transaction or
EXHIBIT B
Page 8 Initials ___
contract under a public transaction; violation of Federal or State antitrust statutes or commission of
embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements,
or receiving stolen property.
c. Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity
(Federal, State, or local) with commission of any of the offenses enumerated in paragraph (1)(b) of
this certification; and have not within a three-year period preceding this application had one or more
public transactions (Federal, State, or local) terminated for cause or default; and
d. where the applicant is unable to certify to any of the statements in this certification, he or she shall
attach an explanation to this application.
51. Will comply with all applicable requirements of all other Federal and State laws, executive orders,
regulations, program and administrative requirements, policies and any other requirements governing this
program.
52. Will comply with the administrative requirements that apply to most DHS award recipients through a
grant or cooperative agreement arise from two sources: - Office of Management and Budget (OMB)
Circular A-102, Uniform Administrative Requirements for Grants and Cooperative Agreements to State
and Local Governments (also known as the "A-102 Common Rule"), found under FEMA regulations at
Title 44, Code of Federal Regulations (CFR) Part 13, "Uniform Administrative Requirements for Grants
and Cooperative Agreements to State and Local Governments." - OMB Circular A-110, Uniform
Administrative Requirements for Grants and Agreements with Institutions of Higher Education,
Hospitals, and Other Non-Profit Organizations, relocated to 2 CFR Part 215. The requirements for
allowable costs/cost principles are contained in the A-102 Common Rule, OMB Circular A-110 (2 CFR §
215.27), DHS program legislation, Federal awarding agency regulations, and the terms and conditions of
the award. The four costs principles circulars are as follows: - OMB Circular A-21, Cost Principles for
Educational Institutions, relocated to 2 CFR Part 220. - OMB Circular A-87, Cost Principles for State,
Local, and Indian Tribal Governments, relocated to 2 CFR Part 225. - OMB Circular A-122, Cost
Principles for Non-Profit Organizations, relocated to 2 CFR Part 230. – OMB Circular A-133, Audits of
States, Local Governments and Non-Profit Organizations.
53. Will acknowledge, agree, and require any subrecipients, contractors, successors, transferees, and
assignees acknowledge and agree-to comply with applicable provisions governing DHS access to records,
accounts, documents, information, facilities, and staff.
a. Recipients must cooperate with any compliance review or complaint investigation conducted by DHS
and/or Cal EMA.
b. Recipients must give DHS/Cal EMA access to and the right to examine and copy records, accounts,
and other documents and sources of information related to the grant and permit access to facilities,
personnel, and other individuals and information as may be necessary, as required by DHS/Cal EMA
regulations and other applicable laws or program guidance.
c. Recipients must submit timely, complete, and accurate reports to the appropriate DHS/Cal EMA
officials and maintain appropriate backup documentation to support the reports.
d. Recipients must comply with all other special reporting, data collection, and evaluation requirements,
as prescribed by law or detailed in program guidance.
e. If, during the past three years, the recipient has been accused of discrimination on the grounds of race,
color, national origin (including limited English proficiency), sex, age, disability, religion, or familial
status, the recipient must provide a list of all such proceedings, pending or completed, including
outcome and copies of settlement agreements to the DHS/Cal EMA awarding office and the DHS
Office of Civil Rights and Civil Liberties.
f. In the event any court or administrative agency makes a finding of discrimination on grounds of race,
color, national origin (including limited English proficiency), sex, age, disability, religion, or familial
status against the recipient, or the recipient settles a case or matter alleging such discrimination,
EXHIBIT B
Page 9 Initials ___
recipients must forward a copy of the complaint and findings to the DHS Component and/or awarding
office. The United States has the right to seek judicial enforcement of these obligations.
54. Agrees that none of the funds provided under an award may be expended by the recipient to pay any
person to influence, or attempt to influence an officer or employee of any agency, a Member of Congress,
an officer or employee of Congress, or an employee of a Member of Congress in connection with any
Federal action concerning the award or renewal of any Federal contract, grant, loan, cooperative
agreement. These lobbying prohibitions can be found at 31 U.S.C. § 1352.
55. Will comply with requirements to acknowledge Federal funding when issuing statements, press releases,
requests for proposals, bid invitations, and other documents describing projects or programs funded in
whole or in part with Federal funds.
56. Will comply with requirements that publications or other exercise of copyright for any work first
produced under Federal financial assistance awards hereto related unless the work includes any
information that is otherwise controlled by the Government (e.g., classified information or other
information subject to national security or export control laws or regulations). For any scientific,
technical, or other copyright work based on or containing data first produced under this award, including
those works published in academic, technical or professional journals, symposia proceedings, or similar
works, the recipient grants the Government a royalty-free, nonexclusive and irrevocable license to
reproduce, display, distribute copies, perform, disseminate, or prepare derivative works, and to authorize
others to do so, for Government purposes in all such copyrighted works. The recipient shall affix the
applicable copyright notices of 17 U.S.C. § 401 or 402 and an acknowledgement of Government
sponsorship (including award number) to any work first produced under an award.
57. Will obtain DHS's approval prior to using the DHS seal(s), logos, crests or reproductions of flags or
likenesses of DHS agency officials, including use of the United States Coast Guard seal, logo, crests or
reproductions of flags or likenesses of Coast Guard officials.
58. Will comply with the requirements that project activities carried on outside the United States are
coordinated as necessary with appropriate government authorities and that appropriate licenses, permits,
or approvals are obtained.
59. Will comply with the requirements of the Preference for U.S. Flag Air Carriers: Travel supported by U.S.
Government funds requirement, which states preference for the use of U.S. flag air carriers (air carriers
holding certificates under 49 U.S.C. § 41102) for international air transportation of people and property to
the extent that such service is available, in accordance with the International Air Transportation Fair
Competitive Practices Act of 1974 (49 U.S.C. § 40118) and the interpretative guidelines issued by the
Comptroller General of the United States in the March 31, 1981, amendment to Comptroller General
Decision B138942.
60. Will comply with the requirements of the Drug-Free Workplace Act of 1988 (41 U.S.C. § 701 et seq.),
which requires that all organizations receiving grants from any Federal agency agree to maintain a drug-
free workplace. The recipient must notify the awarding office if an employee of the recipient is convicted
of violating a criminal drug statute. Failure to comply with these requirements may be cause for
debarment. These regulations are codified at 2 CFR 3001.
61. Will comply with the requirements of the government-wide award term which implements Section 106(g)
of the Trafficking Victims Protection Act (TVPA) of 2000, as amended (22 U.S.C. § 7104), located at 2
CFR Part 175. This is implemented in accordance with OMB Interim Final Guidance, Federal Register,
Volume 72, No. 218, November 13, 2007.In accordance with Section 106(g) of the TVPA, as amended,
requires the agency to include a condition that authorizes the agency to terminate the award, without
penalty, if the recipient or a subrecipient engages in severe forms of trafficking in persons during the
EXHIBIT B
Page 10 Initials ___
period of time that the award is in effect, procures a commercial sex act during the period of time that the
award is in effect; or uses forced labor in the performance of the award or subawards under the award.
Full text of theaward term is provided at 2 CFR § 175.15.
62. Will comply with the requirements of Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et
seq.), which provides that no person in the United States will, on the grounds of race, color, or national
origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination
under any program or activity receiving Federal financial assistance.
63. Will comply with Title VIII of the Civil Rights Act of 1968, which prohibits recipients from
discriminating in the sale, rental, financing, and advertising of dwellings, or in the provision of services in
connection therewith, on the basis of race, color, national origin, religion, disability, familial status, and
sex (42 U.S.C.§ 3601 et seq.), as implemented by the Department of Housing and Urban Development at
24 CFR Part 100. The prohibition on disability discrimination includes the requirement that new
multifamily housing with four or more dwelling units-i.e., the public and common use areas and
individual apartment units (all units in buildings with elevators and ground-floor units in buildings
without elevators)-be designed and constructed with certain accessible features (see 24 CFR § 100.201).
64. Will comply with the requirements of Titles I, II, and III of the Americans with Disabilities Act, which
prohibits recipients from discriminating on the basis of disability in the operation of public entities, public
and private transportation systems, places of public accommodation, and certain testing entities (42
U.S.C. §§ 12101-12213).
65. Will comply with the requirements of the Age Discrimination Act of 1975 (42 U.S.C. § 6101 et seq.),
which prohibits discrimination on the basis of age in any program or activity receiving Federal financial
assistance.
66. Will comply with the requirements of Title IX of the Education Amendments of 1972 (20 U.S.C. § 1681
et seq.), which provides that no person in the United States will, on the basis of sex, be excluded from
participation in, be denied the benefits of, or be subjected to discrimination under any educational
program or activity receiving Federal financial assistance. These regulations are codified at 44 CFR Part
19.
67. Will comply with the requirements of Executive Order 13166, Improving Access to Services for Persons
with Limited English Proficiency, and resulting agency guidance, national origin and resulting agency
guidance, national origin discrimination includes discrimination on the basis of limited English
proficiency (LEP). To ensure compliance with Title VI, recipients must take reasonable steps to ensure
that LEP persons have meaningful access to your programs. Meaningful access may entail providing
language assistance services, including oral and written translation, where necessary. Recipients are
encouraged to consider the need for language services for LEP persons served or encountered both in
developing budgets and in conducting programs and activities. For assistance and information regarding
LEP obligations, go to http://www.lep.gov.
68. Will comply with the requirements of 42 U.S.C. § 7401 et seq. and Executive Order 11738, which
provides for the protection and enhancement of the quality of the nation's air resources to promote public
health and welfare and for restoring and maintaining the chemical, physical, and biological integrity of
the nation's waters is considered research for other purposes.
69. Will comply with the requirements of the Federal regulations at 45 CFR Part 46 and the requirements in
DHS Management Directive 026-04, Protection of Human Subjects, prior to implementing any work with
human subjects. The regulations specify additional protections for research involving human fetuses,
pregnant women, and neonates (Subpart B); prisoners (Subpart C); and children (Subpart D). The use of
autopsy materials is governed by applicable State and local law and is not directly regulated by 45 CFR
Part 46.
EXHIBIT B
Page 11 Initials ___
70. Will comply with the requirements of the National Environmental Policy Act (NEPA), as amended, 42
U.S.C. § 4331 et seq., which establishes national policy goals and procedures to protect and enhance the
environment, including protection against natural disasters. To comply with NEPA for its grant-supported
activities, DHS requires the environmental aspects of construction grants (and certain non-construction
projects as specified by the Component and awarding office) to be reviewed and evaluated before final
action on the application.
71. Will comply with the requirements of Section 1306(c) of the National Flood Insurance Act, as amended,
which provides for benefit payments under the Standard Flood Insurance Policy for demolition or
relocation of a structure insured under the Act that is located along the shore of a lake or other body of
water and that is certified by an appropriate State or local land use authority to be subject to imminent
collapse or subsidence as a result of erosion or undermining caused by waves or currents of water
exceeding anticipated cyclical levels. These regulations are codified at 44 CFR Part 63.
72. Will comply with the requirements of the Flood Disaster Protection Act of 1973, as amended (42 U.S.C. §
4001 et seq.), which provides that no Federal financial assistance to acquire, modernize, or construct
property may be provided in identified flood-prone communities in the United States, unless the
community participates in the National Flood Insurance Program and flood insurance is purchased within
one year of the identification. The flood insurance purchase requirement applies to both public and private
applicants for DHS support. Lists of flood-prone areas that are eligible for flood insurance are published
in the Federal Register by FEMA.
73. Will comply with the requirements of Executive Order 11990, which provides that federally funded
construction and improvements minimize the destruction, loss, or degradation of wetlands. The Executive
Order provides that, in furtherance of Section 101(b)(3) of NEPA (42 U.S.C. § 4331(b)(3)), Federal
agencies, to the extent permitted by law, must avoid undertaking or assisting with new construction
located in wetlands unless the head of the agency finds that there is no practicable alternative to such
construction, and that the proposed action includes all practicable measures to minimize harm to wetlands
that may result from such use. In making this finding, the head of the agency may take into account
economic, environmental, and other pertinent factors. The public disclosure requirement described above
also pertains to early public review of any plans or proposals for new construction in wetlands. This is
codified at 44 CFR Part 9.
74. Will comply with the requirements of the Uniting and Strengthening America by Providing Appropriate
Tools Required to Intercept and Obstruct Terrorism Act (USA PATRIOT Act), which amends 18 U.S.C.
§§ 175-175c. Among other things, it prescribes criminal penalties for possession of any biological agent,
toxin, or delivery system of a type or in a quantity that is not reasonably justified by a prophylactic,
protective, bona fide research, or other peaceful purpose. The act also establishes restrictions on access to
specified materials. "Restricted persons," as defined by the act, may not possess, ship, transport, or
receive any biological agent or toxin that is listed as a select agent.
75. Understands the reporting of subawards and executive compensation rules, including first tier subawards
to Cal EMA.
a. Applicability. Unless you are exempt as provided in paragraph d. of this award term, you must report
each action that obligates $25,000 or more in Federal funds that does not include Recovery funds (as
defined in section 1512(a)(2) of the American Recovery and Reinvestment Act of 2009,
b. Where and when to report: you must report on each obligating action described in the following
paragraphs to Cal EMA. For subaward information, report no later than the end of the month
following the month in which the obligation was made. (For example, if the obligation was made on
November 7, 2011, the obligation must be reported by no later than December 31, 2011.)
c. What to report: You must report the information about each obligating action that the submission
instructions posted in Information Bulletin 350, to Cal EMA. To determine if the public has access to
EXHIBIT B
Page 12 Initials ___
the compensation information, see the U.S. Security and Exchange Commission total compensation
filings at http://www.sec.gov/answers/execomp.htm. Subgrantees must report subrecipient executive
total compensation to Cal EMA by the end of the month following the month during which you make
the subaward. Exemptions include: If, in the previous tax year, you had gross income, from all
sources, under $300,000, you are exempt from the requirements to report on subawards, and the total
compensation of the five most highly compensated executives of any subrecipient.
d. Reporting Total Compensation of Recipient Executives: You must report total compensation for each
of your five most highly compensated executives for the preceding completed fiscal year, if
i. the total Federal funding authorized to date under this award is $25,000 or more;
ii. in the preceding fiscal year, you received 80 percent or more of your annual gross revenues
from Federal procurement contracts (and subcontracts) and Federal financial assistance
subject to the Transparency Act, as defined at 2 CFR 170.320 (and subawards); and
$25,000,000 or more in annual gross revenues from Federal procurement contracts (and
subcontracts) and Federal financial assistance subject to the Transparency Act, as defined at
2 CFR 170.320 (and subawards); and
iii. The public does not have access to information about the compensation of the executives
through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act
of 1934 (15 U.S.C. 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986.
(To determine if the public has access to the compensation information, see the U.S.
Security and Exchange Commission total compensation filings at
http://www.sec.gov/answers/execomp.htm.)
iv. Subrecipient Executives. Unless you are exempt as provided above, for each first-tier
subrecipient under this award, you shall report the names and total compensation of each of
the subrecipient's five most highly compensated executives for the subrecipient's preceding
completed fiscal year, if in the subrecipient's preceding fiscal year, the subrecipient
received 80 percent or more of its annual gross revenues from Federal procurement
contracts (and subcontracts) and Federal financial assistance subject to the Transparency
Act, as defined at 2 CFR 170.320 (and subawards); and $25,000,000 or more in annual
gross revenues from Federal procurement contracts (and subcontracts), and Federal
financial assistance subject to the Transparency Act (and subawards); and the public does
not have access to information about the compensation of the executives through periodic
reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15
U.S.C. 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986.
76. Understands that failure to comply with any of the above assurances may result in suspension,
termination, or reduction of grant funds.
The undersigned represents that he/she is authorized by the above named applicant to enter into this agreement for
and on behalf of the said applicant.
Signature of Authorized Agent:______________________________________________
Printed Name of Authorized Agent:___________________________________________
Title:____________________________________ Date:__________________________
EXHIBIT B
Performance Report
FISCAL YEAR 2012 Homeland Security Grant Program
Reporting City: __________________________________________________
Performance Period: from _________________ to ____________________
(see Agreement with County for Performance Period Report due date)
Mailing Instructions: Please complete the performance report and return it by the appropriate due
date as indicated: (see Agreement with County for Performance Period Report due dates)
Santa Clara County Office of Emergency Services Attention: Melissa Erickson
55 West Younger Ave, Suite 450
San Jose CA, 95110
Questions regarding the completion of this performance report should be directed to Santa Clara County Office of Emergency Services (408)808-7811. Questions can also be sent via email to
melissa.erickson@oes.sccgov.org. Reports can be faxed to (408)294-4689, with a hard copy of
the report mailed to the above address.
Part I –City Contact Information
Authorized person who is responsible for completing this form:
Name_______________________________________________________________________
Title ________________________________________________________________________
Mailing Address_____________________________________________________________________
Phone_____________________________________Fax______________________________
e-mail _____________________________________________
Exhibit C
Part II – Project Activities
Directions: Complete the following items to reflect activities completed in your city during this reporting period.
1. Project Title: ______________________________________________________
2. Please explain the actions/processes being taken and estimated completion date.
Part III –Signature of Preparer
I certify that I have prepared this report with the most timely and accurate information available.
Signature:____________________________________ Date:_________________________
Printed Name:_________________________________ Title:_________________________
City of Palo Alto (ID # 3995)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 9/16/2013
City of Palo Alto Page 1
Summary Title: Amendment to Turner Contract for Mitchell Park Library
Title: Approval of Amendment No. 1 to Contract C13149552 with Turner
Construction Company to Increase Compensation by $785,000 for a Total
Amount Not-to-Exceed $1,485,000 for Additional Construction Management
Services for the Mitchell Park Library & Community Center Project
From: City Manager
Lead Department: Public Works
Recommendation
Staff recommends that Council approve and authorize the City Manager to
execute Amendment No. One to Contract C13149552 with Turner Construction
Company (Attachment A), to increase the compensation by $785,000 for
additional construction management services for the Mitchell Park Library and
Community Center project for a total time and materials contract amount of
$1,485,000 and a total payment to Turner of $6,615,334.
Executive Summary
The Mitchell Park Library and Community Center (MPLCC) project has
experienced substantial construction delays and a large number of change orders
and claims. The current schedule from the prime construction contractor, Flintco
Pacific, Inc. (Flintco), indicates the project will be completed in late 2013,
approximately one and a half years later than the originally scheduled date for
project completion. The delay is primarily the result of construction problems,
particularly Flintco’s failure to properly schedule, coordinate and manage the
work and inspections, and the City’s rejection of non-compliant work.
As a result of the delays, change orders, claims, and non-compliant work, Turner
City of Palo Alto Page 2
has had to remain on the job past the original contractual time period.
Accordingly, staff recommends to increase Turner’s contract time and
compensation by $785,000 in order to compensate Turner for extra work
performed and to be performed during the construction phase from June 1 to
November 30, 2013 (the currently estimated completion date), and to provide
post-construction services for the period of December 1, 2013, to November 30,
2014.
Background
Measure N, which passed on November 4, 2008, allowed the City to sell bonds to
fund the renovation of the Downtown Library, construction of the Mitchell Park
Library and Community Center (MPLCC), and renovation and expansion of the
Main Library.
The City issued a Request for Proposals (RFP) for the construction management
services for all of the Library Bond projects and Turner was selected. On
September 14, 2009, the City and Turner entered into Contract C10131631. Five
amendments were approved by Council to add construction management
services and compensation for all of the Library Bond projects and to specify an
end date of June 1, 2013, for the construction phase services for the MPLCC
project. Also, in entering into the contract amendments, the City agreed to defer
any claims against Turner relating to project delay and to set aside the amount of
$850,000 as partial security for those claims.
