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HomeMy WebLinkAboutStaff Report 7095 City of Palo Alto (ID # 7095) City Council Staff Report Report Type: Informational Report Meeting Date: 4/17/2017 City of Palo Alto Page 1 Summary Title: Palo Alto Seismic Risk Assessment Study Results Title: Palo Alto Seismic Risk Assessment Study Results From: City Manager Lead Department: Development Services Department RECOMMENDATION This is an Informational Report, no City Council action is required at this time. Staff recommends that the City Council review the Seismic Risk Assessment Study prepared by Rutherford + Chekene, structural engineers. The study includes input from City of Palo Alto’s Seismic Risk Management Advisory Group. Once Council is familiar with this study, staff will prepare to return for a study session and direction. EXECUTIVE SUMMARY This informational item is intended to give the City Council advance background for an upcoming study session related to a Seismic Risk Assessment Study of vulnerable building construction in Palo Alto. In 2014, following the 6.0 magnitude earthquake in August 2014 in the Napa Valley and the Office of Emergency Service’s Threats and Hazard Identification and Risk Assessment Report, the Council directed staff to identify and prioritize buildings that pose a potential seismic hazard in Palo Alto; review ‘best practices’ used by other communities for addressing retrofit of seismically vulnerable buildings; and review current and pending State legislation addressing these building types. Rutherford + Chekene was selected to perform a comprehensive assessment of the expected performance of the City’s building stock in potential earthquakes, including a community engagement effort to help identify resiliency goals and associated mitigation policies and programs. Specific details about the report can be found in this staff report and attached consultant report. (Attachments B) In this staff report, staff has summarized the outcome of the Seismic Risk Assessment and the Advisory Group’s input on revisions to consider for the City’s Building and Zoning Ordinances. Some of the study recommendations have significant policy and cost implications that will require further study and Council review. All of these recommendations are discussed in this staff report and in the detailed technical reports attached. (Attachments B and G) City of Palo Alto Page 2 Next steps following council study session on this matter may include public outreach to educate the community on vulnerable buildings. Staff, with the help of consultants, will review potential incentives for retrofits and policies to minimize displacement of existing uses and tenants. Staff would return to the Council with a recommendation to revise the current seismic mitigation ordinance based on findings and community feedback. To be effective, there will need to be a plan for staffing the program. Finally, during the study session staff will also discuss potential policy implications such as displacement of existing building uses and tenants, incentives for voluntary building retrofits, and the effects these benefits might have on construction. BACKGROUND On September 15, 2014, the City Council directed staff to work with the Policy and Services Committee to address the following: A. Identification and prioritization of buildings that pose a potential hazard in an earthquake, including soft-story buildings and other types of construction B. Review of "best practices" from other cities regarding prioritization of various seismically vulnerable buildings, including retrofit incentives and requirements C. Review of current or pending State legislation related to soft-story buildings and other structurally deficient buildings Two events precipitated the Council’s direction: (1) the 6.0 magnitude earthquake on August 24, 2014, in Napa Valley and (2) the City Council’s review of the Office of Emergency Service’s Threats and Hazard Identification and Risk Assessment report on September 15, 2014, which identified over 130 seismically vulnerable buildings. (Attachment C) <http://www.cityofpaloalto.org/civicax/filebank/documents/43866> Current Code Provisions, Building Identification and Prioritization In 1986, the City Council adopted the Seismic Hazards and Identification Program codified at PAMC Section 16.42. (Attachment A) This ordinance established a mandatory evaluation and reporting program and created incentives for property owners primarily in the Downtown area to voluntarily upgrade their structurally deficient buildings. Three categories of buildings were identified, including: 1. Category I Buildings: Buildings constructed of unreinforced masonry (except for those smaller than 1,900 square feet with six (6) or fewer occupants). These buildings are located in the Downtown Commercial area. 2. Category II Buildings: Buildings constructed prior to January 1, 1935, containing one hundred (100) or more occupants. 3. Category III Buildings: Buildings constructed prior to August 1, 1976, containing three hundred (300) or more occupants. City of Palo Alto Page 3 The categories used in 1986 were developed by a citizens’ committee, reviewed by staff and the Policy and Services Committee, and adopted by the City Council. These categories were created to record known URM buildings and other potentially structurally deficient buildings with relatively high numbers of occupants. This program identified 89 buildings and was successful in two significant ways. One hundred percent (100%) of the property owners complied with the ordinance and submitted engineering reports detailing structural deficiencies and recommendations to strengthen structures to alleviate the threat of collapse. Further, approximately seventy-four percent (74%), or sixty-six buildings, were strengthened, demolished, or proposed to be demolished. See (Attachment D) for current status of all inventoried properties. Part of this success may be attributed to incentives that allowed upfront engineering report costs be applied toward permit fees and the ability for property owners in the Downtown Commercial (CD) district to add up to 2,500 square feet of new floor area, or twenty-five percent (25%) of the existing building area, whichever is greater, to the site without having to provide additional parking. This floor area bonus could be used onsite or transferred to another owner or property in the Downtown Commercial district. Approximately twenty- one (21) property owners took advantage of this incentive. Despite its successes, twenty-three (23) buildings identified from that original inventory remain vulnerable. Further, there are other building types in the City that were not surveyed prior to adoption of the 1986 ordinance. For example, problems with soft story wood-frame construction were documented following the 1994 Northridge Earthquake, which resulted in changes to construction industry standards a few years later. In 2003, the Collaborative for Disaster Mitigation at San Jose State University completed an “Inventory of Soft-First Story Multi-Family Dwellings in Santa Clara County.” According to the report, the City of Palo Alto had 130 soft story multi-family buildings including 1,263 residential units housing 3,158 occupants. Other construction types of concern that were not surveyed in 1986 include non-ductile concrete buildings, older steel moment frame buildings, and older concrete tilt-up buildings, in addition to soft story wood-frame construction. The City’s existing ordinance requires annual reporting to the City Council on the status of the program. This reporting appears to have ended in 2004 for unknown reasons. More recently, the City Council adopted an ordinance (Attachment E - update to ORD 5356) modifying the seismic incentive so that parking must now be provided if an owner seeks to add 2,500 square feet or 25% of the total building area in the CD District. Policy and Services Recommendation and Council Authorization On December 9, 2014, the Policy and Services Committee of the Palo Alto City Council City of Palo Alto Page 4 recommended the City Council authorize a Request for Proposal (RFP) to develop information for use in updating the City’s Seismic Hazards Identification Program (Ordinance 3666). See Staff Report 5293 “Discussion of Updating the Seismic Safety Chapter of the Municipal Code for Hazardous Buildings” (Attachment D). The City Council approved the recommendation and an RFP was prepared. A consulting team led by Rutherford + Chekene was selected to: A. Develop summarize relevant state and local seismic mitigation legislation B. Obtain detailed information on Palo Alto’s existing building stock C. Develop conceptual retrofits for vulnerable building types D. Make loss estimates of expected damage to current and retrofitted building E. Work with a City advisory group to develop policy recommendations for consideration by the Council. A stakeholder Advisory Group was convened and was an essential element in discussing earthquake risks in Palo Alto’s existing building stock prepared by the consultant team and in reviewing policy alternatives. Members included people with a range of relevant expertise and interests, including interested citizens, earthquake risk and engineering experts, local developers and owners, and representatives of various community groups. City departments also participated in the Advisory Group, including Building, Planning, Fire, Office of Emergency Services, and Public Works. See Attachment F for a list of Advisory Group members. City Policy Implications Currently, the City is in the process of updating its Comprehensive Plan. In its Goal statements, this document expresses the community’s vision for its future. Further, in its policies, the Plan defines the appropriate actions to implement the vision. The Seismic Risk Assessment Study’s findings and its guiding conclusions informed by the Seismic Risk Management Advisory Group are integral to several key elements of the Comprehensive Plan: the Safety Element, the Housing Element, and the approach to, and needs for, coordinated Community Emergency Services. Policies being considered in the Comprehensive Plan Safety Element support regular review and update of the City’s seismic retrofit regulations. Although focused on multiple family and commercial structures, the seismic risk assessment identifies both the type of seismically vulnerable structures and the geographic areas in the community that will be most affected by a major earthquake. To gage the impact, the study looked at the cost of retrofitting each type of structure. It also evaluated the community impact of the aftermath of a major earthquake in terms of loss of property and effect on the City’s economy. Palo Alto is currently participating with the other cities in the County in updating the State and Federally mandated five-year update of the Santa Clara County Local Hazard Mitigation City of Palo Alto Page 5 Plan (Santa Clara LHMP) as required by the Federal Disaster Mitigation Act of 2000. This plan is required before Palo Alto can request FEMA assistance following a natural disaster. The Local Hazard Mitigation Plan focuses on community mitigations to fire, flood and earthquake events. The data in the Seismic Risk Assessment Study will be useful as a tool to inform the Santa Clara LHMP about the City’s needs in the event of a major earthquake. The Council’s subsequent direction on revising of the City’s seismic renovation requirements will be integrated into Palo Alto’s mitigations outlined in the Santa Clara LHMP plan. The Seismic Risk Assessment Study and its implementation have important implications for both City and emergency planning policy. First and foremost, the study provides valuable information for the development of the City’s long range planning policy expressed in the Comprehensive Plan in areas of community safety, housing, and coordination of community services, which also includes community education and neighborhood volunteers. It also provides information that can be used to refine the community’s vision regarding its residents’ wellbeing and improve its preparedness for a major seismic event by addressing risk to loss of life and property associated with vulnerable building types. The information can also improve the community’s ability to recover from a major seismic event including displacement of residents and businesses, loss of housing and commercial buildings and community wide economic impacts and recovery. Other policy implications involve the potential for displacement of existing uses and tenants if building owners need to remove the uses/tenants to upgrade their buildings or if they increase rents to cover the cost of engineering studies and retrofit work, and the how this displacement can be minimized. Also, potential incentives for voluntary building retrofits may need to be considered along with changes to the existing zoning incentives (Transfer of Development Rights program) that grant bonus square footage to buildings that are retrofitted downtown, and the potential impacts/benefits that might result from new incentives or modifications. SEISMIC RISK ASSESSMENT STUDY The risk assessment carried out by R+C included a series of task reports. They have been combined into one composite report as Attachment B and include surveys of state and local seismic policies and practices, an inventory of buildings in Palo Alto, a summary of vulnerable building categories, conceptual seismic retrofitting of representative vulnerable buildings, loss estimates for the current condition of the building stock and if buildings are retrofit, a review of past seismic retrofits in Palo Alto from selected City records, and a discussion of additional recommended program features for an improved seismic risk mitigation program. Table 1 summarizes the outcome of the seismic risk assessment and includes the Advisory Group discussions. The table is organized around eight vulnerable building categories or building types. Categories I, II and III encompass the identified vulnerable buildings for the City of Palo Alto Page 7 Figure 1: Category IV, Wood-frame Soft Story Building built before 1977 Earthquake Damage Figure 2: Category I, Unreinforced Masonry Building Earthquake Damage Figure 3: Category I, Unreinforced Masonry Building Earthquake Damage City of Palo Alto Page 8 Survey of State and Local Seismic Policies The risk assessment study includes two reports that address (1) a detailed review of the seismic risk management policy context within the State of California including relevant State legislation, and (2) the status of local seismic safety and mitigation programs. Development of the reports included searches of legislative data bases, search and review of published and online reports and materials, phone interviews with community leaders as well as local and State government staff, and development of insights from the consulting team based on their experiences in this arena. The two reports were discussed at Advisory Group meetings and helped inform the development of potential seismic risk management policies relevant to Palo Alto. State Level Policy Review The report on State level risk mitigation policies provides review of relevant historic and pending State legislation related to seismic risk mitigation of vulnerable buildings. High level legislative findings from the report include the following: A. Palo Alto is affected by numerous relevant California existing laws and regulations dating from the 1930s through the present. These laws regulate many aspects of Palo Alto’s built environment, including certain classes of building uses such as hospitals, public schools, and essential facilities; setting code minimums for new construction; and mandating land use planning and real estate disclosure measures for natural hazards including earthquakes. Unreinforced masonry (URM) is at present the only structural system type for which the State requires local jurisdictions to have a program. B. If it so chooses, Palo Alto has wide authority to expand or strengthen its approaches to seismic mitigation. The power to do more about earthquake vulnerabilities is primarily in the hands of the local jurisdictions that have significant discretion in the kinds of policies they can adopt. C. Palo Alto has many additional actions it can take to make sure it is complying and taking greatest possible advantage of State level regulations and opportunities. In particular, opportunities exist now to align a new seismic program with two ongoing mandated planning efforts the City is already engaged in: Palo Alto’s Comprehensive Plan update and the Santa Clara County Local Hazard Mitigation Plan update. Based on what state laws allow and in some cases recommend policy directions Palo Alto could pursue going forward include the following: A. Implement measures to increase the effectiveness of its current program, for instance by offering additional or larger incentives or devoting more resources to program visibility and implementation B. Expand the City’s current voluntary seismic mitigation programs to address additional building types, uses, or sizes City of Palo Alto Page 9 C. Add mandatory screening or evaluation measures for one or more vulnerable building types such as soft-story wood frame or concrete buildings D. Upgrade the City’s current voluntary URM program to make retrofitting mandatory E. Create a program that mandates seismic retrofits for one or more additional (non-URM) vulnerable building types F. Craft a program that combines any or all of the above measures. Local precedents for all of these types of approaches exist G. Continue the status quo current program Local Program Best Practice Assessment The local program best practices assessment report reviews current practices among local jurisdictions and agencies that require seismic retrofitting. The report summarizes what has been done legislatively and programmatically to increase awareness, assess, and motivate mitigation of seismically vulnerable buildings. Palo Alto is currently laying a solid foundation for future program development by investing in new inventory and risk information as well as community outreach and internal staff discussions. In doing so, it is joining a group of leading California coastal jurisdictions such as Berkeley, Oakland, San Francisco and Los Angeles that have recently stepped up their earthquake risk reduction efforts. San Leandro and Fremont have also had policies in place for over a decade. While there is much learning and information sharing going on, each jurisdiction has developed their own customized policy package. There is no single best model that Palo Alto can straightforwardly adopt. Existing local approaches differ widely in the following ways: A. Policy mechanisms used to achieve progress B. Scope of targeted building types or uses addressed C. Prioritization for retrofit among vulnerable structures and compliance timeframes D. Types of incentives offered to property owners E. Disclosure measures used to increase public awareness Policy Mechanisms The policy mechanisms being used by other jurisdictions range from inventory only with no subsequent requirements to mandatory retrofit completion in under five years. In between are more gradual approaches such as voluntary retrofit advocacy, incentives, provisions that make building deficiencies more visible to the public (disclosure measures), and mandatory screening and evaluation requirements. An important policy decision is whether any mandated actions are implemented on a fixed timeline or triggered at sale or at some renovation cost threshold. City of Palo Alto Page 10 Scope of targeted building types and characteristics The most commonly addressed building type is unreinforced masonry (URM) construction due to state law SB 547, passed in 1986. Over half of URM building programs in the state require mandatory retrofit, often but not always, with a time frame on the order of ten to twenty years. By 2006, seventy percent of all identified URM buildings statewide were either demolished or retrofitted. Retrofit rates on average were three times higher in jurisdictions with mandatory retrofit compared to voluntary programs. Jurisdictions used a wide variety of both financial and policy incentives to assist URM building owners. Some voluntary URM building programs coupled with incentives, including Palo Alto’s, have achieved similar rates of success to mandatory programs. More recent programs have focused on soft-story wood frame multi-family residential buildings, including ten Bay Area jurisdictions and, most recently, Los Angeles as of 2015. Soft-story wood frame building programs range in requirements from notification only to mandatory retrofit. Several jurisdictions have innovatively used intermediate mandatory screening and evaluation phases to further assess risk exposure and determine the final set of buildings that will be affected by retrofit requirements. Soft-story wood frame programs have largely been supported in the local community. Compliance timeframes in soft-story wood frame programs tend to be short, on the order of two to seven years. A comparatively small number of Southern California jurisdictions have acted to address older concrete buildings, including Los Angeles, Burbank, Santa Monica, and Long Beach. Non-ductile concrete frame and tilt-up concrete structures, in particular, are known to pose serious risks. Programs aimed at older concrete buildings range from voluntary guidelines to mandatory evaluation and full retrofit requirements. Timeframes on mandatory retrofit of older concrete buildings vary greatly, from years to decades. Information about the implementation and outcomes of these few programs is very limited. Incentives To complement program compliance requirements, jurisdictions can offer either financial or policy oriented incentives. Financial incentives in increasing order of cost and implementation difficulty include: waivers or reductions of building department fees, pass through of retrofit costs to tenants (in jurisdictions with rent control), property-assessed financing loads, subsidized or special term loans, real estate transfer tax rebates, special district or historic designation tax reductions, tax credits, grants, and general obligation bonds. Program incentives in order of increasing difficulty include exemption from future retrofit requirements, expedited reviews, exemption or relief from standards or non- conforming conditions, condominium conversion assistance, technical assistance for retrofitting, zoning incentives, transfer of development rights, and density or intensity bonus such as a floor area or floor area ratio bonus. Jurisdictions vary widely in the extent and type of incentives offered, and many offer a number of different types of incentives. City of Palo Alto Page 11 Disclosure Measures Public disclosure provides a powerful mechanism for influencing the opinions and actions of owners, renters, and buyers, particularly in programs without mandatory retrofitting requirements. Officially publicizing a city’s concerns about deficiencies of a specific building type could, for instance, change public opinion about the resale or rental value of listed properties, an owner’s eligibility for refinancing or future loan terms, or the cost of purchasing property and earthquake insurance. Jurisdictions have used a variety of techniques to motivate attention to seismic risk concerns. Disclosure measures include the following: A. Mandatory disclosure at time of sale: Sellers of property are required to disclose features that could relate to earthquake performance. B. Recorded notice on deed: Jurisdictions can record on the property title or deed, the fact that the building is subject to additional requirements related to its seismic vulnerability status. C. Public listing of affected properties: Jurisdictions that operate web sites to describe their programs can feature a full list of property addresses and the compliance status of the property. Generally, owner names are not listed. D. External signage: California law requires signage on all URM buildings. Similar signage has been required since 2007 on soft-story wood frame buildings in the City of Berkeley and non-complying soft-story wood frame buildings in San Francisco. E. Tenant notification: Owners are required to present straightforward, standardized information about the listed status of the property. F. Earthquake performance rating systems: Owners can be either encouraged or required to have their building rated on a standardized scale that classifies expected performance in an earthquake. In 2015, the City of Los Angeles launched a voluntary effort to encourage owners to rate the properties using the US Resiliency Council’s rating system and pledged to rate its own public buildings. For more information about the US Resiliency Council, see their website at <http://www.usrc.org/>. Palo Alto Options Based on the review of state and other jurisdiction policies, alternative program options for Palo Alto were identified: 1. Status Quo: In this option, the existing ordinance with its mandatory evaluation, voluntary retrofit approach remains in place without changes. Floor area ratio bonuses are (were) available and could continue to be offered. 2. Increase Number of Building Types Regulated, but Retrofit Remains Voluntary: Additional categories of structures are added to the mandatory evaluation requirements beyond those of the current ordinance. These could include any or City of Palo Alto Page 12 all of the building types discussed above, potentially also using additional location, use, or occupancy criteria. 3. Increase Number of Building Types Regulated with Additional Disclosure Measures Incorporated: This option would be similar to Option 2, but with increased use of disclosure measures such as prominently posting the building list on the City website, notifying tenants, requiring signage, and/or recording notice on the property title. 4. Increase Number of Building Types Regulated, Some Building Types Have Voluntary Retrofit and a Few Building Types Have Mandatory Retrofit, with Enforcement by a Trigger Threshold: This option builds on Option 3, but retrofitting would be required for some building types at whenever future time a building is sold or undergoes substantial renovation above a set threshold. 5. Increase Number of Building Types Regulated, Retrofits for Some Categories are Voluntary and a Few Categories are Mandatory, with Enforcement by a Fixed Timeline: This option would be similar to Option 4, but retrofitting is required according to a fixed timeline. Timelines and enforcement emphasis could vary depending on tiers or priority groupings to motivate prompt action for the most vulnerable or socially important structures. 6. Increase Number of Building Types Regulated, but More Categories are Required to Have Mandatory Retrofits: This alternative is similar to Option 5, but retrofitting would be required for additional categories on a fixed timeline. Other Program Features and Implementation Factors By updating its current ordinance, Palo Alto has a variety of opportunities to expand and better link its earthquake mitigation program efforts to other City efforts in support of community resilience goals. For instance, Palo Alto could encourage a building occupancy and resumption program like San Francisco, encourage or fund installation of strong motion instruments, or pursue special programs or requirements for cell phone towers, facades, private schools, and/or post-earthquake shelter facilities. A detailed description of several leading local program models and planning resources for these types of efforts are included in Attachment B. Building Inventory Summary of Survey Methodology One of the first steps in the Seismic Risk Assessment Study was to develop a digital inventory of buildings in Palo Alto that includes all the information necessary to build the exposure model for the loss estimate. Information sources used to develop the inventory included county tax assessor files, City GIS files, a survey done by the Palo Alto Fire Department and San Jose State University of soft-story wood frame buildings, field notes from the building department files of selected buildings when the 1986 ordinance was being developed, Google Earth and Street View visual reviews, and an extensive visual sidewalk survey. City of Palo Alto Page 13 After the sidewalk surveys and additional quality assurance refinements, the study identified a total of 2,632 buildings in the study group for Palo Alto. This included 66 buildings subject to Palo Alto’s current seismic mitigation ordinance, because 23 of the original 89 buildings subject to the ordinance have been demolished. Not all buildings were field surveyed and not all key attributes needed for loss estimation were available for all buildings. For buildings that were not surveyed and were missing information, the missing attributes were developed using statistical comparisons with buildings that were surveyed on a sector- by- sector basis. A multi-step procedure was developed to fill in other missing attributes based on the best available comparative information. As a result, while the information for buildings that were not surveyed may not be fully accurate at the individual building level, the overall data set is seen as sufficiently representative for the type of loss estimates used in the project and relative comparisons made between different building types that are discussed ahead. Replacement Cost Values for Palo Alto In addition to the information discussed above, a locally-customized replacement cost had to be established for each building. Standard 2014 RS Means Replacement Cost values included in the project loss estimation software (Hazus) used were reviewed as a starting point, but not considered representative for Palo Alto. R+C and Vanir Construction Management prepared adjustments to RS Means values to capture 2016 data and local factors unique to Palo Alto. These were reviewed by a task group of the City’s project Advisory Group that included local design professionals and developers familiar with the local cost climate. The group recommended an increase of the values in general and identified target values for selected common occupancies. Based on these recommendations, R+C updated the values and Vanir reviewed them and revised the non-targeted occupancies for estimating consistency. The resulting replacement costs are shown in Table 2, and were used in the loss calculations. It is noted that resulting costs are 1.7-2.6 times the RS Means-based Hazus default values (2014 cost data), and that costs are intended to be representative of averages across the town. City of Palo Alto Page 14 Table 2: Average $/SF replacement building cost by Hazus occupancy class. Occupancy Class RS Means 2014 Average Palo Alto Cost1 [$/SF] Market Factor for Palo Alto Escalation Factor from 2014 costs to 2016 costs Demo & Minimal Sitework (5’ around building) [$/SF] Soft Cost Premium2 Average 2016 Palo Alto Cost w/ Soft Costs [$/SF] Multiplier (Replaced with Soft Costs / RS Means) Multi Family, duplex $130.75 40% 10% $17.50 20% $263 2.01 Multi Family, triplex/quad $114.94 40% 10% $17.50 20% $233 2.03 Multi Family, 5-9 units $206.41 40% 10% $17.50 20% $402 1.95 Multi Family, 10-19 units $194.12 40% 10% $17.50 20% $380 1.96 Multi Family, 20-49 units $212.26 40% 10% $17.50 20% $413 1.95 Multi Family, 50+ units $199.90 40% 10% $17.50 20% $390 1.95 Temporary Lodging $217.83 40% 10% $17.50 20% $424 1.94 Institutional Dormitory $234.44 50% 14% $25.00 20% $511 2.18 Nursing Homes $238.07 50% 12% $25.00 20% $510 2.14 Retail Trade $121.66 80% 10% $17.50 20% $310 2.55 Wholesale Trade $118.13 60% 10% $17.50 20% $$270 2.29 Personal & Repair Services $143.47 60% 10% $17.50 20% $324 2.26 Professional/Technical/ Business Services $194.52 65% 12% $17.50 20% $452 2.33 Banks $281.88 40% 12% $25.00 20% $560 1.99 Hospitals $372.59 50% 14% $35.00 20% $807 2.16 Medical Office/Clinics $267.85 20% 10% $17.50 20% $445 1.66 Entertainment/Recreation $248.61 25% 12% $25.00 20% $448 1.80 Theaters $186.45 35% 12% $25.00 20% $368 1.98 Parking $84.59 20% 10% $17.50 20% $155 1.83 Heavy $144.71 25% 10% $17.50 20% $260 1.80 Light $118.13 25% 10% $17.50 20% $216 1.83 Food/Drugs/Chemicals $229.48 30% 12% $17.50 20% $422 1.84 Metal/Minerals Processing $229.48 30% 12% $17.50 20% $422 1.84 High Technology $229.48 40% 14% $17.50 20% $461 2.01 Construction $118.13 30% 10% $17.50 20% $224 1.89 Church $118.13 50% 12% $25.00 20% $268 2.27 Agriculture $199.08 10% 12% $17.50 20% $315 1.58 General Services $152.63 40% 10% $17.50 35% $341 2.23 Emergency Response $259.52 40% 14% $25.00 35% $593 2.28 Schools/Libraries $193.00 40% 12% $25.00 35% $442 2.29 Colleges/Universities $214.91 60% 12% $25.00 35% $554 2.58 Notes: 1. RS Means average cost includes RS Means default location factors to adjust national average to Palo Alto of 15% for residential and 11% for commercial. 2. Soft costs include architect and engineer design fees, testing and inspection, utility connection fee, permits, and an allowance for owner change order contingency. 3. Costs are intended to be representative of average in Palo Alto across the town, including downtown areas together with other areas in the city. 4. Costs were previously prepared following a 3/7/2016 discussion with the Palo Alto Seismic Risk Program Advisory Group Technical Advisory Committee. Table includes minor updates based on internal review between City of Palo Alto Page 15 Rutherford + Chekene and Vanir Construction Management to achieve improved relative ratios between different occupancy types. Number and Distribution of Vulnerable Buildings by Aggregate Size and Value Table 3 shows how the number and aggregate value of Palo Alto’s buildings is distributed by type of structure, using the FEMA Model Building Type classification system for structural system. The table is sorted by aggregate building value. Wood frame buildings make up about 60% of the number of buildings and represent 35% of the total value. About 20% of the buildings are concrete, and they represent over 40% of the total value. Of the remaining 20%, about two-thirds are masonry buildings, and one-third steel. However, the steel buildings represent about twice the value of the masonry buildings. City of Palo Alto Page 16 Table 3: Distribution of number of buildings, building area, and building value by Model Building Type. Model Building Type Number of Buildings Aggregate Square Feet (1,000) Aggregate Building Value ($M) Concrete shear wall (C2) 318 9,699 4,082 Concrete tilt-up (PC1) 242 8,054 3,368 Wood frame larger residential (W1A) 331 8,403 3,232 Wood frame commercial/industrial (W2) 307 6,209 2,369 Steel braced frame (S2) 50 3,116 1,391 Wood frame smaller residential (W1) 898 3,821 1,278 Steel moment frame (S1) 75 3,005 1,242 Reinforced masonry, wood floor (RM1) 285 2,806 1,209 Reinforced masonry, concrete floor (RM2) 30 574 211 Steel light metal frame (S3) 41 533 177 Precast concrete frame (PC2) 5 334 125 Concrete moment frame (C1) 18 325 117 Steel frame with concrete shear walls (S4) 13 162 72 Unreinforced masonry bearing wall (URM) 9 274 15 Concrete with masonry infill (C3) 8 26 8 Steel frame with masonry infill (S5) 2 6 3 Totals 2,632 47,346 18,899 The study group of buildings can be further divided into age groups separated by significant milestones in building code implementation. The following age groups were selected: pre-1927, 1927-1961, 1962-1976, 1977-1997, and 1998 to present. The milestones reflected include the first earthquake code in Palo Alto in 1926, adoption of the 1961 Uniform Building Code (UBC) and associated more stringent design requirements, code changes in the 1976 UBC following the 1971 San Fernando Earthquake, and code changes in the 1998 UBC following the 1994 Northridge Earthquake. Figure 1 shows a histogram of the year built of the buildings in the study group. City of Palo Alto Page 17 Figure 1: Distribution of year built of buildings in study group with significant changes in the building design practice. Vulnerable Building Categories One of the important tasks in the risk assessment study was to identify potentially vulnerable building categories specific to Palo Alto. Using the building inventory that was developed early in the project, R+C identified potentially vulnerable structural system types based on insights from past earthquake events, milestone improvements in seismic code requirements made in Palo Alto, rankings in prominent seismic risk assessment tools such as the 2015 edition of FEMA P-154 Rapid Visual Screening of Buildings for Potential Seismic Hazards, results from past seismic risk assessment studies in California communities, and engineering judgment. The building categories were then evaluated in analytical loss estimate studies, described ahead, which helped to narrow in on the most important categories for Palo Alto. Key building vulnerability metrics include the risk of deaths and injuries, the cost of damage, and the extent of downtime or loss of use. Buildings in the identified vulnerable building categories tend to perform poorly with respect to all three of these metrics though the relative degree of vulnerability to each factor varies. City of Palo Alto Page 18 Community Resilience Community resilience is improved if residents have homes that remain usable after an earthquake and if businesses can still operate. From a program perspective, the consultant team and advisory group believe that the greatest reduction in losses and the largest benefit to community resilience will come from seismically retrofitting building types known to be both potentially hazardous and present in significant numbers in Palo Alto. . In addition to the three categories already in Palo Alto’s seismic hazard identification ordinance (Categories I, II, and III below), five additional categories of vulnerable building types were identified. All five categories meet the criteria of being potentially hazardous and having a significant presence in Palo Alto. The eight categories and the approximate number of buildings included in each category are as follows: 1. Category I: Constructed of unreinforced masonry, except for those small than 1,900 square feet with six or few occupants (10 remaining buildings in Palo Alto) 2. Category II: Constructed prior to January 1, 1935 containing 100 or more occupants (4 remaining buildings) 3. Category III: Constructed prior to August 1, 1976 containing 300 or more occupants (9 remaining buildings) 4. Category IV: Pre-1977 soft-story wood frame (294 buildings) 5. Category V: Pre-1998 tilt-up concrete (99 buildings) 6. Category VI: Pre-1977 concrete soft-story (37 buildings) 7. Category VII: Pre-1998 steel moment frame (35 buildings) 8. Category VIII: Other pre-1977 concrete construction (170 buildings) The technical assessment confirms that the potential reduction in losses from retrofitting is significant for these categories. Conceptual Seismic Retrofitting of Representative Vulnerable Buildings Retrofit was considered for all buildings that have not already been retrofitted and were either constructed before 1961 or between 1962 and the “benchmark” year with a soft story. A “benchmark” year is when the code requirements for that building type became similar to those currently in place. Consistent with typical practice, the performance of the retrofitted buildings in an earthquake is assumed to be less than that of newly constructed buildings. City of Palo Alto Page 19 For estimating the cost of retrofit for the improved buildings, R+C developed conceptual designs for Model Building Types that represent a significant number and value of Palo Alto’s building stock, as well as a significant loss and loss reduction after retrofit. This process identified wood frame (W1, W1A, W2), steel moment frame (S1), concrete shear wall (C2), concrete tilt-up (PC1), and reinforced masonry (RM1) and unreinforced masonry (URM) as appropriate candidates. For each Model Building Type, the age, square footage and number of stories were reviewed to identify a “prototype” building. In cases where the prototype building was not representative of more than two-thirds of the total number of buildings, multiple prototypes were considered. Figure 2: Retrofit scheme for Large Multi-family Soft-Story Wood Frame Building. An example of a conceptual retrofit for the W1A prototype building is shown in Figure 2 from a 2000 brochure by R+C for the City of San Jose entitled “Practical Solutions for Improving the Seismic Performance of Buildings with Tuck-under Parking.” The retrofit elements were keyed to representative details in 2006 FEMA 547 Techniques for the Seismic City of Palo Alto Page 20 Rehabilitation of Existing Buildings, and a written description of collateral impacts was developed as well to provide sufficient detail to allow a rough order of magnitude cost estimate to be prepared. The cost estimators of Vanir Construction Management used the conceptual designs to estimate a range of probable cost to implement the retrofits. The retrofit costs for each prototype building are shown in Table 4. These costs include hard costs, which are the costs the owner pays the contractor, plus a design contingency since these are conceptual retrofits. The estimate further includes soft costs, representing architect and engineer design fees, testing and inspection costs, permit fees, and an owner change order contingency. Considered costs do not include hazardous material abatement, costs associated with performing the work while occupants are using the building, triggered accessibility upgrades, cost premiums associated with retrofit of a historic building, tenant relocation or business interruption during construction, project management, renovation, financing, repair of existing conditions, and legal fees. These costs are more variable and project and site specific, and are typically not included in loss estimates for this type of study. The retrofit costs were extrapolated to Model Building Types not represented by a prototype retrofit as shown in the fifth column of Table 4. Additional information the conceptual retrofits and their estimate cost is contained in Attachment B. City of Palo Alto Page 21 Table 4: Conceptual retrofit cost. Retrofit Prototype Model Building Type Stories Square Feet Used for Model Building Types Used for Square Feet Average Retrofit Cost ($/SF) 1 Wood frame smaller residential (W1) 2 5,320 W1 All 12 2 Wood frame larger residential (W1A) 2 9,500 W1A < 15,000 11 3 Wood frame larger residential (W1A) 3 30,000 W1A ≥ 15,000 6 4 Wood frame commercial/industrial (W2) 2 10,000 W2 All 14 5 Steel moment frame (S1) 2 43,900 S1, S2, S3 All 10 6 Concrete shear wall (C2) 1 5,000 C1, C2, S4, PC2 < 10,000 50 7 Concrete shear wall (C2) 2 17,280 C1, C2, S4, PC2 ≥ 10,000 40 8 Concrete tilt-up (PC1) 1 18,435 PC1 < 25,000 29 9 Concrete tilt-up (PC1) 2 38,400 PC1 ≥ 25,000 21 10 Reinforced masonry, wood floor (RM1) 1 2,750 RM1, RM2 < 5,000 74 11 Reinforced masonry, wood floor (RM1) 2 8,150 RM1, RM2 ≥ 5,000 46 12 Unreinforced masonry bearing wall (URM) 1 5,000 URM, S5, C3 All 110 City of Palo Alto Page 22 Loss Estimate Findings for Current Condition Hazus is a geographic information system (GIS) based, standardized, nationally applicable multi-hazard loss estimation methodology and software tool. It is used by local, state, and federal government officials for preparedness, emergency response, and mitigation planning. The Advanced Engineering Building Module from the latest Hazus version 3.1 was used to conduct the loss estimates in the study so that individual buildings could be analyzed using the specific inventory data collected for Palo Alto. Analyses were conducted for two specific earthquake scenarios developed by the United States Geological Survey (USGS): a major M7.9 San Andreas Fault event, and a strong M6.7 San Andreas Fault event. Contour plots for the short period spectral acceleration for the two M6.7 and M7.9 scenarios are shown in Figure 3. Spectral acceleration is a measure of the building response to shaking at the site. Figure 2: Predicted short period spectral acceleration in vicinity of Palo Alto (city boundary shown) for two selected San Andreas Fault scenarios. City of Palo Alto Page 23 Estimated Losses for Buildings in Their Current Condition Table 5 summarizes the total loss calculated by Hazus for the as-is condition for the two earthquake scenarios. The results show that the estimated losses to Palo Alto buildings and contents in a M6.7 scenario will be significant, on the order of $1.2 billion. Though ground shaking in the M7.9 scenario is only about 25% larger than it is in the M6.7 scenario, overall building and content losses double to $2.4 billion. Average building damage and content damage also approximately double with a M7.9 event. The difference in the number of buildings that are heavily damaged with the larger earthquake is more pronounced with a 12-fold increase from the M6.7 to the M7.9 scenarios. This is shown in the fourth column of Table 5 as the number of buildings with a damage ratio exceeding 20%. Table 5: Total losses for study group in as-is condition. Earthquake Scenario Building Value1 ($B) Content Value2 ($B) Number of Bldgs. with Damage Ratio ≥ 20%3 Estimated Building Damage4 ($B) Estimated Content Damage4 ($B) Total Building and Content Damage ($B) M7.9 18.9 17.3 224 1.7 0.7 2.4 M6.7 18.9 17.3 19 0.8 0.4 1.2 Ratio of M7.9/M6.7 2 2 2 Notes: 1. Building value is the complete replacement cost for the building, and includes the structure, architectural, mechanical, electrical, and plumbing components (e.g., ceilings and lighting). 2. Content value includes the complete replacement cost of furniture and equipment that is not integral with the structure (e.g., computers and other supplies). They are estimated as a percent of structure replacement value, dependent on occupancy. 3. Damage ratio is defined as the cost of repairing damage divided by the replacement cost of the building. 4. Estimated building and content damage cost is the cost associated with repair and replacement of the building and its content. To put the loss from building damage in context, the average annual valuation of Palo Alto construction permits was $400M between 2013 and 2016 (which represents a boom period). The total loss of $1.7B in a major M7.9 earthquake represents more than four years’ worth of construction, and the total loss of $0.8B in a strong M6.7 earthquake represents more than two years’ worth of construction. It should be noted that these losses do not include the effects of lives lost and business disruption, or the ripple effects in the local economy or real estate market. Much of this loss will not be insured. City of Palo Alto Page 24 Estimated Losses by Building Type It is important to look at multiple metrics when deciding which buildings are the most vulnerable and significant to the community as a whole. Table 6 breaks out the estimated loss and damage ratio for various model building types, and it can be seen that it depends on the metric used which building type is considered the poorest performer. Looking at the total loss alone, concrete bearing wall buildings and commercial wood frame buildings are responsible for the highest total loss. This tracks well with the earlier finding that these structural systems are the most prevalent ones. If we look at the highest average building damage ratio instead, buildings with unreinforced masonry bearing walls and unreinforced masonry infills are the most prone to damage. However, not very many of them exist in Palo Alto, and as a result they do not represent much of the aggregate loss. Additional information on the loss estimate for the existing building stock is contained in Attachment B. Table 6: Top three vulnerable building types ranked by total loss, average damage ratio, and number of severely damaged buildings. Building Type Number of Buildings Building Value ($M) M7.9 EQ Total Building + Content Losses ($M) M7.9 EQ Average Building Damage Ratio M7.9 EQ Number of Bldgs. with Damage Ratio ≥ 20% Concrete shear wall (C2) 318 4,082 477 14% 75 Concrete tilt-up (PC1) 242 3,368 365 12% 32 Wood frame commercial/industrial (W2) 307 2,369 216 9% 9 Steel frame with masonry infill (S5) 2 3 1 38% 1 Unreinforced masonry bearing wall (URM) 9 15 4 29% 9 Concrete frame with masonry infill (C3) 8 8 2 29% 6 Concrete shear wall (C2) 318 4,082 477 14% 75 Concrete tilt-up (PC1) 242 3,368 365 12% 32 Steel moment frame (S1) 75 1,242 130 18% 27 Loss Estimate Findings with Buildings Retrofitted A second Hazus AEBM run was done assuming a retrofitted building stock. For this model run, it was assumed that a building would be retrofitted if it has not already been retrofitted and was either constructed before 1961 or between 1962 and the benchmark year with a soft story. The Hazus model was rerun with the updated properties simulating retrofit. City of Palo Alto Page 25 Table 7 shows the resulting total losses and damage ratios after buildings have been retrofitted. Though total losses are still significant, comparing the results of Table 7 with Table 5 shows a reduction in total loss of 45% for the M7.9 scenario, and 33% for the M6.7 scenario. In other words, aggregate loss to the community if all considered properties were retrofit could be reduced by one third in a very plausible event and almost halved in a much larger event. Another important improvement is the reduction of the number of buildings with more than 20% damage. The M7.9 scenario shows a reduction from 224 buildings to 6 buildings. This means that the probability of building collapse and resulting injuries and fatalities has become very low. Finally, the damage and loss of the M7.9 scenario remain approximately two times the amount of loss sustained in the M6.7 scenario. This suggests that the retrofit has a similar impact for both levels of ground shaking. Table 7: Total losses after retrofitting. Earthquake Scenario Building Value ($B) Content Value ($B) Estimated Building Damage ($B) Number of Bldgs. with Damage Ratio ≥ 20% Estimated Content Damage ($B) Total Building & Content Damage ($B) M7.9 18.9 17.3 0.9 6 0.5 1.3 M6.7 18.9 17.3 0.5 0 0.3 0.8 Ratio of M7.9/M6.7 2 - 2 2 Table 8 breaks out the reduction in total loss by model building type for the M7.9 scenario, and shows the associated retrofit cost. The average reduction in loss varies by building type. URM buildings showed the highest reduction in loss after retrofit as a percentage of the loss itself. Steel braced framed buildings showed the lowest reduction in losses as a percentage of the loss itself. Wood frame and concrete buildings are responsible for the largest reduction in total loss, with wood frame construction representing over 20% of the loss reduction, and concrete buildings over 50%. It should be noted that the data in Table 8 also includes buildings that were not retrofitted. As a result, further parsing of the data is needed to better understand which buildings are responsible for the most loss, and those that can be improved more cost-effectively. Table 8: Comparison of retrofit benefits and costs by Model Building Type. Model Building Type M7.9 EQ M7.9 EQ Average Retrofit City of Palo Alto Page 26 Average Damage ($/SF) Total Damage Reduction ($1,000) Damage Reduction ($/SF) Cost ($/SF) Wood frame smaller residential (W1) 16 13,775 4 12 Wood frame larger residential (W1A) 25 61,317 7 6-11 Wood frame commercial/industrial (W2) 50 160,155 26 14 Steel moment frame (S1) 62 76,150 25 10 Steel braced frame (S2) 44 24,222 8 10 Steel light metal frame (S3) 108 38,163 72 10 Steel frame with concrete shear walls (S4) 101 11,118 69 40-50 Steel frame with masonry infill (S5) 247 695 121 110 Concrete moment frame (C1) 55 8,045 25 40-50 Concrete shear wall (C2) 70 336,574 35 40-50 Concrete frame with masonry infill (C3) 120 865 34 110 Concrete tilt-up (PC1) 68 218,491 27 21-29 Precast concrete frame (PC2) 21 0 0 21-29 Reinforced masonry, wood floor (RM1) 59 87,697 31 46-74 Reinforced masonry, concrete floor (RM2) 35 3,727 6 46-74 Unreinforced Masonry Bearing Wall (URM) 23 5,216 19 110 Totals 51 1,046,210 22 Table 9 shows those types of buildings that may be considered good candidates for a retrofit program. Although representing only about 15% of the total inventory, these buildings are responsible for over 30% of the total loss. This is reflected in the considerably higher than average loss (fourth column of Table 9). The benefit of retrofit is also considerable for this group of buildings, since they are responsible for over 50% of the reduction in loss. Additionally, the cost to retrofit them is only a fraction of the losses avoided in a major event, ranging from a third for the concrete buildings to a tenth for the steel frames. Note that these values are based on conceptual retrofits. Actual retrofit costs for individual buildings would vary substantially. The steel moment frame benefit-to-cost ratio is higher than expected by engineering judgment, caused in part by a comparatively low retrofit cost for this Model Building Type. Additional information on the loss estimate for the retrofitted building stock is contained in Attachment B. Table 9: Comparison of benefits and costs by selected Model Building Type, date and characteristics. Model Building Type Number of Buildings Total SF (1,000) M7.9 EQ Average Loss by M7.9 EQ Average Loss Average Cost to Retrofit (Average Loss Avoided) City of Palo Alto Page 27 Building ($/SF) Avoided by Retrofit ($/SF) ($/SF) / (Average Retrofit Cost) Pre-1977 wood frame soft- story (W1, W1A, W2) 294 3,690 66 46 12 4 Pre-1998 tilt-up (PC1) 99 3,078 106 71 23 3 Pre-1977 concrete soft-story (C1, C2, C3) 37 842 149 108 42 3 Pre-1998 steel moment frame (S1) 35 690 152 110 10 11 Review of Past Seismic Retrofits To gain a better understanding of the quality of the retrofits and identify relevant issues to updating Palo Alto’s seismic risk mitigation program, a sample of the submitted engineering studies and building retrofits drawings for existing buildings was reviewed. The review identified the following relevant needs for future seismic risk mitigation programs: A. Clear identification of retrofit design intent, scope, and limitations, also for voluntary retrofits B. Identification of existing structural systems C. Decision on requirements for buildings that have had partial seismic retrofits completed; and may have remaining seismic deficiencies City of Palo Alto Page 28 Additional Recommended Program Features In addition to expansion of the building categories included within the City’s seismic risk mitigation program and refinement of disclosure measures and incentive options, a number of other program features are recommended. They are described in Attachment B, and include the following: A. Use the current inventory, taking note of its limitations - The inventory developed for the effort to date involved use of digital information and field surveys. A complete field survey of all buildings in Palo Alto was outside the scope of the project. However, the inventory that has been developed is an excellent resource. The first step in any future ordinance will involve notification of building owners that they may be subject to the requirements of the ordinance. Those buildings that were field surveyed and fall within the scope of the ordinance can be notified using the existing inventory. For the remaining buildings, additional field survey is recommended. This would be a rapid visual assessment and could be conducted by City staff or outside consultants. B. Use an initial screening form phase - Typically, as part of the notification process, a screening form of about one page in length is sent, and the owner is required to have a design professional, such as a structural engineer or architect, complete the form. This cost for to confirm whether or not the building actually is subject to the City’s ordinance should be relatively nominal. C. Clearly specify seismic evaluation and retrofit scope - For all buildings subject to regulation, the seismic evaluation (and retrofit) methodology for each building category will need to be defined. Industry consensus standards exist and cover the vulnerable building categories identified for Palo Alto. These include the 2015 International Existing Building Code (IEBC) and 2014 ASCE 41-13 Seismic Evaluation and Retrofit of Existing Buildings. Both are currently being updated by groups of engineers and building officials. For soft-story wood frame buildings, there is also the 2012 FEMA P-807 Seismic Evaluation and Retrofit of Multi-Unit Wood-Frame Buildings with Weak First Stories. For steel moment frame buildings, there is also the 2000 FEMA 351 Recommended Seismic Evaluation and Upgrade Criteria for Existing Welded Moment Resisting Steel Structures. The following table provides recommended evaluation and retrofit standards. D. Provide detailed evaluation report submittal requirements - Minimum submittal requirements for evaluation reports will need to be defined. The above evaluation and retrofit standards provide some guidance but a short clear set of requirements will be beneficial. E. Specify how past partial retrofits will be handled: In the past, some buildings have had partial seismic retrofits where only selected portions of the seismic force-resisting system have been upgraded; Some seismic deficiencies may still exist in these structures. If mandatory retrofit requirements are implemented that provide for comprehensive retrofitting of the full seismic load path, there may be buildings with previous partial retrofits that do not fully comply and need remaining deficiencies to City of Palo Alto Page 29 be addressed. The seismic evaluation reports will help identify these cases. F. Update both new and existing building permit submittal requirements: Review of City records found that basic information such as the building structural system, date of construction, and retrofit standard used (where applicable) are not readily available. It is recommended that submittals for permit for both new buildings and existing building renovations require this information. This will allow the city to have a much better understanding of its total building stock and its expected performance in an earthquake. G. Write a new ordinance or set of ordinances to update the program: After the Council has provided direction and the above issues have been addressed, an updated ordinance will need to be written. H. Carefully address program management and interdepartmental coordination needs: To successfully manage Palo Alto’s updated Seismic Risk Mitigation Program, an effective management plan is needed so that progress is monitored by the City and community intent is achieved. I. Delineate department and key staff responsibilities: For Palo Alto’s updated Seismic Risk Mitigation Program, City staff will be responsible for several categories of activities. These will include the basic activities such as managing the notification and inventory process, reviewing evaluation reports and plan checking retrofit construction documents, and field inspections of retrofit work. Less obvious activities will include evaluating requested exceptions to the program or alternative means of compliance; managing feedback from design professionals, owners, and the public; tying pre-earthquake retrofitting to post-earthquake safety evaluations records; and managing post-earthquake safety evaluation, repair, and recovery plans. Depending on the scale of the updated program, it is possible that additional staff members, consultants, and/or an appropriately experienced structural engineer may be needed to provide advice on technical and program management issues, particularly as the program moves to final definition and to initial implementation. Later, as is done in some communities, it may be desirable to create volunteer review boards of local structural engineers who review questions on the evaluation and retrofit criteria and provide the City with technical opinions that staff can use. City of Palo Alto Page 30 Table 10: Recommended Evaluation and Retrofit Standards. Category Description Evaluation and Retrofit Standards I Unreinforced masonry IEBC Appendix Chapter A1 II Built before 1/1/35 with 100 or more occupants ASCE 41 III Built before 8/1/76 with 300 or more occupants ASCE 41 IV Pre-1977 soft-story wood frame IEBC Appendix Chapter A4, ASCE 41, or FEMA P-807 V Pre-1998 tilt-up IEBC Appendix Chapter A2 and ASCE 41 VI Pre-1977 soft-story concrete ASCE 41 VII Pre-1998 steel moment frame ASCE 41, or FEMA 351 VIII Other pre-1977 concrete ASCE 41 ADVISORY GROUP INPUT Summary Report of the Advisory Group The purpose of convening an Advisory Group composed of members with local expertise and construction experience was not to create a consensus document or ratify particular recommendations by majority vote. Instead, the goal was to educate, solicit, and explore the range of issues and opinions among interested parties who participated. A summary report, reviewed by all the members of the Group, was prepared to document their input in to the study (Attachment G). The Advisory Group was a first step in community engagement regarding seismic hazard reduction in Palo Alto. It was intended that the information in the Advisory Group’s summary memo would be provided to the City Council as they consider potential revisions to the City of Palo Alto’s seismic risk management program and seismic hazard identification ordinance. Preferred Policy Directions In summary, discussions with the Advisory Group revealed little to no support for maintaining the status quo. Strong support did exist for retrofitting buildings already in the program, particularly URM buildings, and for addressing more building types, particularly soft-story wood frame buildings and older concrete tilt-ups. For buildings addressed in the current ordinance, the group generally thought a mandatory retrofit requirement would be feasible and fair. Three decades later, market forces alone have clearly not been enough to motivate upgrade of these remaining structures. Because the barriers to retrofit work for these properties are not known, case-by-case management by City staff may be necessary. There was hesitance, however, about extending or increasing incentives for owners that had not voluntarily taken advantage of the FAR bonus available in the past. More detailed conversations took place about other building category priorities and City of Palo Alto Page 31 policy features focused on extending the vulnerable building types they addressed and the requirements for retrofit compliance. These program alternatives are incorporated into Options 3, 4, and 5 (see the “Survey of State and Local Seismic Policies” section). The Advisory Group was briefed on structural types generally known to be vulnerable that are common or significant to Palo Alto and estimated to have reasonable loss reduction to retrofit cost ratios. The Group’s goal was to focus on a subset of categories that seemed to have high potential to benefit the owner, occupants, and the broader community. Some participants showed greater concern about residential properties, and debated whether commercial and residential properties should be treated the same or differently. The Advisory Group showed high interest in addressing multi-family residential earthquake risks, in particular by starting a soft-story wood frame program as many other California cities have done. One soft-story wood frame program approach discussed was to have two phases: 1) owners following notification would be given several years to do a voluntary retrofit, along with more generous incentives; and 2) later a mandatory timeline would kick in and incentives would be phased out. The group noted that exemptions such as parking requirements, permission to add other unit(s), or the ability to transfer development rights for additional square footage would likely be attractive and useful incentives for the multi-family soft story building type. Other vulnerable building categories of concern were also reviewed, including pre-1977 tilt-up concrete structures. There are a modest number of these buildings in Palo Alto, but Advisory Group members noted that their uses are changing. Many buildings previously used as warehouses are now being repurposed for office space. The higher occupancies increase the public safety stakes of any seismic deficiencies. Currently, there is no mandate in the regulations to address earthquake vulnerabilities while other upgrades and build out are being done to these structures. A substantial renovation trigger mandate might make sense, but the percent of the value of the structure used as a trigger might need to be lowered in order to get compliance. Such properties with more than one story should perhaps receive higher priority for retrofit. Potential Issues for Future Study and Consideration For some issues, based in part on Advisory Group discussions, additional information may be beneficial to help develop a strategy and to better understand potential impacts on key stakeholders and community concerns. Some of these issues are primarily economic and were outside the scope of the current study. The City Council may wish to direct staff and/or outside consultants to investigate some of these items in more detail as the seismic risk management program effort proceeds. These issues include the following: A. Occupants and tenants a. How much would a typical retrofit add to the monthly rent of a multifamily City of Palo Alto Page 32 soft-story wood frame apartment tenant? b. Would some tenants be unable to afford a rent increase and seek housing elsewhere in Palo Alto or move outside the city (and if so, how many might be displaced)? c. If soft-story wood frame apartments in Palo Alto are retrofitted in time before the next major earthquake, how much less displacement of residents would occur as a result of the earthquake? d. What categories of buildings are most important to address in order to help maintain the commercial viability and vitality of the City’s core business districts and tax base? B. Property owners, developers, and business owners a. What are the characteristics of property owners that would be affected? b. How might small businesses be affected compared to larger ones? c. How many property owners are in need of lower cost capital or other substantial financial assistance to fund retrofitting? C. Impacts of Seismic Restoration on Retention of Historic Structures in the City a. How can we ensure that the review of initial seismic evaluations identify those structures that are listed in the City’s Historic Inventory or potentially significant and flag them for attention during subsequent review? b. How can we develop a clear process for reviewing proposed seismic retrofits to historic structures that is coordinated among responsible city departments and is consistent with current regulations and Community policies? c. How can we ensure that property owners take advantage of Seek out retrofit alternatives that are consistent with the Historic Building Code, historic characteristics of the structure, and provide the required most risk reduction? D. City departmental resources and budgets a. What would be the loss in revenue to the Building Department if fee waivers were offered? b. What would be the staffing and budgetary needs over time to administer an expanded program that addresses additional building types? c. What kinds of interdepartmental cooperation and staff resources in other departments are necessary to ensure effective implementation and coordination with other city planning and public safety efforts? d. What would be the costs to provide and administer any incentives offered to property owners? E. Overall community economic health a. What kind of benefits could accrue to Palo Alto in terms of maintaining community function and ability to recover if various building categories are retrofitted in time before the next major earthquake? F. Other related issues City of Palo Alto Page 33 a. It was brought up in the Advisory Group that the Building Department needs flexibility and authority to take steps to get tough seismic mitigation projects done. One idea was to grant the Building Official the ability to classify certain projects (with well-specified criteria) as warranting a kind of “seismic safety” or “earthquake resilience” fast tracking, with city departments agreeing to coordinate on a specified accelerated project review timeframe. b. Although outside the formal scope of this planning effort, several Advisory Group members commented that it would be desirable for the City to do some kind of assessment of any earthquake mitigation needs in public buildings and facilities serving the City. c. Advisory group members recommended the community be informed of Palo Alto’s overall potential seismic risk by providing a summary of potential impacts on the City’s website, including the expected performance of vulnerable buildings. d. The group also had a high degree of support for recommending that the City initiate and nest future earthquake mitigation programs within a broader disaster or community resilience initiative, as cities such as Los Angeles, Berkeley, and San Francisco have done. This could be incorporated into the update of the City’s Comprehensive Plan Safety Element. There was insufficient time in the project’s six advisory group meetings to consider potential initiatives to assess risks for cell phone towers, water supply, facades, private schools, post-earthquake shelter facilities, and/or other assets important to community recovery. TIMELINE The timeline for updating the current seismic mitigation regulation is dependent on Council’s review of the Seismic Risk Assessment Study and directions to staff. RESOURCE IMPACT Implementation of the report recommendations would result in additional costs to private property owners and prior to any decision to proceed, staff is proposing additional public outreach at a cost of about $50,000. Technical requirements and design guidelines to support a new ordinance would require additional consultant services at an estimated cost of $50,000. If desired, an analysis of the fiscal impact on residents and business could be prepared for an additional $50,000. Any incentives offered to building owners could also have a cost to the City, which would not be known until those incentives are further defined. ENVIRONMENTAL REVIEW The preparation of the Seismic Risk Assessment Study is exempt from environmental review under the California Environmental Quality Act (CEQA) Guidelines Section 15306 (Information collection leading to an action which a public agency has not yet approved, adopted, or funded). City of Palo Alto Page 34 TABLE OF CONTENTS FOR ATTACHMENTS A. Palo Alto Municipal Code, Chapter 16.42: Seismic Hazards Identification Program B. Seismic Risk Assessment Study. The study includes the following items. a. Legislative Review Report b. Local Program Best Practices Assessment c. Building Inventory for Loss Estimate d. Conceptual Seismic Retrofits and Cost Estimate e. Loss Estimate of Existing Building Stock f. Loss Estimate of Retrofitted Building Stock g. Review of Past Retrofits h. Additional Recommended Program Features C. Threat and Hazard Identification and Risk Assessment (August 2014) D. Policy and Services Committee Staff Report 5293, Discussion of Updating the Seismic Safety Chapter of the Municipal Code for Hazardous Buildings (December 9, 2014) E. Palo Alto Municipal Code, Chapter 18.18: Downtown Commercial (CD) District F. Seismic Risk Management Program Advisory Group Members G. Seismic Risk Management Program Advisory Group Summary Report on Process, Discussions, and Outcomes (November 21, 2016) H. Advisory Group Meeting Minutes, Presentations and Handouts (contained at the Seismic Risk Management Advisory Group website at <http://www.cityofpaloalto.org/gov/depts/ds/srmag.asp> Attachments:  Attachments  Attachment_A_-_PAMC_16.42_Seismic_Hazards_ID_Prgm[1]  Attachment_B_-_Palo_Alto_Seismic_Risk_Assessment_Study_-_Final_Report_- _2016_12_21[1]  Attachment_C_-_Palo_Alto_Threats_Hazards_Risk_Assessment_(August_2014.1)[1]  Attachment_D_-_Policy_and_Services_Staff_Report_5293[1]  Attachment_E_-_PAMC_18.18_CD_District[1]  Attachment_F_- _Seismic_Risk_Management_Program_Advisory_Committee_Members_01.15.16[1]  Attachment_G_- _Palo_Alto_Seismic_Risk_Mgt_Prog_AG_Summary_Rev_2016_11_21[1]  Attachment_H_-_SRMP_Advisory_Group_Agenda-Minutes-Presentations-Handouts[1] 20331.txt Attachments A - H have been removed for this reviewing process. Page 1 Final Report Seismic Risk Assessment Study Palo Alto, California 21 December 2016 #2015-087S Rutherford + Chekene 375 Beale Street, Suite 310 San Francisco, CA 94105 Palo Alto Seismic Risk Assessment Study December 21, 2016 Final Report Page i TABLE OF CONTENTS PALO ALTO SEISMIC RISK ASSSESSMENT STUDY Section / Subsection I. INTRODUCTION ............................................................................................................................................. 1 II. LEGISLATIVE REVIEW REPORT ....................................................................................................................... 5 1. Introduction ..................................................................................................................................... 7 2. Current California Seismic-Related Building Codes, Legislation, and Key Institutions .................... 7 3. Legislative Leadership and Recent Development .......................................................................... 18 4. Conclusions .................................................................................................................................... 20 5. References Cited ............................................................................................................................ 24 III. LOCAL PROGRAM BEST PRACTICES ASSESSMENT ...................................................................................... 25 1. Introduction ................................................................................................................................... 28 2. Analysis of Policy Features and Outcomes of local Seismic Risk Mitigation Programs ................. 30 3. Implications and Potential Policy Directions for Palo Alto ............................................................ 67 4. References and Resources ............................................................................................................. 77 IV. BUILDING INVENTORY FOR LOSS ESTIMATE ............................................................................................... 79 V. VULNERABLE BUILDING CATEGORIES ......................................................................................................... 85 VI. CONCEPTUAL SEISMIC RETROFITTING OF REPRESENTATIVE VULNERABLE BUILDINGS ............................. 87 VII. LOSS ESTIMATING FINDINGS FOR EXISTING BUILDING STOCK ................................................................... 91 VIII. LOSS ESTIMATING FINDINGS WITH BUILDINGS RETROFITTED ................................................................... 97 IX. REVIEW OF PAST SEISMIC RETROFITS ....................................................................................................... 101 X. ADDITIONAL RECOMMENDED PROGRAM FEATURES .............................................................................. 103 XI. QUESTIONS TO GUIDE COUNCIL DELIBERATIONS AND POTENTIAL ISSUES FOR FUTURE STUDY ............ 107 1. Questions to help guide council deliberations ............................................................................ 107 2. Potential issues for future study and consideration .................................................................... 108 Palo Alto Seismic Risk Assessment Study December 21, 2016 Final Report Page ii APPENDICES: Appendix A - Table of Historic California Earthquake Risk Reduction Legislation. Appendix B - Table of Contemporary California Earthquake Risk Reduction Legislation. Appendix C - Table Describing Incentives Used in Local Earthquake Risk Reduction Programs. Appendix D - Options for Moving to a Comprehensive, Resilience Approach Appendix E – Retrofit Concepts Designs for 12 Prototype Buildings Appendix F – Retrofit Cost Estimates for 12 Prototype Buildings Palo Alto Seismic Risk Assessment Study December 21, 2016 Final Report Page 1 CHAPTER I. INTRODUCTION In 1986, the City of Palo Alto was one of the first cities in California to establish a comprehensive seismic mitigation program. It covers unreinforced masonry buildings, buildings built before 1935 with over 100 occupants, and buildings built before August 1, 1976 with over 300 occupants. After 30 years, 75% of the 89 buildings included in the program have been demolished or retrofitted. The 2014 South Napa Earthquake spurred the City to reevaluate its program. They engaged a team led by Rutherford + Chekene (R+C) to perform a comprehensive assessment of the expected performance of the City’s building stock in potential earthquakes, and started a community engagement effort to help identify resiliency goals and associated mitigation policies and programs. The R+C project team includes Sharyl Rabinovici, a public policy and community engagement specialist; Hope Seligson (initially with MMI Engineering and now Seligson Consulting) for loss estimating; and Vanir Construction Management for cost estimation of building replacement cost and retrofitting. The technical assessment covered over 2,500 buildings (single family and two-family residences were excluded) with a wide array of potentially vulnerable structural systems. The findings show that the estimated losses to Palo Alto buildings and contents in a M7.9 scenario event will be significant, on the order of $2.4 billion. Furthermore, this figure does not include business disruption, or ripple effects in the local economy or real estate market, nor does it include the economic value of loss of life. Among the categories of highest concern are pre-1977 “soft-story” wood frame, pre-1978 tilt-up concrete, pre-1977 cast-in-place concrete construction, and pre-1998 steel moment frames. The technical assessment revealed that the potential reduction in losses from retrofitting these buildings is over $1 billion in a M7.9 scenario event. R+C’s scope included a series of tasks and associated task reports and presentations. These included the following:  A survey of state and local seismic policies and best practices;  Development of a building inventory for Palo Alto using digital information and field surveys;  Assignment of costs to buildings and contents in the inventory; Palo Alto Seismic Risk Assessment Study December 21, 2016 Final Report Page 2  Description of vulnerable building categories, including five additional categories not covered under the current ordinance;  Conceptual seismic retrofitting of representative vulnerable buildings;  Loss estimate findings in a major seismic event for the current condition and after retrofitting;  Review of past seismic retrofits; and  Discussion of additional recommended program features. These task reports and presentation information have been compiled to form this Seismic Risk Assessment Study. Each chapter in the study addresses one or more of the project task efforts. Appendices provide additional details for selected tasks. A Seismic Risk Management Advisory Group made up of community and industry stakeholders and City staff was appointed and was also an essential component of the overall project. The Advisory Group insured that local building experience and community priorities were considered as the study moved forward. The group met six times with City staff and the R+C team over a period of nine months. The Advisory Group was introduced to the findings regarding the community’s earthquake vulnerability, impacts on vulnerable building types, as well as the ‘best practices’ used by other communities to promote community wide welfare and to encourage seismic retrofit of various vulnerable buildings types. The Advisory Group then discussed the assessment findings and formulated potential directions for City of Palo Alto leaders to consider going forward in updating the City’s seismic mitigation programs. At the end of the Advisory Group process, a summary memo, reviewed by all members of the Group, was prepared to document their input to the study. The November 21, 2016 memo is entitled “Seismic Risk Management Program Advisory Group Summary Report on Process, Discussions, and Outcomes.” The following table summarizes the outcome of the seismic risk assessment and includes the Advisory Group discussions. The table is organized around eight vulnerable building categories or building types. Categories I, II and III encompass the identified vulnerable buildings for the 1986 ordinance and are primarily located in the downtown commercial district. Categories IV through VIII include additional buildings at risk, as identified in the Seismic Risk Assessment Study. These buildings are located throughout the city. There was little to no support for maintaining the status quo within the Advisory Group. As shown in the following table, the Advisory Group favored requiring property-owner prepared seismic evaluation reports for all categories, except for Category VIII (other older nonductile concrete buildings). They also favored mandatory retrofit for the remaining Category I unreinforced masonry buildings identified Palo Alto Seismic Risk Assessment Study December 21, 2016 Final Report Page 3 in the 1986 ordinance that have not been seismically retrofitted or demolished. For the Category II and III buildings in the current ordinance, retrofit should be required when a certain event or “trigger” occurs such as when a substantial renovation occurs or the property is put up for sale. Among the new vulnerable building types, the greatest concern was expressed for soft-story wood frame buildings and older concrete tilt-up buildings. The Advisory Group thought that retrofit of these structures should be either mandatory or triggered by substantial renovation or sale. The Advisory Group was concerned about delay in the retrofit of these structures given the number of the vulnerable buildings, the number of people who could be affected should the buildings be significantly damaged, and the considerable cost to the community if the structures in these categories were lost because of an earthquake. The Advisory Group considered a timeline of 2-4 years for the mandatory evaluation report and 4-8 years to complete mandatory retrofit construction. The Advisory Group supported increasing disclosure measures on building status through website listing and tenant notification. They also suggested that the most beneficial financial and policy incentives to encourage compliance with the new requirements would be fee waivers, expedited permitting, and property-assessed financing tools. Following the preparation of the Advisory Group summary, R+C assisted City staff in preparing a staff memo for an upcoming City Council meeting. It includes more detailed recommendations to the Council on proposed revisions to the City’s seismic hazard mitigation ordinance and recommends that the Council provide direction to City staff on revising and expanding the City’s building code and related ordinances. Palo Alto Seismic Risk Assessment Study December 21, 2016 Final Report Page 4 Summary of Recommended Policy Directions from the Seismic Risk Management Program Advisory Group Category Approx. Number Building Type Date of Construction Occupants Evaluation Report Voluntary, Triggered, or Mandatory Retrofit1 Deadlines for Evaluation Report and Retrofit Construction (years)2 Disclosure Potential Incentives Current Program (Potential Revision in Italics) I 10 Un- reinforced masonry NA Over 6 (and over 1,900 sf) Required Mandatory Report: Expired Construction: 2-4 Website listing and tenant notification Fee waiver, expedited permitting, FAR bonus/ transfer of development rights (TDR) II 4 Any Before 1/1/35 Over 100 Required Voluntary or Triggered Report: Expired Construction • Voluntary: Not required • Triggered: At sale or renovation III 9 Any Before 8/1/76 Over 300 Required Voluntary or Triggered Expanded Program IV 294 Soft-story wood frame Before 1977 Any Required Triggered or Mandatory Report: 2-4 Construction • Triggered: At sale or renovation • Mandatory: 4-6 Same as above Fee waiver, expedited permitting, TDR, parking exemptions, permission to add units V 99 Tilt-up Before 1998 Any Required Triggered or Mandatory Report: 2-4 Construction • Triggered: At sale or renovation • Mandatory: 4-6 Same as above Same as Categories I, II and III VI 37 Soft-story concrete Before 1977 Any Required Voluntary, Triggered or Mandatory Report: 2-4 Construction • Voluntary: Not required • Triggered: At sale or renovation • Mandatory: 6-8 Same as above Same as Categories I, II and III VII 35 Steel moment frame Before 1998 Any Required Voluntary, Triggered or Mandatory VIII TBD Other older nonductile concrete Before 1977 Any Not rec. at this time Not recommended at this time Report: NA Construction: NA NA NA 1Voluntary: Retrofit is voluntary. Triggered: Retrofit is triggered when the building is sold or undergoes substantial renovation. Mandatory: Retrofit is required per a fixed timeline. 2Deadlines provide a potential range. Timelines would vary depending on tiers or priority groupings of different subcategories. Palo Alto Seismic Risk Assessment Study December 21, 2016 Final Report Page 5 CHAPTER II. LEGISLATIVE REVIEW REPORT Executive Summary This chapter summarizes the seismic risk management policy context within the state of California to support Palo Alto’s current effort to update its program. The report was prepared per Task 2 of the Consulting Agreement between Rutherford + Chekene and the City of Palo Alto, dated August 17, 2015. The scope of Task 2 is to:  Review existing and pending State legislation related to soft-story buildings and other seismically vulnerable buildings and provide a brief summary.  Provide a concise review of relevant and pending state legislation, with a summary that can be presented at community and staff meetings or in reports to Council. The process of creating this legislative review included searches of legislative data bases, search and review of published and online reports and materials, several phone interviews with leaders in the engineering profession as well as local and state government staff, and development of insights from the consulting team based on their experiences in this arena. High level findings include the following:  Palo Alto is affected by numerous relevant California existing laws and regulations dating from the 1930s through the present. These laws regulate many aspects of Palo Alto’s built environment, including certain classes of building uses such as hospitals, public schools, and essential facilities; setting code minimums for new construction; and mandating land use planning and real estate disclosure measures for natural hazards including earthquakes. Unreinforced masonry (URM) is at present the only structural system type for which the state requires local jurisdictions to have a program.  If it so chooses, Palo Alto has wide authority to expand or strengthen its approaches to seismic mitigation. The power to do more about earthquake vulnerabilities is primarily in the hands of the local jurisdictions that have significant discretion in the kinds of policies they can adopt. Palo Alto Seismic Risk Assessment Study December 21, 2016 Final Report Page 6  Palo Alto has many additional actions it can take to make sure it is complying and taking greatest possible advantage of state level regulations and opportunities. In particular, opportunities exist now to align a new seismic program with two ongoing mandated planning efforts the City is already engaged in: Palo Alto’s General Plan and its Local Hazard Mitigation Plan. Based on what state laws allow and in some cases recommend, many broad policy directions exist for Palo Alto going forward in terms of updating its seismic mitigation program. For example, Palo Alto could choose to: (1) implement measures to increase the effectiveness of its current program, for instance by offering additional or larger incentives or devoting more resources to program visibility and implementation; (2) expand the City’s current voluntary seismic mitigation programs to address additional building types or uses; (3) add mandatory screening or evaluation measures for one or more vulnerable building types such as soft-story buildings or older concrete structures; (4) upgrade the City’s current voluntary URM program to make retrofitting mandatory; (5) create a program that mandates seismic retrofits for one or more additional (non-URM) vulnerable building types; (6) craft a program that combines any or all of the above measures. Local precedents for all these types of approaches exist and are described and discussed in a separate Task 3 report; or, (7) continue the status quo current program. Although formally outside the scope of the current effort, Palo Alto also has additional opportunities for strengthening and expanding its earthquake-related efforts in terms of land use planning, public education and awareness, and small residential structures, such as: (8) develop partnerships with the private and non-profit sectors to promote insurance take up and business continuity planning; and, (9) devote more resources to increasing awareness among its citizens about low cost or free ways to become more aware and prepared for disasters more broadly. Ultimately, the recommended policy directions and action steps for Palo Alto will be informed by related efforts in this project to analyze the most current vulnerability information available, and later determined through an inclusive decisionmaking process going forward. Palo Alto Seismic Risk Assessment Study December 21, 2016 Final Report Page 7 1. INTRODUCTION This report surveys the public policy landscape in the state of California related to earthquake mitigation and describes each policy or program’s relevance for Palo Alto and similar jurisdictions. The scope is intentionally broad so that it can serve as a primer or look-up resource for persons with varied levels of background knowledge about the topic. Section 2 organizes information about the reviewed policies, programs, and institutions based on the type of policy or program. These range from building codes and mitigation mandates to educational efforts and tax-based loan financing strategies. Section 3 briefly provides information about current State level policy leadership and the small amount of earthquake-related recent and proposed legislation. Section 4 presents options for Palo Alto through a summary of the review’s findings. Appendices A and B to this report provide detailed tables of current and pending or recent legislative proposals, respectively. The process of creating this Legislative Review included searches of the California’s LegInfo database,1 search and review of published and online reports and materials, several phone interviews with state and engineering profession leaders, and development of insights from the consulting team based on their experiences in this arena. This review covered over 50 related individual existing laws or passed referenda, in addition to the state’s Existing and Historic Building Code provisions. 2. CURRENT CALIFORNIA SEISMIC-RELATED BUILDING CODES, LEGISLATION, AND KEY INSTITUTIONS This section presents legislation and programs in narrative format to address interrelationships among these laws and to present broader implications for Palo Alto. Relevant laws and programs related to Palo Alto’s obligations and opportunities regarding earthquake mitigation are categorized by type and how each works. Specific laws referenced are shown in bold. The accompanying table in Appendix A lists the identified relevant current state legislation organized by year established. State laws related to seismic safety can be categorized as relating to building codes, targeting of existing building types or uses, land use planning, real estate practice requirements, and financial policies such as the tax code, insurance, and incentives. 1 http://www.leginfo.ca.gov (Accessed January 13, 2016). Palo Alto Seismic Risk Assessment Study December 21, 2016 Final Report Page 8 Building Codes New construction in Palo Alto is governed by the California Building Code (CBC) that is updated every three years. Updates are adopted by the City Council. The International Building Code (IBC) is the underlying model code on which the provisions of the CBC are based. Legally, every local jurisdiction in California is required to adopt the state building code and to enforce that code. Above and beyond the minimums of the CBC, each jurisdiction has flexibility if justified by local climatic, geological (including seismic), and topographical conditions. Several jurisdictions have done that as part of their seismic mitigation programs, as detailed later and in Chapter III. Standards for rehabilitation, renovation, repairs, retrofits, or additions to existing structures exist in Chapter 34 of the CBC. The International Existing Building Code (IEBC) provides additional specific methodologies that jurisdictions may decide to adopt in whole or in reference to particular sections. The City of Palo Alto has its own Historic Building Inventory of hundreds of buildings as well as several Historic Districts and both state and federally designated historic properties. Therefore, the State Historical Building Code2 is also relevant, as administered by the Division of the State Architect (DSA) under the Department of General Services. Officially designated historic structures are subject to different rules for rehabilitation which are generally more flexible and permissive than those in Chapter 34 of the CBC. Local jurisdictions can specify enhancements for seismic reasons as long as the justifications and nature of such changes are fully public and documented on record with the State Historical Building Safety Board.3 A detailed list of key provisions is given on the DSA website4. Targeted Building Types Unreinforced Masonry (URM) Inventories of specific building types have formed the backbone of California seismic policy towards existing buildings since at least the 1930s, but it was the 1986 Unreinforced Masonry (URM) Law that firmly established the precedent of using inventories to promote retrofits of existing seismically vulnerable buildings. Through this policy, in Section 8875 of the California Government Code, the State Legislature required all 366 local governments in Seismic Zone 4 (the highest hazard level) to inventory their URM buildings, establish some kind of loss- 2 Health and Safety Code, Division 13, Part 2.7, §18950-18961. 