When it became apparent that the MPLCC project would extend beyond June 1,
2013, Turner requested that its fixed price contract be transitioned to a time and
materials contract. On May 20, 2013, Council approved contract C13149552 with
Turner for $700,000 to provide construction management services on a time and
materials basis through the completion of the project, including $525,000 for
Turner’s construction phase staff services from June 2 to October 31, 2013. The
new contract includes safeguards to ensure City review of monthly invoices
exceeding $140,000.
Discussion
City of Palo Alto Page 3
Turner’s construction phase services include: analyzing, estimating and processing
change orders and claims; reviewing schedules; coordinating construction and
inspections; inspecting and cataloging defective work; and assisting the City and
Flintco in resolving construction issues.
In May 2013, Turner and staff estimated the amount of work Turner would
provide during the first five months of the new contract (June – October 2013).
This estimate assumed that Turner’s time and fees would diminish as the project
neared completion. However, that has not been the case. Although Flintco has
recently stepped up their efforts to complete the project by November 30, 2013,
change orders and claims submitted by Flintco have continued, as have failed
inspections and non-compliant work. Additionally, the City’s twenty public art,
fixtures, furnishings and equipment contractors are now beginning the
installation of their work. Although Flintco is contractually obligated to
coordinate these contractors’ work with their own, they have generally failed to
do so and Turner has had to become involved. The result of all this is that Turner
has been unable to wind down their services.
An additional $785,000 for Turner’s staff services is recommended in Amendment
No. One of the new contract. This includes $325,000 for Turner’s additional
services during the construction phase for the months of June to October 2013 as
well as one additional month of service in November 2013. It also includes
$460,000 for Turner’s post-construction services from December 1, 2013 through
November 30, 2014. These post-construction services are primarily for work to
deal with construction deficiencies, the punch list, change orders, claims and
warranty issues as staff anticipates that it likely will take a considerable amount of
time and resources to negotiate and finalize all of the outstanding claims and
issues with Flintco after construction is completed. Turner’s assistance during this
period is essential as they will have the expertise and historical knowledge and
documentation to deal with unresolved issues. Should the issues with Flintco be
resolved sooner than anticipated or with fewer resources, staff would direct
Turner to suspend their services and would only pay for services rendered up to
that point.
Resource Impact
City of Palo Alto Page 4
Funds for the recommended amendment to the Turner contract are available in
the Mitchell Park Library and Community Center project (CIP PE-09006). The
original contract with Turner, including five amendments, totals $5,130,334 for
MPLCC. Amendment No. One to the new contract with Turner adds $785,000 for
a total contract amount of $1,485,000. Turner’s total accumulated payment for
services in relation to the Mitchell Park project would be $6,615,334.
Flintco’s bid and original contract amount for the project were well below the
engineer’s estimate, however the City has authorized $3,781,522 in change
orders accumulatively for Flintco through July 2013. Turner’s and the City’s
architect, Group 4’s, contracts exceed the amounts originally budgeted for their
services. However, the total estimated budget for project costs as are still below
the $50,000,000 bond budget and the $49,043,000 engineer’s estimate, as shown
below.
Flintco original contract $24,365,000
Flintco contingency $ 4,873,000 (over $1,000,000 remains)
Group 4 contract $ 6,020,725
Turner old contract $ 5,130,334
Turner new contract $ 1,485,000 (including the $785,000 add)
Other City contractors $ 2,936,781 (including contingencies)
Allocated Atty & Expert Fees $ 1,050,000
Permits, fees $ 487,174
TOTAL $46,348,014
Policy Implications
Amending the contract with Turner does not conflict with any current City policy.
Timeline
Construction of the new Mitchell Park Library and Community Center began in
September of 2010 and staff anticipates the facility opening in late 2013.
City of Palo Alto Page 5
Attachments:
Turner Amendment (PDF)
Additional Services, if any, shaH 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 bc defined
as set forth in Exhibit "A", and 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 elsewhere in Exhibit "A" .
. SECTION 2. EXHIBIT "A" entitled SCOPE OF SERVICES is hereby amended to add
the foHowing paragraph at the beginning of Phase III: Post eonstruction Services To Be
Provided On A Time And Material Basis:
"Post Construction Resolution Services: Consultant shaH assist the City in:' ensuring the
Contractor completes the punch list; analyzing, documenting and resolving outstanding
construction deficiencies or non-compliance with the Contractor; and analyzing, documenting
and resolving outstanding ehange orders and claims from the Contractor."
SECTION 3: EXfUBIT "B" entitled SCHEDULE Of PERFORMANCE is hereby
amended by revising Task 2 to read, "2. Post Construction (5 months after CO) March 31,
2014"
SECTION 4. EXHIBIT "C" entitled COMPENSATION is hereby amended to read as
set forth in the following attachment to this Amendment.
SECTION 5. Except as herein modified, all other provisions of the Contract, including
any exhibits and subsequent amendments thereto, shall r"wain in full force and effect.
{REMAINDER INTENTIONALLY BLANK -SIGNATURE PAGE FOLLOWS]
2
EXHIBIT "C"
COMPENSATION
The CITY agrees to compensate the CONSULTANT on a time and materials basis for
professional services performed in accordance with the terms and conditions of this
Agreement. Compensation shall be calculated on a time and material basis for the
performance of the services specified in Phase II, Construction Phase Services in Exhibit
"A". The hourly rate schedule attached as exhibit C-l will be used to compensate
CONSULTANT for personnel assigned to each task set forth below. The budget per task
below will be used by the CITY for internal accountin~.
For Subconsultants, such as Inspections, special inspections, electronic document services,
and photographic documentation services, the CITY agrees to compensate the
CONSULTANT for services performed in accordance with the terms and conditions of
this Agreement and as set forth in the budget schedule below. Compensation for the
CONSULTANT shall be calculated based upon the actual cost ofthe subconsultant, plus a
fee of five percent (5%), up to the not to exceed budget amounl set forth below.
The compensation to be paid to CONSULTANT under this Agreement for the
performance of services described in Exhibit "A" ("Basic Services") and reimbursable
expenses shall not exceed $1,485,000 (the '~Cap"). If the CITY wants CONSULTANT to
perform the Services so that CONSULTANT's compensation (for both professional
services and reimbursable expenses) would exceed the Cap, then (a) prior written
authorization from the CITY will be required, and (b) CONSULTANT will not be
required to perform those Services unkss and until the City Council authorizes a written
contract amendment increasing the Cap accordingly. Any work performed or expenses
incurred for which payment would result in a total exceeding the Cap without prior
authorization from the CITY shall be at no cost to the CITY.
CONSULTANT's work shall be performed on a Time and Materials basis and shall
perform the tasks and categories of work as outlined below. In the event Consultant's
Task 1 Staff Costs exceed $140,000 in any month, CONSULTANT shall promptly notifY
the City Manager and Public Works Director in writing once it becomes aware that such
Staff Costs have been incurred. CONSULTANT shall submit detailed time records and
reimbursables backup in a form acceptable to the CITY. The CITY's Project Manager
may approve in writing the transfer ofbudgct amounts between any ofthe tasks or
categories listed below provided the total compensation for Basic Services, including
reimbursable expenses, does not exceed $1,485,000.
4
REIMBURSABLE EXPENSES
The administrative, overhead, secretarial time or secretarial overtime, word processing,
photocopying, in-house printing, insurance and other ordinary business expenses are
included within the scope of payment for services and are not reimbursable ~xpenses.
Then CITY will reimburse CONSULTANT for approved subcontracted services billed at
cost plus 5%.
ADDITIONAL SERVICES
The CONSULTANT shall provide additional services only by advanced, written
authorization from the CITY. The CONSULTANT, at the CITY's pn~ject manager's
request, shall submit a detailed written proposal including a description of the scope of
services, schedule, level of effort, and CONSULTANT's proposed maximum
compensation, including reimbursable expense, for such services based on the rates set
forth in Exhibit C-l. The additional services scope, schedule and maximum
compensation shall be negotiated and agrced to in writing by the CITY's Project
Manager and CONSULTANT prior to commencement of the services. Payment for
additional services is subject to all requirements and restrictions in this Agreement
TIME AND MATERIAl"S WORK
Notwithstanding any other provision or anything to the contrary herein, it is expressly
understood and agreed by both paI1ies that this contract is for Hourly and Time and
Materials work, and that Consultant will provide staff and services up to the total contract
authorization of$I,485,000 only, regardless of the status of construction, the status of the
project, the performance or actions of the Contractor, the status of milestone dates, or thc
status of the Construction Schedule. Consultant will keep the City advised at reasonable
intervals as to how the Construction Management compensation is approaching the total
authorization of $1,485,000, and will work with the City to manage the level of stafY and
the services to work towards the $1,485,000 authorization.
6
EXHIBIT "C-l"
HOURLY RATE SCHEDULE
Rates for Services Performed in 2013
Project Executive $261
Project Manager $185
Superintendent $179
Project Engineer $118
Administration $ 71
Scheduling $174
Accounting $113
Estimator $188
Estimating Engineer $174
7
Rates for Services Performed in 2014 (because
anticipated warranty period extends into 2014)
Project Executive $270
Project Manager $191
Superintendent $184
Project Engineer $122
Administration $ 73
Scheduling $179
Accounting $116
City of Palo Alto (ID # 4003)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 9/16/2013
City of Palo Alto Page 1
Summary Title: City Hall Contract Amendment 1 with WMB Architects
Title: Approval of Amendment No. 1 to Contract No. C12144101 with WMB
Architects, Inc. in the Amount of $105,974 for a Total Not-to-Exceed Amount
of $284,691 for Design of Improved Public Lobby and Meeting Spaces and
Consolidation of Utilities Customer Service Functions on the First Floor as
Part of the City Hall First Floor Renovations Capital Improvement Program
Project PE-12017
From: City Manager
Lead Department: Public Works
Recommendation
Staff recommends that Council approve and authorize the City Manager or his
designee to execute Amendment No. 1 to Contract No. C12144101 with WMB
Architects, Inc. (Attachment A) in the amount of $105,974 for expanded design
services for the City Hall First Floor Renovations Project PE-12017 for a total not-
to-exceed contract amount of $284,691 consisting of $258,810 for basic services
and $25,881 for additional services.
Background
On March 5, 2012 Council approved consultant contract C12144101 with WMB
Architects, Inc. (WMB) for design services for renovations on the first floor of City
Hall (Staff Report #2457). WMB was selected through the standard consultant
selection Request for Proposal (RFP) process. The scope of work in the RFP for
the project provided for design upgrades to the Council Conference Room, the
Human Resources (HR) Conference Room, the main lobby area, and elevator cabs.
It also included design of wayfinding improvements for the entire Civic Center to
help visitors navigate to their desired destinations. The FY 2014 Capital
City of Palo Alto Page 2
Improvement Plan Budget included additional funding that expands the scope of
the City Hall First Floor Renovation Project to consolidate customer service
functions on the first floor and provide new, modern public meeting spaces. This
contract amendment, in addition to unexpended funds reprogrammed from the
original contract will fund the necessary design work to meet those objectives, as
described below.
Discussion
Amendment No. 1 to the consultant contract provides for the design and
preparation of construction documents for a larger area of City Hall than was
provided for in the original scope of work. During the study phase of the project
it was determined that the existing Council Conference Room was incapable of
effectively serving the public for its current usage due to its size, location, and
configuration. The consultant’s amended design work is further based on a series
of discussions and recommendations made by staff and approved by the City
Council to create a more open and welcoming atmosphere to encourage public
interaction with City activities and City staff.
Following the initial design development discussions, the plan evolved to
transform the east side of the main lobby including the office area currently used
by Human Resources (HR) into a larger, more comfortable Community Conference
Room that will better serve larger Council Committee and Commission meetings
and be much more accommodating for the public. The existing HR Conference
Room will then be expanded into a new larger conference room to be used for
smaller Council (Closed Sessions, etc) and Staff meetings. The existing old Council
Conference Room will be transformed into a staff training and multi-use room.
The existing restrooms serving the Council will be upgraded to conform to
Americans with Disabilities Act (ADA) accessibility requirements. The remaining
main lobby area will be further remodeled to incorporate public art displays and
also to enhance the existing lobby payment counter. The Utilities Department
Customer Service functions currently located on the second floor will be moved to
the first floor adjacent to the existing Revenue Collection in order to more
efficiently serve the public. These changes will require other movements of staff
between the first floor, mezzanine, and second floor.
City of Palo Alto Page 3
Since the project will include carpeting on much of the first floor, WMB will also
assist with the selection of new carpeting for the Council Chambers. Council
Chamber carpeting is funded in CIP PF-11001.
OVERVIEW
The new scope of work, including the additional work authorized by the
Amendment No. 1, includes:
1) Main Lobby remodel including public art element
2) Convert existing HR conference room into new Council Conference Room
3) Convert existing Council Conference Room into new Training/Wellness
Room
4) Design new community meeting room beside the Main Lobby
5) Design of new lobby payment counter and new doors for architectural
consistency
6) Convert Revenue Services into new Utilities Customer Service offices and
counter
7) Reconfigure mezzanine level offices (PSOD and Purchasing)
8) Reconfigure second floor offices (IT and Utilities)
9) Selection of new carpeting for Council Chambers
10) Remodel elevator cabs
11) Design new directional (wayfinding) signage for the entire Civic Center
area
Attachment B presents the final conceptual floor plans that will be refined into a
set of construction documents for bidding. The contract with WMB includes
services through bid support. Upon successful issuance of a construction
contract, the WMB contract will be further amended to include construction
administration and related services.
Timeline
City of Palo Alto Page 4
Staff expects to submit a building permit application by the end of October 2013.
The project will then be issued for bids and the estimated six month construction
period could begin in early spring 2014. 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.
Resource Impact
Funding for the expanded scope will be derived from a combination of funds in
CIP Project PE-12017 (City Hall First Floor Renovation) and PF-02022 (Interior
Finishes) that were approved in the fiscal year 2014 Capital Budget.
Policy Implications
The project is in conformance with Council policies encouraging public
participation, open government, and transparency.
Environmental Review
This project is categorically exempt from the provisions of the California
Environmental Quality Act (CEQA) under Section 15301 of the CEQA Guidelines as
repair, maintenance or minor alteration of an existing facility and no further
environmental review is necessary.
Attachments:
Attachment A (PDF)
Attachment B (PDF)
AMENDMENT NO.1 TO CONTRACT NO. C12144101
BETWEEN THE CITY OF PALO ALTO AND
WMB ARCHITECTS, INC.
This Amendment No.1 to Contract No. Cl2144101 ("Contract") is entered into on 16th of
September, 2013, 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 design
services for the City Hall First Floor Renovation Project; and
WHEREAS, 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 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 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 CONSULTANT for performance of the Services
described in Exhibit "A", including both payment for professional services and
reimbursable expenses, shall not exceed Two Hundred Fifty-Eight Thousand Eight
Hundred Ten Dollars [$258,810.00]. In the event Additional Services are authorized,
the total compensation for services and reimbursable expenses shall not exceed Two
Hundred Eighty-FouroThousand Six Hundred Ninety-One Dollars [$284,691.00].
The applicable rates and schedule of payment are set out in Exhibit "C-l ", entitled
"HOURLY RATE SCHEDULE", which is attached to and make a part of this
Agreement."
SECTION 3. Section 12 of the Contract, SUBCONTRACTING, Paragraph 1 is hereby
amended to read as follows:
"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:
1 Revision July 25, 2012
1) WSP FLACK + KURTZ (MechanicallElectrical Engineers/Audio Visual)
2) Ingraham DeJesse (Structural Engineers)
3) Square Peg Design (Wayfinding Consultant)"
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 "Project Schedule"
c. Exhibits "C" and "C_I" entitled "Compensation" and "Rate Schedule".
SECTION 5. Except as herein modified, all other provisions ofthe 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 "B":
EXHIBIT "C":
EXHIBIT "C-I":
SCOPE OF PROJECT
SCHEDULE
COMPENSA TION
RATE SCHEDULE
WMB ARCHITECTS, INC.
Tian,4 5 &"
Thomas Bowe (Sep 9, 2013)
President
2 Revision July 25, 2012
Exhibit "A" -Scope of Work
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
3 Revision July 25, 2012
CommitteelBoard/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 modem 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 modem and usable space which
will more readily accommodate the multitude of departments that utilize the area.
B) Design a more modem 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
4 Revision July 25, 2012
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 end1,l.sers 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 ass'ist 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
5 Revision July 25, 2012
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.
6 Revision July 25, 2012
WORK PLAN
WAYFINDING
PARAGRAPH 5.4 SCOPE OF WORK I WORK PLAN
PROPOSAL SCOPE 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 eontrol
throughollt the entire process.
Square Peg will thoroughly review the existing signing. study circulation etc in preparation to
develop a new waytinding 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 infomlation
kiosk on the First rloor.
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.
9
Based on the scope outline f)'om the RFP and past experience with similar projects we anticipate the scope of
signs to include, but is nollimited 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/infonnation Display or Kiosk (Static
/ Dynamic) -Main Lobby
-Secondary Entry Lobbies
-Elevator Lobbies at Upper Levels
Floor LevellD 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 wiII be closely coordinated with WMB Architects and GB
Engineers to insure a well integrated design solution.
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:
U Signing for Non Public Areas such as office areas and back of house:
Room Identification Signing
Department! Area Identification
Office lD
Workstation lD
Conference Room ID Mise 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
U Print & Amenity design
[1 Sculptures / Feature pieces
iJ 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
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 signagc 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
I. 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 I, Square Peg will develop and apply the
approved design direction to all remaining sign types.
The following is expected during this phase of work:
I. Develop the approved Schematic Design per comments from Phase I 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
I. Interim design coordination with the city and design consultants as needed
2. Present Final Design
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 il1to 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 110t limited to, the following:
T. 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
I. 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 suftlcient in detail to facilitate tendering and fabrication by a
qualified sign fabricator.
2. Specifications
3. Final sign location plans and message schcdule(s) for all required sign types.
13
Documents will be issued as follows:
I. Design documentation drawings for signing elements in Illustrator CS4 on Mac OS X platform: CD and
three (3) hard copies, Tabloid formal
2. Location Plans -CA D 2010, CD and three (3) hard copies
3. Message Schedule -Filemaker: CD and three (3) hard copies
14
City of Palo Alto Contract No. C12144101
Scope Change #1 -Expansion to New Community Meeting Room + Mezzanine Level
Offices
Task Proposed Scope Change #1
Task l-Investigation
Architectural $ 5,438
Engineering $ 5,000
$ 10,438
Task 2 -Needs Assessment
Architectural $ 7,000
Engineering $ 7,000
$ 14,000
Task 3 -Concept Design Development
Architectural $ 16,500
Engineering $ 12,000
$ 28,500
Task 4 -Construction Documents
Architectural $ 39,500
Engineering $ 32,000
$ 71,500
Task 5 -Plan Review I Permitting
Architectural $ 5,000
Engineering $ 5,000
$ 10,000
Task 6 -Bidding
Architectural $ 3,500
Engineering $ 4,000
$ 7,500
Task 7 -Wayfinding Schematic Design
Architectural $
Engineering $ 24,000
$ 24,000
Task 8 -Wayfinding Design Development
Architectural $
Engineering $ 20,000
$ 20,000
Task 9 -Wayfinding Documentation
Architectural $
Engineering $ 24,000
$ 24,000
Subtotal Fees
Architectural $ 76,938
Engineering $ 133,000
$ 209,938
Reimbursable Expenses $ 8,000
Total Basic Services & Reimbursable Expenses $ 217,938
Additional Services (NTEl $ 21,794
MAXIMUM TOTAL COMPENSATION $ 239,732
WMB Architects Inc.
City of Palo Alto Contract No. C12144101
Scope Change #2 -Addition of Second Floor
Task Proposed Scope Change #2
Task 1 -Investigation
Architectural $ 1,500
Engineering $ 1,000
$ 2,500
Task 2 -Needs Assessment
Architectural $ 1,700
Engineering $ 1,000
$ 2,700
Task 3 -Concept Design Development
Architectural $ 3,377
Engineering $ 4,000
$ 7,377
Task 4 -Construction Documents
Architectural $ 7,500
Engineering $ 11,000
$ 18,500
Task 5 -Plan Review I Permitting
Architectural $ 1,250
Engineering $ 1,000
$ 2,250
Task 6 -Bidding
Architectural $ 1,275
Engineering $ 500
$ 1,775
Subtotal Fees
Architectural $ 16,602
Engineering $ 18,500
$ 35,102
Reimbursable Expenses $ 2,000
Total Basic Services & Reimbursable Expenses $ 37,102
Additional Services (NTE) $ 3,710
MAXIMUM TOTAL COMPENSATION $ 40,812
WMB Architects Inc.
City of Palo Alto Contract No. C12144101
Scope Change #3 -Council Chambers Flooring & Assisted Listening
Task Proposed Scope Change #3
Task 1 -Investigation
Arch itectu ra I $ 1,000
Engineering $ 250
$ 1,250
Task 2 -Needs Assessment
Architectural $
Engineering $
$
Task 3 -Concept Design Development
Architectural $ 800
Engineering $
$ 800
Task 4 -Construction Documents
Architectural $ 720
Engineering $ 1,000
$ 1,720
Task 5 -Plan Review I Permitting
Architectural $
Engineering $
$
Task 6 -Bidding
Architectural $
Engineering $
$
Subtotal Fees
Arch itectu ra I $ 2,520
Engineering $ 1,250
$ 3,770
Reimbursable Expenses $
Total Basic Services & Reimbursable Expenses $ 3,770
Additional Services (NTE) $ 377
MAXIMUM TOTAL COMPENSATION $ 4,147
WMB Architects Inc.
EXHIBIT "e"
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-l" 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" ("Basi& 5eF¥i&es") ("Scope of Work") and reimbursable expenses shall not exceed Two Hundred
Fifty-Eight Thousand Eight Hundred Ten Dollars [$258,810.00]. 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 Two Hundred Eighty-Four Thousand
Six Hundred Ninety-One Dollars [$284,691.00]. Any work performed or expenses incurred for wh ich
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 Two Hundred Fifty-Eight Thousand Eight Hundred Ten Dollars and the total
compensation for Additional Services does not exceed Twenty Five Thousand Eight Hundred Eighty-One
Dollars.
Exhibit C -Compensation Summary .. -~----
Not To Exceed Amount
Original Contrac Amendme ,t No.1
Budget Schedule 3/5/2012 SC#l SC#2 SC#3
Task 1 Investigation $ 8,200 $ 10,438 $ 2,500 IT 1,250
Task 2 Needs Assessment $ 13,390 I $ 14,000 $ 2,700 -
Task 3 Concept Design Development $ 19, 28,500 ~ I,~II I 800
Task 4 iConstruction Documents $ 39,960 $ 71,500 18, 1,720
iTask 5 i Review/Pennitting $ 4,810 $ 10,000 $ 2,250 $ -
ask6 ding $ 3,640 $ 7,500 $ 1,775 $ -
ask 7 ayfinding Schematic $ 24,000 $ 24,000 $ -$ -
ask8 yfinding Design $ 20,000 $ 20,000 $ -$ -
Task 9 Wayfinding Documentation $ 24,000 $ 24,000 $ -$ -
Task 10 Temporary Facilities $ -$ -$ -$ -
ISubtotal Basic Services $157,470 $209,938 $ 35,102 $ 3~
imbursable Expenses $ 5,000 $ 8,000 $ 2,000 $ -
Total Basic Services & Reimbursable Expenses I$~
Additional Services (Not to exceed) 2 __ 16~~?"_ r---"'~"""~-----_"'._0 $ 25, -'-~---Y-'---"r-------r'------"""--"---
MAXIMUM TOTAL COMPENSATION $178,717 $ 284,691
EXHIBIT "C-1"
HOURLY RATE SCHEDULE
Team Fee Schedule
WMB ARCHITEaS
Senior Principal Architect
Principal Architect
Project Architect
Staff Architect
Project Manager
Interior Designer
CADD Draftsperson I. Project Support
Clerical
SQUARE PEG DESIGN
Principal/Creative Director
Principal/Managing Director
Senior Designer
Senior Project Manager
Design Staff
WSP FLACK + KURTZ
President
Executive Vice President
Senior Vice President
Vice President
Senior Associate
Associate
Senior Engineer
Engineer
CAD Manager
Design Engineer
Designer
CAD Operator
Administration
INGRAHAM DE JESSE STRUaURAL ENGINEERS
Principal
. Associate, Structural Engineer
Structural Engil'!eer
Structural Designer
CAD Operator / Designer
Administrative Assistant
• WMB ARCHITECTS
T 209.944.9110
F 209.944.5711
$lGO.OO/hour
$135.00/hour
$125.00/hour
$110.00/hour
$lOO.OO/hour
$lOO.OO/hour
$90.00/hour
$55.00/hour
$230.00/hour
$230.00/hour
$130.00/hour
$130.00/hour
$95.00/hour
$400.00/hour
$300.00/hour
$300.00/hour
$22S.00/hour
$lSO.OO/hour
$lG5.00/hour
$lSS.OO/hour
$130.00/hour
$12S:00/hour
$110.00/hour
$9S.00/hour
$9S.00/hour
$8S.00/hour
$180.00 -$250.00/hour
$160.00 -$210.00/hour
$120.00 -$180.00/hour
$80.00 -S110.00/hour
$80.00/ $110.00/hour
. $60.00/hour
Statements shall be rendered monthly and paid in proportion to amount of services completed.
Additional services required beyond the scope of work will be billed on a time plus materials basis.
5757 Pacific Avenue Suite 226
Stockton CA 9S207
CONFERENCE
FLEXIBLE MEETING
SPACE
AV
OPEN OFFICE
KITCHEN
57
80*
COMMUNITY MEETING
COPY
* CHAIR STORAGE FOR THIS SEATING OPTION NOT AVAILABLE ON
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City Hall Remodel
11-139 09.04.13
GROUND FLOOR PLAN
SCALE :1/4" = 1'-0"
9/4/2013 2:13:44 PM, Copyright WMB, Inc.
PURCHASING
H.R. LOBBY
PURCHASING
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OPEN
OFFICES
M12
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LOBBY
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HALLWAY
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RECEPTION
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M11
City Hall Remodel
11-139 09.04.13
MEZZANINE FLOOR PLAN
SCALE :1/4" = 1'-0"
9/4/2013 2:13:47 PM, Copyright WMB, Inc.
HELP
DESK
OFFICE
210
OPEN
OFFICES
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AREA
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RECEPTION
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SHARED
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C.I.O.
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201
203
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211
(E) STAIRS
(E) STAIRS
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(E) DATA
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218
(E)
VESTUBILE
215
(E)
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216
(E)
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OPEN
OFFICES
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OPEN
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OPERATIONS
PROJECT SERVICES
ENTERPRISE /
OPERATIONS
UTILITIES
WORK AREA
7'X8'7'X8'
7'X8'7'X8'
7'X8'
7'X8'
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6'X6'6'X6'
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9'X10'9'X10'6'X7'6'X7'6'X7'6'X7'6'X7'
6'X7'6'X7'6'X7'6'X7'
6'X7'6'X7'6'X7'6'X7'
City Hall Remodel
11-139 09.04.13
SCALE :1/8" = 1'-0"
SECOND FLOOR PLAN Opt. 'B' 28 Staff with NO Shared Conference Room
9/4/2013 2:13:52 PM, Copyright WMB, Inc.
City of Palo Alto (ID # 4068)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 9/16/2013
City of Palo Alto Page 1
Summary Title: Extend the term of Rail Shuttle Bus Administration
Title: Approval of Amendment No. 20 to Contract No. S0114750 With The
Peninsula Corridor Joint Powers Board for Rail Shuttle Bus Administration to
Extend the Term for Six Months and Add $26,684 for a Total Not To Exceed
Amount of $2,903,928
From: City Manager
Lead Department: Planning and Community Environment
Recommendation
Staff recommends that Council authorize the City Manager to execute the attached
amendment to the Rail Shuttle Bus Administration Agreement with the Peninsula Corridor Joint
Powers Board (JPB), extending the term of the agreement for six months through December 31,
2013 and adding $26,684 to cover the City’s Embarcadero shuttle operating costs during the
period July 1, 2013 through December 31, 2013. This will increase the cumulative contract
expenditure limit since 1999 to $2,903,928.
Background
The City and JPB entered into the Rail Shuttle Bus Administration agreement in 1999 for the
provision of the Palo Alto Shuttle Program through the JPB Caltrain shuttle bus program. The
agreement allows the Palo Alto to extend the term of the program upon mutual consent. There
have been nineteen contract extensions since the original agreement was executed.
The original JPB agreement contained terms and conditions for two distinct services: (1) the
basic Embarcadero/Baylands Caltrain commuter peak period shuttle route, which is part of the
Caltrain commuter shuttle program and currently subsidized 75% by the JPB, and (2) expanded
shuttle routes, including the Crosstown shuttle and special school commute service, funded
exclusively by City of Palo Alto. In January 2011, the City Council approved a three year contract
with MV Transportation to provide service for expanded shuttle routes, including the
Crosstown shuttle that expires in February 2014. The City continues to contract with the JPB for
the Embarcadero Shuttle.
City of Palo Alto Page 2
Discussion
The twentieth amendment to the agreement, in letter format (Attachment A) dated August 19,
2013, provides for continued shuttle services for the Palo Alto shuttle program from July 1,
2013, through December 31, 2013.
In previous years, this agreement was extended to cover funding periods in one-year
increments. However, this year JPB staff is in the process of updating the original Rail Shuttle
Bus Service Administration Agreement from 1999. The new updated agreement will be
provided to the City in the next few months and will cover the period of January 1, 2014
through June 30, 2014. If desired by the City, the new updated agreement could be extended
by formal amendments to cover additional funding periods of up to one year increments.
Staff is requesting that the Council approve the attached amendment to the Rail Shuttle Bus
Administration Agreement (S0114750) to provide continuing operation of the Caltrain
Embarcadero/Baylands shuttle program for the next six months.
The cost of the Embarcadero/Baylands commute period shuttle service for six months from July
1, 2013 through December 31, 2013 is estimated to be $106,734. The contract amendment
with the JPB stipulates that the City reimburse the JPB a sum of $26,684, equal to 25 percent of
the cost of the peak period Embarcadero/Baylands commute shuttle.
Resource Impact
Funding included in the 2013/2014 operating budget for the Palo Alto Shuttle program is
sufficient to cover the service and operating costs for the Embarcadero Shuttle. No additional
resources will be required at this time. The extension of this agreement with the JPB will not
impact the contract with MV Transportation that provides service for the Crosstown shuttle.
Policy Implications
This request is consistent with existing Council direction to continue and expand the Palo Alto
shuttle project.
Environmental Review
On August 2, 1999, the City Council approved a Negative Declaration finding the shuttle project
would not result in any significant environmental impact.
City of Palo Alto Page 3
Attachments:
Attachment A: Caltrain Joint Powers Board Contract Extension Letter Agreement dated
August 19, 2013 (PDF)
August 19,2013
Ms. Ruchika Aggarwal
City of Palo Alto
Transportation Planner
POBox 10250
Palo Alto, Ca 94303
RE: EXTENSION OF BAYLANDSIEMBARCADERO SHUTTLE BUS
ADl.\tIINISTRATION AGREEMENT
Dear Ms. Aggarwal:
Peninsula Corridor Joint Powers Board (bJPB") staff is updating and standardizing the
many old and outdated Rail Shuttle Bus Service Administration Agreements, some of
which go hack almost 20 years. Once this update is complete, the new updated
agreement shall replace the existing agreement that past letter extensions have referenced,
While the update is in progress, we have decided to provide a six month extension of
existing agreements. The new updated agreement shall be provided to you in the next
few months and will cover the period ofJanuary 1,2014 through June 30, 2014. It will
then be extended, if desired by the parties, by formal amendments, to cover additional
funding periods of up to one year increments.
The existing Shuttle Bus Administration Agreement between the City of Palo Alto
(bCity") and the JPS dated March 30, 1998 ("Agreement")terminates on June 30, 2013.
This Letter Agreement extends the term of the Agreement for a SIX MOl'.'TH period
from July I, 2013 through December 31, 2013 ("Extension Period") by mutual consent,
as permitted in the Agreement. All terms of the Agreement remain in full force and
effect, except as expressly revised herein.
The City will be required to pay the JPB $26,684 during the Extension Period,
constituting twenty-five percent (25%) ofthe $106,734 estimated cost of operating
Embarcadero Caltrain Shuttle during the Extension Period.
The Embarcadero service is currently operating at a cost per passenger of
approximately $3.83. The maximum cost per passenger benchmark is $4.00 per
passenger. The additional riders from other entities support continuation of this route.
1
PENINSULA CORRIDOR JOINT POWERS BOARD
1250 San Carlos Ave, -P.O. Box 3006 5263414.1
San Carlos, CA 94070-1306 650.508,6269
City of Palo Alto (ID # 4062)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 9/16/2013
City of Palo Alto Page 1
Summary Title: 2014 Municipal Fee Schedule Amendments
Title: Adoption of a Resolution Approving the 2014 Municipal Fee Schedule
Amendments
From: City Manager
Lead Department: Administrative Services
Recommendation
Staff recommends that the Council approve amendments to the FY 2014 Adopted Municipal Fee
Schedule effective July 1, 2013, as stated in the resolution.
Executive Summary
The recommendations included in this report will allow for minor technical adjustments to the
Municipal Fee Schedule. These clerical amendments consist of modifying copying costs to ensure
consistency and adding three fees which were inadvertently omitted from the 2014 Municipal Fee
Schedule due to clerical errors. The fee amendments will have no effect on the Fiscal Year 2014 Adopted
Operating Budget, as the correct rates were used in the development of revenue estimates for the
budget. Upon approval of the recommendations included in this report, staff will amend the 2014
Adopted Municipal Fee Schedule that is posted on the City’s website.
Background
On June 10, 2013, the City Council approved the 2014 Operating Budget, which included the Municipal
Fee Schedule. Subsequent to the release of the Adopted Municipal Fee Schedule early August 2013, a
small number of clerical errors were discovered, and staff now seeks City Council authorization to
retroactively correct these errors effective July 1, 2013.
Discussion
After the release of the FY 2014 Adopted Municipal Fee Schedule early August 2013, a small number of
clerical errors were discovered as discussed below.
City of Palo Alto Page 2
Zoning Map Booklets: The FY 2014 Adopted Municipal Fee Schedule includes fees for the purchase of
Zoning Map Booklets in two different sections of the schedule. In the City-Wide Fee section of the
document (page 1-1), the fee is listed as $48.00 + $4.00, if mailed, however, in the Planning and
Community Environment Department (page 16-4) the fee is listed as $95.00 + $4.00, if mailed. The fee
was increased in Fiscal Year 2010 and then again as part of the 2014 Budget, however, the City-Wide
section of the document was not updated to account for these Zoning Map Booklets fee increases. The
higher rate, as reflected in the Planning and Community Environment Department, has been used since
2010. Staff recommends to retroactively update the City-Wide Fee Section of the FY 2014 Adopted
Municipal Fee Schedule to ensure consistency within the document.
Construction and Demolition Fees: Prior to Fiscal Year 2014, the Municipal Fee Schedule for the Public
Works Department included fees related to the Construction and Demolition Program. These fees are
assessed for various types of projects and construction valuations to ensure proper recycling and
disposal of demolition debris. The three fees are itemized below:
Commercial and Multi-family projects greater than or equal to $25,000 in valuation:
$225/permit
Single Family and Two Family projects greater than $75,000 in valuation: $205/permit
Single Family and Two Family projects greater than $25,000 and less than $75,000 in valuation:
$77/permit
Prior to FY 2014, the Revenues and associated expenditures associated with this program were
budgeted in the Refuse Fund. As part of the FY 2014 Adopted Budget, the revenues and expenditures
related to this program were shifted to the General Fund, in the Planning and Community Environment
Department. As part of the development of the 2014 Municipal Fee Schedule, staff correctly eliminated
these fees in the Public Works Department – Refuse section; however, inadvertently these fees were not
added to the Planning and Community Environment Department Section. Therefore, staff recommends
to retroactively approve these three fees effective July 1, 2013 so that staff can amend the Planning and
Community Environment Department Section of the FY 2014 Adopted Municipal Fee Schedule.
Resource Impact
No impact on the Fiscal Year 2014 Budget is anticipated as a result of these recommendations. All
recommended fee amendments to the FY 2014 Adopted Municipal Fee Schedule and related revenue
estimates were assumed in the development of the Fiscal Year 2014 Budget.
Policy Implications
This recommendation is consistent with adopted Council policy.
Environmental Review
The action recommended is not a project for the purposes of the California Environmental Quality Act.
City of Palo Alto Page 3
Attachments:
Attachement A: RESO Muni Fee Schedule 2014 (PDF)
Exhibit 1 - Exhibit Revised Muni Fee pages (PDF)
*NOT YET APPROVED*
130904 sh 0131121
Resolution No. ________
Resolution of Intention of the Council of the City of Palo Alto
Amending the Citywide Section and Planning and Community
Environment Department Section of the Fiscal Year 2014 Municipal
Fee Schedule
R E C I T A L S
A. On June 10, 2013, The City Council approved the 2014 Operating Budget, which
included the Municipal Fee Schedule.
B. Subsequent to the release of the Adopted Municipal Fee Schedule early August
2013, a small number of clerical errors were discovered.
C. Prior to FY 2014, the revenues and associated expenditures associated with this
program were budgeted in the Refuse Fund. As part of the FY 2014 Adopted Budget, the
revenue and expenditures related to this program were shifted to the General Fund, in the
Planning and Community Environment Department. As part of the development of the 2014
Municipal Fee Schedule, staff correctly eliminated these fees in the Public Works Department –
Refuse Section; however, inadvertently these fees were not added to the Planning and
Community Environment Department Section.
D. The Municipal Fee Schedule displays the fees for Zoning Map Booklets in the
Citywide section as well as the Planning and Community Environment section of the document.
The fee included in the Citywide section of the document incorrectly states a lower fee than the
Planning and Community Environment section.
E. The minor technical adjustments to the Municipal Fee Schedule are for four fees
retroactive to July 1, 2013. These adjustments will ensure consistency of two fees (Zoning Map
Booklets) across the schedule and add three fees (Construction and Demolition Fees) which
were inadvertently omitted from the 2014 Municipal Fee Schedule.
F. The fee amendments will have no effect on the Fiscal Year 2014 Operating
Budget, as the correct rates were used in the development of revenue estimates for the
budget.
G. The fee amendments will be retroactive to July 1, 2013.
NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows:
SECTION 1. The Municipal Fee Schedule is hereby amended as stated on the
attached Exhibit “A” – Citywide Section and Planning and Community Environment Department
Section of the Fiscal Year 2014 Municipal Fee Schedule.
*NOT YET APPROVED*
130904 sh 0131121
//
//
//
SECTION 2. The Council finds that this is not a project under the California
Environmental Quality Act and, therefore, no environmental impact assessment is necessary.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
__________________________ _____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
__________________________ _____________________________
Sr. Assistant City Attorney City Manager
_____________________________
Director of Planning & Community Environment
_____________________________
Director of Administrative Services
FY 2013 FEE FY 2014 FEE
Map Scales
Zoning Map Booklet $95.00 + $4.00 if mailed $95.00 + $4.00 if mailed
CITYWIDE FEES
City of Palo Alto FY 2014 Municipal Fee Schedule 1- 1
Construction and Demolition
Commercial and Multi-Family projects greater than or
equal to $25,000 in valuation
Single Family and Two Family projects greater than
$75,000 in valuation
Single Family and Two Family projects greater than
$25,000 and less than $75,000 in valuation
FY 2013 FEE FY 2014 FEE
PLANNING & COMMUNITY ENVIRONMENT DEPARTMENT
Building Division
Whenever work is started without application approval, an investigation fee in addition to the permit fee shall be collected whether
or not a permit application is then or subsequently approved. The investigation fee shall be equal to the amount of the application
fee required.