3 “Each local agency may make changes or modifications in the requirements contained in the California Historical Building Code, as described in Section 18944.7, as it determines are reasonably necessary because of local climatic, geological, seismic, and topographical conditions. The local agency shall make an express finding that the modifications or changes are needed, and the finding shall be available as a public record. A copy of the finding and change or modification shall be filed with the State Historical Building Safety Board. No modification or change shall become effective or operative for any purpose until the finding and modification or change has been filed with the board.” [Health and Safety Code §18959.f.] 4 http://www.dgs.ca.gov/dsa/AboutUs/shbsb/shbsb_health_safety.aspx (Accessed January 23, 2016). Palo Alto Seismic Risk Assessment Study December 21, 2016 Final Report Page 9 reduction or remediation program within four years, and report progress to the California Seismic Safety Commission (CSSC). Each county or municipality was allowed to design its own program. In general, three main types of local programs were utilized: 1) mandatory retrofit, 2) voluntary retrofit, and 3) notice to owners that the structure is a URM building. When retrofits were encouraged or required, the local government set the standards to be met. Palo Alto already had an inventory and program in place for URMs at the time the law was passed, and thus it was mainly subject to the reporting requirements. Mandatory signage was later required and is another controversial aspect of the State’s approach to URM buildings. Section 8875.8 of the Government Code increased enforcement efforts on the requirement for warning placards to be posted at the entrances to un-retrofitted URM buildings. In 2006, URM building owners had posted 758 signs (see Figure 1 for required text); almost all jurisdictions report the signage had no noticeable effects (CSSC, Status of the Unreinforced Masonry Building Law, 2006). Figure 1: URM sign example text. Reviews of the URM Law by the CSSC have shown it to be a success over the long term. In 2006 (the last comprehensive state survey available), compliance with the policy was 93%, and over 70% of identified URM buildings have been either retrofitted or demolished (CSSC, Status of the Unreinforced Masonry Building Law, 2006). More than half (52%) of affected jurisdictions adopted a mandatory program, which has proven by far to be the most effective type. Eighty- seven percent of identified properties have been retrofitted or demolished in jurisdictions with mandatory programs, compared to thirteen to 25 percent in jurisdictions with other program types. Palo Alto Seismic Risk Assessment Study December 21, 2016 Final Report Page 10 Some of the URM law’s influences are subtler. The state URM law is credited with creating greater awareness among community leaders and increasing practical experience and capacity to address seismic policy implementation in local jurisdictions. It set the precedent of preserving “local choice” in how to address the problems of seismically-vulnerable existing buildings. This law also brought some public attention to the issue, through exposure to warning signs at building entrances. In jurisdictions with highly effective programs, the URM law likely set the stage for greater willingness to adopt stronger, more proactive approaches for other building types. Targeted Building Uses Hospitals Palo Alto is host to at least two major hospitals, the Palo Alto Veteran’s Administration Hospital and the Lucile Packard Children’s Hospital, as well as a number of urgent care clinics and other health care facilities, for instance related to Stanford Hospital. State-mandated seismic minimums and upgrade requirements for hospitals were put in place in 1973 through SB 1953 and periodically amended since. The Office of Statewide Health Planning & Development (OSHPD) develops guidelines, administers the program, and oversees compliance. Extraordinary resources have been spent to upgrade and develop new hospitals in response to SB1953, resulting in major improvements to both seismic safety and in patient care (OSHPD, 2005). However, progress has been slower than hoped, in part because of the costs of achieving the high levels of performance that the law demands but also because of program complexity and organizational difficulties in managing upgrade programs. A comprehensive study of SB 1953 implementation showed that even organizational leaders highly motivated to reduce risk in the context of strict mandates were not always able to achieve timely progress (Alesch, 2012). Public Schools Following the 1933 Long Beach quake that rendered over 230 Southern California schools unsafe, the Field Act was passed to require higher seismic design minimums in new public school construction. The 1939 Garrison Act required school districts to retrofit or replace pre- Field Act schools. However, many schools did not comply until the mid-1970s.The Division of the State Architect (DSA) oversees this program, and since 2002 has done tracking via the “AB Palo Alto Seismic Risk Assessment Study December 21, 2016 Final Report Page 11 300 List.” 5 Further detail about Field Act implementation statewide can be found in formal state reports (See, e.g., CSSC, 2009). The status of approximately six Palo Alto area schools that have buildings on the “AB 300 List,” could be relevant to future policy development efforts depending on the extent to which the city relies on schools in its emergency response plans. Functioning schools are also known to play a large role in resumption of local business activity as part of recovery. Essential Services Buildings State law recognizes that buildings that house mission-critical jurisdictional services and administrative functions should be safe and functional after a major local event. Palo Alto is required by the California Essential Services Building Seismic Safety Act of 1986 to follow enhanced regulations during the design, rehabilitation, and construction of essential service facilities, defined as fire stations, police, California Highway Patrol, or sheriff offices, or any buildings used in part or whole to conduct emergency communications and operations. As with hospitals, the DSA develops and maintains the design and construction requirements and tracks compliance for this law. Land Use, Zoning, and Real Estate Disclosure Requirements General Plan Requirements According to the State Planning and Zoning Law, Palo Alto and other California jurisdictions have been required since 1971 to address earthquake vulnerabilities in their General Plans, currently in the Safety Element.6 The Governor’s Office of Planning and Research (OPR) provides General Plan Guidelines for what jurisdictions must do in creating and implementing their plans, mostly recently in 2011.7 Typical earthquake-related provisions focus on avoiding development in hazardous areas (for instance near known faults) and adoption of zoning and use requirements that can reduce hazards (such as creation of retention and recharge basins to lessen the impacts of storms). Palo Alto’s last General Plan was adopted over ten years ago. Since 2008, staff have been reviewing and updating different elements in turn. An analysis should be undertaken of any relevant earthquake hazard-related aspects in it, and care should be taken to align and integrate future mitigation program efforts with the City’s updated General Plan, which is 5 http://www.documents.dgs.ca.gov/dsa/ab300/AB_300_List.pdf (Accessed January 23, 2016). List described as up to date as of Thursday, September 10, 2015. 6 Government Code §65300-65303.4. 7 https://www.opr.ca.gov/docs/complete_pzd_2011.pdf (Accessed, March 6, 2016). Palo Alto Seismic Risk Assessment Study December 21, 2016 Final Report Page 12 currently in development. As of 2016, Palo Alto is working on a comprehensive update to be in effect through 2020 to 2030. More detail is available on a city website designed specifically as part of a highly engaged community involvement process.8 Zoning Palo Alto is on the list of California cities that contain some areas designated by the state as an “Earthquake Fault Zone” (Hart, 2010). The California Geological Survey (CGS) under the California Department of Conservation (DOC) oversees implementation of the Alquist-Priolo Earthquake Fault Zoning Act of 1972, a particularly important legacy policy in understanding California earthquake risk management policy. The CGS regularly conducts and updates studies that identify active faults. Buildings within an “Earthquake Fault Zone” face additional planning, use, and disclosure obligations. Additionally, the 1990 Hazards Mapping Act gave DOC responsibility for mapping areas prone to liquefaction, earthquake-induced landslides, and amplified ground shaking. Within these mapped Zones of Required Investigation, geotechnical investigations to identify hazards and formulate mitigation measures are required before permitting most development. Small Residential Real Estate Mandates and Disclosures All sellers of real property in Palo Alto are required to disclose certain facts about the building location and its condition related to earthquake hazards. These requirements began with the Natural Hazards Disclosure Act of 1990, which has detailed provisions for what sellers of real property are obligated to do and what kinds of information they must provide prior to point of sale. Requirements are more extensive when the property being sold lies within one or more of the state-mapped hazard areas, including landslides, liquefaction, and Earthquake Fault Zones.”9 Since 1993, all sellers of residential properties of four units or less must under Government Code Section 8897.1-8897.5: o Inform the buyer about known home weaknesses related to earthquake risk; o Properly strap the water heater; o If the home was built before 1960, deliver a copy to the buyer of the Homeowner’s Guide to Earthquake Safety10 brochure produced by the CSSC (The real estate agent is holds responsibility for this requirement being met); 8 http://www.paloaltocompplan.org/ (Accessed January 23, 2016). 9 http://www.conservation.ca.gov/cgs/rghm/ap/Pages/disclose.aspx (Accessed January 20, 2016). 10 Available at: http://www.seismic.ca.gov/pub/CSSC_2005_HOGreduced.pdf (Accessed February 1, 2016). Palo Alto Seismic Risk Assessment Study December 21, 2016 Final Report Page 13 o Deliver to buyers a Natural Hazards Disclosure Form telling buyers whether the home is in an Earthquake Fault Zone or in a Seismic Hazard Zone; and, o Complete and deliver to buyers a Residential Earthquake Hazards Report. A similar document called the Commercial Property Owners Guide to Earthquake Safety11 makes recommendations for commercial property buyers and sellers at the time of sale. The only requirement is that sellers must deliver a copy of the booklet to a buyer, “as soon as practicable before the transfer,” (Government Code, Section 8893.2) if the property was built before 1975 and has precast (tilt-up) concrete or reinforced masonry walls and wood-frame floors or roofs. Palo Alto currently features links to both the aforementioned guides on its Building Department website. Legal Obligations to Tenants California case law in Green v. Superior Court (1974, 10 Cal.3d 616) established that a rental unit must be “fit to live in,” or “habitable.” In legal terms, “habitable” means that the rental unit is appropriate for occupation by human beings and that it substantially complies with state and local building and health codes that materially affect tenants’ health and safety (CA Civil Code §1941, 1941.1). At time of writing, no common law precedents could be identified regarding thresholds related to seismic risk that would be actionable for tenants to reasonably claim breach of a landlord’s implied warranty of habitability. California law is broad by stating that “other conditions may make a rented property not habitable” (CA Civil Code §1941, 1941.1). For example, a rented property may not be habitable if it does not substantially comply with building and housing code standards that materially affect tenants' health and safety (CDCA, 2012). This could be a lead or mold hazard, sanitation issues, or an endangering nuisance, but also potentially if the building is substandard because of a structural hazard. In seeking to develop any new programs, Palo Alto should consider conducting a legal analysis of this important but untested aspect of seismic mitigation policy. Some housing and tenant rights groups have asserted that soft-story and other generally accepted seismic vulnerabilities may constitute a deficiency that a landlord has an obligation to repair, regardless of whether the local jurisdiction has required such work. Citizen complaints of this nature surfaced in Berkeley for instance in 2008 to 2010 (personal communication, 2010 with Jay Kelekian, City of Berkeley Rent Stabilization Board President). 11 Available at: http://www.seismic.ca.gov/pub/CSSC_2006-02_COG.pdf (Accessed February 1, 2016). Palo Alto Seismic Risk Assessment Study December 21, 2016 Final Report Page 14 Special Earthquake-Related State-Level Entities and Programs Following are a few more important state-level entities and resources of which Palo Alto can take advantage. California Seismic Safety Commission (CSSC) The California Seismic Safety Commission (CSSC), established in 1975, advises the Governor, Legislature, and state and local governments on aspects of earthquake vulnerability and policy. Its staff offer technical assistance to cities in developing and carrying out seismic related programs. The CSSC is responsible for maintaining a five-year California Earthquake Loss Reduction Plan to establish strategy and coordination for state and local government actions to mitigate earthquake hazards. The most recent statewide Loss Reduction Plan was published in 2013 (CSSC, 2013). It contains detailed lists of policy issues and recommendations that, while comprehensive, prioritized, and sensible, have had limited traction owing to lack of elected official leadership and budget. Other duties include tracking progress on the state URM law and deriving policy lessons from earthquake events. Several CSSC publications are among the best resources for evaluating local mitigation programs. California Earthquake Authority (CEA) The California Earthquake Authority (CEA) is a privately-funded, publically managed non-profit entity that provides private insurance policies to homeowners and renters. Eligibility includes homes of four units or less through participating insurers. The earthquake insurance take-up rate statewide is around ten percent. As of January 2016, CEA-affiliated underwriters can now offer a premium discount up to 20% for mitigation investments made. The number of small residential buildings in Palo Alto whose owners carry earthquake insurance is not known, but those that do or that purchase it from hereon could be eligible for this discount. Palo Alto could potentially work to make sure this benefit is better advertised and utilized by building owners. Additionally, a substantial portion of CEA’s annual premium intake is legislatively required to be spent on efforts to achieve mitigation in one-to-four unit homes throughout the state. These funds have been invested in research as well as an important new mitigation grant program for small residential houses called Earthquake Brace and Bolt, which is further described in the Financial Incentives section on the California Residential Mitigation Program. Currently, enrollment for cities is closed but expansion is planned in the future. Governor’s Office of Emergency Services Formerly known as the California Emergency Management Agency, the Governor’s Office of Emergency Services (Cal-OES) coordinates statewide emergency preparedness and response activities. Palo Alto might have untapped opportunities to train City employees at CAL-OES’s Palo Alto Seismic Risk Assessment Study December 21, 2016 Final Report Page 15 Specialized Training Institute.12 For instance, they have an “Essential Emergency Services Concepts – Earthquakes.” Financial Provisions, Tax Code, and Other Incentive Policies The potential difficulty of affording retrofit work is universally recognized as a barrier for public and private owners alike. A variety of reports have attempted to catalog incentive, financing and in-kind assistance options that are relevant to city earthquake and resilience programs (See e.g., ABAG, 1992; ATC, 2010; ABAG, 2014; MMC, 2015). This section highlights a few key pieces of enabling state legislation and federal tax programs that jurisdictions such as Palo Alto could utilize. Specific examples of how different jurisdictions have used specific financing and incentive programs are analyzed in the Task 3 Report. General Obligation, Special District, and Mello-Roos District Bonds Palo Alto is allowed to take on general obligation bond debt to help pay for retrofit or construction of new public buildings and to generate funds for providing loans to private owners for seismic work if doing so constitutes a compelling public purpose (Government Code §43600-43638; Government Code §29900-29930). Advocates have also speculated that communities might be able to use the Mello-Roos Community Facilities Act of 1982 (Government Code §53311-53317.5). This act allows localities in California to create special Capital Facilities Districts that can sell bonds to generate funds for infrastructure and community facilities and then levy additional property taxes on the real property owners in that district. Such taxes are not subject to Proposition 13 restrictions on property tax increases. Covered services may include streets, water, sewage and drainage, electricity, infrastructure, schools, parks and police protection in old or newly developing areas. The tax paid is used to make the payments of principal and interest on the bonds. Historic Property Tax Reductions Palo Alto has many historic structures and may be able to take advantage of the Mills Act of 1972,13 which gives local governments the authority to enter into contracts with owners who restore and maintain historic properties. In exchange, the property owners could get significant property tax savings. Although cumbersome, St. Helena, California is one example of a city that used this tool to help owners of unreinforced masonry buildings to seismically retrofit (ABAG, unpublished soft-story report, 2015). 12 See: http://www.caloes.ca.gov/cal-oes-divisions/california-specialized-training-institute (Accessed February 1, 2016). 13 California Government Code, Article 12, §50280-50290, California Revenue and Taxation Code, article 1.9, §439-439.4. Further information available at: http://www.ohp.parks.ca.gov/?page_id=21412 (Accessed February 1, 2016). Palo Alto Seismic Risk Assessment Study December 21, 2016 Final Report Page 16 Limits on Increases on Property Tax for Seismic Retrofit Costs Existing state tax law (California Revenue and Taxation Code §74.5) provides that the cost of an earthquake retrofit should not increase the property assessment used to determine the amount of property taxes. The extent to which building owners take advantage of this benefit is unknown and might be low because of requirements to submit specific information to their County Assessor’s Office prior to conducting retrofit work. Many Assessors’ Offices do not have forms for this purpose and their staff is not trained to process this benefit. At this time, it is not known how Santa Clara County manages this issue. Palo Alto could potentially work to make sure this benefit is better advertised and truly available to building owners. Property Assessed Clean Energy (PACE) Financing New financing programs are starting to exist that could help owners in Palo Alto who might have difficulty securing financing on their own for a seismic retrofit. Based on the Property Assessed Clean Energy (PACE) model first pioneered for solar improvements, owners can apply for 100 percent financing for seismic retrofit work at competitive fixed rates over the useful life of the improvements, to be repaid over up to 20 years with an assessment added to the property’s tax bill. The levy stays with the building upon sale and costs can be shared with tenants. Both Berkeley and San Francisco are participating in the open access AllianceNRG Program14 that offer residential property owners this financing solution primarily for sustainability upgrades and seismic strengthening projects for soft-story construction are also eligible. The AllianceNRG program is offered through California’s Statewide Community Development Authority (CSCDA) and partnerships with additional communities are now being offered state-wide since 2015. After the concept was launched in Berkeley in 2008, PACE programs stalled in 2010 the country's two biggest home lenders, Fannie Mae and Freddie Mac, decided not to underwrite mortgages for PACE customers because it added too much risk in the event of a default because the PACE loan took precedence over the mortgage. Anecdotally, jurisdictions have had some difficulties implementing this type of program for energy improvements.15 Challenges include setting up this complex financing instrument which has heavy involvement of third parties, barriers to owners that want to refinance, and barriers to the transfer of a PACE-financed properties to a new owner. 14 https://www.alliancenrg.com/retail/ (Accessed January 20, 2016). 15 See e.g., http://www.voiceofsandiego.org/topics/science-environment/some-homeowners-looking-to-move-must-deal- with-a-change-of-pace/ (Accessed February 2, 2016. Palo Alto Seismic Risk Assessment Study December 21, 2016 Final Report Page 17 California Residential Mitigation Program (CRMP) Palo Alto and other cities can benefit if the citizens can stay in their homes and “shelter in place” following a major local quake. One new important effort on this front is the California Residential Mitigation Program (CRMP). It was formed in August 2011 to carry out mitigation programs to assist California homeowners who wish to seismically retrofit their houses. CRMP’s goal is to provide grants and other types of assistance and incentives for these mitigation efforts. The California Residential Mitigation Program is a joint-exercise-of-powers entity (JPA) formed by two core members: the California Earthquake Authority (a public instrumentality of the State of California known as CEA) and the Governor’s Office of Emergency Services (Cal- OES). CRMP is a legally separate entity from its members. The first of these programs, Earthquake Brace + Bolt: Funds to Strengthen Your Foundation (EBB)16 was launched as a pilot project in September 2013 in selected zip codes only. EBB offers a cash grant up of to $3,000 for qualifying bolts or sill anchoring installment. Homeowners must register and be accepted into the program, with a cap on the number of participants. The current registration window was open from January 20 to February 20, 2016. Participation is determined by lottery if more applications are received than funds are available. At present, no Palo Alto zip codes are in the program. The selection of the specific neighborhoods and zip codes was based upon analysis of U.S. Census data identifying areas of high seismicity and having a concentration of owner-occupied homes built in 1979 or earlier. According to personal communications with CEA mitigation program representatives, Palo Alto zip codes are not likely to be prioritized highly owing to the modest number of very old single family homes. Federally Mandated Municipal Obligations and Opportunities Even though the focus of this review is California, two particularly relevant federal programs for Palo Alto are described below. As with the state, no centralized governmental authority exists at the federal level to regulate issues of seismic safety. Instead, authorities and strategies are widely distributed among agencies at the local, state, and federal levels. For instance, the Department of Housing and Urban Development operates several initiatives related to safer homes and resilient communities,17 and the General Services Administration must confront seismic risk concerns as it manages most federal facilities. The federal role is concentrated in FEMA and principally focused on emergency response and recovery, although mitigation is also addressed. 16 https://www.earthquakebracebolt.com/ (Accessed January 23, 2016) 17 See, e.g., the Smart Growth America Resilience States program, http://www.smartgrowthamerica.org/resilience/ (Accessed February 1, 2016). Palo Alto Seismic Risk Assessment Study December 21, 2016 Final Report Page 18 Local Hazard Mitigation Planning Under the Disaster Management Act The federal Disaster Management Act of 2000 (DMA) and subsequent amendments specify that local jurisdictions and states must have approved Hazard Mitigation Plans in place in order to be eligible for aid following Stafford Act Disaster declarations and a variety of other benefits. The State of California Multi-Hazard Mitigation Plan of 201318 is a comprehensive source of information about state level requirements, mitigation strategies, as well as local and state progress and opportunities for coordination (CSSC, 2013b). Palo Alto current complies with the DMA through its participation in the 2011 Santa Clara County’s Office of Emergency Services Annex to a 2010 region-wide “umbrella” Local Hazard Mitigation Plan (LHMP) created by the Association of Bay Area Governments (ABAG). To create the plan, representatives from County departments, private sector businesses, stakeholders, and thirteen of the fifteen incorporated cities in Santa Clara County collaborated in identifying and prioritizing potential and existing hazards. Mitigation objectives were identified and prioritized and specific action steps are listed, many of which have been taken. Palo Alto is currently preparing its contributions for updates to the Santa Clara County LHMP which must be completed, submitted to the state, and approved by June 2017. The LHMP process creates an opportunity to build synergies between an updated seismic program and other mitigation efforts city and county-wide. Federal Emergency Management Agency (FEMA) Pre-Disaster Mitigation Grants Cities such as Palo Alto are eligible to apply to the Pre-Disaster Mitigation (PDM) Grant Program19, created by Section 203 of the federal Robert T. Stafford Disaster Relief and Emergency Assistance Act, funded annually by Congressional appropriation. The program aims to assist States, territories, Federally-recognized tribes, and local communities in implementing a sustained pre-disaster natural hazard mitigation program. Cities must submit a detailed application during an open window to an annual competition. This program awards planning and project grants as well as providing assistance in raising public awareness about reducing future losses before disaster strikes. The program works on a 75%/25% cost share between FEMA and the local jurisdiction, respectively, with a maximum grant of $3 million. Cities can submit applications for multiple projects. Palo Alto could apply for support for future projects ranging from updating city owned structures, direct financing or grants to a private class of buildings or specific important structure. 18Available at: http://hazardmitigation.calema.ca.gov/docs/SHMP_Final_2013.pdf (Accessed February 1, 2016). 19 http://www.fema.gov/hazard-mitigation-grant-program (Accessed January 15, 2016). Palo Alto Seismic Risk Assessment Study December 21, 2016 Final Report Page 19 The disaster occurrence that opens a funding availability window does not necessarily have to affect Palo Alto directly. For instance, any California jurisdiction with an active LHMP was permitted to propose projects based on the Presidential Disaster Declaration for the 2015 Valley and Butte fires. Finally, if City of Palo Alto employees have not already taken advantage of it, training opportunities are available at the FEMA Emergency Management Institute in Maryland.20 3. LEGISLATIVE LEADERSHIP AND RECENT DEVELOPMENTS Palo Alto citizens are represented in the state Senate by Jerry Hill (D) and in the Assembly by Rich Gordon (D), 24th District, both with terms ending in 2016. High earthquake exposure throughout coastal California has led legislators from a variety of districts to author legislative proposals. Most recently, leadership has come from elected officials Nazarian, Chiu, and Monning. Several different committees in the California Assembly and Senate have jurisdiction over issues related to seismic safety and mitigation, building codes, and earthquake-related programs. In the Assembly, the Committee on Housing and Community Development has jurisdiction over building standards, common interest developments, eminent domain, farm worker housing, homeless programs, housing discrimination, housing finance (including redevelopment), housing, natural disaster assistance and preparedness, land use planning, mobile homes/manufactured housing, and rent control. The Assembly Committee on Local Government has authority over a range of General Plan, city finance, and housing policies. The most relevant Senate committee is Transportation and Housing, which governs issues such as transfer of ownership, financing districts, manufactured housing, building codes and standards, and common interest developments. Through these committees, legislators have considered several pieces of legislation related to earthquake mitigation in recent years. This review identified around ten such pieces of legislation debated in the 2013 to 2015 California legislative sessions, including passed, pending, vetoed or never fully heard bills (see Appendix B). Three key legislative proposals of interest to Palo Alto are briefly described here. Vetoed: Seismic Mitigation Tax Credits In the most recent session, Assembly Member Adrin Nazarian (District 46 in the San Fernando Valley) has sponsored legislation to create a state-wide seismic mitigation tax credit. The 2015 version AB 428 passed the legislature but was vetoed by the Governor based on funding availability, lack of technical and administrative capacity in the Franchise Tax Board, and the 20 https://training.fema.gov/emi.aspx (Accessed February 1, 2016). Palo Alto Seismic Risk Assessment Study December 21, 2016 Final Report Page 20 program’s potential complexity. The law would create a first-come first serve state tax credit equal to 30 percent of a “qualified taxpayer’s” “qualified costs” incurred for “seismic retrofit construction.” Pending: Permissions to Expand CEA Insurance Mitigation Discounts CEA was active in promoting legislation last year to empower the CRMP to offer grants for small residential retrofit work. Currently pending are AB 1429 (Chiu) and AB 1440 (Nazarian) that will provide $3 million dollars to the CRMP for expanding its current EBB program. Dead: Soft-Story and Older Concrete Mitigation Program Authorization AB 2181 (Bloom)21 would authorize each city, city and county, or county to require that owners assess the earthquake hazard of soft story residential buildings and older concrete residential buildings. It includes older concrete residential buildings constructed prior to the adoption of building codes that ensure ductility, and to initiates programs to inform owners, residents and the public about such dangers. There is no state law that forbids such programs, but this law if passed would remove any ambiguity that such programs are permitted and further justify local actions to that effect. 4. CONCLUSIONS Palo Alto is affected by numerous California laws and regulations related to seismically vulnerable structures, dating from the 1930s to the present day. The requirements relate to many aspect of the city’s built environment, including:  Code minimums for new construction;  Standards for seismic rehabilitation, including special provisions for historic properties;  Special programs and expectations for certain classes of use such as hospitals and public schools, and essential facilities;  Mandatory and voluntary unreinforced masonry programs;  Mandated zoning and land use planning requirements that restrict use and add requirements;  Grant and insurance programs available to one to four unit dwellings;  Financing authorities such as issuance of general obligation bonds and provisions for handling of property taxes for the costs of needed seismic retrofit; and 21 http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201320140AB2181 (Accessed February 1, 2016. Palo Alto Seismic Risk Assessment Study December 21, 2016 Final Report Page 21  Real estate disclosure requirements. Beyond some recent and pending efforts related to funding small residential mitigation grant programs and Earthquake Early Warning, there is no apparent momentum at this time for new statewide initiatives. That being said, Palo Alto can take any of several actions listed below to make sure it is complying with and taking the greatest possible advantage of existing state laws and programs. For example:  Palo Alto could confirm that all its URM buildings maintain the required signage.  Palo Alto could investigate the status of the approximately six Palo Alto area schools that have buildings on the State’s “AB 300 List” related to the Garrison Act.  Palo Alto could identify and review the status of public facilities covered under the Essential Services Building Seismic Safety Act and review its policies for guiding future planning for or rehabilitation of such structures.  Palo Alto could take advantage of the current update process for its Local Hazard Mitigation Plan to develop a strong, coherent, shared vision for how the city is going to address earthquake risk, and encourage jurisdictions and special districts nearby to do the same. Resources from FEMA Hazard Mitigation Grants and knowledgeable partners such as the Association of Bay Area Governments may be available to assist in this effort.  Palo Alto could work carefully to incorporate the most up-to-date assessment of local earthquake vulnerabilities as it revises the Safety Element of its General Plan.  Palo Alto could make sure its employees have taken advantage of the best available state and federal emergency management training programs that are relevant to earthquake disasters and recovery.  Palo Alto could develop partnerships and devote resources to more fully realizing the benefits of statewide offerings of tax relief and requirements regarding real estate disclosure in private sales. These policies aim to empower buyers and sellers to be better informed and able to make better mitigation decisions for themselves but may be carried out incorrectly and are under-enforced. Palo Alto could, for instance, work to make sure building owners apply for relief from any property assessment increases that would otherwise result from investing in an earthquake retrofit.  Palo Alto could seek closer ties to the California Earthquake Authority to help in promoting mitigation and insurance coverage for one to four unit homes. CEA has recently been one of Palo Alto Seismic Risk Assessment Study December 21, 2016 Final Report Page 22 the lead entities in offering policy ideas and grant funding for earthquake mitigation of small residential structures.  Palo Alto could evaluate whether it contains any vulnerable historic properties that might be eligible for tax credits under the Mills Act. This Act provides the most significant direct source of financial support from the state for local seismic retrofitting.  Palo Alto could investigate the issue of seismic habilitability minimums for suspected earthquake vulnerable buildings. Legal uncertainty exists about whether tenants are already entitled under current state law to request that their landlord upgrade a structure for being “substandard.”  Palo Alto could join with fellow jurisdictions in advocating for changes in state law to promote seismic mitigation.  Palo Alto could develop partnerships and devote resources to bringing more awareness among its citizens about low cost or free ways to become more aware and prepared for disasters more broadly. Cal-OES and many other state and non-profit institutions offer free online tools such as http://myhazards.caloes.ca.gov/ to help citizens understand their risks and take private action. The power to address unmet seismic safety and recovery concerns clearly rests in the hands of cities, counties, and special districts. If it so chooses, Palo Alto has legal authority to widen and/or strengthen its structural mitigation program. Based on what state laws allow and in some cases recommends, this review revealed the following non-exhaustive list of policy directions Palo Alto could pursue going forward: 1. Palo Alto could implement measures to energize and raise the effectiveness of its current program (outlined in City of Palo Alto Municipal Code 16.40), for instance by offering additional or larger incentives or devoting more resources to program visibility and implementation. Making the current program more effective would likely require additional funding sources. Other jurisdictions are experimenting with some success in using tools such as the new state-wide PACE financing program. Palo Alto could investigate opportunities to establish special Mello-Roos or Mills Act districts to help finance local seismic mitigation. 2. Palo Alto could expand its voluntary seismic mitigation program to address one or more combinations of additional building types, occupancy levels, or uses. The State Legislature has Palo Alto Seismic Risk Assessment Study December 21, 2016 Final Report Page 23 formally passed advisory legislation that encourages jurisdictions to adopt policies for building types like soft-story and older concrete.22 3. Palo Alto could create mandatory screening or evaluation measures for one or more vulnerable building types such as soft-story buildings or older concrete structures. Local precedents for these approaches exist and are described and discussed in a separate Task 3 report. 4. Palo Alto could make its current voluntary URM program mandatory. Mandatory URM programs in the State have been on average three times more effective than voluntary ones. 5. Palo Alto could create a program that mandates seismic retrofits for one or more additional (non-URM) vulnerable building types. The State Legislature has formally passed legislation that authorizes cities to adopt rehabilitation requirements for such programs This is important because cities must reference acceptable standards that state clearly how owners can comply with the requirement to retrofit. 6. Palo Alto could craft a program that combines any or all of the above measures. The Task 3 report shows that most leading local earthquake programs involve a customized mixture of goals, requirements, and features. 7. Palo Alto could continue the status quo current program. Nothing under current state law requires Palo Alto to change its current approach. The City of Palo Alto is currently gathering up to date earthquake risk information about its building stock and engaging its citizens and local experts in order to develop and evaluate specific policy alternatives. The ultimate goal is to recommend to city leaders the best possible policy directions for Palo Alto moving forward. 22 Health and Safety Code §19160-19168 http://www.leginfo.ca.gov/cgi-bin/displaycode?section=hsc&group=19001- 20000&file=19160-19168 Palo Alto Seismic Risk Assessment Study December 21, 2016 Final Report Page 24 5. REFERENCES CITED ABAG. (1992). Seismic Safety Incentive Programs: A Handbook for City Governments. Association of Bay Area Governments, Oakland. ABAG. (2014). Soft-Story Housing Improvement Plan for the Cit of Oakland. Oakland. Retrieved from http://resilience.abag.ca.gov/wp-content/documents/OaklandSoftStoryReport_102914.pdf Alesch, D. J. (2012). Natural Hazard Mitigation Policy: Implementation, Organizational Choice, and Contextual Dynamics. New York, NY: Springer Business Science. ATC. (2010). Here Today—Here Tomorrow: The Road to Earthquake Resilience in San Francisco. Community Action Plan for Seismic Safety, Redwood City. Retrieved from http://sfgov.org/esip/sites/default/files/FileCenter/Documents/9757-atc522.pdf CDCA. (2012). California Tenants: A Guide to Residential Tenants’ and Landlords’ Rights and Responsibilities. Retrieved January 16, 2016, from http://www.dca.ca.gov/publications/landlordbook/catenant.pdf CSSC. (2006). Status of the Unreinforced Masonry Building Law. California Seismic Safety Commission, Sacramento. CSSC. (2009). The Field Act and its Relative Effectiveness in Reducing Earthquake Damage in Public Schools Appendices. California Seismic Safety Commission, Sacramento. CSSC. (2013). California Earthquake Loss Reduction Plan / Pre-Earthquake Economic Recovery. California Seismic Safety Commission, Sacramento. CSSC. (2013). California Enhanced State Multi-Hazard Mitigation Plan. Sacramento: California Seismic Safety Commission. Hart, W. A. (2010). Special Publication 42 (Fault-Rupture Hazard Zones in California)y. Retrieved from http://www.conservation.ca.gov/cgs/rghm/ap/Pages/affected.aspx MMC. (2015). Developing Pre-Disaster Resilience based on Public and Private Incentivization. National Institute of Building Sciences, Multihazard Mitigation Council of the Center on Fire, Insurance, and Real Estate. OSHPD. (2005). California's Hospital Seismic Safety Law: History, Implementation and Progress. Sacramento. Seismic Risk Assessment Study December 21, 2016 Final Report Page 25 CHAPTER III LOCAL PROGRAM BEST PRACTICES ASSESSMENT Executive Summary This chapter summarizes the status of local seismic safety and mitigation programs in California with the purpose of informing Palo Alto’s effort to update its own approach. It has been prepared per Task 3 of the Consulting Agreement between Rutherford + Chekene and the City of Palo Alto. The content builds on the state-level policy review presented in Chapter II. The scope of Task 3 is to:  Review present best practices among jurisdictions and agencies in this area that require seismic retrofitting and provide incentives, and deliver a brief summary.  Provide a concise and practical written summary of what other jurisdictions and counties have done legislatively and programmatically to increase awareness about, assess, and motivate mitigation of seismically vulnerable buildings, both listing and helpfully classifying various approaches that have been used. The process of creating this review included search and review of published and online reports and materials, several phone interviews with community leaders as well as local and state government staff, and development of insights from the consulting team based on their experiences in this arena. Palo Alto is currently laying a solid foundation for future program development by investing in new inventory and risk information as well as community outreach and internal staff discussions. In doing so, it is joining a group of leading coastal California coastal jurisdictions such as Berkeley, Oakland, San Francisco, and Los Angeles that have recently stepped up their earthquake risk reduction efforts. While there is much learning and information sharing going on, each jurisdiction has developed their own customized policy package, and there is no single best model that Palo Alto can straightforwardly adopt. Existing local approaches differ widely in the following ways:  Policy mechanisms used to achieve progress; Seismic Risk Assessment Study December 21, 2016 Final Report Page 26  Scope of targeted building types or uses addressed;  Prioritization and compliance timeframes; and  Types of incentives offered. Policy mechanisms in use range all the way from inventory only to mandatory retrofit with timeframes under five years. In between are more gradual approaches such as voluntary retrofit advocacy, incentives, provisions that make building deficiencies more visible to the public (disclosure measures), and mandatory screening and evaluation requirements. An important policy decision is whether any mandated actions are implemented on a fixed timeline or triggered at sale or at some renovation cost threshold. Targeted building types and characteristics also vary. The most commonly addressed building type is unreinforced masonry (URM) construction due to state law SB 547, as discussed in the Task 2 report. Over half of URM programs in the state require mandatory retrofit, often but not always with a time frame on the order of ten to twenty years. By 2006, seventy percent of all identified URMs were either demolished or retrofit. Retrofit rates are on average three times higher in jurisdictions with mandatory retrofit compared to voluntary programs. Jurisdictions used a wide variety of both financial and policy incentives to assist URM owners. Some voluntary URM programs, including Palo Alto’s, coupled with incentives, have achieved similar rates of success to mandatory programs. Newer programs have focused on soft-story wood frame buildings, including ten Bay Area jurisdictions and most recently Los Angeles as of 2015. Soft-story wood frame building programs also range in requirements from notification only to mandatory retrofit, but several jurisdictions have innovatively used intermediate mandatory screening and evaluation phases to further assess risk exposure and determine the final set of buildings that will be affected by retrofit requirements. Soft-story wood frame programs have largely been supported in the local community. Even voluntary soft-story wood frame programs can be effective at motivating retrofit action; one fourth of the soft-story wood frame buildings in the City of Berkeley were voluntarily retrofit within a few years after a mandatory evaluation ordinance was implemented. Compliance timeframes in soft-story wood frame programs tend to be short, on the order of two to seven years. A comparatively small number of southern California jurisdictions have acted to address older concrete buildings, including Los Angeles, Burbank, Santa Monica, and Long Beach. Nonductile concrete frame and tilt-up concrete structures in particular are known to pose serious risks. Programs aimed at older concrete range from voluntary guidelines to mandatory evaluation Seismic Risk Assessment Study December 21, 2016 Final Report Page 27 and full retrofit requirements. Timeframes here vary greatly, from years to decades. Information about the implementation and outcomes of these few programs is very limited. Coming out of this local program review, alternative policy approaches for Palo Alto’s consideration include: Option 1: Status Quo. In this option, the existing ordinance with its mandatory evaluation, voluntary retrofit approach remains in place without changes. Floor area ratio bonuses are (were) available and could continue to be offered. Option 2: Increase Scope, but Retrofit Remains Voluntary. Additional categories of structures are added to the mandatory evaluation requirements. These could include any or all of the building types discussed above, potentially also using additional location, use, or occupancy criteria. Option 3: Similar to Option 2, but Additional Disclosure Measures are Incorporated. This option would be similar to Option 2, but with increased use of disclosure measures such as prominently posting the building list on the City website, notifying tenants, requiring signage, and/or recording notice on the property title. Option 4: Increase Scope, Some Categories are Voluntary and a Few Categories are Mandatory, with Enforcement by Trigger Threshold This option builds on Option 3, but retrofitting would be required for some building types at whenever future time a building is sold or undergoes substantial renovation above a set threshold. Option 5: Increase Scope, Some Categories are Voluntary and a Few Categories are Mandatory, with Enforcement by a Fixed Timeline This option would be similar to Option 4, but retrofitting is required according to a fixed timeline. Timelines and enforcement emphasis could vary depending on tiers or priority groupings to motivate prompt action for the most vulnerable or socially important structures. Option 6: Increase Scope, but More Categories are Mandatory This alternative is similar to Option 5, but retrofitting would be required for additional categories on a fixed timeline. Palo Alto can also make its programs more stringent over time. Explicit phasing has been successful in jurisdictions like Berkeley and San Francisco for generating political consensus and enhancing administrative feasibility. Seismic Risk Assessment Study December 21, 2016 Final Report Page 28 Other program features and implementation factors should be considered in designing a future program. Palo Alto will need to decide whether location, occupancy type, and/or number of occupants should be included in the scope or just the timeline categories. Whether and which incentives to offer is an important issue from a political and economic feasibility perspective, one that affected community members will want to see inclusively addressed. The community should also be involved in discussing which if any disclosure measures are considered necessary and appropriate, such as signage. Additionally, based on the work of cities such as Berkeley, San Francisco, and Los Angeles, Palo Alto has a variety of opportunities to expand and better connect its earthquake mitigation program efforts to other city efforts in support of community resilience goals more broadly. For instance, Palo Alto could encourage building occupancy and resumption program like San Francisco, encourage or fund installation of strong motion instruments, or pursue special programs or requirements for cell phone towers, facades, private schools, and/or post- earthquake shelter facilities. Several leading local program models and planning resources for these types of efforts are introduced in Appendix D. 1. INTRODUCTION This document is meant to be a resource and guide for the Palo Alto community and city leadership as they weigh program needs and options for seismic mitigation policymaking going forward. It offers comprehensive information on many topics so readers with different backgrounds can advance their understanding, along with summary tables and conclusions specific to Palo Alto’s present effort. The approach taken was to document and assess existing and proposed programs that a selected set of other jurisdictions are using to address earthquake vulnerabilities in local buildings. This was done using analysis of city websites and documents, search and review of published and online reports, several phone interviews with local officials and engineering profession leaders, and development of insights from the consulting team based on their experiences in this area. Focusing on a selected set of jurisdictions was appropriate for several reasons. First, relatively few jurisdictions are developing leading earthquake mitigation programs, and those are the most informative models to draw upon. Second, data about jurisdictional programs is very limited. Much of the information that does exist is anecdotal, and it was not within the scope of this review to collect comprehensive new data or to cover a large number of jurisdiction programs statewide or in other countries. Finally, this review emphasizes classification of Seismic Risk Assessment Study December 21, 2016 Final Report Page 29 similarities and distinctions among a range of leading jurisdiction earthquake structural mitigation efforts. Policies related to wider earthquake hazard science and awareness, emergency management, and longer term recovery programs that have local relevance are briefly mentioned, but are also beyond the scope of this report. Following this introduction, Section 2 describes and compares a range of existing local policies and programs. The information is organized by key features (for instance, the types of buildings regulated, the kinds of requirements imposed on them, and the types of incentives offered). Section 3 presents summary conclusions for Palo Alto. Figures throughout and two appendices provide further detail on a range of program elements. Formal recommendations for Palo Alto will evolve after completion of other project tasks, and through the process of Advisory Group and City staff discussions. Seismic Risk Assessment Study December 21, 2016 Final Report Page 30 2. ANALYSIS OF POLICY FEATURES AND OUTCOMES OF LOCAL SEISMIC RISK MITIGATION PROGRAMS This section analyzes the state of local earthquake policymaking in California by presenting major types, similarities, and differences in program features. The word “features” indicates here a wide array of program nuances, including but going well beyond the characteristics of the buildings being targeted and the basic policy mechanism used, namely voluntary or mandatory retrofit requirements. Woven throughout are examples of jurisdictional programs that exemplify certain of these features and distinctions, along with discussion of program outcomes and effectiveness. Analyzing programs this way highlights options and key factors that Palo Alto should consider and tradeoffs it may need to confront in developing its own seismic mitigation strategy going forward. Much innovation in local earthquake risk reduction policy is happening in California from which Palo Alto can learn. This is particularly true in the case of soft-story wood frame residential buildings,23 for which mandatory retrofit ordinances are now in place in Fremont, San Francisco, Berkeley, and Los Angeles. However, what makes one program different from or more successful than others cannot be understood simply by identifying the types of structures addressed. Also important are the specific set of requirements that owners must comply with, the timeframes in which requirements must be carried out, and the types and sizes of the incentives offered. Comprehensive, summary information to inform this review are rare. In-depth California Seismic Safety Commission URM reports cover every city and county for URM law compliance up to 2006. But beyond URM programs, data to support this assessment was limited and largely anecdotal because comprehensive research on seismic mitigation programs is rare. An 23 “Soft-story” refers to a condition where one of the stories in a multi-story building, usually a parking level that doesn’t require partitions for functionality, is weaker and/or too flexible compared to the story above it. Another acronym sometimes used is “Soft-, Weak-, or Open-Front” buildings, or SWOFs. During strong ground shaking, concentration of damage in the soft or weak story can significantly increase the chance of collapse or damage sufficient to render the building unusable after the event. Many communities are concerned with soft-story wood frame buildings. Most of this type of construction can be found in apartment buildings built in the 1960s and 1970s with first floor garage openings and some mixed-use properties with ground floor commercial space. In that era, the safety risks of soft-stories were not yet fully understood. Vast numbers of these buildings exist in California communities that grew substantially prior to the 1980s and 90s when building code changes were introduced. Findings related to evaluating and improving soft-story wood frame performance can be found in FEMA P-807, available at: https://www.fema.gov/media-library/assets/documents/32681 (Accessed February 3, 2016). Seismic Risk Assessment Study December 21, 2016 Final Report Page 31 Association of Bay Area Governments (ABAG) survey that collected program information from one third of California jurisdictions in the 1990s documented a wide variety of program implementation, effectiveness, and incentive approaches; however, its information is now significantly out of date. Policies of certain leading jurisdictions have been studied in depth at various windows in time, such as Palo Alto ) (Herman et al, 1990), Berkeley (Rabinovici, 2012; Chakos, 2002), Oakland (Olson, 1999), and Los Angeles (Comerio, 1992). These studies reveal how unique and complicated local earthquake mitigation programs can be, not just in format but also implementation. Outcomes cannot be understood without considering the local building stock and economic context, concurrent policy developments, political support, local government resources and administrative capacity, how policy features are combined, community engagement strategies used, and emphasis put on enforcement. At the outset, Palo Alto’s unique current program and historic role in the evolution of earthquake mitigation program design should be recognized. Its 1986 law was among the first to require owners of suspected hazardous properties to have a qualified engineer evaluate their buildings. In addition, Palo Alto’s Seismic Hazards Identification Program (Chapter 16.42) addressed three categories of buildings: URM buildings (Category 1), structures built before 1935 with over 100 occupants (Category 2); and structures built before August 1976 with over 300 occupants (Category 3). This demonstrates how occupancy level and year built can also be used in combination with other factors as the basis for inclusion in a program. The mandatory evaluation reports for these structures were due in 1990. The September 2014 status of affected properties is shown in Table 1. Seismic Risk Assessment Study December 21, 2016 Final Report Page 32 Table 1: Status as of September 2014 of properties included under Palo Alto’s current earthquake risk reduction ordinance. Category I – Category II – Category III – All Categories URM over 1900 sq.ft. and over six occupants Built before 1935 and over 100 occupants Built before 8/1/76 and over 300 occupants Retrofit 22 13 5 40 Demolished 14 2 5 21 Demolition Proposed 0 0 4 4 Exempt 1 0 0 1 No Change 10 4 9 23 Totals 47 19 23 89 Source: 12/9/14 City of Palo Alto Policy and Services Committee staff report. Palo Alto’s decision to focus on these three categories grew out of a broader earthquake risk assessment effort going on at that time. City leaders initiated a comprehensive search of paper records and a street walk-style inventory of a wide variety of seismically-vulnerable building types in 1984. They then engaged the community in a deliberative process to assess risk and determine priorities among building types and policy approaches (Herman, Russell, et al. 1990; CSSC 2006). The following section describes alternative ways different jurisdictions have chosen which buildings to target. Scope: Targeted Structural Systems, Year Built, and Other Characteristics The primary feature that varies among jurisdictional programs is the types and characteristics of the structures that are addressed. As discussed in the Task 2 report, California’s earthquake policy history started in the 1930s with laws that increased design requirements for buildings related to one particular use—public schools, and banned new construction of one particular structural system or type—buildings with unreinforced masonry (URM) load bearing walls. Much later in the 1970s and 80s, both state and local new laws were passed targeting URMs built before 1933, certain locations (e.g., hazard zoning with prohibitions or heightened evaluation and design scrutiny for new construction or rehabilitation in those zones), a wider Seismic Risk Assessment Study December 21, 2016 Final Report Page 33 set of uses (e.g., hospitals and essential services buildings) and additional structural types (e.g., older concrete buildings and manufactured homes). The choices jurisdictions make about which buildings to target are closely tied to the legal basis underlying earthquake mitigation policymaking. Laws that impose added burdens or responsibilities on certain properties or people must clearly specify which buildings are applicable and justify why for those particular buildings have been selected. A compelling, documentable, and actionable public purpose must exist to invoke a jurisdiction’s police powers and responsibility for public wellbeing. The central rationale for regulating seismically vulnerable structures is safety; a strong case for government intervention exists where there is an unacceptably high likelihood of collapse or damage that could lead to human entrapment, injury, or death. Technical research, evidence, and evolving standards of practice in structural engineering must exist for this to be considered reasonable. Once a new practice becomes embedded in a model building code, construction to former code standards is no longer allowed. Jurisdictions review permits and inspect construction work in progress, but lax compliance cannot entirely be ruled out. For any particular structural system, year built (or age) is the most commonly used risk indicator because it reflects the building code version that was in effect when a structure was first constructed. What was once considered an acceptable construction practice may become obsolete or even be considered negligent years later. Code updates are usually made on a three-year cycle to keep up with changes in construction practices, technologic advancements, and improved understanding how buildings perform under loads, but adoption by jurisdictions can be uneven and lag behind many years. Jurisdictions must also address which code year built they will use as inclusion criteria for their earthquake mitigation programs. Benchmarking to newer standards may be justified if it reaches more buildings that could experience significant damage in an earthquake, but a larger percent of building owners and tenants will be affected. Code changes are also proposed based on lessons learned from practical experience over time, in this case from earthquake performance outcomes in jurisdictions all around the world. Unreinforced Masonry Buildings URM buildings have been a concern for collapse and falling debris hazard ever since the 1933 Long Beach earthquake, after which new construction of URM structures in California was outlawed. The most significant contemporary law addressing a specific Seismic Risk Assessment Study December 21, 2016 Final Report Page 34 building type is the 1986 state legislation (Senate Bill 547). This state mandate, also summarized in the Task 2 report, required jurisdictions to identify and adopt programs for addressing existing URM buildings. Several jurisdictions (most prominently Long Beach, Los Angeles, Santa Cruz, Palo Alto, and San Francisco) had existing URM building ordinances and programs in place prior to the state mandate. Counties and municipalities were allowed to craft their own approach, resulting in a wide range of strategies. In general, three main types of local programs were utilized: 1) mandatory retrofit, 2) voluntary retrofit, and 3) notice to owners that the structure is a URM building. When retrofits were encouraged or required, the local government set the standards to be met. More than half (52%) of affected jurisdictions adopted a mandatory program, which has proven by far to be the most effective type. Eighty-seven percent of identified properties have been retrofitted or demolished in jurisdictions with mandatory programs, compared to thirteen to 25 percent in jurisdictions with other program types. Reviews of the URM Law by the CSSC have shown it to be a success over the long term. In 2006 (the last comprehensive state survey available), Compliance with the policy is nearly universal at 93%, and over 70% of identified URM buildings have been either retrofitted or demolished (CSSC, 2006). A comprehensive review of URM program formats throughout the Western United States is available from FEMA and the California Seismic Safety Commission (FEMA, 2009; CSSC, 2006). Older Concrete Buildings Older concrete structures (built pre-1970s and in some cases pre-1990s) exemplify the importance and difficulties of using code year as an indicator of seismic risk. Public awareness of older concrete risks may be lower than for soft-story wood frame buildings, but they are common in large numbers in the Western US and throughout California. The Concrete Coalition,24 a network of engineers, research organizations, and policymakers, estimates that there are as many as 17,000 non-ductile concrete buildings in California (Concrete Coalition, 2011). The societal importance of older concrete structures can be significant, as they often have higher occupancies and are widely used for residential tall buildings, commercial, or even critical service facilities. 24 Information about the Coalition can be found at the organization’s website: http://www.concretecoalition.org/, Accessed March 18, 2016. Seismic Risk Assessment Study December 21, 2016 Final Report Page 35 Poorly performing concrete structures can have devastating effects for occupants, owners, and communities, as numerous major quakes in California and abroad have demonstrated. The 1971 Sylmar earthquake brought down several concrete structures, killing 52, and the 1994 Northridge earthquake wrecked even more, including a Bullock's department store and Kaiser medical office. In the 2011 quake in Christchurch, New Zealand, two concrete office towers collapsed killing 133 people. Many of the 6,000 people killed in the 1995 earthquake in Kobe, Japan, were in concrete buildings. A scenario report for the San Francisco Bay Area estimates that older concrete buildings in a repeat 1906-level event would contribute a large portion of the predicted deaths and injuries (ABAG, 1999). Also at risk are investors, the survival of occupying businesses, and livelihoods. Neighborhoods can be at risk too if a district has a high concentration of older concrete buildings, as they may be blighted or loose functionality or economic viability after an event. Older concrete buildings of concern have a variety of features and are not always easy to characterize. One issue is nonductile (essentially too brittle, insufficiently reinforced) concrete, prior to enforcement of ductile concrete codes in the 1970s. Another is tilt-up structures, where a concrete is poured on the ground, cured, and then lifted (or “tilted”) up and connected to roof and floor framing where the ties between the roof and wall and floors and walls are often inadequate. Vulnerable concrete structures can be difficult to spot and often complex to retrofit (ATC, 2012). These are factors in why only a small number of California jurisdictions have adopted policies for older concrete (Table 2). The City of Los Angeles (Building Code Divisions 91 and 96) recently required evaluation and upgrade if needed for nonductile concrete structures and since Northridge has required triggered upgrading on pre-1976 tilt-ups. City of Santa Monica (Municipal Code 8.80) requires evaluation and upgrade if needed for nonductile concrete structures, along with other structural types. In 2014 Santa Monica hired the engineering firm Degenkolb to inventory buildings that might be subject to its requirements—a first step in reviving efforts that had been stalled for more than 20 years.25 Two jurisdictions, Long Beach (Chapter 18.71) and Burbank, have taken the approach of providing voluntary guidance. Burbank’s program addresses older reinforced concrete and concrete frame buildings with masonry infill. 25 http://www.latimes.com/local/lanow/la-me-ln-santa-monica-will-hire-quake-engineers-to-id-all-vulnerable- buildings-20140527-story.html (Accessed March 20, 2016). Seismic Risk Assessment Study December 21, 2016 Final Report Page 36 Table 2: Summary table of local programs for addressing older concrete building vulnerabilities. Jurisdiction Number of Older Concrete Buildings Program Type Targeted Building Characteristics Deadline for Screening Deadline for Evaluation Deadline for Completion Los Angeles Unknown (Concrete Coalition inventory* = 1500) Mandatory evaluation leading to mandatory retrofit Pre-1976 tilt- ups and nonductile concrete 3 years 10 years 25 years Santa Monica Unknown (Concrete Coalition estimate* = 173) Mandatory evaluation leading to mandatory retrofit Pre-1978 nonductile concrete. n/a 275 days Deadlines vary from 1 to 4 years after evaluation report submission, depending on priority tiers. ** Long Beach Unknown (Concrete Coalition estimate* = 396) Voluntary guidance Nonductile concrete n/a Burbank Unknown (Concrete Coalition estimate* = 132) Voluntary guidance Commercial pre-1977 reinforced concrete and concrete frame buildings with masonry infill n/a * Source: (Concrete Coalition, 2011). ** Santa Monica’s Building Type definitions are: Type I: building that are vital in the event of an emergency; Type II: >100 occupants; Type Ill: 20 - 100 occupants; Type IV: < 20 occupants. Soft-Story Wood Frame Buildings Wood frame soft-story buildings are a good example of a vulnerable building type that gained widespread attention after performing poorly in specific earthquake events. In October 1989, the hazard and widespread presence of this building type were made Seismic Risk Assessment Study December 21, 2016 Final Report Page 37 evident by the dramatic and costly collapses and fires in the San Francisco Marina District in the Loma Prieta earthquake. Then again, in the Northridge event in 1994, widespread damage and several high profile collapses occurred. The Northridge- Meadows apartment complex collapse that led to sixteen deaths in particular captured media, public, and expert attention. Following these events, soft-story residential buildings started to be viewed as not just a threat to the owner’s pocketbook but to the surrounding community; tenant safety and local recovery could also be at stake. Given their prevalence, losing hundreds of soft- story apartment buildings could have large impacts on community. For example, soft- story buildings constituted about half (7,700) of the 16,000 housing units rendered uninhabitable in the Bay Area by the 1989 Loma Prieta Earthquake and over 34,000 of the housing units rendered uninhabitable by the Northridge Earthquake in 1994 (ABAG, 2003). Table 3 describes a wide range of local efforts to address soft-story wood frame buildings, highlighting key program features and distinctions (many of which are discussed in later sections regarding prioritization, timing, and policy mechanisms). Seismic Risk Assessment Study December 21, 2016 Final Report Page 38 Table 3: Summary of local soft-story wood frame policy efforts showing key distinguishing program features. (Sources: Rabinovici, 2012; ABAG, 2016). Jurisdiction Year Number of Soft- story Buildings Program Type Targeted Building Characteristics Priorities or Tiers Deadline for Evaluation Deadline for Permit Deadline for Completion Los Angeles 2015 unknown Mandatory Evaluation leading to Mandatory Retrofit Pre-1978 wood- frame structures with soft, weak or open front first floor conditions with two or more stories and five or more units. Only enforcement is prioritized by tiers. Priority I - Buildings containing 16 or more dwelling units. 1 year 2 years 7 years Priority II - Buildings with three stories or more, containing fewer than 16 dwelling units. Priority III - Buildings not falling within the definition of Priority I or II. Oakland 2015 1,380 Mandatory Screening (passed 2009) leading to Mandatory Retrofit Pre-1985 multi- family wood frame structures with five or more units n/a Table 3 (continued). Seismic Risk Assessment Study December 21, 2016 Final Report Page 39 Jurisdiction Year Number of Soft- story Buildings Program Type Targeted Building Characteristics Priorities or Tiers Deadline for Evaluation Deadline for Permit Deadline for Completion Berkeley 2014 310 (at time of 2005 ordinance) Mandatory evaluation law (2005) leading to mandatory retrofit (2014) Multi-family wood frame structures with five or more units n/a 2 years (under previous soft-story evaluation ordinance) 2 years 4 years San Francisco 2013 2,800 Mandatory evaluation leading to mandatory retrofit Wood frame construction with five or more residential units and two or more stories with permit for construction submitted prior to January 1, 1978 and five or more units Tier I - Any building containing educational, assembly, or residential care facility uses (Building Code Occupancy E, A, R2.1, R3.1, or R4) 1.5 years 2.5 years 4.5 years Tier II - Any building containing 15 or more dwelling units 2.5 years 3.5 years 5.5 years Tier III - Any building not falling within another tier 3.5 years 4.5 years 6.5 years Tier IV - Any building containing ground floor commercial uses (Building Code Occupancy B or M), or any building in a mapped liquefaction zone 4.5 years 5.5 years 7.5 years Table 3 (continued). Seismic Risk Assessment Study December 21, 2016 Final Report Page 40 Jurisdiction Year Number of Soft- story Buildings Program Type Targeted Building Characteristics Priorities or Tiers Deadline for Evaluation Deadline for Permit Deadline for Completion Alameda 2011 70 Mandatory evaluation Five or more units n/a 2 years Fremont 2005 22 Mandatory retrofit Apartment house with more than ten units or more than two stories Group 1 - Apartment house with more than ten units or more than two stories n/a 2 years 4 years Group II - Apartment house with ten or less units and fewer than three stories high n/a 2.5 years 5 years Seismic Risk Assessment Study December 21, 2016 Final Report Page 41 Public Purpose, Occupancy, Location, and Other Considerations Another stated goal of seismic mitigation laws is to promote continuity of vital services related to the community’s social and economic viability. In addition to direct safety concerns, this further justifies targeting special uses and buildings that affect larger numbers of people such as schools, critical public buildings, and hospitals. Beyond critical community functions, however, it is less obvious where to draw the line between public and private risks and benefits. How many people need to live or work in a building before a suspected earthquake vulnerability becomes something an owner or tenant should not be allowed to make decisions about on their own? The answer involves some sense of proportionality. In other words, local governments tend to seek a reasonable balance between the number of building owners that will need to comply and the burden of compliance, with the public benefits that will be achieved (which we can assume to be protection of health and preservation of community functionality). That is a key reason why buildings with higher occupancy or higher residential unit total are sometimes targeted. Such buildings not only have more human beings that work or live in them, but the fate of the buildings also has a larger impact on local housing availability, parking, and other community impacts. For instance, most existing soft-story wood frame programs are targeted at multifamily buildings with five or more residential units (see Table 3). Larger structures are also presumably worth more, so the owner is more likely to have sufficient equity in the property or cash flow to make capital upgrades. A structure’s number of stories may also relate to the degree of risk or perceptions of public importance. Problematically, more stories may not always translate into higher risk; for example, two-story soft-story buildings may not necessarily be less dangerous compared to three story ones, depending on the materials used and the positioning of occupied units (Bonowitz and Rabinovici, 2012). A good example of a program that uses location or zoning as part of its targeting is Palo Alto’s Municipal Code Chapter 18.18.070 Floor Area Bonuses incentive. The incentive is only available for buildings in Commercial Downtown (CD) District, which has sub-zones based on CD-C Commercial, CD-S Service, and CD-N Neighborhood designations. Zoning benefits are different for each of these designations, the square footage, and also if the building in question is historic property. Seismic Risk Assessment Study December 21, 2016 Final Report Page 42 Ownership structure is another potential scoping issue, for instance, whether condominiums should be included.26 The City of Berkeley did not include condominiums in its soft-story wood frame building ordinance, but the jurisdictions of San Francisco and Fremont did. Condominiums often face additional barriers in both voluntary and mandatory retrofit policy settings, because homeowner association policies and practices can make it difficult to agree on what should be done and to obtain financing. Anecdotally, in Palo Alto and elsewhere, properties where a majority of owners want to retrofit have not been able to accomplish that work because of hold-out members that do not want to proceed or pay an additional assessment in order for the association to be able to afford it. The overall influence on retrofit behavior of either including or excluding condominiums is not known. A final point that should be noted about program scope is that some properties that would otherwise be subject to a law can be classified as exempt for certain reasons. For instance, most jurisdictional ordinances offer exemptions for buildings that have had significant recent renovations or retrofit upgrades that addressed the hazardous condition. Some jurisdictions explicitly include protocols for hardship provisions such as extended timelines that might be made available for individual or institutional owners that can demonstrate an unusual degree of difficulty raising sufficient funds to comply. Timelines, Pacing, and Prioritization For several reasons, jurisdictions find it useful to both prioritize and pace their earthquake program efforts. Time is a powerful ally and policy variable. Once a jurisdiction commits to the idea of a new program, timeframes can be used to make implementation manageable and soften the economic impacts of the program on city staff and budgets, on owners, and on the local economy. Retrofitting is also a process that cannot be sped up beyond a certain point. Design, arrangement of financing, and completion of retrofit work can be an arduous process, naturally taking from months to years. Lengthier time windows allow owners to plan for how to comply in the way that works best for them. Longer time frames can also work to the advantage of jurisdictions, which rarely have sufficient administrative capacity, political will, and community tolerance to take on multiple seismic risk issues simultaneously over a short 26 Keep in mind that condominium status can change. The City of Berkeley decided not to include condominium properties on its Suspected High Hazard Building list. However, owners in some apartment buildings in the process of being converted to condominium status when needing complying with the law experienced difficulty getting loans (Rabinovici, 2012). Seismic Risk Assessment Study December 21, 2016 Final Report Page 43 period of time. Following are several examples of how different jurisdictions have used timing as part of their program structure. Trigger-Enforced Timing Some jurisdictions have opted to require earthquake retrofit to be done only when the property is sold and/or an owner submits plans for renovation, additions, or rehabilitation that meets certain criteria, for instance 50% of the assessed value. This is similar to triggers for energy upgrading, sewer lateral replacement for single family homes, modifications for Americans with Disabilities Act compliance, or sprinkler and other fire code changes. A jurisdiction taking this approach does not need to inventory vulnerable structures in advance and may be able to do project reviews at current staffing levels. However, there are several downsides. Owners may resent encountering these potentially substantial “surprise” costs when initiating a project, and might strategically manipulate project valuation to avoid needing to comply, resulting in lower fees for the city. For those owners that are aware of the provisions, potentially important non-seismic renovation work that would have been done otherwise might be postponed as a result of increased project cost and complexity. Most importantly, critical safety and resilience retrofit work might go decades without being done. Proactively-Enforced Timing with Phasing and/or Prioritization Proactive enforcement means that a jurisdiction identifies, notifies, and actively seeks to help owners participate or comply in a program. It is common when these programs include mandates to use a variety of time frames for buildings with different characteristics. For instance, Los Angeles’s 2015 ordinance requires compliance for soft- stories within seven years and older concrete within 25 years. Another common strategy is to classify buildings of a single targeted structural type into tiers or priority levels among a particular type of building, for instance based on age, number of stories, unit totals, or occupancy. Compliance can then be mandated sooner in order from most to least serious in terms of estimated risk and social importance. Time frames for soft-story programs, for instance, commonly relax deadlines by about one year per tier (See Deadlines by programs in Table 3). Both of these phasing approaches allows jurisdictions to set a feasible administrative pace and put an early focus on buildings with vulnerabilities and characteristics that most affect the public. Seismic Risk Assessment Study December 21, 2016 Final Report Page 44 An overall pacing strategy can also be used to phase implementation of a larger set of resilience policies and programs that go beyond different building types to address other aspects of community earthquake vulnerability. For instance, San Francisco mandated soft-story wood frame building retrofitting, then mandated its 120 private schools to do seismic evaluations of their buildings regardless of structure type,27 and then embarked on efforts to assess and create programs for poorly anchored façades and unreinforced masonry chimneys. All three approaches – 1) phasing and compliance time frames that differ for structures, 2) in different priority tiers, 3) within a multifaceted comprehensive plan – were used in recommendations from San Francisco’s decade-long Community Action Plan for Seismic Safety (CAPSS) project (ATC, 2010). Figure 2 shows an earlier version of how San Francisco thought about address different building types and uses more or less quickly and with gradually increasing requirements. Later, these concepts were embedded into the jurisdiction’s policies as part of San Francisco’s 30-year Earthquake Safety Implementation Plan (SF ESIP, 2011). That plan represents a commitment by the city to phase in additional efforts over this extended period, and deliberately addressed a wide range of vulnerable structure types, uses, or occupancy combinations considered important to community resilience (e.g., private schools, façades). Additional advantages of long time frames are to allow more time for detailed studies or research if needed, for political or community consensus to develop, and give owners ample notice of bigger changes to come. 27 Ordinance text available at: http://sfgov.org/esip/sites/default/files/FileCenter/Documents/12716- Ordinance%20No%20202-14%20Private%20Schools%20EQ%20Evaluation.pdf (Accessed February 3, 2016). Seismic Risk Assessment Study December 21, 2016 Final Report Page 45 Figure 2: Excerpt of Table 5 from the summary San Francisco CAPSS Project report (ATC, 2010) showing recommended timelines for prioritizing and phasing different kinds of efforts to address a variety of building types and uses. Note: Categories represented in rows are not mutually exclusive. For instance, some private school facilities may be located in a house of worship or historic structures. Seismic Risk Assessment Study December 21, 2016 Final Report Page 46 Policy Mechanisms and Requirements In addition to creating a set of targeting and eligibility criteria, jurisdictions can use a variety of methods to motivate appropriate seismic upgrades to be done. Requiring owners to do retrofit work is only one approach. Other tools range from simple notification, disclosure measures,28 offering incentives, voluntary retrofit initiatives, and mandated screenings or evaluations, each of which is described below in more detail. Another major distinction is whether a jurisdiction implements requirements only when triggered during rehabilitation projects that meet certain criteria, or proactively, such as doing an inventory to identify affected properties and imposed deadlines. Figure 3 provides definitions of a spectrum of policy mechanisms that have been used. This view corrects the false impression that jurisdictional programs have to be either “voluntary” or “mandatory.” In reality, most jurisdictions create a policy package that combines several approaches. Furthermore, that package can evolve over time as more and more buildings are upgraded, new information or technical recommendations become available, or with changes in the political or economic climate. Inventory Identifying the number and locations of buildings of concern is an essential first step to finding out which buildings are the most vulnerable and how significant those issues may be for the community. Many jurisdictions launch their earthquake program development process with a special-purpose, one-time discovery effort meant to compile data about potentially seismic at-risk properties and to gauge the scope of the issues faced by the community. This can be difficult and time consuming, and jurisdictions often rely on outside consultants or professional organizations and academic volunteers for assistance. Existing property databases generally contain less than complete information to be able to draw conclusions, and some relevant information may only exist in paper form. Street-walks, side walk surveys, or visits to a selected sample of properties are common. It is important to distinguish early investigation and risk analysis efforts that might involve only a subset of properties from the development of an exhaustive list of properties meeting certain criteria that could be officially noticed or subjected to a 28 Disclosure policies are designed to increase the transparency and openness surrounding an issue of social importance. Examples include mandatory disclosure to tenants, freedom of information requirements, public signage, searchable online listing, or official notice placed on a title or deed. These are described in Table . Seismic Risk Assessment Study December 21, 2016 Final Report Page 47 particular ordinance. The City of Berkeley is one jurisdiction that used a list created by staff and consultants as the basis for determining which properties should be included on that city’s suspected hazardous properties list. Other cities have instead chosen to put buildings on an initial suspected hazard list based on zoning, number of units, or other generally available criteria. Palo Alto’s current investigation into updating its seismic risk management program involves review of digital records, paper records, and side walk surveys. The side walk survey portion includes approximately half of the buildings of interest. A similar detailed field effort would be needed on the remaining portion of buildings to develop a comprehensive inventory list. No inventory list will be perfect, so no matter which approach is used, some kind of appeal, confirmation, or screening processes are needed before granting any exemptions or enforcing requirements. Depending on the building type, issues of improper inclusion or exclusion from a list may be more or less likely. For example, rapid visual determination is easier for wood frame soft-story conditions, but it would be hard for even an experienced engineer to identify a steel moment frame, braced frame building, or a concrete frame building when the structural elements are hidden from view by architectural finishes. Seismic Risk Assessment Study December 21, 2016 Final Report Page 48 Figure 3: Diagram showing a spectrum of mitigation policy approaches ranging from least to most stringent. Inventory Only Notify Only Voluntary Retrofit Disclosure Approaches Mandatory Screening Mandatory Evaluation Mandatory Retrofit Staff, consultants, and/or a volunteer organization has created an inventory of one or more suspected hazard building types, but the list is not officially released to the public or acted upon. An inventory exists and a policy has been established to notify owners if their property is on a suspected hazard building list. Owners of properties on a publically available list are formally encouraged to retrofit, possibly by offering of technical assistance, financial help, or policy incentives. Properties on a publically available list are subject to one or more methods of forced information sharing, such as tenant notification, public signage, or recorded notice on the property title. Owners of properties on a publically available list are required to submit a form within a fixed time window that is filled out by a licensed building professional. Typically, the goal is to determine whether the property has certain characteristics that might associate with risk.* Owners of properties on a publically available list are required submit within a fixed time window a formal evaluation completed by a licensed engineer. Typically, a determination is then made about whether the property has certain risk features.* Owners of properties on a publically available list are required to complete a retrofit by a certain date. This step may be implemented following a screening or evaluation phase.* * Note: Implementation and enforcement might be either: 1) triggered by sale or a significant work threshold or 2) via a proactive compliance timeline. Increasingly Stringent Seismic Risk Assessment Study December 21, 2016 Final Report Page 49 Notification Once an inventory is created, a jurisdiction either by default or deliberately chooses whether or not to make that list public or take further actions. Some jurisdictions have created a list then not acted on it for a decade or more. For example, in the case of soft- story wood frame buildings, Santa Clara County’s list has remained dormant since 2003, and nine years passed between the creation of a list and when the City of Berkeley passed its soft-story ordinance. The most basic step is to notify owners that their property is on some kind of suspected earthquake hazard list. This is currently the URM policy of a small number of California jurisdictions, and the soft-story wood frame policy in the jurisdictions of San Leandro, Sebastapol, and Richmond. Available data about notification only programs shows them to have little impact; for instance, seven percent of URM properties in jurisdictions with this type of program are retrofit as of 2006 (CSSC, Status of the Unreinforced Masonry Building Law, 2006). Little evidence exists about potential liability and market value impacts from becoming a “listed” earthquake vulnerable building. However, concern exists that mere creation of a list could have negative impacts if it becomes public (see more about Disclosure Approaches below). A Freedom of Information Act (FOIA) filing (for instance, by a journalist or citizen) could be used to compel a jurisdiction to reveal a list that has remained dormant. This happened in the case of Los Angeles with the Concrete Coalition’s inventory of suspected concrete structures.29 Experts in the earthquake field believe that media coverage of the list contributed to eventual passage of that city’s mandatory evaluation ordinance in 2015, which included concrete structures. In sum, notification programs may have several downsides for owners while offering little in terms of on the ground risk reduction for the community. Voluntary Retrofit Following an inventory and notification process, or even after a mandatory screening or evaluation phase (see below), jurisdictions can choose to let owners decide whether or not to retrofit their building. Simply urging building owners that own a potentially earthquake vulnerable building may be enough to lead some to voluntarily retrofit. 