$230.00/permit $230.00/permit
$205.00/permit $205.00/permit
$77.00/permit $77.00/permit
City of Palo Alto FY 2014 Municipal Fee Schedule 15-1
City of Palo Alto (ID # 4057)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 9/16/2013
City of Palo Alto Page 1
Summary Title: Mayfield Reservoir Emergency Repairs Contract
Title: Approval of Utilities Enterprise Fund Construction Contract No.
C141541174 with DN Tanks, Inc. In a Not to Exceed Amount of $340,000 for
Repairs at Mayfield Reservoir
From: City Manager
Lead Department: Utilities
Recommendation
Staff recommends that Council approve and authorize the City Manager or his designee to
execute the attached contract with DN Tanks, Inc. (Attachment A) in a not to exceed amount of
$340,000 for repair work completed on the City’s Mayfield Reservoir.
Background
The Mayfield Reservoir is an underground concrete structure which was built in the late 1920’s.
To help ensure its continued functionality the reservoir was drained from October 2011 to
January 2013 to allow extensive seismic rehabilitation work to be performed and to rebuild the
adjacent pump station. After the rehabilitation work was completed in January 2013, the
reservoir was refilled. However, the cracks which had formed in the concrete slabs and floors
caused the reservoir to leak.
Between January and June 2013, while the reservoir was filled, the City made a number of
attempts to locate and repair the cracks and stop the leaks. Divers were hired to enter the tank
on two separate occasions (February 25, 2013 and April 1, 2013) to attempt to repair the
problem areas. Some of the cracks were located and sealed, however, the amount of water
leaking from the reservoir continued unabated.
After further analysis, staff found that the rate of water leakage from the reservoir was
approaching 10,000 gallons a day and that the leaking water was causing a significant risk of
damage to nearby properties, as well as to the reservoir structure itself. To reduce the risks
City of Palo Alto Page 2
caused by the leaks, the reservoir was emptied again in mid-June, 2013 to allow further
inspection of the concrete and to determine what could be done to repair the cracks.
The City’s staff and Engineer of Record (URS) evaluated the problem and determined that the
cracks in the reservoir had not been caused by the recent seismic rehabilitation activity but
were due to the age of the concrete and the expansion and contraction of the structure during
the time the reservoir had been empty for pump station and seismic repairs.
The Mayfield reservoir is a critical part of preserving the level of service for the City’s
emergency water supply and is an integral part of the City’s water reserve resources for fire
suppression. When the reservoir is not filled, the City’s water storage capacity is reduced by 4
million gallons and, as a result, there is an increased risk that the City may not have sufficient
water supply to provide adequate fire suppression during certain emergency events.
Discussion
To minimize the risk of further damage to the reservoir and adjacent properties, and to avoid
concerns regarding the City’s ability to respond to emergency fire suppresssion events, staff
requested, and the City Manager agreed, that it was critically important to proceed with the
required repair work on the Mayfield Reservoir as quickly as possible. DN Tanks, Inc. was
determined to be one of the few west coast based contractors which have the ability to
perform this specialized repair work. DN Tanks had a repair crew available and was able to
commit to perform and complete the necessary repair work before the start of school on
August 15th at Lucille Nixon Elementary School, which is next to the reservoir, as the school’s
parking lot was affected by staging of construction equipment.
The construction work had been disrupting the parking and reducing the available playground
space at the school since the construction work began in October, 2011. In response to the
schools concerns about continuing disruption to their activities, the City had reached an
agreement with the School Principal to make every effort to complete all the work prior to the
start of the school year beginning August 15, 2013.
Due to the urgent nature of this repair work, the Utilities Department requested approval
through Purchasing from the City Manager for a sole-source contract with DN Tanks so that
repair work could begin immediately. When the contract was negotiated and awarded during
the Council’s July, 2013 summer recess, the cost of the work was not expected to exceed
$250,000, which was within the City Manager’s contracting authority.
However, as DN Tanks proceeded to perform its crack assessment within the reservoir and
City of Palo Alto Page 3
began filling the voids that had developed under the reservoir and sealing cracks in the
concrete slab inside the reservoir, it was noted that the joint sealant material between the slabs
was delaminating in a number of locations. After additional inspection, DN Tanks
recommended that additional work was required to reduce the leakage from the reservoir.
These joints had been previously sealed in the early 1990’s, and more recently had been
resealed by the seismic rehabiliation contractor, Anderson Pacific. These problems were not
found during the intial inspection and were identified near the end of the crack sealing process.
Staff and the City’s Engineer of Record (URS) are now reviewing the sealant work performed
and materials used during the seismic rehabilition project to determine if the contractor may
bear some responsibility for the costs which the City incurred to repair the reservoir leaks.
This unanticipated additional repair work was estimated to require an additional cost of
$90,000 in labor and materials, and two additional weeks of time to complete. The City’s
Engineer of Record (URS) reviewed the need for, and cost estimate related to the additional
work and recommended that it be done while DN Tanks was still mobilized on the site. Utilities
staff concurred recommended to the City Manager that the City should proceed with the
additional repairs immediately, s as taff felt that any delays in contracting for the additional
work would result in the de-mobilization of DN Tanks’ work crews at the site and an increase in
the cost to re-stage the work site. More delays would also have exacerbated the disruptions for
the Lucille Nixon Elementary School and increased the risk associated with having a key fire
suppresssion water source continue to be unavailable during the summer fire season. This
additional repair work caused the cost for the reservoir repairs to increase to a total not to
exceed amount of $340,000, an amount which exceeded the City Manager’s signature
authority. It is for this reason that staff now requests that the Council approve, and authorize
the City Manager to execute the attached construction contract with DN Tanks, Inc.
Staff confirmed with the Contractor’s State License Board that DN Tanks, Inc. has an active
California license on file. Staff also checked references supplied by the contractor for previous
work performed and found no significant complaints.
The work completed on the reservoir ahead of Council’s now requested approval was of an
urgent nature and was required to address possible structural problems developing at the
reservoir resulting from the undermining of the soil under the reservoir from the water leakage.
When the additional problems with the joints was identified at the end of the crack repair work
conducted in July, 2013, a business decision was made to keep the contractor on site to avoid
increasing the amount of time the reservoir would be out of service during the fire season; to
avoid additional charges that would result for the contractor having to demobilize for some
uncertain time period and re-mobilize to complete the needed repairs; and to avoid increased
disruption to the Lucille Nixon Elementary School.
City of Palo Alto Page 4
While Utilities staff learned of the expanded problems in just enough time to have informed the
City Manager so that an item could have been placed on the Council agenda for approval of the
amendment—last minute if necessary-- before the last August meeting, this was not done as
staff focused on the urgency of getting the work done. In review of this item, the City Manager
has made it clear that Utilities staff should have made extra efforts to ensure that Council was
notified at the time of the decision to move forward quickly with the repair work earlier in the
process. Staff certainly concurs.
Resource Impact
Funds to pay for this repair work to the Mayfield Reservoir, in the amount of up to $340,000
are included in the WS-11004 Water Supply System Improvements. The work was managed by
existing Utility Engineering staff and Engineer of Record (URS).
Policy Implications
The approval of this contract is consistent with the Council-approved Utilities Strategic Plan-
Strategic Objections: BP1. Ensure a reliable supply of utility resources, BP2, and operate the
utility systems safely, BP3.
Environmental Review
This project is categorically exempt from California Environmental Quality Act (CEQA) pursuant
to CEQA Guidelines 15301 (b) repair, maintenance of existing facilities and 15302 (c)
replacement or reconstruction of existing facilities.
Attachments:
Attachment A: Revised Construction Contract - DN Tanks, Inc (PDF)
1 Rev. July 2012
CONSTRUCTION CONTRACT
CONSTRUCTION CONTRACT
Contract No. C14151174
City of Palo Alto
and
DN Tanks, Inc.
PROJECT
“REPAIR AT MAYFIELD RESERVOIR”
2 Rev. July 2012
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…………………………………………………………. ......................... 5
3.1 List of Documents …………………………………………………………………………………………. ..... 5
3.2 Order of Precedence …………………………………………………………………………… ................ 6
SECTION 4. THE WORK ………………………………………………………………………………… .............................. 6
SECTION 5. PROJECT TEAM ………………………………………………………………………….. ............................. 7
SECTION 6. TIME OF COMPLETION ………………………………………………………………….. .......................... 7
6.1 Time Is of Essence ........................................................................................ ……… 7
6.2 Commencement of Work ..................................................................................... 7
6.3 Contract Time ....................................................................................................... 7
6.4 Liquidated Damages ............................................................................................. 7
6.4.1 Entitlement……………………………………………………………………………………………. 7
6.4.2 Daily Amount…………………………………………………………………………………………. 8
6.4.3 Exclusive Remedy………………………………………………………………………………….. 8
6.4.4 Other Remedies…………………………………………………………………………………... 8
6.5 Adjustments to Contract Time ........................................................................... … 8
SECTION 7. COMPENSATION TO CONTRACTOR………………………………………………………………………... 8
7.1 Contract Sum ……………………………………………………………………………………………………… 8
7.2 Full Compensation …………………………………………………………………………………………….. 9
7.3 Compensation for Extra or Deleted Work …………………………………………………………….9
7.3.1 Self Performed Work………………………………………………………………………………… 9
7.3.2 Subcontractors…………………………………………………………………………………………. 9
SECTION 8. STANDARD OF CARE ................................................................................................... 9
SECTION 9. INDEMNIFICATION ...................................................................................................... 10
9.1 Hold Harmless…………………………………………………………………………………………………….. 10
9.2 Survival………………………………………………………………………………………………………………. 10
SECTION 10. NONDISCRIMINATION .............................................................................................. 10
SECTION 11. INSURANCE AND BONDS .......................................................................................... 10
3 Rev. July 2012
CONSTRUCTION CONTRACT
SECTION 12. PROHIBITION AGAINST TRANSFERS .......................................................................... 11
SECTION 13. NOTICES .................................................................................................................... 11
13.1 Method of Notice ………………………………………………………………………………………………..11
13.2 Notice Recipients ................................................................................................. 11
13.3 Change of Address ............................................................................................... 12
14.1 Resolution of Contract Disputes ........................................................................... 12
14.2 Resolution of Other Disputes ............................................................................... 12
14.2.1 Non‐Contract Disputes ……………………………………………………………………………….12
14.2.2 Litigation, City Election ……………………………………………………...........................13
14.3 Submission of Contract Dispute …………………………………………………………………………..13
14.3.1 By Contractor …………………………………………………………………………………………. 13
14.3.2 By City ……………………………………………………………………………………………………. 13
14.4 Contract Dispute Resolution Process ............................................................... …… 13
14.4.1 Direct Negotiation………………………………………………………………………… ………….13
14.4.2 Deferral of Contract Disputes ………………………………………………………………… 14
14.4.3 Mediation ………………………………………………………………………………………………….14
14.4.4 Binding Arbitration ……………………………………………………………………………………15
14.5 Non‐Waiver …………………………………………………………………………………………………………16
SECTION 15. DEFAULT ................................................................................................................... 16
15.1 Notice of Default .................................................................................................. 16
15.2 Opportunity to Cure Default ................................................................................ 16
SECTION 16. CITY'S RIGHTS AND REMEDIES .................................................................................. 16
16.1 Remedies Upon Default ....................................................................................... 16
16.1.1 Delete Certain Servic………………………………………………………...........................16
16.1.2 Perform and Withhold ……………………………………………………………………………. 16
16.1.3 Suspend The Construction Contract ………………………………………………………….16
16.1.4 Terminate the Construction Contract for Default ……………………………………..17
16.1.5 Invoke the Performance Bond ………………………………………………………………….17
16.1.6 Additional Provisions ……………………………………………………………………………….17
16.2 Delays by Sureties ................................................................................................ 17
16.3 Damages to City ................................................................................................... 17
16.3.1 For Contractor's Default …………………………………………………………………………..17
16.3.2 Compensation for Losses ………………………………………………………………………….17
16.5 Suspension by City for Convenience ..................................................................... 18
16.6 Termination Without Cause ................................................................................. 18
4 Rev. July 2012
CONSTRUCTION CONTRACT
16.6.1 Compensation ………………………………………………………………………………………….18
16.6.2 Subcontractors …………………………………………………………………………………………18
16.7 Contractor’s Duties Upon Termination ................................................................. 19
SECTION 17. CONTRACTOR'S RIGHTS AND REMEDIES ................................................................... 19
17.1 Contractor’s Remedies ......................................................................................... 19
17.1.1 For Work Stoppage ………………………………………………………………………………….. 19
17.1.2 For City's Non‐Payment …………………………………………………………………………… 19
17.2 Damages to Contractor ........................................................................................ 19
SECTION 18. ACCOUNTING RECORDS ............................................................................................ 19
18.1 Financial Management and City Access .......................................................... ……. 19
18.2 Compliance with City Requests ........................................................................ …. 20
SECTION 19. INDEPENDENT PARTIES ............................................................................................. 20
SECTION 20. NUISANCE ................................................................................................................. 20
SECTION 21. PERMITS AND LICENSES ............................................................................................ 20
SECTION 22. WAIVER .................................................................................................................... 20
SECTION 23. GOVERNING LAW ..................................................................................................... 20
SECTION 24. COMPLETE AGREEMENT ........................................................................................... 21
SECTION 25. SURVIVAL OF CONTRACT .......................................................................................... 21
SECTION 26. PREVAILING WAGES .................................................................................................. 21
SECTION 27. NON APPROPRIATION .............................................................................................. 21
SECTION 28. GOVERNMENTAL POWERS ........................................................................................ 21
SECTION 29. ATTORNEY FEES ........................................................................................................ 21
SECTION 30. COUNTERPARTS ........................................................................................................ 21
SECTION 31. SEVERABILITY ........................................................................................................... 21
5 Rev. July 2012
CONSTRUCTION CONTRACT
CONSTRUCTION CONTRACT
THIS CONSTRUCTION CONTRACT entered into on July 11, 2013 (“Execution Date”) by and between the CITY
OF PALO ALTO, a California chartered municipal corporation ("City"), and DN TANKS, INC. ("Contractor"), is
made with reference to the following:
R E C I T A L S:
A. City is a municipal corporation duly organized and validly existing under the laws of the State of
California with the power to carry on its business as it is now being conducted under the statutes of the
State of California and the Charter of City.
B. Contractor is a corporation duly organized and in good standing in the State of California,
Contractor’s License Number 979914. 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 July 10, 2013, City issued a Sole Source Justification for the Repair at Mayfield Reservoir
(“Project”). In response to the sole source, Contractor provided a quote.
D. City and Contractor desire to enter into this Construction Contract for the Project, and other
services as identified in the Bid Documents for the Project upon the following terms and conditions.
NOW THEREFORE, in consideration of the mutual promises and undertakings hereinafter set forth
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, it is mutually agreed by and between the undersigned parties as follows:
SECTION 1 INCORPORATION OF RECITALS AND DEFINITIONS.
1.1 Recitals.
All of the recitals are incorporated herein by reference.
1.2 Definitions.
Capitalized terms shall have the meanings set forth in this Construction Contract and/or in the
General Conditions. If there is a conflict between the definitions in this Construction Contract and
in the General Conditions, the definitions in this Construction Contract shall prevail.
SECTION 2 THE PROJECT.
The Project is the Repair at Mayfield Reservoir ("Project").
SECTION 3 THE CONTRACT DOCUMENTS.
3.1 List of Documents.
The Contract Documents (sometimes collectively referred to as “Agreement” or “Bid Documents”) consist
of the following documents which are on file with the Purchasing Division and are hereby incorporated by
reference.
1) Change Orders
2) Field Change Orders
6 Rev. July 2012
CONSTRUCTION CONTRACT
3) Contract
4) Project Plans and Drawings
5) Technical Specifications
6) Special Provisions (not applicable)
7) Notice Inviting Bids (not applicable)
8) Instructions to Bidders (not applicable)
9) General Conditions
10) Bidding Addenda (not applicable)
11) Invitation for Bids (not applicable)
12) Contractor's Bid/Non‐Collusion Affidavit (not applicable)
13) Reports listed in the Bidding Documents (not applicable)
14) Public Works Department’s Standard Drawings and Specifications dated 2007 and
updated from time to time
15) Utilities Department’s Water, Gas, Wastewater, Electric Utilities Standards dated 2005
and updated from time to time
16) City of Palo Alto Traffic Control Requirements
17) City of Palo Alto Truck Route Map and Regulations
18) Notice Inviting Pre‐Qualification Statements, Pre‐Qualification Statement, and Pre‐
Qualification Checklist (if applicable)
19) Performance and Payment Bonds
20) Insurance Forms
21) URS Memorandum dated August 12, 2013
3.2 Order of Precedence.
For the purposes of construing, interpreting and resolving inconsistencies between and among the
provisions of this Contract, the Contract Documents shall have the order of precedence as set forth in the
preceding section. If a claimed inconsistency cannot be resolved through the order of precedence, the City
shall have the sole power to decide which document or provision shall govern as may be in the best
interests of the City.
SECTION 4 THE WORK.
The Work includes all labor, materials, equipment, services, permits, fees, licenses and taxes, and all other
things necessary for Contractor to perform its obligations and complete the Project, including, without
7 Rev. July 2012
CONSTRUCTION CONTRACT
limitation, any Changes approved by City, in accordance with the Contract Documents and all Applicable
Code Requirements.
SECTION 5 PROJECT TEAM.
In addition to Contractor, City has retained, or may retain, consultants and contractors to provide
professional and technical consultation for the design and construction of the Project. The Project requires
that Contractor operate efficiently, effectively and cooperatively with City as well as all other members of
the Project Team and other contractors retained by City to construct other portions of the Project.
SECTION 6 TIME OF COMPLETION.
6.1 Time Is of Essence.
Time is of the essence with respect to all time limits set forth in the Contract Documents.
6.2 Commencement of Work.
Contractor shall commence the Work on the date specified in City’s Notice to Proceed.
6.3 Contract Time.
Work hereunder shall begin on the date specified on the City’s Notice to Proceed and shall be
completed no later than August 23, 2013.
6.4 Liquidated Damages.
6.4.1 Entitlement.
City and Contractor acknowledge and agree that if Contractor fails to fully and
satisfactorily complete the Work within the Contract Time, City will suffer, as a result of
Contractor’s failure, substantial damages which are both extremely difficult and
impracticable to ascertain. Such damages may include, but are not limited to:
(i) Loss of public confidence in City and its contractors and consultants.
(ii) Loss of public use of public facilities.
(iii) Extended disruption to public.
8 Rev. July 2012
CONSTRUCTION CONTRACT
6.4.2 Daily Amount.
City and Contractor have reasonably endeavored, but failed, to ascertain the actual
damage that City will incur if Contractor fails to achieve Substantial Completion of the
entire Work within the Contract Time. Therefore, the parties agree that in addition to all
other damages to which City may be entitled other than delay damages, in the event
Contractor shall fail to achieve Substantial Completion of the entire Work within the
Contract Time, Contractor shall pay City as liquidated damages the amount of $500 per
day for each Day occurring after the expiration of the Contract Time until Contractor
achieves Substantial Completion of the entire Work. The liquidated damages amount is
not a penalty but considered to be a reasonable estimate of the amount of damages City
will suffer by delay in completion of the Work.
6.4.3 Exclusive Remedy.
City and Contractor acknowledge and agree that this liquidated damages provision shall
be City’s only remedy for delay damages caused by Contractor’s failure to achieve
Substantial Completion of the entire Work within the Contract Time.
6.4.4 Other Remedies.
City is entitled to any and all available legal and equitable remedies City may have where
City’s Losses are caused by any reason other than Contractor’s failure to achieve
Substantial Completion of the entire Work within the Contract Time.
6.5 Adjustments to Contract Time.
The Contract Time may only be adjusted for time extensions approved by City and agreed to by
Change Order executed by City and Contractor in accordance with the requirements of the
Contract Documents.
SECTION 7 COMPENSATION TO CONTRACTOR.
7.1 Contract Sum.
Contractor shall be compensated for satisfactory completion of the Work in compliance with the
Contract Documents in the not to exceed Contract Sum of Three Hundred Forty Thousand Dollars
($340,000).
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9 Rev. July 2012
CONSTRUCTION CONTRACT
7.2 Full Compensation.
The Contract Sum shall be full compensation to Contractor for all Work provided by Contractor
and, except as otherwise expressly permitted by the terms of the Contract Documents, shall cover
all Losses arising out of the nature of the Work or from the acts of the elements or any unforeseen
difficulties or obstructions which may arise or be encountered in performance of the Work until
its Acceptance by City, all risks connected with the Work, and any and all expenses incurred due to
suspension or discontinuance of the Work. The Contract Sum may only be adjusted for Change
Orders issued, executed and satisfactorily performed in accordance with the requirements of the
Contract Documents.
7.3 Compensation for Extra or Deleted Work.
The Contract Sum shall be adjusted (either by addition or credit) for Changes in the Work involving
Extra Work or Deleted Work based on one or more of the following methods to be selected by
City:
1. Unit prices stated in the Contract Documents or agreed upon by City and Contractor,
which unit prices shall be deemed to include Contractor Markup and
Subcontractor/Sub‐subcontractor Markups permitted by this Section.
2. A lump sum agreed upon by City and Contractor, based on the estimated Allowable
Costs and Contractor Markup and Subcontractor Markup computed in accordance
with this Section.
3. Contractor’s Allowable Costs, plus Contractor Markup and Subcontractor Markups
applicable to such Extra Work computed in accordance with this Section.
Contractor Markup and Subcontractor/Sub‐subcontractor Markups set forth herein are the full
amount of compensation to be added for Extra Work or to be subtracted for Deleted Work that is
attributable to overhead (direct and indirect) and profit of Contractor and of its Subcontractors
and Sub‐subcontractors, of every Tier. When using this payment methodology, Contractor
Markup and Subcontractor/Sub‐subcontractor Markups, which shall not be compounded, shall be
computed as follows:
7.3.1 Markup Self‐Performed Work.
10% of the Allowable Costs for that portion of the Extra Work or Deleted Work to be
performed by Contractor with its own forces.
7.3.2 Markup for Work Performed by Subcontractors.
15% of the Allowable Costs for that portion of the Extra Work or Deleted Work to be
performed by a first Tier Subcontractor.
SECTION 8 STANDARD OF CARE.
Contractor agrees that the Work shall be performed by qualified, experienced and well‐supervised
personnel. All services performed in connection with this Construction Contract shall be performed in a
manner consistent with the standard of care under California law applicable to those who specialize in
providing such services for projects of the type, scope and complexity of the Project.
10 Rev. July 2012
CONSTRUCTION CONTRACT
SECTION 9 INDEMNIFICATION.
9.1 Hold Harmless.
To the fullest extent allowed by law, Contractor will defend, indemnify, and hold harmless City, its
City Council, boards and commissions, officers, agents, employees, representatives and volunteers
(hereinafter collectively referred to as "Indemnitees"), through legal counsel acceptable to City,
from and against any and all Losses arising directly or indirectly from, or in any manner relating to
any of, the following:
(i) Performance or nonperformance of the Work by Contractor or its Subcontractors or Sub‐
subcontractors, of any tier;
(ii) Performance or nonperformance by Contractor or its Subcontractors or Sub‐
subcontractors of any tier, of any of the obligations under the Contract Documents;
(iii) The construction activities of Contractor or its Subcontractors or Sub‐subcontractors, of
any tier, either on the Site or on other properties;
(iv) The payment or nonpayment by Contractor to any of its employees, Subcontractors or
Sub‐subcontractors of any tier, for Work performed on or off the Site for the Project; and
(v) Any personal injury, property damage or economic loss to third persons associated with
the performance or nonperformance by Contractor or its Subcontractors or Sub‐
subcontractors of any tier, of the Work.
However, nothing herein shall obligate Contractor to indemnify any Indemnitee for Losses
resulting from the sole or active negligence or willful misconduct of the Indemnitee. Contractor
shall pay City for any costs City incurs to enforce this provision. Nothing in the Contract
Documents shall be construed to give rise to any implied right of indemnity in favor of Contractor
against City or any other Indemnitee.
9.2 Survival.
The provisions of Section 9 shall survive the termination of this Construction Contract.
SECTION 10 NONDISCRIMINATION.
As set forth in Palo Alto Municipal Code section 2.30.510, Contractor certifies that in the performance of
this Agreement, it shall not discriminate in the employment of any person because of the race, skin color,
gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status,
familial status, weight or height of such person. Contractor acknowledges that it has read and understands
the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination
Requirements and the penalties for violation thereof, and will comply with all requirements of Section
2.30.510 pertaining to nondiscrimination in employment.
SECTION 11 INSURANCE AND BONDS.
On or before the Execution Date, Contractor shall provide City with evidence that it has obtained insurance
and Performance and Payment Bonds satisfying all requirements in Article 11 of the General Conditions.
Failure to do so shall be deemed a material breach of this Construction Contract.
11 Rev. July 2012
CONSTRUCTION CONTRACT
SECTION 12 PROHIBITION AGAINST TRANSFERS.
City is entering into this Construction Contract based upon the stated experience and qualifications of the
Contractor and its subcontractors set forth in Contractor’s Bid. Accordingly, Contractor shall not assign,
hypothecate or transfer this Construction Contract or any interest therein directly or indirectly, by
operation of law or otherwise without the prior written consent of City. Any assignment, hypothecation or
transfer without said consent shall be null and void.
The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of
Contractor or of any general partner or joint venturer or syndicate member of Contractor, if the Contractor
is a partnership or joint venture or syndicate or co‐tenancy shall result in changing the control of
Contractor, shall be construed as an assignment of this Construction Contract. Control means more than
fifty percent (50%) of the voting power of the corporation or other entity.
SECTION 13 NOTICES.
13.1 Method of Notice.
All notices, demands, requests or approvals to be given under this Construction Contract shall be given in
writing and shall be deemed served on the earlier of the following:
(i) On the date delivered if delivered personally;
(ii) On the third business day after the deposit thereof in the United States mail, postage prepaid, and
addressed as hereinafter provided;
(iii) On the date sent if sent by facsimile transmission;
(iv) On the date sent if delivered by electronic mail; or
(v) On the date it is accepted or rejected if sent by certified mail.
13.2 Notice Recipients.
All notices, demands or requests (including, without limitation, Claims) from Contractor to City
shall include the Project name and the number of this Construction Contract and shall be
addressed to City at:
To City: City of Palo Alto
City Clerk
250 Hamilton Avenue
P.O. Box 10250
Palo Alto, CA 94303
Copy to: City of Palo Alto
Public Works Administration
250 Hamilton Avenue
Palo Alto, CA 94301
Attn:
Or
12 Rev. July 2012
CONSTRUCTION CONTRACT
City of Palo Alto
Utilities Engineering
250 Hamilton Avenue
Palo Alto, CA 94301
Attn: Romel Antonio
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:
DN Tanks, Inc.
351 Cypress Lane
El Cajon, CA 92020
13.3 Change of Address.
In the event of any change of address, the moving party shall notify the other party of the change
of address in writing. Each party may, by written notice only, add, delete or replace any
individuals to whom and addresses to which notice shall be provided.
SECTION 14 DISPUTE RESOLUTION.
14.1 Resolution of Contract Disputes.
Contract Disputes shall be resolved by the parties in accordance with the provisions of this Section
14, in lieu of any and all rights under the law that either party have its rights adjudged by a trial
court or jury. All Contract Disputes shall be subject to the Contract Dispute Resolution Process set
forth in this Section 14, which shall be the exclusive recourse of Contractor and City for such
Contract Disputes.
14.2 Resolution of Other Disputes.
14.2.1 Non‐Contract Disputes.
Contract Disputes shall not include any of the following:
(i) Penalties or forfeitures prescribed by statute or regulation imposed by a
governmental agency;
(ii) Third party tort claims for personal injury, property damage or death relating to
any Work performed by Contractor or its Subcontractors or Sub‐subcontractors
of any tier;
(iii) False claims liability under California Government Code Section 12650, et. seq.;
(iv) Defects in the Work first discovered by City after Final Payment by City to
Contractor;
(v) Stop notices; or
(vi) The right of City to specific performance or injunctive relief to compel
performance of any provision of the Contract Documents.
13 Rev. July 2012
CONSTRUCTION CONTRACT
14.2.2 Litigation, City Election.
Matters that do not constitute Contract Disputes shall be resolved by way of an action
filed in the Superior Court of the State of California, County of Santa Clara, and shall not
be subject to the Contract Dispute Resolution Process. However, the City reserves the
right, in its sole and absolute discretion, to treat such disputes as Contract Disputes.
Upon written notice by City of its election as provided in the preceding sentence, such
dispute shall be submitted by the parties and finally decided pursuant to the Contract
Dispute Resolution Process in the manner as required for Contract Disputes, including,
without limitation, City’s right under Paragraph 14.4.2 to defer resolution and final
determination until after Final Completion of the Work.
14.3 Submission of Contract Dispute.
14.3.1 By Contractor.
Contractors may commence the Contract Dispute Resolution Process upon City's written
response denying all or part of a Claim pursuant to Paragraph 4.2.9 or 4.2.10 of the
General Conditions. Contractor shall submit a written Statement of Contract Dispute (as
set forth below) to City within seven (7) Days after City rejects all or a portion of
Contractor's Claim. Failure by Contractor to submit its Statement of Contract Dispute in a
timely manner shall result in City’s decision by City on the Claim becoming final and
binding. Contractor’s Statement of Contract Dispute shall be signed under penalty of
perjury and shall state with specificity the events or circumstances giving rise to the
Contract Dispute, the dates of their occurrence and the asserted effect on the Contract
Sum and the Contract Time. The Statement of Contract Dispute shall include adequate
supporting data to substantiate the disputed Claim. Adequate supporting data for a
Contract Dispute relating to an adjustment of the Contract Time shall include both of the
following:
(i) All of the scheduling data required to be submitted by Contractor under the
Contract Documents to obtain extensions of time and adjustments to the
Contract Time and
(ii) A detailed, event‐by‐event description of the impact of each event on
completion of Work. Adequate data to support a Statement of Contract Dispute
involving an adjustment of the Contract Sum must include both of the following:
(a) A detailed cost breakdown and
(b) Supporting cost data in such form and including such information and
other supporting data as required under the Contract Documents for
submission of Change Order Requests and Claims.
14.3.2 By City.
City's right to commence the Contract Dispute Resolution Process shall arise at any time
following City's actual discovery of the circumstances giving rise to the Contract Dispute.
City asserts Contract Disputes in response to a Contract Dispute asserted by Contractor.
A Statement of Contract Dispute submitted by City shall state the events or
circumstances giving rise to the Contract Dispute, the dates of their occurrence and the
damages or other relief claimed by City as a result of such events.
14.4 Contract Dispute Resolution Process.
The parties shall utilize each of the following steps in the Contract Dispute Resolution
Process in the sequence they appear below. Each party shall participate fully and in good
faith in each step in the Contract Dispute Resolution Process, and good faith effort shall
be a condition precedent to the right of each party to proceed to the next step in the
process.
14.4.1 Direct Negotiations.
Designated representatives of City and Contractor shall meet as soon as possible (but not
later than ten (10) Days after receipt of the Statement of Contract Dispute) in a good
14 Rev. July 2012
CONSTRUCTION CONTRACT
faith effort to negotiate a resolution to the Contract Dispute. Each party shall be
represented in such negotiations by an authorized representative with full knowledge of
the details of the Claims or defenses being asserted by such party in the negotiations,
and with full authority to resolve such Contract Dispute then and there, subject only to
City’s obligation to obtain administrative and/or City Council approval of any agreed
settlement or resolution. If the Contract Dispute involves the assertion of a right or claim
by a Subcontractor or Sub‐subcontractor, of any tier, against Contractor that is in turn
being asserted by Contractor against City (“Pass‐Through Claim”), then the Subcontractor
or Sub‐Subcontractor shall also have a representative attend the negotiations, with the
same authority and knowledge as described above. Upon completion of the meeting, if
the Contract Dispute is not resolved, the parties may either continue the negotiations or
any party may declare negotiations ended. All discussions that occur during such
negotiations and all documents prepared solely for the purpose of such negotiations shall
be confidential and privileged pursuant to California Evidence Code Sections 1119 and
1152.
14.4.2 Deferral of Contract Disputes.
Following the completion of the negotiations required by Paragraph 14.4.1, all
unresolved Contract Disputes shall be deferred pending Final Completion of the Project,
subject to City’s right, in its sole and absolute discretion, to require that the Contract
Dispute Resolution Process proceed prior to Final Completion. All Contract Disputes that
have been deferred until Final Completion shall be consolidated within a reasonable time
after Final Completion and thereafter pursued to resolution pursuant to this Contract
Dispute Resolution Process. The parties can continue informal negotiations of Contract
Disputes; provided, however, that such informal negotiations shall not be alter the
provisions of the Agreement deferring final determination and resolution of unresolved
Contract Disputes until after Final Completion.
14.4.3 Mediation.
If the Contract Dispute remains unresolved after negotiations pursuant to Paragraph
14.4.1, the parties shall submit the Contract Dispute to non‐binding mediation before a
mutually acceptable third party mediator.
.1 Qualifications of Mediator. The parties shall endeavor to select a mediator who
is a retired judge or an attorney with at least five (5) years of experience in
public works construction contract law and in mediating public works
construction disputes. In addition, the mediator shall have at least twenty (20)
hours of formal training in mediation skills.
.2 Submission to Mediation and Selection of Mediator. The party initiating
mediation of a Contract Dispute shall provide written notice to the other party
of its decision to mediate. In the event the parties are unable to agree upon a
mediator within fifteen (15) Days after the receipt of such written notice, then
the parties shall submit the matter to the American Arbitration Association
(AAA) at its San Francisco Regional Office for selection of a mediator in
accordance with the AAA Construction Industry Mediation Rules.
.3 Mediation Process. The location of the mediation shall be at the offices of City.
The costs of mediation shall be shared equally by both parties. The mediator
shall provide an independent assessment on the merits of the Contract Dispute
and recommendations for resolution. All discussions that occur during the
mediation and all documents prepared solely for the purpose of the mediation
shall be confidential and privileged pursuant to California Evidence Code
Sections 1119 and 1152.
15 Rev. July 2012
CONSTRUCTION CONTRACT
14.4.4 Binding Arbitration.
If the Contract Dispute is not resolved by mediation, then any party may submit the
Contract Dispute for final and binding arbitration pursuant to the provisions of California
Public Contract Code Sections 10240, et seq. The award of the arbitrator therein shall be
final and may be entered as a judgment by any court of competent jurisdiction. Such
arbitration shall be conducted in accordance with the following:
.1 Arbitration Initiation. The arbitration shall be initiated by filing a complaint in
arbitration in accordance with the regulations promulgated pursuant to
California Public Contract Code Section 10240.5.
.2 Qualifications of the Arbitrator. The arbitrator shall be approved by all parties.
The arbitrator shall be a retired judge or an attorney with at least five (5) years
of experience in public works construction contract law and in arbitrating public
works construction disputes. In addition, the arbitrator shall have at least
twenty (20) hours of formal training in arbitration skills. In the event the parties
cannot agree upon an arbitrator, the provisions of California Public Contract
Code Section 10240.3 shall be followed in selecting an arbitrator possessing the
qualifications required herein.
.3 Hearing Days and Location. Arbitration hearings shall be held at the offices of
City and shall, except for good cause shown to and determined by the arbitrator,
be conducted on consecutive business days, without interruption or
continuance.
.4 Hearing Delays. Arbitration hearings shall not be delayed except upon good
cause shown.
.5 Recording Hearings. All hearings to receive evidence shall be recorded by a
certified stenographic reporter, with the costs thereof borne equally by City and
Contractor and allocated by the arbitrator in the final award.
.6 Limitation of Depositions. The parties may conduct discovery in accordance
with the provisions of section 10240.11 of the Public Contract Code; provided,
however, that depositions shall be limited to both of the following:
(i) Ten (10) percipient witnesses for each party and 5 expert witnesses per
party.
Upon a showing of good cause, the arbitrator may increase the number of
permitted depositions. An individual who is both percipient and expert shall, for
purposes of applying the foregoing numerical limitation only, be deemed an
expert. Expert reports shall be exchanged prior to receipt of evidence, in
accordance with the direction of the arbitrator, and expert reports (including
initial and rebuttal reports) not so submitted shall not be admissible as
evidence.
.7 Authority of the Arbitrator. The arbitrator shall have the authority to hear
dispositive motions and issue interim orders and interim or executory awards.
16 Rev. July 2012
CONSTRUCTION CONTRACT
.8 Waiver of Jury Trial. Contractor and City each voluntarily waives its right to a
jury trial with respect to any Contract Dispute that is subject to binding
arbitration in accordance with the provisions of this Paragraph 14.4.4.
Contractor shall include this provision in its contracts with its Subcontractors
who provide any portion of the Work.
14.5 Non‐Waiver.
Participation in the Contract Dispute Resolution Process shall not waive, release or compromise
any defense of City, including, without limitation, any defense based on the assertion that the
rights or Claims of Contractor that are the basis of a Contract Dispute were previously waived by
Contractor due to Contractor’s failure to comply with the Contract Documents, including, without
limitation, Contractor’s failure to comply with any time periods for providing notice of requests
for adjustments of the Contract Sum or Contract Time or for submission of Claims or supporting
documentation of Claims.
SECTION 15 DEFAULT.
15.1 Notice of Default.
In the event that City determines, in its sole discretion, that Contractor has failed or refused to
perform any of the obligations set forth in the Contract Documents, or is in breach of any
provision of the Contract Documents, City may give written notice of default to Contractor in the
manner specified for the giving of notices in the Construction Contract.
15.2 Opportunity to Cure Default.
Except for emergencies, Contractor shall cure any default in performance of its obligations under
the Contract Documents within two (2) Days (or such shorter time as City may reasonably require)
after receipt of written notice. However, if the breach cannot be reasonably cured within such
time, Contractor will commence to cure the breach within two (2) Days (or such shorter time as
City may reasonably require) and will diligently and continuously prosecute such cure to
completion within a reasonable time, which shall in no event be later than ten (10) Days after
receipt of such written notice.
SECTION 16 CITY'S RIGHTS AND REMEDIES.
16.1 Remedies Upon Default.
If Contractor fails to cure any default of this Construction Contract within the time period set forth
above in Section 15, then City may pursue any remedies available under law or equity, including,
without limitation, the following:
16.1.1 Delete Certain Services.
City may, without terminating the Construction Contract, delete certain portions of the Work,
reserving to itself all rights to Losses related thereto.
16.1.2 Perform and Withhold.
City may, without terminating the Construction Contract, engage others to perform the Work or
portion of the Work that has not been adequately performed by Contractor and withhold the cost
thereof to City from future payments to Contractor, reserving to itself all rights to Losses related
thereto.