29 Key Los Angeles Times articles can be found at: http://graphics.latimes.com/me-earthquake-concrete/ and http://www.latimes.com/local/lanow/la-me-ln-concrete-buildings-list-20140125-story.html (Accessed April 11, 2016). Seismic Risk Assessment Study December 21, 2016 Final Report Page 50 Retrofit rates for jurisdictions with voluntary URM retrofit programs averaged 16% in 2006 (CSSC, Status of the Unreinforced Masonry Building Law, 2006), and likely much lower than that for soft-stories (though no systematic data currently exist). Jurisdictions that take a voluntary route often do so because they have a small number (presumably less socially-significant set) of vulnerable buildings. Another factor can be a sense that public support is lacking among decision makers, residents, or other stakeholders for mandatory requirements, perhaps because of local economic conditions that would make it difficult for owners to afford or get financing. The anticipated cost of the retrofit work can also come into play, as it can be more palatable to require owners to make investments that are a smaller share of the building’s overall value. Despite perceptions of politically feasibility and some measurable voluntary retrofit response, programs without mandates are almost always much less effective at actually reducing earthquake risk in the community in a significant way. Several factors appear to contribute to the handful of voluntary programs that have worked well. First and foremost, voluntary programs vary in the level of resources devoted, sustained effort, and set of complementary measures taken by the jurisdiction. The more dedicated a jurisdiction is to having a successful voluntary program, the more likely it is to have one. One tactic is to provide case by case assistance to owners in taking steps over time, a tactic sometimes used by jurisdictions with a small number of affected buildings. Another is to offer significant financial or policy incentives (examples of which are discussed below). On the public awareness front, providing educational materials that explain the risks to an owner and to the broader community and the benefits of protecting their financial investment may help. Another thing that can make voluntary programs more successful is to threaten to institute a mandatory program in the future. Historically, many jurisdictions did adopt a voluntary URM program first, and then shifted to mandates later on. In the past five years, this has also happened with soft-story wood frame policies in the case of Oakland, San Francisco, and Berkeley. An explicit multi-phased approach was particularly effective in Berkeley, where one fourth of building owners affected by a mandatory evaluation requirement invested in a voluntary retrofit within the first two years. Owner interviews showed this was partly because they wanted to get a head start on later mandates that appeared inevitable (Rabinovici, 2012). Seismic Risk Assessment Study December 21, 2016 Final Report Page 51 Disclosure Approaches Notification and many voluntary programs are based on the idea that information and communication by themselves can influence the opinions and actions of owners, renters, and buyers. Officially publicizing a city’s concerns about deficiencies of a specific building type could, for instance, change public opinion about the resale or rental value of listed properties, an owner’s eligibility for refinancing or future loan terms, or the cost of purchasing earthquake insurance. Jurisdictions have used a variety of techniques to motivate attention to seismic risk concerns. As discussed in the Task 2 report, mandatory disclosure at time of sale is a key part of state laws for pre-1960 homes in earthquake fault zones (CSSC, 2005). The most prominent policy is the state requirement for signage on all URM buildings. Similar signage has been required since 2007 on soft-story wood frame buildings in the City of Berkeley (Figure 4), and non-complying soft-story wood frame buildings in San Francisco Figure 5. In Oakland, Berkeley, and San Francisco tenants must be notified in writing, and official notices are recorded on the deed for all listed soft-story wood frame buildings. Seismic Risk Assessment Study December 21, 2016 Final Report Page 52 Figure 4: Photo of the warning sign mandated to be posted on buildings on the City of Berkeley’s Suspected Earthquake Hazard Building List (Photo: S. Rabinovici, 2011). Seismic Risk Assessment Study December 21, 2016 Final Report Page 53 Figure 5: Required placard for soft-story wood frame buildings that failed to comply on time with the mandatory screening phase of San Francisco's mandatory retrofit program. Seismic Risk Assessment Study December 21, 2016 Final Report Page 54 In the case of soft-story wood frame buildings, leading jurisdictions have also put a public, sometimes searchable list of affected properties on a jurisdiction’s website, based on the idea that renters should be entitled to easily accessible information before they sign a lease. Such lists include the street address and potentially also the compliance status of the property. Owner names or contact information are not given, although anyone could search for that information through public permit and property records. Table 4 describes each of these tools in more detail and gives examples of use as well as advantages and disadvantages. What all these measures have in common is that they make seismic risk issues more transparent and visible to affected members of the public. Disclosure is different than and goes beyond general public awareness. These measures are also meant to inform people about specific seismically vulnerable buildings, with the idea that it might change offering prices, mortgage availability and terms, rental or purchase decisions, or even whether someone wants to enter or stay very long in a building. In theory, as owners, tenants, bankers, and potential buyers become more informed, they can better incorporate seismic risk in their mitigation decisionmaking and assessment of property values. Evidence suggests that notification, notices, and public lists can and do influence beliefs and behavior. For example, some soft-story wood frame condominium owners in Berkeley reported difficulty refinancing (Rabinovici, 2012). Even perception of market awareness can change opinions, even if there is little to no documented impact. In Berkeley, some owners said the worried at first about reduced demand or market price for units in their buildings and this motivated them to retrofit; however, these same owners years later did not report experiencing any problems with tenant recruitment or lost rental income (Rabinovici, 2012). Earthquake warning signage was a prominent part of the state’s URM program requirements; however, there is little evidence to show that such warnings are effective. A study of California Proposition 61 carcinogen and reproductive health warnings suggests that signs are not very powerful and become less influential on behavior over time as people become used to them. Some building users may even be personally annoyed by warning signs, because it reminds them of a risk that they can personally do little about. Some owners of soft-story wood frame buildings in Berkeley Seismic Risk Assessment Study December 21, 2016 Final Report Page 55 reported having tenants that actively complained about or repeatedly ripped the required warning signs off the walls (Rabinovici, 2012). Seismic Risk Assessment Study December 21, 2016 Final Report Page 56 Table 4: Description of disclosure approaches used in local earthquake risk reduction programs. Name Description Examples of Use Advantages Costs, Issues or Concerns Mandatory Disclosure at Time of Sale Sellers of property are required to disclose features that could relate to earthquake performance. California Earthquake Fault Zone disclosure; Sellers of pre-1960 homes are required to fill out to the best of their knowledge and provide buyers with Residential Earthquake Hazards Report. Empowers buyers to be aware of any known existing hazard issues. Anecdotally, many buyers do not pay enough attention to these disclosures, which occur during emotional, busy decisionmaking periods. They may not seek expert information to interpret the reported information. It is also possible that sellers shirk on the disclosure requirements if buyers do not know that they are supposed to receive them. Difficult to enforce. Recorded Notice on Deed Jurisdictions can record on the property title or deed the fact that the building is subject to additional requirements related to its earthquake vulnerable status. For soft-story wood frame: Oakland, Berkeley, and San Francisco. Relatively low cost for jurisdictions to implement. Empowers buyers but also mortgage companies to be aware of any known existing hazard issues. Anecdotally, it is not clear how many buyers or mortgage companies pay attention to these notices. Such notices are primarily effective only at time of sale or refinance. Table 4 (continued) Seismic Risk Assessment Study December 21, 2016 Final Report Page 57 Name Description Examples of Use Advantages Costs, Issues or Concerns Public Listing of Affected Properties Jurisdictions that operate web sites to describe their programs can feature a full list of property addresses, potentially also including also the compliance status of the property. In general, owner names are not listed, though that information is available if a member of the public searched for it separately. For soft-story wood frame: Oakland, Berkeley, and San Francisco. Relatively low cost for jurisdictions to implement. Could be used by tenants and buyers when searching for properties, thus empowering well- informed market negotiations over pricing. Website information needs to be updated on a regular basis in order to be perceived as fair and useful. Public lists work better if the property addresses are searchable, rather than static (e.g., on a pdf). External Signage Jurisdictions that operate web sites to describe their programs can feature a full list of property addresses, potentially also including the compliance status of the property. Some lists are searchable, while others are static. California state requires a sign on all URM buildings. Similar signage has been required since 2007 on soft-story wood frame buildings in the City of Berkeley. Advocates argue that signs are justified based on the public's right to know. The physical presence and repeated viewing of signage may make the issue more salient for visitors, employees, lease holders, and owners alike. Owners may view the signs as stigmatizing or threatening to property value or business revenues, but anecdotally, it is not clear how much visitors, employees, residents, and other users of a building pay attention to signage when entering or leaving a property. Table 4 (continued) Seismic Risk Assessment Study December 21, 2016 Final Report Page 58 Name Description Examples of Use Advantages Costs, Issues or Concerns Tenant Notification Owners are required to present straightforward, standardized information about the listed status of the property. Some jurisdictions require proof of notification (e.g., tenant signature) to be returned and kept on file with the city. For soft-story wood frame: Oakland, Berkeley, and San Francisco. Tenant notification may be more influential than signage because it is personalized and the information is delivered at a useful time in that person's decision process. Advocates claim that tenant notification is justified based on the public's right to know. To be effective, tenant notification should be required to occur well before the potential tenant is ready to sign the lease. Earthquake Performance Rating Systems Owners can be either encouraged or required to have their building rated on a standardized scale that classifies expected building performance in an earthquake in an easier to understand format, for instance from one to five stars. Viable rating systems exist for many building types. The City of Los Angeles in 2015 officially launched a voluntary effort to encourage owners to rate their properties using the US Resiliency Council system and pledged to rate its own public buildings as well. Rating system use is common for institutions like universities and hospitals. Mechanisms for implementing performance ratings for commercial use have recently matured and are now viable. Ratings have the potential to inform owner, renter and buyer decisions, creating a market effect. Obtaining a rating potentially adds cost to a design project. Ratings systems such as USRC’s are relatively new and not yet widely implemented. Seismic Risk Assessment Study December 21, 2016 Final Report Page 59 An advantage of disclosure measures is they tend to be relatively inexpensive for jurisdictions to administer. Up to date website posting of the list of affected properties and their compliance status encourages people to visit the site as needed over time, people see signs every time they enter or exit, and properties may exchange hands many times. Eventually, a tipping point in community awareness and opinion about a class of properties can occur, as it did in the case of Berkeley for soft-story wood frame buildings. The use of positive disclosure remains an untapped potential influence on market value of retrofitted properties as well as owners’ retrofit decisions. This review did not identify any city programs that have taken the positive approach of recognizing or rewarding owners or announcing buildings that have been retrofit. One recent development is the existence of viable earthquake rating systems. In November 2015, the non-profit US Resiliency Council30 launched a non-profit credentialing and verification service through which owners can obtain externally checked, state-of-the-art assessment of the expected safety levels, repair costs, and time to regain function for their property. USRC ratings have the potential to play the same kind of role that the US Green Building Council did in promoting sustainable design, both for new construction and for retrofits. USRC’s system has already been adopted one California jurisdiction’s policy. Los Angeles Mayor Eric Garcetti cited USRC ratings in that city’s Resilience by Design report (City of Los Angeles, 2015), asking building owners to voluntarily use it, pledging to educate the public about seismic performance rating systems and how the information can be used, and announcing the intention to use it or some similar system to rate all city-owned buildings. Mandatory Screening Screening programs help jurisdictions collect more information about targeted potentially vulnerable buildings in a community, usually as a first step to later more stringent requirements for the subset that are found to have features indicating significant deficiencies. With relatively low cost and difficulty for owners, the jurisdiction can both make the issue visible and filter out properties that do not meet the eligibility or targeting criteria, thereby reducing the burdensome handling of errors and omission at a later stage. They also help jurisdictions determine the overall scope of the problem—how many buildings exist that have certain risk characteristics and how significant of a threat they pose in aggregate. This can help build the case for further legislation. 30 The organization’s website is: www.usrc.org (Accessed April 13, 2016). Seismic Risk Assessment Study December 21, 2016 Final Report Page 60 For soft-story wood frame buildings, Oakland was a pioneer of the mandatory screening approach. An inventory of multifamily apartment buildings was created in 2008 with the help of volunteers and non-engineers under a contract with ABAG. This survey identified 24,273 residential units in 1,479 buildings with five or more units, between two and seven stories, built prior to 1991, that had wide open spaces for parking or commercial uses on the ground floor (ABAG, 2014). Spot testing suggested the list might have error rates that could potentially undermine future program effectiveness, and might be politically unacceptable (personal communication, Jeannie Perkins, 2008). Therefore, in 2009 the City passed ordinance Number 12966 which declared these buildings “potential soft-story buildings” and mandated submittal of a Level 1 Screening–Non-Engineered Analysis. The screening had to be performed by a registered design professional, licensed contractor or certified inspector, to provide some assurance of accuracy regarding features that might related to risk. Anecdotally, the cost to owners for this was generally around $200 to $500. This can be summarized as a rule-in screening approach. Persons involved with analyzing Oakland’s program (personal communication, Danielle Hutchings-Mieler, 2011) concluded that many owners were confused, compliance was lower than hoped, and exemptions may have been given without adequate quality control of the reported data. This later contributed to the decision to incorporate mandatory evaluation phase when the city of Oakland was ready to move towards a mandatory retrofit program. In other words, a less than satisfactory implementation of a screening phase can slow down progress towards and increase the effort required in future retrofit programming. In its approach to soft-story wood frame buildings, San Francisco opted for a screening phase to weed out obviously non-affected properties, for instance those misidentified as having the correct number of units, stories, or first floor uses (primarily focusing on ruling out inappropriately included properties). Similar to Oakland, the screening had to be performed by a registered design professional, such as a licensed contractor, engineer, or architect. Compliance in filing screening forms by the initial deadline was 98%, a success which was helped by a suite of outreach activities including four waves of post card reminders, a retrofit fair, a weekly updated website, an advisory group process, and multiple public meetings. The compliance postcards used took advantage of real-time information sharing to “nudge” owners to respond, such as mentioning how many other owners had already taken action by that point (see Figure 6). Seismic Risk Assessment Study December 21, 2016 Final Report Page 61 Seismic Risk Assessment Study December 21, 2016 Final Report Page 62 Figure 6: Front and back of a compliance reminder postcard sent to affected owners in the City of San Francisco’s soft-story wood frame program. Mandatory Evaluation In the 1980s, Palo Alto was an early innovator with the technique of requiring owners of certain buildings in a community to file a formal engineering evaluation (Herman et. al., 1990). Because a licensed engineer (or structural engineer) must perform this work, such evaluations are approximately an order of magnitude more expensive than screenings. Evaluation costs for soft-story wood frame buildings in Berkeley, for example, were approximately $2,000 to $5,000 (Rabinovici, 2012). However, evaluation costs may vary substantially for other building types that are more difficult to assess, in other jurisdictions, and/or where evaluation requirements are more extensive or complex. Evaluation programs are costlier for jurisdictions to administrate than screening programs for a variety of reasons, but provide several advantages. Jurisdictions typically give owners more time to comply longer, owners need more guidance on how to comply, and there is increased need for processing time and more qualified reviewer labor. In Berkeley, report review was contracted out to plan checkers for a flat fee of $583 per evaluation report, and this did not cover jurisdiction staff time. On the benefits side, evaluations offer greater hope of achieving tangible risk reduction. As noted, a remarkable one in four soft-story wood frame building owners voluntarily retrofit in the wake of mandatory evaluation policy implementation in Berkeley, which meant over 2,000 of its residents now live in buildings that likely would not have been retrofitted otherwise. Interviews with soft-story wood frame owners in Berkeley also showed that many considered mandatory evaluation more fair than a voluntary retrofit program because it “leveled the playing field” (Rabinovici, 2012). Rather than having retrofit practices in their community determined ad hoc, all owners of similar properties were now being treated alike. However, the benefits of mandatory evaluation are undeniably uncertain and dependent on whether community circumstances are conducive to create a significant voluntary retrofit effect (Figure 7). Seismic Risk Assessment Study December 21, 2016 Final Report Page 63 Figure 7: Graph showing a seven-fold increase in permit applications in the four years immediately following passage of Berkeley’s 2005 mandatory evaluation law for soft-story wood frame buildings. Mandatory Retrofit Through California’s URM law, hospital, and school programs as well as soft-story wood frame buildings at the local scale, there is clear precedent for imposing earthquake retrofit work to be done for certain buildings. This is the most effective type of program for ensuring that on the ground risk reduction will be done. As discussed in the Task 2 report, on average over four times as many URM building cases have been retrofit in California in mandatory programs (70%) compared to voluntary ones (16%). However, because mandatory programs require all buildings to be addressed, owners with the most marginal properties cannot avoid taking action, in some cases leading to higher demolition rates (Comerio, 1992). In the case of URM buildings, mandatory retrofit programs did have higher demolition rates than voluntary programs, 17% compared to 8% respectively (CSSC, Status of the Unreinforced Masonry Building Law, 2006). Depending on the program timeline, it may take years to decades for tangible risk reduction to be realized. Retrofit projects naturally occur in steps, and can only be carried out as quickly as Seismic Risk Assessment Study December 21, 2016 Final Report Page 64 financing, contracting, any tenant relocation, or construction logistics allow. Thus, compliance periods for mandatory retrofit programs need to be longer than for mandatory screening or evaluation programs. For URM buildings, many jurisdictions tended to set deadlines of ten years or more, followed by generous extensions. For soft-story wood frame programs, jurisdictions have given owners one to three years for first steps such as appeals, hiring an engineer, complete an acceptable engineering report, or submit a permit application and retrofit plan. Following that, owners are typically given another one to three years to complete construction (see Table 3), in part to secure financing, time to work around planned vacancies, and for adequate design. Longer timelines or exemptions can be offered for complex buildings that may require costlier or innovative engineering solutions (for instance, historic properties). Again, this is where phasing or tiers can be helpful. Another difficult aspect of retrofit programs (even voluntary ones) is that jurisdictions need to set specific expectations for what constitutes an acceptable retrofit. Jurisdictions have handled this in a variety of ways. Retrofit ordinances typically directly reference one or more particular standards (or equivalent criteria). The table of soft-story wood frame programs (Table 3) shows that five or more standards have been referenced recently and several jurisdictions reference more than one, which can increase compliance ambiguity and the level of reviewer skill required but also an engineer’s discretion to use the one most appropriate for their client’s situation. Also at issue is how much and how far a building’s vulnerabilities should be retrofit. For instance, in the case of soft-story wood frame buildings, a retrofit can be designed to address only the first story weaknesses, rather than all seismic vulnerabilities that are identified. Jurisdictions such as San Francisco and Berkeley have chosen this route, in part because it lessened political resistance to creating a mandate and addressed the most severe deficiencies. Other deficiencies above the first story may remain and may lead to damage in an earthquake. In the case of mandatory evaluation or retrofit programs, owners and their engineers will also need guidance about how to prepare an acceptable evaluation, and how to submit a concurrent retrofit permit application. Owners in Berkeley realized a major financial advantage to paying their engineer to do both an evaluation for the jurisdiction and a full set of retrofit plans at the same time (Rabinovici, 2012), so having clear retrofit standards in place already was a major boon to those owners. Seismic Risk Assessment Study December 21, 2016 Final Report Page 65 The potentially negative effects on public safety and on owners of choosing a longer compliance timeline should be noted. Earthquakes can occur at any time, so a program that offers longer compliance windows in effect allows people in the community to spend more time using and owning buildings that the jurisdiction has deemed unacceptable in the long run. Also, real liability consequences may exist for owners that delay in doing mandated retrofit work, even before an accepted compliance window has elapsed. A California Appellate court awarded $2 million to family members of two women who died in a URM collapse in the 2003 San Simeon earthquake.31 In doing so, the court rejected the defendant’s claim that they had no duty to retrofit the building until 2018, the deadline established by the San Louis Obispo mandatory retrofit ordinance. Incentives To complement any of the above program formats, jurisdictions can offer either financing- or policy- oriented incentives. Many ways exist to encourage and ease the path for owners to complete either voluntary or required retrofit work, or even to help them submit timely screening forms or engineering reports. Financial incentives and tools provide monetary assistance, either directly to an owner or via the jurisdiction. Financial incentives include measures such as tax credits, tax rebates, grants, or fee waivers that make a retrofit less expensive to complete. Financial tools (e.g., special low-interest financing programs) provide a mechanism for an owner to obtain the necessary funding, potentially at lower cost or paid back in ways other than for a traditional loan. Policy incentives are meant to encourage private funding of mitigation, and include for example expedited review, exemptions, development bonuses, or technical assistance. These measures offer owners indirect but potentially valuable benefits as they take each mitigation steps. Figure 8 provides a summary list of potential incentive types, while Appendix C gives details about example uses, advantages, and disadvantages of each. A group of agencies completed an inventory of jurisdiction incentive strategies using a survey of California local governments in the mid-90s (ABAG, Seismic Retrofit Incentive Programs: A Handbook for Local Governments, 1996). Though outdated and only 35% of contacted jurisdictions participated, the report summarizes the types of URM and other earthquake programs that different jurisdictions adopted and the kinds of assistance that owners could receive. The researchers also did interviews to collect detailed information about fifteen illustrative cases at the time, including Palo Alto. 31See press coverage: http://calcoastnews.com/2010/06/court-finds-paso-robles-business-owners-liable-for-earthquake- deaths/ Accessed April 13, 2016. Seismic Risk Assessment Study December 21, 2016 Final Report Page 66 FINANCIAL TOOLS AND INCENTIVES (mechanisms that make financing more accessible or directly reduce project costs) POLICY INCENTIVES (mechanisms that deliver indirect benefits to owners) CO S T A N D I M P L E M E N T A T I O N D I F F I C U L T Y Hi g h e r L o w e r Waivers or Reductions of Building Department Fees Exemption from Future Retrofit Requirements Pass Through of Retrofit Costs to Tenants (for jurisdictions with rent control) Expedited Permits, Inspections, and Reviews Property-Assessed Financing Loans (PACE) Exemptions or Relief from Standards or Non-Conforming Conditions Subsidized or Special Term Loans Condominium Conversion Assistance Real Estate Transfer Tax Rebates Technical Assistance for Retrofit Projects Special District or Historic Designation Tax Reductions Zoning Incentives (e.g., relief from use restrictions) Tax Credits Transfer of Development Rights (TDR) Grants Density or Intensity Bonuses (e.g., Floor Area Bonus) General Obligation or Special Purpose Bonds Figure 8: Types of financial incentives and tools as well as policy incentives that have been used in local earthquake risk reduction programs in California, in approximate order top to bottom from lowest to highest cost and difficulty of implementation. Several points stand out in the ABAG report regarding incentive use and effectiveness. First, most jurisdictions offer a number of different incentives, rather than just one approach. This makes sense Seismic Risk Assessment Study December 21, 2016 Final Report Page 67 because building and owner circumstances vary widely; what may help one owner might be irrelevant or inappropriate for another and vice versa. Second, jurisdictions have taken widely different approaches with incentives, from offering almost nothing to offering substantial loans and grants. Jurisdictions tend to come up with incentive offerings closely tailored to their own goals and circumstances, based on economic conditions, building stock vulnerabilities, political will, and other factors. As a result, there is no single best incentive package to offer. Another key point is that creation and operation of incentive programs is intense and must be locally customized. Extensive community education and involvement are required to assess needs, design and advertise the incentive offerings, and to help owners take advantage of them. Guiding community members through the mitigation process is time consuming and difficult, usually requiring at least one full time staff member who also has to coordinate with staff across several departments. That means the personalities, technical skills, and political savvy of the internal team will be critical, and likely variable over time, due to natural staff and political turnover issues. The effectiveness of different incentive approaches, individually or in packages, has not been systematically studied. Both ABAG and the San Francisco CAPSS project have produced high level lists of potential incentive tools (ABAG, 2014; Samant & Tobin, 2008) but do not specify which tools are being used where and to what effect. Many listed approaches are rarely or no longer being used. All the variety makes it difficult to draw overall conclusions as to which incentives have worked “best” where and why. 3. IMPLICATIONS AND POTENTIAL POLICY DIRECTIONS FOR PALO ALTO Palo Alto is a medium sized, compact city with a diverse population and vibrant local economy. Nested in the heart of Silicon Valley, the cost of living and development pressures are high, and space for growth is limited. A high degree of interconnectedness with surrounding communities and a dynamic natural environment is also evident. As a community, Palo Alto cannot ignore its proximity to several major faults and the fact that it has many different vulnerable building types. The estimated losses in a major event are significant. Fortunately, Palo Alto has a legacy of proactive policy leadership in addressing earthquake risks, and a relatively high degree of citizen and local government capacity. The potential benefits from retrofitting are large. City leaders, by investing this year in risk assessment and a policy development dialog, have demonstrated their capability and will to act. Seismic Risk Assessment Study December 21, 2016 Final Report Page 68 This review found no simple best local earthquake mitigation policy model for Palo Alto to follow. Each of the jurisdictions mentioned in this report has crafted, often over a decade or more, a unique package of measures suited to their own local economic, social, political, and risk realities. Palo Alto must do the same. In developing its own strategy, Palo Alto can learn from this variety among local mitigation programs. It can build on the successful framework of its own existing program while also combining and tailoring new elements that are working for other jurisdictions. Choosing Goals and Desired Outcomes One way to measure success is in relation to program goals and resource realities. From that standpoint, each of the programs mentioned in this report is successful to some degree. Some jurisdictions set out to do what they could with limited resources, progressing only the first steps of developing an earthquake mitigation program. The City of Richmond, for example, developed an inventory, hosted a community meeting, and notified owners as part of creating a very low cost voluntary approach to soft-story wood frame buildings. The good news is that by doing so, it achieved meaningful progress relative to jurisdictions that have done nothing. Public leaders and the broader community are more aware, city reputation and visibility have been enhanced, and city staff are now better connected to a network of local earthquake professionals that can help facilitate future action if and when that becomes possible. The bad news is that Richmond has been stymied so far by the departure of key staff, limited jurisdictional resources, and the limited resources of its soft-story wood frame building owners and tenants; a more aggressive retrofit program is not realistic until an outside source of funding is found. At the other extreme, a few leading jurisdictions set out to comprehensively assess earthquake vulnerabilities and risk reduction opportunities community-wide through a lengthy, relatively expensive, and collaboratively-informed processes. San Francisco and more recently Los Angeles are the most prominent users of this approach, producing in-depth reports and resilience plans intended to guide city efforts for decades. Importantly, these plans encompass many city activities and roles, types of buildings and building uses, different phases of the disaster cycle, and explicitly seek to connect earthquake mitigation efforts to a host of other community resilience concerns, from sea level rise to water supply reliability to telecommunications operations (Several leading local program models and planning resources for these types of efforts are introduced in Appendix D). In between are jurisdictions where program goals are either narrower in scope with more vigorous requirements (such as the City of Fremont’s mandatory retrofit program for soft-stories) or wider Seismic Risk Assessment Study December 21, 2016 Final Report Page 69 scope with less vigorous requirements (such as the City of Santa Monica, which mandates retrofits for soft-story wood frame buildings and nonductile older concrete structures but only when triggered by a substantial renovation). The City of Berkeley took a phased, relatively aggressive approach to soft-stories, but has yet to put in place a program to address the 50 or so tilt-up concrete structures it has identified. Oakland is also somewhat unique in being a larger city that has mandated soft-story retrofits without initially taking a comprehensive approach. However, both Berkeley and Oakland benefited first from substantial volunteer professional involvement and later from sizeable, multi-year Rockefeller Foundation 100 Resilient Cities grants. Through the early help of both volunteers and consultants, Berkeley and Oakland laid the groundwork for mandatory programs that likely helped to attract the additional philanthropic attention and assistance. Berkeley has now produced, and Oakland is on its way to producing, a comprehensive resilience assessment and plan similar to what was done by San Francisco and Los Angeles. In this light, Palo Alto is currently in the “middle” group in terms of its scope and requirements for seismic safety compared to other leading jurisdictions. Palo Alto set new policy precedents in the 1980s with its community engagement, mandatory evaluation, and voluntary retrofit programs for three different categories of structures. However, this only addressed a small subset of its overall vulnerable building stock. By investing in data collection and community discussions this year, Palo Alto is now poised to move forward into a new position of seismic policy leadership. It is critical to first clarify community values and goals before designing a program to try to achieve them. All stakeholders should be invited to participate in discussions of what matters most to the City and the people who live, work, and invest in it. Common broad goals include increased public safety, reduced private property damage, and reduced downtime and displacement of businesses, consumers, and residents. However, addressing of different building types may advance these goals to different degrees and with different levels of certainty and speed. For instance, addressing soft-story wood frame housing may have little direct benefit for local businesses but would reduce renter displacement. Retrofit of older concrete structures might address concerns about provision of basic services after an event, but would have little or no benefit for housing. If the goal is to achieve the greatest reduction in losses, Palo Alto should address building types known to be potentially hazardous that occur in large numbers. Once community discussions lead to a sense of priorities and preferences, trade-offs and alternatives for pursuing each goal can be understood and considered. Seismic Risk Assessment Study December 21, 2016 Final Report Page 70 Wherever Palo Alto chooses to focus, it should strategically combine policy features to promote risk reduction. As this report revealed, regardless of scope, the most effective programs use a package of measures to tip the balance away from the status quo by publicizing and increasing the consequences of not retrofitting while also publicizing, easing the costs, and increasing the benefits of retrofitting. Potential Policy Directions Coming out of this local program review is a list of alternative approaches for Palo Alto to consider: Option 1: Status Quo In this option, the existing ordinance with its mandatory evaluation, voluntary retrofit approach remains in place without changes. This covers 89 buildings and has three categories: Category I— unreinforced masonry (except for under 1,900 sf with 6 residents), Category II—built before 1/1/1935 with 100 or more occupants, and Category III—built before 8/1/1976 with 300 or more occupants. As of 12/9/14, City records indicated that sixty-six of the buildings had been either retrofit, demolished, planned to be demolished, or found exempt, while 23 remained unaddressed. Evaluation was mandatory, and owner funded but retrofit is voluntary. The list is publically available by request, but not advertised. Floor area ratio bonuses are (were) available. Option 2: Increase Scope, but Retrofit Remains Voluntary Additional categories of structures would be added to the mandatory evaluation requirements. Palo Alto can consider programs for soft-story wood frame buildings, older concrete buildings, older tilt-up buildings, and older steel moment frame buildings. Precedents exist for programs addressing each of these structural types that pose well-identified, publicly important risks. Completion of an evaluation report could be separated into different timelines, for instance three to ten years, depending on degree of hazard. Palo Alto could also use location, occupancy type, and/or number of occupants as criteria in defining the scope or compliance timelines. Option 3: Similar to Option 2, but Additional Disclosure Measures are Incorporated This option would be similar to Option 2, but the list of buildings and status could be prominently posted on City website, tenants could be notified, signage could be required, and/or a recorded notice could be added to the property title. These options enhance transparency with the public and reward owners that retrofit by increasing the perceived benefits of retrofitting among potential tenants and buyers. Relatively inexpensive measures like these have been shown to be effective in increasing public awareness and motivating greater consideration of earthquake risk in private decisionmaking, including voluntary retrofits. Seismic Risk Assessment Study December 21, 2016 Final Report Page 71 Option 4: Increase Scope, Some Categories are Voluntary and a Few Categories are Mandatory, with Enforcement by Trigger Threshold This option builds on Option 3, but retrofitting would be required for some building types at whenever future time a building is sold or undergoes substantial renovation above a set threshold. Option 5: Increase Scope, Some Categories are Voluntary and a Few Categories are Mandatory, with Enforcement by a Fixed Timeline This option would be similar to Option 4, but retrofitting is required according to a fixed timeline. Timelines and enforcement emphasis could vary depending on tiers or priority groupings to motivate prompt action for the most vulnerable or socially important structures. In some cases, longer time frames are adopted for some building types such as older concrete, to ease the burden on owners and allow for technical advancement in retrofit techniques. Option 6: Similar to Option 5, but More Categories are Mandatory This alternative is similar to Option 5, but retrofitting would be required for additional categories. Palo Alto can also make its programs more stringent over time. Explicit phasing has been successful in jurisdictions like Berkeley and San Francisco for generating political consensus and enhancing administrative feasibility. This array of options can be also be shown in diagram format (Figure 9), which shows how a number of jurisdictions in this report have positioned themselves in terms of the relative strength of their requirements and the number and scope of the building types addressed. Seismic Risk Assessment Study December 21, 2016 Final Report Page 72 Figure 9: Diagram showing alternative policy directions for Palo Alto in the context of other jurisdictional earthquake mitigation programs. When considering options, Palo Also leaders and community members should keep in mind the following additional findings from this review:  Mandating retrofit is the surest way to achieve risk reduction.  Jurisdictions are increasingly using disclosure measures to motivate retrofits in both voluntary and mandatory programs, and such approaches have been shown to be powerful and relatively low cost to implement.  Many mandatory programs use intermediate mandatory screening and/or evaluation phases to better gauge the risk and filter out properties that need not comply before implementing retrofit requirements.  Fixed timelines allow a jurisdiction to prioritize and control the pace of risk reduction, provide a predictable planning horizon for owners. Seismic Risk Assessment Study December 21, 2016 Final Report Page 73 Incentive Options and Considerations By offering a strategic set of incentives and devoting a steady, adequate program budget, Palo Alto can create a program that eases the financial and logistical burdens on owners and provides adequate technical assistance to support retrofit project completion. Small incentives are meaningful and helpful to owners, while larger incentives may be critical for a subset of owners that face particularly complex or costly projects. Palo Alto has several traits that could make policy incentives (non-monetary assistance) particularly effective. One is a relatively manageable number of affected buildings for some building types. This means city staff might be able to provide high quality assistance to owners in complying and taking advantage of any special programs. Palo Alto is a highly desirable locale with a highly educated, real estate savvy population, and robust real estate market. Palo Alto has experience using policy incentives in the past, so staff and many owners are familiar with them. Despite limited data on their use or effectiveness, incentives can be politically important and provide a variety of benefits. Below are some specific ways incentives could play a role in Palo Alto’s future program and some steps that Palo Alto can take to create a package of incentives effectively tailored to its own goals and circumstances.  It is good to offer small incentives to all owners because it fosters positive interest in the program and builds community good will. Modest incentives, on the order of a few hundred dollars, help acknowledge the public value that is being created by the efforts undertaken by owners. For example, offering fee waivers is a gesture that owners will appreciate, if not expect. Expedited permitting is likely to be viewed similarly, because time equates with money. Policy incentives tend to be in the direct control of the City to implement, and are often cost-effective and very helpful for owners in smoothing the path and easing the hassle of doing retrofit work.  Incentives are especially important to the outcomes of voluntary programs. Incentives play slightly different roles in mandatory compared to voluntary programs. In the case of mandated upgrades, incentives essentially ease the burden of doing what has to be done or to make it happen more quickly. In the case of, voluntary programs, the goal of incentives is to motivate retrofit work to occur that might not have otherwise. In this way, incentive offerings are more critical to the degree of risk reduction achieved in the case of voluntary programs, and to political viability, perceptions of program fairness, and speed of risk reduction achieved in the case of mandatory programs. Bottom line, in the case of URMs, a small number of voluntary programs with substantial incentives have achieved similar Seismic Risk Assessment Study December 21, 2016 Final Report Page 74 success compared to mandatory programs. With soft-story wood frame buildings, voluntary programs in the absence of incentives alone have not been enough to motivate retrofit work to be done. An exception is for owners in financial hardship, where incentives are most meaningful in mandatory programs.  Design the incentive strategy to match the circumstances of the locally targeted building stock. FAR bonuses are likely irrelevant for soft-story wood frame buildings which are seldom renovated to include more units or changes of use, but relaxing of parking requirements or special provisions for condominiums may help. Mixed-used and historic buildings may require deeper financial assistance when they face high costs associated with retrofitting due to complex design issues, ADA compliance, and imposed restrictions on changes in use.  Take time to assess actual need for incentives and the types that will make the most difference to affected Palo Alto owners. Larger policy incentives like FAR bonuses can be very effective, especially in higher income, higher growth communities like Palo Alto. In contrast, larger financial incentives can be difficult to orchestrate and have not always been as necessary or useful as hoped. Surprisingly, jurisdictions have sometimes found they have to “sell” incentives programs to owners. Certain strategies tend to be very challenging and costly to get the incentive to work compared to the amount of good they seem to do. Such may be the case with PACE financing,32 as seen through the experiences of San Francisco and Berkeley for soft-story wood frame buildings. When private market capital is affordable, loan programs may not be needed or utilized. Use of larger, more complex incentive instruments in general increases the amount of hand holding that is needed and the amount of time until retrofits are completed.  Consider offering larger incentives to only those owners or properties that qualify or meet certain social importance or hardship criteria. Interviews in Berkeley (Rabinovici 2012) showed that soft-story wood frame building owners were open to the possibility of need- based financial help. They did not want financing programs to reward ignorance or risky business practices, but as long as the criteria are clear and the process is fair and transparent, many expressed support for programs that would help fellow owners that are truly burdened or in need. There was also support for using social or resilience importance as part of the criteria for special financing eligibility. 32 Information about San Francisco’s PACE program can be found at: http://www.sfgov.org/esip/seismic-retrofit-financing Accessed April 11, 2016. Information about Berkeley’s PACE programs can be found at: http://www.ci.berkeley.ca.us/PACE/ (Accessed May 2, 2016.) Seismic Risk Assessment Study December 21, 2016 Final Report Page 75  Integrate incentives as seamlessly as possible into the overall compliance process. Incentives work best when they are delivered in a timely way, right when people are already making important property or financial decisions. One notable example is the City of Berkeley’s transfer tax rebate for single family home seismic improvements, which is available retroactively two years before through two years after time of sale. Another is Palo Alto’s floor area ratio (FAR) bonus for retrofit of designated vulnerable structures, which allowed owners the chance to plan in additional space at the same time a retrofit is being designed.  Beyond money, it will be important to offer technical assistance, and this can be very helpful and even critical for some owners and engineers. Retrofitting is not a simple process, and ironically it can become even harder for an owner if it happens as part of a jurisdictional program that requires or is intended to encourage it. Obtaining financing, especially through special programs, may also require intense staff effort.  Beware of the timing and costs of seeking public support for new bond financing. In Berkeley, attempts were made to make a pool of funds available to owners through a transfer tax increase measure on the November 2002 ballot, but it failed to get the required two thirds vote. Participants in retrospect considered the campaign poorly run, but the state of the local economy probably played more of a role than any decrease in support for mandatory retrofit in concept.  Consider creation of formal cost-sharing arrangements between tenants and owners. Part of the financial equation surrounding any upgrade work is the owner’s ability to capitalize on the value added to the structure. In the case of rent control, the rate for pass through of capital improvements is a matter of law. Jurisdictions like Oakland, Berkeley, and San Francisco have negotiated cost-sharing arrangements ranging from 50 to 100% that allow owners to increase rents up to a certain percent of the retrofit cost, over a specified time period (usually 10 years). Even though Palo Alto does not have a rent control ordinance, it could establish a permitted amortization schedule into any new retrofit law, which could lessen the impact for tenants of any resulting rent increases. Disclosure Measure Options With relatively modest expense for a jurisdiction, disclosure measures can inform the populace and leverage social and market awareness to amplify program effectiveness. In effect, signage, tenant notification, internet lists, and other disclosure tactics make more transparent both useful risk information and the policies a city is using to address risk. Seismic Risk Assessment Study December 21, 2016 Final Report Page 76 Public perception of disclosure policies has been on balance positive but not without critique. On the one hand, revealing property addresses that are subject to an ordinance can be thought of as making more accessible information that is already public. It spares all parties of going through the time and hassle of formal information requests. It is also consistent with a philosophy of the public’s right to know, and may be legally protective for both owners and jurisdictions against accusations that important risk information is being held back. On the other hand, the media has at times portrayed signage as a shaming device, though this may depend on a sign or placard’s particular graphic design and wording. Soft-story wood frame owners in Berkeley described the overall suite of disclosure measures imposed there as a “scarlet letter.” San Francisco included disclosure practices as part of its first “nudging” phase in their program plan. In essence, before and in complement to implementing mandates, San Francisco’s plan called for trying to increase understanding in the real estate market empower tenants, buyers, and even owners (who could now more credibly and prominently claim credit for early compliance, retrofitting ahead of schedule, or voluntarily taking extra steps). Evidence about the effectiveness of disclosure, either together with other policy requirements or separately, is quite limited. In at least one case, voluntary retrofit programs combined with disclosure measures have achieved significant risk reduction. Berkeley’s mandatory soft-story evaluation program had several prominent disclosure features and resulted in a 25% voluntary retrofit rate in the first four years (Rabinovici, 2012). Seismic Risk Assessment Study December 21, 2016 Final Report Page 77 4. REFERENCES AND RESOURCES ABAG. (1996). Seismic Retrofit Incentive Programs: A Handbook for Local Governments. ABAG. (1999). Preventing the Nightmare. Oakland, CA. ABAG. (2014). Soft-Story Housing Improvement Plan for the Cit of Oakland. Oakland. Retrieved from http://resilience.abag.ca.gov/wp-content/documents/OaklandSoftStoryReport_102914.pdf ATC. (2010). Here Today—Here Tomorrow: The Road to Earthquake Resilience in San Francisco. Community Action Plan for Seismic Safety, Redwood City. Retrieved from http://sfgov.org/esip/sites/default/files/FileCenter/Documents/9757-atc522.pdf ATC. (2012). ATC 78-1: Evaluation of the Methodology to Select and Prioritize Collapse Indicators in Older Concrete Buildings. Redwood City, CA. Bonowitz, D. (2012). Soft-Story Risk Reduction: Lessons from the Berkeley Data. EERI, Oakland, CA. Bonowitz, D., & Rabinovici, S. (2012). Soft-Story Risk Reduction: Lessons from the Berkeley Data. EERI, Oakland, CA. Chakos, A. P. (2002). Making It Work in Berkeley: Investing in Community Sustainability. Natural Hazards Review, 3(2), 55-67. City of Los Angeles. (2015). Resilience by Design. Los Angeles. Comerio, M. (1992). Impacts of the Los Angeles Retrofit Ordinance on Residential Buildings. Earthquake Spectra, 8(1), 9-94. Concrete Coalition. (2011). The Concrete Coalition and the California Inventory Project: An Estimate of the Number of Pre-1980 Concrete Buildings in the State. CSSC. (2005). Homeowner’s Guide to Earthquake Safety . Sacramento, CA. CSSC. (2006). Status of the Unreinforced Masonry Building Law. California Seismic Safety Commission, Sacramento. FEMA. (2009). Unreinforced Masonry Buildings and Earthquakes: Developing Successful Risk Reduction Programs. Herman, F., Russell, J., Scott, S., & Sharpe, R. (1990). Earthquake Hazard Identification and Voluntary Mitigation: Palo Alto's City Ordinance. California Seismic Safety Commission 90-05, Sacramento, CA. NIST. (2015). Community Resilience Planning Guide Volume 1. National Institute of Building Sciences. Retrieved from http://www.nist.gov/el/resilience/upload/NIST-SP-1190v1.pdf Olson, R. S. (1999). Some Buildings Just Can't Dance: Politics, Life Safety, and Disaster. Stamford, CN : Jai Press Inc. Seismic Risk Assessment Study December 21, 2016 Final Report Page 78 Rabinovici, S. (2012). Motivating Private Behavior with Public Programs: Insights from a Local Earthquake Mitigation Ordinance. Berkeley, CA: University of California Berkeley. Samant, L., & Tobin, T. (2008). Memo to the Advisory Committee on Incentives to Encourage Seismic Retrofits: Options for San Francisco”. San Francisco, CA. 5 Sept. 2008. San Francisco, CA: Community Action Plan for Seismic Safety. SF ESIP. (2011). Community Action Plan for Seismic Safety, San Francisco Earthquake Implementation Plan (ESIP) Workplan 2012-2042. San Francisco, CA. SPUR. (2008). The Resilient City: Defining What San Francisco Needs from Its Urban Resilience Strategy. San Francisco, CA. SPUR. (2011). Safe Enough to Stay: What will it take for San Franciscans to live safely in their homes after an earthquake? San Francisco, CA. Seismic Risk Assessment Study December 21, 2016 Final Report Page 79 CHAPTER IV. BUILDING INVENTORY FOR LOSS ESTIMATE One of the first steps in the study was to develop a digital inventory of buildings in Palo Alto that includes all the information necessary to build the exposure model for the loss estimate. Information sources used to develop the inventory included county tax assessor files, City GIS files, a survey done by the Palo Alto Fire Department and San Jose State University of soft-story wood frame buildings, field notes from the building department files of selected buildings when the 1986 ordinance was being developed, Google Earth and Street View visual reviews, and an extensive sidewalk survey. The Santa Clara County tax assessor’s files, which included 21,187 parcels of real estate in the City of Palo Alto, were used as a starting point to develop the building inventory. The 15,198 parcels designated as single family or two-family residences were first removed, as these were excluded from the study, leaving 5,989 parcels of interest. A parcel is not always equivalent to a building. On one hand, there are some sites where there is one owner and one tax parcel, but there are multiple buildings. Sometimes, it is easy to distinguish the separate buildings from an application like Google Earth or Street View as there is sufficient separation between the structures; in other cases, a field survey is needed when the seismic separation is small (or not present). On the other hand, condominiums can be a single structure, but have multiple owners and thus multiple separate taxpayers and parcel numbers. For the 3,630 residential parcels with three or more units, we found 1,324 distinct buildings. Of the remaining 5,989 – 3,630 = 2,359 tax parcels, we found that 961 tax parcels were identified as “possessory interest.” They are used at the city-owned Palo Alto airport for administration of property taxes for concessionaires and for other purposes at other locations in the city, and they do not represent buildings. When they were removed, there were 1,398 non-residential buildings. They were combined with the 1,324 residential buildings for a total of 2,722 buildings. The assessor’s data typically included parcel number (APN), year built, occupancy type, square footage, and number of stories. These data were supplemented with ArcGIS shape files of building and parcel outline from City GIS files, providing the geospatial location of each parcel (by latitude/longitude). In addition to this information, the exposure model requires basic data on structural system needed to classify each building into a Hazus Model Building Type. For some buildings, this information was Seismic Risk Assessment Study December 21, 2016 Final Report Page 80 available from earlier inventory efforts, including a select set of inventory forms used in developing the current seismic mitigation program, and a survey by SJSU and the City’s Fire Department of soft-story wood frame buildings. However, for many buildings no structural system could be assigned based on available records. The field survey was used to assign the seismic force-resisting system (using the basic FEMA Model Building Type classification system), and to confirm and supplement information acquired from the digital files for number of stories, occupancy (using the Hazus occupancy categories), building area, and year built. In addition, buildings were surveyed for vertical and plan irregularities. After the sidewalk surveys and additional quality assurance refinements, we identified a total of 2,632 buildings in the study group for Palo Alto. This included 66 buildings subject to Palo Alto’s current seismic mitigation ordinance, because 23 of the original 89 buildings subject to the ordinance have been demolished. Not all buildings were field surveyed and not all key attributes needed for loss estimation were available for all buildings. For buildings that were not surveyed and were missing information, the missing attributes were developed using statistical comparisons with buildings that were surveyed on a sector by sector basis. A multi-step procedure was developed to fill in other missing attributes based on the best available comparative information. For example, buildings with missing occupancy and number of stories were assigned occupancies and number of stories with the same distribution of occupancies for surveyed buildings in that sector. For buildings with missing square footage data, the median values in the sector for residential and non-residential buildings were used. In assigning missing seismic force-resisting system information and year built, some rules were applied based on typical building practices. As a result, while the information for buildings that were not surveyed may not be fully accurate at the individual building level, the overall data set is seen as sufficiently representative for the type of loss estimates used in the project and relative comparisons made between different building types that are discussed ahead. In addition to the information discussed above, a replacement cost had to be established for each building. Standard 2014 RS Means Replacement Cost values included in the loss estimation software (Hazus) used were reviewed as a starting point, but not considered representative for Palo Alto. R+C and Vanir Construction Management prepared adjustments to RS Means values to capture 2016 data and local factors. These were reviewed by a task group of the City’s project Advisory Group that included local design professionals and developers familiar with the local cost climate. The group recommended an increase of the values in general, and identified target values for selected common occupancies. Based on these recommendations, R+C updated the values and Vanir reviewed them and revised the non-targeted occupancies for estimating consistency. The resulting replacement costs are shown in Table 5, and were used in the loss calculations. It is noted that resulting costs are 1.7-2.6 Seismic Risk Assessment Study December 21, 2016 Final Report Page 81 times the RS Means-based Hazus default values (2014 cost data), and that costs are intended to be representative of averages across the town. Table 5: Average $/SF replacement building cost by Hazus occupancy class. Occupancy Class RS Means 2014 Average Palo Alto Cost1 [$/SF] Market Factor for Palo Alto Escalation Factor from 2014 costs to 2016 costs Demo & Minimal Sitework (5’ around building) [$/SF] Soft Cost Premium2 Average 2016 Palo Alto Cost w/ Soft Costs [$/SF] Multiplier (Replaced with Soft Costs / RS Means) Multi Family, duplex $130.75 40% 10% $17.50 20% $263 2.01 Multi Family, triplex/quad $114.94 40% 10% $17.50 20% $233 2.03 Multi Family, 5-9 units $206.41 40% 10% $17.50 20% $402 1.95 Multi Family, 10-19 units $194.12 40% 10% $17.50 20% $380 1.96 Multi Family, 20-49 units $212.26 40% 10% $17.50 20% $413 1.95 Multi Family, 50+ units $199.90 40% 10% $17.50 20% $390 1.95 Temporary Lodging $217.83 40% 10% $17.50 20% $424 1.94 Institutional Dormitory $234.44 50% 14% $25.00 20% $511 2.18 Nursing Homes $238.07 50% 12% $25.00 20% $510 2.14 Retail Trade $121.66 80% 10% $17.50 20% $310 2.55 Wholesale Trade $118.13 60% 10% $17.50 20% $$270 2.29 Personal & Repair Services $143.47 60% 10% $17.50 20% $324 2.26 Professional/Technical/ Business Services $194.52 65% 12% $17.50 20% $452 2.33 Banks $281.88 40% 12% $25.00 20% $560 1.99 Hospitals $372.59 50% 14% $35.00 20% $807 2.16 Medical Office/Clinics $267.85 20% 10% $17.50 20% $445 1.66 Entertainment/Recreation $248.61 25% 12% $25.00 20% $448 1.80 Theaters $186.45 35% 12% $25.00 20% $368 1.98 Parking $84.59 20% 10% $17.50 20% $155 1.83 Heavy $144.71 25% 10% $17.50 20% $260 1.80 Light $118.13 25% 10% $17.50 20% $216 1.83 Food/Drugs/Chemicals $229.48 30% 12% $17.50 20% $422 1.84 Metal/Minerals Processing $229.48 30% 12% $17.50 20% $422 1.84 High Technology $229.48 40% 14% $17.50 20% $461 2.01 Seismic Risk Assessment Study December 21, 2016 Final Report Page 82 Table 5: Average $/SF replacement building cost by Hazus occupancy class. Occupancy Class RS Means 2014 Average Palo Alto Cost1 [$/SF] Market Factor for Palo Alto Escalation Factor from 2014 costs to 2016 costs Demo & Minimal Sitework (5’ around building) [$/SF] Soft Cost Premium2 Average 2016 Palo Alto Cost w/ Soft Costs [$/SF] Multiplier (Replaced with Soft Costs / RS Means) Construction $118.13 30% 10% $17.50 20% $224 1.89 Church $118.13 50% 12% $25.00 20% $268 2.27 Agriculture $199.08 10% 12% $17.50 20% $315 1.58 General Services $152.63 40% 10% $17.50 35% $341 2.23 Emergency Response $259.52 40% 14% $25.00 35% $593 2.28 Schools/Libraries $193.00 40% 12% $25.00 35% $442 2.29 Colleges/Universities $214.91 60% 12% $25.00 35% $554 2.58 Notes: 1. RS Means average cost includes RS Means default location factors to adjust national average to Palo Alto of 15% for residential and 11% for commercial. 2. Soft costs include architect and engineer design fees, testing and inspection, utility connection fee, permits, and an allowance for owner change order contingency. 3. Costs are intended to be representative of average in Palo Alto across the town, including downtown areas together with other areas in the city. 4. Costs were previously prepared following a 3/7/2016 discussion with the Palo Alto Seismic Risk Program Advisory Group Technical Advisory Committee. Table includes minor updates based on internal review between Rutherford + Chekene and Vanir Construction Management to achieve improved relative ratios between different occupancy types. Table 6 shows how the number and aggregate value of Palo Alto’s buildings is distributed by structural system, using the FEMA Model Building Type classification system for structural system. The table is sorted by aggregate building value. Wood frame buildings make up about 60% of the number of buildings, and represent 35% of the total value. About 20% of the buildings are concrete, and they represent over 40% of the total value. Of the remaining 20%, about two-thirds are masonry buildings, and one-third steel. However, the steel buildings represent about twice the value of the masonry buildings. Seismic Risk Assessment Study December 21, 2016 Final Report Page 83 Table 6: Distribution of number of buildings, building area, and building value by Model Building Type. Model Building Type Number of Buildings Aggregate Square Feet (1,000) Aggregate Building Value ($M) Concrete shear wall (C2) 318 9,699 4,082 Concrete tilt-up (PC1) 242 8,054 3,368 Wood frame larger residential (W1A) 331 8,403 3,232 Wood frame commercial/industrial (W2) 307 6,209 2,369 Steel braced frame (S2) 50 3,116 1,391 Wood frame smaller residential (W1) 898 3,821 1,278 Steel moment frame (S1) 75 3,005 1,242 Reinforced masonry, wood floor (RM1) 285 2,806 1,209 Reinforced masonry, concrete floor (RM2) 30 574 211 Steel light metal frame (S3) 41 533 177 Precast concrete frame (PC2) 5 334 125 Concrete moment frame (C1) 18 325 117 Steel frame with concrete shear walls (S4) 13 162 72 Unreinforced masonry bearing wall (URM) 9 274 15 Concrete with masonry infill (C3) 8 26 8 Steel frame with masonry infill (S5) 2 6 3 Totals 2,632 47,346 18,899 The study group can be further divided into age groups separated by significant milestones in building code implementation. The following age groups were selected: pre-1927, 1927-1961, 1962-1976, 1977- 1997, and 1998 until now. The milestones reflected include the first earthquake code in Palo Alto in 1926, adoption of the 1961 Uniform Building Code (UBC) and associated higher forces, code changes in the 1976 UBC following the 1971 San Fernando Earthquake, and code changes in the 1998 UBC following the 1994 Northridge Earthquake. Figure 10 shows a histogram of the year built of the buildings in the study group. Seismic Risk Assessment Study December 21, 2016 Final Report Page 84 Figure 10: Distribution of year built of buildings in study group with significant changes in the building design practice. Seismic Risk Assessment Study December 21, 2016 Final Report Page 85 CHAPTER V. VULNERABLE BUILDING CATEGORIES One of the important tasks in the risk assessment study was to identify potentially vulnerable building categories specific to Palo Alto using the building inventory that was developed early in the risk assessment study. Potentially vulnerable structural system types were identified based on experience in past earthquake events, knowledge of milestones when improvements in seismic code requirements were made in Palo Alto, rankings in prominent seismic risk assessment tools such as the 2015 edition of FEMA P-154 Rapid Visual Screening of Buildings for Potential Seismic Hazards, results from past seismic risk assessment studies in California communities, and engineering judgment. The building categories were then evaluated in analytical loss estimate studies described ahead which helped to confirm the selected categories as appropriate for Palo Alto. Key building vulnerability metrics include the risk of deaths and injuries, the cost of damage, and the extent of downtime or loss of use. Buildings in the identified vulnerable building categories tend to perform poorly with respect to all three of these metrics though the relative degree of vulnerability to each factor varies. Community resilience is improved if residents have homes that remain usable after an earthquake event, and if businesses can still operate. From a program perspective, the consultant team and Advisory Group believe the greatest reduction in losses and the largest benefit to community resilience will come from seismically retrofitting building types know to be both potentially hazardous and present in significant numbers in Palo Alto. In addition to the three categories already in Palo Alto’s seismic hazard identification ordinance (Categories I, II, and III below), five additional categories of vulnerable building types were identified. All five categories meet the criteria of being potentially hazardous and having a significant presence in Palo Alto. The eight categories and the approximate number of buildings included in each category are as follows:  Category I: Constructed of unreinforced masonry, except for those small than 1,900 square feet with six or few occupants (10 remaining buildings in Palo Alto);  Category II: Constructed prior to January 1, 1935 containing 100 or more occupants (4 remaining buildings); Seismic Risk Assessment Study December 21, 2016 Final Report Page 86  Category III: Constructed prior to August 1, 1976 containing 300 or more occupants (9 remaining buildings);  Category IV: Pre-1977 soft-story wood frame (294 buildings);  Category V: Pre-1998 tilt-up concrete (99 buildings);  Category VI: Pre-1977 concrete soft-story (37 buildings);  Category VII: Pre-1998 steel moment frame (35 buildings);  Category VIII: Other pre-1977 concrete construction (170 buildings). The loss estimate discussed ahead in Chapter VIII confirmed that the potential reduction in losses from retrofitting is significant for these categories. Seismic Risk Assessment Study December 21, 2016 Final Report Page 87 CHAPTER VI. CONCEPTUAL SEISMIC RETROFITTING OF REPRESENTATIVE VULNERABLE BUILDINGS Retrofit was considered for all buildings that have not already been retrofitted and were either constructed before 1961 or between 1962 and the “benchmark” year with a soft story. A “benchmark” year is when the code requirements for that building type became similar to those currently in place. Buildings built after a benchmark year are assumed not to have significant seismic deficiencies and are typically not seismically retrofitted. Consistent with typical practice, the performance of the retrofitted buildings in an earthquake is assumed to be less than that of newly constructed buildings. For estimating the cost of retrofit for the improved buildings, Rutherford + Chekene developed conceptual designs for Model Building Types that represent a significant number and value of Palo Alto’s building stock, as well as a significant loss and loss reduction after retrofit. This process identified wood frame (W1, W1A, W2), steel moment frame (S1), concrete shear wall (C2), concrete tilt-up (PC1), and reinforced masonry (RM1) and unreinforced masonry (URM) as appropriate candidates. For each Model Building Type, the age, square footage and number of stories were reviewed to identify a “prototype” building. In cases where the prototype building was not representative of more than two- thirds of the total number of buildings, it was judged that multiple prototypes should be considered. Seismic Risk Assessment Study December 21, 2016 Final Report Page 88 Figure 11: Retrofit scheme for Large Multi-family Soft-Story Wood Frame Building. For example, for the W1A Model Building Type there were a significant number of two-story and three- story buildings with a significant difference in average square footage. Therefore, a two-story and a three-story prototype building were developed to represent this Model Building Type. Eventually this led to the 12 prototype buildings shown in Table 7. Based on a review of buildings of size similar to the prototypes, representative floor plans were developed. A conceptual retrofit was then shown on the floor plans. An example of a conceptual retrofit for the W1A prototype building is shown in Figure 11 from a 2000 brochure by Rutherford + Chekene for the City of San Jose entitled “Practical Solutions for Improving the Seismic Performance of Buildings with Tuckunder Parking.” The retrofit elements were keyed to representative details in 2006 FEMA 547 Techniques for the Seismic Rehabilitation of Existing Buildings, and a written description of Seismic Risk Assessment Study December 21, 2016 Final Report Page 89 collateral impacts was developed as well to provide sufficient detail to allow a rough order of magnitude cost estimate to be prepared. The conceptual retrofit designs, description of collateral impacts, and referenced details are included in Appendix E. The cost estimators of Vanir Construction Management used the conceptual designs to estimate a range of probable cost to implement the retrofits. The retrofit costs for each prototype building are shown in Table 7. These costs include hard costs, which are the costs the owner pays the contractor, plus a design contingency as these are conceptual retrofits. The estimate further includes soft costs, representing architect and engineer design fees, testing and inspection costs, permit fees, and an owner change order contingency. Considered costs do not include hazardous material abatement, costs associated with performing the work while occupants are using the building, triggered accessibility upgrades, cost premiums associated with retrofit of a historic building, tenant relocation or business interruption during construction, project management, renovation, financing, repair of existing conditions, and legal fees. These costs are more variable and project and site specific, and are typically not included in loss estimates for this type of study. A detailed breakdown of estimated cost is included in Appendix F The retrofit costs were extrapolated to Model Building Types not represented by a prototype retrofit as shown in the fifth column of Table 7. Seismic Risk Assessment Study December 21, 2016 Final Report Page 90 Table 7: Conceptual retrofit cost. Retrofit Prototype Model Building Type Stories Square Feet Used for Model Building Types Used for Square Feet Average Retrofit Cost ($/SF) 1 Wood frame smaller residential (W1) 2 5,320 W1 All 12 2 Wood frame larger residential (W1A) 2 9,500 W1A < 15,000 11 3 Wood frame larger residential (W1A) 3 30,000 W1A ≥ 15,000 6 4 Wood frame commercial/industrial (W2) 2 10,000 W2 All 14 5 Steel moment frame (S1) 2 43,900 S1, S2, S3 All 10 6 Concrete shear wall (C2) 1 5,000 C1, C2, S4, PC2 < 10,000 50 7 Concrete shear wall (C2) 2 17,280 C1, C2, S4, PC2 ≥ 10,000 40 8 Concrete tilt-up (PC1) 1 18,435 PC1 < 25,000 29 9 Concrete tilt-up (PC1) 2 38,400 PC1 ≥ 25,000 21 10 Reinforced masonry, wood floor (RM1) 1 2,750 RM1, RM2 < 5,000 74 11 Reinforced masonry, wood floor (RM1) 2 8,150 RM1, RM2 ≥ 5,000 46 12 Unreinforced masonry bearing wall (URM) 1 5,000 URM, S5, C3 All 110 Seismic Risk Assessment Study December 21, 2016 Final Report Page 91 CHAPTER VII. LOSS ESTIMATING FINDINGS FOR EXISTING BUILDING STOCK Hazus is a geographic information system (GIS) based, standardized, nationally applicable multi-hazard loss estimation methodology and software tool. It is used by local, state, and federal government officials for preparedness, emergency response, and mitigation planning. FEMA has recently released the latest version of Hazus (Hazus 3.1) which includes building inventory data reflecting 2010 census data for residential structures and costs to 2014. Rather than using the embedded inventory data for Palo Alto, which are estimated from census data, a detailed earthquake risk assessment of the individual buildings in the study group was conducted using the Hazus Advanced Engineering Building Module (AEBM). Direct loss is calculated through a complex process in Hazus. In essence, the engine consists of a large database of “fragility functions”. These fragility functions describe the probability of exceeding threshold damage levels as a function of a seismic demand parameter. For example, spectral displacement is linked to slight, moderate, extensive and complete damage states to describe the performance of a structural system. The estimated level of damage for the level of ground shaking under consideration is then used to assign the costs to repair or replace the damage to the building’s structural and nonstructural systems and contents (the loss). Each Hazus fragility function represents a combination of Model Building Type, number of stories, and seismic design level. Analyses were conducted for two specific earthquake scenarios developed by the United States Geological Survey (USGS), a major M7.9 San Andreas Fault event, and a strong M6.7 San Andreas Fault event. The USGS has developed a suite of ShakeMap earthquake scenarios for different faults around California. In the San Francisco Bay Area, they include events of different magnitude on a number of faults, such as various segments of the San Andreas Fault and the Hayward Fault. The largest scenario is a M7.9 event on the San Andreas Fault which represents a repeat of the 1906 earthquake. In this scenario, all four segments (Santa Cruz Mountains, Peninsula, North Coast, and Offshore) of the San Andreas Fault are assumed to rupture. There is a M7.2 event on the Peninsula segment with an Seismic Risk Assessment Study December 21, 2016 Final Report Page 92 epicenter somewhat south of Palo Alto. In addition to the scenarios, a ShakeMap of the 1989 Loma Prieta earthquake which had an epicenter southwest of Palo Alto is also available. In reviewing the available scenarios, the repeat of the 1906 earthquake provided a desirable, easy to communicate upper bound scenario. Since the 1989 Loma Prieta event did relatively little damage to buildings in Palo Alto (though there was substantial damage to some of the older buildings at nearby Stanford University), it was judged to be too small to provide meaningful information for policy choices in Palo Alto. Most of the Hayward Fault scenarios also produce small to moderate shaking in Palo Alto. Review of the M7.2 San Andreas scenario found that it produced relatively similar peak ground acceleration and short period spectral accelerations to those of the M7.9 scenario. Tom Holzer, an engineering geologist with the USGS, is a member of the project Advisory Group. With his help and the ShakeMap team at USGS, two other scenarios were developed between the M7.2 scenario and the Loma Prieta earthquake. These are a M6.9 scenario and a M6.7 scenario on the Peninsula segment of the San Andreas with an epicenter directly adjacent to downtown Palo Alto. In the end, the M6.7 scenario was selected in addition to the M7.9 scenario. The M6.7 scenario provided values somewhat smaller than the M7.9 scenario event, values large enough to be meaningful, and is a magnitude size commonly used in USGS communications. It also has a substantially lower equivalent return period from the M7.9 scenario. Contour plots for the short period spectral acceleration for the two M6.7 and M7.9 scenarios are shown in Figure 12. Seismic Risk Assessment Study December 21, 2016 Final Report Page 93 Figure 12: Predicted short period spectral acceleration in vicinity of Palo Alto (city boundary shown) for two selected San Andreas Fault scenarios. Table 8 summarizes the total loss calculated by Hazus for the as-is condition for the two earthquake scenarios. The results show that the estimated losses to Palo Alto buildings and contents in a M6.7 scenario will be significant, on the order of $1.2 billion. Though ground shaking in the M7.9 scenario is only about 25% larger than it is in the M6.7 scenario, overall building and content losses double to $2.4 billion. Average building damage and content damage also approximately double with a M7.9 event. The difference in the number of buildings that are heavily damaged with the larger earthquake is more pronounced with a 12-fold increase from the M6.7 to the M7.9 scenarios. This is shown in the fourth column of Table 8 as the number of buildings with a damage ratio exceeding 20%. Seismic Risk Assessment Study December 21, 2016 Final Report Page 94 Table 8: Total losses for study group in as-is condition. Earthquake Scenario Building Value1 ($B) Content Value2 ($B) Number of Bldgs with Damage Ratio ≥ 20%3 Estimated Building Damage4 ($B) Estimated Content Damage4 ($B) Total Building and Content Damage ($B) M7.9 18.9 17.3 224 1.7 0.7 2.4 M6.7 18.9 17.3 19 0.8 0.4 1.2 Ratio of M7.9/M6.7 2 2 2 Notes: 1. Building value is the complete replacement cost for the building, and includes the structure, architectural, mechanical, electrical, and plumbing components (e.g., ceilings and lighting). 2. Content value includes the complete replacement cost of furniture and equipment that is not integral with the structure (e.g., computers and other supplies). They are estimated as a percent of structure replacement value, dependent on occupancy. 3. Damage ratio is defined as the cost of repairing damage divided by the replacement cost of the building. 4. Estimated building and content damage cost is the cost associated with repair and replacement of the building and its content. Seismic Risk Assessment Study December 21, 2016 Final Report Page 95 To put the loss from building damage in context, the average annual valuation of Palo Alto construction permits was $400M between 2013 and 2016 (which represents a boom period). The total loss in a major M7.9 earthquake represents more than four years’ worth of construction, and the total loss in a strong M6.7 earthquake represents more than two years worth of construction. It should be noted that these losses do not include the effects of lives lost and business disruption, or the ripple effects in the local economy or real estate market, and that much of this loss will not be insured. Table 9 breaks out the estimated loss and damage ratio for various model building types, and it can be seen that it depends on the metric used which building type is considered the poorest performer. Looking at the total loss alone, concrete bearing wall buildings and commercial wood frame buildings are responsible for the highest total loss. This tracks well with the earlier finding that these structural systems are the most prevalent ones. If we look at the highest average building damage ratio instead, buildings with unreinforced masonry bearing walls and unreinforced masonry infills are the most prone to damage. However, not very many of them exist in Palo Alto, and as a result they do not represent much of the aggregate loss. It is therefore important to look at multiple metrics when deciding which buildings are the most vulnerable and significant to the community as a whole. Seismic Risk Assessment Study December 21, 2016 Final Report Page 96 Table 9: Top three vulnerable building types ranked by total loss, average damage ratio, and number of severely damaged buildings. Building Type Number of Buildings Building Value ($M) M7.9 EQ Total Building + Content Losses ($M) M7.9 EQ Average Building Damage Ratio M7.9 EQ Number of Bldgs with Damage Ratio ≥ 20% Concrete shear wall (C2) 318 4,082 477 14% 75 Concrete tilt-up (PC1) 242 3,368 365 12% 32 Wood frame commercial/industrial (W2) 307 2,369 216 9% 9 Steel frame with masonry infill (S5) 2 3 1 38% 1 Unreinforced masonry bearing wall (URM) 9 15 4 29% 9 Concrete frame with masonry infill (C3) 8 8 2 29% 6 Concrete shear wall (C2) 318 4,082 477 14% 75 Concrete tilt-up (PC1) 242 3,368 365 12% 32 Steel moment frame (S1) 75 1,242 130 18% 27 Seismic Risk Assessment Study December 21, 2016 Final Report Page 97 CHAPTER VIII. LOSS ESTIMATING FINDINGS WITH BUILDINGS RETROFITTED A second Hazus AEBM run was done assuming a retrofitted building stock. For this run, it was assumed that a building would be retrofitted if it has not already been retrofitted and is either constructed before 1961 or between 1962 and the benchmark year with a soft story. The Hazus model was rerun with the updated fragilities simulating retrofit. Table 10 shows the resulting total losses and damage ratios. Though total losses are still significant, comparing the results of Table 10 with Table 8 shows a reduction in total loss of 45% for the M7.9 scenario, and 33% for the M6.7 scenario. In other words, aggregate loss to the community if all considered properties were retrofit could be reduced by one third in a very plausible event and almost halved in a much larger event. Another important improvement is the reduction of the number of buildings with more than 20% damage. The M7.9 scenario shows a reduction from 224 buildings to 6 buildings, meaning that the probability of building collapse and resulting injuries and fatalities has become very low. Finally, the damage and loss of the M7.9 scenario remain approximately two times the amount sustained in the M6.7 scenario. This suggests that the retrofit has a similar impact for both levels of ground shaking. Table 10: Total losses after retrofitting. Earthquake Scenario Building Value ($B) Content Value ($B) Estimated Building Damage ($B) Number of Bldgs with Damage Ratio ≥ 20% Estimated Content Damage ($B) Total Building & Content Damage ($B) M7.9 18.9 17.3 0.9 6 0.5 1.3 M6.7 18.9 17.3 0.5 0 0.3 0.8 Ratio of M7.9/M6.7 2 - 2 2 Table 11 breaks out the reduction in total loss by model building type for the M7.9 scenario, and shows the associated retrofit cost. The average reduction in loss varies by building type, with URM buildings showing the highest reduction in loss after retrofit of 80%, and steel braced frames showing an 18% Seismic Risk Assessment Study December 21, 2016 Final Report Page 98 reduction at the low end. On average, the retrofit costs are on the order of the damage reduction for this scenario, though by building type the average damage reduction (loss avoided) divided by retrofit cost ranges from 0.14 for steel light frame buildings to almost eight for reinforced masonry buildings. Wood frame and concrete buildings are responsible for the largest reduction in total loss, with wood frame construction representing over 20% of the loss reduction, and concrete buildings over 50%. It should be noted that the data in Table 11 also includes buildings that were not retrofitted. As a result, further parsing of the data is needed to better understand which buildings are responsible for the most loss, and those that can be improved more cost-effectively. Seismic Risk Assessment Study December 21, 2016 Final Report Page 99 Table 11: Comparison of retrofit benefits and costs by Model Building Type. Model Building Type M7.9 EQ Average Damage ($/SF) M7.9 EQ Total Damage Reduction ($1,000) Average Damage Reduction ($/SF) Retrofit Cost ($/SF) Wood frame smaller residential (W1) 16 13,775 4 12 Wood frame larger residential (W1A) 25 61,317 7 6-11 Wood frame commercial/industrial (W2) 50 160,155 26 14 Steel moment frame (S1) 62 76,150 25 10 Steel braced frame (S2) 44 24,222 8 10 Steel light metal frame (S3) 108 38,163 72 10 Steel frame with concrete shear walls (S4) 101 11,118 69 40-50 Steel frame with masonry infill (S5) 247 695 121 110 Concrete moment frame (C1) 55 8,045 25 40-50 Concrete shear wall (C2) 70 336,574 35 40-50 Concrete frame with masonry infill (C3) 120 865 34 110 Concrete tilt-up (PC1) 68 218,491 27 21-29 Precast concrete frame (PC2) 21 0 0 21-29 Reinforced masonry, wood floor (RM1) 59 87,697 31 46-74 Reinforced masonry, concrete floor (RM2) 35 3,727 6 46-74 Unreinforced Masonry Bearing Wall (URM) 23 5,216 19 110 Totals 51 1,046,210 22 Seismic Risk Assessment Study December 21, 2016 Final Report Page 100 Table 12 shows those buildings types that may be considered good candidates for a retrofit program. Although representing only about 15% of the total inventory, these buildings are responsible for over 30% of the total loss. This is reflected in the considerably higher than average loss (fourth column of Table 12). The benefit of retrofit is also considerable for this group of buildings, as they are responsible for over 50% of the reduction in loss. Additionally, the cost to retrofit them is only a fraction of the losses avoided in a major event, ranging from a third for the concrete buildings to a tenth for the steel frames. Note that these values are based on conceptual retrofits. Actual retrofit costs for individual buildings would vary substantially, and the steel moment frame benefit-to-cost ratio is higher than expected by engineering judgment. This is caused in part by a comparatively low retrofit cost for this Model Building Type. Table 12: Comparison of benefits and costs by selected Model Building Type, date and characteristics. Model Building Type Number of Buildings Total SF (1,000) M7.9 EQ Average Loss by Building ($/SF) M7.9 EQ Average Loss Avoided by Retrofit ($/SF) Average Cost to Retrofit ($/SF) (Average Loss Avoided) / (Average Retrofit Cost) Pre-1977 wood frame soft-story (W1, W1A, W2) 294 3,690 66 46 12 4 Pre-1998 tilt-up (PC1) 99 3,078 106 71 23 3 Pre-1977 concrete soft-story (C1, C2, C3) 37 842 149 108 42 3 Pre-1998 steel moment frame (S1) 35 690 152 110 10 11 Seismic Risk Assessment Study December 21, 2016 Final Report Page 101 CHAPTER IX. REVIEW OF PAST SEISMIC RETROFITS To gain a better understanding of the quality of the retrofits and identify relevant issues to updating Palo Alto’s seismic risk mitigation program, a sample of the submitted engineering studies and building retrofit drawings was reviewed. Ten buildings were selected, so that their permit history could be reviewed and documents could be retrieved from the archives of the Building Department. They were distributed over the three existing hazardous buildings categories, and also included soft-story wood frame buildings. Records were retrieved for four Category I buildings (to reflect the higher number of these), two Category II buildings, two Category III buildings, and two soft-story wood frame buildings. The City tracked permit numbers for the retrofit projects in their “hazardous buildings” database. Even so, it proved difficult to retrieve associated documents. After careful review of the City’s records, some archived documents showing structural modifications were retrieved. The type of documents available varied from building to building. In about half of the cases, plans were available, and in the other half, the documents consisted of calculations with sketches. For one of the Category I buildings, plans showing a comprehensive retrofit were available. The 2001 California Building Code was referenced for seismic design. In a second case, the retrieved plans show retrofit of a section of the building that appears to be intended to improve the original retrofit. It was unclear if other sections of the building were improved in a similar fashion. In the third case, structural calculations were provided. It is unclear what criteria were used, as the 1991 UCBC is used for certain elements and the regular UBC seismic load calculations for global loading. The set of plans retrieved for the last building is for a tenant improvement that appears to have been constructed a few years after the original seismic retrofit. Interestingly, the structural engineer referenced the 1977 UBC as the seismic design criteria. The building is identified on the plans as a concrete building, rather than a URM building. For the Category II buildings, in one case only the permit application worksheet was available; in the other case there were detailed calculations and sketches (no construction documents). The permit Seismic Risk Assessment Study December 21, 2016 Final Report Page 102 application for the first building indicates that shear walls were added as part of a voluntary seismic upgrade. The sketches for the second building indicated that the retrofit was designed to mitigate the deficiencies identified in the evaluation report. It references both elements and loads from the earlier study. For the Category III buildings, it appears that in both cases the projects were driven by modifications or additions to the existing building. Since no plans were archived, and the calculations could not be easily followed, it was not clear if the existing building was fully evaluated and if all deficiencies found in the original evaluation report were addressed. In 2003, the Collaborative for Disaster Mitigation at San Jose State University completed an “Inventory of Soft-First Story Multi-Family Dwellings in Santa Clara County”. According to the report the City of Palo Alto had 130 soft-first story multi-family buildings including 1,263 residential units housing 3,158. The list of addresses from the San Jose State University report was updated with information from the City of Palo Alto Fire Department, and resulted in a reduced list of 108 addresses. According to this list, which was included in a recent Staff Report to Palo Alto’s Policy and Services Committee33, six buildings were improved voluntarily. Two sets of plans were retrieved and reviewed; in one case the plans improved two buildings with the same plan as a mirror image. One of the permits was issued in 2006 and one in 2009. It appears that in both cases the buildings were of a more recent vintage, as plans show that existing plywood shear walls are present. On both sets of plans design criteria were referenced, with one building referring to the 2001 California Building Code, and one Appendix Chapter A4 of the 2006 International Existing Building Code. Review of the submitted engineering studies and building retrofit drawings identified the following relevant needs for future seismic risk mitigation programs:  Clear identification of retrofit design intent, scope, and limitations, also for voluntary retrofits;  Identification of existing structural systems;  Decision on requirements for buildings that have had partial seismic retrofits completed, and may have remaining seismic deficiencies. 33 Policy and Services Committee Staff Report 5293, Discussion of Updating the Seismic Safety Chapter of the Municipal Code for Hazardous Buildings, December 9, 2014, available online at https://www.cityofpaloalto.org/civicax/filebank/documents/44945 (accessed 12/21/2016) Seismic Risk Assessment Study December 21, 2016 Final Report Page 103 CHAPTER X. ADDITIONAL RECOMMENDED PROGRAM FEATURES In addition to expansion of the building categories included within the City’s seismic risk mitigation program and refinement of disclosure measures and incentive options, a number of other program features are recommended. They are described in the following:  Use the current inventory, taking note of its limitations: The inventory developed for the effort to date involved use of digital information and field surveys. A complete field survey of all buildings in Palo Alto was outside the scope of the project. However, the inventory that has been developed is an excellent resource. The first step in any future ordinance will involve notification of building owners that they may be subject to the requirements of the ordinance. Those buildings that were field surveyed and fall within the scope of the ordinance can be notified using the existing inventory. For the remaining buildings, additional field survey is recommended. This would be a rapid visual assessment and could be conducted by City staff or outside consultants.  Use an initial screening form phase: Typically, as part of the notification process, a screening form of about one-page in length is sent, and the owner is required to have a design professional, such as a structural engineer or architect, complete the form for a relatively nominal cost to confirm whether or not the building actually is subject to the City’s ordinance. Some buildings may appear from a rapid visual assessment to be one of the building categories covered, but upon closer review they are exempt. This approach has been taken in many communities in the past, and thus sample forms are available that can be easily tailored for Palo Alto.  Clearly specify seismic evaluation and retrofit scope: The seismic evaluation (and retrofit) methodology for each building category will need to be defined after the building categories included in the updated ordinance are determined. Industry consensus standards exist and cover the vulnerable building categories identified for Palo Alto. These include the 2015 International Existing Building Code (IEBC) and 2014 ASCE 41-13 Seismic Evaluation and Retrofit of Existing Buildings. Both are currently being updated by groups of engineers and building Seismic Risk Assessment Study December 21, 2016 Final Report Page 104 officials. For soft-story wood frame buildings, there is also the 2012 FEMA P-807 Seismic Evaluation and Retrofit of Multi-Unit Wood-Frame Buildings with Weak First Stories. For steel moment frame buildings, there is also the 2000 FEMA 351 Recommended Seismic Evaluation and Upgrade Criteria for Existing Welded Moment Resisting Steel Structures. ASCE 41 has three tiers of evaluation: Tier 1, Tier 2, and Tier 3. Tier 1 is primarily a screening tool. As a minimum standard, Tier 2 is recommended. Table 13 provides recommended evaluation and retrofit standards. Table 13: Recommended Evaluation and Retrofit Standards Category Description Evaluation and Retrofit Standards I Unreinforced masonry IEBC Appendix Chapter A1 II Built before 1/1/35 with 100 or more occupants ASCE 41 III Built before 8/1/76 with 300 or more occupants ASCE 41 IV Pre-1977 soft-story wood frame IEBC Appendix Chapter A4, ASCE 41, or FEMA P-807 V Pre-1998 tilt-up IEBC Appendix Chapter A2 and ASCE 41 VI Pre-1977 soft-story concrete ASCE 41 VII Pre-1998 steel moment frame ASCE 41, or FEMA 351 VIII Other pre-1977 concrete ASCE 41  Provide detailed evaluation report submittal requirements: Minimum submittal requirements for evaluation reports will need to be defined. The above evaluation and retrofit standards provide some guidance but a short clear set of requirements will be beneficial. This will include such items as address, construction date, size, number of stories above and below grade, owner, occupancy type, structural system type, the location and features of the primary structural system, the extent of field review, material properties, the evaluation criteria and methodology used, whether the structure meets the evaluation criteria, identified seismic Seismic Risk Assessment Study December 21, 2016 Final Report Page 105 deficiencies if it does not. The current ordinance requires identification of retrofit measures to address seismic deficiencies. Even in a voluntary program, it is recommended that this be continued to help owners, tenants, and the City better understand what is necessary to mitigate the issues that exist.  