16.1.3 Suspend The Construction Contract.
City may, without terminating the Construction Contract and reserving to itself all rights to Losses
related thereto, suspend all or any portion of this Construction Contract for as long a period of
time as City determines, in its sole discretion, appropriate, in which event City shall have no
17 Rev. July 2012
CONSTRUCTION CONTRACT
obligation to adjust the Contract Sum or Contract Time, and shall have no liability to Contractor
for damages if City directs Contractor to resume Work.
16.1.4 Terminate the Construction Contract for Default.
City shall have the right to terminate this Construction Contract, in whole or in part, upon the
failure of Contractor to promptly cure any default as required by Section 15. City’s election to
terminate the Construction Contract for default shall be communicated by giving Contractor a
written notice of termination in the manner specified for the giving of notices in the Construction
Contract. Any notice of termination given to Contractor by City shall be effective immediately,
unless otherwise provided therein.
16.1.5 Invoke the Performance Bond.
City may, with or without terminating the Construction Contract and reserving to itself all rights to
Losses related thereto, exercise its rights under the Performance Bond.
16.1.6 Additional Provisions.
All of City’s rights and remedies under this Construction Contract are cumulative, and shall be in
addition to those rights and remedies available in law or in equity. Designation in the Contract
Documents of certain breaches as material shall not waive the City’s authority to designate other
breaches as material nor limit City’s right to terminate the Construction Contract, or prevent the
City from terminating the Agreement for breaches that are not material. City’s determination of
whether there has been noncompliance with the Construction Contract so as to warrant exercise
by City of its rights and remedies for default under the Construction Contract, shall be binding on
all parties. No termination or action taken by City after such termination shall prejudice any other
rights or remedies of City provided by law or equity or by the Contract Documents upon such
termination; and City may proceed against Contractor to recover all liquidated damages and
Losses suffered by City.
16.2 Delays by Sureties.
Without limiting to any of City’s other rights or remedies, City has the right to suspend the
performance of the Work by Contractor’s sureties in the event of any of the following:
(i) The sureties’ failure to begin Work within a reasonable time in such manner as to insure
full compliance with the Construction Contract within the Contract Time;
(ii) The sureties’ abandonment of the Work;
(iii) If at any time City is of the opinion the sureties’ Work is unnecessarily or unreasonably
delaying the Work;
(iv) The sureties’ violation of any terms of the Construction Contract;
(v) The sureties’ failure to perform according to the Contract Documents; or
(vi) The sureties’ failure to follow City’s instructions for completion of the Work within the
Contract Time.
16.3 Damages to City.
16.3.1 For Contractor's Default.
City will be entitled to recovery of all Losses under law or equity in the event of
Contractor’s default under the Contract Documents.
16.3.2 Compensation for Losses.
In the event that City's Losses arise from Contractor’s default under the Contract Documents, City
shall be entitled to withhold monies otherwise payable to Contractor until Final Completion of the
Project. If City incurs Losses due to Contractor’s default, then the amount of Losses shall be
deducted from the amounts withheld. Should the amount withheld exceed the amount deducted,
the balance will be paid to Contractor or its designee upon Final Completion of the Project. If the
Losses incurred by City exceed the amount withheld, Contractor shall be liable to City for the
difference and shall promptly remit same to City.
18 Rev. July 2012
CONSTRUCTION CONTRACT
16.4 Suspension by City for Convenience.
City may, at any time and from time to time, without cause, order Contractor, in writing, to
suspend, delay, or interrupt the Work in whole or in part for such period of time, up to an
aggregate of fifty percent (50%) of the Contract Time. The order shall be specifically identified as
a Suspension Order by City. Upon receipt of a Suspension Order, Contractor shall, at City’s
expense, comply with the order and take all reasonable steps to minimize costs allocable to the
Work covered by the Suspension Order. During the Suspension or extension of the Suspension, if
any, City shall either cancel the Suspension Order or, by Change Order, delete the Work covered
by the Suspension Order. If a Suspension Order is canceled or expires, Contractor shall resume
and continue with the Work. A Change Order will be issued to cover any adjustments of the
Contract Sum or the Contract Time necessarily caused by such suspension. A Suspension Order
shall not be the exclusive method for City to stop the Work.
16.5 Termination Without Cause.
City may, at its sole discretion and without cause, terminate this Construction Contract in part or
in whole by giving thirty (30) Days written notice to Contractor. The compensation allowed under
this Paragraph 16.5 shall be the Contractor’s sole and exclusive compensation for such
termination and Contractor waives any claim for other compensation or Losses, including, but not
limited to, loss of anticipated profits, loss of revenue, lost opportunity, or other consequential,
direct, indirect or incidental damages of any kind resulting from termination without cause.
16.5.1 Compensation.
Following such termination and within forty‐five (45) Days after receipt of a billing from
Contractor seeking payment of sums authorized by this Paragraph 16.5, City shall pay the
following to Contractor as Contractor’s sole compensation for performance of the Work :
.1 For Work Performed. The amount of the Contract Sum allocable to the portion
of the Work properly performed by Contractor as of the date of termination,
less sums previously paid to Contractor.
.2 For Close‐out Costs. Reasonable costs of Contractor and its Subcontractors and
Sub‐subcontractors for:
(i) Demobilizing and
(ii) Administering the close‐out of its participation in the Project (including,
without limitation, all billing and accounting functions, not including
attorney or expert fees) for a period of no longer than thirty (30) Days
after receipt of the notice of termination.
.3 For Fabricated Items. Previously unpaid cost of any items delivered to the
Project Site which were fabricated for subsequent incorporation in the Work.
16.5.2 Subcontractors.
Contractor shall include provisions in all of its subcontracts, purchase orders and other contracts
permitting termination for convenience by Contractor on terms that are consistent with this
Construction Contract and that afford no greater rights of recovery against Contractor than are
afforded to Contractor against City under this Section.
19 Rev. July 2012
CONSTRUCTION CONTRACT
16.6 Contractor’s Duties Upon Termination.
Upon receipt of a notice of termination for default or for convenience, Contractor shall, unless the
notice directs otherwise, do the following:
(i) Immediately discontinue the Work to the extent specified in the notice;
(ii) Place no further orders or subcontracts for materials, equipment, services or facilities,
except as may be necessary for completion of such portion of the Work that is not
discontinued;
(iii) Provide to City a description, in writing no later than fifteen (15) days after receipt of the
notice of termination, of all subcontracts, purchase orders and contracts that are
outstanding, including, without limitation, the terms of the original price, any changes,
payments, balance owing, the status of the portion of the Work covered and a copy of
the subcontract, purchase order or contract and any written changes, amendments or
modifications thereto, together with such other information as City may determine
necessary in order to decide whether to accept assignment of or request Contractor to
terminate the subcontract, purchase order or contract;
(iv) Promptly assign to City those subcontracts, purchase orders or contracts, or portions
thereof, that City elects to accept by assignment and cancel, on the most favorable terms
reasonably possible, all subcontracts, purchase orders or contracts, or portions thereof,
that City does not elect to accept by assignment; and
(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.
SECTION 17 CONTRACTOR'S RIGHTS AND REMEDIES.
17.1 Contractor’s Remedies.
Contractor may terminate this Construction Contract only upon the occurrence of one of the
following:
17.1.1 For Work Stoppage.
The Work is stopped for sixty (60) consecutive Days, through no act or fault of Contractor, any
Subcontractor, or any employee or agent of Contractor or any Subcontractor, due to issuance of
an order of a court or other public authority other than City having jurisdiction or due to an act of
government, such as a declaration of a national emergency making material unavailable. This
provision shall not apply to any work stoppage resulting from the City’s issuance of a suspension
notice issued either for cause or for convenience.
17.1.2 For City's Non‐Payment.
If City does not make pay Contractor undisputed sums within ninety (90) Days after receipt of
notice from Contractor, Contractor may terminate the Construction Contract (30) days following a
second notice to City of Contractor’s intention to terminate the Construction Contract.
17.2 Damages to Contractor.
In the event of termination for cause by Contractor, City shall pay Contractor the sums provided
for in Paragraph 16.5.1 above. Contractor agrees to accept such sums as its sole and exclusive
compensation and agrees to waive any claim for other compensation or Losses, including, but not
limited to, loss of anticipated profits, loss of revenue, lost opportunity, or other consequential,
direct, indirect and incidental damages, of any kind.
SECTION 18 ACCOUNTING RECORDS.
18.1 Financial Management and City Access.
Contractor shall keep full and detailed accounts and exercise such controls as may be necessary
for proper financial management under this Construction Contract in accordance with generally
20 Rev. July 2012
CONSTRUCTION CONTRACT
accepted accounting principles and practices. City and City's accountants during normal business
hours, may inspect, audit and copy Contractor's records, books, estimates, take‐offs, cost reports,
ledgers, schedules, correspondence, instructions, drawings, receipts, subcontracts, purchase
orders, vouchers, memoranda and other data relating to this Project. Contractor shall retain these
documents for a period of three (3) years after the later of (i) final payment or (ii) final resolution
of all Contract Disputes and other disputes, or (iii) for such longer period as may be required by
law.
18.2 Compliance with City Requests.
Contractor's compliance with any request by City pursuant to this Section 18 shall be a condition
precedent to filing or maintenance of any legal action or proceeding by Contractor against City
and to Contractor's right to receive further payments under the Contract Documents. City many
enforce Contractor’s obligation to provide access to City of its business and other records referred
to in Section 18.1 for inspection or copying by issuance of a writ or a provisional or permanent
mandatory injunction by a court of competent jurisdiction based on affidavits submitted to such
court, without the necessity of oral testimony.
SECTION 19 INDEPENDENT PARTIES.
Each party is acting in its independent capacity and not as agents, employees, partners, or joint ventures’
of the other party. City, its officers or employees shall have no control over the conduct of Contractor or
its respective agents, employees, subconsultants, or subcontractors, except as herein set forth.
SECTION 20 NUISANCE.
Contractor shall not maintain, commit, nor permit the maintenance or commission of any nuisance in
connection in the performance of services under this Construction Contract.
SECTION 21 PERMITS AND LICENSES.
Except as otherwise provided in the Special Provisions and Technical Specifications, The Contractor shall
provide, procure and pay for all licenses, permits, and fees, required by the City or other government
jurisdictions or agencies necessary to carry out and complete the Work. Payment of all costs and expenses
for such licenses, permits, and fees shall be included in one or more Bid items. No other compensation
shall be paid to the Contractor for these items or for delays caused by non‐City inspectors or conditions set
forth in the licenses or permits issued by other agencies.
SECTION 22 WAIVER.
A waiver by either party of any breach of any term, covenant, or condition contained herein shall not be
deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition
contained herein, whether of the same or a different character.
SECTION 23 GOVERNING LAW.
This Construction Contract shall be construed in accordance with and governed by the laws of the State of
California.
21 Rev. July 2012
CONSTRUCTION CONTRACT
SECTION 24 COMPLETE AGREEMENT.
This Agreement represents the entire and integrated agreement between the parties and supersedes all
prior negotiations, representations, and contracts, either written or oral. This Agreement may be amended
only by a written instrument, which is signed by the parties.
SECTION 25 SURVIVAL OF CONTRACT.
The provisions of the Construction Contract which by their nature survive termination of the Construction
Contract or Final Completion, including, without limitation, all warranties, indemnities, payment
obligations, and City’s right to audit Contractor’s books and records, shall remain in full force and effect
after Final Completion or any termination of the Construction Contract.
SECTION 26 PREVAILING WAGES.
This Project is not subject to prevailing wages. The Contractor is not required to pay prevailing wages in the
performance and implementation of the Project, because the City, pursuant to its authority as a chartered
city, has adopted Resolution No. 5981 exempting the City from prevailing wages. The City invokes the
exemption from the state prevailing wage requirement for this Project and declares that the Project is
funded one hundred percent (100%) by the City of Palo Alto.
SECTION 27 NON APPROPRIATION.
This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto
Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the
event that the City does not appropriate funds for the following fiscal year for this event, or (b) at any time
within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds
for this Construction Contract are no longer available. This section shall take precedence in the event of a
conflict with any other covenant, term, condition, or provision of this Agreement.
SECTION 28 AUTHORITY.
The individuals executing this Agreement represent and warrant that they have the legal capacity and
authority to do so on behalf of their respective legal entities.
SECTION 29 ATTORNEY FEES.
Each Party shall bear its own costs, including attorney’s fees through the completion of mediation. If the
claim or dispute is not resolved through mediation and in any dispute described in Paragraph 14.2,
the prevailing party in any action brought to enforce the provision of this Agreement may recover its
reasonable costs and attorney’s fees expended in connection with that action. The prevailing party shall be
entitled to recover an amount equal to the fair market value of legal services provided by attorneys
employed by it as well as any attorney’s’ fees paid to third parties.
SECTION 30 COUNTERPARTS
This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties,
constitute a single binding agreement.
SECTION 31 SEVERABILITY.
In case a provision of this Construction Contract is held to be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions shall not be affected.
IN WITNESS WHEREOF, the parties have caused this Construction Contract to be executed the
date and year first above written.
CITY OF PALO ALTO
City M anager
Name: William J. Hendrickson
APPROVED AS TO FORM: Title: Executive Vice President
Sen ior Asst. City Attorney
22 Rev. July 2012
CONSTRUCTION CONTRACT
California AII·Purpose Acknowledgment
State of California
Cou nty of _____ "'S"'a"'nC!O"'i"'e"'g"'o ____ _
o n _----'S"'e"'p"'te"'-m=be"'r--'4!.,,-'2~O'_'1_"3'_____ before me, ____ ---:-?R"'o':-'-n ,cK",1 u"c]t",hcO;' ",N"o!"tac-rY:,-;,;;P;,u",b",,1 ic"----_______ _
Name and Title of the Officer
personally appeared ____ --'W=ill"'ia"'m"-';'J;-, ""H"'e"'nd"'r,;'ic"'k"'s"'o"'n _________________ _
Name of Signer
who proved to me on the basis of satisfactory evidence to be the person(s1 whose name(s1 isiafe subscribed
to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized
capacityfje&), and that by his/her/their signature(s1 on the instrument the person(s1, or the entity upon behalf of
which the person(s1 acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph
is true and correct.
WITNESS my hand and official seal.
(Seal)
City of Palo Alto (ID # 4099)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 9/16/2013
City of Palo Alto Page 1
Summary Title: Confirmation of Appointment of Hilary Gitelman as Director
of Planning and Community Environment
Title: Confirmation of Appointment of Hillary Gitelman as Director of
Planning and Community Environment
From: City Manager
Lead Department: City Manager
RECOMMENDATION
The City Manager recommends that the City Council approve the appointment of Hillary
Gitelman as Director of Planning and Community Environment.
BACKGROUND
Municipal Code Section 2.08.020 requires that the City Council approve the City
Manager’s appointment to certain positions, including the Director of Planning and
Community Environment.
DISCUSSION
Hillary Gitelman was selected as a result of a national search conducted by the executive
recruitment firm of Teri Black & Company. The City received 46 applications for the PCE
Director position. Six candidates were interviewed by two panels, made up of staff,
community members and peer professionals. The City Manager selected Ms. Gitelman
based on his interviews and the recommendations of the interview panels and
enthusiastically offered her the position, which she has accepted. Her starting date will
be October 28, 2013.
City of Palo Alto Page 2
Please see the attached press release which outlines Ms. Gitelman’s extensive
experience. Ms. Gitelman will be an outstanding addition to the City at a very important
time in the City.
RESOURCE IMPACT
The annual salary for the Director of Planning and Community Environment will be
$197,500. All benefits and terms are consistent with the Management & Professional
Compensation Plan approved by Council.
Attachments:
Hillary Gitelman Press Release (PDF)
City of Palo Alto – 9/10/2013 Page 1 of 2
NEWS RELEASE
Contact:
Claudia Keith
Chief Communications Officer
650/329-2607
September 10, 2013 For Immediate Release
Hillary E. Gitelman Named Palo Alto Director of Planning and Community Environment
Palo Alto, CA – City Manager James Keene announced today that he has selected Hillary E. Gitelman to
serve as the City’s next Director of Planning and Community Environment, and will bring her
appointment to the City Council on September 16 for confirmation. Gitelman currently serves as the
Director of Planning, Building and Environmental Services for Napa County. She is expected to begin in
her new position on Oct. 28 at a salary of $197,500. The selection was made following a national search
and recruitment process that included extensive input from community and business stakeholders, as
well as two interview panels with broad representation from the community.
“Hillary was our top candidate and we are fortunate to have someone with her breadth of experience
join the City in this critical leadership position as we address the very complex planning and
development issues facing us today and in the future,” said City Manager James Keene. “The role of
Director of Planning is central to the future our city. This is an especially important point in time for Palo
Alto. The Director position requires a person with the drive to make necessary changes in our plans and
policies and meet the demands of our community, and do so with diplomacy, and a commitment to
inclusiveness and open government. Hillary brings all of these qualities to her new role and will be a
tremendous asset to Palo Alto.”
For the past eight years, Gitelman has directed Napa County’s Department of Planning, Building and
Environmental Services where she leads a staff of 70 and is responsible for current and long-range
planning, engineering and conservation, parks, environmental health, building permits and code
enforcement. From 2001 to 2004, she directed the planning department of the Presidio Trust, a federal
agency established to preserve the Presidio of San Francisco for public use while making the park
financially self-sufficient. As part of this role, she was responsible for developing the award-winning
Presidio Trust Management Plan, as well as the PresidiGo shuttle system, and parking management
program, among others.
Gitelman also served as the Environmental Review Officer for the San Francisco Planning Department,
where she was responsible for the City and County’s compliance with the California Environmental
Quality Act and related laws. During her decade-long tenure with the City and County of San Francisco,
she conducted major environmental reviews for PacBell (now ATT) Park, the Mission Bay Redevelopment
Project, the Mid-Embarcadero Roadway, the Third Street Light Rail Project, and many other private and
public projects.
Previously, she held increasingly senior positions in planning and historic preservation, and is affiliated
with the San Francisco Planning and Urban Research Association; the Association of Environmental
Professionals; the American Planning Association, and the National Trust for Historic Preservation.
City of Palo Alto – 9/10/2013 Page 2 of 2
Gitelman holds a bachelor’s degree in the history of art from Yale and a master’s degree in historic
preservation from Columbia University, School of Architecture, Planning & Preservation.
“I am thrilled to have this opportunity, and look forward to working with the staff and citizens of Palo
Alto on a wide variety of planning and transportation issues,” said Gitelman.
City of Palo Alto (ID # 3959)
City Council Staff Report
Report Type: Action Items Meeting Date: 9/16/2013
City of Palo Alto Page 1
Summary Title: Preliminary Public Benefit Economic Analysis for 395
PMR/3045 Park
Title: Review of Preliminary Economic Analysis Report for a Planned
Community (PC) Rezoning to Accommodate: 1) Four-Story Office
Development at 395 Page Mill Road and; 2) Three-Story Public Safety
Building with Attached Six-Level Parking Structure Located at 3045 Park
Boulevard
From: City Manager
Lead Department: Planning and Community Environment
Recommendation
Staff recommends that the Council review and provide comment on the Public Benefit
economic analysis for a proposed Planned Community development at 395 Page Mill Road and
3045 Park Boulevard. The proposed Planned Community project would consist of an office
development at 395 Page Mill Road and a Public Safety building and parking garage at 3045
Park Boulevard as described below.
Background
The project applicant, the Jay Paul Company, is proposing to construct two (2) four-story office
buildings totaling 311,000 sq. ft at 395 Page Mill Road. The proposal would retain the existing
three-story 219,377 sq. ft. office building on the same site (AOL’s current location). A total of
1,170 parking spaces would be provided in basement garages and in an above grade parking
deck. The second part of the proposed development includes a new 44,420 sq. ft. Public Safety
Building and 579 on-site parking spaces. 388 spaces would serve the development at 395 Page
Mill Road, and 191 secured parking spaces would serve the Public Safety Building. A complete
description of the project is provided below.