Specify how past partial retrofits will be handled: In the past, some buildings have had partial seismic retrofits where only selected portions of the seismic force-resisting system have been upgraded, and some seismic deficiencies may still exist in these structures. If mandatory retrofit requirements are implemented that provide for comprehensive retrofitting of the full seismic load path, there may be buildings with previous partial retrofits that do not fully comply and need remaining deficiencies to be addressed. This will be identified in the seismic evaluation report.  Update both new and existing building permit submittal requirements: Review of City records found that basic information such as the building structural system, date of construction, and retrofit standard used (where applicable) are not readily available. It is recommended that submittals for permit for both new buildings and existing building renovations require this information. For structural systems, both the categorization found in ASCE 41 and the ASCE 7 Table 12.2-1 is recommended. This will allow the city to have a much better understanding of its building stock and its expected performance in an earthquake.  Write a new ordinance or set of ordinances to update the program: After the Council has provided direction and the above issues have been addressed, an updated ordinance will need to formally be written. This can be done by City staff, but will likely benefit from the involvement of an appropriately experienced structural engineering consultant.  Carefully address program management and interdepartmental coordination needs: To successfully manage Palo Alto’s updated Seismic Risk Mitigation Program, an effective management plan is needed so that progress is monitored by the City and community intent is achieved. It will include a realistic list of information that can be easily input, summarized, and tracked in digital records such as the submittal requirements recommended above and that can be used to link the seismic risk program data to other digital records such as assessor files or GIS systems; quality assurance procedures for checking information; clearly defined roles and responsibilities; timelines and requirements for reporting of information internally and externally; procedures for gathering, assessing and implementing community feedback and suggestions; and links between the seismic risk mitigation program and activities that will occur following an earthquake, such as postearthquake safety evaluation. Seismic Risk Assessment Study December 21, 2016 Final Report Page 106  Delineate department and key staff responsibilities: For Palo Alto’s updated Seismic Risk Mitigation Program, City staff will be responsible for several categories of activities.. These will include the basic activities such as managing the notification and inventory process, reviewing evaluation reports and plan checking retrofit construction documents, and field inspections of retrofit work. Less obvious activities will include evaluating requested exceptions to the program or alternative means of compliance; managing feedback from design professionals, owners, and the public; tying pre-earthquake retrofitting to post-earthquake safety evaluations records; and managing post-earthquake safety evaluation, repair, and recovery plans. Depending on the scale of the updated program, it is possible that addition staff members or consultants will be needed to handle the work flow. The City may also benefit from an appropriately experienced structural engineer to provide advice on technical and program management issues, particularly as the program moves to final definition and then to initial implementation. Later, as is done in some communities, it may be desirable to create volunteer review boards of local structural engineers who review questions on the evaluation and retrofit criteria and provide the city with technical opinions that staff can use. Seismic Risk Assessment Study December 21, 2016 Final Report Page 107 CHAPTER XI. QUESTIONS TO GUIDE COUNCIL DELIBERATIONS AND POTENTIAL ISSUES FOR FUTURE STUDY 1. QUESTIONS TO HELP GUIDE COUNCIL DELIBERATIONS Preferred policy directions were developed with the Advisory Group and staff as discussed in Chapter I and include expansion of the building categories currently covered by the City’s ordinance, movement toward mandatory requirements for some categories, additional disclosure measures and use of incentives to increase the effectiveness and likelihood of compliance and of success. To help the Council in its deliberations, a series of questions are given here. They are similar to questions and issues discussed by the Advisory Group. 1. Does the Council wish to expand the current seismic hazard program to cover more vulnerable building categories? 2. If so, which of the building categories in Table 1 should be included? The Advisory Group proposed that the existing Categories I-III, plus the Categories IV-VII, be included as follows. The categories are: a. Category I: Constructed of unreinforced masonry, except for those smaller than 1,900 square feet with six or fewer occupants (in the current ordinance) b. Category II: Constructed prior to January 1, 1935 containing 100 or more occupants (in the current ordinance) c. Category III: Constructed prior to August 1, 1976 containing 300 or more occupants (in the current ordinance) d. Category IV: Pre-1977 soft-story wood frame e. Category V: Pre-1998 tilt-up concrete f. Category VI: Pre-1977 concrete soft-story g. Category VII: Pre-1998 steel moment frame An eighth category (Category VIII other older nonductile concrete buildings) was discussed, but because of the lack of inexpensive analytical methods for reliably identifying the worst of these buildings, inclusion of this building category in an updated ordinance is not recommended at this Seismic Risk Assessment Study December 21, 2016 Final Report Page 108 time. Such buildings could be included in the future when the engineering community has developed appropriate analytical methods. 3. In addition to mandatory initial evaluation requirements, should one or more of the categories of buildings be subject to mandatory retrofit requirements? The Advisory Group had a consensus on mandatory requirements for renovation for unreinforced masonry buildings and there was strong support among many members for other categories such as soft-story wood frame buildings and tilt- up buildings, particularly those with high occupancies. 4. Should the City develop a trigger mechanism based on sale or substantial renovation where seismic retrofit is required? If so, which building categories should be subject to a trigger mechanism? There was support among some Advisory Group members for a trigger mechanism for some building categories, such as tilt-up industrial buildings, particularly those that are being converted to office buildings and increasing the occupant load and thus exposure to seismic risk. 5. What public disclosure or notice measures of the need for retrofitting a building should be pursued? The Advisory Group supported website listing and tenant notification, but there was low support for placing notices on property titles or for signage or placing placards on the outside of buildings. Other possibilities include encouraging earthquake performance rating systems and disclosing them to the public or developing such a rating system for city-owned buildings. 6. What incentive measures to encourage property owners undertake a structural retrofit should be pursued? The Advisory Group supported incentives for fee waivers, expedited permitting, and property- assessed financing tools. There was minimal interest in deep financial assistance such as establishing a special district or passing of bond measure to assist property owners financially. . Opinions were split on the use of transfer of development rights, floor area ratio bonuses, and parking exemptions. 8. How much time do you feel is reasonable for property owners of at risk buildings in the community to: a) prepare the initial structural evaluation reports for regulated buildings; and b), to complete mandatory structural retrofits to their buildings? 2. POTENTIAL ISSUES FOR FUTURE STUDY AND CONSIDERATION For some issues, based in part on Advisory Group discussions, additional information may be beneficial to help develop a strategy and to better understand potential impacts on key stakeholders and community concerns. Some of these issues are primarily economic and were outside the scope of the current study. The City Council may wish to direct staff and/or outside consultants to investigate some of these items in more detail as the seismic risk management program effort proceeds. These issues include the following: Seismic Risk Assessment Study December 21, 2016 Final Report Page 109 • Occupants and tenants – How much would a typical retrofit add to the monthly rent of a multifamily soft-story wood frame apartment tenant? – Would some tenants be unable to afford a rent increase and seek housing elsewhere in Palo Alto or move outside the city (and if so, how many might be displaced)? – If soft-story wood frame apartments in Palo Alto are retrofitted in time before the next major earthquake, how much less displacement of residents would occur as a result of the earthquake? – What categories of buildings are most important to address in order to help maintain the commercial viability and vitality of the City’s core business districts and tax base? • Property owners, developers, and business owners – What are the characteristics of property owners that would be affected? – How might small businesses be affected compared to larger ones? – How many property owners are in need of lower cost capital or other substantial financial assistance to fund retrofitting? • Impacts of Seismic Restoration on Retention of Historic Structures in the City – Insure that the review of initial seismic evaluations identify those structures that are listed in the City’s Historic Inventory and flag them for attention during subsequent review. – Develop a clear process for reviewing proposed seismic retrofits to historic structures that is coordinated among responsible city departments and is consistent with current regulations and Community policies. – Seek out retrofit alternatives that are consistent with the Historic Building Code, historic characteristics of the structure, and provide the most risk reduction. • City departmental resources and budgets – What would be the loss in revenue to the Building Department if fee waivers were offered? – What would be the staffing and budgetary needs over time to administer an expanded program that addresses additional building types? – What kinds of interdepartmental cooperation and staff resources in other departments are necessary to ensure effective implementation and coordination with other city planning and public safety efforts? Seismic Risk Assessment Study December 21, 2016 Final Report Page 110 • Overall community economic health – What kind of benefits could accrue to Palo Alto in terms of maintaining community function and ability to recover if various building categories are retrofitted in time before the next major earthquake? • Other related issues – It was brought up in the Advisory Group that the Building Department needs flexibility and authority to take steps to get tough seismic mitigation projects done. One idea was to grant the Building Official the ability to classify certain projects (with well-specified criteria) as warranting a kind of “seismic safety” or “earthquake resilience” fast tracking, with city departments agreeing to coordinate on a specified accelerated project review timeframe. – Although outside the formal scope of this planning effort, several Advisory Group members commented that it would be desirable for the City to do some kind of assessment of any earthquake mitigation needs in public buildings and facilities serving the City. – Advisory group members recommended the community be informed of Palo Alto’s overall potential seismic risk by providing a summary of potential impacts on the City’s website, including the expected performance of vulnerable buildings. – The group also had a high degree of support for recommending that the City initiate and nest future earthquake mitigation programs within a broader disaster or community resilience initiative, as cities such as Los Angeles, Berkeley, and San Francisco have done. This could be incorporated into the update of the City’s Comprehensive Plan Safety Element. There was insufficient time in the project’s six advisory group meetings to consider potential initiatives to assess risks for cell phone towers, water supply, facades, private schools, post-earthquake shelter facilities, and/or other assets important to community recovery. APPENDIX A Table of Historic California Earthquake Risk Reduction Legislation DRAFT Appendix A -- Table of Historic California Earthquake Risk Reduction Legislation 24 Type of Legislative Approach Short Title Year Description Relevance to Palo Alto Program Update Targeted Use or Structure Type Special Programs Status and Reference Statute or Code Field Act 1933 Established regulations for the design and construction of K - 12 and community college buildings. The Division of the State Architect enforces the Field Act. Palo Alto has school facilities subject to this policy. Public Schools Education Code- §17281 Riley Act 1933 Required local governments to have building departments that issue permits for new construction and alterations to existing structures and conduct inspections. The Act also set minimum seismic safety requirements that have since been incorporated into all building codes. Palo Alto has school facilities subject to this policy. Public Schools Garrison Act 1939 Required school boards to assess building safety of pre - Field Act schools, ordered modernization of non-Field act compliant structures. As of 2011, Palo Alto had six schools on the "AB300 list" of affected buildings. Current status of these properties is not known. Public Schools California Planning and Zoning Law Requirements 1971 Required city and county plans to include seismic safety elements. Palo Alto addresses earthquake hazards in the Safety element of its 2008 General Plan. General Plan Government Code § 65302 DRAFT Appendix A -- Table of Historic California Earthquake Risk Reduction Legislation 25 Type of Legislative Approach Short Title Year Description Relevance to Palo Alto Program Update Targeted Use or Structure Type Special Programs Status and Reference Statute or Code Alquist-Priolo Earthquake Fault Zoning Act 1972 Required cities and counties to require a geologic investigation, before issuing building permits, to ensure that proposed buildings will not be constructed across active faults. Proposed building sites must be evaluated by a licensed geologist. If an active fault is found, a structure for human occupancy cannot be placed over the trace of the fault. Palo Alto contains areas located in Earthquake Fault Zones where construction is subject to these rules about heighted review or prohibitions exist on new development. Zoning Public Resources Code § 2621- 2630 Strong Motion Instrument Act 1972 Established a statewide network of strong motion instruments to gather vital earthquake data for the engineering and scientific communities. Palo Alto may have relevant facilities within its jurisdiction, and the resulting information is a planning resource. Data obtained from the strong motion instruments can be used to recommend changes to building codes, assist local governments in the development of their general plans, and help emergency response personnel in events. Research Public Resources Code§§2700 - 2709.1 DRAFT Appendix A -- Table of Historic California Earthquake Risk Reduction Legislation 26 Type of Legislative Approach Short Title Year Description Relevance to Palo Alto Program Update Targeted Use or Structure Type Special Programs Status and Reference Statute or Code Alfred E. Alquist Hospital Facilities Seismic Safety Act 1973 Regulated the design, construction and alteration of hospitals; set seismic safety standards for new hospitals; created an advisory Hospital Building Safety Board. Office of Statewide Health Planning & Development enforces this Act. Palo Alto has at least two major hospitals in its jurisdiction that are subject to this Act. Current status of their facilities is not known. Hospitals Health and Safety Code§129675 Seismic Safety Commission Act 1975 Created the independent California Seismic Safety Commission (CSSC) to provide a consistent earthquake policy framework for the state. The mission of CSSC is “to provide decision makers and the general public with cost - effective recommendations to reduce earthquake losses and expedite recovery from damaging earthquakes. Palo Alto can take advantage of the technical assistance offered by the CSSC and its publications, in particular the statewide Earthquake Hazard Loss Mitigation Plan of 2013, provides extensive advice about high priority earthquake issues and initiatives. Strategy Business and Professions Code §1014 AB 2438 (Wray) 1980 Authorized local governments to adopt ordinances requiring earthquake gas shut-off valves in buildings open to the public. Palo Alto does not currently require gas shut off valves but could choose to do so. Utilities Chapter 971, Statutes of 1980 DRAFT Appendix A -- Table of Historic California Earthquake Risk Reduction Legislation 27 Type of Legislative Approach Short Title Year Description Relevance to Palo Alto Program Update Targeted Use or Structure Type Special Programs Status and Reference Statute or Code SB 360 (Alquist) 1981 Required mobile home bracing devices. It also required the Department of Housing and Community Development to administer the program, test devices, and issue certifications. Palo Alto has one mobile home park in its jurisdiction, Buena Vista Mobile Home Park. Status of these homes with regard to bracing is not known. Mobile Homes Chapter 533, Statutes of 1981 Mello Roos Act 1982 Permits cities to establish Capital Improvement Districts that can issue special bonds to fund facilities improvements without coming under the caps on property tax increases that were imposed under Proposition 13. Although there is no precedent to date, Palo Alto may be able to use this tool to secure additional funds for retrofit projects for either public or private buildings. Financing Government Code §53311- 53317.5 SB 961 (Alquist) 1982 Required the Office of Statewide Health Planning and Development to institute plan review and field inspection of hospital buildings being constructed to ensure building safety. Requires the State Fire Marshal to ensure fire safety of these buildings. Palo Alto has at least two major hospitals in its jurisdiction that are subject to this Act. Hospitals Chapter 303, Statutes of 1982 DRAFT Appendix A -- Table of Historic California Earthquake Risk Reduction Legislation 28 Type of Legislative Approach Short Title Year Description Relevance to Palo Alto Program Update Targeted Use or Structure Type Special Programs Status and Reference Statute or Code Alquist Hospital Facilities Seismic Safety Act 1983 Required design and construction standards for hospitals; requires that after Jan. 1, 2008 any general acute care hospital building determined to be at potential risk of collapse or poses a risk of significant loss of life be used only for non-acute care. Palo Alto has at least two major hospitals in its jurisdiction that are subject to this Act. Hospitals Health and Safety Code §§130000 - 130070 Economic Disaster Act 1984 Institutionalized the planning and response of state agencies to disasters in order to reduce economic hardship stemming from these disasters to business. Upon the completion of the emergency phase and the immediate recovery phase of a disaster, appropriate state agencies shall take actions to provide continuity of effort conducive to long -range economic recovery. This law establishes the authorities and guidance for coordination among local and state entities in the management and recovery from a major event. Recovery Government Code §8695 DRAFT Appendix A -- Table of Historic California Earthquake Risk Reduction Legislation 29 Type of Legislative Approach Short Title Year Description Relevance to Palo Alto Program Update Targeted Use or Structure Type Special Programs Status and Reference Statute or Code SB 239 (L. Greene) 1985 Created the Essential Services Building Act and declared the intent of the Legislature that essential services buildings be designed and constructed to a higher standard to resist damage from earthquakes. Established design and construction requirements. Palo Alto Building Department is required to implement heightened review for its fire stations, police stations, emergency communications, and other qualifying buildings. Essential Buildings Chapter 1521, Statutes of 1985 Essential Services Building Seismic Safety Act 1986 Required enhanced regulatory oversight by local governments during the design and construction of new essential service facilities, such as fire and police stations and emergency communications and operations facilities. The Division of the State Architect within DGS enforces this Act. Palo Alto Building Department is required to implement heightened review for its fire stations, police stations, emergency communications, and other qualifying buildings. Essential Buildings Health and Safety Code §16000 Unreinforced Masonry Building Law 1986 Required local governments in high seismic regions of California to inventory un - reinforced masonry buildings, establish mitigation programs, and report progress to the CSSC. Signage requirements were added in 2004. Palo Alto mandated to comply. Current program in place has resolved nearly all cases but a few remain. URM Government Code §§ 8875- 8875.10 DRAFT Appendix A -- Table of Historic California Earthquake Risk Reduction Legislation 30 Type of Legislative Approach Short Title Year Description Relevance to Palo Alto Program Update Targeted Use or Structure Type Special Programs Status and Reference Statute or Code California Earthquake Hazards Reduction Act 1986 Called for a coordinated state program to implement new and expanded activities to significantly reduce the earthquake threat. Established the legal basis for several key programs. Strategy Government Code §8870 SB 548 (Alquist) 1986 Created the California Earthquake Hazard Reduction Act which called for the Commission to administer a program to “significantly reduce hazards by January 1, 2000.” Established the legal basis for several key programs. Strategy Chapter 1491, Statutes of 1985 SB 2453 (Maddy) 1989 Required surgical clinics to hire architects and structural engineers to assure that medical equipment are properly anchored. Palo Alto may have relevant health facilities within its jurisdiction. Hospitals Chapter 1579, Statutes of 1990 Seismic Hazards Mapping Act 1990 Directed the Department of Conservation to identify and map areas prone to liquefaction, earthquake - induced landslides, and amplified ground shaking. Requires geotechnical investigations and mitigation measures before permitting developments in mapped Zones of Required Investigation. Palo Alto contains areas located where construction is subject to these additional rules for heighted review or prohibitions exist on new development. Zoning Public Resources Code §§ 2690 - 2699.6 DRAFT Appendix A -- Table of Historic California Earthquake Risk Reduction Legislation 31 Type of Legislative Approach Short Title Year Description Relevance to Palo Alto Program Update Targeted Use or Structure Type Special Programs Status and Reference Statute or Code Natural Hazards Disclosure Act 1990 Required transferor of real property, consisting of not less than one nor more than four dwelling units, to disclose to transferee if the real property lies within any of the following hazardous areas: a Special Flood Hazard Area (any type Zone A or V) designated by FEMA; an area of potential flooding shown on a dam failure inundation map; a very high fire hazard severity zone; wildland area that may contain substantial forest fire risks and hazards; an earthquake fault zone; and/or a seismic hazard zone. All relevant real estate transactions in Palo Alto are subject to this requirement, but compliance is not monitored or enforced. Evidence suggests it is common practice to check "do not know" as a blanket policy for seismic vulnerability questions. Disclosure Civil Code §1102 AB 3313 (Woodruff) 1990 Required the State Architect and the Building Standards Commission to develop and adopt seismic retrofit guidelines for state buildings, including public universities. Palo Alto may have relevant facilities within its jurisdiction or be able to take advantage of the guidelines produced for this program in considering rehabilitation of its own facilities. Public Buildings and Universities Chapter 1511, Statutes of 1990 DRAFT Appendix A -- Table of Historic California Earthquake Risk Reduction Legislation 32 Type of Legislative Approach Short Title Year Description Relevance to Palo Alto Program Update Targeted Use or Structure Type Special Programs Status and Reference Statute or Code Earthquake Safety and Public Buildings Rehabilitation Bond Act 1990 Authorized the state to issue $300 million in general obligation bonds for the seismic retrofit of state and local government buildings ($250 million for state -owned buildings and $50 million for partial financing of local government essential services facilities). Funding is exhausted but this legislation provides a model of one pathway to financial support to local entities to do seismic mitigation work. Public Buildings and Universities Prop 122 & Government Code §§8878.50- 8878.52 Executive Order D-86-90 1990 Required CalTrans to prepare plan to retrofit transportation structures; requests UC and requires CSU to give priority consideration to seismic safety in allocation of funds for construction projects. Palo Alto may have related facilities within its jurisdiction or that affect its citizens or local businesses. Infrastructure AB 204 (Cortese) 1991 Created a model, minimum building code for the retrofit of buildings with brick-bearing walls. Palo Alto can reference the codes that resulted from this law as input regarding methods for URM retrofit. URM AB 908 (Farr) 1991 Specified that liquefaction and other seismic hazards are geologic hazards to be addressed in the safety element of a general plan. Palo Alto complies with this requirement through its 2008 General Plan. General Plan Chapter 823, Statutes of 1992 DRAFT Appendix A -- Table of Historic California Earthquake Risk Reduction Legislation 33 Type of Legislative Approach Short Title Year Description Relevance to Palo Alto Program Update Targeted Use or Structure Type Special Programs Status and Reference Statute or Code AB 43 (Floyd) 1991 Excluded seismic retrofit improvements to hazardous buildings from property-tax reassessments. Palo Alto building owners who invest in retrofits can file paperwork to obtain relief from any property tax assessment increases that might result. This law provides a modest incentive to invest in retrofits (by removing any new tax obligations that might arise) but the downside is these investments do not increase the local tax base. Tax Policy Chapter 8, Statutes of 1991 Emergency Room Mandates 1991 Established seismic safety standards for ambulatory surgical centers; requires fixed medical equipment (floor roof or wall mounted) to be installed using services of licensed architect or structural engineer; and requires inspection every five years. Palo Alto may have health facilities subject to this policy. Hospitals Health & Safety Code § 1226.5 DRAFT Appendix A -- Table of Historic California Earthquake Risk Reduction Legislation 34 Type of Legislative Approach Short Title Year Description Relevance to Palo Alto Program Update Targeted Use or Structure Type Special Programs Status and Reference Statute or Code SB 597 (Alquist) 1992 Required the state architect to develop seismic retrofit guidelines and standards for certain buildings enclosing more than 20,000 square feet of floor area with concrete or reinforced masonry column construction. Although outdated, this law provides background guidance on the importance and potential pathways to retrofitting this particular high risk category of large commercial structures. Palo Alto may have qualifying structures in its jurisdiction. Concrete Chapter 1079, Statutes of 1992 SB 119 (Hart) 1992 Enacted the Higher Education Facilities Bond Act of June 1992 and required five-year capital outlay plans at colleges and universities to include a schedule that prioritized the seismic retrofitting needed to significantly reduce seismic hazards. Palo Alto may have relevant facilities within its jurisdiction. Public Buildings and Universities Chapter 13, Statutes of 1992 Seismic Retrofit Bond Act (California Proposition 192) 1996 Authorized $2 billion for seismic retrofitting, including $650 million for seismic retrofitting of toll bridges. Palo Alto may have relevant facilities within its jurisdiction. Bridges DRAFT Appendix A -- Table of Historic California Earthquake Risk Reduction Legislation 35 Type of Legislative Approach Short Title Year Description Relevance to Palo Alto Program Update Targeted Use or Structure Type Special Programs Status and Reference Statute or Code Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act 2006 Essential Facility Seismic Safety Program. Provided $125 million funding for seismic retrofit work on local bridges, ramps, and overpasses; established Local Bridge Seismic Retrofit Account. Palo Alto may have been affected by some of the projects resulting from this law, though the budget is now exhausted. Bridges and Roads Proposition 1B, Government Code §8879.23(i) General Obligation Bonds A city or a city and county may incur indebtedness pursuant for seismic strengthening of unreinforced buildings and other buildings. Proceeds of bonds authorized pursuant to this section may be used to make loans to public entities or owners of private buildings. Palo Alto may issue bonds to create funds for use in loan programs to cover seismic retrofit costs for publically- or privately- owned buildings as long as it can justify the public purpose of the work. Financing Government Code Section 43600-43638 AB 964 (Aroner) Required the California Earthquake Authority to establish, in the operational rules of the Earthquake Loss Mitigation Fund, a plan for the expedited expansion of the residential retrofit program statewide. CEA has broad authority to spend ELMF funds on physical mitigation improvements related to 1-4 unit dwellings. Currently Palo Alto is not in the program but it could apply to be part of a future pilot phase. Small Residential Chapter 715, Statutes of 1999 DRAFT Appendix A -- Table of Historic California Earthquake Risk Reduction Legislation 36 Type of Legislative Approach Short Title Year Description Relevance to Palo Alto Program Update Targeted Use or Structure Type Special Programs Status and Reference Statute or Code Automatic Gas Shut Off Valves Authorized local governments to adopt ordinances requiring installation of earthquake sensitive gas shutoff devices in buildings; allowed Division of the State Architect to establish a certification procedure for installation. Palo Alto does not require gas shut off valves but could do so. Utilities Health and Safety Code §§19180-83 & §§19200-05 AB 3249 (Katz) Required private schools constructed after July 1, 1987 to have plans that meet applicable code standards. Required their plans to be reviewed by a structural engineer, and that the project’s design professionals periodically review the construction. Palo Alto may have relevant schools in its jurisdiction, and their status is unknown. The City of San Francisco identified earthquake vulnerability of private schools as a major public concern and recently passed a mandatory evaluation ordinance. Private Schools Chapter 439, Statutes of 1986 DRAFT Appendix A -- Table of Historic California Earthquake Risk Reduction Legislation 37 Type of Legislative Approach Short Title Year Description Relevance to Palo Alto Program Update Targeted Use or Structure Type Special Programs Status and Reference Statute or Code AB 2959 (Klehs) Required the Seismic Safety Commission to develop, adopt, and publish a Homeowner’s Guide to Earthquake Preparedness by January 1, 1992 (SSC 97-01) This pamphlet is regularly exchanged from seller to buyer in smaller residential real estate transactions, as and by state law, doing so meets disclosure requirements. Palo Alto currently provides a link to this document on the Building Inspection website. There is high potential to improve this process so that homeowners pay attention the information in the pamphlet. Education Chapter 1499, Statutes of 1990 AB 1968 (Areias) Required the Seismic Safety Commission to develop, adopt, and publish a Commercial Property Owner’s Guide to Earthquake Safety for distribution to real estate licensees. Palo Alto property owners are required to provide this pamphlet to a buyer at sale. Palo Alto currently provides a link to this document on the Building Inspection website. Education Chapter 859, Statutes of 1991 Natural Disaster Assistance Act Provided state financial assistance for recovery efforts to counties, cities and/or special districts after a state disaster has been proclaimed. Palo Alto would be eligible for applying for these funds following a local event. Recovery Government Code §8680 DRAFT Appendix A -- Table of Historic California Earthquake Risk Reduction Legislation 38 Type of Legislative Approach Short Title Year Description Relevance to Palo Alto Program Update Targeted Use or Structure Type Special Programs Status and Reference Statute or Code AB 1890 (Cortese) Required new and replacement water heaters to be braced and anchored. Properties in Palo Alto are required to have two seismic straps on their water heater per CPC 508.2. Status of non- inspected older water heaters unknown. Utilities Chapter 951, Statutes of 1989 SB 1742 (L. Greene) Required local agencies to review the structural design and construction of certain bridges, and required the Caltrans director to establish a statewide priority list for retrofit projects based on these reviews. Palo Alto may have infrastructure subject to this policy. Bridges and Roads Chapter 1082, Statutes of 1990 ACR 96 (Perino) Requested the Seismic Safety Commission to study the problem of mobile-home bracing and make recommendations to the Department of Housing and Community Development for implementation. Resulting reports provide information relevant to planning effective mobile homes policies. Mobile Homes Resolution Chapter 99, Statutes of 1980 DRAFT Appendix A -- Table of Historic California Earthquake Risk Reduction Legislation 39 Type of Legislative Approach Short Title Year Description Relevance to Palo Alto Program Update Targeted Use or Structure Type Special Programs Status and Reference Statute or Code AB 631 (Bradley) Required the Department of Housing and Community Development to adopt regulations governing the installation of earthquake- resistant bracing systems on manufactured homes or mobile homes. Palo Alto may have health facilities subject to this policy. Mobile Homes Chapter 304, Statutes of 1989 AB 958 (Areias) Directed the Seismic Safety Commission to administer a privately funded task force, with specified membership, to consider the development of seismic safety building guidelines for the use of state and local governmental agencies in evaluating applications for the construction of new cellular facilities. Palo Alto may have relevant facilities within its jurisdiction. Telecommuni- cations Chapter 813, Statutes of 1991 DRAFT Appendix A -- Table of Historic California Earthquake Risk Reduction Legislation 40 Type of Legislative Approach Short Title Year Description Relevance to Palo Alto Program Update Targeted Use or Structure Type Special Programs Status and Reference Statute or Code California Earthquake Authority Created the California Earthquake Authority and authorized CEA to issues policies of basic earthquake insurance. Residential renters and owners of Palo Alto 1-4 unit properties are eligible to purchase policies through CEA. Rates of insurance uptake average about 10% statewide. The level of uptake in Palo Alto is not known but could be researched and potentially improved through educational programs or partnerships with CEA. Insurance Insurance Code §§ 10089.5 - 10089.54 Disaster Recovery Reconstruction Act Authorized and otherwise enabled cities, counties, and other entities to prepare in advance of a disaster for the expeditious and orderly recovery and reconstruction of the community or region; Includes plans and ordinances facilitating recovery and reconstruction and contingency plan of action and organization for short -term and long-term recovery and reconstruction to be instituted after a disaster. This legislation sets out relevant authorities and guidance for effective pre- disaster emergency management and recovery planning. Recovery Government Code §8877.1 DRAFT Appendix A -- Table of Historic California Earthquake Risk Reduction Legislation 41 Type of Legislative Approach Short Title Year Description Relevance to Palo Alto Program Update Targeted Use or Structure Type Special Programs Status and Reference Statute or Code Public School Tilt-Up Concrete Inventory Required the Department of General Services to conduct an inventory of public school buildings that are concrete tilt -up or have non-wood frame walls that do not meet requirements of the 1976 UBC, by Dec. 31, 2001. Palo Alto may have relevant facilities within its jurisdiction. Concrete Education Code §17317 SB 1122 (Alarcón) Required the Office of Emergency Services, in cooperation with the State Department of Education, the Department of General Services, and the Seismic Safety Commission, to develop an educational pamphlet for use by grades K- 14 personnel to identify and mitigate the risks posed by nonstructural earthquake hazards. Palo Alto could use this pamphlet or more recent versions in a public education campaign in coordination with local schools. Education Chapter 294, Statutes of 1999 DRAFT Appendix A -- Table of Historic California Earthquake Risk Reduction Legislation 42 Type of Legislative Approach Short Title Year Description Relevance to Palo Alto Program Update Targeted Use or Structure Type Special Programs Status and Reference Statute or Code SB 577 (Rosenthal) Replaced references to earthquake sensitive or seismic gas shutoff valves with the term earthquake sensitive or seismic gas shutoff devices. Also revised the bracing requirements for water heaters to apply to all new and replacement water heaters, and all existing residential water heaters; required any water heater to be secured in accordance with the California Plumbing Code. Provisions for seismic strapping of water heaters are contained in CPC 508.2. Utilities Chapter 152, Statutes of 1996 APPENDIX B Table of Contemporary California Earthquake Risk Reduction Legislation DRAFT Appendix B -- Table of Contemporary California Earthquake Risk Reduction Legislation 43 *Sources: CSSC, 2009; LegInfo, 2016. Type of Legislative Approach Short Title Description Relevance to Palo Alto Program Update Targeted Use or Structure Type Special Programs Status and Reference Statute or Code AB 428 -- Income Taxes Credit: for Seismic Retrofits (Nazarian) This bill allows a tax credit in an amount equal to a specified percent of costs incurred by a qualified taxpayer for any seismic retrofit construction on a qualified building. Requires certification from the appropriate jurisdiction with authority for building code enforcement that the building is an at-risk property. If a future version is passed and funded, Palo Alto building owners -- on a first come first serve basis statewide -- could receive up to 30 percent tax credit on pre-approved eligible seismic mitigation investments. Any Vetoed by Governor for financial reasons. DRAFT Appendix B -- Table of Contemporary California Earthquake Risk Reduction Legislation 44 *Sources: CSSC, 2009; LegInfo, 2016. Type of Legislative Approach Short Title Description Relevance to Palo Alto Program Update Targeted Use or Structure Type Special Programs Status and Reference Statute or Code SB 494 -- Seismic Safety and Earthquake-Related Programs (Hill) This bill creates the California Earthquake Safety Fund. Upon appropriation by the Legislature, the moneys in the fund shall be used for seismic safety and earthquake-related programs, including the earthquake early warning system. The bill authorizes the fund to accept federal funds, funds from revenue bonds, local funds, and funds from private sources for purposes of carrying out its provisions. This bill also requires the identification of funding of the earthquake early warning system to occur by July 1, 2016, and makes conforming changes. Sponsored by Palo Alto’s District Assembly Member. If this program is funded, Palo Alto could advocate for local public and private sector involvement in the state's Earthquake Early Warning System. Early Warning System Signed by Governor October 2015 – Chapter 799, Statutes of 2015 DRAFT Appendix B -- Table of Contemporary California Earthquake Risk Reduction Legislation 45 *Sources: CSSC, 2009; LegInfo, 2016. Type of Legislative Approach Short Title Description Relevance to Palo Alto Program Update Targeted Use or Structure Type Special Programs Status and Reference Statute or Code SB 1205 -- Commercial Earthquake Risk Management Courses (Monning) Requires an existing California Department of Insurance (CDI) board to develop or recommend educational courses for agents and brokers on commercial earthquake risk management. Recommendations and resources materials will likely be created within a few years that could assist Palo Alto in promoting greater awareness and action among commercial property agents and owners. Education Signed by Governor August 2014 – Chapter 252 SB 602 -- California Earthquake Authority: Property Secured Mitigation Program (Monning) This bill would authorize the CEA to establish a state-wide program to provide property assessment financing for seismic retrofits. This bill would create the authority for another PACE- type funding mechanism that cities could use to offer loans to owners for seismic mitigation work, to be paid off through higher property tax assessment over the course of 20 years. Small Residential Pending DRAFT Appendix B -- Table of Contemporary California Earthquake Risk Reduction Legislation 46 *Sources: CSSC, 2009; LegInfo, 2016. Type of Legislative Approach Short Title Description Relevance to Palo Alto Program Update Targeted Use or Structure Type Special Programs Status and Reference Statute or Code AB 1429 -- Earthquake Mitigation Retrofit Program: 5 to 10 Dwelling Units (Chui) This bill requires the CRMP to implement a grant program that would give a grant to a qualifying applicant who owns a residential structure that contains between five and ten dwelling units to defray the owner’s cost of seismic retrofit work to the structure, as specified, if the Legislature appropriates funds for that purpose. If passed and funded, grant funds might be made available to Palo Alto small multi-family residential buildings. Small Multifamily Pending AB 1440 -- Earthquake Mitigation Retrofit Program: Single- Family Residential Structures (Nazarian) This bill requires the CRMP to implement a grant program and give a grant to a qualifying owner of a single- family residential structure to defray the owner’s cost of seismic retrofit work to the structure, as specified, if the Legislature appropriates funds for that purpose. If passed and funded, grant funds might be made available to Palo Alto small residential owners. Small Residential Pending DRAFT Appendix B -- Table of Contemporary California Earthquake Risk Reduction Legislation 47 *Sources: CSSC, 2009; LegInfo, 2016. Type of Legislative Approach Short Title Description Relevance to Palo Alto Program Update Targeted Use or Structure Type Special Programs Status and Reference Statute or Code SB 336 -- California Earthquake Authority: Mitigation Discount (Roth) This bill provides that CEA policyholders who have retrofitted their homes shall enjoy a premium discount or credit of “at least” five percent. If passed, Palo Alto homeowners that purchase earthquake insurance would have greater assurance that premium discounts for mitigation investments would not be reducible below five percent. Small Residential Pending AB 2181 -- Soft-Story Local Program Authorization Authorizes each city, city and county, or county to require that owners assess the earthquake hazard of soft story residential buildings and older concrete residential buildings. Includes concrete residential buildings that were constructed prior to the adoption of local building codes that ensure ductility as potentially hazardous if an earthquake occurs and to initiate programs to inform owners, residents and the public about such dangers. There is no state law that forbids such programs, but this law would have removed any ambiguity that such programs are permitted. Soft-Story Dead in 2014, never heard in committee. APPENDIX C Table Describing Incentives Used in Local Earthquake Risk Reduction Programs Appendix C. Table Describing Incentives Used in Local Earthquake Risk Reduction Programs. Type of Incentive Description Examples of Use Advantages Costs, Issues or Concerns FINANCIAL TOOLS & INCENTIVES General Obligation or Special District Bonds Direct provision of funds for qualifying retrofit work based on voter approval of issuance of new municipal or state debt to be repaid by taxation. This mechanism is commonly used for seismic improvements to infrastructure, but also has been used in URM building programs and for retrofit of historic properties. One URM example is the city of Long Beach, which offered 11.3% interest financing to participating members of a Special District created for URM building owners. Once passed, this type of funding can be distributed over time as provided for in the approved wording. Must be approved by two thirds of voters, which sets a high bar even if there is significant public support. Jurisdictions must administer the allocation of funds and have at times not been able to use all of it. Owner education about the provisions of the program is critical. Owners of highly leveraged buildings and buildings in depressed areas may be unable to meet prerequisite loan-to- value ratio criteria. Retrofits are generally not revenue- generating improvements upon which financing can be leveraged. Grants Direct provision of funds for qualifying retrofit work. CEA's Earthquake Brace & Bolt program for single family homes. Some sources exist for city-scale projects or privately-owned buildings, such as FEMA Pre- Disaster Mitigation Grants. Limited sources exist. Programs can be difficult to manage administratively. Fairness concerns exist over which owners can benefit. Appendix C. Incentives, continued. Type of Incentive Description Examples of Use Advantages Costs, Issues or Concerns Property-Assessed Financing Loans Also known as a Property Assessed Clean Energy (PACE) program, this works as a loan to an individual property owner, transferrable to future owners, where the upfront costs of qualifying work are repaid over a period of approximately 20 years through the owner's property tax assessment. San Francisco's PACE program. Provides an upfront way for owners to access private capital to afford retrofit projects. The loan can be paid off over time through higher rents or at future sale, as well as being transferrable to future owners. Administratively complex for both jurisdictions and owners. Challenges include setting up this complex financing instrument which has heavy involvement of third parties, barriers to owners that want to refinance, and barriers to the transfer of a PACE-financed properties to a new owner. Owners may not need it if affordable regular market capital is available. Lenders may resist allowing an additional lien. Tax Credits Waiver of a portion of a business, parcel, or income tax for a number of years to encourage owners to retrofit. Although vetoed by the Governor, the legislature of California passed AB 428 in 2015, which would have offered up to 30% credit for qualifying retrofit costs. The funding source can be outside the local jurisdiction, and depending on the clarity of program requirements, owners can count on the funds as part of planning their project. Owners would need to be aware of the credit and verify qualifying work and complete all follow up documentation. Mostly benefits owners already intending to retrofit and those with more financial and business sophistication. Appendix C. Incentives, continued. Type of Incentive Description Examples of Use Advantages Costs, Issues or Concerns Real Estate Transfer Tax Rebates Building owners can apply for a rebate of a fraction (usually 1/3, up to a cap) of the amount of the transfer tax owed to the city for a property at sale for any qualifying seismic improvement expenditures made within a certain period before or after transfer of title. This policy has existed in Berkeley since 1991 for residential dwellings up to four units and in San Francisco since 2008 for properties worth $5 million or more. In Berkeley, the program was immediately popular and eventually highly influential in increasing support for other earthquake policies because it touched so many community members and firmly established a tone that the city takes seismic risk seriously and will put its “money where its mouth is.” About half the single-family homes and one third of the smaller rental buildings in Berkeley have claimed the credit, leading to widespread community awareness of seismic safety issues. The jurisdiction forgoes tax revenue. Anecdotally in Berkeley, city officials had no easy way to assess the quality of work done. Some experts suspect that some of the funds went to incomplete or improperly done retrofits. Waivers or Reductions of Building Department Fees Full waivers, fixed, or percentage-based reductions of building permit fee reductions. The Jurisdictions of San Francisco, Berkeley, and Alameda have offered flat or waived plan check fees as an incentive for owners to retrofit their buildings. Oakland currently offers a flat permit fee of $250 for owners of qualified single- family residences to perform seismic retrofits. Modestly reduces the cost of a retrofit project. Easy for city to implement. Perceived by owners as a significant gesture of good will by owners, who may feel it is "the least the city could do." This measure has direct loss of revenue implications for the jurisdiction. Appendix C. Incentives, continued. Type of Incentive Description Examples of Use Advantages Costs, Issues or Concerns Pass Through of Retrofit Costs to Tenants For residential properties in jurisdictions with rent control laws in place, owners who seismically retrofit their buildings could be allowed to pass through all or a fraction the costs of these retrofits to renters in rent-controlled units, amortized over a particular time period such as 10 years. Berkeley is 100% pass- through, San Francisco is 50%, and Oakland is %75. Perceived as fair by owners because tenants that benefit most from the retrofit work pay a share of it. Owners can use this anticipated source of revenue as a basis for securing a loan. Tenants with fixed or low incomes might suffer hardship with the added costs, although hardship provisions can lessen those effects. Special District or Historic Designation Tax Reductions Creation of Mello-Roos, Mills Act, historic or other special districts that are then eligible for special loans, grants, or tax credits. For URM buildings, the jurisdictions of St. Helena and West Hollywood used Mello-Roos funding. Provides a clear way for a local jurisdiction to provide direct funding or special financing rates for privately-owned vulnerable properties. Can be difficult for jurisdictions to initiate and carry out. Owners must join the special district at the outset or will be left out of future funding availability. POLICY INCENTIVES Density or Intensity Bonuses Specific increases in the maximum allowable building density or intensity to help offset the added costs of seismic upgrades. Palo Alto’s Floor Area Ratio bonus program. Owners that invest in a retrofit can expand their projects in order to increase future revenue. Typically, feasible only in areas of high growth. Sometimes controversial because of potential community impacts such as increased traffic, parking needs, and rental rates. Appendix C. Incentives, continued. Type of Incentive Description Examples of Use Advantages Costs, Issues or Concerns Exemptions for Non- Conformities Relief from timelines or waivers of required work such as fire resistance upgrades and sprinklers, Title 24 energy analysis and upgrades, parking, setback or other current code measures that would otherwise be triggered by the size of the project being undertaken for projects involving qualifying retrofit work. None identified. Offering relief from what may be expensive rehabilitation of nonconforming uses can make seismic retrofits easier to design and more affordable. May be viewed as an excessive concession to owners among some members of the public. Zoning Incentives Specific concessions regarding encroachment into setbacks, increased allowable floor/area ratios (FAR), height limits, or onsite parking requirements to help offset the added costs of seismic upgrades. Since 1986, Palo Alto allowed owners of included buildings in the downtown area to expand the floor area if the owner performed seismic upgrades. Buildings were also exempted from onsite parking requirements and fees for offsite parking. Useful when bond financing options are prohibitively costly or not much more attractive than private credit terms. Most likely to work when zoning plans in the community generally call for limited to no growth. Costs to the city are mainly in the form of technical and design cost review of proposed projects. Similarly-situated properties must be treated alike so as to avoid claims of "spot zoning." Citizens may object to special treatment for work that could be seen as essential anyhow. Not likely to work in locations with little development pressure or where the community favors growth. Appendix C. Incentives, continued. Type of Incentive Description Examples of Use Advantages Costs, Issues or Concerns Condominium Conversion Assistance Process expediting for condo conversion for properties that seismically retrofit. None identified. In jurisdictions where condo conversation rates are capped or allocated by lottery, offering priority to buildings that retrofit could be an effective tool to promote seismic upgrading of multifamily buildings. May negatively impact other housing affordability goals. Only available to owners that can afford it, unless accompanied by other assistance programs. Exemption from Future Retrofit Requirements Relief from imposition of future retrofit requirements for a certain period following completion of qualifying seismic work. The City of Berkeley offered a 15-year exemption from future retrofit requirements for soft-story wood frame properties that did a retrofit concurrent with its mandatory evaluation program. This can motivate owners to complete retrofit work sooner rather than later in order to reduce uncertainty about future city policies, and allows owners to better anticipate business expenses over a longer term. The jurisdiction could not easily impose new regulation on exempted properties, even if such policies became warranted by new technologies or knowledge. Transfer of Development Rights (TDR) TDR allow owners to transfer unused development rights that are comparable to the value of the retrofit to another site. Very commonly used for historic preservation, including in Palo Alto. Useful when the use of the building in question is not likely to generate added value to justify the costs of the retrofit work. This is most useful when retrofit costs can be particularly high and there are natural or regulatory use restrictions. Careful analysis of construction costs is necessary to avoid situations of under- or over- compensation. Appendix C. Incentives, continued. Type of Incentive Description Examples of Use Advantages Costs, Issues or Concerns Expedited Permits, Inspections, and Reviews Prioritization, expediting, or bypassing of certain internal protocols for over the counter permits and inspection processes for projects involving seismic retrofit work. Several Bay Area cities have anecdotally stated that this is their internal policy, but no official records of such were identified. This can relieve the burden of time and hassle for owners in getting permits and inspections, which are a significant source of cost and uncertainty for owners during retrofit projects. Requires flexibility on the part of city staff and plan check consultants. Technical Assistance Case-management style assistance for owners and/or engineers during the process of obtaining financing, complying, permitting, and carrying out retrofit projects. This is different than engineering advice about how to resolve specific technical issues of design. Cities such as Berkeley have found it necessary to maintain additional staff to operate their mitigation programs. A significant portion of their staff time is devoted to owner and engineer consultation. Knowledgeable staff can help owners navigate complex issues such as investigating and applying for incentives (if offered), following guidelines, or addressing the necessary standards. Labor costs to the city for additional staff. Difficulty sustaining project funding and staff continuity over time. APPENDIX D Options for Moving to a Comprehensive, Resilience Approach Appendix D. Options for Moving Towards a Comprehensive Resilience Approach Palo Alto’s current earthquake policy development effort is led by the Building Division and focused on physical upgrade or retrofitting of privately-owned existing structures. In other words, it deals with pre-disaster physical aspects of earthquake vulnerabilities in the current building stock and the kinds of ordinances, code adjustments, and initiatives that could be undertaken to reduce the risks posed by those buildings. Other City of Palo Alto efforts to address earthquake risks and impacts more broadly are the responsibility for instance of the Office of Emergency Services, Fire, Public Works, and Planning departments. These activities are relevant to the present effort because its recommendations are intended to be well-informed by and linked to other related ongoing jurisdictional activities. In the future, Palo Alto has options for broadening the scope of its mitigation efforts. For instance, the City could consider developing a formal Building Occupancy and Resumption Program (BORP) as did San Francisco. It could also investigate creating special programs or requirements for key infrastructure such as cell phone towers, vulnerable building features such as facades, or important building uses such as publicly-owned buildings, private schools, places of worship and large assembly, or post-earthquake shelter facilities. These types of programs aim to create a more comprehensive, integrated approach that places earthquake mitigation within the overall context of community resilience. Jurisdictions can promote comprehensiveness in different ways. Four potential pathways that Palo Alto could pursue, as well as examples of jurisdictional models, are briefly introduced below. Address More Phases of the Disaster Cycle One useful way to think about public policy related to earthquakes is to consider the “Disaster Cycle” (see Figure 1). Some activities primarily take place before an event (e.g., hazard assessment, building code adoption and enforcement, public education campaigns) while others focus on things that happen during a crisis (e.g., emergency response, building re-occupancy inspections). After an event, jurisdictions may operate both short and long term programs as part of managing the overall recovery process (e.g., temporary housing and business resumption efforts). The cycle begins again as cities attempt to learn from the past to better inform plans and programs for the future. Appendix D. Options for Moving Towards a Comprehensive Resilience Approach, continued. Figure 1. Diagram of the Disaster Cycle and examples of local level programs that address different phases. Actions in all of these of phases contribute to the overall community goal of Many different definitions exist for this term, but for the purposes of this report it can be summarized as the local to, and recover as completely as possible in long acute shocks, one of which are avoid, survive, and thrive as best they can in the midst of many current and potential challenges and threats. Integrate Earthquake Efforts into Another way to address disaster resilience more broadly is to create plans and programs that simultaneously address a large suite of physical threats. Many preparedness, mitigation, response and recovery activities are similar for different types of disa from floods to blast to bioterrorism to earthquakes. FEMA and many jurisdictions have embraced the concept of multi and savings through coordination, cross improved communication. relate to this –the Local Hazard Mitigation Plan process and FEMA Pre Mitigation Grants –were described in the Task 2 report. . Options for Moving Towards a Comprehensive Resilience Approach, continued. . Diagram of the Disaster Cycle and examples of local level programs that address Actions in all of these of phases contribute to the overall community goal of definitions exist for this term, but for the purposes of this report it can local capacity to be effectively protected from, respond quickly to, and recover as completely as possible in long-term from chronic stresses as well as , one of which are earthquakes. In some sense, all communities want to avoid, survive, and thrive as best they can in the midst of many current and potential Integrate Earthquake Efforts into Multi-Hazard Planning and Program way to address disaster resilience more broadly is to create plans and programs that simultaneously address a large suite of physical threats. Many preparedness, mitigation, response and recovery activities are similar for different types of disa from floods to blast to bioterrorism to earthquakes. FEMA and many jurisdictions have embraced the concept of multi-hazard planning in order to achieve potential synergies and savings through coordination, cross-functionality, eliminating redundanci improved communication. The two main federal programs for local jurisdictions that the Local Hazard Mitigation Plan process and FEMA Pre-Disaster were described in the Task 2 report. Palo Alto could launch an effo . Options for Moving Towards a Comprehensive Resilience Approach, continued. . Diagram of the Disaster Cycle and examples of local level programs that address Actions in all of these of phases contribute to the overall community goal of resilience. definitions exist for this term, but for the purposes of this report it can capacity to be effectively protected from, respond quickly term from chronic stresses as well as In some sense, all communities want to avoid, survive, and thrive as best they can in the midst of many current and potential Hazard Planning and Programs way to address disaster resilience more broadly is to create plans and programs that simultaneously address a large suite of physical threats. Many preparedness, mitigation, response and recovery activities are similar for different types of disasters, from floods to blast to bioterrorism to earthquakes. FEMA and many jurisdictions have hazard planning in order to achieve potential synergies functionality, eliminating redundancies, and The two main federal programs for local jurisdictions that Disaster Palo Alto could launch an effort Appendix D. Options for Moving Towards a Comprehensive Resilience Approach, continued. to evaluate opportunities for leveraging and increasing alignment of its earthquake programming with other multi-hazard mitigation efforts. Create Linkages with Sustainability, Energy and Climate Adaptation Issues Not all environmental threats to resilience are quick to arrive. Yet another dimension Palo Alto could build connections between its disaster mitigation efforts and issues of sustainability, environmental health, green tech, and climate change adaptation. The interrelationships among these issues are clear. Modification of both physical and social practices related to environmental trends could potentially enhance or work against disaster preparedness, depending on how wisely such changes ae managed. Debris and demolition following earthquakes can be a major environmental concern, with significant greenhouse gas and carbon footprint implications. Research engineers are actively working on ways to estimate the carbon implications of debris from demolished structures after an earthquake, such as through the FEMA P-58 methodology. Expand Scope to Address Overall Community Resilience Social, cultural, and economic vulnerabilities and social justice and equity concerns are clearly outside the scope of the present effort. However, it would be remiss to provide Palo Alto guidance about development of new programs for earthquake mitigation without mentioning that many leading cities have moved towards nesting their earthquake resilience activities within very broad, longer term overall community resilience assessment, planning, and programming initiatives. The connection between overall community resilience and earthquake program effectiveness is now firmly established, as exampled by a proliferation of initiatives briefly described below. The ideological and programmatic shift to the concept of community resilience broadly defined was accelerated by a large infusion of money, technical assistance, and outreach from the Rockefeller Foundation’s 100 Resilient Cities initiative (100RC1) in 2012. This ground breaking effort involved three rounds of applications from which 66 cities so far worldwide have been selected. San Francisco, Berkeley, Oakland, and Los Angeles were selected in the first round. Rockefeller Resilient Cities were chosen because they already were comprehensive leading cities in terms of their resilience efforts. Palo Alto applied to the program but was not selected. A core feature of the 100RC membership is funding to pay the salary of a Chief Resilience Officer for two years. Patrick Otellini of San Francisco had the honor of being the first Chief Resilience Officer (CRO) in the world. The two other main benefits of the 1 http://www.100resilientcities.org/ (Accessed January 11, 2016). Appendix D. Options for Moving Towards a Comprehensive Resilience Approach, continued. program are access to an online resilience platform and information repository and increased connectedness with a network of other 100RC cities and their CROs. Other significant federal and regional resources are being devoted to helping local jurisdictions promote overall community resilience. Many useful technical guides and potential partners for Palo Alto exist. Important national groups include the National Institutes of Building Sciences Community Resilience Initiative, which has produced a comprehensive resilience planning guide for cities (NIST, 2015), and the Community Regional Resilience Institute (CARRI).2 On the local level, the San Francisco Planning and Urban Research organization through its Resilient City initiative has conducted a series of collaborative planning efforts and resulting reports that address building performance goals, recovery strategy, and tactical recommendations for San Francisco in pursuing a specific set of resilience goals (SPUR, 2008). An example recovery objective SPUR endorsed is to have 95% of San Francisco residents able to shelter-in-place following a major event (SPUR, 2011). Additionally, ABAG has recently created a resilience policy tracking database, searchable and available online,3 and the Los Angeles Community Disaster Resilience project4 offers a well-documented model of multi-issue regional coordinated effort. 2 Information available at: http://www.resilientus.org/ (Accessed February 25, 2016). 3 Available at: http://abag.ca.gov/resilience/policies.html (Accessed February 25, 2016). 4 Information available at: http://www.laresilience.org/ (Accessed February 25, 2016). APPENDIX E Retrofit Concept Designs for 12 Prototype Buildings Building 1 – Wood Light Frame (W1) 2-story, 5,320 sq.ft, 1960, 4 unit multi-family (RES3B-3D), one unit on ground floor, three on second floor, partial parking on ground floor Conventional framing, no plywood shearwalls, post and beam framing and open front in garage Retrofit Basis of Design: IEBC A4 Structural Retrofit Elements 1. Install plywood sheathing, hold downs and anchor bolts on existing walls in garage area 2. Install new moment frames (2) to balance open front (w/ new footing). Use W12x50 beam and W14x68 columns. 3. Install new collector along moment frame line Collateral Impacts 1. Remove and replace drywall at shear walls 2. Remove and replace slab on grade at moment frame 3. Remove and replace drywall along moment frame collector 4. Re-route SS drain locally 5. Re-route water line locally 6. Re-route electrical locally Building 2 – Multi-Story, Multi-Unit Wood-Frame Residential (W1A) 2-story, 9,500 sq.ft, 1960, 10 unit multi-family (COM 3C-3F), 2 units on ground floor 8 on second floor, partial parking on ground floor Conventional framing, no plywood shearwalls, post and beam framing and open front in garage Retrofit Basis of Design: IEBC A4 Structural Retrofit Elements 1. Install plywood sheathing, hold downs and anchor bolts on existing walls in garage area 2. Install new moment frames (2) to balance open front (w/ new footing). Use W12x50 beam and W14x68 columns. 3. Install new collector along moment frame line Collateral Impacts 1. Remove and replace drywall at shear walls 2. Remove and replace slab on grade at moment frame 3. Remove and replace drywall along moment frame collector 4. Re-route SS drain locally 5. Re-route water line locally 6. Re-route electrical locally Building 3 – Multi-Story, Multi-Unit Wood-Frame Residential (W1A) 3-story, 30,000 sq.ft, 1960, 34 unit multi-family (COM 3C-3F), 4 units on ground floor, partial parking on ground floor Conventional framing, no plywood shearwalls, post and beam framing and open front in garage Retrofit Basis of Design: IEBC A4 Structural Retrofit Elements 1. Install plywood sheathing, hold downs and anchor bolts on existing walls in garage area 2. Install new moment frames (4) to balance open front (w/ new footing). Use W12x50 beam and W14x68 columns. 3. Install new collector along moment frame line Collateral Impacts 1. Remove and replace drywall at shear walls 2. Remove and replace slab on grade at moment frame 3. Remove and replace drywall along moment frame collector 4. Re-route SS drain locally 5. Re-route water line locally 6. Re-route electrical locally Building 4 – Commercial and Industrial Wood Frame (W2) 2-story, 12,000 sq.ft, 1960, commercial ground floor retail, second floor office (COM1, COM2, COM3, COM4, COM7, COM8) Conventional framing, no plywood shearwalls, post and beam interior framing, open front at ground floor Retrofit Basis of Design: IEBC A4 Structural Retrofit Elements 1. Install plywood sheathing, hold downs and anchor bolts on existing walls in retail area 2. Install new moment frames (3) in weak direction (w/ new footing). Use W12x50 beam and W14x68 columns. 3. Install new collector along moment frame line Collateral Impacts 1. Remove and replace drywall at shear walls 2. Remove and replace slab on grade and flooring at moment frame 3. Remove and replace drywall along moment frame collector 4. Remove and replace casework in retail space 5. Re-route SS drain locally 6. Re-route water line locally 7. Re-route electrical locally Building 5 – Steel Moment Frame (S1) 2-story, 43,900 sq.ft, commercial office suites (COM1-COM10, IND1-IND6) Two-bay perimeter moment frames, steel gravity framing, concrete fill over metal deck floor and roof, Retrofit Basis of Design: ASCE 41, BPOE Structural Retrofit Elements 1. Install braces in existing moment frame bays. Use HSS6x6x1/2 braces at top story and HSS8x8x1/2 braces at first story 2. Enlarge pile caps and install new micropiles at braced frames (8 at each story) 3. Improve collectors at some braced frame lines Collateral Impacts 1. Remove and replace suspended ceiling at braced frame bays 2. Remove furring wall at braced frame bays 3. Chip down concrete fill locally in brace frame bays 4. Remove and replace slab on grade and flooring at new foundations 5. Remove and replace suspended ceiling along new frame collector 6. Re-route SS drain locally 7. Re-route water line locally 8. Re-route electrical locally NOTE: GRAVITY BEAMS NOT SHOWN FOR CLARITY Building 6 – Concrete Shear Wall (C2) 1-story, 5,000 sq.ft, 1920, commercial retail (COM1-COM10, IND1-IND6) Concrete perimeter walls, post and beam interior framing, wood roof diaphragm sheathing, open front Retrofit Basis of Design: ASCE 41, BPOE Structural Retrofit Elements 1. Install roof-to-wall anchors 2. Install new plywood sheathing over existing roof sheathing 3. Install new moment frames (2) in weak direction (w/ new footings). Use W12x50 beam and W14x68 columns. 4. Install new collector along moment frame lines Collateral Impacts 1. Remove and replace ceiling along concrete walls 2. Remove and replace slab on grade and flooring at moment frame 3. Remove and replace ceiling along moment frame collector 4. Re-route SS drain locally 5. Re-route water line locally 6. Re-route electrical locally 7. Remove and replace roofing Building 7 – Concrete Shear Wall (C2) 2-story, 17,280 sq.ft, 1960, commercial ground floor retail, second floor office (COM1-COM10, IND1-IND6) Concrete perimeter walls, flat plate floor and roof framing, tall first story Retrofit Basis of Design: ASCE 41, BPOE Structural Retrofit Elements 1. Install FRP column wrap at discontinuous wall 2. Install new collectors below 2nd floor and roof slab 3. Install additional shear walls (w/ new foundation), 3 bays at each story 4. Shore slab adjacent to walls Collateral Impacts 1. Remove and replace drywall at columns to be wrapped 2. Remove and replace storefront locally at columns to be wrapped 3. Remove and replace slab on grade and flooring at new shear walls 4. Remove and replace ceiling along new collectors 5. Remove and replace furring walls at new shear walls 6. Re-route SS drain multiple locations 7. Re-route water line multiple locations 8. Re-route electrical multiple locations (N) CONC. SHEAR WALL W/ GRADE BEAM AND MICROPILES, TYP., SEE 33 (N) COLLECTORS BELOW 2ND AND ROOF, TYP., SEE 34 Foundation/Roof/ (E) PILE CAP, TYP. Building 8 – Tilt-up Concrete Shear Walls (PC1) 1-story, 20,000 sq.ft, 1960, commercial office/warehouse Precast concrete perimeter wall panels, post and beam interior framing, wood roof diaphragm sheathing, building has reentrant corner Retrofit standard: IEBC A2 Structural Retrofit Elements 1. Install roof-to-wall anchors 2. Install new plywood roof sheathing around perimeter bay 3. Install new subpurlin continuity ties 4. Install new collectors at reentrant corner Collateral Impacts 1. Remove and replace ceiling along perimeter 2. Remove and replace roofing 3. Re-route SS drain locally 4. Re-route water line locally 5. Re-route electrical locally Building 9 – Tilt-up Concrete Shear Walls (PC1) 2-story, 46,400 sq.ft, 1960, commercial office/warehouse Precast concrete perimeter wall panels, concrete fill on metal deck at second floor with steel framing and steel columns below, wood roof sheathing with wood beam and girder framing and steel columns below. Retrofit standard: IEBC A2 Structural Retrofit Elements 1. Install floor-to-wall anchors 2. Install roof-to-wall anchors 3. Install new plywood roof sheathing around perimeter bay 4. Install new subpurlin continuity ties at roof 5. Improve girder connection capacity at roof Collateral Impacts 1. Remove and replace ceiling along perimeter on both floors 2. Remove and replace roofing 3. Re-route SS drain locally 4. Re-route water line locally 5. Re-route electrical locally Building 10 – Reinforced Masonry Bearing Wall (RM1) 1-story, 2,750 sq.ft, 1950, commercial retail (COM1-COM5, COM8, IND1-IND6) CMU perimeter walls (3 sides), post and beam interior framing, wood roof sheathing, tall story, open front. Retrofit Basis of Design: ASCE 41, BPOE Structural Retrofit Elements 1. Install roof-to-wall anchors 2. Install new purlin and joist continuity ties 3. Install new plywood roof sheathing 4. Install new steel braced frame to balance open front (w/ new footings). Use W24x76 beam, W12x96 columns, and HSS6x6x1/2 braces. 5. Install new collector at braced frame 6. Install new supplemental girder supports (on new footings) Collateral Impacts 1. Remove and replace ceiling along perimeter 2. Remove and replace slab on grade and flooring at braced frame 3. Remove and replace roofing 4. Re-route SS drain locally 5. Re-route water line locally 6. Re-route electrical locally Building 11 – Reinforced Masonry Bearing Wall (RM1) 2-story, 12,000 sq.ft, commercial office suites (RES 3D-3F, RES4, RES5, RES6, COM1-COM9, IND1- IND6) CMU perimeter walls (3 sides), post and beam interior framing, wood floor and roof sheathing, window wall on street side Retrofit Basis of Design: ASCE 41, BPOE Structural Retrofit Elements 1. Install floor-to-wall anchors 2. Install roof-to-wall anchors 3. Install new purlin continuity ties 4. Install collector to existing masonry wall at roof and second floor 5. Install new plywood roof sheathing 6. Install plywood shear walls perpendicular to open front to break up diaphragm (w/ new grade beams) Collateral Impacts 1. Remove and replace ceiling along perimeter at both floors 2. Remove and replace slab on grade and flooring at shear walls 3. Remove and replace roofing 4. Re-route SS drain locally 5. Re-route water line locally 6. Re-route electrical locally Building 12 – Unreinforced Masonry Bearing Wall (URM) 1-story, 5,000 sq.ft, retail/assembly (COM1, COM2, COM3, COM4, COM5, COM8) URM perimeter walls (3 sides), wood post and beam interior framing with joists (flat roof) or trusses (pitched roof), wood roof sheathing, window wall on street side Retrofit Basis of Design: IEBC A1 Structural Retrofit Elements 1. Roof-to-wall ties 2. Supplemental girder support 3. Install new moment frame at open front and additional frame at interior (2 total w/ footings). Use W12x50 beam and W14x68 columns. 4. Install new collector along moment frame line 5. Parapet bracing 6. Install new plywood roof sheathing Collateral Impacts 1. Remove and replace ceiling along masonry walls 2. Remove and replace furring wall locally at supplemental supports 3. Remove and replace flooring and slab on grade at moment frame 4. Remove and replace ceiling 5. Remove and replace roofing 6. Re-route electrical locally Typical Retrofit Details APPENDIX F Retrofit Cost Estimates for 12 Prototype Buildings Date: May 9, 2016 & revised on November 9, 2016 City of Palo Alto - Seismic Risk Mitigation Replacement and Retrofit Cost Project: City of Palo Alto - Seismic Risk Mitigation Title: Replacement and Retrofit Cost Estimate Date: May 9, 2016 & revised on November 9, 2016 Proposed Hazus Default Full Replacement Cost Models Proposed Hazus Default Full Replacement Cost Models Project: City of Palo Alto - Seismic Risk Mitigation Title: Replacement and Retrofit Cost Estimate Date: May 9, 2016 & revised on November 9, 2016 Hazus  Occupancy  Class Definition Average $/SF  Cost of New  Bldg. ‐ 2016  Costs Demo &  Minimal  Sitework (5'  around Bldg.)  $/SF Average $/SF  of Replaced  Bldg. ‐ 2016  Cost  Soft Cost  Premium2 Average $/SF  of Replaced  Bldg. w/ Soft  Costs ‐ 2016  Cost Retrofit  $/SF ‐ 2016 Soft Cost  Premium2 Average $/SF  of Retrofit w/  Soft Costs ‐  2016 Cost  Ratio RES3A Multi Family Dwelling – duplex $201 $17.50 $219 20%$263 $0 25%$0 N/A RES3B Multi Family Dwelling – triplex/quad $177 $17.50 $195 20%$233 $0 25%$0 N/A RES3C Multi Family Dwelling – 5-9 units $318 $17.50 $335 20%$402 $0 25%$0 N/A RES3D Multi Family Dwelling – 10-19 units $299 $17.50 $316 20%$380 $0 25%$0 N/A RES3E Multi Family Dwelling – 20-49 units $327 $17.50 $344 20%$413 $0 25%$0 N/A RES3F Multi Family Dwelling – 50+ units $308 $17.50 $325 20%$390 $0 25%$0 N/A RES4 Temp. Lodging $335 $17.50 $353 20%$424 $0 25%$0 N/A RES5 Institutional Dormitory $401 $25.00 $426 20%$511 $0 25%$0 N/A RES6 Nursing Home $400 $25.00 $425 20%$510 $0 25%$0 N/A COM1 Retail Trade $241 $17.50 $258 20%$310 $0 25%$0 N/ACOM2 Wholesale Trade $208 $17.50 $225 20%$270 $0 25%$0 N/A COM3 Personal and Repair Services $253 $17.50 $270 20%$324 $0 25%$0 N/ACOM4 Professional/ Technical/Business Service $359 $17.50 $377 20%$452 $0 25%$0 N/A COM5 Banks $442 $25.00 $467 20%$560 $0 25%$0 N/ACOM6 Hospital $595 $35.00 $630 20%$756 $0 25%$0 N/A COM7 Medical Office/Clinic $354 $17.50 $371 20%$445 $0 25%$0 N/ACOM8 Entertainment & Recreation $334 $25.00 $359 20%$431 $0 25%$0 N/A COM9 Theaters $261 $25.00 $286 20%$343 $0 25%$0 N/ACOM10 Parking $112 $17.50 $129 20%$155 $0 25%$0 N/A IND1 Heavy $199 $17.50 $216 20%$260 $0 25%$0 N/AIND2 Light $162 $17.50 $180 20%$216 $0 25%$0 N/A IND3 Food/Drugs/Chemicals $334 $17.50 $352 20%$422 $0 25%$0 N/A IND4 Metals/Minerals Processing $334 $17.50 $352 20%$422 $0 25%$0 N/A IND5 High Technology $366 $17.50 $384 20%$461 $0 25%$0 N/A IND6 Construction $169 $17.50 $186 20%$224 $0 25%$0 N/A REL1 Church $185 $25.00 $210 20%$252 $0 25%$0 N/A AGR1 Agriculture $245 $17.50 $263 20%$315 $0 25%$0 N/A GOV1 General Services $235 $17.50 $253 35%$341 $0 35%$0 N/A GOV2 Emergency Response $414 $25.00 $439 35%$593 $0 35%$0 N/A EDU1 Schools/Libraries $292 $25.00 $317 35%$428 $0 35%$0 N/A EDU2 Colleges/Universities $349 $25.00 $374 35%$505 $0 35%$0 N/A Notes: 1. RS Means average cost includes location factors to adjust national average to Palo Alto of 15% for residential and 11% for commercial. 