The applicant is proposing that the development be approved as part of a Planned Community
(PC) zone. A Planned Community Zone may be approved if the following findings are made:
City of Palo Alto Page 2
(a) The site is so situated, and the use or uses proposed for the site are of such
characteristics that the application of general districts or combining districts will not provide
sufficient flexibility to allow the proposed development.
(b) Development of the site under the provisions of the PC planned community district will
result in public benefits not otherwise attainable by application of the regulations of general
districts or combining districts.
(c) The use or uses permitted, and the site development regulations applicable within the
district shall be consistent with the Palo Alto Comprehensive Plan, and shall be compatible with
existing and potential uses on adjoining sites or within the general vicinity.
In summary, PC zones allow for consideration by the City Council of the standard zoning
regulations to be exceeded in exchange for a public benefit. Of course, the project also must
meet many other conditions and mitigate impacts as determined by the Council. In this case,
the primary exception being proposed by the developer is an increase in overall floor area. In
other words, the developer is proposing a building that is larger than would typically be
permitted in the existing zoning district. In exchange for this increase in floor area, the
developer is proposing to construct and give the City a new Public Safety Building and
associated land. The building would include tenant improvements, except for IT cabling and
furnishings.
In the past, PC zones did not undergo a specific public benefit economic analysis. However,
earlier this year the City Manager gave direction to staff to incorporate an economic analysis as
a standard part of all Planned Community review processes. The purpose of this review is to
quantify the private gain/increased value associated with the land use changes requested under
the PC zone, in order to better understand the adequacy of the proposed public benefit. This
project is the first to be reviewed under this new policy. Several months ago the City hired
Applied Development Economics (ADE) to complete this analysis. ADE is expert in fiscal impact
and pro-forma analysis. ADE conducted fiscal analysis on behalf of the City for the Stanford
Development Agreement and for updates to the Comprehensive Plan. ADE has met with staff
on several occasions and with the developer once to verify several assumptions made within
the analysis. The analysis is attached to this report and described below.
To date, the project has been the subject of: a Prescreening Hearing by the City Council; four
meetings of the Planning and Transportation Commission (PTC) for Initiation and Scoping of the
project and EIR, and twice discussed by the Council Infrastructure Committee to discuss the
Public Safety Building component of the project. Staff reports and available minutes for these
meetings can be found on the City’s Project webpage at
http://www.cityofpaloalto.org/news/displaynews.asp?NewsID=2269&TargetID=319. The
Planning and Transportation Commission initiated the Planned Community Zoning process in
City of Palo Alto Page 3
May. This additional “check-in” point, where the Council will review public benefit analysis, is
not a typical part of the review process. Given the scope of this project, however, the Council
requested this additional step.
The preliminary (draft) traffic study, which was also tentatively scheduled to be reviewed, will
now be reviewed in early 2014. Staff was concerned about a number of assumptions made in
the traffic report, and therefore did not believe it accurately described potential impacts. If the
Council chooses to move forward with this project, the full review by the ARB, PTC and Council
will be required. Additional community meetings will be also be scheduled.
Project Description
Over the past year, this project has been the subject of extensive staff review and multiple
public hearings. After receiving direction from staff and at these hearings, the applicant revised
the development plan and public benefit proposal, as described below:
395 Page Mill Road
The components of this project include:
Construction of two four-story R&D/ Office buildings totaling 311,000 square feet of floor
area;
Retention of the existing three-story 219,377 square feet of R&D/Office (AOL) building;
1,329 on-site parking spaces provided on three levels, including a basement level and one
above-grade parking deck. A total of 388 parking spaces for the R&D/Office uses would be
provided off-site at 3045 Park Boulevard;
Setbacks of up to a 100 feet along Ash Street;
Stepping the 3rd and 4th stories back 10 feet from the stories below;
Significant setback along Olive Avenue for storm water retention and useable open space.
The applicant is proposing to provide the following public benefit(s):
3045 Park Blvd
Complete construction of an approximately 44,500 square foot Public Safety Building with
191 dedicated parking spaces. The Public Safety Building would be located on the southern
portion of the site. A 388 space parking structure in six above--grade levels providing the
parking required for 395 Page Mill Road tenants would be located on the northern portion
of the site. The two structures would be connected by two levels of underground parking.
The City would only be responsible for the cost of furniture and IT equipment/cabling.
City of Palo Alto Page 4
Discussion of Pubic Benefit Economic Analysis
The pro-forma analysis memo written by Applied Development Economics (ADE) is attached to
this report. This memo was created using a number of assumptions that are based on market
research, ADE’s knowledge of the Bay Area real estate market, meetings with City staff, and a
meeting with the Jay Paul Company. While the fluid nature of development markets makes it
difficult to predict the future with complete precision, the analysis provides a solid framework
for determining the adequacy of the proposed public benefit. The City Council is not bound by
the analysis and could request more in public benefit. But this third-party analysis provides a
beneficial perspective to inform the City’s review and ultimate decision.
In addition to outlining the assumptions, the analysis discusses the adequacy of the proposed
public benefit. The memo also includes a “sensitivity analysis” which details what public benefit
could be expected if the project were reduced in size. Overall, the memo concludes that the
current proposed public benefit is reasonable from a financial perspective and would allow the
developer to obtain a return on investment (ROI) consistent with market standards. There are,
however, a number of variables that could change, reducing the developer’s return on
investment and the proposed public benefit. For example, if interest rates were to rise (long-
term rates are currently rising) or if extensive CEQA mitigations measures were required, the
developer may not be able to obtain an adequate ROI to support the proposed public benefit.
On the other hand, should interest rates, lease rates, or other factors increase beyond the
assumptions, the public benefit level could grow. Furthermore, due to initial foundation and
overhead (sunk) costs that are less variable, reducing the project size could disproportionally
reduce the possible public benefit. These are important factors for the City and developer to
consider as review of the project moves forward.
Staff suggests that the Council and public review the attached six-page memo, particularly the
summary, conclusion and sensitivity analysis which can be found in the first two-pages. Data
and an explanation of the underlying assumptions follow these pages. Obviously, the
conclusions that can be drawn are dependent upon the assumptions.
Attachments:
Attachment A: Pro Forma Analysis for 395 Page Mill Project (PDF)
255 Ygnacio Valley Road, Suite 200 Walnut Creek, CA 94596 Tel 925.934.8712 2320 Broadway, Sacramento, CA 95818 916.454.1537
www.adeusa.com
MEMO
TO: Joe Saccio
FROM: Doug Svensson
CC: Aaron Aknin, Lalo Perez
DATE: September 3, 2013
SUBJECT: Pro Forma Analysis for 395 Page Mill Project
The pro forma analysis is based on the plans for the 395 Page Mill Rd. project submitted by the Jay
Paul Company, dated 5/22/2013. The analysis is structured to determine the amount of time and cost
needed for the developer to build the proposed project and recoup that investment as well as the
added cost of the proposed public benefit, which is the construction of the City Public Safety Building
(PSB) and related parking structures.
SUMMARY
We have assumed that the construction period for the two office buildings would be 18 months and
that it would take six months to fully lease up the properties. Given current market conditions, we
expect the developer to be able to lease up to 98 percent occupancy. The PSB would be built during
year 2 of the construction period and has been incorporated into the developer's overall construction
cost. Table 1 shows the pro forma through the construction and lease up period (Years 1-3), the first
stabilized year of full operation (Year 4), the first year with a positive cumulative cash flow (Year 18)
and at subsequent Years 20, 25 and 30. As indicated at the bottom of Year 2, under the financing
scenario we have portrayed in this analysis, the developer would need to invest $122.6 million in
equity to get the project started, including the sunk cost in the sites for the new office buildings and
the construction of the PSB. The project would require a sustained financial investment of about $88
million, which eventually is recouped in Year 18, although the net present value (NPV) of the
investment is not positive until year 28 (assuming a 5 percent discount rate). By year 30, the NPV
profit is about $15.7 million, for an Internal Rate of Return (IRR) of 6.0 percent. Calculated as a return
on the developer’s long term investment in the project of about $88 million, the NPV profit of $15.7
million equates to a 17.4 percent return on equity.
CONCLUSION
The proposed project would potentially cover the cost of the PSB and still return a profit of about 17%
on the equity investment in the project over a thirty year period. While this appears to be a healthy
return on investment, it should be considered a best case scenario, since there are a number of risk
Page 2 | Applied Development Economics
factors and unknown costs that could reduce this figure when the project is actually implemented. Of
particular concern are mitigation costs that maybe identified in the CEQA process and further
escalations in construction costs by the time the project is actually built. Increases in interest rates
would also have a big impact on the cost to build and operate the project. Interest rates have been at
very low levels but are beginning to rise. In addition, there is risk related to the market for office
leases and the long term vacancy rates in the market. This analysis assumes the project can achieve a
two percent vacancy rate, but most areas within the market currently continue to report double-digit
vacancy rates. For these kinds of reasons, developers typically require a pro forma result in excess of
20% IRR so there is a margin to cover inevitable cost increases when projects are actually developed.
SENSITIVITY ANALYSIS
In order to understand the tolerance of the project for changes in the proposed intensity of
development, we have run two scenarios with reduced project sizes to see what public benefit, if any,
could be supported. Two major cost categories are relatively fixed and affect the ablity of the project
to absorb size reduction: the cost of the land, which is now a sunk cost, and the cost of site
development, which will be complicated under any development scenario due to the superfund issues
with the property. If the project were reduced by 25 percent, the public benefit potential would need
to be reduced to about 6o percent of the level currently proposed in order to achieve the same return
on investment as the full project described above. The public benefit amount would be about $26.9
million rather than the $49.3 million currently estimated. However, if the project were reduced by half,
there would be no possibility of any public benefit contributions and still achieve the same rate of
return.
Applied Development Economics | Page 3
Table 1
Summary Pro Forma for 395 Page Mill Rd.
(Current Dollars Except NPV)
Year 1 Year 2 Year 3 Year 4 Year 18 Year 20 Year 25 Year 30
Project Costs
Land $30,447,961
Land Holding Costs $2,906,770 $400,663 $408,676 $416,850 $550,024 $572,245 $631,805 $697,564
Building Construction $137,509,307 $70,379,991
Other costs $17,830,530 $8,917,319
Const. Loan Finance $6,058,254 $3,092,595 $144,888,008
Operating Costs $5,806,355 $8,129,510 $8,292,100 $9,338,252 $9,338,252 $9,338,252 $9,338,252
Debt Service $9,343,823 $9,343,823 $9,343,823 $9,343,823 $9,343,823
Total Costs $194,752,821 $88,596,923 $153,426,194 $18,052,773 $19,232,099 $19,254,320 $19,313,880 $19,379,639
Project Revenues
Construction Loan Proceeds $100,970,894 $43,917,114
Lease Revenue $7,981,376 $21,562,658 $21,993,911 $29,020,499 $30,192,927 $33,335,431 $36,805,009
Mortgage Proceeds* $171,852,020
Annual Cash Flow ($93,781,928) ($36,698,432) $39,988,483 $3,941,138 $9,788,400 $10,938,607 $14,021,551 $17,425,371
Cumulative Cash Flow ($93,781,928) ($130,480,360) ($90,491,877) ($86,550,739) $6,140,059 $27,436,474 $91,256,261 $171,440,688
Net Present Value ($93,781,928) ($122,602,682) ($88,059,126) ($84,816,742) ($33,661,430) ($25,439,848) ($4,711,461) $15,706,158
Annual IRR -51.4% -45.9% 0.6% 2.1% 4.6% 6.0%
Page 4 | Applied Development Economics
DISCUSSION OF DATA AND METHODOLOGY
LAND
The property records for 395 Page Mill indicate that Whisman Ventures LLC in partnership with Jay
Paul Co. bought the property in May 2006. The land value is assessed currently at $38.08 million
($88.66 per sq.ft.). Based on the proposed addition of 311,000 sq.ft. of building space to the existing
224,000 sq.ft. building, we have allocated 60 percent of the land cost to the proposed project.
In addition, the site across the street at 3045 Park Blvd. would house the City Public Safety Building
and a parking garage for the 395 Page Mill site. This property was purchased in September 2011 for a
reported sale price of $7.6 million. However, it is currently assessed at $4.9 million, with $3.2 million
for land ($54.81 per sq.ft.). We have included the entire purchase price of this property as a land cost
for the proposed project. Since this site will house parking for the 395 Page Mill offices as well as the
PSB, we have included it as a cost of the office development.
Land holding costs are estimated at 1.2% annually and escalate by 2% per year. We have
accumulated holding costs from the purchase dates for each site, 2006 and 2011, respectively, into
the first year of the pro forma. Year 1 of the pro forma is assumed to be 2014.
CONSTRUCTION COSTS
We used the most recent available edition of the Commercial Square Foot Building Costs manual by
Deloitte and Saylor Publications to estimate the construction costs of the office building and parking
garage.1 The costs in this manual reflect 2009 prices and we escalated the costs to 2014 using the
Engineering News Record (ENR) building cost index for the San Francisco area. The manual uses San
Francisco as its base location for costs.
The office costs are for precast panel construction with steel frame, and include architects fees (6%)
and builder’s overhead and profit (30%). We added a $20 per sq.ft. allowance for tenant
improvements and an additional cost of $18.3 million for site grading and excavation of the basement
parking areas. The site is an EPA superfund site and will require special treatment during the
excavation and disposal process, as well as ongoing dewatering treatment. The hard construction
costs and site development for the office buildings is estimated at $594.00 per sq.ft. (including cost of
basement parking and other parking structures) for a total of $184.8 million.
SOFT COSTS
Since architects fees and builder’s profit are included in the hard construction costs, additional soft
costs include City fees and allowances for accounting, legal, and marketing functions. Table 2 presents
our estimates of City fees and permit costs. We did not attempt to estimate electrical, mechanical or
plumbing permit fees, but we did include an allowance of $250,000 for an EIR. Also, any other
mitigation costs that are identified through the CEQA process would need to be added when they are
available.
1 Horvath, Jim, Stychaz, Stan, Haigh, Ian, and Kimmel, Matt. Commercial Square Foot Building Costs,
Deloitte and Saylor Publications.2010.
Applied Development Economics | Page 5
The allocations for accounting and legal are $3.00 per sq.ft. each plus $15.00 per sq.ft. for marketing
expenses and $1.50 for other miscellaneous expenses. The total soft costs, excluding financing, for
the project are $23.8 million.
In addition we have assumed the developers would secure a construction loan for 65% of the
development cost at an interest rate of 4% plus a 1% fee. The total cost of this financing for both
office building plus all the parking would be $8.1 million.
The total development cost of the project, excluding land, would be $216.7 million. This creates a cost
basis for the office space, assuming the parking space is ancillary and not counted in the building size,
of $697.00 per sq.ft.
Table 2
Palo Alto Permit and Development Fees
Type
Estimated
Total Fee
Per
SQFT
Per
Project
Building Permit application $54 $54
Building Permit Fee $937,482 $3.01
SB 1473 Fee (Bldg. Stds. Admin.) $1,443 $0.00
Elective Plan Check $262,495 $0.84
Grading Permit $3,682 $0.01
Fire and Life Safety Plan Check $421,867 $1.36
Zoning Plan Check $281,245 $0.90
Public Works Plan Check $112,498 $0.36
SMIP Fee $30,231 $0.10
Comp Plan fee $79,176 $0.25 Outside Verification Review $865 $865
Architectural Review (Major Project) $3,712 $3,712
Environmental Impact Assessment (EIA) $1,738 $1,738
Development Impact Fees Parks $1,405,098 $4.52
Community centers $79,305 $0.26
Libraries $75,573 $0.24
Housing $5,734,840 $18.44
Traffic Impact - Stanford Research Park $3,445,880 $11.08
Total $13,478,196 $43.32 $6,369
OPERATING COSTS AND REVENUES
For an operating cost profile, we were able to obtain two years of operating cost data for a major
176,000 sq.ft. Class A office building in Walnut Creek. Table 3 shows the sq.ft. cost factors derived
from that data.
Page 6 | Applied Development Economics
Table 3
Annual Operating Costs
Cost
category Per sq.ft.
Annual for Proposed Project
Management $ 1.63 $ 505,921
Maint./Repairs $ 3.04 $ 946,694
Utilities $ 3.79 $ 1,177,448
Operations $ 1.89 $ 589,236
Insurance $ 1.12 $ 349,235
Landscape $ 0.36 $ 110,450
In addition to these costs, we included property tax at 1.1% of market value reserves at 5% of
revenue, which may be used for capital replacement costs at longer term intervals. Annual debt
service is assumed to reflect a 70% loan-to-value ratio, a 30-year term, and a 3.5% fixed interest
rate.
The pro forma uses an office lease rate of $5.40 per month. Other data range from as low as $3.32 up
to $5.50 as indicated below, but the higher rates appear to reflect more specific conditions in Palo Alto
and the Stanford Business Park. We have also assumed $80 per space in parking income.
Reported Rental Rates
o Kidder Mathews, Real Estate Market Review, Northern California, Santa Clara and
Alameda Counties, first quarter to fourth quarter of 2012. - $5.60 (Palo Alto)
o Marcus & Millichap, Office Research Market Review - $3.23 (PA/Mtn Vw/Los Altos)
o Colliers International, Silicon Valley Research and Forecast Report - $5.17 (Palo Alto)
o Cresa, Tenant’s Guide, North American Markets - $5.50 (Stanford Park)
PROJECT CAPITALIZED VALUE
Cassidy Turley has reported office sales transactions for the first quarter of 2013.2 Sales occurred in
San Francisco and in Silicon valley but not on the Peninsula. The average capitalization rate for all
sales was 5.8%, ranging from 4.8% in San Francisco to 7% in Silicon Valley. Jay Paul Company is
reported to have purchased an office building in San Francisco at an average price of $1,489 per
sq.ft., while the average transaction in San Francisco was $582 per sq.ft. and $353 per sq.ft. in Silicon
Valley. For this analysis, we have used the regional average of 5.75%, which translates to a per sq.ft.
value of $789.40 and a total value of $245.5 million.
2 Cassidy Turley, Investment Market Snapshot, Bay Area, First Quarter 2013.www.cassidyturley.com.
City of Palo Alto
COLLEAGUES MEMO
September 16, 2013 Page 1 of 3
(ID # 4087)
DATE: September 16, 2013
TO: City Council Members
FROM: Council Member Kniss, Price, Mayor Scharff, and Vice Mayor Shepherd,
SUBJECT: PALO ALTO TRAFFIC DEMAND MANAGEMENT PLAN
Recommendation: Direct staff to develop a comprehensive Transit Demand Management
(TDM) plan for the California Ave and University Ave Downtown Districts and the Stanford
Research Park with the goal of reducing solo car trips by at least 30% and return to the full
Council for further policy direction prior to initiating CEQA review, soliciting contracts, or
proposing new fees, ordinances or resolutions. If appropriate, the City Manager may wish to
consider retaining a consultant to assist in the expeditious development of a rigorous TDM plan.
The TDM plan should:
1) Create a defined TDM boundary area for the University Avenue TDM District, the California
Avenue TDM District and the Research Park TDM District;
2) Provide a funding mechanism for the TDM districts (such as, for example, assessments on
existing businesses, impact fees on new developments, or a combination of both) that will fund a
robust TDM plan with measurable outcomes based on identified goals;
3) Develop a request for proposals (RFP), based on identified goals to contract out ongoing TDM
services which would include, but are not limited to, using revenue offsets for subsidizing public
transit, parking strategies and management, carpooling incentives, biking, car sharing services,
etc. for the purpose of reducing car trips into, out of and within Palo Alto, and supplementing
existing services provided by Caltrain, SamTrans, VTA, Margarite Shuttles, AC transit and links
to surrounding transit systems such as Bart, ACE and the Capital Corridor express;
4) Outreach to Stanford's TDM director for the purpose of collaboration and integration of
services;
5) Develop tools to monitor, evaluate and measure utilization of the various TDM elements and
progress towards the overall goal of reducing solo car trips throughout the city. Enforcement
could include penalties for applicants not meeting approved TDM criteria.