2. Soft costs include architect and engineer design fees, testing and inspection, utility connection fee, permits, and an allowance for owner change order contingency. Project: City of Palo Alto - Seismic Risk Mitigation Title: Replacement and Retrofit Cost Estimate Date: May 9, 2016 & revised on November 9, 2016 Detailed Estimate Project: City of Palo Alto - Seismic Risk Mitigation Title: Replacement and Retrofit Cost Estimate Date: May 9, 2016 & revised on November 9, 2016 MH MH UNIT TOTAL / UNIT COST MATL EQUIP SUB LABOR MATL EQUIP SUB DIRECT COST COST Building 1 - Wood Light Frame (RES 3B -3D)5,320 SF, 2 story Structural upgrade - See detail 1 LS $0.00 0.00 0.00 31,100.00 $0 $0 $0 $31,100 $31,100 $31,100.00 $31,100 Remover & replace drywall at shear wall area 5 LOC 2.000 carp $86.89 250.00 0.00 0.00 $869 $1,250 $0 $0 $2,119 $524.39 $2,622 Remover & replace SOG - see detail 0.000 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0.00 $0 Remover & replace drywall at moment frame & collector 2 LOC 4.000 carp $86.89 400.00 50.00 0.00 $695 $800 $100 $0 $1,595 $989.77 $1,980 Allowance to reroute SS Drain 2 LS $0.00 0.00 0.00 250.00 $0 $0 $0 $500 $500 $250.00 $500 Allowance to reroute water line 2 LS $0.00 0.00 0.00 150.00 $0 $0 $0 $300 $300 $150.00 $300 Allowance to reroute electrical 2 LS $0.00 0.00 0.00 500.00 $0 $0 $0 $1,000 $1,000 $500.00 $1,000 Paint and patch - final clean-up 2 LS $0.00 0.00 0.00 350.00 $0 $0 $0 $700 $700 $350.00 $700 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0.00 $0 Add for General Conditions & Design Contingency 30% LS $0.00 0.00 0.00 38,201 $0 $0 $0 $11,460 $11,460 $38,201 $11,460 Add for Soft Cost Premium 25% LS 49,662 $49,662 $12,415 Total Construction Cost of: Building 1 - Wood Light Frame (RES 3B -3D) 5,320 SF $1,564 $2,050 $100 $45,060 $48,774 $11.67 $62,100 Building 2 - Multi Unit Wood Frame (COM 3C -3F)9,500 SF, 2 story Structural upgrade - See detail 1 LS $0.00 0.00 0.00 55,400.00 $0 $0 $0 $55,400 $55,400 $55,400.00 $55,400 Remover & replace drywall at shear wall area 4 LOC 2.000 carp $86.89 250.00 0.00 0.00 $695 $1,000 $0 $0 $1,695 $524.39 $2,098 Remover & replace SOG - see detail 0.000 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0.00 $0 Remover & replace drywall at moment frame & collector 2 LOC 6.000 carp $86.89 600.00 50.00 0.00 $1,043 $1,200 $100 $0 $2,343 $1,455.16 $2,910 Allowance to reroute SS Drain 1 LS $0.00 0.00 0.00 750.00 $0 $0 $0 $750 $750 $750.00 $750 Allowance to reroute water line 1 LS $0.00 0.00 0.00 500.00 $0 $0 $0 $500 $500 $500.00 $500 Allowance to reroute electrical 1 LS $0.00 0.00 0.00 1,500.00 $0 $0 $0 $1,500 $1,500 $1,500.00 $1,500 Paint and patch - final clean-up 1 LS $0.00 0.00 0.00 1,000.00 $0 $0 $0 $1,000 $1,000 $1,000.00 $1,000 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0.00 $0 Add for General Conditions & Design Contingency 30% LS $0.00 0.00 0.00 64,158 $0 $0 $0 $19,247 $19,247 $64,158 $19,247 Add for Soft Cost Premium 25% LS 83,405 $83,405 $20,851 Total Construction Cost of: Building 2 - Multi Unit Wood Frame (COM 3C -3F) 9,500 SF $1,738 $2,200 $100 $78,397 $82,435 $10.98 $104,300 Building 3 - Multi Story & Multi Unit Wood Frame (COM 3C -3F) Structural upgrade - See detail 1 LS $0.00 0.00 0.00 85,300.00 $0 $0 $0 $85,300 $85,300 $85,300.00 $85,300 Remover & replace drywall at shear wall area, back wall 4 LOC 2.000 carp $86.89 250.00 0.00 0.00 $695 $1,000 $0 $0 $1,695 $524.39 $2,098 Remover & replace drywall at shear wall area, side wall 5 LOC 4.000 carp $86.89 600.00 0.00 0.00 $1,738 $3,000 $0 $0 $4,738 $1,166.77 $5,834 Remover & replace SOG - see detail 0.000 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0.00 $0 Remover & replace drywall at moment frame & collector 8 LOC 6.000 carp $86.89 600.00 50.00 0.00 $4,171 $4,800 $400 $0 $9,371 $1,455.16 $11,641 Allowance to reroute SS Drain 4 LS $0.00 0.00 0.00 250.00 $0 $0 $0 $1,000 $1,000 $250.00 $1,000 Allowance to reroute water line 4 LS $0.00 0.00 0.00 150.00 $0 $0 $0 $600 $600 $150.00 $600 Allowance to reroute electrical 4 LS $0.00 0.00 0.00 500.00 $0 $0 $0 $2,000 $2,000 $500.00 $2,000 Paint and patch - final clean-up 4 LS $0.00 0.00 0.00 350.00 $0 $0 $0 $1,400 $1,400 $350.00 $1,400 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0.00 $0 Add for General Conditions & Design Contingency 30% LS $0.00 0.00 0.00 109,873 $0 $0 $0 $32,962 $32,962 $109,873 $32,962 Add for Soft Cost Premium 25% LS 142,834 $142,834 $35,709 Total Construction Cost of: Building 3 - Multi Story & Multi Unit Wood Frame (COM 3C -3F)30,000 SF $6,604 $8,800 $400 $123,262 $139,065 $5.95 $178,500 CREW UNIT TOTAL COST 30,000 SF, 3 Story DESCRIPTION QTY UNIT City of Palo Alto - Seismic R6 - 12 21 2016 printed on 12/21/2016 Page 5 Project: City of Palo Alto - Seismic Risk Mitigation Title: Replacement and Retrofit Cost Estimate Date: May 9, 2016 & revised on November 9, 2016 MH MH UNIT TOTAL / UNIT COST MATL EQUIP SUB LABOR MATL EQUIP SUB DIRECT COST COST CREW UNIT TOTAL COST DESCRIPTION QTY UNIT Building 4 - Commercial and Industrial Wood Frame (COM 1, COM 2, COM 3, COM 4, COM 7, COM 8) Structural upgrade - See detail 1 LS $0.00 0.00 0.00 59,100.00 $0 $0 $0 $59,100 $59,100 $59,100.00 $59,100 Remover & replace drywall at shear wall area, side wall 8 LOC 2.000 carp $86.89 250.00 0.00 0.00 $1,390 $2,000 $0 $0 $3,390 $524.39 $4,195 Remover & replace drywall at shear wall area, back wall 2 LOC 8.000 carp $86.89 1,000.00 0.00 0.00 $1,390 $2,000 $0 $0 $3,390 $2,097.54 $4,195 Remover & replace SOG - see detail 0.000 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0.00 $0 Remover & replace drywall at moment frame & collector 4 LOC 8.000 carp $86.89 750.00 50.00 0.00 $2,780 $3,000 $200 $0 $5,980 $1,861.54 $7,446 Remover & replace casework on first floor 3 LOC 4.000 carp $86.89 100.00 0.00 0.00 $1,043 $300 $0 $0 $1,343 $576.77 $1,730 Allowance to reroute SS Drain 4 LS $0.00 0.00 0.00 250.00 $0 $0 $0 $1,000 $1,000 $250.00 $1,000 Allowance to reroute water line 4 LS $0.00 0.00 0.00 150.00 $0 $0 $0 $600 $600 $150.00 $600 Allowance to reroute electrical 4 LS $0.00 0.00 0.00 1,000.00 $0 $0 $0 $4,000 $4,000 $1,000.00 $4,000 Paint and patch, floors - final clean-up 2 LS $0.00 0.00 0.00 1,500.00 $0 $0 $0 $3,000 $3,000 $1,500.00 $3,000 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0.00 $0 Add for General Conditions & Design Contingency 30% LS $0.00 0.00 0.00 85,267 $0 $0 $0 $25,580 $25,580 $85,267 $25,580 Add for Soft Cost Premium 25% LS 110,847 $110,847 $27,712 Total Construction Cost of: Building 4 - Commercial and Industrial Wood Frame (COM 1, COM 2, COM 3, COM 4, COM 7, COM 8)10,000 SF $6,604 $7,300 $200 $93,280 $107,384 $13.86 $138,600 Building 5 - Steel Moment Frame (COM 1 - COM 10, IND 1 - IND 6) Structural upgrade - See detail 1 LS $0.00 0.00 0.00 221,600.0 $0 $0 $0 $221,600 $221,600 $221,600.00 $221,600 Remover & replace suspended ceiling at braced frame bays - both floors 8 LOC 8.000 carp $86.89 400.00 100.00 0.00 $5,561 $3,200 $800 $0 $9,561 $1,507.54 $12,060 Remover furring walls at braced frame bays, both floors 8 LOC 8.000 carp $86.89 600.00 0.00 0.00 $5,561 $4,800 $0 $0 $10,361 $1,625.54 $13,004 Chip down concrete fill locally in braced frame bays, both floors 8 LOC 4.000 clab $60.77 50.00 100.00 0.00 $1,945 $400 $800 $0 $3,145 $497.85 $3,983 Remover & replace suspended ceiling along new frame collector of 2nd floor 4 LOC 4.000 carp $86.89 200.00 50.00 0.00 $1,390 $800 $200 $0 $2,390 $753.77 $3,015 Remover & replace drywall at shear wall area, back wall 2 LOC 8.000 carp $86.89 1,000.00 0.00 0.00 $1,390 $2,000 $0 $0 $3,390 $2,097.54 $4,195 Remover & replace SOG - see detail 0.000 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0.00 $0 Allowance to reroute SS Drain 1 LS $0.00 0.00 0.00 1,000.00 $0 $0 $0 $1,000 $1,000 $1,000.00 $1,000 Allowance to reroute water line 1 LS $0.00 0.00 0.00 1,500.00 $0 $0 $0 $1,500 $1,500 $1,500.00 $1,500 Allowance to reroute electrical 16 LS $0.00 0.00 0.00 750.00 $0 $0 $0 $12,000 $12,000 $750.00 $12,000 Paint and patch, floors - final clean-up 1 LS $0.00 0.00 0.00 5,000.00 $0 $0 $0 $5,000 $5,000 $5,000.00 $5,000 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0.00 $0 Add for General Conditions & Design Contingency 30% LS $0.00 0.00 0.00 277,358 $0 $0 $0 $83,207 $83,207 $277,358 $83,207 Add for Soft Cost Premium 25% LS 360,565 $360,565 $90,141 Total Construction Cost of: Building 5 - Steel Moment Frame (COM 1 - COM 10, IND 1 - IND 6)43,900 SF $15,847 $11,200 $1,800 $324,307 $353,154 $10.27 $450,700 10,000 SF, 2 Story 43,900 SF, 2 Story City of Palo Alto - Seismic R6 - 12 21 2016 printed on 12/21/2016 Page 6 Project: City of Palo Alto - Seismic Risk Mitigation Title: Replacement and Retrofit Cost Estimate Date: May 9, 2016 & revised on November 9, 2016 MH MH UNIT TOTAL / UNIT COST MATL EQUIP SUB LABOR MATL EQUIP SUB DIRECT COST COST CREW UNIT TOTAL COST DESCRIPTION QTY UNIT Building 6 - Concrete Shear Wall (COM 1 - COM 10, IND 1 - IND 6)5,000 SF, 1 Story Structural upgrade - See detail 1 LS $0.00 0.00 0.00 61,300.00 $0 $0 $0 $61,300 $61,300 $61,300.00 $61,300 Remove and replace roof, insulation & roof accessories 5,000 SF 0.082 rofc $74.83 4.60 0.50 0.00 $30,680 $23,000 $2,500 $0 $56,180 $14.12 $70,587 Remove and replace ceiling at the building perimeter for access - 8 to 10 lf wide 300 LF 0.260 carp $86.89 17.00 0.80 0.00 $6,777 $5,100 $240 $0 $12,117 $50.82 $15,247 Allowance to reroute SS Drain 1 LS $0.00 0.00 0.00 500.00 $0 $0 $0 $500 $500 $500.00 $500 Allowance to reroute water line 1 LS $0.00 0.00 0.00 1,000.00 $0 $0 $0 $1,000 $1,000 $1,000.00 $1,000 Allowance to reroute electrical 1 LS $0.00 0.00 0.00 2,000.00 $0 $0 $0 $2,000 $2,000 $2,000.00 $2,000 Paint and patch, floors - final clean-up 1 LS $0.00 0.00 0.00 2,500.00 $0 $0 $0 $2,500 $2,500 $2,500.00 $2,500 Remove & replace casework on first floor 3 LOC 4.000 carp $86.89 100.00 0.00 0.00 $1,043 $300 $0 $0 $1,343 $576.77 $1,730 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0.00 $0 Add for General Conditions & Design Contingency 30% LS $0.00 0.00 0.00 154,865 $0 $0 $0 $46,460 $46,460 $154,865 $46,460 Add for Soft Cost Premium 25% LS 201,325 $201,325 $50,331 Total Construction Cost of: Building 6 - Concrete Shear Wall (COM 1 - COM 10, IND 1 - IND 6)5,000 SF $38,500 $28,400 $2,740 $113,760 $183,399 $50.34 $251,700 Building 7 - Concrete Shear Wall (COM 1 - COM 10, IND 1 - IND 6) Structural upgrade - See detail 1 LS $0.00 0.00 0.00 271,700.00 $0 $0 $0 $271,700 $271,700 $271,700.00 $271,700 Remove and replace drywall furring at new shear walls 1,056 SF 0.096 carp $86.89 4.00 0.50 0.00 $8,808 $4,224 $528 $0 $13,560 $16.32 $17,234 Remove and replace drywall furring at new collectors 3,168 SF 0.096 carp $86.89 4.00 0.50 0.00 $26,425 $12,672 $1,584 $0 $40,681 $16.32 $51,703 Remove and replace drywall furring at columns for new shear walls 576 SF 0.115 carp $86.89 4.80 0.50 0.00 $5,765 $2,765 $288 $0 $8,818 $19.47 $11,213 Remove and replace floor / ceiling finishes at shear walls / collectors 720 LF 0.200 carp $86.89 12.00 2.00 0.00 $12,512 $8,640 $1,440 $0 $22,592 $39.46 $28,410 Remove / replace / patch roof finishes at shear walls / collectors 216 LF 0.250 rofc $74.83 15.00 2.00 0.00 $4,041 $3,240 $432 $0 $7,713 $44.75 $9,667 Allowance to reroute SS Drain 2 LS $0.00 0.00 0.00 1,500.00 $0 $0 $0 $3,000 $3,000 $1,500.00 $3,000 Allowance to reroute water line 6 LS $0.00 0.00 0.00 1,000.00 $0 $0 $0 $6,000 $6,000 $1,000.00 $6,000 Allowance to reroute electrical 6 LS $0.00 0.00 0.00 2,000.00 $0 $0 $0 $12,000 $12,000 $2,000.00 $12,000 Paint and patch - final clean-up 17,280 SF $0.00 0.00 0.00 1.00 $0 $0 $0 $17,280 $17,280 $1.00 $17,280 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0.00 $0 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0.00 $0 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0.00 $0 Add for General Conditions & Design Contingency 30% LS $0.00 0.00 0.00 428,207 $0 $0 $0 $128,462 $128,462 $428,207 $128,462 Add for Soft Cost Premium 25% LS 556,670 $556,670 $139,167 Total Construction Cost of: Building 7 - Concrete Shear Wall (COM 1 - COM 10, IND 1 - IND 6)17,280 SF $57,552 $31,541 $4,272 $438,442 $531,807 $40.27 $695,800 17,280 SF, 2 Story City of Palo Alto - Seismic R6 - 12 21 2016 printed on 12/21/2016 Page 7 Project: City of Palo Alto - Seismic Risk Mitigation Title: Replacement and Retrofit Cost Estimate Date: May 9, 2016 & revised on November 9, 2016 MH MH UNIT TOTAL / UNIT COST MATL EQUIP SUB LABOR MATL EQUIP SUB DIRECT COST COST CREW UNIT TOTAL COST DESCRIPTION QTY UNIT Building 8 - Tilt-up Concrete Shear Walls (COM1-4, COM7, COM9, IND1-IND6)18,435 SF, 1 story Structural upgrade - See detail 1 LS $0.00 0.00 0.00 134,800.0 $0 $0 $0 $134,800 $134,800 $134,800.00 $134,800 Remove and replace roof, insulation and roof accessories around perimeter 11,520 SF 0.082 rofc $74.83 4.60 0.50 0.00 $70,687 $52,992 $5,760 $0 $129,439 $14.12 $162,634 Remove and replace ceiling at the building perimeter for access - 8 to 10 lf wide 528 LF 0.260 carp $86.89 17.00 0.80 0.00 $11,928 $8,976 $422 $0 $21,326 $50.82 $26,835 Allowance to reroute SS Drain 1 LS $0.00 0.00 0.00 1,000.00 $0 $0 $0 $1,000 $1,000 $1,000.00 $1,000 Allowance to reroute water line 1 LS $0.00 0.00 0.00 1,500.00 $0 $0 $0 $1,500 $1,500 $1,500.00 $1,500 Allowance to reroute electrical 1 LS $0.00 0.00 0.00 2,000.00 $0 $0 $0 $2,000 $2,000 $2,000.00 $2,000 Paint and patch - final clean-up 1 LS $0.00 0.00 0.00 2,500.00 $0 $0 $0 $2,500 $2,500 $2,500.00 $2,500 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0.00 $0 Add for General Conditions & Design Contingency 30% LS $0.00 0.00 0.00 331,269 $0 $0 $0 $99,381 $99,381 $331,269 $99,381 Add for Soft Cost Premium 25% LS 430,649 $430,649 $107,662 Total Construction Cost of: 18,435 SF $82,615 $61,968 $6,182 $241,181 $391,946 $29.20 $538,300 Building 9 - Tilt-up Concrete Shear Walls (COM1-4, COM7, COM9, IND1-IND6) Structural upgrade - See detail 1 LS $0.00 0.00 0.00 299,600.0 $0 $0 $0 $299,600 $299,600 $299,600.00 $299,600 Remove and replace roof, insulation and roof accessories around perimeter 11,712 SF 0.082 rofc $74.83 4.60 0.50 0.00 $71,865 $53,875 $5,856 $0 $131,596 $14.12 $165,344 Remove and replace ceiling at the building perimeter for access - 8 to 10 lf wide 488 LF 0.260 carp $86.89 17.00 0.80 0.00 $11,024 $8,296 $390 $0 $19,711 $50.82 $24,802 Allowance to reroute SS Drain 2 LS $0.00 0.00 0.00 1,000.00 $0 $0 $0 $2,000 $2,000 $1,000.00 $2,000 Allowance to reroute water line 2 LS $0.00 0.00 0.00 1,500.00 $0 $0 $0 $3,000 $3,000 $1,500.00 $3,000 Allowance to reroute electrical 2 LS $0.00 0.00 0.00 2,000.00 $0 $0 $0 $4,000 $4,000 $2,000.00 $4,000 Paint and patch - final clean-up 2 LS $0.00 0.00 0.00 1,500.00 $0 $0 $0 $3,000 $3,000 $1,500.00 $3,000 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0.00 $0 Add for General Conditions & Design Contingency 30% LS $0.00 0.00 0.00 501,746 $0 $0 $0 $150,524 $150,524 $501,746 $150,524 Add for Soft Cost Premium 25% LS 652,270 $652,270 $163,068 Total Construction Cost of: Building 9 - Tilt-up Concrete Shear Walls (COM1-4, COM7, COM9, IND1-IND6)38,400 SF $82,889 $62,171 $6,246 $462,124 $613,431 $21.23 $815,300 Building 10 - Reinforced Masonry Bearing Wall (COM1- COM5, COM8, IND1-IND6)2,750 SF, 1 Story Structural upgrade - See detail 1 LS $0.00 0.00 0.00 70,000.00 $0 $0 $0 $70,000 $70,000 $70,000.00 $70,000 Remove and replace roof, insulation & roof accessories 2,750 SF 0.082 rofc $74.83 4.60 0.50 0.00 $16,874 $12,650 $1,375 $0 $30,899 $14.12 $38,823 Remove and replace ceiling at the building perimeter for access - 8 to 10 lf wide 210 LF 0.260 carp $86.89 17.00 0.80 0.00 $4,744 $3,570 $168 $0 $8,482 $50.82 $10,673 Allowance to reroute SS Drain 1 LS $0.00 0.00 0.00 1,000.00 $0 $0 $0 $1,000 $1,000 $1,000.00 $1,000 Allowance to reroute water line 1 LS $0.00 0.00 0.00 1,500.00 $0 $0 $0 $1,500 $1,500 $1,500.00 $1,500 Allowance to reroute electrical 1 LS $0.00 0.00 0.00 2,000.00 $0 $0 $0 $2,000 $2,000 $2,000.00 $2,000 Paint and patch, floors - final clean-up 1 LS $0.00 0.00 0.00 1,500.00 $0 $0 $0 $1,500 $1,500 $1,500.00 $1,500 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0.00 $0 Add for General Conditions & Design Contingency 30% LS $0.00 0.00 0.00 125,496 $0 $0 $0 $37,649 $37,649 $125,496 $37,649 Add for Soft Cost Premium 25% LS 163,145 $163,145 $40,786 Total Construction Cost of: Building 10 - Reinforced Masonry Bearing Wall (COM1- COM5, COM8, IND1-IND6)2,750 SF $21,618 $16,220 $1,543 $113,649 $153,030 $74.15 $203,900 Building 8 - Tilt-up Concrete Shear Walls (COM1-4, COM7, COM9, IND1-IND6) 38,400 SF, 2 Story City of Palo Alto - Seismic R6 - 12 21 2016 printed on 12/21/2016 Page 8 Project: City of Palo Alto - Seismic Risk Mitigation Title: Replacement and Retrofit Cost Estimate Date: May 9, 2016 & revised on November 9, 2016 MH MH UNIT TOTAL / UNIT COST MATL EQUIP SUB LABOR MATL EQUIP SUB DIRECT COST COST CREW UNIT TOTAL COST DESCRIPTION QTY UNIT Building 11 - Reinforced Masonry Bearing Wall (RES3D - 3F, RES4, RES5, RES6, COM1-COM9, IND1-IND6)8,150 SF, 2 Story Structural upgrade - See detail 1 LS $0.00 0.00 0.00 114,500.0 $0 $0 $0 $114,500 $114,500 $114,500.00 $114,500 Remove and replace roof, insulation & roof accessories 3,925 SF 0.082 rofc $74.83 4.60 0.50 0.00 $24,084 $18,055 $1,963 $0 $44,101 $14.12 $55,411 Remove and replace ceiling for access at 1st floor new shear walls & 2nd floor anchor walls 300 LF 0.520 carp $86.89 34.00 1.60 0.00 $13,540 $10,189 $479 $0 $24,208 $101.65 $30,461 Remove and replace ceiling for access at roof level 3,925 SF 0.026 carp $86.89 1.70 0.08 0.00 $8,867 $6,673 $314 $0 $15,853 $5.08 $19,948 Allowance to reroute SS Drain 1 LS $0.00 0.00 0.00 1,000.00 $0 $0 $0 $1,000 $1,000 $1,000.00 $1,000 Allowance to reroute water line 1 LS $0.00 0.00 0.00 1,250.00 $0 $0 $0 $1,250 $1,250 $1,250.00 $1,250 Allowance to reroute electrical 2 LS $0.00 0.00 0.00 1,000.00 $0 $0 $0 $2,000 $2,000 $1,000.00 $2,000 Paint and patch, floors - final clean-up 2 LS $0.00 0.00 0.00 2,000.00 $0 $0 $0 $4,000 $4,000 $2,000.00 $4,000 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0.00 $0 Add for General Conditions & Design Contingency 30% LS $0.00 0.00 0.00 228,570 $0 $0 $0 $68,571 $68,571 $228,570 $68,571 Add for Soft Cost Premium 25% LS 297,141 $297,141 $74,285 Total Construction Cost of: Building 11 - Reinforced Masonry Bearing Wall (RES3D - 3F, RES4, RES5, RES6, COM1-COM9, IND1-IND6)8,150 SF $46,490 $34,916 $2,756 $191,321 $275,483 $45.57 $371,400 Building 12 - Unreinforced Masonry Bearing Wall (COM1, COM2, COM3, COM4, COM5, COM8)5,000 SF, 1 Story Structural upgrade - See detail 1 LS $0.00 0.00 0.00 238,500.0 $0 $0 $0 $238,500 $238,500 $238,500.00 $238,500 Remove and replace roof, insulation & roof accessories 5,000 SF 0.082 rofc $74.83 4.60 0.50 0.00 $30,680 $23,000 $2,500 $0 $56,180 $14.12 $70,587 Remove and replace ceiling at 2nd floor of the building perimeter for access - 8 to 10 lf wide 210 LF 0.260 carp $86.89 17.00 0.80 0.00 $4,744 $3,570 $168 $0 $8,482 $50.82 $10,673 Remove and replace ceiling for access at moment frame & collector - both levels, 8 to 10 lf wide 1,000 SF 0.026 carp $86.89 1.70 0.08 0.00 $2,259 $1,700 $80 $0 $4,039 $5.08 $5,082 Remover and replace furring walls at supplemental supports 14 LOC 2.000 carp $86.89 96.00 25.00 0.00 $2,433 $1,344 $350 $0 $4,127 $372.17 $5,210 Allowance to reroute SS Drain 1 LS $0.00 0.00 0.00 1,000.00 $0 $0 $0 $1,000 $1,000 $1,000.00 $1,000 Allowance to reroute water line 1 LS $0.00 0.00 0.00 1,500.00 $0 $0 $0 $1,500 $1,500 $1,500.00 $1,500 Allowance to reroute electrical 2 LS $0.00 0.00 0.00 1,500.00 $0 $0 $0 $3,000 $3,000 $1,500.00 $3,000 Paint and patch, floors - final clean-up 2 LS $0.00 0.00 0.00 1,500.00 $0 $0 $0 $3,000 $3,000 $1,500.00 $3,000 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0.00 $0 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0.00 $0 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0.00 $0 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0.00 $0 Add for General Conditions & Design Contingency 30% LS $0.00 0.00 0.00 338,553 $0 $0 $0 $101,566 $101,566 $338,553 $101,566 25% LS 440,119 $440,119 $110,030 Total Construction Cost of: Building 12 - Unreinforced Masonry Bearing Wall (COM1, COM2, COM3, COM4, COM5, COM8)5,000 SF $40,116 $29,614 $3,098 $348,566 $421,394 $110.02 $550,100 City of Palo Alto - Seismic R6 - 12 21 2016 printed on 12/21/2016 Page 9 Project: City of Palo Alto - Seismic Risk Mitigation Title: Replacement and Retrofit Cost Estimate Date: May 9, 2016 & revised on November 9, 2016 Structural Cost Estimate Structural Cost Estimate Project: City of Palo Alto - Seismic Risk Mitigation Title: Replacement and Retrofit Cost Estimate Date: May 9, 2016 & revised on November 9, 2016 MH MH UNIT / UNIT COST MATL EQUIP SUB LABOR MATL EQUIP SUB DIRECT w/MU COST Bldg 1 Sawcut & remove concrete, excavate for new footing 4 LOC 4.000 b89 $55.59 0.00 150.00 0.00 $889 $0 $600 $0 $1,489 $1,882 $470.53 New concrete footing / SOG with dowel to existing 4 LOC 4.000 b5 $67.34 600.00 100.00 0.00 $1,077 $2,400 $400 $0 $3,877 $4,726 $1,181.55 Add moment frame with all connections 2 LOC 16.000 skwk $81.42 4,568.75 500.00 0.00 $2,605 $9,138 $1,000 $0 $12,743 $15,401 $7,700.65 Add new collector with all connections 2 LOC 4.000 skwk $81.42 1,000.00 150.00 0.00 $651 $2,000 $300 $0 $2,951 $3,574 $1,786.88 Add plywood, hold downs and anchor bolts 5 LOC 4.000 carp $86.89 350.00 50.00 0.00 $1,738 $1,750 $250 $0 $3,738 $4,654 $930.77 Load & move debris + clean area 2 LS 4.000 clab $60.77 0.00 100.00 0.00 $486 $0 $200 $0 $686 $878 $438.85 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0 $0.00 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0 $0.00 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0 $0.00 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0 $0.00 Bldg 1 total 1 LS 0.000 $0.00 15,287.50 2,750.00 0.00 $7,448 $15,288 $2,750 $0 $25,485 $31,100 $31,100.00 Bldg 2 Sawcut & remove concrete, excavate for new footing 4 LOC 4.000 b89 $55.59 0.00 150.00 0.00 $889 $0 $600 $2,000 $3,489 $3,882 $970.53 New concrete footing / SOG with dowel to existing 4 LOC 4.000 b5 $67.34 600.00 100.00 0.00 $1,077 $2,400 $400 $0 $3,877 $4,726 $1,181.55 Add moment frame with all connections 2 LOC 20.000 skwk $81.42 5,443.75 500.00 0.00 $3,257 $10,888 $1,000 $0 $15,144 $18,326 $9,163.03 Add new collector with all connections 2 LOC 6.000 skwk $81.42 2,000.00 200.00 0.00 $977 $4,000 $400 $0 $5,377 $6,482 $3,240.82 Add plywood, hold downs and anchor bolts 5 LOC 4.000 carp $86.89 350.00 50.00 0.00 $1,738 $1,750 $250 $0 $3,738 $4,654 $930.77 Load & move debris + clean area 1 LS 8.000 clab $60.77 0.00 250.00 0.00 $486 $0 $250 $0 $736 $937 $936.71 Sawcut & remove concrete, excavate for new grade beam - 25 LF 1 LOC 10.000 b89 $55.59 0.00 250.00 0.00 $556 $0 $250 $0 $806 $1,029 $1,028.84 New concrete grade beam / SOG with dowel to existing footing - 25 LF 1 LOC 18.000 b5 $67.34 3,500.00 750.00 0.00 $1,212 $3,500 $750 $0 $5,462 $6,615 $6,614.98 New shear wall w/plywood on both sides, 25 LF 1 LOC 24.000 Carp $86.89 4,800.00 250.00 0.00 $2,085 $4,800 $250 $0 $7,135 $8,712 $8,711.62 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0 $0.00 Bldg 2 total 1 LS 0.000 $0.00 27,337.50 4,150.00 2,000.00 $12,278 $27,338 $4,150 $2,000 $45,765 $55,400 $55,400.00 Bldg 3 Sawcut & remove concrete, excavate for new footing 8 LOC 4.000 b89 $55.59 0.00 150.00 0.00 $1,779 $0 $1,200 $3,000 $5,979 $6,764 $845.53 New concrete footing / SOG with dowel to existing 8 LOC 4.000 b5 $67.34 600.00 100.00 0.00 $2,155 $4,800 $800 $0 $7,755 $9,452 $1,181.55 Add moment frame with all connections 4 LOC 16.000 skwk $81.42 4,568.75 500.00 0.00 $5,211 $18,275 $2,000 $0 $25,486 $30,803 $7,700.65 Add new collector with all connections 8 LOC 6.000 skwk $81.42 2,000.00 200.00 0.00 $3,908 $16,000 $1,600 $0 $21,508 $25,927 $3,240.82 Add plywood, hold downs and anchor bolts - back walls 4 LOC 4.000 carp $86.89 350.00 50.00 0.00 $1,390 $1,400 $200 $0 $2,990 $3,723 $930.77 Add plywood, hold downs and anchor bolts - side walls 5 LOC 6.000 carp $86.89 500.00 75.00 0.00 $2,607 $2,500 $375 $0 $5,482 $6,833 $1,366.66 Load & move debris + clean area 4 LS 4.000 clab $60.77 0.00 100.00 0.00 $972 $0 $400 $0 $1,372 $1,755 $438.85 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0 $0.00 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0 $0.00 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0 $0.00 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0 $0.00 Bldg 3 total 1 LS 0.000 $0.00 42,975.00 6,575.00 3,000.00 $18,022 $42,975 $6,575 $3,000 $70,572 $85,300 $85,300.00 DESCRIPTION QTY UNIT TOTAL COST UNIT CREW City of Palo Alto - Seismic R6 - 12 21 2016 printed on 12/21/2016 Page 11 Structural Cost Estimate Project: City of Palo Alto - Seismic Risk Mitigation Title: Replacement and Retrofit Cost Estimate Date: May 9, 2016 & revised on November 9, 2016 MH MH UNIT / UNIT COST MATL EQUIP SUB LABOR MATL EQUIP SUB DIRECT w/MU COST DESCRIPTION QTY UNIT TOTAL COST UNIT CREW Bldg 4 Sawcut & remove concrete, excavate for new footing 6 LOC 4.000 b89 $55.59 0.00 150.00 0.00 $1,334 $0 $900 $0 $2,234 $2,823 $470.53 New concrete footing / SOG with dowel to existing 6 LOC 4.000 b5 $67.34 600.00 100.00 0.00 $1,616 $3,600 $600 $0 $5,816 $7,089 $1,181.55 Add moment frame with all connections 3 LOC 16.000 skwk $81.42 5,163.75 500.00 0.00 $3,908 $15,491 $1,500 $0 $20,899 $25,208 $8,402.75 Add new collector with all connections 2 LOC 6.000 skwk $81.42 2,000.00 200.00 0.00 $977 $4,000 $400 $0 $5,377 $6,482 $3,240.82 Add for mid span collector with all connections 1 LOC 10.000 skwk $81.42 3,000.00 200.00 0.00 $814 $3,000 $200 $0 $4,014 $4,851 $4,850.70 Add plywood, hold downs and anchor bolts - side walls 8 LOC 4.000 carp $86.89 350.00 50.00 0.00 $2,780 $2,800 $400 $0 $5,980 $7,446 $930.77 Add plywood, hold downs and anchor bolts - back walls 2 LOC 8.000 carp $86.89 600.00 75.00 0.00 $1,390 $1,200 $150 $0 $2,740 $3,428 $1,714.04 Load & move debris + clean area 2 LS 8.000 clab $60.77 0.00 200.00 0.00 $972 $0 $400 $0 $1,372 $1,755 $877.71 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0 $0.00 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0 $0.00 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0 $0.00 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0 $0.00 Bldg 4 total 1 LS 0.000 $0.00 30,091.25 4,550.00 0.00 $13,792 $30,091 $4,550 $0 $48,434 $59,100 $59,100.00 Bldg 5 Sawcut & remove concrete, excavate for new footing & micropile 28 LOC 4.000 b89 $55.59 0.00 150.00 0.00 $6,226 $0 $4,200 $0 $10,426 $13,175 $470.53 New concrete footing / SOG with dowel to existing + headed bars 28 LOC 4.000 b5 $67.34 800.00 100.00 0.00 $7,542 $22,400 $2,800 $0 $32,742 $39,691 $1,417.55 Drill thru ( E) footings for new headed bar 14 LOC 8.000 b5 $67.34 100.00 250.00 0.00 $7,542 $1,400 $3,500 $0 $12,442 $15,737 $1,124.10 New micropile 28 LOC 8.000 skwk $81.42 350.00 100.00 0.00 $18,237 $9,800 $2,800 $0 $30,837 $38,941 $1,390.76 Add HSS brace frame all connections at ( E) frames 8 LOC 16.000 skwk $81.42 5,408.73 500.00 0.00 $10,421 $43,270 $4,000 $0 $57,691 $69,535 $8,691.82 Add new collector with all connections 4 LOC 8.000 skwk $81.42 1,500.00 200.00 0.00 $2,605 $6,000 $800 $0 $9,405 $11,463 $2,865.76 Add for mobilization and special requirements 1 LS $0.00 0.00 25,000.00 0.00 $0 $0 $25,000 $0 $25,000 $29,500 $29,500.00 Load & move debris + clean area 8 LS 4.000 clab $60.77 0.00 100.00 0.00 $1,945 $0 $800 $0 $2,745 $3,511 $438.85 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0 $0.00 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0 $0.00 Bldg 5 total 1 LS 0.000 $0.00 82,869.82 43,900.00 0.00 $54,519 $82,870 $43,900 $0 $181,289 $221,600 $221,600.00 Bldg 6 Sawcut & remove concrete, excavate for new footing 4 LOC 4.000 b89 $55.59 0.00 150.00 0.00 $889 $0 $600 $0 $1,489 $1,882 $470.53 New concrete footing / SOG with dowel to existing 4 LOC 6.000 b5 $67.34 800.00 100.00 0.00 $1,616 $3,200 $400 $0 $5,216 $6,381 $1,595.33 Add moment frame with all connections 2 LOC 20.000 skwk $81.42 6,804.38 500.00 0.00 $3,257 $13,609 $1,000 $0 $17,865 $21,537 $10,768.56 Drill hole in concrete wall, add anchor tie down - roof to wall - tight working area 35 LOC 2.000 skwk $81.42 150.00 25.00 0.00 $5,699 $5,250 $875 $0 $11,824 $14,750 $421.44 Add new plywood sheathing over ( E) at roof 5,000 SF 0.006 carp $86.89 2.00 0.10 0.00 $2,607 $10,000 $500 $0 $13,107 $15,831 $3.17 Load & move debris + clean area 2 LS 4.000 clab $60.77 0.00 100.00 0.00 $486 $0 $200 $0 $686 $878 $438.85 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0 $0.00 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0 $0.00 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0 $0.00 Bldg 6 total 1 LS 0.000 $0.00 32,058.75 3,575.00 0.00 $14,554 $32,059 $3,575 $0 $50,188 $61,300 $61,300.00 City of Palo Alto - Seismic R6 - 12 21 2016 printed on 12/21/2016 Page 12 Structural Cost Estimate Project: City of Palo Alto - Seismic Risk Mitigation Title: Replacement and Retrofit Cost Estimate Date: May 9, 2016 & revised on November 9, 2016 MH MH UNIT / UNIT COST MATL EQUIP SUB LABOR MATL EQUIP SUB DIRECT w/MU COST DESCRIPTION QTY UNIT TOTAL COST UNIT CREW Bldg 7 Sawcut & remove concrete, excavate for new footing / micropile- at perimeter 2 LOC 8.000 b89 $55.59 0.00 250.00 0.00 $889 $0 $500 $0 $1,389 $1,764 $882.07 Sawcut & remove concrete, excavate for new footing / micropile - interior 1 LOC 10.000 b89 $55.59 0.00 300.00 0.00 $556 $0 $300 $0 $856 $1,088 $1,087.84 New concrete footing / SOG with dowel to existing footing / pile cap 2 LOC 12.000 b5 $67.34 1,200.00 250.00 0.00 $1,616 $2,400 $500 $0 $4,516 $5,555 $2,777.65 New concrete footing / SOG at interior 1 LOC 12.000 b5 $67.34 1,250.00 250.00 0.00 $808 $1,250 $250 $0 $2,308 $2,837 $2,836.65 New micropile 12 LOC 10.000 skwk $81.42 450.00 250.00 0.00 $9,770 $5,400 $3,000 $0 $18,170 $22,808 $1,900.70 New concrete shear wall with dowel to existing columns - first & 2nd floors 1,056 SF 0.700 b5 $67.34 15.00 5.00 0.00 $49,777 $15,840 $5,280 $0 $70,897 $90,627 $85.82 New concrete shear wall at interior - first & 2nd floors 576 SF 0.600 b5 $67.34 12.50 3.00 0.00 $23,272 $7,200 $1,728 $0 $32,200 $41,255 $71.62 Shore slab during construction 136 LF 0.500 carp $86.89 25.00 15.00 0.00 $5,908 $3,400 $2,040 $0 $11,348 $14,218 $104.55 Core drill / opening in first floor slab & roof for dowel / shear wall 136 LF 0.200 b89 $55.59 15.00 5.00 0.00 $1,512 $2,040 $680 $0 $4,232 $5,206 $38.28 Core drill / dowel and new concrete collector below 2nd floor & roof + patch pour hole 264 LF 1.250 b5 $67.34 80.00 15.00 0.00 $22,222 $21,120 $3,960 $0 $47,302 $58,927 $223.21 Clean and prep col surface 2 LS 2.000 clab $60.77 25.00 25.00 0.00 $243 $50 $50 $0 $343 $439 $219.43 Add FRP at the column surface 300 SF 0.180 skwk $81.42 35.00 10.00 0.00 $4,397 $10,500 $3,000 $0 $17,897 $21,733 $72.44 Load & move debris + clean area 12 LS 4.000 clab $60.77 0.00 100.00 0.00 $2,917 $0 $1,200 $0 $4,117 $5,266 $438.85 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0 $0.00 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0 $0.00 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0 $0.00 Bldg 7 total 1 LS 0.000 $0.00 69,200.00 22,488.00 0.00 $123,888 $69,200 $22,488 $0 $215,576 $271,700 $271,700.00 Bldg 8 Drill hole in concrete wall, add anchor tie down - roof to wall two walls - tight working area 30 LOC 2.000 skwk $81.42 150.00 25.00 0.00 $4,885 $4,500 $750 $0 $10,135 $12,643 $421.44 Drill hole in concrete wall, add anchor at sub- purlin - roof to wall two walls - tight working area 48 LOC 6.000 skwk $81.42 200.00 50.00 0.00 $23,448 $9,600 $2,400 $0 $35,448 $45,111 $939.82 Add new collector with all connections 4 LOC 10.000 skwk $81.42 1,500.00 200.00 0.00 $3,257 $6,000 $800 $0 $10,057 $12,323 $3,080.70 Add new plywood sheathing over ( E) roof at perimeter 11,520 SF 0.006 carp $86.89 2.00 0.10 0.00 $6,006 $23,040 $1,152 $0 $30,198 $36,474 $3.17 Load & move debris + clean area 1 LS 12.000 clab $60.77 0.00 200.00 0.00 $729 $0 $200 $0 $929 $1,199 $1,198.56 Continuity ties (subpurlin, girder, purlin) 90 LOC 2.000 carp $86.89 50.00 10.00 0.00 $15,640 $4,500 $900 $0 $21,040 $27,017 $300.19 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0 $0.00 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0 $0.00 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0 $0.00 Bldg 8 total 1 LS 0.000 $0.00 47,640.00 6,202.00 0.00 $53,965 $47,640 $6,202 $0 $107,807 $134,800 $134,800.00 City of Palo Alto - Seismic R6 - 12 21 2016 printed on 12/21/2016 Page 13 Structural Cost Estimate Project: City of Palo Alto - Seismic Risk Mitigation Title: Replacement and Retrofit Cost Estimate Date: May 9, 2016 & revised on November 9, 2016 MH MH UNIT / UNIT COST MATL EQUIP SUB LABOR MATL EQUIP SUB DIRECT w/MU COST DESCRIPTION QTY UNIT TOTAL COST UNIT CREW Bldg 9 Drill hole in concrete wall, add enhanced girder connection 14 LOC 4.000 skwk $81.42 250.00 25.00 0.00 $4,559 $3,500 $350 $0 $8,409 $10,561 $754.38 Drill hole in concrete wall, add anchor tie down - roof to wall along two walls - tight working area 25 LOC 2.000 skwk $81.42 150.00 25.00 0.00 $4,071 $3,750 $625 $0 $8,446 $10,536 $421.44 Drill hole in concrete wall, add anchor at sub- purlin - roof to wall along two walls - tight working area 96 LOC 6.000 skwk $81.42 200.00 50.00 0.00 $46,896 $19,200 $4,800 $0 $70,896 $90,223 $939.82 Drill hole in concrete wall, add steel angle & anchor at floor level - wall all around - tight working area 196 LOC 4.000 skwk $81.42 125.00 25.00 0.00 $63,831 $24,500 $4,900 $0 $93,231 $118,949 $606.88 Add new plywood sheathing over ( E) roof at perimeter 11,712 SF 0.006 carp $86.89 2.00 0.10 0.00 $6,106 $23,424 $1,171 $0 $30,701 $37,082 $3.17 Load & move debris + clean area 2 LS 8.000 clab $60.77 0.00 150.00 0.00 $972 $0 $300 $0 $1,272 $1,637 $818.71 Continuity ties (subpurlin, girder, purlin) 102 LOC 2.000 carp $86.89 50.00 10.00 0.00 $17,725 $5,100 $1,020 $0 $23,845 $30,619 $300.19 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0 $0.00 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0 $0.00 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0 $0.00 Bldg 9 total 1 LS 0.000 $0.00 79,474.00 13,166.20 0.00 $144,160 $79,474 $13,166 $0 $236,800 $299,600 $299,600.00 Bldg 10 Sawcut & remove concrete, excavate for new footing & micropile 2 LOC 4.000 b89 $55.59 0.00 150.00 0.00 $445 $0 $300 $0 $745 $941 $470.53 New concrete footing / SOG with dowel to existing + headed bars 2 LOC 6.000 b5 $67.34 1,500.00 250.00 0.00 $808 $3,000 $500 $0 $4,308 $5,197 $2,598.33 Drill thru ( E) footings for new headed bar 0 LOC 8.000 b5 $67.34 100.00 250.00 0.00 $0 $0 $0 $0 $0 $0 $0.00 New micropile 0 LOC 8.000 skwk $81.42 350.00 100.00 0.00 $0 $0 $0 $0 $0 $0 $0.00 New concrete footing / SOG with dowel to existing 2 LOC 6.000 b5 $67.34 800.00 100.00 0.00 $808 $1,600 $200 $0 $2,608 $3,191 $1,595.33 Add moment frame with all connections 2 LOC 20.000 skwk $81.42 6,804.38 500.00 0.00 $3,257 $13,609 $1,000 $0 $17,865 $21,537 $10,768.56 Add brace frame W24x76 & W12x96 with all connections 0 LOC 32.000 skwk $81.42 6,475.00 500.00 0.00 $0 $0 $0 $0 $0 $0 $0.00 Add HSS brace frame all connections at ( E) frames 0 LOC 16.000 skwk $81.42 5,408.73 500.00 0.00 $0 $0 $0 $0 $0 $0 $0.00 Add new collector with all connections 1 LOC 8.000 skwk $81.42 1,500.00 200.00 0.00 $651 $1,500 $200 $0 $2,351 $2,866 $2,865.76 Drill hole in concrete wall, add enhanced girder connection 2 LOC 4.000 skwk $81.42 250.00 25.00 0.00 $651 $500 $50 $0 $1,201 $1,509 $754.38 Drill hole in concrete wall, add anchor tie down - roof to wall - tight working area 12 LOC 2.000 skwk $81.42 150.00 25.00 0.00 $1,954 $1,800 $300 $0 $4,054 $5,057 $421.44 Drill hole in concrete wall, add anchor at sub- purlin - roof to wall along one bay - tight working area 14 LOC 6.000 skwk $81.42 200.00 50.00 0.00 $6,839 $2,800 $700 $0 $10,339 $13,157 $939.82 Add new continuity ties (subpurlin, girder, purlin) 22 LOC 2.000 carp $86.89 50.00 10.00 0.00 $3,823 $1,100 $220 $0 $5,143 $6,604 $300.19 Add new plywood sheathing over ( E) roof at perimeter 2,750 SF 0.006 carp $86.89 2.00 0.10 0.00 $1,434 $5,500 $275 $0 $7,209 $8,707 $3.17 New blocking where wall anchor does not allow - Allowance 0 LS 8.000 carp $86.89 500.00 50.00 0.00 $0 $0 $0 $0 $0 $0 $0.00 Load & move debris + clean area 1 LS 12.000 clab $60.77 0.00 200.00 0.00 $729 $0 $200 $0 $929 $1,199 $1,198.56 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0 $0.00 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0 $0.00 Bldg 10 total 1 LS 0.000 $0.00 31,408.75 3,945.00 0.00 $21,399 $31,409 $3,945 $0 $56,753 $70,000 $70,000.00 City of Palo Alto - Seismic R6 - 12 21 2016 printed on 12/21/2016 Page 14 Structural Cost Estimate Project: City of Palo Alto - Seismic Risk Mitigation Title: Replacement and Retrofit Cost Estimate Date: May 9, 2016 & revised on November 9, 2016 MH MH UNIT / UNIT COST MATL EQUIP SUB LABOR MATL EQUIP SUB DIRECT w/MU COST DESCRIPTION QTY UNIT TOTAL COST UNIT CREW Bldg 11 Sawcut & remove concrete, excavate for new grade beam - 25 LF 2 LOC 10.000 b89 $55.59 0.00 250.00 0.00 $1,112 $0 $500 $0 $1,612 $2,058 $1,028.84 New concrete grade beam / SOG with dowel to existing footing - 25 LF 2 LOC 18.000 b5 $67.34 3,500.00 750.00 0.00 $2,424 $7,000 $1,500 $0 $10,924 $13,230 $6,614.98 New shear wall w/plywood on both sides, 25 LF 2 LOC 24.000 Carp $86.89 4,800.00 250.00 0.00 $4,171 $9,600 $500 $0 $14,271 $17,423 $8,711.62 Drill hole in concrete wall, add anchor tie down - roof to wall along two walls - tight working area 40 LOC 2.000 skwk $81.42 150.00 25.00 0.00 $6,513 $6,000 $1,000 $0 $13,513 $16,858 $421.44 Drill hole in concrete wall, install floor to wall anchor at floor level 40 LOC 6.000 skwk $81.42 200.00 50.00 0.00 $19,540 $8,000 $2,000 $0 $29,540 $37,593 $939.82 Add new purlin continuity ties 25 LOC 2.000 carp $86.89 50.00 10.00 0.00 $4,344 $1,250 $250 $0 $5,844 $7,505 $300.19 Add new collector with all connections at second floor 1 LOC 10.000 skwk $81.42 1,500.00 200.00 0.00 $814 $1,500 $200 $0 $2,514 $3,081 $3,080.70 Add new collector with all connections at roof 1 LOC 10.000 skwk $81.42 1,500.00 200.00 0.00 $814 $1,500 $200 $0 $2,514 $3,081 $3,080.70 Add new plywood sheathing over ( E) roof 3,925 SF 0.006 carp $86.89 2.00 0.10 0.00 $2,046 $7,850 $393 $0 $10,289 $12,427 $3.17 Load & move debris + clean area 1 LS 12.000 clab $60.77 0.00 200.00 0.00 $729 $0 $200 $0 $929 $1,199 $1,198.56 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0 $0.00 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0 $0.00 Bldg 11 total 1 LS 0.000 $0.00 42,700.00 6,742.50 0.00 $42,508 $42,700 $6,743 $0 $91,951 $114,500 $114,500.00 Bldg 12 Sawcut & remove concrete, excavate for new footing 4 LOC 4.000 b89 $55.59 0.00 150.00 0.00 $889 $0 $600 $0 $1,489 $1,882 $470.53 New concrete footing / SOG with dowel to existing 4 LOC 4.000 b5 $67.34 600.00 100.00 0.00 $1,077 $2,400 $400 $0 $3,877 $4,726 $1,181.55 Add moment frame with all connections - 12'-6" span 1 LOC 16.000 skwk $81.42 5,382.50 500.00 0.00 $1,303 $5,383 $500 $0 $7,185 $8,661 $8,660.87 Add moment frame with all connections - 25' span 1 LOC 20.000 skwk $81.42 6,804.38 500.00 0.00 $1,628 $6,804 $500 $0 $8,933 $10,769 $10,768.56 Allowance for increased footing size at 25' span moment frame 1 LOC 2.000 b5 $67.34 200.00 50.00 0.00 $135 $200 $50 $0 $385 $473 $472.78 Add moment frame with all connections per detail 28 - NOT APPLICABLE DETAIL 0 LOC 0.000 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0 $0.00 Add new collector with all connections, 25' span 1 LOC 6.000 skwk $81.42 1,500.00 150.00 0.00 $489 $1,500 $150 $0 $2,139 $2,592 $2,591.82 Add new collector with all connections, 37' span 1 LOC 10.000 skwk $81.42 2,000.00 200.00 0.00 $814 $2,000 $200 $0 $3,014 $3,671 $3,670.70 Drill hole in URM wall, add supplemental vertical support - 14 LOCATIONS 14 LOC 20.000 skwk $81.42 2,500.00 250.00 0.00 $22,797 $35,000 $3,500 $0 $61,297 $75,522 $5,394.40 Drill hole in URM wall, add anchor tie down - roof to wall along each wall - tight working area 75 LOC 2.000 skwk $81.42 150.00 25.00 0.00 $12,213 $11,250 $1,875 $0 $25,338 $31,608 $421.44 Drill hole in URM wall, add parapet brace - along each wall 38 LOC 6.000 skwk $81.42 1,250.00 50.00 0.00 $18,563 $47,500 $1,900 $0 $67,963 $82,795 $2,178.82 Add new plywood sheathing over ( E) roof 5,000 SF 0.006 carp $86.89 2.00 0.10 0.00 $2,607 $10,000 $500 $0 $13,107 $15,831 $3.17 Load & move debris + clean area 1 LS 12.000 clab $60.77 0.00 200.00 0.00 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0 $0.00 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0 $0.00 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0 $0.00 $0.00 0.00 0.00 0.00 $0 $0 $0 $0 $0 $0 $0.00 Bldg 12 total 1 LS 0.000 $0.00 122,036.88 10,175.00 0.00 $62,514 $122,037 $10,175 $0 $194,726 $238,500 $238,500.00 City of Palo Alto - Seismic R6 - 12 21 2016 printed on 12/21/2016 Page 15 Project: City of Palo Alto - Seismic Risk Mitigation Title: Replacement and Retrofit Cost Estimate Date: May 9, 2016 & revised on November 9, 2016 Methodology Cost Model Project: City of Palo Alto - Seismic Risk Mitigation Title: Replacement and Retrofit Cost Estimate Date: May 9, 2016 & revised on November 9, 2016 Cost Model Methodology - Palo Alto Seismic Risk Management Program project  All costs are current – 4th quarter of 2016 costs – escalation to the mid-point of construction to be added at a later time based on the schedule of the construction work. Cost of retrofit includes:  Structural costs: The cost that a subcontractor charges a general contractor to perform structural work.  Architectural refinishing or collateral costs: The cost for architectural work associated with the structural work that a subcontractor charges the general contractor. Included are items such as demolition and replacement costs for wall and ceiling finishes, removal and reinstallation of electrical and mechanical equipment, and reroofing. Assume an “average” level of finishes.  Overhead and profit: Overhead includes bonds, insurance, and general conditions, and it covers administration and management of subcontractors.  Design contingency: Use and identify a design contingency that is appropriate to the conceptual retrofit level of the retrofit descriptions to cover unknown costs of work not specified but which will likely be necessary. In order to gauge the impact of seismic retrofitting potentially hazardous building types and perform loss estimates on the building stock with and without the retrofits, a conceptual cost estimates for the retrofits has been developed, to compare the cost of retrofit with the losses. R+C has developed a conceptual retrofits for a selected set of representative buildings. Vanir provided the retrofit cost of these building for the seismic upgrade as well as the collateral cost of performing seismic works. The conceptual cost estimate is based on Vanir cost model from seismic retrofit of various building types modified and adjusted for the scope of these buildings, current construction market as well as the location impact -Palo Alto across the town, including downtown areas. Project: City of Palo Alto - Seismic Risk Mitigation Title: Replacement and Retrofit Cost Estimate Date: May 9, 2016 & revised on November 9, 2016 Soft costs: including but not limited to:  Architect and engineer design fees  Testing and inspection fees  Permit and plan check fees  An allowance for owner change order contingency  Advertising, printing, and mailing fees  Hazardous material abatement costs, such as asbestos, lead paint, or soil contamination.  Occupants-in-place costs, (assumed building will be vacant for the seismic retrofit)  Relocation of the occupants / interim housing / swing space  Relocation of the building content – furniture and similar  Loss of use during construction  Accessibility / ADA upgrade  Cost of code upgrade  Premium for Historic buildings  Repair of existing conditions / differed maintenance  Renovation / retrofit over and beyond seismic work  Upgrade / enhancement of finishes / equipment / infrastructure  Project and construction management  Environmental documentation fees  Financing costs  Legal fees Cost Categories exclude the cost / fee of the following items: Structural | Geotechnical 375 Beale Street, Suite 310 San Francisco, CA 94105 Threat and Hazard Identification and Risk Assessment Report Prepared by City of Palo Alto Office of Emergency Services With the assistance of Unrestricted – For Public Release 15 August 2014 Table of Contents Table of Contents ............................................................................................................................. 1 List of Tables ............................................................................................................................... 2 List of Figures .............................................................................................................................. 2 1 Executive Summary ................................................................................................................. 3 2 Introduction ............................................................................................................................ 3 3 Goal Setting ............................................................................................................................. 5 4 Hazard Identification and Prioritization ................................................................................. 9 4.1 Identified Hazards and Threats ....................................................................................... 9 4.2 Natural Hazard Prioritization ......................................................................................... 17 4.3 Technological Hazard Prioritization ............................................................................... 19 4.4 Human Caused Threat Prioritization ............................................................................. 20 4.5 Threats and Hazards of Most Concern ........................................................................... 21 5 Hazard Profiles ...................................................................................................................... 22 5.1 Non-Natural Hazard Profile Structure .......................................................................... 22 5.2 Earthquake Hazard Summary ....................................................................................... 23 5.3 Flood/Severe Winter Storm Hazard Summary ............................................................. 23 5.4 Airplane Accident Profile ............................................................................................... 24 5.5 Urban Fire Profile .......................................................................................................... 28 5.6 Major Crimes .................................................................................................................. 29 5.7 Cyber Attack Profile ........................................................................................................ 31 5.8 Hostage/Assassin Profile ............................................................................................... 36 5.9 Sabotage/Theft Profile ................................................................................................... 37 5.10 Workplace Violence Profile ............................................................................................ 38 6 Conclusion ............................................................................................................................. 39 6.1 Recommendations for Action ........................................................................................ 40 6.2 THIRA Maintenance ...................................................................................................... 44 7 Appendices ............................................................................................................................ 44 Appendix A: Planning Team ..................................................................................................... 44 1 List of Tables Table 4-1 National Planning Scenarios ..........................................................................................10 Table 4-2 Comprehensive List of Hazards and Definitions ........................................................... 11 Table 4-3 Natural Hazards Rating Criteria.................................................................................... 18 Table 4-4 Natural Hazard Rating Results...................................................................................... 18 Table 4-5 Technological Hazards Rating Criteria.......................................................................... 19 Table 4-6 Technological Hazard Rating Results ........................................................................... 19 Table 4-7 Human Caused Threat Rating Criteria ......................................................................... 20 Table 4-8 Human Caused Threat Rating Results ......................................................................... 20 Table 4-9 Summary of All Hazards Prioritization ......................................................................... 21 Table 5-1 Common Types of Cyber Attacks ................................................................................... 31 Table 5-2 Common Sources of Cybersecurity Threats ................................................................. 33 Table 7-1 Planning Team .............................................................................................................. 45 List of Figures Figure 3-1 National Preparedness Core Capabilities ...................................................................... 5 Figure 5-1 Statistics of Part I and Part II Crimes in Palo Alto from the Palo Alto Fiscal Year 2013 Annual Report ............................................................................................................................... 30 2 1 Executive Summary To evaluate the City of Palo Alto’s capabilities for addressing all hazard events, the City of Palo Alto Office of Emergency Services (OES) conducted a collaborative planning process in order to develop the City of Palo Alto 2014 Threat and Hazard Identification and Risk Assessment (THIRA). This assessment provides the outcomes of this process and is compliant with the U.S. Department of Homeland Security (DHS) Comprehensive Preparedness Guide (CPG) 201. This THIRA report will be used to inform ongoing planning efforts throughout the city. Palo Alto OES established a Planning Team of key stakeholders to ensure development of a well- rounded, inclusive assessment of all relevant threats/hazards and the City’s capabilities to address the five mission areas of prevention, protection, mitigation, response, and recovery. The Planning Team met in person for two full day workshops and additionally provided input via virtual reviews conducted through email correspondence. Prior to the Planning Team workshops, the executive committee met to draft Desired Outcomes. This preliminary coordination by the leadership set the tone for the THIRA planning process and established guidelines for the Planning Team. The two full day workshops were designed to follow CPG 201. Each workshop was facilitated to emphasize comprehensive discussion and integrate expertise by Planning Team members for relevant topics. The first workshop focused on confirming the threats and hazards of concern (CPG 201 Step 1) and developing context (CPG 201 Step 2) to help evaluate potential impacts. The second workshop was a facilitated discussion to validate the potential impacts for each of the developed scenarios. The Planning Team developed Capability Targets based on the greatest estimated impact for each of the 31 Core Capabilities (CPG 201 Step 3). Once the Capability Targets were approved, the Planning Team examined each of the core capabilities against the Capability Target and identified gaps and recent advances in Planningorganization, equipment, Training, and Exercise (POETE). For each of the identified gaps, subject matter experts identified initial recommendations on how to address these gaps (CPG 201 Step 4). As the City of Palo Alto moves forward with the results of the THIRA, it is recommended that the identified gaps be further discussed and analyzed in order to identify the root cause of the gap. Once the root cause is determined by the stakeholders, the identified recommendations should be revised, corrective actions determined and resource estimations be made in order to implement and prioritize the recommendations. This document is published as Unrestricted – For Public Release. There is content published in the Restricted version of this document which is not included in this report due to the sensitive nature of this information. This includes Chapters 6 (Hazard Context), 7 (Vulnerability Assessment), and 8 (Capability Target Statements and Evaluation). 2 Introduction The City of Palo Alto is at risk from a variety of natural and non-natural hazards. Stanford University and other nearby communities are also at risk to many of these same hazards. Preventing, protecting from, mitigating, responding to, and recovering from hazards and threats 3 requires extensive coordination among City agencies and local partners, including Stanford. The City’s Office of Emergency Services (OES) leads that coordination with the goal of “developing, maintaining, and sustaining a citywide, comprehensive, all hazard, risk-based emergency management program that engages the whole community”1. The Stanford University Department of Public Safety and the Stanford University Environmental Health & Safety (EH&S) Department partner with the City to enhance their emergency preparedness, mitigation, and response capabilities. Under separate contracts, the City provides all 911 Public Safety Answering Point (PSAP) dispatch services to Stanford, and is also the prime Fire and EMS provider to the University. Together, the City’s OES and representatives from Stanford University supported the formulation of this plan. To better understand and effectively prioritize risk reduction measures, OES conducted a collaborative planning process with an Executive Committee and a broader Stakeholder Group to evaluate current capabilities with regard to prevention, protection, mitigation, response, and recovery. This THIRA is the result of the collaborative planning process. It is compliant with the U.S. Department of Homeland Security (DHS) Comprehensive Preparedness Guide (CPG) 201, Second Edition, released in August 2013, which outlines a process to help communities identify capability targets and resource requirements necessary to address anticipated and unanticipated risks. The result of the THIRA process is an organized evaluation of vulnerability and implementation measures based on the necessary capabilities to deal with the hazards/threats of most concern. This report should inform ongoing City and University planning efforts including, but not limited to, the following: • Emergency Operations Plan • Hazard Mitigation Plan • Emergency Planning & Homeland Security Strategic Plan • Operating Budget • Capital Budget • Office of Emergency Services Annual Report • Comprehensive Plan DHS requires annual THIRAs from States and Tier 1 Urban Area Security Initiative (UASI) organizations. The City of Palo Alto THIRA, as a local government assessment, may be shared as appropriate with the San Francisco Bay Area UASI and California Governor’s Office of Emergency Services (Cal OES) to ensure consistency in vulnerability analyses. Both the California State THIRA and San Francisco Bay Area UASI THIRA were consulted in the preparation of this City of Palo Alto THIRA. 1 Office of Emergency Services (OES): Executive Summary (Rev. 8/24/12) 4 3 Goal Setting Presidential Policy Directive 8: National Preparedness sets forth a national goal for “a secure and resilient Nation with the capabilities required across the whole community to prevent, protect against, mitigate, respond to, and recover from the threats and hazards that pose the greatest risk”2. To achieve this, the National Preparedness Goal identifies 31 necessary core capabilities. The City of Palo Alto Executive Team reviewed the National Preparedness Goal and through discussion established a more refined set of desired outcomes for the City based on the 31 core capabilities. Figure 3-1 National Preparedness Core Capabilities The following statements represent an ideal condition of the whole community’s capability to prevent, protect against, mitigate, respond to, and recover from the threats and hazards of most concern. 1. Planning Conduct a consolidated, coordinated, integrated planning process to ensure participation by the whole community using an all hazards approach and defined planning cycles. 2 National Preparedness Goal 5 2. Public Information and Warning Provide information in a timely and appropriate manner to the affected population, including those with functional needs. Information should be consistent with the threat or hazard and enable people to take appropriate actions or protective measures. 3. Operational Coordination Establish and maintain a unified and coordinated operational Incident Command System (ICS) compliant structure and process that appropriately integrates all critical stakeholders to include private/public partners (e.g. hospitals, residents, Emergency Services Volunteers, schools, businesses, etc.) and supports the execution of core capabilities. Prevention 4. Forensics and Attribution Conduct investigation, evidence collection, and analysis for criminal prosecution as well as assist in preventing initial or follow-on terrorist acts. 5. Intelligence and Information Sharing Interface with allied public safety agencies, regional planning entities, and other relevant stakeholders to collect, analyze, and disseminate timely, accurate, and actionable information. 6. Interdiction and Disruption Coordinate with other agencies to facilitate interdiction of cargo and persons that could present a threat to the City of Palo Alto and Stanford University. 7. Screening Search and Detection Screen and search cargo, packages, and persons if/when legally permissible and justified. For example, observe safety protocols with those entering Stanford Stadium for certain security-risk events. Protection 8. Access Control and Identity Verification Establish verification of identity to authorize, grantor deny physical and cyber access to critical infrastructure, key asset locations, and networks. 9. Cybersecurity Protect against malicious activity directed toward critical infrastructure, key resources, and networks. 6 10. Physical Protective Measures Protect people, structures, materials, products, and systems of key operational activities and critical infrastructure sectors against identified or perceived threats. 11. Risk Management for Protection Programs and Activities Complete and/or encourage risk assessments, using standardized methodologies/models, for critical infrastructure/key resources (CIKR) and assets. 12. Supply Chain Integrity and Security Accounting for reliance on digital technology and modern management practices, work with and encourage private sector to build resiliency in the supply chain and develop tangible and intellectual methods to protect it. Mitigation 13. Community Resilience Engage the whole community in improving resilience through development and implementation of local risk management plans, techniques, strategies, training, and exercises. 14. Long–term Vulnerability Reduction Implement ongoing strategies to achieve measurable decreases in the long-term vulnerability of critical infrastructure, systems, and community features at risk to identified threats and hazards. 15. Risk and Disaster Resilience Assessment Maintain a risk assessment that includes identification and analysis of information about security gaps, localized vulnerabilities and risk consequences in City systems and facilities. 16. Threats and Hazards Identification Continually review/identify/maintain the assessment of identified threats and hazards. Response 17. Critical Transportation Establish physical access through appropriate transportation corridors and deliver required resources in an effort to save lives and to meet the needs of disaster survivors. 18. Environmental Response/Health and Safety Conduct health and safety hazard and critical systems assessments and disseminate guidance and resources, including the deployment of hazardous materials teams, to support environmental health and safety actions for response personnel and the affected population and 7 area. Conduct water sampling from established locations to determine potential access breach and/or contamination. 19. Fatality Management Services Conduct operations to recover fatalities in coordination with Operational Area/regional/state, federal, and NGO partners. 20. Mass Care Services Move and deliver resources and capabilities to meet the needs of disaster survivors, including individuals with access and functional needs and others who may be considered at-risk. Coordinate operations with government and NGO assistance partners. 21. Mass Search and Rescue Operations Conduct search and rescue operations to locate and rescue persons in distress. 22. On-Scene Security and Protection Establish a safe and secure environment for the affected area. 23. Operational Communications Establish and maintain the capability and capacity for timely and sufficient integrated communications in support of security, situational awareness, and operations. This includes redundant capabilities and resilient systems and facilities. 24. Public and Private Services and Resources Mobilize and coordinate governmental, nongovernmental, and private sector resources within and outside the affected areas to save lives, sustain lives, meet basic human needs, stabilize the incident, and transition to recovery. 25. Public Health and Medical Services With operational area support as needed, complete triage and initial stabilization of casualties and begin coordination of transport to definitive care for those likely to survive their injuries. 26. Situational Assessment Deliver information sufficient to inform City decisions, through collaboration with key partners, regarding immediate life-saving and -sustaining activities and engage governmental, private, and civic-sector resources within and outside of the affected area to meet basic human needs and stabilize the incident and maintain public services. 27. Infrastructure Systems Decrease and stabilize immediate infrastructure threats to the affected population, following all City EOP procedures. 8 Recovery 28. Economic Recovery Develop a plan with whole community partners, with a specified timeline for redeveloping community infrastructures to contribute to resiliency, accessibility, and sustainability. 29. Health and Social Services Restore basic health and social services functions with support from Operational Area/state/federal, and NGO partners. 30. Housing Assess preliminary housing impacts and needs, identify currently available options for temporary housing, and plan for permanent housing in coordination with Operational Area/state/federal, and NGO partners. 31. Natural and Cultural Resources Mitigate impacts, stabilize natural and cultural resources, and conduct a preliminary assessment of the impacts to identify and implement protections during the various stages of incident management—from stabilization through recovery. 4 Hazard Identification and Prioritization 4.1 Identified Hazards and Threats Several City and regional emergency management and planning documents were reviewed to identify a comprehensive list of hazards for consideration. These documents address both natural and human caused hazards that have the potential to impact Palo Alto and the Bay Area. Many of these documents estimate the impacts that result from the identified hazards. City policies that aid in emergency prevention, protection, mitigation, response, and recovery are highlighted in these documents. The reviewed documents which were integral in providing key information are listed below: City of Palo Alto Emergency Operations Plan, June 2007 Palo Alto City Council Priority Update on Emergency Preparedness, September 2010 City of Palo Alto Local Hazard Mitigation Plan, 2011 City of Palo Alto Energy Assurance Plan, July 2013 After Action Report Power Outage and Plane Crash, May 2010 After Action Report Winter Storm of December 23, 2012, February 2013 City of Palo Alto Emergency Planning Strategic Plan, November 2009 9 State of California THIRA Draft, December 2012 Bay Area Urban Area Security Initiative THIRA, December 2012 San Francisco THIRA, 2012 National Planning Scenarios (See table 4-1 below) San Francisco Bay Area Regional Emergency Coordination Plan, March 2008 City of Palo Alto Comprehensive Plan, July 20073; Land Use Designation Map, March 2011; Housing Element, November 2013; Updated version to be released in 2014/2015 In addition to the documents listed above, the Infrastructure Blue Ribbon Commission Final Report on Palo Alto’s Infrastructure: Catching Up, Keeping Up, and Moving Ahead (December 2011) specifically helped to identify the City’s critical facilities and infrastructure used in estimating impacts and assessing vulnerability. Table 4-1 National Planning Scenarios Scenario 1: Nuclear Detonation Scenario 2: Biological Attack – Aerosol Anthrax Scenario 3: Biological Disease Outbreak – Pandemic Influenza Scenario 4: Biological Attack - Plague Scenario 5: Chemical Attack – Blister Agent Scenario 6: Chemical Attack – Toxic Industrial Chemicals Scenario 7: Chemical Attack – Nerve Agent Scenario 8: Chemical Attack – Chlorine Tank Explosion Scenario 9: Natural Disaster – Major Earthquake Scenario 10: Natural Disaster – Major Hurricane Scenario 11: Radiological Attack – Radiological Dispersal Devices Scenario 12: Explosives Attack – Bombing Using Improvised Explosive Devices Scenario 13: Biological Attack – Food Contamination Scenario 14: Biological Attack – Foreign Animal Disease (Foot and Mouth Disease) Scenario 15: Cyber Attack 3 The City is in the process of updating the 1998-2010 Palo Alto Comprehensive Plan which will contain updated goals, policies, and programs relating to safety and natural hazards. The update is expected to be completed by the end of 2015 and will have an expected horizon year of 2030. The updated Comprehensive Plan will be consistent with this Threat and Hazard Identification and Risk Assessment. 10 Table 4-2 Comprehensive List of Hazards and Definitions presents the comprehensive list of hazards as approved by the Executive Committee and considered by the Stakeholder Group. Table 4-2 Comprehensive List of Hazards and Definitions Natural Hazard Definition Earthquake An earthquake is a phenomenon resulting from the sudden release of stored energy in the crust of the Earth in the form of seismic waves. They can devastate regions and destroy nearly any type of asset. They can cause injuries and death due to falling debris and broken glass. A major earthquake could trigger significant landslides, spark fires, and release toxic chemicals. If an earthquake occurred during the rainy winter season, landslides would be worsened and flooding could occur, exacerbated by damaged creek culverts and storm drains. Extreme Heat A heat wave is defined as prolonged periods of excessive heat, often combined with excessive humidity. Extreme heat is defined as temperatures that hover ten degrees or more above the average high temperature for the region and last for several weeks. The main concern in periods of extreme heat is the potential public health impact, such as heat exhaustion or heat stroke. Flood/Winter Storm A flood is any high flow, overflow or inundation by water which causes or threatens damage. Flooding is often caused by winter storms in the City of Palo Alto. Flooding can contaminate potable water, wastewater, and irrigation systems, which may negatively affect the quality of the water supply and result in an increase of water and food borne diseases. Severe winter storms can cause flooding. High Wind Wind is associated with multiple natural hazards. In some hazards, wind is the primary cause of damage, while in others, wind plays a contributory or auxiliary role. Damaging wind is primarily associated with hurricanes, tornadoes, downbursts, severe thunderstorms, and winter storms. Wind plays a contributory role in wildfire generation and propagation and can exacerbate severe droughts as well as cause trees to fall on power lines. Landslides In a landslide, masses of rock, earth or debris move down a slope. Landslides may be small or large, slow or rapid. They are activated by storms, earthquakes, fires, alternate freezing and thawing, and steepening of slopes by erosion or human modification. 11 Public Health Pandemic The most readily apparent public health emergency is an outbreak of influenza pandemic, although other public health emergencies are just as likely. An influenza pandemic is a worldwide outbreak of disease that occurs when a new influenza virus appears in human population, causes serious illness and then spreads easily from person to person worldwide. Pandemics are different from seasonal outbreaks of the flu. Since 2005, a high virulent strain of bird flu (H5N1), which developed in Asia, has steadily spread in birds to the Middle East, Africa, and Europe. The fatality rate of this particular strain is more than 50 percent. The Center for Disease Control and Prevention (CDC) has estimated that, in the US alone, a "minor" influenza pandemic could infect up to 200 million people and cause between 100,000-200,000 deaths. The potential financial impact on the US of this type of pandemic is estimated at $166 billion. Pandemics could continue for up to 24 months and cause major disruptions in supply chains for essential goods and services. Other outbreaks could include H1N1, Whooping Cough, Salmonella, E. coli, and Measles. Tornado A tornado appears as a rotating, funnel-shaped cloud that extends from a thunderstorm to the ground with whirling winds that can reach 300 miles per hour. Damage paths can be in excess of one mile wide and fifty miles long. Waterspouts are tornadoes that form over water. Tsunami A tsunami is a sea wave of local or distant origin that results from large-scale seafloor displacements associated with large earthquakes, major submarine slides or exploding volcanic islands. Wildland Fire A wildfire is an uncontrollable fire beginning in a wilderness area, typified by its large size, and ability to spread quickly or change direction suddenly. High temperatures and drought followed by an active period of vegetation growth provide the most dangerous conditions. Wildfires can affect any type of asset and may threaten major population centers when they breakout on the rural-urban fringe. Technological Definition 12 Hazard Airplane Accident Aviation accidents may be caused by problems originating from mechanical difficulties, pilot error or acts of terrorism. Airplane accidents can result from aircraft experiencing trouble while in flight or from mid-air collisions between aircraft flying over or near Palo Alto since the City lies in the flight path of two international airports: San Jose and San Francisco. There is also the potential for this type of accident to occur over water. Dam Failure Flooding inundation areas in the event of dam failure extend across a wide region of northeastern Palo Alto. Reservoir failures that would affect Palo Alto include Felt Lake, Searsville Lake, and Foothills Park (Boronda Lake). Financial Disruption A situation where the markets cease to function in a regular manner, typically characterized by rapid and large market declines. Market disruptions can result from both physical threats to the stock exchange or unusual trading (as in a crash). In either case, the disruption typically causes panic and results in disorderly market conditions. Food/Water Contamination A water system can become contaminated as a result of flooding or by saltwater intrusion. Food contamination refers to the presence in food of harmful chemicals and microorganisms which can cause consumer illness. Hazardous Materials Spill The release of a hazardous material to the environment could cause a multitude of problems. Although these incidents can happen almost anywhere, certain areas of the city are at higher risk, such as near roadways that are frequently used for transporting hazardous materials and locations with industrial facilities that use, store or dispose of such materials. Areas crossed by railways, waterways, airways, and pipelines also have increased potential for mishaps. Hazards can occur during production, storage, transportation, use or disposal. Communities can be at risk if a chemical is used unsafely or released in harmful amounts into the environment. Hazardous materials can cause death, serious injury, long-lasting health effects, and damage to buildings, the environment, homes, and other property. 13 Oil Spill An oil spill is the release of a liquid petroleum hydrocarbon into the environment due to human activity or technological error. The term is usually applied to marine oil spills, but spills can also occur on land. Spills may be due to releases of oil from tankers, offshore platforms, and drilling rigs and wells. An oil spill represents an immediate fire hazard and can contaminate drinking water supplies. Contamination can also have an economic impact on tourism and marine resource extraction industries. Clean up and recovery is time and cost consuming. Power Blackout/Energy Shortage/Utilities Failure Energy disruptions are considered to be a form of Lifeline System Failure. This can be the consequence of any of the other hazards identified or as a primary hazard, absent of an outside trigger. A failure could involve the City's potable water system, power system, natural gas system, wastewater system, communication system or transportation system. Train Accident Most train accidents are caused by human error, often relating to communications, speed limits, and braking. Train accidents also can occur because of equipment failure. Rail accidents include derailment, collisions, railroad grade crossing, obstruction, explosion or fire/violent rupture. Urban Fire In addition to the areas within the City limits considered to be in the Wildland Urban Interface (WUI), the more densely built “flatlands” are also at risk. The City has over 25,000 housing units and a significant business base. The proximity of structures to each other within the City creates additional exposure to widespread urban fire. Localized, single-structure fires sometimes occur in Palo Alto. Major uncontrolled events are a possibility, but rarely occur. Human Caused Hazard Definition Agro-Terrorism Agro-terrorism is the use of a biological or chemical agent against crops, livestock or poultry. The agent could be any of a wide range of pathogens or toxins. Agro-terrorism may be used to endanger public heath, to reduce the food supply or as a strategic economic weapon. Aircraft as a weapon Aircraft as a weapon (AAW) is a suicide attack using an airplane to target an asset. The primary explosive is the airplane's fuel supply. Aircraft include but are not limited to large commercial passenger craft, cargo craft, small single or double engine private craft, gliders, helicopters, and lighter-than-aircraft. 14 Biological Attack (contagious and non-contagious) A contagious biological attack is an attack on a population using a communicable, infectious disease. Effects occur after an incubation period which varies with the biological strain in use. They can quickly infect large populations. Bioterrorism can cause mass panic and societal disruption. Chemical Agent/Toxic Inhalation Release Chemical weapons kill by attacking the nervous system and lungs or by interfering with a body's ability to absorb oxygen. Some are designed to incapacitate by producing severe burns and blisters. These include such agents as mustard, tabun, sarin (GB), and nerve gas. Chemical agents could be introduced through an HVAC system or air inlets in buildings such as apartments, commercial offices or public facilities. Civil Disorder Civil disorder refers to unrest caused by a group of people and may include terrorist activities. Public demonstrations have the potential to lead to looting and rioting. There are many potential causes for civil disorder including: animal rights, labor disputes, civil rights, campus related issues, abortion rights, neighboring jurisdictions, political issues, events (sports, music, etc.), and spontaneous miscellaneous events. Potential consequences from acts of civil disorder include: disruptions of police and city services, closure of roads, rioting, property damage, and injuries to protesters, police officers, and uninvolved parties. Conventional Attack Light armed attack (small arms (ballistics) which include guns and rockets or stand-off weapons such as rocket propelled grenades or mortars) with one or more people acting for a terrorist group, anti- government/anti-political group, etc. Major Crime A major criminal incident (shooting, homicide, kidnapping) including multiple suspects or multiple victims with an ongoing threat to the community. Cyber Attack A cyber terrorist can infiltrate many institutions including banking, medical, education, government, military, and communication and infrastructure systems. The majority of effective malicious cyber- activity has become web-based. Recent trends indicate that hackers are targeting users to steal personal information and moving away from targeting computers by causing system failure. 15 Hostage/Assassin A hostage situation includes a person or group of people seized or held as security for the fulfillment of a condition. An assassin is a person who murders an important person in a surprise attack for political or religious reasons. IED Improvised Explosive Devices (IEDs) are constructed using conventional explosives and flammable materials. There are a variety of detonation methods. Conventional explosives include, but are not limited to: ammonium nitrate and fuel oil, TATP, TNT, RDX, PETN, C4, Semtex or Dynamite. Flammable materials include, but are not limited to: gasoline, kerosene, alcohol, iodine crystals, magnesium, glycerin or aluminum powder. An IED is likely to cause localized consequence primarily in the form of casualties and economic impact. Nuclear Attack/Acts of War The detonation of a nuclear weapon meets the US DODs definition of a Weapon of Mass Destruction, which includes any weapon or device that is intended or has the capability to cause death or serious bodily injury to a significant number of people through the release of toxic or poisonous chemicals or their precursors, a disease organism or radiation or radioactivity. A nuclear bomb attack could occur without warning and cause mass devastation within seconds. Radiation can exist in the atmosphere and in the ground for years after an event. A nuclear attack would cause more damage in a metropolitan area. Radiological Dispersion Device (RDD) RDDs (commonly known as “dirty bombs”) consist of radioactive materials wrapped in conventional explosives, which upon detonation release deadly radioactive particles into the environment. Sabotage/Theft Sabotage is a deliberate action aimed at weakening another entity through subversion, destruction, obstruction or destruction. The result of sabotage could be the destruction or damage of a vital facility. Some criminals have engaged in sabotage for reasons of extortion. Political sabotage is sometimes used to harass or damage the reputation of a political opponent. Terrorism Terrorist activities include bombings, kidnappings, shootings, and hijackings. 80% of terrorist activity is perpetrated through the use of explosives, and the other 20% is a combination of arson, vandalism, and assassination. The actual use of terrorist chemical, nuclear, and biological weapons has occurred less than a handful of times in the last 50 years. The common kinds of terrorist situations (explosions, fires, vandalism, and shootings) are the same kind of critical incidents first responders handle on a daily 16 basis. Terrorist activity can be conducted by an active shooter, an individual actively engaging in killing or attempting to kill people in a confined and populated area using a firearm. Targets of an armed attack vary; however, in recent history, schools, office buildings, federal/state owned buildings, religious institutions, military installations, and large public areas have all been subject to armed attacks. An active shooter may be a disgruntled student or group of students, an employee or an anti-government/anti- political/extremist citizen or group. Vehicle Born IED Vehicle Born Improvised Explosive Devices (VBIEDs) are constructed using conventional explosives and flammable materials. VBIEDs involve the use of cars, trucks, and other vehicles as the package/container to deliver explosive payloads to a target. Larger vehicles enable larger amounts of explosives, resulting in a greater impact. Functioning of devices can vary within the same methods as the package types and can have the same common characteristics as other IEDs. Some examples in the U.S. include the 1993 World Trade Center bombing (a precursor to 9/11) and the Murrah Federal Building in Oklahoma City. Workplace Violence Workplace violence is violence or the threat of violence against workers. It includes any act or threat of physical violence, harassment, intimidation or other threatening disruptive behavior that occurs at the worksite. It can occur at or outside the workplace and can range from threats and verbal abuse to physical assaults and homicide. It can affect and involve employees, clients, customers, and visitors. Workplace violence includes locations such as churches, malls, etc. and may be the result of a person acting alone. The Stakeholder Group, through a facilitated exercise reviewed the comprehensive list of hazards/threats and prioritized them to identify those of most concern. The prioritization methodology is presented in the following sections. 4.2 Natural Hazard Prioritization Each natural hazard was rated by the sum of three criteria. The first criterion was estimated likelihood of future occurrence on a scale of 1 - 4. The second criterion was potential impacts on a scale of 1 -4. Both of these scales are presented in Table 4-3 Natural Hazards Rating Criteria. The third criterion was based on results from a public survey conducted during the 2012 local hazard mitigation planning process. Respondents were asked to select the five hazards of most concern. The percentage of responses for the identified hazards was scored on a 10 point scale. For each hazard, the three criteria were summed, and the natural hazards with the highest rating were included in the hazards of most concern for the City of Palo Alto. 17 Table 4-3 Natural Hazards Rating Criteria Natural Hazards Probability Rating Criteria Based on estimated likelihood of occurrence from historical data Score Unlikely (Less than 1% probability in next 100 years or has a recurrence interval of greater than every 100 years.) 1 Somewhat Likely (Between 1 and 10% probability in next year or has a recurrence interval of 11 to 100 years.) 2 Likely (Between 10 and 100% probability in next year or has a recurrence interval of 10 years or less.) 3 Highly Likely (Near 100% probability in next year or happens every year.) 4 Natural Hazards Potential Impacts Rating Criteria Based on percentage of damage to typical facility in community Score Negligible - less than 10% damage 1 Limited - between 10% and 25% damage 2 Critical - between 25% and 50% damage 3 Catastrophic - more than 50% damage 4 Table 4-4 Natural Hazard Rating Results Natural Hazard Probability Impact Survey Rating Score Earthquake 2 4 9 15 Extreme Heat 2 1 0 3 Flood* 3 2 4 9 High Wind 2 1 0 3 Landslides 3 1 0 4 Public Health Pandemic 2 3 2 7 Severe Winter Storm* 3 2 6 11 Tornado 1 1 0 2 Tsunami 1 1 0 2 Wildland Fire 3 3 1 7 *Most severe impacts of winter storms are flooding. These two hazards were combined for a Rating Score of 10. 18 4.3 Technological Hazard Prioritization Each technological hazard was reviewed for its potential to occur. The Stakeholder Group shared knowledge, concerns, and other pertinent information to come to a consensus on rating each technological hazard as low, medium, high or very high. Table 4-5 Technological Hazards Rating Criteria Technological Hazards Ranking Criteria Rating An event is imminent. Experts have confirmed potential for occurrence. Very High An event is expected/probable. Experts have confirmed potential for occurrence. High An event is possible. Potential for occurrence is assumed but not verified. Medium An event is unlikely. Potential for occurrence is extremely limited. Low Table 4-6 Technological Hazard Rating Results Technological Hazard Rating Airplane Accident High Dam Failure* Low Financial Disruption Low Food/Water Contamination Medium Hazardous Materials Spill High Oil Spill Medium Power Blackout/Energy Shortage/Utilities Failure Medium Train Accident Medium Urban Fire High * Rating results shown have been considered as independent hazards and do not include secondary or cascading events. Dam failure includes technological failure risk (engineering) and does not include secondary risk from an earthquake. 19 4.4 Human Caused Threat Prioritization Each human caused threat was reviewed for its potential to occur. The Stakeholder Group shared knowledge, concerns, and other pertinent information to come to a consensus on rating each human caused threat as low, medium, high or very high. Table 4-7 Human Caused Threat Rating Criteria Human Caused Threat Ranking Criteria Rating The likelihood of a threat, weapon, and tactic being used against a site or building is imminent. Internal decision makers and/or external law enforcement and intelligence agencies determine the threat is credible. Very High The likelihood of a threat, weapon, and tactic being used against a site or building is expected. Internal decision makers and/or external law enforcement and intelligence agencies determine the threat is credible. High The likelihood of a threat, weapon, and tactic being used against a site or building is possible. Internal decision makers and/or external law enforcement and intelligence agencies determine the threat is known, but is not verified. Medium The likelihood of a threat, weapon, and tactic being used in the region or against the site or building is negligible. Internal decision makers and/or external law enforcement and intelligence agencies determine the threat is non-existent or extremely unlikely. Low Table 4-8 Human Caused Threat Rating Results Human Caused Threat Rating Agro-Terrorism Medium Aircraft as a weapon Low Biological Attack Medium Chemical Agent/Toxic Inhalation Release Medium Civil Disorder Medium Conventional Attack Medium Major Crime Very High Cyber Attack Very High Hostage/Assassin High IED Medium Nuclear Attack/Acts of War Low Radiological Dispersion Device Medium 20 Human Caused Threat Rating Sabotage/Theft High Terrorism Medium Vehicle Born IED Medium Workplace Violence Very High 4.5 Threats and Hazards of Most Concern The prioritization process resulted in a pared down listing of natural, technological, and human caused hazards/threats of most concern to the City of Palo Alto and its local partners. These are presented in Table 4-9 Summary of All Hazards Prioritization. To complete the THIRA process, we researched each of these hazards/threats to develop a more complete understanding of their characteristics. Section 5 presents detailed hazard and threat profiles. Table 4-9 Summary of All Hazards Prioritization Threats and Hazards of Most Concern Natural Technological Human-caused Earthquake Airplane Accident Major Crime Flood/Severe Winter Storm Hazardous Waste/ Materials Spill Cyber Attack Urban Fire Hostage/Assassin Sabotage/Theft Workplace Violence 21 5 Hazard Profiles This section contains profiles detailing the characteristics of the hazards of most concern. 5.1 Non-Natural Hazard Profile Structure Technological and human caused threats and hazards require a different approach to evaluating likelihood and potential impacts as compared to natural hazards. With natural hazards, as done in the local hazard mitigation planning process, an evaluation is based on past occurrences, weather patterns, geography, and other relevant earth science. Technological and human caused threats and hazards are not dependent upon earth science and do not occur with regular patterns. For that reason, a modified approach is appropriate for evaluating the potential of technological and human caused threats and hazards. Each technological or human caused hazard profile contains the following components: Application Mode: describing the human act(s) or unintended event(s) necessary to cause the hazard to occur. Duration: the anticipated length of time the hazard is present on the target. For example, the duration of an earthquake may be just seconds, but a chemical warfare agent such as mustard gas, if un-remediated, can persist for days or weeks under the right conditions. Dynamic/Static Characteristic: describing the hazard’s tendency or that of its effects, to either expand, contract or remain confined in time, magnitude, and space. For example, the physical destruction caused by an earthquake is generally confined to the place in which it occurs, and it does not usually get worse, unless there are aftershocks or other cascading failures; in contrast, a cloud of chlorine gas leaking from a storage tank can change location by drifting with the wind and can diminish in danger by dissipating over time. Mitigating Conditions: characteristics of the target and its physical environment that can reduce the effects of a hazard. For example, earthen berms can provide protection from bombs; exposure to sunlight can render some biological agents ineffective; and effective perimeter lighting and surveillance can minimize the likelihood of someone approaching a target unseen. Exacerbating Conditions: characteristics that can enhance or magnify the effects of a hazard. For example, depressions or low areas in terrain can trap heavy vapors, and proliferation of street furniture (trash receptacles, newspaper vending machines, mail boxes, etc) can provide concealment opportunities for explosive devises. 22 5.2 Earthquake Hazard Summary Past land use decisions in Palo Alto have not always taken hazards into consideration. Moreover, older buildings and infrastructure reflect the construction and engineering standards of their era, which in most cases fall short of current standards for seismic safety. As a result, a portion of the City, including 130 soft story structures, would be at some risk in the event of a major earthquake. The greatest hazards are associated with fault rupture and ground shaking, although liquefaction hazards are significant in the area east of Highway 101 due to the porous nature and high water content of the soil. Landslides, a hazard that is common in the foothills of Palo Alto, may result from heavy rain, erosion, removal of vegetationor human activities. Settlement and subsidence due to groundwater withdrawal has historically been a problem in the southern and eastern areas of the City of Palo Alto, but has been largely halted by groundwater recharge efforts and reduced pumping. Seismically-induced flooding is a hazard due to the possibility of dam failure at Felt Lake and Searsville Lake and the potential for levee failure near the San Francisco Bay. To help mitigate the damages that may result from a potential earthquake, Palo Alto strictly enforces uniform building code seismic safety restrictions and provides incentives for seismic retrofits of structures in the University Avenue/Downtown area. The City also allows development rights achieved through seismic upgrading of specified sites to be transferred to designated eligible receiver sites per Program N - 71 in the Comprehensive Plan and per the Palo Alto Municipal Code, Section 18.18.080. Palo Alto has completed seismic improvements to facilities and critical infrastructure as part of its mitigation planning, including City Hall, library buildings, the Art Center, and water reservoirs among others. 5.3 Flood/Severe Winter Storm Hazard Summary Flood hazards, including tidal flooding from overtopping of coastal levees during extreme high tide events in the Bay and fluvial flooding from creeks overflowing their banks, are likely to continue to occur in Palo Alto. Winter storms, which generate large amounts of rain and heavy winds, can result in flooding. As noted in the 2011 LHMP, the City minimizes exposure to flood hazards through its participation in the Federal Emergency Management Agency’s (FEMA) National Flood Insurance Program (NFIP). FEMA makes NFIP flood insurance available to Palo Alto residents and businesses as a result of the City’s adoption of required floodplain management regulations into its Municipal Code (Chapter 16.52) that promote public health, safety and general welfare, and minimize damages due to flood conditions. City staff reviews proposed development in flood prone areas and enforces the floodplain management regulations for specified building activity in Special Flood Hazard Areas, as depicted on FEMA’s Flood Insurance Rate Maps (FIRMs). In 1990, the City created an independent enterprise fund to fund needed improvements to the storm drain system with revenue generated through user fees and developed a Storm Drain Master Plan in 1993 to identify and prioritize a set of projects to increase system capacity and reduce the incidence of street flooding. Property owners approved a ballot measure in 2005 to increase the City’s monthly storm drain fee and thereby provided funding to implement a set of seven high-priority capital improvement projects to upgrade the storm drain system. The City has long been a partner with the Santa Clara Valley Water 23 District (SCVWD) who constructed channel upgrades (100-year flood protection) in the 1980’s and 1990’s to reduce flood risks from Adobe, Matadero, and Barron Creeks. San Francisquito Creek remains a substantial flood risk to the community, along with tidal flooding during extreme high tide events. Following the historic 1998 flood, five local agencies from two counties (the cities of Palo Alto, Menlo Park, and East Palo Alto, the County of San Mateo Flood Control District, and the Santa Clara Valley Water District) formed the San Francisquito Creek Joint Powers Authority (SFCJPA) to plan, design, and implement flood, environmental, and recreational projects. Specifically, the San Francisquito Creek Joint Powers Authority is developing a comprehensive regional plan for the San Francisquito Creek watershed that will improve the level of flood protection to Palo Alto and surrounding communities. The SFCJPA’s initial capital project, being planned in conjunction with the City of Palo Alto, is designed to increase creek flow capacity to protect people and property from fluvial flooding along a critical urban section of the creek between Highway 101 and San Francisco Bay. Palo Alto, along with the entire Bay Area, is also subject to increasing flood risk as a result of rising sea levels, requiring city planners to collaborate with regional organizations and projects, such as the SCVWD, SFCJPA, the US Army Corps of Engineers’ South San Francisco Bay Shoreline Study, and the State Coastal Conservancy Salt Pond Restoration Project, who have each initiated studies on impacts of sea level rise in the vicinity of Palo Alto. 5.4 Airplane Accident Profile Aircraft accidents in Palo Alto can result from an aircraft experiencing trouble or from mid-air collisions between aircraft flying over or near Palo Alto as they approach the three Bay Area Airports (San Francisco, Oakland, and San Jose), as well as Moffett Field. In February 2010, a small aircraft left the Palo Alto Airport and collided with power lines, causing a City-wide power outage. The Palo Alto electrical utility feedpoint to PG&E (and the grid) is a single point, near the airport. Application mode: Aviation accidents may be caused by problems originating from mechanical difficulties, pilot error or acts of terrorism. Extreme weather conditions may also increase the potential of an accident. Airplane accidents can result from major aircraft experiencing trouble while in flight or from mid-air collisions between aircraft flying over or near Palo Alto. There is also the potential for this type of accident to occur over water.4 Duration: An airplane accident can occur in an instant and without notice or could be reported but not remediated, lasting a few hours. Clean up after an accident could take days to weeks. Longer term actions include repairing any buildings and infrastructure that may have been damaged due to the accident and investigating the cause of the incident. Dynamic/static characteristics: The number of fatalities/injuries and the area damaged by the aircraft accident can vary depending on the type and magnitude of the accident. While damage may be concentrated to the location of the incident, secondary impacts from the accident, such as explosion and fire, as well as debris and hazardous materials, could spread from the initial area of impact. 4 City of Palo Alto EOP (2007) 24 Mitigating conditions: The City’s Emergency Operations Plan (EOP) outlines a response plan to airplane accidents. The EOP also notes that consequences of an airplane accident from a small aircraft associated with Palo Alto airport would be low. Issues in responding to the February 2010 incident were identified in an After Action Report. These issues have been addressed to provide better response to a potential future incident. Exacerbating conditions: The City of Palo Alto lies between two international airports, San Jose and San Francisco. Within the boundaries of Palo Alto, Santa Clara County operates the Palo Alto Municipal Airport, a general aviation airport. There is potential for an accident to occur in the air or on the ground near these locations as well as over water in Palo Alto’s jurisdiction. 5.5 Hazardous Waste/Materials Spill Profile Hazardous waste/materials are widely used or created at facilities such as hospitals, wastewater treatment plants, universities and industrial/manufacturing warehouses. Several household products such as cleaning supplies and paint are also considered hazardous materials and can be found in households and stores. Hazardous materials include: • Explosives; • Flammable, non-flammable, and poison gas; • Flammable liquids; • Flammable, spontaneously combustible, and dangerous when wet solids; • Oxidizers and organic peroxides; • Poisons and infectious substances; • Radioactive materials; and • Corrosive materials.5 The release of a hazardous material to the environment could cause a multitude of problems. Although these incidents can happen almost anywhere, certain areas of the City are at higher risk, such as near roadways that are frequently used for transporting hazardous materials and locations with industrial facilities that use, store or dispose of such materials. Areas crossed by railways, waterways, airways, and pipelines also have increased potential for mishaps. Incidences can occur during production, storage, transportation, use or disposal of hazardous materials. Communities can be at risk if a chemical is used unsafely or released in harmful 5 National Archives and Records Administration, “Code of Federal Regulations Title 49: Transportation” (July 1 2012), http://ecfr/gpoaccess.gov/cgi/t/text/text- idx?c=ecfr;sid=54f867044f1c9e1af52443eb305e1360;rgn=div5;view=text;node=49%3A2.1.1.3.7 ;idno=49;cc=ecfr 25 amounts into the environment. Hazardous materials can cause death, serious injury, long- lasting health effects, and damage to buildings, the environment, homes, and other property.6 Application mode: Hazardous waste/materials spills may be accidental or intentional, and may occur at fixed facilities or on vehicles. Accidental Hazardous Waste/Materials Spill Hazardous materials accidents can range from a chemical spill on a highway to groundwater contamination by naturally occurring methane gas to a household hazardous materials accident.7 Potential hazards can occur during any stage of use from production and storage to transportation, use or disposal. Production and storage occurs in chemical plants, gas stations, hospitals, and many other sites. There are many reasons an unintentional hazardous waste/materials spill may occur. Some of these include: • Malfunction of equipment • Natural disaster • Accidents caused by humans8 Intentional Fixed Facility Hazardous Waste/Materials Spill Hazardous material spills at fixed facilities may be internal or external to the facility. External releases may involve industrial storage, firesor malicious acts. External releases may create airborne plumes of chemical, biologicalor radiological elements that can affect a wide area and last for hours or days. Internal releases occur inside buildings and can be caused by a chemical spill or release of a biological or radiological agent. Internal releases can affect all occupants of a building, particularly if the material is distributed throughout the building through the heating/ventilation system.9 Intentional hazardous material releases at fixed facilities might include: • Deliberate release of a hazardous substance by an employee of a facility that stores or uses hazardous materials or produces hazardous waste; • Deliberate release of a hazardous substance into the water supply • Detonation of a “dirty bomb” – an explosive device containing radiological or biological substances that are released into the air upon explosion; 6 City of Palo Alto EOP; Santa Clara County 2011 LHMP 7 University of Idaho Cooperative Extension System, http://www.uiweb.uidaho.edu/disaster/haz/hazmat.html 8 Innovateus, “What is a Chemical Spill?”, http://www.innovateus.net/earth-matters/what- chemical-spill 9 US Air Force, “Protective Actions for a Hazardous Material Release”, (22 October 2001), Http://emc.ornl.gov/CSEPPweb/data/Reports/Misc.%20Reports/HAZMAT.pdf 26 • Redirection of toxic waste into water supply or ventilation system; and • Delivery or placement of a hazardous material inside a building. Intentional Mobile Hazardous Waste/Materials Spill Intentional mobile releases may include: • Release of a chemical, biological or radiological agent from a moving vehicle or train; • Use of a vehicle as a dirty bomb, i.e. crashing a vehicle filled with hazardous materials into a structure or building or exploding the vehicle; • Targeting commercial/industrial chemical containers transported in bulk by both road and rail; • Release of hazardous materials from airplanes over densely populated areas; and • Release of hazardous materials into water from a boat. Duration: Accidental hazardous waste/materials spills can be reported immediately following the spill, thus reducing the amount of time the spill is left uncontained. Most hazardous waste/materials spills occur with little or no warning, and can be difficult to detect until symptoms present themselves to those affected.10 External releases may create airborne plumes of chemical, biologicalor radiological elements that can affect a wide area and last for hours or days. Internal releases will most likely require evacuation of a facility for hours to days. Both external and internal releases require extensive clean-up efforts, lasting from days to months depending on the type and magnitude of the spill. Dynamic/static characteristics: Both mobile and external hazardous materials releases can spread and affect a wide area, through the release of plumes of chemical, biological or radiological elements or leaks or spills. Conversely, internal releases are more likely to be confined to the structure the material is stored in. Chemicals may be corrosive or otherwise damaging over time. A hazardous materials release could also result in fire or explosion. Contamination may be carried out of the incident area by people, vehicles, wind, and water.11 Hazardous material releases are dynamic and may vary depending on the following factors: • Type and amount of agent released; • Environmental conditions – The micro-meteorological effects of the buildings and terrain can influence the travel of agents12; 10 US Air Force, “Protective Actions for a Hazardous Material Release”, (22 October 2001), Http://emc.ornl.gov/CSEPPweb/data/Reports/Misc.%20Reports/HAZMAT.pdf 11 FEMA, “Primer to Design Safe School Projects in Case of Terrorist Attacks,” FEMA 428, http://www.fema.gov/pdf/plan/prevent/rms/428/fema428_ch1.pdf 27 • Location of release (urban vs. rural, water vs. air); and • Remediation time, dependent on a locality’s or facility’s hazardous material release preparedness programs. Mitigating conditions: Facilities that store hazardous materials are reported to local and federal governments. Security measures at these facilities can be heightened. Many facilities have their own hazardous materials guides and response plans, including transportation companies who transport hazardous materials. The City’s EOP includes an annex identifying the actions and agencies involved in responding to a hazardous materials incident. The City of Palo Alto Fire Department administers the County’s hazardous materials emergency planning and community right-to-know program. They also maintain Hazardous Materials Business Plans for every business in the City that handles a hazardous material in quantities above the State’s reporting threshold. The City inspects and issues annual permits to approximately 500 businesses with annual hazardous materials permits that necessitate monitoring and inspection. In addition, the City of Palo Alto provides safe hazardous waste disposal for residents and small businesses at a specified Household Hazardous Waste (HHW) Station. Their HHW Program educates the public about the safe use, storage, disposal, and alternatives to hazardous products. 5.6 Urban Fire Profile The entire City of Palo Alto is at risk to major fires impacting a section of the City or a large complex. The City has over 25,000 housing units and a significant business base. The proximity of structures to each other within the City creates additional exposure to widespread urban fire. Localized, single-structure fires sometimes occur in Palo Alto. As of November 2013, the City had experienced three urban fires during the previous three months. Major uncontrolled fires are a possibility, but rarely occur.13 Application mode: Urban fires can be accidentally caused through human error including cooking accidents, smoking or unsafe use of woodstoves or space heaters. Malfunctioning electrical equipment is also a major cause of fire in urban areas.14 Fires originating in the Wildland-Urban Interface (WUI) also pose a threat as they can spread toward more developed areas and cause significant damage to structures, residents, and natural resources. Arson or the deliberate burning of property, is also a possibility within City limits. Arson attacks may be imposed upon structures, motor vehicles, wildland areas or other “nonstructural” properties. Duration: The duration of an urban fire is dependent on weather conditions, the magnitude of the fire, and fire suppression resources. Structural fires could burn for several hours before being fully contained. 12 FEMA, “Primer to Design Safe School Projects in Case of Terrorist Attacks,” FEMA 428, http://www.fema.gov/pdf/plan/prevent/rms/428/fema428_ch1.pdf 13 City of Palo Alto EOP (2007) 14 National Fire Protection Association, (29 January 2013), Urban Fire Safety, http://www.nfpa.org/safety-information/for-consumers/populations/urban-fire-safety 28 Dynamic/static characteristics: Weather conditions (wind and warm, dry temperatures) and the presence of fire fuel can cause fires to spread away from their source. Mitigating conditions: In the event of a major urban fire, auto-aid and mutual-aid agreements (with CAL FIRE) will be utilized, as outlined in the Palo Alto Emergency Operations Plan. The City strives to minimize exposure to wildland and urban fire hazards through rapid emergency response, a sufficient water supply, proactive fire code enforcement, public education programs, and adequate emergency management preparation. To ensure a sufficient water supply, an emergency water supply and storage project, initiated in 2007, was primarily completed by the City in late 2013/early 2014. This project provides Palo Alto with a self-sustaining emergency water supply through rehabilitating five City wells, constructing three new wells, constructing a new 2.5 million gallon reservoir and associated pump station and well, and upgrading an existing pump station (Mayfield Reservoir Pump Station). As part of the City’s emergency management preparation for wildland and urban fires, they designed and implemented the Palo Alto Foothills Fire Management Plan. This plan pertains to the Palo Alto Foothills area west of the Foothills Expressway and Junipero Serra Boulevard, which represents a Wildland Urban Interface (WUI) area. The plan addresses a broad range of integrated activities and planning documents to identify and mitigate the impacts of fire hazards in the Palo Alto Foothills Area. Fire mitigation project areas include the boundaries of Foothills Park and Pearson-Arastradero Preserve. In urban areas, arsonists may target abandoned buildings. Limiting the number of abandoned buildings or providing security near these buildings may deter arsonists. Both structure and wildland arson data can be analyzed to depict trends in copy cat arsonists as well as in weather and fuel conditions. Documenting these trends in a reporting system may assist in mitigating future cases. Exacerbating conditions: Increasing development in the wildland-urban interface can exacerbate the spread of a wildfire into developed areas, making these areas vulnerable. While planning and mitigation to reduce the risk of fire in Palo Alto’s WUI area is controlled through the Palo Alto Foothills Fire Management Plan, there is still potential a fire in this area could impact the City’s public safety, cultural and economic activities, and environmental and natural resource management. 5.7 Major Crimes Major criminal incidents include shooting, homicide, and kidnapping crimes that may include multiple suspects or multiple victims and are considered an ongoing threat to the community. These types of crime have an ability to impact the community in such a way that can undermine the quality of life within the Palo Alto community. Application mode: For reporting purposes, criminal offenses are divided into two major groups: Part I offenses and Part II offenses per the DOJ and FBI. Part I crimes comprise two categories: violent and property crimes. Aggravated assault, forcible rape, murder, and robbery are classified as violent, while arson, burglary, larceny-theft, and motor vehicle theft are 29 classified as property crimes. Part I crimes are collectively known as Index crimes, this name is used because the crimes are considered quite serious, tend to be reported more reliably than others, and are reported directly to the police. In Part II, the following categories are tracked: simple assault, curfew offenses and loitering, embezzlement, forgery and counterfeiting, disorderly conduct, driving under the influence, drug offenses, fraud, gambling, liquor offenses, offenses against the family, prostitution, public drunkenness, runaways, sex offenses, stolen property, vandalism, vagrancy, and weapons offenses. This categorization is informative as it links to Palo Alto Police Department’s Fiscal Year 2013 Annual Report. “Crime in Palo Alto has seen an overall decrease in the past five years. Violent crimes have continued to decrease, while property crimes have increased. The most notable is the increase in Residential and Auto Burglaries. Fiscal Year 2013 saw a sharp increase in residential burglaries. The Police Department responded with a directed enforcement campaign, and an increased presence in high risk areas. A total of 79 suspects were arrested for burglary, attempted burglary and other associated charges.” Figure 5-1 Statistics of Part I and Part II Crimes in Palo Alto from the Palo Alto Fiscal Year 2013 Annual Report Duration: A major crime may occur in a short amount of time, from seconds to hours, and it usually occurs without immediate notice. Dynamic/static characteristics: Major crimes can occur anywhere in the community. Mitigating conditions: The Palo Alto Police Department and Stanford Department of Public Safety participate in mutual aid and regional organizations to share information, capabilities, and other resources to prevent major crimes from occurring. Additionally, increased 2013 staffing and effective training of Palo Alto Police Department personnel will likely have deterrent effects. 30 Exacerbating conditions: Palo Alto businesses and residences are perceived as a soft target resulting in increased property crimes by criminals who live outside Palo Alto. The increase of such events increases the probability of a robbery going wrong resulting in a shooting or homicide event. 5.8 Cyber Attack Profile A cyber terrorist can infiltrate many institutions including banking, medical, education, government, military, and communication and infrastructure systems. The majority of effective malicious cyber-activity has become web-based. Recent trends indicate that hackers are targeting users to steal personal information and moving away from targeting computers by causing system failure.15 Application mode: Common types of cyber attacks are summarized in Table 5-1 Common Types of Cyber Attacks16 Table 5-1 Common Types of Cyber Attacks Type of Attack Description Denial of service A method of attack from a single source that denies system access to legitimate users by overwhelming the target computer with messages and blocking legitimate traffic. It can prevent a system from being able to exchange data with other systems or use the internet. Botnet A collection of compromised machines (bots) under (unified) control of an attacker (botmaster). Distributed denial of service A variant of the denial-of-service attack that uses a coordinated attack from a distributed system of computers rather than from a single source. It often makes use of worms to spread to multiple computers that can then attack the target. Exploit tools Publicly available and sophisticated tools that intruders of various skill levels can use to determine vulnerabilities and gain entry into targeted systems. Logic bombs A form of sabotage in which a programmer inserts code that causes the program to perform a destructive action when some triggering event occurs, such as terminating the 15 Symantec, “Internet Security Threat Report” Volume 17 (2011), www.symantec.com/threatreport 16 United States Government Accountability Office, “Critical Infrastructure Protection: Department of Homeland Security Faces Challenges in Fulfilling Cybersecurity Responsibilities”, Report #GAO-05-434 (May 2005), www.gao.gov/new.items/d05434.pdf 31 Type of Attack Description programmer’s employment. Phishing The creation and use of e-mails and Web sites—designed to look like those of well-known legitimate businesses, financial institutions, and government agencies—in order to deceive Internet users into disclosing their personal data, such as bank and financial account information and passwords. The phishers then take that information and use it for criminal purposes, such as identity theft and fraud. Sniffer Synonymous with packet sniffer. A program that intercepts routed data and examines each packet in search of specified information, such as passwords transmitted in clear text. Trojan horse A computer program that conceals harmful code. A Trojan horse usually masquerades as a useful program that a user would wish to execute. Virus A program that infects computer files, usually executable programs, by inserting a copy of itself into the file. These copies are usually executed when the infected file is loaded into memory, allowing the virus to infect other files. Unlike the computer worm, a virus requires human involvement (usually unwitting) to propagate. War dialing Simple programs that dial consecutive telephone numbers looking for modems. War driving A method of gaining entry into wireless computer networks using a laptop, antennas, and a wireless network adaptor that involves patrolling locations to gain unauthorized access. Worm An independent computer program that reproduces by copying itself from one system to another across a network. Unlike computer viruses, worms do not require human involvement to propagate. 32 One of the difficulties of malicious cyber activity is that its origin could be virtually anyone, virtually anywhere. Table 5-2 Common Sources of Cybersecurity Threats summarizes common sources of cybersecurity threats.17 Table 5-2 Common Sources of Cybersecurity Threats Threat Description Bot-network operators Bot-network operators are hackers; however, instead of breaking into systems for the challenge or bragging rights, they take over multiple systems in order to coordinate attacks and to distribute phishing schemes, spam, and malware attacks. The services of these networks are sometimes made available on underground markets (e.g., purchasing a denial-of-service attack, servers to relay spam or phishing attacks, etc.). Criminal groups Criminal groups seek to attack systems for monetary gain. Specifically organized crime groups are using spam, phishing, and spyware/malware to commit identity theft and online fraud. International corporate spies and organized crime organizations also pose a threat to the United States through their ability to conduct industrial espionage and large-scale monetary theft and to hire or develop hacker talent. Foreign intelligence services Foreign intelligence services use cyber tools as part of their information-gathering and espionage activities. In addition, several nations are aggressively working to develop information warfare doctrine, programs, and capabilities. Such capabilities enable a single entity to have a significant and serious impact by disrupting the supply, communications, and economic infrastructures that support military power—impacts that could affect the daily lives of U.S. citizens across the country. 17 United States Government Accountability Office, “Critical Infrastructure Protection: Department of Homeland Security Faces Challenges in Fulfilling Cybersecurity Responsibilities”, Report #GAO-05-434 (May 2005), www.gao.gov/new.items/d05434.pdf 33 Threat Description Hackers Hackers break into networks for the thrill of the challenge or for bragging rights in the hacker community. While remote cracking once required a fair amount of skill or computer knowledge, hackers can now download attack scripts and protocols from the Internet and launch them against victim sites. Thus, while attack tools have become more sophisticated, they have also become easier to use. According to the Central Intelligence Agency, the large majority of hackers do not have the requisite expertise to threaten difficult targets such as critical U.S. networks. Nevertheless, the worldwide population of hackers poses a relatively high threat of an isolated or brief disruption causing serious damage. Insiders The disgruntled organization insider is a principal source of computer crime. Insiders may not need a great deal of knowledge about computer intrusions because their knowledge of a target system often allows them to gain unrestricted access to cause damage to the system or to steal system data. The insider threat also includes outsourcing vendors as well as employees who accidentally introduce malware into systems. Phishers Individuals or small groups, that execute phishing schemes in an attempt to steal identities or information for monetary gain. Phishers may also use spam and spyware/malware to accomplish their objectives. Spammers Individuals or organizations that distribute unsolicited e- mail with hidden or false information in order to sell products, conduct phishing schemes, distribute spyware/malware or attack organizations (i.e., denial of service). Spyware/malware authors Individuals or organizations with malicious intent carry out attacks against users by producing and distributing spyware and malware. Several destructive computer viruses and worms have harmed files and hard drives, including the Melissa Macro Virus, the Explore.Zip worm, the CIH (Chernobyl) Virus, Nimda, Code Red, Slammer, and Blaster. Cyber-Terrorists Cyber-Terrorists seek to destroy, incapacitateor exploit critical infrastructures in order to threaten national security, cause mass casualties, weaken economies or target businesses, and damage public morale and confidence. 34 Threat Description Cyber-Terrorists may use phishing schemes or spyware/malware in order to generate funds or gather sensitive information. Given its location in Silicon Valley, Palo Alto is home to many large companies that could be subject to a cyber attack. Duration: The duration of a cyber attack is dependent on the complexity of the attack, how widespread it is, how quickly the attack is detected, and the resources available to aid in restoring the system. Dynamic/static characteristics: A cyber attack could be geared toward one organization, one type of infrastructure and/or a specific geographical area. The affected area could range from small to large scale. Cyber attacks generated toward large corporations can negatively affect the economy. The Congressional Research Service study (2008) found the economic impact of cyber attacks on businesses has grown to over $226 billion annually.18 Attacks geared toward critical infrastructure and hospitals can result in the loss of life and the loss of basic needs, such as power and water, to the general public. Cyber attacks can also lead to the loss of operational capacity. Mitigating conditions: Palo Alto has three levels of security to prevent cyber attacks: 1. A Symantech anti-virus protection for desktops and laptops; 2. Malware Protection Systems for Web and email systems; and 3. A Barracuda Firewall for the IT Network. In addition, the City is in the process of deploying a vulnerability management system to better protect the IT network. Access control to buildings, such as ID cards and badges, can help regulate the people who have access to an agency’s or corporations’ cyber network. Palo Alto information technology network locations include access control measures to prevent unauthorized access to these controlled areas. The City has an Energy Assurance Plan that focuses on minimizing energy interruptions during emergencies. This plan could be updated to include a contingency plan for keeping energy lifelines online given a cyber attack. Currently, the North American Electric Reliability Corporation (NERC) is responsible for ensuring energy industry compliance with Critical Infrastructure Protection (CIP) standards. These rules require organizations that deliver bulk electricity to the North American power grid to identify and protect critical cyber assets. In 18 Defense Tech. http://defensetech.org/2008/10/20/the-cyber-attack-danger/ 35 addition, bulk power suppliers must define methods, processes, and procedures for securing critical cyber assets. “Cyber assets” are loosely defined as all “programmable electronic devices and communication networks including hardware, software, and data.19 Exacerbating conditions: Humans are the weakest link in a chain of cyber security. It remains difficult to continuously monitor and manage human/operator vulnerability. However, to address this weakness the City has deployed an online security training program which all employees are required to complete annually. 5.9 Hostage/Assassin Profile A hostage situation includes a person or group of people seized or held as security for the fulfillment of a condition. An assassin is a person who murders an important person in a surprise attack for political, religious or monetary reasons. Application mode: A hostage crisis can develop when one or more individuals or an organized group of people seize people against their will and try to hold off authorities by force, often threatening to kill hostages if provoked or attacked. Typically hostage takers will issue demands, many times politically or religiously driven. Monetary demands are also possible. In cases where the hostage situation was improvised as an attempt to avoid capture for another crime, the demand usually revolves around exchanging the lives of the hostage(s) for transport to safety. Hostage takers are usually armed with explosives, handguns, and/or other weapons. Similar to a hostage situation, an assassination may be prompted by religious, political or monetary motives. Assassinations can also be militarily driven or done to avenge a grievance or to gain fame or notoriety. Car bombs and other explosives, poison, snipers, and handguns are most commonly used in assassination attempts. In most cases, the assassin will have detailed advanced knowledge of the intended victim’s itinerary in order to plan out the assassination. Most modern assassinations have been committed either during a public performance or transport, both because of weaker security and security lapses. Duration: A hostage crisis can range from a couple of hours to years. Assassinations occur without warning and, although they may take years to plan out, can transpire in a matter of seconds. Dynamic/static characteristics: For the most part, both hostage situations and assassinations are static in that they are confined to one location. However, both scenarios could escalate into a chase for the suspects, thus having the capacity to shut down an entire city or multiple locations simultaneously. In addition, if bombs or other explosive devices are used, impacts may be distributed throughout a larger area. Mitigating conditions: Many high profile dignitaries travel with security, making the ability to execute a hostage situation or assassination more difficult. Increased security in public places where these incidents are more likely to occur has the potential to discourage these types of events from taking place. The City’s police force includes a SWAT (Special Weapons and Tactics) Team and Crisis Negotiation Team, both of which are trained to contain these 19 NextLabs. http://www.nextlabs.com/html/?q=nerc-and-ferc-cyber-security-standards 36 situations. Additionally, multi-jurisdiction intelligence sharing forums improve the awareness of when such high profile visits take place; and enhanced coordination between these jurisdictions closes the common operational gaps should a response be necessary. The City of Palo Alto’s Office of Emergency Services hosts a monthly multi-jurisdictional intelligence sharing meeting that reinforces this concept. The Palo Alto Police Department also is integrated into the Northern California Regional Intelligence Center (NCRIC) through their Terrorism Liaison Officer (TLO) program that provides a direct conduit for intelligence sharing with this agency. Exacerbating conditions: The level of threat depends on the presence of dignitaries or notable figures in the City. The risk of a hostage/assassin situation is exacerbated when high level dignitaries visit, which occurs frequently. In addition, wealthy Silicon Valley executives live in the City and could be potential targets. 5.10 Sabotage/Theft Profile Sabotage is a deliberate action aimed at weakening another entity (business, government, etc.) through subversion, obstruction or destruction. The result of sabotage could be the destruction of a vital facility or the disruption of operations. The principal identifying characteristic of sabotage is that the attack is usually not intended to harm large numbers of people, but rather to cause economic harm or embarrassment to the target. Application mode: One who engages in sabotage is a saboteur. A saboteur could be one individual working alone or an organized crime group. They typically try to conceal their identities because of the consequences of their actions. Many single-issue terrorists, including ecological extremists and anti-abortion radicals, have used sabotage widely. Disgruntled employees and activists may also use sabotage. Many times, a saboteur is an insider. Sabotage can be conducted as a response to an environmental action, in which groups turn to the destruction of property to stop actions they consider detrimental to the environment. Another modern form of sabotage is the distribution of software intended to damage specific industrial systems. Some criminals have engaged in sabotage for reasons of extortion, in which destruction of property or the threat of destruction is used to obtain money, property or services. Political sabotage is sometimes used to harass or damage the reputation of a political opponent or group. Sabotage of lifeline infrastructure, energy systems or of hazardous materials sites is also possible. Duration: While planning sabotage may take an extended period of time, actually executing the plan can happen instantaneously. An act of sabotage may take a matter of seconds to a few hours, but the effects can be longer term. For example, if a train is targeted as an act of sabotage, it may take days to months to rebuild the train infrastructure that was destroyed. Dynamic/static characteristics: A sabotage incident may be concentrated to one general area or personor could be more widespread, all depending on the tactic used. For example, a disgruntled employee at a meat packing plant could sabotage the company by adding poison to their product before distribution. Once the meat is distributed, the incident becomes a more widespread problem. 37 Mitigating conditions: Some cases of sabotage can be categorized as terrorism. The City of Palo Alto maintains a Terrorism Response Plan to prepare various City departments and agencies to perform safely and effectively during a terrorist incident. The City’s EOP also provides insight on how to deal with certain types of emergency incidents, such as hazardous materials spills, which could be the result of a case of sabotage. Many employers undergo training on how to identify and mitigate sabotage in the workplace. In addition, as discussed in further detail in the “mitigating conditions” section of the Hostage/Assassin profile above, the City’s Police Department and Office of Emergency Services are prepared to mitigate acts of terrorism through training, intelligence sharing forums, and partnerships with the NCRIC. Exacerbating conditions: Sabotage is difficult to detect and to trace to its origin. Sabotage may cause lifeline infrastructure, for example water lines, to be disabled, and thus have secondary impacts, such as causing or worsening flood/drought events, fire, hazardous material spills, and other effects that could limit a city’s capacity to function as normal. Social media, such as Twitter and Facebook, have become very popular in recent times and could be used as a readily available means to sabotage companies, fellow employees or employers, and/or officials. 5.11 Workplace Violence Profile Workplace violence is violence or the threat of violence against workers. It includes any act or threat of physical violence, harassment, intimidation or other threatening disruptive behavior that occurs at the worksite. It can occur at or outside the workplace and can range from threats and verbal abuse to physical assaults and homicide. It can affect and involve employees, clients, customers, and visitors. Workplace violence includes locations such as churches, malls, etc. and may be the result of a person acting alone.20 Application mode: Workplace violence can range from threats and verbal abuse to physical assaults and homicide. These incidents can be caused by fellow employees, by employers or by external clients. Duration: Acts of workplace violence could be a onetime incident or could occur repetitively over time, lasting weeks to years. Dynamic/static characteristics: Workplace violence can occur at or outside the workplace. Mitigating conditions: Many companies have established workplace violence prevention programs and offer trainings on workplace violence including how to identify it and mitigate it. Providing a secure workplace that has video surveillance, extra lighting, and alarm systems may minimize access to outsiders. Exacerbating conditions: Some workers are at increased risk to workplace violence. Among them are workers who exchange money with the public, deliver passengers, goods or services; or work alone or in small groups, during late night or early morning hours, in high-crime areas or in community settings and homes where they have extensive contact with the public. As with 20 US Department of Labor, Occupational Safety and Health Act, www.OSHA.gov 38 sabotage, social media such as Twitter and Facebook may be a means of exacerbating workplace bullying and violence. 6 Conclusion The City of Palo Alto and its local partners should be commended for the tremendous capabilities currently available to prevent, protect against, mitigate, respond to, and recover from hazards and threats. One invaluable strength of the City’s emergency management program is the ongoing coordination with local partners. Emergency planning, training, and exercises are conducted in partnership with Stanford University, Stanford Hospital, neighboring jurisdictions, community members, and other pertinent organizations such as the American Red Cross. Communications technology within the City is fairly robust. Mass notification systems are in place. Responders and emergency managers will use the highest level of communication technology available during/immediately following an incident. Communications and notification systems are both for public safety agencies and the general public. There are a wide range of communications options. Stanford University employs an Outdoor Warning System (PA and sirens) for emergency alerts/notifications, but such a system does not exist in Palo Alto. Stanford University and the City of Palo Alto have interoperable dispatch systems. A Mobile Emergency Operations Center (MEOC) is available to enable communication coordination should the primary EOC be compromised. Social media will be an asset for receiving information from the public regarding attacks and impacts. KZSU, the Stanford radio station, is an available resource that can be taken over from Palo Alto City Hall to provide supplemental information, beyond and more-local than what might be available on other broadcast stations via the Emergency Alert System (EAS). Certain businesses have two-way radio communications within their neighborhood and to the City EOC. WebEOC enables efficient dissemination of incident management information across local government agencies throughout the Operational Area. Finally, the growth of social media tools is a resource to Palo Alto and Stanford. Opportunities for residents and members of the public to contribute to the City’s resiliency are bountiful. The Emergency Services Volunteer program provides supplemental resources to the professional first responders and facilitates means for neighbors to help neighbors (including businesses and other entities). This organization includes several City-sponsored emergency preparedness volunteer programs: • Neighborhood and Block Preparedness Coordinator program (BPC/NPC) • Palo Alto CERT Program • Palo Alto Auxiliary Communications Services: ARES/RACES • Palo Alto Medical Reserve Corps In addition to these formal opportunities for community members to receive training and assist through specific roles, "see something, say something" campaigns are helpful in maintaining vigilance throughout the City. Public education occurs via the Office of Emergency Services 39 presence on the web (www.cityofpaloalto.org/publicsafety), providing emergency preparedness presentations to the “whole community”, and through the use of semi-annual utility bill inserts. Policies and organizational processes are in place for the City government to achieve long term resiliency. Examples include the zoning ordinance and building code enforcing safe development. Critical Infrastructure and Key Resources (CIKR) sites are tagged in the new Computer Aided Dispatch (CAD) system for Palo Alto, Stanford University Campus, Los Altos, and Mountain View. Current planning efforts include an update to the Comprehensive Plan, a recent Hazard Mitigation Plan, and this THIRA report. The established THIRA Executive Committee may prove to be helpful in ongoing planning efforts beyond regular updates of this report. 6.1 Recommendations for Action Throughout the THIRA process, the Stakeholder Group and Executive Committee identified many actions to improve capabilities for prevention, protection, mitigation, response, and recovery. These recommendations are captured in Table 8-1. The list below has been modified to summarize clear actionable items the City may prioritize and incorporate into ongoing planning and budgeting processes. Planning • Update the City of Palo Alto Emergency Operations Plan and incorporate the identified hazards as evaluated in this THIRA. • Develop a detailed inventory of Critical Infrastructure and Key Resources (CIKR) among Palo Alto and Stanford University that will foster improved planning for critical infrastructure protection. Implement a plan to document risks to specified CIKR and develop a strategy to mitigate these risks. This plan could include a template for CIKR managers to conduct and document risk assessments for submission to the City of Palo Alto. • Explore sustainable solutions for energy assurance, including alternate energy for critical facilities. • Promote Utilities Infrastructure improvements that mitigate/improve resiliency (power, water, wastewater, gas). • Continue to collaborate with regional planning efforts to mitigate impacts of sea level rise/ climate change. • Implement an Infrastructure Management System – identified by IBRC. • Conduct an updated assessment on the vulnerabilities of public safety communication technologies and capabilities. o Develop alternate communications capabilities to reduce reliance on commercial carriers. 40 o Incorporate a city-wide public safety communications infrastructure assessment and survey (including Stanford University and Stanford Hospital) to provide a baseline capability to connect key facilities and nodes. • Develop a Continuity of Operations/Continuity of Government Plan. • Develop an emergency information technology plan, including business continuity and disaster recovery (BCDR). • Develop a supporting plan in conjunction with the Operational Area plan for mortuary affairs, mass casualty, mass sheltering, points of distribution and points of dispensing (mass prophylaxis) and other such regional activities. • Encourage owners of CIKR to develop all hazard response plans and coordinate, where applicable, support requirements with appropriate service providers. • Develop a City of Palo Alto recovery plan including: o Pre-identified locations for FEMA trailers and field hospital/medical treatment areas. o Plans for restoring basic health and social services functions following a catastrophic event pre-identified alternative housing solutions for use following a catastrophic event. o An evaluation of options for expediting building permits following a catastrophic event. o Resources available from the City of Palo Alto airport. • Convene THIRA executive committee annually to review and update the THIRA. Organization • Maintain an OES staff that is trained to develop, manage, and coordinate the implementation of the Palo Alto family of emergency plans (EOP, COOP, HMP, THIRA, etc.). • Use the Threat and Hazard Identification and Risk Assessment (THIRA) report to help guide decisions related to prevention, protection, mitigation, response and recovery related to threats that could affect the City. • Implement a Joint Information System with North County stakeholders that will improve public messaging during times of crises. Maintain trained staff to serve as local alerting authorities consistent with the Integrated Public Alert and Warning system (IPAWS). 41 • Maintain Palo Alto Emergency Services Volunteer, Stanford University volunteer programs, corporate Emergency Response Teams, and similar programs throughout the community. • Maintain participation in regional efforts to address remaining flood concerns, e.g., SFC JPA, SCVWD, South San Francisco Bay Shoreline Study, and Salt Pond Restoration Project. • Implement a Multi-Agency Coordination (MAC) structure for storms/floods, public works mutual aid, etc. Evaluate and improve coordination protocols within the Operational Area, and with appropriate state and federal agencies. • Bolster participation in the Northern California Regional Intelligence Center (NCRIC), the Terrorism Liaison Officer (TLO) program, the Urban Area Security Initiative (UASI), and other means to share information among agencies, businesses, and partner organizations. • Establish an emergency resource directory and put in place advanced contracts for key commodities or services identified during the planning, training, exercise process . Equipment/Facilities • Construct new Palo Alto Public Safety Building. • Develop an Emergency Operations Staging Area (EOSA) to serve as a North County staging area resource and to shelter the Palo Alto Mobile Emergency Operations Center and other critical supplies. • Improve video monitoring throughout the City of Palo Alto through collaboration and coordination with privately owned video systems and city owned video systems. • Increase access controls /physical security at critical city owned and operated facilities. • Maintain at a high level of readiness emergency response vehicles and specialized equipment required to respond to the threats and hazards listed in this report. • Acquire alternative energy and energy efficient equipment that will reduce fuel requirements and ease overall logistical burdens. • Upgrade creek storm water monitoring systems to provide improved situational awareness during storm events. • Evaluate and implement a thermal sensors/camera network to cover the Wildland Urban Interface (WUI). • Coordinate with appropriate organizations to install battery backup systems on traffic signals that increase public safety following a power outage scenario. 42 • Improve connectivity to partner EOCs and 911 PSAPs such as fiber, microwave, etc. • Explore Video Teleconferencing (VTC) capabilities to link government and nongovernment partners. • Upgrade command and control software systems that improve communications, collaboration, and situational awareness. • Acquire base camp supplies and materials to sustain small response operations (30-50 responders) for events that occur in or around Palo Alto. • Continue to participate in UASI CBRNE and HAZMAT equipment evaluation and selection. • Continue to evaluate feasibility of Regional Command Center at Moffett Field. Training and Exercise • Collaborate and regularly exercise with agencies/organizations referenced in the City’s Emergency Operations Plan: Federal, State, agencies with a regional presence; Mutual Aid Jurisdictions, Schools and Universities, Private Sector businesses, Not for Profit organizations (Faith Based, Community Service); Hospitals & Health Care Facilities. o Conduct training with other government agencies such as the FBI, State Dept., Secret Service, etc. to ensure collaborative processes and work through specific scenario variables. o Conduct collaborative planning, training and exercises with Caltrain and other rail carriers operating in the area. o Train and exercise road block/traffic diversion procedures such as in the vicinity of Stanford Hospital and Stanford University. • Conduct training and exercises with private sector entities such as Stanford Industrial Park, Stanford Shopping Center, etc. • Regularly conduct ICS and EOC staff training per the Palo Alto EOC Staff Development Program prioritizing high threat hazards • Conduct employee information technology security and awareness training and exercise a cyber-security response effort with the information technology department as the operations lead. • Routinely conduct mass care and shelter training in coordination with American Red Cross and City of Palo Alto partners. 43 Community Readiness • Cultivate a culture of preparedness and community connection through efforts such as outreach to public and private schools, Citizen Corps Council, City Staff and Volunteer Disaster Service Worker training, and other “whole community” stakeholders. o Continue to engage the business sector to improve their mitigation and preparedness efforts; educate small businesses on the importance of resiliency planning. o Establish a goal for each family and business within the community to have an adequate supply of water, food, etc. o Pre-identify/establish public messaging campaigns that remind the community of appropriate actions to a variety of potential hazard events (e.g. shelter in place, evacuate, earthquake, flooding, etc.) o Continue and improve promotion of family and business readiness to mitigate service needs such as sheltering and mass care. • Evaluate the potential for establishing a coordinating group for private airplane pilots (a model exists in southern Santa Clara County) that could improve small-scale disaster logistics operations. 6.2 THIRA Maintenance The Palo Alto Office of Emergency Services (OES) will be responsible for reviewing this THIRA report quarterly to make note of progress and/or items to update. Annually, the THIRA Executive Committee will convene to discuss the progress and/or circumstances requiring changes to the stated priorities. The annual Executive Committee meeting will culminate in a summary memo prepared by OES and submitted to the City Council for consent as a matter of public record. Every two years the THIRA report will be updated and re-issued as a new version. On an ongoing basis the THIRA report shall inform updates to the City’s Emergency Operations Plan. The THIRA report is For Official Use Only and is not available in its entirety to the public. Questions regarding this report may be directed to OES at 650-617-3197. 7 Appendices Appendix A: Planning Team Table 7-1 lists the Executive Committee and broader stakeholder group members who participated in and contributed to the development of this THIRA. 44 Table 7-1 Planning Team Name Agency Executive Committee Member Aaron Aknin Acting Director, City of Palo Alto Planning, Community & Environment (now employed by Redwood City) X Andy Swanson City of Palo Alto, Airport Manager Annette Glanckopf City of Palo Alto Emergency Services Volunteer Program Arrietta Chakos Dewberry Team Bern Beecham City of Palo Alto Emergency Services Volunteer Program (and former City Councilmember) Brad Wardle City of Mountain View, Fire Chief Brandon Bond Stanford University Medical Center, Administrative Director of Office of Emergency Management X Brian Marquez Stanford Shopping Center, Security Manager Cathleen Atchison Dewberry Chris Cohendet Stanford University Department of Public Safety, Sergeant X Claudia Keith Chief Communications Officer; City Manager's Office Corinne Bartshire Dewberry David MacKenzie City of Palo Alto Chamber of Commerce, CEO Dean Batchelor City of Palo Alto Utilities, Assistant Director Dennis Burns City of Palo Alto Police Chief X Donna Grider City of Palo Alto, City Clerk Elizabeth Lam City of East Palo Alto Police Department, CSO Eric Nickel City of Palo Alto Fire Chief X Frank Grgurina City of Sunnyvale Department of Public Safety, Chief Greg Betts City of Palo Alto, Director of Community Services Hillary Gitelman City of Palo Alto Planning, Community & Environment, Director X Houman Boussina City of Palo Alto, Interim Auditor James Keene City of Palo Alto, City Manager X Jim Dunnegan Varian Oncology Systems, EH&S Manager Jim Schweikhard Palo Alto Medical Foundation, Safety Manager John StClair III City of Palo Alto Emergency Services Volunteer Program, CERT Jonathan Reichental City of Palo Alto, Chief Information Technology Officer X Karen Bouvier Palo Alto Research Center Karl Matzke American Red Cross Kathryn Shen City of Palo Alto, Director of People Strategy 45 Name Agency Executive Committee Member & Operations Kay Iida Stanford University Department of Public Safety, Lieutenant Keith Perry Stanford University EH&S X Ken Dueker City of Palo Alto, Director of Emergency Services X Lalo Perez City of Palo Alto, Director of Administrative Services/Chief Financial Officer Laura Wilson Stanford University Department of Public Safety, Chief X Linda Barcomb Merck Sharp & Dohme Corp. Linda Hibbs Lytton Gardens Lydia Kou City of Palo Alto Emergency Services Volunteer Program Lynn Brown City of Mountain View, Emergency Services Coordinator Matt Sorgenfrei City of Palo Alto Emergency Services Volunteer Program, CERT Mike Sartor City of Palo Alto, Director of Public Works X Molly Stump City of Palo Alto, City Attorney Monique leConge City of Palo Alto, Library Director Nathan Rainey City of Palo Alto Office of Emergency Services Paul Lufkin City of Palo Alto Emergency Services Volunteer Program, ARES/RACES Peter Prinejad City of Palo Alto, Development Center Director Ryan Zollicoffer Menlo Park Fire Protection District, Emergency Manager Samantha Brichacek Stanford Industrial Park (SIP), EH&S Manager Scott Vermeer City of Mountain View, Chief of Police Simon Williams City of Palo Alto Office of Emergency Services Steve Drewniany City of Sunnyvale Department of Public Safety, Deputy Chief Tom Fehrenbach City of Palo Alto Economic Development Manager X Tuck Younis City of Los Altos, Police Chief Val Fong City of Palo Alto, Director of Utilities X Victor Talavera Palo Alto Research Center Vinny Mata City of Sunnyvale, Emergency Services Coordinator Walter Rossman City of Palo Alto, Director of Office of Management and Budget Zachary Perron City of Palo Alto Police Department, Lieutenant 46 47 City of Palo Alto (ID # 5293) Policy and Services Committee Staff Report Report Type: Agenda Items Meeting Date: 12/9/2014 Summary Title: Hazardous Buildings and Seismic Safety Study Session Title: Discussion of Updating the Seismic Safety Chapter of the Municipal Code for Hazardous Buildings From: City Manager Lead Department: Planning and Community Environment Recommendation Staff recommends that the Committee review the information included here regarding the CΊχϴ͛ν ͋ϳΊνχΊΣͽ ΊΣϭ͋ΣχΪιϴ Ϊ͕ νχιϢ̽χϢι̯ΜΜϴ ͇͕͋Ί̽Ί͋Σχ ̼ϢΊΜ͇ΊΣͽν ̯Σ͇ χ·͋ CΊχϴ͛ν ͋ϳΊνχΊΣͽ Ϊι͇ΊΣ̯Σ̽͋ addressing these buildings, and recommend that the full Council authorize an immediate Request for Proposals to prepare an updated inventory and to customize an approach for ν͋Ίν΢Ί̯̽ΜΜϴ Ϣζͽι̯͇ΊΣͽ χ·͋ CΊχϴ͛s most vulnerable buildings. Executive Summary In 1986, the City adopted an ordinance categorizing seismically vulnerable buildings. (See Palo Alto Municipal Code Section 16.42.) The ordinance required property owners to prepare an engineering analysis of their buildings and provided incentives for owners to address identified deficiencies. Twenty-three (23) of the buildings on the inventory remain vulnerable. In addition, there are building typologies that were not included in the original inventory which ̯ι͋ ΣΪϮ ι͋̽ΪͽΣΊϹ͇͋ ̯ν ϭϢΜΣ͋ι̯̼Μ͋΂ ι͋θϢΊιΊΣͽ ̯͇͇ΊχΊΪΣ̯Μ ̯Σ̯ΜϴνΊν ̯Σ͇ ̯Σ Ϣζ͇̯χ͋ χΪ χ·͋ CΊχϴ͛ν inventory and ordinance. This report sets the framework for the Policy and Services Committee (Committee) discussion related tΪ ν͋Ίν΢Ί̯̽ΜΜϴ ϭϢΜΣ͋ι̯̼Μ͋ ̼ϢΊΜ͇ΊΣͽν΅ ͜χ ͋ϳζΜΪι͋ν χ·͋ CΊχϴ͛ν ͋ϳΊνχΊΣͽ Ϊι͇ΊΣ̯Σ̽͋΂ ι͋ϭΊ͋Ϯν ̼͋νχ practices from other communities and concludes with recommended discussion items/next steps. Background On September 15, 2014, the City Council directed the Policy and Services Committee to address the following:  identification and prioritization of buildings that pose a potential hazard in an earthquake, including soft-story buildings and other types of construction City of Palo Alto Page 1  review "best practices" from other cities regarding prioritization of various seismically vulnerable buildings, including retrofit incentives and requirements  review current or pending State legislation related to soft-story buildings and other structurally deficient buildings Two events precipitated this recent direction. First, the 6.0 magnitude earthquake on August 24΂ 2014 ΊΣ Ͳ̯ζ̯ Π̯ΜΜ͋ϴ ̯Σ͇΂ ν͋̽ΪΣ͇΂ χ·͋ CΊχϴ CΪϢΣ̽ΊΜ͛ν ι͋ϭΊ͋Ϯ Ϊ͕ χ·͋ ͸͕͕Ί̽͋ Ϊ͕ E΢͋rgency ΋͋ιϭΊ̽͋͛ν Α·ι̯͋χν ̯Σ͇ H̯Ϲ̯ι͇ ͇͋͜ΣχΊ͕Ί̯̽χΊΪΣ ̯Σ͇ ·ΊνΙ !νν͋νν΢͋Σχ ι͋ζΪιχ ΪΣ ΋͋ζχ͋΢̼͋ι 15, 2014, which identified over 150 seismically vulnerable buildings: http://www.cityofpaloalto.org/civicax/filebank/documents/43866. Each of these study topics are addressed below, followed by a recommended approach for the Committee to consider. Building Identification and Prioritization In 1986, the City Council adopted the Seismic Hazards and Identification Program codified at Section 16.42 of the Municipal Code (Attachment A). This ordinance established a mandatory evaluation and reporting program and created incentives for property owners to voluntarily upgrade their structurally deficient buildings. Three categories of buildings were identified, including:  Category I Buildings: Buildings constructed of unreinforced masonry (except for those smaller than 1,900 square feet with six (6) or fewer occupants).  Category II Buildings: Buildings constructed prior to January 1, 1935 containing one hundred (100) or more occupants.  Category III Buildings: Buildings constructed prior to August 1, 1976 containing three hundred (300) or more occupants. An unreinforced masonry building (or UMB, URM building) is a type of building where load bearing walls, non-load bearing walls or other structures, such as chimneys are made of brick, cinderblock, tiles, adobe or other masonry material, that is not braced by reinforcing beams. Α·͋ ̯̽χ͋ͽΪιΊ͋ν ̯̼Ϊϭ͋ Ϯ͋ι͋ ͇͋ϭ͋ΜΪζ͇͋ ̼ϴ ̯ ̽ΊχΊϹ͋Σ͛ν ̽Ϊ΢΢Ίχχ͋͋΂ ι͋ϭΊ͋Ϯ͇͋ ̼ϴ staff and the Policy and Services Committee, and adopted by the City Council. These categories were created to record known URM buildings and potentially and other structurally deficient buildings with high occupancy volumes. This program identified 89 buildings and was successful in two significant ways. One hundred percent (100%) of the property owners complied with the ordinance and submitted engineering reports detailing structural deficiencies and recommendations to strengthen structures to alleviate the threat of collapse.1 Further, approximately seventy-five percent (75%), or sixty-six buildings were strengthened, demolished, or proposed to be demolished. See Attachment B for current status of all inventoried properties. 1 Based on a December 13, 2004 City Council Report from PCE City of Palo Alto Page 2 Part of this success may be attributed to incentives that allowed upfront engineering report costs be applied toward permit fees and the ability for property owners in the Downtown Commercial (CD) district to add up to 2,500 square feet of new floor area, or twenty-five percent (25%) of the existing building area, whichever is greater, to the site without having to provide additional parking.2 This floor area bonus could be used onsite or transferred to another owner or property in the CD district. Approximately twenty-one (21) property owners took advantage of this incentive. Despite its successes, however, twenty-three (23) buildings identified from that original inventory remain vulnerable. Further, there are other building typologies that were not surveyed prior to adoption of the 1986 ordinance. For example, problems with soft-story construction were documented following the 1994 Northridge earthquake, which resulted in changes to construction industry standards a few years later. A soft story building is a multi-story building in which one or more floors have windows, wide doors, large unobstructed commercial spaces, or other openings in places where a shear wall would normally be required for stability as a matter of earthquake engineering design. A typical soft story building is an apartment building Ϊ͕ χϮΪ Ϊι ΢Ϊι͋ νχΪιϴ͛ν ΜΪ̯̽χ͇͋ Ϊϭ͋ι ̯ ͽιΪϢΣ͇ level with large openings, such as a parking garage or series of retail businesses with large windows. In 2003, the Collaborative for Disaster Mitigation at San Jose State University completed an ͜͞Σϭ͋ΣχΪιϴ Ϊ͕ ΋Ϊ͕χ-First Story Multi-Family Dwellings in Santa Clara County.͟ According to the report, the City of Palo Alto had 130 soft-story multi-family buildings including 1,263 residential units housing 3,158 occupants. (Attachment C) There are other construction types that were not surveyed in 1986, including non-ductile concrete buildings, steel moment frame buildings, and concrete tilt-up buildings, in addition to soft-story construction. It is unclear how many of these buildings exist in the city. Α·͋ ̽Ίχϴ͛ν ͋ϳΊνχΊΣͽ Ϊι͇ΊΣ̯Σ̽͋ ι͋θϢΊι͋ν ̯ΣΣϢ̯Μ ι͋ζΪιχΊΣͽ χΪ χ·͋ CΊχϴ CΪϢΣ̽ΊΜ ΪΣ χ·͋ νχ̯χϢν Ϊ͕ χ·͋ program. This reporting appears to have ended in 2004 for unknown reasons. More recently, the City Council adopted an interim ordinance modifying the seismic incentive such that parking must now be provided if an owner seeks to add 2,500 square feet or 25% of the total building area in the CD District. It is unclear how this policy change will affect continued participation in the program. Best Practices and Incentives The Association of Bay Area Governments has a Resilience Program and developed a website that has an inventory of ordinances from certain jurisdictions within its boundaries. It is 2 This incentive was also made available to properties in Historic Categories 1 and 2 not seeking seismic upgrades City of Palo Alto Page 3 intended to serve as a toolkit for best practices. The website address is http://resilience.abag.ca.gov/recovery/ordinances/. In addition, staff contacted the Planning Advisory Service, which is a fee-based service and research arm of th͋ !΢͋ιΊ̯̽Σ ΄Μ̯ΣΣΊΣͽ !ννΪ̽Ί̯χΊΪΣ΅ Α·Ίν ν͋ιϭΊ̽͋ ·͋Μζν ̯Ϣͽ΢͋Σχ νχ̯͕͕͛ν ι͋ν̯͋ι̽· capabilities. Based on a review of several city ordinances, it appears that there is some degree of variation how local jurisdictions seek to mitigate structurally deficient buildings. Most go beyond identifying and reporting to mandating retrofitting within specified periods of time. In some instances, the more seismically vulnerable buildings are prioritized over other buildings in terms of timelines for compliance to current retrofitting standards. This is the typical process in most communities: 1. City develops an inventory and notifies owner a. Inventory typically includes evaluation of URM; soft-story construction; concrete tilt-up structures b. Inventory is prepared by qualified city staff or consultants c. Property owners have some right of appeal to challenge their placement on the inventory 2. Owner submits a report to the city within a specified time period detailing: a. ΋χιϢ̽χϢι͋͛ν ̽Ϊ΢ζΜΊ̯Σ̽͋ ϮΊχ· ΢ΊΣΊ΢Ϣ΢ ̯͋ιχ·θϢ̯Ι͋ ν̯͕͋χϴ νχ̯Σ͇̯ι͇ν b. Structural deficiencies and proposed retrofit plan c. Demolition plan 3. Owners are given a timeline for compliance (often one or more years) Many communities exempt detached residential structures and apartment buildings with fewer than 5 units, as well as warehouses. Penalties for non-compliance range from misdemeanor charges subject to fines or imprisonment to orders that the building be vacated or demolished. Some cities offer incentives. Berkeley for instance refunds one-third (1/3) of its 1.5% real estate transfer tax for qualifying projects. Other cities reduce or eliminate building permit and inspection fees associated with retrofitting. San Mateo at one point offered grants and loans for certain projects. Incentives, when offered, typically include:  Financial (waiving permit fees, grants or loans, reductions in property or real estate taxes)  Process (streamlined permitting and inspection services) City of Palo Alto Page 4 improving the performance of buildings during seismic events. Accordingly, there is a need to Ϣζ͇̯χ͋ χ·͋ CΊχϴ͛ν ͋ϳΊνχΊΣͽ Ϊι͇ΊΣ̯Σ̽͋ χΪ ͋ϳζ̯Σ͇ χ·͋ ΜΊνχ Ϊ͕ ζΪχ͋ΣχΊ̯ΜΜϴ ϭϢΜΣ͋ι̯̼Μ͋ ̼ϢΊΜ͇ΊΣͽν ̯Σ͇ creating an additional mechanisms to encourage retrofitting buildings not previously identified. At a minimum, it is recommended that the City update the inventory of structurally deficient buildings in the multi-family, commercial and industrial areas of the city, categorizing building typologies including: a. URM b. Soft-Story c. Tilt-Up Construction d. Non-ductile Concrete e. Steel Moment This task would require use of a consultant to: f. Prepare the inventory update g. Review existing engineering reports on file with the city as a result of the 1986 ordinance h. Assist the city in prioritizing buildings to be retrofitted i. Provide guidance for a new or revised ordinance Depending on the breadth of the program, consultant costs could extend up to $100,000 based on feedback received from other communities doing similar work. In addition, the City may want to explore whether the program should be updated to require mandatory retrofitting following a voluntary compliance period. The use of incentives could continue play an important role and can help defray some costs associated with potentially financially burdensome compliance requirements. Staff would like the Committee͛ν ΊΣζϢχ ΪΣ χ·͋ν͋ ΊννϢ͋ν ζιΊΪι χΪ ̽ΪΣχι̯̽χΊΣͽ ͕Ϊι ̯Σ Ϣζ͇̯χ͇͋ inventory and preparing a revised ordinance. Timeline Preparation of an updated inventory will take approximately 4-6 months once a contractor is on board. Depending on the number and type (including the current occupancy) of properties identified, it could take considerably more time to conduct outreach to proprety owners and the community, as well as prepare a draft ordinance for Committee review. Any amendments that require changes to Title 18 – Zoning, would require review by the Planning and Transportation Commission before the matter is brought to the Council. The ordinance would set forth other timelines related to notice to owners, requirements for owner prepared engineering reports and expected completion dates to retrofit buildings determined to be structurall deficient. Resource Impact City of Palo Alto Page 7 It is anticipated that staff would prepare the ordinance amendments, however, preparation of an updated inventory will require consultant assistance preliminarily estimated to be $100,000. At the time a contract is awarded, staff would request that City Council approve a Budget Amendment Ordinance (BAO) to increase the ͇͋ζ̯ιχ΢͋Σχ͛ν FΊν̯̽Μ Χ̯͋ι 2015 !͇Ϊζχ͇͋ ͸ζ͋ι̯χΊΣͽ Budget appropriation to include this expense. Environmental Review The recommended action in this report is not a project and, therefore, not subject to environmental review. However, adoption of an ordinance to amend the muncipal code is subject to enviromental review. It is anticipated that a future amendment would be exempt from the provisions of the California Environmental Quality Act unless the ordinance would have the potentail to result in significant displacement of existing uses/residents. Attachments:  Attachment A: Palo Alto Municipal Code Section 16.42 (PDF)  Attachment B: Seismic Inventory Status Update (DOC)  Attachment C: Preliminary Soft-Story Construction List (DOCX) City of Palo Alto Page 8 Chapter 16.42 SEISMIC HAZARDS IDENTIFICATION PROGRAM Page 1 of 7 Attachment A Print Palo Alto Municipal Code Chapter 16.42 SEISMIC HAZARDS IDENTIFICATION PROGRAM Sections: 16.42.010 Purpose. 16.42.020 Definitions. 16.42.030 Scope of program. 16.42.040 Building categories and implementation schedule. 16.42.050 Engineering reports. 16.42.060 Review of reports. 16.42.070 Responsibilities of the building owners. 16.42.080 Program status reports to the city council. 16.42.090 Remedies. 16.42.010 Purpose. It is found and declared that in the event of a strong or moderate local earthquake, loss of life or serious injury may result from damage to or collapse of buildings in Palo Alto. It is generally acknowledged that Palo Alto will experience earthquakes in the future due to its proximity to both the San Andreas and Hayward faults. The purpose of this chapter is to promote public safety by identifying those buildings in Palo Alto which exhibit structural deficiencies and by accurately determining the severity and extent of those deficiencies in relation to their potential for causing loss of life or injury. The city council finds it desirable to identify the hazards that these deficiencies may pose to occupants of buildings and pedestrians in the event of an earthquake. Such a seismic hazards identification program is consistent with California Health and Safety Code Sections 19160 - 19169 and is necessary to implement the Palo Alto Comprehensive Plan's Environmental Resources Policy 14, Program 47. (Ord. 3666 § 1 (part), 1986) 16.42.020 Definitions. (a) "Bearing wall" means any wall supporting a floor or roof where the total superimposed load exceeds one hundred pounds per linear foot, or any unreinforced masonry wall supporting its own weight when over six feet in height. You created this PDF from an application that is not licensed to print to novaPDF printer (http://www.novapdf.com) 24/2014 Chapter 16.42 SEISMIC HAZARDS IDENTIFICATION PROGRAM Page 2 of 7 (b) "Building," for the purpose of determining occupant load, means any contiguous or interconnected structure; for purposes of engineering evaluation, means the entire structure or a portion thereof which will respond to seismic forces as a unit. (c) "Capacity for transfer" means the maximum allowable capacity of a structural system or connection to resist in a ductile manner the lateral forces it would encounter due to earthquake forces. (d) "Civil engineer or structural engineer" means a licensed civil or structural engineer registered by the state of California pursuant to the rules and regulations of Title 16, Chapter 5 of the California Administrative Code. (e) "External hazard" means an object attached to or forming the exterior facade of a building which may fall onto pedestrians or occupants of adjacent buildings. Examples of this type of hazard include, but are not limited to, the following: (1) Nonstructural exterior wall panels, such as masonry infill or decorative precast concrete; (2) Parapets; (3) Marquees, awnings or other roof-like projections from a building; (4) Masonry or stone wall veneer and wall ornamentation, including cornices or other decorative appendages; (5) Masonry chimneys; (6) Tile roofing; (7) Wall signs and exterior lighting fixtures hung from a building exterior; (8) Fire escapes or balconies. (f) "Geometry" means a building's shape or configuration, including setbacks of wall/column lines, reentrant corners, discontinuities in vertical and horizontal lateral force diaphragms, open storefront and building stiffness variations due to the distribution of resisting elements or the use of materials of differing properties within the same structural element, or other irregularities in plan or elevation. (g) "Occupants" means the total occupant load of a building determinedm pursuant to the Uniform Building Code, or the actual maximum number of occupants in that building if that number is less than seventy-five percent of the number determined pursuant to the code. The number of actual occupants may be documented by counting actual seating capacity if permanent seating is provided in the occupancy, or by employee and client counts which can be substantiated as a practical maximum use of the space in the building. The chief building official will establish the procedure for documenting occupant loads. (h) "Solution" means any justifiable method that will provide for the transfer of lateral forces through a system or connection to a degree which will substantially eliminate a potential collapse failure. A general description of the methods and materials to be used shall be included in sufficient detail to allow for a cost estimate of the solution to be made (i.e., adding shear walls, overlaying horizontal diaphragms, strengthening critical connections, etc.). You created this PDF from an application that is not licensed to print to novaPDF printer (http://www.novapdf.com) 24/2014 Chapter 16.42 SEISMIC HAZARDS IDENTIFICATION PROGRAM Page 3 of 7 (i) "Unreinforced masonry" ("URM") building means any building containing walls constructed wholly or partially with any of the following materials: (1) Unreinforced brick masonry; (2) Unreinforced concrete masonry; (3) Hollow clay tile; (4) Adobe or unburned clay masonry. (Ord. 4642 § 28, 2000: Ord. 3666 § 1 (part), 1986) 16.42.030 Scope of program. (a) Applicability. The following buildings in Palo Alto shall be required to have an engineering report submitted to the city's building inspection division, pursuant to Section 16.42.050, to determine: (i) the existence, nature and extent of structural deficiencies which could result in collapse or partial collapse of the building; and (ii) the existence, nature and extent of deficiencies in the anchoring of external hazards: (1) Buildings constructed of unreinforced masonry (URM), except those of less than one thousand nine hundred square feet containing six or fewer occupants; (2) Buildings constructed prior to January 1, 1935 containing one hundred or more occupants; (3) Buildings constructed prior to August 1, 1976 containing three hundred or more occupants. (b) Exemptions. The following buildings need not comply with this chapter: (1) Buildings which have been structurally upgraded in substantial accordance with either the Los Angeles Division 88 Standard for URM buildings or the 1973, or later, edition of the Uniform Building Code; (2) Buildings whose uses are subject to amortization under this code; provided that, upon the termination of the nonconforming use, such a building shall be required to be rehabilitated to the then current lateral force requirements in the Uniform Building Code prior to occupancy by a conforming use. (Ord. 3666 § 1 (part), 1986) 16.42.040 Building categories and implementation schedule. (a) Building Categories. The categories of buildings within the scope of this chapter are set forth in Table A, below. (b) Owner Notification. The owners of buildings in categories I through III, except those designated as historic buildings, shall be notified within six months of enactment of the ordinance codified in this chapter by the building inspection division of the city of Palo Alto that their buildings are required to have an engineering report submitted to the city. Owners of You created this PDF from an application that is not licensed to print to novaPDF printer (http://www.novapdf.com) 24/2014 Chapter 16.42 SEISMIC HAZARDS IDENTIFICATION PROGRAM Page 4 of 7 designated historic buildings, as defined in Chapter 16.49, shall be notified within eighteen months of enactment of the ordinance codified in this chapter. (c) Implementation Schedule. The owners of buildings in categories I through III must submit engineering reports within the time frame set out in Table A, below, from the date of mailed notice by the city. Table A Engineering Report Submitted Category Description Within Date of Mailed Notice (in Years) I All URM buildings. 1-1/2 II All pre-1935 buildings other than URM with 100 occupants or more. 2 All buildings with 300 occupants or III more constructed between January 1, 2-1/2 1935 and August 1976. (Ord. 3666 § 1 (part), 1986) 16.42.050 Engineering reports. (a) Preparation of Reports. Building owners shall employ a civil or structural engineer to prepare the investigation and engineering report outlined below. (b) Purpose. To investigate, in a thorough and unambiguous fashion, a building's structural systems that resist the forces imposed by earthquakes and to determine if any individual portion or combination of these systems is inadequate to prevent a structural failure (collapse or partial collapse). (c) General. Each building shall be treated as an individual case without prejudice or comparison to similar type or age buildings which may have greater or lesser earthquake resistance. Generalities or stereotypes are to be avoided in the evaluation process by focusing on the specifics of the structural system of the building in question and the local geology of the land on which the building is constructed. (d) Level of Investigation. Some buildings will require extensive testing and field investigation to uncover potential structural deficiencies, while others will allow the same level of overall evaluation by a less complicated process due to simplicity of design or the availability of original or subsequent alteration design and construction documents. It is the responsibility of the engineer performing the evaluation to choose the appropriate level of investigation which will produce a report that is complete and can serve as a sound basis for a conclusion on the collapse hazard the building may present. (e) Format for the Report. The following is a basic outline of the format each engineering report should follow. This outline is not to be construed to be a constraint on the professional preparing the report, but rather to provide a skeleton framework within which individual You created this PDF from an application that is not licensed to print to novaPDF printer (http://www.novapdf.com) 24/2014 Chapter 16.42 SEISMIC HAZARDS IDENTIFICATION PROGRAM Page 5 of 7 approaches to assembling the information required by the ordinance may be accomplished. It also will serve as a means for the city to evaluate the completeness of each report. (1) General Information. A description of the building including: (i) the street address; (ii) the type of occupancy use within the building, with separate uses that generate different occupant loads indicated on a plan showing the square footage of each different use; (iii) plans and elevations showing the location, type and extent of lateral force resisting elements in the building (both horizontal and vertical elements); (iv) a description of the construction materials used in the structural elements and information regarding their present condition; (v) the date of original construction, if known and the date, if known, of any subsequent additions or substantial structural alterations of the building; and (vi) the name and address of the original designer and contractor, if known, and the name and address of the designer and contractor, if known, for any subsequent additions or substantial structural alterations. (2) Investigation and Evaluation of Structural Systems. All items to be investigated and the methods of investigation for each type of building under consideration are contained in Appendices A and B, attached to the ordinance codified in this chapter, available from the city's building inspection division. (3) Test Reports. All field and laboratory test results shall be included in the report. Evaluation of the significance of these test results shall be made with regard to each structural system or typical connection being evaluated. This evaluation may be limited to a statement of the adequacy or inadequacy of the system or connection based on the lateral load demand it would be required to resist by calculation. If tests reveal inadequacy, a conceptual solution must be included in the report. (4) Conclusions. Based on the demand/capacity ratio and the specific evaluation items contained in Appendices A or B attached to the ordinance codified in this chapter, a statement shall be provided explaining the overall significance of the deficiencies found to exist in the building's lateral force-resisting system regarding potential collapse or partial collapse failure. (5) Recommendations. An appropriate solution, which could be used to strengthen the structure to alleviate any collapse or partial collapse threat, shall be specified. (f) Exceptions and Alternatives. Exceptions to the specific items required to be included in an engineering report may be granted by the chief building official upon review of a written request from the engineer preparing the report. Such a request shall provide evidence that adequate information concerning the required item(s) can be determined by alternate means or that a conclusion can be made about the item without following the solution called for in the appropriate appendix. The purpose of granting such exceptions shall be to reduce the costs or disruption that would result from taking required actions, when it can be shown that they are unnecessary to provide information available by other equivalent means. In no case will an exception be granted which would result in an item not being completely evaluated. The decision of the chief building official in granting exceptions is final. (Ord. 3666 § 1 (part), 1986) 16.42.060 Review of reports. You created this PDF from an application that is not licensed to print to novaPDF printer (http://www.novapdf.com) 24/2014 Chapter 16.42 SEISMIC HAZARDS IDENTIFICATION PROGRAM Page 6 of 7 (a) The city shall utilize the services of civil or structural engineers to assist the building inspection division in determining if the submitted engineering reports conform to the requirements of this chapter. (b) The cost of this review shall be recovered by a fee assessed from the building owner based on the time required for the review. This fee amount shall be deducted from the plan checking fee collected for any future construction work that deals directly with correcting any of the structural inadequacies specified in the engineering report. (c) Copies of the engineering reports shall be available to interested individuals for a standard copying fee or may be reviewed at the building inspection division offices. (Ord. 3666 § 1 (part), 1986) 16.42.070 Responsibilities of the building owners. (a) Notification of Building Tenants. A building owner shall notify all tenants, in writing, that a structural investigation has been performed and that the report is available at the building inspection division offices. This notice must be sent within thirty days of the date the report is submitted to the city. (b) Letter of Intent. A building owner shall submit a letter to the building inspection division within one year of the date the engineering report was submitted, indicating the owner's intentions for dealing with the potential collapse hazards found to exist in the building. (Ord. 3666 § 1 (part), 1986) 16.42.080 Program status reports to the city council. The chief building official shall submit a semiannual report to the city council on the status of the seismic hazards identification program. The reports shall include information regarding the number of buildings analyzed, the severity of the structural inadequacies discovered and any actions taken by individual building owners to correct these inadequacies. (Ord. 3666 § 1 (part), 1986) 16.42.090 Remedies. It shall be unlawful for the owner of a building identified as being included in the scope of this chapter to fail to submit a report on either building collapse hazards or external hazards within the time period specified in Section 16.42.040(c), Table A, or to fail to submit a letter of intent within the time period specified in Section 16.42.070(b). The following remedies are available to the city: (a) The city may seek injunctive relief on behalf of the public to enjoin a building owner's violation of this chapter. (b) Any building owner violating this chapter shall be guilty of a misdemeanor and upon conviction thereof shall be punishable as provided in Section 1.08.010 of this code. Such You created this PDF from an application that is not licensed to print to novaPDF printer (http://www.novapdf.com) 24/2014 Chapter 16.42 SEISMIC HAZARDS IDENTIFICATION PROGRAM Page 7 of 7 building owner is guilty of a separate offense for each and every day during any portion of which such violation of this chapter is committed, continued or permitted by such building owner. (c) These remedies are not exclusive. (Ord. 3881 § 9, 1989: Ord. 3666 § 1 (part), 1986) You created this PDF from an application that is not licensed to print to novaPDF printer (http://www.novapdf.com) 24/2014 Attachment Current Status of Existing Seismic Hazards Buildings per Category (September 2014) Category I Buildings: Category II Buildings: Category III Buildings: Buildings constructed of Buildings constructed prior to Buildings constructed prior to unreinforced masonry (except January 1, 1935 containing one August 1, 1976 containing for those smaller than 1,900 hundred (100) or more three hundred (300) or more square feet with six (6) or occupants. occupants. fewer occupants). Strengthened/Retrofitted: 21 Strengthened: 13 Strengthened: 5 Demolished/New Building: 14 Demolished/New Building: 2 Demolished/New Building: 5 URM Wall Removed: 1 Proposed to be demolished: 4 Exempt: 1 No change: 4 No Change: 9 No Change: 10 Total Number: 47 Total Number: 19 Total Number: 23 1 of 4 Category I Seismic (Unreinforced Masonry including In-fill) Updated September 2014 Address Occupant Status 525 Alma Patagonia Strengthened UCBC Historic 529 Alma Pampas Strengthened UCBC Historic 539 Alma Premier Properties URM Wall Removed Historic 657 Alma Phil’s Coffee Demolished / New Building 705 Alma Ellison’s Garage Demolished / New Building #995138-1997 UBC 841 Alma Palo Alto Family Housing Demolished / New Building 901 Alma No Change 425-31 Cali Fine arts No Change 437-41 Emerson Classic Gelato Strengthened UCBC 530-32 Emerson Jungle Printing Strengthened UCBC 544 Emerson Gravity Retrofitted 08rev-00239 611-19 Emerson Vivre/Fitness Strengthened #2000973 – w/ 25 % increase 626-40 Emerson Gordon Biersh Strengthened Permit # 871446 (Concrete beams w/ infill) 744 Emerson Whole Foods Strengthened Permit 871186 847 Emerson No Change – Exempt from Ordinance 949-51 Emerson SOS Grocery No Change 2 of 4 150-56 Hamilton House of Foam No Change 411 High Criteo Corp. Strengthened Permit 981074 UBC 542 High Palantir No Change 160 Forest Costanoa Strengthened Permit # 902932 151 Homer Pete’s Coffee Demolished / New Building 230 Homer Strengthened Permit # 952276 232 Homer Strengthened Permit # 952276 265 Homer No Change 401 Florence Russo & Hale Strengthened Permit # 91104 w/ 25% increase 431-39 Florence First Am. Title Demolished / New Building 522 Ramona Coupa Cafe Strengthened UCBC 634-636 Ramona No Change 820 Ramona Maple Investments Demolished / New Building 140 University Palo Alto grill Strengthened UCBC 150 University Palantir Demolished / New Building 171-77 University Palo Alto Bicycle Demolished / New Building 172-74 University Frendz Studio No Change 180-82 University Cot Plus Strengthened Permit # 933333 UBC 3 of 4 201-07 University Sushi Strengthened Permit # 941359 227 University Stanford theater Addition Demolished #040514 233-35 University Mills Florist No Change 270 University Jos. A. Bank Demolished / New Building 274-78 University Keen Shoes Demolished / New Building 275-83 University Restoration Hardware Strengthened Permit # 95939 UBC 380-82 University Slamon Consulting Demolished / New Building 384 University Chico’s Strengthened UBC 403-05 University O Sushi Strengthened Permit # 950778 400 University Union Bank No Change 424 University LuLuLemon Demolished / New Building 499 University Sprint Demolished / New Building 700 Welch Stanford Barn Strengthened Permit # 871528 Category I – Seismic Summary: September 2014 Total Number 47 Strengthened or Retrofitted 21 Demolished / New Building 14 URM Wall Removed 1 Vacated 0 Exempt 1 No Change 10 4 of 4 Category II Seismic (Buildings constructed prior to 1935 with more than 100 occupants) Updated September 2014 Address Occupant Status 450 Bryant City of Palo Alto/Senior Center (Avenidas) Strengthened Permit # 95109 518-26 Bryant Three Seasons Strengthened 661 Bryant Tencent Mandatory Seismic upgrade 10-00592 Strengthened Permit # 902764 205-25 Hamilton Institute for the Future Strengthened Permit # 851796 231-47 Hamilton Cardinal Hotel No Change 255-67 Hamilton University Art Center Strengthening -seismic upgrade included in permit to be submitted with historic restoration late 2014 475 Homer Women’s Club No Change 1305 Middlefield City of Palo Alto/Stern Center Strengthened Permit # 91689 211 Quarry Hoover Pavilion Strengthened 10-03433 5 of 4 668 Ramona Pacific Art League Strengthened 12-02860 223 University Stanford Theater Strengthened Permit # 251-55 University Fidelity Investments Strengthened Permit # 91455 300-14 University Walgreen’s Demolished / New Building 340-46 University Apple Store Demolished / New Building 456 University Border’s Books Strengthened Permit # 951243 25% Inc. 480 University President Apartments No Change 25 University McArthur Park No Change 745 Waverly St. Thomas Aquinas Church Strengthened Permit # 871141 2300 Wellesley City of Palo Alto/Library Strengthened Category II – Seismic Summary: September 2014 Total Number 19 Strengthened 13 Demolished / New Building 2 No change 4 Historic 14 6 of 4 Category III Seismic (Buildings constructed prior to 1976 with more than 300 Occupants) Updated September 2014 Address Occupant Status 200 Arboretum Nordstrom’s No Change 601 California Wilson Sonsini Goodrich Demolished / New Building 975 California Merk No Change 1451 California Stanford Planned community development To be demolished spring 2015 Strengthened Under Permit # 932441 1501 California Stanford Planned community development To be demolished spring 2015 Strengthened 1601 California Stanford Planned community development Current home of Theranos Inc. To be demolished spring 2015 Strengthened Under Permit # 891372 3333 Coyote Hill PARC/Xerox No Change 1069 East Meadow Sofia University Strengthened Under Permit # 89669 180 El Camino Real Macy’s No change 180 El Ca Camino Real Bloomingdales New building under construction with demo of old building to follow. 3000 El Camino Real Palo Alto Square No Change 4249 El Camino Real Elks Club Demolished / New Building 4290 El Arbor real planned Demolished / New Building 7 of 4 Camino Real community development 3825 Fabian Space Systems Loral Strengthened Under Permit # 92859 3939 Fabian Altair planned community Development Demolished / New Building 285 Hamilton Palo Alto Development Center No Change 4001 Mirada Miranda Park Demolished / New Building 1651 Page Mill Stanford Clinics Strengthened 1801 Page Mill Multiple Tenants Strengthened Under Permit # 991605 3172 Porter Stanford Strengthened 500 Quarry Sakes Fifth Avenue No Change 865 Stanford LDS Church No Change 525 University Tower No Change Category II – Seismic Summary: September 2014 Total Number 23 Strengthened 5 Demolished / New Building 5 No Change 9 New Construction purposed in 2015 4 8 of 4 Attachment C Inventory of Soft-First Story Multi-Family Dwellings - City of Palo Alto Santa Clara County Hazard Mitigation Plan Updated September 2014 In 2003, the Collaborative for Disaster Mitigation at San Jose State University completed an “Inventory of Soft-First Story Multi-Family Dwellings in Santa Clara County”. According to the report the City of Palo Alto had 130 soft-first story multi-family buildings including 1,263 residential units housing 3,158 occupants. The following list of addresses updates the San Jose State University report with updated information from the City of Palo Fire Department, complied in July 2010. Address Occupant Status 1851 Alma 3043 Alma 3053 Alma 3065 Alma 3079 Alma 3087-3095 Alma One (1) Building 3297 Alma 3353 Alma Voluntary Seismic Upgrade 06- 03192 3357 Alma 4157 Byron Voluntary Seismic Upgrade 06- 03088 4160 Byron 4170 Byron Voluntary Seismic Upgrade 06- 03089 4171 Byron 4180 Byron 4185 Byron 4190 Byron 720 California 750 California 780 California 122-128 Channing Possibly Demo – Need to Confirm 460 Channing Voluntary Seismic Upgrade Foundation Only 634 College 657 College 664 College 811 College 819 College 827 College 725 Cowper 825 Cowper 936-940 Cowper One (1) Building 220 Curtner Bldg 1 & 2 Two (2) Buildings 241 Curtner Bldg 1 & 2 One (1) Building 242 Curtner 250 Curtner Bldg 1 & 2 Two (2) Buildings 301 Curtner 320 Curtner 322 Curtner 330 Curtner 350 Curtner 380 Curtner Bldg 1 & 2 One (1) Building Voluntary Seismic Upgrade 06- 02139 385 Curtner 391 Curtner 3943 El Camino Real 518 Everett 528 Everett 601-619 Forest One (1) Building 628 Forest 640 Forest 660-666 Forest One (1) Building 668-674 Forest One (1) Building 446-454 Grant One (1) Building 456-464 Grant One (1) Building 630-640 Hamilton One (1) Building 403-407 James 409-419 James One (1) Building 420 James 562 Kendall 630 Los Robles Bldg 1 & 2 Three (3) Buildings 559 Matadero 4211 McKellar One (1) Building 4217 McKellar 575 Middlefield 759 Middlefield 801 Middlefield 3901 -3909 Middlefield One (1) Building 570 Oxford 3833 Park 3860 Park 3875 Park 1072 Tanland 1080 Tanland 1090 Tanland 1091 Tanland 1093 Tanland 1094 Tanland 696 Towle 800 University 812 University Bldg 1 & 2 One (1) Building 831 University 836 University Bldg 1 & 2 One (1) Building 220 Ventura 290 Ventura 310 Ventura 330 Ventura Bldg 1 & 2 One (1) Building 382/384/386/388 Ventura One (1) Building 392/394/396/398 Ventura One (1) Building 438 Ventura 443 Ventura 577 Vista Bldg 1 & 2 One (1) Building 925 Waverly 355 Webster Bldg 1 & 2 One (1) Building 440 Webster 899 Webster 2051 Wellesley Bldg 1 & 2 One (1) Building 4290 Wilkie 4292 Wilkie 4294 Wilkie 4296 Wilkie 4298 Wilkie 2134 Williams 2145 Williams 2175 Williams 2251 Williams 2261 Williams September 2014 SJSU Report City of PA Fire Department Total Number 130 108 Voluntary Seismic Upgrade 6 6 No Change 124 102 1 of 3 City of Palo Alto Seismic Risk Management Program Advisory Committee Members v7_GH_01.15.16 Organization or Company Contact Name Title Stakeholder Category Commitment Status ABAG Dana Brechwald Resilience Specialist policy AG Member Applied Technology Christopher Rojahn Director Emeritus engineers AG Member BCCI Construction Co.Nelson Vineyard Field Operations Manager contractors AG Member BOMA (Building Owners and Managers Association)Sharon Fredlund Executive community AG Member California Apartment Association Tri-County Anil Babbar Executive Director tenants AG Member City of Palo Alto - Economic Development Thomas Fehrenbach Economic Development Manager city staff-economic development AG Member Cody Brock Richard Cody Principal contractors AG Member Hayes Group Ken Hayes Principal architects AG Member Hohbach-Lewin, Inc.Doug Hohbach Principal engineers AG Member Hudson Pacific Properties Shawn Kelly Director, Portfolio Engineering community AG Member Hudson Pacific Properties Teresa Marks Portfolio Manager community AG Member 2 of 3 Organization or Company Contact Name Title Stakeholder Category Commitment Status Office of the City Administrator City and County of San Francisco Patrick Otellini Chief Resilience Officer policy AG Member One Concern Ahmad Wani CEO and CoFounder community AG Member Palo Alto Housing Corp.Georgina Mascarenhas Vice President of Property Management community AG Member Palo Alto Chamber of Commerce Judy Kleinberg CEO/President business interests AG Member PAN (Palo Alto Neighborhoods)Al Dorsky Emergency Service Volunteer community AG Member PAN (Palo Alto Neighborhoods)Annette Glanckopf Emergency Service Volunteer community AG Member Premier Properties Jon Goldman Real Estate Broker/Developer community AG Member Rapp Development Roxy Rapp Owner developers AG Member SILVAR (Silicon Valley Assoc. of Realtors)Jessica Epstein Government Affairs Director community AG Member Sobrato Organization Tim Steele Senior Vice President, Real Estate Development developers AG Member USGS / Bay Area Earthquake Alliance Tom Holzer USGS Engineering Geologist policy AG Member City of Palo Alto - Development Services Peter Pirnejad Director city staff-PCE-building Project Team Member City of Palo Alto - Development Services - Building Division Bud Starmer Building Inspector Supervisor city staff-PCE-building Project Team Member 3 of 3 Organization or Company Contact Name Title Stakeholder Category Commitment Status City of Palo Alto - Development Services - Building Division George Hoyt Chief Building Official city staff-PCE-building Project Team Member City of Palo Alto - Fire James Henrikson Deputy Chief/Fire Marshall city staff-fire Project Team Member City of Palo Alto - Office of Emergency Services Nathaniel Rainey Coordinator city staff-OES Project Team Member City of Palo Alto - Planning & Community Environment Jeremy Dennis Planning Manager city staff-PCE-planning Project Team Member City of Palo Alto - Planning & Community Environment Elena Lee Senior Planner city staff-PCE-planning Project Team Member City of Palo Alto - Public Works Hung Nguyen Project Engineer city staff-PCE-public works Project Team Member Rutherford + Chekene Bret Lizundia Executive Principal R+C consulting team Project Team Member Rutherford + Chekene Marko Schotanus Associate R+C consulting team Project Team Member Sharyl Rabinovici Consulting Sharyl Rabinovici Disaster Mitigation Researcher and Policy Strategist R+C consulting team Project Team Member  1 PALO ALTO’S 2016 SEISMIC RISK MANAGEMENT PROGRAM ADVISORY GROUP SUMMARY REPORT ON PROCESS, DISCUSSIONS, AND OUTCOMES November 21, 2016 OVERVIEW On December 9, 2014, the Policy and Services Committee of the Palo Alto City Council recommended the City Council authorize a Request for Proposal (RFP) to develop information for use in updating the City’s Seismic Hazards Identification Program (Ordinance 3666). The City Council approved the recommendation, an RFP and scope of work was prepared, and a consulting team led by Rutherford + Chekene was selected to develop summarize relevant state and local seismic mitigation legislation, obtain detailed information on Palo Alto’s existing building stock, develop conceptual retrofits for vulnerable buildings, make loss estimates of expected damage to the building stock, and work with a City Advisory Group to develop policy recommendations for consideration by the Council. From an initial meeting in December 2015 through a final meeting in August 2016, the City of Palo Alto (COPA) staff and consultants from Rutherford + Chekene hosted six meetings of a Seismic Risk Management Program Advisory Group. The purpose was to discuss needs and potential directions for COPA leaders to consider going forward in updating the city’s seismic mitigation programs. The convening of a stakeholder advisory group was an essential element of a the project to collect and analyze earthquake risks in Palo Alto’s existing building stock (primarily multi-family and commercial) and narrow in on promising policy alternatives. Over the course of twenty hours of face-to-face information exchange, non-staff participation ranged from seven to 20 persons. Attendees included people with a range of relevant expertise and interests from interested citizens, earthquake risk and engineering experts, local developers and owners, and representatives of various community groups. COPA departments represented included Building, Planning, Fire, Office of Emergency Services, and Public Works. The process was informed by an extensive technical assessment of the earthquake risk landscape in Palo Alto’s existing buildings (excluding single-family and two-family residences). Consultants completed a document review, a street survey of a large sample of buildings, and a loss estimation analysis with and without seismic retrofitting, as well as a comprehensive review of other jurisdictional best practices and the state policy context. Advisory Group members received in-depth briefings on the inventory and loss estimation methods and results. That information formed the basis for clarifying and exploring a range of policy options. This memo summarizes the process, discussions, and outcomes of the City of Palo Alto’s Seismic Risk Management Program Advisory Group efforts. The process was not aimed at creating a consensus document or ratification by majority vote. The end goal was a summary— reflected by this document—of the range of issues and opinions expressed by interested parties who participated. All Advisory Group members had the opportunity to review this memo prior to City of Palo Alto Seismic Risk Management Program Advisory Group Summary Report on Process, Discussions, and Outcomes November 21, 2016 2 final submittal by the Consultants to COPA staff. The information herein will be provided to the City Council later in the first quarter of 2017 as they consider potential revisions to the City of Palo Alto’s current seismic risk management program and seismic hazard identification ordinance. POLICY OPTION DISCUSSIONS Scope of the Seismic Risk Problem in Palo Alto Palo Alto’s existing seismic mitigation program, one of the first and most innovative of its kind, focuses on three categories of buildings based on age of construction and structural type and occupancy. Category I is for unreinforced masonry (URM) buildings with more than six occupants and more than 1,900 sf. Category II is for buildings built before 1935 with over 100 occupants. Category III is for buildings built before August 1, 1976 with over 300 occupants. In the 12/9/14 COPA staff report, there were 47 buildings in Category I, 19 in Category II, and 23 in Category III. The program required owners to do a seismic evaluation, but left them the choice of whether to actually perform a retrofit. Owners and developers were offered a Floor Area Ratio (FAR) bonus in exchange for completing basic retrofit work. This tactic was successful for addressing the majority of the Category I, II, and III buildings either by seismic retrofitting or by demolition. Currently, approximately ten Category I, four Category II, and nine Category III buildings remain standing without seismic retrofitting. The modest overall scope of the ordinance left many other vulnerable building types unaddressed. The current technical assessment covered a much larger set of buildings with a wider array of potentially vulnerable structural systems. The findings showed that the estimated losses to Palo Alto buildings and contents in a major event will be significant, on the order of $2.4 billion. Furthermore, this figure does not include implications such as lives lost, business disruption, or ripple effects in the local economy or real estate market. Much of this loss will not be insured. Loss Estimates and Cost Benefit Assessments of Local Inventory Generally, buildings designed to a more recent building code are expected to perform well. Older buildings built before milestone improvements in code provisions can be more seismically vulnerable. Among the building type categories of highest concern in Palo Alto besides the three categories covered by the COPA ordinance are pre-1977 soft-story wood frame (with approximately 294 buildings), pre-1998 tilt-up concrete (99 buildings), pre-1977 concrete soft- story (37 buildings), pre-1998 steel moment frame (35 buildings), and other pre-1977 concrete construction (170 buildings). Participants generally agreed that addressing building types known to be potentially hazardous and with large numbers of buildings will lead to the greatest reduction in losses. It was also nearly unanimous that Palo Alto should seek out ways to resolve the approximately 23 cases of Category I, II, or III buildings that have not yet been addressed. The technical assessment revealed that the potential reduction in damage costs from retrofitting is significant. Some building categories have greater benefits than others in terms of loss City of Palo Alto Seismic Risk Management Program Advisory Group Summary Report on Process, Discussions, and Outcomes November 21, 2016 3 reduction relative to estimated retrofit costs, with a low of approximately 1:1 to a high of approximately 11:1. Two scenarios earthquake events along the San Andreas Fault developed by the United States Geological Survey were used in the loss estimates: a major M7.9 event, and a strong M6.7 event. For a more accurate estimate of costs and benefits, all future earthquakes would need to be considered. It made sense to participants to use the estimated retrofit benefit- cost ratio as one factor (among many) in considering which categories of buildings COPA should address first. Other factors could include loss of life, business disruption, and displaced residents, though these estimates were not within the scope of the loss estimate. Approaches to Address Seismic Retrofitting Used by Other Jurisdictions The policy and best practices reviews showed that a wide range of policy options are being used in other jurisdictions to address vulnerabilities similar to those faced by Palo Alto. Potential policy mechanisms include: inventory only, notify only, voluntary retrofit, disclosure approaches, mandatory screening, mandatory evaluation, and mandatory retrofit, with either a fixed timeline or when triggered (for instance, at time of transfer). Mitigation programs often consist of a package of policy mechanisms for different building categories, and use several mechanisms at the same time for different building categories or in phases. Participants were also informed about precedents for a variety of incentives that can be offered for some or all affected owners to ease the process of program compliance. Bundled Options with Increasing Regulatory Strength The Advisory Group, together with COPA staff, received detailed briefings on the above findings, asked questions, and discussed potential community responses and concerns. Half way through the process, consultants introduced to participants a range of specific policy options to frame the conversation about the most needed and viable policy approaches. The aims were to identify areas of general agreement, specific approaches that were either favored or not, and issues needing further information or discussion. Six possible options were suggested as follows: Option 1—Status Quo. Existing program (Palo Alto Municipal Code Chapter 16.42) ordinance with its mandatory evaluation, voluntary retrofit approach would remain in place without changes. Option 2—Increase Scope but Retrofit Remains Voluntary. Additional categories of structures would be added to the mandatory evaluation requirements beyond those of the current ordinance. Option 3—Increase Scope with Additional Disclosure Measures. Like Option 2, this option would target a larger set of building categories than the current ordinance and make use of disclosure measures such as prominently posting the building list on the City website, notifying tenants, requiring signage, and/or recording notice on the property title. Option 4—Increase Scope with Some Categories Voluntary and a Few More Categories Mandatory, with Enforcement by a Trigger Threshold. This option would require retrofitting for some building types whenever certain future events take place, such as when a building is sold or undergoes substantial renovation above a set threshold such as cost. City of Palo Alto Seismic Risk Management Program Advisory Group Summary Report on Process, Discussions, and Outcomes November 21, 2016 4 Option 5—Increase Scope with Some Categories Voluntary and a Few Categories Mandatory, with Enforcement on a Fixed Timeline. This option would be similar to Option 4, but retrofitting is required according to a fixed timeline. Option 6—Increase Scope, Retrofit is Mandatory for More Categories. Retrofitting would be required on a fixed timeline for additional categories. The possibility of having different requirements or timelines for residential compared to non- residential properties was identified. The group was also open to using location, occupancy type, and/or number of occupants as part of the criteria for selecting a structural type to be included in the updated ordinance, and/or as a basis for setting appropriate timelines, prioritization, tiers, or phasing. In general, mandatory evaluation was seen as a way to make sure building owners and the City are properly informed about existing risks, and as a way to motivate more voluntary retrofit work. Triggered upgrades were also discussed favorably, though some felt this kind of uncertain timeline was not appropriate for risks that city leaders have concluded are unacceptable. There was support for using combinations of the options for different building types, so that some building types would have more stringent requirements than others. Many members of the Advisory Group, though not all, were positive about including mandatory requirements for some building categories (Option 5). PERSPECTIVES ON DISCLOSURE MEASURES AND INCENTIVES Along with these options, the group discussed how COPA could utilize a variety of disclosure measures and incentives. Disclosure Measures Once introduced to the rationale and precedents for use of disclosure measures, the group supported the idea of making the list of buildings affected by the current and any future ordinance update more prominent and available to the public. The group regarded the City’s website and possibly tenant notification as the best ways to do this, while they had less interest in community education efforts. There was some concern that placing notice on the title would not be worth the initial and ongoing efforts necessary to keep such information current. The group discussed extensively but ultimately expressed relatively low support for signage or placarding, unless this tactic was used later in a program as a penalty for failure to comply in a timely manner. Incentives to Undertake Seismic Retrofitting The group was eager to discuss possible incentives, from the standpoint of both facilitating prompt action and easing the burden on owners. Incentives were viewed as particularly important to the success of any voluntary program. Most of the group were in favor of the City offering modest financial help in the form of City fee waivers or expedited permitting, but acknowledged that these measures may not significantly help the property owner lessen project costs. City of Palo Alto Seismic Risk Management Program Advisory Group Summary Report on Process, Discussions, and Outcomes November 21, 2016 5 Therefore, there was wide agreement that these should not be the only types of incentives offered. There was interest in having Palo Alto join the small but growing number of jurisdictions that have joined statewide PACE1 loan financing programs, though it is not clear how many potentially affected property owners would benefit from or actually take advantage of this kind of help. The group expressed minimal interest in pursuing ways to offer owners deep financial assistance, such as declaration of special district or passage of bond measures. Opinions were split about the effectiveness of using transfer of development rights (TDR)2, floor area ratio bonuses, and parking exemptions. Some participants felt their constituencies would not benefit, or would be negatively impacted, by these measures. Others felt that such concessions on the part of the City would be a very effective way, as they have been in the past, for motivating earthquake improvements without issuing heavy mandates. Relaxation from parking provisions for example, could be seen as a helpful incentive to commercial property owners, but it would less desirable for tenants and others seeking parking in congested parts of the city such as the downtown area. Allowing conversion of a portion of ground story parking to occupied residential space as an incentive to spur retrofitting of soft-story wood frame buildings was discussed, as this is being considered in other jurisdictions. It was noted that parking is a desirable feature to renters and this may not be strong incentive if rental rates are reduced due to lack of parking. Some policy incentives, especially the complicated TDR, might be administrative challenging to implement and will require deep cooperation with Planning Department and coordination with the City’s general plan. PREFERRED POLICY DIRECTIONS Discussions with the Advisory Group revealed little to no support for maintaining the status quo. Strong support did exist for:  Implementing retrofit of buildings already in the current program, particularly URM buildings.  