6) Return to full City Council for discussion and approval.
September 16, 2013 Page 2 of 3
(ID # 4087)
Background: Parking and traffic are one of the toughest challenges facing the City at this time
and a major concern for our residents. The twin challenges of parking and traffic are being dealt
with in a multi-pronged approach. The infrastructure committee is working on using a funding
mechanism such as a Mello Roos district to create new parking garages both downtown and on
California Ave. The City Manager advises that staff is developing a framework for a
Comprehensive Residential Parking Permit system for Council to consider in the next 90 days to
deal with the substantial issues of parking intrusion into our neighborhoods. In the next 45 days,
staff will also bring to Council proposals to suspend parking exceptions so that new
developments provide an appropriate amount of parking spaces.
However, a Residential Permit Parking program, new parking garages and requiring new
developments to be parked appropriately will not alone solve the issues of parking and traffic.
The City needs a comprehensive TDM program that will reduce trips by at least 30%. Stanford
has reduced trips by 40% or more through a comprehensive TDM program, and with the right
focus and attention Palo Alto could have similar results.
Comprehensive TDM ordinances and policies cover a range of areas and use various types of
management models in the public and private sectors. Over the past 30 years, numerous cities,
counties and states have successfully developed comprehensive TDM programs specifically
designed to reduce single occupant vehicle trips. During that period, a number of TDM
specialists and consultants have prepared plans for both the public and private sectors. In
general, the key elements of these comprehensive TDM programs focus on reducing use and
reliance on single-occupant vehicles through a combination of regulation, incentives and demand
pricing. Ultimate solutions have included transportation options (walking, biking, pedestrian,
transit), promotion of the use of alternative transportation modes and parking
management/pricing.
The key elements of a TDM program should focus on reducing use and reliance on single-
occupant vehicles through the promotion of various strategies such as improving transportation
options (walking, biking, transit); promotion of alternative transportation modes (ridesharing,
vanpools, shuttles), parking management of various types and mass transportation (i.e Caltrain,
BART, etc.).
Palo Alto now finds itself experiencing significant economic development and prosperity.
Although the City has existing Municipal Code provisions that address TDM measures, they are
not comprehensive, mandatory or current in nature or consider these districts as a unit.
Furthermore, the Municipal Code includes several “by right” parking reductions for new
commercial buildings. These provisions, in combination with nearby, unrestricted (free)
residential neighborhood parking, have encouraged the use of single-occupant vehicles, while
affecting the quality of life in residential neighborhoods. Finally, the workplace itself has
changed. The tech and start-up industry have abandoned cubicles and offices in exchange for
collaborative rooms that hold more people per square foot. For these and many other reasons
traffic and parking demands are currently unmanageable, and a comprehensive, district-wide
TDM program needs to emerge in our jobs intensive areas.
September 16, 2013 Page 3 of 3
(ID # 4087)
In August, Vice Mayor Shepherd, Councilmembers Price and Kniss, and Interim Planning
Director Aaron Aknin, took a field trip to the Contra Costa Transit Center to see firsthand how
its TDM program has successfully reduced single car trips by more than 30%. The program
emerged as BART ridership expanded in the 1980s and large and small companies brought jobs
into the area. Palo Alto could have a similar experience as both Contra Costa and Stanford have
shown with the right TDM policies and focus in place.
The Contra Costa Transit Center offers on-site services for commuters employed by companies
of anywhere from 2 to 1,000 employees. The Center’s initial capital came from new commercial
development of 50 cents per square foot, grants, and now a voluntary transit district assessment.
BART fare subsidies, gas cards and special parking for carpools are examples of their TDM
strategies. Car share services are available for mid-day errands or emergency trips home, and a
contract with the local taxi company gives the commuter vouchers for final leg journeys if
needed. This is all being done in conjunction with a mandatory TDM ordinance that applies to
this entire district, thereby creating the regulation that is necessary to create the critical mass of
employers participating in the program. This approach actually created a Transportation
Management Agency (TMA) to manage these programs. Palo Alto’s review of TDM options
should consider a TMA and also explore ways to capture funding and participation related to
existing development and existing traffic, in addition to new projects.
One emerging trend in terms of demographics is that young adults are choosing not to own a car
if there are viable alternative transportation options. A significant percentage of young workers
want to live in San Francisco and commute via Caltrain to work in Palo Alto As this trend
matures, commute options into, out of and within Palo Alto also need to reflect what is called a
"shared economy" where people borrow, rent or pay for the short time use of vehicles and
equipment. A TDM program could support and encourage this new trend.
Conclusion: Alternative transportation models are not a new idea in Palo Alto. Many of our
policy documents have identified the importance of alternative modes as a means of reducing
greenhouse gas reductions. The City, employers and transit agencies have already promoted trip
reduction and alternative transportation options. Yet, these initiatives are not comprehensive in
nature, and have not been effective from a district wide standpoint. The idea of considering
downtown districts as a unit, with an experienced TDM contractor, working directly with
employers and commuters is a smart, and proven strategy to address the City’s traffic and
parking issues.
Staff Impact: The implementation of this program will take a considerable amount of staff time
in the short term during the RFP and consultant selection process. In addition, an ongoing
connection with the TDM contractor will be necessary, and take additional staff time. To some
extent, however, this will be offset in the long run. As the more comprehensive strategy takes
effect, staff will not have to tackle individual issues to the same degree. A new position in the
department, Parking Manager, will soon be hired and will provide needed support in the above
mention efforts, under the direction of the Chief Transportation Official.
City of Palo Alto (ID # 4066)
City Council Staff Report
Report Type: Action Items Meeting Date: 9/16/2013
City of Palo Alto Page 1
Summary Title: Response to SCC Grand Jury Report on Disability Retirements
Title: Approval of City of Palo Alto's Response to the 2012-2013 Santa Clara
County Civil Grand Jury Report - "The State of Public Safety Disability
Retirement Rates In The County"
From: City Manager
Lead Department: Human Resources
RECOMMENDATON
Staff recommends that Council approve the following response to the 2012-2013 Santa Clara
County Civil Grand Jury Report, “The State of Public Safety Disability Retirement Rates In The
County.” Staff further recommends that the Mayor send a letter to the Grand Jury with the
City’s Response by the deadline, September 30, 2013.
BACKGROUND
On June 21, 2013, the Civil Grand Jury of Santa Clara County issued a report that surveyed the
extent to which job-related Industrial Disability Retirements are occurring for all Public Safety
agencies in Santa Clara County. The Grand Jury also focused on the processes agencies use to
review disability retirement applications between July, 2008 and July, 2012. A copy of the
Grand Jury report is included as Attachment A.
DISCUSSION
The City’s detailed response to the finding and two recommendations are included in
Attachment B. The City does not agree with the Grand Jury’s finding that the City of Palo Alto
has the highest IDR rate in the county. Staff did not have an opportunity to reconcile the
differences because the Grand Jury had disbanded. However, the City agrees wholly with the
Grand Jury’s assessment that it is beneficial to keep public safety employees healthy and
productive, reducing their injuries and illnesses.
Attachments:
Attachment A. Santa Clara County Grand Jury Report (PDF)
City of Palo Alto Page 2
Attachment B. Grand Jury Response (DOC)
Exhibit 1. City Response to Grand Jury Request for Information (PDF)
Exhibit 2. Number of Worker's Compensation Claims (PDF)
Attachment A. Santa Clara County Grand Jury Report
Attachment A. Santa Clara County Grand Jury Report
Attachment A. Santa Clara County Grand Jury Report
Attachment A. Santa Clara County Grand Jury Report
Attachment A. Santa Clara County Grand Jury Report
Attachment A. Santa Clara County Grand Jury Report
Attachment A. Santa Clara County Grand Jury Report
Attachment A. Santa Clara County Grand Jury Report
Attachment A. Santa Clara County Grand Jury Report
Attachment A. Santa Clara County Grand Jury Report
Attachment A. Santa Clara County Grand Jury Report
Attachment A. Santa Clara County Grand Jury Report
Attachment A. Santa Clara County Grand Jury Report
Attachment A. Santa Clara County Grand Jury Report
Attachment A. Santa Clara County Grand Jury Report
Attachment A. Santa Clara County Grand Jury Report
Attachment A. Santa Clara County Grand Jury Report
Attachment A. Santa Clara County Grand Jury Report
Attachment A. Santa Clara County Grand Jury Report
Attachment A. Santa Clara County Grand Jury Report
Attachment A. Santa Clara County Grand Jury Report
Attachment A. Santa Clara County Grand Jury Report
Attachment B. City of Palo Alto Response to Grand Jury Report
1 9/11/2013
City of Palo Alto’s Response to the 2012-2013 Santa Clara County Civil grand Jury report –
“The State of Public Safety Disability Retirement rates in the County”
FINDINGS AND RECOMMEDNATIONS
Finding 3
Averaged over the past five years, the City of Palo Alto has the highest IDR rate in the county at
51%.
RESPONSE:
The City of Palo Alto disagrees with the finding. The Grand Jury reported that Palo Alto has the
highest percentage of Industrial Disability Retirements in the county at 51%. The City of Palo
Alto is not clear on how the total was calculated. Based on the data provided to the Grand Jury
on November 9, 2012 (see Exhibit 1) the City found the percentage to be lower than indicated
in the Grand Jury report. As illustrated in the table below, the City finds its percentage of
Industrial Disability Retirements (IDR) to be 34%. While the City found one IDR incorrectly
reported to the Grand Jury as an Industrial Disability Retirement for a non-sworn employee
who suffered an occupational injury, this would not account for the difference.
Total
Requirements
Service
Retirements
Industrial
Disability
Retirements
Percentage
IDR
Fire 35 25 10 28.6%
Police 27 16 11 40.1%
Total 62 41 21 33.87%
Based on the City’s figures, the City of Palo Alto’s IDR rates for safety personnel are consistent
with the average of other entities in Santa Clara County. In addition, Palo Alto’s safety IDR rates
from July, 2008 - July, 2012 represent a decrease in the industrial disability rate for Firefighters
and for Police personnel since a separate audit on this issue in April 2005, by the Palo Alto City
Auditor. That report indicated that 40.7% of Firefighter and 45.5% of Police retirements were
classified as IDR.
IDRs result from injuries on the job; therefore it is helpful to begin the analysis with workers’
compensation claim rates. During the last five years at the City, workers’ compensation rates
for Police have declined 12% and for rates for Fire have declined 20%. The graphs in Exhibit 2
indicate a gradual decline in the total number of claims. In FY 12-13, the Fire Department
experienced an all-time low of 14 total claims while Police decreased their total claims to 22.
The decrease in claims for Police and Fire substantiates that the City of Palo Alto is actively
preventing injuries and providing safe work conditions; however, the goal must be to continue
this trend of reduced claim numbers.
Attachment B. City of Palo Alto Response to Grand Jury Report
2 9/11/2013
Lower workers compensation claim rates are reflected in lower IDR rates for the City. The
City’s’ IDR rates averaged 34% over the past five years (FY 08 to FY 12 – the span of time
studied by the Grand Jury). This places Palo Alto near the average of entities reporting to the
Grand Jury - 30% IDR rate over the past five years. Thus Palo Alto, with more firefighters than
other cities in the County except San Jose, experiences an average number of IDRs compared
with cities in the County.
Recommendation 3a
The City of Palo Alto should identify what factors other than its high percentage of firefighters
influence its IDR rate.
RESPONSE:
The City of Palo Alto agrees with this recommendation 3a. Identifying the factors that may
contribute to the City’s IDR rate is critical to understanding what actions are needed to lower
the rate. And, low IDR rates reflect higher levels of health and productivity in the work force,
and low IDR rates reduce Workers’ Compensation costs that can be used for other department
programs. The City evaluated both the types of claims and the process for submitting claims to
inform this analysis.
Based on the City’s analysis of claims, the public safety officers identified in the Grand Jury
report were an average age of 49.5 years old. The nature of claims involved varied significantly
primarily involving injuries to knees, backs, neck and heart. This average age is common for
public safety officers as found in the Rand report, “Occupational Safety and Health for Public
Safety Employees,” which analyzed data from 29 different public employers in California and
found that both firefighters and police officers become more susceptible to disability as they
age. Public Safety Officers are more likely to claim permanent disability benefits after an injury
at older ages. The Palo Alto experience is the same as that described in the Rand Report. Public
Safety Officers had served an average of 22 years on the job in the Palo Alto Fire Department.
The Police Officers personnel had served an average of 13 years on the job in the Palo Alto
Police Department. Some of the personnel had years of work in other organizations prior to
their Palo Alto service.
While most public safety officers identified in this report suffered serious permanent
disabilities, others suffered injuries or illnesses that were not as severe yet incapacitated the
officer from performing work duties. Although all officers completed long term medical
treatment, their injuries still precluded them from performing their public safety officer duties
and thus were unable to continue working in their jobs on a permanent basis and therefore
sought retirement. Some agencies, such as the City of San Jose, provide an option for
permanently disabled officers to remain employed in a permanent light duty capacity. This may
involve desk work or other limited-duty functions. Palo Alto does not offer this option.
In Palo Alto, all permanent public safety positions require the ability to perform the full duties
of the job, such as fighting fires, lifting gurneys and making forcible arrests. Palo Alto offers
light duty on a temporary basis for sworn personnel who are continuing in treatment and
Attachment B. City of Palo Alto Response to Grand Jury Report
3 9/11/2013
expected to progress towards recovery. At the point that an officer is certified to have a
permanent disability that prevents performance of essential duties, the officer must elect
retirement or may retain in public employment in a non-sworn capacity. By requiring that all
sworn personnel maintain the ability to perform the full duties of their positions, Palo Alto
ensures that the Police and Fire Departments prioritize direct and essential services to the
public. At the same time, the decision not to create permanent light duty positions may
contribute to a somewhat higher IDR rate compared to agencies that retain sworn officers who
are permanently unable to perform the essential duties of a police officer or firefighter.
Because the City of Palo Alto is bound to follow the California Workers Compensation and
CalPERS retirement laws, it is limited in its ability to dispute retirements as not being entitled to
an IDR. A public safety officer applying for IDR is required to provide documentation based on
competent medical opinion that substantiates they are a Qualified Injured Worker and
“incapacitated for the performance of duty” as defined under the Public Employee’s Retirement
Law (PERL) Government Code Section 20026. Once City of Palo Alto staff receives medical
documentation from the officer’s treating physician and a second opinion from a Workers’
Compensation Board certified Qualified Medical Examiner (QME), it is reviewed to determine if
it meets the criteria based on this state law. The QME is not selected by the City of Palo Alto.
As part of the workers’ compensation claim process, the public safety officer can select a QME
from a list of state-certified doctors specializing in specific medical conditions, such as
orthopedics, cardiology, podiatry, etc. If an employee is represented by an attorney (the
majority of public safety officers in this report had decided to be represented), their attorney
can work with a City’s attorney to select an Agreed Medical Examiner. On several occasions, the
City has not certified an industrial disability retirement due to inadequate medical
documentation.
As indicated in the Grand Jury report, IDR is available for Public Safety officers, which include
firefighters, whose job-related injuries or presumptive illnesses result in their inability to
perform the usual and customary duties of their job. This outcome can be the end result of a
workers’ compensation claim in cases where the claimant does not recover sufficiently to
return to full duty. One of the first steps in the City’s workers’ compensation process is to
ensure that injuries and illness are work-related. Public Safety supervisors complete a report
identifying witnesses, and interviewing witnesses, if needed, about how the injury or illness
occurred. If there is any question that an injury did not occur on the job (for example if a claim
is filed late), the City’s workers’ compensation administrator will question an employee and
may send an investigator to interview witnesses. If there is a question whether an employee is
able to perform more activities than they are stating to a treating doctor during the life of a
workers’ compensation claim, the City’s workers’ compensation administrator may hire an
investigator to conduct surveillance. Also key is to evaluate what preventive action can be
completed to prevent reoccurrence.
Attachment B. City of Palo Alto Response to Grand Jury Report
4 9/11/2013
Recommendation 3b
RESPONSE:
The City of Palo Alto should implement a plan to lower its IDR rate.
The City agrees with this recommendation 3b. The City will continue its efforts to reduce the
rate of disability retirements through proactive measures to prevent occurrence of injuries.
Most importantly, the Public Safety Department is reviewing its injury and illness prevention
program. The City’s response to the Grand Jury described various activities such as
comprehensive training that are strong tools for improving safety that have led to a decrease in
claims over the last ten years. In support of complying with CalOSHA’s general orders for an
effective injury and illness prevention program, the Fire Department conducts monthly safety
committee meetings in which all injury claims, vehicle accidents and near-miss incidents are
reviewed in order to review and suggest worksite or equipment improvement to prevent
reoccurrence.
Examples of improvements which have resulted from this committee are the purchase of
alternate gurneys that are lighter and easier to maneuver, and, a safety video produced to train
firefighters on how to safely exit fire engines without causing knee injuries. The video was
developed after staff analyzed a trend that was occurring involving knees when firefighters
stepped on and off engines.
Public Safety also conducts a wellness program that allows officers to work out on a daily,
limited basis to maintain the physical fitness required by their jobs. In addition, Police and Fire
conduct physical exams that have been successful in proactively identifying medical conditions.
These exams include blood pressure and lipid profile tests, and treadmill fitness exercise. The
Fire Department plans to explore the implementation of the International Association of Fire
Chiefs and the International Foundation of Firefighters Fitness Initiative Program to increase the
participation in fitness training by all firefighters.
One option that the City will evaluate and consider is to establish a review committee including
a physician to review IDR applications and supporting medical reports. A second option that will
be explored with the City Attorney’s office is the criteria a City can use to deny an industrial
disability retirement and still be in compliance with state law.
Finally, legislative changes would be helpful to eliminate the incentive against returning to work
that is created under state law that provides for 50% of the disability retirement benefit tax-
free. According to the Rand report, public safety retirees are considerably more likely to have
made a workers’ compensation claim prior to retirement. This finding is based on data from
individuals making a workers’ compensation claim for a lost-time injury between 1991 and
1996 and looked at CalPERS retirement data as well. Their findings reflected that public safety
officers might be more susceptible to work limitations because of the physically demanding
nature of their work; that public safety employees claim a work-related disability at a higher
Attachment B. City of Palo Alto Response to Grand Jury Report
5 9/11/2013
rate than employees in non-safety occupations, and that this is more pronounced at older ages.
In addition, an increase in disability benefits could be an incentive for not returning to work.
Thank you for this opportunity to respond to this 2012-13 Civil Grand Jury report and develop
strategies to further decrease the City of Palo Alto Industrial Disability Retirement rates.
Exhibit 1. City Response to Grand Jury Request for Information
Exhibit 1. City Response to Grand Jury Request for Information
Exhibit 1. City Response to Grand Jury Request for Information
Exhibit 1. City Response to Grand Jury Request for Information
Exhibit 1. City Response to Grand Jury Request for Information
Exhibit 1. City Response to Grand Jury Request for Information
Exhibit 1. City Response to Grand Jury Request for Information
Exhibit 1. City Response to Grand Jury Request for Information
Exhibit 1. City Response to Grand Jury Request for Information
Exhibit 1. City Response to Grand Jury Request for Information
Exhibit 1. City Response to Grand Jury Request for Information
Exhibit 1. City Response to Grand Jury Request for Information
0
5
10
15
20
25
30
35
2007-2008 2008-2009 2009-2010 2010-2011 2011-2012
Police - Total Number of Claims
Fiscal Year
0
5
10
15
20
25
30
35
40
2007-2008 2008-2009 2009-2010 2010-2011 2011-2012
Fire - Total Number of Claims
Fiscal Year