Addressing more building types, particularly soft-story wood frame and older concrete tilt-up, that would affect the most people. Completion of the City’s Current Seismic Program For buildings under the current ordinance, the Advisory Group generally thought a mandatory retrofit requirement would be feasible and fair. Three decades later, market forces alone have not 1 With a Property Assessed Clean Energy (PACE) loan, first pioneered for solar panels by the City of Berkeley in 2008, owners can apply for 100 percent financing for seismic retrofit work at competitive fixed rates over the useful life of the improvements, to be repaid over up to 20 years with an assessment added to the property’s tax bill. 2 TDR allows owners to transfer unused development rights that are comparable to the value of the retrofit to another property in the community. In other words, in exchange for completing certain seismic rehabilitation work, additional development rights are gained elsewhere. This is a common measure used for historic structures. City of Palo Alto Seismic Risk Management Program Advisory Group Summary Report on Process, Discussions, and Outcomes November 21, 2016 6 been enough to motivate upgrade of these structures. Because the barriers to retrofit work for these properties are not known, case-by-case management by COPA staff may be necessary. There was hesitance, however, about extending or increasing incentives for owners that had not voluntarily taken advantage of the FAR bonus available in the past. Extending the Seismic Program to Other Potentially Vulnerable Building Types In the discussion of expanding the scope of the City’s seismic program, the goal was to focus on a subset of categories that seemed to have high potential to benefit the owner, occupants, and the broader community. Consultants briefed the group on structural types generally known to be vulnerable that are common or significant to Palo Alto and estimated to have reasonable loss reduction to retrofit cost ratios. Detailed conversations took place about other building category priorities and policy features that could be incorporated into Options 3, 4, and 5. The group showed high interest in addressing multi-family residential earthquake risks, in particular by starting a soft-story wood frame program as many other California cities have done. One soft-story wood frame program approach discussed was to have two phases, where owners would first be given several years following notification to do a voluntary retrofit, along with more generous incentives. Later, a mandatory timeline would kick in and incentives would be phased out. The group discussed that exemptions such as parking requirements, permission to add other unit(s), or the ability to transfer development rights for additional square footage would likely be attractive and useful incentives for this building type. Other building categories of concern were reviewed at the last meeting. Regarding pre-1998 tilt- up concrete buildings, there are a modest number in Palo Alto, but group members noted that their uses are changing. Many of what previously might be warehouses are now being repurposed for use as office space, and the higher occupant density increases the safety stakes of any seismic deficiencies. There is currently no policy or code requirement to address earthquake vulnerabilities if other upgrades and build out are being done but there is no significant impact or revision to the structural system. A renovation trigger was discussed, where substantial renovation work would trigger a mandatory seismic upgrade. The trigger could be based on whether a ratio is exceeded of the cost of the renovation work to the replacement value of the building. This has been done in some jurisdictions in the past. The replacement value could be based on a standardized set of costs per square foot for different occupancy types. It should be noted that some individuals in the group expressed concern that a renovation trigger might discourage owners from upgrading or renovating their buildings, depending on the trigger threshold and the cost of the retrofit. POTENTIAL ISSUES FOR FUTURE STUDY For some issues, based on Advisory Group discussions, additional information may be beneficial to help in refining a new strategy and to better understand potential impacts on key stakeholders City of Palo Alto Seismic Risk Management Program Advisory Group Summary Report on Process, Discussions, and Outcomes November 21, 2016 7 and community concerns. These issues are primarily economic and are outside the scope of the current study. The City Council may wish to direct staff and/or outside consultants to investigate some of these items in more detail as the seismic risk management program effort proceeds. Issues include the following: • Occupants and tenants – How much would a typical retrofit add to the monthly rent of a multifamily soft- story wood frame apartment tenant? – Would some tenants be unable to afford a rent increase and seek housing elsewhere in Palo Alto or move outside the city (and if so, how many might be displaced)? – If soft-story wood frame apartments in Palo Alto are retrofitted in time before the next major earthquake, how much less displacement of residents would occur as a result of the earthquake? – What categories of buildings are most important to address in order to help maintain the commercial viability and vitality of the City’s core business districts and tax base? • Property owners, developers, and business owners – What are the characteristics of property owners that would be affected? – How might small businesses be affected compared to larger ones? – How many property owners are in need of lower cost capital or other substantial financial assistance to fund retrofitting? • City departmental resources and budgets – What would be the loss in revenue to the Building Department if fee waivers were offered? – What would be the staffing and budgetary needs over time to administer an expanded program that addresses additional building types? – What kinds of interdepartmental cooperation and staff resources in other departments are necessary to ensure effective implementation and coordination with other city planning and public safety efforts? • Overall community economic health – What kind of benefits could accrue to Palo Alto in terms of maintaining community function and ability to recover if various building categories are retrofitted in time before the next major earthquake? • Other related issues City of Palo Alto Seismic Risk Management Program Advisory Group Summary Report on Process, Discussions, and Outcomes November 21, 2016 8 – It was brought up that the Building Department needs flexibility and authority to take steps to get tough seismic mitigation projects done. One idea was to grant the Building Official the ability to classify certain projects (with well-specified criteria) as warranting a kind of “seismic safety” or “earthquake resilience” fast tracking, with COPA departments agreeing to coordinate on a specified accelerated project review timeframe. – Although outside the formal scope of this planning effort, several Advisory Group members commented that it would be desirable for the City to do some kind of assessment of any earthquake mitigation needs in public buildings and facilities serving the City. – Advisory group members recommended the community be informed of Palo Alto’s overall potential seismic risk by providing a summary of potential impacts on the City’s website, including the expected performance of vulnerable buildings. – The group also had a high degree of support for recommending that the City initiate and nest future earthquake mitigation programs within a broader disaster or community resilience initiative, as cities such as Los Angeles, Berkeley, and San Francisco have done. This could be incorporated in the update of the City’s Comprehensive Plan Safety Element. There was insufficient time in the project’s six advisory group meetings to consider potential initiatives to assess risks for cell phone towers, water supply, facades, private schools, post-earthquake shelter facilities, and/or other assets important to community recovery. SUMMARY OF RECOMMENDED POLICY DIRECTIONS There was broad consensus that the City’s seismic program should go beyond the status quo by increasing the number of building types that are included and the associated requirements. The following table summarizes the City’s current seismic risk management program features, and it provides recommended policy directions for different types of building categories, both for those in the current program and those proposed to be added to the program, including the approximate number of affected buildings, construction type and date, evaluation report and construction completion deadlines, potential preferred disclosure and incentive options, and whether retrofitting remains voluntary, is triggered by a sale or a substantial renovation, or is mandatory. The following summarizes the key issue of whether voluntary, triggered, or mandatory approaches were preferred.  There was broad consensus that seismic retrofitting for the remaining URM buildings (Category I) should be made mandatory.  There was general agreement that soft-story wood frame buildings (Category IV) and somewhat general agreement that older tilt-up buildings (Category V) should require City of Palo Alto Seismic Risk Management Program Advisory Group Summary Report on Process, Discussions, and Outcomes November 21, 2016 9 strengthening either by a sale or substantial renovation trigger or on a mandatory fixed timeline.  There was less of a consensus on whether the older higher occupancy buildings in the current ordinance (Category II and III) should be converted to use a mandatory approach, though a triggered approach may represent a reasonable middle ground.  There were supporters, but no clear consensus, for voluntary, triggered, or mandatory approaches to addressing older soft-story concrete buildings (Category VI) and older steel moment frame buildings (Category VII).  Other older nonductile concrete buildings (Category VIII) were discussed, but due to the lack of inexpensive analytical methods for reliably identifying the worst of these buildings, inclusion of this building category in an updated ordinance is not recommended at this time. Such buildings could be included in the future when such analytical methods have been developed in the engineering community. City of Palo Alto Seismic Risk Management Program Advisory Group Summary Report on Process, Discussions, and Outcomes November 21, 2016 10 Summary of Recommended Policy Directions Category Approx. Number Building Type Date of Construction Occupants Evaluation Report Voluntary, Triggered, or Mandatory Retrofit1 Deadlines for Evaluation Report and Retrofit Construction (years)2 Disclosure Potential Incentives Current Program (Potential Revision in Italics) I 10 Un- reinforced masonry NA Over 6 (and over 1,900 sf) Required Mandatory Report: Expired Construction: 2-4 Website listing and tenant notification Fee waiver, expedited permitting, FAR bonus/ transfer of development rights (TDR) II 4 Any Before 1/1/35 Over 100 Required Voluntary or Triggered Report: Expired Construction • Voluntary: Not required • Triggered: At sale or renovation III 9 Any Before 8/1/76 Over 300 Required Voluntary or Triggered Expanded Program IV 294 Soft-story wood frame Before 1977 Any Required Triggered or Mandatory Report: 2-4 Construction • Triggered: At sale or renovation • Mandatory: 4-6 Same as above Fee waiver, expedited permitting, TDR, parking exemptions, permission to add units V 99 Tilt-up Before 1998 Any Required Triggered or Mandatory Report: 2-4 Construction • Triggered: At sale or renovation • Mandatory: 4-6 Same as above Same as Categories I, II and III VI 37 Soft-story concrete Before 1977 Any Required Voluntary, Triggered or Mandatory Report: 2-4 Construction • Voluntary: Not required • Triggered: At sale or renovation • Mandatory: 6-8 Same as above Same as Categories I, II and III VII 35 Steel moment frame Before 1998 Any Required Voluntary, Triggered or Mandatory VIII TBD Other older nonductile concrete Before 1977 Any Not rec. at this time Not recommended at this time Report: NA Construction: NA NA NA 1Voluntary: Retrofit is voluntary. Triggered: Retrofit is triggered when the building is sold or undergoes substantial renovation. Mandatory: Retrofit is required per a fixed timeline. 2Deadlines provide a potential range. Timelines would vary depending on tiers or priority groupings of different subcategories. Seismic Risk Management Program Advisory Committee Meeting #1 Dec 16th, 2015 2pm-5pm MEETING MINUTES – PROGRAM ADVISORY COMMITTEE MEETING Attendees: George Hoyt (GH), Chief Building Official, City of Palo Alto (COPA) Bud Starmer (BS), Building Inspection Supervisor, COPA Nathan Rainey (NR), OES Coordinator, COPA Thomas Fehrenbach (TF), Economic Development, COPA Peter Pirnejad (PP), DSD Director, COPA Nathaniel Rainey (NR), OES, COPA Bret Lizundia (BL), Rutherford + Chekene (R+C) Sharyl Rabinovici (SR), Public Policy and Community Engagement Consultant Marko Schotanus (MS), R+C Anil Babbar Dana Brechwald, Policy Richard Cody, Contractor Al Dorsky, Community Jessica Epstein, Community Sharon Fredlund, Community Annette Glanckopf, Community Jon Goldman, Community Ken Hayes, Architect Doug Hobach, Architect Tom Holzer, Policy Shawn Kelly, Community Judy Kleinberg, Business Interest Teresa Marks, Community Georgina Mascarehas, Community Roxy Rapp, Developer Christopher Rojahn, Engineer/Resident Tim Steele, Developer Nelson Vineyard, Contractor/Resident Ahmad Wani, Community Minutes Prepared By: Lisa Green, Admin Assoc II, COPA ITEMS DISCUSSION Welcome  GH: Welcome to the Advisory Committee. This Committee has been put together to get expert advice and have some open discussions. Introduction of Project History, Motivations and Vision  GH: After the 2014 earthquake Council directed staff to analyze the existing Seismic Hazard Identification Program and make modifications and recommendations.  GH: The goals are to gather technical information, analyze the information, and make recommendations for future policy.  GH: The City adopted its ordinance in 1986 which includes three different categories of buildings. Category I was for unreinforced masonry buildings, except those smaller than 1,900 sf with six or fewer occupants. Category II was for buildings building prior to 1935 with 100 or more occupants. Category III was for buildings built prior to August 1, 1976 with 300 or more occupants. “Soft story” structures or other buildings types currently considered vulnerable were not included. There are 23 buildings on the City’s list that have not been retrofitted.  The City wants to turn to the Advisory Committee for advice, expertise, and different perspectives. 1 Seismic Risk Management Program Advisory Committee | City of Palo Alto Seismic Risk Management Program Advisory Committee Meeting #1 Dec 16th, 2015 2pm-5pm MEETING MINUTES – PROGRAM ADVISORY COMMITTEE MEETING  GH: The Committee will look at the policy questions and gather “food for thought.” The City will use the advice for future guidelines and to raise awareness. The City wants to hear the experiences, expertise, view points, and opinions of the Advisory Committee. Self-Introductions  GH introduced City of Palo Alto Project Team and key staff (see above section, “Attendees” list)  SR introduced the Rutherford + Chekene (R+C) consulting team – SR pointing to green packets highlighting the pink card asking attendees to give their name, affiliation, and write down “How do earthquake issues relate to your work or the group you represent?”  GH: Welcomed guests and community representatives (see above section, “Attendees” list).  Attendees introduced themselves, their affiliations, and their interest in the Advisory Committee. Overview of Project Plan  BL presentation: The project plan overview highlighted what is currently known, not known, and to be studied regarding seismic vulnerabilities in Palo Alto’s existing buildings. We want to know/understand the inventory in PA. What kind of structural systems does PA have? We have some idea but we need to understand more. The City Council wants the Advisory Committee to provide advice and input to the project, and hopefully a coordinated set of recommendations for Council to consider. BL summarized some key information that is known based on County assessor files, City GIS files, and earlier inventory efforts. There are over 21,000 tax parcels in PA. Of these over 15,000 are for one and two family residences which are not included in the project tasks for inventories or loss estimates. Of the remaining approximately 6,000 parcels, about 3,600 are multi-family residential with three or more units, and there are about 940 retail, 680 public, 200 industrial, and 540 other occupancies. For most, we have the square footage, year built, and the occupancy. BL presented a slide showing the anticipated level of shaking from two USGS earthquake scenarios on the San Andreas Fault. We currently do not know the structural system of the buildings, or the building types expected to have the greatest aggregate risk of lost units or cost of repairs or reduction in losses from mitigation efforts. We do not yet know the level of community interest in an updated seismic risk management program. Key project tasks include development of an electronic inventory database based on digital files and sidewalks surveys, loss estimates for two earthquake scenarios with and without retrofitting, prioritization of potentially hazardous building types, and recommendation on options for program updates. As information is collected and refined, it will be shared with the Advisory Committee to help them provide advice on recommendations. Key questions include what building types might be included in the future program. What geographical areas do we look at? What do we worry about and not worry about? Older tilt up buildings? Soft story wood frame buildings? Houses on hills? Steel frame buildings? What are the recommendations and what will shape the recommendations?  SR is developing a report on state and local legislative context and what other cities have done and are currently doing. She provided a brief summary to the group. There are currently approximately 50 state laws for earthquakes. Cities are empowered to make laws for earthquake safety, and they will have to mandate what retrofits are applicable. Large incentives do work and they do help with getting through stumbling blocks. The range of activities covered by different cities and the approach they use 2 Seismic Risk Management Program Advisory Committee | City of Palo Alto Seismic Risk Management Program Advisory Committee Meeting #1 Dec 16th, 2015 2pm-5pm MEETING MINUTES – PROGRAM ADVISORY COMMITTEE MEETING varies widely. The Committee will need to think about how we can engage the community more; what will work? Cities have done different things such as mandatory retrofits (Fremont). Some have done it in phases with multiple efforts. What about soft-story retrofits? There was a San Francisco flagship effort; it’s a study on line, called the Community Action Plan for Seismic Safety (CAPSS) which led to a current comprehensive program called the Earthquake Safety Implementation Program (ESIP). Think about this type of plan by San Francisco. A recovery plan is very important. A Response plan is also very important. This Committee, if it wants, can recommend that the City look into defining broader community goals and priorities for a comprehensive resilience plan, but what we’re dealing with here is the structural mitigation aspect. Please look at Key Policy Questions for the Advisory Group (Policy Questions). The homework is to check to see what questions are important to you or that you want to know more about. The Committee will need to answer these questions by the end of this process. San Francisco did a retrofit fair. It was a successful public outreach activity. There are questions at the bottom of the agenda. Grade them on a scale of 1-10, with 1 most important. Things the Committee will need to consider are what are the priorities of all the buildings; which are more vulnerable (soft story, weak 1st story)? What we want to know is where this question is on your priority level.  Questions and answers to follow:  Audience: What standards are you using for loss estimate guidelines? BL Reply: We are using the HAZUS methodology, which is the national standard for regional loss estimation of large portfolios of buildings.  Audience: Will we come up with any safety goals? Reply: Yes, first goal will be that buildings don’t collapse. However, we have realized that we need to worry about how fast the community can recover. We need structural performance goals that are related to resilience goals.  Audience: Will you have broad hazard reduction goals? Does PA have incentives? PP reply: Yes, but we need to focus on the study/inventory first and not incentivize the wrong things. We have a seismic risk mitigation ordinance in PA; our URM policy was one of the first in the state. It’s successful because of the speed of impact and the engagement of the community. We will look at the success of different incentives used and will be looking for recommendations at the end of this process. The Advisory Committee will be getting a report on what was successful and what was not successful for other cities.  Audience: Regarding the Napa quake - Mobile homes were impacted and the California Department of Housing and Community Development (HCD) oversaw the supports…. There was no real communication between the Building Dept. and HCD. Are you looking at the jurisdictional issues? GH reply: No, we haven’t. It’s complex, and it’s a huge hole with a ton of issues. The biggest issue is fire.  Audience: Question about the bullet point of Resilience - rather than our ideas coming 3 Seismic Risk Management Program Advisory Committee | City of Palo Alto Seismic Risk Management Program Advisory Committee Meeting #1 Dec 16th, 2015 2pm-5pm MEETING MINUTES – PROGRAM ADVISORY COMMITTEE MEETING to you, can you share some of the context you have thought about around the hazard mitigation plan, general plan updates, and any recovery plans? And how is this going to fit into the larger suite of thought in the City? GH reply: This is a huge topic. We’ll start here, but we’ll only be able to do so much of that. We can only tackle some of the pieces. PP commented that at this point we are talking about buildings not places. Second step would be to tackle how this connects with the Comprehensive Plan and Sustainability Plan and hope we can get further with this than we started.  Audience: Will the inventory include small residences as well as larger buildings, schools for example? Reply BL: The only buildings that are excluded are one- and two-family homes. The extent to which schools will be included is not known yet.  Audience: How are we going to prepare for the earthquake and how will we attack it after the quake? Are there going to be programs for inspections to check earthquake stability and quickly assess buildings in a fast manor, like the program San Francisco has? Reply: GH says this is a large focus for PA. We are working with EOC. We are currently in contact with our bigger facilities like HP and Space Systems Loral which has plans for post-earthquake buildings safety evaluations using private engineering consultants. We have initiated those conversations and working on those programs. We have included Planning and Fire to come up with a resiliency plan. Council doesn’t want people leaving and shutting downtown business and losing income for this issue. . We’ll be looking at best practices and setting guidelines.  Audience: Businesses create a huge influx of people during business hours; we are looking for reassurance for daytime earthquake emergency. Small businesses don’t have any plans or preparedness. Are we going to address this? Reply GH: OES is here, and they have a strong focus on daytime populations. Ken Dueker knows a lot about this issue, and we’ll try to have him come to talk about this issue and how this fits into their effort. We’ll continue to build on this topic and include it in the timeline.  Audience: VM Ware is prepared for an earthquake as well as some other known companies like Roche. Nathan Rainey might be able to expand on this.  Audience member: We have lots of data for sub-block / city-block level. Some of it is artificially generated, AI. We have a probability/fragility function for every city block. This information might be helpful. BL Reply: Yes, we are open to any information that we can obtain if you’re willing to share.  Audience: A question about the chart, the PA Ordinance that had 89 buildings total with only one building that had no change and quite a few that were retrofitted or demolished. What does that really represent? Is that a past study? Reply: GH said it was a study that was done in the late 80s where they had an advisory committee with a lot of engineers and representatives from the community. They established what the priority of buildings would be. They established the different three levels of categories. There were originally six levels covering a larger 4 Seismic Risk Management Program Advisory Committee | City of Palo Alto Seismic Risk Management Program Advisory Committee Meeting #1 Dec 16th, 2015 2pm-5pm MEETING MINUTES – PROGRAM ADVISORY COMMITTEE MEETING scope of PA buildings, but the extent was reduced to the final three categories due to community concerns. They set up some exemptions like historical buildings. We have buildings that haven’t been included or touched. BL: The question is do you want to do more than what is currently being done? What’s in the ordinance is quite small. Should the ordinance be expanded to include more categories?  Audience: A goal should be setting priorities for the different levels in saving lives and people getting hurt. Some priorities may not be mandated. Reply BL: Back then 30 years ago the priority was on life safety, the riskiest buildings (like unreinforced masonry bearing wall buildings), and how many people are threatened by building damage. As time has gone on, there is a broader way of thinking about possible performance objectives that include reducing building losses and downtime from damage. There is more interest now in keeping people in their homes and businesses to help improve community resilience. After major earthquakes, like the Northridge earthquake, what we know now about vulnerability has deepened and widened.  Audience: What’s the scope of this study? Reply PP: Staff is instructed to develop a section of our website with all of our standing committees including this one. There will be a scope of this study, agendas, minutes, as well as all other supporting materials. It will give you the background and information that will provide you with a basis. It was suggested we put up Code information as well. We’ll put all this information in a place that is readily available. Development of key questions and issues list  SR began an open discussion to solicit input and issues that the Advisory Group wants to look into. She took notes on whiteboard comments and questions (see pictures below). • There is a limited geography scope. • What’s the vulnerability of the City? • We need a clear understanding of risks. Will we know enough from the inventory to make recommendations and, if not, where are the key information gaps?  BL said this Committee is going into new territory. We will take a good look at the old territory and see what can be improved. We’ll do loss estimates on a variety of building types. We’ll answer some key things about how will the community be affected. • Will the recovery plan include sufficient City resources? GH says a lot is being done regarding being prepared for earthquake impacts. Right now we are putting Inspectors and Planning personnel through training. • Does the City’s current seismic mitigation ordinance only cover buildings in the 5 Seismic Risk Management Program Advisory Committee | City of Palo Alto Seismic Risk Management Program Advisory Committee Meeting #1 Dec 16th, 2015 2pm-5pm MEETING MINUTES – PROGRAM ADVISORY COMMITTEE MEETING downtown area? • How can we get a more holistic view and approach from the City? • We need more information sharing: what’s already been done and what were the mistakes? • What is the definition of community? Small business will be struggling to keep their doors open. We want to be careful about what we want the “community” to do.  Audience comment: We need advocacy for small business, renters, and lower income people. They are vulnerable. It’s important to remember that policies will affect people in different ways.  Audience comment: There are 3,630 multi-family buildings over two units. It’s got profound implications.  SR: Write your comments on the yellow notecard included in the green folder. We’d like to get a pulse. Is this important? Is there interest? Five people turned in postcards. Written comments received are below (Scale: 1 = highest and 10 = lowest): • Importance of structural vulnerability issues for Palo Alto: o 1 o 1 o “1” if there are a large number of buildings that could collapse in a magnitude 7.2 or larger event, 3 to 4 if not. o 4 o “7” – we should encourage owners to be proactive participants (i.e., rather than solely relying on city government). o 8 • Community interest in the City doing more on this issue: o 2 o 5 to 6 – could be higher if presented correctly (e.g., What will this do for me?” o 6 o 7 o 10 6 Seismic Risk Management Program Advisory Committee | City of Palo Alto Seismic Risk Management Program Advisory Committee Meeting #1 Dec 16th, 2015 2pm-5pm MEETING MINUTES – PROGRAM ADVISORY COMMITTEE MEETING Discussion of plan for Advisory Group role and process  BL presentation: What’s the Advisory Committee approach? The scope is broad and we need to narrow the focus. Presented the Advisory Group Process slide.  There will be six meetings for this plan. It will be very challenging to fit all the information sharing, discussions, and development of recommendations we need in this amount of time. These meetings have to be efficient and effective.  Draft Advisory Committee Process and Questions will give us a sense of the scope. This Committee will need to corral this issue and get a focus. We need to come to a resolution or get a consensus.  There will be a report that will be available to the Committee about what other communities are doing.  By February, we will have the bulk of the Palo Alto inventory work done. We’ll share what we learned. We should have performance and resilience goals. What level of safety are we looking for?  The March meeting could be a retreat for the group.  The Policy & Services Committee will become involved and then it will go to Council.  Do we want to have a Chair, Co-Chair, or no Chair? Do we want to take votes? What are the rules? When do you want to meet, morning, or afternoon? Summarize meeting outcomes, planned interim steps, and agenda topics/date for next meeting  PP: What are we trying to deliver, what are the expectations? We’ll get an initial seismic inventory of our vulnerable buildings first. We’ll have to get more technical data and what criteria are we going to use? What is the definition of vulnerable? Soil types? After the survey what will we do with that information? What management plan will we come up with? What incentives? Will it be an optional or mandatory ordinance? Which ones will we decide to retrofit, what does retrofit mean? We should have clear expectations and deliverables for the next meeting.  PP: We’ll have meeting minutes that will list what decisions were made and the action steps we still need to take. Each meeting will have a clear expectation and deliverables.  PP: We’ll send a Doodle request to get a consensus on when is the next meeting. A website will be on Development Services website, under Task Force. It will have all related information for this meeting.  GH comment: We are not doing a full survey of all the buildings in PA, just in certain areas. We have a limited budget to work with. We are in a discovery phase. When this is complete the Committee will create policies and go to Policy & Services.  PP: Our goal is two hour meetings with recommendations. The exception will be the retreat. Maybe we can get a Technical Advisory Committee (TAC) as a sub group. BS understands all the Utilities requirements, no need for a Utilities Rep in this meeting.  When possible, the goal is two weeks before the meeting we’ll have materials available on the website.  Audience: Would like to see the subgroups on the next agenda. 7 Seismic Risk Management Program Advisory Committee | City of Palo Alto Seismic Risk Management Program Advisory Committee Meeting #1 Dec 16th, 2015 2pm-5pm MEETING MINUTES – PROGRAM ADVISORY COMMITTEE MEETING Action Items  For the January meeting, a Doodle request will be sent for a consensus on the date and time. Post-Meeting Note: The January meeting has been scheduled for 1/27/16, 2-4pm at the downtown library.  A link to the website will be sent.  The January agenda will be made available on the website.  Please look at Key Policy Questions and think about answers. Add to the questions if necessary. 8 Seismic Risk Management Program Advisory Committee | City of Palo Alto Seismic Risk Management Program Advisory Committee Meeting #1 Dec 16th, 2015 2pm-5pm MEETING MINUTES – PROGRAM ADVISORY COMMITTEE MEETING 9 Seismic Risk Management Program Advisory Committee | City of Palo Alto Seismic Risk Management Program Advisory Committee Meeting #1 Dec 16th, 2015 2pm-5pm MEETING MINUTES – PROGRAM ADVISORY COMMITTEE MEETING 10 Seismic Risk Management Program Advisory Committee | City of Palo Alto City of Palo Alto Seismic Risk Management Program Advisory Group Meeting #1 December 16, 2015 Project Plan Briefing Project Goals •Make a leading program even better •Extensive city and stakeholder involvement •Efficient inventory creation •Focused loss estimation •Thoughtful, consensus-based, holistic recommendations for program updates Project Plan Overview Topics •Summary of current Palo Alto ordinance status •What is currently known? •What is currently not known? •What will be studied in this project regarding seismic vulnerabilities in Palo Alto’s existing buildings? Current Palo Alto Ordinance Category I (URM over 1900 sf & 6 occupants) Category II (Before 1935 and over 100 occupants) Category III (Before 8/1/76 and over 300 occupants) All Categories Total 47 19 23 89 Retrofit 22 13 5 40 Demolished 14 2 5 21 Demo Proposed 0 0 4 4 Exempt 1 0 0 1 No change 10 4 9 23 Source: 12/9/14 City of Palo Alto Policy and Services Committee staff report. Status as of September 2014. What is Currently Known? •From County assessor files, we have: –APN, number of parcels –Year built, occupancy type –Square footage, number of stories •From City GIS files we have: –Shape file of building footprint –Location by latitude/longitude •From earlier inventory efforts, we have: –Inventory forms for select set of buildings –Wood frame soft-story survey by SJSU and Palo Alto Fire Department Year Built Occupancy Parcels in Scope •Total PA parcels: 21,187 •1 and 2 family: 15,198 •Remaining: 5,989 –3 or more unit residential: 3,630 –Retail: 938 –Public: 684 –Industrial/mfr: 198 –Other: 539 Residential 1+2 Residential 3+ Retail Public Industrial & Manufacturing Other Retail Public Industrial & Manufacturing Other What is Currently Known? M7.2 M7.9 Gunn Gunn What is Currently Not Known? •Structural systems of buildings in assessor files •Actual number of buildings that are in different building types, including those considered potentially hazardous What is Currently Not Known? •Building types expected to have the greatest aggregate damage –Largest risk of lost units –Largest cost of repair •Achievable reduction in losses from retrofit of selected buildings •Effectiveness of past retrofit work in current context What is Currently Not Known? •Level of community interest in an updated seismic risk management program Key Project Tasks: Understand Building Stock •Digital files •Internet •Review of drawings •Sidewalk survey –Trial run –Sidewalk survey DOWNTOWN: RETAIL E. MEADOW CIRCLE: OFFICE/ MANUFACTURING CURTNER AVE: APARTMENTS PORTER DRIVE: OFFICE 11/24/15 Trial Run Key Project Tasks: Understand Potential Impacts •Loss estimates –Two scenarios –Dollar losses and percent damaged –By building type and location –With retrofit and without •Realistic retrofits: –Conceptual retrofits with cost estimates Key Project Tasks: Prioritize Building Types & Conditions •Understanding of hazardous buildings evolves •Building code typically gets more stringent •Possible hazardous building types: –Remaining URM –Multi-unit wood frame buildings with weak first stories –Older concrete Key Project Tasks: Prioritize Building Types & Conditions •Possible hazardous types (cont.) –Older tilt-up buildings –Older steel moment frames –Hillside homes –Mobile homes without bracing –Buildings on sites subject to fault displacement, landslides or liquefaction Key Project Tasks: Recommend Policy Directions •Advisory Group input and consultant analyses on options that should be considered in a program update –What and why –Who and how Timeline 2015 •October 15: Project kickoff meeting •November 24: Trial run of sidewalk survey •Today: Advisory Group kickoff meeting 2016 •January: Inventory complete •February: Loss estimates •March/April “Retreat”: Preliminary alternatives •May/June: Refine recommendations •Summer: City Staff/Committee/Council review •October: End of project Q&A: Clarification about Elements of the Project Plan State and Local Policy Context •Active area of policy innovation in California and elsewhere •Consensus on need for action •State laws give cities latitude to widen and strengthen their approaches •Palo Alto is “average” in terms of its current scope and requirements What are Other Cities Doing? •Programs generally address specific building types by structural features and/or use or critical functions •Programs also vary in: –Degree of emphasis on mandates and enforcement –Amount of time until requirements kick in –Technical definitions and standards –Types of assistance offered –Roles of community and consultant input Soft-Story Program Type Inventory Only Notify Only Mandatory Screening Mandatory Evaluation Mandatory Retrofit Jurisdiction Santa Clara County (2003) San Jose (2003) San Leandro (2006) Sebastopol (2011) Richmond (2012) Oakland (2009) San Francisco (2013) Berkeley (2010) Alameda (2011) (2014) (2015) (2014) Fremont (2005) Compiled by S. Rabinovici, 2015. Increasingly Stringent The Example of Bay Area Soft-Story Policies: Varied and Evolving •Identify, prioritize, ramp up •Different timelines based on “tiers” In Development: Hayward San Francisco’s Flagship Effort •CAPSS 5-year effort (over 12 years) •30-year implementation plan •URMs, soft-story, private schools, masonry chimney, façade, houses, neighborhood clusters and beyond •Resilience target focus: safety and recovery speed and strength The Disaster Cycle Response Short Term Recovery Long Term Recovery & Planning Mitigation Preparedness Incident •Neighborhood Emergency Response Team training (NERT) •Retrofit Ordinances •Transfer Tax Rebates •Triggers •Building Codes •Local Hazard Mitigation Plans •Alquist-Priolo Special Studies Zone Disclosure •Post-Event Reconstruction Standards •Building Occupancy Resumption Program (BORP) •Emergency Response Plans •Shelter-in-Place Protocols Coercion Spectrum Possible Community Goals and Priorities for Reducing Building Risks •Increase understanding of local risks and impacts •Increase building stock quality –Increase safety –Reduce economic losses –Limit disruption and speed recovery •Less need for services during and after events •Build back better Key Questions for the Advisory Group (Policy Questions Handout) •Many choices shape a program: –Inclusion & exclusion criteria –Requirements & standards –Pace and prioritization –Technical and financial assistance –Process transparency and public participation –Intensity of enforcement –Post-event measures Your Thoughts & Questions •Priority issues the Advisory Group should focus on •Community goals and priorities •Importance and level of community interest in updating the City’s approach •What’s not been brought up yet that’s important to you? [ 10 minute Stretch Break ] Advisory Group Approach •Scope of Advisory Group effort •Limited number of meetings, so they all have to be very efficient •Planned topics and timeline Advisory Group Process •Chair, co-chairs, or no chair? •Voting, polls, or consensus? •Distribution of information material: –Before meetings, at meeting, and/or after meetings? –How far in advance? •Website plans •Morning or afternoon meetings? Meeting Wrap-Up and Follow-Ups •Outcomes from today •Minutes •Date for next meeting –Options: Tu 1/19, Wed 1/20, Wed 1/27 •Meeting materials –Next agenda –Findings: •Preliminary Inventory results •Legislative and Local Program Best Practices report 1 City of Palo Alto Seismic Risk Management Program Topics for Advisory Group Process December 14, 2015 Broad Policy Priorities and Readiness to Act 1. What broad priorities should we be focusing on as a community in terms of seismic safety and disaster resilience in the local building stock? · One way to think about this is to consider resilience objectives, which can include preventing collapse, preventing loss of life, preventing injuries, helping families plan for sheltering-in-place after an event, preserving neighborhood character, minimizing economic losses, preserving the local economy and tax base, protecting businesses and helping them recover, or balancing earthquake mitigation efforts relative to other community resilience goals. 2. How important is it for the City of Palo Alto to more proactively address earthquake risks to local buildings than is currently being done? Rate from 1 (more important) to 10 (less important). 3. What is the level of community interest and support at this time for updating the City’s approach to managing earthquake risks? Rate from 1 (more important) to 10 (less important). 4. Is enough known about existing vulnerabilities in the building stock to proceed with developing specific policy and program proposals? (If not, what information is still needed?) 5. How swiftly should the City seek to act on these issues (scale of 1-slower to 10- faster)? Program Scope: Privately-Owned Buildings 6. Building Types: a. Should remaining unreinforced masonry buildings be included (i.e., those under 1,900 sf with 6 or fewer occupants)? b. Should wood frame soft-story buildings be included? c. Should older concrete buildings be included d. Should older tilt-up concrete buildings be included? e. Should older steel moment frame buildings be included? f. Should hillside homes be included? g. Should mobile homes without a supplemental earthquake bracing system be included? h. Should buildings on sites subject to fault displacement, landslides, or liquefaction be included? 2 i. What other types should be included (if any)? 7. Inclusion Criteria: a. Should age (year built) be a criterion? b. Should the number of occupants be a criterion? c. Should the current use or occupancy class be a criterion? d. Should certain combinations of criteria be organized to create “tiers” of structures that are treated differently with regard to such things as requirements, incentive eligibility, penalties, and/or timelines? 8. Exclusion / Exemption Criteria: a. Should properties owned or occupied by non-profit or community service oriented organizations (e.g., churches) be exempt? b. Should special policies be developed for historic or landmark properties? 9. Notification and Transparency: a. Should all included owners be notified at once at the beginning, or should notification occur in stages based on certain criteria? b. Should the addresses and compliance status of properties included in the program be proactively made public, for instance on a regularly updated city website? Program Scope: Publically-Owned Buildings 10. Should part of the program involve evaluating or strengthening City-owned structures, particularly those needed for critical services? Program Elements 11. Should Palo Alto’s seismic mitigation program emphasize voluntary initiatives, mandatory measures, or use a mix of these approaches? 12. Should the program include more stringent triggers for upgrading? 13. Should the program include a mandatory screening process? 14. Should the program include mandatory evaluations? 15. Should the program include mandatory retrofits? 16. Should the program include mandatory signage? 17. Should the program include mandatory notification of current and potential tenants or lease holders? 18. Should the program include placement of formal notice on title or deed? 19. Should the program provide protection from future regulatory action for some period of time following compliance? 20. Should enforcement include financial penalties, and if so, of what magnitude? 3 Rating Programs 21. Should Palo Alto have its publically-owned buildings rated, such as per new US Resiliency Council standards (1 to 5 stars for Safety, Damage and Recovery indices), or the University of California’s original system (Good, Fair, Poor, Very Poor), or FEMA P-154 (numeric score related to collapse potential)? 22. Should ratings be encouraged for private buildings? 23. Should ratings be required for certain building types? Retrofit Requirements and Standards 24. Should the program hire an external consultant to advise and develop retrofit standards or rely on existing approaches? 25. Should special guidelines or trainings be developed and offered for engineers and/or local contractors in terms of how to complete work that adheres to program requirements? Incentives and Handling of Costs 26. Should the program expedite processing and waive, or offer reduced permit fees, for projects involving retrofit work? 27. Should the program offer development bonuses for projects involving retrofit work completed that meets certain criteria? 28. Should the program offer waivers of policy requirements (e.g., parking requirements) for retrofit projects that meet certain criteria? 29. Should owners be limited in the amount and/or pace at which retrofit or other program compliance costs are passed on to tenants in the form of rent increases? Planning for Post-Event Reconstruction and Replacement 30. Should the program seek to develop proposals for post-event repair, rehabilitation, and retrofit requirements? 31. Should the City develop a Building Occupancy and Resumption Program, permitting individual owners to establish a relationship with an on-call structural engineer to perform post-earthquake evaluations of their buildings? 32. Should the City encourage or fund additional strong motion instrumentation in selected buildings and free-field sites? 33. Should the City increase ATC-20 training of its staff? 34. Should the City link its inventory database to post-event planning and data collection? 4 Beyond Buildings: Readiness, Relationships, Response, Recovery, and Research 35. Should the program include a significant public education and awareness-building component? 36. Should the program include an effort to build the capacity of local organizations to understand and respond to earthquake threats? 37. Should the program include efforts to build partnerships with and/or policies related to local schools and universities—public, private, or both? 38. Should the program include efforts to build partnerships with local (small to large) businesses and employers—public, private, or all sectors? 39. Should the updated program seek to develop and implement policy strategies to address nonstructural aspects of seismic risk, such as damage to contents, building re-occupancy, business resumption and retention, or shelter-in-place capacity? 40. Should the City adopt a policy to collect voluntarily or mandatory information at time of building permit that identifies and classifies retrofit projects for use in future evaluation of retrofit technologies and approaches? 41. Should the City investigate methods for increasing the structural requirements for cell phone towers, such as increasing the Importance Factor used in seismic design to a value of 1.5? 42. Should the City investigate approaches for understanding and addressing threats to basic utilities such as water and power? 43. Should the City consider developing requirements for private-school buildings? 44. Should the City develop a façade maintenance ordinance? 45. Should the City develop a program for identifying post-earthquake shelter facilities? Other Questions 46. What other issues and questions not on the list above should be considered? Seismic Advisory Group Meeting #2 January 27th, 2016 2-4pm MEETING MINUTES – SEISMIC RISK MANAGEMENT ADVISORY GROUP Attendance By: Peter Pirnejad (PP), Development Services Director COPA George Hoyt (GH), Chief Building Official COPA James Henrikson (JH), Fire Marshal COPA Bud Starmer (Bud S), Building Inspection Supervisor COPA Nathan Rainey (NR), OES Coordinator COPA Jeremy Dennis (JD) Planning Manager COPA Blake Salzman (Blake S), Contract Plans Examiner COPA Bret Lizundia (BL), Principal, Rutherford+Chekene (R+C) Sharyl Rabinovici (SR), sub consultant to R+C Ahmad Wani, Community Al Dorsky, Community Anil Babbar, Tenants Annette Glanckopf, Community Chris Rojahn, Engineers Dana Brechwald (DB), Policy Doug Hohbach, Engineers Judy Kleinberg (JK), Business Interests Ken Hayes, Architects Teresa Marks, Community Tim Steele, Developers Tom Holzer, Policy City Staff Unable to Attend: Elena Lee, Senior Planner COPA Hung Nguyen, Project Engineer COPA Minutes Prepared By: Blake Salzman, Contract Plans Examiner ITEMS DISCUSSION Introduction General:  Introduction by GH: The focus of this meeting is to present information developed since the last meeting. The Advisory Group will be given an update on information posted to the Advisory Group webpage, recent activities and what items are coming up that the advisory group should be aware of. Goals for Meeting:  BL reviewed the meeting agenda with the group. Goals for the meeting are to review the project progress, re-review and reiterate project goals and the role of the Advisory Group, clarify questions 1 Seismic Risk Management Project | City of Palo Alto Seismic Advisory Group Meeting #2 January 27th, 2016 2-4pm MEETING MINUTES – SEISMIC RISK MANAGEMENT ADVISORY GROUP regarding Palo Alto’s seismic hazard ordinance requirements, present information from the legislative and local government best practices reports, discuss inventory findings and plans for the upcoming sidewalk surveys, and discuss the timing for the next Advisory Group meeting. • GH will walk through the COPA website, and instruct the group on how to find key documents related to the Advisory Group and the project in whole. The website address is: http://www.cityofpaloalto.org/gov/depts/ds/srmag.asp • Have an open discussion on whether or not anyone in the group has any missing best practices that they think should be included in the project. • Discuss some of the details regarding the inventory and loss estimate tasks and review the intended outcome. • Have a clear picture of the purpose of the Advisory Group. PowerPoint Presentation: A copy of the presentation slides shown during the meeting will be posted on the Advisory Group webpage. Review of Minutes:  The previous meeting minutes were reviewed, and the group had no additional comments regarding these minutes. Introduction of Group Members from COPA:  GH introduced James Henrikson, Fire Marshal, and Jeremy Dennis, Planning Manager, to the group as they were unable to attend the previous Advisory Group meeting. Advisory Group Webpage  GH led the group in a demonstration of how the Advisory Group webpage works. The webpage can be found here: http://www.cityofpaloalto.org/gov/depts/ds/srmag.asp  The files on the webpage create a timeline of documents that have been created in relation to this project, with the newest documents shown at the top. The history of documents was discussed as well as the intent for each step.  At the last meeting, the group asked for more information about current COPA regulations related to the Seismic Hazards Identification program. The Ordinance can be found under the link 2 Seismic Risk Management Project | City of Palo Alto Seismic Advisory Group Meeting #2 January 27th, 2016 2-4pm MEETING MINUTES – SEISMIC RISK MANAGEMENT ADVISORY GROUP “CPAMC 16.42 Seismic Hazards Identification Program”. Information about incentives handled by the planning department can also be found on the webpage.  During the discussion regarding the review of the Advisory Group Webpage, the topic of current regulations was briefly discussed. Questions regarding whether or not the current incentives given by the municipal code applied to only the CD district was asked by the group. It was clarified that the floor area bonus was the only aspect that was applied to the “CD District.”  The Floor Area Bonus program was discussed, including the geographic limits in the City where that incentive can be used.AG member Ken Hayes noted that the program extended to the areas between Forest and Addison as well. Program Timeline  The timeline and purpose of the Advisory Group was discussed.  A general timeline for the project as well as the Advisory Group meetings was shared by BL. The loss estimate without retrofits to the building stock is expected to take place by the next meeting, and loss estimate with retrofit to selected building types will take place following Advisory Group Meeting #3.  Presentation of findings to the Policy and Services Committee is currently planned between Advisory Group Meetings 5 and 6.  The project is expected to end in October, with the recommendations to Council taking place in the summer.  PP wanted to clarify that potential incentives would not be decided on as part of this program, but rather recommendations would be made with how to move forward after the end of this project. BL confirmed that incentives may be considered during the advisory group meetings and reflected in the recommendations made on the issues and project features that the Advisory Group and project team believe are beneficial for the City to consider. SR stated that a forthcoming Best Practices report would cover types of incentives that other cities have used. Best Practices  SR began the discussion about state legislation and local programs 3 Seismic Risk Management Project | City of Palo Alto Seismic Advisory Group Meeting #2 January 27th, 2016 2-4pm MEETING MINUTES – SEISMIC RISK MANAGEMENT ADVISORY GROUP by describing some of the key entities that govern earthquake mitigation plans and policies in California. She also reviewed some of the major pieces of legislation that COPA is obliged to comply with and that govern how mitigation work can be done. .SR found that existing laws approach seismic risk management in different ways, including: • Building code provisions; • Use-specific, such as schools and hospitals; • Building type specific requirements, the most prominent of which is the state’s unreinforced masonry law; • Planning and zoning rules; and, • Financing and taxation policies. For example, property taxes cannot be increased because of added value due to a seismic upgrade.  SR then presented a framework for looking at similarities and differences between local programs. Cities can be categorized as Inactive, Learning, or Leading depending on how many policy measures they have in place, how many building types are addressed, and how successful those programs have been. • Leading cities tend to have mandates in place, devote more resources to managing and enforcing their programs, and address more than one building type. • Learner cities are investing in information gathering, risk assessment, and community engagement to lay the groundwork for future policy efforts.  PP asked where Palo Alto currently falls on the Learning/Leading scale. SR replied that Palo Alto is a Leader for URMs and is now a Learner with regards to other building types and through this project is being set up well to become a Leading city.  PP asked how many other cities are using a Floor Area Ratio (FAR) bonus in their seismic risk management programs and what the frequency of retrofitting in those cities has been compared with the time since the original passage of the ordinance. SR said that FAR programs for seismic work are rare and there is no effectiveness data available. The Planning Department may have data available that could be used to analyze its effectiveness in Palo Alto.  The group questioned how Palo Alto’s voluntary system or other 4 Seismic Risk Management Project | City of Palo Alto Seismic Advisory Group Meeting #2 January 27th, 2016 2-4pm MEETING MINUTES – SEISMIC RISK MANAGEMENT ADVISORY GROUP development incentives would work during future time periods experiencing a less robust economy. This should be considered for the long-term success of the project.  DB brought up the concern that she has found that incentive- based programs tend to reward those that would complete the project regardless of the incentive, but projects that are more financially challenged have difficulty regardless of the incentive. She also noted that it is important to have phased approaches to reduce difficulties such as owners arranging financing or tenant displacement.  JK asked how can program effectiveness be measured and what has been the experience with displaced residents during retrofitting. SR stated that a few cities have data but most information we have about impacts on owners and tenants are anecdotal. Inventory  BL discussed the amount of structures that will be a part of the study based on detailed review work R+C has been conducting.  Sidewalk surveys are expected to start on February 4th with Palo Alto Building and Fire staff and on February 11th with Stanford structural engineering graduate students.  The group was shown the model of seismic events that would be used for the purpose of determining losses.  BL explained how losses would be defined. The loss will be calculated as the percentage of damage multiplied by the replacement cost of the building. He noted that deaths and casualties are not included in the scope of the loss estimate.  BL noted that the Hazus methodology has default values for replacement costs based on occupancy type and geographic location using RS Means values. He noted that the values are lower than typical construction costs on the Peninsula.  The Advisory Group concurred that the replacement cost values presented are noticeably lower than those in the current market. There was general interest in investigating revised values specific to Palo Alto, perhaps by using a multiplier on the default values. 5 Seismic Risk Management Project | City of Palo Alto Seismic Advisory Group Meeting #2 January 27th, 2016 2-4pm MEETING MINUTES – SEISMIC RISK MANAGEMENT ADVISORY GROUP This may be addressed using a Technical Advisory Committee. Several Advisory Group members expressed interest in being part of such a committee. It was agreed that a future email would be sent to the group to organize a side discussion of this specific issue. Action Items  The inventory including loss estimate without retrofit is expected to be completed by the next AG meeting.  The legislative review and local government best practice reports will be distributed via the webpage prior to the next AG meeting.  The group is open to discussion or research regarding the cost of replacement construction to help in the loss estimates.  Timing and agenda for the next meeting was discussed and the goal is to have the meeting mid-March, mid-week, and in the afternoon. . 6 Seismic Risk Management Project | City of Palo Alto City of Palo Alto Seismic Risk Management Program Advisory Group Meeting #2 January 27, 2016 Agenda and Objectives •Review project and Advisory Group (AG) status •Review project goals and AG role •What are other communities doing? •Update on what we’ve learned about Palo Alto’s building stock •Next steps, including next meeting Input and Intended Outcomes •Input from the Advisory Group –Is the website helpful? –Are there other program and policy options we haven’t mentioned? –Whether the Advisory Group or a Technical Advisory Group wants to weigh in on the replacement costs used in the loss estimates •Intended Outcomes –You have a clearer picture of the Advisory Group’s purpose and scope and key milestones on the project timeline –You are better informed about what other communities are doing and what policy options we will be considering moving forward –You have a better understanding of the building stock that we will be studying and about the loss estimates we will be performing Project and AG Process Status •Review of minutes from 12/16/15 AG1 meeting •Review of document availability on website •Re-cap of current Palo Alto seismic ordinance Document Availability •Seismic Risk Management Program Website: http://www.cityofpaloalto.org/gov/depts/ds/srmag.asp •Currently Includes –Contract scope of work –Key City documents: 12/9/14 Council minutes and Policy and Services memo –AG agendas, minutes, and PowerPoint presentations –Policy questions to consider •Coming –Consultant reports, results of project tasks, project timeline Re-Cap of Current Ordinance Category I (URM over 1900 sf & 6 occupants) Category II (Before 1935 and over 100 occupants) Category III (Before 8/1/76 and over 300 occupants) All Categories Total 47 19 23 89 Retrofit 22 13 5 40 Demolished 14 2 5 21 Demo Proposed 0 0 4 4 Exempt 1 0 0 1 No change 10 4 9 23 Source:12/9/14 City of Palo Alto Policy and Services Committee staff report. Status as of September 2014. Re-Cap of Current Ordinance •Original ordinance –Palo Alto Municipal Code –Chapter 16.42 Seismic Hazards Identification Program (passed 1986) –Applies to buildings in the three categories anywhere in the city –Only structural system explicitly covered is URM –Engineer report is mandatory; doing the work is voluntary. Reports were due long ago (1990). •Zoning ordinance –Palo Alto Municipal Code –Chapter 18.18.070 Floor Area Bonuses –Covers buildings in Commercial Downtown (CD) District Re-Cap of Current Ordinance •CD District is split into –CD-C Commercial –CD-S Service –CD-N Neighborhood •Zoning benefits if: –CD-C and Floor Area Ratio ≤ 3.0 or –CD-N/CD-S and FAR ≤ 2.0 •If building is not historic: –Retrofit permits sf increase of greater of 25% or 2500 sf •If building is historic: –Retrofit permits sf increase of greater of 50% or 5000 sf •Many other specific rules AG1 AG2 AG3 AG6 Project End Rec’s to Council -Introductions -Project overview -Policy questions 12/16/15 1/27/16 Survey Loss Estimate w/o Retrofit Purpose of Advisory Group To review and discuss implications of the project's technical findings and provide input about community concerns, priorities, and preferences. Before Meeting •AG1 minutes •AG2 agenda •AG website At Meeting •Recap Palo Alto policies •State legislative review •Local policy review •Update on inventory and loss estimate efforts -Inventory results -Loss estimate results -Preliminary policy discussion March AG4 April June Oct AG5 May -Final loss estimates -Detailed policy discussion -Finalize rec’s -Draft rec’s Policy & Services Committee Summer Loss Estimate w/ Retrofit What are Other Communities Doing? •Task 2 report on state legislation •Task 3 report on local programs Overview: State Level Policy Context •Numerous existing laws –Building-specific –Planning related –Financing –URM buildings •Current developments –Some leadership –Recent failed proposals –“PACE” funding Building-Specific Requirements •CODES –Code minimums for new construction –Standards for rehabilitation, including historic structures •USES –Hospitals, public schools, and essential facilities •TYPES –Mandated unreinforced masonry programming Planning Requirements •General Plan Seismic “Safety” Element •Alquist-Priolo Earthquake Fault Zones •Real estate disclosure and education requirements Financing and Taxation •Fundraising authority highlights –General obligation bonds –Mello-Roos Districting (?) –PACE loans •Provisions for handling of property taxes for the costs of needed seismic retrofit State Unreinforced Masonry Law (SB547, 1986) •URMs can kill •All hazardous jurisdictions must have program •By 2006: –98% of cities had complied –70% retrofitted or demolished Photo: EERI, 1989. Agency and Program Highlights •Building Standards Commission –Administers triennial code updates •Seismic Safety Commission (CSSC) –Statewide planning and coordination •California Earthquake Authority (CEA) –Small residential insurance and grants •Concrete Coalition –Volunteer-created inventory effort Federal Mandates & Opportunities •Disaster Management Act of 2000 –Requires Local Hazard Mitigation Plan –Palo Alto is revising for 2017 renewal •FEMA Hazard Mitigation Grant Program –Open window for Notices of Interest letters ends 1/29/16 State Laws Give Cities Broad Authority •Codes: cities can set adoption pace, stringency, trigger terms, etc. •URMs: cities can choose from notification to voluntary to mandatory •Retrofit requirements can be less stringent than contemporary code when justified by cost-benefit ratio A Spectrum of Broad Policy Options 1.Maintain the status quo 2.Expand current voluntary program to address additional building types or uses 3.Make current voluntary URM program mandatory 4.Create new mandatory program that address one or more additional building types or uses 5.Combination of alternatives 2, 3, and 4 6.Other alternatives Overview: Local Program Review •Framework for analyzing what cities are doing: –Inactive, Learning, and Leading Cities •Leading cities are differentiated by: –Focused vs. comprehensive in nature and effectiveness –Policy development trajectory –Program design distinctions What are Other Cities Doing? California: •482 cities total •283 (59%) in high EQ hazard areas MO T I V A T I O N IMPLEMENTATION LEADING LEARNING INACTIVE Concept adapted from May and Birkland, 1994. What Distinguishes Earthquake Program “Leadership”? •Some form of mandated action •Higher motivation, commitment and capacity •Higher implementation effectiveness URM Progress Statewide (2006) Effectiveness: 3x more buildings retrofitted or demolished in Leading cities LEADING 52% LEARNING 33% INACTIVE 15% Data Source: CSSC, 2006 (Table 3). = Mandatory retrofit = Voluntary retrofit = Notification only or no program California Cities by Strength of URM Program Type and Effectiveness Soft-Story Progress Statewide Effectiveness: In Leading cities, 10-30% have been retrofitted LEADING 2% LEARNING 3% INACTIVE 95% California Cities by Strength of Soft-Story Efforts Source: S. Rabinovici, unpublished data. Inventory Only Notify Only Voluntary Retrofit Mandatory Screening Mandatory Evaluation Mandatory Retrofit Santa Clara County San Jose San Leandro Richmond Sebastopol Oakland San Francisco Berkeley Alameda Fremont Compiled by S. Rabinovici, 2015. Increasing Requirements Bay Area Learners and Leaders in Soft-Story Programs In Development: Hayward LEARNING LEADING What Makes “Comprehensive Leadership” Different? LEADERS FOCUSED LEADERS COMPREHENSIVE LEADERS MO T I V A T I O N IMPLEMENTATION •Inventories of other building types •Ordinances for other building types •Stricter requirements •Quicker timetables •More resources devoted •More enforcement •% retrofits completed •Larger and wider variety of incentives •In-depth plans for further risk reduction efforts •Mandates for one building type (URM) and/or high implementation success Other Ways to Be Comprehensive: Link to Other Disaster Cycle Programs Response Short Term Recovery Long Term Recovery & Planning Mitigation Preparedness Incident •Neighborhood Emergency Response Team Training (NERT) •Public Education •Retrofit Ordinances •Transfer Tax Rebates, Loans, or Grants •Triggers •Building Code and Standards Adoption •Local Hazard Mitigation Plans •Real Estate Disclosure •Post-Event Reconstruction Standards •Building Occupancy Resumption Program (BORP) •Emergency Response Plans •Shelter-in-Place Protocols Other Ways to Be Comprehensive: Link to Overall Community Resilience •Sustained effort and integration across threats and resilience goals •High capacity, commitment, capacity, community involvement, and partnerships Source: Torrens Resilience Institute, 2012. Community Connectedness Available Resources RESILIENCE Risk and Vulnerability Planning and Procedures Example Resilience Leaders •San Francisco, CA •Los Angeles, CA •Oakland, CA Volunteer-based and paid partnerships: ABAG, SPUR, USGS, ATC, EERI, SEAONC… Strong and committed local leadership All Rockefeller 100 Resilient Cities Profiles of Local Seismic Mitigation Efforts COMPREHENSIVE-LEADING •Berkeley, CA –Mandatory Soft-Story Retrofit plus robust Disaster Cycle and Resilience Programs FOCUSED-LEADING •Fremont, CA –Mandatory Soft-Story Retrofit •Alameda, CA –Mandatory Soft-Story Evaluation LEARNING •Hayward, CA –Developing Soft-Story Approach •Albany, CA –Soft-Story Inventory Enforce and Maintain Policy Development Process ImplementAdopt[Develop Ordinance] Develop StrategyInventoryAssemble Team Initiate Discussion Timeline LEARNING LEADING Variations in Mitigation Approaches Among Leading Cities •Inclusion, exclusion, and prioritization criteria –Inventory method –Age, occupancy, height, # of units •Compliance timelines by tiers •Types of incentives and assistance offered •Cost-sharing arrangements •Community and technical input approaches City of Berkeley, CA --2005 Number of Soft-Story Buildings Building Inventory Notification of Tenants Mandated Screening or Engineering Report Mandated Retrofit 321 X X X X Accepted Retrofit Standards Tiers Timeframe Evaluation Permit Completed ASCE 41-06 ASCE 41-06 FEMA P-807 Chapter A4 of 2012 IEBC Phase 1 Evaluation findings determine inclusion in Phase 2 mandated retrofit program 2 years (under previous soft story ordinance) 2 years 4 years Soft Story Criteria Incentives Other Considerations Wood-frame residential buildings with five or more residential units permitted for construction prior to 1978 Tenant pass through of 100% over 15 years Can apply for a hardship extension of 1- year Must install automatic gas shut-off valves Acceleration of deadlines apply under certain circumstances Source: Dana Brechwald, ABAG, unpublished report, 2015. City of Alameda, CA --2009 Number of Soft-Story Buildings Building Inventory Notification of Tenants Mandated Screening or Engineering Report Mandated Retrofit 70 X X X Accepted Retrofit Standards Priority Tiers Timeframe Evaluation Permit Completed IEBC Chapter A4 of 2006 N/A 1.5 years N/A N/A Soft Story Criteria Incentives Other Considerations Wood-frame multi-unit residential buildings with five or more dwelling units permitted for construction prior to December 17, 1985 and where the ground floor portion contains parking or other similar open floor space and have one or more levels above the ground floor Engineering report filing fees reductions based on time until report is submitted: 100% reduction if within 3 months 75% reduction if within 6 months 50% reduction within 9 months 25% reduction within 12 months Must install an earthquake-activated gas shutoff valve within 60 days of notification of inclusion in the inventory Reduction in parking requirements for existing facilities Retrofitting removes buildings from the inventory for a period of 15 years after retrofit Source: Dana Brechwald, ABAG, unpublished report, 2015. City of Fremont, CA --2002 Number of buildings Building Inventory Notification of tenants Mandated Screening or Engineering Report Mandated Retrofit 22 X X X Accepted Retrofit Standards Tiers Timeframe Evaluation Permit Completed City of Fremont Building Code sections 7-10302 and 7-10304 Group 1: 10 units or more than two stories N/A 2 years 4 years Group II: 10 or less units and fewer than three stories high 2.5 years 5 years Soft Story Criteria Incentives Other Considerations Wood frame, multi-unit (3 or more) residential buildings constructed before January 1, 1978 Waived plan check and building permit fees for the seismic retrofit work if done within the appropriate timeframe Condo conversions must comply Making Things Public: Forums, Lists, Signs, Tenants, and Notices Other Kinds of Comprehensive: More Types, Uses, and Features •San Francisco, CA –CAPSS led into 30 year ESIP implementation plan –Adopted: soft-story >4 units, mandatory evaluations for private schools –In progress: façade ordinance –Collaborations: SPUR, ATC, SEONC, 100RC… –Preparedness: shelter-in-place, 72hours.org –Planned: programs for smaller residential Other Kinds of Comprehensive: Critical Infrastructure and Systems •Los Angeles, CA –2013 Mayoral leadership and Technical Advisory Group –Resilient by Design report and plan: •Buildings •Telecomm •Water –Adopted: soft-story >4 units, voluntary building rating system program –Collaborations: USGS, SEAOC, CalOES, 100RC… Comprehensive Programs Can Still Falter •Santa Monica, CA –1994 mandatory retrofit ordinance for steel office towers, older concrete buildings and wood multi-story apartment houses −City leadership revived inventory efforts that stagnated for 20 years by funding a 2014 study (No notifications, timeline or enforcement) −In progress: figuring out how to proceed based on their findings −Collaborations: SEAOC, ConcreteCoalition… What Kind of Approach is Right for Palo Alto? •Unique policy background •Inventory update •Loss estimation and risk assessment •Advisory Group engagement •Evaluate alternatives •Recommend directions Update on Building Vulnerabilities •Building inventory update •Sidewalk survey update •Loss estimate update Building Inventory •Significant effort reviewing, processing, combining digital tax assessor files, GIS files, and SJSU/Palo Alto Fire Department survey of soft-story wood frame buildings •Converted tax parcels to buildings •Summarized certain aspects of inventory •Begun planning for sidewalk survey using inventory results Parcels in Scope •Total Palo Alto parcels: 21,187 –1 and 2 family: 15,198 –Remaining parcels: 5,989 •3 or more unit residential parcels: 3,630 –Actual distinct buildings: 1,324 •Other occupancy types: 2,369 –Removed 961 designated as Possessory Interest –Remaining buildings: 1,408 •Total in Study Group: 1,324 + 1,408 = 2,732 Study Group Occupancy Types 44% 36% 3% 8% 9% Residential 3+ Retail Public Industrial & Manufacturing Other Soft Story Wood Frame Multi-Family Residential: 94 buildings Study Group Year Built 0 20 40 60 80 100 120 18 8 0 18 9 6 19 0 2 19 0 8 19 1 4 19 2 0 19 2 5 19 3 0 19 3 6 19 4 1 19 4 8 19 5 3 19 5 8 19 6 3 19 6 8 19 7 3 19 7 8 19 8 3 19 8 8 19 9 3 19 9 8 20 0 3 20 0 8 20 1 3 Nu m b e r B u i l t Year Built Known: 2435 Unknown:297 Total: 2732 Study Group Number of Stories 0 200 400 600 800 1000 1200 1 2 3 4 5 - 10 6 - 20 Nu m b e r o f B u i l d i n g s Stories Known: 2293 Unknown: 439 Total:2732 Study Group Area of Building 0 100 200 300 400 500 600 700 Co u n t o f B u i l d i n g s Area (sf) Known: 2397 Unknown:335 Total: 2732 Study Group Building Materials Quality Class A:Structural Steel Framing 31 B:Reinforce Concrete Columns and Beams 11 C:Masonry-type Exterior Walls 651 D:Wood Framing 1451 S:Specialized/not in above categories 105 Unknown 483 Building Material vs. Model Building Type •A. Structural Steel Framing –S1: Steel moment-resisting frame –S2: Steel braced frame –S3: Light metal building –S4: Steel frames with cast-in-place concrete shear walls –S5: Steel frames with unreinforced masonry infill walls Key Parameters for Input to Loss Estimates Legend for Plots Color Indicates 0-2 Parameters Known 3-4 Parameters Known 5-6 Parameters Known Key Parameters Known Unknown Total LAT/LONG 2732 0 2732 Year Built 2435 297 2732 Stories 2293 439 2732 Building Area 2397 335 2732 Occupancy 2207 525 2732 Model Building Type 0 2732 2732 Quality Class 2249 483 2732 Building Value 0 2732 2732 Study Group Building Locations N Downtown N California Avenue/ Page Mill Road Area N Soft-Story Wood Frame Multi-Family Residential Buildings N Sidewalk Survey Sidewalk Survey •February 4 with building/fire department •February 11with Stanford structural engineering graduate students/professors •Post-processing and checking of uploaded surveys •Follow-up survey quality assurance checks Survey Clusters N Loss Estimates •Two scenarios •Initial run: without new retrofit •Develop conceptual retrofits with cost estimates •Second run: with new retrofit •Dollar losses and percent damaged –By building type and location –With retrofit and without Earthquake Scenarios M7.9 M7.2 City Hall 0.60g City Hall 0.56g Earthquake Scenarios M6.9 M6.7 City Hall 0.56g City Hall 0.48g Loss Estimates Will Provide •Building types expected to have the greatest aggregate damage –Largest risk of lost units –Largest cost of repair –Geographic concentrations of largest loss •Achievable reduction in losses from retrofit of selected buildings •Effectiveness of past retrofit work in current context Issue: Replacement Cost •Loss = Cost of Damage / Replacement Cost •Example: $100,000 loss in a building that would cost $2,000,000 to replace Loss = $100,000 / $2,000,000 = 5% Issue: Replacement Cost •Hazus program has default replacement costs in $/square foot •Example: 10,000 sf building with a replacement cost of $200/sf Replacement cost = 10,000 sf x $200/sf Replacement cost = $2,000,000 Issue: Replacement Cost ($/sf) •Hazus default full replacement cost models are based on RS Means (2014) •Location factors for Palo Alto: Residential = 15%, Commercial = 11% •Is use of the default values acceptable? Hazus Occupancy Class Definition Average Palo Alto Cost per Square Foot RES3A Multi Family Dwelling –duplex $130.75 RES3B Multi Family Dwelling –triplex/quad $114.94 RES3C Multi Family Dwelling –5-9 units $206.41 RES3D Multi Family Dwelling –10-19 units $194.12 RES3E Multi Family Dwelling –20-49 units $212.26 RES3F Multi Family Dwelling –50+ units $199.90 RES4 Temp. Lodging $217.83 RES5 Institutional Dormitory $234.44 RES6 Nursing Home $238.07 COM1 Retail Trade $121.66 COM2 Wholesale Trade $118.13 COM3 Personal and Repair Services $143.47 COM4 Professional/ Technical/Business Service $194.52 COM5 Banks $281.88 COM6 Hospital $372.59 COM7 Medical Office/Clinic $267.85 COM8 Entertainment & Recreation $248.61 COM9 Theaters $186.45 COM10 Parking $84.59 IND1 Heavy $144.71 IND2 Light $118.13 IND3 Food/Drugs/Chemicals $229.48 IND4 Metals/Minerals Processing $229.48 IND5 High Technology $229.48 IND6 Construction $118.13 REL1 Church $118.13 AGR1 Agriculture $199.08 GOV1 General Services $152.63 GOV2 Emergency Response $259.52 EDU1 Schools/Libraries $193.00 EDU2 Colleges/Universities $214.91 Meeting Wrap-Up and Follow-Ups •Outcomes from today •What will be added to the website •Next steps –Survey and processing –Loss estimate •Date for next meeting in March –Options: x, y, z •Scope of next meeting –Review inventory findings –Review loss estimate results Seismic Advisory Group Meeting #3 March 17th, 2016 2-4pm Mitchell Park Library MEETING MINUTES – SEISMIC RISK MANAGEMENT ADVISORY GROUP 1 Seismic Risk Management Project | City of Palo Alto Attendance By: Peter Pirnejad (PP), Development Services Director COPA George Hoyt (GH), Chief Building Official COPA James Henrikson (JH), Fire Marshal COPA Nathan Rainey (NR), OES Coordinator COPA Evon Ballash (EB) Assistant Building Official COPA Blake Salzman (Blake S), Contract Plans Examiner COPA Elena Lee, Senior Planner COPA Bret Lizundia (BL), Principal, Rutherford + Chekene (R+C) Sharyl Rabinovici (SR), sub consultant to R+C Al Dorsky, Community Anil Babbar, Tenants Annette Glanckopf, Community Dana Brechwald (DB), Policy Doug Hohbach, Engineers Jessica Epstein, Policy Ken Hayes, Architects Georgina Mascarenhas, Community Roxy Rapp, Developers Chris Rojahn, Engineers Tim Steele, Developers Tom Holzer, Policy Minutes Prepared By: Blake Salzman, Contract Plans Examiner ITEMS DISCUSSION Introduction General:  Introduction by GH: Meeting minutes for Seismic Advisory Group Meeting on 01/27/16 were approved by group. George provided a quick update of the project over a busy month and a half. Sidewalk surveys have been completed, the resulting information has been quality controlled, then entered into FEMA’s Hazus program, and loss estimates have been performed.  The project timeline was re-reviewed based on the current progress. The timeline is available on the Seismic Advisory Group webpage. Replacement Cost Methodology  Based on the last meeting’s discussion of the replacement cost in which the default values used in Hazus were reviewed, it was clear that the replacement cost values should be revised. The cost needs to be updated for inflation and increased based on location. Seismic Advisory Group Meeting #3 March 17th, 2016 2-4pm Mitchell Park Library MEETING MINUTES – SEISMIC RISK MANAGEMENT ADVISORY GROUP 2 Seismic Risk Management Project | City of Palo Alto It includes the construction bid costs, plus soft costs for demolition, third party inspection, permit fees, utility fees, and design fees. Costs that are not included are abatement, project management costs, financing, legal fees, accessibility compliance costs, etc.  The Technical Advisory Committee (TAC) related to replacement cost methodology held a conference call on 3/7/16 to review proposed changes to increased replacement values. The increased costs were still deemed low. Agreement was reached on targets for the revised values. The updated values prepared by R+C were distributed and no exceptions were taken. R+C’s sub consultant then made minor adjustments upward for some of the non-targeted occupancies to provide an appropriate ratio to the other costs. These final costs were used in the loss estimates and were shown in the meeting presentation.  Occupancies focused on by the TAC were multi-family residential, offices for professional services, high technology, medical office, and retail. The costs used were intended to represent average values appropriate for all of Palos Alto, including both the downtown areas and those in the southern part of the City. Inventory  BL discussed the sidewalk surveys and collection of data to be used for the loss estimates.  The inventory started from tax assessor files, GIS files, Google Earth, the 1980s building survey by COPA, and the 12/9/14 COPA Policy and Services memo on seismic compliance status that was the genesis of this program. Single family and two-family dwellings are not included in the scope of the inventory. Stanford University was also not included in the scope of the inventory.  The bulk of the work was a field sidewalk survey using the app created for documenting visual assessments, with extensive quality assurance, and resurveying as necessary. In terms of overall scope, 2645 buildings were included in the study. Loss Estimate  BL discussed the overall loss estimates based on the entire study group. Estimates were based on a M7.9 and a M6.7 seismic event. Both events were calculated with retrofit and without retrofit. The total replacement value of the buildings is $23 billion, and total Seismic Advisory Group Meeting #3 March 17th, 2016 2-4pm Mitchell Park Library MEETING MINUTES – SEISMIC RISK MANAGEMENT ADVISORY GROUP 3 Seismic Risk Management Project | City of Palo Alto contents replacement value within those buildings is $24 billion.  The largest group of buildings of the inventory is wood frame small residential buildings. The greatest value of buildings comes from wood frame commercial and industrial. There is a total of 9 un- retrofitted URM bearing wall buildings in the study. There is also a surprising amount of tilt up concrete structures.  The cost of building replacement by occupancy type was presented. The occupancy with the largest number of buildings and most expensive aggregate total value is professional and technical office buildings.  The group reviewed the age of the study group buildings. The largest group in the study was built between the first seismic code in Palo Alto in 1926 and the SEAOC bluebook used in the 1961 UBC. The oldest buildings (pre 1927) had the largest average building damage ratio. Steel moment built pre 1927 had an average building damage ratio of 44%,compared to 4% for those built after code changes following the 1994 Northridge Earthquake.  The loss estimate accounts for features such as year built, square footage, occupancy, design level, retrofit status, soft story status, height, and model building type.  The estimated building damage in a M7.9 earthquake is $1.9 billion, and it is $900 million for the M6.7 event. The number of buildings with a damage ratio greater than 20% is estimated at 227 in a M7.9 event, but only 19 in a M6.7 event.  The three-year average in boom development times for Palo Alto is $400 million in total construction. The total repair of $1.9 billion in damage would take at least 5 years based on the boom time average of $400 million if no other work were done. Actual repair would likely take much longer.  The structural systems with the highest building damage ratios are steel frame with masonry infill, URM bearing wall, and concrete frame with masonry infill. The systems with the largest aggregate damage in dollar losses are concrete shear wall, concrete tilt up and wood frame commercial and industrial. Seismic Advisory Group Meeting #3 March 17th, 2016 2-4pm Mitchell Park Library MEETING MINUTES – SEISMIC RISK MANAGEMENT ADVISORY GROUP 4 Seismic Risk Management Project | City of Palo Alto Implications for Policy Options  BL discussed the implications of the loss estimate and how it could effect the policy options for Palo Alto moving forward.  The estimated loss in a major event and potential reduction from retrofitting are significant. For example, retrofitted URM buildings had an average building damage of 4% compared to 29% for non- retrofitted.  Addressing building types with the largest aggregate dollar losses (rather than simply the highest damage ratios) will lead to the greatest reduction in losses. These include soft story wood frame buildings, older concrete buildings, older tilt up buildings, and older steel moment frame buildings.  Soft story deficiencies significantly increase the percentage of building with large loss ratios and approximately double the average damage ratio. Best Practices  SR reviewed policy options for Palo Alto based on the assessment of other local models.  Programs were broken down by targeted building types, requirements, priority tiers, timelines, and incentives. Palo Alto’s current program targets a mix of building criteria (structural system and occupant load). Floor area ratio bonus incentives are available in downtown locations  Sunshine measures are ensuring publicity and knowledge of seismic risks. This is not taken full advantage of in the current system.  Palo Alto’s current program relies on voluntary action and planning incentives such as the floor area bonus. The options for addressing the remaining properties are to mandate evaluation, retrofit, or increase voluntary program.  URM programs are required to report to the state, so and published reports on effectiveness (defined as retrofitting or demolishing) are available. Soft story buildings have been a focus Seismic Advisory Group Meeting #3 March 17th, 2016 2-4pm Mitchell Park Library MEETING MINUTES – SEISMIC RISK MANAGEMENT ADVISORY GROUP 5 Seismic Risk Management Project | City of Palo Alto for the City. 25% of soft story buildings in Berkeley that were mandated to perform an evaluation performed a retrofit within 2 years. Action Items  What is the right policy package for Palo Alto? This will be one of the final tasks of the advisory group.  Scope of the next Advisory Group meeting will include review loss estimate of retrofitted buildings and continued policy option discussion. If the group is available for a 3-hour meeting, it would be ideal for the amount of information that needs to be covered during the next meeting.  PP wants to schedule a meeting with the planning department to discuss planning incentives and to determine if those will be pursued.  The agenda for the next Advisory Group meeting will include information on people/units affected by soft-story, loss estimation with retrofit and retrofit costs, reactions from AG to loss estimates and current program effectiveness/intensity. The group also wanted to discuss any factors given for time of occupancy in buildings. City of Palo Alto Seismic Risk Management Program Advisory Group Meeting #3 March 17, 2016 AG1 AG2 AG3 AG6 Project End Rec’s to Council - Introductions - Project overview - Policy questions 12/16/15 1/27/16 Survey Loss Estimate w/o Retrofit Purpose of Advisory Group To review and discuss implications of the project's technical findings and provide input about community concerns, priorities, and preferences. Before Meeting •AG2 minutes •AG3 agenda •Task 2 report At Meeting •Update on inventory and loss estimate efforts •Local program goals, effectiveness, and options •Start policy process discussion 3/17/16 AG4 4/14/14 June Oct AG5 May -Final loss estimates -Detailed policy discussion - Finalize rec’s - Draft rec’s Policy & Services Committee Summer Loss Estimate w/ Retrofit Task 3 Report Project and AG Process Status •Review of minutes from 1/27/16 AG2 meeting •Seismic Risk Management Program Website: http://www.cityofpaloalto.org/gov/depts/ds/s rmag.asp –Added content includes slides from last meeting and Task 2 report Inventory and Loss Estimates •Replacement cost Technical Advisory Committee (TAC) report •Inventory update •Loss estimate results for existing building stock Replacement Cost TAC Report Reminder: •Hazus program has default replacement costs in $/square foot •Example: 10,000 sf building with a replacement cost of $400/sf Replacement cost = 10,000 sf x $400/sf = $4,000,000 Calculating Loss •Loss = Cost of Damage / Replacement Cost •Example: $200,000 loss in a building that would cost $4,000,000 to replace Loss = $200,000 / $4,000,000 = 5% Issue: Replacement Cost ($/sf) •Hazus default full replacement cost models are based on RS Means (2014) •Location factors for Palo Alto: Residential = 15%, Commercial = 11% •At the Advisory Group Meeting #2, we concluded the default values should be revised for Palo Alto Hazus Occupancy Class Definition Average Palo Alto Cost per Square Foot RES3A Multi Family Dwelling – duplex $130.75 RES3B Multi Family Dwelling – triplex/quad $114.94 RES3C Multi Family Dwelling – 5-9 units $206.41 RES3D Multi Family Dwelling – 10-19 units $194.12 RES3E Multi Family Dwelling – 20-49 units $212.26 RES3F Multi Family Dwelling – 50+ units $199.90 RES4 Temp. Lodging $217.83 RES5 Institutional Dormitory $234.44 RES6 Nursing Home $238.07 COM1 Retail Trade $121.66 COM2 Wholesale Trade $118.13 COM3 Personal and Repair Services $143.47 COM4 Professional/ Technical/Business Service $194.52 COM5 Banks $281.88 COM6 Hospital $372.59 COM7 Medical Office/Clinic $267.85 COM8 Entertainment & Recreation $248.61 COM9 Theaters $186.45 COM10 Parking $84.59 IND1 Heavy $144.71 IND2 Light $118.13 IND3 Food/Drugs/Chemicals $229.48 IND4 Metals/Minerals Processing $229.48 IND5 High Technology $229.48 IND6 Construction $118.13 REL1 Church $118.13 AGR1 Agriculture $199.08 GOV1 General Services $152.63 GOV2 Emergency Response $259.52 EDU1 Schools/Libraries $193.00 EDU2 Colleges/Universities $214.91 Costs Included in Hazus Default Values •Bid cost (what owner pays the contractor directly) •A default location factor for Palo Alto. This needs adjustment. •2014 dollar values This needs adjustment to 2016 dollars. Soft Costs Sometimes Included in Loss Estimates •Demolition of existing building and limited site work •Design fees for architect and engineers •Testing and inspection costs •Permit fees •Utility connection fee •Owner change order contingency Costs Typically Not Included in Loss Estimates •Hazardous material abatement costs •Occupants-in-place costs •Accessibility costs •Historic building costs •Relocation/interruption costs (though sometimes done) •Project management costs •Renovation costs •Financing costs •Repair of existing conditions •Legal fees •FF&E (furniture, fixtures, and equipment) is not included since Hazus calculates content damage separately. Replacement Cost TAC Report •R+C and Vanir Construction Management prepared proposed adjustments to RS Means values. •Reviewed in 3/7/16 TAC conference call •TAC recommended increased values in general, and identified target values for selected common occupancies. •R+C updated values and distributed them to Advisory Group; no objections received. •Vanir reviewed values and refined a few upward for estimating consistency in non-target occupancies. Those were used in loss estimates. Replacement Costs Used Target Occupancies •5-9 Unit Residential: $402/sf •50+ Unit Residential: $390/sf •Retail Trade: $310/sf •Professional/Technical Office: $452/sf •Medical Office: $445/sf •High Technology: $461/sf •Costs are1.7-2.6 times the RS Means default values. •Costs are intended to be representative of averages across the town. Building Inventory Sources of Information •Digital tax assessor files •GIS files •Google Earth and Street View •1980s Palo Alto Building Dept. survey for the 1986 ordinance •SJSU/Palo Alto Fire Dept. survey of soft-story wood frame •12/9/14 memo on compliance status with City ordinance •Field sidewalk survey •Extensive quality assurance and re-surveying Buildings in Scope of Study •Total Palo Alto parcels: 21,187 –1 and 2 family: -15,198 –Remaining parcels: 5,989 •3 or more unit residential parcels: 3,630 –Actual distinct buildings: 1,324 •Other occupancy types: 2,369 –Removed 961 designated - 961 as “Possessory Interest” –Remaining buildings: 1,408 •Initial total in study group: 1,324 + 1,408 = 2,732 •Following field surveys, final total in study group: 2,645 What is the Total Exposure? •Number of buildings: 2,645 •Total replacement value of buildings: $23B •Total value of contents: $24B What are the Major Building Types? 25% 21% 17% 8% 6% 6% 2% 15% Number of Buildings Professional/Technical Residential: 3-4 Units Residential: 5-9 Units Retail Trade Residential: 10-19 Units Entertainment and Recreation Residential: 20-49 Units Other 35% 20% 6% 5% 5% 5% 4% 20% Building Value Professional/Technical Hospital Residential: 50+ Units Residential: 5-9 Units Schools/Libraries Retail Trade Residential: 10-19 Units Other Study Group Occupancy Types Year Built 0 20 40 60 80 100 120 140 1880 1902 1914 1925 1936 1948 1958 1968 1978 1988 1998 2008 Nu m b e r B u i l t Year Buillt First Seismic Code in Palo Alto in 1926 SEAOC Bluebook used in 1961 UBC Northridge EQ Changes in 1997 UBC 262 Buildings 357 Buildings 532 Buildings 491 Buildings 1003 Buildings San Fernando EQ Changes in 1976 UBC Loss Estimates •Two scenarios •Today: Initial run, without new retrofit •Future: –Develop conceptual retrofits with cost estimates –Second run: with new retrofit Earthquake Scenarios M7.9 City Hall 0.60g M6.7 City Hall 0.48g Loss Estimation Features Model Building Type Rube Goldberg’s Version of Hazus Year Built Occupancy Design Level Replacement Cost Earthquake Shaking (M7.9/M6.7) Content Value Soil Conditions at Site Distance from Fault Retrofit Status Soft Story Status Building Damage ($, % for M7.9/M6.7) Content Damage ($, % for M7.9/M6.7) Height Square Footage What are the Total Losses? Takeaway: Ratio for $ loss and average % damage is about 2, but is about 12 for number of buildings with over 20% loss. How Do the Building Losses Compare to Permit Valuations Processed Per Year? •M7.9 building losses: $1.95B •Palo Alto permit valuations –2013/2014: $336M –2014/2015: $480M –2015/2016: $191M first half, say $382M total –Three-year average in boom times: $400M •$1.95B repair and replacement costs ÷ $400M/year = 5 years Building Damage Ratio Building Damage Ratio Downtown Southwest Building Damage Ratio Southeast Takeaways •Depends on metric used •Types with the largest $ losses ≠ types with the highest damage % What are the Worst Building Types? What are the Worst Occupancies? Takeaways •Like building type, worst occupancy depends on metric used. •Largest $ losses ≠ highest damage % How Does Year Built Affect Losses? What is the Impact of a Soft Story? Takeaways: Soft story… •Approximately doubles the average damage ratio •Significantly increases the % of buildings with large loss ratios Light Wood Frame Building Damage With Soft Story Without Soft Story How Does Year Built Affect Steel Moment Frames? Takeaway: Year built (and design code) makes a significant difference. Benchmark is post-Northridge changes in 1997 UBC. How Does Year Built Affect Tilt-Up Buildings? Takeaway: Year built (and design code) makes a significant difference. Benchmark is post-Northridge changes in 1997 UBC. Tilt-up Building Damage Building Damage by Survey Sector What Benefit Do URM Retrofits Provide? Takeaways •Retrofitting URMs makes a significant reduction in average damage and in the number with large damage ratios. •There are few URM buildings compared to other building types. Implications for Policy Options •The estimated losses in a major event and potential reduction from retrofitting are significant. •Addressing building types known to be potentially hazardous and with large numbers of buildings will lead to the greatest reduction in losses. •Possible building types to consider: –Soft story wood frame buildings –Older concrete buildings –Older tilt-up buildings –Older steel moment frame buildings •Requirements imposed on different building types impact different groups of owners, tenants, and occupants. Options for Palo Alto Based on Assessment of Other Local Models •Programs break down by targeted building types, requirements, priority tiers, timelines, and incentives •Success is relative to goals •Effectiveness data is limited, but we know some paths achieve more retrofit progress and momentum than others Targeted Structural Systems, Year Built, and Other Characteristics Structural Systems / Age— e.g., URM, soft-story, older concrete Higher Occupancy / # Units — e.g., 5 or more residential units, 100+ persons Location — e.g., state-determined Earthquake Fault Zones, historic or downtown districts Uses — e.g., public schools, hospitals, essential services buildings Palo Alto’s Current Program Targets a Mix of Building Criteria and Location •Three categories based on structure type, occupancy and age •Relates to Central Business District •Options for addressing buildings with other vulnerabilities or characteristics: –Older concrete –Soft-story residential –Other structural feature/use/occupancy combinations (e.g., private schools, façades) Understanding and Taking Action on Older Concrete Building Risks Concrete Coalition organization and volunteer inventory: –23 case study cities –Estimated 16,000–17,000 pre-1980 concrete buildings in California high risk counties –San Francisco building taxonomy study Example Local Programs for Older Concrete •City of Los Angeles Building Code Divisions 91 & 96: –(1994 - 1996) triggered upgrading on pre-1976 tilt-ups –(2014) mandatory evaluation and upgrade if needed for nonductile concrete •City of Long Beach Chapter 18.71 –Voluntary guidance •City of Santa Monica Municipal Code 8.80 –Mandatory evaluation and upgrade if needed for existing nonductile concrete buildings •City of Burbank -- –voluntary guidelines for older reinforced concrete and concrete frame buildings with masonry infill 2015 Los Angeles Ordinance Policy development timeline: –Concrete Coalition inventory effort –LA Times freedom of information request to force Univ. of Calif. to release data, followed by featured article –Great ShakeOut –Mayor Garcetti create Seismic Advisory Task Force, headed by Lucy Jones (USGS) –Resilience by Design report Passed October 2015 Ordinance –Mandatory screening (3 yrs), evaluation (10 yrs), and subsequent retrofit (25 yrs) of nonductile concrete –Also included: mandatory evaluation and subsequent retrofit of soft-story Inventory Only Notify Only Voluntary Retrofit Mandatory Screening Mandatory Evaluation Mandatory Retrofit Santa Clara County San Jose San Leandro Richmond Sebastopol Oakland San Francisco Berkeley Alameda Los Angeles Fremont Compiled by S. Rabinovici, 2016. Increasing Requirements California Learners and Leaders in Soft- Story Programs In Development: Hayward LEARNING LEADING Options for Policy Mechanisms and Requirements Inventory Only Notify Only Voluntary Retrofit “Sunshine” Approaches Mandatory Screening Mandatory Evaluation Mandatory Retrofit City staff, consultants, and/or a volunteer organization has created an inventory of one or more suspected hazard building types, but list is not officially released to the public or been acted upon. An inventory exists and a policy has been established to notify owners if their property is on a suspected hazard building list. Owners of properties on a publically available list are formally encouraged to retrofit, possibly by offering of technical assistance, financial help, or policy incentives. Properties on a publically available list are subject to one or more methods of forced information sharing, such as tenant notification, public signage, recorded notice on the property title. Owners of properties on a publically available list are required to submit a form within a fixed time window that is filled out by a licensed building professional. Owners of properties on a publically available list are required submit an evaluation completed by a licensed engineer within a fixed time frame. Owners of properties on a publically available list are required to retrofit by a certain date. This step may be implemented following a screening or evaluation phase. •Packaging and phasing Palo Alto’s Current Program Relies on Voluntary Action and Planning Incentives •Floor Area Bonus •Options for addressing remaining properties on the existing list: –Mandate evaluation –Mandate retrofit –Ramp up voluntary program with added features (e.g., technical assistance, increase incentives, or sunshine measures) City of Berkeley Soft-Story: 2005 – 2013 Mandatory Evaluation to Mandatory Retrofit City Program Inventory Method and Timing Targeted Buildings Deadline for Evaluation Deadline for Permit Deadline for Retrofit Berkeley 1996 and 2003 (collaboration with UC Berkeley and EERI) 5 or more units, pre- 1996 2 years (under 2005 law) 2 years 4 years The Impact of Mandated Soft-Story Evaluations: Seven Fold Increase in Permit Application Rate 7 2 2 2 3 5 18 30 31 0 5 10 15 20 25 30 35 20 0 1 20 0 2 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 & P e n d i n g Year Nu m b e r o f A p p l i c a t i o n s R e c e i v e d Note: Data collected April 2010, Source: D. Lambert, personal communication. Law Implemented ONE IN FOUR BERKELEY SOFT STORY OWNERS COMPLETED A VOLUNTARY RETROFIT WITHIN TWO YEARS. URM Progress Statewide (2006) ON AVERAGE, THREE TIMES MORE BUILDINGS HAVE BEEN RETROFIT OR DEMOLISHED IN CITIES WITH MANDATORY PROGRAMS Data Source: CSSC, 2006 (Table 3) Prioritization and Pacing •Among targeted buildings, sequence or timelines can be structured differently –Year built, number of stories, unit totals, occupancy, or combinations thereof –Puts most important and/or risky building first •Most soft-story policies use this tactic –SF, Oakland, and LA have “tiers” •Eases both owner compliance and program operations Palo Alto’s Current Program Uses Categorization to Shape Goals & Timing •Options for further leveraging prioritization and pacing: –Create graduated schedule to emphasize most important buildings first –Allow owners more time to comply for more costly and complex projects –Gradually reduce incentives for owners that take longer to comply “Sunshine” Measures: Searchable Lists, Signs, Tenants, and Notices Palo Alto’s Current Program Does Not Take Full Advantage of Sunshine •Options for making more visible and increasing the costs of not retrofitting: –Make listing of buildings more accessible –Publicize list of buildings –Tenant notification –Community forums •These options ALSO increase the benefits of retrofitting Nudging and Easing the Path With Incentives Financial Tools Policy Tools Bonds Density or Intensity Bonuses Grants Exemptions for Non-Conformities Loans Zoning Incentives Property-Assessed Financing Loan (PACE) Condominium Conversion Assistance Tax Credits Exemptions or Relief from Standards or Non- Conforming Conditions Real Estate Transfer Tax Rebates Exemption from Future Retrofit Requirements Waivers or Reductions of Building Department Fees Transfer of Development Rights (TDR) Pass Through of Retrofit Costs to Tenants Expedite Permits, Inspections, and Reviews Special District or Historic Designation Tax Reductions Strategically Combine Policy Features to Promote Risk Reduction 56 PUBLIC SAFETY, LOSS AVOIDANCE, AND RESILIENCE BENEFITS FROM RETROFIT WORK TACTIC 1: Publicize and increase the consequences of not retrofitting TACTIC 2: Publicize, ease the costs, increase the benefits of retrofitting STATUS QUO 1.Which buildings to target? –Expand to one or more other types or same categories as now? 2.Which requirements and features? –Expand voluntary program measures, add mandatory screening or evaluation, and/or mandate retrofit 3.How to motivate and sustain progress? –Phases, tiers, timing, and enforcement –Offer a strategic range of incentives –Adequate program budget What’s the Right “Policy Package” for Palo Alto Going Forward? The Advisory Group Process Moving Forward Suggested pathway to reach recommendations for Council: •Reach agreement on the most important sources of risk •Define program goals and priorities based on implications for the community •Evaluate policy options Meeting Wrap-Up and Follow-Ups •Outcomes from today •What will be added to the website •Next steps –Completion of Task 3 report and issue –Conceptual retrofit –Loss estimate of retrofitted buildings •Scope of next meeting on April 14 –Review loss estimate of retrofitted buildings –Continue policy option discussion Seismic Advisory Group Meeting #4 May 16, 2016 1 – 4 pm Rinconada Library MEETING MINUTES – SEISMIC RISK MANAGEMENT ADVISORY GROUP 1 Seismic Risk Management Project | City of Palo Alto Attendance By: Peter Pirnejad (PP), Development Services Director COPA George Hoyt (GH), Chief Building Official COPA Evon Ballash (EB), Assistant Building Official COPA Bud Starmer (Bud S), Building Inspection Supervisor COPA James Henrikson (JH), Fire Marshal COPA Meg Monroe (MM), Senior Planner COPA Bret Lizundia (BL), Principal, Rutherford+Chekene (R+C) Sharyl Rabinovic (SR), Sub Consultant to R+C Ken Joye, Venura NPC Rich Cody, Cody Brock Anil Babbar, CAA Chris Rojahn, ATC Tom Holzer, USGS Dana Brechwald, ABAG Teresa Marks, Hudson Pacific Blake Salzman, Allerion Consulting Group Roxy Rapp, Developer Ken Hayes, Hayes Group Annette Glanckopf, Community Minutes Prepared By: Evon Ballash ITEMS DISCUSSION Introduction General:  Introduction by GH: The objectives of this meeting are to review the loss estimation findings; introduce policy, incentive and disclosure options; and then the advisory group will break out in small groups to discuss possible policy directions and options.  Approval of Meeting #3 minutes was passed without comments.  BL reviewed meeting agenda in more detail with the group. Goals for the meeting are to review the project progress, discuss plans for the sidewalk survey, review the first round of loss estimates from AG3 for unretrofitted buildings, show the retrofit schemes developed for buildings of interest, and summarize the second round of loss estimate that cover retrofitted buildings. The meeting will also discuss policy, incentive, and disclosure options and issues. Handouts have been provided for discussion in small groups. They cover Guiding Principles, potential program options, building types to be considered, types of disclosure measure options, incentive option types that includes financial and policy incentives. A list of Straw Poll Questions has also been distributed and will be used for the small group discussion and an anonymous poll. Seismic Advisory Group Meeting #4 May 16, 2016 1 – 4 pm Rinconada Library MEETING MINUTES – SEISMIC RISK MANAGEMENT ADVISORY GROUP 2 Seismic Risk Management Project | City of Palo Alto Program Timeline  The timeline and purpose of the Advisory Group was discussed.  A general timeline for the project as well as the Advisory Group meetings was shared by BL.  Findings and results will be presented to the Policy and Services Committee later in the summer.  Advisory group program recommendations are to be presented to city council for review by October. Inventory  This project inventory excludes one and two family dwellings, public schools and OSPHD – regulated hospitals. It currently contains 2632 buildings.  Under the current Palo Alto seismic retrofit ordinance from 1986 there 25 buildings remaining that have not yet been retrofitted or demolished.  615 additional building have been identified as potentially hazardous and may be considered in the expanded ordinance.  The building types within this inventory that are considered a high priority for consideration in an updated City program include wood frame soft-story multi-family residential and commercial buildings, concrete tilt-up buildings, old concrete buildings including soft-stories, and steel moment frame structure (pre-Northridge). Loss Estimates  There are two scenarios considered: damage from earthquake with magnitude of 6.7 (M6.7) and with a magnitude of 7.9 (M7.9).  The ratio of M7.9/M6.7 of buildings with a damage ratio ≥ 20% is 12:1 without retrofitting. Average ratio of M7.9/M6.7 for Total Losses (building damage plus content damage in dollars) without retrofitting is 2:1. Total losses for M7.9 are $2.4 billion.  After retrofitting, the number of buildings with damage ratio ≥ 20% is significantly reduced. The losses for M7.9 event are $1.3 billion.  Retrofitting reduces the expected damage in a M7.9 event by approximately $1.1 billion in building damage and content.  For building types: the worst damage depended on the metrics used. Building types with the largest dollar amount losses were not necessarily buildings with the highest percentage of damage since there are different numbers and sizes of buildings in the Seismic Advisory Group Meeting #4 May 16, 2016 1 – 4 pm Rinconada Library MEETING MINUTES – SEISMIC RISK MANAGEMENT ADVISORY GROUP 3 Seismic Risk Management Project | City of Palo Alto different building types. The building types with the largest aggregate building damage dollar losses are concrete shear wall, concrete tilt-ups, and wood frame commercial/industrial buildings.  For building occupancies: the worst occupancy for damage also depended on the metrics used. Occupancies with largest dollar amount damages were not necessarily the worst damaged. The occupancy types with the largest aggregate building damage dollar losses were Professional/ Technical, School/ Libraries and Retail occupancies.  Older buildings performed worst on average than newer buildings. Retrofit improvements to older pre-1927 buildings and buildings built between 1927–1961 had the most benefit in total aggregate damage dollar loss reduction.  For building damage by survey sector, one of the sectors wit h the greatest reduction in aggregate building damage dollar losses occurred along Page Mill Rd where there are a number of older commercial buildings.  The ratio of average damage for soft story buildings without retrofitting compared to buildings without soft stories was doubled. Soft story buildings also significantly increased the percentage of buildings with large loss ratios.  The benefits of retrofitting soft story buildings are significant Retrofit Schemes  The 12 most common building prototypes seen in Palo Alto were considered.  Study Example Prototype: Wood frame larger residential with soft story prototype: • Infill steel moment frame along the first floor soft story level • provide new plywood shear walls in the perpendicular walls Performance Expectations  Unstrengthened building had significant damage after M7.9 with the risk of collapse on the ground floor and significant cracking of the stucco walls and interior partition damage. There were a higher percentage of red tagged structures compared to green and yellow tags.  Rehabilitated structures for life safety concerns had less damage with a lower amount red tags and a higher number of green tags. Seismic Advisory Group Meeting #4 May 16, 2016 1 – 4 pm Rinconada Library MEETING MINUTES – SEISMIC RISK MANAGEMENT ADVISORY GROUP 4 Seismic Risk Management Project | City of Palo Alto Retrofit Costs  Hard costs include the contractor bid cost and design contingencies to conceptual retrofits.  Soft costs include design fees for architect and engineers, testing and inspection costs, permit fees and owner change orders.  Not included are hazmat abatement, occupants-in-place cost, accessibility upgrades, historic building costs, relocation/ interruption of tenants, program management, renovation costs, repair of existing conditions, financing costs, legal fees, etc.  The 12 retrofit prototype buildings types were: 1. Woodframe Smaller Residential, 2 stories 2. Woodframe Larger Residential, 2 stories 3. Woodframe Larger Residential, 3 stories 4. Woodframe Commercial/ Industrial, 2 stories 5. Steel Moment Frame, 2 stories 6. Concrete Shear Wall, 1 story 7. Concrete Shear Wall, 2 stories 8. Concrete Tilt-up, 1 story 9. Concrete Tilt-up, 2 stories 10. Reinforced Masonry, 1 story 11. Reinforced Masonry, 2 stories 12. Unreinforced Masonry Bearing Wall, 1 story  For the retrofit prototypes, the average retrofit costs ranged from $6/s.f. to $110/s.f. Cost Benefits Model Building Type:  The average damage reduction from retrofitting ranged from $4/s.f. to $121/s.f.  Steel frame building with masonry infill showed the highest retrofit benefit of $121/s.f.  The retrofit costs were on order with the damage reduction. Selected Building Types with Highest Benefit to Cost Ratio:  Pre-1977 Woodframe Soft Story Buildings: 1. Inventory of 294 buildings 2. $46/s.f. average damage loss avoided by retrofitting 3. Cost to retrofit $4/s/f 4. Average loss avoided/average retrofit cost: 4:1  Pre-1998 Tilt-Up Buildings: 1. Poor connections of roof to walls 2. Intermediate and end roof bays collapses 3. Average loss avoided/average retrofit cost: 3:1 Seismic Advisory Group Meeting #4 May 16, 2016 1 – 4 pm Rinconada Library MEETING MINUTES – SEISMIC RISK MANAGEMENT ADVISORY GROUP 5 Seismic Risk Management Project | City of Palo Alto  Pre-1977 Concrete Soft Story Buildings: 1. Inventory of 37 buildings 2. Average loss avoided/average retrofit cost: 3:1  Pre-1998 Steel Moment Frame Buildings: 1. Average loss avoided/average retrofit cost: 11:1 (high) 2. Low cost retrofits with steel brace frames. Policy Mechanisms Range of Policies Approaches:  Inventory Only: create a list of hazard building types for the public  Notify Only: the inventory list is used to notify property owners  Voluntary Retrofit: owners on the public inventory list are encouraged to retrofit.  Disclosure Measure: publically available lists are disclosed to tenants, public signage, recorded notice.  Mandatory Screening: owners on the public inventory are required to submit a form by a licensed professional  Mandatory Evaluation: owners on the public inventory are required to submit an evaluation by a licensed professional  Mandatory Retrofit: owners on the public inventory are required to retrofit by a certain date. Bundled Options with Increasing Regulatory Strength:  Option 1: Status Quo, do nothing. The cities of Albany, Alameda and Richmond have chosen this path.  Option 2: Add more building type requirements with voluntary retrofit.  Option 3: Add more building types with voluntary retrofit plus disclosure.  Option 4: Add more building types with some triggered mandatory measures.  Option 5: Add more building types with some mandates with fixed timelines.  Option 6: Add more building types with more mandates with timelines. This option was used by Los Angeles and San Francisco.  Bud S noted that Town & Country Shopping Center has completed extensive retrofit. The cost of retrofit is exempt from property tax increases for improvements. Disclosure Methods  Bundle 1: Basic Transparency, inventory lists and information are readily available for owners on websites. Seismic Advisory Group Meeting #4 May 16, 2016 1 – 4 pm Rinconada Library MEETING MINUTES – SEISMIC RISK MANAGEMENT ADVISORY GROUP 6 Seismic Risk Management Project | City of Palo Alto  Bundle 2: Community Awareness: public inventory lists are focused for tenants and citizens, such as tenant notification forms to be signed and on file with the city. San Francisco runs retrofit fairs, similar to a trade show with vendors and regulatory agencies.  Bundle 3: Onsite signage on buildings with seismic hazards. Example signs can be multi-lingual. Also includes building rating systems.  Examples of website disclosure lists can be found with the City of Alameda, Berkeley.  USRC (U.S. Resiliency Council) provides a rating system of buildings for safety, damage and recovery. Incentives Financial Incentives:  Type 1: Basic Help 1. Provide fee waivers or reductions of building permit fees.  Type 2: Project Facilitation: 1. Property-Assessed Financing Loan, PACE, subsidized loan that is paid off through tax increments over 20 years.  Type 3: Deeper Financial Assistance: 1. Real estate transfer tax rebates 2. Special district or historical designation tax reduction 3. Tax credits 4. Grants 5. Special purpose bonds. Policy Incentives:  Type 1: Basic Help 1. Exemption from future retrofit requirements 2. Expedited building permits and inspections  Type 2: Project Facilitation 1. Exemptions or relief from standards or non-conforming conditions 2. Zoning relief, e.g. set-backs, parking 3. Density or intensity bonuses, e.g. increase F.A.R. Floor Area Ratios 4. Transfer of Development Rights Small Group Breakout  The advisory group participants were split into 4 groups and asked to discuss the merits and drawbacks of the various policy options, disclosure methods and incentive options. At the end of the discussion, participants are asked to complete an anonymous straw poll survey. Seismic Advisory Group Meeting #4 May 16, 2016 1 – 4 pm Rinconada Library MEETING MINUTES – SEISMIC RISK MANAGEMENT ADVISORY GROUP 7 Seismic Risk Management Project | City of Palo Alto Large Group Discussion Group A Comments:  Discussed policy options of owner evaluation of soft story residential multi-family buildings on a 1 -2 year lease. Tenant notices, building evaluations and retrofits could be on timeline as triggers may not be applicable or desirable.  Commercial building tenants have longer leases of 5 years and are not readily vacant to retrofit, so a timeline may not be feasible. Possibly a trigger by building sale could be used.  Incentives to allow lease termination to facilitate retrofit work and TDR/FAR expiration. Group B Comments:  Concerned about repercussions of rental increases for retrofit work.  Concerned that short term triggers may compromised quality.  Loss estimation for individual properties could be beneficial.  Incentive to retrofit was already high for owners.  Quality of life matters and there may be resistance to zoning relief.  Residents care if buildings are safe and that people are informed with signage. Group C Comments:  Discussed concerns of residents separately from business owners  Residents favor signage on buildings and sunset triggers for incentives  Business owner finds sunset triggers were a disincentive and considers FAR to be a valuable incentive tool for large commercial buildings.  Favors bundles 1 & 2 for disclosure measures, seems to be more realistic, but signage might be too much.  Signage could kick in after a certain time period if no retrofit action occurs. Group D Comments:  Felt that soft story retrofits were the “best bang for the buck” value wise and easier to retrofit without disturbing occupants.  Include older tilt-up building type, with feasible retrofits by improving roof ledger connections.  Provide incentives and mandates for older URM buildings that have not yet been retrofitted to get them safe. Liability concerns on these 25 URM buildings may need to ramp up with notifications.  Favors Type 2: Project Facilitation using policy incentives, financial incentives may not be as critical in Palo Alto.  Parking incentives for retrofitting to be transferrable. Seismic Advisory Group Meeting #4 May 16, 2016 1 – 4 pm Rinconada Library MEETING MINUTES – SEISMIC RISK MANAGEMENT ADVISORY GROUP 8 Seismic Risk Management Project | City of Palo Alto Straw Poll Results Policy Options;  Option 5 received the most votes with 9, which covered increased scope, some categories voluntary and some categories mandatory with enforcement by a fixed timeline.  Option 3 received the next highest votes of 4, and supported increased scope, voluntary retrofit and some disclosure measures.  Option 1: Status Quo received one vote  Option 6: Increase scope with mandatory measures received one vote. Building Types:  Soft Story was almost unanimous in all combinations, except for one vote  Combinations of all types were favored by all. Disclosure Measures:  Combination of the various bundles was chosen by all  Signage received less robust support. It may be desirable to implement this with voluntary programs and/or after the owner has not progress in retrofitting. Incentives:  Type 2: Project Facilitation tied for the most votes with 7  Type 4: Combination of all types received 7 votes  Type 3: Deep Financial Assistance received 1 vote Level of Interest:  High interest was selected for all Action Items  Create a consensus from the advisory group to make recommendations to the city council  Next meeting in 4 - 5 weeks (mid to late June). Send out doodle pool to members. City of Palo Alto Seismic Risk Management Program Advisory Group Meeting #4 May 16, 2016 AG1 AG2 - Recap Palo Alto policies - State legislative review - Local policy review - Inventory & loss estimate update AG6 Project End Rec’s to Council - Introductions - Project overview - Policy questions 12/16/15 1/27/16 Survey Losses w/o Retrofit Purpose of Advisory Group To review and discuss implications of the project's technical findings and provide input about community concerns, priorities, and preferences. Before Meeting •AG3 minutes •AG4 agenda & handouts •Task 2 report •Task 3 report At Meeting •Review loss estimation findings & cost/benefit results •Introduce policy, incentive, and disclosure options •Discuss potential policies 3/17/16 AG4 5/16/14 July Oct AG5 June - Finalize rec’s - Draft rec’s Policy & Services Committee/Council Summer Losses w/ Retrofit Task 3 Report - Inventory and loss estimate update - Local program goals, effectiveness, and options Retrofit Concept/ Estimate Task 2 Report AG3 Project and Advisory Group Process Status •Review of minutes from 3/17/16 AG3 meeting •Seismic Risk Management Program Website: http://www.cityofpaloalto.org/gov/depts/ds/s rmag.asp –Added content includes presentation slides and minutes from last meeting Guiding Principles •Palo Alto faces significant losses. •Potential benefits from retrofitting are also significant. •Addressing known potentially hazardous building types that are present in large numbers maximizes risk reduction. •A range of policy approaches can be combined into a program package. •A range of incentives can help ease the process. How Many Buildings are We Talking About? (the Short Version) •Covered by current ordinance, but not yet retrofit or demolished: 25 •Additional buildings that are potentially hazardous and recommended for a possible expanded ordinance: 615 The Longer Version Tax parcels 21,187 Study group buildings 2,632 Consolidate parcels to buildings Remove 1 & 2 family, public schools, and OSHPD-regulated hospitals Not demolished 66 Wood (W1, W1a, W2) 1532 Tilt-up (PC1) 239 Old concrete (C1-C3) 324 Steel MF (S1) 73 Soft story 294 Other 297 Pre-Northridge 35-52 Soft story 37 Remaining 25 Addressed 41 Addressed xxx Pre-Northridge 99-232 Total additional buildings for a potential ordinance 465-615 Retrofittable 884 Retrofittable 35-52 Retrofittable 207 Retrofittable 99-232 Retrofittable 162-180 Total that could be retrofit 1387- 1555 Range for tilt-up, steel MF, and other is due to whether 1962- 1997 non-soft stories are retrofit Not covered by ordinance 2566 Current ordinance 89 What is the Total Exposure? •Number of buildings: 2,632 •Total replacement value of buildings: $18.9B •Total value of contents: $17.3B What are the Major Building Types? Loss Estimates •Two scenarios (M6.7 and M7.9) •Last meeting: –Initial run: Losses without new retrofit •Today: –Updated the initial run to exclude hospitals not regulated by Palo Alto –Developed conceptual retrofits with cost estimates –Losses with new retrofit –Losses avoided by retrofitting What are the Total Losses Without New Retrofitting? Takeaways: •Ratio for $ loss and average % damage is about 2, but is about 12 for number of buildings with over 20% loss. •Losses in M7.9 are $2.4B. What are the Total Losses With New Retrofitting? Takeaways: •Ratio for $ loss and average % damage is about 2, and the number of buildings with over 20% loss is dramatically reduced (e.g. in M7.9 224 without retrofit vs. 6 with retrofit) •M7.9 losses are $1.3B. What is the Improvement due to Retrofitting? Takeaway: Retrofitting reduces the expected damage in a M7.9 event by about $1 billion in building and content damage. Improvement = Reduction in damage = Losses without retrofit – losses with retrofit Building Damage Ratio – Without New Retrofit Building Damage Ratio – With New Retrofit Building Damage Ratio - Downtown Without Retrofit With Retrofit Takeaways •Depends on metric used •Largest $ losses ≠ types with the highest damage % What are the Worst Building Types? What are the Worst Occupancies? Takeaways •Like building type, worst occupancy depends on metric used. •Similarly, largest $ losses ≠ highest damage %. How Does Year Built Affect Losses? Before Retrofit | San Andreas M7.9 Earthquake Which Age Group Benefits Most? After Retrofit | San Andreas M7.9 Earthquake Building Damage Ratio by Survey Sector Without Retrofit With Retrofit Building Damage Reduction by Survey Sector What is the Impact of a Soft Story? Takeaways: Soft story… •Approximately doubles the average damage ratio •Significantly increases the % of buildings with large loss ratios What is the Benefit of Retrofitting a Soft Story Building? Takeaway: Retrofitting a soft story provides significantly more benefit in the ratio of losses avoided. Conceptual Retrofits •12 building prototypes, covering the most common types in Palo Alto •For each prototype –Written description and sketch of building & retrofit scope by R+C, with typical retrofit details from FEMA 547 –Estimate by cost subconsultant Vanir Construction Management Example Prototype: Woodframe Larger Residential Source: “Practical Solutions for Improving the Seismic Performance of Buildings with Tuckunder Parking,” by Rutherford + Chekene, for the City of San Jose, May 2000 Retrofitting Techniques Source: Rutherford + Chekene, 2000 Performance Expectations Source: Rutherford + Chekene, 2000 Building Prototype 3 in Palo Alto Retrofit Costs Include •Hard cost –Cost the owner pays the contractor (the bid cost) –Design contingency as these are conceptual retrofits •Soft costs –Architect and engineer design fees –Testing and inspection costs –Permit fees –Owner change order contingency Retrofit Costs Do Not Include •Hazardous material abatement costs •Occupants-in-place costs •Accessibility costs •Historic building costs •Relocation/interruption costs •Project management costs •Renovation costs •Financing costs •Repair of existing conditions •Legal fees Conceptual Retrofit Prototype Costs Comparison of Benefits and Costs by Model Building Type Takeaways: •Average damage and damage reduction vary by building type. •Retrofit costs are on the order of the damage reduction. Comparison of Benefits and Costs by Selected Model Building Type, Date and Characteristics Takeaway: •The selected building types with their deficiencies have a higher benefit-to-cost ratio than the average types and a substantial number of buildings. Guiding Principles •Palo Alto faces significant losses. •Potential benefits from retrofitting are also significant. •Addressing known potentially hazardous building types that are present in large numbers maximizes risk reduction. •A range of policy approaches can be combined into a program package. •A range of incentives can help ease the process. Alternative Policy Mechanisms and Requirements Inventory Only Notify Only Voluntary Retrofit Disclosure Measures Mandatory Screening Mandatory Evaluation Mandatory Retrofit City staff, consultants, and/or a volunteer organization has created an inventory of one or more suspected hazard building types, but list is not officially released to the public or been acted upon. An inventory exists and a policy has been established to notify owners if their property is on a suspected hazard building list. Owners of properties on a publically available list are formally encouraged to retrofit, possibly by offering of technical assistance, financial help, or policy incentives. Properties on a publically available list are subject to one or more methods of forced information sharing, such as tenant notification, public signage, recorded notice on the property title. Owners of properties on a publically available list are required to submit a form within a fixed time window that is filled out by a licensed building professional. Owners of properties on a publically available list are required submit an evaluation completed by a licensed engineer within a fixed time frame. Owners of properties on a publically available list are required to retrofit by a certain date. This step may be implemented following a screening or evaluation phase. Comparison of Policy Options for Palo Alto Options Current 3 Categories Soft Story Wood Frame Older Concrete Older Tilt-Up Older Steel Moment Frame Mechanism Timeline 1: Status Quo  Voluntary Retrofit Elapsed 2: Same Program, More Types  ? ? ? ? Voluntary Retrofit None 3: Same Program, More Types, + Disclosure  ? ? ? ? Voluntary Retrofit plus Disclosure None 4: More Types, Some Triggered Mandates  ? ? ? ? Some mandatory measures Triggered Events 5: More Types Some Fixed Timeline Mandates  ? ? ? ? Some mandatory measures Fixed Timeline 6: More Mandates, All on Fixed Timeline  ? ? ? ? More mandatory measures Fixed Timeline Regulatory Strength Inventory Only Strict Mandates Sc o p e Fe w e r B u i l d i n g T y p e s Mo r e B u i l d i n g T y p e s Santa Monica Burbank Alameda OPTION 1: Status Quo OPTION 3: More Types + Disclosure OPTION 2: More Types OPTION 4: More Types, Triggered Mandates Long Beach Richmond Albany OPTION 6: More Types, More Mandates, Fixed Timeline San Francisco Los Angeles Fremont Berkeley Oakland OPTION 5: More Types, Some Mandates, Fixed Timeline Palo Alto Which Direction is Best for Palo Alto? Digital data on all buildings of interest Walking survey to collect further data for about half those buildings, clustered by sectors to improve sample rigor •Palo Alto can now go one of two routes: –Detailed field effort on remaining of buildings to develop a comprehensive inventory list –Use generic “building of interest” criteria then have owners go through an extra screening phase Status of Palo Alto’s New Inventory Key Additional Considerations •Potential disclosure measures •Types and sizes of incentives to offer •Potential to integrate with other disaster-related programs or initiate an overall community resilience effort •e.g., post-disaster rehabilitation ordinances or re-occupancy program Bundle 3—Signage •Onsite-focused •Some ongoing enforcement costs •May draw public attention •Owners fear more stigma than may actually occur Bundle 2—Community Awareness •Tenant- and citizen- focused •Some upfront and ongoing enforcement costs •Empowers informed decisions Bundle 1—Basic Transparency •Building owner-focused •Some upfront and ongoing IT costs •Promotes information access Disclosure Measures Vary in Strategy, Ease of Implementation, and Effectiveness More Difficult to Implement DISCLOSURE MEASURES Make the list more prominent on city website Include compliance status on the city website Record notice on title Require tenant notification Community events (e.g., forums, retrofit fairs) Distribute educational materials Require signage until retrofit is completed Require signage in perpetuity Encouraging or requiring use of building rating systems Easier to Implement City Websites and Online Lists Vary in Sophistication, Content, and Format Displayed or Downloadable PDFs City of Alameda Soft-Story List Includes Owner Names Options for Informing the Community •Tenant Notification is required in the ordinances of most Bay Area soft-story wood frame programs City of San Francisco Soft-Story Wood Frame Program Online Searchable Map •Compliance status updated weekly Retrofit Fairs •Trade show style event at Bill Graham auditorium •One-stop-shop for both ordinance compliance and service providers •Open to the public City of San Francisco Retrofit Fairs – 2014 and 2016 Broader Community Education Events City of Berkeley Preparedness Fair – April 2016 Signage Examples City of San Francisco Non-Compliance Sign for Wood Frame Soft-Story City of Berkeley Required Sign for Wood Frame Soft-Story Example Required URM Building Sign City Involvement in Use of Building Rating Systems •Similar strategy to US GBC LEED •City of Los Angeles pledged to implement for its own buildings Disclosure Measure Considerations •Makes building characteristics more visible and understandable •Transparency, public’s right to know •Increases the downsides of not retrofitting (esp. in voluntary programs) •Increases the benefits of retrofitting •Relatively low cost to city •Some initial resistance re: stigmatizing Incentives Options: Basic Help More Difficult to Implement FINANCIAL INCENTIVES (direct money) POLICY INCENTIVES (indirect or in-kind) Waivers or reductions of building department fees Property-Assessed Financing Loan (PACE*) Other subsidized or special term loans Real estate transfer tax rebates Special district or historic designation tax reductions Tax credits Grants General obligation or special purpose bonds Exemption from future retrofit requirements Expedited permits, inspections, and reviews Exemptions or relief from standards or non-conforming conditions Technical assistance for owners on navigating financing, compliance, and project management issues Zoning relief (e.g., setbacks, parking) Density or intensity bonuses (e.g., FAR) Transfer of Development Rights (TDR) Easier to Implement * PACE = Property Assessed Clean Energy Type 1: Basic Help Incentives: Facilitate Projects More Difficult to Implement FINANCIAL INCENTIVES (direct money) POLICY INCENTIVES (indirect or in-kind) Waivers or reductions of building department fees Property-Assessed Financing Loan (PACE*) Other subsidized or special term loans Real estate transfer tax rebates Special district or historic designation tax reductions Tax credits Grants General obligation or special purpose bonds Exemption from future retrofit requirements Expedited permits, inspections, and reviews Exemptions or relief from standards or non-conforming conditions Technical assistance for owners on navigating financing, compliance, and project management issues Zoning relief (e.g., setbacks, parking) Density or intensity bonuses (e.g., FAR) Transfer of Development Rights (TDR) Easier to Implement * PACE = Property Assessed Clean Energy Type 2: Project Facilitation PACE = Property Assessed Clean Energy, Now Available for Seismic •AllianceNRG: https://www.alliancenrg. com/retail/ •Cities statewide can opt in (Berkeley, San Francisco) •100% loan paid off through tax increments over 20 years •Backed by Deutche Bank •Do owners really need it? Incentives: Help Pay for Projects FINANCIAL INCENTIVES (direct money) POLICY INCENTIVES (indirect or in-kind) Waivers or reductions of building department fees Property-Assessed Financing Loan (PACE*) Other subsidized or special term loans Real estate transfer tax rebates Special district or historic designation tax reductions Tax credits Grants General obligation or special purpose bonds Exemption from future retrofit requirements Expedited permits, inspections, and reviews Exemptions or relief from standards or non-conforming conditions Technical assistance for owners on navigating financing, compliance, and project management issues Zoning relief (e.g., setbacks, parking) Density or intensity bonuses (e.g., FAR) Transfer of Development Rights (TDR) Easier to Implement Type 3: Deeper Financial Assistance Type 1: Basic Help Incentive Options for Palo Alto More Difficult to Implement FINANCIAL INCENTIVES POLICY INCENTIVES Waivers or reductions of building department fees Property-Assessed Financing Loan (PACE*) Other subsidized or special term loans Real estate transfer tax rebates Special district or historic designation tax reductions Tax credits Grants General obligation or special purpose bonds Exemption from future retrofit requirements Expedited permits, inspections, and reviews Exemptions or relief from standards or non-conforming conditions Technical assistance for owners on navigating financing, compliance, and project management issues Zoning relief (e.g., setbacks, parking) Density or intensity bonuses (e.g., FAR) Transfer of Development Rights (TDR) Easier to Implement Type 2: Project Facilitation Type 3: Deeper Financial Assistance * PACE = Property Assessed Clean Energy Policy Incentive Considerations •Can relieve design challenges in what may be complex projects •Potential to compensate for project cost through increased revenues or resale value •Helps owners navigate unfamiliar terrain and overcome barriers •Shows a spirit of compromise •Can be difficult to implement for all parties 5 Minute Stretch Break Small Group Activity •About four per group •25 minutes •Choose a scribe •Discuss the five handout questions •Project Team members are a resource •Volunteer from each reports back to the larger group 1.Which of the six policy options do you most favor at this time? 2.Which building types do you think Palo Alto should address? –Top priorities –Approximate timeframes Discussion Questions: Program Scope and Requirements 3.Which disclosure measures do you most favor? 4.Which incentives do you most favor? Discussion Questions: Program Features 5.How in favor are you of recommending that Palo Alto address other disaster and broader community resilience issues? Discussion Questions: Looking to the Future Straw Poll Results Meeting Wrap-Up and Follow-Ups •Outcomes from today •What will be added to the website •Next steps CITY OF PALO ALTO City of Palo Alto Seismic Risk Management Program Advisory Committee Member Rinconada Library (Embarcadero Room) 1213 Newell Rd. Palo Alto, CA 94303 MEETING OBJECTIVES • Advisory Group members discuss and compare details regarding the two most promising policy directions • Prepare list of points of agreement, further discussion needed, and plan for final report AGENDA Time Subject Lead 1:00 pm Welcome George Hoyt I 1:05 pm Project business and meeting·overview Bret Lizundia • Review/approve minutes from 5/17/16 AG4 meeting • Quick recap of ongoing activities and timeline • Review meeting agenda and outcomes 1:15 pm Policy options overview and large group discussion: Bret Lizundia • Building categories that reflect greatest potential for aggregate risk reduction • Preferred requirements for each • Potential subcategories or priority tiers • Appropriate timelines 2:30 pm Stretch Break 2:40 pm Large group discussion of additional policy features: Sharyl Rabinovici • Highest potential disclosure measures • Highest potential incentive measures 3:30 pm Meeting Wrap-Up All I Bret Lizundia • Generate lists of draft conclusions and issues requiring further discussion • Next steps 4:00pm Adjourn Seismic Advisory Group Meeting #5 June 27, 2016 1 – 4 pm Rinconada Library MEETING MINUTES – SEISMIC RISK MANAGEMENT ADVISORY GROUP 1 Seismic Risk Management Project | City of Palo Alto Attendance By: George Hoyt (GH), Chief Building Official COPA Evon Ballash (EB), Assistant Building Official COPA James Henrikson (JH), Fire Marshal COPA Meg Monroe (MM), Senior Planner COPA Bret Lizundia (BL), Principal, Rutherford+Chekene (R+C) Sharyl Rabinovic (SR), Sub Consultant to R+C Rich Cody (RC), Cody Brock Tom Holzer, USGS Teresa Marks, Hudson Pacific Roxy Rapp (RR), Developer Ken Hayes (KH), Hayes Group Annette Glanckopf, Community Doug Hohbach (DH), Hohbach – Lewin Jessica Epstein, Silvar, Policy Minutes Prepared By: Evon Ballash ITEMS DISCUSSION Introduction/Project Timeline General: Introduction by GH/BL: This is the last work session before that final advisory meeting. The objectives of this meeting are to review the previous straw poll results and policy framework handout; refine policy options; and identify conclusions, points of agreement, and issues warranting further attention. Eventually, the Advisory Group effort will develop recommendations for the City Council. The Meeting #4 minutes were approved without comment. BL reviewed timeline of the Advisory Group up to AG4. Draft recommendations will be developed following the meeting, with completion at the final AG6 meeting. There will not be a Policy and Services review meeting. Rather, recommendations go directly to the City Council in November or December. Following the meeting, a 12/5/16 date for presentation to the City Council was established. Guiding Principles Palo Alto faces significant losses. Potential benefits from retrofitting are also significant. Addressing known potentially hazardous building types that are present in large numbers in Palo Alto maximizes risk reduction. Range of policy approaches can be considered for building types that pose a worse than average risk and lend themselves to available ordinances with engineering techniques adoptable to retrofit. Seismic Advisory Group Meeting #5 June 27, 2016 1 – 4 pm Rinconada Library MEETING MINUTES – SEISMIC RISK MANAGEMENT ADVISORY GROUP 2 Seismic Risk Management Project | City of Palo Alto Parameters for Comparing Different Building Types to Target Review the number of affected buildings including multi-family residential units and commercial. The impacted areas are distributed all over town. There are no areas of high concern. Broad implications for collapse prevention, losses avoided, the retrofit costs incurred, and the average loss avoided/retrofit cost ratio Potential Further Study Areas not covered in this study but that might be considered by the City in the future include: · Historic buildings in each building type category and whether they should have special requirements in an updated ordinance. · Parking implications: the loss of parking spaces caused by retrofitting, either temporarily during construction or permanently. · Small businesses that are impacted by seismic retrofits, loss of business, as well as improvements in speed of recovery. · Renter impacts: displacement during construction, rental rate increases, vacancy rates. Policy Framework Six possible package options: 1. Status quo 2. Add more building types to the scope, but retrofit remains voluntary 3. Add more disclosure measures 4. Add triggered mandates, such as when a building is sold or undergoes substantial renovation 5. Add mandated, fixed timelines for selected building types 6. More building types, mandates, fixed timelines, everything included (e.g., S.F., L.A.) Straw poll strongly favored Option #5, with some for Option #3 and none for Option #1. Option #3 discussion: Complete the URM retrofit program; address the soft-story wood frame buildings. Will tenants be displaced for soft-story retrofits? BL: Retrofit ordinances focus on the soft-story deficiency at the ground floor parking level. As a result, most of the retrofit work can be done at the ground story without affecting the living areas above. There will be some noise and dust, and temporary loss of parking. There is less amount of disruption to occupants with Seismic Advisory Group Meeting #5 June 27, 2016 1 – 4 pm Rinconada Library MEETING MINUTES – SEISMIC RISK MANAGEMENT ADVISORY GROUP 3 Seismic Risk Management Project | City of Palo Alto this building category than other building categories. There is Advisory Group support for enhancing disclosure measures and incentives. Topics Discussed Which building type categories to add to the program. The extent of mandatory requirements for each new category. Whether residential (multi-family) or non-residential buildings should have different requirements. General timelines for retrofitting. Second handout shows a Comparison of Selected Categories: Column 4 “Number of Housing Units” was added to address questions and concerns from the Advisory Group Category IV: Soft-Story Woodframe (SSWF) Buildings: Inventory of 294 buildings and 2001 housing units. Includes building types W1 (smaller residential), W1a (larger multi-family residential), and W2 (commercial). Large losses of $244M for M7.9 earthquake event Loss avoided if retrofitted was $172M. The average loss avoided divided by the average retrofit cost was 4:1 and is considered comparatively high. Category V: Pre-1988 Tilt-up Buildings: Inventory of 99 buildings with no housing units. Located mostly in south Palo Alto Harder to retrofit than the woodframe buildings. Losses of $327M with loss avoided if retrofitted of $218M Average loss avoided / average cost ratio is 3:1. Category VI: Pre-1977 Concrete Soft-Story Buildings: Inventory of 37 buildings and 42 housing units. Losses of $125M with loss avoided if retrofitted of $108M Average loss avoided / average cost ratio is 3:1. Category VII: Pre-1998 steel moment frame Inventory of 35 buildings and 85 housing units. Losses of $105M with loss avoided if retrofitted of $76M Highest average loss avoided / average retrofit cost ratio of 11:1 due to loss retrofit cost assumed. Actual ratio likely to be lower. Category VIII: Other pre-1977 concrete buildings: This category was added, in part because the City of L.A. has Seismic Advisory Group Meeting #5 June 27, 2016 1 – 4 pm Rinconada Library MEETING MINUTES – SEISMIC RISK MANAGEMENT ADVISORY GROUP 4 Seismic Risk Management Project | City of Palo Alto an ordinance. Which buildings are the worst performers in this overall category can be difficult to quickly identify and is currently the subject of on-going study. 25 year timeline to retrofit in L.A. BL recommends only Categories IV – VII be considered at this time. Policy Discussion Due to meeting time, only the soft-story wood frame buildings were discussed in detail. Other potential building categories will be discussed at the final meeting. Type IV: SSWF buildings Usage: Residential vs. non-residential Size: Area, number of occupants or units. W1- inventory of 175 units. How many are 50 units or less? BL approximately 20%. 1st step: Notification from Building Department that the building has been identified as a potential soft-story woodframe building. 2nd step: Short, inexpensive screening form completed by a design professional to confirm the building is in fact a soft story and woodframe structure and thus subject to the ordinance. 3rd step: Structural evaluation to determine if structure is o.k. The International Existing Building Code (IEBC) standard can be used for evaluation as well as retrofit. Current version is the 2015 IEBC. Other possibilities are ASCE 41-13 or FEMA P- 807. All three are permitted in San Francisco as part of their soft-story wood frame ordinance. SR: $2,000 - $5,000 estimated cost for seismic evaluation in Berkeley. It was cheaper to develop plans for mandatory retrofit than a structural evaluation and retrofit plan. There was concern for tenant displacement and cost pass- through for retrofits. Renter impacts include: will they have to move-out, e.g. ave cost/s.f. and number unit $10/unit over 10 year, could be written as an ordinance. What about SSWF and URM building that already have been voluntarily retrofitted after the retrofit ordinance has been passed: How to address past partial retrofit conditions and what is fair. Would a structural evaluation by the owner provided to the building department be sufficient? Ordinance should define retrofit scope. Rating System through USRC, U.S. Resiliency Council Following an evaluation, the building receives a rating related to several seismic risk metrics Non-profit organization, similar to USGBC, LEED. Possibility of influencing market for rental rates, insurance premiums lowered, etc. Seismic Advisory Group Meeting #5 June 27, 2016 1 – 4 pm Rinconada Library MEETING MINUTES – SEISMIC RISK MANAGEMENT ADVISORY GROUP 5 Seismic Risk Management Project | City of Palo Alto BL/KH ask Advisory Group: How many are in favor of woodframe soft- story retrofits? 11 in favor. 0 oppose. 1 abstains. Advisory Group Discussion: PACE program is available to help finance retrofits and there is some interest. SSWF buildings should have mandatory retrofit. Loss of life concern has compelling concerns for mandates to retrofit. Population of Palo Alto is approximately 67,000. 5 -10% of the population could be displaced from SSWF. Risk to life is smaller in SSWF buildings Cost of displacement is much higher in SSWF Loss of housing stock in post-earthquake event, usually the most affordable units are impacted, due to lower quality construction. Will the cost of retrofit be fair to landlords or will it impose an undue burden? Level of incentives can help to level the playing field. RR comments that structural evaluation will inform the owner and tenants the building’s risks and may help the city to justify more action to be taken. Structural report may not have influence on insurance companies. If a rating system is available, this may affect bank lenders. GH comments that the Building Division currently has a Class 1 ISO rating in part because of the existing seismic mitigation ordinance. SR comments that currently there is no insurance benefit for retrofits. The City of Berkeley ordinance requires a seismic evaluation and a cost estimate. DH advocated use of mandatory triggers, such as when there is a change of use, a sale or a substantial renovation that costs more than 50% of the replacement cost of the building BL explained San Francisco had a cumulative cost trigger where all previous renovation work was included as well. The Advisory Group did not support this due to the difficulty of enforcement and administration. Advisory Group non-staff members were polled: “How many agree on mandatory SSWF retrofit?” and “How many support mandatory triggers?” There were 7 non-staff members present. One consistently Seismic Advisory Group Meeting #5 June 27, 2016 1 – 4 pm Rinconada Library MEETING MINUTES – SEISMIC RISK MANAGEMENT ADVISORY GROUP 6 Seismic Risk Management Project | City of Palo Alto abstained, leaving 6 “voting.” Synthesis of results is as follows: Option 3 (mandatory evaluation, voluntary retrofit, disclosure, incentives): 6 support at least doing this. Option 4 (mandatory evaluation, retrofits triggered on sale or substantial renovation): 4 support going this far, 2 prefer not stay at Option 3 Option 5 (mandatory evaluation and retrofit): 2 of the remaining 4 support going this; the other 2 do not Option 6: zero. Discussion on polled results: Mandatory triggers were useful in past ordinance. Advisory Group suggests mandatory retrofits on low hanging fruit, i.e., building types that have the lowest average cost to retrofit SR comments that triggers are a stop-gap measure to a mandatory retrofit. A mandatory evaluation with a trigger would be an intermediate measure. Disclosure Measures Bundle 1—Basic Transparency: Inventory lists and information are readily available for owners on websites. · A pdf list that is downloadable from city website · Interactive and/or searchable map · Monthly updates on pdf list · Only the property address should be shown, rather than the owner’s name · List SSWF on deed and title search · Post list after mandatory screening · Staff time concern to support and maintain posting Bundle 2—Community Awareness: Public inventory lists are focused on tenants and citizens, such as tenant notification forms to be signed and on file with the city. · Obtaining signatures is difficult. The Advisory Group does not support this. · Passive notification at time of rental lease signing may be simpler Bundle 3: Onsite signage on buildings with seismic hazards. Example signs can be multi-lingual. Also includes building rating systems. Advisory Group preferences on disclosure measures: Notice on title: low interest Tenant notification: strong interest for passive only approach Community events, involvement, and awareness: good support, Seismic Advisory Group Meeting #5 June 27, 2016 1 – 4 pm Rinconada Library MEETING MINUTES – SEISMIC RISK MANAGEMENT ADVISORY GROUP 7 Seismic Risk Management Project | City of Palo Alto should repeat every few years Required signage following building evaluation, implement only later if retrofit is not undertaken: low to moderate interest. Benefits are less clear. Incentives Who will these measures help: residential or commercial owners? Use housing inventory list element, for preferred density sites to increase FAR, if community benefits are provided. What about SSWF that are condominium developments that need financial help or multi-family buildings with low-equity owners? PACE loans are paid through real estate taxes. Most banks will not allow transferrable PACE loans for refinancing. More incentives are needed on a shorter timeline. Advisory Group preferences on incentives: Fee waiver or expedited review for SSWF and to include residential and commercial: high interest. FAR bonuses that are transferrable: high interest for residential Parking bonus for when dimensional changes reduces density: low interest PACE – like loan program: sounds good, but there was low interest on the 8% rate. Meeting Wrap-Up SR: We obtained enough information from AG4 and AG5 meetings to develop draft language for recommendations RC: Needs more buy-in from Advisory Group in the next meeting that decisions will be made. BL: The final AG6 meeting will focus on discussing the approach to be take with the remaining building categories City of Palo Alto Seismic Risk Management Program Advisory Group Meeting #5 June 27, 2016 AG1 AG2 - Recap Palo Alto policies - State legislative review - Local policy review - Inventory/loss estimate plans AG6 Council Reviews Rec’s - Introductions - Project overview - Policy questions 12/16/15 1/27/16 Survey Losses w/o Retrofit Purpose of Advisory Group To review and discuss implications of the project's technical findings and provide input about community concerns, priorities, and preferences. Before Meeting •AG4 minutes and straw poll results •AG5 handout At Meeting •Refine policy options •Identify conclusions, points of agreement, and issues warranting further attention 3/17/16 AG4 5/16/16 August AG5 6/27/16 -Integration with overall disaster program -Finalize rec’s Draft Recommendations Nov/Dec Losses w/ Retrofit Task 3 Report - Inventory/unretrofitted loss estimate - Local program goals, effectiveness, and options Retrofit Concept/ Estimate Task 2 Report AG3 - Retrofitted loss estimate/ cost-benefit comparison - Introduce policy, incentive, and disclosure options - Discuss potential policies Materials for Council Project and Advisory Group Process Status •Review of minutes from 5/16/16 AG4 meeting •Seismic Risk Management Program Website: http://www.cityofpaloalto.org/gov/depts/ds/s rmag.asp –Added content includes presentation slides and minutes from last meeting plus Task 3 report on local program best practices Guiding Principles •Palo Alto faces significant losses. •Potential benefits from retrofitting are also significant. •Addressing known potentially hazardous building types that are present in large numbers maximizes risk reduction. •A range of policy approaches can be combined into a program package. •A range of disclosure measures and incentives can help stimulate and ease the process. Parameters for Comparing Different Building Types to Target •Number of affected buildings, residential units, commercial tenants •Impacted locations in community •Broad implications for: –Collapse prevention –Losses avoided –Retrofit costs incurred –Average loss avoided/retrofit cost ratio Potential Further Study •Implications for: –Parking –Historic preservation and aesthetics –Small business losses, recovery, and retention –Business recovery and retention –Renter impacts—rental rates, vacancy –Resident recovery and retention Regulatory Strength Inventory Only Strict Mandates Sc o p e Fe w e r B u i l d i n g T y p e s Mo r e B u i l d i n g T y p e s Santa Monica Burbank Alameda OPTION 1: Status Quo OPTION 3: More Types + Disclosure OPTION 2: More Types OPTION 4: More Types, Triggered Mandates Long Beach Richmond Albany OPTION 6: More Types, More Mandates, Fixed Timeline San Francisco Los Angeles Fremont Berkeley Oakland OPTION 5: More Types, Some Mandates, Fixed Timeline Palo Alto Possible Directions for Palo Alto Narrowing in on a Recommended Direction •Little to no support for the status quo •Support existed for: –Resolving buildings already in program, particularly URM buildings –Addressing more building types, particularly soft story woodframe –Including some mandatory requirements –Utilizing a variety of disclosure measures and incentives Still Needing Discussion •Which building types (categories) to add to the program •Extent of mandatory requirements for each new category •Possibly different requirements for residential vs. non-residential •Appropriate timelines •Which disclosure and incentive measures to focus on Policy Option 3: Beyond Soft Story Woodframe, Which Categories Also Warrant Voluntary Measures? (p. 5 in Handout) Category Approx. Building Type Date of Occupants Mandatory Deadlines for Disclosure Incentives Number Construction or Report/ Voluntary Construction (years) Current Program (Potential Revision in /111/ics) I 10 URM NA Over 6 (and Voluntary Report: Expired Website FAR bonus/ over 1900 Const: Not Req. listing. notice TDR sf) 011 title. fVaiver on [I 4 Any Before 1935 Over 100 Voluntary Report: Expired ten am fees. Const: Not Rea. not/ficatio11. exemption Ill 9 Any Before 8/1 /76 Over 300 Voluntary Report: Expired community from fi1111re Const: Not Rcq. evems. requirements, dis1ribute expedited educatit>11al nwrerials permit/ review. parking bom,s/TDR Expanded Program rv 294 Soft story woodfrnme Before 1977 \ny Voluntary Repon:4 Same as Same as Const: Not Rc<J. above'? above'? V 99 Tilt-up Before 1998 l'.ny Voluntary Report: 6 Ditto Ditto Const: Not Req. Vl 37 Soft story concn:te Before 1977 l\ny Voluntary Repor1: 8 Const: Not Rcq. Dit10 Dit10 vu 35 Steel moment frame Before 1998 ~ny Voluntary Rcpon: I 0 Ditto Ditto Const: Not Rcq. Vlll TBD Other older Before 1977 l'.ny Voluntary Report: 25 Ditto Ditto nonductile concrete Const: Not Rcq. Policy Option 5: Which Additional Categories Warrant Mandatory or Voluntary Measures?(p. 6 in Handout) Category Approx. Building Type Date of Occupants Mandatory Deadlines for Disclosure Incentives Number Const.ruction or ReporU Voluntary Construction (years) Current Program (Revisions in Red) l 10 URM NA Over 6 (and Mandatory Report: Expired Website FAR bonus/ over 1900 Const: 6 listing. notice TOR sf) 011 title. ~Vaiver on n 4 Any Before 1935 Over 100 Voluntary Report: Expired tenant fees. Const: Not Rea. 11otiflcatio11. exemption lU 9 Any Before 8/1/76 Over 300 Volunt'Jry Report: Expired commrmity from fi, I II re Const: Not Rcq. eveuf.(;, requireme111s, distribute expedited educarional materials permit/ review. parking bonus!TDR Exp,mded Pmgram JV 294 Soft Story woodfrnme Before 1977 Any Mandatory ,eport: 4 Same as Same as ~onst: 10 above'? above'? V 99 Tilt-up Before 1998 Any Voluntary cport:6 Ditto Ditto ~onst: Not Rcq. Vl 37 Soft stocy concrete Before 1977 Any Voluntary cport: 8 ~onst: Not R.eq. Ditto Ditto VII 35 Steel moment frame Before 1998 Any Voluntary cport: 10 Ditto Ditto "onst: Not Req. Vlll TBD Other older Before 1977 Any Voluntacy eport: 25 Ditto Ditto nonductile concrete ~onsl: Not Rcq. Comparison of Selected Categories Takeaways: •Categories IV-VII have higher benefit-to-cost ratios than the average types and a substantial number of buildings. •Category VIII, without a focus on nonductile characteristics, has an average benefit-to-cost ratio. Which Building Categories to Target •Issues for each potential category: –Whether to add the category to the current ordinance scope –Whether the category should be mandatory or voluntary –Whether the category characteristics should be refined/defined by •Usage (such as residential vs. non-residential) •Size (such as square footage, occupants, or units) Which Building Categories to Target •IV: Pre-1977 woodframe soft story •V: Pre-1998 tilt-up •VI: Pre-1977 concrete soft story •VII: Pre-1998 steel moment frame •VIII: Other pre-1998 concrete Which Building Categories to Target •Should comprehensive upgrades be required for past partial retrofits of buildings in mandatory category? –Example: URM building with parapet strengthening and roof-to-wall ties, but no other retrofit work like out-of-plane wall bracing, in-plane wall strengthening, or diaphragm strengthening. Policy Option 3: What Are Appropriate Timelines for Additional Voluntary Measures? Category Approx. Building Type Date of Occupants Mandatory Deadlines for Disclosure Incentives Number Construction or Report/ Voluntary Construction (years) Current Program (Potential Revision in /111/ics) I 10 URM NA Over 6 (and Voluntary Report: Expired Website FAR bonus/ over 1900 Const: Not Req. listing. notice TDR sf) 011 title. fVaiver on [I 4 Any Before 1935 Over 100 Voluntary Report: Expired ten am fees. Const: Not Rea. not/ficatio11. exemption Ill 9 Any Before 8/1 /76 Over 300 Voluntary Report: Expired community from fi1111re Const: Not Rcq. evems. requirements, dis1ribute expedited educatit>11al nwrerials permit/ review. parking bom,s/TDR Expanded Program rv 294 Soft story woodfrnme Before 1977 Any Voluntary Repon:4 S· h1e as Same as Const: Not Rc<J. a pve'? above'? V 99 Tilt-up Before 1998 Any Voluntary Report: 6 D to Ditto Const: Not Req. Vl 37 Soft story concn:te Before 1977 Any Voluntary Repor1: 8 Const: Not Rcq. D 10 Dit10 vu 35 Steel moment frame Before 1998 Any Voluntary Rcpon: I 0 D to Ditto Const: Not Rcq. Vlll TBD Other older Before 1977 Any Voluntary Report: 25 D to Ditto nonductile concrete Const: Not Rcq. Policy Option 5: What Are Appropriate Timelines for Mandatory Measures? Category Approx. Building Type Date of Occupants Mandato , Deadlines for [ ~closure Incentives Number Const.ruction or ReporU Voluntar Construction (years) Current Program (Revisions in Red) l 10 URM NA Over 6 (and Mandato, Report: Expired JI ibsite FAR bonus/ over 1900 Const: 6 Ii ing. notice TOR sf) 0 title. ~Vaiver on n 4 Any Before 1935 Over 100 Voluntari Report: Expired /~ ant fees. Const: Not Rea. II ~iflcatio11. exemption lU 9 Any Before 8/1/76 Over 300 Volunt'Jry Report: Expired c, mnrmity from fi, I II re Const: Not Rcq. e lmts. requireme111s, d tribute expedited e, 1carional permit/ II teria/s review. parking bonus!TDR Exp,mded Pmgram JV 294 Soft Story woodfrnme Before 1977 Any Mandator Report: 4 s 11e as Same as Const: 10 a pvc'? above'? V 99 Tilt-up Before 1998 Any Voluntar} Report: 6 C no Ditto Const: Not Rcq. Vl 37 Soft stocy concrc1c Before 1977 Any Volun1ar Report: 8 LJ tto Ditto Const: Not Req. VII 35 Steel moment frame Before 1998 Any Voluntary Report: 10 Const: Not Req. LJ tto Ditto Vlll TBD Other older Before 1977 Any Voluntary Report: 25 C no Ditto nonductile concrete Const: Not Rcq. Timeline Possibilities •Compliance milestones: –Submit a screening form –Submit an evaluation report –Submit drawings for permit –Complete the work •Often several subcategories or priority tiers are set up with phased timelines –# units, use, # stories, soil conditions –Higher risk to life usually is done first Approaches to Soft Story Woodframe Jurisdiction # of Soft-story Buildings Program Type Targeted Building Characteristics Priorities or Tiers Deadline for Evaluation Deadline for Permit Deadline for Completion Los Angeles unknown Mandatory Evaluation leading to mandatory retrofit Pre-1978 wood-frame structures with soft, weak or open front first floor conditions with two or more stories and five or more units. Only enforcement is prioritized by tiers Priority I - Buildings containing 16 or more dwelling units 1 year 2 years 7 years Priority II - Buildings with three stories or more, containing fewer than 16 dwelling units Priority III - Buildings not falling within the definition of Priority I or II San Francisco 2,800 Mandatory evaluation leading to mandatory retrofit Wood frame construction with five or more residential units and two or more stories with permit for construction submitted prior to January 1, 1978 and five or more units Tier I - educational, assembly, or residential care facility uses 1.5 years 2.5 years 4.5 years Tier II - 15 or more dwelling units 2.5 years 3.5 years 5.5 years Tier III - Any building not falling within another tier 3.5 years 4.5 years 6.5 years Tier IV - ground floor commercial uses 4.5 years 5.5 years 7.5 years Approaches to Soft Story Woodframe Jurisdiction # of Soft-story Buildings Program Type Targeted Building Characteristics Priorities or Tiers Deadline for Evaluation Deadline for Permit Deadline for Completion Oakland 1,380 Mandatory Screening (passed 2009) leading to mandatory retrofit Pre-1985 multi-family wood frame structures with five or more units n/a Berkeley 310 (at time of 2005 ordinance) Mandatory evaluation law (2005) leading to mandatory retrofit (2014) Multi-family wood frame structures with five or more units n/a 2 years (under previous soft-story evaluation ordinance) 2 years 4 years Alameda 70 Mandatory evaluation Five or more units n/a 2 years Fremont 22 Mandatory retrofit Apartment house with more than ten units or more than two stories Group 1 - Apartment house with more than ten units or more than two stories n/a 2 years 4 years Group II - Apartment house with ten or less units and fewer than three stories high n/a 2.5 years 5 years Existing Approaches to Older Concrete Jurisdiction # Older Concrete Buildings Program Type Targeted Building Characteristics Deadlines Screening Evaluation Completion Los Angeles ~1500 Fixed timeline mandatory evaluation leading to mandatory retrofit Pre-1976 tilt-ups and nonductile concrete 3 years 10 years 25 years Santa Monica ~173 Triggered mandatory evaluation leading to mandatory retrofit Pre-1978 nonductile concrete n/a 275 days 1 to 4 years depending on priority tiers Long Beach ~396 Voluntary guidance Nonductile concrete n/a Burbank ~132 Voluntary guidance Commercial pre-1977 reinforced concrete and concrete frame buildings with masonry infill n/a 10 Minute Stretch Break Bundle 3—Signage •Onsite-focused •Some ongoing enforcement costs •May draw public attention •Owners fear more stigma than may actually occur Bundle 2—Community Awareness •Tenant- and citizen- focused •Some upfront and ongoing enforcement costs •Empowers informed decisions Bundle 1—Basic Transparency •Building owner-focused •Some upfront and ongoing IT costs •Promotes information access Disclosure Measures Vary in Strategy, Ease of Implementation, and Effectiveness More Difficult to Implement DISCLOSURE MEASURES Make the list more prominent on city website Include compliance status on the city website Record notice on title Require tenant notification Community events (e.g., forums, retrofit fairs) Distribute educational materials Require signage until retrofit is completed Require signage in perpetuity Encouraging or requiring use of building rating systems Easier to Implement Possible Directions for Use of Disclosure •Strong support for transparency and community awareness measures •Support for requiring signage was lower and contingent on type of program, type of building, content, and timing Disclosure Measure Questions •Notice on title •Tenant notification •Community events and public education? •Require signage? –If so, when? (e.g., only for voluntary categories after a period of time without retrofit) •Rating system Type 1: Basic Help Incentive Options for Palo Alto More Difficult to Implement FINANCIAL INCENTIVES POLICY INCENTIVES Waivers or reductions of building department fees Property-Assessed Financing Loan (PACE*) Other subsidized or special term loans Real estate transfer tax rebates Special district or historic designation tax reductions Tax credits Grants General obligation or special purpose bonds Exemption from future retrofit requirements Expedited permits, inspections, and reviews Exemptions or relief from standards or non-conforming conditions Technical assistance for owners on navigating financing, compliance, and project management issues Zoning relief (e.g., setbacks, parking) Density or intensity bonuses (e.g., FAR) Transfer of Development Rights (TDR) Easier to Implement Type 2: Project Facilitation Type 3: Deeper Financial Assistance * PACE = Property Assessed Clean Energy Possible Directions on Incentives •Basic assistance viewed favorably but not as especially helpful •Little support for major bond initiative or special districting •Strongest interest was in project facilitation measures, particularly policy incentives –Zoning relief, transfer of development rights, floor area bonus Which Incentive Measures Would Be Most Feasible and Effective? •Fee waiver or expedited review •Floor Area Ratio (FAR) bonus •Parking bonus •Transfer of development rights (TDR) •Need for PACE-like loan program Meeting Wrap-Up and Follow-Ups •Outcomes from today •Next steps Comparison of Selected Categories Takeaways: •Categories IV-VII have higher benefit-to-cost ratios than the average types and a substantial number of buildings. •Category VIII, without a focus on nonductile characteristics, has an average benefit-to-cost ratio. Seismic Advisory Group Meeting #6 Aug 15, 2016 1 – 4 pm Rinconada Library MEETING MINUTES – SEISMIC RISK MANAGEMENT ADVISORY GROUP 1 Seismic Risk Management Project | City of Palo Alto Attendance By: George Hoyt (GH), Chief Building Official COPA Evon Ballash (EB), Assistant Building Official COPA Meg Monroe (MM), Senior Planner COPA Nathan Rainey (NR), OES Coordinator COPA Bret Lizundia (BL), Principal, Rutherford+Chekene (R+C) Sharyl Rabinovici (SR), Subconsultant to R+C Anil Babbar (AB), CAA Dana Brechwald (DB), ABAG Rich Cody (RC), Cody Brock Doug Hohbach (DH), Hohbach – Lewin Tom Holzer (TH), USGS Teresa Marks (TM), Hudson Pacific Roxy Rapp (RR), Developer Minutes Prepared By: Evon Ballash ITEMS DISCUSSION Introduction General: Introduction by GH/BL: This is the last advisory meeting. The objectives of this meeting are to discuss the Seismic Risk Management Advisory Group (SRMAG) draft status report summary and complete the Advisory Group review of the remaining building types. Meeting #5 minutes were approved without comments. Program Timeline The timeline and purpose of the Advisory Group was discussed. After this meeting, the SRMAG draft report summary will be updated for review by the SRMAG. The SRMAG report summary will be included in the documents the City Council receives for their Dec. 5th meeting. Council packet is due six (6) weeks prior to the meeting. The packet will be available to the public and the SRMAG 1-2 weeks prior on the website. This meeting will discuss: Draft report summary Policy options for tilt-up buildings, soft story concrete buildings and other non-ductile concrete buildings, and older steel moment frame buildings. Guiding Principles Possible directions: Consensus was to go beyond the status quo: Options 3, 4, 5: Had the most preference Definitions: Option 3: Voluntary measures Option 4: Triggered measures e.g., at the time of sale or when there is a substantial renovation Seismic Advisory Group Meeting #6 Aug 15, 2016 1 – 4 pm Rinconada Library MEETING MINUTES – SEISMIC RISK MANAGEMENT ADVISORY GROUP 2 Seismic Risk Management Project | City of Palo Alto Option 5: Mandatory measures with timelines for survey report start and complete work. RR: What are the relative risks to life for URM, soft-story wood frame (SSWF), and tilt-up? BL: URM buildings are the most risky building type both from the threat to life safety and to property damage. Certain subsets of wood frame buildings have increased risk, e.g. SSWF where there is significantly increased risk of damage or collapse at the weak and flexible ground story. In older tilt-up buildings, the primary concern is inadequate connections between the roof and floor diaphragms and the concrete wall which can lead to the walls falling outward and partial collapse. Large Group Discussion on Building Categories, Timelines and Incentives SR: Incentives for policy and financial: Type 1: Basic help Type 2: COPA to could consider using PACE loans; there is mixed data on desirability of TDR or FAR bonuses. High interest as motivation for voluntary measures; this would ease the burden of mandatory measures. RR: Concerned that mandatory or retrofit without incentives would not be successful or well received by developers and contractors. SR: Work on a matrix of building types with incentives to reduce risk. GH: Would prefer at a minimum that a mandatory seismic evaluation is required for all potentially hazardous building types. TM: Prefers a menu of incentives for multi-family and commercial instead of a matrix. GH: An incentive could be exemptions or relief from standard or non-conforming conditions from a planning perspective. DB: Brings up San Francisco Chronicle newspaper article on the progress of San Francisco’s mandatory soft-story wood frame ordinance where converting ground story parking to occupied space was noted as an important development and incentive. BL: This could be done in Palo Alto as well. RC: Focus on owners of SSWF to encourage them to retrofit. RC: Also focus on those who don’t care or can’t afford retrofitting without some form of assistance or incentive. DH: URM retrofitting should be mandatory, and SSWF may have softer language. DH: TDR or FAR would be very productive, but stay within the same occupancy and building types. City Council may not be favorable to increase in commercial density. BL: What is the approximate market value of TDR? Group suggested that if a property has a $1000/sf value for the land Seismic Advisory Group Meeting #6 Aug 15, 2016 1 – 4 pm Rinconada Library MEETING MINUTES – SEISMIC RISK MANAGEMENT ADVISORY GROUP 3 Seismic Risk Management Project | City of Palo Alto and building, with the land at $400/sf and the building at $600/sf, that the TDR might be half of the building value or $300/sf. DH: Consider a trigger threshold of say 50% of market value. Thus, if the renovation were more than $250/sf for a building with a replacement cost of $500/sf, it would exceed the substantial renovation trigger. RR: URM commercial buildings will not attract Class A tenants TM: Parking relief is not attractive to renters and tenants. BL: Loss estimate in the project scope only considers property damage. If an estimate were to monetize loss of life and loss of use, then the benefit-to-cost ratio would increase. RR: Those owners that have not retrofitted that receive the most benefits will not be well received by the community. SR: 1:5 homeowners think that their insurance covers earthquake damage. BL: PML (Probable Maximum Loss) evaluations are used in the banking world. When the PML loss is greater than 20% of replacement value, it may be difficult to get a loan. RR: Landlord incentives would be lower insurance and better tenants. RC: Absentee owners may not be aware of incentives. The voluntary program may not be as effective. RR: Voluntary program is only effective for the progressive owners with interest in renovation. RR: There are many owners in Palo Alto who inherited property and they just want to keep the property as it is and maintain the current rent stream. SR: City of Berkeley had a 2-phase retrofit program: 1st phase: voluntary with more incentives 2nd phase: mandatory with less incentives TM: This sounds promising. BL: This is similar to Option 5 with declining incentives. RC: Should come up with a cost range for seismic evaluations. SR: In Berkeley, a $2,000 – $12,000 range for soft-story engineering evaluation was reported. It was often found to be cost effective to combine the evaluation with the final retrofit design. Seismic Advisory Group Meeting #6 Aug 15, 2016 1 – 4 pm Rinconada Library MEETING MINUTES – SEISMIC RISK MANAGEMENT ADVISORY GROUP 4 Seismic Risk Management Project | City of Palo Alto Large Group Discussion on Category V: Tilt-Up Buildings BL: Tilt-up buildings include approximately 100 buildings in Palo Alto. Many are located east of Highway 101 or just west of 101 and north of San Antonio Road, and are mostly commercial buildings with offices. The focus is on older buildings that include pre-1998 construction. There was significant damage in San Fernando Valley in Northridge earthquake and the building code was upgraded in 1997 to improve performance, particularly with the connections between the perimeter walls and the roof and floors. The tilt-up building category contains a large overall square footage value. DH: Are the 2-3 story tilt-ups as dangerous as the one-story tilt- ups that were damaged in the San Fernando and Northridge Earthquakes? BL: Good question. Details of the floor-to-wall connections in these multi-story tilt-ups would be a key feature of an engineering seismic evaluation. RC: Tilt-up buildings can be retrofitted with the building occupied.RC: Foresees 50% of new owners retrofitting tilt-up buildings. A common scenario is taking a warehouse and converting it to a start-up, where the occupant density increases. Thus, while the building hazard is similar, the risk to life safety has increased. TM: Tilt-up buildings should have mandatory screening with voluntary measures. BL: Substantial could be a trigger, such as Option 4.DH: Without triggers, owners may not be fully aware of inherent risks. Previously, the building code had a cost trigger that was 50% of the replacement cost. The Engineering News Record (ENR) cost was used, and for Palo Alto it is too low. BL: Group consensus is there is strong interest in retrofitting tilt- ups because there is a large overall square footage in the category, the retrofit cost is comparatively low, there is substantial renovation work that could be leveraged, and exposure is increasing as a result of the conversions. Large Group Discussion on Category VI: Soft Story Concrete Buildings BL: The concrete soft-story building category focuses on older (pre-1977) buildings before certain detailing provisions were added to the code and that have a weak or flexible ground story which can have an increased likelihood of collapse. The category includes 42 housing units. These buildings can be expensive and not so easy to retrofit. Substantial retrofit requires the building to be vacant. GH: Building Official’s perspective would want mandatory screening and evaluation. SR: It is important to recognize the difference between screening and an engineering evaluation and the different associated costs. Seismic Advisory Group Meeting #6 Aug 15, 2016 1 – 4 pm Rinconada Library MEETING MINUTES – SEISMIC RISK MANAGEMENT ADVISORY GROUP 5 Seismic Risk Management Project | City of Palo Alto BL: Screening can be a one-page form to be confirmed and/or completed by typically an architect or engineer for a nominal cost. An engineering evaluation would be more detailed, and can vary significantly depending on the type of building and the scope of services. It may include document review, finish removal to investigate building details, material testing, and calculations to standards such as the International Existing Building Code (IEBC) or ASCE 41. RR: Planning review is the most difficult and time consuming to approve, “Time is money”. RR: Provide expedited planning review for building permits as an incentive. Large Group Discussion on Category VII: Steel Moment Frame Buildings BL: Category VII: Pre-1998 steel moment frame buildings had unforeseen serious damage in the Northridge Earthquake. As a result, there were code changes to the 1997 building codes to address these concerns. These buildings have the highest benefit to cost ratio for seismic retrofitting. There are approximately 85 residential units in the estimated 35 buildings. However, these buildings are difficult to screen as the structural beam and column framing members are under fire-proofing coatings and gypsum board coverings. These buildings are generally one to five stories in height. DB: Good candidate for voluntary retrofit due to the high benefit- to-cost ratio and relative ease to retrofit. Large Group Discussion on Category VIII: Other Older Non-Ductile Concrete Buildings BL: Category VIII: Older Pre-1977 concrete buildings. New information shows that the performance for many of these buildings may be better than expected. Due to the lack of inexpensive analytical methods for reliably identifying the worst of these buildings, inclusion of this building category in an updated ordinance is not recommended at this time. Such buildings could be included in the future when such analytical methods have been developed in the engineering community. Advisory Group concurred. Meeting Wrap-Up BL: Based on discussions, mandatory retrofit is preferred for remaining URMs, there is high interest in retrofitting SSWF and relatively high interest in retrofitting tilt-up buildings particularly those undergoing conversions, there is some interest in retrofitting soft story concrete buildings and older steel moment frames. Incentives are desired. SR: An update of the SRMAG memo will incorporate Advisory Group input and be issued for review after the meeting. SR: The City may wish to include an Advisory Group member as a speaker during the presentation to Council on December 5. City of Palo Alto Seismic Risk Management Program Advisory Group Meeting #6 August 15, 2016 AG1 AG2 - Recap Palo Alto policies - State legislative review - Local policy review - Inventory/loss estimate plans AG6 Council Reviews Rec’s - Introductions - Project overview - Policy questions 12/16/15 1/27/16 Survey Losses w/o Retrofit Purpose of Advisory Group To review and discuss implications of the project's technical findings and provide input about community concerns, priorities, and preferences. Before Meeting •AG5 minutes •Draft status summary report At Meeting •Review draft summary report •Discuss remaining building categories 3/17/16 AG4 5/16/16 8/15/16 AG5 6/27/16 Draft Rec’s (handout) 12/5/16 Losses w/ Retrofit Task 3 Report - Inventory/unretrofitted loss estimate - Local program goals, effectiveness, and options Retrofit Concept/ Estimate Task 2 Report AG3 - Retrofitted loss estimate/ cost-benefit comparison - Introduce policy, incentive, and disclosure options - Discuss potential policies Materials for Council - Refine policy options - Identify points of agreement and issues - Focus on soft-story WF Project and Advisory Group Process Status •Review of minutes from 6/27/16 AG5 meeting •Seismic Risk Management Program Website: http://www.cityofpaloalto.org/gov/depts/ds/s rmag.asp –Added content includes presentation slides from last meeting Agenda and Meeting Goals •Discussion of draft status summary report handout •Discuss policy options for: –Tilt-up buildings –Soft-story concrete and other older nonductile concrete buildings –Older steel moment frames •Conclusions and wrap-up Guiding Principles •Palo Alto faces significant losses. •Potential benefits from retrofitting are also significant. •Addressing known potentially hazardous building types that are present in large numbers maximizes risk reduction. •A range of policy approaches can be combined into a program package. •A range of disclosure measures and incentives can help stimulate and ease the process. Regulatory Strength Inventory Only Strict Mandates Sc o p e Fe w e r B u i l d i n g T y p e s Mo r e B u i l d i n g T y p e s Santa Monica Burbank Alameda OPTION 1: Status Quo OPTION 3: More Types + Disclosure OPTION 2: More Types OPTION 4: More Types, Triggered Mandates Long Beach Richmond Albany OPTION 6: More Types, More Mandates, Fixed Timeline San Francisco Los Angeles Fremont Berkeley Oakland OPTION 5: More Types, Some Mandates, Fixed Timeline Palo Alto Possible Directions for Palo Alto Bundle 3—Signage •Onsite-focused •Some ongoing enforcement costs •May draw public attention •Owners fear more stigma than may actually occur Bundle 2—Community Awareness •Tenant- and citizen- focused •Some upfront and ongoing enforcement costs •Empowers informed decisions Bundle 1—Basic Transparency •Building owner-focused •Some upfront and ongoing IT costs •Promotes information access Disclosure Measures Vary in Strategy, Ease of Implementation, and Effectiveness More Difficult to Implement DISCLOSURE MEASURES Make the list more prominent on city website Include compliance status on the city website Record notice on title Require tenant notification Community events (e.g., forums, retrofit fairs) Distribute educational materials Require signage until retrofit is completed Require signage in perpetuity Encouraging or requiring use of building rating systems Easier to Implement Type 1: Basic Help Incentive Options for Palo Alto More Difficult to Implement FINANCIAL INCENTIVES POLICY INCENTIVES Waivers or reductions of building department fees Property-Assessed Financing Loan (PACE*) Other subsidized or special term loans Real estate transfer tax rebates Special district or historic designation tax reductions Tax credits Grants General obligation or special purpose bonds Exemption from future retrofit requirements Expedited permits, inspections, and reviews Exemptions or relief from standards or non-conforming conditions Technical assistance for owners on navigating financing, compliance, and project management issues Zoning relief (e.g., setbacks, parking) Density or intensity bonuses (e.g., FAR) Transfer of Development Rights (TDR) Easier to Implement Type 2: Project Facilitation Type 3: Deeper Financial Assistance * PACE = Property Assessed Clean Energy Policy Option 5: Increase Scope, with Some Categories Voluntary and a Few Categories Mandatory with Fixed Deadlines(p. 8 in Handout) Still Needing Discussion •Policies for remaining building categories •Should FAR bonuses and parking exemptions be permitted for: –Retrofitted buildings? –Other buildings through TDR? •Include PACE loans in incentives? •Appropriate timelines •Other issues Comparison of Selected Categories Takeaways: •Categories IV-VII have higher benefit-to-cost ratios than the average types and a substantial number of buildings. •Category VIII, without a focus on nonductile characteristics, has an average benefit-to-cost ratio. Meeting Wrap-Up and Follow-Ups •Outcomes from today •Next steps